IOWA INSURANCE INSTITUTE, Iowa Defense Counsel Association, Iowa Self-Insurers’ Association, Property Casualty Insurers Association of America, National Association of Mutual Insurance Companies, and Iowa Association of Business and Industry, Appellants, v. CORE GROUP OF the IOWA ASSOCIATION FOR JUSTICE; Christopher J. Godfrey, Workers’ Compensation Commissioner, Division of Workers’ Compensation; and The Iowa Department of Workforce Development, Appellees.
No. 13-1627
Supreme Court of Iowa
June 12, 2015
Rehearing Denied Aug. 14, 2015
Although the Bakers may disagree with the City‘s interest in providing certain exceptions, the rational basis test allows a City to legislate based on their concerns. The Bakers had the burden to negate every conceivable basis that may support the ordinance. They have failed to do so. Thus, the classifications included in the ordinance do not violate the Equal Protection Clause of the United States Constitution.
E. Attorney‘s Fees. In addition to claiming the City is liable under
VI. Conclusion and Disposition.
We find the district court did not abuse its discretion when it allowed the plaintiffs to amend their petition. We also find the City did not violate the Bakers’ constitutional rights, and therefore, the City is not subject to liability under
AFFIRMED.
Joseph A. Happe, Stephen M. Morain, Elizabeth R. Meyer, and Sarah K. Franklin of Davis, Brown, Koehn, Shors & Roberts, P.C., Des Moines, for appellants.
R. Saffin Parrish-Sams of Soldat & Parrish-Sams, PLC, West Des Moines, for appellees.
In this case we are asked to determine whether the workers’ compensation commissioner correctly interpreted
We decline to address a number of follow-on questions related to the work product doctrine in Iowa; our present holding is simply that
I. Background Facts and Proceedings.
Under the Iowa Administrative Procedure Act (IAPA), “Any person may petition an agency for a declaratory order as to the applicability to specified circumstances of a statute, rule, or order within the primary jurisdiction of the agency.”
Core Group asked the commissioner to answer ten related questions:
- Is
Iowa Code § 85.27(2) applicable to surveillance in workers’ compensation claims? - Pursuant to
Iowa Code § 85.27 , are all privileges waived with respect to surveillance videos and photographs showing the injured worker? - Pursuant to
Iowa Code § 85.27 , are all privileges waived with respect to surveillance reports concerning the injured worker? - Pursuant to
Iowa Code § 85.27 , are Defendants required to produce surveillance videos, photos, and/or reports when asked for in appropriate discovery requests? - Pursuant to
Iowa Code § 85.27 , are Defendants permitted to withhold surveillance videos, photos, and/or reports until after deposing the injured worker? - Pursuant to
Iowa Code § 85.27 , when are Defendants required to produce surveillance videos, photos and/or reports? - Pursuant to
Iowa Code § 85.27 , if the information is requested in an interrogatory, is there any privilege against or valid objection to identifying the fact that surveillance was performed, the form of surveillance conducted, who performed it, when it was performed, and who has possession of it? - Pursuant to
Iowa Code § 85.27 , if the information is requested in an interrogatory, when must Defendants identify the fact surveillance was performed, the form of surveillance conducted, who performed it, when it was performed, and who has possession of it? - In the event that [questions “a” or “b“] are answered “NO,” if Defendants assert a privilege in response to a request for production of surveillance, are they also required to provide a privilege log under
Iowa Rule of Civil Procedure 1.503(5) which identifies the fact surveillance was performed, the form of surveillance conducted, who performed it, when it was performed, and who has possession of it? - Pursuant to
Iowa Code § 85.27 , can an injured worker move to compel production of surveillance videos, photos and/or reports, and for appropriate sanc-tions, under Iowa Rule of Civil Procedure 1.517 ?
Core Group further provided its proposed answers to these questions:
Desiring input from multiple organizations representing various interests in workers’ compensation proceedings, the commissioner invited interested parties to intervene. See generally
On June 26, the commissioner held a hearing on the petition for declaratory order. At the hearing, Core Group asserted
On October 23, the commissioner ruled on the petition for declaratory order. The commissioner concluded
The ruling relied on a literal interpretation of the phrase “all information” in rejecting the Institute‘s assertion that
The commissioner‘s ruling addressed questions (a) through (h) and (j) presented by Core Group and was based entirely on the commissioner‘s interpretation of
The Institute sought judicial review in the district court. See generally
The Institute appealed, and we transferred the case to the court of appeals. The court of appeals likewise affirmed the commissioner‘s declaratory order, with one member of the panel dissenting. The Institute sought, and we granted, further review.
II. Standard of Review.
We must resolve three questions: (1) whether
We also review the commissioner‘s actual interpretation of
III. Analysis.
A. The Commissioner‘s Decision to Rule on Core Group‘s Petition. We first address the Institute‘s contention that the commissioner should not have issued a declaratory order for either of the two reasons set forth in
The original version of
Professor Arthur Bonfield, the reporter-draftsperson for the 1998 amendments, provided the following explanation regard-
This section repeals the declaratory order provision contained in current IAPA section 17A.9. Iowa law has not previously required that an agency issue a ruling, and has not contemplated indispensable parties in the declaratory order proceeding. Under this proposed provision, however, an agency is required to issue a declaratory order unless (i) such an order is contrary to a rule properly adopted by the agency in accordance with subsection (2), or (ii) such an order substantially prejudices the rights of any person who would be an indispensable party to the proceeding and who has not consented in writing to a determination of the matter by a declaratory order. In the first case, the rule adopted by the agency must delineate the circumstances in which a declaratory order will not be issued. In the second case, note that some indispensable parties might refuse to consent because, in a declaratory or-der proceeding, they lack many of the procedural rights to which they are entitled in a contested case proceeding.
