Link to Final Agency Decision

11-1902-17424-2

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

FOR THE DEPARTMENT OF LABOR AND INDUSTRY

 

 

In the Matter of Kabanuk Contracting, Inc.

 

FINDINGS OF FACT,

CONCLUSIONS, AND

RECOMMENDATION

 

          The above-entitled matter came on for hearing before Administrative Law Judge Barbara L. Neilson on January 9, 2007, at 9:30 a.m. at the Office of Administrative Hearings in Minneapolis, Minnesota.  Michael J. Tostengard, Assistant Attorney General, 445 Minnesota Street, Suite 1200, St. Paul, Minnesota  55101-2130, appeared on behalf of the Department of Labor and Industry ("the Department").  There was no appearance by or on behalf of the Respondent, Kabanuk Contracting, Inc., P.O. Box 209, 43890 Ginger Avenue, Harris, MN  55032, or Kenneth Kabanuk, 1100 Flintwood Street South, Isanti, MN  55040.  The OAH record closed at the conclusion of the hearing on January 9, 2007. 

STATEMENT OF ISSUES

 

The issues presented in this case are whether the Respondent, Kabanuk Contracting, Inc., failed to finish projects for three homeowners, improperly completed two roofing jobs, charged a homeowner for roofing permit that was never obtained, failed to return a down payment, failed to obtain a building permit on one roofing project, failed to obtain final inspections on two projects, and failed to respond to the Department’s requests for information; and, if so, whether the Respondent violated Minn. Stat. §§ 45.027 and 326.91 and Minn. Rules part 2891.0040, subp. 1H, by performing in breach of contract, demonstrating incompetence and untrustworthiness, engaging in fraudulent, deceptive, or dishonest practices, and failing to respond to the Department’s requests for information.  If so, the further issue is whether the Respondent should be subject to disciplinary action and/or a civil penalty pursuant to Minn. Stat. §§ 45.027, subd. 7, and 326.91, subd. 1 (2006). 

          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, and Statement of Charges (“Notice of Hearing”) initiating this contested case proceeding was served on the Respondent Kabanuk Contracting, Inc., P.O. Box 209, 43890 Ginger Avenue, Harris, MN 55032 and Kenneth Alan Kabanuk, 1100 Flintwood Street South, Isanti, MN 55040, on August 7, 2006.[1] 

2.    The Notice of Hearing set a prehearing conference for September 22, 2006, at 1:30 p.m.[2]

3.    Kenneth Kabanuk appeared at the prehearing conference on September 22, 2006, and participated in discussions of potential hearing dates in this matter.  The parties agreed that the hearing would be held on January 9, 2007, commencing at 9:30 a.m.  The administrative law judge sent a written First Prehearing Order to the parties on September 22, 2006, confirming that hearing date.

4.    No one appeared at the hearing on January 9, 2007, on behalf of the Respondent.  The Respondent did not make any request prior to the January 9, 2007, hearing for a continuance or any other relief. 

5.    Because the Respondent failed to appear at the hearing in this matter, he is in default.

6.    Pursuant to Minn. Rules part 1400.6000 (2005), 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 (2006).

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 hearing, and not requesting any continuance or other relief, is in default.  Pursuant to Minn. Rules part 1400.6000 (2005), the allegations contained in the Notice of Hearing are hereby taken as true.

4.    By failing to finish projects for three homeowners, improperly completing two roofing jobs, charging a homeowner for roofing permit that was never obtained, failing to return a down payment, failing to obtain a building permit on one roofing project, failing to obtain final inspections on two projects, and failing to respond to the Department’s requests for information, the Respondent has performed in breach of contract, demonstrated incompetence and untrustworthiness, engaged in fraudulent, deceptive, or dishonest practices, and failed to provide the Department with information in violation of Minn. Stat. §§ 45.027 and 326.91 (2006) and Minn. Rules part 2891.0040, subp. 1(H) (2005). 

5.    The Respondent is subject to discipline and/or a civil penalty pursuant to Minn. Stat. §§ 45.027, subd. 7, and 326.91, subd. 1 (2006).  The imposition of sanctions is in the public interest.

          Based upon the foregoing Conclusions, the Administrative Law Judge makes the following:

RECOMMENDATION

IT IS HEREBY RECOMMENDED that the Commissioner of Labor and Industry impose discipline and/or an appropriate civil penalty against the Respondent, Kabanuk Contracting, Inc.

Dated:  January 18, 2007

s/Barbara L. Neilson                                 

BARBARA L. NEILSON

Administrative Law Judge

Reported:  Default. 

 

NOTICE

          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, 443 Lafayette Road, St. Paul, MN  55155, to ascertain the procedure for filing exceptions or presenting argument.  Pursuant to Minn. Stat. § 14.62, subd. 1, the Agency is required to serve its final decision upon each party and the Administrative Law Judge by first-class mail or as otherwise provided by law.  

 

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.

 

 

 



[1] Affidavit of Service by U.S. Mail of Jean-Anne Gates, attached to Notice of Hearing.

[2] Notice of Hearing, p. 1.