Chavira v. Armor Designs of Delaware, Inc.

356 P.3d 334, 238 Ariz. 48, 719 Ariz. Adv. Rep. 33, 2015 Ariz. App. LEXIS 142
CourtCourt of Appeals of Arizona
DecidedAugust 13, 2015
Docket1 CA-CV 14-0344
StatusPublished
Cited by1 cases

This text of 356 P.3d 334 (Chavira v. Armor Designs of Delaware, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chavira v. Armor Designs of Delaware, Inc., 356 P.3d 334, 238 Ariz. 48, 719 Ariz. Adv. Rep. 33, 2015 Ariz. App. LEXIS 142 (Ark. Ct. App. 2015).

Opinion

OPINION

PORTLEY, Judge:

¶ 1 Plaintiff Marco Antonio Chavira, doing business as Add On Power, challenges the summary judgment granted in favor of Armor Designs of Delaware, Inc., and Armor Designs, LLC (collectively, “Armor”). He contends the superior court erred by precluding him from attempting to collect for any of the work he completed for Armor. Because Chavira is a licensed contractor, he had the right to maintain an action to recover payment for the work he performed for Armor pursuant to his license. Accordingly, we vacate the judgment and remand for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 2 Chavira, a licensed and bonded electrical contractor, registered with the Arizona Registrar of Contractors, 1 was hired by Armor to disassemble equipment located at its Phoenix manufacturing plant and was paid in full. Shortly thereafter, Armor hired Chavira to reinstall the same equipment at its new manufacturing facility. Chavira performed the work.

¶ 3 Chavira sought payment, but Armor refused to pay for any of the installation work. Chavira subsequently filed a lawsuit alleging breach of contract, quantum meruit, *49 negligent misrepresentation, and bad faith. After discovery, Armor moved for summary judgment, arguing that Chavira was barred from maintaining a lawsuit by Arizona Revised Statutes (“A.R.S.”) section 32-1153, 2 because he had performed “significant work for which [he] had no license.”

¶ 4 The superior court granted Armor’s motion and dismissed Chavira’s complaint with prejudice. This appeal followed.

DISCUSSION

¶ 5 The sole issue is whether § 32-1153 bars Chavira from maintaining an action to recover any payment for work he performed if some of the work fell outside the scope of his license.

¶ 6 We independently review the grant of summary judgment to determine if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Blevins v. Gov’t Emps. Ins. Co., 227 Ariz. 456, 458, ¶ 5, 258 P.3d 274, 276 (App.2011). We construe the evidence and all reasonable inferences in favor of the opposing party; however, if we find that a reasonable jury could only find for one party, we will uphold the grant of summaiy judgment. Id.; see also Orme Sch. v. Reeves, 166 Ariz. 301, 309, 802 P.2d 1000, 1008 (1990). We will also independently review whether the court properly construed § 32-1153. See Blevins, 227 Ariz. at 459, ¶ 13, 258 P.3d at 277; Indus. Comm’n v. Old Republic Ins. Co., 223 Ariz. 75, 77-78, ¶¶ 6-8, 219 P.3d 285, 287-88 (App.2009). In interpreting the statute, we primarily rely on its language and interpret the terms according to their common meaning to give effect to the legislative intent. Id. at ¶ 7.

¶ 7 Chavira contends that because he was a licensed electrical contractor when he entered into the contract with Armor, § 32-1153 permits him to maintain his action against Armor to recover payment for, at least, his licensed electrical work. Although Armor does not challenge the fact that Chavira has an electrical license, Armor argues that because Chavira “did not have a license to perform all of the work he claims to have performed,” § 32-1153 bars him from recovering for any of his work. 3

¶ 8 Section 32-1153 provides that:

No contractor as defined in § 32-1101 shall 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 the contracting party whose contract gives rise to the claim was a duly licensed contractor when the contract sued upon was entered into and when the alleged cause of action arose.

¶ 9 The plain language of § 32-1153 prohibits an unlicensed contractor from bringing an action to recover payment for unlicensed acts. The purpose of the statute, as has been long held, is to protect the public. See Sobel v. Jones, 96 Ariz. 297, 300-01, 394 P.2d 415, 417 (1964); B & P Concrete, Inc. v. Tumbow, 114 Ariz. 408, 410, 561 P.2d 329, 331 (App.1977). We have also held that the court cannot use concepts of equity to allow an unlicensed contractor to sue to collect payment. See Crowe v. Hickman’s Egg Ranch, Inc., 202 Ariz. 113, 117, ¶ 18, 41 P.3d 651, 655 (App.2002) (citing Northen v. Elledge, 72 Ariz. 166, 173, 232 P.2d 111, 116 (1951)).

¶ 10 However, we have also stated that the plain language of the statute allows a licensed contractor, or one who has substantially complied with the licensing requirements, see WB, The Building Co. v. El Destino, LP, 227 Ariz. 302, 309, ¶ 18, 257 P.3d 1182, 1189 (App.2011), to sue for payment for work performed under the license. See Aesthetic Prop. Maint. Inc. v. Capitol Indem. Corp., 183 Ariz. 74, 77-78, 900 P.2d 1210, 1213-14 (1995) (stating that substan *50 tial compliance may be adequate when it does not defeat the statute’s general policy or purpose); Love v. Double “AA” Constructors, Inc., 117 Ariz. 41, 46, 570 P.2d 812, 817 (App.1977) (finding that § 32-1153 “was not intended to injure licensed contractors”). In fact, we have stated the statute “should not be given an overbroad construction so as to preclude partial recovery as to a valid portion of the contract.” Miller v. Superior Court In & For Pima Cnty., 8 Ariz.App. 420, 423, 446 P.2d 699, 702 (1968). Thus, we have long held that if the contract value can be apportioned between licensed and unlicensed work, then “each item of a contract will be treated as a separate unit.” Id.

¶ 11 Here, there is no dispute that Chavira is a licensed electrical contractor. He performed work for Armor; some portion of the work was covered by his license, but some apparently was not. Consequently, § 32-1153 is “not a sword” that can be used to prevent Chavira from recovering for at least that portion of the work he performed for Armor that was covered by his license. See Crowe, 202 Ariz.

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Bluebook (online)
356 P.3d 334, 238 Ariz. 48, 719 Ariz. Adv. Rep. 33, 2015 Ariz. App. LEXIS 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chavira-v-armor-designs-of-delaware-inc-arizctapp-2015.