Lee v. Cardiff
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Lee’s contract with Cardiff segregated the $231,500 price between the construction of a pool and spa ($88,400) and the construction of a pavilion, an outdoor kitchen, an outdoor fireplace, pavers, and other landscaping items ($143,000). Disputes arose and Cardiff left the project. Lee sued. The court largely rejected Lee’s claims pertaining to the pool construction, agreed with some of her claims pertaining to the pavilion and other landscaping items, and agreed that Cardiff had violated state contracting laws by hiring workers who were not licensed contractors and treating them as independent contractors for purposes of worker’s compensation. Based on that claim, the court ordered disgorgement plus interest ($238,470). It awarded contract and tort damages of $236,634, allocating $35,000 to deficiencies with the pool.
The contract did not have an attorney fees clause. The court declined to award discretionary fees under Code of Civil Procedure 1029.8, ruling Cardiff had not knowingly violated the state contractor licensing law and disgorgement was a sufficient penalty for that violation. The court ruled that because Lee was “unsuccessful on the vast majority of [her] swimming pool claims,” there was no prevailing party under Business and Professions Code 7168, which pertains to swimming pool construction contracts.
The court of appeal affirmed with respect to section 7168. None of the non-swimming pool projects can reasonably be categorized as part of “a contract for swimming pool construction.”
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