ALJDEC - Licensing
2025A-03837-CHC-ROC · Registrar of Contractors · 2025-11-16
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Gerard Gayda,
COMPLAINANT,
v.
Encanto Custom Homes LLC,
License No. ROC 319893,
RESPONDENT.
No. 2025A-03837-CHC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: October 28, 2025 at 9:00am
APPEARANCES: Complainant Gerard Gayda appeared on his own behalf. Jason Ewing appeared on behalf of Respondent Encanto Custom Homes, LLC. Investigator Patricia Schuette appeared on behalf of the Arizona Registrar of Contractors.
ADMINISTRATIVE LAW JUDGE: Nicole Robinson
EXHIBITS ADMITTED INTO EVIDENCE: Arizona Registrar of Contractors Notice of Hearing Packet (“Packet”). Complainant Exhibits 1 through 10. Respondent Exhibits 1 through 4.
FINDINGS OF FACT
Encanto Custom Homes, LLC (“Respondent”) is the holder of License No. ROC 319893 first issued by the Arizona Registrar of Contractors (“Registrar”) on May 14, 2018. Respondent’s license is a B General Residential Contractor license and specialize in new custom home builds and remodeling.
On or about February 18, 2022, Gerard Gayda (“Complainant”) entered into a contract with Respondent for, among other things, a new home build. The project consisted of a new residential home located in Queen Creek, Arizona at approximately 4,200 square feet. The total amount of the contract was $1,125,000.00 and Complainant paid Respondent $1,399,000.00 with the work on the project stopping on or about February 12, 2024.
On or about April 24, 2025, 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 Patricia Schuette. On June 10, 2025, Investigator Schuette conducted a jobsite inspection with both parties present.
On July 11, 2025, Investigator Schuette issued a Written Directive to Respondent with a deadline date of August 1, 2025.
Respondent requested an extension to the July 11, 2025, Written Directive deadline date. On August 8, 2025, Investigator Schuette granted the extension and issued an Amended Written Directive to Respondent that provided as follows:
After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on Friday, August 22, 2025.
. . . .
DIRECTIVE REQUIREMENTS
You are directed to remedy the following violations by the appropriate means:
Complaint Item: 1 - tile flooring installed incorrectly, hollow sounding tiles in rows due to improper crack isolation installation
Investigator’s Observation: Verified. Hollow sounding tile alone does not necessarily indicate that the tile is not bonded. All grout joints were intact at the time of inspection. That said, ANSI A108.5 standard for interior dry areas, requires at least 80% continuous contact between the tile and the substrate (thin-set mortar). Voids are allowed, but they should be dispersed, and no single void should be larger than 2 square inches. Additionally, the TCNA specifically requires expansion joints on all tile floor installations. In smaller areas, the expansion can be along the perimeter. No visible expansion joints were present at the time of inspection. Lastly, the application of the crack isolation material used and as shown by photos during installation, has a manufacturer and TCNA F125 requirement to extend 3 times the width of the tile. As shown on the photos, the isolation material was approximately 12” wide. Respondent to correct within appropriate means.
. . . .
Complaint Item: 2 - cabinets installed by unlicensed contractor, fridge doors and microwave corrections needed, chipping stain
Investigator’s Observation: Verified. The cabinet end panel at the microwave is not plumb and appears to continue through the top wall cabinets to the other end panel where the double ovens are located. It appears that the opening for the refrigerator was measured incorrectly as the cabinet fronts on the doors of the fridge to not align with the adjacent cabinets. Incomplete finish was seen on the backside of a few door/drawer fronts. Respondent to correct within appropriate means. Cabinet contractor must be separately licensed or an employee where worker’s comp is being paid.
. . . .
Complaint Item: 3 - chipped floor tiles while installing, poor grout installation and tiles coming loose
Investigator’s Observation: Partially verified. When inspecting for chipped/damage tile, the TCNA states that the tile should be inspected from 5’ above the floor. Viewing from 5’ above the floor, there were several chipped tile edges that could be seen. No visible signs of loose tiles such as cracked grout joints or visible movement or flex in the tile. Respondent to correct chipped tiles that can be seen from 5’ viewing.
. . . .
Complaint Item: 4 - uneven stain on cabinets, multiple colors
Investigator’s Observation: Verified. As mentioned on complaint item 2, there are a few doors/drawer fronts that are not stained on the backside. The stain on other cabinet fronts do have some variation in color. Color can differ with wood grain variations and stain lots. Excessive variation is not acceptable.
. . . .
Complaint Item: 5 - cabinets in kitchen not level doors do not fit proper uneven gaps
Investigator’s Observation: Verified. In addition to the upper wall cabinets where the ovens are located and noted in complaint item 2, there were other cabinet doors and drawers that were not level and did not appear to have spacing in align. Tops of cabinet doors/drawers must bin in the same horizontal plane, within 1/8”. Respondent to make appropriate adjustments at least once during the first year or once by second year. Afterwards, adjustments are considered homeowner maintenance.
. . . .
After the deadline in the directive expired, Investigator Schuette was notified by Complainant that Respondent communicated with him by email regarding tile but no materials were delivered and no corrective work had been performed.
On August 27, 2025, the Registrar issued a Citation against Respondent, charging possible violations of Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A) and Ariz. Rev. Stat. § 32-1154(A)(22).
Hearing Evidence
Investigator Schuette testified that Complainant informed her that emails sent by Respondent during the written directive period were stall tactics with no clear plan of repair.
Complainant testified that he and his family moved into the new home in October 2023. Complainant testified that Respondent hired subpar and unlicensed contractors whereby the installed tile was laid improperly with chipped tiles and hollow areas under the tile. Complainant testified that he no longer was required to work with Respondent after the August 22, 2025, deadline date.
Jason Ewing, Respondent Member, testified on behalf of Respondent. Mr. Ewing testified that during this time period, he was personally dealing with a family matter which lead to some delays in communication. Mr. Ewing testified that Respondent was willing to work with Complainant even after the August 22, 2025 deadline date.
Administrative notice was taken of Respondent’s prior License record on October 28, 2025. Such prior License record reflects that Respondent’s License No. ROC 319893 was Active. Also, such prior License record reflected that there were five open complaints 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 means “[p]roof which leads the trier of fact to find that the existence of the contested fact is more probable than its nonexistence.”
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 workmanlike manner in violation of Ariz. Rev. Stat. § 32-1154(A)(3), namely Ariz. Admin. Code R4-9-108(A).
In addition, the evidence established that Respondent did not complete the corrective work following the Directive being issued. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a written directive from the Registrar in violation of Ariz. Rev. Stat. § 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 Respondent’s License No. ROC 319893 for a period of two (2) days.
It is further recommended that the Registrar require Respondent to pay the sum of $300.00 as a civil penalty pursuant to Ariz. Rev. Stat. § 32-1154(E).
It is further recommended that if Respondent 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 Respondent’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. § 32-1101(A)(5), unless Respondent tenders payment of any outstanding prior civil penalty.
Pursuant to Ariz. Rev. Stat. § 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, November 17, 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]
Patricia Schuette
[email redacted]
Encanto Custom Homes LLC
34054 N Paseo Grande Dr.
Queen Creek, AZ 85142
[email redacted]
Gerard Gayda
33503 N Bell Rd
Queen Creek, AZ 85144
[email redacted]
By: OAH Staff