Pen-Nor, Inc. v. Oregon Department of Higher Education

734 P.2d 395, 84 Or. App. 502
CourtCourt of Appeals of Oregon
DecidedMarch 25, 1987
DocketCA A40410; CA A40411
StatusPublished
Cited by4 cases

This text of 734 P.2d 395 (Pen-Nor, Inc. v. Oregon Department of Higher Education) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pen-Nor, Inc. v. Oregon Department of Higher Education, 734 P.2d 395, 84 Or. App. 502 (Or. Ct. App. 1987).

Opinion

YOUNG, P. J.

Respondents Oregon Department of Higher Education and Oregon State Board of Higher Education (SBHE) move to dismiss two petitions for review for lack of jurisdiction. We consolidate the cases and allow the motions.

Petitioner, a certified minority business enterprise (MBE), submitted bids to prime contractors that had bid on a construction project for Portland State University. The prime contract was awarded to respondent Hyland & Sons, Inc. (Hyland), which did not select petitioner as a subcontractor. Petitioner was orally notified that the respondent state agencies had determined that Hyland had made a “good faith effort” to meet the MBE goals and had awarded it the contract. Petitioner filed two petitions for review challenging that action.

In A40410, petitioner seeks review of a “rule,” asserting that SBHE adopted a general standard to the effect that a “good faith effort” does not require negotiating with MBEs. In its companion petition (A40411), petitioner purports to seek review of an order, arguing that SBHE’s determination that Hyland met the “good faith effort” requirement was a final order subject to review as a contested case.

In A40411, SHBE concedes that the construction contract award to Hyland is an “order” as defined by ORS 183.310(5)(a), which provides: [505]*505If the award is an order, as SBHE concedes, it is also final for purposes of the APA, because it is an “agency action expressed in writing” and is not a tentative or preliminary decision. ORS 183.310(5)(b); see, e.g., Fitzgerald v. Oregon Bd of Optometry, 75 Or App 390, 706 P2d 586 (1985).

[504]*504“ ‘Order’ means any agency action expressed orally or in writing directed to a named person or named persons, other than employes, officers or members of an agency. ‘Order’ includes any agency determination or decision issued in connection with a contested case proceeding. ‘Order’ includes:
“(A) Agency action under ORS chapter 657 making determination for purposes of unemployment compensation of employes of the state; and
“(B) Agency action under ORS chapter 240 which grants, denies, modifies, suspends or revokes any right or privilege of an employe of the state.
“(b) ‘Final order’ means final agency action expressed in writing. ‘Final order’ does not include any tentative or preliminary agency declaration or statement that:
“(A) Precedes final agency action; or
“(B) Does not preclude further agency consideration of the subject matter of the statement or declaration.”

[505]*505Our authority to review orders under the APA, however, is limited to those made in contested cases. ORS 183.480 and ORS 183.482. Otherwise, a petitioner must seek review in the circuit court. ORS 183.484. No hearing was provided in this case, even though petitioner requested one. In Patton v. St. Bd. Higher Ed., 293 Or 363, 367, 647 P2d 931 (1982), the court held that our jurisdiction is not determined by whether a contested case hearing was held, but rather by whether the controversy qualified as a contested case under ORS 183.310(2):

“(2)(a) ‘Contested case’ means a proceeding before an agency: v
“(A) In which the individual legal rights, duties or privileges of specific parties are required by statute or Constitution to be determined only after an agency hearing at which such specific parties are entitled to appear and be heard;
“(B) Where the agency has discretion to suspend or revoke a right or privilege of a person;
“(C) For the suspension, revocation or refusal to renew or issue a license where the licensee or applicant for a license demands such hearing; or
“(D) Where the agency by rule or order provides for hearings substantially of the character required by ORS 183.415, 183.425,183.450,183.460 and 183.470.
“(b) ‘Contested case’ does not include proceedings in which an agency decision rests solely on the result of a test.”

Petitioner argues that, because the agency is mandated by ORS 279.0591 to determine whether a general con[506]*506tractor has met nine statutory criteria in determining whether good faith has been exercised, an MBE which is economically injured by the agency’s decision is entitled to a contested case hearing. Petitioner does not state what category of contested case it believes it falls into; rather it cites Patton v. St. Bd. Higher Ed., supra, for its contention. In Patton, the petitioner’s claim fell within ORS 183.310(2)(a)(B), because the director of student health services had placed the petitioner on mandatory medical leave, which constituted suspending or revoking the student’s privilege to attend the university. See Patton v. St. Bd. Higher Ed., 59 Or App 477, 480, 651 P2d 169 (1982). In this case, no specific right or privilege was revoked. The process simply failed to yield petitioner a subcontract. ORS 183.310(2)(a)(B) does not apply to petitioner’s claim in [507]*507this case. Petitioner does not assert that its case falls within any of the other contested case categories, and the facts do not indicate that it does. We conclude, therefore, that we lack jurisdiction to review SBHE’s action under ORS 183.480 and ORS 183.482.2

In A40410, petitioner argues that SBHE adopted a rule subject to our review under ORS 183.400, which provides in relevant part:

“(1) The validity of any rule may be determined upon a petition by any person to the Court of Appeals in the manner provided for review of orders in contested cases.

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Cite This Page — Counsel Stack

Bluebook (online)
734 P.2d 395, 84 Or. App. 502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pen-nor-inc-v-oregon-department-of-higher-education-orctapp-1987.