In re the Occupational License of Haymes

427 N.W.2d 248, 1988 Minn. App. LEXIS 649, 1988 WL 73163
CourtCourt of Appeals of Minnesota
DecidedJuly 19, 1988
DocketNo. C6-88-344
StatusPublished
Cited by1 cases

This text of 427 N.W.2d 248 (In re the Occupational License of Haymes) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Occupational License of Haymes, 427 N.W.2d 248, 1988 Minn. App. LEXIS 649, 1988 WL 73163 (Mich. Ct. App. 1988).

Opinion

OPINION

WOZNIAK, Chief Judge.

This is an appeal from the order of an administrative law judge awarding attorney fees and expenses to Kathy Hutchinson pursuant to the Minnesota Equal Access to Justice Act, Minn. Stat. § 3.762 (1986). The Minnesota Racing Commission petitioned for discretionary review, claiming the administrative law judge erred in determining that Hutchinson was eligible to recover attorney fees and that the judge erred in determining the Minnesota Racing Commission’s position was not “substantially justified” under Minn.Stat. § 3.762. We reverse.

FACTS

Kathy Hutchinson has been licensed by the Minnesota Racing Commission (Commission) as an owner and trainer of racehorses since 1985. She has been involved with horseracing since 1947, and employs eight people, including her assistant trainer, Jack Haymes. Haymes was first licensed by the Commission in 1986. Hutchinson directed the training of the horses and directed Haymes’ administration of medication to the horses.

In 1986, Hutchinson and Haymes trained and raced several horses at Canterbury Downs. In late August, the Minnesota Racing Analytical Laboratory detected the presence of medication in the post-race urine samples of three horses trained by Hutchinson and Haymes. The rules allegedly prohibited the administration of “medication” within 48 hours of a race. Minn.R. 7890.0110 (Supp.1986).

Following the discovery that the horses were given medication, the Board of Stewards suspended Hutchinson for 30 days, ordered her off the premises controlled by the Commission, and declared all her horses ineligible. The Board of Stewards also suspended Haymes for 30 days, fined him $500, and ordered him off the premises.

Both Hutchinson and Haymes filed appeals with the Commission, and on September 23 the Stewards’ rulings were stayed pending resolution of the appeals through a contested case hearing before an administrative law judge. The two contested cases were consolidated because they comprised virtually identical factual and legal issues. Hutchinson and Haymes were represented by separate counsel at the hearing.

After the conclusion of the hearing, the administrative law judge recommended that no disciplinary action be taken against either party. The judge determined that there was no evidence medication was administered within 48 hours of a race, that the medication Hutchinson administered was not “prohibited medication” within the rules, and that the other alleged rule violations were inapplicable because those sections set out evidentiary standards as opposed to prohibitions. The legislature subsequently acted to clarify the law regarding medication of racehorses, and the rules also were amended. See 1987 Minn.Laws, ch. 69, § 4, and Minn.R. 7890.0110 (1987).

The Commission then issued an order affirming the administrative law judge’s recommendation to dismiss all charges [250]*250against Haymes, but proceeded to impose disciplinary sanctions against Hutchinson. Hutchinson’s sanctions are not the subject of this appeal, and no appeal was taken from the order dismissing the charges against Haymes.

Hutchinson and Haymes applied for an award of attorney fees and expenses pursuant to the Minnesota Equal Access to Justice Act (EAJA), Minn.Stat. §§ 3.761-.764 (1986). The EAJA provides that if a prevailing party in a civil or contested case hearing brought by or against the state shows the state was not “substantially justified,” the administrative law judge may award attorney fees and expenses. Minn.Stat. § 3.762(a). Hutchinson sought the attorney fees she paid on behalf of Haymes in her capacity as his employer.

The administrative law judge determined. that Haymes was not a “party” within the statute, and he was not entitled to attorney fees and expenses. However, the judge ruled that Hutchinson was a “party” in the Haymes case as a result of the consolidation of the cases and because her racing business was an “unincorporated business” within Minn.Stat. § 3.761, subd. 6(a). The judge also found that the Commission’s position was not “substantially justified,” and awarded Hutchinson $6,083 in attorney fees.

Finally, the administrative law judge noted that any party dissatisfied with the rill-ing could petition for leave to appeal to this court pursuant to Minn.Stat. § 3.764, subd. 2. By order dated March 1, 1988, this court granted the Commission’s petition for discretionary review.

ISSUES

1. Does this court have jurisdiction to hear an order awarding attorney fees and expenses pursuant to Minn.Stat. § 3.764, subd. 2?

2. Is Hutchinson eligible to recover attorney fees under Minn.Stat. §§ 3.761 and 3.762?

ANALYSIS

1. The EAJA provides for appellate review of attorney fee awards as follows:

A party dissatisfied with the fee determination * * * may petition for leave to appeal to the court having jurisdiction to review the merits of the underlying decision of the contested case. * * * If the court grants the petition, it may modify the determination only if it finds that the failure to make an award, or the calculation of the amount of the award, was an abuse of discretion.

Minn.Stat. § 3.764, subd. 2.

The EAJA permits an appeal to the court which possessed jurisdiction to review the merits of the “underlying decision of the contested case.” Id. This court had jurisdiction to review the Commission’s “underlying decision” from Hutchinson and Haymes’ consolidated hearing. See Minn. Stat. §§ 240.20 and 14.63. Because this court had jurisdiction to review the underlying decision, and because this court granted discretionary review pursuant to the statute, this court has jurisdiction to hear the appeal.

We note that Minn.Stat. § 3.764, subd. 2 establishes a narrow scope of review and does not address review of awards based upon alleged errors of law or in excess of statutory authority, as is the claim in this case. There is a presumption in favor of judicial review of agency decisions in the absence of statutory language to the contrary. Minnesota Public Interest Research Group v. Minnesota Environmental Quality Council, 306 Minn. 370, 376, 237 N.W.2d 375, 379 (1975). Judicial review of agency decisions generally is governed by the APA. Reserve Mining Co. v. Herbst, 256 N.W.2d 808, 826 (Minn.1977). The APA provides for judicial review of agency decisions if they are “in excess of statutory authority” or “affected by other error of law.” Minn.Stat. § 14.69(b), (d) (1986).

Multiple statutes covering similar subject matter should be construed consistently if possible. Lenz v. Coon Creek Watershed District, 278 Minn. 1, 11, 153 N.W. 2d 209, 217 (1967). The EAJA fails to govern alleged errors of law, and applica[251]*251tion of the APA on review in this case does not lead to inconsistency. We find Hutchinson’s additional jurisdictional claims without merit.

2. The EAJA permits the “prevailing party” to recover attorney fees from the state upon a showing that the state’s position was not substantially justified. Minn. Stat. § 3.762(a). The EAJA defines “party,” in pertinent part, as follows:

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Related

In Re the Occupational License of Haymes
444 N.W.2d 257 (Supreme Court of Minnesota, 1989)

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Bluebook (online)
427 N.W.2d 248, 1988 Minn. App. LEXIS 649, 1988 WL 73163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-occupational-license-of-haymes-minnctapp-1988.