In Leatherby Ins. Co. v. City of Tustin (1977) 76 Cal. App. 3d 678, a surety sued the City of Tustin under contractors' bonds for funds withheld from the contractor following its refusal to pay several laborers and suppliers.
The surety was successful.
As the prevailing party, the surety was awarded its attorney fees because the action was on the bonds both of which included a reasonable attorney fees clause. (Leatherby, supra, 76 Cal. App. 3d 678, 690.)