{"id":2324,"date":"2021-10-25T03:57:28","date_gmt":"2021-10-25T03:57:28","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=2324"},"modified":"2022-05-09T20:38:13","modified_gmt":"2022-05-09T20:38:13","slug":"caci-4560-recovery-of-payments-to-unlicensed-contractor-essential-factual-elements-bus-prof-code-%c2%a7-7031b","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4560-recovery-of-payments-to-unlicensed-contractor-essential-factual-elements-bus-prof-code-%c2%a7-7031b\/","title":{"rendered":"CACI 4560 Recovery of Payments to Unlicensed Contractor\u2014Essential Factual Elements (Bus. &#038; Prof. Code, \u00a7\u20097031(b))"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3h16o7-a1d6894da0f88e6a67a66f60c3eeb793\">\n#top .av-special-heading.av-kv3h16o7-a1d6894da0f88e6a67a66f60c3eeb793{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv3h16o7-a1d6894da0f88e6a67a66f60c3eeb793 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv3h16o7-a1d6894da0f88e6a67a66f60c3eeb793 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv3h16o7-a1d6894da0f88e6a67a66f60c3eeb793 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4560 Recovery of Payments to Unlicensed Contractor\u2014Essential Factual Elements (Bus. <span class='special_amp'>&amp;<\/span> Prof. Code, \u00a7\u20097031(b))<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchform_wrapper{\nborder-radius:0px 0px 0px 0px;\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #s.av-input-field{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #searchsubmit{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchsubmit_wrapper{\nborder-radius:0px 0px 0px 0px;\n}\n.ajax_search_response.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7{\npadding:0px 0px 0px 0px;\nmargin:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7  avia-builder-el-2  el_after_av_hr  el_before_av_textblock '><search><form action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3h2ob1-b2ad3a0550d24bce7e495bc576c055f2\">\n#top .av_textblock_section.av-kv3h2ob1-b2ad3a0550d24bce7e495bc576c055f2 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv3h2ob1-b2ad3a0550d24bce7e495bc576c055f2 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4560\u00a0Recovery of Payments to Unlicensed Contractor\u2014Essential Factual Elements (Bus. &amp; Prof. Code, \u00a7\u20097031(b))<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] did not have a valid contractor\u2019s license during all times when [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was [performing services\/supervising construction] for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]. To establish this claim and recover all compensation paid for these services, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [[engaged\/hired]\/ [or] contracted with] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] to perform services for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That a valid contractor\u2019s license was required to perform these services; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] paid [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] for services that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] performed.<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is not entitled to recover all compensation paid if [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] proves that at all times while [performing\/supervising] these services, [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] had a valid contractor\u2019s license as required by law.] <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New June 2016; Revised November 2020, May 2021 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Give this instruction in a case in which the plaintiff seeks to recover money paid to an unlicensed contractor for service performed for which a license is required. (Bus. &amp; Prof. Code, \u00a7\u20097031(b).) Modify the instruction if the plaintiff claims the defendant did not perform services or supervise construction, but instead agreed to be solely responsible for completion of construction services. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Vallejo Development Co. v. Beck Development Co.<\/span>\u00a0(1994) 24 Cal.App.4th 929, 940 [29 Cal.Rptr.2d 669].) For a case brought by a licensed contractor or an allegedly unlicensed contractor for payment for services performed, give\u00a0CACI No. 4562,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Payment for Construction Services Rendered\u2014Essential Factual Elements<\/span>. (See\u00a0Bus. &amp; Prof. Code, \u00a7\u20097031(a),\u00a0(e).)<\/p>\n<p>The burden of proof to establish licensure or proper licensure is on the licensee. Proof must be made by producing a verified certificate of licensure from the Contractors State License Board. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure is on the contractor. (Bus. &amp; Prof. Code, \u00a7\u20097031(d).) Omit the final bracketed paragraph if the issue of licensure is not contested.<\/p>\n<p>A corporation qualifies for a contractor\u2019s license through a responsible managing officer (RMO) or responsible managing employee (RME) who is qualified for the same license classification as the classification being applied for. (Bus. &amp; Prof. Code, \u00a7\u20097068(b)(3).) The plaintiff may attack a contractor\u2019s license by going behind the face of the license and proving that a required RMO or RME is a sham. The burden of proof remains with the contractor to prove a bona fide RMO or RME. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Buzgheia v. Leasco Sierra Grove<\/span>\u00a0(1997) 60 Cal.App.4th 374, 385\u2212387 [70 Cal.Rptr.2d 427].) Whether an RMO or RME is a sham can be a question of fact. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jeff Tracy, Inc. v. City of Pico Rivera<\/span>\u00a0(2015) 240 Cal.App.4th 510, 518 [192 Cal.Rptr.3d 600].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Action to Recover Compensation Paid to Unlicensed Contractor.