2023A-11492-OMC-LS-ROC Notice of Hearing and Packet MAILED

2023A-11492-OMC-LS-ROC · Registrar of Contractors · 2024-03-14

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2023-11492 COMPLAINANT, Docket No. 2023A-11492-OMC-LS- ROC v. NOTICE OF HEARING ON Patterson Homes LLC CONTESTED CASE DBA: Patterson Restoration, License No. ROC 315545,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

April 26, 2024 9:00 AM Adam Stone 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 February 12, 2024.

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) - (7) Conviction of a felony.

The conduct and circumstances set forth in Paragraphs 8-20 above

constitute a violation of this section. Mr. Patterson is a person named on

Respondent’s license and has recently been convicted of a felony.

Charge 2: A.R.S. § 32-1154(A)- (12) Failure in any material respect to comply with this chapter. Specifically, A.R.S. § 32-1122(B) To obtain, renew or maintain a license under this chapter, the applicant or licensee shall: 1. Submit to the registrar of contractors a verified application on forms that are prescribed by the registrar of contractors

and that contain the following information: (d). If the applicant is a

limited liability company, the names and addresses of all of the

following, as applicable: (if the applicant is a manager-managed

limited liability company, all managers… (iii) All owners of twenty- five percent or more of the stock or beneficial interest. ** 4. Notify the registrar of any change in the information required by this section within thirty days after the change occurs. The conduct and circumstances set forth in Paragraphs 1-14, and 20-22 above constitute a violation of this section. Respondent has failed to provide the Registrar with forms containing all of the managers and beneficial owners of Respondent, after it changed its ownership and management.

Charge 3: A.R.S. § 32-1154(A) – The holder of a license or any

person listed 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. The conduct and circumstances set forth in Paragraphs 1-22 above constitute a violation of this section. Had the Registrar known that Respondent’s management and beneficial ownership had changed, and included Patterson, it would not have

renewed Respondent’s license.

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/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

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 March 14, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail March 14, 2024 to: Respondent(s) Patterson Homes LLC DBA: Patterson Restoration, 9170 E Bahia Dr, Suite 106 Scottsdale, AZ 85260 Andrew R. DiCarlo, Esq. 15029 N Thompson Peak Pkwy Ste B-111 #406 Scottsdale, AZ 85260

Complainant(s) Arizona Registrar of Contractors 1700 W Washington St Ste 105 Phoenix, AZ 85007 Mona Baskin, 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’s Attorney at email address of record with Registrar[

Case No. 2023-11492 /

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

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2023-11492 COMPLAINANT, Docket No. 2023A-11492-OMC-ROC v. Patterson Homes LLC CITATION AND COMPLAINT DBA Patterson Restoration, License Nos. 315545 RESPONDENT.

The Arizona Registrar of Contractors issues this Citation and Complaint against Patterson Homes LLC DBA Patterson Restoration (“Respondent”) under A.R.S. § 32-1154(B). If Respondent fails to answer this Citation and Complaint by February 27, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged below, 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 1. On September 14, 2017, the Registrar issued License No. 315545 to Respondent. 2. Ryan Patterson (“Patterson”) formed Respondent on January 17, 2007 as a member managed LLC with Mr. Patterson as the sole member. Exhibit 1. 3. On October 21, 2016, Patterson was removed as a member, and Jason Clonts (“Clonts”) was added as the sole member. Exhibit 2. 4. On May 1, 2017, Mr. Clonts changed the structure to a manager-managed LLC and