Arthur Earl Bonfield, Amendments to Iowa Administrative Procedure Act, Report on Selected Provisions to Iowa State Bar Association and Iowa State Government 37 (1998) (hereafter Bonfield).4
1. Whether a necessary party would be substantially prejudiced. The Institute asserts numerous employers and insurers did not participate in the declaratory order proceedings but should be deemed necessary parties. See
Ultimately, we conclude that even if some necessary parties did not participate in the declaratory order proceedings, the commissioner‘s decision to rule did not substantially prejudice them. According to its own petition for intervention, the Institute “collectively represent[s] the majority of workers’ compensation Defendants in Iowa, and many of their legal advocates.” In the same petition, though, the Institute stated that it did “not have authority to bind [its] members to the determination of the matters presented in this declaratory order proceeding.” See
This tightrope walk by the Institute demonstrates to us that the requirements of
2. Agency rules. Pursuant to the mandate in
Subsection (2) allows the commissioner to refuse to rule if he or she concludes “[t]he petition does not contain facts sufficient to demonstrate that the petitioner will be aggrieved or adversely affected” if the commissioner does not issue an order.
The Institute asserts the “aggrieved or adversely affected” standard under subsection (2) is tantamount to a requirement that Core Group demonstrate standing. See
The commissioner‘s rules are discretionary; they provide that the commissioner “may refuse to issue a declaratory order ... for the following reasons.”
Next, the Institute contends the commissioner should have declined to rule because, under subsection (5), “[t]he questions presented by the petition would more properly be resolved in a different type of proceeding“—specifically, either a contested case proceeding or a rulemaking proceeding. See
The legislature has granted agencies multifaceted authority. Agencies assert their authority in a quasi-judicial way when deciding contested cases; and beyond the realm of contested cases, agencies utilize the authority vested in them by the legislature when they promulgate rules and rule on petitions for declaratory orders. Compare
Lastly, the Institute contends that the commissioner should not have ruled on Core Group‘s petition because it had the effect of “necessarily determin[ing] the legal rights, duties, or responsibilities of other persons ... whose position on the questions presented may fairly be presumed to be adverse to that of petitioner.”
B. Whether
Any employee, employer or insurance carrier making or defending a claim for benefits agrees to the release of all information to which the employee, employer, or carrier has access concerning the employee‘s physical or mental condition relative to the claim and further waives any privilege for the release of the information. The information shall be made available to any party or the party‘s representative upon request. Any institution or person releasing the information to a party or the party‘s representative shall not be liable criminally or for civil damages by reason of the release of the information. If release of information is refused the party requesting the information may apply to the workers’ compensation commissioner for relief. The information requested shall be submitted to the workers’ compensation commissioner who shall determine the relevance and materiality of the information to the claim and enter an order accordingly.
Core Group contends that the phrase “all information ... concerning the employee‘s physical or mental condition relative to the claim” means the legislature intended the section to apply to surveillance footage, photographs, and reports. Core Group further contends that the reference to “waives any privilege” includes waiver of the work product protection and that the relevant surveillance materials must be disclosed before deposing the claimant in a given case. The Institute, on the other hand, contends the section should be interpreted more narrowly to apply only to health care provider records.
Like its federal counterpart,
Iowa Rule of Civil Procedure 1.503(3) provides for production of “documents and tangible things” that have been “prepared in anticipation of litigation” by opposing counsel “only upon a showing that the party seeking discovery has substantial need of the materials ... and ... is unable without undue hardship to obtain the substantial equivalent of the materials by other means.” This rule requires the court, however, to “protect against disclosure of the mental impressions, conclusions, opinions, or legal theories of an attorney” when ordering such discovery.
Keefe, 774 N.W.2d at 673 (alteration in original) (quoting
There are “two tiers of work product recognized by
To constitute work product, something must be (1) a document or tangible thing, (2) prepared in anticipation of litigation, and (3) prepared by or for another party or by or for that party‘s representative. See
It is clear that surveillance materials are documents or tangible things, prepared in anticipation of litigation, by or for another party or that party‘s representative. We therefore agree with the prevailing view in jurisdictions following the federal definition of work product that surveillance materials are protected, lower-tier materials, at least initially. See Wegner v. Cliff Viessman, Inc., 153 F.R.D. 154, 159 (N.D. Iowa 1994) (“Surveillance materials are certainly prepared in anticipation of litigation.“); Huet v. Tromp, 912 So. 2d 336, 339 (Fla. Dist. Ct. App. 2005) (“Clearly any documents, reports or video tapes prepared by the investigators are now protected by the work product privilege.“); Pioneer Lumber, Inc. v. Bartels, 673 N.E.2d 12, 17 (Ind. Ct. App. 1996) (“[I]t seems needless to record the activities of the claimant unless it is anticipated that those recordings will be used against the claimant during litigation.“); Cabral v. Arruda, 556 A.2d 47, 49 (R.I. 1989) (holding that surveillance material is “work product” that is “qualifiedly immune from discovery“); In re Weeks Marine, 31 S.W.3d 389, 391 (Tex. App. 2000) (“[T]he surveillance report that includes photographs of Martinez and the video tape are privileged as work product.“). But see Shields v. Burlington N. & Santa Fe Ry., 353 Ill. App. 3d 506, 288 Ill. Dec. 916, 818 N.E.2d 851, 855 (2004) (finding that surveillance is not work product under the Illinois definition, which differs from the federal definition and does not offer protection to materials that do not reveal “any mental processes or other such conceptual data“); Moak v. Ill. Cent. R.R., 631 So. 2d 401, 404 (La. 1994) (finding that surveillance is not work product under Louisiana law because Louisiana‘s work product exclusion refers only to “writing” and not to other tangible things like videos or photographs); Dominick v. Hanson, 753 A.2d 824, 826 (Pa. Super. Ct. 2000) (“Although this evidence constitutes work product because it is prepared solely in anticipation of litigation, [Pennsylvania Rule of Civil Procedure] 4003.3 provides that work product is discoverable, with the exception of the mental impressions and opinions of the party‘s attorney and other representatives.“).
