ALJDEC - Licensing

2022A-10634-NPC-ROC · Registrar of Contractors · 2023-04-04

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

American Refrigeration Supplies, Inc.,

COMPLAINANT,

v.

Refrigerate AZ, LLC

License No. ROC 323155,

RESPONDENT.

No. 2022A-10634-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: March 17, 2023

APPEARANCES: Brad Brown appeared on behalf of Complainant American Refrigeration Supplies, Inc. Respondent Refrigerate AZ, LLC failed to appear.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

FINDINGS OF FACT

Refrigerate AZ, LLC (“Respondent”) is the holder of License No. 323155 issued by the Arizona Registrar of Contractors (“Registrar”).

On or about November 17, 2022, American Refrigeration Supplies, Inc. (“Complainant”), a wholesale supplier, filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $12,095.84 for HVAC equipment and supplies that Respondent purchased on credit from Complainant.

The parties were unable to resolve their differences. The Registrar issued a Citation against Respondent for its alleged violation of A.R.S. § 32-1154(A)(10).

The matter was set for administrative hearing before the Office of Administrative Hearings on March 17, 2023. On the date and at the time set for hearing, and after proper notice, Respondent failed to appear. After a grace period, the matter proceeded to hearing.

Brad Brown, Complainant’s corporate credit manager, testified that Complainant supplied equipment to Respondent from mid-2019 through July 2022. In October 2021, Respondent stopped paying Complainant for the supplies it was purchasing. Complainant continued to allow Respondent to purchase supplies on credit through June 2022.

Mr. Brown testified that Complainant issued invoices to Respondent twice weekly and when those invoices became past due, Mr. Brown called Respondent and was told that “internal issues with the accounting department” were causing non-payment.

On May 3, 2022, Mr. Brown spoke with Drew Hill, Respondent’s representative, who requested a payment plan. Complainant obliged, however, Respondent never made a payment.

Mr. Brown testified that due to Respondent’s non-payment, Respondent’s account was converted to a “Cash on Demand” account and Respondent utilized that method for obtaining supplies until July 18, 2022. Thereafter, Complainant converted Respondent’s account to a “No Sale” status, not permitting Respondent to purchase any equipment/supplies from Complainant, due to Respondent’s failure to pay the past due invoices. At that point, all contact from Respondent ceased.

Mr. Brown testified that Respondent failed to make any payment on the invoices notwithstanding multiple requests to do so.

Respondent failed to appear for hearing, and therefore, did not present any controverting evidence.

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 this matter is by a preponderance of the evidence.

A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.”

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 owes a total of $12,095.84 for the HVAC equipment/supplies provided by Complainant.

Respondent failed to appear, and as such, failed to establish by a preponderance of the evidence that it lacked the ability to pay Complainant for the HVAC equipment/supplies provided by Complainant.

Therefore, Complainant established that Respondent violated A.R.S. § 32-1154(A)(10) by failing to pay Complainant $12,095.84 for materials rendered in connection with Respondent’s contracting business.

Based upon Respondent’s violation of the provisions of A.R.S. § 32-1154(A)(10), grounds exist to impose discipline against Respondent’s license.

RECOMMENDed order

Based on the foregoing, it is recommended that the Registrar suspend Respondent’s License No. 323155 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $12,095.84 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $12,095.84 in certified funds, the Registrar may close the Complaint in Case No. 2022-10634.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

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 forty (40) days from the date of that certification.

Done this day, April 4, 2023.

/s/ Sondra J. Vanella

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Martín Quezada, Director

Registrar of Contractors

[email redacted]

Robert S. Wolkin, Esq.

[email redacted]

American Refrigeration Supplies, Inc.

[email redacted]

Refrigerate AZ, LLC

[email redacted]

By: OAH Staff