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1 WAKEFIELD & ASSOCIATES
James R. Wakefield, P.C. (Bar No. 102024)
2 E-mail: jim.wakefield@wakefieldlawyers.com
2030 Main Street, Suite 1300
3 Irvine, CA 92614
Telephone: (949) 649-1180
4
Attorneys for Plaintiff MATRIX
5 SURFACES, INC.
6
7
8 SUPERIOR COURT OF CALIFORNIA
9 COUNTY OF LOS ANGELES, CENTRAL DISTRICT
10
11 MATRIX SURFACES, INC., a California ) CASE NO.:
corporation; )
12 ) COMPLAINT:
Plaintiff, ) 1. FORECLOSURE OF MECHANICS
13 ) LIEN;
vs. ) 2. BREACH OF WRITTEN
14 ) CONTRACT;
FLOOR SYSTEMS, INC., a California ) 3. SERVICES RENDERED;
15 corporation; ) 4. ACCOUNT STATED;
DOUGLAS 10, LLC, a California Limited ) 5. OPEN BOOK ACCOUNT;
16 Liability Company; ) 6. REASONABLE VALUE; AND
P. JOSEPH DEVELOPMENT, a California ) 7. CONTRACTOR'S STATE LICENSE
17 corporation; ) BOND
AMERIAN CONTRACTORS INDEMNITY )
18 COMPANY, a California corporation; and ) Unlimited Jurisdiction
DOES 1 through 15, inclusive, )
19 )
Defendants. )
20 )
21
Plaintiff alleges:
22
1. Plaintiff, MATRIX SURFACES, INC. is, and at all times herein mentioned was,
23
a California licensed contractor and California corporation duly organized and existing by
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virtue under the laws of the State of California and doing business in said State (hereinafter
25
"Plaintiff”).
26
2. Plaintiff is informed and believes, and on that ground alleges, that Defendant
27
FLOOR SYSTEMS, INC. is, and at all times herein mentioned was, a California corporation
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B062.1
1 duly organized and existing by virtue under the laws of the State of California (hereinafter
2 “FSI”).
3 3. Plaintiff is informed and believes, and on that ground alleges, that Defendant
4 DOUGLAS 10, LLC is, and at all times herein mentioned was, a California Limited Liability
5 Company organized and existing by virtue under the laws of the State of California
6 (hereinafter “DOUGLAS”).
7 4. Plaintiff is informed and believes, and on that ground alleges, that Defendant P.
8 JOSEPH DEVELOPMENT is, and at all times herein mentioned was, a California corporation
9 duly organized and existing by virtue under the laws of the State of California (hereinafter
10 “PJD”).
11 5. Plaintiff is informed and believes, and on that ground alleges, that Defendant
12 AMERICAN CONTRACTORS INDEMNITY COMPANY is, and at all times herein
13 mentioned was, a California corporation organized and existing under the laws of the State of
14 California (hereinafter “ACIC”).
15 6. Defendants DOES 1 through 15, inclusive, are sued herein under fictitious names
16 since their true names and capacities are unknown to Plaintiff. When the true names and
17 capacities have been ascertained, Plaintiff will amend this Complaint to state the same.
18 Plaintiff is informed and believes and thereon alleges that each of the fictitiously named
19 Defendants claims an estate or interest in the property herein mentioned.
20 7. Plaintiff is informed and believes and thereon alleges that at all times mentioned
21 herein Defendants and DOES 1 through 15 were acting as the agent and/or employee of each
22 remaining Defendant, and acting within the course and scope of said agency and/or
23 employment, and that each of the fictitiously named Defendants is responsible in some manner
24 for the occurrences herein alleged and that Plaintiff's damages, as herein alleged, were
25 proximately caused by such Defendants, and each of them.
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B062.1
1 FIRST CAUSE OF ACTION
2 (Foreclosure of Mechanic's Lien)
3 (Against Defendants FSI, DOUGLAS, PJD, and DOES 1 through 5)
4 8. Plaintiff realleges Paragraphs 1 through 7, inclusive, and incorporates said
5 paragraphs herein by reference as though set forth in full.
6 9. At all times mentioned, Defendants DOUGLAS, PJD and DOES 1 through 5
7 were the owners or reputed owners of certain real property located in the City of Los Angeles,
8 County of Los Angeles, described as Douglas 10, LLC, 1316 & 1322 Douglas Street, Los
9 Angeles, California 90028. .
10 10. Within the last four years, Plaintiff entered into a written agreement with
11 Defendant FSI, whereby Plaintiff agreed to and did furnish to FSI certain labor and materials
12 for granite and tile installation (“project work”) and Defendants agreed to pay for the same.
13 The project work was intended to be and was actually used or consumed in connection with the
14 above-mentioned work of improvement on the real properties. A true and correct copy of the
15 parties’ agreement is attached hereto as Exhibit "A" and incorporated herein by reference.
16 11. Plaintiff has fully performed all of the terms and conditions on its part to be
17 performed pursuant to the agreement with Defendant FSI, except for those obligations, if any,
18 excused by Defendant FSI’s breach.
19 12. Although demand has been made, Defendant FSI has failed, neglected, and
20 refused to pay to Plaintiff the amounts due as a result of Defendant FSI’s breach of the parties'
21 agreement.
22 13. As a result of Defendant FSI’s breach of the agreement, Plaintiff has suffered
23 damages in the sum of $212,584.00, together with interest thereon at the highest legal rate per
24 annum from January 31, 2024, plus reasonable attorney's fees and costs.
25 14. Plaintiff is informed and believes and thereon alleges that the whole of the land
26 hereinabove described, upon which the work of improvement is located, is necessary and
27 required for the convenient use and occupation of the work of improvement.
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B062.1
1 15. Prior to first furnishing to Defendants said project work, Plaintiff served upon
2 Defendants FSI, DOUGLAS, PJD and DOES l through 5, a written Preliminary Notice stating
3 with substantial accuracy a general description of the project work to be furnished and the
4 name of the party to whom same were furnished. A true and correct copy of said Preliminary
5 Notice is attached hereto as Exhibit "B" and incorporated herein by reference.
6 16. On or about March 22, 2024, Plaintiff filed and recorded a claim of lien in the
7 official records of Los Angeles County, California, Instrument No.20240190081 claiming a
8 lien on the property described therein, and containing a statement of Plaintiff's demand, after
9 deducting all credits and offsets, and the names of owners or reputed owners of the property,
10 the names of persons with whom Plaintiff contracted to perform certain improvements and
11 furnish the project work, together with a general description of the project work and items
12 furnished, and a description of the property sought to be charged with the lien. A true and
13 correct copy of said lien is attached hereto as Exhibit "C" and is incorporated herein by this
14 reference. The lien charges the above-mentioned property with Plaintiff's above-mentioned
15 claim.
16 17. Defendants DOUGLAS and DOES 1 through 5, inclusive, have or claim to have
17 some estate, lien, right, title or interest in or upon the premises or some part thereof, which the
18 claim and claims and all such claims or liens are subject, subsequent and subordinate to the lien
19 of the Plaintiff.
20 SECOND CAUSE OF ACTION
21 (For Breach of Written Contract)
22 (Against Defendants FSI and DOES 6 through 10)
23 18. Plaintiff realleges Paragraphs 1 through 17, inclusive, and incorporates said
24 paragraphs herein by reference as though set forth in full.
25 19. Within the last four years, Plaintiff entered into a written agreement with
26 Defendants FSI and DOES 6 through 10, whereby Plaintiff agreed to and did furnish to
27 Defendants certain project work and Defendants agreed to pay for same.
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B062.1
1 20. Plaintiff has fully performed all of the terms and conditions on its part to be
2 performed pursuant to the agreement, except for those obligations, if any, excused by
3 Defendants' breach. A copy of the parties’ agreement is attached hereto as Exhibit "A" and
4 incorporated herein by reference.
