ALJDEC - Licensing

2024A-13298-NPC-ROC · Registrar of Contractors · 2025-04-28

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

O K Corral Floor Covering Inc,

COMPLAINANT,

v.

Kitchen and Bath Remodeling LLC

DBA: Arizona Cabinets and Décor

License No. ROC 322410,

RESPONDENT.

No. 2024A-13298-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: April 8, 2025 at 3:00pm

APPEARANCES: Leon Corral and Claudia Corral on behalf of Complainant, OK Corral Floor Covering Inc. No representative on behalf of Respondent.

ADMINISTRATIVE LAW JUDGE: Nicole Robinson

EXHIBITS ADMITTED INTO EVIDENCE: Registrar of Contractors Notice of Hearing Packet (“Packet”), Complainant Exhibit A.

FINDINGS OF FACT

Kitchen and Bath Remodeling LLC, DBA: Arizona Cabinets and Decor (“Respondent”) is the holder of License No. ROC 322410 issued by the Registrar of Contractors (“Registrar”).

O K Corral Floor Covering Incorporated (“Complainant”) and Respondent worked numerous jobs together in the past, and Complainant was always paid on time. After numerous attempts to collect payment, Complainant moved forward with a Registrar complaint.

On or about December 5, 2024, Complainant filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $2,275.72. The total amount stemmed from two separate projects, project #1 consisted of a residential primary bedroom flooring project that amounted to $1,950.75. Project #2 consisted of a residential molding installation project that amounted to $324.97.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. On February 6, 2025, the Registrar issued a Citation for Alleged Violation of Ariz. Rev. Stat. § 32-1154(A)(10).

Leon Corral, Complainant Vice President, testified that the total due to Complainant was $2,275.72.

In Respondent’s Answer, Mike Petrucelli wrote on behalf of Respondent, “[w]e will also be attempting to reach out to the complainant prior to hearing in order to mend the situation.” Respondent did not assert that it lacked the capacity to pay the amount Complainant asserted was due.

The Registrar issued a Notice of Hearing, setting a hearing at 3:00pm on April 8, 2025. The Registrar mailed copies of the Notice of Hearing to Respondent at its address and email address of record.

On April 8, 2025, an order was sent to the parties from the Office of Administrative Hearings which advised the parties how to connect to the hearing via Google Meet.

The hearing was held via Google Meet on April 8, 2025. Respondent did not request that the hearing be continued. Although the start of the hearing was delayed approximately fifteen minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any testimonial evidence to defend its license.

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 $2,275.72 for the two projects that Complainant completed.

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 $2,275.72 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 No. ROC 322410 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $2,275.72 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $2,275.72 in certified funds, the Registrar may close the Complaint in Case No. 2024A-13298.

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 28, 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]

Kitchen and Bath Remodeling LLC

DBA: Arizona Cabinets and Decor

1710 E Germann Ave Ste. 10

Chandler, AZ 85286

[email redacted]

O K Corral Floor Covering Inc.

7706 E McDowell Rd

Mesa, AZ 85207-1223

[email redacted]

By: OAH Staff