ALJDEC

02F-T0247-ROC · Registrar of Contractors · 2002-02-01

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: Thursday, January 31st, 2002; 9:00 a.m. APPEARANCES: The complainant, Naughtons Plumbing Sales Company, Inc., was represented by Mr. Ron Schelle, Vice President. The respondent, Leak Doctor, was represented telephonically by Mr. Randy Lopez, President. ADMINISTRATIVE LAW JUDGE: Grant Winston. _____________________________________________________________________

This administrative hearing was held in the Office of Administrative Hearings, Tucson. Testimony was heard, and based on the entire record, the following Findings of Fact, Conclusions of Law and Recommended Order are made. FINDINGS OF FACT 1. The respondent herein, Leak Doctor, is, and during all times material hereto was, a contractor licensed by and doing business in the State of Arizona, holding Class K-37 License number 157676. 2. The complainant, Naughtons Plumbing Sales Company, Inc., is a Tucson- based company engaged in the business of selling plumbing supplies and equipment, including to contractors such as respondent. 3. At the administrative hearing of this matter, the president of the respondent Leak Doctor, Mr. Randy Lopez, stipulated that his company did in fact owe the complainant the amount complainant is claiming in the administrative complaint, $3,139.60. Mr. Lopez further stipulated that he had no defense to the complaint. 4. In addition to the stipulations of the respondent, the testimony of Mr. Lopez and that of the vice president of the complainant, Mr. Ron Schelle, establish additional facts. 5. Complainant has received no payments from respondent since August of 2000. Complainant tried to work out a payment plan with respondent, but respondent still did not pay the complainant. Complainant does not foresee any realistic possibility that it will be paid absent some pressure being exerted from the Registrar of Contractors. 6. Notice is taken of the respondent’s prior license record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. This administrative hearing was held under authority of and pursuant to A.R.S. §32-1156, and A.R.S. §41-1092. 2. The respondent herein is charged with possible violations of A.R.S. §32- 1154.A.7., and 11. 3. A.R.S. §32-1154.A.11. prohibits a licensed contractor from failing to pay monies in excess of $750.00 when due for materials or services rendered in connection with his operations as a contractor, when he has the capacity to pay, or, if he lacks the capacity to pay, when he has received sufficient monies as payment for the particular work project or operation for which the services or materials were rendered or purchased. 4. Respondent stipulated that it owes the complainant the $3,139.60, and that it has no defense against the complaint. Respondent has violated A.R.S. §32-1154.A.11. 5. A.R.S. §32-1154.A.7. prohibits a licensed contractor from engaging in any wrongful or fraudulent act as contractor which results in another person being substantially injured. There is no evidence of any violation of this statute independent of the failure to pay the money owed the complainant which is a violation of A.R.S. §32-1154.A.11. . . . RECOMMENDED ORDER In view of the foregoing Findings of Fact and Conclusions of Law, it is hereby recommended that the respondent’s Class K-37 License number 157676 be suspended until such time as the Registrar of Contractors receives written proof that the respondent has paid the complainant $3,139.60. It is further recommended that if the registrar receives written proof that the respondent has paid the complainant $3,139.60 on or before the effective date of this order (40 days after the date of service shown by the registrar’s certification on the order) then the above-provided license suspension shall not take place, and Citation and Complaint number T02-0247, together with the complaint on which it is based, shall be closed. Done this day, February 7th, 2002.

________________________________ GRANT WINSTON Administrative Law Judge

Original transmitted by mail this ____ day of February, 2002, 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