2024A-03996-NPC-ROC Notice of Hearing & Packet MAILED 2024-03996.pdf

2024A-03996-NPC-ROC · Registrar of Contractors · 2024-07-10

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Associated Finishes Inc., Case No. 2024-03996

COMPLAINANT, Docket No. 2024A-03996-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE J P Kush Construction LLC License No. ROC 247343,

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

HEARING INFORMATION The hearing is set for:

August 22, 2024 1:00 PM Tammy Eigenheer 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 13, 2024. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED

The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A)(10)

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

be a party to the hearing.

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

argument to the administrative law judge.

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

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

1156(B).

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

HEARING PROCEDURES AND RULES

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

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

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

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

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

HEARING PACKET

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

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

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

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

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

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

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

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

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

DISCLOSURE STATEMENT

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

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

CHANGING THE HEARING DATE

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

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

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

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

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

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

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

Complaints – Resolved/Settled/Withdrawn.”

Dated July 9, 2024.

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

Copy mailed via USPS First Class mail July 9, 2024 to:

Respondent(s) J P Kush Construction LLC 16420 N 92nd St Ste. 222 Scottsdale, AZ 85260

Complainant(s) Associated Finishes Inc. 7335 E Acoma Dr Suite 101 Scottsdale, AZ 85260

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. 2024-03996 /

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

April 12, 2024

Via U.S. Mail and Email

Complainant Associated Finishes Inc. 7335 E Acoma Dr Suite 101 Scottsdale, AZ 85260

Respondent J P Kush Construction LLC 16420 N 92nd St., Ste 223 Scottsdale, AZ 85260

Re: Complaint No. 2024-03996

Dear Complainant and Respondent:

The Registrar received a complaint filed against J P Kush Construction LLC, for non-payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by April 19, 2024. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

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

The Registrar will not issue a citation before April 19, 2024 and will review Respondent’s response, if one is submitted.

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

Sincerely,

/s/ Gail Mathews Gail Mathews Legal Assistant II Legal Department Arizona Registrar of Contractors

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint (Payee) Business Name Full Name (First Middle Last) ROC License Number(s) (if any) BLAINE B BURGINJR Street Address City State Zip Code 35426 N 31st Drive Phoenix Arizona 85086 Phone Number Email Address (480) 951-1811 [email redacted] I consent to receive communications electronically in connection with this case

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

Licensee Information (Payer) Name (as shown on contracts, invoices, etc.) ROC License Number(s) J P Kush Construction LLC ROC 247343 Street Address City State Zip Code 7001 E. Main St. #101 Scottsdale Arizona 85251 Phone Number Email Address

Name of Person(s) Representing License Jason Patrick Kush Complaint Information Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $67,706.00 August 25, 2023 Have you filed a civil complaint? No List all specific invoices which have not been paid. Attach additional pages if necessary. INVOICE 27389 DRYWALL AT 6402 E LOMAS VERDES SCOTTSDALE, $37,017.00 DATED 08/25/2023; INVOICE 27733 DRYWALL AT 6409 E LOMAS VERDES SCOTTSDALE, $29,894.00 DATED 10/11/2023; INVOICE 28868 DRYWALL CHANGE ORDER 1 AT 6409 E LOMAS VERDES SCOTTSDALE, $795.00 DATED 02/22/2024

Certification I certify, upon information and belief, that the above-named licensee has failed to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor. I further certify, upon information and belief, that the above-named licensee has the capacity to pay, or has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. A.R.S. § 32-1154(A)(10). Printed Name Signature Date BLAINE B BURGINJR Declaration & Signature I am the Complainant in this Complaint Form or Complainant’s duly authorized representative. I declare under penalty of perjury that the information contained in this Form is true and correct to the best of my knowledge. I further certify that any documents submitted in support of this complaint are true and correct copies of the originals and are accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date BLAINE B BURGINJR Arizona Form Transaction Privilege Tax Exemption Certificate 5000 x Do not use Form 5000 to claim sale for resale. Use Form 5000A. x Do not use Form 5000 if you are a non-TPT licensed contractor. Use Form 5000M. This Certificate is prescribed by the Department of Revenue pursuant to A.R.S. § 42-5009. The purpose of the Certificate is to document and establish a basis for state and city tax deductions or exemptions. It is to be filled out completely by the purchaser and furnished to the vendor at the time of the sale. The vendor shall retain this Certificate for single transactions or for the specified period as indicated below. Incomplete Certificates are not considered to be accepted in good faith. Only one category of exemption may be claimed on a Certificate.

