ALMA WILSON, Chief Justice:
Double “LL” Contractors, Inc. (Double “LL”) is an Oklahoma corporation engaged principally in the business of bridge construction. For most of its existence, Double “LL” has been certified as a Disadvantaged Business Enterprise (DBE) as part of a federal program designed to assist business entities owned and operated by members of disadvantaged groups, primarily ethnic minorities and women, that bid for contracts in highway construction projects. The program is administered jointly by the Oklahoma Department of Transportation (ODOT) and the United States Department of Transportation (USDOT). The criteria and procedures of the program are established by federal statutes and by rules and regulations promulgated by USDOT. Certification of business entities as DBEs is the responsibility of ODOT. Once certified, a DBE is open to periodic review by ODOT in order to determine whether certification should be continued. In the event that certification is revoked, the aggrieved party may appeal to USDOT which can either affirm or reverse ODOT’s decision.
In 1991, the Operations Review & Evaluations Division of ODOT conducted an audit of Appellee as a part of a DBE qualifications review and concluded that Double “LL’s” certification should be revoked. ODOT notified Double “LL” that it was to be decertified and that it could request a hearing before a DBE Board as provided for by federal law. Following Double “LL’s” request, three days of oral evidentiary hearings were held in October of 1991 at which Appellee was represented by counsel. On January 14,1992, the Board confirmed the decertification.
After the Board’s decision, Double “LL” sought and received an injunction from the District Court of Muskogee County temporarily restraining ODOT from implementing the decertification. Double “LL” also sought the court’s review of ODOT’s order. ODOT moved for Summary Judgment arguing that the court lacked jurisdiction. The court found that it had jurisdiction, reviewed and
reversed ODOT’s order, and instructed the agency to reinstate Double “LL’s” DBE certification.
The issue before this Court is whether the district court had jurisdiction to review ODOT’s order. We hold that it did not.
Section 318 of the Oklahoma Administrative Procedures Act (OAPA) creates a cause of action for judicial review of administrative actions taken by state agencies.
Judicial review is available to parties who have been aggrieved by the final order of an agency in an individual proceeding. 75 O.S.1991,
§ 818. However, if the process out of which the final order is made is not an individual proceeding or if the order is not final, then a cause of action does not lie and judicial review is improper.
In
Stewart v. Rood,
796 P.2d 321, 326 (Okla.1990)
, we held that the OAPA itself does not serve as an independent grant of jurisdiction for judicial review of the issuance of licenses by state agencies. However, we also held that if an agency is required by a statute other than the OAPA or by constitutional mandate to provide notice and opportunity for trial-type hearings when issuing licenses, then the agency’s action comes within the scope of the OAPA’s provisions concerning individual proceedings and is, thus, subject to judicial review under section 318.
Stewart,
796 P.2d at 327-328. We reasoned that trial-type hearings were equivalent to the process of individual proceedings set forth in Article II of the OAPA.
Stewart,
796 P.2d at 327.
The OAPA defines “license” as follows: “ ‘License’ includes the whole or part of any agency permit, certificate, approval, registration, charter, or similar form of permission required by law.” 75 O.S.1991, § 250.3(3). We have no difficulty ruling that DBE certification operates as the issuance of a license as defined by the OAPA.
No state statute requires opportunity for trial-type hearings in the issuance of a DBE certification by ODOT.
However, the district court, citing
Stewart,
found a constitutional mandate that it reasoned brought the instant case within the scope of the OAPA, thus making itself competent to review ODOT’s order. Double “LL” adopts the court’s reasoning on appeal.
Double “LL” appears to make the following argument. Double “LL” possesses a constitutionally protected property interest in its DBE certification. It cannot be deprived of that interest without due process. The process due is a trial-type hearing. Therefore, ODOT is under a constitutional mandate to give notice and opportunity for a trial-type hearing if it is to revoke Double “LL’s” certification. As a result, under
Stewart,
such a mandate brings ODOT’s action within the scope of OAPA’s provisions concerning individual proceedings and, thus, renders it subject to judicial review.
We need not reach the issue as to whether DBE certification is a property interest protected by due process nor whether the process due is a trial-type hearing because we conclude that the court lacked jurisdiction even if ODOT’s action was taken as part of an individual proceeding.
We conclude that the district court was without jurisdiction for two reasons: First, the order of ODOT was not a final order as required for judicial review by section 318 of the OAPA; and, second, Double “LL’s” resort to the courts violated the common law rule of exhaustion of administrative remedies. While the notions of finality and exhaustion are closely linked, it is helpful to maintain an analytical distinction when discussing them.
