Wyoming State Board of Examiners of Optometry v. Pearle Vision Center, Inc.

767 P.2d 969, 82 A.L.R. 4th 781, 1989 Wyo. LEXIS 3, 1989 WL 207
CourtWyoming Supreme Court
DecidedJanuary 4, 1989
Docket86-323
StatusPublished
Cited by9 cases

This text of 767 P.2d 969 (Wyoming State Board of Examiners of Optometry v. Pearle Vision Center, Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyoming State Board of Examiners of Optometry v. Pearle Vision Center, Inc., 767 P.2d 969, 82 A.L.R. 4th 781, 1989 Wyo. LEXIS 3, 1989 WL 207 (Wyo. 1989).

Opinions

THOMAS, Justice.

At issue in this case is whether a franchise agreement for the marketing of optical products and services, entered into between a certificated optometrist and a corporation, results in fee splitting or the employment of a “steerer,” both in violation of § 33 — 23—110(b)(i), W.S.1977. Additional questions are raised as to whether the franchiser was engaged in the practice of optometry without a valid certificate of registration in violation of § 33-23-103, W.S. 1977, or, as a general business corporation, was engaged indirectly in the practice of optometry in violation of § 33-23-lll(b)(iv), W.S.1977. Section 33-23-110(b)(i), W.S.1977, provides:

“(b) ‘Unprofessional and dishonest conduct’ as used in this act is hereby declared to mean:
“(i) The loaning of his license by any licensed optometrist to any person; the employment of ‘cappers’ or ‘steerers’ to obtain business, ‘splitting’ or dividing a fee with any person or persons, the advertising by any means whatsoever of optometric practice or treatment or advice in which untruthful, improbable,
misleading or impossible statements are made; * *

Section 33-23-103, W.S.1977, provides:

“(a) It is unlawful for any person in the state of Wyoming to practice or attempt to practice optometry or to advertise, or hold himself out as qualified to fit or adjust any lenses or lens in any manner or form as an aid to human eyesight, without first obtaining a certificate to practice optometry.”

Section 33-23-lll(b), W.S.1977, provides:

“(b) It is unlawful:
* * * # * *
“(iv) For any person or persons not holding a certificate or any corporation, directly or indirectly, to practice optometry by employment of or contract with a person holding a certificate, or otherwise, provided that one holding a certificate may accept employment from a person, partnership, association or corporation to practice optometry with respect to the employees of such person, partnership, association or corporation.”

The district court denied the injunctive relief sought by the Wyoming State Board of Examiners of Optometry (Board), holding that the arrangement between Pearle Vision Center, Inc. (Pearle), as the franchiser, and Robert L. Holly (Holly), a Board certificated optometrist as franchisee, did not transgress any of these statutory provisions. We are in accord with the judgment of the district court, and we affirm that judgment.

As appellant, the Board states the following issues in urging a reversal of the district court:

“1. Consideration of all the pleadings, affidavits, depositions, stipulated exhibits, and evidence presented to the District Court discloses that the District Court erroneously granted summary judgment in favor of the deféndants.
“2. Consideration of all pleadings, affidavits, depositions, stipulated exhibits, and evidence presented to the District Court discloses that there was no genuine issue of material fact, and that Plaintiff was entitled to judgment as a matter of law.”

[971]*971Pearle, as appellee, restates the issues on appeal in this way:

“1. Whether Defendants Pearle and Holly, by virtue of their having executed a franchise agreement and attendant agreements, have established a relationship which places Defendant Holly under the direction and control of Defendant Pearle?
“2. Whether the relationship between Defendants Pearle and Holly constitutes indirect practice of optometry by a corporation in violation of W.S. § 33-23-lll(b)(iv)?”

Holly also defends the decision of the district court in his favor, and his statement of the issues is:

“1. Did the District Court err in granting summary judgment in favor of Defendant, Robert L. Holly?
“2. Does the evidence presented to the District Court, in the way of pleadings, affidavits, depositions, exhibits and oral argument, support the district court’s finding that there was no genuine issue of material fact and that Defendant, Robert L. Holly, was entitled to judgment as a matter of law?”

On September 16, 1985, the Board brought an action seeking injunctive relief and monetary damages against Holly and Pearle. This action followed the formal opinion of the Wyoming attorney general issued on August 20, 1985 which, in pertinent part, said:

“Section 33-23-lll(b)(iv), W.S.1977, precludes a corporation from the practice of optometry in Wyoming. This restriction includes any attempt by a corporation to practice optometry indirectly through the services of an individual who holds a certificate to practice optometry. A franchise agreement between a corporation and an individual licensed to practice optometry gives the franchiser a certain amount of control over the licensed practitioner. Therefore, this form of corporate control is also prohibited by statute.”

The Board alleged in its complaint that Holly and Pearle were engaged in fee splitting in violation of § 33-23-110(b)(i), W.S. 1977; Holly was employing Pearle as a “steerer” to obtain business in violation of § 33-23-110(b)(i), W.S.1977; Pearle and/or Holly were engaged in “canvassing” in violation of § 33-23-lll(b)(i), W.S.1977; Pearle was engaged in the practice of optometry without a valid certificate of registration in violation of § 33-23-103, W.S. 1977; and Pearle, a general business corporation, was engaged indirectly in the practice of optometry in violation of § 33-23-lll(b)(iv), W.S.1977.

Holly and Pearle filed separate answers to the Board’s complaint. In each answer, the respective defendant alleged that the relationship between Holly and Pearle was not prohibited by statute or, to the extent it might be prohibited by statute, the prohibition is unconstitutional. Discovery was pursued, and the several parties then moved for summary judgment on all issues. A hearing was set on the motions for summary judgment and, prior to that hearing, the Board withdrew its claim for monetary damages and dropped its allegations that Pearle and/or Holly were engaged in canvassing. The district court received briefs and heard oral argument and then granted summary judgment to Pearle and Holly on all remaining issues and denied the summary judgment sought by the Board.

Pearle is a Texas corporation, and it owns and operates retail optical stores in several states. Holly was licensed as an optometrist in Wyoming in 1983. Early in 1985, Holly wrote to Pearle and suggested that he would be interested in acquiring a Pearle franchise. Several letters from Pearle to Holly explaining various arrangements by which Holly could acquire a Pearle franchise are included in the record. Ultimately, Holly and Pearle agreed to an arrangement that required Holly to enter into a sublease of office space and a separate franchise agreement with Pearle. The action filed by the Board challenged the relationship between Pearle and Holly pursuant to the franchise agreement. The complaint did not allege that the agreement is a sham, or that the true relationship between Pearle and Holly was anything [972]*972other than what was set forth in the agreement.

The sublease was for office space at the Frontier Mall in Cheyenne, Wyoming.

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Cite This Page — Counsel Stack

Bluebook (online)
767 P.2d 969, 82 A.L.R. 4th 781, 1989 Wyo. LEXIS 3, 1989 WL 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyoming-state-board-of-examiners-of-optometry-v-pearle-vision-center-inc-wyo-1989.