Philip Myers v. Wisconsin Department of Natural Resources
Philip Myers v. Wisconsin Department of Natural Resources
Opinion of the Court
*49*179¶ 1 Philip and Terrie Myers seek review of an unpublished per curiam decision of the court of appeals
¶ 2 In 2001, the Myers were granted a permit by the DNR and built a pier at their waterfront property on Lake Superior. In 2012 and 2013, the DNR received *180complaints from a neighboring property owner about the Myers' pier. The DNR conducted an investigation and requested that the Myers substantially modify their pier. The Myers declined to make the DNR's proposed changes. The DNR then issued a "Notice of Pending Amendment," held a public informational hearing, and ultimately issued a formal permit amendment requiring the Myers to significantly change their pier in one of two ways.
¶ 3 The Myers declined to comply with the DNR's permit amendment and instead filed a petition for Wis. Stat. ch. 227 (2015-16)
¶ 4 The court of appeals affirmed the circuit court's conclusion that the DNR had the authority to issue the Myers' permit amendment. The court of appeals reversed the circuit court as to the statutory exemptions, concluding as a matter of law that the statutory exemptions did not apply.
¶ 5 On petition to this court, the Myers seek review of three issues: (1) whether the DNR had the authority to amend their permit; (2) whether two exemptions in
¶ 6 We conclude that the DNR did not have the authority to unilaterally amend the Myers' permit. We therefore reverse the decision of the court of appeals. Because the DNR did not have the authority to amend the Myers' permit, we need not reach the issues related to the application of the statutory exemptions set forth in
I. FACTUAL BACKGROUND AND PROCEDURAL POSTURE
¶ 7 The Myers own waterfront property on Madeline Island on Lake Superior. In December 1999, the Myers filed an application, pursuant to
¶ 8 In June 2001, the DNR held a contested hearing on the Myers' permit application. On July 23, 2001, an administrative law judge (ALJ) granted the Myers "a permit under
¶ 9 The Myers completed construction of their pier in October 2001 in accordance with the specifications set forth in the permit. In 2012 and 2013, the DNR received complaints from a neighboring riparian property owner who alleged that there was shoreline erosion and a loss of riparian property
¶ 10 As a result of these complaints, the DNR conducted an investigation and consulted with a coastal engineer, Gene Clark. Clark visited the Myers' property and wrote a report, detailing his opinion as to the effects of the Myers' pier. Clark ultimately concluded that because of "complexity of the mix of older and newer structures," as well as the fact that some littoral material "existed with just the older structures in place several decades ago," it was "extremely difficult to estimate how much if any additional littoral *183material trapping is occurring due only to the [Myers'] newer pier structures." The DNR sent the Myers a letter in July 2013, informing them that their pier was not in compliance with the 2001 permit. The DNR informed the Myers that the flow-through opening was not functioning as intended. Further, the DNR required the Myers to remove the two 24-foot cribs and replace the "bridge" between the crib and the L with a different system that allowed for the free movement of water and sediment. The Myers declined to institute the DNR's proposed changes.
¶ 11 In November 2013, the DNR issued a Class I "Notice of Pending Amendment" indicating that it proposed to amend the Myers' 2001 permit to require expansion of the flow-through opening from 12 to 60 feet. The notice requested public comment on the proposed amendment. On January 7, 2014, the DNR held a public informational hearing on the amendment. An engineer testified in support of the Myers at the public informational hearing, asserting that the amendment was not supported by the site observations or any relevant technical evaluation.
*51¶ 12 On April 21, 2015, 14 years after the original permit was issued, and 15 months after the public hearing, the DNR issued an amendment which required the Myers to modify their pier in one of two ways. The DNR gave the Myers the following options: (1) remove two waterward cribs on the main stem of the pier to expand the flow-through opening from 12 to 60 feet; or (2) provide the DNR with certified engineering plans that depict an alternative opening to allow *184for the free movement of water and sediment. The DNR asserted that it had authority under
¶ 13 The Myers filed a petition for Wis. Stat. ch. 227 judicial review in the Ashland County Circuit Court.
