ALJDEC decisions subject to certification as final
2017A-426-NPC-ROC · Registrar of Contractors · 2017-05-23
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
AZ Labor Force Dba Labor Systems,
COMPLAINANT,
v.
Santa Fe Acoustics, LLC,
License No: 304114
RESPONDENT.
No. 2017A-426-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: May 4, 2017
APPEARANCES: Ivan Santacruz appeared on behalf of Complainant AZ Labor Force, Inc. No one appeared on behalf of Respondent Santa Fe Acoustics, LLC.
ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson
_____________________________________________________________________
FINDINGS OF FACT
On March 17, 2017, the Registrar of Contractors, (hereinafter “Registrar”), issued a Notice of Hearing setting the above-captioned matter for hearing at 8:30 a.m. on May 4, 2017, at the Office of Administrative Hearings in Phoenix, Arizona.
No representative for Respondent Santa Fe Acoustics LLC, (hereinafter “Santa Fe Acoustics”), appeared at the scheduled time and the matter was convened in its absence at about 8:50 a.m.
Santa Fe Acoustics holds license number 304114 issued by the Registrar.
Ivan Santacruz is an employee of Complainant AZ Labor Force Dba Labor Systems,(hereinafter “AZ Labor”).
On or about April 11, 2016, AZ Labor entered a contract with Santa Fe Acoustics under which AZ Labor was to provide temporary labor for Santa Fe Acoustics. See Exhibit C.
On or about August 12, 2016, AZ Labor submitted two invoices to Santa Fe Acoustics for work performed by its employees for Santa Fe Acoustics in August of 2016. The total amount of the invoices was $3,341.56.
On January 23, 2017, the Registrar received a complaint filed by AZ Labor against Santa Fe Acoustics alleging that Santa Fe Acoustics failed to pay its bills in the total amount of $3,341.56.
On February 14, 2017, the Registrar issued a citation alleging that Santa Fe Acoustics may have violated A.R.S. § 32-1154(A)(10).
On March 6, 2017, Santa Fe Acoustics informed the Registrar via electronic mail that it was unsure how AZ Labor arrived at its “inflated amounts.”
At hearing, Ivan Santacruz testified that Santa Fe Acoustics failed to pay AZ Labor after it provided workers to Santa Fe Acoustics under the contract.
I find Ivan Santacruz’s testimony to be credible.
AZ Labor was owed $3,341.56 at the time that the complaint was filed.
CONCLUSIONS OF LAW
A party asserting a claim, right, or entitlement bears the burden of proof; a party asserting an affirmative defense has the burden of establishing the affirmative defense. The standard of proof on all issues in this matter is that of a preponderance of the evidence. A.A.C. § R2-19-119.
“At a hearing on an agency action to suspend, revoke, terminate or modify on its own initiative material conditions of a license or permit, the agency has the burden of persuasion.” A.R.S. § 41-1092.07(G)(2).
A preponderance of the evidence is:
The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.
Black’s Law Dictionary 1373 (10th ed. 2014).
Statutes should be interpreted to provide a fair and sensible result. Gutierrez v. Industrial Commission of Arizona, 226 Ariz. 395, 249 P.3d 1095 (2011)(citation omitted); State v. McFall, 103 Ariz. 234, 238, 439 P.2d 805, 809 (1968) ("Courts will not place an absurd and unreasonable construction on statutes.").
“Statutes shall be liberally construed to effect their objects and to promote justice.” A.R.S. § 1-211(B).
The purpose of the Registrar’s licensing statutes is to protect the public from unscrupulous, unqualified, and financially irresponsible contractors. See Aesthetic Property Maintenance v. Capital Indem. Corp., 183 Ariz. 74, 900 P. 2d 1210 (1995).
A.R.S. § 32-1154(A) provides that:
The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions: .... 10. Failure by a licensee or agent or official of a licensee to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee's operations as a contractor when the licensee has the capacity to pay or, if the licensee lacks the capacity to pay, when the licensee has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.
8. A.R.S. § 32-1154(A)(10) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license “[f]ailure by a licensee . . . to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor when the licensee has the capacity to pay or, if the licensee lacks the capacity to pay, when the licensee has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.”
9. Payment for “[s]ervices rendered in connection with the licensee’s operations as a contractor” does not include interest, finance charges, lien charges, or other charges that are based solely on contract terms.
10. The preponderance of the evidence shows that Santa Fe Acoustics violated A.R.S. § 32-1154(A)(10) as alleged.
ORDER
IT IS ORDERED that on the effective date of the final order in this matter, Santa Fe Acoustics LLC’s license number 304114 number is revoked unless the Registrar receives and accepts written verification that Santa Fe Acoustics, LLC has paid to AZ Labor Force Dba Labor Systems $3,341.56 in certified funds.
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 is forty days after the date of that certification.
Done this day, May 23, 2017.
/s/ Velva Moses-Thompson
Administrative Law Judge
Transmitted electronically to:
Jeffrey Fleetham, Director
Registrar of Contractors