Russo v. Department of Licensing & Regulation

326 N.W.2d 583, 119 Mich. App. 624
CourtMichigan Court of Appeals
DecidedSeptember 21, 1982
DocketDocket 57298
StatusPublished
Cited by18 cases

This text of 326 N.W.2d 583 (Russo v. Department of Licensing & Regulation) 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
Russo v. Department of Licensing & Regulation, 326 N.W.2d 583, 119 Mich. App. 624 (Mich. Ct. App. 1982).

Opinion

J. H. Gillis, P.J.

Petitioner appeals as of right a circuit court order affirming the respondent’s revocation of plaintiff’s license to practice osteopathic medicine and surgery.

On July 13, 1978, the attorney general filed a complaint with the defendant Board of Osteopathic Medicine and Surgery (hereinafter the board) charging that petitioner, Joseph John Russo, had illegally dispensed controlled substances. On the day the complaint was filed, the board summarily suspended petitioner’s license pending a hearing, based on a finding that the continued practice of osteopathic medicine by petitioner would constitute "a threat to the public health, safety and welfare which requires emergency action”. 1

Upon petitioner’s petition in the Macomb County Circuit Court, the court issued a preliminary injunction staying enforcement of the summary suspension until such time as a final order was entered by the board. 2

Hearings were held before an administrative law examiner. Following the hearings, the examiner issued recommended findings of fact and conclusions of law finding that petitioner had violated *627 minimum standards of care in dispensing controlled substances in violation of former MCL 338.109(1), subds (m) and (n); MSA 14.579(1), subds (m) and (n). 3 By order of July 16, 1979, the board adopted the examiner’s findings of fact and conclusions of law and ordered petitioner to surrender his license.

Petitioner then sought judicial review in the Macomb County Circuit Court. On March 11, 1981, the circuit court entered its opinion and order affirming the decision of the board. Petitioner appeals.

Petitioner first argues that he was denied a fair hearing under Const 1963, art 1, § 17, because the accusatory, investigative and adjudicative powers in license revocation matters all reside in the same governmental agency, namely, the Department of Licensing and Regulation (hereinafter the department). Additionally, petitioner asserts that the board’s issuance of an ex parte summary suspension reversibly tainted its ultimate decision in the case. Petitioner’s second argument, which is closely related to the first, asserts that §§ 71 through 92 of the Administrative Procedures Act (APA), MCL 24.271-24.292; MSA 3.560(171)- *628 3.560(192), are unconstitutional because they require that the hearing on the charges against the petitioner be conducted before the same "agency” which investigated the case and summarily suspended petitioner’s license.

We disagree with petitioner’s arguments, primarily because they ignore the fact that the investigative and adjudicative functions were performed by separate and independent divisions of the department.

It is well established that combining the investigative and adjudicative roles in a single governmental agency does not necessarily violate due process. In the Matter of Del Rio, 400 Mich 665, 690; 256 NW2d 727 (1977), app dis 434 US 1029; 98 S Ct 759; 54 L Ed 2d 777 (1978); Automotive Service Councils of Michigan v Secretary of State, 82 Mich App 574, 586; 267 NW2d 698 (1978), lv den 403 Mich 810 (1978), app dis 439 US 973; 99 S Ct 554; 58 L Ed 2d 645 (1978).

The complaint in this matter was filed by the attorney general pursuant to 1979 AC, R 338.114(2). The complaint was based on the results of an investigation performed by undercover drug investigators employed by (or in cooperation with) the Diversion Investigation Unit, which is an arm of the Department of Licensing and Regulation. The board, which is another independent arm of the department, then issued a summary suspension based on the complaint and affidavits submitted by persons familiar with the facts. See 1979 AC, R 338.112. 4 Full hearings were subsequently *629 held before the administrative law examiner, whose recommendations were then adopted by the board.

We find no indication in the record that the board accused or investigated the charges against petitioner. Indeed, the rules promulgated by the department contain provisions designed to prevent the commingling of the accusatory, investigative and adjudicative functions. For example, 1979 AC, R 338.111 provides:

"The board or its authorized representative may authorize investigations and may issue complaints for apparent violations of the act. Any member of the board who takes an active part in the investigatory or accusatory process shall not participate in deciding the contested case unless necessary to assure the availability of the forum, in which event disclosure of the member's participation in the investigatory or accusatory process shall be made on the record.” (Emphasis supplied.)

Moreover, 1979 AC, R 338.112, which authorizes the board to issue an ex parte order summarily suspending a license pending a hearing, contains the following protection:

"The taking of emergency action shall not aifect the impartiality of the board in its receipt and consideration of the evidence.”

The APA, §82, MCL 24.282; MSA 3.560(182), also provides protection against an agency’s com *630 mingling of investigative and adjudicative functions. Section 82 provides in pertinent part:

"Unless required for disposition of an ex parte matter authorized by law, a member or employee of an agency assigned to make a decision or to make findings of fact and conclusions of law in a contested case shall not communicate, directly or indirectly, in connection with any issue of fact, with any person or party, nor, in connection with any issue of law, with any party or his representative, except on notice and opportunity for all parties to participate. This prohibition begins at the time of the notice of hearing. An agency member may communicate with other members of the agency and may have the aid and advice of the agency staff other than the staff which has been or is engaged in investigating or prosecuting functions in connection with the case under consideration or a factually related case.” (Emphasis supplied.)

We also observe that the APA provides a procedure whereby a party who has reason to believe that the adjudicating officer’s impartiality has been tainted can move for disqualification. MCL 24.279; MSA 3.560(179). Petitioner did not invoke the disqualification procedure in this case.

Based upon our review of the record and briefs, we conclude that petitioner has failed to carry his burden of proving that the board was involved in the accusatory or investigative stages of this case. We conclude that petitioner was not denied a fair hearing and that APA sections 71 through 92 are not unconstitutional.

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Bluebook (online)
326 N.W.2d 583, 119 Mich. App. 624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russo-v-department-of-licensing-regulation-michctapp-1982.