¶ 14 The circuit court rejected the Myers' claim that the DNR lacked the authority to amend their 2001 permit. However, the circuit court remanded the case to the DNR for additional factual development as to whether the exemptions in
¶ 15 The court of appeals issued a decision affirming in part and reversing in part the circuit court. The court of appeals affirmed the circuit court's holding that the DNR had the authority to amend the permit and reversed the circuit court's remand for additional fact-finding. The court of appeals concluded as a matter of law that neither of the exemptions *185applied because of "implicit findings" made by the DNR at the public informational hearing.
¶ 16 The Myers raise three issues on appeal to this court: (1) whether the DNR had authority to amend their permit; (2) whether two exemptions in
II. STANDARD OF REVIEW
¶ 17 On a Wis. Stat. ch. 227 appeal we review the decision of the agency, not the circuit court. Hilton ex rel. Pages Homeowners' Ass'n v. DNR,
¶ 18 This case involves interpretation of Wis. Stat. ch. 30, which regulates navigable waters. Statutory interpretation is a question of law that this court *186reviews de novo. Noffke ex rel. Swenson v. Bakke,
III. ANALYSIS
¶ 19 This dispute centers around whether the DNR had authority to unilaterally amend the Myers' permit 14 years after their pier was placed. Although not explicitly argued by the DNR, the court of appeals held that the DNR had the authority to amend the Myers' permit by reserving to itself that authority in Condition 1. Before this court, the DNR cites to two statutory authorizations of power in support of its ability to amend the Myers' permit:
*187A. Reservation of Authority
¶ 20 We first address the court of appeals' holding that the DNR could, absent statutory authorization, reserve to itself the authority to amend the Myers' permit in Condition 1. See Myers v. DNR, No. 2016AP1517, unpublished slip op., ¶ 14,
¶ 21 We conclude that the court of appeals erred in holding that Condition 1 in and of itself provided the DNR the authority to amend the Myers' permit. It is important to remember that administrative agencies are creatures of the legislature. An administrative agency has only those powers expressly conferred or necessarily implied by the statutory provisions under which it operates. See *53*188Kimberly-Clark Corp. v. Public Serv. Comm'n of Wis.,
B. Wisconsin Stat. § 30.12(3m)(d)2.
¶ 22 The DNR argues that it had statutory authority pursuant to
(c) The department shall issue an individual permit to a riparian owner for a structure ... if the department finds that all of the following requirements are met:
1. The structure or deposit will not materially obstruct navigation.
2. The structure or deposit will not be detrimental to the public interest.
3. The structure or deposit will not materially reduce the flood flow capacity of a stream.
*189¶ 23 The DNR likens Condition 1 to a "reasonable condition[ ] to implement the criteria under par. (c)1. to 3.," pursuant to
¶ 24 There is no support in the plain language of Wis. Stat. ch. 30 for the DNR's claim that a pier permit carries with it an ongoing requirement to satisfy the criteria in
¶ 25 The DNR also argues that "the entire tenor" and "spirit" of Wis. Stat. ch. 30 suggests that a permit includes a requirement *54to continuously satisfy *190the criteria in
C. Wisconsin Stat. § 30.2095
¶ 26 Apart from the alleged authorization given to the DNR in
¶ 27 The Myers contend that their permit was akin to a building permit and that, according to its terms, it expired on July 23, 2004, three years after its issuance. The DNR asserts, and the court of appeals agreed, that because the pier was completed within the time limit set forth in the permit, the Myers' permit *191did not expire. As additional support for its position, the DNR asserts that a permit controls ongoing maintenance and use of a pier, even after its placement.
