Theodore PRIESTER v. BALTIMORE COUNTY, MARYLAND, et al.
No. 1817, Sept. Term, 2015
Court of Special Appeals of Maryland.
Filed: March 29, 2017
157 A.3d 301
Jоnathan R. Krasnoff (Law Office of Jonathan R. Krasnoff, LLC, Catonsville, MD and John M. Singleton, The Singleton Law Group, Lutherville, MD) all on the brief, for Appellant
Jennifer R. Frankovick (Michael E. Field, County Attorney, on the brief) Towson, MD, for Appellee
Meredith, Nazarian, Leahy, JJ.
Appellant Theodore Priester, a firefighter, exercised his rights under the administrative grievance process established by a memorandum of understanding between his union and his employer, Baltimore County—the appellee here—to challenge the County‘s termination of his employment. After a four-member administrative hearing board deadlocked and was unable to reach a final decision on his de novo appeal, the board notified Priester that it would rehear his grievance. Before the board scheduled a new hearing, Priester filed suit seeking writs of administrative and traditional mandamus in the Circuit Court for Baltimore County, asking the court, inter alia, to order that the board issue its preliminary tied vote as a final order. The circuit court granted summary judgment in favor of the County, and Priester appealed.
We hold that because the board has not yet issued a final order and plans to rehear the appeal, Priester has not exhausted his administrative remedies, and his action does not fall within a recognized exception to the exhaustion doctrine. Therefore, the underlying mandamus action was not properly before the circuit court and should have been simply dismissed.
BACKGROUND
The Baltimore County Fire Department (“Department“) began an investigation in March of 2013 into allegations that Fire Captain Theodore C. Priester, Jr., sexually harassed a female subordinate and created a hostile work environment. During the investigation, other female employees came forward with similar allegations.1
On April 9, 2013, the Department issued a “Notification of Charges and Specifications” to Priester. The Notice assimilated a litany of charges by female employees and others concerning Priester‘s alleged offensive, predatory, and discriminatory behavior over the course of several years.2 The
The Administrative Hearing Board held that hearing on April 30, 2013, and found Priester guilty of violating 18 separate Department rules and regulations, as well as three provisions of the Baltimore County Code. The Hearing Board recommended unanimously that the County terminate Priester‘s employment. Fire Chief John J. Hohman hand-delivered to Priester a copy of the Hearing Board‘s recommendation, as well as a letter the Fire Chief signed indicating that he was upholding that recommendation. The letter alsо advised Priester that he could choose one of two routes to appeal his termination: (1) “request that the Fire Chief reconsider the recommendation of the Administrative Hearing Board“; or (2) “file a grievance that would begin at Step 4” of the five-step appellate process set forth in the Memorandum of Understanding (“MOU“) between the County and Priester‘s union, the Baltimore County Professional Fire Fighters Association, I.A.F.F. Local 1311.3 The County issued a formal notice of dismissal, signed by both Fire Chief Hohman and County Director of Human Resources, George Gay, deeming Priester‘s termination effective as of May 16, 2013.
Priester chose to appeal his termination pursuant to grievance procedures outlined in the MOU. His termination was then upheld through Step 4, by Fire Chief Hohman, and Step 5, before the Administrative Law Judge for Baltimore County (“ALJ“), who issued an eight-page decision on October 21, 2013.
Priester exercised his final right of appeal in the grievance process and appealed the ALJ‘s decision to the Personnel and Salary Advisory Board (“PSAB” or “Board“), before which he was entitled to a de novo contested case hearing pursuant to Baltimore County Charter, Article VIII,
Four days later, his counsel apparently sent the PSAB a letter inquiring into its procedures that would govern Priester‘s hearing and appeal.4 The PSAB‘s counsel responded, advising him of the procedure for subpoenaing witnesses and stating:
Consistent with
§ 3-3-1305 of the Baltimore County Code, 2003, the Board has not chosen to adopt a formal set of rules, or to require adherence to either the Rules of Procedure or the Rules of Evidence applicable in the courts of Maryland. The hearing is an informal proceeding designed to give all parties an opportunity to present a fair case without the need to retain counsel.
Regarding compelling witnesses to appear, the Board requests that the parties in a hearing provide the list fifteen (15) working days prior to your scheduled hearing. Your request must indicate what department the employee is employed by, the supervisor‘s name, and the employee‘s job function. You must also indicate in your request, the purpose and nature of each witness’ testimony. We are only able to serve subpoenas approved by the Board within the confines of Baltimore County. Please be aware that the power of the Board to subpoena County employees, as stated at § 3-3-1305(b)(3)(iii) , is discretionary. As such the Board reserves the right to deny a request to subpoena or not heаr from a witness, if it deems the testimony repetitive, cumulative to [or] otherwise irrelevant to the facts of the matter under consideration.
Over the course of three days between March and May of 2014, a quorum of four PSAB members heard Priester‘s appeal. The proceeding concluded on the third day, May 30, 2014, at which point the four members convened in private and voted. Two members voted in favor of Priester‘s termination and two members voted in favor of reinstating Priester without back pay. Still without a decision from the PSAB on July 31, 2014, Priester filed with the County an application for retirement seeking pension benefits.5
On August 12, 2014, PSAB Chairman Terrance Sheridan sent Priester‘s counsel a letter informing him that the PSAB had constructed “a draft Order in the matter of Theodore Priester,” but that “the PSAB had a . . . 2-2 tie in the Priester matter.”6 The letter explained that the Board‘s counsel and Secretary had both confirmed for Chairman Sheridan that in the event of a tie, the PSAB‘s past practice has been to uphold the lower ruling. “Nevertheless,” the letter concluded, “[Chairman Sheridan] has asked the PSAB‘s Secretary to set the . . . Priester matter[] in for new hearings before the PSAB as soon as possible[.]” Then on October 15, 2014, Secretary to the Board, George Gay—who had previously signed Priester‘s Notice of Dismissal in his other role as Director of Human Resources—sent Priester‘s counsel a follow-up letter notifying him that, a weеk prior, the PSAB formally voted to rehear Priester‘s appeal and that his counsel would be advised of the hearing‘s date, time, and location.
