ALJDEC - Licensing DO NOT USE
2023A-11758-CHC-ROC · Registrar of Contractors · 2024-03-07
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Georgiy Yagudayev,
COMPLAINANT,
v.
B & J Home Renovations, LLC
License No. ROC 329939,
RESPONDENT.
No. 2023A-11758-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: February 20, 2024
APPEARANCES: Complainant Georgiy Yagudayev appeared on his own behalf. Mark Saric, Esq. represented Respondent B & J Home Renovations, LLC. Branislav Fedor appeared on behalf of Respondent B & J Home Renovations, LLC. Arizona Registrar of Contractors Investigator James Carter appeared as a witness.
ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella
EXHIBITS ADMITTED INTO EVIDENCE: Respondent’s Exhibits 1, 2, 3, 4, 6, 7, 8, and 9
______________________________________________________________________
FINDINGS OF FACT
B & J Home Renovations, LLC (“Respondent”) is the holder of License Number 329939 issued by the Arizona Registrar of Contractors (“Registrar”). Branislav Fedor is Respondent’s Qualifying Party and sole Member.
On or about July 26, 2023, Georgiy Yagudayev (“Complainant”), on behalf of LS Realty Investment, LLC, contracted with Respondent for Respondent to perform specified remodel work at a home that was characterized at hearing as an “investor flip.” The house has since been sold.
On or about October 11, 2023, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to the project.
The Registrar assigned the Complaint to Investigator James Carter. After a November 2, 2023 Jobsite Inspection, Investigator Carter issued a Written Directive dated November 7, 2023, to Respondent that provided as follows:
After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on December 1, 2023.
You are directed to remedy the following violations by the appropriate means:
Compliance Item: 1 - Landscaping - Trees/plants not trimmed away from structure. Near gas meter and laundry room. Main tree in front needs to be trimmed away from roof to prevent damage/debris collecting.
Investigator’s Observation: Verified. Investigator confirmed parties had verbal agreement for Respondent to do a landscape clean up. The Respondent will need to correct this by the appropriate means.
Compliance Item: 2 - Exterior Paint is deteriorated at the walls
Investigator’s Observation: Verified. Investigator observed paint peeling on north wall The Respondent will need to correct this by the appropriate means.
Compliance Item: 3 - Need to Caulk/Seal/Repair cracks, gaps and openings at the exterior of home
Investigator’s Observation: Verified. Investigator observed area that were not caulked prior to the home being painted. Primarily on the north wall.
The Respondent will need to correct this by the appropriate means.
Compliance Item: 4 - Per contract Gc to fix Trim and Soffit panels., but section are missing in various locations of the home
Investigator’s Observation: Verified. Investigator observed the north east corner soffit on the exterior of the home had not been repaired per the contract. The Respondent will need to correct this by the appropriate means.
Compliance Item: 7 - Electricals is not wired properly at the property, improper wiring installation and double tapped breakers
Investigator’s Observation: Unable to verify however a permit was not pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 8 - A non-professional wiring installation was done at he property, loose wiring in attic and kitchen
Investigator’s Observation: Unable to verify however a permit was not pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 9 - Weatherproof enclosures are needed at the outdoor outlets
Investigator’s Observation: Unable to verify however a permit was not pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 10 - Three prongs outlets have been installed at the two=wire system (outlets are not properly grounded)
Investigator’s Observation: Verified. Inspector tested at least one outlet in each room where a three prong had been installed. All showed improper grounding. The Respondent will need to correct this by the appropriate means.
Compliance Item: 13 - GFCI protection is not installed at some of the currently required locations as was required by scope of work
Investigator’s Observation: Investigator observed GFCI outlets in all location required and all were operating properly, however a permit was not pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 15 - Patio lock is inoperative
Investigator’s Observation: Verified. Investigator obverse the patio door latch not making contact with the hook to lock. The Respondent will need to correct this by the appropriate means.
Compliance Item: 16 - Screws are missing at various locations from new hinges on door
Investigator’s Observation: Verified. Investigator observed screws missing from all door hinges .The Respondent will need to correct this by the appropriate means.
Compliance Item: 17 - New Side Door was installed and missing door sweep
Investigator’s Observation: Verified. The Respondent will need to correct this by the appropriate means.
