Section 987.89 Of Article 3.1. Veterans’ Farm And Home Purchase Act Of 1974 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 3.1.
987.89
. The action of a veteran purchaser for damages against any
third party does not affect his right of action for all damages
against any party other than the department. If the department
indemnifies, or becomes obligated to indemnify, the veteran
purchaser, it may likewise bring an action against any such third
party responsible for damage to the contract property. In the latter
event, the department may recover in the same suit all payments made
on behalf of the veteran purchaser.
If either the veteran purchaser or the department brings an action
against such third party, the veteran purchaser or the department,
as the case may be, shall forthwith give to the other written notice
of the action and of the name of the court in which the action is
brought, by personal service or registered mail. Proof of such
service shall be filed in such action. If the action is brought by
either the veteran purchaser or the department, the other may, at any
time before trial on the facts, join as party plaintiff, or shall
consolidate the action if brought independently.
The court shall first apply, out of the entire amount of any
judgment for any damage recovered by the veteran purchaser, a
sufficient amount to reimburse the department for the amount of its
expenditures for indemnification. If the department has not joined in
the action or has not brought action, or if the action has not been
consolidated, the court, on the department's application, shall allow
as a first lien against the entire amount of any judgment for any
damages recovered by the veteran purchaser, the amount of the
department's expenditures for indemnification.