The Issue The issue for determination is whether Respondent, Roland F. Patterson, engaged in the unlicensed practice of contracting in the State of Florida without being duly certified or registered in violation of Chapter 489, Florida Statutes; and secondarily, if Respondent committed that violation, what penalty should be imposed?
Findings Of Fact At all times material to these proceedings, Respondent was not duly registered or certified to engage in the practice of construction contracting in the State of Florida. He was, however, doing business as George E. Patterson & Associates. Respondent proposed to build an addition to Jennie Headen’s residence, located at 1424 Bellshore Circle, Jacksonville, Florida, for a contract price of $22,000. Respondent signed the written proposal, telling Headen that she need not sign as her name was already on the document. Headen issued checks to Respondent; one in the amount of $3,000 and one in the amount of $9,000. Respondent accepted the checks, made out to him, as payments for work in accordance with the draw schedule mentioned in the proposal. Respondent cashed both checks. Respondent proceeded to tear the back porch of Headen’s house down. He ordered trusses for the cathedral roof and some lumber for further construction, all of which was delivered. Respondent started to frame in the addition, but a City of Jacksonville inspector issued a “Stop Work” order due to the flimsy construction and violation by Respondent of building code requirements. Respondent was also issued a Notice and Order to Cease and Desist from Petitioner, the Department of Business and Professional Regulation, for the practice of unlicensed contracting for the work he performed at 1424 Bellshore Circle, Jacksonville, Florida. Total investigative costs in this matter incurred by Petitioner were $534.59, excluding costs associated with any attorney’s time.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That a Final Order be entered: Finding Respondent guilty of having violated Section 489.127(1)(f), Florida Statutes, and imposing as a penalty an administrative fine in the amount of $5,000.00. Requiring Respondent to pay Petitioner’s costs of investigation and prosecution, excluding costs associated with an attorney’s time, in the amount of $534.59. DONE AND ENTERED this 28th day of August, 2007, in Tallahassee, Leon County, Florida. S DON W. DAVIS Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 28th day of August, 2007. COPIES FURNISHED: Roland F. Patterson 1610 West 31 Street Jacksonville, Florida 32209 Joshua B. Moye, Esquire Assistant General Counsel Craig Mangum, Qualified Representative Department of Business and Professional Regulation 1940 North Monroe Street, Suite 42 Tallahassee, Florida 32399-2202 Nancy S. Terrel, Hearing Officer Office of the General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-0792 Ned Luczynski, General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-0792
The Issue The issues in the case are whether the allegations of the Administrative Complaint are correct, and, if so, what penalty should be imposed.
Findings Of Fact The Petitioner is the state agency responsible for regulating licensed contractors in the State of Florida. At all times material to this case, the Respondent was a Florida licensed Certified General Contractor, holding license number CG-C038598. The Respondent owned and operated a construction company identified as "A Giant Commercial Construction Company." At all times material to this case, the Respondent was engaged in a business relationship, the details of which are unclear, with an individual known as Darryl L. Simpson (Simpson). Simpson operated a company called "THSC Holding Company." Simpson's THSC Holding Company did business as "The Home Service Corporation." Simpson, THSC Holding Company, and The Home Service Corporation were not licensed Florida contractors. At all times material to this case, the Respondent was aware that neither Simpson nor his business entities were licensed Florida contractors. The Respondent was apparently not directly involved in the operation, and was not an officer or director of THSC Holding Company or The Home Service Corporation. In January of 1999, Romelia Lopez (Lopez) entered into a contract with THSC Holding Company for demolition of an existing structure and construction of a private residence at 2923 Cornelia Street, Tampa, Florida 33614. The price for the work was a total of $65,000, paid-in-full to THSC Holding Company. On February 23, 1999, a demolition permit numbered 183679.001 was obtained from the Hillsborough County Building Department in the name of the Respondent's company and under the Respondent's general contractor license. The Respondent was aware of the Lopez project and performed the demolition work at Simpson's request. He received compensation for the demolition work. On September 3, 1999, a building permit numbered 188012.003 was obtained from the Hillsborough County Building Department in the name of the Respondent's company and under the Respondent's general contractor license for construction of the Lopez residence. Other than the demolition, the only construction work performed at the Lopez site was an improperly dug foundation that could not pass inspection. The Respondent asserts that he did not dig the foundation at the Lopez site. By September 24, 1999, all work at the Lopez site had ceased. After learning that the job had been abandoned, the Respondent attempted to contract with a subcontractor to complete the construction, but was directed by the Lopez family not to proceed with any additional work. Romelia Lopez has received reimbursement of the $65,000 she paid, apparently from Simpson. The Respondent did not participate in reimbursing Lopez. On May 17, 2000, the Hillsborough County Building Board of Adjustment, Appeals, and Examiners determined that the Respondent had violated Section 108.6.1(11), Ordinance 98-2, Hillsborough County Code, for conspiring with an unlicensed contractor and abandoning a construction project. The Board suspended the Respondent's permitting privileges for five years. The Respondent appealed the Board's action to the Tampa City Council where the appeal was denied.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Professional Regulation, Construction Industry Licensing Board, enter a Final Order finding the Respondent guilty of violating Section 489.129(1)(d), (e), and (h), Florida Statutes, imposing a fine of $3,000 and assessing costs of $654.49. DONE AND ENTERED this 19th day of May, 2003, in Tallahassee, Leon County, Florida. WILLIAM F. QUATTLEBAUM Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 19th day of May, 2003. COPIES FURNISHED: Patrick L. Butler, Esquire Department of Business and Professional Regulation 1940 North Monroe Street, Suite 60 Tallahassee, Florida 32399-2202 Ronald F. Morgan 6230 Interbay Boulevard Tampa, Florida 33611 Robert Crabill, Executive Director Construction Industry Licensing Board Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Hardy L. Roberts, III, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-2202
