ALJDEC decisions subject to certification as final

2013A-1814-ROC · Registrar of Contractors · 2013-08-15

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: July 31, 2013, at 8:00 a.m. APPEARANCES: Complainant the Arizona Registrar of Contractors was represented by John R. Tellier Esq., Office of the Attorney General. Celtic Construction Inc (hereinafter “Celtic”) appeared through its qualifying party and officer, Sean William Claffey. ADMINISTRATIVE LAW JUDGE: M. Douglas _____________________________________________________________________

The Registrar of Contractors brings this license disciplinary action alleging as follows: That on or abut October 5, 2011, Celtic entered into a contract with T. Morrissey Corporation (hereinafter “Morrissey”) to perform construction work including, but not limited to, metal stud framing and drywall work at BiCE Ristorante (hereinafter “BiCE”) located at 8700 E. Pinnacle Peak Road, Scottsdale, Arizona for $68,250.00. That on or about October 19, 2011, Celtic entered into a contract with Morrissey to perform construction work including, but not limited to, electrical work at BiCE for $157,612.00. That on or about October 20, 2011, Celtic entered into a contract with Morrissey to perform construction work including, but not limited to, concrete, rough carpentry, acoustical ceiling and insulation work at BiCE for $156,398.00 That on or about February 1, 2012, Celtic entered into a contract with Morrissey to perform construction work at BiCE for $60,730.00. That on or about February 10, 2012, Celtic entered into a contract with Morrissey to perform construction work including, but not limited to, electrical, concrete, drywall and framing work at Lucky Strike located at West Jefferson St., Suite 24, Phoenix Arizona (hereinafter “Lucky Strike”) for $204,500.00. That on or about March 8, 2012, Celtic entered into a contract with Morrissey to perform construction work including, but not limited to, rough carpentry, steel stud framing, drywall, acoustical ceiling, insulation, and electrical work at CVS Store #02963 located at 711 East Indian School Road, Phoenix, Arizona (hereinafter “CVS”) for $204,500.00. That on or about January 10, 2013, Celtic filed a complaint with the Registrar of Contractors against Morrissey for lack of payment pursuant to the October 19, 2011 contract for work performed at BiCE, and for lack of payment for construction work performed at 50 W. Jefferson Street, Suite 24, Phoenix, Arizona. That on or about March 1, 2013, Morrissey filed a complaint with the Registrar of Contractors against Celtic alleging that Morrissey had overpaid Celtic on a construction project and that Celtic owed Morrissey $60,564.97. That on or about January 13, 2013, Celtic sent correspondence that did not properly display Celtic’s contractor’s license number as required by A.R.S. § 32-1124(B). Celtic acknowledged that it entered into the written sub-contacts with Morrissey referred to in the Complaint. Celtic asserted that it was working under Morrissey’s license. Celtic argued that disciplinary action against License No. K-61.231339-D of Celtic should be greatly mitigated based on the circumstances surrounding the events that gave rise to the Registrar of Contractors’ Complaint. Evidence and testimony were presented and the following Findings of Fact, Conclusions of Law and Recommended Order are made: FINDINGS OF FACT Celtic is the holder of License No. K-61.231339-D issued by the Registrar of Contractors.[1] Testimony of Inspector Eric Ulinger. The Registrar of Contractors Recovery Fund Supervisor, Eric Ulinger (hereinafter “Inspector Ulinger”), testified that he had previously been an Inspector for the Registrar of Contractors for over seven years. Inspector Ulinger testified that Celtic’s License No. K-61.231339-D was limited to the performance of no more than $50,000.00 worth of construction work on a commercial construction remodeling project and no more than $25,000 worth of construction work for a residential remodeling project. Inspector Ulinger stated that a licensed contractor cannot perform work under another contractor’s license. Inspector Ulinger testified that metal stud and drywall work that Celtic contracted for and performed at BiCE for $68,250.00, pursuant to its October 5, 2011 contract with Morrissey was beyond the scope of Celtic’s License No. K-61.231339-D.