Georgia Contractors Forfeit Contract Rights If Performing Work While Unlicensed

A recent Georgia Court of Appeals case highlights the serious risks contractors face if they operate in Georgia without a valid contractor's license: they forfeit all rights to enforce their contracts.

In Saks Management and Associates, LLC v. Sung General Contracting, Inc.¹, general contractor Sung General Contracting, Inc. ("Sung General") entered into a contract with Saks Management and Associates, LLC ("Saks") to renovate an apartment complex owned by Saks.² Saks terminated Sung General for failure to timely and properly complete its work, and then brought a lawsuit against Sung General to recover its damages.³ Sung General responded to the lawsuit with counterclaims against Saks for nonpayment. The parties submitted dueling motions for summary judgment on their claims which were denied by the trial court, and both parties appealed.⁴