Racine Harley-Davidson, Inc. v. State Division of Hearings & Appeals
Racine Harley-Davidson, Inc. v. State Division of Hearings & Appeals
Concurring Opinion
¶ 98.
(concurring). The majority opinion provides a valuable analysis of our standard of review for various administrative decisions. It includes a discussion of when we afford great weight deference to an agency's interpretation of law. I join the opinion and write separately only to reference my
Concurring Opinion
¶ 99. {concurring). The majority opinion concludes that the sales territory serviced by Racine Harley-Davidson, Inc. (Racine H-D) is part of its "motor vehicle dealer agreement" under Wis. Stat. § 218.0166(8)(a) (2003-04).
I. BACKGROUND
¶ 100. Racine H-D has been a franchised Harley-Davidson Motor Company (Harley-Davidson) dealer since 1992. As part of its relationship with Harley-Davidson, Racine H-D has agreed to service specific geographic areas that are referred to as Racine H-D's
¶ 101. However, in 2001 when Harley-Davidson provided a new franchise agreement, the Burlington zip code was not included in Racine H-D's Territory. Racine H-D claimed that removing Burlington from its Territory was a modification of its franchise agreement that substantially and adversely affected its rights as a Harley-Davidson motor vehicle dealer and that the modification was made without good cause. It filed a complaint with DOT, alleging a violation of Wis. Stat. § 218.0116(8).
¶ 102. The complaint was referred to the DHA to adjudicate, as authorized by statute, Wis. Stat. § 218.0116(8)(a), and a DHA hearing examiner was assigned to adjudicate it, Wis. Stat. § 227.43(l)(bg). The DHA hearing examiners are assigned to hear contested case proceedings from many different line agencies.
¶ 103. Harley-Davidson moved for summary judgment to dismiss the complaint. It contended that Racine H-D's Territory was not a part of its "motor vehicle dealer agreement," as those terms are used in Wis. Stat. § 218.0116(8); and therefore, assigning the Burlington zip code to another dealer did not contravene § 218.0116(8). The hearing examiner agreed with Harley-Davidson because the description of Racine H-D's Territory was not contained within the Harley-Davidson Motor Company Motorcycle Dealer Contract (Dealer Contract) or the Harley-Davidson Motor Company General Conditions of Sales and Service (Conditions of Sales and Service) that the parties signed. The DHA administrator affirmed the decision of the hearing examiner. It is the decision of the DHA administrator, granting summary judgment dismissing Racine H-D's complaint, that is before us for review.
II. DISCUSSION
A. Standards of Review
1. Statutes
¶ 104. Statutory construction is a question of law. Buettner v. DHFS, 2003 WI App 90, ¶ 6, 264 Wis. 2d
¶ 105. Due weight deference requires that the legislature has charged the agency with the administration of the statute in question and that the agency has had at least some experience interpreting the statute in a consistent fashion. Id. at 286-87. In according due weight deference, we defer to an agency's statutory interpretation only when we conclude that another interpretation of the statute is not more reasonable than that chosen by the agency. Id. at 287. In order to decide that question, we make a comparison between the agency's interpretation and alternate interpretations. This comparison requires us to construe the statute ourselves. In so doing, we employ judicial expertise in statutory construction, and we embrace a major responsibility of the judicial branch of government, deciding what statutes mean. Therefore, this level of deference is of a lesser concern than is great weight deference.
¶ 106. Great weight deference also requires that the legislature has charged the agency with the administration of the statute in question. Id. at 284. Additionally, in order to accord great weight deference, the agency must have long standing expertise in administering the statute; it must have used its expertise and specialized knowledge in forming its interpretation of the statute; and the agency's interpretation must pro
¶ 107. Our basis for giving even due weight deference to an agency's statutory interpretation is bottomed on two required assumptions: the statute is one that the agency was charged with administering and the agency has at least some expertise in the interpretation of the statute in question. UFE, 201 Wis. 2d at 284-86.
¶ 108. The majority opinion concludes the first assumption, that the DHA was charged with administering Wis. Stat. § 218.0116(8), applies. Majority op., ¶ 55. It also concludes that the DHA is charged with enforcing § 218.0116(8). Id. I conclude that neither conclusion pertains here. First, the type of legislatively assigned responsibility of a deciding authority for a line agency to which we previously have accorded deference, e.g., LIRC, has been limited to the discrete statutory context that the line agency, itself, administered. See, e.g., West Bend Educ. Ass'n v. WERC, 121 Wis. 2d 1, 11-13, 357 N.W.2d 534 (1984) (concluding that the agency (WERC) can provide uniformity and consistency in the field of its specialized knowledge); Jicha v. DILHR, 169 Wis. 2d 284, 290-91, 485 N.W.2d 256 (1992) (concluding that deference to an agency's statutory interpretation is appropriate only where the interpretation is based on the specialized knowledge, technical competence and experience particular to the agency (LIRC)).
¶ 109. Second, in cases brought to the DHA for a hearing, the DHA administrator makes the final agency decision that is then subject to judicial review under Wis. Stat. § 227.52. Wis. Stat. § 227.46(2m). However, the DHA administrator does not have the type of specialized knowledge and technical competence of other deciding
¶ 111. In my view, these legislative changes have shifted the factual underpinnings that we employed in our decisions to accord deference to an agency's statutory interpretation.
¶ 112. The majority opinion also concludes that the common law levels of deference "are in accord with Wis. Stat. § 227.57(10)," majority op., ¶ 13, and that this shows the "legislature has thus entrusted responsibility to the agencies." Id. I disagree with both assertions. As an initial matter, there is no indication in § 227.57
2. Contracts
¶ 114. This case also presents a question of contract interpretation. Therefore, I address the standard of review to be accorded an agency decision that turns on contract construction. Construction of a contract is a question of law to which we give no deference to the decision of an administrative agency. See Wisconsin End-User Gas Ass'n v. PSC, 218 Wis. 2d 558, 565, 581 N.W.2d 556 (Ct. App. 1998) (concluding that the courts are more experienced in contract construction than are administrative agencies).
B. Interpretation of Wis. Stat. § 218.0116(8)
¶ 115. The DHA administrator affirmed the decision of the DHA hearing examiner who interpreted the terms "motor vehicle dealer agreement" in Wis. Stat. § 218.0116(8) (a) as not including Racine H-D's Territory.
¶ 116. "Contract" is not defined in ch. 218; however, "contract" is a legal term of art to which courts apply an accepted meaning. Wis. Citizens Concerned for Cranes & Doves v. DNR, 2004 WI 40, ¶ 6, 270 Wis. 2d 318, 677 N.W.2d 612; see also Wis. Stat. § 990.01 (explaining that legal terms of art are to be given then-accepted legal meanings). A "contract" has been defined generally as an agreed set of "obligations that are enforceable or otherwise recognizable at law." Black's Law Dictionary 341 (8th ed. 2004).
¶ 117. The terms that make up a contract can be ascertained by employing well-settled legal principles of contract construction. Therefore, I would give no common law deference to the DHA administrator's statutory interpretation, as an initial matter because I conclude it is not the type of decision to which common law deference has been accorded, as I explained above, and also because, simply stated, the question to be answered is: What are the terms of the parties' contract? Neither the DHA hearing examiner nor the DHA administrator is more skilled than is a court in deciding this question. End-User Gas Ass'n, 218 Wis. 2d at 565.
C. Contract Interpretation
¶ 118. Racine H-D's Territory is described in a document separate from the Dealer Contract and the
¶ 119. The zip code description of Racine H-D's Territory is a writing contemporaneous to the two signed writings, the Dealer Contract and the Conditions of Sales and Service. However, the Conditions of Sales and Service has an integration clause
¶ 120. Here, the parties' rights and obligations under the Dealer Contract and the Conditions of Sales and Service, to which both parties agree they are bound, cannot be fully ascertained without reference to Racine H-D's Territory. For example, Racine H-D is granted the right to "purchase and resell at retail, primarily to persons residing or doing business in the Territory assigned."
¶ 121. In conclusion, even though I agree with the mandate of the majority opinion, because I disagree with its conclusion that common law standards of deference may be accorded to decisions of the DHA administrator when the administrator's decision has not been adopted by the line agency and that contract interpretation is central to the issue presented for review, I respectfully concur.
