DAVIS, Justice:
Ronald J. Hicks; Robert J. Claus, Jr.; Benson B. Flanagan; and Terry Nichols, petitioners/petitioners below (hereinafter "the Petitioners"), appeal from an order of the Circuit Court of Kanawha County dismissing their declaratory judgment petition. The Petitioners asked the lower court to declare that the West Virginia Consolidated Public Retirement Board, respondent/respondent below (hereinafter "the Board"), could not impose disability re-certification requirements of an amended statute and new rule upon them. The circuit court determined that the Petitioners failed to exhaust their administrative remedies and, therefore, dismissed the case. In this appeal, the Petitioners contend that the circuit court erred in not reaching the merits of their petition because the doctrine of exhaustion of administrative remedies was inapplicable to the facts of their case. After a careful review of the briefs, limited record and listening to the arguments of the parties, we find that the Petitioners' rule-based claim was properly before the circuit court; therefore, we reverse, in part; affirm, in part; and remand for further disposition.
The four Petitioners in this case are former West Virginia State Troopers. The Petitioners are receiving disability retirement benefits from the West Virginia Police Death, Disability and Retirement Fund.
In 2010, the Board sent each of the Petitioners a letter informing them that they had to undergo a medical examination to determine whether their disabilities had improved. The letter further informed the Petitioners that they had to submit their medical records to a physician chosen by the Board to perform the examinations. It also was indicated in the letter that, if the medical examination revealed that a Petitioner had recovered from his disability sufficient to perform the duties of a trooper, his disability retirement benefits would be terminated. The letter was based upon requirements set out under the 2007 amended version of W. Va.Code § 15-2-31 (2007) (Repl.Vol.2009)
Shortly after receiving the Board's letter, the Petitioners jointly filed the instant declaratory judgment action on August 23, 2010.
The Board filed a motion to dismiss the petition.
This matter has been brought to the Court based upon the trial court's order granting the Board's motion to dismiss. In general, this Court will apply a de novo standard of review to a circuit court's order granting a motion to dismiss. See Syl. pt. 2, State ex rel. McGraw v. Scott Runyan Pontiac-Buick, Inc., 194 W.Va. 770, 461 S.E.2d 516 (1995). This same standard applies to our review of statutes and rules relevant to this case. As we held in Syllabus point 1 of Appalachian Power Co. v. State Tax Department
The Petitioners asked the circuit court to declare that the Board's implementation of a statute and rule, which required them to submit to disability re-certification examinations, could not be enforced against them. In dismissing the petition, the circuit court held that it could not reach the merits of the issues because the Petitioners first had to present the issues to the Board in an administrative proceeding. Here, the Petitioners argue that it would have been futile to present the issues to the Board. Therefore, they contend that they did not have to exhaust their administrative remedies.
The procedural issues presented by the Petitioners may be divided into two categories: statute-based and rule-based. The statute-based procedural arguments are controlled by W. Va.Code § 29A-4-1 (1964) (Repl.Vol.2012). The rule-based procedural arguments are governed by W. Va.Code § 29A-4-2 (1982) (Repl.Vol.2012).
The circuit court found that the issues raised by the Petitioners had to be presented to the Board in an administrative proceeding
Franklin D. Cleckley et al., Litigation Handbook on the West Virginia Rules of Civil Procedure, § 12(b)(1), at 339-40 (4th ed.2012) (emphasis added; footnotes omitted). This Court has long held that "[t]he general rule is that where an administrative remedy is provided by statute or by rules and regulations having the force and effect of law, relief must be sought from the administrative body, and such remedy must be exhausted before the courts will act." Syl. pt. 1, Daurelle v. Traders Fed. Sav. & Loan Ass'n, 143 W.Va. 674, 104 S.E.2d 320 (1958). It was specifically held by this Court in Syllabus point 4 of Bank of Wheeling v. Morris Plan Bank & Trust Co., 155 W.Va. 245, 183 S.E.2d 692 (1971), that "[p]roceedings in equity for injunctions cannot be maintained where there is an administrative remedy provided by statute which is adequate and will furnish proper remedy."