[2] Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that the electrical work that Celtic contracted for and performed at BiCE for $157,612.00, pursuant to its October 19, 2011 contract with Morrissey was beyond the scope of Celtic’s License No. K- 61.231339-D.[3] Inspector Ulinger stated that Celtic contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that Celtic is not licensed to perform electrical work. Inspector Ulinger testified that the concrete, rough carpentry, acoustical ceiling, and insulation work that Celtic performed at BiCE for $156,398.00, pursuant to its October 20, 2011 contract with Morrissey was beyond the scope of Celtic’s License No. K-61.231339-D.[4] Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that the construction work that Celtic contracted for and performed at BiCE for $60,730.00 pursuant to its February 1, 2012 contract with Morrissey was beyond the scope of Celtic’s License No. K-61.231339-D.[5] Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that the electrical, concrete, drywall, and framing work that Celtic contracted for and performed at Lucky Strike for $204,500.00, pursuant to its February 10, 2012 contract with Morrissey was beyond the scope of Celtic’s License No. K-61.231339-D.[6] Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that Celtic is not licensed to perform electrical work. Inspector Ulinger testified that the rough carpentry, steel stud framing, drywall, acoustical ceiling, insulation, and electrical work that Celtic contracted for and performed at CVS for $204,500.00, pursuant to its March 8, 2012 contract with Morrissey was beyond the scope of Celtic’s License No. K-61.231339-D.[7] Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial project. Inspector Ulinger testified that Celtic is not licensed to perform electrical work. Inspector Ulinger testified that on January 10, 2013, Celtic filed a complaint with the Registrar of Contractors against Morrissey for its alleged failure to pay Celtic pursuant to the October 19, 2011 contract for work performed at a construction site located at 50 W. Jefferson Street, Suite 24, Phoenix, Arizona.[8] Inspector Ulinger stated that the total contract amount stated on the Complaint was $260,145.37 and that Celtic alleged that it was owed $127,653.98 for the performance of framing, drywall, door, and electrical work. Inspector Ulinger stated that Celtic’s contractor’s license was limited to the performance of no more than $50,000.00 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that Celtic is not licensed to perform electrical. Inspector Ulinger testified that on March 1, 2013, Morrissey filed a complaint with the Registrar of Contractors against Celtic alleging that Morrissey had overpaid Celtic on a construction project at 711 East Indian School Road, Phoenix, Arizona, and that Celtic owed Morrissey $60,564.97.[9] Inspector Ulinger stated that Morrissey’s Complaint stated that the total amount paid to Celtic was $241,624.74, and that Celtic had been overpaid and owed Morrissey the sum of $60,564.97. Inspector Ulinger testified that Celtic’s contractor’s license is limited to the performance of no more than $50,000 worth of construction work on a commercial remodeling project. Inspector Ulinger testified that the request for formal citation and administrative hearing that Celtic filed with the Registrar of Contractors on January 25, 2013, did not display Celtic’s contractor’s license number, as required by A.R.S. § 32-1124(B).[10] Inspector Ulinger testified that on January 4, 2013, the Registrar of Contractors received a Complaint against Morrissey filed by Michael Claffey on behalf of an entity identified as Steelability Inc.[11] Inspector Ulinger stated that Celtic had utilized Steelability Inc. as a subcontractor on some of the construction projects that Celtic had performed for Morrissey. Inspector Ulinger testified that Steelability Inc. is not a licensed contractor in the State of Arizona. Inspector Ulinger opined that Celtic had contracted with an unlicensed contractor.