Graham v. BakerGraham v. Baker
In 1979, the Henrys purchased a parcel of agricultural land from the Grahams under a real estate contract requiring annual payments. During the course of the next several years, as commodity prices fell and the farm economy worsened, it became increasingly more difficult for the Henrys to make those annual payments. As a result, the parties agreed to some minor adjustments to the contract that allowed the Hen-rys to maintain their end of the bargain until December 1, 1987, when they were unable to make their annual payment.
The Grahams enlisted the services of attorney George Flagg, granting him a power of attorney in relation to the contract. On December 29, 1987 Flagg served the Henrys with notice of forfeiture. Iowa Code section 654A.6 (1987) requires a creditor to request mediation and obtain a mediation release before undertaking forfeiture proceedings. For this reason the notice of forfeiture was withdrawn and a mediation session eventually was held on February 19, 1988.
At that session, Flagg refused to cooperate with the mediator, denying the Henrys any opportunity to put forward their proposals for resolving the situation, and demanding that he be given a mediation release. It was clear that Flagg was hostile to the Henrys, the mediator, and the mediation process. He issued an ultimatum that the Henrys either sell the land within thirty days and remit the balance due on the contract to the Grahams or acquiesce in its forfeiture. As the meeting went on, Flagg became increasingly more agitated and belligerent, seizing upon statements made by the Henrys’ attorney to accuse them of bad faith in failing to pay and continuing to demand that his client be given a mediation release.
Basing its decision on Flagg’s behavior, the mediation service refused to issue the Grahams a release, granting instead an extra thirty days to attempt mediation. In spite of the fact that no release had been issued, Flagg filed and served a second notice of forfeiture on the Grahams’ behalf shortly after the February 19 mediation session. The Henrys brought suit to enjoin the Grahams from continuing forfeiture proceedings, based upon the Grahams’ failure to obtain a mediation release. The district court granted the Henrys an injunction, and the Grahams went to court seeking what they characterized as a writ of mandamus to force the mediation service to issue the release. After a hearing, the court ordered that a release be granted and the Henrys appealed.
The district court based its decision to grant the Grahams’ request for a mediation release on two distinctly different procedural theories. In the first, the court relied upon our decision in
Salsbury Laboratories v. Iowa Department of Environmental Quality,
Which of these characterizations is correct is important because jurisdictional questions will have an impact upon our scope of review, and upon which provisions of the Code apply to the facts of the case. If this action is in fact a petition for judicial review of an agency decision, our review will be at law.
See e.g., Iowa Bankers Ass’n v. Iowa Credit Union,
Chapter 654A of the Code sets up the “farm mediation service.” It initially names the attorney general or the attorney general’s designee to serve as a “farm crisis program coordinator.”
The term “agency” is defined in the Iowa Administrative Procedures Act as:
[Ejach board, commission, department, officer or other administrative office or unit of the state. “Agency” does not mean the general assembly, the judicial department or any of its components, the office of consumer advocate, the governor or a political subdivision of the state or its offices and units.
It is clear that the attorney general or the attorney general’s designee, when acting in his or her capacity as farm crisis coordinator, is a state agency for purposes of chapter 17A. The legislature made this explicit in mandating that the coordinator adopt rules for mediation in accordance with chapter 17A.
In
Benson,
we held that a local pension board was not a state agency, even though it was established by state law.
The scope of authority granted to the mediation service is minimal. The requirements placed upon creditors by chapter 654A are procedural, adding an additional step in the process required for forfeiture, and do not affect substantive rights.
First Nat’l Bank in Lenox v. Heimke,
Chapter 654A prescribes no particular type of administrative controls to be placed upon the mediation service. Its status as a private corporation, rather than chapter
*400
17A, governs its administration. In fact, the corporate body that functions as the “farm mediation service” is created pursuant to Iowa Code chapter 504A, rather than chapter 654A. The mediation service derives its funds through a contract with the state, calling for an hourly rate for services performed, rather than via a direct legislative appropriation. Rulemaking authority is granted to the attorney general or the attorney general’s designee, not to the mediation service.
Our next task is to determine whether an action for mandamus properly can be filed against the farm mediation service, a private corporation. Generally, mandamus may issue to compel a person, board, corporation, officer, or inferior court to perform a duty that arises by operation of law. 55 C.J.S.
