IMO the Suspension or Revocation of the License of Joseph Fichner, Jr.
Case Date: 06/18/1996
Docket No: SYLLABUS
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(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
In the Matter of the Suspension or Revocation of the License of Joseph Fichner, Jr., etc. (A-125-95)
Argued March 11, 1996 -- Decided June 18, 1996
O'HERN, J., writing for a unanimous Court.
The State Plumbing License Law of 1968 created the Board of Examiners of Master Plumbers
(Board) and authorized it to license and regulate plumbers throughout the State. The Board examines and
licenses those plumbers meeting the qualifications necessary to become a "master plumber." The Board has
promulgated regulations that define occupational misconduct and fraud and set forth the penalties for such
acts. Pursuant to the regulations, a plumber who charges excessive prices commits occupational misconduct.
Joseph Fichner, Jr. is a licensed master plumber. The Board has twice charged Fichner with
occupational misconduct because of fraudulent business practices, including charging excessive prices. From
the first set of charges that occurred in 1988, the Board found Fichner guilty of occupational misconduct and
fraud for overcharges to five customers. Fichner was reprimanded, ordered to provide restitution, and fined
$5,000. That decision was affirmed by the Appellate Division.
The current group of charges, consisting of eight counts, was filed by the Attorney General on July
30, 1992 and focused on Fichner's conduct in dealing with seven customers. The Attorney General alleged
that Fichner engaged in fraud and occupational misconduct by charging excessive prices and by providing
misleading explanations of his prices and services. The Attorney General, in her capacity as counsel to the
Board, retained Robert Muller, a licensed master plumber accepted as an expert, to visit the homes of each
customer to determine what work was done, and to present his opinion as to the reasonableness of the
charges based on the time and parts used at each job. Muller calculated that Fichner had overcharged each
customer, often by as much as 100%.
Fichner challenged the methodology and theory of excessive pricing used by Muller. Fichner
presented several plumbing and accounting experts who testified that prices should be derived by calculating
several factors, including office overhead. Those experts concluded that even if one accepted the time and
parts estimates offered by the State's expert, Fichner's fees were not excessive, but simply reflected his
overhead plus a profit margin ranging from negative to 39" profit.
The Board adopted the methodology and conclusions of the State's expert and concluded that
Fichner's charges were excessive in all seven cases. In addition, the Board relied on Fichner's misleading use
of the term "rebuilt" and his use of illegible estimates as evidence that his conduct was fraudulent. The
Board assessed $35,000 in civil penalties; ordered Fichner to make restitution to each customer; ordered him
to pay administrative costs of $10,000; and ordered a suspension of his license for five years, agreeing to stay
that suspension if Fichner paid all of the penalties.
The Appellate Division concluded that three of the Board members were ineligible, rejecting the
Attorney General's arguments concerning the de facto officer doctrine. The court reasoned that the
haphazard appointment of so many statutorily unqualified persons to a Board with such important functions
displays indifference to the appointment process and, thus, does not deserve the protection of the de facto
officer doctrine. The court also determined that the vote of a fourth member could not be counted because
that member had not attended any of the hearings. Because the governing statute requires that a decision to
discipline be made by a majority of the members of the entire Board, the Appellate Division invalidated the
Board's decision. The court remanded for a hearing before a properly constituted Board, without
considering any of Fichner's other arguments.
The Supreme Court granted the State's petition for certification.
HELD: In the circumstances of this case, a reconstituted Board of Examiners of Master Plumbers should
reconsider the charges against Joseph Fichner, Jr., and may do so on the record already developed
in these proceedings.
1. The de facto officer doctrine is founded on principles of practicality and convenience in the administration
of justice. New Jersey law has long recognized the existence of the de facto officer doctrine. The questioned
members of the Board had been duly appointed by the Governor but certain requirements or conditions of
office had not been met; therefore, those members were de facto officers. (pp. 10-12)
2. The U.S. Supreme Court has declined to invoke the de facto officer doctrine in cases that involve basic
constitutional protections designed in part for the benefit of the litigants. Here, the error in the composition
of this Board is not of constitutional dimension. The Court does not agree with the Appellate Division that
the qualifications of the public member were established for the benefit of the litigants, nor is it at all certain
that the qualifications of the other members were established for the benefit of the licensees. Nevertheless,
in the unusual circumstances of this case, the Appellate Division's disposition will stand. In the future,
however, challenges to the statutory composition of a board must be made prior to the conclusion of the
Board proceedings. Here, a remand for reconsideration of the matter by a properly composed Board will
serve the interest of the public and the licensee. It is not necessary to conduct a new hearing; the Board may
impose discipline on the basis of the existing record. It is in the public interest that this four- year litigation
be resolved with reasonable promptness. Principles of administrative due process will be satisfied by a
careful assessment of the record and the extent of any penalty may be reconsidered in light of that
assessment. (pp. 13-18)
As MODIFIED, the judgment of the Appellate Division is AFFIRMED.
