ALJDEC - Licensing
2024A-10985-NPC-ROC · Registrar of Contractors · 2025-02-03
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
VM Drilling LLC,
COMPLAINANT
v.
SRD Excavation Corporation
License Nos. ROC 345373 & 349028,
RESPONDENT
No. 2024A-10985-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: January 15, 2025 at 10:30am
APPEARANCES: Jennifer Valdovinos on behalf of Complainant; Ana Valdovinos, Complainant Observer.
ADMINISTRATIVE LAW JUDGE: Nicole Robinson
EXHIBITS ADMITTED INTO EVIDENCE: Registrar of Contractors Notice of Hearing Packet (“Packet”).
FINDINGS OF FACT
SRD Excavation Corporation (Respondent) is the holder of License Nos. ROC 345373 & 349028 issued by the Registrar of Contractors (Registrar).
On or about September 26, 2024, VM Drilling LLC (Complainant) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $141,266.25 for an underground utilities drilling construction project.
The parties were unable to resolve their differences, and Complainant requested an administrative hearing. On November 8, 2024, the Registrar then issued a Citation for an alleged violation of Ariz. Rev. Stat. § 32-1154(A)(10).
The Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing.
The Registrar issued a Notice of Hearing, setting a hearing at 10:30am on January 15, 2025. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record.
On December 10, 2024, the Office of Administrative Hearings issued an Order, to the parties which advised the parties how to connect to the hearing via Google Meet.
The hearing was held via Google Meet on January 15, 2025. Respondent did not request that the hearing be continued. Although the start of the hearing was delayed approximately 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any testimonial evidence to defend its license.
Jennifer Valdovinos testified on behalf of Complainant, that the total due to Complainant was $141.266.25. The total amount was sent to Respondent with five separate invoices detailing the work on that particular day and part of the project, as shown below:
Invoice #
Date
Amount
1
5/21/2024
$31,075.00
2
5/23/2024
$20,422.25
3
7/9/2024
$46,245.50
4
7/9/24
$27,771.50
5
7/17/24
$15,752.00
Ms. Jennifer Valdovinos further testified that there had been no communication from Respondent for an attempt to make any payment.
Per Respondent’s Answer dated November 7, 2024, a “Seth,” on behalf of Respondent, stated via email, “SRD has not been paid on these projects and VM has back charged and damages as well that will be all totaled by the end of next week and final billing on these projects will be submitted. We had like 7 sub-contractors help us on these projects and every single one of them took all the easy work and ran off and left us to clean up all of the mess to make them complete projects.”
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. A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.”
The copies of the Notice of Hearing that the Registrar mailed to Respondent at its address and email address of record were reasonable and Respondent is deemed to have received notice of the hearing.
Ariz. Rev. Stat. § 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 $141,266.25 for an underground utilities drilling construction project.
In addition, Respondent failed to establish by a preponderance of the evidence that it lacked the ability to pay Complainant for the work performed. Respondent’s response in the Answer implies that they would be able to pay eventually and they did not assert that it lacked the capacity to pay the amount Complainant asserted was due.
Therefore, Complainant established that Respondent violated Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $141,266.25 for services or materials rendered in connection with Respondent’s contracting business.
Based upon Respondent’s violation of the provisions of Ariz. Rev. Stat. § 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 Nos. ROC 345373 and 349028 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $141,266.25 in certified funds.
It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $141,266.25 in certified funds, the Registrar may close the Complaint in Case No. 2024-10985.
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, February 3, 2025.
/s/ Nicole Robinson
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
c/o Legal Department
1700 W. Washington Street, Suite 105
Phoenix, AZ 85007
[email redacted]
SRD Excavation Corporation
2111 E Melrose St
Gilbert, AZ 85297
[email redacted]
VM Drilling LLC
4137 W Cheery Lynn Rd
Phoenix, AZ 85019
[email redacted]
By: OAH Staff