RHOADES SALVAGE/ABC METALS v. TOWN OF MILTON SELECTBOARD
No. 09-432
Vermont Supreme Court
September 27, 2010
Motion for reargument denied September 27, 2010.
2010 VT 82 | 9 A.3d 685
¶ 23. Finally, tenants’ brief raises a number of claims of error regarding the court‘s decision. Tenants, however, did not cross-appeal the court‘s decision, and, therefore, we lack jurisdiction to reach the merits of their claims. Huddleston v. Univ. of Vt., 168 Vt. 249, 256, 719 A.2d 415, 419-20 (1998).
Affirmed.
¶ 1. September 27, 2010. Landowner Rhoades Salvage/ABC Metals appeals from a decision denying its application for a certificate of approved location for a junkyard. We affirm.
¶ 2. Landowner operates a junkyard in the Town of Milton. In April 1974, the Town Zoning Administrator issued a certificate of approval for this junkyard pursuant to
¶ 3. Landowner appealed the denial to the Chittenden Superior Court pursuant to
¶ 4. Applying a deferential standard of review to the selectboard‘s decision, the court examined the statutory criteria provided in
¶ 5. On appeal, landowner makes three arguments: (1) the superior court applied the improper standard of review in upholding the denial; (2) the denial was not supported by the facts; and (3) landowner was erroneously denied compensation for the costs of relocating the junkyard. We address each in turn.
I.
¶ 6. We review the superior court‘s legal conclusion with regard to the proper standard of review de novo. See Barnett v. Town of Wolcott, 2009 VT 32, ¶ 15, 185 Vt. 627, 970 A.2d 1281 (mem.) (“Our review of legal conclusions... is nondeferential and plenary.“); Searles v. Agency of Transp., 171 Vt. 562, 562, 762 A.2d 812, 813 (2000) (mem.) (where issue is one of law “our review is nondeferential and plenary“).
¶ 7. To operate a junkyard, a landowner must obtain a certificate of approval for the location of the junkyard from the town municipal board.
Any person dissatisfied with the granting or denial of an application may appeal to the superior court for the county in which the proposed junkyard is located. The court by its order may affirm the action of the legislative body or direct the legislative body to grant or deny the application.
¶ 8. The superior court here, analogizing to the presumption of on-the-record review of agency decisions, limited its review to “whether, on the record developed before the agency, there is any reasonable basis for the finding.” Landowner, however, argues that the court erred by failing to review the denial of the certificate de novo and that the decisions relied on by the superior court — all of which involve review of agency decisions — are distinguishable. Landowner argues that unlike an appeal from an administrative agency, whose decisions involve formal proceedings and specific expertise, a town selectboard employs a “very informal proceeding with members having no expertise.” Thus, landowner argues, a
¶ 9. Landowner‘s arguments with regard to the appropriate standard of review are unavailing. Notwithstanding landowner‘s claim that our decision in Town of Victory v. State, 2004 VT 110, 177 Vt. 383, 865 A.2d 373, is distinguishable, the analysis employed in that case is relevant. There, we addressed the standard of review governing an appeal of an appraisal of property by the division of property valuation and review to the superior court where the statute was silent as to this issue. We rejected the taxpayer‘s argument that the superior court should have reviewed the appeal de novo, and noted instead that “we presume that judicial review of administrative decisions is deferential absent a clear statement of contrary intent.” Id. ¶ 16. We also noted that on-the-record review is particularly appropriate in “contested cases where there has been an adjudication in the agency” and where the adjudicative body has special expertise. Id. ¶ 17; see also Conservation Law Found. v. Burke, 162 Vt. 115, 126, 645 A.2d 495, 501-02 (1993) (“The nature of review is determined by the Legislature, but we presume that review will be on the record and not de novo.“); Dep‘t of Taxes v. Tri-State Indus. Laundries, Inc., 138 Vt. 292, 294-95, 415 A.2d 216, 218-19 (1980) (stating that judicial review of agency decisions is presumed to be on the record absent specific statutory authorization to the contrary). More recently, we rejected a taxpayer‘s claim that it was entitled to de novo review of an appeal from a denial of a tax refund by the Department of Taxes where the statute was silent as to the appropriate review. See GP Burlington S., LLC v. Dep‘t of Taxes, 2010 VT 23, ¶ 16, 187 Vt. 421, 996 A.2d 180. In rejecting de novo review, we refused to put the superior court “in the position of substituting its decision for agency inaction, without even the benefit of a formal record, in specialized areas ordinarily reserved for the agency to implement policy and apply statutory law” and declined to “have the courts perform these executive functions absent clear legislative authorization.” Id.