5 21. Although demand has been made, Defendants have failed, neglected and refused
6 to pay to Plaintiff any of the amounts due, in breach of the parties' agreement.
7 22. As a result of Defendants' breach of the agreement, Plaintiff has been damaged
8 in the sum of $212,584.00, together with interest thereon at the highest legal rate per annum
9 from January 31, 2024, plus reasonable attorneys' fees and costs.
10 THIRD CAUSE OF ACTION
11 (Services Rendered)
12 (Against Defendants FSI and DOES 6 through 10)
13 23. Plaintiff realleges Paragraphs 1 through 22, inclusive, and incorporates said
14 paragraphs herein by reference as though set forth in full.
15 24. Within the last two years, Defendants FSI and DOES 6 through 10 became
16 indebted to Plaintiff in the sum of $212,584.00 for certain project work furnished by Plaintiff to
17 Defendants at the special instance and request of Defendants, for which Defendants agreed to
18 pay Plaintiff the above sum.
19 25. Notwithstanding Plaintiff's demand, no part of the above sum has been paid, and
20 there is now due, owing and unpaid from Defendants to Plaintiff the sum of $212,584.00, plus
21 interest thereon at the highest legal rate per annum from January 31, 2024, plus reasonable
22 attorneys' fees and costs.
23 FOURTH CAUSE OF ACTION
24 (Account Stated)
25 (Against Defendants FSI and DOES 6 through 10)
26 26. Plaintiff realleges Paragraphs 1 through 25, inclusive, and incorporates said
27 paragraphs herein by reference as though set forth in full.
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B062.1
1 27. Within the last two years, an account was stated in writing by and between
2 Plaintiff and Defendants FSI and DOES 6 through 10, wherein it was agreed that the
3 Defendants were indebted to Plaintiff in the sum of $212,584.00 for certain project work, plus
4 interest thereon at the highest legal rate per annum from January 31, 2024, plus reasonable
5 attorneys' fees and costs.
6 28. Although demanded by Plaintiff from Defendants, neither all nor any part of the
7 agreed balance has been paid and the same is now due, owing and unpaid from Defendants to
8 Plaintiff. A copy of Plaintiff’s Accounting Report is attached hereto as Exhibit “D” and
9 incorporated herein by reference.
10 FIFTH CAUSE OF ACTION
11 (Open Book Account)
12 (Against Defendants FSI and DOES 6 through 10)
13 29.. Plaintiff realleges Paragraphs 1 through 28, inclusive, and incorporates said
14 paragraphs herein by reference as though set forth in full.
15 30. Within the last two years, Defendants became indebted to Plaintiff on an open
16 book account for money due in the sum of $212,584.00 for certain project work furnished by
17 Plaintiff to Defendants at the special instance and request of Defendants for which Defendants
18 agreed to pay Plaintiff the above sum plus interest thereon at the highest legal rate per annum
19 from January 31, 2024, plus reasonable attorneys' fees and costs.
20 31. Although demand has been made, neither the whole, nor any part of the above
21 sum has been paid, and there is now due, owing and unpaid from Defendants to Plaintiff the
22 sum of $212,584.00, together with interest thereon at the highest legal rate per annum from
23 January 31, 2024, plus reasonable attorneys' fees and costs.
24 SIXTH CAUSE OF ACTION
25 (For Reasonable Value)
26 (Against Defendants FSI and DOES 6 through 10)
27 32. Plaintiff realleges Paragraphs 1 through 31, inclusive, and incorporates said
28 paragraphs herein by reference as though set forth in full.
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B062.1
1 33. Within two years last past, Defendants FSI and DOES 6 through 10, inclusive,
2 became indebted to Plaintiff in the sum of $212,584.00 for certain project work furnished by
3 Plaintiff for said Defendants at the special instance and request of Defendants. The agreed and
4 reasonable value of said project work was and is the sum of $212,584.00, together with interest
5 thereon at the highest legal rate per annum from January 31, 2024. No part of said sum has
6 been paid, although demand therefore has been and is hereby made, and there is now due,
7 owing and unpaid the balance of $212,584.00, together with interest thereon at the highest legal
8 rate per annum from January 31, 2024, plus reasonable attorneys' fees and costs.
9 SEVENTH CAUSE OF ACTION
10 (On Contractor's License Bond)
11 (Against Defendants ACIC and DOES 11 through 15)
12 34. Plaintiff realleges Paragraphs 1 through 33, inclusive, and incorporates said
13 paragraphs herein by reference as though set forth in full.
14 35. FSI was, at all times relevant to this Complaint, a corporation, licensed as a
15 contractor, Number 503247 under the laws of the State of California.
16 36. The Defendant ACIC was, at all times in this Complaint mentioned, and is now a
17 corporation doing business under the laws of the State of California and authorized to transact
18 business as surety upon bonds or undertakings in the State of California.
19 37. On or before December 24, 1986, FSI applied to the Registrar of Contractors of
20 the Contractors State License Board of the Department of Professional and Vocational
21 Standards of the State of California for a contractor’s license or renewal thereof in accordance
22 with the provisions of Section 7071.6 of the Business and Professions Code of the State of
23 California. FSI filed with the registrar a bond, Number SC221192, dated January 1, 2023,
24 issued by the Defendant ACIC in the sum of $25,000.00 conditioned upon FSI’s compliance
25 with all of the provisions of Division 3, Chapter 9 of the Business and Professions Code of the
26 State of California, and inuring to the benefit of any person damaged as a result of a violation
27 of the chapter by the Defendant licensee. A copy of the bond is in the possession of Registrar
28 and ACIC.
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B062.1
1 38. Plaintiff is informed and believes and thereon alleges that the project work
2 furnished to FSI was used by FSI in connection with certain projects performed by FSI in the
3 City of Los Angeles, California. FSI failed to comply with the provisions of Division 3,
4 Chapter 9 of the Business and Professions Code in that FSI diverted funds received for the
5 completion of the construction project and/or failed to substantially account for the application
6 or use of the funds and failed to pay for the project work provided by Plaintiff in violation of
7 the provisions of Section 7108 and 7120 of the Business and Professions Code.
8 39. As a result thereof, Plaintiff has been damaged in the amount of $212,584.00
9 plus interest at the highest legal rate per annum from January 31, 2024, plus reasonable
10 attorney's fees and costs.
11 WHEREFORE, Plaintiff prays for judgment as follows:
12 As to the First Cause of Action against Defendants FSI, DOUGLAS, PJD and DOES 1
13 through 5, jointly and severally:
14 1. For the sum of $212,584.00 or according to proof;
15 2. For interest incurred thereon from January 31, 2024, at the highest legal rate per
16 annum;
17 3. That said amounts be adjudged to be a lien on the work of improvement and all
18 land described in this Complaint; that said land be adjudged and decreed to be sold according
19 to law, that the proceeds of the sale be applied to satisfy costs of the sale and of these
20 proceedings and Plaintiff's claim, as aforesaid; that the interests of all of the Defendants and all
21 persons claiming under them, in and to said land be adjudged and decreed subsequent and
22 subject to Plaintiff's liens, whether said Defendants are lien claimants, judgment creditors,
23 purchasers, encumbrances, or otherwise; that each of said Defendants be barred and foreclosed
24 from all rights, claims, interests or equity of redemption in the property and every part of the
25 property when time for redemption has passed; that Plaintiff may become a purchaser at such
26 sale; that if there is a deficiency of proceeds to satisfy the amounts due to Plaintiff, judgment
27 for the deficiency be entered against Defendants; and
28 4. For such other and further relief as the Court deems just and proper.
