FOR PUBLICATION
ATTORNEYS FOR APPELLANTS: ATTORNEYS FOR APPELLEE:
E. SCOTT TREADWAY JEFFREY A. MODISETT
KEVIN M. KOHART Attorney General of Indiana
Lowe Gray Steele & Darko, LLP
Indianapolis, Indiana BARBARA GASPER HINES
BETH H. HENKEL
Deputy Attorneys General
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
SAVE THE VALLEY, INC., THOMAS )
BREITWEISER and L. JAE BREITWEISER, )
)
Appellants-Plaintiffs, )
)
vs. ) No. 49A02-9904-CV-266
)
THE INDIANA DEPARTMENT OF )
ENVIRONMENTAL MANAGEMENT and )
JOHN HAMILTON in his official capacity as )
Commissioner of the Indiana Department of )
Environmental Management, )
)
Appellees-Defendants. )
APPEAL FROM THE MARION SUPERIOR COURT
The Honorable Richard P. Good, Special Judge
Cause No. 49F12-9809-CP-3118
February 29, 2000
OPINION - FOR PUBLICATION
KIRSCH, Judge
Save the Valley, Inc., Thomas Breitweiser, and L. Jae Breitweiser (collectively STV) appeal
the decision of the trial court to dismiss their suit against the Indiana
Department of Environmental Management (IDEM), raising numerous issues for review. We address
one, which we find dispositive: whether the trial court erred in determining
that it lacked jurisdiction to decide the controversy because STV had failed to
exhaust its administrative remedies.
We affirm.
FACTS AND PROCEDURAL HISTORY
Save the Valley, Inc. is a not for profit corporation whose purpose is
to protect and improve the environment in a portion of the Ohio River
Valley that includes Jefferson County, Indiana. The Breitweisers are landowners in Jefferson
County. In May 1997, David Ferguson applied for a permit to construct
a confined animal feeding operation (CAFO) on his property in Jefferson County.
CAFOs are large, industrial hog farms.
In September 1997, STV brought suit challenging Fergusons application and arguing that the
statute giving IDEM the authority to review and evaluate CAFO applications was unconstitutional.
STV sought a declaratory judgment that the statute was unconstitutionally vague because
IDEM had failed to enact regulations for CAFO applications. Specifically, STVs complaint
asked the trial court to declar[e] that [IC] 13-18-10
et seq., as amended
in 1997, violates the Indiana Constitution and Constitution of the United States and
is void and of no force or effect; [and] declar[e] that IDEM is
required to adopt specific rules and regulations relating to the permitting and operation
of CAFOs and the enforcement of [IC] 13-18-10 et seq. (1997) prior to
processing, considering and approving any CAFO application. Record at 34.
In April 1998, Ferguson withdrew his application, then reapplied later that month.
IDEM approved his application in July 1998.
IDEM moved to dismiss STVs suit. On November 24, 1998, the trial
court issued findings of fact and conclusions thereon dismissing STVs complaint. STV
now appeals.
DISCUSSION AND DECISION
The trial court granted IDEMs motion to dismiss for lack of subject matter
jurisdiction. When a party seeks dismissal of a case pursuant to Indiana
Trial Rule 12(B)(1) for lack of subject matter jurisdiction, the trial court must
decide whether it possesses the authority to further adjudicate the action. Common
Council of City of Hammond v. Matonovich, 691 N.E.2d 1326, 1328 (Ind. Ct.
App. 1998), trans. denied. In making this determination, the trial court may
consider evidence outside the pleadings. In re R.P.D. ex rel. Dick, 708
N.E.2d 916, 919 (Ind. Ct. App. 1999), trans. denied. The trial court
must immediately resolve factual disputes that bear on its jurisdiction. Id.
Where the facts are not in dispute, however, this court reviews the trial
courts decision de novo. Matonovich, 691 N.E.2d at 1328.
The trial court entered special findings of fact and conclusions of law pursuant
to IDEMs request. Where a trial court has made special findings pursuant to
a partys request under Trial Rule 52(A), the reviewing court may affirm the
judgment on any legal theory supported by the findings.
R.P.D., 708 N.E.2d
at 919. In reviewing the judgment, we must first determine whether
the evidence supports the findings and second, whether the findings support the judgment.
