11-1902-17273-2
STATE OF
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE COMMISSIONER OF LABOR AND INDUSTRY
|
In the
Matter of Nostalgia Homes, Inc., f/k/a Colberg-Young Constr., Inc. |
FINDINGS OF
FACT, CONCLUSIONS, AND RECOMMENDATION |
The above-entitled matter came on for
a prehearing conference before Administrative Law Judge Barbara L. Neilson on
June 30, 2006, at 1:30 p.m. at the Office of Administrative Hearings in
This Report is a recommendation, not
a final decision. The Commissioner of
Labor and Industry will make the final decision after a review of the
record. The Commissioner may adopt,
reject or modify the Findings of Fact, Conclusions, and Recommendations. Under Minn. Stat. § 14.61, the final decision
of the Commissioner shall not be made until this Report has been made available
to the parties to the proceeding for at least ten days. An opportunity must be afforded to each party
adversely affected by this Report to file exceptions and present argument to
the Commissioner. Parties should contact
the Office of the Commissioner of Labor and Industry,
If the Commissioner fails to issue a final decision within 90 days of the close of the record, this report will constitute the final agency decision under Minn. Stat. § 14.62, subd. 2a. The record closes upon the filing of exceptions to the report and the presentation of argument to the Commissioner, or upon the expiration of the deadline for doing so. The Commissioner must notify the parties and the Administrative Law Judge of the date on which the record closes.
STATEMENT OF ISSUES
The
issues presented in this case are whether the Respondent, Nostalgia Homes,
Inc., has failed to satisfy a judgment obtained against it by Purcell, Inc., on
January 30, 2006, and has failed to respond to the Department’s inquiries
regarding the unpaid judgment; issued a worthless check for building materials
purchased in February 2006 from Hanson Building Materials, Inc.; has breached a
construction contract by failing to build a new residence; and has failed to
refund a $61,000 down payment received from two individuals for construction of
the new residence, and has thereby performed in breach of contract and has
demonstrated that it is untrustworthy, financially irresponsible, or otherwise
incompetent or unqualified to act under the license granted by the
Commissioner, in violation of Minn. Stat. §§ 45.027, subd. 7(a)(2) and (4) and
326.91, subd. 1(4) and (6). If so, the
further issue is whether the Respondent’s residential building contractor’s
license should be subject to discipline and/or a civil penalty should be
imposed pursuant to Minn. Stat. §§ 45.027, subds. 6 and 7, and 326.91,
subd. 1.
Based upon all of the proceedings herein,
the Administrative Law Judge makes the following:
FINDINGS OF FACT
1. The Notice of
and Order for Hearing, Order for Prehearing Conference, Order to Show Cause,
and Statement of Charges (“Notice of Hearing”) initiating this contested case
proceeding was served on the Respondent Nostalgia Homes, Inc., f/k/a
Colberg-Young Construction, Inc., via first class mail on May 11, 2006, at the
following address: Nostalgia Homes,
Inc., Attn: Jeremy Lyn Young, 308 SW 15th
Street, Suite 213, Forest Lake, MN 55025.[1]
2.
The Notice of Hearing contained the following language:
Respondent’s
failure to appear at the prehearing conference may result in a finding that the
Respondent is in default, that the Department’s allegations contained in the
Statement of Charges may be accepted as true, and that its proposed
disciplinary action may be upheld.[2]
3. The Notice of
Hearing set a prehearing conference for June 30, 2006, at 1:30 p.m.[3]
4. The Department
filed an Amended Notice of Hearing on June 13, 2006. The prehearing conference remained scheduled
for June 30, 2006, at 1:30 p.m.[4]
5. No one
appeared at the prehearing conference on June 30, 2006, on behalf of the
Respondent. The Respondent did not make
any request prior to the June 30, 2006, prehearing conference for a continuance
or any other relief.
6.
Because the Respondent failed to appear at the prehearing
conference in this matter, it is in default.
7.
Pursuant to Minn. Rules part 1400.6000, the allegations
contained in the Notice of Hearing are hereby taken as true and incorporated
into these Findings of Fact.
Based upon the foregoing Findings of
Fact, the Administrative Law Judge makes the following:
CONCLUSIONS
1.
The Administrative Law Judge and the Commissioner of the
Department of Labor and Industry have jurisdiction over this matter pursuant to
Minn. Stat. §§ 14.50, 45.027, and 326.91.
2.
The Notice of Hearing issued by the Department was proper
and the Department has fulfilled all relevant substantive and procedural
requirements of law and rule.
3.
The Respondent, having made no appearance at the prehearing
conference, and not requesting any continuance or relief, is in default. Pursuant to Minn. Rules part 1400.6000, the
allegations contained in the Notice of Hearing are hereby taken as true.
4.
By failing to satisfy a judgment obtained against it by
Purcell, Inc., failing to respond to the Department’s inquiries regarding the
unpaid judgment, issuing a worthless check for building materials to Hanson
Building Materials, Inc., breaching a construction contract by failing to build
a new residence, and failing to refund a $61,000 down payment, the Respondent
has performed in breach of contract and has demonstrated that it is
untrustworthy, financially irresponsible, or otherwise incompetent or
unqualified to act under the license granted by the Commissioner, in violation
of Minn. Stat. §§ 45.027, subd. 7(a)(2) and (4) and 326.91, subd. 1(4) and
(6). The Respondent ‘s residential
building contractor’s license is subject to discipline and/or the Respondent is
subject to a civil penalty pursuant to Minn. Stat. §§ 45.027, subds. 6 and
7, and 326.91, subd. 1. The imposition of sanctions is in the public interest.
Based
upon the foregoing Conclusions, the Administrative Law Judge makes the
following:
IT IS HEREBY RECOMMENDED that the Commissioner of
Labor and Industry impose discipline against the residential building
contractor’s license and/or impose an appropriate civil penalty against the
Respondent, Nostalgia Homes, Inc., f/k/a Colberg-Young Constr., Inc.
Dated: June 30, 2006
|
/s/Barbara L. Neilson |
|
BARBARA
L. NEILSON |
|
Administrative
Law Judge |
Reported: Default.