ALJDEC - Licensing

2025A-12396-NPC-ROC · Registrar of Contractors · 2026-03-11

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Rugby Holdings LLC,

DBA: Rugby Architectural Building Products,

COMPLAINANT

v.

Cantara Build Inc.

License No. ROC 353056,

RESPONDENT

No. 2025A-12396-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: February 26, 2026

APPEARANCES: Michelle Milne appeared on behalf of Complainant Rugby Holdings LLC Billy Alcantara appeared on behalf of Respondent Cantara Build Inc.

ADMINISTRATIVE LAW JUDGE: Adam D. Stone

EXHIBITS ADMITTED INTO EVIDENCE: Complainant’s Exhibits 1-3 were admitted into evidence.

_____________________________________________________________________

FINDINGS OF FACT

On January 16, 2026, the Registrar of Contractors (“ROC”) issued a Notice of Hearing on Contested Case setting the matter for hearing on February 26, 2026, at the Office of Administrative Hearings.

On November 26, 2025, Complainant Rugby Holdings LLC, filed a complaint against Respondent Cantara Build Inc. alleging that Respondent owed Complainant monies in the amount of $11,501.83 on two unpaid invoices.

Through the citation and Notice of Hearing, ROC alleges that Respondent may have violated Ariz. Rev. Stat. section 32-1154(A)(10).

Respondent holds License No. 353056 issued by ROC and provided an Answer on December 31, 2025.

Complainant provided wood flooring planks/panels on a project for which Respondent was the general contractor.

Ms. Milne testified as to the invoices as follows:

Invoice [number redacted]-001 dated June 6, 2025, in the amount of $10,616.35.

Invoice [number redacted]-002 dated June 10, 2025, in the amount of $885.48.

Ms. Milne also testified that Mr.. Alcantara never mentioned concerns with the bowing of the materials, and at least initially, paid for the invoices on June 11, 2025, albeit with a check which was returned for insufficient funds.

Mr. Alcantara testified that the general contractor on the project shortened the time to complete the work so he had to use the panels, however he would not offer any guarantee to the general contractor because of the same. Further, Mr. Alcantara testified that he is currently involved in a lawsuit against the general contractor as he has yet to be paid for the project since the panels were installed.

CONCLUSIONS OF LAW

Unless otherwise provided by law, a party asserting a claim, right, or entitlement bears the burden of proof; a party asserting an affirmative defense has the burden of establishing the affirmative defense. The standard of proof on all issues in this matter is that of a preponderance of the evidence. Ariz. Admin. Code § R2-19-119.

“At a hearing on an agency action to suspend, revoke, terminate or modify on its own initiative material conditions of a license or permit, the agency has the burden of persuasion.” Ariz. Rev. Stat. § 41-1092.07(G)(2).

A preponderance of the evidence is:

The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Black’s Law Dictionary 1373 (10th ed. 2014).

Statutes should be interpreted to provide a fair and sensible result. Gutierrez v. Industrial Commission of Arizona, 226 Ariz. 395, 249 P.3d 1095 (2011)(citation omitted); State v. McFall, 103 Ariz. 234, 238, 439 P.2d 805, 809 (1968) ("Courts will not place an absurd and unreasonable construction on statutes.").

“Statutes shall be liberally construed to effect their objects and to promote justice.” Ariz. Rev. Stat. § 1-211(B).

The purpose of the Registrar’s licensing statutes is to protect the public from unscrupulous, unqualified, and financially irresponsible contractors. See Aesthetic Property Maintenance v. Capital Indem. Corp., 183 Ariz. 74, 900 P. 2d 1210 (1995).

Among the grounds for suspension or revocation of a contractor’s license is a “[f]ailure by [the] licensee . . . to pay monies in excess of seven hundred fifty dollars when due for materials or services rendered in connection with the licensee’s operations as a contractor when the licensee has the capacity to pay or, if the licensee lacks the capacity to pay, when the licensee has received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.” Ariz. Rev. Stat. § 32-1154(A)(10).

The preponderance of the evidence shows that Respondent owes Complainant more than $750.00 for materials purchased and work performed in connection with Respondent’s operations as a contractor. However, Mr. Alcantara presented credible evidence that he lacked the ability to pay the invoices, due to the lack of payment from the general contractor and the ongoing lawsuit regarding the same. Therefore, at least in this licensing action, the tribunal finds that Respondent had a valid defense for non-payment.

Therefore, the preponderance of the evidence shows that Respondent has not violated section 32-1154(A)(10).

RECOMMENDED ORDER

IT IS RECOMMENDED that the complainant against Cantara Build Inc. license number 353056 be dismissed.

Pursuant to A.R.S. § 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, March 11, 2026.

/s/ Adam D. Stone

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Tom Cole, Director

Registrar of Contractors

Cantara Build Inc.

[email redacted]

Rugby Holdings LLC

DBA: Rugby Architectural Building Products

[email redacted]

By: OAH Staff