2024A-06951-NPC-ROC Notice of Hearing & Packet MAILED.pdf

2024A-06951-NPC-ROC · Registrar of Contractors · 2024-08-20

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Three Little Angels Inc., Case No. 2024-06951 DBA: Above the Rim Plumbing & Repair Docket No. 2024A-06951-NPC-ROC COMPLAINANT, NOTICE OF HEARING ON v. CONTESTED CASE Freedom Construction & Design, LLC License No. ROC 333418,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

October 2, 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) Freedom Construction & Design, LLC 267 Ellen Way Bldg. C Williams, AZ 86046

Respondent's Attorney Megan N. Schandle, Esq. 6730 N Scottsdale Rd Scottsdale, AZ 85253 Complainant(s) Three Little Angels Inc. DBA: Above the Rim Plumbing & Repair 6322 N Cliff Rose Williams, AZ 86046

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. 2024-06951 /

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

June 19, 2024

Via U.S. Mail and Email

Complainant Three Little Angels Inc. DBA: Above the Rim Plumbing & Repair 6322 N. Cliff Rose Williams, AZ 86046

Respondent Freedom Construction & Design, LLC 267 Ellen Way Bldg. C Williams, AZ 86046

License mailing address (if different from account/company address of record):

Freedom Construction & Design, LLC Po Box 1767 Missoula, MT 59806

Re: Complaint No. 2024-06951

Dear Complainant and Respondent:

The Registrar received a complaint filed against Freedom Construction & Design, 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 26, 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 26, 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.

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

/s/ Meridith Bell Meridith Bell 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 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 RECEIVED LEGAL 6/26/2024

Megan N. Schandle (480) 534‐4886 [email redacted]

June 26, 2024

Via Email

Registrar of Contractors Legal Department 1700 W. Washington St., Ste. 105 Phoenix, Arizona, 85007-2812 [email redacted]

Re: Three Little Angels, Inc. v. Freedom Construction & Design LLC Complaint No. 2024-06951

To the Registrar’s Legal Department:

This law firm represents Freedom Construction & Design, LLC. I am writing in response to the non-payment complaint filed by Three Little Angels Inc. dba Above The Rim Plumbing & Repair.

Above The Rim Plumbing was hired by Freedom Construction to perform plumbing work on several properties and projects. Above The Rim Plumbing has since left each of these projects before completing its scope of work. Since Above The Rim Plumbing’s departure, Freedom Construction has discovered significant defects with its work that Freedom Construction will be forced to repair. The defects are not minor – in some instances, the plumbing work will need to be completely redone, which will mean rerouting water lines, cutting through concrete, and installing sewer pumps. Above The Rim has also stolen thousands of dollars’ worth of materials off of multiple project sites (that it did not pay for), which Freedom Construction will need to now replace.

Above The Rim Plumbing seeks payment on three invoices in this underlying complaint, all of which relate to different projects. Above The Rim is not entitled to additional payment, and it will owe Freedom Construction payment for the costs to complete and repair its poor work. Each invoice and project are further discussed below.

1. Stockmens (Albright Project) - $4,500 invoice

Above The Rim was hired to perform the plumbing work on this project for $28,000. It sent Freedom Construction a $4,500 invoice for interior trim and installation of a water heater, which is included in this underlying complaint. But Above The Rim has not performed this work. The interior trim remains incomplete, including the plumbing for the downstairs bathroom sink, upstairs bathroom sink, and the installation of showers valves. Above The Rim has billed for work it did not actually perform, and it is in no way entitled to payment for it.

Lang Thal King & Hanson PC • 6730 N. Scottsdale Rd., Suite 101 • Scottsdale, Arizona 85253 • (480) 534‐4900 RECEIVED LEGAL 6/26/2024 Registrar of Contractors June 26, 2024 Page 2

Additionally, there are serious issues with Above The Rim Plumbing’s work on this project, and Freedom Construction is entitled to back charge it for the costs to correct this work. Above The Rim incorrectly marked the sewer lines for excavation, and Freedom Construction was forced to re-dig the sewer line and install a sewer pump to correct these issues.

Even absent these issues, Above The Rim is obviously not entitled to payment on an invoice for work never performed.

2. Gagliardi Project - $5,450 invoice

Similarly, Above The Rim Plumbing was hired to perform the plumbing work on this project (for both the main house and a RV garage), but it left the job before finishing. Above The Rim Plumbing invoiced Freedom Construction for the underground plumbing for the RV garage for $5,000. But again, it did not actually complete the underground plumbing work. Specifically, Above The Rim Plumbing failed to install a trench drain and insulate the black water pipes, as required in its proposal. Despite this incomplete work, Above The Rim has improperly billed Freedom Construction in full for the underground plumbing work.

Additionally, Above The Rim Plumbing charged Freedom Construction a change order for a shop sink for $450. This was never discussed with nor approved by Freedom Construction. Above The Rim Plumbing is not entitled to unilaterally execute change orders, and without express approval from Freedom Construction, it is not owed payment for this change order.

