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Dr. Kenneth J. Olson v. Richard Morris, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Terry Scritchlow, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Maxine Ijams, Individually and in Her Official Capacity as a Member of the Arizona Board of Psychologist Examiners, F. G. Bolton, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Wil R. Counts, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Eugene Moan, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, David Yandell, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Sydney Ramirez, Individually and in His Official Capacity as a Member of the Arizona Board of Psychologist Examiners, Francisco Gutierrez, Individually and in His Official Capacity

Citations: 188 F.3d 1083; 1999 WL 651946Docket: 98-15693

Court: Court of Appeals for the Ninth Circuit; August 27, 1999; Federal Appellate Court

Narrative Opinion Summary

In this case, a licensed psychologist and ordained minister, Dr. Kenneth Olson, was subject to disciplinary action by the Arizona Board of Psychologist Examiners following complaints of unprofessional conduct during a psychological evaluation of a child. Olson performed religious practices, including an exorcism, during the evaluation, leading to the revocation of his psychology license. Instead of appealing the Board's decision in state court, Olson filed a federal lawsuit claiming constitutional violations, including breaches of the Religious Freedom Restoration Act and his First Amendment rights. The district court ruled against Olson, affirming the Board's decision and applying the doctrine of res judicata, which precluded relitigation of issues decided at the administrative level. The court emphasized that Olson had a fair opportunity to litigate these issues during the administrative proceedings, thus giving the decision preclusive effect. Furthermore, the court granted summary judgment to the defendants based on absolute and qualified immunity, dismissing Olson's constitutional claims. The appellate court upheld the district court's decision, concluding that Olson's failure to appeal the state administrative decision barred further litigation on the matter.

Legal Issues Addressed

Failure to Appeal and Finality of Administrative Decisions

Application: Olson's failure to appeal the Board's decision under Arizona law rendered the administrative decision final and res judicata, preventing subsequent litigation on the same cause of action.

Reasoning: Under Arizona law, failing to appeal a final administrative decision results in that decision being final and res judicata, preventing a subsequent suit on the same cause of action.

Preclusive Effect of State Administrative Decisions

Application: The federal court accorded preclusive effect to the state administrative decision, as Olson had the opportunity to litigate the issues during the Board's proceedings.

Reasoning: When a state agency operates in a judicial capacity to resolve factual and legal disputes, federal courts must accord the agency's findings and legal conclusions the same preclusive effect they would receive in state courts, provided the parties had a fair opportunity to litigate those issues.

Procedural Safeguards in Administrative Hearings

Application: The court found that the administrative process adhered to procedural safeguards, thus supporting the application of res judicata.

Reasoning: The examination of the record confirms that the state administrative process adhered to the standards set by Utah Construction.

Qualified and Absolute Immunity in Federal Lawsuits

Application: The court granted summary judgment for the defendants, citing absolute and qualified immunity for the Board members and caseworkers.

Reasoning: The district court granted summary judgment for the defendants, citing absolute and qualified immunity for the Board members and caseworkers.

Res Judicata in Federal Court Proceedings

Application: The court applied the doctrine of res judicata to bar Olson from relitigating issues in federal court that were or could have been addressed in the state administrative proceedings.

Reasoning: The court ruled that the doctrine of res judicata barred Olson from relitigating issues in federal court that were or could have been addressed in the Board's proceedings.