K2 Construction v. Anjani Investments
These consolidated appeals are taken from a judgment and various posttrial orders of the superior court adjudicating the parties' disputes arising out of the construction of a hotel in El Centro. Prior to the completion of the hotel, property owner Anjani Investments, Inc. (Anjani) terminated its contract with K2 Construction, Inc. (K2); K2 then served a bonded stop notice on Anjani's construction lender, Comerica Bank - America (Comerica), recorded a mechanic's lien against the property and filed this action against Anjani, Comerica and others. A jury awarded K2 $370,409 against Anjani and, in a bifurcated proceeding, the court found in K2's favor on K2's claim against Comerica to enforce the stop notice. The court entered a judgment that, inter alia, awarded K2 (1) damages of $370,409.00 and attorney fees of $798,023.00 against Anjani on the breach of contract claim and (2) the same amounts, plus an additional $114,978.94 in prejudgment interest, against Comerica on the stop notice claim. The judgment also provided that, except as to the prejudgment interest award, Comerica's liability was joint and several with Anjani and that Comerica's total liability on the stop notice claim was limited to $947,693.02.
Court find that there was no evidentiary support for (i) the judgment against Comerica on K2's stop notice cause of action and (ii) the jury's award of certain supervision costs and costs of certain subcontract work and materials and thus reverse the judgment as to those items. Court also conclude that the trial court erred in denying K2's motion for prejudgment interest against Anjani and taxing the bond premiums as an element of K2's costs and reverse the judgment and the court's posttrial orders so ruling. In all other respects, Court affirm the judgment and the orders.
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