A. Purchaser’s Name and Address: B. Check Applicable Box: Name J.P. Kush Construction, llc Single Transaction Certificate Address 16420 7001 N 92nd E Main St Ste 223 St #101 1/1/22 1/1/2021 12/31/22 12/31/2021 X Period From 5/1/2020 Through 12/31/2020 City State ZIP Code (You must choose specific dates for which the certificate will be valid. You Scottsdale AZ 85260 85251 are encouraged not to exceed a 12 month period. However, a certificate will be considered to be accepted in good faith for a period not to exceed 48 months if the Vendor’s Name vendor has documentation the TPT license is valid for each calendar year covered in the certificate.)

C. Choose one transaction type per Certificate: X Transactions with a Business Transactions with Native Americans, Native American Businesses and Tribal Governments (See reason #12.) Arizona Transaction Privilege Tax (TPT) License Number Tribal Business License Number OR Tribal Number 21175035 SSN / EIN Name of Tribe Tribal Government

Other Tax License Number Transactions with a U.S. Government entity 1136200 - City of Scottsdale (See reasons #9 and #10.) If no license, provide reason: Transaction with a Foreign Diplomat (See reason #13.) Precise Nature of Purchaser’s Business. Home building & development

D. Reason for Exemption: Check the box indicating one of the more common exemptions provided below, or use Box 14 or 15 to cite the appropriate authority for another exemption (deduction). Refer to www.azdor.gov/Forms/TransactionPrivilegeTax.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply. 1. Tangible personal property to be leased or rented in the ordinary course of the purchaser’s licensed business. X 2. Tangible personal property to be incorporated into a taxable contracting project, or a maintenance, repair, replacement or alteration project. 3. Food, drink, or condiments purchased by a restaurant business. 4. Pipes or valves four inches in diameter or greater to be used for transportation of oil, natural gas, artificial gas, water or coal slurry. 5. Railroad rolling stock, rails, ties, and signal control equipment. 6. Machinery or equipment used directly in the following business activities: Manufacturing, processing or fabricating. Job printing. Refining or metallurgical operations. Extraction of ores or minerals from the earth for commercial purposes. Extraction of, or drilling for, oil or gas from the earth for commercial purposes. 7. Other income producing capital assets. (Cities only.) 8. Food, drink or condiments for consumption within the premises of any prison, jail or other institution under the jurisdiction of the state department of corrections, the department of public safety, the department of juvenile corrections or a county sheriff. Food, drink, condiments or accessories purchased by a school district for consumption at a public school within the district during school hours. 9. Tangible personal property sold or leased directly to the United States Government or its departments or agencies by a manufacturer, modifier, assembler or repairer. (Retail, personal property rental and mining classifications only.) 10. Fifty percent of the gross proceeds or gross income from the sale of tangible personal property directly to the United States Government or its departments or agencies. (Retail classification only.) ADOR 10308 (3/19) Continued on page 2 Î Your Name (as shown on page 1) Arizona Transaction Privilege Tax License Number

11. Electricity, natural gas or liquefied petroleum gas sold to a qualified manufacturing or smelting business. A manufacturing or smelting business that claims this exemption authorizes the release by the vendor of the information required to be provided to the Department of Revenue pursuant to A.R.S. §42-5063(C)(6). (Utilities classification only.) 12. Sale or lease of tangible personal property to affiliated Native Americans if the solicitation for sale, signing of the contract, delivery of the goods and payment for the goods all occur on the reservation. NOTE: The vendor shall retain adequate documentation to substantiate the transaction. 13. Foreign diplomat. NOTE: Limited to authorization on the U.S. Department of State Diplomatic Tax Exemption Card. The vendor shall retain a copy of the U.S. Department of State Diplomatic Tax Exemption Card and any other documentation issued by the U.S. Department of State. Motor vehicle purchases or leases must be pre-authorized by the Office of Foreign Missions (“OFM”). See “Vehicle Tax Exemption” at www.state.gov/ofm/tax/

14.*Other Deduction: Cite the Arizona Revised Statutes authority for the deduction. A.R.S. § Description:

15.*Other Cities Deduction: Cite the Model City Tax Code authority for the deduction. M.C.T.C § Description:

*Refer to www.azdor.gov/TransactionPrivilegeTax(TPT)/RatesandDeductionCodes.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply.

E. Describe the tangible personal property or service purchased or leased and its use below. (Use additional pages if needed.)

F. Certification A vendor that has reason to believe that this Certificate is not accurate or complete will not be relieved of the burden of proving entitlement to the exemption. A vendor that accepts a Certificate in good faith will be relieved of the burden of proof and the purchaser may be required to establish the accuracy of the claimed exemption. If the purchaser cannot establish the accuracy and completeness of the information provided in the Certificate, the purchaser is liable for an amount equal to the transaction privilege tax, penalty and interest which the vendor would have been required to pay if the vendor had not accepted the Certificate. Misuse of this Certificate will subject the purchaser to payment of the A.R.S. § 42-5009 amount equal to any tax, penalty or interest. Willful misuse of this Certificate will subject the purchaser to criminal penalties of a felony pursuant to A.R.S. § 42-1127(B).

