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Contracts
Construction Contract
Failure to Pay

Angotti & Reilly Inc. v. Alexander Group LLC, et al.

Published: Jun. 12, 2010 | Result Date: Dec. 4, 2009 | Filing Date: Jan. 1, 1900 |

Case number: HG07362133 Bench Decision –  Cross-claim: $592,374 (including fees and costs)

Court

Alameda Superior


Attorneys

Plaintiff

Robert P. Hamilton
(ADR Services)

David M. Buoncristiani

Brienne Wesolek

James F. Hetherington

Aaron Gruber


Defendant

Kim R. Mayor

Wallace E. Smith
(Squire Patton Boggs LLP)


Facts

Defendant Alexander Group LLC (AG) entered into an agreement with plaintiff Angotti & Reilly Inc., under which Angotti would construct AG's new office and improve its warehouse, located at 25447 Industrial Boulevard in Hayward, California. AG agreed to pay Angotti $1.8 million for the work. Angotti stated that the agreement was modified to expand the project by over $400,000.

Angotti filed suit against AG, its representative Christoper Lam, and Joe Pucci & Sons Seafoods. AG, Lam, and Pucci filed a cross-claim, alleging Angotti failed to perform under the contract, failing to provide all items called for, failing to perform all work as guaranteed, and failing to complete the project within the terms of the terms of the contract.

Contentions

PLAINTIFF'S CONTENTIONS:
Angotti contended that after it completed the required work under the agreement, AG failed to pay. Angotti further alleged that in October 2003, Angotti, AG, Lam, and Pucci & Sons, entered into an agreement for a promissory note and change orders, whereby Angotti agreed to finance the cost of the change orders. In exchange, the other parties to the agreement would issue Angotti a note receivable. The note receivable was to be guaranteed, with interest payable monthly with the first payment due Jan. 23, 2004. Angotti contended that AG failed to issue the note, also failing to make the first interest payment.

DEFENDANTS' CONTENTIONS:
AG, Lam, and Pucci & Sons alleged Angotti failed to perform under the contract by failing to provide all items called for, failing to perform all work as guaranteed, and failing to complete the project within the terms of the terms of the contract. They further claimed that when they sought compliance from Angotti, it refused to perform, and demanded more money to complete the project.

Damages

Angotti sought $218,000 in damages relating to the promissory note change order, as well as $187,000 for extra work. Defendants sought costs to repair defective work, costs to complete incomplete work, and consequential damages.

Result

The jury rendered a verdict for Angotti, in the amount of $99,000, on it's claim, and a verdict for AG in the amount of $129,700, on it's cross-claim, resulting in a net verdict for AG in the amount of $30,700. On April 5, 2010, the court awarded costs and fees to defendants/cross-complainants in the amount of $561,674.

Other Information

An appeal, challenging several issues, is pending. FILING DATE: Dec. 19, 2007.


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