Stansberry v. Howard

758 N.E.2d 540, 2001 Ind. App. LEXIS 1955, 2001 WL 1419360
CourtIndiana Court of Appeals
DecidedNovember 14, 2001
Docket48A02-0104-CV-241
StatusPublished
Cited by4 cases

This text of 758 N.E.2d 540 (Stansberry v. Howard) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stansberry v. Howard, 758 N.E.2d 540, 2001 Ind. App. LEXIS 1955, 2001 WL 1419360 (Ind. Ct. App. 2001).

Opinion

OPINION

KIRSCH, Judge.

The Madison County Office of Family and Children ("OFC"), the Division of Family and Children ("Division"), the Indiana Family and Social Services Administration ("FSSA"), and the Indiana Attorney General (collectively referred to as "the State") appeal the trial court's decision to reverse the FSSA's final agency action denying Wendy Howard ("Howard") a license to operate a child care home. On appeal, the State raises the following restated issue: whether the trial court erred in finding that the FSSA acted in a manner that was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law when it denied Howard's request for a child care home license on the basis of her husband's felony convictions.

We affirm in part, reverse in part, and remand to the trial court for further action consistent with this opinion.

FACTS AND PROCEDURAL HISTORY

Howard began operating a childeare business in her Anderson, Indiana home without first obtaining a license. In re *543 sponse to a complaint that she was unlicensed, Howard applied to the OFC for a license to operate as 'a child care home pursuant to IC 12-17.2-5. Her application requested a license to care for a maximum of thirty children, twenty-four hours per day, seven days per week. As part of the licensing procedure, Howard revealed that in 1994 her husband Henry Howard ("Henry") was convicted of three counts of burglary, as Class C felonies, and three counts of theft, as Class D felonies. Appellants' Appendix at 11, 31. All of these convictions arose from a single incident at a business construction site. Id. at 11, 38. On September 1, 1997, Henry was released from prison after serving a three-and-one-half year sentence. He completed probation on September 1, 1998.

On the recommendation of the OFC, the Division denied Howard's request for a license to operate a child care home. The Division reasoned that state law provides for the "denial of a child care home license if the applicant's spouse or other household member has a felony (or misdemean- or relating to the health and safety of children) conviction." Id. at 85. Having found that Henry-a spouse and occasional helper at the home-was a convicted felon, the Division concluded that denial was appropriate. Id. Howard appealed the denial to the FSSA who in turn assigned the appeal to an administrative law judge ("ALJ"). The ALJ heard the appeal in the spring of 2000 and determined that the denial of licensure could not be sustained based on the evidence. Id. at 71-75. The OFC appealed to the FSSA who, in a final agency action, denied Howard a child care home license. Id. at 87.

Howard sought judicial review and argued before the trial court that the FSSA was arbitrary and capricious, or otherwise acted in violation of the law when it denied her license. The trial court agreed, finding that the OFC was inflexible in conelud-ing that Henry's felony conviction alone supported denial of a license. The State now appeals.

DISCUSSION AND DECISION

Judicial review of agency action is governed by the Administrative Orders and Procedures Act (FAOPA"). IC 4-21.5-5; Clendening v. Indiana Family & Soc. Servs. Admin., 715 N.E.2d 903, 904, (Ind.Ct.App.1999). Under the AOPA, a court may grant relief from an administrative determination if the determination is: arbitrary, capricious, an abuse of discretion, or otherwise not in 'accordance with the law; contrary to constitutional right, power, privilege, or immunity; in excess of statutory jurisdiction, authority, or limitations, or short of statutory right; without observance of procedure required by law; or unsupported by substantial evidence. IC 4-21.5-5-14; Rynerson v. City of Franklin, 669 N.E.2d 964, 971 (Ind.1996); Weiss v. Indiana Family & Soc. Servs. Admin., Div. of Disability, Aging & Rehabilitative Servs., 741 N.E.2d 398, 402 (Ind.Ct.App.2000), trans. denied.

When reviewing an administrative agency's decision, appellate courts stand in the same position as the trial court. Amoco Oil Co., Whiting Refinery v. Commissioner of Labor, 726 N.E.2d 869, 872 (Ind.Ct.App.2000). We review the ree-ord in the light most favorable to the administrative proceedings and are prohibited from reweighing the evidence or judging the credibility of witnesses. Noland v. Indiana Family & Soc. Servs. Admin., Div. of Disability, Aging & Rehabilitative Servs., 743 N.E.2d 1200, 1208 (Ind.Ct.App.2001), clarified and aff'd. on reh'g, 750 N.E.2d 401 (Ind.Ct.App.2001); Shoot v. State, Family & Soc. Servs. Admin., 691 N.E.2d 1290, 1292 (Ind.Ct.App.1998). Additionally, we are bound by the agency's *544 findings of fact if supported by substantial evidence. Hanulton County Dep't of Pub. Welfare v. Smith, 567 N.E.2d 165, 167-68 (Ind.Ct.App.1991). However, we are not bound by an agency's interpretation of the law. Ashlin Transp. Servs., Inc. v. Indiana Unemployment Ins. Bd., 637 N.E.2d 162, 165 (Ind.Ct.App.1994).

The trial court found that the FSSA was arbitrary, capricious, and abused its discretion in denying Howard a license. A rule or decision "will be found to be arbitrary and capricious 'only where it is willful and unreasonable, without consideration and in disregard of the facts or cireumstances in the case, or without some basis which would lead a reasonable and honest person to the same conclusion." Indiana High School Athletic Ass'n, Inc. v. Martin, 731 N.E.2d 1, 6 (Ind.Ct.App.2000), trans. denied (quoting Dep't of Natural Resources v. Indiana Coal Council, Inc., 542 N.E.2d 1000, 1007 (Ind.1989), cert. denied, 498 U.S. 1078, 110 S.Ct. 1130, 107 L.Ed.2d 1036 (1990)). "In order to avoid judicial reversal of its action as arbitrary and capricious, an agency must engage in 'reasoned decisionmaking," defined to include an explanation of how the agency proceeded from its findings to the action it has taken." Kenneta Cuur Davis & RicHarp J. Prercos, Jr., ApministRATIVE Law Treariss § 11.4 Brd ed.1994). "An agency's duty of explanation reflects the fact that the agency is exercising delegated adjudicative powers in a quasi-judicial capacity." Hubbard v. State, 683 N.E.2d 618, 621 n. 2 (Ind.Ct.App.1997).

Our supreme court has determined that the legislature may constitutionally delegate rule-making powers to an administrative agency. Barco Beverage Corp. v. Indiana Alcoholic Beverage Comm'n, 595 N.E.2d 250, 253-54 (Ind.1992). The only limitation on the legislature's delegation of authority to administrative bodies is that sufficient standards must be established to guide the agency in the exercise of this power. Id. at 254; Indiana Alcoholic Beverage Comm'n v.

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Bluebook (online)
758 N.E.2d 540, 2001 Ind. App. LEXIS 1955, 2001 WL 1419360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stansberry-v-howard-indctapp-2001.