2024A-06902-NPC-ROC Notice of Hearing & Packet MAILED 2024-06902.pdf

2024A-06902-NPC-ROC · Registrar of Contractors · 2024-08-21

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Etico Stone LLC, Case No. 2024-06902

COMPLAINANT, Docket No. 2024A-06902-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE CSE and Associates Inc. DBA: C.S. Edmunds Homes License No. ROC 116885,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

October 9, 2024 1:00 PM Amy Haley 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 July 30, 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 August 21, 2024.

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

Copy mailed via USPS First Class mail August 21, 2024 to:

Respondent(s) CSE and Associates Inc. DBA: C.S. Edmunds Homes 8776 East Shea Blvd Ste.106-622 Scottsdale, AZ 85260 Respondent's Attorney Brittany M De Robertis, Esq. Two North Central Avenue, Suite 2000 Phoenix, AZ 85004 Complainant(s) Etico Stone LLC 12455 N 92nd Drive bldg C Peoria, AZ, AZ 85381

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. 2024-06902 /

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

July 5, 2024

Via U.S. Mail and Email

Complainant Etico Stone LLC 12455 N 92nd Drive bldg C Peoria, AZ, AZ 85381

Respondent CSE and Associates Inc. DBA: C.S. Edmunds Homes 8776 East Shea Blvd Ste 106-622 Scottsdale, AZ 85260

CSE and Associates Inc. DBA: C.S. Edmunds Homes 20645 N Pima Rd Ste 195 Scottsdale, AZ 85255-5599

Re: Complaint No. 2024-06902

Dear Complainant and Respondent:

The Registrar received a complaint filed against CSE and Associates Inc. DBA: C.S. Edmunds Homes 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 byJuly 12, 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 July 12, 2024 and will review Respondent’s response, if one is submitted.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 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 1700 W Washington St. Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 LEGAL RECEIVED 07/12/2024

For its Response to the July 5, 2024 Notice of Complaint filed by Etico Stone, LLC

(“Etico”), CSE & Associates, Inc. (“CSE”) hereby responds as follows:

I. The Project

This dispute arises out of the construction of a single-family residence located at 3994

Rolling Stock Way, Wickenburg, Arizona 85390 (the “Project”). The Project owner is Michael

James Nadasky. CSE was the general contractor. Etico was a masonry contractor.

II. CSE Lacks Capacity to Pay

CSE lacks sufficient funds to pay Etico. CSE’s May 2024 bank statement shows an

ending balance of $129.07:

LEGAL RECEIVED 07/12/2024

///

LEGAL RECEIVED 07/12/2024

The June 2024 bank statement shows an ending balance of $119.07:

The only withdrawals made in May and June were automatic debits by Wells Fargo for

monthly service fees.

III. The Project Owner Failed to Pay CSE

The Project Owner has failed to pay CSE $135,964.00 for work performed. Of that

amount, $16,576 is owed to Etico.

LEGAL RECEIVED 07/12/2024

IV. Conclusion

CSE lacks sufficient capacity to pay Etico and CSE has not received payment from the

Owner for the work performed at the Project.

DATED this 12th day of July, 2024.

HOLDEN WILLITS PLC

By /s/ Barry A. Willits Barry A. Willits Brittany M. De Robertis Attorneys for Respondent CSE & Associates, Inc ORIGINAL emailed this same date to: Arizona Registrar of Contractors Attn: Legal Dept. 1700 W. Washington St., Ste 105 Phoenix, AZ 85007 [email redacted] /s/ Brittany M. De Robertis

7/15/24, 4:40 PM State of Arizona Mail - Etico Stone LLC v. CSE & Associates Inc. / Complaint No. 2024-06902 LEGAL RECEIVED 07/12/2024

Legal New Mail - AZROC <[email redacted]>

Etico Stone LLC v. CSE & Associates Inc. / Complaint No. 2024-06902 messages

Brittany DeRobertis <[email redacted]> Fri, Jul 12, 2024 at 2:50 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Barry Willits <[email redacted]>, Clara Wiklanski <[email redacted]>

Ms. Mathews,

Attached is CSE & Associates’ Response to Etico Stone, LLC’s Complaint.

Thank you,

Brittany M. De Robertis, Esq.

HOLDEN | WILLITS PLC

N. Central Ave., Suite 2000

Phoenix, AZ 85004

(602) 508-6210

2024-07-12 Response to Etico ROC Complaint.pdf 359K

Legal New Mail - AZROC <[email redacted]> Mon, Jul 15, 2024 at 4:39 PM To: Brittany DeRobertis <[email redacted]> Cc: "[email redacted]" <[email redacted]>, Barry Willits <[email redacted]>, Clara Wiklanski <[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!

