ALJDEC - Licensing
2022A-10668-CHC-ROC · Registrar of Contractors · 2024-06-12
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Lilia Erlandson,
COMPLAINANT
v.
Max Build LLC
License No. ROC 330073,
RESPONDENT
No. 2022A-10668-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: May 28, 2024
APPEARANCES: Complainant Lilia Erlandson appeared via Google Meet on her own behalf. Registrar of Contractors Investigator Steven Avila appeared via Google Meet.
ADMINISTRATIVE LAW JUDGE: Adam D. Stone
EXHIBITS ADMITTED INTO EVIDENCE:
_____________________________________________________________________
FINDINGS OF FACT
Max Build LLC. (Respondent) is the holder of License No. 330073 issued by the Arizona Registrar of Contractors (Registrar).
On or about April 1, 2022, Lilia Erlandson (Complainant) agreed to have Respondent remodel her home in Mesa, Arizona. The contracted amount was $35,000.00, and Complainant paid the same on or about April 12, 2024.
On or about November 18, 2022, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to project.
The Registrar assigned the complaint to Investigator Steven Avila. The jobsite inspection was performed on January 26, 2023.
Investigator Avila then issued a Written Directive on or about February 20, 2023. Next, Investigator Avila performed an Addendum Jobsite Inspection on June 7, 2023, and issued a new Written Directive to Respondent dated June 12, 2023, that provided in pertinent 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 28, 2023.
. . .
DIRECTIVE REQUIREMENTS
You are directed to remedy the following violations by the appropriate means:
Compliance Item: 2 - Shiplap improperly installed buckling and poorly painted missing, caulking
Investigator’s Observation: At the time of the inspection the shiplap in both the living and kitchen area contained nail holes that were not properly filled and painted. Both areas contained paint issues such as drips and irregular patterns. Shiplap in the kitchen area had movement present when pressure was applied. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 3 - Trim missing from front door.
Investigator’s Observation: At the time of the inspection the front door remained in an unfinished state with trim missing. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 4 - Garage door missing.
Investigator’s Observation: Complainant provided a list of items to be completed by the respondent that contained the garage door in question. At the time of the inspection the respondent stated that the garage door has not been changed. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 5 - Master bedroom door, not painted.
Investigator’s Observation: At the time of the inspection the master bedroom door has not been painted. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 6 - Linen cabinet for guest bath missing.
Investigator’s Observation: At the time of the inspection the linen cabinet had not been installed in the guest bath. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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 - Baseboards missing in guest bath.
Investigator’s Observation: At the time of the inspection there was an unfinished area of baseboards in the area that is to be completed with a linen cabinet. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 8 - Countertop not properly installed in guest bath.
Investigator’s Observation: At the time of the inspection there was a portion of back splash that was not adhered to the wall. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 9 - Trim, missing around kitchen, cabinets and windows.
Investigator’s Observation: At the time of the inspection there was missing trim around the kitchen window. There were also areas of finish trim missing adjacent to the cabinets and kick board. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 10 - Broken pantry shelves, and several shelves missing in kitchen.
Investigator’s Observation: At the time of the inspection there were multiple cabinet areas that were missing shelving. One area of pantry contained a cracked frame. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 12 - Hall bath missing cabinet pulls.
Investigator’s Observation: At the time of the inspection the hall bath vanity did not contain any cabinet hardware. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 13 - All cabinet doors in house missing finger pulls.
Investigator’s Observation: At the time of the inspection the cabinet/ closet doors did not contain hardware. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 14 - Electrical outlet missing on kitchen island.
Investigator’s Observation: At the time of the inspection the electrical outlets in question remained unfinished. Allegation is verified. Respondent shall correct
Governing Rule: 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: 17 - Master bathroom vanity, not installed.
Investigator’s Observation: At the time of the inspection the master bath vanity was not installed. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 18 - Master bathroom lighting, not installed.
Investigator’s Observation: At the time of the inspection the master bath lighting was not installed. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 19 - Master bathroom, electrical not complete.
Investigator’s Observation: At the time of the inspection the master bath electrical remained in an incomplete status. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 20 - Master bath exhaust fan, not installed,
Investigator’s Observation: At the time of the inspection the master bath exhaust fans remained in an incomplete status. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 21 - Master bath countertop, not installed.
Investigator’s Observation: At the time of the inspection the master bath counter top was not installed. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 22 - Master bath shiplap not installed
Investigator’s Observation: At the time of the inspection no shiplap was installed in the master bath. Allegation is verified. Respondent shall correct by the appropriate means.
