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DECISION
The application of the above-named defendant for a review of the sentence of 6 years for first degree burglary with provision that 34 days jail imprisonment is not to affect parole eligibility, imposed on April 15, 1969, was fully heard and after a careful consideration of the entire matter it is decided that:
The sentence be and remain as originally imposed, EXCEPT,
HOWEVER:
(1) The last 3 years of this sentence is ordered suspended, and for that period of time defendant is placed under the jurisdiction of the State Board of Pardons and under its supervision and control subject to all laws, rules and regulations applicable in such cases;
(2) It is specifically directed that defendant’s 34 days imprisonment in the county jail prior to confinement in the State Prison shall be credited to defendant as though already served in the State Prison at the time of reception and shall be so used in computing the date when defendant may be considered for parole eligibility. Respecting this direction concerning defendant’s jail imprisonment, it is our opinion that the law permits no other method of treating the same. Section 95-2315, R.C.M.1947; State v. Zachmeier, 153 Mont. 64, 453 P.2d 783, 26 St. Rep. 210.
While it may be that, aside from the direction given concerning defendant’s 34 days jail imprisonment, the sentencing judge was justified in imposing the sentence he did, nevertheless it has been made to appear to this Court that the interests of justice, the sentencing goals kept- in mind, would be just as well served by an earlier supervised release of this defendant, particularly when it is considered that she committed the crime in the company of a man 10 years her senior, is but 20 years old, of limited education and economic background, and has no prior criminal record. True, other burglaries than the one charged may have been committed, but apparently all were committed over a period of not more than two months, and seem to have been committed, so far as she was concerned, primarily for subsistence, and all under the leadership of older persons.
We thank John L. Hilts, Esq., of the Montana Defender Project for his assistance to the defendant and to the Court.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
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MR. JUSTICE SHEA
delivered the opinion of the Court.
Taylor Rental Corporation appeals an order of the Yellowstone County District Court granting summary judgment in favor of defendant Ted Godwin Leasing, Inc. Taylor Rental raises several issues but, in looking through the record, we find that only a partial summary judgment was entered, and even though the case was certified under Rule 54(b), M.R.Civ.P., the certification is wholly inadequate. For this reason, we decline to hear this appeal, we will not accept another certification, and the appeal is dismissed without prejudice.
The trial court granted summary judgment for Ted God-win Leasing, Inc. (Godwin Leasing) the effect of which was to give Godwin Leasing the right to possession or to the proceeds of the sale of certain equipment which is the subject of this lawsuit. The trial court, however, failed to rule on the counterclaim of Godwin Leasing. In the counterclaim Godwin alleged that Taylor Rental Corporation had agreed to assume the debts of Taylor Rental Center, a franchisee of Taylor Rental Corporation, and that therefore Taylor Rental Corporation owed an unspecified amount of rent on the equipment.
After the trial court had granted Godwin Leasing’s motion for partial summary judgment, the attorney for Taylor Rental Corporation wrote a letter to the trial court and asked the court to certify a partial summary judgment in favor of Godwin Leasing as being “final and subject to appeal”. The letter stated:
“. . . in the interest of judicial economy and administration of justice, we respectfully request that you certify your order of July 7, 1981, as being final and subject to appeal and to complete the records, we would also request you enter an order denying our motion for summary judgment.”
The trial court complied, and, in certifying the cause under Rule 54, merely stated: “That the undersigned [judge] hereby certifies that there is no just reason for delay in the entry of such final judgment in this matter.” That is the entire certification order. In Roy v. Neibauer (1980), Mont., 610 P.2d 1185, 37 St.Rep. 897, because we were concerned with partial summary judgments coming to this Court either uncertified, or improperly certified, we set out in no uncertain terms what must be done to certify a partial summary judgment or partial judgment for appeal. We need not repeat those requirements here except to state that none of them were followed. See also, Reidy v. Anaconda-Deer Lodge County (1981), Mont., 637 P.2d 1196, 38 St. Rep. 2188, where, in holding that we would strictly adhere to the standards in Neibauer, we dismissed an appeal as improperly certified even though the trial court did attempt to comply with Rule 54 requirements.
If parties insist in not complying with the rules and our decisions, we again will be compelled to resort to Rule 32, M.R.App.Civ.P., to impose sanctions for frivolous appeals. Here, the appeal, because it is premature, is obviously frivolous. If improper certifications appear before this Court again, especially where there is no genuine attempt to comply with the rules, we shall treat them as frivolous appeals and impose'sanctions.
We dismiss this appeal, without prejudice.
MR. JUSTICES DALY, HARRISON, SHEEHY and WEBER concur.
|
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MR. JUSTICE DALY
delivered the Opinion of the Court.
The state appeals from an order of the district court, Lewis and Clark County, on January 23, 1974, to suppress evidence, i.e., marijuana. The evidence was seized by Robert Hillis, manager of McDonald’s Restaurant, from a coat belonging to defendant hanging in the manager’s office of the restaurant located in Helena, Montana.
The. Montana County Attorneys Association filed a motion with this Court for leave to appear, file a brief, and make oral argument amicus curiae. Its motion was granted.
Defendant Donald Leroy Coburn was employed as an assistant manager at McDonald’s Restaurant located in Helena. Supervisor was the manager, Robert Hillis. While at home between 4:00 and 6:00 p.m., on November 29, 1973, Hillis received a phone call from Jason Keller, another assistant manager of McDonald’s, alerting him that defendant had some marijuana on the restaurant’s premises. Hillis then called the owner of the store in Billings to inform him of the problem and ask his advice.
Following his conversation with the owner, Hillis went directly to the Helena police department and spoke with one Sgt. Sanguine. The transcript shows this examination of Hillis:
“Q. As closely as possible, would you tell the Court what you said to the officer? A. Okay, I went down and I told him who I was and I told Mm that there was marijuana in the store and that I didn’t want to get the store involved, you know, any more than necessary, and we talked about whether it was legal for him to go get it, and he said that he couldn’t for some legal reason and we talked about whether I should, and he didn’t know whether that was legal or not for sure and he called somebody and talked to them, I don’t remember who it was and I don’t remember whether we ever came to a definite decision as to whether 1 should get it or forget it or what, and I wasn’t going to leave it in the store, I couldn’t have it in the store because if the other kids, if any of them knew about it, because if one can do it they might all do it.”
On cross-examination, Hillis testified:
“Q. I am trying to get some idea, you know, of what your frame of mind was when you left the police department. A. Well, I would have gotten it out of there one way or the other, if the police wouldn’t I would have gotten it out myself.
«# # # '
“Q. Now, you have testified that you had some conversation with the officer about whether or not you should remove this package? A. Right.
“Q. And you also testified that you don’t remember what conclusion was reached? A. No.
“Q. Well, could you say whether or not you had the feeling when you left the police department that you should do it? A. I had the feeling I was going to, I knew I was going to.”
On redirect:
“Q. On this last topic you stated that at the police station or thereafter you went back with the idea of removing the marijuana. Had you formed that idea prior to going to the police station, the general concept that the marijuana should be removed from the premises? A. Tes, before I even went to the police station, definitely.
“Q. So, it wasn’t as a result of your conversation at the police station that you decided to remove the marijuana? A. No, absolutely not.”
On recross:
“Q. And if the police had taken steps or had told you they would take steps, then I presume you wouldn’t have taken any action to remove it? A. Right.”
On cross-examination Sgt. Sanguine testified:
“Q. Did he ask for any advice as to what to do? A. Well, he didn’t want to, he didn’t want the police to enter the premises because of the possibility of bad publicity for the company, but he just wanted us to know he was going to go down there.
“Q. Okay, and what did you do, what did you respond to that? A. Well, I advised him that under the circumstances that if he didn’t want us to enter into it, he would be mainly on his own as to how he wanted to handle it.
# *
“Q. Could you tell us, well, is there anything do you remember any parting words when he left the police station? A. When he left, he was still undecided about how he was going to handle it and I did advise him if he wanted us to that we could wait until Mr. Coburn got off duty and we would confront him down off the premises.
“Q. Did you feel you had, based on your experience as a police sergeant, did you feel that you had sufficient cause at that time to attempt to seize the substance? A. I feel that if he could allow us to enter the premises, we could have.”
On recross:
“Q. I take it that when he came in and told you these problems and the fact that he didn’t want his company involved, that there ensued a discussion about a seizure of these packages by himself, and rather than a seizure of the packages by you, is that true? A. Well, I didn’t advise him to do it that way.
“Q. That’s right, I understand that, but what I want to know is what was said about him doing it. A. Well, I don’t believe at the time he really didn’t know what he was going to do, I can’t say there was too much discussion on him removing it.
“Q. Did you expect him when he came back with the stuff? A. No, I didn’t really, I didn’t think he would come back.” (Emphasis supplied).
Following his conversation with Sgt. Sanguine, Hillis left the police station and went to the restaurant; upon arriving there, he entered the manager’s office. This office was a private office to which only the manager and assistant managers had unlimited access. Hillis then saw defendant’s coat hanging on the wall. He could see a bulge in the hip pocket. He removed the substance, later determined to be marijuana, from defendant’s coat without a search warrant or without express or implied consent from defendant. Hillis then returned to the police station and turned the marijuana over to the police.
In its order suppressing this evidence the district court said in part:
“It is the opinion of this Court that the rule adopted by the Montana Supreme Court in the Brecht case applies in the case at bar, therefore, it is
“ORDERED that the motion to suppress the evidence obtained by the search be and the same is hereby granted.” (Emphasis added).
There is but one issue presented by the state in this appeal: Did the district court err in suppressing the evidence seized by Robert Hillis, relying on this Court’s decision in State v. Brecht, 157 Mont. 264, 270, 485 P.2d 47 (1971) 1
This case is unique in that the state and amicus curiae attack only the Brecht decision. They ask that it be reversed and confine their arguments in that regard only to the application of the Fourth Amendment to the Hnited States Constitution, ignoring any other considerations. This would indicate that Brecht, as written, is not clear and an explanation is warranted even though the instant case can be distinguished.
In Brecht the defendant was charged with the murder of his estranged wife. Her death resulted from the discharge of a shotgun under disputed circumstances in the tavern where she was employed on the evening of May 17, 1967. Deceased and her sister Sandra resided with their mother at the mother’s home for a period of time before the shooting. The sister Sandra received a call at the mother’s home from the defendant on the evening of April 29, 1967, some two weeks prior to the shooting incident; he asked to speak with his wife and Sandra called her to the telephone. Without the consent of either party, Sandra proceeded to listen to the conversation on an extension telephone in another room. At trial Sandra was permitted to relate the conversation which she alleged contained this threat by defendant “I got my shotgun out off hock, I am coming down and I will use it if I have to”.
In Brecht the state agreed that had this intrusion and the conversation overheard been obtained by an agent of the state it would have been excluded by the court because of the ruling in Katz v. United States, 389 U.S. 347, 88 S.Ct. 507, 19 L.Ed.2d 576 (1967). Katz is an electronic surveillance case and the landmark case that overturned the longstanding doctrine that search and seizure under the Fourth Amendment was unreasonable only if an intrusion or trespass accompanied the seizure of “tangible goods” i.e., indicating a property right or enclave theory. Katz held these rights to be personal and protective of people and not simply areas with no physical intrusion required. Brecht excluded the conversation of Sandra Brumfield based on violation of defendant’s right of privacy established in Welsh v. Roehm, 125 Mont. 517, 241 P.2d 816, a court declared constitutional right; the Fourth and Fifth Amendments of the United States Constitution; Art. Ill, Sec. 7 of the 1899 Montana Constitution; and stated in pertinent part:
“* * * The violation of the constitutional right to privacy and against compulsory self-incrimination is as detrimental to the person to whom the protection is guaranteed in the one case as in the other. To distinguish between classes of violators is tantamount to destruction of the right itself. * '* *
“This Court in the present case would be remiss were it not to recognize that evidence obtained by the unlawful or unrea sonable invasion of several of tbe constitutionally protected rights guaranteed to its citizens by both the federal and Montana constitutions properly comes within the contemplation of this Court’s exclusionary rule. To do otherwise would lend Court approval to a fictional distinction between classes of citizens: those who are bound to respect the Constitution and those who are not. Were the exclusionary rule to recognize such distinctions it would by indirection circumvent the rule established by this Court to enforce these rights and would in fact render the rule and the constitutional guarantees it protects meaningless.”
The state and amicus curiae proceeded in argument on the premise that Brecht rested solely on the Fourth Amendment cases which establish this general rule, contained in 68 Am.Jur.2d, Searches and Seizures § 13, p. 670:
“It is no part of the policy underlying the Fourth Amendment to discourage citizens from aiding to the utmost of their ability in the apprehension of criminals. Accordingly, it has long been recognized that the Fourth Amendment’s protections against unreasonable search and seizure do not extend to a search or seizure made by a private individual, conducted without police.participation. In support of this rule, it has been said that the origin and history of the Fourth Amendment clearly show that it was intended only as a restraint upon the activities of sovereign authority, and that a contrary ruling would have no deterrent effect since private persons would be unaware of the rule * # (Emphasis added).
The general rule and cited cases are based on the holding of the United States Supreme Court in Burdeau v. McDowell, 256 U.S. 465, 41 S.Ct. 574, 65 L.Ed. 1048 (1921).
The state and amicus argue that Brecht was improvident and against the weight of authority. A careful reading of Brecht reveals that this is an oversimplification of the problem. As heretofore stated Brecht rested only in part on the Fourth Amendment and it would appear that any attempt to reverse Brecht would necessarily require a treatment of additional constitutional considerations upon which the Brecht decision rests and, further, a consideration of the legal issues raised by defendant here. Defendant contends the search violated these constitutional and statutory provisions:
Article II, Sec. 10, 1972 Montana Constitution:
“Right of Privacy. The right of individual privacy is essential to the well-being of a free society and shall not be infringed without the showing of a compelling state intérest.”
Section 95-701, R.C.M.1947:
“Searches and seizures — when authorized. A search of a person, object or place may be made and instruments, articles or things may be seized in accordance with the provisions of this chapter when the search is made:
“(a) As an incident to a lawful arrest.
“(b) With the consent of the accused or of any other person who is lawfully in possession of the object or place to be searched, or who is believed upon- reasonable cause to be in such lawful possession by the person making the search.
“(c) By the authority of a valid search warrant.
“(d) Under the authority and within the scope of a right of lawful inspection granted by law.”
Defendant’s contentions raise some interesting problems when considered with the fact that Montana has a statute, section 95-611, R.C.M.1947, which provides:
“95-611. Arrest ~by a private person. A private person may arrest another when:
“(1) he believes, on reasonable grounds, that an offense is being committed or attempted in his presence;
“(2) a felony has in fact been committed and he believes, on reasonable grounds, that the person arrested has committed
Also., the federal constitution contains no specific section establishing a separate and independent right of privacy as does the 1972 Montana Constitution. The United States Constitution recognizes the right as part of the First, Third, Fourth and Fifth Amendments. Katz v. United States, supra.
The state in oral argument cited a Montana Law Review note at 34 Montana Law Review 187, which it advised the Court also represented the state’s view as an in depth discussion of Brecht and the exclusionary rule.
The totality of the state, amicus and law review article arguments reduce themselves to:
(1) The exclusionary rule is not a completely satisfactory rule and represents an attempt to solve a problem that defies simple solution. The conflicting policy considerations are the interest of society in criminal prosecutions and the prohibiting of law enforcement personnel from violating Fourth Amendment proscriptions, a proscription extended to right of privacy as well. The intent of the rule was to remove the incentive for officers to violate the rule and deter official misconduct and promote “judicial integrity”. Logic would dictate that to fulfill the function of the rule the persons violating the rule must have an interest in obtaining the conviction and must at least be aware of the rule.
(2) They adopt the strict construction doctrine of the general rule that the authors of the Fourth Amendment, fearing an oppressive sovereign, meant only to give limited protection from government action. The United States Supreme Court in Burdeau v. McDowell, 256 U.S. 465, 475, 41 S.Ct. 574, 65 L.Ed. 1048, said:
“The Fourth Amendment gives protection against unlawful searches and seizures, and as shown in the previous cases, its protection applies to governmental action. Its origin and history clearly show that it was intended as a restraint upon the activities of sovereign authority, and was not intended to be a limitation upon other than governmental agencies; as against such authority it was the purpose of the Fourth Amendment to secure the citizen in the right of unmolested occupation of his dwelling and the possession of his property, subject to the right of seizure by process duly issued.” (Emphasis added).
A fair analysis of the arguments would seem to imply that the position of the parties was much the same as that expressed by Chief Justice Taft, writing for the majority in a five-four decision, Olmstead v. United States, 277 U.S. 438, 48 S.Ct. 564, 72 L.Ed. 944, 954 (1928), a telephone intrusion case by federal officers, where he held the Fourth Amendment not subject to application beyond the intent of the framers of the amendment and its words could not be stretched to be given a meaning to include “intangible” and trespass was a requirement to invade the protected property.
All parties in the instant case have avoided any analysis of Katz in which, Justice Black in his dissenting opinion proclaims that the majority in Katz have “rewritten the Fourth Amendment”. Justice Black in his dissent also relied heavily on Olmstead.
It would appear then that the arguments based on strict interpretation, origin, history, and intent of the authors as they concern the Fourth Amendment are highly diluted since Katz in 1967. The majority in Katz recognize that the former decisions of the Court foreclosed Fourth Amendment inquiry when penetration or trespass was absent, citing Olmstead and Goldman v. United States, 316 U.S. 129, 62 S.Ct. 993, 86 L.Ed. 1322, for the Amendment was thought to limit only searches and seizures of tangible property and property rights controlled. The majority, in Katz, cited Silverman v. United States, 365 U.S. 505, 81 S.Ct. 679, 5 L.Ed.2d 734, as the departure from that narrow view and included intangibles as well. It went on to hold that the Fourth' Amendment protects people and not simply “areas” and therefore the reach of the Fourth Amendment cannot turn upon the presence or absence of physical intrusion into any given enclosure, and the trespass doctrine in Olmstead and Goldman can no longer be controlling.
This then demonstrates a radical departure from the accepted meaning of the words of the Fourth Amendment which, con-, trolled for over a period of 40 or more years, since Olmstead. It further demonstrates that these traditional concepts are mot static. This is not a new concept by any means. In Olmstead, many years ago, among the four dissenting justices, Brandéis observed in reference to interpretation on the same subject as Katz:
“Clauses guaranteeing to the individual protection against •specific abuses of power, must have a similar capacity of adaptation to a changing world. It was with reference to such a ■clause that this court said in Weems v. United States, 217 U.S. 349, 373, 30 S.Ct. 544, 551, 54 L.Ed. 793, 801: ‘Legislation, both statutory and constitutional, is enacted, it is true, from -an experience of evils, but its general language should not, therefore, be necessarily confined to the form that evil had theretofore taken. Time works changes, brings into existence new ■conditions and purposes. Therefore a principle to be vital must be capable of wider application than the mischief which gave it birth. This is peculiarly true of. Constitutions. They are not ephemeral enactments, designed to meet passing occasions. They are, to use the words of Chief Justice Marshall, “designed to approach immortality as nearly as human institutions can approach it.” The future is their care and provision for events of good and bad tendencies of which no prophecy can be made. In the application of a Constitution, therefore, our contemplation cannot be only of what has been but of what may be. Under any other rule a Constitution would indeed be as easy of application as it would be deficient in efficacy and power. Its general principles would have little value and be converted by precedent into impotent and lifeless formulas. Bights declared in words might be lost in reality.’ ” (Emphasis added).
So far as privacy is concerned, Katz recognized the Fourth Amendment was not a general right of privacy but the right was contained in the Fourth and several other amendments, the First, Third and the Fifth, and as stated in Katz at p. 350 of 389 U.S., at p. 511 of 88 S.Ct., at p. 581 of 19 L.Ed.2d in reference to the right of privacy: “# # * his right to be let alone by other people — is, like the protection of his property and of his very life, left largely to the law of the individual States.”
In Boyd v. United States, 116 U.S. 616, 6 S.Ct. 524, 29 L.Ed. 746 (1886), the Court noted that the Fourth and Fifth Amendments were very closely tied and the unreasonable search and seizure of the Fourth Amendment almost always compels a man to give evidence against himself which is condemned in the Fifth Amendment- In this regard the Fourth and Fifth Amendments almost run into each other. This adds to the problem the fact that a violation of the Fifth Amendment rights, whether private or government, is condemned in all courts, military and civil. Haynes v. Washington, 373 U.S. 503, 83 S.Ct. 1336, 10 L.Ed.2d 513 (1963); Rogers v. Richmond, 365 U.S. 534, 81 S.Ct. 735, 5 L.Ed.2d 760 (1961); Payne v. Arkansas, 356 U.S. 560, 78 S.Ct. 844, 2 L.Ed.2d 975 (1958).
Concerning the exclusionary rule itself, it would be well to consider first that the “exclusionary rule” is a court adopted rule resting on the “rule making” and “supervisory power” of the Supreme Court over the other courts and has no roots in the constitution or the statutes of the state or federal government. (Dissent in Katz by Justice Black and citing Wolf v. Colorado, 338 U.S. 25, 69 S.Ct. 1359, 93 L.Ed. 1782; Mapp v. Ohio, 367 U.S. 643, 81 S.Ct. 1684, 6 L.Ed.2d 1081, 84 A.L.R.2d 933; Elkins v. United States, 364 U.S. 206, 80 S.Ct. 1437, 4 L.Ed.2d 1669, 1677, 1680, 1681 (1960).
The fact that the rule is characterized as not satisfactory and the state in argument recommended that a tort remedy for the aggrieved was adequate, simply ignores that all of the cases which declare the rule as a deterrent because the wrong cannot be corrected or compensated, but merely avoided in the future, must have recognized that there could be no price placed on a constitutional right.
The court in People v. Cahan, 44 Cal.2d 434, 282 P.2d 905 (1955), observed that the court was compelled to apply the rule because all remedies, such as criminal and tort, had completely failed to secure these rights under the Constitution. Cahan was cited and approved in Elkins with a long discussion on the problem, citing statements from the chief law enforcement officers of California and the FBI in support of the rule.
In Elkins, the court said: •
“The exclusionary rule has for decades been the subject of ardent controversy. The arguments of its antagonists and of its proponents have been so many times marshalled as to require no lengthy elaboration here.”
It is, however, noteworthy to comment on its application and the “silver platter doctrine” that resulted. The first application of the rule, in 1914, applied only to the federal court system and only excluded tainted evidence obtained by federal officers and as a result the so-called “silver platter doctrine” was developed, i.e., state officers could violate a person’s constitutional right and hand the evidence to the federal officers [on a silver platter] and such evidence could be used in the federal court because no federal officer was physically involved in the violation.
This practice was recognized but ignored for over 40 years until Elkins. In that case, the “silver platter doctrine” was finally discredited. Elkins went on to observe that it is unlikely factual data could be assembled to demonstrate that the exclusionary rule was unworkable and in some depth demonstrated the opposite conclusion. Of more interest, Elkins cites with approval as a ground for rejecting the so-called “silver platter doctrine”:
“But there is another consideration — the imperative of judicial. It was of this that Mr. Justice Holmes and Mr. Justice Brandéis so eloquently spoke in Olmstead v. United States, 277 U.S. 438, at pages 469, 471, 48 S.Ct. at pages 569, 570, 72 L.Ed. 944, 952, 953, [66 A.L.R.376], more than 30 years ago. ‘For those who agree with me/ said Mr. Justice Holmes, ‘no distinction can be taken between the Government as prosecutor and the Government as judge.’ 277 U.S. at page 470, 48 S.Ct. at page 575. (Dissenting opinion.) ‘In a government of laws/ said Mr. Justice Brandéis, ‘existence of the government will be imperilled if it fails to observe the law scrupulously. Our Government is the potent, the omnipresent teacher. For good or for ill, it teaches the whole people by its example. Crime is contagious. If the government becomes a law-breaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy. To declare that in the administration of the criminal law the end justifies the means ■ — to declare that the government may commit crimes in order to secure the conviction of a private criminal — would bring terrible retribution. Against that pernicious doctrine this court should resolutely set its face.’ 277 U.S. at page 485, 48 S.Ct. at page 575. (Dissenting opinion.)”
Elkins also cites McNabb v. United States, 318 U.S. 332, 345, 63 S.Ct. 608, 87 L.Ed. 819, in support of this doctrine and then concludes:
“Even less should the federal courts be accomplices in the willful disobedience of a Constitution they are sworn to uphold.”
Of course, this would apply to all of the court systems.
In Mapp, shortly after Elkins, the last door was closed and the exclusionary rule was applied to the state courts. The rule may have many of the deficiencies that are contended by the state, but a close examination of its history would seem to present a strong case that once the rule was formulated the unexplained, uneven and ignoble application by the judiciary lent no strength to the rule and it is certainly no compliment to judicial integrity to admit to the inordinate length of time that the “silver platter doctrine” was ignored.
Incidental to this matter the state commented with emphasis in its brief, that State v. Gardner, 77 Mont. 8, 249 P. 574 (1926), was not considered in Brecht but was by implication overruled by Brecht. The Supreme Court of Montana had adopted its own exclusionary rule at that time, long prior to Mapp, and did quote from Burdeau, the foundation case, for the general rule quoted in Gardner. However, Gardner involved the “silver platter doctrine” in the use of illegally obtained evidence by the federal authorities in a state court and used Burdeau to justify this action in an entirely different context than that under consideration in Brecht. It would seem fair to assume that Elkins overruled, not Brecht.
The argument that the exclusionary rule is wedded to the sovereign because the organized officialdom are the only ones that can be deterred because the injury to the victim cannot be restored or reparation comes too late, and that all others would have no prosecution motive and could not be familiar with the rule is an unwarranted generalization that completely disregards the changes that have taken place in our political and social structure and the legal impact of the cases on the subject since the rule was announced in Burdeau in 1921; with particular reference to Katz and Elkins. It also follows that no consideration is being given to the cases cited, including Brecht, where there is a merger of the Fourth and Fifth Amendments in a violation of a personal right, particularly when authority cited by the state agrees that Fifth Amendment violations are excluded when done by a private person. No thought is given to the Montana Constitution or statutes previously cited. Finally, it fails altogether to recognize the massive increase in the incidents of the invasions of the right of privacy of the private citizen or the scientific advances that have made this possible, even though the United States Congress has finally recognized the problem and has given it priority consideration.
Further, the arguments erroneously characterize the “private person” as the little old lady next door who has a desire to assist in law enforcement. When in fact a great many of the pure Fourth Amendment cases cited by the state involve-“institutional”, “quasi” or “private” police, i.e., airport guards, building security personnel, private detectives and we also have-private corporation police like railroad police and self-help-groups and investigators for political committees. Experience-simply does not cast these groups of “private” persons in the-minority. The standards agreed to by the state simply do not fit this segment of the private sector. Methods designed to-protect the multiple rights of the whole of our citizenry are-not intended to free criminals or discourage the participation: of citizens in the enforcement of our laws.
If one considers that any exclusionary process only excludes-“unreasonable” conduct it can readily be seen that all intrusions; are not unreasonable. Like it or not unreasonable or illegal intrusions knowingly accepted and used, from the private sector-by the government amount to an extension of the silver platter-doctrine condemned by Elkins, particularly when viewed in the light of judicial integrity emphasized in Elkins. It has been argued that Elkins did not disturb Burdeau, it may not have-been clear in the pure Fourth Amendment context, but a close examination does move one to believe that the silver platter concept was condemned in any context.
This Court, however, does recognize the multitude of problems that arise and have arisen over the decades in an attempted solution of this very difficult problem and a final solution may-well require that recognition be given to the wide disparity-in terms of knowledge, motive and awareness of the widely^ diverse groups, institutions and individuals sought to be controlled and collusion avoided by the exclusionary rule.
If personal rights are to be protected and governmental integrity preserved the answer does not lie in ignoring the problem,, as did the federal system for so many years, but a possible-examination of the rigidity of the rule itself might be in order. The solution could very well be partially achieved by an examination of standards for reasonableness in these matters appli cable to government on the one hand, institutional police and private persons as we move down in this diverse process. This is much the same problem to be faced under a statutory “private” arrest, when it involves a search and seizure incident thereto.
The Court is mindful that by respondent’s brief and case analysis there have been constitutional and statutory questions raised that bear directly on this problem which we have not answered. Under the facts and circumstances of this case, we feel that we should not and therefore have not done so.
As stated at the beginning of this opinion, the instant case can be distinguished from Brecht. It might be well to establish that it is distinguished on legal grounds. The Court does not call into question the good faith or integrity nor offer criticism of any of the parties here involved, for whatever personal reasons controlled the decisions made that night.
The testimony clearly reveals two outstanding departures from the doctrine urged by state and amicus.
(1) The transcript quoted reveals the reporting of a crime to the proper authority, with abundant probable cause for arrest procedure. At this point a crime against the state, not McDonalds, was involved. The public interest thereafter was subordinated to that of a private interest when the store manager was permitted the luxury of self-help. No matter how laudable the motives, there is no proof that adverse publicity would have been any greater had the matter been handled by the police. There is no legal difference if the crime reported had been a deceased person by unnatural means. After the manager obtained the drug it was promptly turned over to the police. This then is not the example used in argument of an innocent assist to the government with no conviction motive, or why else the initial report and the delivering of the evidence for prosecution.
(2) The conference with officials beforehand defeats, at least impliedly, the ignorance of the rule concept. Further the state endorsed in its cited law review article, 34 Montana Law Review 187, 197, while explaining private cooperation with the police creates less of a problem than might be imagined, that:
“* * * As soon as a private individual acts in association or cooperation with the police, the courts have held that his act is deemed to be the act of the state. Miramontes v. Superior Court for County of San Mateo, 25 Cal.App.3rd 877, 102 Cal. Rptr. 182 (1972).] Not only will evidence be excluded if a private individual works at the direction or supervision of the police, but it will also be excluded when the police are guilty of no more than just ‘idly standing by’ ”.
Stapleton v. Superior Court of L.A. County, 70 Cal.2d 97, 73 Cal.Rptr. 575, 447 P.2d 967, 970 (1969); State ex rel. Sadler v. District Court, 70 Mont. 378, 225 P. 1000 (1924).
Admittedly the facts of the case presented by the state through the law review article are much stronger than ours. However Stapleton does hold:
“* # # police need not have requested or directed the search in order to be guilty of ‘standing idly by’; knowledge of the illegal search coupled with a failure to protect the [defendant’s] rights against such a search suffices.”
The legal impact drawn from all of the facts seems to come much more under Stapleton than Brecht, however, in either case the district court was not in error.
The judgment of the district court is affirmed.
MR. JUSTICE HASWELL and the HONORABLE M. JAMES SORTE, District Judge, sitting for MR. CHIEF JUSTICE JAMES T. HARRISON, concur.
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MR. JUSTICE FREEBOURN:
On July 16, 1945, Agnes Opp, plaintiff and respondent, instituted action against her sister Catherine Boggs and her brother-in-law, William H. Boggs, defendants and appellants, by filing, in the district court of Deer Lodge county, a complaint which in brief alleged: That in July 1921, plaintiff became the owner of real property located at No. 701 Cherry Street, in Anaconda, Montana, described as Lot 12, Block 116, original townsite of Anaconda; that on November 18, 1924, she deeded such property to her mother, Lenora Leahy, as plaintiff’s trustee; that on February 22, 1928, without plaintiff’s knowledge or consent Lenora Leahy deeded the property to her daughter and plaintiff’s sister, now Catherine Boggs; that Catherine Boggs became plaintiff’s trustee in holding said property and, on December 3, 1942, without plaintiff’s knowledge and consent, recorded a deed of such property to William H. Boggs, Catherine Boggs’ husband ; and that ever since Mr. and Mrs. Boggs have denied plaintiff ’s ownership of such property.
