Construction Financial v. Perlite Plastering Co.

Diversified Gypsum Corporation (Diversified) appeals from the judgment of the superior court dismissing with prejudice Diversified’s action for breach of contract and related causes of action against defendants Perlite Plastering Company, Inc. (Perlite), Moran Construction Company (Moran) and the National Union Fire Insurance Company of Pittsburgh, Pa. (National Union). Dismissal was ordered on the ground that Diversified did not carry its burden of proof of showing substantial compliance with the Contractors’ State License Law (Bus. & Prof. Code, § 7000 et seq. (hereafter, the Law)).

We conclude substantial evidence supported the trial court’s finding that Diversified was unlicensed as a result of the negligence of its vice-president. The trial court also correctly found that the vice-president’s negligence precluded a finding that Diversified substantially complied with the Law. We therefore affirm the judgment.

Factual and Procedural Background

Diversified was formed in 1991 by Keith Gasman, Jr., Susan Johnson and James H. Johnson. Susan Johnson was the president of Diversified; James Johnson and Gasman, Jr., were its vice-presidents. Diversified anticipated doing…