added Jason Clonts Enterprises LLC as a member and manager of the Respondent. Exhibit 3. 5. On July 31, 2017, Mr. Clonts removed Jason Clonts Enterprises LLC as a member and manager of Respondent. Exhibit 4. 6. On August 23, 2017, Respondent submitted an application to the Registrar listing Mr. Clonts as the sole member, manager, and qualifying party of Respondent. Exhibit 5. 7. On September 14, 2017, the Registrar issued Respondent its license. 8. On October 17, 2017, just one month after the license was issued, The P.H. 2017 Trust (“Trust”) was added as a member and manager of Respondent. Exhibit 6. 9. Mr. Patterson is the trustor and trustee of the Trust. Exhibits 7-9. 10. Mr. Patterson is the CEO of Respondent. Exhibit 10. 11. Upon information and belief, the Trust is more than a 25% owner of the stock or beneficial interest in Respondent. 12. Upon information and belief, Mr. Patterson is a beneficial owner of at least 25% interest in Respondent. 13. An owner of the beneficial interest is one who either exercises substantial control over an entity, or owns or controls at least 25% of the ownership interests of the entity. See 31 U.S.C.A. § 5336. 14. Mr. Patterson is a person named on Respondent’s license. A.R.S. §§ 32-1101(a)(6), 32-1122(B). 15. On September 9, 2021, the United States charged Mr. Patterson with several counts of tax evasion. Exhibit 11. 16. On September 23, 2022, Mr. Patterson was convicted of all charges. Exhibit 12. 17. On March 30, 2023, the court sentenced Mr. Patterson to 20 months in prison, and three years of supervised release. Exhibit 13. 18. As part of the conditions of supervised release, Mr. Patterson is prohibited from “making major purchases, incurring new financial obligations, or entering into any financial

contracts over $5,000 without the prior approval of the probation officer.” 19. Mr. Patterson was charged with utilizing his other contracting companies, including Legendary Plumbing, Arizona Restoration Experts, and Patterson Remodeling, to evade hundreds of thousands of dollars in liability from 2014 to 2017. Exhibits 14-15. 20. On August 31, 2023, Respondent renewed its license. 21. Had the Registrar known that the Trust was a member and manager of Respondent, it would not have renewed the license until it had received updated applications regarding the ownership and management of Respondent. 22. Had the Registrar known that Mr. Patterson was then in fact a named person on the license as a manager and beneficial owner of Respondent, it would not have renewed the license. ALLEGED VIOLATIONS

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:

Charge 1: A.R.S. § 32-1154(A) – The holder of a license or any person listed on a license pursuant to this chapter may not commit any of the following acts or omissions: (7) Conviction of a felony. The conduct and circumstances set forth in Paragraphs 8-20 above constitute a violation of this section. Mr. Patterson is a person named on Respondent’s license and has recently been convicted of a felony. Charge 2: A.R.S. § 32-1154(A) – The holder of a license or any person listed on a license pursuant to this chapter may not commit any of the following acts or omissions:

(12) Failure in any material respect to comply with this chapter. Specifically, A.R.S. § 32-1122(B) To obtain, renew or maintain a license under this chapter, the applicant or licensee shall: 1. Submit to the registrar of contractors a verified application on forms that are prescribed by the registrar of contractors and that contain the following information: (d). If the applicant is a limited liability company, the names and addresses of all of the following, as applicable: (if the applicant is a manager-managed limited liability company, all managers… (iii) All owners of twenty-five percent or more of the stock or beneficial interest. ** 4. Notify the registrar of any change in the information required by this section within thirty days after the change occurs. The conduct and circumstances set forth in Paragraphs 1-14, and 20-22 above constitute a violation of this section. Respondent has failed to provide the Registrar with forms containing all of the managers and beneficial owners of Respondent, after it changed its ownership and management. Charge 3: A.R.S. § 32-1154(A) – The holder of a license or any person listed 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. The conduct and circumstances set forth in Paragraphs 1-22 above constitute a violation of this section. Had the Registrar known that Respondent’s management and beneficial ownership had changed, and included Patterson, it would not have renewed Respondent’s license.

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).

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. 2023-11492.

