Kaufman Carrara Inc. v. Allante2, LLC "Paladar," et al.
Published: Jun. 14, 2005 | Result Date: Dec. 6, 2004 | Filing Date: Jan. 1, 1900 |Case number: BC281720 Bench Decision – $190,070
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Larry A. Rothstein
(Law Offices Larry A. Rothstein)
Defendant
Michael H. Rosenstein
(Law Offices of Michael H. Rosenstein)
Experts
Defendant
Gidon R. Vardi Ph.D.
(technical)
Facts
The plaintiff, Kaufman Carrara Inc., a licensed general contractor, entered into two separate contracts to construct tenant improvements for a Cuban-themed restaurant (Paladar) and a companion Cuban-themed bar/lounge (Nacional). Both Paladar and Nacional were located within the same building in Hollywood. Although the Paladar and Nacional lessees were separate LLCs, their managing members were the same. After KCI had completed all of the tenant improvements on Nacional (which opened in May 2002) it continued to work toward the completion of Paladar. After KCI had completed the structural work and was ready to pour the concrete slab, the tenants advised KCI that they would not pay KCI either for its last change order on Nacional (approximately $200,000) or pay KCI its last pay application on Paladar, which was approximately $81,000. After KCI filed separate actions to recover the amounts it claimed were due on both the Nacional and Paladar contracts, it was forced to file Chapter 7 Bankruptcy protection because it did not have the ability to pay subcontractors and suppliers as a result of the tenants' non-payment. Subsequently, the Chapter 7 Trustee took over the prosecution of both actions on behalf of the bankruptcy estate. KCI brought suit against the tenant and property owners to foreclose its mechanics' lien.
Settlement Discussions
Prior to trial, the plaintiff had demanded $75,000. The defendants made no offer. On the fifth day of trial, the plaintiff demanded $120,000 and the defense offered $40,000.
Damages
The plaintiff claimed contract damages of $81,584 and recorded a timely mechanics' lien against the property and the property owners. The plaintiff also claimed it was entitled to interest at two percent per month on the principal amount plus attorneys' fees pursuant to Civil Code Section $3260 and 3260.1 against the tenant.
Result
The court awarded KCI the full amount of its claim, $81,584 plus prejudgment interest of ten percent against the property owners on the mechanics' lien. It was also awarded prejudgment interest at two percent per month of $50,854. On motion, the court awarded $52,975 in attorneys' fees against the defendants for a total judgment of $190,070.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390