Preview
I MICHELLE R. FERBER, II 149929
CONNOR M. DAY, 11233245 E-FILED
2 FERBER LAW. A Professional Corporation 10/8/2019 12:05 PM
2603 Camino Ramon, Suite 385 Superior Court of California
3 San Ramon, California 94583 County of Fresno
(925) 355-9800
By: A. Ramos, Deputy
4 (925) 263-1676 FAX
5 Attorneys for Defendant
American Contractors Indemnity Company
6
IN THE SUPERIOR COURT OF THF, STATE OF CALIFORNIA
COUNTY OF FRESNO
10
11 EDWARD FUNEZ, an individual, Case No. 19CFCG02755
12 Plaintiff, DEFENDANT AMERICAN CONTRACTOR
INDEMNITY COMPANY'S ANSWER TO
13 vs. , COMPLAINT
14 FIRE INSURANCE EXCHANGE;
BENEVENTO'S CLEANING & RESTORATION
15 SERVICE, INC. DBA SERVICE MASTER BY
BFNEVENTO; AMERICAN CONTRACTORS
16 INDEMNITY COMPANY; and DOES I through
20, inclusive,
17
Defendants.
19
20 Defendant American Contractors Indemnity Company (hereinafter referred to as "SURETY")
21 hereby answers Plaintiff Fdward Funez's ("Plaintif1") Complaint, filed on July 30, 2019 (the
22 "Complaint" ), as follows:
23 GENERAL DENIAL
24 Pursuant to the provisions of California Code of Civil Procedure Section 431.30, SURFTY denies
25 generally and specifically each and every allegation contained in each and every paragraph of each and
26 eveiy purported cause of action in the Complaint, and specifically deny that any sum or sums whatsoever
27 are due and owing from SURETY to Plaintiff; or that Plaintiff is entitled to any damages or relief
28 whatsoever.
I
DEFENDANT AMERICAN CONTRACTOR INDEMMTY COMPANY'S ANSWER TO COMPLAINI
AFFIRMATIVE DEFENSES
2 As separate and additional affirmative defenses to the Complaint and each purported cause of
~
3 action alleged against SURFTY contained therein, SURETY alleges the following additional affirmative
4 defenses. In asserting these defenses, SURETY does noi assume the burden of proof as to matters that,
5 under the law, are the Plaintiff's burden to prove.
FIRST AFFIRMATIVE DEFENSE
7 The allegations of the pleading do not state facts sufficient to constitute a cause of action against
8 this SURETY.
9 SECOND AFFIRMATIVE DEFENSE
10 Plaintiff is hereby placed on notice, in accordance with Civil Code ) 2845, that he must proceed
11 against the principal debtor and pursue any other remedy in their power which this SURETY cannot itself
12 pursue so as to lighten its burden and failure to pursue said remedies may relieve SURETY of any
13 obligation as surety. In making this affimiative defense, SURETY does not admit, and in fact denies any
14 liability in the main action.
15 THIRD AFFIRMATIVE DEFENSE
16 SURETY is informed and believes and thereon alleges thai its principal has or may have defenses
17 to the claims of Plaintiff not presently known to SURETY, and which inure to the benefit of SURETY,
18 and this answering SURETY prays leave to amend this answer to assert such defenses when the same
19 shall have been ascertained.
20 FOIIRTH AFFIRMATIVE DEFENSE
21 The contractor's license bonds issued by SURETY, are not cash, performance or labor and
22 material bonds, nor are the bonds in any way an insurance policy. Any recovery against said Contractor's
23 License I3onds is conditioned on a proven violation of the Contractor's License Law. Furthermore, such
24 recovery is limited to the penal sum of the bonds.
25 FIFTH AFFIRMATIVE DEFENSE
26 A contractor's license bond covers only those acts of the bond principal/licensee that are
27 within the scope of the licensed business, fo the extent Plaintiff seeks recovery from SURETY outside
28 this scope, the claim is barred and Plaintiff s recovery is limited.
2
DEFENDANT AMERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO COMPLAINT
2 The liability of SURETY, if any, is limited in the aggregate to the penal sum ol'ts bonds,
3 irrespective of the number of claims brought against said bonds. Any such liability isreducible from its
4 maximum penal sum by payments made in good I'aith toany other claimants who have, or who will bring,
5 claims or lawsuits against the contractor's license bonds issued by SURETY.
