2024A-02335-NPC-ROC Notice of Hearing & Packet MAILED 2024-02335.pdf

2024A-02335-NPC-ROC · Registrar of Contractors · 2024-06-21

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Art Enriquez Concrete LLC, Case No. 2024-02335

COMPLAINANT, Docket No. 2024A-02335-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Troon Enterprises Inc. License No. ROC 297652,

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

HEARING INFORMATION The hearing is set for:

August 7, 2024 1:00 PM Sondra Vanella 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 March 29, 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)(10) Charge: 2 A.R.S. § 32-1183(B)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will

be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and

argument to the administrative law judge.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-

1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES

The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via

video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET

In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents

are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com.

The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT

At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated June 20, 2024.

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

Copy mailed via USPS First Class mail June 20, 2024 to:

Respondent(s) Troon Enterprises Inc. 7373 E Doubletree Ranch Rd Ste 200 Scottsdale, AZ 85258

Respondent's Attorney Edward Hermes, Esq. 1 E Washington St Ste 2700 Phoenix, AZ 85004 Complainant(s) Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340

Complainant's Attorney Megan Schandle, Esq. 6730 N Scottsdale Rd Ste 101 Scottsdale, AZ 85253 Copy sent electronically this same date to:

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

Case No. 2024-02335 /

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

February 27, 2024

Via U.S. Mail and Email

Complainant Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340

Via U.S. Mail and Email

Respondent Troon Enterprises Inc 7373 E Doubletree Ranch Rd Ste 200 Scottsdale, AZ 85258

Re: Complaint No. 2024-02335

Dear Complainant and Respondent:

The Registrar received a complaint filed against Troon Enterprises Inc for non- payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by March 5, 2024. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before March 5, 2024 and will review Respondent’s response, if one is submitted.

Please be advised that a response to the complaint is not the same as a written answer. If the Registrar issues a citation Respondent must file a written answer to that citation in accordance with A.R.S. § 32-1155.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Sincerely,

/s/Madelyn Hayes Madelyn Hayes Legal Assistant II Legal Department 1700 W Washington St. Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-02335 Art Enriquez Concrete LLC,

COMPLAINANT, v. CITATION Troon Enterprises Inc License No. ROC 297652,

RESPONDENT.

The Registrar issues this Citation to Troon Enterprises Inc (“Respondent”) under A.R.S.

§ 32-1155(A). If Respondent fails to answer this Citation by April 12, 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 February 26, 2024, Art Enriquez Concrete LLC(“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

Charge :1 A.R.S. § 32-1154(A)(10) — Failure 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 of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. Charge :2 A.R.S. § 32-1183(B)— If a subcontractor or material supplier has performed in accordance with the provisions of a construction contract, the contractor shall pay to its subcontractors or material suppliers and each subcontractor shall pay to its subcontractors or materials suppliers, within seven days of receipt by the contractor or subcontractor or each progress payment, retention release or final payment, the full amount received for such subcontractor’s work and materials supplied based on work completed or materials supplied under the subcontract. *** Any diversion by the contractor or subcontractor of payments received for work performed pursuant to a contract, or failure to reasonably account for the application or use of such payments, constitutes grounds for disciplinary action by the registrar of contractors. 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:

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

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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 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. 2024-02335. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted]

The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday.

If Respondent submits a written answer by mail, it is not filed with the Registrar until the

Registrar actually receives it.

Deadline for Filing a Written Answer: Respondent must file a written answer with the

Registrar no later than April 12, 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

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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 administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be

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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 suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated March 29, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors

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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 COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, March 29, 2024 to:

Respondent Certified Mail No: [number redacted]

Troon Enterprises Inc 7373 E Doubletree Ranch Rd Ste 200 Scottsdale, AZ 85258 Copy mailed by USPS First Class mail this same date to: Troon Enterprises Inc 7373 E Doubletree Ranch Rd Ste 200 Scottsdale, AZ 85258

Complainant Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340

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 Case No. 2024-02335 / MTH

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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 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Art Enriquez Concrete LLC, Case No. 2024-02335 COMPLAINANT, v. Troon Enterprises Inc. FINAL ADMINISTRATIVE License No. ROC 297652, DECISION AND ORDER (DEFAULT) RESPONDENT.

A Citation was issued in this matter based on a complaint filed with the Registrar of Contractors. Based upon the entire record in this matter, the following Findings of Fact,

Conclusions of Law, and Order are made:

FINDINGS OF FACT 1. The Citation and Complaint were served on Respondent by certified mail, with postage prepaid, directed to the latest address of record for Respondent as shown in the license

files of the Registrar, in accordance with A.R.S. §§ 32-1155(A) and (B).

