Baja Properties agreed to build a house for Ugo Mattera, but its owner was not licensed as a Georgia residential contractor when the work was performed. After Mattera terminated the incomplete project, Baja sued for breach of contract, quantum meruit, and a materialman’s lien, while Mattera asserted contract, negligence, and fraud counterclaims. The Georgia Court of Appeals held that Georgia’s licensing statute barred Baja from enforcing the construction contract or recovering in equity for work requiring a license. The court also upheld summary judgment against Mattera’s fraud claims because evidence of inferior workmanship or a contract breach did not establish scienter, intent to induce reliance, reliance, and damage. The court addressed the consolidated appeals separately and affirmed the judgment in the individual-owner action while affirming in part and reversing in part the judgment involving Baja and the Matteras. The decision left the fraud rulings intact and applied the licensing statute to the contractor’s recovery claims.