ALJDEC - Licensing

2025A-05847-NPC-ROC · Registrar of Contractors · 2025-10-16

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Harder Mechanical Contractors Inc.,

COMPLAINANT,

v.

Rainbow International of South West Mesa LLC,

License No. ROC 326529,

RESPONDENT.

No. 2025A-05847-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: September 26, 2025 at 1:00pm

APPEARANCES: Attorney Erika Johnson appeared on behalf of Complainant Harder Mechanical Contractors, Incorporated with witness Matthew Gledhill. Dallas Nevill appeared on behalf of Respondent Rainbow International of South West Mesa, LLC.

ADMINISTRATIVE LAW JUDGE: Nicole Robinson

EXHIBITS ADMITTED INTO EVIDENCE: Arizona Registrar of Contractors Notice of Hearing packet (“Packet”), Complainant Exhibits A through X.

FINDINGS OF FACT

Rainbow International of South West Mesa, LLC (“Respondent”) is the holder of License No. ROC 326529 issued by the Registrar of Contractors (“Registrar”).

On or about October 30, 2023, Respondent hired Harder Mechanical Contractors, Incorporated (“Complainant’), as a subcontractor, to primarily perform heating, ventilation, and air conditioning work on the Bright View Health Lab Project.

On March 15, 2024, Complainant invoiced Respondent in the total amount of $145,689.00, for completion of the project. On the same day, Mr. Dallas Nevill, Respondent Managing Member, informed Complainant by email that “all payments were signed and mailed Friday last week.” Complainant received no payment. Complainant made numerous attempts to collect payment, to no avail.

In December 2024, Enzo, the Owner of the project, bypassed Respondent and paid Complainant $35,000.00 which brought the total amount Respondent owed to $110,689.00.

On May 28, 2025, the Superior Court of Arizona in Maricopa County awarded Complainant a stipulated civil judgment in the amount of $128,985.46. In addition, the Court included an award of interest on the principal sum at the rate of 18% per year from March 31, 2025, until paid in full and attorneys’ fees.

On or about June 12, 2025, Complainant filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $110,689.00 for completed work on the Bright View Health Lab Project.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. On July 18, 2025, the Registrar then issued a Citation for Alleged Violation of Ariz. Rev. Stat. § 32-1154(A)(10).

Hearing Evidence

Matthew Gledhill, Arizona Commercial Manager, testified on behalf of Complainant. Respondent presented the testimony of Mr. Nevill. The substantive evidence of record is as follows:

Mr. Nevill was injured in August 2023 which pulled him out from the construction business for a bit of time.

There is no dispute that Respondent owes Complainant $110,689.00.

Respondent has been paid by Enzo.

In April 2025, there was a payment plan put into place between Complainant and Respondent.

The first payment per the payment plan was due to Complainant on April 11, 2025 in the amount of $25,000. Respondent did not make this payment.

On May 28, 2025, Complainant secured a civil judgment against Respondent for non-payment in the amount of $128,985.46.

To date, Respondent has not paid any amount owed to Complainant.

Currently, Respondent has 24 active projects that they are working or have in the pipeline.

Mr. Nevill did not assert that Respondent lacked the capacity to pay the amount Complainant was owed.

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.”

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.

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.

In fact, Mr. Nevill agreed that Respondent needed to pay the unpaid balance of $110,689.00 to Complainant.

In this case, Respondent failed to establish by a preponderance of the evidence that it lacked the ability to pay Complainant for the work performed, especially since Respondent has many projects they are working and developing.

Therefore, Complainant established that Respondent violated Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $110,689.00 for services or materials rendered in connection with Respondent’s contracting business.

RECOMMENDed order

Based on the foregoing,

It is recommended that the Registrar suspend Respondent’s License No. ROC 326529 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $110,689.00 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $110,689.00 in certified funds, the Registrar may close the Complaint in Case No. 2025A-05847.

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, October 16, 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]

Erika L. Johnsen, Esq.

LANG & KLAIN PLC

6730 N Scottsdale Rd, Ste 101

Scottsdale, AZ 85253

[email redacted]

Harder Mechanical Contractors Inc.

2148 NE MLK Jr. Blvd.

Portland, OR 97212

[email redacted]

By: OAH Staff