McNairy v. Sugar Creek Resort, Inc
In McNairy v. Sugar Creek Resort, Inc., 576 So. 2d 185 (Ala. 1991), a contractor, on July 6, 1987, applied for a license and with his application deposited a cashier's check in the amount of $ 200.00 to pay for it.
On the same date, the contractor requested that his bank release certain information to the licensing board. Id. at 185-86.
The bank neglected to file the necessary paper work with the licensing board for almost a year. Id. at 186. On June 20, 1988, the bank belatedly filed the required information and the State issued the contractor a license on that date. Id.
Meanwhile, while it was not licensed, the contractor entered into a contract with Sugar Creek Resort, Inc. ("Sugar Creek"). Id. at 187-88.
At that point, it was unknown to the contractor that the bank had not sent the paperwork to the State. As a result, the contractor did some work for Sugar Creek while unlicensed. Id.
In response to a suit for non-payment of the amount due on the contract, Sugar Creek raised a no-license defense.
The Alabama Supreme Court held in favor of the contractor and against Sugar Creek because the contractor's failure to obtain a license was solely caused by his bank's oversight, and because Sugar Creek, after the contractor became licensed, repeatedly ratified and adopted the original contract by making payments. Id. at 188.