CACI No. 4562. Payment for Construction Services Rendered - Essential Factual Elements (Bus. & Prof. Code, § 7031(a), (e))

Judicial Council of California Civil Jury Instructions (2024 edition)

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4562.Payment for Construction Services Rendered - Essential
Factual Elements (Bus. & Prof. Code, § 7031(a), (e))
[Name of plaintiff] claims that [name of defendant] owes [name of plaintiff]
money for construction services rendered. To establish this claim, [name
of plaintiff] must prove all of the following:
1. That [name of defendant] [[engaged/hired]/ [or] contracted with]
[name of plaintiff] to [specify contractor services];
2. That [name of plaintiff] had at all times during the performance of
construction services a valid contractor’s license;
3. That [name of plaintiff] performed these services;
4. That [name of defendant] has not paid [name of plaintiff] for the
construction services that [name of plaintiff] provided; and
5. The amount of money [name of defendant] owes [name of plaintiff]
for the construction services provided.
New May 2021
Directions for Use
Give this instruction in a case in which the plaintiff-contractor seeks to recover
compensation owed for services performed for which a license is required. (Bus. &
Prof. Code, § 7031(a).)
For element 2, licensure requirements may be satisfied by substantial compliance
with the licensure requirements. (Bus. & Prof. Code, § 7031(e).) If the court has
determined the defendant’s substantial compliance, modify element 2 accordingly,
and instruct the jury that the court has made the determination.
When licensure or proper licensure is controverted, the burden of proof to establish
licensure or proper licensure is on the contractor. (Bus. & Prof. Code, § 7031(d).)
Proof must be made by producing a verified certificate of licensure from the
Contractors State License Board.
For a case involving recovery of payment for services provided by an allegedly
unlicensed contractor, give CACI No. 4560, Recovery of Payments to Unlicensed
Contractor - Essential Factual Elements.
Sources and Authority
Proof of Licensure. Business and Professions Code section 7031(d).
“Contractor” Defined. Business and Professions Code section 7026.
“[Contractor] has not alleged one contract, but rather a series of agreements for
each separate task that it was asked to perform. It may therefore seek
compensation under those alleged agreements that apply to tasks for which no
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license was required.” (Phoenix Mechanical Pipeline, Inc. v. Space Exploration
Technologies Corp. (2017) 12 Cal.App.5th 842, 853 [219 Cal.Rptr.3d 775].)
“Section 7031, subdivision (e) states an exception to the license requirement of
subdivision (a). Subdivision (e) provides in part: ‘[T]he court may determine that
there has been substantial compliance with licensure requirements under this
section if it is shown at an evidentiary hearing that the person who engaged in
the business or acted in the capacity of a contractor (1) had been duly licensed
as a contractor in this state prior to the performance of the act or contract, (2)
acted reasonably and in good faith to maintain proper licensure, and (3) acted
promptly and in good faith to remedy the failure to comply with the licensure
requirements upon learning of the failure.’ (C. W. Johnson & Sons, Inc. v.
Carpenter (2020) 53 Cal.App.5th 165, 169 [265 Cal.Rptr.3d 895].)
“[S]ection 7031 bars even a licensed general contractor in California from
bringing an action for compensation for an act or contract performed by an
unlicensed subcontractor where a license is required.” (Kim v. TWA Construction,
Inc. (2022) 78 Cal.App.5th 808, 831 [294 Cal.Rptr.3d 140].)
Secondary Sources
1 Witkin, Summary of California Law (11th ed. 2017) Contracts, § 491
California Civil Practice: Real Property Litigation §§ 10:26-10:38 (Thomson
Reuters)
12 California Real Estate Law and Practice, Ch. 430, Licensing of Contractors,
§ 430.70 (Matthew Bender)
10 California Forms of Pleading and Practice, Ch. 104, Building Contracts, § 104.83
(Matthew Bender)
5 California Points and Authorities, Ch. 50A, Contracts: Performance, Breach, and
Defenses, § 50A.52 et seq. (Matthew Bender)
29 California Legal Forms, Ch. 88, Licensing of Contractors, § 88.18 (Matthew
Bender)
Miller & Starr, California Real Estate 4th §§ 32:68-32:84
4563-4569. Reserved for Future Use
CACI No. 4562 CONSTRUCTION LAW
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