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Collins v. Arkansas Board of Embalmers & Funeral Directors

Citations: 2013 Ark. App. 678; 430 S.W.3d 213; 2013 WL 6001927; 2013 Ark. App. LEXIS 691Docket: CV-13-230

Court: Court of Appeals of Arkansas; November 13, 2013; Arkansas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case concerns the denial of reinstatement applications for funeral director and establishment licenses previously revoked by the Arkansas Board of Embalmers and Funeral Directors. The appellants, whose licenses were suspended and subsequently revoked after repeated violations—including operating without a license and misrepresentation—challenged the Board's decision as lacking substantial evidence and being arbitrary and capricious. Following affirmance of the initial suspension and revocation orders by the circuit court, the appellants sought reinstatement but were again denied after evidence demonstrated continued unauthorized funeral operations post-revocation. The Board’s decision was based on statutory authority under Arkansas Code Annotated sections 17-29-201 et seq. and was affirmed by the circuit court, which found substantial evidence supporting the Board's actions. On appeal, the appellants raised constitutional arguments regarding due process, equal protection, and sex discrimination, and alleged bias among Board members. The reviewing court held that such constitutional claims were not preserved for appellate review, as they were not raised before the Board. The court also noted that hearsay is admissible in administrative proceedings if reliable and that prior judicial affirmance of the suspension precluded relitigation under res judicata. Ultimately, the Board’s denial of reinstatement was upheld as supported by substantial evidence and not arbitrary or capricious, leaving the revocation of appellants’ licenses intact.

Legal Issues Addressed

Admissibility of Hearsay in Administrative Proceedings

Application: The Board’s reliance on certain hearsay evidence was permissible, as hearsay is generally admissible in administrative proceedings if reliable.

Reasoning: Hearsay is generally admissible in administrative proceedings if reliable.

Authority of Arkansas State Board of Embalmers and Funeral Directors

Application: The Board acted within its statutory authority under Arkansas Code Annotated sections 17-29-201 et seq. in denying reinstatement based on a history of violations.

Reasoning: The Arkansas State Board of Embalmers and Funeral Directors, as per Arkansas Code Annotated sections 17-29-201 et seq., regulates funeral services, including licensure and compliance enforcement, with authority to suspend or revoke licenses for violations (sections 17-29-311 and 17-29-307).

Consideration of Post-Decision Evidence

Application: The expungement of Ms. Collins’s criminal record after the Board’s denial of reinstatement was not considered, as it was not presented to the Board.

Reasoning: Although her criminal record for operating a funeral home without a license was expunged post-Board decision, this expungement was not presented to the Board.

Finality and Preclusion under Res Judicata

Application: The prior affirmance of Ms. Collins’s license suspension in April 2008 precluded relitigation of that issue in subsequent proceedings.

Reasoning: The initial suspension in April 2008 was previously affirmed in court, thus barring relitigation under res judicata.

Grounds for Reversal of Administrative Decisions

Application: The court clarified that an administrative decision may only be reversed if it violates the law, exceeds the agency’s authority, is unlawfully made, or lacks substantial evidence.

Reasoning: The court noted that an administrative decision can be reversed only if it violates laws, exceeds authority, is made unlawfully, or lacks substantial evidence.

Pattern of Noncompliance as Basis for License Denial

Application: Substantial evidence of continued unauthorized funeral services after license revocation supported the Board’s denial of reinstatement.

Reasoning: Despite claims of improper suspension, evidence indicated that the appellants continued conducting funerals post-revocation, demonstrating a pattern of disregard for the Board's orders.

Preservation of Constitutional Arguments for Appellate Review

Application: Claims regarding constitutional violations, including sex discrimination and due process, were not preserved for appellate review as they were not raised before the Board.

Reasoning: Additionally, many constitutional arguments, including those regarding sex discrimination, were not raised before the Board and are thus not preserved for appellate review, as established in prior case law.

Recusal of Administrative Board Members

Application: Motions for recusal based on former positions or alleged bias were found to be unsupported by evidence or statute.

Reasoning: Ms. Collins' motion for Board member Garland Camper to recuse himself, citing his prior position as Pulaski County Coroner, was unfounded, as that position does not disqualify him under Ark. Code Ann. 17-29-201. There was no evidence of bias against Ms. Collins by Mr. Camper or any other Board members.

Substantial Evidence Standard in Administrative Agency Review

Application: The court applied the substantial evidence standard to determine whether the Board's findings in denying reinstatement of licenses were supported by the record.

Reasoning: The appellate review focused on whether there was substantial evidence supporting the Board’s findings, emphasizing that administrative agencies are better suited to handle such matters due to their expertise.