¶ 122. I am authorized to state that Justices JON E WILCOX and LOUIS B. BUTLER, JR. join this concurrence.
Wisconsin Stat. § 218.0116(8) provides in relevant part:
(a) A manufacturer or distributor may not modify a motor vehicle dealer agreement during the term of the agreement or upon its renewal if the modification substantially and adversely affects the motor vehicle dealer's rights, obligations, investment or return on investment without giving 60 days written notice of the proposed modification to the motor vehicle dealer unless the modification is required by law, court order or the licensor.
The DHA conducts hearings for the Department of Corrections, the Department of Health & Family Services, the Department of Workforce Development, the Department of Administration, the Department of Natural Resources, the Department of Justice, the Department of Transportation, the Department of Public Instruction, and the Department of
Even though the administrator may establish "pools of examiners responsible for certain subjects," Wis. Stat. § 227.43(lg), the record contains nothing in regard to the qualifications or experience of the hearing examiner who heard this case.
The decisions of the DOT involve regulation of outdoor advertising, regulation of junkyards, permits to construct entrances to state highways, placement of utility lines along highways, removal of highway signage, rescinding designations of marked highway routes within a municipality, certificates of approval to construct airports, regulations of structures that could affect airport operation, annual registration fees for aircraft, closing of highways for the safe transportation of hazardous materials, granting or suspending or revoking motor vehicle dealer or manufacturer or importer licenses, allegations of misuse of temporary operation permits and plates, the DOT acts or omissions under ch. 342, licenses for driver instructors and permits for oversized vehicles and loads.
The majority opinion relies in part on Town of Barton v. Div. of Hearings & Appeals, 2002 WI App 169, 256 Wis. 2d 628, 649 N.W.2d 293, for concluding that the legislature assigned the DHA the responsibility for enforcing Wis. Stat. § 218.0116(8). Majority op., ¶¶ 50-55. The author of this concurrence was also the author of Town of Barton; however, the question of whether common law deference should be accorded to the DHA was not presented to the court of appeals as it has been presented to the supreme court. Rather, the question in Town of Barton was whether Wis. Stat. § 86.16(1) applied to waste water pipelines
Wisconsin Stat. § 227.57(10) states in relevant part:
Upon such review due weight shall he accorded the experience, technical competence, and specialized knowledge of the agency involved, as well as discretionary authority conferred upon it.
I do not contrast or compare the common law doctrine of due weight deference with the phrase "due weight" in § 227.57(10) because that issue has not been briefed for the court.
When we apply great weight deference, we affirm an agency's interpretation of a statute even though we conclude that another interpretation is more reasonable. UFE, 201 Wis. 2d at 287.
See majority op., ¶ 23 n.21.
See Patience Drake Roggensack, Elected to Decide: Is the Decision-Avoidance Doctrine of Great Weight Deference Appropriate in this Court of Last Resort ?, 89 Marq. L. Rev. 541 (Spring 2006).
The Dealer Contract makes no attempt at integration.
Conditions of Sales and Service at 20.
Dealer Contract at 1.
Id. at 3.
Conditions of Sales and Service at 2.
Id.
Id. at 2-3.
Id. at 9.
Opinion of the Court
¶ 1. Racine Harley-Davidson, Inc. (Racine H-D) seeks review of a published decision of the court of appeals.
¶ 2. The court of appeals reversed an order of the circuit court for Racine County, Charles H. Constantine, Judge, and reinstated a ruling of the Department of Administration, Division of Hearings and Appeals, granting summary judgment to Harley-Davidson Motor Company (Harley-Davidson) against Racine H-D.
¶ 3. The court of appeals gave great weight deference to the decision of the Division of Hearings and Appeals that Harley-Davidson's assignment of territory to Racine H-D, namely a zip code list,
¶ 4. In contrast, the circuit court had overturned the decision of the Division of Hearings and Appeals. The circuit court concluded that Harley-Davidson's zip code assignment of territory to Racine H-D is part of the motor vehicle dealer agreement between the parties under Wis. Stat. § 218.0116(8) and that the cause
¶ 5. The issue presented here is the same as that presented to the Division of Hearings and Appeals, the circuit court and the court of appeals, namely whether Harley-Davidson's assignment of territory to Racine H-D (a zip code list) is part of their motor vehicle dealer agreement under Wis. Stat. § 218.0116(8). If the assignment is part of their motor vehicle dealer agreement, the cause should be remanded to the circuit court for remand to the Division to reinstate the amended complaint and to conduct further proceedings to determine whether Racine H-D should prevail on its claim under Wis. Stat. § 218.0116(8).
¶ 6. We conclude that read together, Wis. Stat. §218.0101(1) and (13); §218.0114(9) and (11); and § 218.0116(l)(r), (7), and (8); and the purpose of §§ 218.0101 to 218.0163, support the conclusion that a moré reasonable reading of the statutes than that of the Division of Hearings and Appeals is that a manufacturer's assignment of territory is an essential aspect of the franchise relationship and therefore part of the motor vehicle dealer agreement.
¶ 7. Accordingly we reverse the decision of the court of appeals and hold (1) that Harley-Davidson's assignment of territory (the zip code list) to Racine H-D is part of the motor vehicle dealer agreement between Harley-Davidson and Racine H-D under Wis. Stat. § 218.0116(8); and (2) that the cause should be remanded to the circuit court for remand to the Division of Hearings and Appeals to reinstate Racine H-D's complaint and to conduct further proceedings under Wis. Stat. § 218.0116(8) consistent with this opinion.
¶ 8. To determine whether the assignment of territory (the zip code list) is part of the motor vehicle dealer agreement under § 218.0116(8), we must first address the threshold issue of the proper level of deference to be given to the decision of the Division of Hearings and Appeals.
¶ 9. The court requested supplemental briefs from the parties on the level of deference to be accorded the decision of the Division of Hearings and Appeals, "considering Wis. Stat. §§ 227.43(l)(bg) and 227.46(3), and the following cases (and any other statute or case the parties consider applicable to the subject): State ex rel. Kaminski v. Schwarz, 2001 WI 94, ¶¶ 16, 21, 245 Wis. 2d 310, 630 N.W.2d 164; Buettner v. DHFS, 2003 WI App 90, ¶¶ 6-8, 264 Wis. 2d 700, 663 N.W.2d 282; Town of Barton v. Division of Hearings and Appeals, 2002 WI App 169, ¶ 10, 256 Wis. 2d 628, 649 N.W.2d 293; Artac v. DHFS, 2000 WI App 88, ¶ 13, ¶ 13 n.6,
¶ 10. The issue of deference to be accorded a decision involving the Division of Hearings and Appeals is also raised in Hilton v. DNR, 2006 WI 84,_Wis. 2d _, 717 N.W.2d 166, mandated this date.
¶ 11. Although statutory interpretation is ordinarily a question of law determined independently by a court, a court may accord an agency's interpretation of a statute great weight deference or due weight deference.
¶ 12. In an attempt to clarify prior statements of the standard of review for agency interpretation and application of statutes, the court set forth three levels of deference of agency interpretations of statutes in adjudicative matters in Jicha v. DILHR, 169 Wis. 2d 284, 290-91, 485 N.W.2d 256 (1992) and Sauk County v. WERC, 165 Wis. 2d 406, 413-14, 477 N.W.2d 267 (1991):
¶ 13. These levels of deference take into account the comparative institutional qualifications and capabilities of the court and the administrative agency.
¶ 14. By granting deference to agency interpretations, the court has not abdicated, and should not abdicate, its authority and responsibility to interpret statutes and decide questions of law. Some cases, how
¶ 15. Furthermore, giving deference to the agency interpretation does not mean that the court accepts the agency interpretation without a critical eye. The court itself must always interpret the statute to determine the reasonableness of the agency interpretation. Only reasonable agency interpretations are given any deference.
¶ 16. A reviewing court accords an agency's statutory interpretation great weight deference when each of
¶ 17. When a reviewing court applies great weight deference, it sustains an agency's reasonable statutory interpretation, even if the court concludes that another interpretation is equally reasonable, or even more reasonable, than that of the agency.
