ALJDEC decisions subject to certification as final

12F-DI-186-REL · Department of Real Estate · 2013-04-03

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 14, 2013 APPEARANCES: The Arizona Department of Real Estate was represented by Assistant Attorney General Shelby Cuevas. Respondents Susie Lockhart and Rent-A-Home did not appear. ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer _____________________________________________________________________ FINDINGS OF FACT 1. On December 9, 2011, the Arizona Department of Real Estate (Department) issued a Cease and Desist Order and Notice of Right to Request Hearing to Respondent Susie Lockhart and Respondent Rent-A-Home (collectively Respondents). Respondents did not appeal the Department’s Cease and Desist Order. 2. On December 17, 2012, the Department issued a Notice of Hearing and Complaint regarding this matter (Notice of Hearing) setting an administrative hearing to be held with the Office of Administrative Hearings on March 14, 2013, at 8:00 a.m. On the date of the hearing, the Administrative Law Judge convened the hearing at 8:25 a.m., which provided additional time for Respondents to appear. After expiration of the additional time, Respondents failed to appear and the hearing proceeded. 3. The Notice of Hearing contained allegations regarding the conduct of Respondents that the Department contended violated the Arizona real estate laws. Through the administrative hearing process, the Department sought to affirm the Order of Cease and Desist, revoke Respondent Lockhart’s real estate broker’s license, revoke the entity license held by Rent-A-Home, and to impose a civil penalty of not more than $1000.00 for each violation of the State’s real estate laws. 4. On January 25, 2013, the Commissioner of the Department (Commissioner) issued Findings of Fact, Conclusions of Law, and Order deeming admitted the allegations set forth in the Notice of Hearing, and revoked Respondents real estate licenses. 5. The Department argued that Respondents’ violations of A.R.S. § 32-2153(A)(16), A.R.S. § 32-2153(A)(21), A.R.S. § 32-2153(A)(22), A.R.S. § 32-2153(B)(1), A.R.S. § 32- 2153(B)(2), and A.R.S. § 32-2153(B)(8) warranted the imposition of a civil penalty for the six violations of law, for a total civil penalty of $6,000.00; however, the Department sought to impose a total civil penalty of only $3,000.00. 6. Respondents did not present any evidence or legal argument to refute or rebut the evidence or legal arguments presented by the Department in support of the imposition of civil penalties in this matter. CONCLUSIONS OF LAW 1. This matter lies within the jurisdiction of the Department. See A.R.S. Title 32, Chapter 20. 2. Because this matter is disciplinary in nature, the Department bears the burden of proof. The standard of proof on all issues is by a preponderance of the evidence. See A.A.C. R2-19-119. 3. A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.” Morris K. Udall, Arizona Law of Evidence § 5 (1960). It is “[e]vidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary 1182 (6th ed. 1990). 4. The Commissioner has the authority to impose a civil penalty of up to $1,000.00 for each violation of the Arizona real estate laws. See A.R.S. § 32-2160.01. 5. The Department proved by a preponderance of the evidence, and the Commissioner of the Department found in the January 25, 2013 Findings of Fact, Conclusions of Law, and Order that Respondents violated A.R.S. § 32- 2153(A)(16), A.R.S. § 32-2153(A)(21), A.R.S. § 32- 2153(A)(22), A.R.S. § 32-2153(B)(1), A.R.S. § 32- 2153(B)(2), and A.R.S. § 32-2153(B)(8). 6. On January 28, 2013, the Office of Administrative Hearings received a letter from Respondent Lockhart admitting she took “the security deposit funds of $23,466.12 in a failed attempt to save [her] commercial building from foreclosure” and that she agreed with the revocation of her license. 7. By engaging in the conduct as found in the above Findings of Fact, Conclusions of Law, and Order issued by the Commissioner, Respondents were found to have disregarded or violated the provisions of A.R.S., Title 32, Chapter 20, within the meaning of A.R.S. § 32- 2153(A)(3). 8. Based upon the above, grounds exist to impose a total civil penalty in the amount of $6,000.00 against Respondents for the six violations found above, pursuant to A.R.S. § 32-2160.01. Therefore, the $3,000.00 civil penalty requested by the Department is determined to be reasonable and appropriate under the circumstances. ORDER Within 60 days of the effective date of the Order entered in this matter, Respondent Susie Lockhart and Respondent Rent-A-Home are jointly and severally liable to pay to the Department a civil penalty in the amount of $3,000.00, and such payment shall be made by cashier’s check or money order made payable to the Department. 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 five days from the date of that certification. Done this day, April 3, 2013.

/s/ Tammy L. Eigenheer Administrative Law Judge

Transmitted electronically to:

Judy Lowe, Commissioner Arizona Department of Real Estate -----------------------

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