In re Hafadai Beach Hotel Ext.
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledOctober 6, 1993
Docket93-020
JudgeAtalig, Cruz, Bellas
StatusPublished
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Full Opinion
In re Hafadai Beach Hotel Extension, 4 N.M.I. 37 (1993)
In re Hafadai Beach
Hotel Extension, Coastal Permit
Decision No. SMS-90-X-151.
Appeal No. 93-020
Civil Action No. 93-0056
Office of Coastal Resources
Management Appeal No. 92-02
Opinion and Order
October 6, 1993
Argued and Subm itted September 10, 1993
Counsel for appellant J.C. Tenorio Enterprises, Inc.: Theodore M itchell & Jeanne Rayphand, Saipan.
Counsel for appellee Hafadai Beach Hotel: David W iseman, Saipan.
BEFORE: ATALIG, Justice, and CRUZ and BELLAS, Special Judges.
ATALIG, Justice:
J.C. Tenorio Enterprises, Inc. (“appellant”), appeals from a M arch 30, 1993, decision and order of the
Superior Court affirm ing a Decem ber 24, 1992, decision of the Appeals Board (“Board”) of the Office of Coastal
Resources M anagem ent (“CRM ”). The Board’s decision affirm ed a November 5, 1992, perm it decision in which
Hafadai Beach Hotel (“appellee”) was allowed to construct an eighteen-story extension to its existing hotel,
situated in Garapan, Saipan. W e conclude that the Superior Court did not err in holding that substantial evidence
supports the Board’s decision and that neither procedural due process violations nor a misapplication of the law
occurred and for the following reasons affirm .
JURISDICTION
It is the local laws and constitution of a forum that consign jurisdiction in a court over an agency action.
See R ESTATEM ENT (S EC ON D ) O F J UD GM ENTS § 11 cm t. a (1982); 1 2 Charles Koch, Jr., A DM INISTRA TIVE L A W A N D
P R A C TIC E [hereinafter “Koch”] §§ 8.46-.48 (1985 & Supp. 1990). W e should first look to CRM ’s enabling
legislation for any jurisdictional grant. Koch, supra, § 8.46.2
Nowhere in CRM ’s enabling legislation, 2 CM C § 1411 et seq., are we afforded the jurisdiction to review
1
Sections 1 through 12 of the R ESTATEM ENT (S EC ON D ) O F J UD GM ENTS (1982) apply to administrative
procedures. See id. § 1 cmt. b, § 83 cmt. d.
2
An enabling statute “generally grants exclusive jurisdiction for review of orders to that forum (either the
district court or courts of appeals).” 2 Charles Koch, Jr., Administrative Law and Practice [hereinafter “Koch”] § 8.2
(1985 & Supp. 1990) (footnote omitted) (emphasis added). This is in contrast to the federal Administrative
Procedure Act (“APA”), which does not contain jurisdictional provisions regarding the appellate courts. See 16
Charles A. W right, Arthur R. Miller, Edward H. Cooper & Eugene Gressman, F EDERAL P R AC TIC E A N D P R O C ED U R E
§ 3941 (1977) (citing Dillard v. United States Dept. of Hous. and Urban Dev., 548 F.2d 1142, 1143 (4th Cir. 1977)
(per curiam); Noland v. United States Civil Serv. Comm’n, 544 F.2d 333, 334 (8th Cir. 1976) (per curiam)).
the Board’s decision proper. It is the trial court to which such jurisdiction has been consigned under 2 CM C §
1541(b). 3 W e have jurisdiction pursuant to 1 CM C § 3102, which affords this Court “jurisdiction over judgm ents
and orders of the Superior Court.” 4 As such, our review is lim ited to one of the propriety of the Superior Court’s
decision that substantial evidence supported the Board’s decision.5
ISSUES AND STANDARD OF REVIEW
The appellant raises thirteen issues before this Court on appeal, not all of which we feel we need to
address. However, they are categorized and listed below:
I. W hether the Superior Court erred, in reviewing the Board’s affirm ance of the perm it decision, by
applying the substantial evidence standard of 2 CM C § 1541(b).