¶ 18. A reviewing court accords an agency's statutory interpretation due weight deference when the
¶ 19. A reviewing court accords an agency's statutory interpretation no deference when any of the following conditions is met: (1) the issue is one of first impression; (2) the agency has no experience or expertise in deciding the legal issue presented; or (3) the agency's position on the issue has been so inconsistent as to provide no real guidance.
¶ 20. Thus, due weight deference and no deference to an agency's interpretation of a statute are
¶ 21. In the present case two administrative entities implement the licensing system. The parties agree that although the Department of Transportation licenses both Harley-Davidson and Racine H-D under Wis. Stat. §§ 218.101 to 218.0163 and supervises both Harley-Davidson's and Racine H-D's licenses,
¶ 22. A dealer seeking to challenge a proposed modification of its motor vehicle dealer agreement under Wis. Stat. § 218.0116(8) must file a complaint with the Department of Transportation and the Division of Hearings and Appeals, and the Division must schedule a hearing and decide the matter.
¶ 24. Each party adversely affected by a proposed decision of a hearing examiner under Wis. Stat. § 227.43(l)(bg) may seek review by the administrator of the Division of Hearings and Appeals.
¶ 25. The decision of the Division of Hearings and Appeals in a dispute under § 218.0116(8) is final
¶ 26. In debating whether this court should give any deference to the statutory interpretation of the Division of Hearings and Appeals, the parties agree that the Division, including the hearing examiner in the present case, handles many Department of Transportation cases involving the motor vehicle statutes, but that neither the Division nor a hearing examiner has specifically addressed whether a manufacturer's modification of a dealer's territory is a modification of the parties' agreement under Wis. Stat. § 218.0116(8). Nor has the Division addressed the definitions of "agreement" and "franchise" under §§ 218.0101(1) and 218.0101(13). The parties disagree, however, about what deference, if any, is due to the Division's decision in the present case.
¶ 28. Racine H-D and amicus Wisconsin Automobile and Truck Dealers Association contend that this court should not accord any deference to the statutory interpretation of the Division and should interpret and apply the statute independently of the Division. They argue that the Division has never before addressed whether a manufacturer's modification of a dealer's territory is a modification of the parties' agreement under Wis. Stat. § 218.0116(8) and that accordingly the Division has no expertise or specialized knowledge in forming the interpretation.
¶ 29. In the instant case the final decision in the dispute is not that of the Department of Transportation but rather is that of the Department of Administration, Division of Hearings and Appeals.
¶ 30. The question presented in the present case is whether the statutory interpretation of an adminis
¶ 31. The concept of deference to statutory interpretations by agencies has been developed and applied in case law involving numerous administrative agencies, including agencies that perform purely adjudicative functions. Some agencies, like the Labor and Industry Review Commission (LIRC), to which deference has been accorded, have solely final adjudicative functions.
¶ 32. Because many of the cases according deference to statutory interpretations involved decisions of LIRC,
¶ 33. LIRC handles appeals addressing a variety of subject matters.
¶ 34. The three LIRC commissioners are appointed by the governor with the advice and consent of the Senate and they serve six-year terms.
¶ 35. Thus, both LIRC and the Division are adjudicative bodies charged only with resolving certain disputes. Neither entity makes rules, except regarding the procedure by which the adjudications proceed. Both address a wide variety of subject matters in handling appeals.
¶ 36. The Division of Hearings and Appeals is not the only adjudicative body that is attached to the Department of Administration. The Tax Appeals Commission is attached to the Department of Administration as well.
¶ 38. The court of appeals has had several opportunities to determine whether to apply levels of deference to statutory intérpretations rendered by the Division of Hearings and Appeals.
¶ 39. In Roehl Transport, Inc. v. Division of Hearings & Appeals, 213 Wis. 2d 452, 570 N.W.2d 864 (Ct. App. 1997), a trucking company challenged the imposition of a tax by the Department of Transportation based on a fuel taxation system under Wis. Stat. § 341.45(lg)(a), which the Department was charged
¶ 40. The Division's adjudicative responsibilities under Wis. Stat. § 341.45 are set forth in § 227.43(l)(br).
¶ 42. The court of appeals emphasized two elements in deciding whether to grant deference to the Division's decision in Roehl Transport: (1) Did the Division have experience, expertise, or expert knowledge? and (2) Did the legislature impose on the Division the duty to enforce or administer the statute?
¶ 43. The court of appeals held in Roehl Transport that the Division of Hearings and Appeals had not shown that it possessed any experience, expertise, or specialized knowledge in the area of fuel or excise taxation.
¶ 45. The principles of deference enunciated in Roehl Transport regarding decisions of the Division of Hearings and Appeals under Wis. Stat. § 227.43(l)(br) were applied and explained in Sea View Estates Beach Club, Inc. v. DNR, 223 Wis. 2d 138, 588 N.W.2d 667 (Ct. App. 1998), a case arising under § 227.43(l)(b).
¶ 46. In Sea View, a beach club had operated a 215-foot pier without a permit. Upon a complaint by Sea View's neighbor, the DNR conducted a site inspection and determined that a 190-foot pier would be more appropriate for the site and recommended granting a permit for a 190-foot pier. Sea View applied for this permit. Several neighbors objected to the permit and a contested hearing regarding the pier was held before the Division of Hearings and Appeals, as provided by Wis. Stat. § 227.43(l)(b). The hearing examiner concluded that a 110-foot pier would be more appropriate for the location.
¶ 47. In accordance with Wis. Admin. Code § NR 2.155(1),
¶ 48. On appeal, the court of appeals distinguished Sea View from Roehl Transport, reasoning that the Department of Natural Resources had adopted the decision of the Division of Hearings and Appeals. Accordingly, in Sea View the court of appeals reviewed the decision of the Division of Hearings and Appeals as a final decision of the Department of Natural Resources
¶ 51. The City of West Bend had requested permission from the Town of Barton to build a sanitary sewer interceptor through the Town. The Town denied the request, and the City appealed to the Division of Hearings and Appeals under Wis. Stat. § 86.16(5).
¶ 52. On appeal, the court of appeals concluded that due weight deference was appropriate to the decision of the Division of Hearings and Appeals permitting the City to install sewer equipment in the Town under
¶ 53. These court of appeals cases can be explained as follows: When the Division of Hearings and Appeals hears disputes under Wis. Stat. §§ 227.43(l)(b), (br), (bu), and (by), it appears to have jurisdiction concurrent with the Department of Natural Resources, the Department of Transportation, the Department of Health and Family Services, and the Department of Workforce Development, respectively. Furthermore, each department may by rule or in a particular case may by order direct that the hearing examiner's decision be the final decision of the agency
¶ 55. After reviewing Roehl Transport, Sea View, Town of Barton, and other cases such as those involving LIRC and the Tax Appeals Commission, we conclude that the legislature imposed the adjudicative responsibilities under Wis. Stat. § 218.0116(8)(a) on the Division of Hearings and Appeals and thus, for the purposes of adjudication, charged the Division with administration and enforcement of that statute. Therefore, our cases recognize that although statutory interpretation is ordinarily a question of law determined independently by a court, a court may accord deference to the Division's interpretation of § 218.0116(8)(a) under appropriate circumstances set forth in the case law.
¶ 56. Applying these cases, we conclude that in the present case the Division of Hearings and Appeals is not entitled to great weight deference because it has no
¶ 57. The other disputes before the Division of Hearings and Appeals relating to Wis. Stat. § 218.0116 addressed provisions of that section that impose licensing requirements on motor vehicle dealers and manufacturers or regulate the sale of motor vehicles. While the Division may have expertise regarding these issues, we conclude that interpretation of a motor vehicle dealer agreement under § 218.0116(8)(a) is a matter of first impression and that the Division lacks the requisite expertise and experience for its statutory interpretation to be accorded great weight deference.
