Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 2

Universal City Studios, Inc. (Universal) entered int o a general contract with Turner Construction Company (Turner) for the construction of the Jurassic Park ride. Turner entered into a subcontract with Pacific Custom Pools, Inc. (PCP), for PCP to furnish and install all water treatment work for the project for the contract price of $959,131. PCP performed work on the project fr om April 2011 until June 2012 for which it was paid $897,719. PCP's contractor's license, however, was under suspension from October 12, 2011, to March 14, 2012. In addition, PCP's license had expired as of January 31, 2012, and it was not renewed until May 5, 2012. California Business and Professions Code Section 7031 provides that no contractor may bring an action to recover compensation for the performance of any work requiring a license unless he or she was "a duly licensed contractor at all times during the performance of that [work], regardless of the merits of the cause of action brought bythe contractor." The purpose of this licensing law is to protect the public from incompetence and dishonesty inthose who provide building and construction services. PCP brought suit against Universal and Turner, the defendants, for the remainder of the contract price. Explain who should prevail.