Vanhorn v. Nebraska State Racing Com'n

• Citation: 273 Neb. 737,732 N.W.2d 651
• Decision Date: 08 June 2007
• Docket Number: No. S-06-105.,No. S-06-103.,S-06-103.,S-06-105.
• Parties: Stacy Lane VANHORN, Appellant, v. NEBRASKA STATE RACING COMMISSION and Dennis Oelschlager, Executive Secretary of Nebraska State Racing Commission, Appellees. Douglas L. Brunk, Appellant, v. Nebraska State Racing Commission and Dennis Oelschlager, Executive Secretary of Nebraska State Racing Commission, Appellees.
• Court: Nebraska Supreme Court

732 N.W.2d 651

273 Neb. 737

Stacy Lane VANHORN, Appellant, v. NEBRASKA STATE RACING COMMISSION and Dennis Oelschlager, Executive Secretary of Nebraska State Racing Commission, Appellees.

Douglas L. Brunk, Appellant, v. Nebraska State Racing Commission and Dennis Oelschlager, Executive Secretary of Nebraska State Racing Commission, Appellees.

No. S-06-103.

No. S-06-105.

Supreme Court of Nebraska.

June 8, 2007.

O. William VonSeggern, Grand Island, for appellants.

David T. Schroeder, Grand Island, on brief, for appellant Douglas L. Brunk.

Jon Bruning, Attorney General, and L. Jay Bartel, Lincoln, for appellees.

HEAVICAN, C.J., WRIGHT, CONNOLLY, GERRARD, STEPHAN, McCORMACK, and MILLER-LERMAN, JJ.

WRIGHT, J.

NATURE OF CASE

Stacy Lane VanHorn and Douglas L. Brunk, equine veterinarians, were found by the Nebraska State Racing Commission (Commission) to have violated rules regarding the administration of medications to racehorses. VanHorn and Brunk appealed the Commission's assessment of disciplinary sanctions, and the Lancaster County District Court modified the penalties. The Commission appealed from that determination. This court affirmed the district court's order as to the penalties imposed on VanHorn. We affirmed the district court's order as to Brunk, with a modification of the penalties imposed. See Brunk v. Nebraska State Racing Comm., 270 Neb. 186, 700 N.W.2d 594 (2005).

After the mandates from this court were issued, VanHorn and Brunk each filed an "Application for Damages, Costs and Fees" in the district court. The district court concluded it lacked subject matter jurisdiction and sustained the motions to dismiss filed by the Commission and Dennis Oelschlager, the Commission's executive secretary (hereinafter collectively referred to as "Commission"). VanHorn and Brunk appeal.

SCOPE OF REVIEW

When a lower court lacks the authority to exercise its subject matter jurisdiction to adjudicate the merits of the claim, issue, or question, an appellate court also lacks the power to determine the merits of the claim, issue, or question presented to the lower court. Kaplan v. McClurg, 271 Neb. 101, 710 N.W.2d 96 (2006).

A jurisdictional question which does not involve a factual dispute is determined by an appellate court as a matter of law, which requires the appellate court to reach a conclusion independent of the lower court's decision. Hallie Mgmt. Co. v. Perry, 272 Neb. 81, 718 N.W.2d 531 (2006).

FACTS

VanHorn and Brunk served as veterinarians during the 2001 horseracing season at Fonner Park in Grand Island, Nebraska. The Commission determined that VanHorn and Brunk violated Commission rules regarding the administration of medications to racehorses and the handling, packaging, and reporting of medications. It ordered each veterinarian to pay a fine of $2,000 and ruled them ineligible for licensing until January 1, 2006.

VanHorn and Brunk sought review of the Commission's decisions. The district court affirmed the Commission's findings, except the court determined there was insufficient evidence (1) to support the determination that Brunk failed to cooperate with the Commission during its investigation and (2) to find that VanHorn and Brunk were responsible for the administration of Clonidine, a human blood pressure medication, to racehorses. The court shortened VanHorn's period of disqualification from licensure to July 1, 2003, and Brunk's period of disqualification to July 1, 2004.

The Commission appealed to this court, and VanHorn and Brunk cross-appealed. See Brunk v. Nebraska State Racing Comm., supra. We concluded the district court was correct in finding that there was insufficient evidence to support the Commission's determination that VanHorn and Brunk violated the Commission's rules concerning the administration of certain medications. However, we reversed the district court's finding that Brunk cooperated with the Commission's investigation. We held that the penalties assessed by the district court were proportionate to the seriousness of the offenses, except as to the issue of Brunk's cooperation with the Commission. We concluded that Brunk's disqualification period should be extended by 6 months, to January 1, 2005.