In the prayer of the complaint plaintiff asked: That William H. Boggs be found to hold such property as trustee for plaintiff ; that such trusteeship be terminated; that plaintiff be found to be the real owner of such property; and that title be quieted in plaintiff.
By answer defendants denied the material allegations of the complaint and set up a number of defenses, among them: That plaintiff’s action was barred under Montana statutes and by laches; that the alleged trust was void because not in writing; and that plaintiff was estopped from asserting her action by reason of hostile possession of the property and by money expended on said property by defendants. The affirmatve allegations of the answer were traversed by plaintiff’s reply.
Upon trial before the lower court, sitting without a jury, in July 1946, the issues were found in favor of defendants. Appeal was taken which was decided by this court on March 4, 1948, and is reported as Opp v. Boggs et ux., 121 Mont. 131, 193 Pac. (2d) 379. The cause was remanded to the lower court for further proceedings in conformity with this court’s opinion.
Upon return of the cause to the lower court, without submission of further evidence, the matter was submitted to the trial judge upon the transcript made on the first appeal.
From a judgment in favor of plaintiff rendered May 19, 1949, defendants appeal.
The material parts of the judgment before us on this appeal, which incorporated the findings of fact and conclusions of law are: That the deed of November 18, 1924, from plaintiff to her mother, Lenora Leahy, made Lenora Leahy a trustee holding the property for plaintiff’s benefit; that the deed of February 23, 1928, from Lenora Leahy to her daughter, Catherine Boggs, conveyed title to Catherine Boggs as trustee for plaintiff; and that the deed of August 21, 1941, from Catherine Boggs to William H. Boggs, her husband, was impressed with such trust; that William H. Boggs held such property as trustee for plaintiff and that title to the'property is quieted in plaintiff.
We are satisfied, after a careful reading of the transcript, briefs of counsel and our opinion in Opp v. Boggs, supra, that contradictory statements in such opinion led the lower court into error.
Upon return of the cause to the lower court, the trial court assumed, and with good cause, that we found a trust existed between plaintiff and her mother Lenora Leahy, by virtue of the deed of November 18, 1924, as a matter of law and fact.
We intended the court to understand that, as a matter of law there was sufficient evidence on plaintiff’s behalf, if believed, to establish such trust, but since defendant’s evidence, if believed, showed no trust, it was up to the trial court to decide which witnesses were entitled to credence and if the trust was in fact established by the evidence.
The plaintiff and her mother testified a trust was intended. Catherine Boggs denied this. Many facts and circumstances tend to support defendants’ contentions, which are inconsistent with ownership in plaintiff.
The deed from plaintiff to her mother makes no mention of a trust or that plaintiff retained any interest in the property. It appears to be a clear grant for a valuable consideration. There is no other writing showing a trust was intended. The trust rests solely upon the parol testimony of plaintiff and her mother.
Rehearing denied July 6, 1950.
Since 1937 defendants have occupied the premises as a home. During this time their actions were those of owners. They, and Catherine since 1924, paid the taxes and kept up fire insurance on the property. They put in cement sidewalks, paid for street-improvements and remodeled the home. They expended between three and four thousand dollars on it. They paid no rent to plaintiff and none was demanded by her. To the contrary plaintiff paid rent for use of the garage, a part of the premises.
During all of these years plaintiff in no way interfered with defendants’ possession and exercised no rights of ownership over the property until May 1945, when in a dispute with Catherine, she said: ‘ ‘ This will be the sorriest day of your life, Catherine.”
In this case the credibility of the witnesses is of prime importance since the trust issues rest on parol evidence.
The trial judge, who saw and heard the- witnesses, can better determine where the truth lies than this court with but the cold record before it.
If the trial court finds no trust existed by virtue of the deed from plaintiff to Lenora Leahy, judgment should be entered for defendants and ownership quieted in William H. Boggs.
If. such trust is found to exist, the lower court will then find if such trust impresses the subsequent deeds and what, if any, equities exist between the parties, entering judgment accordingly.
For the reasons stated the cause is remanded for further proceedings in accordance with the directions herein.
MR. CHIEF JUSTICE ADAIR and ASSOCIATE JUSTICES ANGSTMAN, METCALF and BOTTOMLY concur.
|
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DECISION
The application of the above-named defendant for a review of the sentence of five years for Second Degree Burglary, with 20 days jail- time credit imposed on March 10, 1969, was fully heard and after a careful consideration of the entire matter it is decided that:
The sentence be and remain as originally imposed.
The presumption being that the sentencing judge was correct in his determination, we are unable to say that this sentence was not proper, reasonable, and sufficiently lenient, the crime, the individual, and the sentencing goals kept in mind, particularly when it is considered that at the time the crime was committed, defendant Was- on appeal under a 4-year sentence for a felony committed in Yellowstone County in 1967, that the 5-year sentence could have been made consecutive to the 4-year sentence and, if used, the prior conviction might have resulted in a sentence of 10 years.
We thank Professor David J. Patterson, Acting Director of the Montana Defender project, for his assistance to the defendant and to the Court.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman.-, Paul G. Hatfield, Emmet Glore.
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal by plaintiff from a judgment entered in favor of the defendant upon.a verdict of the jury in an action for damages for personal injuries suffered by the plaintiff in an automobile accident.
The accident occurred in the early morning hours of December 7, 1957, at a curve on Farragut Street within the city limits of Butte, Montana. All of the testimony showed that the street was slippery because of snow, ice and some wind. The defendant was the only person in his 4 wheel drive “jeep” vehicle. The plaintiff was the passenger in a vehicle which was driven by George Erickson which will be referred to as the Erickson vehicle. Donna Erickson, wife of the driver, was also a passenger in the Erickson vehicle. The defendant’s vehicle was traveling south and the Erickson vehicle was traveling north. The defendant’s vehicle admittedly hit a chuck hole in the street which threw it out of control and it skidded at least 150 feet before it came into collision with the Erickson vehicle. The impact threw the Erickson vehicle up onto the curbing. The point of impact of the vehicles was in the lane of travel of the Erickson vehicle.
In his testimony, the defendant made several admissions. He testified that he had driven the route, which he was driving at the time of the accident, every day for four years and that the road was very familiar to him. He admitted that the roads were very slippery and dangerous at the time of the accident and that he was aware of this fact. He also admitted that he knew of the approximate location of the chuck hole and was watching for it. He testified as follows: “I knew it [referring to the chuck hole] could throw my cm if I hit it and that’s why I was watching for it. ’ ’ He also testified that he was traveling approximately 15 miles per hour when he hit the chuck hole while coming around a curve and that he saw the lights of the Erickson vehicle before he came into the curve. He also said that when his vehicle was out of control the Erickson vehicle veered off to the right side of the road in an attempt to avoid the collision. Defendant testified that he intended to straddle the chuck hole, but that he had misjudged and the right wheels of his vehicle struck the chuck hole throwing' his car out of control and when he attempted to straighten his vehicle it slid straight ahead into the Erickson vehicle.
George Erickson, the driver of the Erickson vehicle, and his wife, Donna Erickson, both testified that the defendant was driving his vehicle about 20 miles per hour, and that the Erickson vehicle was traveling from five to ten miles per hour. They also testified that the streets were icy and dangerous and that they had pulled to the right side of the street in an attempt to avoid the collision when they saw that the vehicle of the defendant was out of control.
The following instruction was given by the trial court over objection of the plaintiff: “In law we recognize what is termed an unavoidable or inevitable accident. These terms do not mean literally that it was not possible for such an accident to be avoided. They simply denote an accident that occurred without having been proximately caused by negligence. Even if such an accident could have been avoided by use of greater foresight, caution or skill than was required in the circumstances in the exercise of ordinary care, still no one may be held liable for injuries resulting from it. If, therefore, you find that the accident in which Plaintiff was injured was unavoidable, as in this Instruction defined, your Verdict must be for the Defendant.”
The issue is raised as to whether the giving of the above-quoted instruction relating to “unavoidable accident” was reversible error.
This issue has been the subject of much controversy both in Montana and other jurisdictions. In the recent ease of Butigan v. Yellow Cab Co., 1958, 49 Cal.2d 652, 320 P.2d 500, 65 A.D.R..2d 1, the California Supreme Court generally disapproved of all instructions on “unavoidable accident” thereby abandoning a long line of contrary California decisions. In the course of the opinion, in the Butigan ease, supra, the court at 320 P.2d 500, 504, stated:
“We are of the view that the rule applied in Parker v. Womack, 37 Cal.2d 116, 230 P.2d 823 [allowing an instruction as to “unavoidable accident”], should be reconsidered. In reality, the so-called defense of unavoidable accident has no legitimate place in our pleading. It appears to be an obsolete remnant from a time when damages for injuries to person or property directly caused by a voluntary act of the defendant could be recovered in an action of trespass and when strict liability would be imposed unless the defendant proved that the injury was caused through ‘inevitable accident.’ * * *
“In the modern negligence action the plaintiff must prove that the injury complained of was proximately caused by the defendant’s negligence, and the defendant under a general denial may show any circumstance which militates against his negligence or its causal effect. The so-called defense of inevitable accident is nothing more than a denial by the defendant of negligence, or a contention that his negligence, if any, was not the proximate cause of the injury. [Citing California authorities.] The statement in the quoted instruction on ‘unavoidable or inevitable accident’ that these terms ‘simply denote an accident that occurred without having been proximately caused by negligence’ informs the jury that the question of unavoidability or inevitability of an accident arises only where the plaintiff fails to sustain his burden of proving that the defendant’s negligence caused the accident. Since the ordinary instructions on negligence and proximate cause sufficiently show that the plaintiff must sustain his burden of proof on these issues in order to recover, the instruction on unavoidable accident serves no useful purpose. * * *
“The instruction is not only unnecessary, but it is also confusing. When the jurors are told that ‘in law we recognize what is termed an unavoidable or inevitable accident’ they may get the impression that unavoidability is an issue to be decided and that, if proved, it constitutes a separate ground of non-liability of the defendant. Thus they may be misled as to the proper manner of determining liability, that is, solely on the basis of negligence and proximate causation. The rules concerning negligence and proximate causation which must be explained to the jury are in themselves complicated and difficult to understand. The further complication resulting from the unnecessary concept of unavoidability or inevitability and its problematic relation to negligence and proximate cause can lead only to misunderstanding. ’ ’
In the recent case of Lucero v. Torres, 1960, 67 N.M. 10, 350 P.2d 1028, the New Mexico Supreme Court rejected the doctrine of the Butigan ease, supra. In the course of the opinion the court stated at 350 P.2d 1032:
“* * * Nevertheless, since the Butigan case, in Martz v. Ruiz, 1958, 158 Cal. App.2d 590, 322 P.2d 981, and in Brenner v. Beardsley, 1958, 159 Cal.App.2d 304, 323 P.2d 841, the California court used language that intimates that the giving of an unavoidable accident instruction might not be error where there was evidence that the accident resulted from a cause other than negligence. Also, in Rayner v. Ramirez, 1958, 159 Cal.App.2d 372, 324 P.2d 83, and in Emerton v. Acres, 1958, 160 Cal.App.2d 742, 325 P.2d 685, it was intimated that a proper case for the giving of an unavoidable accident instruction might exist where there is evidence which would support the finding of an unavoidable accident. We refuse to follow the rationale pronounced in Butigan v. Yellow Cab Co., supra.”
In another portion of the opinion, the New Mexico Court stated at page 1032 of 350 P.2d:
“We do not mean to say that every motor vehicle accident case warrants the giving of an unavoidable accident instruction. On the other hand, the very nature of some of the motor vehicle cases, such as this, suggests that genuine questions of mere accident or of unavoidable accident, giving foundation for the instruction, may be present. A prominent feature may be one of surprise, sudden appearance and reasonably unanticipated presence of a pedestrian, combined with circumstances which present a fair issue as to whether the failure of a driver of a motor vehicle to anticipate or sooner to guard against the danger or to avoid it, is consistent with a conclusion of the exercise of his due care. In such cases, the trial courts are inclined to grant the instruction on unavoidable accident and their action in so doing is generally approved by the appellate courts. [Citing authorities from several states.] ’ ’
Montana has decided three cases concerning the problem of “unavoidable accident” instructions. In Tanner v. Smith 97 Mont. 229, 33 P.2d 547, and Jewett v. Gleason, 104 Mont. 63, 65 P.2d 3, the Montana Supreme Court held that the failure to instruct as to “unavoidable accident” was not reversible error on appeal by the defendants since the evidence in the cases did not warrant the instruction. In Bogovich v. Scandrett, 117 Mont. 341, 158 P.2d 637, the Montana Supreme Court held that it was error for the trial court to give an instruction concerning “unavoidable accident” when it was not warranted by the evidence in the case. However, it should be noted that in all three of these cases the court intimated that in a proper case an instruction as to “unavoidable accident” would not be error.
In the Bogovich case, supra, the court stated at 117 Mont. 347, 158 P.2d 639:
* * In Brewer v. Berner, 15 Wash. 2d 644, 131 P.2d 940, 942, the following definition [of unavoidable accident] was quoted with approval: ‘So employed [in a more restricted sense than inevitable, as an act of God], “unavoidable accident” has been defined as meaning an accident which cannot be avoided by that degree of prudence, foresight, care, and caution which the law requires of every one under the circumstances of the particular case, which is not occasioned in any degree, either remotely or directly, by the want of such care and skill as the law holds every man bound to exercise, or which occurs without fault attributable to anyone. And, in this sense, it has been held to be equivalent to, or synonymous with, “mere accident” or “pure accident.” ’ * ,3: *
“ ‘We hold to the view and are of the opinion that an instruction on unavoidable accident is only authorized when the evidence shows or justifies an inference that an unavoidable accident has occurred as that term has been defined. In other words, facts must be present in the case on the issues of unavoidable accident, and unless they are so present it is reversible error to give an instruction on that question.’ ” Emphasis supplied.
We decline to follow the holding of Butigan v. Yellow Cab Co., supra, and conclude that the holding of Lucero v. Torres, supra, is better-reasoned. It is our opinion that an instruction as to “unavoidable accident” could help the jury to understand the legal concepts involved in an appropriate case and would not confuse them or hinder them in reaching a just conclusion. However, an instruction as to “unavoidable accident” should be used with care and only allowed when the facts warrant it. It might be appropriate where there was “surprise, sudden appearance and reasonably unanticipated presence of a pedestrian” as was stated in the Lucero case, supra, or it might be appropriate where facts are present in the case concerning “unavoidable accident” as this court stated in the Bogovich case, supra.
In the instant case, it appears from all of the testimony that an instruction concerning “unavoidable accident” was not appropriate. There was no testimony of negligence on the part of the driver of the Erickson vehicle, in which the plaintiff was a passenger. However, there was ample testimony from which negligence could be inferred on the part of the defendant. The defendant himself testified that he was familiar with the road and knew of the approximate location of the chuck hole and that it could “throw my car if I hit it”. He knew the streets were in a slippery and dangerous condition. He also testified that he saw the lights of the Erickson vehicle before going into the curve. However the defendant, from the testimony, apparently did not slow his vehicle or let the Erickson vehicle pass before crossing the chuck hole. Under these circumstances we conclude that there were no facts present concerning “unavoidable accident” to justify the instruction and the giving of such an instruction by the trial court was reversible error as to the plaintiff.
Because of our holding that the cause be remanded for a new trial for the above-stated reason, it is not necessary to pass upon the other specifications of error.
For the reason noted the judgment is reversed and cause remanded for a new trial.
MR. CHIEF JUSTICE HARRISON, MR. JUSTICE ADAIR, and THE HONORABLE CHARLES B. SANDE, District Judge, sitting in place of MR. JUSTICE ANGSTMAN concur.
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MR. JUSTICE ADAIR
on rehearing delivered the opinion of the court.
Appeal from a judgment of dismissal. On July 17, 1943, Helen June Tarrant, a 13 year old girl, was caught and crushed by a moving passenger elevator accommodating an office building in Helena, Montana. From the injuries so received the child died. Her body was found between the fifth and sixth floors wedged between the outside of the elevator and a floor of the building. Plaintiff was appointed as administratrix of the decedent’s estate and, as such administratrix brought this action to recover damages from the defendant Helena Building & Realty Company, a corporation, as owner and operator of the said office building on the alleged ground that its negligence was the proximate cause of the death.
In its answer the defendant company denies all the allegations charging it with negligence; admits that at the time of the accident it then owned and operated the office building and alleges that at such time the minor was then employed by the defendant company to operate its passenger elevator for which services she was paid at the rate of $35 per month. The answer also contains two separately pleaded affirmative defenses. The first affirmative defense alleges that prior to the accident the defendant had elected to become bound by Plan No. 2 of the Workmen’s Compensation Act, Rev. Codes 1935, sec. 2978 et seq.; that the defendant company had performed all the conditions prescribed by law to render such election effective; that the minor did not at any time “elect not to be bound by the compensation provisions of the "Workmen’s Compensation Act” and that in consequence thereof, at the time of her injury and death, she was bound by the provisions of the Workmen’s Compensation Act and thereby her legal representative was deprived of the right to maintain this action at law for damages. The second affirmative defense was a plea of contributory negligence on the part of the deceased.
The plaintiff administratrix, by demurrer, separately challenged the answer and each of the affirmative defenses on the grounds that each fails to state facts sufficient to constitute a defense. Plaintiff’s demurrer was overruled and she declined to plead further whereupon the defendant company’s motion for judgment on the pleadings was granted, the parties stipulating that the plea of contributory negligence was not to be considered on the motion and such plea was not urged on this appeal. Judgment was entered dismissing the complaint and this appeal is from such judgment.
On this appeal the administratrix assigns as error: (1) The overruling of plaintiff’s demurrer to the defendant company’s first affirmative defense; (2) the sustaining of the defendant company’s motion for judgment on the pleadings; and (3) the making and entering of the judgment of dismissal.
The Child Labor Law and the Workmen’s Compensation Act are here involved.
In 1907 the legislature of this state enacted Chapter 99 of the Session Laws of 1907, commonly called the Child Labor Law. Section 1 of the original Act, now section 3095, Revised Codes of 1935, expressly forbids the employment of “any child under the age of sixteen years, to render or perform any service or labor” in, on or about any passenger or freight elevator. For violating the provisions of the statute, penalties are imposed. (Secs. 3095, 3096 and 3098, Rev. Codes.) The penalty may be a fine or imprisonment or it may be both fine and imprisonment. (Sec. 3100, Rev. Codes.)
In Daly v. Swift & Co., 90 Mont. 52, 300 Pac. 265, 268, this court held that a violation of the Child Labor Law “forms the basis of an action for damages for injuries resulting from such labor as the employment entails, and the general rule that the violation of a statute enacted for the protection of the public is negligence per se (citing case) applies.” (Citing cases.)
The Workmen’s Compensation Act was first enacted as Chapter 96 of the Session Laws of 1915, and it “is intended to apply to all inherently hazardous works and occupations within this state.” (Sec. 2847, Rev. Codes.) “Freight or passenger elevators” are among the hazardous works expressly listed in the Act (see. 2848), and any employer having workmen engaged therein “shall be considered as an employer engaged in hazardous works and occupations as to all his employees.” (Sec. 2847, Rev. Codes.)
In some states the Compensation Act is comptilsory but the Montana Act has been held to be elective and contractual in character. In Shea v. North Butte Mining Co., 55 Mont. 522, 179 Pac. 499, 501, this court upheld the constitutionality of the Act saying: “Our own statute is elective. * * * The employe may revoke his election 'at any time. The employer may make his election at any time.” The court also said that our compensation law “becomes binding upon the employer and employe at their election, but not otherwise” and that the employee “cannot complain because it was competent for him to waive the advantage of any provision of law which was intended solely for his benefit, so long as the waiver did not violate public policy. ’ ’
Apparently the Workmen’s Compensation Act, Chapter 96, Laws of 1915, as originally enacted, accepted the prohibitions of the Child Labor Law (see. 3095) at their face value for the original Act makes no provision for covering therein minors who are placed at work in prohibited occupations and there injured or killed.
In 1925 the legislature by the enactment of section 3 of Chapter 121, Laws of 1925, now section 2863, Revised Codes of 1935, amended its definition of the term “employee” to read in part: “ ‘Employee’ and ‘workman’ are used synonymously and mean every person in this state, including a contractor other than an ‘independent contractor’ who is in the service of an employer as defined by the preceding section, under any appointment or contract of hire, expressed or implied, oral or written including aliens and also including minors, whether lawfully or unlawfully employed, * * * ."
The above amendment makes a most drastic change in the Workmen’s Compensation Act. By simply changing the definition of the term “employee” to include “minors, whether lawfully or unlawfully employed” the legislature makes of the “unlawfully employed” minor a full-fledged “employee” and it renders, to employers insured under the Act, immunity from common-law or statutory suits for damages, even where injury or death results to such minor when rendering or performing service or labor in violation of express statute. Since the amendment makes an “employee” of an “unlawfully employed” minor, it dispenses with the necessity of a valid contract of employment. It makes wholly immaterial the age or competency of the minor and the capacity of the minor to contract, as well as the lawfulness of the object or of the employment.
Under the Act the insured employer is rendered immune from ‘ ‘ any other liability whatsoever for the death of or personal injury to any employee” except as is provided in the Act and “all causes of action, actions at law, suits in equity, and proceedings whatever, and all statutory and common-law rights and remedies for and on account of such death of, or personal injury to, any such employee are * * * abolished.” (See. 2838, Rev. Codes.)
The “unlawfully employed” minor, like all other employees, is bound by the plan of compensation adopted by his employer unless and until such unlawfully employed minor shall have made and served upon the employer and filed with the board the written notice in the form prescribed by the board to the effect that he elects not to be bound by the plan adopted by the employer, for the Act provides: “Every employee * * * shall become subject to and be bound by the provisions of that plan of compensation which shall have been adopted by his employer, unless such employee shall elect not to be bound by any of the compensation provisions of this Act, and until such employee shall have made such election. Such election shall be made by written notice in the form prescribed by the board, served upon the employer, and a copy filed with the board, together with the proof of such service.” (Sec. 2842, Rev. Codes.)
The Act further provides: “Where both the employer and employee have elected to come under this Act, the provisions of this Act shall be exclusive, and such election shall be held to be a surrender by such employer and such employee, as between themselves, of their right to any other method, form or kind of compensation, or determination thereof, or to any other compensation, or kind of determination thereof, or cause of action, action at law, suit in equity, or statutory or common-law right or remedy, or proceeding whatever, for or on account of any personal injury to or death of such employee, except as such rights may be hereinafter specifically granted; and such election shall bind the employee himself, and in case of death shall bind his personal representative, and all persons having any right or claim to compensation for his injury or death, as well as the employer, and those conducting his business during liquidation, bankruptcy or insolvency.” (Sec. 2839, Rev. Codes. Emphasis ours.)
No action for wrongful death existed at common law, the action dying with the injured person. However, the legislature is empowered to and it has provided that in certain cases the cause of action shall survive the death of the injured person. (See sections 9075, 9076 and 9086, Rev. Codes.) That which the legislature is empowered to give, it is also empowered to take away. The legislature was empowered to enact the Workmen’s Compensation Act. It was also empowered to enact the 1925 amendment to the Act. By such legislation the legislature has taken from the injured workman, and in case of his death from his representatives, certain causes of action and remedies theretofore available to them. Whether that legislation is wise or not was and is for the legislature to decide, for this court cannot inquire into or control matters of legislative policy. If the legislation is capable of enforcement, it must be upheld. (State ex rel. Board of County Commissioners v. District Court, 62 Mont. 275, 279, 204 Pac. 600.)
In the instant case the defendant corporation is an employer as defined by section 2862, Revised Codes. The decedent was a minor unlawfully employed by defendant in direct violation of section 3095, Rev. Codes. The legislature by its 1925 amendment included within its definition of “employee” the unlawfully employed minor. The defendant employer was insured under that Act. The minor failed, in the manner and form prescribed by section 2842, Revised Codes, to elect not to be bound by the compensation plan theretofore adopted by her employer. This failure to affirmatively elect not to be bound by the Act constitutes an exemption to the defendant employer from liability in this statutory suit for damages. The legislature has so provided in sections 2838 and 2839 of the Revised Codes.
The judgment is therefore affirmed.
Mr. Chief Justice Johnson and Associate Justice Morris concur.
|
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MR. JUSTICE ANGSTMAN
delivered the Opinion of the Court.
This action seeks restitution of certain described premises, and for treble damages for loss of rents because of alleged acts of defendant in taking possession of the premises after the death of Hartney, the tenant. Plaintiff is the executor of the estate of Hartney.
The complaint alleges that plaintiff was entitled to the possession and occupancy of the premises at the times referred to in the complaint; that plaintiff was offered $35 per month for the rental of the property and alleges that amount as the extent of his damages per month.
The answer was a general denial, and an affirmative defense to the general effect that defendant has been in the quiet possession of the land described for one year before the filing of plaintiff’s complaint, and that his interest in the premises has not been ended or terminated.
An amendment was filed to the answer, without objection, which alleged in substance that if plaintiff’s predecessor was in possession of the premises under an executory contract of purchase his failure to make the payments under the contract rendered him in default and the contract was terminated by defendant, hence, the occupancy of plaintiff’s predecessor was without right.
The reply put in issue the affirmative allegations of defendant’s answer.
All of the pleadings described the premises as a lot, 100 feet by 250 feet in section 7, township 17 north, range 15 west, in Missoula County.
The proof showed that Jack Hartney had a contract of sale from defendant covering the lot thus described in section 7, whereby he agreed to pay $300 for the premises by paying $30 per month. None of the payments were ever made. The contract was dated August 20, 1956. Hartney died on August 12, 1958. On March 26, 1958, defendant served notice of termination and cancellation of the contract on Hartney unless the payments were made within sixty days, pursuant to the terms of the contract.
The testimony of plaintiff related to a cabin which he occupied and which was located on section 8, and not on section 7, and it is the possession of this cabin that plaintiff seeks restitution, and plaintiff’s proof as to damages related to his deprivation of possession of that cabin.
Defendant’s testimony as to that cabin was in substance that Hartney occupied it with defendant’s permission, without any rental and without any agreement as to the length of the term, and that either party to that agreement could terminate it at will. The day after Hartney’s death, defendant installed a fence around the cabin and removed some of Hartney’s personal belongings and placed them outside the enclosure. It is this action of which plaintiff complains.
The jury found the issues in favor of defendant and this appeal follows from the judgment entered on the verdict.
Plaintiff has submitted authorities relating to the reformation of a written instrument for mistake in the description of the property, but here there is no question of reformation involved. Plaixxtiff did not seek reformation of the coxxtract, axxd that issxxe was xxot litigated or sought to be litigated.
Plaintiff, ixx reliance on sections 93-9701 axxd 93-9702, R.C.M. 1947, takes the position that oxxe in peaceable possession of property may xxot be ousted of possessioxx without resort to legal remedies, and that title to the property cannot be litigated in this proceeding which he characterizes as an action in forcible entry and detainer. That these are the usual rules there can be no doubt.
This ease presents features however which must be particularly alluded to. While title to property may not be questioned in an action of forcible entry and detainer, the right of possession may be inquired into and sometimes resort to the usual legal remedies is not imperative or the exclusive remedy to regain possession.
So far as the cabin is concerned, according- to the evidence viewed in the light most favorable to defendant, in whose favor the verdict was rendered, Hartney was merely a tenant at will. 51 C.J.S. Landlord & Tenant § 159, p. 766; 32 Am., Jur., Landlord & Tenant, § 66, p. 81.
The relationship of landlord and tenant terminated on Hartney’s death. R.C.M. 1947, § 42-110, and see 32 Am.Jur., Landlord & Tenant, § 67, p. 83; Dugand v. Magnus, 107 Cal. App. 243, 290 P. 309; Hancock v. Maurer, 103 Okl. 196, 229 P. 611; note in 68 A.L.R. 595, and cases there cited, and 1 Washburn on Real Property (6th ed.), § 771, p. 481.
The rule applicable here was well-stated in 1 Washburn on Real Property (6th ed.), p. 516, where it is said:
“* * * The more modern doctrine of the English courts is clearly in accordance with the opinion of Baron Parke, expressed in the following- terms: ‘I should have no difficulty in saying that where a breach of the peace is committed by a freeholder who, in order to get into possession of his land, assaults a person wrongfully holding possession of it against his will, although the freeholder may be responsible to the public in the shape of an indictment for forcible entry, he is not liable to the other party.’ And the law, as generally adopted in the United States, may be assumed to be substantially as laid down by Baron Parke. If the owner of land wrongfully held by another enter and expel the occupant, but makes nse of no more force than is reasonably necessary to accomplish this, he will not be liable to an action of trespass quare clausum, nor for assault and battery, nor for injury to the occupant’s goods, although, in order to effect such expulsion and removal, it becomes necessary to use so much force and violence as to subject him to indictment at common law for a breach of the peace, or under the statute for making forcible entry. In accordance with the foregoing propositions, the cases cited below seem fully to sustain the doctrine, that trespass will not lie in favor of a tenant by sufferance against his landlord for entering and expelling him from the premises, assuming, of course, that he uses no unnecessary force or violence in so doing. ’ ’
The rule is stated in the annotation in 45 A.L.R. 317, as follows:
"It is generally held that where the tenant’s right of possession has terminated, and the landlord enters peaceably, as in the tenant’s absence, he may maintain his possession by the use of such force as is reasonably necessary.”
Plaintiff contends that the court erred in refusing several of his proposed instructions. We have given consideration to these contentions and find them without merit. Some of the proposed instructions were not correct statements of the law, others contained matters covered by other instructions given. We hold that the jury was properly and adequately instructed and that there is no cause for reversal because of the instructions given or refused.
Other points have been urged by plaintiff, as grounds of reversal, and particularly as to whether error was committed in not allowing plaintiff to amend the complaint to include a prayer for exemplary damages against defendant. Since the jury found in defendant’s favor, plaintiff has not been prejudiced by the court’s refusal to allow the amendment.
Other contentions of plaintiff have been considered, and we find no cause for disturbing the verdict or judgment.
Tbe judgment is accordingly affirmed.
MR. CHIEF JUSTICE HARRISON and MR. JUSTICES BOTTOMLY, ADAIR and CASTLES concur.
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MR. JUSTICE ADAIR
delivered the Opinion of the Court.
On September 10, 1957, Martha Heaphy, an elderly school teacher, residing in Anaconda, Montana, filed in the district court for Deer Lodge County, Montana, a petition requesting that she be appointed the guardian of the person and estate of her cousin, Mary Dalton, which estate the petitioner stated was of the estimated value of $76,000.
To represent her in drafting the petition and in instituting and prosecuting the proceeding, the petitioner, Martha Heaphy, retained and employed Emmet T. Walsh, a duly licensed and practicing attorney at law, residing and maintaining his law offices in Anaconda.
