Opinion ID: 2221881
Heading Depth: 2
Heading Rank: 2

Heading: Proof of Reasonableness of Costs.

Text: The district court instructed the jury that the Board was required to prove the reasonableness of the corrective action costs. The Board alleges that a presumption of reasonableness should attach to any corrective action expenditures under the Tank Fund Act and Shell should have the burden to prove any expenditures or estimates were unreasonable, arbitrary, or capricious. The Board correctly points out that it is required to determine the reasonableness of the corrective action costs before making payment. See Iowa Code § 455G.12(a). Additionally, all contracts to clean up petroleum releases are subject to public bidding requirements. See id. §§ 455G.4(4), .5. This helps ensure that those required to pay for the work are given the best possible performance at the lowest price. See Weiss v. Incorporated Town of Woodbine, 228 Iowa 1, 11, 289 N.W. 469, 474 (1940) (competitive bidding is required to obtain contracts at the most reasonable, economical and practical cost in having the work economically done). Furthermore, there is a recognized presumption, absent evidence to the contrary, that public officials will carry out their duties in a prudent, proper manner. See Janson v. Fulton, 162 N.W.2d 438, 442 (Iowa 1968). Nevertheless, we do not believe the Board's obligation to enter into fair and equitable contracts at usual and customary rates necessarily impacts the burden of proof in a subsequent action by the Board to recover costs from a responsible party. It is fundamental to our legal system that the burden of proof in an action ordinarily rests with the party who is seeking recovery. Verschoor v. Miller, 259 Iowa 170, 175, 143 N.W.2d 385, 388 (1966); see also Iowa R.App. P. 14(f)(5). This principle is consistent with the notion that the burden should normally rest with the party who has the greater access to the proof. See In re Mt. Pleasant Bank & Trust Co., 455 N.W.2d 680, 685 (Iowa 1990); Haynes v. Dairyland Mut. Ins. Co., 199 N.W.2d 83, 85 (Iowa 1972). In this case, the Board requested recovery of costs, and acknowledged recovery under the Tank Fund Act was limited to reasonable and necessary costs. It has the greater access to the information to show those steps taken to ensure the reasonableness of the corrective action costs. Thus, we believe the Board has the burden to establish the reasonableness of the costs, and the accompanying presumptions are available to the Board as an aid in meeting this burden. The presumptions, however, do not eliminate or shift the burden of proof.