United States For The Use Of Palmer Construction, Inc. v. Cal States Electric, Inc.

940 F.2d 1260 (9th Cir. 1991)

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Nature of the Case

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Facts

P entered into a prime contract with the U.S. Army Corps of Engineers. P then entered into a contract with D in which a portion of the work was subcontracted to D. The contract price for D's work was to eventually be $235,137. After completing a portion of the job, D breached. D had supplied some goods and services which the district court found to have a value of $204,845.26. Against the sum, P had already paid D a total of $114,758.98, and after D's breach P was required to expend the further sum of $126,673.56 in order to complete the work that D had contracted to do. P paid out a total of $241,432.54 in order to obtain a job that it had contracted to get from Palmer at a price of $235,137. P had suffered damages in the amount of $6,295.54. The district court so found. The district court then determined that since the value of P's work was $204,845.26, and it had only received $114,758.98, it was entitled to reimbursement for the rest of those services, less the 'damage' done to P. The result of that calculation, after also giving P prejudgment interest of $1,468.88, was a net sum due to D of $82,321.86 plus attorney’s fees. P appealed