¶ 10. Here, the Legislature has deliberately delegated power to the selectboard, charging that body with applying the broad criteria (not challenged by landowner) outlined in the junkyard location statute. In this role, the selectboard employs the special function of a local legislative body in taking into account purely subjective considerations such as protecting the Town‘s “attractive environment.” See
¶ 11. Moreover, the record here was adequately developed in the proceeding before the selectboard. The transcripts indicate that, though informal, there were two separate hearings, in which landowner was represented by counsel, as well as a site visit by the selectboard to the junkyard. Landowner had ample opportunity to present evidence during these proceedings. Landowner also had an opportunity to supplement his motion for summary judgment during the appeal before the superior court, but for reasons unknown, he neglected to do so.
II.
¶ 12. Landowner next contends that, even under on-the-record review, the selectboard‘s findings were contrary to the evidence and the superior court‘s decision upholding these findings in its grant of summary judgment to the Town was erroneous. Specifically, landowner argues that the selectboard‘s findings were largely arbitrary and did not provide a “rational connection” to the statutory criteria. We disagree.
¶ 13. In an appeal from a summary judgment, we apply the same standard of review as the superior court. Doe v. Forrest, 2004 VT 37, ¶ 9, 176 Vt. 476, 853 A.2d 48. Summary judgment will be affirmed where there is no genuine issue as to any material fact and a party is entitled to judgment as a matter of law.
¶ 14. The statute governing junkyard location approval is fairly broad and requires a municipal board to take into account the following aesthetic, environmental, and community welfare considerations in deciding whether or not to grant a certificate of approval:
[T]he legislative body may also take into account the clean, wholesome and attractive environment which has been declared to be of vital importance to the continued stability and development of the tourist and recreational industry of the state and the general welfare of its citizens by considering whether or not the proposed location can be reasonably protected from having an unfavorable effect thereon. In this regard the legislative body may consider collectively the type of road servicing the salvage yard or from which the salvage yard may be seen, the natural or artificial barriers protecting the salvage yard from view, the proximity of the proposed salvage yard to established tourist and recreational areas or main access routes, thereto, proximity to neighboring residences, groundwater resources, surface waters, wetlands, drinking water supplies, consistency with an adopted town plan, as well as the reasonable availability of other suitable sites for the salvage yard.
¶ 15. Following public hearings held in December 2007 and January 2008 as well as a public site visit to the junkyard, the selectboard made the following findings in support of its decision to deny landowner‘s certificate of approval: (1) the extent of contamination or lack of contamination related to hazardous and other materials has yet to be determined; (2) not enough details regarding water quality are available and there are concerns with regard to arsenic levels; (3) the plan for tire removal is inadequate and insufficient and the volume of tire material is a potential public health and safety hazard; (4) landowner‘s hours of operation and activities do not afford adjacent property owners a reasonable degree of enjoyment and use of their property; (5) landowner has failed to adhere to prior enforcement agreements with the Agency of Transportation; (6) landowner‘s lack of past performance in following statutory procedures and deadlines puts his credibility into question; and (7) lack of participation by representatives from the State of Vermont at the hearings before the selectboard represents a lack of affirmative assurance from the State as to the safety of the junkyard.
