Alatriste v. Cesar's Exterior Designs, Inc.

Opinion

HALLER, J.

Esaul Alatriste paid Cesar’s Exterior Designs, Inc. (Cesar’s Designs), $57,500 for landscaping work at his home. Alatriste then sued Cesar’s Designs seeking reimbursement of the $57,500 under the statute allowing a party to recover “all compensation paid to [an] unlicensed contractor.” (Bus. & Prof. Code, § 7031, subd. (b).)

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Alatriste successfully moved for summary adjudication on this claim. After Alatriste dismissed his remaining claims, the court entered judgment in Alatriste’s favor for $57,500 plus interest and costs.

Cesar’s Designs concedes it was unlicensed when it began the landscape work, but contends the court erred in granting summary adjudication because it presented facts supporting its defenses and/or offsets to Alatriste’s section 7031(b) claim. This contention is without merit. The proffered facts do not support a viable defense or offset to Alatriste’s reimbursement claim under section 7031(b). Specifically, we hold that (1) Alatriste’s prior knowledge of Cesar’s Designs’s unlicensed status does not bar his section 7031(b) reimbursement claim; (2) Alatriste is entitled to recover the total amount paid even though Cesar’s Designs was licensed during a portion of the work; and (3) Alatriste is entitled to recover payments for materials retained by him (in addition to payments for labor). Accordingly, we affirm.

[661]

FACTUAL AND PROCEDURAL BACKGROUND

Alatriste retained Cesar’s Designs to perform landscape construction services at Alatriste’s newly built home. After working for about five months, Cesar’s Designs terminated its services when Alatriste refused to continue to pay for work performed. By that time, Alatriste had paid Cesar’s Designs $57,500.

Alatriste then brought an action against Cesar’s Designs, alleging fraud, negligent misrepresentation, and unfair competition, and also sought to recover the total amount paid under section 7031(b) because Cesar’s Designs was unlicensed when it began the work.