ALJDEC - Licensing

2026A-00892-CHC-ROC · Registrar of Contractors · 2026-07-06

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Jesus Virgil,

COMPLAINANT

v.

Teflon Heating and Cooling LLC

License No. ROC 337454,

RESPONDENT

No. 2026A-00892-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: June 18, 2026

APPEARANCES: Complainant Jesus Virgil appeared on his own behalf. LaRon Fitch appeared on behalf of Respondent Teflon Heating and Cooling LLC. Registrar of Contractors Investigator John Peru appeared via Google Meet.

ADMINISTRATIVE LAW JUDGE: Adam D. Stone

EXHIBITS ADMITTED INTO EVIDENCE:

_____________________________________________________________________

FINDINGS OF FACT

Teflon Heating and Cooling LLC (Respondent) is the holder of License No. 337454 issued by the Arizona Registrar of Contractors (Registrar).

On or about March 12, 2025, Complainant hired Respondent install a new heat pump at his residence in Tolleson, Arizona. The total contracted price was $18,500.00.

On or about January 26, 2026, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to project.

The Registrar assigned the complaint to Investigator John Peru. The jobsite inspection was performed on March 7, 2026.

Investigator Peru then issued a Written Directive on or about March 24, 2026, which 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 Wednesday, April 8, 2026.

. . .

DIRECTIVE REQUIREMENTS

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

Complaint Item: 1 - Upstairs unit refrigerant leak.

Investigator’s Observation:

Verified.

At the time of this inspection, I observed the up-stairs AC Unit not operating within its normal capacity. The respondent has acknowledged an issue, and is aware of the incapacity of the unit.

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

A.R.S. § 32-1154(A)(3) - R4-9-108(A) Workmanship

Complaint Item: 2 - condensation line leak damaged ceiling

Investigator’s Observation:

Verified.

At the time of this inspection, I observed ceiling water damage on the Living Room Ceiling. Both parties acknowledged that a previous condensation line leak was the cause of the damage. The respondent shall ensure the leak has properly been corrected, and complete the corrections on the Living Room Ceiling Drywall by appropriate means. REF: (JSI PICS)

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

A.R.S. § 32-1154(A)(3) - R4-9-108(A) Workmanship

Complaint Item: 3 - Air handler downstairs runs all the time in coo

Investigator’s Observation:

Verified.

At the time of this inspection, this allegation has been substantiated. The complainant demonstrated the fan(Air Handler) to be running in cool mode, and not to be responding correctly via thermostat settings.

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

A.R.S. § 32-1154(A)(3) - R4-9-108(A) Workmanship

. . .

(All errors contained in the original).

A Compliance Jobsite Inspection was completed on April 14, 2026, and Investigator Peru noted the following in pertinent part:

Compliance Findings:

Complaint Item: 1 - Upstairs unit refrigerant leak.

Investigator’s Initial Observation: Verified.

At the time of this inspection, I observed the up-stairs AC Unit not operating within its normal capacity. The respondent has acknowledged an issue, and is aware of the incapacity of the unit. Compliance Observation:

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4- 9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

☒ CORRECTED ☐ NOT CORRECTED

Complaint Item: 2 - condensation line leak damaged ceiling

Investigator’s Initial Observation: Verified.

At the time of this inspection, I observed ceiling water damage on the Living Room Ceiling. Both parties acknowledged that a previous condensation line leak was the cause of the damage. The respondent shall ensure the leak has properly been corrected, and complete the corrections on the Living Room Ceiling Drywall by appropriate means. REF: (JSI PICS)

Compliance Observation:

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4- 9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

☒ CORRECTED ☐ NOT CORRECTED

Complaint Item: 3 - Air handler downstairs runs all the time in coo

Investigator’s Initial Observation: Verified.

At the time of this inspection, this allegation has been substantiated. The complainant demonstrated the fan (Air Handler) to be running in cool mode, and not to be responding correctly via thermostat settings.

Compliance Observation:

Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4- 9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

☐CORRECTED ☒ NOT CORRECTED

Note:

Complaint Item #3; Temporary thermostat was installed to allow manual shutoff of the fan (when cooling temp. is achieved). The correct thermostat needs to be installed and programmed correctly to maintain proper function of the HVAC Unit.. . .

On April 15, 2026, the Registrar issued a Citation against Respondent, charging possible violations of A.R.S. § 32-1154(A)(3) – R4-9-108(A), and A.R.S. § 32-1154(A)(22).

On or about April 30, 2026, Respondent submitted an Answer to the Registrar.

On or about May 13, 2026, a Notice of Hearing was issued setting a hearing on June 18, 2026, at the Office of Administrative Hearings, an independent state agency.

At hearing, Investigator Peru testified as to the Registrar’s involvement and the above timeline and findings. He testified that no representative from Respondent appeared at the Jobsite Inspection. Further, Investigator Peru testified that the only item left incomplete was the thermostat.

Complainant testified that it took Mr. Fitch a year to fix the issues he was having, and that was only after Complainant filed with the Registrar. Complainant testified that while Mr. Fitch made the two repairs he waited until the last day and that the thermostat was still left incomplete.

Mr. Fitch testified that he wished he could have provided better service, and was ready to replace/repair the thermostat, but it would not have been until after the Directive had expired, and Complainant would not allow him to come back to remedy the issue.

Administrative notice was taken of Respondent’s prior License record on July 6, 2026. Such prior License record reflected that Respondent’s License No. 337454 was first issued April 4, 2022. The license record also reflected that there was one open case, namely the present case.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction. See A.R.S. § 32-1101 et seq.

Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119(A) and A.A.C. R2-19-119(B)(1); see also Vazzano v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.” Morris K. Udall, Arizona Law of Evidence § 5 (1960).

The preponderance of the evidence established that there was a violation of A.R.S. § 32-1154(A)(3) – R4-9-108(A), as there were multiple issues with the workmanship of the installation of the heat pump.

Finally, the preponderance of the evidence credibly established that the work regarding the thermostat remained incomplete. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a written 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 suspend Respondent’s License No. 337454 for a period of one business day.

It is further recommended that the Registrar require Respondent to pay the sum of $150.00 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, July 6, 2026.

/s/ Adam D. Stone

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

Teflon Heating and Cooling LLC

[email redacted]

Jesus Virgil

[email redacted]

By: OAH Staff