ALJDEC decisions subject to certification as final

2014A-2164-ROC · Registrar of Contractors · 2015-02-19

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: February 10, 2015. APPEARANCES: The Arizona Registrar of Contractors (hereinafter “Registrar”) was represented by Assistant Attorney General Seth T. Hargraves, Esq. Yariv Homes, LLC, License No. B.241673-R (hereinafter “Yariv” or “Respondent”) appeared through its attorney, Brad Shelb, Esq. ADMINISTRATIVE LAW JUDGE: M. Douglas _____________________________________________________________________

The Registrar alleged that Yariv violated contractor licensing statutes. The parties appeared and entered stipulations and agreements into the record as follows.

FINDINGS OF FACT

Yariv admits factual allegations 1-6 and 8-10 as set forth in the Citation and Notice of Hearing issued in this matter by the Registrar on September 17, 2014:

1. On February 2, 2008, the Registrar issued License No. B.241673-R to Respondent, an Arizona limited liability company.

2. On March 1, 2012, the Registrar suspended Respondent’s license for failure to renew. On June 14, 2012, the Registrar suspended Respondent’s license for lack of bond. On October 23, 2012, the Registrar suspended Respondent’s license until compliance with the terms of an Order issued in Case No. 2011-2990. On March 1, 2013, Respondent’s license expired.

3. On or about September 20, 2013, Pavel and Oksana Gugis Antseliovich (hereinafter “the Antseliovichs”) filed a complaint with the Registrar alleging abandonment by Respondent of its September 9, 2011 contract to remodel the Antseliovichs’ residence located at 9127 N. 68th Place in Paradise Valley, Arizona for $305,464.07. The Antseliovichs have made payments to Respondent in the amount of $91,514.17 towards the remodeling project. Respondent has failed to complete work on the project.

4. Respondent’s July 5, 2011 correspondence with the Antseliovichs does not include Respondent’s license number preceded by the acronym “ROC.”

5. Respondent’s September 9, 2011 contract with the Antseliovichs does not include all the elements required by A.R.S. § 32-1158(B).

6. On or about December 30, 2013, Warren Neugarten, hereinafter “Mr. Neugarten,” filed a complaint with the Registrar alleging abandonment by Respondent of its June 12, 2012 contract to build a new home for Mr. Neugarten located at 4010 East Canyon Court in Paradise Valley, Arizona for $850,000.00. Mr. Neugarten has made payments to Respondent in the amount of $164,762.89 towards the construction project. Respondent has failed to complete work on the project.

8. Respondent’s June 12, 2012 contract with Mr. Neugarten does not include all the elements required by A.R.S. § 32-1158(B).

9. Respondent’s July 19, 2012 Invoice No. 1050 and November 13, 2012 Invoice No. 1052 do not include Respondent’s license number preceded by the acronym “ROC.”

10. Respondent falsely represented to Mr. Neugarten and Metro Phoenix Bank that Respondent was operating under the licenses of another entity, FHR Construction Corporation (hereinafter “FHR”). This deception by Respondent resulted in substantial injury to FHR, who had to defend meritless complaints filed in Maricopa County Superior Court and with the Registrar that Mr. Neugarten filed based on Respondent’s false statements.

The Registrar withdraws factual allegation number 7 in the Citation and Notice of Hearing:

7. Respondent falsely represented to Mr. Neurgarten that its contractor’s license was current when they entered into the contract. This deception by Respondent resulted in substantial injury to Mr. Neurgarten.

CONCLUSIONS OF LAW

1. The Citation and Notice of Hearing charged violations of: A.R.S. § 32-1154(A)(1) (Count 1); A.R.S. § 32-1154(A)(12), namely A.R.S. § 32- 1124(B) (Count 2); A.R.S. § 32-1154(A)(12), namely A.R.S. § 32-1158(B) (Count 3); A.R.S. § 32-1154(A)(1) (Count 4); A.R.S. § 32-1154(A)(6) (Count 5); A.R.S. § 32-1154(A)(6) (Count 6); A.R.S. § 32-1154(A)(17) (Count 7); A.R.S. § 32-1154(A)(15) (Count 8); A.R.S. § 32-1154(A)(12), namely A.R.S. § 32-1124(B) (Count 9); and A.R.S. § 32-1154(A)(12), namely A.R.S. § 32- 1158(B) (Count 10). 2. Yariv admits the violations in Counts 1-4, Counts 6-7, and Counts 9-10. 3. The Registrar dismisses Counts 5 and 8. 4. Yariv agrees to the revocation of License No. B.241673-R of Yariv Homes, LLC and to the imposition of a $500.00 civil penalty in accordance with A.R.S. § 32-1154(F). RECOMMENDED ORDER

In consideration of the settlement agreement above: IT IS RECOMMENDED that License No. B.241673-R of Yariv Homes LLC shall be revoked. IT IS FURTHER RECOMMENDED that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to A.R.S. § 32-1154(F). 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 shall be five (5) days from the date of the certification. Done this day, February 19, 2015.

/s/ M. Douglas Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director Registrar of Contractors

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