2. Respondent did not file a timely written Answer to the Citation as required by A.R.S. § 32-1155(A).

3. More than ten days have elapsed since service of the Citation, and under A.R.S. § 32- 1155(C) Respondent’s failure to answer within the time prescribed is deemed an admission of

the acts charged in the Complaint.

CONCLUSIONS OF LAW 1. Respondent violated the provisions of A.R.S. § 32-1154(A)(10) as charged in the Citation and Complaint.

of 2 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/19 2. The Registrar has authority to suspend or revoke Respondent’s license under A.R.S. §§ 32-1154 and 32-1155.

ORDER Based on the foregoing, IT IS ORDERED that Respondent’s license be suspended effective upon the issuance of this Order, until the Registrar receives written proof that

Respondent has paid Complainant.

This Order is not subject to judicial review except for jurisdictional issues under A.R.S. §§ 41-1092.08(H) and 12-902(B).

Dated April 18, 2024. By: /s/ Mary Coyne Mary Coyne, CP Paralegal Manager Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed April 18, 2024 to: Respondent Troon Enterprises Inc. 7373 E Doubletree Ranch Rd., Ste. 200 Scottsdale, AZ 85258

Complainant Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340

Megan Schandle 6730 N. Scottsdale Rd, Suite 101 Scottsdale, AZ 85253 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. 2024-02335 / MTH

of 2 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/19 RECEIVED LEGAL 5/02/2024

Edward J. Hermes (#030529) SNELL & WILMER L.L.P. One East Washington Street Suite 2700 Phoenix, Arizona 85004-2556 Telephone: 602.382.6000 Facsimile: 602.382.6070 E-Mail: [email redacted] Attorneys for Respondent Troon Enterprises Inc. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA Art Enriquez Concrete LLC, One East Washington Street, Suite 2700

Case No. 2024-02335 Snell & Wilmer

COMPLAINANT, Phoenix, Arizona 85004-2556

MOTION TO VACATE DEFAULT LAW OFFICES

v. ORDER AND REQUEST TO 602.382.6000 L.L.P.

REINSTATE LICENSE Troon Enterprises Inc., License No. ROC 297652, RESPONDENT. Undersigned counsel, on behalf of Troon Enterprises, Inc., (“Troon Enterprises”) hereby respectfully requests that the Arizona Registrar of Contractors (“ROC”) vacate or otherwise set aside the Administrative Order of Default in this matter (the “Default Order”) and reinstate the license for Respondent Troon Enterprises, Inc. pending a full determination on the merits of Complainant’s complaint in this matter. Further, as set forth herein, undersigned counsel requests copies of the “Citation” referenced in the ROC’s orders so that Troon Enterprises, Inc. can provide a more fulsome response thereto. Undersigned counsel is authorized to accept service of the Citations. First, Troon Enterprises did not receive the Citation and Complaint by certified mail per A.R.S. § 32-1155 as referenced in the ROC’s Default Order. Upon receiving the Default Order from the ROC and learning that its license had been suspended, Troon Enterprises

4879-2705-5291 RECEIVED LEGAL 5/02/2024

hired undersigned counsel to assist in this matter and to obtain a copy of the Citation and Complaint referenced in the Default Order. Troon Enterprises respectfully requests that the Default Order be vacated so that Troon Enterprises has the opportunity to fully respond to the Citation and Complaint, and so that a decision by the ROC can be made on the merits of the Citation and Complaint rather than via default. See Richas v. Superior Court, 652 P.2d 1035, 1037 (Ariz. 1982); see also Almarez v. Superior Court, (704 P.2d 830, 832 (Ariz. Ct. App. 1985) (discussing “the law’s preference for resolution of disputes on their merits, so that any doubts should be resolved in favor of the party seeking to set aside the default judgment” (citing Hirsch v. Nat’l Van Lines, Inc., 666 P.2d 49 (Ariz. 1983); Union Oil Co. of Cal. V. Hudson Oil Co., 640 P.2d 847 (Ariz. 1982))). Second, with regard to the contention in the Default Order that Respondent violated “A.R.S. § 32-1154(A)(10) as charged in the Citation and Complaint” – Troon Enterprises One East Washington Street, Suite 2700 Snell & Wilmer

hereby responds to this contention under A.R.S. § 32-1154(A)(10) and states that Troon Phoenix, Arizona 85004-2556 LAW OFFICES

Enterprises’ license should not be further suspended pursuant to this provision because 602.382.6000 L.L.P.

