2023A-08164-CHC-ROC Notice of Hearing and Packet MAILED

2023A-08164-CHC-ROC · Registrar of Contractors · 2023-11-06

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2023-08164 COMPLAINANT, Docket No. 2023A-08164-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE N & E Construction LLC License No. ROC 291996,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

December 20, 2023 9:00 AM Velva Moses-Thompson Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on October 3, 2023. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A) (9)

Charge: 2 A.R.S. § 32-1154(A) (18)

Charge: 3 A.R.S. § 32-1154(A) (19)

Charge: 4 A.R.S. § 32-1154(A) (9)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is

cause for the suspension or revocation of a license, Respondent is a party to this case and will

be a party to the hearing.

Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing. Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-

1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of

any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents

are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit

additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below. SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings.

A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/content/prehearing-disclosure- statement.

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the

assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties.

The motion must state in detail good cause for why the date of the hearing should be advanced

or delayed, and the position of all other parties regarding the advancement or delay.

A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

In any case which is resolved or settled by the parties, or which is withdrawn by the

Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated November 2, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail November 2, 2023 to:

Respondent(s) N & E Construction LLC 1401 N Cliffside Dr Gilbert, AZ 85234-2660 Guy William Bluff 7007 Wyoming Blvd NE, Ste D-6 Albuquerque, NM 87109

Complainant(s) Arizona Registrar of Contractors 1700 W Washington St Ste 105 Phoenix, AZ 85007

Wesley Cox, Esq. 2005 N Central Ave Phoenix, AZ 85004

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar

Case No. 2023-08164 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

How do I disclose evidence I intend to use at a Hearing?

You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.

A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.

How do I obtain documents I previously submitted to the Registrar?

If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Page 1 (Pages 1-4) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 1 Page 3 ·1·· · · ·IN THE SUPERIOR COURT OF THE STATE OF ARIZONA ·1·· · · · · · · · · · E· X H I B I T S ··· ·2·· · · · · · ·IN AND FOR THE COUNTY OF MARICOPA ···Deposition · ··· ·2···Exhibits· · ·Description· · · · · · · · · · · ··PAGE ·3·· ·3···4· · · · · · ·Defendant N&E Construction,· · · · ·51 ···· KENNETH KESTENBAUM,· · · · · · · · ··) ·4·· · · · · · · · · · · · · · · · · · · ·) ···· · · · · · ··LLC's Supplemental Responses to ··· · · ·Plaintiff,· · · · · · · · · · ··) ·4·· · · · · · · ··Plaintiff Kenneth Kestenbaum's ·5·· · · · · · · · · · · · · · · · · · · ·) ···· · · · · · ··First Set of Requests for ···· vs.· · · · · · · · · · · · · · · · ··) No. CV2021-016451 ·6·· · · · · · · · · · · · · · · · · · · ·) ·5·· · · · · · · ··Production of Documents and ···· N&E CONSTRUCTION, LLC, an Arizona· ··) ···· · · · · · ··Tangible Things (5 pages) ·7···Limited Liability Corporation,· · · ·) ··· · · · · · · · · · · · · · · · · · · ·) ·6··· ·8·· · · ·Defendant.· · · · · · · · · · ··) ·7··· ··· ···5· · · · · · · ·E-mail dated October 4, 2021, to· ··68 ·9·· ··· ·8·· · · · · · · ··[email redacted] from Ermal Syla 10·· ···· · · · · · ··and contract (Bates ADVN&E000001 ··· ·9·· · · · · · · ··02, 03 (3 pages) 11·· ··· 10··· 12·· · · · · · · · ··DEPOSITION OF ERMAL SYLA 11···6· · · · · · ·Twenty Day Preliminary Notice· · · ·78 ··· ···· · · · · · ··(Bates ADVN&E000056, 57) 13·· · · · · · · · · · ··Phoenix, Arizona ··· · · · · · · · · · ·September 29, 2022 12·· · · · · · · ··(2 pages) 14·· · · · · · · · · · · · ·10:00 a.m. 13··· ··· 14···7· · · · · · ·Text message and pictures· · · · · ·87 15·· ··· ···· · · · · · ··(Bates ADVN&E000025) (1 page) 16·· 15··· ··· 17·· 16··· ··· ···8· · · · · · · ·E-mail dated September 24, 2021,· ··91 18·· 17·· · · · · · · ··to harrygagnon1@gmailcom from 19·· 20··REPORTED BY: ···· · · · · · ··Accounts Receivable Donley 21··ANITA LANDEROS, RPR 18·· · · · · · · ··Service (Bates ADVN&E000082 through 22··Certified Reporter ···· · · · · · ··98) (17 pages) 23··Certificate No. 50538 24·· 19··· 25··PREPARED FOR: 20··· 21··· 22··· 23··· 24··· 25···

Page 2 Page 4 ·1·· · · · · · · · · · · · ··I N D E X ·1·· · · · · · · · · DEPOSITION · OF ERMAL SYLA ·2··· ·2···was taken on September 29, 2022, commencing at 9:56 a.m., ·3···WITNESS· · · · · · · · · · · · · · · · · · · ·PAGE · ·3···at the Hernandez Law Firm, PLC, 361 East Coronado Road, ·4···ERMAL SYLA ·4···Phoenix, Arizona, before Anita Landeros, a Certified ·5·· · · ··Examination by Mr. Hernandez· · · · · ··5, 114 ·5···Reporter in the State of Arizona. ·6·· · · ··Examination by Mr. Moulton· · · · · · · · ·100 ·7··· ·6··· ·8·· · · · · · · · ··MR. HERNANDEZ'S REQUEST ·7···COUNSEL APPEARING: ·9·· · · · · · · · · · · ··Page· ·Line ·8···For the plaintiff: ···· · · · · · · · · · · ··28· · ·14 ·9·· · · ··By:··MR. ISAAC P. HERNANDEZ 10·· · · · · · · · · · · · ··30· · ·15 ···· · ··Hernandez Law Firm, PLC ···· · · · · · · · · · · ··57· · ·05 10·· · · ··361 East Coronado Road 11··· ···· · ··Phoenix, Arizona··85004 12··· 11··· 13··· 12··· ···· · · · · · · · · · E· X H I B I T S 13···For the defendant: 14···Deposition 14·· · · ··By:··MR. TERRY W. STRAUGHN ···Exhibits· · · ·Description· · · · · · · · · · · ··PAGE ···· · ··Bremer Whyte Brown & O'Meara, LLP 15··· ···1· · · · · · · ·Defendant N&E Construction,· · · · ·35 15·· · · ··8950 South 52nd Street 16·· · · · · · · ··LLC's, Supplemental Responses ···· · ··Suite 201 ···· · · · · · ··to Plaintiff Kenneth Kestenbaum's 16·· · · ··Tempe, Arizona··85284 17·· · · · · · · ··First Set of Uniform 17··· ···· · · · · · ··Interrogatories (7 pages) 18··· 18··· ···For · State Farm Insurance: 19···2· · · · · · ·Kestenbaum v. N&E,· · · · · · · · ··45 19··· ···· · · · · · ··BWBO File No. 1448.025 ···· · ··By:··MR. TIMOTHY LEE MOULTON 20·· · · · · · · ··(Bates N&E 000046, 47, 48) 20·· · · ··The Moulton Law Firm, P.C. ···· · · · · · ··(3 pages) ···· · ··6401 East Thomas Road 21··· 21·· · · ··Suite 101 22···3· · · · · · ·N&E Construction Estimate· · · · · ·47 ···· · · · · · ··000338 dated 4-22-21; Invoice ···· · ··Scottsdale, Arizona··85251 23·· · · · · · · ··000104 dated 7-26-21 22··· ···· · · · · · ··(Bates N&E 000001, 02, 03, 04) 23··· 24·· · · · · · · ··(5 pages) 24···Also present was Mr. Kenneth Kestenbaum. 25··· 25···

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 2 (Pages 5-8) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 5 Page 7

·1·· · · · · · · · · · · · ERMAL · SYLA, ·1···hour on the hour. ·2···called as a witness herein, after having been first duly ·2·· · · · · · · ··If you need to take a break at any time for ·3···sworn, was examined and testified as follows: ·3···any reason, whether it's to get a drink of water, run to ·4··· ·4···the bathroom, or just stretch your legs, please, let me ·5·· · · · · · · · · · · · EXAMINATION · ·5···know and we are more than happy to accommodate. ·6···BY MR. HERNANDEZ: ·6·· · · · · · · ··The only thing to avoid is that it does not ·7·· · ··Q.· ·All right.··Good morning, Mr. -- is it Syla or ·7···reflect well on the record when the witness asks to take a ·8···Syla? ·8···break during a pending question.··Do you understand that? ·9·· · ··A.· ·Whichever way, Syla, Syla. ·9·· · ··A.· ·Yes. 10·· · ··Q.· ·Mr. Syla, my name is Isaac Hernandez, and I'm the 10·· · ··Q.· ·Your attorney may raise certain objections 11···attorney for the plaintiff, Mr. Kenneth Kestenbaum, in 11···throughout the course of your deposition today.··You're 12···this case. 12···still obligated to give me your best answer, unless your 13·· · · · · · · ··Although you did it off the record, I'm 13···attorney instructs you not to answer a question.··Do you 14···going to ask you to please state and spell your full name 14···understand that? 15···including any middle names. 15·· · ··A.· ·Yes. 16·· · ··A.· ·Ermal Syla. 16·· · ··Q.· ·If you need me to repeat or rephrase or slow down 17·· · ··Q.· ·Any middle names? 17···in my questioning for any reason, please, let me know. 18·· · ··A.· ·No. 18···Again, I'm more than happy to accommodate. 19·· · ··Q.· ·And can you please spell that for us on the 19·· · · · · · · ··And the other thing I'd like to tell 20···record? 20···witnesses before we get started, Mr. Syla, is that we're 21·· · ··A.· ·E-r-m-a-l S-y-l-a. 21···talking about things in this case that happened about a 22·· · ··Q.· ·Have you ever been deposed before, Mr. Syla? 22···year ago, and sometimes it's even longer. 23·· · ··A.· ·No. 23·· · · · · · · ··When I ask you for dates -- when I ask you 24·· · ··Q.· ·Have you ever testified in court before? 24···to describe certain events, I'm not asking you to give me 25·· · ··A.· ·No. 25···an exact answer.··In other words, if I ask you when a

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·1·· · ··Q.· ·Do you understand that your testimony today in ·1···certain event happened and you say you don't remember, I'm ·2···this room you're providing is just as if you were in the ·2···going to ask you to give me at least a month or a year. ·3···courtroom in front of the judge under penalty of perjury? ·3···And give me your best estimate of that month or year, and ·4·· · ··A.· ·Yes. ·4···if I need to go back in and ask you further details about ·5·· · ··Q.· ·What I'd like to do, Mr. Syla, is go over some ·5···when something may have happened, it's my job to do that, ·6···preliminary instructions that you have already covered ·6···but it's your job to give me your best answer, okay? ·7···with your attorneys, but just so that you and I have an ·7·· · ··A.· ·Yes, okay. ·8···understanding between us of the rules of the road for ·8·· · ··Q.· ·Have you taken any drugs or any substance that ·9···today, I'd like to go over those with the witness before ·9···would prohibit you from providing truthful testimony 10···we get started. 10···today? 11·· · · · · · · ··The first one the court reporter has already 11·· · ··A.· ·No. 12···kind of touched on.··It's really important that you do 12·· · ··Q.· ·Other than meeting with your attorneys, did you 13···your best to avoid responding with uh-uhs or uh-uhs or 13···do anything to prepare for your deposition today? 14···nods of the head, because the court reporter cannot pick 14·· · ··A.· ·No. 15···those responses up on the record.··So please provide 15·· · ··Q.· ·Did you review any documents to prepare for your 16···audible responses, yes and no, when appropriate. 16···deposition today? 17·· · ··A.· ·Okay. 17·· · ··A.· ·No. 18·· · ··Q.· ·It's also important for us to not speak over one 18·· · ··Q.· ·Other than your attorneys, did you discuss your 19···another.··So, please, allow me the courtesy of finishing 19···deposition testimony with anyone before today? 20···my question before you answer, even if you can anticipate 20·· · ··A.· ·No. 21···the answer or know what the answer is going to be, let me 21·· · ··Q.· ·What is your current address, Mr. Syla? 22···finish the question first, okay? 22·· · ··A.· ·1401 North Cliffside Drive, Gilbert, Arizona 23·· · ··A.· ·Okay. 23···85234. 24·· · ··Q.· ·I do anticipate we'll be here for probably in the 24·· · ··Q.· ·Have you gone by any other names in your adult 25···two- to three-hour range.··I try to take a break every 25···life?

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 3 (Pages 9-12) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 9 Page 11

·1·· · ··A.· ·No, just my name. ·1·· · ··Q.· ·And what are your personal e-mail addresses? ·2·· · ··Q.· ·Okay.··Do you have any college or university ·2·· · ··A.· ·Syla or [email redacted]. ·3···experience? ·3·· · ··Q.· ·Any others? ·4·· · ··A.· ·Community college. ·4·· · ··A.· ·Not at the moment, personal.··I don't have it for ·5·· · ··Q.· ·Okay.··And when was that? ·5···personal.··Any other e-mails or in general you're asking? ·6·· · ··A.· ·That was in 2009, '10, around then. ·6·· · ··Q.· ·In general, do you have any other e-mails you ·7·· · ··Q.· ·And which community college? ·7···use? ·8·· · ··A.· ·Glendale. ·8·· · ··A.· ·Yes. ·9·· · ··Q.· ·Did you get a degree? ·9·· · ··Q.· ·And what are those? 10·· · ··A.· ·No. 10·· · ··A.· ·GEventures2@gmail. 11·· · ··Q.· ·Roughly, for what period of time did you attend 11·· · ··Q.· ·So G-E Number 2 ventures? 12···or take classes at Glendale Community College? 12·· · ··A.· ·No.··GEventures Number 2 at gmail. 13·· · ··A.· ·About a year and a half -- a year and a half of 13·· · ··Q.· ·All right.··Mr. Syla, how many employees -- 14···classes. 14···you're an owner of the company, right? 15·· · ··Q.· ·And what was the general nature of the classes 15·· · ··A.· ·Yes. 16···that you took? 16·· · ··Q.· ·Of N&E? 17·· · ··A.· ·Just general subjects. 17·· · ··A.· ·Right. 18·· · ··Q.· ·Okay.··And other than the time you spent at 18·· · ··Q.· ·Are there any other owners aside from yourself? 19···Glendale Community College, do you have any other 19·· · ··A.· ·No.··I'm just the owner. 20···professional licenses or certifications? 20·· · ··Q.· ·Okay. 21·· · ··A.· ·No. 21·· · ··A.· ·There used to be Joseph, but now it's just me. 22·· · ··Q.· ·Are you a licensed contractor? 22·· · ··Q.· ·When did you start the company? 23·· · ··A.· ·Yes. 23·· · ··A.· ·The company, 2014.··Yeah, eight years.··'14. 24·· · ··Q.· ·And how long have you been a licensed contractor? 24·· · ··Q.· ·And when you started the company initially, there 25·· · ··A.· ·For about eight years, I believe, almost eight 25···was another owner?

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·1···years.··Seven or eight years.··Eight years. ·1·· · ··A.· ·Part owner, yeah. ·2·· · ··Q.· ·What's your cell number, Mr. Syla? ·2·· · ··Q.· ·And what's his name? ·3·· · ··A.· ·(602) 618-7847. ·3·· · ··A.· ·He cosigned.··Joseph -- not on my mind right now ·4·· · ··Q.· ·Is that the only cell phone number that you've ·4···the last name.··Cosigner. ·5···used since September of 2021? ·5·· · ··Q.· ·Let me give you a name because I think I have it. ·6·· · ··A.· ·Yes. ·6···I'm just going to spell it for you.··C-u-d-z-i-c-h? ·7·· · ··Q.· ·How many cell phones have you used since ·7·· · ··A.· ·Yes. ·8···September of 2021? ·8·· · ··Q.· ·And how do you say his name? ·9·· · ··A.· ·Just this one. ·9·· · ··A.· ·Joseph. 10·· · ··Q.· ·Okay.··So the phone that you have now is the same 10·· · ··Q.· ·The last name? 11···one that you had back in September of 2021? 11·· · ··A.· ·Cudzich. 12·· · ··A.· ·Yes.··I don't change my phones much. 12·· · ··Q.· ·And how did you know -- did you know Joseph 13·· · ··Q.· ·Okay.··And who is your cell phone provider? 13···before you became partners with him? 14·· · ··A.· ·T-Mobile. 14·· · ··A.· ·Yeah, yeah. 15·· · ··Q.· ·How long has T-Mobile been your cell phone 15·· · ··Q.· ·And who is he? 16···provider? 16·· · ··A.· ·We did some work.··A friend of a friend.··We did 17·· · ··A.· ·It's been five years.··From Verizon, five, six. 17···some work, relationship work. 18·· · ··Q.· ·And I have one e-mail address for you, Mr. Syla: 18·· · ··Q.· ·What do you mean by that? 19···[email redacted]; is that right? 19·· · ··A.· ·Like I did some work for him.··We did some 20·· · ··A.· ·Yes. 20···projects together. 21·· · ··Q.· ·Do you use any other e-mails for work-related 21·· · ··Q.· ·Okay. 22···purposes? 22·· · ··A.· ·And that's how we became a relationship. 23·· · ··A.· ·No, not for work.··Mostly this one. 23·· · ··Q.· ·And you mentioned or testified at some point you 24·· · ··Q.· ·Do you have any personal e-mail addresses? 24···became the sole owner of the company; is that right? 25·· · ··A.· ·Yes, yes. 25·· · ··A.· ·Yeah, recently, yeah.

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 4 (Pages 13-16) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 13 Page 15 ·1·· · ··Q.· ·So how recently?··When did that happen? ·1···Kestenbaum home? ·2·· · ··A.· ·Six months.··Six months ago.··Six months ago, I ·2·· · ··A.· ·No. ·3···believe.··You send the paper and then they just e-mail you ·3·· · ··Q.· ·Did you contact him to solicit or ask advice on ·4···back through the license of contractors, but in my mind -- ·4···what to do? ·5···I don't know exact date.··It's about -- no more than six ·5·· · ··A.· ·No. ·6···months, I believe. ·6·· · ··Q.· ·Do you have Joseph's cell phone number? ·7·· · ··Q.· ·Okay. ·7·· · ··A.· ·I believe I do. ·8·· · ··A.· ·Six months. ·8·· · ··Q.· ·What is that? ·9·· · ··Q.· ·And you mentioned the Registrar of Contractors. ·9·· · ··A.· ·Should I look into that? 10···You sent in some paperwork to the Registrar of Contractors 10·· · ··Q.· ·Sure. 11···to remove him as owner of the company? 11·· · ··A.· ·(602) 432-1511. 12·· · ··A.· ·Yes, yes.··That's what they do. 12·· · ··Q.· ·How many employees has the company had since you 13·· · ··Q.· ·Did anybody help you with that, or did you and 13···started in 2014 aside from yourself? 14···Joseph do that on your own? 14·· · ··A.· ·"Employees," you mean with subs and -- or just. 15·· · ··A.· ·I did it on my own, yeah.··I did it.··He cosigned 15·· · ··Q.· ·W-2 employees that you have on payroll? 16···and then recently I'm on my own. 16·· · ··A.· ·Just one, just one, my dad. 17·· · ··Q.· ·And what prompted the change to remove Joseph as 17·· · ··Q.· ·And you said just one, and that's your dad? 18···part owner of the company? 18·· · ··A.· ·Uh-huh. 19·· · ··A.· ·Because after certain years, you can go on your 19·· · ··Q.· ·And who is that? 20···own. 20·· · ··A.· ·Nuredin, N-u-r-e-d-i-n, Syla. 21·· · ··Q.· ·And what do you mean? 21·· · ··Q.· ·And your dad you have as a W-2 employee? 22·· · ··A.· ·After certain years, you can be by yourself. 22·· · ··A.· ·I have to check.··I have him in insurance, but 23·· · ··Q.· ·Okay. 23···W-2, I'm not sure.··I'm not sure.··I mostly didn't have 24·· · ··A.· ·And I decided to go on my own. 24···W-2.··Most of the employees were 1099s.··And that's what 25·· · ··Q.· ·Okay.··From 2014 until six months ago, what role 25···my employees were.··Most of the employees were 1099 or

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·1···did Joseph have -- ·1···other subs in their own trades. ·2·· · ··A.· ·No role. ·2·· · ··Q.· ·Okay.··So your dad, Nuredin, was the only ·3·· · ··Q.· ·-- in managing? ·3···employee that you had, right, and the others were ·4·· · · · · · · ··MR. STRAUGHN:··You have to let him finish ·4···subcontractors? ·5···the full question. ·5·· · ··A.· ·Yes, yes. ·6·· · · · · · · ··THE WITNESS:··I'm sorry. ·6·· · ··Q.· ·D&M Electric, do you know who that is? ·7·· · ··Q.· ·BY MR. HERNANDEZ:··That's okay.··It takes a ·7·· · ··A.· ·Yes, electrical company. ·8···little practice.··So the question was from 2014 until more ·8·· · ··Q.· ·And is there somebody from D&M Electric that you ·9···recently, what was his role in managing the operations of ·9···typically worked with as a subcontractor? 10···the company? 10·· · ··A.· ·Yeah, I worked with.··I worked. 11·· · ··A.· ·No role. 11·· · ··Q.· ·And who did you work with from D&M Electric? 12·· · ··Q.· ·No role at all? 12·· · ··A.· ·Manny and Derek.··I believe they're the owners. 13·· · ··A.· ·No role. 13···They're the owners, Manny and Derek. 14·· · ··Q.· ·Did he contribute financially to funding any 14·· · ··Q.· ·Are Manny and Derek individuals who performed 15···projects? 15···work on the Kestenbaum home? 16·· · ··A.· ·No, no. 16·· · ··A.· ·Yes, usually I see them work.··Sometimes I don't. 17·· · ··Q.· ·Did he contribute financially to paying some 17···They have their own employees, but usually I see them 18···contractors or employees? 18···work. 19·· · ··A.· ·No, no. 19·· · ··Q.· ·Do you know if either one of them did electrical 20·· · ··Q.· ·Was he involved in any way in helping you 20···work on the Kestenbaum home? 21···finalize or negotiate contracts? 21·· · ··A.· ·Yes. 22·· · ··A.· ·No, just advice sometimes.··If I had any 22·· · ··Q.· ·And which of them did work on the Kestenbaum 23···advice -- questions, but that's about it. 23···home? 24·· · ··Q.· ·Okay.··Was Joseph involved in any way in 24·· · ··A.· ·Both of them.··I think both of them. 25···negotiating the contract for the work you did on the 25·· · ··Q.· ·And how do you know that?

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 5 (Pages 17-20) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 17 Page 19 ·1·· · ··A.· ·Because I would go to job site and I would see ·1·· · ··Q.· ·And what are their cell phone numbers? ·2···them. ·2·· · ··A.· ·(480) 773-1890. ·3·· · ··Q.· ·And prior to having Manny or Derek do work on the ·3·· · ··Q.· ·And is that for Manny or Derek? ·4···Kestenbaum home, did you negotiate and discuss an ·4·· · ··A.· ·Manny. ·5···agreement for the work that they're supposed to do? ·5·· · ··Q.· ·Do you have a cell phone number for Derek? ·6·· · ··A.· ·Of course, yes, yes. ·6·· · ··A.· ·No. ·7·· · ··Q.· ·And how do you document that? ·7·· · ··Q.· ·Have you checked your cell phone for any text ·8·· · ··A.· ·"Document" as far as? ·8···messages with Manny regarding the work on the Kestenbaum ·9·· · ··Q.· ·Your agreement with D&M Electric? ·9···home? 10·· · ··A.· ·Yeah, yeah. 10·· · ··A.· ·No, I didn't. 11·· · ··Q.· ·And specifically to do work on the Kestenbaum 11·· · ··Q.· ·You haven't checked for those yet? 12···home? 12·· · ··A.· ·No, I didn't because it's long time ago, so I 13·· · ··A.· ·Yeah, yeah. 13···didn't check that further, to tell you the truth.··I went 14·· · ··Q.· ·Did you document an agreement about the work that 14···scrolling, but it's a long time ago.··So I wasn't able to 15···they were supposed to do? 15···find anything. 16·· · ··A.· ·Yeah, we build a relationship.··And usually 16·· · ··Q.· ·But you have looked? 17···ballpark area, I know what they charge.··They do the work. 17·· · ··A.· ·I've looked, yeah, yeah.··I've looked if I have 18···They send me an invoice or tell me:··This is how much it's 18···any. 19···going to cost. 19·· · ··Q.· ·When was the last time you looked for any text 20·· · ··Q.· ·And so is it typical of them to send you an 20···messages with Manny about the work that was done on the 21···invoice for the work that was done? 21···Kestenbaum home? 22·· · ··A.· ·Yes, usually. 22·· · ··A.· ·When we were going through with my lawyer to 23·· · ··Q.· ·Did they do that for the work that they did on 23···check for any information. 24···the Kestenbaum home? 24·· · ··Q.· ·And I don't need to know about any conversations 25·· · ··A.· ·I have to go through my e-mails to check. 25···that you had with the lawyer.

Page 18 Page 20 ·1·· · ··Q.· ·Which e-mail would you check? ·1·· · ··A.· ·Okay. ·2·· · ··A.· ·Construction. ·2·· · ··Q.· ·Okay. ·3·· · ··Q.· ·You haven't done that yet? ·3·· · ··A.· ·Okay. ·4·· · ··A.· ·I went through -- it's been a while, so I have to ·4·· · ··Q.· ·Just so that we're clear going forward? ·5···look into it.··I'm pretty sure it's there, but it's been a ·5·· · ··A.· ·Okay. ·6···while.··It's been one year or something.··Oh, I have to ·6·· · ··Q.· ·My question was:··When was the last time that you ·7···check through my e-mail specifically for that address that ·7···checked for text messages with Manny about the work on the ·8···they send me an invoice. ·8···Kestenbaum home? ·9·· · ··Q.· ·Okay.··Other than them sending you an invoice, do ·9·· · ··A.· ·A few weeks ago.··Three weeks ago -- two -- three 10···you document an agreement beforehand of the work that 10···weeks ago. 11···they're supposed to do? 11·· · ··Q.· ·And you didn't find any then? 12·· · ··A.· ·Depends on the job. 12·· · ··A.· ·I didn't find any as far as Kestenbaum.··It's 13·· · ··Q.· ·Okay. 13···been quite a while. 14·· · ··A.· ·Depends.··If it's too small, if it's too big -- 14·· · ··Q.· ·Who's Alberto Delgado? 15···if you build relationship with someone, you just tell them 15·· · ··A.· ·Who is he? 16···to go ahead and do it and send me the invoice. 16·· · ··Q.· ·Who is he? 17·· · ··Q.· ·Okay.··Was the job that D&M Electric did on the 17·· · ··A.· ·He's a worker that does plumbing work, basic 18···Kestenbaum home -- 18···plumbing work for me. 19·· · ··A.· ·Yes. 19·· · ··Q.· ·How long have you worked with Mr. Delgado? 20·· · ··Q.· ·-- a big job or a small job? 20·· · ··A.· ·It's been three years, I think, three years that 21·· · ··A.· ·Medium job, medium job.··But they did the job 21···I've known him. 22···there, yeah. 22·· · ··Q.· ·And you identified him in the discovery 23·· · ··Q.· ·Do you have cell phone numbers for Manny and 23···documents -- your attorneys identified him as a 24···Derek? 24···subcontractor; is that right? 25·· · ··A.· ·Yes. 25·· · ··A.· ·Yes.··I sub him work, yes.

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·1·· · ··Q.· ·Mr. Delgado, does he have a registered license ·1·· · ··Q.· ·Okay. ·2···with the Registrar of Contractors? ·2·· · ··A.· ·I haven't had a problem besides this, if there ·3·· · ··A.· ·I don't think so. ·3···was a problem. ·4·· · ··Q.· ·Did you check for it? ·4·· · ··Q.· ·Did you check your phone for text messages with ·5·· · ··A.· ·No.··I asked him.··He didn't.··He told me that he ·5···Mr. Delgado regarding the work that was done on the ·6···doesn't have a license. ·6···Kestenbaum home? ·7·· · ··Q.· ·And when did he tell you that? ·7·· · ··A.· ·Check my phone regarding? ·8·· · ··A.· ·When did he tell me that? ·8·· · ··Q.· ·Have you checked your phone, your cell phone, for ·9·· · ··Q.· ·Yeah. ·9···text messages with Mr. Delgado regarding the work that was 10·· · ··A.· ·He told me when -- a couple of years ago, I would 10···done on the Kestenbaum home? 11···say.··You know, I got to know him.··I seen his work and 11·· · ··A.· ·Depends.··Regarding what specific?··I don't 12···stuff.··He did work for me. 12···understand what you mean. 13·· · ··Q.· ·So he worked with you on other projects prior to 13·· · · · · · · ··MR. STRAUGHN:··When we spoke a few weeks ago 14···him -- 14···to do the discovery responses, and you searched through 15·· · ··A.· ·Some other projects, basic, yes. 15···your phone for e-mails regarding the Kestenbaum house, as 16·· · ··Q.· ·And, Mr. Syla, I know that it's hard to get in 16···the request asks, did you find any with D&M? 17···the habit for you -- 17·· · · · · · · ··THE WITNESS:··No.··Delgado he's asking. 18·· · ··A.· ·I'm sorry. 18·· · · · · · · ··MR. STRAUGHN:··Oh, I'm sorry, with Delgado. 19·· · ··Q.· ·--··but let me finish the question, please. 19·· · · · · · · ··THE WITNESS:··No, I didn't find. 20·· · · · · · · ··So you worked with him on other projects 20·· · · · · · · ··MR. STRAUGHN:··I'm sorry.··I'm trying to 21···prior to the work that he did on the Kestenbaum home, 21···help. 22···right? 22·· · · · · · · ··MR. HERNANDEZ:··That's all right. 23·· · ··A.· ·Yes. 23·· · ··Q.· ·BY MR. HERNANDEZ:··So you didn't look? 24·· · ··Q.· ·And prior to the work that he did on the 24·· · ··A.· ·No, I didn't look as far as Delgado. 25···Kestenbaum home, he told you that he did not have a 25·· · ··Q.· ·Do you exchange e-mails with Mr. Delgado?

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·1···license with the Registrar of Contractors, right? ·1·· · ··A.· ·No. ·2·· · ··A.· ·Well, I know he didn't have a license. ·2·· · ··Q.· ·About work? ·3·· · ··Q.· ·Before he did work on the Kestenbaum home, right? ·3·· · ··A.· ·No. ·4·· · ··A.· ·Yes. ·4·· · ··Q.· ·So it would be through text messages? ·5·· · ··Q.· ·Did you ever ask Mr. Delgado if he has any ·5·· · ··A.· ·No, through phone or texts. ·6···insurance coverage to cover the work that he did for you? ·6·· · ··Q.· ·So let me just try to clarify, because I don't ·7·· · ··A.· ·I don't remember that.··I don't recall that. ·7···know if it's clear.··Did you check your phone for text ·8·· · ··Q.· ·Do you have any agreements with Mr. Delgado for ·8···messages with Mr. Delgado about work that was done on the ·9···the work that he does for you and the company? ·9···Kestenbaum home? 10·· · ··A.· ·Not in writing. 10·· · ··A.· ·No, I didn't as far as Delgado, because I know -- 11·· · ··Q.· ·Do you have Mr. Delgado's cell phone number? 11···what am I looking for?··I know that there was not much 12·· · ··A.· ·I do. 12···there to look. 13·· · ··Q.· ·And what's his cell phone number? 13·· · ··Q.· ·Okay.··So what I'm hearing you say, Mr. Syla, is 14·· · ··A.· ·(602) 448-5646. 14···that you didn't think that there would be much there, so 15·· · ··Q.· ·5646? 15···you didn't look? 16·· · ··A.· ·Uh-huh, yes. 16·· · ··A.· ·No, I didn't.··Yes, I didn't look.··I didn't 17·· · ··Q.· ·When was the last time you exchanged text 17···look. 18···messages with Mr. Delgado? 18·· · ··Q.· ·Okay.··Who is -- 19·· · ··A.· ·When is the last time? 19·· · ··A.· ·Because regarding Kestenbaum, I didn't have 20·· · ··Q.· ·Yes. 20···anything to talk to him about it through texts. 21·· · ··A.· ·Recently.··A few days ago. 21·· · ··Q.· ·Okay. 22·· · ··Q.· ·So he's somebody that you're still using to 22·· · ··A.· ·And that's how I remember it, so I didn't. 23···perform plumbing work for you and the company? 23·· · ··Q.· ·So Mr. Delgado did plumbing work on the 24·· · ··A.· ·Yes, on basic stuff, yeah.··I trust him.··He did 24···Kestenbaum home; is that right? 25···many work for me. 25·· · ··A.· ·Yes.

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·1·· · ··Q.· ·And you don't have anything in writing that shows ·1·· · ··Q.· ·Okay.··Now how far back do your text messages ·2···what work Mr. Delgado was supposed to do on the Kestenbaum ·2···with Mr. Delgado go? ·3···home? ·3·· · ··A.· ·How far back? ·4·· · ··A.· ·During the work at that time, yes. ·4·· · ··Q.· ·Do they go to September 2021 -- or we're at ·5·· · ··Q.· ·You did? ·5···October.··How far back do they go? ·6·· · ··A.· ·Yes, of course.··I texted during the work when I ·6·· · ··A.· ·Okay.··They go back to September 29th. ·7···did the Kestenbaum. ·7·· · ··Q.· ·And that's as far back as your text messages go? ·8·· · ··Q.· ·So you did have text messages with Mr. Delgado ·8·· · ··A.· ·Yeah, no more. ·9···about the work that was done on the Kestenbaum home; is ·9·· · ··Q.· ·Had you gone through this exercise before today, 10···that right? 10···Mr. Syla?··Had you gone through your phone to go back into 11·· · ··A.· ·Yes, during that time.··Yes, yes. 11···your text message history with Mr. Delgado to look for 12·· · ··Q.· ·Okay. 12···text messages regarding the work that was done on the 13·· · ··A.· ·Okay. 13···Kestenbaum home?··Had you done that before today? 14·· · ··Q.· ·Where are the text messages? 14·· · ··A.· ·Like this, no. 15·· · ··A.· ·I have to look through the phone.··I have to find 15·· · ··Q.· ·Why not? 16···it. 16·· · ··A.· ·Because I remember we didn't talk through the 17·· · ··Q.· ·Take a minute to do that, please. 17···phone -- through the text.··We talked through the phone. 18·· · ··A.· ·It will take forever, probably, but ... 18···And, at that time, Kestenbaum didn't allow me to come 19·· · ··Q.· ·Mr. Syla, I know that you're looking through your 19···check for the problem, so we didn't go no further.··I 20···phone for text messages with Mr. Delgado. 20···remember. 21·· · ··A.· ·Yes. 21·· · · · · · · ·· We didn't go no further with Delgado 22·· · ··Q.· ·Do you have any text messages that go back to 22···regarding the problem, because he asked me:··I'll be there 23···September of 2021 with Mr. Delgado? 23···in the morning. 24·· · ··A.· ·That's what I'm trying to find out, but I don't 24·· · · · · · · ·· Kestenbaum didn't allow to check if it was 25···think it goes that further. 25···our problem or not.

