2024A-02551-CHC-ROC Notice of Hearing & Packet MAILED.pdf

2024A-02551-CHC-ROC · Registrar of Contractors · 2024-07-08

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Michael Zamora, Case No. 2024-02551 COMPLAINANT, Docket No. 2024A-02551-CHC-ROC v. NOTICE OF HEARING ON The Morgan Group Properties LLC CONTESTED CASE DBA: The Morgan Group Properties License No. ROC 338264,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for: August 15, 2024 1:00 PM Adam Stone Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on May 31, 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 July 8, 2024.

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

Copy mailed via USPS First Class mail July 8, 2024 to:

Respondent(s) The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr. Chandler, AZ 85286 Complainant(s) Michael Zamora 2020 S El Camino Drive Tempe, AZ 85282 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. 2024-02551 /

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: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Respondent: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 March 5, 2024

Re: Complaint No. 2024-02551

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for Monday, March 25, 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. 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

Cc: File Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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.

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 12/23 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 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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.

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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C017 4/21 Respondent: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C017 4/21 March 25, 2024

Dismissal Letter Re: Complaint No. 2024-02551;

Dear Complainant:

The Registrar received and investigated your complaint. Although your complaint alleges both poor workmanship and a financial/contractual dispute with a licensed contractor, there is insufficient grounds for discipline under A.R.S. § 32-1154(A). Both parties understand there are outstanding punch list items that need to be completed. These items are normally addressed upon completion of the project and are not appropriate for a corrective order from the Registrar at this time. Based on the ongoing financial dispute between the parties and premature allegations of poor workmanship, the Registrar is declining to exercise its sole discretion under A.R.S. § 32-1155(A) to issue a citation in this matter. The complaint is hereby dismissed.

Please understand that nothing in this letter is intended to prevent you from seeking relief in another forum.

Sincerely,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C017 4/21 Jobsite Inspection Notes

Case No.: 2024-02551 Investigator: Doug Barrett Inspection Date: Monday, March 25, 2024 Inspection Time: 10:00 AM

Complainant: MICHAEL Respondent: The Morgan Group ZAMORA Properties LLC Not Present: Not Present:

Jobsite General Notes: Both parties were present, including Scott Morgan from the Respondent. I discussed expectations versus minimum workmanship standards with the parties, including the fact that construction inherently by nature is not perfect.

Compliance Item: 1 - PAINT: Numerous paint touch up areas are "blue tapped" & has been shown to contractor. Investigator’s Observation: Verified. Several areas marked with blue tape were within standards. The following observed areas require correction: Spot in paint above slider in Arizona room. Paint touch up at laundry room door strike plate. Paint the wrong sheen under kitchen cabinet to the right of the range. Paint the wrong sheen in the kitchen pantry at light switch. Nail hole at the top left corner trim to the right of fireplace. Paint glob at left corner of the fireplace mantle. Paint drip/smear below the switches at front door. Poor texture/paint to the right of master bath tub. Missing paint inside master bath linen closet. Missing paint at repaired P-trap and stucco by exterior AC units.

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

Contractor should correct by appropriate means. 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.

Compliance Item: 2 - HVAC AHU 2 STAGE WIRING: 2 units not properly wired for 2 stage use and efficiency Investigator’s Observation: Verified. The two stage units are wired in single stage. The Complainant and Respondent agreed they needed correction. Contractor should correct by appropriate means. 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.

Compliance Item: 3 - HVAC AHU NOT SEALED: compressor piping into AHU not sealed. air leakage. Investigator’s Observation: Verified. I observed the air handlers in the AZ room closet and the attic. The piping and refrigerant lines were not sealed and had leaking cold air. Contractor should correct by appropriate means. 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.

Compliance Item: 4 - SEWER SMELL/SCREWS IN VENT STACK: bathroom sewer smell & drywall screws in vent stack Investigator’s Observation: Verified. I observed screws through the hall bathroom vent stack via a scope video provided by the Complainant. The sewer smell was not present during this inspection. Contractor should correct the vent stack by appropriate means. Governing Rule: Violation of any rule adopted by the

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

Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 5 - ROOF SHINGLE DEGRADATION: asphalt shingle granular degrading prematurely. Investigator’s Observation: Verified. I observed the shingles to the left of the front porch and on the left side of the valley. The shingles were cracked as if they had been folded. Both parties agreed the valley was replaced after the roof was complete and this damage was most likely from the replacement. Contractor should correct by appropriate means. 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.

