Critical Ruling: Third Florida District Court of Appeals Clarifies What Contractor Work Can be Performed Without a License Under § 489.128 & § 489.8419

Florida’s Third District Court of Appeal recently issued a significant decision on contractor work, Incident365 Florida, LLC v. Ocean Pointe V Condo. Ass’n, Inc., 49 Fla. L. Weekly D2004 (Fla. 3d DCA Oct. 2, 2024).

The case revisits the enforceability of contracts involving unlicensed contractors under § 468.8419 of the Florida Statutes.

The case arose from a dispute between Incident365, a mold remediation and disaster recovery company, and several Ocean Pointe Condominium Associations.

Following Hurricane Irma, Incident365 contracted with these associations to provide extensive water and mold damage repair services. However, after an initial disbursement, the condominium associations halted payment, arguing that Incident365 lacked the necessary contractor license to perform many of the contracted tasks, thereby voiding the contract.

In the initial trial, the Monroe County Circuit Court ruled in favor of the associations, aligning with the argument that Incident365’s services required a contractor’s license under Florida law.

The Circuit Court based its decision on definitions found in § 489.105(3)(b), which require licensure for individuals engaged in activities like structural repairs or alterations. However, the Third District Court of Appeal overturned this decision, highlighting that some of Incident365’s activities—such as water extraction, dehumidification, and mold mitigation—do not necessarily fall under activities defined as “contractor” work in the statutory sense.

The court emphasized that categorizing all forms of cleanup and remediation as requiring a contractor license could lead to unintended outcomes, like classifying basic sanitation services as licensed work.

The appellate court’s reversal remanded the case back to the lower court, clarifying that Florida law does not uniformly require a contractor’s license for disaster recovery tasks like mold remediation and water damage repair.

However, the appellate court also pointed out that work involving structural repairs or improvements may still require a license.

This ruling, therefore, underscores the importance of carefully assessing contract language and regulatory requirements for each task to determine licensing needs, especially in hurricane-prone regions where contractors frequently perform recovery work. This decision could shape future licensing-related litigation in Florida, particularly involving claims in the aftermath of natural disasters.

For more information regarding construction claims or litigation, contact one of our experienced construction attorneys at 305-570-2208. You can also email our lead attorney Eduardo directly at eduardo@ayalalawpa.com.   

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[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].