Handyman Connection of Sacramento, Inc. v. Sands

20 Cal. Rptr. 3d 727, 123 Cal. App. 4th 867, 2004 Daily Journal DAR 13345, 2004 Cal. Daily Op. Serv. 9790, 2004 Cal. App. LEXIS 1828
CourtCalifornia Court of Appeal
DecidedOctober 29, 2004
DocketC045644
StatusPublished
Cited by14 cases

This text of 20 Cal. Rptr. 3d 727 (Handyman Connection of Sacramento, Inc. v. Sands) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Handyman Connection of Sacramento, Inc. v. Sands, 20 Cal. Rptr. 3d 727, 123 Cal. App. 4th 867, 2004 Daily Journal DAR 13345, 2004 Cal. Daily Op. Serv. 9790, 2004 Cal. App. LEXIS 1828 (Cal. Ct. App. 2004).

Opinion

Opinion

SIMS, Acting P. J.

In this case, we construe various provisions of the Contractors’ State License Law related to a contractor’s solicitation and obtaining of a contract to perform work in someone’s home.

In a disciplinary proceeding against plaintiff Handyman Connection of Sacramento, Inc. (Handyman) brought by the Contractors’ State License Board (the Board), an administrative law judge (ALJ) found that Handyman had committed four violations of the Contractors’ State License Law. (Bus. & Prof. Code, § 7000 et seq. (the License Law).) 1 The Board adopted the ALJ’s proposed decision and imposed a penalty of $350.

Handyman filed a petition for peremptory writ of administrative mandamus against defendant Steven P. Sands, Registrar of Contractors, in Sacramento County Superior Court, seeking to vacate the Board’s decision. The trial court denied the petition. Handyman appeals from the ensuing judgment. We shall reverse one of four grounds of discipline found by the Board and otherwise affirm the judgment.

*872 FACTUAL AND PROCEDURAL BACKGROUND

The citation

On January 26, 2001, the Registrar of Contractors 2 issued a citation to Handyman in regard to its project installing hardwood flooring at the home of Forrest and Jo-Ann Myhres. The citation alleged the following License Law violations:

Item No. 1 (assessed penalty, $100): Failed to provide a contract and “Notice of Cancellation” that complies with Civil Code section 1589.7 [(yzc; 1689.7)]. (§ 7110.) 3

Item No. 2 (assessed penalty, $50): Used improper business name (Handyman Connection, rather than Handyman Connection of Sacramento, Inc., the name in which the license is issued). (§ 7117, subd. (a).) 4

Item No. 3 (assessed penalty, $100): Employed unregistered home improvement salesperson. (§ 7154.) 5

Item No. 4 (assessed penalty, $100): Failed to comply with the following provisions of the law regarding home improvement contracts (§ 7159, subds. (a)-(c), (f), (g), (j), (k), (0):

(a) Failed to include the name, address, and license number of the contractor, and/or the name and registration number of the home improvement salesperson in the contract.

(b) Failed to include the approximate starting and completion dates in the contract.

*873 (c) Failed to include a description of the work to be done, the materials and equipment to be used, and the agreed consideration for the work in the contract.

(f) Failed to include a statement re unconditional claim/lien releases to be provided for any portion of work for which payment has been made.

(g) Failed to include a notice in at least 10-point type, near the signature of contractor and owner, stating owner or tenant has the right to require a performance and payment bond.

(j) Failed to include a notice as to the California mechanics’ lien law, as required by section 7018.5.

(k) Failed to include a statement of what constitutes substantial commencement of work.

(l) Failed to include a notice that failure to substantially commence work within 20 days is a violation of the law.

The administrative hearing

Handyman contested the citation. An ALJ heard the matter. Both sides submitted briefs and presented witnesses.

Handyman’s hearing brief disputed all the alleged violations.

As to Item No. 1, Handyman maintained Jo-Ann Myhres had waived cancellation rights in writing so as to authorize work to start immediately. (Civ. Code, § 1689.13.) 6

As to Item No. 2, Handyman maintained that the contract showed Handyman’s full licensed business name, along with the shorter form “Handyman Connection.” 7

*874 As to Item No. 3, Handyman maintained that Gary Bon, the alleged unregistered home improvement salesperson, came within two statutory exceptions to the registration requirement: (1) the exception for “[a] bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service” (§ 7152, subd. (b)(5)); and (2) the purported exception for a person qualifying for a contractor’s license in his own right (§ 7152, subd. (b)(2)). 8

As to Item No. 4, Handyman maintained that its contract with the Myhreses, which consisted of the “Agreement” signed on the starting date and the earlier “Labor Estimate” read together, contained all the notices required by law.

Handyman also asserted that the Board had violated Handyman’s constitutional rights to earn a livelihood and to receive equal protection of the laws. The record of discipline would “place a scarlet letter on H[andyman]’s license so that anyone reviewing the web site would not dare use its services.” Furthermore, contractors normally get only warning letters for “ticky-tack,” “form[],” “technical” violations such as those alleged here.

In a posthearing brief, Handyman asserted that the Board’s interpretations of section 7152, subdivision (b)(2) and (5), altered or amended the plain terms of the statutes in excess of the Board’s authority, thus unconstitutionally violating substantive due process.

The decision

After the hearing, the ALJ filed a proposed decision upholding the citation, which the Board adopted without change.

Factual findings

1. The Registrar of Contractors issued the citation at issue to Handyman on January 26, 2001, charging violations of sections 7110, 7117, subdivision (a), 7154, and 7159.

2. At all relevant times, Handyman was a licensed general contractor.

*875 3. On March 20, 1999, Handyman entered into a home improvement contract with the Myhreses, under which Handyman was to provide labor for the installation of hardwood flooring in the master bedroom and a hallway, at a total price of “no more than” $2,810, and “as low as” $2,590. 9 On April 19, 1999, Handyman purported to enter into a contract with the Myhreses for the same job on the same terms. 10

4. In early 1998, the Myhreses decided they wanted to replace wall-to-wall carpeting in their master bedroom and a hallway with hardwood flooring. They bought the flooring, intending to install it themselves, but did not.

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20 Cal. Rptr. 3d 727, 123 Cal. App. 4th 867, 2004 Daily Journal DAR 13345, 2004 Cal. Daily Op. Serv. 9790, 2004 Cal. App. LEXIS 1828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/handyman-connection-of-sacramento-inc-v-sands-calctapp-2004.