ALJDEC - Licensing

2025A-03828-CHC-ROC · Registrar of Contractors · 2025-10-06

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Daniel Schaefer

COMPLAINANT,

v.

Outdoor Homes LLC

License No. ROC 326180 and 339578

RESPONDENT.

No. 2025A-03828-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: September 15, 2025

APPEARANCES: Daniel Schaefer (hereinafter “Complainant”) appeared on behalf of himself. Scott Knudson appeared on behalf of Outdoor Homes LLC (hereinafter “Respondent”).

ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson

EXHIBITS ADMITTED INTO EVIDENCE: Exhibit A: The Registrar’s Administrative Record.

_____________________________________________________________________

FINDINGS OF FACT

On August 1, 2025, the Registrar of Contractors, (hereinafter

Registrar” or “ROC”), issued a Notice of Hearing setting the above-captioned matter for hearing on September 15, 2025, by the Office of Administrative Hearings in Phoenix, Arizona.

2. The Notice of Hearing shows that the hearing was set to consider the

charges made in the Citation and Complaint. Through the Citation, the ROC alleges that Respondent may have violated Arizona Revised Statutes (hereinafter “A.R.S.”) §§ 32- 1154(A)(1), (3), and (22); Arizona Administrative Code (hereinafter “A.A.C.” R4-9-108(B).

3. A hearing was held on September 15, 2025.

4. At hearing, Complainant testified on behalf of himself. Scott Knudson, Respondent’s owner, testified on behalf of Respondent. Todd Anderson, an investigator for the ROC, (hereinafter “Investigator Anderson”), testified regarding his investigation of the Complaint.

5. On or about November 26, 2024, Respondent agreed to remodel Complainant’s home for the amount of $89,187.10. Complainant paid Respondent the amount of $55,540.56 for the project.

6. On or about January 3, 2025, Respondent started work.

7. On or about April 2, 2025, Complainant told Respondent to stop work because he was concerned that Respondent would use subcontractors who would have the potential to impose a lien on his home.

8. On or about April 21, 2025, Complainant filed a Complaint with the Registrar alleging poor work and abandonment on the part of Respondent.

9. The Registrar assigned the complaint to Todd Anderson, an investigator for the Registrar (hereinafter “Investigator Anderson”).

10. On May 8, 2025, Investigator Anderson conducted a job-site inspection and determined that work was still in progress.

11. On May 8, 2025, after the job-site inspection, Complainant told

Mr. Knudson that Respondent could resume work.

12. Respondent performed no work on Complainant’s home after May 8, 2025.

13. On June 23, 2025, the Registrar issued a Directive directing Respondent to complete the following complaint item by appropriate means, no later than Friday, July 11, 2025:

Complaint Item: 1 - On 4/2/25, 4-months after accepting deposits and breaking

ground on 1/9/25, Outdoor Homes told us they used our deposits (total: $55,540.56) to fund other projects and no longer had enough cash or credit to purchase materials for our project and could not complete the scope of our original agreement or provide a refund for unfinished work.

Investigator’s Observation: Verified

The contract was dated November 26th, 2024.

Total contract amount: $89,187.10

Amount paid to the Contractor: $55,540.56.

Scope of work still in need of completion and/or correction as of June 20th, 2025:

• 4K Flush Solid Roof Patio Cover Back Installation Tied Into House Facia

• 4K Solid Roof Side yard Patio Cover

• Concealed Deck Drain 4” Scored PVC

• 12x12” Catch Basin Drop Boxes

• Extension of Irrigation System

• Pool Equipment Gate installation using wood or steel

• Fascia Tile Install

• Natural Stone Patio Installation

• Natural Stone Stepping Pads

• Application of stucco texture to ceiling to patio cover

• Dedicated Circuit for Sauna

• Electrical Run to Patio Cover

• Exterior Home Weep Space Unfinished

• Exterior Fence Unfinished

Governing Rule: ARS 32-1154(A)(3): Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

14. Respondent did not correct the items listed in the Directive.

15. On July 22, 2025, the ROC issued a Citation against Respondent’s license for alleged violations of A.R.S. §§ 32-1154(A)(1),(3),and (22); A.A.C. R4-9-108(B).

16. Respondent filed a timely answer to the Citation.

17. The matter was referred to the Office of Administrative Hearings for an evidentiary hearing.

18. At hearing, Investigator Anderson testified consistently with his job-site inspection notes and the Directive. Mr. Knudson admitted that the project was slow and could have been completed in 8 weeks. During the May 8, 2025 job-site inspection,

Mr. Knudson told Complainant that he would purchase materials for the project.

Mr. Knudson said that he would purchase the materials from a company called “4KAluminum”. Mr. Knudson alleged that Complainant and/or his wife told 4KAluminum not to sell material to Respondent. Mr. Knudson did not have first-hand knowledge of the allegation. Complainant denied the allegation.

19. When asked on cross examination whether Respondent performed work for another company during July and August of 2025, Mr. Knudson chose not to answer the question.

20. Administrative notice is taken of Respondent’s prior License record as reflected on the Registrar’s public website on October 6, 2025. Such prior License record reflects that Respondent’s License No. ROC 326180 was issued on September 13, 2019 and is currently suspended. Such prior License record shows that there is one open complaint against Respondent’s license. Such prior License record shows that one complaint has resulted in discipline against Respondent’s license. Respondent’s disciplinary history is considered an aggravating factor in the imposition of discipline and a civil penalty.

CONCLUSIONS OF LAW

This matter lies within the ROC’s jurisdiction. See A.R.S. § 32-1101 et seq.

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).

4. The Administrative Law Judge may consider the ROC’s administrative record. See Ariz. Admin. Code § R4-9-118.

5. The preponderance of the evidence shows that Respondent abandoned the contract, which is a violation of A.R.S. § 32-1154(A)(1).

6. The preponderance of the evidence shows that Respondent failed to

perform work perform in accordance with applicable building codes and professional industry standards, which is a violation of Ariz. Rev. Stat. section 32-1154(A)(3), namely A.A.C. R4-9-108(B).

7. The preponderance of evidence shows that Respondent failed to comply with the Directive without valid justification, which is a violation of A.R.S. § 32-1154(A)(22).

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall suspend License No. ROC 326180 held by Outdoor Homes, LLC number 269649 for five days. It is further recommended that the Registrar require Outdoor Homes, LLC to pay the sum of $500.00 as a civil penalty pursuant to Ariz. Rev. Stat. section 32-1154(E).

It is further recommended that if Outdoor Homes, LLC fails to pay the entire amount of the civil penalty on or before thirty days following the effective date of the Registrar’s final order, the Registrar revoke Outdoor Homes, LLC’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in Ariz. Rev. Stat. sections 32-1101(A)(7), unless Outdoor Homes, LLC tenders payment of any outstanding prior civil penalty.

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, October 6, 2025.

/s/ Velva Moses-Thompson

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

Daniel Schaefer

[email redacted]

Outdoor Homes LLC

[email redacted]

By: OAH Staff