Ohio Fresh Eggs, L.L.C. v. BoggsOhio Fresh Eggs, L.L.C. v. Boggs
Lead Opinion
{¶ 1} Appellant, Ohio Fresh Eggs, L.L.C., appeals from an order of the Environmental Review Appeals Commission (“ERAC”), which granted appellee Robert J. Boggs, Director of Ohio Department of Agriculture’s (“ODA”) motion to dismiss/motion for summary judgment
{¶ 2} On September 28, 2007, Ohio Fresh Eggs filed a motion with the ODA seeking an award of attorney fees pursuant to
{¶ 3} On August 23, 2007, ERAC vacated the ODA’s order. ERAC determined that ODA’s finding that the permit applications contained false or misleading information, based upon ODA’s determination that Ohio Fresh Eggs’ confidential investor should have been disclosed as someone with a right to control manage
{¶ 4} ODA appealed ERAC’s order to this court. ERAC’s decision was affirmed on May 20, 2008. Ohio Fresh Eggs, L.L.C. v. Wise, 10th Dist. No. 07AP-780,
{¶ 5} Ohio Fresh Eggs filed its motion for attorney fees with ODA within 30 days of ERAC’s order vacating ODA’s revocation of Ohio Fresh Eggs’ permits to install and permits to operate. Ohio Fresh Eggs filed its motion seeking an award “as the prevailing eligible party under Ohio Revised Code 119.092.” The hearing officer for ODA denied Ohio Fresh Eggs’ request for an award of attorney fees, finding that Ohio Fresh Eggs was not a “prevailing eligible party” under
{¶ 6} Ohio Fresh Eggs appealed the hearing officer’s decision to ERAC. ODA filed a motion to dismiss the appeal, which ERAC converted to a motion for summary judgment. After finding that it did have subject-matter jurisdiction to hear the appeal regarding the denial of attorney fees, ERAC determined that Ohio Fresh Eggs was not a prevailing eligible party as defined in
{¶ 7} Ohio Fresh Eggs now appeals to this court and assigns the following errors:
1. The Environmental Review Appeals Commission (“ERAC”) erred in affirming the Ohio Department of Agriculture’s (“ODA”) denial of Ohio Fresh Eggs, LLC’s (“OFE”) Motion for Attorneys’ Fees arising out of ODA’s unreasonable permit revocation action against OFE.
2. ERAC erred in affirming the ODA’s denial of OFE’s Motion for Attorneys’ Fees which violated OFE’s due process and equal protection rights under the Ohio Constitution and United States Constitution.
3. ERAC erred by converting ODA’s Motion to Dismiss to a Motion for Summary Judgment because it deprivеd OFE of its right to prosecute itsappeal pursuant to ERAC’s rules and to a de novo hearing as required by R.C. §§ 119.092 and 3745.05.
{¶ 8} We begin by addressing Ohio Fresh Eggs’ first assignment of error, in which it argues that ERAC erred in dismissing its appeal and affirming the ODA’s denial of its motion for attorney fees arising out of the permit-revocation action. Ohio Fresh Eggs contends that ODA’s denial of its motion for attorney fees was unreasonable, unlawful, and an abuse of discretion because Ohio Fresh Eggs ultimately prevailed in challenging ODA’s order revoking its permits. Ohio Fresh Eggs argues, inter alia, that it was the prevailing party; the hearing officer’s determination was in conflict with the previous findings of ERAC; the hearing officer relied on his admitted bias in determining that ODA’s initiation of the underlying action was substantially justified; and it timely filed its motion for an award of attorney fees. Ohio Fresh Eggs further argues that ERAC’s decision to dismiss its motion for attorney fees and to uphold ODA’s denial of the motion was nоt supported by reliable, probative, and substantial evidence and was not in accordance with the law.
{¶ 9} We agree that ERAC erred in affirming ODA’s denial of the motion for attorney fees. However, our reason for finding error is not due to any of the errors alleged by Ohio Fresh Eggs, but because we find ERAC did not possess the required subject-matter jurisdiction to hear the appeal.
