OAH-20260429 State's Exhibits _ Murphy v. ELEGO Contracting LLC.pdf

2025A-10732-RFA-LS-ROC · Registrar of Contractors · 2026-04-29

Kristin K. Mayes Attorney General (Firm State Bar No. 14000) Mona Baskin Assistant Attorney General State Bar No. 013642 Licensing and Enforcement Section 2005 N. Central Ave. Phoenix, Arizona 85004-1592 Telephone: (602) 542-7990 Facsimile: (602) 364-3202 Attorneys for the Arizona Registrar of Contractors E-mail Address for Court Clerk Use Only: [email redacted] BEFORE THE ARIZONA REGISTRAR OF CONTRACTORS IN THE OFFICE OF ADMINISTRATIVE HEARINGS APRIL MURPHY, Case No.: 2025-10732 Complainant, OAH Docket No.: 2025A-10732-RFA-LS-ROC v. ELEGO CONTRACTING LLC, STATE’S EXHIBITS License No ROC 322419, (Administrative Law Judge Jenna Clark) Respondent. LIST OF EXHIBITS Exhibit # Description ROC-Bates # 1 Documentation from Underlying Investigation 001-024 • Registrar Licensed Complaint Form 002-003 • Jobsite Inspection Photos (11/06/25) 004-013 • Written Directive (11/06/25) 014-017 • Compliance Notes (12/10/25) 018-019 • Citation (12/11/25) 020-024 Final Administrative Decision and Order (Default) 025-028 3 Recovery Fund Documentation 029-039 • Recovery Fund Claim Form 030-032 • Merchants Bonding Company 033-035 • Warranty Deed 036-039

4 Recovery Fund Communications 040-058 • Letter to Complainant Requesting Documents 041-042 • Email Communications & Attachments 043-048 • Residential Seller’s Property Disclosure 049-058 Residential Resale Real Estate Purchase Contract 059-073 Bids 074-100 • Arizona Roofers 075-089 • ProGuard Roofing 090-097 • Valley Contracting LLC 098-100 Notice and Order of Recovery Fund Denial 101-106 Request for Hearing 107-112 Notice of Hearing on Appealable Agency Action 113-119 Order to Participate in the Hearing Via Google Meet 120-122 APPENDIX A A.R.S. § 32-1132 123-125 B A.R.S. § 32-1132.01 126-127 Subsequent Purchasers & the Recovery Fund C 128-130 Substantive Policy Statement Respectfully submitted this 29th day of April, 2026. Kristin K. Mayes Attorney General /s/ Mona Baskin Mona Baskin Assistant Attorney General Attorney for Registrar of Contractors

ORIGINAL of the foregoing e-filed this 29th day of April, 2026, with: Office of Administrative Hearings COPY of the foregoing e-mailed this 29 day of April, 2026, to: th

April Murphy 33311 W. Ardmore Rd. Tonopah, AZ 85354 [email redacted] Complainant ELEGO Contracting LLC 419 N. 41st St. Phoenix, AZ 85008 [email redacted] Respondent Arizona Registrar of Contractors Legal Department 1700 W. Washington, Ste. 105 Phoenix, AZ 85007 [email redacted] [email redacted] State Agency By: Emily Madsen Legal Secretary

Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. 2025A-10732-RFA-LS-ROC

Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address Tedi Quezada, ROC Legal Assistant II (602)771-6808 [email redacted] 4. Subject Matter of Expected Testimony

Tedi Quezada, ROC Legal Assistant II, will testify regarding the basis for the Notice of Administrative Award. Ms. Quezada will lay the foundation and establish the relevance for the State's Exhibits. Witness 1. Name 2. Telephone Number 3. Email Address Compalinant, Respondent and all witnesses identified. 4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. 2025A-10732-RFA-LS-ROC

Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name Documenation from Underlying Investigation Final Administrative Decision and Order (Default) Recovery Fund Documentation Recovery Fund Communications Residential Resale Real Estate Purchase Contract Bids Notice and Order of Recovery Fund Denial Request for Hearing Notice of Hearing Order to Participate in the Hearing Via Google Meet

APPENDIX A A.R.S. § 32-1132 B A.R.S. § 32-1132.01 C Subsequent Purchasers & the Recovery Fund Substantive Policy Statement

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No. 2025A-10732-RFA-LS-ROC

Mona Baskin Mona Baskin Digitally signed by Mona Baskin Date: 2026.04.29 11:19:32 -07'00' 04/29/2026 Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3 EXHIBIT 1 ROC-001 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