The consensus also seems to be that surveillance loses the status of protected work product once a determination is made that the surveillance will be used at trial. Donovan v. AXA Equitable Life Ins. Co., 252 F.R.D. 82, 82 (D. Mass. 2008) (finding that surveillance, if it will be used at trial, must be produced in discovery once the plaintiff has been deposed); Dodson v. Persell, 390 So. 2d 704, 707-08 (Fla. 1980) (finding the contents of surveillance films and materials are subject to discovery where they are to be presented at trial but that allowing the discovery deposition before disclosure “is an appropriate middle road to ensure that all relevant evidence reaches the trier of fact in a fair and accurate fashion“); see also Wegner, 153 F.R.D. at 159 (finding a substantial need exists for production when the materials will be used against the plaintiff at trial); Pioneer Lumber, 673 N.E.2d at 17 (“Bartels has a substantial need for the tape only if Pioneer and Wiesemann intend to present it at trial.“); Cabral, 556 A.2d at 50 (holding that a substantial need exists for production of surveillance once a decision is made to use it at trial, but the surveillance can be withheld until after deposition).
2. Is
““A statute is ambiguous if reasonable minds could differ or be uncertain as to the meaning of the statute.‘“” Mall Real Estate, L.L.C. v. City of Hamburg, 818 N.W.2d 190, 198 (Iowa 2012) (quoting Sherwin-Williams Co. v. Iowa Dep‘t of Revenue, 789 N.W.2d 417, 424 (Iowa 2010)). We have said that “[a]mbi-guity may arise from specific language used in a statute or when the provision at issue is considered in the context of the entire statute or related statutes.” Id. at 425. In other words, even if the meaning of words might seem clear on their face, their context can create ambiguity.
That is because we read statutes as a whole rather than looking at words and phrases in isolation. See, e.g., Phillips v. Chi. Cent. & Pac. R.R., 853 N.W.2d 636, 649 (Iowa 2014) (noting that statutory terms are often “clarified by the remainder of the statutory scheme” (internal quotation marks omitted)); Den Hartog v. City of Waterloo, 847 N.W.2d 459, 462 (Iowa 2014) (“We have often explained we construe statutory phrases not by assessing solely words and phrases in isolation, but instead by incorporating considerations of the structure and purpose of the statute in its entirety.“); In re Estate of Melby, 841 N.W.2d 867, 879 (Iowa 2014) (“When construing statutes, we assess not just isolated words and phrases, but statutes in their entirety....“); see also
As we examine
1. The employer, for all injuries compensable under this chapter or chapter 85A, shall furnish reasonable surgical, medical, dental, osteopathic, chiropractic, podiatric, physical rehabilitation, nursing, ambulance and hospital services and supplies therefor and shall allow reasonably necessary transportation expenses incurred for such services. The employer shall also furnish reasonable and necessary crutches, artificial members and appliances but shall not be required to furnish more than one set of permanent prosthetic devices.
Thus, when the legislature adopted subsection (2) in 1976, it stuck it within an existing provision (section 85.27) that concerned health care services. This would be an unusual place to situate a provision intended to override the litigation work product doctrine. It also tends to support the Institute‘s view that
Hence, after considering both the wording of
3. Other language in section 85.27(2) itself. In addition to considering section 85.27 as a whole, we must of course focus on the wording of
Core Group justifiably attaches significance to the words “all information.” See
Yet in some cases, we have concluded the word “all” means something short of all-inclusive. See, e.g., In re Estate of Troester, 331 N.W.2d 123, 126 (Iowa 1983) (“To interpret literally the words ‘all or-ders’ ... to apply to all procedural orders would lead to a[n] undesired result.“); Johnson v. Bd. of Adjustment, 239 N.W.2d 873, 880-81 (Iowa 1976) (concluding the words “all uses” in a zoning ordinance did not mean every lot was required to satisfy a minimum acreage requirement); Silver Lake Consol. Sch. Dist. v. Parker, 238 Iowa 984, 997, 29 N.W.2d 214, 221 (1947) (holding “the word ‘all’ in various parts of the school laws” applied only to all public schools); In re Licenses for Sale of Used Motor Vehicles, 179 N.W. 609, 611 (Iowa 1920) (concluding the words “all vehicles” did not include all used vehicles). In short, our precedents do not foreclose us from looking at the word “all” contextually.