[12] Inspector Ulinger testified that on January 4, 2013, the Registrar of Contractors received a Complaint against Morrissey filed by Michael Claffey on behalf of Celtic.[13] Inspector Ulinger stated that the Complaint stated that Celtic had been paid $413,904.10 by Morrissey for framing, drywall, doors, floors, wall panels, FRP,[14] and acoustical ceiling work at a construction site located at 8700 E. Pinnacle Peak Road, Scottsdale, Arizona. Inspector Ulinger testified that the Complaint alleged that Morrissey owed Celtic an additional $97,188.50 for the construction work that Celtic performed for Morrissey. Inspector Ulinger stated that Celtic’s contractor’s license is limited to the performance of no more than $50,000.00 worth of construction work on a commercial project. Testimony of Thomas Patrick Morrissey. Thomas Patrick Morrissey (hereinafter “Mr. Morrissey”) testified that he is the qualifying party, owner, and president of Morrissey. Mr. Morrissey stated that Morrissey is a commercial general contractor that generally builds for national restaurant chains and constructs senior housing. Mr. Morrissey testified that Morrissey holds a commercial general contractor’s license issued by the Registrar of Contractors.[15] Mr. Morrissey testified that Morrissey had utilized Celtic as a subcontractor for commercial construction in the Phoenix area starting with the BiCE construction project in 2011. Mr. Morrissey stated that Celtic never indicated that it could not perform electrical work or that it was subcontracting electrical work. Mr. Morrissey testified that Celtic never disclosed any limitations on its contractor’s license. Mr. Morrissey testified that Morrissey’s October 5, 2011 contract with Celtic prohibited Celtic from delegating, transferring, conveying, subcontracting, relinquishing, or otherwise disposing of the whole or any part of its duties under the contract without Morrissey’s prior written approval.[16] Mr. Morrissey stated that Celtic never requested prior written approval for subcontracting any work under the contract. Mr. Morrissey testified that Celtic was prohibited from assigning its rights under the contract without Morrissey’s prior approval.[17] Mr. Morrissey testified that the October 5, 2011 contract was a standard contract form and that all of Morrissey’s contracts with Celtic prohibited Celtic from subcontracting work under the contract without prior written approval from Morrissey. Mr. Morrissey stated that Celtic never asked for approval to use a subcontractor for any of the construction projects that Morrissey subcontracted to Celtic. Mr. Morrissey testified that typically, Morrissey issues contracts before any work is done. Mr. Morrissey stated that if Celtic did any work before a contract was issued, it would not have been very much work. Mr. Morrissey testified that Celtic was hired to do the work specified in the contracts. Mr. Morrissey stated that Celtic was well aware of the scope of the work to be performed before the contracts were signed. Mr. Morrissey denied that Morrissey ever placed Celtic under any duress to sign any of the construction contracts that Celtic entered into with Morrissey. Mr. Morrissey stated that Morrissey would provide the property owner with whom Morrissey contracted with Celtic’s name for the line items that were completed by Celtic. Mr. Morrissey testified that Morrissey had agreed that the Registrar of Contractors could suspend its Arizona contractor’s license because Morrissey had failed to check on Celtic’s licensure. Mr. Morrissey testified that he understood that Celtic had performed all of the construction work specified in the parties’ construction contracts. Mr. Morrissey stated that he did have any knowledge that Celtic subcontracted any of the contracted work. Mr. Morrissey testified that Morrissey did not give permission to Celtic to subcontract any of the work that was to be performed under any of Morrissey’s contracts with Celtic. Mr. Morrissey testified that Morrissey’s project manager, Mike Rose (hereinafter “Mr. Rose”), would not have been authorized to grant permission for Celtic to subcontract any of the construction work that was to be performed under Morrissey’s contracts with Celtic. Mr. Morrissey denied any knowledge that Mr. Rose had given Celtic