License Suspension

In a November 2, 2024 decision, the Florida Court of Appeals, Second District reversed the Board’s order in its entirety that granted the homeowners’ recovery, noting it was contrary to law.

The Appellant is a licensed contractor that appealed a final order of the Dept. of Business and Professional Regulation, Construction Industry Licensing Board.  The Order awarded the homeowners $50,000 from the Florida Homeowners’ Construction Recovery Fund and resulted in the suspension of the Appellant’s license.

The Appellant had contracted to build a single-family home in 2017; however, he was unable to finish it and sought bankruptcy protection personally and for his business. Another contractor completed the home. Although the homeowners were allowed to file an action to ensure their eligibility to seek proceeds from the Florida Homeowners’ Construction Recovery Fund by the bankruptcy court, they failed to seek or to obtain final judgment. The Fund was established “to compensate aggrieved Florida homeowners who are wronged by specific misconduct by licensed residential construction contractors” as a last resort. In order to recover from the Fund, the law requires that a judgment or other award has been entered.  (See DeMaria v. Constr. Indus. Licensing Bd., 386 So. 3d 208, 211 (Fla. Dist. Ct. App. 2023).)

Given that the homeowners failed to seek a final judgment for recovery, even with the consent of the bankruptcy court, the Board’s order was contrary to law.

Order reversed; Board shall dismiss the homeowners’ claim and reinstate Applicant’s license.