Procedural Posture
Appellant subcontractor challenged the judgment of the Superior Court of Santa Barbara County (California), which awarded damages to respondent contractor on respondent's cross-complaint in appellant's action for breach of contract. Appellant alleged that respondent was barred from recovery pursuant to Cal. Bus. & Prof. Code § 7031, since respondent did not have a contractor's license at the time their construction contract was entered into. Non-criminal matters are resolved in civil court. Choosing the correct civil Trial attorney for your claim.
Overview
A month after appellant subcontractor and respondent contractor entered into a contract, a contractor's license was issued to respondent. Five months into the contract, respondent ordered appellant to stop performance. Appellant brought a breach of contract action, and respondent cross-complained for damages it allegedly incurred since appellant did not perform properly. Respondent was awarded damages after appellant's complaint was dismissed for the failure to answer interrogatories. On appeal, appellant alleged that respondent was barred from recovery since it did not have a contractor's license pursuant to Cal. Bus. & Prof. Code § 7031, at the time of the contract. The court affirmed the award of damages to respondent. The court held that respondent was licensed "at all times during the performance" of the contract as was required by § 7031; respondent was unlicensed only during the first month and was not called upon to perform any contracting services during that period. The court ruled that during the performance for which compensation was sought and received, respondent was in fact licensed.
Outcome
The court affirmed the award of damages to respondent contractor since respondent was licensed at all times during the performance of the construction contract with appellant subcontractor. Respondent was unlicensed only during the first month of the contract and was not called upon to perform any contracting services during that period. During the performance for which compensation was sought and received, respondent was in fact licensed.
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