Client of The Mouzis Law Firm obtains $1.2 million judgement following jury verdict against private developer

In January, 2009, after a two-week trial and four hours of deliberation, a Riverside County Superior Court jury unanimously found in favor of Bedon Construction, Inc., a storm drain engineering contractor and client of The Mouzis Law Firm, on a breach of construction contract claim against K. Hovnanian Communities, Inc., the developer of a private residential construction project in Perris, California. Gerald W. Mouzis, founder of The Mouzis Law Firm, was the lead trial attorney for Bedon, who is based in Menifee, California.

The verdict was in excess of $843,000, consisting of approximately $327,000 in contract retention, $351,000 in mistakenly underbilled and unpaid time and material work, and a 2% per month penalty of approximately $165,000 for Hovnanian wrongfully withholding retention for more than 25 months. The jury also found against The Continental Insurance Company, Hovnanian’s payment bond surety, and Bond Safeguard Insurance Company, Hovnanian’s mechanic’s lien release bond surety, in proportionate amounts.

Following months of post-trial motions, the trial court upheld the verdict, and also awarded a total of approximately $375,000 in attorneys’ fees, pre-judgment interest and costs against Hovnanian, bringing Bedon’s total award to in excess of $1.2 million.