ALJDEC - Licensing
2023A-06277-CHC-ROC · Registrar of Contractors · 2023-09-01
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Elisa Zhang ,
COMPLAINANT
v.
Great State Mechanical Inc
License No. ROC 336979,
RESPONDENT
No. 2023A-06277-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: August 17, 2023
APPEARANCES: Elisa Zhang, Complainant, was represented by Denise Holliday. Elisa Zhang was a witness on her own behalf. Jack Falkner was a witness on behalf of Complainant. Sami Kivinen appeared on behalf of Great State Mechanical, Inc., Respondent. Investigator Michael Springer was a witness on behalf of the Registrar of Contractors.
ADMINISTRATIVE LAW JUDGE: Brian Del Vecchio
FINDINGS OF FACT
Great State Mechanical Inc. (Respondent) is the holder of License No. 336979 issued by the Arizona Registrar of Contractors (Registrar).
On or about April 19, 2023, Elisa Zhang (Complainant) entered into a contract with Respondent for, among other things, drywall and plumbing materials and services.
On or about June 2, 2023, the Registrar received a Complaint against Respondent from Complainant alleging abandonment of the project.
The Registrar assigned the complaint to Investigator Michael Springer. Investigator Springer contacted Complainant and he was informed no work was ever started on the project. Investigator Springer then submitted a recommendation to the Registrar’s legal department to issue a Citation against Respondent.
The Registrar issued a Citation against Respondent, charging possible violation of Ariz. Rev. Stat. § 32-1154(A)(1).
Investigator Springer provided consistently with paragraph 4 and provided no additional testimony at the hearing.
Jack Falkner testified he was the acquisition and asset manager for Complainant’s company, Thrive. He was responsible for overseeing the contracts and proposals for work to be completed on the properties he manages. Mr. Falkner testified he did not manage the property at issue until June of 2023. At the time Respondent contracted with Complainant, another asset manager was in charge of Respondent’s proposal. Mr. Falkner testified no work was completed on the invoice, however, $15,000.00 was paid to Respondent on April 21, 2023.
Complainant testified she contracted with Respondent for plumbing and drywall materials and services. The parties agreed to a contract for $32,171.95, with a $15,000.00 deposit for said materials and services, and the balance would be due upon completion on April 19, 2023. On April 21, 2023, Complainant transferred the deposit of $15,000.00. The date of Respondent’s performance under the contract was scheduled for April 27, 2023. On April 25, 2023, Sami Kivinen emailed Complainant and Complainant’s Chief Financial Officer informing them his business partner stole Complainant’s money and had not been heard from since.
Mr. Kivinen testified he was merely the qualifying party and licensee for Respondent. Mr. Kivinen testified he did not believe his license ought to be disciplined for the misdeeds of his partner. Mr. Kivinen testified he believed because no project began, his license was not subject to discipline.
Administrative notice is taken of Respondent’s prior License record on August 31, 2023. Such License record reflects that Respondent’s License No. 336979 was first issued on March 4, 2022, and had been inactive since June 6, 2023. Such License record also reflects that there were no other open complaints and no resolved/settled complaints against Respondent’s license.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction.
Complainant bears the burden of proof to establish Respondent’s statutory violations 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.”
Pursuant to ARIZ. REV. STAT. § 32-1127(B), Mr. Kivinen as the qualifying party is “responsible for any violation of this chapter by the licensee for licensure regulatory purposes under this chapter” (emphasis added). Mr. Kivinen mistakenly believed the license for which he is the qualifying party ought not to be disciplined because of the misdeeds of his partner. Mr. Kivinen stated the contract was abandoned because his partner stole Complainant’s money. Because the money was absconded by an officer of Respondent, Mr. Kivinen, was unable to perform under the contract. The qualifying party ultimately bears the responsibility for the abandonment of the contract subjecting Respondent’s license to discipline in the event of an abandonment under ARIZ. REV. STAT. § 32-1154(A)(1).
The evidence established that Respondent submitted a bid for Complainant’s project and did not perform the work in the bid. Accordingly, Complainant established that Respondent abandoned the contract and failed to complete the project in violation of ARIZ. REV. STAT. § 32-1154(A)(1).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall revoke Respondent’s License No. 336979.
It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to Ariz. Rev. Stat. § 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 Ariz. Rev. Stat. § 32-1101(A)(5), 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, September 1, 2023.
/s/ Brian Del Vecchio
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Martín Quezada, Director
Registrar of Contractors
Martín Quezada
Registrar of Contractors
c/o Legal Department
1700 W. Washington Street, Suite 105
Phoenix, AZ 85007
[email redacted]
Sami Kivinen
Great State Mechanical Inc.
1875 N Central Ave # 5
Phoenix, AZ 85004
(480) 286-9752
[email redacted]
Denise M. Holliday
HULL, HOLLIDAY & HOLLIDAY, PLC
[email redacted]
Elisa Zhang
[email redacted]
By: OAH Staff