permission to subcontract any of the construction work that was required to be performed under Morrissey’s contracts with Celtic. Testimony of Cindy Ortner Cindy Ortner (hereinafter “Ms. Ortner”) testified that she had been Morrissey’s project coordinator/project assistant for the BiCE construction project. Ms. Ortner stated that Mr. Rose was involved in every construction project in the Phoenix office and had authority to sign change- orders. Ms. Ortner testified that she was unaware of any discussion regarding Celtic’s license status. Ms. Ortner testified that Morrissey paid Celtic on a weekly basis. Ms. Ortner stated that Celtic was being paid weekly to help Celtic because it was performing work at BiCE, CVS, and Lucky Strike. Ms. Ortner testified that Celtic did not receive any checks from Morrissey until the construction contracts were signed. Ms. Ortner acknowledged that Celtic may have performed some construction work before the construction contracts were signed by Celtic. Ms. Ortner testified that all change orders had to be processed by the California corporate office of Morrissey. Ms. Ortner stated that change orders had to be approved by the developer, then the Phoenix office of Morrissey, and finally the California corporate office of Morrissey. Ms. Ortner acknowledged that she did not know if Mr. Rose had authority to approve change orders. Ms. Ortner testified that project managers could make recommendations for change orders but that the ultimate authority rested with the California corporate office of Morrissey. Mr. Ortner stated that there were probably ten other subcontractors on the CVS construction project. Ms. Ortner testified that there were probably eight to ten subcontractors on the Lucky Strike construction project. Ms. Ortner testified that the weekly checks issued by Morrissey for the work performed by Celtic were issued to Celtic, not to the individuals who worked for Celtic. Testimony of Michael Lee Claffey. Michael Lee Claffey (hereinafter “Mr. M. Claffey”) testified that Mr. Rose gave him authority to subcontract work for the construction contracts that Celtic had with Morrissey. Mr. M. Claffey stated that Celtic was paid weekly by Morrissey because Morrissey needed to get the construction projects completed as quickly as possible. Mr. M. Claffey testified that Celtic worked for almost four months on the BiCE construction project before Celtic signed a contract with Morrissey. Mr. M. Claffey testified that he informed Mr. Rose that Celtic was not licensed to “do that kind of stuff” and was advised “not to worry about it, just get it done.” Mr. M. Claffey stated that Celtic signed the contract for the BiCE construction project because Mr. Rose threatened that Celtic would not be paid for the work that had been completed that week unless Celtic signed the contract. Mr. M. Claffey testified that he signed the contract so that Celtic could pay its employees. Mr. M. Claffey testified that Celtic entered into the construction contracts with Morrissey because Celtic “had nothing else going on.” Mr. M. Claffey stated that Celtic needed the construction work from the contracts with Morrissey to kept Celtic’s employees paid. Mr. M. Claffey testified that Mr. Rose stated that Celtic could work under Morrissey’s license. Mr. M. Claffey testified that he did not know that Celtic could not perform construction work under another contractor’s license. Mr. M. Claffey acknowledged that he had “recently” been informed by the Registrar of Contractors that Celtic could not perform construction work under another contractor’s license. Mr. M. Claffey stated that he knew that Morrissey allowed other contractors to work under its license. Mr. M. Claffey testified that Celtic completed approximately twenty construction projects for Morrissey. Mr. M. Claffey stated that there were no workmanship problems with the work that Celtic performed for Morrissey. Mr. M. Claffey testified that Celtic became Morrissey’s preferred contractor “because Morrissey knew that Celtic would get the job done.” Mr. M. Claffey testified that he saw Mr. Morrissey at the BiCE construction project twice. Mr. M. Claffey stated that Mr. Morrissey was fully aware that Celtic was performing work at the