Western Drug v. Gosman

374 P.2d 507, 141 Mont. 8, 1962 Mont. LEXIS 2
CourtMontana Supreme Court
DecidedSeptember 14, 1962
DocketNo. 10359
StatusPublished
Cited by2 cases

This text of 374 P.2d 507 (Western Drug v. Gosman) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Drug v. Gosman, 374 P.2d 507, 141 Mont. 8, 1962 Mont. LEXIS 2 (Mo. 1962).

Opinion

MR. CHIEF JUSTICE JAMES T. HARRISON

delivered the Opinion of the Court.

Appeal from a judgment entered in the district court of Cascade County, Montana, affirming an order of suspension of the pharmacy license of the plaintiff made by the Montana State Board of Pharmacy.

It appears that the Montana State Board of Pharmacy, hereinafter referred to as the Board, having received a complaint that the plaintiff had sold drugs without labeling, instructed its secretary to get proper evidence and then start prosecution. Thereafter the secretary of the Board asked an employee of a member of the Board to go to the plaintiff’s store and purchase some Gelusil tablets. The employee, in company with the secretary, went to the store of the plaintiff on October 8, 1960, and purchased 100 Gelusil tablets. The tablets were sold to him by an unidentified person in the store of plaintiff and delivered to him in a paper envelope. This envelope bore advertising of the plaintiff but had no label as to the contents.

Thereafter on December 12, 1960, the secretary filed a complaint with the Board charging the plaintiff with having been engaged in a course of conduct in violation of Chapter 15, Title [10]*1066, R.C.M.1947, and particularly section 66-1523, R.C.M.1947, in that it sold the tablets and ‘ ‘ at said time willfully, negligently or ignorantly omitted to label the package.”

A notice of hearing was issued the same day by the secretary, directed to the plaintiff, giving notice that a hearing would be held by the Board to determine whether or not the certified pharmacy license of the plaintiff should be revoked because of the complaint and allegations set forth therein. Plaintiff was notified that it might attend such hearing and show cause why its license should not be revoked or suspended for the violation of the law and particularly section 66-1523, as charged and set forth in the complaint.

At the hearing, proof was offered of the sale, and that Gelusil was a drug. Plaintiff’s chief pharmacist and its president testified they did not condone the sale of Gelusil without a label. The chief pharmacist testified that he did not make the sale and that such a sale would be contrary to his orders, instructions and policy. He testified that to protect the public, himself and everyone else drugs should be labeled.

The hearing was concluded and thereafter the Board made an order suspending plaintiff’s license for a period of ten days.

The plaintiff then brought this action upon a petition for a review of the Board’s order contending: (1) that the evidence did not sustain the charges in the complaint; (2) that Gelusil was a common antiacid, not requiring a prescription, and that there was no competent evidence that it was a drug within the meaning of the statutes; (3) that one of the members of the Board was a competitor of plaintiff whose employee made the purchase complained of, and that the member did not disqualify himself from participating in the hearing; (4) that the Board erroneously interpreted the meaning, application and purpose of section 66-1523, R.C.M.1947; and, (5) that the order of the Board was in excess of the power and authority granted by section 66-1508, R.G.M.1947, and further that said order was (a) contrary to the evidence and not supported by substantial [11]*11evidence and contrary to law, (b) based upon bias and prejudice and a denial of a fair and impartial hearing and so excessive and unreasonable as to perpetrate an injustice, (c) arbitrary, capricious and unlawful, and (d) a denial of due process of law and a taking of private property without due process of law.

The Board answered and the matter came on for hearing before the district court. Plaintiff offered additional testimony, but objection was made by the Board on the ground that the court was without jurisdiction to hear additional evidence being limited solely to a review of the record made before the Board. The court permitted the testimony to be received, subject to the objection.

After the hearing had concluded the court sustained the objection.

The court found:

“That on or about October 8, 1960, one Charles Tinney bought from the said Western Drug of Great Falls, from some unidentified person, one hundred (100) Gelusil tablets in an unlabeled package.
“That said Gelusil tablets are a drug as defined by the statutes of the State of Montana but are not such a drug as required the prescription of a physician for purchase.
“That on the 31st day of January, 1961, after due hearing thereon the Montana State Board of Pharmacy suspended the license of Western Drug of Great Falls, a corporation, being Certified Pharmacy license number 130, for a period of ten (10) days, effective and beginning February 25, 1961, * * *
“That the record shows an undisclosed and unnamed employee of Western Drug of Great Falls, a corporation, sold said Gelusil tablets to the said Charles Tinney.
“That the temporary suspension of the Certified Pharmacy license number 130 issued to the plaintiff, Western [12]*12Drug of Great Falls, a corporation, is a severe and harsh penalty. ’ ’
And then concluded: “The Western Drug of Great Falls, a corporation, was responsible for the negligent sale by one of its unnamed employees of the said Gelusil tablets, and the exercise by the Board of its power to suspend the license of the Western Drug of Great Falls, a corporation, is a valid exercise of the Board’s police power, and while the penalty, in the opinion of the Court, is a severe and a harsh one, the Court deems itself without jurisdiction or authority to set aside or reduce said penalty.”

The court then sustained the suspension. Motion was made for additional findings, and upon the hearing it was stipulated that the court would make additional conclusions of law on the subjects requested by the plaintiff, and the court, by order, amended its conclusions of law by adding:

“That the said sale of Gelusil tablets constituted a violation of section 66-1523, R.C.M.1947.
“That a single sale of Gelusil tablets in violation of section 66-1523, R.C.M.1947, constituted an offense for which the Board could suspend or revoke plaintiff’s license under the provisions of section 66-1508(c), R.C.M.1947.”

This appeal followed, and plaintiff specifies error (1) in sustaining defendant’s objection to the introduction of evidence before the court and limiting the hearing to the review of the Board hearing record; (2) in determining that a single sale of Gelusil tablets in violation of section 66-1523, R.C.M.1947, constituted an offense by which the Board could suspend the plaintiff’s license under section 66-1508(e) R.C.M.1947; (3) in determining that it was without jurisdiction to set aside or reduce the penalty imposed; (4) sustaining the ten (10) day suspension; and (5) failing to annul the action of the Board in suspending the license.

Turning to the first specification of error, absent a specific authorization in the statute providing for judicial [13]*13review that additional testimony may be received by the court, the district court was correct in its ruling. Ordinarily where additional testimony is received upon an appeal from an administrative action it is by virtue of a statutory provision.

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Bluebook (online)
374 P.2d 507, 141 Mont. 8, 1962 Mont. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-drug-v-gosman-mont-1962.