CHIEF JUSTICE WILENTZ and JUSTICES HANDLER, POLLOCK, GARIBALDI, STEIN and
COLEMAN join in JUSTICE O'HERN's opinion.
SUPREME COURT OF NEW JERSEY
IN THE MATTER OF THE SUSPENSION OR
REVOCATION OF THE LICENSE OF
JOSEPH FICHNER, JR.
TO ENGAGE IN THE PRACTICE OF MASTER
PLUMBING IN THE STATE OF NEW JERSEY
Argued March 11, 1996 -- Decided June 18, 1996
On certification to the Superior Court,
Appellate Division, whose opinion is reported
at
282 N.J. Super 422 (1995).
Bertram P. Goltz, Jr., Deputy Attorney
General, argued the cause for appellant Board
of Examiners of Master Plumbers (Deborah T.
Poritz, Attorney General of New Jersey,
attorney; Joseph L. Yannotti, Assistant
Attorney General, of counsel).
W. Peter Ragan argued the cause for
respondent Joseph Fichner, Jr. (Blankenhorn &
Ragan, attorneys).
The opinion of the court was delivered by
qualifications for exercise of the office and another had not
heard any of the evidence at the relevant disciplinary
proceedings, the Appellate Division ordered the proceedings to
commence anew. We are satisfied, in the circumstances of this
case, that a reconstituted board should reconsider the charges,
but we hold that it may do so on the basis of the record
developed in these proceedings.
The claimed irregularities arose out of an administrative proceeding, conducted by the State Board of Examiners of Master Plumbers (Board), that resulted in a $35,000 fine assessed against Joseph Fichner and possible revocation of his license. The State Plumbing License Law of 1968, N.J.S.A. 45:14C-1 to -27, created the Board of Examiners of Master Plumbers and authorized it to license and regulate plumbers throughout the state. The Board examines and licenses those plumbers meeting the qualifications necessary to become a "master plumber," as defined by N.J.S.A. 45:14C-2(a). The Board originally consisted of seven members: three master plumbers with ten years experience, one local plumbing inspector who has held such appointment for at least ten years, one journeyman plumber with ten years experience, and two representatives of the public having no association with the plumbing industry. N.J.S.A. 45:14C-3. The Legislature has since added two additional members to represent the interests of the public, one of which is a
holder of a designated office or position in a department of the
Executive Branch of the State Government that is closely related
to the plumbing profession. N.J.S.A. 45:1-2.2(b),(c). However,
because this State Government position and one of the Section
14C-3 public member positions were vacant, only a seven member
Board participated in the final decision in this case.
Attorney General alleged that Fichner engaged in fraud and
occupational misconduct by charging excessive prices and by
providing misleading explanations of his prices and services.
Regarding each of the seven charged incidents, the customer
and Mr. Fichner presented the Board with their versions of what
occurred. In addition, the Attorney General, in her capacity as
Counsel to the Board, retained Robert Muller, a licensed master
plumber accepted as an expert, to visit each customer's home,
determine what work was done, and present his view as to the
reasonableness of the charge based on the time and parts used at
each job.
Another customer called A-1 Plumbing after she discovered
water in her basement along with smoke and a burning smell. She
was hysterical and in a state of panic before Fichner arrived.
