California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 5 — Stop Payment Notice, Article 5 — Enforcement of Claim Stated in Stop Payment Notice, Section 8556
A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following circumstances:
(a) An action to enforce payment of the claim stated in the stop payment notice is dismissed, unless expressly stated to be without prejudice.
(b) Judgment in an action to enforce payment of the claim stated in the stop payment notice is against the claimant.
Notes
Establishes that a stop payment notice ceases to be effective and withheld funds must be released when the enforcement action is dismissed, unless the dismissal expressly states it is without prejudice, or when judgment in the enforcement action is entered against the claimant.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8556 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-5/article-5/section-8556