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Contracts
Fraud
Unpaid Construction Fees

Plowboy Landscapes v. Melchiori Construction

Published: Oct. 8, 2011 | Result Date: May 12, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 1305419 Verdict –  $5,800,000

Court

Santa Barbara Superior


Attorneys

Plaintiff

Kristine L. Mollenkopf


Defendant

John R. Rydell II


Facts

Melchiori Construction, a general contractor, sued Chapala One LLC for unpaid construction fees related to Santa Barbara's controversial townhome project. Multiple subcontractors also sued Melchiori Construction for nonpayment. Melchiori alleged Chapala's owner, Don Hughes, committed fraud based on false promises that he would pay the company and breach of contract. Melchiori contended it was forced to continue working on the project from 2004 until 2008, despite not being paid. Hughes allegedly reassured Melchiori that it would be paid. However, Hughes allegedly ordered changes that increased the amount of work.

Damages

Melchiori sought $5.8 million in unpaid dues as well as penalties and attorney fees and costs.

Result

The jury returned a verdict in favor of Melchiori and awarded the company $5.8 million in damages for the unpaid bill. The verdict of $5.8 million was reduced by approximately $3 million to account for pretrial settlements. The net result to Melchiori was approximately $2.8 million.

Length

31 days


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