ALJDEC decisions subject to certification as final

2010A-308476508-ROC · Registrar of Contractors · 2011-08-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 22, 2011, at 1:00 p.m. APPEARANCES: The Complainants appeared through Judy Sorenson. 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 Complainants are found to be a “person injured” as defined by statute and are found to be entitled to receive payment from the Contractors’ Recovery Fund for damages sustained as a result of the Respondent’s acts or omissions. 2. There was no dispute that that the Respondent’s License was placed on suspension as a result of an Order to remedy a violation issued in Case No. 2010-[number redacted]. 3. There was no dispute that the Respondent had failed to comply with the terms of the Registrar’s Order and that the Respondent’s License was still under suspension as of the date of the hearing in this matter. 4. Undisputed credible testimony and evidence established that the Complainants paid the Respondent the sum of $6,000.00 as a deposit for a construction project where no actual construction work was performed and no materials were delivered. 5. Undisputed credible testimony and evidence established that the Complainants received nothing of value for the $6,000.00 that they paid the Respondent as a deposit. 6. Based upon credible evidence produced at hearing, it is found that a proper and reasonable amount payable to the Complainants from the Contractors’ Recovery Fund for the Complainants’ actual damages is the sum of $6,000.00 representing the exact dollar amount of the deposit the Complainants paid the Respondent in this matter. CONCLUSIONS OF LAW 1. A.R.S. 32-1132(A) provides, in pertinent part, as follows: A. The residential contractors' recovery fund is established, to be administered by the registrar, from which any person injured by an act, representation, transaction or conduct of a residential contractor licensed pursuant to this chapter that is in violation of this chapter or the rules adopted pursuant to this chapter may be awarded in the county where the violation occurred an amount of not more than thirty thousand dollars for damages sustained by the act, representation, transaction or conduct. An award from the fund is limited to the actual damages suffered by the claimant as a direct result of the contractor's violation but shall not exceed an amount necessary to complete or repair a residential structure or appurtenance within residential property lines. Actual damages shall not be established by bids supplied by or the value of work performed by a person or entity that is not licensed pursuant to this chapter and that is required to be licensed pursuant to this chapter. If the claimant has paid a deposit or down payment and no actual work is performed or materials are delivered, the award of actual damages shall not exceed the exact dollar amount of the deposit or down payment plus interest at the rate of ten per cent a year from the date the deposit or down payment is made or not more than thirty thousand dollars, whichever is less. 2. Under the facts and circumstances of this matter, the Registrar of Contractors is empowered to determine and award proper payment to the Complainants from the Contractors’ Recovery Fund pursuant to the provisions of A.R.S. § 32-1154 (F). 3. The credible evidence of record supports an award from the Contractors’ Recovery Fund to the Complainants in the sum of $6,000.00 all of which shall be appropriately chargeable against the Respondent and/or persons on the Respondent’s License as set forth in A.R.S. § 32-1139(B) RECOMMENDed order In view of the foregoing, it is recommended that the Registrar commence and finalize payment procedures from the Contractors’ Recovery Fund to the Complainants in the total amount of $6,000.00 for the Complainant’s actual damages in this matter. 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 22, 2011.

/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