McBarron

Plaintiffs appeal from an adverse judgment in a suit to recover an alleged balance due under a contract for the construction of a house.

In November 1956 George 0. Peshel, hereafter referred to as Peshel, a licensed contractor, entered into a contract with defendant for the construction of a house. A few days later Peshel assigned the contract to plaintiffs, also licensed contractors. Plaintiffs and Peshel jointly performed the contract. At trial, defendant’s defense was that plaintiffs and Peshel had acted as joint venturers and did not possess a license to act as such, as required by Business and Professions Code section 7029, and hence could not maintain this action because of the bar of Business and Professions Code section 7031. The trial court sustained the defense and entered judgment for defendant.

At the time the trial court entered its judgment it was undoubtedly correct. Business and Professions Code section 7031 then read: “No person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action in any court of this State for the collection of compensation for the performance of any act or contract for which a license is required…