ITEMS NOT REQUIRING CORRECTION:

Compliance Item: 4 - HVAC DUCT NOISE: duct work in bathroom & bedroom making crackling noise. Investigator’s Observation: Unverified. The Complainant was unable to duplicate this item during the inspection. Governing Rule: N/A

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 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 C011 12/23

Complaint #2024-02551 P 1 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 2 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 3 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 4 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 5 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 6 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 7 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 8 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 9 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 10 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 11 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 12 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 13 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 14 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 15 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 16 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 17 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 18 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 19 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 20 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 21 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 22 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 23 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 24 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 25 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 26 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 27 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 28 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 29 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 30 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 31 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 32 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 33 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 34 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 35 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 36 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 37 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 38 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 39 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 40 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 41 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 42 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 43 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 44 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 45 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 46 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 47 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 48 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 49 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 50 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 51 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 52 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 53 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 54 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 55 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 56 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 57 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 58 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 59 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 60 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 61 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 62 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 63 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 64 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 65 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 66 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

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: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

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 25, 2024

License No. ROC 338264

Re:Complaint No. 2024-02551

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 Friday, May 17, 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:

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 Paint the wrong sheen under kitchen cabinet to the right of the range. Paint the wrong sheen in the kitchen pantry at light switch. Nail hole at the top left corner trim to the right of fireplace. Paint glob at left corner of the fireplace mantle. Paint drip/smear below the switches at front door. Poor texture/paint to the right of master bath tub. Missing paint inside master bath linen closet. Missing paint at repaired P-trap and stucco by exterior AC units. Contractor should correct by appropriate means. 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 C009 12/23 Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 4 - HVAC DUCT NOISE: duct work in bathroom & bedroom making crackling noise. Investigator’s Observation: Unverified. The Complainant was unable to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 duplicate this item during the inspection. Governing Rule: N/A

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

Sincerely,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

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

C012 12/23 Respondent: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

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

C012 12/23 May 20, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-02551

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Thursday, May 23, 2024 at 11:30 AM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely,

Doug Barrett, Investigator (602) 771-6775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

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

C012 12/23 Complaint #2024-02551 P 1 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 2 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 3 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 4 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 5 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 6 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 7 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 8 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 9 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 10 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 11 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 12 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 13 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 14 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 15 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 16 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 17 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 18 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 19 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 20 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 21 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 22 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 23 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 24 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 25 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 26 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 27 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Respondent: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Case No.: 2024-02551 Investigator: Doug Barrett Inspection Date: Thursday, May 23, 2024 Inspection Time: 11:30 AM

Compliance Inspection Findings: The complainant was present for the compliance inspection but no one from the respondent was present. No work has been started or completed per the written directive that was issued on April 25, 2024 with a completion date of May 17, 2024.

Doug Barrett, Investigator (602) 771-6775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Michael Zamora, Case No. 2024-02551 COMPLAINANT, v. The Morgan Group Properties LLC CITATION DBA: The Morgan Group Properties License No. ROC 338264, RESPONDENT.

The Registrar issues this Citation to The Morgan Group Properties LLC DBA: The Morgan Group Properties (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by June 17, 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 March 1, 2024, Michael Zamora (“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.

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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 Charge 5: 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. 2024-02551. 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

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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 no later than June 17, 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 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).

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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 will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated May 31, 2024. By: /s/ Eric Ulinger Eric Ulinger 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, May 31, 2024 to:

Respondent Certified Mail No: [number redacted]

The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

Copy mailed by USPS First Class mail this same date to:

Respondent The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

Complainant Michael Zamora 2020 S El Camino Drive Tempe, AZ 85282 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. 2024-02551

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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

Printed Name Signature Date

MICHAEL ZAMORA

RCC099 12/05/18 Page 3 of 3 Wesley M. Cox Attorney at Law Direct Line: (602) 255-6057 [email redacted] Offices in: Albuquerque, New Mexico Birmingham, Alabama Detroit, Michigan Fort Lauderdale, Florida Las Vegas, Nevada Orlando, Florida Phoenix, Arizona San Diego, California

February 15, 2024

Via Email, Regular Mail & Certified Mail

Miranda Law PC c/o Daniel L. Miranda 5080 N. 40th St., Ste. 265 Phoenix, AZ 85018 Miranda Law PC c/o Daniel L. Miranda S. Val Vista Dr., Ste. A3-222 Gilbert, AZ 85296 [email redacted]

REPLY IN SUPPORT OF NOTICE OF BREACH / TERMINATION OF CONTRACT

Re: Zamora v. The Morgan Group Properties My File No.: 31358-001

Dear Daniel:

As you know, this firm represents Michael and Karen Zamora (the “Zamoras”) regarding the October 7, 2022 Construction Agreement between the Zamoras and your client, The Morgan Group (the “Agreement”). This letter serves as a Reply to your email received February 5, 2024 responding to the Zamoras’ demand letter (“Response”).

Under the terms of the Agreement, your client was hired to perform approximately $378,246.43 worth of remodeling in the Zamoras’ home located at 2020 S. El Camino Drive, Tempe, Arizona 85282 (the “Project”). The Project was to be completed by June 4, Miranda Law PC c/o Daniel L. Miranda February 15, 2024 Page 2

2023. (See Agreement at ¶ 19, enclosed as Exhibit 1.) This Reply to your Response will address the workmanship issues first, followed by monetary disputes.

Below, please see my clients’ replies to each numbered issue in your February 5, 2024 Response.

