Lead Opinion
This case presents a challenge by landowners to an emergency order issued by the Iowa Department of Natural Resources (DNR) to order the landowners to quarantine land formerly used as a whitetail deer preserve for five years after whitetail deer harvested on the property tested positive for chronic wasting disease, or CWD, The DNR emergency order required the landowners to repair and maintain an electric fence around the property for the quarantine period.
The landowners challenged the DNR emergency order in an administrative appeal under the Iowa Administrative Procedures Act, Iowa Code section 17A.19(10) (2013). An administrative law judge issued a proposed decision, finding the DNR lacked the statutory authority to issue the emergency order imposing a quarantine on the land. Upon review by the Iowa Natural Resources Commission (NRC), the NRC reversed the ruling, finding instead that the DNR had sufficient statutory authority to support the order. The landowners appealed.
The district court reversed the NRC. The court held the DNR’s emergency order was irrational, illogical, and wholly unjustifiable under Iowa Code section 17A.19(10)(0 because the DNR was acting outside the legislature’s grant of authority. The court, however, rejected the landowners’ argument that the DNR’s emergency order amounted to a compensable taking under the United States and Iowa Constitutions. Upon entering its judgment, the court also refused to reopen the record to allow the DNR to present additional evidence that the landowners received certain indemnity payments from the United States Department of Agriculture (USDA).
The DNR appealed, and the landowners cross-appealed. For the reasons expressed below, we conclude the DNR lacked statutory authority to issue an emergency order that imposed a quarantine on land used as a whitetail deer-hunting preserve. We also conclude the action of the DNR did not amount to an impermissible taking of property under the United States Constitution or the Iowa Constitution. In light of these rulings, we conclude the DNR’s challenge of the district court’s failure to reopen the record to receive additional evidence is moot. We therefore affirm the judgment of the district court.
I. Factual and Procedural Background.
A. Introduction: Positive CWD Test from Deer Harvested at the Pine Ridge Hunting Lodge. In the 1990s, Tom and Rhonda Brakke (the Brakkes) established a whitetail deer-breeding farm in Clear Lake, Iowa. In 2005, they bought Pine Ridge Hunting Lodge (Pine Ridge) in Davis County, Iowa, for $575,000.
The property was licensed as a whitetail deer-hunting preserve under Iowa Code chapter 484C. The majority of the deer the
Whitetail deer are susceptible to CWD. CWD is a type of transmissible spongiform encephalopathy, also known as prion disease. The DNR seeks to prevent the spread of CWD through voluntary agreements with breeding farms and statutory regulation of whitetail deer-hunting preserves. See Iowa Code § 484C.12.
Originally, the Brakkes participated in a voluntary CWD program at their Clear Lake breeding farm so they could transport and sell their deer to others. With the success of their hunting operations at Pine Ridge, in 2012 the Brakkes ceased enrollment of the Clear Lake breeding farm in the voluntary CWD program because they were no longer in the business of selling deer to other operations. The Brakkes, however, continued to submit samples for testing from all deer harvested from Pine Ridge as required by Iowa Code section 484C.12.
On June 16, the DNR received notification from a CWD testing lab that a deer from Pine Ridge tested positive for CWD. The CWD-positive deer originally came from the Brakkes’ breeding farm in Clear Lake. After confirming the diagnosis, the DNR notified the Brakkes on July 19. Prior to this case, no captive or wild deer had ever tested positive for CWD in Iowa.
Under Iowa law, the Iowa Department of Agriculture and Land Stewardship (IDALS) regulates whitetail deer on deer farms, while the DNR regulates deer on whitetail deer-hunting preserves. Iowa Code § 170.1A(2); id. § 484C.2(2). On August 29, IDALS received permission from the Brakkes to kill and test some deer at the Clear Lake farm. One deer at the Clear Lake farm tested positive for CWD. At some point, IDALS issued a notice of quarantine to the Brakkes for the Clear Lake farm.
B. September 7, 2012 Agreement. On September 7, the Brakkes and the DNR signed an “Agreement for Chronic Wasting Disease Recovery Plan at Pine Ridge Hunting Lodge” (Agreement). Under the Agreement, the Brakkes were allowed to carry out planned hunts at Pine Ridge scheduled between September 8, 2012, and December 25, 2012. The Brakkes, however, were required to install jointly with the DNR an electronic fence inside the perimeter of the existing fence surrounding Pine Ridge, with the costs split evenly between the DNR and Pine Ridge. After construction of the electric fence, the Brakkes were solely responsible for fence repair and maintenance. DNR staff was to conduct weekly perimeter and fence inspections, with all repairs identified by DNR staff to be submitted to the Brakkes in writing and completed by the Brakkes within twenty-four hours.
Further, the Agreement provided that Pine Ridge be completely depopulated of all deer and elk no later than January 31, 2013. All animals were to be tested for CWD and disposed of in accordance with applicable regulations at the Brakkes’ cost. Once the depopulation of Pine Ridge was complete, the Brakkes, at their expense, agreed to clean and disinfect the facility in compliance with DNR rules. Finally, the parties agreed to a future operational plan to “be developed in conjunction with the DNR after depopulation was complete.” The term "of the Agreement was from the date of execution until January 31, 2013.
One additional deer harvested at Pine Ridge in December 2012 tested positive for CWD. After the conclusion of the hunts, Pine Ridge depopulated all its deer. In April 2013, all feeders were disinfected with bleach, excess feed was buried, and all the terms of the Agreement were fulfilled with one exception—the parties did
C. April 26, 2013 Letter. On April 26, the Brakkes wrote a letter to the DNR. In the letter, the Brakkes stated, “As you know, the area utilized by Pine Ridge Hunting Lodge as a hunting preserve is subject to a five (5) year quarantine.” The letter noted that the Brakkes had “complied with all requirements of the September 7, 2012 agreement.” The letter announced that if no response were received from the DNR, the Brakkes would regard all requirements of the Agreement as satisfied. The Brakkes further announced they would no longer be operating Pine Ridge as a whitetail deer-hunting preserve.
