FINACT2019A-04268-LDA-ROC-FinalAgencyAction-6700.pdf

2019A-04268-LDA-ROC · Registrar of Contractors · 2019-12-19

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2019-04268 COMPLAINANT, Docket No. 2019A-04268-LDA-ROC v. Light Em Up Cover Em Up Inc., FINAL ADMINISTRATIVE License No. ROC 230451, DECISION AND 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. REGISTRAR’S ACCEPTANCE 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 accepts it. CONCLUSION AND ORDER Because the Registrar has accepted the administrative law judge’s decision, that decision is the final administrative decision in this case and becomes effective on January 27, 2020. FINAL NOTE On page 2 line 25, delete “and” between “Mr. Eden” and “submitted.” On page 3 line 1, insert “was” between “he” and “not.”

of 2 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

Dated December 18, 2019. By: /s/ Joseph Citelli Joseph Citelli Chief Counsel Chief of Legal Department and Recovery Fund Copy mailed via USPS First Class mail December 18, 2019 to: Respondent Light Em Up Cover Em Up Inc. 1151 E. Deuce of Clubs Ste A Show Low, AZ 85901 Copy sent electronically this same date to: Registrar’s Counsel John Tellier, Assistant Attorney General Office of Administrative Hearings Velva Moses-Thompson, Administrative Law Judge Respondent at email address on record with the Registrar Case No. 2019-04268 / VE

of 2 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 RECEIVED 11.26.2019 ROC LEGAL

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Arizona Registrar of Contractors, No. 2019A-04268-LDA-ROC COMPLAINANT, v. ADMINISTRATIVE LAW JUDGE DECISION Light Em Up Cover Em Up, Inc., ROC License: ROC 230451, RESPONDENT.

HEARING: November 6, 2019 APPEARANCES: Jace Frank Eden appeared on behalf of Respondent Light Em Up Cover Em Up, Inc. Assistant Attorney General Michael Raine appeared on behalf of the Arizona Registrar of Contractors. ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson _____________________________________________________________________ FINDINGS OF FACT Background 1. Jace Frank Eden is listed as the officer and qualifying party on License No. 230451. 2. In August of 2007, Mr. Eden agreed to pay other subcontractors in a matter related to a contract involving BK Northern Express Restaurants, Inc. (BK), in exchange for an individual named CJ agreeing to pay V-Mountain Construction. See Respondent’s Exhibits 3 and 4. 3. On or about July 9, 2010, Mr. Eden pled guilty to Stalking, a class five felony, and was sentenced to 3 years of probation. 4. On September 1, 2011, Mr. Eden pled guilty to Sexual Abuse, a class five

felony. Mr. Eden also pled guilty to Aggravated DUI, a class four felony. The conviction

for Sexual Abuse constituted a violation of Mr. Eden’s parole.

5. In November of 2011, Mr. Eden filed for chapter 11 bankruptcy on behalf

of the Eden Company (Eden). See Respondent’s Exhibit 15, pg. 2. Mr. Eden was the

owner of Eden. See id. 6. In December of 2011, Judge John Lamb of the Superior Court of the Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 RECEIVED 11.26.2019 ROC LEGAL

State of Arizona issued final judgment against Eden in a lawsuit filed by BK. See Respondent’s Exhibit 19. A judgment in the amount of $19,000 was ordered against Eden for failure to pay V Mountain Construction. See id. 7. On June 13, 2012, the bankruptcy case filed on behalf of Eden was converted to Chapter 7. See Respondent’s Exhibit 15, pg. 2. 8. The bankruptcy case lasted approximately 32 months. See Respondent’s Exhibit 15, pg. 2. 9. On February 6, 2015, the bankruptcy trustee issued a report which showed that a debt to V Mountain was discharged in the amount of $46, 116.72. See Respondent’s Exhibit, pgs. 2 – 7. A debt to Ray Brothers Granite in the amount of $6,151 was also discharged. 10. On April 5, 2012, Mr. Eden was sentenced to five years in prison for the September 1, 2011 Sexual Abuse conviction. 11. On April 5, 2012, Mr. Eden was convicted of DUI in Navajo County Superior Court, (CR2009-0960). 12. On April 5, 2012, Mr. Eden was convicted of Aggravated DUI, a class 4 felony, in Navajo County Superior Court, (CR2009-0960). 13. On April 29, 2016. Mr. Eden was released from prison. Mr. Eden was ordered parole for 1 day for every seven days served. 14. On February 1, 2017, Mr. Eden was released from parole. See Respondent’s Exhibit 2. 15. On or about June 24, 2019, Jace Frank Eden filed an application to reinstate License No. 230451 issued by the Registrar of Contractors, (Registrar). 16. Mr. Eden has appealed all of his convictions. 17. Mr. Eden filed a motion for to require DNA testing for his sexual abuse conviction. Mr. Eden and submitted DNA swabs to the Sho Low Police Department. See Respondent’s Exhibit 10. The motion was denied. 18. Mr. Eden also applied for post-conviction relief. Testimony of Tracy Mulac 19. Tracy Mulac is a business owner in Sho Low, Arizona. Mr. Eden was referred to Ms. Mulac by other business owners in Sho Low. Ms. Mulac solicited RECEIVED 11.26.2019 ROC LEGAL