II. W hether there was substantial evidence supporting the Board’s affirm ance of the November 5, 1992,
perm it decision.
III. W hether the appellant was denied its due process rights.6
IV. W hether a conflict of interest arose requiring disqualification of agency officials.7
V. W hether CRM failed to comply with its rules and regulations.8
VI. W hether the permit decision was arbitrary and capricious.
Our review of the trial court’s review of an agency action is de novo, In re San Nicolas, 1 N.M .I. 329,
3
“W ithin 20 days after the final discussion of the Board, a person aggrieved may appeal the decision to the
Commonwealth Trial Court.” 2 CMC § 1541(b).
4
W e are hesitant to construe jurisdiction under 1 CMC § 9113 of our APA, which affords “[a]n aggrieved
party . . . review of any final judgment of the Commonwealth Trial Court under this [Administrative Procedure Act] .
. . by appeal to the District Court for the Northern Mariana Islands.” (Emphasis added.)
5
Some appellate courts are specifically afforded review over the final agency action. See U N IFO R M L A W
C O M M ISSIO N E RS ’ M OD EL S TATE A DM INISTRA TIVE P RO CEDU RE A C T (1981), reprinted in 2 Koch, supra note 2, at
398-461, which contains alternative review provisions, vesting jurisdiction in either the district or appellate court.
Id. at 451. W e note that courts have reviewed the agency action de novo where afforded jurisdiction only over the
final orders of a district court. See, e.g., Koch, supra, § 8.54 (Supp. 1990) (“[a]ppellate court may proceed as if the
case came directly from the agency”) (citing Biloxi Regional Medical Center v. Bowen, 835 F.2d 345, 349 (D.C. Cir.
1987)); see also In re San Nicolas, 1 N.M.I. 329 (1990) and Camacho v. Northern Marianas Retirement Fund, 1
N.M.I. 362 (1990). However, we are mindful of our limited appellate role in this matter and the jurisdictional
constraints under which the scope of our review is defined. “Like agencies, the courts must obey the law. They are
not free to assume authority over agency action that has not been conferred on them by statute or the constitution.”
Koch, supra, § 9.1 (Supp. 1990).
6
Specifically: (1) whether the permit decision requires a second hearing; (2) whether the decision
constitutes taking of property without due process and just compensation; and (3) whether the appellant was required
to be involved in the permit process.
7
Specifically: (1) whether the Attorney General’s office should be disqualified for conflict of interest under
the American Bar Association Model Rules of Professional Conduct; and (2) whether the Department of Public
W orks and the Commonwealth Utilities Corporation should be disqualified for conflict of interest, as they received
funds from the developer.
8
Specifically: (1) whether the permit preserves and enhances scenic resources; (2) whether the applicant
failed to provide evidence of no significant impact on coastal resources; (3) whether the decision was made by
unanimous vote; (4) whether a conditional permit is permissible under the CRM Act of 1983 and rules and
regulations promulgated thereunder; and (5) whether setback regulations are waivable under the CRM Act and rules
and regulations.
In re Hafadai Beach Hotel Extension, 4 N.M.I. 37 (1993)
333-34 (1990) (cited in Camacho v. Northern Marianas Retirement Fund, 1 N.M .I. 362, 366-67 (1990)),9 as is our
review of the trial court’s application of a standard of review. See Robinson v. Robinson, 1 N.M .I. 81, 85-86
(1990) (applicable standard a question of law). Additionally, our review of constitutional claim s is de novo as
well. See In re Estate of Tudela, 4 N.M .I. 1, 2 (1993).
W hile we are to give no special deference to the court’s conclusion that the Board’s decision was based
upon substantial evidence, see Novicki v. Cook, 946 F.2d 938, 941 (D.C. Cir. 1991), we are to affirm if we
conclude that the court did not err in finding substantial evidence supporting the Board’s decision, see Herr v.
