On October 6, 2015, the Court of Special Appeals of Maryland released its opinion in Glen Valley Builders, LLC v. James Whang, et al. In Glen Valley an LLC entered into a contract to improve a residence. The contract was guaranteed by the principal owner of Glen Valley. Disputes arose between Glen Valley and the homeowners and the homeowners refused to pay the balance that the general contractor claimed was due. When the general contractor filed suit for the balance due under its contract with the homeowners, the homeowners filed a motion for summary judgment. The Circuit Court ruled that since the LLC did not have a Maryland Home Improvement License, the contract was unenforceable despite the fact that the principal of the LLC had a Montgomery County New Home Builders License. On appeal the LLC argued that it had substantially complied with the Maryland Home Improvement License requirements because the principal of the LLC had guaranteed the contract and he possessed a Montgomery County New Home Builders License. The Court of Special Appeals went through a detailed analysis of the purpose of the Maryland Home Improvement License and determined that there was a factual dispute as to whether the possession of the Montgomery County New Home Builders License by the principal of the LLC was sufficient to prevent the granting of the motion for summary judgment. The Court of Appeals remanded the case back to the Circuit Court to determine whether there was substantial compliance with the Maryland Home Improvement License requirements given that the principal of the LLC had a Montgomery County New Home Builders License.

This decision emphasizes the perils of general contractors doing work without the required Maryland Home Improvement license and the extensive litigation that has been generated and will continue to be generated in this case for both sides of this dispute. It is clear that a general contractor who acts without the required Maryland Home Improvement license is acting at his or her or its own peril.