The distinction is presently appropriate because the notion of finality relevant to the instant case is tied to statutory language while the notion of exhaustion exists in the common law.
It is evident that ODOT’s decertification of Double “LL” constituted an order as defined by the OAPA.
However, the question arises as to whether the order was final. If the order was not final then judicial review was not appropriate under section 318. Absent specific statutory provisions to the contrary, an order is final under section 318 when the administrative process ends and legal obligations resulting from that process are imposed.
Conoco v. State Dept. of Health,
651 P.2d 125, 127 (Okla.1982).
In order to receive federal highway funds, ODOT is required by the Surface Transportation and Uniform Relocation Assistance Act of 1987 (STURAA)
to implement a DBE set-asides program in the awarding of contracts. All parameters of the DBE program are established by STURAA and by rules and regulations of the United States Department of Transportation (USDOT) as codified at 49 C.F.R.
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ALMA WILSON, Chief Justice:
Double “LL” Contractors, Inc. (Double “LL”) is an Oklahoma corporation engaged principally in the business of bridge construction. For most of its existence, Double “LL” has been certified as a Disadvantaged Business Enterprise (DBE) as part of a federal program designed to assist business entities owned and operated by members of disadvantaged groups, primarily ethnic minorities and women, that bid for contracts in highway construction projects. The program is administered jointly by the Oklahoma Department of Transportation (ODOT) and the United States Department of Transportation (USDOT). The criteria and procedures of the program are established by federal statutes and by rules and regulations promulgated by USDOT. Certification of business entities as DBEs is the responsibility of ODOT. Once certified, a DBE is open to periodic review by ODOT in order to determine whether certification should be continued. In the event that certification is revoked, the aggrieved party may appeal to USDOT which can either affirm or reverse ODOT’s decision.
In 1991, the Operations Review & Evaluations Division of ODOT conducted an audit of Appellee as a part of a DBE qualifications review and concluded that Double “LL’s” certification should be revoked. ODOT notified Double “LL” that it was to be decertified and that it could request a hearing before a DBE Board as provided for by federal law. Following Double “LL’s” request, three days of oral evidentiary hearings were held in October of 1991 at which Appellee was represented by counsel. On January 14,1992, the Board confirmed the decertification.
After the Board’s decision, Double “LL” sought and received an injunction from the District Court of Muskogee County temporarily restraining ODOT from implementing the decertification. Double “LL” also sought the court’s review of ODOT’s order. ODOT moved for Summary Judgment arguing that the court lacked jurisdiction. The court found that it had jurisdiction, reviewed and
reversed ODOT’s order, and instructed the agency to reinstate Double “LL’s” DBE certification.
The issue before this Court is whether the district court had jurisdiction to review ODOT’s order. We hold that it did not.
Section 318 of the Oklahoma Administrative Procedures Act (OAPA) creates a cause of action for judicial review of administrative actions taken by state agencies.
Judicial review is available to parties who have been aggrieved by the final order of an agency in an individual proceeding. 75 O.S.1991,
§ 818. However, if the process out of which the final order is made is not an individual proceeding or if the order is not final, then a cause of action does not lie and judicial review is improper.
In
Stewart v. Rood,
796 P.2d 321, 326 (Okla.1990)
, we held that the OAPA itself does not serve as an independent grant of jurisdiction for judicial review of the issuance of licenses by state agencies. However, we also held that if an agency is required by a statute other than the OAPA or by constitutional mandate to provide notice and opportunity for trial-type hearings when issuing licenses, then the agency’s action comes within the scope of the OAPA’s provisions concerning individual proceedings and is, thus, subject to judicial review under section 318.
Stewart,
796 P.2d at 327-328. We reasoned that trial-type hearings were equivalent to the process of individual proceedings set forth in Article II of the OAPA.
Stewart,
796 P.2d at 327.
The OAPA defines “license” as follows: “ ‘License’ includes the whole or part of any agency permit, certificate, approval, registration, charter, or similar form of permission required by law.” 75 O.S.1991, § 250.3(3). We have no difficulty ruling that DBE certification operates as the issuance of a license as defined by the OAPA.
No state statute requires opportunity for trial-type hearings in the issuance of a DBE certification by ODOT.
However, the district court, citing
Stewart,
found a constitutional mandate that it reasoned brought the instant case within the scope of the OAPA, thus making itself competent to review ODOT’s order. Double “LL” adopts the court’s reasoning on appeal.
