Judge Jill Feeney, Case Number: 23STCV12351, Date: 2024-03-01 Tentative Ruling

This is an action for breach of contract and negligence. Plaintiff alleges that he entered into a written contract with Defendant Javier Navarro to remodel Plaintiff’s pool. Plaintiff entered into an oral contract with Defendant Roberto Martinez Armas, who was to provide concrete for the project, perform concrete related work, and build a sunken fire pit around the pool. Although Plaintiff paid the full balance of the contracts, both Navarro and Armas both abandoned the project before completion and performed defective work.

Plaintiff alleges that he hired Navarro and Armas to remodel his pool for $61,950. (Glajyan Decl., Exh. A.) Navarro abandoned work on his pool, broke a drainpipe, installed a pool pump connection incorrectly, and failed to replace copper pipes. (Id., ¶8.) Armas failed to install concrete rebar, causing the fire pit he built to begin falling apart. (Id., ¶9.) Plaintiff sought disgorgement of all funds paid to Navarro and Armas. (Compl., p.6.)

Plaintiff seeks disgorgement of the funds he paid to Navarro and Armas under Bus. & Prof. Code, section 7031. The section provides that if a plaintiff engaged an unlicensed contractor, a contractor’s license was required to perform the services sought, and the plaintiff paid the contractor for his services, the plaintiff may bring an action to recover all compensation for these services.

Bus & Prof. Code, section 7026 provides that a contractor is any person who undertakes to or offers to undertake to construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, parking facility, railroad, excavation or other structure, project, development, or improvement, among other things. All contractors to whom licenses are issued shall be classified by the Registrar as a specialty contractor, a general engineering contractor, or general building contractor. (Cal. Code of Regulations, section 830.) California issues C-53 licenses to swimming pool contractors who construct swimming pools, spas, or hot tubs. (Cal Code of Regulations, section 832.53.) California issues a C-8 license for contractors performing concrete work. (Cal. Code of Regulations, section 832.08.)

Here, Plaintiff alleges that he paid Navarro and his associates $58,350 by check and Zelle. (Galajyan Decl., ¶4.) Plaintiff alleges he paid Armas $4,100 by check. (Id., ¶5.) Plaintiff also paid $2,000 to both Navarro and Armas which they divided. (Id., ¶5.) Plaintiff provides various printouts of checks and Zelle transactions showing Plaintiff made $10,300 in Zelle transfers and $47,950 in checks payable to Navarro and $4,100 in checks payable to Armas. (Id., Exh. B.) The records show that Plaintiff paid Navarro $58,250 and paid Armas $4,100. Plaintiff’s testimony shows he paid the both of them $2,000. In total, Plaintiff paid $64,350 to Navarro and Armas.

Plaintiff hired Navarro and Armas to demolish the existing swimming pool surface, install other structures, demolish a planter, install a new gas line, install a new water feature, and make other improvements to Plaintiff’s swimming pool and surrounding features. (Glajyan Decl., Exh. A.) Plaintiff hired Armas to provide concrete-related work and build a fire pit around the pool. (Id., ¶3.) Neither Defendant held any type of contractor license. (Id., ¶¶11-12.) Because Navarro and Armas undertook to make improvements to a swimming pool and perform concrete work, they were required to have C-53 and C-8 licenses respectively. Plaintiff paid Navarro and Armas for their services. Plaintiff meets the requirements of Bus. & Prof. Code, section 7031. Therefore, Plaintiff is entitled to disgorgement of the funds he paid to Navarro and Armas. The demand for $64,350 in damages paid to Navarro and Armas is granted.

Damages awarded to an injured party for breach of contract seek to put the plaintiff in as good a position as he or she would have occupied if the defendant had not breached the contract. (Lewis Jorge Construction Management, Inc. v. Pomona Unified School Dist. (2004) 34 Cal.4th 960, 967.) For the breach of an obligation arising from contract, the measure of damages, except where otherwise expressly provided by this Code, is the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which, in the ordinary course of things, would be likely to result therefrom. (Civ. Code, section 3358.) The injured party’s damages cannot exceed what it would have received if the contract had been fully performed on both sides. (Civ. Code, section 3358.)

Here, the invoice from Navarro’s company states the original contract price was $61,950. (Galajyan Decl., Exh. A.) Plaintiff alleges that he spent $39,395 to repair and supplement Defendants’ work on the pool. (Id., ¶10.) Plaintiff provides printouts of an invoice, checks, and Zelle transactions which total $39,395. (Id., Exh. C.)

Had Defendants not breached the contract, Plaintiff would have had a remodeled pool for the contract price of $61,950. Here, the Court has already awarded Plaintiff disgorgement of the funds paid to Navarro and Armas. The cost of repairing the pool and completing the remodel did not exceed the amount Plaintiff expected to pay to remodel the pool. Although Plaintiff alleges that the fire pit installed by Armas is crumbling, Plaintiff provides no evidence of the cost to repair the fire pit or the value of the fire pit if it had been constructed correctly compared to its current value. Plaintiff does not allege that he suffered any other consequential damages as a result of Defendants’ breach. Plaintiff is not entitled to double recovery for the same damage. Therefore, Damages are limited to disgorgement of $64,350.

Plaintiff paid Armas and Navarro separately except for the $2,000 payment the two divided amongst themselves. Thus, although the total judgment is $64,350, Armas’ separate liability is limited to $4,100 and Navarro’s separate liability is limited to $58,250. Armas and Navarro are jointly and severally liable for the remaining $2,000. Plaintiff must amend item 7 of form JUD-100 to reflect these amounts.