2024A-05495-NPC-ROC Notice of Hearing & Packet MAILED 2024-05495.pdf

2024A-05495-NPC-ROC · Registrar of Contractors · 2024-07-22

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

L E I Electrical LLC, Case No. 2024-05495

COMPLAINANT, Docket No. 2024A-05495-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Grandview South LLC License No. ROC 326056,

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

HEARING INFORMATION The hearing is set for:

August 28, 2024 1:00 PM Samuel Fox 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 June 18, 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 22, 2024.

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

Copy mailed via USPS First Class mail July 22, 2024 to:

Respondent(s) Grandview South LLC PO Box 159 Arlington, WA 98223-1335

Respondent's Attorney Mark D. Bogard Esq. 1850 N Central Ave, Suite 1200 Phoenix, AZ 85004 Complainant(s) L E I Electrical LLC PO Box 10576 Casa Grande, AZ 85130

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar

Case No. 2024-05495 /

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

May 29, 2024

Via U.S. Mail and Email

Complainant L E I Electrical LLC PO Box 10576 Casa Grande, AZ 85130

Respondent Grandview South LLC PO Box 159 Arlington, WA 98223-1335

Re: Complaint No. 2024-05495

Dear Complainant and Respondent:

The Registrar received a complaint filed against Grandview South 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 June 5, 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 June 5, 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) Nick B Lomeli Street Address City State Zip Code 3009 N. Rockwell Dr. Casa Grande Arizona 85130 Phone Number Email Address [number redacted] [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) Grandview South LLC ROC 326056 Street Address City State Zip Code PO Box 159 Arlington WA 98223-1335 Phone Number Email Address

Name of Person(s) Representing License Charlie Mecon Complaint Information Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $26,995.55 March 31, 2023 Have you filed a civil complaint? No List all specific invoices which have not been paid. Attach additional pages if necessary. #2924 26,995.55

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 Nick B Lomeli 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 Nick B Lomeli LEI Electrical LLC Invoice 3009 N Rockwell ave Casa Grande, AZ 85122 (520)251-0497 [email redacted] BILL TO Casa Blanca Apartments -Coolidge P.O. Box 159 Arlington, Washington 98223

INVOICE # DATE TOTAL DUE DUE DATE TERMS ENCLOSED 2924 03/31/2023 $26,995.55 04/30/2023 Net 30

DATE ACTIVITY QTY RATE AMOUNT

service 1 61,785.15 61,785.15 final billing for Casa Blanca Apartments service 1 -34,789.60 -34,789.60 credit card payment to CES Contact LEI Electrical LLC to pay this invoice. BALANCE DUE Thank you for your business! $26,995.55 LEGAL RECEIVED 06/04/2024

Grandview South, LLC P.O. Box 159, Arlington, WA 98223

June 3, 2024

Arizona Registrar of Contactors Attn: Gail Mathews 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007-2812

RE: LEI Electrical, LLC Complaint No. 2024-05495

Dear Ms. Mathews,

I am in receipt of your letter of May 29, 2024. The following is the response of Grandview South, LLC.

LEI Electrical, LLC (LEI) was retained by Grandview South, LLC (Grandview) to perform the Electrical Contracting duties for the Casa Blanca Apartment project per the attached Subcontract. LEI failed to complete several portions of the Subcontract that Grandview had to complete with Grandview's own personnel. There were several receptacles, switches and light fixtures that were either not installed or inoperable that Grandview had to fix at an estimated cost of $5,000. There were several of the exterior lights that conduit was not installed properly or not installed at all that Grandview had to either fix or install at an approximate cost of $7,000.00. There remains 1 -AC unit that is not electrically wired, 1 - Dishwasher that is wired incorrectly and 4 or 5 other receptacles/ switches that don't work properly that will cost Grandview and estimated $3,000.00 to fix. Per paragraph 5 Scope of Work of the Subcontract, LEI was to supply the Trim which included "Leviton Residential Grade or Better" and what was supplied and installed by LEI was inferior to Leviton at an estimated cost of $5,000.00. Grandview supplied the unit light fixtures that LEI was supposed to install per the Subcontract paragraph 5 Scope of work at an estimated cost of $54,000.00. Buildings 3 & 4 were each delayed 6 -8 months waiting for LEI to complete the rough-in electrical system so that the buildings could progress into insulation and drywall, the Exterior Parking lot lighting took in excess of a year to complete beyond the schedule and per paragraph 8 Schedule of Work and paragraph 9 Commencement of Work, LEI had an obligation to maintain the Contractor schedule and if they failed to do so it would be at a cost of $150.00 per day and this cost is estimated at $50,000. In total it is estimated that LEI cost Grandview in excess of $124,000.00 and therefor Grandview does not feel that it owes LEI the requested $26,995.55. At this time Grandview considers this matter closed.

