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IN THE MATTER OF: JENNY and THOMAS WRIGHT, husband and wife, Vehicle: 2005 Cadillac Escalade ESV, VIN: 3GYFK66N85G210370, Petitioners-Respondents, vs. DIRECTOR OF REVENUE, STATE OF MISSOURI, Respondent-Appellant.

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No. SD32203 Filed: May 15, 2013

APPEAL FROM THE CIRCUIT COURT OF BUTLER COUNTY Honorable John H. Bloodworth, Associate Circuit Judge REVERSED AND REMANDED The Wrights applied to the Missouri Department of Revenue ("the Department") in early April 2012, for a Missouri salvage title for a 2005 Cadillac Escalade. The Escalade had a Kentucky "rebuilt vehicle" title that was issued in February 2012. The Wrights withdrew their application when the Department sent a letter stating their application could not be processed because the vehicle was issued a junking certificate on June 23, 2011, by the State of Arkansas and, as such, the only options were to have a

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junking certificate issued in Missouri or to have the Wrights submitted documentation returned to them. The Wrights filed suit in the circuit court requesting the court order "that the Missouri Department of Revenue issue a prior salvage title" for the Escalade. The circuit court denied the Director of Revenue's motion to dismiss the suit, and entered judgment for the Wrights ordering "that the Director of Revenue issue a salvage title to" the Wrights for the Escalade. We reverse and remand. At issue is the authority of the circuit court to order the relief requested by the Wrights. On April 12, 2012, the Department sent the Wrights a written communication on Form 4055. The letter advised the Wrights that their application could not be processed because: [T]he above referenced vehicle was issued a junking certificate on June 23, 2011, by the State of Arkansas. When a junking certificate has issued, the vehicle may be used for parts only and cannot be repaired or restored for use on Missouri highways. Please complete and return this letter informing the Department to issue a junking certificate to you or return the submitted documentation. The communication gave the Wrights the option of requesting a Missouri "junking certificate," or withdrawing their application but did not contain a notice of the Wrights' right to appeal the Department's finding or decision to the Administrative Hearing Commission as required by section 621.050.1.1 The Wrights subsequently withdrew their application for a Missouri salvage title, and, on May 30, 2012, filed suit in circuit court requesting the court order "that the Missouri Department of Revenue issue a prior salvage title" for the Escalade. The

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All references to statutes are to RSMo 2000, unless specified otherwise.

In a letter dated August 2, 2012, after the suit was filed in the circuit court, the Department again informed the Wrights that it could "only issue a junking certificate" for the Escalade, and included a notice of the Wrights' right to appeal to the Administrative Hearing Commission as required by section 621.050.1.

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Director answered, and also requested that the circuit court dismiss the suit because the Wrights failed to exhaust their administrative remedy before the Administrative Hearing Commission. The circuit court twice denied the Director's motion to dismiss and, following a hearing, entered judgment for the Wrights ordering "that the Director of Revenue issue a salvage title to" the Wrights for the Escalade. In the Director's sole point relied on, the Director claims that the circuit court lacked authority to enter judgment ordering the Director to issue a salvage title because the Administrative Hearing Commission has exclusive authority to hear an appeal from the Director's decision denying the Wrights' application for a salvage title. We agree, although we do not find that the action in the circuit court was "an appeal." The legislature has declared the procedure to initially apply for a title. Section 301.573 provides the Department "may review all title designations." Application for a certificate of ownership "shall be made . . . upon a blank form furnished by the director of revenue[.]" Section 301.190.1, RSMo Cum.Supp. 2009. If satisfied with the application, "the director shall thereupon issue an appropriate certificate over his signature and sealed with the seal of his office[.]" Section 301.190.2. The Director "shall" indicate or designate salvage on the certificate of ownership in the circumstances set forth in section 301.190.11 and 12. The director "shall" issue "salvage" titles and "junking certificate[s]" in the circumstances indicated in section 301.227, RSMo Cum.Supp. 2007. In general, a certificate of title cannot be issued for a vehicle once a junking certificate is issued for the vehicle. Section 301.227.3. Further, as more fully explained below, section 621.050.1, and section 621.189, RSMo Cum.Supp. 2001, provide a procedure for appealing "any finding, order, decision,

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assessment or additional assessment" of the Director

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