SBI Builders v. Hartford Fire Insurance CA6

I. INTRODUCTION

This case stems from the construction of an affordable apartment complex in San Jose. After the developer, San Jose 3rd Street Associates (3rd Street),1 engaged SBI Builders, Inc. (SBI) to build the apartment complex, disputes arose regarding the existence of contracts, the payment due to SBI, and the scope of SBI’s work on the apartment project. The litigation in this matter began when Largo Concrete, Inc., a subcontractor of SBI, filed a complaint alleging that SBI had failed to pay Largo for its work on the apartment project. SBI then filed a cross-complaint against 3rd Street and its associated general contractor, Pacific West Builders (PWB). 3rd Street and PWB both cross-complained against SBI. SBI settled Largo’s claims before the matter proceeded to a court trial on the cross-complaints.

Consistent with the trial court’s usage, we will refer to San Jose 3rd Street

Associates as 3rd Street. The judgment entered on February 5, 2018, incorporated the court’s statement of decision following the court trial, and provided, among other things, that (1) SBI is entitled to recover $585,372 from 3rd Street and PWB (which included $489,026 for the reasonable…