Id. The judgment will be reversed only when clearly erroneous.
Id. Findings of fact are clearly erroneous when the record lacks any
facts or reasonable inferences to support them. Lawson v. Raney Mfg., Inc.,
678 N.E.2d 122, 126 (Ind. Ct. App. 1997), trans. denied. In determining
whether the findings of fact are clearly erroneous, we consider the evidence most
favorable to the judgment along with the reasonable inferences to be drawn therefrom.
Id. This court neither reweighs the evidence nor assesses the credibility
of the witnesses. Id.
STV first argues that the trial court erred in determining that it lacked
subject matter jurisdiction because STV had failed to exhaust all administrative remedies.
It argues that there are no administrative remedies to exhaust and that it
was not required to exhaust administrative remedies before filing the instant action.
Where an administrative remedy is available, such remedy must be pursued before the
claimant is allowed access to the courts.
Johnson Oil Co. v. Area
Plan Commn of Evansville & Vanderburgh County, 715 N.E.2d 1011, 1014 (Ind. Ct.
App. 1999). In such cases, the administrative agency is said to have
primary jurisdiction. Id. The rationale underlying this policy is that administrative
bodies have specialized expertise and are better suited to adjudicate the dispute.
State v. Sproles, 672 N.E.2d 1353, 1358 (Ind. 1996). In considering whether
to invoke the doctrine of primary jurisdiction in the case of an issue
that can be considered by either the trial court or the agency, the
decision is within the discretion of the trial court. Johnson Oil, 715
N.E.2d at 1014. The relevant factors include what sort of facts will
arise, whether the factfinding involved is within the special expertise of the agency,
the degree to which uniformity is desirable, and the effect a court decision
would have on desirable uniformity. Id. A partys failure to
exhaust its administrative remedies creates a jurisdictional defect and makes a motion to
dismiss for lack of subject matter jurisdiction appropriate. Matonovich, 691 N.E.2d at
1328-29.
The legislature has statutorily delegated the process of granting CAFO permits to IDEM.
IC 13-18-10-1 states that a person may not start construction of a
CAFO without first obtaining the approval of IDEM. IC 13-18-10-2 sets out
the information that the application must contain, including plans and specifications for the
manure treatment facilities, a manure management plan, and maps of manure application areas.
In addition, the statute provides that IDEM can require a CAFO applicant
to submit additional information about the proposed site, including topography, soil, drainage, identification
of ditches and bodies of water, field tiles, land application areas, location of
manure treatment facilities, and location of water wells on the site. IC
13-18-10-2. The statute also provides that IDEM can make any additional investigation
it deems necessary in considering the application. IC 13-18-10-2.1(a)(2). Further, IDEM
may amend or revoke an approval if needed to prevent discharges of manure
into the environment that pollute or threaten to pollute water. IC 13-18-10-2.1(e)(2).
The nature of the information described demonstrates that the legislatures purpose in
giving this responsibility to IDEM is to enable IDEM, the agency with specialized
expertise in evaluating environmental impacts, to review all CAFO applications for possible adverse
impacts on surrounding land. It would therefore appear that IDEM has primary
jurisdiction over all challenges to CAFO applications.
Nonetheless, STV argues that it has no administrative remedies to exhaust because it
is raising an issue of constitutional law, which IDEM has no authority to
entertain. In
Town Board of Orland v. Greenfield Mills, Inc., 663 N.E.2d
523 (Ind. 1996), landowners filed suit to enjoin a town from constructing a
sanitary sewer system. The trial court granted the preliminary injunction, but the
supreme court reversed. The court examined the issues in the case to
determine if any fell within the jurisdiction of the trial court. Id.
at 525. It noted that the landowners sought injunctive relief only for
prospective harm to the environment in general and to the landowners private property
rights. The court then looked at the statutory provisions concerning IDEMs authority
to grant permits for water pollution control or sewage treatment plants. The
court noted that the statute provided for judicial review of agency decisions and
that the primary purpose of the statute is protection of the environment.
Id. at 527. Thus, the court concluded that it appears that the
statute here gives IDEM authority over precisely that which landowners seek and, if
so, divests the trial court of subject matter jurisdiction over landowners complaint.
