ALJDEC

99F-2162-ROC · Registrar of Contractors · 1999-07-07

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 30, 1999 APPEARANCES: George Reimann on behalf of the Complainant; Respondent did not appear at the hearing ADMINISTRATIVE LAW JUDGE:Lewis D. Kowal _____________________________________________________________________ FINDINGS OF FACT 1. On March 6, 1998, Kezia Contracting Corporation (“Respondent”) submitted to Symons Corporation (“Complainant”) an application for credit (“Application”) so that Respondent could establish an account with Complainant to obtain equipment and materials from Complainant. 2. The Application was dated March 6, 1998, and signed by Mike Simpson and Nolan Simpson, officers of the Respondent. By submission of the Application, Respondent agreed to the Application’s terms and conditions, including that all contracts that Respondent has with general contractors are considered separate contracts and not part of the contract Respondent has with Complainant. 3. Complainant is in the business of renting and selling concrete framing and support equipment.

4. The Application was approved by Complainant, providing Respondent with credit not to exceed $3,000.00 per month. 5. On the following dates, Noel Simpson, on behalf of Respondent, rented shoring equipment from Complainant on credit: March 12, 17, 19, and 27, 1998, and June 3, 4, 5, 9, 19, and 29, 1998. The total list value of the equipment Respondent rented had a value of $55,137.90. According to the Agreement, the rental rate charged per month was 5% of the list value of the equipment. 6. Complainant submitted monthly billing statements to Respondent for the charges towards the credit account that accrued each month for Respondent’s rental of the shoring equipment. The evidence established that Respondent made several payments to Complainant totaling $2,705.21. Based on Respondent’s payment history, Complainant expanded Respondent’s credit account limit to exceed $3,000.00 per month. 7. As of the date of the hearing, the total amount that Complainant has requested from Respondent that remains due and owing is the sum of $14,165.59, consisting of $524.47 in finance charges for nonpayment of outstanding balance and $1,270.57 for shortage amount for equipment that Respondent failed to return to Complainant. 8. The Agreement provides that Respondent will be billed monthly and that for any outstanding balance not paid within 30 days of the statement there will be a finance charge of 1 ½% per month. The Agreement also provides for charging for shortage amounts for any equipment rented but not returned to Complainant. 9. The evidence presented established that Respondent did not return all of the shoring equipment it rented from Complainant and that such equipment had a value of $1,270.50. 10. The above-stated evidence was presented through the testimony of George Reimann, an Account Manager for the Complainant. Mr. Reiman’s testimony, as set forth above, is determined to be credible. . . .

11. Respondent failed to present any evidence to refute or rebut the evidence presented by Complainant. 12. The evidence of record establishes, as of the date of the hearing, Respondent owes Complainant the sum of $14,165.59. CONCLUSIONS OF LAW The evidence of record establishes that Respondent has violated the provisions of A.R.S. §§32-1154(A)(7) and (11). RECOMMENDED ORDER Based on the above, on the effective date of the Order entered in this matter, Respondent’s Class A license shall be revoked. In the event that on or before the effective date of the Order entered in this matter, the Registrar of Contractors receives written proof that Respondent has paid or tendered payment of $14,165.59 to the Complainant, then the above- mentioned revocation shall not take place but, instead, Respondent’s license shall be placed on disciplinary probation for 60 days. Done this day, July 12, 1999

______________________________________ Lewis D. Kowal Administrative Law Judge

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

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

ATTN: Joyce Armijo

By ___________________________

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