Double “LL” appears to make the following argument. Double “LL” possesses a constitutionally protected property interest in its DBE certification. It cannot be deprived of that interest without due process. The process due is a trial-type hearing. Therefore, ODOT is under a constitutional mandate to give notice and opportunity for a trial-type hearing if it is to revoke Double “LL’s” certification. As a result, under
Stewart,
such a mandate brings ODOT’s action within the scope of OAPA’s provisions concerning individual proceedings and, thus, renders it subject to judicial review.
We need not reach the issue as to whether DBE certification is a property interest protected by due process nor whether the process due is a trial-type hearing because we conclude that the court lacked jurisdiction even if ODOT’s action was taken as part of an individual proceeding.
We conclude that the district court was without jurisdiction for two reasons: First, the order of ODOT was not a final order as required for judicial review by section 318 of the OAPA; and, second, Double “LL’s” resort to the courts violated the common law rule of exhaustion of administrative remedies. While the notions of finality and exhaustion are closely linked, it is helpful to maintain an analytical distinction when discussing them.
The distinction is presently appropriate because the notion of finality relevant to the instant case is tied to statutory language while the notion of exhaustion exists in the common law.
It is evident that ODOT’s decertification of Double “LL” constituted an order as defined by the OAPA.
However, the question arises as to whether the order was final. If the order was not final then judicial review was not appropriate under section 318. Absent specific statutory provisions to the contrary, an order is final under section 318 when the administrative process ends and legal obligations resulting from that process are imposed.
Conoco v. State Dept. of Health,
651 P.2d 125, 127 (Okla.1982).
In order to receive federal highway funds, ODOT is required by the Surface Transportation and Uniform Relocation Assistance Act of 1987 (STURAA)
to implement a DBE set-asides program in the awarding of contracts. All parameters of the DBE program are established by STURAA and by rules and regulations of the United States Department of Transportation (USDOT) as codified at 49 C.F.R. Part 23.
The State of Oklahoma operates its own separate DBE program. In 1987, the Oklahoma Legislature enacted the Oklahoma Minority Business Enterprise Assistance Act (OMBEA) which establishes preferences for Minority Business Enterprises (MBEs)
in the procurement of state contracts. 74 O.S. 1991, § 85.45. The act sets the criteria for determining whether a business entity is an MBE and empowers the State Purchasing Director to accord certification. 74 O.S.1991, § 85.45e. Any person adversely affected by the denial of certification may appeal according to procedures set forth in the OAPA. 74 O.S.1991, § 85.45e(D). However, the Legislature specifically exempted ODOT from the provisions of the OMBEA 74 O.S.1991, § 85.45c(C). Exemption of ODOT from OM-BEA evidences intent on the part of the Oklahoma Legislature to defer to the federal DBE program created by STURAA
Consequently, the DBE program administered by ODOT is defined and regulated wholly by federal law. Federal statutes and USDOT rules and regulations not only establish the criteria for determining DBE certification but also provide for administrative remedy when certification is denied or revoked. Under 49 C.F.R. 23.55(a), a party whose DBE certification is revoked by a state agency has the right to appeal to US-DOT. The Secretary of Transportation has the discretion to sustain decertification during the pendency of the appeal but only after providing the aggrieved party with the opportunity to show cause by written statement as to why eligibility should continue. 49 C.F.R. 23.55(c). As a result, the administrative process does not end and legal obligations are not definitively imposed until US-DOT considers the matter on appeal and either reverses or affirms decertification.
In the case at bar, ODOT denied Double “LL” continued DBE certification. Double “LL” then sought relief in state court before pursuing the available administrative remedy, namely, appeal to USDOT. Because the administrative process was not at an end, the order of ODOT to deny continued certification to Double “LL” was not a final order and, therefore, not subject to judicial review under the OAPA.
The district court also lacked jurisdiction under the common law rule of exhaustion of administrative remedies. As a general rule, judicial review of an agency order is not permitted until all administrative remedies have been exhausted.
Myers v. Bethlehem Shipbuilding Corp.,
303 U.S. 41, 50-51, 58 S.Ct. 459, 463, 82 L.Ed. 638 (1938);
Lone Star Helicopters, Inc. v. State,
800 P.2d 235, 237 (Okla.1990);
Martin v. Harrah Independent School District,
543 P.2d 1370, 1372 (Okla.1975). However, premature judicial review is permissible when administrative remedies are inadequate.
