Walt Rankin & Associates, Inc. v. City of Murrieta

In Walt Rankin & Associates, Inc. v. City of Murrieta (2000) 84 Cal.App.4th 605, a subcontractor, who built a playground for the City of Murrieta and was not paid by the general contractor, sued the city under Government Code section 815.6 for violating its mandatory duty to determine whether the surety providing the payment bond, Red Sea, was an admitted surety insurer under the payment bond statutes and the Bond and Undertaking Law. The Court held that the city had a mandatory duty under Code of Civil Procedure section 995.660, subdivision (a)(3), to determine whether Red Sea was an admitted surety insurer. In arriving at this conclusion, we did not discuss Aubry but focused on the duty imposed upon the public entity under Civil Code sections 3247 and 3248 and the bonds and undertakings law. In failing to discharge its mandatory duty, we held the city was liable under Government Code section 815.6. (Rankin, supra, 84 Cal.App.4th at pages 624, 628.)