Sullivan, 912 F.2d 178, 180 (7th Cir. 1990), and if the Board did not m isapply the law. Id.; see also Drouin v.
Sullivan, 966 F.2d 1255, 1257 (9th Cir. 1992); McAllister v. Sullivan, 888 F.2d 599, 601-02 (9th Cir. 1989).
BACKGROUND
On Decem ber 2, 1991, CRM issued a perm it to the appellee to construct an eighteen-story extension to its
existing hotel, located in Garapan, Saipan; prior to which a public hearing was held. On December 30, 1991, the
appellant, which operates a retail establishm ent on a property east of and adjacent to the extension project,
appealed the granting of the perm it to the Board. On February 21, 1992, after holding a hearing on the m atter, the
Board reversed and remanded the m atter to CRM for further review and to make appropriate findings consistent
with the CRM Rules and Regulations, 7 Com . Reg. 4087 et seq. (1985), am ended, 12 Com . Reg. 7186 et seq. (July
15, 1990) (hereinafter “Rules”) and PL 3-47. 10 The trial court noted that following the February 21, 1992,
decision, the record dem onstrates continued review by CRM of the perm it application between the m onths of
M arch and September of 1992. 11 On M arch 16, 1992, the Rules were am ended to delete the requirement that
certain materials be provided in the application. 12 See Em ergency and Proposed Regulations, 14 Com . Reg. 9173
et seq. (Apr. 15, 1992) (perm anently adopted in 14 Com . Reg. 10165 et seq. (Nov. 15, 1992)).
9
See also Greenhow v. Secretary of Health and Human Servs., 863 F.2d 633, 636 (9th Cir. 1988),
overruled on other grounds, 977 F.2d 1348 (9th Cir. 1992).
10
Specifically, the Board concluded that the decision was clearly erroneous, arbitrary and capricious and
not in accordance with CRM regulations. The Board found CRM’s findings to be insufficient to support the
decision, and that it was incumbent upon the applicant, or the appellee, to demonstrate by a preponderance of the
evidence that the project would not have a significant adverse impact on the coastal environment or its scenic,
historical, coastal biological and water resources. Finally, it found the application incomplete as it did not contain
coastal or stormwater plans as required under the regulations. In re Hafadai Beach Hotel Coastal Permit, Decision
No. SMS 90-X-151 (Feb. 21, 1992) (Decision).
11
Involved in this review were the CRM Administrator on an almost daily basis, Mr. Efrain Cama-
cho (the Consulting Engineer for the Appellee), personnel of the Appellee and CRM Agency
officials. Various board meetings were held, comments were solicited from Appellant and a
meeting was held on July 1, 1992, at which Appellant’s attorney appeared to discuss the project.
Thereafter, the review continued with the Director of Commerce and Labor, who initially would
not approve the permit, but did so after a final review.
In re Hafadai Beach Hotel Extension Coastal Permit Decision SMS-90-x-151 [hereinafter Hafadai], Civ. No. 93-
0056 (N.M.I. Super. Ct. Mar. 30, 1993) (Decision and Order at 2).
12
Specifically, the regulations omitted the requirement of an architectural and engineering analysis by the
permit applicant.
In April of 1992, Cam acho filed a supplem ental Environm ental Im pact Assessm ent (“EIA”) with CRM . 13
This EIA elaborated upon the factual data and addressed the concerns raised by the Board in its February 21, 1992,
decision. On July 1, 1992, a meeting between CRM officials and the appellant was held. On August 21, 1992,
public notice of the recertified com pletion of the application was published and the appellant was notified by CRM
by letter, on August 26, 1992, of such publication. On August 28, 1992, the appellant requested a public hearing
on the application.