Findings Of Fact During the applicable time period, the Respondent was a certified building contractor in the state of Florida and held license number CB C026049. On or about January 6, 1986, the Respondent was hired by West Coast Remodeling & Construction Company. The Respondent was hired as an employee to supervise a building project based on a contract between West Coast and Clarence Harrod for the building of a quadriplex in Rotunda West, Florida. On January 17, 1986, the Respondent applied for a building permit for the Harrod project. The Respondent represented on the permit that he was the builder on the project instead of West Coast, who had the written contract with Harrod. Neither of the principals in West Coast, Gunnar Jacobsen or Gerald Hanley, held a building contractor's license and a licensed contractor was necessary to obtain the permit for the project. After the application for the permit was completed, but before the building permit was issued, the Respondent received a document from West Coast evidencing that the Harrod contract was assigned to him as an individual. At the time the Charlotte County Building Permit was actually issued, the Respondent was the assignee of the Harrod contract. Although the assignment was in effect on January 22, 1986, West Coast continued to receive the funds from Mr. Clarence Harrod, who was not notified of the assignment of the contract. The Respondent either allowed or acquiesced in the continued management of the project and the building funds by West Coast until April 15, 1986. Sometime between January 17, 1986, and January 31, 1986, the Respondent became a shareholder in West Coast. By April of 1986, the Respondent was a corporate officer and had a one-third interest in the corporation. The corporation had three shareholders: the Respondent, Gunnar Jacobsen, and Gerald Hanley. Although all three men were corporate officers, the Respondent was to supervise new construction projects, Jacobsen was to handle administrative affairs and solicit new work, and Hanley was to supervise the remodeling jobs obtained by Jacobsen. In April of 1986, the Respondent determined that there were insufficient funds in the corporate accounts to complete the Harrod project if overhead costs were not reduced immediately. This insight was acquired by the Respondent around the same time the following events occurred: A. Mr. Harrod complained in early April that the job was taking too long. The project was still in the framing stage, and Mr. Harrod was asked for $15,000 of the $25,184.44 draw which was set aside in the contract for the drywall phase of the project. B. Smaller projects that West Coast had in progress, such as three concrete jobs, were found to be unprofitable by the principals in the company. C. Jacobsen was complaining to the Respondent and Hanley, the other two corporate officers, that framing costs were too high on the Harrod project. D. The Respondent and Hanley had decided, between themselves, that Jacobsen was not earning his salary with the corporation because he was not acquiring the new remodeling jobs for the company that he was supposed to under their business arrangements. On April 15, 1986, Hanley and the Respondent locked Jacobsen out of the corporate offices and removed all the money in the corporate accounts, including the money involved in the Harrod project. On April 22, 1986, an agreement was signed by Jacobsen, Hanley, and Respondent which dissolved their business relationships. Pursuant to the agreement, the Respondent resigned his position as an officer in West Coast and assigned his stock in the corporation to Jacobsen. The Respondent and Hanley were also required to make an accounting of the corporate funds removed from the corporate accounts on April 15, 1986. The agreement does not reveal whether the Harrod project was to remain with West Coast or the Respondent. However, the project did remain with West Coast, and the Respondent contacted the Charlotte County Building Department to remove his name from the building permit effective 8:00 a.m., April 23, 1986. When the business relationship between the corporate principals was dissolving in April, the Respondent had contact with Mr. Clarence Harrod. He did not tell the owner about the assignment of the contract to him on January 22, 1986, nor did he advise the owner of the cost overruns which he now asserts were a reason for his resignation from the corporation. The documents attached to the April 22, 1986, agreement reveal that the Respondent was aware of the need for two releases of lien totalling $40,185 on the Harrod project at the time he left the corporation and allowed the corporation to take back and continue with the Harrod project. The Respondent appears to have commingled corporate funds with the Harrod project funds when the funds were under his and Hanley's joint control. During the seven days the Respondent and Hanley had joint control of the $11,611.88 seized from West Coast, the Respondent was paid $2,026.30 and Hanley was paid $2,633. On April 22, 1986, $5,281.97 was returned to West Coast with a list of acknowledged outstanding bills totalling $1,711.17. During the period of time between the assignment of the Harrod project to the Respondent on January 22, 1986, and the takeover of the project by West Coast on April 22, 1986, the Respondent accepted his legal responsibilities as a licensed contractor only on the occasions where it best served his most immediate personal interests.
The Issue The issues for determination are whether Respondent committed the acts alleged in the Administrative Complaint and, if so, what, if any, penalty should be imposed.
Findings Of Fact Petitioner is the governmental agency responsible for issuing licenses to practice as building contractors. Petitioner is also responsible for regulating such licensees on behalf of the state. At all times pertinent to this proceeding, Respondent has been licensed individually as a Certified General Contractor pursuant to license number CG C 0055328 issued by the Construction Industry Licensing Board (the "Board"). Respondent has never been licensed by the Board as the qualifying agent for Mr. Gary Butler ("Butler"), an unlicensed contractor. In 1993, Respondent entered into an agreement with Butler who has never been licensed by the Board. The terms of the agreement require Respondent to pull permits for construction projects entered into by Butler. Butler pays Respondent for each permit or weekly. Respondent supervises some, but not all, of the projects undertaken by Butler. In August, 1993, Mr. Lynn Kyler ("Kyler"), the owner of a residence constructed by Ms. Denise Pyke ("Pyke"), a Certified Residential Contractor, asked Pyke to find a contractor to build a new dock and boat house at Kyler's residence. The Kyler residence is a lake front home located at 10250 State Road 561 A, Clermont, Lake County, Florida. Kyler authorized Pyke to act as Kyler's agent for construction of the dock and boat house. Kyler resided in Indiana from August through late fall of 1993. Pyke obtained recommendations of various candidates including Butler. Butler represented himself as a licensed and insured builder of docks and boat houses. Butler provided Pyke with a business card representing that Butler is licensed and insured. Pyke obtained cost and design proposals from Butler and Norquist Construction Company and communicated the proposals to Kyler. Kyler chose Butler. Butler agreed to demolish the existing dock and construct a new dock and boat house (the "project"). Kyler paid Butler the full contract price of $6,897.60. Prior to the completion of the project, neither Respondent nor Butler disclosed to Pyke or Kyler that Butler was unlicensed. Nor did they disclose that Butler would use Respondent's license to pull the permit for the project. Respondent knew that Butler is not licensed as a contractor, in any capacity. On August 25, 1993, Respondent and Butler went to the Lake County Building Department. Respondent used his license to pull Permit Number T93- 04793 for the project. The permit was issued to Respondent, listed Respondent's license as the certified general contractor, and was maintained in the official records of the Lake County Building Department. Respondent listed himself on the permit as the contractor for the entire project without limitation and without reference to Butler. Respondent was not authorized by Pyke or Kyler to pull the permit or to participate in the project. At the time, neither Pyke nor Kyler were aware of Respondent's existence or his role in the project. Respondent did not participate and had no involvement in the project except pulling the permit. The project was commenced by Butler in August, 1993, and completed shortly thereafter. Respondent did not supervise or participate in the construction of the project. Butler began the project without first filing a Notice of Commencement. Butler constructed the project with only a 10 foot setback in violation of the 25 foot setback required in Lake County Code Ordinance 10.0401(3)(d). Butler also failed to obtain an electrical permit in violation of Standard Building Code, Section 103.1.1. (1991). The project, as built by Butler, has no value to Kyler. The project failed final inspection for violation of the 25 foot setback and failure to obtain an electrical permit. The roof tiles on the boat house had to be removed because they were falling off the roof. The project itself is coming apart. It will cost between $10,000 and $12,000 to bring the project into compliance with local code requirements and to make it usable. Respondent was aware of the 25 foot setback when he pulled the permit for the project. The project plans submitted for the permit reflect the 25 foot setback. Lake County allows contractors to withdraw permits that have already been pulled. Respondent never withdrew the permit for the project. Butler was unable to obtain a final inspection because he failed to file a Notice Of Commencement at the outset of the project. Pyke and Kyler filed the Notice Of Commencement in order to obtain the final inspection. As the contractor of record, it was Respondent's responsibility to ensure that a Notice of Commencement was filed and that the project passed final inspection. While obtaining the information necessary to file the Notice Of Commencement, Pyke and Kyler learned that Butler was unlicensed and uninsured and that Respondent had used his license to pull the permit. When confronted by Pyke, Respondent did not deny knowledge of the project and assured Pyke that the problems with the project would be corrected. Despite Respondent's assurances, the code violations have not been corrected. Nor have the defects in construction been corrected.