Three months later, the PSAB had not set a date for a rehearing or taken further action, and on January 15, 2015, Priester filed a complaint in the Circuit Court for Baltimore County for writs of administrative mandamus, invoking
The County responded by filing a motion to dismiss, or in the alternative, a motion for summary judgment, or to stay proceedings pending resolution by the PSAB. In support of its motion, the County argued that there was no final decision from which Priester could appeal; that Priester had not exhausted his administrative remedies; that there is no decisional law in Maryland рreventing the PSAB from deciding to rehear an administrative appeal that results in a tie vote; and that it would be improper for the court to require the PSAB to adopt written rules of procedure because the County Code does not require written rules and Priester has failed to show that the Board violated its mandate in any way.
Priester opposed the County‘s motion by filing what he characterized as a cross-motion for summary judgment. In the memorandum supporting that motion, he argued that his action for mandamus was proper because he had demonstrated a “clear and undisputable legal right” to have his case heard and decided, and that the PSAB had a corresponding non-discretionary legal duty to hear and decide his case. Priester insisted that the exhaustion doctrine did not apply to his case because the PSAB‘s decision to rehear his appeal was an unauthorized procedure, and that even if the doctrine did apply, he had exhausted his remedies by taking part in one PSAB hearing. Priester also restated the due process and fundamental fairness arguments he made in his original filing.
- “Did the circuit court err in failing to issue a writ of mandamus compelling the PSAB to comply with its mandatory and ministerial duty to promulgate and adopt, through notice and comment rulemaking, procedural regulations as required by the
Baltimore County Code, § 3-3-1305(a) ?” - “Did the circuit court err in failing to compel the PSAB to perform its ministerial duty to formally issue its 2-2 decision, and preventing the PSAB‘s unauthorized attempt to re-hear Priester‘s personnel case?”
- “Did the circuit court err in failing to issue an administrative writ of mandamus ordering that Priester be reinstated because it is undisputed that the county failed to convince a majority of the PSAB that a preponderance of the evidence supported his termination?”
DISCUSSION
I.
Before we consider the merits of an appeal, we must first be certain the action is justiciable. The County challenges justiciability on two grounds. First, it contends that Priester‘s administrative appeal is not yet ripe for judicial review because the PSAB has not issued a final decision, meaning that Priester has not exhausted his administrative remedies. The Court of Appeals has instructed that exhaustion of administrative remedies is a threshold issue that we treat “like a jurisdictional issue. Consequently, . . . exhaustion of administrative remedies will be addressed by this Court sua sponte even though not raised by any party.” Renaissance Centro Columbia, LLC v. Broida, 421 Md. 474, 487, 27 A.3d 143 (2011) (quoting Bd. of Educ. for Dorchester Cnty. v. Hubbard, 305 Md. 774, 787, 506 A.2d 625 (1986) (emphasis in Hubbard)).
Second, the County argues that Priester‘s appeal is moot because he retired from the Fire Department when he sought his retirement benefits before the PSAB heard his appeal, thereby depriving the PSAB of its ability to reinstate Priester—his desired remedy. Mootness, like administrative exhaustion, is a threshold issue that we must consider before addressing the merits of the questions presented. Suter v. Stuckey, 402 Md. 211, 219, 935 A.2d 731 (2007). The central question in the County‘s mootness claim, however, is whether, upon application for retirement benefits, Priester permanently resigned his position and foreclosed his opportunity to pursue a grievance under the MOU.
We decline to address the mootness issue for several reasons. To begin with, our determination that Priester failed to exhaust his administrative remedies before
cy.‘” (quoting Chesley v. City of Annapolis, 176 Md. App. 413, 427 n.7, 933 A.2d 475 (2007))).
Accordingly, we shall confine our discussion to an analysis of Priester‘s failure to await a final administrative order before seeking judicial review. See Sinochem, 549 U.S. at 431 (Federal courts have “leeway ‘to choose among threshold grounds for denying audience to a case on the merits.‘” (quoting Ruhrgas, 526 U.S. at 584)).
A. Administrative Exhaustion
The County‘s exhaustion argument can be subdivided into two parts. First, that the PSAB has not issued a final decision, and Priester may not seek judicial review until he has received a final administrative decision. Second, without a final decision, Priester has not exhausted his statutorily prescribed administrative remedy, also bearing the consequence that he may not seek judicial review until he does. Priester responds that he has taken all necessary steps to obtain a final decision, and that the exhaustion doctrine does not apply to his case under certain recognized exceptions.
1. The Agency‘s Decision Must Be Final
The County argues that, under the basic tenets of finality, the PSAB has yet to issue a final decision because it has not rendered a decision that disposes of the case, adjudicates the parties’ rights, and leaves nothing further for it to decide.
Priester reiterates the position he advanced in the circuit court: that by requesting and participating in the de novo appeal before PSAB, he has done all that was required for him to exhaust his administrative remedies. In other words, Priester believes that it is of no consequence that the PSAB did not issue a decision at the hearing‘s conclusion because he took all the steps required of him personally.
