Bishop v. Iowa State Bd. of Public Instruction

• Decision Date: 12 November 1986
• Docket Number: No. 85-1616,85-1616
• Citation: 395 N.W.2d 888
• Parties: 35 Ed. Law Rep. 784 Lewis BISHOP and Ronald Thompson, Appellants, v. IOWA STATE BOARD OF PUBLIC INSTRUCTION, Iowa State Department of Public Instruction, and Valley Community School District, Appellees.
• Court: Iowa Supreme Court

Page 888

395 N.W.2d 888

35 Ed. Law Rep. 784

Lewis BISHOP and Ronald Thompson, Appellants, v. IOWA STATE BOARD OF PUBLIC INSTRUCTION, Iowa State Department of Public Instruction, and Valley Community School District, Appellees.

No. 85-1616.

Supreme Court of Iowa.

Nov. 12, 1986.

James L. Sayre of Sayre & Gribble, P.C., Des Moines, for appellants.

Thomas J. Miller, Atty. Gen., Merle Wilna Fleming, Asst. Atty. Gen., and Allan J. Carew of Fuerste, Carew, Coyle, Juergens & Sudmeier, Dubuque, for appellees.

Considered by HARRIS, P.J., and McGIVERIN, WOLLE, LAVORATO, and NEUMAN, JJ.

McGIVERIN, Justice.

Lewis Bishop and Ronald Thompson petitioned for judicial review of the decision of the Iowa State Board of Public Instruction (BPI) authorizing the school board of the Valley Community School District (District) in its discretion to pay attorney's fees incurred by the District superintendent, Richard Burmeister, in proceedings before the Iowa professional teaching practices commission. The district court ruled the school board had the power to make such a payment and remanded the case to the BPI for the making of a record and a decision on whether the exercise of the power under these circumstances constituted an abuse of discretion. Upon consideration of the issue raised on the appeal, we affirm and remand this case to the BPI.

On March 31, 1983, the Valley Education Association, the teacher's "employee organization," Iowa Code section 20.3(4), for the Valley Community School District, filed a complaint with the Iowa professional teaching practices commission charging superintendent Burmeister with unprofessional practices. Iowa Code § 272A.6 (1983); see 640 Iowa Admin.Code ch. 3, 4. The complaint emanated from the temporary suspension by Burmeister of five teachers of the school district, resulting from a drinking incident, with the apparent knowledge and implied approval of the school board.

The school board of the District approved payment of Burmeister's attorney's fees incurred as a result of the professional teaching practices commission proceeding. Payment of this bill for $6,374.10 was approved generally on February 13, 1984.

On March 6, Bishop and Thompson (hereafter Bishop) filed a joint affidavit of appeal with the state board of public instruction, challenging the school board's payment of the legal expenses of Burmeister. Iowa Code § 290.1.

The school board by specific resolution on April 9 affirmed its approval of payment of Burmeister's legal expenses. Minutes of this meeting as well as the February 13, 1984, meeting, and a December 13, 1982, meeting of the school board were submitted to the BPI. Iowa Code § 290.2.

A panel of the BPI conducted a hearing on the appeal. Iowa Code § 290.5. The panel in its decision found that the school board had the authority to pay the legal fees of its superintendent incurred in a proceeding against him before the professional teaching practices commission. See Iowa Code § 290.3. This decision was approved by the BPI on review of the record. Iowa Code §§ 290.5; 257.10(4). The decision also noted the exercise of this power by the school board was not an abuse of discretion.

Bishop petitioned for judicial review in district court of the BPI's decision, asserting the decision was based on an error of law. Iowa Code § 17A.19(8)(e).

In ruling on the merits of the petition for judicial review, the court agreed with the BPI's construction of Iowa Code section 279.37, to the effect that the school board of a local school district has the authority to pay the legal expenses of an administrator for the defense of the administrator before the professional teaching practices commission. The court, however, ruled there was no adequate record on which to review the BPI's decision that the school board did not abuse its discretion in this exercise of power under section 279.37. The case was remanded to the BPI for the development of the record and a new determination on the issue of whether the school board abused its discretion in the present case. No appeal was taken from the remand ruling.

Petitioners appeal from a portion of the district court's ruling on judicial review, Iowa Code section 17A.20, contending the court erred in its construction of Iowa Code section 279.37 that the school board had authority to pay Burmeister's legal fees. The BPI, on cross-appeal, challenges a determination that Bishop and Thompson have standing to bring this proceeding. We assume, without deciding, that petitioners have standing, and therefore do not discuss the issue raised in the cross-appeal. Our consideration concentrates on the appeal.