I, (print full name) Jason Kush , hereby certify that these transactions are exempt from Arizona transaction privilege tax and that the information on this Certificate is true, accurate and complete. Further, if purchasing or leasing as an agent or officer, I certify that I am authorized to execute this Certificate on behalf of the purchaser named above. 1/1/22 1/1/21 5/1/20 President SIGNATURE OF PURCHASER DATE TITLE ADOR 10308 (3/19) Page 2 of 2 Print Form Reset Form Page 1 of 2 Trevor Burgin

Proposal for: JPK Attn: Jason 9/27/2022

Address: (480) 530-0227 [email redacted] Project: Drywall @ Lomas Verdes – Casita – Address Needed

We propose to furnish all required materials and labor to perform work in accordance with this contract in a satisfactory and workmanlike manner, on the above project.

Drywall and Stucco per plans dated 5/11/20 to include the following:

1. Drywall installed per plans and to code throughout. 2. 1/2" Denshield @ shower/tub areas. No ½ inch exterior soffit @ Exterior ceiling applications. Hi strength ceiling rated ½ inch sheetrock at all interior walls and ceilings livable areas. 3. 3/4" Round or square Corner-bead installed throughout. 4. Drywall installed and finished to floor and kerfed door jambs throughout. 5. Drywall texture to be a Semi Smooth 90/10. 6. Drywall Debris removed and disposed of by Associated Finishes Drywall Casita: $7,021.00 + Tax Cash or Check Price

________________________________________________________________________________________________

If customer does not provide Arizona Resale Tax number, by submitting a signed AZ DOR Form 5005 before invoicing, sales tax on 65% of the contract will be added to proposal price and become a part of this contract. Customer agrees to pay all applicable sales tax if not for resale.

Terms: 60 percent of contract price is due upon completion of drywall hanging/ stucco lathing. Drywall taping/Stucco browning will not commence until 60% of contract price is paid in full. 30% of balance is due prior to commencement of Drywall/Stucco Texture, balance of contract due upon completion of texture, NO RETENTIONS. Final punch, IE., repair work performed after paint application, will not be performed until contract price and any additional change orders are paid in full. "This contract is subject to ARS 32-1129.02."(Terms continued on next page)

JPK Drywall 9/23/2022

All costs necessitated to collect are to be paid by builder or owner. If not paid within ten days after stated terms, 2% per month penalty will be added to contract price. Purchaser agrees to pay Associated Finishes’ legal fees in the event the full balance is not paid on time. Associated Finishes will not be liable for delay or special damages of any kind. Purchaser affirmatively represents that the dwelling referred to above is not “owner occupied” as that term is defined by laws of the State of Arizona Under Arizona Revised Statues Section §32-1155, A Buyer of a Dwelling has the right to file a written complaint against the homebuilder with the Registrar of Contractors within two years of the commission of an act in violation of Arizona Revised Statutes Section §32-1154 Subsection A. This proposal and contract is subject to price increase if work is not started within sixty days of the above date, unless otherwise stipulated. Sub-Contractor will not be responsible for any defects caused by any other crafts other than his own. Forty-eight hours advance notice of starting date of said work to be given by General Contractor to Associated Finishes, Inc. Regarding drywall, notice needs to be given prior to start of project if paint with any amount of sheen is to be used in any areas other than kitchens or baths, please notify associated finishes prior to start of work, as additional pricing may incur.Regarding Stucco, we highly recommend that General Contractor and Homeowner use "Elastomeric" Coating or paint and sealer to bridge hairline cracks that will develop due to settling. Settling can occur immediately or over a period of years, is a normal occurrence in all structures and is in no way related to materials or installation. The stucco department of Associated Finishes, Inc., policy is to apply “VIP Caulking” and elastomeric coatings when making stucco repairs. These products are utilized in the repair of structural cracking. A “blocker” primer coat must be used on stucco repairs prior to paint application. There are a few products available that will assist in blocking the efflorescence shine. The following products provide excellent alkali and efflorescence resistance. All patches should be spot primed before application of a full primer coat; EFF-Stop, Z-Primer, Kilz and QD-30. The price quoted above is based upon City and State Building codes and requirements and does not necessarily reflect plans and specifications. *** The Signer below agrees that he/she is authorized to sign, and agrees to all terms included in this contract and agrees to be liable to pay Associated Finishes, Inc all monies owed under this agreement.

