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SMALL CLAIMS COURT (CCP 116.370) How to Sue an Unlicensed Contractor A person who uses an unlicensed contractor may sue the contractor to recover all money paid for the work they performed. A contractor may not sue a property owner to recover compensation for work on a contract unless he or she was licensed at all times while performing the work. In either case, it does not matter whether the unlicensed contractor did a good job. A recent court case1 stated (B&P 7031) strictly p.

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