ALJDEC decisions subject to certification as final

07F-T1196-ROC · Registrar of Contractors · 2008-01-29

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: January 23rd, 2008; 1:30 p.m. APPEARANCES: Complainant, Banker Insulation, Inc., was represented by Mr. Sterling Rahn, Credit Manager. Respondents, Harvest Development, LLC, doing business as Grand Banks Homes, Ltd., and Harvest Builders of Tucson, doing business as Harvest Builders, failed to appear. ADMINISTRATIVE LAW JUDGE: Grant Winston _____________________________________________________________________ The administrative hearing in this matter was held in the Office of Administrative Hearings, Tucson. Testimony was heard and other evidence admitted to the record and, based on the entire record, the following Findings of Fact, Conclusions of Law and Recommended Order are made. FINDINGS OF FACT 1. Respondent, Harvest Development, LLC, doing business as Grand Banks Homes Ltd., is, and during all time material hereto was, a contractor licensed by and doing business in the State of Arizona, holding Class B License number 195396. 2. Respondent, Harvest Builders of Tucson, Inc., doing business as Harvest Builders, is, and during all time material hereto was, a contractor licensed by and doing business in the State of Arizona, holding Class B License number 102205. 3. Complainant, Banker Insulation, Inc., entered into various contracts with Respondents during the time period from June, through August, 2006, for insulation work at a number of tract homes in Tucson, and Marana, Arizona. Respondent had applied for and Complainant had given credit to Respondents to pay within 30 days. 4. Respondent failed to pay these accounts within 30 days, and Complainant patiently waited a longer period of time, trying to work with Respondents who claimed to be having trouble paying, and promising to do so. 5. Eventually it became obvious to Complainant that Respondents were not going to pay unless measures were taken, so Complainant filed against Respondents in the Arizona Registrar of Contractors on or about June 6th, 2007, seeking an Order from the Registrar directing Respondents to pay the accounts. 6. Citation and Complaint issued from the Registrar of Contractors. Respondents filed a Written Answer. No payments having been made, Complainant requested an administrative hearing, which was scheduled, noticed and held. Complainant appeared at the hearing, but Respondents failed to appear. 7. At the hearing credible testimony from Complainant’s Credit Manager, Mr. Sterling Rahn, and relevant documentary evidence proved that Respondents owe Complainant $20,506.40 on the delinquent accounts. 8. Notice is taken of Respondents’ prior license records with the Arizona Registrar of Contractors. Respondent Class B License number 195396 is current; however, Class B License number 102205 is suspended. 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. Respondents are charged in the instant Citation and Complaint with possible violations of A.R.S. 32-1154.A.7, and 11. 3. The greater weight of evidence proved that Respondents have failed to pay these several delinquent accounts, and there is no evidence of any defense for the failure. This constitutes a violation of A.R.S. 32-1154.A.11. 4. There is no evidence of any wrongful or fraudulent action in this case on Respondents’ part independent of the violation of A.R.S. 32-1154.A.11, which would constitute a violation of A.R.S. 32- 1154.A.7. RECOMMENDED ORDER In view of the foregoing Findings of Fact and Conclusions of Law it is hereby recommended that Respondents’ Class B License number 195396, and Class B License number 102205, be revoked on the effective date of this Order. It is further recommended that in the event the Registrar of Contractors receives written proof that Respondents have paid Complainant the outstanding $20,506.40, on or before the effective date of this Order (40 days after the date of service appearing on the Registrar’s certification on the Order), then the above-provided license revocations shall not occur and Citation and Complaints T07-1196, and T07-1196(W) shall be closed. In the event of certification of the Administrative Law Judge’s Decision and Order by the Director of the Office of Administrative Hearings, then the effective date of the Order shall be 40 days after the date of that certification. Done this day, January 28th, 2008.

______________________________________ Grant Winston Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2008, to:

Registrar of Contractors Fidelis V. Garcia 3838 N. Central Ave., Ste. 400 Phoenix, AZ 85012-1906

By ___________________________

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