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B062.1
1 As to the Second through the Sixth Causes of Action against Defendants FSI and DOES
2 6 through 10, jointly and severally:
3 1. For the sum of $212,584.00 or according to proof;
4 2. For interest thereon from January 31, 2024, at the highest legal rate per annum;
5 3. For reasonable attorneys' fees and costs; and
6 4. For such other and further relief as the Court deems just and proper.
7 As to the Seventh Cause of Action against Defendants ACIC and DOES 11 through 15,
8 jointly and severally:
9 1. For the sum of $7,500.00;
10 2. For interest thereon from January 31, 2024, at the highest legal rate per annum;
11 3. For reasonable attorneys' fees and costs; and
12 4. For such other and further relief as the Court deems just and proper.
13 Dated: June 18, 2024 WAKEFIELD & ASSOCIATES, P.C.
14
15 By:
James R. Wakefield, P.C.
16 Attorneys for Plaintiff
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B062.1
EXHIBIT “A”
SUBCONTRACT AGREEMENT 08/17/2023
AGREEMENT WITH INDEPENDENT CONTRACTOR
This agreement is made between FLOOR SYSTEMS INC. (SIGNATURE) and Matrix Surfaces Inc
independent Contractor (Contractor) at
Orange, California for the performance of certain tasks.
Contractor represents and warrants that Contractor is engaged in an independent business and has complied with
all federal, state and local laws regarding business permits and licenses of any kind that may be required to carry
out, said to maintain such compliance throughout the duration of this agreement. Contractor is or may be engaged
in the same or similar activities for other clients, and that FLOOR SYSTEMS INC. isnot necessarily the sole and
only client or customer.
THEREFOREIN CONSIDERATION OF THE FOREGO ING REPRESENTATIONS AND THE FOLLO WING TERMS AND
CONDITIONS, THE PARTIES AG REE AS FOLLOWS:
1. SERVICES TO BE PERFORMED: FLOOR SYSTEMS INC. engages Contractor to install Carpet Tile, Carpet,
padding, wood floors, ceramic tile floors or vinyl floors at various locations. MODIFY AS NEEDED
2. TERMS OF PAYMENT: FLOOR SYSTEMS INC. shall pay Contractor weekly after submission of approved invoices.
All invoicing must be submitted no later than 30 days after completion of work.
3. ENTIRE AGREEMENT: This Agreement represents the entire agreement between Floor Systems Inc. and
Contractor and supersedes any prior written or oral representations. Contractor and his subcontractors are
bound by
Floor Systems Inc. and any other documents incorporated therein insofar as they relate in any way, directly or
indirectly to the work covered by this Agreement.
4. TIM E: Time is of the essence of this Agreement. Contractor shall provide Floor Systems Inc. with scheduling
information in a form acceptable to Floor Systems Inc. and shall conform to Floor Systems Inc.'s
progress
schedules, including any change made by Floor Systems Inc. in the scheduling of work, Contractor
shall coordinate
its work with that of all other contractors, subcontractors and suppliers So as not to delay their
performance.
5. CHANGES IN WORK: Contractor shall make no changes in the work covered by this Agreement
without written
direction from Floor Systems Inc. Contractor shall not be compensated for any change
which is made without
such written direction. No changes in the work covered by this Agreement shall exonerate
any surety or any
bond given in connection with this Agreement.
6. CLAIMS: If any dispute shall arise between Floor Systems Inc. and Contractor regarding performanc
e of the
work or any alleged change in the work, Contractor shall timely perform the disputed work
and shall give written
notice of a claim for additional compensation for the work within ten (10) days after
commencement of the
disputed work. Contractor's failure to give written notice within the ten (10) day period constitutes
an agreement
by Contractor that it will receive no extra compensation for the disputed work.
7. INSPECTION AND PROTECTION OF WORK: Co n tract or shall make the work accessible
at all reasonable times
for inspection by Floor Systems Inc. Contractor shail, at the first opportunity inspect all material
and equipment
delivered to the jobsite by others to be used or incorporate in the Contractor's work and
give prompt notice of any
defect therein. Contractor assumes full responsibility to protect the work done hereunder until final
accep table
Owner and Floor Systems Inc.
8. LABOR RELATIONS: Contractor shall maintain labor relations policies in conformity with the direction
of Floor
Systems Inc. and shall comply with those labor agreements applicable to the
work performed under this Agreement,
to the extent required by Floor Systems inc.
9. TERMINATION: (!) Should Contrator fail to rectify any contractual deficiencies, including failure to pay its credi
tors, within three (3 ) working days from receipts of Floor Systems Inc.'s written notice, Floor Systems Inc. shall
have the right to take whatever steps it deems necessary to correct said deficiencies and charge the cost
thereof to Contractor, who shall be liable for the full cost of Floor Systems Inc.'s corrective action, including
reasonable overhead, profit and attorney's fees. (11) Floor Systems Inc. may at any time and for any reason
terminate Contractor's services hereunder at Floor Systems Inc.'s convenienc
e; in the event of termination for 9 p
convenience. Contractor shall recover only the actual cost of work completed to the date of termination plus
fifteen percent (15%) of the actual cost of the work for overhead and profit. Contractor shall not be entitled to any
claim or lien against Floor Systems inc. or Owner for any additional compensation or damages in the event of
such termination.
10. INDEMNIFICATION: To the fullest extent permitted by law, Contractor shall indemnify and hold harmless Owner and
Floor Systems Inc. and their agents and employees from claims, demands, cause of actions and liabilities of every
kind and nature whatsoever arising out or in connection with Contactor's operations performed under this
Agreement. The indemnity shall apply regardless of any active and/or passive negligent act or omission of Owner or
Floor Systems Inc., or their agents or employees, but Contractor shall not be obligated to indemnify any party for
claims arising from sole negligence or willful misconduct of Owner or Floor Systems Inc. or their agents or employees
or caused Solely by the designs provided by such parties. Theindemnity set forthin this Section shall not be limited to
insurance requirements or by any other provision of this Agreement. All work covered by this Agreement done at the
site or in preparing or delivering materials or equipment to the site shall be at the sole risk of Contractor until
completed work is accepted by Floor Systems Inc.
11. INSURANC E: Contractor shall, at its expense, procure and maintain insurance on allits operations, with carriers
acceptable to Floor Systems Inc., and amounts acceptable to Floor Systems Inc. and as required by the prime
contract including the following coverage's:
a. Workers’ Compensation as Required by Law
b. Employers Liability insurance with minimum limits of $1,.000,000/$1 ,000,000/$1,000,000:
c. Comprehensive General Liability- Minimum Limit $1,000,000 Per Occurrence
d. Automobile Liability insurance- Minimum Limit $1,000,000 Combined Single Limit,
including coverage for all owned, hired and non-owned automobiles.
Ail insurance shall be in amounts and durations acceptable to Floor Systems Inc. and as required by the prime contract.
Contractor shall name Floor Systems Inc. as additional insured under the Genera | Liability policy for both ongoing and
completed operations. Sub Contractor's Insurance shall be primary to and not seek contribution from any other insurance
available to Floor Systems inc. and provide both a General Liability and Workers Compensation Waiver of Subrogation
endorsement in favor of Floor Systems Inc. Contractor shall provide certificates of insurance to Floor Systems Inc. The
certificates of insurance shall provide that there will be no cancellation nor reduction of coverage
without thirly (30) days
prior to written notice to Signature. The failure of Floor Systems Inc. to enforce in a timely manner any of
these provisions
- Section 11 shall not act as a waiver to enforcement of any of these provisions at a later date in the performance
of this
greement.
12. CLAIMS RESOLUTION: Any claims resolution procedure incorporated in the prime contract shall
be deemed
incorporated in this Agreement. and shall apply to disputes arising hereunder In the absence of a claims
resolution
procedure in the prime contract, the parties hereto shall not be obligated to utilize arbitration or any non-
judicial
method of dispute resolution proceeding between the parties to this Subcontract, the pre vailing party
shall be
entitled to recover attorneys’ fees.
