ALJDEC - Licensing

2024A-10709-CHC-ROC · Registrar of Contractors · 2025-04-04

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Lorraine Mann,

COMPLAINANT,

v.

Moran Pro Services, LLC

License No. ROC 342982,

RESPONDENT.

No. 2024A-10709-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: March 19, 2025

APPEARANCES: Jose Martinez, Esq. represented Complainant Lorraine Mann who was present. Bryan Moran appeared on behalf of Respondent Moran Pro Services, LLC. Arizona Registrar of Contractors Investigator John Peru appeared as a witness.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

EXHIBITS ADMITTED INTO EVIDENCE: None; Administrative Notice taken of Agency Record

FINDINGS OF FACT

Moran Pro Services, LLC (“Respondent”) is the holder of License Number 342982 issued by the Arizona Registrar of Contractors (“Registrar”).

On or about November 22, 2023, Lorraine Mann (“Complainant”) contracted with Respondent for Respondent to perform remodeling work to her home.

On or about September 19, 2024, the Registrar received a Complaint against Respondent from Complainant alleging abandonment and poor work with respect to the project.

The Registrar assigned the Complaint to Investigator John Peru. On October 18, 2024, Investigator Peru conducted a Jobsite Inspection. Investigator Peru’s Jobsite Inspection Notes provide in pertinent part as follows:

On 10/18/2024, at approximately 1030 hours, I conducted a Jobsite Inspection at the Home of Lorraine Mann per her complaint against Moran Pro Services LLC. The Complainant was present for this Inspection. The Respondent was NOT present for this Inspection.

The nature of this complaint is in regards to a remodeling project; specifically, the incomplete status and Workmanship disputes per contract.

Complaint Item: 1 - Patio roof, stucco was demoed and electrical wires were left uncovered and exposed to severe heat and rain

Investigator’s Observation: Verified.

At the time of this inspection, the Rear Patio Roof was incomplete. The Header Beam detail is incorrectly repaired. The drywall ceiling is poor and incomplete. There is exposed wiring on top. The Rolled roofing is incomplete. There is debris left on the roof, and it is unprotected at this time. The surrounding stucco on the Rear Patio is poorly done, unfinished, and unpainted at this time.

REF: (P)1-(P)10, (P)24-(P)29.

Complaint Item: 3 - Paint not adhering due to not properly prepping, cleaning and priming before paint. Paint dripping on floors & baseboards

Investigator’s Observation: Verified.

At the time of this inspection, the interior drywall throughout the house has not been prepped and painted. REF: (P) 11- (P) 15

Complaint Item: 4 - house roof tiles & valley are uneven

Investigator’s Observation: Verified.

At the time of this inspection, the re-roof was poorly done. The roof valley/roof valley pan flashing has not been properly installed. REF: (P) 30- (P) 32

Complaint Item: 5 - front and back doors not leveled or not insulated. casings and trim not installed correctly

Investigator’s Observation: Verified.

At the time of this inspection, the Front Entry Door was poorly installed. The Door Jamb/Header Detail is incorrect. The Exterior Door Casing is poorly installed with uneven reveals, and is unpainted. REF: (P) 16- (P)20. The Rear Double Doors located at the Rear Patio are poorly installed. The Header Jamb is sagging in the middle. The Door Casing has not been installed. REF: (P) 21-(P) 23.

Complaint Item: 6 - stucco on house cracking not textured.

Investigator’s Observation: Verified.

At the time of this inspection, the stucco work was poorly done and incomplete. REF: (P) 24- (P) 29.

Complaint Item: 7 - patio drywall broken, holes and peeling

Investigator’s Observation: Verified.

At the time of this inspection, the Rear Patio Drywall is damaged and unfinished. REF: (P) 1- (P) 7.

Complaint Item: 8 - living room, bathroom and kitchen lights not working not installed right

Investigator’s Observation: Verified.

At the time of this inspection, the can lights for the living room have not been cut in/installed. Additionally, the adjacent can lights are not working.

Furthermore, the Respondent has left exposed wiring, and an exposed outlet. REF: (P) 33, (P) 48.

Complaint Item: 9 - stucco and debris left all over backyard and broken pavers

Investigator’s Observation: Verified.

At the time of this inspection, the Respondent has not completed the work and cleanup.

Complaint Item: 10 - baseboards, casing, interior doors over chalked and still have staples exposed

Investigator’s Observation: Verified.

At the time of this inspection, the Respondent has not completed the work and cleanup.

Complaint Item: 11 - interior doors & closet doors not installed

Investigator’s Observation: Verified.

At the time of this inspection, there are interior doors/ and interior closet doors that have not been installed. REF: (P) 37- (P) 41.

Complaint Item: 12 - paint sprayed on kitchen cabinets, light fixtures and newly installed floor tile

Investigator’s Observation: Verified.

