Florida Court Says Lack of Construction License Does Not Void Contract

Many agreements related to construction projects and other types of building and repair jobs include a provision that requires the contractor to be properly licensed for the work they’re doing. Florida law also declares that unlicensed contractors are not permitted to enforce agreements in court. This might seem like a simple standard, but there are situations where it is not clear if a particular task needs authorization from a government body. When a group of Florida condominium associations attempted to avoid full payment to a storm-remediation contractor based on this issue, it triggered a lawsuit. 

The case involved Incident365, a company promised $1.4 million to dry buildings and mitigate mold following water intrusion caused by a storm. After paying approximately $400,000, a group of condo associations at Ocean Pointe in Key Largo refused to pay the remaining balance, arguing that the contract was unenforceable because Incident365 was unlicensed as a building contractor.

Within the relevant contract, Incident365 agreed to perform seven specific disaster recovery tasks at the Ocean Pointe properties. These included water damage mitigation, anti-microbial application, structural dehumidification and structural removal of affected substrates. When the condo group failed to pay the full contracted amount, Incident365 said a contractor’s license was not required because their work did not constitute “remodeling, repair or improvement” as described in the relevant statue’s definition of a building contractor. 

In its decision, the Third District Court of Appeals agreed with Incident365. The panel concluded that Florida law does not explicitly mandate that mold removal companies be licensed as building contractors. Whereas the trial court held that all of the disaster recovery tasks in the contract required a license, the Court of Appeals overturned the lower court’s summary judgment in favor of Ocean Pointe, ruling that the lack of a contractor’s license did not necessarily void the contract in this case.

This decision reflects a nuanced approach to Florida’s contractor licensing laws. By focusing on the specific type of tasks performed—in this case, mold remediation—the court avoided a blanket rule that could have voided contracts even when the contemplated work was completed. Parties should focus on clarifying issues related to licensing when negotiating agreements, as the Court of Appeals’ approach balances the need to protect consumers from unlicensed contractors with the practical realities of storm recovery efforts.  

The law firm of H. Clay Parker, Esq. advises Central Florida clients on a full range of contract matters, including the enforcement of agreements. For a consultation, please call [ln::phone] or contact us online. Our office is in Orlando.