Stream v. Gordy

716 N.W.2d 187, 24 I.E.R. Cas. (BNA) 1312, 2006 Iowa Sup. LEXIS 84, 2006 WL 1720397
CourtSupreme Court of Iowa
DecidedJune 23, 2006
Docket04-2013
StatusPublished
Cited by12 cases

This text of 716 N.W.2d 187 (Stream v. Gordy) 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
Stream v. Gordy, 716 N.W.2d 187, 24 I.E.R. Cas. (BNA) 1312, 2006 Iowa Sup. LEXIS 84, 2006 WL 1720397 (iowa 2006).

Opinion

WIGGINS, Justice.

In this case, we must decide whether the district court was correct when it found *189 the county supervisors acted illegally by refusing to provide full-time compensation and benefits to an employee shared between the county attorney’s and the assessor’s offices. We must also decide whether the county is responsible for the legal fees of the county attorney’s and the assessor’s outside counsel. Because the members of the board of supervisors were exercising a legislative function at the time they disapproved the full-time compensation and benefits for the shared employee, a writ of certiorari will not lie against them. Additionally, the county is not responsible for the legal fees of the county attorney’s and the assessor’s outside counsel because the county attorney and the assessor failed to obtain authorization from their respective boards prior to retaining outside counsel. Accordingly, we reverse the judgment of the district court and remand the case for entry of judgment consistent with this opinion.

I. Background Facts and Proceedings.

Charles Stream, the Mahaska County attorney, shared a full-time employee with the sheriffs office, splitting the employee’s time, salary, and benefits. When that employee left Stream’s office, he decided to fill the vacancy in the same manner. In January 2003, Stream informed the Ma-haska County board of supervisors (Board) of his intention to do so at its meeting regarding his budget for fiscal year 2003-04. This budget included $11,000 for the county attorney’s share of the employee’s full-time salary as well as one-half the cost of family benefits for the employee. Stream then hired Carrie Ferguson to fill the part-time secretary vacancy in his office on February 1, paying her $9 an hour. At the time of Ferguson’s hire, Stream told her that if she worked well he would attempt to make her position full-time by having her work part-time in another county office. Stream did not tell Ferguson the employee-sharing arrangement was contingent on approval by the Board. Instead, he told her the Board had already approved such an arrangement.

As he had done in the. past, Stream sought the Board’s approval for his hiring of Ferguson. The Board approved her hire at $9 an hour with no benefits. In March, the Board approved and certified Stream’s budget for fiscal year 2003-04. In April, Stream became aware of a part-time clerk opening in the county assessor’s office. He approached Diane McMahan, the Mahaska County assessor, about hiring Ferguson for that position. Stream and McMahan agreed to share Ferguson as an employee and to split equally the costs of her $22,000 salary and benefits.

Although McMahan’s office was not required to obtain the Board’s approval for the hiring of Ferguson, Stream and McMahan jointly wrote a letter on May 23 to the Mahaska County auditor, with a copy to the Board, notifying the auditor of their arrangement so she could place Ferguson on the payroll at the higher rate of pay with benefits effective June 1. Around this time, McMahan also notified the Ma-haska County conference board of this arrangement as a matter of courtesy. The assessor has the authority to hire office personnel subject to the budget limitations imposed by the conference board. Iowa Code §§ 441.13, 441.16 (2003).

On May 27, after Stream had appeared at a meeting of the Board where he criticized the Board’s lack of communication as to changes in the health insurance program, the Board met with Stream and McMahan to discuss the employee-sharing arrangement. Stream justified the arrangement by claiming it would establish a longer-term employee and avoid potential turnover as a part-time position.

*190 On June 2, the Board again discussed the employee-sharing arrangement, focusing on its costs. Supervisors Lawrence Rouw and Greg Gordy voted not to approve the employee-sharing arrangement while supervisor Willie Van Weelden voted for it. Accordingly, the auditor could not place Ferguson on the payroll as a joint employee of the county attorney and the assessor for the $22,000 salary plus benefits.

Stream learned of the Board’s decision the next day. Stream went to his office, did some quick research, and contacted outside counsel. Without seeking Board approval, Stream hired outside counsel that day. He then asked McMahan if she wanted to join him in pursuing an action against the supervisors over their refusal to confirm the employee-sharing arrangement. She agreed to join in the lawsuit and to share the costs of hiring outside counsel from their respective budgets.

Stream and McMahan filed a petition in certiorari challenging the Board’s decision not to approve the employee-sharing arrangement. They named the individual supervisors of the Board as defendants. The district court issued the writ of certio-rari. The supervisors filed a return to the writ, an answer, and a counterclaim asserting McMahan and Stream did not have the authority to commence the action against the supervisors, retain outside counsel, or pay for such counsel. The supervisors also sought a declaratory judgment asking the court to find Stream and McMahan personally liable for the attorney fees in this case.

The district court entered a ruling partially sustaining the supervisors’ motion for summary judgment and dismissed McMahan’s claims because, as assessor, she had independent statutory authority to hire and pay Ferguson, which was not subject to Board approval. The supervisors’ motion for summary judgment as to Stream, however, was overruled by the court because a genuine issue of material fact existed as to whether the supervisors’ action was arbitrary, capricious, or for illegitimate reasons.

The case proceeded to trial. The district court ruled in favor of Stream finding the supervisors’ failure to approve the employee-sharing arrangement with full-time compensation and benefits was illegal. The court also ruled the county attorney and the assessor acted legally when they retained outside counsel and ordered the county to pay Stream’s outside counsel’s legal fees.

II. Issues.

In this appeal, we must determine: (1) whether the supervisors were exercising a judicial or legislative function when they made their decision not to approve the employee-sharing arrangement; (2) whether the county should pay outside counsel’s legal fees; and (3) whether Stream and McMahan are personally liable for outside counsel’s attorney fees.

III. Scope of Review.

“A writ of certiorari lies where an inferior tribunal, board, or official, exercising judicial functions, has exceeded its proper jurisdiction or otherwise acted illegally.” Waddell v. Brooke, 684 N.W.2d 185, 189 (Iowa 2004). In such an action, the person seeking the writ has the burden of proof. Id. Review of a certiorari proceeding is for correction of errors at law. Id. at 190.

Likewise, “ ‘[a] declaratory judgment action tried at law limits our review to correction of errors at law. We are bound by well-supported findings of fact, but are not bound by the legal conclusions of the district court.’ ”

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Bluebook (online)
716 N.W.2d 187, 24 I.E.R. Cas. (BNA) 1312, 2006 Iowa Sup. LEXIS 84, 2006 WL 1720397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stream-v-gordy-iowa-2006.