The Institute emphasizes other aspects of the wording of
As Core Group notes, there are cases where we have used the word “privilege” to refer to the work product immunity. See, e.g., Wells Dairy, 690 N.W.2d at 43 (“Iowa Rule of Civil Procedure 1.503(3) creates a qualified privilege....“); Exotica Botanicals, Inc. v. Terra Int‘l, Inc., 612 N.W.2d 801, 804-05, 807 (Iowa 2000) (using “work product privilege” in three section headings and referring multiple times to the work product privilege).
However, our occasional lack of precision does not necessarily mean the legislature was being imprecise when it adopted
In interpreting
Additionally, as the Institute observes,
4. Presumption against superfluous words. Another principle of statutory interpretation is that “[w]e presume statutes or rules do not contain superfluous words.” State v. McKinley, 860 N.W.2d 874, 882 (Iowa 2015); see also
This argument is not without force, but it should not be overstated. Employers and insurers could have access to medical records that the employee does not have. Thus, it was necessary to include them in
Any employee, employer or insurance carrier making or defending a claim for benefits agrees to the release of all information to which the employee, employer, or carrier has access concerning the employee‘s physical or mental condition relative to the claim and further [any employee] waives any privilege for the release of the information.
When one reads this longer, less readable version, it suggests an alternative explanation for why the legislature wrote the law the way it did: The legislature may have simply opted for cleaner, more abbreviated language. Under this view, although the wording of the last clause sweeps somewhat more broadly than necessary, the breadth does not change the substantive meaning of the statute, but merely reinforces that employers and insurers need to produce the records.
5. Avoiding absurd results. We have long recognized that statutes should not be interpreted in a manner that leads to absurd results. See
Applying this principle in the case at hand reveals a problem with Core Group‘s reading of the statute. If “all information” means all information and not merely, in context, all health care provider information, Core Group‘s interpretation would eliminate all privileges and protections—e.g., work product, attorney work product, attorney-client, priest-penitent—to the extent the item refers to the employee‘s physical condition. We believe that is an absurd result that could not have been intended by the legislature.
In fact, the commissioner‘s declaratory order implicitly recognizes the absurdity of such a result. On page 7 of his order, the commissioner states “that the mental impressions, conclusions, opinions, or legal theories of an attorney or other representative of a party concerning the litigation are not waived by Iowa Code section 85.27(2).” While we understand the impulse to carve out and preserve upper-tier work product, the declaratory order fails to explain what in
6. Legislative history. In construing an ambiguous statute, the court may consider “[t]he circumstances under which the statute was enacted” and “[t]he legislative history.” See
“[W]e give weight to explanations attached to bills as indications of legislative intent.” Star Equipment, Ltd. v. State, 843 N.W.2d 446, 454 (Iowa 2014) (internal quotation marks omitted); see also Postell v. Am. Family Mut. Ins. Co., 823 N.W.2d 35, 49 (Iowa 2012) (same). We have recently explained the relevance of legislative explanations:
The legislature enacts the bill—not the accompanying explanation. But, the internal rules governing the general assembly require the title and explanation to be accurate. An explanation or title included when a bill is introduced may become irrelevant when the text of the bill is materially changed by subsequent amendments. But, when the explanation accompanies the text of the bill enacted without a relevant substantive change, the explanation is part of the legislative history that can be examined in our efforts to determine the meaning of the text.
Star Equipment, 843 N.W.2d at 454 n. 3 (citations omitted).
Surveillance for litigation purposes would not normally be classified as information concerning a person‘s “past” physical or mental condition. Rather, it is typically conducted after a claim has been brought. This tends to support the Institute‘s proposed interpretation of
Of course, there is the truism that once information like surveillance has been gathered, it always relates to the “past.” But such a reading of the explanation would render the word “past” redundant to the word “information.” A more logical reading of the explanation is that the word “past” refers to information that had been obtained before the claim was filed. Ensuring the exchange of prior health care records appears to have been the legisla-
7. Prior administrative interpretations. The commissioner‘s declaratory order also appears to be inconsistent with long-held administrative views of the agency. See Ramirez v. Riverview Care Ctr., Iowa Workers’ Comp. Comm‘n Nos. 1243830, 1253740, 1253741, 1253742, 1253743, 2002 WL 32125248, at *2 (May 15, 2002) (“Under the prevailing rule, surveillance materials may be withheld as privileged work product for a reasonable time until the party observed can be deposed or otherwise compelled to take a position on the facts pertinent to the surveillance. They may not be withheld after the 30-day case preparation deadline in the hearing assignment order.” (Citations omitted.)); Hansen v. Graham Constr., Iowa Workers’ Comp. Comm‘n No. 1171846, 2000 WL 33992554, at *8 (Sept. 29, 2000) (“[D]efendants, upon a proper discovery request, are to provide to claimant the results of any surveillance conducted but may postpone doing so until claimant has been deposed.“); Hoover v. Iowa Dep‘t of Agric., Iowa Workers’ Comp. Comm‘n No. 529205, 1993 WL 13021598, at *4 (Jan. 28, 1993) (approving defendants’ withholding of surveillance material from disclosure in discovery until after the claimant‘s deposition “to protect the impeachment value of the evidence until after claimant‘s deposition, where sufficient time remained before hearing for claimant to avoid prejudice by examining the evidence and cross-examining the surveillance witnesses“).