¶ 28 We agree with the Myers' interpretation and conclude that, based upon a plain reading of the language of Wis. Stat. ch. 30, a permit issued under
¶ 29 The Myers were granted "a permit under
¶ 30 "[S]tatutory language is interpreted in the context in which it is used; not in isolation but as part of a whole; in relation to the language of surrounding or closely-related statutes; and reasonably, to avoid absurd or unreasonable results." Kalal,
¶ 31 According to the DNR and the court of appeals, if pier placement is complete within the timeframe determined by
¶ 32 It is also noteworthy that the legislature made a distinction between the term "void," as used in
¶ 33 A review of the language used in ch. 30 further supports the conclusion that a pier permit is akin to a building permit and includes no additional requirements for ongoing maintenance and use. As previously noted, "[s]tatutory language is interpreted in the context in which it is used; not in isolation but as part of a whole; in relation to the language of surrounding or closely-related statutes; and reasonably, to avoid absurd or unreasonable results." Kalal,
¶ 34 Where the legislature intends to include the responsibility of ongoing maintenance, it specifies as such, as seen in
¶ 35 Because we conclude that the DNR lacked authority to amend the Myers' permit, we need not reach the issues that surround the application of the statutory exemptions in
IV. CONCLUSION
¶ 36 On petition to this court, the Myers sought review of the DNR's authority to amend their 2001 pier permit. The Myers also sought review as to whether two exemptions in
¶ 37 We conclude that the DNR could not reserve to itself the authority to amend the Myers' permit through Condition 1. We conclude that
By the Court. -The decision of the court of appeals is reversed.
A. W. Bradley, J. dissents (opinion filed).
Myers v. DNR, No. 2016AP1517, unpublished slip op.,
The Honorable Robert E. Eaton of Ashland County Circuit Court presided.
All subsequent references to the Wisconsin Statutes are to the 2015-16 version unless otherwise indicated.
Riparian rights are "special rights to make use of water in a waterway adjoining [an] owner's property." Movrich v. Lobermeier,
Shortly thereafter, the Myers filed a petition for administrative review of the DNR's July 2013 letter. However, the DNR denied the request for review on the ground that no final agency action had taken place.
Following the DNR's issuance of the permit amendment, the Myers filed a request for a contested case hearing. After the DNR granted the request, the Myers waived that hearing and pursued judicial review. The parties entered into a stipulation that the DNR would not raise the exhaustion doctrine as a defense to the Myers' petition.
As the ALJ noted, this type of condition was "standard for solid dock structures on Lake Superior." There is no support for the premise that by accepting the permit the Myers waived their right to challenge future DNR actions.
The rules promulgated by the DNR for pier-permitting standards are found in Wis. Admin. Code § NR 326 (Apr. 2005).
We decline to address legislative history or alleged legislative intent because the statute is unambiguous. If statutory language yields a "plain, clear statutory meaning, then there is no ambiguity," and there is no need to consult extrinsic sources of interpretation. State ex rel. Kalal v. Circuit Court for Dane Cty.,
However, the DNR conceded at oral argument that there is no statutory language that indicates that a pier permit is a "possession permit."
Because a permit to build a pier expires upon its placement, the Myers' permit expired in October 2001 and would have been void by July 23, 2004 had the pier not been placed.
The dissent opines that the DNR selected a "permit amendment track," via its necessarily implied authority. Dissent, ¶ 73. The DNR did not follow any statutorily proscribed procedures; instead, the DNR appeared to act unilaterally in demanding changes to the Myers' pier.
Dissenting Opinion
¶ 38 Although the administrative law judge initially found that granting the Myers' permit request would likely not have detrimental effects, he also observed "it is not always possible to predict the impact of a particular structure in such a dynamic system."
¶ 39 The ALJ's admonition proved prescient. A decade after the Myers completed construction of their pier, the DNR received complaints from neighbors that the Myers' pier was not operating as intended. Specifically, the neighbors asserted that the pier was exacerbating shoreline erosion and causing "loss of riparian property." Majority op., ¶ 9.
¶ 40 To remedy the now-apparent defects in the pier, the DNR issued a permit amendment requiring that the Myers modify their pier in one of two ways. Id., ¶12. The Myers declined to pursue either modification option presented by the DNR and instead have pursued judicial review of the DNR's action.
¶ 41 Upon review, the majority concludes that the DNR lacks the statutory authority to amend the permit. Id., ¶37; see
A
¶ 42 The majority's first error lies in reading words into the pier-permitting statutes that simply are not there.
¶ 43 Pursuant to
¶ 44 Such a distinction is salient because if the permit is for building only, then the permit conditions would not govern the ongoing maintenance of the pier. Conversely, if the permit is required for maintenance of a pier, then the obligations it creates do not end when construction is complete.
