Opinion ID: 1710357
Heading Depth: 1
Heading Rank: 3

Heading: Denial of Procedural and Substantive Due Process

Text: For its first point for reversal, Mid-South presents numerous allegations in support of its contention that it was denied both procedural and substantive due process in the various board meetings and hearings below. We find no merit to any of the allegations. Mid-South argues that it was denied due process because the alleged false statements made on the June 1994 application were mentioned in the December 1, 1995 hearing. Mid-South asserts that the doctrine of res judicata precluded the Board from using any falsifications on the 1994 application against Mid-South during the application-renewal process in 1995. Mid-South argues that it was improper for the Board to consider its June 1994 license application in consideration of its license renewal at the December 1, 1995 hearing. The abstract reflects that Mid-South objected to the 1994 application's admission as an exhibit on the basis that it was irrelevant because it had already been considered and denied. On appeal, however, Mid-South argues that the admission of the 1994 application was barred by the doctrine of res judicata. Hence, we do not reach the merits of this point, as an appellant may not change the grounds for his objection on appeal. Hinson v. Eaton, 322 Ark. 331, 908 S.W.2d 646 (1995). Even if this argument had been properly preserved for appeal, we would nonetheless affirm the actions of the Board, as it may reconsider its own decisions, especially where there is evidence of fraud or misrepresentations, in order to correct any previous error in granting a license. See, e.g., North Hills Memorial Gardens v. Simpson, 238 Ark. 184, 381 S.W.2d 462 (1964); Earp v. Benton Fire Dep't, 52 Ark. App. 66, 914 S.W.2d 781 (1996); McCarty v. Board of Trustees, 45 Ark.App. 102, 872 S.W.2d 74 (1994). The ability of the Board to reconsider its previous decisions is particularly necessary in a case such as this, where it was through the Board's investigation of the 1995 renewal application that it was discovered that there were false statements contained in the 1994 application. Mid-South next contends that the circuit court's failure to call for an evidentiary hearing was clearly erroneous as there were several procedural irregularities at the Board level concerning off-the-record proceedings and Mid-South's lack of ability to cross-examine a witness at the July 1994 hearing. Mid-South's argument as to this issue must fail because Mid-South never requested an evidentiary hearing nor made application to the circuit court for such pursuant to section 25-15-212(f) for leave to present additional evidence. Hence, Mid-South may not raise this issue for the first time on appeal. Butler Constr. Co., 295 Ark. 223, 748 S.W.2d 129. Mid-South next argues that the Board failed to provide proper notice of the allegations so that Mid-South could properly have prepared its defense. As previously noted, Mid-South objected to the inadequacy of the first notice, and, in response, the Board reset the hearing and sent a detailed amended notice. At the December 1, 1995 hearing, Mid-South again objected to the inadequacy of the amended notice, asserting that it had not properly been informed of the allegations and that it had not been provided with discovery of all the documents relied upon by the Board. In response to Mid-South's objection at the December 1995 hearing, the hearing officer asked if Mid-South desired an additional continuance in the matter, to which Mid-South responded that it did not want a continuance. On appeal, Mid-South contends that had the notice been adequate and had it obtained the documents not provided in discovery prior to the hearing, it would have been better prepared to defend the allegations. We are not persuaded by Mid-South's argument on this point because it was given the opportunity to correct any alleged discovery or notice violations by moving for a continuance in order to better prepare its defense. Given that Mid-South did not find the alleged discovery violations egregious enough to warrant its request for a continuance, we cannot see where it has demonstrated any prejudice on appeal. This court had repeatedly stated that we will not reverse absent a demonstration of prejudice. National Bank of Commerce v. Quirk, 323 Ark. 769, 918 S.W.2d 138 (1996); Caplener v. Bluebonnet Milling Co., 322 Ark. 751, 911 S.W.2d 586 (1995). Lastly, Mid-South argues that the Board's members were biased against it and, as such, it was error for the circuit court not to conduct an evidentiary hearing. Again, Mid-South's argument must fail because there is no evidence that it ever requested the circuit court for leave to present additional evidence on this allegation. We further note Mid-South's counsel was allowed to voir dire the Board members as to any bias they may have had against Mid-South. With one Board member having previously recused, Mid-South's counsel then announced that he was comfortable with the remainder of the Board and was ready to proceed. Thus, Mid-South has effectively waived any challenge to the Board based upon its pronounced satisfaction with the composition of the Board during the December 1995 hearing.