When a legislature provides an administrative remedy as the exclusive or primary means by which an aggrieved party may challenge a government action, the doctrine of administrative exhaustion requires the aggrievеd party to exhaust the prescribed process of administrative remedies before seeking “any other” remedy or “invok[ing] the ordinary jurisdiction of the courts.” Soley v. State Comm‘n on Human Relations, 277 Md. 521, 526, 356 A.2d 254 (1976) (emphasis added).12 The Court in Soley explained that the exhaustion rule is based, in part, on the “discretionary nature” of agency decisions and the “expertise” that “the agency can bring to bear in sifting the information presented.” Id.
The rule of finality overlaps the rule of exhaustion. Renaissance Centro, 421 Md. at 485. “[A] party must exhaust the administrative remedy and obtain a final administrative decision . . . before resorting to the courts.” Laurel Racing Ass‘n, Inc. v. Video Lottery Facility Location Comm‘n, 409 Md. 445, 460, 975 A.2d 894 (2009) (emphasis added). The stage of the administrative review process from which the party seeks judicial review is where the main distinction between the doctrine of finality and the doctrine of exhaustion is revealed. Exhaustion requires a grievant to invoke and pursue the administrative process until he or she receives a final decision from the agency at the utmost level of the administrative hierarchy. For instance, Priester could not have sought judicial review of the ALJ‘s decision—even though that decision was final—without first invoking the statutorily prescribed de novo appeal to the PSAB. Finality, on the other hand, refers to the quality of decision by the agency atop the hierarchy—meaning that Priester cannot
The rule of finality limits judicial intervention during the administrative process to promote the efficiency that the legislature attempted to achieve through the administrative process, and relieves courts of the need “to decide issues which perhaps would never arise if the prescribed administrative remedies were followed.” Soley, 277 Md. at 526. In this way, the administrative exhaustion doctrine is “a policy embodied in various enactments of the General Assembly.” Maryland Comm‘n on Human Relations v. Baltimore Gas & Elec. Co., 296 Md. 46, 51, 459 A.2d 205 (1983). By vesting authority in administrative agencies, the legislature signals its belief that the agencies’ expertise on those issues exceeds that of the courts. This principle was expressed in Maryland-National Capital Park & Planning Commission v. Washington National Arena, when the Court of Appeals examined the statutory provisions delineating the authority of the Maryland Tax Court, and observed:
Presumably, in enacting such an intricate and comprehensive mechanism for the review of property tax determinations, the General Assembly sought to afford the taxpaying public a systematic and efficient method of fact-finding and policy-formation in an area where many of the day-to-day problems of administration either lie beyond the conventional competence of the courts because of the technical complexity of the subject matter or, because of their routine nature, are not properly suited for resolution in formal adjudicatory prоceedings.
282 Md. 588, 597-98, 386 A.2d 1216 (1978).
Even when a petitioner alleges that the administrative agency is acting ultra vires or illegally, a petitioner cannot seek judicial review of an interlocutory decision by that agency unless an interlocutory appeal is authorized by statute. See Maryland Comm‘n on Human Relations v. Mass Transit, 294 Md. 225, 233, 449 A.2d 385 (1982) [hereinafter “MTA“] (“This Court has consistently held that statutorily prescribed administrative and judicial review remedies must be exhausted in cases involving the interpretation of statutory language.“). The petitioner must await a final decision before challenging the agency action in court. Laurel Racing, 409 Md. at 468; Soley, 277 Md. at 528; Intercom Sys. Corp., 135 Md. App. 624, 634, 763 A.2d 1196 (2000).
“[A]n agency order is not final when it is contemplated that there is more for the agency to do.” Kim v. Comptroller, 350 Md. 527, 533-34, 714 A.2d 176 (1998) (citations omitted). Thus, “[t]o be ‘final,’ the order or decision must dispose of the case by deciding all questions of law and fact and leave nothing further for the administrative body to decide.”13 Willis v. Montgomery Cnty., 415 Md. 523, 534, 3 A.3d 448 (2010) (citations omitted); see
The Court of Appeals explained that the purpose of the finality rule is
to avoid piecemeal actions in the circuit court seeking fragmented advisory opinions with respect tо partial or intermediate agency decisions. Not only would a contrary rule create the real prospect of unnecessary litigation, as a party choosing to seek review of an unfavorable interlocutory order might well, if the party waited to the end, be satisfied with the final administrative decision, but the wholesale exercise of judicial authority over intermediate and partial decisions could raise serious separation of powers concerns.
Driggs Corp. v. Maryland Aviation Admin., 348 Md. 389, 407-08, 704 A.2d 433 (1998).
Renaissance Centro is most analogous and instructive to the current appeal. 421 Md. 474, 27 A.3d 143 (2011). In Renaissance Centro, Mr. Broida (and several other opponents) appealed the county planning board‘s approval of a site development plan to a county hearing examiner, who dismissed the appeal after determining that the opponents lacked standing because they were not specially aggrieved. 421 Md. at 477-78. The opponents then filed an appeal under
The Board of Appeals conducted a hearing with only four of its five members (due to illness, one member could not participate), and without objection from any party. Id. After the Board‘s unanimous decision that three of the opponents did not have standing, the Board took a “straw vote” as to whether Mr. Broida had standing, which resulted in a 2-2 tie. Id. at 478-79. After deliberating in closed session about what to do, the board “announced that it would not then decide Broida‘s standing and that, upоn their confirmation, [] two new [Board] members would listen to the tape recording of the four-day hearing and would review the record. The new Board would . . . reconvene, deliberate, and vote on Broida‘s standing to appeal the Board.” Id. at 479. Renaissance sought a declaratory judgment in circuit court, arguing “that, because of the 2 to 2 vote, Broida‘s appeal to the Board of Appeals must be dismissed, that both Maryland Law and the Howard County Code require dismissal of Broida‘s appeal, that it would be improper for the Board to redeliberate and re-vote, and that it would be improper for the new members to vote.” Id. at 480 (internal quotations and brackets omitted). This Court concluded that the straw vote constituted a final decision and considered the merits of the action. Id. at 482.
