ALJDEC

01F-F0236-ROC · Registrar of Contractors · 2002-02-18

STATE OF ARIZONA IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: February 12, 2002 APPEARANCES: Complainant : Richard Spector, Attorney at Law, of the firm Spector Law Offices, P.C., represented Diamond Sky Custom Homes, L.L.C. Appearing for the company were Ralph Pinto and Mark Hartman, both Managing Members. Respondent/Cross-Complainant : Eric Lively, Managing Member, appeared for Respondent A C A Custom Builders, and Counterclaimant Red Canyon Custom Builders, L.L.C. Registrar of Contractors : Mark Schweiger, Field Inspector. ADMINISTRATIVE LAW JUDGE: Gary B. Strickland _____________________________________________________________________ The hearing convened as scheduled, all parties present. Having heard the testimony of the witnesses and having read and considered the entire record, the following Findings of Fact are made, Conclusions of Law rendered, and Recommended Decision and Order issued. FINDINGS OF FACT 1. The hearing convened as scheduled on February 12, 2002 at 9:00 A.M. at the offices of the Registrar of Contractors in Flagstaff, Arizona. After several hours of testimony, the parties manifested movement in the direction of a resolution of the issues that had resulted in the Complainant having filed its complaint against A C A Custom Builders (no longer in business), and Complainant/Counterclaimant Red Canyon Custom Builders, L.L.C. having filed its claim(s). 2. The parties were, therefore, afforded the opportunity to craft a settlement agreement, the essential terms of which were read into the record and a copy of which is attached hereto as Exhibit A. For purposes of determining this matter, the obligations of the parties under the settlement agreement set forth below, if accepted by the Director of the Arizona Registrar of Contractors, are binding on each other. 3. Pursuant to the parties’ stipulation and agreement, Complainant/Counterclaimant Red Canyon Custom Builders, L.L.C. has admitted violation of A.R.S. ( 32-1154(A)(17) (contracting beyond the scope of the license) and has paid to the Registrar of Contractors the sum of $750., as and for a penalty for the violation (evinced by Exhibit B attached hereto).

4. Further, all parties hereto have agreed inter alia to 1) execute mutual releases; (2) refrain from negative or derogatory comment toward one another; and (3) maintain their stipulation and understanding in confidentiality subject to payment of damages for breach thereof. 5. Still further, Complainant Diamond Sky Custom Homes, L.L.C. and Complainant/Counterclaimant Red Canyon Custom Builders, L.L.C. have each agreed to withdraw the respective underlying complaints, identified herein as Nos. 01F-F0229-ROC and 01F-F0236-Registrar of Contractors. 6. All parties acknowledge that they enter into this stipulation and agreement voluntarily and upon a presumption of good faith. 7. The parties have agreed that all rights and defenses relating to this matter are merged into the stipulation and agreement and, should hereafter any petitions for rehearing be filed and granted, or new complaints filed, the sole issue for determination shall be whether the parties have performed their respective obligations under the terms of the stipulation and agreement executed by them at the hearing. 8. The terms of the foregoing stipulation and agreement appear reasonable under all of the circumstances and this agreement is hereby determined the product of knowing and voluntary action by each party.

CONCLUSIONS OF LAW 1. The law favors the settlement of disputes and adverse parties should be free to adjust their differences by entry into agreements and stipulations of settlement which should be recognized and given effect by the tribunal with jurisdiction over the issues and possesses statutory enforcement authority. 2. The settlement reached and crafted by the parties during the hearing of this matter and that has been submitted into the record is found to be reasonable and voluntarily made.

RECOMMENDATION IT IS RECOMMENDED that the stipulation and agreement entered into by the parties hereto be approved and that Citation No. F01-0229, together with the Complaint upon which it is based, be closed. IT IS FURTHER RECOMMENDED that the stipulation and agreement entered into by the parties hereto be approved and that Citation No. F01-0236, together with the Complaint upon which it is based, be dismissed.

Set forth this 19th day of March in the year 2002. OFFICE OF ADMINISTRATIVE HEARINGS

______________________________________ Gary B. Strickland Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2001, to:

Registrar of Contractors Michael P. Goldwater, Director Att’n: 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