ALJDEC

99F-T0818-ROC · Registrar of Contractors · 2000-03-28

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 14, 2000, at 8:30 a.m. APPEARANCES: The Complainants appeared through Lon Berg. The Respondent appeared through its attorney, James Woodrow. ADMINISTRATIVE LAW JUDGE: M. Douglas

This matter came on for hearing on March 14, 2000. The Complainants appeared through Lon Berg and the Respondent appeared through its attorney, James Woodrow. 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 is the holder of a Class B- License issued by the Registrar of Contractors. The Respondent’s Class B- License was canceled on January 11, 1999. 2. This is a residential matter where the Respondent constructed a new residence for the Complainants. . . . 3. The Complainants were dissatisfied with the Respondent’s workmanship and failure to correct its work despite repeated requests that it do so. The Complainants then filed a formal complaint, against the Respondent, with the Registrar of Contractors. 4. Pursuant to the filing of the formal complaint, an assigned Agency Inspector conducted an on-site inspection and issued a written corrective work order directing the Respondent to perform designated corrective work on the Complainant’s residence. 5. After the corrective work order was issued, the parties entered into an itemized mediation settlement agreement. 6. Credible evidence, presented at hearing, established that the Respondent did substantially comply with the terms and conditions of the written settlement agreement. 7. The Complainants alleged at hearing that the Respondent wrongfully failed to pay subcontractors and knowingly submitted false lien releases from two subcontractors. 8. Credible evidence established that subcontractors repeatedly contacted the Complainants for payment during and after the construction process. 9. Credible evidence, presented at hearing, established that the Respondent did submit two lien releases that were signed by someone other that the subcontractors for which they were submitted. Credible evidence, presented at hearing, established that the Respondent either knew, or should have known, that the lien releases were not signed by the two subcontractors and that the Respondent submitted the lien releases for payment as though they had been properly signed and submitted by the two subcontractors. 10. The Respondent’s actions, in failing to pay subcontractors in a timely fashion and in submitting two lien releases for payment when the Respondent either knew, or should have known, that signatures on the documents were false, are found to constitute a wrongful act. 11. The Complainants allege that the Respondent agreed to construct a new barbecue and install screens for the windows of the residence. Credible evidence established that these items are not set forth in the parties’ written agreement nor are they set forth in plans and specifications. There was no credible evidence that the Complainants paid any additional sums or gave any consideration for the construction of a barbecue or the installation of window screens. 12. Notice is taken of the Respondent’s prior License record with the Registrar of Contractors.

CONCLUSIONS OF LAW

1. The credible evidence of record established violations by the Respondent of the provisions of A.R.S. (32-1154 (A) (7) (Wrongful Act).

RECOMMENDED ORDER

In view of the foregoing, it is recommended that the Respondent’s Class B-License be revoked. Done this day, March 30, 2000.

_________________________________ M. DOUGLAS Administrative Law Judge

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

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

By _______________________________ -----------------------

Office of Administrative Hearings 100 N. Stone Ave., Suite 704 Tucson, Arizona 85701 (520) 628-5488