A homeowner (Hooker) sued a contractor (Nguyen) for $250,000 in damages over a salon construction project. The trial court ruled in the contractor's favor, but the appeals court reversed the decision. The court found that the homeowner had materially breached the contract first, which excused the contractor from performing and eliminated the homeowner's right to sue. The court also rejected the homeowner's fraud claims because they were improperly mixed with contract claims.
If a customer materially breaches the contract first, they lose the right to sue you for breach—document all breaches in writing immediately
Keep fraud claims completely separate from contract disputes; mixing them confuses the legal issues and can get your case dismissed or reversed
Get everything in writing: the bid, contract, change orders, and lien waivers—this case involved four separate documents which created confusion and litigation