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13 N.J.A.R. 432

Keenan Corp.; Bureau of Homeowner Protection v
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Citation: 13 N.J.A.R. 432
Decision Date: 1990
Agency: DEPARTMENT OF COMMUNITY AFFAIRS
Synopsis: The Department of Community Affairs sought to revoke respon- dent's builder's registration for failure to comply with two arbitration awards entered as a result of warranty claims by purchasers of new homes built by respondent. The matter was transmitted to the Office of Administrative Law for a hearing. The administrative law judge assigned to the case found that when respondent failed to make repairs on the two homes, as required by arbitration awards under the New Home Warranty Program, the repair work was contracted out and paid for through the New Home Warranty Security Fund. Respondent argued that the bids for repairs were excessive and unreasonable. The judge concluded, however, that this was not a defense. Under N.J.,4.C. 5:25-2.5(a), the Department may deny, suspend or revoke a builder's registration if a builder fails to honor a dispute settlement award or is responsible for an award against the security fund. Respondent was bound by the arbitration awards. The judge ordered respondent's registration revoked. Upon review, this initial decision was adopted by the Com- missioner of Community Affairs. Ellen Casey, Deputy Attorney General, for petitioner (Robert J. DelTufo, Attorney General of New Jersey, attorney) Frank Keenan, President of the Keenan Corporation, for respondent, appearing pursuant to N.J..4.C. 1:1-5.4 State of New Jersey 433
Rule(s) Cited: 5:25-2.5(a) 5:25-5.5(c)3i(2) 5:25-5.5(e)