Opinion ID: 1834031
Heading Depth: 1
Heading Rank: 3

Heading: Facts Outside Administrative Record

Text: The DOT argues that the district court's reliance on evidence which the administrative law judge did not consider was error since statutes and case law mandate that the court act in an appellate capacity when reviewing agency decisions. McMahon argues that even though it was improper for the district court to consider the additional evidence, a remand back to the agency would have wasted time since the additional evidence would not have changed the administrative law judge's decision. It was clearly improper for the district court to consider the additional evidence. Iowa Code section 17A.19(7) (1993) provides for two different district court treatments of evidence the parties wish to present for the first time after an agency has entered a final decision. If the case involves judicial review of agency action in a contested case, a court shall not itself hear any further evidence with respect to those issues of fact whose determination was entrusted by ... statute to the agency in that contested case proceeding. Id. In such cases, the law limits court review to the agency's record. Heartland Lysine v. Department of Revenue and Fin., 503 N.W.2d 587, 588 (Iowa 1993); Mary v. Iowa Dep't of Transp., 382 N.W.2d 128, 131 (Iowa 1986); Maschino v. Geo. A. Hormel & Co., 372 N.W.2d 256, 258 (Iowa 1985). If the case involves judicial review of other agency action, the reviewing court may consider such evidence as it deems appropriate. Iowa Code § 17A.19(7); Krause v. State ex rel. Iowa Dep't of Human Servs., 426 N.W.2d 161, 165 (Iowa 1988). A contested case is a proceeding in which `the legal rights, duties or privileges of a party are required by ... statute to be determined by an agency after an opportunity for an evidentiary hearing.' Purethane, Inc. v. Iowa State Bd. of Tax Review, 498 N.W.2d 706, 708 (Iowa 1993) (quoting Iowa Code § 17A.2(2)). In cases involving revocation of an individual's license plates, a permitee is entitled to an evidentiary hearing in which an administrative law judge sits as finder of fact and renders a determination regarding the person's legal rights. See 761 Iowa Admin.Code 400.56(321) (1994). Therefore, the case at issue is a contested case within the definition of Iowa Code chapter 17A. Section 17A.19 provides a specific mechanism for the admission of additional evidence following a final agency determination. The section requires a party to apply to the district court for admittance of such evidence before the date set for consideration of the party's petition for judicial review. Iowa Code § 17A.19(7). If the court determines that the additional evidence is material and the party had good reason for failing to present the evidence before the agency, section 17A.19(7) requires the court to remand the matter to the agency for a new determination. Id. This statutory mandate does not allow a reviewing court itself to consider evidence the parties failed to present before the agency when the matter is a contested case. The district court acted improperly in considering this additional evidence. Although the court erred, we do not need to remand this matter to the district court for further proceedings. Mary, 382 N.W.2d at 131. Instead, we will review the agency action as the district court should have pursuant to sections 17A.19(7) and (8). Mary, 382 N.W.2d at 131. In response to McMahon's request for admission of the additional evidence, we find that the existence of license plates reading LICKHER and 3MTA30 is not material to a determination of this matter. See Iowa Code § 17A.19(7); Avery v. Peterson, 243 N.W.2d 630, 634 (Iowa 1976). Moreover, no showing was made to justify the failure to present this evidence at the agency hearing. See Hollensbe v. Iowa Dep't of Job Service, 418 N.W.2d 77, 80 (Iowa App.1987). Therefore, remand to the agency is not necessary.