¶ 58. Even if we were to grant due weight deference to the statutory interpretation of the Division of Hearings and Appeals of § 218.0116(8)(a) in the present case, we do not adopt the Division's statutory interpretation of § 218.0116(8)(a) because, as we explain below, another interpretation is more reasonable.
h-H f-H
¶ 59. The substantive dispute in the present case centers on what documents constitute the motor ve-
A
¶ 60. The following are the undisputed facts. The Division of Hearings and Appeals granted summary judgment to Harley- Davidson, concluding as a matter of law on the basis of undisputed facts that the zip code list assigning territory to Racine H-D was not part of the motor vehicle dealer agreement.
¶ 61. Harley-Davidson manufactures and sells motorcycles, parts, and accessories through a nationwide network of retail dealers. Harley-Davidson is licensed as a "manufacturer" under Wis. Stat. § 218.0101(2Q)(a) and Racine H-D is licensed as a "motor vehicle dealer" under Wis. Stat. § 218.0101(23). Racine H-D became a Harley-Davidson dealer in 1992 and entered into a series of contracts with Harley-Davidson, all granting Racine H-D a non-exclusive right to purchase and sell Harley-Davidson products at retail from an approved location in Racine.
¶ 62. When Racine H-D became a Harley-Davidson dealer in 1992, the parties signed a contract that granted Racine H-D the right to sell Harley-Davidson products in a "territory" defined as "Racine County in the State of Wisconsin." Racine County includes the zip code 53105, which encompasses the City of Burlington, an area of very high sales.
¶ 64. Before signing the 1994 contract, Racine H-D learned that Harley-Davidson intended to remove the Burlington zip code from Racine H-D's assigned territory and that the Burlington zip code would be reassigned to Uke's Harley-Davidson, a dealer located in Kenosha.
¶ 65. In response to Harley-Davidson's removal of the Burlington zip code, Racine H-D filed a complaint under Wis. Stat. § 218.0116(8) with the Division of Hearings and Appeals and the Department of Transportation, contesting the removal of the Burlington zip code. Racine H-D asserted that under the new method of assigning territory, which based assignment on a dealer's distance from the center of a zip code, Racine H-D was closer to Burlington than was Uke's Harley-Davidson.
¶ 66. Harley-Davidson then reevaluated its calculations and transferred the Burlington zip code back to Racine H-D. Racine H-D then withdrew its complaint and signed the 1994 dealer contract, dated May 25, 1994 and set to expire in 1998.
¶ 67. Racine H-D first received a list of zip codes to be included in its territory in 1994 in a meeting with its district manager. The list was on a sheet of paper, separate from any other documents.
¶ 69. The Dealer Contract mentions the assignment of territory in relevant parts as follows:
1. GRANT OF RIGHTS. Seller hereby grants to Dealer, and Dealer hereby accepts from Seller, the following rights:
A. To purchase and resell at retail, primarily to persons residing or doing business in the Territory assigned under this Contract the motorcycles, parts, accessories, clothing, and other items (collectively referred to in this Contract as the "Harley-Davidson Products") identified in the Products Addendum to the Harley-Davidson Motor Company Motorcycle Dealer Contract (referred to in this Contract as the "Products Addendum");
Each of the foregoing rights granted to Dealer shall be non-exclusive.
6. SPECIAL MARKET RIGHTS.... Dealer's special market rights only limit the location at which an additional Harley-Davidson motorcycle dealership may be established and are not in any way related to, and have no impact upon, Dealer's Territory, which remains*591 non-exclusive and subject to change by Harley-Davidson from time-to-time.
¶ 70. The document entitled "General Conditions of Sales and Service," expressly incorporated in the Dealer Contract,
Seller will assign Dealer a geographic area from time to time as Dealer's Territory, in which Dealer is responsible for effectively selling at retail, servicing and otherwise representing Harley-Davidson Products. It is understood and agreed that (a) Seller may modify, alter or adjust Dealer's Territory at any time, based on Seller's good faith business judgment; and (b) Dealer's Territory is non-exclusive. Without limitation, Dealer recognizes that Seller may change its Territory if the change results from the establishment of an additional Harley-Davidson dealership or the relocation of an existing dealership.
¶ 71. The General Conditions of Sales and Service document expressly provides that Racine H-D has
¶ 72. The parties agree that both the 1998 Dealer Contract and the General Conditions of Sales and Service are included in the agreement under Wis. Stat. § 218.0116(8)(a). Neither document spells out the territory assigned to Racine H-D, although both documents refer to Harley-Davidson assigning territory to Racine H-D. The dispute centers on whether other documents relating to the assignment of territory, in particular the zip code lists Harley-Davidson provided to Racine H-D, are part of the 1998 agreement.
¶ 73. As demonstrated by various documents and the parties' course of dealings, Racine H-D's territory continued to include the Burlington zip code from 1994 through 2001. For example, almost every year the parties sent direct mail promotional items to residents of Racine H-D's territory, which was described as including the Burlington zip code.
¶ 74. The dispute between the parties arose when Harley-Davidson decided in 2001 to remove the Burlington zip code from Racine H-D's assigned territory. In 2001, Harley-Davidson informed Racine H-D that the
¶ 75. In 2002, in response to the reassignment of the Burlington zip code, Racine H-D filed a complaint with the Division of Hearings and Appeals and the Department of Transportation.
¶ 76. The decision of the hearing examiner was for the most part approved by the administrator of the Division of Hearings and Appeals. The final ruling stated that "[t]he assignment of a territory by Harley-
¶ 77. On review the circuit court concluded that the zip codes list provided to Racine H-D in 1994 was part of the motor vehicle dealer agreement because the motor vehicle dealer agreement "only makes sense if there is reference" to the zip code list. The court of appeals reversed the order of the circuit court. The court of appeals applied great weight deference to the decision of the Division of Hearings and Appeals, concluding that the legislature had charged the Division with administration of § 218.0116(8) and that the Division had substantial experience interpreting the motor vehicle code.
B
¶ 78. We turn now to the question whether the assignment of territory is part of a motor vehicle agreement under Wis. Stat. § 218.0116(8). We conclude that a manufacturer's assignment of territory is an essential aspect of the franchise relationship and therefore part of a motor vehicle dealer agreement under § 218.0116(8).
¶ 79. We begin our analysis of the meaning of "motor vehicle dealer agreement" as used in § 218.0116(8) by examining §§ 218.0101(1) and (13), which define the words "agreement" and "franchise" respectively for the purposes of §§ 218.0101 to 218.0163 governing motor vehicle dealers.
¶ 80. Wisconsin Stat. § 218.0101(1) defines "agreement" to mean "a contract that describes the franchise relationship between manufacturers, distributors, importers and dealers." The statute does not define "agreement" as a written instrument and does not require that all terms of the agreement be included in a single instrument designated as the agreement and executed by both parties.
¶ 81. Section 218.0101(13) defines "franchise" to mean "the right to buy, sell, distribute or service a line make of motor vehicles that is granted to a motor vehicle dealer or distributor by a manufacturer, importer or distributor." Nothing in Wis. Stat. §§ 218.0101 to 218.0163 further defines the words "agreement,"
¶ 82. Several other provisions in Wis. Stat. §§ 218.0101 to 218.0163 demonstrate that the assignment of territory is an essential aspect of the franchise relationship and therefore part of the motor vehicle dealer agreement.
¶ 83. The first sentence of Wis. Stat. § 218.0114(11) provides that "[a] manufacturer . . . shall designate in writing the area of sales responsibility assigned to a motor vehicle dealer." Thus a manufacturer's written assignment of territory is a statutory condition for licensing.
¶ 84. While this language does not explicitly require that the written territory assignment be part of the motor vehicle dealer agreement, the implication is that the assignment of territory is an essential aspect of
¶ 85. The second sentence of Wis. Stat. § 218.0114(11) prohibits a manufacturer from modifying the area of sales responsibility to avoid the requirements of § 218.0116(7), which governs a manufacturer who seeks to enter into a franchise agreement establishing or relocating a motor vehicle dealership. If a manufacturer seeks to establish or relocate a dealership, an existing dealer franchise may file a protest with the Department of Transportation and the Division of Hearings and Appeals. Thus territory plays a role when a manufacturer proposes establishing another dealership within the "relevant market area" of an existing dealership. The implication in § 218.0116(7) and (11) is that the manufacturer's assignment of territory is an essential aspect of the franchise relationship and therefore part of the motor vehicle dealer agreement.
