Earth Construction, Inc. v. State of Vermont Agency of Transportation

2005 VT 82, 882 A.2d 1172, 178 Vt. 620, 2005 Vt. LEXIS 176
Supreme Court of Vermont·Decided July 26, 2005·No. No. 05-011·Published·Cited by 11 cases

Opinion

¶ 1. Plaintiff Earth Construction, Inc. appeals, following our decision and remand to the superior court to consider whether plaintiff had any claims remaining that lay outside the boundaries of the Transportation Board’s jurisdiction. We previously ruled that plaintiff was precluded from relitigating any claims that were within the Board’s jurisdiction because plaintiff failed to properly appeal from the Board’s final order disposing of those claims. After reviewing the statute that delineates the scope of the Board’s jurisdiction, and carefully considering plaintiff’s complaint, the superior court held that, even under the liberal notice pleading standards of Vermont Rule of Civil Procedure 8, plaintiff had failed to set forth facts and law that would support any legal claims outside the Transportation Board’s jurisdiction. Therefore, it dismissed the complaint on a motion for judgment on the pleadings pursuant to Rule 12(c). We affirm.

¶ 2. Plaintiff began adversarial administrative, and then legal, proceedings against the Agency of Transportation and various Agency employees after the termination of four road construction contracts plaintiff had with the Agency. Plaintiff’s administrative action culminated in an August 28, 1997 letter from the Transportation Board, informing plaintiff that, among other reasons, it would not consider his claims alleging breach of contract because the Board considered such claims beyond its jurisdiction. Accordingly, the Board refused to hold a hearing or take further action on plaintiff’s claims. Sixteen months later, plaintiff filed a complaint seeking damages from the Agency for a variety of ill-defined wrongs stemming from the termination of plaintiff’s contracts. The complaint also asserted that the Board erred by refusing to hear plaintiff’s grievances. The superior court dismissed the complaint, ruling that it was essentially an appeal from the Board’s decision, and as such was not filed within the jurisdictional thirty-day time limit required by Vermont Rules of Civil Procedure 74 and 75.

¶3. In Earth Construction, Inc. v. State, No. 2001-237 (Vt. Mar. 13, 2002), a three-justice panel of this Court heard plaintiff’s appeal from the superior court’s dismissal of the complaint. We held, among other things, that plaintiff is precluded from challenging the Board’s adverse determinations of his claims because plaintiff failed to timely appeal the Board’s decision pursuant to Rule 74.* Id. at 3. Thus, even though the Board declined jurisdiction over some of plaintiff’s claims, we held that they would be precluded even if the Board erred in assessing the limits of its jurisdiction. In so doing, we recognized the possibility that plaintiff could still assert other claims as part of an original complaint in superior court, assuming that they are determined to be outside the scope of the Board’s authority and within the appliea-[621] ble statute of limitations.' We remanded the case with instructions that the superior court determine which, if any, of the claims plaintiff asserted were outside the scope of the Board’s jurisdiction. As to those claims, the court was then required to test their viability under the generally applicable pleading standards contained in the Vermont Rules of Civil Procedure.

¶ 4. On remand, the superior court correctly observed that plaintiff’s central “claims are fundamentally and essentially derived from four highway construction contracts that it believes were unlawfully breached by the Agency.” The court then concluded that claims for breach of contract were within the Board’s appellate adjudicative authority, and were, therefore, precluded for the reasons set forth in our prior three-justice panel opinion. We affirm the court’s conclusion on this issue.

¶5. The Transportation Board is a creature of statute, and as such its jurisdiction is limited to the powers and duties conferred by the Legislature in 19 V.S.A. § 5, the Board’s enabling statute. See In re Danforth, 174 Vt. 231, 236, 812 A.2d 845, 849 (2002) (recognizing that jurisdiction of public administrative body is “exclusively conferred” by statute). When interpreting statutes, the Court’s task is to effectuate the express intent of the Legislature as evidenced by the “plain, ordinary meaning of the language” used. Barnet Hydro Co. v. Pub. Serv. Bd., 174 Vt. 464, 466, 807 A.2d 347, 349 (2002) (mem.) (quotations omitted). We will not look beyond the plain meaning of the statutory language when that language is clear and unambiguous. Town of Bridgewater v. Dep’t of Taxes, 173 Vt. 509, 510, 787 A.2d 1234, 1236 (2001) (mem.). Moreover, when a statute creates administrative remedies, a party must exhaust all of these before turning to the courts for relief. Id.

¶ 6. The statute that created the Transportation Board states that “[t]he regulatory and quasi-judicial functions relating to transportation shall be vested in the transportation board.” 19 V.S.A. § 5(a) (emphasis added). This case. focuses on the breadth of the statutory delegation to provide appellate review regarding “legal disputes in the execution of contracts.” In its August 28,1997 letter to plaintiff denying appellate review of certain claims, the Board took a narrow view of this authority, reasoning that “[w]hile the Board has addressed appeals concerning disagreements and interpretations of contract documents, issues such as breach of contract, [and] wrongful termination ... are areas of legal • complexity more appropriately handled by the judicial system.” After reviewing the statute, the superior court concluded, as do we, that the Board’s appellate jurisdiction unquestionably extends to breach of contract cases involving the Agency’s transportation decisions.

¶ 7. Although the Board felt that a potentially complex issue such as breach of contract is more appropriately handled by the-judiciary, we note that the Legislature demonstrated significant confidence in the Board’s ability to function like a court when dealing with a variety of other complicated matters. Among the wide-ranging judicial functions delegated to the Board are the powers to make findings of fact, id. § 5(c); to hear and determine certain small claims, id. § 5(d)(2); to provide appellate review of Agency decisions in several types of cases, id. § 5(d)(3)-(6); and to render judgments, make orders and decrees, and issue subpoenas for the production of witnesses or evidence, in all cases over which the statute provides jurisdiction, id. § 5(f).

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Earth Construction, Inc. v. State of Vermont Agency of Transportation, 2005 VT 82, 882 A.2d 1172, 178 Vt. 620, 2005 Vt. LEXIS 176 (Vt. 2005).

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