ALJDEC

97F-2131-ROC · Registrar of Contractors · 1997-12-17

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

The above matter came on for hearing on December 17, 1997. The Complainant was represented by his attorney, Vincent J. Montell, Esq., and the Respondent was represented by its attorney, Julia E. Salazar, Esq.

FINDINGS OF FACT

1. Following a prolonged recess taken during the presentation of Complainant's case-in-chief, the parties confirmed to the Administrative Law Judge that they had concluded a settlement agreement, the essential terms of which were read onto the record.

2. Pursuant to the provisions of the parties’ settlement agreement, this pending administrative action and a related civil lawsuit were mutually resolved by the payment and acceptance of a specified monetary amount no later than a stated deadline date, payable through Respondent's attorney, in full satisfaction of all claims and/or counterclaims between the parties. Mutual releases were to be prepared, executed and exchanged,

and a filed lien was to be released. Complainant also agreed to withdraw his complaint, as filed with the Registrar, and to consent to the entry of an Order closing the within Citation. Respondent further agreed, for purposes of a proper disposition of this case and by way of effectuating the settlement agreement, to the entry of a finding that the charged out-of- scope provision had been violated, provided however that no disciplinary penalty greater than a formal admonition would be imposed.

3. Notice is taken of the Registrar's license records which reveal that, within a reasonable time following the receipt of notice that the bidding or performing of certain construction work may have been beyond the proper scope of the contracting license then held by Respondent, new specialty licenses were applied for and issued to Respondent which presently cover the type of work alleged to have been beyond the scope of its original license. These newly issued licenses remain current and in good standing.

4. All rights and defenses of the respective parties are deemed to have been merged into the settlement agreement, and if any timely petition for rehearing of this matter is to be filed and granted, or if any new complaint is filed in the future, the sole issues for determination shall be whether the parties have performed their respective obligations under the terms of the aforesaid settlement agreement

5. The terms of the foregoing settlement agreement appeared to be fair and reasonable under all the circumstances, and the agreement was determined to be the product of knowing and voluntary action on the part of each party.

CONCLUSIONS OF LAW

1. The policy of the law favors settlements of disputes, and adverse parties should be free to adjust their differences by entry into agreements or stipulations which should be recognized and given effect by all tribunals.

2. The contents of the parties' settlement agreement, as well as the entire case record herein, supports a determination that Respondent has violated the provisions of A.R.S.§32-1154A(17). However, the impact of such violation is significantly mitigated by the showing that Respondent obtained all required specialty licenses in a reasonably prompt manner and that all such licenses are presently in good standing.

3. The settlement reached and submitted during the hearing of this matter, having been found to be reasonable and voluntarily made, warrants the termination of the instant hearing and the closing of the charges contained in the Citation and Complaint.

RECOMMENDED ORDER

In view of the foregoing, it is recommended that the entire Citation and Complaint in Case No. 97-2131 be closed.

It is further recommended that Respondent be and hereby is formally admonished to exercise more care and diligence in the future when bidding or

performing construction work so as to accurately ascertain and verify that all contemplated work is within the proper scope of the license or licenses held by Respondent.

Dated: December 19, 1997. OFFICE OF ADMINISTRATIVE HEARINGS

______________________________________ Robert. I. Worth Administrative Law Judge

Original transmitted on _______________________

by: _____________________________ , To:

Mr. Michael P. Goldwater, Director Registrar of Contractors 800 West Washington, 6th Floor Phoenix, AZ 85007

ATTN: Joyce Armijo -----------------------

Office of Administrative Hearings 1700 West Washington, Suite 602 Phoenix, Arizona 85007 (602) 542-9826