Indiana Department of Public Welfare v. Chair Lance Service, Inc.

523 N.E.2d 1373, 1988 Ind. LEXIS 149, 1988 WL 58568
CourtIndiana Supreme Court
DecidedJune 8, 1988
Docket49S02-8806-CV-527
StatusPublished
Cited by50 cases

This text of 523 N.E.2d 1373 (Indiana Department of Public Welfare v. Chair Lance Service, Inc.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Department of Public Welfare v. Chair Lance Service, Inc., 523 N.E.2d 1373, 1988 Ind. LEXIS 149, 1988 WL 58568 (Ind. 1988).

Opinions

SHEPARD, Chief Justice.

In this case we consider whether a corporation's attorney can verify a petition for judicial review under the Administrative Adjudication Act. We hold that it can.

Chair Lance Service, Inc., is a Medicaid provider in the business of transporting both private and Medicaid wheelchair patients. The Indiana Department of Public Welfare ("IDPW") reimburses Chair Lance for transporting Medicaid patients. The present controversy began when IDPW withheld certain payments upon its finding that Chair Lance had overcharged. Chair Lance appealed to IDPW's review board and lost. Chair Lance petitioned for judicial review under the Administrative Adjudication Act, Ind.Code § 4-22-1-14 (Burns 1986 Repl.).1

The trial court determined IDPW had abused its discretion because it had not complied with a controlling federal regulation. The court ordered a refund of withheld payments and prejudgment interest. The Court of Appeals affirmed and remanded the case to IDPW for determination of the amount to be refunded, stating that the prejudgment interest issue was moot. Indiana Department of Public Welfare v. Chair Lance Service, Inc. (1983), Ind.App., 448 N.E.2d 1216.

On September 27, 1988, LIPDW sent Chair Lance a check for the principal amount withheld. IDPW wrote to Lioyd Shonkweiler, president of Chair Lance, on September 18 and 27 stating "the Indiana Department of Public Welfare has reached a decision to refund the amount of $10,-716.00. ... [This] represents a full refund of the pended payments...." No mention was made of prejudgment interest.

On January 3, 1984, Chair Lance request ed prejudgment interest and attorney fees. On March 26 and April 2, 1984, IDPW wrote to Chair Lance's attorney, Michael Gooch, refusing the request. IDPW contended that the September 13, 1983, letter to Shonkweiler was a final administrative decision from which IDPW's administrative regulations provided thirty days for an ad[1376]*1376ministrative appeal. See 470 IAC § 5-1-4 (1984).

Chair Lance immediately petitioned for judicial review of IDPW's refusal to pay attorney fees and prejudgment interest, an issue Chair Lance contended was no longer "moot." The petition incorporated the correspondence between Gooch and IDPW regarding IDPW's denial of interest and fees and was verified by Gooch. The, petition also incorporated the affidavit of Jay Michael Brodey, counsel for Chair Lance, attesting to his firm's "long-standing" attorney-client relationship with Chair Lance, and the amount of attorney fees incurred.

IDPW argued that the trial court did not have jurisdiction because Chair Lance's petition was not properly verified by an officer of the corporation, and because Chair Lance had not "timely pursu[ed] his [sic] administrative remedies." The trial court denied IDPW's motion to dismiss and awarded interest to Chair Lance. The court did not address the issue of attorney fees.

After motions to correct error were denied, both parties appealed. The Court of Appeals held that a petition for judicial review must be verified by a corporate officer and reversed. Indiana Department of Public Welfare v. Chair Lance Service, Inc., 506 N.E.2d 840 (Ind.App.1987)

We grant transfer and address the following issues:

I. Whether the verification of a petition for judicial review of an administrative proceeding affecting a party corporation must be made by an officer of the corporation;
II. Whether IDPW's March 26 letter to Chair Lance constituted a final administrative determination subject to judicial review;
Whether the trial court erred in failing to award attorney fees to Chair Lance; and IIL.
IV. ''Whether the trial court erred in awarding interest to Chair Lance.

I. Verification of Petition

The Administrative Adjudication Act requires that a petition for judicial review be verified. Indiana Code § 4-22-1-14 states:

Any party or person aggrieved by an order or determination made by any such agency shall be entitled to a judicial review thereof in accordance with the provisions of this act. Such review may be had by filing with the cireuit or superior court of the county in which such person resides, or in any county in which such order or determination is to be carried out or enforced, a verified petition.

The Act does not specifically indicate who may verify a petition for judicial review on behalf of a corporation. The Court of Appeals has held that verification may be made only by the corporation's executive or administrative officers. Gary Community Mental Health Center, Inc. v. Indiana Department of Public Welfare (1986), Ind.App., 496 N.E.2d 1341; Community Care Centers, Inc. v. Indiana Department of Public Welfare (1984), Ind.App., 468 N.E.2d 602. In support of its holding, the Community Care court cited Fidelity & Casualty Co. v. Carroll (1917), 186 Ind. 633, 117 N.E. 858.

In Fidelity, this Court held that an affidavit required by statute to support a petition for a change of judge on grounds of bias must be made by an executive or administrative officer of the party corporation, not by its agent or attorney. The petitioner was a New York corporation doing business in Indiana, and the affidavit in support of its motion was made by the corporation's Indiana district manager. The controlling statute directed that a change of venue be granted "when either party shall make and file an affidavit of the bias, prejudice, or interest of the judge before whom the said cause is pending." Id. at 634, 117 N.E. at 859, quoting Ind. Code § 422 (Burns 1914).

The Fidelity Court found that the language of the statute at issue required that "an affidavit for a change of venue from the judge on the ground of bias, prejudice or interest must be made by the party, and not by his agent or attorney...." Id. at [1377]*1377635, 117 N.E. at 859 (emphasis in original). The Court's rationale proceeded on the theory that "in a broad sense a corporation always acts through an agent, and can act in no other way" but that there were certain situations in which the corporation could "act for itself through some agency inherent in its corporate form." Id. at 685, 117 N.E. at 859, quoting 2 Thompson, Corporations § 1887 (2d ed.).

Three aspects of Fidelity make it less valuable as precedent for the case at bar. First, the statute at issue in Fidelity required that the "party shall make ... an affidavit," while the statute in the instant case does not specify who shall make the required verification. Second, the district manager in the Fidelity case had no express, implied, or apparent authority to act on behalf of the corporation in the litigation.

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Bluebook (online)
523 N.E.2d 1373, 1988 Ind. LEXIS 149, 1988 WL 58568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-department-of-public-welfare-v-chair-lance-service-inc-ind-1988.