William and Lucy Hitch “the Hitches” filed suit against the Department of Natural Resources “DNR”, the Coastal Resources Division of the Department of Natural Resources, the State of Georgia collectively, “the State” and Jane Vasarhelyi, challenging the State’s issuance of a license to Vasarhelyi for the building of a dock. The Hitches alleged multiple causes of action. After the trial court dismissed Vasarhelyi as a party, it entered several orders: 1 dismissing the complaint against the State for lack of standing and failure to state a claim; 2 requiring the Hitches to pay attorney fees to Vasarhelyi; and 3 closing the case. The Hitches appeal these three orders. Although we affirm the order dismissing the case, we vacate and remand the order requiring the payment of assessed attorney fees. According to the Hitches, in 2003, Vasarhelyi applied for a permit to build a dock extending from her property over State-owned tidewater beds and marsh lands. Vasarhelyi apparently was required to seek authorization from the Army Corps of Engineers. In November 2003, the Corps issued a “Joint Public Notice” regarding Vasarhelyi’s application, which invited interested persons to request a public hearing on the proposed project. The Hitches, who own property that adjoins Vasarhelyi’s land, wrote to the Corps, expressing their objections to the construction of the dock and requesting a hearing. The Corps subsequently learned that the Georgia Department of Natural Resources had not approved the dock, and it denied Vasarhelyi’s application without holding a hearing.
Vasarhelyi ultimately obtained a revocable license from the State of Georgia to construct the dock. Although several designs were proposed, the Coast Guard objected to a straight dock, and Vasarhelyi received permission to build a “dog leg” shaped dock. In October 2004, the Hitches filed a “Petition for Hearing,” seeking an administrative hearing with the Office of State Administrative Hearings “OSAH” in which they could challenge the dock permit. The State, however, responded that it would not forward the petition to OSAH since, with respect to the management of State tidelands, the Department of Natural Resources acts pursuant to a delegation of authority from the Governor, who is exempt from the Georgia Administrative Procedures Act.