[Quoted text hidden]

https://mail.google.com/mail/b/AEoRXRRz88i1iUcVtHytfYR4lexgU27CBG0ER8yM8DbjmZfJstVQ/u/0/?ik=d3afebeda9&view=pt&search=all&permthid=… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-06902 Etico Stone LLC,

COMPLAINANT, v. CITATION CSE and Associates Inc., DBA: C.S. Edmunds Homes, License No. ROC 116885, RESPONDENT.

The Registrar issues this Citation to CSE and Associates Inc., DBA: C.S. Edmunds Homes (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by August 14, 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 June 17, 2024, Etico Stone 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

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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. 2024-06902. 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 August 14, 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 July 30, 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, July 30, 2024 to: Respondent Certified Mail No: [number redacted] CSE and Associates Inc. DBA: C.S. Edmunds Homes 20645 N Pima Rd Ste 195 Scottsdale, AZ 85255-5599

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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: Respondent CSE and Associates Inc. DBA: C.S. Edmunds Homes 8776 East Shea Blvd Ste 106-622 Scottsdale, AZ 85260 CSE and Associates Inc. DBA: C.S. Edmunds Homes 20645 N Pima Rd Ste 195 Scottsdale, AZ 85255-5599

Brittany M De Robertis, Esq. Holden Willits PLC Two North Central Avenue, Suite 2000 Phoenix, AZ 85004

Complainant Etico Stone LLC 12455 N 92nd Drive bldg C Peoria, AZ, AZ 85381

Case No. 2024-06902 / 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 by Investigations 6/17/2024 2024-06902

Non-Payment Complaint Form Departmental Use Onlv Complaint Number: Mail to: Registrar of Contractors . r(IrI.

P.O. Box 78243 Phoenix, A285005-8243 Person Business Name Full Name (First Middle Last) ROC License Number(s) (if any) Etico Stone LLC 328976 Street Address City State Zip Code 12455 N 92nd Drive bldg C Peoria Az. 85381 Phone Number Email Address 623412-4163 [email redacted] I consent to receive communications electronically in connection with this case. Yes E No tr

Name of Attomey (if any)

Attorney's Street Address City State Zip Code

Attomey's Phone Number Attomev's Email Address

Name (as shown on contracts, invoices, etc.) ROC License Number(s) CSE and Associates lnc 1 16885 Street Address City State Zip Code 8776 E Shea Blvd ste 106-622 Scottsdale M 85260 Phone Number Email Address disconnected Name of Person(s) Representing License

Principal Amount Due (excluding interest and fees) Contract Date (if applicable) $16,576.00 [number redacted] Have you filed a civil complaint? Yes D (lf yes, provide a copy of the civil iudgment) No ! no List . Attach additiona I pages if necessary.

lnv# CWR 349

Certification I certifu, upon int'ormation and belief, that the aboae-named licensee has failed to pay monies in excess of seoen hundred fifty dollars when due for materials or serTJices rendered in connection with the licensee's lperations as a clntractor. I further certifu, upon information and belief, that the aboae-named licensee has the capacity to pay, or has receiaed sufficient monies as payment for the particular construction work or which the seraices or were A.R.S 32- 0 Printed Name Date Barbara Willhite 6t1712024 & I am the Complainant in this Complaint Form or Complainant's duly authorized representatiae. I declare under penalty of periury that the information contnined in this Form is true and correct to the best of my knowledge. I further certifu 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 or in the tion the or other will, attend and to Printed Name Date Barbara Willhite [number redacted] Received by Investigations 6/17/2024 2024-06902

TIC ADDENDUM #1

Etico stone, LLc (subcontractor) and csE & Associates (,'contracto/,) agree this addendumshallbeincorporatedintott.eirs,b.ffi wickenburg Ranch Lot 349 ("Projea"). lf there is any conflict, inconsistency, or variance among the Contract Documents, this Addendum shallgovern the Subcontract.

I Llens, Bonds, Financlals. Nothing within this Subcontract shall be construed or interpreted in any way to affect or alter subcontracto/s rights to file liens and/or bond claims on the Project for non-payment per the terms ofthis contract. Subcontractor shall not be requir€d to supply or post any bond of any kind at any time.

lndemnification' subcontractor has no duty to defend or indemnify an Additional lnsured for claims that arise out of the sole negligence of such lndemnltee. Subcontractors mere presence on thejobsite does not constitute any obligation to defend and indemnify any indemnitee unless subcontractors actions or failure to act results in a claim for Bodily lnjury or property Damage.

