ALJDEC decisions subject to certification as final

08F-T0925-ROC · Registrar of Contractors · 2009-05-19

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 11, 2009 at 9:00 a.m. APPEARANCES: The Complainant appeared on his own behalf. The Respondent failed to appear. ADMINISTRATIVE LAW JUDGE: M. Douglas

The following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT 1. The Respondent is the holder of a Class KB-01 License issued by the Registrar of Contractors. 2. This is a residential matter where the parties entered into a construction agreement for the Respondent to construct a new residence for the Complainant. 3. There was no dispute that pursuant to the terms of the parties’ purchase contract the Complainant provided the Respondent with $15,000.00 in earnest money. 4. When the Respondent’s affiliated lender informed the Complainant that a mortgage in the amount of the parties’ contract could not be provided, the Complainant demanded the return of his earnest money and the cancellation of the parties’ contract. 5. When the Respondent refused to return his $15,000.00 in earnest money and refused to cancel the contract, the Complainant filed a formal Complaint against the Respondent with the Registrar of Contractors. 6. Undisputed credible testimony and evidence established that the Complainant was unable to qualify for the loan for the purchase of the home at issue and that the Complainant is fully entitled to the return of his $15,000.00 in earnest money. 7. The Respondent’s actions in refusing to cancel the parties’ contract and in refusing to return the Complainant’s earnest money to the Complainant despite the Complainant’s repeated demands that it do so are found to constitute a wrongful act. 8. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. Undisputed credible testimony and evidence established violations by the Respondent of the provisions of A.R.S. § 32-1154 (A) (7) (Wrongful Act). RECOMMENDed order In view of the foregoing, it is recommended that the Respondent’s Class KB-01 License be revoked. 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, May 11, 2009.

______________________________________ M. Douglas Administrative Law Judge

Original transmitted by mail this ____ Day of ____________, 2009, to:

William A. Mundell, Director Registrar of Contractors c/o Legal Department 3838 N. Central Ave. Phoenix, AZ 85012

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

Office of Administrative Hearings 100 N. Stone Avenue, Suite 704 Tucson, AZ 85701 (520) 628-5488 Fax: (520) 628-5575 www.azoah.com