No, it is not true that you can or have to sue the State to get your license back. Your facts are not clear as to exactly everything that occurred in your case, including whether there was actually a hearing (and you simply failed to show up), etc.. I strongly advise that you hire a criminal defense attorney to represent you in this matter. Assuming your facts are as you state they are, whether you had a hearing (and you failed to show, or you lost the hearing) or you never had a hearing because you didn't properly request one, etc., you possibly shouldn't have to serve an additional 1-yr suspension. Again, this is why you really need to be represented to try to sort this out, and if your criminal case is still pending, to have someone to help work out a reasonable resolution, if possible. Good luck.
It is very important whenever you are arrested to hire an attorney to represent you as soon as possible. What happens in the court may have little bearing on how the Department of Driver Services assesses a license suspension, and you need an advocate for both purposes. I would suggest that you hire an attorney and provide that attorney with your driving history and authority to speak to DDS about your license status.
I am an attorney. I am not your attorney unless you have signed a written contract with me and given me money. This is information for educational purposes only, and no attorney-client privilege exists.
I have seen situations like yours where people assume that the court dictates what DMVS does, and end up with double punishment. In your case, you assumed you were suspended when you were not. If they set a hearing and you did not attend, the normal outcome would be the suspension. What you need to do is get a copy of all of the documents, including the case file on the administrative license suspension, and sit down with an attorney. There may be many options and the need to get a little creative, but you will have to lay out all of the facts and documentation for someone to give you your options.
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