Opinion ID: 1158320
Heading Depth: 3
Heading Rank: 4

Heading: Factors and Application

Text: The cases are suggestive of some of the factors relevant to whether there has been substantial compliance. Is suspension by operation of law under § 32-1125(A) or for cause under § 32-1154(A)? Did the Registrar's failure contribute to noncompliance? Because the statute is designed to protect the public, the public must in fact be protected while the license is under suspension. Was the contractor financially responsible while its license was suspended? A contractor does this by maintaining its liability insurance, surety bond, workers' compensation insurance, and any other requirement imposed by the Registrar. Failing that, there can be no substantial compliance. Did the contractor knowingly ignore the registration requirements? If so, this is fatal to a claim of substantial compliance. Did the contractor, immediately upon learning of the license suspension or other statutory noncompliance, apply to reactivate the license or remedy the statutory violation? This is a necessary condition to a finding of substantial compliance. Finally, did the failure to comply with our statute prejudice the party the statute seeks to protect? The facts here are not disputed. APM filed a statement of facts in support of its motion for summary judgment under Rule IV(f), Unif.R.Prac.Super.Ct. APM asserted that: (1) its license was suspended for failure to pay the annual fee; (2) it maintained its general liability insurance, workers' compensation insurance, and its contractor's license bond [2] while its license was suspended; and (3) it paid a late fee and had its license reinstated immediately upon learning of the suspension. Capitol did not dispute any of these facts, but did object to their relevance. It thus admitted them. Rule 56(e), Ariz. R.Civ.P. See, e.g., Sato v. Van Denburgh, 123 Ariz. 225, 228, 599 P.2d 181, 184 (1979) (failure to controvert properly supported motion for summary judgment with affidavits or other evidence means admission of movant's version of facts); 10A Charles A. Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure § 2739 (1983). APM satisfies the substantial compliance test. APM's license was suspended by operation of law for its failure to timely pay a renewal fee. As soon as it learned of the suspension, it paid a late fee and had the license reinstated. The Registrar contributed to the problem by failing to honor APM's notice of change of address. At all times during the suspension, APM remained financially responsible by keeping current its surety bond, workers' compensation insurance, liability insurance, and financial documents. Capitol was not prejudiced by APM's suspension.