ALJDEC - Licensing

2025A-12389-CHC-ROC · Registrar of Contractors · 2026-05-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Raul Samano,

COMPLAINANT,

Hallmark Services Inc,

License No. ROC 336956,

RESPONDENT.

No. 2025A-12389-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: April 29, 2026 at 9:00am

APPEARANCES: Complainant Raul Samano appeared on his own behalf with witnesses Anabel Cabrera and Raymundo Bautista. Hector Nunez appeared on behalf of Respondent Hallmark Services, Incorporated with witness Frank Martinez. Investigator Todd Anderson appeared on behalf of the Arizona Registrar of Contractors. Spanish Interpreter Malbin Richardson appeared on behalf of Language Connect.

ADMINISTRATIVE LAW JUDGE: Nicole Robinson

EXHIBITS ADMITTED INTO EVIDENCE: Arizona Registrar of Contractors Notice of Hearing Packet (“Packet”).

FINDINGS OF FACT

Hallmark Services, Incorporated (“Respondent”) is the holder of License No. ROC 336956, first issued by the Arizona Registrar of Contractors (“Registrar”) on March 3, 2022.

On or about July 30, 2025, Raul Samano (“Complainant”) entered into a contract with Respondent for, among other things, remodel of an existing commercial building, to become a flower shop. The total amount of the contract was $78,000.00 which Complainant paid to Respondent, in full.

On or about November 28, 2025, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to the project.

The Registrar assigned the complaint to Investigator Todd Anderson. On January 8, 2026, Investigator Anderson conducted a jobsite inspection with both parties present.

On January 22, 2026, Investigator Anderson issued a 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 February 17, 2026.

. . . .

DIRECTIVE REQUIREMENTS

You are directed to remedy the following violations by the appropriate means:

Complaint Item: 1 - Plywood was installed poorly.

Investigator’s Observation: Verified. I observed both inadequately fastened sheathing as well as inconsistent gapping of the sheathing (ranging from approximately 1/8” to over 1⁄2”) between individual sections in several locations. I also observed that the sheathing did not extend all the way to the top of the parapet wall in several areas. Contractor shall correct by appropriate means

. . . .

Complaint Item: 2 - Plywood is not level

Investigator’s Observation: Verified. I observed some waviness of the sheathing in several locations. Not all panels were securely attached to the framing and some of the panel edges had no screws whatsoever. Contractor shall correct by appropriate means.

. . . .

Complaint Item: 4 - installed crooked plywood

Investigator’s Observation: Verified. The Property Owner directed me to an inconsistent cut to a section of sheathing where it butts up against the facade located on the south east corner of the building. This created an open space at the bottom which appeared to be in excess of 1”–2”. Installation requirements specify spacing between sheets to be at 1/8”. Contractor shall correct by appropriate means.

After the deadline in the directive expired, on or about February 26, 2026, Investigator Anderson was notified that no corrective work had been performed.

On February 27, 2026, 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

Hector Nunez, Respondent Qualifying Party, testified that he subcontracted the framer and asserted that the framer tried to go back to the worksite but Complainant refused. Mr. Nunez argued that due to a change order that Complainant had an outstanding amount of $8,000.00 that she refused to pay. Mr. Nunez testified that his attorney recommended to “hold back,” in regard to the project. Frank Martinez, Project Manager on Complainant’s project, was hired by Respondent and testified that Complainant’s spouse, Raymundo Bautista, informed him that Respondent could not perform corrective work until Complainant gave her permission. Complainant and Mr. Bautista testified that they never denied Respondent access from January 22, 2026 to February 17, 2026. Complainant testified that she was told by Respondent and/or Mr. Martinez that they would not fix any of the items in the Written Directive until they were paid the $8,000.00.

Investigator Anderson testified that Respondent did not request an extension of the Written Directive deadline.

Administrative notice was taken of Respondent’s prior License record on April 29, 2026. Such prior License record reflected that Respondent’s License No. ROC 336956 was Active. Such prior License record also reflected that there were no open complaints and no complaints resulting in discipline 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.”

In this case, the evidence clearly established via the jobsite inspection photographs admitted into evidence and the testimony presented 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).

Furthermore, the evidence established that Respondent did not attempt to complete the corrective work following the Directive being issued, despite whether or not there were change orders. 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 336956 for a period of one day.

It is further recommended that the Registrar require Respondent to pay the sum of $75.00 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, May 20, 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]

Hallmark Services Inc,

5820 N 72nd Dr

Glendale, AZ 85303

[email redacted]

Raul Samano

2318 W Washington St

Phoenix, AZ 85009

[email redacted]

Todd Anderson

[email redacted]

By: OAH Staff