Findings Of Fact Respondent is a certified building contractor having been issued license number CB CA03134. At times material herein, the Respondent was the qualifier for and conducted his contracting business through the entity doing business as A-1 Builders, Inc. On June 29, 1981, A-1 Builders, Inc., entered into a contract with Albert E. and Helen E. Chaloux to construct a residence in Sebastian, Florida, for the sum of $53,158.00 (Petitioner's Exhibit 5). The Chalouxs paid the Respondent a $4,000.00 deposit to commence construction (Petitioner's Exhibit 6 and TR pages 8-9). Respondent did not commence construction of the Chaloux residence nor did he return any portion of the tendered $4,000.00 deposit. On February 24, 1981, A-1 Builders, Inc., entered into a contract with Jeffrey and Linda Ferris to construct a residence in Sebastian, Florida, for the sum of $32,849.00 (Petitioner's Exhibit 1). Respondent completed the Ferris residence during July 1981 and A-1 Builders, Inc., through the person of the Respondent, received full payment at the closing (Petitioner's Exhibit 2). At closing, Respondent transmitted a warranty deed to the Ferrises stating that the property was being delivered to them without any encumbrances (Petitioner's Exhibit 3). At the time of closing, Respondent, through the qualifying entity A-1 Builders, Inc., owed several suppliers and contractors monies for material and services which were furnished for the completion of the Ferris residence and remained unpaid. Specifically, Respondent owed the following suppliers and subcontractors monies: Colkitt Sheet Metal and Air Conditioning, Inc. - $1,500.00 (Petitioner's Exhibits 10-11); Russell Concrete, Inc. - $421.20; and White Drywall - $1,634.00 (Petitioner's Exhibit 7). RESPONDENT'S POSITION Respondent acknowledged that he received a $4,000.00 deposit from the Chalouxs and that he did not commence construction as agreed. However, Respondent urges that A-1 Builders underwent financial difficulties based upon unwarranted newspaper accounts and malicious prosecution by the local State Attorney's office and the Petitioner's investigator which forced him near bankruptcy. Respondent did spend some money toward the initial phases of commencing construction for the Chalouxs which consisted primarily of he payment of monies toward the filing of an application fee for the Chalouxs to obtain financing, the preparation of plans and drawings and some unspecified costs respecting the site preparation for the Chaloux residence. Respecting the allegation that Respondent falsely indicated that there were no encumbrances on the Ferris residence, Respondent's only position is that he was forced to foreclose on certain homes and that the various liens and claims of liens which have been filed by the above-referenced suppliers and subcontractors are being paid as monies are received from the foreclosures.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is hereby, RECOMMENDED that the Respondent's certified building contractors' license number CB CA03134 be REVOKED. DONE AND ENTERED this 12th day of April 1984 in Tallahassee, Florida. JAMES E. BRADWELL 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 12th day of April 1984.
The Issue The issue for consideration in this case is whether Respondent's license as a certified building contractor in Florida should be disciplined because of the matters alleged in the Administrative Complaint filed herein.