The exhaustion of administrative remedies doctrine is not ironclad; exceptions to the rule exist. "The factors courts have cited to excuse failure to exhaust are: (1) that the claim is collateral to a demand for benefits; (2) that exhaustion would be futile; and (3) that plaintiffs would suffer irreparable harm if required to exhaust administrative remedies." Pavano v. Shalala, 95 F.3d 147, 150 (2d Cir.1996). See also Syl. pt. 6, Wiggins v. Eastern Assoc. Coal Corp., 178 W.Va. 63, 357 S.E.2d 745 (1987) ("This Court will not require the exhaustion of administrative remedies where such remedies are duplicative or the effort to obtain them futile."). We also have recognized that "[t]he rule which requires the exhaustion of administrative remedies is inapplicable where no administrative
In this proceeding, the trial court applied the doctrine of exhaustion of administrative remedies without making any distinction between the Petitioners' statute-based claims and rule-based claims.
The Board notified the Petitioners that they had to undergo disability re-certification examinations. Part of the authority for the Board's request was contained in the amended 2007 version of W. Va.Code § 15-2-31 (2007) (Repl.Vol.2009).
The Petitioners sought to have the trial court declare, on constitutional grounds, that the 2007 version of W. Va.Code § 15-2-31 could not be applied to them. They asserted that the 2007 version took away a vested right they had to the possibility of being reinstated to the State Police. The Petitioners also contended that the 2007 version of the statute infringed on their rights by immediately terminating their benefits.
In its motion to dismiss the petition, the Board argued that the Petitioners' claims were not properly before the circuit court because the claims first had to be presented in an administrative proceeding. The Petitioners argued below, as they do in this appeal, that the Board did not have authority to rule on their constitutional attack of the statute, and, therefore, it would be futile to litigate the issues there.
(Emphasis added).
In the context of the facts of this case, we do not find any ambiguity in the above statute. See Syl. pt. 2, State v. Elder, 152 W.Va. 571, 165 S.E.2d 108 (1968) ("Where the language of a statute is clear and without ambiguity the plain meaning is to be accepted without resorting to the rules of interpretation."). This statute empowers an administrative agency, if requested, to make declaratory rulings on statutes and rules that the agency implements. The statute also grants judicial review of the agency's declaratory rulings. In view of the clear requirements of the statute, we hold that, under W. Va.Code § 29A-4-1 (1964) (Repl. Vol.2012) of the West Virginia Administrative Procedures Act, an agency has authority, upon petition by an interested person, to issue a declaratory ruling with respect to the applicability to any person, property or state of facts of any rule or statute enforceable by it.
This Court has held that "[t]he West Virginia Consolidated Public Retirement Board is subject to and governed by the West Virginia Administrative Procedures Act set forth in West Virginia Code §§ 29A-1-1 to -7-4 (1993)." Syl. pt. 1, State ex rel. Young v. Sims, 192 W.Va. 3, 449 S.E.2d 64 (1994). Thus, in view of our holding, it is clear that the Board had authority under W. Va.Code § 29A-4-1 to address the substantive issues raised by the Petitioners with respect to the
In addition to challenging the application of the 2007 version of W. Va.Code § 15-2-31, the Petitioners also challenged the application of the Board's 2008 disability re-certification rule. The disability re-certification rule, C.S.R. § 162-9-13 (2012), provides in pertinent part:
The Petitioners argued to the circuit court that the disability re-certification requirements under W. Va.C.S.R. § 162-9-13 represent adverse substantive changes that were not required previously by any law. The circuit court found that this issue also was required to be presented to the Board before being litigated in court. We disagree.
