Golden Day Schools, Inc. v. State Department of Education

In this case we determine that a child care contractor with the state, debarred by the state administering agency from applying for further contracts for three years, has a due process liberty interest entitling it to a hearing on justification for the debarment. The hearing must be before an impartial arbiter or tribunal. The contractor in this case had a hearing, but not before an impartial tribunal. Since the trial court denied its petition for relief, we shall reverse with directions that an appropriate order be entered directing that the state agency provide the contractor with the hearing to which it is constitutionally entitled.

Factual and Procedural Summary

Appellant Golden Day Schools, Inc., is a California nonprofit corporation that, for over 35 years, has operated child care programs in the City of Los Angeles. For a number of years it has done so under contracts awarded annually by respondent State of California. The administering agency for the state is the State Department of Education, and, for convenience, we shall refer to respondent as the Department. Appellant’s funding level from the Department, at the time its contract was not renewed, was…