ALJDEC decisions subject to certification as final

07F-L0239-ROC · Registrar of Contractors · 2007-07-11

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 25, 2007. APPEARANCES: Louie Gonzales appeared personally. John W. Paulson Custom Builders, Inc. was represented by its attorney, Dana R. Stoker, Esq. 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. John W. Paulson Custom Builders, Inc. (“Respondent”) is the holder of License No. 197770, a Class B- contracting license, issued by the Registrar of Contractors (“Registrar”). 2. On or about May 31, 2006, Respondent entered into a contract with Louie Gonzales (“Complainant”) for the construction of a casita and RV garage at his residence in Lake Havasu City, Arizona. The total contract price was $181,264.00. 3. On or about May 31, 2006, Complainant paid Respondent an initial payment of $27,000.00. 4. On or about November 8, 2006, Respondent sent Complainant Invoice No. 562 in the amount of $23,000.00 for the casita. Complainant paid that invoice by check dated November 10, 2006. 5. Shortly after making the second payment to Respondent, Complainant discovered that Respondent was out of business. Complainant was unable to contact Respondent. Respondent did not return to the jobsite. 6. On or about November 16, 2006, Complainant filed a written complaint with the Registrar alleging statutory violations by Respondent. 7. The only work performed by Respondent was the installation of a concrete foundation. However, that work was not to specifications. 8. On or about March 30, 2007, Complainant caused electrical power to be brought to the casita slab at a cost of $2,044.26. That work was within Respondent’s scope of work. The electrician was paid by a check from a checking account for Kiowa Drive Thru. 9. On or about April 11, 2007, Complainant paid for termite pretreatment, which was within Respondent’s scope of work. The termite pretreatment cost $284.97. 10. On or about May 1, 2007, Complainant paid for the underground plumbing payment of $2,646.25 to bring plumbing to the casita. That work was within Respondent’s scope of work. The plumber was paid by a check from a checking account for Kiowa Drive Thru. 11. On or about May 2, 2007, Complainant paid the concrete subcontractor the sum of $10,203.00 for concrete work, which was within Respondent’s scope of work. The payment was made by a check from a checking account for Kiowa Drive Thru. 12. On or about May 11, 2007, Complainant paid for leveling and cleanup around the casita. The payment of $441.43 was made by a check from a checking account for Kiowa Drive Thru. 13. On or about June 1, 2007, McDonald Construction recommended that the slab and underground work performed by Respondent or its subcontractors be removed and replaced. 14. Respondent is found to have abandoned Complainant’s project without legal justification. 15. Respondent failed to construct the concrete pad per specifications. 16. Respondent failed to complete the project for the contract amount. 17. Respondent’s abandonment of the project, its failure to construct the concrete pad per specifications and its failure to complete the project for the agreed upon contract price are wrongful acts that substantially injured Complainant. 18. A review of the official records of the Registrar of Contractors reveals that Respondent’s Class B- contracting license was revoked on May 17, 2007. As a result of the revocation, Respondent cannot perform any licensed contracting. Those records reflect that Respondent’s Class B- license has 17 open complaints, one disciplined complaint and three resolved/settled/withdrawn complaints.

CONCLUSIONS OF LAW

1. The Registrar of Contractors 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 of Contractors. 4. Respondent violated the provisions of A.R.S. § 32-1154(A)(2), as cited in the Citation and Complaint issued by the Registrar of Contractors. 5. Respondent violated the provisions of A.R.S. § 32-1154(A)(7), as cited in the Citation and Complaint issued by the Registrar of Contractors. 6. Respondent violated the provisions of A.R.S. § 32-1154(A)(9), as cited in the Citation and Complaint issued by the Registrar of Contractors. 7. Pursuant to A.R.S. § 32-1154(C), the revocation of Respondent’s Class B- contracting license does not deprive the Registrar of Contractors with the authority to impose disciplinary action against that license for the above-described statutory violations.

RECOMMENDED ORDER

Respondent’s License No. 197770 shall be revoked in Case No. L07-0239 on the effective date of the Order entered in that matter. 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, July 11, 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 ___________________________ -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826