Findings Of Fact At all times pertinent to the issues herein, the Construction Industry Licensing Board was the state agency responsible for the licensing and certification of building contractors, and the regulation of the construction industry in this state. Respondent, Kenneth McDuff Roesch, III, was certified as a building contractor under license number CB C057040, issued initially on December 20, 1993. On March 20, 1998, he changed the status of his license from "Active d/b/a individual" to "Active qualifying Roesch Housemovers, Inc." (RHI). The evidence does not indicate exactly what the relationship between Respondent and RHI was prior to the contract in issue here. Although Respondent's name does not appear on the contract or on any of the other documentation relevant hereto, at hearing he freely indicated his participation in the management of RHI and his responsibility for actions taken by the company. In September 1996 the City of St. Petersburg advised David Maffo that because of the effects of tropical storm Josephine, he would either have to elevate his house in St. Petersburg or tear it down. On November 22, 1996, Mr. And Mrs. Maffo entered into a contract with RHI to raise by five feet their residence located at 8211 Carolyn Street in St. Petersburg and install a new solid foundation. The price for the contracted work was $23,500, with $11,500 due at the signing of the agreement. The contract form reflects that RHI had been bonded and licensed house movers since 1934, but neither Respondent's license number nor his certification number appears on the contract agreement. The contract agreement was signed by Mark Roesch, Respondent's brother, for RHI. Respondent's name does not appear on the contract form. RHI submitted plans for the work called for under the contract to the Building Department of the City of St. Petersburg on February 26, 1997. The application form was signed for the company by Mark Roesch, Respondent's brother. That same date, February 26, 1997, a permit was issued for the work called for under the contract and the application. The contractor was listed as Roesch Housemovers, Inc. on both the application for the permit and the permit. Mark Roesch was the representative of RHI who signed the application for the permit. According to Mr. Maffo, work on the project started on January 28, 1997, prior to the issuance of the permit, at which time Mr. Maffo paid $4,000 to a representative of RHI. Mr. Maffo paid RHI an additional $10,000 on January 30, 1997, and $5,000 more on March 25, 1997, for a total of $19,000. On February 27, 1997, Glenn Savell, the chief building inspector for St. Petersburg, inspected the work being done by RHI and issued a red tag because there was no footer ground and vertical steel was not tied to the footer steel. Neither Respondent nor any of his employees thereafter called the building department for a final inspection subsequent to the issuance of the red tag, and in March 1997 Respondent advised the Maffos that the work called for under the contract had been completed. Mr. Maffo immediately informed Respondent that the project had not undergone a final inspection, and as a result, the house could not be reoccupied. Mr. Savell again inspected the property on June 12, 1997, and again issued a red tag, this time demanding that Respondent obtain a certification from a structural engineer that the foundation and piers met specifications. Mr. Roesch was aware of the issuance of that red tag, but took no action to obtain the required certificate at that time. On June 25, 1997, Mr. Maffo retained Austin Engineering, Inc., to perform an inspection of the project and paid the firm a fee of $1,275.00. Austin's report, a copy of which was given to Respondent, indicated that the project as accomplished by RHI was not acceptable. Upon receipt of this report, Mr. Maffo and Respondent met to discuss it, and Respondent gave Maffo sufficient assurances so that he, Maffo, started a renovation of the interior of the home to correct the damage done by the storm. However, Maffo did not complete them because all assurances made by Respondent did not come about. At the end of July 1997, Mr. Savell's supervisor, Mr. Hill, directed Respondent by letter to hire a structural engineer of his choice to evaluate the project. It was implied that if Respondent's engineer approved the work, the final approval would be issued. More than a year later, on October 8, 1998, Benson Engineering, Inc., the structural engineering firm retained by Respondent in response to Mr. Hill's letter, visited the masonry foundation and support walls and piers done at the Maffo house, and on October 16, 1998, submitted its report approving the project. Based on this approval, Mr. Savell, for the City, issued final approval even though he did not again personally inspect the work. Petitioner contends that the lapse of time between the last work done and the notice to obtain an individual engineering report in June/July 1997 and the receipt of that report more than a year later was unreasonable. Absent any explanation or justification for the delay, it would so appear. Mr. Maffo had Austin Engineering again inspect the property on January 29, 2000. In its report, Austin took exception to the Benson Engineering evaluation of RHI's work and identified many problems still existing. The project was also examined by Wilbur Yaxley, a licensed professional engineer and expert in structural and construction engineering. He found the same defects as found by Austin. These included: The fill cells used to raise the foundation were never adequately filled with concrete as called for in the plans for the project. In at least one location there was no tie-in from the new foundation to the existing foundation. Several of the pillars used to raise the foundation were loose