The Court of Appeals granted certiorari and reversed, finding it “obvious that the Board of Appeals’ 2 to 2 ‘straw vote’ was not a final administrative decision in light of the Board‘s planned action to convene later and re-vote.” Id. at 490-91 (citation omitted). The Court remanded the case with instructions to dismiss the declaratory judgment action, “[b]ecause there was no final administrative decision, both the Circuit Court and the Court of Special Appeals erred in reaching the merits
634 (2015) (hereinafter Hovnanian II] (reaffirming that Renaissance Centro, 421 Md. at 491, 27 A.3d 143, held that Renaissance “failed to exhaust administrative remedies and await a final administrative decision” (emphasis added)).
Here, Fire Chief Hohman‘s April 30 letter to Priester notified him that he had two options by which he could challenge his termination; Priester chose the MOU‘s five-step grievance process that concludes with a hearing before the PSAB. The Baltimore County Charter provides that “[i]n the case of appeal” the PSAB has exclusive jurisdiction and “its decision shall be final on all parties concerned.”
Priester‘s complaint that the Board‘s decision to re-vote was improper and unsupported by its enabling statute is not ripe for judicial review, just as in Renaissance Centro, until “after the rendering of a final administrative decision.” Id. at 490, 27 A.3d 143 (emphasis in original) (citations omitted). The rule of finality keeps the judiciary from deciding issues that “perhaps would never arise if the prescribed administrative remedies were followed.” Soley, 277 Md. at 526, 356 A.2d 254.
Contrary to Priester‘s contention, the de novo posture of the PSAB hearing does not change this result. Priester directs us to a series of cases in which courts found that a tied final vote must be decided against the party that carried the burden of proof. See, e.g., Forks of the Patuxent Improvement Ass‘n, Inc. v. Nat‘l Waste Managers/Chesapeake Terrace, 230 Md. App. 349, 356, 148 A.3d 36 (2016) (examining the distinction between a de novo appellate hearing and an appellate body conducting de novo review of the law while
Priester‘s complaint before the circuit court concedes the lack of finality. Priester‘s entire legal argument—from his allegation that the Board violated its statutory mandate by not issuing a final decision, to his “clear and indisputable right” to have the Board issue that decision—admits that there was no final administrative order below. Rather than wait and file an action in the circuit court for judicial review of the agency‘s final decision, Priester filed writs of mandamus in which, among the other relief requested, he asked the court to order the PSAB to issue a final decision. To the extent Priester argues the 2-2 vote constituted a final decision, he cannot have his proverbial cake and eat it, too.
If Priester wishes to challenge the legitimacy of the PSAB‘s procedures, he must wait until after the Board issues a final order, unless an exception to the exhaustion doctrine applies. See
2. Exceptions to Exhaustion
The exhaustion doctrine fulfills the legislature‘s intent of delegating a matter to an agency for initial review and decision, promotes the policy of allowing agencies to exercise their expertise, and furthers judicial economy by limiting the number of appeals before the court, allowing the administrative process to narrow the scope of those issues that do eventually warrant judicial reviеw. Soley, 277 Md. at 526, 356 A.2d 254; Rochvarg, supra, at 193. Priester‘s opening contention is that dismissing his appeal would not further the aims of the exhaustion doctrine because his administrative appeal is too far along in the administrative process. This argument does not correspond to any of the recognized exceptions to the exhaustion doctrine and is without merit.
In 1980, the Court of Appeals decided Blumberg, in which the Court compiled a list of five exceptions to the exhaustion doctrine derived from Maryland cases decided over the previous 40 to 50 years.16 Prince George‘s Cnty. v. Blumberg, 288 Md. 275, 283-85, 418 A.2d 1155 (1980). Priester invokes by name the unauthorized procedure exception, and makes three additional arguments that fit within the balance of the Blumberg exceptions. We recast these arguments systematically under the applicable legal framework as: 1) the PSAB failed to adopt written rules of procedure; 2) the PSAB lacks the statutory authority to rehear his grievance; 3) the PSAB violated his constitutional right to due process and fundamental fairness through its lack of written procedures, its ad hoc decision making, and George Gay‘s dual role as Director of Human Resources and Secretary to the Board; and 4) the PSAB will not provide him an adequate remedy.
Over the years since Blumberg, the Court‘s clarifications and interpretations have pared down each exception‘s scope and corresponding availability to litigants. Through these decisions, the Court of Appeals has displayed a strong рreference for administrative exhaustion.
a. The Unauthorized Procedure Exception—On Life Support
Priester claims he is not required to exhaust the exclusive administrative remedy afforded his grievance under the
We note, ... th[e] exception is dicta in Blumberg, and is supported by the citation of only one case, Stark v. State Bd. of Registration. Moreover, in Soley v. State of Maryland Comm‘n on Human Relations, this Court expressly disavowed the dicta appearing in Stark, stating that it had been “deprived of any vitality it may have possessed by the subsequent adoption of the Administrative Procedure Act[.]”
Id. at 594, n.10 (internal citations omitted).
