536.050. Declaratory judgments respecting the validity of rules--fees and expenses--standing, intervention by general assembly.
Declaratory judgments respecting the validity of rules--fees andexpenses--standing, intervention by general assembly.
536.050. 1. The power of the courts of this state to renderdeclaratory judgments shall extend to declaratory judgments respecting thevalidity of rules, or of threatened applications thereof, and such suitsmay be maintained against agencies whether or not the plaintiff has firstrequested the agency to pass upon the question presented. The venue ofsuch suits against agencies shall, at the option of the plaintiff, be inthe circuit court of Cole County, or in the county of the plaintiff'sresidence, or if the plaintiff is a corporation, domestic or foreign,having a registered office or business office in this state, in the countyof such registered office or business office. Nothing herein containedshall be construed as a limitation on the declaratory or other relief whichthe courts might grant in the absence of this section.
2. Any person bringing an action under subsection 1 of this sectionshall not be required to exhaust any administrative remedy if the courtdetermines that:
(1) The administrative agency has no authority to grant the reliefsought or the administrative remedy is otherwise inadequate; or
(2) The only issue presented for adjudication is a constitutionalissue or other question of law; or
(3) Requiring the person to exhaust any administrative remedy wouldresult in undue prejudice because the person may suffer irreparable harm ifunable to secure immediate judicial consideration of the claim. Provided,however, that the provisions of this subsection shall not apply to anymatter covered by chapters 288, 302, and 303, RSMo; or
(4) The party bringing the action is a small business claiming amaterial violation of section 536.300 or 536.303 by the state agencyrequiring the small business impact statement for the amendment or rule.
3. A nonstate party who prevails in an action brought pursuant tosubsection 1 of this section shall be awarded reasonable fees and expenses,as defined in section 536.085, incurred by that party in the action.
4. A nonstate party seeking an award of fees and other expensesshall, within thirty days of a final disposition of an action broughtpursuant to subsection 1 of this section, submit to the court whichrendered the final disposition or judgment an application which shows thatthe party is a prevailing party and is eligible to receive an awardpursuant to this section, and the amount sought, including an itemizedstatement from any attorney or expert witness representing or appearing inbehalf of the party stating the actual time expended and the rate at whichfees and other expenses are computed.
5. A prevailing nonstate party in an agency proceeding shall submitan application for fees and expenses to the court before which the partyprevailed. The filing of an application shall not stay the time forappealing the merits of a case. When the state appeals the underlyingmerits of an adversary proceeding, no decision on the application for feesand other expenses in connection with that adversary proceeding shall bemade pursuant to this section until a final and unreviewable decision isrendered by the court on the appeal or until the underlying merits of thecase have been finally determined pursuant to the appeal.
6. The court may either reduce the amount to be awarded or deny anyaward, to the extent that the prevailing nonstate party during the courseof the proceedings engaged in conduct which unduly and unreasonablyprotracted the final resolution of the matter in controversy.
7. The decision of a court on the application for reasonable fees andexpenses shall be in writing, separate from the judgment or order of thecourt which determined the prevailing party, and shall include writtenfindings and conclusions and the reason or basis therefor. The decision ofa court on the application for fees and other expenses shall be final,subject respectively to appeal or judicial review.
8. If a party or the state is dissatisfied with a determination offees and other expenses made in an action brought pursuant to subsection 1of this section, that party or the state may, within the time permitted bylaw, appeal that order or judgment to the appellate court havingjurisdiction to review the merits of that order or judgment. The appellatecourt's determination shall be based solely on the record made before thecourt below. The court may modify, reverse or reverse and remand thedetermination of fees and other expenses if the court finds that the awardor failure to make an award of fees and other expenses, or the calculationof the amount of the award, was arbitrary and capricious, was unreasonable,was unsupported by competent and substantial evidence, or was made contraryto law or in excess of the court's jurisdiction. Awards made pursuant tothis section shall be payable from amounts appropriated therefor. Thestate agency against which the award was made shall request anappropriation to pay for the award.
9. The general assembly or its designee shall have standing, in lawor equity, to intervene in any existing action involving such challenge toagency action. Unless otherwise provided by resolution, the generalassembly's designee is the joint committee on administrative rules who may,upon a concurrence of a majority of the committee's members, intervene inthe name of the members of the committee in their representative capacity.Nothing in this section shall confer upon the committee any duty to so actor intervene.
(L. 1945 p. 1504 § 5, A.L. 1978 S.B. 661, A.L. 1996 S.B. 720, A.L. 1997 H.B. 850, A.L. 2005 H.B. 576)(1982) Statutory provisions which purport to authorize the Administrative Hearing Commission to render declaratory judgments are unconstitutional as violative of Section 1, Article V of the Missouri Constitution. State Tax Commission v. Administrative Hearing Commission (Mo.banc), 641 S.W.2d 69.
(1993) Where action is based on specific facts involving named entities and is a challenge to an agency decision, jurisdiction to challenged decision is vested in the administrative hearing commission under section 208.156, RSMo. Because action challenged an agency decision and not an agency rule, this section does not allow a declaratory judgment action to be brought in the circuit court. Missouri Health Care Association, EBG III, Inc. v. Missouri Department of Social Services, 851 S.W.2d 567 (Mo.App.W.D.).