Facts

Plaintiff Applied Utility Systems, Inc. (AUS) sold Benz Engineering Co., Inc. (Benz Air) two selective catalytic reduction systems (SCR Systems), which Benz Air, a contractor, was going to install on boilers at plants in Modesto and Woodland. The SCRs helped reduce boiler emissions.

Both parties sued one another for, among other claims, breach of contract.

PLAINTIFF'S CONTENTIONS:
At trial, AUS alleged that it provided the SCR Systems according to specifications provided by Benz Air. AUS alleged that Benz Air modified the SCR systems or failed to properly install them. AUS alleged that Benz Air refused to allow AUS to inspect the SCR systems and address any issues.

DEFENDANT'S CONTENTIONS:
Benz Air alleged that the SCR systems did not work as required. Benz Air alleged that it had to replace the systems at its own cost.

Settlement Discussions

AUS offered a CCP 998 offer of a mutual walk away. Benz Air made a CCP 998 offer of $1,023,669.

Damages

Benz Air claimed approximately $1 million in damages. AUS claimed $172,500 in breach of contract damages plus slander.

Result

AUS was awarded a total of $897,051 ($172,500 breach of contract; $136,071 interest per contract; $561,126 attorney fees; $27,354 costs and disbursement).

Other Information

The jury denied Benz Air's cross-complaint in its entirety, awarding it no damages, and found in favor of AUS on its claims for breach of contract and slander. The judge granted Benz Air's motion for new trial on the limited issue of the slander award but denied the motion for new trial and motion for judgment notwithstanding the verdict on the breach of contract issue. Benz Air filed a notice of appeal.

Deliberation

three hours

Length

two weeks