April Murphy Mailing Address (Enter jobsite in Contract/Project section) City State Zip

33311 w ardmore rd Tonopah Arizona 85354 Phone Number Email

(928) 830-5161 [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

ELEGO Contracting LLC ROC 322419 Street Address City State Zip

419 N 41st St Phoenix AZ 85008 Phone Number Email

[number redacted] Name of Person(s) Representing License

Hugo Gomez Contract/Project Information Contract Date Contract Amount Amount Paid

September 7, 2023 $405,000.00 $405,000.00 Date Work Started Date Work Stopped Date Work Was Completed

September 7, 2023 October 20, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

October 20, 2023 October 20, 2023 Jobsite Street Address City State Zip

33311 W Ardmore Rd Tonopah AZ 85354 Name of Construction Site Owner Construction Site Name (if applicable)

Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for Abandonment I have contacted the contractor by Have you filed a complaint in court? No Has any work been corrected? No

RCC099 12/05/18 Page 1 of 2 LES26-0187 ROC-002 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

The contract was Written All change orders were Written This project was Residential This project involved New Home

A building permit was obtained by N/A List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

Tried contacting the contractor for items and he stated sorry for the leaks , no longer in business and moved backed to Mexico. Allegations Listed on Complaint:

Foam Patio roof has cracks and active leaks and damage to dry wall

Garage roof has active leaks and wet interior wall

Master shower has hole in tile on shower floor and entrance to shower tile falling off due to poor grout work

Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

April Murphy \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 LES26-0187 ROC-003 LES26-0187

ROC-004 LES26-0187

ROC-005 LES26-0187

ROC-006 LES26-0187

ROC-007 LES26-0187

ROC-008 LES26-0187

ROC-009 LES26-0187

ROC-010 LES26-0187

ROC-011 LES26-0187 ROC-012 ROC-013 This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

LES26-0187 ROC-014 LES26-0187 ROC-015 LES26-0187 ROC-016 ROC-017 LES26-0187 ROC-018 LES26-0187 ROC-019 LES26-0187 ROC-020 [email redacted]

LES26-0187 ROC-021 LES26-0187 ROC-022 LES26-0187 ROC-023 / Shaquira Adebule

LES26-0187 ROC-024 EXHIBIT 2 ROC-025 LES26-0187

ROC-026 LES26-0187

ROC-027 LES26-0187

ROC-028 EXHIBIT 3 ROC-029 ARIZONA REGISTRAR OF CONTRACTORS

IMPORTANT: Answer all questions and submit all required documents to avoid delayed processing or rejection of your claim form.

:

. :

LES26-0187 1700 W. Washington Street, Suite 105 Phoenix AZ 85007-2812 602.542.1525 Toll Free 877.692.9762 roc.az.gov ROC-030 ARIZONA REGISTRAR OF CONTRACTORS

(If you need additional lines, you may duplicate this page.)

(If you need additional lines, you may duplicate this page.)

1700 W. Washington Street, Suite 105 Phoenix AZ 85007-2812 LES26-0187 602.542.1525 Toll Free 877.692.9762 roc.az.gov

ROC-031 ARIZONA REGISTRAR OF CONTRACTORS

All Claimant(s) must sign this verification. I verify that the foregoing is true and correct to the best of my knowledge and further that I actually occupy or intend to occupy the subject property as my primary residence.