Property lnsurance. owner shall purchase and maintain Builders Risk insurance upon the Work at the Site in the amount of thefull replacement costthereof. This insurance shall includethe interests of Etico stone, LLc, any sub-subcontractors or any entities that have an insurable interest in the work. The Owner, Etico Stone, LLCand any sub-subcontractors agree to a mutual waiver of subrogation against each other for loss or damage to the extent covered by such insurance.

Disputes and Attorney's Fees' The venue for any dispute resolution proceeding shall be the state or federa I courts having jurisdiction over Maricopa County, Arizona, all Metro Phoenix cities, or the county in which the proiect is located.

Mlscellaneous. Contractor shall provide reasonable notice of any changes or modifications to the Work schedule. Subcontractor shall be entitled to compensation for any additional costs or resources required to accommodate such schedule changes, unless such changes are caused solely by underperformance of Subcontractor. Additional compensation shall be paid by Change Order,

A mark-up of twenty percent (20%) for indirect costs, overhead and profit shall be applied to all Change Orders unless oth€rwlse agreed in writing prior to work being requested.

No employee or other such person affiliated with Subcontractor shall assume any personal liability, whatsoever, arising from the Subcontract.

Subcontractor is not bound by any terms and conditions of the Prime contract unless Prime contract has been reviewed and accepted by Subcontractor.

Contractor has no right at any time to take possession of Subcontracto/s equipment or appliances. Contracto/s remedies are limited to this Project and this subcontract.

12495 l{ 92nd O.tv., Bldg C t107, Peorl., AZ Es:t!l, . OfR.! lSZBl 856-S2U] . F.r (6231 ,a&3845 . lnlooetlcot.am.com . wrw..tlcocor5t.uctlongroup.Eoh 'Qe.ltty Hven Pmrlr on lr Bulldlng Tofiorou/a Comrnunlllet' Roc 328976 cn.31

Confidential Page 3 of 3 Etico Stone, LLC Received by Investigations 6/17/2024 2024-06902 NofE: Etico stone LLc ,s not responsible lor ony colot votidtlons ond or dlscrepancies thdt moy occw due to the monufocturldg prccess. Somple Bootds do not depict the percentdge of cotor ond/ot shopes ol stone.

It is unde6tood ond qgreed thot Etlco stone, LLC is rclieved ol ony obligotion to dqend ond indemn y the owner ot oddltiondl ao ony cloim lor Bodily tnJury, Prcpe.ty Domoge or ony othet type of clolm arlsiog out of, cqused by, relqted to, ot in whole ot in pon, the conve'ron ol ony opqrtments or other resrdentiot bufldrngs ot itructwe from commerciol townhguse, or other ow n ed m u lti-fo mi ly re side oal q I stru ct u res,

LI L) Etlco -CsE & A3iocffi! Date

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Page 2 of 3 Etico stone, LLC Confidential Received by Investigations 6/17/2024 2024-06902

Friday, January 20, 2023

CSE & Associates 20545 N Pima Rd 1195 TIC STONE, LI-C Scottsdale, Az E5255 Phone: {480) 473-4683 CONFIDENTIAL INFORMATION Email: [email redacted]

DO NOT DISCLOSE Attn: Scott Edmonds ROC 328976 CR-31 ProJect: Wlclcnburg Rrnch l,ot 349 12455 N.92nd Drive, EldB C ft07 Re: lnhlalstone gld Peorla, AZ 85381 Loc: Wickenburg , AZ 85390 Ofllce: 623.866.5281

Prcposal: Stone Work Authored By: Eff€dlve O.tet AIlStone installed on or after r/2012023 8y Pei Pl.nr Dated: February 11, 2021 Erplralion D.te 30 days after the d.te of proposal 'soles tox is not in'lud.d on thls Ptoposol. tl you p.ottldc o cuEnt 5@5 lorm to Etko thoo sohs tox wtlt not opply ro thb proposot. tl you do llot how o 5ot)s sdhs tox thon oppUcoble soles aox botcal on cutftnt .!tet Dt) Nc nME OF WORXdl bc opptied, ot to chongc. ',,?lubhct Description Price Ease Exterior Stone Veneer s16,575.00

Pdce lncludeil Over prepared cementitious substrate by othe.- no pglnt Palnted substrate will incur addltional costs Orystack tr Per Hlthlighted Plans & Elevattons provtded Groutlolnt I rI Stone 8id as: Eldo.ado Ston. Color of Grout Grcy stn Veneer 0t6 - Clltteston. M.rqulto - D4Etsckcd Brown 610 Amerlm Polymodlllrd Monrr/cr3y I O.tme.l054 Stone 8id to weep screed I Limcitone(Whlte) 3253

