ALJDEC decisions subject to certification as final
2022A-02232-CHC-ROC · Registrar of Contractors · 2022-09-19
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Joshua J Thomas
COMPLAINANT,
v.
Anchor Home Renovation LLC.
License No. ROC 319452,
RESPONDENT.
No. 2022A-02232-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: August 29, 2022
APPEARANCES: Complainant Joshua J. Thomas appeared on behalf of himself. Jose Palacio appeared on behalf of Respondent Anchor Home Renovation, LLC.
ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson
_____________________________________________________________________
FINDINGS OF FACT
1. Respondent Anchor Home Renovation, LLC (Anchor) holds license number 319452 issued by the Arizona Registrar of Contractors (ROC).
2. Jose Palacio is the qualifying party for Anchor.
3. On or about September 30, 2020, Complainant Joshua J. Thomas entered into a residential remodeling contract with Anchor for the amount of $66,690.
4. Mr. Thomas paid Anchor $35,000 for the project.
5. On or about July 1, 2021, Anchor started work.
6. On or about October 31, 2021, Anchor stopped work.
7. The ROC received a complaint from Mr. Thomas alleging poor workmanship and abandonment on the part of Anchor and the complaint was assigned to ROC Investigator Lisa Melton on March 20, 2022.
8. On May 12, 2022, Investigator Melton conducted a job-site inspection.
9. On May 23, 2022, the ROC issued a Directive to Anchor. Through the Directive, the ROC directed Anchor to remedy complaint items 6 and 7 by appropriate means. The May 23, 2022 Directive provided, in relevant part, as follows:
..........................................................
After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on June 23, 2022.
DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:
Compliance Item 6: Broken wall from concrete company; Investigator’s Observation: Respondent acknowledge responsibility for this damage to a small portion of existing wall. Respondent should correct by appropriate methods. Governing Rule: ARS §32-1154 (A) (3), Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item 7: Lack of completed work on addition; Investigator’s Observation: Work stopped in October 2021. Respondent stated that this was due to an increase in prices for materials, specifically wood. Respondent stated that they had not issued a change order to Complainant for increased prices. Respondent should complete the work for which they bid/contracted per original contract agreement, properly executed change orders, and local building codes. Governing Rule: A.R.S. §32-1154 (A) (1), Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.
................................................................
10. Anchor failed to comply with the by the due date.
11. On June 27, 2022, the ROC issued a Citation against Anchor’s license alleging that Anchor had violated Arizona Revised Statutes (A.R.S.) §§ 32-1154(A)(1), (3), (22), and Arizona Administrative Code (A.A.C.) R4-9-108(a).
12. Anchor filed a timely answer to the Citation.
13. The matter was referred to the Office of Administrative Hearings for an evidentiary hearing.
14. A hearing was held on August 29, 2022.
15. At hearing, Mr. Thomas testified on behalf of himself. Investigator Melton testified regarding her investigation of the complaint and the issuance of the Directive.
Mr. Palacio testified on behalf of Anchor.
16. Mr. Thomas explained that Anchor failed to complete the project and performed poor work. Mr. Palacio testified to the effect that work was delayed to the COVID-19 pandemic. Mr. Palacio stated that the price in parts increased but
Mr. Thomas was not willing to pay for the increased price.
17. Investigator Melton observed during the job-site inspection that Anchor had not completed the project and had performed poor work. Investigator Melton explained that Anchor had not issued any change orders to Mr. Thomas.
18. Administrative notice is taken of Respondent’s prior License record on September 19, 2022. Such prior License record reflects that Respondent’s license number 319452 was first issued on April 30, 2018, and is suspended. Such prior License record also reflects that there is one open complaint against Respondent’s license. Such prior License record also reflects that three complaints against Respondent’s license were resolved/settled/withdrawn.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction. See Ariz. Rev. Stat. section 32-1101 et seq.
Complainant bears the burden of proof to establish Respondent’s statutory violation by a preponderance of the evidence. See Ariz. Rev. Stat. section
41-1092.07(G)(2); A.A.C. R2-19-119(A) and A.A.C. R2-19-119(B)(1); see also Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). “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 section 5 (1960).
3. The suspended status of Respondent’s license does not deprive
Complainant of his right to prosecute his complaint against Respondent or prevent the Registrar from determining the merits of Complainant’s complaint. This matter lies within the Registrar’s jurisdiction.
4. The undisputed evidence established that Arizona Restoration abandoned the contract, which is a violation of Ariz. Rev. Stat. section 32-1154(A)(1).
5. The preponderance of the evidence shows that Respondent did not perform the work in a professional and workmanlike manner in violation of Ariz. Rev. Stat. section 32-1154(A)(3), namely A.A.C. R4-9-108(a).
6. The preponderance of the evidence shows that Respondent failed to
correct the items listed in the ROC’s Directive without valid justification, which is a violation of Ariz. Rev. Stat. section 32-1154(A)(22).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar suspend License No. 319452 of Anchor Home Renovation, LLC for three calendar days.
It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to Ariz. Rev. Stat. section 32-1154(E).
It is further recommended that no future license shall be issued to any entity consisting of persons associated with Respondent, as defined in Ariz. Rev. Stat. section 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.
Done this day, September 19, 2022.
/s/ Velva Moses-Thompson
Administrative Law Judge
Transmitted electronically to:
Jeffrey Fleetham, Director
Registrar of Contractors
By Miranda Alvarez
Legal Secretary