¶ 86. Section 218.0116(l)(r) (part of Wis. Stat. § 218.0116(1) governing the denial, suspension or revocation of licenses) provides that a manufacturer's license may be denied, suspended, or revoked if, among other matters, the manufacturer "fails to designate in writing the area of sales responsibility assigned to a motor vehicle dealer." Although subsection (l)(r) does not explicitly require that the assignment of territory be part of the motor vehicle agreement, it reaffirms the notion that the assignment of territory is an essential aspect of the franchise relationship and therefore part of the motor vehicle dealer agreement between the parties.
¶ 87. Another significant provision for our purposes is Wis. Stat. § 218.0114(9)(a)l. prohibiting and rendering void any provisions in an agreement that "waive a remedy or defense available to ... a dealer or
¶ 88. Unless an assignment of territory is treated as part of the motor vehicle dealer agreement, Wis. Stat. § 218.0116(8) will not provide an effective administrative remedy to motor vehicle dealers for a manufacturer's modification of territory. This result seems contrary to the purposes of Wis. Stat. §§ 218.0114(9)(a)l. and 218.0116(8).
¶ 89. Thus Wis. Stat. § 218.0101(1) and (13); § 218.0114(9) and (11); and § 218.0116(l)(r), (7), and (8) support the view that an assignment of territory is an essential aspect of the franchise relationship and therefore part of a motor vehicle dealer agreement. Failing to include an assignment of territory as a part of the motor vehicle dealer agreement not only would make it difficult to "effectively work under the terms of the contract[,]" as the circuit court stated, but also would permit manufacturers and dealers to circumvent by contract essential and non-waivable provisions of §§ 218.0101 to 218.0163.
¶ 90. The Division of Hearings and Appeals concluded that the assignment of territory is an important component of the franchise relationship between a manufacturer and dealer but that "the precise description of the assigned territory is not essential to the relationship." It concluded that the express language in
¶ 91. The reasoning of the Division of Hearings and Appeals is not persuasive and gives no consideration to Wis. Stat. § 218.0114(9)(a)l. prohibiting and rendering void any provisions in an agreement that "waive a remedy or defense available to ... a dealer or other provision protecting the interests of... a dealer under ss. 218.0101 to 218.0163." The Division's interpretation of § 218.0116(8) is not the more reasonable interpretation because it allows a manufacturer to circumvent the protections afforded a dealer under Wis. Stat. § 218.0116(8) by allowing the manufacturer to place the assignment of territory in a document separate from other documents.
¶ 92. Furthermore, the statutory interpretation of the Division of Hearings and Appeals fails to serve the remedial purpose underlying the statute. The dealership law is designed to protect motor vehicle dealers from unfair treatment by manufacturers who are in a stronger bargaining position than dealers and to give dealers remedies against the manufacturer. In Forest Home Dodge, Inc. v. Karns, 29 Wis. 2d 78, 138 N.W. 2d 214 (1965), we explained that the legislature recognized this disparity of bargaining positions in adopting the motor vehicle dealership law:
Implicit in this law is the recognition of the gross disparity of bargaining power between the manufacturer of automobiles and the local retailer. It was enacted in recognition of the long history of the abuse of dealers by manufacturers.... The purpose of the law*600 is to furnish the dealer with some protection against unfair treatment by the manufacturer.81
¶ 93. The court has often stated that remedial legislation should be broadly construed to effectuate its purpose.
¶ 94. We conclude that read together, Wis. Stat. §218.0101(1) and (13); §218.0114(9) and (11); and § 218.0116(l)(r), (7), and (8); and the purpose of §§ 218.0101 to 218.0163, support the conclusion that a more reasonable interpretation of the statutes than
¶ 95. Applying our interpretation of the statutes to the present case, we agree with the circuit court that the zip code list is part of the motor vehicle dealer agreement under Wis. Stat. § 218.0116(8) between the parties. The circuit court astutely observed: "It is disingenuous to argue the [zip code] list is not part of the dealership agreement.... Neither [Racine H-D nor Harley-Davidson] can effectively work under the terms of the contract without reference to the territorial restrictions as set forth in the list."
¶ 96. Accordingly, we reverse the decision of the court of appeals and hold (1) that Harley-Davidson's assignment of territory to Racine H-D was part of the motor vehicle dealer agreement between Harley-Davidson and Racine H-D under Wis. Stat. § 218.0116(8); and (2) that the cause should be remanded to the circuit court for remand to the Division of Hearings and Appeals to reinstate Racine H-D's complaint and to conduct further proceedings under Wis. Stat. § 218.0116(8) consistent with this opinion.
¶ 97. By the Court. — The decision of the court of appeals is reversed and the cause is remanded to the circuit court for remand to the Division of Hearings and Appeals.
Racine Harley-Davidson v. Div. of Hearings & Appeals, 2005 WI App 6, 278 Wis. 2d 508, 692 N.W.2d 670.
Assignment of territory is sometimes also referred to as "area of sales responsibility" or "primary market area."
All references to the Wisconsin Statutes are to the 2003-04 version unless otherwise indicated.
When this court reviews a decision of an administrative agency, it ordinarily reviews the agency decision, not the decision of the court of appeals or the circuit court. West Bend Co. v. LIRC, 149 Wis. 2d 110, 117, 438 N.W.2d 823 (1989).
The meaning of the word "agency" in ch. 227, and whether "agency” includes the Division of Hearings and Appeals for purposes of service, is discussed in All Star Rent a Car, Inc. v. DOT, 2006 WI 85, 292 Wis. 2d 615, 716 N.W.2d 506. The definition of "agency" in ch. 227 is not relevant in the instant case because Wis. Stat. § 218.0116(9) provides that any person aggrieved by a decision of the Division may have review of the decision as provided in ch. 227. Section 227.52 provides for judicial review of any "administrative decision" without linking that decision to an agency. See also Wis. Stat. § 227.46(2m) (providing for judicial review of Division decisions made under Wis. Stat. § 227.43(l)(bg)).
Keup v. DHFS, 2004 WI 16, ¶ 12, 269 Wis. 2d 59, 675 N.W.2d 755 ("This issue involves statutory interpretation, which is a question of law that this court reviews de novo. Thus, we are not bound by an administrative agency's determination. Nevertheless, we have generally used one of three standards of review, with varying degrees of deference, to review an agency's conclusions of law or statutory interpretation." (citations omitted)); Brown v. LIRC, 2003 WI 142, ¶¶ 11-13, 267 Wis. 2d 31, 671 N.W.2d 279 ("The interpretation of a statute presents a question of law. The application of a statutory standard to a fact situation is ordinarily a question of law for the courts. ... Nevertheless, labeling an issue as a question of law does not mean that a court may disregard an agency's determination. . .. The appropriate level of scrutiny a court should use in reviewing an agency's decision on questions of law depends on the comparative institutional capabilities and qualifications of the court and the agency to make a legal determination on a particular issue"); Dodgeland Educ. Ass'n v. WERC, 2002 WI 22, ¶ 22, 250 Wis. 2d 357, 639 N.W.2d 733 ("Whether WERC properly interpreted Wis. Stat. § 111.70 is a question of law and we are not bound by WERC's interpretation. In certain circum
See Salvatore Massa, The Standards of Review for Agency Interpretations of Statutes in Wisconsin, 83 Marq. L. Rev. 597 (2000); Patrick M. Zabrowski, Comment, The Standard of Review of Administrative Rules in Wisconsin, 1982 Wis. L. Rev. 691, (1982); Paul B. Hewitt, Comment, The Scope of Judicial Review of Administrative Agency Decisions in Wisconsin, 1973 Wis. L. Rev. 554 (1973).
At the federal level too, "one of the most persistently intriguing puzzles has been to define the appropriate judicial and administrative roles in the interpretation of regulatory statutes. ... To determine 'what the law is' in the context of an actual controversy that turns on a question of statutory meaning is the quintessential judicial function. At the same time, however, such questions are so bound up with successful administration of the regulatory scheme that it may seem only sensible to give principle interpretive responsibility to the 'expert' agency that lives with the statute constantly." Cynthia R. Farina, Statutory Interpretation and the Balance of Power in the Administrative State, 89 Colum. L. Rev. 452, 452-53 (1989).
