Ryan Homes, Inc. v. Ohio Department of Industrial Relations

506 N.E.2d 293, 30 Ohio App. 3d 68, 30 Ohio B. 123, 1986 Ohio App. LEXIS 10048
CourtOhio Court of Appeals
DecidedDecember 18, 1986
Docket86AP-177
StatusPublished

This text of 506 N.E.2d 293 (Ryan Homes, Inc. v. Ohio Department of Industrial Relations) 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
Ryan Homes, Inc. v. Ohio Department of Industrial Relations, 506 N.E.2d 293, 30 Ohio App. 3d 68, 30 Ohio B. 123, 1986 Ohio App. LEXIS 10048 (Ohio Ct. App. 1986).

Opinion

Whiteside, J.

Defendants, state of Ohio, Department of Industrial Relations, Board of Building Standards, et al., appeal from a declaratory judgment of the Franklin County Court of Common Pleas declaring Ohio Adm. Code 4101:2-23-99 to be invalid because it conflicts with R.C. 3781.10. In support of their appeal, defendants have raised a single assignment of error as follows:

“The trial court erred in striking down Rule 4101:2-23-99 because said rule is not in conflict with R.C. Section 3781.10; and, because the promulgation of said rule is expressly authorized in Section 3781.10(A) as ‘necessary or desirable to effectuate the purposes of [sections 3781.06 [to] 3781.18’ pertaining to industrialized units.”

In the judgment entry, the trial court stated in part:

“Rule 4101:2-23-99 creates a distinction between ‘open’ and ‘closed’ construction and limits Board approval of an industrialized unit to only those portions which are ‘closed construction’ i.e. concealed and not readily accessible for inspection at the site of erection, without disassembly, damage or destruction. * * * This condition of ‘closed construction’ is not provided in nor [sic] contemplated by the statutory definition of industrialized unit found under R.C. 3781.10.* * *”

*69 Upon request, the trial court did make findings of fact and conclusions of law, the findings of fact consisting solely of: (1) adoption by reference of paragraphs one to thirteen of the stipulations filed by the parties; (2) quotation of R.C. 3781.10 and Ohio Adm. Code 4101:2-23-99(C); and (3) a statement that the rule includes the condition of “closed construction” while the statute does not contain such a limitation.

The stipulations indicate that plaintiff, Ryan Homes, Inc., filed a petition with the board on June 17,1982, seeking “to use special materials, assemblages and methods of manufacture in connection with the production of its new ranch model, the ‘Caroline.’ ” A revised petition was adopted by the board on October 28, 1982, including only “items, units or assemblies which the Board considers to be ‘closed construction,’ ” necessarily excluding “open construction,” which is indicated by the stipulations “to be items, units or assemblies, including, but not limited to, open wall interior panels, roof trusses, roof sheathing, exposed wiring harnesses, and plumbing that connects factory fabricated cores to city sewer and water supplies.”

Earlier, plaintiff had submitted a petition on September 22,1981, seeking to amend Ohio Adm. Code 4101:2-23-99 to provide that:

“The complete approved package of the industrialized units may, in addition to the closed construction, contain specifically evaluated and approved supplemental, structural, mechanical, plumbing or electrical components making up the envelope or contained within the envelope.”

Hearings were held by the board on the petition to amend the rule, at which plaintiff presented evidence. On November 4, 1982, the board denied the petition to amend the rule by an order indicating the petition to amend was “denied because the weight of the testimony and evidence at the hearings shows that the proposed change is not in the public interest,” and that the board lacks statutory authority to adopt the proposed language. At no time thereafter did plaintiff object in writing to the board or request a hearing before the board concerning the refusal to amend the rule.

Predicated upon this evidence, the common pleas court not only declared the rule to be invalid but also included a finding in the judgment entry that “Ryan Homes’ products constitute industrialized units under R.C. 3781.10 and are subject to the definitions therein contained.” There is no evidence in the record on appeal supporting such a conclusion, there being no evidence as to whether plaintiff’s products constitute industrialized units within the contemplation of R.C. 3781.10. Nevertheless, the primary issue before this court is whether the trial court erred in declaring the rule to be unconstitutional as being in conflict with R.C. 3781.10. As amended effective July 1, 1979, Ohio Adm. Code 4101:2-23-99(A) included the following:

“Note 2. ‘Closed construction’ as used herein means an assembly of materials or products manufactured in such a manner that its structural, plumbing, electrical, environmental control, or fire protection elements or components are concealed and are not readily accessible for inspection at the site of its erection, without disassembly, damage, or destruction.”

Ohio Adm. Code 4101:2-23-99(C) read as follows:

“(C) 2300.4 Industrialized units: Industrialized units of closed construction are required to be authorized by the board of building standards in accordance with Chapter 4101:2-1 of the Administrative Code prior to the issuance of local building permit or placement in Ohio. The inherent concept of industrialized units involves substantial comple *70 tion or fabrication of a unit or assembly of closed construction at a location remote from the site of intended use and requires transportation to a building site for its subsequent use as regulated by this code.
“(1) The parameters for industrialized units of closed construction may be summarized as follows:
“(a) Fabrication remote from the site of intended use;
“(b) Assembly or construction which obviates normal inspection for code compliance at the site of intended use;
“(c) Requiring transportation to the site of intended use.
“(2) Within these parameters, such generic terms as heart modules or cores, modules, modulars, service cores, prefabs, sectional or sectionalized, panels or panelized construction and such specific terms as ‘prefabricated-subassembly, -building, -unit, -unit service equipment’ as defined in OBBC shall be considered industrialized units. They may be self-sufficient or interdependent as a unit or group of units and used together or incorporated with standard construction methods to form a completed structural entity.”

During the pendency of these proceedings in the trial court, Ohio Adm. Code 4101:2-23-99 was amended effective March 1, 1985, and now exists as Ohio Adm. Code 4101:2-1-55, with Ohio Adm. Code 4101:2-1-55(0) being substantially the equivalent of Note 2 of former Ohio Adm. Code 4101:2-23-99 (A), and present Ohio Adm. Code 4101:2-1-55(B) and (C) together being substantially the same as former Ohio Adm. Code 4101:2-23-99(C). Hereinafter, references will be to the present provisions of the Ohio Administrative Code, rather than to those referred to by the trial court and the parties since the issue before us is necessarily the validity of the present code, rather than the former, since there appears to be no significant change in meaning.

The primary issue before us is whether the rule is invalid as being in conflict with the last paragraph of R.C. 3781.10, which provides that:

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506 N.E.2d 293, 30 Ohio App. 3d 68, 30 Ohio B. 123, 1986 Ohio App. LEXIS 10048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-homes-inc-v-ohio-department-of-industrial-relations-ohioctapp-1986.