13. WA RRANTY: Contractor warrants to Owner, Architect and Floor Systems Inc. that all materials and equipment
furnished shall be new, free from faults and defects and of good quality. Contractor hereby warrants its work
against
all deficiencies and defects for the period required by the prime contract, or the longest period permitted
by the law
of this State, whichever is less.
14. ATTORNEYS' FEES: In the event the partied become involved in litigation or arbitration with each other
arising out of
this Agreement or other performance in which the services of an attorney or other expert are reasonably
required,
the prevailing party shall be fully compensated for the cost of its participation in such proceedings
, including
the cost
incurred for attorneys’ fees and experts’ fees. Unless judgement goes by default, the attorneys’ fees
award shall not
be computed in accordance with any court schedule, but shall be such as to fully reimburse
all attorneys’ actually
incurred in good faith, regardless of the size ofa judgment, it being the intention of
the parties to fully compensate
for all attorneys’ fees and experts’ p aid or incurred in good faith. In the case of a dispute
under the prime contract
dispute resolution provisions, Contractor shall be entitled to such attorneys’ fees and
other costs as may be
provided for under the prime contract.
GP
15. SPECIALPROVISIONS:
CONTRACTORS AREREQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD.
ANY QUESTIONS CONC ERNING ACONTRACTOR MAY BEREFERRED TOTHEREGISTRAT OF THE BOARD WHOSEADDRESS |S:
Contractors State License Board
3132 Bradshaw Road
Post Office Box 26000
Sacramento, California 95826
FLOOR SYSTEMS INC.
Authorized Signature
independent Contractor
Matrix Surfaces Inc 790435
Name of Contractor California State Contractor's License #
aha fash, 33-0943467
uthorized Signature Social Security # or Fed era! Tax ID#
DP
EXHIBIT “B”
CRM SERVED NOTICES BY ACCOUNT
Prepared For: Jerry E Jones MATR. RFAC INC.
CRM Document Number Statement: 01/31/2024
24011552
DOUGLAS 10-£01
ssteae0 PRELIMINARY NOTICE - PRI
THIS NOTICE IS GIVEN PURSUANT TO CALIFORNIA VATE WORK 24011552
CIVIL CODE § 8034(a), 8102, 8106-8 1 18, 8200 ET SEQ.
FOR A COPY OF ANY PAYMENT BOND.REFLECT
WHIGH WAY SE THeISGted ar eee ECTION
THIS IS NOTA UEN AND THIS IS NOTA
CONTRACTOR 0A suBcOR
ONY, MTOT Se
TO OTe THIS eee WEMEOBE 16RT TICE ALSO
be SENT
Seo
Ss
WORK oF IMPROVEMENT,
ML SLOOM VIA FAX REPRE SENTS
& FORMAL
OF EMALAEQUEST
10: 714-578-0844 TeTO
YOU ARE HEREBY NOTIFIED THAT: (NAME AND ADORESS OF
THE NAME AND ADDRESS OF ANY LENDER MATRIX SURFACES, INC, CLAIMANT)
OR REPUTED LENDER
(EK 24011552 5449 E. LA PALMA AVE.
7021 6350 0002 0337 4932 ANAHEIM, CA 92807
., US BANK NATIONAL ASSOCIATION
“ DBA HOUSING CAPITAL COMPANY
3200 BRISTOL ST STE 800
COSTA MESA. CA 92626
RELATIONSHIP TO THE PARTIES OF THE ONE GIVING THIS
NOTICE:
SUBCONTRACTOR
HAS FURNISHEO OR WILL FURNISH LABOR, SERVICES
MATERIALS, OF THE FOLLOWING GENERAL DESCRIP , EQUIPMENT OF
TION:
GRANITE/STONE INSTALLATION
THE NAME AND ADDRESS OF THE OWNER OA REPUTED
7021 0350 0002 0337 3769 OWNER IS
24011552
*< DOUGLAS 10, LLC
4210 RIVERWALK PKWY
STE 270 THE 8U& DING, STRUCTURE OR IMPROVEMENT IS
LOCATED AT:
RIVERSIDE, CA 92505
DOUGLAS 10, LLC (TRACT #78277)
1316 DOUGLAS ST
LOS ANGELES, CA
THE NAME AND ADDRESS OF THE DRECT CONTRAC
TOR IS:
Fe 7021 0350 0002 0337 4049 24011552 THE NAME AND ADDRESS OF THE PERSON OR FIRM WHO CONTRACTE
SUCH LABOR, SERVICES, EQUIPMENT OR MATERIAL JS: D
P JOSEPH DEVELOPMENT
4210 RIVERWALK PKWY FSI DESIGN
5130 E HUNTER AVE
STE 270
RIVERSIDE, CA 92505 ANAHEIM, CA 92807
AN ESTIMATE OF THE TOTAL PRICE OF THE LABOR, SERVICES,
EQUIPMENT,
THE NAME AND ADDRESS OF THE SUBCONTRACTOR OA PERSONS OR MATERIALS FURNISHED OR TO BE FURNISHED IS:
OR FIRM WHO CONTRACTED SERVICES: 24011552 $360,000.00
om
EVEN no
TICE TO PROPERTY OWNER
FS! DESIGN HAVE PAID YOUR CONTRACTOR IN FULL, IF THE
PERSON OF FAM THAT HAS GIVEN YOU THIS NOTICE IS NOT PAID
5130 E HUNTER AVE FOR LABOR. SERVICE, EQUIPMENT, OR MATERIAL PROVIDED OR TO
IN FULL
BE
ANAHEIM, CA 92807 PROVIDED TO YOUR CONSTRUCTION PROJECT, A LIEN MAY BE PLACED ON
YOUR PROPERTY, FORECLOSURE OF THE LIEN MAY LEAD TO LOSS
OF ALL
OR PART OF YOUR PROPERTY. YOU MAY WISH TO PROTECT YOURSELF
AGAINST THIS BY (1) REQUIRING YOUR CONTRACTOR TO PROVIDE
A
SIGNED RELEASE BY THE PERSON OF FIAM THAT HAS GIVEN YOU THIS
NOTICE BEFORE MAKING ANY PAYMENT TO YOUR CONTRACTOR,
THE NAME AND ADDRESS OF ADDITKONAL ENTITIES DESIGNATE OR (2)
D ANY OTHER METHOD THAT IS APPROPRIATE UNOEA THE CIRCUMSTANCES.
SY THE OWNER TO RECEIVE A COPY OF THIS NOTICE:
24011552 THIS NOTICE IS REQUIRED BY LAW TO BE SERVED BY THE UNDERSIGNE
Ke D
AS A STATEMENT OF YOUR LEGAL RIGHTS. THIS NOTICE IS NOT INTENDED
TO REFLECT UPON THE FINANCIAL CONDITION OF THE CONTRACTOR
OR
THE PERSON EMPLOYED BY YOU ON THE CONSTRUCTION PROJECT.
iF YOU RECORD A NOTICE OF CESSATION OA COMPLETION OF
YOUR
CONSTRUCTION PROJECT, YOU MUST WITHIN 10 DAYS AFTER RECORDING,
SEND A COPY OF THE NOTICE OF COMPLETION TO YOUR CONTRACTOR
AND THE PERSON OR FIRM THAT HAS GIVEN YOU THIS NOTICE. THE
NOTICE MUST 8€ SENT BY REGISTERED OA CERTIFIED MAIL, FAILURE
TO
SENO THE NOTICE WEL EXTEND THE DEADLINE TO RECORD A CLAIM
24011552 OF
ics UEN. YOU ARE NOT REQUIRED TO SEND THE NOTI IF YOU
CEARE A
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PROOF OF SERVICE AFFIDAVIT
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ANO CORRECT. EXECUTED ON: JANUARY 31, 2024 aT Baca.
