Klamath Tribute Center v. Mortuary and Cemetery Bd.

When courts are required to interpret federal regulation, a federal court looks to the plain meaning of the wording or the administrative interpretation, if neither are present, “the court considers such factors as the overall purpose of the governing statute, the overall purpose of the regulation, the history of the regulation, and the practical consequences of suggested interpretations to determine the intent of the enacting body.” Hagan v. Gemstate Manufacturing., Inc., 328 Or 535, 545, 982 P2d 1108 (1999).

Plaintiff appealed from a final order by the State Mortuary and Cemetery Board who concluded that Plaintiff violated multiple laws governing the death care industry and imposed $14,000 in civil penalties. Plaintiff assigned error to Defendant's misinterpretation of 16 CFR section 453.5 which led Defendant to conclude Plaintiff's violations. On appeal, Plaintiff argued that the section that stated, "If we charged embalming, we will explain why below," was included on the mandatory form, which was enough- the actual explanation below was not required. In response, the Board argued that omitting the explanation would make no sense and would be misleading, which went against the purpose of the regulation, and that the rules in place made no reference to exceptions in implementing or following through with contractual arrangements, so, Plaintiff was responsible regardless of the reason why. When courts are required to interpret federal regulation, a federal court looks to the plain meaning of the wording or the administrative interpretation, if neither are present, "the court considers such factors as the overall purpose of the governing statute, the overall purpose of the regulation, the history of the regulation, and the practical consequences of suggested interpretations to determine the intent of the enacting body." Hagan v. Gemstate Manufacturing., Inc., 328 Or 535, 545, 982 P2d 1108 (1999). The Oregon Court of Appeals rejected both of Plaintiff's assignments of error. Affirmed.