The Court of Appeals recently put another stake in the heart of the unauthorized procedure exception in Hovnanian II, 443 Md. at 219, 115 A.3d 634. In Hovnanian II, a developer applied for a wetlands license, an application process that “typically begins with a review by the Maryland Department of the Environment (“the Department” []), and terminates with the Board[of Public Works‘] decision following receipt of a report and recommendation from the Department.” Id. at 205, 115 A.3d 634. After six years of administrative and judicial challenges to the board‘s denial of Hovnanian‘s application, the developer submitted to the board a revised application that incorporated the Department‘s recommendations. Id. at 206-09, 115 A.3d 634. Months later, the board disclosed to Hovnanian that the Wetlands Administrator, who had testified on behalf of the State, had a potential conflict of interest and the board would delay further proceedings until it could cure the record of any “еthical taint.” Id. at 212, 115 A.3d 634. Hovnanian objected to the board‘s proposal and asked the board to schedule a vote on the application based on the existing administrative record. Id. at 213, 115 A.3d 634. When the board responded that it would not change its course, Hovnanian filed a complaint for declaratory and injunctive relief in the circuit court, seeking “to compel the board to review Hovnanian‘s revised application and to vote on the application based on the existing administrative record without further delay.” Id. Hovnanian argued that under the unauthorized procedure exception, Hovnanian was not required to exhaust administrative remedies before filing its complaint in court. Id. The circuit court granted summary judgment in favor of Hovnanian, concluding that the board “acted beyond its authority by deferring its vote on Hovnanian‘s application, and that any further attempt by Hovnanian to advance its application would be ‘an exercise in futility.‘” Id. at 213-14, 115 A.3d 634.
Before the Court of Appeals, the board argued that Hovnanian‘s action was “premature and improper for two reasons: first, Hovnanian failed to await a final administrative decision, and, second, mandamus does not lie under these circumstances.” Id. at 215, 115 A.3d 634. Hovnanian responded that although the Court had disavowed the unauthorized procedure exception in Bethlehem Steel, the progeny of cases cited by the Court all concerned proceedings under the
Priester asks this Court to apply the enfeebled “unauthorized procedure” exception in his case. He argues that the PSAB‘s 2-2 vote was a final decision and that the PSAB is requiring him to “follow the unauthorized procedure of a re-hearing without statutory authorization and contrary to past practice.” As the Court of Appeals made clear in Hovnanian II, however, a board‘s “decision to hold a re-vote [i]s not a final administrative decision[,]” and an action for mandamus or declaratory relief will not lie until the petitioner exhausts its remedies and awaits a final administrative decision. Id. at 222, 115 A.3d 634. We conclude the Court of Appeals has disavowed the exception repeatedly, id. at 219, 222, 115 A.3d 634, and Priester cannot avail himself of it here.17 Priester cannot evade the requiremеnt to exhaust his administrative remedies under the unauthorized procedure exception.
b. The Jurisdictional Exception(s)
In 1989, the Court of Appeals explained that the “first and the fifth” exceptions listed in Blumberg—the two jurisdictional exceptions—“are essentially the same thing, namely where, as a matter of legislative intent, the agency‘s jurisdiction is not primary.” McCullough v. Wittner, 314 Md. 602, 607 n.3, 552 A.2d 881 (1989).18
Short of an express statutory grant, “the relationship between [an] administrative remedy and a possible alternative judicial remedy will ordinarily fall into one of three categories.” Zappone v. Liberty Life Ins. Co., 349 Md. 45, 60, 706 A.2d 1060 (1998). An administrative remedy may be: (1) “‘exclusive, thus precluding any resort to an alternative remedy[;]‘” (2) “‘primary but not exclusive[,]” in which case “a claimant must invoke and exhaust the administrative remedy[;]” or (3) “‘fully concurrent, with neither remedy being primary,‘” in which case “the plaintiff at his or her option may pursue the judicial remedy without the necessity of invoking and exhausting the administrative remedy.” Prince George‘s Cnty. v. Ray‘s Used Cars, 398 Md. 632, 644-45, 922 A.2d 495 (2007) (quoting Zappone, 349 Md. at 60-61, 706 A.2d 1060 (emphasis in Ray‘s Used Cars)); see also Monarch Acad. Baltimore Campus, Inc., et al. v. Baltimore City Bd. of School Comm‘rs, 231 Md. App. 594, 153 A.3d 859, 869 (2017)
The jurisdictional exception only applies when an agency is engaged in an action “palpably” outside the sсope of the class of claims it is authorized to decide. Heery Int‘l, Inc. v. Montgomery Cnty., 384 Md. 129, 138, 143-44, 862 A.2d 976 (2004). Therefore, in order to invoke the “palpably without jurisdiction” standard, a party must demonstrate that an agency is “operating indisputably beyond its authority, and distinctly outside its fundamental jurisdiction.” Id. at 145, 862 A.2d 976. See also State v. Maryland State Bd. of Contract Appeals, 364 Md. 446, 457-58, 773 A.2d 504 (2001) (holding that the State Board of Contract Appeals was “obvious[ly]” not “palpably without jurisdiction,” because disputes involving procurement contracts were just the type of disputes the board was authorized to determine initially); Montgomery Cnty. v. Ward, 331 Md. 521, 529, 629 A.2d 619 (1993) (finding that a workers’ compensation commission was not palpably without jurisdiction to reconsider its own denial of a prior motion to reconsider because the commission was tasked with deciding workers’ compensation matters); Bethlehem Steel, 295 Md. at 595, 457 A.2d 1146 (holding that, because the Maryland Commission on Human Relations “concededly ha[d] jurisdiction over cases of employment discrimination based on age, there [wa]s no jurisdictional question” implicated in the agency‘s interpretation of its own rules governing its authority to rehear appeals).
The standard was first recognized in Maryland in MTA, supra, 294 Md. at 235, 449 A.2d 385 (stating “[i]t may well be that exhaustion of administrative remedies is not required where an ‘agency is palpably without jurisdiction[,]” and citing Davis, Administrative Law Treatise (1958), Ch. 20, § 20.01, p. 56). In MTA, three women filed discrimination complaints with the Maryland Commission on Human Relations alleging they were denied employment by the MTA because they were overweight. Id. at 227, 449 A.2d 385. Following an investigation, the Commission‘s staff issued findings оf probable cause to believe that the MTA had engaged in discrimination based on physical handicaps in violation of
The Court of Appeals reversed on the ground that that MTA had failed to exhaust
This Court has consistently held that statutorily prescribed administrative and judicial review remedies must be exhausted in cases involving the interpretation of statutory language. Moreover, to hold that the existence of a statutory interpretation issue furnishes an excuse to abort the administrative proceedings before a final agency decision, would also be inconsistent with the principle that the agency‘s construction of a statute which it administers is entitled to weight.