Page 26 Page 28 ·1·· · ··Q.· ·Okay.··Well, how far back can you go? ·1·· · ··Q.· ·Yeah.··I'm not asking about whether you were ·2·· · ··A.· ·I'm trying to see how far, because it's loading. ·2···allowed to check if it was your problem or not. ·3·· · ··Q.· ·Okay.··I have an iPhone too, so I'm familiar with ·3·· · · · · · · ··The only thing I'm asking about right now is ·4···the functions.··It takes a minute, yeah. ·4···what you did to look for text messages with Delgado about ·5·· · ··A.· ·I'm running through those.··It's loading. ·5···the work that was done on the Kestenbaum home. ·6·· · ··Q.· ·How far back have you gone? ·6·· · ··A.· ·Okay. ·7·· · ··A.· ·November 18th. ·7·· · ··Q.· ·And your testimony, as far as I understand, is ·8·· · ··Q.· ·Of 2021? ·8···that before today, before the last ten minutes, you never ·9·· · ··A.· ·November 18th of 2022, I believe.··'21.··'21, ·9···took the time to review your text messages with Delgado to 10···yeah. 10···see if there were any text messages regarding the work on 11·· · ··Q.· ·So almost there? 11···the Kestenbaum home; is that right? 12·· · ··A.· ·Almost there.··One minute.··Okay.··It went back 12·· · ··A.· ·With Delgado, no.··Yeah, that's right, basically 13···and not much of a conversation that I have.··October 10th 13···what you're saying. 14···I forward the e-mail to him regarding Ken, that he had 14·· · ··Q.· ·So before I forget, Mr. Syla, I'm going to ask 15···issues with that.··And then we talked on the phone from 15···that after the deposition today concludes, that you work 16···that.··And from that time, I have no access to go look if 16···with your attorney to review all the text messages on your 17···it was our problem or not. 17···cell phone to see if there's anything else regarding the 18·· · ··Q.· ·Okay.··So you have a text message from him on 18···Kestenbaum home with any of the subcontractors that 19···October 10th? 19···performed work on the home, okay? 20·· · ··A.· ·From him, no.··From me that I send it to him from 20·· · ··A.· ·Okay. 21···October 10th. 21·· · ··Q.· ·Who is Joel Sandoval? 22·· · ··Q.· ·Okay. 22·· · ··A.· ·Drywall guy, drywall. 23·· · ··A.· ·And I forwarded what Kestenbaum told me, and then 23·· · ··Q.· ·Is he one of the subcontractors that you use? 24···I believe he called me at that time because I have no text 24·· · ··A.· ·Yeah, one of them. 25···from him back. 25·· · ··Q.· ·Is he registered with the Registrar of

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 8 (Pages 29-32) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 29 Page 31 ·1···Contractors? ·1···time. ·2·· · ··A.· ·I'm not -- I didn't ask him.··I'm not sure of ·2·· · ··Q.· ·Do you have a cell phone for Ben? ·3···that. ·3·· · ··A.· ·For Ben, (480) 787-7703. ·4·· · ··Q.· ·How long did -- ·4·· · ··Q.· ·787 -- ·5·· · ··A.· ·N&E it covers -- my license covers as far as ·5·· · ··A.· ·7703. ·6···drywall. ·6·· · ··Q.· ·Okay.··And the last name for Ben is M-a-r-v-e-s? ·7·· · ··Q.· ·Okay. ·7·· · ··A.· ·Yes, that's what I have. ·8·· · ··A.· ·Yeah. ·8·· · ··Q.· ·Okay.··And having even seen his phone number in ·9·· · ··Q.· ·How long have you worked with Mr. Sandoval? ·9···your cell phone, Mr. Syla, does that refresh your 10·· · ··A.· ·Back and forth.··I've known him for three years. 10···recollection at all as to who Ben is and what work, if 11···The same, three, four years. 11···any, Ben did on the Kestenbaum home? 12·· · ··Q.· ·And you mentioned that your license covers the 12·· · ··A.· ·I -- I'm not sure if he did some, because I 13···drywall, right? 13···have -- it's been a while.··I have employees, so I don't 14·· · ··A.· ·Well, my license cover most of it, everything. 14···remember as far as right now.··I can look more further, 15···You know, like GC, but, yeah. 15···but ... 16·· · ··Q.· ·Is it your opinion that your license also covers 16·· · ··Q.· ·Who is Isaac Reyes? 17···Mr. Delgado? 17·· · ··A.· ·Isaac Reyes is tile installer. 18·· · ··A.· ·As far as minor plumbing, yes. 18·· · ··Q.· ·Another subcontractor? 19·· · ··Q.· ·Was the plumbing that was done on the Kestenbaum 19·· · ··A.· ·Yeah, tile that he does. 20···home minor plumbing? 20·· · ··Q.· ·What's Mr. Reyes' cell phone number? 21·· · ··A.· ·I would say, yeah, minor and basic.··Nothing -- 21·· · ··A.· ·(623) 999-3840. 22···nothing underground or nothing extremely -- but my license 22·· · ··Q.· ·How long have you worked with Mr. Reyes? 23···cover some of that. 23·· · ··A.· ·A couple of years. 24·· · ··Q.· ·Is there a certain dollar threshold that is used 24·· · ··Q.· ·You worked with him on projects prior to the work 25···to determine whether plumbing work is minor versus major? 25···on the Kestenbaum home?

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·1·· · ··A.· ·I'm not sure.··I'm not sure.··I don't know what ·1·· · ··A.· ·Yes. ·2···to tell you on that. ·2·· · ··Q.· ·And do you know if he has a license with the ·3·· · ··Q.· ·But, in your opinion, the work that Mr. Delgado ·3···Registrar of Contractors? ·4···did was minor and did not require a separate license; is ·4·· · ··A.· ·I'm not sure. ·5···that right? ·5·· · ··Q.· ·Who is C. Pacheco Lazzo? ·6·· · ··A.· ·I'm not saying that.··I'm not saying that. ·6·· · ··A.· ·Cain Pacheco. ·7·· · ··Q.· ·Okay.··What is Mr. Sandoval's cell number? ·7·· · ··Q.· ·And how do you spell Cain? ·8·· · ··A.· ·(602) 394-7135. ·8·· · ··A.· ·C-a-i-n. ·9·· · ··Q.· ·Prior to today, have you searched your cell phone ·9·· · · · · · · ··THE REPORTER:··Can you spell Lazzo, please? 10···for text messages with Mr. Sandoval about the work that 10·· · · · · · · ··THE WITNESS:··L-a-z-o. 11···was performed on the Kestenbaum home? 11·· · · · · · · ··MR. HERNANDEZ:··I have it as L-a-z-z-o. 12·· · ··A.· ·I'm sorry.··With Joel Sandoval, with Sandoval? 12·· · · · · · · ··THE WITNESS:··L-a-z-z-o. 13·· · ··Q.· ·Yes. 13·· · ··Q.· ·BY MR. HERNANDEZ:··And who is Mr. Lazzo? 14·· · ··A.· ·I looked at it, but I didn't find anything. 14·· · ··A.· ·He was just handy employer -- handy sub.··He did 15·· · ··Q.· ·Okay.··And, again, I'm going to ask you to please 15···some baseboards, touchups, as I remember, at Kestenbaum. 16···after this concludes, that you're going to work with your 16·· · ··Q.· ·How do you pay your subcontractors?··Do you pay 17···attorney to make sure there are no text messages with Mr. 17···them cash or check? 18···Sandoval regarding the work on the Kestenbaum home, okay? 18·· · ··A.· ·Check, 1099. 19·· · ··A.· ·Okay. 19·· · ··Q.· ·Okay.··Do you have 1099s for the money that you 20·· · ··Q.· ·Who is Ben Marves? 20···paid all of these subcontractors in 2021? 21·· · ··A.· ·Ben Marves, an employee.··Ben Marves. 21·· · ··A.· ·I have, yeah, 1099, W-9s, most of them, yeah. 22·· · ··Q.· ·I'm asking his name -- 22·· · ··Q.· ·And aside from the W-9s and the 1099s, I think 23·· · ··A.· ·It's been a long time, so ... 23···you answered the question, but let me clarify. 24·· · ··Q.· ·Okay. 24·· · · · · · · ··Do you pay them with cash or check? 25·· · ··A.· ·Ben Marves.··I did give some -- it's been a long 25·· · ··A.· ·I write them a check, usually.

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·1·· · ··Q.· ·Is that a personal check or a check from N&E? ·1·· · ··Q.· ·Do you do all of payroll and accounting? ·2·· · ··A.· ·From N&E, N&E. ·2·· · ··A.· ·Uh-huh, yes. ·3·· · ··Q.· ·Okay.··Okay.··What's the process you have, ·3·· · ··Q.· ·Did you have any discussion with Mr. Delgado ·4···Mr. Syla, for issuing the payments?··So what I'm trying to ·4···before he did the work about who would be responsible if ·5···find out is, does Delgado, for example, send you an ·5···work was done poorly or needs repairs? ·6···invoice, or does he send you a text saying:··This is what ·6·· · ··A.· ·No. ·7···I'm owed for this work?··Or how do you negotiate that or ·7·· · ··Q.· ·Did you discuss with Mr. Sandoval before he ·8···what is your process? ·8···started work on the project who would be responsible if ·9·· · ··A.· ·Mostly word to word. ·9···work was done poorly or needed repairs? 10·· · ··Q.· ·Mostly? 10·· · ··A.· ·No, because I've seen -- I've worked with him 11·· · ··A.· ·Word to word.··Some word to words.··Some with 11···before.··I wasn't going to hire somebody that -- you know, 12···invoices. 12···no.··I've seen their work. 13·· · ··Q.· ·So it just depends on the project? 13·· · ··Q.· ·So you're assuming responsibility if they don't 14·· · ··A.· ·Depends on the project.··Depends on the 14···do good work?··Are you assuming responsibility for the 15···relationship that you have with the person. 15···work that the subcontractors do if they don't do good 16·· · ··Q.· ·Okay. 16···work? 17·· · ··A.· ·Yeah. 17·· · ··A.· ·Well, yeah.··I'm the GCL.··I take the 18·· · ··Q.· ·Have you looked for any invoices from any of 18···responsibility.··They don't, of course. 19···these contractors for work that was done on the Kestenbaum 19·· · ··Q.· ·I'm going to show you what we're going to mark as 20···home? 20···Exhibit Number 1. 21·· · ··A.· ·I looked.··I looked.··I looked.··I wasn't able to 21·· · · · · · · ··(Deposition Exhibit Number 1 was marked for 22···find.··Especially I looked for DM (sic) and I will look 22···identification.) 23···furthermore to try to find invoices. 23·· · ··Q.· ·BY MR. HERNANDEZ:··If you could take a moment and 24·· · ··Q.· ·Aside from your text messages, where would you 24···review this document, Mr. Syla, and let me know if this is 25···look for invoices from Delgado, Marves, Reyes or Lazzo? 25···a document that you have seen before today.

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·1···Where would you look for those invoices? ·1·· · ··A.· ·Review documents.··This is the first time that I ·2·· · ··A.· ·Those, they won't be e-mails. ·2···see with all of the names, yeah. ·3·· · ··Q.· ·They will not be e-mails? ·3·· · ··Q.· ·And? ·4·· · ··A.· ·No, no.··They will not be e-mails. ·4·· · ··A.· ·They all look the same, but, yeah, I looked at ·5·· · ··Q.· ·Do they ever provide you with paper copies of ·5···the names. ·6···invoices? ·6·· · ··Q.· ·You're referring to the names on Page 4? ·7·· · ··A.· ·No. ·7·· · ··A.· ·Yes, yeah.··This person. ·8·· · ··Q.· ·Handwritten notes of invoices? ·8·· · ··Q.· ·And have you verified, Mr. Syla, that the ·9·· · ··A.· ·No. ·9···responses included in this document are true and correct? 10·· · ··Q.· ·If they incur expenses for materials, how do they 10·· · ··A.· ·Yes. 11···communicate that to you? 11·· · ··Q.· ·I'm going to ask you to turn to Page 4 of 12·· · ··A.· ·With materials? 12···Exhibit 1, and if you go to the first interrogatory, 13·· · ··Q.· ·If the contractors have to buy extra materials to 13···Non-Uniform Interrogatory Number 1, about halfway down the 14···do the work, how does that get communicated to you? 14···page, do you see that, Mr. Syla? 15·· · · · · · · ··MR. STRAUGHN:··Form and foundation. 15·· · ··A.· ·Non-Uniform, Number 1, yeah.··16, 17, yeah. 16·· · · · · · · ··THE WITNESS:··Depends.··Materials usually I 16·· · ··Q.· ·Yes? 17···either provide -- they provide the labor. 17·· · ··A.· ·Yes. 18·· · ··Q.· ·BY MR. HERNANDEZ:··Okay. 18·· · ··Q.· ·So did you understand what the question was -- 19·· · ··A.· ·So they call me.··I don't know what to tell you. 19···what information it's asking you to provide? 20···They call me.··They text me. 20·· · ··A.· ·Yes. 21·· · ··Q.· ·BY MR. HERNANDEZ:··Do they send you invoices or 21·· · ··Q.· ·And why wasn't Marves -- Ben Marves included 22···receipts -- 22···initially in the first response that you provided to this 23·· · ··A.· ·No, no.··I said no. 23···question? 24·· · ··Q.· ·-- for work? 24·· · ··A.· ·I don't recall why it wasn't included. 25·· · ··A.· ·I said mostly no. 25·· · ··Q.· ·Right.

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·1·· · · · · · · ··This name was supplemented in a more -- a ·1···were at the Kestenbaum home, right? ·2···revised response on Tuesday, two days ago. ·2·· · ··A.· ·No, I don't have any records.··But I know I was ·3·· · · · · · · ··My question is:··Why wasn't he included when ·3···there daily. ·4···you first responded to this interrogatory? ·4·· · ··Q.· ·Daily or almost daily? ·5·· · ··A.· ·Well, I had to do -- to go over -- to do some ·5·· · ··A.· ·Almost daily.··Almost every day to go check. ·6···thinking and research to -- because it was a while ago. ·6·· · ··Q.· ·Okay.··How many times a week were you there? ·7···It's not the only job I had -- ·7·· · ··A.· ·Three to five days a week, when I have people ·8·· · ··Q.· ·Okay. ·8···there, of course.··But sometimes I don't need to go when ·9·· · ··A.· ·-- with Kestenbaum. ·9···there's no one there -- 10·· · · · · · · ·· So even if I find some more that I recall 10·· · ··Q.· ·Right. 11···it, I'll add it more.··But I will look further in e-mails. 11·· · ··A.· ·-- working. 12···Whatever I find -- I'm trying to put it -- to send it to 12·· · ··Q.· ·Your response to Interrogatory Number 3 states 13···my lawyer. 13···that in your absence, there was nobody else there to 14·· · ··Q.· ·Okay.··And Mr. Reyes and Mr. Lazzo, they also 14···manage or oversee the subcontractors who were doing the 15···performed work on the Kestenbaum home, right? 15···work; is that right? 16·· · ··A.· ·Yes, yes. 16·· · ··A.· ·Can you say that again, please? 17·· · ··Q.· ·So would you agree with me that they should have 17·· · ··Q.· ·Sure. 18···been identified here on Page 4 of this response to this 18·· · · · · · · ··I'm just confirming and verifying your 19···question? 19···response to Number 3. 20·· · · · · · · ··MR. STRAUGHN:··That's my error. 20·· · ··A.· ·Yeah. 21·· · · · · · · ··THE WITNESS:··Yeah, sure. 21·· · ··Q.· ·Your response to Number 3 states that you did not 22·· · · · · · · ··MR. STRAUGHN:··And for completeness' sake, 22···have anybody else on site to supervise or manage the 23···I'm happy to supplement again.··It was an oversight on my 23···subcontractors in your absence; is that right? 24···part as I was preparing the disclosure that -- the scope 24·· · ··A.· ·That's right. 25···of description documents and these, so, I'm happy to 25·· · · · · · · ··(Mr. Kestenbaum has entered the

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·1···supplement again. ·1···proceedings.) ·2·· · ··Q.· ·BY MR. HERNANDEZ:··If you could take a minute, ·2·· · · · · · · ··MR. HERNANDEZ:··We're almost at the hour, so ·3···Mr. Syla, to review the interrogatories on Page 5 of this ·3···let's take a five-minute break. ·4···document. ·4·· · · · · · · ··THE WITNESS:··Sure. ·5·· · ··A.· ·Yeah. ·5·· · · · · · · ··(A recess was taken.) ·6·· · ··Q.· ·Do you maintain an electronic calendar? ·6·· · ··Q.· ·BY MR. HERNANDEZ:··All right.··Mr. Syla, before ·7·· · ··A.· ·No. ·7···we went on our break, we were discussing your responses to ·8·· · ··Q.· ·No?··How do you keep track of which projects you ·8···the interrogatories. ·9···have going on and where you need to be on any given day? ·9·· · · · · · · ··And following up on where we left off, for 10·· · ··A.· ·In my mind. 10···the time frame that you were out of town while this 11·· · ··Q.· ·Okay.··Do you keep any record or document what 11···project was happening, where were you? 12···work sites you're visiting on any given day? 12·· · ··A.· ·Overseas. 13·· · ··A.· ·No. 13·· · ··Q.· ·And where overseas were you? 14·· · ··Q.· ·Your response to Interrogatory Number 2 says that 14·· · ··A.· ·Albania, Austria. 15···you were on site almost daily except for the dates that 15·· · ··Q.· ·When you're overseas, while there's an ongoing 16···you're out of town.··Do you see that? 16···project, how do you keep in touch, or how do you manage 17·· · ··A.· ·Which number was that? 17···the project in your absence? 18·· · ··Q.· ·Interrogatory Number 2. 18·· · ··A.· ·Usually I put on hold a lot of my -- a lot of my 19·· · ··A.· ·Yes. 19···work. 20·· · ··Q.· ·Okay. 20·· · ··Q.· ·For the work that was done on the Kestenbaum 21·· · ··A.· ·Of course. 21···home -- 22·· · ··Q.· ·And your testimony is that you don't have any 22·· · ··A.· ·Yeah. 23···record or calendar -- 23·· · ··Q.· ·-- did you put it on hold while you were gone? 24·· · ··A.· ·No. 24·· · ··A.· ·Not much was going on at that time as far as my 25·· · ··Q.· ·-- or handwritten notes that show what dates you 25···employees.

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·1·· · ··Q.· ·Did you put it on hold? ·1···first time or second time.··But, in general, I check ·2·· · ··A.· ·On hold.··Like I said, not much was going on at ·2···regarding anything with a project of Kestenbaum. ·3···that time as far as my employees. ·3·· · ··Q.· ·BY MR. HERNANDEZ:··So three weeks ago was the ·4·· · ··Q.· ·Sure.··And you're telling me not much was going ·4···first or the second time? ·5···on. ·5·· · ··A.· ·And I know that not much -- or pretty much ·6·· · · · · · · ··And my question is:··For this case and the ·6···anything wasn't going on when I was away. ·7···work that was going on on the Kestenbaum home, while you ·7·· · ··Q.· ·My question is:··How do you know that? ·8···were away in Albania, Austria -- ·8·· · ··A.· ·Because I remember that it was put on hold.··He ·9·· · ··A.· ·Yes. ·9···was waiting for materials and we didn't do much work at 10·· · ··Q.· ·-- did you stop the work that your contractors 10···that time. 11···and your employees were doing on the home or not? 11·· · ··Q.· ·Would you have exchanged e-mails and text 12·· · ··A.· ·I have to look back further to check on that.··I 12···messages while you were out of the country with the 13···don't recall it. 13···subcontractors who were doing work on your behalf? 14·· · ··Q.· ·How are you going to look back? 14·· · ··A.· ·No.··As far as I have to look more back in to it. 15·· · ··A.· ·I have to look back on the dates, what was going 15···But, not at that time.··I remember with Kestenbaum we 16···on at that time.··I have to put my thoughts to what was 16···exchanged. 17···going on at that time. 17·· · ··Q.· ·With Kestenbaum you exchanged? 18·· · ··Q.· ·And what are you going to do to check that? 18·· · ··A.· ·Texts. 19·· · ··A.· ·Check through my e-mail, through the phone, 19·· · ··Q.· ·With who? 20···something.··But I don't recall it exactly.··It's been a 20·· · ··A.· ·With Ken. 21···while, what was going on on that date that I was gone. 21·· · ··Q.· ·Okay.··I'm just asking about your text messages 22·· · ··Q.· ·And you haven't checked for that before today? 22···with your subcontractors and your employees. 23···You haven't checked to see -- 23·· · ··A.· ·I didn't find anything.··I have to look more in 24·· · ··A.· ·I checked.··I checked.··But I wasn't able to 24···to it as far as that time. 25···find.··Like I said, I checked, but I wasn't able to find 25·· · ··Q.· ·I'm going to ask you to turn your attention to

Page 42 Page 44 ·1···enough evidence. ·1···Page Number 6 and the interrogatories.··Take a minute to ·2·· · ··Q.· ·You checked what? ·2···review the Interrogatory Number 5, Mr. Syla, and let me ·3·· · ··A.· ·I checked through the phone and through the ·3···know when you're done. ·4···e-mails. ·4·· · ··A.· ·Okay. ·5·· · ··Q.· ·When did you check through your phone and your ·5·· · ··Q.· ·Okay.··Did you understand, Mr. Syla, that one of ·6···e-mails? ·6···the things that this interrogatory was asking you to do ·7·· · ··A.· ·When my lawyer was asking for anything regarding ·7···was to provide an approximate start date and completion ·8···Kestenbaum. ·8···date for each work item or tasks that your subcontractors ·9·· · ··Q.· ·And remember I'm not asking about conversations ·9···and employees did on the Kestenbaum home? 10···with your attorney.··I'm just asking about dates.··When -- 10·· · ··A.· ·Yes. 11·· · ··A.· ·A few weeks ago. 11·· · ··Q.· ·Okay.··And do you believe that you've done that 12·· · ··Q.· ·A few weeks ago? 12···yet? 13·· · ··A.· ·Yeah, a few weeks ago. 13·· · ··A.· ·I've looked at it.··I gave info, whatever I 14·· · ··Q.· ·And that's the first time that you -- 14···found. 15·· · ··A.· ·Three or four weeks ago. 15·· · ··Q.· ·Okay.··Going down to Interrogatory Number 6, did 16·· · ··Q.· ·Is that the first time that you looked for 16···you understand what that interrogatory was asking you for? 17···anything to see what was going on while you were in 17·· · ··A.· ·Yeah. 18···Albania and Austria? 18·· · ··Q.· ·And what do you understand that interrogatory was 19·· · ··A.· ·The first time? 19···asking you for? 20·· · ··Q.· ·Was three weeks ago the first time that you 20·· · ··A.· ·To provide the cost for each items. 21···checked your e-mails or text messages to figure out what 21·· · ··Q.· ·And do you believe that you've done that? 22···was going on on the project while you were out of the 22·· · ··A.· ·I believe so, whatever I found, yeah. 23···country? 23·· · ··Q.· ·All right.··I'm going to show you another 24·· · · · · · · ··MR. STRAUGHN:··Form. 24···document here.··We are going to mark this as 25·· · · · · · · ··THE WITNESS:··I don't recall it.··It was my 25···Exhibit Number 2.

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·1·· · · · · · · ··(Deposition Exhibit Number 2 was marked for ·1···as Exhibit Number 3. ·2···identification.) ·2·· · · · · · · ··(Deposition Exhibit Number 3 was marked for ·3·· · ··Q.· ·BY MR. HERNANDEZ:··Do you recognize this ·3···identification.) ·4···document? ·4·· · ··Q.· ·BY MR. HERNANDEZ:··Mr. Syla, are these invoices, ·5·· · ··A.· ·Yes. ·5···Exhibit Number 3 -- the document here reflected as ·6·· · ··Q.· ·Did you prepare this document? ·6···Exhibit Number 3, are these invoices that were used to -- ·7·· · ··A.· ·Yes. ·7·· · ··A.· ·Yes. ·8·· · ··Q.· ·Did anybody assist you with preparing this ·8·· · ··Q.· ·-- compile the information here on ·9···document? ·9···Exhibit Number 2? 10·· · ··A.· ·No. 10·· · ··A.· ·Yes, yes. 11·· · · · · · · ··MR. STRAUGHN:··I helped him. 11·· · ··Q.· ·Any other invoices other than what's here in 12·· · · · · · · ··MR. HERNANDEZ:··Okay. 12···Exhibit Number 3? 13·· · · · · · · ··MR. STRAUGHN:··He gave me the information -- 13·· · ··A.· ·No, this is it. 14·· · · · · · · ··THE WITNESS:··Information. 14·· · ··Q.· ·Okay.··So the only -- 15·· · · · · · · ··MR. STRAUGHN:··-- and I typed it up like 15·· · ··A.· ·Yeah, from this to this. 16···this. 16·· · ··Q.· ·So the only documents that were used to fill in 17·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··Did you review any 17···the information in Exhibit Number 2 are the invoices -- 18···documents?··Did you gather the information reflected in 18·· · ··A.· ·Yeah, from the invoices. 19···this document by reviewing other documents?··Let me strike 19·· · ··Q.· ·-- are the invoices from Exhibit Number 3, right? 20···that. 20·· · ··A.· ·Yeah. 21·· · · · · · · ··What documents did you rely on, Mr. Syla, to 21·· · ··Q.· ·Okay.··And your Document Number -- 22···compile the information reflected here in this document, 22···Exhibit Number 2, the first column, what is the first 23···Exhibit Number 2? 23···column -- under Activity, what information is in that 24·· · · · · · · ··MR. STRAUGHN:··Form. 24···first column? 25·· · · · · · · ··THE WITNESS:··Forms and I know what happened 25·· · ··A.· ·Kitchen.

Page 46 Page 48 ·1···on the job myself.··I know.··I went. ·1·· · ··Q.· ·Generally speaking, is that a list of all of the ·2·· · ··Q.· ·BY MR. HERNANDEZ:··What forms? ·2···tasks that were done on the project -- ·3·· · ··A.· ·Well, I know what got done and what didn't get ·3·· · ··A.· ·Yeah. ·4···done.··So I don't know which documents you're relating, ·4·· · ··Q.· ·-- or that were supposed to be done on the ·5···because I was involved. ·5···project? ·6·· · ··Q.· ·Did you use or rely on any documents -- ·6·· · ··A.· ·That were supposed to be done.··It's marked there ·7·· · ··A.· ·No, not as far as this. ·7···Complete. ·8·· · · · · · · ··MR. STRAUGHN:··Form. ·8·· · ··Q.· ·Okay.··So the first column is everything that was ·9·· · · · · · · ··Go ahead and answer. ·9···supposed to be done on the project, right? 10·· · · · · · · ··THE WITNESS:··Not that I -- 10·· · ··A.· ·Yeah. 11·· · · · · · · ··MR. STRAUGHN:··Go ahead and answer. 11·· · ··Q.· ·And the second column complete by 4-22-21? 12·· · · · · · · ··What I did -- I'll explain to you how this 12·· · ··A.· ·Yeah. 13···document was created, is that I took the items that were 13·· · ··Q.· ·That column indicates what? 14···on the invoices -- 14·· · ··A.· ·The second column? 15·· · · · · · · ··THE WITNESS:··Yeah. 15·· · ··Q.· ·The second column. 16·· · · · · · · ··MR. STRAUGHN:··-- and I made this chart 16·· · ··A.· ·Indicates of what was completed by that date. 17···based on those items. 17·· · ··Q.· ·Okay.··So if I understand you correctly, under 18·· · · · · · · ··And then Mr. Syla went back and told me 18···the second column, if there's an X next to the work item, 19···which items were complete by a certain date. 19···that is the date that you're telling us that the work was 20·· · · · · · · ··THE WITNESS:··Yeah. 20···completed; is that correct? 21·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··So the invoices that 21·· · ··A.· ·Yes. 22···counsel is referring to, Mr. Syla, do you know what he 22·· · · · · · · ··MR. STRAUGHN:··Form. 23···meant when he referred to the "invoices"? 23·· · ··Q.· ·BY MR. HERNANDEZ:··And then the third column, if 24·· · ··A.· ·Yes, yes. 24···I'm following your testimony, if a work item has an X next 25·· · ··Q.· ·Okay.··I will show you what we're going to mark 25···to it under the Complete by 7-26-21 date, is it your

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·1···testimony that those items were completed by 7-26-21? ·1···document -- ·2·· · ··A.· ·Yes. ·2·· · · · · · · ··MR. HERNANDEZ:··Hey, still, Terry, we can do ·3·· · ··Q.· ·Now, Mr. Syla, going back to our ·3···it off the record.··Please, let me get an answer. ·4···Interrogatory Number 5, Exhibit Number 1, you testified a ·4·· · · · · · · ··THE WITNESS:··This was related to this. ·5···minute ago you understood that the interrogatory was ·5·· · ··Q.· ·BY MR. HERNANDEZ:··I'm sorry? ·6···requesting information regarding both the start date for ·6·· · ··A.· ·Okay.··This was related to this invoice. ·7···each work item and the completion date for each work item. ·7·· · ··Q.· ·Okay. ·8···Do you remember that testimony? ·8·· · ··A.· ·So whatever was in this invoice, then we kind of ·9·· · ··A.· ·Yeah. ·9···broke it down. 10·· · ··Q.· ·Okay.··This only has a completion date, 10·· · ··Q.· ·Okay.··Now, in Exhibit Number 3, which are the 11···Exhibit Number 2? 11···two invoices you used to compile and put information into 12·· · ··A.· ·Yeah. 12···Exhibit Number 2, where does it reflect the work that was 13·· · ··Q.· ·So do you know when these work items were started 13···done, the plumbing work that was done for the water lines 14···and how long it took to complete each work item? 14···connecting the washing machines to the plumbing? 15·· · ··A.· ·Not exactly the date; not exactly the date. 15·· · ··A.· ·I have to look further to find that.··I looked 16·· · ··Q.· ·Do you have any records or documents that show 16···and I have to look further to find regarding that. 17···when each work item was started and completed? 17·· · ··Q.· ·I'm going to show you what we are going to mark 18·· · ··A.· ·I couldn't find any documents regarding that. 18···as Exhibit Number 4 to your deposition. 19·· · ··Q.· ·Did you look before today? 19·· · · · · · · ··(Deposition Exhibit Number 4 was marked for 20·· · ··A.· ·I looked.··I looked. 20···identification.) 21·· · ··Q.· ·When did you look before today? 21·· · ··Q.· ·BY MR. HERNANDEZ:··Take a minute to review 22·· · ··A.· ·I looked a few weeks ago, like I said, for any 22···Exhibit Number 4, Mr. Syla, and let me know when you're 23···documents regarding work. 23···done. 24·· · ··Q.· ·Okay.··And this Exhibit Number 2, Mr. Syla, can 24·· · ··A.· ·Okay. 25···you tell me where it reflects the water lines in the 25·· · ··Q.· ·Have you seen this document before today?

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·1···laundry room and when that work was done? ·1·· · ··A.· ·Yes. ·2·· · ··A.· ·I don't see it. ·2·· · ··Q.· ·Did you review this document to make sure that ·3·· · ··Q.· ·I'm sorry? ·3···the responses in here were true and accurate? ·4·· · ··A.· ·Exhibit 2? ·4·· · ··A.· ·Yes. ·5·· · ··Q.· ·In Exhibit 2. ·5·· · ··Q.· ·When did you first see the requests for documents ·6·· · ··A.· ·I don't see it here in Exhibit 2. ·6···that we served on your attorneys in this case? ·7·· · ··Q.· ·All right.··So just to confirm in Exhibit 2, ·7·· · ··A.· ·Four weeks ago, was it?··Four weeks ago.··Three, ·8···there's no reference to the water lines for the washing ·8···four weeks. ·9···machines; is that right? ·9·· · ··Q.· ·About four weeks ago? 10·· · ··A.· ·No.··Yeah, that's right.··That's right. 10·· · ··A.· ·Four, five weeks, something like that. 11·· · ··Q.· ·Your subcontractor or your employees did that 11·· · ··Q.· ·Let me go through each of these, Mr. Syla, just 12···work, though, right? 12···to make sure you understood what was being sought through 13·· · ··A.· ·Yes. 13···these discovery requests. 14·· · ··Q.· ·They installed the plumbing for the washing 14·· · · · · · · ··If you turn to Page 4, and, if you could 15···machines and installed the water lines connecting the 15···please review Request Number 1 at the bottom of Page 4. 16···plumbing to the washing machines, right? 16·· · ··A.· ·Yeah. 17·· · ··A.· ·Yes. 17·· · ··Q.· ·Do you understand what that request is asking 18·· · ··Q.· ·But that work is not reflected in 18···for? 19···Exhibit Number 2? 19·· · ··A.· ·Yeah. 20·· · ··A.· ·No, it's not reflected. 20·· · ··Q.· ·And what do you understand this request to be 21·· · ··Q.· ·And can you give me any reason or explanation for 21···asking for? 22···why it's not reflected in Exhibit Number 2, Mr. Syla? 22·· · ··A.· ·I'm reading this.··All employees and 23·· · · · · · · ··MR. STRAUGHN:··I can explain. 23···subcontractors defendant referring to related work 24·· · · · · · · ··MR. KESTENBAUM:··You're not being deposed. 24···performed to Kestenbaum. 25·· · · · · · · ··MR. STRAUGHN:··Since I helped create the 25·· · ··Q.· ·Did you understand that you were supposed to look

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·1···for and provide any and all agreements that you and N&E ·1···regarding this.··Even if there's nothing, I'll send it. ·2···had with any of the subcontractors? ·2···But when there's nothing regarding the project, I don't ·3·· · ··A.· ·Yes.··You asked me that question before. ·3···think that I'm supposed to send any information. ·4·· · ··Q.· ·Yeah.··And you've looked for -- ·4·· · ··Q.· ·If you look at Request Number 3, Mr. Syla, what ·5·· · ··A.· ·I looked for. ·5···did you understand us to be asking you to look for and ·6·· · ··Q.· ·-- anything that would constitute an agreement ·6···produce in this case? ·7···with any of the subcontractors, right? ·7·· · ··A.· ·Yeah, I understand. ·8·· · ··A.· ·Yes. ·8·· · ··Q.· ·Okay.··What did you understand Request Number 3 ·9·· · ··Q.· ·And you didn't find any, right? ·9···to ask you to give us in terms of documents? 10·· · ··A.· ·Well, yeah.··I looked and I found whatever I 10·· · ··A.· ·Cost reports, profit/loss statements. 11···could.··Whatever I didn't find, I didn't find. 11·· · ··Q.· ·Any expenses that you incurred on the project, 12·· · ··Q.· ·But you didn't look until five weeks ago, right? 12···any money that you paid out to anyone for work on the 13·· · · · · · · ··MR. STRAUGHN:··Form. 13···project, right? 14·· · · · · · · ··THE WITNESS:··Five weeks ago? 14·· · ··A.· ·Yeah. 15·· · ··Q.· ·BY MR. HERNANDEZ:··When you said that you first 15·· · ··Q.· ·Okay.··And do you have anything that shows what 16···received a copy of our requests for documents, you said 16···was paid out, any expenses, any materials that were 17···about four weeks ago -- 17···purchased on the project?··Do you have any of those 18·· · ··A.· ·Yeah. 18···documents? 19·· · ··Q.· ·-- right? 19·· · ··A.· ·I don't. 20·· · ··A.· ·When you requested for this, I looked further. 20·· · ··Q.· ·Why not? 21·· · ··Q.· ·Okay.··If you look at Request Number 2 on Page 5, 21·· · ··A.· ·Because I don't.··I didn't keep track. 22···what is your understanding of what we were asking you to 22·· · · · · · · ··MR. KESTENBAUM:··He can tell that to the 23···produce -- look for and produce with respect to 23···jury.··Perfect. 24···Request Number 2? 24·· · · · · · · ··THE WITNESS:··Most of the material was 25·· · ··A.· ·Any communication with employees regarding 25···purchased by Kestenbaum.