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Board enter a Final Order finding Respondent guilty of violating: Sections 489.129(1)(c) and 455.227(1)(a); and Sections 489.129(1) (e), (f), (n), and (p). It is further recommended that the Board place Respondent on probation for three years, subject to reasonable conditions, impose an administrative fine of $5,000, and assess costs of $717.50 plus reasonable costs incurred by Petitioner subsequent to the date of this Recommended Order to investigate and prosecute this proceeding to its conclusion. RECOMMENDED this 28th day of March, 1996, in Tallahassee, Florida. DANIEL S. MANRY, Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 28th day of March 1996.
The Issue Did Respondent violate Section 489.129(1)(h), Florida Statutes, and, if so, what discipline should be imposed?
Findings Of Fact Upon consideration of the oral and documentary evidence adduced at the hearing, the following relevant findings of fact are made: The Department is the agency of the State of Florida vested with statutory authority to regulate the practice of contracting under Chapters 455 and 489, Florida Statutes. Respondent is a licensed certified residential contractor in the State of Florida. Respondent's license number, as certified by Julie Odom, Department's Alternate Records Custodian, is CRC 20166. However, the Administrative Complaint alleges the license number to be CR C020166. Respondent's licensure status is "Delinquent, Active." On May 18, 1989, the Department entered a Final Order in DOAH Case No. 88-3308 wherein Respondent was found guilty of violating Section 489.129(1)(h),(j),(k), and (m), Florida Statutes. On September 27, 2000, the City of Cape Coral, Florida, Contractor's Regulatory Board (Board) entered into a Settlement Agreement (Agreement) with Respondent, in regard to a complaint, Case No. 00-01, wherein Respondent was charged with violating the following Sections of the City of Cape Coral Code of Ordinances: 6-10.1:, To make misleading, deceptive, untrue, or fraudulent representations in the practice of his contracting profession; 6-10.8: Diversion of funds or property received for prosecution or completion of a specified construction project or operation when as a result of the diversion, the contractor is or will be unable to fulfill the terms of his obligation or contract; 6-10.10: Failing in any material respect to comply with the provisions of the Code; 6-10.11: Abandoning of a construction project in which the contractor is engaged or under contract as a contractor. A project is to be considered abandoned after 90 days if the contractor terminates the project without notification to the prospective owner and the City and without just cause; and 6-10.13: Being found guilty of fraud or deceit or of gross negligence, incompetence, or misconduct in the practice of contracting. The Agreement provided that Respondent was pleading No Contest to the charges that he violated the aforementioned sections of the City of Cape Coral's Code of Ordinances and that Respondent's plea did not act as an admission of guilt as to the above mentioned charges. The Agreement provided for Respondent's permit pulling privileges to be revoked for a period of 90 days starting August 23, 2000. By an Order dated December 29, 2000, the Board, after hearing and discussing the charges made against Respondent, voted to accept and approve the Agreement. By this Agreement, Respondent's contracting license was disciplined by the City of Cape Coral. The total investigative and prosecution costs to the Department, excluding costs associated with any attorney's time, is $967.09.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, and a review of Chapter 61G4-17, Disciplinary Guidelines, Florida Administrative Code, with consideration for the repeat violation of Section 489.129(1)(h), Florida Statutes, it is RECOMMENDED that the Department enter a final order finding Respondent, Robert Mensching guilty of violating Subsection 489.129(1)(h), Florida Statutes, and for such violation: (a) impose an administrative fine in the amount of $5,000.00; (b) assess costs in the amount of $967.09; and (c) revoke Respondent's Certified Residential Contractor's License. DONE AND ENTERED this 21st day of March, 2003, in Tallahassee, Leon County, Florida. WILLIAM R. CAVE Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 21st day of March, 2003. COPIES FURNISHED: Kimberly V. Clark, Esquire Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-2202 Robert Mensching 1719 Northeast 23rd Terrace Cape Coral, Florida 33909 Robert Crabill, Executive Director Construction Industry Licensing Board Department of Business and Professional Regulations Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-0792 Hardy L. Roberts, III, General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-2202
Findings Of Fact The Respondent, Neil Wayne Smith, is a certified general contractor holding license number CG C003076. This license was suspended on March 4, 1977, for three years, and was reinstated in March of 1980. On March 21, 1980, the Respondent became the qualifier for WWRS Enterprises, Inc. This corporation had been formed in 1978 by the Respondent and his partner, William Rymers, for the purpose of engaging in the general contracting business. Mr. Rymers became president of WWRS Enterprises, Inc., and the Respondent acted as secretary, supervisor of construction, and manager of financial matters. Although the Respondent did not hold any direct stock ownership, his share of the corporate stock was registered in his wife's name. The Respondent knew that under the law WWRS Enterprises, Inc., needed to have a qualifying agent registered with the Construction Industry Licensing Board, and the Respondent and his partner discussed this subject. Since the Respondent's license was under suspension during 1978 and 1979, it was proposed that a Max Dunaway would become the qualifying agent for WWRS Enterprises, Inc., but the necessary paperwork to register him as qualifying agent for the company was never filed. Thus, until March of 1980, the company was not qualified to engage in general contracting. In November, 1979, the Respondent negotiated a contract on behalf of WWRS Enterprises, Inc., with Wilhelm Hackenberg and his wife, for the construction of an addition to their home in Ormond Beach, Florida. Since the Respondent's license was suspended, Max Dunaway pulled the building permit for the company, but the job was supervised by the Respondent, not Max Dunaway. WWRS Enterprises, Inc., was the contracting company to which at least one subcontractor submitted invoices, Mr. Dunaway's company, Southwide Builders, Inc., was not involved in this transaction. At least four construction jobs were performed by WWRS Enterprises, Inc., but only the Hackenberg job was identified by a precise time-frame during which the company had no qualifying agent. The Respondent does not challenge many of these facts. Instead, he contends that he never held any stock in WWRS Enterprises, Inc., and was only a managing employee of the company, not responsible for its policies. These contentions, however, are not consistent with the weight of the credible evidence, and have been discounted.
