2023A-13964-CHC-ROC Notice of Hearing & Packet MAILED 2023-13964.pdf

2023A-13964-CHC-ROC · Registrar of Contractors · 2024-06-14

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Janie James-High , Case No. 2023-13964

COMPLAINANT, Docket No. 2023A-13964-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Pinnacle Builders LLC License No. ROC 312965,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for: August 5, 2024 9:00 AM Amy Haley 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 May 21, 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)(3) - R4-9-108(a) Charge: 2 A.R.S. § 32-1154(A)(22)

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.

The Registrar’s assigned investigator will appear as a witness at the hearing. 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 June 14, 2024.

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

Copy mailed via USPS First Class mail June 14, 2024 to:

Respondent(s) Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315 Complainant(s) Janie James-High PO Box 2845 Prescott, AZ 86302 Complainant's Attorney William J. O'Leary, Esq. 115 Grove Ave Prescott, AZ 86301

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar Case No. 2023-13964 /

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Complainant: JANIE JAMES-HIGH PO Box Prescott, AZ 86302

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 December 13, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-13964

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for January 11, 2024 at 10:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely,

/s/ Jim Dimond #170 Jim Dimond #170, Investigator 1700 W. Washington St., Suite 105/Yavapai County Phoenix, Arizona, 85007 Phone: (602)542-1525 Office: (928)637-1463 Cell: (623)680-9585 Email: [email redacted]

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: Only investigate the items listed on the complaint form filed with the Registrar. Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: JANIE JAMES-HIGH PO Box Prescott, AZ 86302

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 January 5, 2024

Re: Complaint Number 2023-13964

Dear Complainant and Respondent: Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for January 11, 2024 at 10:00AM has been rescheduled for January 23, 2024 at 09:00 AM. If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance. Complainant: Safe access is required to any area to be inspected. Should you have any questions regarding the above, please contact me.

Sincerely,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Jobsite Inspection Notes

Case No.: 2023-13964 Investigator: Jim Dimond Inspection Date: Tuesday, January 23, 2024 Inspection Time: 09:00 AM

Complainant: JANIE JAMES- Respondent: Pinnacle Builders HIGH by phone LLC

Jeremiah High, Son, in person Ben Warner, Owner

Wendell Graber, Contractor

Not Present: Not Present:

Jobsite General Notes:

At the inspection I took pictures with my state issued Google Pixel 6pro cellphone camera and I have uploaded the pictures to the complaint document file.

I also digitally recorded the inspection on my state issued Olympus DS-30 digital audio recorder and I have uploaded the audio recording to the complaint document file.

Compliance Item: 1 - Work has not been done on the house for 3 months. Contractor has not been to the house. Foreman resigned months ago.

Investigator’s Observation: The home appears to be about 80% to 85% done. In the kitchen, most of the cabinets were installed, most of the lighting. There were no appliances and some plumbing remained.

The stairwell is not complete. Stairs are in but the finished treads and risers are not installed. No handrail is present. Wall covering is incomplete.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

Powder room needs some minor finish work and plumbing trim out.

Great room has some minor trim out left

Master Bath has minor paint touch ups, plumbing trim out left

Master suite has some trim out left (registers)

Guest bath has paint touch ups left

Walk in closet is 95% complete

Water heater base needs finished.

Landscaping is not complete, no driveway is present

The parties are in dispute regarding issues with change orders and costs however those issues are beyond ROC authority and are better served in an alternative venue.

The respondent is to complete the project in an appropriate manner.

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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C011 12/23

Complainant: JANIE JAMES-HIGH PO Box Prescott, AZ 86302

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Respondent: Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 April 4, 2024

License No. ROC 312965

Re:Complaint No. 2023-13964

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

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 Thursday, April 25, 2024.

RESTRICTIONS You may not perform or hire other contractors to perform work that is outside the scope of your license. If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS

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

Compliance Item: 1 - Work has not been done on the house for 3 months. Contractor has not been to the house. Foreman resigned months ago.

