ALJDEC - Licensing

2024A-05222-NPC-ROC · Registrar of Contractors · 2024-09-24

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Payne Custom Concrete LLC,

COMPLAINANT

v.

Integrity Steel Company LLC

DBA: Integrity Steel Co

License No. ROC 336643,

RESPONDENT

No. 2024A-05222-NPC-ROC

ADMINISTRATIVE LAW JUDGE

DECISION

HEARING: August 12, 2024, with the record held open until September 20, 2024

APPEARANCES: Complainant Payne Custom Concrete LLC was represented by Paul Frame. Nicholas Lammers, Owner and Qualifying Party, appeared on behalf of Respondent Integrity Steel Company LLC, doing business as Integrity Steel Co.

ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer

EXHIBITS ADMITTED INTO EVIDENCE: Administrative Notice was taken of the Hearing Packet submitted by the Registrar of Contractors.

FINDINGS OF FACT

Integrity Steel Company LLC, doing business as Integrity Steel Co. (Respondent) is the holder of License No. 336643 issued by the Registrar of Contractors (Registrar).

On or about May 3, 2024, Payne Custom Concrete LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $32,940.00 for work performed.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation for Alleged Violation of A.R.S. § 32-1154(A)(10).

At the time of the hearings, the parties stipulated that Respondent owed Complainant $32,940.00. The parties entered into a tentative agreement by which Respondent would repay the amount owed.

On or about August 27, 2024, Complainant advised the Office of Administrative Hearings that Respondent had failed to comply with the terms of the agreement.

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. See A.A.C. R2-19-119.

A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.” Morris K. Udall, Arizona Law of Evidence § 5 (1960).

A.R.S. § 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 $32,940.00 for work performed.

Therefore, Complainant established that Respondent violated A.R.S. § 32-1154(A)(10) by failing to pay Complainant $32,940.00 for services or materials rendered in connection with Respondent’s contracting business.

Based upon Respondent’s violation of the provisions of A.R.S. § 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 Respondent’s License No. 336643 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $32,940.00 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $32,940.00 in certified funds, the Registrar may close the Complaint in Case No. 2024-05222.

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, September 24, 2024.

/s/ Tammy L. Eigenheer

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

Integrity Steel Company LLC

DBA: Integrity Steel Co,

[email redacted]

Paul K. Frame

FRAME LAW PLLC

[email redacted]

Payne Custom Concrete LLC

[email redacted]

By: OAH Staff