Kroehle Lincoln Mercury v. Bur. of Motor Veh., 2006-T-0093 (9-28-2007)
Kroehle Lincoln Mercury v. Bur. of Motor Veh., 2006-T-0093 (9-28-2007)
Opinion of the Court
{¶ 2} Procedural History and Statement of Facts *Page 2
{¶ 3} This appeal stems from an administrative decision issued in October 1999. On December 28, 1998, following an inspection of the Kroehle premises, appellee, Ohio Motor Vehicle Dealers Board ("Board") sent a letter to Kroehle president, Hugh G. Kroehle ("Mr. Kroehle"), advising him that his company was not in compliance with the requirements for being licensed as a used automobile dealer. In particular, the investigator found that Mr. Kroehle did not post the proper business sign or business hours, did not have proper records, and did not maintain an established place of business. The inspector's subsequent report, dated September 24, 1999, also noted that at the time of the inspection, the gate was locked, the location was unattended, and no sign or business hours were displayed.
{¶ 4} Mr. Kroehle requested an adjudicatory hearing, which was held on September 29, 1999. The inspector testified regarding his investigation of the business and concluded that based upon the above deficiencies that Mr. Kroehle was not in compliance with the requirements for a used car dealership. He also testified that in the preceding two years, Mr. Kroehle had only sold two vehicles.
{¶ 5} Because Mr. Kroehle was unable to attend the hearing, he submitted a letter, which was admitted into evidence. In the letter, Mr. Kroehle advised the Board that he collects and sells antique cars by appointment to mostly out-of-state collectors. Mr. Kroehle stated that the business is closed during the winter months when he resides in Arizona. He further stated that he and his accountant keep detailed records pertaining to the dealership, and he attached to his letter an inventory list. With respect to the business sign, Mr. Kroehle acknowledged that he does not keep a large permanent sign posted but instead displays a temporary sign when he is expecting a *Page 3 customer. Mr. Kroehle asked the Board to waive the requirement that there be posted a permanent sign with six inch lettering.
{¶ 6} On October 12, 1999, in its adjudication order the Board issued findings of fact and conclusions of law. The Board found that in each of the inspections that took place on March 31, 1997, October 19, 1998, and September 24, 1999, the dealership location was closed, unattended, with no sign identifying the dealership, and with no business hours posted. The board concluded that Mr. Kroehle violated R.C.
{¶ 7} On October 18, 1999, Mr. Kroehle filed a notice of appeal to the Trumbull County Court of Common Pleas. On that same date, Mr. Kroehle filed a motion for a stay order suspending enforcement of the adjudication order revoking his license. On October 25, 1999, the Board filed a brief in response to the motion for a stay order. A hearing was held and in an order dated November 18, 1999, the trial court granted Mr. Kroehle's stay motion on the ground that Mr. Kroehle would suffer irreparable harm and unusual hardship if his license was suspended.
{¶ 8} Less than a week later, on November 24, 1999, Mr. Kroehle filed a motion for "summary judgment" on the ground that the Board failed to certify a complete record to the common pleas court within thirty days from the filing of the October 18, 1999 notice of appeal, as required by R.C.
{¶ 9} The Board filed a brief in response on December 15, 1999, and alleged that it did comply with the certification requirements of R.C.
{¶ 10} On January 21, 2000, the trial court overruled Mr. Kroehle's motion, which it considered as "a motion for a finding in Plaintiff-Appellant's favor pursuant to R.C.
{¶ 11} The parties submitted trial briefs. It appears that no further action was taken by the trial court until July 21, 2006. On that date, the trial court issued a judgment entry affirming the adjudicatory order of the Board revoking Mr. Kroehle's motor vehicle dealer's license.
{¶ 12} Mr. Kroehle filed the instant appeal, raising three assignments of error:
{¶ 13} "[1.] The trial court erred in its denial of Appellant's motion for summary judgment based upon Appellee's failure to timely comply with the record certification requirements of O.R.C. [sic] 119.12.
{¶ 14} "[2.] The trial court erred in its conclusion that the board had probative reliable and substantial evidence to find that Appellant had violated R.C.
{¶ 15} "[3.] The trial court erred in its conclusion that the board had probative reliable and substantial evidence to find that Appellant had violated R.C.
{¶ 16} Certification of Record
{¶ 17} The initial issue before this court is whether the Board timely prepared and certified to the common pleas court the record of the proceedings in this case. R.C.
{¶ 18} "Within thirty days after receipt of a notice of appeal from anorder in any case in which a hearing is required * * * the agency shallprepare and certify to the court a complete record of the proceedings inthe case. Failure of the agency to comply within the time allowed, upon motion, shall cause the court to enter a finding in favor of the party adversely affected. Additional time, however, may be granted by the court, not to exceed thirty days, when it is shown that the agency has made substantial effort to comply. * * *" (Emphasis added.)
{¶ 19} The Supreme Court of Ohio has interpreted what is meant by a proper certification of the record for purposes of a R.C.
{¶ 20} The general rule is that where "the agency has not prepared and certified to the court a complete record of the proceedings within [thirty] days after a receipt of *Page 6
the notice of appeal and the court has granted the agency no additional time to do so, the court must, upon motion of the appellant, enter a finding in favor of the appellant and render a judgment for the appellant." Matash v. State (1964),
{¶ 21} However, the Supreme Court of Ohio has subsequently held that an agency's "nonprejudicial omission of items from a certified record should not result in an automatic finding for appellant." Arlow v. OhioRehab. Svcs. Com'n. (1986),
{¶ 22} In this respect, unlike that portion of R.C.
