Arizona allows property owners several legal remedies or causes of action when it becomes necessary to litigate against builders and contractors for defective construction work that is performed in less than a workmanlike manner. Show
The various options may include the property owner choosing to file a complaint with the Arizona Registrar of Contractors (ROC) against the builder or contractor’s license, and/or filing a civil lawsuit for damages under the theories of breach of express or implied warranty, breach of contract, and the tort of negligence. When deciding which of these causes of action to pursue, the property owner should take into consideration the nature and extent of the defects, the nature of the resulting damages, and the time that has elapsed since the acts giving rise to the cause of action. Consumer Complaint With Arizona Registrar of ContractorFirst, the property owner’s initial course of action should always be to file a complaint with the Arizona Registrar of Contractors (ROC), based on its broad licensing and regulatory authority over contracting activities, including residential contractors and subcontractors. The rules of the Arizona Registrar of Contractors require that “All work shall be done in a workmanlike manner,” and establish minimum standards for good and workmanlike construction practices. Moreover, Arizona Revised Statutes, and particularly A.R.S. § 32-1154, impose requirements that include compliance with building plans, specifications and applicable building codes, as well as, compliance with the Registrar of Contractors rules that include the previously mentioned workmanship standards. One of the most effective ways for a consumer to get a non-compliant or non-responsive contractor or subcontractor’s attention is to file a complaint with the Arizona Registrar of Contractor (ROC), primarily because this will result in the ROC schedule an inspector from the Registrar’s office to visit and inspect the worksite, and meet with the complainant and the licensee. If the inspector determines that the work is unworkmanlike or incomplete, the inspector will issue a “corrective work order” directing the licensee to fix the problem usually within the next fifteen days from the date of the orders issuance, and followed up by the inspectors return to the work site to ensure that the problem has been satisfactorily addressed. If the problem cannot or is not addressed by the licensee through corrective work because of irreparable damage, or misuse of funds by the licensee, or the licensee is no longer licensed to do the work, the consumer/property owner has the option of proceeding to an administrative hearing, wherein an administrative law judge will determine whether the evidence demonstrates that the licensee has violated any number of provisions under the applicable licensing statute, A.R.S. § 32-1154. It is the property owner’s burden to show through testimony, contracts and/or other documents executed between the parties, photographs, or through testimony of an expert witness that the contractor’s work fell below the minimum workmanship standards. However, the contractor also has the right to defend the allegations of the complaint by using similar method’s to show his work met the Registrar’s minimum required workmanship standards. Only after first obtaining an award and findings that the minimum standards were violated and suspending or revoking the contractor’s license can the consumer property owner submit a claim for compensation through the Registrar’s Residential Contractor Recovery Fund. However, it is only after receiving an order that finds the contractor or subcontractor in violation and suspends or revokes the contractor’s license that a consumer can submit a claim for any type of compensation under the Registrar’s Residential Contractor Recovery Fund. Most consumer’s find it advantageous to initially file a complaint with the Registrar of Contractors Office because this state agency can force the contractor to make corrective repairs to the unworkmanlike problems or suffer consequences that can involve the suspension or revocation of the contractor’s license if he/she fails to do so. Also, this process is usually much less formal, much quicker, and much less costly than the alternative course of action of filing a civil lawsuit in a superior court that usually requires the consumer to retain legal counsel to prosecute his/her claim or, to defend the claims likely put forth by the contractor. The Registrar of Contractor complaint is most effective to force the licensees to fix, or complete, work during the continuum of the construction project. However, a consumer’s right to file a complaint with the Registrar of Contractors is limited to a period of two years from the completion date of the project and the most that a consumer/homeowner can receive from the Recovery Fund is $30,000 per consumer. The consumer does not receive a judgment against the contractor that can otherwise be enforced or collected, but instead, the consumer submits a claim and may have to appear at a subsequent hearing to recover. The burden placed on the consumer to show that the contractor’s work was below the minimum workmanlike standard is less stringent than those required in an “at law” superior court action. Finally, the consumer action brought before the Registrar of Contractors does not include claims by the consumer, or subsequent purchasers that do not have a contractual relationship with the original builder for consequential damages resulting from either damage to property or personal injuries caused by the faulty work. There is also a method of recovery for a consumer that pursues their “at law” action through the superior court system and obtains a judgment against the contractor that ends up being uncollectable. The consumer