ALJDEC decisions subject to certification as final

06F-P0251-ROC · Registrar of Contractors · 2006-11-27

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

|STEVE AND NANCY LUENZ, | | No. 06F-P0251-ROC | |COMPLAINANTS, | | | |-v- | |ADMINISTRATIVE | |License No. 200626, Class B-03 | |LAW JUDGE DECISION | |Raymond Kenneth Cook and Merrill | | | |Eugene Richards AND | | | |Karl Eugene Richards dba | | | |COOK RICHARDS COMPANY (PTR), | | | |RESPONDENT. | | | | | | |

HEARING: November 13, 2006, at 9:00 a.m. APPEARANCES: The Complainants appeared through Nancy Luenz. The Respondent failed to appear. 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-03 License issued by the Registrar of Contractors. 2. On August 29, 2005, the Respondent entered into an Agreement with the Complainants to construct an addition and remodel the Complainants’ residence for the total sum of $26,000.00. 3. Pursuant to the terms of the Agreement the Complainants paid the Respondent the sum of $10,000.00 and the Respondent began work on the construction project. 4. There was no dispute that the construction project was supposed to be completed within forty five (45) days of the date of the Agreement. 5. When the construction project was not completed within the agreed upon time period the Complainants began repeatedly requesting the Respondent to properly complete the construction project. 6. When the Respondent failed to comply with the Complainants’ repeated requests, the Complainants filed a formal Complaint, against the Respondent, with the Registrar of Contractors. 7. On April 4, 2006, the Registrar of Contractors issued a letter which provides, in pertinent part, as follows: “Dear Contractor, Regarding the above-referenced complaint, it is the opinion of the office from the facts now before us that unless the matter is resolved within ten (10) calendar days from the date of this letter, we may request that citation be issued against your license so that this matter may be resolved by an administrative hearing.” 8. On April 14, 2006, the Complainants filed a letter which provides, in part, as follows: “I just want this to be on the record that the problems with the above mentioned company are still not going well! They show up around 9:00 a.m. and leave around 1:30 or 2:00 p.m. most days. This week they replaced all the WRONG juice hangers and installed new units (much larger). Today they were supposed to install some of the framing I was told. There is no flooring even down yet and they were installing some of the plumbing that we were told was to be contracted out to a licensed contractor. I feel at this time that I need to have an Administrative hearing…” 9. The record in this matter establishes that the Registrar of Contractors mailed a Notice of Hearing to the Respondent on September 29, 2006. 10. The Notice of Hearing is found to have given notice to the Respondent of the date, time and location of the scheduled hearing and to comply with all applicable statutory requirements. 11. Credible testimony and evidence, presented at hearing, established the Respondent abandoned the Complainants’ construction project leaving it in an unfinished and unprotected condition. 12. There was no dispute that the Respondent performed plumbing work on the Complainants’ residence. 13. There was no dispute that the performance of plumbing work by the Respondent beyond the scope of the Respondent’s Class B-03 License. 14. Credible testimony and evidence, presented at hearing, established the construction work completed by the Respondent was of very poor quality and it failed to comply with applicable industry and workmanship standards. 15. There was no dispute that inclimate weather has damaged much of the work completed by the Respondent and the Complainants have received little, if any, benefit from the construction work completed by the Respondent. 16. The Respondent’s actions, in failing to complete an agreed upon construction project, abandoning the construction project leaving it in an uncompleted and unprotected conditions, and performing plumbing work beyond the scope of its license, are found to constitute a wrongful act. 17. 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) (1) (Abandonment of a contract), (7) (Wrongful Act), (17) (Knowingly contracting beyond the scope of the license of the licensee) and (3); namely, Rule R4-9-108 (Failure to perform work in a professional and workmanlike manner).

RECOMMENDED orDER In view of the foregoing, it is recommended the Respondent’s Class B- License be revoked. In the event of certification of this Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the order will be 40 days from the date of the certification. Done this day, November 20, 2006.

______________________________________ M. Douglas Administrative Law Judge

Original transmitted by mail this ____ Day of ____________, 2006, to:

Registrar of Contractors Fidelis V. Garcia Legal Department 800 West Washington, 6th Floor Phoenix, AZ 85007

By ___________________________

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Office of Administrative Hearings 100 North Stone Avenue, Suite 704 Tucson, Arizona 85701 (520) 628-5488