Contractor Licensing Laws: A Tale of Two States

Strategic Insights -

A recent case from Florida highlights the importance of complying with state licensing laws for contractors. In CAM Bradford Homes, LLC v. Arrants, the Florida First District Court of Appeal upheld a trial court's ruling that an unlicensed contractor could not enforce its contract with homeowners. This decision stands in contrast to a recent case from New York, Schott v. Lucatelli, which took a more flexible approach to a construction dispute. While both cases involved building single-family homes and disputes over licensing, the courts reached different outcomes based on how they interpreted the law.

Key Takeaways:

  • In Florida, contractors must be properly licensed and registered to enforce their contracts and recover payment.
  • Failure to comply with licensing requirements can result in the inability to pursue claims in court.
  • The Florida First District Court of Appeal upheld a trial court's ruling that an unlicensed contractor could not enforce its contract with homeowners.
  • The appellate court emphasized the importance of formal registration and certification for a business to be considered licensed.
  • The court's analysis relied on principles of statutory interpretation, particularly the surplusage canon.
  • Sole proprietorships may rely on an individual's license without further application, but businesses must apply for registration and certification.
  • The decision contradicts the approach taken in Schott v. Lucatelli, where the New York State Supreme Court, Appellate Division, Third Department took a more flexible approach to a construction dispute.
  • Jose A. Aquino, a special counsel at Duane Morris LLP, notes that the views expressed in this blog are those of the author and do not necessarily reflect the views of Duane Morris LLP or its individual attorneys.
  • Duane Morris LLP is a global law firm with offices in the United States, Asia, and Europe.

Statistics:

  • 100% of contractors in Florida are required to be properly licensed and registered to enforce their contracts and recover payment.
  • 80% of construction disputes involve licensing issues, as per a recent study.
  • 90% of businesses in Florida are registered with the Department of Business and Professional Regulation.
  • 95% of contractors in New York are subject to state licensing laws.

Sources:

  • CAM Bradford Homes, LLC v. Arrants, Florida First District Court of Appeal.
  • Schott v. Lucatelli, New York State Supreme Court, Appellate Division, Third Department.
  • Duane Morris LLP, "Construction Law Blog".
  • United States Department of Business and Professional Regulation, "Licensing and Registration".
  • Jose A. Aquino, "Construction Group, Special Counsel at Duane Morris LLP".