CALIFORNIA oS PS
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Prepared by: CRM Lien Services, Inc. » 3230 East imperial Highway « Suite
Preview
1 WAKEFIELD & ASSOCIATES James R. Wakefield, P.C. (Bar No. 102024) 2 E-mail: jim.wakefield@wakefieldlawyers.com 2030 Main Street, Suite 1300 3 Irvine, CA 92614 Telephone: (949) 649-1180 4 Attorneys for Plaintiff MATRIX 5 SURFACES, INC. 6 7 8 SUPERIOR COURT OF CALIFORNIA 9 COUNTY OF LOS ANGELES, CENTRAL DISTRICT 10 11 MATRIX SURFACES, INC., a California ) CASE NO.: corporation; ) 12 ) COMPLAINT: Plaintiff, ) 1. FORECLOSURE OF MECHANICS 13 ) LIEN; vs. ) 2. BREACH OF WRITTEN 14 ) CONTRACT; FLOOR SYSTEMS, INC., a California ) 3. SERVICES RENDERED; 15 corporation; ) 4. ACCOUNT STATED; DOUGLAS 10, LLC, a California Limited ) 5. OPEN BOOK ACCOUNT; 16 Liability Company; ) 6. REASONABLE VALUE; AND P. JOSEPH DEVELOPMENT, a California ) 7. CONTRACTOR'S STATE LICENSE 17 corporation; ) BOND AMERIAN CONTRACTORS INDEMNITY ) 18 COMPANY, a California corporation; and ) Unlimited Jurisdiction DOES 1 through 15, inclusive, ) 19 ) Defendants. ) 20 ) 21 Plaintiff alleges: 22 1. Plaintiff, MATRIX SURFACES, INC. is, and at all times herein mentioned was, 23 a California licensed contractor and California corporation duly organized and existing by 24 virtue under the laws of the State of California and doing business in said State (hereinafter 25 "Plaintiff”). 26 2. Plaintiff is informed and believes, and on that ground alleges, that Defendant 27 FLOOR SYSTEMS, INC. is, and at all times herein mentioned was, a California corporation 28 -1- B062.1 1 duly organized and existing by virtue under the laws of the State of California (hereinafter 2 “FSI”). 3 3. Plaintiff is informed and believes, and on that ground alleges, that Defendant 4 DOUGLAS 10, LLC is, and at all times herein mentioned was, a California Limited Liability 5 Company organized and existing by virtue under the laws of the State of California 6 (hereinafter “DOUGLAS”). 7 4. Plaintiff is informed and believes, and on that ground alleges, that Defendant P. 8 JOSEPH DEVELOPMENT is, and at all times herein mentioned was, a California corporation 9 duly organized and existing by virtue under the laws of the State of California (hereinafter 10 “PJD”). 11 5. Plaintiff is informed and believes, and on that ground alleges, that Defendant 12 AMERICAN CONTRACTORS INDEMNITY COMPANY is, and at all times herein 13 mentioned was, a California corporation organized and existing under the laws of the State of 14 California (hereinafter “ACIC”). 15 6. Defendants DOES 1 through 15, inclusive, are sued herein under fictitious names 16 since their true names and capacities are unknown to Plaintiff. When the true names and 17 capacities have been ascertained, Plaintiff will amend this Complaint to state the same. 18 Plaintiff is informed and believes and thereon alleges that each of the fictitiously named 19 Defendants claims an estate or interest in the property herein mentioned. 20 7. Plaintiff is informed and believes and thereon alleges that at all times mentioned 21 herein Defendants and DOES 1 through 15 were acting as the agent and/or employee of each 22 remaining Defendant, and acting within the course and scope of said agency and/or 23 employment, and that each of the fictitiously named Defendants is responsible in some manner 24 for the occurrences herein alleged and that Plaintiff's damages, as herein alleged, were 25 proximately caused by such Defendants, and each of them. 26 27 28 -2- B062.1 1 FIRST CAUSE OF ACTION 2 (Foreclosure of Mechanic's Lien) 3 (Against Defendants FSI, DOUGLAS, PJD, and DOES 1 through 5) 4 8. Plaintiff realleges Paragraphs 1 through 7, inclusive, and incorporates said 5 paragraphs herein by reference as though set forth in full. 6 9. At all times mentioned, Defendants DOUGLAS, PJD and DOES 1 through 5 7 were the owners or reputed owners of certain real property located in the City of Los Angeles, 8 County of Los Angeles, described as Douglas 10, LLC, 1316 & 1322 Douglas Street, Los 9 Angeles, California 90028. . 10 10. Within the last four years, Plaintiff entered into a written agreement with 11 Defendant FSI, whereby Plaintiff agreed to and did furnish to FSI certain labor and materials 12 for granite and tile installation (“project work”) and Defendants agreed to pay for the same. 13 The project work was intended to be and was actually used or consumed in connection with the 14 above-mentioned work of improvement on the real properties. A true and correct copy of the 15 parties’ agreement is attached hereto as Exhibit "A" and incorporated herein by reference. 16 11. Plaintiff has fully performed all of the terms and conditions on its part to be 17 performed pursuant to the agreement with Defendant FSI, except for those obligations, if any, 18 excused by Defendant FSI’s breach. 19 12. Although demand has been made, Defendant FSI has failed, neglected, and 20 refused to pay to Plaintiff the amounts due as a result of Defendant FSI’s breach of the parties' 21 agreement. 22 13. As a result of Defendant FSI’s breach of the agreement, Plaintiff has suffered 23 damages in the sum of $212,584.00, together with interest thereon at the highest legal rate per 24 annum from January 31, 2024, plus reasonable attorney's fees and costs. 25 14. Plaintiff is informed and believes and thereon alleges that the whole of the land 26 hereinabove described, upon which the work of improvement is located, is necessary and 27 required for the convenient use and occupation of the work of improvement. 28 -3- B062.1 1 15. Prior to first furnishing to Defendants said project work, Plaintiff served upon 2 Defendants FSI, DOUGLAS, PJD and DOES l through 5, a written Preliminary Notice stating 3 with substantial accuracy a general description of the project work to be furnished and the 4 name of the party to whom same were furnished. A true and correct copy of said Preliminary 5 Notice is attached hereto as Exhibit "B" and incorporated herein by reference. 6 16. On or about March 22, 2024, Plaintiff filed and recorded a claim of lien in the 7 official records of Los Angeles County, California, Instrument No.20240190081 claiming a 8 lien on the property described therein, and containing a statement of Plaintiff's demand, after 9 deducting all credits and offsets, and the names of owners or reputed owners of the property, 10 the names of persons with whom Plaintiff contracted to perform certain improvements and 11 furnish the project work, together with a general description of the project work and items 12 furnished, and a description of the property sought to be charged with the lien. A true and 13 correct copy of said lien is attached hereto as Exhibit "C" and is incorporated herein by this 14 reference. The lien charges the above-mentioned property with Plaintiff's above-mentioned 15 claim. 16 17. Defendants DOUGLAS and DOES 1 through 5, inclusive, have or claim to have 17 some estate, lien, right, title or interest in or upon the premises or some part thereof, which the 18 claim and claims and all such claims or liens are subject, subsequent and subordinate to the lien 19 of the Plaintiff. 20 SECOND CAUSE OF ACTION 21 (For Breach of Written Contract) 22 (Against Defendants FSI and DOES 6 through 10) 23 18. Plaintiff realleges Paragraphs 1 through 17, inclusive, and incorporates said 24 paragraphs herein by reference as though set forth in full. 25 19. Within the last four years, Plaintiff entered into a written agreement with 26 Defendants FSI and DOES 6 through 10, whereby Plaintiff agreed to and did furnish to 27 Defendants certain project work and Defendants agreed to pay for same. 28 -4- B062.1 1 20. Plaintiff has fully performed all of the terms and conditions on its part to be 2 performed pursuant to the agreement, except for those obligations, if any, excused by 3 Defendants' breach. A copy of the parties’ agreement is attached hereto as Exhibit "A" and 4 incorporated herein by reference. 