California Business and Professions Code §7031 is one of the most powerful consumer protection statutes in the country. If your contractor was unlicensed, you can recover all money paid — regardless of whether the work was done correctly.
California Business and Professions Code §7031 is unambiguous: a contractor who was not properly licensed at the time work was performed cannot collect or maintain any compensation for that work. Section 7031(b) gives you the right to sue to recover all compensation paid — even if you knew the contractor was unlicensed, and even if you were satisfied with the work. California courts have consistently enforced this rule strictly.
Go to cslb.ca.gov and click "Check a License." Enter the contractor's name or license number. Verify the license was active during the period your work was performed and that it covers the type of work done. Even if a contractor has a license number, verify it was in the correct classification for your project.
Filing a §7031 disgorgement lawsuit is more straightforward than most homeowners expect. You do not need to prove that the work was defective. You do not need to prove that you were harmed. You only need to prove two things: (1) the contractor performed work on your property, and (2) the contractor was not properly licensed at the time. Everything else follows automatically from the statute.
In practice, most §7031 cases are resolved without a full trial. Once a contractor's attorney sees that the license verification confirms unlicensed status, the contractor has virtually no defense. Many cases settle quickly for a significant portion of the amount paid.
This is not a valid defense under §7031. The license must be held by the contractor performing the work, or by the business entity that contracted with you, with a qualifying individual directly connected to that entity. A contractor who claims to be covered by someone else's license is almost certainly unlicensed for purposes of §7031.
No. California courts have consistently held that §7031 rights cannot be waived by contract. The statute's public policy purpose — deterring unlicensed contracting — is so strong that courts will not enforce waiver provisions. Even if you signed something that purported to waive §7031, it is unenforceable.
§7031 itself does not provide for attorney fee recovery. However, if your contract includes a fee-shifting clause (common in construction contracts), or if you can prove fraud in addition to unlicensed status, attorney fees may be available on separate grounds. Bay Legal PC will evaluate fee recovery options as part of your free consultation.
Bay Legal PC handles construction disputes throughout California. Tell us about your situation and we'll be in touch promptly.
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