BiCE construction project. Mr. M. Claffey testified that Celtic stopped working with Morrissey on construction projects because Morrissey stopped paying Celtic. Mr. M. Claffey stated that Morrissey’s failure to pay Celtic was aggravating because Celtic had performed so much extra work for Morrissey. Mr. M. Claffey testified that Celtic had applied for a Class B-1 License with the Registrar of Contractors. Mr. M. Claffey stated that the Registrar of Contractors was waiting for the results of its Complaint against Celtic before taking action on the new license application. Mr. M. Claffey testified that the documentation for the new Class B-1 license application had been “sitting down” at the Registrar of Contractors for six to eight months. Mr. M. Claffey testified that Celtic had subcontracted the construction work that it was not licensed to perform on the Morrissey construction projects. Mr. M. Claffey stated that he did not remember all of the names of the subcontractors. Mr. M. Claffey testified that one of the subcontractors was “Why Electric.”[18] Mr. M. Claffey acknowledged that did not have any of the subcontracts with him at the hearing. Mr. M. Claffey stated that the subcontracts “were all digital.” Mr. M. Claffey acknowledged that Celtic had failed to place its contractor’s license number on the October 5, 2011 subcontract with Morrissey.[19] Mr. M. Claffey acknowledged that Celtic had failed to place its contractor’s license number on the October 19, 2011 subcontract with Morrissey.[20] Mr. M. Claffey acknowledged that Celtic failed to place its contractor’s license number on the October 20, 2011 subcontract with Morrissey.[21] Mr. M. Claffey testified that he placed Celtic’s contractor’s license number on all of its subsequent subcontracts with Morrissey. Mr. M. Claffey testified that Celtic prepared bids for all of the construction work that it performed for Morrissey. Mr. M. Claffey stated that he did not have copies of the bids with him at the hearing. Mr. M. Claffey acknowledged that all of the construction contracts with Morrissey were for construction projects in excess of $50,000.00. Mr. M. Claffey acknowledged that the electrical work that Celtic contracted for and performed at BiCE for $157,612.00, pursuant to its October 19, 2011 contract with Morrissey was beyond the scope of Celtic’s contractor’s license. Mr. M. Claffey acknowledged that Celtic was not licensed to perform electrical work. Mr. M. Claffey testified that he asked Morrissey to write the October 19, 2011 subcontract to “Why Electric” rather than Celtic. Mr. M. Claffey acknowledged that he signed the October 19, 2011 subcontract for Celtic.[22] Mr. M. Claffey testified that the only time Celtic subcontracted out electrical work to an electrical subcontractor, identified as “Why Electric,” was on the October 19, 2011 BiCE subcontract. Mr. M. Claffey stated that Celtic performed all of the electric work required in the February 10, 2012 Lucky Strike subcontract.[23] Mr. M. Claffey testified that Celtic performed all of the electric work required in the March 8, 2012 CVS subcontract.[24] Mr. M. Claffey acknowledged that Celtic was not licensed to perform electrical work. Mr. M. Claffey acknowledged that Celtic knew that it was contracting beyond the scope of Celtic’s License No. K-61.231339-D when Celtic entered into the written subcontracts with Morrissey. Mr. M. Claffey testified that Celtic had “upwards of sixty” employees and needed the work to keep them employed. Mr. M. Claffey stated that he entered into the contracts with Morrissey on behalf of Celtic because he made a “moral decision rather than a business decision.” Mr. M. Claffey testified that he does not have a title and was not an officer of Celtic. Mr. M. Claffey stated that “he helps his son out.” Mr. M. Claffey stated that he “ran” the Morrissey construction projects for Celtic. Mr. M. Claffey testified that he identified himself as a vice-president of Celtic when he signed the Morrissey subcontracts for Celtic. Mr. M. Claffey stated that he did not have to be an officer of Celtic in order to identify himself as a vice-president of Celtic. Testimony of Sean William Claffey Celtic’s qualifying party and officer, Sean William Claffey (hereinafter “Mr. Claffey”), testified that he knew that Celtic went “above its limits” for Celtic’s License No. K-61.231339-D. Mr. Claffey stated that the limited scope of Celtic’s License No. K-61.231339-D was brought to Celtic’s attention after it had completed most of the Morrissey construction projects. Mr. Claffey testified that he interpreted the scope of Celtic’s License No. K-61.231339-D as being unlimited for basic carpentry work. Mr. Claffey testified that he knew that it was wrong for Celtic go above the $50,000.00 limit for non-carpentry construction work. Mr. Claffey stated that Celtic had no choice because “it needed the work and Morrissey kept giving it construction contracts.” Mr. Claffey testified that Celtic did not experience any problems with the construction projects until Morrissey stopped paying Celtic for its completed construction work. Mr. Claffey stated that Celtic completed a large amount of work that Celtic was not paid for. Mr. Claffey testified that he only met Mr. Morrissey one time. Mr. Claffey stated that Mr. Morrissey informed him that Celtic owed Morrissey money. Mr. Claffey denied that Celtic owed Morrissey any money. Mr. Claffey testified that Celtic completed all of the contracted construction work for Morrissey despite not being fully paid by Morrissey. Mr. Claffey testified that he was not sure “if it was legal or not” when Celtic’s representative signed contracts with Morrissey to perform electrical work. Mr. Claffey stated that when the contract was signed, he was under the impression that Celtic would be “subletting” the electrical work. Mr. Claffey acknowledged that Celtic did not “sublet” any of the electrical work that it contracted with Morrissey to perform. Mr. Claffey testified that his father, Mr. M. Claffey, was vice-president of Celtic and worked as the general supervisor for Celtic. Mr. Claffey stated that Mr. M. Claffey had full authority to sign contracts on behalf of Celtic. Administrative notice is taken of Celtic’s prior license record as reflected on the Registrar of Contractors’ public website on August 13, 2013. Such prior license record reflects that License No. K-61.231339-D was placed on disciplinary license probation from July 7, 2013, through July 7, 2014. Celtic’s License No. K-61.231339-D was suspended from June 6, 2013, through July 6, 2013. Celtic’s License No. K-61.231339-D was suspended until compliance on July 22, 2011, through August 25, 2011. Celtic’s License No. K-61.231339-D was suspended for non-renewal from April 1, 2011, through May 17, 2011. Celtic’s License No. K-61.231339-D was suspended for lack of bond from March 24, 2011, through April 25, 2011. Celtic’s License No. K-61.231339-D was suspended for lack of bond from March 22, 2010, through April 12, 2010. Celtic’s License No. K-61.231339-D was suspended from April 1, 2009, through April 21, 2009, for non-renewal. Celtic’s License No. K-61.231339-D was suspended for lack of bond from April 20, 2009 through April 21, 2009 for lack of bond. Celtic’s License No. K-61.231339-D was suspended from April 24, 2008, through June 26, 2008, for lack of bond. CONCLUSIONS OF LAW 1. The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by a preponderance of the evidence. See A.A.C. R2-19-119. 2. 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). 3. A.A.C. R4-9-103 defines the scope of Celtic’s License No. K-61.231339-D as follows: K-61 CARPENTRY, REMODELING AND REPAIRS This classification allows the scope of work permitted by the commercial L-61 Carpentry, Remodeling and Repairs and the residential C-61 Limited Remodeling and Repair Contractor licenses.

4. A.A.C. R4-9-103 defines the scope of an L-61 Carpentry, Remodeling and Repairs License as follows: All rough and finish general carpentry work on new and existing structures, including installation of related hardware and accessories, without dollar limitation. All general remodeling, additions, replacements, and repairs to existing structures, and pre-manufactured items on existing structures, except electrical, plumbing, and air conditioning system work which shall be sublet to properly licensed contractors. A single contract for remodeling, repair, or a combination of both, shall not exceed $50,000.

