Opinion ID: 1303924
Heading Depth: 2
Heading Rank: 2

Heading: Equitable Defense to Application of Statutory Bar.

Text: Triple B argues that this Court should recognize certain equitable defenses to the assertion of the statutory bar. Where the contractor's failure to obtain a proper license was induced by fraud on the part of the recipients of the work, Section 60-13-30 should not bar recovery by the contractor. See Fischer v. Rakagis, 59 N.M. at 470, 286 P.2d at 316-17 (quoting Kaiser v. Thomson, 55 N.M. at 275, 232 P.2d at 145 (Sadler, J., specially concurring)). Triple B here raises the equitable defenses of estoppel and unjust enrichment. We need not determine whether a defendant may be estopped from asserting the Section 60-13-30 bar, for in this case it is obvious that Triple B failed to establish the elements of equitable estoppel. The party to be estopped, Brown & Root, did not engage in conduct amounting to a false representation and did not have knowledge of the real facts; the party claiming estoppel, Triple B, did not lack means of ascertaining its own status and did not rely to its detriment upon misleading conduct by Brown & Root. Cf. Capo v. Century Life Ins. Co., 94 N.M. 373, 377, 610 P.2d 1202, 1206 (1980) (elements of equitable estoppel). We will not recognize an equitable defense of unjust enrichment because the Legislature in Section 60-13-30 necessarily authorized the unjust enrichment of the recipients of work performed by unlicensed contractors. In order to protect the public from irresponsible or incompetent contractors, see Peck v. Ives, 84 N.M. at 63, 499 P.2d at 685, the Legislature chose to harshly penalize unlicensed contractors by denying them access to the courts to collect compensation for work performed. Its policy must override the judicial principle that disfavors unjust enrichment. Cf. Schnoor v. Griffin, 79 N.M. 86, 91, 439 P.2d 922, 927 (1968) (illegal gambling contract held unenforceable).