Construction, Liens For Attorney Fees: In Public Works Case, Under Unusual Circumstances, Surety Prevailed Over Attorney Charging Lien

Surety Won This One Under Attorney Lien Exceptions.

            Nichols v. North American Specialty Ins. Co., Case No. B329206 (2d Dist., Div. 2 Nov. 17, 2023) (unpublished) is an interesting (appellate court saying “messy”) dispute over the priority between the attorney’s lien of a general contractor and a surety which paid off subcontractors on behalf of the general contractor on a public works project.  The surety won the priority battle with respect to payment of proceeds, with the appellate court affirming.  Equities do matter, and it did in this opinion.  The equities, under exceptions to attorney’s lien priorities, favored the surety:  it paid off subcontractors on a public project such that it elevated itself for representing the general contractor owing moneys to the subs.