Administrative Law – due process, appeals following hearing: Commonwealth, Cabinet for Health and Family Services v. Gambrel’s Food Mart, Inc. (C0A 8/28/2009)

Commonwealth, Cabinet for Health and Family Services v. Gambrel's Food Mart, Inc.
2008-CA-001243 8/28/09 2009 WL 2633576

Opinion by Judge Stumbo; Chief Judge Combs and Senior Judge Buckingham concurred.
The Court affirmed a judgment of the circuit court holding that appellee should not be disqualified from participating as a vendor in Kentucky’s Women, Infants and Children (WIC) program. The Court first held that 902 KAR 4:040 Section 11(1)(b) and the federal WIC regulation, specifically 7 C.F.R. § 246.18(a)(1)(ii)(G) (2009), gave the vendor a right to an administrative hearing. The Court then held that the circuit court had jurisdiction over the matter. While the state regulation did not mention appeal to a court, because appellant was appealing not only its disqualification but also arguing the Cabinet was acting arbitrarily and in violation of the Kentucky and U.S. Constitutions, judicial review was proper. The Court then held that by allowing appellant a hearing but then not allowing review of the determination that there would be inadequate participant access if appellant were disqualified, the Cabinet acted arbitrarily. The Court ultimately held that the hearing officer relied upon substantial evidence in determining that there would be inadequate participant access if appellant were disqualified and therefore, the circuit court properly upheld that finding.