Picerne Construction Corp. v. Castellino Villas

244 Cal. App. 4th 1201, 199 Cal. Rptr. 3d 257, 2016 Cal. App. LEXIS 121
CourtCalifornia Court of Appeal
DecidedFebruary 18, 2016
DocketC071197
StatusPublished
Cited by19 cases

This text of 244 Cal. App. 4th 1201 (Picerne Construction Corp. v. Castellino Villas) 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
Picerne Construction Corp. v. Castellino Villas, 244 Cal. App. 4th 1201, 199 Cal. Rptr. 3d 257, 2016 Cal. App. LEXIS 121 (Cal. Ct. App. 2016).

Opinion

Opinion

MAURO, J.

Picerne Construction Corp. (Picerne) agreed to build an apartment complex for Castellino Villas, A K.F. LLC (Castellino). After construction started, Castellino refinanced the property, replacing the original lender with Bank of the West. Picerne subsequently claimed money due, recorded a mechanic’s lien, and brought this action against Castellino and Bank of the West to foreclose on the lien. Following a bench trial, the trial court entered judgment in favor of Picerne.

Castellino now contends (1) Picerne does not have a valid mechanic’s lien because it did not record its claim within 90 days after substantial completion of the project; (2) the doctrine of judicial estoppel prevents Picerne from taking contrary positions at arbitration and at trial; (3) Picerne did not timely record a claim of mechanic’s lien as to nine distinct buildings within the project; and (4) the trial court erred in calculating the amount of the lien.

Bank of the West agrees that Picerne failed to timely record its claim of mechanic’s lien. In addition, Bank of the West contends (5) that Picerne’s complaint against it is time-barred because Picerne did not name Bank of the *1205 West as a defendant in the original complaint even though it was aware of facts indicating it had a claim against the bank.

We conclude (1) Picerne timely recorded its mechanic’s lien; (2) Castellino fails to demonstrate the applicability of judicial estoppel; (3) the property constituted one residential unit; (4) the trial court overstated the principal sum due and failed to subtract the $115,453.50 setoff from the principal sum, but the other claims of error with regard to the lien amount have no merit; and (5) the action against Bank of the West is not time-barred because Picerne timely substituted Bank of the West in place of a Doe defendant when Picerne learned of the bank’s interest in the property.

We will modify the judgment to provide that the mechanic’s lien is in the amount of $2,416,855.06 and affirm the judgment as modified.

BACKGROUND

Castellino and Picerne entered into an agreement in which Picerne would build an apartment complex called Castellino Villas at Laguna West (project or property) in the City of Elk Grove (the City). The project consisted of 11 apartment buildings, separate garages, a clubhouse, and other facilities.

Erich Kopple and John Olsen were the owner’s representatives for the project. Aaron Schein was in charge of the project for Picerne. Picerne employee Scott Wiggins was the assistant superintendent.

The City issued certificates of occupancy for the 11 buildings within the project in 2006, after a city inspector conducted a final inspection of each building. The first certificates of occupancy were issued on May 3, 2006. The final certificate of occupancy was issued on July 25, 2006. Castellino did not release the project retention proceeds, which was 10 percent of each progress payment, to Picerne when the City issued the certificates of occupancy.

Picerne employees and subcontractors continued to perform work at the project after July 25, 2006, and after Picerne removed its trailer from the jobsite. Superintendent’s daily job reports maintained by Picerne employees showed that work was performed at the project after July 25, 2006. Wiggins worked at the project the entire month of August 2006.

Olsen signed a document accepting building numbers 1, 3, 4, and 6 through 11 for Castellino on August 28, 2006. At that time, Wiggins created a punch list of work still to be completed. The punch list included work within the original scope of Picerne’s contract with Castellino, such as the installation of grip tape on stair treads. The plans for the project called for the *1206 installation of “contrasting color warning stripe” on all concrete stair treads. “Contrasting color warning stripe,” also known as grip tape, is an anti-slip tape applied to a stair tread and is required for safety purposes.

Olsen signed a document titled “Owner’s Acceptance of Site” for Castellino on September 8, 2006. As of that date, work on building numbers 2 and 5 had been completed.

Kopple testified Olsen was a “maintenance person” who did not have authority to sign any acceptance for Castellino. But the trial court found Kopple’s denial not credible. The trial court credited Wiggins’s testimony that Olsen was authorized to sign the owner’s acceptance for Castellino. Wiggins testified Olsen placed a telephone call to Kopple to discuss the “Owner’s Acceptance of Site.” And Olsen told Wiggins that Kopple gave Olsen permission to sign the acceptance.

Although Castellino had accepted the site, grip tape had not been installed on all the stair treads at the project. An installer employed by Picerne’s stairway subcontractor installed grip tape on every staircase of every building at the project on September 15, 18, and 19, 2006. The installer worked a total of 22 and a half hours on those dates to accomplish that task.

Picerne’s roofing subcontractor also performed roofing work at the project after July 25, 2006. That work included installing ridges, rakes, and hips, waterproofing roof penetrations, and straightening out some of the valleys in the roofs. Some of that work was within the original scope of the subcontractor’s contract and was not repair work.

Castellino began renting apartments at the property in October 2006. There were no tenants at the property prior to that time. Picerne asked Castellino to release the project retention proceeds in October 2006.

Picerne recorded a claim, of mechanic’s lien on November 28, 2006. Picerne’s claim included the amounts owed to its subcontractors, Teichert & Son, Inc. (Teichert), American Automatic Fire Protection, Inc., Contractors Door and Millwork, Inc., Hemington Landscape Services, Inc., and Mitchell Jones Concrete, Inc., each of whom separately recorded a mechanic’s lien claim against the property.

Picerne filed a complaint to foreclose its mechanic’s lien on December 29, 2006. The complaint named Castellino and Doe defendants.

Castellino recorded a notice of completion for the project on April 30, 2007. The notice stated the project was completed on April 20, 2007.

*1207 The action was stayed in the trial court to permit Castellino and Picerne to arbitrate their claims and counterclaims, in accordance with the terms of their contract. The arbitration included the parties’ claims relating to Siena Villas Apartments, an apartment complex project for which Picerne entered into a contract with Campbell Comers Limited Partnership I (Campbell), an entity which was related to Castellino. The arbitrator awarded Picerne damages in the amount of $2,484,105.20 on the two projects, and over $1.5 million in attorney’s fees and costs. The trial court subsequently confirmed the arbitration award and gave Picerne an additional $144,836.15 in prejudgment interest.

Castellino and Campbell then filed separate petitions for relief under chapter 11 of the Bankruptcy Code.

Castellino, Campbell, and other parties entered into a settlement agreement with Picerne on August 13, 2010.

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Cite This Page — Counsel Stack

Bluebook (online)
244 Cal. App. 4th 1201, 199 Cal. Rptr. 3d 257, 2016 Cal. App. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/picerne-construction-corp-v-castellino-villas-calctapp-2016.