“Longstanding administrative interpretations are entitled to some weight in statutory construction.” Griffin Pipe Prods. Co. v. Bd. of Review, 789 N.W.2d 769, 775 (Iowa 2010). It is true, as we have already said, that we must interpret
8. The rule in other jurisdictions. Although we have not found another jurisdiction with a statute that resembles
ments dated May 18, 2015) (“A party is not required to provide or exhibit electronic information, including surveillance tapes, to another party prior to the other party‘s testimony under oath.“).
Missouri is the only state clearly to take a contrary approach. It requires predeposition disclosure of surveillance in workers’ compensation proceedings but on the rationale that this is a “statement” by the claimant and, therefore, discovery provisions allowing a person to obtain his or her own statement apply. See, e.g., State ex rel. Feltz v. Bob Sight Ford, Inc., 341 S.W.3d 863, 866-68 (Mo.Ct.App.2011). Respectfully, we do not agree that an employee engaging (or not engaging) in physical activity for its own sake is making a “statement.” See
This center of gravity in the authorities suggests, at a minimum, that allowing an employer or an employer‘s attorney to withhold surveillance until after the employee‘s deposition does not undermine the policies behind workers’ compensation. Notably, the foregoing jurisdictions, like Iowa, place a high value on getting benefits in the hands of injured workers. See Ex parte Lumbermen‘s Underwriting Alliance, 662 So.2d 1133, 1137 n. 3 (Ala.1995) (referring to “the public policy behind the adoption of workers’ compensation acts—to provide necessary day-to-day financial support to an injured worker and the worker‘s dependents“); Pietraroia v. Ne. Utils., 254 Conn. 60, 756 A.2d 845, 854 (2000) (noting that the workers’ compensation act “is remedial and must be interpreted liberally to achieve its humanitarian purposes” (internal quotation marks omit
Iowa‘s underlying workers’ compensation goals are not unique. Other jurisdictions have found those goals can be met while allowing surveillance to be withheld until the claimant is deposed.
9. Policy considerations. Finally, both sides to this proceeding argue that sound policy is on their side. Core Group urges that immediate disclosure of surveillance materials should occur because the workers’ compensation system “is designed to be essentially nonadversarial. Whatever its faults, real or imagined, the system presupposes that all workers will benefit more if claims are processed routinely and paid quickly.” Morrison v. Century Eng‘g, 434 N.W.2d 874, 877 (Iowa 1989). Core Group contends that the workers’ compensation is a system where the parties should put their cards on the table as early as possible so that, if possible, the claim can be resolved quickly. Also, surveillance can still have impeachment value, even if the deponent has seen it beforehand.
The Institute responds that the fundamental purpose of the workers’ compensation statute is “to benefit the injured workers,” see Jacobson Transp. Co. v. Harris, 778 N.W.2d 192, 197 (Iowa 2010), and putting the worker under oath before he or she has seen any surveillance helps one determine whether the worker is injured as claimed. According to the Institute, truly injured workers—the intended beneficiaries of workers’ compensation law—do not need to see surveillance of themselves before they testify under oath in a deposition. It is those who testify falsely about physical limitations who get impeached effectively by video recordings they have not seen. Trial lawyers are taught at an early age not to show their impeachment material to a witness and ask him or her to “explain” it, but to get the witness to commit to a story before revealing the impeachment evidence. This is viewed as an effective way to expose the witness who is not telling the truth.
Certainly, in the workers’ compensation field, assessing the claimant‘s credibility is vitally important. Many claimants suffer from workplace-related impairments that are more serious than the purely objective medical findings might indicate. They deserve to be compensated. On the other hand, some claimants exaggerate their symptoms.
In sum, there are valid policy reasons for and against requiring predeposition disclosure of surveillance in workers’ compensation claims.
10. Conclusion. Reasonable arguments can be made for and against the commissioner‘s interpretation of
Most importantly, the commissioner‘s interpretation has no limiting principle. If all means all, then even an attorney-client privileged email from a claimant to her attorney discussing her impairment would have to be produced—an outcome that even the commissioner is unwilling to countenance. Hence, we find the declaratory order erroneously determined that
C. Other Issues. The commissioner‘s declaratory order, as we have noted, was limited to
In an actual workers’ compensation proceeding, a determination that
IV. Conclusion.
The commissioner did not err or abuse his discretion in ruling on Core Group‘s petition for declaratory order. However, we conclude the commissioner erroneously interpreted
DECISION OF COURT OF APPEALS VACATED; DISTRICT COURT JUDGMENT REVERSED AND CASE REMANDED.
All justices concur except HECHT, J., who concurs in part and dissents in part, and ZAGER, J., who takes no part.
HECHT, Justice (concurring in part and dissenting in part).
I agree with the majority on the procedural question, but disagree on the substantive one. In my view, the majority has overlooked the nuances attending Core Group‘s petition and the important differences between workers’ compensation cases and general civil litigation. Because I find the majority‘s reasoning unpersuasive, I respectfully dissent in part.
