Facts

On Sept. 7, 2005, Uwe and Beth Wessbecher hired The Conrado Co. Inc. to build a single family home for them. They wanted Conrado to tear down and take out framing, which another contractor had previously installed, and to fix the home's foundation. On March 7, 2006, the parties entered into an agreement for the completion of the home in exchange for $3,092,540. The Wessbechers also entered into a contract with Modern Roofing for the installation of a roof and the waterproofing of two outside decks. On March 9, they terminated the Conrado contract, although most, but not all, of the work was finished. Plaintiffs then sued Conrado because the windows and the deck leaked.

In one lawsuit, the Wessbechers sought to arbitrate claims against Conrado. In another lawsuit, the Wessbechers sued three separately hired subcontractors, Don Torrecillas, individually and dba Modern Roofing, Dale Chris Lewis, individually and dba The Stone Gallery, and Phillip Knowles, individually and dba Ceramic & Stone Design, that worked on constructing the main deck.

Conrado intervened in that action, then filed a second action against its subcontractors, including A&J Plastering Inc., Down Under Plumbing Services Inc., G.W. Joel Contractor, Jason Keller Heating & A/C and The Stone Gallery, for indemnity and arbitration against the subcontractors.

PLAINTIFFS' CONTENTIONS:
The Wessbechers contended that Conrado improperly placed the elevation of the framing of the steps for the deck, causing the tile to be set at an excessive elevation and letting water go under the deck at the doors of the house. Plaintiffs alleged that Conrado failed to properly build windowsills, wrongly installed an outside door, didn't correctly attach a trellis, failed to put in soffits and a niche, and let water penetrate stucco.

As to Torrecillas, plaintiffs contended that it plugged weep holes to drains on the deck, which disallowed drainage from grout under tile and that Knowles didn't prevent the holes from being filled with grout because he didn't put in pebble dams. Plaintiffs also contended that Lewis, who installed stone, incorrectly set up exterior band around that deck and ledges, so that there were holes in the mortar, which let water build up and discolor the stucco.

DEFENDANT'S CONTENTIONS:
Conrado contended that the Wessbechers should be held liable for the work that was performed after Conrado departed from the site and claimed that the Wessbechers' faulty management of the construction resulted in water damage. Conrado argued that the Wessbechers directly hired the subcontractors, who caused all of the damage. Further, it asked for indemnification from A&J, G.W. Joel, Keller and Stone Gallery.

Torrecillas rejected the Wessbechers' claims of wrongdoing, arguing that any claims fell outside of the scope its employment and instead, other entities should be held liable.

Damages

The Wessbechers wanted $389,201 for the cost of repairing and investigating. Conrado asked for $30,000 in termination fees and $42,066 in lost profits based on unlawful termination of the agreement.

Result

The Wessbechers settled with Torrecillas for $50,000 and with Knowles for $60,000. After arbitration with the remaining defendants, the plaintiffs, they settled with Conrado for $410,000. The matter then proceeded to a bench trial with Lewis and the trial court awarded the Wessbechers $30,874.89 against Lewis. Plaintiffs received a total of $550,874.89.

Other Information

MEDIATORS: William Pagano, Richard M. Silver.