Parcel #____________________________ Sales Tax (resale) #__________________________________

Property Owner______________________________ Phone #___________________________________

Proposal for: JPK Attn: Jason 9/27/2022

Address: (480) 530-0227 [email redacted] Project: Drywall @ Lomas Verdes – Model 1 – Address Needed

We propose to furnish all required materials and labor to perform work in accordance with this contract in a satisfactory and workmanlike manner, on the above project.

Drywall and Stucco per plans dated 5/11/20 to include the following:

1. Drywall installed per plans and to code throughout. 2. 1/2" Denshield @ shower/tub areas. 5/8 Fire-code @ Garage and Mechanical rooms. No ½ inch exterior soffit @ Exterior ceiling applications, see stucco number. Hi strength ceiling rated ½ inch sheetrock at all interior walls and ceilings livable areas. 3. 3/4" Round or square Corner-bead installed throughout. 4. Drywall installed and finished to floor and kerfed door jambs throughout. 5. Drywall texture to be a Semi Smooth 90/10. 6. Drywall Debris removed and disposed of by Associated Finishes Drywall Model 1: $29,996.00 + Tax Cash or Check Price

________________________________________________________________________________________________

JPK Drywall 9/27/2022

Parcel #____________________________ Sales Tax (resale) #__________________________________

Property Owner______________________________ Phone #___________________________________

Proposal for: JPK Attn: Jason 9/27/2022

Address: (480) 530-0227 [email redacted] Project: Drywall @ Lomas Verdes – Model 2 – Address Needed

We propose to furnish all required materials and labor to perform work in accordance with this contract in a satisfactory and workmanlike manner, on the above project.

Drywall and Stucco per plans dated 5/11/20 to include the following:

1. Drywall installed per plans and to code throughout. 2. 1/2" Denshield @ shower/tub areas. 5/8 Fire-code @ Garage and Mechanical rooms. No ½ inch exterior soffit @ Exterior ceiling applications, to be T&G installed by others. Hi strength ceiling rated ½ inch sheetrock at all interior walls and ceilings livable areas. 3. 3/4" Round or square Corner-bead installed throughout. 4. Drywall installed and finished to floor and kerfed door jambs throughout. 5. Drywall texture to be a Semi Smooth 90/10. 6. Drywall Debris removed and disposed of by Associated Finishes Drywall Model 2: $29,894.00 + Tax Cash or Check Price

________________________________________________________________________________________________

JPK Drywall 9/27/2022

Parcel #____________________________ Sales Tax (resale) #__________________________________

Property Owner______________________________ Phone #___________________________________

Lender______________________________________ Phone #___________________________________ Addendum A ____________________________________________ ________________________________________ Authorized Signer and/or Property Owner./Title/Date Associated Finishes,Inc./Date DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 06/09/2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Linda Pingtella NAME: CORPORATE INSURANCE SOLUTIONS PHONE (480) 336-8740 FAX (480) 339-0064 (A/C, No, Ext): (A/C, No): 8585 E Hartford Drive E-MAIL [email redacted] ADDRESS: Suite 600 INSURER(S) AFFORDING COVERAGE NAIC # Scottsdale AZ 85255 INSURER A : Midwest Family Mutual Ins. 23574 INSURED INSURER B : Associated Finishes, Inc. INSURER C : 7335 E Acoma Dr INSURER D : Ste 101 INSURER E : Scottsdale AZ 85260 INSURER F : COVERAGES CERTIFICATE NUMBER: CL2012202412 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED 50,000 CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $ Owners & Contractors Protective MED EXP (Any one person) $ 5,000 A ACAZ0560105000 02/01/2020 02/01/2021 PERSONAL & ADV INJURY $ 1,000,000

GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 PRO- 2,000,000 POLICY JECT LOC PRODUCTS - COMP/OP AGG $

OTHER: $

AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) ANY AUTO BODILY INJURY (Per person) $

A OWNED SCHEDULED CAAZ0560105001 02/01/2020 02/01/2021 BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) Underinsured motorist $ 1,000,000 combined single limit UMBRELLA LIAB OCCUR EACH OCCURRENCE $ 2,000,000 A EXCESS LIAB CLAIMS-MADE CUAZ0560105002 02/01/2020 02/01/2021 AGGREGATE $ 2,000,000

DED RETENTION $ 10,000 $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS' LIABILITY STATUTE ER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ Limit $50,000 Rented/Leased Equipment A ACAZ0560105000 02/01/2020 02/01/2021 Deductible $1,000

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN JPK ACCORDANCE WITH THE POLICY PROVISIONS.