Recommendation Based upon the foregoing findings of fact and conclusions of law, it is RECOMMENDED that license number CG C003076 held by the Respondent, Neil Wayne Smith, be revoked. THIS RECOMMENDED ORDER entered on this 21 day of May, 1981. WILLIAM B. THOMAS Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 21st day of May, 1981. COPIES FURNISHED: Michael Egan, Esquire May, 1981. Post Office Box 1386 Tallahassee, Florida 32302 Neil Wayne Smith 14 Rain Tree Drive Port Orange, Florida 32019
The Issue Did Respondent engage in the business or act in the capacity of a contractor or advertise himself or a business organization as available to engage in the business or act in the capacity of a contractor without being duly registered or certified or without having a certificate of authority as alleged in the Administrative Complaint and, if so, what penalty should be imposed?
Findings Of Fact Upon consideration of the oral and documentary evidence adduced at the hearing, the following relevant findings of fact are made: The Department is the Agency of the State of Florida vested with the statutory authority to regulate the practice of unlicensed contracting under Chapters 455 and 489, Florida Statutes. Respondent has never been licensed to engage in contracting within the State of Florida. Specifically, at no time material to this proceeding was Respondent licensed to engage in contracting within the State of Florida. At no time material to this proceeding did the business known as Handyman-No Job Too Small ever apply for or obtain a Certificate of Authority as a Contractor Qualified Business in the State of Florida. Some time around November 15, 2000, Respondent and David Arendt entered into an oral agreement wherein Respondent was to do remodeling work on Arendt's home located at 728 Hampstead Avenue, in Orlando, Florida, for the contract price of $7,000.00. This remodeling work included, but was not limited to, repairs to the front porch, remodeling the master bedroom, and removing and replacing the shed roof with a rolled roof. Arendt paid Respondent a total of $3,500.00 for the work completed by Respondent up until December 18, 2000. Subsequent to December 18, 2000, Arendt dismissed Respondent due to disagreement concerning the work to be completed. Respondent subsequently filed a contractor's Claim of Lien in the amount of $3,500.00 against Arendt's home in Orlando, Florida. At all times material to this proceeding, Respondent was a contractor as that term is defined in Section 489.105(3), Florida Statutes. The total investigative and prosecution costs to the Department, excluding costs associated with any attorney's time, is $496.45.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, and a review of Chapter 61G4-17, Disciplinary Guidelines, Florida Administrative Code, without any consideration for mitigating or aggravating circumstances, it is RECOMMENDED that the Department enter a final order finding Respondent, David C. Marquis guilty of violating Subsection 489.127(1)(f), Florida Statutes, and imposing an administrative fine in the amount of $2,500.00 and costs in the amount of $496.45. DONE AND ENTERED this 28th day of June, 2002, in Tallahassee, Leon County, Florida. WILLIAM R. CAVE Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 28th day of June, 2002. COPIES FURNISHED: Brian A. Higgins, Esquire Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-2202 David Marquis 616 Aldama Court Ocoee, Florida 34761 Hardy L. Roberts, III, General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-2202
The Issue The issues are whether Respondent violated Section 475.25(1)(b), Florida Statutes, and if so, what penalty should be imposed.
