State, by Spannaus v. Lloyd A. Fry Roof. Co.

246 N.W.2d 696, 310 Minn. 528, 1976 Minn. LEXIS 1707
CourtSupreme Court of Minnesota
DecidedOctober 22, 1976
Docket46116
StatusPublished
Cited by10 cases

This text of 246 N.W.2d 696 (State, by Spannaus v. Lloyd A. Fry Roof. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, by Spannaus v. Lloyd A. Fry Roof. Co., 246 N.W.2d 696, 310 Minn. 528, 1976 Minn. LEXIS 1707 (Mich. 1976).

Opinion

*529 Todd, Justice.

The Minnesota Pollution Control Agency (PCA), as part of extended administrative and court proceedings concerning defendant, Lloyd A. Fry Roofing Company (Fry), issued an order directing Fry to conduct stack emission tests on emissions generated at its plant in Minneapolis. Fry did not seek direct judicial review of the validity of the order but refused to conduct the specified tests. The state then brought an action in which, among other things, it sought an injunction compelling Fry to conduct the tests. The district court refused to grant such an injunction on the ground that the PCA had no statutory authority to promulgate the regulation pursuant to which it issued the order in question and ordered partial summary judgment for Fry. We affirm.

It is not necessary to recite the facts leading to the presentation of the issues before this court as they are not in dispute. The sole questions raised on appeal are legal issues. The state contends that (1) Fry cannot collaterally attack the validity of PCA’s order, and (2) the PCA has statutory authority to issue the regulation which was the basis for its order.

The state relies upon the following authorities to support its position on the first issue: (1) Minn. St. 115.05, subd. 10; 1 (2) various United States Supreme Court decisions holding that parties may not contest administrative actions in collateral proceedings when applicable statutes provide for review exclusively by direct appeal; (3) a series of United States Supreme Court decisions refusing to permit collateral attack on injunctions; and (4) cases and secondary authorities allegedly supporting the proposition that collateral attack on administrative decisions *530 is generally not permitted. We find that these authorities do not support the state’s contention that Fry’s collateral attack upon this order is improper. Minn. St. 115.05, subd. 10, is not applicable to the present case. Minn. St. c. 115 deals with water pollution whereas all air pollution matters, such as the instant one are governed by Minn. St. c. 116. 2 Chapter 116 contains no provision comparable to § 115.05, subd. 10, prohibiting collateral attacks upon the validity of PCA orders governing water pollution, and we refuse to imply such a provision in c. 116.

We have carefully reviewed the United States Supreme Court decisions cited by the state which preclude collateral attack on administrative orders when governing statutes provide for exclusive review by means of direct appeal. However, these cases are not relevant to the present action in that, as discussed above, the governing statute — c. 116 — does not provide that the exclusive means of review shall be direct appeal.

The United States Supreme Court cases cited by the state which prohibit collateral attack on injunctions are based on the principle that a proper respect for the judicial process requires that no party may, in effect, unilaterally judge his own case and determine that an injunction is invalid. We decline to accept the proposition that we should accord to administrative decisions the same presumptive validity which is traditionally accorded to court-issued injunctions. Such a result would be completely at odds with the concept of an agency as a creature of statute whose authority and jurisdiction are strictly prescribed by the legislature and subject to judicial review by the courts. We have emphatically rejected the proposed analogy between agency orders and judicial injunctions and have held that any action of an administrative agency which is in excess of its statutory power is subject to collateral attack. State ex rel. Spurck v. Civil Serv. Bd. 226 Minn. 253, 32 N. W. 2d 583 (1948).

Finally, we reject the state’s assertion that collateral attacks on administrative decisions are generally not permitted. This *531 alleged rule is supported neither by the decisions nor by the secondary authorities in this field. The state relies most heavily on the case of St. Regis Paper Co. v. United States, 368 U. S. 208, 82 S. Ct. 289, 7 L. ed. 2d 240 (1961). However, a careful reading of this decision reveals that it actually undermines rather than supports the state’s position on this issue. The state also cites sections of Professor Kenneth Culp Davis’ Administrative Law Treatise as ostensibly supporting its position, but we find again that this authority actually reaches the opposite-conclusion:

“In general, a defendant in a civil or criminal proceeding brought to enforce an administrative order or regulation may defend on the ground of invalidity of the order or regulation * * *. The natural assumption is that one may not be held civilly or criminally liable for violating an invalid order or regulation. The tradition is deeply embeded that even statutes may be challenged by resisting enforcement.” 3 Davis, Administrative Law Treatise, § 23.07, p. 320.

See, also, Jaffe, Judicial Control of Administrative Action, 196; 2 Am. Jur. 2d, Administrative Law, § 515, p. 323.

Our decisions are in accord with the general rule stated by Professor Davis that collateral attack on administrative agency orders in enforcement proceedings is proper. See, Martin v. Wolfson, 218 Minn. 557, 16 N. W. 2d 884 (1944); State ex rel. Spurck v. Civil Serv. Bd. supra; State ex rel. Ludwig v. City of Bemidji, 298 Minn. 27, 212 N. W. 2d 876 (1973).

We conclude that the trial court properly determined that Fry’s collateral attack on the PCA order in the present enforcement proceedings is not barred by Fry’s failure to challenge the order through some direct appeal procedure.

The record in this case indicates that Fry has on several occasions conducted at its own expense emission tests and furnished the information obtained to the PCA. The expense of these tests is not minimal. Further, in a Federal court proceeding, City of Minneapolis v. Lloyd A. Fry Roofing Co. (D. Minn.) No. 4-69 Civil 91, September 21, 1971 (unreported decision by *532 Judge Gunnar H. Nordbye), Fry’s emissions were found to meet the standards of the PCA. Fry has never denied, during the course of these proceedings, that the PCA possesses statutory authority to conduct its own tests upon Fry’s emissions at the PCA’s expense pursuant to Minn. St. 116.091, subd. 3. 3 Nor does Fry object to the PCA’s conducting such tests at the agency’s expense. However, Fry refuses to expend additional funds of its own for carrying out emission tests, absent specific statutory authority permitting the PCA to order such additional procedures.

The state does not dispute the fact that nowhere in c. 116 is the PCA explicitly vested with authority to issue orders or regulations authorizing orders of the type here involved. Rather, the state seeks to infer the existence of such power from other powers which are explicitly granted to the PCA by statute. Analysis of c. 115 and c. 116, and of their legislative history, however, reveals that to read such authority into the statutes would contravene their language and intent.

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Bluebook (online)
246 N.W.2d 696, 310 Minn. 528, 1976 Minn. LEXIS 1707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-by-spannaus-v-lloyd-a-fry-roof-co-minn-1976.