8550-8560

CIVIL CODE
SECTION 8550-8560




8550.  (a) A claimant shall commence an action to enforce payment of
the claim stated in a stop payment notice at any time after 10 days
from the date the claimant gives the stop payment notice.
   (b) A claimant shall commence an action to enforce payment of the
claim stated in a stop payment notice not later than 90 days after
expiration of the time within which a stop payment notice must be
given.
   (c) An action under this section may not be brought to trial or
judgment entered before expiration of the time provided in
subdivision (b).
   (d) If a claimant does not commence an action to enforce payment
of the claim stated in a stop payment notice within the time
prescribed in subdivision (b), the notice ceases to be effective and
the person withholding funds pursuant to the notice shall release
them.
   (e) Within five days after commencement of an action to enforce
payment of the claim stated in a stop payment notice, the claimant
shall give notice of commencement of the action to the persons to
whom the stop payment notice was given. The notice shall comply with
the requirements of Chapter 2 (commencing with Section 8100) of Title
1.


8552.  If more than one claimant has given a stop payment notice:
   (a) Any number of claimants may join in the same enforcement
action.
   (b) If claimants commence separate actions, the court first
acquiring jurisdiction may order the actions consolidated.
   (c) On motion of the owner or construction lender the court shall
require all claimants to be impleaded in one action, to the end that
the rights of all parties may be adjudicated in the action.



8554.  Notwithstanding Section 583.420 of the Code of Civil
Procedure, if an action to enforce payment of the claim stated in a
stop payment notice is not brought to trial within two years after
commencement of the action, the court may in its discretion dismiss
the action for want of prosecution.



8556.  A stop payment notice ceases to be effective, and a person
withholding funds pursuant to the notice shall release them, in
either of the following circumstances:
   (a) An action to enforce payment of the claim stated in the stop
payment notice is dismissed, unless expressly stated to be without
prejudice.
   (b) Judgment in an action to enforce payment of the claim stated
in the stop payment notice is against the claimant.



8558.  (a) In an action to enforce payment of the claim stated in a
bonded stop payment notice, the prevailing party is entitled to a
reasonable attorney's fee in addition to costs and damages.
   (b) The court, on notice and motion by a party, shall determine
who is the prevailing party or that there is no prevailing party for
the purpose of this section, regardless of whether the action
proceeds to final judgment. The prevailing party is the party that
recovers greater relief in the action, subject to the following
limitations:
   (1) If the action is voluntarily dismissed or dismissed pursuant
to a settlement, there is no prevailing party.
   (2) If the defendant tenders to the claimant the full amount to
which the claimant is entitled, and deposits in court for the
claimant the amount so tendered, and alleges those facts in the
answer and the allegation is determined to be true, the defendant is
deemed to be the prevailing party.


8560.  If the claimant is the prevailing party in an action to
enforce payment of the claim stated in a bonded stop payment notice,
any amount awarded on the claim shall include interest at the legal
rate calculated from the date the stop payment notice is given.