ALJDEC decisions subject to certification as final
2023A-01849-RFA-LS-ROC · Registrar of Contractors · 2025-03-27
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Michael Clark Morton,
COMPLAINANT,
v.
Wm A Clark Construction Inc
License No. ROC 080678,
RESPONDENT.
No. 2023A-01849-RFA-LS-ROC
ADMINISTRATIVE LAW
JUDGE DECISION
HEARING: February 21, 2025.
APPEARANCES: Assistant Attorney General Charles Hover appeared for the Registrar of Contractors. Michael McLeran appeared for Complainant. William Clark appeared for Respondent.
ADMINISTRATIVE LAW JUDGE: Samuel Fox
EXHIBITS ADMITTED INTO EVIDENCE: Department’s Exhibits 1 through 12. Complainant’s Exhibits 1 through 16. Respondent’s Exhibits 1 through 10.
_____________________________________________________________________
FINDINGS OF FACT
Wm A Clark Construction Inc. (Respondent) was the holder of License No. 080678 issued by the Arizona Registrar of Contractors (Registrar) on November 2, 1988.
On or about February 23, 2023, the Registrar received a Complaint against Respondent from Michael Morton (Complainant) alleging abandonment and poor work.
After an investigation a written directive was issued to correct the work. The Directive from the Registrar specified that:
Compliance Item: 1 - The door headers for the three Great Room doors have sagged to the point where it is now impossible for the doors to open, close and lock properly, creating safety and security hazards.
Investigator’s Observation: The doors in the living room are not working properly. They do not close or lock properly. This needs to be addressed..
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.
Respondent did not perform any corrective work during the Directive period.
The Registrar issued a Citation against Respondent charging possible violations of Arizona Revised Statutes (A.R.S.) § 32-1154(A)(1); A.R.S. § 32-1154(A)(3), specifically Arizona Administrative Code (A.A.C.) R4-9-108(A); and A.R.S. § 32-1154(A)(22).
Respondent filed a timely answer to the Citation, and an administrative hearing was held. In her Decision, Administrative Law Judge Jenna Clark considered Respondent’s arguments and concluded that Complainant established Respondent had, in relevant part, violated A.R.S. § 32-1154(A)(1); A.R.S. § 32-1154(A)(3), specifically A.A.C. R4-9-108(A); and A.R.S. § 32-1154(A)(22) with respect to Compliance Item 1. The Administrative Law Judge recommended a ten-day suspension of Respondent’s license.
On or about September 5, 2023, the Registrar issued its Final Decision, adopting the Administrative Law Judge’s Decision in full.
Complainant then filed a claim with the Residential Contractors’ Recovery Fund (the Fund) to recover the cost of completing or repairing the project.
The Registrar issued a Notice of Administrative Award, finding that Complainant’s compensable actual damages were $30,000. Respondent requested a hearing. Complainant did not contest the amount of the administrative payout. The Registrar referred the matter to the Office of Administrative Hearings (OAH) for an evidentiary hearing.
A hearing was held on March 20, 2025.
Meridith Bell testified for the Registrar. She testified that Complainant was eligible and followed all of the steps required to receive an award from the recovery fund. She testified in support of the documents and calculation provided in the exhibits. She testified in support of Complainant being entitled to a $30,000 award. She testified that because the valid expenditures to complete the project were so high, she did not include all of the valid expenditures.
Mr. Morton testified for on his own behalf. He testified in support of the Registrar’s award and findings.
Mr. Clark testified for Respondent. He testified that Complainant should not receive compensation for anything except the cost of repairing the doors.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction.
A.R.S. § 32-1132.01(B) provides, in pertinent part, as follows:
An award from the residential contractors’ recovery fund may not exceed the actual damages suffered by the claimant as a direct result of a contractor’s violation. Actual damages:
1. May not exceed an amount necessary to complete or repair a residential structure or appurtenance within residential property lines.
2. Must be established by bids supplied by or the value of work performed by a person that is licensed pursuant to this chapter if the person is required to be licensed pursuant to this chapter.
Respondent bears the burden of proof to establish that the proposed payout from the Fund is incorrect 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.”
If a project is abandoned, reasonable bids to complete the work are valid expenditures for claims on the recovery fund. Accordingly, Complainant’s award was not limited to the poor work violations related to the doors because Respondent was found to have abandoned the project.
The preponderance of the evidence established the award provided by the Fund. Accordingly, Complainant is entitled to a payout from the Fund in the amount of $30,000.
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Registrar’s final order Complainant receive a payout from the Residential Contractors’ Recovery Fund in the amount of $30,000.
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, March 27, 2025.
/s/ Samuel Fox
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
Arizona Registrar of Contractors
[email redacted]
[email redacted]
Michael Clark Morton
[email redacted]
Wm A Clark Construction Inc.
[email redacted]
Steven R. Beeghley, Esq.
Sacks Tierney, P.A.
[email redacted]
By: OAH Staff