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 The stairwell is not complete. Stairs are in but the finished treads and risers are not installed. No handrail is present. Wall covering is incomplete.

Powder room needs some minor finish work and plumbing trim out.

Great room has some minor trim out left

Master Bath has minor paint touch ups, plumbing trim out left

Master suite has some trim out left (registers)

Guest bath has paint touch ups left

Walk in closet is 95% complete

Water heater base needs finished.

Landscaping is not complete, no driveway is present

The parties are in dispute regarding issues with change orders and costs however those issues are beyond ROC authority and are better served in an alternative venue.

The respondent is to complete the project in an appropriate manner.

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. Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

/s/ Jim Dimond #170 Jim Dimond #170, Investigator 1700 W. Washington St., Suite 105/Yavapai County

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Phoenix, Arizona, 85007 Phone: (602)542-1525 Office: (928)637-1463 Cell: (623)680-9585 Email: [email redacted]

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Janie James-High, Case No. 2023-13964

COMPLAINANT, v. CITATION Pinnacle Builders LLC, License No. ROC 312965,

RESPONDENT.

The Registrar issues this Citation to Pinnacle Builders LLC, (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by June 5, 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 in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On December 8, 2023, Janie James-High, (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT 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)(3) - R4-9-108(a) 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. of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :2 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. 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. 2023-13964. 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]

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 June 5, 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). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. 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

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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.

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 // Dated May 21, 2024. By: /s/ Gail Mathews Gail Mathews Legal Assistant II Legal Department Arizona Registrar of Contractors

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, May 21, 2024 to: Respondent Certified Mail No: [number redacted] Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315 Copy mailed by USPS First Class mail this same date to: Pinnacle Builders LLC 12875 E Amble Way Prescott Valley, AZ 86315

Complainant Janie James-High PO Box 2845 Prescott, AZ 86302 William J. O'Leary, Esq. 115 Grove Ave Prescott, AZ 86301

Copy sent electronically this same date to:

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

Case No. 2023-13964

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

JANIE JAMES-HIGH Mailing Address (Enter jobsite in Contract/Project section) City State Zip

PO Box 2845 Prescott Arizona 86302 Phone Number Email

[number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Bill O'Leary Street Address of Attorney City State Zip

115 Grove Ave. Prescott Arizona 86301 Phone Number of Attorney Email of Attorney

[number redacted] Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

Pinnacle Builders LLC ROC 312965 Street Address City State Zip

9300 N. Legend Hills Rd Prescott Valley Arizona 86315 Phone Number Email

[number redacted] [email redacted] Name of Person(s) Representing License

Ben Warner Contract/Project Information Contract Date Contract Amount Amount Paid

March 19, 2021 $537,446.00 $500,000.00 Date Work Started Date Work Stopped Date Work Was Completed

September 1, 2021 September 15, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

2309 Cyclorama Prescott AZ 86302 Name of Construction Site Owner Construction Site Name (if applicable)

Owner Phone Number of Construction Site Owner Email of Construction Site Owner

[email redacted] This complaint is for Abandonment I have contacted the contractor by Phone/Text;Email Have you filed a complaint in court? No

RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Has any work been corrected? No

The contract was Written All change orders were Both This project was Residential This project involved New Home

A building permit was obtained by Property Owner B2101-130 Prescott/Yavapai List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

Work has not been done on the house for 3 months. Contractor has not been to the house. Foreman resigned months ago.

Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

JANIE JAMES-HIGH \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 RESIDENTIAL CONSTRUCTION CONTRACT

THIS RESIDENTIAL CONSTRUCTION CONTRACT is made this _19th _day of March, 2021, between _Jay & Janie High ___, whose address is, PO Box 2845, Prescott, AZ 86302 (hereinafter referred to as "Owner"), and Pinnacle Builders, LLC., whose address is 12875 E Amble Way, Prescott Valley, AZ 86315 (hereinafter referred to as "Contractor"), a company duly licensed as a contractor in the State of Arizona.

