How have courts interpreted section 7031 of the California Code of Civil Procedure on the basis that a contractor is a "minor, incompetent and fraudulent contractor"?

California, United States of America


The following excerpt is from Hydrotech Systems, Ltd. v. Oasis Waterpark, 218 Cal.App.3d 1507, 267 Cal.Rptr. 874 (Cal. App. 1990):

Plaintiff then relies on Asdourian v. Araj (1985) 38 Cal.3d 276, 211 Cal.Rptr. 703, 696 P.2d 95 for the proposition that the purpose of section 7031 is to protect the public from marginal, incompetent and fraudulent contractors, and that the legislature never intended to bar a just claim by a competent company dealing in California in an isolated transaction.

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