ALJDEC - Licensing
2023A-06238-NPC-ROC · Registrar of Contractors · 2023-10-25
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Granite Karma, LLC,
COMPLAINANT
v.
KLB HomeCrafters, LLC
License No. ROC 316821,
RESPONDENT
No. 2023A-06238-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: October 24, 2023
APPEARANCES: Ramon Henriquez appeared on behalf of Complainant Granite Karma, LLC. Respondent KLB HomeCrafers, LLC did not appear.
ADMINISTRATIVE LAW JUDGE: Amy M. Haley
_____________________________________________________________________
FINDINGS OF FACT
KLB HomeCrafters, LLC (Respondent) is the holder of License No. 316821 issued by the Registrar of Contractors (Registrar).
On or about June 1, 2023, Granite Karma, LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $10,558.91 for the installation of countertops. This amount was the sum of two separate invoices: INV 003072, dated December 5, 2022, in the unpaid amount of $3,598.00 and INV 0033252, dated December 22, 2022, in the unpaid amount of $6,960.91.
The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation alleging a possible violation of Ariz. Rev. Stat. § 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 1:00PM on August 30, 2023. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record.
An August 17, 2023 Minute Entry - Granting Continuance from the Office of Administrative Hearings granted a requested continuance and advised the parties of how to connect to the continued hearing via Google Meet. The hearing was held via Google Meet on October 24, 2023.
Respondent did not timely 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. Henriquez, on behalf of Complainant, testified that the total due to Complainant was $10,558.91. This amount was due for services rendered, specifically the installation of countertops on two separate properties, that were completed on December 5, 2022, and December 22, 2022. He further testified that he had made several attempts to accommodate the Respondent in his efforts to make payment, including sending multiple emails, offering to allow the Respondent to pay by credit card without any additional fees, allowing payment plans, and retaining a lawyer to send a letter to the Respondent, all in an effort to avoid having to file a Complaint with the Registrar. None of his efforts had proven fruitful. Lastly, he testified that Respondent did not deny, but rather acknowledged that the monies were owed, outstanding, and due.
Respondent failed to appear at the hearing. This office received a Motion to Continue after the hearing had already begun and was not noted until the conclusion of the hearing. The continuance was not requested until after hours on Monday, October 23, 2023, for a hearing that was scheduled for 9:00AM the morning of October 24, 2023. In Respondent’s motion, it incorrectly stated the hearing was set for 1:00PM. It should further be noted that the October 24, 2023 hearing date had been set more than two months in advance, back on August 17, 2023.
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.
A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.”
The Minute Entry – Granting Continuance that the Office of Administrative Hearings emailed to Respondent at its email address of record on August 17, 2023 was reasonable, and Respondent is deemed to have received notice of the hearing.
Because Respondent’s motion to continue was significantly late, Respondent’s motion to continue the hearing is denied.
Ariz. Rev. Stat. § 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 $10,558.91 for the installation of countertops.
Complainant established that Respondent violated Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $10,558.91 for services or materials rendered in connection with Respondent’s contracting business.
Based upon Respondent’s violation of the provisions of Ariz. Rev. Stat. § 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 KLB HomeCrafters, LLC’s License No. 316821 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $10,558.91 in certified funds.
It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $10,558.91 in certified funds, the Registrar may close the Complaint in Case No. 2023-06238.
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, October 25, 2023.
/s/ Amy M. Haley
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
Granite Karma LLC
[email redacted]
KLB HomeCrafters LLC
[email redacted]
By: OAH Staff