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What type of legal action can I take to recoup money that is owed to me

Michigan

I looking for some advice for my problem and which way I should proceed. I’m a cement contractor and I’m not licensed. Over the past winter I decided I was going the take the builders course to become a licensed build. I took the 60 course that complies with the state of Michigan to become a licensed contractor. I submitted the completion of the course to the state of Michigan and was granted acceptance to the state certified test to become a builder if I passed the two part builders exam. I took longer to get approval from the state because I forgot to send a scanned copy of my drivers license so my application took a couple months for them to approve to take the exam. My concrete season start and I was unable to take the test because I became very busy with my work schedule. My buddy who took the course as well was in the 60 hour class with me along with my brother as well who works for my company. I have all the appropriate insurances and EIN # and pay my taxes to Uncle Sam and the state. My friend at this time was going through the appropriate avenues to get drawings made and to build his dream garage and addition to his home. We had talked for months about have my company do his concrete work because he had seen my work and raved how beautiful my specialty concrete work was. So it came time that his permits were pay and approved by the city to begin his addition and garage addition for his home. So I started the job we had never really discussed what I was to going to be payed for service rendered on his property to pour his structure footings for his garage and addition to his home. Along with an exposed aggregate ( diamond cut patio) along with an acid etched boarders And Stencils stamped star impression .with was also acid stain star with step liners and acid staining as well on though. He put off for weeks paying me anything finally came the time we were going to meet to discuss his bill and reimbursement of material purchase on my amx platinum card for his job. Of course I was payed for any material or machinery for his job or my company’s machinery and only payed 2500 of my labor bill which I told him I would do a majority of the work for the labor cost of my employees and a labor cost for myself since he was a friend of mine at the time and I was doing him a favor by only doing labor on this build for him. We’re if I were to bid this job it would have been 35000 + job. But again he was a friend so I was doing the friendly thing. Can I Legally go after him since I was unlisence and he knew this because with both took the course together and both were going to get our builders license. Would he be considered the general contractor since he is the homeowner and pulled his own permits for the work to be performed. And in the state of Michigan home owners can pull their own permits and it is up to them to make sure things are up to the Michigan code book. Please tell me there is some course of action I can take. He put my company in the hole of approx 20000

1 reply

Oct 23, 2019
I'm very sorry for your situation, but Michigan law treats unlicensed residential builders very harshly. From the facts you present, I do not see that you have a legal remedy. MCL 339.2412(1) prohibits an unlicensed residential builder from bringing or maintaining an action for the collection of compensation by filing or pursuing a complaint, crossclaim, counterclaim, or third-party claim against a homeowner. Even though your friend apparently knew you were unlicensed, that won't change the outcome in the courtroom. In one of the leading decisions on this issue, the Michigan Supreme Court ruled against an unlicensed builder even where the homeowners knew the roofing contractor was unlicensed when they hired him to furnish and install a custom slate roof.  See, Stokes v Millen Roofing,  466 Mich 660; 649 NW2d 371 (2002).
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