Procedural Posture

Plaintiffs, a developer and a realty company, sought review of an order from the Superior Court of Los Angeles County (California) awarding judgment to defendant parking corporation on its cross-complaint in a breach of contract action. Defendant sought review of an order from the same court reducing the amount of its damages.

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Overview

Plaintiffs, a developer and a realty company, filed a declaratory judgment action against defendant parking corporation, alleging that defendant breached an agreement providing for the construction of a parking deck. Defendant filed a cross-complaint against plaintiffs. The trial court awarded judgment to defendant. However, on new trial motions by plaintiffs, the trial court reduced the amount of damages awarded to defendant. Plaintiffs appealed the judgment against them, and defendant appealed from the reduced judgment in its favor. The court affirmed the trial court’s judgment in all respects except to the extent that it reduced the amount of damages awarded to defendant. The court found that the trial court did not reduce the amount of damages awarded to defendant on such terms as could be just. The court explained that there need not be an entire new trial on the issue of damages. On remand, the only issue to be tried was the expected profits from the parking garage operation. The court further found that plaintiffs’ appeal had no merit.

Outcome

The order awarding judgment to defendant parking corporation on its cross-complaint against plaintiffs, a developer and a realty company, was affirmed. However, the order reducing the amount of damages awarded to defendant was reversed and remanded because the trial court did not reduce the amount of damages on such terms as could be just.