Troon Enterprises was not paid by the owner for the sums relevant in this matter. A.R.S. § 32-1154(A)(10) are not applicable grounds to suspend Troon Enterprises’ license because Troon Enterprises did not receive monies as payment from the owner on this project for the particular construction work at issue here, i.e., the services of materials rendered by Complainant. See A.R.S. § 32-1154(A)(10) (“Failure 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”). Troon Enterprises requests that the Default Order in this matter be vacated, that undersigned counsel be provided a copy of the Citation and Complaint in this matter, and that Troon Enterprises be given 10 days to respond to the Citation and Complaint. In that response, Troon Enterprises can provide further information and documents to respond to the Complaint and Citation to show that Troon Enterprises was

4879-2705-5291

RECEIVED LEGAL 5/02/2024

not paid for sums the Complainant claims to be owed. Being able to provide such a response is consistent with Arizona law so that this matter can be considered and decided on the merits. Troon Enterprises respectfully requests that the Default Order and suspension be vacated to allow Troon Enterprises the opportunity to respond to the Citation and Complaint, at which time Troon Enterprises will further show that it did not receive funds from the Owner of the project for the services and/or materials that are the subject of Complainant’s Complaint. DATED this 2nd day of May, 2024. SNELL & WILMER L.L.P. By: /s/ Ed Hermes Edward J. Hermes One East Washington Street Suite 2700 One East Washington Street, Suite 2700

Phoenix, Arizona 85004-2556 Snell & Wilmer

Phoenix, Arizona 85004-2556

Attorneys for Respondent Troon Enterprises Inc. LAW OFFICES

602.382.6000 L.L.P.

COPY of the foregoing mailed this 2nd day of May, 2024 to: Arizona Registrar of Contractors Legal Department 1700 W. Washington Street, Suite 105 Phoenix AZ 85007-2812 602.542.1525 Toll Free 877.692.9762 roc.az.gov Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340 Megan Schandle 6730 N. Scottsdale Rd, Suite 101 Scottsdale, AZ 85253 By: June R. James

4879-2705-5291

RECEIVED LEGAL 5/02/2024

Legal New Mail - AZROC <[email redacted]>

Troon Enterprises Inc., License No. ROC 297652 message

James, June <[email redacted]> Thu, May 2, 2024 at 11:28 AM To: "[email redacted]" <[email redacted]> Cc: "Hermes, Edward J." <[email redacted]>

Attached, please find Motion’s to Vacate Default Order and Request to Reinstate License regarding the following cases, hard copy mailed:

1. Case No. 2024-01480 – Form Third Building Tech LLC; 2. Case No. 2024-02335 - Art Enriquez Concrete LLC; and 3. Case No. 2024-02714 – US LBM Operating Co. 3009, LLC.

June R. James (she/her/hers)

Legal Administrative Assistant to Alexa Salari | Ed Hermes | James R. Condo | Patricia Lee Refo

O: 602.382.6710 | M: 615.997.4048

[email redacted]

SNELL

& WILMER

swlaw.com | Disclaimer | LinkedIn

One East Washington Street | Suite 2700 | Phoenix, AZ 85004‑2556

attachments RECEIVED LEGAL 5/02/2024 2024 0502 - Troon - Motion to Vacate Default Order and Request to Reinstate Lic - FOR CASE NO. 2024- 01480.pdf 118K 2024 0502 - Troon - Motion to Vacate Default Order and Request to Reinstate Lic - FOR CASE NO. 2024- 02335.pdf 112K 2024 0502 - Troon - Motion to Vacate Default Order and Request to Reinstate Lic - FOR CASE NO. 2024- 02714.pdf 113K Received 5/16/2024 ROC Legal

RESPONDENT’S REPLY IN Snell & Wilmer

v. SUPPORT OF MOTION TO Phoenix, Arizona 85004-2556

VACATE DEFAULT ORDER AND LAW OFFICES

Troon Enterprises Inc., License REQUEST TO REINSTATE 602.382.6000

No. ROC 297652, LICENSE L.L.P.

RESPONDENT. Respondent Troon Enterprises, Inc. (“Respondent”) hereby replies in support of its motion to vacate the default order and to reinstate its license (the “Motion”). As set forth in the Motion, Respondent did not receive the complaint or citation by certified mail. Upon receiving a copy of the Arizona Registrar of Contractor’s Default Order in this matter, Respondent diligently engaged counsel to investigate and respond to the order. Arizona law states that matters should not be decided on technicalities and rather they should be decided on the merits. See Richas v. Superior Court, 652 P.2d 1035, 1037 (Ariz. 1982); see also Almarez v. Superi or Court, (704 P.2d 830, 832 (Ariz. Ct. App. 1985) (discussing “the law’s preference for resolution of disputes on their merits, so that any doubts should be resolved in favor of the party seeking to set aside the default judgment”) (citing Hirsch v. Nat’l Van Lines, Inc., 666 P.2d 49 (Ariz. 1983); Union Oil Co. of Cal. V. Hudson Oil Co., 640 P.2d 847 (Ariz. 1982))).

