Nw. Ala. Treatment Ctr., Inc. v. Ala. Dep't of Mental Health (Ex parte Ala. Dep't of Mental Health)

207 So.3d 743

Ex parte ALABAMA DEPARTMENT OF MENTAL HEALTH and Commissioner James V. Perdue, in his official capacity as commissioner of the Alabama Department of Mental Health.

(In re Northwest Alabama Treatment Center, Inc.

v.Alabama Department of Mental Health and Commissioner James V. Perdue, in his official capacity as commissioner of the Alabama Department of Mental Health).

2150415.

Court of Civil Appeals of Alabama.

April 22, 2016.

Luther Strange, atty. gen., and Thomas B. Klinner, gen. counsel, and Edward C. Hixon, asst. atty. gen., Alabama Department of Mental Health, Montgomery, for petitioners.

William J. Baxley, Joel E. Dillard, and David McKnight of Baxley, Dillard, McKnight, James & McElroy, Birmingham, for respondent.

DONALDSON, Judge.

The Alabama Department of Mental Health ("ADMH") and James V. Perdue, in his official capacity as commissioner of ADMH ("the commissioner"), petition this court for a writ of mandamus to the Jefferson Circuit Court, Bessemer Division ("the trial court"), directing that court to set aside an order dated January 13, 2016, granting a stay of ADMH's interim decision to revoke the certification of Northwest Alabama Treatment Center, Inc. ("Northwest"), and to dismiss the proceedings in the trial court. To the extent that ADMH and the commissioner seek a writ of mandamus instructing the trial court to dismiss the proceedings, we deny the petition. Further, we construe ADMH's petition, in part, i.e., insofar as it seeks review of the January 13, 2016, order granting a stay of ADMH's interim decision, to be an appeal. In turn, we dismiss the appeal for lack of appellate jurisdiction.

Background

Pursuant to § 22–50–9, Ala.Code 1975, ADMH, a department of state government, is authorized, through its commissioner, "to act in any prudent way to provide mental health services ... for the people of Alabama." ADMH is authorized pursuant to § 22–50–11(11), Ala.Code 1975, to

"establish and promulgate reasonable minimum standards for the construction and operation of facilities, including reasonable minimum standards for the admission, diagnosis, care, treatment, transfer of patients or clients and their records, and also including reasonable minimum standards for providing day care, outpatient care, emergency care, inpatient care and follow-up care when such care is provided for persons, with mental or emotional illness...."

In their petition to this court, ADMH and the commissioner assert that opioid-maintenance therapy facilities (commonly referred to as methadone clinics), in order to conduct operations in Alabama, must be certified by ADMH pursuant to Ala. Admin Code (ADMH), Rule 580–3–23–.06. Pursuant to Ala. Admin Code (ADMH), Rule 580–3–23–.16(4), the commissioner has the authority to decertify an entity "for any material neglect of, disregard of, or noncompliance with these standards and/or violation of federal, state or local law. The ... Commissioner may immediately suspend or revoke any Department Certificate under these standards if the Commissioner finds that a provider's deficiencies with a standard (or standards) poses a serious threat to the safety and welfare of any consumer served as determined by the Commissioner." The materials before us show that ADMH had previously certified the facility operated by Northwest, which is located in Bessemer, to operate as an opioid-maintenance therapy facility and to dispense methadone, a schedule II controlled substance. See § 20–2–25(2)(k), Ala.Code 1975.

On November 13, 2015, the commissioner sent a letter to Robert Beeler, the executive director of Northwest, notifying Northwest of alleged deficiencies that ADMH had detected during a community-standards site visit it had conducted at Northwest's facility in September 2015.¹ The letter requested Northwest to submit a plan of action to correct the deficiencies to the Office of Certification Administration of ADMH within 30 days of the date of the letter. On December 14, 2015, the commissioner sent Beeler a letter notifying Northwest of alleged deficiencies detected during a second site visit conducted on November 10, 2015. The commissioner stated in the second letter that, "[b]ased on the recommendations of the Associate Commissioner for the Division of Mental Health and Substance Abuse Service and the provisions of the Alabama Administrative Code, § 580–3–23–.04 and § 580–3–23–.16(4), it is my intent to decertify your agency ...." (Emphasis in original.) The commissioner continued in the second letter: "I further find it necessary to revoke your Department certification as of January 15, 2016, because of deficiencies cited [that] pose a serious threat to the safety and welfare of the consumers being served." The December 14, 2015, letter referenced Northwest's right to appeal ADMH's decision and of the right to an administrative hearing on the matter.