Findings Of Fact Petitioner is a state licensing and regulatory agency charged with the duty of prosecuting administrative complaints pursuant to Chapters 455 and 475, Florida Statutes. Respondent is and was, at all times material hereto, a licensed Florida real estate salesperson. He holds license number 0487661. Respondent was working as a real estate salesperson in association with Global Realty of Volusia, Inc. (Global Realty) in Deltona, Florida, when he received his current license. In 1993, Paul Costello owned a residence (hereinafter "the property") in Deltona, Florida. Mr. Costello lived in Miami, Florida. He rented the property to tenants who informed him that cracks were developing in the property's driveway. Additionally, the house was settling and cracking. Mr. Costello subsequently made a claim for the property's reported distress on his homeowner's insurance policy with Republic Insurance Company. The insurance company retained a geotechnical engineering firm to determine the cause of the reported distress. The engineering firm made a site visit to the property on August 22, 1993. A visual inspection revealed cracks up to one and one-half inches wide in the exterior walls of the garage. The engineering firm completed its investigation in September 1993 and concluded that the property was subject to sinkhole conditions/activity. Based on the recommendations of the engineering firm, the insurance company hired a grouting contractor. Deep cement grout injections and shallow grouting (mudjacking) were performed in an attempt to stabilize the loose soil conditions on the property. Steel piles were used to raise and support the structure's footing. The stabilization effort took approximately two months to complete. In 1995, Shawna Lee Christenson and Janice Beery worked as licensed real estate salespersons for Choice Properties, Inc., (Choice Properties) in Deltona, Florida. Jean Gillian, a licensed real estate broker and owner of Choice Properties, gave Ms. Christenson and Ms. Beery their first employment as real estate sales associates. Because they were new to the real estate profession, Ms. Gillian directed Ms. Christenson and Ms. Beery to work as partners. Respondent was also working at Choice Properties when Ms. Gillian hired Ms. Christenson and Ms. Beery. He worked for Choice Properties for several weeks before returning to Global Realty as a sales associate. Sometime prior to October 22, 1995, Ms. Christenson received a call from a woman in Orlando. The woman, a friend of Mr. Costello's, requested Ms. Christenson to perform a market analysis on the property. Ms. Christenson and Ms. Beery performed the market analysis on the property. Subsequently, they received permission from Mr. Costello to list the property for sale as a multiple listing. Ms. Christenson and Ms. Beery signed a listing agreement with Mr. Costello. About that time, or soon thereafter, Ms. Christenson had a telephone conversation with Mr. Costello. During the conversation, Mr. Costello informed Ms. Christenson about possible prior sinkhole activity on the property. Ms. Christenson and Ms. Beery discussed the problem with Ms. Gillian. Everyone at Choice Properties thought the situation was humorous because the property was the first listing for Ms. Christenson and Ms. Beery. Later, Mr. Costello sent Ms. Christenson a document with the name of the geotechnical engineering firm. Ms. Christenson then contacted Mike Wilson, a friend who worked in soils engineering. Mr. Wilson contacted the engineering firm and requested that a copy of its settlement claim evaluation report be sent to Ms. Christenson. Ms. Christenson placed a copy of the engineering firm's report in the property's file at Choice Properties. She disclosed the possible sinkhole activity to everyone who called about the property. She advised all callers that the report was in the file. After learning about the possible sinkhole activity, real estate agents would not show the property to their customers. Sometime in October 1995, Barbara Redding, a single disabled female, contacted Respondent after seeing an advertisement in the newspaper. Respondent was aware that Ms. Redding was a recipient of Social Security benefits. On or prior to October 22, 1995, Respondent telephoned Ms. Christenson to inquire about the property. He told Ms. Christenson that he had a client (Ms. Redding) who was a Social Security recipient and really needed a home. Respondent was interested in the property because it was within Ms. Redding's price range and had an assumable mortgage. Ms. Christenson disclosed the possible sinkhole activity to Respondent. She told him that the engineering firm's report was in the file. Respondent declined Ms. Christenson's offer to fax the report to him. Ms. Christenson was surprised to learn that Respondent intended to show the property to Ms. Redding despite the disclosure about the sinkhole activity. Sometime after the initial phone call, Ms. Beery was outside the office of Choice Properties smoking a cigarette. Ms. Christenson was with Ms. Beery when Respondent arrived. As he walked into the office, Respondent joked about the fact that Ms. Christenson's and Ms. Beery's first listing was on a sinkhole. Respondent showed Ms. Redding four or five houses, including the subject property. After seeing the property, Ms. Redding contacted Respondent to make an offer to purchase it. Respondent prepared a contract for sale and purchase, which Ms. Redding signed on October 22, 1995. Respondent was acting as buyer's agent for Ms. Redding. The contract states that a deposit in the amount of $100 was held in escrow by "Associated Land Title upon acceptance by October 30, 1995." Respondent included the following language in the contract as an addendum: Seller agrees to remove branch from roof and repair roof and soffit where branch is presently lodged. This offer is contingent on Buyer receiving settlement from Social Security that has already been awarded. Seller agrees to close at Associated Land Title contingent on all payments being up to date. Regardless of principal balance, cash to mortgage [sic] will be $6,000 (six thousand dollars.) Respondent hand-delivered the contract for sale and purchase to Choice Properties. Mr. Costello, through Ms. Christenson and Ms. Beery, made a counter offer for a higher purchase price and a $500 deposit. The counter offer eliminated language in the contract addendum related to removal of the branch and repair of the roof. It also deleted the language related to $6,000 cash payment. The offer included an additional addendum to the contract that stated as follows: Buyer acknowledges that there has been disclosure regarding the driveway and previous activity affecting it. Seller reserves the right to leave property on market to entertain offers. Buyer acknowledges property is being sold "AS IS." Ms. Christenson and Ms. Berry asked Ms. Gillian to review the language in the contract addendum before they returned the contract to Respondent. After Ms. Gillian approved the statement, Ms. Christenson and Ms. Berry returned the contract to Respondent. Ms. Redding only had $100 in cash for a deposit. Respondent offered to loan her the other $400. Ms. Redding accepted Respondent's offer and signed a promissory note to that effect. Ms. Redding subsequently paid Respondent the $400 that she owed him. When Ms. Redding reviewed the counter offer, she asked Respondent about the additional language in the contract addendum stating that the buyer acknowledged disclosure about the driveway and previous activity affecting it. Respondent told Ms. Redding that the driveway had been cracked and that a new driveway had been put in. Respondent never discussed possible sinkhole activity with Ms. Redding. The contract closed in November 1995. After painting the house, Ms. Redding moved in on January 20, 1996. Sometime in March or April of 1996, a friend of Ms. Redding's asked her if she knew she had purchased a home on a sinkhole. Ms. Redding then discovered that all of her neighbors were aware of the problem. Ms. Redding contacted Richard Meyer, a professional geologist who works for the Volusia County Environmental Management Department. Mr. Meyer inspected the property in August 1996 and on three subsequent occasions. In the meantime, Ms. Redding contacted Ms. Christenson and Ms. Beery. They told Ms. Redding that they had advised Respondent about the sinkhole activity prior to Ms. Redding's purchase of the property. Ms. Gillian showed Ms. Redding a copy of the engineering report from the property's file at Choice Properties. Ms. Gillian gave Ms. Redding a copy of the report. Ms. Redding showed the engineering report to Mr. Meyer on one of his visits. Mr. Meyer determined that the property definitely was subject to sinkhole activity. He concluded that the property was a "slow sinking hole." Ms. Redding did not contact Respondent after she learned about the sinkhole on the property. At that point in time, Ms. Redding felt intimidated by Respondent. One day Ms. Redding heard a loud crunch as she was going into her garage. She asked the fire department to inspect the property to determine whether it was safe as a dwelling. The fire department determined that the property was not safe for habitation. Ms. Redding moved out of the house and had it demolished in October 1996 after the fire department condemned it. Ms. Redding's insurance company "totaled" the property.