1700 W. Washington Street, Suite 105 Phoenix AZ 85007-2812 LES26-0187 602.542.1525 Toll Free 877.692.9762 roc.az.gov

ROC-032 Received Legal 01/30/2026

LES26-0187 ROC-033 Received Legal 01/30/2026

LES26-0187

ROC-034 Received Legal 01/20/2026

ROC-035 LES26-0187

ROC-036 LES26-0187

ROC-037 LES26-0187

ROC-038 LES26-0187

ROC-039 EXHIBIT 4 ROC-040 LES26-0187

ROC-041 LES26-0187

ROC-042 Received Legal 01/30/2026

LES26-0187

ROC-043 Received Legal 01/30/2026

LES26-0187

ROC-044 Received Legal 01/30/2026

LES26-0187

ROC-045 Received Legal 01/20/2026

LES26-0187

ROC-046 Received Legal 01/20/2026

ROC-047 Received Legal 01/20/2026

LES26-0187 ROC-048 Received Legal 01/20/2026

ROC-049 Received Legal 01/20/2026

ROC-050 Received Legal 01/20/2026

ROC-051 Received Legal 01/20/2026

ROC-052 Received Legal 01/20/2026

ROC-053 Received Legal 01/20/2026

ROC-054 Received Legal 01/20/2026

ROC-055 Received Legal 01/20/2026

ROC-056 Received Legal 01/20/2026

ROC-057 Received Legal 01/20/2026

ROC-058 EXHIBIT 5 ROC-059 LES26-0187

ROC-060 LES26-0187

ROC-061 LES26-0187

ROC-062 LES26-0187

ROC-063 LES26-0187

ROC-064 LES26-0187

ROC-065 LES26-0187

ROC-066 LES26-0187

ROC-067 LES26-0187

ROC-068 LES26-0187

ROC-069 LES26-0187

ROC-070 ROC-071 2929 E. Camelback Road File Number: Suite 204 Loan Number: Phoenix, AZ 85016 Loan Amount: (602) 424-7300 Sales Price: Close Date: Disbursement Date: Type: Property: Certified True and Correct Copy

American Title Service Agency, LLC (51)

Borrower(s):

Sellers:

Sale Price of Property $405,000.00 $405,000.00 Deposit $4,000.00 Seller Concession $4,050.00 $4,050.00 Closing Funds from JOSHUA FUENTES and APRIL MURPHY $41,581.14

County Taxes 7/1/2023 to 10/20/2023 @ $86.10/Year $26.18 $26.18

Payoff of First Mortgage Loan $251,808.21 Principal: $250,000.00 Interest, 10/17/2023 to 10/20/2023 @$82.19/day: $246.57 Interest 9/28-10/17: $1,561.64 Payoff of Second Mortgage Loan $20,143.00 Principal: $20,000.00 Transaction Fee: $13.00 Recording Fee: $30.00 Quote Fee: $100.00 Recording Fee to WestStar Pacific Mortgage -$30.00

Real Estate Commission to Lanier Real Estate, LLC $6,075.00 Real Estate Commission to West USA Realty $10,125.00

Loan Amount $370,878.00 0.9780% of Loan Amount (Points) $3,564.14 Appraisal Fee to Home Value Real Estate, LLC (POC $650.00 by JOSHUA FUENTES and APRIL MURPHY) Credit Report to XACTUS $134.00 Broker Compensation to Horizon Funding, LLC (POC $8,344.76 by PennyMac Loan Services, LLC) Administration Fee to PennyMac Loan Services, LLC $1,014.00 MERS(R) Registration Fee to MERS $23.70 Mortgage Insurance Premium to HUD $6,378.75

File Number: 241400 1 of 2 LES26-0187 ROC-072 Verification Fee to XACTUS / Horizon Funding, LLC $54.95 Flood certification to Credco CoreLogic Flood $9.00 Prepaid Interest ( 68.5898 per day from 10/20/2023 to 11/1/2023 ) $823.08 Homeowner's Insurance Premium ( 12 mo.) to Homesite Insurance $867.00 Company Homeowner's Insurance $72.25 per month for 3 mo. $216.75 Property Taxes $140.00 per month for 2 mo. $280.00 Aggregate Adjustment -$72.25

Title - Lender's Title Insurance to American Title Service Agency $1,096.20 Title - Owner's Title Insurance to American Title Service Agency $1,265.00 Title - * ALTA 9-06 (Restrictions, Encroachments, Minerals)(Loan $100.00 Policy) Endorsement(s) to American Title Service Agency Title - ALTA 8.1-06 (Environmental Protection Lien)(Residential) $100.00 Endorsement(s) to American Title Service Agency Title - LTAA 3R (Restrictions, Easements and Minerals)* Endorsement(s) to American Title Service Agency Title - LTAA 5 (Type of Improvements)* Endorsement(s) to American Title Service Agency Title - Electronic Document Recording to American Title Service $10.00 $5.00 Agency Title - Settlement or closing fee to American Title Service Agency $801.00 $561.00 Title - Reconveyance Tracking Fee to American Title Service Agency $100.00 Title - Closing Protection Letter ( Lender) to American Title Service $25.00 Agency Title - Closing Protection Letter (Buyer) to American Title Service $25.00 Agency

