ALJDEC decisions subject to certification as final
2022A-06376-NPC-ROC · Registrar of Contractors · 2022-11-02
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
C.A.L.L Construction LLC,
COMPLAINANT
v.
CADB Catalyst Construction Group, LLC
License No. ROC 327037,
RESPONDENT
No. 2022A-06376-NPC-ROC
ADMINISTRATIVE LAW JUDGE
DECISION
HEARING: October 31, 2022
APPEARANCES: Complainant C.A.L.L. Construction LLC was represented by Edward Hermes. Respondent CADB Catalyst Construction Group, LLC was represented by Gabriel M. Hartsell.
ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer
FINDINGS OF FACT
On or about August 1, 2022, Complainant C.A.L.L. Construction LLC submitted a Non-Payment Complaint Form to the Arizona Registrar of Contractors (Registrar) alleging that CA Design Build, LLC had failed to pay Complainant $1,616,601.72 due and owing on a construction project.
On or about September 21, 2022, the Registrar issued a Notice of Hearing on Contested Case naming CADB Catalyst Construction Group, LLC, holder of License No. ROC327037, as the respondent and charging a possible violation or Ariz. Rev. Stat. 32-1154(A)(10).
During opening statements, Complainant’s counsel made it clear that its contract and complaint in this matter was with and against CA Design Build LLC, which did not hold a license from the Registrar.
Upon further questioning, Respondent’s counsel represented that License No. ROC327037 was previously held by CA Design Build LLC, but was transferred to Respondent at some point after the contract in this matter was executed. Respondent’s counsel denied any knowledge that CA Design Build LLC had merely changed its name to CADB Catalyst Construction LLC such that the obligations of CA Design Build LLC were held by Respondent.
Complainant’s counsel further clarified that CA Design Build LLC had brought suit against Complainant in Maricopa County Superior Court regarding the underlying project. Therefore, CA Design Build was an existing entity.
After some discussion, the parties agreed that Complainant did not have a contractual relationship with Respondent and Respondent did not owe Complainant any amount. The parties also agreed that CS Design Build LLC did not hold a license issued by the Registrar.
As such, the parties agreed with the conclusion of the Administrative Law Judge that the matter was not properly before the Office of Administrative Hearings.
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.
The evidence established that Respondent did not owe Complainant any sum of money for materials or services rendered.
Therefore, Complainant failed to establish that Respondent violated A.R.S. § 32-1154(A)(10).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Registrar of Contractors’ Order, Complainant’s complaint be dismissed.
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 will be 40 days from the date of that certification.
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-137160-45720000Done this day, November 2, 2022.
/s/ Tammy L. Eigenheer
Administrative Law Judge
Transmitted electronically or by mail to:
Jeffrey Fleetham, Director
Registrar of Contractors
Gabriel M. Hartsell
Dorsey & Whitney, LLP
[email redacted]
Edward Hermes
Snell & Willmer LLP
[email redacted]
By Miranda Alvarez
Legal Secretary
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