By June 5, the DNR discovered the gates at Pine Ridge were standing open and that portions of the fence were damaged or had been removed.
D. The Emergency Order. On June 6, the DNR issued an emergency order to require the Brakkes to stop their deconstruction of the fence surrounding Pine Ridge and to immediately restore the portions of the fence that were damaged. The emergency order also required the Brak-kes to close and keep closed all of the gates and to authorize the DNR to access Pine Ridge for a limited duration in order to kill any deer that may be present on the property. Finally, the emergency order required the Brakkes submit and agree to execute a plan designed to ensure that CWD be quarantined within, and not spread beyond, Pine Ridge.
On June 7, the Brakkes closed the gates at Pine Ridge and repaired the fence. On June 11, however, wild deer were seen inside the fence.
E.The Administrative Hearing and the Natural Resource Commission Appeal.
1. Introduction. The Brakkes appealed the emergency order on June 25. In the letter initiating the appeal, the Brakkes claimed the emergency order violated their United States and Iowa constitutional rights and other property rights because (1) the DNR lacked jurisdiction over Pine Ridge once it was no longer a hunting preserve; (2) the terms of the quarantine and emergency order without compensation were an unconstitutional taking; and (3) the DNR’s actions were arbitrary, capricious, and an abuse of discretion.
The Brakkes cited six reasons why the DNR’s actions were arbitrary and capricious. First, they claimed only a limited number of deer species may contract CWD and CWD does not meaningfully limit the growth of the species. Second, the Brakkes asserted that CWD is not highly infectious and there is a reservoir of CWD in the wild that cannot be fully eliminated. Third, the Brakkes claimed there are more harmful diseases which affect deer for which the DNR does not impose such drastic measures. Fourth, the Brakkes asserted the emergency order would not materially affect the spread of CWD. Fifth, the Brak-kes claimed the DNR previously told them that it had no issues with removing the fence. Finally, the Brakkes alleged that Pine Ridge was separated into two sections and about half of the property was never exposed to CWD.
2. Contested ease hearing. A contested case hearing was held beginning on November 18. Dale Garner of the DNR testified he understood that the USDA indemnification plan for compensating owners of deer killed as a result of positive CWD tests was no longer available. Neither Iowa in general nor the DNR or the IDALS had an indemnification plan.
The Brakkes presented evidence from a finance expert with experience in hunting leases that the operating income for Pine Ridge for the year 2013, without any quarantine or restrictions, would have been $157,537. If thp Brakkes had operated Pine Ridge as a farm instead of a hunting preserve they would have lost $22,021. The finance expert calculated-the five-year total income of Pine Ridge as a hunting preserve at $917,309, while the five-year total income of Pine Ridge as a farm would be negative $100,465. If the Brakkes operated Pine Ridge as a free-range hunting operation, with no fencing or captive animals, the five-year income would be $143,307. On cross-examination, the finance expert admitted he was not a certified public accountant or a licensed appraiser, and he conducted an analysis that was not a business valuation.
After the final hearing on January 8, 2014, the Brakkes and the DNR entered a stipulation to submit additional evidence. The stipulation stated that in December 2013, the Brakkes had killed all the remaining deer at Pine Ridge and the DNR collected samples from all of the adult deer. CWD was not detected in any of the samples.
On February 26, the administrative law judge (ÁLJ) issued her proposed decision. The ÁLJ ruled the DNR lacked jurisdiction to issue the emergency order. The ALJ determined Iowa Code chapter 484C only authorized the DNR to quarantine “diseased preserve whitetail,” not the land. Thus, the DNR’s interpretation of 484C.12 granting them the power to impose a five-year quarantine on “the preserve and all remaining animals located within the infected preserve” was irrational, illogical, and wholly unjustifiable because the interpretation extended, enlarged, and changed the legislature’s intent.
3. Appeal to NRC. On February 28, the DNR appealed the proposed decision. On April 16, the parties submitted a second joint- stipulation regarding the submission of additional evidence. The. parties noted they “disagree[d] about the relevancy of this finding,” but “[a] wild deer harvested in Allamakee County, Iowa in early December 2013 tested positive for Chronic Wasting Disease.” - The parties submitted briefs to the NRC, and an unrecorded hearing was held on May 8.
On May- 28, the NRC upheld the DNR’s emergency order. The commission found the Brakkes had not met their burden in demonstrating that Iowa Administrative Code rule 571—115.10, authorizing the five-year quarantine “on the preserve and all remaining animals located within the infected preserve,” was not authorized by chapter 484C. The commission admitted that chapter 484C does not explicitly state that the preserve land is to be quarantined, but it did not need to because the statute also gave the DNR the duty to prevent the spread of CWD. The commission held, as a matter of common sense and given the scientific evidence, a quarantine on the land is required to prevent the spread of CWD.
F. Judicial Review of NRC Action. The Brakkes petitioned for judicial' review of the NRC’s decision on June 27. On December 1, the DNR moved for leave to present additional evidence to the NRC. The DNR alleged the Brakkes had voluntarily depopulated their deer at the Clear Lake farm in August of 2014 and were paid $917,100 in indemnification by the
The district court issued its ruling on February 13, 2015, reversing the commission and additionally ruling the DNR’s actions were not a taking under the United States or Iowa Constitutions. The court found the DNR had been vested with interpretive authority and thus the DNR’s interpretation of the law would only be reversed if it was “irrational, illogical, or wholly unjustifiable.” The court, however, found it was irrational, illogical, and wholly unjustifiable for the DNR to have interpreted the statute to give it the authority to quarantine a hunting preserve when chapter 484C only specified the authority to quarantine “diseased preserve whitetail.” See Iowa Code § 484C.12(1). While the legislature intended to prevent the spread of CWD, the legislature clearly did not intend to give the DNR unfettered authority to quarantine any land that came into contact with infected deer. The court also held that the DNR’s actions were not a taking because the invasion to the Brak-kes’ property was temporary, both specifically as a taking per se and also as a taking involving the Penn Central
The DNR appealed the district court’s decision, and the Brakkes cross-appealed.