Mattoon v. City of Norman,
617 P.2d 1347, 1350 (Okla.1980). Remedies are inadequate when unavailable, ineffective or futile to pursue.
Lone Star Helicopters,
800 P.2d at 237.
In the instant case, the administrative remedy available to Appellee is the right to appeal to USDOT which has the authority to order certification. As a result, Double “LL” has the possibility to completely vindicate its claim within the prescribed administrative process. The available remedy is therefore
adequate. Resort to early judicial intervention in such a situation interferes with the efficiency of the administrative process, the effectiveness and autonomy of agencies, and burdens the courts.
This Court has also declared that the administrative process can be circumvented when the following elements are conjunctively present: 1) the presence of a constitutional question, 2) a sufficient showing of inadequacy of administrative relief, and 3) a sufficient showing of “threatened or impending irreparable injury resulting from delay incident to following the prescribed procedure.”
Martin,
643 P.2d at 1375. We have already established that adequate relief was available to Double “LL.” Because the elements of the
Martin
exception are conjunctive, the absence of any one element disables invocation of the exception. As a result, the
Martin
exception does not apply to the instant ease.
Because appeal to USDOT provided the opportunity for complete relief, we conclude that the administrative remedy available to Appellee was sufficiently adequate to preclude circumvention of the exhaustion rule.
Further, it is important to note that revocation of DBE certification by ODOT can never be a final order under section 318 of the OAPA because ODOT’s adjudication is always subject to appeal to USDOT
. Only USDOT can issue a final order with regard to the revocation of DBE certification. Moreover, administrative remedies in cases such as the one at bar can only be exhausted by appeal to a federal agency. The question arises, therefore, as to whether an Oklahoma court has jurisdiction to review the final order of a federal agency. We believe that it does not.
The doctrine of sovereign immunity precludes suits against the United States government without the consent of Congress.
United States v. Dalm,
494 U.S. 596, 607, 110 S.Ct. 1361, 1367, 108 L.Ed.2d 548 (1990);
Block v. North Dakota,
461 U.S. 273, 287, 103 S.Ct. 1811, 1819, 75 L.Ed.2d 840 (1983);
United States v. Mitchell,
445 U.S. 535, 538, 100 S.Ct. 1349, 1351, 63 L.Ed.2d 607 (1980). Congressional waiver of sovereign immunity must be “unequivocally expressed”.
United States v. Nordic Village,
503 U.S. 30, 33, 112 S.Ct. 1011, 1014, 117 L.Ed.2d 181 (1992);
Irwin v. Department of Veterans Affairs,
498 U.S. 89, 95, 111 S.Ct. 453, 457, 112 L.Ed.2d 435 (1990) reh’g denied, 498 U.S. 1075, 111 S.Ct. 805, 112 L.Ed.2d 865 (1991);
Mitchell,
445 U.S. at 538, 100 S.Ct. at 1351. Also see
United States v. Williams,
— U.S. -, -, 115 S.Ct. 1611, 1616, 131 L.Ed.2d 608 (1995) (“Our task is to discern the ‘unequivocally expressed’ intent of Congress.”). The waiver cannot be implied.
Irwin,
498 U.S. at 95, 111 S.Ct. at 457;
Mitchell,
445 U.S. at 538, 100 S.Ct. at 1351;
United States v. King,
395 U.S. 1, 4, 89 S.Ct. 1501, 1502, 23 L.Ed.2d 52 (1969). ‘Waivers of immunity must be ‘construed strictly in favor of the sovereign,’
McMahon v. United States,
342 U.S. 25, 27 [72 S.Ct. 17, 19, 96 L.Ed. 26] (1951), and not ‘enlarge[d]’ ... beyond what the language requires.
Eastern Transportation Co. v. United States,
272 U.S. 675, 686
[47 S.Ct. 289, 291, 71 L.Ed. 472] (1927).”
United States Department of Energy v. Ohio,
503 U.S. 607, 615, 112 S.Ct. 1627, 1633, 118 L.Ed.2d 255 (1992) quoting
Ruckelshaus v. Sierra Club,
463 U.S. 680, 685-686, 103 S.Ct. 3274, 3277, 77 L.Ed.2d 938 (1983). Also see
Williams,
— U.S. at -, 115 S.Ct. at 1615-1616 (waiver may not be enlarged “beyond the purview of the statutory language”; ambiguous language to be construed in favor of immunity);
United States v. Kubrick,
444 U.S. 111, 117, 100 S.Ct. 352, 356, 62 L.Ed.2d 259 (1979) (the waiver cannot be extended or narrowed beyond that which Congress intended). “[T]he terms of [the sovereign’s] consent to be sued in any court define that court’s jurisdiction to entertain the suit.”