This court's opinion was filed on July 22, 2005, and the mandates were issued on August 25. Subsequently, VanHorn and Brunk each filed an "Application for Damages, Costs and Fees" in the district court. They alleged that after the Commission perfected its appeals, they were advised by the Commission that the modification of their suspensions from licensure was stayed pending appeal pursuant to Neb.Rev.Stat. §§ 25-21,213 and 25-21,216 (Reissue 1995). because the Commission's orders of December 31, 2002, remained in effect pending appeal, VanHorn and Brunk were allegedly unable to acquire licensure until the mandate of this court was issued in August 2005. They claimed the Commission's appeals denied them the opportunity to practice their trade at horseracing events until after this court's decision. VanHorn claimed lost income of $294,000 for the 2004 and 2005 racing seasons, and Brunk claimed lost income of $250,000 for the 2005 racing season.

The Commission moved to dismiss pursuant to Neb. Ct. R. of Pldg. in Civ. Actions 12(b) (rev.2003), asserting that the district court lacked jurisdiction over the subject matter and/or that the complaints failed to state a claim upon which relief could be granted. The cases were consolidated for argument.

In summary, VanHorn and Brunk claimed they were deprived of income because the Commission appealed the district court's earlier decisions. They asserted that if a supersedeas bond had been required, they would have been entitled to damages from the Commission for any further damages that might result from an appeal. VanHorn and Brunk requested monetary damages for lost earnings during the pendency of the appeals. They argued that if the State had not appealed, VanHorn could have applied for a license for the racing seasons of 2004 and 2005 and Brunk would have been permitted to apply for a license for the racing season of 2005. They claimed that the statutes, which acted as a supersedeas, deprived them of the opportunity to work and that they should be compensated accordingly.

The district court noted that under § 25-21,213, when the State is a party, no appeal or supersedeas bond is required and the filing of a notice of intention to appeal operates as a supersedeas. The record showed that VanHorn and Brunk had not asked either the district court or this court for damages as a result of the Commission's appeals. The district court determined it did not have jurisdiction to consider the requests for damages, and it sustained the Commission's motions to dismiss. The court also concluded it lacked jurisdiction to award attorney fees or costs on appeal except as directed by the mandates of an appellate court, and the mandates here did not include an award of attorney fees.

ASSIGNMENTS OF ERROR

VanHorn and Brunk assert that the district court erred in determining that it lacked jurisdiction to consider their requests for damages and in sustaining the Commission's motions to dismiss.

ANALYSIS

When a lower court lacks the authority to exercise its subject matter jurisdiction to adjudicate the merits of the claim, issue, or question, an appellate court also lacks the power to determine the merits of the claim, issue, or question presented to the lower court. Kaplan v. McClurg, 271 Neb. 101, 710 N.W.2d 96 (2006). The district court here concluded it lacked authority to take any action other than that stated in the mandates issued by this court. The mandates informed the district court that its earlier decisions concerning VanHorn and Brunk had either been affirmed or affirmed as modified, and the mandates directed the district court to, "without delay, proceed to enter judgment in conformity with the judgment and opinion of [the Nebraska Supreme Court]."

This court has stated:

When an appellate court remands a cause with directions, the judgment of the appellate court is a final judgment in the cause, and the entry thereof in the lower court is a purely ministerial act. No modification of the judgment so directed can be made, nor may any provision be engrafted on or taken from it. That order is conclusive on the parties, and no judgment or order different from, or in addition to, that directed by it can have any effect, even though it may be such as the appellate court ought to have directed.

K N Energy, Inc. v. Cities of Broken Bow et al., 248 Neb. 112, 115, 532 N.W.2d 32, 34 (1995) (K N Energy, Inc., II).

In K N Energy, Inc., II, the district court had, in part, enjoined certain municipalities from continuing to enforce gas rate ordinances which were subsequently challenged by K N Energy. The Nebraska Court of Appeals reversed the judgment and remanded the cause for a new trial. See K N Energy, Inc. v. Cities of Broken Bow et al., Nos. A-91-848 through A-91-851, 1992 WL 322016 (Neb.App. Nov.10, 1992) (not designated for permanent publication). Upon further review, this court reversed the judgment of the Court of Appeals and remanded with direction to reinstate the enforcement of rates prescribed by the municipalities' ordinances. K N Energy, Inc. v. Cities of Broken Bow et al., 244...