Page 54 Page 56 ·1···Kestenbaum project. ·1·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··So is it your testimony ·2·· · ··Q.· ·Okay.··E-mails and text messages included, right? ·2···that you didn't purchase any materials? ·3·· · ··A.· ·Yes. ·3·· · ··A.· ·I didn't say that. ·4·· · ··Q.· ·And that's something that you started to do -- or ·4·· · ··Q.· ·Okay. ·5···did four weeks ago for the first time? ·5·· · ··A.· ·Finished products, rough-in materials we ·6·· · ··A.· ·Like I said, yes. ·6···purchased. ·7·· · ··Q.· ·Okay.··But you hadn't looked for text messages ·7·· · ··Q.· ·Okay. ·8···with Mr. Delgado before today, right? ·8·· · ··A.· ·We call it rough-in. ·9·· · ··A.· ·Well, that was one of them, Delgado.··But I ·9·· · ··Q.· ·Okay. 10···looked the most I could regarding the project.··I looked 10·· · ··A.· ·But I don't have those as far as separate, like, 11···through e-mails, through employees and wherever I thought 11···you asked for material separations. 12···that I exchanged texts, I went back.··And I found whatever 12·· · ··Q.· ·And what would you do after you left here today 13···I could found, which I didn't find much because it was a 13···to look for copies of any invoices or expenses for any of 14···while ago. 14···the rough-in materials that you had to purchase to do the 15·· · ··Q.· ·Did you know four weeks ago that you were 15···work on the Kestenbaum project? 16···supposed to look for text messages with any of the 16·· · ··A.· ·And what is your question? 17···subcontractors who did work on the house? 17·· · ··Q.· ·If you were to leave here today to look for 18·· · ··A.· ·I know and I did. 18···documents, invoices, receipts -- 19·· · ··Q.· ·Okay.··So how come earlier today you testified 19·· · ··A.· ·If I find, I'll provide. 20···that you had not gone back to your text messages with 20·· · ··Q.· ·Where would you look? 21···Delgado in September of 2021 until we did it an hour ago? 21·· · ··A.· ·E-mails or texts or e-mails that others subs -- 22·· · ··A.· ·Which, as you saw, I didn't find much in there. 22···if they sent me an invoice.··I looked, but I didn't find 23···I looked, but I didn't find any exchange regarding ... 23···any regarding this materials. 24···even if there's nothing there, if you want me just to send 24·· · ··Q.· ·So is that something that you still need to do? 25···texts, I'll do more.··I'll research more into this 25···It doesn't sound like you've done a good job of doing that

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·1···so far.··Is that something that you still need to do? ·1·· · ··A.· ·Yeah, the empty boxes are the work that is not ·2·· · · · · · · ··MR. STRAUGHN:··Form. ·2···completed. ·3·· · · · · · · ··THE WITNESS:··I did look and I was able -- I ·3·· · ··Q.· ·Okay.··So let's go through that, okay? ·4···found what I was able to found. ·4·· · ··A.· ·Okay. ·5·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··Again, Mr. Syla, I'm ·5·· · ··Q.· ·Because I just got this on Tuesday. ·6···going to ask you to, please, after this deposition ·6·· · ··A.· ·Okay. ·7···concludes, to work with your counsel to make sure that you ·7·· · ··Q.· ·So let's go through Exhibit 2. ·8···do a thorough search for any documents that are responsive ·8·· · ··A.· ·Okay. ·9···to these requests.··Do you understand that? ·9·· · ··Q.· ·The first empty row that I see is "Drywall tape 10·· · ··A.· ·Okay. 10···and texture to match existing."··Do you see that? 11·· · ··Q.· ·Going back to Exhibit Number 3, Mr. Syla, is it 11·· · ··A.· ·And where? 12···your contention, your assertion, that you or your 12·· · ··Q.· ·On the first page under Kitchen. 13···subcontractors performed every single work item reflected 13·· · ··A.· ·Yes. 14···here on Exhibit Number 3? 14·· · ··Q.· ·That work was not done, right? 15·· · ··A.· ·Exhibit Number 2 shows what we performed. 15·· · ··A.· ·No, that work was not done. 16·· · ··Q.· ·Okay.··My question is on Exhibit Number 3. 16·· · ··Q.· ·And can you tell me where that line item matches 17·· · ··A.· ·Yeah -- 17···up with the work items on Exhibit 3? 18·· · ··Q.· ·These are the contracts, right? 18·· · ··A.· ·I have to look back into this, in the kitchen 19·· · ··A.· ·Yeah. 19···drywall tape and texture. 20·· · ··Q.· ·You don't have any other contracts with 20·· · · · · · · ·· What was your question? 21···Mr. Kestenbaum over the work that was done, right? 21·· · ··Q.· ·Okay.··I think I see it.··The first page, 22·· · ··A.· ·No. 22···Exhibit 3, under Kitchen, "Drywall tape and texture to 23·· · · · · · · ··MR. STRAUGHN:··Form. 23···match existing." 24·· · ··Q.· ·BY MR. HERNANDEZ:··This is it? 24·· · ··A.· ·Yeah, yeah, yeah. 25·· · ··A.· ·This is it.··And I have to look further, like I 25·· · ··Q.· ·And at least on this first page of Exhibit 3, you

Page 58 Page 60 ·1···said, regarding the laundry. ·1···have an estimate for all of that work of $8,600, right? ·2·· · ··Q.· ·Regarding the? ·2·· · ··A.· ·Yeah. ·3·· · ··A.· ·Laundry. ·3·· · ··Q.· ·And what would the value of the drywall tape and ·4·· · ··Q.· ·Okay.··Aside from the -- ·4···texture to match existing be of that $8,600 in the ·5·· · ··A.· ·Yes. ·5···contract? ·6·· · ··Q.· ·-- laundry, is it your contention that you ·6·· · ··A.· ·I will need -- I mean, for the kitchen, I would ·7···performed all of the work reflected in these two ·7···say $1,000 a part. ·8···documents, in these two invoices? ·8·· · ··Q.· ·Okay.··Now if you go to Page 2 of ·9·· · · · · · · ··MR. STRAUGHN:··Form, foundation. ·9···Exhibit Number 2. 10·· · · · · · · ··THE WITNESS:··Performed all of the work? 10·· · ··A.· ·Okay. 11·· · ··Q.· ·BY MR. HERNANDEZ:··If you look -- 11·· · ··Q.· ·At the very top of the page, Exhibit 2. 12·· · ··A.· ·The question that you're asking I don't 12·· · ··A.· ·Oh, Exhibit 2, okay. 13···understand, because you're saying "performed all of the 13·· · ··Q.· ·The top of the page you have seven work items 14···work."··This shows the work was not done.··So we didn't 14···there that don't have a box checked next to them, right? 15···perform all of the work. 15·· · ··A.· ·Yeah. 16·· · ··Q.· ·Okay.··So it's going to take a little time, but 16·· · ··Q.· ·Okay.··And I'm going to go compare that with 17···it's important that we do it before we leave here today. 17···Exhibit Number 3 under the master bathroom.··Under 18·· · · · · · · ··I need you to identify -- and you can do 18···Exhibit 3, first page, under the main heading Master 19···this on your own, and we can go off the record to give you 19···Bathroom, you also have "supply and install green drywall 20···the time to do it.··I want you to identify for me each 20···around tub."··Do you see that? 21···work item in Exhibit 3 that you and your subcontractors 21·· · ··A.· ·Yeah. 22···did not complete.··Do you understand my question? 22·· · ··Q.· ·What's the value of that work, of that work item? 23·· · ··A.· ·I understand, but ... 23·· · · · · · · ··MR. STRAUGHN:··Form, foundation. 24·· · ··Q.· ·Exhibit 2 is work that you did and completed, 24·· · · · · · · ··THE WITNESS:··I'll need more time to go over 25···right? 25···on each of these to separate all of this what would be the

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·1···value. ·1·· · ··A.· ·Of course. ·2·· · ··Q.· ·BY MR. HERNANDEZ:··What's your estimate -- ·2·· · ··Q.· ·Okay.··Was that something that your employees or ·3·· · ··A.· ·Ballpark. ·3···your subcontractors were responsible for? ·4·· · ··Q.· ·-- of what that would be? ·4·· · ··A.· ·Of course. ·5·· · ··A.· ·20, $25 per square foot, so that's the thing that ·5·· · ··Q.· ·Did they do it? ·6···I need more research on that. ·6·· · ··A.· ·Yes, they did. ·7·· · ··Q.· ·Okay. ·7·· · ··Q.· ·How do you know that? ·8·· · ··A.· ·If we have to break it down -- break it down and ·8·· · ··A.· ·I have proof of that. ·9···send it to you, but I'll need more time on that. ·9·· · ··Q.· ·What proof do you have that they did the -- 10·· · ··Q.· ·Okay.··Same question for the second work item on 10·· · ··A.· ·Pictures. 11···Exhibit 2.··"Tape and texture as needed," in the master 11·· · ··Q.· ·-- the shower pan? 12···bathroom. 12·· · ··A.· ·Pictures. 13·· · · · · · · ··What's your estimate of the value for that 13·· · ··Q.· ·Do you have pictures? 14···work? 14·· · ··A.· ·Yes. 15·· · ··A.· ·Most likely same as in the kitchen, but 700 to 15·· · ··Q.· ·Do you have them on your phone?··Have they been 16···$1,000. 16···produced to your attorney? 17·· · ··Q.· ·"Waterproof entire shower." 17·· · · · · · · ··MR. KESTENBAUM:··Can we take five? 18·· · · · · · · ··What does that mean? 18·· · · · · · · ··MR. HERNANDEZ:··In a minute. 19·· · ··A.· ·Waterproofing. 19·· · · · · · · ··THE WITNESS:··Yes, I did provide it to the 20·· · ··Q.· ·What does it mean?··What does it entail? 20···attorney. 21·· · ··A.· ·Waterproofing with the -- waterproofing the 21·· · ··Q.· ·BY MR. HERNANDEZ:··The pictures of the work that 22···drywall before you install the tiles, putting a coat of 22···was done in the shower of the shower pan, is that what 23···RedGard or seal. 23···you're saying? 24·· · ··Q.· ·And what's the value of that work, ballpark? 24·· · ··A.· ·I have to look back.··I told you I'm not sure if 25·· · ··A.· ·500, probably. 25···I provided to him, but I have pictures of the -- I have

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·1·· · ··Q.· ·Okay.··Installing a barn door? ·1···pictures.··I remember that.··I recall it in my head. ·2·· · ··A.· ·500. ·2·· · ··Q.· ·Of the shower? ·3·· · ··Q.· ·Installing plumbing fixtures? ·3·· · ··A.· ·Of the shower pan. ·4·· · ··A.· ·1,500. ·4·· · ··Q.· ·And the shower pan? ·5·· · ··Q.· ·Supplying and installing the frameless glass ·5·· · ··A.· ·The shower pan, yes. ·6···shower door? ·6·· · ··Q.· ·Do you have any other pictures on your phone ·7·· · ··A.· ·2,500. ·7···without the -- ·8·· · ··Q.· ·Installing swing or barn door on the toilet? ·8·· · ··A.· ·Because Kestenbaum e-mailed that there was no ·9·· · ··A.· ·250. ·9···shower pan back then.··And then at that moment, I asked 10·· · ··Q.· ·250? 10···the employee about that and he provided it. 11·· · ··A.· ·Uh-huh, yes. 11·· · ··Q.· ·Okay.··Which employee? 12·· · ··Q.· ·Stain on the master bath in the shower. 12·· · ··A.· ·Isaac. 13·· · · · · · · ··Mr. Syla, would you agree with me that your 13·· · ··Q.· ·Okay.··So are there other pictures you have on 14···employees or your subcontractors did the remodel for the 14···your phone about the work that your employees or 15···shower? 15···subcontractors did on the Kestenbaum home? 16·· · ··A.· ·What is your question again? 16·· · ··A.· ·No, that's why I looked.··That's why I said if I 17·· · ··Q.· ·Did your employees or subcontractors do the 17···have, I would have send it.··I would have provided, but I 18···remodel on the shower? 18···don't have more pictures. 19·· · ··A.· ·Yeah, but it wasn't finished. 19·· · ··Q.· ·So you only have pictures of the shower pan, but 20·· · ··Q.· ·It was not finished? 20···you don't have any other pictures of the work that was 21·· · ··A.· ·Yeah. 21···done on the project? 22·· · ··Q.· ·What was left to be done? 22·· · ··A.· ·I have to go look through my phone, if I have it. 23·· · ··A.· ·The cement, the green drywall, the waterproofing 23···But I looked and I couldn't find much about it.··It's been 24···and the tiles and rest of it, how it goes, the process. 24···a while. 25·· · ··Q.· ·Okay.··Do you know what a shower pan is? 25·· · ··Q.· ·When did you look?

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 17 (Pages 65-68) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 65 Page 67 ·1·· · ··A.· ·Like I said, when you -- ·1·· · · · · · · ··In these documents, Mr. Syla, we have ·2·· · ··Q.· ·Four weeks ago? ·2···something called a Bates Numbers that attorneys use to ·3·· · ··A.· ·Five weeks ago when this request came to look ·3···refer to numbers at the bottom of each page. ·4···whatever I find regarding the project. ·4·· · ··A.· ·004. ·5·· · ··Q.· ·Okay.··And, at that time, you looked for ·5·· · ··Q.· ·So you're referring to 004 in Exhibit 3? ·6···pictures -- all pictures that you had of work that was ·6·· · ··A.· ·Uh-huh, yes. ·7···done by your employees or subcontractors on the project? ·7·· · ··Q.· ·And on that page, there's a reference to ·8·· · ··A.· ·Yes, yeah.··But as far as shower pan, I had it. ·8···installing tiles on the floor, right? ·9·· · ··Q.· ·That's the only one that you were able to find? ·9·· · ··A.· ·Floor, behind tub and entire steam shower. 10·· · ··A.· ·Yes.··And like I said, I had it from that time 10·· · ··Q.· ·Okay.··And that was work that was not done, 11···that he e-mailed me there was no shower pan, which wasn't 11···right? 12···true. 12·· · ··A.· ·Correct. 13·· · ··Q.· ·Okay.··Again, we will take a quick break here. 13·· · ··Q.· ·And what is the ballpark value of that work? 14·· · · · · · · ··But, again, Mr. Syla, I'm going to advise 14·· · ··A.· ·Ballpark 5 to 7,000. 15···you to work with your counsel.··If you have pictures about 15·· · ··Q.· ·And on both Exhibit 3 and Exhibit 2, you have 16···any of the work that your employees or subcontractors did 16···"Grout it" as a separate work item? 17···on the project, they should have been produced quite a 17·· · ··A.· ·Yeah. 18···while ago.··You need to do that right away. 18·· · ··Q.· ·So what would be the ballpark value of the grout 19·· · · · · · · ··Let's take a five-minute break, please. 19···work item? 20·· · · · · · · ··(A recess was taken.) 20·· · ··A.· ·700. 21·· · ··Q.· ·BY MR. HERNANDEZ:··All right.··Okay.··Mr. Syla, 21·· · ··Q.· ·Okay.··Moving on to the last page of Exhibit 2, 22···we are back on the record. 22···we've already gone over "Grout it." 23·· · · · · · · ··We're going to continue with our line of 23·· · · · · · · ··The next work item on this list is 24···questioning and going over Exhibits 2 and comparing with 24···"Additional cost for steam shower glass door." 25···line items in Exhibit 3.··And if you want to start with 25·· · ··A.· ·Uh-huh.

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·1···Exhibit 2 on the third page, there are three work items ·1·· · ··Q.· ·What was the ballpark value of that work? ·2···there that also do not have any X's showing that the work ·2·· · ··A.· ·I would say between 500 to 1,000. ·3···was completed.··Do you see that? ·3·· · ··Q.· ·Okay.··And then the last thing here, Mr. Syla, is ·4·· · ··A.· ·Uh-huh, yes. ·4···"Install new tile behind vanity as per design ·5·· · ··Q.· ·And this is a continuation -- this is more master ·5···specifications." ·6···bathroom work at the top, on the third page, the top of ·6·· · · · · · · ··And what's the ballpark value of that? ·7···the third page? ·7·· · ··A.· ·1,500.··1,000.··1,500. ·8·· · ··A.· ·Yes. ·8·· · ··Q.· ·Just eyeballing here, Mr. Syla, it looks like, ·9·· · ··Q.· ·One work item says "Grout it." ·9···based on your testimony -- and I understand ballpark 10·· · ··A.· ·Yeah. 10···estimates -- that you did not do about $15,000 worth of 11·· · ··Q.· ·Can you show me where that is reflected in 11···work that was in the initial contract documents.··Is that 12···Exhibit 3? 12···right? 13·· · ··A.· ·Well, on the page before it, install tiles -- 13·· · ··A.· ·Yeah, correct.··Somewhere around there. 14···that means grout the tiles on the bottom. 14·· · ··Q.· ·Ballpark again? 15·· · ··Q.· ·"Installing tiles on the floor, behind the tub 15·· · ··A.· ·Ballpark, yes. 16·· · · · · ··and entire steam shower" ... 16·· · ··Q.· ·I'm going to show you what we're going to mark as 17·· · · · · · · ··Oh, I missed that one. 17···Exhibit Number 5. 18·· · ··A.· ·Yeah. 18·· · · · · · · ··(Deposition Exhibit Number 5 was marked for 19·· · ··Q.· ·So for that work item, at the bottom of the 19···identification.) 20···second page of Exhibit 2, is that reflected as a work item 20·· · ··Q.· ·BY MR. HERNANDEZ:··Take a minute to review what 21···in Exhibit 3 somewhere? 21···has been marked as Exhibit 5, and let me know when you're 22·· · ··A.· ·Yes. 22···ready, Mr. Syla. 23·· · ··Q.· ·And where is that? 23·· · ··A.· ·Yes. 24·· · ··A.· ·Yeah, master bathroom additional work. 24·· · ··Q.· ·Are you ready? 25·· · ··Q.· ·I see. 25·· · ··A.· ·Yeah.

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 18 (Pages 69-72) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 69 Page 71 ·1·· · ··Q.· ·Do you remember sending this e-mail? ·1···employees or subcontractors had done by October 4th? ·2·· · ··A.· ·I remember now, yes. ·2·· · · · · · · ··MR. STRAUGHN:··Form. ·3·· · ··Q.· ·And give me some context, Mr. Syla.··What was ·3·· · · · · · · ··THE WITNESS:··No, not as far -- I was there ·4···occurring on the project that preceded you sending this ·4···whenever -- whenever he requested.··I did my best to ·5···e-mail to Mr. Kestenbaum?··What was happening on the ·5···finish it, because there were a lot of other people ·6···project?··Why did you send this e-mail? ·6···involved in the project. ·7·· · ··A.· ·Why did I send this e-mail? ·7·· · ··Q.· ·BY MR. HERNANDEZ:··"A lot of other people" ·8·· · ··Q.· ·Yes. ·8···meaning who? ·9·· · ··A.· ·For the work that I've done and what we've talked ·9·· · ··A.· ·That Kestenbaum had dealt with. 10···about. 10·· · ··Q.· ·Do you recall having a meeting with 11·· · ··Q.· ·Exhibit Number 5, the first page is an e-mail, 11···Mr. Kestenbaum and the other individuals who were 12···right? 12···involved? 13·· · ··A.· ·Yeah. 13·· · ··A.· ·Not with other individuals. 14·· · ··Q.· ·Were there already problems on the project by the 14·· · ··Q.· ·Okay.··Did you have a meeting with Mr. Kestenbaum 15···time you sent this e-mail, Mr. Syla? 15···before October 4th about the concerns he had with the 16·· · · · · · · ··MR. STRAUGHN:··Form. 16···project? 17·· · · · · · · ··THE WITNESS:··Problems, there were, 17·· · ··A.· ·Yeah, we had a meeting and he was anxious to 18···regarding the material.··And just in the middle of my 18···finish it fast, and we came to an agreement.··I told him 19···project, there was involvement, designs and stuff, so it 19···that I'll do the best.··I make it priority, like I did, to 20···was the material was the problem as well.··And that's why 20···finish it on his timeline. 21···I knew that the project had to move forward fast, so I 21·· · ··Q.· ·Okay. 22···gave him a deadline.··He wanted a deadline.··He wanted to 22·· · ··A.· ·And I did my best as I could, and that's why I 23···finish it quick. 23···gave him this. 24·· · · · · · · ··And I said:··If I don't finish the way that 24·· · ··Q.· ·The meeting that you had with Mr. Kestenbaum, was 25···you want it, you can charge me this much, so we came to an 25···that an in-person meeting at the home?

Page 70 Page 72 ·1···agreement. ·1·· · ··A.· ·Yes. ·2·· · ··Q.· ·BY MR. HERNANDEZ:··By October 4th, you knew that ·2·· · ··Q.· ·Were there other people present? ·3···there were concerns from the homeowners about the work ·3·· · ··A.· ·Yes, it was his wife and cousin. ·4···that was being done on the project, right? ·4·· · ··Q.· ·Everybody was in the meeting, right? ·5·· · ··A.· ·Yeah.··He talked to me about it and I tried to do ·5·· · ··A.· ·Wife and cousin, yes.··His wife and cousin. ·6···the best to finish it on his timeline. ·6·· · ··Q.· ·So aside from you and Mr. Kestenbaum, how many ·7·· · ··Q.· ·So, again, the question is:··By October 4th of ·7···other people do you recall being in the meeting? ·8···2021, Mr. Kestenbaum had already communicated with you ·8·· · ··A.· ·A total of four of us. ·9···about concerns regarding the project, right? ·9·· · ··Q.· ·Okay.··And were there any specific concerns that 10·· · ··A.· ·Concerns in his opinion that it's going slow. 10···were brought up at that meeting about the work that had 11·· · ··Q.· ·Okay.··One was going slow because -- what was 11···been done up to that point? 12···your understanding -- what is your understanding of why 12·· · ··A.· ·Not concerns about what has been done.··Concerns 13···Mr. Kestenbaum believed it was going slow? 13···to finish it faster.··He wanted to finish it, to be done 14·· · · · · · · ··MR. STRAUGHN:··Form. 14···with it, as quick as possible. 15·· · · · · · · ··THE WITNESS:··Like I said, it was 15·· · ··Q.· ·Do you recall there being an issue with the hole 16···combination of materials and decision to go per design 16···that someone from D&M Electric drilled into a pipe through 17···specification.··We were waiting on a lot of stuff like he 17···the floor? 18···knows. 18·· · ··A.· ·That's what he claims. 19·· · ··Q.· ·BY MR. HERNANDEZ:··When was the project supposed 19·· · ··Q.· ·Do you deny that that happened? 20···to be completed? 20·· · ··A.· ·Well, I deny it because I wasn't there to see it 21·· · ··A.· ·We didn't have a date, because a lot of things 21···and it wasn't proof that they did it. 22···changed and were added after.··And I tried to help him as 22·· · ··Q.· ·Did you talk -- 23···much as I can with other items that I wasn't involved, as 23·· · ··A.· ·And I fixed it. 24···far as I didn't charge him for it. 24·· · ··Q.· ·Do you know who did that work? 25·· · ··Q.· ·Were there concerns with the work that your 25·· · ··A.· ·Who did which work?

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 19 (Pages 73-76) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 73 Page 75 ·1·· · · · · · · ··MR. STRAUGHN:··Form. ·1·· · ··A.· ·Work completed items. ·2·· · ··Q.· ·BY MR. HERNANDEZ:··Who did the work for D&M? ·2·· · ··Q.· ·And let me maybe re-ask the question. ·3·· · ··A.· ·I don't know. ·3·· · · · · · · ··What software or app is used to generate ·4·· · ··Q.· ·Was it Manny? ·4···this document? ·5·· · ··A.· ·It was Manny.··It was his company.··But regarding ·5·· · ··A.· ·On my MacBook. ·6···what he pointed, it had nothing to do with the leak and he ·6·· · ··Q.· ·On your MacBook? ·7···insisted that this was them. ·7·· · ··A.· ·Yeah. ·8·· · ··Q.· ·Okay.··Did you talk to Manny? ·8·· · ··Q.· ·Is there an app that you use? ·9·· · ··A.· ·I talked to Manny.··And he -- how do I say it? ·9·· · ··A.· ·No, not app, just pages. 10·· · · · · · · ·· He said he didn't do it.··He said that it 10·· · ··Q.· ·So this is just a Word document or spreadsheet? 11···wasn't them.··It was no way that it was them. 11·· · ··A.· ·Yeah, spreadsheet. 12·· · ··Q.· ·When did you talk to Manny about that? 12·· · ··Q.· ·I saw something.··I don't know if it was on this 13·· · ··A.· ·When the problem occurred. 13···document; maybe it was on something else called Joist? 14·· · ··Q.· ·So when the -- 14·· · ··A.· ·Yeah. 15·· · ··A.· ·I brought them.··They saw it.··And they said that 15·· · ··Q.· ·Is Joist an app? 16···it wasn't them.··It was no chance.··And Kestenbaum 16·· · ··A.· ·Yes. 17···insisted that it was them.··And I took care of it no 17·· · ··Q.· ·And how do you use Joist and for what purpose? 18···matter what. 18·· · ··A.· ·For invoices for proposals. 19·· · ··Q.· ·And how did you take care of it, Mr. Syla? 19·· · ··Q.· ·Tell me again, Mr. Syla, how do you use Joist? 20·· · ··A.· ·How did I take care of it? 20·· · ··A.· ·How do I use Joist? 21·· · ··Q.· ·You said that you took care of it.··I'm asking 21·· · ··Q.· ·Yes.··It's an app that you use, right? 22···you how you took care of it? 22·· · ··A.· ·Yes. 23·· · ··A.· ·I believe I did the drywall work, the drywall 23·· · ··Q.· ·And what is the purpose of you using that app? 24···work in there.··I'm not sure if it was him that he hired 24·· · ··A.· ·To make proposals and invoices. 25···someone else, because he didn't want the electricians 25·· · ··Q.· ·For the customers that you're doing construction

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·1···back. ·1···or remodeling work for, right? ·2·· · · · · · · ·· I don't recall it back if it was me -- I ·2·· · ··A.· ·Yeah, yeah, yeah. ·3···know for sure I told Ken that I would take care of it. ·3·· · ··Q.· ·Is it something that you can share with employees ·4···And I don't recall if he hired his own people or I did it. ·4···or subcontractors? ·5·· · ··Q.· ·When you took care of it, did you reimburse ·5·· · ··A.· ·I can share? ·6···Mr. Kestenbaum for the additional expense he incurred from ·6·· · · · · · · ··MR. STRAUGHN:··Form. ·7···the hole in the pipe? ·7·· · ··Q.· ·BY MR. HERNANDEZ:··Yes. ·8·· · ··A.· ·Not on paper, no.··Not -- I didn't give him a ·8·· · ··A.· ·I can share whatever you want. ·9···credit. ·9·· · ··Q.· ·Do you use Joist to share information about the 10·· · ··Q.· ·Okay. 10···work you want your employees or subcontractors to do? 11·· · ··A.· ·Planning. 11·· · ··A.· ·Not usually, no. 12·· · ··Q.· ·I'm sorry? 12·· · ··Q.· ·Do you have any sort of an app or software that 13·· · ··A.· ·I was planning it, but ... 13···you use as a task manager when you're assigning work to 14·· · ··Q.· ·But you never did? 14···your employees or subcontractors? 15·· · ··A.· ·No. 15·· · ··A.· ·No, we go over the job site. 16·· · ··Q.· ·Now the second and third pages of Exhibit 5, can 16·· · ··Q.· ·Turning again to Exhibit 5, Page 2, this is a 17···you describe for me what this is that we're looking at? 17···Word document that you prepared on your computer? 18···If you look at the bottom, Pages 2 and 3. 18·· · ··A.· ·Uh-huh, yes. 19·· · ··A.· ·Pages -- on this one? 19·· · ··Q.· ·Do you have any other documents like what's 20·· · ··Q.· ·Yes, ADVN&E2 -- 20···reflected here in 2 or 3?··Do you have any other documents 21·· · ··A.· ·Yeah. 21···that include the same information, same type of 22·· · ··Q.· ·-- and 3. 22···information for work that was done on the Kestenbaum 23·· · ··A.· ·Yeah. 23···project? 24·· · ··Q.· ·Can you describe what that is that we're looking 24·· · ··A.· ·After I have to go back and look into it more. 25···at? 25·· · ··Q.· ·Is it the same laptop --

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·1·· · ··A.· ·Yes, same computer. ·1·· · · · · · · ··What is this document?··What do you ·2·· · ··Q.· ·-- that you had since September -- ·2···understand this document to be, Mr. Syla? ·3·· · ··A.· ·Yeah. ·3·· · ··A.· ·This for lien for the amount of money I thought ·4·· · ··Q.· ·-- August, October of 2021? ·4···he owes me. ·5·· · ··A.· ·Yeah, same computer. ·5·· · ··Q.· ·So this is a lien, right? ·6·· · ··Q.· ·Same computer? ·6·· · ··A.· ·No. ·7·· · ··A.· ·I have to do more research and we'll let you know ·7·· · · · · · · ··MR. STRAUGHN:··Form, foundation. ·8···regarding that.··I believe there might be more. ·8·· · · · · · · ··THE WITNESS:··It's not a lien. ·9·· · ··Q.· ·Okay.··On Page 2 here, Mr. Syla, the third entry ·9·· · ··Q.· ·BY MR. HERNANDEZ:··What is this document to you? 10···down, has "Water line and P-trap for new washer." 10·· · ··A.· ·Pre-lien. 11·· · · · · · · ··Do you see that? 11·· · ··Q.· ·A pre-lien, okay.··I'm just making sure -- 12·· · ··A.· ·Yeah. 12·· · ··A.· ·Yeah. 13·· · ··Q.· ·Was that a reference to the plumbing and the 13·· · ··Q.· ·-- that we're avoiding making unnecessary 14···water line that your employees or subcontractors did to 14···objections here. 15···connect the washing machines to the plumbing? 15·· · ··A.· ·A pre-lien. 16·· · ··A.· ·It's regarding that scope of work, water line and 16·· · ··Q.· ·It's a pre-lien -- 17···P-trap, yeah.··It's regarding that area of work in the 17·· · ··A.· ·Yeah. 18···laundry, yeah. 18·· · ··Q.· ·-- that you issued, right? 19·· · ··Q.· ·And that was done by your employees or 19·· · ··A.· ·Not particularly, me, but, yeah. 20···subcontractors? 20·· · ··Q.· ·You authorized somebody to issue this pre-lien 21·· · ··A.· ·Yeah, yeah. 21···document? 22·· · ··Q.· ·And what is the P-trap? 22·· · ··A.· ·Yes. 23·· · ··A.· ·P-trap? 23·· · ··Q.· ·And one of the pre-lien documents that you issued 24·· · ··Q.· ·Yeah. 24···is in the amount of $32,900, right? 25·· · ··A.· ·P-trap is a drain that you connect the drain to 25·· · ··A.· ·Yes.

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·1···it.··It doesn't let you clog or mess.··That's a P-trap. ·1·· · ··Q.· ·And a second one you issued or authorized ·2·· · ··Q.· ·Okay.··So is it fair to say that N&E, your ·2···somebody to issue a pre-lien for $6,789, right? ·3···employees and subcontractors, were responsible for ·3·· · ··A.· ·Yes, yes. ·4···installing the plumbing to drain water from the washing ·4·· · ··Q.· ·Okay.··How did you come up with the $6,789? ·5···machines? ·5·· · ··A.· ·I believe there's another estimate regarding ·6·· · ··A.· ·Yes. ·6···that.··I have to look further. ·7·· · ··Q.· ·I'm going to show you what we're going to mark as ·7·· · ··Q.· ·Okay.··How did you come up with the $32,900? ·8···Exhibit 6. ·8·· · ··A.· ·From the Exhibition (sic) 2. ·9·· · · · · · · ··(Deposition Exhibit Number 6 was marked for ·9·· · ··Q.· ·Exhibits 2 and 3, or just 2? 10···identification.) 10·· · ··A.· ·Whichever was from my invoice, the first invoice. 11·· · ··Q.· ·BY MR. HERNANDEZ:··Do you recognize these 11·· · ··Q.· ·So that would be Exhibit 3? 12···documents, Mr. Syla? 12·· · ··A.· ·Yes. 13·· · ··A.· ·Yes. 13·· · ··Q.· ·So let's look at Exhibit 3. 14·· · ··Q.· ·And one is a lien that you issued for $32,900? 14·· · · · · · · ··So in Exhibit 3, using Exhibit 3, how did 15·· · ··A.· ·Uh-huh. 15···you get to $32,900? 16·· · · · · · · ··MR. STRAUGHN:··Form and foundation. 16·· · ··A.· ·The last amount. 17·· · · · · · · ··THE WITNESS:··Yes, I did. 17·· · ··Q.· ·I'm sorry? 18·· · · · · · · ··MR. STRAUGHN:··Look at this. 18·· · ··A.· ·From the amount 32,900 on the end. 19·· · ··Q.· ·BY MR. HERNANDEZ:··You can answer. 19·· · ··Q.· ·Okay.··So you're pointing to the last page in 20·· · ··A.· ·No, this is not -- no, this is not a lien. 20···Exhibit 3, right? 21·· · ··Q.· ·It's a notice lien, right? 21·· · ··A.· ·Yes. 22·· · ··A.· ·Notice lien, yeah. 22·· · ··Q.· ·And that's where you get the $32,900 -- 23·· · ··Q.· ·And you issued a notice lien -- 23·· · ··A.· ·Yes. 24·· · · · · · · ··MR. STRAUGHN:··Form, foundation. 24·· · ··Q.· ·-- for the pre-lien that you issued? 25·· · ··Q.· ·BY MR. HERNANDEZ:··-- for $32,900, right? 25·· · ··A.· ·Yes, yes.

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·1·· · ··Q.· ·Mr. Syla, why did you issue a lien for $32,900 ·1·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··So you discussed with ·2···when you knew that you hadn't done all of the work in the ·2···him where the showerhead was going to go? ·3···contract? ·3·· · ··A.· ·Yeah, showerhead was going to go. ·4·· · · · · · · ··MR. STRAUGHN:··Form, foundation. ·4·· · ··Q.· ·Did you discuss with him where the steam head was ·5·· · · · · · · ··THE WITNESS:··That was not what he owed me. ·5···going to go? ·6···I understood that.··But I send a pre-lien that if I finish ·6·· · ··A.· ·The steam, the kit behind in the closet. ·7···the work -- usually when they send it, somebody gets into ·7·· · ··Q.· ·And the ThermaSol panel, did you have any ·8···your work and gets somebody else to get it done, you owe ·8···discussions with Alberto about where the ThermaSol panel ·9···me the rest of the money.··Because I wanted to finish the ·9···was going to be installed? 10···work, but he didn't allow me. 10·· · ··A.· ·I don't recall it very well, as far as that.··To 11·· · ··Q.· ·BY MR. HERNANDEZ:··You knew at that time when you 11···tell you the truth, the exact words, I don't -- 12···authorized -- or issued the pre-liens that you weren't 12·· · ··Q.· ·Do you know what I mean when I say the ThermaSol 13···owed $32,900; is that fair? 13···panel? 14·· · ··A.· ·Yes, that's fair.··Of course.··I'm telling the 14·· · ··A.· ·The ThermaSol panel that you can -- 15···truth. 15·· · ··Q.· ·It's an electronic digital -- 16·· · · · · · · ··MR. KESTENBAUM:··That part's now done. 16·· · ··A.· ·-- yeah, yeah. 17·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··Mr. Syla, let's move on 17·· · ··Q.· ·-- temperature control panel -- 18···here.··The work that you did in the shower, you testified 18·· · ··A.· ·Yeah. 19···earlier there was an issue with the shower pan that your 19·· · ··Q.· ·-- right? 20···employees -- Mr. Kestenbaum believes that you didn't do, 20·· · ··A.· ·Yeah. 21···but you have proof that your employees did, right? 21·· · ··Q.· ·You don't recall having conversation with Alberto 22·· · ··A.· ·Yes. 22···about the ThermaSol panel; is that right? 23·· · ··Q.· ·Okay.··Your employees or subcontractors were also 23·· · ··A.· ·I do recall having conversation what the owner 24···responsible for installing ThermaSol panel; is that right? 24···wanted and where we would put it, the best place. 25·· · ··A.· ·Yes, as far as steam shower, yes. 25·· · ··Q.· ·Okay.··Did you talk with Manny or anyone else

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·1·· · ··Q.· ·And -- ·1···from DM Electric (sic) about where the ThermaSol panel was ·2·· · ··A.· ·ThermaSol. ·2···going to go? ·3·· · ··Q.· ·And were you involved -- did you perform any work ·3·· · ··A.· ·I believe so, yes. ·4···to install the ThermaSol panel? ·4·· · ··Q.· ·Okay.··During those conversations with Manny and ·5·· · ··A.· ·No, the electricians did. ·5···whoever else from DM Electric that did work on the shower, ·6·· · ··Q.· ·And how about the plumbing in the shower? ·6···did you guys take the time to look at the manufacturer's ·7·· · ··A.· ·Yes, we did the plumbing. ·7···specifications for installation of the panel? ·8·· · ··Q.· ·And who did the plumbing? ·8·· · ··A.· ·I believe we did.··As far as him, he did -- ·9·· · ··A.· ·Alberto. ·9·· · ··Q.· ·Is it your -- 10·· · ··Q.· ·Alberto did all of the plumbing for the shower? 10·· · ··A.· ·-- to do. 11·· · ··A.· ·Yes. 11·· · ··Q.· ·-- understanding and belief today that you 12·· · ··Q.· ·Did all of the plumbing for the steam shower? 12···installed the ThermaSol panel in compliance with the 13·· · ··A.· ·Mostly, yeah.··For the steam kit, yes. 13···manufacturer's specifications? 14·· · ··Q.· ·Who else other than Alberto? 14·· · ··A.· ·I believe so. 15·· · ··A.· ·Nobody. 15·· · ··Q.· ·Is it your testimony and belief, as you sit here 16·· · ··Q.· ·Did you at any point in time talk to Alberto 16···today, Mr. Syla, that the installation of the shower -- 17···about the work that needed to be done for the installation 17···the steam head complied with the manufacturer's 18···of the steam shower? 18···specifications? 19·· · ··A.· ·We went over, yeah.··We went over. 19·· · ··A.· ·Yes. 20·· · ··Q.· ·Okay.··What conversation did you have with 20·· · ··Q.· ·Do you recall there being an issue -- do you know 21···Alberto about the work for the steam shower? 21···what a tub fill is, Mr. Syla? 22·· · · · · · · ··MR. STRAUGHN:··Form. 22·· · ··A.· ·Yes. 23·· · · · · · · ··THE WITNESS:··General conversations where 23·· · ··Q.· ·What is a tub fill? 24···the showerhead going.··General things, normal things about 24·· · ··A.· ·Tub fill. 25···the project. 25·· · ··Q.· ·What is it?··Describe it for me.··I just want --

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·1···again, some of this may sound elementary or naive. ·1···saw the paper and the tape that was used to cover the wood ·2·· · ··A.· ·Tub fill is a faucet.··Faucet for the tub. ·2···floor? ·3·· · ··Q.· ·Okay.··And did your employees or subcontractors ·3·· · ··A.· ·Yes.··But it didn't concern me because I didn't ·4···do the work to install the tub fill? ·4···see anything damaged at that point. ·5·· · ··A.· ·No, we didn't do that.··That's unfinished. ·5·· · ··Q.· ·Did you see the tape -- did you recognize the ·6·· · ··Q.· ·One of the other issues in the case, Mr. Syla, ·6···tape that was used to cover the floor? ·7···pertains to some tape that was used on wood floors ·7·· · ··A.· ·I did.··And it's not the first rodeo. ·8···adjacent to the laundry room.··Do you recall that being an ·8·· · ··Q.· ·Okay.··So what tape was used to cover the floor? ·9···issue in this case? ·9·· · ··A.· ·Usually it's orange tape or blue tape. 10·· · ··A.· ·No. 10·· · ··Q.· ·Okay.··And did they use blue tape or orange tape 11·· · ··Q.· ·So, as you sit here today, you're not aware of an 11···to cover the floor in the master bedroom? 12···issue in this case being damaged wood floors? 12·· · ··A.· ·I don't remember it.··I don't remember in my head 13·· · ··A.· ·Damaged wood floors? 13···which tape they used at that time.··If I have pictures, 14·· · ··Q.· ·Yeah. 14···that would help. 15·· · ··A.· ·Where? 15·· · ··Q.· ·But you agree with me they should have used blue 16·· · ··Q.· ·In the master bedroom next to the laundry room. 16···tape or orange tape? 17·· · ··A.· ·No, I don't recall that.··I don't remember that 17·· · ··A.· ·Blue tape or orange tape or there is green 18···as far as the damaged wood floor. 18···FrogTape, which is more expensive. 19·· · ··Q.· ·Okay. 19·· · ··Q.· ·It's not a great copy here.··There's a little 20·· · ··A.· ·I don't remember anything about that, damaged 20···blurring on it, but you can see it still.··This is 21···wood floor. 21···Exhibit Number 7. 22·· · ··Q.· ·Do you recall that there is a bedroom -- a master 22·· · · · · · · ··(Deposition Exhibit Number 7 was marked for 23···bedroom next to the laundry room? 23···identification by the reporter.) 24·· · ··A.· ·Next to the bathroom. 24·· · ··Q.· ·BY MR. HERNANDEZ:··Do you see the tape? 25·· · ··Q.· ·The bedroom next to the master bath? 25·· · ··A.· ·Yes.··It says "duck tape."

