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The plaintiffs appealed a judgment in favor of the defendant on a cross-complaint for damages for breach of an excavation and grading contract. The contract was divisible and the doctrine of substantial performance was applicable. The plaintiffs breached the contract by hiring others to do street improvement work and not paying the defendant for grading work done when due, which excused further performance by the defendant. The defendant completed 98% of the work and was prevented from completing the rest due to plaintiffs' fault. Therefore, the defendant can recover for the work done under the first phase of the contract. The trial court awarded the defendant reasonable attorney's fees of $4,000, as provided in the contract.
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