Elite Construction Custom Homes of Appleton, LLC v. Bee Moua

CourtCourt of Appeals of Wisconsin
DecidedNovember 10, 2020
Docket2019AP001734
StatusUnpublished

This text of Elite Construction Custom Homes of Appleton, LLC v. Bee Moua (Elite Construction Custom Homes of Appleton, LLC v. Bee Moua) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elite Construction Custom Homes of Appleton, LLC v. Bee Moua, (Wis. Ct. App. 2020).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. November 10, 2020 A party may file with the Supreme Court a Sheila T. Reiff petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2019AP1734 Cir. Ct. No. 2018CV125

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT III

ELITE CONSTRUCTION CUSTOM HOMES OF APPLETON, LLC,

PLAINTIFF-RESPONDENT,

V.

BEE MOUA,

DEFENDANT-APPELLANT.

APPEAL from a judgment of the circuit court for Outagamie County: MITCHELL J. METROPULOS, Judge. Affirmed and cause remanded with directions.

Before Stark, P.J., Hruz and Seidl, JJ.

Per curiam opinions may not be cited in any court of this state as precedent

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3). No. 2019AP1734

¶1 PER CURIAM. Bee Moua appeals a judgment that awarded Elite Construction Custom Homes of Appleton, LLC, $8,685 in damages and $6,752.50 in attorney fees and costs. Moua argues the circuit court erred by: (1) awarding attorney fees to Elite; (2) awarding damages to Elite under the parties’ mediation agreement; and (3) concluding Elite did not fail to mitigate its damages. We reject each of Moua’s arguments and affirm.

¶2 In addition, we conclude Elite is entitled to recover the attorney fees that it incurred in connection with this appeal. We therefore remand this matter for the circuit court to determine the amount of additional attorney fees that Elite is entitled to recover and to amend the existing judgment to include that amount.

BACKGROUND

¶3 In June 2017, Elite agreed to complete remodeling and other construction services at Moua’s residence. The parties’ agreement was memorialized in two written documents: (1) a Homeowner/Contractor Agreement that was required for Moua to obtain a mortgage from Finance of America (the FOA contract); and (2) an Elite Construction Custom Homes of Appleton, LLC Contract (the construction contract).

¶4 As relevant to this appeal, the FOA contract provided: “With respect to the scheduled completion of the work, time is of the essence.” The construction contract, in turn, stated: “Should litigation be necessary to enforce Elite Construction’s rights arise [sic] under the terms of this Contract, Customers agree to pay Elite Construction’s reasonable attorneys’ fees and expenses.”

¶5 Elite provided labor and materials for the remodeling project at Moua’s property. However, disputes arose regarding the quality and timeliness of

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Elite’s work. Moua therefore terminated the contracts in December 2017 and refused to pay the balance of the contract price.

¶6 In February 2018, Elite filed the instant lawsuit against Moua, asserting claims for breach of contract and unjust enrichment. Moua subsequently asserted counterclaims for breach of contract, breach of warranty of fitness for a particular purpose, professional negligence, and violations of the Wisconsin Administrative Code.

¶7 The parties ultimately mediated their dispute and entered into a mediation agreement dated August 31, 2018. The mediation agreement stated that on or before October 12, 2018, Elite was required to “complete the remodeling project at [Moua’s property] in accordance with the contract documents, which includes [the FOA contract], and in accordance with the scope of work identified in the [construction contract].” The agreement specified that the work Elite was required to complete included, but was not limited to, “installation of remaining flooring in the dining room and living room of the property … and installation of countertop materials and baseboard trim.”

¶8 The mediation agreement further provided that Elite was entitled to “total remaining disbursements of $14,970.00 from the funds held in the Finance of America Mortgage Company escrow account for Bee Moua.” The agreement required Moua to “cooperate with Elite … and its efforts to make draws from the subject escrow account during the course of completion of the foregoing work.”

¶9 After the parties signed the mediation agreement, Elite took the position that it would not perform the remaining work until a third draw was paid for work that had already been completed. It is undisputed that Moua did not release the funds for that third draw until October 3, 2018.

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¶10 On the same day, Elite’s managing member, Jared Schmidt, met with Moua. Schmidt asserts that during that meeting, Moua “demand[ed] that Elite … perform additional work on the residence beyond that agreed to in the Mediation Agreement.” Schmidt claims he therefore “prepared a punch list of work that needed completing in order to ensure that the parties agreed on the outstanding work.” Based on Moua’s comments during the October 3 meeting, Schmidt believed Moua “did not intend to make payment upon [Elite’s] completion of the punch list.” Schmidt therefore refused to perform any additional work on the project until Moua approved the punch list in writing.

¶11 Elite’s attorney filed the proposed punch list with the circuit court on October 5, 2018, and also provided a copy to Moua’s attorney. On October 12— the deadline by which the mediation agreement required Elite to complete its work—Moua’s attorney emailed Elite’s counsel approving the punch list. Moua contends, however, that counsel did so without his permission.

¶12 Elite arrived at Moua’s property on October 12 and finished installing the flooring in the living and dining rooms, as required by the mediation agreement. As noted above, the mediation agreement also required Elite to install countertops. The countertops needed to be installed on top of kitchen cabinets. However, on the evening of October 11, Moua and his roommate had moved the kitchen cabinets out of Moua’s house and placed them in the garage. Schmidt testified that when he asked Moua where the cabinets were on October 12, Moua told him the cabinets were “not here” and had been “moved off site.”

¶13 In contrast, Moua testified he told Schmidt on October 12 that the cabinets were “in storage,” but he never used the term “off site” and he never stated the cabinets were not on the property. Moua testified he moved the cabinets into

4 No. 2019AP1734

the garage to free up space for Elite to complete its other work. Moua also testified that the cabinets were “very accessible,” and it would have taken only a few minutes to move them into the kitchen from the garage.

¶14 Elite did not complete its work by the October 12 deadline set forth in the mediation agreement. Elite blames its failure to do so on Moua’s actions— specifically, his delay in approving the punch list and paying the third draw, as well as his “hiding” the cabinets in the garage “to prevent Elite from completing the scope of work.” Moua, in turn, asserts that the mediation agreement did not require him to pay the third draw or approve a punch list before Elite began its work. In addition, Moua contends that even if he had not moved the cabinets into the garage, Elite would have been unable to finish all of the required work on October 12.

¶15 On October 13, 2018, Moua fired Elite via email, on the grounds that Elite had failed to complete the required work by the October 12 deadline. Moua’s email therefore stated that Elite’s services were “no longer accepted and [were] prohibited on [Moua’s] property.”

¶16 Elite subsequently moved to enforce the parties’ mediation agreement, requesting the right to enter Moua’s property to complete the required work.

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Bluebook (online)
Elite Construction Custom Homes of Appleton, LLC v. Bee Moua, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elite-construction-custom-homes-of-appleton-llc-v-bee-moua-wisctapp-2020.