Fischer v. Iowa Sate Commerce Commission

368 N.W.2d 88, 1985 Iowa Sup. LEXIS 1026
CourtSupreme Court of Iowa
DecidedMay 22, 1985
Docket84-279
StatusPublished
Cited by11 cases

This text of 368 N.W.2d 88 (Fischer v. Iowa Sate Commerce Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fischer v. Iowa Sate Commerce Commission, 368 N.W.2d 88, 1985 Iowa Sup. LEXIS 1026 (iowa 1985).

Opinion

CARTER, Justice.

Petitioner William H. Fischer has appealed from the denial of his petition for judicial review of the action of the Iowa State Commerce Commission (the commission) in granting a franchise to appellee Dairyland Power Cooperative (DPC) for the construction of an electrical transmission line in Clayton County, Iowa.

DPC is a generation and transmission co-operative which serves as a wholesale supplier of electrical energy to some twenty-nine distribution co-operatives in Wisconsin, Minnesota, Illinois and Iowa. One of these distribution co-operatives is the Alla *90 makee-Clayton Electric Cooperative, which in turn serves customers in Northeast Iowa, including the area in question.

On July 9, 1981, DPC filed a petition for franchise pursuant to Iowa Code section 478.2, seeking permission to construct a 72,000 volt transmission line, 4.2 miles in length, between existing lines and a proposed substation in Clayton County. Pursuant to Iowa Code section 478.6, DPC also sought to obtain the power of eminent domain in order to obtain easements across the land of those property owners along the route of the proposed transmission line who did not voluntarily grant it such easements. Petitioner is one of the affected property owners.

More than two years before filing its petition, DPC gave notice of and held an informational public hearing in Clayton County, as required by Iowa Code section 478.2. As an affected property owner, petitioner was given notice of the filing of the petition on September 23, 1981 and of his right to make objections to the petition. He was further notified at this time that a hearing would be held on the petition commencing October 27, 1981.

Petitioner did file objections to the granting of the franchise in accordance with section 478.5. A hearing before a hearing officer of the commission was held on October 27, 1981. No discovery was requested by petitioner prior to the hearing date. At the hearing, petitioner orally moved to dismiss the petition for failure to provide the information and substantiation required by Iowa Code section 478.3. Ruling on this motion was deferred by the hearing officer, pending submission of evidence, but the motion was ultimately denied.

DPC presented testimony and exhibits at the October 27 hearing concerning the public need for and the planning background of the proposed transmission line. Petitioner cross-examined DPC’s witnesses and testified in his own behalf. He offered economic data which he contended demonstrated that population loss and changes in the dairy industry would produce a decreased demand for power rather than an increased demand as contended by DPC. At the conclusion of the October 27 hearing, the hearing officer, at the request of the commission staff and without objection by petitioner, provided that additional information could be submitted by DPC at a later time in the form of exhibits. Such additional exhibits were filed with the commission by DPC between November 10 and December 7, 1981. Upon their filing, petitioner objected on the ground that the full text of these documents had been omitted. He also expressed the desire to cross-examine DPC employees and other knowledgeable persons concerning the contents of these documents. In apparent response to the latter request and also upon a request of the commission staff to reopen the hearing, the hearing officer ordered on February 26, 1982 that the hearing be reopened.

The hearing officer’s order provided that the purpose of the reopened hearing was to allow petitioner to cross-examine witnesses with respect to those exhibits submitted subsequent to the October hearing and to present any rebuttal evidence he might have to such exhibits. The order fixed the time of the reopened hearing for April 20, 1982 and, in addition, provided:

On or before March 22, 1982, all parties shall file and serve prepared direct testimony, which testimony shall set out all additional facts which the parties consider necessary to a final decision in this matter. The parties shall be limited to cross-examination of such prepared direct testimony but may present additional testimony rebutting the prepared testimony of the opposing party.

DPC filed the proposed direct testimony of its witnesses prior to the reopened hearing, and petitioner filed his own proposed direct testimony. The testimony of petitioner’s expert witnesses was treated as rebuttal evidence under the foregoing order, and, therefore, the prepared testimony of those witnesses was not filed.

On March 9, 1982, petitioner filed and served on DPC discovery interrogatories. These interrogatories were answered by DPC on April 5, 1982. A subsequent mo *91 tion by petitioner to compel DPC to file more complete answers to these interrogatories was denied by the hearing officer on the morning of the reopened hearing. On March 25, 1982, the hearing officer permitted DPC to amend its petition so as to allege those matters specified in subsection 2 of Iowa Code section 478.3.

Following consideration of the dispute concerning the adequacy of DPC’s responses to the interrogatories, the hearing was reopened and evidence presented by the parties. The hearing officer denied petitioner’s renewed challenge to the sufficiency of the petition, both as initially filed and as amended. The hearing officer further found that the proposed transmission line was necessary to serve a public use and reasonably related to an overall plan of transmitting electricity in the public interest.

Petitioner appealed the hearing officer’s decision to the commission which, in a separate opinion, affirmed that ruling. In dealing with the hearing officer’s rulings on Fischer’s motions to dismiss, the commission noted that its previous practice in considering franchise petitions was to order amendment of the petition upon proper challenge thereto rather than dismissing the proceedings.

Following the final agency action, petitioner timely sought judicial review of the commission’s order pursuant to section 17A.19. DPC intervened in the proceeding. The district court upheld the commission’s ruling with respect to the claimed inadequacy of DPC’s petition. Petitioner also challenged on judicial review the matter of whether there was substantial evidence in the record, considered as a whole to uphold the granting of the franchise. The district court determined that there was. The district court affirmed the commission’s ruling in all respects, and this appeal ensued. Other factual matters not previously detailed will be considered in connection with our discussion of the legal issues which are presented on the appeal.

I. Scope of Review.

Our review, like that of the district court, is to correct errors of law made by the agency. In so doing, we apply the standards of section 17A.19(8) to the agency action. Northwestern Bell Telephone Co. v. Iowa State Commerce Commission, 359 N.W.2d 491, 495 (Iowa 1984); Lefebure Corp. v. Iowa Department of Job Service, 341 N.W.2d 768, 770 (Iowa 1983).

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Bluebook (online)
368 N.W.2d 88, 1985 Iowa Sup. LEXIS 1026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fischer-v-iowa-sate-commerce-commission-iowa-1985.