¶ 45 As a threshold to its analysis, the majority correctly sets forth the principles that govern statutory interpretation. See majority op., ¶ 18. Statutory interpretation begins with the language of the statute. State ex rel. Kalal v. Circuit Court for Dane Cty.,
*197¶ 46 With repeated assurances to the reader that it is embracing a plain meaning interpretation, the majority warns of the nemesis of plain meaning, i.e. writing words into the statute. Majority op., ¶ 24. And it advises the reader that we will refrain from doing so here. Id. Nevertheless, after such proclamations and protestations, the majority fundamentally alters the statute by writing into it an outcome-determinative word not written by the legislature. Although it pays lip service to a plain meaning interpretation, the majority fails to follow it.
¶ 47 Nowhere in the statutes on which the majority relies does the legislature delineate that a pier permit is a "construction" or "building" permit. This stands in marked contrast to the numerous statutes where the legislature has specified that a permit is a "construction" permit or "building" permit. See, e.g.,
¶ 48 Additionally, a standard principle of statutory interpretation requires that, except for technical or specially defined words, we give words their common, ordinary, and accepted meaning. Kalal,
¶ 50 As set forth in chapter 30, the plain language of the statutory scheme leads me to the conclusion that a permit is required to maintain a pier, not only to construct one. For example, the plain language of
*199¶ 51 The upshot of my analysis is that the Myers' permit did not "expire" when construction on their pier was finished. Rather, the statutes set forth a continuing obligation to meet the requirements of the permit.
B
¶ 52 The majority's second error lies in its failure to follow its own analytical construct.
¶ 53 It correctly observes that "[a]n administrative agency has only those powers expressly conferred or necessarily implied by the statutory provisions under which it operates." Majority op., ¶ 21 (emphasis added) (citing Kimberly-Clark Corp. v. Public Serv. Comm'n of Wis.,
¶ 54 A permit for the placement of a pier shall not issue if the pier materially obstructs navigation, is detrimental to the public interest, or materially reduces the flood flow capacity of a stream.
¶ 55 Essentially, the majority determines that the DNR has the power to issue a permit that is akin to a building permit, but not a permit for the maintaining of a pier. It bases its conclusion on the language *200of the statute, but neglects to even consider that such a power is "necessarily implied" in the statutory scheme. In my view, it is.
¶ 56 Wisconsin Stat. § 30.12(3m)(c) clearly provides that a permit shall issue if the three enumerated criteria are met. As a corollary, if any of the criteria are not met, a permit shall not issue.
¶ 57 The question raised in this case is what happens when a pier meets the criteria *59of
¶ 58 In order to bring the pier into compliance with the statute, the permit must be amended, and the statute "necessarily implies" that the DNR has this power. If the DNR did not have this power, the result would be a host of piers that violate the requirements of
C
¶ 59 The majority's third error lies in reaching an unreasonable result.
¶ 60 In denying the DNR the ability to amend the Myers' permit, the majority allows for the very thing the legislature has explicitly prohibited in
¶ 61 The majority's result is unreasonable because it allows for a pier to remain in a state of disrepair and impairment of the public interest. Wisconsin Stat. § 30.12(3m)(c)2. is clear in its mandate that a permit shall not issue if a structure will be detrimental to the public interest. Yet, the majority allows for this very thing-as long as a pier does not begin to become detrimental to the public interest until after it is constructed, the permit for that pier can never be amended.
¶ 62 It is also unreasonable to potentially leave the DNR toothless in the face of a pier that obstructs navigation, is detrimental to the public interest, or will reduce the flood flow capacity of a stream. If the DNR cannot modify the permit to remedy a detrimental condition in a pier, its remaining option (absent informal resolution) is to bring an enforcement action. See
¶ 63 However, in some situations a pier may be exempt from enforcement. See
¶ 64 Although the Myers' pier was not contrary to the public interest when it was built, it is perfectly plausible that conditions may change. Here it is alleged *202that the pier has become contrary to the public interest or interferes with the rights of other riparian owners.
¶ 65 Indeed, the DNR determined that "the existing 12-foot flow-through opening is not functioning as intended consistently enough to provide sufficient movement of water and sediment on a regular basis to prevent the interruption of the natural littoral processes." The impact is that "[t]his disruption, in turn, is exacerbating the formation of land on the bed of Lake Superior and starving adjacent 'down-drift' properties of sediment."
