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Insurance Company v. School District

May 2008

Sedgwick earned a trial victory and favorable settlement of the judgment for our client in a construction/surety action filed in California state court. When a general contractor became insolvent on a construction project for a school district, our client paid claims submitted against the public works payment bond. Thereafter, the school district paid the insolvent general contractor contract money in violation of the client's written instruction and despite pending stop notices filed with the school district. The client subsequently sued the school district to recover money paid to the general contractor. Following the school district's unsuccessful motion practice seeking a dismissal of the client's complaint, Sedgwick prevailed on all causes of action in a five-day bench trial and obtained a $310,000 judgment. While the post-judgment motion for attorney's fees was pending, the school district settled, agreeing to a $495,000 payment, which included reimbursement of more than 90 percent of the client's incurred attorney's fees and costs.