Lee v. DCBS
DCBS
Citation
341 Or. App. 175
Court
Court of Appeals of Oregon
Decided
June 4, 2025
Jurisdiction
SA
Importance
45%
Practice Areas
Case Summary
No. 517 June 4, 2025 175 This is a nonprecedential memorandum opinion pursuant to ORAP 10.30 and may not be cited except as provided in ORAP 10.30(1). IN THE COURT OF APPEALS OF THE STATE OF OREGON Kevin J. LEE, Petitioner, v. DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, Respondent. Department of Consumer and Business Services INS190008; A182238 Argued and submitted April 1, 2025. Kevin J. Lee argued the cause and filed the briefs pro se. Ellen F. Rosenblum, Attorney General, Benjamin Gutman, Solicitor General, and Jon Zunkel-deCoursey, Assistant Attorney General, filed the brief for respondent. Before Ortega, Presiding Judge, Lagesen, Chief Judge, and Hellman, Judge. HELLMAN, J. Affirmed. 176 Lee v. DCBS HELLMAN, J. Petitioner, appearing pro se, seeks judicial review of a final order of the Department of Consumer and Business Services (DCBS) that revoked his insurance licenses and assessed civil penalties. On judicial review, petitioner argues that the final order is not supported by substantial evidence. We affirm. “We review an agency’s order in a contested case for errors of law, ORS 183.482(8)(a), substantial evidence, ORS 183.482(8)(c), and substantial reason.” Dorn v. Teacher Standards and Practices Comm., 316 Or App 241, 243, 504 P3d 44 (2021). “Substantial evidence exists to support a find- ing of fact when the record, viewed as a whole, would permit a reasonable person to make that finding.” ORS 183.482. “Substantial reason exists where the agency has articulated a rational connection between the facts and the legal conclu- sion that the agency draws from them.” Dorn, 316 Or App at 243 (internal quotation marks omitted). “Our review is restricted to the record.” Id. (citing ORS 183.482(7)); see also ORS 183.417(9) (defining “[t]he record in a contested case”). A detailed recitation of the facts would not benefit the bench, the bar, or the public. Petitioner held securities sales, insurance provider, and insurance consultant licenses in Oregon for several years. In 2017, the Federal Industry Regulatory Authority (FINRA) contacted petitioner to determine if he had violated any federal securities laws when he provided investment advice to his former neigh- bors. In 2018, petitioner filed a resident insurance license renewal application with the state and represented that he had not “been named or involved as a party in an adminis- trative proceeding, including FINRA sanction.” DCBS sub- sequently alleged that petitioner “act[ed] as a state invest- ment adviser in Oregon without a state investment license,” provided “misleading information” on his insurance license applications by not disclosing the FINRA investigation, and that he engaged in “fraudulent, coercive, or dishonest prac- tices.” At the contested hearing, the daughter of petitioner’s former neighbors, petitioner, and a DCBS financial enforce- ment officer testified, and the administrative law judge (ALJ) received into evidence numerous exhibits offered by Nonprecedential Memo Op: 341 Or App 175 (2025) 177 each party. The ALJ ruled in favor of DCBS and issued a proposed order. DCBS adopted the ALJ’s proposed order as the final order. We have reviewed each of petitioner’s 18 separate arguments concerning the final order and conclude that petitioner presents no basis to reverse. Many of petitioner’s arguments dispute DCBS’s interpretation of the facts, but we do not reweigh evidence on appeal. See Gaylord v. DMV, 283 Or App 811, 822, 391 P3d 900 (2017) (“When in a review role, a court does not review for the better evidence.”). Many of petitioner’s arguments also depend on his testimony— which DCBS found not credible—and we do not revisit cred- ibility on appeal. See id. (“A substantial evidence review does not entail or permit the reviewing tribunal to reweigh or to assess the credibility of the evidence that was presented to the fact-finding body.” (Internal quotation marks omitted.)) And petitioner’s arguments do not establish that DCBS committed any legal error in its analysis. In sum, substan- tial evidence supports DBCS’s findings of fact, and the order provides substantial reason for its conclusions. Petitioner has not demonstrated any legal error on DCBS’s part. Affirmed.
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Status
Decided
Date Decided
June 4, 2025
Jurisdiction
SA
Court Type
federal
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Case Summary
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Case Overview
Case Name: Lee v. Department of Consumer and Business Services
Citation: 341 Or. App. 175
Court: Court of Appeals of Oregon
Date: June 4, 2025
In the case of Lee v. DCBS, the Oregon Court of Appeals reviewed a final order from the Department of Consumer and Business Services (DCBS) that revoked the insurance licenses of Kevin J. Lee and imposed civil penalties. The petitioner, representing himself, challenged the order on the grounds that it lacked substantial evidence.
Key Legal Issues
- Judicial Review of Agency Orders: The court examined the standards for reviewing agency decisions, particularly regarding substantial evidence and legal reasoning.
- Misrepresentation in Licensing Applications: The case involved allegations of misleading information provided by the petitioner in his insurance license applications.
Court's Decision
The Oregon Court of Appeals affirmed the DCBS's final order, concluding that substantial evidence supported the findings and that the agency had articulated a rational basis for its conclusions. The court emphasized that it does not reweigh evidence or assess credibility on appeal.
Legal Reasoning
The court's analysis focused on several key points:
- Substantial Evidence Standard: According to ORS 183.482, substantial evidence exists when a reasonable person could make a finding based on the entire record.
- Credibility Assessments: The court noted that credibility determinations made by the DCBS are not subject to review, reinforcing the agency's authority in fact-finding.
The court reviewed 18 arguments presented by the petitioner, most of which disputed the interpretation of facts by DCBS. However, the court found that none provided a valid basis for reversal.
Key Holdings
- The court upheld the DCBS's findings that Lee acted as a state investment adviser without the necessary license.
- The court confirmed that Lee misrepresented his involvement in an administrative proceeding related to a FINRA investigation when renewing his insurance license.
- The court ruled that the DCBS's order was supported by substantial evidence and articulated substantial reasoning.
Precedents and Citations
- Dorn v. Teacher Standards and Practices Comm., 316 Or App 241 (2021): Established the standards for reviewing agency orders regarding substantial evidence and legal reasoning.
- Gaylord v. DMV, 283 Or App 811 (2017): Clarified that appellate courts do not reweigh evidence or assess credibility in agency reviews.
Practical Implications
This case underscores the importance of transparency and accuracy in licensing applications, particularly in regulated industries such as insurance and finance. Legal professionals should note the following implications:
- Agency Authority: The decision reinforces the authority of regulatory agencies to enforce compliance and investigate misrepresentations.
- Pro Se Representation: Individuals representing themselves in legal matters should be aware of the complexities involved in challenging agency decisions and the importance of presenting credible evidence.
- Legal Precedents: The case serves as a reminder of the importance of established legal precedents in guiding judicial review processes.
In conclusion, Lee v. DCBS serves as a pivotal case in understanding the standards for judicial review of agency actions in Oregon, emphasizing the necessity for substantial evidence and the limitations of appellate review in assessing credibility and factual determinations.
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Case Details
Legal case information
Status
Decided
Date Decided
June 4, 2025
Jurisdiction
SA
Court Type
federal
Legal Significance
Case importance metrics
Metadata
Additional information
Quick Actions
Case management tools