McDougle v. State ex rel. Bruning

289 Neb. 19
Nebraska Supreme Court·Decided September 12, 2014·No. S-12-1186·Published·Cited by 5 cases

Opinion

McDOUGLE v. STATE EX REL. BRUNING 19 Cite as 289 Neb. 19

CONCLUSION

For the foregoing reasons, we reverse the decision of the Court of Appeals. We remand the cause with direction to enter an order affirming the district court’s entry of summary judgment in favor of State Farm.

R eversed and remanded with direction.

Eric McDougle, LMHP, PLADC, appellant, v.

State of Nebraska ex rel. Jon Bruning, Attorney General, appellee.

___ N.W.2d ___

Filed September 12, 2014. No. S-12-1186.

1. Jurisdiction. Subject matter jurisdiction is a question of law for the court. 2. Statutes: Appeal and Error. The meaning and interpretation of a statute are questions of law, which an appellate court reviews independently of the lower court.

3. Administrative Law: Jurisdiction: Appeal and Error. Where a district court has statutory authority to review an action of an administrative agency, the district court may acquire jurisdiction only if the review is sought in the mode and manner and within the time provided by statute.

4. Jurisdiction: Appeal and Error. If the court from which an appeal was taken lacked jurisdiction, the appellate court acquires no jurisdiction.

5. Administrative Law: Words and Phrases. An administrative agency is a neutral factfinding body when it is neither an adversary nor an advocate of a party.

6. Administrative Law: Parties. When an administrative agency acts as the primary civil enforcement agency, it is more than a neutral factfinding body.

7. ____: ____. An agency that is charged with the responsibility of protecting the public interest, as distinguished from determining the rights of two or more individuals in a dispute before such agency, is more than a neutral factfinding body.

8. ____: ____. The Attorney General’s involvement as the plaintiff in a petition for discipline does not negate the role of the Division of Public Health of the Department of Health and Human Services in disciplining a credential holder as something more than only a neutral factfinding body.

9. Statutes: Words and Phrases. As a general rule, the word “shall” in a statute is considered mandatory and is inconsistent with the idea of discretion.

10. Statutes: Appeal and Error. While statutes relating to the same subject matter will be construed so as to maintain a sensible and consistent scheme, an appellate court must do so by giving effect to every provision.

11. Administrative Law: Parties: Appeal and Error. There is no inherent incon­ sistency between Neb. Rev. Stat. §§ 38-186 (Cum. Supp. 2012) and 38-187 20 289 NEBRASKA REPORTS

(Reissue 2008) and the plain mandate of Neb. Rev. Stat. § 84-917(2)(a)(i) (Cum. Supp. 2012) that an agency that acted as more than just a neutral factfinding body be classified as a “party of record” for purposes of determining what entities shall be parties to the proceedings for review.

Appeal from the District Court for Lancaster County: Andrew R. Jacobsen, Judge. Reversed and remanded for further proceedings.

Denise M. Destache, of Lamson, Dugan & Murray, L.L.P., for appellant.

Jon Bruning, Attorney General, and Julie L. Agena for appellee.

Heavican, C.J., Wright, Connolly, Stephan, McCormack, Miller-Lerman, and Cassel, JJ.

McCormack, J.

NATURE OF CASE

Eric McDougle’s licenses to practice as a mental health practitioner and as a provisional alcohol and drug counselor were revoked in a decision by the director of the Division of Public Health of the Department of Health and Human Services (Department). McDougle petitioned the district court for review of the decision, naming the Department and the State as parties to the petition for review and timely serving process upon them. The issue in this case is whether the Department was properly a “party of record” under the Administrative Procedure Act, such that the petitioner was not required to separately serve the Department with a copy of the petition and a request for preparation of the official record as a prerequisite to the district court’s jurisdiction over the petition for review.

BACKGROUND

McDougle held a mental health license and a provisional alcohol and drug counseling license issued by the Department. The Department is the agency of the State of Nebraska authorized to enforce the provisions of the Uniform Credentialing

McDOUGLE v. STATE EX REL. BRUNING 21 Cite as 289 Neb. 19

Act1 regulating the practice of mental health and alcohol and drug counseling.

Subsections (2) and (23) of § 38-178 state that a professional licensee may be disciplined for dishonorable conduct evidencing unfitness to meet the standards of practice of the profession or for unprofessional conduct. Unprofessional conduct includes “any departure from or failure to conform to the standards of acceptable and prevailing practice of a profession.”2 The regulations relating to mental health practitioners provide that “[s]exual intimacy with a former client for 2 years following termination of therapy is prohibited.”3 It is undisputed that McDougle had a sexual relationship with a client approximately 1 month after terminating their professional relationship . McDougle self-reported the incident to the Department. He asserted that at the time of the relationship, he did not know it was in violation of applicable regulations.

The Department conducted an investigation, which was considered by the Board of Mental Health Practice. The board recommended that the State file a petition, pursuant to § 38-186, for disciplinary action seeking revocation of McDougle’s licenses.

Under § 38-186(1), “[a] petition shall be filed by the Attorney General in order for the director [of the Department4] to discipline a credential obtained under the Uniform Credentialing Act.” Under § 38-187 of the Uniform Credentialing Act:

The following rules shall govern the form of the petition in cases brought pursuant to section 38-186:

(1) The state shall be named as plaintiff and the credential holder as defendant;

(2) The charges against the credential holder shall be stated with reasonable definiteness;

1 See Neb. Rev. Stat. § 38-101 to 38-1,140 (Reissue 2008 & Cum. Supp. 2012).

2 See § 38-179.

3 172 Neb. Admin. Code, ch. 94, § 016.05 (2004).

4 § 38-116.

22 289 NEBRASKA REPORTS

(3) Amendments may be made as in ordinary actions in the district court; and (4) All allegations shall be deemed denied, but the credential holder may plead thereto if he or she desires.

A petition for disciplinary action accordingly was filed with the Department naming the “STATE OF NEBRASKA ex rel. JON BRUNING, Attorney General,” as plaintiff and McDougle as defendant.

A hearing upon the petition was held before the chief medical officer and director of the Department (Director). On May 18, 2012, the Director issued an order revoking McDougle’s licenses to practice as a mental health practitioner and provisional alcohol and drug counselor in the State of Nebraska. The Director found clear and convincing evidence that McDougle’s conduct was unprofessional and was grounds for discipline. The Director then concluded that revocation was the appropriate disciplinary sanction for such conduct.

On June 13, 2012, McDougle filed in the district court a petition for judicial review of the Director’s decision. The Uniform Credentialing Act states that “[b]oth parties to disciplinary proceedings under the Uniform Credentialing Act shall have the right of appeal, and the appeal shall be in accord­ ance with the Administrative Procedure Act.”5 Neb. Rev. Stat. § 84-917(2)(a)(i) (Cum. Supp. 2012) of the Administrative Procedure Act states in turn:

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McDougle v. State ex rel. Bruning, 289 Neb. 19 (Neb. 2014).

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