As a preliminary matter, we determine the district court's ruling is a final judgment for purposes of our review. Iowa Code § 17A.20; Iowa R.App.P. 1(a). In Continental Telephone Co. v. Colton, 348 N.W.2d 623, 625 (Iowa 1984), we stated, "The statute [Iowa Code § 17A.19(8) ] contemplates that a final judgment may provide for remand to the agency for further proceedings." The fact the district court remanded this case to the agency for development of the record and a new determination of the abuse of discretion issue will not bar our review.

I. Power of school board to pay administrator's legal expenses. Bishop challenges the legality of the school board's decision to pay the attorney's fees incurred by Richard Burmeister, the District superintendent, in a proceeding before the Iowa professional teaching practices commission. Bishop argues the agency erred in its construction of Iowa Code section 279.37 (1983), which provides:

A school corporation may employ an attorney to represent the school corporation as necessary for the proper conduct of the legal affairs of the school corporation.

He claims the statute authorizes payment for legal expenses for the defense of the school corporation only, not its administrators. He also argues that doubtful claims of power, such as the one presented here, are to be resolved against the school board.

The BPI asserts rules of statutory construction and prior case law in support of its position that the school board has the authority to pay the attorney's fees incurred by the district superintendent. The BPI urges this court to defer to the agency's interpretation of the statute it administers and to give consideration to the attorney general opinions on the subject. The BPI determined the phrase "as necessary" in section 279.37 created "a strong inference of broad discretion on the part of local boards of directors in making decisions to 'employ an attorney.' "

The only powers of a school district are those expressly granted or necessarily implied in the district's governing statutes. McFarland v. Board of Education of Norwalk Community School District, 277 N.W.2d 901, 906 (Iowa 1979); see Barnett v. Durant Community School District, 249 N.W.2d 626, 627 (Iowa 1977). The express language of Iowa Code section 279.37 allows payment of legal expenses of the school corporation, making no specific mention of school administrators.

In construing section 279.37, we look for guidance in the rules of statutory construction. Iowa Code § 4.6. According to those rules, we should consider the consequences of possible constructions. Iowa Code § 4.6(5). If we construe section 279.37 as Bishop argues, no school official would ever be entitled to payment of his legal fees even though they were incurred as a result of his carrying out his duties for the school district. This would effect a drastic change in our law.

Prior to 1981, section 279.37 provided as follows:

In all cases where actions may be instituted by or against any school officer to enforce any provision of law, the board may employ counsel, for which the school corporation shall be liable.

Iowa Code § 279.37 (1979). Under the language of that statute, we have allowed the payment of legal fees for school officials by a local school board to stand in various circumstances.

In Scott v. Independent District, 91 Iowa 156, 160, 59 N.W. 15, 16 (1894), we stated:

[S]chool directors, in the proper performance of their duties, should be provided with counsel in case of suits brought by or against them, but it was not designed that such officers should have the benefit of this statutory provision when a suit was brought against them by reason of their own corrupt or illegal acts.

The legal fees incurred in the dissolution of a consolidated school district were the focus in Rural Independent School District v. Daly, 201 Iowa 286, 207 N.W. 124 (1926). The district attempted to recover from former school officials the amount expended as legal fees for a challenge to the officials' decision to dissolve the district. Id. at 288-92, 207 N.W. at 125-26. We determined the officials were entitled to legal representation at the expense of the district; therefore, we did not require the former officials to repay the district.

In Cowles v. Independent School District, 204 Iowa 689, 216 N.W. 83 (1927), an attorney was hired by the president and a member of the school board to represent them concerning their actions in an employment dispute. We found the board had the authority to enforce its employment decision in its defense of a suit arising out of that action. Id. at 695-96, 216 N.W. at 85-86. We approved the retention of counsel at school district expense by the president and a school board member after reviewing the purpose of the underlying litigation against them.

A general rule which ties cases in this area of the law together is that legal representation should be provided by the school district to further a proper school purpose, irrespective of whether the school officials are named individually as defendants. See generally Annot., 75 A.L.R.2d 1339, 1345-47 (1961); 68 Am.Jur.2d Schools §§ 17-19 (1973). It is only if the legal representation is for the benefit principally or solely of the individual school board members or school officials that counsel should...