ALJDEC - Licensing

2023A-06765-CHC-ROC · Registrar of Contractors · 2024-01-02

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Elizabeth Ramos,

COMPLAINANT

v.

Navarro’s Outdoor Environments, LLC

License No. ROC 327455,

RESPONDENT

No. 2023A-06765-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: December 13, 2023

APPEARANCES: Elizabeth Ramos appeared on her own behalf. Oscar Navarro appeared on behalf of Navarro’s Outdoor Environments, LLC.

ADMINISTRATIVE LAW JUDGE: Brian Del Vecchio

EXHIBITS ADMITTED INTO EVIDENCE: The electronic file submitted by the Registrar of Contractors “2023A-06765-CHC-ROC Notice of Hearing and Packet MAILED.pdf”.

FINDINGS OF FACT

Navarro’s Outdoor Environments, LLC (Respondent) is the holder of License No. 327455 issued by the Arizona Registrar of Contractors (Registrar).

On December 20, 2021, Elizabeth Ramos (Complainant) entered into a contract with Respondent for, among other things, construction of a pool and the surrounding hardscape. Respondent’s contract failed to include their ROC license number.

On June 15, 2023, the Registrar received a Complaint against Respondent from Complainant alleging abandonment and poor work with respect to the project.

The Registrar assigned the complaint to Investigator James Carter. After a jobsite inspection, Investigator Carter issued a written directive to Respondent that provided 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 August 1, 2023.

RESTRICTIONS

You may not perform or hire other contractors to perform work that is outside the scope of your license.

If your license is currently suspended for administrative reasons, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS

You are directed to remedy the following violations by the appropriate means:

Compliance Item: 1 - Interior Surface: Install of Standard

Regular Pebble Interior Surface, Color TBD.

1,250 Sq. Ft;

Travertine Pool Coping; Standard 6”x12”

Travertine coping Color (Ivory or Walnut)

Color TBD 95 Sq. Ft.;

Travertine Deck: Standard 3piece random

pattern (Ivory or Walnut) Set on DG and

Sand Base with Polymeric sand Grout. 470

Sq. Ft.;

Paver Border: Travertine to match deck6”- Antique Pewter Paver Border To Separate Grass and Rock. 40 Ln Ft

Investigator’s Observation: Verified. Pool and hardscaping is not completed. Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions.

Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Compliance Item: 2 - Sod and Irrigation: Sprinkler Irrigation

Automated with current irrigation timer.

Summer Bermuda Sod with top soil as

needed . 300 Sq. Ft;

Automatic Drip Irrigation: 1 Drip Irrigation

Valve with Drip Pressure Regulator and hook

up to Irrigation Timer.;

3-20 Gallon Queen Palms: Delivered, Planted

and Limited Warranty with proper Irrigation. ;

11-5 Gallon Shrubs and Ground Cover :

Delivered, Planted and Limited Warranty with

proper Irrigation.;

Landscape Rock:

1⁄2” to 1” Landscape Rock Spread at an

average 2” Depth 11 Tons

;

Clean up and Wall Access Repairs

Investigator’s Observation: Verified. Landscaping is not completed. Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, local building codes and manufacturers installation instructions.

Governing Rule: Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Following the issuance of the written directive, Mr. Navarro admitted Respondent completed no work. After the deadline in the directive expired, Investigator Carter was notified no corrective work had been performed.

The Registrar issued a Citation against Respondent, charging possible violations of Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A); Ariz. Rev. Stat. § 32-1154(A)(12), namely Ariz. Rev. Stat. § 32-1124(B); and Ariz. Rev. Stat. § 32-1154(A)(22).

Investigator Carter testified consistently with his jobsite inspection notes, written directive, and compliance jobsite inspection notes.

Complainant testified she hired Respondent during the pandemic to install a pool. Complainant paid Respondent in full but she still does not have a pool or the hardscape. Complainant testified she had no concerns with Respondent’s work prior to the installation of the shotcrete. When the shotcrete was supposed to be installed, progress on the project slowed. Workers stopped showing up to the jobsite, deadlines were missed, and the majority of the work remained unfinished. Complainant attempted to communicate with Respondent about the project; however, Respondent refused to reply.

Mr. Navarro admitted everything in the written directive was true. Mr. Navarro admitted he failed to complete the project and admitted the work that was completed was not workmanlike. Mr. Navarro testified he was not contesting Complainant’s complaint. Mr. Navarro testified the reason he failed to complete the project was due to lack of skilled workers, lack of availability of materials and rising costs of materials. Mr. Navarro further testified he failed to complete the project without excuse, but was hoping to make it right in the future. Mr. Navarro testified he does not intend to file for bankruptcy.

Administrative notice is taken of Respondent’s prior license record on December 29, 2023. Respondent’s License record reflects that Respondent’s license No. 327455 was first issued on January 1, 2020, and was revoked on September 26, 2023. Respondent’s license record also reflects that there were no other open complaints and four complaints resulting in discipline against Respondent’s license. Respondent’s license was suspended pursuant to case number 2022-10874 and case number 2022-10182. Respondent’s license was revoked pursuant to case number 2023-01458 and case number 2023-04486.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

Respondent’s revoked license does not deprive Complainant of her right to prosecute her complaint or prevent the Registrar from determining the merits of the complaint.

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.”

The evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Respondent admitted the work he completed was not workmanlike. Therefore, Complainant established that Respondent did not complete the project in a workmanlike manner in violation of Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A).

The evidence established that the contract failed to include the ROC license number as required by Ariz. Rev. Stat. Ariz. Rev. Stat. § 32-1124(B). Therefore, the Registrar established that Respondent failed to comply with the Registrar’s statute in violation of Ariz. Rev. Stat. § 32-1154(A)(12).

The evidence established that Respondent did not attempt to complete the corrective work following the Directive being issued. Mr. Navarro admitted he did not complete any work after the written directive was issued. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a written directive from the Registrar in violation of Ariz. Rev. Stat. § 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. 327455 for a period of 30 days.

It is further recommended that, on or before thirty (30) days after the effective date of the final order, Respondent shall provide a sample contract to the Registrar to demonstrate that it has amended its contracts to include its license number as required by Ariz. Rev. Stat. § 32-1124(B). If Respondent fails to establish to the Registrar that it has brought its forms into compliance with Ariz. Rev. Stat. § 32-1124(B) within thirty days, its contractor’s license shall be suspended until it demonstrates that it has done so.

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, January 2, 2024.

/s/ Brian Del Vecchio

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

c/o Legal Department

1700 W. Washington Street, Suite 105

Phoenix, AZ 85007

[email redacted]

Navarro's Outdoor Environments, LLC

[email redacted]

Elizabeth Ramos

[email redacted]

By: OAH Staff