ALJDEC decisions subject to certification as final

2010A-18164632-ROC · Registrar of Contractors · 2010-07-26

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 21, 2010 at 8:00 a.m. APPEARANCES: The Complainant appeared on her own behalf. The Respondent appeared through its authorized representative, Michael Riutta. 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 K-42 (No. 167482) License was suspended on July 18, 2010 for lack of bond and is not able to contract with this license at this time. 2. This is a residential matter where the Respondent entered into a construction agreement with the Complainant to perform roofing work on the Complainant’s residence. 3. During the course of construction, the personal relationship between the parties deteriorated rapidly. The parties demonstrated a near inability to effectively communicate with each other. 4. The Complainant was dissatisfied with the Respondent’s workmanship and with the Respondent’s failure to complete the agreed upon roofing work to her satisfaction despite her repeated demands that it do so. 5. When the Respondent failed to comply with the Complainant’s demands, the Complainant filed a formal Complaint against the Respondent with the Registrar of Contractors. 6. Pursuant to the filing of the formal Complaint, an assigned Agency Inspector conducted an on-site inspection and issued a written Corrective Work Order directing the Respondent to perform designated corrective work on the Complainant’s residence. 7. The assigned Agency Inspector testified that he had conducted a prehearing inspection and found that the Respondent had failed to fully comply with the terms of the Corrective Work Order issued in this matter. 8. Credible testimony and evidence established that the Respondent has failed to fully comply with the terms of the Corrective Work Order. 9. Credible evidence and testimony established that portions of the roofing work completed by the Respondent fail to comply with applicable workmanship and industry standards and require proper repair or replacement. 10. Credible testimony and evidence established that the Respondent has failed to complete the agreed upon roofing work on the Complainant’s residence. 11. Both parties demonstrated an ongoing inability to effectively communicate or to schedule the onsite work, and both repeatedly resorted to the use of Registrar of Contractors’ personnel to act as intermediaries. This is not an appropriate agency function; the parties are all adults and are fully capable of communicating with each other. 12. A licensed contractor is not entitled to an unlimited period of time or an endless succession of opportunities to comply with specified conditions which reduce, eliminate, or terminate, disciplinary action against the Contractor’s License. 13. Although the Registrar of Contractors normally allows a contractor a reasonable opportunity to correct its own construction deficiencies and errors subsequent to hearing, under all of the salient facts and circumstances presented herein and, particularly in view of the suspended status of the Respondent’s contracting license, any condition placed into this Order for the purpose of allowing the Respondent to accomplish corrective action as a means to reduce or eliminate otherwise appropriate disciplinary penalties should require that the Respondent reach a financial agreement with the Complainant. 14. 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 violations by the Respondent of the provisions of A.R.S. § 32-1154: A(1) (Abandonment), A(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 that, on the effective date of the Registrar’s Order, the Respondent’s Class K-42 (No. 167482) License be revoked unless the Registrar of Contractors receives and accepts written proof that the Respondent has reached a financial resolution of this matter with the Complainant. It is further recommended that if the Respondent properly accomplishes the above described action, on or before the effective date of this Order, then the above provided License revocation shall not take place and that this matter shall be closed. It is further recommended, in addition to the above-provided penalties, if any, that the 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 the 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 the 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, July 26, 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