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Zomer v. West River Farms9/14/2005
IMT Insurance Company appeals the district court's decision to affirm the Workers' Compensation Commissioner's reformation of IMT's insurance contract with West River Farms, Inc. AFFIRMED.
Considered by Sackett, C.J., and Mahan and Miller, JJ.
IMT Insurance Company appeals the district court's decision to affirm the Workers' Compensation Commission's reformation of IMT's insurance contract with West River Farms, Inc. Specifically, IMT argues that (1) Zomer did not properly raise the issue of contract reformation; (2) the commissioner abused his discretion when he denied IMT's motion for an evidentiary hearing on the issue of mutual mistake; (3) the district court applied an improper standard of review in affirming the commissioner's decision; and (4) the district court erred in affirming the commissioner's decision. We affirm.
I. Background Facts and Proceedings
Mark Zomer was injured on November 8, 1995, at his job at West River Farms, Inc. West River Farms was insured by a workers' compensation insurance policy from IMT Insurance. Gertrude Blom, West River Farms' president and Zomer's mother-in-law, had been purchasing workers' compensation insurance form IMT through her local agent for over ten years. It was her intent and belief that the insurance would cover family-member employees, including Zomer. Evidence indicates that her local insurance agent also believed Zomer was covered by West River Farms' policy. On December 4, 1995, IMT Insurance refused to make payment on Zomer's hospital expenses. IMT claimed that West River Farms had no family-member coverage under its policy.
Zomer filed a petition with the Iowa Workers' Compensation Commissioner. On August 23, 1999, the commissioner's final decision held that there had been a mutual mistake between the parties as to West River Farms' policy coverage. The commissioner reformed the insurance contract, providing coverage for Zomer's injury. The district court reversed the commissioner's decision, holding the commissioner lacked the jurisdiction to reform a contract. The court of appeals affirmed the district court. On further review, the supreme court vacated the court of appeals decision and reversed and remanded the district court ruling. The supreme court found that under Iowa Code chapter 85 (1997), the commission had the power to reform the workers' compensation policy to cover Zomer. Zomer v. West River Farms, Inc., 666 N.W.2d 130, 135 (Iowa 2003).
On remand, IMT filed a motion for an evidentiary hearing on the mutual mistake issue. The commissioner denied the motion. The commissioner then adopted the original commissioners' decision from August 23, 1999. The district court affirmed both the denial of the evidentiary hearing and the adoption of the original agency decision. IMT appeals.
II. Standard of Review
We review agency decisions pursuant to Iowa Code section 17A.19 (1999). IBP, Inc. v. Harpole, 621 N.W.2d 410, 414 (Iowa 2001). We may affirm, remand, reverse, modify, or grant other appropriate relief if the agency action is (a) in violation of constitutional or statutory provisions; (b) in excess of the statutory authority of the agency; (c) in violation of an agency rule; (d) made upon unlawful procedure; (e) affected by other error of law; (f) in a contested case, unsupported by substantial evidence in the record made before the agency when that record is viewed as a whole; or (g) unreasonable, arbitrary or capricious or characterized by an abuse of discretion or a clearly unwarranted exercise of discretion. Iowa Code ยง 17A.19(8)(a)-(g).
We are bound by the agency's findings if they are "supported by substantial evidence when t
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