can take his/her judgment and apply to the Registrar of Contractors Recovery Fund, but again, is limited to a maximum recovery of $30,000 per consumer, regardless of the total amount of the superior court judgment. Superior Court “Actions at Law”If the two-year limitations period for a Registrar of Contractor proceeding has expired, or the consumer does not feel that the Registrar of Contractors is the best venue for their claims, a consumer’s claims may be more effectively pursued in a superior court action under several legal theories including breach of warranty, contract, and tort (negligence). Notice Required and Waiting Period: Arizona Revised Statute, A.R.S. §§ 12-1361, et seq., also referred to as the “Purchaser Dwelling Action” statutes, applies to any action brought against a “seller” of residential property arising out of the condition of the property and, initially requires that prior to filing an action in court the consumer must first provide written “Notice” (by certified mail, return receipt requested) to the “Seller” that advises the seller of the consumer’s intentions to bring a purchasing dwelling action, along with a statement of the factual and legal basis for each such action. If the defects exist in a “multi-unit dwelling action” (i.e. 5 or more owners joining in per A.R.S. §12-1361(5)), the description of reasonable details may list the defects in “sample units." However, the responding “seller” also has the opportunity and right to formally respond with a “good faith written response” offering to make repairs and replace the defects at issue, or to provide monetary compensation or reimbursement to the complaining consumer to satisfy the dispute, including a “reasonable” estimate of when it will be done. Seller must respond (also via certified mail, return receipt requested) within sixty (60) of receipt of the purchaser’s notice, or the purchaser can stop waiting and just file his/her superior court cause of action. Beware, for this statute to apply, the “seller” who is being sued has to be a person or entity “engaged in the business of designing, constructing, or selling dwellings.”The consumer may file an action in the superior court only after waiting ninety (90) days after providing the “seller” with the written notice of intent to file a purchaser dwelling action, or after sixty (60) days if the “seller” declines to respond. If the “seller” issues a written response within the sixty day period, the purchaser will have twenty (20) days thereafter to issue a written reply, which can be a rejection (along with a written explanation of why it was rejected) or a counteroffer. The “seller” with than have ten (10) days to accept the purchaser’s counteroffer or make his “best and final offer” to purchaser. After the ninety (90) day waiting period has passed (or, 60 days if not response is received from the “seller”) and, if no agreement is reached, the purchaser can now commence arbitration (if applicable) or file the Complaint with the superior court. A.R.S. § 12-1363. Following this notice requirement adds incentives for the seller/builder to resolve the dispute by providing him/her prior notice of pending legal action resulting from the defects and, it also allows the consumer to proceed with a lawsuit and recover its attorney’s fees, witness fees, and taxable costs pursuant to A.R.S. § 12-1364, but only if the relief obtain following the conclusion of the lawsuit is more favorable to the consumer/purchaser than that originally offered by the seller in its response to the original purchaser/consumer’s notice. Superior Court Legal Theories of LiabilityIf the consumer/purchaser chooses to file an action in superior court system, the notice to the builder or seller should not only set for the relevant facts supporting each claim of defective workmanship, but should also put the builder or seller on notice of the specific legal grounds on which the builder/seller may be liable to the consumer/purchaser, including breach of contract, express and/or implied warranties, or tort.
If you have questions about construction defects, claims, or causes of action that might be available to you regarding unworkmanlike construction conditions caused by a builder or developer on your property, the real estate attorneys at Platt & Westby, P.C., can advise on which course of action you should take and the best potential claims and remedies to pursue to gain the most expedient, efficient and effective results. Contact our law office or call 602-277-4441 to discuss your claim and receive our professional assistance in resolving your dispute. How do I sue a contractor in Arizona?One of the most effective ways for a consumer to get a non-compliant or non-responsive contractor or subcontractor's attention is to file a complaint with the Arizona Registrar of Contractor (ROC), primarily because this will result in the ROC schedule an inspector from the Registrar's office to visit and inspect the ...
How do I file a complaint against a business in Arizona?Arizona Attorney General - File a Consumer Complaint. Phoenix Metro Area: (602) 542-5763.. In-state Toll-free: (800) 352-8431.. Which agency has the authority to issue a citation to a licensed contractor in Arizona?The ROC also investigates complaints against contractors and is authorized to suspend or revoke a license, conduct hearings, issue citations and assess civil penalties.
How do I write a complaint letter to a construction company?State all the relevant facts concerning the case in question. Include copies of any documents such as receipts, invoices, contracts, or cancelled checks that will support your claim. Include a specific request regarding how you feel the reader should handle the problem and describe any action you intend to take.
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