Cautionary Tales for Cautious Contractors: Insights from Two Recent Florida Decisions

What Do You Need to Know?

• Increased demand, inflation, and labor shortages have led to a rising number of non-payment and defect claims within the construction industry.
• Recent Florida case law emphasizes the need for companies to implement best practices during litigation, such as timely engaging and maintaining competent legal counsel throughout litigation, to avoid adverse default judgments.
• Also, Florida construction companies must register their licensed contractor as the company’s qualifying agent with the state before contracting or starting work to avoid a defense to payment.
  
  

Florida’s construction industry is experiencing a unique set of factors. On the one hand, inflationary pressure and labor shortages have made it more difficult to efficiently complete projects. On the other hand, demand for construction services continues to skyrocket as the population grows and older buildings need updating or replacing. Unfortunately, these factors have resulted in increased litigation, because more work inevitably leads to more claims for non-payment and construction defect.

Two recent cases provide insight into some best practices that construction companies should employ to prepare for litigation.

No Payment Without Registered Qualifying Agent

The first is CAM Bradford Homes, LLC v. Arrants, *** So. 3d ****, Case No. 5D2024-0849 (Fla. 5th DCA Jun. 20, 2025). In this case, a construction company was hired to build a single-family home for property owners. The company’s principal was a certified general contractor who pulled the permits in his own name and supervised the project. Unfortunately, the homeowners terminated the project, and the contractor was compelled to file a lawsuit to recover sums it contended were due and owing.

The homeowners defended by claiming that, because the construction company failed to apply with the Florida Department of Business and Professional Regulation for its principal (who was a licensed contractor) to serve as the construction company’s qualifying agent, the construction company was statutorily barred from recovering anything from the homeowners.

The trial court entered judgment for the homeowners, and Florida’s Fifth District Court of Appeal affirmed, holding: “Because it was undisputed that a qualifying agent never applied with the Department on behalf of Appellant, the business was unlicensed when it executed the contract with Appellees, and the trial court did not err in finding it could not enforce the contract.”

Corporate Entities Risk Default Judgment Without Litigation Counsel of Record

The second case did not involve a construction company but provides important guidance no less. In Winter Park Hospitality, LLC v. On Target Staffing, LLC, *** So. 3d ****, Case No. 6D2024-1525 (Fla. 6th DCA Sep. 8, 2025), the defendant corporation fired its defense attorneys in the middle of litigation after an unsuccessful mediation.

The trial court entered an order relieving the defendant company’s fired lawyers as counsel of record and directing the defendant corporation to have new defense counsel appear within 10 days (because Florida law prohibits corporations from representing themselves without a lawyer outside of small claims court). The corporation failed to do so and instead filed a request through a non-lawyer employee asking for more time.

The trial court rejected that request and entered a default judgment against the defendant company, which it refused to set aside for excusable neglect. The Sixth District Court of Appeal affirmed.

Conclusion

These recent cases provide two best practices for all Florida construction companies to employ: (i) if working in a licensed trade, register your license holder as the registered qualifying agent with the Florida Department of Business and Professional Regulation before contracting or performing any work; and (ii) when in litigation, be sure to have competent counsel of record at all times, and respect and comply with all trial court deadlines.

About Our Author

Richard N. Asfar is a leading member of the Adams & Reese Construction Practice Group and a Partner in the firm’s Tampa office. Ric is a civil litigator and appellate advocate with nearly two decades of experience representing individuals, government entities, interest groups, and businesses in construction litigation, insurance coverage, employment litigation, appellate advocacy, and commercial disputes.