STUART KOZAL, DOING BUSINESS AS JUMPING EAGLE INN, ET AL., APPELLEES AND CROSS-APPELLEES, V. NEBRASKA LIQUOR CONTROL COMMISSION, APPELLANT, AND ABRAM NEUMANN ET AL., APPELLEES AND CROSS-APPELLANTS
No. S-17-441
Nebraska Supreme Court
September 29, 2017
297 Neb. 938
___ N.W.2d ___
Judgments: Jurisdiction: Appeal and Error. Determination of a jurisdictional issue which does not involve a factual dispute is a matter of law which requires an appellate court to reach its conclusions independent from a trial court. - Jurisdiction: Appeal and Error. Before reaching the legal issues presented for review, it is the duty of an appellate court to determine whether it has jurisdiction over the matter before it.
- ____: ____. Where a lower court lacks subject matter jurisdiction to adjudicate the merits of a claim, issue, or question, an appellate court also lacks the power to determine the mеrits of the claim, issue, or question presented to the lower court.
- ____: ____. When an appellate court is without jurisdiction to act, the appeal must be dismissed. However, an appellate court has the power to determine whether it lacks jurisdiction over an appeal because the lower court lacked jurisdiction to enter the order; to vacate a void order; and, if necessary, to remand the cause with appropriate directions.
- Administrative Law: Liquor Licenses: Judgments: Appeal and Error. Under the Nebraska Liquor Control Act, an оrder of the Nebraska Liquor Control Commission granting, denying, suspending, canceling, revoking, or renewing or refusing to suspend, cancel, revoke, or renew a license may be appealed in accordance with the Administrative Procedure Act.
- Administrative Law: Final Orders: Appeal and Error. Under the Administrative Procedure Act, any person aggrieved by a final decision in a contested case may obtain judicial review in district court.
- Administrative Law: Courts: Appeal and Error. An Administrative Procedure Act proceeding in district court for review of a decision by an administrative agency is not an “appeal” in the strict sense of the term, meaning the рower and authority conferred upon a superior court to reexamine and redetermine causes tried in inferior courts, but, rather, is the institution of a suit to obtain judicial branch review of a nonjudicial branch decision.
- Administrative Law: Judgments: Appeal and Error. In an Administrative Procedure Act review proceeding, the district court reviews the agency‘s decision de novo on the record of the agency and may affirm, reverse, or modify the decision of the agency or remand the case for further proceedings.
- ____: ____: ____. The Administrative Procedure Act provides that a party initiating review in the district сourt must do so by filing a petition in the district court of the county where the action is taken within 30 days of service of the agency‘s final decision and that all parties of record shall be made parties to the proceedings for review.
- Administrative Law: Jurisdiction: Appeal and Error. Where a district court has statutory authority to review an action of an administrative agency, the district court may acquire jurisdiction only if the review is sought in the mode and manner and within the time provided by statute.
- Administrative Law: Parties: Jurisdiction: Appeal and Error. The Administrative Procedure Act‘s requirement that a petitioner make all рarties of record in the agency proceeding parties to the proceeding for review is necessary to confer subject matter jurisdiction on the district court.
- Administrative Law: Parties: Appeal and Error. Because the Administrative Procedure Act is a procedural statute that applies to a variety of agencies and types of agency proceedings, determining which parties qualify as “parties of record” requires looking at the nature of the administrative proceeding under review.
- Legislature: Statutes: Intent. The Legislature may limit the scope of a statutory definition to a particular seсtion, act, or chapter.
- Administrative Law: Liquor Licenses: Parties: Appeal and Error.
Neb. Rev. Stat. § 53-1,115 (Reissue 2010) defines which parties qualify as “parties of record” in proceedings of the Nebraska Liquor Control Commission and thus must be included in the district court‘s Administrative Procedure Act review of the commission‘s proceedings. - Statutes: Intent. When interpreting a statute, the starting point and focus of the inquiry is the meaning of the statutory language, understood in context.
- ____: ____. A court ascertains the meaning of a statute by reading it in pari materia, in light of the broader structure of the relevant act and related statutes.
- Statutes: Legislature: Intent. Where appropriate, a court may consider legislative history in order to better understand a statute‘s context.
- Statutes. It is a fundamental rule of statutory interpretation that courts should, if possible, avoid any interpretation that renders a portion of the statute as superfluous.
- Statutes: Words and Phrases. A statutory definition of a term found in one statute may be considered when interpreting that same term as used in a different statute.
- Administrative Law: Parties: Jurisdiction: Appeal and Error. The failure to make a party of record in the agency proceedings a party to the proceedings for review as required by the Administrative Procedure Act is a failure to seek review in the mode and manner provided by statute that deprives the district court of jurisdiction.
Appeal from the District Court for Lancaster County: ANDREW R. JACOBSEN, Judge. Vacated and dismissed.
