ALJDEC decisions subject to certification as final

2015A-4429-ROC · Registrar of Contractors · 2017-01-06

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Registrar of Contractors,

COMPLAINANT,

-v-

Innovative Design & Construction LLC

License No. CR39.274025-D,

RESPONDENT.

No. 2015A-4429-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: December 29, 2016, at 10:00 a.m.

APPEARANCES: The Registrar of Contractors (“the Registrar”) was represented by Thomas Raine, Assistant Attorney General; Innovative Design & Construction LLC (“Respondent”) failed to appear.

ADMINISTRATIVE LAW JUDGE: Diane Mihalsky

_____________________________________________________________________

FINDINGS OF FACT

Respondent is a limited liability company and holds License No. 274025, which the Registrar issued on September 7, 2011. Amanda Leigh Ehman is the only member listed on the license. Michael Dean Williamson is named as the qualifying party/employee on the license.

On October 25, 2016, the Registrar issued a Citation charging cause to suspend or revoke Respondent’s license under A.R.S. § 32-1154(A)(20) because Respondent “[had] a person named on the license who is named on any other license in this state or in another state which is under suspension or revocation unless the prior revocation was based solely on a violation of this paragraph.”

The Citation explained that Ms. Ehman was also listed on License No. 273809, which the Registrar also had issued to Respondent on September 7, 2011, and which the Registrar had suspended and then revoked for cause as a result of two complaints by subcontractors for non-payment and one complaint by a consumer for poor workmanship.

The Registrar sent the Citation to Respondent’s address of record at the time. Mr. Williamson filed a written answer to the Citation, stating that Ms. Ehman “was removed from this corporation on 7/17/2015.” Mr. Williamson attached to the written answer a document from the Arizona Corporation Commission dated July 17, 2015, showing a manager change from Ms. Ehman to Mr. Williamson.

The Registrar referred the matter to the Office of Administrative Hearings (“OAH”), an independent state agency, for an evidentiary hearing.

On November 2, 2016, Respondent filed with the Registrar a form to change its address of record to 12441 E. Camino Del Garanon, Tucson, Arizona 85747-9729.

On November 29, 2016, pursuant to Mr. Williamson’s request on Respondent’s behalf, the Registrar issued a Notice of Hearing in this matter, setting an evidentiary hearing before OAH on December 29, 2016, at 10:00 a.m. The Registrar sent a copy of the Notice of Rehearing to Respondent at its new address of record on E. Camino Del Garanon.

Respondent’s representative did not request to appear telephonically at the duly noticed hearing or that the hearing be continued. Although the beginning of the duly noticed rehearing was delayed thirty minutes to allow Respondent additional travel time, it did not appear, through a duly authorized member, employee, or attorney, and did not contact OAH to request that the time for the hearing be further delayed. Consequently, Respondent did not present any evidence to defend its License No. 274025.

The Registrar presented the testimony of its employee, Bonny Allan, a Staff Attorney in the Registrar’s Legal Department Manager, and submitted eight exhibits to establish the facts set forth above.

The Registrar submitted a printout from the Arizona Corporation Commission dated December 28, 2016, showing that as of that date, Ms. Ehman was still listed as the only member of Respondent limited liability company, even though Mr. Williamson was listed as a manager.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

The Notice of Hearing that the Registrar mailed to Respondent at its address of record was reasonable and Respondent is deemed to have received the notice of the hearing.

The Registrar bears the burden of proof to establish grounds for suspension or revocation of Respondent’s license by a preponderance of the evidence. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

The Registrar established that Respondent’s License No. 273809 was revoked for cause and that Ms. Ehman is listed on both licenses. Therefore, the Registrar established cause to suspend or revoke Respondent’s license under A.R.S. § 32-1154(A)(20).

Respondent’s failures to remove Ms. Ehman as a member or to attend the duly noticed hearing demonstrate that, at this time, it cannot be regulated.

RECOMMENDED ORDER

In light of the foregoing, it is ordered that on the effective date of the final order in this matter, Respondent Innovative Design & Construction LLC’s License No. CR39.274025-D shall be revoked.

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 five days from the date of that certification.

Done this day, January 6, 2017.

/s/ Diane Mihalsky

Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director

Registrar of Contractors