Earth Trades, Inc. v. T & G Corp.
108 So. 3d 580
Fla.2013Background
- Earth Trades, Inc. performed unlicensed site work for T & G Corporation on a parking garage project between 2004 and the ensuing litigation.
- Earth Trades, unlicensed at the time, sued T & G for nonpayment; T & G counterclaimed Earth Trades breached the contract and impleaded Sealord Surety as liable.
- Earth Trades and Sealord asserted a pari delicto defense, arguing T & G knew Earth Trades lacked the required license.
- The trial court rejected the pari delicto defense and granted summary judgment for T & G.
- The Fifth District affirmed, holding section 489.128(1), as amended in 2003, precluded enforcement by unlicensed contractors, but not necessarily a pari delicto defense by the unlicensed party.
- The Florida Supreme Court accepted jurisdiction to resolve the conflict between Earth Trades and Austin Building Co. v. Rago, Ltd.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether knowledge of unlicensed status supports pari delicto under §489.128(1). | Earth Trades argues pari delicto should bar enforcement if T & G knew of the unlicense. | T & G contends the statute places onus on unlicensed contractors and knowledge does not establish equal fault. | Knowledge alone is insufficient; pari delicto does not bar enforcement against unlicensed contractors. |
| Whether amended §489.128(1) precludes the unlicensed contractor from raising pari delicto as a defense. | Earth Trades contends the defense should apply to both sides under the pre-2003 framework. | T&G argues the statute now bars enforcement by unlicensed contractors only and allows pari delicto defenses to be raised by the other party. | Amended statute allows enforcement against unlicensed contractors and does not bar the other party from seeking relief; pari delicto not available to unenforceable contractor. |
| What is the controlling interpretation of the 2003 amendments in light of prior case law (e.g., Castro, Kvaerner) and public policy? | Earth Trades relies on prior cases under older versions of §489.128. | T&G emphasizes the amendments clarify enforcement rights and public policy against unlicensed contracting. | The amendments control; only the unlicensed contractor loses enforceable rights, making knowledge of unlicensed status irrelevant to pari delicto. |
Key Cases Cited
- Castro v. Sangles, 637 So.2d 989 (Fla.3d DCA 1994) (unlicensed contracting context under older §489.128 mechanics)
- Kvaerner Construction, Inc. v. American Safety Casualty Insurance Co., 847 So.2d 534 (Fla.5th DCA 2003) (discussed unlicensed contracting under prior statute frameworks)
- Austin Building Co. v. Rago, Ltd., 63 So.3d 31 (Fla.3d DCA 2011) ( Third District acknowledged pari delicto defense in some §489.128 contexts; decision disapproved on reasoning here)
- Bateman Eichler, Hill Richards, Inc. v. Berner, 472 U.S. 299 (U.S. Supreme Court 1985) (classic formulation of in pari delicto and equal fault)
- O’Halloran v. Pricewaterhouse-Coopers LLP, 969 So.2d 1039 (Fla.2d DCA 2007) (defense described as affirmative and equitable)