SECTION ONE DESCRIPTION OF THE WORK

Contractor shall provide all construction, supervision, inspection, equipment, labor, tools, financing, and subcontracted items necessary to construct a residence at 2309 Cyclorama Dr, Prescott, AZ 86305, in accordance with the contract documents.

SECTION TWO CONTRACT PRICE

Fixed Contract

Owner agrees to pay Contractor for all costs associated with the construction of the residence, including, but not limited to labor, materials and supplies incorporated into the work. Owner also agrees to pay a fee to the Contractor that is incorporated within the purchase price.

Total: $ 537,446 Deposit: $ 15,790 Balance: $ 521,656

OWNER SPECIFICALLY ACKNOWLEDGES THAT THE COST PROVIDED BY CONTRACTOR IS JUST THAT- A FIRM BID. THE CONTRACTOR ACKNOWLEDGES THE COST IS FIXED AND WILL NOT BE ALTERED EXCEPT FOR CHANGE ORDERS.

All discounts for prompt payment shall accrue to the builder. All trade discounts, rebates and refunds and all returns from the sale of surplus materials and equipment shall be credited to the builder. If allowances are given by the Contractor, Owner shall pay for the actual costs of such allowance items, as well as receive a credit if a savings on allowances apply.

SECTION THREE INITIAL PAYMENT

Upon execution hereof, Owner shall pay Contractor an initial payment of $0. Such payment shall be credited to the Owner’s account at final payment to the Contractor.

SECTION FOUR FINAL PURCHASE

The Owner shall make final payment to the Contractor within ten (10) days after the Certificate of Occupancy, if the contract has been fully performed, and subject to the condition that final payment shall not be due until the Contractor has delivered to the Owner a complete release of all liens arising out of the contract herein, or receipts in full covering all labor, materials, and equipment for which a lien could be filed, or in the alternative, a bond satisfactory to the Owner indemnifying Owner against such liens. Final payment shall be made to the Contractor at the time of closing, at which time the Contractor will convey title to the property under a general warranty deed. Closing will be held at Land Title Guarantee Company.

Owner, by making payment, waives all claims except those arising out of:

(a) Faulty work appearing within one year after substantial completion of the residence;

(b) Work that does not comply with the contract documents;

(d) Failure of the Contractor to comply with any special guarantees or warranties required by the documents.

Contractor, by accepting final payment waives all claims except those which it has previously made in writing, and which remain unsettled at the time of acceptance.

SECTION FIVE STARTING AND COMPLETION DATES

Construction under this contract shall begin on or about the 1st day of June 2019, and shall be completed on or about the 1st day of December, 2019. Both dates are subject to Section Nine relating to delays.

SECTION SIX CONTRACT DOCUMENTS

The Contract documents upon which this agreement between Owner and Contractor is based, which contain the plans and specifications in accordance with which work is to be done, and which provide for the method of payment of the contract price, are as follows:

(a) This agreement, with supplementary agreements and conditions attached hereto;

(b) The plans and specifications, with addenda attached thereto, issued before execution of this agreement, and any amendments hereafter to be made;

(d) All change orders issued, or to be issued.

The contract documents together form the contract for the work herein described. The parties intend that the documents include provisions for all labor, materials, equipment, supplies, and other items necessary for the execution and completion of the work, and all terms and conditions of payment. The documents also include all work and procedures not expressly indicated therein necessary for properly execution of this project.

The contract documents are to be separately executed in by the Owner and Contractor. Contractor, by executing the documents, represents that it has inspected and is familiar with the work site and the local conditions under which the work is to be performed. If by inadvertence any of the contract documents are not signed, either party shall identify them and both parties shall sign them.

SECTION SEVEN RESPONSIBILITIES OF OWNER

The Owner shall timely notify Contractor of any defects in the work.