Recommendation Based on the forgoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That the Florida Real Estate Commission enter a final order revoking Respondent's real estate license. DONE AND ENTERED this 28th day of June, 1999, in Tallahassee, Leon County, Florida. SUZANNE F. HOOD Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 28th day of June, 1999.
Findings Of Fact At all times material hereto, respondent was licensed as a registered building contractor having been issued license number RB 00034797 by the State of Florida (see Petitioner's Exhibit 1). On or about January 11, 1982, respondent entered into a contract with Emil and Agnes Gerlt to construct a residence to be located at Singletary Road in Sarasota, Florida. The contract price was $57,420. The home construction agreement was to be part of a trade agreement between the contractor, the respondent, and the Gerlts. Under the terms of the trade agreement, respondent was to receive the Gerlts' existing home, located at 3376 South Seclusion Drive, Sarasota, Florida, in trade for constructing the Gerlts' home. The home was to be completed within one hundred fifty (150) days (see petitioner's Exhibit 6 and Transcript, page 105). By an addendum to the Home Construction Agreement executed by respondent and the Gerlts, the parties to the agreement further agreed that the contract price, $57,420.00, was to be paid as follows: $ 5,742.00 or 10 percent as a down payment $ 5,742.00 or 10 percent when slab is poured $ 8,613.00 or 15 percent when walls are up $14,355.00 or 25 percent when sub roof is on $14,355.00 or 25 percent when drywall is completed $ 8,613.00 or 15 percent when building is completed (see petitioner's Exhibit 6). Emil and Agnes Gerlt had contacted the respondent about construction of a new home through a newspaper ad placed in the Sarasota Herald Tribune. In the ad, respondent had offered to build residences in exchange for the purchaser's existing home. At the time, the Gerlts had been attempting to sell their existing home for some time without success. Mr. Gerlt's health required the relocation from the Gerlts' existing home, a multilevel home, to a single story home. After the Gerlts discussed their requirements with the respondent, a contract was drawn up by the respondent. The Gerlts submitted the contract to their attorney, Robert Johnson, and upon obtaining Johnson's approval, signed the Home Construction Agreement noted above. (See Transcript, pages 28-29). In or about February, 1982, Emil and Agnes Gerlt entered into a trade agreement with respondent to transfer the Gerlts' Seclusion Drive residence to Green. The agreement was subject to the construction, by respondent, of the Gerlts' new home on Singletary Road, in Sarasota County, Florida. As part of the agreement, respondent was to actively seek to sell the Seclusion Drive property. The first $70,000 received from the sale of that property was to go to the Gerlts. Respondent was to receive a 6 percent commission. Any amounts remaining were to go to the Gerlts. If respondent was unable to sell the Seclusion Drive property prior to June 30, 1982, or the date of occupancy for the Singletary Road residence, whichever occurred first, the Seclusion Drive property was to be the sole property of respondent subject to payment in the amount of $70,000 to the Gerlts. (See respondent's Exhibit 1). After the Gerlts and respondent signed the above described agreement, M. Daniel Poling, Nancy Poling and Ethel E. Weathers (Mrs. Poling's mother), came by the Seclusion Drive property, without an appointment, and asked if they could see the residence. Mrs. Gerlt showed the Polings and Weathers the home and then referred them to respondent as the person handling the sale of the home. (See Transcript, pages 37-38). After the Polings and Weathers contacted respondent, respondent drew up a Contract for Sale of Real Estate, dated February 4, 1982, whereby Ethel Weathers was to sell her residence to the Gerlts for the sum of $54,000. At this point a three-way trade was anticipated between the parties. The Gerlts would obtain Weathers' property as well as an additional cash payment in exchange for their own property which would be transferred to the Polings and Weathers. Then the Polings and Weathers' residence, located at Bouganvillea Street, in Sarasota, Florida, would take the place of the Seclusion Drive property in the transaction for construction of a new home between the Gerlts and respondent. The Contract for Sale of Real Estate, dated February 4, 1982, was never fully executed, because Robert Johnson, the Gerlts' attorney, did not approve the agreement. (See petitioner's Exhibit 10 and Transcript pages 109- 110). Subsequent to the time the February 4, 1982 Contract for Sale of Real Estate was prepared, Robert Johnson, as the Gerlts' attorney, prepared another Contract for Sale of Real Estate which was fully executed by the parties. The contract provided that the Gerlts would sell their Seclusion Drive property to the Polings and Weathers for the sum of $84,000. As a special condition of the contract the Polings and Weathers were to execute a Mortgage and Promissory Note in the sum of $42,000, at 15 percent per annum, on Weathers' residence located on Bougainvillea Street, Sarasota, Florida, in favor of the respondent and the Gerlts. In the event that the Mortgage and Promissory Note was not paid off by April 17, 1982, the Polings and Weathers would deed their Bougainvillea property to Green and the Gerlts as a $42,000 credit on the contract. (See petitioner's Exhibit 8). The contract described immediately above further provided that the closing should-occur on the entire transaction on April 17, 1982. However, the Polings and Weathers would remain in the Bougainvillea residence, and the Gerlts would remain in the Seclusion Drive residence until ten days after the respondent obtained a certificate of occupancy for the construction being performed on the Gerlts' Singletary Road residence. Upon completion of the Singletary Road residence the Gerlts were to either assign their interest in the mortgage or quit claim their interest in the Bougainvillea residence to James A. Green. (See petitioner's Exhibit 8). As compensation for his services in the transfer, Green received a transfer fee in the amount of $5,000. (See petitioner's Exhibit 9). On or about March 22, 1982, respondent applied for and obtained a building permit from the Sarasota County, Florida Building and Construction Department for the construction of the Gerlts' new residence at 16700 Singletary Road, in Sarasota County, Florida. (See petitioner's Exhibit 5). In April, 1982, respondent began to perform work on the Gerlts' new home. (See Transcript, page 47). On May 21, 1982, the Gerlts executed an Adjustable Mortgage Loan Note in the amount of $42,000 plus interest, at the rate of 15.75 percent per annum, in favor of Amerifirst Federal Savings and Loan Association. The