7001 E Main St. AUTHORIZED REPRESENTATIVE Suite 101 Scottsdale AZ 85251

© 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 04/06/2022 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Linda Salmond NAME: CORPORATE INSURANCE SOLUTIONS PHONE (480) 336-8740 FAX (480) 339-0064 (A/C, No, Ext): (A/C, No): 8080 E. Gelding Dr. E-MAIL [email redacted] ADDRESS: Suite 110 INSURER(S) AFFORDING COVERAGE NAIC # Scottsdale AZ 85260 INSURER A : James River Insurnace Company 13685 INSURED INSURER B : Midwest Family Mutual Ins. 23574 Associated Finishes, Inc. INSURER C : 7335 E Acoma Dr INSURER D : Ste 101 INSURER E : Scottsdale AZ 85260 INSURER F : COVERAGES CERTIFICATE NUMBER: CL2212504070 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED 50,000 CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $

MED EXP (Any one person) $ 1,000 A 00126584-0 02/01/2022 02/01/2023 PERSONAL & ADV INJURY $ 1,000,000

GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 PRO- 2,000,000 POLICY JECT LOC PRODUCTS - COMP/OP AGG $

OTHER: $

AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) ANY AUTO BODILY INJURY (Per person) $

B OWNED SCHEDULED CAAZ0560105001 02/01/2022 02/01/2023 BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) $

UMBRELLA LIAB OCCUR EACH OCCURRENCE $ 2,000,000 A EXCESS LIAB CLAIMS-MADE 00126635-0 02/01/2022 02/01/2023 AGGREGATE $ 2,000,000

DED RETENTION $ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS' LIABILITY STATUTE ER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ 1,000,000 B OFFICER/MEMBER EXCLUDED? Y N/A CPAZ0560130571-0 01/01/2022 01/01/2023 (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 Limit $100,000 Rented/Leased Equipment B ACAZ0560105000 02/01/2022 02/01/2023 Deductible $1,000

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Jason P Kush ACCORDANCE WITH THE POLICY PROVISIONS.

16420 N 92nd St. AUTHORIZED REPRESENTATIVE Suite 223 Scottsdale AZ 85260

Date: 2/27/2023

Contractor: JPK

Attention: Jason Kush

Project: 6408 East Lomas Verde

Drywall:

Description of Work performed:

1. Repair drywall at base throughout home where undercut to $3,550.00 receive tile. 2. 3. 4.

Must be signed by authorized personnel only. Signer agrees that he/she is authorized to sign for additional work for Contractor. Contractor agrees that this change order becomes a part of original contract and will be paid under the same terms and conditions as original contract.

Approved by: _____________________________ 2/27/23 Title:___________________________________

Date:___________________________________ 0123ÿ516789 ÿ 12316789 1

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233ÿ6ÿdmÿnopÿ8ÿ6ÿ386ÿ ÿq9ÿ79ÿ98p8ÿr2 ÿ1rÿ79ÿ98ÿ1ÿs8668ÿ88ÿt u*6(V55U W1(ÿvwPÿ-)ÿ;52ÿ5;ÿ)56-*.ÿ'(F-*x :*U(ÿ)K4(ÿ05ÿG5..52ÿK)ÿ5;C u*6(V55Uÿ W2-00(4

MM XYZ[ÿ]Y^_`ab c8 13ÿd 2616 e@?Mff%Meg@A +*-./'*01(2)3456/*7/+58 %f@@ÿhÿh*)1-;+05;ÿiK-0(ÿ%@j N15(;-k<ÿ=lÿgj@@f

233ÿ6ÿdmÿnopÿ8ÿ6ÿ386ÿ ÿq9ÿ79ÿ98p8ÿr2 ÿ1rÿ79ÿ98ÿ1ÿs8668ÿ88ÿt u*6(V55U W1(ÿvwPÿ-)ÿ;52ÿ5;ÿ)56-*.ÿ'(F-*x :*U(ÿ)K4(ÿ05ÿG5..52ÿK)ÿ5;C u*6(V55Uÿ W2-00(4 Received 5/7/24, 9:15 AM State of Arizona Mail - Complaint 2024-03996 response 5/03/2024 ROC Legal

Legal New Mail - AZROC <[email redacted]>

Complaint 2024-03996 response message

Jason Kush <[email redacted]> Fri, May 3, 2024 at 10:49 AM To: "[email redacted]" <[email redacted]>

Good Morning,

I received the attached notification in the mail this week from the ROC regarding complaint 2024-03996.

I have been in communication with associated finishes. They have allowed JP Kush Construction terms allowing payment to be made by 7/1/24, so approximately 60 days from now. That correspondence is attached.

I therefore request the ROC either reject this complaint or hold it until after the July 1, 2024 date per our agreement.

