Hope Rehabilitation Services v. Department of Rehabilitation

Hope Rehabilitation Services (Hope) appeals from a judgment denying its petition for a writ of administrative mandate. The petition sought to overturn audit findings by the Department of Rehabilitation (Department) that required Hope to reimburse the Department $152,039.51. Hope contends the superior court should have applied the independent judgment test rather than the substantial evidence test in reviewing the Department’s decision and that, even assuming the substantial evidence test applies, the Department’s findings are not supported by the evidence. Alternatively, Hope contends that the audit findings should be disallowed by the doctrine of administrative laches and that, in any event, the audit findings result in an inequitable rate of payment to Hope for the habilitation services it provides. We find no merit in any of Hope’s contentions and affirm the judgment.

Facts and Procedural Background

Hope is a private, nonprofit public benefit corporation that provides habilitation services to developmentally disabled adults and, through work- *942 activity programs (e.g., sheltered workshops) at six facilities, prepares and maintains its clients at their highest…