The Contractor shall indemnify and hold Owner harmless for all claims for infringement of copyright relating to the design of the residence.

Contractor is not liable for the soil conditions and/or environmental conditions in existence or encountered during construction (including mold and mildew, hydrocompactive or hydroexpansive soils).

The Owner reserves the right to let other contracts in connection with the project. Contractor shall cooperate with all other contractors and shall give them access to the work site necessary to perform their contracts so long as their work does not impede Contractor or the work. Owner shall communicate with Contractor’s subcontractors and suppliers only through Contractor.

SECTION EIGHT RESPONSIBILITIES OF CONTRACTOR

Contractor's duties and rights in connection with the project herein are as follows:

(a) Responsibility for and Supervision of Construction. Contractor shall be solely responsible for all construction under this contract, including the techniques, sequences, procedures, and means, and for coordination of all work. Contractor shall supervise and direct the work to the best of its ability, and give it all attention necessary for such proper supervision and direction.

(b) Discipline and Employment. Contractor shall maintain at all times strict discipline among its employees, and Contractor agrees not to employ any person who is unfit or without sufficient skill to perform the job for which he was employed.

(c) Compliance with Construction Laws and Regulations. Contractor shall comply with all laws and ordinances, and the rules, regulations, or orders of all public authorities relating to the performance of the work herein.

(d) Responsibility for Negligence of Employees and Subcontractors. Contractor assumes full responsibility for acts, negligence, or omissions of all of its employees on the project, for those of its subcontractors and their employees, and for those of all persons doing work under a contract with Contractor

(e) Warranty of Fitness of Equipment and Materials. Contractor represents and warrants to Owner that all equipment and materials used in the work, and made a part of the structures thereon, or placed permanently in connection therewith, will be new unless otherwise specified in the contract documents, of good quality, free of defects, and in conformity with the contract documents. It is understood between the parties hereto that all equipment and materials not so in conformity are defective.

(f) Two Year Warranty. Contractor shall warrant and guarantee the work for two years from the date of substantial completion or pursuant to a supplier’s or subcontractor’s warranty. Contractor shall perform or have performed necessary corrections to remove or correct any defects or deficiencies.

(g) Warranties for Subcontractor/Supplier Work. Contractor shall obtain the best possible warranties and/or guarantees for the Owner from subcontractors and third party manufacturers of equipment, appliances and fixtures to be incorporated into the residence.

(h) Furnishing of Samples and Shop Drawings. Contractor agrees to furnish Owner with all samples and shop drawings prepared by Contractor for Owner’s consideration and approval in order to insure that the work confirms or will conform to the specifications of the contract documents and the concepts of design called for therein. If more specific drawings are required, such as drawings from an architect or engineer, the Owner shall obtain and pay for the same.

(I) Clean-up. Contractor agrees to keep the work premises and adjoining ways free of waste material and rubbish caused by the work or that of subcontractors. Contractor further agrees to remove all such waste material and rubbish upon termination of the project, together with all tools, equipment, machinery, and surplus materials. Contractor agrees, upon terminating its work at the site, to conduct general clean-up operations, including the cleaning of all glass surfaces, paved streets and walks, steps, and interior floors and walls.

(j) Indemnity and Hold Harmless Agreement. Contractor agrees to indemnify and hold harmless Owner and Owner’s agents and employees, from and against all claims, damages, losses, and expenses, including reasonable attorneys' fees in case it shall be necessary to file an action, arising out of performance of the work herein for bodily injury, illness, or death, or for property damage, including loss of use caused in whole in part by Contractor's negligent act of omission, or that of a subcontractor, or that of anyone employed by them or for whose acts Contractor or subcontractor may be liable.

(k) Payment of Permits and License Fees. Contractor agrees to pay all permits and license fees necessary for the work.