mortgage was secured by the property located at 2304 Bougainvillea Street. The proceeds of the loan were to be used to pay for the construction of the Gerlts' new home. Under the terms of the original agreement between respondent and the Gerlts, dated February 1982, respondent was to pay all costs related to the financing of construction and he was to hold the Gerlts harmless from said construction mortgage and payments due thereon until the contract was fully completed. (See petitioner's Exhibits 4 and 8, respondent's Exhibit 1 and Transcript pages 48 and testimony of Robert Johnson). Although respondent made one payment of $1,669.02, on October 22, 1982, that check was dishonored and respondent made no further payments on the mortgage for the Bougainvillea property held by Amerifirst Savings and Loan Association. Under the terms of the Adjustable Mortgage Loan Note executed by the Gerlts, mortgage payments were to be made in monthly payments of $556.34 each. (See petitioner's Exhibit 4). Between approximately June 4, 1982 and December, 1982, respondent received the following payments from the Gerlts totaling $33,912: DATE AMOUNT June 4, 1982 $11,484 June 22, 1982 $ 8,613 June 23, 1982 $14,355 Unknown $14,355 (see petitioner's Exhibit 13 and Exhibit 12 and testimony of Johnson) In addition to the amounts noted above, respondent received payment for the following changes or "extras" in construction of the Gerlts' home: DATE AMOUNT WORK PERFORMED June 4, 1982 $ 250.00 Rough-in shower in workroom June 4, 1982 $2,250.00 Complete Porch Sept.3, 1982 $ 98.75 Change kitchen window from awning to slider Sept.3, 1982 $ 35.00 Change present kitchen window TOTAL $2,633.75 In addition to the changes or "extras" in construction noted above, respondent was to perform the following changes or "extras" in construction of the Gerlts home: The front porch area was removed making the front of the house straight across at no extra cost. The cabinets in the kitchen were changed. One set of cabinets and a countertop was changed to eighteen inches and another set was changed to twenty-four inches. There was also a change in the placement of the refrigerator. The Gerlts were to pay for this change. Completion of the shower in the workroom, at owner's expense. The family room was enlarged by two feet six inches resulting in two additional sheets of paneling, at owner's cost. There was an increased amount of tile in the guest bath area resulting in an additional cost of $18.00. The owners selected a more expensive tile for the master bathroom than specified in the contract specifications. The Gerlts were to pay Green $30-$40 to install the more expensive tile. The contractor was no longer obligated to furnish or install the floor covering or carpet. Therefore, the owner was to receive a $3,450 credit on the contract price. (See petitioner's Exhibit 26 and Transcript, pages 59 and 95-98). In approximately August 1982, a dispute arose between the Gerlts and respondent over the extras on the Gerlts new residence. The disputed items included the cost of renting an electric generator for one month, at a cost of $366.30. The Gerlts did not want to pay the rental fee because they had intended to furnish a generator for the project. At the time, Mr. Gerlt worked for a person who owned a distributorship and could easily have obtained a generator for the project. (See Transcript, page 92 and petitioner's Exhibit 21). Respondent asserted that there was a change in the fireplace which resulted in an increased cost on the Gerlts' project. From the beginning, both the Gerlts and the respondent had agreed that the fireplace was supposed to be placed directly on the slab. On March 18, 1982, the Gerlts sent respondent a letter confirming this fact. The respondent constructed the fireplace on a raised hearth and then attempted to charge the Gerlts for the cost of returning the hearth to its original position. (See Transcript, pages 61 and 98). On or about August 10, 1982, Overhead Door Company of Sarasota furnished two garage doors which were used in construction of the Gerlts' Singletary Road residence. The doors were furnished pursuant to an agreement with the respondent. Under the terms of his agreement with Overhead Door Company of Sarasota, respondent was to pay for the doors within thirty days of the invoice date. Inasmuch as respondent failed to timely pay for the doors, Overhead Door Company of Sarasota filed a Claim of Lien in the amount of $514.50 against the Gerlts' property. (See petitioner's Exhibits 17, 13, and 19, and Transcript, pages 76-82 and 132) The dispute between the Gerlts and Green brought work to almost a completed halt. After the receipt of the $14,355 payment due upon completion of the drywall, respondent did little work on the project. Eventually, Green hired an attorney, Frank Calabrese, to represent him in the dispute. On September 2, 1982, the parties and their attorneys met at the job site in an attempt to resolve the dispute. As a result of that meeting, the parties verbally agreed to the items which were changes or extras. The only items designated as changes resulting in an additional cost, to be borne by the Gerlts, were the shower in the workroom, cabinet changes, the additional paneling in the family room, and the changes in amount and quality of tile used in both the guest and master bathrooms. (See petitioner's Exhibit 26 and testimony of Johnson). Nothing was done on the project, despite the agreements of the Gerlts and respondent made on September 2, 1902. Although respondent had agreed to make certain corrections in the home, he did not do so. Finally, at this time the Gerlts discovered that respondent had made no payments on the Amerifirst Savings and Loan mortgage. Therefore, Robert Johnson wrote a letter to respondent's attorney, Calabrese, in attempt to obtain some satisfaction of the problems aforementioned. (See Transcript pages 116-117, 122 and petitioner's Exhibit Number 23). On September 20, 1982, the respondent wrote a letter to Robert Johnson wherein he stated that it was impossible to complete the Gerlts' home until two problems were resolved. Specifically, respondent wanted some written resolution of the amounts to be paid by the Gerlts for extra tile and the extra kitchen cabinets. Respondent further stated, falsely, that Interior Installation, from whom the original cabinets had been ordered, refused to build the cabinets because Mrs. Gerlt had threatened to sue the owner of Interior Installation. Respondent also asserted that the contract between the Gerlts and respondent was breached when the Gerlts refused to pay for the generator on the job. Finally, respondent said that the owners had requested additional outlets which had been installed, but for which the electrician had not been paid. (See petitioners Exhibit 24). In response to this letter from Green, Johnson drafted a letter to Calabrese, on October 4, 1982, on behalf