ALJDEC decisions subject to certification as final

08F-R089023-BFS · Department of Fire Building and Life Safety · 2008-12-01

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 12, 2008 APPEARANCES: Phillip Camp appeared and was represented by attorney James O. Bell; no one appeared for Respondent ADMINISTRATIVE LAW JUDGE: Thomas Shedden _____________________________________________________________________ Complainant filed a request for payment from the Consumer Recovery Fund. 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 House Mart Factory Outlet, LLC was a licensed retailer of manufactured homes in the State of Arizona, holding a Class D-8 License, No. 7731. Respondent’s license was revoked on August 12, 2008. 2. On or about December 23, 2007, Complainant, Philip D. Camp, purchased a manufactured home from Respondent. Mr. Camp agreed to pay Respondent $129,869 and has paid Respondent $125,869.

3. The home was delivered in March 2008, but Mr. Camp has not received title to the home. Mr. Camp contacted the Department of Fire, Building and Life Safety which recommended that he file a Consumer Recovery Fund Claim. 4. On September 2, 2008, Mr. Camp filed a Complainant and a Consumer Recovery Fund Claim Form with the Department in which he requested $93,940.00. 5. After an inspection conducted on September 17, 2008, the Department verified Mr. Camp’s Complaint finding that Respondent had received all but $5,000.00 of the purchase price, but that Respondent had not deposited this money in its escrow account. The Department also determined that there was a lien against Mr. Camp for $1,430.00 for work ordered by Respondent and that Respondent had not paid Textron Financial Corporation, the lender flooring the home, $92,5100.00, which would be required to be paid in order for Mr. Camp to receive the Manufacturer’s Statement of Origin needed to title the home. See Complaint Review, in administrative record. 6. On October 3, 2008, the Department issued a Notice of Hearing setting the matter for 1:30 p.m. November 12, 2008. No one appeared for Respondent and, after a 15 minute grace period the hearing was convened in Respondent’s absence. CONCLUSIONS OF LAW This administrative hearing was held under authority of and pursuant to A.R.S. §§ 41-1092 and 41-2190(C). The buyer of a manufactured home may file a claim with the Consumer Recovery Fund for damage incurred by failure of a dealer to perform a sales agreement and may recover the amount found by the Administrative Law Judge to be payable. See A.R.S. § 41-2190(B). “Recovery from the consumer recovery fund is limited to actual or compensatory damages, including costs but excluding interest or attorney fees.” A.R.S. § 41-2188(B). A decision granting a claim shall include an order suspending the license of the account against whom the claim was filed. The license shall remain on suspension until the licensee has repaid in full, plus 10% interest per year, all of the amount paid on its account from the fund. A.R.S. § 41- 2190(D). The Consumer Recovery Fund has a claim against the licensee for all costs, necessary expenses and reasonable attorney fees incurred by it on the licensee’s account. A.R.S. § 41-2190(G). The preponderance of evidence shows that Mr. Camp suffered actual damages of $93,940.00 that are compensable from the Consumer Recovery Fund. ORDER IT IS ORDERED that the Department of Fire, Building and Life Safety, Office of Manufactured Housing, commence and finalize payment to Complainants from the Consumer Recovery Fund in the amount of $93,940.00; and IT IS FURTHER ORDERED that Respondent’s Class D-8 License, No. 7731, be suspended until the licensee has repaid in full, plus interest at the rate of ten per cent per year, the amount paid from the Consumer Recovery Fund on the licensee’s account. Done this day, December 1, 2008

______________________________________ Thomas Shedden Administrative Law Judge

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

Robert Barger, Director Department of Building and Fire Safety ATTN: Debra Blake 1110 West Washington Avenue, Suite 100 Phoenix, Arizona 85007

By ___________________________ -----------------------

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