{¶ 23} Turning to the case at hand, the evidence demonstrates that the Board took affirmative action to prepare and certify to the common pleas court a complete record of the administrative proceedings within the thirty day time period and to notify Mr. Kroehle's counsel of the certification. Not only did the Board submit the complete record to the clerk of courts but it also made the effort to verify the clerk's receipt of the record. This is not the ordinary case where the agency has failed to timely certify the record within thirty days or has submitted an incomplete record that prejudices the appellant. What transpired here is, as the trial court found, unusual in that it is more akin to a clerical error than a failure of certification. As the trial court so aptly found, "[t]he fact that [the] documents have not been time-stamped appears to be a clerical error and not a failure to timely certify." *Page 8
{¶ 24} Under Civ.R. 60(A), a clerical error is that type of error "identified with mistakes in transcription, alteration or omission of any papers and documents which are traditionally or customarily handled or controlled by clerks * * *. It is a type of mistake or omission mechanical in nature which is apparent on the record and which does not involve a legal decision or judgment by an attorney * * *." Dentsply Intl.Inc., v. Kostas (1985),
{¶ 25} Under these circumstances, we agree with the trial court's refusal to enter a finding in favor of Mr. Kroehle based upon a lack of compliance with the certification requirements of R.C.
{¶ 26} We overrule Mr. Kroehle's first assignment of error.
{¶ 27} Failure to Comply With Used Motor Vehicle Dealer's LicensingRequirements *Page 9
{¶ 28} In his second and third assignments of error, Mr. Kroehle challenges the trial court's decision revoking its used motor vehicle dealer's license.
{¶ 29} The standard of review for an administrative decision is set forth in R.C.
{¶ 30} Location and Signage Requirements
{¶ 31} The Board found that Mr. Kroehle had violated R.C.
{¶ 32} R.C.
{¶ 33} O.A.C. 4501:1-3-03(A) provides that: "No applicant shall be issued a license unless his application shall show the business for which the license is sought is equipped with a suitable sign, properly maintained and prominently displayed, and permanent, identifying the ownership of said business in the same name in which the application is filed. Sign letters identifying the business shall be no less than six inches high unless otherwise approved by the registrar."
{¶ 34} The trial court found that there was competent, credible evidence to support the Board's revocation of Mr. Kroehle's license based on the failure of Mr. Kroehle to meet these requirements. In particular, the court found relevant that on three separate occasions; the Bureau of Motor Vehicle field inspector observed no sign identifying the "dealership" and found that the business was closed.
{¶ 35} Mr. Kroehle admitted that the business is closed during the winter months when he resides in Arizona and also conceded in a letter written to the registrar of the bureau of motor vehicles, which was admitted into evidence, that the business does not post a permanent sign and that the temporary sign he uses contains four-inch rather than the required six-inch lettering, as required by OAC 4501:1-3-03(A). In this letter, Mr. Kroehle admitted: "I do have a temporary sign that I place when I am expecting a customer. The letters are four inches high * * *." Mr. Kroehle asked the Board to waive the permanent sign requirement.
{¶ 36} Despite these admissions, Mr. Kroehle now asserts that the Board's decision was not based on reliable, probative evidence because the inspections took place at a time when the inspector was unable to gain access to the premises. Mr. Kroehle also contends that Ohio used dealership law does not require any specific *Page 11 hours of operation. Mr. Kroehle further maintains that the inspector's testimony that Mr. Kroehle failed to comply with the requirements for a used car dealership was inadmissible since he was not qualified as an expert.
{¶ 37} We reject these contentions and find no abuse of discretion in the trial court's decision. Not only was there competent, credible evidence presented to show that Mr. Kroehle failed to abide by the signage requirements, but the evidence also demonstrates Mr. Kroehle's failure to operate an "established place of business" used exclusively to sell, display, offer for sale, or deal in motor vehicles as required in R.C.
{¶ 38} In order to be deemed an "established place of business," OAC 4501:1-3-08(A) expressly states that the "structure shall be occupied by the dealership and staffed by a person who is licensed * * * and could reasonably assist any retail customer with or without an appointment." In addition, this code section requires that "[t]he dealership shall be easily accessible from a public roadway and shall be identifiable as a motor vehicle dealership to the public and open for business. The business hours shall be prominently posted on the premises." Again, by Mr. Kroehle's own admission, his "dealership" was "open" for business by appointment only, in direct contravention to the pertinent statutory and code sections.
{¶ 39} We also find no merit in Mr. Kroehle's argument that the inspector's testimony was inadmissible expert testimony. To begin with, the inspector was not testifying as an expert witness. He was simply testifying as a lay witness describing what he observed while conducting his inspections. This testimony, along with the inspection reports describing the deficiencies and Mr. Kroehle's own letter admitting *Page 12 non-compliance were admitted into evidence without objection by Mr. Kroehle. Mr. Kroehle can hardly claim prejudicial error.
{¶ 40} Mr. Kroehle's second assignment of error is overruled.
{¶ 41} Failure to Maintain Proper Business Records
{¶ 42} In his third assignment of error, Mr. Kroehle contends that the trial court erred in finding that it violated R.C.
{¶ 43} R.C.
{¶ 44} Mr. Kroehle advised the Board in his September 22, 1999 letter that he did maintain records of his dealership but that the records were stored by his accountant. He also told the Board that he could make the records available upon request. Mr. Kroehle argues that the law does not require that the records be kept on site or be made available on demand. Rather, Mr. Kroehle contends that he complied with the record-keeping requirements since his accountant maintained the records and because they were available upon request.
{¶ 45} R.C.
{¶ 46} The judgment of the Trumbull County Court of Common Pleas is affirmed.
*Page 1DIANE V. GRENDELL, J., TIMOTHY P. CANNON, J., concur.
Reference
- Full Case Name
- Kroehle Lincoln Mercury, Inc. v. Bureau of Motor Vehicles
- Cited By
- 1 case
- Status
- Published