Case Title: Industrial Accident Board v. O'DOWD

Citation: 303 S.W.2d 763

Docket Number: A-6264

State: texas

Court: Texas Supreme Court

Date: 1957-06-12T00:00:00Z

Document:
303 S.W.2d 763 (1957) INDUSTRIAL ACCIDENT BOARD, Petitioner, v. E. H. O'DOWD et al., Respondents. No. A-6264. Supreme Court of Texas. June 12, 1957. Rehearing Denied July 17, 1957. *764 Will Wilson, Atty. Gen., John H. Minton, Jr., and John Reeves, Asst. Attys. Gen., for petitioner. Richard Critz, F. L. Kuykendall, Austin, for respondents. NORVELL, Justice. The Court of Civil Appeals held on authority of Francisco v. Board of Dental Examiners, Tex.Civ.App., 149 S.W.2d 619, wr. ref., that that portion of Article 8307, § 4, Vernon's Ann.Tex.Stats. purporting to authorize the barring of persons guilty of unethical or fraudulent conduct from practicing before the Industrial Accident Board was unconstitutional and void for failure to provide for notice and hearing as required by the due process clauses of the state and federal constitutions. Article 1, § 19, Texas Constitution, Vernon's Ann.St. Fourteenth Amendment to the Constitution of the United States. See Industrial Accident Board v. O'Dowd, Tex.Civ.App., 298 S.W.2d 657. Being of the tentative opinion (which has since been confirmed) that the Francisco case does not control this appeal, we granted the writ of error. In their reply to the application for the writ, respondents say that the opinion of the Court of Civil Appeals does not discuss all the grounds urged by them in support of the trial court's order enjoining the Board from enforcing its suspension order. Under the view taken by the Court of Civil Appeals a discussion of additional bases to support its decision was patently unnecessary. However, being of the opinion that the order cannot be supported upon the grounds considered by the Court of Civil Appeals it becomes our duty to examine all contentions properly brought forward by respondents as the prevailing parties in the Court of Civil Appeals which they say would support the trial court's judgment. Vanover v. Henwood, 136 Tex. 348, 150 S.W.2d 785. We shall first consider the holding of the Court of Civil Appeals. That portion of Article 8307, § 4 now under attack reads as follows: The Court of Civil Appeals has held that this statutory provision is invalid because of a failure to provide for a notice of hearing as required by the due process clauses of the state and federal constitutions. The essential facts may be briefly stated. Respondents E. H. O'Dowd and M. M. O'Dowd are practicing attorneys residing in Waco, McLennan County, Texas. On April 30, 1955, the Board notified respondents that on May 16, 1955, a hearing would be held pursuant to complaints received as to their alleged unethical and fraudulent conduct in connection with workmen's compensation cases before the Industrial Accident Board. Such hearing was held on the date set and on May 20, 1955, the Board entered an order finding respondents guilty of unethical conduct in seven cases and guilty of fraudulent conduct in fourteen cases pending before the Board and suspended them from practicing before the Board for a period of three years from and after May 20, 1955. The trial court by temporary injunction restrained the Board from enforcing this order and this action was affirmed by the Court of Civil Appeals. It seems that under the statute it is contemplated that a hearing be had before action is taken. We have provisions relating to process and procedure, the subpoenaing of witnesses, inquiries into facts and the like, all of which are pertinent to a hearing or examination. The statute does not explicitly provide for a notice of hearing. Does this render the statute void? To our minds, Francisco v. Board of Dental Examiners, Tex.Civ.App., 149 S.W.2d 619, 622, wr. ref. does not reach the point. There the statute provided that the Board of Dental Examiners should revoke a dental license upon receipt of a certified copy of the record showing that a licensee had been convicted of insanity or a felony involving moral turpitude. There was no requirement for a hearing and hence none for notice. In fact the statutory direction to the Board was to proceed without hearing and without notice. As pointed out by the Court, "the order operates instanter, and the licensee is at once deprived of the right lawfully to practice his profession." There is language in Stuart v. Palmer. 