ALJDEC decisions subject to certification as final

10F-A0025-ROC · Registrar of Contractors · 2010-03-31

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 29, 2010 at 8:00 a.m. APPEARANCES: The Complainant appeared on his own behalf. The Respondent appeared through its authorized representative, Dennis Voss. 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 is the holder of a Class K-77 License issued by the Registrar of Contractors. 2. This is a residential matter where the Respondent installed a new natural gas water heater and a new expansion tank and associated piping in the complainant’s manufactured residence. 3. Shortly after the water was turned on in the residence a water supply line to the new water heater failed flooding the residence. 4. The Complainant notified the Respondent of the problem and the Respondent promptly corrected the water supply line but declined to cause any correction of the damage caused by the failed water supply line but did agree that the Complainant could submit his claim for damages to the Respondent’s insurance company. 5. The Complainant then submitted his claim to the Respondent’s insurance company. 6. When the Respondent’s insurance company declined to pay for the water damage the Complainant filed a formal complaint against the Respondent with the Registrar of Contractors. 7. Pursuant to the filing of the formal Complaint, an assigned Agency Inspector conducted an on-site inspection and on August 27, 2009 issued a written Corrective Work Order directing the Respondent to perform designated corrective work on the Complainant’s residence. 8. The Corrective Work Order provides, in pertinent part, as follows: …the following action must be taken no later than 15 calendar days from the date of this letter. FAILURE TO COMPLY MAY RESULT IN THE ISSUANCE OF A CIATION, SUSPENSION AND/OR REVOCATION OF YOUR LICENSE TOGETHER WITH CIVIL PENLITES OF UP TO $500 FOR EACH VIOLATION. A plumbing connection in the water supply line failed after the installation of the water heater. The contractor shall take necessary and proper action to remediate the damages caused by the water leak: 1. Cost to level home. 2. Cost of cleaning out the water and drying out of home. 3. Cost of repairing damage to the interior of the home; including drywall repair and painting and damage to the flooring materials. 9. There was no dispute that the Respondent failed to comply with the terms and conditions of the Corrective Work Order. 10. There was no dispute that the Complainant’s manufactured residence suffered extensive water damage as a result of the failed water supply line for the new water heater. 11. Credible testimony and evidence established that the water line failed where it was connected to the new water heater and expansion tank. 12. Credible testimony and evidence established that the Respondent is fully liable for the damages caused by the failed water supply line. 13. Notice is taken of the Respondent’s prior good License record with the Registrar of Contractors. CONCLUSIONS OF LAW 1. The credible evidence of record established violations by the Respondent of the provisions of A.R.S. § 32-1154A(23) (Failure to take appropriate corrective action) and A(3); namely, Rule R4-9-108 (Failure to perform work in a professional and workmanlike manner).

RECOMMENDed Order In view of the foregoing, it is recommended commencing on the effective date of the Registrar’s order that the Respondent’s Class K-77 License shall be suspended until the Registrar of Contractors receives and accepts written proof that the Respondent has properly complied with the terms and conditions of the written Corrective Work Order issued in this matter. It is further recommended that if the Respondent properly accomplishes the above described corrective action, on or before the effective date of this Order, then the above provided License suspension shall not take place and that this matter be closed. It is further recommended, in addition to the above-provided penalties, if any, that Respondent pay the sum of $500.00 to the Registrar of Contractors by way of a civil penalty pursuant to A.R.S. §32- 1154D. The failure by Respondent to pay the entire amount of the aforesaid civil penalty, on or before 30 days following the effective date of the Order entered in this matter, shall result in the automatic revocation of Respondent’s contractor’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent , as defined in A.R.S. §32-1101A(5), unless payment of any outstanding prior civil penalty is tendered. 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, March 31, 2010.

/s/ M. Douglas Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors -----------------------

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