(1) Complete lien releases from The Morgan Group, as well as any and all Subcontractors and Trades that performed work on the Project provided on an AIA Document G904; i. It is standard industry practice to provide lien releases from any and all contractors that performed work on the project after they have been paid. If every contractor except the electrician has been paid, your client should be able to produce lien releases for all other contractors now, as well as for the electrician when final payment is made. This is what Mr. Zamora and Mr. Morgan had previously discussed; ii. As an alternative, the Zamoras are willing to accept a lien release from your client, a lien release from all trades that have previously filed a lien or 20-day notice, in addition to proof of payment to all other trades (e.g. invoices and matching canceled checks) showing that all subcontractors have been paid in full;

(2) Installation of all additional dimmers. The Zamoras agree that this installation is to be provided at an additional expense; it must be provided at a reasonable per unit price based upon the price of installation of previous dimmers on the Project; i. The demand letter explicitly acknowledged that this was going to be an additional expense to the Zamoras. My clients are requesting that your client install the additional dimmers at the same price paid for the previous dimmers, as well as five additional dimmers to have as spares, which would also be at their cost. Is your client refusing to do this work altogether? If so and the Zamoras have dimmers installed by an electrician, my clients would like verification that the state mandated One Year warranty, including the electrical work warranty by your client, will still be applicable and not voided. Miranda Law PC c/o Daniel L. Miranda February 15, 2024 Page 3

(3) Confirmation that any and all warranties are still in effect per the guidelines of the Arizona Registrar of Contractors and all warranty documentation will be provided to the Zamoras. See Agreement at §15; i. Considering the project is not complete yet, my clients would like to know why The Morgan Group is taking the position that the warranty timeline began December 12, 2023. Additionally, my clients would like clarification as to when warranty items can will be acknowledged and addressed for both emergency and non-emergency items;

(4) Provide the warranty card and instruction manual for: a. The single stage AC unit; b. The water heater; c. The water softener; d. Any and all thermostats; i. My understanding is that your client will provide all requested information for this item. I look forward to receiving them as my clients also need these to provide to the Federal Government and SRP in order to obtain proper rebates and refunds for these items;

(5) Fix the problems related to toilet smell and drainage; and i. My clients have had a plumber scope the piping system and record a video. The video shows multiple screws in a vent stack which will need to be removed and the vent stack replaced. Additionally, the wall will need to be repaired in order to fully address the issue of the smell. My clients are happy to provide you with the video via a share- drive at your request;

(6) Complete any and all punch list items; a. My clients’ punch list is as follows: i. Numerous areas in which paint needs to be touched up which were shown to Mr. Morgan and were blue taped. Other areas have since been found, including condensation piping; ii. The mechanical AHU units have not been fully sealed and external air gets into them. Additionally, the wall piping trim has not been installed where the pipes penetrate the wall; Miranda Law PC c/o Daniel L. Miranda February 15, 2024 Page 4

iii. Roof shingles have degraded prematurely. Those shingles will have to be replaced without damaging other roof shingles around them; iv. Two of the three HVAC units are two stage units, which enable a higher efficiency for heating and cooling. One of those units has been modified and the other has not been. The mechanical contractor said that the second unit does not have the proper wiring. Both HVAC units need to be properly modified to operate according to manufacturer specifications; v. The ductwork in the twin bathroom and in the spare bedroom is not properly sealed, and is making a cracking noise; vi. The Zamoras would like two additional boxes of the “white tile” which will be at their expense to be used for future replacement use; vii. The Zamoras would like five additional interior light fixtures and five additional exterior light fixture which will be at their expense to be used for future replacement use; viii. Ensuring that the one year warranty is still in effect in case any other items come up in the timeframe.

Regarding your dispute over the language of the Agreement and monies owed, please note that the Agreement does not base monies owed off of substantial completion, but says that “payment schedule will be due based upon completion of each trade and approved by client.” (See Exhibit 1, at ¶ 22 (emphasis added).) Furthermore, regarding your allegations of changes made to the Project even though there were no formal change orders signed, please note that the Agreement explicitly says that “such changes or modifications shall only be made in a written ‘Change Order’ which is signed and dated by all Parties.” (Id., at ¶ 16) Your Response explicitly admits that no formal change orders were signed. Lastly, please note that the only portion of the Agreement that mentions substantial completion is when it comes to curing a default after notification. (Id., at ¶ 50.) We issued the Notice of Breach to your client on January 9, 2024, and as of today, your client has not begun to cure the default, let alone work towards substantial completion of the abovementioned defaults. Please note that as of February 8, 2024, your client is now in violation of ¶ 50 of the Agreement for failing to begin to cure the abovementioned defaults. Miranda Law PC c/o Daniel L. Miranda February 15, 2024 Page 5

Even though The Morgan Group is in violation of ¶ 50 of the Agreement, my clients are willing to provide The Morgan Group with the opportunity to cure the defaults as set forth in this Reply under the condition that The Morgan Group respond promptly and begin to cure the defective work promptly. As your Response suggested, the Zamoras are happy to fix the dispute over how much money is owed after all of the work is complete per the terms of the Agreement, however, please note, The Morgan Group’s failure to complete the Project is continuing to result in a $100 per day “penalty to be reduced against [the Zamoras’] final bill.” (Id., at ¶ 22.)

