Legal Question in Construction Law in California

Unlicensed Contractor

Can an unlicensed contractor sue to recover the actual out of pocket expenses for materials used on a job? i know that there can be no compensation for labor, im strictly asking about the actual costs of the materials. thanks!


Asked on 11/07/06, 5:34 pm

3 Answers from Attorneys

EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Unlicensed Contractor

Good Question!!! If the materials were furnished pursuant to a separate agreement, and sales tax on the marked up price was charged, you might(!!!) be able to collect for the materials. Otherwise, the cases seem to hold that a license is required to collect for labor and materials. Business & Professions code 7031 prohibits compensation for any "act" of an unlicensed contractor; in my opinion, the furnishing of material would be such an act.

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Answered on 11/08/06, 1:18 pm
Gary Redenbacher Redenbacher & Brown, LLP

Re: Unlicensed Contractor

Nope.

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Answered on 11/07/06, 5:54 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Unlicensed Contractor

There is a scattering of oddball cases from the Court of Appeal giving unlicensed contractors some breathing room, but the mainstream of decisions and the clear intent of the licensing law is that contracting without a license is a misdemeanor, perons who engage in it have no rights, and while they are seldom prosecuted, they aren't allowed to sue. Please distinguish this from the situation where an unpaid building-supply place may attempt to file and enforce a lien. In that case, you might be liable to the supplier (probably with a reight to recollect from the contractor), but even then the material supplier would have to adhere to the mechanic's lien laws including, probably, giving you a preliminary lien notice.

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Answered on 11/07/06, 11:38 pm


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