For discussions of the deference given to federal agency interpretation of statutes, see United States v. Mead Corp., 533 U.S. 218 (2001); Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984); 6 Jacob A. Stein et al., Administrative Law § 51.01 (Rel. 75-8/02 Pub. 301).
For prior case law explaining the standard of review of an agency interpretation and application of a statute, including a comparison of the court's "analytical" approach to agency deference and "practical" or "policy" approach, see, e.g., DOR v. Exxon Corp., 90 Wis. 2d 700, 712-14, 281 N.W.2d 94 (1979); DOR v. Milwaukee Ref. Corp., 80 Wis. 2d 44, 48, 257 N.W.2d 855 (1977); Pabst v. Dep't of Taxation, 19 Wis. 2d 313, 322-23, 120 N.W.2d 77 (1963).
Brown v. LIRC, 2003 WT 142, ¶ 13, 267 Wis. 2d 31, 671 N.W.2d 279 (citing State ex rel. Parker v. Sullivan, 184 Wis. 2d 668, 699, 517 N.W.2d 449 (1994)).
See, e.g., Pinczkowski v. Milwaukee County, 2005 WI 161, ¶¶ 62-65, 286 Wis. 2d 339, 706 N.W.2d 642 (discussing levels of deference, but not stating the court's ultimate authority to decide questions of law); Clean Wisconsin, Inc. v. Pub. Serv. Comm'n, 2005 WI 93, ¶¶ 37-43, 282 Wis. 2d 250, 700 N.W.2d 768 (same); Crystal Lake Cheese Factory v. LIRC, 2003 WI 106, ¶¶ 23-25, 28-30, 264 Wis. 2d 200, 664 N.W.2d 651 (same); Kitten v. DWD, 2002 WI 54, ¶¶ 26-29, 252 Wis. 2d 561, 644 N.W.2d 649 (same).
UFE Inc. v. LIRC, 201 Wis. 2d 274, 284, 548 N.W.2d 57 (1996) (citing Harnischfeger Corp. v. LIRC, 196 Wis. 2d 650, 660, 539 N.W.2d 98 (1995)).
UFE Inc., 201 Wis. 2d at 287.
"[Wjhen the expertise of the ... agency is significant to the value judgment (to the determination of a legal question)," if the agency's decision is reasonable it will be accepted by courts "irrespective of whether there may have been some other reasonable interpretation or application [of the statute]." Nottelson v. DIHLR, 94 Wis. 2d 106, 117 & n.10, 287 N.W.2d 763 (1980).
Brown, 267 Wis. 2d 31, ¶ 19 (citing Harnischfeger Corp. v. LIRC, 196 Wis. 2d 650, 662, 539 N.W.2d 98 (1995); Barron Elec. Co-op. v. Pub. Serv. Comm'n, 212 Wis. 2d 752, 766, 569 N.W.2d 726 (Ct. App. 1997)).
UFE Inc., 201 Wis. 2d at 286.
Id at 285.
Harnischfeger Corp., 196 Wis. 2d at 660 n.4 (citing Village of Whitefish Bay v. Employment Relations Bd., 34 Wis. 2d 432, 445, 149 N.W.2d 662 (1967)).
UFE Inc., 201 Wis. 2d at 287 n.3.
Wis. Stat. § 218.0111.
Wisconsin Stat. § 218.0116(8)(a) provides in relevant part:
*567 [T]he motor vehicle dealer may file with the department of transportation and the division of hearings and appeals and serve upon the respondent a complaint for a determination of whether there is good cause for permitting the proposed modification. The division of hearings and appeals shall promptly schedule a hearing and decide the matter.
Wisconsin Stat. § 227.43(l)(bg) also grants the Division jurisdiction to appoint a hearing examiner to hear and preside over hearings:
(1) The administrator of the division of hearings and appeals in the department of administration shall:
(bg) Assign a hearing examiner to preside over any hearing or review under ss. ... 86.16(5) ... 218.0116 . .. (8)(a)....
See also Wis. Stat. § 218.0116(8)(a).
The statutes refer to a "hearing examiner." The Division refers to the hearing examiner as an "administrative law judge."
Wisconsin Stat. § 227.43(lg) states:
The administrator of the division of hearings and appeals shall establish a system for assigning hearing examiners to preside over any hearing under this section. The system shall ensure, to the extent practicable, that hearing examiners are assigned to differ*568 ent subjects on a rotating basis. The system may include the establishment of pools of examiners responsible for certain subjects.
Wis. Stat. § 227.46(2m).
Id.
Wisconsin Stat. § 218.0116(8)(c) provides:
The decision of the division of hearings and appeals shall be in writing and shall contain findings of fact and a determination of whether there is good cause for permitting the proposed modification. The division of hearings and appeals shall deliver copies of the decision to the parties personally or by registered mail. The decision is final upon its delivery or mailing and no reconsideration or rehearing by the division of hearings and appeals is permitted.
Wisconsin Stat. § 227.46(2m) provides, in relevant part:
In any hearing or review assigned to a hearing examiner under s. 227.43 (l)(bg) [whichincludesahearingunders.218.0116(8)(a)] ... [t]he decision of the administrator of the division of hearings and appeals ds a final decision of the agency subject to judicial review under s. 227.52.
Wisconsin Stat. § 227.46(3) states, in relevant part:
With respect to contested cases except a hearing or review assigned to a hearing examiner under s. 227.43(l)(bg) [which includes a hearing under § 218.0116(8)(a)], an agency may by rule or in a particular case may by order:
(a) Direct that the hearing examiner's decision be the final decision of the agency....
Thus, because the Division of Hearings and Appeals assigns the hearing examiner for § 218.0116(8) cases under § 227.043(l)(bg), the Department of Transportation is not permitted to adopt the decision of the Division.
Wisconsin Stat. § 218.0116(9) states:
Any person in interest aggrieved by a decision of the division of hearings and appeals or an order of the division of banking may have a review of the decision as provided in ch. 227.
Wis. Stat. § 227.46(2m).
See Wis. Stat. § 218.0116(8)(c).
The court has reviewed and accorded deference to the statutory interpretation of the adjudicative agency without deference to the other agency. See, e.g., DILHR v. LIRC, 161 Wis. 2d 231, 241-45, 467 N.W.2d 545 (1991) (court accords deference to LIRC's statutory interpretation, not DILHR's, even though DILHR is primary agency administering unemployment compensation law; court unpersuaded by DILHR's argument to the contrary);Dep't of Transp. v. Comm'r of Transp., 159 Wis. 2d 271, 463 N.W.2d 870 (Ct. App. 1990) (court reviews decision of Commissioner of Transportation, the adjudicative predecessor to the Division of Hearings and Appeals for Department of Transportation cases (with adjudicative authority to grant or deny an application for a motor vehicle dealer's license), according no deference to the Department of Transportation, the agency charged with other duties under the motor vehicle dealer code; Wis. Stat. § 218.01(3)(b) (1989-90)).
See, e.g., UFE, Inc., 201 Wis. 2d at 281-88; Harnischfeger Corp., 196 Wis. 2d at 659-63; Lisney v. LIRC, 171 Wis. 2d 499, 505-07, 493 N.W.2d 499 (1992); DILHR v. LIRC, 161 Wis. 2d 231, 241-47,467 N.W.2d 545 (1991) (deference was due to LIRC, not DILHR, reasoning that the legislature intended LIRC to have final review authority over disputed DILHR decisions; Wis. Stat. §§ 108.09(6)-(7), 108.10(3) (1989-90)).
See, e.g., Clean Wisconsin, Inc. v. Pub. Serv. Comm'n, 2005 WI 93, ¶¶ 35-44, 282 Wis. 2d 250, 700 N.W.2d 768 (Wis. Stat. § 196.02 (2001-02)); West Bend Educ. Ass'n v. WERC, 121 Wis. 2d 1, 12-14, 357 N.W.2d 534 (1984) (Wis. Stat. § 111.70(4) (1979-80)).