Compliance Item: 18 - New Closet Doors Guides Need Service
Investigator’s Observation: Verified. Investigator observed the closet door in room #2 being off the tracks. The Respondent will need to correct this by the appropriate means.
Compliance Item: 19 - Master Bedroom Windows Needs Service to Lock
Properly
Investigator’s Observation: Verified. Per contract Respondent was to replace all locks. The Respondent will need to correct this by the appropriate means.
Compliance Item: 20 - Unprofessional repair/patching in the interior of drywall of home
Investigator’s Observation: Verified. Investigator observed cracking and poor texture through out the home. The Respondent will need to correct this by the appropriate means.
Compliance Item: 21 - Moisture and Flooding/Leak from a plumbing leak at interior walls
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 22 - Laundry/Utility Room was never painted as noted part of scope of work/contract
Investigator’s Observation: This is common industry practice and does not constitute poor workmanship.
Compliance Item: 25 - Drains - Improperly Installed waste lines were observed at the kitchen sink
Investigator’s Observation: Verified. Investigator observed flex pipes used as drain pipes. The Respondent will need to correct this by the appropriate means.
Compliance Item: 28 - Under Kitchen Sink - Garbage Disposal: no high loop installed at the drain hose
Investigator’s Observation: Verified. Investigator observed that there was no high loop installed. The Respondent will need to correct this by the appropriate means.
Compliance Item: 29 - Both Bathrooms sinks/drains leaking and were improperly installed.
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 30 - Both Hot/Cold were reversed.
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 33 - Hot/Cold reversed in hall bath,
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 34 - Master Bath valve is leaks and drain is clogged in the Master bathroom
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 35 - Hall Bath Toilet line is not connected correctly and is leaking, wet drywall and water damaged
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
ITEMS NOT REQUIRING CORRECTION
The following complaint items require no action by the Respondent:
Compliance Item: 5 - Plumbing Pipes leaking at the property, flooding bathroom and into living room. Damaged new flooring, new kitchen cabinets, baseboards, drywall and walls and bathroom tile floors
Investigator’s Observation: Investigator was unable to confirm any leak due to the water being shut off to the property and Complainant was unable to turn it back on. However a permit was never pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 6 - Hose bibs at the property are missing the required anti-siphon fittings
Investigator’s Observation: Hose bib was stamped with Anti-siphon stamp. No correction is required by the Respondent.
Compliance Item: 11 - All outlets and switches were replaced as part of the contract and done so incorrectly
Investigator’s Observation: Unable to verify however a permit was not pulled with the local municipality. The Respondent will obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.
Compliance Item: 12 - Missing Light Globes from outlets
Investigator’s Observation: This was not on the original contract or oral change orders provided by Respondent
Compliance Item: 14 - Weatherstripping missing at Utility door
Investigator’s Observation: Not on original contract or on verbal change orders. No correction is required by the Respondent.
Compliance Item: 23 - Floors are peeling due to flooding in the kitchen Area
Investigator’s Observation: Unverified. There was some staining on the baseboard that was consistent with water exposure however Investigator did not observe any damaged flooring.
Compliance Item: 24 - Exposed/Unfinished wood beneath the countertop is a splinter hazard and should be sealed
Investigator’s Observation: This is common industry practice and doe not constitute poor workmanship.
Compliance Item: 26 - The new dishwasher needs repairs/maintenance.
Investigator’s Observation: This is an issue with the appliance itself, not a workmanship issue with installation. The ROC has no jurisdiction over appliance manufacturers.
Compliance Item: 27 - Also dishwasher is not secured to the counter/cabinets
Investigator’s Observation: Dishwasher was supplied by the Complainant and mounting brackets were missing. Respondent informed Complainant they were missing.
Compliance Item: 31 - Not professional installed;
Investigator’s Observation: This is a general statement and does not implicate a specific workmanship issue. It therefore and cannot be evaluated by the ROC.
Compliance Item: 32 - Numbers defects were found at the tubs and showers.
Investigator’s Observation: The Complainant provided no evidence to support this allegation. No correction is required by the Respondent.
All errors in original.
Investigator Carter contacted the City of Phoenix to inquire whether permits were required for certain aspects of Respondent’s work. The City informed Investigator Carter that permits were required for Written Directive item numbers 7, 8, 9, 11, 21, 29, 30, 33, 34, and 35.