(l) Safety Precautions and Programs. Contractor has the duty of providing for and overseeing all safety orders, precautions, and programs necessary to the reasonable safety of the work. In this connection, it shall take reasonable precautions for the safety of all work employees and other persons whom the work might affect, all work and materials incorporated in the project, and all property and improvements on the construction site and adjacent thereto, complying with all applicable laws, ordinances, rules, regulations and orders.

SECTION NINE TIME OF ESSENCE: EXTENSION OF TIME

All times stated herein or in the contract documents are of the essence hereof. The contract times may be extended by a change order for such reasonable time as Owner or Contractor may determine, when the Contractor is delayed in performance of the work by causes beyond Contractor’s control, including but not limited to changes ordered by the Owner, acts or omissions of the Owner or separate contractors employed by the Owner, hazardous conditions discovered on the site, labor disputes, fire, prolonged transportation delays, injuries, differing site

conditions, adverse weather conditions not reasonably anticipated, or other causes beyond the control of the Contractor which justify the delay.

SECTION TEN SUBCONTRACTORS

. A subcontractor, for the purposes of this contract, shall be a person with whom the Contractor has a direct contract for work at the project site. Contractor agrees not to employ a subcontractor to whom the Owner reasonably objects, nor shall the Contractor be required to hire a subcontractor to whose employment the Contractor reasonably objects. Contractor shall be responsible for the management of the subcontractors in the performance of their work, and all contracts between Contractor and subcontractors shall conform to the provisions of the contract documents, and shall incorporate in them the relevant provisions of this contract.

SECTION ELEVEN DISPUTE RESOLUTION

All claims and disputes relating to this contract shall first be mediated. The parties shall select the mediator, and if they cannot agree, then each shall select a mediator, who will then select the sole mediator. Written notice of demand for mediation shall be filed with the other party to the contract within a reasonable time after a dispute has arisen. If such dispute is not resolved by mediation, such matters shall then proceed to binding arbitration. The parties shall select he arbitrator, and if they cannot agree on the arbitrator, then each shall select an arbitrator, who will then select the sole arbitrator. Arbitration shall occur within a reasonable time after the matter has been mediated and not resolved.

SECTION TWELVE INSURANCE

(a) Contractor's Liability Insurance. Contractor agrees to keep in force during the entire period of construction on the project such liability insurance as will protect it from claims, under workmen's compensation and other employee benefit laws, for bodily injury and death, and for property damage, that may arise out of work under this contract, whether directly or indirectly by the Contractor, or directly or indirectly by its subcontractors. The minimum liability limits of such insurance shall not be less than $250,000 for comprehensive general liability (combined single limit). Such insurance shall include contractual liability insurance applicable to the Contractor's obligations under this contract. Contractor shall provide the Owner with proof of such insurance within a reasonable time after execution of this contract.

(b) Waiver of Work Site Property Damage Claims to Extent of Insurance Coverage. Owner and Contractor hereby waive all claims against each other for fire damage or damages from other perils covered by insurance provided in paragraph c of this section. Contractor agrees to obtain waivers of such claims by all subcontractors.

SECTION THIRTEEN CORRECTING WORK

When it appears to Contractor during the course of construction that any work does not conform to the provisions of the contract documents, he shall make necessary corrections so that such work will so conform, and in addition will correct any defects caused by faulty materials, equipment, or workmanship in work supervised by him or issuance of a certificate of substantial completion, or within such longer period as may be prescribed by law or as may be provided for by applicable special guaranties in the contract documents.

SECTION FOURTEEN CHANGE ORDERS

Owner reserves the right to order changes to the work in the nature of additions, deletions, or modifications to the work, without invalidating the contract, and agrees to make corresponding adjustments in the contract price and time for completion. All changes will be authorized by a written change order agreed to and signed by the Owner and Contractor. The change order will include conforming changes in the contract and completion time, and may include changes to the Contractor Fee.

