A framing contractor, Almos Dezsi, brought an action to perfect a construction lien against homeowners Angela and Peter Walker for unpaid work.
The Walkers counterclaimed for damages due to alleged construction deficiencies, primarily excessive floor squeaking, and project delays.
The court found that the contractor fundamentally breached the contract by improperly installing joist hangers, causing significant floor squeaking, and by refusing to correct deficiencies without full payment.
While the contractor's lien claim was dismissed, the homeowners' damages were substantially reduced due to their failure to reasonably mitigate losses by not completing all necessary repairs when the house was still under construction.
The homeowners were awarded limited damages for specific deficiencies and interest on their posted security.