“The authorities are fairly uniform to the effect that failure to obtain a license which is required by a statute enacted solely for revenue purposes does not render contracts made by the offending party void. On the other hand, contracts 20210235-CA 7 2023 UT App 12 Northern San Juan County Coalition v. San Juan County made by an unlicensed contractor when in violation of a statute passed for the protection of the public are held to be void and unenforceable.”
How later courts described this case
- “The authorities are fairly uniform to the effect that failure to obtain a license which is required by a statute enacted solely for revenue purposes does not render contracts made by the offending party void. On the other hand, contracts 20210235-CA 7 2023 UT App 12 Northern San Juan County Coalition v. San Juan County made by an unlicensed contractor when in violation of a statute passed for the protection of the public are held to be void and unenforceable.”
- statute requiring license as means of protecting the public from irresponsible contractors would require holding contract void; licensing statute enacted solely for. revenue purposes does not render contracts made by offending parties void
- "[F]ailure to obtain a license which is required by a statute enacted solely for revenue purposes does not render contracts made by the offending party void.... [Cjontracts made by an unlicensed contractor when in violation of a statute passed for the protection of the public are held to be void and unenforceable.”
- On remand, "[t]he parties are to be permitted to amend their pleadings."
Written by the judges who cited it.
The opinion
WADE, Justice.
I concur. However, I think that the plaintiff should be given leave to amend his complaint to not only show that the date the contract was signed was after the plaintiff was a licensed contractor, but also to allege that the work was performed after he had become a licensed contractor and to ask for compensation on the grounds of quantum meruit. I suggest this because if it is shown that the contract was entered into before plaintiff procured his contractor’s license still he may be entitled to recover pay for the work which he performed after that license was procured on the basis of quantum meruit and should be able to present this theory of his case in one trial if he so desires.