In the Matter of 2015 Class C License Application of Dr. Mohamed El Deeb.

Court of Appeals of Minnesota·Decided September 12, 2016·No. A15-1534·Unpublished

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).

STATE OF MINNESOTA

IN COURT OF APPEALS

A15-1534

In the Matter of 2015 Class C License Application of Dr. Mohamed El Deeb.

Filed September 12, 2016

Affirmed; motion denied

Smith, Tracy M., Judge

Minnesota Racing Commission

Josh Casper, St. Paul, Minnesota; and Todd Young, Roseville, Minnesota (for relator Dr. Mohamed El Deeb)

Lori Swanson, Attorney General, Joan M. Eichhorst, Assistant Attorney General, St. Paul, Minnesota (for respondent Minnesota Racing Commission)

Considered and decided by Larkin, Presiding Judge; Smith, Tracy M., Judge; and Klaphake, Judge. UNPUBLISHED OPINION

SMITH, TRACY M., Judge Relator Dr. Mohamed El Deeb challenges respondent Minnesota Racing Commission’s (MRC) denial of his 2015 application for a Class C racehorse-owner license. El Deeb argues that (1) the MRC’s decision is not supported by substantial evidence, (2) the MRC’s decision is arbitrary and capricious because the MRC considered an outstanding account without a creditor complaint and because the MRC’s

 Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10.

decision reflected its will and not its judgment, (3) the MRC deprived him of his rights to due process and equal protection, and (4) the MRC was statutorily prohibited from considering El Deeb’s criminal charges for false statements on his prior applications. The MRC filed a motion to strike three portions of El Deeb’s reply brief. We affirm and deny the motion to strike.

FACTS

In February 2015, El Deeb applied for a Class C racehorse-owner license from the MRC. El Deeb’s 2014 Class C license application had been denied due to El Deeb’s failure to maintain workers’ compensation insurance; failure to disclose animal- mistreatment and traffic-law-violation charges; horse neglect and death as evidenced by a Minnesota Animal Humane Society report; a written complaint of animal neglect from an out-of-state party with substantiating photos; complaints and information regarding El Deeb’s business practices; and concerns about his competence as an owner and breeder, financial responsibility, and reputation for honesty. The 2014 denial constituted prima facie evidence of El Deeb’s unfitness for licensure, placing the burden on El Deeb to prove his fitness for licensure in 2015. See Minn. R. 7877.0125, subp. 2 (2015).

In March and April 2015, the MRC sent El Deeb four notices, one via certified mail, one via first-class mail, and two via e-mail, that his 2015 license application would be on the agenda at an upcoming meeting of the MRC’s Administrative Affairs Committee (the committee) and a subsequent MRC meeting. El Deeb did not attend either meeting, and the MRC denied El Deeb’s 2015 license application.

In its order denying El Deeb’s 2015 application, the MRC incorporated the basis for the 2014 license denial as part of the basis for its 2015 decision. The MRC also cited several new matters: (1) a barn fire at one of El Deeb’s farms in December 2014 in which ten horses perished, (2) El Deeb’s lender placing force-placed insurance coverage on El Deeb’s property because his previous policy had been cancelled, and (3) an outstanding account of more than $38,000 with Prairie Farm Supply. The MRC also found that it had sent multiple notices to El Deeb via e-mail and mail and that it had posted meeting notices and agendas referencing his license application at the MRC office and on the MRC website. The MRC concluded that, due to the 2014 license denial, El Deeb bore the burden of proving his fitness for licensure and that he failed to meet that burden.

After the MRC denied his 2015 application, El Deeb e-mailed the MRC’s executive director claiming that he had not received notice of the meetings concerning his application “in a timely fashion.” In the same e-mail, El Deeb requested that the MRC reconsider its decision to deny his 2015 application. The executive director replied that the MRC placed El Deeb’s request for reconsideration on the agenda for the MRC’s next regularly scheduled meeting and informed El Deeb of the meeting’s time and location. El Deeb responded that he would attend if the executive director would “let [him] know” if he should, and the executive director confirmed that El Deeb should attend the meeting.

At its next meeting, the MRC discussed El Deeb’s request for reconsideration;

El Deeb did not attend. After deliberation, the MRC voted and agreed to give El Deeb an opportunity to explain why the MRC should reconsider its decision to deny El Deeb’s

2015 application. El Deeb’s request was referred to the committee, and the MRC gave El Deeb notice of the committee meeting scheduled for July 2, 2015.

El Deeb appeared at the committee meeting, and the committee heard from the executive director and from El Deeb and his witnesses. The executive director summarized the proceedings that had occurred to date, including the MRC’s order denying El Deeb’s 2015 application. The executive director informed the committee that “the burden of proof is on [El Deeb], having once been denied a license, to overcome the presumption that he does not meet licensing requirements in Minnesota.” El Deeb offered four exhibits and the testimony of several witnesses, including himself.

El Deeb’s first witness was K.O., a veterinarian. K.O. testified that she goes to El Deeb’s farms “a couple times a month” and that, on her most recent visit, she observed that the horses were “in good health” and that “[t]hey had good hay and water in front of them.” K.O. stated that “[t]here were some things lacking” such as shavings in the stalls and overdue farrier work. K.O. acknowledged that the horses she most recently saw at El Deeb’s farm were not race horses. K.O. was also asked about a written statement in which she had stated that El Deeb’s “farms are both under-staffed and in desperate need of maintenance.” K.O. tempered this statement by saying that the farms could use “general repair” and that “[an] extra person at each farm would be beneficial.”

Several other witnesses testified favorably about El Deeb and his treatment of horses. C.B., a certified hunter-jumper trainer, testified that she has known El Deeb for approximately ten years and has trained and sold “dozens” of El Deeb’s horses. C.B. has visited El Deeb’s farms more than a dozen times per year and stated that she has never

seen a neglected horse on El Deeb’s farms but agreed that his farms are in need of maintenance. At the time of the hearing, C.B.’s business relationship with El Deeb was no longer ongoing because she had closed her horse business. T.B. testified that he has known El Deeb for 20 years and has been to his farms several times. T.B. stated that he has never had trouble getting paid by El Deeb and that El Deeb’s horses were “typically in good care.” L.C., a Class C license holder, testified that he kept horses at El Deeb’s farm ten years ago. L.C. did not observe any maltreatment and found El Deeb to be “very friendly and very respectable.”

Another witness, F.M., testified concerning the report of animal neglect at issue in the denial of El Deeb’s 2014 application. F.M. is a former employee of B.W. B.W. had received horses from El Deeb and had sent a written complaint to the MRC in 2014 with photos of the apparently maltreated horses. F.M. testified that he thought the horses looked “fine.” F.M.’s testimony was consistent with his written submission in which he stated that one of the horses was “normal and healthy.”

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In the Matter of 2015 Class C License Application of Dr. Mohamed El Deeb., (Mich. Ct. App. 2016).

In the Matter of 2015 Class C License Application of Dr. Mohamed El Deeb. (In the Matter of 2015 Class C License Application of Dr. Mohamed El Deeb.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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