John Joseph Filipelli v. Iowa Racing and Gaming Commission, and Iowa Greyhound Association, Intervenor.
16-0301
Iowa Ct. App.Mar 22, 2017Background
- The Iowa Racing and Gaming Commission (IRGC) approved a March 5, 2015 plan to split a longstanding escrow purse fund roughly half for Bluffs Run purses (based on 2011–2015) and half to the Iowa Greyhound Association (IGA) for Dubuque purses after live racing at Bluffs Run was discontinued by statute. Neither IWRA nor IGA challenged the IRGC decision.
- The escrow fund originated from a 1995 arbitration award between IWRA and IGA establishing a multi-million dollar escrow to supplement future purses; the fund was controlled by IGA and created long before petitioner began racing.
- John Filipelli, a kennel owner who raced at Bluffs Run from 2011–2015 and received some escrow disbursements, sought judicial review under Iowa Code chapter 17A, alleging the IRGC’s distribution was unlawful and caused him a >$60,000 injury.
- IRGC and IGA moved to dismiss for lack of standing; the district court granted dismissal, finding Filipelli lacked a specific personal or legal interest in the prior arbitration awards and had not exhausted administrative remedies or shown adverse effect.
- Filipelli appealed; he also argued on appeal (for the first time) that he was a third-party beneficiary of the 1995 arbitration award, a theory not raised below.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to seek judicial review of IRGC distribution | Filipelli: he has a specific personal interest and was injuriously affected (lost >$60,000) by the transfer | IRGC/IGA: Filipelli lacked a specific personal/legal interest in the arbitration awards, did not exhaust administrative remedies, and was not a party to proceedings that created the escrow | Court affirmed dismissal for lack of standing under Iowa Code §17A.19(1); Filipelli was not a party to underlying proceedings and therefore cannot seek review |
| Causation/redressability where injury arises from regulation of others | Filipelli: IRGC action caused his injury and relief would redress it | IRGC/IGA: any dispute arises from IWRA/IGA arbitration history, not IRGC action; Filipelli’s asserted injury is derivative/speculative | Court did not need to reach causation/redressability because exhaustion/party requirement was dispositive |
| Statutory interpretation of §99D.9A(6) (distribution to kennel owners) | Filipelli: statute requires escrow funds be paid to kennel owners operating when racing ceased | IRGC/IGA: statute simply identifies funds/parties and grants immunity; it does not mandate Filipelli’s proposed distribution | Court agreed with IRGC/IGA: statute does not establish a right for Filipelli and does not save his standing claim |
| Third-party beneficiary status to the 1995 arbitration award | Filipelli (on appeal only): he is a third-party beneficiary of the arbitration establishing the escrow | IRGC/IGA: claim not raised below so not preserved for appeal | Court declined to consider this unpreserved argument; error not preserved for appellate review |
Key Cases Cited
- Godfrey v. State, 752 N.W.2d 413 (Iowa 2008) (standing requires specific personal or legal interest and injurious effect under Iowa APA)
- Alons v. Iowa Dist. Ct., 698 N.W.2d 858 (Iowa 2005) (standing elements summarized for judicial review)
- Citizens for Responsible Choices v. City of Shenandoah, 686 N.W.2d 470 (Iowa 2004) (both standing elements must be satisfied)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (causation and redressability requirements where injury is derivative)
- Hawkeye Foodserv. Distrib., Inc. v. Iowa Educs. Corp., 812 N.W.2d 600 (Iowa 2012) (motion to dismiss standard; accept petition facts as true)
- Southard v. Visa U.S.A. Inc., 734 N.W.2d 192 (Iowa 2007) (dismissal proper only if petition shows no right under any facts)
- Pub. Emp’t Relations Bd. v. Stohr, 279 N.W.2d 286 (Iowa 1979) (parties who did not participate in agency proceedings lack standing to seek review)
- Meier v. Senecaut, 641 N.W.2d 532 (Iowa 2002) (issues must be raised and decided below to be preserved on appeal)
- State v. Pickett, 671 N.W.2d 866 (Iowa 2003) (purpose of error-preservation rules explained)