On November 5, 1992, CRM certified that it had reviewed the perm it and found it to be in substantial
compliance with the applicable laws, rules and regulations. The appellant again appealed this decision to the
Board on the grounds that the decision was: (1) clearly erroneous in light of coastal resources management
policies; (2) in violation of applicable constitutional and statutory provisions; (3) arbitrary and capricious; and (4)
not adopted in accordance with required procedures. On December 24, 1992, the Board affirm ed the November 5,
1992, permit decision. The appellant then appealed to the Superior Court on January 13, 1993, presenting
essentially the sam e issues now before this Court. See supra notes 7-9 and accom panying text; In re Hafadai
Beach Hotel Extension Coastal Permit Decision SMS-90-x-151 [hereinafter Hafadai], Civ. No. 93-0056 (N.M .I.
Super. Ct. M ar. 30, 1993) (Decision and Order at 2-3).
The court reviewed the Board’s decision pursuant to 2 CM C § 1541(b) for substantial evidence and not
under 1 CM C § 9112(f) of the APA,14 Hafadai, Decision and Order at 6, and found that the facts regarding the
“location, soil and topography, flora and fauna, utilities and infrastructure, shoreline and lagoon, construction
im pact, erosion and storm water control, groundwater managem ent, hazardous waste, erosion control, chemical
use, disposal of waste water, historical im pact, burial grounds, traditional fishing activities and scenic impact, were
substantial.” Id. at 15-16. The court then discussed the other issues raised by the appellant. It concluded that: (1)
m onies donated were for public and not individual benefit and that there were no conflicts, id. at 16-17; (2) a
second public hearing was not required under 2 CM C § 1531(c); (3) the appellant’s involvem ent “as an ‘aggrieved
party’” was not required in the detailed perm it process, id. at 17-18; (4) there was no conflict of interest on the
part of the Attorney General’s office, id. at 18; (5) signature of the perm it by all six agency officials constituted a
unanimous decision, as required by 2 CM C §§ 1531(a) and 1538(F)(iii); (6) conditional perm its are expressly
authorized, Hafadai, Decision and Order at 19 (citing Saipan Beach Resort Hotel, Decision No. SM S-87-x-137,
CRM Appeals Board); (7) setback regulations are to be determined by CRM adm inistration and agency officials;
and (8) the appellant’s argum ents regarding the taking of property lacked m erit as a perm it decision is not
equivalent to condem nation or em inent dom ain, Hafadai, Decision and Order at 19-20. The appellant tim ely filed
a notice of appeal with the Superior Court from this decision.
DISCUSSION
13
Previous supplemental environmental impact statements had been filed in January and October of 1991;
the original was filed in October of 1990. See Appellee’s Excerpts of Record at 259-348.
14
One CMC § 9112(f)(2) of the APA states that a reviewing court may set aside an agency decision where
it is:
(A) Arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
(B) Contrary to constitutional right, power privilege or immunity;
(C) In excess of statutory jurisdiction, authority, or limitations, or short of statutory
rights;
(D) Without observance of procedure required by law;
(E) Unsupported by substantial evidence in a case subject to Sections 9108 and 9109 or
otherwise reviewed on the record of an agency hearing provided by statute; or
(F) Unwarranted by the facts to the extent that the facts are subject to trial de novo by the
reviewing court.
In re Hafadai Beach Hotel Extension, 4 N.M.I. 37 (1993)
The appellant objects to purported adverse im pacts that the appellee’s extension will have both on the
scenic view and environm ental resources of the area and its private view. Additionally, it argues that the extension
of the project should be restricted to the norm al CRM height restriction of eighty-five feet. The appellant now
raises the same issues on review before this Court as it did before the Superior Court and the Board and one
additional issue: whether or not the Superior Court erred in applying the substantial evidence standard of review to
the perm it decision. W e conclude not only that the Superior Court applied the appropriate standard of review in
this matter but that the court did not err in finding that substantial evidence supported the Board’s affirm ance of
the CRM perm it. Additionally, we conclude that the appellant’s due process rights were not abridged and that the
appellant’s other argum ents before this Court are without merit.