See, e.g., Brown, 267 Wis. 2d 31, ¶ 17 (great weight deference); UFE, Inc., 201 Wis. 2d at 286-87 (due weight deference); Harnischfeger Corp., 196 Wis. 2d at 660 (great weight deference); Lisney, 171 Wis. 2d at 522 (no deference because statutory language abides only one reasonable interpretation); DILHR v. LIRC, 161 Wis. 2d 231, 241-47, 467 N.W.2d 545 (1991) (LIRC, not DILHR, is the appropriate body to which deference is accorded).
Wis. Stat. § 15.225(1).
Wis. Stat. § 15.103(1).
Wisconsin Stat. § 103.04(2) provides:
(2) Notwithstanding s. 227.11, the commission [LIRC] may not promulgate rules except that it may promulgate its rules of procedure.
(Wisconsin Stat. § 227.11 provides for the general rule-making authority of administrative agencies.)
Under Wis. Stat. § 227.43(l)(d), "The administrator of the division of hearings and appeals in the department of administration shall... (d) Promulgate rules relating to the exercise of the administrator's and the division's powers and duties under this section."
Wisconsin Stat. § 15.03, applying to the Division of Hearings and Appeals and LIRC, provides in relevant part:
Any division, office, commission, council or board attached under this section to a department or independent agency or a specified division thereof shall be a distinct unit of that department, independent agency or specified division. Any division, office, commission, council or board so attached shall exercise its powers, duties and functions prescribed by law, including rule making, licensing and regulation, and operational planning within the area of program responsibility of the division, office, commission, council or board, independently of the head of the department or independent agency, but budgeting, program coordination and related management functions shall be performed under the direction and supervision of the head of the department or independent agency....
The subjects include unemployment insurance, worker's compensation, equal rights, and employer tax status.
Statistics available at LIRC website, http://www.dwd. state.wi.us/lirc/lrc_05st.htm/ (last visited June 27, 2006).
LIRC decided 2,845 unemployment insurance cases, 455 worker's compensation cases, 144 equal rights cases, and 29 employer tax status cases.
The subjects include medical assistance, food stamps, nursing home and medical facility licensing, crime victim compensation, special education cases, and parole and probation review. Hearing information available at Division of Hearings and Appeals website, http://dha.state.wi.us/home/ (last visited June 27, 2006). A complete list of the agencies for which the Division conducts hearings, and the subject matters those hearings cover, is available on the Division website.
Statistics available in portable document format at the website of the Wisconsin State Legislature, http://www.legis. state.wi.us/lab/reports/00-7full.pdf (last visited June 27, 2006).
Wis. Stat. §§ 15.01(2), 16.06(1) W. The LIRC chairperson is elected by the commissioners from among their own members for two-year terms. Wis. Stat. § 15.06(2)(a).
Wis. Stat. § 15.103.
Wis. Stat. § 15.05(l)(a).
Wis. Stat. § 15.103(1).
There are, of course, differences between LIRC and the Division. For example, the hearing examiners who conduct the initial hearings reviewed on appeal by LIRC are not employed by LIRC; they are employed by the Department of Workforce Development. The hearing examiners in Division of Hearings and Appeals cases, on the other hand, are employees of the Division.
Wis. Stat. § 15.105(1) ("There is created a tax appeals commission which is attached to the department of administration under s. 15.03."); see also 2001-2003 Biennial Report of the Wisconsin Tax Appeals Commission, at 1, available at http://www.doa.state.wi.us/docs_view2.asp7dockN1680 (last visited June 27, 2006) ("The Tax Appeals Commission is an independent state agency. Its organization, powers, duties, and functions are governed by Chapter 73 of the Wisconsin Statutes. Pursuant to Wis. Stat. § 15.03, budgeting, program coordination, and related management functions are performed by the Commission, under the general direction and supervision of the Secretary of the Department of Administration.").
Wis. Stat. § 73.01.
See 2001-2003 Biennial Report of the Wisconsin Tax Appeals Commission, at 1, available at http://www.doa.state. wi.us/docs_view2.asp?docid=1680 (last visited June 27, 2006), for a list of the types of tax appeals handled by the Tax Appeals Commission.
Wis. Stat. § 73.03.
See, e.g., Lincoln Savings Bank, S.A. v. DOR, 215 Wis. 2d 430, 443, 573 N.W.2d 522 (1998) (citing UFE, Inc., 201 Wis. 2d at 282 n.2, granting no deference to interpretation and application of statute by Tax Appeals Commission when interpreta
Roehl Transport, Inc. v. Div. of Hearings & Appeals, 213 Wis. 2d 452, 460, 465-66, 570 N.W.2d 864 (Ct. App. 1997).
Wisconsin Stat. § 227.43 states, in relevant parts:
(1) The administrator of the division of hearings and appeals in the department of administration shall:
(br) Assign a hearing examiner to preside over any hearing of a contested case which is required to he conducted by the department of transportation and which is not conducted by the secretary of transportation.
Roehl Transport, 213 Wis. 2d at 460.
Id. at 461 (emphasis added). A review of the Division of Hearings and Appeals website indicates that Roehl Transport was the first case the Division ever heard regarding Wis. Stat. §341.45. See Decisions Issued by DHAfor Dep't of Transportation, available at http://dha.state.wi.us (last visited June 27, 2006).
In Commissioner of Insurance v. Fiber Recovery, Inc., 2004 WI App 183, ¶ 15,276 Wis. 2d 495, 687 N.W.2d 755, the court of appeals, following Roehl Transport, concluded that the court "may give deference to an agency decision on a question of law where the agency has expertise" but that the Division of Hearings and Appeals lacked expertise regarding ch. 605 and the construction of insurance contracts. The Division appar
(lm) Upon the request of an agency that is not prohibited from contracting with a 3rd party for contested case hearing services, the administrator of the division of hearings and appeals in the department of administration may contract with the agency to provide the contested case hearing services and may assign a hearing examiner to preside over any hearing performed under such a contract.
The court of appeals thus distinguished the Division of Hearings and Appeals from the Tax Appeals Commission, explaining that the Division is not "an independent agency— such as the Tax Appeals Commission — created for the express purpose of reviewing decisions of a line agency."
Wisconsin Stat. § 227.43 states in relevant parts:
(1) The administrator of the division of hearings and appeals in the department of administration shall:
(b) Assign a hearing examiner to preside over any hearing of a contested case which is required to he conducted by the department of natural resources and which is not conducted by the secretary of natural resources.
Wisconsin Admin. Code § NR 2.155(1) (Sept., 2002) provides in relevant part:
Unless the department petitions for judicial review as provided in s. 227.46(8), Stats., the decision [of the Division of Hearings and Appeals hearing officer] shall be the final decision of the department, but may be reviewed in the manner described in s. NR 2.20.
Wisconsin Admin Code § NR 2.20 (Aug., 1997) provides:
(1) FILING. Any party to a contested case who is adversely affected by a final decision rendered after a contested case hearing on the matter may, within 20 days after issuance of the decision, file a written petition for review by the secretary or the secretary's designee. The petition shall specify in detail the grounds for the review, the relief which petitioner seeks and citation to supporting authorities which petitioner believes aids petitioner's case. The secretary may not delegate the review to anyone who has had prior involvement in either the hearing or decision-making process.
*581 (2) SERVICE. The petition for review under this section shall be served on the secretary as provided for in s. NR 2.03. Copies of the petition for review shall be served by regular mail upon the administrative law judge and upon all parties to the action.
(3) DECISION. Within 14 days of the receipt of the petition, the secretary shall decide whether or not to grant the requested review. If the secretary decides to grant the review, the secretary may order the filing of briefs, presentation of oral argument, or a rehearing of all or part of the evidence presented at the original public hearing, or any combination thereof.
(4) APPEAL. A petition for review pursuant to this section is not a prerequisite for appeal or review under ss. 227.52 to 227.53, Stats.
(5) SUSPENSION OF DECISIONS. The filing of a petition for review under this section does not suspend or delay the effective date of a decision, and the decision shall take effect on the date of the decision unless another date is set by the department or the administrative law judge, and shall continue in effect unless provisions of the decision are specifically suspended or delayed by the secretary in writing. Petition for suspension of the effective date of a decision shall be clearly specified in the petition for review under this section.