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·1·· · ··A.· ·Yes. ·1·· · ··Q.· ·Okay.··And do you see the picture of the tape, ·2·· · · · · · · ··MR. KESTENBAUM:··Next to the master bath. ·2···Mr. Syla? ·3·· · ··Q.· ·BY MR. HERNANDEZ:··Okay.··And everything was ·3·· · ··A.· ·Yes, I see the picture, the tape. ·4···taken out of the master bedroom, right? ·4·· · ··Q.· ·And that's not blue tape or orange tape or green ·5·· · ··A.· ·Yeah. ·5···tape, is it? ·6·· · ··Q.· ·And your employees or subcontractors covered the ·6·· · ··A.· ·No, it's not. ·7···floor in the master bedroom? ·7·· · ··Q.· ·It's duct tape; isn't it? ·8·· · ··A.· ·Yes. ·8·· · ··A.· ·It is duct tape.··And I assume my employees ·9·· · ··Q.· ·You don't deny that? ·9···wouldn't use duct tape. 10·· · ··A.· ·I don't deny that.··We usually cover it. 10·· · ··Q.· ·Okay. 11·· · ··Q.· ·Okay.··Did you see the tape that -- do you know 11·· · ··A.· ·Kestenbaum never showed it to me like this.··If 12···which employee or subcontractor covered the floor in the 12···this what they used, but I would never use this duct tape. 13···master bedroom? 13·· · ··Q.· ·Should not have been used? 14·· · ··A.· ·I don't recall which employee. 14·· · ··A.· ·No, should not have been used. 15·· · ··Q.· ·Who would it be? 15·· · ··Q.· ·Should not have been used. 16·· · ··A.· ·Mostly Cain or Nuredin.··Cain or Nuredin. 16·· · ··A.· ·But it's not my employees that used it. 17·· · ··Q.· ·And you saw the master bedroom floor covered -- 17·· · · · · · · ··MR. KESTENBAUM:··More negligence. 18·· · ··A.· ·Yes. 18·· · ··Q.· ·BY MR. HERNANDEZ:··One of the other issues in the 19·· · ··Q.· ·-- right? 19···case, Mr. Syla, is a kitchen vent that your employees or 20·· · ··A.· ·When I was at the job site, yeah, I saw it 20···subcontractors installed to connect the range hood; do you 21···covered. 21···recall that? 22·· · ··Q.· ·You saw it covered with paper and you saw the 22·· · ··A.· ·To connect the range, yes, I recall that. 23···tape that they used? 23·· · ··Q.· ·Your employees or subcontractors installed the 24·· · ··A.· ·Yes. 24···vent, right? 25·· · ··Q.· ·Did that cause you any concern at all when you 25·· · ··A.· ·Yes.

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·1·· · ··Q.· ·And do you recall that being an issue on the ·1···apples here. ·2···project? ·2·· · ··A.· ·Okay. ·3·· · ··A.· ·I don't recall that being an issue. ·3·· · · · · · · ··(Deposition Exhibit Number 8 was marked for ·4·· · ··Q.· ·Okay.··So before today, were you aware of a claim ·4···identification.) ·5···alleging that your employees or subcontractors installed ·5·· · ··Q.· ·BY MR. HERNANDEZ:··Let me just find the right ·6···the wrong size vent? ·6···page, Mr. Syla, because there's a couple.··You have ·7·· · ··A.· ·I wasn't aware of that claiming. ·7···different pictures in here that I can show you. ·8·· · ··Q.· ·You weren't aware of that claim before today? ·8·· · · · · · · ··Again, I will refer you to the bottom ·9·· · ··A.· ·For the vent, no, I don't recall that. ·9···right-hand corner.··You're looking for ADVN&E 97 and 98. 10·· · · · · · · ··MR. KESTENBAUM:··Now you're aware. 10·· · ··A.· ·97 and 98, yes. 11·· · ··Q.· ·BY MR. HERNANDEZ:··Mr. Syla, if you can go back 11·· · ··Q.· ·Okay. 12···to Exhibits 2 and 3.··And on both documents, Exhibits 2 12·· · ··A.· ·Okay. 13···and 3 -- I don't care which one you do first -- point out 13·· · ··Q.· ·So these are two pictures of the range hood and 14···to me where it reflects the work that was supposed to be 14···the duct that your employees or subcontractors installed, 15···done on the vent for the kitchen. 15···right? 16·· · ··A.· ·Okay.··What was your question? 16·· · ··A.· ·The vent here, no.··Just the pipe on top. 17·· · ··Q.· ·So let's go document by document. 17·· · ··Q.· ·Right. 18·· · · · · · · ··In Exhibit 2, where does it reflect the work 18·· · ··A.· ·We left it because it wasn't sure yet what type 19···that was done on the kitchen vent, Exhibit 2? 19···of vent. 20·· · ··A.· ·It doesn't reflect here.··It says vent.··Exhaust 20·· · ··Q.· ·But your employees installed the pipe? 21···fan and relocate vent of the pantry. 21·· · ··A.· ·The pipe, yes -- 22·· · ··Q.· ·And where do you see that? 22·· · ··Q.· ·Okay. 23·· · ··A.· ·Additional work in the kitchen, Exhibit 2. 23·· · ··A.· ·-- as I recall it. 24·· · ··Q.· ·Okay.··"Relocate vent after pantry demo"? 24·· · ··Q.· ·And, again, because it doesn't reflect -- the 25·· · ··A.· ·Yeah. 25···picture is not being transcribed on Page 97.··You're

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·1·· · ··Q.· ·Okay.··And now if you could do the same in ·1···referring to the tube coming down from the ceiling over ·2···Exhibit 3 and tell me where the vent work is -- ·2···the range hood, right? ·3·· · ··A.· ·Located. ·3·· · ··A.· ·Yeah, that was temporary tube. ·4·· · ··Q.· ·-- listed? ·4·· · ··Q.· ·It was a temporary tube? ·5·· · ··A.· ·Additional work, kitchen. ·5·· · ··A.· ·Yeah, temporary tube, because we didn't know what ·6·· · ··Q.· ·"Relocate vent after pantry demo," right? ·6···vent.··We didn't have it there.··He didn't have it at the ·7·· · ··A.· ·Uh-huh, yes. ·7···time. ·8·· · ··Q.· ·Do you have any other documentation, Mr. Syla, ·8·· · ··Q.· ·Okay.··But you installed the temporary tube? ·9···about the size of the hood that was being installed, or ·9·· · ··A.· ·Yeah, we left it hanging like that. 10···the size of the vent that should have been installed to 10·· · ··Q.· ·And did you cut the hole in the ceiling to fit 11···connect the hood? 11···the temporary tube? 12·· · ··A.· ·We never installed the exhaust fan. 12·· · ··A.· ·Yeah, we cut the hole. 13·· · ··Q.· ·You didn't install the exhaust fan? 13·· · ··Q.· ·And you cut the hole in the roof to fit the 14·· · ··A.· ·The vent, the hood vent. 14···temporary tube? 15·· · ··Q.· ·Okay. 15·· · ··A.· ·On the roof, yeah.··I believe so on the roof, 16·· · ··A.· ·We never installed it. 16···too. 17·· · ··Q.· ·So how did you know what size of vent to install? 17·· · ··Q.· ·So you cut a hole in the ceiling.··You cut a hole 18·· · ··A.· ·I was waiting for them to give me the specifics 18···in the roof without knowing exactly which range hood was 19···on the vent.··They kept ordering one after another, so 19···going to be installed; is that right? 20···that job wasn't completed yet. 20·· · ··A.· ·Like I said, it was going back and forth which 21·· · ··Q.· ·But you installed the vent, right? 21···type of vent he was using, so I used the standard one. 22·· · ··A.· ·That was just rough-in duct, not the vent. 22·· · · · · · · ·· And this is -- this looks more like a 23·· · ··Q.· ·Okay.··But so -- 23···commercial type of vent, so it needs a specific to 24·· · ··A.· ·It says -- 24···make ... 25·· · ··Q.· ·Let me show you a picture.··We can talk apples to 25·· · ··Q.· ·Do you have any documentation, an e-mail or a

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 24 (Pages 93-96) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 93 Page 95 ·1···text message from Mr. Kestenbaum or his wife or anybody ·1·· · ··A.· ·Yes. ·2···else that says:··Yes, install a six-inch vent and cut a ·2·· · ··Q.· ·What is a laundry box? ·3···hole in the ceiling and cut a hole in the roof for a ·3·· · ··A.· ·Laundry box is where the overflow and the ·4···six-inch vent?··Do you have any documentation that shows ·4···water -- the water for the washer and dryer comes -- ·5···somebody said it's okay to do that? ·5·· · ··Q.· ·Okay. ·6·· · ··A.· ·No, I don't. ·6·· · ··A.· ·-- to the laundry box. ·7·· · ··Q.· ·With respect to the laundry room and the water ·7·· · ··Q.· ·And is that standard? ·8···lines, Mr. Syla, do you recall Mr. Kestenbaum's wife, ·8·· · ··A.· ·Yeah, for laundry, yeah. ·9···Jewel, bringing to your attention an issue with the water ·9·· · ··Q.· ·Did you see a laundry box installed when you 10···lines connected to the washing machines before the flood? 10···inspected the laundry room before the flood? 11·· · ··A.· ·Before the flood was leaked, she texted me, yes. 11·· · ··A.· ·I don't recall that. 12·· · ··Q.· ·And what do you recall about those communications 12·· · ··Q.· ·Is that -- 13···with Jewel Kestenbaum about the water lines connected to 13·· · ··A.· ·Those were stackable European something washer 14···the washing machines? 14···and dryers.··I don't recall it very well. 15·· · ··A.· ·She said that, as I recall, that her A/C plumber 15·· · ··Q.· ·Is a laundry box something that should have been 16···said that it wasn't done something right.··And I told her 16···done? 17···that we will look further into it and try to fix it or try 17·· · ··A.· ·Depends. 18···to look at what is wrong, but I never got the chance. 18·· · ··Q.· ·On what? 19·· · · · · · · ·· Well, the first leak, I fixed it.··I don't 19·· · ··A.· ·Depends on the requirements of the washer and 20···recall if it was just a dripping leak.··I fixed it from 20···dryer.··But usually, yes.··Depends. 21···the pipe. 21·· · ··Q.· ·Okay.··Did you talk with Alberto about installing 22·· · · · · · · ·· But then when they claim it was a flood, 22···a laundry box in the laundry room? 23···they never gave me a chance to look at my problem, so I 23·· · ··A.· ·I don't remember that.··I don't recall that as 24···don't know what happened there.··I don't know how come it 24···far as laundry box. 25···didn't happen, but it happened all of a sudden. 25·· · ··Q.· ·Do you have any reason or explanation for why a

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·1·· · ··Q.· ·So if I'm understanding you correctly, you did ·1···laundry box was not installed? ·2···touch the plumbing in the laundry room, right? ·2·· · ··A.· ·I have no explanation regarding that, why it ·3·· · ··A.· ·Yeah. ·3···wasn't installed or why it was. ·4·· · ··Q.· ·You worked on it? ·4·· · ··Q.· ·You have identified West Harrington as an expert ·5·· · ··A.· ·Yeah. ·5···in the case.··Did you know that? ·6·· · ··Q.· ·You made an attempt to fix a leak; is that right? ·6·· · ··A.· ·Excuse me? ·7·· · ··A.· ·Yes, I believe.··Yes, they fixed it.··She showed ·7·· · ··Q.· ·Do you know who West Harrington is? ·8···me a leak or -- I don't recall if she showed me a leak or ·8·· · · · · · · ··MR. STRAUGHN:··That's that expert that we ·9···if it was -- it's not flooding water.··I think the valve ·9···hired. 10···was turned off only.··I don't recall it very well to tell 10·· · · · · · · ··THE WITNESS:··Okay. 11···you the truth.··It was long time ago.··I have to go back. 11·· · ··Q.· ·BY MR. HERNANDEZ:··Do you know who West 12···I get many texts a day, so ... 12···Harrington is? 13·· · ··Q.· ·So do you recall checking the plumbing connecting 13·· · ··A.· ·No. 14···to the washing machine before the flood? 14·· · ··Q.· ·You still don't, okay. 15·· · ··A.· ·I don't recall that to the washing machine.··As 15·· · · · · · · ··You have never worked with Mr. Harrington 16···far as the washing machine, no, I don't recall that. 16···before him being designated as an expert on your behalf in 17·· · ··Q.· ·You don't recall inspecting it before the flood; 17···this case; is that right? 18···is that right? 18·· · ··A.· ·Yes. 19·· · ··A.· ·Inspecting it? 19·· · ··Q.· ·Just a few more questions here, Mr. Syla. 20·· · ··Q.· ·Did you look at it before the flood? 20·· · · · · · · ··The 30,000 that Mr. Kestenbaum paid you -- 21·· · ··A.· ·Yeah, we looked at it.··Everything was fine 21···do you deny that he paid you $30,000? 22···before the flood. 22·· · ··A.· ·I don't deny.··He paid me. 23·· · ··Q.· ·Okay. 23·· · ··Q.· ·Okay. 24·· · ··A.· ·We were there.··Everything was fine. 24·· · ··A.· ·Yeah. 25·· · ··Q.· ·All right.··Do you know what a laundry box is? 25·· · ··Q.· ·How did he pay you?

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·1·· · ··A.· ·Two checks. ·1·· · ··Q.· ·Do you know that when you have a corporation ·2·· · ··Q.· ·Okay.··And is that $30,000 that he paid you ·2···registered in the State of Arizona, that you have to ·3···reflected in your tax returns and/or in N&E's profit and ·3···designate a statutory agent?··You did not know that? ·4···loss statements? ·4·· · ··A.· ·A corporation, not an LLC. ·5·· · · · · · · ··MR. STRAUGHN:··Form, foundation. ·5·· · ··Q.· ·An LLC. ·6·· · · · · · · ··THE WITNESS:··It goes to my business ·6·· · ··A.· ·Yes. ·7···account.··It goes to my business account. ·7·· · ··Q.· ·When you have an LLC registered in the State of ·8·· · ··Q.· ·BY MR. HERNANDEZ:··So you can provide a record of ·8···Arizona, did you understand that you're supposed to ·9···those checks being deposited into your business accounts? ·9···designate a statutory agent? 10·· · ··A.· ·I can look for them. 10·· · ··A.· ·No comment on that. 11·· · ··Q.· ·Okay.··And you can also check your bank 11·· · ··Q.· ·No comment, okay. 12···statements to identify and produce for us all of the 12·· · · · · · · ··MR. KESTENBAUM:··Date and place. 13···checks that were paid to the subcontractors or employees 13·· · ··Q.· ·BY MR. HERNANDEZ:··Mr. Syla, I notice that you're 14···for work that was done on the project? 14···wearing a pretty expensive watch. 15·· · ··A.· ·I have to look for them. 15·· · ··A.· ·Yeah. 16·· · ··Q.· ·That's something that you can do, right? 16·· · ··Q.· ·Is it a real watch, authentic? 17·· · ··A.· ·I can try to find it.··If I can, yeah. 17·· · ··A.· ·Of course, it's a real watch. 18·· · ··Q.· ·But you haven't done it?··You haven't tried to do 18·· · ··Q.· ·And when did you purchase that watch? 19···it before today? 19·· · ··A.· ·I purchased a few years ago.··What does that have 20·· · ··A.· ·No, I haven't tried.··As far as the check -- all 20···to do ... 21···of the checks, are you asking for bank statements and 21·· · · · · · · ··MR. HERNANDEZ:··Let's go off the record. 22···checks? 22···I'm pretty sure I'm wrapped up with my questions.··But let 23·· · ··Q.· ·And you understand that you have an obligation to 23···me go over my notes and we'll come back in ten minutes to 24···provide documents relevant to the work that was done on 24···confirm. 25···the Kestenbaum home, right? 25·· · · · · · · ··THE WITNESS:··Go ahead.

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·1·· · ··A.· ·Yes, as much documents as I could found. ·1·· · · · · · · ··(A recess was taken.) ·2·· · ··Q.· ·But you haven't looked before today for any of ·2·· · · · · · · ··MR. HERNANDEZ:··And, on the record, I don't ·3···the checks that you paid the subcontractors, right? ·3···have further questions today.··I am reserving the right to ·4·· · ··A.· ·As far as checks, no, I couldn't find.··I was ·4···call Mr. Syla back into a deposition given that it does ·5···not. ·5···not appear there was a thorough search for documents, nor ·6·· · ··Q.· ·Did you look or did you not look for the checks ·6···was there a thorough production of documents before his ·7···that you paid the subcontractors? ·7···deposition.··So, therefore, we're reserving the right to ·8·· · ··A.· ·For the checks, no, no.··I'll be honest with you. ·8···call you back for another deposition.··So I have no ·9·· · · · · · · ··MR. KESTENBAUM:··Beautiful. ·9···further questions for today. 10·· · · · · · · ··THE WITNESS:··Whatever. 10·· · · · · · · ··MR. MOULTON:··I have just a few questions. 11·· · · · · · · ··MR. KESTENBAUM:··It will be a jury. 11··· 12·· · · · · · · ··MR. STRAUGHN:··Isaac, will you please -- 12·· · · · · · · · · · · · ·· EXAMINATION 13·· · · · · · · ··MR. HERNANDEZ:··Yes. 13···BY MR. MOULTON: 14·· · · · · · · ··MR. STRAUGHN:··-- control your client? 14·· · ··Q.· ·My name is Tim Moulton.··I represent State Farm, 15·· · · · · · · ··MR. HERNANDEZ:··We're almost done. 15···and that's Mr. Kestenbaum's insurance company. 16·· · · · · · · ··MR. STRAUGHN:··You shouldn't be making 16·· · · · · · · ··And our interest in this case is essentially 17···comments on the records. 17···that there was the flood on October 10 of '21 that caused 18·· · · · · · · ··MR. HERNANDEZ:··That goes both ways. 18···damage to the home, and State Farm paid 76,905.80.··And so 19·· · · · · · · ··Let's try to wrap this up. 19···State Farm is bringing an action against your company -- 20·· · ··Q.· ·BY MR. HERNANDEZ:··Do you have a statutory agent 20···you and your company for that money.··And that's what I 21···for the company, Mr. Syla? 21···want to talk about. 22·· · ··A.· ·No. 22·· · · · · · · ··Let's just talk big picture.··You're a 23·· · ··Q.· ·Who was the -- 23···licensed general contractor? 24·· · ··A.· ·What do you mean "statutory agent"?··Can you be 24·· · ··A.· ·Yes. 25···more specific? 25·· · ··Q.· ·And so the company is licensed, but you had a

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·1···partner that you worked under his license -- or with his ·1···with that? ·2···license until you could get it yourself; is that what ·2·· · ··A.· ·Yes. ·3···happened? ·3·· · ··Q.· ·And if you fail to do that, you agree that you ·4·· · ··A.· ·He cosigned me. ·4···would be breaching your responsibilities as a general ·5·· · ··Q.· ·Cosigned, okay. ·5···contractor? ·6·· · · · · · · ··And it sounds like he didn't really do a ·6·· · ··A.· ·I agree.··Mistakes happen, but I agree. ·7···whole lot of the construction work.··He just allowed you ·7·· · ··Q.· ·Okay.··Let's talk about the laundry room drain, ·8···to cosign under his license? ·8···because that's really all I'm interested in -- ·9·· · ··A.· ·Yes. ·9·· · ··A.· ·Yeah. 10·· · ··Q.· ·Okay.··And then you got the license on your own? 10·· · ··Q.· ·-- because remember I told you, State Farm paid 11·· · ··A.· ·Yes. 11···for the flood damages to the structure -- 12·· · ··Q.· ·Mr. Syla, about six months or a year ago.··Is 12·· · ··A.· ·Yeah. 13···that -- 13·· · ··Q.· ·-- and I want to focus on that. 14·· · ··A.· ·Yes. 14·· · · · · · · ··But before I do that, from looking at these 15·· · ··Q.· ·Okay.··Got it. 15···documents, Mr. Syla, and am I pronouncing your name 16·· · · · · · · ··Now, as a general contractor, I noticed on a 16···correctly? 17···lot of these exhibits here, for example, on Exhibit 3, it 17·· · ··A.· ·Yes. 18···says "Estimate."··It says "N&E Construction LLC, licensed 18·· · ··Q.· ·Thank you. 19···insured and bonded."··And then it has Registrar of 19·· · · · · · · ··It looks like from Exhibits 2 and 3, that 20···Contractor Number 291996. 20···the time frame that we're talking about here is -- it 21·· · ··A.· ·Yes. 21···looks like Exhibit 2, it says April 22nd of '21.··And then 22·· · ··Q.· ·And so is that when you got together with 22···the date of July 22nd (sic) -- 26-21, we know the flood 23···Mr. Kestenbaum and reached an agreement about doing work 23···was in October of '21. 24···at his home, as a general contractor?··Did you hold 24·· · · · · · · ··Is essentially the history or the time frame 25···yourself out, you and your company, as a licensed general 25···of your job with the Kestenbaums as a general contractor,

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·1···contractor? ·1···was it in 2021, basically from March or April through ·2·· · ··A.· ·Yes. ·2···October?··Is that the correct time frame? ·3·· · ··Q.· ·Okay.··And so you represented to him that you ·3·· · ··A.· ·Yes. ·4···were licensed -- that you were a licensed general ·4·· · ··Q.· ·And I want to understand kind of how you came to ·5···contractor and that you would do the work and supervise ·5···be a general contractor for Mr. Kestenbaum.··Did he ·6···the work and direct the work and hire subs and that kind ·6···contact you based on an advertisement?··Did you solicit ·7···of thing? ·7···the work?··How did you get the work? ·8·· · ··A.· ·Yes. ·8·· · ··A.· ·He contacted me. ·9·· · ··Q.· ·And you would do it in a proper, professional ·9·· · ··Q.· ·And did you have -- did you advertise?··Did you 10···manner; is that correct? 10···have a Yellow Page ad?··Do you know how he located you in 11·· · ··A.· ·Yes. 11···any way? 12·· · ··Q.· ·Okay.··So you essentially held yourself out in 12·· · ··A.· ·Recommendation, I think.··Recommendation. 13···that way and you promised Mr. Kestenbaum and his family, 13·· · ··Q.· ·So he contacted you based on a recommendation? 14···your customer, that you would do that? 14·· · ··A.· ·Yes. 15·· · ··A.· ·Yes, I do that with all of my customers. 15·· · ··Q.· ·And then when he contacted you, did you come out 16·· · ··Q.· ·And you agree that it was your obligation and 16···to his home and meet with him and talk to him about the 17···responsibility to act professionally and competently and 17···job? 18···diligently as a general contractor -- 18·· · ··A.· ·Yes. 19·· · ··A.· ·Yes. 19·· · ··Q.· ·Okay.··And then would that be maybe March or 20·· · ··Q.· ·-- in doing the work? 20···February of '21, or can you give me some kind of estimate 21·· · ··A.· ·For my scope of work, yes. 21···of a time frame? 22·· · ··Q.· ·And one of the things that a general contractor 22·· · ··A.· ·Somewhere there, March, March, February, 23···is responsible for is to make sure that both he or she and 23···somewhere around there. 24···the company and the subcontractors are licensed, trained, 24·· · ··Q.· ·Okay.··And then I have a document here.··I think 25···competent and able to do the job correctly.··Do you agree 25···it's exhibit --

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·1·· · · · · · · ··What number is this one?··I can't remember. ·1·· · ··Q.· ·Okay.··And did you acknowledge at that time or at ·2·· · · · · · · ··MR. HERNANDEZ:··I want to say 7. ·2···any time since, that the drain, the plumbing system, the ·3·· · · · · · · ··MR. MOULTON:··I should have written it down. ·3···lack of a washer box was, in fact, a mistake and -- ·4·· · · · · · · ··What number is this? ·4·· · ··A.· ·No.··Because I wanted to see what was the ·5·· · · · · · · ··MR. HERNANDEZ:··I think it's 8. ·5···problem.··I never got the chance to see the problem. ·6·· · ··Q.· ·BY MR. MOULTON:··So on Exhibit 8, on Bates Stamp ·6·· · ··Q.· ·So you don't know one way or the other whether ·7···Number 89, this is Donley AC & Plumbing.··I just want to ·7···your work, and the worker, your sub, was defective? ·8···bring something up. ·8·· · ··A.· ·No.··We never get the chance to go back. ·9·· · · · · · · ··On that page it says October 11th, 2021. ·9·· · ··Q.· ·So it may very well have been defective and a 10···And it says, quote, "Customer had flood over the weekend 10···problem, but you don't know? 11···from washer." 11·· · ··A.· ·I don't know.··I was not able to go back.··If it 12·· · · · · · · ··And then it says -- a sentence or two in, it 12···was normal conversation:··Hey, I think this is your fault 13···says:··"Customer fired contractor and wants us to finish 13···or something.··I want to go back. 14·· · · · · ··remodel plumbing work." 14·· · · · · · · ·· It was Sunday, I believe.··And I said: 15·· · · · · · · ··Did you get fired by Mr. Kestenbaum on or 15···"I'll be there Monday morning." 16···about the day of the flood? 16·· · · · · · · ·· But the threat was there:··Don't step foot 17·· · ··A.· ·Yes.··He threatened me not to go back.··So I 17···in my property. 18···guess it's a fire.· ·He threatened me not to go back or 18·· · ··Q.· ·Now, the way that I understand all of these 19···anyone back in his house. 19···documents and your testimony, Mr. Syla, is that you are 20·· · ··Q.· ·And I know you and Mr. Kestenbaum probably know 20···not a licensed contractor -- I mean, a licensed plumbing 21···this, but I wasn't involved. 21···contractor? 22·· · · · · · · ··Was it after the flood that he contacted you 22·· · ··A.· ·Yes. 23···and said:··You're done; don't come back? 23·· · ··Q.· ·Is that correct? 24·· · ··A.· ·Yes.··I need to see what the problem was, but he 24·· · ··A.· ·I'm not a licensed plumber, yes. 25···threatened me not to come back. 25·· · ··Q.· ·And so you basically admit that you do not really

Page 106 Page 108 ·1·· · ··Q.· ·And did he tell you that part of the reason was ·1···have sufficient knowledge, training and expertise to be a ·2···that the drain and the plumbing system in the laundry room ·2···licensed plumbing contractor? ·3···and the lack of washer box caused a flood, and that's why ·3·· · ··A.· ·Exactly, correct. ·4···you were fired? ·4·· · ··Q.· ·So you relied on Mr. Delgado and his expertise? ·5·· · ··A.· ·He told me there was a flood and he blamed me and ·5·· · ··A.· ·Yes, of course. ·6···that's the reason.··He just said:··I don't want anybody ·6·· · ··Q.· ·But you knew all along, didn't you, that he was ·7···here and threatened me that if I come, he will call the ·7···not a licensed plumbing contractor? ·8···police. ·8·· · ··A.· ·I knew that it wasn't a license, yes, that's ·9·· · ··Q.· ·Thank you. ·9···correct. 10·· · · · · · · ··So that's the time.··I just want to 10·· · ··Q.· ·And so you knew that he was not licensed, but yet 11···understand. 11···you relied on him in doing the Kestenbaum work? 12·· · ··A.· ·Yes. 12·· · ··A.· ·Yes. 13·· · ··Q.· ·So it was the flood? 13·· · ··Q.· ·Okay.··And you agree that that was a mistake? 14·· · ··A.· ·Yeah. 14·· · ··A.· ·That was a mistake, yes. 15·· · ··Q.· ·So for lack of a better term, the straw that 15·· · ··Q.· ·And you agree that it is your responsibility to 16···broke the camel's back? 16···make sure that you use competent, well-trained, 17·· · ··A.· ·Yes, in his belief. 17···experienced, licensed plumbing contractors? 18·· · ··Q.· ·And so he basically says:··You're fired.··Don't 18·· · ··A.· ·I agree.··Yeah, I agree, licensed.··But I don't 19···come back. 19···know for sure if it was our problem.··That's why -- we 20·· · ··A.· ·If you show up, I'll call the police.··You're 20···never got a chance to see if it was my guy's problem.··And 21···done. 21···that's what I wanted to make sure. 22·· · ··Q.· ·And did he say:··I hold you responsible for the 22·· · ··Q.· ·But you certainly understand from 23···flood? 23···Mr. Kestenbaum's point of view, that if his house was 24·· · ··A.· ·Well, yes, of course, he said that to me.··That's 24···flooded and he's upset about it, that maybe you can kind 25···why he didn't want me back. 25···of understand if he said:··You're fired.··Don't come back.

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 28 (Pages 109-112) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 109 Page 111 ·1···You can understand that, flooded his house? ·1·· · ··A.· ·-- I know that I told his wife that we will go ·2·· · ··A.· ·Understand.··But I should at least check my work ·2···back and check it.··And I took the other guy's opinion ·3···that I did and see where the problem was.··Because anybody ·3···into the consideration that wanted to check if it's done ·4···can step foot there and do anything. ·4···right. ·5·· · · · · · · ·· So he didn't give me the chance, okay.··It ·5·· · ··Q.· ·So sometime between September 22nd, when Donley ·6···didn't leak at that moment when it was installed.··But he ·6···said:··Hey, there's a problem with these drains and ·7···didn't give me the chance. ·7···they're not right and the flood, you found out about it, ·8·· · ··Q.· ·Okay.··Thank you for that. ·8···and you and Mr. Delgado planned to go and check it out? ·9·· · · · · · · ··I have a little bit more.··Thank you for ·9·· · ··A.· ·I was planning, yeah. 10···your patience.··I know that it's been long day. 10·· · ··Q.· ·Okay. 11·· · · · · · · ··We retained an expert witness, Chantell 11·· · ··A.· ·Forced to go check out what was the problem, but 12···Cornett.··And she did an investigation and looked at all 12···we never got the chance. 13···of the contracts and records and materials, and there's 13·· · ··Q.· ·Okay.··Well, September 22nd is several weeks, you 14···something in her affidavit I want to ask you about. 14···know, at least a couple of weeks between September 22nd 15·· · · · · · · ··The information she had was that on about 15···and the flood on October 10th. 16···September 22nd, 2021, prior to the flood, Donley 16·· · · · · · · ··Did you ever go to the home during that 17···air-conditioning came out to Mr. Kestenbaum's home and was 17···period of time, Mr. Kestenbaum's home? 18···doing some plumbing and basically reported to 18·· · ··A.· ·I believe we went back.··It was no flood.··And 19···Mr. Kestenbaum:··Hey, the water lines and drain, et 19···then they were away for the weekend.··We don't work.··And 20···cetera, involving the washing machine are improper.··They 20···then when they came back on Sunday, they said it was 21···weren't properly done. 21···flooded. 22·· · · · · · · ··Did you ever hear about that in September of 22·· · ··Q.· ·Okay.··So -- 23···2021? 23·· · ··A.· ·But during the week it didn't happen, any flood. 24·· · ··A.· ·Yes, from his wife. 24·· · ··Q.· ·So is it your testimony, then, between 25·· · ··Q.· ·Okay.··And was that the text? 25···September 22nd of '21 and the flood, you and Mr. Delgado

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·1·· · ··A.· ·The text, yes. ·1···called, e-mailed, went to the home of Mr. Kestenbaum to ·2·· · ··Q.· ·Also in this affidavit of this expert, she noted ·2···try to take a look at the drains and fix them and they ·3···that Mr. Kestenbaum and/or his wife contacted you ·3···weren't home, or what happened? ·4···regarding what Donley said about these drains in the ·4·· · ··A.· ·I don't recall exactly, but I know that we went ·5···laundry room.··And, according to this expert, you or your ·5···back and there was no -- ·6···plumber responded that the installation of the drains and ·6·· · ··Q.· ·I'm sorry.··You actually went back and looked at ·7···the piping in the laundry room, quote, met industry ·7···the drain and looked at the lack of a washer box? ·8···standards. ·8·· · ··A.· ·We looked at it.··There was no leak.··No problem. ·9·· · · · · · · ··Did you tell Mr. Kestenbaum that? ·9···And then all of a sudden it was a flood. 10·· · ··A.· ·Met what? 10·· · ··Q.· ·Was the washer running at that time? 11·· · ··Q.· ·Met industry standards. 11·· · ··A.· ·I don't recall that. 12·· · ··A.· ·No. 12·· · ··Q.· ·Okay. 13·· · ··Q.· ·Okay.··Did you ever have Mr. Delgado contact the 13·· · ··A.· ·I don't recall that. 14···Kestenbaums or Donley or anybody -- 14·· · ··Q.· ·Was Mr. Delgado with you? 15·· · ··A.· ·No. 15·· · ··A.· ·I believe, yeah, he was with me. 16·· · ··Q.· ·-- else to talk about the drain? 16·· · ··Q.· ·And it was just one time? 17·· · ··A.· ·No. 17·· · ··A.· ·One time.··And that was -- 18·· · ··Q.· ·Talk about the pipes? 18·· · ··Q.· ·Was Mr. Kestenbaum home? 19·· · ··A.· ·No. 19·· · ··A.· ·I don't recall that.··He was in and out all of 20·· · ··Q.· ·Talk about the lack of a washer box? 20···the time -- most of the time. 21·· · ··A.· ·No. 21·· · ··Q.· ·What about his family?··Was anybody -- was any 22·· · ··Q.· ·Did you ever discuss it with Alberto? 22···member of his family -- 23·· · ··A.· ·I discussed it.··I don't recall exactly that I 23·· · ··A.· ·Probably his wife.··I don't recall. 24···discussed it regarding that, but -- 24·· · ··Q.· ·So I just want to understand.··Your memory is 25·· · ··Q.· ·And that was -- 25···that you went back one time with Mr. Delgado.··And just

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·1···tell me your best memory.··Was anyone else there? ·1···flood? ·2·· · ··A.· ·Someone was.··No, I don't recall it. ·2·· · ··A.· ·I don't recall meeting. ·3·· · ··Q.· ·And after that visit, did you e-mail, text, call, ·3·· · ··Q.· ·You don't recall being at the home? ·4···write a letter to Mr. Kestenbaum and say:··Hey, ·4·· · ··A.· ·I don't remember exactly if it was that day. ·5···Mr. Delgado and I went out there.··We checked it out.··And ·5·· · ··Q.· ·So -- ·6···it's fine.··It's safe.··It's okay? ·6·· · ··A.· ·I cannot comment yes or no. ·7·· · · · · · · ··Did you ever do that? ·7·· · ··Q.· ·The flood happened over the weekend, right? ·8·· · ··A.· ·I don't recall that. ·8·· · ··A.· ·Yeah.··I believe he came back Sunday.··They came ·9·· · ··Q.· ·All right.··So no communication -- ·9···back Sunday.··Saturday or Sunday, 'cause -- 10·· · ··A.· ·I can't say no or yes.··I don't recall that as 10·· · ··Q.· ·If it happened -- go ahead. 11···far as that. 11·· · ··A.· ·-- because it was Monday. 12·· · ··Q.· ·So no communication between you and Mr. Delgado 12·· · · · · · · ·· As I recall, it was in my mind that I was 13···that you're aware of and the Kestenbaums or any member of 13···wanting to go and check it out on Monday morning. 14···the Kestenbaum family about the drain being checked out 14·· · ··Q.· ·Okay.··When you heard about the flood -- 15···and we thought it was fine? 15·· · ··A.· ·Yeah. 16·· · ··A.· ·I don't recall that. 16·· · ··Q.· ·-- how many days before you learned about the 17·· · ··Q.· ·Now, you agree, though, that if they had a big 17···flood were you at the house? 18···flood and it was out of the laundry room, and the drain 18·· · ··A.· ·A few days.··It should have been by middle of the 19···didn't sufficiently drain, then there's a problem, right? 19···week or something. 20·· · · · · · · ··Do you agree if there's a flood like that, 20·· · ··Q.· ·So sometime a few days before the flood, you were 21···there's a problem? 21···at the home? 22·· · ··A.· ·Yes, if it's a flood, it is a problem. 22·· · ··A.· ·Yes. 23·· · ··Q.· ·Okay. 23·· · ··Q.· ·And what was your purpose for being at the home 24·· · ··A.· ·But the cause of it, I don't -- I never had a 24···on that occasion? 25···chance to look what was the cause exactly. 25·· · ··A.· ·Job site visit, probably.

