ALJDEC - Licensing

2024A-03528-CHC-ROC · Registrar of Contractors · 2024-08-29

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Stephen Hale Ostrom,

COMPLAINANT

v.

Power4ward LLC

License No. ROC 335154,

RESPONDENT

No. 2024A-03528-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: August 16, 2024

APPEARANCES: Stephen Ostrom appeared on his own behalf. Respondent failed to appear.

ADMINISTRATIVE LAW JUDGE: Amy M. Haley

EXHIBITS ADMITTED INTO EVIDENCE: Administrative Notice was taken of the Notice of Hearing packet and all of its documents contained therein.

_____________________________________________________________________

FINDINGS OF FACT

Power4ward LLC (Respondent) is the holder of License No. 335154 issued by the Arizona Registrar of Contractors (Registrar).

On or about December 8, 2022, Stephen Ostrom (Complainant) entered into a contract with Respondent for the construction and installation of a solar electric system.

On or about March 26, 2024, the Registrar received a Complaint against Respondent from Complainant alleging abandonment and poor work with respect to the project.

The Registrar assigned the complaint to Investigator Jack Grimm. After a jobsite inspection, Investigator Grimm issued a written directive to Respondent that provided as follows:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify

the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on Friday, May 17, 2024.

RESTRICTIONS

. . . . .

DIRECTIVE REQUIREMENTS

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

Complaint Item #1: Power4Ward was contracted to install solar panels in December of 2023. Construction started in January of 2023 but was stalled until August and November 2023. I'm paying on a loan for more than a year for solar panels that I'm not able to benefit from. I have 3 breakers in my house were mis-wired, so my kitchen and garage have no power. I would like my solar panels to be working and connected to SRP’s grid. I would like my breaker box fixed including the 3 connections that were mis-wired.

Investigators Observation: It appears that most if not all of the components are in place with some finishing items to be addressed to make the system operational. A new whole house panel was installed and the old panel was used as a sub panel. This work was approved by the city code jurisdiction on 11-12-23. Homeowner states three (3) areas of the house have no power when the new panel was installed. Solar system is incomplete and not operating. Project appears to be abandoned. *Complete solar system, correct location in the home with no power and obtain all required inspections and approvals by code jurisdiction and utilities and make system operational.

After the deadline in the directive expired, Investigator Grimm was notified no corrective work had been performed.

The Registrar issued a Citation against Respondent, charging possible violations of Ariz. Rev. Stat. § 32-1154(A)(1); Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A); and Ariz. Rev. Stat. § 32-1154(A)(22).

The Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing.

The Registrar issued a Notice of Hearing, setting a hearing at 1:00 p.m. on August 16, 2024. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record. An August 7, 2024 order from the Office of Administrative Hearings advised the parties of how to connect to the hearing via Google Meet. The hearing was held via Google Meet on August 16, 2024.

Respondent did not request that the hearing be continued. Although the start of the hearing was delayed 10 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any evidence to defend its license.

Investigator Grimm testified consistently with his jobsite inspection observations and subsequent written directive. He further testified that Respondent did not appear at the jobsite inspection and Respondent never contacted him. On May 30, 2024, Investigator Grimm received an email from Complainant stating that no work had been performed and that Respondent had not contacted Complainant.

Complainant testified that discovered that the system was installed without a City of Phoenix permit. He further testified that to date, Respondent had not made any contact with him to correct the issues.

Administrative notice is taken of Respondent’s prior License record on August 16, 2024. Such prior License record reflects that Respondent’s License No. 335154 was first issued on October 18, 2021, and is currently active. Such prior License record also reflects that there were a total of 4 open complaints and 2 prior disciplined cases against Respondent’s license.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

The Notice of Hearing that the Registrar mailed to Respondent at its address and email address of record was reasonable, and Respondent is deemed to have received notice of the hearing.

Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence.

“A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

The evidence established that Respondent submitted a bid and began work on Complainant’s project, but then abandoned the contract. Accordingly, Complainant established that Respondent abandoned the contract without legal excuse for the abandonment in violation of Ariz. Rev. Stat. § 32-1154(A)(1).

The evidence established that Respondent’s work was not in conformity with the Registrar’s standards as the system was not functional and was completed without obtaining the necessary permits. Therefore, Complainant established that Respondent did not complete the project in a workmanlike manner in violation of Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A).

The evidence established that Respondent did not attempt to complete the corrective work following the Directive being issued. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a written directive from the Registrar in violation of Ariz. Rev. Stat. § 32-1154(A)(22).

RECOMMENDED ORDER

Given the Respondent’s history of open and disciplined cases, and the complete lack of contact with the Registrar and/or Complainant in this case, based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall revoke Respondent’s License No. 335154.

It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to Ariz. Rev. Stat. § 32-1154(E).

It is further recommended that if Respondent fails to pay the entire amount of the civil penalty on or before thirty days following the effective date of the Registrar’s final order, the Registrar revoke Respondent’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in Ariz. Rev. Stat. § 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

Done this day, August 29, 2024.

/s/ Amy M. Haley

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Tom Cole, Director

Registrar of Contractors

By: OAH Staff