ALJDEC

00F-RF0211-ROC · Registrar of Contractors · 2000-05-09

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 4, 2000, at 1:30 p.m. APPEARANCES: The Plaintiffs appeared through Laura Kirkwood. The Defendant appeared on his own behalf. ADMINISTRATIVE LAW JUDGE: M. Douglas _____________________________________________________________________

Evidence and testimony were presented and, based upon the entire record, the following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT 1. The Plaintiffs are found to be an “injured person” as defined by statute and are found to be entitled to receive payment from the Contractors’ Recovery Fund for damages sustained as a result of the Defendant’s acts or omissions. 2. The Defendant’s contracting license has been previously revoked by Order of the Registrar of Contractors. Such revocation is determined to render this Defendant unable to remedy the violations of the State’s contracting laws which gave rise to the instant claim for damages. 3. The Plaintiffs submitted one bid for the performance of needed corrective action on their residence in the sum of $90,341.22. The Defendant asserted that the one bid submitted by the Plaintiffs was inflated and submitted bids for the performance of portions of the directed corrective action that totaled a sum in excess of $14,000.00. 4. Credible testimony established that the bids submitted by the Defendant would not cause the performance of all of the directed corrective action on the Plaintiffs’ residence and that additional sums would have to be expended to complete all of the directed corrective action.. 5. The assigned agency inspector testified that bids were difficult to obtain in the geographic area where the Plaintiffs’ residence was located and that use of one complete bid was acceptable due to the geographic location of the residence. 6. The one complete bid that was submitted may, or may not, be inflated. However, even if the proposal is reduced by fifty percent it would still be in excess of $45,000.00. 7. Based upon credible evidence produced at hearing, it is found that a proper and reasonable amount payable to the Plaintiffs from the Contractors’ Recovery Fund, for the Plaintiffs’ actual damages, is the sum of $20,000.00 representing the maximum amount that can be paid from the Contractors’ Recovery Fund for the Plaintiffs’ damages which were shown to be substantially in excess of $20,000.00. CONCLUSIONS OF LAW 1. A.R.S. §32-1132(A) provides, in part, as follows: “There is established the residential contractors’ recovery fund,…, from which any person injured by an act, representation, transaction or conduct of a residential contractor, which is in violation of this chapter or the rules adopted pursuant to this chapter, may be award in the county where the violation occurred an amount of not more than twenty thousand dollars for damages sustained by the act, representation, transaction or conduct. An award from the fund is limited to the actual damages suffered by the claimant as a direct result of the residential contractor’s violation but shall not exceed an amount necessary to complete or repair a residential structure or appurtenance within residential property lines….” 2. Under the facts and circumstances of this matter, the Registrar of Contractors is empowered to determine and award proper payment to the Plaintiff from the Contractors’ Recovery Fund pursuant to A.R.S. §32- 1154(E). 3. The credible evidence of record supports an award from the Contractors’ Recovery Fund to the Plaintiffs in the sum of $20,000.00 all of which shall be appropriately chargeable against the Defendant and/or persons on the Defendant’s license as set forth in A.R.S. §32-1139(B) RECOMMENDED ORDER In view of the foregoing, it is recommended that the Registrar of Contractors shall commence and finalize payment procedures from the Contractors’ Recovery Fund to the Plaintiffs in the total amount of $20,000.00 for damages. Done this day, May 16, 2000.

________________________________ M. Douglas Administrative Law Judge

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

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

By ___________________________ -----------------------

Office of Administrative Hearings 100 N. Stone Ave., Suite 704 Tucson, Arizona 85701 (520) 628-5488