{¶ 10} ERAC is an administrative agency. Wooster Iron & Metal Co. v. Whitman (1973),
{¶ 11} Ohio follows the “American rule” with respect to attorney fees. Under this rule, each party pays his or her own attorneys’ fees under most circumstances. However, there are exceptions to this rule, which include the following: contractual provisions between partiеs that shift the costs of defending; circumstances where there has been a finding of bad faith; and statutory provisions which specifically provide that a prevailing party may recover attorney fees. McConnell v. Hunt Sports Ent. (1999),
For purposes of this section, decisions by referees or examiners upоn motions are final and are not subject to review and approval by an agency. These decisions constitute final determinations of the agency for purposes of appeals under division (C) of this section.
{¶ 12}
A prevailing eligible party that files a motion for an award of compensation for fees under this section and that is denied an award or receives a reduced award may appeal the determination of the referee, examiner, or agency to the same court, as determined under section 119.12 of the Revised Code, as the party could have appealed the adjudication order of the agency had the party been adversely affected by it. An agency may appeal the grant of an award to this same court if a referee or examiner made the final determination pursuant to division (B)(3) of this section. Notices of appeal shall be filed in the manner and within the period sрecified in section 119.12 of the Revised Code.
Upon the filing of an appeal under this division, the agency shall prepare and certify to the court involved a complete record of the case, and the court shall conduct a hearing on the appeal. The agency and the court shall do so in accordance with the procedures established in section 119.12 of the Revised Code for appeals pursuant to that section, unless otherwise provided in this division.
The court hearing an appeal under this division may modify the determination of the referee, examiner, or agency with resрect to the motion for compensation for fees only if the court finds that the failure to grant an award, or the calculations of the amount of an award, involved an abuse of discretion. The judgment of the court is final and not appealable, and a copy of it shall be certified to the agency involved and the prevailing eligible party.
(Emphasis added.)
{¶ 13}
Any party adversely affected by any order of an agency issued pursuant to an adjudication denying an applicant admission to an examination, or denying the issuance or renewal of a license or registration of a licensee, or revoking or suspending a license, or allowing the payment of a forfeiture * * * may appeal from the order of the agency to the court of common pleas of the county in which the place of business of the licensee is located or the county in which the licensee is a residеnt * * *. If any party appealing from the order is not a resident of and has no place of business in this state, the party may appeal to the court of common pleas of Franklin county.
Any party adversely affected by any order of an agency issued pursuant to any other adjudication may appeal to the court of common pleas of Franklin county * * *.
{¶ 14} The underlying action involving the revocation of Ohio Fresh Eggs’ permits was governed by the procedures set forth in
The denial, modification, suspension, or revocation of a permit to install, permit to operate, or NPDES permit without the consent of the applicant or permittee shall be preceded by a proposed action stating the director’s intention to issue an order with respect to the permit and the reasons for it.
The director shall not issue an order that makes thе proposed action final until the applicant or permittee has had an opportunity for an adjudication hearing in accordance with Chapter 119. of the Revised Code, except thatsection 119.12 of the Revised Code does not apply. An order of the director that finalizes the proposed action or an order issuing a permit without a prior proposed action may be appealed to the environmental review appeals commission under sections 3745.04 to 3745.06 of the Revised Code.