At the time of this inspection, I observed various kitchen cabinetry that has white paint overspray from the Respondent's work. REF: (P) 42- (P) 47.

Complaint Item: 13 - paint was sprayed on house alarm wires

Investigator’s Observation: Verified.

At the time of this inspection, I observed white paint overspray on the alarm wires located in the closet. REF: (P) 34, (P) 35.

Complaint Item: 14 - backdoor framing & stucco sagging

Investigator’s Observation: Verified. See Complaint Item #5 & # 6.

Complaint Item: 15 - trash never was removed

Investigator’s Observation: Verified. REF: (JSI PICS)

ITEMS NOT REQUIRING CORRECTION:

Complaint Item: 2 - drywall throughout house was improperly applied leaving dents

Investigator’s Observation: At the time of this inspection, the Complainant stated that the Respondent has corrected some of the drywall issues.

All errors in original.

Investigator Peru did not issue a Written Directive to Respondent due to the revoked status of Respondent’s license at the time of the Jobsite Inspection.

Thereafter, Investigator Peru forwarded the Complaint to the Registrar’s Legal Department. The Registrar issued a Citation against Respondent charging possible violations of A.R.S. § 32-1154(A)(1), A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a), and A.R.S. § 32-1154(A)(16).

Respondent timely filed a written Answer to the Citation and the matter was referred to the Office of Administrative Hearing, an independent State agency, for an administrative hearing.

Investigator Peru testified consistently with the findings contained in his Jobsite Inspection Notes. Investigator Peru testified regarding the scope of work, including roof repairs, framing, drywall, painting, door installation, and “structural members.” Investigator Peru testified that Respondent’s license was revoked on March 27, 2024, and therefore, he did not issue a Written Directive. Investigator Peru further testified that Respondent had contracted for and performed work beyond the scope of its R62 license classification which is limited to minor repairs not to exceed $5,000.00 for labor and materials. As such, Respondent could perform repairs, but not act in the capacity of a general contractor and could not perform load bearing or structural work. Further, the parties’ contract exceeded $5,000.00.

Ms. Mann agreed with Investigator Peru’s testimony, and also testified that Respondent has not made any attempts to cure its defective work. Ms. Mann testified that the kitchen is not in a condition to be used and that she has been put in the position of having to inhabit one room and one bathroom in the home. Ms. Mann asserted that the house is not structurally safe.

Bryan Moran, Respondent’s representative, testified that he had been in a partnership with Ms. Mann’s son and that he stopped working on the project because Ms. Mann’s son “took most of the funds” and the relationship deteriorated. Mr. Moran testified that Ms. Mann’s son was “managing” the drywall and the bathroom. Mr. Moran did not dispute Investigator Peru’s testimony or his findings. Mr. Moran blamed Respondent’s inability to complete the project on its poor financial status due to Ms. Mann’s son and having to pay monies to resolve a dispute concerning an unrelated project.

Administrative notice is taken of Respondent’s prior License record on April 3, 2025. Such prior License record reflects that Respondent’s License Number 342982 was first issued on February 2, 2023, and was revoked on March 27, 2024. Such prior License record also reflects that there is only the instant open Complaint, no resolved/settled complaints, and one complaint resulting in discipline against Respondent’s license.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

The evidence established that Respondent failed to complete the project and abandoned the contract without legal excuse. Therefore, Complainant established that Respondent violated A.R.S. § 32-1154(A)(1).

The evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent did not complete the project in a professional and workmanlike manner in violation of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(A).

Respondent’s Specialty Residential R-62 Minor Home Improvements license classification allows the following scope of work:

For projects of $5,000 or less including labor and materials, this classification allows the licensee to perform remodeling, repairs, and improvements to existing structures or appurtenances. The minor home improvement contractor shall not perform structural work to any existing structures or appurtenances, including load bearing masonry or concrete work (with the exception of on-grade flat work), and load bearing carpentry work (with the exception of patio or porch covers). Any work related to electrical, plumbing, air conditioning systems, and boilers must be subcontracted to an appropriately licensed contractor.

The evidence established that Respondent’s contract exceeded $5,000.00 and included load bearing and structural work. Therefore, Complainant established that Respondent contracted for and performed work beyond the scope of its license in violation of A.R.S. § 32-1154(A)(16).

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall revoke Respondent’s License Number 342982.

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, April 4, 2025.

/s/ Sondra J. Vanella

Administrative Law Judge

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

Tom Cole

Registrar of Contractors

c/o Legal Department

[email redacted]

Moran Pro Services, LLC

[email redacted]

Jose D. Martinez, Esq.

[email redacted]

Lorraine Mann

[email redacted]

John Peru

[email redacted]

By: OAH Staff