Palo Group v. Dss

577 N.W.2d 200
CourtMichigan Court of Appeals
DecidedMay 5, 1998
Docket195227
StatusPublished

This text of 577 N.W.2d 200 (Palo Group v. Dss) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palo Group v. Dss, 577 N.W.2d 200 (Mich. Ct. App. 1998).

Opinion

577 N.W.2d 200 (1998)

PALO GROUP FOSTER CARE, INC., Petitioner-Appellant,
v.
MICHIGAN DEPARTMENT OF SOCIAL SERVICES, Respondent-Appellee.

Docket No. 195227.

Court of Appeals of Michigan.

Submitted February 4, 1998, at Grand Rapids.
Decided February 20, 1998, at 9:00 a.m.
Released for Publication May 5, 1998.

*201 Hess & Hess P.C. by John H. Hess, Grand Rapids, for Petitioner-Appellant.

Frank J. Kelley, Attorney General, Thomas L. Casey, Solicitor General, H. Daniel Beaton, Jr., Assistant Attorney General, for Respondent-Appellee.

Before HOOD, P.J., and MacKENZIE and MURPHY, JJ.

PER CURIAM.

Petitioner, Palo Group Foster Care, Inc., appeals, by leave granted, an order of the circuit court. That order affirmed an administrative agency decision by respondent, Michigan Department of Social Services, that denied renewal of petitioner's adult foster care facility license. We affirm.

In 1981, petitioner was licensed to operate a twenty-bed adult foster care home in Kent County, Michigan. Petitioner received regular, two-year renewals of its license in 1983, 1985, 1987, 1989, and 1991. In April 1993, however, petitioner was advised that its license would not be renewed. In May, an informal conference was held pursuant to respondent's internal policy manual, known as memorandum DOP 84-05. On June 18, 1993, the director of respondent's Bureau of Regulatory Services mailed to the petitioner a notice of the decision to refuse to renew petitioner's license.

Respondent refused to renew petitioner's license pursuant to § 22(1) of the Adult Foster Care Facility Licensing Act, M.C.L. § 400.722(1); M.S.A. § 16.610(72)(1). That section provides that the respondent may refuse to renew a license if the licensee has *202 wilfully and substantially violated the act or the rules promulgated under the act. In refusing to renew petitioner's license, respondent relied on three license violation complaint investigation reports, which alleged various violations of respondent's rules between December 1992 and February 1993. The complaints alleged, among other things, financial exploitation of a resident, failure to provide medication, and failure to provide dry clothing for a resident who was incontinent. Respondent also relied on several previous violations dating back to the mid-1980s. After a hearing, a hearing referee concluded that respondent had established the majority of the "willful and substantial" alleged violations.

Respondent's decision was stayed pending administrative appeal and subsequent appeal to the circuit court. The circuit court ultimately dissolved the stay upon affirming the administrative agency decision. This Court granted leave to appeal, but denied petitioner's request for a stay. Consequently, petitioner's foster care facility has been closed since May 31, 1996.

I

Petitioner first argues that because the appeal to the circuit court was based on § 25 of the Adult Foster Care Facility Licensing Act, M.C.L. § 400.725; M.S.A. § 16.610(75), the circuit court was obliged to engage in review de novo on appeal. Section 25 provides, in relevant part:

A person aggrieved by the decision of the director following a hearing under section M.C.L. § 400.722; M.S.A. § 16.610(72) or M.C.L. § 400.723; M.S.A. § 16.610(73), within 10 days after receipt of decision, may appeal to the circuit court for the county in which the person resides by filing with the clerk of the court an affidavit setting forth the substance of the proceedings before the department and the errors of law upon which the person relies, and serving the director with a copy of the affidavit. The circuit court shall have jurisdiction to hear and determine the questions of fact or law involved in the appeal. [Emphasis added.]

In response, respondent maintains that judicial review of the administrative agency's findings of fact is limited to the "competent, material and substantial evidence" standard set forth in the Michigan Administrative Procedures Act (APA), M.C.L. § 24.201 et seq.; M.S.A. § 3.560(101) et seq., and Const. 1963, art. 6, § 28.

Const. 1963, art. 6, § 28 provides, in relevant part:

All final decisions, findings, rulings and orders of any administrative officer or agency existing under the constitution or by law, which are judicial or quasi-judicial and affect private rights or licenses, shall be subject to direct review by the courts as provided by law. This review shall include, as a minimum, the determination whether such final decisions, findings, rulings and orders are authorized by law; and, in cases in which a hearing is required, whether the same are supported by competent, material and substantial evidence on the whole record. [Emphasis added.]

The scope of review provided by § 106 of the APA provides, in relevant part:

(1) Except when a statute or the constitution provides for a different scope of review, the court shall hold unlawful and set aside a decision or order of an agency if substantial rights of the petitioner have been prejudiced because the decision or order is any of the following:
* * * * * *
(d) Not supported by competent, material and substantial evidence on the whole record. [M.C.L. § 24.306; M.S.A. § 3.560(206). Emphasis added.]

No Michigan court has previously decided the question of the appropriate standard for a circuit court's review under M.C.L. § 400.725; M.S.A. § 16.610(75). The appropriate standard of review is a question of law, which we review de novo on appeal. Rapistan Corp. v. Michaels, 203 Mich.App. 301, 306, 511 N.W.2d 918 (1994). A litigant seeking judicial review of a decision by an administrative agency has three potential avenues of relief: (1) the review prescribed in the statute applicable to the particular agency; *203 (2) an appeal pursuant to the Revised Judicature Act, M.C.L. § 600.631; M.S.A. § 27A.631, and Const. 1963, art. 6, § 28; or (3) the method of review provided by the APA. Living Alternatives for the Developmentally Disabled, Inc. v. Dep't of Mental Health, 207 Mich.App. 482, 484, 525 N.W.2d 466 (1994).

Respondent is correct that under the APA the specified standard for judicial review is not de novo. Michigan Waste Systems v. Dep't of Natural Resources, 147 Mich.App. 729, 735, 383 N.W.2d 112 (1985). Contrary to respondent's argument, however, nothing in the APA or the Michigan Constitution precludes the Legislature from providing for review de novo in the circuit court. In fact, § 28 of article 6 of the constitution merely establishes the minimum review to be applied, without forbidding more stringent review, and the standard of review set forth at § 106 of the APA, expressly does not apply "when a statute ... provides for a different scope of review...."

We conclude that the language in M.C.L. § 400.725; M.S.A. § 16.610(75), providing that on appeal from an administrative agency decision under the act, the circuit court

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Palo Group Foster Care, Inc. v. Department of Social Services
577 N.W.2d 200 (Michigan Court of Appeals, 1998)

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577 N.W.2d 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palo-group-v-dss-michctapp-1998.