ALJDEC - Licensing
2023A-09435-CHC-ROC · Registrar of Contractors · 2025-01-02
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Ralph Onate,
COMPLAINANT
v.
All Star General Contractors LLC
License No. ROC 332937,
RESPONDENT
No. 2023A-09435-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: December 17, 2024
APPEARANCES: Ryan D. Bailey appeared on behalf of Complainant Ralph Onate via Google Meet. Allen Schwartzberg on behalf of All Star General Contractors LLC was represented by Richard R. Luff, who appeared via Google Meet. The Registrar of Contractors Investigator Mike Springer appeared via Google Meet.
ADMINISTRATIVE LAW JUDGE: Adam D. Stone
EXHIBITS ADMITTED INTO EVIDENCE: Complainant’s Exhibits 1-5 and Respondent’s Exhibit A were admitted into evidence.
_____________________________________________________________________
FINDINGS OF FACT
All Star General Contractors LLC (Respondent or “All Star”) is the holder of License No. 332937 issued by the Arizona Registrar of Contractors (Registrar).
On or about May 18, 2022, Complainant hired Jebadiah Sandoval to remodel his home in Safford, Arizona. On or about August 5, 2022, the same parties entered into a change order.
On or about August 15, 2023, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to project.
The Registrar assigned the present complaint to Investigator Mike Springer. The jobsite inspection was performed on September 26, 2023.
Investigator Springer then issued a Written Directive on or about September 27, 2023, which provided in pertinent part as follows:
After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on October 30th, 2023.
...
DIRECTIVE REQUIREMENTS
You are directed to remedy the following violations by the appropriate means:
Compliance Item: 1 - Exterior House Work
-Repair xracks in the stucco
-Power wash the outside of the house
-Paint (walls and trim and door
None of this was completed;
Investigator’s Observation: Respondent has not started any of this work.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 3 - Roof Work
-Roof support system
-Repair and replace wood on roof
-Seal/eliminate roof penetrations
-Supply and install roof insulation only the roof support system was installed
None of rest was completed;
Investigator’s Observation: Only the roof structural work was completed. Respondent states additional issues were discovered regarding parapet leaks. No reroof or coating installed.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 4 - Plumbing
-1/4 turen shut off valves
-plumbing fixtures for complete installation the old lines are out and new lines installed but was not completed with valve and fixtures
None of the rest was completed;
Investigator’s Observation: These items are not complete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 8 – Cabinets
-remove and replave with new upper and lower cabinets
None of this was completed
Investigator’s Observation: These items are not complete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 9 - Closets
Remove and replace with all new hardware.
Investigator’s Observation: These items are not complete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 10 - Front entry room
-finish the room with shelves and coat hangers bar style door from entry to living toom
None of this was completed
Investigator’s Observation: These items are not complete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 11 - Bathrooms
-bath tub and shower to be removed and replaced
Investigator’s Observation: Both bathrooms have been started but not finished. Tile and fixtures incomplete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 12 - all tile shower to be removed and replaced
None of this was completed
Investigator’s Observation: Tile is complete but fixtures missing.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 13 - Counter tops
-reinstalled
None of this was completed
Investigator’s Observation: Existing countertops are to be reused
however new cabinets have not been installed.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 14 - Electrical fixtures and outlets all to be supplied and installed
None of this was completed;
Investigator’s Observation: These items are not complete.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 15 - Front door cement work
None of this was completed
Investigator’s Observation: No work done.
Governing Rule: Violation of any rule adopted by the Registrar;
Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.
Compliance Item: 16 - Garage door
-remove and replacve
None of this was completed
Investigator’s Observation: No work done.
Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner...
(All errors contained in the original).
On November 2, 2023, the Registrar issued a Citation against Respondent, charging possible violations of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a); A.R.S. § 32-1154(A)(12) – A.R.S. § 32-1158; and A.R.S. § 32-1154(A)(22).
On or about November 17, 2023, Allen Schwartzberg submitted a Motion to Intervene, and Interested Party’s Response to Complaint, whereby he stated that on August 24, 2022, he sold All Star to Denise Hernandez, and had nothing to do with the contract with Mr. Onate.
On or about December 4, 2023, a Notice of Hearing was issued setting a hearing on January 16, 2024, at the Office of Administrative Hearings, an independent state agency.
At hearing, Investigator Springer testified as to the Registrar’s involvement and the above timeline and findings from her inspections.
Investigator Springer testified generally as to the above timeline.
Investigator Springer also testified that he reviewed the issue of the sale of the business with the Registrar’s legal department, and it was determined that because Mr. Schwartzberg was still listed as the Qualifying Party, it was still appropriate to proceed against Respondent for a Licensed Contractor Complaint.
Complainant testified that he knew Mr. Sandoval from a mutual friend, and was aware that he was buying a business. Complainant testified that he was always under the impression that it was All Star he was doing business with and checked the Registrar’s website to ensure that All Star was licensed.
Further, as to the payments made, Complainant testified that Mr. Sandoval instructed him to make the payments to him because the bank paperwork for Respondent had not been established.
Complainant testified that much of the work has not been completed and/or repaired and said that he paid nearly 80% of the contract price but only got 30% of the work.
Allen Schwartzberg was the Qualifying Party for Respondent. He testified that he formed the All Star in February 2022, but then entered into an agreement to sell the business in August 2022 to Denisse Hernandez.
Mr. Schwartzberg testified that he never bid on Complainant’s job, never performed any of the work and never received any of the monies from the job.
Further, Mr. Schwartzberg testified that he filed a Notice of Qualifying Party Disassociation form with the Registrar of Contractors on September 7, 2022
Administrative notice was taken of Respondent’s prior License record on January 2, 2025. Such prior License record reflected that Respondent’s License No. 332937 was first issued on April 8, 2021 and expired on May 1, 2024, and reflected that there was one open case, namely the present case. The License record also reflected that Allen Schwartzberg was the Qualifying Party.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction. See A.R.S. § 32-1101 et seq.
Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A) and A.A.C. R2-19-119(B)(1); see also Vazzano v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.” Morris K. Udall, Arizona Law of Evidence § 5 (1960).
The preponderance of the evidence established that Allen Schwartzberg was not aware of any contract to perform work for Complainant. Both the initial contract entered into in May 2022, and the change order in August 2022, were done prior to the sale of the business and were signed by Jebadiah Sandoval (not even Denisse Hernandez). Further, while Complainant testified that Mr. Sandoval told him he was buying All Star, he was still unlicensed at the time and he had no legal right to bind All Star into a contract.
RECOMMENDED ORDER
Therefore, the tribunal recommends that this matter against All Star General Contracting LLC be dismissed, and that the Registrar pursue and Unlicensed Contracting complaint against Mr. Sandoval and Mrs. Hernandez.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.
Done this day, January 2, 2025.
/s/ Adam D. Stone
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
Richard R. Luff
[email redacted]
Ryan D. Bailey, Esq.
Stone Canyon Law
[email redacted]
By: OAH Staff