The MTA in the present case has couched the statutory interpretation issue in terms of the Commission‘s “authority” or “power” or “jurisdiction,” and has charged that the Commission is attempting to “expand” its jurisdiction and proceed in an unauthorized manner. Nevertheless, many, if not most, statutory interpretation issues arising in administrative proceedings could be phrased in terms of the agency‘s “authority,” “power” or “jurisdiction” to take a certain type of action in a specific case. A party‘s argument that an agency will be exceeding its authority if it ultimately interprets the statute and decides the case contrary to that party‘s position, does not excuse the failure to await a final agency decision
Id. 232-233, 449 A.2d 385.
The Court of Appeals applied this standard in Laurel Racing, supra, 409 Md. at 463-64, 975 A.2d 894. In Laurel Racing, the Court considered whether the State Board of Contract Appeals had statutory jurisdiction over an appeal of the Video Lottery Facility Location Committee‘s denial of an applicant‘s bid for a video lottery license. Id. at 451-55, 975 A.2d 894. The statute governing video lottery licensing bids set out that the exclusive statutory remedy available to an unsuccessful bidder was to the State Board of Contract Appeals. Id. at 451, 975 A.2d 894. Yet after the Video Lottery Facility Location Committee rejected Laurel Racing‘s bid based on the company‘s failure to submit its initial licensing fee, Laurel Racing sought declaratory and injunctive relief in the circuit court. Id. at 454, 975 A.2d 894. The State filed a motion to dismiss the action, arguing that the Board of Contract Appeals had exclusive or primary jurisdiction over an unsuccessful applicant‘s complaint, and that Laurel Racing had failed to exhaust its administrative remedies. Id. at 454-55, 975 A.2d 894. The circuit court rejected the State‘s argument, finding that the Board of Contract Appeals did not have jurisdiction over disputes that arose prior to the committee‘s award of a video lottery license. Id. at 455-56, 975 A.2d 894. The Court of Appeals granted certiorari and reversed, reasoning that “there [wa]s no issue ... concerning the Board of Contract Appeals’ subject-matter jurisdiction[,]” and that the statute governing video lottery licensing provided expressly “that the recourse of an unsuccessful applicant for a video lottery operation license is reviewed by the State Board of Contract Appeals.” Id. at 463-64, 773 A.2d 504 (internal quotations omitted). The Court held that the board, therefore, had exclusive jurisdiction over the appeal and Laurel Racing must exhaust its administrative remedies before resorting tо the courts. Id. at 464, 975 A.2d 894.
In one case, decided more recently, the Court of Appeals reached the opposite result and determined that the petitioners were not required to exhaust administrative remedies because the Maryland State Board of Contract Appeals was without jurisdiction over their claims. State Ctr., LLC v. Lexington Charles Ltd. P‘ship, 438 Md. 451, 515, 92 A.3d 400 (2014). In State Center, a group of property owners and taxpayers filed an action in circuit court seeking declaratory and injunctive relief against two state agencies and a development project, arguing that a series of development contracts between the defendants violated Maryland procurement law. Id. at 474, 92 A.3d 400. The defendants argued that the petitioners’ claims fell within the exclusive jurisdiction of the State Board of Contract Appeals and that petitioners failed to exhaust their administrative remedies before seeking judicial review. Id. at 508, 92 A.3d 400. The circuit court voided the development contracts and the defendants appealed. Id. at 474, 92 A.3d 400.
The Court of Appeals looked to the board‘s statutory authority and considered whether two issues excluded the petitioners’ claims from the board‘s jurisdiction: whether the contract at issue was a procurement contract, and whether the petitioners qualified as bidders or offerors under the applicable procurement statute. Id. at 512-15, 92 A.3d 400. The Court concluded that the first issue was “reasonably debatable,” and thus, the board was not palpably without jurisdiction to consider whether the contracts at issue were procurement contracts. Id. at 512, 92 A.3d 400. However, the Court determined that the petitioners “(as a group or individually) were ineligible to submit a response to the RFQ seeking to be selected as Master Developer[,]” because they did not qualify as ““a bidder or offeror, a prospective bidder or offeror, a unit or contractor.‘” Id. at 515, 92 A.3d 400. The Court then concluded that the board was “palpably without jurisdiction” over their claims advanced in the litigation. Id.
Returning to the case at bar, we begin by noting that the
Priester maintains that the PSAB‘s governing statute does not provide the Board with authority to rehear a grievant‘s appeal. Priester does not contest that the PSAB has exclusive subject matter jurisdiction over the type of grievаnce he presents. See Laurel Racing, 409 Md. at 463-64, 975 A.2d 894 (holding that a petitioner must exhaust its administrative remedies when the legislature grants exclusive subject matter jurisdiction to an administrative agency). Instead, he insists that the PSAB‘s governing statute does not grant it authority to re-hear a grievance. The foregoing cases establish, however, that an agency‘s jurisdiction includes the authority to interpret its own rules governing its authority to rehear such appeals. See Ward, 331 Md. at 529, 629 A.2d 619; Bethlehem Steel, 295 Md. at 595, 457 A.2d 1146. Accordingly, we reject Priester‘s contention that the PSAB is without jurisdiction to rehear his grievance.