A day was set for the hearing of Miss Heaphy's petition, — due notice was given of the hearing, — citation was promptly issued and duly served upon Mary Dalton and the hearing held following which Mary Dalton was adjudged to be an incompetent person.
On October 4, 1957, Martha Heaphy was granted letters of guardianship for the person and estate of Mary Dalton and such guardian retained and employed Emmet T. Walsh, Esq. as and for her attorney whereupon Mr. Walsh instituted appropriate proceedings incident to such guardianship.
During the course of such guardianship proceedings it was discovered that the guardian periodically received dividend cheeks from certain corporations for which the stock certificates could not be found, as such certificates had either become mislaid or lost, and it was also discovered that some of the ward’s stock certificates had been endorsed in blank, all of which occasioned and required prompt and extraordinary work and services on the part of Attorney Walsh, who immediately wrote all the corporations involved for a transcript of the stock holdings of the ward, Mary Dalton.
After a transcript of the ward’s stock holdings had been obtained from nine different corporations a comparison check was made with existing holdings and thereby the lost or mislaid stock certificates were ascertained following which Attorney Walsh notified the New York Stock Exchange of the lost stock certificates and procured stop orders to prevent the transfer of the certificates in the event they had fallen into the hands of others. Thereafter Attorney Walsh submitted affidavits of loss to the transfer agent of each of the nine corporations and indemnity bonds were supplied at a cost to the ward’s estate of approximately $5,500.
Thereafter replacement stock certificates were received by the ward’s estate, the first of which were received in July 1958 and additional stock certificates were obtained each month thereafter during the remainder, of that year the last being restored in December 1958.
The total of the restored stock amounted to 1806 shares valued at $155,479.88 and in January 1959, 100 shares of Montana Power stock, which had been endorsed in blank by the ward, were restored and placed within the control of the guardian.
In addition to the above extraordinary services, Attorney Walsh, for over eighteen months carried on and attended to all other necessary details and proceedings incident to the guardianship.
On April 17, 1959, Martha Heaphy filed her first account as guardian wherein she accounted to the district court for the period from October 4, 1957, to April 14, 1959, for inventory and cash received in the total amount of $209,420.12 and at the same time said guardian petitioned the district court to determine and award a reasonable allowance and fee for her services as guardian and to also determine and award a reasonable allowance and fee for her said attorney, Emmet T. Walsh.
After the filing of her aforesaid first account and petition and prior to the hearing thereon, Martha Heaphy decided that she would not take or accept any fee whatever for the services rendered by her as guardian and that she would merely seek reimbursement from the estate for her own outlay and expenses incurred and she also expressed some doubt as to the amount of the fee that should be allowed for the professional services that had been rendered by her attorney, Emmet T. Walsh, and, to protect the estate of her ward, the guardian employed additional counsel to represent her interests at the hearing involving the determination of the amount of attorney’s fees to be allowed Emmet T. Walsh.
The hearing on the guardian’s account and petition was held June 12, 1959, at which time it was mutually agreed that the fact that an attorney’s fee was then owing was not in question and concerning which matter the only question was as to the amount of such attorney’s fee.
In her account and petition so filed the guardian failed to request the allowance of any specific amount as and for attorney’s fees and she only petitioned “that a reasonable allowance be made for attorney’s fees.”
At the hearing, the testimony of seven duly licensed and practicing- lawyers, residing in either Anaconda or Butte, Montana, qualified as expert witnesses and gave testimony on behalf of Attorney Emmet T. Walsh, as to what amount, under the circumstances shown to obtain in the instant action, would constitute a reasonable attorney’s fee herein and each of said witnesses was cross-examined by the newly retained counsel then and there representing Martha Heaphy, the guardian.
In addition to the above expert testimony it was brought out at the hearing that there was a district court rule in that particular jurisdiction which set, as the attorney’s fee in a guardianship' proceeding, an amount equal to 5 % of the total amount accounted for in the estate.
After hearing and considering all the evidence submitted at the hearing the Honorable William F. Shallenberger, district judge presiding, made and entered certain findings and an order settling the account of the guardian and determining and authorizing the payment of an attorney’s fee to the guardian’s counsel, the concluding paragraphs whereof read:
“* * * the Court, after hearing the evidence,
“Finds That All Of the statements in the said Account and Report are true and correct; that vouchers have been filed therein; that the total amount that the Guardian herein has accounted for during the period is Two Hundred Nine Thousand Four Hundred Twenty and 12/100 Dollars ($209,420.12) ; and that said Guardian has in her hands belonging to said Estate the sum of One Hundred Ninety-five Thousand Eight Hundred Eighty-four and 26/100 Dollars ($195,884.26) in cash, stocks, bonds and real estate; and it appearing that the Guardian has waived any claim to fee in Open Court, and it appearing that the sum of $10,200.00 is a reasonable and proper amount to be allowed as attorney fees herein to Emmett T. Walsh, Attorney for the Guardian.
“It Is Therefore Ordered, Adjudged And Decreed that the First Annual Account of said Martha Heaphy, Guardian, be and the same is hereby approved, allowed and settled.
“It Is Further Ordered, Adjudged And Decreed that the said Guardian pay to Emmet T. Walsh the sum of $10,200.00 as and for Attorney Fees as Attorney for said Guardian.”
,This is an appeal by Martha Heaphy from that portion of the above-quoted court order determining and allowing the attorney’s fee to appellant’s counsel.
Three specifications of error are listed in appellant’s brief.
Jurisdiction. In her printed brief, the appellant contended that the trial court was without jurisdiction to fix the fee of the attorney for the guardian. On the oral argument of this appeal appellant’s counsel, in open court, abandoned this specification and contention. Clearly such specification had no merit.
Court Buie. In her printed brief, the appellant next contends that the rule of the district court upon which that court based its order was invalid because: (a) it was not published; (b) it is contrary to law; and (e) it is based upon a misconception of the statute relative to guardian’s fees in Veterans’ Administration affairs.
The court rule upon which the attorney’s fee, in the instant case, is based was announced and proclaimed in open court on May 6, 1958, by the Honorable Sid G. Stewart, then the duly appointed, acting and qualified district judge in and for the third judicial district of the State of Montana, wherein is situate all of the County of Deer Lodge. At that time, concerning the rules governing guardianship matters, Judge Stewart said:
“I might say to you gentlemen at this time that there is no Court Rule in this jurisdiction in regard to this matter. The Court Rules that we have at the present time show no rule on it, and I thought it would be well to establish a rule at this time.
“I would like also for the record to show that in addition to the testimony received before the Court in this matter that the Veterans’ Administration also allows a five percent fee for the guardian and attorney, and the Court believes that that is an adequate and proper fee for both, and will adopt that as a Court Buie for this Court from now on.”
None of the contentions here made and presented by the appellant on this appeal respecting this court rule was raised in the district court and such court rule was introduced in evidence in the district court in the instant proceedings without objection.
Notwithstanding these facts we shall here consider appellant’s contentions concerning the rule. First appellant contends the rule was not published as required by R.C.M. 1947, § 93-503, which states: “Rules adopted by any court take effect thirty days after their publication.”
The mode of “publication” of court rules is not prescribed by the Montana statutes. Publication may be accomplished by the performance of any one of the various acts constituting publication as generally defined and understood. Webster’s New International Dictionary (2d ed.), defines publication as “Act of publishing, or state of being published; public notification, whether oral, written or printed; proclamation”.
Thus, on May 6, 1958, when Judge Stewart orally announced and proclaimed, in open court, that the 5 percent rule would be the court rule in his court he then and there “published” the rule. The rule, governing the attorney’s fee to be allowed in this matter and in other similar matters, had been in full force and effect for over a year prior to the hearing in the instant case.
Next, the appellant challenges the validity of the rule upon the ground that the percentage allowed as a fee, pursuant to the court rule, is an unreasonable amount.
The rule announced and proclaimed shows that the amount of the fee to be allowed is founded upon a standard set up by the Veterans’ Administration in guardianship matters in which the Administration is involved or interested. The question then arises as to whether the standard, so fixed and followed, is reasonable. The appellant urges that the standard set, i. e., 5 per cent is a maximum in Veterans’ Administration affairs, but R.C.M. 1947, § 91-4812, provides:
“Compensation payable to guardians shall be based upon services rendered and shall not exceed five percent (5 %) of the amount of moneys received during the period covered by the account. In the event of extraordinary services by any guardian, the court, upon petition and hearing thereon may authorize reasonable additional compensation therefor. A copy of the petition and notice of hearing thereon shall be given the proper office of the veterans’ administration in the manner provided in the case of hearing on a guardian’s account or other pleading. No commission or compensation shall be allowed on the moneys or other assets received from a prior guardian nor upon the amount received from liquidation of loans or other investments. ’ ’ Thus the 5 percent, while a maximum amount, is generally accepted and has received legislative sanction. Appellant argues that this amount is unreasonable and appears disproportionate when the ward’s estate is of substantial value, but in view of the expert testimony and other evidence submitted to the trial court we find no merit in such contentions.
The last point urged by the appellant is that the trial court in adopting its rule has misconstrued the statute, R.C.M. 1947, § 91-4812, supra, and that the 5 percent figure is a maximum applicable to income only. A reading of District Judge Sid G. Stewart’s proclamation shows that he used the Veterans’ Administration rule solely as a guide. He never exceeded the maximum there set out, he established it as his rule. We cannot see where the setting of a fee at the maximum amount generally is erroneous. There is no rule requiring that the amount be set at a minimum figure. As applied by Judge Stewart when he proclaimed the rule, the amount was based upon corpus and income reported. A reading of section 91-4812, supra, amply supports this interpretation of the statute. It states “money received” which generally includes both “corpus” and “income”. We so interpret the statute.
We find no merit whatever in any of appellant’s contentions challenging the validity of the district court’s rule. The rule was in full force and effect at the time that this hearing was held, and the Honorable William F. Shallenberger, a duly elected, qualified, and acting judge of the fourth judicial district, called in to preside because of the disqualification of Judge Stewart, followed the court rule which prevailed in the jurisdiction wherein the hearing was held as he should and he correctly set and determined the attorney’s fee pursuant to that rule.
Since the judgment rendered by Judge Shallenberger was based upon the court rule which controlled the issue before the court in which he was then presiding, the question of whether the fee was shown to be reasonable is not now before this court. Notwithstanding, appellant’s brief devotes considerable argument to that point, hence, we direct attention to the record before us on this appeal which contained an abundance of evidence which establishes that the fee allowed herein was and is a reasonable one.
Splendid Services Rendered. At the hearing before Judge Shallenberger the guardian and appellant, Martha Heaphy, testified as follows:
“Q. Of course, now, there is absolutely no objection, as far as you are concerned, that Mr. Walsh be reimbursed for any costs that he has advanced in this estate, is that right? A. I definitely think that he should have a fair reimbursement, by all means. I think that he did a very fme job in compiling it, and I think that everybody should be paid for their work.
“Q. Except yourself? A. Well, I feel that —■ you know, school teachers are never paid.
“Q. And you have always insisted that you intend to waive your fee in this matter? A. Yes. All that I am asking for is just the actual money that I have expended.
“Q. Just what you have expended? A. Yes. * * *
“Q. I believe you stated that you felt that Mr. Walsh not only should be reimbursed for the expenses that he had advanced in the guardianship, but you also definitely feel that he is entitled to a fee for the splendid services that he has rendered, is that correct? A. Would you state that again, please?
“Q. You stated a minute ago that you felt that Mr. Walsh was entitled, not only for the expenses that he had advanced in the guardianship, but you, also definitely feel that he is entitled to a fee for the splendid services that he has rendered this guardianship estate? A .Yes, I do.”
The evidence submitted amply supports the fee allowed and there was and is no evidence that in a guardianship matter of this magnitude and proportion, a lesser fee would have been reasonable. The fee allowed by the district court from the evidence produced, if judged on the basis of reasonableness, was and is the minimum fee, “for the labourer is worthy of his hire.”
District Judge Shallenberger, fixing and allowing the fee upon the basis of the court rule, ably summed up the evidence and the basis for his ruling when he said:
‘ ‘ This is not just a case of a lot of lawyers testifying and buttressing and ganging up upon some poor incompetent’s estate, as I see it, but is simply the case of a rule which has been enunciated, and has been in operation in the district here.”
The order of the district court setting and allowing the attorney’s fee in this matter is affirmed.
MR. JUSTICE ANGSTMAN and THE HONORABLE W. W. LESSLEY, District Judge, sitting in place of MR. JUSTICE BOTTOMLY concur.
MR. CHIEF JUSTICE HARRISON and MR. JUSTICE CASTLES dissent.
|
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MB. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
This is an appeal from a judgment of the district court of Silver Bow County reversing an order of the Industrial Accident Board.
The respondent and claimant is Florence Guarascio, the widow of Louis Guarascio; the appellant and defendant is the Industrial Accident Board.
The claim for compensation arises out of the following facts. The deceased, Louis Guarascio, was an itinerant terrazzo tile worker and a resident of Salt Lake City, Utah, at the time of his death.
From the record it appears that the Cahill-Mooney Construction Co. was the general contractor for the construction of the Silver Bow County hospital in Butte, Montana. A subcontract for magnesite and terrazzo tile flooring was awarded to Roy Ayers doing business as the Bozeman Granite Works. One Arthur Kauffmann was responsible for supervising the installation of the tile flooring and was empowered to hire and discharge employees in connection with the subcontract. Said employees were covered under Plan III of the Workmen’s Compensation Act by the Cahill-Mooney Construction Co.
In July 1959, Kauffmann contacted one Harold Wagner of Salt Lake City, Utah, to secure the latter’s assistance in obtaining skilled tile workers for the Butte hospital job. At this time the deceased Guarascio was working in New Orleans, Louisiana. In his talk with Wagner, Kauffmann discussed the possible employment of the deceased and also the fact that he would be willing to pay Gnarascio travel pay from Salt Lake City, Utah, to Bntte, Montana.
On August 1, 1959, Kauffmann talked on the telephone to Guarascio, in which conversation the latter was offered a job on the Butte hospital. On the following day, Sunday, August 2, 1959, the deceased left Salt Lake City in his own automobile en route to Butte, Montana. At approximately 8:00 P.M., August 2, 1959, Guarascio met his death in a one car accident on U. S. Highway No. 91 near Lima, Montana.
Guarascio’s widow made a claim for benefits under the Montana Workmen’s Compensation Act. After hearing the matter the Industrial Accident Board denied and dismissed the claim. By stipulation the matter was submitted for review to the district court of Silver Bow County upon the record of the Industrial Accident Board and briefs of counsel. The district court made its findings of fact and conclusions of law and entered a judgment reversing the Board’s order and directing that the Board pay to the claimant widow the benefits to which she is entitled under the Workmen’s Compensation Act.
The issues presented by the foregoing facts are: first, whether or not the deceased workman was an employee of the subcontractor to Cahill-Mooney Construction Co. at the time he met his death; and, second, if so, whether or not he was acting within the course and scope of that employment at the time of the accident.
Before considering the second issue set forth above, the basic premise of employment must be established. Marker v. Zeiler, 140 Mont. 44, 367 P.2d 311 (1961). Applicable at this point is section 92-411, B.C.M.1947, which defines an employee as “every person in this state * * * who is in the service of an employer # * # under any appointment or contract of hire, expressed or implied, oral or written * * Whether or not the decedent Guarascio was an employee at the time of his death within the meaning of the above-quoted statute depends on whether or not there was a contract of hire between said decedent and the subcontractor to the Cahill-Mooney Construction Co.
In this regard, a perusal of the record reveals that Mr. Kauffmann possessed the power to hire and fire employees in connection with the subcontract to lay the tile flooring, that Mr. Kauffmann contacted the deceased relative to the Butte hospital job, and that Kauffmann offered the deceased Guarascio a job on the Butte project. A further examination of the record indicates that claimant’s witnesses, Harold Wagner, Delores Wagner, and the claimant widow testified that the deceased Guarascio understood himself to be so employed by Kauffmann and left his home on August 2, 1959, to go to the job in Butte, Montana. We believe that this is sufficient evidence to show that on August 2, 1959, at the time of his death, Louis Guarascio was employed (on the Butte hospital job) as terrazzo tile layer by the subcontractor to the Cahill-Mooney Construction Co. within the meaning of the statute.
Section 92-411, portions of which are quoted, supra, clearly contemplates the informal, oral type of employment contract, which is involved in the instant case. We think the conduct of Mr. Kauffmann was such as to lead a reasonable man to believe he was being employed, and that is all that is needed. See Zurich General Accident & Liability Assur. Co. v. Ind. Acc. Comm., 132 C.A. 101, 22 P.2d 572, 573 (1933).
Finding a contract of hire between the decedent and the subcontractor to the Cahill-Mooney Construction Co., we must next inquire into whether or not Guarascio’s death arose out of and in the course of his employment as required by section 92-614, RC.M.1947.
Although we have no case factually identical to the instant case, a somewhat related situation was presented in Griffin v. Ind. Acc. Fund, 111 Mont. 110, 106 P.2d 346, which the appellant contends controls the case at bar. In the Griffin case the workman, after completing his regular shift, received fatal injuries resulting from a fall on a sidewalk while proceeding to his home. In denying the widow claimant compensation, this court said: “* * * a workman is not entitled to compensation for injuries received while traveling to and from his place of work by an instrumentality not under the control of the employer, and when he is subjected only to the ordinary street hazards common to all pedestrians.” Suffice it to say that this language does not support appellant Board’s position for the simple reason that, at the time of his death, Guarascio was not traveling to or from his home, but rather, to the job in Butte, Montana, for which travel he was to receive remuneration.
However, reading on in the Griffin case, supra, we find the following relevant language: 1 ‘ * * * if the employee is injured while carrying on the business of the employer for which he was employed, there is liability even though the injury occurred off the premises of the employer or by an instrumentality not under control of employer.
“It does not follow that an injured workman can never recover for injuries received in ordinary street hazards. A person injured on the street or highway is entitled to compensation when, as part of his employment, he is using the streets or highways in carrying on the work of his master.”
In like manner, we agree with the authorities who hold that an injury suffered by an employee while performing an act for the mutual benefit of the employer and employee is compensable, because when some advantage to the employer results from the employee’s conduct, his act cannot be regarded as purely personal and wholly unrelated to the employment. For an annotation see 161 A.L.R. 1454.
In the instant case, the decedent Guarascio was carrying on the business of his employer by transporting himself to Butte, Montana, so that he could be on the job as soon as possible. Furthermore, the employer recognized the benefit to it by virtue of the fact that the decedent workman was to receive monetary compensation for the time spent traveling to the job.
In Morgan v. Ind. Acc. Bd., 133 Mont. 254, 321 P.2d 232, this court made the following observation:
“What is the underlying principle? In cases where some reasonably immediate service to the employer can be discerned the claim has been sustained. Where there has been no reasonably immediate service, the claim has been denied. Such impresses us as a fundamental rule and guide for the liberality to which this court is necessarily and properly committed and for which claimant’s counsel so earnestly contend. See R.C.M.1947, § 92-838; Sullivan v. Roman Catholic Bishop, 103 Mont. 117, 61 P.2d 838; Yurkovich v. Industrial Accident Board, 132 Mont. 77, 314 P.2d 866, citing Tabor v. Industrial Acc. Fund, 126 Mont. 240, 247 P.2d 472, and other cases. Beyond this each decision must be controlled by the particular facts and circumstances of the particular case. Partoll v. Anaconda Copper Min. Co., 122 Mont. 305, 203 P.2d 974, supra. Our opinion proceeds upon that premise. ’ ’
The record here substantiates the findings of the district court, but we wish to again state, as we did in the Morgan case, that we “ ‘do not intend to establish any precedent * * * Our decision is limited to the facts in the case now before us.’ Kennedy v. Thompson Lumber Co., supra, 223 Minn. 277, 26 N.W. 2d 459.”
The judgment is affirmed.
MR. JUSTICES ADAIR, DOYLE and JOHN C. HARRISON concur.
|
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JUSTICE McDONOUGH
delivered the Opinion of the Court.
Shirley Bragg, Trustee of the Raymond W. George Trust (Trustee Bragg) appeals from an order of the Sixth Judicial District, Park County. The District Court denied Trustee Bragg’s motion to withdraw her previously granted petition for declaration of right and authority to sell real property held in the trust to Double AA Corporation (Double AA). The court further ordered that Trustee Bragg proceed with the sale to Double AA and enjoined her from permitting logging operations on the ranch property. Intervenor, James W. Sievers (Sievers), and Trustee Bragg appeal. We affirm in part and reverse in part.
We will address the following issues:
I. Did the District Court err by granting Trustee Bragg the right and authority to sell real property held in trust?
II. Did the District Court err by ordering Trustee Bragg to proceed with the sale to Double AA?
III. Did the District Court err by enjoining Trustee Bragg from permitting any logging to occur on the subject property?
In addition to the issues as stated above, there is a motion before the Court to take judicial notice of admissions requested and unanswered in previous litigation involving this trust. We generally will not allow a party, Sievers as intervenor in this case, to introduce additional evidence once a case has been brought for appeal. Downs v. Smyk (1979), 185 Mont. 16, 604 P.2d 307. In Smyk, we refused to examine a deposition given in a proceeding previously decided by this Court because the deposition was extraneous to the record on appeal.
Here, the admissions we are asked to consider were filed in an action in United States District Court by Sievers in his attempt to remove Bragg as Trustee. The instant case arises from a petition filed by Trustee Bragg in the Sixth Judicial District Court requesting a declaration of right and authority to proceed with sale of trust real property to Double AA. The requested admissions were not considered by the trial court in this matter and will not be considered on appeal. “In equity cases and in matters and proceedings of an equitable nature, the supreme court shall review all questions of fact arising upon the evidence presented in the record ...” [emphasis supplied] §3-2-204(5), MCA. Sievers’ motion to take judicial notice of the requested admissions is therefore denied.
Raymond W. George died in April 1974. His will, probated in the Sixth Judicial District, Park County, created a testamentary trust, the corpus of which includes the real property that is the subject of this action. His widow, Olga George, was named as income beneficiary; Raymond’s children were named as remaindermen; and Maxine George, one of Raymond’s children, was named as trustee. Appellant, Shirley Bragg, another of Raymond’s children, became successor trustee following Maxine George’s death. Maxine’s remainder interest in the trust passed at her death to Cleto McPherson, Maxine’s husband and sole heir.
Leo Ray George, another of Raymond’s children, and Cleto McPherson conveyed their remainder interest in the trust, by separate deeds, to intervenor James W. Sievers. Sievers currently holds a % interest as beneficiary in the remainder of the trust.
Trustee Bragg initiated this action after entering an agreement with Double AA Corporation to sell the real property held in the trust for $1,300,000, and other benefits. The court entered an order granting Trustee Bragg permission to sell the trust property. Thereafter, Trustee Bragg filed a motion requesting to withdraw her petition and to cancel the sale to Double AA. The District Court denied the motion and ordered that the sale proceed. The court further granted Double AA’s motion to enjoin logging or any other waste from occurring on the property. Trustee Bragg and Sievers appeal.
Despite Trustee Bragg’s initial request for court approval of sale of the subject ranch property, Bragg now contends that such sale is impermissible because it is inconsistent with the testator’s intent and against the best interests of the beneficiaries. This action was filed pursuant to §72-35-301, MCA, which provides the court equitable jurisdiction, upon application of the trustee or any beneficiary, to approve discretionary acts of the trustee. The appellants contend that a review of Raymond George’s will as a whole reveals that he intended to preserve the ranch unless sale was necessary to maintain the health and maintenance of his widow, Olga.
The will, and the trust instrument incorporated therein, expressly provides the trustee the power and necessary authority to sell the real property held in trust. However, the appellants contend that regardless of any expressed provision granting specific powers to the trustee. § 72-34-130(1), MCA, mandates that a trustee:
... shall act in accordance with fiduciary principles and may not act in disregard of the purposes of the trust.
The appellants rely on various references to the trust as “real property”, throughout the will, as demonstrating Raymond George’s intent to maintain the corpus of the trust as real property. The appellants further rely on Paragraph V (the portion of the will which creates the trust), part b of the will which provides:
The Trustee may, in her sole and absolute discretion, invade the principle of the Trust and pay so much thereof as maybe necessary, to or for the benefit of my wife, for her health and maintenance, if all other sources of property of my wife shall be exhausted.
The above language is argued to limit the sale of property to circumstances where such sale is necessary for the health and continued maintenance of Olga George. Because there is no such necessity in the instant case, it is argued that the sale is beyond the discretionary powers of the trustee.
We agree with the appellants that:
The intention of the testator should control the disposition and the intent shall ‘be found from all parts of the will ... construed in relation to each other ... to form one consistent whole.’ “
Estate of Evans (1985), 217 Mont. 89, 94, 704 P.2d 35, quoting In the Matter of the Estate of Erdahl (1981), [193 Mont. 103,] 630 P.2d 230, 231, 38 St.Rep. 978, 980. However, we do not agree with the conclusion that Trustee Bragg would be acting beyond her discretion by exercising her power of sale of the property.
Paragraph V, part b, quoted above, does not limit the trustee’s authority to sell the property. The words of limitation relied on by the appellants refer specifically to invasion of the corpus of the trust. There is no indication that Trustee Bragg intends to invade the corpus of the trust, her request is merely to change the character of the trust investment from land to cash. The powers exercisable by the trustee include the discretion to sell the ranch or any other asset held by the trust.
Numerous provisions of the trust instrument provide clear support for sale of the real property. For example, section r of “Powers Exercisable By Trustee” provides the trustee the power:
To sell publicly or privately, for cash or on time, without an order of the cotut, upon such terms and conditions as to her shall seem best, any property, real or personal, included in the estate ...
The bulk of the trust “estate”, as intended and created by Raymond George, is the ranch property. There is no doubt that the trustee was authorized to sell the ranch consistent with her fiduciary duties. We conclude that Trustee Bragg had the right and authority to sell the ranch and the District Court is affirmed on this point.
The District Court noted, in its original order, two issues necessary for resolution of the action filed by Trustee Bragg; whether or not Trustee Bragg has the legal authority to sell the ranch (addressed above) and whether or not the proposed sale to Double AAis fair and equitable. The District Court found Double AA’s offer of $1,300,000, and other benefits, to be very fair and reasonable. This finding is supported by the evidence, is not clearly erroneous, and is therefore affirmed.
We turn now to whether or not the District Court erred by ordering Bragg to proceed with the sale to Double AA. During the proceedings, the District Court specifically noted in an order that:
It does not appear to the court at this point that this action on the petition to approve sale of the trust property is the proper vehicle to determine the merits of any claim of Double AA against the trustee and other interested persons for specific performance, breach of contract, or damages.
Later, the District Court, in an effort to avoid further litigation, did in fact order specific performance of the sale.
Rule 54(c) M.R.Civ.P., allows the court to grant relief to which a party is entitled even if such relief was not demanded in the party’s pleading. However, the court may not grant relief not specifically requested when the facts and issues necessary to support such relief have not been tried and proven at trial. Smith v. Zepp (1977), 173 Mont. 358, 567 P.2d 923. Long ago we stated that the court could grant “any relief to which the plaintiffs are entitled upon the allegations of the complaint and the proof introduced at trial”, [emphasis supplied], Merk v. Bowery Mining Co. (1904), 31 Mont. 298, 78 P. 519.
This is neither a proceeding for specific performance nor an action to litigate the rights between the trust and Double AA. No opportunity was ever provided to the parties to present evidence relative to the enforcement of the agreement. The validity of the contract between the trust and Double AA and any rights of the parties resulting from the contract were not the subject of the litigation. The evidence presented only regarded the fairness and reasonableness of Double AA’s offer and the agreement that the parties entered. Whether or not any or all of the conditions of that agreement have been met such that specific performance is appropriate is beyond the scope of both the pleading and proof introduced.
Double AA contends the court’s order to proceed with the sale to Double AA was a proper exercise of its equitable supervisory authority over the internal affairs of the trust. Section 72-35-301, MCA. However, it remains that any relief provided by the court must be based on evidence presented before the court. The equitable question of specific performance was not properly raised and litigated. Therefore, we conclude that the District Court’s order to proceed with the sale was in error and the District Court is reversed on this point.
The final issue for our review is whether or not the court erred by enjoining logging operations on the ranch. On May 29, 1991, Double AA applied for an order restraining Trustee Bragg from logging trust property. The motion was granted June 5, 1991. No hearing has ever been held regarding the injunction.
Section 27-19-314, MCA, provides that an injunction issued without a hearing is a temporary restraining order. By law, a temporary restraining order expires in 10 days. Section 27-19-316(4), MCA. The District Court in its order and accompanying memorandum stated that it was granting the injunction regardless of whether the order strictly complies with the injunction statutes. We conclude that the District Court acted beyond its discretion and contrary to the statutory mandates regarding injunctive relief. Therefore, we reverse the court and dissolve the injunction.
The District Court is affirmed in part and reversed in part.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON, HUNT, TRIEWEILER, GRAY and WEBER concur.
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DECISION
The application of the above-named defendant for a review of the sentence of five years, imposed on June 3, 1968, was fully heard and after a careful consideration of the entire matter it is decided that:
(1) The sentence be and remain as originally imposed by the sentencing court. '
The reason for the above decision is that the sentence appears proper and sufficiently lenient in that defendant was convicted of grand larceny punishable by imprisonment for not less than 1 nor more than 14 years yet received a sentence of but five years with jail time credit from April 23, 1968, to date of committment with eligibility for parole consideration in March, 1969, after being received June 4, 1968, although he has 4 prior felony convictions.
Any contention of the defendant that he was not guilty of the crime for which he was sentenced is not within the power of this Court to consider. Its power is limited to, “* * * review the judgment so far as it relates to the sentence imposed * * Section 95-2503, R.C.M.1947.
We thank Claude J. Gerbase, Jr., Esq., of the Montana Defenders for his assistance to the defendant.
SENTENCE REVIEW DIVISION
, .Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
|
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MR. JUSTICE ANGSTMAN:
Plaintiff brought this action to quiet title to certain described real property situated in Silver Bow county. Defendant Ruby Ellen Sanders is the wife of plaintiff. She filed an answer denying plaintiff’s ownership of the property and by separate defense alleged her ownership thereof.
The property in question was originally purchased from Emma Jane Cobb. The deed was taken in the name of plaintiff. On May 27, 1936, plaintiff made and executed a deed of the property to defendant. The principal question presented in the case is whether or not there was a delivery of this deed by plaintiff to defendant.
The court after trial found the issues in favor of defendant and against plaintiff. Plaintiff’s motion for new trial was denied and he appeals from the judgment. The court specifically found that the deed of May 27, 1936, from plaintiff to defendant Ruby Ellen Sanders was delivered to her and that she has been in possession thereof ever since. The deed was placed of record on September 27, 1945.
The court found that defendant contributed $500 at the time the property was purchased as the purchase price, thereof, and later made other substantial contributions to the purchase price of the property and to its upkeep. The court specifically found that defendant is now and ever since the delivery of the deed has been the lawful owner of the property.
Numerous specifications of error are made by plaintiff but they resolve themselves into one main question, namely, was there a delivery of the deed. Our province on the appeal is to determine whether or not the findings and conclusions of the court are supported by substantial evidence.
