ALJDEC

99F-1911W-ROC · Registrar of Contractors · 1999-06-23

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 23, 1999 APPEARANCES: Thomas Broich, president, for the Corporate Complainant Chad E. George, Respondent, in his own behalf ADMINISTRATIVE LAW JUDGE: Allen Reed _____________________________________________________________________ Findings of Fact The parties had an ongoing business relationship since 1997. The Complainant supplied heating and air conditioning sheet metal, ductwork and related materials to the Respondent. There were no problems in the billing and payment of 39 invoices prior to August of 1998. The eight invoices which are at issue in this proceeding concern materials fabricated by the Respondent for eight different orders in August, September and October, 1998. These invoices, amounting to $3,120.00, were sent to the Respondent who did not pay them because he could not identify some of the jobs to which the invoice related. Often when placing an order with the Complainant, the Respondent would also fax a work sheet with specifications. The order was usually received by Jim Mayer (Mayer) who transmitted it to the metal shop to produce the required items according to the specifications. Once the product was fabricated, the Complainant would contact the Respondent that it was ready for pick up. Mayer would sometimes help load the materials when they were picked up. Some of the Complainant’s orders were received by Bob Wilson (Wilson) who would prepare a cut sheet with the specifications for the job. Wilson now works for the Respondent. The invoices were created by Mayer at various times. This could be when the materials were manufactured, at the time they were picked up or even days after they had been picked up. Mayer kept some of the fax sheets (only one was submitted in evidence), and cut sheets, but others were apparently lost or discarded. The invoices would then be sent to the Complainant’s office for billing. Mayer has a hearing impairment and the Respondent preferred placing orders with Wilson. The evidence shows that the following invoices in the total amount of $2,170.00 are properly payable to the Complainant: No. 0093, the Ross job, fax attached, $625.00; No. 0220, supported by the Wilson “cut sheet” listing the Respondent, $693.00; No. 0113, supported by the Wilson “cut sheet” listing the Respondent, $120.00; No. 0112, supported by Wilson’s “cut sheet” and Mayer’s testimony that Wilson told him the order was for the Respondent, $552.00; No. 0212, Mayer testified he took this order from the Respondent and made the notes and diagram on the attached sheet, $80.00. The invoices in the amount of $1,050.00 for which insufficient evidence was presented to show that they are properly payable by the Respondent are: No. 0034, the Respondent testified the person signing the invoice was not taking delivery for him or one of his employees, $210.00; Nos. 3202 ($650.00) and 32994 ($190.00), Mayer testified he could not find supporting “cut sheets” for the invoices, nor provide any additional evidence that would credibly establish the invoices were properly payable. Conclusions of Law The Citation and Complaint allege violation of A.R.S. §32-1154(A)(7), wrongful or fraudulent act with substantial injury and (A)(11), failure to pay for materials or services rendered in connection with a licensee’s operations as a contractor. The evidence establishes that the Respondent owes $2,170.00 to the Complainant for materials in connection with the Respondent’s operations as a contractor. The violation of A.R.S. §32-1154(A)(11) is established. No violation of A.R.S. §32-1154(A)(7) is found. Recommended Order In view of the foregoing it is recommended commencing on the effective date of the Order entered in this matter, that the Class L-39 license and the Class 39R license of the Respondent shall be suspended until such time as the Registrar of Contractors receives written proof that the Respondent has paid or tendered payment to the Complainant in the amount of $2,170.00; It is further recommended that if the Respondent pays or tenders payment to the Complainant as required by the Order entered in this matter, then no suspension shall take place, and the Citation and Complaint upon which it is based shall be closed. Done this day, June 24, 1999.

______________________________________ Allen Reed Administrative Law Judge

Original transmitted by mail this ____ day of June, 1999, to:

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

By ___________________________

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Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826