He came quickly and examined the problem. He gave her an
estimate of $735, and she told him to fix the problem. Fichner
fixed the problem. The customer testified that Fichner did a
good job but that his work took less than one hour and that he
was nasty with her on the phone when she attempted to stop
payment on her check. The State's expert agreed that the job
should have taken not more than one hour. Fichner testified that
he had given the customer an estimate in advance, worked for 2-3/4 hours on the problem, and was not nasty on the telephone
after the customer stopped payment on her first check. However,
he was upset with customers who tried to renegotiate an agreed
price after he had already done the work. He could not take back
the work, and customers were trying to take advantage of that
fact.
kitchen sink, simply by replacing the washer. Fichner said that
he spent two hours working on the two problems, and that he used
$40 in parts. There were similar disputes about the facts of
each case, sometimes even between the State's expert and the
complaining customers.
excessive in all seven cases because they exceeded "the usual and
customary price for the service rendered." In addition, the
Board relied on Fichner's misleading use of the term "rebuild"
and his use of illegible estimates as evidence that his conduct
was fraudulent.
In early 1995, Fichner added additional information. He had
discovered that a third member was ineligible. The Appellate
Division ordered the State to submit "the specific credentials of
each Board member who participated . . . and explain how those
credentials relate to the [statutory mandates.]" The Attorney
General filed a brief, conceding that two members were ineligible
but disputing the claim about a third member, and arguing that
their votes should still be counted under the de facto officer
doctrine.
This does not deserve the protective gloss of
the de facto doctrine.
The court distinguished this case from holdings in other
jurisdictions "because the plain language of the appointing
statute disqualified them from holding office," but conceded that
other courts had not made this distinction. Id. at 427.
The court noted that the member had not submitted any such
certification, but decided that such a certification would have
been insufficient.
It is one thing to miss a meeting or two and
be able to render a fair and impartial
decision on the matter. It is quite another
to miss every meeting and vote in a case in
which the testimony of every lay and expert
witness required an evaluation of
credibility. No such evaluation could have
been made by Landolfi from the cold record.
The governing statute requires that a decision to discipline
be by a majority of the members of the entire Board. N.J.S.A.
45:1-2.2(d). Of the seven members who voted for the discipline,
three lacked the statutory qualifications and one was not
familiar with the record. Accordingly, the court invalidated the
Board's decision because it was not approved by a majority. It
remanded for a hearing before a properly constituted board
without considering any of Fichner's other arguments. Id. at
429-30.
The essence of the de facto officer doctrine is that one who claims to be a public officer while in possession of an office and ostensibly exercising its functions lawfully and with the acquiescence of the public is a de facto officer whose lawful acts, so far as the rights of others are concerned, are, if done within the scope and by the apparent authority of the office, as
valid and as binding as if the officer were legally qualified for
the office and in full possession of it. In re Bunker Hill Urban
Renewal Project 1B of Community Redevelopment of City of Los
Angeles,
389 P.2d 538, 552 (Cal.), cert. denied sub nom. Babcock
v. Community Redevelopment Agency of Los Angeles,
379 U.S. 899,
85 S. Ct. 185,
13 L. Ed.2d 174 (1964). Although rooted in
antiquity,See footnote 3 the de facto officer doctrine serves the needs of
contemporary society. Clokey, supra,
85 Colum. L. Rev. 1121,
1121. Like so many other principles of the common law, the
doctrine is founded on tenets of practicality and convenience in
the administration of justice.
Our law has long recognized the existence of the de facto
officer doctrine. In Jersey City v. Department of Civil Service,
57 N.J. Super. 13 (App. Div. 1959), Judge Goldman traced New
Jersey's acceptance of the doctrine. The question in that case
was whether there can be a de facto holder of a position that has
no de jure existence, that is, an office that is not in full
compliance with all requirements of law. The court adopted the
view of the doctrine expressed in State v. Carroll,
38 Conn. 449
(Sup. Ct. Err. 1871), the leading case on the subject. "`An
officer de facto is one whose acts, though not those of a lawful
officer, the law, upon principles of policy and justice, will
hold valid so far as they involve the interests of the public and
third persons, where the duties of the office were exercised.'"
Jersey City, supra, 57 N.J. Super. at 27 (quoting Carroll, supra,
38 Conn. at 471-72). An example of when de facto office holding
is recognized is when the officer holds office "under color of a
known and valid appointment or election, but where the officer
had failed to conform to some precedent requirement or condition,
as to take an oath, give a bond, or the like." Ibid. (quoting
Carroll, supra, 38 Conn. at 471-72).