Prlce Excluslon.: I Any Site or interior workt Any Precast or Cante.ra P.oducts Soldler couEes or Rowlock Stone or Erick trlm not lleted above Veneer 5ealant oecoratlve Tlle Saler Tax Psylnenl Tenns: Standard Payment Plan

OTEI All stone debrit asso.lated with lhls project to be thrown away by Etlco employees into dumpster provlded by curtomer. Etico wtll not haul away stone debris-

rccipient ol thlt Norysot in o atmely nonncr. lh the .ve.t ony chonges to th. ptoposed gokn orc notte, this bld ond cooltod moy bc nodilied o. supplement.d or n.c.ttory- Acceptooce of tha ptices contoined hercia constiirtas ogreemanl ol oll tha tcrns ond condillods in lhe obove seclions-

Page 1 of 3 Etico Stone, LLC confidential Received by Investigations 6/17/2024 2024-06902

CSE-Wickenburg Purchase Order 8776 E Shea Blvd, Suite 106-622 Scottsdale, AZ 85260 Dale P.O. No.

2t2l !x023 2019

Vendor Ship To Iltico Stone LLC 349 - Silver Ridge Rcsidcntial l.l.C 12455 N 92nd Dr. BldB C I,arccl Q Lot 349- Clinnabar I'corio. AZ 85381 1994 Rollding Stock Way Wickcnburg AZ 85390

Item Description Qtv Rate Amount MasonD Stonc (E... Ms-sonry Slonc (Exlerior) - I t6 576 00 16.576.00

./ 1l^t i E 1,0. \ su* ws

Total $ r6.576.fi) Received by Investigations 6/17/2024 2024-06902

Etim Stone LLC Inyoic.! C1VR 349

Euc STONE 12455 N 92nd Dr Bldg C Peorh AZ 85381 hElc. D.t ! 22012024 to. Pcrlod Brdl.g: 2/202024 Due O.te: 42512024 O6men G€00001 Pnoj.d: ClrR f,49

To: Plljed: CSE & A&soclates Inc Wdenburg Lot 349 8z76 E Shea Blvd #106622 Wid<enburg AZ S@tbdale AZ 85260

€IrrEnt P.l!Y[oua C.l'l'Elrt Orl'lnt Corrb'..t Cornpl€tld OomplctGd Ol.'urt Rat hrga UOM lnorrft Tom EA 1.00 0.00 1.00000 Lot 349 16,575.00 0.00 16575.0000 16,t6.00 0,00 0.00 16,576.00

Ihvolce Totals! 16,576.00 0.00 16,575.00 0.00 0.00 16,576.00

ot Du.E 10575,00 Received 8/14/2024 ROC Legal

HOLDEN WILLITS PLC Two North Central Avenue, Suite 2000 Phoenix, Arizona 85004 Telephone (602) 508-6210 Facsimile (602) 508-6211 Barry A. Willits (State Bar No. 016091) [email redacted] Brittany M. De Robertis (State Bar No. 035050) [email redacted] Attorneys for Respondent CSE & Associates, Inc. ARIZONA REGISTRAR OF CONTRACTORS ETICO STONE, LLC, Case No. 2024-06902 Complainant, WRITTEN ANSWER TO CITATION vs. AND COMPLAINT CSE and Associates Inc., DBA: C.S. Edmunds Homes, License No. ROC 116885, Respondent. For its written answer to the citation dated July 30, 2024, CSE & Associates, Inc. (“CSE”) hereby responds as follows: I. Background This dispute arises out of the construction of a single-family residence located at 3994 Rolling Stock Way, Wickenburg, Arizona 85390 (the “Project”). The Project owner is Michael James Nadasky (the “Owner”). CSE was the general contractor. Etico Stone, LLC’s (“Etico”) subcontract included installation and materials for exterior stone veneer. On December 27, 2023, CSE provided written notice to the Owner that he was in default for failure to pay amounts due pursuant to the construction contract. Thereafter, CSE sent several demands to the Owner for payment. G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

On June 17, 2024, Etico filed a written complaint with the Arizona Registrar of Contracts

(“ROC”) against CSE for non-payment of materials and/or services. On July 5, 2025, CSE was

notified of the complaint. On July 12, 2024, CSE filed its response. In its response, CSE

demonstrated that CSE lacked capacity to pay and that it had not received sufficient monies from

the Owner as payment for the work and/or materials rendered for the Project.