Governing Rule: 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: 23 - Flooring contains peaking and cupping.
Investigator’s Observation: At the time of the inspection there were multiple locations in which issues could be seen with the laminate flooring installed by the respondent. There were areas of peaking, cupping and lippage throughout the kitchen and dining areas. Allegation is verified. Respondent shall determine the cause of the flooring issues and remedy as needed.
Governing Rule: 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...
(All errors contained in the original)
On July 12, 2023, Investigator Avila conducted a Compliance Jobsite Inspection. Investigator Avila noted the following in pertinent part:
Compliance Jobsite General Notes:
Present at the inspection:
Lilia Erlandson – Homeowner
Austin Erlandson – Homeowner
Investigator Avila – Registrar of Contractors
Respondent was not present for either compliance inspection.
An initial Compliance inspection was performed on 5/11/2023. Subsequently an addendum inspection was requested to inspect the cupping and peaking of the laminate flooring that was installed by the respondent. The initial inspection did address the floor but the allegation pertained to the lack of expansion gaps which was not confirmed. The addendum requested on 5/23/2023 was performed to inspection the cupping and peaking be addressed as it has progressively become worse.
An addendum jobsite inspection was performed on 6/7/2021. It was at this time that a directive was issued solely to address the peaking and cupping of the flooring. A written directive was issued based on the new findings and contained the new allegation and directive. The written directive was sent to both parties on 6/12/2023 and expired on 6/28/2023. Complainants stated that the respondent has not performed any additional work since 5/10/2023.
Compliance Findings:
Compliance Item 2: - Shiplap improperly installed buckling and poorly painted missing, caulking
Investigator’s Observation: At the time of the compliance inspection there were still locations in which paint blemishes could be seen. Although investigator was unable to photograph the issue there is still movement of the shiplap resulting in buckling during expansion and contraction of the materials. Some areas were addressed after the first directive but shiplap still contains multiple issues and falls short of industry standards.
Governing Rule: 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 3: - Trim missing from front door.
Investigator’s Observation: This line item was completed by the respondent.
Governing Rule: N/A
Compliance Item 4: - Garage door missing.
Investigator’s Observation: At the time of the inspection the original garage door was still installed. No changes from the time of the jobsite inspection.
Governing Rule: 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 5: - Master bedroom door, not painted.
Investigator’s Observation: At the time of the inspection the bedroom door remained unpainted and different color than door throughout the residence.
Governing Rule: 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 6: - Linen cabinet for guest bath missing.
Investigator’s Observation: At the time of the inspection the linen cabinet was installed but not in a completed state. The side skin panels of the cabinet were missing and there were exposed fastener on both sides. The toe kick of the cabinet remained unfinished and some hardware was missing at the time of the inspection. Repairs do not meet industry standards.
Governing Rule: 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: - Baseboards missing in guest bath. Investigator’s Investigator’s Observation: At the time of the compliance inspection the base boards in the guest bath were still not installed.
Governing Rule: 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 8: - Countertop not properly installed in guest bath.
Investigator’s Observation: This line item was completed prior to the compliance inspection.
Governing Rule: N/A
Compliance Item 9: - Trim, missing around kitchen, cabinets and windows.
Investigator’s Observation: At the time of the compliance inspection the trim on the kitchen cabinets remained missing. The missing trim included skin panels, trim along wall intersection and kick plate. The window trim in the kitchen cabinet was also missing at the time of the inspection.
Governing Rule: Rule: 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 10: - Broken pantry shelves, and several shelves missing in kitchen.
Investigator’s Observation: The pantry cabinet frame remained cracked and unchanged from the initial jobsite inspection. Cabinets were still missing shelves in different lower cabinets.
Governing Rule: Rule: 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: - Hall bath missing cabinet pulls.
Investigator’s Observation: At the time of compliance inspection some hardware had been installed. However, there were remaining locations on the installed cabinets that did not contain the cabinet pulls. Changes to not meet industry standards.
Governing Rule: Rule: 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: - All cabinet doors in house missing finger pulls.
Investigator’s Observation: At the time of the compliance inspection none of the installed 9 panels on 4 closets contained flush pull door handles. No changes from the time of the initial jobsite inspection.
Governing Rule: 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 14: - Electrical outlet missing on kitchen island.
