Don't listen to them, they are trying to take advantage of your unlicensed status. Even if you are unlicensed, your painting is of value, you billed them, they paid you, if they sue you for return of the money they would be getting a windfall and the law won't allow that. You are entitled to compensation, quantum meruit, the reasonable value of the services you provided, even if unlicensed.

Just remember that if any homeowners complain to the police and DA, you could be prosecuted for doing work that requires a license. Many counties are conducting stings to trap handymen who exceed their legal limits on charges. Get a contractors license or don't charge more than the handyman $500 max. If you get charged with that, feel free to contact me for the legal help you'll need.

I disagree with Mr. Tuann. As I understand current case law, if the work required a contractor's license and you didn't have one, they can sue you for all money paid regardless of whether you may have done competent work -- even if it results in a windfall for the customer.

Mr. Tuan is completely wrong, and would be committing malpractice if he had advised a client with what he said. I have been in construction law my entire career, and this has been a seesaw battle between the legislature and the courts for decades. Every few years the legislature would enact stronger versions of the "if you aren't licensed you don't get paid" rule, and a few years later cases would work up to the courts of appeal and they would find loopholes or other ways around it. Finally, however, the legislature passed a version that was so clear the courts finally got the message that windfall or not, the law of the state is that an unlicensed contractor cannot collect for work that required a license, and if anything had been paid, the owner could sue to get it back. You are going to lose this case. The owner has every legal right to all their money back. And if you push it and the CSLB finds out, you will probably find yourself disqualified from ever getting a license. So quit while you are behind and and stop doing unlicensed work.