Daily Development for
By: Patrick A. Randolph, Jr.
Elmer F. Pierson Professor of
Of Counsel: Blackwell Sanders Peper Martin
Kansas City,
prandolph@cctr.umkc.edu
MECHANIC'S LIENS; LICENSE REQUIREMENT;
QUANTUM MERUIT: Unlicensed
contractor who supplies and installs slate roof is barred from lien to collect
unpaid contract price either for supplying materials or for installing them;
and cannot collect value of slate based upon unjust enrichment, even when
customer was aware of the lack of a license.
Stokes v. Millen Roofing Company, 466
The court analyzed the Michigan Residential Builders Act, which provides
specifically that "a person . . . shall not bring or maintain an action .
. . for the collection of compensation for the performance of an act or
contract for which a license is required by this article without alleging and
proving that the person was licensed . . . during the performance of the act or
contract." It concluded that this language inescapably
barred the contractor from recovery, either a law or in equity for quantum meruit even though the home owner was benefitted
substantially by the project and even though the homeowner knew that the
contractor was unlicensed and arguably induced the contractor to provide the
services.
A dissenter argued that the statutory impact, at least, could be bifurcated,
and the contractor ought to be able to collect for the value of the materials
provided, because no license was required under the statute for the provision
of building materials. The majority
rejected this reasoning, holding that the provision and installation of the
materials were all part of the same contractual event here.
Of interest is the fact that the court overruled a prior decision, written
by one of the its own members, who joined in the
overruling, which had held that equitable relief will be available for an
unlicensed contractor. It did continue
to uphold another precedent case that held that a party seeking to invoke the
aid of equity to restyle an arrangement as an equitable mortgage, instead of a
transfer of title, would be required to do equity by paying for services
rendered by the equitable mortgagee notwithstanding
the fact that the mortgagee was not licensed a
licensed contractor and part of the debt related to building improvements.
Comment: Obviously a tough decision. Cases elsewhere have granted compensation to brokers and to contractors for unjust enrichment notwithstanding the absence of a license when clear benefit has been provided.. A concurring judge here noted the injustice of denying relief in this case, but felt compelled by the language of the statute to do so.
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