![Contractor Wins in Arbitration Only to Lose Before the Superior Court on Section 7031 Claim Construction worker pinning something to uniform](https://constructiondefectjournal.com/construction_defect_law/images/nimg/062223_01-safety-construction-worker-protective-helmet.png)
In 2019, Vascos Excavation Group LLC entered into a construction contract with Robert Gold to perform excavation, grading and concrete work at his property in Pacific Palisades, California.
If you’re a regularly reader of the California Construction Law Blog you’re aware of Business and Professions Code section 7031 which courts have variously described as “harsh[ ],” “draconian” and “unjust,” but, importantly, nevertheless valid. We haven’t seen many cases applying Section 7031 in an arbitration setting, however, until now.
In Vascos Excavation Group LLC v. Gold, 87 Cal.App.5th 842 (2022), a contractor who prevailed on a payment claim in arbitration, had its victory snatched from its fingertips by the Superior Court which found that the arbitrator had exceeded her authority because the contractor was subject to Section 7031.
Mr. Murai may be contacted at gmurai@nomosllp.com