Indiana Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission

836 N.E.2d 255, 2005 Ind. LEXIS 975, 2005 WL 2789097
Indiana Supreme Court·Decided October 27, 2005·No. 49S02-0504-CV-137·Published·Cited by 4 cases

Opinion

BOEHM, Justice.

The Administrative Orders and Procedures Act sets forth the standing requirements for a person seeking judicial review of an agency's action. Because the Indiana Association of Beverage Retailers was not a party to the administrative proceedings before the Indiana Alcohol and Tobacco Commission, the Association did not have standing to seek judicial review of the agency's action.

Factual and Procedural Background

Thornton Oil Corporation operates convenience stores that also sell gasoline. In January 2001 Thornton filed an application for a Type 115 beer and wine permit for its Lawrence, Indiana store. After investigation and review, the Marion County Local Board held a hearing on the application. Two retailers who were members of the Indiana Association of Beverage Retailers (IABR), appeared at the hearing and opposed the application, arguing "lack of desire or need" for the permit and also that Thornton was not a "grocery store," and therefore was not eligible for a permit under Indiana Code section 7.1-3-5-2(a). The Marion County Alliance of Neighborhood Associations (MCANA) also appeared at the hearing opposing the application. At the conclusion of the hearing, the Local Board voted 2-1 to deny Thornton's application on the ground that Thornton was not a "grocery store." The Indiana Alcohol and Tobacco Commission (ATC) initially adopted the Local Board's recommendation.

Thornton sought administrative review before the ATC and a Hearing Judge was assigned to conduct an "appeal hearing." IABR and MCANA appeared at the hearing and presented testimony opposing Thornton's application. In December 2002 the Hearing Judge entered findings of fact and conclusions of law, finding that the *257 determination of the Local Board and the ATC ruling adopting that determination were not based on substantial evidence, and concluding that Thornton was a "grocery store" and should be issued a permit. The ATC subsequently approved the Hearing Judge's findings and conclusions and issued a permit to Thornton.

IABR sought judicial review of ATC's grant of a permit to Thornton. ATC moved to dismiss, arguing that IABR lacked standing to seek judicial review of its order. The trial court granted ATC's motion, finding that neither IABR nor IABR's members, as competitors® of Thornton, had standing to' challenge the grant of an alcohol permit to Thornton. The Court of Appeals reversed, holding that IABR was a party to the administrative proceedings and was therefore entitled to seek judicial review. Ind. Ass'n of Beverage Retailers, Inc. v. Ind. Alcohol & Tobacco Comm'n, 809 N.E.2d 374, 379 (Ind.Ct.App.2004), reh'g denied, 2004 Ind. App. LEXIS 1676 (Ind.Ct.App. Aug. 19, 2004). We granted transfer. Ind. Ass'n of Beverage Retailers, Inc. v. Ind. Alcohol & Tobacco Comm'n, 831 N.E.2d 743 (Ind.2005).

Standing for Judicial Review of Administrative Decisions

Judicial review is available only to those who have standing, who have exhausted administrative remedies, who have timely pursued review, and who have met any other requirements established by law. Peabody Coal Co. v. Ind. Dep't of Natural Res., 664 N.E.2d 1171, 1172 n. 2 (Ind.1996) (citing Ind.Code § 4-21.5-5-2(b)). IABR sought judicial review of the ATC's order pursuant to the Administrative Order and Procedures Act (AOPA), Indiana Code article 4-21.5 (2004). AOPA explicitly enumerates five categories of persons 1 who "have standing to obtain judicial review of an agency action." 2 1C. § 4-21.5-5-8(a). With exceptions not relevant here, these ultimately require that the person be "aggrieved or adversely affected" or be a subject of the order or a party to the agency proceedings. IABR claims standing under section 5-3(a)(2) as "a party to the agency proceedings." AOPA defines a "party" to administrative proceedings as "(1) a person to whom the agency action is specifically directed; or (2) a person expressly designated in the record of the proceeding as a party to the proceeding." I.C. § 4 21.5-1-10. IABR was plainly not a "person to whom the agency action [was] specifically directed." However, IABR contends that because it attended, remonstrated, and offered testimony at the administrative hearings on Thornton's permit, it was a "party" to those proceedings. We do not agree.

*258 ATC Regulations define a "remon-strator" as "a person who appeared, personally or by counsel, as a remonstrator against the application at the local board hearing and identified himself to the local board, stating his name and address or telephone number to the board at the hearing." 905 Ind. Alcoholic Beverage Comm'n (ILA.C.) § 1-86-2(a) (2001). IABR did appear before the Local Board and identified itself and therefore was a "remonstrator" at Thornton's permit application proceedings. However, as a "re-monstrator," IABR was not a designated "party to the proceeding." A remon-strator is entitled to "personal notice of [the ATC] action or written notice of [the ATC] action by certified mail." Id. at § 1-36-2(a). A remonstrator is also entitled to notice of any appeal hearing. Id. at § 1-36-2(f). The Court of Appeals held that these notice requirements along with IABR's participation in Thornton's application proceedings made IABR a party to those proceedings. Ind. Ass'n of Beverage Retailers, Inc., 809 N.E.2d at 379. We conclude however, that the regulation contemplates notice to and participation by "remonstrators" who are not "parties."

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Indiana Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission, 836 N.E.2d 255, 2005 Ind. LEXIS 975, 2005 WL 2789097 (Ind. 2005).

836 N.E.2d 255 (Indiana Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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