What Florida Contractors Can Learn From Recent Court Decisions
In today’s construction environment, rising demand and inflation, coupled with labor shortages, are contributing to more claims for non-payment and defect disputes. Recent rulings from Florida courts underscore two critical best practices for contractors: first, ensure your licensed contractor is properly registered as the company’s qualifying agent before starting work; second, once litigation begins, keep competent counsel actively engaged and strictly meet all court deadlines.
Case 1: Contract Unenforceable for Lack of Agent Registration
In this case, CAM Bradford Homes, LLC v. Arrants, a construction firm was hired to build a single-family home. The principal contractor held a general contractor’s license, pulled permits in his name, and supervised the job. When the owners terminated the project and the company sued for payment, the owners defended by pointing out that the business never applied to the state regulatory board to designate that licensed contractor as its qualifying agent.
The trial court entered judgment for the owners, and the appellate court affirmed. Because the qualifying agent registration was never submitted, the company was operating without a valid license when it entered the contract, and therefore could not enforce it.
The key takeaway from this case is that the court’s ruling makes clear that even a validly licensed contractor cannot enforce a contract if the business entity itself has not properly registered its qualifying agent with the state before work begins.
Case 2: Corporate defendant defaulted for lacking counsel of record
This second case, Winter Park Hospitality, LLC v. On Target Staffing, LLC, was not in the construction trade but is still applicable to construction companies. A corporate defendant fired its defense lawyer during litigation, after a mediation had failed. The court disqualified the law firm and ordered the corporation to have new counsel appear within 10 days, as Florida law does not allow a corporation to appear pro se, or represent themselves, outside small claims court.
The corporation instead filed a request through a non-lawyer employee for more time. The court denied the request and entered a default judgment. The appellate court affirmed, refusing to set aside the judgment on the ground of excusable neglect.
The key takeaway from this case is that Florida law requires corporations to appear in court only through licensed attorneys. Failing to maintain proper legal representation can result in immediate and irreversible default.
Best Practices
- Verify licensing and registration before contracts are signed. Ensure that your company’s qualifying agent is properly registered with the Department of Business and Professional Regulation (DBPR) before bidding on or executing any project.
- Keep documentation up to date. Maintain copies of licenses, registration certificates, and permits in a central file accessible to management and project owners.
- Consult legal counsel before litigation escalates. If a dispute arises, engage an experienced construction or business attorney early to ensure compliance with state regulations and court procedures. Never allow a lapse in counsel during an active case.
- Respond promptly to court orders and deadlines. Even procedural mistakes, such as missed filings or unauthorized motions, can lead to default judgments or dismissal.
Contact Us Today
For Florida contractors, maintaining licensing compliance and legal representation is not optional. It is absolutely necessary in order to prevent financial losses.
Get the legal protection you need from a Florida contractor representation lawyer from Linkhorst Law Firm. We are ready to fight any legal matters you may be facing in the construction industry. Fill out the online form or call 561-626-8880 to schedule a consultation.
Source:
jdsupra.com/legalnews/cautionary-tales-for-cautious-1195362/
