Heywood v. Cruzan Motors, Inc.

21 V.I. 495, 1985 U.S. Dist. LEXIS 12139
CourtDistrict Court, Virgin Islands
DecidedNovember 27, 1985
DocketCivil No. 1984/224
StatusPublished
Cited by1 cases

This text of 21 V.I. 495 (Heywood v. Cruzan Motors, Inc.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heywood v. Cruzan Motors, Inc., 21 V.I. 495, 1985 U.S. Dist. LEXIS 12139 (vid 1985).

Opinion

O’BRIEN, Judge

MEMORANDUM OPINION

The issue presented in this appeal from the Territorial Court is whether the court erred in dismissing the plaintiff’s action. For the reasons stated below, we affirm the dismissal.

[497]*497I. FACTS

Plaintiff Maria Heywood (“Heywood”) purchased a 1980 Pontiac Phoenix from the defendant, Cruzan Motors, Inc. (“Cruzan”), on June 29, 1979. Shortly thereafter, Heywood discovered a multitude of defects1 and returned the automobile to Cruzan for repairs. Ultimately, she refused to take the car back from Cruzan and demanded that the dealer replace the vehicle.

On January 22, 1980, Heywood filed a complaint with the Virgin Islands Consumer Services Administration (“CSA”). After a hearing, Agency Director Helen I. Joseph, concluded that Heywood was not entitled to a new car because Cruzan had repaired the defects but awarded Heywood $300 as compensation for her inconvenience.

Unsatisfied with this result, Heywood petitioned the CSA for reconsideration on January 22, 1982. She also filed a complaint in the Territorial Court that April, alleging breach of warranty and intentional infliction of emotional distress.2

Upon Cruzan’s motion, the Territorial Court dismissed the complaint for lack of jurisdiction on two grounds.3 First, it held that no action had been taken on the petition for reconsideration and, therefore, Heywood had failed to exhaust her administrative remedies before seeking judicial review of the CSA’s determination. The court found alternatively that even if judicial review were proper, Heywood misplaced jurisdiction because the United States District Court has exclusive appellate jurisdiction over consumer matters.

[498]*498The court rejected Heywood’s argument that she was free to bring a territorial action because the CSA hearing was “investigatory” and no ruling had issued.4 This appeal followed.

II. DISCUSSION

It is “a long settled rule of judicial administration that no one is entitled to judicial relief for a supposed or threatened injury until the prescribed administrative remedy has been exhausted.” Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 50-51 (1938); McKart v. United States, 395 U.S. 185, 193 (1968). The exhaustion doctrine preserves the autonomy and integrity of administrative agencies. At the heart of the doctrine is the agencies’ role as a trial court in developing the factual background which is used on appeal. Underscoring this are the agencies’ expertise and the discretion they are accorded by statute. McKart, supra at 193; Republic Industries, Inc. v. Central Pennsylvania Teamsters Pension Fund, 693 F.2d 290, 293 (3d Cir. 1982); Bethlehem Steel Corp. v. Environmental Protection Agency, 669 F.2d 903, 907 (3d Cir. 1982). Judicial economy is also fostered by exhaustion because an administrative decision may dispose of a matter entirely or at least obviate an appellate court’s need to make factual findings. Aircraft & Diesel Corp. v. Hirsch, 331 U.S. 752, 767 (1947); McKart, supra at 193-94. See also Republic Industries, supra at 293; American Federation of Government Employees (AFL-CIO) Local 1904, AFGE (AFL-CIO), Local 1498, AFGE (AFL-CIO) v. Resor, 442 F.2d 993, 994 (6th Cir. 1971). In short, exhaustion requires the courts to avoid premature interruption of the administrative process, allowing agencies to not only develop a record but also to correct their errors. E.g., McKart, supra at 195.5

The Territorial Court found that Heywood commenced an action [499]*499before the CSA pursuant to the Virgin Islands Consumer Code, 12A V.I.C. § 1 et seq., resulting in a damage award. The court reasoned that Heywood’s sole recourse as a disgruntled plaintiff was to follow the appeal procedure detailed in 12A V.I.C. § 7. In pertinent part, the statute provides:

§ 7. Appeals
(a) Any person directly or adversely affected by acts, orders or resolutions issued by the Director in accordance with the powers granted by this chapter, may within the ten (10) days following his notification, file a written petition for reconsideration, specifying his objections.
(b) Any person aggrieved by the decision of the Director to a request for reconsideration may, within ten (10) days following the date of the notice of such decision file an appeal for review to the District Court of the Virgin Islands.

Subsection (a) mandates that reconsideration by the CSA is the first rung of appeal in consumer actions. Caselaw has affirmed the plain language of the statute. In Cyntje v. Wasco, 1979 St. T. Supp. 457 (D.V.I. October 24, 1979), an appeal from a CSA ruling was dismissed for failure to comply with 12A V.I.C. § 7(a). The District Court lacked jurisdiction because “a precondition to appeal to the District Court from an adverse order of the Director is a written petition for reconsideration . . . .” Id. at 457-58. See also Cyntje v. Joseph, 17 V.I. 285, 287 (Terr. Ct. 1981).

It is uncontroverted that Heywood initiated an appeal. The Territorial Court was justified in treating her lawsuit as an appeal and based upon this finding, Heywood was required to obtain a determination of her petition for reconsideration before seeking judicial review of her CSA action. A further appeal without exhausting this administrative remedy had no jurisdictional basis and was correctly dismissed.

Dismissal was also warranted because the appeal was brought in the wrong court. Subsection (b) vests appellate jurisdiction over consumer matters exclusively with the United States District Court. Thus, the Territorial Court lacked subject matter jurisdiction over Heywood’s appeal.

Heywood’s territorial action may also be viewed as a collateral proceeding. We find that this is the proper interpretation of counsel’s intent in filing the second proceeding because the complaint stated two causes of action, one of which is a tort claim that could [500]*500not have been raised before the CSA. Therefore, the Territorial Court had subject matter jurisdiction over both claims. We find, however, that the court properly dismissed the action.

A. The Warranty Cause of Action

The doctrine of res judicata requires a finding that Heywood was barred from relitigating her claim in the Territorial Court. Res judicata precludes relitigation of a claim by parties once a final judgment has been reached on the merits. Brown v. Felson, 442 U.S. 127, 131 (1979); Montana v. United States, 440 U.S. 147, 153 (1979).

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Bluebook (online)
21 V.I. 495, 1985 U.S. Dist. LEXIS 12139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heywood-v-cruzan-motors-inc-vid-1985.