McClure v. Iowa Real Estate Commission

356 N.W.2d 594, 1984 Iowa App. LEXIS 1689
CourtCourt of Appeals of Iowa
DecidedSeptember 6, 1984
Docket84-241
StatusPublished
Cited by4 cases

This text of 356 N.W.2d 594 (McClure v. Iowa Real Estate Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClure v. Iowa Real Estate Commission, 356 N.W.2d 594, 1984 Iowa App. LEXIS 1689 (iowactapp 1984).

Opinion

SACKETT, Judge.

The trial court disallowed the action of the Respondent-Appellant, Iowa Real Estate Commission (hereinafter “Respondent” or “Real Estate Comm.”), which revoked the broker’s license of the Petitioner-Appellee, Forrest McClure (hereinafter “Petitioner” or “Mr. McClure”).

Mr. McClure is a licensed real estate broker who, at all times relevant to this appeal, was employed by Iowa Realty Co., Inc. On June 22, 1982, Mr. McClure met with John and Kathleen Hill at their home and discussed listing it for sale, though no listing agreement was ever entered into by the parties. Petitioner had no further contact with the Hills until October 17, 1982, when John and Kathleen attended an open house which Mr. McClure was conducting at 2114 Glenbrook Drive in Des Moines, Iowa.

Mr. and Mrs. Hill signed an offer to purchase the home on Glenbrook Drive and, in addition, gave the petitioner a $500 check in earnest money. The earnest money was deposited into the trust account of Iowa Realty Co., Inc.

Mr. & Mrs. Hill had problems in obtaining the necessary financing for the home on Glenbrook. On December 3, 1982, after meeting with an official of the Veteran’s Administration, it was clear that financing would not be available, and the Hills’ offer to purchase became null and void. On or about December 17, 1982, Mr. McClure asked Iowa Realty to issue a refund check to the Hills on their earnest money deposit. A check was drawn, but never delivered to Mr. and Mrs. Hill. Petitioner signed the names of both John and Kathleen Hill to the back of the check, along with his own signature, and deposited the money into his personal account.

The evidence at the hearing was conflicting on how the return of the deposit was to be handled. John Hill testified that he tried to contact Mr. McClure several times about the money and McClure said he was bringing it to the Hills. Mr. Hill also stated that he thought Iowa Realty might keep the money in case the Hills made an offer on another house. He did not know until February about the check that Iowa Realty wrote in December to refund the earnest money.

Mr. McClure testified that he informed John Hill of the December refund check. Petitioner further testified that Mr. Hill authorized him to cash it as payment for an appraisal on property which Hill owned near Perry, Iowa. However, John Hill stated he did not know about the appraisal and thought the money would be held for another offer. In addition, petitioner had no written agreement for the appraisal, did not bill for the appraisal, promptly returned the entire $500 to Iowa Realty which he has claimed was owed to him for the appraisal and had the Hills state in a written letter that they were not concerned *596 about the late return of the money. There is evidence to suggest that Mr. McClure tried to alter this letter by adding language to the effect that the Hills thought the money was being held for another offer to purchase real estate. Finally, petitioner did not ordinarily charge fees for doing appraisal work.

The Commission rejected McClure’s story and found that the Hills had no knowledge of the December refund check until February. The Commission revoked McClure’s license for violating Iowa Code §§ 117.29(3) (making false statements and engaging in unethical conduct detrimental to the public), .34(7) (failing to remit money belonging to others), .34(8) (being unworthy to act as broker) (1983).

We have the authority to hear and decide this appeal pursuant to Iowa Code section 17A.20 which provides that “[a]n aggrieved or adversely affected party to the judicial review proceeding may obtain a review of any final judgment of the district court under this chapter by appeal to the supreme court...” Code of Iowa § 17A.20 (1983). Judicial review of administrative agency action is not de novo. The review is concerned with whether the agency decision is supported by substantial evidence, when the record is reviewed as a whole. Iowa Code § 17A.19(8)(f) (1983); Herring v. Iowa Law Enforcement Academy, 341 N.W.2d 65, 66 (Iowa Ct.App.1983). Our review is limited to a determination of whether the district court made errors of law when it exercised its power of review of agency decision under Iowa Code section 17A.19. Woods v. Iowa Department of Job Service, 315 N.W.2d 838, 840 (Iowa Ct.App.1981), Jackson County Public Hospital v. PERB, 280 N.W.2d 426, 429 (Iowa 1979). Iowa Code section 17A.19 limits the district court’s review to a determination of whether the agency committed any of the errors of law set out in section 17A.19(8). This is a finite list which provides that relief be offered a petitioner who has had substantial rights prejudiced if the agency action was:

a. In violation of constitutional or statutory authority;
b. In excess of the statutory authority of the agency;
c. In violation of an agency rule;
d. Made upon unlawful procedure;
e. Affected by other error of law;
f. In a contested case, unsupported by substantial evidence in the record made before the agency when the record is viewed as a whole; or
g. Unreasonable, arbitrary or capricious or characterized by an abuse of discretion or a merely unwarranted exercise of jurisdiction.

Code of Iowa § 17A.19(8)(a)-(g) (1983). Therefore, to determine if the district court properly exercised its power of judicial review “this court applies the standards outlined in section 17A.19(8) to the agency decision, [with consideration of the whole record,] to determine whether this court’s conclusions are the same as those of the district court. If the conclusions are the same, affirmance is in order, if they are not, reversal may be required.” Jackson County, 280 N.W.2d at 429-30. Chapter 17A of the Code provides that the district court shall reverse or modify the agency decision if it is affected by error in the application of an administration rule or the law. Code of Iowa § 17A.19(8)(a), (b), (c), (d), (e) (1983). Reversal or modification may also occur if the agency action is not supported by substantial evidence in the record made before the agency, when the record is viewed as a whole. Id. at § 17A.19(8)(f). Or, if the agency acted unreasonably, if their decision was arbitrary or capricious, or a clearly unwarranted exercise of discretion. Id. at § 17A.19(8)(g).

The district court reviewed the agency’s findings of fact under the substantial evidence standard of section 17A.19(8)(f) and upheld them. This appeal therefore does not involve any review of the correctness of the Commission’s findings of fact. The only issue is whether the Commission’s revocation of Mr.

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Bluebook (online)
356 N.W.2d 594, 1984 Iowa App. LEXIS 1689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclure-v-iowa-real-estate-commission-iowactapp-1984.