ALJDEC

99F-R989019-BFS · Department of Building and Fire Safety · 1999-06-16

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

|KERRY LYNN KLASSEN, |(|Case No.: REC 98-9/019 | | |(| | |Complainant, |(|Docket No.: 99F-R989019-BFS | | |(| | |vs. |(| | | |(|Recommended | |GOLDEN EAST HOMES SALES, INC., |(|Decision and Order | |License No. 6684, Class D-12 |(| | | |(| | |Respondent. |(| | | |(| |

HEARING: June 8th, 1999; 9:00 a.m. Appearances: The Complainant, Mr. Kerry Lynn Klassen, appeared telephonically in his own behalf. The Respondent failed to appear or be represented. Administrative Law Judge: Grant Winston

This matter was brought on for administrative hearing on Tuesday, June 8th, 1999, at 9:00 a.m. Testimony of the Complainant was taken, and documentary evidence admitted to record, and based on the entire record, the following Findings of Fact, Conclusions of Law and Recommended Order are made.

FINDINGS OF FACT

1. The Respondent in this case, Golden East Home Sales, Inc., is, and during all times material hereto was, a licensed dealer doing business in the State of Arizona, holding Class D-12 license number 6684.

2. The Complainant herein, Mr. Kerry Lynn Klassen, and his wife, contracted with the Respondent in writing on June 3rd, 1998, for the Respondent to sell their used mobile home.

3. The home was sold within the contractual arrangement, and pursuant thereto the Complainants were entitled to have received from the Respondent proceeds in the amount of $3,669.69.

4. Respondent issued a check to Complainant on January 14th, 1999. The numerical amount of the check was correct; that is, $3,669.69. However, the worded amount written below was different; that is, “Three thousand sixty-nine & 69/100.” Therefore, the payor bank refused to honor the check.

5. Respondent issued a second check to the Complainant on January 20th, 1999. That check correctly stated the amount numerically and in words. However, the payor bank refused to honor that check for the reason the account on which it was drawn, Respondent’s account, had a fund balance insufficient to pay the check.

6. As a result of these facts, the Complainant never received the proceeds from the sale of his mobile home to which he was entitled to receive from the Respondent.

7. Complainant made repeated efforts to contact Respondent, but was unsuccessful in ever receiving the money due. It appears Respondent has walked away from the business.

8. Complainant filed the instant claim with the Department of Building and Fire Safety on or about April 10th, 1999. The Department issued a Verified Complainant and Sign-Off Form, indicating that the facts as stated by the Complainant were verified and dealer was to correct.

9. Notice of Hearing issued from the Department on April 29th, 1999.

Conclusions of Law

1. This hearing was held under authority of and pursuant to A.R.S. §41- 2190.C., and A.R.S. §41-1092.

2. The preponderance of evidence in the hearing established facts supporting the conclusion that the Respondent’s actions in failing to perform the sales agreement damaged the Complainant in the amount of $3,669.69.

3. Such actions of Respondent constitute a violation of A.R.S. §41- 2190.B., as charged in the instant Notice of Hearing.

4. The Department has verified the Complainant’s claim and therefore the Respondent’s license should be suspended pursuant to A.R.S. §41-2190.

5. If in the future Respondent’s qualifying party or any other person listed on Respondent’s license applies to the Department of Building and Fire Safety for another license, this suspension may be considered as evidence of lack of good character and reputation and furnish grounds for denial of licensure. A.R.S. §41-2175.E.

Recommended Order

In view of the foregoing it is hereby recommended that $3,669.69 be paid to Complainant from the Consumer Recovery Fund pursuant to A.R.S. §41-2190.A. It is further recommended, pursuant to A.R.S. §41-2190.D., that Respondent’s License Number 6684, Class D-12, be suspended until it has repaid $3,669.69 to the Consumer’s Recovery Fund, plus interest at the rate of 10% per annum.

Dated this 16th day of June, 1999.

OFFICE OF ADMINISTRATIVE HEARINGS

_________________________________ Grant Winston Administrative Law Judge

Original mailed this day of June, 1999, to:

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

Transmitted by:

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