It is true that in an equity case this court has the right to make independent findings of fact after a review of all of the evidence. That is the effect of R. C. M. 1947, section 93-216, and see: Harrison v. Riddell, 64 Mont. 466, 210 Pac. 460; In re Benson’s Estate, 110 Mont. 25, 98 Pac. (2d) 868; Miller v. Miller, 121 Mont. 55, 190 Pac. (2d) 72; Hart v. Barron, Mont., 204 Pac. (2d) 797.
Bnt if there is in the record substantial evidence supporting the findings of the trial court we will not interfere with those findings. Barcus v. Galbreath, Mont., 207 Pac. (2d) 559; Sanders v. Lucas, 111 Mont. 599, 111 Pac. (2d) 1041; Conway v. Fabian, 108 Mont. 287, 89 Pac. (2d) 1022; Hayes v. Moffatt, 83 Mont. 214, 271 Pac. 433; Reynolds v. Trbovich, Mont., 210 Pac. (2d) 634. And where the evidence is conflicting we follow the conclusion of the trial judge by reason of the fact that he has the advantage denied to us of observing the witnesses and noting their conduct and demeanor on the stand. Welch v. Thomas, 102 Mont. 591, 61 Pac. (2d) 404; Lewis v. Bowman, 113 Mont. 68, 121 Pac. (2d) 162; Sanger v. Huguenel, 65 Mont. 236, 211 Pac. 349; Opp v. Boggs, Mont., 219 Pac. (2d) 647. That is what Chief Justice Brantly had reference to in the early case of Bordeaux v. Bordeaux, 32 Mont. 159, 80 Pac. 6, 8, where in pointing out the duty and power of this court in an equity case, in reaching its own conclusion he said this court must, “so far as it may” exercise “a due regard for the findings of the district court, based, as they are, upon the testimony of witnesses delivered ore terms in the presence of the court”.
The evidence given by defendant briefly summarized is to this effect: That the deed from the Cobbs was to be made to both plaintiff and defendant; she supposed that had been done not having read the deed. When her attorney examined the abstract which was after she had the deed from plaintiff, she learned that the deed from the Cobbs was to plaintiff alone. She said that on May 27 or 28, 1936, plaintiff, prior to taking a long trip by airplane, handed the deed in question to her saying: “Here, Ruby, I am going to give you what I promised you; I always promised I would take care of you. Take this and keep care of it. ” In a few days she took it to her attorney, Mr. Frame, and he advised her to record it. This she decided to do and placed it in her purse and laid it aside from time to time thinking she would record it when she would be up town. At the time the deed was given to her it was a fresh, clean deed. She carried the deed “back and forth” intending to recoil it when she was up town but never had sufficient time to do so. She had the deed in her possession from the 27th or 28th of May 1936 until it was recorded by her attorney at her direction on the 27th day of September 1945. From September 27th until the day of the trial it was in the possession of her attorney, Mr. Frame.
Defendant worked at times as a nurse during her marriage to plaintiff and used the earnings to buy food and clothing for the children.
In the fall of 1945 plaintiff gave defendant an unmerciful beating and threw her down the cellar steps. She went to her attorney to see about a divorce. At that time her attorney again advised her to have the deed recorded and this was done. Tlie parties became reconciled and continued to occupy the house as husband and wife until defendant left on November 13, 1946, because plaintiff made threats against her. She again went to see her lawyer and at that time the deed was patched up with scotch tape at places where it had been folded and worn from carrying it about.
Mr. Frame corroborated defendant on many of the important details of her testimony. He said that the deed was freshly typed when he first saw it but that it was worn in places where it had been folded at the time defendant brought it to him for final recordation.
It is true that plaintiff denies the testimony offered by defendant but this merely presented a conflict in the evidence and as above noted we will not interfere with the court’s findings under such circumstances unless the evidence of the defendant is contradictory in itself or so inherently improbable or contrary to physical facts as to be unworthy of belief. We fail to see where the evidence of defendant is subject to these infirmities.
The evidence is substantially what this court upheld as sufficient to show delivery in the case of Estey v. Haughian, 112 Mont. 36, 113 Pac. (2d) 325. Plaintiff contends that the evidence of the worn condition of the deed corroborates his testimony that it became worn while he was carrying the deed about. But there is just as much reason to believe that it was worn by reason of defendant carrying it about as it was from plaintiff doing so.
Plaintiff counts strongly on the court’s finding of fact No. 3. It expressly found that on the same day that the deed in question here was executed defendant made and executed a deed conveying the same property to plaintiff.
Defendant denied that she executed such a deed. Plaintiff and the witness Kenck both testified to the contrary.
The fact that the court on this issue rejected the testimony of defendant is no reason for rejecting her entire testimony. If the court was satisfied that her evidence on that point was deliberately false, it would only furnish grounds for distrusting other parts of her testimony, R. C. M. 1947, sec. 93-2001-1, subd. 3, and would not necessarily call for a rejection of all of it. Furthermore the court may well have concluded that defendant was mistaken about the execution of the deed from her to her husband. It would not necessarily affect the result of the case because that deed evidently was never delivered to plaintiff and it was not produced in evidence. Even though such a deed was made and even if it were intended at the time made that neither deed was to be effective until death as plaintiff testified, still plaintiff had the right to change his mind thereafter and make delivery of the deed and cause it to be operative whenever he saw fit to do so.
Plaintiff also argues that the physical facts refute the testimony of defendant because according to her evidence plaintiff never saw the deed from the time it was delivered to her in May 1936 until it was produced in court and yet he testified concerning its creases and worn condition before it was produced in court.
Tbe record does not sustain plaintiff in this particular. When plaintiff was on the witness stand he was asked to and did examine the deed. It was after he had thus examined it that he gave testimony to the. effect that its worn condition was caused by his carrying it around in his pocket.
Plaintiff contends that defendant’s evidence is self-destructive because she testified that when the deed was given to her by plaintiff she thought a grant deed could not be recorded until after death. That was a collateral matter and has no determinative effect upon the case. Within two or three days after the deed was handed to her she learned from Mr. Frame that she was mistaken about the right to record the deed.
Plaintiff points to other circumstances as indicative of the fact that his version of the facts rather than defendant’s should be accepted by this court. We have given consideration to all of these circumstances but find in none of them any justification for interfering with the trial court’s findings and conclusions.
What was said .by this court in Johnson v. Blyberg, 82 Mont. 336, 266 Pac. 1103, is applicable. This court in that case said: “Any discussion of the evidence would be utterly useless; a waste of labor and time. A careful study of the transcript, aided by the briefs of counsel, leads to the conclusion that, looking at the ease from the view most favorable to plaintiff, nothing more than a conflict of evidence is presented.”
The only other question presented is whether the court erred in overruling and denying plaintiff’s motion for a new trial. The motion questions the sufficiency of the evidence — a point we have already considered. It also was based upon alleged newly discovered evidence. It is sufficient to say of the newly discovered evidence that it is merely cumulative or impeaching in character. It corroborates the testimony of plaintiff and contradicts that offered by defendant. This court has frequently held that a motion for new trial is properly denied when based merely on cumulative testimony. In re Colbert’s Estate, 31 Mont. 477, 78 Pac. 971, 80 Pac. 248, 107 Am. St. Rep. 451; State v. Matkins, 45 Mont. 58, 121 Pac. 881; State v. G-ies, 77 Mont. 62, 249 Pac. 523; State v. Collett, 118 Mont. 473, 167 Pac. (2d) 584.
Finding no reversible error in the record, the judgment appealed from is affirmed.
MR. JUSTICE METCALF, concurs.
MR. JUSTICE FREEBOURN, not participating.
|
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
On August 10, 1970 plaintiff-appellant Warren Baillie filed suit against defendants-respondents Burlington-Northern, Inc., a corporation operating a railway in Montana, and J. W. Rollins, an individual employed by Burlington-Northern. The complaint was couched in two separate counts. The first count was addressed primarily against Burlington-Northern and in substance made these allegations: That prior to August 10, 1970 Baillie was employed by Burlington-Northern as a railroad patrolman stationed in Livingston, Montana; that he was also commissioned as a special deputy sheriff of Park County; and that he performed services for Burlington-Northern for six years, but that on August 10, 1970 the railroad, through its agents and without just cause, terminated his employment contract, discharged him, and refused to rehire him. The second count was addressed primarily against Rollins. After re-alleging the employment relationship between Baillie and Burlington-Northern, this count alleged that Rollins, while acting; within the course and scope of his employment, maliciously caused Burlington-Northern to terminate Baillie’s contract of employment. Damages for lost wages, future wage losses-, general damages, and punitive damages were sought from both defendants.
On September 18, 1973 defendants filed a motion to dismiss; on the grounds among others, that the district court lacked jurisdiction over the subject matter because the same had been preempted by federal, law. The record before the district court consisted exclusively of plaintiff’s complaint, defendants’ "motion,-and supporting briefs.- After'considering these doeuments> the district court on December 19, 1973 sustained the motion to dismiss and ordered the action dismissed with prejudice. Baillie appeals. from the judgment entered pursuant to this order.
The respective positions of the parties to this appeal can be fairly summarized as follows: Defendants contend that this is a labor dispute between an employer-railroad and an employee and therefore is exclusively within the jurisdiction of the National Railroad Adjustment Board (NRAB) under the provisions of the Railway Labor Act, 45 U.S.C.A. § 151 et seq. Baillie, however, maintains that the second count of his complaint alleges a tortious interference by, Rollins, a third-party not privy to the contract, in the contractual relations between Baillie and Burlington-Northern, and that tort actions are outside the jurisdiction of the NRAB.
The numerous annotated cases under 45 U.S.C.A. § 153, wherein the NRAB derives its authority, have construed this section of the Railway Labor Act to mean that the NRAB has exclusive jurisdiction over minor disputes involving interpretation of collective bargaining agreements or contracts between employees and railroads. See, for example, Southern Ry. Co. v. Brotherhood of Locomotive Firemen, 119 U.S.App.D.C. 91, 337 F.2d 127 (1964) and Brotherhood of Railroad Train v. Denver & R. G. W. R. Co., 290 F.2d 266 (1961), certiorari denied 366, U.S. 966, 81 S.Ct. 1925, 6 L.Ed.2d 1256, rehearing denied 368 U.S. 873, 82 S.Ct. 28, 7 L.Ed.2d 73. Such disputes include claims for wrongful removal from service. Ferro v. Railway Express Agency, Inc., 296 F.2d 847 (1961). The disposition of the present case, then, hinges upon the answer to one question: Does Baillie’s complaint sound in contract or in tort?
On its face the first count of the complaint sounds in contract. There simply is no way to read it except as an allegation of wrongful discharge, which by its nature must be a contractual breach. Concerning the second count, Baillie urges that the tort of interference with contract has been alleged and insists that the district court erred in failing to distinguish between the second count and the first. We could not disagree more, for the second count so contradicts itself as to be rendered meaningless. For instance, it is said that Rollins, in doing whatever he did to Baillie, acted within the course and scope of his employment with Burlington-Northern. We must note here that it is fundamental that a corporation can act only through its employees and officers, and the allegation in effect is directed to Burlington-Northern, not to Rollins individually. To charge the agent of the corporation is to charge the corporation. Then all that remains is an allegation that ai party to a contract — Burlington-Northern—tortiously interfered with its own contract. Different issues would be pre*sented had other torts, such as conversion or libel, been alleged, or had Rollins truly been sued in his own right, but they are not before us here.
From the foregoing it is manifest that this controversy is of the type Congress intended to be resolved only by the NRAB. The state courts lack jurisdiction over it; consequently, the judgment of the district court must be and is affirmed.
MR. JUSTICES DALY, HASWELL and JOHN C. HARRISON, concur.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
This is an appeal by defendant-appellant, Frank D. Lewis, from adverse rulings by the District Court of the Third Judicial District, Powell County, denying his motion for a new trial in one cause, and his motion to withdraw his plea of guilty in another cause. The cases have been consolidated for appeal.
Here are the facts with respect to each cause:
Cause No. 2023
Defendant was superintendent of schools in School District No. 1, Deer Lodge, from 1964 to April 1970. On December 22, 1970, an information was filed in Cause No. 2023, in the District Court, charging defendant with 32 counts of embezzlement by a public officer under former section 94-1501, R.C.M.1947, relating to certain checks written by the defendant while he was superintendent on an activity fund bank account, the property of the school district.
Because of a statute of limitations all but seven counts of the information were dismissed and trial with a jury was had on those seven counts. Defendant was convicted on three counts, relating to checks written by him on the school district activity fund. After denial of motions for judgment notwithstanding the verdict and for a new trial, the District Court, Honorable Nat Allen, District Judge presiding, sentenced defendant to one year in prison on each count, with the sentences suspended.
Defendant appealed his judgment of conviction on the three count raising three issues on appeal; one, that the evidence was insufficient to sustain his conviction; two, that he did not have the requisite intent to commit the crime of embezzlement by a public officer; and three, the District Court abused its discretion when it refused to grant the defendant a change of place of trial. This Court considered those issues, found no merit in the same and affirmed the judgment of conviction. State v. Lewis (1976), 169 Mont. 290, 546 P.2d 518.
On August 11, 1977, the defendant filed a petition in Cause No. 2023 in the District Court to vacate and set aside the judgment against him, apparently proceeding under the authority of section 95-2601, R.C.M.1947, relating to post-conviction relief. The petition was grounded on allegations that the defendant had been denied due process of law in that newly discovered evidence contained in the minutes of the school board of trustees which were not produced at the trial; the minutes did not become available and were not discovered by him until after the trial and appeal were completed; and that because thereof defendant has been denied due process of law. Attached to the petition are copies of special meetings of the school board dated March 7, 1966, March 31, 1966, April 11, 1966, and of a regular monthly meeting dated March 14, 1966. There were further attached additional monthly or special meetings’ minutes of various dates and a copy of a deposition of one William King, taken in proceedings before the United States Tax Court, wherein Frank D. Lewis was the taxpayer-petitioner. (This is presumably the Internal Revenue Service proceedings where defendant claims he was exonerated of liability for income taxes). The District Court, having considered the petition and the supporting material on October 13, 1977, denied the petition to vacate or set aside the judgment of conviction. Appeal is taken from that denial.
Cause No. 2024
On December 31, 1970, information was filed in Cause No. 2024 against the defendant Frank D. Lewis charging him with 25 counts of forgery under former section 94-2001, R.C.M.1947. Defendant entered his plea of not guilty to these counts. However, on June 4, 1971, he appeared before the District Court, again with District Judge Nat Allen presiding and informed the Court that he wished to change his plea to guilty. Before accepting the change of plea, the District Judge stated he wanted to examine the defendant and thereupon examined him closely and at length with his counsel present, covering the following subjects: (1) defendant had previously pleaded not guilty but now wanted to change his plea; (2) his true name was Frank D. Lewis; (3) he was not suffering from any physical or mental disability; (4) he was not an alcoholic, had nothing to drink that day, had never taken drugs, and was not then under the influence of drugs; (5) he understood the questions that were being asked of him and he understood his right to remain silent during those proceedings and; (6) before a plea of guilty would be accepted, the Court wanted to know that there was a factual basis upon which the plea of guilty would be entered. The Court specifically asked him about the charges in Counts 7, 6, 2, and 4, and with respect to each, examined the exhibits and obtained from defendant the admission that he had forged those instruments; likewise, with respect to each of the other 25 counts and each instrument there involved, his responses would be the same; he had received a copy of the information and had gone over it; was advised of the minimum punishment of one year and the maximum punishment of 14 years and realized he had further time to plead if he desired it; wished to plead immediately and fully understood the charges.
Thereafter the defendant specifically pleaded guilty to Counts 1 and 2, and then generally pleaded guilty to every other count, and stated to the Court that he did not want to plead not guilty to any of those counts, even though he understood he had that right. The Court then went into the question of whether or not his wish to change his plea was voluntary and determined from defendant that he entered his plea of guilty because he was in fact guilty of the crimes charged; knew he was entitled to a trial by jury; knew by pleading guilty he would not be entitled to confront the witnesses; had not received any promises as to what the Court would do if his plea of guilty were accepted. He admitted that in his presence, his counsel and the Court had discussed plea bargaining and the Court had stated to him that it would impose a certain sentence if a guilty plea were entered, but the defendant stated that such statement by the Court was not what made him plead guilty; he had not been threatened by any peace officer, county attorney or other person nor induced by them to plead guilty and had not received any promise of leniency other than what he had heard from the District Judge. He also stated he had ample time to discuss the case with his attorney, was entirely satisfied with the services of his attorney and throught his attorney was competent.
Defendant stated he had no accomplices with respect to the charges, the county attorney had not suppressed any evidence of his innocence that he knew of, no misrepresentations had been made to him in order to get him to plead guilty, nobody had lied to him to get him to plead guilty and that he had not been interrogated with respect to the charges by the arresting officers. Finally, upon one further assurance from the defendant that he felt he was absolutely guilty of the crimes charged against him, the Court accepted his plea of guilty.
Thereafter, the District Court entered judgment of conviction on his plea of guilty and sentenced him to imprisonment for a term of five years with the provision that four years and 11 months of the term be suspended and that defendant comply with certain parole provisions. Sentence was imposed on June 4, 1971.
On July 10, 1972, defendant, with new counsel, filed a motion to withdraw his plea of guilty to the 25 counts, stating (1) defendant was persuaded, upon misinformation and misunderstanding, to plead guilty although he was not guilty; (2) defendant’s former attorney had failed to interview the State’s witnesses or conduct any investigation yet informed the defendant that the State’s evidence was not subject to successful dispute and the consequences would be extremely severe unless the defendant entered a plea of guilty; (3) that defendant had entered his plea of guilty out of fear; and (4) that defendant had told his attorney he was not guilty, and had told the Court he had not received any of the money referred to in the information, and had not been properly advised.
On March 26, 1974, the District Court entered an order granting defendant’s motion to withdraw the plea of guilty except as to Counts 1,2,3, and 4. That order also confirmed the sentence previously imposed, to apply to Counts 1, 2, 3, and 4.
On October 12, 1976, an order was filed discharging the defendant from probation. On August 11, 1977, the defendant filed his motion for an order authorizing withdrawal of his guilty plea to Counts 1, 2, 3 and 4. The grounds of his newest motion were that he had entered his plea of guilty to all 25 counts .on the advice of his then counsel; his then counsel had put extreme pressure on him and on his wife to get him to plead guilty to the charges; he had pleaded guilty because of the extreme coercion by his counsel although he was innocent and had been innocent all along; his counsel had advised him if evidence was available at a later date he could always withdraw his plea of guilty and present the evidence in trial; subsequent to the guilty plea he had been investigated by the Postal Department of the United States and by the Internal Revenue Service and each of these agencies had exonerated him in their investigations. He also referred to the deposition taken in the Internal Revenue Service proceedings of a William King, in Tennessee, said King being the owner of a firm “KINCO”, that was connected with the alleged forged instruments. Defendant claims in the deposition William King had exonerated the defendant.
Again the District Court, this time with Honorable Robert J. Boyd presiding, denied the motion on October 19, 1977, and from denial of motion, the defendant appeals.
No appeal had been taken by defendant from the order allowing him to withdraw his guilty plea to all counts except 1, 2, 3, and 4.
Determination as to Cause No. 2023
The principal issue under this phase of the appeal is whether the newly discovered evidence claimed by the defendant requires an order setting aside the judgment of conviction founded on jury verdicts and the granting of a new trial to the defendant, Lewis. In this connection, Lewis contends that he has found minutes of special and regular meetings of the school board which were not available to him at the time of his trial; that he has also found a “red note book” in v/hich he kept personal notes with respect to the proceedings before the school board, which notebook wa» not available to him at the time of his trial; and in the light of this new evidence to deny him a new trial is to deny him due process and equal protection of the law.
The State contends in essence with respect to this phase of the appeal the newly discovered evidence, even if considered material, would not compel a different result before a new jury; the trial court did not abuse its discretion in refusing a new trial; and in any event the motion of the defendant, Lewis, is governed by the rules laid down in State v. Greeno (1959), 135 Mont. 580, 342 P.2d 1052.
It is true that the holding State v. Greeno, supra, does govern in Montana in cases where new trials are petitioned for on the ground of newly discovered evidence. Of the several requisites set down by that case which the movant for a new trial must meet, we find here defendant Lewis fails in at least three of those requisites: (1) the newly discovered evidence is not so material that it would probably produce a different result upon another trial; (2) it is not shown the movant was diligent in not discovering the evidence at or prior to his trial; and (3) newly discovered evidence appears to be merely cumulative.
Lewis set out in his Affidavit filed with the District Court, in support of his motion for new trial, the following items: The minutes of July 7, 1964 would reveal that when Lewis took over as Superintendent there was a surplus of $8,000 in the budget. The minutes of April 12, 1966 would show that the County Superintendent had written a letter to the Board extremely critical of the accounting and checkwriting in School District No. 1, and the School Board was aware of the accounting and checkwriting procedure and supported it; the minutes of May 9, 1966 were revealed and the Board gave the Superintendent a large increase in pay and was not displeased with the services. The Board minutes of September 13, 1965 would show that the invoices should be attached to the claim blanks wherever possible and the Board used that same policy until September 13, 1965. Under the September 13, 1965 policy, the School Board allowed one claim blank to be used for several invoices and checks but this policy was changed in 1968 so only one claim blank could be used per invoice; the minutes of October 12, 1964 and December 10, 1964 which showed the Board was very conscious of the bill and closely inspected the same; and in conclusion the defendant argues that the introduction of these minutes and sample claim blanks would make a difference to the jury and the verdict in this case.
Lewis also claims in his Affidavit that he kept a red minutebook thought to have been destroyed or lost, and which was not obtained until after the appeal was adverse to the movant.
If we accept all those claims at face value, it still does not appear the jury would reach a different result with respect to his conviction. The minutes do not show the specific claims upon which Lewis was convicted had, in fact,'been approved or inspected by the school board. No real effort is made in the affidavit or otherwise to account for the absence of the missing minutes of the school board, or the absence and subsequent finding of the red notebook. In fact the District Court, in denying the motion for a new trial, noted that nothing appeared from the record that Lewis made any effort to subpoena the records of the minutes of the school board at anytime either before or during the trial. Due diligence in securing such evidence and preparing for trial has not been shown by Lewis. In fact, on March 23, 1972, his counsel wrote him a letter stating if need be they could go through the school records to try to find information which would be helpful to his cause.
We have ourselves examined the minutes which the defendant has produced and which he claims entitle him to a new trial, and find there is nothing in those minutes which specifically refer to the counts upon which the defendant is convicted. We can only conclude such evidence would merely be cumulative. We do not find such evidence would bring about a different result if the defendant were retried. See Roberts et al. v. Oechsli et al. (1918), 54 Mont. 589, 172 P. 1037; Ebaugh v. Burns (1922), 65 Mont. 15, 210 P. 892; Kartes v. Kartes (1977), 175 Mont. 210, 573 P.2d 191.
Moreover, the matter of granting or refusing a new trial for newly discovered evidence rests largely in the discretion of the District Court, Butler v. Paradise Valley Irr. District (1945), 117 Mont. 563, 160 P.2d 481. It does not appear to us that the District Court in any way abused its discretion here.
Accordingly, we affirm the order of the District Court denying a new trial as to Cause no. 2023.
Determination as to Cause No. 2024
In this cause, as to Counts no. 1, 2, 3 and 4 of the information, the guilty plea of defendant remains. As to those, defendant claims he entered his plea of guilty upon the representations of his then attorney that he had no chance in trial, his punishment would be severe and it was not possible to get a deposition of William King outside of the State of Montana. Defendant claims there was no attempt to obtain depositions, although later the Internal Revenue Service obtained a deposition of King. He claims William King’s deposition exonerates him and he was exonerated by the Postal Service and Internal Revenue Service. Based on these claims, defendant wants to “withdraw his guilty pleas and proceed to trial.”
The State counters, with respect to this argument, that the matter of withdrawal of the plea of guilty and a subsequent plea of not guilty rests in the discretion of the trial court and here the trial court did not abuse its discretion in denying the same; and because of the lapse of time involved, his motion to withdraw his plea is now barred by laches.
Each of the contentions raised by the State has great merit. There is no set rule or standard which can be relied on in any given case where a motion is made to withdraw a guilty plea. State v. Morgan (1957), 131 Mont. 58, 307 P.2d 244. For that reason we must rely to a great extent on the discretion of the trial court. That discretion is subject to review only upon the showing of an abuse of discretion. State v. Doty (1977), 173 Mont. 233, 566 P.2d 1388, 1390. Here we do not find any abuse of discretion on the part of the trial court.
Moreover, the claim of laches is good against the defendant here because it is quite probable the records upon which the pleas of guilty were entered are now missing or their whereabouts unknown and the availability of witnesses would of course be a question. See State v. Sattler (1976), 170 Mont. 35, 549 P.2d 1080.
There is however another stronger reason upon which we rely to determine here that defendant, Lewis, is not entitled to withdraw his plea of guilty to Counts 1, 2, 3 and 4 in this case. At the time he appeared before the District Court in order to change his plea from not guilty to guilty and at a time when he was represented by his own private counsel, the District Court went to great pains to determine the defendant knew what he was doing and his plea of guilty was being voluntarily offered. Judge Allen made a thorough interrogation of the defendant at that time. The District Court ascertained particularly that the defendant was satisfied with his counsel, and he thought his counsel was competent. If we were now to agree, upon the mere representations of the defendant at this stage, and this late in the game, that he had been coerced by his counsel to enter the guilty pleas, and all of the responses made by him to the interrogation of Judge Allen were false, we would in effect be permitting some kind of fraud to be perpetrated either upon the District Court or this Court. We are not dealing in this instance with an uneducated man, innocent of the ways of the business world.
Where a District Court has done all that it can to determine, from the defendant or otherwise, that the proposed plea of guilty is voluntarily made, the defendant understands what he is doing and is advised of the consequences of his plea, including the nature and extent of his punishment, has been adequately advised by counsel, and has been treated fairly at all stages of the prosecution against him, and that in fact the defendant states he is guilty of the charges made, then this Court has a duty to support the District Court when it allows a plea of guilty to be entered in place of a plea of not guilty.
We hold that when in the sentencing procedure, the District Court carefully, as here, examines the defendant, finds him to be competent, and determines from him that his plea of guilty is voluntary, he understands the charge and his possible punishment, he is not acting under the influence of drugs or alcohol, he admits his counsel is competent and he has been well advised, and he declares in open court the facts upon which his guilt is based, then a plea of guilty accepted by the District Court on the basis of that examination will be upheld; and a motion later made by the defendant, as here, to gainsay in effect what the defendant earlier represented to the District Court, apparently to receive a lighter sentence, can not be given any degree of credence.
It has become common place in recent times for defendants seeking post conviction relief to assail their representation by counsel during the criminal proceedings as inadequate or deficient. Such an attack however must be grounded upon facts which appear in or are easily deduced from the record and which go beyond the mere conclusory allegations in the defendant’s affidavit. There must be a showing of actual ineffectiveness on the part of the counsel. Digiallonardo v. Betzer(1973), 163 Mont. 104, 515 P.2d 705.
Nor do we agree with the contention of the defendant that he has been “exonerated” by the Postal Department and by the Internal Revenue Service of the United States Government. Nothing beyond the defendant’s affidavit has been presented with respect to the Postal Service investigation of the defendant.
As to the Internal Revenue Service, we find only a copy of a deposition taken in a proceeding before the United States Tax Court where Frank D. Lewis was petitioner and Commission of Internal Revenue was respondent. The deposition was taken on August 30, 1976 in Memphis, Tennessee. In the deposition, deponent denied having any information or knowledge that would involve defendant in the matters which were apparently the source of the charges against him. However, the whole examination of deponent gives one the impression of a very evasive witness with a vague memory and it is as likely that the Internal Revenue Service proceedings were dropped because of lack of sufficient evidence as because of any “exoneration” of defendant. If anything, deposition is adverse to defendant, because it seems incredible any person with experience and education would get involved in business with William King. He operated with only a telephone and a mailing address, using the firm name “KINCO”, and he took orders for any kind of merchandise. He filled each order by going out on the market to purchase the items, after which he added his profit and a “premium” for the purchaser and billed accordingly. The premium consisted of goods or cash. Whether in the long run he actually shipped the items ordered is open to conjecture. No matter, his customers were on the hook. He disclosed his modus operandi to his interrogator when in a revealing passage, he testified:
“Q. Everybody is on the take. A. Yes.
“Q. As I understand it, this business dealings with the schools and school districts was much like you characterized politicians, being on the take, and these people? A. There ain’t no proof on that.
“Q. I understand. You characterized it. You don’t have any proof. Each of these schools wants to receive something in order for you to get their sale? There was a little give and take? A. In other words, I made them that way.
“Q. That is how you made the sales? A. That is a salesman’s gimmick. Do you know any Jewish words?
“Q. Yes. A. I made goniffi out of them, a thief, that’s right.”
A motion to withdraw a plea of guilty and to substitute therefore a plea of not guilty is addressed to the sound discretion of the District Court. State ex rel. Foot v. District Court (1928), 81 Mont. 495, 503, 263 P.2d 979. We find no abuse of discretion on the part of the District Court in refusing to allow defendant to withdraw his plea of guilty.
Accordingly, with respect to both Causes 2023 and 2024 in the District Court, the orders of the District Court denying defendant’s motions are affirmed.
MR. JUSTICES HARRISON and SHEA concur.
MR. CHIEF JUSTICE HASWELL, deeming himself disqualified, did not participate in this case.
|
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MR. JUSTICE MORRISON
delivered the opinion of the Court.
This appeal results from a judgment entered by the Eighth Judicial District Court, Cascade County, wherein appellants were awarded wages due based upon respondent’s violation of Montana’s minimum wage and hour statute, previously found in sections 41-2301 through 41-2307, R.C.M. 1947. The same judgment denied appellants’ attorney’s fees and a penalty.
Three issues are presented on appeal:
(1) Whether the District Court erred in calculating wages due and owing to appellants?
(2) Whether the District Court erred in denying statutory penalties and attorney’s fees to appellants on their wage claim?
(3) Whether the District Court erred in holding appellants’ claim for statutory penalties was barred by the statute of limitations?
Appellants were employed at the Fort Shaw School from July, 1971, to June 15, 1974, pursuant to written contracts. During each of the years involved, Harland Sink was hired to perform custodial and maintenance duties under one contract and to drive a school bus under another contract. Ruth Sink was employed to assist Harland Sink in his duties, under the terms of a written addendum to his custodial contract. Neither of the appellants was employed for a specific number of hours; rather they were to devote such time as was necessary to complete the work. While the time devoted could fluctuate from week to week, the Sinks were paid their fixed salary according to the contract then in effect.
Appellants’ employment with the School District was terminated in the summer of 1974. That July, Harland Sink filed a complaint with the Montana Department of Labor alleging that he had not been properly paid for regular and overtime hours worked while he was employed by the School District. Subsequently, the Montana Department of Labor transferred investigation of the case to the Employment Standards Division of the United States Department of Labor. An investigation of appellants’ complaint ensued. On March 19, 1975, Harland and Ruth Sink received a letter detailing the results of the United States Department of Labor investigation. The Department of Labor’s determination was that for the period May 31, 1974, to October 16, 1974, wages in the amounts of $1,484.00 and $1,161.00 were due to Harland Sink and Ruth Sink, respectively. The Department of Labor unsuccessfully sought voluntary back payment of back wages from the School District but did not undertake court action on behalf of appellants. The Department of Labor recommended that they file their own legal action.
