Indiana Real Estate Commission v. Ackman

766 N.E.2d 1269, 2002 Ind. App. LEXIS 672, 2002 WL 827458
CourtIndiana Court of Appeals
DecidedMay 2, 2002
Docket42A04-0109-CV-386
StatusPublished
Cited by23 cases

This text of 766 N.E.2d 1269 (Indiana Real Estate Commission v. Ackman) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Real Estate Commission v. Ackman, 766 N.E.2d 1269, 2002 Ind. App. LEXIS 672, 2002 WL 827458 (Ind. Ct. App. 2002).

Opinion

OPINION

FRIEDLANDER, Judge.

An administrative law judge (ALJ) panel issued and the Indiana Real Estate Commission (the Commission) adopted a final order that imposed disciplinary sanctions on Ronald Ackman. Ackman petitioned for judicial review, and the trial court set aside the final order finding that the doe-trine of laches applied. The sole issue presented by the Commission on appeal is: Did the trial court err in applying the doctrine of laches to reverse a decision of the Commission indefinitely suspending Ackman's real estate license with no right to petition for reinstatement for six months and until he had taken a two-hour continuing education course in escrow account law?

We reverse.

The facts most favorable to the decision reveal that in February and March of 1992, the Indiana Professional Licensing Agency (the Agency) conducted a routine compliance review and escrow audit of Ronald Ackman Real Estate. The audit revealed that Ackman's escrow account was not clearly identified as such and that on multiple occasions, Ackman had either failed to deposit earnest money into his escrow account within two days or had drawn advances from that account prior to closing. As a result of those findings, on August 6, 1998, the State filed a disciplinary complaint before the Commission against Ackman.

A settlement conference was held on September 21, 1998. The proposed settlement called for Ackman's real estate license to be suspended for six months, but *1272 for the suspension to be stayed and Ack-man to be placed on probation with certain requirements for that period. The proposed settlement agreement was not filed, however, until March 31, 1997. The Commission rejected the proposed agreement on May 7, 1997. A hearing was held before an ALJ panel on January 21, 1998. At that hearing, Ackman admitted he had committed the violations alleged in the complaint, but presented evidence that he had been in compliance with all real estate regulations since that time.

On March 25, 1998, the ALJ panel issued an order finding that Ackman had committed the alleged violations and directing Ackman's real estate license to be suspended indefinitely with no right to petition for reinstatement for six months and until he had taken a two-hour continuing education course in escrow account law. The order noted that the Commission was imposing a lesser sanction in this case due to the passage of time and Ackman's evidence demonstrating his compliance with the law since the time of the violations. On June 8, 1998, the Commission issued a final order adopting the ALJ panel's order.

On June 19, 1998, Ackman petitioned for judicial review of that final order. Ackman also petitioned for a stay of the suspension, which the trial court granted. Ackman asserted that the doctrine of laches should apply because he had detrimentally relied on the expected settlement during the period of time between the settlement conference and the rejection of the proposed agreement and had demonstrated his ability to comply with the law during that period of time. On July 19, 2001, the trial court issued an order finding that the doctrine of laches applied and reversing the Commission's suspension of Ackman's real estate license.

Judicial review of an administrative decision is limited. Review of an agency's decision is confined largely to the agency record. The court cannot reweigh the evidence and must review the record in the light most favorable to the administrative proceedings. The court may neither try the case de novo nor substitute its judgment for that of the agency. The reviewing court is to give deference to the expertise of the administrative body. The decision should be reversed only when it is (1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; (2) contrary to a constitutional right, power, privilege, or immunity; (3) in excess of statutory jurisdiction, authority, or limitations, or short of statutory right; (4) without observance of procedure required by law; or (5) unsupported by substantial evidence.

State of Indiana, Indiana Real Estate Comm'n v. C.M.B. III Enterprises, Inc., 734 N.E.2d 653, 658 (Ind.Ct.App.2000).

We note at the outset that Ackman has failed to file an appellate brief. When an appellee fails to submit a brief in accordance with our rules, we need not undertake the burden of developing an argument for the appellee. In re Paternity of C.R.R., 752 N.E.2d 58 (Ind.Ct.App.2001). Indiana courts have long applied a less stringent standard of review with respect to showings of reversible error when an appellee fails to file a brief. Id. Thus, we may reverse the trial court if the appellant is able to establish prima facie error. Id. In this context, "prima facie" is defined as "at first sight, on first appearance, or on the face of it." Johnson Co. Rural Elec. Membership Corp. v. Burnell, 484 N.E.2d 989, 991 (Ind.Ct.App.1985). When an appellant is unable to meet this burden, however, we will affirm. Blair v. Emmert, 495 N.E.2d 769 (Ind.Ct.App.1986), trans. denied.

*1273 The Commission contends that the trial court erred in applying the doctrine of laches in reversing the decision of the Commission indefinitely suspending Ack-man's real estate license. The Commission first argues that the doctrine of laches is inapplicable to governmental entities. As such, the doctrine cannot be invoked to prevent the Commission, a state agency, from suspending Ackman's real estate license. In the alternative, the Commission argues that even if laches can be applied against a government agency, Ackman has failed to prove all three elements of the doctrine.

"The question of laches is one to be determined by the court in the exercise of its sound discretion. For a decision to be reversed on appeal, an abuse of discretion must be clearly demonstrated." Simon v. City of Auburn, Indiana, Bd. of Zoning Appeals, 519 N.E.2d 205, 215 (Ind.Ct.App.1988). An abuse of discretion occurs only when the trial court's conclusion and judgment is clearly against the logic and effect of the facts and cireumstances before the court, or the reasonable, probable, and actual deductions to be drawn therefrom. Taylor v. Metro. Dev. Comm'n, 436 N.E.2d 1157 (Ind.Ct.App.1982).

Laches is an equitable defense that may be raised to stop a person from asserting a claim that he would normally be entitled to assert. Storm, Inc. v. Indiana Dep't of State Revenue, 663 N.E.2d 552 (Ind. Tax Ct.1996). The rationale behind the doctrine of laches is that a person who, for an unreasonable length of time, has neglected to assert a claim against another waives the right to assert his claim when this delay prejudices the person against whom he would assert it. Id.

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766 N.E.2d 1269, 2002 Ind. App. LEXIS 672, 2002 WL 827458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-real-estate-commission-v-ackman-indctapp-2002.