On or about November 28, 2023, Respondent emailed Investigator Carter to request that the Written Directive be amended to remove the requirement for obtaining permits. Investigator Carter declined to do so.
Also on November 28, 2023, Complainant emailed Investigator Carter to inform him that Respondent had only performed corrective work on three days of the Written Directive period.
Respondent further emailed Investigator Carter to inform him that an appointment with the City could not be scheduled until December 5, 2023, after the expiration of the Written Directive. Respondent acknowledged to Investigator Carter that the City advised Respondent that “because he touched the electrical, he is responsible for all [of it].”
On December 7, 2023, Investigator Carter conducted a Compliance Jobsite Inspection. Investigator Carter’s Compliance Jobsite General Notes state the following:
Compliance Findings:
Compliance Item: 2 - Exterior Paint is deteriorated at the walls
Investigator’s Observation: This was not started or completed.
Compliance Item: 3 - Need to Caulk/Seal/Repair cracks, gaps and openings at the exterior of home
Investigator’s Observation: This was not started or completed
Compliance Item: 4 - Per contract GC to fix Trim and Soffit panels., but section are missing in various locations of the home
Investigator’s Observation: This was not started or completed
Compliance Item: 7 - Electricals is not wired properly at the property, improper wiring installation and double tapped breakers
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality.
Compliance Item: 8 - A non-professional wiring installation was done at he property, loose wiring in attic and kitchen
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality.
Compliance Item: 9 - Weatherproof enclosures are needed at the outdoor outlets
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality.
Compliance Item: 10 - Three prongs outlets have been installed at the two=wire system (outlets are not properly grounded)
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 13 - GFCI protection is not installed at some of the currently required locations as was required by scope of work
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 15 - Patio lock is inoperative
Investigator’s Observation: Complainant advised that this had been correct however it was still not working at the time of the CJSI
Compliance Item: 16 - Screws are missing at various locations from new hinges on door
Investigator’s Observation: This was not started or completed
Compliance Item: 17 - New Side Door was installed and missing door sweep
Investigator’s Observation: This was not started or completed
Compliance Item: 20 - Unprofessional repair/patching in the interior of drywall of home
Investigator’s Observation: This was not started or completed
Compliance Item: 21 - Moisture and Flooding/Leak from a plumbing leak at interior walls
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality.
Compliance Item: 22 - Laundry/Utility Room was never painted as noted part of scope of work/contract
Investigator’s Observation: This was not started or completed
Compliance Item: 25 - Drains - Improperly Installed waste lines were observed at the kitchen sink
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 28 - Under Kitchen Sink - Garbage Disposal: no high loop installed at the drain hose
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 29 - Both Bathrooms sinks/drains leaking and were improperly installed.
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality.
Compliance Item: 30 - Both Hot/Cold were reversed.
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 33 - Hot/Cold reversed in hall bath,
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 34 - Master Bath valve is leaks and drain is clogged in the Master bathroom
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Compliance Item: 35 - Hall Bath Toilet line is not connected correctly and is leaking, wet drywall and water damaged
Investigator’s Observation: Respondent had not begun repairs nor had he obtained a permit through the local municipality
Note: Respondent contacted the Investigator on or around 11/27/2023 requesting that I reconsider my directive for the permits because it was going to require way to much work and money and it was not on his original contract. I denied his request and told him that as a licensed contractor he should have known permits were required and as soon as he touched the work he was responsible for permits. He then said he had not gotten permits as of yet because he needed an appointment and he could not get one until 12/05/2023. I advised that the due date on the directive was 12/01/2023. He contacted me again on or around 12/04/2023 saying the city told him he did not need a permit for the plumbing because all he did was replace fixtures. I found evidence that fixtures were moved which would require a permit. He did say that the city told him he was responsible for all the wiring upgrades to the home since he touched it he “owned” it. He advised me that he would not be present for the CJSI
All errors in original.
Thereafter, Investigator Carter forwarded the Complaint to the Registrar’s Legal Department. The Registrar issued a Citation against Respondent charging possible violations of A.R.S. § 32-1154(A)(2)(b), A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(A), and A.R.S. § 32-1154(A)(22).