Appellants instituted suit in February of 1976. Their original claims were based upon the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 216(b), and the Montana Wage Payment Act (WPA) and Minimum Wage and Overtime Compensation Act (MWOCA), Title 41, Chapters 13 and 23, R.C.M. 1947. The District Court subsequently dismissed the Fair Labor Standards Act claim on the basis of National League of Cities v. Usery (1976), 426 U.S. 833, 96 S. Ct. 2465, 49 L.Ed.2d 245. The parties completed discov ery and proceeded to trial on the claims arising under Montana law.
The matter was tried by the court without a jury. Appellants testified, as did two witnesses for respondents, regarding employee obligations, duties, and amount of time required to complete the work involved. The court received final briefs and proposed findings of fact and conclusions of law subsequent to the trial.
In its findings of fact, conclusions of law and judgment, the trial court found that Ruth Sink performed custodial work at the Fort Shaw School an average of 13 hours per workweek over the 1971 to 1974 period, for a total of 1,755 hours. The court determined wages due Ruth Sink by multiplying her hours by the appropriate minimum wage and subtracting wages paid to her.
The District Court found that Harland Sink worked approximately 45 hours per week during the three year period of his employment, five hours of which were overtime for which he was not compensated at overtime rates. Because Harland Sink received a fixed monthly payment, the District Court had to calculate his weekly wages and his regular hourly wage before it could compute the total overtime wages due him.
The District Court found that Ruth Sink was entitled to $1,871.40 and that Harland Sink was entitled to $1,030.90 under Montana’s MWOCA. The District Court concluded that appellants were not, however, entitled to statutory penalties and attorney’s fees under the WPA as it was incorporated into the minimum wage and overtime compensation statutes.
CALCULATION OF WAGES DUE
Appellants contend the District Court erred in computing the amount of wages due them under the MWOCA. The errors alleged concern the trial lower court’s treatment of wages received by Ruth Sink. Appellants assert that from 1971 through 1974 Ruth Sink’s wages were deducted from Harland Sink’s wages and that therefore she actually was not paid for her work and Harland Sink’s hourly wage rate was underestimated by an amount equal to Ruth Sink’s wages divided by the number of hours Harland Sink worked. Respondents maintain that, although an addendum to a 1971 contract between the parties stated that Ruth Sink’s wages were to be deducted from Harland Sink’s wages, the evidence on the whole did not show that that in fact happened.
The evidence is undisputed that the School District contracted to pay Ruth Sink a sum of $485.60 for the services she rendered from 1971 through 1974. The evidence is also undisputed that an addendum to a 1971 contract between Harland Sink and the School District indicated Ruth Sink’s wages were to be deducted from Harland Sink’s salary. The evidence conflicts as to whether the 1972-73 and 1973-74 contracts included similar provisions.
Nevertheless the District Court properly recognized, in calculating wages due Ruth Sink, that the contract provision providing for her wages to be offset was not adhered to and she was in fact paid in addition to her husband.
The trial court found that Ruth Sink was paid $485.60 over the course of her employment. The trial court committed no error in incorporating this finding into its calculating of wages currently due Ruth Sink.
Likewise the trial court’s calculatings regarding the amount due Harland Sink are proper. The court did not find that Ruth Sink’s salary had been deducted from the amount Harland Sink was to receive under his contract. In fact Harland Sink’s answers to respondents’ interrogatories show that the actual total wages received by Harland Sink were:
1971 (6 months) $2,591.22
1972 $5,858.10
1973 $6,738.56
1974 (6 months) $3,369.24
Total Amount $18,557.42
Defendants’ answers to plaintiffs’ interrogatories show that the parties contracted the following amounts for Harland Sink’s custodial and bus driving services:
CUSTODIAL DRIVING TOTAL
1971-72 $3,383.04 $2,025.00 $5,408.04
1972-73 $3,569.16 $2,848.50 $6,417.66
1973-74 $3,747.60 $2,990.96 $6,738.56
$18,564.26 Total Amount
While it is not apparent what accounts for the $6.84 discrepancy between the three year totals, the evidence clearly shows that there is not a $485.60 deficiency between the amount Harland Sink received as wages and the amount he was obliged to receive under contract with the School District. Finding no evidentiary basis for appellants’ allegation the trial court’s findings and calculatings will not be disturbed on appeal.
STATUTORY PENALTIES AND ATTORNEY FEES
Plaintiffs’ claims arise under the MWOCA as enacted by the legislature in 1971. Chapter 417, Laws of Montana (1971), codified as sections 41-2301, et. seq., R.C.M. 1947. Section 6 of that enactment (codified as section 41-2306, R.C.M. 1947) provides that “[enforcement of this act shall be treated as a wage claim action and shall be in accordance with sections 41-1301 through 41-1324, R.C.M. 1947.” The statutes referred to in section 6 comprised the WPA, formerly found at sections 41-1301, et seq., R.C.M. 1947. At the time of enactment the WPA provided in part:
“41-1301. Semimonthly payment of wages.
“(3) The following are the definitions used for the purpose of this act:
“(b) ‘Employer’ includes any individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons, acting directly or indirectly in the interest of an employer in relation to an employee, but shall not include the United States, the state of Montana or any legal subdivision thereof.” (Emphasis added.)
“41-1302. Penalty for failure to pay at times specified in law. Whenever any employer, as such employer is defined in this act, who fails to pay any of his employees, as provided in the preceding section, he shall be guilty of misdemeanor. A penalty shall also attach to such employer and become due such employee as follows: “A sum equivalent to a penalty of five (5%) per cent of the wages due and not paid, as herein provided, as liquidated damages, and such penalty shall attach and suit may be brought in any court of competent jurisdiction to recover the same and the wages due.” (Emphasis added.)
“41-1306. Judgment for wages shall include attorney’s fee. Whenever it shall become necessary for the employee to enter or maintain a suit at law for the recovery or collection of wages due, as provided for by this act, then such judgment shall include a reasonable attorney’s fee in favor of the successful party, to be taxed as part of the costs in this case.” (Emphasis added.)
We must determine what the legislature intended when it provided that “enforcement of [MWOCA] . . . shall be pursued in accordance with [WPA] as amended.”
Appellants ask the Court to harmonize the two acts by limiting the exclusions provided under the WPA to enforcement of that act. Appellants maintain that the term “employer” as used by the MWOCA is exclusive of the WPA definition of “employer,” that under the MWOCA the term “employer” is all-encompassing and therefore inclusive of respondents, and that the phrase “enforcement ... in accordance with” means only that the same procedure and relief be afforded MWOCA-covered employees as WPA-covered employees.
Respondents support the trial court’s decision, arguing that Bitney v. School District No. 44 (1975), 167 Mont. 129, 535 P.2d 1273, controls this question. In Bitney, this court held that school districts, expressly excluded from the WPA definition of “employer,” were not liable for attorney’s fees in a wage claim action. Additionally, respondents do not read section 41-2306, R.C.M. 1947, to require that the WPA procedures and relief be available to all MWOCA-covered employees. They interpret the phrase “in accordance with” to mean that if an employer is not liable under the terms of the WPA, the employer cannot be liable for attorney’s fees or statutory penalties under WPA-based enforcement of the MWOCA.
The role of the courts in construing and applying statutes is narrowly prescribed: we must simply “ascertain and declare what is in terms or in substance contained [in statutes], and not to insert what has been omitted or omit what has been inserted.” Section 1-2-101, MCA. If possible, legislative intent must be inferred from the plain meaning of the words contained in statutes; only if there exists ambiguity in such wording should the court resort to the rules of statutory construction. Haker v. Southwestern Ry. Co. (1978), 176 Mont. 364, 578 P.2d 724.
Black’s Law Dictionary 474 (5th ed. 1979) defines “enforcement” as “the act of putting something such as law into effect; the execution of a law, the carrying out of a mandate or a command.” “Accordance” is defined as “agreement; harmony; concord; conformity.” Black’s Law Dictionary 16 (5th ed. 1979).
The plain meaning of the statutory language at issue indicates that the legislature intended that the mode of redress under the MWOCA comply with the remedial process established under the WPA. In adopting MWOCA, it is apparent that the legislature did not find it necessary to separately set forth the means by which an employee could effect his or her newly acquired rights; instead the execution framework of an existing law was engrafted onto the new law by means of incorporation. That framework specifies the process by which a wage claim may be prosecuted and the remedies afforded an employee if prosecution is successful. Successful enforcement garners not only the wages to which the employee was entitled under the substantive portions of the act but the additional relief of attorney’s fees and a penalty equal to five percent of the wages due.
We do not construe section 41-2306, R.C.M. 1947, to mean that substantive limitations of the WPA also be incorporated into the MWOCA. This Court is not required to incorporate the omitted definition in order to make enforcement under MWOCA accord with the WPA. Substantive provisions of the MWOCA refer to “every employer” or “no employer.” (See section 41-2303, R.C.M. 1947.) Neither of these references indicate that the legislature in any way intended to carve from this all encompassing language a subset of employers who would be immune from prosecution under the WPA.
Our discussion today is not at odds with Bitney v. School District No. 44, supra. Bitney has no application here as it involved interpretation and enforcement of a contract between an employee and employer. Furthermore, Bitney was not premised upon the MWOCA.
This Court need not, as appellants have argued, repeal by implication that portion of the WPA definition of employer which excludes political subdivisions of the State. A repeal by implication is appropriate only when there is an irreconcilable conflict between two statutes. Dolan v. School District No. 10 (1981), Mont., 636 P.2d 825, 38 St.Rep. 1903. That is not the case here. By limiting application of the definition of “employer” under the WPA to enforcement of that act we have avoided such a conflict and maintained the integrity of both acts. We hold the appellants are eligible for penalties and attorney’s fees under the MWOCA.
STATUTE OF LIMITATIONS
The issue regarding application of section 41-1304, R.C.M. 1947, is not properly before the Court. The District Court did not rule that plaintiffs’ claim for statutory penalties was barred by the statute of limitations. The District Court’s discussion of the statute of limitations was entirely gratuitous. This Court does not issue advisory opinions.
The District Court’s decision is affirmed in part and reversed in part. The case is remanded for consideration of attorney’s fees and the appropriate penalty.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, SHEA and WEBER concur.
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On April 27,1992, the Defendant was sentenced to ten (10) years for Issuing a Bad Check; ten (10) years for Felony Theft. Those terms are to be served consecutively with credit being given for 207 days served. The Defendant shall pay a total of $12,601.41 in restitution to the victims of these crimes.
On March 12, 1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Matthew J. Sisler, Legal Intern from the Montana Defender Project. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall remain the same as originally imposed, however, the restitution shall be removed. All other portions of the sentence shall be affirmed.
The reason for the removed of the restitution is based upon State v. Mazurkiowicz, 245 Mont. 172,_P.2d__(1990).
Hon. Thomas McKittrick, Chairman, Hon. John Warner, and Hon. James Purcell, Judges
The Sentence Review Board wishes to thank Matthew J. Sisler, Legal Intern from the Montana Defender Project for his assistance to the defendant and to this Court.
|
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
William Newton Rose (Rose) appeals a September 13,1991 opinion and order of the Third Judicial District, Powell County, which dis missed his petition for declaratory judgment requesting that he be designated a nondangerous offender for parole eligibility purposes. We affirm.
We rephrase the issues presented on appeal as follows:
Did the District Court err when it determined that Rose could not be designated as nondangerous and therefore must serve one-half of his sentence before becoming eligible for parole under § 95-2206.16, R.C.M. (1947)?
Rose was convicted by a jury of burglary in 1978. At the time he committed this offense, he was on parole. The District Court sentenced Rose to twenty-five years imprisonment and held that he was ineligible for parole “because of his (Defendant’s) past criminal record and his conduct while released on parole or furlough,” under § 95-2206(3)(b), R.C.M. (1947).
In 1984, the Sentence Review Board amended Rose’s sentence to ten years for burglary and fifteen years for being a persistent felony offender, these sentences to run consecutively, and removed his designation of being ineligible for parole.
Both the original sentence and amended sentence were silent as to whether Rose was to be designated as a nondangerous offender. Because neither sentence designated him as nondangerous, Montana Prison Warden Jack McCormick (McCormick) determined that he must serve one-half of his sentence before becoming eligible for parole under § 95-2206.16, R.C.M. (1947).
In February 1991, Rose petitioned the District Court for declaratory judgment alleging that McCormick improperly designated him as a dangerous offender because he had never been charged nor sentenced as a dangerous offender. In an opinion and order dated September 13, 1991, the District Court dismissed Rose’s petition holding that because Rose was convicted of two felony offenses in a five-year period, he could not be designated as nondangerous and therefore must serve one-half of his sentence before becoming eligible for parole under § 95-2206.16(l)(a), R.C.M. (1947).
Thereafter, Rose filed an objection to the District Court’s opinion and order. The District Court did not rule on Rose’s objection. Rose then filed this appeal.
Did the District Court err when it determined that Rose could not be designated as nondangerous and therefore must serve one-half of his sentence before becoming eligible for parole under § 95-2206.16, R.C.M. (1947)?
In 1978, an offender was required to serve one-half of his or her sentence less good time allowance before becoming eligible for parole. A nondangerous offender designation required an offender to serve one-fourth of his or her sentence less good time allowance before becoming eligible for parole. See § 95-3214(1), R.C.M. (1947).
In 1978, § 95-2206.16, R.C.M. (1947), provided in pertinent part: (1) The sentencing court shall designate an offender a nondangerous offender for purposes of ehgibility for parole under 95-3214 if:
(a) during the 5 years preceding commission of the offense for which the offender is being sentenced, the offender was neither convicted of nor incarcerated for an offense committed in this state or any other jurisdiction for which a sentence to a term of imprisonment in excess of 1 year could have been imposed; or
(b) the court has determined, based on any presentence report and the evidence presented at the trial and the sentencing hearing, that the offender does not represent a substantial danger to other persons or society."
In 1979, an Attorney General Opinion interpreting § 95-2206.16, R.C.M. (1947), then recodified as § 46-23-201(1), MCA, determined that unless an offender is expressly designated as nondangerous, that offender must serve one-half of his or her sentence before parole eligibility. 38 Op. Att’y Gen. 33 (1979).
Rose argues that the District Court erred when it failed to designate him as a nondangerous offender because he was never charged nor sentenced as a dangerous offender. He argues that even though § 95-2206.16, R.C.M. (1947) and the 1979 Attorney General Opinion required the court to expressly designate him a nondangerous offender, subsequent amendments to this statute mandate that he now be designated as nondangerous.
We hold that § 95-2206.16, R.C.M. (1947), the statute in effect at the time of Rose’s sentencing in 1978, is the statute applicable to these facts. See State v. Gone (1978), 179 Mont. 271, 280, 587 P.2d 1291, 1297. Under this statute, William Newton Rose must serve one-half of his sentence before he is eligible for parole because he was not expressly designated a nondangerous offender. The District Court’s opinion and order dated September 13, 1991, is affirmed.
JUSTICES HARRISON, McDONOUGH, GRAY and WEBER concur.
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MEMO OPINION
PER CURIAM.
James Edward Gibson^ an inmate of the Montana state prison, appearing pro se, filed 1 a ■ petition for writ of habeas corpus with this Court on July 24, 1969.
Petitioner sets out five reasons for the writ. They are: • ■
1. That petitioner has not been committed to the state prison under any process issued upon a valid final judgment of a court of competent jurisdiction. .
2: That the conviction is void because the information failed to state facts sufficient to charge a crime.
3. That the statutory provision for the crime of receiving stolen property is unconstitutional because it denies the equal protection of the law by providing different degrees of punishment for different persons for the same act.
4. That the statutory provision for the crime of receiving stolen property is unconstitutional in that it is so indefinite, vague, and uncertain in its terms that men of common intelligence must necessarily guéss at their meaning and may differ as to their application thereby denying due process of law.
5. That the statutory provision for the crime of receiving stolen property is an 'unconstitutional delegation of legislative power in that the prosecuting attorney has the discretion to charge persons with such crime either as a misdemeanor or as a felony.
Petitioner was charged, by information, with the crime, of receiving stolen property under seetiop 94-2721, R.C.M.1947, on December 4, 1967. Petitioner plead guilty to the charge because, in his own words, “* * * he was aware that, as a matter of practice in this state it was usually punished as for a misdemeanor and he was under the impression that it was a much less serious offense than it turned out to be. ’ ’ On December 11, 1967, he was sentenced to 5 years at hard labor in the state prison. Now, 1% years later, petitioner'asks this Court for a writ of habeas corpus for- the reasons set out above. ■ •
The information, to which petitioner plead guilty, read in part:
“That James E. Gibson * * * on or about the 8th day of November, A.D., 1967, at the County of Dawson, State of Montana, committed the crime of felony committed as follows: James E. Gibson committed the crime of receiving stolen property, in that the said James E. Gibson, then and there being, then and there did, wilfully, wrongfully, unlawfully, and feloniously and for his own gain, and to prevent the owner from again possessing his own property, receive from person or persons unkown, a 300 Savage rifle * # * then and there the property of Edward W. Zieman * * * said property above described then and there being stolen property, and the said James E. Gibson, then and there knowing the same to have been stolen property * *
The judgment pronounced against petitioner was signed by District Judge L. C. Gulbrandson of Dawson County.
Section 94-2721, R.C.M.1947, provides in part:
“Every person who for his own gain or to prevent the owner from again possessing his own property buys or receives any personal property, knowing the same to have been stolen, is punishable by imprisonment in the state prison not exceeding five (5) years or in a county jail not exceeding six (6) months; # « ■*
“The jurisdiction of a criminal action for receiving stolen property is in any county wherein said property was received or into or through which such stolen property has been brought. ’ ’
Section 94-114, R.C.M.1947, provides:
“A felony is a crime which is punishable with death or by imprisonment in the state prison. Every other crime is a misdemeanor. When a crime, punishable by imprisonment in the state prison, is also punishable by fine or imprisonment in a county jail, in the discretion of the court or jury, it is a mis demeanor for all purposes after a judgment imposing a punishment other than imprisonment in the state prison.” (Emphasis supplied.)
All of petitioner’s contentions are interrelated since the conviction naturally hinges ■ upon the constitutionality of the statute under which he was convicted. However, we shall first deal with contentions 1 and 2. Section 93-1301-7(15) and (16), provides there is a disputable presumption: ‘ ‘ That official duty has been regularly performed.” and “That a court or judge, acting as such, whether in this state or any other state or country, was acting in the lawful exercise of his jurisdiction.” Petioner attached a copy of the judgment to his petition as an exhibit and upon its face it complies exactly with section 95-.2301, R.C.M.1947 (and its predecessor section 94-8004), which provides:
“Upon rendition of judgment after pronouncement of a sentence imposing punishment of imprisonment or death the court shall commit the defendant to the custody of the sheriff who shall deliver the defendant to the place of his confinement or execution. ”
This Court will indulge in the presumptions noted above, which petitoner has failed to dispute, and find that the petitioner was committed to the state prison under process issued upon a final judgment of a court of competent jurisdiction.
Petitioner’s contention 2 can be dismissed summarily since the information, a copy of which was attached as an exhibit to the petition, charging him with the crime of receiving stolen property was stated in terms of the substantive statute, section 94- 2721, R.C.M.1947, which is completely in line with section 95- 1503, R.C.M.1947 (and its predecessor statute section 94-6403). See State v. Hahn, 105 Mont. 270, 72 P.2d 459.
Petitioner’s primary contention is that sections 94-2721 and 94-114, R.C.M.1947, are unconstitutional. His basic authority for this premise is an Oregon decision, State v. Pirkey, 203 Or. 697, 281 P.2d 698, and a Washington decision, Olsen v. Delmore, 48 Wash.2d 545, 295 P.2d 324. The Pirkey case Can be very easily distinguished-since the Statute there, held to bé "ünconstitutional, delegated the authority to the magistrate or: the grand jury to determine in advance whether to charge a defendant with a felony or misdemeanor. So too, in the Olsen'.case the court found the statute delegated the authority, to prosecuting officials the discretion to charge as for either a- gross misdemeanor or a felony. This is not the situation in Montana-.?- The statutes, as set out above and specifically section 94-114, have been construed by this. Court , quite extensively. In State v. Atlas, 75 Mont. 547, at p. 552, 244 P. 477, at p. 479, we stated:
“This distinction is clear; felonies and misdemeanors are distinct grades of crimes, and their boundaries must be defined by law; the line of demarcation is fixed by thé nature of the punishment which may be imposed on conviction, and ‘it is not the actual sentence but the possible one that determines the grade of the offense.’ ”
And further at pp. 552, 553, 244 P. at p. 479, we said:
“The determination as to whether a given offense shall be defined as a felony or as a misdemeanor rests with the Legislature, and, on such declaration, that body- has the right, after declaring a certain offense to be a felony, or after fixing punishment which, brands the offense as that grade of crime, to provide alternate punishments of such nature as apply ordinarily to misdemeanors, to be imposed in the discretion of the court; but this discretion to mitigate the punishment, after conviction, does not alter the nature of the crime of which the defendant has been duly convicted.” (Emphasis supplied.)
Thus, the Montana statute provides that a person must be charged with a felony under section 94-2721, R.C.M:1947, and it is within the sound, discretion of the. court, after conviction, to determine the punishment. . ,'i ..
Prom the foregoing it is quite obvious that these statutory provisions are not unconstitutional by denying equal- protection of the law, or due process of law, or for any improper delegation. of legislative power.
• The petitioner has failed to show any good cause for. a writ to issue, therefore the petition is denied and the proceeding is dismissed.
|
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DECISION
The application of the aboye-named defendant for a review of the senténce ' of thirty, years, imposed on February 26,, 1968, was fully heard and after a careful consideration of the entire matter it is decided that:
(Í) The sentence be and remain as originally imposed by the sentencing court.
The reason for the above decision is that the defendant was convicted after trial of second degree murder (shooting his wife with a shotgun) punishable by not less than 10 years' imprisonment with ho limit.. True, the sentence could have been less but it could also have been for much more under the statute. “The sentencing problem does not yield to exact analysis. It deals with human beings with differing qualities, and' is still the product essentially of a process requiring analytical skill, competence and judgment of human wisdom.” State v. Johnson, 158 A2d 746 (Conn.). Presuming, as we do, that the sentencing judge was correct in his assessment of the situation, we are unable to say the imposed sentence of 30 years with defendant, eligible for parole consideration in September, 1973, was not proper, reasonable, and sufficiently lenient, the crime and sentencing goals kept in mind.
Any contention of the defendant that the killing was an accident or that he was otherwise not guilty of the crime for which he was sentenced is not within the power of this Court to consider. Its power is limited to, “* * * review the judgment so far as it relates to the sentence imposed * * *.” Section 95-2503, R.C.M.1947.
We thank W. G. Gilbert III,' Esq., of the University Defenders for his assistance to the defendant.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
|
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JUSTICE LEAPHART
delivered the Opinion of the Court.
Pursuant to § 2-4-315, MCA, Common Cause filed a petition for rulemaking with the Commissioner of Political Practices (Commissioner) requesting the Commissioner to institute a rulemaking proceeding to clarify the definition of lobbying set forth in the Montana Lobbying Act, § 5-7-102(6), MCA. The Commissioner denied the petition. Common Cause then filed a complaint in District Court seeking declaratory relief and a peremptory writ of mandamus. The District Court granted the Commissioner’s motion to dismiss pursuant to Rule 12(b)(6), M.R.Civ.P. The court subsequently denied Common Cause’s motion to alter or amend the judgment. Common Cause appeals from the order dismissing its complaint and the order denying its motion to alter or amend the judgment. We reverse and remand.
Common Cause presents the following issues on appeal:
1. Does § 2-4-315, MCA, grant the Commissioner discretion to deny a petition for mandatory rulemaking under § 5-7-111, MCA, without first initiating rulemaking proceedings?
2. Is Mandamus an appropriate remedy?
BACKGROUND
Since this matter was dismissed under Rule 12(b)(6), M.R.Civ.P., prior to the filing of a responsive pleading or the completion of any discovery, the only facts before the District Court were those alleged in Common Cause’s complaint. As alleged in the complaint, the background leading up to this litigation is as follows: For many years Common Cause has worked to assure full public disclosure of the amounts of money that persons spend to lobby Montana legislators and public officials. As part of this effort, Common Cause wrote and then worked to pass Initiative 85 revising Montana’s Lobbying Act and requiring that lobbying expenditures be reported to the Commissioner.
The Lobbying Act states that one of its purposes is “to require disclosure of the amounts of money spent for lobbying.” Section 5-7-101(1), MCA. In 1981, this Court recognized that the purpose of Initiative 85 was “to provide for the disclosure of money spent to influence action of public officials and to require elected officials to disclose their business interests.” Montana Automobile Ass’n v. Greely (1981), 193 Mont. 378, 399, 632 P.2d 300, 311. In order to gauge how effectively the Lobbying Act was accomplishing this purpose, Common Cause conducted two surveys, one in 1984 and one in 1994. These surveys sought responses from principals as to their understanding of what activities constituted “lobbying” under the Lobbying Act and, thus, which expenditures concerning those activities were required, by law, to be reported. The survey results, which were appended to the complaint, indicate that there is substantial disagreement among the principals as to which activities are included within the definition of “lobbying.” Common Cause alleged that this disagreement as to what are and are not reportable lobbying expenditures, results in inconsistent reporting of lobbying expenditures. According to Common Cause, this inconsistency, in turn, thwarts the Lobbying Act’s statutorily-stated purpose of making public the amounts of money spent for lobbying. See § 5-7-101(1), MCA. In other words, it is Common Cause’s contention that unless there is consistency in the understanding of what must be reported, in the final analysis, the reports have no meaning.
In light of these two surveys, Common Cause filed a petition for rulemaking pursuant to § 2-4-315, MCA, on April 29, 1994, requesting the Commissioner to institute a rulemaking proceeding for the purpose of clarifying the definition of lobbying set forth in the Lobbying Act at § 5-7-102(6), MCA. Common Cause’s petition also invokes the Commissioner’s specific duty under § 5-7-111, MCA, to promulgate rules necessary to carry out the purposes of the Lobbying Act. In its petition for rulemaking, Common Cause set forth a proposed rule defining lobbying. On June 24, 1994, the Commissioner denied the petition on the basis that the rule proposed by Common Cause would alter, amend and enlarge the Lobbying Act in a way not envisioned by the Legislature and that the rule proposed by Common Cause was not reasonably necessary to effectuate the purpose of the Lobbying Act.
Thereafter, Common Cause filed an application for peremptory writ of mandamus and complaint for declaratory relief in the District Court. Common Cause requested a writ of mandamus requiring the Commissioner to institute a rulemaking procedure to promulgate rules specifying which activities are included in the Lobbying Act’s definition of lobbying. Additionally, Common Cause sought a declaration that the Commissioner had violated the mandatory duty imposed on him by § 5-7-111, MCA, to “promulgate and publish rules necessary to carry out the provisions of [the Lobbying Act] ....” The Commissioner moved to dismiss pursuant to Rule 12(b)(6), M.R.Civ.P., and the District Court granted his motion. Common Cause appeals.
DISCUSSION
A complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief. Lockwood v. W.R. Grace & Co. (1995), 272 Mont. 202, 207, 900 P.2d 314, 317.
Amotion to dismiss under Rule 12(b)(6), M.R.Civ.P., has the effect of admitting all well-pleaded allegations in the complaint. In considering the motion, the complaint is construed in the light most favorable to the plaintiff, and all allegations of fact contained therein are taken as true.
Lockwood, 900 P.2d at 317 (quoting Boreen v. Christensen (1994), 267 Mont. 405, 408, 884 P.2d 761, 762). The determination that a complaint fails to state a claim upon which relief can be granted is a conclusion of law. We review a district court’s conclusions of law to determine whether the court’s interpretation of the law is correct. Lockwood, 900 P.2d at 317.
We have stated that we do not favor the short circuiting of litigation at the initial pleading stage unless a complaint does not state a cause of action under any set of facts. Tobacco River Lumber Co. v. Yoppe (1978), 176 Mont. 267, 271, 577 P.2d 855, 857. “This is especially true when the cause of action is based upon a statute that has not been previously interpreted and where no underlying factual record has been developed.” Smith v. Video Lottery Consultants, Inc. (1993), 260 Mont. 54, 57-58, 858 P.2d 11, 13. In the present case, the section of the Lobbying Act in question, § 5-7-111, MCA, has not previously been interpreted by this Court.
Resolution of this appeal hinges upon the interpretation of two statutory provisions: Section 5-7-111, MCA, and § 2-4-315, MCA. Section 5-7-111, MCA, provides as follows:
Commissioner to make rules. (1) The commissioner shall promulgate and publish rules necessary to carry out the provisions of this chapter in conformance with the Montana Administrative Procedure Act and, in particular, shall provide rules necessary to allocate salary, expenses, and any other payments between lobbying activities and other activities not connected with lobbying for any person whose activities are not solely limited to lobbying.
(2) Such rules shall be designed to effect and promote the purposes of this chapter, express or implied. Such rules shall be as simple and easily complied with as possible.
Common Cause argues that this statute mandates that the Commissioner “shall” publish rules necessary to carry out the provisions of the Lobbying Act and that the “necessity” is established by the well-pleaded, undisputed allegations of its complaint. Common Cause argues that § 5-7-111, MCA, creates a clear legal duty, the violation of which warrants the issuance of a writ of mandamus. The Commissioner focuses on the fact that he only has a duty to promulgate rules necessary to carry out the provisions of the chapter “in conformance with the Montana Administrative Procedure Act” (MAPA). He argues that MAPA, § 2-4-315, MCA, gives him discretion to determine whether the rule propounded by Common Cause is “necessary” or whether any rules are necessary. Section 2-4-315, MCA, provides as follows:
Petition for adoption, amendment, or repeal of rules. An interested person or, when the legislature is not in session, a member of the legislature on behalf of an interested person may petition an agency requesting the promulgation, amendment, or repeal of a rule. ... Within 60 days after submission of a petition, the agency either shall deny the petition in writing (stating its reasons for the denial) or shall initiate rulemaking proceedings in accordance with 2-4-302 through 2-4-305.
The Commissioner contends that he was within his discretion under the above statute when, within 60 days after receiving Common Cause’s petition for rulemaking, he concluded that the rule proposed by Common Cause would impermissibly alter the statutory definition of the term “lobbying” enacted by the Montana legislature, and thus he denied the petition. He then contends that a writ of mandamus is not available to compel the exercise of a discretionary act.
The District Court concluded that under § 2-4-315, MCA, the Commissioner had discretion to determine which rules are “necessary” and appropriate; that the Commissioner was within his discretion in denying Common Cause’s petition; and that the court could not issue a writ of mandate to compel the Commissioner to promulgate any specific rule.
The Commissioner held, and the District Court agreed, that the Commissioner had discretion to either deny the petition or initiate rulemaking proceedings. This conclusion was based upon the court’s interpretation of § 2-4-315, MCA. We review that conclusion of law to determine whether or not it is correct. Carbon County v. Union Reserve Coal Co., Inc. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.
1. Does § 2-4-315, MCA, grantthe Commissioner discretion to deny a petition for mandatory rulemaking under § 5-7-111, MCA, without first initiating rulemaking proceedings?
