Fraenkel v. Bank of America National Trust & Savings Ass'n

256 P.2d 569, 40 Cal. 2d 845, 1953 Cal. LEXIS 240
CourtCalifornia Supreme Court
DecidedMay 1, 1953
DocketS. F. 18745
StatusPublished
Cited by44 cases

This text of 256 P.2d 569 (Fraenkel v. Bank of America National Trust & Savings Ass'n) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fraenkel v. Bank of America National Trust & Savings Ass'n, 256 P.2d 569, 40 Cal. 2d 845, 1953 Cal. LEXIS 240 (Cal. 1953).

Opinions

SPENCE, J.

Plaintiff sought to recover the unpaid balance allegedly due for the construction of a grain elevator for Gordon F. Williamson, who was the original defendant but [847]*847who died during the pendency of this appeal. Although his representative has been substituted, said Gordon F. Williamson will be referred to as defendant herein. The trial court gave judgment for defendant after sustaining a demurrer to the complaint without leave to amend. There are three companion cases (S.F. Nos. 18746, 18747, and 18748) brought by this same plaintiff against other defendants in similar circumstances, and in which the trial court made like rulings. It has been stipulated that the decisions in those cases will depend on the conclusions reached herein.

The trial court based its ruling solely on the proposition that plaintiff was not a licensed contractor and therefore was not entitled to enforce his claim. Plaintiff contends that the construction work involved may come within the farming exemption of the state licensing law; and that the complaint is capable of amendment to show the required facts. (King v. Mortimer, 83 Cal.App.2d 153, 158 [188 P.2d 502].) An analysis of the applicable statutory law and the underlying public policy thereof sustains plaintiff’s position.

Plaintiff’s action is predicated on a written contract for the construction of a grain elevator for defendant on the basis of “cost plus ten per cent.” During the progress of. construction defendant paid plaintiff $15,286.82 on account. Upon completion plaintiff demanded a total of $18,720.36 for the work, and following defendant’s refusal to make any further payment, plaintiff commenced this action to recover the claimed balance of $3,433.54, plus interest, attorneys’ fees and costs. The complaint alleged that plaintiff performed the contract as an engineer. Defendant interposed a demurrer on the ground that the contract, pleaded as part of the complaint, shows' that plaintiff did the work as a contractor, and that he failed to allege possession of a license to act in that capacity. At the hearing it was stipulated that plaintiff was registered as a professional engineer (Bus. & Prof. Code, div. 3, ch. 7, art. 8) but that he was not licensed as a contractor (Bus. & Prof. Code, div. 3, eh. 9, art. 2). Upon the basis of this stipulation and in accord with defendant’s view relative to the necessity of plaintiff’s compliance with the contractors’ license law, the trial court sustained defendant’s demurrer to the complaint without leave to amend.

On his appeal plaintiff does not deny that under the applicable statutory law his services were rendered as “a contractor” as that term is defined to include “any person who undertakes to . . . construct . . . any building ... or other [848]*848structure” (Bus. & Prof. Code, § 7026); that “it is unlawful for any person to . . . act in [such] capacity . . . without having a license therefor, unless . . . particularly exempted ...” (Ibid. § 7028; emphasis added); and that “no person . . . acting in [such] capacity may . . . maintain any action in any court of this State for the collection of compensation for the performance of any act or contract for which a license is required . . . without alleging and proving that he was a duly licensed contractor at all times during the performance of such act or contract” (Ibid. §7031; emphasis added). However, plaintiff contends that the work he performed was within the following exemption provisions of section 7049 of said code: ‘1 This chapter does not apply to any construction or operation incidental to the construction and repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation districts, or to farming, dairying, agriculture, viticulture, horticulture, or stock or poultry raising, or clearing or other work upon land in rural districts for fire prevention purposes, except when performed by a licensee under this chapter.” (Emphasis added.)

In Kelly v. Hill, 104 Cal.App.2d 61, 63 [230 P.2d 864], the language of section 7049 was, in our opinion, correctly analyzed and construed so as to exempt, as plaintiff here maintains, “any construction or operation incidental to . . . farming . . . agriculture. ... ” A different construction of the exemption was made in Bowline v. Gries, 97 Cal.App.2d 741, 745 [218 P.2d 806], so as “to detach ‘incidental’ from farming and apply it only to certain work of irrigation and reclamation districts” rather than extend it to the succeeding clause of the provision. Such severance in the connected phraseology of the exemption does not appear to correlate with its intended scope, and it is therefore disapproved.

However, there now arises the question of what “construction” is “incidental to farming” or “agriculture.” Manifestly, the Legislature did not intend that the construction of every structure bearing a possible relation to the farming industry would be exempt from the contractors’ license law as “incidental to farming.” That law was enacted for the safety and protection of the public against imposition by persons inexperienced in contracting work, and for the prevention of fraudulent acts by contractors resulting in loss to subcontractors, materialmen, employees, and owners of structures. (Loving & Evans v. Blick, 33 Cal.2d 603, 609 [204 P.2d 23]; Franklin v. Nat. C. Goldstone Agency, 33 Cal.2d 628, [849]*849632 [204 P.2d 37].) In exempting construction “incidental” to farming, agriculture, and allied occupations from the licensing requirements, the Legislature undoubtedly considered that such construction would include only those structures so closely appertaining to and necessary for the conduct of the designated occupations that they may reasonably be dissociated from the objects and purposes of the licensing law. Thus, the Legislature may well have had in mind prevailing conditions in many rural districts where there are few, if any, licensed contractors and where other persons in the area having the necessary training and experience are readily available for doing various construction jobs as the need may arise. Moreover, many farmers themselves develop special skill in various construction trades qualifying them for contracting among themselves for undertaking the erection of structural improvements upon neighboring farms and yet they are not regularly licensed for such occasionally performed work. But consistent with such practical considerations underlying the exemption in question, we are of the opinion that the construction must be located on a farm and must be incidental to the farmer’s own farming operations in order to be “incidental to farming,” within the meaning of the exemption.

All presumptions favor the legislative classification, which cannot be overturned unless plainly arbitrary. (Bor den’s Farm Products Co., Inc. v. Baldwin, 293 U.S. 194, 209-210 [55 S.Ct. 187, 79 L.Ed. 281]; In re Cardinal, 170 Cal. 519, 521 [150 P. 348, L.R.A. 1915F 850]; County of Los Angeles v.

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Bluebook (online)
256 P.2d 569, 40 Cal. 2d 845, 1953 Cal. LEXIS 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraenkel-v-bank-of-america-national-trust-savings-assn-cal-1953.