32-1132. Residential contractors' recovery fund; claimants; eligibility; definition
A. The residential contractors' recovery fund is established to be administered by the registrar for the benefit of claimants that are damaged by an act, representation, transaction or conduct of a residential contractor that is licensed pursuant to this chapter and that is in violation of this chapter or the rules adopted pursuant to this chapter.
B. Only the following claimants are eligible for an award from the residential contractors' recovery fund:
1. An individual who both:
(a) Owns residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.
(b) Actually occupies or intends to occupy the residential real property described in subdivision (a) of this paragraph as the individual's primary residence.
2. A limited liability company to which both of the following apply:
(a) The limited liability company owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.
(b) At least one of the limited liability company's members actually occupy or will occupy the residential real property as described in subdivision (a) of this paragraph as their primary residence.
3. A trust to which all of the following apply:
(a) The trust is a revocable living trust.
(b) The trust owns the residential real property that is damaged by the failure of a residential contractor to adequately build or improve a residential structure or appurtenance.
(c) All of the trust's trustors actually occupy or intend to occupy the residential real property described in subdivision (b) of this paragraph as their primary residence.
4. A planned community as defined in section 33-1802 or unit owners' association as defined in section 33-1202 if both:
(a) The builder or developer transferred control to the planned community as defined in section 33-1802 or unit owners' association as defined in section 33-1202.
(b) A licensed residential contractor's failure to adequately build or improve a residential structure or appurtenance caused damage to the common elements within the complex.
5. A lessee of residential real property that meets all of the following:
(a) Contracts directly with a residential contractor or indirectly with a subcontractor of the residential contractor.
(b) Actually occupies or intends to occupy the residential real property described in subdivision (a) of this paragraph as the lessee's primary residence.
(c) Is damaged by the licensed residential contractor's failure to adequately build or improve a residential structure or appurtenance.
C. In order for a claimant to be eligible for an award from the residential contractors' recovery fund, the contractor whose actions damaged the claimant must have been appropriately licensed at one of the following times:
1. The date that the underlying contract was signed.
2. The date that the first payment was made.
3. The date that the underlying work first commenced.
D. For the purposes of this section, "appropriately licensed" means the residential contractor held a valid residential contractor license that was issued pursuant to this chapter and that was not canceled, in inactive status, expired, suspended or revoked.
Notes of Decisions
Ramsey v. Arizona Registrar of Contractors, 384 P.3d 316 (Ariz. Ct. App. 2016).
· cites it 25× “¶4 In August 2014, the ROC moved to dismiss the ease, alleging Ramsey was not eligible for compensation from the Fund because she had not suffered any “actual damages” within the meaning of A.R.S. §§ 32-1132 and -1136(E) because the amount she spent to complete the…”
Shelby v. Arizona Registrar of Contractors, 834 P.2d 818 (Ariz. 1992).
· cites it 16× “§ 32-1136(B) requiring payment of the judgment from the Fund established by A.R.S. § 32-1132 because the developer was no longer doing business and its contractor’s license had been revoked.”
McMurren v. JMC Builders, Inc., 63 P.3d 1082 (Ariz. Ct. App. 2003).
· cites it 6× ““ [T]he contractor or injured person may [then] seek judicial review of the registrar’s final award pursuant to [the Administrative Review Act],” id., which vests jurisdiction in the superior court to review final administrative decisions.”
Magness v. Arizona Registrar of Contractors, 323 P.3d 711 (Ariz. Ct. App. 2014).
· cites it 10× “2 ¶ 11 Under the governing statutes (A.R.S. §§ 32-1132, -1136), however, a party need not secure a judgment against the ROC as a prerequisite to recovering from the Fund.”
State v. Wilkinson, 39 P.3d 1131 (Ariz. 2002).
· cites it 2× “section 32-1132. Section 32-1132 establishes a fund, administered by the Registrar of Contractors, to compensate persons injured by residential contractors.”
Colberg v. Rellinger, 770 P.2d 346 (Ariz. Ct. App. 1988).