Based upon the foregoing, the Zamoras are demanding that, within ten days of the date of this letter, you confirm that The Morgan Group intends to and begins to cure the defective items and complete the Project. Should The Morgan Group fail to do so, the Zamoras will be terminating the Contract. (Id., at ¶ 51.) The Zamoras will then hold The Morgan Group accountable for any additional amounts they pay another contractor to correct the work, as well as all costs and attorney’s fees required in recovering said monies. See A.R.S. §§ 12-341; 12-341.01.

I look forward to your response within ten days of this letter.

Sincerely,

TIFFANY & BOSCO, P.A.

Wesley M. Cox WMC:js Enclosures cc: Clients Wesley M. Cox Attorney at Law Direct Line: (602) 255-6057 [email redacted] Offices in: Albuquerque, New Mexico Birmingham, Alabama Detroit, Michigan Fort Lauderdale, Florida Las Vegas, Nevada Orlando, Florida Phoenix, Arizona San Diego, California

January 9, 2024

Via Email, Regular Mail & Certified Mail

The Morgan Group Properties c/o Scott Morgan 2301 S. Stearman Drive Chandler, Arizona 85286 [email redacted]

NOTICE OF BREACH / TERMINATION OF CONTRACT

Re: Zamora v. The Morgan Group Properties My File No.: 31358-001

Dear Mr. Morgan:

This firm has been retained by Michael and Karen Zamora (the “Zamoras”) regarding your/The Morgan Group Properties’ (“You” or “Morgan Group”) breach of the October 7, 2022 Construction Agreement between the Zamoras and the Morgan Group (the “Agreement”).

Pursuant to the terms of the Agreement, You were to perform approximately $378,246.43 worth of remodeling in the Zamoras’ home located at 2020 S. El Camino Drive, Tempe, Arizona 85282 (the “Project”). Under the terms of the Agreement, the Project was to be completed by June 4, 2023. (See Agreement at ¶ 19, enclosed as Exhibit 1.) Payment was to be made “upon completion of each trade and approved by [the Zamoras.]” Id. at ¶ 22. Your failure to complete the Project by June 4, 2023 results in a $100 per day “penalty to be reduced against [the Zamoras’] final bill.” Id.

To date, You assert that You are still owed $23,519.31, pursuant to three unpaid invoices. (See Invoices 5340, 5341 and 5349, enclosed as Exhibit 2.) In your email dated December 28, 2023, You demanded that You are paid before You complete the final punch list items. Your Morgan Group Properties January 9, 2024 Page 2

demand breaches the basic terms of the Agreement. (See Exhibit 1 at ¶ 22.) Per the terms of the Agreement, you are not owed that money until the Project is complete. Id.

The below items are required in order to complete the Project:

(1) Complete lien releases from You, as well as any and all Subcontractors and Trades that performed work on the Project provided on an AIA Document G904; (2) Installation of all additional dimmers. The Zamoras agree that this installation is to be provided at an additional expense; it must be provided at a reasonable per unit price based upon the price of installation of previous dimmers on the Project; (3) Confirmation that any and all warranties are still in effect per the guidelines of the Arizona Registrar of Contractors and all warranty documentation will be provided to the Zamoras. See Agreement at §15; (4) Provide the warranty card and instruction manual for: a. The single stage AC unit; b. The water heater; c. The water softener; d. Any and all thermostats; (5) Fix the problems related to toilet smell and drainage; and (6) Complete any and all punch list items.

As of today, the Project is 217 days behind schedule. Per paragraph 22 of the Agreement, the Zamoras are entitled to a reduction of their final bill in the amount of $21,700 and counting. Notwithstanding, in an attempt to move this Project along, and if you agree to complete the Project based upon the above-mentioned terms, the Zamoras are willing to limit the delay credit towards their final bill to $18,000. This is calculated via ten days in which the penalty was paused, as well as ending the penalty days on the day in which the Zamoras moved into their home – even though the Project is not yet completed. This would result in payment of $5,519.31 ($23,519.31 - $18,000) upon completion of the Project.

Based upon the foregoing, the Zamoras are demanding that, within ten days of the date of this letter, You confirm that the Project can be completed by February 7, 2024; provide a schedule establishing completion of the same, and complete the above listed items per that schedule. (See Exhibit 1 at ¶ 49-50.) Should you fail to do so, the Zamoras will be terminating the Contract. Id. at ¶ 51.

On behalf of the Zamoras, I am hereby putting You on notice of the foregoing breaches and advising that if the breaches are not cured, the Agreement will be terminated. The Zamoras will then hold you accountable for any additional amounts they pay another contractor to correct Morgan Group Properties January 9, 2024 Page 3

the work, as well as all attorney’s fees required in recovering said monies. Id. at § 8; A.R.S. § 12- 341.01.