Sincerely,

Scott Wammack

Cc: William B. Foster, Esq. LEGAL RECEIVED 06/04/2024

SUBCONTRACT This document has Important legal consequences. Prior to its completion or modification, consultation with an attorney is encouraged.

THIS AGREEMENT is made and entered into this 14th day of May, 2020, by and between:

CONTRACTOR:

Grandview South, L.L.C. P. 0. Box 159 Arlington, Washington 98223

SUBCONTRACTOR:

LEI Electrical LLC P.O. Box 10576 Casa Grande Arizona 85122

Contractor, for full, complete, and faithful performance of this Subcontract, agrees to pay Subcontractor the sum of $599,266 plus any applicable tax for completion of the work described in the following paragraph 1. In the event that this contract is for the performance of work on multiple models of homes for the Contractor, then the amount to be paid shall be set forth in the description of the work herein contained.

In consideration therefore, Subcontractor agrees as follows:

1. To furnish and perform all work as described as follows: Including but not limited to the following, Provide electrical rough and trim to two 42 unit buildings and the club house per Casa Blanca plans and specifications dated 2/17/2020

for Grandview South, LLC, in accordance with the plans and specifications by Woods Associates Architects, LLC and BFH Group being built by Contractor, and which plansand specifications have been, and remain available to Subcontractor.

2. To be bound by all laws, government regulations, and orders, to the extent of the work herein subcontracted, which provisions are hereby incorporated by reference, and all of the terms and conditions of this Subcontract.

3. To provide all supervision, materials, labor, supplies, and equipment for the project identified in the preceding paragraph 1, as further identified in the following paragraph 5.

4. To maintain the job site in a neat and clean condition on a daily basis.

Subcontract LEGAL RECEIVED 06/04/2024

5. Scope of Work. Subcontractor agrees to commence Subcontractor's Work as herein described, and to perform and complete such work in accordance with plans and specifications for each model of home herein described, and under the general direction of Contractor, which work is:

Included but not limited to the following, Provide rough electrical for 84 units and the club house. This is to include 8) 11 meter packs, SER runs from the meter to the units, Trim which is to include plugs and switches (Leviton Residential Grade or better). Lighting to be per plan any deviation to be approved by the owner and the engineer. All work to be done per Casa Blanca Electrical Plan dated 2/17/2020. Price to include all heaters, wiring for corridors and house lighting, exit signs emergency lights and parking lot lighting.

6. Change Orders. a. Contractor may, without invalidating this Subcontract, order in writing extra work or make changes by altering, adding to, or deducting from the work and the Subcontract price shall be adjusted accordingly. All such work shall be execute(:! under the conditions hereof, except that any claims for extensions of time caused thereby must be agreed upon at the time of the ordering such change. b. Subcontractor shall make no claims for extras unle$S the same shall be agreed upon in writing by Construction Manager prior to the performance of any such extra work. Requests for Change Orders shall be made directly to the Construction Manager, and not to subcontractors or employees of the Construction Manager. A written change order will be on a form prepared by Construction Manager, and shall state the effect of the modification upon the contract price and the completion date. Agreement of the Construction Manager shall only be effective if obtained from the person signing this Subcontract on behalf of Contractor. No other person employed by Contractor shall have the authority to execute change orders on behalf of Contractor other than the person signing this Subcontract. c. In the event the parties are unable to agree as to the cost of the change order, the Subcontractor shall not complete the work contemplated under the change order. d. If additional work has been fully accepted by Contractor, payment shall be made to Subcontractor in the normal course of payments during the month following completion of the work.

7. Nature of Work. Subcontractor has satisfied itself as to the nature and location of the work, the character, kind and quantity of material to be encountered, the character, kind and quantity of equipment needed, the location, conditions and other matters which can in any manner affect the work under this Subcontract Agreement, and acknowledges that Subcontractor has had a reasonable opportunity to examine the site, and this Subcontract. Prior to commencing work, Subcontractor shall examine the site and any surfaces upon which work is to be performed, and shall notify Contractor in writing of any conditions which might adversely effect its work; failure to do so will constitute a waiver of entitlement to any additional compensation or contract time arising out of such conditions. Such waiver shall

Subcontract -2- LEGAL RECEIVED 06/04/2024

not apply to latent or hidden conditions unknown to Subcontractor following a reasonable examination, and which could not have been discovered by Subcontractor after a reasonable inspection. This clause shall not be understood to relieve Subcontractor of any additional notice requirements under this Subcontract.

8. Schedule of Work. Time is of the essence. Subcontractor recognizes that changes may be made in the Schedule of Work by Contractor and agrees to comply with such changes without additional compensation. Subcontractor shall coordinate its work with all other contractors, subcontractors, and suppliers on the Project so as not to delay or damage their performance, work, or the project.