Section 2-4-315, MCA, provides that an interested person “may petition an agency requesting the promulgation, amendment, or repeal of a rule. ...” It farther provides that, “[w]ithin 60 days after submission of a petition, the agency either shall deny the petition in writing (stating its reasons for the denial) or shall initiate rulemaking proceedings in accordance with 2-4-302 through 2-4-305.” Implicit in the District Court’s ruling is the reasoning that § 2-4-315, MCA, addresses petitions for the promulgation of “a rule,” and since Common Cause’s Petition proposed a specific rule, the statutory discretion to deny the petition was triggered without any need for a rulemaking proceeding. We determine that, although § 2-4-315, MCA, does grant the Commissioner discretion to deny a petition in so far as it relates to a proposed rule, it does not grant the Commissioner that same discretion with regard to a broader request that the Commissioner engage in mandatory rulemaking to determine whether any rules, whether proposed by a petitioner or not, are necessary.
Although Common Cause’s petition does set forth a specific rule for consideration, that rule is nothing more than a proposal. We do not read Common Cause’s petition as solely requesting the adoption of a specific rule — rather, the petition merely proposes a rule in the context of its request that the Commissioner initiate rulemaking to determine the necessity of rules in general. Under the Administrative Rules of Montana, a petition for rulemaking must include “the rule the petitioner requests the agency to promulgate, amend or repeal.” Mont. Admin. R. 1-3-205(a)(iii). In order to comply with the prerequisites of MAPA, Common Cause had to submit a proposed rule. However, that did not mean that the scope of rules the Commissioner could consider was thereby limited to the proposed rule. The proposed rule was nothing more than a model or point of departure. N.A.A.C.P. v. Federal Power Comm’n (D.C.Cir. 1975), 520 F.2d 432, 434, aff’d, 425 U.S. 662, 96 S.Ct. 1806, 48 L.Ed.2d 284 (1976).
Both the Commissioner and District Court erred in assuming that the only matter presented by the petition was the proposed rule. In addition to setting forth a proposed rule, the administrative petition clearly asks the Commissioner to initiate a rulemaking proceeding, pursuant to § 5-7-111, MCA. Likewise, in its application for preliminary writ of mandamus and complaint for declaratory relief in District Court, Common Cause seeks to compel the Commissioner to initiate rulemaking proceedings. It does not seek to compel the adoption of any specific rule proposed by Common Cause. We hold that although § 2-4-315, MCA, grants the Commissioner the discretion to deny the petition in so far as it pertains to a proposed rule, there is no such discretion to summarily deny a petition which seeks to invoke the Commissioner’s legal obligation to engage in mandatory rulemaking under § 5-7-111, MCA.
In Common Cause v. Federal Election Comm. (D.D.C. 1987), 692 F. Supp. 1391, Common Cause challenged the Federal Election Committee’s (the Commission) decision to deny a petition for rulemaking associated with the use of “soft money” in connection with federal elections. The court held that any improper allocation of non-federal funds by a state committee would be a violation of the Federal Elections Campaigns Act (FECA), 2 U.S.C. § 431, et seq. “Yet, the Commission provides no guidance whatsoever on what allocation methods a state or local committee may use; the potential for abuse, intended orno, is obvious.” Common Cause, 692 F. Supp. at 1396. The court determined that when the agency denies rulemaking in a way that “flatly contradicts Congress’s express purpose, the court may— indeed must — intervene and correct the agency.” Common Cause, 692 F. Supp. at 1396 (citations omitted). Although recognizing that a revision of the Commission’s regulations was warranted, the court noted that Common Cause’s proposals did not limit or define the scope of the Commission’s consideration. The court stated:
However, the court need not go so far as to order the Commission to adopt the proposals of Common Cause, which appear to go beyond what the FECA requires in this area. Instead, the court need only require the Commission to review Common Cause’s Petition for Rulemaking in light of this opinion, with an eye to revising 11 C.F.R. §§ 102.5 and 106.1, as they relate to the portions of the 1979 FECA amendments discussed above.
Common Cause, 692 F. Supp. at 1396.
Similarly, although the Commissioner of Political Practices is under no compulsion to adopt the rules proposed by Common Cause, he cannot refuse to adopt any rules without first having engaged in a rulemaking procedure to determine whether any rules are “necessary.”
2. Is Mandamus an appropriate remedy?
The issuance or denial or a writ of mandate calls for a conclusion of law which we review to determine if it is correct. Franchi v. County of Jefferson (1995), [274 Mont. 272], 908 P.2d 210, 212; Becky v. Butte-Silver Bow Sch. Dist. 1 (1995), [274 Mont. 131], 906 P.2d 193, 195. Pursuant to § 27-26-102, MCA, a two-part standard applies to the issuance of a writ of mandate. Franchi, 908 P.2d at 212; State ex rel. Chisholm v. District Court (1986), 224 Mont. 441, 443, 731 P.2d 324, 325. First, the writ is available when the party requesting it is entitled to the performance of a clear legal duty by the party against whom the writ is sought. Becky, 906 P.2d at 195. Second, if there is a clear legal duty, the district court must grant the writ if there is no plain, speedy, and adequate remedy available in the ordinary course of law. Franchi, 908 P.2d at 212; State ex rel. Cobbs v. Montana Dep’t of Social and Rehabilitative Servs. (1995), [274 Mont. 157], 906 P.2d 204, 206; § 27-26-102(2), MCA. In Chisholm, we clarified the inquiry: “A negative answer to the first question bars the issuance of the writ, and, irrespective of the answer to that question, an affirmative answer to the second, divests the court of authority to issue it.” Chisholm, 731 P.2d at 325.
Regarding the first standard for mandamus, does the Commissioner have a clear legal duty to initiate rulemaking, the Commissioner contends that it is within his discretion to determine what rules are “necessary” as that term is used in § 5-7-111, MCA. We do not interpret the Commissioner’s discretion that broadly. The “as necessary” language of § 5-7-111, MCA, does not give the Commissioner discretion to ignore the initial mandate that he “shall” adopt rules. He cannot choose to take no action without first holding a hearing to determine whether rules are necessary. In Commonwealth of Pennsylvania v. National Ass’n of Flood Insurers (3d Cir. 1975), 520 F.2d 11, the Third Circuit Court addressed a similar issue. The State of Pennsylvania, on behalf of its citizens, sued the flood insurers and the Secretary of Housing and Urban Development for mandamus and injunctive relief for their failure to publicize the availability of flood insurance prior to the floods in question. As in the case sub judice, the district court dismissed the complaint and the plaintiff appealed. The federal law required that:
The Secretary shall from time to time take such action as may be necessary in order to make information and data available to the public and to any state or local agency or official, with regard to (1) the flood insurance program, its coverage and objectives. ...
Commonwealth, 520 F.2d at 26 (citing 42 U.S.C. § 4020). This statute, like the Montana statute presently at issue, contains the mandatory “shall” followed by the “as necessary” language. In interpreting the federal law, the Third Circuit held:
These paragraphs [42 U.S.C. § 4020], when read together, set forth a sufficient allegation which, if proved, warrants mandamus relief. ... Although § 4020 does contain language of discretion normally not subject to review under a petition for mandamus, the discretion authorized pertains only to the time and manner of acting. Specifically, the provision mandates that “the Secretary shall... take such action as may be necessary ...”
Commonwealth, 520 F.2d at 26 (emphasis added, citation omitted).
As to the significance of the phrase “as may be necessary,” the court stated:
The inclusion of the phrase “as may be necessary’ does not permit disobedience to the initial directive, implicit in the statutory framework, requiring the Secretary to first consider whether or not action should be taken.
Commonwealth, 520 F.2d at 26 (citations omitted).
In holding that mandamus was appropriate, the Third Circuit concluded that, although the Secretary had the final decision as to whether action was required, he could not make that decision without first weighing the considerations.
It is sufficient if the Secretary, having considered whether action should be taken, then determines that no action is necessary. But the Secretary cannot avoid taking the first step of evaluating the necessity of disseminating information. It is that step to which the Commonwealth has, in part, addressed its complaint. It is only at a hearing that the facts bearing upon this allegation may be developed. Accordingly, mandamus may issue to require the exercise of permissible discretion,... although the manner in which the discretionary act is to be performed is not to be directed by the Court.
Commonwealth, 520 F.2d at 26-27 (citation omitted).
We adopt a similar analysis in the context of the Lobbying Act. Although § 5-7-111, MCA, requires the Commissioner to adopt rules “as necessary,” that discretionary phrase does not permit the Commissioner to circumvent the initial directive that he “shall” adopt rules. The Commissioner has the ultimate discretion to determine what, if any, rules are necessary. He cannot, however, in the face of a petition alleging the necessity for rules, deny the petition without first conducting a hearing as to the question of necessity, this is his clear legal duty.
Assuming the truth of the allegations in Common Cause’s complaint, it has established that the Commissioner has a clear legal duty to engage in rulemaking. The question then becomes, does Common Cause have a plain, speedy, and adequate remedy in the ordinary course of law? Chisholm, 731 P.2d at 325. A review of MAPA reveals that there is no provision for appeal from, or judicial review of, the Commissioner’s decision to not initiate rulemaking under § 5-7-111, MCA. Thus Common Cause has no plain, speedy and adequate remedy in the ordinary course of law.
Common Cause’s complaint sets forth sufficient allegations which, if proven, warrant mandamus relief. See Carpet, Linoleum & Resilient Tile, Etc. v. Brown (10th Cir. 1981), 656 F.2d 564, 568, (citing Commonwealth, 520 F.2d at 26-27). We hold that mandamus can lie to compel the Commissioner to conduct rulemaking procedures before he makes his decision as to whether new or additional rules are necessary. The District Court erred in dismissing Common Cause’s complaint, thus, we reverse and remand the matter for further proceedings consistent with this opinion.
JUSTICES NELSON, HUNT and TRIEWEILER concur.
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DECISION
The application of the above-named defendant for a review of the sentence of five years for Grand Larceny imposed on June 30, 1969, was. fully heard and after a careful consideration of the entire matter it is:;decided that:
The sentence be and remain as originally imposed.
Despite contention that the sentencing judge did not adequately consider this case, that the property stolen was returned, and defendant’s wife and child need his assistance,: we are unable to- say in the face of the presumption that the sentencing judge was correct in his determination, that this sentence is not proper, reasonable, and sufficiently lenient, the crime, the individual and the, sentencing goals kept in mind, perticularly when it is considered that the crime involved is punishable by imprisonment up to 14 years, and that the defendant has two prior felony convictions, which, if used against him, would have resulted in imprisonment for not less than 10 years, and, conceivably, even in imprisonment for life or years without limit. Further, defendant is presently eligible for parole consideration in June, 1970, after being received July 2, 1969.
We thank R. J. Andriolo, Esq., for his assistance to the Court and to the defendant.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack- D. Shanstrom.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
Tammy Swoboda (Swoboda) appeals from her sentence imposed by the Yellowstone County, Thirteenth Judicial District Court. Swoboda pled guilty to the crime of sexual abuse of children, a felony. The court committed Swoboda to the Department of Corrections and Human Services for fifteen years. We affirm.
The issue on appeal is as follows:
Did the District Court abuse its discretion when it failed to consider and discuss alternatives to imprisonment for a nonviolent felony offense pursuant to §§ 46-18-225, and 46-18-201(11)[for- merly(lO)], MCA, before sentencing Swoboda to a term of imprisonment?
We review a sentence on appeal to determine whether the sentencing court clearly abused its discretion in imposing sentence. State v. Blake (1995), 274 Mont. 349, 350, 908 P.2d 676, 677; State v. Beach (1985), 217 Mont. 132, 153, 705 P.2d 94, 107. Criminal sentencing alternatives are strictly a matter of statute in Montana. State v. LaMere (1995), 272 Mont. 355, 358, 900 P.2d 926, 928; State v. Stevens (1993), 259 Mont. 114, 115, 854 P.2d 336, 337. Therefore, our standard of review is whether the District Court correctly interpreted the applicable statutes. LaMere, 900 P.2d at 928.
Swoboda qualified as a nonviolent felony offender. She argues that Montana law, § 46-18-201(11), MCA, requires the sentencing court to consider alternatives to incarceration, including the ten sentencing criteria found in § 46-18-225, MCA, when sentencing nonviolent offenders. If the court does not select alternatives to imprisonment it must state its reasons for not doing so. Section 46-18-201(11), MCA. Swoboda argues that the court failed to fulfill, this statutory requirement.
In three recent cases in which district courts failed to consider alternatives to incarceration for nonviolent offenders, we remanded for resentencing. State v. Pence (1995), 273 Mont. 223, 902 P.2d 41; LaMere, 900 P.2d 926; Stevens, 854 P.2d 336. However, in these cases the defendants raised the issue of consideration of alternatives to incarceration before the district court, or, as in Stevens, the State conceded that the statute had not been followed. Stevens, 854 P.2d at 337; see also State v. Nelson (1995), 274 Mont. 11, 906 P.2d 663.
However, in the instant case, the issue of consideration of alternatives to imprisonment was not raised before the District Court and the State did not concede that the statute had not been followed. The transcript of the sentencing hearing reveals that Swoboda did not object to the court’s failure to consider sentencing alternatives nor did she request reconsideration. Swoboda did not alert the District Court to the alleged failure to consider alternatives to imprisonment. Nelson, 906 P.2d at 667. Thus, the court was not able to correct any deficiency in the sentencing process. Nelson, 906 P.2d at 667.
This Court does not review issues which were not preserved for appeal in the court below. Sections 46-20-205 and 46-20-701, MCA. We have held that failure to raise an issue before the district court bars a defendant from raising the issue on appeal under § 46-20-104, MCA. Nelson, 906 P.2d at 667; State v. Arlington (1994), 265 Mont. 127, 151, 875 P.2d 307, 321.
An exception to this general rule is found in the holdings of State v. Hatfield (1993), 256 Mont. 340, 846 P.2d 1025 and State v. Lenihan (1979), 184 Mont. 338, 602 P.2d 997. See also Nelson, 906 P.2d at 667. In those cases we held that an appellate court may review any sentence imposed in a criminal case, if it is alleged that such sentence is illegal or exceeds statutory mandates, even if no objection is made at the time of sentencing. Hatfield, 846 P.2d at 1029; Lenihan, 602 P.2d at 1000.
Both Hatfield and Lenihan involved situations where the judgment was void due to lack of statutory authority. In Hatfield and Lenihan, the district courts’ sentences were illegal or in excess of statutory authority because the courts lacked the specific statutory authority to impose the sentence. See Nelson, 906 P.2d at 668. Unlike Hatfield and Lenihan, Swoboda’s sentence is neither illegal nor does it exceed statutory authority.
Swoboda was sentenced to fifteen years with the Department of Corrections and Human Services for the offense of sexual abuse of children, a felony, in violation of § 45-5-625, MCA. When Swoboda was sentenced, a person convicted of this offense could be punished by imprisonment for a term not to exceed 50 years or fined not more than $10,000, or both. Section 45-5-625(2)(b), MCA(1993). Swoboda’s fifteen-year sentence is thus neither illegal nor in excess of the statutory mandates.
Additionally, §§ 46-18-201(11) and 46-18-225, MCA, do not preclude a court from sentencing a nonviolent felony offender to prison. Nelson, 906 P.2d at 668. Section 46-18-225, MCA, states: “Prior to sentencing a nonviolent felony offender to a term of imprisonment ...” the court shall take into account certain criteria (emphasis added). Section 46-18-201(11) states: “If the offender is subsequently sentenced to the state prison ...” the court shall state why alternatives to imprisonment were not selected (emphasis added). Although these statutes require consideration of alternatives to imprisonment, such consideration would not have necessarily changed the court’s final sentence for Swoboda.
Finally, Swoboda argues that the District Court violated Swoboda’s rights of due process by not considering alternatives to imprisonment. Therefore, Swoboda alleges, even though she did not object to the District Court’s failure to consider alternatives to imprisonment, we should review her sentencing under the “plain error” exception to § 46-20-104, MCA. Section 46-20-104(2), MCA, provides:
Upon appeal from a judgment, the court may review the verdict or decision and any alleged error objected to which involves the merits or necessarily affects the judgment. Failure to make a timely objection during trial constitutes a waiver of the objection except as provided in 46-20-701(2).
The exceptions provided in § 46-20-701(2) , MCA, are as follows:
Any error, defect, irregularity, or variance which does not affect substantial rights shall be disregarded. No claim alleging an error affecting jurisdictional or constitutional rights may be noticed on appeal, if the alleged error was not objected to as provided in 46-20-104, unless the defendant [convicted person] establishes that the error was prejudicial as to his guilt or punishment and that:
(a) the right asserted in the claim did not exist at the time of the trial and has been determined to be retroactive in its application;
(b) the prosecutor, the judge, or a law enforcement agency suppressed evidence from the defendant [convicted person] or his attorney that prevented the claim from being raised and disposed of; or
(c) material and controlling facts upon which the claim is predicated were not known to the defendant [convicted person] or his attorney and could not have been ascertained by the exercise of reasonable diligence.
Swoboda does not argue that any of exceptions provided by subsections (a), (b), or (c), are present. Rather, Swoboda’s contention concerning these exceptions is limited to the following argument:
The legislature has provided a process which a sentencing court must follow prior to determining whether a person convicted of a crime should be imprisoned. § 46-18-201 and § 46-18-225. In the instant case, the sentencing court did not consider the sentencing statutes in violation of Swoboda’s due process rights. Such a due process violation is manifestly unjust. Consequently, Swoboda asks this court to find that the sentencing court abused its discretion when it failed to comply with Swoboda’s due process rights prior to passing sentence.
Swoboda’s failure to discuss the provisions of § 46-20-701(2)(a)(b) and (c) defeats any application of the statutory exceptions in this case.
Nonetheless, we recently held that the doctrine of common law plain error review can continue to survive despite the existence of Montana’s plain error statute. State v. Finley (1996), [276 Mont. _], 915 P.2d 208. In Finley, we discussed the background and application of the common law doctrine of plain error as well as the statutory requirements of § 46-70-701(2), MCA, in Montana. In Finley, we articulated an understandable rationale and rule concerning plain error. Finley, 915 P.2d at 215. In Finley, we held:
this Court may discretionarily review claimed errors that implicate a criminal defendant’s fundamental constitutional rights, even if no contemporaneous objection is made and notwithstanding the inapplicability of the § 46-20-701(2), MCA, criteria, where failing to review the claimed error at issue may result in a manifest miscarriage of justice, may leave unsettled the question of the fundamental fairness of the trial or proceedings, or may compromise the integrity of the judicial process.
Finley, at 215.
Here, our refusal to review the District Court’s failure to consider alternative to imprisonment does not rise to the level of a manifest miscarriage of justice, will not leave unsettled the question of the fundamental fairness of the trial or proceedings, nor will it compromise the integrity of the judicial process. Finley, 53 St.Rep. at 315. As stated earlier, Swoboda’s sentence is neither illegal nor in excess of the statutory mandates. Under §§ 46-18-201(11) and 46-18-225, MCA, the District Court was not precluded from sentencing a nonviolent felony offender to prison. Nelson, 906 P.2d at 668. Although these statutes require consideration of alternatives to imprisonment, such consideration would not have necessarily changed the court’s final sentence for Swoboda. Thus, we decline to review this unobjected-to error by the District Court under the plain error doctrine as articulated in Finley.
We do, however, restate our caution from Nelson:
Prior to sentencing a nonviolent felony offender to imprisonment, the court must examine and take into account the ten specific criteria set forth in § 46-18-225, MCA.
Section 225 requites consideration of such things as where the needs of the offender would be best served. These statutes do not provide the court with any discretion. The legislature has directed trial courts to make these considerations before any nonviolent offender is incarcerated.
LaMere, 900 P.2d at 928 (emphasis added). Explicit, rather than implicit consideration of the criteria makes for a much more meaningful appellate review. In future cases, we strongly encourage district courts, in imposing sentence upon nonviolent offenders, to specifically recognize and address the criteria set forth in § 46-18-225, MCA.
Nelson, 906 P.2d at 668. Notwithstanding our recognition of the importance of trial courts specifically addressing the criteria set forth in § 46-18-225, MCA, Swoboda, having failed to object to the sentence or to move for reconsideration, is barred from raising the issue of consideration of alternatives on appeal. Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, NELSON and TRIEWEILER concur.
Except for the “[convicted person]” language, this 1995 version of the statute is identical to the 1993 version in effect at the time of Swoboda’s sentencing.
|
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JUSTICE NELSON
delivered the Opinion of the Court.
Big Sky Hidden Village Owners Association (Big Sky) appeals from a judgment and memorandum and order entered by the Eighteenth Judicial District Court, Gallatin County granting Hidden Village, Inc.’s (HVI) motion for partial summary judgment, denying Big Sky’s motion for partial summary judgment, and denying HVI’s motion to strike. We affirm.
ISSUES
1. Whether real property adjacent to a condominium development, which was never submitted to Montana’s Unit Ownership Act by description on the condominium declaration or amendment thereto, is subject to the act and the declaration.
2. Whether the owner of real property adjacent to a condominium development may use the roads running through the condominium property to access the adjacent land.
3. Whether the owner of real property adjacent to a condominium development may use the water and sewer mains running through the condominium property to serve the adjacent land.
BACKGROUND
On December 15, 1980, the Gallatin Comity Board of County Commissioners approved Big Sky Camper Village Inc.’s preliminary application for a planned unit development (PUD) located on the site of the existing Big Sky Camper Village for the construction of a maximum of 198 condominium units. The proposed development consisted of 37.8 acres located approximately one and one-half miles west of Meadow Village. Those 37.8 acres encompass the Big Sky Hidden Village Condominium and HVI’s remaining property. The findings of fact and order approving the PUD did not restrict where on the 37.8 acres the 198 units were to be placed. The findings of fact and order approving the PUD stated that “adequate acceés to all units should be provided even though the roads will be private ones,” and ordered that “the roads are the responsibility of the developer until they are turned over to the Property Owner’s Association and that the roads will be private roads, for which the County will have no responsibility.” The Gallatin County Board of County Commissioners’ order further stated that “water supply and sewage disposal will be handled by existing central systems.” The rural improvement district agreed to provide sewage collection and disposal to the 198 condominium units. Additionally, Lone Mountain Springs, Inc., agreed to provide domestic water to the 198 condominium units.
Pursuant to § 70-23-103, MCA, Big Sky Camper Village, Inc., filed the declaration and by-laws for the Big Sky Hidden Village Condominium. The declaration provides in pertinent part:
Declarant reserves the right from time to time (but on or before 10 years from the date of the initial recording of this Declaration) to expand the number of units to be included in this condominium by subjecting the condominium site plan as shown in Exhibit “C” to the construction of additional units, and to provide for up to 198 additional units for an over-all total of 198 units of one, two, or three bedroom units.
The declaration submitted Tract I-A to the Condominium Act and has at various times submitted additional lands contained within certificate of survey 1605 (COS 1605). Specifically, the original declaration describes the real property submitted by the declaration and subject to the Montana Unit Ownership Act as
Tract I-A of the Condominium Subdivision known as Hidden Village Condominium recorded on _, 1980, in Book _ of Plats at Page _, Gallatin County, Montana and situated within the SW 1/4 of Section 35, Township 6 South, Range 3 East, M.P.M., Gallatin County, Montana.
Tract I-A does not include the entire area covered by COS 1605. Although the land in dispute in the instant case is neither part of Tract I-Anor has been submitted as an amendment to the declaration, it is included within the description of the PUD.
HVI is the successor in interest to Camper Village, the original declarant/developer. Of the approved 198 units, 141 have been constructed as Big Sky Hidden Village Condominiums. When HVI conveyed the condominium units, it did not reserve any easement, right of access, or right of use for the roads, water lines, or sewer lines. However, the roads and the sewer and water lines cross HVI’s property in order to reach the Big Sky Hidden Village Condominium. The land included in COS 1605 but not included in the declaration belongs to HVI. This remaining land surrounds the Big Sky Hidden Village Condominium on three sides. See diagram.
On April 2, 1991, HVI applied to the Department of Health and Environmental Sciences, Lone Mountain Springs, and Rural Improvement District #305 for approval of 57 additional units. Big Sky then filed suit in the Eighteenth Judicial District Court, Gallatin County, seeking a declaratory judgment that the land within COS 1605 is subject to the declaration, that the roads within the Condominium are private and not available for public use, and that the water and sewer systems are the property of the unit owners and cannot be expanded without their permission. HVI moved for partial summary judgment, seeking a declaratory judgment that the real property owned by HVI within COS 1605 is not subject to the Big Sky Hidden Village Condominium declaration or bylaws. On June 15, 1994, the District Court granted HVTs motion, stating that HVTs property within COS 1605 is not subject to the Big Sky Hidden Village Condominium declaration or bylaws.
On June 30, 1994, Big Sky moved for partial summary judgment on the remaining issues. In its March 31, 1995 memorandum and order, the District Court denied Big Sky’s motion ruling that the roads, while private, are not the exclusive property of Big Sky or its members; that the roads are a public right-of-way for all purposes other than maintenance; that HVI has the right to use the roads for ingress and egress to its property because it has acquired easements by implication and necessity; and that HVI has the right to use the water and sewer systems. On April 14, 1995, Big Sky filed its notice of appeal from the District Court’s judgment and memorandum and order granting HVI’s cross motion for partial summary judgment.
HVI filed in this Court a motion to dismiss the appeal arguing that neither District Court order is reviewable because there were multiple claims and because the orders were not final. Citing Hennen v. Omega Enterprises, Inc. (1994), 264 Mont. 505, 507-08, 872 P.2d 797, 799, we held in a June 1, 1995 order that the District Court’s March 1995 order is appealable under Rule 1(b)(2), M.R.App.P., because it was a denial of injunctive relief and that the June 15,1994 judgment is appealable because it is an intermediate order or decision.
STANDARD OF REVIEW
We review a grant of summary judgment de novo using the same criteria initially used by the District Court under Rule 56, M.R.Civ.P. Mead v. M.S.B., Inc. (1994), 264 Mont. 465, 470, 872 P.2d 782, 785. Therefore, we determine whether there is an absence of genuine issues of material fact and whether the moving party is entitled to judgment as a matter of law. Mead, 872 P.2d at 785.
DISCUSSION
1. Whether real property adjacent to a condominium development, which was never submitted to Montana’s Unit Ownership Act by description on the condominium declaration or amendment thereto, is subject to the act and the declaration.
Big Sky claims that the District Court erred in finding that the land owned by HVI is not subject to the Big Sky Hidden Village Condominium declaration or bylaws, and thus is not subject to Montana’s Unit Ownership Act, Title 70, chapter 23, MCA. HVI argues that the District Court correctly determined that the ten-year time limit in the declaration only applies to land included in that declaration or added by amendment thereto and does not limit HVI's right to develop its remaining land.
Section 70-23-103, MCA, sets forth the applicability of the Unit Ownership Act establishing a condominium as follows:
Applicability — submission by declaration required. In order to submit any property to the provisions of this chapter, the sole owner or sole lessee or all of the owners or all of the lessees thereof shall execute, acknowledge, and record a declaration in the office of the recording officer of the county in which the property is located. The declaration shall be executed in accordance with 70-23-301.
Section 70-23-102(6), MCA, provides that a declaration is the instrument by which property is submitted to the provisions of the Unit Ownership Act. Actual filing of the declaration is the action “which subjects the property in question to the provisions of the act.” Jordan v. Elizabethan Manor (1979), 181 Mont. 424, 430, 593 P.2d 1049, 1053. A declaration shall contain among other things “a description of the land, whether leased or in fee simple, on which the building is or is to be located.” Section 70-23-301, MCA. A certificate of survey, on the other hand, is not a declaration and does not submit land to the Unit Ownership Act.
Accordingly, the declaration for the Big Sky Hidden Village Condominium and not COS 1605 determines the land subject to the provisions of the Unit Ownership Act. Specifically, the original declaration included only Tract I-A. Subsequent amendments to the declaration included Tracts I-XI and the Recreation Tract. Big Sky concedes that if the property in question is not on Big Sky Hidden Village Condominium land, then it is not subject to the declaration.
However, Big Sky argues that the description of property in the original declaration is incomplete and therefore COS 1605 properly determines the property included in the Big Sky Hidden Village Condominium. While section II of the declaration broadly states that the property included in the Condominium is located in “the SW 1/4 of Section 35, Township 6 South, Range 3 East, M.P.M, Gallatin County, Montana,” the original site plan (Exhibit B), incorporated within the original declaration and recorded with it, specifically includes a metes and bounds description of the property submitted to the act. Similar site plans were submitted with each amendment to the declaration. Therefore, the declaration contained a complete and specific description of the property.
HVI argues that the ten-year limitation contained in the declaration only governs the addition of units to the Big Sky Hidden Village Condominium, not development of land outside the Condominium. HVI further argues that the term “expansion” in the declaration refers to the addition of units or land to the Condominium and not to other property owned by HVI. Moreover, HVI notes that the ownership and voting section of the declaration states that “[t]he Hidden Village Condominium consists of the real property described above ....” Exhibit C to the declaration shows “the proposed or projected location of the additional buildings and lands which may be added by the declarant.” Therefore, for other land to be included within the Condominium, it would have to be added by amendment. Because the amendments to the declaration do not include HVI’s land in question, HVI argues that the land is not part of the Condominium.
There are no provisions within the declaration that purport to prevent HVI from developing land not placed within the Big Sky Hidden Village Condominium. The ten-year limitation in the declaration only governs the addition to units to the Big Sky Hidden Village Condominium, not the separate development of HVI’s land outside the Condominium. Thus the term “expansion” and the limitation thereof, applies only to additional units to the Big Sky Hidden Village Condominium, not the separate construction of separate improvements on land owned by HVI outside the Condominium. The Gallatin Board of County Commissioners approved 198 units; Lone Mountain Springs agreed to provide service for 198 units, and RID 305 agreed to provide service for 198 units. The Gallatin County Clerk and Recorder has the declaration on file to give notice to any interested party exactly what land is included in the Big Sky Hidden Village Condominium. Accordingly, we hold that the District Court correctly found that HVI’s real property adj acent to the Big Sky Hidden Village Condominium was never submitted to Montana’s Unit Ownership Act by description on the Condominium declaration or amendment thereto.
2. Whether the owner of real property adjacent to a condominium development may use the roads running through the condominium property to access the adjacent land.
Big Sky contends that the roads going through the Condominium are private and therefore HVI may not use them. HVI argues that the roads are public and in the alternative that HVI has an easement by implication and an easement by necessity to use the roads.
As early as 1973, what is now Big Sky Hidden Village Condominium and HVI’s remaining property was laced with a system of roads accommodating vehicles for use as an R.V. park. Therefore, in 1980, when Camper Village sought approval of the PUD, a series of roads already existed on the land to be developed. The roads extended through what is now HVI’s remaining property and what is now the Big Sky Hidden Village Condominium. Those roads which predated the PUD approval, the filing of the declaration, and the construction of the first condominium unit, are the same roads that continue to serve the Condominium and HVI’s land today. Additionally, in approving the PUD, the Gallatin County Board of County Commissioners found that “to preserve to the maximum extent possible the natural characteristics of the land .... adequate access to all units should be provided even though the roads will be private ones.”
