Dyas; ACH: Noy OF i) HEA ap ‘ATI VE STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION CONSTRUCTION INDUSTRY LICENSING BOARD DIVISION J DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Petitioner, 0 4 ~0 32 &P C Case No. 2001-06727 VS. RICHARD OWEN PHILLIPS, Respondent. / ADMINISTRATIVE COMPLAINT Petitioner, DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, ("Petitioner"), files this Administrative Complaint before the Construction Industry Licensing Board, against RICHARD OWEN PHILLIPS, ("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 General Contractor, in the State of Florida, having been issued license number CG C050851. 3. Respondent's last known address is 1500 NW 62™ Street, Suite 421, Ft. Lauderdale, Florida 33309. 4. At all times material hereto, Respondent was the licensed qualifier for Atlantic Coast Remodelers, Inc. (hereinafter referred to as "Contractor"). 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. COUNT I 6. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five as though fully set forth in this Count I. 7. On or about April 7, 2001, the Contractor entered into a contract with Robert C. Butler, Jr. (hereinafter referred to as “Customer”) to perform remodeling work on his house located at 2920 NW 5” Court, Ft. Lauderdale, Florida 33311. 8. The contract price was Twenty-Two Thousand dollars ($22,000.00). 9. The Customer obtained financing through Key Bank USA. 10. On or about April 25, 2001, the Contractor and the Customer signed a staged funding agreement scheduling the disbursement of four (4) checks upon completion of each phase of construction. 1t. Onor about May 3, 2001, the Customer signed a “Power of Attorney” authorizing the Contractor to hire sub-contractors, pay bills, handle funds, and install work at the above- mentioned location. 12. On or about May 4, 2001 through May 10, 2001, the Contractor received four (4) checks totaling the full contract price. 13. | The Contractor performed some of the remodeling work, but failed to complete the project, thus abandoning the Customer’s construction project. 14. Based upon the foregoing, the Respondent violated Section 489.129(1)(j), Florida Statutes (2000), by abandoning a construction project in which the contractor is engaged or under contract as a contract. 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 work without just cause for 90 consecutive days. COUNT 15. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and seven through thirteen as though fully set forth in this Count II. 16. At the time of abandonment, the Contractor had already received full payment of the contract price. 17. The Contractor failed to refund any money to the Customer. oN re LY Panel 18. Based upon the foregoing, the Respondent violated Section 489.129 Florida Statutes (2000), 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 funds under the terms of the contract or refunds the excess funds within 30 days after the date the job is abandoned. COUNT Ht 19. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five, seven through thirteen and sixteen through seventeen as though fully set forth in this Count Lf. 20, Section 489.129(2)(a), Florida Statutes (2000), provides that a contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances. 21. The Contractor did not obtain any permits for the remodeling work being performed at the Customer’s house pursuant to the contract. 22. Based upon the foregoing, the Respondent violated Section 489.129(1)(), Florida Statutes (2000), by failing in any material respect to comply with provisions of this part or violating a rule or lawful order of the board. COUNT IV 23. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five, seven through thirteen, sixteen through seventeen and twenty through twenty-one as though fully set forth in this Count IV. 24. Section 489.119(2), Florida Statutes (2000) 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, tl if any. 25, The Contractor did not possess a certificate of authority as a qualified business organization for Atlantic Coast Remodelers, Inc. 26. Failing to obtain a certificate of authority as a qualified business organization constitutes a violation of Section 489.119(2), Florida Statutes. 27. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes (2000), by failing in any material respect to comply with provisions of this part or violating a rule or lawful order of the board. COUNT V 28. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five, seven through thirteen, sixteen through seventeen, twenty through twenty-one and twenty-four through twenty-six as though fully set forth in this Count IV. 29. 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 Construction Industries Recovery Fund, except where the value of all labor and materials does not exceed $2,500. 30. The contract did not include a notice explaining the consumer’s rights under the Construction Industries Recovery Fund. 31. By failing to notify the Customer of the Construction Industries Recovery Fund, the Contractor violated Section 489.1425, Florida Statutes. 32. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes (2000), by failing in any material respect to comply to with the provisions of this part or violating a rule or lawful order of the board. 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 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 Qld day of A a4 G 2002. COUNSEL FOR DEPARTMENT: Diane Snell Perera F | L sonal Regulation Assistant General Counsel Department of Business and vie . Department of Business and AGENCY Cl Professional Regulation 401 NW 2 Avenue #N607 Miami, FL 33128 . (305) 377-7115 cuRK Soy adn Z- Wevhenon DAT red 3 © > - EBS sb 3/25/02 Case #2001-06727 PCP: May 28, 2002 Burke/Lambert

Docket for Case No: 03-000328PL