ALJDEC

99F-2621-ROC-com · Registrar of Contractors · 2000-05-16

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 9, 2000. APPEARANCES: Steven Lindquist, Complainant; and Robert Ryan, Respondent’s representative. ADMINISTRATIVE LAW JUDGE: Dorinda M. Lang. _____________________________________________________________________ Because Respondent has failed to make payments when due to Complainant pursuant to the agreement between the parties, I recommend that Respondent’s license be sanctioned. Respondent’s license has been canceled; however, I recommend that the license be suspended until the Registrar of Contractors receives proof that the unpaid amount of $4,174 has been paid to Complainant and that Respondent’s bond be increased to ten times the otherwise required amount. FINDINGS OF FACT 1. On August 19, 1999, the representatives of the above parties entered into a binding agreement to settle the complaint which was then at hearing. The agreement stated that Respondent, a general contractor, would make payments to Complainant, a subcontractor, to pay it for work done on a contract. In consideration of the settlement agreement, Complainant withdrew his request for a hearing and the matter was closed. 2. On February 15, 2000, Complainant requested that the matter be re- opened due to non-payment of the settlement amounts by Respondent. 3. The same representatives of Complainant and Respondent appeared at hearing. Respondent admitted that the payments had not been made but asserted that it had agreed to make the payments only if it could afford to. Reference to the file in the case clarified that the agreement had no such condition. Respondent’s representative also stated that Respondent was out of business and had closed its doors, that it no longer carried a license with the Registrar of Contractors. The Registrar of Contractors’ computer indicates that Robert Ryan Sr. is on another license, No. 145660, which is on inactive status since January 25, 2000, and that the license in question was canceled on May 22, 1999. 4. Complainant testified that $4,174 is still due on the contract. CONCLUSIONS OF LAW 1. This matter is within the jurisdiction of the Registrar of Contractors pursuant to A.R.S. §§32-1104(A)(4), 32-1154(B) and 32-1156. 2. Pursuant to A.R.S. §32-1154(C), the expiration, cancellation, suspension or revocation of a license does not deprive the Registrar of Contractors of jurisdiction of disciplinary proceedings against the license. 3. Failure to pay money when due to a subcontractor in excess of $750 is a violation of A.R.S. §32-1154(A)(11) and a cause for disciplinary action. 4. Based on the settlement agreement between the parties, Respondent has effectively agreed that he owes the money which Complainant claims is due. Therefore, it has been established that Respondent is in violation of the above statute and is subject to disciplinary action. RECOMMENDED DECISION In view of the foregoing, it is recommended, commencing on the effective date of the Registrar’s Order, (thirty-five [35] days after the date of mailing by the Registrar of Contractors) that Respondent’s Class B license be suspended until the Registrar receives proof that Respondent has paid Complainant $4,174. The Registrar of Contractors is empowered by statute (A.R.S. § 32-1152) to increase the license bond of a contractor after a disciplinary hearing in an amount up to ten times the sum otherwise required based on annual gross volume. Under all the facts and circumstances in this case, some portion of the aforesaid power should be exercised, to be applicable for a fixed time period. I recommend that Respondent’s bond be increased to the full 10 times the otherwise required amount. Done this day, May 16, 2000. OFFICE OF ADMINISTRATIVE HEARINGS

______________________________________ Dorinda M. Lang Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2000, to:

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

By ___________________________

-----------------------

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