ALJDEC decisions subject to certification as final

09F-T0255-ROC · Registrar of Contractors · 2009-08-28

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 27, 2009 at 8:00 a.m. APPEARANCES: The Complainant appeared on his own behalf. The Respondent failed to appear. ADMINISTRATIVE LAW JUDGE: M. Douglas

Evidence and testimony were presented and the following Findings of Fact, Conclusions of Law and Recommended Order are made:

FINDINGS OF FACT 1. The Respondent’s Class B- License was canceled on April 23, 2009. 2. This is a residential matter where the parties entered into a construction agreement for the Respondent to construct a new custom residence for the Complainant. 3. There was no dispute that the Respondent started construction of the residence and then ran out of money and refused to continue construction until the Complainant agreed to pay additional money to the Respondent. 4. The Complainant then filed a formal Complaint against the Respondent with the Registrar of Contractors. 5. Undisputed credible testimony and evidence established that the Respondent wrongfully and fraudulently misappropriated funds from the Complainant’s construction project and utilized the over $110,000.00 for work on the Respondent’s owner’s personal residence. 6. Undisputed credible testimony and evidence established that the Respondent wrongfully and fraudulently obtained funds from the Complainant’s loan institution by falsely representing that the Respondent had paid invoices to the Respondent’s subcontractors when in fact the Respondent had not paid the subcontractors. 7. There was no dispute that as a consequence of the Respondent’s failure to pay its subcontractors the Complainant has been involved in numerous lawsuits with several of the subcontractors that worked on the Complainant’s incomplete residence. 8. Undisputed credible testimony and evidence established that the Respondent wrongfully and falsely padded its invoices that were submitted to the Complainant by charging for goods and services that were nonexistent. 9. Undisputed credible testimony and evidence established that the Respondent placed $15,000.00 with the Lewis Management Resources, Inc., for the Complainant’s fees for the Architectural Review Committee for Lot 167, Canyon Pass. There was no dispute that the said $15,000.00 belongs to the Complainant and the Complainant’s ex-wife not to the Respondent and that the money should be released to the Complainant and the Complainant’s ex-wife. 10. There was no dispute that the Respondent violated the charged provisions of A.R.S. § 32-1124 (B) and 32-1158. 11. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. The credible evidence of record established repeated violations by the Respondent of the charged provisions of A.R.S. § 32-1154 (A)(7) (Wrongful Act) and A.R.S. § 32-1124 (B) and A.R.S. § 32-1158.

RECOMMENDed order In view of the foregoing, it is recommended that the Respondent’s Class B- 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, August 27, 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 ___________________________

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