Morgan v. Canary

335 N.E.2d 883, 44 Ohio App. 2d 29, 73 Ohio Op. 2d 18, 1975 Ohio App. LEXIS 5737
CourtOhio Court of Appeals
DecidedFebruary 27, 1975
Docket74AP-441
StatusPublished
Cited by1 cases

This text of 335 N.E.2d 883 (Morgan v. Canary) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Canary, 335 N.E.2d 883, 44 Ohio App. 2d 29, 73 Ohio Op. 2d 18, 1975 Ohio App. LEXIS 5737 (Ohio Ct. App. 1975).

Opinion

Holmes, J.

This matter involves the appeal of a judgment dismissing the cause of action brought by the plaintiff, on the basis that the court lacked jurisdiction over the subject matter because of the historical doctrine of sovereign immunity. The facts giving rise to the action in the trial court, and of this appeal are as follows. The plaintiff, Jean Morgan, is the owner and operator of a nursing home in Hniontown, Ohio, licensed by the Ohio Department of Health. The plaintiff, having been certified by the Department of Public Welfare, entered into a contract with that department, whereby the plaintiff agreed to provide care for patients who were recipients of welfare under the medical assistance program, commonly known as the vendor payment program. The amount of money received *30 by an operator- of a nursing home under the plan depends upon the classification given to the operation’s facilities, the certification of the facility by the Department of Public Welfare, and the care required by the patient as determined by the department.

: In August 1971, the director of the Department of Health proposed to revoke the plaintiff’s license to operate a nursing home on the basis of some unaccomplished improvements to the facilities that the department deemed necessary. There was a hearing on the matter, but, prior to a formal decision thereon, the revocation action was dismissed. Subsequently, the director of the Department of Welfare notified the plaintiff that plaintiff’s nursing home would be decertified unless certain alleged deficiencies were corrected. Such notification indicated that the plaintiff had a right to a hearing within 15 days, but not before the effective date of the decertification. Fifteen days after the notice was given the plaintiff’s nursing home was decertified, thereby reducing the rates and income received' by the plaintiff. Subsequent to decertification, a hearing was afforded the plaintiff. The plaintiff claims that the director presented no evidence at such hearing to support such decertification.

The plaintiff appealed to the Court of Common Pleas of Franklin County, seeking a declaratory judgment as to the rights that are claimed to have been due her, including that of a due process hearing prior to decertification and reclassification, and a declaration as to whether or not such decertification was in accordance with R. C. Chapter 119, which is the Administrative Procedure Act. She also sought mandatory injunctive relief by way of an order that the director of the Department of Welfare pay to the plaintiff the sum which was claimed to be due her, based upon the prior classification of her nursing home as certified.

The Court of Common Pleas by a decision and entry dated July 11, 1973, sustained a motion of the defendants to dismiss the action as to damages, on the basis of sovereign immunity, but overruled the motion to dismiss *31 the action insofar as it pertained to the declaratory relief sought. The action was then appealed to this court and we remanded such matter to the trial court because the trial court had not, in granting judgment for less than all of the claims presented, specifically determined that there was no just reason for delay, pursuant to Civil Rule 54(B)'.-Upon remand, the Court of Common Pleas entered a further order, dated September 16, 1974, incorporating its prior “decision and entry” of July 11, 1973, and including the magic wording of Civil Rule 54(B), alluded to above. The trial court then entered a final judgment for thé de-, fendants.

The plaintiff again appealed to this court, setting forth the following assignments of error:

“1. The trial court erred in sustaining the motion to dismiss because failure to allow mandamus o-r mandatory injunction to compel payment for a property right-taken by the state violates Article I, Section 19 of the Ohio Constitution.
“2. The trial court erred in sustaining the motion tó dismiss because the doctrine of sovereign immunity violates the 5th and 14th Amendments to the Constitution of the United States.
“3. The trial court erred in sustaining the motion to dismiss because mandamus and mandatory injunction is the proper remedy to enforce a duty created under' a contract entered into by virtue of legislation which requires, payment upon performance.
“4. The trial, court erred in dismissing the case when there are still existing issues which are not resolved by the assertion of sovereign immunity. ’ ’

Even though the Complaint heroin names the director, of the Ohio Department of Public Welfare, and the director of the Stark County Department of Welfare, as the parties defendant, we must recognize that they have been-named as defendants in their .official capacities.- Further,, we believe that it cannot be seriously disputed that as- such these defendants are nominal parties only, and that the state of Ohio is the real párty in interest.

*32 Suits against state officials in their official capacities in essence are suits against the sovereign. State, ex rel. Williams, v. Glander (1947), 148 Ohio St. 188; State, ex rel. Wilson, v. Preston (1962), 173 Ohio St. 203.

Prior to January 1, 1975, the law in Ohio was clear that the state could not be sued for monetary relief without its consent. The much maligned “non-self-executing” portion of the Ohio Constitution in this regard is Article I, Section 16, which provides: ‘ ‘ Suits may be brought against the state, in such courts and in such manner, as may be provided by law. ’ ’

There has been a long line of cases here, as well as elsewhere, to the effect that a state’s position in holding itself immune from legal redress, on the ancient theory that “the king can do no wrong,” is not violative of the Fifth and Fourteenth Amendments to the United States Constitution. Krause v. State (1972), 31 Ohio St. 2d 132, is one of the most recent cases within this state upholding this historical immunity doctrine. This court recently discussed the subject in the case of Lehew v. Rhodes (1970), 23 Ohio App. 2d 102.

There have been many differing types of claims presented which have given our courts the opportunity to render variations of the theme of state immunity. There have been actions sounding in tort, actions for the enforcement of claimed rights to welfare payments, claims for compensation benefits of a various nature, and claims for labor and materials expended on behalf of the state with, as well as without, contract. In such cases, the courts have generally harmonized upon the familiar theme.

However, there has been a variation in the theme in the area of contracts entered into by individuals and the state. In this regard, this court, speaking through Judge Whiteside, stated in the unreported case of Gustav Hirsch Organizaion, Inc., v. Ohio State University, No. 74AP-275, decided December 17, 1974, as follows:

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335 N.E.2d 883, 44 Ohio App. 2d 29, 73 Ohio Op. 2d 18, 1975 Ohio App. LEXIS 5737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-canary-ohioctapp-1975.