Burr Alert: Ground Control, LLC v. Capsco Industries, Inc., et. al.: Opening The Door To Claims By Unlicensed Contractors In Mississippi


The Mississippi Supreme Court, in a case of first impression, recently addressed claims for nonpayment by contractors performing work in the state in violation of Miss. Code Ann. Section 31-3-15, which requires contractors performing work to be licensed with the Mississippi State Board of Contractors. Specifically, in Ground Control, LLC v. Capsco Industries, Inc., et.al., No. 2011-IA-00928- SCT, --- So.3d ---, 2013 WL 2436665 (Miss. June 6, 2013), the Supreme Court held that an unlicensed 2nd tier subcontractor may bring claims against a 1st tier subcontractor with which it contracted for unjust enrichment and quantum meruit, for its actual costs, at least where both parties to the contract were unlicensed, and both were aware of the sub-subcontractor’s failure to comply with licensing under Section 31-3-15.

In Ground Control, a plaintiff sub-subcontractor, Ground Control, LLC (“Ground Control”), an unlicensed, out-of-state construction firm, was hired by subcontractor Capsco Industries (“Capsco”), another unlicensed, out-of-state contractor, to perform work on a project located in Biloxi, Mississippi, owned by Harrah’s Casino. Neither Harrah’s nor the general contractor, W.G. Yates and Sons (“Yates”), were parties to the Ground Control-Capsco contract. Both Ground Control and Capsco were aware, when signing the contract in December 2007, that Ground Control was not licensed to do construction contracting in Mississippi, in violation of Section 31-3-15. Ground Control performed work on the project for almost a year, installing water, sewage, and storm-drain lines, until it was terminated by Yates in October.

Please see full Alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Burr & Forman | Attorney Advertising

Written by:


Burr & Forman on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.