Legal Question in Construction Law in California
When the general contractor is unlicense, can he
sue a license subcontractor?
1 Answer from Attorneys
Probably. Business & Professions Code section 7031 says, in relevant part, "........no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that he or she was a duly licensed contractor at all times during the performance of that act or contract, regardless of the merits of the cause of action brought by the person........."
This seems to bar the unlicensed general contractor from attempting to collect money owed it by the owner. It does not seem to bar the unlicensed general contractor from suing for other reasons, including collateral contracts with third parties such as subcontractors or suppliers, or for suing for torts such as negligence or fraud.
In researching this answer, I have come across several appellate court decisions upholding the right of an unlicensed general to sue licensed subs.
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I am a contractor who was used as a sub on a job to provide and install patio... Asked 8/16/10, 10:17 am in United States California Construction Law