West

In this appeal from a summary judgment, we hold that defendants State of California, the Department of Consumer Affairs and the Contractors’ State License Board have no mandatory duty to either refuse to issue and/or revoke licenses issued to a home improvement contractor and one of its salesmen. These defendants are protected by discretionary licensing immunity and are not liable for plaintiffs’ damages.

Plaintiffs are five couples who contracted to make home improvements with defendant below, Associated Remodeling Company, Inc. (ARC), in 1980 and 1981. Plaintiffs allege that James Johnson, a home improvement salesman for ARC, fraudulently represented that plaintiffs first pay the full contract price which, defendant stated, would then be placed in a trust account to be used as needed. This was a violation of Business and Profes sions Code section 7159, subdivision (d). Based on Johnson’s misrepresentations, plaintiffs advanced most or all of the contract price to ARC prior to the start of construction. In all, plaintiffs paid ARC approximately $276,000. No or little work was performed on the individual contracts and no funds were repaid. Plaintiffs sued alleging fraud…