ACR Services v. LSM Group CA4/1

CourtCalifornia Court of Appeal
DecidedDecember 6, 2023
DocketD082256
StatusUnpublished

This text of ACR Services v. LSM Group CA4/1 (ACR Services v. LSM Group CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ACR Services v. LSM Group CA4/1, (Cal. Ct. App. 2023).

Opinion

Filed 12/6/23 ACR Services v. LSM Group CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

ACR SERVICES, INC., D082256

Plaintiff and Respondent,

v. (Super. Ct. No. CIVRS1303806 )

LSM GROUP, INC.,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of San Bernardino County, John M. Tomberlin, Judge. Affirmed. Clapp Moroney Vucinich Beeman & Scheley, Adrianne C. Duncan, Austin R. Wallick, and Christopher J. Beeman, for Defendant and Appellant. Law Office of Thomas W. Sardoni, Thomas W. Sardoni, Daniel L. Schnebly, and Nathan T. W. Sardoni, for Plaintiffs and Respondents. ACR Services, Inc. (ACR) provided emergency services and materials in response to a water leak at a restaurant operated by LSM Group, Inc. (LSM). However, LSM refused to pay ACR for its services. ACR therefore sued LSM for breach of contract, quantum meruit, a common count (work, labor, services, and materials), and unjust enrichment. The dispute proceeded to a bench trial on the first three causes of action, and the trial court found in favor of ACR in the amount of $104,647.01 plus prejudgment interest, costs, and attorney fees. LSM appeals, contending that the trial court erred in finding a valid contract between the parties. In addition, LSM argues the two-year statute of limitation for equitable claims not based on a written contract had expired. As such, LSM maintains the trial court erred in finding in favor of ACR and awarding it any damages. We disagree with LSM’s contentions; thus, we affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND

Trial Evidence1 In 2009, LSM operated a pizza restaurant, Pizza Di Mario, located on Haven Avenue in Rancho Cucamonga. Pizza Di Mario operated in a commercial building, and it shared a wall with a karate studio that operated out of the suite next door. At that time, Lynnette Samson was the principal owner of LSM. On February 15, 2009, the Rancho Cucamonga Fire Department called Samson to inform her that it was responding to a water leak at Pizza Di Mario. The water leak emanated from a loose water hose

connected to an ice machine in that restaurant.2

1 We recount the facts in the light most favorable to the verdict. (See Sacramento Sikh Society Bradshaw Temple v. Tatla (2013) 219 Cal.App.4th 1224, 1227.)

2 Although a water leak caused by a loose water hose to an ice maker may sound minor, the damage caused here was anything but. Despite not being thoroughly explained in the briefs, the loose water hose apparently allowed water to spill across Pizza Di Mario and overwhelm the floor drains, which backed up, causing the entire property to flood. Some of that water was contaminated with harmful bacteria.

2 When Samson arrived at Pizza Di Mario on February 15, a crew from the fire department was there, “cleaning up [and] draining the floors.” Samson stated that the fire chief told her “to clean up, sanitize the pizza and he’ll come back in the evening to inspect.” Samson and another employee cleaned Pizza Di Mario the rest of the day and met with a representative of the fire department that evening. According to Samson, the representative told her that she just needed “to contact the health department and [she] [could] actually open right there.” However, Samson did not open the restaurant that evening. Instead, she decided to open it the next day. ACR is a licensed contractor providing emergency water, sewage, and fire remediation for commercial and residential real properties. Brandt

Benson3 is the chief executive officer of ACR. On February 16, 2009, Knicko Askari called Brandt requesting that ACR come to Pizza Di Mario because the property had suffered “sewage damage” and “had been red tagged by the fire department.” Askari had been contacted by the property manager and served as “a project coordinator.” When Brandt arrived at Pizza Di Mario, he reviewed a closure order for the business issued by the Rancho Cucamonga Fire Department. The closure order called for sanitizing all surfaces, discarding any exposed food packaging that was unsealed, obtaining San Bernardino Health Department approval, clearing floor drains, and removing water from floor areas. All five of these tasks were required to be completed before the business could reopen. Brandt could smell the sewage when he entered Pizza Di Mario. There, he approached Samson, who had arrived at the property. He told her that “based on where everything ha[d] gotten wet, . . . the karate studio was

3 Because Brandt Benson’s brother Michael testified at trial, we refer to Brandt and Michael by their respective first names. 3 affected as well, . . . [and] the walls around the perimeter were being affected by sewage.” Brandt further informed Samson that he needed “to look at all the property, then come back and have a quick conversation . . . about what needs to be happening.” After further inspecting the property, Brandt told Samson that a certified hygienist was required to determine whether the water was contaminated, which would impact the scope of the cleanup of the property. In addition, Brandt informed Samson that they needed to talk with the insurance adjuster. Despite the need for additional information regarding the scope of the necessary work, Brandt and Samson signed a written

Emergency Services Agreement (ESA).4 The ESA listed the address of Pizza

Di Mario and referenced Askari as the project coordinator.5 According to Brandt, the ESA “has basic rates and so forth that are established in the service call, right down to the equipment.” However, Brandt admitted that several sections of the ESA were not filled out. Brandt explained that the sections were left blank because, at the time it was executed, the project was “going day by day. It was a time and materials job once it was established with the adjuster and the hygienist.” The ESA also included an attachment, which contained rates (e.g., service call $158.91, labor $56.75) that were based on rates from Xactimate, a billing software commonly used by insurance companies. Further, Brandt

4 The ESA was an exhibit at trial. However, the trial exhibits are not part of the record. Although this case concerns the validity of the ESA, surprisingly, neither party cites directly to it in any of the briefs. In other words, the parties have not indicated where the ESA exists in the record.

5 The owner of the karate studio also signed an emergency services agreement. 4 informed Samson that billing for the project would “be produced on . . . Xactimate.” On the day the ESA was executed, Brandt also told Samson that, “on the first day,” “all we’re going to do is treat the areas, disinfect them, put some equipment to stabilize the air, and . . . extract what we can as far as the free water or free sewage that’s floating around the property.” Brandt also discussed with Samson the need to clean up the neighboring karate studio that had been damaged by the water leak at Pizza Di Mario. And he informed her that they would meet with the hygienist and insurance adjuster the following day. According to Brandt, the hygienist’s report would determine the scope of the work.

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ACR Services v. LSM Group CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acr-services-v-lsm-group-ca41-calctapp-2023.