Platt v. Locke

358 P.2d 95, 11 Utah 2d 273, 1961 Utah LEXIS 137
Utah Supreme Court·Decided January 3, 1961·No. 9238·Published·Cited by 9 cases

Opinion

WADE, Chief Justice.

Defendant C. L. Locke appeals from a judgment awarding plaintiff J. Lowell Platt, doing business as Crystal Pools, Inc., the amount which the court found owing to him under a written contract dated April 1, 1958, for the construction of a swimming pool. Defendant Locke claims that Platt was not entitled to recover (1) because he *275 had no specialty license to construct swimming pools, (2) because Platt was doing business under an assumed name but had not filed in the Salt Lake County Clerk’s office, where his principal place of business was located, an affidavit setting forth that he was conducting such business under an assumed name as required by Sec. 42-2-1, U.C.A.1953, and (3) because Platt made the contract as Crystal Pools, Inc., when there was in fact no such corporation. After a short review of the facts we will consider these points in the order stated.

(1) Prior to the changes in contractor’s license statutes of 1957 our statutes authorized the issuance of only one class or kind of contractor’s license. 1 Such license at that time had about the same coverage as is presently covered by three classes with additional subdivisions. 2 The general building contractor’s license is one of those classifications. It covered building construction requiring “the use of more than two unrelated building trades or crafts or to do or superintend the whole or any part thereof.” 3 Another of such classes is the specialty contractor’s license requiring special skill or the use of specialized building trades or crafts. 4 The administrator of the department is authorized to classify specialty contractors into a number of different classifications and require a separate license for each of such classifications. 5 After the department was organized and the administrator appointed, one of such classifications requiring a separate license was for a contractor constructing swimming pools.

Prior to the 1957 enactment plaintiff Platt was a duly licensed contractor and such license was regularly renewed for 1958. On April 1, 1958, the date of this contract, the department administrator had classified contractors building swimming pools as requiring a specialty contractor’s license and notified plaintiff of such requirement on May 12, 1958, and plaintiff obtained such a license the next day, May 13. Plaintiff continued to construct the swimming pool for defendant until May 30, 1958, when defendant Locke refused to pay the amount past due and owing to plaintiff under the terms of such contract. An argu *276 ment ensued and defendant refused to allow plaintiff to continue the construction of the swimming pool unless he would agree to also install the gas and water lines to such swimming pool. Plaintiff refused to do this work in addition to what the contract required whereupon defendant ordered him off the place.

(1) Undoubtedly these contractor’s license statutes were intended to protect the general public. So ordinarily the failure of a contractor to obtain the required license before engaging in such business would prevent a recovery. 6 But this is an unusual situation. Prior to 1957 no specialty license was authorized or obtainable. Only one class of contractor’s license was authorized under the former statutes regardless of the type of work such contractor was doing. The trial court held that no specialty contractor’s license was required under the 1957 statute although such holding was contrary to the views of the head of the contractor’s license department.

The 1957 statutory provisions requiring a separate license for specialty contractors as designated by the administrator of that department are not self-executed. These provisions did not specify what specialty licenses were required. That was left to the administrator and his advisors to determine and put into effect after the department was reorganized and this problem considered. 7 A holding that a contractor such as plaintiff who entered into a specialty contract with no knowledge or notice that a license therefor was required under these circumstances might work grave hardship to such contractor. For without any notice or knowledge or lack of diligence in finding out such a requirement such a contractor might be barred from recovering for honest and efficient services rendered because he did not know that a specialty license was required. The state by giving plaintiff notice of such requirement seems to recognize the possibility of such grave injustice, and Laws of Utah 1957, Chapter 115, Sec. 13, same as 1959 Pocket Supplement to Volume 6, U.C.A. 1953, Sec. 58-23-13, although somewhat indefinite, seem to recognize the right of a licensed contractor to continue in the same contracting business as he had engaged in prior to the 1957 change by merely renewing his contractor’s license which previously existed. That section provides:

“(1) All licenses issued under the provisions of this act, unless sooner suspended or revoked as herein provided, shall elapse and expire on December 31 of each year.
*277 “(2) The administrator shall, at least •thirty days prior to such expiration ■date, notify each licensed contractor of .such expiration * * *
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“(4) All licensed contractors in the •state as of the effective date of this act shall be entitled to continue the business of contracting upon complying with the provisions of this act relating to the filing of renewal applications, fees, as herein provided.”

Although this last provision is •somewhat indefinite the effect thereof is to .allow a contractor to continue to do the same contracting business which he was •entitled to do under his license obtained pursuant to the statute prior to the 1957 changes for at least a reasonable length of time after notice that such changes had been effected. Under this holding plaintiff’s recovery was not barred by his failure to obtain a specialty license to contract swimming pools before entering into this contract on April 1, 1958, and since he is not guilty of failure to act diligently in obtaining a specialty license after receiving notice that such was the requirement, plaintiff is entitled to recover in accordance with the trial court’s judgment.

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Platt v. Locke, 358 P.2d 95, 11 Utah 2d 273, 1961 Utah LEXIS 137 (Utah 1961).

358 P.2d 95 (Platt v. Locke) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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