Haymes, Matter of
| Decision Date | 18 August 1989 |
| Docket Number | No. C6-88-344,C6-88-344 |
| Citation | 444 N.W.2d 257 |
| Parties | In the Matter of the Occupational License of Jack HAYMES. |
| Court | Minnesota Supreme Court |
Syllabus by the Court
A state agency aggrieved by an administrative law judge's order requiring it to pay a claimant's attorney fees under the Minnesota Equal Access to Justice Act may seek judicial review by certiorari.
Robert J. Hennessey, Andrew J. Mitchell, Larkin, Hoffman, Daly & Lindgren, Ltd., Bloomington, for appellant.
Mary B. Magnuson, Sp. Asst. Atty. Gen., St. Paul, for respondent.
Heard, considered and decided by the court en banc.
This case presents the issue whether a state agency ordered to pay a claimant's attorney fees and costs under the Equal Access to Justice Act may seek judicial review of that order. We hold that the state agency's right of judicial review is by certiorari, but, because the state agency did not follow that procedure here, we reverse.
Petitioner Kathy W. Hutchinson, a horse trainer, and her employee, Jack D. Haymes, were subject to disciplinary charges for administering prohibited drugs to their horses. This resulted in a contested case hearing before the Minnesota Racing Commission, with a hearing before an administrative law judge. The judge found in favor of Hutchinson and Haymes and recommended no discipline. The Racing Commission adopted the judge's findings and recommendations as to employee Haymes but, as to his employer Hutchinson, the Racing Commission rejected the judge's findings and recommendations and ordered a 30-day suspension.
Thereafter Hutchinson and Haymes applied to the administrative law judge for Haymes' legal expenses under Minn.Stat. Secs. 3.761-3.765 (1986), the Equal Access to Justice Act. The judge ruled that Haymes did not qualify as a fee claimant but that Hutchinson, as Haymes' employer who had agreed to pay her employee's legal expenses, could recover the cost of Haymes' successful defense. Hutchinson was awarded $6,083.45. Under the Act this fee determination is a final order binding on the state agency. Minn.Stat. Sec. 3.762.
The Racing Commission was dissatisfied with the administrative law judge's decision, not because of the amount of the fees, but because it believed the judge erred in construing the Act to allow Hutchinson to recover Haymes' fees. Consequently, the Racing Commission decided to appeal. The sole question before us is whether the Racing Commission could appeal, and, if so, in what manner.
The Racing Commission filed a petition for discretionary review pursuant to Minn.R.Civ.App.P. 105 and Minn.Stat. Sec. 3.764, subd. 2 (1986). The court of appeals granted the petition, reasoning that the Equal Access to Justice Act impliedly at least provided for discretionary review. Having granted the petition, the court of appeals then reversed the administrative law judge on the statutory construction issue, holding that Hutchinson was not an eligible fee claimant. Matter of Haymes, 427 N.W.2d 248, 252-253 (Minn.App.1988).
Hutchinson then petitioned this court for further review solely on the issue of whether the court of appeals had jurisdiction to entertain the Racing Commission's petition for discretionary review. We granted the petition. We conclude the Racing Commission is entitled to seek judicial review of the fee determination, but by certiorari not discretionary review.
The Minnesota Equal Access to Justice Act was enacted by the legislature in 1986. See Act of March 19, 1986, ch. 377, Sec. 1, 1986 Minn.Laws 200. The Act is modeled after similar federal legislation. See McMains v. Commissioner of Public Safety, 409 N.W.2d 911, 914 (Minn.App.1987). The Act permits a class of claimants who have prevailed in a contested case hearing before a state agency to make an application to the administrative law judge in that hearing for an award of attorney fees. Section 3.764, subd. 2 of the Act deals with judicial review of a fee award. It provides:
APPEAL. A party dissatisfied with the fee determination made under subdivision 1 may petition for leave to appeal to the court having jurisdiction to review the merits of the underlying decision of the contested case. If the court denies the petition for leave to appeal, no appeal may be taken from the denial. If the court grants the petition, it may modify the determination only if it finds that the failure to make an award, or the calculation of the amount of the award, was an abuse of discretion.
It is clear, however, this section does not give the Racing Commission a right to petition for leave to appeal. A state agency is conspicuously absent from the Act's definition of a party. See Minn.Stat. Sec. 3.761, subd. 6. It is quite evident the phrase "A party dissatisfied with the fee determination," as appearing in the appeal section, refers to an aggrieved fee claimant, not to the state agency involved. Neither do any of the provisions of the Administrative Procedure Act, Minn.Stat. Secs. 14.01-14.69 (1986), appear to give the state agency a right of judicial review in this situation. In other words, while an aggrieved fee claimant has a statutory right to seek judicial review, the aggrieved state agency does not.
The Racing Commission points out, however, that under the separation of powers clause of our state constitution, judicial review must be provided for administrative agency decisions involving the exercise of quasi-judicial powers. See, e.g., Breimhorst v. Beckman, 227 Minn. 409, 433, 35 N.W.2d 719, 734 (1949). We have been quite emphatic on this point. Wulff v. Tax Court of Appeals, 288 N.W.2d 221, 222-223 (Minn.1979). While judicial review of a judicial branch decision is not constitutionally required, see Appeal of O'Rourke, 300 Minn. 158, 220 N.W.2d 811, 815 (1974), judicial review of an executive branch's quasi-judicial decision is constitutionally mandated.
Although we agree with the Racing Commission that it is entitled here to judicial review, it does not follow it can invoke the court's jurisdiction by a petition for discretionary review when...
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