ALJDEC - Licensing

2024A-04285-NPC-ROC · Registrar of Contractors · 2024-07-23

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Copper State Floor Covering LLC,

COMPLAINANT

v.

Healthy Home Flooring LLC,

License No. ROC 328401,

RESPONDENT

No. 2024A-04285-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: July 3, 2024

APPEARANCES: Emmanuel Franco, qualifying party, appeared on behalf of Copper State Flooring Covering LLC. 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

Healthy Home Flooring LLC (Respondent) is the holder of License No. 328401 issued by the Registrar of Contractors (Registrar).

On or about April 11, 2024, Copper State Floor Covering LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $76,331.09 for flooring installation services.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation for alleging a possible violation of Ariz. Rev. Stat. § 32-1154(A)(10).

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 PM on July 3, 2024. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record. A Google Meet 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 July 3, 2024.

Respondent did not request that the hearing be continued. Although the start of the hearing was delayed 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any evidence to defend its license.

Emmanuel Franco, qualifying party, testified that the total due to Complainant was $76,331.09. Mr. Franco testified that he was owed the following amounts: $30,818.09, $12,291.97, $154.00, $376.33, $3,071.51, $250.00, $250.00, $1,381.42, $897.84, $1,788.67, and an additional approximate $6,000.00.

Although Respondent did not appear at the hearing, in Respondent’s answer to the Complaint, Respondent acknowledged owing Complainant $24,788.45 as the undisputed amount. Respondent did not provide a breakdown of the undisputed claims, only to say:

Just because someone turns in handwritten paperwork suggesting we owe them that, does not mean it is true. His documents do not support that he did the work, or that we did not pay him. 7 pages of his documents are his printed check report, which means he was paid for those jobs.

CONCLUSIONS OF LAW

The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by a preponderance of the evidence.

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.

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

Ariz. Rev. Stat. § 32-1154(A)(10) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license,

[f]ailure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

The evidence established that Respondent owed a total of $51,279.83 for flooring installation services. The Complainant established, by a preponderance of the evidence, that Respondent failed to pay: $30,818.09; $12,291.97; $154.00; $376.33; $3,071.51; $250.00; $250.00; $1,381.42; $897.84; and $1,788.67.

Complainant failed to meet its burden of proof with regard to the “approximate” amount of $6,000.00 owed as alleged.

Therefore, Complainant established that Respondent violated Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $51,279.83 for services or materials rendered in connection with Respondent’s contracting business.

Based upon Respondent’s violation of the provisions of Ariz. Rev. Stat. § 32-1154(A)(10), grounds exist to impose discipline against Respondent’s license.

RECOMMENDed order

Based on the foregoing, it is recommended that the Registrar suspend Healthy Home Flooring LLC’s License No. 328401 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $51,279.83 in certified funds.

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, July 23, 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