Technica LLC v. Carolina Cas. Ins. Co., No. 12-56539 (9th Cir. 2014)
Annotate this CaseTechnica, a subcontractor on a federal construction project in California, filed suit under the Miller Act, 40 U.S.C. 3131-3134, against Candelaria, the prime contractor, and its surety CCIC. On appeal, Technica challenged the district court's grant of summary judgment in favor of defendants. The Supreme Court and the Eighth and Tenth Circuits have held that rights and remedies under the Miller Act may not be conditioned by state laws. The court applied their reasoning and held that the limitation in California Business and Professions Code 7031(a) on the right of a non-licensed contractor to maintain an action for collection of unpaid services did not apply to an action under the Miller Act. Because the California licensing requirement is not a defense to a claim under the Miller Act, the court need not address whether Technica falls within the labor provider exception to the statute. Accordingly, the court reversed the judgment of the district court and remanded.
Court Description: Miller Act. Reversing the district court’s summary judgment, the panel held that a subcontractor’s lack of a California contractor’s license did not bar it from pursuing a Miller Act claim for payments due on a subcontract for work on a federal construction project in California. Agreeing with the Eighth and Tenth Circuits, and distinguishing cases dealing with the substantive law of contracts, the panel held that rights and remedies under the Miller Act may not be conditioned by state law. Therefore, the limitation in California Business and Professions Code § 7031(a) on the right of a non-licensed contractor to maintain an action for collection of unpaid services does not apply to an action under the Miller Act.
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