II. Standard of Review.
“Judicial review of agency decisions is governed by Iowa Code section 17A.19.” Kay-Decker v. Iowa State Bd. of Tax Review,
“We defer to the agency’s interpretation of law when the legislature has clearly vested that interpretation in the agency’s discretion.” Kay-Decker,
The standard of review for constitutional claims, including with respect to takings, is de novo. Harms v. City of Sibley,
III. Statutory Authority of the DNR to Quarantine Land Where Whitetail Deer Test Positive for CWD.
A. Introduction. The parties contest the scope of DNR “quarantine” authority under Iowa Code section 484C.12. The Brakkes point out the quarantine authority extends only to preserve whitetail deer, while the DNR suggests the power to quarantine preserve whitetail deer necessarily includes the power to exclude deer from reserve property where CWD has been discovered.
1. Relevant provisions of the Iowa Administrative Procedures Act. This appeal is brought under the Iowa Administrative Procedures Act. Under Iowa Code section 17A.23(3), “[a]n agency shall have only that authority or discretion delegated to or conferred upon the agency by law and shall not expand or enlarge its authority or discretion beyond the powers delegated to or conferred upon the agency.”
2. Statutory authority of NRC and DNR. Iowa Code chapter 484C generally grants DNR the authority to regulate preserve whitetail. Iowa Code § 484C.2(2). The statute defines “preserve whitetail” as a “whitetail kept on a hunting preserve.” Id. § 484C.1(8). The statute defines a hunting preserve as “land where a landowner keeps preserve whitetail as part of a business, if the business’s purpose is to provide persons with the opportunity to hunt the preserve whitetail.” Id. § 484C.1(6).
Iowa Code section 484C.12 concerns testing for CWD. Section 484C.12(1) provides,
Preserve whitetail that are purchased, propagated, confined, released, or sold by a hunting preserve shall be free of diseases considered reportable for wildlife. ... The department may provide for the quarantine of diseased preserve whitetail that threaten the health of animal populations.
Id. § 484C.12(1). Section 484C.12(2) relates to plans for eradication of diseases. It provides,
The landowner, or the landowner’s veterinarian, and an epidemiologist designated by the department shall develop a plan for eradicating a reportable disease among the preserve whitetail population. The plan shall be designed to reduce and then eliminate the reportable disease, and to prevent the spread of the disease to other animals. The plan must be developed and signed within sixty days after a determination that the preserve whitetail population is affected with the disease. The plan must address population management and adhere to rules adopted by the department. The plan must be formalized as a memorandum of agreement executed by the landowner or landowner’s veterinarian and the epidemiologist. The plan must be approved by the department.
Id. § 484C.12(2).
3.Rules related to quarantine arising from CWD. The DNR has promulgated a rule related to its power to impose a quarantine as a result of an outbreak of CWD. The rule provides,
A positive test result for chronic wasting disease will result in a minimum of a five-year quarantine on the preserve and all remaining animals located within the infected preserve. No animal movement in or out of the preserve shall occur during the quarantine period.
Iowa Admin. Code r. 571—115.10.
The language of the rule is different than .that under Iowa Code section 484C.12(1). Iowa Code section 484C.12(1) provides the DNR may provide for the quarantine of “diseased, preserve whitetail,” while the rule provides for a five-year “quarantine on the preserve and all remaining animals located within the infected preserve.” Compare Iowa Code § 484.12(1), with Iowa Admin. Code r. 571—115.10.
C. Positions of the Parties. The DNR
The DNR argues that the word “quarantine” in Iowa Code section 484C.12(1) must be understood as not only applying to the whitetail deer that were originally at Pine Ridge, but also to the physical property itself, even when no deer are present. According to the DNR, prions that cause CWD are known to persist in the environment for some time even after all infected deer have been removed or the property has ceased operating as a hunting preserve. The DNR asserts that killing all deer and then cleaning and disinfecting the premises are only part of a fully effective response to an outbreak of CWD. The DNR maintains that in order to provide effective containment of CWD, wild deer must be kept out of the premises for an extended period of time in order to prevent them from becoming infected.
Interpreting a quarantine otherwise, the DNR asserts, is itself irrational, illogical, and wholly unjustifiable because it ignores the express intent of the legislature to combat CWD due to the particular threat it poses to the health of Iowa’s animal populations, including the wild populations. The DNR points out no other particular disease is mentioned in chapter 484C but CWD, indicating this disease was of special concern to the legislature. See Iowa Code § 484C.12. According to the DNR, it would make no sense for a legislature so concerned with CWD to deny the state regulatory authorities the ability to protect the whitetail population from a primary pathway for transmission of the disease, namely exposure to prion-contaminated land.
In response to the Brakkes’ argument that the plain meaning of Iowa Code section 484C.12 clearly deprives the DNR of jurisdiction in this case, the DNR argues we must view the statute as a whole. In context, the legislature’s use of “hunting preserve” and “preserve whitetail” do not reveal the legislature’s intent with respect to the term “quarantine.” See id. The DNR asserts that restricting access to a space is inherent in the term “quarantine.” The DNR also points to the scientific evidence it introduced showing the continuing virulence of prion-contaminated areas. The DNR concludes by disputing the Brakkes’ characterization of CWD as a disease with low impact on deer populations and the hunting industry.
