Paykar Construction Inc. v. Spilat Construction Corp.

Plaintiff Paykar Construction, Inc. (Paykar), a subcontractor, sued defendant Spilat Construction Corporation (Spilat), the general contractor, for breach of contract and a common count for book account. The jury found that Spilat owed Paykar $259,813. The court entered judgment for Paykar in that amount and denied Spilat’s motion for judgment notwithstanding the verdict. Spilat appeals the denial of its motion, contending it is entitled to judgment in its favor as a matter of law based on several grounds arising from Paykar’s prior settlement with and judicial foreclosure action against the property owners and also based on the statute of limitations. We conclude that Spilat has not shown error and affirm the order.

Factual and Procedural Background

1. The Construction Subcontract

Spilat was the general contractor on a construction project owned by G. David Bedrosian and others. Paykar agreed to perform concrete work as a subcontractor under a contract with both Spilat and the owners, jointly and severally, dated May 25, 1990 (the subcontract). The subcontract provided for Spilat and the owners to make progress payments as Paykar completed the work. The total amount…