FINACT2018-2686-ROC-FinalAgencyAction-6610.pdf
2018A-2686-RFA-ROC · Registrar of Contractors · 2019-11-14
REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA
Emily Groh, Case No. 2018-2686
COMPLAINANT, Docket No. 2018A-2686-RFA-ROC v.
A V S Framing and Drywall LLC FINAL ADMINISTRATIVE DECISION AND License No. ROC 234048, ROC 234047, ORDER RESPONDENT.
Under A.R.S. § 41-1092.08(B), the Registrar may review and accept, modify, or reject an
administrative law judge’s written decision. If the Registrar modifies or rejects that decision, then the Registrar
must provide written justification setting forth the reasons for the modification or rejection of each finding of
fact or conclusion of law.
MODIFICATION AND WRITTEN JUSTIFICATION
In this case, a hearing was held and the administrative law judge issued a written decision. See
Administrative Law Judge Decision, attached. The Registrar reviewed that decision and modifies it as set forth
below.
1. Complainant proceeded against Respondent’s bond as required under A.R.S. § 32-
1133.01(F).
The Administrative Law Judge noted that “A.R.S. § 32-1133.01(F) provides that, in an administrative
claim for a payout from the Fund like the one Complainant makes here, ‘[a] claimant to the residential
contractors’ recovery fund pursuant to this section must show that the claimant has proceeded against any
existing bo[n]d covering the residential contractor.’” ALJ Dec. 15:11-13. The Administrative Law Judge found
that “Respondent established that Complainant failed to submit a Proof of Claim to RLI, despite being advised
to do so, and that $4,250.00 would have been available from Respondent’s bond.” ALJ Dec. 15: 13-16. The
Administrative Law Judge therefore recommended that the $4,250.00 available from the bond be deducted
of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 8/19 from the Recovery Fund payout amount. ALJ Dec. 15 n.39. Based on the record in this case, that
recommendation must be rejected.
Complainant’s Recovery Fund claim included two letters from RLI. The first, dated September 5,
2018, acknowledged RLI’s receipt of Complainant’s claim letter, and requested that Complainant submit a
Proof of Claim. While it is unclear whether Complainant ever submitted a Proof of Claim, in the second letter,
dated September 21, 2018, RLI denied Complainant’s claim against the bond. Therefore, Complainant has
complied with A.R.S. § 32-1133.01(F). Accordingly, the amount of the bond, $4,250.00, may not be deducted
from Complainant’s damages.
2. The cost of the window upgrade should be deducted from, not added to, the award amount.
The Administrative Law Judge found that “Respondent established that it spent $1,576.58 to upgrade
the windows on Complainant’s project at her request.” ALJ Dec. 15:8-9. However, rather than deducting this
amount from the award, the Administrative Law Judge added it to the amount to be awarded. See ALJ Dec. 15
n.39 (“…+ $1,576.58 (windows upgrade)…”). Because this was a cost incurred by Respondent, for which it
was not reimbursed by Complainant, this amount should properly be deducted from the total award calculation.
3. Several disallowed item amounts were miscalculated.
The Administrative Law Judge found that S&R’s bid included several items that were not included in
Respondent’s bid or contract, “including the gutters ($800.00), [and] master bathroom cabinets ($790.00)…”
among other items. ALJ Dec. 15:3-6. This appears to misread the columns on the itemized bid from S&R. The
amounts that appear in S&R’s bid are $850.00 for the gutters, and $800.00 for the master bathroom cabinets.
Therefore, the award calculation must be modified accordingly.
CONCLUSION AND ORDER
The Registrar hereby modifies the Recommended Order of the Administrative Law Judge Decision by:
• On page 6, lines 26-27, replace “$800.00” with “$850.00”, and replace “$790.00” with
“$800.00”;
• On page 15, lines 3-6, replace “$800.00” with “$850.00”, and replace “$790.00” with
“$800.00”;
• Replace page 15, lines 18-23 and footnote 39, with:
of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 8/19 o “IT IS ORDERED that on the effective date of the final order in this matter, the
Residential Contractor’s Recovery Fund shall pay $16,969.09 to Complainant Emily
Groh. This amount is calculated as follows: $33,055.67 (S&R’s low bid) - $850.00
(installing gutters) - $800.00 (master bathroom cabinets) - $1,920.00 (granite tops) -
$10,940.00 (unpaid balance on original contract) - $1,576.58 (windows upgrade) =
$16,969.09.
o IT IS FURTHER ORDERED that under A.R.S. § 32-1139(B), the Registrar shall charge
$16,969.09, plus interest at a rate of ten percent a year, to Respondent AVS Framing and
Drywall LLC’s License Nos. ROC 234047 and ROC 234048.”
The Registrar accepts the remainder of the Administrative Law Judge Decision, which becomes
effective on December 18, 2019.
FINAL NOTES
On page 1, line 23, replace “2017” with “2019.” On page 5, line 11, replace “October 1, 2018” with
“September 29, 2018.” On page 6, line 5, replace “2019” with “2018.” On page 11, line 6, replace “$4,500.00”
with “$4,250.00.”
Dated November 8, 2019.
By: /s/ Joseph Citelli Joseph Citelli Chief Counsel Chief of Legal Department and Recovery Fund Copy mailed via USPS First Class mail November 8, 2019 to: Respondent A V S Framing and Drywall LLC 1722 E Cheery Lynn Rd Phoenix, AZ 85016
Complainant Emily Groh 5131 N 6th St Phoenix, AZ 85012 Copy sent electronically this same date to:
of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 8/19 Registrar’s Counsel John Tellier , Assistant Attorney General Office of Administrative Hearings Diane Mihalsky , Administrative Law Judge
Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar
Case No. 2018-2686 / fh
of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 8/19