Camper Village, Inc., and HVI developed the Big Sky Hidden Village Condominium in phases. Camper Village, Inc., initially submitted to the declaration Tract I-A comprised of a few acres and 14 units. Camper Village Inc., and HVI continued to develop the Condominium in phases, adding small parcels of land to the declaration. During this phased development, unit owners had to cross property owned by Camper Village or HVI to obtain access to their condominiums. Similarly, to obtain access to the remaining land to construct additional units, Camper Village and HVI used the existing roads that cross the property that is already part of the Condominium. Thus HVI claims that it had an easement by necessity allowing it to use the existing road system.
An easement by necessity is a subspecies of an easement by implication that arises through strict necessity for exit and access to a parcel of property. Graham v. Mack (1984), 216 Mont. 165, 175, 699 P.2d 590, 596; see also Schmid v. McDowell (1982), 199 Mont. 233, 237, 649 P.2d 431, 432. In Schmid, a property owner brought action against a neighboring property owner seeking a declaration of an easement by necessity. We defined an easement by necessity as follows:
[w]here an owner of land conveys a parcel thereof which has no outlet to a highway except over the remaining lands of the grantor or over the land of strangers, a way of necessity exists over the remaining lands of the grantor. Similarly, a way of necessity is found when the owner of lands retains the inner portion conveying to another the balance, across which he must go for exit and access.
Schmid, 649 P.2d at 433 (citations omitted); see also Peters v. Johnson (1983), 203 Mont. 120, 661 P.2d 24. Further, we distinguished an easement by necessity from other implied easements in noting an easement by necessity need not be in existence at the time of conveyance, but rather the conveyance gives rise to the easement. However, the tracts over which the easement is claimed must have had a common ownership or unity of title immediately prior to the severance giving rise to the necessity. Schmid, 649 P.2d at 433.
Subsequently in Graham, we set forth two basic elements of an easement by necessity: 1) unity of ownership, and 2) strict necessity at the time the unified tracts are separated. Graham, 699 P.2d at 596. In Graham, we held that no implied easement existed absent unified title of the property involved. We reiterated the strong public policy against shutting off a tract of land and thus rendering it unusable. “Where an owner of land conveys a parcel which has no outlet to a highway except over the remaining lands of the grantor or over the lands of strangers, a way of necessity exists over the remaining lands of the grantor.” Graham, 699 P.2d at 596 (quoting Schmid, 649 P.2d at 433). However, the way granted may not be over the land of a third party or stranger to the title. Graham, 699 P.2d at 596-97; see also Woods v. Houle (1988), 235 Mont. 158, 163, 766 P.2d 250, 253.
In Woods, the district court granted an easement by necessity. In reversing the district court, we held that the respondent was not able to meet the requirements of an easement by necessity as set forth in Graham. The easement by necessity did not give the respondent access to a public road but only to a third party’s land, and as we held in Graham, a way granted may not be on the land of a third party. Moreover, the respondent had an easement by prescription which is incompatible with an easement by necessity. Woods, 766 P.2d at 253.
In Smith v. Moran (1985), 215 Mont. 31, 38, 693 P.2d 1246, 1251, we considered the Gallatin County Subdivision Regulation 4.4.2, which provides that:
[w]hen a new subdivision adjoins unsubdivided land and reasonable access thereto must pass through the new subdivision, streets and rights of way shall be provided to allow suitable access to the unsubdivided land.
In Smith, there was evidence that plaintiffs had ample alternative access to their property, and there was no evidence to suggest that access across the subdivision was essential. We further noted that “any unique property interest in abutting landowners is limited to the right only to adequate access necessary to connect the landowner to the general street system.” Smith, 693 P.2d at 1251 (citing Wynia v. City of Great Falls (1979), 183 Mont. 458, 600 P.2d 802).
In the instant case, HVI meets both the unity of title requirement and the requirement of strict necessity at the time the unified tracts were separated. Camper Village, HVI’s predecessor, owned all of COS 1605 and conveyed part of that tract to the Big Sky unit owners. At the time Camper Village conveyed Tract I-Ato the Big Sky unit owners, submitting Tract I-Ato the declaration, the strict necessity of access and exit to the public roads arose. In his affidavit, Jack Schunke, an engineer, stated that if not afforded access across the existing roads, HVI will have great difficulty developing additional property, if it may do so at all. Moreover, he stated that the road some of the unit owners use to enter the Condominium crosses HVI’s land. Carlisle Neithold, president of HVI stated in his affidavit that HVI does not own abutting land outside COS 1605, and cannot obtain access to its remaining land without using the existing roadways. Thus there is evidence that HVI does not have ample alternative access to its property.
Big Sky’s argument that the ten-year limitation in the declaration precludes an easement by implication and by necessity because it negates the presumed intent to reserve easements and the necessity for those easements does not persuade us. As stated above, the ten-year limitation in the declaration only addresses HVI’s right to continue to add land or units to the Big Sky Hidden Village Condominium and does not address HVI’s right to use the roads.
Accordingly, the District Court correctly granted summary judgment in favor of HVI, determining that HVI has an easement by necessity. Because we hold that the District Court correctly granted summary judgment on the easement by necessity, we need not reach the issue of HVI’s alleged easement by implication.
3. Whether the owner of real property adjacent to a condominium development may use the water and sewer mains running through the condominium property to serve the adjacent land.
Big Sky contends that the sewer and water systems are common elements and therefore HVI has no right to use them. HVI concedes that the water and sewer systems may be common elements held by the condominium unit owners as tenants in common, but contends that Big Sky does not have exclusive ownership of the water and sewer systems. In fact, HVI argues that public utilities own the water and sewer systems, have the responsibility for maintaining the systems, and therefore have the exclusive right and duty to determine who hooks up to the systems.
In its definition section, the declaration includes water and sewer lines as general common elements. Section 70-23-102(8)(d), MCA, also includes water and waste disposal as general common elements. Section 70-23-404, MCA, explains the nature of the ownership interest in general common elements as follows:
The undivided interest in the common elements shall not be separated from the unit to which it appertains and shall be conveyed or encumbered with the unit even though such interest is not expressly mentioned or described in the conveyance or other instrument.
Consequently, each unit owner may use the common elements for their intended purposes. See § 70-23-503, MCA. The bylaws of a condominium provide for the maintenance, repair, and replacement of the common elements or the additions and improvements thereto. Section 70-23-504, MCA.
HVI argues that while the Condominium members may own the water and sewer lines, they do so as tenants in common and cannot preclude another party from a right to an easement to use the same common elements. In fact, HVI argues that Big Sky’s claim to exclusive use and ownership of the water and sewer lines contradicts the fact that Lone Mountain Springs and Water and Sewer District (WSD) #363 exercise the right to determine who hooks up to the respective systems and contradicts the approval of the PUD allowing HVI to obtain water and sewer service through the existing systems.
Prior to 1973, a developer installed the water distribution mains located within what is now Big Sky Hidden Village Condominium. When the Gallatin County Board of County Commissioners approved the PUD in 1980, the water distribution system consisting of a storage tank on the hill above the development and numerous water distribution mains and loops therefore already existed. Additionally, prior to 1972, a developer installed a series of sewer collection mains on the development. Rural Improvement District #305 obtained ownership of the sewer collection mains that transported waste water from the development to a treatment facility that it owned and operated.
After the PUD was approved, Camper Village, Inc. and HVI developed the Big Sky Hidden Village Condominium in phases. During the phased development, the unit owners had to use the water distribution mains and sewer collection mains passing underneath Camper Village, Inc. property. Similarly, when Camper Village, Inc. and HVI constructed units for inclusion into the Condominium, they hooked those units up to the existing water distribution and sewer collection mains running, in part, under the Condominium property.
Lone Mountain Springs owns the water tank and wells serving Big Sky Hidden Village Condominium and has repaired and maintained the lines servicing the Condominium. Two water sources serve the Big Sky Hidden Village Condominium, a well not far from the condominiums and a well that serves the Sweetgrass Hills Subdivision. Therefore, two water distribution mains enter the Condominium, one from the nearby well and one from the water system that serves the Sweetgrass Hills Subdivision. These mains intersect and travel to the water storage tank on Big Sky Lumber Company’s property. The Condominium derives water pressure and capacity from the water storage tank. That tank is crucial to Big Sky Hidden Village Condominium’s continued service. The water distribution mains that transport water through HVI’s property to the Condominium and on to a third party’s property existed before Camper Village bought the property it then conveyed to HVI and to the Condominium. Those same mains now transport water from a third party’s property, through HVI’s property, through the Condominium through HVI’s property and to the water storage tank.
Lone Mountain Springs has maintained and repaired the water system serving the Condominium. Big Sky does not pay for the repair and maintenance expenses to the water system. Lone Mountain Springs installed a telemetry system to regulate the flow of water into the storage tank to prevent the tank from overflowing or becoming empty. After a well had become contaminated, Lone Mountain Springs connected the water distribution pipes in the Big Sky Hidden Village condominium to the Sweetgrass Hills Subdivision water system.
Section 69-4-511(1), MCA, provides for the financial responsibility and liability for water service as follows:
A property owner is responsible for the costs of constructing privately supplied water service pipelines from the main to his premises and for maintaining service pipelines from his property line to his premises.
Big Sky Hidden Village Condominium did not construct the water lines on its premises or the lines from its premises to the main water lines, nor has it paid for the maintenance or repair of the water lines from its property line to its premises.
The sewer collection mains also pass through property owned by HVI, the Condominium and on to property owned by third parties. Originally, Rural Improvement District #305 serviced Camper Village Inc.’s property and then serviced both HVI’s and the Condominium’s property. Rural Improvement District #305 transferred its assets, debts, and liabilities to WSD #363; it included in the assets transferred existing sewer collection pipes serving the Big Sky Hidden Village Condominium. WSD #363 was organized by vote of the citizens of the Big Sky area. All of the sewer and waste water generated by the Big Sky Hidden Village Condominium flows into the sewer collection mains and sewage treatment facility owned by WSD #363.
RID #305 maintained the sewer collection system servicing the condominium. RID #305 hired a firm to conduct a video inspection of the sewer mains and hired an irrigation company to dig up and repair portions of the sewer mains serving the Condominium. WSD #363 has also maintained the lines within the Condominium and has given approvals and disapprovals for hook up of additional users within the Condominium. Therefore, WSD #363 clearly exercises indicia of ownership of the sewer lines in the Big Sky Hidden Village Condominium. WSD #363 agreed to provide service to all 198 units in the PUD. Consequently, the annual assessment HVI pays to Gallatin County includes payment to WSD #363.
The undisputed evidence contained in the affidavits indicates that Lone Mountain Springs and WSD #363 claim ownership of the systems they operate and maintain. The evidence of maintenance and repair substantiates that claim. To the contrary, although Big Sky Hidden Village Condominium claims ownership of the systems, it provides no evidence to support its claim. The Condominium failed to present a persuasive argument in its brief to support ownership of the water and sewer systems. Therefore, because WSD #363 owns the sewer system that services the Big Sky Hidden Village Condominium and Lone Mountain Springs owns the water system that services the Big Sky Hidden Village Condominium, the District Court correctly determined that Big Sky may not interfere with or control Lone Mountain Springs’ or WSD #363’s service and hook ups.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES ERDMANN, GRAY and HUNT concur.
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MB. CHIEF JUSTICE JAMES T. HAEBISON
delivered the Opinion- of the Court.
• Appeal from the district court of Flathead County following jury trial and entry of judgment sentencing defendant to a term of 10 years in the state prison. Defendant was charged with the crime of forcible rape of an adnlt female, not his wife, and on his appeal contends that the district court erred upon the trial and in denying certain motions made by defendant. Defendant made no statements nor did he take the stand in his own defense.
The essential facts disclosed by the evidence indicate that on the evening of January. 17, 1968 prosecutrix left her home at approximately 8:45 p.m., driving a 1960 Volkswagen, and went to a Kalispell bowling alley. After completing league bowling at approximately 12:15 a.m. January 18, prosecutrix left the bowling alley, walked to her car, and entered on the driver’s side. While attempting to start the car, she was accosted by a strange man, later identified as the defendant. Prosecutrix testified the defendant grabbed her by the throat, making it almost impossible to breathe, and literally picked her up and placed her in the passenger seat of the car. She immediately felt her life was in danger, and decided it would be best to cooperate. Defendant told her that he would let her go if she did exactly as she was told.
After a brief struggle, defendant released his grip on her throat and ordered prosecutrix to put her head between her legs. With defendant applying pressure to the back of her head with one hand, he started the Volkswagen, drove away from the bowling alley, and eventually headed west on U. S. Highway 2, toward Libby. During the journey defendant told prosecutrix “* * * to do as I was told, not to look up, because he would hate to beat me up or rough me up in any way. ’ ’
Some distance from Kalispell, defendant turned off the main highway and drove on a gravel road where he subsequently stopped the car and shut off the motor. After a short time, defendant ordered the prosecutrix into the back seat of the car where he disrobed her. Prosecutrix testified that while she did nothing to resist physically, she was continually in fear of her life. After defendant was partially undressed, the act of forcible rape was committed, without the consent of the prosecutrix.
After the act, prosecutrix testified she was afraid that defendant might make good an earlier • threat and kill her. She attempted to “pacify” him with conversation. Later defendant drove the car back to Kalispell where he parked it in front of the bowling alley. There defendant ordered the prosecutrix out of her car and into his, a Cadillac convertible parked nearby. Within, a few minutes, Kalispell police arrived at the scene. Testimony indicates that defendant' had aroused the suspicions of one 'of the officers earlier in the evening, consequently they had been keeping an eye on the defendant’s car, waiting for his return. For this reason the police approached defendant’s ear at-this particular time.
While asking defendant for identification the officer noticed that prosecutrix was crying. She was asked if there was anything wrong, to which she answered in the affirmative. As she was helped from defendant’s car, she was in a near-hysterical state and said she had been raped. The officers arrested defendant and took them both to the police station.
Prosecutrix early in the morning of January 18th was examined by a doctor whose speciality was obstetrics and gynecology. He .testified that when he first observed prosecutrix she was under considerable emotional strain, her eyes were swollen, she had been crying and her hair was messed up. The doctor made an examination of the prosecutrix’s neck and her pelvic area. In the pelvic region there were no- signs of trauma or bleeding and no sperm was found on microscopic examination, but a foreign piece of material was found in the vagina which the doctor sealed in a slide and marked for identification. Further, the doctor explained how intercourse could have been had without deposit of sperm. There were some contusions on her neck, indicating,,pressure marks or marks of force. From his examination of the patient and from a medical point of view the doctor stated he was satisfied that prosecutrix had been raped on that night. After the examination prosecutrix gave police officers a statement and was subsequently taken to the Flathead county jail where she identified defendant.
All' of the clothing that defendant- and prosecutrix were wearing' at the time of his arrest were sent to the F.B.I. laboratory. Analysis revealed that particles of the prosecutrix’s clothing were found on defendant’s clothing, and the foreign matter found in her vaginal vault was a fiber identical to the fibers on defendant’s sport coat.
Defendant, on advice of counsel, at .no time made a statement to any officer, nor did he testify in his own behalf at the trial. The jury returned a verdict of guilty, and this appeal followed.
In addition to the issue of whether the verdict was contrary to the law and the evidence, the defendant contends the district court erred in the following particulars:
(1) In giving instruction No. 23, and not giving defendant’s proposed instruction No. 10;
(2) In allowing testimony as to defendant’s action two nights prior to the commission of the crime;
(3) In not allowing testimony as to the demeanor of the prosecutrix at the time her deposition was taken, and
(4) In denying the following defense motions: (a) to dismiss at the close of the State’s ease in chief; (b) for a directed verdict at the close of all testimony, and (e) for a new trial.
Defendant alleges prejudicial error in the giving of instruction No. 23 on the ground the instruction amounted to an intimation to the jury that the impact of their verdict could be lessened by the court’s imposition of a light sentence. Instruction No. 23 as given by the court, was as follows:
“Under the laws of Montana, as applied to this ease, a person guilty of rape is punishable by imprisonment in the Montana State Prison for a term which must not be less than two years nor more than ninety-nine years, but may be for any specified term there-between. Further, the Court has the discretion of releasing the defendant on probation, deferring the imposition of sentence for a period not to exceed three years, suspend the execution, of the sentence up to the maximum sntence allowed for the particular offense or impose any combination thereof.
“ In the event you return a verdict of guilty of the crime of rape, the Judge must assess and declare the punishment.
“In the event you return a verdict of not guilty, the defendant must be released and discharged.”
Defendant argues this instruction prejudiced his right to an acquittal for the reason that those members of the jury who were disposed to vote him innocent could more easily be persuaded to change their position, knowing that a suspended or otherwise minimal sentence would result. With this contention we eannot agree.
Instructions are given to advise the jury on the applicable law. Here, the court informed the- jury of the possible punishment defendant might receive if he were found guilty and the discharge he would be entitled to if he were found innocent. In reviewing this instruction, it is found to be almost a verbatim statement of the law, (sections 94-4104; 95-2202, 95-2206, R.C. M.1947), and therefore there can be no argument that this instruction incorrectly stated the law in Montana. Nor can it be said the jury was misled by such an instruction.
When taken in conjunction with instruction No. 23, which instructed the jury on their sole duty — to find the defendant guilty or not guilty — the obligation of consideration of penalty was expressly reserved to the judge. This cannot be said to be improper.
Defendant also contends that in view of the fact the State notified defendant and his attorney of the intention to seek increased punishment .as a prior convicted felon under section 94-4713, R.C.M.1947, he was further prejudiced by the giving of instruction No. 23. This contention is wholly without merit. The State, pursuant to the provisions of section 95-1506, R.C.M.1947, properly gave notice of the intention to seek increased punishment. Under the provisions of section 95-1506(b),. R.C.M.1947, the notice and the charge of prior conviction “* # # shall not be made public nor in any manner be- made known to the jury before the jury’s verdict is returned * * *.” A careful review of the evidence in this case shows that the provisions of this section, as well as the provisions of section 94-4713, R.C.M.1947, were complied with. The -jury -was not id possession of the information relating to defendant’s prior conviction, and could not have been prejudiced thereby.
Further, defendant contends the district court erred by refusing to give defendant’s proposed instruction No. 10 as a statement of the law as enunciated by this Court in the case of State v. Needy, 43 Mont. 442, 117 P. 102. We agree that thé''instruction in question states the law applicable to the facts as set out in the Neddy -case, supra. However, we cannot -agree that' it states the correct application of the law under the -facts now before the Court.
Defendant’s proposed instruction No. 10 read ’as follows:
“You are instructed that while the prosecutrix may not have given ready consent to the act of intercourse, if she did not offer any physical resistance which required force to overcome, within the meaning of the statute, then there was no rápe.”
The law applicable to this case, properly set out in the information and in court’s instruction No. 2, is set oiit in section 94-4101, R.C.M.1947, as follows:
“Rape is an act of sexual intercourse, accomplished'with a female, not the wife of the perpetrator, under any of the'following circumstancess
“ (3) Where she resists, but her resistance is overcome by violence or force.
“(4) Where she is prevented from resisting by threats of immediate and great bodily harm,'' accompanied by apparent power of execution, or by. any intoxicating narcotic, or other anesthetic substance, administered by or with the privity of the accused.* * * (Emphasis added.)
The Needy case, supra, dealt 'totally with subsection (3), supra, to the exclusion of subsection (4), while the instant case is grounded principally on subsection (4), above quoted.
It is not essential that physical resistance be offered by the prosecutrix, although in this case she did offer some. Subsection (4) simply requires that there be threats of immediate and great bodily harm, accompanied by apparent power of execution. The transcript shows an over-abundance of such threats, along with defendant’s apparent ability to carry out his threats. Such ability is evidenced by defendant’s physical size and the .braises administered to the prosecutrix during the initial attack.
There can be no question that defendant has the right to have instructions given which state or explain the law applicable to his case. The defendant does not, however, have the right to an instruction which, to the exclusion of some elements of a crime, would mislead the jury to believe that constant physical resistance which required force, to overcome was an essential element. That is not the law as evidenced by subsection (4) of section 94-4101, supra. In view of the fact that a proper instruction was given, court’s instruction No. 2 which explained the law applicable to this ease, it was not error to refuse defendant’s proposed instruction No. 10.
Next, defendant alleges it was error to allow testimony of a police officer as to defendant’s action two nights prior to the commission of the crime charged. The statement made by the officer had no bearing on the basic issues involved in the trial of this case, but rather went to establish a basis upon which the officer was later able to identify the defendant on the evening of the crime. Nowhere has defendant shown that this was prejudicial. It seems idle to discuss this contention when defendant was arrested in company of the prosecutrix and she that same morning formally identified him.
However, prejudice in a criminal case will not be presumed but rather must appear from a denial or invasion of a substantial right from which the law imputes prejudice, State v. Schleining, 146 Mont. 1, 403 P.2d 625, and also, the defendant must demonstrate prejudice from the record. This defendant has failed to do.
Section 95-2425, R.C.M.1947, states that any error, defect, irregularity or variance which does not affect substantial rights shall be disregarded. As this Court, said in State v. Gallagher, 151 Mont. 501, 506, 445 P.2d 45:
“If there was any error at all it was merely technical, and there is a long standing rule in this jurisdiction [based on the present section 95-2425, .R.C.M.1947, and its predecessors] that technical errors or defects will not provide a basis for a reversal in a criminal prosecution. Cf. State v. Schleining, 146 Mont. 1, 15, 403 P.2d 625 (1965); State v. Cates, 97 Mont. 173, 198, 33 P.2d 578 (1934).”
On the basis of the entire, record, it is apparent the evidence presented by the police officer, over the objection of defendant, was of little importance. What the officer stated was that a couple of days before he had observed this Cadillac car with Washington plates on it drive up over the curb at a certain location. He and another officer noted the car with defendant and prosecutrix in it on January 18th and he was one of the arresting officers. This statement by the officer in explanation of how he happened to investigate this particular car certainly cannot be said to affect the substantial rights of defendant.
Going on to defendant’s next allegation of error — not allowing testimony as to the demeanor of the prosecutrix at the time her deposition was taken — it is incomprehensible to this Court how such testimony could be relevant to the issues as they were when before the trial court. Conceding that the prosecutrix became emotional and hysterical during the course of the trial, her demeanor at the taking of her deposition can in no way be used to impeach her demeanor at the time of the trial.
Defendant contends that at the time of the taking of her deposition, prosecutrix was “* * * calm, very cool about the situation.” This was 32 days after the crime, and was in the presence of the court reporter,- county attorney, and defendant’s attorney. The atmosphere was obviously different than it would be at trial. There can be no question of the relevance -of :her demeanor immediately following the crime, and to this point there, was sufficient evidence presented; nor can there be any qustion of the relevance of prosecutrix’s Memeanor at the trial. That is a matter of record.
In view of our holding concerning the applicable law in cases of forcible rape defendant’s contention that the verdict was contrary to the law1-and evidence is-without merit.
■ This leads us to 'defendant’s last allegation of error, the refusal of the district court to grant (a) a dismissal at the close of the State’s case in chief;- (b) a directed verdict-at- the close of all testimony, and (e) a new trial. It is our opinion that the district court was correct in each of its rulings.
We have considered defendant’s contentions and find them totally without merit in light of the evidence presented to the district court. It has long been the-law in this state that a rape conviction may be sustained by -the uncorroborated testimony of the prosecutrix. State v. Moe, 68 Mont. 552, 219 P. 830. Further, as was said by- this Court speaking through Justice Haswell as recently as July 8, 1969, in State v. Bouldin, 153 Mont. 276, 456 P.2d 830:
* * this Court has frequently observed that disputed questions of fact and the credibility of witnesses will not be considered on appeal but that determination of such matters is within the province of the jury. As long as there is substantial evidence to support the verdict it will not be disturbed on appeal. (Citing cases.) Here, the testimony of the prosecutrix and the surrounding circumstances constitute substantial evidence to support the conviction.”
The State established a prima facie ease. Once a prima facie case is presented, the burden of coming forward with evidence shifts to the defense. A review of the entire record in this case indicates that the defendant did not satisfy that requirement; therefore, the denial of defendant’s motion for dismissal at the end of the State’s ease in chief was proper.
In this jurisdiction a directed verdict in a criminal •case is given only where the State fails to prove its case and there is no evidence upon which a jury could base its verdict. State v. Yoss, 146 Mont. 508, 409 P.2d 452; State v. Willicombe, 130 Mont. 325, 301 P.2d 1116; State v. Welch, 22 Mont. 92, 55 P. 927. For the same reason that dismissal in the instant case was refused, a fortiori, the district Court’s refusal to grant a directed verdict at the close of all the testimony was also proper.
There was nothing in defendant’s motion for a new trial which would have justified setting aside the verdict and the new trial was properly refused. State v. Peschon, 131 Mont. 330, 310 P.2d 591.
For the foregoing reasons, the judgment of the district court is affirmed.
MR. JUSTICES CASTLES, JOHN C. HARRISON and HAS WELL, concur.
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MR. JUSTICE WEBER
delivered the Opinion of the Court.
A jury in the District Court for Yellowstone County convicted defendant Mr. Dawson of three counts of deliberate homicide, four counts of aggravated kidnapping, and one count of robbery. He was sentenced to death for each of the three deliberate homicides and for each of the three aggravated kidnapings which resulted in the death of the victim. Defendant appeals his conviction and death sentences. We affirm on all issues.
The issues are:
1. Was Detective Hatfield’s entry into and search of the defendant’s motel room an unconstitutional search?
2. Did the District Court’s reaction to the testimony of the surviving victim prejudice the case?
3. Were the sexual paraphernalia and magazines improperly admitted into evidence?
4. Did the prosecutor improperly comment upon the defendant’s silence?
5. Was the defendant denied a jury trial as to those facts of the crime which are now denominated as aggravating circumstances, and does the evidence support the court’s findings on those circumstances?
6. Did the trial court err by considering the defendant’s silence at trial in imposing the death penalty?
7. Did the sentencing judge improperly consider the victim impact statement and characteristics of the victim?
8. Should a jury have participated in the sentencing process?
9. Should the absence of a prior criminal history on the part of the defendant be treated as sufficiently substantial to warrant leniency?
10. Does Section 46-18-305, MCA, violate the Eighth Amendment?
11. Review of the sentence under Section 46-18-310, MCA.
The four members of the Rodstein family were staying at the Airport Metra Inn in Billings, Montana, preceding a family move from Billings to Atlanta, Georgia. The defendant checked into the room next to theirs at approximately 4:45 a.m. on Friday, April 18, 1986. At about 5:00 a.m., the teenage daughter of the Rodsteins, Amy, went outside to load the family car. The defendant, carrying a duffel bag from which a gun protruded, followed her back to her room. He then took all members of the family to his own room, where he bound and gagged all of them but Amy. He directed her to help him move the family’s belongings into his room. Then he bound and gagged Amy and went through the family’s belongings, taking out credit cards, cash, and jewelry.
The defendant injected Mr. and Mrs. Rodstein with an unknown substance which he said would make them sleep. Sometime shortly thereafter, they were strangled to death with a telephone cord. The bodies were placed under the sink in the rear of the motel room and were covered by a bedspread. Amy, who lay bound and gagged on the floor in another part of the room, did not see her parents being strangled or their bodies being moved.
Later that day, the defendant gave the 11-year old Rodstein boy, Andrew, a liquid to drink which caused him to sleep. Andrew was strangled to death and his body was placed with those of his parents. Again, Amy did not see the murder or her brother’s body being moved. The defendant had Amy help him move the Rodsteins’ vehi cles from the motel parking lot to an area behind a nearby gas station. The defendant also gave Amy a liquid to drink, but while he was not looking she dumped it on the bedspread and covered the wet area with a pillow.
During the day on Saturday, the defendant and Amy left the motel room several times. During these trips, the defendant made several phone calls, went to the bank, went to a fast food store, and stopped at his own apartment and a friend’s house. Amy did not attempt to get away because she believed her family was still alive and that an escape attempt might jeopardize their lives.
On Saturday evening, Billings police conducted an investigation at the motel after receiving reports that the Rodsteins were missing. The investigation is described more fully under Issue I. Briefly, after the defendant had come out into the parking lot and talked with the police several times, Detective Hatfield went to the defendant’s motel room door and asked permission to look through his room. When the defendant changed his position and opened the door slightly, Detective Hatfield entered the room and noticed the bedspreads in the back of the room. The defendant said, “Amy, they’re here to help you,” or words to that effect. Detective Hatfield found the bodies of the Rodsteins and summoned other officers for assistance. Detective Hatfield found Amy in the bathroom where the defendant had instructed her to stay after he observed the police outside.
An autopsy revealed that Mr. Rodstein died of asphyxiation. He had been strangled with “a great deal of force.” He also had several bruises on his scalp. Although needle marks were present in his arms, the substance with which he had been, injected could not be identified. Mrs. Rodstein had also died of asphyxiation. Her blouse, brassiere, and jeans had been opened prior to her death, but no evidence of sexual assault was found. She, too, had bruises on her head and needle marks on her arm. Andrew had also died of asphyxiation by strangulation. On his chest were a number of bruises “as if the skin were pinched very hard, very firmly, either by a finger or perhaps some object, some instrument.”
The defendant did not testify at trial, but he had made prior statements to other trial witnesses about a third party being involved. His defense at trial was that a third person committed the homicides or compelled him to commit the homicides. The jury found the defendant guilty on all counts charged.
I
Was Detective Hatfield’s entry into and search of the defendant’s motel room an unconstitutional search?
The factual circumstances surrounding Detective Hatfield’s entry into the motel room are critical to the resolution of this issue. Therefore, we set out the facts in detail.
When the officers from the Billings police department arrived at the Airport Metra Inn shortly before 11 p.m., they knew that the Rodstein family had been missing for over 24 hours and that the family’s two cars had been seen near the motel. The officers parked near the Rodstein vehicles. A neighbor of the Rodsteins who had followed the officers to the motel confirmed that the vehicles belonged to the Rodsteins.
Detective Hatfield learned from the motel clerk that the Rodsteins had been assigned Room 149 for Wednesday and Thursday nights. The room had since been assigned to a person from Bozeman. The clerk also told the detective that a person named John Monroe had been in Room 151 for a couple of days, and that John Monroe was driving a black Volkswagon bug.
When Detective Hatfield returned to the Rodsteins’ cars, another detective told him he had seen a man come out of Room 151 three times while Detective Hatfield was in the motel office. The individual was then outside, and Detective Hatfield approached and asked if he was John Monroe. The defendant said that he was John Monroe, and Detective Hatfield identified himself as a Billings police officer. He told the defendant that they were looking for the owners of the Rodsteins’ cars. The defendant stated that he knew nothing about the cars or their owners. Detective Hatfield testified that the defendant did not appear to be under the influence of drugs.
The police officers proceeded to search the Rodsteins’ cars. The defendant then approached Detective Hatfield and said he had helped a female between the ages of 12 and 29 start one of the cars one night. He also told them that someone had been “messing around” with the cars in the parking lot one night. Then he returned to his room.
The officers proceeded to go through Room 149 and all the unoccupied rooms on that side of the motel. One of the officers went to Room 151, knocked on the door, and spoke with the defendant just outside the room. At that time, the defendant gave the officer his real name and stated that he had registered under a false name because he was with a married woman. He also said that he had noticed that the Rodsteins’ cars had been moved while he was staying at the motel.
