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Appeal Court Decision 3

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Appeal Court Decision

Defendant homeowners appealed a judgment from the Superior Court of Plumas County (California), which awarded damages to plaintiff contractor for amounts owed to him for the construction of their home.


Overview: business attorneys


The contractor used a subcontractor whose license had expired, unaware of the status of the subcontractor's license, and knowingly employed two minors and another unlicensed person to do construction work. The homeowners refused to pay his final billing. The contractor specifically testified that he had a policy of workers' compensation coverage in effect for his construction employees during the period of construction of the home. The court held that the contractor's testimony was sufficient to meet his burden of proof to show that his license was not suspended for failing to obtain workers' compensation insurance coverage pursuant to Bus. & Prof. Code, § 7125.2. His burden to prove that he was licensed under Bus. & Prof. Code, § 7031, subd. (d), required proof under § 7125.2 that workers' compensation insurance coverage was obtained and maintained for the duration of the construction work. The contractor did not have to prove the amount of wages paid to each worker and match those wages to his reports to the State Compensation Insurance Fund. Thus, the trial court correctly denied the homeowners' claim for the sanctions provided by § 7031 as to unlicensed contractors.



The court affirmed the judgment of the trial court.

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