A Case Where A Contractor’s License Was Not Required.

The project is the ICE [U.S. Immigration and Customs Enforcement] perimeter fence in El Centro. The prime government contractor brought in a subcontractor, and the subcontractor brought in a sub-subcontractor. The sub-subcontractor received only partial payment and the subcontractor was fired. The sub-subcontractor filed a complaint invoking its rights under 40 U.S.C. § 3131-3134 [Miller Act] for the rest of its money. The district court dismissed the claim because the sub-subcontractor was not licensed as required by California’s Business and Professions Code section 7031(a). The Ninth Circuit reversed, finding that California’s contractor’s license requirement was not a defense to a Miller Act claim.  (Technica LLC v. Carolina Casualty Ins. Co. (Ninth Cir.; April 29, 2014) 749 F.3d 1149.)