c. The Constitutional Exception
Continuing in its trend of narrowing the Blumberg exceptions, the Court of Appeals has “significantly limited the scope” of the constitutional exception. See Montgomery Cnty. v. Broadcast Equities, Inc., 360 Md. 438, 455, 758 A.2d 995 (2000) (describing the exception as a “limited”
For one, the constitutional exception does not apply when the legislature intended the administrative remedy to be exclusive and there is no relief available alternative to the statutorily prеscribed administrative remedy and subsequent judicial review. Ray‘s Used Cars, 398 Md. at 653, 922 A.2d 495 (citing Broadcast Equities, 360 Md. at 456-57, 758 A.2d 995). Additionally, a facial constitutional challenge will not stand if it ultimately requires a factual exploration, such as “when statutory classifications are challenged on equal protection grounds or under Article 46 of the Maryland Declaration of Rights.” Broadcast Equities, 360 Md. at 457, 758 A.2d 995 (citing Ins. Comm‘r v. Equitable Life Assurance Soc., 339 Md. 596, 623-24, 664 A.2d 862 (1995). The exception to exhaustion is further constrained by the doctrine of constitutional avoidance. Pursuant to the doctrine, the judiciary will not consider a facial challenge to an administrative agency‘s authority if the agency may possibly afford the petitioner relief on non-constitutional grounds without impacting the petitioner‘s constitutional rights, “thus making unnecessary a ruling on the constitutional issue.” Ray‘s Used Cars, 398 Md. at 653, 922 A.2d 495 (citing Broadcast Equities, 360 Md. at 461, 758 A.2d 995). Similarly, the exception does not apply “when the judicial decision on the facial validity of an enactment is not likely to terminate the controversy.” Ray‘s Used Cars, 398 Md. at 654, 922 A.2d 495 (citing Broadcast Equities, 360 Md. at 461-62, 758 A.2d 995); but see Ehrlich v. Perez, 394 Md. 691, 700, n.6, 908 A.2d 1220 (2006) (holding that even though the plaintiffs had failed to take an administrative appeal, the suit was permitted when “the ‘constitutional exception’ to the general rule applie[d]... where the sole contention raised in the court action is based on a facial attack on the constitutionality of the governmental action.” (emphasis added) (internal citations omitted)).
Recently, the Court of Appeals applied these principles in United Ins. Co. of Am. v. Maryland Ins. Admin., et al., and held that the petitioners had asserted an “as applied” constitutional challenge that did not meet the requisitеs of the constitutional exception to the exhaustion doctrine. 450 Md. 1, 36-37, 144 A.3d 1230 (2016). The petitioners (various insurance companies) filed a declaratory judgment action in the circuit court against the Maryland Insurance Administration (“MIA“) and the Insurance Commissioner contending, as grounds for relief, that the anticipated retroactive application of a new statute violated their substantive contract rights as well as various provisions of the Maryland Declaration of Rights, the Maryland Constitution, and the United States Constitution. Id. at 12, 144 A.3d 1230. The petitioners claimed the constitutional exception permitted their court action without having to exhaust administrative remedies before the MIA because they advanced a “direct attack” on the General Assembly‘s power and authority to pass legislation that retroactively impaired their vested contract
In sum, when an agency‘s jurisdiction is non-exclusive, a grievant may avoid exhaustion by asserting before the judiciary a facial constitutional challenge to the governing statute, so long as the challenge poses a pure question of law, the answer to which must be reached and must dispose of the entire controversy.
Although among his contentions on appeal, Priester asserts constitutional due process challenges—one concerning the George Gay‘s dual role as the County Director of Human Resources and Secretary of PSAB, and the other, the Board‘s lack of written procedures—he presents fact-specific, as-applied claims that do not qualify for the constitutional exception. Moreover, the constitutional exception is ordinarily not available in cases where the administrative agency is conferred exclusive jurisdiction over the appeal. See Ray‘s Used Cars, 398 Md. at 650-53, 922 A.2d 495. Accordingly, Priester‘s case does not qualify under the constitutional exception to the exhaustion doctrine because: 1) an appeal to PSAB was Priester‘s exclusive remedy from the ALJ‘s decision under the applicable provisions of the
d. The Inadequate Remedy Exception
Finally, as mentioned supra in note 17, in support of his argument that the exhaustion doctrine does not apply, Priester relies on this Court‘s decision in Coroneos, which examined the exception that can be categorized more aptly as when an agency cannot or will not provide an adequate remedy. The rationale for the exception expressed in Coroneos, supra, 161 Md. App. at 421, 428-29, 869 A.2d 410, finds its origins in one of the first cases to apply the inadequate remedy exception, Board of Commissioners of Anne Arundel County v. Buch, 190 Md. 394, 396, 58 A.2d 672 (1948).
