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Contracts
Construction Contract
Fraud, Unlicensed Contractor

Rajat Sapra, Sandyha Sapra v. Syed Bokhari, et al.

Published: Sep. 12, 2009 | Result Date: Jul. 14, 2009 | Filing Date: Jan. 1, 1900 |

Case number: RG07357589 Verdict –  Mixed verdict

Court

Alameda Superior


Attorneys

Plaintiff

Paul Schroeder

Clifford E. Hirsch
(Hirsch Closson APLC)


Defendant

Peter J. Linn
(Bishop Barry)


Facts

Plaintiffs Rajat and Sandyha Sapra own a single-family home in Berkeley. On Feb. 27, 2007, the plaintiffs entered into a written contract with Syed Bokhari and nonexistent company called Irahkob Inc., which called for Bokhari and his company to build a second story room addition on the plaintiffs' home. The total contract price was $85,000.

On July 1, 2007, a new contract was signed for the construction of the second story room addition, at the same contract price as before. The work was to commence on July 16, 2007, and was estimated to take six to eight weeks to complete. The work eventually commenced in late July or early August 2007. However, on Sept. 7, 2007, an official from the city of Berkeley stopped by the plaintiffs' project and inquired about the permit. Finding that no permit had been issued, the official issued an immediate stop-work order. By that time, the Sapras had paid Bokhari $80,000. The house was framed, but far from complete.

It was later discovered that Bokhari did not have a contractor's license and was thereafter criminally prosecuted. The plaintiff filed a civil action against the unlicensed contractor, his brother and father, as well as the architect and other subcontractors on the project.

Contentions

PLAINTIFFS' CONTENTIONS:
The plaintiffs claimed the Bokhari defendants fraudulently induced the plaintiffs to enter into the home improvement contract, negligently performed the work, and caused nearly $300,000 in damages to their home.

The plaintiffs also contended that the other defendants knew Bokhari was unlicensed and conspired with Bokhari to defraud them.

DEFENDANTS' CONTENTIONS:
Electric Dimensions contended that the work performed by the electrical subcontractor was satisfactory, and substantially completed at the time the city of Berkeley issued its stop-notice. Therefore, Electric Dimensions was neither negligent in the performance of its work, nor liable for any damages. Electric Dimensions also contended that it did not conspire to defraud the plaintiffs.

The architect, Benjamin Tarcher, contended that his actions were not negligent, and that he also was not involved in any conspiracy to defraud the plaintiffs.

The Bokhari defendants did not appear at trial.

Settlement Discussions

The plaintiffs demanded $750,000 from Electric Dimensions. Electric Dimensions made a C.C.P. Section 998 offer of $7,500.

Result

Defense verdict in favor of Electric Dimensions and Benjamin Tarcher. The plaintiffs received a judgment in excess of $2.5 million against the Bokhari defendants.

Other Information

According to plaintiffs' counsel: Plaintiffs were denied jury instructions regarding negligence per se and defendant's experts were permitted to testify that work could be done without a permit. Plaintiffs' counsel was also denied the opportunity to present rebuttal closing argument. FILING DATE: Nov. 21, 2007.

Deliberation

1.5 days

Length

three weeks


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