ALJDEC decisions subject to certification as final

2022A-01958-NPC-ROC · Registrar of Contractors · 2022-08-01

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

All Arizona Heating and Cooling LLC,

COMPLAINANT

Ranger National Construction Group Inc.,

License No. ROC 236227,

RESPONDENT

No. 2022A-01958-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: July 12, 2022

APPEARANCES: John Norris, Owner and Qualifying Party, appeared on behalf of Complainant All Arizona Heating and Cooling LLC. John McFadden, Project Manager, appeared on behalf of Respondent Ranger National Construction Group Inc.

ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer

_____________________________________________________________________

FINDINGS OF FACT

Ranger National Construction Group Inc. (Respondent) is the holder of License No. 236227 issued by the Registrar of Contractors (Registrar).

On or about February 28, 2022, All Arizona Heating and Cooling LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $7,793.09 for Invoice #1106.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation for Alleged Violation of A.R.S. § 32-1154(A)(10).

Mr. Norris, Owner and Qualifying Party, testified as to the circumstances surrounding the complaint. Mr. Norris was uncertain of the exact amount Complainant was alleging it was owed by Respondent. At various times, Mr. Norris asserted Respondent owed “approximately” $8,000.00, $6,200.00, and $11,903.01. Eventually, Mr. Norris settled on $5,403.01 being owed on the contract. Mr. Norris admitted that his calculations included payments for work Complainant did not perform on the project. Because the owner cancelled the project, Respondent cancelled the contract with Complainant. Mr. Norris argued that because Complainant purchased equipment and materials for the project prior to the cancellation, Complainant should be paid for that equipment. Mr. Norris admitted that Complainant had possession of said equipment at the time of the hearing.

Mr. McFadden, Project Manager, testified that Complainant failed to provide any evidence to support its asserted balance owed including for the equipment Complainant purportedly purchased for the project. Mr. McFadden stated that every other subcontractor that had already purchased equipment when the project was cancelled by the owner, left the equipment in the possession of the owner so, when the project was able to continue, the owner could use the equipment. Mr. McFadden noted that it was not reasonable for a subcontractor to expect payment for equipment that it still had in its possession.

Respondent did not assert that it lacked the capacity to pay the amount Complainant asserted was due.

CONCLUSIONS OF LAW

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 A.A.C. R2-19-119.

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).

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 or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

Complainant failed to establish that Respondent owed Complainant any sum of money on the contract, much less, a specific amount.

Therefore, Complainant failed establish that Respondent violated A.R.S. § 32-1154(A)(10) by failing to pay Complainant for services or materials rendered in connection with Respondent’s contracting business.

RECOMMENDed order

It is recommended that on the effective date of the Registrar’s final order in this matter, the Registrar close Complainant All Arizona Heating and Cooling LLC’s complaint in Case No. 2022-01958 against Respondent Ranger National Construction Group Inc.’s License No. 236227.

In the event of certification of this Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be 40 days from the date of the certification.

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-137160-45720000Done this day, August 1, 2022.

/s/ Tammy L. Eigenheer

Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director

Registrar of Contractors

By Miranda Alvarez

Legal Secretary -54864001

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