5 21. Although demand has been made, Defendants have failed, neglected and refused 6 to pay to Plaintiff any of the amounts due, in breach of the parties' agreement. 7 22. As a result of Defendants' breach of the agreement, Plaintiff has been damaged 8 in the sum of $212,584.00, together with interest thereon at the highest legal rate per annum 9 from January 31, 2024, plus reasonable attorneys' fees and costs. 10 THIRD CAUSE OF ACTION 11 (Services Rendered) 12 (Against Defendants FSI and DOES 6 through 10) 13 23. Plaintiff realleges Paragraphs 1 through 22, inclusive, and incorporates said 14 paragraphs herein by reference as though set forth in full. 15 24. Within the last two years, Defendants FSI and DOES 6 through 10 became 16 indebted to Plaintiff in the sum of $212,584.00 for certain project work furnished by Plaintiff to 17 Defendants at the special instance and request of Defendants, for which Defendants agreed to 18 pay Plaintiff the above sum. 19 25. Notwithstanding Plaintiff's demand, no part of the above sum has been paid, and 20 there is now due, owing and unpaid from Defendants to Plaintiff the sum of $212,584.00, plus 21 interest thereon at the highest legal rate per annum from January 31, 2024, plus reasonable 22 attorneys' fees and costs. 23 FOURTH CAUSE OF ACTION 24 (Account Stated) 25 (Against Defendants FSI and DOES 6 through 10) 26 26. Plaintiff realleges Paragraphs 1 through 25, inclusive, and incorporates said 27 paragraphs herein by reference as though set forth in full. 28 -5- B062.1 1 27. Within the last two years, an account was stated in writing by and between 2 Plaintiff and Defendants FSI and DOES 6 through 10, wherein it was agreed that the 3 Defendants were indebted to Plaintiff in the sum of $212,584.00 for certain project work, plus 4 interest thereon at the highest legal rate per annum from January 31, 2024, plus reasonable 5 attorneys' fees and costs. 6 28. Although demanded by Plaintiff from Defendants, neither all nor any part of the 7 agreed balance has been paid and the same is now due, owing and unpaid from Defendants to 8 Plaintiff. A copy of Plaintiff’s Accounting Report is attached hereto as Exhibit “D” and 9 incorporated herein by reference. 10 FIFTH CAUSE OF ACTION 11 (Open Book Account) 12 (Against Defendants FSI and DOES 6 through 10) 13 29.. Plaintiff realleges Paragraphs 1 through 28, inclusive, and incorporates said 14 paragraphs herein by reference as though set forth in full. 15 30. Within the last two years, Defendants became indebted to Plaintiff on an open 16 book account for money due in the sum of $212,584.00 for certain project work furnished by 17 Plaintiff to Defendants at the special instance and request of Defendants for which Defendants 18 agreed to pay Plaintiff the above sum plus interest thereon at the highest legal rate per annum 19 from January 31, 2024, plus reasonable attorneys' fees and costs. 20 31. Although demand has been made, neither the whole, nor any part of the above 21 sum has been paid, and there is now due, owing and unpaid from Defendants to Plaintiff the 22 sum of $212,584.00, together with interest thereon at the highest legal rate per annum from 23 January 31, 2024, plus reasonable attorneys' fees and costs. 24 SIXTH CAUSE OF ACTION 25 (For Reasonable Value) 26 (Against Defendants FSI and DOES 6 through 10) 27 32. Plaintiff realleges Paragraphs 1 through 31, inclusive, and incorporates said 28 paragraphs herein by reference as though set forth in full. -6- B062.1 1 33. Within two years last past, Defendants FSI and DOES 6 through 10, inclusive, 2 became indebted to Plaintiff in the sum of $212,584.00 for certain project work furnished by 3 Plaintiff for said Defendants at the special instance and request of Defendants. The agreed and 4 reasonable value of said project work was and is the sum of $212,584.00, together with interest 5 thereon at the highest legal rate per annum from January 31, 2024. No part of said sum has 6 been paid, although demand therefore has been and is hereby made, and there is now due, 7 owing and unpaid the balance of $212,584.00, together with interest thereon at the highest legal 8 rate per annum from January 31, 2024, plus reasonable attorneys' fees and costs. 9 SEVENTH CAUSE OF ACTION 10 (On Contractor's License Bond) 11 (Against Defendants ACIC and DOES 11 through 15) 12 34. Plaintiff realleges Paragraphs 1 through 33, inclusive, and incorporates said 13 paragraphs herein by reference as though set forth in full. 14 35. FSI was, at all times relevant to this Complaint, a corporation, licensed as a 15 contractor, Number 503247 under the laws of the State of California. 16 36. The Defendant ACIC was, at all times in this Complaint mentioned, and is now a 17 corporation doing business under the laws of the State of California and authorized to transact 18 business as surety upon bonds or undertakings in the State of California. 19 37. On or before December 24, 1986, FSI applied to the Registrar of Contractors of 20 the Contractors State License Board of the Department of Professional and Vocational 21 Standards of the State of California for a contractor’s license or renewal thereof in accordance 22 with the provisions of Section 7071.6 of the Business and Professions Code of the State of 23 California. FSI filed with the registrar a bond, Number SC221192, dated January 1, 2023, 24 issued by the Defendant ACIC in the sum of $25,000.00 conditioned upon FSI’s compliance 25 with all of the provisions of Division 3, Chapter 9 of the Business and Professions Code of the 26 State of California, and inuring to the benefit of any person damaged as a result of a violation 27 of the chapter by the Defendant licensee. A copy of the bond is in the possession of Registrar 28 and ACIC. -7- B062.1 1 38. Plaintiff is informed and believes and thereon alleges that the project work 2 furnished to FSI was used by FSI in connection with certain projects performed by FSI in the 3 City of Los Angeles, California. FSI failed to comply with the provisions of Division 3, 4 Chapter 9 of the Business and Professions Code in that FSI diverted funds received for the 5 completion of the construction project and/or failed to substantially account for the application 6 or use of the funds and failed to pay for the project work provided by Plaintiff in violation of 7 the provisions of Section 7108 and 7120 of the Business and Professions Code. 8 39. As a result thereof, Plaintiff has been damaged in the amount of $212,584.00 9 plus interest at the highest legal rate per annum from January 31, 2024, plus reasonable 10 attorney's fees and costs. 