Background
Samuel Lee Services LLC, a Montana restoration company doing business as South Pacific Environmental, performed emergency mold-remediation work at Heather Bangeman’s Idaho home. The company billed $44,451.36 but was not registered as an Idaho contractor under the Idaho Contractor Registration Act.
SLS sued Bangeman for unjust enrichment, alleging that she withheld insurance proceeds intended to pay for its work. Bangeman moved to dismiss, arguing that Idaho law bars an unregistered contractor from suing to recover compensation for contracting work. After considering a declaration submitted by SLS, the district court treated the motion as one for summary judgment and dismissed the claim.
The Court’s Holding
The Idaho Supreme Court affirmed. Idaho Code section 54-5217(2) unambiguously bars an unregistered contractor from bringing an action in Idaho courts to recover for construction work performed while unregistered.
The Court rejected SLS’s request for an equitable exception based on unjust enrichment. Its prior cases allow equitable recovery only for severable work performed after a contractor becomes registered during a project. SLS never registered, and it sued the homeowner—the member of the public the registration statute is designed to protect. The Court therefore held that its asserted good faith and Bangeman’s alleged receipt of insurance proceeds could not overcome the statutory bar. The Court declined to award Bangeman attorney fees on appeal because SLS raised a genuine legal issue.
Key Takeaways
- An Idaho contractor that never registers cannot sue for payment for work performed while unregistered.
- Equitable claims do not permit recovery for pre-registration work merely because denying recovery may benefit the property owner.
- Post-registration equitable recovery may be available only for severable work performed after registration.
Why It Matters
The decision strictly enforces Idaho’s contractor-registration requirement in disputes between contractors and homeowners. Contractors performing emergency or out-of-state work in Idaho must register before providing services if they want access to Idaho courts to seek compensation.