State ex rel. American Institute of Marketing Systems, Inc. v. Missouri Real Estate Commission

461 S.W.2d 902, 1970 Mo. App. LEXIS 516
CourtMissouri Court of Appeals
DecidedOctober 27, 1970
DocketNo. 25332
StatusPublished
Cited by10 cases

This text of 461 S.W.2d 902 (State ex rel. American Institute of Marketing Systems, Inc. v. Missouri Real Estate Commission) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. American Institute of Marketing Systems, Inc. v. Missouri Real Estate Commission, 461 S.W.2d 902, 1970 Mo. App. LEXIS 516 (Mo. Ct. App. 1970).

Opinion

ORIGINAL PROCEEDING IN PROHIBITION

HOWARD, Judge.

This is an original proceeding in prohibition wherein American Institute of Marketing Systems, Inc. (hereinafter called AIMS), and Newton D. Baker and Ron W. Cooney, two of its officers, seek to prohibit the respondent Real Estate Commission from continuing with hearings concerning relators’ right to renewal of their respective real estate licenses. The prime contention of relators is that respondent no longer has legal authority to hold this (or any other) hearing since the enactment of the “Administrative Hearing Commission Act” in 1965. This Act is presently found in Sections 161.252 to 161.-342, inclusive (all statutory references are to RSMo 1969, V.A.M.S., unless otherwise indicated). Since we have concluded that this issue is determinative of the action, we need not notice other issues raised by the parties.

AIMS is a Missouri corporation which has been licensed as a real estate broker since 1962. All real estate licenses expire on June 30 of each year. They must be renewed annually. In 1968 and prior to June 30, AIMS duly filed its application for renewal and tendered the required fee. The Commission did not issue the renewal license but instead issued a notice of hearing “for the purpose of determining whether or not your real estate license should be renewed.” This hearing was to be held before the Real Estate Commission and it was commenced on the 4th of December, 1968, and recessed to a later date. Prior to the resumption of this hearing, our Preliminary Rule in Prohibition issued.

Long prior to the enactment of the Administrative Hearing Commission Act, the Missouri Real Estate Commission had been created to license and regulate real estate brokers and salesmen. This statute is now Chapter 339. Section 339.040 provides that: “A license shall be granted only to persons who bear and to corporations or [904]*904associations whose officers bear, a good reputation for honesty, integrity, fair dealing, and who are competent to transact the business of a real estate broker or a real estate salesman * *

Section 339.060 provides for annual licenses to expire on the 30th day of June of each year and the fees for renewal thereof. As to the requirements of renewal, it is specified: “In the absence of any reason or condition which might warrant the refusal of the granting of a license, the commission shall issue a new license for each ensuing year upon receipt of the written application of the applicant and the renewal fee herein required.” Provision is specifically made for hearings to be held by the commission in certain instances. Thus, Section 339.080, paragraph 1, provides: “The commission may deny an application for a license, or suspend or revoke a license issued, only after a hearing * * This section provides for notice and the conduct of the hearing; power to issue subpoenas, and then provides in paragraph 3: “If the commission shall determine that any applicant is not qualified to receive a license, a license shall not be granted to said applicant, and if the commission shall determine that any licensee is guilty of violation of any of the provisions of this chapter, his or its license shall be suspended or revoked.” Provision is made for judicial review. Section 339.100 authorizes the commission on its own motion, or upon complaint filed with it, to “investigate the business transactions of any real estate broker or real estate salesman and [it] shall have the power to suspend or revoke any license * * *.” for the reasons enumerated in this section. Section 339.-110 provides for mandatory revocation or refusal to issue a license where there has been a conviction of certain named crimes.

It is the position of the respondent commission that the present hearing is to determine whether or not there is any reason or condition which would warrant the refusal of the granting of a license. If such reason or condition is found, it will refuse to renew the license of relators. It contends that this procedure is authorized and, in fact, required by the above quoted provision of Section 339.060. It equates the renewal of a license with the original issuance of a license and argues that Section 339.080 requires it to hold a hearing before it can deny an application. On the other hand, relators contend that the enactment of the Administrative Hearing Commission Act takes away from the Missouri Real Estate Commission all power to hold hearings and that any hearing that was heretofore authorized to be held by the real estate commission must now be held by the administrative hearing commissioner. Re-lators further contend that the action of the commission is, in substance and in fact, a proceeding to suspend or revoke the licenses of relators and is not a proceeding looking toward a denial of an application. We must, therefore, examine the provisions of the Administrative Hearing Commission Act.

Section 161.272 provides in pertinent part: “The administrative hearing commission shall conduct hearings and make findings of fact and conclusions of law in those cases wherein, under the law, a license issued by any of the following agencies may be revoked or suspended or wherein the licensee may be placed on probation or wherein an agency refuses to permit an applicant to be examined upon his qualifications or refuses to issue or renew a license of an applicant who has passed an examination for licensure or who possesses the qualifications for licen-sure without examination * * *.” The Missouri Real Estate Commission is one of the 15 licensing boards which are specifically enumerated as being within the purview of this provision.

Sections 161.282 and 161.292 provide that on complaint of any of the licensing agencies or of the attorney general, the hearing commission shall hold a hearing on the charges against the licensee and make findings of fact and conclusions of law. If the findings of the hearing commission [905]*905support the charge, the commission may recommend appropriate disciplinary action. However, the matter of discipline is referred back to the licensing agency which may hold an additional hearing and must determine the disciplinary action to be taken. If the findings of the hearing commission do not support the charge, the complaint is dismissed.

Section 161.302 provides for complaint to be made to the hearing commission by an applicant or a licensee when the licensing agency refuses to permit him to take an examination or refuses to issue or renew a license to one who has passed an examination or who possesses the qualifications for a license without examination. If, after hearing, the hearing commission finds that the individual is entitled to take the examination or to receive a license or to have his license renewed, it shall enter the appropriate order.

The respondent real estate commission maintains that this is not a proceeding looking toward suspension or revocation of an existing license but that the purpose of this hearing is to determine whether or not the licenses of relators should be renewed; that Section 161.302 does not authorize the hearing commission to act until it (the real estate commission) has refused to renew the license; that only then can the relators file a complaint with the hearing commission and only then is the hearing commission authorized to act.

We note that Section 339.100, supra, permits an investigation of a licensee’s actions on the board’s own motion and requires such an investigation on written complaint by any person. The language of the statute is: “The commission may on its own motion, and shall

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Bluebook (online)
461 S.W.2d 902, 1970 Mo. App. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-american-institute-of-marketing-systems-inc-v-missouri-moctapp-1970.