ALJDEC

99F-C989185-BFS · Department of Building and Fire Safety · 1999-04-30

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

|GEORGE AND BETTY A. HANNON, |§| | | |§|CASE NO.: 98-9/185 | |Complainants, |§| | | |§|DOCKET NO.: 99F-C989185-BFS | |-v- |§| | | |§| | |CAVCO INDUSTRIES, L.L.C., d.b.a. |§| | |CAVCO INDUSTRIES DURANGO DIVISION, |§| | |License No. 7098, Class |§| | |M-9E, |§|RECOMMENDED | | |§|DECISION AND ORDER | |and |§| | | |§| | |HANNON MANAGEMENT, INC., |§| | |License No. 2337, Class D-8, |§| | | |§| | |Respondent. |§| | | |§| | | |§| | | |§| | | |§| |

HEARING: April 22, 1999, at 1:30 p.m. APPEARANCES: The Complainants appeared through George Hannon. Respondent CAVCO INDUSTRIES appeared through its authorized employee, Paul DuRoo. Respondent HANNON MANAGEMENT, INC., appeared through its authorized employee, John Peter. ADMINISTRATIVE LAW JUDGE: M. Douglas

This matter came on for hearing on April 22, 1999. The Complainants appeared through George Hannon, Respondent CAVCO INDUSTRIES appeared through its authorized employee, Paul DuRoo. HANNON MANAGEMENT, INC., appeared through its authorized employee, John Peter. Evidence and testimony were presented and, based upon the entire record, the following Findings of Fact, Conclusions of Law and Recommended Order are made:

. . .

FINDINGS OF FACT

1. Respondent CAVCO INDUSTRIES, L.L.C., is the holder of a Class M-9E License issued by the Department of Building and Fire Safety.

2. Respondent HANNON MANAGEMENT, INC., is the holder of a Class D-8 License issued by the Department of Building and Fire Safety.

3. The Complainants purchased a manufactured residence made by CAVCO INDUSTRIES, L.L.C., and sold by HANNON MANAGEMENT, INC., the home was installed on October 15, 1997.

4. Shortly after moving into the manufactured residence the Complainants began noticing several areas of unsatisfactory workmanship.

5. The Complainants were dissatisfied with the Respondents’ workmanship and failure to correct their work despite repeated requests that they do so. The Complainants then filed a formal complaint, against both Respondents, with the Arizona Department of Building and Fire Safety, Office of Manufactured Housing.

6. Pursuant to the filing of the formal complaint, an assigned agency inspector conducted an on-site inspection and verified portions of the formal complaint.

7. Credible evidence, presented at hearing, established that HANNON MANAGEMENT, INC., properly complied with the terms and conditions of the verified complaint. HANNON MANAGEMENT is to be commended for its actions.

8. Credible evidence, presented at hearing, established that Respondent CAVCO INDUSTRIES, L.L.C., has failed to comply with the terms and conditions of the verified complaint.

9. The following items of the Verified Complaint were shown to fail to comply with applicable minimum industry standards and require proper corrective action by Respondent CAVCO INDUSTRIES, L.L.C.:

j. Item 1(a), the shower doors sway and are uneven.

k. Item 1(b), paint on bottom track, the doors still do not operate properly.

l. Item 5, the replacement faucet still pops when it is used.

m. Item 8(a) and 10(a), the tape and texture work around the recessed lights still too noticeable. The paint used to touch- up on the ceiling does not match the surrounding paint.

n. Item 15, there are still paint splashes on the dining room ceiling.

o. Item 18, there is still a gap at the threshold.

p. Item 21, the water damage has not been fully corrected.

q. Item 25(b), (34), the windows still slide too hard and the locks do not operate properly.

r. Item 29, there are still unacceptable gaps around the cabinet, left of the kitchen sink.

19. The remaining items of the verified complaint were shown to have been corrected to within minimum applicable tolerances.

CONCLUSIONS OF LAW

1. A.R.S. §41-2186(7) subjects a licensee’s License to sanction for a departure from or disregard of any code or any rule adopted by the board.

2. A.R.S. §41-2186(12) subjects a licensee’s License to sanction for a failure to respond relative to a verified complaint after notice of such complaint.

3. A.R.S. §41-2186(20) subjects a licensee’s License to sanction if the licensee fails to manufacture or install, in a workmanlike manner, all subassemblies, units and accessory structures which are suitable for their intended purpose.

4. The credible evidence of record established violations, by the Respondent CAVCO INDUSTRIES, L.L.C., of the provisions of A.R.S. §41- 2186(7),(12) and (20).

RECOMMENDED ORDER

1. In view of the foregoing, it is recommended that the Class M-9E (No.7098) license of Respondent CAVCO INDUSTRIES, L.L.C. be suspended for a period of 30 days commencing on June 30, 1999. It is further recommended that if the Respondent properly accomplishes the proper correction of the items set forth above in Finding of Fact Nos. 9(a) through 9(i), inclusive, then the above provided License suspension shall not take place and that Case No. 98-9/185 shall be closed.

2. In view of the foregoing, it is recommended that the Complaint against HANNON MANAGEMENT, INC., be closed.

Dated this 30th day of April, 1999.

OFFICE OF ADMINISTRATIVE HEARINGS

_________________________________ M. DOUGLAS Administrative Law Judge

Original mailed this day of May, 1999 to:

N. Eric Borg, Director Department of Building and Fire Safety ATTN: Michelle Castaneda East Virginia, Suite 100 Phoenix, AZ 85004

Transmitted by:

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