of the Gerlts. By the letter, Johnson agreed to hold the extra amount owing because of changes in amount and quality of tile used on the Gerlts' home until completion of the job, at which time respondent would receive payment. Johnson denied categorically respondent's statements about Interior Installations. Interior Installations agreed to do the work if payment was made in advance. The Gerlts agreed to pay Interior Installations the cost of the cabinet changes. Finally, Johnson indicated that the generator problem could be dealt with in the final resolution of the contract. (See petitioner's Exhibit 25). At this time, respondent already had one other project where respondent had failed to pay Interior Installations for work performed. At the time, he was sixty days late in payment for that project. Inasmuch as Interior Installations was also aware of the conflict between the owners and contractor, they requested full payment prior to beginning the work. They did not receive payment and, therefore, did not do the work. There was no evidence that the Gerlts had threatened to sue the company. Subsequent to this time, a judgment was obtained against respondent for the full amount owing on the other project. (See Transcript, pages 84). On October 14, 1982, respondent talked with Robert Johnson and told him that respondent would order the cabinet work on October 14, 1982, and that the work would be done within two weeks. Respondent told Johnson that he would deliver the Gerlts' house for occupancy by November 4, 1982. Respondent also agreed to attend to the deficit with the Amerifirst Federal Savings and Loan Association Mortgage by October 15, 1982. (See petitioner's Exhibit 27 and Transcript, page 22). Despite his assurances, respondent did not complete those items which he told Johnson he would complete. Respondent did make one payment, by check dated October 18, 1982, to Amerifirst Savings and Loan Association of $1,669.02. However, the check was returned marked "insufficient funds". (See petitioner's Exhibit 4 and Transcript, pages 122-123). On October 28, 1982, Johnson again talked with the respondent. The respondent told Johnson that the paneling in the family room was supposed to be done that day. Respondent also told Johnson that the tile person was supposed to be at the job site that day. Respondent said that Amerifirst Federal Savings and Loan would be paid $1,660. Respondent further stated that he had hired R & M Cabinets to do the cabinetry work on the Gerlts' home. (See Transcript, page 124). Again respondent's promises were not fulfilled. Furthermore, when Johnson called R & M. Cabinets about the cabinetry work on the Gerlts' home, the company requested payment in advance before the work was performed. (See Transcript, page 124). On November 1, 1982, Johnson again spoke to Green about the construction of the Gerlts' residence. Respondent told Johnson that he would have to hire another bricklayer immediately and that the job would be finished by the following Wednesday. (See Transcript, page 124). Again the respondent did not do what he told Johnson he would do on the Gerlts' home. (See Transcript, page 124). On November 24, 1982, the Pollings and Weathers served an eviction notice on the Gerlts, who still resided in their Seclusion Drive residence. Although the Polings and Weathers had agreed to stay in their Bougainvillea residence until 10 days after a certificate of occupancy was issued on the Gerlts' new home, and to allow the Gerlts to remain in their Seclusion Drive residence until the same date, this was with the understanding that the Gerlts' new home would be finished by July, 1982. (See Transcript, page 125 and testimony of Mrs. Gerlt). After the Gerlts received the eviction notice, they contacted Robert Johnson who, in turn, contacted the respondent. According to respondent, the bathroom and the kitchen cabinets were ordered and would be installed by December 8, 1982. By December 10, 1982, the plumbing, air conditioning and cabinetry would be finished. Finally, respondent told Johnson that a certificate of occupancy would be issued by December 15, 1982 for the Gerlts' home. (See Transcript, page 126). On December 8, 1982, respondent told Johnson that the cabinetry in the Gerlts' home would be done by the following Wednesday. Again, however, the respondent failed to perform as promised. (See Transcript, page 127). Although attempts were made to delay eviction, the Gerlts were evicted from their home on December 16, 1982. (See testimony of Mrs. Gerlt). On December 17, 1982, Johnson wrote respondent a letter telling him to finish the Gerlts' home or to be prepared to deliver a cashiers' check. (See Transcript, page 127). On or about December 17, 1982, Generation Electric, Inc., filed a "Claim of Lien" against the Gerlts' Singletary Road property for electrical wiring performed on that residence between June 16, 1982 and December 14, 1982, pursuant to an agreement with the respondent. The Claim of Lien was for the sum of $852.50. (See petitioner's Exhibit 16). Respondent performed no further work on the Gerlts' home. Respondent furnished no notice to the Gerlts or their attorney of his intent to stop work on the Gerlts' home. (See testimony of the Gerlts and Johnson). The Gerlts assumed the completion of the construction project on or about January 14, 1983. At the time respondent ceased work on the Gerlts' home, the construction was only a little over 50 percent completed. The kitchen was not begun; the bathrooms were not begun, with the exception of one bathtub in one bathroom; there was no septic tank; and there was no heat or air conditioning installed in the Gerlts' home. (See Transcript, pages 23-24, 55 and 102). It cost the Gerlts approximately $10,611.60 in labor and materials to complete their home. Mr. Gerlt performed most of the actual work himself. (See Transcript, pages 63-64). At the time respondent ceased work on the Gerlts' property, the mortgage on the Bougainvillea property was in default. Respondent had made no payments on that mortgage even though payments were past due. The Gerlts had to satisfy the mortgage on the Bougainvillea property. (See petitioner's Exhibit 4 and testimony of Mrs. Gerlt).
Recommendation Based on the foregoing findings of Fact and Conclusions of Law, it is recommended that respondent's registered building contractor's license be suspended for a period of three (3) years. RECOMMENDED this 31st day of August, 1984 in Tallahassee, Florida. J. LAWRENCE JOHNSTON Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 31st day of August, 1984 COPIES FURNISHED: Stephanie A. Daniel, Esquire Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 Mr. James A. Green 624 47th Street West Palmetto, Florida 33561 James Linnan Executive Director Construction Industry Licensing Board Post Office Box 2 Jacksonville, Florida 32202 Fred M. Roche, Secretary Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301
