Unlicensed home-improvement contractors.

Practice point: Administrative Code of the City of New York § 20-387 forbids the soliciting, canvassing, selling, performance, or obtaining of "a home improvement contract as a contractor or salesperson from an owner without a license therefor." Accordingly, an unlicensed home improvement contractor cannot recover for services rendered either on the contract or in quantum meruit.

Student note: This provision of the Administrative Code does not itself provide grounds for plaintiff to recoup fees already paid, because the law renders the contract rescinded and generally the parties should be left as they are. However, plaintiff retains the right at common law to seek restitution for payments she previously made for work that defendant failed to perform or for defective work.

Case: Wildenstein v. 5H & Co., Inc., NY Slip Op 05702. (1st Dept. 2012).

Here is the decision.

Monday’s issue: Petitioning for judicial dissolution.