Investigator Carter testified consistently with the findings contained in his Jobsite Inspection Notes, the Written Directive, and his Compliance Jobsite General Notes. Investigator Carter testified that the Written Directive was specific as to the need to obtain permits and pass City inspections. Investigator Carter further testified regarding the plumbing, specifically, that there were a number of pipes not compliant with code, that the plumbing was moved in the master bathroom as the sink was relocated, and drain lines had been moved. Consequently, a plumbing permit was required. Investigator Carter was clear in his testimony and in the Written Directive that Respondent was not ordered to repair any leaks and any potential resulting damage.
Complainant testified that Respondent performed all the plumbing work, as well as demolition, and tile installation. Complainant further testified that Respondent did not perform the corrective work as required by the Written Directive. Complainant asserted that Respondent “cost him a loss.” Complainant indicated to Respondent that he was going to file an insurance claim to recoup his “holding costs,” however, did not do so.
Branislav Fedor testified regarding the leak, the cause of the leak, and what work Respondent performed to repair the leak. Mr. Fedor referenced several photographs during his testimony depicting work performed in the hall and master bathrooms. Mr. Fedor testified that he “focused on plumbing, opened walls, and found leaks,” “left cosmetic stuff to the end,” and that only minor items were not completed on the Written Directive. Mr. Fedor testified that he fixed the leaks notwithstanding that it was not required by the Written Directive, “because it was the major issue.”
Mr. Fedor also referenced email correspondence with Investigator Carter in which he informed Investigator Carter that the City advised him that he did not need a plumbing permit based upon what he told the City, specifically, that he “did not move or add any new plumbing line in this project . . .” However, Mr. Fedor obtained that information based upon his own avowals to the City. Mr. Fedor testified that he replaced “old with new” and therefore, was not required to obtain a plumbing permit.
Mr. Fedor admitted that Respondent was required to obtain an electrical permit and failed to do so.
The parties spent considerable time at hearing addressing leaks that occurred and resultant damage. However, Investigator Carter was unable to confirm any leak and did not order Respondent to perform any corrective work regarding a leak. Respondent was ordered to “obtain a permit, correct any deficiencies required by the county/city, and pass final permit inspection.”
Administrative notice is taken of Respondent’s prior License record on March 1, 2024. Such prior License record reflects that Respondent’s License Number 329939 was first issued on July 28, 2020, and is active. Such prior License record also reflects that there is only the instant open complaint, no resolved/settled complaints, and no discipline against Respondent’s license.
CONCLUSIONS OF LAW
This matter lies within the Registrar’s jurisdiction.
Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”
The evidence established that Respondent failed to obtain the required permits for the project. Respondent admittedly failed to obtain an electrical permit. Regarding whether a plumbing permit was required, Investigator Carter’s credible testimony established the need for a plumbing permit. Respondent’s assertion that the City advised Respondent that a plumbing permit was not required was based solely on the information provided to the City by Mr. Fedor himself, and Respondent did not provide the Tribunal with any documentation from the City establishing such assertion. Therefore, Complainant established that Respondent disregarded a building code of this state or any political subdivision of this state in a material respect that was prejudicial to Complainant, in violation of A.R.S. § 32-1154(A)(2)(b).
The evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent did not complete the project in a workmanlike manner in violation of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(A).
The evidence established that Respondent did not complete the corrective work following the Written Directive being issued and that valid justification for such failure did not exist. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a Written Directive from the Registrar in violation of A.R.S. § 32-1154(A)(22).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall suspend Respondent’s License Number 329939 for a period of five (5) days.
It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to A.R.S. § 32-1154(E).
It is further recommended that if Respondent fails to pay the entire amount of the civil penalty on or before thirty (30) days following the effective date of the Registrar’s final order, the Registrar revoke Respondent’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in A.R.S. § 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.
Done this day, March 7, 2024.
/s/ Sondra J. Vanella
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
Tom Cole
Registrar of Contractors
c/o Legal Department
1700 W. Washington Street, Suite 105
Phoenix, AZ 85007
[email redacted]
B&J Home Renovations LLC
Resolvere Law PLLC
3101 N. Central Ave., Suite 850
Phoenix, AZ 85012
[email redacted]
Georgiy Yagudayev
35713 N 32nd Ave
PHOENIX, AZ 85086
[email redacted]
James Carter
[email redacted]
By: OAH Staff