Walsh

Sergio Construction, Inc. (SCI) entered into a contract with West Valley Mission Community College District (District) to build a gymnasium on the college campus. The contract called for the gymnasium to be completed within one year. When that time elapsed and the gymnasium was not complete, the District terminated SCI’s contract. As a result, SCI brought this action against the District for breach of contract; the District in turn filed a cross-complaint against SCI.

The District’s cross-complaint was subsequently settled by SCI’s insurer and SCI’s bonding company, and the District filed a dismissal of the cross-complaint with prejudice. At trial, SCI moved for judgment on the pleadings, arguing that the District’s dismissal of its cross-complaint acted as a retraxit which precluded the District from contesting any of SCI’s allegations in the trial. The trial court denied the motion, and following a month-long trial, the jury returned a general verdict in favor of the District. Subsequently, the trial court granted the District its attorney fees of approximately $600,000. On appeal, SCI contends the trial court erred in denying its motion for judgment on the pleadings,…