and able to be moved by hand, and others had fallen over. Several of the pillars used to raise the foundation were not horizontal. The foundation walls contained cracks. The interior piers were not constructed in accordance with their design. The floor of the interior had bowed in the center. The horizontal joint reinforcement was not completed as required by the plans. The project as completed does not comply with the plans approved by the City of St. Petersburg at the time of issuance of the permit. The project as completed is not as sound structurally as it would have been if it had been constructed in accordance with the plans approved by the City. During the first year after retaining Respondent's firm to raise his house, while waiting for Respondent to obtain final approval on the work, Mr. Maffo continued to make his monthly mortgage payments of $1,200 even though he and his family did not occupy the property. For financial reasons he was ultimately required to cease making his mortgage payments and the property was lost to foreclosure in April 2000. The experts who examined the property have concluded that further remedial work estimated to cost approximately $17,000 would be required before it could be occupied. These experts, who are familiar with the project, suggest that a reasonable time to complete it would be four months. It is so found. Respondent's father and brother, both of whom are active in the business, indicated the company has been in business for many years without complaint. Respondent presented the testimonials of several prior clients who appear to have been satisfied with the work done for them, and no evidence to the contrary was presented by the Department.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is recommended that the Construction Industry Licensing Board enter a final order placing Respondent's license as a certified building contractor on probation for one year; imposing a total administrative fine of $950; requiring Respondent to pay $2,625.41 as costs of investigation and prosecution; and requiring Respondent to reimburse the Maffos such sums as can be considered above actual RHI's out-of-pocket costs related to this project. DONE AND ENTERED this 16th day of August, 2000, in Tallahassee, Leon County, Florida. ARNOLD H. POLLOCK 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) 921-6947 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 16th day of August, 2000. COPIES FURNISHED: Robert A. Crabill, Esquire Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-2202 Kenneth McDuff Roesch, III 13650 66th Street North Largo, Florida 33771 Rodney L. Hurst, Executive Director Construction Industry Licensing Board Department of Business and Professional Regulation 7960 Arlington Expressway, Suite 300 Jacksonville, Florida 32211-7467 Barbara D. Auger, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street, Northwood Centre Tallahassee, Florida 32399-0792
Findings Of Fact The Respondent is a registered building contractor having been issued license No. RB0032203. At all times material to this proceeding, he was the president and qualifying officer of RBR Construction Corporation. The Petitioner is an agency of the State of Florida charged with the licensing, regulation of licensure status and appropriate practice standards as pertinent hereto of construction contractors in the State of Florida. On April 11, 1979, the Respondent, doing business as RBR Construction Corporation, entered into a contract with Kathleen R. and George K. Beebe, pursuant to which he was to construct a duplex for the Beebes for a net contracted amount of $47,500. The Respondent engaged in the construction of the duplex until it was approximately 86 percent complete and then ceased all work on the project. At the time the Respondent ceased work on it, he had already received $44,290 of the contracted price. During the course of the construction, at various times, the Respondent requested and received payments or draws from the First Federal Savings and Loan Association of Broward County in the following amounts for the following purposes: Approximately $1,500 for electrical work; Approximately $1,744.32 for mill- work (cabinetry, door trim, etc.); Approximately $1,331 for installation of insulation in the duplex. The Respondent was established to have failed to pay these sums to the appropriate subcontractors who did the work. On or about March 7, 1980, the Respondent signed an affidavit required to obtain a draw payment from First Federal of Broward County. The Respondent stated in the affidavit that the millwork and trim for the duplex had been paid or would be paid from the proceeds of that draw request, which was $5,150. At the time he signed that affidavit, however, the millwork and trim had not been (as yet) paid, and they remained unpaid through the date of the hearing in the amount of $1,744.32. On or about February 13, 1980, the Respondent executed a similar affidavit in conjunction with a request for a draw payment from First Federal for the stated purpose of paying for insulation installed in the duplex. That draw amounted to $13,905. At the time he signed that affidavit, the insulation had not been paid for and remained unpaid through the date of the hearing in the amount of $1,331. On January 21, 1980, the Respondent executed a similar affidavit supporting a request for a draw payment from First Federal of Broward. In that affidavit, the Respondent affirmed that the electrical work provided for in the construction plans for the duplex had been paid for or would be paid from the proceeds of that draw request, which was in a total amount of $2,060. At the time the Respondent signed the affidavit, however, the electrical work had not yet been paid for, and it remained unpaid through the date of the hearing to the extent of $1,500.