\u00a0Business and Professions Code section 7031(b).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Proof of Licensure.\u00a0Business and Professions Code section 7031(d).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cContractor\u201d Defined.\u00a0Business and Professions Code section 7026.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe purpose of the licensing law is to protect the public from incompetence and dishonesty in those who provide building and construction services. The licensing requirements provide minimal assurance that all persons offering such services in California have the requisite skill and character, understand applicable local laws and codes, and know the rudiments of administering a contracting business.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Hydrotech Systems, Ltd. v. Oasis Waterpark<\/span>\u00a0(1991) 52 Cal.3d 988, 995 [277 Cal.Rptr. 517, 803 P.2d 370], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cBecause of the strength and clarity of this policy, it is well settled that section 7031 applies despite injustice to the unlicensed contractor. \u2018Section 7031 represents a legislative determination that the importance of deterring unlicensed persons from engaging in the contracting business\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">outweighs any harshness between the parties,<\/span>\u00a0and that such deterrence can best be realized by denying violators the right to maintain any action for compensation in the courts of this state. [Citation.]\u2009\u2026\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Hydrotech Systems, Ltd., supra,<\/span>\u00a052 Cal.3d at p. 995, original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe current legislative requirement that a contractor plaintiff must, in addition to proving the traditional elements of a contract claim, also prove that it was duly licensed at all times during the performance of the contract does not change this historical right to a jury trial.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jeff Tracy, Inc., supra,<\/span>\u00a0240 Cal.App.4th at p. 518, fn. 2.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he courts may not resort to equitable considerations in defiance of section 7031.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Lewis &amp; Queen v. N. M. Ball Sons<\/span>\u00a0(1957) 48 Cal.2d 141, 152 [308 P.2d 713].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn 2001, the Legislature complemented the shield created by subdivision (a) of section 7031 by adding a sword that allows persons who utilize unlicensed contractors to recover compensation paid to the contractor for performing unlicensed work. Section 7031(b) provides that \u2018a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract\u2019 unless the substantial compliance doctrine applies.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">White v. Cridlebaugh<\/span>\u00a0(2009) 178 Cal.App.4th 506, 519 [100 Cal.Rptr.3d 434], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt appears section 7031(b) was designed to treat persons who have utilized unlicensed contractors consistently, regardless of whether they have paid the contractor for the unlicensed work. In short, those who have not paid are protected from being sued for payment and those who have paid may recover all compensation delivered. Thus, unlicensed contractors are not able to avoid the full measure of the CSLL\u2019s civil penalties by (1) requiring prepayment before undertaking the next increment of unlicensed work or (2) retaining progress payments relating to completed phases of the construction.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">White,<\/span>\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 178 Cal.App.4th at p. 520.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn most cases, a contractor can establish valid licensure by simply producing \u2018a verified certificate of licensure from the Contractors\u2019 State License Board which establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action.\u2019 [Contractor] concedes that if this was the only evidence at issue, \u2018then\u2014perhaps\u2014the issue could be decided by the court without a jury.\u2019 But as [contractor] points out, the City was challenging [contractor]\u2019s license by going behind the face of the license to prove that [license holder] was a sham RME or RMO.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jeff Tracy, Inc., supra,<\/span>\u00a0240 Cal.App.4th at p. 518.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he determination of whether [contractor] held a valid class A license involved questions of fact. \u2018[W]here there is a conflict in the evidence from which either conclusion could be reached as to the status of the parties, the question must be submitted to the jury. [Citations.] This rule is clearly applicable to cases revolving around the disputed right of a party to bring suit under the provisions of\u00a0Business and Professions Code section 7031.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jeff Tracy, Inc., supra,<\/span>\u00a0240 Cal.App.4th at p. 518.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe conclude the authorization of recovery of \u2018<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">all<\/span>\u00a0compensation paid to the unlicensed contractor for performance of any act or contract\u2019 means that unlicensed contractors are required to return all compensation received without reductions or offsets for the value of material or services provided.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">White, supra<\/span>, 178 Cal.App.4th at pp. 520\u2212521, original italics, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[A]n unlicensed contractor is subject to forfeiture even if the other contracting party was aware of the contractor\u2019s lack of a license, and the other party\u2019s bad faith or unjust enrichment cannot be asserted by the contractor as a defense to forfeiture.