Valerio v. Andrew Youngquist Construction

In Valerio v. Andrew Youngquist Construction (2002) 103 Cal.App.4th 1264, a general contractor asserted claims against a subcontractor for breach of contract and quantum meruit. (Id. at pp. 1266-1267.) The subcontractor admitted the existence of a written contract in its answer and in discovery. (Id. at p. 1268.) The subcontractor never formally sought to set aside the admissions, but argued at the end of the bench trial that he should have done so. (Id. at pp. 1268-1270.) The trial court disregarded the admissions, found there was no written contract, and entered a judgment in favor of the general contractor on the basis of quantum meruit; in addition, the trial court denied the general contractor's motion for a new trial. (Id. at pp. 1270-1271.) The appellate court reversed the ruling on the new trial motion, as the trial court's denial of contract-based damages could not be reconciled with the admissions and the subcontractor had never formally sought to set them aside. (Id. at pp. 1271-1274.)