Recommendation Having considered the foregoing Findings of Fact, Conclusions of Law, the evidence in the record, the candor and demeanor of the witnesses, and the pleadings and arguments of the parties, it is RECOMMENDED: That the Respondent be found guilty of violating the statutory authorities cited hereinabove in that he abandoned the subject construction project, diverted funds received for the construction of the project with the result that he could not fulfill his obligations with regard to the project, that he signed three separate false statements with respect to the construction of the project, and is guilty of misconduct in the practice of contracting. For these violations, his license should be suspended for a period of one (1) year. DONE and ENTERED this 20th day of January, 1983, in Tallahassee, Florida. P. MICHAEL RUFF, 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 20th day of January, 1983. COPIES FURNISHED: John O. Williams, Esquire 547 North Monroe Street Suite 204 Tallahassee, Florida 32301 A. J. Ryan, Jr., Esquire A. J. Ryan, III, Esquire Hollywood Federal Bldg. 700 East Dania Beach Blvd. Dania, Florida 33004 James Linnan, Executive Director Construction Industry Licensing Board Dept. of Professional Regulation Post Office Box 2 Jacksonville, Florida 32202 Samuel R. Shorstein, Secretary Dept. of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 ================================================================= AGENCY FINAL ORDER ================================================================= STATE OF FLORIDA DEPARTMENT OF PROFESSIONAL REGULATION CONSTRUCTION INDUSTRY LICENSING BOARD DEPARTMENT OF PROFESSIONAL REGULATION, Petitioner, DPR Case No. 0011535 DOAH Case No. 82-446 vs. JAMES J. RUSSO R-B-R Construction Corp. RB 0032203 1412 Washington Street Hollywood, Florida 33020 Respondent. /
The Issue The issue for disposition is whether, as alleged in the Administrative Complaint, Respondent committed various violations of Chapter 489, F.S., regulating the practice of contracting, by failing to complete a roofing job which he had agreed to perform.
Findings Of Fact At all times relevant, Michael W. Ballans was licensed by the State of Florida as a certified building contractor, holding License Number CB C036542. He qualified as an individual doing business at 1107 Oregon Avenue, St. Cloud, Florida 32769. On April 6, 1988, H. Earl Fisher signed his acceptance of a written proposal by Michael Ballans for Ballans to install a new roof on Fisher's double-wide trailer at 7650 E. Irlo Bronson Memorial Highway, in St. Cloud, Florida. The price for the job was $1,575.00, for supplies and labor. Fisher made an initial payment of $1,018.00 on June 6, 1988. Materials were delivered to the job site, but Ballans never commenced work. Fisher contacted Ballans four or five times to try to get him to do the job or to get someone else to do it. Ballans never returned the funds and at one point told Fisher that he could not do the work because he lost his insurance. Fisher did not agree to do the work himself and told Ballans he wanted the money back and the materials removed from his property. Stanton Alexander was qualified as an expert in construction industry contracting, including roofing. He has practiced in the profession for approximately thirty years. He served two terms on the construction industry licensing board, including a term as chairman. He has testified in the past as an expert in construction industry practices. A contractor terminates his responsibility under a contract after payment and final inspection and a certificate of occupancy has been issued. Until then, he is responsible for completion of the job. Proper procedure when a contractor becomes unable, to complete a job is to refund the money and remove the materials or to get permission from the building department and owner to bring in another contractor to complete the work. Michael Ballans did neither, and simply abandoned the job. This deviation from the standards of construction industry practice constitutes incompetency or misconduct.
Recommendation Based on the foregoing, it is hereby, RECOMMENDED That a Final Order be entered finding Michael W. Ballans guilty of violations alleged in Counts I, II and IV of the Administrative Complaint, and imposing a fine of $500.00. DONE AND RECOMMENDED this 16th day of April, 1990, in Tallahassee, Leon County, Florida. MARY CLARK 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 16th day of April, 1990. COPIES FURNISHED: Jack L. McRay, Esquire Dept. of Professional Regulation 1940 N. Monroe St., Suite 60 Tallahassee, FL 32399-0792 Michael W. Ballans 2314 Knob Hill Drive, Apt. #12 Okemos, Michigan 48864 Kenneth D. Easley, General Counsel Dept. of Professional Regulation 1940 N. Monroe St., Suite 60 Tallahassee, FL 32399-0792 Fred Seely, Executive Director DPR-Construction Industry Licensing Board P.O. Box 2 Jacksonville, FL 32202