4891-9569-9646 Received 5/16/2024 ROC Legal

Respondent requests that the Default Order be vacated so that this matter can be heard and decided on the merits. Contrary to Respondent’s assertion, Respondent did not “cho[o]se to disregard the Complaint and Citation,” but rather it filed the Motion shortly after learning that a Complaint and Citation had been filed that led to the Default Order. Contrary to Complainant’s assertion, Troon Enterprises does dispute that it owes Complainant $79,933.00. This is precisely why Respondent requested to vacate the default order so that this matter can be heard on the merits. Complainant did not complete the work for which it is apparently alleging to be owed by Troon Enterprises. In addition to the statements in the Motion, Respondent notes that the sums Art Enriquez Concrete alleges that it is owed is for work that was not completed and for alleged charges that were rejected for non-completion. Clearly there is a dispute between the parties in this matter that should be heard on the merits. The Arizona Registrar of Contractors should vacate the Default One East Washington Street, Suite 2700 Snell & Wilmer

Order so that the parties can be heard and so that the ROC can make a decision on the Phoenix, Arizona 85004-2556 LAW OFFICES

merits. 602.382.6000 L.L.P.

DATED this 16th day of May, 2024. SNELL & WILMER L.L.P. By: /s/ Ed Hermes Edward J. Hermes One East Washington Street, Ste 2700 Phoenix, Arizona 85004-2556 Attorneys for Respondent Troon Enterprises Inc. COPY of the foregoing mailed this 16th day of May, 2024 to: Arizona Registrar of Contractors James N. Hanson Legal Department Megan N. Schandle 1700 W. Washington Street, Suite 105 LANG THAL KING & HANSON PC Phoenix AZ 85007-2812 6730 N. Scottsdale Rd., Suite 101 602.542.1525 Scottsdale, Arizona 85253 Toll Free 877.692.9762 Tele: (480) 534-4900 roc.az.gov Please e-serve filings on: [email redacted] [email redacted] (not for e-service) [email redacted] (not for e-service) Attorneys for Art Enriquez Concrete, LLC By: /s/ June R. James

4891-9569-9646

Received 5/17/24, 9:03 AM State of Arizona Mail - Case No. 2024-02335 - AEC, LLC - v Troon Enterprises, Inc. 5/16/2024 ROC Legal

Legal New Mail - AZROC <[email redacted]>

Case No. 2024-02335 - AEC, LLC - v Troon Enterprises, Inc. message

James, June <[email redacted]> Thu, May 16, 2024 at 2:23 PM To: "[email redacted]" <[email redacted]> Cc: "Hermes, Edward J." <[email redacted]>, "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]>

Attached for filing, please find Respondent’s Reply in Support of Motion to Vacate Default Order and Request to Reinstate License regarding the above-referenced matter, hard copy mailed.

June R. James (she/her/hers)

Legal Administrative Assistant to Alexa Salari | Ed Hermes | James R. Condo | Patricia Lee Refo

O: 602.382.6710 | M: 615.997.4048

[email redacted]

SNELL

& WILMER

swlaw.com | LinkedIn

One East Washington Street | Suite 2700 | Phoenix, AZ 85004‑2556

This email and any attachments may be confidential and protected by legal privilege. If you have received this message in error, please do not disclose the contents to anyone. Please notify the sender by return email and delete this email as well as any attachments from your system.

2024 0515 AEC v Troon - Respondent’s Reply In Support of Motion to Vacate Default Order and Request to Reinstate License - Case No. 2024-02335.pdf

https://mail.google.com/mail/b/AEoRXRQ0NqI6TrO8-7k5L3OTFLFdPAw11tNbyO136KgxI3WCA5Bu/u/0/?ik=d3afebeda9&view=pt&search=all&permt… 1/2 Received 5/17/24, 9:03 AM State of Arizona Mail - Case No. 2024-02335 - AEC, LLC - v Troon Enterprises, Inc. 5/16/2024 113K ROC Legal

https://mail.google.com/mail/b/AEoRXRQ0NqI6TrO8-7k5L3OTFLFdPAw11tNbyO136KgxI3WCA5Bu/u/0/?ik=d3afebeda9&view=pt&search=all&permt… 2/2 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Art Enriquez Concrete LLC, Case No. 2024-02335

COMPLAINANT, ORDER SETTING ASIDE FINAL ADMINISTRAIVE DECISION AND v. ORDER (DEFAULT) Troon Enterprises Inc, AND License No. ROC 297652, ORDER SETTING HEARING RESPONDENT.

