Case Name: SUPERIOR AMERICAN HOMES v. FRY
Court: Michigan Court of Appeals
Jurisdiction: Michigan
Decision Date: 1983-11-08
Citations: 130 Mich. App. 379
Docket Number: Docket No. 65233
Parties: SUPERIOR AMERICAN HOMES v FRY
Judges: Before: Cynar, P.J., and J. H. Gillis and Wahls, JJ.
Reporter: Michigan appeals reports; cases decided in the Michigan Court of Appeals.
Volume: 130
Pages: 379–382

Head Matter:
SUPERIOR AMERICAN HOMES v FRY
Docket No. 65233.
Submitted May 18, 1983, at Marquette.
Decided November 8, 1983.
Superior American Homes, a Wisconsin corporation, and Sanford’s Real Estate Agency brought an action in the Menominee Circuit Court against Vernon Fry to recover the contract price of a premanufactured home built by Superior and sold to Fry by Sanford Peterson, doing business as Sanford’s Real Estate Agency. The jury found that the selling .agent of the home in question was Sanford’s Real Estate Agency, New Homes Division, a partnership, and not Sanford Peterson, an individual doing business as Sanford’s Real Estate Agency. Sanford Peterson was the holder of a residential builder’s license but the partnership and the other partners were not. The court declined to direct a verdict for defendant for failure to comply with the residential builders act. The court, Russell W. Bradley, J., granted a judgment for plaintiffs on their claim and for defendant on his counterclaim. Defendant appealed. Held:
A partnership which is subject to the residential builders act is not in substantial compliance where only one partner is licensed in his individual capacity. Such a partnership may not maintain an action for compensation under any contract for which a license is required under the act.
Reversed.
Cynar, P.J., dissented. He would hold that there was substantial compliance in this case and would affirm.
Opinion of the Court
1. Licenses — Residential Builders — Partnerships — Substantial Compliance.
A partnership is not in substantial compliance with the residential builders act where only one partner is. licensed in his individual capacity; such a partnership may not maintain an action for compensation under any contract for which a license is required under the act (MCL 338.1516; MSA 18.86[116]).
Reference for Points in Headnotes
[1, 2] 13 Am Jur 2d, Building and Construction Contracts §§ 130, 131.
Dissent by Cynar, P. J.
2. Licenses — Residential Builders — Partnerships — Substantial Compliance.
A partnership is in substantial compliance with the residential builders act where only one partner is licensed in his individual capacity and such a partnership may maintain an action for compensation under any contract for which a license is required under the act (MCL 338.1516; MSA 18.886[116]).
Roy T. Traynor and Joel L. Massie for plaintiff.
Doyle, Ladd, Philipps & Justin, P.C. (by Thomas A. Ladd), for defendant.
Before: Cynar, P.J., and J. H. Gillis and Wahls, JJ.

Opinion:
Per Curiam.
Defendant appeals as of right from a jury verdict awarding plaintiffs $21,000.
Plaintiffs originally brought this action to recover the contract price of a premanufactured home built by plaintiff Superior American Homes and sold through Superior's agent, Sanford Peterson, doing business as plaintiff Sanford's Real Estate Agency. Defendant counterclaimed, alleging, inter alia, defective construction, misrepresentation, fraud and breach of warranty. Plaintiffs do not appeal the jury award of $6,320 to defendant on this counterclaim.
On appeal, defendant argues that the trial court erred by failing to direct a verdict in defendant's favor after the jury found that the selling agent of the home in question was Sanford's Real Estate Agency, New Homes Division, a partnership, and not Sanford Peterson, an individual doing business as Sanford's Real Estate Agency. The trial court ruled that the licensing of one partner in his individual capacity was "substantial compliance" with the requirements of the residential builders act then in effect, MCL 338.1501 et seq.; MSA 18.86(101) et seq.
The residential builders act required that any individual, firm or partnership which engaged in the construction of residential structures must be licensed, MCL 338.1501, 338.1502; MSA 18.86(101), 18.86(102), with one penalty being that a person engaged in the business of a residential builder without a license may not "bring or maintain any action in any court of this state for the collection of compensation for the performance of any act or contract for which a license is required". MCL 338.1516; MSA 18.86(116).
In the instant case, plaintiff Superior American Homes was not licensed in this state. Sanford's Real Estate Agency, New Homes Division, the agent of Superior American, was not licensed as a partnership, although Sanford Peterson, individually, was licensed. Contrary to the trial court's ruling, there was no substantial compliance on the part of the plaintiffs with the act. See Bernard F Hoste, Inc v Kortz, 117 Mich App 448; 324 NW2d 46 (1982). The jury award to plaintiffs of $21,000 is, therefore, reversed.
Our disposition of defendant's first issue makes it unnecessary to address defendant's second issue on appeal.
Reversed.