Douglas J. Peterson, Attorney General, James D. Smith, and Milissa D. Johnson-Wiles for appellant.
David A. Domina, of Domina Law Group, P.C., L.L.O., for appellees Abram Neumann et al.
Andrew W. Snyder, of Chaloupka, Holyoke, Snyder, Chaloupka & Longoria, P.C., L.L.O., for appellees Stuart Kozal, doing business as Jumping Eagle Inn, et al.
HEAVICAN, C.J., WRIGHT, MILLER-LERMAN, CASSEL, STACY, KELCH, and FUNKE, JJ.
WRIGHT, J.
NATURE OF CASE
The often unremarkable process of renewing a liquor license has involved considerable controversy for the four beer retailers in this case. These retailers are located in the unincorporated border town of Whiteclay, Nebraska, which is just across the state line from the Pine Ridge Indian Reservation in South Dakota, where the sale and consumption of alcohol is
Our decision today does not address the merits of the parties’ respective positions, but rests solely on jurisdictional grounds. To obtain judicial review of an administrative agency‘s order under the APA, a party must include all “parties of record”2 from the agency proceeding. Under the Nebraska Liquor Control Act,3 local residents who formally object to the issuance of a liquor license (citizen objectors) are “parties of record” in the licensure proсeeding before the Commission. In this case, when they sought review in the district court, the retailers failed to include the citizen objectors. Thus, the retailers did not comply with the requirements for judicial review under the APA and the district court lacked jurisdiction over the retailers’ petition for review. Because the district court lacked jurisdiction, its order is void and we lack jurisdiction over this appeal from the district court. We vacate the district court‘s order and dismiss this appeal.
BACKGROUND
The appellees, Stuart Kozal, doing business as Jumping Eagle Inn; Arrowhead Inn, Inc., doing business as Arrowhead Inn; Clay Brehmer and Daniel Brehmer, doing business as State Line Liquor; and Sanford Holdings, L.L.C., doing business as D & S Pioneer Services (collectively the retailers), held Class B liquor licenses, authorizing them to sell packaged beer for consumption off the premises.4 The Commission required the retailers to submit “long form” applications to renew their
After the retailers submitted their applications, the Commission received 13 written objections from citizens of Sheridan County, protesting the renewаl of the retailers’ licenses. That number was later reduced to 12 when the Commission determined in a prehearing order that one of the objectors was not a resident of Sheridan County. Under
The hearing was held on April 6, 2017. On April 19, the Commission voted to deny the retailers’ applications and issued a written order detailing its findings of fact and conclusions of law on April 24.
The following day, the retailers filed a petition, pursuant to
The retailers simultaneously filed a motion to stay the Commission‘s order during the pendency of the review, which order was set to go into effect on April 30, 2017. A hearing was scheduled and held on April 26 in the Lancaster County District Court. Notice of the hearing was given only to the assistant attorney general representing the Commission. The only attorneys appearing at the hearing were those for the retailers and the Commission. The citizen objectors were not included at any point in the district court proceedings.
On April 27, 2017, the same day as the district court‘s order, the Commission appealed the order. We moved the appeal from the Nebraska Court of Appeals’ docket to this court‘s docket.8
On May 26, 2017 (more than 30 days after the Commission‘s order but less than 30 days after the district court‘s order), four of the citizen objectors, represented by counsel, filed a notice of аppeal from the district court‘s order. These citizen objectors argued that they were “parties of record” in the Commission‘s licensure proceeding, but were not made parties to the APA review in the district court. We docketed this appeal together with the Commission‘s appeal, designating the citizen objectors as appellees and cross-appellants.
ASSIGNMENTS OF ERROR
The Commission and the citizen objectors claim the district court lacked subject matter jurisdiction to enter its order vacating the Commission‘s order.