I look forward to your response within ten days of the date of this letter.

Sincerely,

TIFFANY & BOSCO, P.A.

Wesley M. Cox

WMC:js Enclosures cc: Clients Exhibit 2 The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] Scott@tmgproperties org

INVOICE BILL TO SHIP TO INVOICE 5340 Mike Zamora Mike Zamora DATE 11/21/2023 2020 S El Camino Dr 2020 S El Camino Dr TERMS Due on receipt Tempe, AZ 85282 United States Tempe, AZ 85282 United States DUE DATE 12/12/2023

DESCRIPTION QTY RATE AMOUNT

Heating & Cooling: Uninstall current air handler at storage room. 0.50 1,700.00 850.00 Reinstall at new location at back N wall of same storage room and new lines/condensation lines. Will need new flex ducting, metal duct, and additional lines and material. Electrical: Move 2 outlets at storage room above new soffit. 0.50 550.00 275.00 Install new outlet for HVAC air handler at new location. Misc Repairs: Frame for new soffits at storage room and 0.50 1,870.00 935.00 platform for air handler. Repair as needed damage from moving air handler. Install sheetrock at all affected areas. Mud/Sand and paint to match. Includes all labor and materials. DOES NOT INCLUDE ANY REPAIRS TO STUCCO IF APPLICABLE. Inside of storage room only.

BALANCE DUE $2,060.00

Please make checks payable to The Morgan Group Properties

The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

INVOICE BILL TO SHIP TO INVOICE # 5341 Mike Zamora Mike Zamora DATE 11/21/2023 2020 S El Camino Dr 2020 S El Camino Dr DUE DATE 11/24/2023 Tempe, AZ 85282 United Tempe, AZ 85282 TERMS Due on receipt States United States

DESCRIPTION QTY RATE AMOUNT Electrical: Final Electrical per original bid/scope 1 2,500.00 2,500.00 of work...Does not include anything outside of that scope of work. Plumbing: Final Plumbing per original bid/scope 1 4,500.00 4,500.00 of work...Does not include anything outside of that scope of work. Heating & Cooling: Final HVAC per original 1 6,250.00 6,250.00 bid/scope of work...Does not include anything outside of that scope of work. Appliances: Final Appliance Install per original 1 1,000.00 1,000.00 bid/scope of work...Does not include anything outside of that scope of work. Countertops: Final Counter Install. Paid in full 1 3,719.99 3,719.99 Painting: Final Paint per original bid/scope of 1 2,000.00 2,000.00 work...Does not include anything outside of that scope of work. Tile / Showers / Backsplashes: Final 1 275.00 275.00 Backsplash per original bid/scope of work...Does not include anything outside of that scope of work.

BALANCE DUE $20,244.99

Please make checks payable to The Morgan Group Properties The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

INVOICE BILL TO SHIP TO INVOICE # 5349 Mike Zamora Mike Zamora DATE 12/11/2023 2020 S El Camino Dr 2020 S El Camino Dr DUE DATE 12/12/2023 Tempe, AZ 85282 United Tempe, AZ 85282 TERMS Due on receipt States United States

DESCRIPTION QTY RATE AMOUNT Materials & Supplies: 2 closet rods for sliding 1 79.32 79.32 glass door, 3 new drain stop assemblies for bathrooms, 1 7 3/8" black pull cabinet hardware. Plumbing: Remove and Install 3 new drain stop 3 50.00 150.00 assemblies for bathrooms. Labor only Misc Repairs: Install 3 mirrors at bathrooms. 3 20.00 60.00 Installed 10 blinds. Labor only 10 30.00 300.00 Plumbing: Installed new cleanout for RV at 1 625.00 625.00 side/backyard. Includes all labor and material. Removed tank under sink. Ran new line into Pantry and reinstalled. Labor Only.

BALANCE DUE $1,214.32

Please make checks payable to The Morgan Group Properties Michael & Karen Zamora 2020 S. El Camino Dr. Tempe, AZ (602) 373-7131

January 2, 2024

Via Email, Certified Mail

The Morgan Group Properties c/o Scott Morgan 2301 S. Stearman Dr. Chandler, AZ 85286 (480) 861-2212 [email redacted]

Re: Your Remodel/Renovation of my house located at 2020 S. El Camino Dr., Tempe, AZ 85282

Dear Scott:

This Letter is sent in response to your December 28, 2023 email (“Email”) regarding the outstanding punch list items on my house located at 2020 S. El Camino Dr., Tempe, AZ 85282. In your Email, you mention that you will not complete the punch list items until I agree to “Settle” and pay you half of the total remaining balance, which I have calculated to be $11,759.66. Your Email goes on to request that I pay you before you complete the punch list items. The requests in your email go against the basic terms of our Contract.

