Mitzel

INTRODUCTION

Defendant and appellant Ralph Mitzel Inc. (Mitzel), a general contractor, appeals from a judgment after a court trial awarding its sub-subcontractor, plaintiff and respondent Superior Gunite (Superior), $413,177 in damages for breach of contract and negligence, $299,000 in attorney fees, $45,334 in prejudgment interest and $85,000 in costs. The court awarded Superior damages for its claim of Mitzel’s negligence and for claims assigned to Superior by Mitzel’s subcontractor, Pinnacle Concrete Construction (Pinnacle). Superior had entered into a sub-subcontract with Pinnacle and had no contractual privity with Mitzel. Pinnacle’s breach of contract claim assigned to Superior consisted of two elements: (i) Pinnacle’s claim for breach of the Mitzel-Pinnacle subcontract by Mitzel resulting in $7,015 in damages; and (ii) Superior’s claim for $406,163 in labor cost overruns caused by Mitzel’s acts and omissions.

Mitzel does not challenge the negligence award in favor of Superior, except as to the calculation of damages. The trial court used the same methodology to calculate Superior’s labor cost overrun damages at $406,163 under both the contract claim and the…