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·1·· · ··Q.· ·Do you agree that had you or Mr. Delgado ·1·· · ··Q.· ·Okay. ·2···installed a washer box, that the flood of the house would ·2·· · ··A.· ·Job site visit.··I didn't go for -- I went there ·3···have been avoided? ·3···if there was a reason to go. ·4·· · · · · · · ··MR. STRAUGHN:··Form. ·4·· · ··Q.· ·Okay.··So in that last visit, a few days before ·5·· · · · · · · ··THE WITNESS:··I don't recall that.··No ·5···the flood, who was with -- did you have any of your ·6···comment on that. ·6···employees or subcontractors with you? ·7·· · ··Q.· ·BY MR. MOULTON:··It's certainly possible; isn't ·7·· · ··A.· ·It's hard to recall.··Probably they were working ·8···it? ·8···on the master bathroom.··It's hard to recall. ·9·· · ··A.· ·It is. ·9·· · ··Q.· ·Okay.··And that last visit, a few days before the 10·· · ··Q.· ·And that's the whole reason you have a washer box 10···flood, did you meet with Mr. Kestenbaum? 11···is in case you have a flood like this, true? 11·· · ··A.· ·His wife, I believe or you. 12·· · ··A.· ·True. 12·· · ··Q.· ·Is that a yes? 13·· · · · · · · ··MR. MOULTON:··Thank you for your patience. 13·· · ··A.· ·I don't recall.··I'm not 100 percent sure. 14···I don't have any further questions. 14·· · ··Q.· ·And that last visit to the home, before the 15·· · · · · · · ··MR. STRAUGHN:··We'll read and sign. 15···flood, a few days before the flood, did you inspect the 16·· · · · · · · ··MR. HERNANDEZ:··I do have some follow-up. 16···plumbing connecting to the washing machines? 17··· 17·· · ··A.· ·I recall that we inspected. 18·· · · · · · · · · · · ·· FURTHER EXAMINATION 18·· · ··Q.· ·Okay. 19···BY MR. HERNANDEZ: 19·· · ··A.· ·Delgado, and it was fine. 20·· · ··Q.· ·So, Mr. Syla, there's been quite a bit of 20·· · ··Q.· ·And at that time -- 21···testimony about what happened between the Donley visit on 21·· · ··A.· ·I don't know the time period we inspected it.··It 22···or about September 22nd and the flood, which occurred on 22···was fine. 23···or about the 10th or 11th of October. 23·· · ··Q.· ·And at that last visit before the flood, did you 24·· · · · · · · ··So focusing in on that time frame, do you 24···turn the water valve on? 25···recall meeting with Mr. Kestenbaum the Friday before the 25·· · ··A.· ·I don't recall that, if I turned --

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 30 (Pages 117-119) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 117 Page 119 ·1···STATE OF ARIZONA· · · ·) ·1·· · ··Q.· ·Okay. ·· ·· · · · · · · · · · · )· ss. ·2·· · ··A.· ·-- I don't recall that, if it was before or ·2···COUNTY OF MARICOPA· · ·) ·3··· ·3···prior. ·· ·· · · · ··BE IT KNOWN that the foregoing proceedings ·4···were taken before me; that the witness before testifying ·4·· · · · · · · ··MR. HERNANDEZ:··No further questions for ···was · duly sworn by me to testify to the whole truth; that ·5···the foregoing pages are a full, true and accurate record ·5···today's purpose. ···of · proceedings, all done to the best of my skill and ·6·· · · · · · · ··Again, we reserve our right to call Mr. Syla ·6···ability; that the proceedings were taken down by me in ···shorthand · and thereafter reduced to print under my ·7···back once additional documents are produced in the case. ·7···direction. ·8··· ·8·· · · · · · · ··MR. STRAUGHN:··Read and sign. ·· ·· · · · ··I certify that I am in no way related to any ·9···of the parties hereto nor am I in any way interested in ·9·· · · · · · · ··(The deposition concluded at 1:25 p.m.) ···the · outcome hereof. 10··· 10··· 11·· · · · · ··[X]··Review and signature was requested. 11··· ·· ·· · · · ··[ ]··Review and signature was waived. 12·· · · · · ··[ ]··Review and signature not required. 12··· ·· ·· · · · ··[ ]··Review and signature was requested, but 13···deponent did not do so within 30 days after notification. 13··· 14·· · · · · ··I certify that I have complied with the 14··· ···ethical · obligations set forth in ACJA 7-206 (F)(3) and 15···ACJA 7-206 (J)(1)(g)(1) and (2).··Dated at Phoenix, 15··· ···Arizona, · this 22nd of October, 2022. 16··· 16··· 17·· · · · · · · · ·/s/ Anita Landeros ·· ·· · · · · · ··_________________________ 17··· 18·· · · · · · · · · ANITA · LANDEROS, RPR 18··· ·· ·· · · · · · · · Certified · Reporter 19·· · · · · · · · · Arizona · CR No. 50538 19··· 20··· ·· ·· · · · · · · ··*· ··*· ··*· ··*· ··*· ··* 20··· 21··· ·· ·· · · · ··I certify that ANITA LANDEROS REPORTING, INC., 21··· 22···has complied with the ethical obligations set forth in 22··· ···ACJA · 7-206 (J)(1)(g)(1) through (6). 23··· 23··· ·· ·· · · · · · · ·/s/ Anita Landeros 24·· · · · · · ··________________________________ 24··· ·· ·· · · · · · ··ANITA LANDEROS REPORTING, INC., 25·· · · · · · · · · Registered · Reporting Firm 25··· ·· ·· · · · · · · · · Arizona · RRF No. R1077

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·1·· · · · · · · · · · · SIGNATURE · PAGE ·2··· ·3··· ·4··· ·5·· · · · · ··I, the undersigned, say that I have read the ·6···foregoing transcript of testimony taken on September 29, ·7···2022, and I declare, under penalty of perjury, that the ·8···foregoing is a true and correct transcript of my testimony ·9···contained therein. 10·· · · · · ··EXECUTED this _____ day of _______________, 11···2022. 12··· 13··· 14···________________________ 15···ERMAL SYLA 16··· 17··· 18··· 19··· 20··· 21··· 22··· 23··· 24··· 25···

ANITA LANDEROS REPORTING, INC. (602) 230-8793 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2023-08164 Arizona Registrar of Contractors,

COMPLAINANT, v. CITATION N & E Construction LLC, License No. ROC 291996,

RESPONDENT.

The Registrar issues this Citation to N & E Construction LLC (“Respondent”) under A.R.S. §§ 32-1154(B) and 32-1155(A). If Respondent fails to answer this Citation by October 19, 2023, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). JURISDICTION This Citation and Complaint is issued pursuant to A.R.S. § 32-1101 et seq., which authorizes the Registrar to impose disciplinary sanctions against licensees for violations of Title 32, Chapter 10 of the Arizona Revised Statutes. FACTUAL ALLEGATIONS of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 1. In April 2014, the Registrar issued License No. 291996, a B General Residential Contractor License, to Respondent. See Exhibit 1. 2. A class B General Residential Contractor must subcontract to an appropriately licensed contractor all work related to electrical, and plumbing. A.A.C. R4-9-103(B). 3. Jozef Cudzich was named as the 25% owner-member and the qualifying party on Respondent’s license. Exhibit 1. 4. Under A.R.S. § 32-1101(A)(8), the qualifying party is the person “who is responsible for a licensee’s actions and conduct performed under the license” and who is either an owner of the licensee, or regularly employed by the licensee. 5. Ermal Syla was named as a 75% member. 6. Mr. Syla and Mr. Cudzich signed the application form certifying “that I have reviewed the entire contents of this application and all statements, answers, and representations made in this application, including all supplementary statements attached hereto, are true and accurate…I understand that pursuant to A.R.S. §§ 32-1154(A)(6)(20) & 32-1122(D) providing false information is cause for denial of this application and cause for discipline of ROC licenses.” Exhibit 1. 7. Since 2014, other than Mr. Syla’s father, the Respondent had no employees. Exhibit 3 p. 15. 8. In May 2014, one month after licensure, Mr. Cudzich conveyed his 25% membership interest to Mr. Syla, which made Mr. Syla the 100% owner of Respondent. Exhibit 2. 9. Since 2014, although named as the qualifying party for Respondent’s license, Mr. Cudzich had “no role at all” in Respondent’s company. Exhibit 3 pp. 13-14. 10. Mr. Syla referred to Mr. Cudzich as the cosigner so Mr. Syla could get licensed. Exhibit 3 pp. 100-101. 11. However, Respondent never notified the Registrar that Mr. Cudzich had no role at all of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 in the Respondent, had disassociated as the qualifying party, and had sold his interest in Respondent. 12. Under A.R.S. § 32-1127.01, Respondent was required to notify the Registrar that Mr. Cudzich ceased to be connected with the licensee and had disassociated within 15 days of Mr. Cudzich’s disassociation. 13. Under A.R.S. § 32-1122(B), Respondent was required to notify the Registrar within 30 days of a change to the members or 25% owners of an LLC. 14. On or about April 7, 2020, Respondent renewed its license. Exhibits 9-10. 15. On or about March 31, 2022, Respondent renewed its license. Exhibit 4. 16. Had the Registrar known that Mr. Cudzich had ceased to be a member, 25% owner, or qualifying party to the Respondent, the Registrar would not have renewed Respondent’s license. 17. On or about April 22, 2021, Respondent entered into a contract for over $30,000 with Mr. Kestenbaum to perform construction work including a bath and kitchen remodel at the Kestenbaum residence in Scottsdale, Arizona. Exhibits 3, 5-6. 18. The work included plumbing work. Exhibits 3, 5-6. 19. The plumbing work was performed by Alberto Delgado. Exhibit 3 pp. 24-25, 107- 108. 20. Respondent knew Mr. Delgado was not a licensed plumber when he was engaged to perform plumbing work at the Kestenbaum residence. Exhibit 3 pp. 20-22. 21. Respondent believed that the plumbing work performed by Mr. Delgado was covered by Respondent’s license. Exhibit 3 pp. 29-30. 22. The Respondent’s work at the Kestenbaum residence included installing water lines and connecting the plumbing to the washing machine. Exhibit 3 pp. 50, 77-78, 82, 93-94. 23. Respondent performed work on the project until October 10, 2021 when a plumbing of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 leak occurred involving the washing machine. Exhibit 3 pp. 111-112. 24. On or about October 13, 2022, Mr. Kestenbaum filed a complaint with the Registrar of Contractors regarding the work. Exhibit 7. 25. On or about December 23, 2022, the Registrar closed the complaint pending civil litigation between the parties regarding the work. Exhibit 8. 26. On June 23, 2023, the court granted partial summary judgment to Mr. Kestenbaum, and found that Respondent “was negligent in having [the plumbing work] done by unlicensed plumbers who were not under the qualifying party’s supervision.” Exhibit 11. The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating:

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). ALLEGED VIOLATIONS

Charge 1: A.R.S. § 32-1154(A) – The holder of a license or any person named on a license pursuant to this chapter may not commit any of the following acts or omissions: (9) Attempting to evade this chapter by: (a) Aiding or abetting a licensed or unlicensed person. (b) Acting or conspiring with a licensed or unlicensed person. (c) Allowing one’s license to be used by a licensed or unlicensed person. (d) Acting as agent, partner, associate or otherwise of a licensed or unlicensed of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 person. In 2014, Respondent received a class B General Residential Contractors license which named Mr. Syla, and Mr. Cudzich as owners of the Respondent. Factual Allegations Paragraphs 1-3, 5. Respondent had no other employees than Mr. Syla’s father. Par. 7. Respondent entered a contract to perform remodeling and plumbing work at the Kestenbaum residence in Arizona. Par. 17-18. Respondent received payment for the remodeling project. Respondent retained Mr. Delgado, a person that Respondent knew to not be a licensed plumber, to perform the plumbing work. Par. 19-22. By retaining an unlicensed person to perform plumbing work at the Kestenbaum residence, Respondent violated A.R.S. § 32-1154(A)(9).

Charge 2: A.R.S. § 32-1154(A) – The holder of a license or any person named on a license pursuant to this chapter may not commit any of the following acts or omissions: (18) Failure to notify the registrar in writing within a period of fifteen days of any disassociation of the person who qualified for the license. The license must qualify through another person within sixty days after the date of disassociation.

In 2014, Respondent received a class B General Residential Contractors license which

named Mr. Syla, and Mr. Cudzich as owners of the Respondent. Par. 1-3, 5. Mr. Cudzich was

also named as the qualifying party. Par. 3. The qualifying party is responsible for licensee’s

actions, and must be either an owner or regularly employed by the Respondent. Par. 4. After

May 2014, Mr. Cudzich ceased to be an owner of Respondent, and was not an employee. Par.

7-8. Since 2014, Mr. Cudzich was not acting as the qualifying party, and had “no role at all”

with Respondent. Par. 9. Nobody ever informed the Registrar that Mr. Cudzich has

disassociated as the qualifying party. Par. 11. Respondent and Mr. Cudzich were required to

notify the Registrar of his change in ownership, and disassociation as the qualifying party. Par.

12-13. By failing to notify the Registrar that Mr. Cudzich had disassociated as the qualifying of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 party, Respondent violated A.R.S. § 32-1154(A)(18). Charge 3: A.R.S. § 32-1154(A) – The holder of a license or any person named on a license pursuant to this chapter may not commit any of the following acts or omissions:

(19) Subsequent discovery of facts that if known at the time of issuance of a license or the renewal of a license would have been grounds to deny the issuance or renewal of a license.

In 2014, Respondent received a class B General Residential Contractors license which named Mr. Syla, and Mr. Cudzich as owners of the Respondent. Par. 1-3, 5. Mr. Cudzich was also named as the qualifying party. Par. 3. The qualifying party is responsible for licensee’s actions, and must be either an owner or regularly employed by the Respondent. Par. 4. After May 2014, Mr. Cudzich ceased to be an owner of Respondent, and was not an employee. Par. 7-8. Since 2014, Mr. Cudzich was not acting as the qualifying party, and had “no role at all” with Respondent. Par. 9. Nobody ever informed the Registrar that Mr. Cudzich has disassociated as the qualifying party. Par. 11. Respondent and Mr. Cudzich were required to notify the Registrar of his change in ownership, and disassociation as the qualifying party. Par. 12-13. Respondent repeatedly renewed its license, including in 2020, and 2022. Par. 14-15. Had respondent notified the Registrar that Mr. Cudzich had disassociated and had no role at all in Respondent, the Registrar would not have renewed the license. Par. 16. By failing to notify the Registrar that Mr. Cudzich had disassociated as the qualifying party, and then renewing its license Respondent violated A.R.S. § 32-1154(A)(19).

Charge 4: A.R.S. § 32-1154(A) – The holder of a license or any person named on a license pursuant to this chapter may not commit any of the following acts or omissions: (9) Attempting to evade this chapter by: (a) Aiding or abetting a licensed or unlicensed person. (b) Acting or of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 conspiring with a licensed or unlicensed person. (c) Allowing one’s license to be used by a licensed or unlicensed person. (d) Acting as agent, partner, associate or otherwise of a licensed or unlicensed person. In 2014, Respondent received a class B General Residential Contractors license which named Mr. Syla, and Mr. Cudzich as owners of the Respondent. Factual Allegations Paragraphs 1-3, 5. Mr. Cudzich was also named as the qualifying party. Par. 3. The qualifying party is responsible for licensee’s actions, and must be either an owner or regularly employed by the Respondent. Par. 4. Mr. Syla and Mr. Cudzich certified that Mr. Cudzich was the qualifying party. Par. 6. After May 2014, Mr. Cudzich ceased to be an owner of Respondent, and was not an employee. Par. 7-8. Since 2014, Mr. Cudzich was not acting as the qualifying party, and had “no role at all” with Respondent. Par. 9. When they applied for the license, Mr. Syla and Mr. Cudzich had no intent that Mr. Cudzich would in fact be an owner-member or act as the qualifying party after Respondent received its license. After the license was issued, Mr. Syla and Respondent continued to portray to the Registrar that Mr. Cudzich was an owner-member and qualifying party of the Respondent by failing to notify the Registrar that Mr. Cudzich sold his interest and had no role at all. By applying for and receiving a license with no intent to have Mr. Cudzich be an owner or the qualifying party, Respondent and Mr. Syla attempted to evade the chapter by conspiring with Mr. Cudzich and violated A.R.S. § 32-1154(A)(9). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-08164. How to File a Written Answer: Respondent’s written answer may be submitted in the of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than October 19, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated October 3, 2023. of 10

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, October 3, 2023 to:

Respondent Certified Mail No: [number redacted]

N & E Construction LLC 1401 N Cliffside Dr. Gilbert, AZ 85234-2660

Copy mailed by USPS First Class mail this same date to: N & E Construction LLC 1401 N Cliffside Dr. Gilbert, AZ 85234-2660

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar

Registrar’s Counsel Assistant Attorney General [email redacted] Case No. 2023-08164 / rs

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 EXHIBIT 1 EXHIBIT 2 EXHIBIT 3 Page 1 (Pages 1-4) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 1 Page 3 IN THE SUPERIOR COURT OF THE STATE OF ARIZONA 1 EXHIBITS IN AND FOR THE COUNTY OF MARICOPA Deposition Exhibits Description PAGE 3 4 Defendant N&E Construction, 51 KENNETH KESTENBAUM, ) ) LLC's Supplemental Responses to Plaintiff, ) 4 Plaintiff Kenneth Kestenbaum's ) First Set of Requests for vs. ) No. CV2021-016451 ) 5 Production of Documents and N&E CONSTRUCTION, LLC, an Arizona ) Tangible Things (5 pages) Limited Liability Corporation, ) ) 6 Defendant. ) 7 E-mail dated October 4, 2021, to 68 from Ermal Syla and contract (Bates ADVN&E000001 02, 03 (3 pages) DEPOSITION OF ERMAL SYLA 11 6 Twenty Day Preliminary Notice 78 (Bates ADVN&E000056, 57) Phoenix, Arizona September 29, 2022 12 (2 pages) 10:00 a.m. 13 14 7 Text message and pictures 87 (Bates ADVN&E000025) (1 page) 15 16 E-mail dated September 24, 2021, 91 17 to REPORTED BY: Accounts Receivable Donley ANITA LANDEROS, RPR 18 Service (Bates ADVN&E000082 through Certified Reporter 98) (17 pages) Certificate No. 50538 19 PREPARED FOR: 20

Page 2 Page 4 INDEX 1 DEPOSITION OF ERMAL SYLA 2 was taken on September 29, 2022, commencing at 9:56 a.m., WITNESS PAGE 3 ERMAL SYLA 4 Examination by Mr. Hernandez 5, 114 Reporter in the State of Arizona. Examination by Mr. Moulton 100 6 MR. HERNANDEZ'S REQUEST 7 COUNSEL APPEARING: Page Line 8 For the plaintiff: 14 9 By: MR. ISAAC P. HERNANDEZ 30 15 Hernandez Law Firm, PLC 05 10 11 12 EXHIBITS 13 For the defendant: Deposition By: MR. TERRY W. STRAUGHN Exhibits Description PAGE Bremer Whyte Brown & O'Meara, LLP Defendant N&E Construction, 35 15 LLC's, Supplemental Responses to Plaintiff Kenneth Kestenbaum's 16 First Set of Uniform 17 Interrogatories (7 pages) 18 For State Farm Insurance: 2 Kestenbaum v. N&E, 45 19 BWBO File No. 1448.025 By: MR. TIMOTHY LEE MOULTON (Bates N&E 000046, 47, 48) 20 The Moulton Law Firm, P.C. (3 pages) 3 N&E Construction Estimate 47 000338 dated 4-22-21; Invoice 000104 dated 7-26-21 22 (Bates N&E 000001, 02, 03, 04) 23 (5 pages) 24 Also present was Mr. Kenneth Kestenbaum. 25

ANITA LANDEROS REPORTING, INC. Page 2 (Pages 5-8) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 5 Page 7

ERMAL SYLA, 1 hour on the hour. called as a witness herein, after having been first duly 2 If you need to take a break at any time for sworn, was examined and testified as follows: 3 any reason, whether it's to get a drink of water, run to 4 the bathroom, or just stretch your legs, please, let me EXAMINATION 5 know and we are more than happy to accommodate. BY MR. HERNANDEZ: 6 The only thing to avoid is that it does not Q. All right. Good morning, Mr. -- is it Syla or 7 reflect well on the record when the witness asks to take a Syla? 8 break during a pending question. Do you understand that? A. Whichever way, Syla, Syla. 9 A. Yes. Q. Mr. Syla, my name is Isaac Hernandez, and I'm the 10 Q. Your attorney may raise certain objections attorney for the plaintiff, Mr. Kenneth Kestenbaum, in 11 throughout the course of your deposition today. You're this case. 12 still obligated to give me your best answer, unless your Although you did it off the record, I'm 13 attorney instructs you not to answer a question. Do you going to ask you to please state and spell your full name 14 understand that? including any middle names. 15 A. Yes. A. Ermal Syla. 16 Q. If you need me to repeat or rephrase or slow down Q. Any middle names? 17 in my questioning for any reason, please, let me know. A. No. 18 Again, I'm more than happy to accommodate. Q. And can you please spell that for us on the 19 And the other thing I'd like to tell record? 20 witnesses before we get started, Mr. Syla, is that we're A. E-r-m-a-l S-y-l-a. 21 talking about things in this case that happened about a Q. Have you ever been deposed before, Mr. Syla? 22 year ago, and sometimes it's even longer. A. No. 23 When I ask you for dates -- when I ask you Q. Have you ever testified in court before? 24 to describe certain events, I'm not asking you to give me A. No. 25 an exact answer. In other words, if I ask you when a

Page 6 Page 8

Q. Do you understand that your testimony today in 1 certain event happened and you say you don't remember, I'm this room you're providing is just as if you were in the 2 going to ask you to give me at least a month or a year. courtroom in front of the judge under penalty of perjury? 3 And give me your best estimate of that month or year, and A. Yes. 4 if I need to go back in and ask you further details about Q. What I'd like to do, Mr. Syla, is go over some 5 when something may have happened, it's my job to do that, preliminary instructions that you have already covered 6 but it's your job to give me your best answer, okay? with your attorneys, but just so that you and I have an 7 A. Yes, okay. understanding between us of the rules of the road for 8 Q. Have you taken any drugs or any substance that today, I'd like to go over those with the witness before 9 would prohibit you from providing truthful testimony we get started. 10 today? The first one the court reporter has already 11 A. No. kind of touched on. It's really important that you do 12 Q. Other than meeting with your attorneys, did you your best to avoid responding with uh-uhs or uh-uhs or 13 do anything to prepare for your deposition today? nods of the head, because the court reporter cannot pick 14 A. No. those responses up on the record. So please provide 15 Q. Did you review any documents to prepare for your audible responses, yes and no, when appropriate. 16 deposition today? A. Okay. 17 A. No. Q. It's also important for us to not speak over one 18 Q. Other than your attorneys, did you discuss your another. So, please, allow me the courtesy of finishing 19 deposition testimony with anyone before today? my question before you answer, even if you can anticipate 20 A. No. the answer or know what the answer is going to be, let me 21 Q. What is your current address, Mr. Syla? finish the question first, okay? 22 A. Okay. 23 Q. I do anticipate we'll be here for probably in the 24 Q. Have you gone by any other names in your adult two- to three-hour range. I try to take a break every 25 life?

ANITA LANDEROS REPORTING, INC. EXHIBIT 4 Page 3 (Pages 9-12) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 9 Page 11

A. No, just my name. 1 Q. And what are your personal e-mail addresses? Q. Okay. Do you have any college or university 2 A. Syla or experience? 3 Q. Any others? A. Community college. 4 A. Not at the moment, personal. I don't have it for Q. Okay. And when was that? 5 personal. Any other e-mails or in general you're asking? A. That was in 2009, '10, around then. 6 Q. In general, do you have any other e-mails you Q. And which community college? 7 use? A. Glendale. 8 A. Yes. Q. Did you get a degree? 9 Q. And what are those? A. No. 10 A. Q. Roughly, for what period of time did you attend 11 Q. So G-E Number 2 ventures? or take classes at Glendale Community College? 12 A. A. About a year and a half -- a year and a half of 13 Q. All right. Mr. Syla, how many employees -- classes. 14 you're an owner of the company, right? Q. And what was the general nature of the classes 15 A. Yes. that you took? 16 Q. Of N&E? A. Just general subjects. 17 A. Right. Q. Okay. And other than the time you spent at 18 Q. Are there any other owners aside from yourself? Glendale Community College, do you have any other 19 A. No. I'm just the owner. professional licenses or certifications? 20 Q. Okay. A. No. 21 A. There used to be Joseph, but now it's just me. Q. Are you a licensed contractor? 22 Q. When did you start the company? A. Yes. 23 A. The company, 2014. Yeah, eight years. '14. Q. And how long have you been a licensed contractor? 24 Q. And when you started the company initially, there A. For about eight years, I believe, almost eight 25 was another owner?

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years. Seven or eight years. Eight years. 1 A. Part owner, yeah. Q. What's your cell number, Mr. Syla? 2 Q. And what's his name? A. 3 A. He cosigned. Joseph -- not on my mind right now Q. Is that the only cell phone number that you've 4 the last name. Cosigner. used since September of 2021? 5 Q. Let me give you a name because I think I have it. A. Yes. 6 I'm just going to spell it for you. Q. How many cell phones have you used since 7 A. Yes. September of 2021? 8 Q. And how do you say his name? A. Just this one. 9 A. Joseph. Q. Okay. So the phone that you have now is the same 10 Q. The last name? one that you had back in September of 2021? 11 A. A. Yes. I don't change my phones much. 12 Q. And how did you know -- did you know Joseph Q. Okay. And who is your cell phone provider? 13 before you became partners with him? A. T-Mobile. 14 A. Yeah, yeah. Q. How long has T-Mobile been your cell phone 15 Q. And who is he? provider? 16 A. We did some work. A friend of a friend. We did A. It's been five years. From Verizon, five, six. 17 some work, relationship work. Q. And I have one e-mail address for you, Mr. Syla: 18 Q. What do you mean by that? ; is that right? 19 A. Like I did some work for him. We did some A. Yes. 20 projects together. Q. Do you use any other e-mails for work-related 21 Q. Okay. purposes? 22 A. And that's how we became a relationship. A. No, not for work. Mostly this one. 23 Q. And you mentioned or testified at some point you Q. Do you have any personal e-mail addresses? 24 became the sole owner of the company; is that right? A. Yes, yes. 25 A. Yeah, recently, yeah.

ANITA LANDEROS REPORTING, INC. Page 4 (Pages 13-16) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 13 Page 15 Q. So how recently? When did that happen? 1 Kestenbaum home? A. Six months. Six months ago. Six months ago, I 2 A. No. believe. You send the paper and then they just e-mail you 3 Q. Did you contact him to solicit or ask advice on back through the license of contractors, but in my mind -- 4 what to do? I don't know exact date. It's about -- no more than six 5 A. No. months, I believe. 6 Q. Do you have Joseph's cell phone number? Q. Okay. 7 A. I believe I do. A. Six months. 8 Q. What is that? Q. And you mentioned the Registrar of Contractors. 9 A. Should I look into that? You sent in some paperwork to the Registrar of Contractors 10 Q. Sure. to remove him as owner of the company? 11 A. A. Yes, yes. That's what they do. 12 Q. How many employees has the company had since you Q. Did anybody help you with that, or did you and 13 started in 2014 aside from yourself? Joseph do that on your own? 14 A. "Employees," you mean with subs and -- or just. A. I did it on my own, yeah. I did it. He cosigned 15 Q. W-2 employees that you have on payroll? and then recently I'm on my own. 16 A. Just one, just one, my dad. Q. And what prompted the change to remove Joseph as 17 Q. And you said just one, and that's your dad? part owner of the company? 18 A. Uh-huh. A. Because after certain years, you can go on your 19 Q. And who is that? own. 20 A. Syla. Q. And what do you mean? 21 Q. And your dad you have as a W-2 employee? A. After certain years, you can be by yourself. 22 A. I have to check. I have him in insurance, but Q. Okay. 23 W-2, I'm not sure. I'm not sure. I mostly didn't have A. And I decided to go on my own. 24 W-2. Most of the employees were 1099s. And that's what Q. Okay. From 2014 until six months ago, what role 25 my employees were. Most of the employees were 1099 or

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did Joseph have -- 1 other subs in their own trades. A. No role. 2 Q. Okay. So your dad, Nuredin, was the only Q. -- in managing? 3 employee that you had, right, and the others were MR. STRAUGHN: You have to let him finish 4 subcontractors? the full question. 5 A. Yes, yes. THE WITNESS: I'm sorry. 6 Q. D&M Electric, do you know who that is? Q. BY MR. HERNANDEZ: That's okay. It takes a 7 A. Yes, electrical company. little practice. So the question was from 2014 until more 8 Q. And is there somebody from D&M Electric that you recently, what was his role in managing the operations of 9 typically worked with as a subcontractor? the company? 10 A. Yeah, I worked with. I worked. A. No role. 11 Q. And who did you work with from D&M Electric? Q. No role at all? 12 A. Manny and Derek. I believe they're the owners. A. No role. 13 They're the owners, Manny and Derek. Q. Did he contribute financially to funding any 14 Q. Are Manny and Derek individuals who performed projects? 15 work on the Kestenbaum home? A. No, no. 16 A. Yes, usually I see them work. Sometimes I don't. Q. Did he contribute financially to paying some 17 They have their own employees, but usually I see them contractors or employees? 18 work. A. No, no. 19 Q. Do you know if either one of them did electrical Q. Was he involved in any way in helping you 20 work on the Kestenbaum home? finalize or negotiate contracts? 21 A. Yes. A. No, just advice sometimes. If I had any 22 Q. And which of them did work on the Kestenbaum advice -- questions, but that's about it. 23 home? Q. Okay. Was Joseph involved in any way in 24 A. Both of them. I think both of them. negotiating the contract for the work you did on the 25 Q. And how do you know that?

ANITA LANDEROS REPORTING, INC. Page 5 (Pages 17-20) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 17 Page 19 A. Because I would go to job site and I would see 1 Q. And what are their cell phone numbers? them. 2 A. Q. And prior to having Manny or Derek do work on the 3 Q. And is that for Manny or Derek? Kestenbaum home, did you negotiate and discuss an 4 A. Manny. agreement for the work that they're supposed to do? 5 Q. Do you have a cell phone number for Derek? A. Of course, yes, yes. 6 A. No. Q. And how do you document that? 7 Q. Have you checked your cell phone for any text A. "Document" as far as? 8 messages with Manny regarding the work on the Kestenbaum Q. Your agreement with D&M Electric? 9 home? A. Yeah, yeah. 10 A. No, I didn't. Q. And specifically to do work on the Kestenbaum 11 Q. You haven't checked for those yet? home? 12 A. No, I didn't because it's long time ago, so I A. Yeah, yeah. 13 didn't check that further, to tell you the truth. I went Q. Did you document an agreement about the work that 14 scrolling, but it's a long time ago. So I wasn't able to they were supposed to do? 15 find anything. A. Yeah, we build a relationship. And usually 16 Q. But you have looked? ballpark area, I know what they charge. They do the work. 17 A. I've looked, yeah, yeah. I've looked if I have They send me an invoice or tell me: This is how much it's 18 any. going to cost. 19 Q. When was the last time you looked for any text Q. And so is it typical of them to send you an 20 messages with Manny about the work that was done on the invoice for the work that was done? 21 Kestenbaum home? A. Yes, usually. 22 A. When we were going through with my lawyer to Q. Did they do that for the work that they did on 23 check for any information. the Kestenbaum home? 24 Q. And I don't need to know about any conversations A. I have to go through my e-mails to check. 25 that you had with the lawyer.

Page 18 Page 20 Q. Which e-mail would you check? 1 A. Okay. A. Construction. 2 Q. Okay. Q. You haven't done that yet? 3 A. Okay. A. I went through -- it's been a while, so I have to 4 Q. Just so that we're clear going forward? look into it. I'm pretty sure it's there, but it's been a 5 A. Okay. while. It's been one year or something. Oh, I have to 6 Q. My question was: When was the last time that you check through my e-mail specifically for that address that 7 checked for text messages with Manny about the work on the they send me an invoice. 8 Kestenbaum home? Q. Okay. Other than them sending you an invoice, do 9 A. A few weeks ago. Three weeks ago -- two -- three you document an agreement beforehand of the work that 10 weeks ago. they're supposed to do? 11 Q. And you didn't find any then? A. Depends on the job. 12 A. I didn't find any as far as Kestenbaum. It's Q. Okay. 13 been quite a while. A. Depends. If it's too small, if it's too big -- 14 Q. Who's Alberto Delgado? if you build relationship with someone, you just tell them 15 A. Who is he? to go ahead and do it and send me the invoice. 16 Q. Who is he? Q. Okay. Was the job that D&M Electric did on the 17 A. He's a worker that does plumbing work, basic Kestenbaum home -- 18 plumbing work for me. A. Yes. 19 Q. How long have you worked with Mr. Delgado? Q. -- a big job or a small job? 20 A. It's been three years, I think, three years that A. Medium job, medium job. But they did the job 21 I've known him. there, yeah. 22 Q. And you identified him in the discovery Q. Do you have cell phone numbers for Manny and 23 documents -- your attorneys identified him as a Derek? 24 subcontractor; is that right? A. Yes. 25 A. Yes. I sub him work, yes.

ANITA LANDEROS REPORTING, INC. Page 6 (Pages 21-24) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 21 Page 23

Q. Mr. , does he have a registered license 1 Q. Okay. with the Registrar of Contractors? 2 A. I haven't had a problem besides this, if there A. I don't think so. 3 was a problem. Q. Did you check for it? 4 Q. Did you check your phone for text messages with A. No. I asked him. He didn't. He told me that he 5 Mr. Delgado regarding the work that was done on the doesn't have a license. 6 Kestenbaum home? Q. And when did he tell you that? 7 A. Check my phone regarding? A. When did he tell me that? 8 Q. Have you checked your phone, your cell phone, for Q. Yeah. 9 text messages with Mr. regarding the work that was A. He told me when -- a couple of years ago, I would 10 done on the Kestenbaum home? say. You know, I got to know him. I seen his work and 11 A. Depends. Regarding what specific? I don't stuff. He did work for me. 12 understand what you mean. Q. So he worked with you on other projects prior to 13 MR. STRAUGHN: When we spoke a few weeks ago him -- 14 to do the discovery responses, and you searched through A. Some other projects, basic, yes. 15 your phone for e-mails regarding the Kestenbaum house, as Q. And, Mr. Syla, I know that it's hard to get in 16 the request asks, did you find any with D&M? the habit for you -- 17 THE WITNESS: No. Delgado he's asking. A. I'm sorry. 18 MR. STRAUGHN: Oh, I'm sorry, with Delgado. Q. -- but let me finish the question, please. 19 THE WITNESS: No, I didn't find. So you worked with him on other projects 20 MR. STRAUGHN: I'm sorry. I'm trying to prior to the work that he did on the Kestenbaum home, 21 help. right? 22 MR. HERNANDEZ: That's all right. A. Yes. 23 Q. BY MR. HERNANDEZ: So you didn't look? Q. And prior to the work that he did on the 24 A. No, I didn't look as far as Delgado. Kestenbaum home, he told you that he did not have a 25 Q. Do you exchange e-mails with Mr. Delgado?

