State ex rel. Small Early World Learning Ctr. v. Ohio Dept. of Job & Family Servs.

2021 Ohio 954
CourtOhio Court of Appeals
DecidedMarch 25, 2021
Docket18AP-532
StatusPublished

This text of 2021 Ohio 954 (State ex rel. Small Early World Learning 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
State ex rel. Small Early World Learning Ctr. v. Ohio Dept. of Job & Family Servs., 2021 Ohio 954 (Ohio Ct. App. 2021).

Opinion

[Cite as State ex rel. Small Early World Learning Ctr. v. Ohio Dept. of Job & Family Servs., 2021-Ohio-954.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

State ex rel., : Small World Learning Center, : Relator, : v. No. 18AP-532 : Ohio Department of (REGULAR CALENDAR) Job and Family Services, :

Respondent. :

D E C I S I O N

Rendered on March 25, 2021

On Brief: Johnna M. Shia, for relator. Argued: Johnna M. Shia.

On Brief: Dave Yost, Attorney General, and Rebecca L. Thomas, for respondent. Argued: Rebecca L. Thomas.

IN MANDAMUS ON OBJECTIONS TO MAGISTRATE'S DECISION

KLATT, J.

{¶ 1} Relator, Small World Early Childhood Development Center, Inc., commenced this original action in mandamus seeking an order compelling respondent, Ohio Department of Job and Family Services ("ODJFS"), to (1) promulgate rules that would specifically provide for a right to appeal an ODJFS decision to terminate a daycare provider agreement ("agreement") to the common pleas court; and (2) vacate its decision to terminate the agreement. In response, ODJFS filed a motion to dismiss relator's complaint. No. 18AP-532 2

{¶ 2} Pursuant to Civ.R. 53 and Loc.R. 13(M) of the Tenth District Court of Appeals, we referred this matter to a magistrate who issued a decision, including findings of fact and conclusions of law. The magistrate determined that this court could not order ODJFS to promulgate a rule to allow for an appeal to a common pleas court. Therefore, the magistrate recommended that we grant ODJFS' motion to dismiss. {¶ 3} Relator filed objections to the magistrate's decision. This court overruled in part relator's objections to the magistrate's decision finding that this court could not order ODJFS to promulgate a rule to allow for an appeal to a common pleas court. However, this court sustained relator's objection to the dismissal because the magistrate failed to address relator's claim that ODJFS abused its discretion in terminating the agreement. Therefore, we remanded this case to the magistrate for further proceedings to address this claim. {¶ 4} On remand, a different magistrate issued a decision, including findings of fact and conclusions of law, which addressed the relator's claim that ODJFS abused its discretion when it terminated the agreement. That decision is appended hereto. The magistrate found that the terms of the agreement and various provisions of Ohio law granted ODJFS the right to terminate the agreement without conducting the program integrity review set forth in former Ohio Adm.Code 5101:2-16-72. The magistrate also found that even if an integrity review had been required, the investigation ODJFS conducted constituted an integrity review. Lastly, the magistrate determined that ODJFS did not abuse its discretion in conducting its investigation or in terminating the agreement. Therefore, the magistrate has recommended that we deny relator's request for a writ of mandamus. {¶ 5} Relator has filed objections to the magistrate's decision. It appears relator presents three objections to the magistrate's decision: (1) the magistrate erred when he found that the agreement could be terminated by ODJFS without an integrity review conducted pursuant to former Ohio Adm.Code 5101:2-16-72; (2) contrary to the magistrate's decision, the investigation conducted by ODJFS did not constitute an integrity review; and (3) the magistrate erred in finding that ODJFS did not abuse its discretion when it terminated the agreement and when it refused to reconsider that termination after relator presented some additional records. For the following reasons, we find relator's objections unpersuasive. No. 18AP-532 3

{¶ 6} With respect to relator's first objection, relator fails to identify any provision of the agreement that required ODJFS to conduct an integrity review pursuant to former Ohio Adm.Code 5101:2-16-72 before it could exercise its termination right provided for in the agreement. Nor does former Ohio Adm.Code 5101:2-16-72 negate or limit ODJFS' termination rights set forth in the agreement. We agree with the magistrate that the terms of the agreement and applicable provisions of Ohio law gave ODJFS the right to terminate the agreement without conducting the integrity review provided for in former Ohio Adm.Code 5101:2-16-72. Specifically, the magistrate noted that former Ohio Adm.Code 5101:2-16-44 stated that "[t]he provider agreement * * * may be terminated in accordance with the terms contained in the agreement." Paragraph 31 of the agreement states that it may be terminated by ODJFS upon 30 days written notice and shall terminate automatically without written notice if there is a failure to honor the terms of the agreement and related state, federal, or local law and regulations. Former R.C. 5104.32(D)(2) expressly prohibited an eligible daycare provider from possessing or using an electronic childcare card issued to a caretaker parent; knowingly seeking payment for publicly funded childcare that was not provided; and knowingly accepting reimbursement for publicly funded childcare that was not provided. ODJFS concluded from its investigation that relator committed these violations. Although relator appears to dispute that it knowingly sought or received payments for childcare it did not provide, relator does not dispute that its staff possessed and used electronic childcare cards issued to caretaker parents. Based upon relator's admitted violation of former R.C. 5104.32(D)(2) alone, ODJFS' termination of the agreement was authorized by its terms and by Ohio law. In addition, the agreement expressly granted ODJFS the absolute right to terminate the agreement on 30 days written notice. We agree with the magistrate that relator has failed to show that an integrity review provided for in former Ohio Adm.Code 5101:2-16-72 was required before ODJFS could terminate the agreement. Therefore, we overrule relator's first objection. {¶ 7} In its second objection, relator contends that the investigation ODJFS conducted did not constitute an integrity review as contemplated by former Ohio Adm.Code 5101:2-16-72. Because we have already determined that ODJFS was not required to conduct an integrity review before terminating the agreement, this objection is moot. Nevertheless, we agree with the magistrate that the investigation conducted by No. 18AP-532 4

ODJFS prior to terminating the agreement would have constituted an integrity review under former Ohio Adm.Code 5101:2-16-72. A "program integrity review" includes "reviews, audits, investigation, and other activities carried out to ensure public programs are limited to only eligible participants, and payments to providers for actual services provided and conform to program rules." See former Ohio Adm.Code 5101:2-16-72(A). As noted by the magistrate, ODJFS conducted an extensive investigation of relator that involved on-site observations, the review of relator's attendance records, and the review of records reflecting payments ODJFS made to relator over an 11-month period. The records reviewed by ODJFS were largely provided by relator. Relator has articulated no persuasive reason why this investigation would not constitute an integrity review. We also agree with the magistrate that former Ohio Adm.Code 5101:2-16-72 did not require that all the governmental entities identified in subsection (C) of that code provision be involved in the investigation. Rather, it simply identified those entities that may conduct such a review, which included ODJFS. For these reasons, we overrule relator's second objection. {¶ 8} In its third objection, relator contends that the magistrate erred when he failed to find an abuse of discretion by ODJFS in terminating the agreement. We disagree.

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2021 Ohio 954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-small-early-world-learning-ctr-v-ohio-dept-of-job-family-ohioctapp-2021.