Work shall be changed, and the contract price and completion time shall be modified only as set out in the written change order. The Contractor shall have no obligation to perform changed work until a written change order is signed by the parties. Any adjustment in the contract price resulting in a credit or a charge to Owner shall be determined by mutual agreement of the parties before starting the work involved in the change.

SECTION FIFTEEN TERMINATION

Contractor's Termination. Contractor may, upon ten (10) days written notice to Owner, terminate this contract before the completion date hereof, when for a period of fifteen (15) days after a progress payment is due, through no fault of Contractor, the Owner fails to issue a certificate of payment therefore or fails to make the payment. On such termination, Contractor may recover from Owner the payment for all work completed and for any loss sustained by Contractor for materials, equipment, tools, or machinery to the extent of actual loss therefor, plus loss of a reasonable profit, provided Contractor can prove such loss and damages.

Owner's Termination. Owner may, upon ten (10) days notice to Contractor, terminate this contract before the completion date hereof, and without prejudice to any other remedy Owner may have, when Contractor defaults in performance of any provision herein, or fails to carry out the construction in accordance with the provisions of the contract documents. On such termination, Owner may take possession of the work site and all materials, equipment, tool and machinery thereon, and finish the work in whatever way Owner deems expedient. If the unpaid balance on the contract price at the time of such termination exceeds the expense of finishing the

work, Owner will pay such excess to Contractor. If the expense of finishing the work exceeds the unpaid balance at the time of termination, Contractor agrees to pay the difference to Owner.

On such default by Contractor, Owner may elect not to terminate the contract, and in such event he may make good the deficiency of which the default consists, and deduct the costs from the progress payment then or to become due to Contractor.

SECTION SIXTEEN WARRANTY

There are no warranties, expressed or implied, other than those stated in this Contract.

SECTION SEVENTEEN MISCELLANEOUS PROVISIONS

Assignment. Neither the Owner nor the Contractor may assign their interest in the Contract without the written permission of the other party except as to the assignment of proceeds.

Governing Law; Severability. This Contract shall be governed by the laws of the State of Arizona. The partial or complete invalidity of any one or more provisions of this Contract shall not affect the validity or continuing force and effect of any other provision.

OWNER: CONTRACTOR: Pinnacle Builders, LLC

By: ________________________________ By: ________________________________ Owner- Jay High Ben Warner, Owner

By: ________________________________ Owner- Janie High

RECEIVED LEGAL 6/04/2024

Written Answer to Citation and Complaint

Case No. 20323-13964

Respondent Pinnacle Builders, L.L.C. hereby makes its Answer to the Citation dated May 21st , 2024 in this matter. There is good cause why its license should not be suspended or revoked under A.R.S. § 32-1155(A). Pinnacle Builders, LLC responds to the Written Directive requirements by stating the following for each charge

Charge 1: Work has continually been happening on job just not at pace owners or myself would like. This is due to contract being done prior to continued inflation and has been very difficult financially to cover these overages. We have addressed all items on investigators observations minus the Landscape/Driveway. At the time of directive we did not have a CofO and have/had been working towards it .

Charge 2; Failure to take appropriate corrective action. Upon receiving directive note I misunderstood it as it was vague in the sense that the final line said “The respondent is to complete the project in an appropriate manner.” It was also noted there is active dispute regarding signed change orders which has caused some delays. With this said we have been compliant of the Directive. However, all items in the observations could not be completed within time frame allotted. Though again, there was misunderstanding on our part of the Governing Rule and what was required and when or if we just needed to acknowledge that we were working on completing in an appropriate manner. Which has been happening. . RECEIVED LEGAL 6/04/2024

Answers - AZROC <[email redacted]>

2023-13964 message

Ben Warner <[email redacted]> Tue, Jun 4, 2024 at 8:59 PM To: [email redacted]

Attached is document regarding our written answer to citation for case 2023-13964

Ben Warner Pinnacle Builders, LLC 928-308-0852

Written Answer to Citation and Complaint-.docx 14K 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