Anthony D. Herron, Jr. v. Tennessee Department of Human Services, Division of Rehabilitation Services
W2017-00067-COA-R3-CV
| Tenn. Ct. App. | Dec 18, 2017Background
- Anthony D. Herron Jr., a disabled veteran, was eligible for vocational rehabilitation services and initially pursued flight-instructor training; that plan failed when the flight school closed.
- Herron shifted to a self-employment objective: opening a business selling high-quality hair extensions, and completed a Business Exploration Agreement and related feasibility/market analysis with assistance from his counselor.
- Regional Supervisor George Wright reviewed the submission and identified three specific deficiencies: (1) inadequate identification of nearby competitors within a 15–20 mile radius, (2) insufficient support for projected first-year earnings and monthly sales (e.g., ~334 sales/month), and (3) lack of analysis addressing competition from salons and online retailers.
- Herron submitted a revised analysis but Wright concluded the revisions were insufficient and determined the materials did not merit further consideration; Wright denied support for the self-employment plan.
- Administrative hearings upheld Wright’s decision; the Commissioner’s Designee and Shelby County Chancery Court affirmed. Herron appealed to the Court of Appeals, which affirmed the chancery court’s judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Herron completed required self-employment steps so Regional Supervisor could approve an IPE | Herron: he complied with the Manual and provided requested information, so DRS improperly denied his plan | DRS: Herron failed to supply material information Wright requested, so the sequential process was incomplete | Court: Herron failed to remedy identified deficiencies; DRS properly ended consideration |
| Whether Wright had authority to reject the feasibility/market analysis and stop the process | Herron: Wright should have accepted counselor’s recommendation that self-employment was best | DRS: Manual vests Regional Supervisor with authority to review, request info, and decide whether to support self-employment | Court: Wright acted within his authority under the Procedures Manual |
| Whether the denial was arbitrary, capricious, or unsupported by substantial evidence | Herron: denial lacked basis because he submitted analyses and replies | DRS: record contains substantial, material evidence showing market-saturation and sales-projection problems | Court: decision supported by substantial and material evidence and was not arbitrary or capricious |
Key Cases Cited
- Wayne County v. Tennessee Solid Waste Disposal Control Bd., 756 S.W.2d 274 (Tenn. Ct. App.) (describing the narrow judicial review standard for administrative decisions)
- Jones v. Bureau of TennCare, 94 S.W.3d 495 (Tenn. Ct. App.) (court reviews whether lower court applied Tenn. Code Ann. § 4-5-322(h) standard properly)
- Papachristou v. Univ. of Tenn., 29 S.W.3d 487 (Tenn. Ct. App.) (same point on appellate review scope)