Opinion ID: 1611827
Heading Depth: 1
Heading Rank: 5

Heading: Controlling Standard of Review.

Text: The district court's hearing on this case was conducted on December 11, 1998. The district court decided the case on March 29, 1999. On both these dates, the district court's standard of review was that the district court may not disturb the decision of the Commission unless it was arbitrary and unreasonable. See, Grand Island Latin Club, supra ; Marting, supra . The district court applied the correct standard of review. After the district court entered its order, the Legislature revised Neb.Rev. Stat. § 53-1,116 (Reissue 1998), effective May 25, 1999. As revised, § 53-1,116 (Cum.Supp.2000) provides as follows: Any order or decision of the commission granting, denying, suspending, canceling, revoking, or renewing or refusing to suspend, cancel, revoke, or renew a license, special designated permit, or permit for the sale of alcoholic liquor, including beer, may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act. Under the Administrative Procedure Act (APA), the district court reviews an appeal without a jury de novo on the record of the agency. Neb.Rev.Stat. § 84-917(5)(a) (Reissue 1999). As noted above, because the district court entered its order prior to May 25, 1999, the APA standard did not yet apply to the district court in the instant case. Prior to the amendment to § 53-1,116, an appeal of a Commission decision to this court or the Court of Appeals from the district court was reviewed de novo on the record. Grand Island Latin Club, supra ; Marting, supra . Under the APA, however, this court or the Court of Appeals reviews the appeal from the judgment or final order of the district court for errors appearing on the record. Neb.Rev.Stat. § 84-918(3) (Reissue 1999). The amendment to § 53-1,116, providing that appeals shall be in accordance with the Administrative Procedure Act, was procedural in nature, and therefore, this court and the Court of Appeals are to apply the standard of review found in the APA for any appeals decided by this court or the Court of Appeals on or after May 25, 1999, the effective date of the amendment. See Jackson v. Branick Indus., 254 Neb. 950, 581 N.W.2d 53 (1998). The Court of Appeals decided this case on June 20, 2000. For this court or the Court of Appeals to decide the appeal from the district court for errors appearing on the record, however, would deny the parties any de novo review of the Commission's decision, thus depriving the parties of their due process rights. See, generally, Rose Equip., Inc. v. Ford Motor Co., 248 Neb. 344, 535 N.W.2d 404 (1995); In re Interest of M.W. and R.W., 1 Neb.App. 378, 497 N.W.2d 396 (1992). Accordingly, appellate review of the district court's order in this transitional case is de novo on the record. We note that although it relied on authority which was superseded by legislative amendment, the Court of Appeals reviewed the decision of the district court de novo on the record and, accordingly, applied the correct standard of review in this case.