114 A.3d 303
Md. Ct. Spec. App.2015Background
- Reliable Contracting was cited by the Maryland Underground Facilities Damage Prevention Authority for failing to call Miss Utility before excavating and for disregarding evidence of underground facilities; Authority proposed $2,000 and $1,000 fines (the latter waivable with training).
- Reliable requested a hearing before the Authority, appeared only by counsel, contested the statute’s constitutionality (separation of powers and allegedly standardless penalty discretion), and the Authority assessed the fines after the hearing.
- Reliable sought judicial review in the Circuit Court for Anne Arundel County; the circuit court affirmed the Authority’s decision and rejected Reliable’s constitutional challenges.
- On appeal, Reliable argued (1) PU § 12-135 impermissibly vested judicial power in the Authority, and (2) PU § 12-135 gave the Authority unbridled discretion to set penalties without legislative standards.
- The Court of Special Appeals reviewed de novo, examined the statutory scheme (including procedural protections and judicial-review right), and considered SG § 10-1001 (a later-enacted statute providing penalty-setting factors) in resolving the penalty-discretion claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PU § 12-135 unconstitutionally delegates judicial power to the Authority | Reliable: Authority performs purely judicial functions and is effectively an unconstitutional court | Authority: It performs quasi-judicial factfinding but decisions are subject to judicial review, so delegation is permissible | Court: Not unconstitutional; agencies may adjudicate if courts retain final review |
| Whether PU § 12-135 vests unbridled penalty-discretion without legislative standards | Reliable: Statute contains no guidance for setting fines (only monetary caps), so delegation is invalid | Authority: Statute limits when penalties apply and relates to health/safety; judicial review and statutory limits cabin discretion | Court: No constitutional defect — SG § 10-1001 supplies statutory factors (severity, good faith, prior violations) and judicial review provides a check |
Key Cases Cited
- Investors Funding Corp. v. County Council for Montgomery Cnty., 270 Md. 403 (1973) (invalidated agency penalty authority lacking legislative standards; recognized limits on delegation)
- Maryland Aggregates Ass’n v. State, 337 Md. 658 (1995) (administrative adjudication acceptable if judicial review preserves courts’ final authority)
- Pressman v. Barnes, 209 Md. 544 (1956) (permitted broad administrative discretion in police/health/safety contexts when flexibility is impracticable to fix by statute)
- Falik v. Prince George’s Hosp. & Med. Ctr., 322 Md. 409 (1991) (noted modern tendency to allow broader delegations to agencies given complexity of government functions)
- Lussier v. Maryland Racing Comm’n, 343 Md. 681 (1996) (agencies may adjudicate provided courts can review agency factfinding)