Net Midwest, Inc. v. State Hygienic Laboratory

526 N.W.2d 313, 1995 Iowa Sup. LEXIS 7, 1995 WL 25982
CourtSupreme Court of Iowa
DecidedJanuary 18, 1995
Docket93-1290
StatusPublished
Cited by3 cases

This text of 526 N.W.2d 313 (Net Midwest, Inc. v. State Hygienic Laboratory) 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
Net Midwest, Inc. v. State Hygienic Laboratory, 526 N.W.2d 313, 1995 Iowa Sup. LEXIS 7, 1995 WL 25982 (iowa 1995).

Opinion

NEUMAN, Justice.

This is an appeal by a private laboratory from a district court’s ruling that the services performed by the State Hygienic Laboratory are exempt from Iowa’s noncompetition-by-government act, Iowa Code § 23A.2 (1989). We concur in the district court’s interpretation and application of the pertinent statutes and affirm.

I. Background Facts and Proceedings.

Plaintiff, Net Midwest, Inc. (Net), is an Illinois corporation which operates one of its laboratories in Cedar Falls, Iowa. It provides environmental analytical testing services to individuals, private businesses, and governmental agencies. Defendant State Hygienic Laboratory (SHL) operates under the authority of Iowa Code section 263.7 as a permanent part of the University of Iowa, offering laboratory analytical services to government and private entities in the areas of human disease, environmental quality, and public health. SHL is authorized by statute to provide services to the Iowa Department of Public Health and, for a fee, performs laboratory analyses requested by any state institution, citizen, school, municipality, or local board of health. Iowa Code § 263.8.

The overlap in the types of testing performed by SHL and Net has resulted in competition between the two labs. In January 1989, Net made a written complaint to the University of Iowa claiming that the sale of laboratory testing services by SHL violated Iowa Code section 23A.2, the Iowa non-competition act. 1 Dissatisfied with the University’s response, Net appealed to the board of regents. See 681 Iowa Admin.Code 9.4(8) (describing procedure for resolving complaints involving competition by regents institutions with private enterprise). The regents denied Net’s appeal. Net then commenced an action in equity in the district court seeking injunctive relief against SHL for violation of the noncompetition act.

Following trial, the district court held that SHL’s testing services fall within Iowa Code section 23A.2(10)(k)(9), an exemption from the noncompetition act for “on-campus activities of an institution or a school under the control of the state board of regents” relating to “[gjoods, products, or professional services which are produced, created, or sold incidental to the schools’ teaching, research, and extension missions.”

II. Issues on Appeal.

On appeal Net advances three grounds for reversal. It claims the court erred in applying section 23A.2(10)(k)(9) because the work of SHL (1) does not constitute a professional service, (2) is not incidental to the school’s extension mission, and (3) is not performed on-campus.

Because Net’s petition was tried in. equity, see Iowa Code § 23A.4, our review is de novo. Iowa RApp.P. 4. We shall consider Net’s arguments in turn.

A. Professional Services. This court has established two tests by which an occupation may qualify as a “profession.” The first measures the degree of preparation necessary. Qualification as a “professional” requires more than mere training. An individual must attain special intellectual achievements, such as a liberal arts education or its equivalent, in order to qualify. Halverson v. Lincoln Commodities, Inc., 297 N.W.2d 518, 523 (Iowa 1980); see also State v. Winneshiek Co-op Burial Ass'n 237 Iowa 556, 561, 22 N.W.2d 800, 803 (1946) (profession implies attainment of specialized knowledge “as distinguished from mere skill”). The second *315 test concerns the occupation’s purpose. Public service is the hallmark of a profession. While it may also provide a person with a livelihood, a profession has as its primary purpose the application of knowledge to the service of others. Halverson, 297 N.W.2d at 523; Winneshiek, 237 Iowa at 561, 22 N.W.2d at 803.

As to the first test of professionalism, the record reflects that SHL employees possess the requisite level of education and preparation. To obtain employment as an entry-level chemist at SHL, a person must ordinarily hold a college degree in chemistry or a related field of science. All entry-level analysts work under direct supervision. Rising to the rank of supervisor requires years of experience as a chemist and, most often, possession of a graduate degree. On the question of the occupation’s purpose, SHL services promote the public good by identifying and curtailing hazardous threats in the areas of communicable diseases, environmental quality, and public health. In particular, SHL analysis enables clients to meet regulatory requirements that enhance environmental protection. Most of SHL’s customers do not have the expertise to perform these services on their own.

Based on these facts, we agree with the district court’s conclusion that the services provided by SHL are “professional services” within the meaning of Iowa Code section 23A.2(10)(k)(9).

B. Extension Mission. Net next challenges the district court’s determination that SHL’s services fall within the University of Iowa’s extension mission. It claims the University’s extension mission relates only to its teaching and research services and thus does not include SHL. We believe, however, that the ordinary use of the term “extension mission” contemplates the kind of services provided by SHL.

It is true that chapter 23A does not specifically define “extension mission.” However, we may gain insight into the term’s meaning by “reference to prior judicial decisions, similar statutes, the dictionary, or common generally accepted usage.” State v. Williams, 315 N.W.2d 45, 49 (Iowa 1982). Also, when more than one statute is pertinent to the inquiry, we are obliged to consider the statutes together in an attempt to harmonize them. American Asbestos Training Ctr. Ltd. v. Eastern Iowa Community College, 463 N.W.2d 56, 58 (Iowa 1990). Through these means, we give effect to legislative intent. Id.; see Iowa Fed’n of Labor v. Iowa Dep’t of Job Serv., 427 N.W.2d 443, 445 (Iowa 1988) (discerning legislative intent is ultimate goal of statutory interpretation).

Used in the educational context, a common definition of extension is:

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Cite This Page — Counsel Stack

Bluebook (online)
526 N.W.2d 313, 1995 Iowa Sup. LEXIS 7, 1995 WL 25982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/net-midwest-inc-v-state-hygienic-laboratory-iowa-1995.