ALJDEC - Licensing
2023A-13965-NPC-ROC · Registrar of Contractors · 2024-04-06
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Goodwin Plumbing LLC,
COMPLAINANT
v.
Bonum Development & Construction, LLC
DBA: Bonum Development & Construction
License No. ROC 344755,
RESPONDENT
No. 2023A-13965-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: March 19, 2024, 1:00 P.M.
APPEARANCES: Amanda and David Goodwin, Owners/members, appeared on behalf of Complainant; no appearance was made on behalf of Respondent
ADMINISTRATIVE LAW JUDGE: Roger Geddes
EXHIBITS ADMITTED INTO EVIDENCE: Complainant’s Exhibit Nos.1-3
___________________________________________________________________
FINDINGS OF FACT
Background and Procedure
1. Bonum Development & Construction, LLC (Respondent), is the holder of License Number 344755 issued by the Registrar of Contractors (Registrar).
2. On or about December 8, 2023, Goodwin Plumbing LLC (Complainant), filed a Complaint against Respondent with the Registrar alleging that Respondent owed Complainant the sum of $44,738.31. This amount represented the total of three unpaid invoices dated between March and December 2023 for Complainant’s plumbing material and services provided to Respondent.
3. On December 29, 2023, the Registrar then issued a Citation for Alleged Violation of A.R.S. § 32-1154(A)(10) for the alleged failure by Respondent to pay monies in excess of $750.00 when due for materials or services rendered in connection with Respondent’s operations as a contractor. The Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing.
4. The Registrar issued a Notice of Hearing that set a hearing for March 19, 2024, at 1:00 P.M. The Notice of Hearing was mailed to Respondent on or about January 31, 2024, at its address of record.
5. At the hearing, Complainant appeared and presented the testimony of Amanda Goodwin, Owner/Member, and Rocky Gupta; no appearance was made on behalf of Respondent. The Tribunal received and admitted Complainant’s Exhibit Nos. 1-3; Respondent did not submit any exhibits.
6. Although the commencement of the hearing was delayed approximately 15 minutes, Respondent did not appear at any time during the hearing through an authorized officer, member, manager, employee, attorney, or any other person. Consequently, Respondent did not present any evidence at the hearing to defend against imposing potential disciplinary action against its license.
7 Amanda Goodwin testified on behalf of Complainant as herein directly relevant to the Citation that Respondent had been paid by the owner for Respondent’s portion of the work. She stated also that she incurred returned check fees relating to payments made by Respondent.
8. Rocky Gupta testified on behalf of Complainant as herein directly relevant to the Citation that he was Director of Design and Construction for Respondent’s client and that Respondent’s November 2023 application for payment to the client covered at least 90 per cent of some of Complainant’s materials and services and 100 per cent of the rest of Complainant materials and services for the Cheeba Hut project. He stated the client’s corresponding payment to Respondent was made on November 15, 2023, and that the client agreement with Respondent required Respondent’s subcontractors to be paid within seven days of payment to Respondent.
9. Administrative notice is taken of the Registrar’s public website which reflects Respondent was first issued the subject license on May 2, 2023, and indicates the license has been suspended as of at least March 28, 2024, due to the lack of a Qualifying Party. The site also presently reflects five Open cases, no Disciplined cases, and two Resolved/Settled cases.
CONCLUSIONS OF LAW
1. The Registrar has jurisdiction over this matter, pursuant to A.R.S. § 32-1101, et seq., which authorizes the Registrar to impose disciplinary sanctions against licenses for violations of A.R.S. § 32-1154.
2. The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by preponderance of the evidence. See Arizona Administrative Code Rule 2-19-119.
3. To warrant such sanctions by the Registrar, a Complainant must demonstrate by a preponderance of the evidence that Respondent violated the statutory section cited. Proof by a “preponderance” means that “the evidence is sufficient to persuade the finder of fact that the proposition is more likely true than not.” In re: Arnold and Baker Farms, 177 B.R. 648 (9th Cir. BAP (Ariz.) 1994). See also Culpepper v. State of Arizona, 187 Ariz. 431, 930 P.2d 508 (App. 1996). It is “evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” BLACK’S LAW DICTIONARY 1182 (Rev. 6th ed. 1990).
4. The suspended status of Respondent’s license does not deprive Complainant of the right to prosecute a complaint against Respondent or prevent the Registrar from determining the merits of Complainant’s complaint. See A.R.S. § 32-1154(D) (“The expiration, cancellation, suspension or revocation of a license . . . shall not deprive the registrar of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against such license, or to render a decision suspending or revoking such a license . . .”).
5. The Notice of Hearing mailed to Respondent at its address of record was reasonable and Respondent is deemed to have received notice of the hearing. A.R.S. §§ 41-1092.4 and 41-1092.05(D).
6. A.R.S. § 32-1154(A)(10) included among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license:
[f]ailure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee’s operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.
7. A.R.S. § 32-1154(A)(10). Complainant has satisfied its burden to demonstrate that Respondent has failed to pay Complainant the amount of $44.678.31 that had become due for materials or services rendered in connection with Respondent’s operations as a contractor. No evidence was presented to dispute this or any other amount.
8. In this matter, Complainant has established that Respondent’s license should be disciplined for a violation of A.R.S. § 32-1154(A)(10).
RECOMMENDED ORDER
Based on the foregoing, it is recommended that within seven (7) days of the effective date of this order, Respondent’s License Number 344755 is suspended until the Registrar receives and accepts written verification that Respondent has paid $44.678.31 to Complainant in certified funds.
It is further recommended that if and when the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $44.678.31 in certified funds, the Registrar may close this Complaint.
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, April 8, 2024.
/s/ Roger Geddes
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole
Director
Registrar of Contractors
c/o Legal Department
1700 W. Washington Street, Suite 105
Phoenix, AZ 85007
[email redacted]
Bonum Development & Construction, LLC
DBA: Bonum Development & Construction
2820 S Alma School Rd., #18-456
Chandler, AZ 85286
[email redacted]
Goodwin Plumbing LLC
[email redacted]
By: OAH Staff