{"id":894688,"date":"2018-08-08T11:55:33","date_gmt":"2018-08-08T17:55:33","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=894688"},"modified":"2018-08-08T11:55:33","modified_gmt":"2018-08-08T17:55:33","slug":"consequences-exceeding-limitmaybe","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/consequences-exceeding-limitmaybe\/","title":{"rendered":"Consequences for Exceeding the Limit\u2026Maybe\u2026"},"content":{"rendered":"<p>I&#8217;Ashea Myles-Dihigo | <a href=\"http:\/\/abaconstructionforumdivision1.blogspot.com\/2018\/08\/consequences-for-exceeding-limitmaybe.html?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+TheDisputeResolver+%28The+Dispute+Resolver%29\" target=\"_blank\" rel=\"noopener\">Leitner, Williams, Dooley &amp; Napolitan<\/a> | August 3, 2018<\/p>\n<div>Sometimes I speed\u2026okay, most times I speed.\u00a0\u00a0Not anything dangerous, but I do keep up with the flow of traffic on the interstate.\u00a0\u00a0Don\u2019t judge.\u00a0\u00a0With a daily commute into the office that is always over an hour, any bit of time savings is justified in my opinion.\u00a0\u00a0<a href=\"https:\/\/3.bp.blogspot.com\/-2jh4jPatNHQ\/W2Sz5urd5_I\/AAAAAAAAARE\/77azxz07DEAGsOOfqJmtfTcTfpJyGz_6ACLcBGAs\/s1600\/I%2527Ashea%2BPost.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/3.bp.blogspot.com\/-2jh4jPatNHQ\/W2Sz5urd5_I\/AAAAAAAAARE\/77azxz07DEAGsOOfqJmtfTcTfpJyGz_6ACLcBGAs\/s320\/I%2527Ashea%2BPost.jpg\" width=\"320\" height=\"144\" border=\"0\" data-original-height=\"240\" data-original-width=\"528\" \/><\/a><\/div>\n<div>While I may be able to justify exceeding the speed limit as I travel down the interstate, the Tennessee Court of Appeals has recently clarified the effects of exceeding the monetary limits of your general contractor\u2019s license in its holding in\u00a0<i>Pickens v.\u00a0\u00a0Underwood.<\/i>\u00a0\u00a0In that case, timing was everything.\u00a0\u00a0General contractor, Pickens, entered into a contract to construct a house for the Underwoods.\u00a0<i>Pickens v. Underwood<\/i>, No. E2017-02120-COA-R3-CV, 2018 Tenn. App. LEXIS 322, at *2-3 (Ct. App. June 12, 2018).\u00a0\u00a0The parties entered into their contract on June 2, 2008.\u00a0<i>Id.<\/i>\u00a0\u00a0\u00a0The dispute over final payment arose on May 9, 2009.\u00a0\u00a0<i>Id.<\/i>\u00a0at *3.\u00a0\u00a0At the time the parties entered into the contract, Pickens\u2019 limit on his contractor\u2019s license was $350,000, yet at the time the project was complete, the final bill was over $670,000.\u00a0\u00a0<i>Id.<\/i>\u00a0When the Underwoods failed to pay for the work, Pickens filed suit for breach of contract, unjust enrichment, promissory fraud and mechanics\u2019 and materialmen\u2019s lien.\u00a0<i>Id.<\/i><\/div>\n<div><\/div>\n<div>The Underwoods counter sued for fraud, cost overruns, violations of the Tennessee Consumer Protection Act and for entering into a contract in excess of the contractor\u2019s license limit.\u00a0<i>Id.\u00a0<\/i>The complaint in this matter was filed on July 21, 2009.\u00a0<i>Id.<\/i>\u00a0at *32.\u00a0Counsel for Pickens agreed to stipulate that he was an unlicensed contractor and thereby agreed to limit his damages to actual documented expenses.\u00a0\u00a0<i>Id.<\/i>\u00a0at *3.\u00a0\u00a0The trial court disagreed with the stipulation and confirmed that Pickens, though over the monetary limit of his contractor\u2019s license, was licensed for purposes of Tennessee Code Annotated\u00a0\u00a7\u00a7\u00a062-6-101, et seq.\u00a0<i>Id<\/i>. at *4.\u00a0\u00a0The Underwoods appealed.<\/div>\n<div><\/div>\n<div>The Court of Appeals affirmed. They reasoned that just prior to the filing of the parties\u2019 complaint, the Legislature made a substantive change to Tennessee Code Annotated\u00a0\u00a7\u00a062-6-103 which governed the monetary limits on contractors\u2019 licenses.\u00a0<i>Id<\/i>. at *32.\u00a0\u00a0The effect of the amendment expanded the limitation of actual documented expenses to\u00a0<i>any<\/i>\u00a0contractor required to be licensed under the statute and rules whereas before the limitation only applied to unlicensed contractors.\u00a0<i>Id.<\/i><\/div>\n<div><\/div>\n<div>The Court held that the date the parties entered into the contract was controlling regarding which statute should apply in the case.\u00a0<i>Id<\/i>. When Pickens entered into the contract and performed the work, he was not subject to the limitation because he was properly licensed under the old Tenn. Code. Ann.\u00a0<a href=\"https:\/\/www.blogger.com\/null\" name=\"_Hlk520624849\">\u00a7<\/a>\u00a062-6-103.\u00a0\u00a0The Court declined to apply the new code changes retroactively to the pre-existing contract.\u00a0\u00a0Therefore, his recovery would not be limited to actual documented expenses as reflected in the new schematic.\u00a0<i>Id.<\/i>\u00a0at *33.<\/div>\n<div><\/div>\n<div>While it is never a good idea to exceed the monetary limits of your contractor\u2019s license, if you happen to find yourself in that position, you may still be able to recover the full contractual price as damages.\u00a0\u00a0Based on the holding in\u00a0<i>Pickens<\/i>, the Court will look to the law\u00a0<i>in effect at the time<\/i>\u00a0of the contract to determine whether or not your recovery is limited.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;Ashea Myles-Dihigo | Leitner, Williams, Dooley &amp; Napolitan | August 3, 2018 Sometimes I speed\u2026okay, most times I speed.\u00a0\u00a0Not anything dangerous, but I do keep up with the flow of traffic on the interstate.\u00a0\u00a0Don\u2019t judge.\u00a0\u00a0With a daily commute into the office that is always over an hour, any bit of time savings is justified in&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/consequences-exceeding-limitmaybe\/\">Continue reading <span class=\"screen-reader-text\">Consequences for Exceeding the Limit\u2026Maybe\u2026<\/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":[14],"tags":[9895,10552,10551,352],"class_list":["post-894688","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-contractors-license","tag-monetary-limits","tag-tennessee","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>Consequences for Exceeding the Limit\u2026Maybe\u2026 - Advise &amp; 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