{¶ 15} Although
{¶ 16} In tаking a look at ERAC’s jurisdictional analysis, it is clear that ERAC found
{¶ 17} Using rules of statutory construction, ERAC determined that the later enacted and more specific statutory procedure set forth under
{¶ 18} An administrative agency can exercise only those powers that are expressly conferred upon it by the Ohio General Assembly. Shell v. Ohio Veterinary Med. Licensing Bd.,
{¶ 19} In construing a grant of administrative power from a legislative body, the intention of that grant of power, as well as the extent of the grant, must be clear, and, if there is doubt, that doubt must be resolved against the grant of power. D.A.B.E. v. Toledo-Lucas Cty. Bd. of Health,
{¶ 20} In addition, where jurisdiction is dependent upon a statutory grant, courts are without authority to create jurisdiction when the statutory language does not. Only the General Assembly can do that. Waltco Truck Equip. Co. v. Tallmadge Bd. of Zoning Appeals (1988),
{¶ 21} “A basic rule of statutory construction requires that ‘words in statutes should not be construed to be redundant, nor should any words be ignored.’ ” D.A.B.E. at ¶ 26, quoting E. Ohio Gas Co. v. Pub. Util. Comm. (1988),
{¶ 22} Furthermore, statutory language “ ‘must be construed as a whole and given such interpretation as will give effect to every word and clause in it.’ ” D.A.B.E. at ¶ 26, quoting State ex rel. Myers v. Spencer Twp. Rural School Dist. Bd. of Edn. (1917),
{¶ 23} Although administrative agencies may exercise quasijudicial powers and may have some of the attributes of a court, they are not courts, and under the Ohio Constitution, they cannot be considered as such. Application of Milton Hardware Co. (1969),
{¶ 24} In order to endorse ERAC’s determinatiоn that it possesses jurisdiction over this appeal, we would be required to broadly interpret
{¶ 25} Furthermore, in order to uphold jurisdiction under ERAC’s analysis, we would need to ignore the word “court” or substitute the word “tribunal” for the word “court” multiple times throughout
{¶ 26} ERAC is not a court of common pleas or even simply a court. Instead, ERAC is an administrative body that has only those powers that are conferred upon it by statute. ERAC has no inherent authority. The laws of statutory construction simply do not permit us to overlook the use of the word “court” multiple times throughout
{¶ 27} Contrary to Ohio Fresh Eggs’ assertion that
{¶ 28} As previously stated, authority that is conferred by the General Assembly cannot be extended by an administrative agency. Burger Brewing Co.,
{¶ 29} In construing a grant of administrative power from a legislative body, the intention of that grant of power, as well as the extent of the grant, must be clear and if there is doubt, that doubt must be resolved against the grant of power. D.A.B.E. at ¶ 40, quoting A. Bentley at 47,
{¶ 30} There is no express provision within
{¶ 31} Because Ohio Fresh Eggs has brought this action pursuant to its request for attorney fees under
{¶ 32} We acknowledge that the end result in this type of action would appear to be inequitable, given that
{¶ 33} We find that ERAC did not have jurisdiction to hear this appeal, and therefore, ERAC’s order was not in accordance with the law. However, because we find that ERAC lacked jurisdiction to hear this appeal, we affirm ERAC’s dismissal of Ohio Fresh Eggs’ appeal, albeit on different grounds than those found by ERAC. Therefore, Ohio Fresh Eggs’ first assignment of error is
Order affirmed.
Notes
. ERAC converted ODA’s motion to dismiss into a motion for summary judgment.
. ERAC was formerly known as the Environmental Board of Review, which was also created under
Concurrence Opinion
concurring separately.
{¶ 34} I agree with the majority’s conclusion that ERAC lacked jurisdiction to consider Ohio Fresh Eggs’ appeal from ODA’s denial of its motion for attorney fees. I write separately, however, because I reach that conclusion by wаy of a different analysis.
{¶ 35} The agency action underlying this appeal was an order issued by ODA that revoked Ohio Fresh Eggs’ permits to install and operate relating to its egg-production business.
{¶ 36} R.C. Chapter 119 sets out the process by which a state agency may promulgate rules, issue orders, and hold hearings. Important for our purposes,
{¶ 37}
{¶ 38}
{¶ 39}
{¶ 40} First,
{¶ 41} Second,
{¶ 42} For these reasons, I agree with the majority’s conclusion that ERAC lacked jurisdiction to hear this appeal, and I would affirm ERAC’s dismissal of Ohio Fresh Eggs’ appeal.