After filing its complaint with the ROC, Etico expressed to CSE that it did not want CSE

to lose its license and wished to continue future business together. Etico even suggested payment

arrangements:

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

On July 26, 2024, through counsel, CSE sent a demand for payment of the unpaid balance to the Owner with Etico’s invoice attached. It was not until August 9, that the Owner’s counsel confirmed receipt of the demand. However, Owner’s counsel is unable to respond to the demand until August 23, due to traveling and the need to consult with his client. CSE is currently waiting for the Owner to make payment. Under A.R.S. § 32-1154(A)(10), a contractor’s license may be revoked or suspended if: 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 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 purchases. (emphasis added).

Etico must therefore prove, (1) it has not been paid, and (2) CSE has the ability to pay.

Since CSE’s July 12, 2024 response to the complaint, CSE still lacks capacity to pay Etico and

the Owner still has not paid CSE.

II. CSE Lacks Capacity to Pay

CSE lacks sufficient funds to pay Etico. CSE’s May 2024 bank statement shows an

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

ending balance of $129.07:

///

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

The June 2024 bank statement shows an ending balance of $119.07:

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

The July 2024 bank statement shows an ending balance of $109.07:

The only withdrawals made in May, June, and July were automatic debits by Wells Fargo for monthly service fees. III. The Project Owner Failed to Pay CSE The Project Owner has failed to pay CSE $135,964.00 for work performed and/or materials

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/2024 ROC Legal

rendered. Of that amount, $16,576 is owed to Etico. CSE has demanded payment from the Owner,

but no payment has been made.

IV. No Prior Discipline

CSE has been in business since 1996 (28-years) and has no prior disciplinary record.

Pursuant to A.A.C. R4-9-117, this should be considered in determining the appropriate discipline.

V. Conclusion

CSE lacks sufficient capacity to pay Etico and CSE has not received payment from the

Owner for the work performed at the Project and/or materials rendered. Based on the foregoing,

CSE’s license should not be suspended or revoked.

DATED this 14th day of August, 2024.

HOLDEN WILLITS PLC

By /s/ Brittany M. De Robertis Barry A. Willits Brittany M. De Robertis Attorneys for Respondent CSE & Associates, Inc ORIGINAL filed via e-mail this same date to: Arizona Registrar of Contractors Attn: Legal Dept. 1700 W. Washington St., Ste 105 Phoenix, AZ 85007 [email redacted] COPY sent via email and mail this same date to: Etico Stone LLC 12455 N 92nd Drive bldg C Peoria, AZ, AZ 85381 [email redacted] Complainant - ProPer

/s/ Brittany M. De Robertis

G:\Docs\CSE & Associates\Etico Stone (ROC) - 002\Legals\2024.08.14 Response to Etico ROC Citation.docx Received 8/14/24, 12:59 PM State of Arizona Mail - Etico v. CSE & Associates / Citation and Complaint 2024-069028/14/2024 ROC Legal

Answers - AZROC <[email redacted]>

Etico v. CSE & Associates / Citation and Complaint 2024-06902 message

Brittany DeRobertis <[email redacted]> Wed, Aug 14, 2024 at 12:33 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Barry Willits <[email redacted]>, Clara Wiklanski <[email redacted]>

Attached is CSE & Associates Written Answer to Citation and Complaint.

Thank you,

Brittany M. De Robertis, Esq.

HOLDEN | WILLITS PLC

N. Central Ave., Suite 2000

Phoenix, AZ 85004

(602) 508-6210

From: Gail Mathews <[email redacted]> Sent: Monday, July 29, 2024 4:00 PM Subject: Citation and Complaint 2024-06902

Attached is an electronic courtesy copy of the citation and complaint that was mailed and issued via USPS.

Please do not reply directly to this email. Any reply or response should be addressed to [email redacted]

Sincerely,

Gail Mathews

Legal Assistant

https://mail.google.com/mail/b/AEoRXRTb1CCX2_1rfPnXB3bpaqcZzUCCKMndnIKe1ccmr1gR74Pk/u/0/?ik=581c53cf5c&view=pt&search=all&permthi… 1/2 Received 8/14/24, 12:59 PM State of Arizona Mail - Etico v. CSE & Associates / Citation and Complaint 2024-069028/14/2024 602-771-6804 ROC Legal

[email redacted]

1700 W Washington Suite 105

Phoenix, AZ 85007

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

The ROC is now on social media! Make sure to follow us on:

2024.08.14 Response to Etico ROC Citation.pdf 618K

https://mail.google.com/mail/b/AEoRXRTb1CCX2_1rfPnXB3bpaqcZzUCCKMndnIKe1ccmr1gR74Pk/u/0/?ik=581c53cf5c&view=pt&search=all&permthi… 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