74 N.Y. 183, 30 Am.Rep. 289,[1] decided in 1878 which lends some support to the proposition that a statute of the species now before us must contain an express provision for notice otherwise it will be held invalid, viz.: "It is not enough that the owners may by chance have notice, or that they may as a matter of favor have a hearing. The law must require notice to them and give them a right to a hearing and an opportunity to be heard." A holding that a statute must expressly provide for notice or it is invalid is patently unsound. It is a common thing for a court to recognize and enforce implied or implicit clauses in both statutes and contracts. To hold that implied provisions could not be afforded validity when a constitutional due process clause is involved would be to reverse the general *766 rule of construction that a statute must be construed so that it will be constitutional and hence valid if the language thereof is reasonably susceptible to such construction. Obviously if the explicit provisions of a statute direct an administrative board to proceed without notice in contravention of the constitutional due process requirements (as in the Francisco case) there would be no room for a presumption that the Legislature intended that a notice be given. However, on the other hand, we must assume that the Legislature intended to enact a valid law, and in the absence of express language to the contrary, intended that the administrative board should proceed in accordance with constitutional requirements. The Board here construed the statute as requiring notice and notice was actually given. Under these circumstances the following language from American Power & Light Co. v. Securities and Exchange Commission, 329 U.S. 90, 67 S. Ct. 133, 143, 91 L. Ed. 103, seems applicable: Another statement of the prevailing rule upon the subject is found in Caughman v. Columbia, Newberry & Laurens Ry. Co., 82 S.C. 418, 64 S.E. 240, 242, viz.: Likewise in McManus v. Industrial Commission, 53 Ariz. 22, 85 P.2d 54, 56, the Supreme Court of Arizona said: See, also, Kennard v. Louisiana, ex rel. Morgan, 92 U.S. 480, 23 L. Ed. 478; Kentucky Railroad Tax Cases (Cincinnati, New Orleans & Texas Pacific R. Co. v. Commonwealth of Kentucky), 115 U.S. 321, 6 S. Ct. 57, 29 L. Ed. 414; Shealey v. Seaboard Air Line Ry. Co., 131 S.C. 144, 126 S.E. 622; Smith v. State Board of Medical Examiners, 140 Iowa 66, 117 N.W. 1116; Hecht v. Monaghan, 307 N.Y. 461, 121 N.E.2d 421; Tatlow v. Bacon, 101 Kan. 26, 165 P. 835, 14 A.L.R. 269; Robitzsch v. State, 189 Ga. 637, 7 S.E.2d 387. Respondents say that although we might disagree with the holding of the Court of Civil Appeals the order of the trial court should nevertheless be affirmed because: (1) The Industrial Accident Board cannot prohibit an attorney at law from practicing before it. (2) The statute is invalid because it fails to provide (a) for judicial review, (b) contains no proper definition of unethical or fraudulent conduct. (3) The trial court did not abuse its discretion in weighing the equities of the case and thereupon granting the temporary injunction. The statute does not specifically deal with attorneys at law. It provides that the Board may "bar persons guilty of unethical or fraudulent conduct from practicing before the Board." In our opinion the power of the Legislature to thus authorize an administrative body or branch of the executive department of government to control its operations and require ethical and good faith practice from those appearing before it cannot be gainsaid. Goldsmith v. United States Board of Tax Appeals, 270 U.S. 117, 46 S. Ct. 215, 70 L. Ed. 494. The order before us is not a general disbarment of an attorney at law and hence not subject to the provisions of the State Bar Act, Article 320a-1, Vernon's Ann.Tex. Stats. The statutory prohibition against a general disbarment without a jury trial contained in 320a-1, § 5 has no application to the present proceedings. The right to practice before an administrative board when once granted is admittedly a valuable right and entitled to protection under the due process clauses of the state and federal constitutions. In Francisco v. Board of Dental Examiners, Tex.Civ.App., 149 S.W.2d 619, wr. ref., the Court quoted with approval the following from Waller v. State, Tex.Civ.App., 68 S.W.2d 601, wr. ref., viz.: This being true, the rule of Fire Department of City of Fort Worth v. City of Fort Worth, 147 Tex. 505, 217 S.W.2d 664, 666, is applicable. In the cited case, this Court said: See also White v. Bolner, Tex.Civ.App., 223 S.W.2d 686, wr. ref., following Fire Department of City of Fort Worth v. City of Fort Worth; and, City of Amarillo