The majority relies on rules of statutory interpretation to interpret
I. Whether Section 85.27(2) Applies to Surveillance Materials.
The majority concludes the phrase “all information” in
I would not read implied limitations into
The decisions of this court have given the word “all” a very broad meaning. See, e.g., Luttenegger v. Conseco Fin. Servicing Corp., 671 N.W.2d 425, 434 (Iowa 2003); Barron v. State Farm Mut. Auto. Ins. Co., 540 N.W.2d 423, 426 (Iowa 1995); In re Peers’ Estate, 234 Iowa 403, 411, 12 N.W.2d 894, 898 (1944); Grimes v. Nw. Legion of Honor, 97 Iowa 315, 324, 64 N.W. 806, 808 (1895) (“[T]he legislature, by the use of the words ‘all insurance companies or associations,’ intended to cover every form of insurance.“); State v. Hutchison, 72 Iowa 561, 562–63, 34 N.W. 421, 421 (1887) (concluding a statutory prohibition against “all intoxicating liquors whatever” included alcoholic cider manufactured from apples). I would again give the word a broad meaning in this case.
I find our decision in Consolidated Freightways instructive. See Consol. Freightways Corp., 258 Iowa at 121, 137 N.W.2d at 904. There we concluded the plain meaning of the word “all” rebutted a contention “that the words ‘all states’ and ‘total fleet miles’ refer to ‘all apportioning states’ and to ‘total fleet miles in apportioning states.‘” Id. I similarly reject the majority‘s conclusion that in the context of
I acknowledge that in some cases we have concluded the word “all” meant something short of all-inclusive. See, e.g., In re Estate of Troester, 331 N.W.2d 123, 126 (Iowa 1983); Johnson v. Bd. of Adjustment, 239 N.W.2d 873, 880-81 (Iowa 1976); Silver Lake Consol. Sch. Dist. v. Parker, 238 Iowa 984, 997, 29 N.W.2d 214, 221 (1947); In re Licenses for Sale of Used Motor Vehicles, 179 N.W. 609, 611 (Iowa 1920). The majority concludes these cases are a sufficient counterweight to the truism that all means all. Notably, however, none of these cases in which we concluded the word “all” meant something less than all-inclusive presented a question requiring interpretation of our workers’ compensation statute.
When deciding workers’ compensation issues, this court has consistently refused to read terms into
Despite the indisputably broad language in
I also find unpersuasive the majority‘s conclusion that the commissioner‘s interpretation of
The majority‘s assertion that the commissioner‘s interpretation of
I also dispute that the bill book explanation of the statute in 1976 referring to “past physical or mental condition” sup
Furthermore, the majority‘s reliance on the 1976 legislative explanation ignores well-established principles of statutory interpretation: We determine legislative intent “by what the legislature said, rather than than what it should or might have said.”
There is yet another problem with the majority‘s interpretation of
The majority dismisses this point by suggesting the legislature really meant to impose the waiver under
II. Whether Section 85.27(2) Waives Work Product Protection.
The majority concludes
A. Limited Scope of Inquiry. I do not dispute that there are “two tiers of work product recognized by
B. Immunity Versus Privilege. The majority concludes
In a general sense, both “privilege” and “immunity” concepts place the burden of proof on the party asserting protection. See Anderson v. State, 692 N.W.2d 360, 364 (Iowa 2005) (discretionary function immunity); AgriVest P‘ship v. Cent. Iowa Prod. Credit Ass‘n, 373 N.W.2d 479, 482 (Iowa 1985) (“One resisting discovery through assertion of a privilege has the burden to show the privilege exists and applies.“). But, once established, an immunity leads courts to only one possible conclusion, while a privilege does not. In other words, an opposing party cannot override a claim of immunity based upon their substantial need for information or other ground; they can only assert the immunity does not apply. But an opponent can override an adversary‘s claim of privilege with a proper showing. See, e.g., In re A.M., 856 N.W.2d 365, 373 (Iowa 2014) (applying a statutory exception to the psychotherapist-patient privilege); 9
The framework of
I acknowledge that work product materials including surveillance are often in the possession of attorneys rather than the employers and insurance carriers they represent. The majority concludes clients cannot unilaterally waive the work product doctrine as to materials in their attorneys’ possession. Yet, the waiver under
III. Timing of Disclosure.
Previous agency decisions had concluded that postponing disclosure until after the claimant‘s deposition preserved impeachment value. However, agency decisions interpreting the law are not binding on this court. Keystone Nursing Care Ctr. v. Craddock, 705 N.W.2d 299, 304 n. 2 (Iowa 2005) (“[T]he commissioner‘s final decision is judged against the backdrop of the workers’ compensation statute and the Iowa appellate cases interpreting it, not previous agency decisions.“). And until today, we had not confronted a case presenting the temporal question at issue here.
Surveillance materials undoubtedly have some impeachment value. See Snead v. Am. Export-Isbrandtsen Lines, Inc., 59 F.R.D. 148, 150 n. 1 (E.D.Pa.1973) (“It is in the best interests of society that valid claims be ascertained and fabricated claims be exposed.“). However, “surveillance footage ... is hardly a smoking gun,” even when it depicts a claimant “performing tasks inconsistent with the claimed disability.” Cedar Rapids Cmty. Sch. Dist. v. Pease, 807 N.W.2d 839, 848-49 (Iowa 2011).