5. On January 13, 2013, Celtic sent correspondence to the Registrar of Contractors that did not properly display Celtic’s contractor’s license number. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32-1154(A)(13), namely, A.R.S. § 32-1124(B). [25] 6. Celtic knowingly contracted with Morrissey on October 5, 2011, for a commercial construction remodeling project for a total contract amount of $68,250.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32-1154(A)(17).[26] 7. Celtic knowingly contracted with Morrissey on October 19, 2011, for a commercial construction remodeling project for a total contract amount of $157,612.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32-1154(A)(17). 8. Celtic knowingly contracted with Morrissey on October 20, 2011, for a commercial construction remodeling project for a total contract price of $156,398.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32- 1154(A)(17). 9. Celtic knowingly contracted with Morrissey on February 1, 2012, for a commercial construction remodeling project for a total contract price of $60,730.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32-1154(A)(17). 10. Celtic knowingly contracted with Morrissey on February 10, 2012, for a commercial construction remodeling project for a total contract price of $245,800.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32- 1154(A)(17). 11. Celtic knowingly contracted with Morrissey on March 8, 2012, for a commercial construction remodeling project for a total contract price of $204,500.00. Celtic’s License No. K-61.231339-D allows Celtic to contract for remodeling or repair, or a combination of both, but the value of both shall not exceed a total of $50,000.00. This Tribunal concludes that Celtic violated the charged provision of A.R.S. § 32- 1154(A)(17). RECOMMENDed order In view of the foregoing, it is recommended that Celtic’s License No. K-61.231339-D shall be revoked. 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 15, 2013

M. Douglas Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors

----------------------- [1] See Exhibit No. 1 (License No. K-61.231339-D issued to Celtic). [2] See Exhibit No. 2 (10/5/11 Subcontract). [3] See Exhibit No. 3 (10/19/11 Contract). [4] See Exhibit No. 4 ( 10/20/11 Subcontract). [5] See Exhibit No. 5 (2/1/12 Subcontract). [6] See Exhibit No. 6 (2/10/12 Subcontract). [7] See Exhibit No. 7 (3/8/12 Subcontract). [8] See Exhibit No. 8 (1/10/13 Registrar of Contractors Complaint filed by Celtic). [9] See Exhibit No. 9 (3/1/13 Registrar of Contractors Complaint filed by Morrissey against Celtic). [10] See Exhibit No. 10 (1/25/13 Request for formal citation and administrative hearing). [11] See Exhibit No. 11 (1/4/13 Complaint filed with Registrar of Contractors). [12] Administrative notice is taken of a search on the Registrar of Contractors’ public website on August 9, 2013. Such prior license record search failed to locate a contractor’s license for an entity entitled Steelability Inc.

[13] See Exhibit No. 12 (1/3/13 Complaint filed by Celtic). [14] Fiber-Reinforced Polymer. [15] License No. B-1.250655-C issued to T Morrissey Corporation. [16] See Exhibit No. 2 (10/5/12 Subcontract, paragraph 8.17). [17] See Exhibit No. 2 (10/5/11 Subcontract, 20.1). [18] Administrative notice is taken of a search on the Registrar of Contractors’ public website on August 13, 2013. This Tribunal was unable to locate any licensing information for “Why Electric” or “Y Electric.” [19] See Exhibit No. 2 (10/5/11 Subcontract). [20] See Exhibit No. 3 (10/19/11 Subcontract). [21] See Exhibit No. 4 (10/20/11 Subcontract). [22] See Exhibit No. 3 (10/19/11 Subcontract). [23] See Exhibit No. 6 (2/10/12 Subcontract). [24] See Exhibit No. 7 (3/8/12 Subcontract). [25] A.R.S. § 32-1154(A)(13) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, “[f]ailure in any material respect to comply with this chapter.” A.R.S. § 32-1124(B) provides, in pertinent part, as follows:

Licenses issued under this chapter and any renewals shall be signed by the registrar or the registrar's designated representative and by the licensee. The license shall be nontransferable, and satisfactory evidence of possession shall be exhibited by the licensee upon demand. The license number appearing on any licenses held by the licensee shall be preceded by the acronym "ROC" and shall be posted in a conspicuous place on premises where any work is being performed, shall be placed on all written bids submitted by the licensee and shall be placed on all broadcast, published, internet or billboard advertising, letterheads and other documents used by the licensee to correspond with the licensee's customers or potential customers in the conduct of business regulated by this chapter. A violation of this subsection relating to posting and placement of license numbers shall be, at the discretion of the registrar, grounds for disciplinary action pursuant to section 32-1154, subsection A, paragraph 13, but not grounds for preventing the award of a contract, voiding an awarded contract, or any other claim or defense against the licensee. For the purposes of this subsection, advertising does not include a trade association directory listing that is distributed solely to the members of the association and not to the general public.

[26] A.R.S. § 32-1154(A)(17) includes among the grounds for disciplinary action against a contractor’s license, knowingly contracting beyond the scope of the license or licenses of the licensee.

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