West Virginia Code § 29A-4-1 allows a person to file a declaratory judgment proceeding with an agency to challenge a statute or rule. However, W. Va.Code § 29A-4-2 (1982) (Repl.Vol.2012)
(Emphasis added).
The above statute, for purposes of this case, is without ambiguity. See Syl. pt. 5, State v. General Daniel Morgan Post No. 548 Veterans Foreign Wars, 144 W.Va. 137, 107 S.E.2d 353 (1959) ("When a statute is clear and unambiguous and the legislative intent is plain, the statute should not be interpreted by the courts, and in such case it is the duty of the courts not to construe but to apply the statute."). This Court observed in passing in Appalachian Power Co. v. State Tax Department of West Virginia, 195 W.Va. at 588 n. 18, 466 S.E.2d at 439 n. 18, that "W. Va.Code, 29A-4-2 expressly provides that an interested party may seek judicial review of any rule[.]" See Wheeling Barber Coll. v. Roush, 174 W.Va. 43, 45, 321 S.E.2d 694, 696 (1984) ("Judicial review of a new agency rule is provided for in W. Va.Code 29A-4-2 [1982].").
This Court is of the opinion that W. Va. Code § 29A-4-1 and W. Va.Code § 29A-4-2 must be read in para materia. Under W. Va.Code § 29A-4-1, the Legislature has empowered citizens to go directly to an agency to challenge the application of an agency rule or statute. However, the Legislature has deemed it appropriate for citizens to have the discretion to bypass an agency and go directly to the circuit court to challenge the application of an agency rule. It is obvious to this Court that the Legislature believed that, in some instances, it may be futile to ask an agency to invalidate or find fault with a rule created by the agency. For this reason, the Legislature has given citizens the discretion to challenge an agency rule in circuit court in the first instance. To be clear, the statutes provide that a person may seek declaratory relief from an administrative agency regarding both a statute and a rule; however, the
Based upon the plain language of W. Va. Code § 29A-4-2(a), we now hold that, under W. Va.Code § 29A-4-2(a) (1982) (Repl.Vol. 2012) of the West Virginia Administrative Procedures Act, a person may file a declaratory judgment action in the Circuit Court of Kanawha County to challenge application of an agency rule, without first administratively litigating the issue before the agency.
As a consequence of our holding, we find that the circuit court had jurisdiction to address the merits of the Petitioners' challenge to the application of W. Va.C.S.R. § 162-9-13. This issue must therefore be reversed and remanded for the circuit court to consider the merits of the Petitioners' rule-based arguments.
Finally, the Petitioners also sought to litigate a requirement in the letter they each received notifying them of the disability re-certification requirement. Specifically, the letter required the Petitioners to obtain their medical records and send them to the physician performing the examinations. The Petitioners argued that the requirement that they pay for obtaining their medical records was inconsistent with all versions of W. Va. Code § 15-2-31, which required the Board to pay all costs involved with disability re-certification. Insofar as this letter-based issue involves the Board's interpretation of W. Va. Code § 15-2-31, it is also a matter that the circuit court has authority to address on remand pursuant to W. Va.Code § 29A-4-2(a).
In view of the foregoing, we affirm the trial court's dismissal of the Petitioners' statute-based claims, but reverse the dismissal of the rule-based and letter-based claims. Moreover, we remand this case for further disposition consistent with this opinion.
Affirmed, in Part; Reversed, in Part; and Remanded.
Bank of Wheeling v. Morris Plan Bank & Trust Co., 155 W.Va. 245, 247, 183 S.E.2d 692, 694 (1971) (citations omitted).
W.Va.Code § 15-2-31 (2007) (Repl.Vol.2009) (emphasis added).
W.Va.Code § 15-2-31 (1977) (emphasis added).
W.Va.Code § 15-2-31 (1994) (Repl.Vol.2004) (emphasis added).
W.Va.Code § 15-2-31 (2011) (Supp.2012) (emphasis added).