Pisgah Oil Co. v. Western North Carolina Regional Air Pollution Control Agency

533 S.E.2d 290, 139 N.C. App. 402, 2000 N.C. App. LEXIS 897
CourtCourt of Appeals of North Carolina
DecidedAugust 1, 2000
DocketCOA99-910
StatusPublished
Cited by3 cases

This text of 533 S.E.2d 290 (Pisgah Oil Co. v. Western North Carolina Regional Air Pollution Control Agency) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pisgah Oil Co. v. Western North Carolina Regional Air Pollution Control Agency, 533 S.E.2d 290, 139 N.C. App. 402, 2000 N.C. App. LEXIS 897 (N.C. Ct. App. 2000).

Opinion

McGEE, Judge.

The Western North Carolina Regional Air Pollution Control Agency (the Agency) is an administrative agency established pursuant to N.C. Gen. Stat. § 143-215.112 (1999) as a local air pollution control program. Mike Matthews (Matthews), an inspector for the Agency, observed David Bylko (Bylko), an employee of Pisgah Oil Company, Inc. (petitioner), unload fuel from his tanker truck into two *404 storage tanks at the Bethel Grocery store in Waynesville, North Carolina on 8 August 1998. Matthews observed that Bylko was not utilizing required vapor recovery equipment on his tanker truck while unloading fuel, in violation of the air quality rules and regulations adopted by the Agency’s board. When Matthews approached Bylko to question him, Bylko admitted that he had not been using the equipment. However, Bylko had started filling the second tank only a few minutes before Matthews spoke to him, and Bylko immediately attached the vapor recovery equipment before continuing to fill the second tank.

The Agency informed petitioner in a letter dated 14 August 1998 that a fine of $7,500, consisting of $5,000 for the first tank and $2,500 for the second, had been assessed for the violation. Petitioner asked Bylko to resign from his position, and he complied. Petitioner timely appealed the penalty for the reasons that: this was petitioner’s first offense; the financial burden that such a large sum would place upon petitioner, which is a small company compared to its competitors, was unfair; and petitioner’s management had a “continued commitment to comply with all pertinent regulations.” The Agency removed the $2,500 fine on 26 October 1998 as to the second tank while upholding the $5,000 fine for the first tank.

Petitioner filed a petition for judicial review in Haywood County Superior Court on 20 November 1998. The petition refers to N.C.G.S. § 143-215.112(d)(la), which provides three factors for consideration in determining the amount of the penalty. The petition further states that:

Petitioner excepts to the decision of the [Agency] determining a fine of $5,000.00 in that [the Agency] did not consider the foregoing factors and the decision of [the Agency] was unsupported by substantial evidence and/or was arbitrary and capricious, and/or was an unlawful deprivation of Petitioner’s rights to due process pursuant to both the North Carolina and United States Constitution^].

The petition filed by petitioner was heard on 3 May 1999. The trial court stated that it considered the petition, the response to the petition, and the record of the proceedings submitted by the Agency in entering its order on 7 May 1999 affirming the fine of $5,000. In its order, the trial court found that petitioner had admitted the violations for which penalties were levied by the Agency, and the Agency had the discretion to levy civil penalties for violations pursuant *405 to N.C.G.S. § 143-215.112(d)(la). Petitioner filed timely notice of appeal.

In its brief, petitioner first argues the trial court erred in affirming a fine that was “arbitrary and capricious” where respondent did not consider the statutory factors of N.C.G.S. § 143-215.112(d)(la) in determining the amount of the penalty assessed. The proper standard for the superior court’s judicial review “depends upon the particular issues presented on appeal.” Amanini v. N.C. Dep’t of Human Resources, 114 N.C. App. 668, 674, 443 S.E.2d 114, 118 (1994). When the petitioner “questions (1) whether the agency’s decision was supported by the evidence or (2) whether the decision was arbitrary or capricious, then the reviewing court must apply the ‘whole record’ test.” In re Appeal by McCrary, 112 N.C. App. 161, 165, 435 S.E.2d 359, 363 (1993). See also Associated Mechanical Contractors v. Payne, 342 N.C. 825, 467 S.E.2d 398 (1996) (concluding that the proper standard of review of agency decisions to determine the sufficiency of the evidence is the “whole record” test). “The ‘whole record’ test requires the reviewing court to examine all competent evidence (the ‘whole record’) in order to determine whether the agency decision is supported by ‘substantial evidence.’ ” Amanini, 114 N.C. App. at 674, 443 S.E.2d at 118.

As to appellate review of a superior court order regarding an agency decision, “the appellate court examines the trial court’s order for error of law. The process has been described as a twofold task: (1) determining whether the trial court exercised the appropriate scope of review and, if appropriate, (2) deciding whether the court did so properly.” Id. at 675, 443 S.E.2d at 118-19 (citation omitted). “ ‘As distinguished from the “any competent evidence” test and a de novo review, the “whole record” test “gives a reviewing court the capability to determine whether an administrative decision has a rational basis in the evidence.” ’ ”ACT-UP Triangle v. Commission for Health Services, 345 N.C. 699, 706-07, 483 S.E.2d 388, 392 (1997); Bennett v. Bd. of Education, 69 N.C. App. 615, 618, 317 S.E.2d 912, 915, cert. denied, 312 N.C. 81, 321 S.E.2d 893 (1984) (quoting Overton v. Board of Education, 304 N.C. 312, 322, 283 S.E.2d 495, 501 (1981)).

First, it appears from the record that the trial court exercised the appropriate scope of review in its order. The order states that the trial court had considered “the Petition filed by the Petitioner, the Response to the Petition and the Record of Proceedings submitted by the Agency[.]” Therefore, the trial court employed the whole record test as it “examine[d] all competent evidence (the ‘whole record’) in *406 order to determine whether the agency decision [was] supported by ‘substantial evidence.’ ” See Amanini, 114 N.C. App. at 674, 443 S.E.2d at 118.

Second, we find the trial court properly applied the whole record test. There is sufficient evidence in the record to show the Agency considered the appropriate factors in N.C.G.S. § 143-215.112(d)(la) in levying the $5,000 fine against petitioner. The factors to be considered are “the degree and extent of harm caused by the violation, the cost of rectifying the damage, and the amount of money the violator saved by not having made the necessary expenditures to comply with the appropriate pollution control requirements.” N.C.G.S. § 143-215.112(d)(la). The Agency may then assess “a penalty not to exceed ten thousand dollars ($10,000) per day for so long as the violation continues.” Id.

The Agency’s reasons for assessing the $5,000 fine were set forth in the minutes of its 14 September 1998 Agency board meeting:

Mr.

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533 S.E.2d 290, 139 N.C. App. 402, 2000 N.C. App. LEXIS 897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pisgah-oil-co-v-western-north-carolina-regional-air-pollution-control-ncctapp-2000.