ALJDEC

01F-H0215-ROC · Registrar of Contractors · 2001-09-04

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 22, 2001; at 1:30 p.m. APPEARANCES: The Complainant appeared through its authorized representative, Joseph Sanfilippo. The Respondent appeared through its authorized representative, Bill Robertson. 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. Respondent is the holder of a Class B- License issued by the Registrar of Contractors. 2. The Complainant is a construction materials suppler which has supplied windows, hardware and doors to the Respondent. The Complainant asserts that the Respondent owes it the sum of $17,120.07, representing the sum of $15,408.13 for the construction materials and the sum of $1,711.94 in interest on the unpaid debt. 3. There was no dispute that the Respondent utilized the materials supplied by the Complainant in the construction of several different residences. 4. The Complainant was dissatisfied with the Respondent’s failure to pay for the furnished construction materials despite repeated demands that it do so. The Complainant then filed a formal complaint, against the Respondent, with the Registrar of Contractors. 5. Pursuant to the filing of the formal complaint, the matter was set for formal hearing. 6. The Respondent admitted that it had received and utilized the construction materials furnished by the Complainant but asserted that it disputed the Complainant’s interest charges and asserted that it claimed an offset for some door hardware that was not utilized by the Respondent. 7. Credible testimony and evidence established that the Respondent’s claim for an offset for the disputed door hardware is without credible foundation and that the Respondent owes the sum of $15,408.13, without interest, to the Complainant for construction materials furnished to, and utilized by, the Respondent. 8. The Respondent’s dispute, regarding the amount of interest owed to the Complainant, is found to constitute a good faith dispute regarding the amount of interest owed and which will necessarily involve a monetary adjudication and which should be resolved, if at all, in a civil court of competent jurisdiction. 9. The Respondent’s failure to pay the remaining $15,408.13 due to the Complainant for construction materials furnished to, and utilized by the Respondent, is found to constitute a violation of the charged provisions of A.R.S. §32-1154(A)(11). 10. The Respondent’s actions, in utilizing construction materials furnished to it by the Complainant and in failing to pay for the furnished construction materials based upon a dispute regarding the amount of interest accrued by the Respondent’s failure to pay for construction materials, are found to constitute a wrongful act. 11. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. The credible evidence of record established violations by the Respondent of the provisions of A.R.S. (32-1154 (A) (7) (Wrongful Act) and (11). . . . . . . RECOMMENDED ORDER In view of the foregoing, it is recommended that the Respondent’s Class B- License shall be revoked unless the Registrar of Contractors receives proof that the Respondent has properly paid the sum of $15,408.13 to the Complainant. It is further recommended that if the Respondent properly accomplishes the above described, on or before the effective date of this Order, then the above provided License revocation shall not take place and Citation No. H01-0215 shall be closed. Done this day, September 7, 2001.

________________________________ M. Douglas Administrative Law Judge

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

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

By _______________________________

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