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license with the Registrar of Contractors, right? 1 A. No. A. Well, I know he didn't have a license. 2 Q. About work? Q. Before he did work on the Kestenbaum home, right? 3 A. No. A. Yes. 4 Q. So it would be through text messages? Q. Did you ever ask Mr. if he has any 5 A. No, through phone or texts. insurance coverage to cover the work that he did for you? 6 Q. So let me just try to clarify, because I don't A. I don't remember that. I don't recall that. 7 know if it's clear. Did you check your phone for text Q. Do you have any agreements with Mr. Delgado for 8 messages with Mr. Delgado about work that was done on the the work that he does for you and the company? 9 Kestenbaum home? A. Not in writing. 10 A. No, I didn't as far as Delgado, because I know -- Q. Do you have Mr. Delgado's cell phone number? 11 what am I looking for? I know that there was not much A. I do. 12 there to look. Q. And what's his cell phone number? 13 Q. Okay. So what I'm hearing you say, Mr. Syla, is A. 14 that you didn't think that there would be much there, so Q. 15 you didn't look? A. Uh-huh, yes. 16 A. No, I didn't. Yes, I didn't look. I didn't Q. When was the last time you exchanged text 17 look. messages with Mr. Delgado? 18 Q. Okay. Who is -- A. When is the last time? 19 A. Because regarding Kestenbaum, I didn't have Q. Yes. 20 anything to talk to him about it through texts. A. Recently. A few days ago. 21 Q. Okay. Q. So he's somebody that you're still using to 22 A. And that's how I remember it, so I didn't. perform plumbing work for you and the company? 23 Q. So Mr. Delgado did plumbing work on the A. Yes, on basic stuff, yeah. I trust him. He did 24 Kestenbaum home; is that right? many work for me. 25 A. Yes.

ANITA LANDEROS REPORTING, INC. Page 7 (Pages 25-28) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 25 Page 27

Q. And you don't have anything in writing that shows 1 Q. Okay. Now how far back do your text messages what work Mr. Delgado was supposed to do on the Kestenbaum 2 with Mr. Delgado go? home? 3 A. How far back? A. During the work at that time, yes. 4 Q. Do they go to September 2021 -- or we're at Q. You did? 5 October. How far back do they go? A. Yes, of course. I texted during the work when I 6 A. Okay. They go back to September 29th. did the Kestenbaum. 7 Q. And that's as far back as your text messages go? Q. So you did have text messages with Mr. Delgado 8 A. Yeah, no more. about the work that was done on the Kestenbaum home; is 9 Q. Had you gone through this exercise before today, that right? 10 Mr. Syla? Had you gone through your phone to go back into A. Yes, during that time. Yes, yes. 11 your text message history with Mr. Delgado to look for Q. Okay. 12 text messages regarding the work that was done on the A. Okay. 13 Kestenbaum home? Had you done that before today? Q. Where are the text messages? 14 A. Like this, no. A. I have to look through the phone. I have to find 15 Q. Why not? it. 16 A. Because I remember we didn't talk through the Q. Take a minute to do that, please. 17 phone -- through the text. We talked through the phone. A. It will take forever, probably, but ... 18 And, at that time, Kestenbaum didn't allow me to come Q. Mr. Syla, I know that you're looking through your 19 check for the problem, so we didn't go no further. I phone for text messages with Mr. Delgado. 20 remember. A. Yes. 21 We didn't go no further with Delgado Q. Do you have any text messages that go back to 22 regarding the problem, because he asked me: I'll be there September of 2021 with Mr. Delgado? 23 in the morning. A. That's what I'm trying to find out, but I don't 24 Kestenbaum didn't allow to check if it was think it goes that further. 25 our problem or not.

Page 26 Page 28 Q. Okay. Well, how far back can you go? 1 Q. Yeah. I'm not asking about whether you were A. I'm trying to see how far, because it's loading. 2 allowed to check if it was your problem or not. Q. Okay. I have an iPhone too, so I'm familiar with 3 The only thing I'm asking about right now is the functions. It takes a minute, yeah. 4 what you did to look for text messages with Delgado about A. I'm running through those. It's loading. 5 the work that was done on the Kestenbaum home. Q. How far back have you gone? 6 A. Okay. A. November 18th. 7 Q. And your testimony, as far as I understand, is Q. Of 2021? 8 that before today, before the last ten minutes, you never A. November 18th of 2022, I believe. '21. '21, 9 took the time to review your text messages with Delgado to yeah. 10 see if there were any text messages regarding the work on Q. So almost there? 11 the Kestenbaum home; is that right? A. Almost there. One minute. Okay. It went back 12 A. With Delgado, no. Yeah, that's right, basically and not much of a conversation that I have. October 10th 13 what you're saying. I forward the e-mail to him regarding Ken, that he had 14 Q. So before I forget, Mr. Syla, I'm going to ask issues with that. And then we talked on the phone from 15 that after the deposition today concludes, that you work that. And from that time, I have no access to go look if 16 with your attorney to review all the text messages on your it was our problem or not. 17 cell phone to see if there's anything else regarding the Q. Okay. So you have a text message from him on 18 Kestenbaum home with any of the subcontractors that October 10th? 19 performed work on the home, okay? A. From him, no. From me that I send it to him from 20 A. Okay. October 10th. 21 Q. Who is Joel Sandoval? Q. Okay. 22 A. Drywall guy, drywall. A. And I forwarded what Kestenbaum told me, and then 23 Q. Is he one of the subcontractors that you use? I believe he called me at that time because I have no text 24 A. Yeah, one of them. from him back. 25 Q. Is he registered with the Registrar of

ANITA LANDEROS REPORTING, INC. Page 8 (Pages 29-32) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 29 Page 31 Contractors? 1 time. A. I'm not -- I didn't ask him. I'm not sure of 2 Q. Do you have a cell phone for Ben? that. 3 A. For Ben, Q. How long did -- 4 Q. A. N&E it covers -- my license covers as far as 5 A. drywall. 6 Q. Okay. And the last name for Ben is M-a-r-v-e-s? Q. Okay. 7 A. Yes, that's what I have. A. Yeah. 8 Q. Okay. And having even seen his phone number in Q. How long have you worked with Mr. Sandoval? 9 your cell phone, Mr. Syla, does that refresh your A. Back and forth. I've known him for three years. 10 recollection at all as to who Ben is and what work, if The same, three, four years. 11 any, Ben did on the Kestenbaum home? Q. And you mentioned that your license covers the 12 A. I -- I'm not sure if he did some, because I drywall, right? 13 have -- it's been a while. I have employees, so I don't A. Well, my license cover most of it, everything. 14 remember as far as right now. I can look more further, You know, like GC, but, yeah. 15 but ... Q. Is it your opinion that your license also covers 16 Q. Who is Isaac Reyes? Mr. Delgado? 17 A. Isaac Reyes is tile installer. A. As far as minor plumbing, yes. 18 Q. Another subcontractor? Q. Was the plumbing that was done on the Kestenbaum 19 A. Yeah, tile that he does. home minor plumbing? 20 Q. What's Mr. Reyes' cell phone number? A. I would say, yeah, minor and basic. Nothing -- 21 A. nothing underground or nothing extremely -- but my license 22 Q. How long have you worked with Mr. Reyes? cover some of that. 23 A. A couple of years. Q. Is there a certain dollar threshold that is used 24 Q. You worked with him on projects prior to the work to determine whether plumbing work is minor versus major? 25 on the Kestenbaum home?

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A. I'm not sure. I'm not sure. I don't know what 1 A. Yes. to tell you on that. 2 Q. And do you know if he has a license with the Q. But, in your opinion, the work that Mr. Delgado 3 Registrar of Contractors? did was minor and did not require a separate license; is 4 A. I'm not sure. that right? 5 Q. Who is C. Pacheco Lazzo? A. I'm not saying that. I'm not saying that. 6 A. Cain Pacheco. Q. Okay. What is Mr. Sandoval's cell number? 7 Q. And how do you spell Cain? A. 8 A. C-a-i-n. Q. Prior to today, have you searched your cell phone 9 THE REPORTER: Can you spell Lazzo, please? for text messages with Mr. Sandoval about the work that 10 THE WITNESS: L-a-z-o. was performed on the Kestenbaum home? 11 MR. HERNANDEZ: I have it as L-a-z-z-o. A. I'm sorry. With Joel Sandoval, with Sandoval? 12 THE WITNESS: L-a-z-z-o. Q. Yes. 13 Q. BY MR. HERNANDEZ: And who is Mr. Lazzo? A. I looked at it, but I didn't find anything. 14 A. He was just handy employer -- handy sub. He did Q. Okay. And, again, I'm going to ask you to please 15 some baseboards, touchups, as I remember, at Kestenbaum. after this concludes, that you're going to work with your 16 Q. How do you pay your subcontractors? Do you pay attorney to make sure there are no text messages with Mr. 17 them cash or check? Sandoval regarding the work on the Kestenbaum home, okay? 18 A. Check, 1099. A. Okay. 19 Q. Okay. Do you have 1099s for the money that you Q. Who is Ben Marves? 20 paid all of these subcontractors in 2021? A. Ben Marves, an employee. Ben Marves. 21 A. I have, yeah, 1099, W-9s, most of them, yeah. Q. I'm asking his name -- 22 Q. And aside from the W-9s and the 1099s, I think A. It's been a long time, so ... 23 you answered the question, but let me clarify. Q. Okay. 24 Do you pay them with cash or check? A. Ben Marves. I did give some -- it's been a long 25 A. I write them a check, usually.

ANITA LANDEROS REPORTING, INC. Page 9 (Pages 33-36) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 33 Page 35

Q. Is that a personal check or a check from N&E? 1 Q. Do you do all of payroll and accounting? A. From N&E, N&E. 2 A. Uh-huh, yes. Q. Okay. Okay. What's the process you have, 3 Q. Did you have any discussion with Mr. Delgado Mr. Syla, for issuing the payments? So what I'm trying to 4 before he did the work about who would be responsible if find out is, does Delgado, for example, send you an 5 work was done poorly or needs repairs? invoice, or does he send you a text saying: This is what 6 A. No. I'm owed for this work? Or how do you negotiate that or 7 Q. Did you discuss with Mr. Sandoval before he what is your process? 8 started work on the project who would be responsible if A. Mostly word to word. 9 work was done poorly or needed repairs? Q. Mostly? 10 A. No, because I've seen -- I've worked with him A. Word to word. Some word to words. Some with 11 before. I wasn't going to hire somebody that -- you know, invoices. 12 no. I've seen their work. Q. So it just depends on the project? 13 Q. So you're assuming responsibility if they don't A. Depends on the project. Depends on the 14 do good work? Are you assuming responsibility for the relationship that you have with the person. 15 work that the subcontractors do if they don't do good Q. Okay. 16 work? A. Yeah. 17 A. Well, yeah. I'm the GCL. I take the Q. Have you looked for any invoices from any of 18 responsibility. They don't, of course. these contractors for work that was done on the Kestenbaum 19 Q. I'm going to show you what we're going to mark as home? 20 Exhibit Number 1. A. I looked. I looked. I looked. I wasn't able to 21 (Deposition Exhibit Number 1 was marked for find. Especially I looked for DM (sic) and I will look 22 identification.) furthermore to try to find invoices. 23 Q. BY MR. HERNANDEZ: If you could take a moment and Q. Aside from your text messages, where would you 24 review this document, Mr. Syla, and let me know if this is look for invoices from Delgado, Marves, Reyes or Lazzo? 25 a document that you have seen before today.

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Where would you look for those invoices? 1 A. Review documents. This is the first time that I A. Those, they won't be e-mails. 2 see with all of the names, yeah. Q. They will not be e-mails? 3 Q. And? A. No, no. They will not be e-mails. 4 A. They all look the same, but, yeah, I looked at Q. Do they ever provide you with paper copies of 5 the names. invoices? 6 Q. You're referring to the names on Page 4? A. No. 7 A. Yes, yeah. This person. Q. Handwritten notes of invoices? 8 Q. And have you verified, Mr. Syla, that the A. No. 9 responses included in this document are true and correct? Q. If they incur expenses for materials, how do they 10 A. Yes. communicate that to you? 11 Q. I'm going to ask you to turn to Page 4 of A. With materials? 12 Exhibit 1, and if you go to the first interrogatory, Q. If the contractors have to buy extra materials to 13 Non-Uniform Interrogatory Number 1, about halfway down the do the work, how does that get communicated to you? 14 page, do you see that, Mr. Syla? MR. STRAUGHN: Form and foundation. 15 A. Non-Uniform, Number 1, yeah. 16, 17, yeah. THE WITNESS: Depends. Materials usually I 16 Q. Yes? either provide -- they provide the labor. 17 A. Yes. Q. BY MR. HERNANDEZ: Okay. 18 Q. So did you understand what the question was -- A. So they call me. I don't know what to tell you. 19 what information it's asking you to provide? They call me. They text me. 20 A. Yes. Q. BY MR. HERNANDEZ: Do they send you invoices or 21 Q. And why wasn't Marves -- Ben Marves included receipts -- 22 initially in the first response that you provided to this A. No, no. I said no. 23 question? Q. -- for work? 24 A. I don't recall why it wasn't included. A. I said mostly no. 25 Q. Right.

ANITA LANDEROS REPORTING, INC. Page 10 (Pages 37-40) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 37 Page 39

This name was supplemented in a more -- a 1 were at the Kestenbaum home, right? revised response on Tuesday, two days ago. 2 A. No, I don't have any records. But I know I was My question is: Why wasn't he included when 3 there daily. you first responded to this interrogatory? 4 Q. Daily or almost daily? A. Well, I had to do -- to go over -- to do some 5 A. Almost daily. Almost every day to go check. thinking and research to -- because it was a while ago. 6 Q. Okay. How many times a week were you there? It's not the only job I had -- 7 A. Three to five days a week, when I have people Q. Okay. 8 there, of course. But sometimes I don't need to go when A. -- with Kestenbaum. 9 there's no one there -- So even if I find some more that I recall 10 Q. Right. it, I'll add it more. But I will look further in e-mails. 11 A. -- working. Whatever I find -- I'm trying to put it -- to send it to 12 Q. Your response to Interrogatory Number 3 states my lawyer. 13 that in your absence, there was nobody else there to Q. Okay. And Mr. Reyes and Mr. Lazzo, they also 14 manage or oversee the subcontractors who were doing the performed work on the Kestenbaum home, right? 15 work; is that right? A. Yes, yes. 16 A. Can you say that again, please? Q. So would you agree with me that they should have 17 Q. Sure. been identified here on Page 4 of this response to this 18 I'm just confirming and verifying your question? 19 response to Number 3. MR. STRAUGHN: That's my error. 20 A. Yeah. THE WITNESS: Yeah, sure. 21 Q. Your response to Number 3 states that you did not MR. STRAUGHN: And for completeness' sake, 22 have anybody else on site to supervise or manage the I'm happy to supplement again. It was an oversight on my 23 subcontractors in your absence; is that right? part as I was preparing the disclosure that -- the scope 24 A. That's right. of description documents and these, so, I'm happy to 25 (Mr. Kestenbaum has entered the

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supplement again. 1 proceedings.) Q. BY MR. HERNANDEZ: If you could take a minute, 2 MR. HERNANDEZ: We're almost at the hour, so Mr. Syla, to review the interrogatories on Page 5 of this 3 let's take a five-minute break. document. 4 THE WITNESS: Sure. A. Yeah. 5 (A recess was taken.) Q. Do you maintain an electronic calendar? 6 Q. BY MR. HERNANDEZ: All right. Mr. Syla, before A. No. 7 we went on our break, we were discussing your responses to Q. No? How do you keep track of which projects you 8 the interrogatories. have going on and where you need to be on any given day? 9 And following up on where we left off, for A. In my mind. 10 the time frame that you were out of town while this Q. Okay. Do you keep any record or document what 11 project was happening, where were you? work sites you're visiting on any given day? 12 A. Overseas. A. No. 13 Q. And where overseas were you? Q. Your response to Interrogatory Number 2 says that 14 A. Albania, Austria. you were on site almost daily except for the dates that 15 Q. When you're overseas, while there's an ongoing you're out of town. Do you see that? 16 project, how do you keep in touch, or how do you manage A. Which number was that? 17 the project in your absence? Q. Interrogatory Number 2. 18 A. Usually I put on hold a lot of my -- a lot of my A. Yes. 19 work. Q. Okay. 20 Q. For the work that was done on the Kestenbaum A. Of course. 21 home -- Q. And your testimony is that you don't have any 22 A. Yeah. record or calendar -- 23 Q. -- did you put it on hold while you were gone? A. No. 24 A. Not much was going on at that time as far as my Q. -- or handwritten notes that show what dates you 25 employees.

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Q. Did you put it on hold? 1 first time or second time. But, in general, I check A. On hold. Like I said, not much was going on at 2 regarding anything with a project of Kestenbaum. that time as far as my employees. 3 Q. BY MR. HERNANDEZ: So three weeks ago was the Q. Sure. And you're telling me not much was going 4 first or the second time? on. 5 A. And I know that not much -- or pretty much And my question is: For this case and the 6 anything wasn't going on when I was away. work that was going on on the Kestenbaum home, while you 7 Q. My question is: How do you know that? were away in Albania, Austria -- 8 A. Because I remember that it was put on hold. He A. Yes. 9 was waiting for materials and we didn't do much work at Q. -- did you stop the work that your contractors 10 that time. and your employees were doing on the home or not? 11 Q. Would you have exchanged e-mails and text A. I have to look back further to check on that. I 12 messages while you were out of the country with the don't recall it. 13 subcontractors who were doing work on your behalf? Q. How are you going to look back? 14 A. No. As far as I have to look more back in to it. A. I have to look back on the dates, what was going 15 But, not at that time. I remember with Kestenbaum we on at that time. I have to put my thoughts to what was 16 exchanged. going on at that time. 17 Q. With Kestenbaum you exchanged? Q. And what are you going to do to check that? 18 A. Texts. A. Check through my e-mail, through the phone, 19 Q. With who? something. But I don't recall it exactly. It's been a 20 A. With Ken. while, what was going on on that date that I was gone. 21 Q. Okay. I'm just asking about your text messages Q. And you haven't checked for that before today? 22 with your subcontractors and your employees. You haven't checked to see -- 23 A. I didn't find anything. I have to look more in A. I checked. I checked. But I wasn't able to 24 to it as far as that time. find. Like I said, I checked, but I wasn't able to find 25 Q. I'm going to ask you to turn your attention to

Page 42 Page 44 enough evidence. 1 Page Number 6 and the interrogatories. Take a minute to Q. You checked what? 2 review the Interrogatory Number 5, Mr. Syla, and let me A. I checked through the phone and through the 3 know when you're done. e-mails. 4 A. Okay. Q. When did you check through your phone and your 5 Q. Okay. Did you understand, Mr. Syla, that one of e-mails? 6 the things that this interrogatory was asking you to do A. When my lawyer was asking for anything regarding 7 was to provide an approximate start date and completion Kestenbaum. 8 date for each work item or tasks that your subcontractors Q. And remember I'm not asking about conversations 9 and employees did on the Kestenbaum home? with your attorney. I'm just asking about dates. When -- 10 A. Yes. A. A few weeks ago. 11 Q. Okay. And do you believe that you've done that Q. A few weeks ago? 12 yet? A. Yeah, a few weeks ago. 13 A. I've looked at it. I gave info, whatever I Q. And that's the first time that you -- 14 found. A. Three or four weeks ago. 15 Q. Okay. Going down to Interrogatory Number 6, did Q. Is that the first time that you looked for 16 you understand what that interrogatory was asking you for? anything to see what was going on while you were in 17 A. Yeah. Albania and Austria? 18 Q. And what do you understand that interrogatory was A. The first time? 19 asking you for? Q. Was three weeks ago the first time that you 20 A. To provide the cost for each items. checked your e-mails or text messages to figure out what 21 Q. And do you believe that you've done that? was going on on the project while you were out of the 22 A. I believe so, whatever I found, yeah. country? 23 Q. All right. I'm going to show you another MR. STRAUGHN: Form. 24 document here. We are going to mark this as THE WITNESS: I don't recall it. It was my 25 Exhibit Number 2.

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(Deposition Exhibit Number 2 was marked for 1 as Exhibit Number 3. identification.) 2 (Deposition Exhibit Number 3 was marked for Q. BY MR. HERNANDEZ: Do you recognize this 3 identification.) document? 4 Q. BY MR. HERNANDEZ: Mr. Syla, are these invoices, A. Yes. 5 Exhibit Number 3 -- the document here reflected as Q. Did you prepare this document? 6 Exhibit Number 3, are these invoices that were used to -- A. Yes. 7 A. Yes. Q. Did anybody assist you with preparing this 8 Q. -- compile the information here on document? 9 Exhibit Number 2? A. No. 10 A. Yes, yes. MR. STRAUGHN: I helped him. 11 Q. Any other invoices other than what's here in MR. HERNANDEZ: Okay. 12 Exhibit Number 3? MR. STRAUGHN: He gave me the information -- 13 A. No, this is it. THE WITNESS: Information. 14 Q. Okay. So the only -- MR. STRAUGHN: -- and I typed it up like 15 A. Yeah, from this to this. this. 16 Q. So the only documents that were used to fill in Q. BY MR. HERNANDEZ: Okay. Did you review any 17 the information in Exhibit Number 2 are the invoices -- documents? Did you gather the information reflected in 18 A. Yeah, from the invoices. this document by reviewing other documents? Let me strike 19 Q. -- are the invoices from Exhibit Number 3, right? that. 20 A. Yeah. What documents did you rely on, Mr. Syla, to 21 Q. Okay. And your Document Number -- compile the information reflected here in this document, 22 Exhibit Number 2, the first column, what is the first Exhibit Number 2? 23 column -- under Activity, what information is in that MR. STRAUGHN: Form. 24 first column? THE WITNESS: Forms and I know what happened 25 A. Kitchen. Page 46 Page 48 on the job myself. I know. I went. 1 Q. Generally speaking, is that a list of all of the Q. BY MR. HERNANDEZ: What forms? 2 tasks that were done on the project -- A. Well, I know what got done and what didn't get 3 A. Yeah. done. So I don't know which documents you're relating, 4 Q. -- or that were supposed to be done on the because I was involved. 5 project? Q. Did you use or rely on any documents -- 6 A. That were supposed to be done. It's marked there A. No, not as far as this. 7 Complete. MR. STRAUGHN: Form. 8 Q. Okay. So the first column is everything that was Go ahead and answer. 9 supposed to be done on the project, right? THE WITNESS: Not that I -- 10 A. Yeah. MR. STRAUGHN: Go ahead and answer. 11 Q. And the second column complete by 4-22-21? What I did -- I'll explain to you how this 12 A. Yeah. document was created, is that I took the items that were 13 Q. That column indicates what? on the invoices -- 14 A. The second column? THE WITNESS: Yeah. 15 Q. The second column. MR. STRAUGHN: -- and I made this chart 16 A. Indicates of what was completed by that date. based on those items. 17 Q. Okay. So if I understand you correctly, under And then Mr. Syla went back and told me 18 the second column, if there's an X next to the work item, which items were complete by a certain date. 19 that is the date that you're telling us that the work was THE WITNESS: Yeah. 20 completed; is that correct? Q. BY MR. HERNANDEZ: Okay. So the invoices that 21 A. Yes. counsel is referring to, Mr. Syla, do you know what he 22 MR. STRAUGHN: Form. meant when he referred to the "invoices"? 23 Q. BY MR. HERNANDEZ: And then the third column, if A. Yes, yes. 24 I'm following your testimony, if a work item has an X next Q. Okay. I will show you what we're going to mark 25 to it under the Complete by 7-26-21 date, is it your

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testimony that those items were completed by 7-26-21? 1 document -- A. Yes. 2 MR. HERNANDEZ: Hey, still, Terry, we can do Q. Now, Mr. Syla, going back to our 3 it off the record. Please, let me get an answer. Interrogatory Number 5, Exhibit Number 1, you testified a 4 THE WITNESS: This was related to this. minute ago you understood that the interrogatory was 5 Q. BY MR. HERNANDEZ: I'm sorry? requesting information regarding both the start date for 6 A. Okay. This was related to this invoice. each work item and the completion date for each work item. 7 Q. Okay. Do you remember that testimony? 8 A. So whatever was in this invoice, then we kind of A. Yeah. 9 broke it down. Q. Okay. This only has a completion date, 10 Q. Okay. Now, in Exhibit Number 3, which are the Exhibit Number 2? 11 two invoices you used to compile and put information into A. Yeah. 12 Exhibit Number 2, where does it reflect the work that was Q. So do you know when these work items were started 13 done, the plumbing work that was done for the water lines and how long it took to complete each work item? 14 connecting the washing machines to the plumbing? A. Not exactly the date; not exactly the date. 15 A. I have to look further to find that. I looked Q. Do you have any records or documents that show 16 and I have to look further to find regarding that. when each work item was started and completed? 17 Q. I'm going to show you what we are going to mark A. I couldn't find any documents regarding that. 18 as Exhibit Number 4 to your deposition. Q. Did you look before today? 19 (Deposition Exhibit Number 4 was marked for A. I looked. I looked. 20 identification.) Q. When did you look before today? 21 Q. BY MR. HERNANDEZ: Take a minute to review A. I looked a few weeks ago, like I said, for any 22 Exhibit Number 4, Mr. Syla, and let me know when you're documents regarding work. 23 done. Q. Okay. And this Exhibit Number 2, Mr. Syla, can 24 A. Okay. you tell me where it reflects the water lines in the 25 Q. Have you seen this document before today?

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laundry room and when that work was done? 1 A. Yes. A. I don't see it. 2 Q. Did you review this document to make sure that Q. I'm sorry? 3 the responses in here were true and accurate? A. Exhibit 2? 4 A. Yes. Q. In Exhibit 2. 5 Q. When did you first see the requests for documents A. I don't see it here in Exhibit 2. 6 that we served on your attorneys in this case? Q. All right. So just to confirm in Exhibit 2, 7 A. Four weeks ago, was it? Four weeks ago. Three, there's no reference to the water lines for the washing 8 four weeks. machines; is that right? 9 Q. About four weeks ago? A. No. Yeah, that's right. That's right. 10 A. Four, five weeks, something like that. Q. Your subcontractor or your employees did that 11 Q. Let me go through each of these, Mr. Syla, just work, though, right? 12 to make sure you understood what was being sought through A. Yes. 13 these discovery requests. Q. They installed the plumbing for the washing 14 If you turn to Page 4, and, if you could machines and installed the water lines connecting the 15 please review Request Number 1 at the bottom of Page 4. plumbing to the washing machines, right? 16 A. Yeah. A. Yes. 17 Q. Do you understand what that request is asking Q. But that work is not reflected in 18 for? Exhibit Number 2? 19 A. Yeah. A. No, it's not reflected. 20 Q. And what do you understand this request to be Q. And can you give me any reason or explanation for 21 asking for? why it's not reflected in Exhibit Number 2, Mr. Syla? 22 A. I'm reading this. All employees and MR. STRAUGHN: I can explain. 23 subcontractors defendant referring to related work MR. KESTENBAUM: You're not being deposed. 24 performed to Kestenbaum. MR. STRAUGHN: Since I helped create the 25 Q. Did you understand that you were supposed to look

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for and provide any and all agreements that you and N&E 1 regarding this. Even if there's nothing, I'll send it. had with any of the subcontractors? 2 But when there's nothing regarding the project, I don't A. Yes. You asked me that question before. 3 think that I'm supposed to send any information. Q. Yeah. And you've looked for -- 4 Q. If you look at Request Number 3, Mr. Syla, what A. I looked for. 5 did you understand us to be asking you to look for and Q. -- anything that would constitute an agreement 6 produce in this case? with any of the subcontractors, right? 7 A. Yeah, I understand. A. Yes. 8 Q. Okay. What did you understand Request Number 3 Q. And you didn't find any, right? 9 to ask you to give us in terms of documents? A. Well, yeah. I looked and I found whatever I 10 A. Cost reports, profit/loss statements. could. Whatever I didn't find, I didn't find. 11 Q. Any expenses that you incurred on the project, Q. But you didn't look until five weeks ago, right? 12 any money that you paid out to anyone for work on the MR. STRAUGHN: Form. 13 project, right? THE WITNESS: Five weeks ago? 14 A. Yeah. Q. BY MR. HERNANDEZ: When you said that you first 15 Q. Okay. And do you have anything that shows what received a copy of our requests for documents, you said 16 was paid out, any expenses, any materials that were about four weeks ago -- 17 purchased on the project? Do you have any of those A. Yeah. 18 documents? Q. -- right? 19 A. I don't. A. When you requested for this, I looked further. 20 Q. Why not? Q. Okay. If you look at Request Number 2 on Page 5, 21 A. Because I don't. I didn't keep track. what is your understanding of what we were asking you to 22 MR. KESTENBAUM: He can tell that to the produce -- look for and produce with respect to 23 jury. Perfect. Request Number 2? 24 THE WITNESS: Most of the material was A. Any communication with employees regarding 25 purchased by Kestenbaum.

Page 54 Page 56 Kestenbaum project. 1 Q. BY MR. HERNANDEZ: Okay. So is it your testimony Q. Okay. E-mails and text messages included, right? 2 that you didn't purchase any materials? A. Yes. 3 A. I didn't say that. Q. And that's something that you started to do -- or 4 Q. Okay. did four weeks ago for the first time? 5 A. Finished products, rough-in materials we A. Like I said, yes. 6 purchased. Q. Okay. But you hadn't looked for text messages 7 Q. Okay. with Mr. Delgado before today, right? 8 A. We call it rough-in. A. Well, that was one of them, Delgado. But I 9 Q. Okay. looked the most I could regarding the project. I looked 10 A. But I don't have those as far as separate, like, through e-mails, through employees and wherever I thought 11 you asked for material separations. that I exchanged texts, I went back. And I found whatever 12 Q. And what would you do after you left here today I could found, which I didn't find much because it was a 13 to look for copies of any invoices or expenses for any of while ago. 14 the rough-in materials that you had to purchase to do the Q. Did you know four weeks ago that you were 15 work on the Kestenbaum project? supposed to look for text messages with any of the 16 A. And what is your question? subcontractors who did work on the house? 17 Q. If you were to leave here today to look for A. I know and I did. 18 documents, invoices, receipts -- Q. Okay. So how come earlier today you testified 19 A. If I find, I'll provide. that you had not gone back to your text messages with 20 Q. Where would you look? Delgado in September of 2021 until we did it an hour ago? 21 A. E-mails or texts or e-mails that others subs -- A. Which, as you saw, I didn't find much in there. 22 if they sent me an invoice. I looked, but I didn't find I looked, but I didn't find any exchange regarding ... 23 any regarding this materials. even if there's nothing there, if you want me just to send 24 Q. So is that something that you still need to do? texts, I'll do more. I'll research more into this 25 It doesn't sound like you've done a good job of doing that

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so far. Is that something that you still need to do? 1 A. Yeah, the empty boxes are the work that is not MR. STRAUGHN: Form. 2 completed. THE WITNESS: I did look and I was able -- I 3 Q. Okay. So let's go through that, okay? found what I was able to found. 4 A. Okay. Q. BY MR. HERNANDEZ: Okay. Again, Mr. Syla, I'm 5 Q. Because I just got this on Tuesday. going to ask you to, please, after this deposition 6 A. Okay. concludes, to work with your counsel to make sure that you 7 Q. So let's go through Exhibit 2. do a thorough search for any documents that are responsive 8 A. Okay. to these requests. Do you understand that? 9 Q. The first empty row that I see is "Drywall tape A. Okay. 10 and texture to match existing." Do you see that? Q. Going back to Exhibit Number 3, Mr. Syla, is it 11 A. And where? your contention, your assertion, that you or your 12 Q. On the first page under Kitchen. subcontractors performed every single work item reflected 13 A. Yes. here on Exhibit Number 3? 14 Q. That work was not done, right? A. Exhibit Number 2 shows what we performed. 15 A. No, that work was not done. Q. Okay. My question is on Exhibit Number 3. 16 Q. And can you tell me where that line item matches A. Yeah -- 17 up with the work items on Exhibit 3? Q. These are the contracts, right? 18 A. I have to look back into this, in the kitchen A. Yeah. 19 drywall tape and texture. Q. You don't have any other contracts with 20 What was your question? Mr. Kestenbaum over the work that was done, right? 21 Q. Okay. I think I see it. The first page, A. No. 22 Exhibit 3, under Kitchen, "Drywall tape and texture to MR. STRAUGHN: Form. 23 match existing." Q. BY MR. HERNANDEZ: This is it? 24 A. Yeah, yeah, yeah. A. This is it. And I have to look further, like I 25 Q. And at least on this first page of Exhibit 3, you

Page 58 Page 60 said, regarding the laundry. 1 have an estimate for all of that work of $8,600, right? Q. Regarding the? 2 A. Yeah. A. Laundry. 3 Q. And what would the value of the drywall tape and Q. Okay. Aside from the -- 4 texture to match existing be of that $8,600 in the A. Yes. 5 contract? Q. -- laundry, is it your contention that you 6 A. I will need -- I mean, for the kitchen, I would performed all of the work reflected in these two 7 say $1,000 a part. documents, in these two invoices? 8 Q. Okay. Now if you go to Page 2 of MR. STRAUGHN: Form, foundation. 9 Exhibit Number 2. THE WITNESS: Performed all of the work? 10 A. Okay. Q. BY MR. HERNANDEZ: If you look -- 11 Q. At the very top of the page, Exhibit 2. A. The question that you're asking I don't 12 A. Oh, Exhibit 2, okay. understand, because you're saying "performed all of the 13 Q. The top of the page you have seven work items work." This shows the work was not done. So we didn't 14 there that don't have a box checked next to them, right? perform all of the work. 15 A. Yeah. Q. Okay. So it's going to take a little time, but 16 Q. Okay. And I'm going to go compare that with it's important that we do it before we leave here today. 17 Exhibit Number 3 under the master bathroom. Under I need you to identify -- and you can do 18 Exhibit 3, first page, under the main heading Master this on your own, and we can go off the record to give you 19 Bathroom, you also have "supply and install green drywall the time to do it. I want you to identify for me each 20 around tub." Do you see that? work item in Exhibit 3 that you and your subcontractors 21 A. Yeah. did not complete. Do you understand my question? 22 Q. What's the value of that work, of that work item? A. I understand, but ... 23 MR. STRAUGHN: Form, foundation. Q. Exhibit 2 is work that you did and completed, 24 THE WITNESS: I'll need more time to go over right? 25 on each of these to separate all of this what would be the

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value. 1 A. Of course. Q. BY MR. HERNANDEZ: What's your estimate -- 2 Q. Okay. Was that something that your employees or A. Ballpark. 3 your subcontractors were responsible for? Q. -- of what that would be? 4 A. Of course. A. 20, $25 per square foot, so that's the thing that 5 Q. Did they do it? I need more research on that. 6 A. Yes, they did. Q. Okay. 7 Q. How do you know that? A. If we have to break it down -- break it down and 8 A. I have proof of that. send it to you, but I'll need more time on that. 9 Q. What proof do you have that they did the -- Q. Okay. Same question for the second work item on 10 A. Pictures. Exhibit 2. "Tape and texture as needed," in the master 11 Q. -- the shower pan? bathroom. 12 A. Pictures. What's your estimate of the value for that 13 Q. Do you have pictures? work? 14 A. Yes. A. Most likely same as in the kitchen, but 700 to 15 Q. Do you have them on your phone? Have they been $1,000. 16 produced to your attorney? Q. "Waterproof entire shower." 17 MR. KESTENBAUM: Can we take five? What does that mean? 18 MR. HERNANDEZ: In a minute. A. Waterproofing. 19 THE WITNESS: Yes, I did provide it to the Q. What does it mean? What does it entail? 20 attorney. A. Waterproofing with the -- waterproofing the 21 Q. BY MR. HERNANDEZ: The pictures of the work that drywall before you install the tiles, putting a coat of 22 was done in the shower of the shower pan, is that what RedGard or seal. 23 you're saying? Q. And what's the value of that work, ballpark? 24 A. I have to look back. I told you I'm not sure if A. 500, probably. 25 I provided to him, but I have pictures of the -- I have

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Q. Okay. Installing a barn door? 1 pictures. I remember that. I recall it in my head. A. 500. 2 Q. Of the shower? Q. Installing plumbing fixtures? 3 A. Of the shower pan. A. 1,500. 4 Q. And the shower pan? Q. Supplying and installing the frameless glass 5 A. The shower pan, yes. shower door? 6 Q. Do you have any other pictures on your phone A. 2,500. 7 without the -- Q. Installing swing or barn door on the toilet? 8 A. Because Kestenbaum e-mailed that there was no A. 250. 9 shower pan back then. And then at that moment, I asked Q. 250? 10 the employee about that and he provided it. A. Uh-huh, yes. 11 Q. Okay. Which employee? Q. Stain on the master bath in the shower. 12 A. Isaac. Mr. Syla, would you agree with me that your 13 Q. Okay. So are there other pictures you have on employees or your subcontractors did the remodel for the 14 your phone about the work that your employees or shower? 15 subcontractors did on the Kestenbaum home? A. What is your question again? 16 A. No, that's why I looked. That's why I said if I Q. Did your employees or subcontractors do the 17 have, I would have send it. I would have provided, but I remodel on the shower? 18 don't have more pictures. A. Yeah, but it wasn't finished. 19 Q. So you only have pictures of the shower pan, but Q. It was not finished? 20 you don't have any other pictures of the work that was A. Yeah. 21 done on the project? Q. What was left to be done? 22 A. I have to go look through my phone, if I have it. A. The cement, the green drywall, the waterproofing 23 But I looked and I couldn't find much about it. It's been and the tiles and rest of it, how it goes, the process. 24 a while. Q. Okay. Do you know what a shower pan is? 25 Q. When did you look?

