In re the Amended Administrative Penalty Order to Westling Manufacturing, Inc.

442 N.W.2d 328, 1989 Minn. App. LEXIS 732
CourtCourt of Appeals of Minnesota
DecidedJune 27, 1989
DocketNo. C1-89-83
StatusPublished
Cited by13 cases

This text of 442 N.W.2d 328 (In re the Amended Administrative Penalty Order to Westling Manufacturing, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Amended Administrative Penalty Order to Westling Manufacturing, Inc., 442 N.W.2d 328, 1989 Minn. App. LEXIS 732 (Mich. Ct. App. 1989).

Opinion

OPINION

HUSPENI, Judge.

Relator Westling Manufacturing, Inc. (Westling) appeals the Commissioner’s refusal to estop respondent Minnesota Pollution Control Agency (MPCA) from finding Westling in violation of hazardous waste documentation requirements. We affirm.

FACTS

Westling produces hazardous wastes in the process of rebuilding auto parts, and must comply with documentation requirements for personnel working with the waste. In 1982 John Goslinga became Westling’s Environmental Protection Agency compliance officer and was responsible for monitoring Westling’s compliance with the hazardous waste rules.

Between 1982 and 1986 MPCA inspected Westling’s premises and noted various violations. Agency specialists then worked with Westling to help it comply with the rules. An April 1986 inspection was followed by a May 15, 1986, letter written by MPCA specialist Donna Portner informing Westling that compliance with the rules required it to “develop and implement a personnel training program.” Portner’s letter cited the applicable Minnesota rules by number and specifically stated “Documentation of personnel training is required.” Her letter described the required documentation. Goslinga’s written reply a month later stated “our personnel training program will be documented.”

In July 1986, Goslinga mailed Portner various documents including an eight item list labeled “[Personnel] Training Program.” This conformed neither to the specifications set out in Portner’s letter nor to the cited rule. In an October 8, 1986, phone call, Portner discussed the plan’s defects with Goslinga and told him to resubmit a modified training plan containing the required information. She also sent [330]*330Goslinga an address from which he could obtain copies of the hazardous waste rules and a page cite to the specific rule on personnel training programs.

On October 31, 1986, Westling submitted a seven item list entitled “Annual Personnel Training Program Outline.” This document, while remedying some of its predecessor’s failures, was found by the Administrative Law Judge (AU) to be less detailed than the one Westling submitted in July.

In a letter dated September 15, 1987, Portner requested that Goslinga send the agency documented new and annual employee training records. Soon after sending this letter, Westling’s MPCA file was assigned to Patricia Leach. Two weeks later, the agency received “sample” training documents from Westling including the same eight item list submitted in July 1986. No documented employee training records were submitted.

On October 12, 1987, Leach sent a letter to Goslinga stating

Based on the information you provided [in your letter] Westling Manufacturing Company is currently in compliance with the requirements of the Minnesota Hazardous Waste Rules. Please be aware that during future inspections your records will be reviewed to verify that you are documenting weekly inspections and personnel training.

Subsequently, during an arranged inspection of Westling’s premises, its personnel director was asked to produce documentation of employee training. The inspectors, upon being shown two copies of the eight item list, told the personnel director that these documents were inadequate to meet the requirements under the rule. As a result, the MPCA Commissioner issued an administrative penalty order.

At a hearing in which Westling contested the penalty order, the AU found the training documents to be insufficient under the rule. However, the AU also estopped MPCA from assessing any violations of that rule because of Leach’s letter. The Commissioner, noting that the AU made no finding of governmental misconduct, refused to estop MPCA from determining a violation. Westling seeks review of the Commissioner’s decision.

ISSUES

1. What is the standard of review?

2. Did the Commissioner use the correct standard to determine the applicability of equitable estoppel?

3. Did the Commissioner err by failing to equitably estop the MPCA from finding Westling in violation of hazardous waste documentation requirements?

ANALYSIS

I.

Generally, where an agency’s conclusions are

based on legal rather than factual considerations, the reviewing court is not bound by the decision of the agency and need not defer to agency expertise.

No Power Line, Inc. v. Minnesota Environmental Quality Council, 262 N.W.2d 312, 320 (Minn.1977). However, “[a] reviewing court will defer to an administrative agency when the agency is performing its function as a factfinder.” Bouza v. Gallagher, 416 N.W.2d 126, 128 (Minn.Ct.App.1987), pet. for rev. denied (Minn. Feb. 12, 1988).

When reviewing a final agency order [this] court may affirm the decision of the agency or remand the case for further proceedings; or it may reverse or modify the decision if the substantial rights of the petitioners may have been prejudiced because the administrative finding, inferences, conclusion, or decisions are:
⅜ * ⅜! % *
(d) Affected by other error of law; or
(e) Unsupported by substantial evidence in view of the entire record as submitted;

Minn.Stat. § 14.69 (1988). On appeal, both parties allege that equitable estoppel is a matter of law and Westling urges applica[331]*331tion of section 14.69(d) to support its arguments.

It has been stated:
When this court reviews an agency’s ruling on a legal question, we are not bound by the agency’s ruling. The application of equitable estoppel is a question of law. Therefore, the commissioner’s ruling on the application of equitable estoppel to the facts of this case is subject to this court’s independent review.

Department of Human Services v. Muriel Humphrey Residences, 436 N.W.2d 110, 117 (Minn.Ct.App.1989), pet. for rev. denied (Minn. April 26, 1989) (citations omitted). See also City of Eden Prairie v. Liepke, 403 N.W.2d 252, 254 (Minn.Ct.App. 1987); Petition of Halberg Construction & Supply Inc., 385 N.W.2d 381, 383 (Minn.Ct.App.1986), pet. for rev. denied (Minn. June 19, 1986); Alwes v. Hartford Life and Accident Insurance Co., 372 N.W.2d 376, 378 (Minn.Ct.App.1985); Beaty v. Minnesota Board of Teaching, 354 N.W.2d 466, 470 (Minn.Ct.App.1984).

However, the Minnesota Supreme Court has stated:

Estoppel depends on the facts of each case and is ordinarily a fact question for the jury to decide.

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Matter of Westling Mfg., Inc.
442 N.W.2d 328 (Court of Appeals of Minnesota, 1989)

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Bluebook (online)
442 N.W.2d 328, 1989 Minn. App. LEXIS 732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-amended-administrative-penalty-order-to-westling-manufacturing-minnctapp-1989.