The Brakkes state that when an agency exceeds its authority, it acts without jurisdiction, and such acts are therefore void. Here, the Brakkes argue that under the language of Iowa Code section 484C.12, the DNR has jurisdiction only over “preserve whitetail” and “hunting preserves,” which the statute defines. See id. § 484C.1(6), (8). The Brakkes assert the DNR only has the power to impose a “quarantine of diseased preserve whitetail” that threaten the health of animal populations. Id. § 484C.12(1).
The Brakkes dispute the DNR’s focus on the word “quarantine.” The Brakkes suggest the focus cannot be on the word “quarantine” but instead on “quarantine of diseased preserve whitetail” under section 4840.12(1). The Brakkes note that as of June 6, 2013, the date of the emergency order, they did not have any “diseased preserve whitetail” at Pine Ridge, which itself was no longer a hunting preserve. According to the Brakkes, agencies lose jurisdiction over licenses when the license ends, with the only exception being when
The Brakkes also dispute the significance of CWD on the health- of Iowa’s population of whitetail deer. According to the Brakkes, CWD already exists at a low level in the wild deer population, with no scientific evidence showing a negative aggregate effect of CWD on deer populations. The Brakkes also argue that any harm CWD causes can be mitigated by ordinary, animal disease-management techniques—a five-year quarantine is not scientifically justified.
The Brakkes stress that, before the emergency order, the DNR had never issued a quarantine nor any instructions to the Brakkes indicating there was a quarantine on the property. Under the agreement the parties signed, deer were permitted to enter and leave Pine Ridge, thereby suggesting a quarantine was not in place. The Brakkes also argue that because the DNR believed it did not have the ability to close the gates at Pine Ridge once it learned the gates were open, DNR did not believe it had a quarantine on Pine Ridge or jurisdiction to take action on its own against Pine Ridge. The DNR’s claim that the quarantine existed as a matter of law prior' to the Brakkes’ surrénder of their license is, according to the Brakkes, belied by the facts.
D. Framework for Assessment of the Validity of the Substantive Agency Rule. An agency rule is “presumed valid unless the party challenging the rule proves ‘a “rational agency” could not conclude the rule was within its delegated authority.’ ” Meredith Outdoor Advert., Inc. v. Iowa Dep’t of Transp.,
While we grant deference to the agency’s interpretation of the statute when the legislature has clearly vested that interpretation in the agency, ultimately the interpretation and construction of a statute is an issue for the court to decide. Office of Consumer Advocate v. Iowa Utils. Bd.,
An agency possesses no common law or inherent powers. Branderhorst v. Iowa State Highway Comm’n,
E. Discussion.
1. Straightforward interpretation of legislative language. A straightforward reading of the language of Iowa Code section 484C.12 supports the Brakkes’ position. The term “quarantine” cannot be wrenched from the statutory language that follows it. The term “quarantine” is modified by the phrase “of diseased preserve whitetail.” See Iowa Code § 484C.12(1). It does not allow for quarantine of nondi-seased whitetail or whitetail that are not preserve whitetail.
The DNR argues the natural and logical reading would produce absurd results. The question arises whether the absurdity doctrine should be invoked here to support the DNR’s administrative rule and the DNR emergency order upon which it is based.
2. Overview of the doctrine of absurdity. The doctrine of absurdity has a good pedigree. Sutherland Statutory Construction, for instance, notes that ordinarily, ambiguous statutory language should be construed in a fashion that produces a reasonable result. 2A Norman J. Singer & Shambie Singer, Statutes & Statutory Construction § 45:12, at 104-06 (7th ed. rev. 2014) [hereinafter Statutory Construction]. But Sutherland goes further. According to Sutherland, courts may use a “variant of the ‘reasonableness’ rule even absent ambiguity ... when an act’s plain, clear, literal meaning produces an unintended, absurd result.” Id. at 115. Sutherland instructs that courts find it “fundamental” that departure from a literal construction is justified “when such a construction would produce an ‘unreasonable’ or ‘absurd’ or ‘unworkable’ or ‘unjust’ or ‘unlikely’ result clearly inconsistent with the purposes and policies of the act in question.” Id. at 115-19 (footnotes omitted).
It is important at the outset to distinguish between interpreting ambiguous statutes to avoid absurd results and declining to enforce the literal terms of a statute to avoid absurdity. It is universally accepted that where statutory terms are ambiguous, courts should interpret the statute in a reasonable fashion to avoid absurd results. See id. § 46:7, at 279 (“All courts apparently agree that a finding of ambiguity opens statutory construction to the full range of familiar, interpretive tools.”).
The true absurdity doctrine involves a different scenario. Under the absurdity doctrine, a court declines to follow the literal terms of the statute to avoid absurd results. See id. § 45:12, at 115. As noted by Sutherland, this is a different question from how courts proceed upon a finding of ambiguity. Id. Here is where the absurdity doctrine becomes controversial. To what extent may a court evade or ignore the literal terms of a statute to avoid a result that is not simply poor public policy, but is so unreasonable that it could not have been intended by the legislature and reflects the inherent limit of the legislative process to foresee various applications of a statute?
3.Caselaw from other jurisdictions applying absurdity doctrine. The cases of the United States Supreme Court have oscillated between a textual approach that hews to a close parsing of legislative texts and a more purposeful approach to the construction of statutes.
Support for the absurdity doctrine goes back as far as 1868. In United States v.