Mandamus
§ 1 (1948). Our mandamus statute provides that the writ may issue to compel an inferior tribunal, board, corporation, or person to act or not to act.
The core of the Henrys’ appeal presents us with the question of whether Flagg’s behavior at the mediation proceeding constitutes “participation” as that term is intended by the statute.
The word “participate” means “to take part in something (as an enterprise or activity) usu[ally] in common with others.”
Webster’s Third International Dictionary.
Participation “means to take part in, to receive or have a part in an activity.”
Burrell v. Ford Motor Co.,
The word ‘participating’ has no clear and unmistakable meaning. In its primary sense, it means simply a sharing or taking part with others but when it is applied to a particular situation, it takes on secondary implications that render it ambiguous. Under some circumstances it may denote a mere passive sharing while under other circumstances an implication of active engagement may accompany its use.
Fireman’s Fund Indem. Co. v. Hudson Associates, Inc.,
The statute does not give the mediation . service the power to compel either creditor Í or debtor to negotiate. It merely attempts I to set up conditions in which the parties? might find a solution to their problems1 short of forfeiture or foreclosure. In this ‘ regard, the mediator’s duties are to
listen
to both creditor and borrower,
attempt
to mediate the situation,
advise
the parties as to the existence of assistance programs,
encourage
adjustment or refinancing of the debt, and to
advise, counsel,
and
assist
the parties in agreeing as to future financial relations.
Flagg’s behavior which ranged be- j tween acrimony and truculency precluded any beneficial result to the parties from the mediation process. It has cost his clients ¡ considerable time and expense. Nevertheless, his inappropriate behavior is not determinative. We find that Flagg’s presence at j the mediation meeting satisfied the mini-1 mal participation required by the statute, j
The statute commands that the mediator
shall
sign the release if one of the parties refuses to attach his or her signature to it.
The Henrys’ second ground for appeal is based upon Iowa Rule of Civil Procedure 29, which requires the compulsory joinder of certain counterclaims. The Hen-rys contend that Rule 29 required that the Grahams file their petition to compel the mediation service to issue a release as a counterclaim in the Henrys’ action to enjoin forfeiture proceedings. This contention confuses counterclaim with third-party practice. A counterclaim, as contemplated by the Iowa Rules of Civil Procedure, is a claim which one of the parties in a suit may assert against an opposing party in the same suit. In the action the Henrys filed against the Grahams to enjoin the forfeiture proceeding, the Iowa Farmer/Creditor Mediation Service was not an “opposing party.” The mediation service was not even a party to the Henrys’ suit. The Grahams were under no obligation to file their claim against the mediation service in that suit.
Finally, the Henrys claim that circumstances surrounding issuance of the writ constitute a deprivation of property without due process under both the Iowa and United States Constitutions. They base their appeal on the following set of facts. On March 30, 1988, the Grahams filed their petition asking that the court grant them a writ of mandamus. Six days later, on April 5, the court entered an order setting hearing on the Grahams’ petition for April 11, 1988, and additionally ordered that copies of its order, the original notice, and the Grahams’ petition be served on the defendants at least five days before hearing.
The essence of the Henrys’ argument is that the court erred in scheduling the hearing so quickly after filing of the Grahams’ petition. The Henrys claim that the time-lines established by the Iowa Rules of Civil Procedure with regard to filing and discovery should have been followed. This contention is based upon a reading of the Iowa Code, section 661.3 (1987), which provides that an action for mandamus be tried *402 as an equitable action. Section 611.13 further provides that the provisions of the Code with regard to prosecution of a civil action apply to equitable proceedings, “unless the contrary appears.”
The Henrys argue that no specific provisions of chapter 661 exempt actions for mandamus from application of section 611.13. An action for mandamus is a summary and extraordinary proceeding.
Reed v. Gaylord,
The ministerial act here of signing the mediation release was due following the creditor’s participation. The record shows that the Henrys do not dispute these facts. The Henrys were not prejudiced by the fact that they were not allowed time for discovery, since Flagg’s behavior was irrelevant to the legal issue before the court in the mandamus action. The trial court did not err by not adhering rigidly to the Rules of Civil Procedure.
In this case, the Henrys were granted both notice and an opportunity to be heard.
Roth v. Reagen,
The judgment of the district court is affirmed.
AFFIRMED.