ALJDEC - Licensing

2023A-05672-NPC-ROC · Registrar of Contractors · 2023-09-05

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Forrest Equipment Rentals,

COMPLAINANT

v.

Hula Construction Inc.

License No. ROC 261460,

RESPONDENT

No. 2023A-05672-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: August 29, 2023

APPEARANCES: Brian Collins, Vice President of Sales, appeared on behalf of Complainant Forrest Equipment Rentals. Respondent Hula Construction Inc. did not appear.

ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer

_____________________________________________________________________

FINDINGS OF FACT

Hula Construction Inc. (Respondent) is the holder of License No. 261460 issued by the Registrar of Contractors (Registrar).

On or about May 16, 2023, Forrest Equipment Rentals (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $5929.53 for the rental of equipment.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation for Alleged Violation of A.R.S. § 32-1154(A)(10).

The Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing.

The Registrar issued a Notice of Hearing, setting a hearing at 1:00 p.m. on August 29, 2023. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record. An August 8, 2023 order from the Office of Administrative Hearings advised the parties of how to connect to the hearing via Google Meet. The hearing was held via Google Meet on August 29, 2023.

Respondent did not request that the hearing be continued. Although the start of the hearing was delayed 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any evidence to defend its license.

Mr. Collins testified that the total due to Complainant was $5929.53. Mr. Collins indicated that Complainant had failed to respond to multiple attempts to collect the balance due. Mr. Collins indicated that Javier Rodriguez, Respondent’s Qualifying Party, informed him that he was going through a divorce and his wife had taken money from him. Mr. Collins said that the last time he called Mr. Rodriguez regarding the balance due, Mr. Rodriguez hung up as soon as determined it was Mr. Collins calling.

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.

The copies of the Notice of Hearing that the Registrar mailed to Respondent at its address and email address of record were reasonable and Respondent is deemed to have received notice of the hearing. A.R.S. §§ 41-1092.04 and 41-1092.05(D).

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 owed a total of $5929.53 for equipment rental.

Therefore, Complainant established that Respondent violated A.R.S. § 32-1154(A)(10) by failing to pay Complainant $5929.53 for services or 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 Hula Construction Inc.’s License No. 261460 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $5929.53 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $5929.53 in certified funds, the Registrar may close the Complaint in Case No. 2023-05672.

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, September 5, 2023.

/s/ Tammy L. Eigenheer

Administrative Law Judge

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

Martín Quezada, Director

Registrar of Contractors

Forrest Equipment Rentals

[email redacted]

Hula Construction Inc.

[email redacted]

By: OAH Staff