Dioguardi v. Superior Court

909 P.2d 481, 184 Ariz. 414
CourtCourt of Appeals of Arizona
DecidedJanuary 17, 1996
Docket1 CA-SA 95-0064
StatusPublished
Cited by18 cases

This text of 909 P.2d 481 (Dioguardi v. Superior Court) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dioguardi v. Superior Court, 909 P.2d 481, 184 Ariz. 414 (Ark. Ct. App. 1996).

Opinions

OPINION

FIDEL, Judge.

This special action concerns the validity of an administrative procedural rule of BO-MEX—the Arizona Board of Medical Examiners—requiring motions for rehearing to be filed within ten days. We hold that the rule violates BOMEX’s statutory mandate to draw its rehearing procedures “as closely as practicable from rule 59, Arizona rules of civil procedure.” See Arizona Revised Statutes Annotated (“AR.S.”) § 41-1062(B); Ariz.R.Civ.P. 59,16 A.R.S.

I.

Petitioner Jeremía Dioguardi, M.D., had engaged in the general practice of medicine in Arizona for thirty-nine years before undergoing administrative proceedings before BO-MEX in 1993 and 1994. At the close of the first stage of proceedings, BOMEX placed Dioguardi on probation, finding that he had engaged in unprofessional conduct by permit[416]*416ting unlicensed members of his staff to treat and prescribe medicine for patients and by maintaining inadequate patient records. As a condition of probation, BOMEX required Dioguardi to take and pass the Special Purpose Examination (“SPEX”)—a standardized examination that tests the medical competence of practicing medical doctors.

By the conclusion of an extended probationary period, Dioguardi had taken the examination on four occasions without achieving a passing score. In August 1994, a BOMEX hearing officer conducted an evidentiary hearing, found that Dioguardi had violated his probation by not passing the SPEX, and recommended revocation of his license. In October 1994, the BOMEX board adopted the hearing officer’s findings and recommendations. BOMEX mailed its findings of fact and conclusions of law to Dioguardi on October 18, but neglected to include a final order of revocation. BO-MEX mailed a corrected notice, which included an order of revocation, on October 19, 1994.

On November 3, the fifteenth day after BOMEX mailed the corrected notice, Dioguardi moved for rehearing and requested a stay. On November 4, Mark R. Speicher, the executive director of BOMEX, informed Dioguardi’s counsel that BOMEX would not stay the revocation because Dioguardi had not moved for rehearing within the ten-day period permitted by BOMEX administrative rules.1 Speicher explained that the BOMEX board would meet in January to decide, as a matter of discretion, whether to waive the ten-day filing deadline, grant Dioguardi’s request for a stay, and consider the merits of his motion. In the interim, the revocation order would stand.

That day, November 4, Dioguardi filed a complaint in the superior court, seeking review of BOMEX’s decision and a stay of revocation pending review. The superior court granted the stay but deferred addressing the merits until BOMEX had decided whether to consider Dioguardi’s motion for rehearing. In January BOMEX met and declined to waive the ten-day rule; it then moved in the superior court for dismissal of Dioguardi’s complaint on the ground that he had not exhausted administrative remedies.

The trial court granted BOMEX’s motion, and Dioguardi filed both a notice of appeal and this special action. We accepted special action jurisdiction because of the merit of Dioguardi’s position, because the invalidity of BOMEX’s rule is a matter of statewide importance, and because the need for speedy resolution precluded adequate remedy by appeal. In a contemporaneous order we granted relief, indicating that this opinion would follow.

II.

The trial court mistakenly concluded, pursuant to A.R.S. § 12-902(B), that Dioguardi’s failure to file a timely request for rehearing placed the BOMEX decision beyond judicial review. A.R.S. § 12-902(B) provides:

Unless review is sought of an administrative decision within the time and in the manner provided in this article, the parties to the proceeding before the administrative agency shall be barred from obtaining judicial review of such decision. If under the terms of the law governing procedure before an agency an administrative decision has become final because of failure to file any document in the nature of an objection, protest, petition for hearing or application for administrative review within the time allowed by the law, the decision shall not be subject to judicial review under the provisions of this article except for the purpose of questioning the jurisdiction of the administrative agency over the person or subject matter.

[417]*417To reach its jurisdictional conclusion, the trial court erroneously assumed the answer to the very question before it—the validity of the BOMEX ten-day rule. Only if BOMEX had validly adopted and applied its ten-day rule would Dioguardi have failed to exhaust his administrative remedies. The question before the court was whether the ten-day rule itself complied with “the terms of the [statutory] law governing procedure before an agency.” A.R.S. § 12-902(B). That question was firmly within the trial court’s jurisdiction, as it is within our jurisdiction on review.

III.

BOMEX has statutory authority to adopt “rules regarding the regulation and the qualifications of doctors of medicine” in Arizona. A.R.S. § 32-1403(A)(8). Those rules, however, must conform to the requirements of the Administrative Procedure Act, A.R.S. title 41, chapter 6. See A.R.S. § 32-1404(C). Rules relating to hearings and rehearings are governed by A.R.S. § 41-1062. Subsection 41-1062(B) provides:

Except when good cause exists otherwise, the agency shall provide an opportunity for a rehearing or review of the decision of an agency before such decision becomes final. Such rehearing or review shall be governed, by agency rule drawn as closely as practicable from rule 59, Arizona rules of civil procedure, relating to new trial in superior court.

(Emphasis added.)

We are deferential to the rule-making and rule-interpreting expertise of administrative agencies so long as they operate within their statutory charter. See, e.g., Maldonado v. Arizona Dept. of Economic Sec., 182 Ariz. 476, 897 P.2d 1362, 1364 (App. 1994). When the question turns, however, to whether an agency rule conforms to statutory requirements, the question is one of statutory interpretation, which is the subject of de novo judicial review. “[T]he powers and duties of administrative agencies ... are strictly limited by the statute creating them.” Boyce v. City of Scottsdale, 157 Ariz. 265, 267, 756 P.2d 934, 936 (App.1988). An agency rule that “would defeat the legislative purpose is to ‘be frowned upon and stricken down.’ ” Maldonado, 182 Ariz. at 478, 897 P.2d at 1364, (quoting Southwest Lumber Mills v. Employment Sec. Comm’n, 66 Ariz.

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909 P.2d 481, 184 Ariz. 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dioguardi-v-superior-court-arizctapp-1996.