The terms of the Contract specify that payment is not due until completion of each trade and approval by me. Due to the fact that you have not completed the punch list items yet, and there appears to be an issue with the toilets venting, you are not yet entitled to final payment. The Contract also specifies that you owe a $100 per day penalty for failure to complete the Remodel by June 4, 2023, to be reduced against my final bill. To date, you are more than six months behind and the Remodel is still not complete. This has resulted in more than a $18,000 credit towards my final bill.

In an attempt to move this Remodel along to completion, I am willing to place $11,759.66 into escrow while you complete the final punch list items. While that money remains in escrow, I would request the following:

(1) A final list of any and all outstanding invoices to bring the Remodel to completion; (2) Complete lien releases from you and all subcontractors that performed work on the Remodel; (3) Completion of all punch list items including, but not limited to; paint touch up, installing dimmers and rectifying the toilet issue; and (4) Confirmation that any and all warranties are still in effect.

After the Remodel is complete, I am happy to pay my final invoices per the terms we agreed upon. I look forward to hearing from you,

Sincerely,

Michael Zamora Michael & Karen Zamora 2020 S. El Camino Dr. Tempe, AZ 85282

January 2, 2024

Via Email, Certified Mail

The Morgan Group Properties c/o Scott Morgan 2301 S. Stearman Dr. Chandler, AZ 85286 (480) 861-2212 [email redacted]

Re: Your Remodel/Renovation of my house located at 2020 S. El Camino Dr., Tempe, AZ 85282

Dear Scott:

After the Remodel is complete, I am happy to pay my final invoices per the terms we agreed upon. I look forward to hearing from you,

Sincerely,

Michael Zamora Wesley M. Cox Attorney at Law Direct Line: (602) 255-6057 [email redacted] Offices in: Albuquerque, New Mexico Birmingham, Alabama Detroit, Michigan Fort Lauderdale, Florida Las Vegas, Nevada Orlando, Florida Phoenix, Arizona San Diego, California

January 9, 2024

Via Email, Regular Mail & Certified Mail

The Morgan Group Properties c/o Scott Morgan 2301 S. Stearman Drive Chandler, Arizona 85286 [email redacted]

NOTICE OF BREACH / TERMINATION OF CONTRACT

Re: Zamora v. The Morgan Group Properties My File No.: 31358-001

Dear Mr. Morgan:

demand breaches the basic terms of the Agreement. (See Exhibit 1 at ¶ 22.) Per the terms of the Agreement, you are not owed that money until the Project is complete. Id.

The below items are required in order to complete the Project:

the work, as well as all attorney’s fees required in recovering said monies. Id. at § 8; A.R.S. § 12- 341.01.

I look forward to your response within ten days of the date of this letter.

Sincerely,

TIFFANY & BOSCO, P.A.

Wesley M. Cox

WMC:js Enclosures cc: Clients Exhibit 2 The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] Scott@tmgproperties org

DESCRIPTION QTY RATE AMOUNT

BALANCE DUE $2,060.00

Please make checks payable to The Morgan Group Properties

The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

BALANCE DUE $20,244.99

Please make checks payable to The Morgan Group Properties The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

BALANCE DUE $1,214.32

Please make checks payable to The Morgan Group Properties Wesley M. Cox Attorney at Law Direct Line: (602) 255-6057 [email redacted] Offices in: Albuquerque, New Mexico Birmingham, Alabama Detroit, Michigan Fort Lauderdale, Florida Las Vegas, Nevada Orlando, Florida Phoenix, Arizona San Diego, California

February 15, 2024

Via Email, Regular Mail & Certified Mail

Miranda Law PC c/o Daniel L. Miranda 5080 N. 40th St., Ste. 265 Phoenix, AZ 85018 Miranda Law PC c/o Daniel L. Miranda S. Val Vista Dr., Ste. A3-222 Gilbert, AZ 85296 [email redacted]

REPLY IN SUPPORT OF NOTICE OF BREACH / TERMINATION OF CONTRACT

Re: Zamora v. The Morgan Group Properties My File No.: 31358-001

Dear Daniel:

2023. (See Agreement at ¶ 19, enclosed as Exhibit 1.) This Reply to your Response will address the workmanship issues first, followed by monetary disputes.

Below, please see my clients’ replies to each numbered issue in your February 5, 2024 Response.

I look forward to your response within ten days of this letter.

Sincerely,

TIFFANY & BOSCO, P.A.

Wesley M. Cox WMC:js Enclosures cc: Clients 5/23/24, 12 21 PM State of Arizona Mail Re Doug Barrett has shared a file "20240520 Compliance Jobsite Inspection Notice 2024 02551 pdf" with

Doug Barrett <[email redacted]> tt fi Re: Doug Barrett has shared a file "20240520 Compliance Jobsite Inspection Notice 2024-02551.pdf" with you messages

Scott Morgan Thu, May 23, 2024 at 5:52 AM To: Doug Barrett <[email redacted]>

Doug

I have been unable to get any of the trades back due to customer non payment and refusal to budge.

I'd like to discuss matters with you or your supervisor.

