Wilderness Building System, Inc. v. Chapman
Wilderness Building System, Inc. v. Chapman
Opinion of the Court
Kerry R. Hubble 'and Wilderness Building Systems, Inc., plaintiffs, appeal from an adverse directed verdict
Around June 1981, having bought a “log cabin kit” from plaintiffs, Charles Chapman entered into a contract to buy from plaintiffs additional materials for the construction of the cabin. Chapman also contracted for the erection of the cabin by plaintiffs. The cabin was to be built on defendants’ property for their use. Neither plaintiff was a licensed contractor. According to plaintiffs, Chapman agreed that he would be the general contractor and would employ plaintiffs to construct the cabin. Chapman denied making such an agreement. Chapman secured a building permit for the cabin, listing Hubble as the general contractor.
When the cabin had been partially completed, defendants became dissatisfied with plaintiffs' performance. Chapman requested plaintiffs to stop their work and filed a complaint against them in the Department of Business Regulation. Defendants claim they then learned for the first time that plaintiffs were unlicensed. Defendants’ attorney wrote plaintiffs, claiming plaintiffs had materially breached the construction contract. Plaintiffs filed liens against defendants’ property for the balance due for the materials and labor and brought this action against defendants, seeking payment.
Plaintiffs contend that three exceptions to the statutory bar to recovery by an unlicensed contractor apply to this case. First, relying on Lignell v. Berg,
Second, plaintiffs urge that an unlicensed contractor may recover on a theory of unjust enrichment from one who knew or should have known at the time of contracting that the contractor was unlicensed. Plaintiffs assert that defendants knew or should have known at the time of contracting that plaintiffs were unlicensed because the contract provided as follows: “Wilderness Building Systems proposes to perform all labor as necessary to complete the following by experienced or licensed personnel in good workmanlike manner.” This provision, however, is insufficient to support a finding that defendants either knew or should have known that plaintiffs were unlicensed. Thus, plaintiffs’ theory of unjust enrichment also fails.
Third, citing Motivated Manag
Finally, plaintiffs contend that Chapman, not Hubble or Wilderness Building Systems, Inc., was the contractor for the cabin construction. In support of this contention, plaintiffs rely on trial testimony that Chapman orally agreed to be the general contractor for the project. Again, absent a trial transcript, any such testimony is not before us. Moreover, even assuming such testimony was adduced at trial, it does not, without more, show that plaintiffs’ construction of the cabin did not constitute “the performance of any act for which a license is required” within the meaning of U.C.A., 1953, § 58A-1-26 (Supp. 1983). The only record evidence on which plaintiffs rely in support of their contention that Chapman was the contractor for the project is the building permit secured by Chapman for the construction of the cabin. Plaintiffs argue that under U.C.A., 1953, § 58A-1-1 (Supp. 1983) the building permit constitutes prima facie evidence that Chapman was the contractor.
At oral argument, plaintiffs’ counsel requested leave to file a trial transcript to supplement the record before us. The Utah Rules of Civil Procedure
The judgment of the district court is affirmed. Costs are awarded to defendants.
. Actually, the order was a judgment notwithstanding the verdict, since it was granted after the jury had returned a verdict for plaintiffs. See Utah R.Civ.P. 50(b).
. U.C.A., 1953, § 58A-1-26 (Supp. 1983) provides:
No contractor may act as agent or commence or maintain any action in any court of the state for collection of compensation for the performance of any act for which a license is required by this chapter without alleging and proving that he was a duly licensed contractor when the contract sued upon was entered into and when the alleged ‘caused of action arose.
. See Cruz v. Montoya, Utah, 660 P.2d 723, 728-29 (1983).
. See Clendenen v. Western Ready Mix Concrete Corp., Utah, 688 P.2d 477, 478 (1984); First Fed. Sav. & Loan Ass’n v. Schamanek, Utah, 684 P.2d 1257, 1266 (1984); Bevan v. J.H. Constr. Co., Utah, 669 P.2d 442, 443 (1983).
.Utah, 593 P.2d 800 (1979).
. Utah, 604 P.2d 467 (1979).
. Utah, 660 P.2d 233 (1983).
. Supra note 4.
. U.C.A., 1953, § 58A-1-1 (Supp. 1983) provides in relevant part:
Evidence of the securing of any construction or building permit from a governmental agency, or the employment of any person on a construction project, or the offering of any bid to do the work of a contractor as herein defined, shall be accepted in any court of the State of Utah as prima facie evidence of engaging in the business or acting in the capacity of a contractor.
.Utah R.Civ.P. 75(a) was in effect at the time this appeal was filed. It has been superseded by Rule 11 of the Utah Rules of Appellate Procedure, effective January 1, 1985.
Concurring Opinion
(concurring in the result):
Although I concur with the majority opinion that the plaintiffs cannot recover on the contract because of U.C.A., 1953, section 58A-1-26 (1983 Pocket Supp.), I do not believe that the door to equity has been closed by that provision to the extent that an unlicensed contractor should not be allowed to recover in quantum meruit for the fair value of whatever the defendants received. However, it does not appear that
The majority addresses the plaintiffs’ contention that they should be able to recover for unjust enrichment. The majority opinion suggests that the defendants’ lack of knowledge that the plaintiffs were unlicensed is somehow dispositive of the issue. I think that the defendants’ lack of knowledge is irrelevant. In all events, the issue of unjust enrichment is not properly before the Court.
Reference
- Full Case Name
- WILDERNESS BUILDING SYSTEMS, INC., and Kerry R. Hubble, Plaintiffs and Appellants, v. Charles H. CHAPMAN and Edythe S. Chapman, Defendants and Respondents
- Cited By
- 14 cases
- Status
- Published