ALJDEC decisions subject to certification as final

07F-L0192-ROC · Registrar of Contractors · 2007-09-17

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 29, 2007. APPEARANCES: Decca Multi-Family Builders, Inc. was represented by John A. Wareing. National Systems Roofing, Inc. (FN) did not appear. 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. National Roofing Systems, Inc. (FN) (“Respondent”) is the holder of License No. 179245, a Class C-42 contracting license issued by the Registrar of Contractors (“Registrar”). 2. Decca Multi-Family Builders, Inc. (“Complainant”) is the holder of License No. 160472, a contracting license issued by the Registrar. 3. On or about May 1, 2006, Complainant and Respondent entered into a written agreement for roofing work to be performed by Respondent at the Las Casas de Quartzsite apartments located at 1617 E. Quail Trail St., Quartzsite, Arizona. The contract price was $80,845.00. 4. By letter dated October 4, 2006, Complainant notified Respondent that the latter was in default under the contract due to its failure to meet time frames specified in the contract. Complainant stated that Respondent lacked adequate manpower and materials causing delays on the project. 5. By letter dated October 6, 2006, Complainant terminated the parties’ subcontact agreement. 6. Complainant filed a written complaint with the Registrar alleging statutory and regulatory violations by Respondent. 7. In response to the filed complaint, the Registrar issued a Citation and Complaint in Case No. L07-0192 alleging possible violations by Respondent of A.R.S. § 32-1154(A)(1), (7) and (3), namely R4-9-108. 8. The Registrar forwarded Case No. L07-0192 to the Office of Administrative Hearings, an independent agency, for formal hearing. 9. The Registrar issued a Notice of Hearing, which set forth the time, date and location of the formal hearing. The Notice of Hearing was mailed to the parties at their addresses of record with the Registrar. 10. The commencement of the hearing was delayed for 15 minutes to allow for the late arrival of an authorized representative for Respondent. After the delay, the Administrative Law Judge conducted the hearing in Respondent’s absence. 11. Respondent abandoned the subject project without any justification prior to being terminated by Complainant. 12. Respondent failed to perform its contractual scope of work to minimum workmanship standards. 13. Respondent’s abandonment of the project and its failure to perform its work to minimum workmanship standards are wrongful acts that substantially injured Complainant. 14. The Registrar’s official records reflect that Respondent’s contracting license was revoked on August 23, 2007 in Case Nos. S07-0068 and S07- 0067.

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), (7) and (3), namely R4-9-108, as cited in the Citation and Complaint issued by the Registrar. 4. Pursuant to A.R.S. § 32-1154(C), the revocation of Respondent’s contracting license does not deprive the Registrar of jurisdiction to impose disciplinary action in this matter.

RECOMMENDED ORDER

Respondent’s Class L-42 contracting license shall be revoked on the effective date of the Order entered in Case No. L07-0192. 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, September 17, 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