MISS. REAL ESTATE APPRAISER v. Schroeder

980 So. 2d 275, 2007 WL 1747849
CourtCourt of Appeals of Mississippi
DecidedJune 19, 2007
Docket2005-CC-01600-COA
StatusPublished
Cited by4 cases

This text of 980 So. 2d 275 (MISS. REAL ESTATE APPRAISER v. Schroeder) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MISS. REAL ESTATE APPRAISER v. Schroeder, 980 So. 2d 275, 2007 WL 1747849 (Mich. Ct. App. 2007).

Opinion

980 So.2d 275 (2007)

MISSISSIPPI REAL ESTATE APPRAISER LICENSING AND CERTIFICATION BOARD, Appellant
v.
J. Daniel SCHROEDER, Appellee.

No. 2005-CC-01600-COA.

Court of Appeals of Mississippi.

June 19, 2007.
Rehearing Denied January 22, 2008.

*279 Office of the Attorney General by Maudine G. Eckford, Jackson, attorney for appellant.

Tina Rose Singletary, Britt R. Singletary, Jackson, Scott Derrick Smith, attorneys for appellee.

EN BANC.

BARNES, J., for the Court.

¶ 1. Following two separate hearings, the Mississippi Real Estate Appraiser Licensing and Certification Board ("Board") found that J. Daniel Schroeder had violated several provisions of the Uniform Standards of Professional Appraisal Practice ("USPAP") in preparing two appraisal reports. The Board found that Schroeder's appraisal report for unimproved property located in Gautier, Jackson County, Mississippi, ("Gautier appraisal") and dated July 23, 1999, contained eleven violations of USPAP standards. An appraisal report dated October 13, 1998, for a Krystal hamburger restaurant to be located on commercial property in Ocean Springs, Mississippi, ("Krystal appraisal") was found to contain two violations of USPAP standards.

¶ 2. For the violations contained in the Gautier appraisal, the Board ordered Schroeder to complete fifteen hours of USPAP course work, placed him on probation for two years from the date the ordered course work is successfully completed, and directed that the disciplinary action be published in the Board's newsletter. Schroeder received identical disciplinary action for the violations contained in the Krystal appraisal, except for a differing probationary term of six months. Schroeder appealed both decisions to the Circuit Court of Harrison County, and that court, having ordered consolidation of the appeals, reversed both orders of the Board, finding that they were arbitrary and capricious and not supported by the evidence. Aggrieved by the order of the circuit court, the Board appeals, asserting error in that its decisions were not arbitrary or capricious and were supported by the evidence. We agree with the Board and, therefore, we reverse the order of the circuit court and render judgment reinstating the Board's orders.

SUMMARY OF THE FACTS AND PROCEDURAL HISTORY

¶ 3. According to Schroeder's hearing testimony, he has been a licensed real estate appraiser for more than twenty-five years, has held the titles of chief investigator and director for the Mississippi Real Estate Commission, and has been presented as an expert witness in both federal and state court proceedings. Schroeder also testified that he owns an educational facility that teaches both pre-licensing and continuing education courses for real estate appraisers. In addition to his real estate appraiser's license, Schroeder testified that he also holds a Mississippi real estate broker's license and a Mississippi contractor's license. According to Schroeder, prior to the disciplinary action taken by the Board in the instant case, he has never been disciplined with respect to any of his professional licenses.

*280 ¶ 4. On May 30, 2000, the Board received an anonymous complaint regarding an appraisal Schroeder completed in October 1998, for the Ready Bank of Fort Walton Beach in Fort Walton, Florida. This appraisal was requested for a Krystal hamburger restaurant situated on approximately 1.06 acres of commercial property in Ocean Springs, Jackson County, Mississippi. On June 9, 2000, the Board received a second anonymous complaint regarding an appraisal performed in July of 1999. The Gautier appraisal was conducted at the request of the Peoples Bank of Biloxi, Mississippi, and the subject property was 6.37 acres of unimproved property located in Gautier, Jackson County, Mississippi. Apparently, the Gautier property was to be subdivided into nineteen residential lots, and the Gautier appraisal report reflects the value of the property as improved in this regard.

¶ 5. The Board retained Iowa appraiser Alan Hummel to review the Gautier and Krystal appraisal reports. Hummel submitted his "Review Appraiser's Conclusions" on April 9, 2001. Thereafter, the Board sent Schroeder separate letters of inquiry, each containing an itemized list of "possible concerns" with regard to the respective appraisals. Following Schroeder's responses to each, the Board issued a "Notice of Hearing" with an attached list of "Violations Alleged" for the Krystal appraisal on December 18, 2001. On the same date, the Board issued a "Notice of Hearing" with a list of alleged violations for the Gautier appraisal.

¶ 6. A Board hearing was had in the Gautier matter on June 20, 2002, and in the Krystal matter on April 3, 2003. Hummel testified as an expert witness on behalf of the Board at both hearings. His testimony essentially mirrored his findings and conclusions contained in his "Review Appraiser's Conclusions." Schroeder also testified at both hearings. As to the Gautier matter, Schroeder testified that the appraisal report sent to the Board along with the anonymous complaint did not contain all of the documents originally contained in the bound report that he submitted to his client. Furthermore, Schroeder asserted that any matter not sufficiently explained in the report itself was explained verbally to the client. While Schroeder conceded that neither report was perfect, he maintained that any errors contained therein did not mislead his client in any way nor did it render the reports unreliable.

¶ 7. By order dated August 22, 2002, the Board ruled that Schroeder had committed eleven violations of the USPAP and/or generally accepted ethical standards and practice in completing the Gautier appraisal. In the Krystal case, the Board ruled by order dated April 30, 2003, that Schroeder had committed two USPAP violations. Pursuant to the violations found in the Gautier appraisal, the Board ordered Schroeder to complete not less than fifteen hours of education on the USPAP, and immediately placed Schroeder on probation. According to the order, the "term of probation shall continue for 24 months from the date of his successful completion of the aforementioned 15 hours of USPAP training." The Board further ordered that during his probationary period, Schroeder could not supervise another licensee, could not be listed as a supervisor by another licensee, and must maintain a log of all appraisal assignments that he completes. Finally, the Board ordered that Schroeder's disciplinary action be published in the Board's newsletter. The disciplinary action contained in the Krystal ruling was identical to that contained in the Gautier order, with the exception of the term of probation. According to the Krystal order, Schroeder was "immediately placed *281 upon probation for a period not to exceed six (6) months."

¶ 8. With respect to the Board's August 22, 2002 ruling in the Gautier matter, Schroeder filed his "Notice of Appeal and Application for Review" in the Circuit Court of Harrison County on September 20, 2002. Schroeder filed a "Notice of Appeal and Request for Stay" in the Krystal case on May 28, 2003. The circuit court ordered that the cases be consolidated. In pertinent part, the circuit court's judgment, entered February 23, 2005, reflects the following conclusions:

This Court has heard argument, reviewed the record and exhibits, read the briefs of the parties and finds the evidence was insufficient to prove Mr. Schroeder materially breached either the USPAP or any ethical standard.

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Bluebook (online)
980 So. 2d 275, 2007 WL 1747849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miss-real-estate-appraiser-v-schroeder-missctapp-2007.