LLC Must Register as Contractor; Member Registration Not Sufficient
Stonebrook Constr. LLC v. Chase Home Fin., No. 37868, 2012 WL 1433471 (Idaho Apr. 26, 2012)
The Idaho Supreme Court made clear that a contractor entity cannot foreclose a lien unless it is a registered contractor; registration of an LLC member is not sufficient. Here, Stonebrook performed construction services for homeowners who had given a deed of trust to Chase. Homeowners did not pay Stonebrook, so Stonebrook placed a lien on the property and commenced a foreclosure action. Chase moved to dismiss because, while one of Stonebrook’s members was a registered contractor, Stonebrook itself was not. The Court affirmed the trial court’s dismissal of the lien claim, rejecting claims of substantial compliance and unreasonably harsh results.