{"id":887635,"date":"2016-03-15T16:32:29","date_gmt":"2016-03-15T22:32:29","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=887635"},"modified":"2016-03-15T16:32:29","modified_gmt":"2016-03-15T22:32:29","slug":"unlicensed-contractors-statute-of-limitations-defense","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/unlicensed-contractors-statute-of-limitations-defense\/","title":{"rendered":"Unlicensed Contractors: Statute of Limitations Defense"},"content":{"rendered":"<p>Austin B. Calhoun | Jimerson &amp; Cobb P.A. | March 11, 2016<\/p>\n<p>Unlicensed contracting is a huge problem in Florida, and the Florida Legislature and Courts have fashioned a host of penalties. <em>See<\/em> Penalties for Unlicensed Contracting in Florida. However, according to a recent opinion from Florida\u2019s Fifth District Court of Appeals, the loss of a \u201c<a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-and-design-claims-beware-of-the-statute-of-limitations-and-repose\/\" target=\"_blank\">statute of limitations defense<\/a>\u201d is not one of those penalties. <em>See <\/em><em>Brock v. Garner Window &amp; Door Sales, Inc.<\/em>, 5D14-1472, 2016 WL 830452 (Fla. 5th DCA Mar. 4, 2016).<\/p>\n<p>Generally, an unlicensed contractor can assert a statute of limitations defense. <em>Id.<\/em> at n.2 (dissent)(\u201cI agree with the majority that nothing in section 489.128, Florida Statutes, or Earth Trades, Inc., would preclude an unlicensed contractor from asserting a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/florida-supreme-court-limits-application-of-statute-of-limitations\/\" target=\"_blank\">statute of limitations<\/a> defense.\u201d) In particular, the <em>Brock <\/em>court held that an unlicensed contractor can invoke the benefit of the limitations set forth in Section 95.11(3)(c), Florida Statutes. Section 95.11(3)(c) provides a 4-year limitation for actions \u201cfounded on the construction of an improvement to real property,\u201d which is shorter than the five-year limitation on written contracts generally.<\/p>\n<p>In <em>Brock<\/em>, the appellant made two arguments as to why the unlicensed contractor should be precluded from raising the Section 95.11(3)(c) 4-year limitation defense. First, the language of Section 95.11(3)(c) includes the term \u201clicensed contractor.\u201d That Section provides a four year statute of limitations period for:<\/p>\n<blockquote><p>An action founded on the design, planning, or construction of an improvement to real property, with the time running from the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or <u>licensed contractor<\/u> and his or her employer, whichever date is latest; except that, when the action involves a latent defect, the time runs from the time the defect is discovered or should have been discovered with the exercise of due diligence.<\/p>\n<p>&nbsp;<\/p><\/blockquote>\n<ul>\n<li>95.11(3)(c), Fla. Stat. (emphasis added). The statute further provides:<\/li>\n<\/ul>\n<blockquote><p>In any event, the action must be commenced within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or <u>licensed contractor<\/u> and his or her employer, whichever date is latest.<\/p><\/blockquote>\n<p><em>Id<\/em>. (emphasis added).<\/p>\n<p>The majority concluded that the reference to \u201clicensed contractor\u201d is contained within the portion of the statute that addresses when the statute commences to run, not the types of actions to which it applies.<em>Brock<\/em>. In addition, the majority found that the \u201clicensed contractor\u201d language was not implicated at all because the event triggering the commencement of the running of the statute in that case was the discovery of the latent defect\u2014not the completion of the contract\u2014and the licensed contractor language is not found within the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/latent-defect-language-listed-to-avoid-paying-for-a-covered-loss-is-an-old-excuse-and-sometimes-only-latent-defects-get-coverage\/\" target=\"_blank\">latent defect<\/a> portion of the statute. For these reasons, the <em>Brock<\/em> majority concluded that an unlicensed contractor could invoke the Section 95.11(3)(c) 4-year limitation to an action founded on latent construction defects.<\/p>\n<p>In a dissenting opinion, Justice Berger presented an alternative interpretation of the use of \u201clicensed contractor\u201d language in Section 95.11(3)(c):<\/p>\n<blockquote><p>The language of section 95.11(3)(c) is clear and unambiguous and twice references \u201clicensed contractor[s].\u201d In my view, the inclusion of the term \u201clicensed\u201d indicates that the Legislature intended for section 95.11(3)(c) to apply only to actions \u201cfounded on the design, planning, or construction of an improvement to real property\u201d if that design, planning or construction was performed by a licensed contractor.<\/p><\/blockquote>\n<p><em>Brock<\/em>. The dissent concluded that the Legislature intended for only \u201clicensed\u201d contractors to obtain the benefit of the 4-year limitation because it included the term \u201clicensed contractor\u201d in two particular parts of the Section. \u201cTherefore, because the Legislature limited section 95.11(3)(c) to licensed contractors, construction performed by unlicensed contractors would be excluded from the four-year limitations period.\u201d <em>Id. <\/em>To hold otherwise would render the statute\u2019s reference to \u201clicensed contractor[s]\u201d meaningless. <em>Id.<\/em> Nevertheless&#8230;<\/p>\n<p><a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=0a95b7fe-f8dd-4051-bd4e-cd395aa65f18&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2016-03-15&amp;utm_term=\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Austin B. Calhoun | Jimerson &amp; Cobb P.A. | March 11, 2016 Unlicensed contracting is a huge problem in Florida, and the Florida Legislature and Courts have fashioned a host of penalties. See Penalties for Unlicensed Contracting in Florida. However, according to a recent opinion from Florida\u2019s Fifth District Court of Appeals, the loss of&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/unlicensed-contractors-statute-of-limitations-defense\/\">Continue reading <span class=\"screen-reader-text\">Unlicensed Contractors: Statute of Limitations Defense<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,172],"tags":[187,9130],"class_list":["post-887635","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-construction-law-2","tag-statute-of-limitations","tag-unlicensed-contractors","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Unlicensed Contractors: Statute of Limitations Defense - Advise &amp; 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