ALJDEC - Licensing

2026A-02207-NPC-ROC · Registrar of Contractors · 2026-07-01

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Modern Lift Inc.,

COMPLAINANT,

v.

3R Construction Group LLC

License No. ROC 34179 and 332141

RESPONDENT.

No. 2026A-02207-NPC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: June 17, 2026 at 3:00pm

APPEARANCES: Jessica Riley appeared on behalf of Complainant Modern Lift, Incorporated with witness Amelia Gomez. Dawn Rivera appeared on behalf of Respondent 3R Construction Group, LLC with witness Rene Rivera.

ADMINISTRATIVE LAW JUDGE: Nicole Robinson

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

FINDINGS OF FACT

3R Construction Group, LLC (“Respondent”) is the holder of License Nos. ROC 341791 (KB-1 Dual Building Contractor) and 332141 (CR-61 Carpentry, Remodeling and Repairs), first issued by the Registrar of Contractors (“Registrar”) on November 17, 2022 and February 3, 2021, respectively.

On or about February 25, 2026, Modern Lift, Incorporated (“Complainant”) filed a Complaint against Respondent with the Registrar alleging that Respondent had failed to pay Complainant the sum of $29,298.18 for equipment rental on a church building project located in Phoenix, Arizona.

Complainant reopened Respondent’s credit application in July 2025 and rented several pieces of heavy equipment to Respondent. Complainant began to invoice Respondent which became past due in October 2025. Complainant suspended Respondent’s account and repossessed the rental equipment from the church building project’s worksite due to non-payment.

The parties were unable to resolve their differences, and Complainant requested an administrative hearing. On March 25, 2026, the Registrar then issued a Citation for alleged violation of Ariz. Rev. Stat. § 32-1154(A)(10).

The Citation requested that Respondent file a written answer by April 9, 2026. Respondent filed its answer by email on April 9, 2026, stating in pertinent part, “Please be advised that the full amount due must be paid no later than April 30, 2026. Once the payment is received, we will provide you with a receipt for your records.” Respondent did not assert that it lacked the capacity to pay the amount Complainant asserted was due.

Hearing Evidence

Jessica Riley, Account Receivable Manager, and Amelia Gomez, Vice President and Managing Partner, testified on behalf of Complainant business. Respondent presented the testimony of Rene Rivera, owner of Respondent company, and Dawn Rivera, Operations Manager. Administrative notice was taken of the Registrar’s packet which includes the Notice of Hearing.

Ms. Gomez testified that she became aware that Respondent was paid money which was approved by the Board of Directors for the church project and none of that money was paid to Complainant. Ms. Riley testified that Respondent cut Complainant three checks and when she tried to cash them, the checks bounced and they have never been paid.

Mr. Rivera testified and confirmed that Respondent did receive approximately $1,310,000.00 for work on the church project which he believed was about 50% complete. Mr. Rivera testified that he promised he would pay Complainant, however, the money that had been received went to pay for workers and other subcontractors.

CONCLUSIONS OF LAW

The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by a preponderance of the evidence.

A preponderance of the evidence is “such proof as convinces the trier of fact that the contention is more probably true than not.”

Ariz. Rev. Stat. § 32-1154(A)(10) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license,

[f]ailure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless the licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

The purpose of the Registrar’s licensing statutes is to protect the public from unscrupulous, unqualified, and financially irresponsible contractors.

The preponderance of the evidence shows that Respondent owed Complainant more than $750.00 for materials/services provided in connection with Respondent’s operations as a contractor.

In this case, the evidence clearly established that Respondent owed a total amount of $29,298.18 for materials provided. Furthermore, Respondent failed to establish by a preponderance of the evidence that it lacked the ability to pay Complainant for the goods supplied.

Therefore, Complainant established that Respondent violated Ariz. Rev. Stat. § 32-1154(A)(10) by failing to pay Complainant $29,298.18 for services or materials rendered in connection with Respondent’s contracting business. As such, grounds exist to impose discipline against Respondent’s license.

RECOMMENDed order

Based on the foregoing,

It is recommended that the Registrar suspend Respondent’s License No. ROC 34179 and 332141 issued by the Registrar until it has provided to the Registrar, and the Registrar has accepted, documents that establish that it has paid Complainant $29,298.18 in certified funds.

It is further recommended that when and if the Registrar receives and accepts Respondent’s evidence that it has paid Complainant $29,298.18 in certified funds, the Registrar may close the Complaint in Case No. 2026A-02207.

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, July 1, 2026.

/s/ Nicole Robinson

Administrative Law Judge

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

Tom Cole, Director

Registrar of Contractors

3R Construction Group LLC

[email redacted]

Modern Lift Inc

[email redacted]

By: OAH Staff