Two Louisiana cases illustrate the important competing interests at stake in determining whether predeposition disclo-
While ... surprise may have a healthy prophylactic effect against possible perjury, it is more likely that the adversarial process will function efficiently and cases will be decided fairly on the merits if the parties are aware of all the evidence. Furthermore, discovery of surveillance materials permits the kind of stipulations and admissions required for effective pre-trial procedures. It also encourages settlement or abandonment of less than meritorious claims.
Id. at 405 (citation omitted) (internal quotation marks omitted).
Several years later, the Louisiana Supreme Court distinguished Moak. Wolford v. JoEllen Smith Psychiatric Hosp., 693 So.2d 1164, 1166-67 (La.1997). The court concluded the unique impeachment value of surveillance justifies a per se rule preventing disclosure before the plaintiff‘s deposition. See id. at 1167. The court explained:
Surveillance videotape picturing the plaintiff engaged in physical activity has the potential to reveal inconsistencies between the plaintiff‘s claimed injuries and resulting limitations and the plaintiff‘s actual abilities. However, any potential impeachment value would be destroyed by ordering pre-deposition disclosure of such surveillance materials. If the plaintiff were to view the surveillance videotape prior to being deposed as to his physical injuries and limitations during the time period pictured in the videotape, he would be more likely, either inadvertently or deliberately, to tailor his testimony to correspond with the actions pictured in the videotape.... [D]elaying the production of the videotape until after the plaintiff has been fully deposed aids in the search for the truth.
Id.
The majority relies on many other cases that essentially utilize the Wolford rule (or something like it) and allow defendants to withhold surveillance materials until after deposing the plaintiff. See, e.g., Smith v. Diamond Offshore Drilling, Inc., 168 F.R.D. 582, 587 (S.D.Tex.1996); Boyle v. CSX Transp., Inc., 142 F.R.D. 435, 437 (S.D.W.Va.1992); Dodson v. Persell, 390 So.2d 704, 708 (Fla.1980). But these cases constituting what the majority characterizes as a consensus are not persuasive here for several significant reasons.
First, not all courts prioritize impeachment value over “the free flow of information.” See Morrison, 434 N.W.2d at 876. For example, one New York court stated:
Although it is possible that a plaintiff will attempt to tailor his or her testimony after learning what the surveillance films reveal, it seems unlikely that he or she would risk going to trial knowing that the films are accurate.... We believe it is more likely that disclosure will result in a settlement, or possibly a voluntary discontinuance of the lawsuit, in either case avoiding costly and time consuming litigation.
Kane v. Her-Pet Refrigeration, Inc., 181 A.D.2d 257, 587 N.Y.S.2d 339, 344 (1992); see also Wegner v. Cliff Viessman, Inc., 153 F.R.D. 154, 159–60 (N.D.Iowa 1994) (“[R]equiring discovery of surveillance by defendants ... will not jeopardize the ability of defendants to impeach plaintiffs.“); Shields v. Burlington N. & Santa Fe Ry., 353 Ill.App.3d 506,
Second, surveillance materials sometimes are not fairly described as a smoking gun. See Pease, 807 N.W.2d at 848. In a personal injury case, the New Jersey Supreme Court addressed and rejected an assertion that requiring disclosure of surveillance materials would render them toothless for impeachment purposes:
[D]efendants’ position suffers from an obvious analytical weakness: it is based on the premise that defendants’ evidence (in the form of the undercover films) is the exclusive repository of truth and virtue and its disclosure ... will deprive them of the opportunity to demonstrate ... the fraud plaintiff seeks to work upon them. While defendants do not state that assumption quite so bluntly, their argument rests upon it at least implicitly. The premise is one we can hardly indulge. It is no more unlikely that a defendant may resort to chicanery in fabricating motion pictures of one alleged to be the plaintiff than it is that a plaintiff may indeed be a faker.
Jenkins v. Rainner, 69 N.J. 50, 350 A.2d 473, 476-77 (1976); see also Boyle, 142 F.R.D. at 437 (“[I]t hose surveilled may be tempted to alter the truth, but ... those conducting the surveillance may be subject to the same temptation....“); Snead, 59 F.R.D. at 150 (questioning the purportedly unassailable nature of surveillance materials because “[a]n emergency situation may be made to appear commonplace” and a one-time event can be made to appear recurring); Orgeron v. Tri-State Road Boring, Inc., 434 So.2d 65, 68 (La.1983) (“[P]ictures or videotapes must be approached with great caution because they show only intervals of the activities of the subject, they do not show rest periods, and do not reflect whether the subject is suffering pain....“). 10
Furthermore, as the Core Group suggests, in some instances surveillance information has no impeachment value whatsoever because it is probative of the physical impairment claimed by an injured employee. And even when surveillance information does have impeachment value, “if [it is] at all effective will [it] not also be substantive evidence going directly to ... injuries and damages?” Spencer v. Beverly, 307 So.2d 461, 462 (Fla.Dist.Ct.App.1975) (Downey, J., specially concurring). Whether or not such information has impeachment value, it is in my view probative of a claimant‘s physical or mental condition and the commissioner therefore correctly declared it should be released under
But most importantly, as I have already noted, cases adjudicating discovery disputes between plaintiffs and defendants engaged in civil litigation are qualitatively
The commissioner‘s interpretation of
Some other states utilize different procedures. See, e.g., Ex parte Doster Constr. Co., 772 So.2d 447, 451 (Ala.2000); Congleton v. Shellfish Culture, Inc., 807 So.2d 492, 495-96 (Miss.Ct.App.2002); De Marco v. Millbrook Equestrian Ctr., 287 A.D.2d 916, 732 N.Y.S.2d 121, 122 (2001). However, none of these states’ workers’ compensation schemes features any statute or rule resembling
IV. Fact of Surveillance.
One final question remains: whether the fact that surveillance exists—along with other factual details such as dates of surveillance and the form it takes—is itself protected from disclosure. The majority declines to answer this question. I conclude the fact of surveillance is not protected from disclosure, and neither are related factual details.