This customer has caused me major financial harm and nobody feels comfortable on his work site.

All of these items are very minor. I have tried to contact other subcontractors but cannot get them to agree to touch another contractors work.

Please advise

Sent from my Verizon, Samsung Galaxy smartphone Get Outlook for Android

From: Doug Barrett <[email redacted]> Sent: Monday, May 20, 2024 12:46:02 PM To: Subject: Doug Barre has shared a le "20240520 Compliance Jobsite Inspection Notice 2024-02551.pdf" with you

Doug has shared the following file with you: Please find a compliance jobsite inspection notice attached.

Regards,

20240520 Compliance Jobsite Inspection Notice 2024-02551.pdf

Contact Us | Egnyte.com https //mail google com/mail/u/0/?ik 7a0dd92bff&view pt&search all&permthid thread f [number redacted]&simpl msg f [number redacted] 1/2 5/23/24, 12 21 PM State of Arizona Mail Re Doug Barrett has shared a file "20240520 Compliance Jobsite Inspection Notice 2024 02551 pdf" with

Doug Barrett <[email redacted]> Thu, May 23, 2024 at 12:20 PM To: Scott Morgan com> Cc: Alex Figueroa <[email redacted]>

Good Afternoon Scott,

A compliance inspection was conducted this morning and no work has been started or completed per the written directive. At this time I will be citing the complaint to our Legal Department. In speaking with the complainant, I recommended to continue to work towards a resolution with you prior to any hearings. I have CC'd my supervisor if you have any further questions or concerns.

Regards, Doug Barrett Investigator #222 Arizona Registrar of Contractors 1700 West Washington St., Ste 105 Phoenix, AZ 85007 Phone: (602)771-6775 E-mail: [email redacted]

Fill out AZ ROC’s survey to let us know how we’re doing and how we can better serve you!

CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

[Quoted te t hidden]

https //mail google com/mail/u/0/?ik 7a0dd92bff&view pt&search all&permthid thread f [number redacted]&simpl msg f [number redacted] 2/2 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 March 5, 2024

Re: Complaint No. 2024-02551

Dear Complainant and Respondent:

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

Sincerely,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

Cc: File Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 A Guide to Jobsite Inspections

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C017 4/21 March 25, 2024

Dismissal Letter Re: Complaint No. 2024-02551;

Dear Complainant:

Please understand that nothing in this letter is intended to prevent you from seeking relief in another forum.

Sincerely,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C017 4/21 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

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 25, 2024

License No. ROC 338264

Re:Complaint No. 2024-02551

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

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

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).

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 4 - HVAC DUCT NOISE: duct work in bathroom & bedroom making crackling noise. Investigator’s Observation: Unverified. The Complainant was unable to

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 duplicate this item during the inspection. Governing Rule: N/A

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

Sincerely,

Doug Barrett Doug Barrett, Investigator 602 7716775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

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

C012 12/23 Respondent: The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

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

C012 12/23 May 20, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-02551

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Thursday, May 23, 2024 at 11:30 AM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely,

Doug Barrett, Investigator (602) 771-6775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

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

C012 12/23 Complainant: MICHAEL ZAMORA 2020 S El Camino Drive Tempe, AZ 85282

Doug Barrett, Investigator (602) 771-6775 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 12/23 Complaint #2024-02551 P 1 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 2 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 3 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 4 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 5 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 6 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 7 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 8 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 9 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 10 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 11 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 12 JSI date 03/25/2024 at 10:00AM JSI PHOTOS Complaint #2024-02551 P 13 JSI date 03/25/2024 at 10:00AM JSI 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PHOTOS Complaint #2024-02551 P 20 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 21 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 22 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 23 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 24 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 25 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 26 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Complaint #2024-02551 P 27 CJSI date 05/23/2024 at 11:30AM CJSI PHOTOS Received 6/17/24, 8:24 AM State of Arizona Mail - WRITTEN ANSWER TO CITATION AND COMPLAINT RESSPONSE TO: Citation - 2024-02551 6/17/2024 ROC Legal

Answers - AZROC <[email redacted]>

WRITTEN ANSWER TO CITATION AND COMPLAINT RESSPONSE TO: Citation - 2024-02551 message

Scott Morgan <[email redacted]> Mon, Jun 17, 2024 at 7:59 AM To: "[email redacted]" <[email redacted]>

To Whom It May Concern,

In regards to this citation/complaint there are many factors I would like to address. The biggest issues at hand are lack of response and payments in a timely manner by the Complainant. Invoices, 5341, 5340 and 5349 are all unpaid and completely ignored by the Complainant (see attached). When entering into an agreement payments are to be made on time or when there is a disagreement or something incorrect that party has 7 days to inform me of the issue.

The Complainant did not adhere to the contract nor raise concerns or disagreements in writing. This project was substantially complete December 10, 2023. Complainant moved in about that time period.

Throughout this project we worked diligently to complete on time with phenomenal quality. And while nothing is ever perfect our workmanship was top notch along with our sub trades. All the while the Complainant was onsite, stopping work, asking for changes/modifications and in our way. The entire project.

