Contractor May Not Bring Suit if Bond Has Lapsed, Court of Appeals Rules

In Abacus Fine Carpentry, LLC v. Wilson, Division I of Washington’s Court of Appeals ruled that a contractor’s registration is suspended by operation of law if its bond lapses, regardless of whether the Department of Labor and Industries takes action to suspend the registration or reflects on its website that the contractor is duly registered. For contractors, this decision reinforces the need to ensure they keep their bonds and registration current in order to bring suit to collect on money owed under their contracts. They cannot rely on what is reflected on L&I’s website. Even if the Department’s website reflects that a contractor’s status is “registered,” the contractor cannot bring suit if its bond has actually lapsed. The Department’s website is for “informational” purposes only and has no impact on the actual legal status of a contractor. For those in construction disputes who have been sued by their contractors for non-payment, the Court of Appeals’ ruling makes discovery into the bond and registration status of a contractor an even more important tool, rather than reliance on what is reflected on the Department’s website.