The Supreme Court considered another departure from the literal terms of a statute in Holy Trinity Church v. United States,
The Supreme Court revisited the absurdity doctrine in Public Citizen v. United States Department of Justice,
In a concurring opinion, Justice Kennedy presented a narrower version of the absurdity doctrine. Id. at 470-71,
Finally, although not labeled as the absurdity doctrine, the Supreme Court applied concepts similar to it in King v. Burwell, 576 U.S. -,
In King—unlike in Kirby, Holy Trinity, and Public Citizen where the broad terms of a statute were narrowly construed—the meaning of the statute was seemingly expanded beyond its literal meaning to save the statute from self-destruction. See id. The compelling gist of King is that statutes do not commit suicide. King thus amounted to a recognition that although “the plain language interpretation of a statute enjoys a robust presumption in its favor, it is also true that [a legislative body] cannot, in every instance, be counted on to have said what it meant or to have meant what it said.” FBI v. Abramson,
A factor pulsating through some federal absurdity cases is the desire to avoid constitutional conflict. Holy Trinity at least implies that the application of the statute to the hiring of the rector might raise First Amendment issues, see
As noted in commentary, although application of the absurdity principle is contested in federal courts, even those who advo
There is caselaw in many states that supports some form of the absurdity doctrine. See, e.g., Brock v. Townsell,
If anything, the case for the absurdity doctrine may well. be stronger in state courts than in federal courts. State legislatures generally meet on a part-time basis. They do not generally employ the mechanisms of extensive public hearings, markups, and staff review that have characterized congressional action in the past. Further, large volumes of state legislation are often passed in the waning hours of a legislative session, with a flurry of last minute amendments, thus increasing the possibility that legislation may be passed without a full linguistic vetting.
As an apparent response to suggestions that we cannot use tools of construction to depart from clear legislative text, we have sometimes utilized a circular work-around in which we declare that if the statute produces absurd results, it must be “ambiguous.” See Sherwin-Williams Co. v. Iowa Dep’t of Revenue,
A more straightforward description of the absurdity doctrine was presented in Case v. Olson, where we declared,
The court should give effect to the spirit of the law rather than the letter, especially so where adherence to the letter would result in absurdity, or injustice, or would lead to contradiction, or would defeat the plain purpose of the act, or where the provision was inserted through inadvertence.
We have engaged in a specific absurdity analysis on a number of occasions. For instance, in State v. Hoyman, we invoked the absurdity doctrine to narrow the scope of a statute that criminalized fraudulent practices in the context of public records.
Similarly, in Bearinger v. Iowa Department of Transportation, we considered whether a driver could invoke a prescription-drug defense before an administrative tribunal seeking to revoke her driver’s li
Finally, in Iowa Insurance Institute v. Core Group of Iowa Association for Justice, we construed the term “all information” to exclude work product, attorney work product, attorney-client, and other privileged materials.
In this case, however, we are not asked to narrow the scope of a statute, but to expand the scope beyond its plain meaning. This is the scenario presented in King, 576 U.S. -,
We also seem to have recognized that statutes should not contain the seeds of their own destruction. For instance, we have stated that “when a literal interpretation of a statute results in absurd consequences that undermine the clear purpose of the statute, an ambiguity arises.” Sherwin-Williams,
We have also recognized narrow construction to avoid constitutional problems. State v. McGuire,
In the end, we find the teaching of Sher-win-Williams is consistent with the vast majority of state and federal law and has continued vitality today. In Sherwin-Williams, we noted that “the absurd results doctrine should be used sparingly because it entails the risk that the judiciary will displace legislative policy on the basis of speculation that the legislature could not have meant what it unmistakably said.”
[E]ven in the absence of statutory ambiguity, departure from literal construction is justified when such construction would produce an absurd and unjust result and the literal construction in the particular action is clearly inconsistent with the purposes and policies of the act.
Id. (alteration in original) (quoting Pac. Ins.,
The bottom line is that the absurdity doctrine is well established in Iowa and elsewhere, though not always clearly articulated. It can be utilized, in rare cases, to overcome the plain meaning of the words of a statute. The doctrine, however, must be used sparingly and only in circumstances when the court is confident the legislature did not intend the result required by literal application of the statutory terms.
5. Discussion of applying the absurdity doctrine in this case. In light of these cases, we now turn to considering the meaning of Iowa Code section 484C.12. It expressly authorizes the DNR to engage in quarantine of “diseased preserve whitetail.” Iowa Code § 484C.12. There does not seem to be a lot of ambiguity here. The quarantine applies only if three requirements are present: diseased, preserve, and whitetail. Id. It would be a blue-is-red-type of interpretation to claim that the statute applies to nondiseased whitetail. And, the quarantine applies to whitetail, not to land.
We could, perhaps, escape the plain meaning of the words through an application of the absurdity principle. That is the fighting issue in this case. The DNR seeks through the absurdity doctrine to broaden inclusion of coverage. It is then akin to King, 576 U.S. at -,
But we do not see absurdity here. Indeed, it is not uncommon that the legislative process results in half measures. Further, the plain meaning of the statute, namely that quarantine applies only to “diseased preserve whitetail,” is not absurd. The DNR itself admits that a quarantine of the diseased animals is one step in a program of control of CWD. The record in this case established that CWD is of great concern in the game-hunting community, but there seems to be no clear consensus about the efficacy of various eradication efforts. After reviewing the record in this case, one does not emerge thinking, "Oh my gosh, that can’t be!” when considering the plain legislative language.
The linguistic focus in the Iowa statute on the animals rather than the land is found in other CWD regulatory regimes. For example, Illinois law authorizes a quarantine of a CWD-infected herd until
either the herd has been depopulated or there has been no evidence of CWD in the herd for five years from the date of the last case, and all animals that have died, been euthanized or been slaughtered in the herd during that period were examined for CWD.
Ill. Admin. Code tit. 8, § 85.120(e)(2) (Westlaw current through Ill. Reg. vol. 41, issue 21). There is no provision for quarantine after the herd has been depopulated.
