K & K SERVICES, INC. v. City of Irwindale

In this case, we consider whether an unlicensed contractor is barred by Business and Professions Code section 7031 from bringing an action against a landowner for breach of contract, where the contract does not call for payment of money by the landowner to the contractor, but gives the contractor the exclusive right to run a “fill" operation on the land, under which it will collect dumping fees from third parties. We conclude that the action is barred, and affirm the judgment.

Factual and Procedural Summary

In May 1989, K West Engineering and Grading, Inc., a licensed contractor, made a proposal to the City of Irwindale (City) to fill the abandoned Manning Quarry. Under this proposal, K West would “[pjrovide, place and compact to 90% density clean earth and solid fill material (e.g. broken a.c. & concrete).” City was not required to pay K West for these services. Instead, “In consideration for K West’s services and the substantial expenditures required for a project of this size, K West will be granted the absolute exclusive right to fill the property for a period of two years, commencing the date fill operations begin.” K West was to have three successive two-year…