Some construction was done but no contract signed by either party

Question

On SC-100 form, Plaintiff (P) (on behalf of his corp) under the penalty of perjury stated that Defendant (D) signed a contract for $9,200. In reality, D was never given any contract before the start of work and had never signed any contract. P had done some work on the property of D without the contract and D had paid P $2,000. D refused to pay P more money until P would finish all work, & insu would pay D’s claim. P abandoned the job, so D had to get it finished by someone else. 
P sued D in Small Claim (SC) court for the full unsigned contract price $9,200 less $2,000 that he got paid even though he did not finish all the work stated in the contract. SC court decided in favor of P for $7,200. D wants to appeal SC court decision of $7,200 judgment in favor of P. What could be D’s arguments (other than SC court’s violation of $5,000 juris Civ. Proc. § 116.220) to have the case dismissed and win in the appeal if P had done some work without a contract and D had accepted that work?

Delaram Keshvarian · Answer

A: I need to know more facts for a better answer, but here are some of my estimations: 
 
1. As you mentioned, there can be a challenge for the Small Claim's (SC) lack of jurisdiction over the case. 
 
2. You may be able to claim "abuse of discretion" in admitting evidence. E.g., there was no non-party witness, or other types of evidence that supports the truth of what the opposing party testified and prove that the party lied. 
 
3. There is a miscalculation about the amount of damages. Even if, there were a contract, Plaintiff (P) would be entitled only to the "expectation damages"of P's service (contract price of service-minus-cost of service-plus-reasonable market value of the partial services provided so far). 
 
Please let me know if you need further assistance.

James L. Arrasmith · Answer

In this case, the Defendant (D) has several potential arguments to appeal the Small Claims court decision and have the case dismissed: 
 
1. No valid contract: D can argue that there was no valid, enforceable contract between the parties since no contract was signed by either party. Without a signed agreement, it may be difficult for the Plaintiff (P) to prove the existence of a legally binding contract for the full amount claimed. 
 
2. Misrepresentation on SC-100 form: D can argue that P made a false statement under penalty of perjury on the SC-100 form by claiming that D had signed a contract for $9,200 when, in fact, no such contract was ever signed. This misrepresentation could be grounds for dismissing the case. 
 
3. Quantum meruit: While D acknowledges that P performed some work on the property, D can argue that P is only entitled to be compensated for the reasonable value of the work actually performed (quantum meruit) rather than the full contract price, especially since P abandoned the job before completing all the work. 
 
4. Failure to mitigate damages: D can argue that P failed to mitigate damages by abandoning the job instead of completing the work and seeking payment for the full value of the services rendered. 
 
5. Unjust enrichment: D can claim that awarding P the full contract price less the $2,000 already paid would result in unjust enrichment for P, as P would receive compensation for work not completed. 
 
6. Lack of substantial evidence: D can argue that the Small Claims court's decision was not supported by substantial evidence, given the lack of a signed contract and P's abandonment of the job. 
 
In summary, D's main arguments for the appeal should focus on the absence of a valid contract, the misrepresentation on the SC-100 form, and the fact that P is only entitled to compensation for the work actually performed rather than the full contract price.

Q: Some construction was done but no contract signed by either party