Helmers v. Altruck Freight Systems

436 N.W.2d 39, 1989 Iowa Sup. LEXIS 40, 1989 WL 13889
CourtSupreme Court of Iowa
DecidedFebruary 22, 1989
DocketNo. 87-1708
StatusPublished

This text of 436 N.W.2d 39 (Helmers v. Altruck Freight Systems) 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
Helmers v. Altruck Freight Systems, 436 N.W.2d 39, 1989 Iowa Sup. LEXIS 40, 1989 WL 13889 (iowa 1989).

Opinion

CARTER, Justice.

This appeal arises with respect to a workers’ compensation review-reopening proceeding brought before the industrial commissioner. The agency entered a default against the employer and insurance carrier for their failure to answer the petition within the time required by agency rules. A final order fixing benefits was later entered. The agency refused to consider a motion to set aside the default filed fifty days after the final order on the ground that it was untimely. The employer and insurance carrier then filed a petition for judicial review seeking to challenge such refusal. That petition was dismissed by the district court on jurisdictional grounds. Because we disagree with the decision of the district court and the agency, we reverse their orders and remand the case to the agency for consideration of appellants’ motion to set aside the default.

As a result of an injury sustained on March 17, 1981, Allen Douglas Helmers (the claimant) obtained weekly benefits of $203.16. Pursuant to a memorandum of agreement, the last weekly benefit payment was made to claimant on December 25, 1981. On August 9, 1985, the claimant filed a review-reopening petition seeking additional disability benefits. The review-reopening petition had been served by mail on the employer on July 2,1985, and on the insurance carrier on July 9, 1985. Proofs [41]*41of these services were filed with the agency.

On October 4, 1985, upon the claimant’s request, a deputy industrial commissioner entered an order of default against the employer and insurance carrier for failure to serve an answer within twenty days as required by 500 Iowa Administrative Code 4.9(3) (now found in 343 Iowa Admin.Code 4.9(3)). The agency’s order of default declared that an agency rule “makes Iowa Rule of Civil Procedure 230 applicable to default motions before this agency.” On March 6, 1986, an unreported hearing was held before a deputy industrial commissioner at which only the claimant appeared. On August 21, 1986, the deputy commissioner filed an order finding an increased disability and establishing additional weekly workers’ compensation benefits due to the claimant from his employer.

On October 10, 1986, the employer and insurance carrier filed a motion to set aside the default and order of benefits relying in part on Iowa Rule of Civil Procedure 236, which allows such a motion to be filed within sixty days of a final judgment or order¡ That motion claimed that the review-reopening petition had been mailed to the wrong address. The deputy industrial commissioner refused to consider whether the grounds of the motion were valid because of his belief that Iowa Rule of Civil Procedure 236, relating to the setting aside of defaults and judgments by default, has no application to the present controversy. On appeal to the industrial commissioner, that order was affirmed.

On a petition for judicial review, the district court determined that, because the industrial commissioner was without jurisdiction to hear the application to set aside default, both the agency and the court lacked jurisdiction of the issue. Based on this premise, the district court dismissed the petition for judicial review for want of subject matter jurisdiction. The employer and insurance carrier have appealed from that order.

I. Jurisdiction of the District Court.

Initially, we consider the district court’s conclusion that it lacked subject matter jurisdiction because, in its view, the agency lacked jurisdiction to consider the application to set aside the default. We believe the agency’s refusal to set aside the default was itself a final agency order. Under Iowa Code section 17A.19, the district court always has jurisdiction to review a final order of the agency, including agency orders which dispose of a case for lack of jurisdiction. See Continental Tel. Co. v. Colton, 348 N.W.2d 623, 625 (Iowa 1984). Consequently, the district court should not have dismissed the case on jurisdictional grounds and should have either affirmed or reversed the order being reviewed.

Ordinarily, the failure of the district court to proceed in this manner would require us to remand the case to that court for further proceedings. On the present record, however, this approach seems impractical. The district court fully indicated in its order on judicial review that it agreed with the agency’s determination as to the applicability of Iowa Rule of Civil Procedure 236. Moreover, the parties have fully briefed the timeliness and jurisdictional issues concerning the application to set aside the default. Consequently, in the interest of sound judicial administration, those issues may be determined on the present appeal. See Hart v. Iowa Dep’t of Job Serv., 394 N.W.2d 385, 388 (Iowa 1986); Chauffeurs, Teamsters and Helpers, Local Union No. 238 v. Iowa Civil Rights Comm’n, 394 N.W.2d 375, 378 (Iowa 1986).

II. Whether Iowa Rule of Civil Procedure 236 Applies to the Present Controversy So As To Render Appellants’ Application Timely.

The appellants contend that Iowa Rule of Civil Procedure 236 is made applicable to proceedings before the agency by 500 Iowa Administrative Code 4.35 (now found at 343 Iowa Admin.Code 4.35). That rule provides:

The rules of civil procedure shall govern the contested case proceedings before the industrial commissioner unless provisions are in conflict with these rules and Iowa Code chapters 85, 85A, 85B, 86, 87 [42]*42and 17A, or obviously inapplicable to the industrial commissioner. In those circumstances, these rules or the appropriate Iowa Code section shall govern. Where appropriate, reference to the word “court” shall be deemed reference to the “industrial commissioner.”

Iowa Rule of Civil Procedure 236 provides:

On motion and for good cause shown, and upon such terms as the court prescribes, but not ex parte, the court may set aside a default or the judgment thereon, for mistake, inadvertence, surprise, excusable neglect or unavoidable casualty. Such motion must be filed promptly after the discovery of the grounds thereof, but not more than sixty days after entry of the judgment. Its filing shall not affect the finality of the judgment or impair its operation.

The deputy industrial commissioner, industrial commissioner, and the district court refused to apply the time limitations of rule 236 to the present controversy for two reasons. These were: (1) that, under agency rules, the deputy’s decision became final if not challenged within twenty days by a motion for rehearing or an appeal to the industrial commissioner; and (2) the present controversy ceased to be a contested case after entry of default. The appellants urge that neither of these grounds is tenable. We agree.

Although the agency rule adopting the Iowa Rules of Civil Procedure indicates that no rule of civil procedure shall apply which is in conflict with the agency’s own rules, we find no clear conflict between any agency rule and Iowa Rule of Civil Procedure 236.

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Related

Miller v. Farmers Cooperative Company, Lost Nation
176 N.W.2d 832 (Supreme Court of Iowa, 1970)
Dimmitt v. Campbell
151 N.W.2d 562 (Supreme Court of Iowa, 1967)
Continental Telephone Co. v. Colton
348 N.W.2d 623 (Supreme Court of Iowa, 1984)
Hart v. Iowa Department of Job Service
394 N.W.2d 385 (Supreme Court of Iowa, 1986)

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Bluebook (online)
436 N.W.2d 39, 1989 Iowa Sup. LEXIS 40, 1989 WL 13889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helmers-v-altruck-freight-systems-iowa-1989.