Ramsey v. Arizona Registrar of Contractors
241 Ariz. 102
| Ariz. Ct. App. | 2016Background
- Ramsey obtained a $111,000 judgment against her residential contractor (the Edens) for deficient construction of her home.
- Ramsey spent $52,101.29 to repair and complete the Residence and applied for payment from Arizona’s Residential Contractors’ Recovery Fund (the Fund), seeking up to the statutory $30,000 cap.
- The Arizona Registrar of Contractors (ROC) intervened and objected, arguing Ramsey suffered no "actual damages" because the unpaid balance on the original contract (~$130,000) exceeded her out-of-pocket completion costs.
- The trial court treated the ROC’s motion as an objection, found the ROC had conceded Ramsey’s $52,101.29 expenses, and entered an order directing the ROC to pay Ramsey $30,000 from the Fund.
- The ROC appealed, challenging (1) use of summary procedures without Rule 56 evidence, (2) the trial court’s statutory construction of "actual damages," (3) denial of an evidentiary hearing, and (4) the finding the ROC conceded the $52,101.29 amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Rule 56 govern an application for recovery from the Fund? | Ramsey: No special summary-judgment proof is required; the statute controls. | ROC: Applicant must support summary adjudication with Rule 56 evidence. | Rule 56 does not apply; the statute governs and applications may be granted without evidence unless ROC objects. |
| How to measure "actual damages" under A.R.S. § 32-1132(A)? | Ramsey: Court should not offset completion cost by unpaid portion of original contract. | ROC: "Actual damages" = reasonable cost to complete/repair minus the unpaid part of the original contract. | Adopted ROC’s interpretation: damages limited to reasonable completion/repair cost less unpaid contract amount. |
| Is an evidentiary hearing required whenever the ROC objects? | Ramsey: No hearing needed when the objection raises only a legal issue. | ROC: Any objection entitles the ROC to a hearing to present evidence. | No hearing required if objection presents a purely legal question and there are no disputed facts; ROC must be given reasonable opportunity to be heard. |
| Did the ROC concede Ramsey spent $52,101.29? | Ramsey: ROC effectively admitted that amount in its filings. | ROC: Challenges the conclusion that it conceded the figure. | Substantial evidence supports the trial court’s finding that the ROC conceded the $52,101.29 figure. |
Key Cases Cited
- First Fin. Bank, N.A. v. Claassen, 238 Ariz. 160 (App. 2015) (statutory interpretation reviewed de novo)
- Schwarz v. City of Glendale, 190 Ariz. 508 (App. 1997) (statutory interpretation principles)
- Berndt v. Ariz. Dep’t of Corr., 238 Ariz. 524 (App. 2015) (apply unambiguous statutory text)
- Fleming v. Dep’t of Pub. Safety, 237 Ariz. 414 (App. 2015) (statutory construction guidance)
- Magness v. Ariz. Registrar of Contractors, 234 Ariz. 428 (App. 2014) (hearing required when ROC contests statutory eligibility)
- Kobold v. Aetna Life Ins., 239 Ariz. 259 (App. 2016) (deference to reasonable agency interpretations)
- Maricopa Cty. v. Walsh & Oberg Architects, Inc., 16 Ariz. App. 439 (1972) (measure of recovery for contractor breach)
- Sorensen v. Robert N. Ewing, Gen. Contractor, 8 Ariz. App. 540 (1968) (damages for defective construction)
- A Tumbling-T Ranches v. Flood Control Dist. of Maricopa Cty., 222 Ariz. 515 (App. 2009) (avoiding windfall in damages calculation)
- Bills v. Ariz. State Bd. of Educ., 169 Ariz. 366 (App. 1991) (resolving purely legal issues without remand)
- Mathews v. Eldridge, 424 U.S. 319 (1976) (due process is flexible; hearing requirements depend on circumstances)