LeFlore Title Co. v. Scott

2003 OK CIV APP 76, 77 P.3d 621, 74 O.B.A.J. 2888, 2003 Okla. Civ. App. LEXIS 60, 2003 WL 22309170
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 26, 2003
DocketNo. 96,948
StatusPublished

This text of 2003 OK CIV APP 76 (LeFlore Title Co. v. Scott) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LeFlore Title Co. v. Scott, 2003 OK CIV APP 76, 77 P.3d 621, 74 O.B.A.J. 2888, 2003 Okla. Civ. App. LEXIS 60, 2003 WL 22309170 (Okla. Ct. App. 2003).

Opinion

Opinion by

JERRY L. GOODMAN, Presiding Judge.

T1 State Auditor and Inspector Clifton Scott and Adams Abstract Company appeal the trial court's October 9, 2001, decision ordering the State Auditor to issue a permit to LeFlore Title Company for construction of an abstract plant. Because the trial court reached the correct result in requiring the issuance of the permit, we affirm.

BACKGROUND-THE OKLAHOMA ABSTRACTORS LAW

12 Anyone wishing to produce abstracts and otherwise engage in the business of abstracting in Oklahoma must obtain authorization to do so pursuant to the Oklahoma Ab-stractors Law, 74 0.9.2001 and Supp.2002 §§ 227.10 through 227.30. Two separate authorizations are required: a permit, which is defined as the authorization to build an abstract plant, see § 227.11(4); and a certificate of authority, which is defined as the authorization to engage in the business of abstract[622]*622ing, see § 227.11(8). Authorization in both cases comes solely from the State Auditor and Inspector. See § 227.12(A).

T3 An abstract plant is a set of records with entries made of all documents filed in the offices of the county clerk and court clerk which legally impart constructive notice of matters affecting title to, interest in, and encumbrances upon real property within that particular county. See § 227.11(2); Abstracts of Oklahoma, Inc. v. Payne County Title Co., 1992 OK 18, n. 1, 825 P.2d 1834. To develop an abstract plant requires the permit, which involves submitting a form, a fee, and a bond. See § 227.21, To engage in the business of abstracting requires a certificate of authority, which involves submitting a separate form, fee, and bond. See § 227.14(A).

T4 The permit must be obtained first. Arbuckle Abstract Co. v. Scott, 1998 OK 125, ¶ 12, 975 P.2d 879, 885. It can be renewed annually where the permit holder has not completed development of an abstract plant. See § 224.21. After completion of the abstract plant and compliance with the statutes, the permit holder can obtain the certificate of authority needed to engage in the business of abstracting. Id.

PROCEDURAL HISTORY

15 LeFlore Title filed an application with the State Auditor for a permit to build an abstract plant in LeFlore County. Adams Abstract, which holds a certificate of authority and engages in the business of abstracting in that county, filed an objection.

16 Two issues developed over the course of the proceedings. The first was whether the county court clerk's books and records were sufficiently complete to allow LeFlore Title to build the abstract plant. Adams Abstract asserted they were not, due to a number of missing files and to conditions at a former hotel where a number of files were stored. LeFlore Title disagreed, asserting that the court clerk maintained listings and indexes for all court orders and every instrument in any missing file.

17 The second issue was whether the first issue needed to be determined at this stage of the proceedings or in the second, certificating stage of the administrative process. Initially, a panel appointed by the State Auditor found that the clerk's records were not so defective as to preclude the issuance of the permit, and recommended the permit be granted. The State Auditor agreed and granted the permit, but then granted a rehearing and appointed a second panel.

8 This second panel found that it was not necessary to resolve the issue of the records completeness, because the statute dealing with the permit had no such requirement. The panel reasoned that the two-step process for ultimately obtaining authority to issue abstracts does not involve the issue of completeness until the applicant reaches the second stage, where the application for the certificate of authority is made. The panel recommended the permit be granted, but with cautionary language that no decision as to the certificate of authority was being made and that should LeFlore Title proceed to build an abstract plant, "it does so at its own risk."

