COBB HOSPITAL, INC. D/B/A WELLSTAR COBB HOSPITAL v. DEPARTMENT OF COMMUNITY HEALTH
307 Ga. 578
Ga.2019Background
- DCH granted Emory University Hospital Smyrna a new certificate of need (CON) to renovate a hospital Emory acquired.
- Wellstar (Cobb Hospital and Kennestone Hospital) appealed the CON to the CON Appeal Panel; the hearing officer refused to consider Wellstar’s challenges to the validity of Emory’s existing CON and excluded related evidence.
- Wellstar appealed to the DCH Commissioner, raised a constitutional due process claim, and the Commissioner affirmed the hearing officer without ruling on the constitutional claim.
- Wellstar sought judicial review in superior court; the trial court rejected Wellstar’s due process argument.
- The Court of Appeals held Wellstar’s constitutional claim was not preserved for appellate review because no administrative official had ruled on it; the Georgia Supreme Court granted certiorari limited to that preservation issue, reversed that division of the Court of Appeals, and remanded for reconsideration of the constitutional claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a constitutional due-process claim must be ruled on by an administrative decisionmaker to be preserved for appellate review | Wellstar: raising the claim during the administrative process and in the trial court suffices; agencies often cannot adjudicate constitutional questions | DCH/Emory: claim was not properly preserved because the administrative decisionmakers did not rule on it | Georgia Supreme Court: agencies are generally unable to decide constitutional claims; requiring an administrative ruling conflates preservation rules and is erroneous; reversed Court of Appeals on this point and remanded |
| Whether the Court of Appeals erred by conflating administrative preservation with the trial-court distinct ruling requirement | Wellstar: the Court of Appeals confused exhaustion/preservation before the trial court with the separate requirement that the trial court distinctly rule to preserve for appellate review | Court of Appeals/DCH: argued claim was not preserved for appellate review due to lack of ruling at administrative level | Court: the Court of Appeals erred by treating an administrative non‑ruling as fatal to appellate preservation; trial court’s distinct ruling is the relevant preservation step for appeals |
Key Cases Cited
- Ga. Dept. of Human Svcs. v. Addison, 304 Ga. 425 (2018) (administrative agencies cannot declare statutes unconstitutional, but constitutional claims must be raised during administrative proceedings to exhaust remedies)
- State Health Planning Agency v. Coastal Empire Rehab. Hosp., 261 Ga. 832 (1992) (constitutional claims may be raised in administrative proceedings and later reviewed by trial court)
- Advanced Disposal Svcs. Middle Ga. v. Deep South Sanitation, 296 Ga. 103 (2014) (trial court must distinctly rule on constitutional claims to preserve them for appellate review)
- East Ga. Land & Dev. Co. v. Baker, 286 Ga. 551 (2010) (clarifies preservation requirements for appellate review)
- Singleton v. Dept. of Human Resources, 263 Ga. App. 653 (2003) (discusses requirement that constitutional claims be ruled on by courts for appellate review)
- John Hardy Group, Inc. v. Cayo Largo Hotel Assoc., 286 Ga. App. 588 (2007) (addresses preservation and review of constitutional claims)
