STATE OF FLORIDA. DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION CONSTRUCTION INDUSTRY LICENSING BOARD DIVISION I DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Petitioner, Arlo SOUT PL Cage No. 2004-039232 VS. JOHN B. MORTON II, Respondent. / ADMINISTRATIVE COMPLAINT Petitioner, DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, ("Petitioner"), files this Administrative Complaint before the Construction Industry Licensing Board, against JOHN B. MORTON Hf, ("Respondent"), and says: 1, Petitioner is the state agency charged with regulating the practice of contracting pursuant to Section 20.165, Florida Statutes, and Chapters 455 and 489, Florida Statutes. 2. Respondent is, and has been at all times material hereto, a Certified Roofing Contractor, in the State of Florida, having been issued license number CC C011043. 3. Respondent's address of record is 700 NE 42™ Street, Oaldand Park, Florida 33334. 4. At all times material hereto, Respondent was licensed as the qualifying agent for Morton Roofing, Inc. (hereinafter referred to as "Contractor"). At all times material hereto, the Contractor did not have a certificate of authority as a qualified business organization (QB license”). On or about January 10, 2006, the Contractor filed an application with the Petitioner for a QB license. 5. Section 489.1195(1)(a), Florida Statutes, provides that all primary qualifying agents for a business organization are jointly and equally responsible for supervision of all operations of the business organization; for all field work at all sites; and for financial matters, both for the organization in general and for each specific job. 6. The Contractor failed to obtain a QB license, 7. On or about January 21, 2004, the Contractor entered into a written contract with Bastwinds At Crosswinds Condominium Association (“ECCA”) to re-roof one or more condominium buildings located at or in the vicinity of 1850 Homewood Boulevard, Delray Beach, Florida. 8. ‘The contract price was One Hundred Thirty Five Thousand dollars ($135,000.00). 9. The contract did not include a notice explaining the consumer’s rights under the Construction Industries Recovery Fund. 10, The contract provided that a fifteen percent (15%) payment of Twenty Thousand Two Hundred Fifty dollars ($20,250.00) was due upon acceptance of the contract. On or about January 22, 2004, ECCA made that payment, 11. Thereafter the Contractor failed to commence the project and failed without just cause to perform work for more than 90 consecutive days, thereby abandoning the project, and the Contractor failed to refund any monies to ECCA. COUNTI 12. The Petitioner realleges and incorporates the allegations set forth in paragraphs one through eleven as though fally set forth in this Count TL. 13. Section 489.119(2), Florida Statutes, provides: if the applicant proposes to engage in contracting as a business organization, including any partnership, corporation, business trust, or other legal entity, or in any name other than the applicant’s legal name or a fictitious name where the applicant is doing business as a sole proprietorship, the business organization must apply for a certificate of authority through a qualifying agent and under the fictitious name, if any. 14. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes (2003), by failing in any material respect to comply with the provisions of this part or violating a. rule or lawful order of the board. COUNT I. 15. Petitioner realleges and incorporates the allegations set forth in paragraphs one through eleven as though fully set forth in this Count IL 16. Section 489.1425, Florida Statutes, provides: any agreement or contract for repair, restoration, improvement, or construction to residential real property must contain a written statement explaining the consumer's rights under the Florida Homeowners’ Construction Recovery Fund, except where the value of all labor and materials does not exceed $2,500. 17. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes (2003), by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT DY 18. Petitioner realleges and incorporates the allegations set forth in paragraphs one through eleven as though fully set forth in this Count IL 19, Based upon the foregoing, the Respondent violated Section 489.129(1)(), Florida Statutes (2003), by abandoning a construction project in which the contractor is engaged or under contract as a contractor. A project may be presumed abandoned after 90 days if the contractor terminates the project without just cause or without proper notification to the owner, including the reason for termination, or fails to perform worlc without just cause for 90 consecutive days. COUNT IV 20. Petitioner realleges and incorporates the allegations set forth in patagraphs one through eleven as though fully set forth in this Count IV. 21. Based upon the foregoing, the Respondent violated Section 489.129(1)(g)2, Florida Statutes (2003), by committing mismanagement or misconduct in the practice of contracting that causes financial harm to a customer. Financial mismanagement or misconduct occurs when the contractor has abandoned a customer’s job and the percentage of completion is less than the percentage of the total contract price paid to the contractor as of the time of abandonment, unless the contractor is entitled to retain such fimds under the terms of the contract or refunds the excess funds within 30 days after the date the job is abandoned. WHEREFORE, Petitioner respectfully requests the Construction Industry Licensing, Board enter an Order imposing one or more of the following penalties: place on probation, reprimand the licensee, revoke, suspend, deny the issuance or renewal of the certificate or registration, require financial restitution to a consumer, impose an administrative fine not to 4 exceed $5,000 per violation, require continuing education, assess costs associated with investigation and prosecution, impose any or all penalties delineated within Section 455.227(2), Florida Statutes, and/or any other relief that the Board is authorized to impose pursuant to Chapters 489, 455, Florida Statutes, and/or the rules promulgated thereunder. Signed this Ue 1 day of __( Dpas ") , 2006. THEODORE R. GAY . ASSISTANT GENERAL COUNSEL D COUNSEL FOR DEPARTMENT: Department of Bus ‘usinags and Professional R Theodore R. Gay AGENCY Clerk egulation Assistant General Counsel Department of Business and Professional Regulation CLERK 8685 NW 53” Terrace, #100 ; Se A. (Weahen nn Miami, FL 33166 ail ~2D0ls (305) 470-6783 Ext. 2225 TRG/sb Case #2004-039232 PC Found: April 25, 2008 Dhision Ul: Flaherty & Pletanza

Docket for Case No: 06-002247PL