Opinion ID: 1281896
Heading Depth: 2
Heading Rank: 3

Heading: failure to exhaust administrative remedy

Text: We turn next to the argument that Dupere's claim is barred by failure to exhaust his administrative remedy. In State v. ZIA, Inc., 556 P.2d 1257 (Alaska 1976), we recognized the legislative policy embodied in AS 09.50.250 that actions against the state should first be considered by the affected administrative agency. We noted, however, that the procedures in AS 09.50.250 are not jurisdictional. 556 P.2d at 1263. Thus, in a proper case a court may exercise its discretion and provide judicial relief without requiring the claimant to exhaust his administrative remedies. See State, Department of Labor v. University of Alaska, 664 P.2d 575, 581 (Alaska 1983) (doctrine of exhaustion not applicable to proceeding on wage claim filed with Department of Labor when claimant challenged the agency's jurisdiction); Id. at 582 n. 1 (Rabinowitz, J., dissenting) (one of the key factors affecting applicability of the exhaustion doctrine is the extent of injury from pursuit of administrative remedy); Univar Corp. v. City of Phoenix, 594 P.2d 86, 90 (Ariz. 1979) (exhaustion of remedies rule should not be summarily applied in cases in which the agency's jurisdiction is being contested, the agency's expertise is unnecessary, or irreparable harm will be caused if the rule is followed). In the case at bar, the superior court ruled, incorrectly, that AS 44.77 was not applicable. We, nevertheless, affirm the court's judgment. Although AS 44.77 applies to Dupere's claim, we think this is an appropriate case in which to waive the exhaustion requirement. AS 44.77 has not previously been construed to apply to non-executive branch claims; hence we do not believe that Dupere should be penalized for acting on a reasonable interpretation of the statute. Dupere's one-year delay in filing this suit was not unreasonable given his assumption that the six-year statute of limitations for contract actions was applicable to his case. This is not a case where the claimant ignored the administrative process entirely. To the contrary, Dupere requested payment from the Legislative Council and subsequently sought reconsideration when that claim was denied. An investigation ensued. We believe that it was reasonable for Dupere to assume he had satisfied the appropriate internal legislative procedures. While we could still require an administrative appeal, neither the policy behind the exhaustion of administrative remedies requirement nor the interests of justice would be served. See State, Department of Labor, 664 P.2d at 581. In Zia, 556 P.2d at 1263, we recognized that the procedures of AS 09.50.250 embody a policy that actions against the state should be considered first by the affected agency. In Dupere's case, the Legislative Council appointed a committee to investigate his claim, and made a decision based on that committee's findings. At this point, there is no pressing policy reason for forcing Dupere to comply with the formal requirements of AS 44.77. Additionally, there has been a jury trial. It would be inefficient to annul the results of the trial and send Dupere back to the administrative level, since he would still have the right to a de novo trial under AS 09.50.250 if he disagreed with the administrative decision and brought suit within thirty days of the decision. AS 44.77.040(c). Therefore, we hold that the procedures of AS 44.77 apply to specific claims against the three branches of government. Dupere will not be required to exhaust his administrative remedies nor have his case dismissed for failure to do so. The jury verdict in the case stands. [5]