Legal Question in Construction Law in California

Re: unlicensed contractor?

Your first defense here should be CA Business and Professions Code section 7031, which precludes an unlicensed conractor from bringing or defending a lawsuit for compensation for contracting. *Compensation* means everything except out of pocket expenses, so if his actual cost of paint is $200 and supplies another $50, you can counter-sue him for $150 (return of the excess compensation you've already paid) as well as defeat his claim for additional money.

Your second defense is Business and Professions Code section 7150 et seq (primarily 7159.5), which says that any work done to a residence or appurtenances thereto must have a written contract that meets extremely detailed requirements. Failing to produce a written contract and the special advisements that accompany it (regarding mechanics liens, workers comp insurance, licensure, etc.) places the burden on this guy to rebut whatever you said the contract contained, and a small claims judge is likely to find he didn't rebut your story. If you run through the entire B&P 7000 series for legal requirements of contractors, you'll likely find quite a few (7113 - failure to complete a project for the stated price, etc etc etc), and each one supports a claim for Unfair Competition in violation of B&P 17200.

Procedurally, you will want to file your cross-complaint (your lawsuit against him for return of compensation and damages he did to your property) at the same time that you file your answer to his complaint. Many people forget this timing requirement.

Because these are such small amounts of money we're talking about, you should consider doing your own legal research after visiting a free legal aid clinic. Attorneys fees will quickly exceed the value of the case, even after a just few hours with a lawyer.

Good luck.