ANITA LANDEROS REPORTING, INC. Page 17 (Pages 65-68) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 65 Page 67 A. Like I said, when you -- 1 In these documents, Mr. Syla, we have Q. Four weeks ago? 2 something called a Bates Numbers that attorneys use to A. Five weeks ago when this request came to look 3 refer to numbers at the bottom of each page. whatever I find regarding the project. 4 A. 004. Q. Okay. And, at that time, you looked for 5 Q. So you're referring to 004 in Exhibit 3? pictures -- all pictures that you had of work that was 6 A. Uh-huh, yes. done by your employees or subcontractors on the project? 7 Q. And on that page, there's a reference to A. Yes, yeah. But as far as shower pan, I had it. 8 installing tiles on the floor, right? Q. That's the only one that you were able to find? 9 A. Floor, behind tub and entire steam shower. A. Yes. And like I said, I had it from that time 10 Q. Okay. And that was work that was not done, that he e-mailed me there was no shower pan, which wasn't 11 right? true. 12 A. Correct. Q. Okay. Again, we will take a quick break here. 13 Q. And what is the ballpark value of that work? But, again, Mr. Syla, I'm going to advise 14 A. Ballpark 5 to 7,000. you to work with your counsel. If you have pictures about 15 Q. And on both Exhibit 3 and Exhibit 2, you have any of the work that your employees or subcontractors did 16 "Grout it" as a separate work item? on the project, they should have been produced quite a 17 A. Yeah. while ago. You need to do that right away. 18 Q. So what would be the ballpark value of the grout Let's take a five-minute break, please. 19 work item? (A recess was taken.) 20 A. 700. Q. BY MR. HERNANDEZ: All right. Okay. Mr. Syla, 21 Q. Okay. Moving on to the last page of Exhibit 2, we are back on the record. 22 we've already gone over "Grout it." We're going to continue with our line of 23 The next work item on this list is questioning and going over Exhibits 2 and comparing with 24 "Additional cost for steam shower glass door." line items in Exhibit 3. And if you want to start with 25 A. Uh-huh.

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Exhibit 2 on the third page, there are three work items 1 Q. What was the ballpark value of that work? there that also do not have any X's showing that the work 2 A. I would say between 500 to 1,000. was completed. Do you see that? 3 Q. Okay. And then the last thing here, Mr. Syla, is A. Uh-huh, yes. 4 "Install new tile behind vanity as per design Q. And this is a continuation -- this is more master 5 specifications." bathroom work at the top, on the third page, the top of 6 And what's the ballpark value of that? the third page? 7 A. 1,500. 1,000. 1,500. A. Yes. 8 Q. Just eyeballing here, Mr. Syla, it looks like, Q. One work item says "Grout it." 9 based on your testimony -- and I understand ballpark A. Yeah. 10 estimates -- that you did not do about $15,000 worth of Q. Can you show me where that is reflected in 11 work that was in the initial contract documents. Is that Exhibit 3? 12 right? A. Well, on the page before it, install tiles -- 13 A. Yeah, correct. Somewhere around there. that means grout the tiles on the bottom. 14 Q. Ballpark again? Q. "Installing tiles on the floor, behind the tub 15 A. Ballpark, yes. and entire steam shower" ... 16 Q. I'm going to show you what we're going to mark as Oh, I missed that one. 17 Exhibit Number 5. A. Yeah. 18 (Deposition Exhibit Number 5 was marked for Q. So for that work item, at the bottom of the 19 identification.) second page of Exhibit 2, is that reflected as a work item 20 Q. BY MR. HERNANDEZ: Take a minute to review what in Exhibit 3 somewhere? 21 has been marked as Exhibit 5, and let me know when you're A. Yes. 22 ready, Mr. Syla. Q. And where is that? 23 A. Yes. A. Yeah, master bathroom additional work. 24 Q. Are you ready? Q. I see. 25 A. Yeah.

ANITA LANDEROS REPORTING, INC. Page 18 (Pages 69-72) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 69 Page 71 Q. Do you remember sending this e-mail? 1 employees or subcontractors had done by October 4th? A. I remember now, yes. 2 MR. STRAUGHN: Form. Q. And give me some context, Mr. Syla. What was 3 THE WITNESS: No, not as far -- I was there occurring on the project that preceded you sending this 4 whenever -- whenever he requested. I did my best to e-mail to Mr. Kestenbaum? What was happening on the 5 finish it, because there were a lot of other people project? Why did you send this e-mail? 6 involved in the project. A. Why did I send this e-mail? 7 Q. BY MR. HERNANDEZ: "A lot of other people" Q. Yes. 8 meaning who? A. For the work that I've done and what we've talked 9 A. That Kestenbaum had dealt with. about. 10 Q. Do you recall having a meeting with Q. Exhibit Number 5, the first page is an e-mail, 11 Mr. Kestenbaum and the other individuals who were right? 12 involved? A. Yeah. 13 A. Not with other individuals. Q. Were there already problems on the project by the 14 Q. Okay. Did you have a meeting with Mr. Kestenbaum time you sent this e-mail, Mr. Syla? 15 before October 4th about the concerns he had with the MR. STRAUGHN: Form. 16 project? THE WITNESS: Problems, there were, 17 A. Yeah, we had a meeting and he was anxious to regarding the material. And just in the middle of my 18 finish it fast, and we came to an agreement. I told him project, there was involvement, designs and stuff, so it 19 that I'll do the best. I make it priority, like I did, to was the material was the problem as well. And that's why 20 finish it on his timeline. I knew that the project had to move forward fast, so I 21 Q. Okay. gave him a deadline. He wanted a deadline. He wanted to 22 A. And I did my best as I could, and that's why I finish it quick. 23 gave him this. And I said: If I don't finish the way that 24 Q. The meeting that you had with Mr. Kestenbaum, was you want it, you can charge me this much, so we came to an 25 that an in-person meeting at the home?

Page 70 Page 72 agreement. 1 A. Yes. Q. BY MR. HERNANDEZ: By October 4th, you knew that 2 Q. Were there other people present? there were concerns from the homeowners about the work 3 A. Yes, it was his wife and cousin. that was being done on the project, right? 4 Q. Everybody was in the meeting, right? A. Yeah. He talked to me about it and I tried to do 5 A. Wife and cousin, yes. His wife and cousin. the best to finish it on his timeline. 6 Q. So aside from you and Mr. Kestenbaum, how many Q. So, again, the question is: By October 4th of 7 other people do you recall being in the meeting? 2021, Mr. Kestenbaum had already communicated with you 8 A. A total of four of us. about concerns regarding the project, right? 9 Q. Okay. And were there any specific concerns that A. Concerns in his opinion that it's going slow. 10 were brought up at that meeting about the work that had Q. Okay. One was going slow because -- what was 11 been done up to that point? your understanding -- what is your understanding of why 12 A. Not concerns about what has been done. Concerns Mr. Kestenbaum believed it was going slow? 13 to finish it faster. He wanted to finish it, to be done MR. STRAUGHN: Form. 14 with it, as quick as possible. THE WITNESS: Like I said, it was 15 Q. Do you recall there being an issue with the hole combination of materials and decision to go per design 16 that someone from D&M Electric drilled into a pipe through specification. We were waiting on a lot of stuff like he 17 the floor? knows. 18 A. That's what he claims. Q. BY MR. HERNANDEZ: When was the project supposed 19 Q. Do you deny that that happened? to be completed? 20 A. Well, I deny it because I wasn't there to see it A. We didn't have a date, because a lot of things 21 and it wasn't proof that they did it. changed and were added after. And I tried to help him as 22 Q. Did you talk -- much as I can with other items that I wasn't involved, as 23 A. And I fixed it. far as I didn't charge him for it. 24 Q. Do you know who did that work? Q. Were there concerns with the work that your 25 A. Who did which work?

ANITA LANDEROS REPORTING, INC. Page 19 (Pages 73-76) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 73 Page 75 MR. STRAUGHN: Form. 1 A. Work completed items. Q. BY MR. HERNANDEZ: Who did the work for D&M? 2 Q. And let me maybe re-ask the question. A. I don't know. 3 What software or app is used to generate Q. Was it Manny? 4 this document? A. It was Manny. It was his company. But regarding 5 A. On my MacBook. what he pointed, it had nothing to do with the leak and he 6 Q. On your MacBook? insisted that this was them. 7 A. Yeah. Q. Okay. Did you talk to Manny? 8 Q. Is there an app that you use? A. I talked to Manny. And he -- how do I say it? 9 A. No, not app, just pages. He said he didn't do it. He said that it 10 Q. So this is just a Word document or spreadsheet? wasn't them. It was no way that it was them. 11 A. Yeah, spreadsheet. Q. When did you talk to Manny about that? 12 Q. I saw something. I don't know if it was on this A. When the problem occurred. 13 document; maybe it was on something else called Joist? Q. So when the -- 14 A. Yeah. A. I brought them. They saw it. And they said that 15 Q. Is Joist an app? it wasn't them. It was no chance. And Kestenbaum 16 A. Yes. insisted that it was them. And I took care of it no 17 Q. And how do you use Joist and for what purpose? matter what. 18 A. For invoices for proposals. Q. And how did you take care of it, Mr. Syla? 19 Q. Tell me again, Mr. Syla, how do you use Joist? A. How did I take care of it? 20 A. How do I use Joist? Q. You said that you took care of it. I'm asking 21 Q. Yes. It's an app that you use, right? you how you took care of it? 22 A. Yes. A. I believe I did the drywall work, the drywall 23 Q. And what is the purpose of you using that app? work in there. I'm not sure if it was him that he hired 24 A. To make proposals and invoices. someone else, because he didn't want the electricians 25 Q. For the customers that you're doing construction

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back. 1 or remodeling work for, right? I don't recall it back if it was me -- I 2 A. Yeah, yeah, yeah. know for sure I told Ken that I would take care of it. 3 Q. Is it something that you can share with employees And I don't recall if he hired his own people or I did it. 4 or subcontractors? Q. When you took care of it, did you reimburse 5 A. I can share? Mr. Kestenbaum for the additional expense he incurred from 6 MR. STRAUGHN: Form. the hole in the pipe? 7 Q. BY MR. HERNANDEZ: Yes. A. Not on paper, no. Not -- I didn't give him a 8 A. I can share whatever you want. credit. 9 Q. Do you use Joist to share information about the Q. Okay. 10 work you want your employees or subcontractors to do? A. Planning. 11 A. Not usually, no. Q. I'm sorry? 12 Q. Do you have any sort of an app or software that A. I was planning it, but ... 13 you use as a task manager when you're assigning work to Q. But you never did? 14 your employees or subcontractors? A. No. 15 A. No, we go over the job site. Q. Now the second and third pages of Exhibit 5, can 16 Q. Turning again to Exhibit 5, Page 2, this is a you describe for me what this is that we're looking at? 17 Word document that you prepared on your computer? If you look at the bottom, Pages 2 and 3. 18 A. Uh-huh, yes. A. Pages -- on this one? 19 Q. Do you have any other documents like what's Q. Yes, ADVN&E2 -- 20 reflected here in 2 or 3? Do you have any other documents A. Yeah. 21 that include the same information, same type of Q. -- and 3. 22 information for work that was done on the Kestenbaum A. Yeah. 23 project? Q. Can you describe what that is that we're looking 24 A. After I have to go back and look into it more. at? 25 Q. Is it the same laptop --

ANITA LANDEROS REPORTING, INC. Page 20 (Pages 77-80) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 77 Page 79

A. Yes, same computer. 1 What is this document? What do you Q. -- that you had since September -- 2 understand this document to be, Mr. Syla? A. Yeah. 3 A. This for lien for the amount of money I thought Q. -- August, October of 2021? 4 he owes me. A. Yeah, same computer. 5 Q. So this is a lien, right? Q. Same computer? 6 A. No. A. I have to do more research and we'll let you know 7 MR. STRAUGHN: Form, foundation. regarding that. I believe there might be more. 8 THE WITNESS: It's not a lien. Q. Okay. On Page 2 here, Mr. Syla, the third entry 9 Q. BY MR. HERNANDEZ: What is this document to you? down, has "Water line and P-trap for new washer." 10 A. Pre-lien. Do you see that? 11 Q. A pre-lien, okay. I'm just making sure -- A. Yeah. 12 A. Yeah. Q. Was that a reference to the plumbing and the 13 Q. -- that we're avoiding making unnecessary water line that your employees or subcontractors did to 14 objections here. connect the washing machines to the plumbing? 15 A. A pre-lien. A. It's regarding that scope of work, water line and 16 Q. It's a pre-lien -- P-trap, yeah. It's regarding that area of work in the 17 A. Yeah. laundry, yeah. 18 Q. -- that you issued, right? Q. And that was done by your employees or 19 A. Not particularly, me, but, yeah. subcontractors? 20 Q. You authorized somebody to issue this pre-lien A. Yeah, yeah. 21 document? Q. And what is the P-trap? 22 A. Yes. A. P-trap? 23 Q. And one of the pre-lien documents that you issued Q. Yeah. 24 is in the amount of $32,900, right? A. P-trap is a drain that you connect the drain to 25 A. Yes.

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it. It doesn't let you clog or mess. That's a P-trap. 1 Q. And a second one you issued or authorized Q. Okay. So is it fair to say that N&E, your 2 somebody to issue a pre-lien for $6,789, right? employees and subcontractors, were responsible for 3 A. Yes, yes. installing the plumbing to drain water from the washing 4 Q. Okay. How did you come up with the $6,789? machines? 5 A. I believe there's another estimate regarding A. Yes. 6 that. I have to look further. Q. I'm going to show you what we're going to mark as 7 Q. Okay. How did you come up with the $32,900? Exhibit 6. 8 A. From the Exhibition (sic) 2. (Deposition Exhibit Number 6 was marked for 9 Q. Exhibits 2 and 3, or just 2? identification.) 10 A. Whichever was from my invoice, the first invoice. Q. BY MR. HERNANDEZ: Do you recognize these 11 Q. So that would be Exhibit 3? documents, Mr. Syla? 12 A. Yes. A. Yes. 13 Q. So let's look at Exhibit 3. Q. And one is a lien that you issued for $32,900? 14 So in Exhibit 3, using Exhibit 3, how did A. Uh-huh. 15 you get to $32,900? MR. STRAUGHN: Form and foundation. 16 A. The last amount. THE WITNESS: Yes, I did. 17 Q. I'm sorry? MR. STRAUGHN: Look at this. 18 A. From the amount 32,900 on the end. Q. BY MR. HERNANDEZ: You can answer. 19 Q. Okay. So you're pointing to the last page in A. No, this is not -- no, this is not a lien. 20 Exhibit 3, right? Q. It's a notice lien, right? 21 A. Yes. A. Notice lien, yeah. 22 Q. And that's where you get the $32,900 -- Q. And you issued a notice lien -- 23 A. Yes. MR. STRAUGHN: Form, foundation. 24 Q. -- for the pre-lien that you issued? Q. BY MR. HERNANDEZ: -- for $32,900, right? 25 A. Yes, yes.

ANITA LANDEROS REPORTING, INC. Page 21 (Pages 81-84) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 81 Page 83

Q. Mr. Syla, why did you issue a lien for $32,900 1 Q. BY MR. HERNANDEZ: Okay. So you discussed with when you knew that you hadn't done all of the work in the 2 him where the showerhead was going to go? contract? 3 A. Yeah, showerhead was going to go. MR. STRAUGHN: Form, foundation. 4 Q. Did you discuss with him where the steam head was THE WITNESS: That was not what he owed me. 5 going to go? I understood that. But I send a pre-lien that if I finish 6 A. The steam, the kit behind in the closet. the work -- usually when they send it, somebody gets into 7 Q. And the ThermaSol panel, did you have any your work and gets somebody else to get it done, you owe 8 discussions with Alberto about where the ThermaSol panel me the rest of the money. Because I wanted to finish the 9 was going to be installed? work, but he didn't allow me. 10 A. I don't recall it very well, as far as that. To Q. BY MR. HERNANDEZ: You knew at that time when you 11 tell you the truth, the exact words, I don't -- authorized -- or issued the pre-liens that you weren't 12 Q. Do you know what I mean when I say the ThermaSol owed $32,900; is that fair? 13 panel? A. Yes, that's fair. Of course. I'm telling the 14 A. The ThermaSol panel that you can -- truth. 15 Q. It's an electronic digital -- MR. KESTENBAUM: That part's now done. 16 A. -- yeah, yeah. Q. BY MR. HERNANDEZ: Okay. Mr. Syla, let's move on 17 Q. -- temperature control panel -- here. The work that you did in the shower, you testified 18 A. Yeah. earlier there was an issue with the shower pan that your 19 Q. -- right? employees -- Mr. Kestenbaum believes that you didn't do, 20 A. Yeah. but you have proof that your employees did, right? 21 Q. You don't recall having conversation with Alberto A. Yes. 22 about the ThermaSol panel; is that right? Q. Okay. Your employees or subcontractors were also 23 A. I do recall having conversation what the owner responsible for installing ThermaSol panel; is that right? 24 wanted and where we would put it, the best place. A. Yes, as far as steam shower, yes. 25 Q. Okay. Did you talk with Manny or anyone else

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Q. And -- 1 from DM Electric (sic) about where the ThermaSol panel was A. ThermaSol. 2 going to go? Q. And were you involved -- did you perform any work 3 A. I believe so, yes. to install the ThermaSol panel? 4 Q. Okay. During those conversations with Manny and A. No, the electricians did. 5 whoever else from DM Electric that did work on the shower, Q. And how about the plumbing in the shower? 6 did you guys take the time to look at the manufacturer's A. Yes, we did the plumbing. 7 specifications for installation of the panel? Q. And who did the plumbing? 8 A. I believe we did. As far as him, he did -- A. Alberto. 9 Q. Is it your -- Q. Alberto did all of the plumbing for the shower? 10 A. -- to do. A. Yes. 11 Q. -- understanding and belief today that you Q. Did all of the plumbing for the steam shower? 12 installed the ThermaSol panel in compliance with the A. Mostly, yeah. For the steam kit, yes. 13 manufacturer's specifications? Q. Who else other than Alberto? 14 A. I believe so. A. Nobody. 15 Q. Is it your testimony and belief, as you sit here Q. Did you at any point in time talk to Alberto 16 today, Mr. Syla, that the installation of the shower -- about the work that needed to be done for the installation 17 the steam head complied with the manufacturer's of the steam shower? 18 specifications? A. We went over, yeah. We went over. 19 A. Yes. Q. Okay. What conversation did you have with 20 Q. Do you recall there being an issue -- do you know Alberto about the work for the steam shower? 21 what a tub fill is, Mr. Syla? MR. STRAUGHN: Form. 22 A. Yes. THE WITNESS: General conversations where 23 Q. What is a tub fill? the showerhead going. General things, normal things about 24 A. Tub fill. the project. 25 Q. What is it? Describe it for me. I just want --

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again, some of this may sound elementary or naive. 1 saw the paper and the tape that was used to cover the wood A. Tub fill is a faucet. Faucet for the tub. 2 floor? Q. Okay. And did your employees or subcontractors 3 A. Yes. But it didn't concern me because I didn't do the work to install the tub fill? 4 see anything damaged at that point. A. No, we didn't do that. That's unfinished. 5 Q. Did you see the tape -- did you recognize the Q. One of the other issues in the case, Mr. Syla, 6 tape that was used to cover the floor? pertains to some tape that was used on wood floors 7 A. I did. And it's not the first rodeo. adjacent to the laundry room. Do you recall that being an 8 Q. Okay. So what tape was used to cover the floor? issue in this case? 9 A. Usually it's orange tape or blue tape. A. No. 10 Q. Okay. And did they use blue tape or orange tape Q. So, as you sit here today, you're not aware of an 11 to cover the floor in the master bedroom? issue in this case being damaged wood floors? 12 A. I don't remember it. I don't remember in my head A. Damaged wood floors? 13 which tape they used at that time. If I have pictures, Q. Yeah. 14 that would help. A. Where? 15 Q. But you agree with me they should have used blue Q. In the master bedroom next to the laundry room. 16 tape or orange tape? A. No, I don't recall that. I don't remember that 17 A. Blue tape or orange tape or there is green as far as the damaged wood floor. 18 FrogTape, which is more expensive. Q. Okay. 19 Q. It's not a great copy here. There's a little A. I don't remember anything about that, damaged 20 blurring on it, but you can see it still. This is wood floor. 21 Exhibit Number 7. Q. Do you recall that there is a bedroom -- a master 22 (Deposition Exhibit Number 7 was marked for bedroom next to the laundry room? 23 identification by the reporter.) A. Next to the bathroom. 24 Q. BY MR. HERNANDEZ: Do you see the tape? Q. The bedroom next to the master bath? 25 A. Yes. It says "duck tape."

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A. Yes. 1 Q. Okay. And do you see the picture of the tape, MR. KESTENBAUM: Next to the master bath. 2 Mr. Syla? Q. BY MR. HERNANDEZ: Okay. And everything was 3 A. Yes, I see the picture, the tape. taken out of the master bedroom, right? 4 Q. And that's not blue tape or orange tape or green A. Yeah. 5 tape, is it? Q. And your employees or subcontractors covered the 6 A. No, it's not. floor in the master bedroom? 7 Q. It's duct tape; isn't it? A. Yes. 8 A. It is duct tape. And I assume my employees Q. You don't deny that? 9 wouldn't use duct tape. A. I don't deny that. We usually cover it. 10 Q. Okay. Q. Okay. Did you see the tape that -- do you know 11 A. Kestenbaum never showed it to me like this. If which employee or subcontractor covered the floor in the 12 this what they used, but I would never use this duct tape. master bedroom? 13 Q. Should not have been used? A. I don't recall which employee. 14 A. No, should not have been used. Q. Who would it be? 15 Q. Should not have been used. A. Mostly Cain or Nuredin. Cain or Nuredin. 16 A. But it's not my employees that used it. Q. And you saw the master bedroom floor covered -- 17 MR. KESTENBAUM: More negligence. A. Yes. 18 Q. BY MR. HERNANDEZ: One of the other issues in the Q. -- right? 19 case, Mr. Syla, is a kitchen vent that your employees or A. When I was at the job site, yeah, I saw it 20 subcontractors installed to connect the range hood; do you covered. 21 recall that? Q. You saw it covered with paper and you saw the 22 A. To connect the range, yes, I recall that. tape that they used? 23 Q. Your employees or subcontractors installed the A. Yes. 24 vent, right? Q. Did that cause you any concern at all when you 25 A. Yes.

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Q. And do you recall that being an issue on the 1 apples here. project? 2 A. Okay. A. I don't recall that being an issue. 3 (Deposition Exhibit Number 8 was marked for Q. Okay. So before today, were you aware of a claim 4 identification.) alleging that your employees or subcontractors installed 5 Q. BY MR. HERNANDEZ: Let me just find the right the wrong size vent? 6 page, Mr. Syla, because there's a couple. You have A. I wasn't aware of that claiming. 7 different pictures in here that I can show you. Q. You weren't aware of that claim before today? 8 Again, I will refer you to the bottom A. For the vent, no, I don't recall that. 9 right-hand corner. You're looking for ADVN&E 97 and 98. MR. KESTENBAUM: Now you're aware. 10 A. 97 and 98, yes. Q. BY MR. HERNANDEZ: Mr. Syla, if you can go back 11 Q. Okay. to Exhibits 2 and 3. And on both documents, Exhibits 2 12 A. Okay. and 3 -- I don't care which one you do first -- point out 13 Q. So these are two pictures of the range hood and to me where it reflects the work that was supposed to be 14 the duct that your employees or subcontractors installed, done on the vent for the kitchen. 15 right? A. Okay. What was your question? 16 A. The vent here, no. Just the pipe on top. Q. So let's go document by document. 17 Q. Right. In Exhibit 2, where does it reflect the work 18 A. We left it because it wasn't sure yet what type that was done on the kitchen vent, Exhibit 2? 19 of vent. A. It doesn't reflect here. It says vent. Exhaust 20 Q. But your employees installed the pipe? fan and relocate vent of the pantry. 21 A. The pipe, yes -- Q. And where do you see that? 22 Q. Okay. A. Additional work in the kitchen, Exhibit 2. 23 A. -- as I recall it. Q. Okay. "Relocate vent after pantry demo"? 24 Q. And, again, because it doesn't reflect -- the A. Yeah. 25 picture is not being transcribed on Page 97. You're

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Q. Okay. And now if you could do the same in 1 referring to the tube coming down from the ceiling over Exhibit 3 and tell me where the vent work is -- 2 the range hood, right? A. Located. 3 A. Yeah, that was temporary tube. Q. -- listed? 4 Q. It was a temporary tube? A. Additional work, kitchen. 5 A. Yeah, temporary tube, because we didn't know what Q. "Relocate vent after pantry demo," right? 6 vent. We didn't have it there. He didn't have it at the A. Uh-huh, yes. 7 time. Q. Do you have any other documentation, Mr. Syla, 8 Q. Okay. But you installed the temporary tube? about the size of the hood that was being installed, or 9 A. Yeah, we left it hanging like that. the size of the vent that should have been installed to 10 Q. And did you cut the hole in the ceiling to fit connect the hood? 11 the temporary tube? A. We never installed the exhaust fan. 12 A. Yeah, we cut the hole. Q. You didn't install the exhaust fan? 13 Q. And you cut the hole in the roof to fit the A. The vent, the hood vent. 14 temporary tube? Q. Okay. 15 A. On the roof, yeah. I believe so on the roof, A. We never installed it. 16 too. Q. So how did you know what size of vent to install? 17 Q. So you cut a hole in the ceiling. You cut a hole A. I was waiting for them to give me the specifics 18 in the roof without knowing exactly which range hood was on the vent. They kept ordering one after another, so 19 going to be installed; is that right? that job wasn't completed yet. 20 A. Like I said, it was going back and forth which Q. But you installed the vent, right? 21 type of vent he was using, so I used the standard one. A. That was just rough-in duct, not the vent. 22 And this is -- this looks more like a Q. Okay. But so -- 23 commercial type of vent, so it needs a specific to A. It says -- 24 make ... Q. Let me show you a picture. We can talk apples to 25 Q. Do you have any documentation, an e-mail or a

ANITA LANDEROS REPORTING, INC. Page 24 (Pages 93-96) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 93 Page 95 text message from Mr. Kestenbaum or his wife or anybody 1 A. Yes. else that says: Yes, install a six-inch vent and cut a 2 Q. What is a laundry box? hole in the ceiling and cut a hole in the roof for a 3 A. Laundry box is where the overflow and the six-inch vent? Do you have any documentation that shows 4 water -- the water for the washer and dryer comes -- somebody said it's okay to do that? 5 Q. Okay. A. No, I don't. 6 A. -- to the laundry box. Q. With respect to the laundry room and the water 7 Q. And is that standard? lines, Mr. Syla, do you recall Mr. Kestenbaum's wife, 8 A. Yeah, for laundry, yeah. Jewel, bringing to your attention an issue with the water 9 Q. Did you see a laundry box installed when you lines connected to the washing machines before the flood? 10 inspected the laundry room before the flood? A. Before the flood was leaked, she texted me, yes. 11 A. I don't recall that. Q. And what do you recall about those communications 12 Q. Is that -- with Jewel Kestenbaum about the water lines connected to 13 A. Those were stackable European something washer the washing machines? 14 and dryers. I don't recall it very well. A. She said that, as I recall, that her A/C plumber 15 Q. Is a laundry box something that should have been said that it wasn't done something right. And I told her 16 done? that we will look further into it and try to fix it or try 17 A. Depends. to look at what is wrong, but I never got the chance. 18 Q. On what? Well, the first leak, I fixed it. I don't 19 A. Depends on the requirements of the washer and recall if it was just a dripping leak. I fixed it from 20 dryer. But usually, yes. Depends. the pipe. 21 Q. Okay. Did you talk with Alberto about installing But then when they claim it was a flood, 22 a laundry box in the laundry room? they never gave me a chance to look at my problem, so I 23 A. I don't remember that. I don't recall that as don't know what happened there. I don't know how come it 24 far as laundry box. didn't happen, but it happened all of a sudden. 25 Q. Do you have any reason or explanation for why a

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Q. So if I'm understanding you correctly, you did 1 laundry box was not installed? touch the plumbing in the laundry room, right? 2 A. I have no explanation regarding that, why it A. Yeah. 3 wasn't installed or why it was. Q. You worked on it? 4 Q. You have identified West Harrington as an expert A. Yeah. 5 in the case. Did you know that? Q. You made an attempt to fix a leak; is that right? 6 A. Excuse me? A. Yes, I believe. Yes, they fixed it. She showed 7 Q. Do you know who West Harrington is? me a leak or -- I don't recall if she showed me a leak or 8 MR. STRAUGHN: That's that expert that we if it was -- it's not flooding water. I think the valve 9 hired. was turned off only. I don't recall it very well to tell 10 THE WITNESS: Okay. you the truth. It was long time ago. I have to go back. 11 Q. BY MR. HERNANDEZ: Do you know who West I get many texts a day, so ... 12 Harrington is? Q. So do you recall checking the plumbing connecting 13 A. No. to the washing machine before the flood? 14 Q. You still don't, okay. A. I don't recall that to the washing machine. As 15 You have never worked with Mr. Harrington far as the washing machine, no, I don't recall that. 16 before him being designated as an expert on your behalf in Q. You don't recall inspecting it before the flood; 17 this case; is that right? is that right? 18 A. Yes. A. Inspecting it? 19 Q. Just a few more questions here, Mr. Syla. Q. Did you look at it before the flood? 20 The 30,000 that Mr. Kestenbaum paid you -- A. Yeah, we looked at it. Everything was fine 21 do you deny that he paid you $30,000? before the flood. 22 A. I don't deny. He paid me. Q. Okay. 23 Q. Okay. A. We were there. Everything was fine. 24 A. Yeah. Q. All right. Do you know what a laundry box is? 25 Q. How did he pay you?

ANITA LANDEROS REPORTING, INC. Page 25 (Pages 97-100) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 97 Page 99

A. Two checks. 1 Q. Do you know that when you have a corporation Q. Okay. And is that $30,000 that he paid you 2 registered in the State of Arizona, that you have to reflected in your tax returns and/or in N&E's profit and 3 designate a statutory agent? You did not know that? loss statements? 4 A. A corporation, not an LLC. MR. STRAUGHN: Form, foundation. 5 Q. An LLC. THE WITNESS: It goes to my business 6 A. Yes. account. It goes to my business account. 7 Q. When you have an LLC registered in the State of Q. BY MR. HERNANDEZ: So you can provide a record of 8 Arizona, did you understand that you're supposed to those checks being deposited into your business accounts? 9 designate a statutory agent? A. I can look for them. 10 A. No comment on that. Q. Okay. And you can also check your bank 11 Q. No comment, okay. statements to identify and produce for us all of the 12 MR. KESTENBAUM: Date and place. checks that were paid to the subcontractors or employees 13 Q. BY MR. HERNANDEZ: Mr. Syla, I notice that you're for work that was done on the project? 14 wearing a pretty expensive watch. A. I have to look for them. 15 A. Yeah. Q. That's something that you can do, right? 16 Q. Is it a real watch, authentic? A. I can try to find it. If I can, yeah. 17 A. Of course, it's a real watch. Q. But you haven't done it? You haven't tried to do 18 Q. And when did you purchase that watch? it before today? 19 A. I purchased a few years ago. What does that have A. No, I haven't tried. As far as the check -- all 20 to do ... of the checks, are you asking for bank statements and 21 MR. HERNANDEZ: Let's go off the record. checks? 22 I'm pretty sure I'm wrapped up with my questions. But let Q. And you understand that you have an obligation to 23 me go over my notes and we'll come back in ten minutes to provide documents relevant to the work that was done on 24 confirm. the Kestenbaum home, right? 25 THE WITNESS: Go ahead.

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A. Yes, as much documents as I could found. 1 (A recess was taken.) Q. But you haven't looked before today for any of 2 MR. HERNANDEZ: And, on the record, I don't the checks that you paid the subcontractors, right? 3 have further questions today. I am reserving the right to A. As far as checks, no, I couldn't find. I was 4 call Mr. Syla back into a deposition given that it does not. 5 not appear there was a thorough search for documents, nor Q. Did you look or did you not look for the checks 6 was there a thorough production of documents before his that you paid the subcontractors? 7 deposition. So, therefore, we're reserving the right to A. For the checks, no, no. I'll be honest with you. 8 call you back for another deposition. So I have no MR. KESTENBAUM: Beautiful. 9 further questions for today. THE WITNESS: Whatever. 10 MR. MOULTON: I have just a few questions. MR. KESTENBAUM: It will be a jury. 11 MR. STRAUGHN: Isaac, will you please -- 12 EXAMINATION MR. HERNANDEZ: Yes. 13 BY MR. MOULTON: MR. STRAUGHN: -- control your client? 14 Q. My name is Tim Moulton. I represent State Farm, MR. HERNANDEZ: We're almost done. 15 and that's Mr. Kestenbaum's insurance company. MR. STRAUGHN: You shouldn't be making 16 And our interest in this case is essentially comments on the records. 17 that there was the flood on October 10 of '21 that caused MR. HERNANDEZ: That goes both ways. 18 damage to the home, and State Farm paid 76,905.80. And so Let's try to wrap this up. 19 State Farm is bringing an action against your company -- Q. BY MR. HERNANDEZ: Do you have a statutory agent 20 you and your company for that money. And that's what I for the company, Mr. Syla? 21 want to talk about. A. No. 22 Let's just talk big picture. You're a Q. Who was the -- 23 licensed general contractor? A. What do you mean "statutory agent"? Can you be 24 A. Yes. more specific? 25 Q. And so the company is licensed, but you had a

ANITA LANDEROS REPORTING, INC. (602) 230-8793 Page 26 (Pages 101-104) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 101 Page 103

partner that you worked under his license -- or with his 1 with that? license until you could get it yourself; is that what 2 A. Yes. happened? 3 Q. And if you fail to do that, you agree that you A. He cosigned me. 4 would be breaching your responsibilities as a general Q. Cosigned, okay. 5 contractor? And it sounds like he didn't really do a 6 A. I agree. Mistakes happen, but I agree. whole lot of the construction work. He just allowed you 7 Q. Okay. Let's talk about the laundry room drain, to cosign under his license? 8 because that's really all I'm interested in -- A. Yes. 9 A. Yeah. Q. Okay. And then you got the license on your own? 10 Q. -- because remember I told you, State Farm paid A. Yes. 11 for the flood damages to the structure -- Q. Mr. Syla, about six months or a year ago. Is 12 A. Yeah. that -- 13 Q. -- and I want to focus on that. A. Yes. 14 But before I do that, from looking at these Q. Okay. Got it. 15 documents, Mr. Syla, and am I pronouncing your name Now, as a general contractor, I noticed on a 16 correctly? lot of these exhibits here, for example, on Exhibit 3, it 17 A. Yes. says "Estimate." It says "N&E Construction LLC, licensed 18 Q. Thank you. insured and bonded." And then it has Registrar of 19 It looks like from Exhibits 2 and 3, that Contractor Number 291996. 20 the time frame that we're talking about here is -- it A. Yes. 21 looks like Exhibit 2, it says April 22nd of '21. And then Q. And so is that when you got together with 22 the date of July 22nd (sic) -- 26-21, we know the flood Mr. Kestenbaum and reached an agreement about doing work 23 was in October of '21. at his home, as a general contractor? Did you hold 24 Is essentially the history or the time frame yourself out, you and your company, as a licensed general 25 of your job with the Kestenbaums as a general contractor,

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contractor? 1 was it in 2021, basically from March or April through A. Yes. 2 October? Is that the correct time frame? Q. Okay. And so you represented to him that you 3 A. Yes. were licensed -- that you were a licensed general 4 Q. And I want to understand kind of how you came to contractor and that you would do the work and supervise 5 be a general contractor for Mr. Kestenbaum. Did he the work and direct the work and hire subs and that kind 6 contact you based on an advertisement? Did you solicit of thing? 7 the work? How did you get the work? A. Yes. 8 A. He contacted me. Q. And you would do it in a proper, professional 9 Q. And did you have -- did you advertise? Did you manner; is that correct? 10 have a Yellow Page ad? Do you know how he located you in A. Yes. 11 any way? Q. Okay. So you essentially held yourself out in 12 A. Recommendation, I think. Recommendation. that way and you promised Mr. Kestenbaum and his family, 13 Q. So he contacted you based on a recommendation? your customer, that you would do that? 14 A. Yes. A. Yes, I do that with all of my customers. 15 Q. And then when he contacted you, did you come out Q. And you agree that it was your obligation and 16 to his home and meet with him and talk to him about the responsibility to act professionally and competently and 17 job? diligently as a general contractor -- 18 A. Yes. A. Yes. 19 Q. Okay. And then would that be maybe March or Q. -- in doing the work? 20 February of '21, or can you give me some kind of estimate A. For my scope of work, yes. 21 of a time frame? Q. And one of the things that a general contractor 22 A. Somewhere there, March, March, February, is responsible for is to make sure that both he or she and 23 somewhere around there. the company and the subcontractors are licensed, trained, 24 Q. Okay. And then I have a document here. I think competent and able to do the job correctly. Do you agree 25 it's exhibit --

ANITA LANDEROS REPORTING, INC. Page 27 (Pages 105-108) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 105 Page 107

What number is this one? I can't remember. 1 Q. Okay. And did you acknowledge at that time or at MR. HERNANDEZ: I want to say 7. 2 any time since, that the drain, the plumbing system, the MR. MOULTON: I should have written it down. 3 lack of a washer box was, in fact, a mistake and -- What number is this? 4 A. No. Because I wanted to see what was the MR. HERNANDEZ: I think it's 8. 5 problem. I never got the chance to see the problem. Q. BY MR. MOULTON: So on Exhibit 8, on Bates Stamp 6 Q. So you don't know one way or the other whether Number 89, this is Donley AC & Plumbing. I just want to 7 your work, and the worker, your sub, was defective? bring something up. 8 A. No. We never get the chance to go back. On that page it says October 11th, 2021. 9 Q. So it may very well have been defective and a And it says, quote, "Customer had flood over the weekend 10 problem, but you don't know? from washer." 11 A. I don't know. I was not able to go back. If it And then it says -- a sentence or two in, it 12 was normal conversation: Hey, I think this is your fault says: "Customer fired contractor and wants us to finish 13 or something. I want to go back. remodel plumbing work." 14 It was Sunday, I believe. And I said: Did you get fired by Mr. Kestenbaum on or 15 "I'll be there Monday morning." about the day of the flood? 16 But the threat was there: Don't step foot A. Yes. He threatened me not to go back. So I 17 in my property. guess it's a fire. He threatened me not to go back or 18 Q. Now, the way that I understand all of these anyone back in his house. 19 documents and your testimony, Mr. Syla, is that you are Q. And I know you and Mr. Kestenbaum probably know 20 not a licensed contractor -- I mean, a licensed plumbing this, but I wasn't involved. 21 contractor? Was it after the flood that he contacted you 22 A. Yes. and said: You're done; don't come back? 23 Q. Is that correct? A. Yes. I need to see what the problem was, but he 24 A. I'm not a licensed plumber, yes. threatened me not to come back. 25 Q. And so you basically admit that you do not really

Page 106 Page 108 Q. And did he tell you that part of the reason was 1 have sufficient knowledge, training and expertise to be a that the drain and the plumbing system in the laundry room 2 licensed plumbing contractor? and the lack of washer box caused a flood, and that's why 3 A. Exactly, correct. you were fired? 4 Q. So you relied on Mr. Delgado and his expertise? A. He told me there was a flood and he blamed me and 5 A. Yes, of course. that's the reason. He just said: I don't want anybody 6 Q. But you knew all along, didn't you, that he was here and threatened me that if I come, he will call the 7 not a licensed plumbing contractor? police. 8 A. I knew that it wasn't a license, yes, that's Q. Thank you. 9 correct. So that's the time. I just want to 10 Q. And so you knew that he was not licensed, but yet understand. 11 you relied on him in doing the Kestenbaum work? A. Yes. 12 A. Yes. Q. So it was the flood? 13 Q. Okay. And you agree that that was a mistake? A. Yeah. 14 A. That was a mistake, yes. Q. So for lack of a better term, the straw that 15 Q. And you agree that it is your responsibility to broke the camel's back? 16 make sure that you use competent, well-trained, A. Yes, in his belief. 17 experienced, licensed plumbing contractors? Q. And so he basically says: You're fired. Don't 18 A. I agree. Yeah, I agree, licensed. But I don't come back. 19 know for sure if it was our problem. That's why -- we A. If you show up, I'll call the police. You're 20 never got a chance to see if it was my guy's problem. And done. 21 that's what I wanted to make sure. Q. And did he say: I hold you responsible for the 22 Q. But you certainly understand from flood? 23 Mr. Kestenbaum's point of view, that if his house was A. Well, yes, of course, he said that to me. That's 24 flooded and he's upset about it, that maybe you can kind why he didn't want me back. 25 of understand if he said: You're fired. Don't come back.