Thank you for yoru prompt attention to this matter,

Sincerely,

Jason Kush

https://mail.google.com/mail/b/AEoRXRTROYmDGj5gYlx83jtdwjwpHzdo1DIMbkZty9dfeqxspAYR/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 1/2 Received 5/7/24, 9:15 AM State of Arizona Mail - Complaint 2024-03996 response 5/03/2024 ROC Legal

attachments Associated email.pdf 119K ARIZONA REGISTRAR OF CONTRACTORS.pdf 4702K

https://mail.google.com/mail/b/AEoRXRTROYmDGj5gYlx83jtdwjwpHzdo1DIMbkZty9dfeqxspAYR/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 2/2 Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal Received 5/03/2024 ROC Legal

Friday, May 3, 2024 at 10:43:56 Mountain Standard Time

Subject: RE: Update on Lomas Project Status and Outstanding Invoices Date: Thursday, May 2, 2024 at 11:25:44 AM Mountain Standard Time From: Denise Baxter To: Jason Kush CC: Trevor Burgin, Joshua Burgin, JR Burgin Attachments: image001.jpg

Mr. Kush,

After placing numerous unreturned calls and messages to you regarding the past due balance with Kush Construction, it was nice that you ﬁnally responded.

While you may have had issues with other contractors on the Lomas Verdes project, that is out of the control of Associated Finishes. That you may have a valid judgement against another party does not guarantee that Associated Finishes will be paid.

We have a valid lien on the property at Lot , Lomas Verdes and will pursue litigation on that if not paid by July 1st. That will allow 60 days for your eXorts as detailed in your email of April 26, 2024.

We have also ﬁled a complaint with the Arizona Registrar of Contractors for non-payment.

It is, therefore, imperative that you satisfy this debt as soon as possible.

If you have any questions, please respond to this email.

Sincerely,

Denise Baxter Associated Finishes, Inc. Secretary-Treasurer Phone: 480-951-1811, x 101 Email: denise@associatedﬁnishes.com

From: Trevor Burgin <Trevor@associatedﬁnishes.com> Sent: Friday, April 26, 2024 10:13 AM To: Joshua Burgin <josh@associatedﬁnishes.com>; JR Burgin <jr@associatedﬁnishes.com> Cc: Denise Baxter <denise@associatedﬁnishes.com>

of 3 Received 5/03/2024 ROC Legal

Subject: Fw: Update on Lomas Project Status and Outstanding Invoices

Trevor Burgin

Associated Finishes Inc. est 1965

7335 East Acoma drive Suite 101 ScoWsdale AZ 85260

(480) 951-1811

From: Jason Kush <[email redacted]> Sent: Friday, April 26, 2024 10:04 AM To: Trevor Burgin <Trevor@associatedﬁnishes.com> Subject: Update on Lomas Project Status and Outstanding Invoices

Subject: Update on Project Status and Outstanding Invoices

Dear Trevor,

I hope this message ﬁnds you well. I regret the delay in reaching out to you, as I intended to do so several weeks ago. Unfortunately, unforeseen circumstances caused a slight delay in my communication.

Approximately two years ago, a subcontractor involved in the civil work encountered signiﬁcant challenges, resulting in substantial ﬁnancial setbacks totaling nearly $500,000 for additional work, repairs, and payments for incomplete tasks on our project. Recently, we received the attached judgment regarding this subcontractor.

This issue, coupled with prolonged construction timelines, has placed considerable strain on the project’s cash ﬂow. As a consequence, a few challenges have arisen over the past days.

Currently, I am diligently working on securing construction loans and extracting equity from the remaining lots at Lomas Verdes. I anticipate ﬁnalizing these arrangements within the next 45 to 60 days. Subsequently, I am committed to promptly resolving any outstanding payments within a 30-day timeframe following the completion of these ﬁnancial arrangements with my lenders.

I want to emphasize that I have always upheld my obligations to subcontractors and

of 3 Received 5/03/2024 ROC Legal

creditors, and I have no intention of deviating from this principle. I kindly request your continued patience and understanding during this transitional period. Your partnership and support throughout this project have been invaluable, and my priority is to ensure that we all reach a satisfactory resolution and maintain our collaborative relationship.

I am more than willing to arrange a discussion or meeting at your convenience next week to address any further concerns or questions you may have.

Thank you for your understanding and cooperation.

Sincerely,

Jason P. Kush

of 3 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-03996 Associated Finishes Inc., . COMPLAINANT, CITATION v. J P Kush Construction LLC, License No. ROC 247343, RESPONDENT.