Id.
The court rejected the landowners contention that there were no administrative remedies to
exhaust in their case because their complaint raised constitutional issues over which IDEM
had no authority. The court noted that although the landowners phrased their
complaint in terms of trespass, nuisance, and taking, in essence what they asked
of the trial court was to prevent the construction of the sewage treatment
project and the consequent environmental damage they believed would occur. This was
precisely the province of IDEM under the statute. Thus, the trial court
held that the trial court had no jurisdiction to entertain this suit.
Id.
Likewise, in this case, STV phrases its argument in terms of whether the
CAFO statute is unconstitutionally vague and complains of the damage to the environment
in general and their property in particular which they believe Fergusons intended CAFO
will occasion. The essence of their complaint is that they are
asking the trial court to void the CAFO permit IDEM issued to Ferguson,
and indeed, to prohibit IDEM from issuing CAFO permits altogether. STV argues
that Fergusons CAFO will harm the environment and its property interests. However,
the legislature has already addressed the potential for such harms. Protecting the
environment from the potential hazards CAFOs might create is the express purpose of
the CAFO statute. The decision to issue CAFO permits is a matter
entrusted to IDEM by the General Assembly. In light of the strong
policy reasons for favoring resolution of potential pollution issues by IDEM, the agency
with the necessary specialized knowledge to evaluate factual disputes, we see no reason
why STVs constitutional question should not first be resolved by agency adjudication.
The trial court did not abuse its discretion in dismissing STVs suit for
lack of subject matter jurisdiction.
STV also argues that it is not required to exhaust its administrative remedies
in this case under the holding of this court in
Indiana Dept of
Environmental Management v. Chemical Waste Management of Indiana, Inc., 604 N.E.2d 1199 (Ind.
Ct. App. 1992), trans. denied (1993). In that case, Chemical, the owner
of a hazardous waste disposal site brought a declaratory judgment action that IDEMs
practice of applying the good character law retroactively to its pending application for
a permit was impermissible and vague. IDEM sought to have the suit
dismissed, arguing that Chemical failed to exhaust administrative remedies because it had not
yet finished reviewing Chemicals application. This court held that the trial court
did not err in denying IDEMs motion to dismiss because Chemicals complaint challenged
the constitutionality of the law and the legality of applying it retroactively.
Because Chemical was not seeking review of IDEMs anticipated determination of its character,
but was instead contesting an IDEM policy, we held that the trial court
did not abuse its discretion in allowing Chemical to maintain its suit for
declaratory judgment without first having submitted to agency review. Id. at 1203.
While we agree with the principles enunciated in Chemical Waste, one essential difference
between it and the present case renders it inapplicable here. In Chemical
Waste, the party challenging IDEMs procedures in reviewing permits was the applicant itself.
Thus, any determination of the constitutionality of the law and the procedures
enacted thereunder would have a direct effect on the rights and status of
the party seeking declaratory judgment. The retroactive application of the law would
cause an additional burden on the applicant and delay the application process.
Here, there is no such effect. STV is not directly affected by
the CAFO statute and permitting procedures. Only applicants are directly impacted by
IDEMs procedures in granting or denying CAFO permits. Therefore, Chemical Waste is
distinguishable. The trial court did not abuse its discretion in dismissing STVs
complaint.
See footnote
Affirmed.
SHARPNACK, C.J., and RILEY, J., concur.
Footnote:
STV also contends that a number of the trial courts findings of
fact and conclusions of law are clearly erroneous. The findings of fact
STV challenges pertain to the issue of STVs standing to bring the instant
suit. Because we have held that STV has failed to exhaust its
administrative remedies, this issue is moot. STV also argues that the trial
courts conclusions that Town Board of Orland, not Chemical Waste, applies here is
erroneous. We agree with the trial courts analysis, as set out above.
We also agree with the trial courts conclusions that cases that should
be resolved on non-constitutional grounds where possible, and that the Office of Environmental
Adjudication should first determine whether IDEM correctly applied the CAFO statutes. These
conclusions merely underscore the trial courts determination that STV has not exhausted its
administrative remedies. The trial courts findings and conclusions are not clearly erroneous.
The trial court did not err in dismissing STVs complaint.