Recording fees: Deed $30.00 $30.00 Mortgage $30.00 $30.00 Release $30.00 $30.00

Septic Transfer to Maricopa County Environmental Services $25.00 $25.00 Department #401-42-571 1st 1/2 2023 to Maricopa County Treasurer $43.05

$420,535.32 $420,535.32 $294,226.44 $405,000.00

$0.00 $110,773.56

File Number: 241400 2 of 2 LES26-0187 ROC-073 EXHIBIT 6 ROC-074 LES26-0187

ROC-075 ROC-076 LES26-0187

ROC-077 ROC-078 LES26-0187

ROC-079 LES26-0187

ROC-080 LES26-0187

ROC-081 LES26-0187

ROC-082 LES26-0187

ROC-083 ROC-084 LES26-0187

ROC-085 LES26-0187

ROC-086 LES26-0187

ROC-087 LES26-0187

ROC-088 ROC-089 LES26-0187

ROC-090 LES26-0187

ROC-091 LES26-0187

ROC-092 LES26-0187

ROC-093 LES26-0187

ROC-094 LES26-0187

ROC-095 LES26-0187 ROC-096 LES26-0187

ROC-097 ROC-098 LES26-0187

ROC-099 ROC-100 EXHIBIT 7 ROC-101 LES26-0187

ROC-102 LES26-0187

ROC-103 LES26-0187

ROC-104 LES26-0187

ROC-105 LES26-0187

ROC-106 EXHIBIT 8 ROC-107 Received 2/27/2026 ROC Legal

February __ _, 2026 Arizona Registrar of Contractors 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007

Re: Case No. 2025-10732 Complainant: April Murphy Respondent: ELEGO Contracting

To the Arizona Registrar of Contractors:

Complainant, April Murphy, respectfully submits this formal Request for Reconsideration and Review of the determination regarding eligibility for recovery under the Arizona Residential Contractors’ Recovery Fund pursuant to A.R.S. § 32-1131 et seq. and enforcement provisions under A.R.S. § 32-1154.

I. PAYMENT TO THE CONTRACTOR WAS MADE

The determination appears to conclude that because no separate payment was made directly to ELEGO Contracting for repair work, Complainant was not “damaged.” This conclusion misapplies the statutory framework.

1. ELEGO Contracting was the builder and contractor of record for the subject’s new construction home.

2. The home was purchased in 2023 for $405,000.00.

3. The full purchase price was paid at closing.

construction of the home.

Under A.R.S. § 32-1131(3), an “injured person” includes a residential property owner who

price paid at closing constitutes payment for construction services rendered by the licensed contractor.

II. CONTRACTOR VIOLATIONS AND DEFECTIVE WORKMANSHIP

Substantial construction defects were discovered, including:

LES26-0187 ROC-108 Received 2/27/2026 ROC Legal

- Cracked foam patio roof

- Patio roof leaks

- Garage roof leaks

- Holes and construction defects in the master shower

These conditions constitute defective workmanship and violations under A.R.S. § 32- 1154(A), including departure from building codes, failure to perform work in a workmanlike manner, and failure to take corrective action.

III. ACTUAL DAMAGES EXIST

Complainant now faces substantial out-of-pocket repair expenses due to defective construction. Under A.R.S. § 32-1132(A), the Residential Contractors’ Recovery Fund exists to compensate injured persons who have sustained actual damages due to a licensed contractor’s violation.

The damage arose when payment was made for construction, the construction was defective, and the contractor refused to remedy the defects.

IV. REQUEST FOR RELIEF

Complainant respectfully requests:

1. Reconsideration of the Recovery Fund determination.

-1131.

4. Further proceedings consistent with Recovery Fund protections.

EXHIBITS

Exhibit A – Closing Disclosure / HUD-1 Settlement Statement

Exhibit B – Purchase Agreement identifying ELEGO as builder

Exhibit C – Proof of Contractor License

Exhibit D – Photographs of cracked patio roof

Exhibit E – Photographs of garage roof leaks

Exhibit F – Photographs of master shower defects

Exhibit G – Contractor refusal communications

LES26-0187 ROC-109 Received 2/27/2026 ROC Legal

Exhibit H – Inspection report

Exhibit I – Repair estimates

Respectfully submitted,

/s/April Murphy

LES26-0187 ROC-110 Received 2/27/2026 ROC Legal

ROC-111 Received 2/27/2026 ROC Legal

LES26-0187

ROC-112 EXHIBIT 9 ROC-113

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

April Murphy, Case No. 2025-10732 COMPLAINANT, Docket No.: 2025A-10732-RFA-LS-ROC v.

