ALJDEC decisions subject to certification as final

2011A-1207-ROC · Registrar of Contractors · 2011-08-17

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 29, 2011 APPEARANCES: King Insulation of Arizona, L.L.C. was represented by its authorized representative, Gary Schneider. Jade Builders, L.L.C. was represented by its authorized representative, James Kroll. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ Based upon the evidence of record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law, and Recommended Order: FINDINGS OF FACT 1. King Insulation of Arizona, L.L.C. (“Complainant”) is the holder of License No. 234613, a Class K-40 contracting license issued by the Registrar of Contractors (“Registrar”). 2. Jade Builders, L.L.C. (“Respondent”) is the holder of License No. 246917, a Class KB-1 contracting license issued by the Registrar. 3. In 2010, Complainant furnished and installed thermal and sound installation for Respondent on a commercial building project located at 3841 East Baseline Road, Gilbert, Arizona. Respondent was the general contractor for the project. 4. On February 28, 2011, Complainant filed a written Complaint with the Registrar alleging that Respondent owes Complainant the sum of $10,485.00, plus attorney fees, for work performed by Complainant for Respondent on the subject project. The Registrar designated the Complaint as Case No. 2011-1207. 5. The Registrar issued a Citation and Complaint in Case No. 2011-1207 charging Respondent with violating the provisions of A.R.S. § 32- 1154(A) (11). 6. The Registrar forwarded Case No. 2011-1207 to the Office of Administrative Hearings, an independent agency, for an evidentiary hearing. 7. The parties’ contract did not contain a “pay when paid” provision. Therefore, Complainant did not agree to wait for payment from Respondent until Respondent was paid by the building’s owner and tenant. 8. There is credible evidence establishing that Respondent paid other subcontractors to complete their respective scopes of work after Complainant had completed its scope of work. 9. The building’s owner and tenant owe Respondent money for the subject project. 10. The evidence of record established that Respondent owes Complainant the sum of $10,485.00 for work Complainant performed for Respondent on the subject project. 11. A review of the Registrar’s official electronic licensing records reveals that Respondent’s License No. 246917 was suspended by operation of law on April 16, 2011, for lack of bond. Respondent’s license expired on August 1, 2011. CONCLUSIONS OF LAW 1. The Registrar has jurisdiction over Respondent and the subject matter in this case. 2. Pursuant to A.R.S. § 32-1154(C), the suspension and expiration of Respondent’s contracting license does not deprive the Registrar of the authority to impose discipline upon the license for proven statutory violations in this matter. 3. The evidence of record supports the conclusion that Respondent violated the provisions of A.R.S. § 32-1154(A) (11), as charged in the Citation and Complaint issued by the Registrar.

RECOMMENDED ORDER Respondent’s License No. 246917 shall be revoked on the effective date of the Order entered in Case No. 2011-1207. 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 40 days from the date of that certification.

Done this day, August 17, 2011.

/s/ Brian Brendan Tully 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