ALJDEC decisions subject to certification as final

07F-H0226-ROC · Registrar of Contractors · 2007-10-23

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: October 4, 2007. APPEARANCES: Dikka Rian appeared personally. Signet Properties, Inc., doing business as Signet Development, was represented by its authorized employee, Bryan Hood. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ Based upon the evidence of record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law and Recommended Order:

FINDINGS OF FACT

1. Signet Properties, Inc., doing business as Signet Development (“Respondent”), is the holder of License No. 204825, a Class B- contracting license, issued by the Registrar of Contractors (“Registrar”). 2. On or about October 7, 2005, Respondent and Dikka Rian (“Complainant”) entered into a written agreement for a remodeling project at Complainant’s rental house located in Golden Valley, Arizona. 3. On or about November 21, 2006, Complainant filed a written complaint with the Registrar alleging statutory and regulatory violations by Respondent. Complainant’s complaint listed the following items:

1. Dirt work. Note 25% erosion of path over wash. 2. Exterior Doors. Unfinished, surrounding walls cracked, threshold not installed. 3. At least one new vertical wall not plumb. 4. Ceiling seams clearly visible in new bath. 5. Outlet openings in drywall too large. 6. Failure to properly cover surfaces before doing messy work, and failure to clean up resulting messes. All Glass surfaces and many painted walls. 7. Failure to properly slope north balcony. Use of substandard materials. Failure to complete work. 8. Failure to finish all stucco work. 9. Failure to complete installation of south facing windows. 10. Failure to seal roof when work required work on roof resulting in leaks. 11. Failure to seal west facing door in a new bedroom resulting in massive leaks. 12. Failure to obtain permits. 13. Use of substandard materials and very poor construction of east facing porch. Failure to finish work. 14. Failure to actually level cement floors. Use of poor substandard materials, or improper use of materials requiring removal of said materials by Mr. Doug Nusbaum. 15. Use of substandard materials and substantial work in installation of upstairs bedroom door and frame. Failure to complete work. 16. Use of substandard materials and substandard work in south stairs from first to second floor. Failure to complete work. 17. Failure to finish Mechanical room, and poor construction so that door “sticks.” 18. Failure to finish installation of fixtures on hot tub in new bathroom. 19. Wiring for ceiling fan in new south room substandard.

4. In response to the filed complaint, the Registrar’s assigned inspector, Bill Redman, performed a jobsite inspection to view Respondent’s workmanship. That inspection resulted in Inspector Redman issuing a Corrective Work Order dated December 22, 2006, which identified the following items requiring timely repair and those items not requiring corrective action:

Complete all work that was contracted by the complainant; including but not limited to stucco, windows, doors, etc. All items on the complainant’s list must be corrective in a good and workmanlike manner.

The following items do not require correction as follows: 1. the dirt work is within standards. 4. the ceiling seams in the new bath are within standards. 12. the permits must be obtained by the owner. 14. the floor leveling is must [sic] as the owner accepted it when they installed tile and other floor coverings. 16. and 18. finished by owner or others. 19. must be completed by a licensed electrical contractor.

5. Respondent failed to substantially and timely comply with the Corrective Work Order. 6. By letter dated June 18, 2007, the Mohave County Planning and Zoning Department advised Complainant that a building inspection revealed that her rental property’s remodeling project “does not meet the required 2003 International Building and 2002 National Electrical codes for safety standards.” Complainant was further advised that the following items must be corrected in order to bring the property up to code:

1) Label all breakers in sub panel. 2) Install smoke detectors at approved sites. 3) Two windows at the north loft are required to be tempered glass or a protective bar installed on the accessible side(s) of the glazing 36” plus or minus 2” above the floor. The bar should be capable of withstanding a horizontal load of 50 lb per linear foot without contacting the glass and be a minimum of 1 ½” in height. 4) Standpipe receptor for laundry must be minimum 18” or maximum 42” above trap. 5) Pop off water heater drain must be either CPVC or Copper it cannot be PVC. 6) Cap off unused drain outside of kitchen wall. 7) All outside receptacles must be G.F.C.I. protected. 8) Disconnects for A.C. units not to exceed manufacturers [sic] requirements.

7. The Registrar issued a Citation and Complaint in Case No. H07-0226 alleging possible violations by Respondent of A.R.S. § 32-1154(A)(1), (2), (9), (23) and (3), namely A.A.C. R4-9-108. The Registrar then referred the case to the Office of Administrative Hearings, an independent agency, for formal hearing. 8. There is credible evidence that Respondent halted work on Complainant’s project in mid-2006. 9. In 2006 Respondent experienced financial difficulties. Respondent used funds paid by Complainant for other projects, which caused Complainant’s project to be under funded. 10. Respondent does not presently have the funds to complete Complainant’s project, but expects to earn profits on other projects to fund the completion of Complainant’s project. 11. Respondent is found to have abandoned Complainant’s project. Respondent failed to complete the project for the contracted price. 12. At the hearing Inspector Redman credibly testified that Respondent is the worse contractor he has seen. 13. Respondent’s acts and/or omissions on Complainant’s project are wrongful acts which have substantially injured Complainant.

CONCLUSIONS OF LAW

1. The Registrar has jurisdiction over Respondent and the subject matter in this case. 2. Pursuant to A.A.C. R2-19-119(B), Complainant has the burden of proof in this matter. The standard of proof is preponderance of the evidence. A.A.C. R2-19-119(A). 3. Respondent violated the provisions of A.R.S. § 32-1154(A)(1), as cited in the Citation and Complaint issued by the Registrar. 4. Respondent violated the provisions of A.R.S. § 32-1154(A)(2), as cited in the Citation and Complaint issued by the Registrar. 5. Respondent violated the provisions of A.R.S. § 32-1154(A)(7), as cited in the Citation and Complaint issued by the Registrar. 6. Respondent violated the provisions of A.R.S. § 32-1154(A)(9), as cited in the Citation and Complaint issued by the Registrar. 7. Respondent violated the provisions of A.R.S. § 32-1154(A)(23), as cited in the Citation and Complaint issued by the Registrar. 8. Respondent violated the provisions of A.R.S. § 32-1154(A)(3), specifically A.A.C. R4-9-108, as cited in the Citation and Complaint issued by the Registrar. 9. The evidence of record supports the revocation of Respondent’s contracting license, pursuant to A.R.S. § 32-1154(B), for the above proven statutory and regulatory violations in order to protect the public health, safety and welfare.

RECOMMENDED ORDER

Respondent’s License No. 204825 shall be revoked on the effective date of the Order entered in Case No. H07-0226. In the event of certification of the 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 that certification.

Done this day, October 23, 2007

______________________________________ Brian Brendan Tully Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2007, to:

Fidelis V. Garcia, Director Registrar of Contractors Legal Department 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