Fyodor And Pelageya Klimovich, App. v. Wa. St. Dshs, Res.

Court of Appeals of Washington·Decided August 11, 2014·No. 69938-5·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

FYODOR KLIMOVICH and NO. 69938-5-1 PELAGEYA KLIMOVICH, — ^^ DIVISION ONE m

Appellants, -n -r\

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STATE OF WASHINGTON, UNPUBLISHED OPINION -<cj _)

DEPARTMENT OF SOCIAL & HEALTH SERVICES, FILED: August 11, 2014

Respondent.

Lau, J. — Fyodor and Pelageya Klimovich1 appeal the Department of Social and Health Services' decision to terminate the "individual provider" contracts of their in-home care providers, Ivan Kozorezov and Larisa Kozorezova.2 The Department terminated their contracts based on a finding that the provider's inadequate performance or inability to deliver quality care jeopardized the client's health, safety, and well-being. On appeal,

1 Fyodor Klimovich died on February 24, 2011.

2 For clarity, we refer to Ivan Kozorezov and Larisa Kozorezova by their first names. Ivan and Larisa are husband and wife.

Pelageya Klimovich assigns error to finding of fact 38 and related conclusion of law 8. Because substantial evidence supports the challenged finding, the findings support the challenged conclusion, and Klimovich fails to show that the decision was arbitrary and capricious, we affirm the final decision and order terminating the individual provider contracts.

FACTS

Beginning in 2005, state-licensed home care agency Chesterfield Home Care Services employed Ivan and Larisa to provide in-home care for Larisa's mother, Pelageya Klimovich, and for her stepfather, Fyodor Klimovich. In May 2009, a new state law discontinued funding for in-home care performed by family members of home care agency clients. Laws of 2009, ch. 571, § 1, codified as RCW 74.39A.326. This new law required family members to contract directly with the Department as individual providers in order to continue working as paid care givers. In June 2009, Ivan and Larisa agreed to sign individual provider contracts in order to continue as care givers for the Klimoviches.

In early July 2009, Bruk mailed paperwork to the Klimoviches at the address the Department had on file for them. The postal service returned the documents, indicating the Klimoviches had moved. Bruk called Larisa to find out what happened. Larisa explained that she changed the Klimoviches' mailing address to her own home address because their mail was getting lost or stolen. When Bruk visited the Klimoviches' home on July 27, 2009, she discovered that it was vacant. Bruk called the Klimoviches' telephone number, but it was disconnected. On July 29, 2009, Bruk confronted Larisa about the discrepancy. Larisa informed Bruk that the Klimoviches moved to a new home, next door to Ivan and Larisa's home. Larisa apologized and blamed the failure to report the address change on her "fear of spies, who are watching them all the time, like in Russia." Certified Appeal Board Record (CABR) at 10.

On September 28, 2009, Ivan and Larisa signed "individual provider" contracts offered directly by the Department. The contracts took effect on November 1, 2009. On November 19, 2009, the Department notified the Klimoviches that it planned to terminate the contracts, effective November 30, 2009. Amended notices to the Klimoviches dated April 5, 2010, stated the Department's rationale for the action. The Department "[found] that the provider's inadequate performance or unwillingness to deliver quality care is jeopardizing your health, safety, or well-being" and also because it "determined that your provider is not qualified based on character, competence, and suitability." Administrative Record (AR) at 938, 944. The amended notices also described a number of alleged problems, including Ivan and Larisa's alleged failure to notify the Department about the Klimoviches' relocation to a different residence. The Department specifically alleged, "Larisa has repeatedly falsified information .. . about: [The Klimoviches] moving to a new address; or of changes of with whom you lived and where the services were provided." CABR at 946.

The Klimoviches requested an administrative hearing to appeal the Department's termination of Ivan and Larisa's individual provider contracts.3 After a series of hearings, an administrative law judge (ALJ) upheld the terminations. In October 2011, a Department review judge affirmed the ALJ's order. Among other conclusions of law, the

3WAC XXX-XX-XXXX specifies that the right to appeal termination of an individual provider contract belongs to the client and not the individual provider.

judge ruled, "Because of [Ivan and Larisa's] inability to truthfully communicate with the Department regarding the [Klimoviches'] continued physical location, the Department properly denied the [Klimoviches] their choice of individual providers and correctly terminated [Ivan and Larisa's] individual provider contracts." CABR 16.

Fyodor Klimovich died on February 24, 2011. In January 2013, the superior court denied Pelageya Klimovich's petition for judicial review. Klimovich appeals the Department review judge's final decision and order.

ANALYSIS

The Administrative Procedure Act, chapter 34.05 RCW, governs review of agency decisions. "We apply the standards of RCW 34.05 directly to the record before the agency, sitting in the same position as the superior court." Citv of Redmond v. Cent. Puqet Sound Growth Mqmt. Hearings Bd.. 136 Wn.2d 38, 45, 959 P.2d 1091 (1998). The burden rests on Klimovich to demonstrate the invalidity of the agency's action. RCW 34.05.570(1 )(a). We will grant relief from the Department review judge's order if "[t]he order is not supported by evidence that is substantial when viewed in light of the whole record before the court. .. ." RCW 34.05.570(3)(e). We will also grant relief if "[t]he order is arbitrary or capricious." RCW 34.05.570(3)(i).

Under the substantial evidence test, we uphold challenged findings when they are supported by a sufficient quantity of evidence to persuade a fair-minded person of their truth or correctness. Raven v. Dep't of Soc. & Health Servs., 177Wn.2d 804, 817, 306 P.3d 920 (2013). Unchallenged findings are verities on appeal. Tapper v. Emp't Sec. Dep't, 122 Wn.2d 397, 407, 858 P.2d 494 (1993). "When reviewing factual issues, the substantial evidence standard is highly deferential to the agency fact finder."

Chandler v. Office of Ins. Comm'r, 141 Wn. App. 639, 648, 173 P.3d 275 (2007). The fact finder's credibility determinations are not subject to review. Thomas v. Dep't of Emp'tSec. 176 Wn. App. 809, 813, 309 P.3d 761 (2013) ("A reviewing court will not substitute its judgment for that of the agency regarding witness credibility or the weight of the evidence."). After reviewing the findings for substantial evidence, we review de novo whether the challenged conclusions of law flow from the findings. Cantu v. Dep't of Labor & Indus., 168 Wn. App. 14, 21, 277 P.3d 685 (2012).

Klimovich assigns error to one finding of fact:

38. [Department witnesses] Karen Heeney, Elena Bruk, and Vincent Guerra, all testified that it is the case manager's duty to monitor the health, safety, and well-being of the client and to maintain an accurate Plan of Care to meet the client's needs. [Ivan and Larisa's] failure to notify the Department of the Appellants' move to the 206 address deprived the Department of the ability to monitor the health, safety, and well-being of the Appellants and to ensure that their care plan was accurate and that their care needs were met.

CABR 10. Our review of the record shows substantial evidence supports this finding.

The review judge found that Department case manager Elena Bruk and Chesterfield case manager Hanna Hatalskaya provided credible testimony supporting the Department's allegation that Ivan and Larisa failed to update the Klimoviches' address during an approximately four-week period in July 2009:

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