11 WHEREFORE, Plaintiff prays for judgment as follows: 12 As to the First Cause of Action against Defendants FSI, DOUGLAS, PJD and DOES 1 13 through 5, jointly and severally: 14 1. For the sum of $212,584.00 or according to proof; 15 2. For interest incurred thereon from January 31, 2024, at the highest legal rate per 16 annum; 17 3. That said amounts be adjudged to be a lien on the work of improvement and all 18 land described in this Complaint; that said land be adjudged and decreed to be sold according 19 to law, that the proceeds of the sale be applied to satisfy costs of the sale and of these 20 proceedings and Plaintiff's claim, as aforesaid; that the interests of all of the Defendants and all 21 persons claiming under them, in and to said land be adjudged and decreed subsequent and 22 subject to Plaintiff's liens, whether said Defendants are lien claimants, judgment creditors, 23 purchasers, encumbrances, or otherwise; that each of said Defendants be barred and foreclosed 24 from all rights, claims, interests or equity of redemption in the property and every part of the 25 property when time for redemption has passed; that Plaintiff may become a purchaser at such 26 sale; that if there is a deficiency of proceeds to satisfy the amounts due to Plaintiff, judgment 27 for the deficiency be entered against Defendants; and 28 4. For such other and further relief as the Court deems just and proper. -8- B062.1 1 As to the Second through the Sixth Causes of Action against Defendants FSI and DOES 2 6 through 10, jointly and severally: 3 1. For the sum of $212,584.00 or according to proof; 4 2. For interest thereon from January 31, 2024, at the highest legal rate per annum; 5 3. For reasonable attorneys' fees and costs; and 6 4. For such other and further relief as the Court deems just and proper. 7 As to the Seventh Cause of Action against Defendants ACIC and DOES 11 through 15, 8 jointly and severally: 9 1. For the sum of $7,500.00; 10 2. For interest thereon from January 31, 2024, at the highest legal rate per annum; 11 3. For reasonable attorneys' fees and costs; and 12 4. For such other and further relief as the Court deems just and proper. 13 Dated: June 18, 2024 WAKEFIELD & ASSOCIATES, P.C. 14 15 By: James R. Wakefield, P.C. 16 Attorneys for Plaintiff 17 18 19 20 21 22 23 24 25 26 27 28 -9- B062.1 EXHIBIT “A” SUBCONTRACT AGREEMENT 08/17/2023 AGREEMENT WITH INDEPENDENT CONTRACTOR This agreement is made between FLOOR SYSTEMS INC. (SIGNATURE) and Matrix Surfaces Inc independent Contractor (Contractor) at Orange, California for the performance of certain tasks. Contractor represents and warrants that Contractor is engaged in an independent business and has complied with all federal, state and local laws regarding business permits and licenses of any kind that may be required to carry out, said to maintain such compliance throughout the duration of this agreement. Contractor is or may be engaged in the same or similar activities for other clients, and that FLOOR SYSTEMS INC. isnot necessarily the sole and only client or customer. THEREFOREIN CONSIDERATION OF THE FOREGO ING REPRESENTATIONS AND THE FOLLO WING TERMS AND CONDITIONS, THE PARTIES AG REE AS FOLLOWS: 1. SERVICES TO BE PERFORMED: FLOOR SYSTEMS INC. engages Contractor to install Carpet Tile, Carpet, padding, wood floors, ceramic tile floors or vinyl floors at various locations. MODIFY AS NEEDED 2. TERMS OF PAYMENT: FLOOR SYSTEMS INC. shall pay Contractor weekly after submission of approved invoices. All invoicing must be submitted no later than 30 days after completion of work. 3. ENTIRE AGREEMENT: This Agreement represents the entire agreement between Floor Systems Inc. and Contractor and supersedes any prior written or oral representations. Contractor and his subcontractors are bound by Floor Systems Inc. and any other documents incorporated therein insofar as they relate in any way, directly or indirectly to the work covered by this Agreement. 4. TIM E: Time is of the essence of this Agreement. Contractor shall provide Floor Systems Inc. with scheduling information in a form acceptable to Floor Systems Inc. and shall conform to Floor Systems Inc.'s progress schedules, including any change made by Floor Systems Inc. in the scheduling of work, Contractor shall coordinate its work with that of all other contractors, subcontractors and suppliers So as not to delay their performance. 5. CHANGES IN WORK: Contractor shall make no changes in the work covered by this Agreement without written direction from Floor Systems Inc. Contractor shall not be compensated for any change which is made without such written direction. No changes in the work covered by this Agreement shall exonerate any surety or any bond given in connection with this Agreement. 6. CLAIMS: If any dispute shall arise between Floor Systems Inc. and Contractor regarding performanc e of the work or any alleged change in the work, Contractor shall timely perform the disputed work and shall give written notice of a claim for additional compensation for the work within ten (10) days after commencement of the disputed work. Contractor's failure to give written notice within the ten (10) day period constitutes an agreement by Contractor that it will receive no extra compensation for the disputed work. 7. INSPECTION AND PROTECTION OF WORK: Co n tract or shall make the work accessible at all reasonable times for inspection by Floor Systems Inc. Contractor shail, at the first opportunity inspect all material and equipment delivered to the jobsite by others to be used or incorporate in the Contractor's work and give prompt notice of any defect therein. Contractor assumes full responsibility to protect the work done hereunder until final accep table Owner and Floor Systems Inc. 8. LABOR RELATIONS: Contractor shall maintain labor relations policies in conformity with the direction of Floor Systems Inc. and shall comply with those labor agreements applicable to the work performed under this Agreement, to the extent required by Floor Systems inc. 9. TERMINATION: (!) Should Contrator fail to rectify any contractual deficiencies, including failure to pay its credi tors, within three (3 ) working days from receipts of Floor Systems Inc.'s written notice, Floor Systems Inc. shall have the right to take whatever steps it deems necessary to correct said deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of Floor Systems Inc.'s corrective action, including reasonable overhead, profit and attorney's fees. (11) Floor Systems Inc. may at any time and for any reason terminate Contractor's services hereunder at Floor Systems Inc.'s convenienc e; in the event of termination for 9 p convenience. Contractor shall recover only the actual cost of work completed to the date of termination plus fifteen percent (15%) of the actual cost of the work for overhead and profit. Contractor shall not be entitled to any claim or lien against Floor Systems inc. or Owner for any additional compensation or damages in the event of such termination. 10. INDEMNIFICATION: To the fullest extent permitted by law, Contractor shall indemnify and hold harmless Owner and Floor Systems Inc. and their agents and employees from claims, demands, cause of actions and liabilities of every kind and nature whatsoever arising out or in connection with Contactor's operations performed under this Agreement. The indemnity shall apply regardless of any active and/or passive negligent act or omission of Owner or Floor Systems Inc., or their agents or employees, but Contractor shall not be obligated to indemnify any party for claims arising from sole negligence or willful misconduct of Owner or Floor Systems Inc. or their agents or employees or caused Solely by the designs provided by such parties. Theindemnity set forthin this Section shall not be limited to insurance requirements or by any other provision of this Agreement. All work covered by this Agreement done at the site or in preparing or delivering materials or equipment to the site shall be at the sole risk of Contractor until completed work is accepted by Floor Systems Inc. 11. INSURANC E: Contractor shall, at its expense, procure and maintain insurance on