ALJDEC - Licensing

2025A-13103-CHC-ROC · Registrar of Contractors · 2026-04-24

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Janae Lonski,

COMPLAINANT,

v.

ELDER CONTRACTING LLC,

License No. ROC 349755,

RESPONDENT.

No. 2025A-13103-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: April 21, 2026

APPEARANCES: Complainant Janae Lonski and Chad Lonski appeared on their own behalf. Investigator Patricia Schuette appeared on behalf of the Arizona Registrar of Contractors.

ADMINISTRATIVE LAW JUDGE: Kay Abramsohn

EXHIBITS ADMITTED INTO EVIDENCE: ROC Notice of Hearing Packet. Complainant Exhibits 1 through 11.

_____________________________________________________________________

FINDINGS OF FACT

Elder Contracting LLC. (Respondent) is the holder of License No. 349755, KB-1 Dual Building Contractor, issued by the Arizona Registrar of Contractors (Registrar or ROC) on January 1, 2024.

On or about August 25, 2025, Janae Lonski (Complainant) agreed to have Respondent perform remodeling work at her home. The contract amount was $63,058.16 and Complainant paid $31,529.00 to Respondent.

On or about December 17, 2025, the Registrar received a written complaint form (Complaint) against Respondent from Complainant alleging abandonment with respect to the remodeling project.

The Registrar assigned the Complaint to Investigator Patricia Schuette (Investigator) who conducted a jobsite inspection on January 15, 2026. Investigator found that no work, pursuant to the parties’ contract, had been performed by Respondent.

Investigator then issued a Written Directive (Directive) on January 15, 2026, that provided in pertinent part 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 2, 2026.

. . .

DIRECTIVE REQUIREMENTS

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

Complaint Item: 1- Abandonment. No work has been started entered

contract 8/25/25

Investigator’s Observation: Verified. No materials were left at jobsite, no

appropriate architectural drawings submitted to HOA, no permitting, and no work per the scope of the contract has been started. Respondent to proceed per the scope of work outlined in the contract.

Governing Rule: A.R.S. § 32-1154(A)(1) Abandonment of a

contract or refusal to perform after submitting a bid on work

without legal excuse for the abandonment or refusal.

Complaint Item: 2 - No architectural drawings were sent to HOA for

approval. Only renderings which were deemed insufficient.

Investigator’s Observation: Verified. Architectural drawings were to be

submitted to the HOA for approval as part of the scope of work outlined in

the contract. Respondent to proceed per the scope of work outlined in the

contract.

Governing Rule: A.R.S. § 32-1154(A)(1) Abandonment of a

contract or refusal to perform after submitting a bid on work

without legal excuse for the abandonment or refusal.

On February 9, 2026, the Registrar issued a Citation against Respondent, charging possible violations of A.R.S. § 32-1154(A)(1) and A.R.S. § 32-1154(A)(22).

On February 24, 2026, counsel for Respondent submitted an Answer to the Registrar. In its Answer, Respondent stated that Complainant had cancelled the contract on December 16, 2025 and had filed the Complaint the next day, positing, therefore, that Respondent had no duty to move forward on the contract. Respondent set forth a chronology of events and actions. Finally, Respondent indicated that it had filed for Chapter 11 Bankruptcy on November 24, 2025 and further opined that Complainant had no legal authority to require Respondent to perform on the contracts due to the automatic stay under 11 United Stated Code (USC) § 362(a).

On or about March 6, 2026, a Notice of Hearing was issued setting a hearing on April 21, 2026, at the Office of Administrative Hearings, an independent state agency. A copy of the Notice of Hearing was mailed and e-mailed to Respondent’s addresses of record.

The Office of Administrative Hearings issued an Order notifying the parties that the hearing would be conducted Virtually. The Order contained the virtual meeting link and phone numbers for the parties’ participation. The Order was e-mailed to Respondent’s address of record.

At hearing, Investigator testified regarding her investigation including the jobsite inspection and her review of the matter.

Complainant testified regarding the timeline of events.

Although the start of the hearing was delayed approximately 10 - 15 minutes, Respondent did not appear through an authorized member, employee, or attorney. Prior to the hearing date, Respondent did not request that the hearing be continued.

The hearing was conducted on April 21, 2026 and, at no time during the conducted hearing, did Respondent appear. Consequently, Respondent did not present any evidence to defend its license.

Administrative notice was taken of Respondent’s prior License record on April 24, 2026. Respondent’s ROC License 349775 has been revoked and there are eight open cases, one of which is the instant matter.

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 ‘proof which leads the [trier of fact] to find that the existence of the contested fact is more probable than its nonexistence.’”

Respondent was deemed to have received the Notice of Hearing by methods reasonably calculated to effect notice.

The evidence of record established that Respondent did not perform work pursuant to the parties’ contract. Thus, Respondent’s actions were not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent was in violation of Ariz. Rev. Stat. § 32-1154(A)(1).

The evidence of record established Respondent failed to complete the corrective work following the Directive being issued. Therefore, Complainant established that Respondent failed to take appropriate corrective action following the Directive from the Registrar in violation of A.R.S. § 32-1154(A)(22).

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall revoke Respondent’s License No. 349755.

It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to A.R.S. § 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 A.R.S. § 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.

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, April 24, 2026.

/s/ Kay A. Abramsohn

Administrative Law Judge

Transmitted electronically to:

Tom Cole, Director

Registrar of Contractors

Patricia Schuette, Investigator

[email redacted]

Janae Lonski

[email redacted]

[email redacted]

Elder Contracting LLC.

[email redacted]

[email redacted]

By: OAH Staff