9. Commencement of Work. The subcontractor will commence the work included within this subcontract upon 5 working days notice to subcontractor. In the event subcontractor is unable to commence the work within said must respond within 24 hours of receipt of the notice from Contractor. If subcontractor fails to respond, the schedule shall be deemed accepted by the subcontractor. In the event the subcontractor notifies the Contractor on two (2) occasions that it is unable to commence the work in the time set forth in the notice, this contract may be terminated by Contractor at its sole and exclusive discretion. In the event that Subcontractor fails to commence the work in accord with the notice provided pursuant to this section, subcontractor shall pay to Contractor the sum of $150.00 per day for each property that subcontractor fails to commence

10. Sub-tier Subcontractors. Any sub-tier subcontractor shall be bound to Subcontractor to the same extent Subcontractor is bound to Contractor. This form may be used for sub-tier subcontr�cts and when so used, the term Contractor shall mean Subcontractor and the term Subcontractor shall mean sub-tier Subcontractor. The subcontractor shall not assign any of its rights or obligations under this Subcontract without the prior written approval of the Contractor first received.

11. Housekeeping and Safety. Subcontractor shall regularly, at a minimum on a daily basis, remove all refuse, waste, and debris produced by its operation. Refuse shall not be permitted to accumulate to the extent that it interferes with free access to the work site or creates a safety concern. Avoidance of safety hazards through good housekeeping is a material part of Subcontractor' s obligations. In the event of Subcontractor's failure or refusal to meet these requirements, refuse may be removed by Contractor and charged against the account of Subcontractor, provided that Subcontractor has received 24 hours prior written notice. In the event of the existence of a safety hazard, Contractor may proceed as above without prio.r notice. In the event that Contractor performs any of Subcontractor's duties contained in this section, the work performed by Contractor will be performed at the rate of $50.00 per hour, with a two-hour minimum.

Subcontractor shall take all necessary safety precautions pertaining to its work and the conduct thereof, including but not limited to compliance with all applicable laws, ordinances, rules, regulations and orders issued by a public authority, whether federal, state, local or other, the federal Occupational Safety and Health Act, the Washington Industrial Safety

Subcontract -3- LEGAL RECEIVED 06/04/2024

and Health Act, and any safety measures requested by Contractor. Subcontractor shall at all times be responsible for providing a safe work site and responsible for the safety of all personnel, equipment and materials within Subcontractor' s care, custody or control. Subcontractor shall promptly provide Contractor with written notice of any safety hazard or violation found anywhere on or adjacent to the construction site.

12. Subcontractor Employer. Subcontractor has the status of an employer as defined by the Industrial Insurance, Workers' Compensation, Unemployment Compensation, Social Security, and other similar acts of the federal, state, and local government. Subcontractor shall withhold from its payroll applicable Social Security taxes, Workers' Compensation and Unemployment Compensation contributions, and withholding taxes and pay the same; Contractor shall in no way be liable as an employer of, or on account of, any employees of Subcontractor. Before final payment is made under this Subcontract, Subcontractor shall furnish Contractor affidavits certifying that it has complied with these laws, rules and regulations. Subcontractor hereby agrees to indemnify Contractor for any and all liability under such laws arising from the work performed under this Subcontract.

13. Insurance. Subcontractor shall, at its own expense, procure insurance coverage equal to or greater than the minimum limits including any endorsements specified in the attached "Exhibit A". Subcontractor shall furnish to Grandview South, LLC evidence of this insurance in the form of a certificate of insurance and include a copy of all applicable endorsements as required as outlined in the attached "Exhibit A". Subcontractor shall maintain products arid completed operations liability insurance coverage for not less than two year following the completion of the project. The Subcontractor's general liability policy shall have a deductible amount of not greater than $5,000 per occurrence. Upon request, the Subcontractor shall provide a list of exclusions contained within their policy and provide a five-year loss run report as well as open, closed, pending or potential reserves or litigation. The insurance carrier.for the Subcontractor must have an AM Best rating of A- VII or better. Annually, the Subcontractor shall supply Contractor with a new and replacement Certificate of Insurance.

