J. Alvarez Construction v. Western National Group
J. Alvarez Construction, Inc. (Alvarez), a framing contractor, entered into an agreement with Western National Group, L.P. (Western National), a general contractor, to assist in the construction of an apartment complex. After the parties had various disputes regarding Alvarez's and Western National's respective obligations under the agreement, Alvarez recorded a mechanics' lien on the property on which the apartment complex was being built. Shortly thereafter, Western National terminated Alvarez and ordered Alvarez off the job site. Western National subsequently recorded a "release bond" pursuant to Civil Code section 3143 for the purpose of releasing the property from the lien. Alvarez later recorded an additional mechanics' lien on the property.
Alvarez brought claims against Western National that included breach of contract, quantum meruit, and foreclosure on the mechanics' liens. After a bench trial, the trial court found in favor of Alvarez on all of its claims and entered a judgment awarding Alvarez damages in the amount of $637,344.99, and interest in the amount of $257,731.79. The judgment also states that Alvarez "has a mechanics' lien" on the property in the amount of $539,337.99. The trial court entered a postjudgment order awarding Alvarez costs in the amount of $30,843.64.
On appeal, Western National raises a number of claims of error concerning liability, damages, prejudgment interest, and costs. We affirm the trial court's finding of liability with respect to Alvarez's breach of contract claim. We conclude that we need not consider Western National's contention that the court erred in finding Western National liable on Alvarez's quantum meruit claim in light of our disposition of the other claims Western National raises in this appeal. Court reverse the judgment on Alvarez's mechanics' lien claim and remand with directions that the trial court conduct further proceedings regarding the release bond that Western National executed.
With respect to damages, Court conclude that the trial court improperly awarded damages for delayed performance ($93,672), unsubstantiated lost profits ($42,737), and unsigned change orders ($8,199.15), and that the damage award must therefore be reduced by $144,608.15, to $492,736.84. Similarly, if the court determines on remand that Alvarez is entitled to recover on the release bond, any subsequent judgment on the bond must also be reduced by $101,871.15, to $437,466.84, for amounts improperly awarded for delayed performance ($93,672), and unsigned change orders ($8,199.15).
The trial court must recalculate the award of prejudgment interest on remand, to correspond with our reduction of the damages. In recalculating prejudgment interest, the trial court must toll the accrual of prejudgment interest for the period during which the case was stayed pursuant to Alvarez's motion for a stay. Finally, because the trial court erred in awarding nonstatutory costs in a postjudgment proceeding, the cost award must be reduced by $18,073.64.
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