Shelton v. Grubbs
In Shelton v. Grubbs, 116 Ariz. 230, 568 P.2d 1128 (App. 1977), the superior court granted summary judgment enforcing a settlement based on an underlying contract when one of the parties might not have been a licensed contractor. 116 Ariz. at 231, 568 P.2d at 1129.
The appellants argued that the original claim was illegal or unenforceable because the defendant contractor did not plead it had a contractor's license so the settlement was void. Id.
The Court affirmed based on Brecht v. Hammons, stating that since there was no allegation of fraud, misrepresentation or overreaching or an allegation of mistake, there was a bona fide dispute and the compromise was entered into good faith. Id.