ALJDEC - Licensing
2024A-11176-NPC-ROC · Registrar of Contractors · 2025-06-23
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Smiley Lifting Solutions LLC,
COMPLAINANT,
v.
5/64 CORP
License No. ROC 341131,
RESPONDENT.
No. 2024A-11176-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: June 4, 2025 at 1:00pm
APPEARANCES: Kimberly Meade on behalf of Complainant Smiley Lifting Solutions LLC.
ADMINISTRATIVE LAW JUDGE: Nicole Robinson
EXHIBITS ADMITTED INTO EVIDENCE: Arizona Registrar of Contractors Notice of Hearing Packet (“Packet”).
_____________________________________________________________________
FINDINGS OF FACT
5/64 CORP (“Respondent”) is the holder of License No. ROC 341131 issued by the Registrar of Contractors (“Registrar”).
On or about September 30, 2024, Smiley Lifting Solutions LLC (“Complainant”), filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $42,560.62 for the rental of a spider crane and operated crane labor which lasted approximately four months on Respondent’s projects.
The parties were unable to resolve their differences, and Complainant requested an administrative hearing. The Registrar then issued a Citation alleging a violation of Ariz. Rev. Stat. § 32-1154(A)(10).
The Registrar referred the matter to the Office of Administrative Hearings (“OAH”), an independent state agency, for an evidentiary hearing.
The hearing was originally scheduled with OAH on January 15, 2025. The January 15, 2025, hearing did not move forward because the parties agreed to enter into a status and try to work out a path forward.
On April 16, 2025, Accounts Receivable Manager Kimberly Meade, on behalf of Complainant, reached out to OAH and requested to move forward with a hearing.
On April 28, 2025, OAH rescheduled and set the hearing to June 4, 2025 at 1:00pm. OAH emailed a copy of the Order Granting Continuance to Respondent to its email address of record. In addition, this Order advised the parties how to connect to the hearing via Google Meet. The hearing was held via Google Meet on June 4, 2025 at 1:00pm.
Respondent did not request that the hearing be continued. Although the start of the hearing was delayed 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any evidence to defend its license.
Respondent did not assert in its written documentation that it lacked the capacity to pay the amount Complainant asserted was due.
Hearing Evidence
Ms. Meade testified that the original total amount due to Complainant was $42,560.62. Ms. Meade stated that on February 19, 2025, Respondent paid Complainant $7,093.44 via a wire transfer. Complainant argued that the total amount owed at the time of the hearing was $35,467.18. Ms. Meade testified that Complainant was willing to work with Respondent and sent numerous invoices by email and postal mail, but received no other monies.
CONCLUSIONS OF LAW
The Order Granting Continuance emailed to Respondent at its email address of record was reasonable, and Respondent is deemed to have received notice of the hearing.
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.”
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 purpose of the Registrar’s licensing statutes is to protect the public from unscrupulous, unqualified, and financially irresponsible contractors.
In this case, the preponderance of the evidence shows that Respondent owed Complainant more than $750.00 for materials/services provided in connection with Respondent’s operations as a contractor.
The evidence established that Respondent owed a total of $35,467.18 for services provided and rental equipment.
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 Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $35,467.18 for services or materials rendered in connection with Respondent’s contracting business.
Hence, Respondent’s license should be suspended until it pays to Complainant $35,467.18. 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 No. 341131 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $35,467.18 in certified funds.
It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $35,467.18 in certified funds, the Registrar may close the Complaint in Case No. 2024A-11176.
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, June 23, 2025.
/s/ Nicole Robinson
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Tom Cole, Director
Registrar of Contractors
5/64 CORP
[email redacted]
Smiley Lifting Solutions LLC
[email redacted]
By: OAH Staff