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Know The Law
Frederick J. Northrop and William Last Jr. have sent us an article they co-wrote entitled “California Appellate Court Holds That Contractor Must Return All Payments When Qualifier is Not Acting as a Manager”. Some of you may recall that Bill Last is the San Mateo attorney who was a former CNWCOA member and was the lawyer who initiated our lawsuit against the Structural Pest Control Board. In their article, Northrop and Last describe and comment on a case recently decided by a California Court of Appeals, where it was clearly set forth that if your contractor’s license is not in effect at the time you perform work you are not going to recover amounts that are due from the owner. In a case which should be a caution to many contractors, the Fifth District Court of Appeal recently held that where the Responsible Managing Officer was no longer actively managing the business, the contractor's license was automatically suspended and the contractor was required to repay all money collected on a contract without deduction for the value of labor or materials.”
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