Reaves_Cecil_D_AA_07

							  BEFORE THE OFFICE OF ADMINISTRATIVE HEARINGS
                STATE OF OREGON
                                 for the
                    CONSTRUCTION CONTRACTORS BOARD


In the Matter of the Arbitration between:

CECIL D. REAVES,                                             Complaint No: 160761-102
Complainant

And                                                         ARBITRATION AWARD
3 R’S GROUP INC.,
Respondent



                                  STATEMENT OF THE CASE
This complaint was timely filed in accordance with ORS 701.143. All items determined are within
the scope of ORS Chapter 701 and require licensing with the Board. Complainant alleges that
respondent performed improper work installing a refrigerator, which was part of their broader
contract for the remodeling of complainant’s home. Complainant filed a Statement of Damages
form seeking monetary damages in the amount of $2,000.00.

Pursuant to its authority under ORS 701.148(1), and subject to the provisions of ORS 701.148(4),
the CCB, on March 19, 2007, referred this matter to the Office of Administrative Hearings, as
required under ORS 701.149, for binding arbitration, in accordance with OAR Chapter 812,
Division 10. A Notice of Arbitration Hearing, along with a copy of OAR Chapter 812 Division 10,
was served on the parties. David Marcus was appointed as the Arbitrator.

The hearing was held on May 29, 2007 in Salem, Oregon. Complainant Cecil D. Reaves appeared
in person and was not represented by counsel. Respondent appeared through its president, Duane
West, and was represented by counsel, Gregory C. Hansen. Complainant and Mr. West both
testified at the hearing; no other witnesses were called. Having duly heard the proofs and
allegations of the parties, and having considered the entire record, consisting of Exhibits 1 through
66, respondent’s exhibits 101-116 and complainant’s exhibits 201-208, and a digital recording of
the arbitration hearing, I, the undersigned Arbitrator, enter the following:

                                               FINDINGS
In September 2005, complainant contracted with respondent to perform significant remodeling of
the interior of his home. The total contract price was approximately $30,000.00. Respondent
completed the work in early 2006 and complainant has paid respondent in full.



Reaves and 3 R’s Group Inc., CCB complaint no. 160761-102                                  Page 1 of 3
As part of the kitchen remodeling, respondent installed complainant-supplied appliances, including
refrigerator with water supply. Respondent installed the refrigerator using a coiled plastic water
tube, which is common in the industry. The refrigerator was installed in November 2005.

On October 5, 2006, complainant discovered a puddle of water by the refrigerator. Complainant
pulled the refrigerator out from the wall and discovered that there was a pin-hole leak in the plastic
water line and a fine spray of water leaking from the tube. Upon further investigation, complainant
discovered that enough water leakage had occurred to wet the drywall behind the refrigerator, the
subflooring and the flooring beams under the refrigerator and in a larger area around the
refrigerator.

Complainant filed a claim with his insurance company and water damage and mold remediation
work was completed in November 2006. All work was covered under complainant’s homeowner’s
insurance. However, complainant’s insurance policy had a $2,000.00 deductible, which was
complainant’s responsibility. Complainant seeks recovery of that amount from respondent.

Although in his correspondence to the Board, complainant asserted that use of the plastic water line
did not meet the manufacturer’s instructions and standards, he abandoned that argument at hearing
and asserted only that the plastic water line was not properly installed. Complainant presented
credible testimony that a fine spray of water was leaking from the plastic water line when he pulled
the refrigerator out from the wall on October 5, 2006. He also presented sufficient pictorial
evidence to show that the damage caused by the leak was significant. He did not, however, present
any evidence to show when the leaking first began, and he did not present any evidence to show
that leakage resulted from improper work by respondent.

Complainant urges a conclusion that because the plastic water line leaked, and because the
refrigerator had not been moved since it was installed by respondent, the leak must be causally
connected to respondent’s work. I am not persuaded. As complainant, Mr. Reaves had the burden
to prove that improper work by respondent was the cause of the leak in the water line. I do concur
with complainant’s assertion that there is a possibility that respondent performed improper work
installing the refrigerator and the plastic water line. Establishing the possibility of that fact does
not satisfy the burden of proof. Although I am not unsympathetic to damages, inconvenience and
stress complainant has experienced, he has failed to establish that responsibility lies with
respondent.

The testimony of complainant and Mr. West highlights some dispute about the length of time the
leak was active to have caused the damage it did. However, Mr. Reaves testified that he is no
expert and that he knows nothing about water leakage, absorption, mold, etc. Rather, he presented
hearsay testimony about what his insurance adjuster and the ServiceMaster staff, who completed
the repairs, told him. Complainant did not present any direct, reliable evidence to show that the
waterline was crimped and started to leak when it was installed by respondent. Further, as noted by
Mr. West, there is no explanation for how the line could have been leaking for over 10 months
before any visible water accumulation could be observed on the floor.

Based on these Findings, and in accordance with ORS Chapters 701 and 36, and OAR Chapter 812
Division 10, I enter the following:




Reaves and 3 R’s Group Inc., CCB complaint no. 160761-102                                   Page 2 of 3
                                                AWARD
Complaint number 160761-102 is dismissed.



Dated this 30th day of May, 2007




                                                     David Marcus, Arbitrator




Reaves and 3 R’s Group Inc., CCB complaint no. 160761-102                       Page 3 of 3