Unlicensed Contractors: $91,820 Fee Award Against Unlicensed Contractor Affirmed On Appeal

Fourth District, Division 3 Affirms Award Under B&P Code Section 7160, Finding No Apportionment Was Necessary.

     Under our category “Unlicensed Contractors,” we have looked at a number of decisions where unlicensed contractors do not suffer well at any level, including when it comes to assessment of attorney’s fees case. The next case is no exception.

     Unlicensed contractor, in Rambeau v. Barker, Case Nos. G041879/G041982 (4^th Dist., Div. 3 July 16, 2010) (unpublished), had to disgorge $602,000 paid to him for construction (plus assessment of a punitive award that was stricken) and was smitten with $91,820 in attorney’s fees under Business and Professions Code section 7160, authorizing a fees award to any person induced to contract for a work of improvement in reliance on false or fraudulent representations knowingly made by the contractor. Unhappy contractor appealed.

     Unhappy contractor lost on appeal with respect to the fee award.

     Contractor luckily did not contest fee entitlement; after all, the statute is there and pretty plain in meaning. The argument (which might have been waived) was that the fees were limited to the recovery incurred in pursuing specifically a fraud cause of action. Not so, said the appellate panel. The provision is not that limited and certainly does not “trump” the general rule that apportionment is not required where issues cannot be segregated and related to a common core of facts or interrelated issues. Fee award affirmed, again stressing that unlicensed contractors need to beware when they “litigate” on appeal.

     This 3-0 unpublished decision was authored by Acting Presiding Justice O’Leary.