*60¶ 66 If the DNR cannot modify a permit and cannot bring an enforcement action because of an exemption, the public interest in maintaining the waters of this state falls by the wayside in the event lake conditions change. The DNR should not be so hamstrung in fulfilling its duty.
II
¶ 67 Because I determine that the DNR has the necessarily implied authority to amend the Myers' pier permit, I briefly address the Myers' arguments that statutory exemptions bar such permit amendments.
¶ 68 The grandfather exemption,
[A] riparian owner of a pier or wharf that was placed on the bed of a navigable water before April 17, 2012, is exempt from the permit requirements under this section unless any of the following applies:
1m. The department notified the riparian owner before August 1, 2012, that the pier or wharf is detrimental to the public interest.
2. The pier or wharf interferes with the riparian rights of other riparian owners.
¶ 69 If the grandfather exemption applies, the consequences are set forth in
[A] riparian owner who is exempt ... may do all of the following:
1. Repair and maintain the exempt structure without obtaining a permit from the department under this section unless the owner enlarges the structure.
2. If the exempt structure is a pier or wharf, relocate or reconfigure the pier or wharf if the riparian owner does not enlarge the pier or wharf.
In other words, if the exemption applies, the Myers need not obtain a permit to repair and maintain the pier.
*204¶ 70 The DNR contends that the grandfather exemption does not apply here because the Myers possess a permit for their pier. I agree. The grandfather exemption states that if the conditions are met, a pier owner is not required to "obtain" a permit in order to maintain the pier.
*61¶ 71 Similarly, the enforcement exemption does not apply. The enforcement exemption provides:
The department may not take any enforcement action under this chapter against a riparian owner for the placement of any of the following:
1. A structure for which the department has issued a permit under this section, if the structure is in compliance with that permit.
2. A structure for which the department has issued a written authorization, if the structure is in compliance with that written authorization.
3. A structure that is exempt under par. (b) [the grandfather exemption].
¶ 72 Any argument that this exemption is applicable must be based on the premise that DNR's actions here in amending the permit constitute an "enforcement action." This premise fails.
¶ 73 Pursuant to chapter 30 of the Wisconsin statutes, the DNR can remedy a defect in a pier by following one of two tracks: permit amendment by *205way of its necessarily implied authority or enforcement via
¶ 74 There are key differences between the permit amendment and enforcement tracks. An enforcement action is brought pursuant to
¶ 75 That is not what happened in this case. Here there was only a public informational hearing. A hearing examiner did not enter any injunction against the Myers. Rather, the DNR issued a permit amendment. Because there was no enforcement action, the enforcement exemption is inapplicable.
¶ 76 In sum, the majority allows a pier with clear defects to remain in a state of disrepair and impairment of the public interest. The impact of the majority opinion, however, is not limited to the Myers' pier. On bodies of water large and small, the majority opinion raises the specter that riparian owners cannot rely on the DNR to protect the public interest if a neighboring pier stops working as intended due to shifting lake conditions. Because this result is contrary to the legislative intent, I respectfully dissent.
See State v. Sample,
Two examples offered are "the strategic placement of products at the entrance of a store" and "the placement of microphones around the room."
An enforcement action can be maintained for "a possible violation of s. 281.36 or of the statutes relating to navigable waters or a possible infringement of the public rights relating to navigable waters."
The Myers also argue that the evidence presented at the informational hearing was insufficient to support the permit amendment. The DNR made the following factual finding:
Based on the information gathered and further discussion with the Sea Grant coastal engineer, the Department has determined that the existing 12-foot flow-through opening is not functioning as intended consistently enough to provide sufficient movement of water and sediment on a regular basis to prevent the interruption of the natural littoral processes. This disruption, in turn, is exacerbating the formation of land on the bed of Lake Superior and starving adjacent 'down-drift' properties of sediment.
Such a finding is certainly sufficient to support the determination that the pier is detrimental to the public interest.
Reference
- Full Case Name
- Terrie MYERS and Philip Myers, Petitioners-Appellants-Cross-Respondents-Petitioners, v. WISCONSIN DEPARTMENT OF NATURAL RESOURCES, Respondent-Respondent-Cross-Appellant.
- Cited By
- 13 cases
- Status
- Published