Mr. Buch, a taxpayer, had petitioned his county commissioners for a hearing, but they refused to grant him one, stating that he had no basis for a hearing. Id. at 396, 58 A.2d 672. Following the commissioners’ refusal to grant him a hearing, Buch petitioned the circuit court, asking the court to order the commissioners to grant him a hearing. Id. The county argued that Buch‘s only remedy was to appeal to the State Tax Commission—not to seek judicial review in the circuit court. Id. at 402, 58 A.2d 672. The circuit court granted Buch‘s writ of mandamus, and the commissioners appealed to the Court of Appeals. Id. at 396, 58 A.2d 672. The Court of Appeals affirmed, reasoning that the commissioners’ refusal to grant the taxpayer a hearing caused there to be no decision over which the State Tаx Commission
Similarly, in Coroneos, 161 Md. App. at 428-29, 869 A.2d 410, the agency refused to recognize the petitioner‘s administrative remedy and would not grant the petitioner a hearing, leaving the petitioner without a remedy other than judicial intervention. Id. There, a reptile owner petitioned the county Animal Matters Hearing Board, challenging the animal safety department‘s decision to confiscate some 1,500 animals—including venomous snakes and lizards. Id. at 416, 869 A.2d 410. The petitioner also requested that the board waive the cost of boarding the animals pending appeal (estimated by the board to be $45,390 per month). Id. at 416-17, 869 A.2d 410. The board acknowledged the petitioner‘s waiver request and sought his financial records to prove that the boarding fee would cause him financial hardship. Id. at 417, 869 A.2d 410. After the petitioner provided tax returns showing a gross annual income of around $47,000, the board denied his waiver request. Id. at 418, 869 A.2d 410. The petitioner attempted unsuccessfully to convince the board to reconsider its denial of his waiver, before he then petitioned the circuit court for declaratory and injunctive relief. Id. at 418-20, 869 A.2d 410. The circuit court granted the board‘s motion for summаry judgment, finding that the petitioner waived his right to appeal when he failed to cover the cost of the animals’ care (or post a bond, or arrange for alternative care as also allowed by the statute). Id. at 422, 869 A.2d 410. The petitioner appealed to this Court and we reversed.
We began by examining the statutory requirement that animal owners must cover the cost of care, post a bond, or arrange adequate alternative care, and determined that these obligations applied in matters involving appeals from the board‘s decisions, and not to appeals to the board from department decisions. Id. at 427, 869 A.2d 410. We concluded that the exhaustion doctrine was inapplicable where, as in Buch, the lack of a remedy created by the board‘s refusal to consider the appeal was
We determine the holding in Coroneos is not applicable to this case. The PSAB has made clear to Priester its plans to schedule a hearing—albeit a rehearing—of his grievance. There is no indication in the record, nor does Priester allege, that the PSAB refused to provide him a hearing and “treated [his] case as if [he] hаd no administrative remedy available.” See Coroneos, 161 Md. App. at 428-29, 869 A.2d 410. We hold that Priester cannot avoid the exhaustion doctrine because he has failed to demonstrate that no adequate remedy is available.
3. Mandamus
The Court of Appeals’ analysis in Hovnanian II is instructive in further understanding why mandamus will not lie in these circumstances. Priester argues that mandamus is appropriate because the PSAB violated its statutory duty to issue “a final and binding decision” in his grievance “as soon as possible.”
The petitioner in Hovnanian II, supra, also sought judicial review in a non-
The same is true here. Priester hаs neither suggested nor demonstrated that the PSAB has deliberately delayed his rehearing or that the delay prior to his mandamus action was unduly long. Once the Board rehears his grievance and issues its final decision, Priester will still retain the adequate remedy of judicial review at that time. Consequently, mandamus is inappropriate under the current circumstances. See Hovnanian II, 443 Md. at 224, 115 A.3d 634; Barson v. Maryland Bd. of Physicians, 211 Md. App. 602, 618, 66 A.3d 50 (2013).
CONCLUSION
In conclusion, it is clear that Priester‘s grievance—a challenge to a county employment termination—is within the
We hold that because the Board has not yet issued a final order and plans to rehear the appeal, Priester has not exhausted his administrative remedies, and received a final administrative decision. His action, therefore, was not properly before the circuit court and the court should have dismissed his petition without considering the merits.
JUDGMENT OF THE CIRCUIT COURT FOR BALTIMORE COUNTY REVERSED. CASE REMANDED TO THAT COURT WITH INSTRUCTIONS TO DISMISS THE ACTION. APPELLANT TO PAY THE COSTS.
157 A.3d 325
Robert DICICCO, et al.
v.
BALTIMORE COUNTY, Maryland
No. 2147, Sept. Term, 2015
Court of Special Appeals of Maryland.
March 29, 2017
Notes
The Larrick Order contained the following statement: “Past practice of the [PSAB] in the highly irregular instance of a stalemate, a situation that has not arisen during the tenure of any of the current Board members or current counsel, is to revert to the lower ruling, a practice confirmed by past counsel to the Board and the Board‘s Secretary.” The draft Priester Order took a similar approach to the tie vote. I am confident that past counsel and the Secretary accurately conveyed the history of this Board. . . .
Nevertheless, I have asked the PSAB‘s Secretary to set the Larrick and Priester matters in for new hearings before the PSAB as soon as possible given the schedule of hearings currently established.
- When the legislative body has indicated an intention that exhaustion of administrative remedies was not a precondition to the institution of normal judicial action. White v. Prince George‘s Co., 282 Md. 641, 649, 387 A.2d 260, 265 (1978).
- When there is a direct attack, constitutional or otherwise, upon the power or authority (including whether it was validly enacted) of the legislative body to pass the legislation from which relief is sought, as contrasted with a constitutional or other type issue that goes to the application of a general statute to a particular situation. Harbor Island Marina v. Calvert Co., 286 Md. 303, 308, 407 A.2d 738, 741 (1979).
- When an agency requires a party to follow, in a manner and to a degree that is significant, an unauthorized procedure. Stark v. Board of Registration, 179 Md. 276, 284-85, 19 A.2d 716, 720 (1941).
- Where the administrative agency cannot provide to any substantial degree a rеmedy. Poe v. Baltimore City, 241 Md. 303, 308-09, 216 A.2d 707, 709 (1966).
- When the object of, as well as the issues presented by, a judicial proceeding only tangentially or incidentally concern matters which the administrative agency was legislatively created to solve, and do not, in any meaningful way, call for or involve applications of its expertise. Md.-Nat‘l Cap. P. & P. v. Wash. Nat‘l Arena, 282 Md. 588, 594-604, 386 A.2d 1216, 1222–27 (1978).