The Registrar issues this Citation to J P Kush Construction LLC, (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by May 28, 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 April 5, 2024, Associated Finishes Inc., (“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)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services

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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 rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased. 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. 2024-03996. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than May 28, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides 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 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). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are

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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 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 13, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, May 13, 2024 to: Respondent Certified Mail No: [number redacted] J P Kush Construction LLC 16420 N 92nd St., Ste. 223 Scottsdale, AZ 85260

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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 mailed by USPS First Class mail this same date to:

J P Kush Construction LLC 16420 N 92nd St., Ste. 223 Scottsdale, AZ 85260 Complainant Associated Finishes Inc., 7335 E Acoma Dr. Suite 101 Scottsdale, AZ 85260 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. 2024-03996 / GM

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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 Received 5/28/2024 ROC Legal

REGISTRAR OF CONTRACTORS

THE STATE OF ARIZONA

ASSOCIATED FINISHES, INC, Case No.: Number

Complainant,

v. CASE NO 2024-03996

J P KUSH CONSTRUCTION LLC, MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION LICENSE NO. ROC 247343,

Respondent,

Respondent J.P. Kush Construction, LLC (“Kush Construction”) hereby moves for relief from default for three reasons: 1) lack of service and 2) a situation exists where it would be appropriate for the Arizona Registrar of Contractors (“ROC”) to exercise its discretion. In the alternative, Kush Construction requests the ROC stay enforcement of the current order to allow Kush Construction to appeal to the Superior Court. 3) The complainant and respondent have come to terms after the complaint was filed. I. Lack of Service A.R.S. §32-1155(B) requires service be done by either personal service or by mailing a copy of the citation via certified mail. In this case, Kush Construction was not served by either personal service or by signing for certified mail; accordingly, service has not been completed and default is improper at this stage of the proceedings. As set forth in more detail in the accompanying Declaration of Jason Kush, Kush

Construction has only two employees. Mr. Kush, who has been working from home since April 6, 2024. Mr. Kush avows that he was neither personally served nor signed for certified mail with respect to the Citation. Mr. Kush has also confirmed that his employee was not personally served and did not sign for certified mail.

II. Exercise Discretion In addition to lack of service, this is a situation that warrants the ROC exercising the discretion afforded it in A.R.S. §32-1155(C). Under this statute, the ROC is not required to find the lack of an answer as an admission. (“Failure of the licensee to answer within CASE NO 2024-03996MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 5/28/2024 ROC Legal

ten days after service may be deemed an admission...”)(emphasis added). This statute further gives the ROC the ability to exercise discretion when the failure to answer is “attributable to excusable neglect on the part of the licensee.” Deciding a case on the merits should always be the goal and denying a Respondent that right due to a technical procedural violation does not serve justice. When exercising discretion, courts have made clear that courts “shall be liberal in relieving parties of defaults caused by inadvertence and excusable neglect.” Brown v. Beck, 64 Ariz. 299, 302, 169 P. 2d 855, 857 (1946). Setting aside the default is appropriate here as Kush Construction can show both excusable neglect and that it has a valid defense on the merits.

Jason Kush is the employee of Kush Construction handling the administration of the company. The other employee works in the field. As set forth more fully in the attached declaration of Mr. Kush, he has been experiencing personal issues that have required his full attention. Prior to this week, the last time he was at the office was April 5, 2024. The citation in this matter was issued April 8, 2023 and required an Answer by April 23. In addition to attending to personal matters during April, Mr. Kush was out of the country from April 18 – 23, 2024. Respondents have fifteen days or approximately two weeks, which is a very short time frame. For example, in civil court, an answering party has twenty days to answer a complaint and then an additional ten days to respond to a motion for default.

The exercise of the ROC’s discretion should tend “to bring about a judgment on the very merits of a case; and when the circumstances are such as to lead to a court to hesitate upon a motion to open a default, it is better, as a general rule, that the doubt shall be resolved in favor of the application.” See Brown v. Beck, 64 Ariz. 299, 302, 169 P. 2d 855, 857 (1946). In the instant situation, the ROC should exercise its discretion and relieve the Respondent from default. Kush Construction’s failure to respond was inadvertent and due to personal matters.

III. Excessive Penalty Kush Construction has been licensed with the ROC for almost twenty years. It is a small, reputable company with deep ties to this community. It is not a fly-by-night contractor preying on innocent homeowners or subcontractors.

