Small World Early Childhood Ctr. v. Ohio Dept. of Job & Family Servs.

2017 Ohio 8336
CourtOhio Court of Appeals
DecidedOctober 27, 2017
Docket27448
StatusPublished
Cited by4 cases

This text of 2017 Ohio 8336 (Small World Early Childhood Ctr. v. Ohio Dept. of Job & Family Servs.) 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
Small World Early Childhood Ctr. v. Ohio Dept. of Job & Family Servs., 2017 Ohio 8336 (Ohio Ct. App. 2017).

Opinion

[Cite as Small World Early Childhood Ctr. v. Ohio Dept. of Job & Family Servs., 2017-Ohio-8336.]

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

SMALL WORLD EARLY CHILDHOOD : CENTER : : C.A. CASE NO. 27448 Plaintiff-Appellant : : T.C. NO. 16-CV-5982 v. : : (Civil Appeal from OHIO DEPT. OF JOB & FAMILY : Common Pleas Court) SERVICES : : Defendant-Appellee : :

...........

OPINION

Rendered on the 27th day of October, 2017.

JOHNNA M. SHIA, Atty. Reg. No. 0067685 and ANTHONY S. VanNOY, Atty. Reg. No. 67052, 130 W. Second Street, Suite 1624, Dayton, Ohio 45402 Attorney for Plaintiff-Appellant

REBECCA L. THOMAS, Atty. Reg. No. 0066650, Assistant Attorney General, Health and Human Services Section, 30 E. Broad Street, 26th Floor, Columbus, Ohio 43215 Attorney for Defendant-Appellee

............. -2-

FROELICH, J.

{¶ 1} Small World Early Childhood Center appeals from a judgment of the

Montgomery County Court of Common Pleas, which dismissed, pursuant to Civ.R.

12(B)(1), Small World’s administrative appeal of two decisions by the Ohio Department

of Jobs and Family Services (ODJFS). For the following reasons, the trial court’s

judgment will be affirmed.

I. Background and Procedural History

{¶ 2} Small World is a child daycare provider that had a contract with ODJFS to

provide publicly-funded child care. In the spring of 2015, ODJFS received allegations

that Small World was improperly in possession of Ohio Electronic Child Care (ECC) swipe

cards and that Small World’s staff was using the cards to check children into the center

when they were not actually in attendance. ODJFS conducted an investigation.

{¶ 3} According to the termination decision on appeal, ODJFS personnel

conducted a timed observation on April 23, 2015 and counted 62 children entering the

center between 6:00 a.m. and 7:00 a.m. During the same time, Ohio ECC records

showed 170 children were swiped in as having arrived at the center. ODJFS personnel

returned on May 21, 2015, and performed another timed observation between 6:00 a.m.

and 8:15 a.m. and observed 105 children arriving. Ohio ECC transactions for that same

period showed that Small World had 217 children swiped in as arriving and receiving care.

ODJFS staff entered the building and conducted a head-count; 108 children were present.

{¶ 4} ODJFS staff identified themselves to Small World staff, spoke to the owner,

and asked for permission to search the facility. ODJFS located 99 Ohio ECC swipe

cards. Interviews with Small World staff indicated that the center’s owner, administrator, -3-

and office managers used the swipe cards. ODJFS collected billing and attendance

records from Small World. ODJFS concluded that it had overpaid Small World by

$442,963.67.

{¶ 5} On April 15, 2016, ODJFS provided Small World with a written Child Care

Provider Investigative Report, recommending suspension and termination of the Provider

Agreement, as well as a Proposed Suspension and Termination of Provider Agreement

and Overpayment Collection Notice. (The investigative report and the notice are not part

of the record.) On April 20, 2016, Small World filed an appeal of the suspension and

termination decision with ODJFS. The same day, it sought reconsideration by ODJFS

of the overpayment calculation.

{¶ 6} On November 16, 2016, ODJFS sent two decision letters to Small World, one

of which denied Small World’s appeal of the suspension and termination decision and the

other denying reconsideration of the overpayment calculation. The reconsideration

decision expressly stated that the “reconsideration decision is final and not subject to

further review by the department.” The letter informing Small World of the suspension

and termination decision similarly stated, “This appeal decision is final and not subject to

further review by the department.” Both determinations were made by the bureau chief

of ODJFS’s Office of Fiscal and Monitoring Services, Monitoring and Consulting Services

Division.

{¶ 7} On November 22, 2016, Small World filed a notice of appeal, pursuant to

R.C. 119.12 and R.C. 5101.35, in the Montgomery County Court of Common Pleas.

Small World claimed that both ODJFS decisions were “not supported by reliable,

probative, and substantial evidence and [were] not in accordance with law.” Small World -4-

filed motions to stay the ODJFS decisions and for court-ordered mediation. The court

denied both motions.

{¶ 8} On December 19, 2016, ODJFS moved to dismiss the appeal for lack of

jurisdiction, pursuant to Civ.R. 12(B)(1). ODJFS argued that the decisions on appeal

were not “adjudications” by an “agency” for purposes of R.C. Chapter 119, nor was this

the type of matter that triggered rights conferred or duties imposed under that chapter.

ODJFS further argued that R.C. 5101.35 provided no statutory authority for an appeal of

the two decisions. Small World opposed the motion.

{¶ 9} On January 26, 2017, the trial court agreed with ODJFS and granted the

motion to dismiss for lack of jurisdiction. Small World appeals the trial court’s decision.

II. Jurisdiction to Small World’s Administrative Appeal

{¶ 10} In its sole assignment of error, Small World claims that “[t]he trial court erred

when it dismissed Small World’s Administrative Appeal because Small World was entitled

to judicial review pursuant to the Ohio Revised Code.”

{¶ 11} A motion to dismiss for lack of subject matter jurisdiction, pursuant to Civ.R.

12(B)(1), challenges whether the complaint raises any cause of action cognizable by the

forum. State ex rel. Ohio Civ. Serv. Emps. Assn. v. State, 146 Ohio St.3d 315, 2016-

Ohio-478, 56 N.E.3d 913, ¶ 12. We review de novo the trial court’s dismissal of Small

World’s administrative appeal for lack of jurisdiction. See id.; Crawford v. United Dairy

Farmers, Inc., 2d Dist. Montgomery No. 25786, 2013-Ohio-5047, ¶ 8.

{¶ 12} “It is well-settled law that a state is not subject to suit in its own courts unless

it expressly consents to be sued.” Proctor v. Kardassilaris, 115 Ohio St.3d 71, 2007-

Ohio-4838, 873 N.E.2d 872, ¶ 7. Since 1913, the Ohio Constitution has provided that -5-

“[s]uits may be brought against the state, in such courts and in such manner, as may be

provided by law.” Ohio Constitution, Article I, Section 16. However, this constitutional

provision “did not provide specific consent for every state entity to be sued in every state

court. Rather, it merely enabled the state to pass statutes consenting to be sued in

specific ways; unless an explicit statutory waiver exists, the presumption of sovereign

immunity applies.” (Citations omitted.) Proctor at ¶ 8.

{¶ 13} Article IV, Section 4(B) of the Ohio Constitution grants the Ohio legislature

exclusive authority to define the jurisdiction of the courts of common pleas. Article IV,

Section 4(B) provides, in relevant part, that courts of common pleas have “such powers

of review of proceedings of administrative officers and agencies as may be provided by

law.”

A. R.C. Chapter 5104

{¶ 14} We begin with a review of the relevant portions of R.C. Chapter 5104, the

chapter under which Small World contracted with ODJFS to receive public funds for child

daycare. (Pursuant to R.C.

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