When Is A Contractor Unlicensed

In Taylor Morrison Services, Inc., f/k/a Morrison Homes, Inc. v. Carol Ecos and Susan Bessing, 40 Fla. L. Weekly D1283b (1st DCA, May 28, 2015) the First District Court of Appeal reversed a final judgment holding that Morrison Homes was an unlicensed contractor pursuant to Section 489.128(1), Florida Statutes. Section 489.128(1)(c), states, in relevant part, “a contractor shall be considered unlicensed only if the contractor was unlicensed on the effective date of the original contract for the work, if stated therein, or, if not stated, the date the last party to the contract executed it, if stated therein.”

In this case, Morrison Homes had four contractors listed as “qualifying agents” with the Florida Department of Business and Professional Regulation (“DBPR”) on the effective date of the contract.  Two and half months after the parties entered in the contract, someone from Morrison Homes applied for the building permit for the Project. The application was apparently signed by one of the “qualifying agents” listed with DBPR for Morrison Homes. However, the qualifying agent testified that she had no involvement with the Project and disputed the signature’s authenticity. The trial court ruled that Morrison Homes was unlicensed focusing the on the apparent fraud in the permit application and lack of construction supervision.

On appeal, the First DCA noted that the plain language of Section 489.128 requires the determination of whether a contractor is licensed to be made as of the contract’s effective date. The First DCA added that this analysis precludes consideration of events that occur after the effective date of the contract as the trial court had done in this case. The First DCA reversed the trial court’s ruling and held that Morrison Homes was not an licensed contractor under Section 489.128(1) because they had a qualify agent on the effective date of the contract.

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