ELEGO Contracting LLC, NOTICE OF HEARING ON License No. ROC 322419, APPEALABLE AGENCY ACTION RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: May 6, 2026 9:00 AM Jenna Clark, Administrative Law Judge Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person. If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge in the Arizona Office of Administrative Hearings (“OAH”), and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case. 1 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-114 STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings on appealable agency actions under Title 32, Chapter 10 are conducted pursuant to Title 41, Chapter 6, Article 10. A.R.S. § 32-1156. The statutes and rules governing the hearing can be found at A.R.S. §§ 41-1092 to -

1092.12, and Arizona Administrative Code (“A.A.C.”) R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

The following Arizona statutes are rules are relevant to this matter:

● Title 32, Chapter 10, Article 2.1 of the Arizona Revised Statutes (A.R.S. §§

32-1131 – 32-1140)

SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED Complainant has appealed the Registrar’s determination regarding Complainant’s Recovery Fund Claim Denial. The Registrar’s determination was made pursuant to A.R.S. §§ 32-1132 to 32-1133.01. RIGHT TO BE REPRESENTED Respondent may be represented by an attorney. A.R.S. § 41-1092.07(B). If Respondent is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-1156(B). HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 2 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-115 to -1092.12, and A.A.C. R2-19-101 to -122. Respondent should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/. NOTE: The Arizona Office of Administrative Hearings has directed that all hearings scheduled on or after Monday, August 2, 2021 shall be conducted as follows: (1) Unless the Notice of Hearing provides otherwise, hearings will be held in-person at the Office of Administrative Hearings in Phoenix. Hearings may also be conducted

by either video conference or telephone.

(2) Parties or witnesses wishing to appear by video conference or telephone may do so

upon request. A request to appear by video conference or telephone must be submitted

to the assigned administrative law judge no later than seven (7) calendar days prior to

the hearing date. If a party or witness does not file a request to appear by video

conference or telephone, the administrative law judge will presume that the party or witness will attend the hearing in-person. (3) Additional information, including standard to follow for in-person hearings, may be found at https://www.azoah.com/COVID_Advisements.html. REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s witnesses and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s witnesses or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date. 3 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-116 CHANGE OF ADDRESS Respondent must inform the Registrar and the OAH of any change of address within five days of the change. A.R.S. § 41-1092.04. SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS Respondent must be prepared to present evidence in support of its case. If Respondent wants to obtain testimony from a witness or documents not in the party’s possession, Respondent must prepare and file a written subpoena for the administrative law judge to

review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be

found on the OAH’s website at www.azoah.com. Respondent must serve notice on all the

parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT

At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the OAH. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf. CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may 4 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-117 be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the OAH, directed to the assigned administrative law judge, and transmitted to the Registrar and all other parties. The assigned administrative law judge may be found on the OAH’s web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the OAH, directed to the assigned administrative law judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail

good cause for why the date of the hearing should be advanced or delayed, and the position of

all other parties regarding the advancement or delay.

A party may also file a motion asserting a right to an expedited hearing upon a showing of

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the OAH of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated March 17, 2026. . By: /s/ Tedi Quezada Tedi Quezada Legal Assistant II Legal Department Arizona Registrar of Contractors

5 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-118 Copy mailed via USPS First Class mail March 17, 2026 to: Respondent ELEGO Contracting LLC 419 N 41st St Phoenix, AZ 85008 Complainant April Murphy 33311 W Ardmore Rd Tonopah, AZ 85354

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Complainant, Arizona Registrar of Contractor’s Counsel Assistant Attorney General, at [email redacted] Case No. 2025-10732

6 of 6

REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 LES26-0187 Telephone (602)542-1525 Toll Free (877)692-9762 Lg128 6/21

ROC-119 EXHIBIT 10 ROC-120 ; Sv w ^ xyyS ^ xy z SvS whzwS ^ ^zhSv b 91)#* _-)1,2E G$C J>J 9k > Jkj 9kQ kjBP PB_TQ9|G9G} W @C xh ^h X iQi~B P$%")(."#%3 QQP Q#.!%+! G$C jBP JJ E Y ji TBG<iG} Z [ T-)+-(%" "$ ",! G

