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Edelman Combs Latturner & Goodwin, LLC Edelman Combs Latturner & Goodwin, LLC
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Question: Am I obligated to pay for services rendered if I found out the security company I hired is not licensed? I hired a security company and they provided an adequate service. I later found out that they were not properly licensed.

Answer: Under Illinois law, a party that violates a licensing requirement that is applicable to the transaction and is imposed to protect the public against unqualified persons cannot sue for compensation. On the other hand, requirements that are primarily means of raising revenue do not have this consequence. If the licensing requirement is that administered by the Department of Financial and Professional Regulation, you may have a defense. If it is a license to conduct business issued by the Secretary of State, it is probably not a defense if the company has a charter in good standing or authority as a foreign corporation by the time suit is filed (the company is barred from suing if it was required to have a charter or authorization as a foreign corporation and does not, but this is curable; the other sort of problem is not). Whether the licensing requirement applies and is imposed to protect the public against unqualified persons can be a difficult question. Contact us if you need advice in the area.

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