v. Hancock, 150 Tex. 231, 239 S.W.2d 788 in which White v. Bolner is discussed and approved. While it is settled that the question of whether an administrative order is reasonably supported by substantial evidence cannot be determined upon a hearing for a temporary injunction, Transport Co. of Texas v. Robertson Transports, 152 Tex. 551, 261 S.W.2d 549, respondents are undoubtedly entitled to litigate such issue upon the merits. We accordingly overrule their contention that the statute is void because it contains no express provision for a judicial review of the Board's order. As bearing upon the contentions that the statute or the present proceedings under it are invalid because of the indefinite meaning of the terms unethical or fraudulent conduct, the record is not as complete as might be desired. The same situation exists when an attempt is made to weigh the equities in order to determine whether a temporary injunction should issue to preserve the status quo until a final judgment can be rendered. It seems that the parties in the trial court desired to present primarily the question of "notice" as affecting the validity of the statute. The allegations of the petition filed by respondents as plaintiffs were traversed fully by the verified answer of the Industrial Accident Board. For the purposes of this particular hearing only it was stipulated that "the testimony referred to in * * * (the Board's answer) as that factual information upon which the Board's order was predicated might also be considered by the Court in the trial upon the application for temporary injunction." From the record, we cannot ascertain the method of procedure employed by the Board. Its order of suspension purports to find respondents guilty of seven acts of "unethical conduct" and fourteen acts of "fraudulent conduct" thus indicating that the Board construes the statute as prescribing two classes of offenses for which a suspension may be ordered. Unethical conduct is a somewhat indefinite term and generally has reference to certain prescribed standards or rules of behavior adopted by a profession itself or some other proper authority. From the record *769 we are unable to ascertain if the Board has adopted any such rules or canons. The word "fraudulent", however, is said to possess a well known signification, 37 C.J.S. p. 835, and the term "fraudulent conduct" on the part of an attorney at law has been defined as "an act, omission or concealment done, made or effected as an attorney with a purpose, design or intent to carry out fraud or wrong." Rowland v. State, Tex.Civ.App., 55 S.W.2d 133, 137. In view of a prospective trial upon the merits and the restrictions placed upon the use of the stipulation before us, we comment no further than to say that if the "factual information" contained in the Board's answer and referred to in the trial stipulation be accepted as testimony, it supports a charge of fraudulent conduct. It follows that respondent's attack upon the Board's order charging indefiniteness of accusation or lack of proof necessarily fails. As above indicated, the pleadings and stipulations afford no basis for the issuance of a temporary injunction on the theory that the better equity requires such action to maintain the status quo or prevent serious injury to respondents pending a trial upon the merits. Under the stipulation of the parties, the only "evidence" which the trial judge was authorized to consider consisted of the factual allegations contained in the Board's answer. As might be supposed, this "evidence" was all one way and wholly failed to disclose that respondents had a probable right or were threatened with a probable injury which would justify equitable intervention. Upon the record made in the trial court, our holding that the statute is valid effectually destroys the preliminary injunction. The judgments of the District Court and the Court of Civil Appeals are both reversed and judgment here rendered vacating the temporary injunction. [1] Stuart v. Palmer is quoted with approval by the Supreme Court of the United States in Coe v. Armour Fertilizer Works, 237 U.S. 413, 35 S. Ct. 625, 59 L. Ed. 1027. For a later pronouncement by the United States Supreme Court, see American Power & Light Co. v. Securities and Exchange Commission, 329 U.S. 90, 67 S. Ct. 133, 91 L. Ed. 103, discussed infra. It seems that an explicit provision for notice is not now insisted upon by the New York courts. People ex rel. Morriale v. Branham, 291 N.Y. 312, 52 N.E.2d 881; Hecht v. Monaghan, 307 N.Y. 461, 121 N.E.2d 421.