Hale v. Big H Construction, Inc.
288 P.3d 1046
Utah Ct. App.2012Background
- Hales hired Big H to construct two cost-plus custom homes with a 10% builder’s fee and paid many subcontractors directly.
- Big H filed a $165,000 mechanics’ lien on Lot 45; Hale sued for breach of contract and Big H counterclaimed for nonpayment.
- The project involved 47 subcontractors; some costs were paid directly by the Hales; tensions led Big H to leave the job in 2004.
- Court-ordered damages: Big H awarded $172,100 builder’s fee, $94,463 prejudgment interest, and $342,240.84 in attorney fees and costs; new-trial motions denied.
- Trial court relied on Big H’s invoices, a cost-tracking spreadsheet, and expert testimony; Hale credibility findings undermined Hale and expert witnesses.
- Court acknowledged potential clerical error in a separate minute entry but did not alter final judgment; Hale appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the damages were properly calculated from costs incurred | Hales argue damages should be based only on actual expenditures, not estimates | Big H relied on invoices, payment records, and cost estimates per Traco | No reversible error; costs may be proved with documentary evidence and reasonable estimates per Traco. |
| Whether inclusion of land cost in the builder’s fee violated the Act | Cost of Lot 45 cannot be part of a builder’s fee under the Licensing Act | Cost of land was a cost, not a real estate commission; fee based on costs plus 10% | Not reversible; issue inadequately briefed or waived under rule 8(c). |
| Whether Hale is entitled to an offset for unfinished punch-list items | Punch-list repairs valued >$73,000 should offset the award | Trial court found substantial compliance and unreliable expert estimates; no offset | No reversible error; no clear error in findings of substantial completion. |
| Whether James Horsley had actual or apparent authority to accept $30,000 | Hales paid James Horsley; argued he had authority to receive builder’s fee | Trial court found no actual or apparent authority; James Horsley used funds for personal venture | No reversible error; authority findings supported by record. |
| Whether Big H violated the Mechanics’ Lien statute | Lien was inflated beyond amount due; abuse of lien right | Lien reflected amounts due and court weighed evidence; no abuse | Lien valid; no abuse of lien; mechanics’ lien claim affirmed. |
Key Cases Cited
- Traco Steel Erectors, Inc. v. Comtrol, Inc., 2009 UT 81 (Utah 2009) (damages evidence may include estimates if supported by documentation)
- Wasatch Oil & Gas, LLC v. Reott, 2011 UT App 152 (Utah Ct. App. 2011) (measure of damages not at issue; context for damages formula)
- Sachs v. Lesser, 2008 UT 87 (Utah 2008) (statutory interpretation of real estate commissions)
- ProMax Dev. Corp. v. Mattson, 943 P.2d 247 (Utah Ct. App. 1997) (standard for reviewing trial court findings on appeal)