Fairview General Hospital v. Fletcher

586 N.E.2d 80, 63 Ohio St. 3d 146, 1992 Ohio LEXIS 274
CourtOhio Supreme Court
DecidedMarch 11, 1992
DocketNo. 91-315
StatusPublished
Cited by65 cases

This text of 586 N.E.2d 80 (Fairview General Hospital v. Fletcher) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fairview General Hospital v. Fletcher, 586 N.E.2d 80, 63 Ohio St. 3d 146, 1992 Ohio LEXIS 274 (Ohio 1992).

Opinion

The cause is affirmed on authority of the court of appeals’ opinion below, rendered December 20, 1990 and attached as an appendix to this opinion.

Moyer, C.J., Sweeney, Holmes, Douglas and Resnick, JJ., concur. Wright and H. Brown, JJ., concur separately.

APPENDIX

McCormac, Judge.

Defendant-appellant, Robert Fletcher, the Director of the Ohio Department of Health (“ODH”), appeals the judgment of the Franklin County Court of Common Pleas which overruled his motion for summary judgment and granted summary judgment in favor of plaintiff-appellee, Fairview General Hospital (“Fairview”). The trial court declared that Ohio’s certificate of need (“CON”) law was inapplicable to appellee’s request to ODH for a redesignation of the level of its neonatal intensive care unit (“NICU”) from Level II to Level III, [147]*147and that the director exceeded his statutory authority when he applied Ohio’s CON law to deny appellee’s request.

This case began on February 4, 1987, when Fairview submitted a letter to ODH requesting a redesignation of the Level II status of its NICU issued by ODH in 1980 to a Level III status. ODH replied on March 5, 1987 that Fairview was required to submit a CON application to change the level of its perinatal service, and stated that ODH would review the hospital’s entire perinatal service when it considered Fairview’s application because CON law did not permit the redesignation of a NICU.

Fairview did not consider the director’s request for a CON application a determination by ODH under R.C. 3702.53(A)(1) and (2) that the redesignation of its NICU was a “reviewable activity” to which the CON statutes apply, and thus did not immediately appeal the matter to the Certificate of Need Review Board (“CONRB”).1 Instead, Fairview submitted its CON application in August 1987. Nevertheless, appellant advised Fairview by a letter dated April 6, 1988 that its application had been denied based on need. On May 4, 1988, Fairview filed an administrative appeal with the CONRB in which it assigned as error appellant’s application on CON law to its original request; however, Fairview voluntarily dismissed this appeal on February 24, 1989 before a judgment was issued by the CONRB.

On August 15, 1988, during the interim between the filing and voluntary dismissal of its administrative appeal, Fairview filed a complaint seeking a declaratory judgment and a writ of mandamus in the Franklin County Court of Common Pleas. Specifically, Fairview sought a declaration that Ohio’s CON laws were inapplicable to Fairview’s request for a redesignation of its NICU and an order compelling appellant to redesignate Fairview’s NICU a Level III facility.

In response to Fairview’s request for declaratory relief, cross-motions for summary judgment were filed by Fairview and ODH. On September 28,1989, the trial court granted summary judgment for Fairview, ruling that Ohio’s CON law was inapplicable to Fairview’s request to ODH for a redesignation of its NICU, and that the director exceeded his statutory authority when he applied Ohio’s CON law to deny the request. The court overruled ODH’s motion for summary judgment, rejecting its affirmative defenses of exhaus[148]*148tion of remedies and res judicata. Subsequently, Fairview dismissed its mandamus action.

ODH appeals the declaratory judgment asserting the following assignments of error:

“I. The trial court erred in failing to dismiss the action below where the issue before the court was res judicata.

“II. The trial court erred in failing to dismiss the action below where Appellee failed to exhaust its administrative remedies.

“HI. The Trial court erred in finding that Appellee’s change from a Level II to a Level III NICU does not require a certificate of need.”

The summary judgment which granted declaratory relief for appellee was proper pursuant to Civ.R. 56(C) if the evidence, viewed most strongly in favor of appellant, showed that there was no genuine issue as to any material fact and that appellee was entitled to judgment as a matter of law. In this case, the facts which indicated the chronology of events were undisputed at the trial court. The merit issues presented to the trial court were whether appellant exceeded his statutory authority when he applied Ohio’s CON law to deny Fairview’s request for a redesignation of its NICU and, more particularly, whether a CON was required before such a redesignation could take place. In other words, the trial court’s summary judgment for appellee declared the change in the status of a NICU from Level II to Level III a non-reviewable activity under R.C. 3702.53(A) for which a CON was not required as a matter of law.

