Can a subcontractor obtain attorney fees and costs incurred in arbitration in this action?

California, United States of America


The following excerpt is from Liton Gen. Engineering Contractor, Inc. v. United Pacific Insurance, 16 Cal.App.4th 577, 20 Cal.Rptr.2d 200 (Cal. App. 1993):

Subcontractor's attempt to collect its attorney fees and costs incurred in arbitration in this action violates the rule that a surety cannot be liable for more than its principal, and constitutes a forbidden attempt to vary or vacate the arbitration award without any sufficiently compelling reason. (See Moncharsh v. Heily & Blase, supra, 3 Cal.4th at p. 10, 10 Cal.Rptr.2d 183, 832 P.2d 899.) The surety was immune [16 Cal.App.4th 610] from payment of subcontractor's arbitration fees under the present statutory scheme.

The applicable law wholly precludes the majority's result. I would reverse the judgment.

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