(6) EFFECT ON JUDICIAL REVIEW An action pending under this section does not in any manner affect or extend the time limits for filing actions in circuit court for review under ss. 227.52 and 227.53, Stats.
See Sea View Estates Beach Club, Inc. v. DNR, 223 Wis. 2d 138, 144-45, 588 N.W.2d 667 (Ct. App. 1998).
Wisconsin Stat. § 227.46(3) states:
With respect to contested cases except a hearing or review assigned to a hearing examiner under s. 227.43(l)(bg), an agency may by rule or in a particular case may by order:
(a) Direct that the hearing examiner's decision be the final decision of the agency;
*582 (b) Except as provided in sub. (2) or (4), direct that the record be certified to it without an intervening proposed decision; or
(c) Direct that the procedure in sub. (2) be followed, except that in a class 1 proceeding both written and oral argument may be limited.
Sea View, 223 Wis. 2d at 144-46.
Sea View Estates Beach Club, Inc. v. DNR, 223 Wis. 2d 138, 149, 588 N.W.2d 667 (Ct. App. 1998).
Similarly, in Borsellino v. DNR, 2000 WI App 27, ¶¶ 5-6, 232 Wis. 2d 430, 606 N.W.2d 255, the court of appeals reviewed a Division of Hearings and Appeals decision regarding pier size*583 that was adopted by the Department of Natural Resources under Wis. Admin. Code § NR 2.155(1). Relying on Sea View, the court of appeals reviewed the decision as the final decision of the Department of Natural Resources and gave the decision great weight deference.
In Artac v. DHFS, 2000 WI App 88, 234 Wis. 2d 480, 610 N.W.2d 115 (a case arising under Wis. Stat. § 227.43(l)(bu), which is parallel to Wis. Stat. § 227.43(l)(b) and (br)), the court of appeals, citing Roehl Transport and Sea View, gave no deference to a decision of the Division of Hearings and Appeals denying a medical assistance application. The court of appeals pointed out that, unlike the Department of Natural Resources in Sea View, the Department of Health and Family Services had not adopted the decision of the Division. Thus the court of appeals granted the Division's decision no deference. The court of appeals commented that " [I]t appears unusual to grant different levels of deference to what are effectively all [Division] decisions based on whether a particular agency has a rule by which it automatically adopts those decisions. However under Roehl and Sea View, it appears that we are bound to do so." 234 Wis. 2d 480, ¶ 13 n.6.
The court of appeals followed Artac in Buettner v. DHFS, 2003 WI App 90, 264 Wis. 2d 700, 663 N.W.2d 282. In Buettner, the Department of Health and Family Services terminated Buettner's medical assistance benefits. Buettner appealed to the Division of Hearings and Appeals, which, after a hearing, affirmed. As in Artac, the Division's authority to hear Buettner's challenge came from Wis. Stat. § 227.43(l)(bu). The circuit court granted summary judgment for the Department. On appeal, the court of appeals determined that the Division of Hearings and Appeals decision had not been adopted by DHFS,
Town of Barton addressed Wis. Stat. §86.16(5), which is included in the list of statutes covered by Wis. Stat. § 227.43(l)(bg). See supra note 21.
Wisconsin Stat. § 86.16(5) states:
Any person, firm or corporation whose written application for permission to construct such lines within the limits of a highway has been refused, or has been on file with the department or local authority for 20 days and no action has been taken thereon, may file with the department or local authority a notice of appeal to the division of hearings and appeals. The department or local authority shall thereupon return all of the papers and action of the department or local authority to the division of hearings and appeals, and the division of hearings and appeals shall hear and try and determine the appeal on 10 days' notice to the department or local authority, and the applicant. The order entered by the division of hearings and appeals shall be final.
See also Wis. Stat. § 227.43(l)(bg).
Town of Barton v. Div. of Hearings & Appeals, 2002 WI App 169, ¶¶ 10, 15, 256 Wis. 2d 628, 649 N.W.2d 293.
Id., ¶ 10.
The briefs in Town of Barton made no reference to Roehl Transport or Sea View.
Wis. Stat. § 227.46(3)(a).
Wis. Stat. §§ 227.43(l)(bg), 227.46(2m), (3). See also Wis. Stat. § 218.0116(8)(c), (9).
Wisconsin Stat. § 227.46(2m) permits the Department of Transportation to seek judicial review of a Division decision made under § 227.43(l)(bg).
See Decisions Issued by DHA for Dept. of Transportation, available at http://dha.state.wi.us (last visited June 27, 2005).
See UFE Inc., 201 Wis. 2d at 284 (citing Harnischfeger Corp., 196 Wis. 2d at 660).
Regarding the General Conditions of Sales and Service, the Dealer Contract provides:
2. General Conditions. The Harley-Davidson Motor Company General Conditions of Sales and Service (January 1999) (referred to in this Contract as the "General Conditions"), a copy of which has been provided to Dealer and has been read and agreed to by Seller and Dealer, and such General Conditions and any duly executed and delivered supplement or amendment thereto are hereby expressly made a part of this Contract and incorporated herein. Unless the context otherwise requires, any term defined in any part of this Contract shall have the same meaning in all parts of this Contract. (Emphasis added.)
See Wis. Stat. § 218.0116(8)(a):
A manufacturer or distributor may not modify a motor vehicle dealer agreement during the term of the agreement or upon its renewal if the modification substantially and adversely affects the motor vehicle dealer's rights, obligations, investment or return on investment without giving 60 days written notice of the proposed modification to the motor vehicle dealer unless the modification is required by law, court order or the licensor. Within the 60-day notice period the motor vehicle dealer may file with the department of transportation and the division of hearings and appeals and serve upon the respondent a complaint for a determination of whether there is good cause for permitting the proposed modification. The division of hearings and appeals shall promptly schedule a hearing and decide the matter. Multiple complaints pertaining to the same proposed modification shall be consolidated for hearing. The proposed modification may not take effect pending the determination of the matter.
Racine Harley-Davidson, 278 Wis. 2d 508, ¶¶ 22, 24.
Id., ¶¶ 26-30.
The original definition of "agreement" adopted in 1961 is substantially the same as the present definition. The original definition stated, " 'Agreement' means contract or franchise or any other terminology used to describe the contractual relationship between manufacturers, distributors, importers and dealers." Wis. Stat. § 218.01(l)(u) (1961).
A worksheet for a draft of the 1961 session law, ch. 560, Laws of 1961, states that" '[algreement
The legislative history of the definition of "agreement" adopted in 1993 demonstrates no intent to change the substance of the prior definition.
Forest Home Dodge, Inc. v. Karns, 29 Wis. 2d 78, 85, 138 N.W 2d 214 (1965); see also Kuhl Motor Co. v. Ford Motor Co., 270 Wis. 488, 494, 71 N.W.2d 420 (1955) ("[T]he legislature recognized the inequality in bargaining power between an automobile dealer and an economically powerful manufacturer such as the defendant and that it desired to furnish him some protection by deterring unfair cancellation.").
See, e.g., Garcia v. Mazda Motors of America, Inc., 2004 WI 93, ¶ 8,273 Wis. 2d 612, 682 N.W.2d 365 ("[W]e will liberally construe remedial statutes to suppress the mischief and advance the remedy that the legislature intended to afford."); City of Madison v. Hyland, Hall, & Co., 73 Wis. 2d 364, 373, 243 N.W.2d 422 (1976) (quoting Stone v. Inter-State Exchange, 200 Wis. 585, 589, 229 N.W 26 (1930) ("Under the accepted law of Wisconsin and of other jurisdictions, remedial statutes should be liberally construed 'to suppress the mischief and advance the remedy which (the statute) intended to afford.'")).
All subsequent references to the Wisconsin Statutes are to the 2003-04 version unless otherwise noted.
Reference
- Full Case Name
- Racine Harley-Davidson, Inc., Petitioner-Respondent-Petitioner, v. State of Wisconsin Division of Hearings and Appeals, Respondent, Harley-Davidson Motor Company, Inc., Participant-Appellant
- Cited By
- 84 cases
- Status
- Published