Settimo Associates v. Environ Systems, Inc

In Settimo Associates v. Environ Systems, Inc. (1993) 14 Cal.App.4th 842, the plaintiff bidder on two contracts sued the bidder who won the contracts, claiming the defendant was not properly licensed to perform some of the work called for by the contracts (which were fully performed). (Id. at p. 844 & fn. 2.) The court did not address the first element of the tort, simply holding that the lack of a license when the contracts were awarded "does not amount to actionable unlawful interference with contracts." (Id. at p. 846.) The contracts were not public works contracts, and the court observed there was no statutory authority "requiring a private entity to accept bids only from duly licensed contractors." (Ibid.) Settimo also observed that statutory licensing regulations in the Business and Professions Code "neither create nor deny any civil remedy to bidders who lose projects to unlicensed competitors," and that even though the defendant's conduct "amounted to a misdemeanor and foreclosed any possibility of its suing to enforce an awarded contract," sanctioning such misconduct fell to the contractors' licensing board, and the statutory licensing regulations "do not create any action for civil damages in a competing bidder." (Settimo, supra, at p. 846.)