Facts

Laura Mulitz and Tom Mulitz sued Building Dreams Construction Inc., Daniel Fitzgerald, L.A. Stucco Inc., and Daniel Batres. Building Dreams filed a cross-complaint against L.A. Stucco. The lawsuit concerned the remodeling of the Mulitzs' family residence located in Los Angeles.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that they entered into a construction contract with contractor, Building Dreams, for the repair and remodeling of the subject property. Plaintiffs alleged that Building Dreams then subcontracted with L.A. Stucco, which had since been dissolved, to perform the stucco work. While L.A. Stucco completed its work, less than a year later, plaintiffs noticed cracking in the stucco work. Plaintiffs brought the stucco issues to Batres, Building Dreams' principal, but the parties could not agree regarding the necessary scope of repairs. Plaintiffs alleged that Building Dreams likewise refused to repair the faulty stucco work, prompting plaintiffs to retain California Plastering Consultants to conduct a pre-lawsuit investigation. The consultant allegedly discovered several defects in the stucco work.

Plaintiffs asserted causes of action for negligence and two counts of breach of contract.

DEFENDANTS' CONTENTIONS:
Building Dreams filed a cross-complaint against L.A. Stucco, alleging that cross-defendant was liable for the defective stucco work. It asserted claims for declaratory relief, equitable contribution, indemnity, and breach of written contract.

Result

The jury rendered a verdict in favor of the Mulitzs, and awarded them $403,827 in damages. The award was subject to an $110,000 setoff, which represented settlements the Mulitzs previously recovered. The court dismissed Building Dreams' cross-complaint against L.A. Stucco as part of its good faith settlement with plaintiffs for $110,000 prior to trial. Plaintiffs were assigned the rights to Building Dreams' cross-complaint.