No insurance will be cancelled without thirty (30) days prior written notice to Grandview South, LLC. The Subcontractor will be in breach of contract for failure to timely supply and maintain proper insurance as warranted under this Master Agreement and evidenced by the certificate provided. If Subcontractor hires lower tier subcontractors all of the requirements of this contract shall also apply to them and Subcontractor will be responsible to maintain certificates from the lower tier subcontractor's complying with these requirements. Contractor reserves the right to ask for copies of your lower tier subcontractor's certificates at any time. 14. Materials. Materials delivered by or for Subcontractor and intended to be incorporated into the construction hereunder shall remain on the job site and shall become

Subcontract -4- LEGAL RECEIVED 06/04/2024

property of Contractor upon payment, but Subcontractor may repossess any surplus materials remaining at the completion of the contract. All scaffolding, apparatus, ways, works, machinery, and plants brought upon the premises by Subcontractor shall remain his property. It shall be Subcontractor's responsibility to unload, store, and protect its materials, to bear the risk of loss thereof, and to protect such material against loss until actually incorporated into the work, and until the work is accepted, even though title thereto may previously have passed to the Contractor under the preceding provisions, except that Subcontractor shall not bear that portion of such loss to the extent is arose out of the fault of Contractor or its employees.

Subcontractor warrants that all materials supplied shall be equal or superior to that specified in the contract documents. Subcontractor shall provide to Contractor all operation and maintenance manuals, warranties and information material for all equipment, appliances and systems installed. The subcontractor shall not substitute any materials in lieu of those specified by Contractor/Construction Manager without first obtaining Contractor's or Construction Manager' s written consent for the substitution.

Materials condemned by Contractor/Construction Manager as failing to confonn to industry standards, worked or not, shall upon notice from Contractor/Construction Manager be immediately removed by Subcontractor. Failure of Contractor/Construction Manager to immediately condemn any work or materials as installed shall not in any way waive Contractor's right to object thereto at any subsequent time.

15. Takeover. If Subcontractor refuses or fails to supply enough properly skilled workers or materials to maintain the schedule of work, refuses or fails to make prompt payment to sub-subcontractors or suppliers of labor, material or services, fails to correct, replace, or re execute faulty or defective work done or material furnished, disregard the law, ordinances, rules, regulations or orders of any public authority having jurisdiction, files for bankruptcy, or is guilty of a material breach of this Subcontract, and fails to correct the default and maintain the corrected condition within 48 hours of receipt of written notice of the default, then Contractor, without prejudice to any rights or remedies otherwise available to it, shall have the right to any or all of the following remedies: a. Supply such numbers or workers and quantity of materials, equipment, and other facilities as Contractor deems necessary for the completion of Subcontractor' s work, or any part thereof, which Subcontractor has failed to complete or perform after the above notice, and to charge the cost thereof to Subcontractor who shall be liable for the payment of same including reasonable overhead and profit. b. Contract with one or more additional subcontractors to perform such part of Subcontractor's work as Contractor shall determine to provide prompt completion of the project and charge the cost thereof to Subcontractor. c. Withhold payment of any monies due or to become due Subcontractor pending corrective action to the extent required and to the satisfaction of Contractor. d. Terminate this Subcontract, use any materials, implements, equipment, appliances, or tools furnished or belonging to the Subcontractor to complete

Subcontract -5- LEGAL RECEIVED 06/04/2024

Subcontractor's work and furnish those materials, equipment, and/or employ such workers as Contractor deems necessary to maintain the orderly progress of the work; Subcontractor's equipment shall only be utilized when equivalent equipment is not locally available to lease and will not be supplied by a substitute subcontractor and when procurement of substitute equipment will not delay completion of the project. All of the costs, including reasonable overhead, profit and attorneys' fees, incurred by Contractor in arranging to and performing Subcontractor's work shall be charged to Subcontractor and Contractor shall have the right to deduct such expenses from monies due or to become due Subcontractor. Subcontractor shall be liable for the payment of any expenses incurred in excess of the unpaid balance of the Subcontract Price. e. In the event of any emergency, Contractor _may proceed as above without notice.

16. Lien Releases. Contractor may require as a condition of any progress payment to Subcontractor that Subcontractor provide to Contractor a conditional lien release executed by Subcontractor and any laborers, material suppliers, or equipment providers. Contractor may require as a condition of final payment to Subcontractor that Subcontractor provide to Contractor an unconditional lien release executed by Subcontractor and any laborers, material suppliers, or equipment providers.

17. Payment. Payment will be made to Subcontractor upon completion of the scope of work. Subcontractor shall submit a certification (invoice), on a certification (invoice) approved by Contractor, to Contractor that the scope of work is completed, which certification must be received by the last day of each month. Within five (5) days of receipt of a certification from Subcontractor, Contractor shall either approve or disapprove such certification for payment. In the event Contractor disapproves the certification for payment, Contractor shall state with specificity in writing the reasons for disapproval of the certification, and shall further state the dollar amount of such certification that will be held by Contractor pending correction and/or completion of the work disapproved by Contractor. All certifications must be actually delivered to Contractor on or before the last day of the month in order to entitle Subcontractor to payment the following month. Certifications delivered by facsimile will not constitute delivery and will not be accepted. Certifications not on the form approved by Contractor will not be accepted for payment. Subcontractor shall be entitled to payment upon properly received and approved certifications for payment upon the tenth (10th) day of the month following the receipt of the certification for payment by Contractor.

