Dickerson v. Perry & Papenhausen, Inc. CA4/1

CourtCalifornia Court of Appeal
DecidedApril 28, 2021
DocketD076080
StatusUnpublished

This text of Dickerson v. Perry & Papenhausen, Inc. CA4/1 (Dickerson v. Perry & Papenhausen, Inc. 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
Dickerson v. Perry & Papenhausen, Inc. CA4/1, (Cal. Ct. App. 2021).

Opinion

Filed 4/28/21 Dickerson v. Perry & Papenhausen, Inc. CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

WILLIAM DICKERSON et al., D076080, D076471 Plaintiffs and Appellants, v. (Super. Ct. No. 37-2009-00088289- CU-CD-CTL) PERRY & PAPENHAUSEN, INC. et al.,

Defendants and Respondents.

WILLIAM DICKERSON, Plaintiff and Appellant, v. PERRY & PAPENHAUSEN, INC., Defendant and Appellant.

APPEALS from a judgment and order of the Superior Court of San Diego County, Ronald L. Styn, Judge. Affirmed.

Procopio, Cory, Hargreaves & Savitch and Kendra J. Hall for Plaintiffs William Dickerson and Paradiso in Terra, LLC. Schwerdtfeger Law Group, Sean D. Schwerdtfeger, Catherine L. Coughlin and Sarah K. Richards for Defendants Perry & Papenhausen, Inc., James Papenhausen, James Papenhausen, II, Papenhausen Construction, and Frederick Perry, Jr.

This is the second round of appeals arising from the allegedly defective construction of William Dickerson’s home by general contractor Perry & Papenhausen, Inc. (P&P), and the decidedly complicated litigation that followed. Dickerson and Paradiso in Terra LLC (Plaintiffs) sued P&P and

others (Defendants),1 as well as their subcontractors; Dickerson alleged breach of contract and both Plaintiffs asserted negligence, among other claims. Plaintiffs settled with the subcontractors. Defendants filed a cross- complaint, claiming Dickerson breached the home construction contract by failing to pay certain amounts. A jury found Dickerson and P&P liable for breach of contract, and P&P liable for negligence, and awarded damages to both sides. The contract award to Dickerson was for delays and overcharging. Although the special verdict form submitted to the jury allowed for defect damages to be awarded in contract, the jury awarded them only on the joint negligence claim. P&P successfully moved to offset the negligence award by the subcontractor settlements to zero. Dickerson moved to correct this offset and to elect to receive the defect damages in contract. The trial court granted the remedy election, deemed the correction motion moot, and entered judgment, which still stated the negligence award was offset to zero.

1 The other defendants are P&P principals Frederick Perry, Jr., James Papenhausen, and James Papenhausen II, and Papenhausen Construction. Dickerson’s wife, Heidi Dickerson, was also a party, but successfully demurred to a breach of contract claim and dismissed her own claims.

2 In the first appeal, we reversed the remedy election because the jury’s special verdict did not support it, and remanded for further proceedings as the trial court determined were necessary and proper for judgment. We affirmed the judgment in all other respects. On remand, Plaintiffs moved to correct the settlement offset, for a new trial, and for judgment notwithstanding the verdict (JNOV). The court concluded our remittitur deprived it of jurisdiction for the motions and denied them. P&P moved for prevailing party status under Civil Code section 1717, which the court denied after finding there was no prevailing party. Plaintiffs appeal from the judgment after remittitur, and the parties separately appeal from the order

on prevailing party status.2 We conclude the trial court properly determined our remittitur did not provide jurisdiction to address Plaintiffs’ motions. We further conclude the court did not abuse its discretion by determining there was no prevailing party. The judgment and order are affirmed.

FACTUAL AND PROCEDURAL BACKGROUND3 I. Litigation Through Trial Dickerson entered into a contract with P&P to build the home in 2005, formed Paradiso in Terra LLC (Paradiso) in 2008, and at some point transferred ownership of the home to Paradiso. Plaintiffs filed suit against Defendants in 2009, and later added the subcontractors. The operative

2 On our own motion, we consolidate the appeals for purposes of decision. (See Hong Sang Market, Inc. v. Peng (2018) 20 Cal.App.5th 474, 481, fn. 1.)

3 We provide additional background in our discussion of the prevailing party determination, post. We also grant the parties’ requests to incorporate the record in the prior appeal by reference.

3 complaint included claims by Dickerson against P&P for breach of contract and breach of implied warranty, and a joint claim by Plaintiffs for negligence against Defendants and the subcontractors. There were also claims for fraud and negligent misrepresentation. Defendants filed a cross-complaint, which included a breach of contract claim against Dickerson for failure to pay certain amounts owed under the terms of the construction contract. The matter proceeded to trial in 2014. The trial court first held a bench trial to address Plaintiffs’ claim that P&P did not comply with certain licensing requirements, which would preclude their failure-to-pay claim. The court found P&P substantially complied. The case was then tried to a jury. At the outset, Plaintiffs’ counsel indicated they had settled with the remaining subcontractors; identified additional settlement amounts totaling $500,000; and raised the issue of whether Defendants would object to the good faith settlements. Defendants’ counsel indicated he could not make the decision at that time, noting in part that claim assignments needed valuation. On the allocations, counsel said, “So if what I’m hearing, $500,000, and . . . $300,000 is allocated over the concrete issues, $180,000 is allocated over the waterproofing issues, and $20,000 is allocated over to the tile issues.” Additional discussion ensued, during which the court confirmed the total subcontractor settlements were over $900,000. The court also addressed the claims, and encouraged the parties to address issues concerning ownership of the home; it appears no steps were taken, and no evidence was introduced to the jury as to when title transferred to Paradiso. After the close of evidence, the parties agreed Paradiso would only be a party on the joint negligence claim. The special verdict form provided to the jury listed substantially similar, but not identical, defects under Dickerson’s

4 contract claim and the Plaintiffs’ joint negligence claim. The jury was instructed “each item of damages may be awarded only once,” and Dickerson argued in closing that the amounts would be “offset and . . . figured out.” The jury returned its special verdict. It found Dickerson established a breach of contract and awarded damages of $160,000 for delays and overcharging, but indicated “0” for each defect category. It found Dickerson and Paradiso established negligence and awarded $675,428.02 for defect damages. The jury also found Dickerson liable to P&P for breach of contract and awarded damages of $535,000. II. Posttrial Proceedings In 2015, Defendants moved to set off the negligence award under Code of Civil Procedure section 877 by the subcontractor settlements, which

exceeded $972,000.4 The trial court granted the motion, reducing the negligence award to zero based on the settlements, and also offset the contract awards. During the hearing, the court and counsel discussed the settlements at length. Defendants’ counsel argued the plaintiff has the burden to explain allocations and there were none, stating: “We found three total allocations. And [they] really are rather meaningless . . . because, for the most part, all those issues went forward . . .

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