C.W. Johnson & Sons, Inc. v. CarpenterAnnotate this Case
After the trial court sustained without leave to amend a demurrer to a building contractor's second amended cross-complaint for breach of contract and quantum meruit based on the ground that the contractor was not licensed during part of the contract, the contractor appealed.
The Court of Appeal reversed and overruled the demurrer, holding that the contractor is entitled to an evidentiary hearing on whether it substantially complied with contractor licensing law. In this case, although the contractor cannot divide a single contract into segments and claim compensation for work performed during the segment for which it was licensed, the court held that the contractor acted reasonably and in good faith prior to the license's suspension and thus the contractor is entitled to a hearing under Business and Professions Code section 7031, subd. (a).