Pfiffner v. Roth

379 N.W.2d 357, 54 U.S.L.W. 2417, 1985 Iowa Sup. LEXIS 1189
CourtSupreme Court of Iowa
DecidedDecember 18, 1985
Docket85-105
StatusPublished
Cited by7 cases

This text of 379 N.W.2d 357 (Pfiffner v. Roth) 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
Pfiffner v. Roth, 379 N.W.2d 357, 54 U.S.L.W. 2417, 1985 Iowa Sup. LEXIS 1189 (iowa 1985).

Opinions

LARSON, Justice.

In an earlier appeal, we held that the Iowa Competition Law, Iowa Code chapter 553, was violated by the city of Dubuque, and various city officials, when they discouraged the operation of an ambulance business in competition with the city’s. We remanded the case for assessment of damages. Neyens v. Roth, 326 N.W.2d 294 (Iowa 1982). After the first appeal, two of the original plaintiffs assigned their interests to the present plaintiff, Pfiffner, who pursued the case through the damage stage. This appeal is from a judgment awarding Pfiffner actual damages, punitive damages, and attorneys fees. We affirm.

The issues raised on appeal are: (1) whether a 1984 amendment to chapter 553, establishing an exemption for a city, is applicable; (2) whether the trial court improperly computed actual damages; (3) whether the court erred in awarding punitive damages; and (4) whether the court erred in its award of attorneys fees. (Xhe defendants, including the city and various officers, will be collectively referred to in this opinion as the city.)

I. The 1984 Amendment.

In considering the effect of the 1984 amendment to the competition law, exempting cities, a look at our earlier opinion is necessary. As we noted there, the impact of chapter 553, on a city, turned on two issues: First, whether a city is a “person” under the meaning of the act. We held it was, because of this language: “[A] ‘person’ means a natural person, estate, trust, enterprise or government agency.” Iowa Code § 553.3(4) (1979) (emphasis added). See Neyens, 326 N.W.2d at 297. A “government agency,” in turn, is defined as “the state, its political subdivisions, and [359]*359any public agency supported in whole or in part by taxation.” Iowa Code § 553.3(3) (1979). See Neyens, 326 N.W.2d at 297.

Neyens also considered the question of whether the city’s regulation of the ambulance business was covered by Iowa Code section 553.6(4), which exempted from coverage of the Iowa Competition Law “[t]he activities or arrangements expressly approved or regulated by any regulatory body.or officer acting under authority of this state or of the United States.” The city of Dubuque argued, in Neyens, that while cities were not specifically exempted by section 553.6(4), the city’s actions here were nevertheless exempt, because its regulation of ambulance services was “under authority” of the state. 326 N.W.2d at 298. This argument was based on the “home rule amendment” which provided that “[mjunicipal corporations are granted home rule power and authority, not inconsistent with the laws of the General Assembly, to determine their local affairs, and government_” Iowa Const, amend. 2 (1968).

In Neyens, we held this constitutional grant of power did not make the city’s ambulance regulation a state action; it only amounted to a position of neutrality on the part of the state. We noted that the Supreme Court had recently held that “state action,” under the federal anti-trust act, could not be predicated on inaction by the state. To be clothed with immunity, the monopoly must be a “clearly articulated and affirmatively expressed policy” of the state. Neyens, 326 N.W.2d at 299 (quoting Community Communications Co. v. City of Boulder, 455 U.S. 40, 54, 102 S.Ct. 835, 842, 70 L.Ed.2d 810, 821 (1982)). As the Supreme Court said in Community Communications,

plainly the requirement of “clear articulation and affirmative expression” is not satisfied when the State’s position is one of mere neutrality respecting the municipal actions challenged as anticompeti-tive. A State that allows its municipalities to do as they please can hardly be said to have “contemplated” the specific anticompetitive actions for which- municipal liability is sought. Nor can those actions be truly described as “comprehended within the powers granted,” since the term, “granted,” necessarily implies an affirmative addressing of the subject by the State.

455 U.S. at 55, 102 S.Ct. at 843, 70 L.Ed.2d at 821 (emphasis in original).

For these reasons, we held that the exemption of section 553.6(4), provided for the state, did not apply to the city in this case. Neyens, 326 N.W.2d at 299.

After Neyens was decided, the legislature amended chapter 553 by adding a new subparagraph, section 553.6(5), to exempt “[t]he activities of a city ... when acting within its statutory or constitutional home rule powers and to the same extent that the activities would not be prohibited if undertaken by the state.” See 1984 Iowa Acts eh. 1020, § 1. (At the same time, the legislature also amended chapter 553 to eliminate punitive damages against a city. That matter will be discussed later.)

Does the amendment to section 553.6 affect this ease? The city of Dubuque says it does. First, it argues, the statute has always excluded cities from its coverage, and the 1984 amendment merely clarified the matter, thereby “correcting” the interpretation given to the statute by this court in Neyens. Alternatively, it argues the amendment should be given retrospective effect, even if it amounts to new law. We reject both arguments.

First, we think the amendment did more than merely clarify the prior law. As a general observation, a change such as this, which provided for an exemption where none existed before, would have to be considered a substantive change. In interpreting such an amendment to a statute, there is a presumption of a change in legal rights. 1A Sutherland, Statutes and Statutory Construction § 22.30, at 265 (Sands 4th ed. 1985). If the statute in its original form had been subject to doubts about its meaning, the argument that it was a mere clarification would, perhaps, be more tenable. See 2A Sutherland, supra, [360]*360§ 49.11, at 414 (1984). There was no such doubt in this case. Section 553.6(4) was clear; cities were not covered by the state-action exemption.

Even assuming the 1984 amendment created new law, the issue remains whether it should have retrospective effect as claimed by the city. We summarily dispose of this issue. The amendment does not say it is to be given retrospective application. It is therefore presumed to be prospective only. Iowa Code § 4.5. Moreover, this plaintiff had a right of recovery against the city under the old law but would have none under the new one. Ordinarily, we will not give retrospective effect to an amendment when it has that effect. See Vinson v. Linn-Mar Community School District, 360 N.W.2d 108, 121 (Iowa 1984); 2 Sutherland, supra, § 41.02, at 247-49 (1973).

II. The Award of Actual Damages.

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Pfiffner v. Roth
379 N.W.2d 357 (Supreme Court of Iowa, 1985)

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Bluebook (online)
379 N.W.2d 357, 54 U.S.L.W. 2417, 1985 Iowa Sup. LEXIS 1189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pfiffner-v-roth-iowa-1985.