In addition, Associated finishes and JP Kush Construction have agreed to terms for any and all amounts owed. This modified contract happened after Associated finishes filed this complaint. Therefore, the terms of this complaint have been satisfied. Please see attached correspondence/agreement from associated finishes. CASE NO 2024-03996MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 5/28/2024 ROC Legal

IV. Alternatively, Stay Enforcement If the ROC is not inclined to remove the complaint, we respectfully ask for a stay of the enforcement for thirty days to allow time to appeal this matter to superior court. V. Conclusion Kush Construction is a two-person company which has served the Valley for nearly two decades. A small company has little room for error when the time to respond is two weeks. Here, personal matters effected the employee tasked with responding. But, they are responding now and less than two weeks after the deadline to respond. The excusable neglect, coupled with the issue of whether service was actually completed provide sufficient grounds for the ROC to dissolve the default and Kush Construction respectfully requests same. The original was filed this day 28th day of May, 2024, with:

Arizona Registrar of Contractors 1700 W. Washington St., Ste. 105 Phoenix, AZ 85007 www.Roc.az.gov

[email redacted]

A copy of this was mailed, postage prepaid, to the Complainant at:

Associated Finishes 7335 E Acoma Dr Ste 101 Scottsdale, AZ 85260

Dated this 28th of May, 2024.

CASE NO 2024-03996MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 5/28/2024 ROC Legal

Jason Kush

CASE NO 2024-03996MOTION FOR STAY OF ENFORCEMENT OR MOTION TO TERMINATE CITATION - Received 5/28/2024 ROC Legal

Friday, May 3, 2024 at 10:43:56 Mountain Standard Time

Mr. Kush,

After placing numerous unreturned calls and messages to you regarding the past due balance with Kush Construction, it was nice that you ﬁnally responded.

We have also ﬁled a complaint with the Arizona Registrar of Contractors for non-payment.

It is, therefore, imperative that you satisfy this debt as soon as possible.

If you have any questions, please respond to this email.

Sincerely,

Denise Baxter Associated Finishes, Inc. Secretary-Treasurer Phone: 480-951-1811, x 101 Email: denise@associatedﬁnishes.com

of 3 Received 5/28/2024 ROC Legal

Subject: Fw: Update on Lomas Project Status and Outstanding Invoices

Trevor Burgin

Associated Finishes Inc. est 1965

7335 East Acoma drive Suite 101 ScoWsdale AZ 85260

(480) 951-1811

From: Jason Kush <[email redacted]> Sent: Friday, April 26, 2024 10:04 AM To: Trevor Burgin <Trevor@associatedﬁnishes.com> Subject: Update on Lomas Project Status and Outstanding Invoices

Subject: Update on Project Status and Outstanding Invoices

Dear Trevor,

This issue, coupled with prolonged construction timelines, has placed considerable strain on the project’s cash ﬂow. As a consequence, a few challenges have arisen over the past days.

I want to emphasize that I have always upheld my obligations to subcontractors and

of 3 Received 5/28/2024 ROC Legal

I am more than willing to arrange a discussion or meeting at your convenience next week to address any further concerns or questions you may have.

Thank you for your understanding and cooperation.

Sincerely,

Jason P. Kush

of 3 Received 5/29/24, 7:59 AM State of Arizona Mail - Answer Citation 2024-03996 5/28/2024 ROC Legal

Answers - AZROC <[email redacted]>

Answer Citation 2024-03996 message

Jason Kush <[email redacted]> Tue, May 28, 2024 at 2:20 PM To: "[email redacted]" <[email redacted]>

Please see attached regarding citation 2024-03996 against JP Kush Construction ROC#247343

Thanks,

Registrar of contractors Associated Finsihes response.pdf 263K

https://mail.google.com/mail/b/AEoRXRQO1TgykD-fvjYPp5KyAXQW3rM6QtOfQ2gbRYK0t0mGFyCc/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Associated Finishes Inc, Case No. 2024-03996 COMPLAINANT, v. J P Kush Construction LLC ORDER DENYING REQUEST TO License No. ROC 247343, DISMISS RESPONDENT.

BACKGROUND On May 13, 2024 the Registrar issued a citation against Respondent’s License No. 247343. Respondent filed its Answer on May 29, 2024 The Answer included a request to dismiss the citation and close the complaint. Respondent requested in its Answer for the Registrar to dissolve or set aside the Default against Respondent. The Registrar has not issued a Default order against Respondent or imposed discipline against Respondent in this matter. ORDER IT IS ORDERED that Respondent’s request to dismiss is DENIED. The issues underlying the Citation and Complaint are best suited for presentation before the Office of Administrative Hearings. Respondent has not provided sufficient information or evidence to support a dismissal at this time. Respondent is free to raise the arguments and defenses presented in its request to dismiss before the administrative law judge.

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 5/21 A Notice of Hearing will be issued in due course. Dated June 20, 2024. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail on June 20, 2024 to: Respondent(s) J P Kush Construction LLC 16420 N 92nd St Ste 222 Scottsdale, AZ 85260 Complainant(s) Associated Finishes Inc 7335 E Acoma Dr Suite 101 Scottsdale, AZ 85260 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. 2024-03996/

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 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