2007 California Code of Civil Procedure Article 14. Liability Of Principal And Sureties

CA Codes (ccp:996.410-996.495)

996.410.  (a) The beneficiary may enforce the liability on a bond
against both the principal and sureties.
   (b) If the beneficiary is a class of persons, any person in the
class may enforce the liability on a bond in the person's own name,
without assignment of the bond.



996.420.  (a) A surety on a bond given in an action or proceeding
submits itself to the jurisdiction of the court in all matters
affecting its liability on the bond.
   (b) This section does not apply to a bond of a public officer or
fiduciary.



996.430.  (a) The liability on a bond may be enforced by civil
action.  Both the principal and the sureties shall be joined as
parties to the action.
   (b) If the bond was given in an action or proceeding, the action
shall be commenced in the court in which the action or proceeding was
pending.  If the bond was given other than in an action or
proceeding, the action shall be commenced in any court of competent
jurisdiction, and the amount of damage claimed in the action, not the
amount of the bond, determines the jurisdictional classification of
the case.
   (c) A cause of action on a bond may be transferred and assigned as
other causes of action.



996.440.  (a) If a bond is given in an action or proceeding, the
liability on  the bond may be enforced on motion made in the court
without the necessity of an independent action.
   (b) The motion shall not be made until after entry of the final
judgment in the action or proceeding in which the bond is given and
the time for appeal has expired or, if an appeal is taken, until the
appeal is finally determined. The motion shall not be made or notice
of motion served more than one year after the later of the preceding
dates.
   (c) Notice of motion shall be served on the principal and sureties
at least 30 days before the time set for hearing of the motion.  The
notice shall state the amount of the claim and shall be supported by
affidavits setting forth the facts on which the claim is based.  The
notice and affidavits shall be served in accordance with any
procedure authorized by Chapter 5 (commencing with Section 1010).
   (d) Judgment shall be entered against the principal and sureties
in accordance with the motion unless the principal or sureties serve
and file affidavits in opposition to the motion showing such facts as
may be deemed by the judge hearing the motion sufficient to present
a triable issue of fact.  If such a showing is made, the issues to be
tried shall be specified by the court.  Trial shall be by the court
and shall be set for the earliest date convenient to the court,
allowing sufficient time for such discovery proceedings as may be
requested.
   (e) The principal and sureties shall not obtain a stay of the
proceedings pending determination of any conflicting claims among
beneficiaries.



996.450.  No provision in a bond is valid that attempts by contract
to shorten the period prescribed by Section 337 or other statute for
the commencement of an action on the bond or the period prescribed by
Section 996.440 for a motion to enforce a bond.  This section does
not apply if the principal, beneficiary, and surety accept a
provision for a shorter period in a bond.



996.460.  (a) Notwithstanding Section 2845 of the Civil Code, a
judgment of liability on a bond shall be in favor of the beneficiary
and against the principal and sureties and shall obligate each of
them jointly and severally.
   (b) The judgment shall be in an amount determined by the court.
   (c) A judgment that does not exhaust the full amount of the bond
decreases the amount of the bond but does not discharge the bond.
The liability on the bond may be enforced thereafter from time to
time until the amount of the bond is exhausted.
   (d) The judgment may be enforced by the beneficiary directly
against the sureties.  Nothing in this section affects any right of
subrogation of a surety against the principal or any right of a
surety to compel the principal to satisfy the judgment.




996.470.  (a) Notwithstanding any other statute other than Section
996.480, the aggregate liability of a surety to all persons for all
breaches of the condition of a bond is limited to the  amount of the
bond.  Except as otherwise provided by statute, the liability of the
principal is not limited to the amount of the bond.
   (b) If a bond is given in an amount greater than the amount
required by statute or by order of the court or officer pursuant to
statute, the liability of the  surety on the bond is limited to the
amount required by statute or by order of the court or officer,
unless the amount of the bond has been increased voluntarily or by
agreement of the parties to satisfy an objection to the bond made in
an action or proceeding.
   (c) The liability of a surety is limited to the amount stipulated
in any of the following circumstances:
   (1) The bond contains a stipulation pursuant to Section 995.520
that the liability of a personal surety is limited to the worth of
the surety.
   (2) The bond contains a stipulation that the liability of a surety
is an amount less than the amount of the bond pursuant to a statute
that provides that the liability of sureties in the aggregate need
not exceed the amount of the bond.



996.475.  Nothing in this chapter is intended to limit the liability
of a surety pursuant to any other statute.  This section is
declaratory of, and not a change in, existing law.



996.480.  (a) If the nature and extent of the liability of the
principal is established by final judgment of a court and the time
for appeal has expired or, if an appeal is taken, the appeal is
finally determined and the judgment is affirmed:
   (1) A surety may make payment on a bond without awaiting
enforcement of the bond.  The amount of the bond is reduced to the
extent of any payment made by the surety in good faith.
   (2) If the beneficiary makes a claim for payment on a bond given
in an action or proceeding after the liability of the principal is so
established and the surety fails to make payment, the surety is
liable for costs incurred in obtaining a judgment against the surety,
including a reasonable attorney's fee, and interest on the judgment
from the date of the claim, notwithstanding Section 996.470.
   (b) Partial payment of a claim by a surety shall not be considered
satisfaction of the claim and the beneficiary may enforce the
liability on the bond.  If a right is affected or a license is
suspended or revoked until payment of a claim, the right continues to
be affected and the license continues to be suspended or revoked
until the claim is satisfied in full.



996.490.  (a) Payment by a surety of the amount of a bond
constitutes a full discharge of all the liability of the surety on
the bond.
   (b) Each surety is liable to contribution to cosureties who have
made payment  in proportion to the amount for which each surety is
liable.


996.495.  A judgment of liability on a bond may be enforced in the
same manner and to the same extent as other money judgments.