C.W. Johnson & Sons, Inc. v. Carpenter

Filed 7/16/20; Modified and certified for publication 8/7/20 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

C. W. JOHNSON & SONS, 2d Civ. No. B300187 INC., (Super. Ct. No. 56-2018- 00517254-CU-BC-VTA) Cross-complainant and (Ventura County) Appellant,

v.

RANDALL M. CARPENTER,

Cross-defendant and Respondent.

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. The court sustained the demurrer on the ground that the contractor was not licensed during part of the contract. (Bus. & Prof. Code,1

All statutory references are to the Business and 1

Professions Code unless otherwise stated.

§ 7031, subd. (a).) The contractor appeals the ensuing judgment. We reverse and overrule the demurrer. The contractor is entitled to an evidentiary hearing on whether it substantially complied with contractor licensing law. (Id. at subd. (e).) FACTS C. W. Johnson & Sons, Inc. (Johnson) agreed to install flooring in Randall Carpenter’s house for a total price of $68,343. Carpenter deposited 50% of the total ($34,171.50) with the balance to be paid on completion. All did not go well. Carpenter sued Johnson alleging causes of action for breach of contract, disgorgement of money paid to an unlicensed contractor, fraud, and unfair business practices. Johnson answered and cross-complained for the balance of the contract price, alleging breach of contract and quantum meruit. Carpenter demurred to the second amended cross-complaint on the ground that Johnson did not allege it was a licensed contractor. Johnson opposed the demurrer on the ground it was licensed during the period for which it is seeking compensation, or, at least, it is entitled to a hearing on whether it substantially complied with the contractor’s licensing law. Second Amended Cross-complaint Johnson’s second amended cross-complaint alleged as follows: The parties entered into the contract on March 25, 2016. Between March 2016 and September 2016, Johnson performed work under the contract, including the original installation of the flooring. Work performed after September 2016 consisted of warranty, repair, and corrective work. At all times during the original installation, Johnson was a duly licensed contractor.