Esparza v. PulteGroup CA4/1

CourtCalifornia Court of Appeal
DecidedMay 14, 2015
DocketD063736
StatusUnpublished

This text of Esparza v. PulteGroup CA4/1 (Esparza v. PulteGroup 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
Esparza v. PulteGroup CA4/1, (Cal. Ct. App. 2015).

Opinion

Filed 5/14/15 Esparza v. PulteGroup 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NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SINOEH ESPARZA et al., D063736

Plaintiffs and Appellants,

v. (Super. Ct. Nos. 37-2007-0055233-CU-BC-CTL, PULTEGROUP, INC. et al., 37-2011-00098675-CU-BC-CTL)

Defendants, Cross-complainants, and Appellants,

MJB HEATING AND AIR CONDITIONING, INC.,

Defendant, Cross-defendant, and Appellant,

MACORD CONSTRUCTION CORP.,

Defendant, Cross-defendant, and Respondent.

SINOEH ESPARZA et al., D064278

Plaintiffs and Respondents,

v. PULTEGROUP, INC. et al.,

Defendant, Cross-defendant, and Appellant.

CONSOLIDATED APPEALS from judgments and orders of the Superior Court of

San Diego County, Ronald L. Styn, Judge. Affirmed in part and reversed in part with

directions.

Kaloogian & Fuselier, Lowell Robert Fuselier and David T. Hayek for Plaintiffs,

Respondents and Cross-appellants.

Richard R. Sooy & Associates and John K. Schlichting for Appellants PulteGroup,

Inc., and Centex Homes in No. D063736.

Sooy & Schlichting, John K. Schlichting; McKenna Long & Aldridge, Charles A.

Bird and Stefanie Warren for Appellants PulteGroup, Inc., and Centex Homes in

No. D064278.

Braden, Hinchcliffe & Hawley and Everett Hinchcliffe for Appellant and

Respondent MJB Heating & Air Conditioning, Inc., a dissolved corporation.

Everett L. Skillman; Bremer, Whyte, Brown & O'Meara, Vik Nagpal and Orchid

Barzin for Respondent Arch Specialty Insurance Company, on behalf of Macord

Construction Corporation, a suspended corporation.

2 Plaintiffs Sinoeh Esparza, Gayelea Esparza, Cailla Esparza, and Sinoeh Esparza,

Jr., brought this construction defect and personal injury action against their homebuilder,

Centex Homes (Centex), and several subcontractors, including MJB Heating and Air

Conditioning, Inc. (MJB) and Macord Construction Corporation (Macord).1 Centex

cross-complained against MJB and Macord, among others.

Following a jury trial, as relevant to this appeal, the court entered judgments

generally in favor of the Esparzas on their claims against Centex, and against Centex on

its cross-claims against MJB and Macord. The court granted MJB's motion for attorney

fees against Centex, and Macord's motion seeking the same relief was denied. The

Esparzas, Centex, MJB, and Macord appeal on various grounds. As we will explain, we

conclude three issues raised by the parties have merit: (1) the court erred by granting a

partial new trial on the Esparzas' damages on the ground the jury's damage awards were

inconsistent and irreconcilable, (2) the court erred by denying Macord's motion for

attorney fees against Centex, and (3) the court erred in calculating MJB's attorney fees by

making the same deduction twice. We conclude the remaining issues raised by the

parties either have no merit or are moot in light of our disposition of other issues.

1 The naming conventions in this opinion require some explanation: To avoid confusion, we will generally refer to the individual Esparzas by their first names only. Sinoeh and Gayelea are the parents of Cailla and Sinoeh, Jr. (hereafter Junior). While this litigation was pending, Centex merged into PulteGroup, Inc. (PulteGroup). Our references to Centex in this opinion include PulteGroup where appropriate. Because Macord is a suspended corporation, Arch Specialty Insurance Company (Arch) intervened on its behalf. (See Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc. (2006) 136 Cal.App.4th 212, 217; see also Rev. & Tax. Code, § 19719, subds. (b) and (c).) Our references to Macord in this opinion include Arch where appropriate. Arch continues to represent Macord's interests in this appeal. 3 FACTUAL AND PROCEDURAL BACKGROUND

In February 2005, Sinoeh and Gayelea Esparza contracted with Centex to purchase

a newly-constructed house on Shadetree Drive in San Marcos, California. The Shadetree

house was part of a residential subdivision developed by Centex. Centex employed

subcontractors to construct the houses in the subdivision. One subcontractor, MJB,

performed heating, ventilation, and air conditioning work. Another subcontractor,

Macord, installed drywall. During construction of the Shadetree home, two water

intrusion events occurred. One event was caused by a job superintendent's failure to

place chimney caps on the roof.

During escrow, Centex disclosed one instance of water intrusion at the Shadetree

house. Centex gave the Esparzas the opportunity to cancel the purchase. The Esparzas

were concerned about water intrusion, but a Centex representative assured them the

Shadetree house was as good as new. Centex claimed to have restored and dried the

home properly, although the restorer did work only on the first floor of the house. The

Esparzas decided not to cancel the purchase.

At the final walkthrough before close of escrow, the Esparza observed numerous

problems with the Shadetree house. Centex decided to cut the walkthrough short and do

further repairs. The Esparzas wanted to delay closing, but a Centex representative told

the Esparzas they would lose their deposit if closing did not occur as scheduled. The

representative's statements did not reflect Centex policy, which would have allowed the

Esparzas to delay closing without losing their deposit. Because of the representative's

4 statements, however, the Esparza decided to continue with the purchase. Had the

Esparzas known they could cancel the purchase without losing their deposit, they would

not have proceeded to closing.

Another final walkthrough occurred a week later. Numerous aspects of the house

remained incomplete, but a Centex representative said everything would be fixed within

two weeks. Escrow closed that day. The purchase price of the house was $737,780, not

including $15,000 in incentives the Esparza received from Centex.

After the Esparzas occupied the house, they noticed additional items missing or in

need of repair, including drywall, kitchen and bathroom plumbing, electrical systems,

tile, cabinets, carpeting, fixtures, and appliances. Centex undertook efforts to fix these

issues, but the repair work created additional problems. For example, work on drywall in

the home produced substantial amounts of dust. Workers did not properly contain this

dust, and it spread through the house. A large amount of dust accumulated in Cailla's

room, in closets and on clothes, and on the Esparzas' beds.

In some places, including the Esparza's kitchen nook area, multiple rounds of

repair work were required. Centex apologized for the extensive repair work. During one

additional round of drywall repairs in the kitchen nook area, the workers placed

protective plastic but it did not stay in place. Carpet and furniture were left unprotected.

Even after the bulk of the repair work was completed, some issues remained.

Plumbing work continued for another year, and a heating vent and duct were discovered

5 to be disconnected some time later.

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