ALJDEC decisions subject to certification as final

09F-R0025-ROC · Registrar of Contractors · 2009-11-24

STATE OF ARIZONA OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 5, 2009

APPEARANCES: Complainant Arizona Registrar of Contractors was represented by Assistant Attorney General Keely Verstegen, accompanied by sole witness Valerie Hicks, ROC Legal Assistant; Respondents were represented by their sole witness Craig Kakavas, sole proprietor of Show Low Drywall and Member and Qualifying Party for Show Low Custom Homes.

ADMINISTRATIVE LAW JUDGE: Eric A. Bryant _____________________________________________________________________

Complainant brings this action claiming that Craig Alan Kakavas is named on another license that has been revoked. Respondent denies the charges, claiming that his name was forged on the license that has been revoked. This tribunal entered the complaint file received from the Registrar of Contractors into the record, along with Complainant’s Exhibits 1 through 8. The parties presented evidence and testimony at the hearing. Based upon the entire record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law, and Decision finding that Craig Kakavas is named on another license that has been revoked and recommending revocation of the two licenses named above.

FINDINGS OF FACT 1. Respondent Craig Alan Kakavas dba Show Low Drywall is the holder of a class K-10 dual commercial and residential contracting license (No. 156924) issued by the Registrar of Contractors (“ROC”). That license authorizes Respondent Kakavas to perform drywall work for commercial and residential projects. Craig Kakavas is the sole proprietor and Qualifying Party. The license was issued in 2000. 1. Respondent Show Low Custom Homes, LLC is the holder of a class B- general residential contracting license (No. 223401) issued by the ROC. That license authorizes Respondent Show Low Custom Homes to perform general residential construction of a structure or appurtenance, except for certain specialty contracting such as electrical, plumbing, swimming pools, etc. Craig Kakavas is Respondent Show Low Custom Homes’ Managing Member and Qualifying Party.[1] The license was issued in 2006. 3. In January 2007, a license was issued by the ROC to JSC Builders, LLC dba Desert View Construction (No. 228171). This was a class B- license, and its Qualifying Party was listed as Craig Kakavas. 4. In multiple cases in 2008 and 2009,[2] the ROC revoked the license of JSC Builders, LLC for failure to comply with final orders from the ROC. 5. Respondents did not challenge the facts stated above. Instead, Respondents argued that Craig Kakavas was not the Qualifying Party for the license held by JSC Builders and that his signature, which appears in several places on the license application for JSC Builders, was forged. 6. Craig Kakavas testified that he had no knowledge of the JSC Builders license until March 2009 when he received the Citation and Complaint in this matter. He acknowledged that Cliff Reidhead, another person named on the JSC Builders license, was an employee of his from 2003 through 2006. He did not call Reidhead, or anyone else, to testify about JSC Builders. 7. Craig Kakavas testified that he signed the applications for licensure in Exhibits 1 and 2. He testified that he did not sign the application for licensure in Exhibit 3, the application for JSC Builders. 8. Upon examination and comparison of Exhibits 1 and 2 with Exhibit by the Administrative Law Judge, the signatures are very similar. Without the help of a handwriting expert, this tribunal cannot find that the signature on Exhibit 3 is not the same as those on Exhibits 1 and 2. Respondents did not present such expert evidence to support the claim that the signature on Exhibit 3 was forged. 9. The evidence is not sufficient to support Respondents claim that Craig Kakavas was not named on the license for JSC Builders (No. 228171), a license that was revoked. 10. Craig Kakavas is named on a license that was revoked. CONCLUSIONS OF LAW 1. The burden of proof at an administrative hearing is generally upon a complainant.[3] Further, the standard of proof at hearing is by preponderance of the evidence.[4] Therefore, Complainant bears the burden of showing, by a preponderance of the evidence, that Respondents have violated the statutes cited in the Citation and Complaint.[5] Complainant has met that burden. 2. The evidence shows that Craig Kakavas, sole proprietor of Show Low Drywall and sole member and Qualifying Party of Show Low Custom Homes, LLC is named on license 228171 held by JSC Builders, LLC, a license that has been revoked, as cited in the Citation and Complaint. This is a violation of A.R.S. § 32-1154(A)(21). 3. Respondents’ licenses should be revoked.

. . .

RECOMMENDED ORDER IT IS RECOMMENDED that Class K-10 license 156924 held by Craig Alan Kakavas dba Show Low Drywall be revoked. IT IS FURTHER RECOMMENDED that Class B- license 223401 held by Show Low Custom Homes, LLC be revoked.

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 24th day of November 2009.

Office of Administrative Hearings

/s/ Eric A. Bryant Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors

----------------------- [1] Hereinafter, “Respondents” will refer to the sole proprietorship, the company, and Craig Kakavas. [2] Exhibits 4 through 8. [3] Utah Construction Company v. Berg et al, 68 Ariz. 285, 205 P.2d 367 (1949). [4] Smith v. Arizona Dept. of Transportation, 146 Ariz. 430, 706 P.2d 756 (App. 1985). [5] Culpepper v. State, 187 Ariz. 431, 437, 930 P.2d 508, 514 (Ct. App. 1996).

-----------------------

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