Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 8

BACKGROUND AND FACTS?The United Arab Emirates (UAE) held a competition for the design of a new embassy in Washington, D.C. At the conclusion of the competition, the UAE informed Elena Sturdza-an architect licensed in Maryland and Texas but not in the District of Columbia-that she had won. Sturdza and the UAE began to negotiate a contract. For two years, they exchanged proposals. Then, without explanation, the UAE stopped communicating with Sturdza. No contract between the UAE and Sturdza was ever signed. Later, Sturdza learned that the UAE had contracted with a District of Columbia architect, Angelos Demetriou, to use his design for its embassy. Sturdza filed suit against the UAE for breach of contract, claiming that Demetriou's design copied many of the features that were hallmarks of her design. The district court issued a summary judgment in the UAE's favor. Sturdza appealed.
IN THE LANGUAGE OF THE COURT
glickman, Associate Judge:
* * * * * * * Sturdza argues that the District's architectural licensing statute should not be construed to apply to architects who submit plans in the District in international architectural design competitions. According to Sturdza, "it is plain" that the consumer protection concerns underlying the licensure requirement do not apply to such competitions, because the purpose of the law is merely to protect "ordinary local DC consumers against fraudulent practices and representations by persons holding themselves out as experts."
We are not persuaded by Sturdza's argument. It is not "plain" to us that the public welfare rationale for licensing architects is inapplicable to international competitions to design build- ings such as the UAE embassy. For the safety and well-being of those who work in and visit such buildings, and of neighboring property owners, we would suppose the District has every reason to insist that the architects who design them and oversee their construction be qualified, and hence licensed, to do so.
But even if we were prepared to agree with Sturdza on these matters, her argument founders on the plain language of the statute. The licensing requirement for the practice of architecture in the District is categorical. It contains no exemption for international design competitions; indeed, it admits of no exception based on the type of client or architectural service rendered. We must apply the statute as it is written and not create ad hoc [for the particular case at hand] exceptions by judicial decree based on nebulous policy considerations. [Emphasis added.]
* * * * * * * A contract made in violation of a licensing statute that is designed to protect the public will usually be considered void and unenforceable * * *. Although the operation of this rule may appear to be harsh and disproportionate in some cases, we have uniformly rejected appeals to deviate from or mitigate it; the potential unfair applications of the rule at the margins have not persuaded us to sacrifice the benefits of a clear-cut, unmistakable requirement, with equally clear consequences for noncompliance, in this area of consumer protection. * * * One who engages in the practice of architecture in this jurisdiction without having secured the necessary District of Columbia license is barred from recovering for his or her services in an action for breach of contract. [Emphasis added.]
DECISION AND REMEDY The District of Columbia Court of Appeals held that an architect cannot recover on a contract to perform architectural services in the District of Columbia if he or she lacks a District of Columbia license. There is no exception for international design competitions.
The GLOBAL DIMENSION?The architectural services at the center of this case were to be performed for a foreign embassy. Should the court have made an exception for such a situation? Why or why not?
THE LEGAL ENVIRONMENT DIMENSION Should restrictions on the enforcement of contracts with unlicensed practitioners extend beyond the performance of professional services to include negotiations to provide the services? Discuss.