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Judicial Council of California v. Jacobs Facilities, Inc.<\/span>\u00a0(2015) 239 Cal.App.4th 882, 896 [191 Cal.Rptr.3d 714].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cNothing in section 7031 either limits its application to a particular class of homeowners or excludes protection of \u2018sophisticated\u2019 persons. Reading that limitation into the statute would be inconsistent with its purpose of \u2018\u2009\u201cdeterring unlicensed persons from engaging in the contracting business.\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp.<\/span>\u00a0(2017) 12 Cal.App.5th 842, 849 [219 Cal.Rptr.3d 775].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cBy entering into the agreements to \u2018improve the Property\u2019 and to be \u2018<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">solely responsible<\/span>\u00a0for completion of infrastructure improvements\u2014including graded building pads, storm drains, sanitary systems, streets, sidewalks, curbs, gutters, utilities, street lighting, and traffic signals\u2014[the plaintiff] was clearly contracting to provide construction services in exchange for cash payments by [the defendants]. The mere execution of such a contract is an act \u2018in the capacity of a contractor,\u2019 and an unlicensed person is barred by section 7031, subdivision (a), from bringing claims based on the contract. [\u00b6] \u2026 [\u00b6] \u2026 Section 7026 plainly states that both the person who provides construction services himself and one who does so \u2018through others\u2019 qualifies as a \u2018contractor.\u2019 The California courts have also long held that those who enter into construction contracts must be licensed, even when they themselves do not do the actual work under the contract.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Vallejo Development Co., supra,<\/span>\u00a024 Cal.App.4th at pp. 940\u2013941, original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[Contractor] has not alleged one contract, but rather a series of agreements for each separate task that it was asked to perform. It may therefore seek compensation under those alleged agreements that apply to tasks for which no license was required.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Phoenix Mechanical Pipeline, Inc., supra,<\/span>\u00a012 Cal.App.5th at p. 853.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cSection 7031, subdivision (e) states an exception to the license requirement of subdivision (a). Subdivision (e) provides in part: \u2018[T]he court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">C. W. Johnson &amp; Sons, Inc. v. Carpenter<\/span>\u00a0(2020) 53 Cal.App.5th 165, 169 [265 Cal.Rptr.3d 895].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[I]t is clear that the disgorgement provided in section 7031(b) is a penalty. It deprives the contractor of any compensation for labor and materials used in the construction while allowing the plaintiff to retain the benefits of that construction. And, because the plaintiff may bring a section 7031(b) disgorgement action regardless of any fault in the construction by the unlicensed contractor, it falls within the Supreme Court\u2019s definition of a penalty: \u2018a recovery \u201c\u2009\u2018without reference to the actual damage sustained.\u2019\u2009\u201d\u2009\u2019 Accordingly, we hold that [Code Civ. Proc., \u00a7] 340, subdivision (a), the one-year statute of limitations, applies to disgorgement claims brought under section 7031(b).\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Eisenberg Village of Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, Inc.<\/span>\u00a0(2020) 53 Cal.App.5th 1201, 1212 [268 Cal.Rptr.3d 334], internal citation and footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]e hold that the discovery rule does not apply to section 7031(b) claims. Thus, the ordinary rule of accrual applies, i.e., the claim accrues \u2018\u2009\u201cwhen the cause of action is complete with all of its elements.\u201d\u2009\u2019 In the case of a section 7031(b) claim, the cause of action is complete when an unlicensed contractor completes or ceases performance of the act or contract at issue.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Eisenberg Village of Los Angeles Jewish Home for the Aging, supra,<\/span>\u00a053 Cal.App.5th at pp. 1214\u20131215, internal citation omitted.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>1 Witkin, Summary of California Law (11th ed. 2017) Contracts, \u00a7\u2009491<\/div>\n<div>12\u00a0California Real Estate Law and Practice, Ch. 430,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Licensing of Contractors<\/span>, \u00a7\u2009430.70\u00a0(Matthew Bender)<\/div>\n<div>10\u00a0California Forms of Pleading and Practice, Ch. 104,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Building Contracts<\/span>, \u00a7\u2009104.83\u00a0(Matthew Bender)<\/div>\n<div>5\u00a0California Points and Authorities, Ch. 50A,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Contracts: Performance, Breach, and Defenses<\/span>, \u00a7\u200950A.52 et seq.\u00a0(Matthew Bender)<\/div>\n<div>29\u00a0California Legal Forms, Ch. 88,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Licensing of Contractors<\/span>, \u00a7\u200988.18\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7ick5w-d4016dd87bb465d7c65ab1c63d4acfe6 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-6g5lpg-47693cf97547e6aaa6b42eb976802747\">\n#top .av_textblock_section.av-6g5lpg-47693cf97547e6aaa6b42eb976802747 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-6g5lpg-47693cf97547e6aaa6b42eb976802747 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2324","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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