17. Retention. Contractor shall be entitled to withhold from each payment an amount equal to ten percent (5%) of the amount due. Contractor shall pay all amounts-so retained within thirty (30) days of the final acceptance of Subcontractor's work by Contractor.

18. Warranty. Subcontractor warrants its work against all deficiencies and defects in materials and/or workmanship and agrees to remedy any deficiencies without cost to

Subcontract -6- LEGAL RECEIVED 06/04/2024

Contractor for a period of one (1) year from the date of the homeowner' s occupancy of the premises.

19. Attorneys Fees. In the event the Contractor consults with an attorney in connection with the default of the Subcontractor, or with regard to the enforcement of any of Contractor' s rights under this Subcontract, or if litigation is commenced to enforce any of the terms, provisions, or conditions of this Agreement, the prevailing party shall be entitled to recover, in additions to the remedies provided herein, his reasonable attorney's fees and costs incurred in connection therewith, and preparation therefor, and on appeal therefrom, which amounts shall be included in any judgment entered against the non-prevailing party.

20. Indemnification. Subcontractor agrees to defend, indemnify and hold the Contractor and Contractors affiliates, subsidiaries, directors, officers, employees, agents, and their representatives harmless from, resulting from or connected with services performed, or to be performed, under this Subcontract by Subcontractor, or Subcontractor's agents or employees to the fullest extent permitted by law and subject to the limitations provided below.

Subcontractor' s duty to indemnify Contractor shall not apply to liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of Contractor or Contractor's agent or employees.

Subcontractor's duty to indemnify Contractor for liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the concurrent negligence of (a) Contractor or Contractor's agents or employees; and (b) Subcontractor of Subcontractor's agent or employees, shall apply only to the extent of negligence of Subcontractor or Subcontractor' s agents or employees.

Subcontractor specifically and expressly waives and immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. further, the indemnification obligation under this Subcontract shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable to or for any third party under workers' compensation acts, disability benefits acts, to other employee benefits acts; provided Subcontractor' s waiver of immunity by the provisions of this paragraph extends only to claims against Subcontractor by Contractor, and does not include, or extend to, any claims by Subcontractor's employees directly against Subcontractor.

Subcontractor's duty to defend, indemnify and hold harmless shall include, as to all claims, demands, losses and liability to which it applies, Contractor's personnel related costs, reasonable attorneys' fees, court costs and all other claim related expenses.

21. Miscellaneous.

Subcontract -7- LEGAL RECEIVED 06/04/2024

a. Merger. This Agreement supersedes any and all agreements between the parties hereto regarding the subject property which are prior in time to this Agreement. Neither Purchaser, Seller nor Agent shall be bound by any understanding, agreement, promise, representation, or stipulation, express or implied, not specifically stated herein. b. Time is of essence. Time is of the essence of this Agreement. c. No verbal agreements. There are no other verbal or other agreements which modify or affect this Agreement. d. Notice. Any notices required by this Agreement shall be deemed delivered to the party receiving such by mailing of the same United States Mail, postage prepaid, to the regular business address of the recipient, or to such other address as the parties may, from time to time, specify in writing.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date set forth above.

CONTRACTOR:

Grandview South, L.L.C. --7 By: � Scott Wammack Managing Member

!tFht Date Executed: --1t .._,y...,'r_____

SUBCONTRACTOR: LEI Electrical LLC

By: A)d, U� (Nick Lomeli)

Date Executed: -------- 1/18/2021

Subcontract -8- LEGAL RECEIVED 06/04/2024

EXHIBIT A GRANDVIEW SOUTH, LLC SUBCONTRACTOR INSURANCE REQUIREMENTS

Subcontractor shall maintain during the term of this subcontract insurance coverage(s ) in the following minimum amounts and Subcontractor shall, before commencing work under this Subcontract, furnish to Grandview South, LLC certificates of insurance with current policy effective dates and except for the Worker's Compensation, name Grandview South, LLC Contractor and Grandview's Casa Blanca, LLC Owner, and such others as Grandview South, LLC may designate as additional insured(s) and include a primary and non-contributory and waiver of subrogation endorsement(s) in their favor (see below for further information on the endorsements being required):

General Liability $1,000,000 per Occurrence $2,000,000 Products Completed Operations $2,000,000 Aggregate

Workers Compensation $1,000,000 per Employee Including Employers Liability/Stop Gap $1,000,000 per Claim $1,000,000 by Disease

Auto Liability $1,000,000 Combined Single Limit Including Hired & Non-Owned Liability

Umbrella Liability $1,000,000 per Occurrence"