I. Review by Superior Court of Permit Decision One of Substantial Evidence and Reasonableness
Pursuant to 2 CM C § 1541(b)
The APA and specific statutes, such as 2 CM C § 1541, work either in conjunction or the latter to the
exclusion of the form er. See, e.g., Nevada v. Watkins, 914 F.2d 1545, 1563 (9th Cir. 1990) (review under APA if
not provided for in statutes) (citing Clementson v. Brock, 806 F.2d 1402, 1407 (9th Cir. 1986)). Judicial review
m ay be precluded by statute,15 see 1 CM C § 9112(a) 16-(b),17 and this preclusion may be of a form of review as
well, see Federal Trade Commis. v. Standard Educ. Soc’y, 302 U.S. 112, 117, 58 S. Ct. 113, 116, 82 L. Ed. 141
(1937) (courts m ay not ignore statutory m andate making com m ission findings of facts conclusive where supported
by evidence). Pursuant to 2 CM C § 1541(b): “The standard for judicial review [of final Board decisions] is
whether the decision is supported by substantial evidence on the record m ade before the Board, taken as a whole;
the facts in question are not subject to trial de novo.”
Here the legislature specifically mandated a standard which would otherwise not be applicable under the
APA.18 See and compare 1 CM C §§ 9112(f)(2)(E) (substantial evidence standard not applicable to perm it
process),19 9108 (adjudicatory procedures not applicable in perm itting process unless required by law to be
preceded by notice and opportunity to be heard),20 9111(b) (notice and hearing statutorily required only for
15
The legislature may make exceptions to the review of agency action by courts. Cf. Bowen v. Michigan
Academy of Family Physicians, 476 U.S. 667, 672-73, 106 S. Ct. 2133, 2137, 90 L. Ed. 2d 623, 630 (1986). W here
there is a clear showing that the legislature intended to preclude judicial review, such a preclusion must be observed.
See Govendo v. Micronesian Garment Mfg., Inc., 2 N.M.I. 270, 286 n.20 (1991).
16
Section 9112 applies only “to the extent that statutes enacted by the Commonwealth Legislature
explicitly preclude judicial review.” 1 CMC § 9112(a).
17
“The form of proceeding for judicial review is the special statutory review proceeding relevant to the
subject matter in the Commonwealth Trial court . . . .” 1 CMC § 9112(b).
18
This standard of review appears to apply to all decisions of CRM, whether a formal or informal record
exists. Our legislature is not alone in doing this; the U.S. Congress has “in recent times prescribed reasonableness
review of both informal adjudication and informal rulemaking by prescribing substantial evidence review.” Koch,
supra note 2, § 9.14 (citing, e.g., 49 U.S.C. § 1486(e) (informal adjudication by FAA); 42 U.S.C. § 405(g) (informal
adjudication by SSA); 15 U.S.C. § 717r (b) (Natural Gas Act); 15 U.S.C. § 57a(e)(3) (FTC rulemaking)).
19
Pursuant to 1 CMC § 9101(c) and (f), agency action includes an agency license, or the denial thereof, and
the term license includes permits.
20
Permitting “usually involve[s] both general rulemaking and adjudication of individual claims.” Koch,
supra note 2, § 2.33. However, formal adjudicative processes are rarely used. Id.