¶ 16. With regard to the first two findings, there was adequate evidence presented to the selectboard justifying concern over the junkyard‘s contribution to water contamination. There were two reports submitted to the selectboard, and both indicated elevated levels of arsenic. Landowner offered testimony from an environmental consultant, who was hired by landowner and who authored one of the reports. The consultant testified that though the high arsenic levels were detected in both his and a second study, he believed that those levels could be naturally occurring. At the very least, these two reports raised a question of whether landowner‘s operation of the junkyard was contributing to degradation of the surrounding water sources. Given that the burden was on landowner to demonstrate that his operation of a junkyard
¶ 17. As to the third finding — concern about the volume of tire material on the site — the evidence presented during the selectboard proceedings included testimony from the Town‘s fire chief who stated that he was concerned about the size of the tire pile and the risk to public safety if the tire pile were ever to catch fire. The fire chief also testified that the fire department had been called in the past following reports of fire at the salvage yard, but that these fires had all been legal. David Joachim, the Zoning Administrator and Health Officer, testified that he had concerns about the health of landowner‘s neighbors following a legal fire on landowner‘s property. Though landowner testified that he had entered into an agreement with the State to remove a certain amount of tires from the site by May 2008, the selectboard was skeptical about whether that removal would “put a dent in that pile.” This evidence provided more than enough support for the selectboard‘s conclusion that the volume of tires posed a public health risk.
¶ 18. As to the fourth finding regarding the effect of landowner‘s operation of the junkyard on its neighbors, the selectboard heard testimony from a number of adjacent property owners. One neighbor testified as to noise complaints stemming from operation of the salvage yard “Monday through Friday sun up to well past sun down” and at least part of the day on Saturday and Sunday. Others testified as to the effect of landowner‘s burning practices on their use of their property. Rhoades’ own testimony with regard to his relationship with his neighbors indicated an unwillingness to accommodate these complaints, including the following statement: “I am not going to give up my right to be able to maintain my equipment, service my equipment and do what I need to do....” Further, Rhoades testified that during the week, “we‘re apt to be busy from seven thirty in the morning to, on some occasions, to after dark... [a]nd some of the people that are voicing their displeasure with it I feel miscalculated where they bought and where they moved.” The selectboard‘s conclusion that the noise emanating from the junkyard “from sun up to well past sundown” would have an unfavorable effect on “the general welfare of [the town‘s] citizens,”
¶ 19. Finally, although we agree with the superior court that the fifth, sixth, and seventh findings — which all involved consideration of landowner‘s past noncompliance with state environmental regulations — are somewhat problematic, there was also at least some basis for the selectboard‘s hesitation with regard to landowner‘s future compliance. The Town concedes that the fifth finding — stating that landowner failed to adhere to prior agreements with the State — was in error as it was based on the selectboard‘s confusion with regard to whether landowner had been required to erect a fence on the property. The sixth finding — essentially stating that landowner‘s history of noncompliance with state regulations negatively affected his credibility — though broad, had some support. Over the past fifteen years, landowner has had two enforcement actions brought against him by the State and though he is now in “substantial compliance,” his past noncompliance as well as the fact that he allowed his certificate of location approval to lapse for eight years, are relevant considerations to whether he will ensure that operation of his junkyard will adequately protect the public‘s health and general welfare. Finally, we agree that the seventh finding is
¶ 20. Though landowner is correct that not all of the above findings are adequately tethered to the statutory criteria provided in § 2254, the question before us is whether the selectboard made enough factual findings to justify its decision to deny the certificate. Cf. In re Eastview at Middlebury, Inc., 2009 VT 98, ¶ 31, 187 Vt. 208, 992 A.2d 1014 (concluding that statutory criteria for development permit did not create laundry list of factual findings Environmental Court was required to make, but rather required only that the factual findings the court did make support its legal conclusion); Greenberg v. Hadwen, 145 Vt. 112, 116, 484 A.2d 916, 918 (1984) (noting that unessential findings, even if incorrect, are not grounds for reversal). For the reasons stated above, we conclude that it did.
III.
¶ 21. We do not reach landowner‘s final claim — that if his application for location approval of his junkyard is denied, he is entitled to just compensation for the removal, relocation, or disposal of the junkyard — because the claim is premature. In support of his argument, landowner relies on
Affirmed.
