![Construction Litigation Roundup: “Tear Down This Wall!” Concrete wall](https://constructiondefectjournal.com/construction_defect_law/images/nimg/090723_05-large-concrete-wall-texture-background.png)
The federal court found that the mitigation firm performed work in the nature of “alteration” and “tearing down,” which requires a Louisiana contractor’s license.
If you enter a contract to do that in Louisiana, you had better have Louisiana contractor’s license!
It is now axiomatic in Louisiana that when a Louisiana contractor’s license is required, the contract for work performed by an unlicensed contractor is an “absolute nullity,” such that the contract is deemed never to have existed. While Louisiana does not prohibit (as would be the case in certain other states) that contractor from quantum meruit/unjust enrichment recovery, who wants to rely on those noncontractual bases for recovery?
After any hurricane in Louisiana, out-of-state contractors swoop in. In the case of a water mitigation company from Texas working on a property that was water damaged by Hurricane Ida, the customer refused to pay for services rendered and then defended against payment by urging that work performed by the mitigation firm required a Louisiana contractor’s license – which the mitigation firm lacked.
Mr. Lund may be contacted at daniel.lund@phelps.com