ALJDEC - Licensing

2024A-07255-NPC-ROC · Registrar of Contractors · 2025-01-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Everest Air LLC,

COMPLAINANT

v.

Sterling Homes And Construction LLC

License No. ROC 327693,

RESPONDENT

No. 2024A-07255-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: October 7, 2024, with the record held open until January 2, 2025

APPEARANCES: Mark Brimley appeared on behalf of Everest Air LLC. Nicholas Bigelow appeared on behalf of Respondent Sterling Homes And Construction LLC.

ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer

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

FINDINGS OF FACT

Sterling Homes And Construction LLC (Respondent) is the holder of License No. 327693 issued by the Registrar of Contractors (Registrar).

On or about June 26, 2024, Everest Air LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $6568.00 for work performed.

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

At the time of the hearing, the parties stipulated that Respondent owed Complainant $6568.00. The parties entered into a tentative payment plan at that time; however, Respondent failed to comply with the terms of the payment plan.

Respondent did not assert that it lacked the capacity to pay the amount Complainant asserted was due.

CONCLUSIONS OF LAW

The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by a preponderance of the evidence. See A.A.C. R2-19-119.

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

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

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

The evidence established that Respondent owed a total of $6568.00 for work performed.

Respondent failed to establish by a preponderance of the evidence that it lacked the ability to pay Complainant for the work performed.

Therefore, Complainant established that Respondent violated A.R.S. § 32-1154(A)(10) by failing to pay Complainant $6568.00 for services or materials rendered in connection with Respondent’s contracting business.

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

RECOMMENDed order

Based on the foregoing, it is recommended that the Registrar suspend Respondent’s License No. 327693 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $6568.00 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $6568.00 in certified funds, the Registrar may close the Complaint in Case No. 2024-07255.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

Done this day, January 22, 2025.

/s/ Tammy L. Eigenheer

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

Everest Air LLC

[email redacted]

Sterling Homes And Construction LLC

[email redacted]

By: OAH Staff