Indiana State Ethics Commission v. Nelson

656 N.E.2d 1172, 1995 WL 619082
CourtIndiana Court of Appeals
DecidedJanuary 24, 1996
Docket32A01-9410-CV-335
StatusPublished
Cited by13 cases

This text of 656 N.E.2d 1172 (Indiana State Ethics Commission v. Nelson) 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 State Ethics Commission v. Nelson, 656 N.E.2d 1172, 1995 WL 619082 (Ind. Ct. App. 1996).

Opinion

OPINION

ROBERTSON, Judge.

This is the first appellate decision regarding the judicial review of a decision and order of the Indiana State Ethics Commission. The Commission charged State Foresters Jack E. Nelson and Allen D. Royer with violations of a code of ethics regulation for buying and selling classified forest land under their authority. After a full administrative hearing, the Commission found that Nelson and Royer had violated the regulation and fined them in an amount equal to the respective profit each had reaped in the subject transaction ($15,000.00 each). In addition, Nelson was reprimanded for using his secretary to notarize the deeds pertaining to the transaction. Royer was reprimanded for inspecting and approving his own land for the Indiana Classified Forest Program.

Nelson filed a petition for judicial review in the Hendricks Superior Court. The court reversed the Commission's decision, and the Commission appeals. Royer filed. his petition for judicial review in the Putnam Cireuit Court. The court affirmed the Commission's decision, and Royer appeals. The two appeals have been consolidated.

The Commission raises three issues in its appellant's brief, and Royer raises four. We consolidate the issues for analysis and uphold the Commission's orders in all respects. Therefore, we affirm the decision of the Putnam Cireuit Court and reverse the decision of the Hendricks Superior Court.

FACTS

The dispositive facts are not in dispute. Nelson is employed by the Indiana Department of Natural Resources as the regional supervisor of district foresters for the northern region of the state. In this capacity, Nelson supervises eight district foresters including Royer. Nelson is also responsible for administering the Indiana Classified Forest Program on a state-wide basis. The Forestry Divigion actively promotes the Classified Forest Program and works directly with landowners to assist them in obtaining the maximum in economic and other benefits from their forest land. In order for land to be accepted and retained in the Classified Forest Program, the district forester must inspect the land and reinspect the land every five years. The district forester points out any necessary improvements that must be made to the forest land. When land becomes designated in the Classified Forest Program, the landowner receives substantial benefits, including a favorable property tax break. Land in the program is taxed on an assessment of $1.00 per acre. Also, the District Forester is to provide technical assistance to *1174 the forest landowner in marking and marketing the timber. A District Forester has knowledge of timber price trends and can estimate the volume and value of timber. Royer had had experience working for a paper company estimating timber volume and was quite capable of estimating the value of timber and timber land.

In addition to (and in conjunction with) their employment as State Foresters, Nelson and Royer had for many years been engaged in the lucrative business of buying and selling Classified Forest Land and/or its timber. The set of transactions that gave rise to the present case pertains to Nelson's and Roy-er's purchase and sale of Classified Forest Land which had been owned by an ailing widow, Esther Lemm Logan.

By 1992, Royer had been monitoring Mrs. Logan's land for eleven years and was aware that she had timber on her property that was ready to be harvested and sold. On August 5, 1992, Royer and Nelson were working together in the field as State Foresters. While drinking coffee at Hardees, they decided to go to Mrs. Logan's property ostensibly for the purpose of conducting the five-year inspection. (The inspection was not due for another two years.) While walking the property, Royer and Nelson discussed purchasing Mrs. Logan's property and agreed that Roy-er would contact her to see if she would sell.

Within the next few months, Nelson and Royer 1) had purchased approximately 160 acres of Classified Forest Land from Mrs. Logan for $63,000.00, 2) had harvested about one-half of the marketable timber from the land, and 3) had sold the harvested timber for approximately $97,000.00. After deducting expenses of approximately $4,000.00, Nelson and Royer 1) had reaped approximately $30,000.00 in profit from Mrs. Logan's land, 2) still had almost one-half of the marketable timber left to harvest and sell, and 3) owned the 160 acres of land which remained in the Clasgified Forest Program (with the favorable tax treatment).

Additional facts are supplied as necessary.

DECISION

Under the Administrative Orders and Procedures Act [AOPA], L.C. 4-21.5-5-14 governs the judicial review of agency decisions and reads as follows:

(a) The burden of demonstrating the invalidity of agency action is on the party to the judicial review proceeding asserting invalidity.
[[Image here]]
(d) The court shall grant relief [from the ageney order] only if it determines that a person seeking judicial relief has been prejudiced by an agency action that is:
(1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
(2) contrary to 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.

Under the AOPA, the scope of a court's judicial review is limited to a consideration of (1) whether there is substantial evidence to support the agency's finding and order and (2) whether the action constitutes an abuse of discretion, is arbitrary, capricious, or in excess of statutory authority as revealed by the uncontradicted facts. Indiana Department of Environmental Management v. Conard (1993), Ind., 614 N.E.2d 916, 919. In reviewing an administrative decision, a court cannot try the facts de novo or substitute its own judgment for that of the agency. Id. The party challenging the administrative order bears the burden of showing that there are no substantial facts to support the agency's finding or that the action was arbitrary and capricious and outside the jurisdiction or authority of the ageney. Id. The court on judicial review of an agency decision is governed by the presumption that the agency's decision is correct in view of its expertise. Columbus Board of Zoning Appeals v. Wetherald (1992), Ind.App., 605 N.E.2d 208, 211, trans. denied.

The Department of Natural Resources is responsible for providing forestry assistance to private forest land owners for the purpose of providing for the better pro *1175 tection, management, development, and utilization of forest products, forests, and waste lands located in the state of Indiana. Ind. Code 14-5-8-2. State Foresters Nelson and Royer were charged with a violation of 40 Ind. Administrative Code [IAC] 2-1-8, which reads:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kinnaird v. Secretary
817 N.E.2d 1274 (Indiana Court of Appeals, 2004)
Cole v. State
790 N.E.2d 1049 (Indiana Court of Appeals, 2003)
Hinojosa v. State
752 N.E.2d 107 (Indiana Court of Appeals, 2001)
STATE BD. OF REG. FOR PROF. ENG. v. Eberenz
723 N.E.2d 422 (Indiana Supreme Court, 2000)
State Board of Registration for Professional Engineers v. Eberenz
723 N.E.2d 422 (Indiana Supreme Court, 2000)
T & K Roofing Co. v. Iowa Department of Education
593 N.W.2d 159 (Supreme Court of Iowa, 1999)
Taylor v. Indiana Family & Social Services Administration
699 N.E.2d 1186 (Indiana Court of Appeals, 1998)
LTV Steel Co. v. Zeller
686 N.E.2d 904 (Indiana Court of Appeals, 1997)
Yater v. Hancock County Board of Health
677 N.E.2d 526 (Indiana Court of Appeals, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
656 N.E.2d 1172, 1995 WL 619082, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-state-ethics-commission-v-nelson-indctapp-1996.