· cites it 4× “§ 32-1127. Therefore, we must conclude that the legislature intended no private right of action against qualifying parties.”
Bolser Enter., Inc. v. Arizona Registrar of Contractors, 139 P.3d 1286 (Ariz. Ct. App. 2006).
· cites it 2× “The notice further enclosed a form permitting the Fords to apply to recover monies from the residential contractors’ recovery fund established by A.R.S. § 32-1132 (Supp.2004). ¶ 11 On February 2, Bolser filed a complaint in superior court appealing the ROC’s disciplinary…”
Wilson v. Arizona Registrar of Contractors, 780 P.2d 450 (Ariz. Ct. App. 1989).
· cites it 4× “The section at issue here, A.R.S. § 32-1132, originally provided that “[a]n award from the fund is limited to the actual damages suffered by the claimant, including reasonable attorney fees----” 1981 Ariz.”
In re Curtis, 908 P.2d 472 (Ariz. 1995).
· cites it 2× “A.R.S. § 32-1132(A). An award from the Fund is limited to the lesser of $15,000 or that amount necessary to complete or repair a residential structure or appurtenance within residential property lines.”
Pinnamaneni v. Arizona Registrar of Contractors, 347 P.3d 593 (Ariz. Ct. App. 2015).
· cites it 7× “¶ 19 Because Pinnamaneni, as trustee of the Trust and occupant of the residence, qualifies for recovery from the Fund as a “person injured,” the superior court erred by upholding the ROC’s denial of Pinnamaneni’s claim for recovery from the Fund under A.”
Twin Peaks Constr. Inc. v. Weatherguard Metal Constr., Inc., 154 P.3d 378 (Ariz. Ct. App. 2007).
· cites it 2× “Because A.R.S. § 32-1132, which provides *479 for attorney fee awards in proceedings before the Registrar, did not apply to the claimant’s action, the supreme court determined no fees were awardable.”
— Ariz. Rev. Stat. § 32-1132(A) — 14 cases
Ramsey v. Arizona Registrar of Contractors, 384 P.3d 316 (Ariz. Ct. App. 2016).
“¶4 In August 2014, the ROC moved to dismiss the ease, alleging Ramsey was not eligible for compensation from the Fund because she had not suffered any “actual damages” within the meaning of A.R.S. §§ 32-1132 and -1136(E) because the amount she spent to complete the…”
McMurren v. JMC Builders, Inc., 63 P.3d 1082 (Ariz. Ct. App. 2003).
““ [T]he contractor or injured person may [then] seek judicial review of the registrar’s final award pursuant to [the Administrative Review Act],” id., which vests jurisdiction in the superior court to review final administrative decisions.”
Magness v. Arizona Registrar of Contractors, 323 P.3d 711 (Ariz. Ct. App. 2014).
“2 ¶ 11 Under the governing statutes (A.R.S. §§ 32-1132, -1136), however, a party need not secure a judgment against the ROC as a prerequisite to recovering from the Fund.”
In re Curtis, 908 P.2d 472 (Ariz. 1995).
“A.R.S. § 32-1132(A). An award from the Fund is limited to the lesser of $15,000 or that amount necessary to complete or repair a residential structure or appurtenance within residential property lines.”
— Ariz. Rev. Stat. § 32-1132(B) — 3 cases
Ramsey v. Arizona Registrar of Contractors, 384 P.3d 316 (Ariz. Ct. App. 2016).
“¶4 In August 2014, the ROC moved to dismiss the ease, alleging Ramsey was not eligible for compensation from the Fund because she had not suffered any “actual damages” within the meaning of A.R.S. §§ 32-1132 and -1136(E) because the amount she spent to complete the…”
— Ariz. Rev. Stat. § 32-1132(B)(1) — 1 case
— Ariz. Rev. Stat. § 32-1132(B)(1)(b) — 1 case
— Ariz. Rev. Stat. § 32-1132(B)(3) — 1 case
— Ariz. Rev. Stat. § 32-1132(B)(3)(c) — 1 case
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