;; Ml¢ l£ MM¥ R RR£ ;7 RR£ ¥MM¥ R M § m§ m§ l Ml¢ M¢R ;b o¶omnnom«n n «o¶ « ¶ ;W ;X P*#.U $% ",! ~$3*! _!!" @#/!$ .$%0!)!%.! *#%U #0 2$- L#+, "$ &$#% 42 @#/!$ .$%0!)!%.!C }$ &$#% 42 "!*!1,$%!E 1*!(+! /#(* ",! "!% /#3#" "!*!1,$%! %-84!)C $- L#** ;Y ",!% 4! #88!/#("!*2 1)$81"!/ "$ !%"!) ",! T|G 0$**$L!/ 42 ",! +#3%C ;Z 1()"2 8(2 (*+$ (11!() #% 1!)+$% 0$) ",#+ 8(""!) (" ",! B00#.! $0 9/8#%#+")("#@! ;[ K!()#%3+ #% T,$!%#¡C p 5 F5?=q :AV6A =H 5FF65? :I F6?AHI Fa65A6 5r :A6 =V6 pp: 6 Hp ;c r :I:A=?5=: 6 65?:IsA 5= a65A= r5qA F?:H? =H V65?:Is =V5= qH :aa 6 5FF65?:Is :I F6?AHI 7N 7; 9%2 /$.-8!%"+ 2$- 1*(% "$ -+! /-)#%3 ",! ,!()#%3 +,$-*/ 4! +-48#""!/ "$ ",! B00#.! $0 9/8#%#+")("#@! K!()#%3+ (%/ 1)$@#/!/ "$ ",!

ttO D dt u»¿OeOf\]g\O D Dg]Oe f ; ZWN Df\ u»g¿f \]DD\ d D] D D dDeO u]O deg [XNNZ YN7 XW7 c[7Y LES26-0187

ROC-121 +""12N@@OOO3$P!$+3,!)@QR$/7

LES26-0187

ROC-122 APPENDIX A ROC-123 32-1132. Residential contractors' recovery fund; claimants; eligibility; definition

A. The residential contractors' recovery fund is established to be administered by the registrar for the benefit of claimants that are damaged by an act, representation, transaction or conduct of a residential contractor that is licensed pursuant to this chapter and that is in violation of this chapter or the rules adopted pursuant to this chapter.

B. Only the following claimants are eligible for an award from the residential contractors' recovery fund:

1. An individual who both:

(a) Owns residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.

(b) Actually occupies or intends to occupy the residential real property described in subdivision (a) of this paragraph as the individual's primary residence.

2. A limited liability company to which both of the following apply:

(a) The limited liability company owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.

(b) At least one of the limited liability company's members actually occupy or will occupy the residential real property as described in subdivision (a) of this paragraph as their primary residence.

3. A trust to which all of the following apply:

(a) The trust is a revocable living trust.

(b) The trust owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.

(c) All of the trust's trustors actually occupy or intend to occupy the residential real property described in subdivision (b) of this paragraph as their primary residence.

4. A planned community as defined in section 33-1802 or unit owners' association as defined in section 33-1202 if both:

(a) The builder or developer transferred control to the planned community as defined in section 33-1802 or unit owners' association as defined in section 33-1202.

(b) A licensed residential contractor's failure to adequately build or improve a residential structure or appurtenance caused damage to the common elements within the complex.

5. A lessee of residential real property that meets all of the following:

(a) Contracts directly with a residential contractor or indirectly with a subcontractor of the residential contractor.

ROC-124 (b) Actually occupies or intends to occupy the residential real property described in subdivision (a) of this paragraph as the lessee's primary residence.

(c) Is damaged by the licensed residential contractor's failure to adequately build or improve a residential structure or appurtenance.

C. In order for a claimant to be eligible for an award from the residential contractors' recovery fund, the contractor whose actions damaged the claimant must have been appropriately licensed at one of the following times:

1. The date that the underlying contract was signed.

2. The date that the first payment was made.

3. The date that the underlying work first commenced.

D. For the purposes of this section, "appropriately licensed" means the residential contractor held a valid residential contractor license that was issued pursuant to this chapter and that was not canceled, in inactive status, expired, suspended or revoked.

ROC-125 APPENDIX B ROC-126 32-1132.01. Actual damages; fund; limitations; definition

A. An award from the residential contractors' recovery fund is limited to residential real properties. The fund may not issue an award covering damages to commercial property.