After a review of the file and record, Respondent’s request to set aside the Registrar’s Final Administrative Decision and Order (Default) is granted for the following reasons: BACKGROUND On February 26, 2024, the Registrar received a complaint against Respondent. On February 27, 2024, the Registrar issued a Notice of No-Pay Complaint to Respondent. Respondent did not file a Response. On March 29, 2024, the Registrar issued a Citation to Respondent for alleged violations of A.R.S. § 32-1154(A)(10) and A.R.S. § 32-1183(B). The Citation directed Respondent to file a written Answer by April 12, 2024. The Registrar mailed the Citation via certified mail to Respondent’s address of record. Since the Registrar did not receive an Answer after issuing the Citation, on April 18, 2024, it issued a Final Administrative Decision and Order (Default). The Default Order suspended Respondent’s license beginning on April 18, 2024, and until the Registrar received written proof that Respondent has paid Complainant $79,933.00. On May 2, 2024, Respondent filed a Motion to Vacate Default Order and Request to Reinstate License.

of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St. – Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602) 542-1525 Toll Free (877) 692-9762 Lg107 4/21 Respondent contends it did not receive the Citation and Complaint by certified mail; however, USPS tracking shows it was delivered to an individual at 11:42 AM on April 1, 2024. Respondent further contends its license should not be suspended because it was not paid by the owner. The Registrar reviewed the complaint that was filed and the parties contract. The Respondent may have a meritorious defenses to the complaint. ANALYSIS Service of a Citation is fully effected by mailing a copy of the Citation and Complaint by registered mail to the licensee’s last address of record in the Registrar’s office. A.R.S. § 32- 1155(B). Service is complete five days after deposit in the mail. Failure of a licensee to respond to a Citation within ten days after service may result in a statutory admission of all acts charged in the complaint. The Registrar may accept a late Answer if it determines, in its sole discretion, that the failure to timely Answer is attributable to excusable neglect. A.R.S. § 32-1155(C). Here, the Citation was mailed to Respondent’s correct address of record on March 29, 2024 via certified and USPS first class mail. The due date for Respondent to file an Answer to the Citation was April 12, 2024. An individual accepted service of the Citation on April 1, 2024. Because Respondent failed to timely file an Answer as required under A.R.S. § 32- 1155(C), the Registrar issued a Final Administrative Decision and Order (Default) in this case. The Registrar favors resolving complaints on their merits rather than procedural technicalities. The Registrar reviewed the record to determine whether there is sufficient evidence to set aside the Final Administrative Decision and Order (Default) in this case. Here, good cause exists to set this matter for a hearing before the Office of Administrative Hearings. Once Respondent became aware that its license was suspended, it promptly sought relief. Therefore, the Registrar determines that good cause exists to set aside the Final Administrative Decision and Order (Default).

of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St. – Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602) 542-1525 Toll Free (877) 692-9762 Lg107 4/21 ORDER Based on the foregoing, Respondent’s request to set aside the Final Administrative Decision and Order (Default) is granted. IT IS FURTHER ORDERED that the discipline imposed on April 18, 2024 is quashed. IT IS FURTHER ORDERED that a hearing be scheduled in the normal course of docketing. A Notice of Hearing will be issued in due course. Dated June 10, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class Mail June 10, 2024 to: Respondent Troon Enterprises Inc 7373 E Doubletree Ranch Rd Ste 200 Scottsdale, AZ 85258

Respondent’s Attorney Edward Hermes, Esq. Snell & Wilmer LLP E Washington St Ste 2700 Phoenix, AZ 85004 Complainant Art Enriquez Concrete LLC 20102 W Medlock Dr Litchfield Park, AZ 85340 ///

///

of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St. – Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602) 542-1525 Toll Free (877) 692-9762 Lg107 4/21 Complainant’s Attorney Megan Schandle, Esq. Lang, Thal, King and Hansen PC 6730 N Scottsdale Rd Ste 101 Scottsdale, AZ 85206 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar Case No. 2024-02335

of 4 REGISTRAR OF CONTRACTORS 1700 W. Washington St. – Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602) 542-1525 Toll Free (877) 692-9762 Lg107 4/21 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