Finally, Freedom Construction again discovered significant defects with Above The Rim Plumbing’s work. Above The Rim Plumbing did not place the plumbing in the correct location per the plans and specifications. The shower and toilet drains are in the incorrect location, the undergrounds drain pipes are not properly installed, and it never brought in water supply lines. Freedom Construction will need to perform significant repair work to address this issue, including cutting concrete and relocating the plumbing lines. Above The Rim’s work will essentially have to be entirely redone. Again, Freedom Construction is entitled to back charge for repair work, and Above The Rim is not entitled to payment for work that is completely improperly installed and departs from the plans and specifications.

3. Northstar (Williams Project) - $9,082 invoice

Finally, Above The Rim was hired to complete plumbing. Above The Rim has not finished its scope of work.

Given the project is currently incomplete, coupled with the many issues on all the other properties, Freedom Construction is currently and carefully inspecting the work that has been performed on this property. But because of Above The Rim Plumbing’s pattern and practice of poor work, Freedom Construction does believe that there are significant issues that will need to be corrected and back-charged on this project, as well. Freedom Construction will also incur significant costs in hiring a replacement contractor to finish the plumbing work. RECEIVED LEGAL 6/26/2024 Registrar of Contractors June 26, 2024 Page 3

The Complaint Must Be Dismissed

Above The Rim Plumbing seeks payment for work that is incomplete or significantly defective. Above The Rim Plumbing has since left each project before finishing its scope of work, and Freedom Construction will be forced to incur the costs to repair (and even redo) Above The Rim Plumbing’s work.

At the end of the day, there is a larger contract dispute at play here that would be more appropriately resolved in a civil forum. But regardless, Above The Rim Plumbing is not entitled to payment for incomplete and/or completely defective work. We ask that this complaint be dismissed. If you have any questions or concerns regarding this matter do not hesitate to contact me.

Sincerely,

LANG THAL KING & HANSON PC

Megan N. Schandle

MNS/jrf LTKH File No: 4219-000: 1901060 RECEIVED LEGAL 6/26/2024

Legal New Mail - AZROC <[email redacted]>

Complaint No. 2024-06951 / Freedom Construction & Design LLC adv. Three Little Angels, Inc. - Response to Non-Payment Complaint message

Jennifer Fortner <[email redacted]> Wed, Jun 26, 2024 at 3:02 PM To: "[email redacted]" <[email redacted]> Cc: Megan Schandle <[email redacted]>

Good afternoon-

Please see the attached Response from Megan Schandle regarding the above-referenced matter.

Thank you – Jennifer

Jennifer Fortner Legal Assistant Direct: 480-534-4893 | Website | vCard 6730 N. Scottsdale Rd., Suite 101 | Scottsdale, AZ 85253 480-534-4900 NOTICE: This message and its attachments are confidential and may be attorney-client privileged. They are protected by law. If you are not the intended recipient, please destroy the message in both electronic and paper form and notify Lang Thal King & Hanson at 480-534-4900 or by email to the sender. Thank you.

MNS Response re Complaint No. 2024-06951.pdf 333K REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Three Little Angels Inc., Case No. 2024-06951 DBA: Above the Rim Plumbing & Repair,

COMPLAINANT, v. CITATION Freedom Construction & Design, LLC, License No. ROC 333418,

RESPONDENT.

The Registrar issues this Citation to Freedom Construction & Design, LLC (“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, Three Little Angels Inc., DBA: Above the Rim Plumbing & Repair (“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)

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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 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 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. 2024-06951. 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.

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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 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 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

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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 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 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/ Margaret Lindsey Margaret Lindsey 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] Freedom Construction & Design, LLC 267 Ellen Way Bldg. C Williams, AZ 86046

Copy mailed by USPS First Class mail this same date to:

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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 Respondent Freedom Construction & Design, LLC 267 Ellen Way Bldg. C Williams, AZ 86046 Respondent’s Attorney Megan N. Schandle, Esq. Lang, Thal, King & Hanson PC 6730 N. Scottsdale Rd. Scottsdale, AZ 85253 Complainant Three Little Angels Inc. DBA: Above the Rim Plumbing & Repair 6322 N. Cliff Rose Williams, AZ 86046

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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 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 Received by Investigations 06/17/2024 2024-06951 RECEIVED LEGAL 6/26/2024

Megan N. Schandle (480) 534‐4886 [email redacted]

June 26, 2024

Via Email

Registrar of Contractors Legal Department 1700 W. Washington St., Ste. 105 Phoenix, Arizona, 85007-2812 [email redacted]

Re: Three Little Angels, Inc. v. Freedom Construction & Design LLC Complaint No. 2024-06951

To the Registrar’s Legal Department:

This law firm represents Freedom Construction & Design, LLC. I am writing in response to the non-payment complaint filed by Three Little Angels Inc. dba Above The Rim Plumbing & Repair.

