Opinion ID: 1245393
Heading Depth: 1
Heading Rank: 4

Heading: Judicial Relief to be Granted.

Text: In the present case, the association's petition for judicial review asked the district court to review the record of the agency, take whatever additional evidence it deems appropriate, and thereafter hold that there was probable cause to hold a hearing and issue an Order commanding that the [board] correct its probable cause determination and hold a hearing on the complaint [and grant further appropriate relief]. On appeal, however, the association's request is more restricted; it requests that the board be ordered as a part of its probable cause determination process, [to] provide a statement of reasons that defines probable cause, that lists the facts that the Agency relied upon when making its determination, and otherwise provide an explanation of its decision so that the parties coming before the Agency under its complaint procedure understand the legal and factual basis for the Agency's probable cause decision. The Agency's decision should contain sufficient information so that parties and, if necessary, the courts can evaluate the decision of the Agency in light of the grounds for appeal contained in [Iowa Code section 17A.19].... We believe the board should have furnished a statement of reasons for its refusal to act that was more specific than its mere declaration that no probable cause was established. Specificity in the no-probable-cause decision is anticipated by the board's rules, which provide: If a determination is made by the board to reject the case, the complaint shall be returned to the complainant along with a statement specifying the reasons for rejection.  Iowa Admin. Code r. 282-11.6(1) (emphasis added). We believe this requires more information than the board furnished here. A statement of reasons for the board's declination to act not only satisfies the rule's requirement that the board provide reasons for its refusal to act, but it should also provide the necessary guidelines for a reviewing court as suggested by Bachowski. See Bachowski, 421 U.S. at 571, 95 S.Ct. at 1860, 44 L.Ed.2d at 388-89. Bachowski, like the present case, involved a judicial challenge to an agency's refusal to act on a complaint involving a union election. In Bachowski the agency's determination not to sue was based on the agency's investigation mandated by 29 U.S.C. § 482(a)(2): The Secretary shall investigate such complaint and, if he finds probable cause to believe that a violation of this subchapter has occurred and has not been remedied, he shall, within sixty days after the filing of such complaint, bring a civil action against the labor organization as an entity in the district court of the United States.... Bachowski, 421 U.S. at 563-64, 95 S.Ct. at 1856, 44 L.Ed.2d at 385. In Bachowski, the agency advised the complainant of its refusal to act in a letter to the complainant, which stated in a conclusory manner (similar to the statement in the present case) that, based on the investigative findings, it has been determined that civil action to set aside the [union] election [as requested by the complainant] is not warranted. Id. at 563, 95 S.Ct. at 1856, 44 L.Ed.2d at 384 (alterations in original omitted). The agency gave no rationale for its decision (until later ordered to do so by the court of appeals [2] ). The complainant in Bachowski reacted to the agency's refusal to act by filing an action to challenge the secretary's decision as arbitrary and capricious, asking the court to force a new election. The district court ruled it had no authority to do so. The Supreme Court ultimately held that the agency's order refusing to take action was reviewable under the federal administrative procedure act. It approved the holding of the court of appeals that the scope of judicial review... to insure that the Secretary's actions are not arbitrary, capricious, or an abuse of discretionentitled [complainant], who sought to challenge the factual basis for the Secretary's conclusion either that no violations occurred or that they did not affect the outcome of the election, to a sufficiently specific statement of the factors upon which the Secretary relied in reaching his decision so that [complainant] may have information concerning the allegations contained in his complaint. Bachowski, 421 U.S. at 564-65, 95 S.Ct. at 1857, 44 L.Ed.2d at 385 (emphasis added) (citations omitted). The Court held, however, that judicial review does not authorize a trial-type inquiry into the factual bases of the Secretary's conclusion that no violations occurred affecting the outcome of the election. Id. at 566, 95 S.Ct. at 1857, 44 L.Ed.2d at 385. The Court then noted that, to enable the reviewing court intelligently to review the Secretary's determination, the Secretary must provide the Court and the complaining witness with copies of a statement of reasons supporting his determination. [W]hen action is taken by [the Secretary] it must be such as to enable a reviewing Court to determine with some measure of confidence whether or not the discretion, which still remains in the Secretary, has been exercised in a manner that is neither arbitrary nor capricious.... [I]t is necessary for [him] to delineate and make explicit the basis upon which discretionary action is taken, particularly in a case such as this where the decision taken consists of a failure to act.... Bachowski, 421 U.S. at 571, 95 S.Ct. at 1860, 44 L.Ed.2d at 389 (alterations in original) (first omission in original) (quoting DeVito v. Shultz, 300 F.Supp. 381, 383 (D.C.1969)). Under chapter 272, the board should be free to exercise its discretion and expertise without interference from the courts. These powers must, however, be exercised in a manner that is not arbitrary or capricious, and a court must be satisfied that is the case. The court can only make that determination if the board's statement of reasons provides the necessary information as to how the agency power was exercised. That is the function of the statement of reasons to be provided by the agency. See Bachowski, 421 U.S. at 571, 95 S.Ct. at 1860, 44 L.Ed.2d at 389. We hold the board's conclusory statement, that the evidence is insufficient to constitute probable cause, is inadequate to allow a court to discern the board's interpretation of probable cause or whether, in applying that test, the board acted arbitrarily or capriciously. We therefore reverse and remand to the district court for an order directing the board to furnish a statement of reasons sufficient to explain the board's interpretation of the probable-cause requirement and its application to the facts as determined by its investigation. If the court then determines the board did not act arbitrarily or capriciously, that will be the end of the matter subject, of course, to the right of appeal. If, based on this statement of reasons the court finds the board acted arbitrarily or capriciously, it shall reverse and remand to the agency for further proceedings. REVERSED AND REMANDED.