ANITA LANDEROS REPORTING, INC. Page 28 (Pages 109-112) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 109 Page 111 You can understand that, flooded his house? 1 A. -- I know that I told his wife that we will go A. Understand. But I should at least check my work 2 back and check it. And I took the other guy's opinion that I did and see where the problem was. Because anybody 3 into the consideration that wanted to check if it's done can step foot there and do anything. 4 right. So he didn't give me the chance, okay. It 5 Q. So sometime between September 22nd, when Donley didn't leak at that moment when it was installed. But he 6 said: Hey, there's a problem with these drains and didn't give me the chance. 7 they're not right and the flood, you found out about it, Q. Okay. Thank you for that. 8 and you and Mr. Delgado planned to go and check it out? I have a little bit more. Thank you for 9 A. I was planning, yeah. your patience. I know that it's been long day. 10 Q. Okay. We retained an expert witness, Chantell 11 A. Forced to go check out what was the problem, but Cornett. And she did an investigation and looked at all 12 we never got the chance. of the contracts and records and materials, and there's 13 Q. Okay. Well, September 22nd is several weeks, you something in her affidavit I want to ask you about. 14 know, at least a couple of weeks between September 22nd The information she had was that on about 15 and the flood on October 10th. September 22nd, 2021, prior to the flood, Donley 16 Did you ever go to the home during that air-conditioning came out to Mr. Kestenbaum's home and was 17 period of time, Mr. Kestenbaum's home? doing some plumbing and basically reported to 18 A. I believe we went back. It was no flood. And Mr. Kestenbaum: Hey, the water lines and drain, et 19 then they were away for the weekend. We don't work. And cetera, involving the washing machine are improper. They 20 then when they came back on Sunday, they said it was weren't properly done. 21 flooded. Did you ever hear about that in September of 22 Q. Okay. So -- 2021? 23 A. But during the week it didn't happen, any flood. A. Yes, from his wife. 24 Q. So is it your testimony, then, between Q. Okay. And was that the text? 25 September 22nd of '21 and the flood, you and Mr. Delgado

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A. The text, yes. 1 called, e-mailed, went to the home of Mr. Kestenbaum to Q. Also in this affidavit of this expert, she noted 2 try to take a look at the drains and fix them and they that Mr. Kestenbaum and/or his wife contacted you 3 weren't home, or what happened? regarding what Donley said about these drains in the 4 A. I don't recall exactly, but I know that we went laundry room. And, according to this expert, you or your 5 back and there was no -- plumber responded that the installation of the drains and 6 Q. I'm sorry. You actually went back and looked at the piping in the laundry room, quote, met industry 7 the drain and looked at the lack of a washer box? standards. 8 A. We looked at it. There was no leak. No problem. Did you tell Mr. Kestenbaum that? 9 And then all of a sudden it was a flood. A. Met what? 10 Q. Was the washer running at that time? Q. Met industry standards. 11 A. I don't recall that. A. No. 12 Q. Okay. Q. Okay. Did you ever have Mr. Delgado contact the 13 A. I don't recall that. Kestenbaums or Donley or anybody -- 14 Q. Was Mr. Delgado with you? A. No. 15 A. I believe, yeah, he was with me. Q. -- else to talk about the drain? 16 Q. And it was just one time? A. No. 17 A. One time. And that was -- Q. Talk about the pipes? 18 Q. Was Mr. Kestenbaum home? A. No. 19 A. I don't recall that. He was in and out all of Q. Talk about the lack of a washer box? 20 the time -- most of the time. A. No. 21 Q. What about his family? Was anybody -- was any Q. Did you ever discuss it with Alberto? 22 member of his family -- A. I discussed it. I don't recall exactly that I 23 A. Probably his wife. I don't recall. discussed it regarding that, but -- 24 Q. So I just want to understand. Your memory is Q. And that was -- 25 that you went back one time with Mr. Delgado. And just

ANITA LANDEROS REPORTING, INC. Page 29 (Pages 113-116) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 113 Page 115

tell me your best memory. Was anyone else there? 1 flood? A. Someone was. No, I don't recall it. 2 A. I don't recall meeting. Q. And after that visit, did you e-mail, text, call, 3 Q. You don't recall being at the home? write a letter to Mr. Kestenbaum and say: Hey, 4 A. I don't remember exactly if it was that day. Mr. Delgado and I went out there. We checked it out. And 5 Q. So -- it's fine. It's safe. It's okay? 6 A. I cannot comment yes or no. Did you ever do that? 7 Q. The flood happened over the weekend, right? A. I don't recall that. 8 A. Yeah. I believe he came back Sunday. They came Q. All right. So no communication -- 9 back Sunday. Saturday or Sunday, 'cause -- A. I can't say no or yes. I don't recall that as 10 Q. If it happened -- go ahead. far as that. 11 A. -- because it was Monday. Q. So no communication between you and Mr. Delgado 12 As I recall, it was in my mind that I was that you're aware of and the Kestenbaums or any member of 13 wanting to go and check it out on Monday morning. the Kestenbaum family about the drain being checked out 14 Q. Okay. When you heard about the flood -- and we thought it was fine? 15 A. Yeah. A. I don't recall that. 16 Q. -- how many days before you learned about the Q. Now, you agree, though, that if they had a big 17 flood were you at the house? flood and it was out of the laundry room, and the drain 18 A. A few days. It should have been by middle of the didn't sufficiently drain, then there's a problem, right? 19 week or something. Do you agree if there's a flood like that, 20 Q. So sometime a few days before the flood, you were there's a problem? 21 at the home? A. Yes, if it's a flood, it is a problem. 22 A. Yes. Q. Okay. 23 Q. And what was your purpose for being at the home A. But the cause of it, I don't -- I never had a 24 on that occasion? chance to look what was the cause exactly. 25 A. Job site visit, probably.

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Q. Do you agree that had you or Mr. Delgado 1 Q. Okay. installed a washer box, that the flood of the house would 2 A. Job site visit. I didn't go for -- I went there have been avoided? 3 if there was a reason to go. MR. STRAUGHN: Form. 4 Q. Okay. So in that last visit, a few days before THE WITNESS: I don't recall that. No 5 the flood, who was with -- did you have any of your comment on that. 6 employees or subcontractors with you? Q. BY MR. MOULTON: It's certainly possible; isn't 7 A. It's hard to recall. Probably they were working it? 8 on the master bathroom. It's hard to recall. A. It is. 9 Q. Okay. And that last visit, a few days before the Q. And that's the whole reason you have a washer box 10 flood, did you meet with Mr. Kestenbaum? is in case you have a flood like this, true? 11 A. His wife, I believe or you. A. True. 12 Q. Is that a yes? MR. MOULTON: Thank you for your patience. 13 A. I don't recall. I'm not 100 percent sure. I don't have any further questions. 14 Q. And that last visit to the home, before the MR. STRAUGHN: We'll read and sign. 15 flood, a few days before the flood, did you inspect the MR. HERNANDEZ: I do have some follow-up. 16 plumbing connecting to the washing machines? 17 A. I recall that we inspected. FURTHER EXAMINATION 18 Q. Okay. BY MR. HERNANDEZ: 19 A. Delgado, and it was fine. Q. So, Mr. Syla, there's been quite a bit of 20 Q. And at that time -- testimony about what happened between the Donley visit on 21 A. I don't know the time period we inspected it. It or about September 22nd and the flood, which occurred on 22 was fine. or about the 10th or 11th of October. 23 Q. And at that last visit before the flood, did you So focusing in on that time frame, do you 24 turn the water valve on? recall meeting with Mr. Kestenbaum the Friday before the 25 A. I don't recall that, if I turned --

ANITA LANDEROS REPORTING, INC. Page 30 (Pages 117-119) DEPOSITION OF ERMAL SYLA September 29, 2022 Page 117 Page 119 STATE OF ARIZONA ) Q. Okay. ) ss. A. -- I don't recall that, if it was before or 2 COUNTY OF MARICOPA ) prior. BE IT KNOWN that the foregoing proceedings were taken before me; that the witness before testifying MR. HERNANDEZ: No further questions for was duly sworn by me to testify to the whole truth; that the foregoing pages are a full, true and accurate record today's purpose. of proceedings, all done to the best of my skill and Again, we reserve our right to call Mr. Syla 6 ability; that the proceedings were taken down by me in shorthand and thereafter reduced to print under my back once additional documents are produced in the case. 7 direction. MR. STRAUGHN: Read and sign. I certify that I am in no way related to any of the parties hereto nor am I in any way interested in (The deposition concluded at 1:25 p.m.) the outcome hereof. 10 [X] Review and signature was requested. [ ] Review and signature was waived. [ ] Review and signature not required. [ ] Review and signature was requested, but deponent did not do so within 30 days after notification. 14 I certify that I have complied with the ethical obligations set forth in ACJA 7-206 (F)(3) and ACJA 7-206 (J)(1)(g)(1) and (2). Dated at Phoenix, Arizona, this 22nd of October, 2022. 17 /s/ Anita Landeros _________________________ 18 ANITA LANDEROS, RPR Certified Reporter Arizona CR No. 50538 20 * * * * * * 21 I certify that ANITA LANDEROS REPORTING, INC., 22 has complied with the ethical obligations set forth in ACJA 7-206 (J)(1)(g)(1) through (6). /s/ Anita Landeros ________________________________ ANITA LANDEROS REPORTING, INC., Registered Reporting Firm Arizona RRF No. R1077

Page 118

SIGNATURE PAGE I, the undersigned, say that I have read the foregoing transcript of testimony taken on September 29, 2022, and I declare, under penalty of perjury, that the foregoing is a true and correct transcript of my testimony contained therein. EXECUTED this _____ day of _______________, 2022. ________________________ ERMAL SYLA

ANITA LANDEROS REPORTING, INC. 2. On Time: Both your application for renewal and the required fee are either: a. Received by the Registrar on or before the renewal date, or b. Deposited in the U.S. mail postage prepaid on or before the renewal date. 3. Felony Conviction Disclosure: No one named on your license has been convicted of a felony that has not been previously disclosed to the registrar.

4. Business Entities: Any business entity named on the license that is required to be registered, is currently active and in good standing with the Arizona Corporation Commission. To check the status of your entity, go to https://ecorp.azcc.gov/EntitySearch/Index.

Warning: Misrepresentation of any material fact in a license renewal application may be grounds for rejection of the license application under A.R.S. § 32-1154(A)(5), or the subsequent revocation of a license under A.R.S. § 32- 1154(A)(19).

If you need to update your address or contact information, please fill in the information below or go to our website at www.roc.az.gov to submit an address change form.

Company Mailing Address: , United States of America

Company Physical Address: 1401 N Cliffside Dr GIlbert , AZ 85234 United States of America

Phone Number: (602) 618-7847

Email Address: [email redacted]

1700 W. Washington Street, Suite 105 ● Phoenix AZ 85007-2812 602.542.1525 ● Within AZ 877.692.9762 ● Fax 602.542.1599 ● www.roc.az.gov Rev.3/28/2022 Page 2 of 3 EXHIBIT 5 ESTIMATE Ken Kestenbaun

N&E Construction LLC Licensed,Insured and Bonded ROC#291996 Estimate # 000338 Phone: (602) 618-7847 Date 04/22/2021 Email: [email redacted]

Description Total

Kitchen $8,600.00 -Removing the pantry door -Demo corner pantry -Remove drywall and any electrical to use the corner for new kitchen layout -Run new circuits for as per new lay out -Move the gas line for new cook top location -Move icebox and water line for the fridge -Drywall tape and texture to match existing

Master Bathroom $22,850.00 -Disconnect plumbing -Demo shower completely -Demo tub completely -Demo wall by the shower for new lay out and by the toilet -Demo counter top, vanity, mirrors and lights -Remove pocket door on bathroom entree -Close the glass blocks -Reframe the area by the toilet and shower to make both sides biger -Electrical done per owners specification -Install new plumbing for shower -Move drain and water line for free standing tub as needed -Build a niche in the back side wall behind free standing tub -Build shower pan with curdy drain -Supply and install dan shield all around the shower -Supply and install green drywall around tub -Tape and texture as needed -Waterproof entire shower -Install a barn door -Install plumbig fixtures -Supply and install framless glass shower door -Install swing or barn door on toilet area as costumer requires

Subtotal $31,450.00 Total $31,450.00

Signed on: 04/22/2021 Ken Kestenbaun

EXHIBIT 6 EXHIBIT 7 EXHIBIT 8 Douglas A. Ducey, Governor Jeffrey L. Fleetham, Director

Complainant: Kenneth Kestenbaum

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C017 4/21 Douglas A. Ducey, Governor Jeffrey L. Fleetham, Director

Respondent: N & E Construction LLC DBA: 1401 N Cliffside Dr Gilbert, AZ 85234-2660

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C017 4/21 Douglas A. Ducey, Governor Jeffrey L. Fleetham, Director

December 23, 2022

Dismissal Letter Re: Complaint No. 2022-09307;

Dear Complainant:

On December 19, 2022, Respondent informed the Registrar of ongoing litigation between the parties in Case No. CV2021-016451. In review of that case's docket, it appears that Complainant filed that lawsuit in October 2021, and the case is in the discovery phase with oral argument scheduled.

Therefore, in order to avoid parallel civil and administrative proceedings, the Registrar declines to exercise its discretion to issue a citation in this matter. The Registrar will rescind the December 12, 2022 Written Directive, and will close the case. Once a final judgment is rendered by the civil court, Complainant may notify the Registrar of such judgment. The Registrar will at that time consider re-opening this complaint.

Therefore, the Registrar will not issue a citation in this matter. The complaint is hereby dismissed.

Sincerely,

Steve Klein Steve Klein, Investigator #174 (602) 771-6754 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

CC: Respondent Complainant Choose an item. Choose an item.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C017 4/21 EXHIBIT 9 Date: September 29, 2023 Application Number: APP-[number redacted] Date User Title Note Renewal received 4/7/2020 Mike Murphy Renewal Application 4/6/2020; Fees Good; Bond Good; AZCC Good; Renewal Approved.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov EXHIBIT 10 EXHIBIT 11 Clerk of the Superior Court *** Electronically Filed *** 06/27/2023 8:00 AM SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

CLERK OF THE COURT HONORABLE RANDALL H. WARNER A. Meza Deputy

KENNETH KESTENBAUM ISAAC P HERNANDEZ

v.

N & E CONSTRUCTION L L C JOHN J BELANGER

TIMOTHY L MOULTON JUDGE WARNER

MINUTE ENTRY

East Court Building – Courtroom # 414

11:00 a.m. This is the time set for Oral Argument regarding Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment, and Defendant N&E Construction, LLC’s March 10, 2023 Response to Plaintiff Kenneth Kestenbaum’s Motion for Partial Summary Judgment and Counter-Motion for Summary Judgment Regarding Punitive Damages. Plaintiff, Kenneth Kestenbaum, is represented by counsel, Isaac P. Hernandez. Consolidated Plaintiff, State Farm Fire and Casualty Company, is represented by counsel, Timothy L. Moulton. Defendant, N&E Construction, LLC, is represented by counsel, John J. Belanger and Terry W. Straughn. All appearances are in person.

Court reporter, Diane Donoho, is present and a record of the proceedings is also made digitally.

The Court has reviewed the briefs related to Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment, and Defendant N&E Construction, LLC’s March 10, 2023 Response to Plaintiff Kenneth Kestenbaum’s Motion for Partial Summary Judgment and Counter-Motion for Summary Judgment Regarding Punitive Damages. Docket Code 005 Form V000A Page 1 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

Oral argument is presented to the Court.

Based on the matters presented,

IT IS ORDERED taking these matters under advisement.

The Court advises that, as part of judicial rotation, Judge Jennifer Ryan-Touhill will assume this calendar on July 1, 2023.

11:31 a.m. Matter concludes.

Later

This construction dispute arises from plumbing work Defendant N&E Construction, LLC did at Plaintiff Kenneth Kestenbaum’s home. Kestenbaum moves for partial summary judgment, arguing that the evidence conclusively shows N&E was negligent in several respects, and also arguing for summary judgment on punitive damages. N&E cross-moves for partial summary judgment on punitive damages.

As an initial matter, Kestenbaum’s contract and tort claims must be distinguished. Under the economic loss rule, Kestenbaum is generally limited to contract remedies for defective work, but there is an exception for defective work that damaged “other property.” Flagstaff Affordable Hous. Ltd. P’ship v. Design All., Inc., 223 Ariz. 320, 326 (2010). Here, the economic loss rule precludes a negligence claim for the cost of redoing the steam shower or installing a laundry box. Assuming N&E did its work improperly, these are repair costs recoverable only in contract. The economic loss rule does not, however, preclude a negligence claim based on damage to the wood floor, or based on water damage to property other than the plumbing work.

Precisely which damages may be claimed in tort and which may be claimed only in contract will have to be decided at trial, assuming the difference matters in this case. It is not clear that there is a substantive difference between asking whether N&E exercised reasonable care and asking whether it performed in a workmanlike manner. See, e.g., Woodward v. Chirco Const. Co., 141 Ariz. 514, 515, 687 P.2d 1269, 1270 (1984) (“we agree with those jurisdictions that have held that injury incurred due to negligent construction of a residence may give rise to an action for breach of the implied warranty of workmanlike performance”). The Court rejects N&E’s argument that the breach of contract claim does not allege breach of the implied warranty of workmanlike performance.

Docket Code 005 Form V000A Page 2 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

Turning to Kestenbaum’s Motion, his burden under Rule 56 is high. Unlike a defendant’s motion for summary judgment, which asks whether a jury could find in favor of the plaintiff, a plaintiff’s motion for summary judgment asks whether the jury would have to find in favor of the plaintiff. “[A] plaintiff may only obtain summary judgment if it submits undisputed admissible evidence that would compel any reasonable juror to find in its favor on every element of its claim.” Comerica Bank v. Mahmoodi, 224 Ariz. 289, 293 (App. 2010).

This is an important distinction. In several instances, Kestenbaum presents evidence on an issue and N&E presents no controverting evidence. If Kestenbaum’s evidence is so strong that it would compel the jury to find in his favor, then N&E must produce controverting evidence which creates a genuine fact dispute. Ariz. R. Civ. P. 56(e); Portonova v. Wilkinson, 128 Ariz. 501, 502, 627 P.2d 232, 233 (1981). But if Kestenbaum’s evidence would permit but not compel the jury to find in his favor, then N&E need not produce controverting evidence to avoid summary judgment.

Kestenbaum argues that the evidence conclusively shows N&E was negligent in failing to install a “laundry box.” It is uncontroverted that a laundry box is designed to allow proper drainage from the washing machine, and that N&E did not install one. Based on that evidence, the jury could find N&E was negligent and did not perform its work properly. But the evidence is not conclusive so as to compel a finding that N&E was negligent. Nor does the evidence conclusively show N&E’s work was the cause of flooding in the laundry room, or what damage that flooding caused.

Kestenbaum is entitled to summary judgment that N&E was negligent in using the wrong tape to secure protective plastic on the wood floor, and the use of that tape damaged the floor. Kestenbaum presents evidence that the wrong tape was used, and when the tape was removed it ripped off pieces of the floor. N&E presents no controverting evidence. Based on the evidence, a reasonable jury would have to find N&E negligent for using the wrong tape.

Kestenbaum is not entitled to summary judgment with respect to the steam shower. It is uncontroverted that N&E did not build the steam shower according to manufacturer’s recommended standards, and that fact alone would permit the jury to find N&E negligent. But it does not conclusively establish negligence. For example, there is no expert testimony in the record that a plumber’s standard of care always requires it to install a steam shower to manufacturer’s recommended standards. Nor does the evidence conclusively show that the failure to build the steam shower to manufacturer standards caused damage.

The evidence does show conclusively that N&E was negligent in having the work done by unlicensed plumbers who were not under the qualifying party’s supervision. It is uncontroverted that the qualifying party for N&E’s license was not involved in supervising any Docket Code 005 Form V000A Page 3 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

of N&E’s work or operations at the time it did work for Kestenbaum. See A.R.S. § 32-1101(8) (“‘Qualifying party’ means a person who is responsible for a licensee’s actions and conduct performed under the license and who . . . [i]s regularly employed by the licensee.”). But a fact question exists as to whether that breach of duty caused any of Kestenbaum’s damages.

On the issue of punitive damages, N&E is entitled to summary judgment. The standard for punitive damages in negligence cases is high. Kestenbaum must prove by clear and convincing evidence that N&E’s conduct both created a substantial risk of tremendous harm and was outrageous, oppressive, or intolerable. Swift Transportation Co. of Arizona L.L.C. v. Superior Court, 253 Ariz. 499, 505 (2022). At worst, Kestenbaum can show that N&E did shoddy work while knowingly flouting Arizona’s statutory regimen for contractors. This is not enough to award punitive damages.

IT IS ORDERED granting in part Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment as set forth above.

IT IS FURTHER ORDERED granting Defendant’s March 10, 2023 Counter-Motion for Summary Judgment Regarding Punitive Damages.

Docket Code 005 Form V000A Page 4 Received 10/13/2023 ROC Legal 1151/02

Guy W. Bluff, Esq. #010778 BLUFF & ASSOCIATES 4205 N. 7th Ave, Ste. 201 Phoenix, Arizona 85013-3079 Tel: 505-300-5310 e-Fax: 623-748-5429 [email redacted] Attorney for Respondent

BEFORE THE REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2023-08164 Complainant, WRITTEN ANSWER TO v. CITATION AND COMPLAINT N&E Construction, LLC., License No. ROC 291996 Respondent

Respondent N&E Construction, LLC, by and through its counsel undersigned, hereby submits this written answer to the citation filed against it in the above-captioned matter dated October 3, 2023. Respondent denies each and every allegation of wrongdoing contained in the complaint. Respondent further denies violating A.R.S. § 32-1154(A)(9); § 32- 1154(A)(18); and § 32-1154(A)(19). WHEREFORE, having fully answered the Citation and Complaint, Respondent requests that the same be dismissed. In the event that this matter is not dismissed, Respondent requests that this matter be transferred to the Office of Administrative Hearings for a full evidentiary hearing.

ROC 2023-08164 -1- Written Answer to Citation Received 10/13/2023 ROC Legal 1151/02

DATED this 15th day of October, 2023. BLUFF & ASSOCIATES

By: Guy W. Bluff, Esq. Attorney for Respondent

Original filed this 15th day of October, 2023 with: (Mark Form of Service) ARIZONA REGISTRAR OF CONTRACTORS Delivered 1700 W. Washington Street, Suite 105 [email redacted] E-Filed Phoenix, Arizona 85007 Mailed

Copy of the foregoing served this 15th day of October, 2023 upon: Name of Party / Representative Service Method Robert Stirling, Esq. – Assistant Attorney General Delivered ARIZONA REGISTRAR OF CONTRACTORS Faxed Legal Department [email redacted] E-Filed Phoenix, Arizona 85012 Mailed Attorney for Complainant 2023-10-15 Answer to Citation

ROC 2023-08164 -2- Written Answer to Citation Received 10/16/23, 8:44 AM State of Arizona Mail - 2023-08164 Answer to Citation and Complaint 10/13/2023 ROC Legal

Answers - AZROC <[email redacted]>

2023-08164 Answer to Citation and Complaint message

Guy W. Bluff <[email redacted]> Sun, Oct 15, 2023 at 2:52 PM To: [email redacted], [email redacted] Cc: Syla Ermal <[email redacted]>, "Guy W. Bluff" <[email redacted]>

Please see attached Answer to Citation dated Oct/3/2023.

Guy W. Bluff, Esq.

Tel: ABQ 505-300-5310; Fax 623-748-5429 Dreamstyle: 5520 Midway Park Pl NE, Albuquerque, NM 87109 Mail Only: 5901-J Wyoming Blvd NE #299, Albuquerque, NM 87109-3873

2023-10-15 Answer to Citation.pdf 404K

https://mail.google.com/mail/b/AEoRXRQXFC1IBxcAsIY6y6HN2YJ_MKlLJ0lrxxXnvZAWjl7_5A9N/u/0/?ik=581c53cf5c&view=pt&search=all&permthid… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2023-08164 COMPLAINANT, v. N & E Construction LLC, ORDER DENYING REQUEST TO License No. ROC 291996, DISMISS RESPONDENT. BACKGROUND On October 3, 2023 the Registrar issued a citation against Respondent’s License No. 291996. Respondent filed its Answer on October 13, 2023 The Answer included a request to dismiss the citation and close the complaint. ORDER IT IS ORDERED that Respondent’s request to dismiss is DENIED. The issues underlying the Citation and Complaint are best suited for presentation before the Office of Administrative Hearings. Respondent is free to raise the arguments and defenses presented in its request to dismiss before the administrative law judge. A Notice of Hearing will be issued in due course. Dated October 27, 2023. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 5/21 Copy mailed via USPS First Class mail on October 27, 2023, to: Respondent N & E Construction LLC 1401 N Cliffside Dr Gilbert, AZ 85234-2660 Respondents Attorney Guy W Bluff, Esq. Bluff & Associates 5520 Midway Park Pl NE Albuquerque, NM 87109 Respondents Attorney Guy W Bluff, Esq. Bluff & Associates 4205 N 7th Ave, Ste 201 Phoenix, AZ 85013-3079 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Registrar’s Counsel Assistant Attorney General Licensing [email redacted] Case No. 2023-08164/du

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 5/21 &E Construction LLC Let us build your dream home’!

Resident Bumaing & Remodeling icensed. Bonded. Insured IOC # 291966 J'

hone:602-618-7847 li­ [email redacted]

rmal Syla wner

I Jozef Cudzich, voluntarily declare to hand over the 25% ownership of the N

& E Construction, LLC to Ermal Syla. Therefore, Ermal Syla has 100% ownership of

the N & E Company, LLC. L 24146

Ermlyla

Date:

N&E 000087 Clerk of the Superior Court *** Electronically Filed *** 06/27/2023 8:00 AM SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

CLERK OF THE COURT HONORABLE RANDALL H. WARNER A. Meza Deputy

KENNETH KESTENBAUM ISAAC P HERNANDEZ

v.

N & E CONSTRUCTION L L C JOHN J BELANGER

TIMOTHY L MOULTON JUDGE WARNER

MINUTE ENTRY

East Court Building – Courtroom # 414

11:00 a.m. This is the time set for Oral Argument regarding Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment, and Defendant N&E Construction, LLC’s March 10, 2023 Response to Plaintiff Kenneth Kestenbaum’s Motion for Partial Summary Judgment and Counter-Motion for Summary Judgment Regarding Punitive Damages. Plaintiff, Kenneth Kestenbaum, is represented by counsel, Isaac P. Hernandez. Consolidated Plaintiff, State Farm Fire and Casualty Company, is represented by counsel, Timothy L. Moulton. Defendant, N&E Construction, LLC, is represented by counsel, John J. Belanger and Terry W. Straughn. All appearances are in person.

Court reporter, Diane Donoho, is present and a record of the proceedings is also made digitally.

The Court has reviewed the briefs related to Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment, and Defendant N&E Construction, LLC’s March 10, 2023 Response to Plaintiff Kenneth Kestenbaum’s Motion for Partial Summary Judgment and Counter-Motion for Summary Judgment Regarding Punitive Damages. Docket Code 005 Form V000A Page 1 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

Oral argument is presented to the Court.

Based on the matters presented,

IT IS ORDERED taking these matters under advisement.

The Court advises that, as part of judicial rotation, Judge Jennifer Ryan-Touhill will assume this calendar on July 1, 2023.

11:31 a.m. Matter concludes.

Later

This construction dispute arises from plumbing work Defendant N&E Construction, LLC did at Plaintiff Kenneth Kestenbaum’s home. Kestenbaum moves for partial summary judgment, arguing that the evidence conclusively shows N&E was negligent in several respects, and also arguing for summary judgment on punitive damages. N&E cross-moves for partial summary judgment on punitive damages.

As an initial matter, Kestenbaum’s contract and tort claims must be distinguished. Under the economic loss rule, Kestenbaum is generally limited to contract remedies for defective work, but there is an exception for defective work that damaged “other property.” Flagstaff Affordable Hous. Ltd. P’ship v. Design All., Inc., 223 Ariz. 320, 326 (2010). Here, the economic loss rule precludes a negligence claim for the cost of redoing the steam shower or installing a laundry box. Assuming N&E did its work improperly, these are repair costs recoverable only in contract. The economic loss rule does not, however, preclude a negligence claim based on damage to the wood floor, or based on water damage to property other than the plumbing work.

Precisely which damages may be claimed in tort and which may be claimed only in contract will have to be decided at trial, assuming the difference matters in this case. It is not clear that there is a substantive difference between asking whether N&E exercised reasonable care and asking whether it performed in a workmanlike manner. See, e.g., Woodward v. Chirco Const. Co., 141 Ariz. 514, 515, 687 P.2d 1269, 1270 (1984) (“we agree with those jurisdictions that have held that injury incurred due to negligent construction of a residence may give rise to an action for breach of the implied warranty of workmanlike performance”). The Court rejects N&E’s argument that the breach of contract claim does not allege breach of the implied warranty of workmanlike performance.

Docket Code 005 Form V000A Page 2 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

Turning to Kestenbaum’s Motion, his burden under Rule 56 is high. Unlike a defendant’s motion for summary judgment, which asks whether a jury could find in favor of the plaintiff, a plaintiff’s motion for summary judgment asks whether the jury would have to find in favor of the plaintiff. “[A] plaintiff may only obtain summary judgment if it submits undisputed admissible evidence that would compel any reasonable juror to find in its favor on every element of its claim.” Comerica Bank v. Mahmoodi, 224 Ariz. 289, 293 (App. 2010).

This is an important distinction. In several instances, Kestenbaum presents evidence on an issue and N&E presents no controverting evidence. If Kestenbaum’s evidence is so strong that it would compel the jury to find in his favor, then N&E must produce controverting evidence which creates a genuine fact dispute. Ariz. R. Civ. P. 56(e); Portonova v. Wilkinson, 128 Ariz. 501, 502, 627 P.2d 232, 233 (1981). But if Kestenbaum’s evidence would permit but not compel the jury to find in his favor, then N&E need not produce controverting evidence to avoid summary judgment.

Kestenbaum argues that the evidence conclusively shows N&E was negligent in failing to install a “laundry box.” It is uncontroverted that a laundry box is designed to allow proper drainage from the washing machine, and that N&E did not install one. Based on that evidence, the jury could find N&E was negligent and did not perform its work properly. But the evidence is not conclusive so as to compel a finding that N&E was negligent. Nor does the evidence conclusively show N&E’s work was the cause of flooding in the laundry room, or what damage that flooding caused.

Kestenbaum is entitled to summary judgment that N&E was negligent in using the wrong tape to secure protective plastic on the wood floor, and the use of that tape damaged the floor. Kestenbaum presents evidence that the wrong tape was used, and when the tape was removed it ripped off pieces of the floor. N&E presents no controverting evidence. Based on the evidence, a reasonable jury would have to find N&E negligent for using the wrong tape.

Kestenbaum is not entitled to summary judgment with respect to the steam shower. It is uncontroverted that N&E did not build the steam shower according to manufacturer’s recommended standards, and that fact alone would permit the jury to find N&E negligent. But it does not conclusively establish negligence. For example, there is no expert testimony in the record that a plumber’s standard of care always requires it to install a steam shower to manufacturer’s recommended standards. Nor does the evidence conclusively show that the failure to build the steam shower to manufacturer standards caused damage.

The evidence does show conclusively that N&E was negligent in having the work done by unlicensed plumbers who were not under the qualifying party’s supervision. It is uncontroverted that the qualifying party for N&E’s license was not involved in supervising any Docket Code 005 Form V000A Page 3 SUPERIOR COURT OF ARIZONA MARICOPA COUNTY

CV 2021-016451 06/23/2023

of N&E’s work or operations at the time it did work for Kestenbaum. See A.R.S. § 32-1101(8) (“‘Qualifying party’ means a person who is responsible for a licensee’s actions and conduct performed under the license and who . . . [i]s regularly employed by the licensee.”). But a fact question exists as to whether that breach of duty caused any of Kestenbaum’s damages.

On the issue of punitive damages, N&E is entitled to summary judgment. The standard for punitive damages in negligence cases is high. Kestenbaum must prove by clear and convincing evidence that N&E’s conduct both created a substantial risk of tremendous harm and was outrageous, oppressive, or intolerable. Swift Transportation Co. of Arizona L.L.C. v. Superior Court, 253 Ariz. 499, 505 (2022). At worst, Kestenbaum can show that N&E did shoddy work while knowingly flouting Arizona’s statutory regimen for contractors. This is not enough to award punitive damages.

IT IS ORDERED granting in part Plaintiff’s February 17, 2023 Motion for Partial Summary Judgment as set forth above.

IT IS FURTHER ORDERED granting Defendant’s March 10, 2023 Counter-Motion for Summary Judgment Regarding Punitive Damages.

Docket Code 005 Form V000A Page 4 Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3