Chapman v. S.C. Dep't of Soc. Servs., Appellate Case No. 2015-001548

• Court: Court of Appeals of South Carolina
• Citation: 801 S.E.2d 401,420 S.C. 184
• Docket Number: Opinion No. 5482,Appellate Case No. 2015-001548
• Parties: William Henry CHAPMAN, Appellant, v. SOUTH CAROLINA DEPARTMENT OF SOCIAL SERVICES, Respondent.
• Decision Date: 03 May 2017

420 S.C. 184
801 S.E.2d 401

William Henry CHAPMAN, Appellant,
v.
SOUTH CAROLINA DEPARTMENT OF SOCIAL SERVICES, Respondent.

Appellate Case No. 2015-001548
Opinion No. 5482

Court of Appeals of South Carolina.

Heard February 13, 2017
Filed May 3, 2017
Rehearing Denied July 17, 2017

Dwight Christopher Moore, of Moore Law Firm, LLC, of Sumter, for Appellant.

William C. Smith, of Columbia, for Respondent.

SHORT, J.:

420 S.C. 186

William Henry Chapman filed a grievance against his employer, South Carolina Department of Social Services (DSS), alleging his termination was improper. On appeal, he argues the Administrative Law Court (ALC) erred in (1) finding he failed to exhaust his administrative remedies and (2) failing to find DSS was estopped from raising the issue even if he failed to exhaust his administrative remedies. We reverse and remand.

FACTS/PROCEDURAL HISTORY

DSS terminated Chapman from his employment with the Clarendon County Division of DSS by hand-delivered letter dated June 3, 2014. The letter stated, "You may contact the Office of Human Resource Management at (803) ... regarding your possible grievance rights." By separate letter dated June 3, 2014, DSS notified Chapman, "Employees must initiate a grievance within 14 calendar days of the effective day of the grievable action." This letter indicated a copy of DSS Form 1449, a copy of the Employee Grievance and Appeal Form, and a copy of the DSS Human Resources Policy and Procedure Manual, Chapter 6 (the Manual) were included with the letter.

Chapman retained counsel, who responded by letter dated June 12, 2014. The letter stated that pursuant to section 600 of the DSS grievance procedure, Chapman "desire[d] to grieve the termination." Chapman believed this letter was sufficient

420 S.C. 187

to grieve his termination. Between June 12 and June 20, 2014, Chapman learned he needed to file a Form 1449. On June 20, 2014, Chapman's counsel submitted Form 1449 to DSS with an accompanying letter stating, "Please find enclosed the DSS Form 1449[,] which you requested. ..." The Form 1449 included basic information such as name, job title, and address, and other information including the effective date of the grievable action, an explanation, and the relief sought. By letter dated June 25, 2014, DSS notified Chapman his grievance had been assigned to a grievance reviewer and informed him to send relevant documents by July 9, 2014.

801 S.E.2d 403

In a Grievance Decision Form dated July 25, 2014, the Acting State Director of DSS denied Chapman relief, finding, "I uphold the Agency's decision to terminate Mr. Chapman. I have fully reviewed all submitted information prior to rendering this decision." Chapman appealed to the State Human Resources Director (the Director).

By Final Decision dated September 4, 2014, the Director denied Chapman's appeal. Relying on the fourteen-day time limit to initiate grievances pursuant to section 8-17-330 of the South Carolina Code, the Director found Chapman failed to file his grievance within the required time frame. The Director also cited section 603 of the Manual in finding the grievance was not timely filed because the Form 1449 was not filed within fourteen days. The order found because Chapman failed to timely file his grievance, he failed to exhaust his administrative remedies, and the merits of the case were not reviewed. Chapman requested reconsideration, which was denied.

Chapman appealed to the ALC. By order dated June 16, 2015, the ALC affirmed the Director. The ALC rejected Chapman's argument that the June 12, 2014 letter from his counsel should be viewed as a notice of appeal for the purpose of satisfying the requirements of section 8-17-330 of the South Carolina Code. The ALC noted that although section 8-17-330 requires only that a grievance be initiated within fourteen calendar days, it also contains language mandating each agency establish a grievance procedure. Because Chapman had been provided with the Manual, the ALC found he knew or should have known the appropriate form to file. Finally, although the ALC found Chapman's argument persuasive

420 S.C. 188

because "the same information contained in the DSS Form 1449 was included in the notice of appeal from [Chapman's] counsel[,]" the ALC concluded it was bound by the Administrative Procedures Act (APA) to defer to the determination of the agency. The ALC did not rule on Chapman's estoppel argument. This appeal followed.

ISSUES

A. Did the ALC err in finding Chapman's grievance was not timely filed and he consequently failed to exhaust his administrative remedies?

B. Did the ALC err in failing to find DSS was estopped from raising the issue of Chapman's failure to exhaust his administrative remedies?

STANDARD OF REVIEW

"In an appeal from the decision of an administrative agency, the [APA] provides the appropriate standard of review." Original Blue Ribbon Taxi Corp. v. S.C. Dep't of Motor Vehicles , 380 S.C. 600, 604, 670 S.E.2d 674, 676 (Ct. App. 2008). "As to factual issues, judicial review of administrative agency orders is limited to a determination [of] whether the order is supported by substantial evidence." MRI at Belfair, LLC v. S.C. Dep't of Health & Envtl. Control , 379 S.C. 1, 6, 664 S.E.2d 471, 474 (2008). When the issue on review involves a question of law, our standard of review "allows this court to reverse the ALC's decision if it is affected by an error of law." Ackerman v. S.C. Dep't of Corr. , 415 S.C. 412, 417, 782 S.E.2d 757, 760 (Ct. App. 2016). "Statutory interpretation is a question of law." S.C. Coastal Conservation League v. S.C. Dep't of Health & Envtl. Control , 390 S.C. 418, 425, 702 S.E.2d 246, 250 (2010). Unless there is a compelling reason to the contrary, appellate courts "defer to an administrative agency's interpretations with respect to the statutes entrusted to its administration or its own regulations." Kiawah Dev. Partners, II v. S.C. Dep't of Health & Envtl. Control , 411 S.C. 16, 34, 766 S.E.2d 707, 718 (2014).

LAW/ANALYSIS

Chapman argues the ALC erred in finding he did not timely file his grievance. We agree.

420 S.C. 189

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