The challenge here is almost identical to that raised in
Feinblum v. Louisiana State Board of Optometry Examiners,
97 So.2d 657 (La. Ct. App. 1957). In that case, the statute
provided that each member of the Board be appointed from a list
submitted by an organization that had ceased to exist. The
Governor, however, had been appointing members to the Board from
a list that was not in accordance with the statute. The court
held that the Board members were de facto officers and that the
optometrist could not successfully enjoin the Board from holding
any hearings on charges against the optometrist on the ground
that the Board was illegally constituted. Id. at 663.
individuals subject to that official's authority. A breach of
these statutes gives individuals a sufficiently personalized
injury to challenge official action on the ground of defective
title [to the offices]." Clokey, supra,
85 Colum. L. Rev. at
1135. An example is in the composition of draft boards. That
the registrant's draft status be determined by "neighbors" was
sufficiently important to allow the title of the Board members to
be raised in a collateral attack by a draft resister. United
States v. Beltran,
306 F. Supp. 385, 387 (N.D. Cal. 1969).
qualifications of the public member were established "for the
benefit of litigants" and are not at all certain that the
qualifications of the other members were established for the
benefit of the licensees. In the unusual circumstances of this
case, we are satisfied to let stand the Appellate Division's
disposition, although we will insist in the future that
challenges to the statutory composition of a board (at least
insofar as entitlement to office is concerned) be made prior to
the conclusion of the Board proceedings. Little effort is
required to ascertain such qualifications. In Ryder v. United
States, 515 U.S. ___,
115 S. Ct. 2031,
132 L. Ed.2d 136 (1995),
the Supreme Court permitted a constitutional challenge to the
composition of the Board of Military Review but only because the
issue had been raised in a direct challenge while the case was
pending before that Board, implying that a challenge such as
Fichner's should have been raised before the hearing board.
preclude `signing on the dotted line.'" Ibid. (quoting 15 U.L.A.
§ 11 at 141-42 (comment)).
3:23-8(a). And although it is true that in contested
administrative matters a reviewing body must give considerable
deference to the actual findings of the one who hears the
evidence, agency heads retain the power to make the ultimate
findings of fact. Clowes v. Terminix Int'l,
109 N.J. 575, 587
(1988). CHIEF JUSTICE WILENTZ and JUSTICES HANDLER, POLLOCK, GARIBALDI, STEIN and COLEMAN join in JUSTICE O'HERN's opinion.
NO. A-125 SEPTEMBER TERM 1995
IN THE MATTER OF THE SUSPENSION
JOSEPH FICHNER, JR.
TO ENGAGE IN THE PRACTICE OF
DECIDED June 18, 1996
Footnote: 1One appointed to the position reserved by N.J.S.A. 45:14C-3 for a plumbing inspector with more than ten years of experience as of the date of appointment had only four years experience; one appointed to the additional public seat reserved by N.J.S.A. 45:1-2.2b for one who has no "association or relationship with the profession or a member thereof . . . where such association or relationship would prevent such public member from representing the interest of the public" was the business representative for the plumbers union; another appointed to the position reserved for journeyman plumbers by N.J.S.A. 45:14C-2(f) was a licensed master plumber. The Attorney General argued that because the member in the journeyman position never rendered plumbing services to the public under this license, he was eligible to serve as the designated journeyman plumber. In view of the disposition we make, we need not debate the validity of this argument. Footnote: 2The court rejected the Attorney General's claim that "it is too late in the day for Fichner to be raising questions concerning the statutory eligibility qualifications of Board members" because the court believed that it would be too difficult to investigate board misconduct during the hearing and it wished to allow licensees time to discover violations. 282 N.J. Super. at 429. However, the court warned that "by no means is our holding an invitation to others to reopen Board proceedings previously decided and no longer under appellate review." Ibid. Footnote: 3Proving once again the old adage, plus ca change, plus c'est la meme chose (the more things change, the more they remain the same), "[t]he de facto officer doctrine finds its earliest expression in The Abbe de Fontaine. [Y.B. 9 Hen. 6, f. 32, pl. 3 (1431).] In that case, a convent tried to avoid a bond obligation, claiming the abbot who guaranteed it improperly assumed office after losing the election." Kathryn A. Clokey, Note, The De Facto Officer Doctrine: The Case for Continued Application, 85 Colum. L. Rev. 1121, 1125 (1985) (footnote omitted) [hereinafter Clokey].
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