SEVENTH AFFIRMATIVE DEFENSE
7 Competing claims may reduce the bonds or may disallow certain claimants owing to the
8 existence o 1preferred claims.
10 Plaintiff s Complaint, and each cause of action thereof, is barred by the applicable statute of
11 limitations, California Code of Civil Procedure I'1335-349.4, including but not limited to California
12 Business 4 Professions Code I'17071.11, California Code of Civil Procedure I'1337.1, 4337.15, I'1337(1),
13 I'1338,ll339 and FJ340, et seq.
NINTH AFFIRMATIVE DEFENSE
15 Pursuant to California law, on or about January 1, 2004, the penal sum of the bonds were
16 increased from $ 7,300 to $ 10,000. By operation of law on or about January 1, 2007, the penal sum of the
17 bonds were increased from $ 10,000 to $ 12,500. By operation of law on or about January 1, 2016, the
18 penal sum of the bonds were increased from $ 12,500 to $ 15,000. These increases, however, are only for
19 the benetit of homeowner claimants. As to all other claimants, the maximum penal sum of the bond is
20 $ 7,500.
21 TENTH AFFIRMATIVE DEFENSE
22 SURETY is informed and believes and thereon alleges that the claims of the plaintiffs against
23 SURETY's bond are barred by the provisions of the Business and Professions Code II7044.
24 KLEVENTHAFFIRMATIVE DEFENSE
25 A contractor's bond, pursuant to its terms, is only effective and covers only those acts that occur
26 while the contractor's license for which itwas issued is active and only covers claims that fall within the
27 effective dates of the bonds and license.
28 ///
3
DEFENDANT AMERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO COMPLAINT
1 TVI'ELFTH AFFIRMATIVE DEFENSE
2 The Complaint is barred, in whole or in part, to the extent that Plaintiff fails to establish any or all
3 of their causes of action against SURETY's principal. Cal. Civ. Code Sections 2809, 2810, 2819; Sc/imlrr
v. /ns Co. of V/. Am., 230 Cal. App. 3d 245, 257-58 (1991)n In that regard, SURETY adopts and
5 incorporates herein by reference any affirmative defenses asserted by its principal.
7 Any act of the Plaintiff constituting an alteration of its original relationship with SURETY's
8 principal without notice to SURE'I'Y would serve to exonerate SURETY under CaIifornia Civil
9 Code II2819.
10 FOURTEENTH AFFIRMATIVE DEFENSE
ll The liability of SURFTY, if any, on the contractor's bond issued to its bond principal/licensee is
12 secondary to the liability of the performance bond or payment bond issued by another surety to the same
13 principal/licensee.
14 FIFTEENTH AFFIRMATIVE DEFENSE
15 SURETY is informed and believes, and on that basis alleges, that Plaintif1's claims are barred by
16 the doctrines of laches and unclean hands.
17 SIXTEENTH AFFIRMATIVE DEFENSE
18 SURETY is informed and believes, and on that basis alleges, that Plaintiffs claims should be
19 limited because Plaintiff failed to mitigate its damages.
20 SKVENTKFNTH AFFIRMATIVE DEFENSE
21 SURETY is informed and believes, and on that basis alleges, that Plaintiff s claims are not the
22 fault of SURETY and/or its principal, but the fault of others, including, but not limited to, Plaintiffs
23 agents, officers, directors and employees.
24 EIGHTEENTH AFFIRMATIVE DEFENSE
25 SURETY is informed and believes, and on that basis alleges, that any damages allegedly suffered
26 by Plaintiff were caused or contributed by others and SURETY is entitled to comparative contribution
27 based upon the percentage of fault of others, including Plaintiff.
4
DEFENDANI'MERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO COMPLAINT
ININTEKNTH AFFIRMATIVE DEFENSE
2f SURETY is informed and believes, and on that basis alleges, that Plaintil'f received satisfaction
3 and released of'all of its claims and damages, if any, against the SURETY and its principal.
f
4 TWENTIE'TH AFFIRMATIVE DEFENSE
5 Plaintiffs claims are barred, in whole or in part, by the doctrine of'estoppel.
TWENTY-FIRST AFFIRMATIVE DEFENSE
7 Plaintiff s claims are barred, in whole or in part, by the doctrine of waiver.
TWFNTY-SECOND AFFIRMATIVE DEFENSE
9 The Complaint is barred, in whole or in part, because Plaintiff expressly or impliedly consented
10 to, approved, or ratified the alleged conduct which forms the basis of Plaintiff s claim.