¶ 22. Skoglund, J., dissenting. It was a shouting match. Apparently there were local scores to settle. Audience members questioned one another, talked over evidence, and interrupted the selectboard members. Doors were slammed and petty grievances were aired. No “witness” was sworn in. There was no real opportunity to challenge the relevance of testimony or the competence or expertise or bias of any “witness.” This is the proceeding the majority equates with a formal agency adjudication. The selectboard‘s conclusion was something, but it was certainly not in the same league as a decision by an agency created to govern disputes at an administrative level. The interests of due process demand that an appeal of such a determination be conducted de novo in a court of law. Because the majority chooses to ignore this morass under the guise of “separation-of-powers principles,” I dissent. Ante, ¶ 10.
¶ 23. The majority‘s recitation of the law — and the trial court‘s as well — is flawless, but inapplicable. Our jurisprudence is replete with examples of agency deference and recognition of the unique position such bodies hold within our government. See, e.g., Town of Victory v. State, 2004 VT 110, ¶ 17, 177 Vt. 383, 865 A.2d 373 (upholding on-the-record review of agency determination based on “separation of powers between the judicial and executive branches” and the recognition
¶ 24. The traditional deference we extend to administrative decisions stems, in part, from the fact that their decision-making process involves complex topics falling specifically within an agency‘s unique area of competency. See Town of Killington, 2003 VT 88, ¶ 5 (“Absent a clear and convincing showing to the contrary, decisions made within the expertise of agencies are presumed correct, valid and reasonable.” (quotation and alterations omitted)). Here, the selectboard does not possess the type of specialized expertise that would entitle its determination to this heightened level of deference. As part of a two-step process to obtain permission to operate a junkyard, a landowner must first seek a certificate of approved location from the municipal legislative body where it intends to operate the facility.
¶ 25. First, apart from the general aesthetic considerations, many of the factors the selectboard must consider, including the determination of whether the proposed location can reasonably be prevented from harming public health or safety, clearly involve a more specialized knowledge the selectboard members should not be presumed to possess. Cf. Devers-Scott v. Office of Prof‘l Regulation, 2007 VT 4, ¶ 19, 181 Vt. 248, 918 A.2d 230 (holding, in review of decision to strip midwife of license, that administrative law judge‘s conclusions and application of law were not entitled to deference because ALJ lacked expertise in midwifery). Here, the selectboard‘s decision to deny the certificate of approved location relied, in large part, on precisely those health and safety considerations that would appear to lie outside the selectboard‘s general area of expertise. Of the four findings the trial court upheld as having some rational basis, two deal with pollution and water quality, a third with the flammabil-
¶ 26. Second, to the degree that the selectboard‘s decision properly rested on aesthetic considerations within its purview, the application of those subjective factors as part of the grant or denial of a certificate of approved location is akin to other location decisions committed to the discretion of local municipal bodies. See, e.g.,
¶ 27. In rejecting landowner‘s argument for de novo review, the trial court bluntly stated that “[z]oning statutes [were] not applicable or analogous” to the proceeding at hand without providing any citation or rationale to support its conclusion. Contrary to this assertion, the selectboard‘s decision to deny landowner a certificate of approved location is fundamentally a land-use-regulation decision. One prerequisite for an application for approved location is a certificate from the municipal zoning body confirming that the junkyard‘s “proposed location is not within an established district restricted against such uses or otherwise contrary to the prohibitions of such zoning ordinance.”
¶ 28. Further evidence for the conclusion that the selectboard‘s decision should be reviewed de novo can be found in the broader context of the licensing statute. The ultimate approval for a junkyard operation requires that, following receipt of a certificate of approved location, landowners apply for a license to operate a junkyard from the state agency of transportation,
¶ 29. Beyond the selectboard‘s lack of substantive — as opposed to subjective — expertise, de novo review is necessary in this case because the procedure here fell
¶ 30. In stark contrast to this hearing, the deference we now almost automatically accord to administrative tribunals, and which the majority grants the selectboard here, flows in part from the procedural formality designed to protect parties’ rights and laid out in the Administrative Procedure Act (APA),
¶ 31. Absent the technical expertise necessary to receive judicial deference and because the selectboard‘s decision was based on an informal and conflict-laden proceeding totally devoid of testimony or evidence as we commonly understand them, I would remand this case to the trial court to conduct a de novo review.
¶ 32. I am authorized to state that Justice Burgess joins in this dissent.
As modified October 21, 2010.
