Fuchs v. Oklahoma State Board of Pharmacy

2003 OK CIV APP 68, 76 P.3d 91, 74 O.B.A.J. 2458, 2003 Okla. Civ. App. LEXIS 52, 2003 WL 22076461
CourtCourt of Civil Appeals of Oklahoma
DecidedJuly 17, 2003
DocketNo. 97,489
StatusPublished

This text of 2003 OK CIV APP 68 (Fuchs v. Oklahoma State Board of Pharmacy) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuchs v. Oklahoma State Board of Pharmacy, 2003 OK CIV APP 68, 76 P.3d 91, 74 O.B.A.J. 2458, 2003 Okla. Civ. App. LEXIS 52, 2003 WL 22076461 (Okla. Ct. App. 2003).

Opinion

Opinion by

KENNETH L. BUETTNER, Judge.

T1 The State Board of Pharmacy revoked Clayton Fuchs' permit to establish a pharmacy and his professional pharmacist's lHeense on multiple grounds. Mainstreet Pharmacy was an internet pharmacy and had no walk-in customers in its Norman, Cleveland County, Oklahoma, store. Fuchs appealed the Board's order to the District Court of Cleveland County. The State Board of Pharmacy (Board) moved to transfer venue to Oklahoma County, the site of its residence and where it issued the license and permit. The matter was transferred, but through inadvertence, the administrative record was not forwarded to Oklahoma County. The District Court of Oklahoma County nonetheless issued an order affirming the Board's decision. We hold that a review of an administrative order is fatally flawed if the District Court on review does not have the record before it. Consequently, the order of the District Court on appeal is reversed. Further, because the permit to operate the pharmacy resulted in adverse action against the pharmacy, we hold that venue was properly laid in Cleveland County and direct that the matter be transferred to Cleveland County for review.

T2 Fuchs contends that the review of the administrative order by the District Court was incomplete; that the order granting transfer of venue was contrary to law; and that revocation of the license and permit was excessive in light of the cireumstances and nature of the charges.

18 The revocation of the pharmacy license and the permit to establish a pharmacy were procedures subject to the Oklahoma Administrative Procedures Act, 75 0.8. Supp. 1997 § 250 et seq. What constitutes review of the agency order is specifically cireum-scribed. Title 75 section 821 states:

The review shall be conducted by the court without a jury and shall be confined to the record, except that in cases of alleged irregularities in procedure before the agency, not shown in the record, testimony thereon may be taken in the court. The court, upon request, shall hear oral argument and receive written briefs.

14 In the case at bar, the District Court accepted briefs and heard oral argument. There was no allegation of irregularities in the administrative process and, consequently, no witnesses testified. Unfortunately, the reviewing court did not have the administrative record before making its decision and the parties did not realize this until after the order was entered. The basis of review is on the record. What happened here was a reliance on the briefs and argument. However, briefs and argument do not constitute evidence.1 In Fuchs' ap[93]*93pellate brief in the District Court, he raises two allegations of error: that there was no statutory authority to revoke his license and permit, and that the revocation of his license was clearly erroneous in view of the evidence in the record. He cited parts of the transcript of the administrative hearing in support of his arguments. The District Court impermissibly denied itself meaningful review because it did not have the record before it rendered its decision.

T5 The Board argues that the briefs contained sufficient record information to support the District Court's decision. We hold, however, that briefs are insufficient, even when they cite parts of the record, because they are not evidence and their purpose is to persuade the reviewing court. The law requires the Court to have the record. There is no way any party or the Court can waive this requirement. Where an appeal of an agency action raises sufficiency of the evidence issues, it is error not to review the administrative record.

T6 The Board also states that even if failure to review the record is erroneous, because this reviewing court does have the administrative record, then the error is harmless. However, the Act provides that there is a right to two reviews, once in District Court and thereafter, if the party aggrieved by the order of the District Court desires, in the Supreme Court 75 O.S8. Supp.1992 § 318 (judicial review in district court); 75 0.8.2001 § 328 (Judicial review of district court's order by appeal to Oklahoma Supreme Court). The District Court's order on review was not supported by the record and must be reversed. See Freeman v. Shultz 468 F.2d 120 (C.A.D.C.1972)(When there is no administrative record, there is no showing of the allegations, the answers to the allegations or the administrative body's determination).

T7 With respect to venue, there were two entities against whom complaints were made: Clayton Fuchs (pharmacist license) and Mainstreet Pharmacy (permit to operate a pharmacy). Each entity was charged with nine counts. After the administrative hearing, Clayton Fuchs, in his capacity as pharmacy permit holder (Maintst-reet Pharmacy) was found guilty on all counts except he was found not guilty on Count VII (having an "employee physician" write prescriptions for controlled dangerous substances which were not issued for legitimate medical purposes). Clayton Fuchs, as a pharmacist, was found guilty on all nine counts of violation of the Board's rules.2

T8 The venue of review proceedings is provided in Title 0.8.75 2001 § 818(B)(2), which states:

... proceedings for review shall be instituted by filing a petition, in the district court of the county in which the party seeking review resides or at the option of such party where the property interest affected is situated....

T9 In the case at bar, there are two aggrieved entities, the pharmacist and the pharmacy. The pharmacist is not a resident of Oklahoma. He has a constitutionally protected property interest in his license. Johnson v. Board of Governors of Registered Dentists of the State of Oklahoma, 1996 OK 41, 913 P.2d 1339; Mills v. New Mexico State Board of Psychologist Examiners, 1997-NMSC-028, 123 N.M. 421, 941 P.2d 502. Venue is at the option of the petitioner. The statute does not permit the Board to request for transfer of venue. The Board could have moved to dismiss because of improper venue, but did not do so. Only if the "property interest affected" could not be said to be in Cleveland County would venue be improper there.

10 Admittedly, one property interest affected was the permit itself. The permit for the pharmacy was issued by the Board from its seat in Oklahoma County, and the Board claims the situs of the permit is therefore Oklahoma County. While this may be true, then Fuchs, as petitioner, could have filed the petition for review in Oklahoma County. That does not answer the question whether some property interest of Fuchs, affected by [94]*94the Board's action, was also situated in Cleveland County.

T 11 The Board's orders affected the physical business of the pharmacy. It shut the pharmacy down. Even though it was an internet pharmacy, there was an office, Main-street Pharmacy in Norman, Cleveland County, Oklahoma. A permit to operate a pharmacy is not the same as a professional license. And it must have a physical location. The pharmaey's physical location was in Cleveland County. Venue was properly placed in the District Court of Cleveland County and transfer to Oklahoma County was error. Section 818(B)(2) gives the venue option to the petitioner and is broad enough to include the physical location of the pharmacy.

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Related

Wesley Freeman v. George P. Shultz
468 F.2d 120 (D.C. Circuit, 1972)
Mills v. New Mexico State Board of Psychologist Examiners
1997 NMSC 028 (New Mexico Supreme Court, 1997)
Johnson v. Board of Governors of Registered Dentists
913 P.2d 1339 (Supreme Court of Oklahoma, 1996)

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Bluebook (online)
2003 OK CIV APP 68, 76 P.3d 91, 74 O.B.A.J. 2458, 2003 Okla. Civ. App. LEXIS 52, 2003 WL 22076461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuchs-v-oklahoma-state-board-of-pharmacy-oklacivapp-2003.