Lehman v. Nakshian,
453 U.S. 156, 160, 101 S.Ct. 2698, 2701, 69 L.Ed.2d 548 (1981) quoting
United States v. Testan,
424 U.S. 392, 399, 96 S.Ct. 948, 953, 47 L.Ed.2d 114 (1976);
Mitchell,
445 U.S. at 538, 100 S.Ct. at 1351. As a result, no court, state or federal, is competent to hear a cause of action for review of the administrative decisions of a federal agency absent an express Congressional waiver of immunity for such actions.
Section 10 of the original Administrative Procedure Act
, presently codified at 5 U.S.C. §§ 701-706 (1994), creates a cause of action for judicial review of federal agency action for a person adversely affected or aggrieved by such action. 5 U.S.C. § 702 (1994). Agency action that is final or made reviewable by statute is subject to review. 5 U.S.C. § 704 (1994).
In 1976, the U.S. Congress enacted Public Law 94-574
which amended 5 U.S.C. § 702 to read in part: “An action in a court of the United States seeking relief other than money damages and stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief therein be denied on the ground that it is against the United States or that the United States is an indispensable party.”
The purpose of the amendment was to facilitate judicial review of federal agency actions by eliminating the defense of sovereign immunity.
However, immunity was waived only for actions instituted in “a court of the United States.” No waiver was made for actions brought in state courts. Because waiver cannot be implied
but must be express and unequivocal, and because its terms must be strictly construed in favor of immunity so as not to enlarge its scope beyond what the language requires, we conclude, based solely upon the terms of 5 U.S.C. § 702 (1994), that federal agencies are immune from suit for judicial review under the APA in state courts.
Our conclusion is consistent with the intent of Congress as expressed in the legislative history. House Report No. 94-1656 states:
“The first of the additional sentences provides that claims challenging official action or nonaction, and seeking relief other than money damages, should not be barred by sovereign immunity. The explicit exclusion of monetary relief makes it clear that sovereign immunity is abolished only in actions for specific relief (injunction, declaratory judgment, mandatory relief, etc.). Thus, limitations of the recovery of money damages contained in the Federal Tort Claims Act, the Tucker Act, or similar statutes are unaffected.
The consent to suit is also limited to claims in courts of the United States; hence, the United States remains immune from suit in state courts.”
[Emphasis added.]
H.R.Rep. No. 94-1656, 94th Cong., 2d Sess. 11,
reprinted in
1976 U.S. Code Cong. & Admin.News 6121, 6131.
The Sixth Circuit Court of Appeals in
Federal National Mortgage Association v. LeCrone,
868 F.2d 190 (6th Cir.1989), in analyzing section 702 and the legislative history of Pub.L. No. 94-1656, argued that “[i]f Congress had intended the state courts to be proper fora for suits seeking judicial review under the APA Congress would have waived sovereign immunity for suits in state courts as well. By refusing to waive sovereign immunity for APA actions in the state courts Congress has implicitly vested exclusive jurisdiction over these actions in the federal courts.”
LeCrone,
868 F.2d at 193.
We agree with the Sixth Circuit’s reasoning. It is our determination that Congress did not intend that state courts have jurisdiction over APA causes of action. Because Congress refused to lift immunity for APA suits in state courts, the bar remains.
We are supported in our conclusion by the opinion of the Superior Court of New Jersey in
National State Bank v. Gonzalez,
266 N.J.Super. 614, 630 A.2d 376 (1993). Plaintiff National State Bank brought a foreclosure action against Defendant Gonzalez in a New Jersey court. Gonzalez then filed a third party complaint against Henry Cisne-ros, Secretary of the United States Department of Housing and Urban Development, alleging that the Secretary had erred by refusing to provide her temporary mortgage assistance payments pursuant to the National Housing Act, 12 U.S.C. § 1715u(a). Invoking the doctrine of sovereign immunity and relying on
LeCrone,
the court dismissed Gonzalez’s complaint for lack of subject matter jurisdiction.
As a result, because this Court and its inferior courts lack jurisdiction to review federal agency actions under the federal APA, should Double “LL” be dissatisfied with the result of its administrative appeal to USDOT, it must turn to the federal courts for relief.
Because the order by ODOT revoking Double “LL’s” DBE certification was not a final order under section 318 of the OAPA and because administrative remedies had not been exhausted, review by the district court was improper.
CERTIORARI PREVIOUSLY GRANTED. OPINION OF THE COURT OF APPEALS VACATED. JUDGMENT OF THE TRIAL COURT REVERSED.
KAUGER, V.C.J., and HODGES, LAVENDER, SIMMS, HARGRAVE and SUMMERS JJ., concur.
OPALA and WATT, JJ., dissent.