*The Contract Value Will Dictate the Limit Required Unless Otherwise Specified or Negotiated: Projects Under $500,000 $1,000,000 Projects Over $1,000,000 $2,000,000

Subcontractor's General Liability Shall (A Copy of All of the Required Endorsements MUST BE ATTACHED to the Certificate of Insurance):

1. Name Grandview South, LLC, Contractor, and Grandview's Casa Blanca, LLC Owner, and such others as Grandview South, LLC may designate as Additional Insured. Additional Insured Endorsement Must Be CG2010 11/85 or Equivalent to Include Coverage for Both on Goi ng and Completed Operat ions 2. Contain a Primary Non-Contributory Endorsement 3. Contain a Waiver of Rights of Subrogation Endorsement CG2404 05/09 or Equivalent 4. Contain Per Project Aggregate Endorsement CG2503 05/09 or Equivalent

The Certificate of Insurance Shall S tate/Confirm that "THERE IS NO EXCLUSION FOR RESIDENTIAL OPERATIONS" If there is exclusion for th is type of work the exclusion must be p r ovided for our review.

Subcontract -9- 6/4/24, 2:28 PM State of Arizona Mail - Complaint No. 2024-05495 LEGAL RECEIVED 06/04/2024

Legal New Mail - AZROC <[email redacted]>

Complaint No. 2024-05495 messages

Scott Wammack <[email redacted]> Tue, Jun 4, 2024 at 11:55 AM To: "[email redacted]" <[email redacted]> Cc: "[email redacted]" <[email redacted]>

Attached is the response to the Notice of No-Pay Compliant that was received via email on 5/28/2024 and US mail on June 3, 2024. This response will be mailed via US Mail today, June 4 as well.

Let me know if there are any questions or if anything else is needed.

Have a great day,

Scott Wammack

Phone: (360) 435-7171

PO Box 159 Arlington, WA 98223

Responce to Complaint 2024-05495.pdf 624K

Legal New Mail - AZROC <[email redacted]> Tue, Jun 4, 2024 at 2:28 PM To: Scott Wammack <[email redacted]> Cc: "[email redacted]" <[email redacted]>

Received, thank you.

Thank you,

Arizona Registrar of Contractors Legal Department

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

https://mail.google.com/mail/b/AEoRXRQBjjXhtv7RXfp5TMNciSk6PZ3EngU3-iBq-JdejJRn6s0x/u/0/?ik=d3afebeda9&view=pt&search=all&permthid=t… 1/2 6/4/24, 2:28 PM State of Arizona Mail - Complaint No. 2024-05495 LEGAL RECEIVED 06/04/2024

[Quoted text hidden]

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No-Pay Complaint Follow-up 2024-05495 message

Gail Mathews <[email redacted]> Fri, Jun 7, 2024 at 1:32 PM Bcc: [email redacted], Gail Mathews <[email redacted]>

Hello,

I am writing to follow up on a No-Pay Complaint that was filed against Grandview South LLC. Have they made any payments or contacted you?

If they have made payments, would you like us to close the complaint? If they have not, would you like us to move forward with issuing a Citation?

The Registrar has received a response (see attached).

Please advise on or before June 14, 2024.

Thank you,

-- Gail Mathews

Legal Assistant 602-771-6804 [email redacted] 1700 W Washington Suite 105 Phoenix, AZ 85007

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20240604 R's Response to No Pay Complaint 2024-05495.pdf 1117K REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-05495 L E I Electrical LLC,

COMPLAINANT, CITATION v. Grandview South LLC License No. ROC 326056, RESPONDENT.

The Registrar issues this Citation to Grandview South LLC, (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by July 3, 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 May 13, 2024, L E I Electrical LLC, (“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 rendered in connection with the licensee's operations as a contractor unless 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 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. 2024-05495. 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 July 3, 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

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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 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 inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 June 18, 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, June 18, 2024 to: Respondent Certified Mail No: [number redacted] Grandview South LLC PO Box 159 Arlington, WA 98223-1335

Copy mailed by USPS First Class mail this same date to: Grandview South LLC PO Box 159 Arlington, WA 98223-1335 of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Complainant L E I Electrical LLC PO Box 10576 Casa Grande, AZ 85130

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. 2024-05495

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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 Non-Payment Complaint Form Departmental Use Only Complaint Number: Mail to: Registrar of Contractors P.O. Box 18243 Phoenix, AZ 85005-8243

Name of Attorney (if any)