The caselaw reveals two competing views on this issue in the personal injury context. A decision of the Wisconsin Court of Appeals succinctly describes the position the Institute espouses here:
A lawyer‘s strategic decision to invest a client‘s resources on photographic or video surveillance is protected work-product. The decision not only reflects the lawyer‘s evaluation of the strengths or weaknesses of the opponent‘s case but the lawyer‘s instructions to the person or persons conducting the surveillance also reveals the lawyer‘s analysis of potentially fruitful areas of investigation.... Disclosure of the fact of surveillance and a description of the materials recorded would thus impinge on the very core of the work-product doctrine.
Ranft v. Lyons, 163 Wis.2d 282, 471 N.W.2d 254, 261-62 (Ct.App.1991). However, this appears to be a minority rule. Even in those cases allowing defendants to withhold surveillance materials until deposing the plaintiff, courts generally hold factual information regarding the surveillance receives no protection. See, e.g., Fletcher v. Union Pac. R.R., 194 F.R.D. 666, 668 (S.D.Cal.2000) (“[W]hether Defendant conducted surveillance and the dates on which any surveillance took place [a]re not privileged.“); Smith, 168 F.R.D. at 587 (requiring defendants to disclose whether they performed surveillance, when they did so, and the format of surveillance used); Doster Constr. Co., 772 So.2d at 451; Dodson, 390 So.2d at 707 (“[A] party must disclose the existence of material which is or may be relevant to the issues in the cause whether as substantive, corroborative, or impeachment evidence. Relevant evidence cannot be allowed to remain hidden....“).
I would adopt the latter view, and I find particularly persuasive the federal court‘s reasoning in Smith:
It may well be that the decision about if, when, or how surveillance of a plaintiff should be conducted does reveal something about how the defendant‘s attorney investigates and prepares a case for trial. However, not every action that reveals, to some minimal degree, an attorney‘s general strategy or approach to a case amounts to protected opinion work product. For example, the manner in which an attorney phrases his answers to interrogatories may reveal, to some degree, the attorney‘s strategy in defending against the plaintiff‘s claims. Nonetheless, the attorney could not refuse to answer the interrogatories on the grounds of the work product doctrine.
Smith, 168 F.R.D. at 587. Because the workers’ compensation system is nonadversarial, in this context we should uphold even more doggedly the maxim that litigation by surprise is incompatible with modern-day law practice. See Whitley v. C.R. Pharmacy Serv., Inc., 816 N.W.2d 378, 386 (Iowa 2012) (noting trial by surprise interferes with the search for truth); State ex rel. Hager v. Carriers Ins. Co., 440 N.W.2d 386, 389 (Iowa 1989) (advancing “the basic notion of fairness ... aimed at elimination of trials by ambush” (internal quotation marks omitted)); cf. Simons v. State Comp. Mut. Ins. Fund, 262 Mont. 438, 865 P.2d 1118, 1121-22 (1993) (excluding surveillance footage from trial when the employer did not disclose it as an anticipated trial exhibit). Requiring employers and insurers to disclose upon request the fact of surveillance, the dates of surveillance, the form of surveillance, and the investigator‘s identity serves this purpose.
V. Conclusion.
Although I agree the commissioner did not err or abuse his discretion in ruling on Core Group‘s petition for declaratory order, I disagree with the majority‘s conclusion that the commissioner erred in interpreting
STATE of Iowa, Plaintiff-Appellee,
v.
Clifford Lynn McNEAL, Defendant-Appellant.
No. 13-1229.
Supreme Court of Iowa.
June 19, 2015.
Rehearing Denied Aug. 14, 2015.
Notes
Any employee, employer or insurance carrier making or defending a claim for benefits agrees to the release of all information to which the employee, employer, or carrier has access concerning the employee‘s physical or mental condition relative to the claim and further waives any privilege for the release of the information. The information shall be made available to any party or the party‘s representative upon request. Any institution or person releasing the information to a party or the party‘s representative shall not be liable criminally or for civil damages by reason of the release of the information. If release of information is refused the party requesting the information may apply to the workers’ compensation commissioner for relief. The information requested shall be submitted to the workers’ compensation commissioner who shall determine the relevance and materiality of the information to the claim and enter an order accordingly.
Model State Admin. Procedure Act § 2-103 cmt. (amended 1981), 15 U.L.A. 27 (2000).[A]s subsection (a) makes clear, an agency must issue a declaratory order upon receipt of a proper petition therefor unless it determines that under the particular circumstances its issuance would either (1) be contrary to a rule issued in accordance with subsection (b) [enacted as subsection (2) in Iowa], or (2) would substantially prejudice the rights of any persons who would be indispensable parties to the proceeding and do not consent to determination of the matter by a declaratory order.