STANDARD OF REVIEW
[1] Determination of a jurisdictional issue which does not involve a factual dispute is a matter of law which requires an
ANALYSIS
[2-4] Before reaching the legal issues presented for review, it is the duty of an appellate court to determine whether it has jurisdiction over the matter before it.10 Where a lower court lacks subject matter jurisdiction to adjudicate the merits of a claim, issue, or question, an appellate court also lacks the power to determine the merits of the claim, issue, or question рresented to the lower court.11 When an appellate court is without jurisdiction to act, the appeal must be dismissed.12 However, an appellate court has the power to determine whether it lacks jurisdiction over an appeal because the lower court lacked jurisdiction to enter the order; to vacate a void order; and, if necessary, to remand the cause with appropriate directions.13
[5] Under the Nebraska Liquor Control Act, an order of the Commission “granting, denying, suspending, canceling, revoking, or renewing or refusing to suspеnd, cancel, revoke, or renew a license” may be appealed “in accordance with the [APA].”14
[6-8] Under the APA, “[a]ny person aggrieved by a final decision in a contested case” may obtain judicial review in district court.15 An APA proceeding in district court for review
[9] The APA provides that a party initiating review in the district court must do so “by filing a petition in the district court of the county where the action is taken” within 30 days of service of the agency‘s final decision.18 It further provides that “[a]ll parties of record shall be made parties to the proceedings for review.”19
[10,11] Where a district court has stаtutory authority to review an action of an administrative agency, the district court may acquire jurisdiction only if the review is sought in the mode and manner and within the time provided by statute.20 We have held that the APA‘s requirement that a petitioner make all “parties of record” in the agency proceeding parties to the proceeding for review is necessary to confer subject matter jurisdiction on the district court.21
Here, the citizen objectors were “parties of record” in the Commission‘s proceeding. The retailers failed to include the
[12] The citizen objectors were “parties of record” in the Commission‘s hearing on the retailers’ license applications. While the APA provides some guidance for when an agency is considered a “part[y] of record” that must be included in APA review of that agency‘s decision,22 it provides no guidance for when a nonagency party is a “part[y] of record.” Nor does it include an all-encompassing definition of “parties of rеcord,” applicable to every type of administrative proceeding. Because the APA is a procedural statute that applies to a variety of agencies and types of agency proceedings, determining which parties qualify as “parties of record” requires looking at the nature of the administrative proceeding under review.23
Here, we must look to the Nebraska Liquor Control Act, which governs the Commission and its liquor license application proceedings, in order to determine whether the citizen objectors were “partiеs of record.” And we must look to the proceedings in this case to see whether the citizen objectors acted as parties and were treated as parties by the Commission.
NEBRASKA LIQUOR CONTROL ACT DEFINES CITIZEN OBJECTORS AS PARTIES OF RECORD
The Nebraska Liquor Control Act, in
[13,14] The retailers argue that the definition of a “party of record” in
[15-17] When interpreting a statute, the starting point and focus of the inquiry is the meaning of the statutory language, understood in context.27 We ascertain the meaning of a statute by reading it in pari materia,28 in light of the broader
Our conclusion that the definition of “party of record” in
Second, the legislаtive history of the bill in which the “party of record” definition was adopted in
For purposes of defining who are “parties of record” in a hearing before the Commission,
[18] Third, the definition of “party of record” in
[19] And even if we were to read the phrase “[f]or purposes of this section” in
And the retailers do not argue that the definition of “party of record” in
The retailers argue that we should look to the definition of “party of record” under
The Commission‘s proceeding, in name and in substance, was “an administrative proceeding before the commission on the application for a retail . . . license.”44 Thus, the relevant definition of “party of record” in
CITIZEN OBJECTORS ACTED AS AND WERE TREATED AS PARTIES OF RECORD IN COMMISSION HEARING
Not only does the Nebraska Liquor Control Act define citizen objectors as “parties of record” in the Commission‘s liquor license application proceedings, but the citizen objectors in this case acted as and were treated as parties in the Commission‘s hearing on the retailers’ license renewal applications.
In Shaffer v. Nebraska Dept. of Health & Human Servs.,46 we concluded that a Medicaid provider was a “party of record” in a Department of Health and Human Services hearing regarding Medicaid coverage of nursing care that should have been included in the district court‘s APA review. One of the principal reasons we relied upon to conclude that the provider was a “party of record” was that “it [was] clear from the administrative record that [the provider] participated in the [department‘s Medicaid] hearing and was treated as a pаrty by the hearing
Here too, the citizen objectors acted as and were treated as parties. The attorney for four of the objectors made a formal appearance as an attorney of record and was listed as an attorney of record in the record of the proceeding. The hearing officer conducted the hearing by allowing the objectors to call witnesses and make their case first, followed by the retailers’ case and response to the objectors’ arguments and evidence.
The citizen objectors’ attorney submitted pretrial witness and exhibit lists, filed and responded to prehearing motions, called witnesses at the hearing, made stipulations, objected to evidence, and examined and cross-examined witnessеs. The primary examination of witnesses at the hearing was conducted by the citizen objectors’ attorney and the retailers’ attorney, with just a few questions asked by the hearing officer and the commissioners. The hearing officer referred to citizen objectors and the retailers as the “parties.” And he referred to the unrepresented objectors as “pro se litigant[s].”
And the Commission wrote in its order that in making its decision, it “considered, foremost, the existence of citizen protest, and the adequacy of existing law enforcement.” For all practical рurposes, the citizen objectors were “parties of record” in the retailers’ licensure proceeding.
CONCLUSION: CITIZEN OBJECTORS ARE PARTIES OF RECORD
[20] Because citizen objectors are defined by the Nebraska Liquor Control Act as “part[ies] of record” in the Commission‘s
CONCLUSION
The retailers failed to include all “parties of record” in the Commission proceeding when they sought review in the district court. The district court never acquired subject matter jurisdiction, and as a result, we lack jurisdiction over this appeal. We vacate the judgment of the district court and dismiss this appeal.
VACATED AND DISMISSED.