Mr. Eden’s services, but Mr. Eden refused to complete the work because he not licensed. 20. Ms. Mulac testified to the effect that she was initially concerned about Mr. Eden’s sexual abuse conviction. Ms. Mulac explained that she read the police report and did not find any information about sexual abuse. Ms. Mulac asserted that the victim did not submit to DNA testing and that Mr. Eden took a plea deal for five years of imprisonment instead of fifteen. Ms. Mulac stated that Mr. Eden is very well known and has worked for NASA. Ms. Mulac also stated that Mr. Eden is very religious and holds a masters degree in engineering. It is Ms. Mulac’s belief that it takes longer for an individual to obtain a masters in engineering than a law degree. Testimony of Steve Miller 21. Steve Miller is a Customer Fields Supervisor for Clayton Manufactured Homes (Clayton). Mr. Miller is one of the two individuals that hired Mr. Eden. Mr. Eden has worked for Clayton for 1 ½ years. Mr. Eden has worked on 20-30 homes. Some customers have requested that Mr. Eden return to their home. Mr. Miller does not know whether Clayton is licensed with the Registrar. Mr. Miller believed that Mr. Eden had done “quite well”. Clayton does not notify homeowners of the criminal background of its employees. Testimony of Chris Hudson 22. Chris Hudson is an employee of Champion Homes. Mr. Hudson explained that Mr. Eden works for Champion Homes, and for the factory from which Champion Homes purchases parts. For the most part, Mr. Hudson has received positive feedback from homeowners regarding Mr. Eden’s work. Mr. Hudson has received no complaints regarding personal character issues. 23. Mr. Hudson was aware of Mr. Eden’s criminal background before he hired him. Mr. Hudson stated that he obtained Mr. Eden’s word regarding what he would do and hired Mr. Eden based on his gut. Mr. Hudson expressed that he “took a leap of faith.”

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Testimony of Jace Eden 24. Mr. Eden testified that he attends bible study three times a week and consumes alcohol. Mr. Eden credibly testified that he has not undergone mental health counseling or alcoholics anonymous. Mr. Eden testified that he no longer drives drunk. 25. Mr. Eden denied stalking or sexually abusing anyone. Mr. Eden asserted that his lawyer advised him to plead guilty to the stalking and sexual abuse charges and to apply for post-conviction relief. 26. With regard to the stalking conviction, Mr. Eden explained that he owned a restaurant with a female partner and that she and her boyfriend wanted him out of the business. Mr. Eden alleged that he was falsely accused of stalking his female partner’s girlfriend. 27. With regard to the sexual abuse conviction, Mr. Eden stated that he was told to escort a woman out of a restaurant. Mr. Eden testified to the effect that the woman’s breast was exposed, but that he never touched the woman inappropriately. 28. Mr. Eden explained that after he lost his contractor’s license, he became drunk and drove while under the influence. Mr. Eden explained that every two years it seemed that he was stopped by police for driving while drunk. Mr. Eden explained that he would have couple of glasses of wine with his meal after work at the restaurant. 30. Mr. Eden has not undergone mental health counseling or attended alcoholic anonymous. 31. Mr. Eden completed his parole in ADC# 246262 on February 1, 2017. See Respondent’s Exhibit 2. 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 Arizona Administrative Code (A.A.C.) R2-19-119.1

