Unlicensed General Contractor Required To Disgorge All Compensation For Its Services.

A dispute over a construction project went to arbitration. One party argued the unlicensed general contractor was required to disgorge all compensation for services pursuant to Business and Professions Code section 7031, but the arbitrator rejected the argument and found for the unlicensed general contractor. The trial court denied a motion to vacate the award and entered judgment. The appellate court reversed, holding “7031 constitutes a clear-cut and explicit legislative expression of public policy mandating disgorgement of compensation received by an unlicensed contractor,” and remanded the matter to the trial court for a de novo review. Ahdout v. Hekmatjah (Cal. App. Second Dist., Div. 4; January 25, 2013) 213 Cal.App.4th 21.