allits operations, with carriers acceptable to Floor Systems Inc., and amounts acceptable to Floor Systems Inc. and as required by the prime contract including the following coverage's: a. Workers’ Compensation as Required by Law b. Employers Liability insurance with minimum limits of $1,.000,000/$1 ,000,000/$1,000,000: c. Comprehensive General Liability- Minimum Limit $1,000,000 Per Occurrence d. Automobile Liability insurance- Minimum Limit $1,000,000 Combined Single Limit, including coverage for all owned, hired and non-owned automobiles. Ail insurance shall be in amounts and durations acceptable to Floor Systems Inc. and as required by the prime contract. Contractor shall name Floor Systems Inc. as additional insured under the Genera | Liability policy for both ongoing and completed operations. Sub Contractor's Insurance shall be primary to and not seek contribution from any other insurance available to Floor Systems inc. and provide both a General Liability and Workers Compensation Waiver of Subrogation endorsement in favor of Floor Systems Inc. Contractor shall provide certificates of insurance to Floor Systems Inc. The certificates of insurance shall provide that there will be no cancellation nor reduction of coverage without thirly (30) days prior to written notice to Signature. The failure of Floor Systems Inc. to enforce in a timely manner any of these provisions - Section 11 shall not act as a waiver to enforcement of any of these provisions at a later date in the performance of this greement. 12. CLAIMS RESOLUTION: Any claims resolution procedure incorporated in the prime contract shall be deemed incorporated in this Agreement. and shall apply to disputes arising hereunder In the absence of a claims resolution procedure in the prime contract, the parties hereto shall not be obligated to utilize arbitration or any non- judicial method of dispute resolution proceeding between the parties to this Subcontract, the pre vailing party shall be entitled to recover attorneys’ fees. 13. WA RRANTY: Contractor warrants to Owner, Architect and Floor Systems Inc. that all materials and equipment furnished shall be new, free from faults and defects and of good quality. Contractor hereby warrants its work against all deficiencies and defects for the period required by the prime contract, or the longest period permitted by the law of this State, whichever is less. 14. ATTORNEYS' FEES: In the event the partied become involved in litigation or arbitration with each other arising out of this Agreement or other performance in which the services of an attorney or other expert are reasonably required, the prevailing party shall be fully compensated for the cost of its participation in such proceedings , including the cost incurred for attorneys’ fees and experts’ fees. Unless judgement goes by default, the attorneys’ fees award shall not be computed in accordance with any court schedule, but shall be such as to fully reimburse all attorneys’ actually incurred in good faith, regardless of the size ofa judgment, it being the intention of the parties to fully compensate for all attorneys’ fees and experts’ p aid or incurred in good faith. In the case of a dispute under the prime contract dispute resolution provisions, Contractor shall be entitled to such attorneys’ fees and other costs as may be provided for under the prime contract. GP 15. SPECIALPROVISIONS: CONTRACTORS AREREQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD. ANY QUESTIONS CONC ERNING ACONTRACTOR MAY BEREFERRED TOTHEREGISTRAT OF THE BOARD WHOSEADDRESS |S: Contractors State License Board 3132 Bradshaw Road Post Office Box 26000 Sacramento, California 95826 FLOOR SYSTEMS INC. Authorized Signature independent Contractor Matrix Surfaces Inc 790435 Name of Contractor California State Contractor's License # aha fash, 33-0943467 uthorized Signature Social Security # or Fed era! Tax ID# DP EXHIBIT “B” CRM SERVED NOTICES BY ACCOUNT Prepared For: Jerry E Jones MATR. RFAC INC. CRM Document Number Statement: 01/31/2024 24011552 DOUGLAS 10-£01 ssteae0 PRELIMINARY NOTICE - PRI THIS NOTICE IS GIVEN PURSUANT TO CALIFORNIA VATE WORK 24011552 CIVIL CODE § 8034(a), 8102, 8106-8 1 18, 8200 ET SEQ. FOR A COPY OF ANY PAYMENT BOND.REFLECT WHIGH WAY SE THeISGted ar eee ECTION THIS IS NOTA UEN AND THIS IS NOTA CONTRACTOR 0A suBcOR ONY, MTOT Se TO OTe THIS eee WEMEOBE 16RT TICE ALSO be SENT Seo Ss WORK oF IMPROVEMENT, ML SLOOM VIA FAX REPRE SENTS & FORMAL OF EMALAEQUEST 10: 714-578-0844 TeTO YOU ARE HEREBY NOTIFIED THAT: (NAME AND ADORESS OF THE NAME AND ADDRESS OF ANY LENDER MATRIX SURFACES, INC, CLAIMANT) OR REPUTED LENDER (EK 24011552 5449 E. LA PALMA AVE. 7021 6350 0002 0337 4932 ANAHEIM, CA 92807 ., US BANK NATIONAL ASSOCIATION “ DBA HOUSING CAPITAL COMPANY 3200 BRISTOL ST STE 800 COSTA MESA. CA 92626 RELATIONSHIP TO THE PARTIES OF THE ONE GIVING THIS NOTICE: SUBCONTRACTOR HAS FURNISHEO OR WILL FURNISH LABOR, SERVICES MATERIALS, OF THE FOLLOWING GENERAL DESCRIP , EQUIPMENT OF TION: GRANITE/STONE INSTALLATION THE NAME AND ADDRESS OF THE OWNER OA REPUTED 7021 0350 0002 0337 3769 OWNER IS 24011552 *< DOUGLAS 10, LLC 4210 RIVERWALK PKWY STE 270 THE 8U& DING, STRUCTURE OR IMPROVEMENT IS LOCATED AT: RIVERSIDE, CA 92505 DOUGLAS 10, LLC (TRACT #78277) 1316 DOUGLAS ST LOS ANGELES, CA THE NAME AND ADDRESS OF THE DRECT CONTRAC TOR IS: Fe 7021 0350 0002 0337 4049 24011552 THE NAME AND ADDRESS OF THE PERSON OR FIRM WHO CONTRACTE SUCH LABOR, SERVICES, EQUIPMENT OR MATERIAL JS: D P JOSEPH DEVELOPMENT 4210 RIVERWALK PKWY FSI DESIGN 5130 E HUNTER AVE STE 270 RIVERSIDE, CA 92505 ANAHEIM, CA 92807 AN ESTIMATE OF THE TOTAL PRICE OF THE LABOR, SERVICES, EQUIPMENT, THE NAME AND ADDRESS OF THE SUBCONTRACTOR OA PERSONS OR MATERIALS FURNISHED OR TO BE FURNISHED IS: OR FIRM WHO CONTRACTED SERVICES: 24011552 $360,000.00 om EVEN no TICE TO PROPERTY OWNER FS! DESIGN HAVE PAID YOUR CONTRACTOR IN FULL, IF THE PERSON OF FAM THAT HAS GIVEN YOU THIS NOTICE IS NOT PAID 5130 E HUNTER AVE FOR LABOR. SERVICE, EQUIPMENT, OR MATERIAL PROVIDED OR TO IN FULL BE ANAHEIM, CA 92807 PROVIDED TO YOUR CONSTRUCTION PROJECT, A LIEN MAY BE PLACED ON YOUR PROPERTY, FORECLOSURE OF THE LIEN MAY LEAD TO LOSS OF ALL OR PART OF YOUR PROPERTY. YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS BY (1) REQUIRING YOUR CONTRACTOR TO PROVIDE A SIGNED RELEASE BY THE PERSON OF FIAM THAT HAS GIVEN YOU THIS NOTICE BEFORE MAKING ANY PAYMENT TO YOUR CONTRACTOR, THE NAME AND ADDRESS OF ADDITKONAL ENTITIES DESIGNATE OR (2) D ANY OTHER METHOD THAT IS APPROPRIATE UNOEA THE CIRCUMSTANCES. SY THE OWNER TO RECEIVE A COPY OF THIS NOTICE: 24011552 THIS NOTICE IS REQUIRED BY LAW TO BE SERVED BY THE UNDERSIGNE Ke D AS A STATEMENT OF YOUR LEGAL RIGHTS. THIS NOTICE IS NOT INTENDED TO REFLECT UPON THE FINANCIAL CONDITION OF THE CONTRACTOR OR THE PERSON EMPLOYED BY YOU ON THE CONSTRUCTION PROJECT. iF YOU RECORD A NOTICE OF CESSATION OA COMPLETION OF YOUR CONSTRUCTION PROJECT, YOU MUST WITHIN 10 DAYS AFTER RECORDING, SEND A COPY OF THE NOTICE OF COMPLETION TO YOUR CONTRACTOR AND THE PERSON OR FIRM THAT HAS GIVEN YOU THIS NOTICE. THE NOTICE MUST 8€ SENT BY REGISTERED OA CERTIFIED MAIL, FAILURE TO SENO THE NOTICE WEL EXTEND THE DEADLINE TO RECORD A CLAIM 24011552 OF ics UEN. YOU ARE NOT REQUIRED TO SEND THE NOTI IF YOU CEARE A RESIDENTIAL HOMEOWNER OF A DWELLING CONTAINING FOUR OR FEWER UNITS. PROOF OF SERVICE AFFIDAVIT | DECLARE, UNDER PENALTY OF PERJURY, THAT THE FOREGOIN G IS TRUE ANO CORRECT. EXECUTED ON: JANUARY 31, 2024 aT Baca. CALIFORNIA oS PS Ce ffs Prepared by: CRM Lien Services, Inc. » 3230 East imperial Highway « Suite