After nearly two years of litigation, KNCH was retained by an insurance carrier on behalf of a local general contractor who builds luxury single-family custom homes in San Diego. Partner Robert Carlson and associate Dylan Taylor of our San Diego office were faced with defending against breach of contract, negligence, and contractor licensing claims at a late point in litigation with limited discovery.
Our client built a beautiful 8,400 square foot luxury home in Encinitas, California, for the homeowner Plaintiffs. Plaintiffs refused to pay our client a substantial bill for the appliances and fixtures installed in their home, and responded to the general contractor’s demand for payment with an action for breach of contract, negligence, unjust enrichment, and contractor licensing claims. Specifically, Plaintiffs sought roughly $700,000 for alleged construction defects and claims for disgorgement of profits under licensing statutes that apply to general contractors. These claims were brought against our client as an individual as well as against his corporation, and several of these claims were not covered under the insurance policy.
After completion of trial, the Court awarded a defense verdict for the corporate entity, and a defense verdict as to the negligence and licensing disgorgement claims against our client as an individual. The Court awarded $7,080 against our client in his individual capacity in contract, however, this amount was less than the statutory offer made on behalf of our client. As such, the law allows for a net judgment in our clients’ favor for up to $50,000 in costs and expert fees from Plaintiffs. Those costs are currently being pursued. Congratulations on a fantastic result.