We further note that at the time Iowa Code chapter 484C was enacted, there were other legislative models that distinguished between quarantine of animals and quarantine of land. For example, the North Carolina statute expressly authorizes the quarantine of exposed animals and affected premises within the state. N.C. Gen. Stat. § 106-401 (West, Westlaw current through S.L. 2017-17 of the 2017 Reg.
The fact that more might have been done does not make the grant of limited authority the legislature gave to the DNR absurd. Our task is to interpret the statute, not improve it. See Wells Fargo Bank v. Super. Ct.,
We also observe some of the features that may tend to support application of the absurdity doctrine are not present in this case. We note that the DNR asks us to expand, rather than retract, government power. While we have on occasion done so in the past under the absurdity doctrine, we think it is a more difficult argument to make than when, a statute is narrowed. If the legislature wants to assert new regulatory powers. over private landowners, it should do so expressly. Further, to the extent there are constitutional issues at stake here, they cut against a broad interpretation of the statute in light of the property interests of deer farmers.
F. Conclusion. We therefore conclude that Iowa Code section 484C.12 should be read according to its ordinary meaning. The consequence of this interpretation is that the agency lacked the statutory authority to promulgate the administrative rule expanding the scope of quarantines to include fencing of lands for a five-year period when all diseased preserve wildlife have been eradicated. As a result, the agency was without authority to issue the emergency order in this casé.
IV. Taking Under the Due Process Clauses of the United States or Iowa Constitutions.
A. Introduction. Under both the United States and Iowa Constitutions, the government is required to pay just compensation when it “takes” private property for public use. U.S. Const. amend. V; Iowa Const. art. I, § 18. The overarching purpose of the Takings Clause of the United States Constitution is “to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” Yancey v. United States,
The United States Supreme Court has recognized two different types of takings. The first type involves direct government seizure of property that amounts to “a practical ouster of [the owner’s] possession.” Lingle v. Chevron U.S.A., Inc.,
In their cross-appeal in this case, the Brakkes assert the district court erred in not finding the emergency order amounted to a regulatory taking under the United States and Iowa Constitutions that entitled them to just compensation.
B. Constitutional Provisions. The
Takings Clause of the Fifth Amendment of the United States Constitution provides that “private property shall not be taken for public use, without just compensation.” U.S. Const, amend. V. Article I, section 18 of the Iowa Constitution provides that “[p]rivate property shall not be taken for public use without just compensation first being made, or secured to be made to the owner thereof, as soon as the damages shall be assessed by a jury.” Iowa Const. art. I, § 18.
The Brakkes do not assert that the standard on takings under the Iowa Constitution is different than that under the federal takings constitutional counterpart. We therefore apply the established federal standards regarding takings, but reserve the right to apply these standards in a fashion different than the federal courts. State v. Kooima,
C. Positions of the Parties. Citing federal caselaw, the Brakkes point out that regulatory takings occur when the government (1) requires the owner to suffer a permanent physical invasion, no matter how minor; (2) completely deprives the owner of all economically beneficial use of her property; or (3) without sufficient justification requires an owner to dedicate a portion of property in exchange for a building permit. See Lingle,
The Brakkes argue the emergency order was a per se regulatory taking because the order required the Brakkes to maintain both the fence and the gates at Pine Ridge. In support of their argument, the Brakkes cite Loretto v. Teleprompter Manhattan CATV Corp.,
The Brakkes recognize the DNR’s physical invasions are not permanent. Nonetheless, the Brakkes point to two World War II era cases where the government’s condemnation of company premises amounted to compensable takings despite the temporary nature. Kimball Laundry Co. v. United States,
The Brakkes also argue that the emergency order is a regulatory taking because it is the functional equivalent of ousting the Brakkes from their property for a five-year period, or at least as long as the emergency order is in place. According to the Brakkes, the emergency order hollows out its right to “possess, use and dispose” of their property. Loretto,
Next, the Brakkes argue the emergency order qualifies as a taking because it strips the property of all economically beneficial use. The Brakkes point to Lucas, in which the Supreme Court stated that a property owner called upon “to sacrifice all economically beneficial uses in the name of the common good, that is, to leave his property economically idle, ... has suffered a taking.”
The DNR focuses its response on the question of whether a compensable taking occurred. With respect to the per se regulatory takings, the DNR asserts the record did not establish a permanent physical invasion and did not deprive the Brakkes of all economic benefit.
On the question of permanent physical invasion, the DNR emphasizes a parade of federal caselaw that stress physical invasions must be permanent, and not temporary, to be per se compensable under the Takings Clause. In particular, the DNR notes that in Loretto, the United States Supreme Court expressly distinguished between permanent and temporary invasions and held that a per se taking was present only when an invasion was permanent.
The DNR next addresses the question of whether the emergency order amounted to a per se taking because it deprived the Brakkes of all productive use of the hunting preserve. Citing Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency, the DNR asserts that in order to be a per se taking under this theory, the government action must deprive the property owner of “all economically beneficial use.”
The DNR argues that the Brakkes fail to show a deprivation of “all economically beneficial use” for two reasons. First, the DNR notes that a temporary taking is insufficient. In addition, the DNR points out that even on a temporary basis, the Brakkes have not been deprived of all economic interests, as the property can still be used for noneervid species, fishing, row crops, hay ground, timber harvest, bed and breakfast, or cattle pasture, among other uses. The DNR also points to an appraisal, which indicated the value of the Brakkes’ property due to the DNR’s regulatory effort fell from $1,056,000 to $891,000.