How to File a Written Answer: Respondent’s written answer may be submitted in the

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 February 27, 2024. 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 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 February 12, 2024. /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, on February 12, 2024, 2024 to:

Respondent Certified Mail No: [number redacted]

Patterson Homes LLC DBA Patterson Restoration 16424 N 91st St Scottsdale, AZ 85215

Copy mailed by USPS First Class mail this same date to: Patterson Homes LLC DBA Patterson Restoration

16424 N 91st St Scottsdale, AZ 85215

Copy electronically mailed on the same date to:

Respondent’s email address of record Registrar’s Counsel Assistant Attorney General [email redacted]

EXHIBIT 1 EXHIBIT 2 EXHIBIT 3 EXHIBIT 4 EXHIBIT 5 EXHIBIT 6 EXHIBIT 7 EXHIBIT 8 EXHIBIT 9 EXHIBIT 10 EXHIBIT 11 EXHIBIT 12 EXHIBIT 13 EXHIBIT 14 EXHIBIT 15 2/20/24, 1:50 PM State of Arizona Mail - Request for Extension - Case No. 2023-11492

Answers - AZROC <[email redacted]>

Request for Extension - Case No. 2023-11492 messages

Andrew DiCarlo <[email redacted]> Tue, Feb 20, 2024 at 1:31 PM To: Legal New Mail - AZROC <[email redacted]> Cc: [email redacted]

To Whom it may concern,

I am sending this email regarding the above-captioned matter on behalf of Respondent Patterson Homes LLC. I am requesting a five (5) day extension for Respondent's Answer to the Citation and Complaint currently scheduled for February 27, 2024.

I am requesting the above extension because DiCarlo Law PLC, and myself, were only recently retained on this and another matter (which I have filed an additional request for extension simultaneously herewith) which are due within a short time. Additionally, previously scheduled matters and my unforeseen bout of sickness have necessitated the above request. Please let me know if a more formal request is required.

Thank you in advance.

-- Andrew R. DiCarlo, Esq. Attorney at Law DICARLO LAW, PLC 15029 N. Thompson Peak Pkwy Suite B-111, #406 Scottsdale, Arizona 85260 Email: [email redacted] Telephone: (602) 341-5154

NOTICE: The information contained in this electronic mail transmission is intended by DiCarlo Law PLC for the use of the named individual or entity to which it is directed and may contain information that is privileged or otherwise confidential. It is not intended for transmission to, or receipt by, anyone other than the named addressee or a person authorized to deliver it to the named addressee). It should not be copied or forwarded to any unauthorized persons. If you have received this electronic mail transmission in error, please delete it from your system without copying or forwarding it, and notify the sender of the error by reply email or by calling DiCarlo Law PLC at 602-341-5154, so that our address record can be corrected.

Answers - AZROC <[email redacted]> Tue, Feb 20, 2024 at 1:49 PM To: Andrew DiCarlo <[email redacted]>

Good afternoon. We cannot grant extensions to the answer date. You may file an answer within the requisite timeframe and then supplement your answer at a later date.

Thank you, Legal Department Arizona Registrar of Contractors [Quoted text hidden] -- Thank you.

Registrar of Contractors Legal Department

https://mail.google.com/mail/b/AEoRXRS9trmIt1DqQ9LfeN7BxyYgPEAF8i2Ixrwc7x7LpMojCqjI/u/0/?ik=581c53cf5c&view=pt&search=all&permthid=th… 1/1 Received 2/27/2024 ROC Legal

LANG THAL KING & HANSON PC 6730 N. SCOTTSDALE RD., SUITE 101 SCOTTSDALE, ARIZONA 85253 TELEPHONE (480) 534-4900 Please e-serve filings on: [email redacted] Please note new firm name and email addresses JAMES N. HANSON, #029091 [email redacted] (not for e-service)

