On appeal is an order of the master-in-equity holding that an unlicensed general contractor may not bring an action to enforce a construction contract in excess of $30,000.00.
FACTS
W & N Construction Company, an unlicensed general contractor,
DISCUSSION
It is illegal for general contractors who undertake construction in excess of $30,000.00 to do so without first obtaining a license in this state. S.C. Code Ann. §§ 40-11-10, 40-11-100 and 40-11-290
In Berkebile v. Outen, 311 S.C 50,
It is a well-founded policy of law that no person be permitted to acquire a right of action from their own unlawful act and one who participates in an unlawful act cannot recover damages for the consequence of that act. This rule applies at both law and in equity and whether the cause of action is in contract or in tort____
Jackson v. Bi-Lo Stores, Inc.,
A number of jurisdictions adopt the view that an unlicensed contractor may not recover on a contract even though the relevant licensing statute contains no express provision relating to the enforceability of the contract. See Dougherty, Failure of Building Contractor to Procure Business or Occupational License As Affecting Enforceability of Contract or Right of Recovery for Work Done, 44 ALR (4th) 271, §§ 11,12 (1986). The rationale is that such licensing statutes protect the public and to permit unlicensed contractors to circumvent licensing requirements by payment of a small fine would defeat the legislative intent. Id. We concur with these authorities. Accordingly, we affirm the ruling of the master.
Affirmed.
Notes
The order of reference provides for direct appeal to this Court.
W & N’s license was revoked in 1991 when its secretary failed to pay its taxes.
Residential home builders are similarly prohibited from undertaking the business of home building without first obtaining a license. However, S.C. Code Ann. § 40-59-130 (1986) specifically prohibits unlicensed home builders from bringing any action to enforce the provisions of any contract entered into without a valid license.
