Facts

Plaintiff Subcrete Construction Inc. constructed a 4,500-square-foot custom hillside home for defendants Onnik Mehrabian and Armenouhi Mehrabian which they intended to use as their residence. Plaintiff constructed the home pursuant to a written contract prepared by defendant whereby plaintiff would be paid for all costs of the construction, including labor, supplies and materials, plus a fee of eight percent above and beyond the actual amount of all such costs.

After issuance of permits, plaintiff started construction in August of 2002, and completed the home by December of 2003. The final price of the home after completion was over $1.3 million and despite having made interim payments during the construction, the defendants owed and refused to pay a balance of approximately $282,000. Defendants took possession of the home within weeks of its completion, and lived in the home since the property was completed, and made no other improvements or repairs to the property since taking possession. Plaintiff filed its mechanic's lien and pursued its claim.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that it was owed all costs and fees spent in the construction of the home, and that the home was completed timely in accordance with the plans free from any defect. Plaintiff further contended that the written agreement was a "cost plus" contract, and that defendants were provided with all receipts, reports and invoices from all work performed.

DEFENDANT'S CONTENTIONS:
Defendants contended that the written agreement contained a cap of costs to be expended, and also contended that there were verbal agreements to the contrary. Defendants contended that the amounts set forth on building permits by City Officials proved that a 4,500-square-foot custom hillside home was supposed to cost no more than $540,000. Defendants also contended that the home was not built timely, and that the home was built with defects, and claimed damages in excess of $1 million. Defendants claimed that plaintiff was overcharging and fraudulently claiming expenses that were not used in the construction of their home. Defendants contended the individual officers of the corporation were liable under an alter ego theory.

Result

Plaintiff received a bench judgment for the principal for $304,163.12. The Court found plaintiff complied with the contract and found no defects. Plaintiff was granted an additional $135,811.05 for costs and attorney's fees for defendant Onnik Mehrabian's wrongful denial of plaintiff's Request for Admissions, for a total judgment of $439,974.17. Plaintiff and Cross-Defendants also prevailed on the cross claim.

Other Information

Defendants have filed an appeal claiming the trial judge committed error.