ALJDEC - Licensing
2025A-10389-NPC-ROC · Registrar of Contractors · 2026-02-26
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
Colter Electric LLC,
COMPLAINANT,
v.
Western River Customs LLC,
License No. ROC 348396,
RESPONDENT.
No. 2025A-10389-NPC-ROC
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: February 6, 2026 at 9:00am
APPEARANCES: Colter Van Wagenen appeared on behalf of Complainant Colter Electric, LLC. Steven Smith appeared on behalf of Respondent Western River Customs, LLC.
ADMINISTRATIVE LAW JUDGE: Nicole Robinson
EXHIBITS ADMITTED INTO EVIDENCE: Arizona Registrar of Contractors Notice of Hearing Packet (“Packet”).
FINDINGS OF FACT
Western River Customs, LLC (“Respondent”) is the holder of License No. ROC 348396, first issued by the Registrar of Contractors (“Registrar”) on October 27, 2023.
On or about October 9, 2025, Colter Electric, LLC (“Complainant”) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $6,716.24 for electrical services provided for a project at a residential home located in Scottsdale, Arizona.
Respondent’s client was using the Scottsdale property as a dog rescue. When the County inspector inspected the electrical system at the property, the inspector’s report determined that Respondent needed to bring in an engineer, the electrical panel was overloaded, and the 200-amp needed to be upgraded to a 400-amp to be brought into compliance. Respondent sought bids for the project. Complainant provided Respondent a bid on this project, the bid was the lowest bid, and the bid was accepted.
The parties were unable to resolve their differences in regard to any unpaid amount, and Complainant requested an administrative hearing. On November 21, 2025, the Registrar then issued a Citation for alleged violation of Ariz. Rev. Stat. § 32-1154(A)(10).
The Citation requested that Respondent file a written answer by December 6, 2025. Respondent filed its answer by email on December 5, 2025, stating in pertinent part, “[Respondent] has fully paid the electrical contractor the complete and agreed-upon contractual amount for all work that was included in the original, approved scope of work. The remaining charges claimed by the subcontractor were never authorized, never submitted through the required written change order process, and materially contradict the terms of the parties’ agreement.” Respondent did not assert that it lacked the capacity to pay the amount Complainant asserted was due.
On December 12, 2025, the Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing.
On December 22, 2025, the Registrar issued a Notice of Hearing, setting a hearing at 9:00am on February 6, 2026.
Hearing Evidence
Colter Van Wagenen, owner of Complainant business, testified on his own behalf. Respondent presented the testimony of Steven Smith, owner of Respondent company. Administrative notice was taken of the Registrar’s packet which includes the Notice of Hearing.
Mr. Van Wagenen testified that the total amount in the original contract was $7,118.42. Respondent paid Complainant the total amount of the original contract. Mr. Van Wagenen further stated that $6,716.24 was invoiced to Respondent for additional work that Mr. Smith asked him to perform. Mr. Van Wagenen testified that this additional work included moving a subpanel further down the wall which required 20 to 30 feet of extended wire, conduit, boxes, additional ground wire to the shed panel, and labor. Mr. Van Wagenen testified that in order to bring the electrical panel up to code for approval, Mr. Smith approved of the work and told Complainant to proceed because the dogs needed the air conditioning.
Mr. Smith argued that Complainant provided a bid for the project and that bid was accepted in the amount of $7,118.42, and no more money was due to Complainant because of “their lack of preparation.” Mr. Smith further testified that Complainant created delays and there were no written change orders approving the additional work. Mr. Smith agreed that the drawings provided to Complainant, in which Complainant used to draw up its estimate, were in error. However, Mr. Smith argued that error should not have doubled the cost of the original contract.
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 this case, it was clear from the evidence and testimony provided that the additional work needed to be completed and was approved due to the emergent need of the animals during the summertime. In fact, Mr. Smith agreed that the drawings provided to Complainant were in error. As such, amounts would change based on that error, and no change orders, or a new estimate were presented, however, Complainant performed the work and it was approved.
Respondent did not provide an alternative amount that should be paid to Complainant. Hence, the evidence established that Respondent owed a total amount of $6,716.24. In addition, 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 $6,716.24 for services 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 348396 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $6,716.24 in certified funds.
It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $6,716.24 in certified funds, the Registrar may close the Complaint in Case No. 2025-10389.
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, February 26, 2026.
/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]
Colter Electric LLC
PO Box 3946
Flagstaff, AZ 86003
[email redacted]
Western River Customs LLC
42804 N 14th St
New river, AZ 85087-0901
[email redacted]
By: OAH Staff