Attorneys for Respondent Patterson Homes LLC DBA Patterson Restoration ARIZONA REGISTRAR OF CONTRACTORS Arizona Registrar of Contractors, Case No.: 2023-11492 COMPLAINANT, WRITTEN ANSWER TO CITATION AND COMPLAINT v. Patterson Homes LLC DBA Patterson Restoration, License Nos. 315545 RESPONDENT. Respondent Patterson Homes LLC makes no admission regarding the underlying allegations or charged violations in the February 12, 2024 Citation and Complaint. Patterson Homes LLC denies that its license should be either suspended or revoked, because Patterson Homes LLC desires to remedy any issues, address any concerns, and be fully compliant with every applicable regulation. The February 12, 2024 Citation and Complaint identifies issues with the company’s namesake, Ryan Patterson. While Patterson Homes LLC acknowledges the Registrar’s concern with Mr. Patterson individually and personally, Patterson Homes LLC intends in its defense to rely on the separability of the entity as a licensee from those persons who might give rise to the Registrar’s concern. Cf. A.A.C. R4-9-101(B) (“Licensee means a business entity (sole proprietor, partnership, limited liability company or corporation) to which a license is issued and not the individuals comprising the ownership or management of the licensee, except for a sole proprietor. The license is held by the licensee and not the qualifying party.”). Received 2/27/2024 ROC Legal

Accordingly, Patterson Homes LLC requests that a hearing be set at the Office of Administrative Hearings. Patterson Homes LLC asserts that the Registrar of Contractors, to the extent that it seeks to impose discipline on Patterson Homes LLC’s license, bears the burden of persuasion at that hearing. A.R.S. § 41-1092.07(G)(2) and -(3). Finally, Patterson Homes LLC asserts that this matter involves “a licensing decision,” as that term is used in A.R.S. § 41-1092.08(I); Patterson Homes LLC reserves its rights to seek fees as needed under A.R.S. § 12-348(A)(2). Patterson Homes LLC further reserves all rights to seek a judicial review of any final administrative decision via a trial de novo under A.R.S. § 12-910. That have been said, Patterson Homes LLC re-affirms its desire to be in full compliance and hopes to work with the Registrar cooperatively to resolve this case. DATED this 27th day of February, 2024. LANG THAL KING & HANSON PC By: /s/ James N. Hanson James N. Hanson Attorney for Respondent ORIGINAL sent via e-mail this 27th day of February, 2024, to: Arizona Registrar of Contractors 1700 W. Washington Street, Ste. 105 Phoenix, AZ 85007 [email redacted] [email redacted] [email redacted] By: /s/ Amanda Smith

Received 2/27/24, 1:53 PM State of Arizona Mail - Patterson Homes LLC dba Patterson Restoration, License No. 315545 adv. Arizona Registrar of Contractor… 2/27/2024 ROC Legal

Answers - AZROC <[email redacted]>

Patterson Homes LLC dba Patterson Restoration, License No. 315545 adv. Arizona Registrar of Contractors in Case No. 2023-11492 message

Amanda Smith <[email redacted]> Tue, Feb 27, 2024 at 1:08 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: James Hanson <[email redacted]>

Good Morning,

For filing, attached is the Written Answer to the Citation and Complaint, regarding the above-referenced matter. Please contact our office if you have any questions.

Thank you,

Amanda

Amanda Smith Legal Assistant Direct: 480-534-4894 | Website | vCard 6730 N. Scottsdale Rd., Suite 101 | Scottsdale, AZ 85253 480-534-4900 NOTICE: This message and its attachments are confidential and may be attorney-client privileged. They are protected by law. If you are not the intended recipient, please destroy the message in both electronic and paper form and notify Lang Thal King & Hanson at 480-534-4900 or by email to the sender. Thank you.

Written Answer to Citation and Complaint.pdf 164K

https://mail.google.com/mail/b/AEoRXRTRCl7D6PGI9F9IXZtJwrKLxRLO8bkNRn1IbImPq69FNJfW/u/0/?ik=581c53cf5c&view=pt&search=all&permthi… 1/1 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