On December 18, 2015, counsel for Northwest sent a letter to the commissioner notifying ADMH of its appeal of the decision to revoke Northwest's certification and requesting an administrative hearing. On December 30, 2015, counsel for Northwest sent correspondence by e-mail to representatives of ADMH requesting that ADMH stay its decision to revoke the certification pending the administrative appeal. That same day, Northwest filed a petition in the trial court seeking judicial review of ADMH's failure to stay its revocation of Northwest's certification pending Northwest's administrative appeal.

On January 4, 2016, the commissioner sent Northwest a notice that ADMH would not stay the decision to decertify Northwest's facility as of January 15, 2016. That same day, the trial court entered an order at the request of Northwest, stating: "Pursuant to Code of Ala., § 41–22–20(c), and the petition filed herein, the Administrative Orders of the [ADMH] dated November 13, 2015 and December 14, 2015 are stayed as to Northwest ... pending a resolution of its appeal dated December 18, 2015."

On January 6, 2016, ADMH and the commissioner filed a motion to set aside the trial court's order staying the administrative orders and a motion to dismiss the action for lack of jurisdiction, lack of standing, and improper venue. ADMH and the commissioner also contended in the motion that they had not been properly served with the summons and the complaint pursuant to Rule 4, Ala. R. Civ. P., and that the trial court had failed to provide ADMH and the commissioner with an opportunity to respond to Northwest's petition and, thus, had failed to comply with Rule 40(a), Ala. R. Civ. P. On January 8, 2016, the trial court entered an order setting the matter for a hearing on January 12, 2016.

Following the hearing held on January 12, 2016,² the trial court entered a judgment on January 13, 2016, stating:

"On January 8, 2016 the Court set a hearing on [ADMH and the commissioner's] motion to set aside this Court's January 4, 2016 Order staying administrative orders pending appeal. On January 12, the parties appeared before the Court. The parties elected to call no witnesses and submit no documentary evidence to the Court, but by their counsel answered inquiries directed to them by the Court. By agreement and without objection, the parties made specific representations and undisputed factual concessions to the Court, and were allowed to present arguments orally.

"The Court having considered all that was presented to it by the parties, in open court and via pleadings, denies the motion to set aside its January 4, 2016 order.

"[Northwest], a corporation with its registered business office and principal place of business located within the jurisdiction of the Bessemer Division of Jefferson County, is a licensed treatment center which received a notice from [ADMH and the commissioner] dated December 14, 2015, that bore a reference description entitled ‘Decertification Effective January 15, 2016’.... This notice was signed by [the commissioner] and provided, in pertinent part, ‘my decision to decertify your agency cannot become final until you have been afforded the opportunity for an administrative hearing on the matter. Should you desire to appeal my decision and request a hearing, you must notify me in writing within 15 working days after receipt of this letter. Failure to notify me within the prescribed time will result in my decision becoming final and effective 16 working days after your receipt of this letter.’ [Northwest] timely submitted an appeal and request for administrative hearing.... On January 4, 2016, [the commissioner] informed counsel for [Northwest] that its appeal and request for an administrative hearing had been received, and notified it that:

" ‘[a] hearing will be scheduled as soon as possible [and that a] hearing officer will be designated and a time and date for the administrative hearing will be scheduled as soon as possible. Once designated the hearing officer will contact you and the Department counsel to establish a date for the hearing. In accordance with Alabama Administrative Code, § 580–3–[23].15(2), I will make the final decision whether the decertification will remain in place. At the present time I cannot agree to your request for a stay.’

"... [The commissioner] provides no reason why he was unable to agree to [Northwest's] request for a stay.

"[Northwest's] petition avers that it is a licensed clinic that has operated in the jurisdiction of the Court for 23 consecutive years. It has an impeccable record of excellence and has dependent upon its continued operation hundreds of patients and 28 employees, all of whom would be abruptly denied access to the clinic for mental health treatment and employment unless a stay is granted.

"[ADMH and the commissioner] have offered the Court no evidence to the contrary. Further, [Northwest] submitted a ‘high level accreditation’ dated September 28, 2015, which it received from the Commission on Accreditation of Rehabilitation Facilities International (CARF).... In it CARF acknowledged [Northwest's]

...