ALJDEC

98F-2604-ROC · Registrar of Contractors · 1998-10-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

The above matters came on, respectively for hearing and for rehearing on October 20, 1998. The Complainant, R C I Systems, Inc., appeared through its President, Todd J. Little. Respondent, Gierczyk Development, Inc., was represented by its attorney, Richard K. Mahrle, Esq., and Respondent, C D C Builders, Inc., was represented by its attorney, Paul S. Harter.

FINDINGS OF FACT

1. Following a prolonged recess taken shortly after the formal opening of the scheduled consolidated hearing of these matters and after the start of the evidentiary presentations, 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, each of the individually named Respondents agreed to pay or tender, and Complainant agreed to accept, a specified total monetary amount no later than stated deadline dates, in full satisfaction of the complaints presently pending before the Registrar of Contractors. Complainant also agreed to withdraw both of its complaints and to consent to the entry of an Order by the Registrar of Contractors closing both of the within Citations. The settlement agreement also contemplated and provided that the making of the agreed monetary payment by either Respondent/Contractor was to be expressly without prejudice to the future assertion of its rights, if any, to reimbursement or recoupment of all or part of such payment from the other Respondent/Contractor as part of currently pending civil litigation between them.

3. The administrative disciplinary proceedings hereunder are effectively cut short by the entry into the above-described settlement agreement which is to be presented to the Registrar of Contractors for approval and adoption. Consequently, both Respondents must be and hereby are advised that any future breach of the payment terms of the settlement agreement will not only constitute grounds for the filing of a new complaint but also shall warrant treatment as a circumstance in aggravation.

4. All rights and defenses of the respective parties are deemed to have been merged into the settlement agreement, and if any new complaint is filed in the future or if any timely petition for rehearing of this matter is to be filed and granted in Case Number 98-2604, the sole issues for determination shall be whether each Respondent has performed its 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 settlement reached and submitted during the consolidated hearing of these matters, having been found to be reasonable and voluntarily made, warrants the termination of the instant consolidated hearing and the closing of the charges contained in both Citations and Complaints.

RECOMMENDED ORDER AND RECOMMENDED ORDER ON REHEARING

In view of the foregoing, it is recommended with respect to Case Number 98-2604 filed against the Class B-01 license of Gierczyk Development, Inc. that the entire Citation and Complaint applicable to such Respondent be closed.

It is further recommended on Rehearing, with respect to Case Number 98-2605 filed against the Class B-01 license of C D C Builders, Inc. that the entire Citation and Complaint applicable to such Respondent be closed. This portion of the Order entered by the Registrar in Case Number 98-2605 shall constitute a final administrative decision, reviewable pursuant to the provisions of A.R.S. §12-901.

Dated: October 21, 1998.

OFFICE OF ADMINISTRATIVE HEARINGS

_________________________________ Robert. I. Worth Administrative Law Judge

Original transmitted on _____________________

by: _____________________________ , to:

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

ATTN: Joyce Armijo

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