revocation, suspension, annulm ent, or withdrawal of perm it).21 The Superior Court was com pelled to apply a
standard of substantial evidence based upon both 2 CM C § 1541 and the state of the record.22
II. W hether the Superior Court Erred in Finding Substantial Evidence Supporting the Board’s
Affirmance of the November 5, 1992, Permit Decision
The final agency decision is the affirm ance of the perm it grant by the Board, see Rules, supra, § 8(G)(ix),
and not the CRM permit decision. Hence, the Superior Court was confined to determ ining not whether CRM
properly found the facts but whether there was substantial evidence before the Board supporting its affirm ance of
the perm it decision. 23 The substantial evidence standard for facts m eans that “[t]he decision must be reasonable
after consideration of the facts in the record 24 opposing the agency position as well as that supporting it . . . [and]
[t]he . . . review[ing] court [is] to uphold the agency finding even if supported by ‘som ething less than the weight
of the evidence.’” Koch, supra, § 9.16 (Supp. 1990) (footnotes omitted). 25 Questions of law under the substantial
evidence or “reasonableness” standard are exam ined to determ ine if “the agency’s conclusions are reasonable
21
The hearing procedures of CRM are informal. See generally CRM Rules and Regulations, 7 Com. Reg.
4087 et seq. (1985), amended, 12 Com. Reg. 7186 et seq. (July 15, 1990) and 14 Com. Reg. 10165 et seq. (Nov. 15,
1992) [hereinafter “Rules”] § 8(D). Generally, unless otherwise provided statutorily, the review of a formal hearing
is for substantial evidence and the review of an informal hearing is for arbitrariness. Koch, supra note 2, § 9.13
(Supp. 1990) (citing Castillo v. Army & Air Force Exch. Serv., 849 F.2d 199, 203 n.1 (5th Cir. 1988)). However,
even if the process mandated is informal, the court may apply a higher standard, such as reasonableness, where
prescribed. Florida Power & Light Co. v. Lorion, 470 U.S. 729, 744, 105 S. Ct. 1598, 1607, 84 L. Ed. 2d 643, 656
(1985) (“[t]he APA specifically contemplates judicial review on the basis of the agency record compiled in the
course of informal agency action”). “Courts have incorrectly refused to apply the mandated level of review or they
have imposed a record requirement not intended by Congress merely because they feel they face inconsistent
instructions. More flexible judicial minds can accommodate reasonableness review to informal records.” Koch,
supra, § 9.14.
22
See supra note 21.
23
The Board implements a different standard upon its review of the permit decision, and was required to
remand if that decision was: “(a) . . . clearly erroneous in light of CRM rules and regulations and the policies
established in CNMI P.L. 3-47; (b) . . . in violation of applicable Federal or CNMI constitutional or statutory
provisions; (c) . . . arbitrary or capricious; or (d) . . . not issued in accordance with required procedures.” Rules,
supra note 21, § 8(G)(viii); see also 2 CMC § 1541(b).
24
The Superior Court “should accept the agency’s factual findings if those findings are supported by
substantial evidence.” Arkansas v. Oklahoma, 503 U.S. 91, __, 112 S. Ct. 1046, 1060, 117 L. Ed. 2d 239, 259
(1992).
25
See also Greenhow, 863 F.2d at 636-37 (“Substantial evidence is ‘such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion’”) (citations omitted); David v. Camacho, 2 CR 718, 721
(D.N.M.I. App. Div. 1986).
In re Hafadai Beach Hotel Extension, 4 N.M.I. 37 (1993)
based on the inform ation package used by the agency in making the decision.” 26 Id. § 9.14.27
The record shows that the court carefully considered the entire record and enunciated the findings it
deem ed in support of the decision. The evidentiary record before the Board, and considered by the court,
included: (1) the scope of the project; (2) factual findings and conclusions of law of CRM ; (3) inform ation on the
im pact by the height exception on scenic, historical, coastal, biological, and water resources; (4) parking
requirem ents; and (5) structural orientation. Hafadai, supra, Decision and Order at 8-16. Additionally, the court
noted the specific factual findings before the Board, id., slip op. at 8-12, and concluded that they were
substantial.28 W e have review ed the record in this m atter and agree with the Superior Court that these findings are
substantial in that they adequately support the Board’s decision and that the Board’s conclusions of law were
reasonable.