The Complainant had Flood Irrigation front and backyard numerous times per month creating delays and conditions we could not work in. We were able to find ways to make reasonable accommodations so work/trades could do all they could. Moving on to the Complaints in question I will respond to now.

Charges 1 and 5: We did complete this project in a professional and workmanlike manner, even when Complainant wasn't paying on time or paying at all. We did touch ups/punch list items constantly even when the Complainant changed the work or added to the project outside of our Agreement. On 3/28/2024 Doug Barrett had issued a Written Directive with this Complaint being DISMISSED. I was informed on approx 4/25/2024 that there was going to be a Written Directive. Once I received it I informed my Legal Counsel. With the fact the Complainant hadn't paid past due invoices and ignored me I was advised to reach out to his Counsel for a resolution to get us paid so we could get into the WARRANTY PHASE of this project and gladly handle any issues that were Valid. However, they decided to play hard ball and ignore the payment request again.

So I reached out to the Sub Trades to try and arrange these items to be addressed, but they hadn't been paid in full and therefore not able to come back to address and of these items. I diligently reached out to other trades to try to get them to come in and address and they refused due to Warranty Issues and this specific owner. With all of this being said I offered them to allow us to come address these items the week of June 17th or June 24th. That was the fastest I was able to get other trades that could address these issues to come out. They refused. At every turn this Complainant has ignored my requests or has made it nearly impossible to complete anything resembling a timely schedule due to his complete lack of respect for anyone other than himself. I am really unsure how to proceed with a customer like this. Again our workmanship and quality is nearly flawless. Not perfect, but better than standard. We have tried our best to accommodate, but he is making this more than difficult.

https://mail.google.com/mail/b/AEoRXRQmnJUwCl1H30Drg64nvPAFhuKVpJYRp7M0S8i34ODWY4Wn/u/0/?ik=581c53cf5c&view=pt&search=all&per… 1/2 Received 6/17/24, 8:24 AM State of Arizona Mail - WRITTEN ANSWER TO CITATION AND COMPLAINT RESSPONSE TO: Citation - 2024-02551 6/17/2024 ROC Legal

I do not feel my license should be suspended or revoked. I have tried to be nice, accommodating and respectful to this customer. All while being treated horrible, disrespected and not paid. I have offered to correct issues in a timely manner if allowed. This situation is complex and due to his lack of payment and responses made getting anything done within a couple of week an impossible task. I am willing and able to make these requests happen and have given them a schedule. Customers have to pay us timely!!!

Thank you very much for your time and consideration.

Scott Morgan The Morgan Group Properties Mobile: 480-861-2212

From: Eric Ulinger <[email redacted]> Sent: Friday, May 31, 2024 9:03 AM To: [email redacted] <[email redacted]>; [email redacted] <[email redacted]> Subject: Citation - 2024-02551

Attached please find an electronic copy of the citation in case 2024-02551. This document was also sent to your attention via U.S. Mail.

Please do not reply directly to this email. Any reply or response should be addressed to [email redacted]

-- Eric Ulinger Registrar of Contractors Legal Department 602-771-6756 [email redacted]

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attachments 20240531 Citation and Complaint - 2024-02551.pdf 11000K Invoice 5349.pdf 43K Invoice 5341.pdf 43K Invoice 5340.pdf 74K

https://mail.google.com/mail/b/AEoRXRQmnJUwCl1H30Drg64nvPAFhuKVpJYRp7M0S8i34ODWY4Wn/u/0/?ik=581c53cf5c&view=pt&search=all&per… 2/2 Received 6/17/2024 ROC Legal The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

DESCRIPTION QTY RATE AMOUNT

BALANCE DUE $2,060.00

Please make checks payable to The Morgan Group Properties

Received 6/17/2024 ROC Legal The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

BALANCE DUE $20,244.99

Please make checks payable to The Morgan Group Properties Received 6/17/2024 ROC Legal The Morgan Group Properties ROC#338264 2301 S Stearman Dr Chandler, AZ 85286 US +1 [number redacted] [email redacted]

BALANCE DUE $1,214.32

Please make checks payable to The Morgan Group Properties REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Michael Zamora, Case No. 2024-02551 COMPLAINANT, Docket No. 2024A-02551-CHC-ROC v. The Morgan Group Properties LLC CORRECTION OF CLERICAL DBA: The Morgan Group Properties, ERROR License No. ROC 338264, RESPONDENT.

Citation issued May 31, 2024, contains a clerical error and should be corrected as follows: On page 2, line 1, “Charge 5” shall be replaced with “Charge 2.” Dated July 8, 2024. By: /s/ Mary Coyne Mary Coyne, CP Paralegal Manager Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail July 8, 2024 to:

Respondent The Morgan Group Properties LLC DBA: The Morgan Group Properties 2301 S Stearman Dr Chandler, AZ 85286

of 1 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg126 5/21 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