Sacramento Municipal Utility District v. Fcc Corp.

Line of Business : Surety
Court Type : Appellate
Case Type : Performance Bonds
Case Subtype : Attorneys Fees
State : California
Case Date : 09/07/2012
Case Description :

Sacramento Municipal Utility District v. Fcc Corp., 2012 WL 2703135 (Cal.App. July 9, 2012) affirmed a large judgment for the public owner against the contractor.  The owner cross appealed the trial court’s denial of its claim for attorneys fees.  There was no fee shifting provision in the contract, but the owner relied on the performance bond, which stated, “In the event suit is brought upon this bond by the Obligee and judgment is recovered, the Surety shall pay all costs incurred by the Obligee in such suit, including a reasonable attorney’s fee to be fixed by the Court.”  The Court held that this provision did not apply to fees for suing on the construction contract.