TWENTY-THIRD AFFIRMATIVE DEFENSE
12 The acts and/or omissions, if any„of SURETY and/or its principal were not the proximate cause
13 of the losses, damage or injuries alleged in the Complaint.
TWENTY-FOURTH AFFIRMATIVE DEFENSE
15 The Complaint is barred, in whole or in part, because SURETY's principal has appropriately,
16 completely, and fully performed and discharged any and all obligations and legal duties arising out of the
17 matters alleged in the Complaint.
18 TWENTY-FIFTH AFFIRMATIVE DEFENSE
19 If Plaintiff suffered any damages, which is denied, then any such damage was proximately caused
20 by the intervening and superseding actions of others.,which bars Plaintiff's recovery, if any, against
21 SURETY.
22 ADDITIONAI. AFFIRMATIVE DEFENSES
23 SURETY has not knowingly or intentionally waived any applicable affirmative defenses and
24 reserves the right to assert and rely on such other applicable affirmative defenses as may later become
25 available or apparent. SURETY is informed and believes and thereon alleges that its principal has or may
26 have defenses to the claims of Plaintiff not presently known to SURETY, and which inure to the benefit
27 of SURETY, and SURETY prays leave to amend this answer to assert such defenses when the same shall
28
5
DEFENDANT AMERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO COMPLAINT
have been ascertained. SURETY further reserves the right to amend this Answer and/or affirmative
defenses accordingly.
WHEREFORE, SURETY prays as follows:
1. That Plaintiff take nothing by reason ofhis Complaint;
2. That judgment be entered for SURETY;
3. That SURETY be awarded its costs of suit and attorneys'ees herein; and
4. That the court order such other and further relief as it deems appropriate.
9
Dated: /0 —
7 /0 FERBER LAW, A Professional Corporation
10
12
13
., Lw
Micfelle R. Ferliert
Connor M. Day
Attorneys for Defendant
14 American Contractors Indemnitv Comnanv
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6
DEFENDANT AMERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO COMPLAINT
PROOF OF SERVICE
I declare that I am over the age of 18 and not a party to the within-entitled action. I am employed
at Ferber Law, A Professional Corporation, and my business address is 2603 Camino Ramon, Suite 385,
San Ramon, California 94583.
On October 8, 2019, I served the within document(s):
DEFENDANT AMERICAN CONTRACTOR INDEMNITY COMPANY'S ANSWER TO
COMPLAINT
(X) VIA MAIL by placing a true copy in a sealed envelope with postage thereon fully prepaid in the
United States Mail at San Ramon, California addressed as shown below. I am readily familiar
with this firm's business practice for collection and processing of correspondence for mailing
with the United States Postal Service. I caused such sealed envelope with postage thereon fully
prepaid to be placed in the United States mail the same day as this declaration at San Ramon,
California, in the ordinary course of business. I am aware that on motion of party served, service
10 is presuined invalid if postal cancellation date or postage meter date is more than one day after the
date of deposit for mailing in affidavit.
11
VIA ELECTRONIC TRANSMISSION — I transmitted a PDF version of this document by
12 electronic mail to the parties identified below using the email addresses indicated.
13 VIA FACSIMILE by transmitting the document(s) listed above to the fax number(s) set forth
below on this date before 5:00 p.m.
14
VIA OVERNIGHT DELIVERY by placing the documents listed above in a sealed envelope, in
15 a box regularly maintained by United Parcel Service, with delivery fees paid, at San Ramon,
California addressed as set forth below.
16
VIA HAND DELIVERY by personally delivering the document(s) listed above to the person(s)
17 at the address(es) set forth below.
18
J. Edward Kerley, Esq.
Dylan L. Schaffer, Esq.
19
Yasmeen Omidi, Esq.
Kerley Schaffer LLP
20
1939 Harrison Street, ¹500
Oakland, CA 94612
21
Executed on October 8, 2019, at San Ramon, California.
I declare under penalty of perjury that the foregoing is true and correct.
23
24
25
Oe ~I'=
Christine Pierce
26
27
28