Thurman v. Ohio Dep’t of Ins., 2nd Dist. No. 2008-CA-81

Administrative proceedings are subject to res judicata, and collateral attack on previous discipline was improper.

Summary:

Appellant was subject to a 2003 order of the Department that revoked his license, but suspended the revocation on the condition that he pay restitution to victims of his misconduct.  The 2003 order stated that failure to maintain and complete the restitution schedule would result in enforcement of the revocation order.  Appellant did not appeal the 2003 order.

In 2007, the Department revoked Appellant’s license after a hearing finding that Appellant failed to comply with the restitution order.  Appellant admitted at hearing that he had not complied with the order.  Appellant asserted, however, that certain investors had forgiven his debt, or accepted alternative payment plans, and that he had complied with the spirit and general substance of the order.  The court did not accept the Appellant’s argument, and found that he had failed to comply with the 2003 order.

Appellant further attempted to challenge the merits of the 2003 order.  The court found that the Department’s administrative proceedings were judicial in nature and subject to res judicata.  Appellant failed to appeal the 2003 order, and was barred from relitigating the propriety of the Department’s original order.  The appeals court affirmed the decision of the lower court.  (AAG Aaron Epstein).