WSS Industrial Construction, Inc. v. Great West Contractors, Inc.

SUMMARY

A corporate subcontractor sued a general contractor to recover for work performed under a construction services agreement. At trial, the general contractor and its surety moved for nonsuit arguing the subcontractor was barred by the Contractors’ State License Law, Business and Professions Code section 7000 et seq. (the CSLL), from maintaining any action for recovery because the subcontractor was not properly licensed at all times during its performance of the contract. The trial court disagreed. It concluded the corporation’s president held a valid individual contractor’s license at all times and that, in any event, licensure was not required for tasks the corporation performed prior to obtaining its license. The court found “there was substantial compliance with the licensing [statute] during the contract and work was performed in good faith,” and denied the motions for nonsuit A jury found in favor of the subcontractor and awarded over $220,000 in damages, statutory penalties and interest.

We conclude the trial court erred in denying nonsuit. With one exception, the CSLL forbids a contractor from recovery—in law or at equity—on an otherwise valid claim for…