New England Outdoor Center v. Commissioner of Inland Fisheries & Wildlife

2000 ME 66, 748 A.2d 1009
CourtSupreme Judicial Court of Maine
DecidedApril 14, 2000
StatusPublished
Cited by8 cases

This text of 2000 ME 66 (New England Outdoor Center v. Commissioner of Inland Fisheries & Wildlife) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Outdoor Center v. Commissioner of Inland Fisheries & Wildlife, 2000 ME 66, 748 A.2d 1009 (Me. 2000).

Opinion

CLIFFORD, J.

[¶ 1] New England Outdoor Center and other whitewater outfitters (collectively NEOC) appeal from a judgment of the Superior Court (Kennebec County, Studstrup, J.) dismissing its appeal, brought pursuant to M.R. Civ. P. 80C, of a decision of the Commissioner of Inland Fisheries and Wildlife. The Commissioner determined that the parties-in-interest, Adventure Bound, Inc. and Northern Outdoors, Inc., were not “affiliated outfitters” within the meaning of 12 M.R.S.A. § 7363(2) (Supp.1999),2 and declined to take further action to seek revocation of their licenses as commercial outfitters. See 12 M.R.S.A. § 7365 (1994 & Supp.1999). NEOC contends that the court erred when it dismissed the appeal ’ based on the court’s determination that the Commissioner’s decision was not a final agency action within the meaning of 5 M.R.S.A. §§ 11001-11008 (1989) and M.R. Civ. P. 80C. NEOC also contends that the Commissioner’s decision was arbitrary and capricious and a. misapplication of law. It further claims that it had a due process right to a hearing because the Commissioner’s decision effectively deprives it of a property right to be free from unfair competition in violation of 12 ■ M.R.S.A. § 7369(2) (Supp.1999).3 We affirm the Su[1011]*1011perior Court’s judgment of dismissal on the alternative ground that it is within the discretion of the Commission to not pursue license revocation actions against Adventure Bound and Northern Outdoors.

[¶ 2] NEOC, Adventure Bound, and Northern Outdoors all operate whitewater rafting businesses on the Kennebec River. As such, they are subject to the Commercial Whitewater Rafting Act, 12 M.R.S.A. §§ 7361-7370 (1994 & Supp.1999). The commercial outfitters subject to the Act are licensed, see 12 M.R.S.A. § 7365, and the Act limits the total number of passengers on the Kennebec River and the West Branch Penobscot River, see 12 M.R.S.A. § 7368. The Act limits the amount of passengers each outfitter can carry on a given day. See 12 M.R.S.A. § 7369(2). Affiliated outfitters, as defined in section 7363(2), are prohibited from operating simultaneously on “any river or stretch of river for which a specific allocation [of passengers per day] is required, even on days for which an allocation is not required.” 12 M.R.S.A § 7369(2).

[¶3] In 1998, NEOC wrote a letter to the Commissioner asking him to investigate whether Adventure Bound and Northern Outdoors were “affiliated outfitters” within the meaning of 12 M.R.S.A. § 7363(2). NEOC alleged that Adventure Bound and Northern Outdoors were affiliated, and that therefore their simultaneous operation on the Kennebec River between Harris Station and the Route 201 bridge was in violation of 12 M.R.S.A. § 7369(2). NEOC based its allegation on the contention that, although Adventure Bound and Northern Outdoors may ostensibly have been set up to avoid the ten percent stock ownership limit set out in section 7363(2), the companies nevertheless were under the control of a single party, namely, Wayne Hockmeyer.4 NEOC’s letter concluded with a request that it be involved in the investigation and asked that it be allowed access to documents having a bearing on the affiliated outfitter status of Adventure Bound and Northern Outfitters.

[¶ 4] In response to NEOC’s request, the Commissioner appointed an investigator, and asked Adventure Bound and Northern Outdoors to disclose “any and all documentation and factual information which will substantiate previous assurances that both companies are in full compliance with affiliation provisions of the Maine Commercial Whitewater Rafting Act.” NEOC addressed a letter to the investigator illustrating its understanding of the Act, and made specific suggestions regarding the evidence it felt the investigator should seek. In this letter, NEOC again requested that it be involved in the investigation, and formally requested a public hearing “to determine whether the Department should file a complaint in Administrative Court to revoke the licenses [1012]*1012of the two companies by reason of the affiliation.”

[¶ 5] After receiving and reviewing substantial written submissions from Adventure Bound and Northern Outdoors, but without conducting a public hearing, the Commissioner responded to the complaint by letter to counsel for NEOC on September 8, 1998. The Commissioner indicated that the evidence presented did not demonstrate that Adventure Bound and Northern Outdoors were “affiliated outfitters.” Noting that his letter did not constitute a “final agency action,” the Commissioner stated that, despite NEOC’s contention that the definition of “affiliated outfitter” is. broad, the Commissioner had applied the plain language of 12 M.R.S.A. § 7363(2) in its determination the two outfitters were not affiliates. The Commissioner indicated that he understood NEOC not to contend that there were any violations of subsections A, B, or C of section 7363(2), and he therefore focused his discussion on subsection D. As the Commissioner interpreted that subsection, an inquiry into whether transactions between outfitters were at arm’s length becomes necessary only if it is shown that one outfitter had received more than half of its services or real or personal property from the other. Because there was no evidence that either Adventure Bound or Northern Outdoors had obtained more than one-half of their services or property from the other, the Commissioner felt it was unnecessary to proceed further with NEOC’s complaint until such evidence was produced. The Commissioner also noted that no provision in the Act required revocation of the licenses of Adventure Bound and Northern Outdoors even in the event the companies were “affiliated outfitters.” The statute prohibits only their simultaneous operation on any stretch of the river.

[¶ 6] On October 7, 1998, NEOC requested reconsideration of the Commissioner’s decision. NEOC denied that it had not challenged the relationship between Adventure Bound and Northern Outdoors on grounds of section 7363(2)(A), (B), and (C), and asserted that the Commissioner’s response to its complaint not only unfairly placed a burden of production on it but also “fail[ed] to recognize the burdens ... on the constitutionally protected rights of the complainants.” Pointing to 12 M.R.S.A. § 7363(8), NEOC alleged that the Commissioner had failed to properly inquire into whether Wayne Hockmeyer owned some kind of “beneficial interest” in some “form of business association” that would trigger the 10% ownership limitation. From this, NEOC contended, the Commissioner was required by the statutory language “to scrutinize [the companies’ relationship’s] substance and reality,” and that such scrutiny required an independent investigation. NEOC also alleged that it was unfair to essentially require it to produce evidence of affiliation when the Commissioner had refused its request for an independent investigation and for a hearing. NEOC further contended that the unfair competitive advantage that Adventure Bound and Northern Outdoors retained as a result of the Commissioner’s inaction deprived it of a cognizable property right in violation of due process under both the Maine and United States Constitutions.

[¶ 7] In response, on October 20, 1998, the Commissioner indicated that his interpretation of the Act had not changed and noted that the evidence before him remained the same. He therefore refused NEOC’s request'that an investigatory procedure be developed to further pursue the matter.

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2000 ME 66, 748 A.2d 1009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-outdoor-center-v-commissioner-of-inland-fisheries-wildlife-me-2000.