Investigator’s Observation: This line item was completed prior to compliance inspection.
Governing Rule: N/A
Compliance Item 17: - Master bathroom vanity, not installed.
Investigator’s Observation: No master bathroom vanity installed at the time of the compliance inspection.
Governing Rule: 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 18: - Master bathroom lighting, not installed.
Investigator’s Observation: No change from jobsite inspection. No lighting installed.
Governing Rule: 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 19: - Master bathroom, electrical not complete.
Investigator’s Observation: Along with thein missing lighting in line item 18 there were also no electric receptacles installed and exposed wiring throughout.
Governing Rule: 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 20: - Master bath exhaust fan, not installed
Investigator’s Observation: Completed prior to compliance inspection.
Governing Rule: N/A
Compliance Item 21: - Master bath countertop, not installed.
Investigator’s Observation: At the time of the inspection the master bath countertops were not installed as not vanity is present. No changes from jobsite inspection.
Governing Rule: 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 22: - Master bath shiplap not installed
Investigator’s Observation: At the time of the compliance inspection the master bath shiplap had been installed.
Governing Rule: N/A
Compliance Item 23: - This line item was added as an addendum request. Flooring contains peaking and cupping.
Investigator’s Observation: At the time of the compliance inspection the peaking and cupping though out the kitchen and dining area was still present.
Governing Rule: 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...
(All errors contained in the original).
On July 19, 2023, the Registrar issued a Citation against Respondent, charging possible violations of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a), and A.R.S. § 32-1154(A)(22).
On or about August 3, 2023, Respondent e-mailed an Answer to the Registrar.
On or about August 18, 2023, a Notice of Hearing was issued setting a hearing on September 27, 2023, at the Office of Administrative Hearings, an independent state agency. A copy of the Notice of Hearing was mailed and e-mailed to Respondent’s addresses of record.
After several continuances, the hearing was held on May 28, 2024. A copy of the Order setting the hearing was sent to Respondent’s e-mail address of record
At hearing, Investigator Avila testified as to the Registrar’s involvement and the above timeline.
Investigator Avila testified that he had not been to the jobsite since July 12, 2023 when he completed his jobsite inspection.
Investigator Avila testified that most of the items were incomplete at that time, but he was unsure as to the current status.
Complainant testified on her own behalf and testified that she had allowed Respondent numerous chances to fully correct the project, but she simply could wait no longer.
As to the current status of the project, Complainant testified that Respondent made a good-faith effort on the item 2, the shiplap but it remained in an unsatisfactory condition. As to item 5, the master bedroom door was painted, but Respondent shaved down the door. As to item 7, the baseboard in the master bathroom were installed but were now coming away from the walls. As to item 9, the trim work in the kitchen, cabinets and windows was incomplete. As to item 19, the electrical was installed, but Respondent failed to install the plate covers. As to item 23, the floor was replaced, but Respondent failed to re-paint the baseboards.
Complaint also testified that Respondent corrected some items outside of the Directive requirements.
Although the start of the hearing was delayed approximately 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Further, Respondent did not request that the hearing be continued. Consequently, Respondent did not present any evidence to defend its license.
Administrative notice was taken of Respondent’s prior License record on June 12, 2024. Such prior License record reflected that Respondent’s License No. 330073 was first issued on August 4, 2020, and reflected that there was one open case, namely the present complaint and two ”resolved/settled cases”.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction. See A.R.S. § 32-1101 et seq.
Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A) and A.A.C. R2-19-119(B)(1); see also Vazzano 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 § 5 (1960).
The preponderance of the evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent did not complete the project in a workmanlike manner in violation of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(A).
The evidence established Respondent failed to complete the corrective work following the Directive being issued. Per Complainant’s testimony, there were still six items which were incomplete despite the repeated extension of time given to Respondent. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a written directive from the Registrar in violation of A.R.S. § 32-1154(A)(22).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall suspend Respondent’s License No. 330073 for a period of three days.
It is further recommended that the Registrar require Respondent to pay the sum of $300.00 as a civil penalty pursuant to A.R.S. § 32-1154(E).
It is further recommended that if Respondent fails to pay the entire amount of the civil penalty on or before thirty days following the effective date of the Registrar’s final order, the Registrar revoke Respondent’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in A.R.S. § 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.
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, June 12, 2024.
/s/ Adam D. Stone
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
Lilia Erlandson
[email redacted]
Max Build LLC
[email redacted]
By: OAH Staff