Citizens State Bank v. Gentry

In Citizens State Bank v. Gentry (1937) 20 Cal. App. 2d 415, an individual possessing a contractor's license contracted out to perform some repair work. While the work was underway, he formed a corporation and renewed his license under the corporate name. In an action for collection of amounts due for the repair work, the defendant moved for nonsuit on the ground that the individual with whom it had contracted did not have a current license, that being one of the requisites for pursuing the action. In order to prevent "a manifestly unjust and inequitable result," the court concluded that "the individual plaintiff in whose name the license stood at the time the contract was made and the corporate entity organized by him in whose name the license stood at the time the cause of action accrued, should be considered as one" and that therefore "the finding of the trial court that plaintiff . . . was licensed was justified . . . ." ( Id. at p. 420.)