Opinion ID: 2134925
Heading Depth: 1
Heading Rank: 5

Heading: Whether Department failed to give the proper deference to Board's decision and applied an incorrect standard of review.

Text: District argues that Department applied the incorrect standard of review. According to District, because Board was the original decisionmaker, Department must give deference to Board's factual determinations under SDCL 1-26-36 and reverse only if Board acted arbitrarily or capriciously, or abused its discretion. [1] The correct standard of review of administrative findings of fact and conclusions of law was discussed at great length in Permann v. South Dakota Dept. of Labor, 411 N.W.2d 113, 115-117 (S.D.1987). According to Permann, [w]hen the issue is a question of law, the decisions of the administrative agency and the circuit court are fully reviewable. When the issue is a question of fact, we ascertain whether the administrative agency was clearly erroneous. Id. at 116 (citations omitted); SDCL 1-26-36. While we agree this is the correct standard of review of Department by the trial court and this court under Permann, Kleinsasser v. City of Rapid City, 440 N.W.2d 734, 736 (S.D.1989), [2] this was not an appeal of a school board decision to the circuit court under SDCL ch. 13-46. SDCL 13-46-1; SDCL 13-46-6; Kellogg v. Hoven Sch. Dist. No. 53-2, 479 N.W.2d 147, 149 (S.D.1991) (In Dale v. Board of Education, Etc., 316 N.W.2d 108, 112 (S.D.1982), we stated `on appeal to the circuit court, pursuant to SDCL 13-46-6, the doctrine of separation of power limits the scope of review to that provided in SDCL 1-26-36.'). Rather, this was an appeal of a school board decision to the Department of Labor under SDCL ch. 3-18. See Rininger, 468 N.W.2d at 424-25 (noting that when Rininger's attempt to appeal Board's decision to circuit court under SDCL ch. 13-46 was dismissed, Rininger appealed to Department under SDCL ch. 3-18). Accordingly, the standard of review is found in SDCL 3-18-15.2, which provides: If, after following the grievance procedure enacted by the governing body, the grievance remains unresolved, except in cases provided for in § 3-6A-38, it may be appealed to the department of labor, if notice of appeal is filed with the department within thirty days after the final decision by the governing body is mailed or delivered to the employee. The department of labor shall conduct an investigation and hearing and shall issue an order covering the points raised, which order is binding on the employees and the governmental agency. Nothing in this section may be interpreted as giving the department of labor power to grant tenure or promotion to a faculty member employed by the board of regents. (Emphasis added.) Deference is not given to the school board's decision by the department in a grievance review under SDCL 3-18-15.2. In fact, it is hard to imagine how deference could be given by the department to board's factual determinations when there are no factual determinations in the record to review. Rather, the department issues a binding order based upon its own investigation and hearing. SDCL 3-18-15.2. See Kleinsasser, 440 N.W.2d at 738-39 (Henderson, J., concurring specially) (stating that in a grievance proceeding under SDCL 3-18-15.2, a complaint filed by a public employee is reviewed by the Department to determine if there is a violation of an existing agreement, policy, rule or regulation). [3] The circuit court and this court then review the department's findings of fact and conclusions of law under SDCL 1-26-36. Rininger, 468 N.W.2d at 426. See generally McCauley, 488 N.W.2d 53 (review of Department's findings and conclusions); International Union of Operating Eng'rs Local # 49 v. Aberdeen Sch. Dist. No. 6-1, 463 N.W.2d 843 (S.D.1990) (Appeal of School District decision to Department under SDCL 3-18-15.2. Jurisdiction of Department properly invoked. School was given the opportunity to, and did, defend itself as set forth in SDCL 3-18-15.2. School District proposed and objected to findings of fact and conclusions of law.). Department applied the correct standard of review and we affirm this issue.