Washington Suburban Sanitary Commission v. Lafarge North America, Inc.

Summary

The Maryland Court of Appeals held that a Washington Suburban Sanitary Commission refund claim is deemed finally denied when the Commission fails to decide it within the 180-day period required by Maryland law. The court concluded that the denial was subject to judicial review and that the reviewing court could remand with directions to calculate and issue the appropriate refund, rather than give the Commission another opportunity to deny the claim. The court affirmed the judgment requiring the Commission to determine and issue a refund to Lafarge North America, Inc.

Holdings

1. The Court of Special Appeals had jurisdiction to review the circuit court's judgment because a WSSC refund claim for which the claimant requests a hearing is a contested case under Maryland's Administrative Procedure Act, and State Government Article § 10-223 authorizes an appeal to the intermediate appellate court.
2. When the WSSC fails to decide a refund claim within 180 days, the claim is deemed finally rejected by operation of law under Public Utilities Article § 25-106(d), and the claimant may seek judicial review of that deemed denial.
3. When a deemed denial is unsupported by substantial evidence and arbitrary and capricious because the WSSC failed to act timely, the reviewing court may reverse the denial and remand with directions to calculate and issue the appropriate refund; the WSSC may not reconsider whether to deny the refund altogether.
4. The court did not decide whether the circuit court erred by ordering production of the WSSC's investigative file because the issue was moot after the court affirmed the limited remand and the WSSC failed to show prejudice.

Questions Presented

1. Whether the Court of Special Appeals had jurisdiction to review the circuit court's judgment in a WSSC refund-claim proceeding.
2. Whether a refund claim for which a hearing is requested under Public Utilities Article § 25-106 constitutes a contested case under Maryland's Administrative Procedure Act.
3. Whether a reviewing court may reverse a deemed denial of a refund claim that is unsupported by substantial evidence and arbitrary and capricious and remand only for calculation and issuance of the refund, thereby foreclosing a second opportunity for the WSSC to deny the claim.
4. Whether the circuit court improperly ordered production of the WSSC's investigative file as part of the agency record.

Disposition

affirmed