B. An award from the residential contractors' recovery fund may not exceed the actual damages suffered by the claimant as a direct result of a contractor's violation. Actual damages:

1. May not exceed an amount necessary to complete or repair a residential structure or appurtenance within residential property lines.

2. Must be established by bids supplied by or the value of work performed by a person that is licensed pursuant to this chapter if the person is required to be licensed pursuant to this chapter.

C. If the claimant paid a deposit or down payment and no actual work is performed or materials are delivered, the claimant's actual damages are the exact dollar amount of the deposit or down payment plus interest at the rate of ten percent a year from the date the deposit or down payment is made, but may not exceed $30,000. Interest may not be paid from the fund on any other awards under this chapter unless ordered by a court of competent jurisdiction.

D. The maximum individual award from the residential contractors' recovery fund is $30,000. An individual claimant may not be awarded more than the maximum individual award.

E. Monies in the residential contractors' recovery fund may not be awarded for attorney fees or costs, except in contested cases appealed to the superior court.

F. If the claimant has recovered a portion of the claimant's loss from sources other than the fund, the registrar shall deduct the amount recovered from other sources from the amount of actual damages suffered pursuant to subsection B of this section and direct the difference, not to exceed $30,000, to be paid from the fund.

G. The claimant may not be the spouse of the residential contractor or the personal representative of the spouse of the residential contractor.

H. For the purposes of this section, "actual damages" means the reasonable cost of completing the contract and repairing the contractor's defective performance, minus the part of the contract price still unpaid.

ROC-127 APPENDIX C ROC-128 Subsequent Purchasers and the Recovery Fund Published as Substantive Policy Statement 2021.01 by the Arizona Registrar of Contractors

Notice Required by A.R.S. § 41-1091 This substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona administrative procedure act. If you believe that this substantive policy statement does impose additional requirements or penalties on regulated parties you may petition the agency under section 41-1033, Arizona Revised Statutes, for a review of the statement.

ROC-129 Applicable Laws • A.R.S. § 32-1132(A) • A.R.S. § 32-1132.01(B) • A.R.S. § 32-1132(B) • A.R.S. § 32-1133.01(A) Substantive Policy Statement Generally, a claimant who is damaged because of a contractor’s violation may apply to the Residential Contractor’s Recovery Fund. A.R.S. § 32-1133.01(A). “However, the Fund is not and was never intended to serve as a panacea for every ill-advised construction contract.” Ramsey v. Ariz. Registrar of Contractors, 241 Ariz. 102, 107, 384 P. 3d 316, 321 (App. 2016). Instead, the “general purpose [of the recovery fund is to make] a homeowner who suffers from a contractor’s misdeeds ‘whole.’” Id. Notably, an award “may not exceed the actual damages suffered by the claimant as a direct result of a contractor’s violation.” A.R.S. § 32-1132.01(B). The recovery fund statutes do not require that a claimant contract directly with the contractor See Pinnamaneni v. Ariz. Registrar of Contractors, 237 Ariz. 147, 151, 347 P. 3d 593, 597 (App. 2015). To be “eligible for an award,” a claimant must both own “residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance”, and actually occupy or intend to occupy it as their primary residence. A.R.S. § 32-1132(B). A purchaser of residential property damaged by a licensed residential contractor may not receive a payout if: (1) The purchaser knew of the defect prior to purchasing the property; (2) The purchaser could have discovered the defect by reasonable inspection; or (3) The sales contract included an “as-is” clause which included the claimed defective work. Prohibiting awards in these situations is consistent with the purpose of the Fund, which is established “for the benefit of a claimant damaged by an act, representation, transaction or conduct of a residential contractor….” A.R.S. § 32-1132(A) (emphasis added). However, a “person who purchases a damaged residence at a discounted price from an owner who hired a contractor who caused the damage” is not damaged for purposes of the recovery fund because the discounted purchase price reflects the damage to the property. McMurren v. JMC Builders, Inc., 204 Ariz. 345, 351, 63 P.3d 1082, 1088 (App. 2003). Required Documentation from Subsequent Purchasers When applying for a payout from the Recovery Fund, in addition to the normally required documentation (e.g. contract with licensed residential contractor, proof of payment, deed, etc.), a subsequent purchaser must also provide the Registrar with: • Sales contract and addendums/attachments; • Seller Property Disclosure Statement (SPDS); • Third-party home inspection report; and • Any additional agreements with the contractor that performed the work.

ROC-130