Having argued that the Brakkes failed to show a per se taking, the DNR turns to the question of whether the emergency order amounted to a regulatory taking under Penn Central. The DNR asserts that under the first Penn Central factor, the Brakkes failed to show the economic impact of the emergency order weighed in favor of finding a taking. The DNR stresses the relatively small diminution in the
Under the second Penn Central factor, the DNR suggests that investment-backed expectations do not weigh in favor of a taking. The DNR argues the Brakkes knew that hunting reserves were subject to regulation. The DNR notes, that for purposes of considering investment-backed expectation, the test is not whether a specific government regulation existed at the time of investment, but “[t]he critical question is whether extension of existing law could be foreseen as reasonably possible.” Cienega Gardens v. United States,
On the last Penn Central factor, the DNR argues that the character of the government action does not weigh in favor of a taking. The DNR points out that the Brakkes maintained possession of their property and maintained the right to possess, lease, or sell the property. The DNR points to the beneficent purpose of the regulation, namely, to prevent the spread of CWD. Finally, the DNR argues the duration of the quarantine was relatively brief and.the diminution in the property value was modest.
D. Discussion.
1. Overview of regulatory takings theories. The classic government taking requiring compensation is a direct appropriation of physical property, “or the functional equivalent of ‘a practical ouster of [the owner’s] possession.’” Lucas,
As can be seen by the positions of the parties, there are three types of regulatory takings at play: (1) a per se taking arising from a - permanent physical invasion of property, (2) a per se taking arising from regulation that denies the owner all economically beneficial ownership, and (3) a regulatory taking based on the balancing of the three Penn Central factors. Bormann v. Bd. of Supervisors,
2. Merits of a per se takings claim, involving “physical invasions of property” or deprivation of “all economically beneficial or productive use of land. ” We begin with a review of the takings law involving physical invasions by government regulation. A key case is Loretto,
The Loretto Court turned to the question of whether there was a permanent physical invasion under the facts presented. Id. at 438,
The concept that a regulation that deprived a property owner “of all economically beneficial or productive use” amounted to a per se taking was explored in Lucas,
The Lucas Court recognized that a com-pensable taking occurs when a regulation “denies an owner of all economically viable use of his land.” Id. at 1016,
The Supreme Court considered the question of whether a temporary taking that for a period of time deprived the owner of all economic benefit could be a per se taking. In First English Evangelical Lutheran Church of Glendale v. County of Los Angeles, the Supreme Court held for the first time that a landowner could recover damages for the temporary period during which a land-use regulation was effective.
In First English, the appellant church’s campground was flooded and its buildings destroyed.
The church brought a claim in California state court, arguing that the ordinance denied the church of all use of the campground and asking for just compensation. Id. at 308,
After a lengthy analysis of prior precedent, the Supreme Court found that where takings deny landowners all use of property, there is no real difference between temporary takings and permanent takings. Id. at 318,
The First English Court emphasized that its decision was limited to ordinances that deny the property owner all use of their property and not “normal delays in obtaining building permits, changes in zoning ordinances, variances, and the like which are not before us.”
While First English seems to stand for the proposition that temporary government actions that eliminate all economically viable use of the property are subject to a Fifth Amendment per se taking analysis, the Court significantly narrowed the holding of First English in Tahoe-Sierra,
The district court had concluded the Penn Central factors were not met, but that under First English,
The Tahoe-Sierra Court rejected a categorical, per se rule that temporary deprivations of all viable economic uses of the land necessarily gives rise to a takings claim. Id. at 321,
Based on the above authorities, we conclude the Brakkes have failed to establish a per se regulatory taking based on either a physical-invasion theory or an all economic-benefit theory. While the World War II vintage eases, buttressed by First English, might imply or suggest that a per se taking can arise from temporary takings, the more recent case of Tahoe-Sierra holds that temporary takings are not per se violations but are instead analyzed under the multifactor Penn Central test. Id. at 321,
3. Merits of a takings claim under a multifactored Penn Central balancing test. Penn Central involved the application of New York City’s landmark preservation law to the Grand Central Terminal.
The Penn Central Court, in summarizing its Fifth Amendment jurisprudence, emphasized there is no “set formula” for determining when concerns of “justice and fairness” require a private property owner to be compensated for economic injuries caused by a public action. Id. at 124,
Nevertheless, the Penn Central Court identified several factors of “particular significance.” Id.
The economic impact of the regulation on the claimant and, particularly, theextent to which the regulation has interfered with distinct investment-backed expectations are, of course, relevant considerations. So, too, is the character of the government action. A “taking” may more readily be found when the interference with property can be characterized as a physical invasion by government, than when interference arises from some public program adjusting the benefits and burdens of economic life to promote the common good.
Id. (citations omitted); accord Fitzgarrald v. City of Iowa City,
In Kaiser Aetna v. United States, the Court summarized the Penn Central factors as “the economic impact of the regulation, its interference with reasonable investment backed expectations, and the character of the government action.”
We, however, have generally considered the Penn Central test to be a two-part test, merging the first two factors described in Kaiser Aetna—
(1) “ ‘[t]he economic impact of the regulation on the claimant and, particularly, the extent to which the regulation has interfered with distinct investment-backed expectations[,]’ ” and (2) “the ‘character of the government action’— for instance whether it amounts to a physical invasion or instead merely affects property interests through ‘some public program adjusting the benefits and burdens of economic life to promote the common good.’ ”
Harms,
We now turn to apply the Penn Central test to the case before us. There is no doubt there has been an economic impact from the emergency order in this case. But the value of the land, as testified to by the DNR’s expert, has declined only 16.4%, generally not enough to weigh heavily in support of finding a taking. See CCA Assocs.,
While there is little doubt the Brakkes may have lost profits, the yardstick in a takings case is ordinarily lost value of the property taken. See Rose Acre Farms, Inc. v. United States,
Based on the evidence, we find the economic harm simply does not weigh in favor of a taking under Penn Central. The Penn Central approach is designed to give government authorities fairly wide berth in the regulation in the public interest. See
We now turn to the question of whether the DNR’s action interfered with distinct investment-backed expectations. The investment-backed expectations test is an objective one. Cienega Gardens,
Further, a reasonable investor would understand the presence of CWD in a hunting preserve could give rise to aggressive government action to curtail the spread of the disease. Notably, in Kafka v. Montana Department of Fish, Wildlife, and Parks, the Supreme Court of Montana noted that in considering investment-backed expectations in the context of a takings claim, “the regulated and speculative nature of a particular industry should be considered in determining whether investment-backed expectations are reasonable.”
