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Case No. 18-0189

Julie Pfaltzgraff
v.
Iowa Department of Human Services

Julie Pfaltzgraff, a child care provider who contracted with the Iowa Department of Human Services (DHS) to provide child care on behalf of the state and federal government as part of the Child Care Assistance Program (CCAP), appealed the district court’s ruling on judicial review. The court of appeals affirmed in part, reversed in part, and remanded. The court found Pfaltzgraff possessed a protected property interest in her child care assistance provider billings, and she was not provided the procedural due process associated with this interest. The court also determined Pfaltzgraff should be awarded attorney fees for her recoupment appeal from the administrative hearing level through final order of this court. The court further found error was not preserved on her claim regarding DHS’s refusal to process her reapplication for a CCAP agreement. DHS seeks further review.

County:
Polk
Trial Court Case No.:
CVCV054004

Resister

Julie Pfaltzgraff

Applicant

Iowa Department of Human Services

Attorney for the Resister

Trent W. Nelson

Attorney for the Applicant

Tabitha J. Gardner

Supreme Court

Oral Argument Schedule

15-15-5

Dec 16, 2019 9:00 AM

Briefs

Supreme Court Opinion

Opinion Number:
18-0189
Date Published:
May 29, 2020
Date Amended:
Aug 03, 2020

Court of Appeals

Court of Appeals Opinion

Opinion Number:
18-0189
Date Published:
Jun 19, 2019
Summary

            Appeal from the Iowa District Court for Polk County, Scott D. Rosenberg, Judge.  AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.  Considered by Vogel, C.J., and Potterfield and Doyle, JJ.  Opinion by Doyle, J.  Partial Dissent by Vogel, C.J.  (6 pages)

            Julie Pfaltzgraff’s appeals the district court ruling denying her petition for judicial review, which affirmed Iowa Department of Human Services (DHS) decision confirming the existence of Child Care Assistance Program (CCAP) overpayments and the amount.  OPINION HOLDS: For the reasons set forth in Endress v. Iowa Department of Human Services, No. 18-1329, 2019 WL ________, at *___ (Iowa Ct. App. June 19, 2019), also filed today, we reverse the district court’s ruling in part because the notice the DHS provided concerning recoupment of the CCAP payments made during the appeal process was constitutionally deficient.  On this basis, we reverse the district court’s ruling on judicial review, which affirmed the agency decision regarding recoupment of CCAP overpayments and amount.  And because Pfaltzgraff is entitled to an award of her attorney fees under Iowa Code section 625.29 (2017) for the reasons set forth in Endress, we remand to the district court to determine an appropriate award, which should include appellate attorney fees.  Finally, we affirm the portion of the ruling determining that Pfaltzgraff failed to preserve error on her claim that the DHS violated its own rule in denying her second CCAP application.  PARTIAL CONCURRENCE, PARTIAL DISSENT ASSERTS: For the reasons expressed in my dissent in Endress, I dissent in part from the opinion of the majority, which found the notice to Julie Pfaltzgraff was deficient and she is entitled to attorney fees.  I agree with the majority’s conclusion that error was not preserved on the refusal to process her second application. 

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