Before the merits of the declaratory judgment can be considered, we must address appellant’s first and second assignments of error, which assert that a declaratory judgment action was inappropriate because the question of whether Ohio’s CON statutes applied in this case should have been answered first by the CONRB. Specifically, appellant contends that the trial court abused the discretion granted it by Ohio’s Declaratory Judgments Act, R.C. 2721.02 et seq., when it entertained the declaratory judgment action since appellee had failed to exhaust all of its existing administrative remedies, including adjudication by the CONRB, before it invoked the subject matter jurisdiction of the common pleas court. Additionally, appellant asserts that appellee’s failure to pursue administrative appeals of the director’s action rendered those determinations final and binding.

It is settled in Ohio that the three elements necessary to obtain a declaratory judgment as an alternative to other remedies are: (1) that a real controversy between adverse parties exists; (2) which is justiciable in character; (3) and that speedy relief is necessary to the preservation of rights which may be [149]*149otherwise impaired or lost. Herrick v. Kosydar (1975), 44 Ohio St.2d 128, 130, 73 O.O.2d 442, 443, 339 N.E.2d 626, 627; Buckeye Quality Care Centers, Inc. v. Fletcher (1988), 48 Ohio App.3d 150, 154, 548 N.E.2d 973, 976. Application of the aforementioned three criteria to the circumstances in this case leads to the conclusion that the trial court’s declaratory judgment was inappropriate and an abuse of discretion. Although there was a justiciable controversy between adverse parties at the time appellee filed its declaratory judgment action, declaratory relief was unnecessary to the preservation of appellant’s rights because Ohio’s CON statutes provided appellant with an adequate legal remedy.

Exhaustion of administrative remedies is not required where the only claim presented in a declaratory judgment action is the validity or constitutionality of a statute. Herrick, supra, 44 Ohio St.2d at 130, 73 O.O.2d at 443, 339 N.E.2d at 628; Buckeye Quality Care Centers, Inc., supra, 48 Ohio App.3d at 154, 548 N.E.2d at 977.

In Arbor Health Care Co. v. Jackson (1987), 39 Ohio App.3d 183, 530 N.E.2d 928, we determined the propriety of declaratory relief when a plaintiff seeks a declaration of its constitutional rights in addition to a declaration of its statutory rights. In

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anton v. Petras
2025 Ohio 2861 (Ohio Court of Appeals, 2025)
Wos v. Cleveland
2025 Ohio 1456 (Ohio Court of Appeals, 2025)
Guerrini v. Chanell Roofing & Home Improvement
2024 Ohio 585 (Ohio Court of Appeals, 2024)
Martens v. Price
2023 Ohio 4359 (Ohio Court of Appeals, 2023)
Ferner v. State
2020 Ohio 4698 (Ohio Court of Appeals, 2020)
T & M Machines, L.L.C. v. Atty. Gen.
2020 Ohio 551 (Ohio Court of Appeals, 2020)
State ex rel. CannAscend Ohio, L.L.C. v. Williams
2020 Ohio 359 (Ohio Court of Appeals, 2020)
Corder v. Ohio Edison, Co.
2019 Ohio 2639 (Ohio Court of Appeals, 2019)
State v. Graham
2019 Ohio 1485 (Ohio Court of Appeals, 2019)
One Energy Ents., L.L.C. v. Dept. of Transp.
2019 Ohio 359 (Ohio Court of Appeals, 2019)
OMG MSTR LSCO, L.L.C. v. Dept. of Medicaid
2018 Ohio 4843 (Ohio Court of Appeals, 2018)
Tankersley v. Ohio Fair Plan Underwriting Assn.
2018 Ohio 4386 (Ohio Court of Appeals, 2018)
State v. Morrissette
2018 Ohio 3917 (Ohio Court of Appeals, 2018)
State ex rel. Beard v. Hardin (Slip Opinion)
2018 Ohio 1286 (Ohio Supreme Court, 2018)
Hinton v. Ohio Bureau of Sentence Computation
2018 Ohio 237 (Ohio Court of Appeals, 2018)
Wilkins v. Harrisburg
2015 Ohio 5472 (Ohio Court of Appeals, 2015)
SP9 Ent. Trust v. Brauen
2014 Ohio 4870 (Ohio Court of Appeals, 2014)
Rose v. Primal Ability, Ltd.
2014 Ohio 3610 (Ohio Court of Appeals, 2014)
M6 Motors, Inc. v. Nissan of N. Olmsted, L.L.C.
2014 Ohio 2537 (Ohio Court of Appeals, 2014)
Omnireal, Inc. v. Meyers Lake
2012 Ohio 5092 (Ohio Court of Appeals, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
586 N.E.2d 80, 63 Ohio St. 3d 146, 1992 Ohio LEXIS 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairview-general-hospital-v-fletcher-ohio-1992.