1. Stockmens (Albright Project) - $4,500 invoice

Lang Thal King & Hanson PC • 6730 N. Scottsdale Rd., Suite 101 • Scottsdale, Arizona 85253 • (480) 534‐4900 RECEIVED LEGAL 6/26/2024 Registrar of Contractors June 26, 2024 Page 2

Even absent these issues, Above The Rim is obviously not entitled to payment on an invoice for work never performed.

2. Gagliardi Project - $5,450 invoice

3. Northstar (Williams Project) - $9,082 invoice

Finally, Above The Rim was hired to complete plumbing. Above The Rim has not finished its scope of work.

The Complaint Must Be Dismissed

Sincerely,

LANG THAL KING & HANSON PC

Megan N. Schandle

MNS/jrf LTKH File No: 4219-000: 1901060 RECEIVED LEGAL 6/26/2024

Legal New Mail - AZROC <[email redacted]>

Complaint No. 2024-06951 / Freedom Construction & Design LLC adv. Three Little Angels, Inc. - Response to Non-Payment Complaint message

Jennifer Fortner <[email redacted]> Wed, Jun 26, 2024 at 3:02 PM To: "[email redacted]" <[email redacted]> Cc: Megan Schandle <[email redacted]>

Good afternoon-

Please see the attached Response from Megan Schandle regarding the above-referenced matter.

Thank you – Jennifer

MNS Response re Complaint No. 2024-06951.pdf 333K Received 8/13/2024 ROC Legal

LANG THAL KING & HANSON PC 6730 N. SCOTTSDALE RD., SUITE 101 SCOTTSDALE, ARIZONA 85253 TELEPHONE (480) 534-4900 Please e-serve filings on: [email redacted] JAMES N. HANSON, #029091 [email redacted] (not for e-service) MEGAN N. SCHANDLE, #037402 [email redacted] (not for e-service)

Attorneys for Respondent Freedom Construction & Design, LLC ARIZONA REGISTRAR OF CONTRACTORS Three Little Angels, Inc. dba Above the Rim Case No.: 2024-06951 Plumbing & Repair, WRITTEN ANSWER TO CITATION AND COMPLAINANT, COMPLAINT v. Freedom Construction & Design, LLC, RESPONDENT. Respondent Freedom Construction & Design LLC (“Freedom”), by and through undersigned counsel, answers the Citation in the above-captioned matter as follows: The Citation charges that Freedom Home may have violated A.R.S. § 32-1154(A)(10). Freedom wholly denies this charge listed in the Citation. Freedom further disputes the Citation to the extent it expressly or impliedly alleges any wrongdoing or liability on the part of Freedom, or any violations of Arizona contracting laws. Freedom neither committed, nor omitted, any acts that would justify the imposition of discipline to its license. Accordingly, Freedom respectfully requests that this matter be referred to a contested hearing before the Office of Administrative Hearings. Freedom reserves its right to raise all applicable legal and factual defenses at that contested hearing, including but not limited to: (1) Complainant has failed to complete the work listed in the invoices for which it seeks to be paid; and (2) Freedom “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.” See A.R.S. § 32-1154(A)(10).

1929577 Received 8/13/2024 ROC Legal

DATED this 13th day of August, 2024. LANG THAL KING & HANSON PC By: /s/ Megan N. Schandle James N. Hanson Megan N. Schandle Attorneys for Respondent Freedom Construction & Design, LLC ORIGINAL filed via e-mail with the Arizona Registrar of Contractors this 13th day of August, 2024, Arizona Registrar of Contractors 1700 W. Washington Street, Ste. 105 Phoenix, AZ 85007 [email redacted] COPY sent via mail this same date to: Andre L. Pennington Pennington Law, PLLC 15331 West Bell Road, Suite 318 Surprise, AZ 85374 [email redacted] Attorneys for Complainant By: /s/ Jennifer Fortner

Received 8/13/24, 2:27 PM State of Arizona Mail - Case No. 2024-06951 / Freedom Construction adv. Three Little Angels, Inc. / Written Answer to Citation and … 8/13/2024 ROC Legal

Answers - AZROC <[email redacted]>

Case No. 2024-06951 / Freedom Construction adv. Three Little Angels, Inc. / Written Answer to Citation and Complaint message

Jennifer Fortner <[email redacted]> Tue, Aug 13, 2024 at 2:23 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Megan Schandle <[email redacted]>, James Hanson <[email redacted]>, "[email redacted]" <[email redacted]>

Good afternoon –

Attached is Freedom Construction & Design, LLC’s Written Answer to Citation and Complaint for the above- referenced matter. Counsel for the complainant is cc’d on this email.

Thank you- Jennifer

Written Answer to Citation and Complaint.pdf 118K

https://mail.google.com/mail/b/AEoRXRQrQAWBI2nAo15HiuU1wfP7dmCYbYbuN7wT5PLICQfiQexL/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 1/1 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?

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 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?

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?

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

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