T9 The State Auditor disagreed with the panel and denied the permit application. The Auditor based his decision on his conclusion that the court clerk's records and files were incomplete.

10 LeFlore Title then filed a petition for review in district court. Following a hearing, the trial court reversed the State Auditor's decision and ordered him to issue the permit. The trial court found that the State Auditor's finding that the clerk's records were incomplete was clearly erroneous. From the trial court's judgment, the State Auditor and Adams Abstract appeal.

STANDARD OF REVIEW

T11 The same standards of review apply to both the trial court and the appellate courts when making determinations on appeal from an administrative agency ruling. Seely v. Okla. Horse Racing Comm'n, 1987 OK CIV APP 61, ¶ 10, 748 P.2d 685, 689-90. An agency's adjudicative order will be affirmed if the record contains substantial evidence in support of the facts upon which the decision is based, and if the order is other[623]*623wise free of error. City of Hugo v. State ex rel. Pub. Employees Relations Bd., 1994 OK 134, ¶ 9, 886 P.2d 485, 490. However, an administrative order is subject to reversal if an appealing party's substantial rights are prejudiced because the agency's decision is entered in excess of statutory authority or jurisdiction, or if an order is entered based on an error of law. Title 75 0.8.2001 § 322(1)(b) and (d); City of Tulsa v. State ex rel. Pub. Employees Relations Bd., 1998 OK 92, ¶ 12, 967 P.2d 1214.

ANALYSIS

{12 For the following reasons, we agree with the conclusion reached by the second panel that the sufficiency of the court clerk's records is not a factor in determining whether to issue a permit. It certainly is a factor regarding issuance of a certificate of authority, but that is a different matter. Therefore, because the State Auditor's order was based on an error of law, the trial court's decision reversing the State Auditor's order shall be affirmed. Though the trial court did not reach its result based on this reason, the matter was raised below, and the appellants do not assert it is improper for us to consider it here.

13 To obtain a certificate of authority is to complete the second step in the process of authorization to engage in the business of abstracting. Section 227.14 sets out the procedure for doing so. It is entitled, "Application for certificate of authority-Fee-Bond-Proof required." Subsection (A) requires the application to contain "such information as may be necessary to determine whether or not the applicant has complied with the provisions of the Oklahoma Abstrac-tors Law."

114 That information includes this requirement set out in subsection (B):

The applicant shall furnish proof to the State Auditor and Inspector that there is an abstract plant available for use for each county for which abstracts will be prepared ....

115 Section 227.14, then, clearly contemplates that it is at this point-when the application for the certificate of authority is pending-that the matter of whether an abstract plant is available should be determined by the State Auditor. Whether the court records are sufficiently complete is a factor to consider in making that determination.

16 Obviously, there can be no such requirement in obtaining the permit, because the permit is necessary before the applicant can attempt to develop the abstract plant.

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Related

State Ex Rel. Commissioners of Land Office v. Landess
1955 OK 148 (Supreme Court of Oklahoma, 1955)
Arbuckle Abstract Co. v. Scott
1998 OK 125 (Supreme Court of Oklahoma, 1999)
City of Tulsa v. State Ex Rel. Public Employees Relations Board
1998 OK 92 (Supreme Court of Oklahoma, 1998)
City of Hugo v. State Ex Rel. Public Employees Relations Board
1994 OK 134 (Supreme Court of Oklahoma, 1994)
Seely v. Oklahoma Horse Racing Commission
1987 OK CIV APP 61 (Court of Civil Appeals of Oklahoma, 1987)

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2003 OK CIV APP 76, 77 P.3d 621, 74 O.B.A.J. 2888, 2003 Okla. Civ. App. LEXIS 60, 2003 WL 22309170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leflore-title-co-v-scott-oklacivapp-2003.