A.A.C. R2-19-119 provides as follows:

A. Standard of proof. Unless otherwise provided by law, the standard of proof is a preponderance of the evidence.

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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. Arizona Revised Statutes (A.R.S.) §32-1122(C) provides in pertinent part that to obtain a contractor’s license, a person shall be of good character and reputation. Lack of good character and reputation may be established by showing that the person has committed any act which is grounds for suspension or revocation of a license. 4. Mr. Eden was convicted of two class five felonies, Sexual Abuse and Stalking. Mr. Eden was convicted twice of Aggravated DUI, a class four felony. Although Mr. Eden provided evidence that he has appealed his convictions, Mr. Eden provided no evidence that was exonerated. 5. The Registrar’s concern in this case is legitimate and well-founded. A person with a criminal record must be given close scrutiny and careful consideration when he applies for a professional license. Once good character is shown as absent, it is not automatically regained by the mere passage of time. The concern of the Registrar is essential and legitimate in light of Mr. Eden’s past convictions for Sexual Abuse, Stalking and Aggravated DUIs. 6. The conviction of multiple crimes is not a permanent bar to being licensed. However, Mr. Eden has the burden of proving by the preponderance of the evidence that he has resolved the issues that led to the commission of the Stalking, Sexual Abuse and DUI convictions to establish that he has sufficient good character and reputation to satisfy the statutory requirement for licensure as a contractor. 7. The issue of what constitutes good character or a lack thereof is nebulous at best. Former United States Supreme Court Justice Frankfurter noted:

B. Burden of proof. Unless otherwise provided by law: 1. The party asserting a claim, right, or entitlement has the burden of proof;

2. A party asserting an affirmative defense has the burden of establishing the affirmative defense; and

3. The proponent of a motion shall establish the grounds to support the motion.

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No doubt satisfaction of the requirement of moral character involves an exercise of delicate judgment on the part of those who reach a conclusion, having heard and seen the applicant . . . , a judgment of which it may be said as it was of "many honest and sensible judgments" in a different context that it expresses "an intuition of experience which outruns analysis and sums up many unnamed and tangled impressions; impressions which may lie beneath consciousness without losing their worth." . . . 2 Mr. Eden has been convicted of four felonies and has been out of prison for slightly more than two years. The time between when he committed his first criminal offense and when he was released was more than six years. Although Mr. Eden is more mature, he did not testify about specific changes that he has made in his life that make future criminal conduct more unlikely. 8. “[T]he Registrar is charged with the overall responsibility of protecting the welfare of the public dealing with persons engaged in the building contracting vocations and afford the public protection against incompetent, inexperienced, unlawful and fraudulent acts of building contractors.”3 9. Grounds exist under A.R.S. §§ 32-1122(C) and 32-1154(A)(7) and (20) to deny Light Em Up Cover Em Up Inc., ROC License: ROC 230451. Mr. Eden offered testimony that he has received no complaints from customers in the last two years. However, that evidence does not establish that Mr. Eden has taken steps toward rehabilitation. At this time, Mr. Eden did not establish that he is sufficiently rehabilitated to be granted a license or that the Registrar abused its discretion when it denied Light Em Up’s application. RECOMMENDED ORDER Based on the foregoing, it is recommended that on the effective date of the Registrar’s order, the Registrar affirm the decision to deny Light Em Up Cover Em Up, Inc.’s application to reinstate its contractor’s license.

2 Schware v. Board of Bar Examiners of the State of New Mexico, 353 U.S. 232, 248, 77 S. Ct. 752, 761

(1957) (citation omitted; concurring opinion). 3 Burrows v. Taylor, 129 Ariz. 212, 214, 630 P.2d 35, 37 (Ct. App. 1981); see also Laws 1985, Ch. 334, §

1 (“The goals and objectives of the registrar of contractors are to protect the public health, safety and welfare by licensing, bonding and regulating contractors engaged in residential construction . . . .”). RECEIVED 11.26.2019 ROC LEGAL

Done this day, November 26, 2019.

/s/ Velva Moses-Thompson Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director Registrar of Contractors