Attorney’s Street Address City State Zip Code

Attorney’s Phone Number Attorney’s Email Address

INVOICE # DATE TOTAL DUE DUE DATE TERMS ENCLOSED 2924 03/31/2023 $26,995.55 04/30/2023 Net 30

DATE ACTIVITY QTY RATE AMOUNT

Jaburg & Wilk, P.C. 1850 N. Central Avenue, Suite 1200 Phoenix, AZ 85004 (602) 248-1000 Mark D. Bogard (Arizona State Bar no. 018247) [email redacted] Attorneys for Respondent, Grandview South, LLC REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA L E I Electrical LLC, Case No. 2024-05495 License No. ROC 213847 Complainant, WRITTEN ANSWER TO CITATION v. AND COMPLAINT Grandview South LLC, License No. ROC 326056 Respondent. Respondent Grandview South, LLC (“Grandview”), by and through its undersigned legal counsel, hereby submits its Written Answer to Citation and Complaint to the Registrar’s Citation and denies, objects to, and requests summary dismissal of the sole “no pay” charge asserted in the Citation, for the following reasons: The Citation alleges that “[t]he Registrar investigated this matter and finds cause to charge Respondent with violation of . . . A.R.S. § 32-1154(A)(10) – Failure by a licensee to pay monies in excess of $750” to the Complainant, L E I Electrical, LLC (“Complainant”). (See, Citation, p.1, lns.21-26.) Grandview wholly denies the Citation’s allegations to the extent any wrongdoing, liability, or violation of Arizona contracting laws is asserted or implied against Grandview. The ROC should summarily dismiss the Citation for the reasons set forth herein and in Grandview’s June 3, 2024 written response to the ROC’s May 29, 2024 letter to LEGAL RECEIVED 07/03/2024

Complainant and Respondent. If the Citation is not dismissed, however, Grandview requests an administrative hearing in this matter, wherein Grandview will establish the impropriety and wrongfulness of the underlying complaint and resulting Citation for, inter alia, the following reasons: 1. Complainant’s “Non-Payment Complaint Form,” which appears to be the full recitation of Complainant’s claim, offers no substantiation other than the bare attachment of a single invoice (Invoice no. 2924). That invoice—and thus the Complaint itself—fails to provide any history of the parties’ dealings including Grandview’s offsets and counterclaims arising from Complainant’s improper workmanship and abandonment of and failure to complete its contractual obligations to Respondent. As Grandview explained in its June 3 response letter to the ROC, Complainant owes Grandview (not the other way around) substantial sums in excess of $124,000.00 for the offsets and damages caused by Complainant’s several failures as summarized in the June 3 letter. Grandview’s June 3 letter is attached with this Answer and incorporated herein as though set forth at length. 2. As set forth in Grandview’s June 3 response letter to the ROC and Complainant, no monies are owed to Complainant, and in fact Complainant owes Grandview in excess of $124,000.00. a. Complainant was retained by Grandview to perform certain electrical contracting duties for the Casa Blanca Apartment project per the attached Subcontract for a base subcontract price of $599,266.00. Grandview paid all but $26,995.55 of the base subcontract price. b. Grandview paid approximately 96% of the subcontract price before justifiably withholding and refusing to pay any further sums due to Complainant’s substantial failures to perform and complete significant portions of its work, including but not limited to:

LEGAL RECEIVED 07/03/2024

i. failure to complete several portions of Subcontract, requiring Grandview to complete via other subcontractors or self-perform to the extent permissible under its B-1 license; ii. failure to install certain receptacles, switches, and light fixtures; iii. failure to properly install certain receptacles, switches, and light fixtures; iv. failure to properly install electrical conduit for certain exterior lights; v. failure to properly wire and install at least one air conditioning unit; vi. failure to properly wire and install at least one dishwashing unit; vii. failure to properly install certain “trim” work in accordance with the Subcontract’s specified standards that included “Leviton Residential Grade or Better”; viii. failure to supply and install not less than $54,000.00 in light fixtures that Grandview had to supply and complete installation of via other subcontractors or self-perform to the extent permissible under its B-1 license; and, ix. several substantial delays affecting several portions of the project including buildings 3 and 4 and exterior parking lot lighting, at a cost of not less than $150/day for a total of over $50,000.00 in delay damages alone.; 3. For the same foregoing reasons, Grandview anticipates filing civil suit against Complainant and, assuming it elects to do so, will file that action shortly. 4. For the same foregoing reasons, Grandview is also contemplating a parallel administrative complaint against Complainant to the extent its workmanship and abandonment issues that fall within the ROC’s jurisdiction. 5. It does not appear that the ROC performed an actual investigation here, contrary to the Citation’s assertion, and thus there does not appear to be a proper basis to

