Constructing licensing is governed under Florida Statutes Chapter 489. Under Florida Statute s. 489.128, an unlicensed contractor has NO rights or remedies. Stated differently, an unlicensed contractor is “sh*t out of luck!”.   However, what’s been complicated, and it really shouldn’t be, is what contractors need to be licensed through the state of Florida by the Construction Industry Licensing Board (known as the CILB). A recent case out of Florida’s Third District Court of Appeal adds to the complication and serves as a reminder for contractors to be licensed in Florida.

In Southpoint Shore Management LLC v. Homexpo Miami Corp., 2025 WL 119338 (Fla. 3d DCA 2025), a homeowner went to a company with stone show room to purchase new flooring. The homeowner hired the company (with the show room) to install new high-end marble flooring along with floor leveling and soundproofing. There wasn’t any argument that this cosmetic work even required a permit. The company was not a licensed contractor and hired third parties to perform the flooring work. The homeowner claimed the work was defective and a lawsuit ensued. The homeowner claimed defective work and the company had a counterclaim for payment. The trial court granted summary judgment in favor of the homeowner finding that the contractor was an unlicensed contractor and, therefore, could not assert a counterclaim under Section 489.128. During trial, the homeowner argued the contractor should not be entitled to assert affirmative defenses because of the contractor’s lack of construction license. The court rejected this argument and a jury returned a verdict for the company and against the homeowner. The homeowner appealed arguing that the trial court was wrong to allow the company to raise affirmative defenses because it was an unlicensed contractor. The appellate court agreed with the homeowner:

In applying Chapter 489, we have held that unlicensed contractors such as [the company] cannot assert contractual defenses. See John Hancock-Gannon Joint Venture IT v. McNully, 800 So. 2d 294, 297 (Fla. 3d DCA 2001) (holding that the unlicensed contractor could not enforce his contract with the owner, and therefore, could not assert his contractual defenses). We stated: “Not only did McNully defend on the basis of his unenforceable contract with the owner, he used the contract between the owner and the general contractor to interpose defenses which are clearly prohibited by statute.” Id. at 296 (emphasis added).

Applying the clear statutory language of section 489.128 and our prior holding in McNully, we conclude that the trial court erred when it permitted [the company] to present defenses that it could not legally enforce.

Southpoint Shore Management, supra at *3.

Obviously, this is devastating as the unlicensed contractor could not assert an affirmative claim and could not assert affirmative defenses.

Here is why this adds complication. There is no state license to be a flooring contractor. It wasn’t even stated that such cosmetic work required a permit. You should not need to be a license general contractor (or building contractor or residential contractor) to install flooring. That sentiment just opens up Pandora’s box. Yes, this company hired third-parties to do the installation. But that is really of no moment because the definition of “contractor” under Chapter 489 refers to someone that does work for compensation through itself or others. In other words, if the company self-performed with its own employees the court’s ruling should have remained the same.

This case provides quite a sword that could be used in analogous cases or cases where an owner hired someone to do work that doesn’t require a state license or a permit.  Wary to unlicensed contractors in Florida – you are sh*t out of luck!!

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.