ALJDEC

00F-F0249-ROC · Registrar of Contractors · 2000-12-11

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: December 4, 2000, 1:30 p.m. APPEARANCES: COMPLAINANT: by David Burger, president and authorized representative. RESPONDENT: Don Grosvenor, sole proprietor.

ADMINISTRATIVE LAW JUDGE: Anthony Halas _____________________________________________________________________ Hearing in this matter was convened to determine whether Respondent violated state law as alleged by Complainant and as cited by the Registrar of Contractors (Registrar). Based on stipulation of the parties made prior to the presentation of evidence and testimony, and based on the entire record, these Findings of Fact, Conclusions of Law, and Recommended Decision are made:

FINDINGS OF FACT 1. Respondent Donald Grosvenor (Grosvenor) is a sole proprietor holding Arizona Contractor’s License No. 121470, Class B, dba Grosvenor Homes. 2. Complainant Arizona Home Centers is a corporate subsidiary selling, among other items, household appliances on a wholesale basis to the construction trades. David Burger (Burger) is president and authorized representative for purposes of this proceeding. 3. In late 1998, Grosvenor contracted with Arizona Home Centers for the purchase of certain household appliances which were then installed in a residence his company was building (the Kelly residence). 4. The total contract price was $7853.00. By late 1999, Grosvenor had paid $3000.00, leaving a balance due of $4853.00. 5. On January 28, 2000, Arizona Home Centers filed a complaint with the Registrar of Contractors (Registrar) alleging that Grosvenor still owed the balance due of $4853.00. 6. When the matter was not administratively resolved, the Registrar issued CITATION AND COMPLAINT in Case No. F00-0249 to Respondent, charging the licensee with possible violations of A.R.S. § 32-1154.A.7 and A.11. 7. In his timely written answer to the CITATION AND COMPLAINT, Grosvenor admitted he owed Arizona Home Centers $4853.00, and asserted all monies owed would be repaid. 8. At hearing, in an effort to resolve the matter with certainty, and in an expeditious manner, Burger and Grosvenor stipulated that the undersigned should recommend to the Registrar of Contractors that: A. Grosvenor have through close of business (5:00 p.m.) on Friday, February 2, 2001 to tender payment in full of the balance due of $4853.00 to Arizona Home Centers by means of certified funds, cashier’s check, or cash. B. If payment in full was not received by Arizona Home Centers by that time and date, then Grosvenor’s Contracting License No. 121470, Class B, would be revoked immediately by the Registrar of Contractors, effective February 3, 2001.

APPLICABLE LAW A.R.S. § 32-1154.A provides, in pertinent part, as follows: A. The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions: . . . . . 7. The doing of a wrongful or fraudulent act by the licensee as a contractor resulting in another person being substantially injured. . . . . .

11. Failure by a licensee or agent or official of a licensee to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee's operations as a contractor when the licensee has the capacity to pay or, if the licensee lacks the capacity to pay, when the licensee has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

CONCLUSIONS OF LAW 1. The Registrar of Contractors has jurisdiction over this matter, pursuant to A.R.S. § 32-1101, et. seq., which authorizes the Registrar to impose disciplinary sanctions against licenses for violations of A.R.S. § 32-1154. 2. In his written answer to the CITATION AND COMPLAINT in this case, Respondent Grosvenor has admitted his failure to pay Complainant Arizona Home Centers $4853.00 when due for materials or services rendered in connection with his operations as a licensed contractor, in violation of A.R.S. § 32-1154.A.11. 3. By stipulation of the parties, Complainant has agreed to allow Respondent through close of business on February 2, 2001 to tender $4853.00 as payment in full, by means of certified funds, cashier’s check, or cash. Respondent has agreed that if such payment in full is not tendered by that time and date, his Contracting License No. 121470, Class B, shall be revoked immediately by the Registrar of Contractors.

RECOMMENDED DECISION On the basis of the foregoing, IT IS RECOMMENDED that the Registrar of Contractors revoke Respondent’s License No. 121470, Class B, effective February 3, 2001. IT IS FURTHER RECOMMENDED that, if on or before February 3, 2001, written proof is provided the Registrar of Contractors that Respondent has tendered $4853.00 to Complainant in restitution for its violation of the contracting laws, no license revocation shall take place. Done this day, December 11, 2000.

______________________________________ Anthony Halas Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2000, to:

Registrar of Contractors Michael P. Goldwater Attn: Joyce Armijo 800 West Washington, 6th Floor Phoenix, AZ 85007

By ___________________________

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Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826