III. The Due Process Claims
The appellant contends that it was denied its due process rights because the CRM Adm inistrator failed to
schedule a second public hearing after the 1992 reversal and remand by the Board to CRM and because it was
required to be involved in the permit process as the decision constituted a taking of property without due process
and just com pensation. This “taking” from the appellant goes to “the ability to use and enjoy the scenic resources
of the Saipan beach, lagoon and ocean.” Appellant’s Brief at 47. In addition to ensuring that the correct standard
of review was applied by the lower court, we may also consider constitutional claim s of an appellant. See Barry v.
Bowen, 825 F.2d 1324, 1331 (9th Cir. 1987).
For due process claim s to be considered, the proceeding must be one to which such rights attach. W e
m ust first determ ine if a due process interest is im plicated and, second, determ ine what procedures protect that
interest sufficiently to satisfy due process. Cf. Quick v. Jones, 754 F.2d 1521, 1523 (9 th Cir. 1985). 29 However, for
26
Questions of law in permit decisions are usually freely reviewable by a court and subject to the standard
of “unwarranted by the facts to the extent that the facts are subject to trial de novo” listed in the APA. 1 CMC §
9112(f)(2)(E). However, we must observe 2 CMC § 1541, which mandates a standard of substantial evidence or,
more properly termed, “reasonableness.” However, even where this test is applied, “the court will be the final
authority on legal issues.” Koch, supra note 2, § 9.18 (Supp. 1990) (citing Texas Power & Light v. FCC, 784 F.2d
1265, 1269 (5th Cir. 1986)).
27
“Even in those situations where the applicable standard of review substantially narrows the judicial
function, a court must adjust its function to that defined standard.” Koch, supra note 2, § 9.4 (Supp. 1990). With
the substantial evidence test, a demand for “a certain quantity of evidence necessarily focuses on factfinding. For
this reason, the test should be applied to factual issues and confusion develops when a court attempts to apply the
test to the whole decision or nonfactual issues within the decision.” Id. However, this standard has also been
referred to as a “reasonableness” standard, which “applies to issues other than facts that can be supported by
reasonable evidence,” even where conclusions are usually tested for arbitrariness. Id.
28
These findings fell, and were listed by the Superior Court, under six categories of potential adverse
impacts: (1) alteration of chemical or physical properties of coastal or marine waters; (2) accumulation of toxins,
carcinogens, or pathogens; (3) disruption of ecological balance; (4) addition of man-made substances, the impact of
which upon the coastal or marine environment is unknown; (5) disruption or burial of bottom communities (e.g.,
coral); and (6) interference with traditional fishing activities. Hafadai, supra note 11, Decision and Order at 8-12.
29
The interests in this matter go to the appellant’s own view, the scenic view of the area, and environmental
concerns. To determine whether these interests implicate due process rights, federal courts use the test in Mathews
v. Eldridge, 424 U.S. 319, 333-35, 96 S. Ct. 893, 901-03, 47 L. Ed. 2d 18, 31-33 (1976) (quoted in Koch, supra note
2, § 7.24 (Supp. 1990)). Under this test, the private interest is weighed with the probable value of additional
procedure and the government’s interest, see id., with special weight given to the private interest. Haygood v.
a claim on constitutional due process grounds to be pursued it must at the very least be “colorable” to confer
subject m atter jurisdiction in an appellate court. See Callis v. Department of Health & Human Servs., 877 F.2d
890, 891 (11th Cir. 1989) (not addressing claim where unsupported by evidence). The appellant bears the burden
of proof as the proponent of an order of this Court setting the trial court’s affirm ance of the agency decision aside.
See Chemical Waste Mgmt., Inc. v. Environmental Protection Agency, 649 F. Supp. 347, 354 (D.C. Cir. 1986)
(where standard is deferential, burden of overcom ing presum ption that agency action is valid is on party
challenging action); cf. San Nicolas, 1 N.M .I. at 335 (citing 1 CM C § 9109(i)). The appellant has failed to show
that its constitutional claim has m erit.