As a result, we do not conclude the investment-backed expectations have been dramatically upset here. One of the downsides of entering a regulated field is that more intense regulation, particularly when threatening diseases are involved, may be in the offing. When diseases threaten industries, it is reasonable to expect that government may be awakened from its regulatory slumber.
Finally, we consider, as Penn Central directs, the character of government action. The purpose and importance of the government action are relevant under this Penn Central factor. See Rose Acre,
VI. Conclusion.
For the above reasons, we affirm the judgment of the district court.
AFFIRMED.
Notes
. The north half of the property was purchased by McBra, Inc. through a 1031 exchange, while Tom and Rhonda personally purchased the south half of the property. For the purposes of this appeal, the owners will be referred to as the Brakkes.
. Penn Cent. Transp. Co. v. City of New York,
. Both the DNR and the NRC were named as parties in the litigation. For convenience, we will collectively refer to both parties as the
. Like the district court, we decline to consider whether the DNR or NRC is entitled to defererice in the interpretation of the statute under Renda,
Concurrence Opinion
(concurring in part and dissenting in part).
I respectfully dissent with respect to Part III of the court’s opinion. I believe the court is taking an overly technical view of the underlying statutory authority provided to the Iowa Department of Natural Resources (DNR).
I do not share the majority’s view that the statute is clear and unambiguous. We read statutes as a whole. See In re Estate of Gantner,
If we read subsection 1 as limiting DNR’s authority strictly to the diseased deer themselves, we cannot account for subsection 2, which gives the DNR broader authority over a “landowner” to implement a plan to “eliminate the reportable disease” and prevent its spread “to other animals.” When we interpret a- statute, we try to harmonize its parts, Iowa Individual Health Benefit Reins. Ass’n v. State Univ. of Iowa,
The majority’s hypertechnieal interpretation of the statute proves too much. Note that the statute says “quarantine of diseased preserve whitetail,” not “quarantine of whitetail that may have been exposed to the disease.” Thus, under the majority’s view, DNR could only take action with respect to deer that currently have the disease, not to other deer on the farm that have been exposed to the disease. That is not all. Under the majority’s view, DNR could not require the landowner to disinfect areas of the farm where the diseased deer have been recently. Furthermore, once the diseased deer have died and their carcasses have been removed, DNR would be without authority altogether. If the majority is right, DNR’s authority would be limited strictly to the sick animals themselves and nothing else.
Furthermore, DNR has issued a regulation that clearly empowers DNR to do what it did. It provides, “A positive test result for chronic wasting disease will result in a minimum of a five-year quarantine on the preserve and all remaining animals located within the infected preserve.” Iowa Admin. Code r. 571-115.10. While Iowa Code section 484C.3 is a general grant of rulemaking authority,
I do not think it is “irrational, illogical, or wholly unjustifiable” to interpret section 484C.12 as giving DNR authority to require reasonable actions to prevent the spread of the disease based upon where the animals previously were in addition to simply moving the diseased animals themselves.
Additionally, this law operates in a public health area where the State historically has broad authority to act. “Unquestionably, the inherent police power of a state allows a state to establish quarantines to control disease in animals.” Johansson v. Bd. of Animal Health,
In Shinrone Farms, Inc. v. Gosch, we were asked to interpret an Iowa Code section relating to brucellosis control. See
Whenever the. balance of [the county brucellosis eradication] fund becomes less than twenty-five hundred dollars, the county auditor shall notify the department [of agriculture] in writing of such fact, and no expense shall be incurred on such account in excess of the cash available in such fund.
Iowa Code § 164.27 (1975). In 1977, the Sac County brucellosis eradication fund lacked sufficient funds to indemnify Shin-rone in full for a brucellosis control claim. Id. at 300. Following the farm’s commencement of litigation, the farm and the county entered into a settlement whereby levies for the benefit of the fund in the maximum amount would continue in future years and the fund would make payments to Shin-rone in future years, until Shinrone’s indemnity claim was paid off. Id. The attorney general, however, issued an opinion that “the county could not commit the fund, for successive years, to payment of the claim.” Id.
Courts must be sensitive to regulatory overreach. Government agencies should not issue a quarantine order that affects a landowner’s livelihood without a legitimate medical and scientific basis for doing so. Although.the parties strongly disagree as to the need for the measures ordered here, the conflicting scientific evidence was presented to the commission, which "upheld DNR’s order. The district court’s order, like today’s opinion, is based solely on DNR’s alleged lack of legal authority due to a crabbed reading of a statute. I’m not qualified to evaluate the science, but on the law I disagree with my colleagues.
For the foregoing reasons, I would reverse the district court’s judicial review order and reinstate the decision of the Natural Resource Commission.
Waterman, J., joins this concurrence in part and dissent in part.
. Under the majority’s view that Iowa Code section 484C.12 only authorizes DNR to isolate the diseased animals and do nothing else,
. I agree with DNR: "A spatial component is therefore implicit in the definition of quarantine.”
. Iowa Code section 484C.3 provides, "The department shall adopt rules pursuant to chapter 17A as necessary to administer this chapter.”
