Schloe v. Lead-Deadwood Independent School Dist. No. 106, LEAD-DEADWOOD

• Decision Date: 14 September 1979
• Docket Number: No. 12592,LEAD-DEADWOOD,12592
• Citation: 282 N.W.2d 610
• Parties: Ella SCHLOE, Appellant, v.INDEPENDENT SCHOOL DISTRICT NO. 106, Respondent.
• Court: South Dakota Supreme Court

Page 610

282 N.W.2d 610

Ella SCHLOE, Appellant, v. LEAD-DEADWOOD INDEPENDENT SCHOOL DISTRICT NO. 106 Respondent.

No. 12592.

Supreme Court of South Dakota.

Argued May 14, 1979.

Decided Aug. 22, 1979.

Rehearing Denied Sept. 14, 1979.

Thomas M. Maher, Pierre, for appellant.

A. P. Fuller and Neil Beets, Legal Intern, of Amundson & Fuller, Lead, for respondent.

DUNN, Justice (on reassignment).

This is an appeal from a decision of the Circuit Court of the Eighth Judicial Circuit of Lawrence County, South Dakota, reversing a decision of the Department of Labor (Department) with respect to a grievance filed by appellant Ella Schloe (appellant), a teacher in the Lead-Deadwood Independent School District (District). The District appealed the decision to circuit court, claiming, among other things, that the Department erred in assuming jurisdiction of a grievance that had not been timely filed. Appellant cross-appealed, alleging that the Department erred in refusing to grant salary and benefits beyond the 1976-77 school year. The trial court dismissed the grievance upon a finding that the Department lacked jurisdiction to hear the matter inasmuch as the grievance was not filed within the time limits provided in the District's Grievance Procedure Guide. Due to this dismissal on jurisdictional grounds, the trial court did not consider the adequacy of the Department's findings on the merits of the case or pass upon the alleged inadequacy of the relief sought by appellant in the cross-appeal. We hold that the Department had jurisdiction to hear this grievance, and we reverse and remand the matter to the trial court for further proceedings on the merits.

Appellant was employed as a teacher by the District for the 1975-76 school year. On March 12, 1976, she received a letter indicating the decision of the District's Board of Education (Board) not to renew her teaching contract, and on March 25, 1976, she received a letter confirming that decision.

At the time of appellant's nonrenewal, the District had a Staff Reduction Policy (Policy) in effect that applied to all staff. The Policy provided guidelines to be followed by the District in reducing staff whenever dictated by economic necessity or enrollment factors. The Policy states the order in which staff members must be released and provides that those released shall have their names placed on a recall list. The staff members are to be recalled in inverse order of their release to fill new teaching positions for which they are certified and qualified. The Policy further provides that no new staff members will be employed until all staff members eligible for recall have had an opportunity to accept a new position.

The recall list was prepared under the District's recall policy and posted on April 15, 1976, but appellant's name was not on the list. That very day, appellant personally signed and mailed a letter to the Board and administrative team advising them that it was her understanding that the decision of the Board not to renew her contract was based upon the need to reduce the size of the teaching staff. Her letter goes on to state: "Pursuant to Policy # 4117.1, Staff Reduction Policy, Sections 8, 9, and 10. I hereby request that my name be placed on the recall list and that I receive notice of any vacancy for which I am certified and qualified." This letter was received in evidence as appellant's exhibit 7 without objection. Pursuant to Article V of the Grievance Procedure Guide, appellant promptly followed up her letter by meeting with her immediate supervisor, the school principal, in an effort to resolve the matter informally. The stated purpose of the school grievance procedure was to secure, as soon as possible, at the lowest possible administrative level, equitable solutions to problems which might arise.

Appellant's name was never placed on the recall list. When she received no response to her complaint, she sought the assistance of the Lead-Deadwood Education Association (LDEA). LDEA filed a formal grievance on May 27, 1976, on behalf of appellant, alleging that appellant's name was improperly omitted from the recall list. The relief requested by LDEA on behalf of appellant was an order that her name be retroactively placed on the recall list and that she be given any position for which she was qualified. The Board took no action on the grievance.

In July of 1976, the District conducted interviews to fill the teaching position formerly held by appellant. Appellant interviewed for the position but was not hired. Thereafter, appellant and the LDEA filed a second grievance with the Department, alleging that appellant did not receive the teaching job because she had filed the first grievance. The second grievance, however, is not before us on appeal.

At the hearing before the Department, the District made a special appearance to contest the Department's jurisdiction. Testimony was received on the jurisdictional issue. The Department reserved its ruling thereon, and the hearing proceeded on the merits subject to the District's motion for dismissal based upon lack of jurisdiction.

The Department issued findings of fact and conclusions of law which stated that the Department had jurisdiction in the matter; that appellant performed her teaching duties in a satisfactory manner; that the LDEA filed a grievance on appellant's behalf; that appellant's name should have been on the recall list; and that appellant would have been recalled for the teaching position had her name been on the list. The Department ordered that appellant be awarded damages in an amount equal to a normal teaching salary and benefits for the 1976-77 school year. Where the legislature has created an administrative agency empowered to deal with issues within its expertise, the courts must seek to harmonize their relations with the agency. Gottschalk v. Hegg, 89 S.D. 89, 228 N.W.2d 640 (1975).

The District appealed the Department's decision to the circuit court. Appellant cross-appealed, alleging, in substance, error in the Department's refusal to grant salary and benefits beyond the 1976-77 school year. The circuit court reversed the Department's decision and dismissed the case on the ground that the grievance was not timely filed. ¹ The court found that the grievance dated May 27, 1976, was filed beyond the thirty-day limit for filing of grievances as specified in the District's Grievance Procedure Guide.

Appellant's main contention on appeal is that the circuit court erred in concluding that the grievance was untimely. We agree. In reviewing a circuit court's decision under the Administrative Procedures Act (SDCL 1-26), this court must make the same review of the administrative tribunal's action as does the circuit court. The reviewing court must make its decision as to whether the circuit court's decision can be substantiated unaided by a presumption that the circuit court's decision is correct. Piper v. Neighborhood Youth Corps, 241 N.W.2d 868 (S.D.1976).

The authority of the circuit court in an appeal from an administrative agency is determined by statutory law. Chicago M., St. Paul & P. R. Co. v. Bd. of Com'rs, 248 N.W.2d 386 (S.D.1976). The standard is found in SDCL 1-26-36, ² which reads, in relevant part, as follows:

The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

(2) In excess of the statutory authority of the agency.

The District's Grievance Procedure Guide defines "grievance" as a complaint by a public employee based upon an alleged violation of any existing (written) policy of the school as it applies to the conditions of employment. The Grievance Procedure Guide further provides that no grievance shall be recognized unless presented within thirty days after the aggrieved person knew or should have known of the act or condition upon which the grievance is based, and if not so presented, the grievance will be considered waived. The Grievance Procedure Guide was in effect and applied to appellant at the time the recall list was posted.

If after following the grievance procedure enacted by the governing body the grievance remains unresolved, it may be appealed to the Department, which shall conduct an investigation and hearing and shall issue an order covering the points raised. The order shall be binding on the employee and the governmental agency. SDCL 3-18-15.2.

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