LEGAL RECEIVED 07/03/2024

“find cause” for violation of A.R.S. § 32-1154(A)(10) as asserted in the Citation. (Citation, p.1, ln.21.) 6. Complainant is inappropriately using the administrative complaint process for leverage against Grandview’s remaining and still accruing contractual and administrative claims against Complainant. 7. The Citation ultimately concerns a contractual dispute which should be addressed in another, more appropriate venue such as the Arizona Superior Court. It is well-established under Arizona law that administrative proceedings “are not venues for comprehensive litigation over contract rights and obligations.” Shea Connelly Development LLC v. Ariz. Registrar of Contractors, 2020 WL 6503616, at *3 (Ariz. App. Nov. 3, 2020), citing Stonecreek Bldg. Co., Inc. v. Shure, 216 Ariz. 36, 40 ¶ 18 (App. 2007). The underlying non-payment complaint and resulting Citation turn squarely on the contractual rights and obligations of the parties. Additional legal defenses and counterclaims are also implicated, such as “first to materially breach” and offset, which are generally not considered in administrative hearings. OAH is simply not the best forum to adjudicate this type of dispute. By contrast, the Arizona Superior Court routinely addresses comprehensive contract disputes as presented here, and the legal theories inherent in them. The civil court’s disclosure and discovery rules facilitate developing the factual record, claims and defenses. Moreover, compelling an administrative hearing will only result in needless duplication of costs for the parties because the same issues can and most likely will be litigated in the Superior Court. 8. Compelling such an obviously civil action-appropriate claim to hearing via the ROC’s (and associated Office of Administrative Hearings) administrative process is contrary to the ROC’s longstanding policy of refusing to interlope into matters more appropriate for the civil courts. 9. Grandview reserves the right to raise any and all legal and factual defenses at hearing.

LEGAL RECEIVED 07/03/2024

For the foregoing reasons, Grandview respectively requests the ROC to summarily dismiss the Citation in favor of the parties’ resolving their respective disputes through the Arizona Courts or private arbitration. If the Citation is not dismissed, Grandview hereby requests an administrative hearing in this matter to further contest the impropriety and wrongfulness of the underlying complaint and resulting Citation. DATED this 3rd day July, 2024. Jaburg & Wilk, P.C. /s/ Mark D. Bogard Mark D. Bogard Attorneys for Grandview South, LLC The foregoing was E-FILED with the AZROC and copied to Complainant on July 3, 2024: Arizona Registrar of Contractors Legal Department, Attn. Robert Stirling, Asst. General Counsel via email only: [email redacted] L E I Electrical, LLC Attn. Nick B. Lomeli via email only: [email redacted] Complainant Filed by: /s/ Mark D. Bogard

7/3/24, 3:37 PM State of Arizona Mail - Case no. 2024-05495 (License no. ROC 326056) - Grandview South LEGAL Answer to Citation RECEIVED & Complaint 07/03/2024

Answers - AZROC <[email redacted]>

Case no. 2024-05495 (License no. ROC 326056) - Grandview South Answer to Citation & Complaint message

Mark D. Bogard <[email redacted]> Wed, Jul 3, 2024 at 2:06 PM To: "[email redacted]" <[email redacted]> Cc: "[email redacted]" <[email redacted]>, "Andreana T. Guffey" <[email redacted]>

Dear ROC Legal Department,

We are attorneys for the Respondent in the above-referenced matter, Grandview South, LLC (ROC lic. no. 326056), and hereby electronically file its Answer to the Citation issue in case no. 2024-05495. A pdf copy of that Answer is attached here.

Please copy me on any further communications from the ROC to the Respondent in this matter.

Thank you,

Mark Bogard

Attorney for Respondent, Grandview South, LLC

Mark D. Bogard

Partner | Jaburg Wilk

1850 North Central Avenue, Suite 1200 Phoenix, Arizona 85004

Direct: 602.248.1058 | Main: 602.248.1000

Bio Page | Email: [email redacted] | www.jaburgwilk.com

This communication is intended only for the individual or entity to whom it is directed. It may contain information that is privileged, confidential, or otherwise exempt from disclosure under applicable law. Dissemination, distribution, or copying of this communication by anyone other than the intended recipient, or a duly designated employee or agent of such recipient, is prohibited. If you have received this communication in error, please notify us immediately by telephone at (602)248-1000, or via e-mail, and delete this message and all attachments thereto.

https://mail.google.com/mail/b/AEoRXRT1dmmeLE-t9xYOxxs7kuiJ9G3qwfGAtwYsDYEEmL6vm9pD/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 1/2 7/3/24, 3:37 PM State of Arizona Mail - Case no. 2024-05495 (License no. ROC 326056) - Grandview South LEGAL Answer to Citation RECEIVED & Complaint 07/03/2024

2024-07-03 Answer to Citation - Grandview South adv. LEI Electric.pdf 142K

https://mail.google.com/mail/b/AEoRXRT1dmmeLE-t9xYOxxs7kuiJ9G3qwfGAtwYsDYEEmL6vm9pD/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 2/2 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