First, the appellant’s interest in preserving its view is sim ply not one protected under the statute or
regulations of CRM . Second, while the public has an interest in the preservation of both the scenic view and the
environm ent, that interest is sufficiently safeguarded procedurally by applicable CRM statutes and regulations.
Additional required procedures would unduly burden CRM and adversely affect governm ental interests in
efficiency. Finally, a “fundamental requirement of due process is the opportunity to be heard ‘at a meaningful
tim e and in a meaningful manner.’” Mathews v. Eldridge, 424 U.S. 319, 333, 96 S. Ct. 893, 902, 47 L. Ed. 2d 18,
32 (1976) (citation om itted). M eetings were held, both before and after the rem and of the Board, between CRM
and the appellant and a public hearing was held on the m atter within the initial prescribed review period. 30 That
m eetings were held and the appellant was afforded the opportunity to participate in an ante-remand public hearing
and a post-rem and meeting does not mean that any due process right it may have had was not observed.31 If
anything, CRM appears to have bent over backward to accom m odate the appellant.32
IV. The Appellant’s Other Claims
The appellant’s three other claim s are that: (1) a conflict of interest arose requiring disqualification of an
agency; (2) CRM failed to com ply with its rules and regulations; and (3) the decision was arbitrary and capricious.
The third claim involves a standard of review which is encom passed by that of substantial evidence. 33 In other
words, as we found substantial evidence supporting the affirm ance of the Board decision, it was not arbitrary and
capricious. Additionally, som e of the appellant’s contentions that CRM failed to com ply with its rules and
regulations, see supra note 9, are either not properly before this Court, as they either go to the factual findings of
the agency officials (and not whether the Board’s decision was supported by substantial evidence) or are addressed
in the previous substantial evidence and due process analyses. Finally, whether or not a conflict of interest arose
requiring the disqualification of an agency or agencies from the Board is a m ixed question posed before the Board
Younger, 769 F.2d 1350, 1355-56 (9th Cir. 1985), cert. denied, 478 U.S. 1020, 106 S. Ct. 3333, 92 L. Ed. 2d 739
(1986). Only then do we consider whether or not there was a violation of due process.
30
There is no specific statutory requirement for a hearing and Rules, supra note 21, § 8(D) provides that
either where requested or required by a CRM agency official, a public hearing must be held within the sixty day
review period. That review period begins on the day the application is certified complete by CRM. Id., § 8(D)(ii).
31
See Fleetwood Enters., Inc. v. Department of Hous. and Urban Dev., 818 F.2d 1188, 1195 (5th Cir.
1987) (where informal procedure statutorily mandated regulated agency may hold “either a formal adversary
administrative hearing or an informal nonadversary proceeding”). Unless an evidentiary hearing is required by
statute, an agency has considerable discretion in deciding how to proceed. Washington v. Office of Comptroller of
Currency, 856 F.2d 1507, 1512 (11th Cir. 1988).
32
Even if we were to conclude that the recertification of the permit triggered a new fifteen day notice
period, see Rules, supra note 21, § 8(B), CRM’S failure to hold a post-remand hearing would amount to, at best,
harmless error in this case, and there was no error by the Board in determining that the CRM procedures
implemented comported with the law.
33
“[A]n agency ruling is ‘arbitrary and capricious if the agency has . . . entirely failed to consider an
important aspect of the problem.’” Arkansas, 503 U.S. at ___, 112 S. Ct. at 1060, 117 L. Ed. 2d at 259 (1992)
(citation omitted).
In re Hafadai Beach Hotel Extension, 4 N.M.I. 37 (1993)
and reviewed by the Superior Court under the substantial evidence and reasonableness tests. W e find no error on
the part of the court in this matter. There are no provisions in either the CRM regulations or statutes requiring the
disqualification of an entire agency, an agency required to participate in the permit proceedings.
CONCLUSION
For the foregoing reasons, it is hereby ORDERED that the Superior Court’s affirmance of the Board’s
affirm ance of the CRM perm it decision is AFFIRM ED.