After checking the unoccupied rooms, the officers decided they ought to check Room 151 because they were becoming suspicious of the defendant. Detective Hatfield knocked on the door of Room 151 and the defendant opened it, dressed only in a yellow towel. Detective Hatfield stated that he would like to check the room. Defendant asked why and the detective replied that they were looking for anything which might help them locate the Rodsteins. At this time, Detective Hatfield was standing just outside Room 151 and the defendant was standing in the doorway, with the door ajar. Detective Hatfield testified that the room was dimly lit; the only light may have been that given off by the television. The detective asked if the defendant’s girlfriend was in the room and the defendant said, “No.” Detective Hatfield testified that at that point the defendant “stepped back away from the door pulling the door with him.” Detective Hatfield stepped into the room. He testified that it was his impression that the defendant had by his actions invited him to step inside.
At that point, Detective Hatfield noticed that the bedspreads from the beds were piled in the rear of the room. Defendant stated, “The bedspreads are in the back of the room.” Detective Hatfield testified that he said, “Yes,” and asked why, at which point the defendant said, “Amy, they are here to help you. You are going to be okay,” or words to that effect. Detective Hatfield knew that Amy was the name of the missing girl. Detective Hatfield testified that he looked at the defendant for a moment and the defendant said, “She is in the bathroom.”
Detective Hatfield directed the defendant to stay where he was and went to the rear of the motel room. He saw bound legs protruding from under the bedspreads, went back to the front of the room, and signaled the other officers to come in. Detective Hatfield then returned to the back of the room, ascertained that Mr. and Mrs. Rodstein and Andrew were dead, opened the bathroom door, and found Amy, who was physically unharmed.
In order to overcome the presumption against waiver of the constitutional right prohibiting warrantless searches and seizures, the State must show that the defendant gave unequivocal, specific consent to entry, uncontaminated by duress or coercion. State v. Brough (1976), 171 Mont. 182, 185, 556 P.2d 1239, 1241. “The question of voluntariness largely depends upon the facts of each case, no single fact being dispositive . . . The determination of voluntariness, rather, depends upon the ‘totality of the circumstances’ . . . [T]he issue of voluntariness is a factual one addressed to the discretion of the trial court.” [Citations omitted.] State v. Allies (1979), 186 Mont. 99, 111, 606 P.2d 1043, 1049-50, appeal after remand, 621 P.2d 1080.
Defendant argues that Detective Hatfield’s entry into the motel room was not justified by his consent. He cites State v. LaFlamme (1976), 170 Mont. 202, 551 P.2d 1011, in support of his argument. In that case, this Court stated,
“[I]t is clear that in the absence of a positive verbal assent to the search, equivocal conduct alone is insufficient as a basis for an inference of consent to search, which is a waiver of a constitutional right.”
LaFlamme, 551 P.2d at 1013. The defendant there was suspected of shooting at and damaging a weigh station near Broadus. Two police officers approached the defendant and asked if a ballistics examination could be made of his weapon. Defendant agreed, and looked for the gun but did not find it. The officers suggested that the defendant look in his pickup truck, which he did. After a brief search, the defendant stated, “Well, I guess it’s not here.” The sheriff said, “How about behind the seat?” Defendant responded, “Well, I don’t think so.” The sheriff tipped the seat ahead and uncovered the gun. This Court affirmed the lower court’s conclusion that clear and unequivocal consent to the search was not present, even though the sheriff believed from the circumstances that the defendant had consented to the search.
After considering the totality of the circumstances in the present case, the District Court concluded that the defendant’s conduct in admitting Detective Hatfield to the motel room was unequivocal. Defendant had been more than willing to talk with the police officers during their investigation at the motel. He not only stepped back from the door after stating that his girlfriend was not there, but also opened it wider. He did not object by actions or words to Detective Hatfield entering the room for the few moments they stood inside the door talking. The facts of this case support the conclusion that he voluntarily and unequivocally consented to Detective Hatfield’s stepping across the threshold of his motel room. We hold that the District Court’s ruling on this issue was not an abuse of discretion.
Following oral argument and submission of this case to the Court, defense counsel called the Court’s attention to a recent Ninth Circuit case, United States v. Winsor (9th Cir. 1988), 846 F.2d 1569. That case involved a visual search of a hotel room after police demanded that the door be opened. Because Detective Hatfield’s initial entry into the motel room was consentual, and in the absence of any demand for entry, Winsor is not applicable as to the initial entry.
Further, where exigent circumstances exist, a warrantless search and seizure may be reasonable. Warden v. Hayden (1967), 387 U.S. 294, 87 S.Ct. 1642, 18 L.Ed.2d 782; State v. Dess (1982), 201 Mont. 456, 655 P.2d 149. “The Fourth Amendment does not require police officers to delay in the course of an investigation if to do so would gravely endanger their lives or the lives of others.” Warden, 387 U.S. at 298-99, 87 S.Ct. at 1646. Although the United States Supreme Court has not applied an exigent circumstances rationale to a situation directly comparable to the one here, the Ninth Circuit has formulated a rule which we will apply:
“When police officers, acting on probable cause and in good faith, reasonably believe from the totality of circumstances that (a) evidence or contraband will imminently be destroyed or (b) the nature of the crime or character of the suspect(s) pose a risk of danger to the arresting officers or third persons, exigent circumstances justify a warrantless entry, search or seizure of the premises.
United States v. Kunkler (9th Cir. 1982), 679 F.2d 187, 191-92.
We hold that following the defendant’s statements to the effect that,”Amy, they are here to help you,” and, “She’s in the bathroom,” the exigent circumstances justified Detective Hatfield’s limited search of the motel room. It was probable that the Rodsteins were somewhere in the vicinity of the Airport Metra Inn, where their vehicles were found. In the opinion of Detective Hatfield, an experienced police officer, the defendant had acted in an odd or suspicious manner including his several approaches to the investigating officers, his inconsistent statements about what he knew about the Rodsteins, and his use and then abandonment of a false name. Finally, the officers knew that the defendant had been in the room adjoining the Rodsteins’ room for several days. When the defendant called to someone, using the name Detective Hatfield knew was that of the missing girl, and then told the officer, “She is in the bath room,” we conclude that Detective Hatfield had probable cause to search the room for the missing family.
Further, the police were faced with the probability that serious misfortune had befallen the Rodsteins, who, according to their friends and family, uncharacteristically had been missing for over 24 hours. We conclude that Detective Hatfield, acting on probable cause and in good faith, reasonably believed from the totality of the circumstances that there was a risk of danger to the Rodsteins justifying a search of the defendant’s motel room. We hold that the exigent circumstances justified Detective Hatfield’s warrantless limited search of the room, during which he found Amy and the bodies of her family. Before a complete search was done of the room, a search warrant was obtained.
In sum, we hold that there was no violation of the defendant’s right to be free from unreasonable searches and seizures. Defendant consented to the initial entry, and then exigent circumstances justified a limited search without a warrant.
II
Did the District Court’s reaction to the testimony of the surviving victim prejudice the case?
Amy Rodstein was the State’s principal witness at this trial. Because testifying was very difficult for her, the parties agreed that she would be questioned by her own attorney, not by the attorneys representing the State and the defendant. Amy’s therapist sat with her as she testified, and recesses were called whenever Amy’s counsel felt that they were needed.
At the conclusion of Amy Rodstein’s testimony, she and other persons in the courtroom were in tears or nearly so. The court ordered a recess, in a voice which “cracked or wavered.” The defense argues that the court’s facial expression and demeanor also conveyed strong emotion. The next morning, the defendant moved for a mistrial because of the possible effect of the court’s actions and demeanor upon the jury. The court denied the motion.
Defendant, as do all criminal defendants, had a constitutional right to trial by an impartial jury. Mont. Const., Article II, Sections 24 and 26; U.S.Const. amend. VI. To avoid prejudice to the defendant, the judge in a criminal trial should avoid making remarks which are calculated in any way to influence the minds of the jury. State v. Fuller (1906), 34 Mont. 12, 26, 85 P. 369, 374. However, “it is not every remark so made that may be alleged as ground of error.” Fuller, 85 P. at 374. To reverse a lower court’s ruling on a motion for mistrial, this Court must be presented with evidence that is clear, convincing, and practically free from doubt that the trial court’s ruling was erroneous. Schmoyer v. Bourdeau (1966), 148 Mont. 340, 343, 420 P.2d 316, 317-18.
The transcript does not convey any potential prejudice by the court. The defense’s argument hinges on the tone of voice and emotional content in which the order for a recess was delivered. Defendant relies upon the county attorney’s statement at the mistrial motion to support his claim. The county attorney stated that at most the court’s conduct went to the weight of the evidence. That, of course, is only the county attorney’s off-the-cuff remark. The lower court heard the arguments of both sides on this issue, and, especially in this case, was in a much better position than are we to judge whether the jury might have been prejudiced. We cannot conclude that the court’s ruling denying a mistrial was clearly erroneous. We hold that the denial of a mistrial was not error.
Ill
Were the sexual paraphernalia and magazines improperly admitted into evidence?
The State introduced into evidence at trial six pornographic magazines and two plastic artificial penises or dildoes found in Room 151. Two of the magazines were found tucked between drawers of a dresser in the room. The other materials were in the duffel bag which the defendant carried when he first approached Amy Rodstein. The defense’s motion in limine prior to trial to exclude all of these items was denied. The court reasoned that although no sexual crime had been charged, the State was not prohibited from pursuing a sexual motive theory at trial. The defense objected at trial to the admission of the two magazines found between the drawers on the basis that they were irrelevant, or, if relevant, that their relevance was outweighed by their prejudicial effect. That motion was also denied. The defense argues that no sexual crime was charged and no sexual motive theory was presented.
Absent abuse of discretion, this Court will uphold a district court’s weighing of the potential prejudice of a piece of evidence against its probative value. State v. Austad (1982), 197 Mont. 70, 83, 641 P.2d 1373, 1380. We note in considering the relevance of the above mater ials that there seems to be no rational and obvious plan or purpose for these murders. A theory of a planned sexual motive, while not proven to be fulfilled, is consistent with several facts: the defendant’s initial approach to Amy when she was alone, his treatment of her which was different from his treatment of the other family members, and the unfastened state of Mrs. Rodstein’s clothing. These facts were brought out by the prosecution at trial. It was not necessary that the State draw the final conclusion for the jury that there may have been a sexual motive behind these crimes. The District Court ruled that these pieces of evidence were admissible to show motive, and we find no abuse of discretion in that ruling.
The District Court also ruled that these materials were admissible into evidence as part of the corpus delicti. The State is entitled to present matters closely related to the charged offense and explanatory of it as part of the corpus delicti. State v. Gillham (1983), 206 Mont. 169, 179, 670 P.2d 544, 549. We conclude that there was no abuse of discretion in the District Court’s conclusion that the magazines and sexual paraphernalia were admissible as part of the corpus delicti of the crimes with which the defendant was charged. We hold that admission of the sexual paraphernalia and pornography was not error.
IV
Did the prosecutor improperly comment upon the defendant’s silence?
The Fifth Amendment to the United States Constitution guarantees criminal defendants a privilege against compulsory self-incrimination. Article II, Section 25 of Montana’s Constitution guarantees the same right. Prosecutorial comments deny the accused this privilege when the language used is manifestly intended or is of such character that the jury would naturally and necessarily take it as a comment on the failure of the accused to testify. State v. Anderson (1970), 156 Mont. 122, 125, 476 P.2d 780, 782.
In United States v. Robinson (1988),_U.S. _, 108 S.Ct. 864, 99 L.Ed.2d 23, the defendant was charged with mail fraud involving arson-related insurance claims. The defense at trial, at which the defendant did not testify, was that the government had breached its “duty to be fair” by denying the defendant the opportunity to explain his actions. In the State’s closing argument, the prosecuting attorney told the jury that the defendant “could have taken the stand and explained it to you.” The Court held that the defendant’s privilege against self-incrimination was not violated by this comment upon his failure to testify. Where the State’s reference to the defendant’s silence is a fair response to a claim made by the defendant or his counsel, there is no violation of the privilege against self-incrimination. Robinson, at_, 108 S.Ct. at 869.
In the present case, a witness for the defense testified at trial that some of the defendant’s acquaintances were conducting a drug deal at the Airport Metra Inn on the date the Rodsteins were kidnapped. He further testified that he heard one of these acquaintances say that the defendant had taken some hostages at a motel, and the other one told him to make the defendant “correct it,” if necessary.
The State’s attorney asked a police officer who testified at trial if “you [have] ever been able to get a statement from the Defendant.” The defense objected to the question, and it was withdrawn. The officer did not answer the question. Since no answer was given, we conclude that this question about the defendant’s silence was harmless.
In its closing argument, the State’s attorney referred to the defendant’s statement to one of the officers that, “You should have seen what he [the third person] did to that kid.” The attorney then said, “Where is this guy [referring to the third person] located at in Room 151? He [the defendant] doesn’t tell [the two officers] anything.” This reference was clearly in response to the defense presented at trial. We conclude that this reference to the defendant’s silence was admissible under Robinson.
V
Was the defendant denied a jury trial as to those facts of the crime which are now denominated as aggravating circumstances, and does the evidence support the court’s findings on these circumstances?
The defense discusses the right of a defendant at the common law to have a jury determine whether the crimes charged were committed with express malice. It argues that the aggravating circumstances with which the court justified the death penalties under Sections 46-18-302 to 305, MCA, are equivalent to a finding of malice. It argues that because of this historical situation, the defendant is entitled to have a jury determine the facts constituting the aggravating circumstances.
Regardless of the historical argument, the aggravating circumstances found against the defendant are related to sentencing only, and are not elements of the crimes charged. Jury participation is not constitutionally required in capital sentencing proceedings. State v. Smith (Mont. 1985), [217 Mont. 461,] 705 P.2d 1087, 1106, 42 St.Rep. 463, 487, cert. denied, 474 U.S. 1073, 106 S.Ct. 837, 88 L.Ed.2d 808. We conclude that the defendant was not entitled to a jury determination of whether the aggravating circumstances were present in this case.
The defense also argues that the evidence does not support the court’s finding that the homicides were committed by means of torture. See Section 46-18-303(3), MCA: “The offense was deliberate homicide and was committed by means of torture.” The defense argues that if the victims were unconscious when they were killed, they were not killed by means of torture. It also argues that the defendant’s acts before the victims were rendered unconscious did not kill them, so that it cannot be said that they were killed by means of torture.
The Rodsteins were bound and gagged tightly enough that, according to the medical testimony, they would have died of suffocation if they hadn’t been strangled. They were forced to see their family members similarly bound and gagged and their teenage daughter and sister taken by the defendant out of the room where they were captive. They then were forcefully injected or witnessed the injection of their family members with unknown drugs. Mr. Rodstein was strangled with sufficient force to break his voicebox. Mrs. Rodstein was hogtied, with her legs bent up behind her. Andrew Rodstein was subjected to the peculiar injuries to his chest. We hold that there is substantial evidence to support the District Court’s finding that the Rodsteins were killed by means of torture.
Next, the defense argues that the trial judge improperly applied Section 46-18-303(4), MCA: “The offense was deliberate homicide and was committed by a person lying in wait or ambush.” The defense asserts that several elements required under the common law antecedent of this statute are missing: secret waiting, watching from concealment, and presence of the murder weapon during the waiting and watching.
When the defendant approached Amy Rodstein in the parking lot, he had already laid out tape and gags on a bed in his room. He approached her carrying a duffel bag from which the muzzle of a gun protruded. We conclude that it is immaterial whether the actual murder weapon, the telephone cord with which the victims were strangled, was the defendant’s or the Rodsteins’. Defendant had laid out the tape and gags and had with him syringes, drugs, and the unloaded gun. We conclude that there is substantial evidence to support the District Court’s finding that the deliberate homicides were committed by a person lying in wait or ambush.
VI
Did the trial court err by considering the defendant’s silence at trial in imposing the death penalty?
The court’s findings in its sentencing order included the following:
“The Court has had the opportunity to observe the Defendant during the entire trial and throughout all proceedings. His conduct in all proceedings has been appropriate. Scarcely a word has been spoken in the Court’s presence. The complete lack of emotion and cool detachment in his demeanor has been noted throughout. As Dr. Van Hassel testified, lack of an emotional response can be a coping mechanism of denial, or a personality that shows no overt emotion normally or, finally, that the person truly is not concerned. Whatever the reason, the Defendant has demonstrated no remorse or genuine concern or respect for human life to the time of sentencing.”
The defense argues that this finding constitutes improper consideration of the defendant’s constitutional right to remain silent. It argues that the case should be remanded for resentencing without consideration of this factor, because the defendant would have to give up his right to remain silent in order to show remorse.
The scope of matters which a court may consider in sentencing goes beyond matters admissible in a criminal trial. Section 46-18-302, MCA. The above finding could express absence of a mitigating factor. In any event, we conclude that the presence of this finding is not significant because of the presence of several other findings warranting imposition of the death penalty.
VII
Did the sentencing judge improperly consider the victim impact statement and characteristics of the victim?
The presentence investigation report given to the judge prior to sentencing contained a three-paragraph “victim’s impact statement” which stated that three of the four members of the Rodsteins’ immediate family are deceased as a result of this crime. It also stated that Amy was undergoing psychological counseling and gave the cost of that counseling. Further it stated that Amy’s performance at the time the report was written had been described by her therapist as “not doing so well.”
The defense argues that under Booth v. Maryland (1987), 482 U.S. _, 107 S.Ct. 2529, 96 L.Ed.2d 440, the District Court’s receipt and consideration of evidence of the effect of the crime upon the Rodsteins, and upon Amy Rodstein in particular, violates the Eighth Amendment. It asserts that resentencing is required because of this error.
As was true in State v. Keith (Mont. 1988), [231 Mont. 214,] 754 P.2d 474, 487-88, 45 St.Rep. 556, 573-75, the situation in this case differs from that in Booth in several particulars. Sentencing in this case was by the court, not by jury as in Booth. The victim impact statement here consisted of three paragraphs. In Booth the victim impact statement was a lengthy and poignant collection of statements by the victims’ surviving family. We conclude as we did in Keith that Booth is not controlling because of important factual distinctions. We hold that the sentencing judge properly considered the victim impact statement and the characteristics of the victims.
VIII
Should a jury have participated in the sentencing process?
The defense concedes that both this Court and the United States Supreme Court have ruled that death penalty sentencing need not be done by a jury to be constitutionally sound. State v. Smith (Mont. 1985), [217 Mont. 461,] 705 P.2d 1087, 1105-06, 42 St.Rep. 463, 4B6-87, cert. denied, 474 U.S. 1073, 106 S.Ct. 837, 88 L.Ed.2d 808; Proffitt v. Florida (1976), 428 U.S. 242, 252, 96 S.Ct. 2960, 2966, 49 L.Ed.2d 913, 922-23. It argues perfunctorily that since the Montana Legislature meets only in alternate years, jury participation in death penalty sentencing is important so that current community sentiment is expressed.
We decline the defense’s invitation to overrule Smith and distinguish Proffitt. We again hold that a jury need not be the sentencing body where the death penalty is imposed.
IX
Should the absence of a prior criminal history on the part of the defendant be treated as sufficiently substantial to warrant leniency?
In its sentencing order, the court found that one statutory mitigating circumstance under Section 46-18-304, MCA, was present: the defendant had no significant history of prior criminal activity. Section 46-18-304(1), MCA. The defense argues that the presence of this mitigating factor is sufficient to warrant leniency.
We have previously rejected the proposition set forth by the defense. State v. Smith (Mont. 1985), [217 Mont. 461,] 705 P.2d 1087, 1097, 42 St.Rep. 463, 476, cert. denied, 474 U.S. 1073, 106 S.Ct. 837, 88 L.Ed.2d 808; State v. Coleman (1979), 185 Mont. 299, 331-32, 605 P.2d 1000, 1019-20, cert. denied, 446 U.S. 970, 101 S.Ct 34, 65 L.Ed. 2d 1177. Here we again conclude that it was not error for the District Court to refuse leniency when the nature of the crimes of which the defendant has been convicted is weighed against his lack of a significant prior criminal history.
X
Does Section 46-18-305, MCA, violate the Eighth Amendment?
The defense argues that Section 46-18-305, MCA, allows the imposition of cruel and unusual punishment because it does not sufficiently narrow the class of death-eligible defendants. That statute provides:
“Effect of aggravating and mitigating circumstances. In determining whether to impose a sentence of death or imprisonment, the court shall take into account the aggravating and mitigating circumstances enumerated in 46-18-303 and 46-18-304 and shall impose a sentence of death if it finds one or more of the aggravating circumstances and finds that there are no mitigating circumstances sufficiently substantial to call for leniency. If the court does not impose a sentence of death and one of the aggravating circumstances listed in 46-18-303 exists, the court may impose a sentence of imprisonment for life or for any term authorized by the statute defining the offense.”
The defense acknowledges that its argument has previously been rejected by this Court. See State v. McKenzie (1980), 186 Mont. 481. 514-19, 608 P.2d 428, 448-51, cert. denied, 449 U.S. 1050, 101 S.Ct. 626, 66 L.Ed.2d 507. We affirm our holding from McKenzie.
XI
Review of the sentence under Section 46-18-310, MCA.
Under Section 46-18-310, MCA, this Court, in reviewing a death sentence, must determine 1) whether the sentence was imposed under the influence of passion, prejudice, or any other arbitrary factor; 2) whether the evidence supports the judge’s findings on any mitigating and aggravating circumstances; and 3) whether the sentence is excessive or disproportionate to the penalty imposed in similar cases, considering both the crime and the defendant.
As to the first determination, the defense has not argued that the sentence was imposed under the influence of passion, prejudice, or any other arbitrary factor. Issue VII does discuss and rule upon a related issue with regard to the victim impact statement. We have reviewed the record and conclude that there is no indication in that record that the sentence was imposed under the influence of passion, prejudice, or any other arbitrary factor.
The second determination requires this Court to consider whether the evidence supports the judge’s findings of the existence of aggravating and mitigating circumstances as enumerated in the statute. We have made a determination on two of the aggravating circumstances under Issue V. The other two aggravating circumstances found by the District Court are that the offenses were deliberate homicides committed as part of a plan or scheme whereby more than one person would die, and that the offenses were aggravated kidnappings resulting in the deaths of the victims. Sections 46-18-303(5) and (7), MCA. Clearly, the evidence supports both of those findings.
Last we are to determine whether the sentence is excessive or disproportionate to the penalty imposed in similar cases, considering both the crimes and the defendants. No argument has been made on this issue by the defendant. However, in accordance with our statutory duty, we have considered the five Montana death penalty cases since 1973. The facts of these cases are discussed in Keith, 754 P.2d at 480-81.
The crimes in this case extended over a number of hours, including the kidnapping of the four persons, the binding and gagging of the persons, the injection of substances into Mr. and Mrs. Rodstein, the subsequent strangulation of Mr. and Mrs. Rodstein with the telephone cord, the giving of a liquid to 11-year old Andrew Rodstein in order to make him sleep, and the strangling of Andrew. The defendant gave Amy a similar liquid to drink but because she poured it out when the defendant was not looking she may have been protected from her own deliberate homicide. As previously discussed, the deliberate homicides were committed by means of torture and by the defendant lying in wait or ambush. As discussed above, the aggravating circumstances also include that the offenses were deliberate homicides committed as a part of a scheme or operation which resulted in the deaths of three persons, including the 11-year old, and that the offenses of aggravated kidnapping resulted in the deaths of the victims.
We have considered the crimes and the defendants in each of the cases discussed in Keith and compared the same to the crimes and the defendant in the present case. In comparing the crimes, we conclude that the crimes committed by the defendant were at least as grievous and heinous as were those involved in the other described death penalty cases. We also conclude, after considering the defendants in each of the cases cited in Keith, that the defendant’s lack of a prior criminal history, when weighed against the nature of the crimes of which he was convicted, does not make his sentence disproportionate in comparison with the other cases. Finally, we have considered State v. Keefe (Mont. 1988), [232 Mont. 258,] 759 P.2d 128, 45 St.Rep. 1034, in which the defendant was not sentenced to death although he was convicted of the deliberate homicides of three family members in their home. However, that defendant was under the age of 18 at the time the crimes were committed.
We hold that the sentences of death given in the present case are not excessive or disproportionate to the penalty imposed in similar cases in Montana, considering both the crimes and the defendants. As required by Section 46-18-310, MCA, in reaching this conclusion, we have considered the punishment as well as any errors enumerated by way of appeal.
We affirm the judgment of the District Court. This cause is remanded to the District Court for the setting of an execution date.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, SHEEHY, GULBRANDSON, HUNT and McDONOUGH concur.
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MR. JUSTICE JOHN C. HARRISON
delivered the Opion of the Court.
This is an appeal from a judgment entered on a jury verdict. This is the second appearance of the case in this Court, Sheehan v. DeWitt, 150 Mont. 86, 430 P.2d 652. It is an action to recover damages for an assault upon the plaintiff-respondent, William F. Sheehan, by the defendant-appellant, E. A. DeWitt. At the first trial the jury awarded plaintiff $1,500 compensatory damages and $5,000 punitive damages. On appeal this Court found the awards excessive and ordered that they be reduced or the ease be retried. On retrial the jury reduced the award of compensatory damages to $1,000 but found for the plaintiff as to punitive damages in the amount of $5,000.
The facts leading up to the assault are well set forth in the first case, Sheehan v. DeWitt, supra. In our consideration of this second appeal we believe it important, in view of the action by the jury, to emphasize certain facts. First, the defendant had at some time during his career practiced law and his awareness of the consequences of his act is quite evident from his testimony in the second trial. Second, a jury at the first trial had awarded $1,500 compensatory damages and $5,000 punitive damages and such an award could be repeated by the second jury. In spite of these facts the defendant evidenced no remorse at the second trial, rather he appeared to glory in the limelight of the affair.
The sole issue on this appeal is the question of damages for the Court found for the plaintiff on the question of liability on the first appeal.
The only medical witness, as in the first case, was Dr. John Cunningham whose testimony at the second trial covered not only caring for the contusions on the lower lip of plaintiff, for which he charged the plaintiff $6.00, but he went further and discussed the emotional and psychosomatic aspects of the affair as they applied to plaintiff.
The doctor established that we all have a different emotional threshold. “In other words, pressure on the mind that is required or that it takes to cause a person to deviate from his normal reactions to the things in life.”
In addition, in reply to a lengthly hypothetical question in regard to the emotional disturbance that could be caused to plaintiff, Dr. Cunningham testified:
“A. I feel that the, that the incident about which we’re talking, could and probably did cause this emotional disturbance.”
The plaintiff testified that the incident caused him considerable embarrassment, lack of confidence to do his work and to be emotionally upset until the first jury vindicated him. These conditions were further supported by the testimony of his 18 year old daughter and a local business man. In addition Dr. Cunningham further testified: ■
“Q. Now, Doctor Cunningham, in your opinion, is an emotional disturbance sometimes as disabiling or as discomforting as a physical injury? A. Yes, indeed. In fact, sometimes more so.”
Two issues as to damages are presented on this appeal — (1) whether the amount of the compensatory damages was excessive and, (2) whether the exemplary damages are excessive.
Here, we must consider not only the physical but the emotional aspects resulting from the assault. Due to the unique character of these types of eases it is difficult to set a standard or a rule of law from which the amount of recovery can be determined. The fact situation in each case being so diverse each case must of necessity rest on its own peculiar facts. 6 C.J.S. Assault & Battery § 56 (1969 P.P.).
The general rule as to damages recoverable for mental suffering resulting from an assault and battery is beyond dispute. In 6 C.J.S., Assault & Battery § 54(2), page 898, a judicial guideline is set forth as follows:
“Proper items for consideration in fixing compensatory damages are plaintiff’s wounded feelings, mental suffering, humilia tion, degradation, and disgrace, where such mental suffering is the proximate and natural result of the assault, although no battery or serious bodily injury was inflicted, and even though not specially pleaded. Included therein, and, therefore, a proper matter for consideration is the disgrace to plaintiff’s family, his shame, and the injury to his social standing.”
We find sufficient testimony was introduced at the second trial to support the $1,000 compensatory judgment.
Concerning the second issue we find no error. The right to punitive damages is not based on the amount of force used. The only question as to whether punitive damages will be allowed is whether the defendant was in a malicious state of mind. Vaughn v. Mesch, 107 Mont. 498, 87 P.2d 177. Indication of the defendant’s state of mind is evidenced in the testimony given at the second trial:
“Q. All right. Now, Mr. DeWitt, you struck Mr. Sheehan in his own office, did you not? A. Yeah. The county office.
“Q. Isn’t that right? A. Yeah.
“Q. And you reached to stop him from using the telephone in his own office, isn’t that correct? A. No sir.
“Q. He was in his own office when he attempted to pick up the telephone, was he not? A. But I had already hit him before he picked up the telephone.
“Q. Yes, and then when he tried to pick up the telephone you reached to take the telephone out of his hand? A. That’s correct. •
“Q. And that was in his own office, wasn’t it? A. He ococeupies it, yes.
“Q. Now, Mr. DeWitt, I take it you will agree that what you did that day you shouldn’t have done? A. Well, here is the point.
“Q. I’m asking you, Mr. DeWitt — A. He said I stole a herd of cattle and I couldn’t stand for it.
“THE COUNT: Now, that is not responsive, Mr. DeWitt. You. will have to answer the question. Will you read the question? (QUESTION READ.)
“A. No, I should have done it.
“Q. (By Mr. Dahood): You should have done it? A. Yes, sir.
“Q. You should have done what you did? A. Absolutely.
“Q. You should have hit him in the face, what you did do? A. That’s right.”
In the first case, Sheehan v. DeWitt, supra, we held that punitive damages were proper in this case. The attitude and testimony of defendant DeWitt at both trials convinces us that the amount of punitive damages awarded by both juries is not excessive.
The judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES HASWELL and BONNER, concur.
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
Defendants appeal from a judgment of the district court, Flathead County, ordering plaintiff’s registration as a voter, voiding plaintiff’s removal as a college trustee, and awarding plaintiff $4,500 attorney fees.
Plaintiff is Perry S. Melton, a voter residing in Flathead County, Montana, and a trustee of Flathead Valley Community College. Defendants are the Flathead county attorney, the county clerk and recorder and the board of trustees of the college. The county attorney was subsequently dismissed as a party defendant.
The material facts are undisputed. In 1933, in the United States district court in Montana, Melton plead guilty- to three violations of federal liquor laws. Counts one and two of the indictment involved the sale of liquor to Indians; count three involved concealing liquor with intent to defraud the federal government of taxes due thereon.
Melton was sentenced to 40 days in jail on counts one and two and fined $500 on count three. The fine was suspended and Melton was placed on probation for five years. After 40 years it is impossible to explain these sentences. The 40 day sentence was 20 days less than the minimum sentence set by statute. The penalty for the sale of liquor to any Indian was, at the time of the crime, a minimum sentence of 60 days in jail or a $100 fine, or both, with a maximum of not more than 2 years imprisonment and a fine of not more than $300 for each offense. We can find no authorization in the federal law, at the time, authorizing probation for a period of 5 years, some 3 years over the maximum sentence.
Forty years later the Flathead county attorney’s office filed a certified copy of the 1933 conviction with the county clerk and recorder. It was accompanied by an opinion that Melton had thus been convicted of a felony. The clerk and recorder thereupon struck Melton’s name from the voting rolls.
The county attorney’s office then advised the board of trustees of Flathead Valley Community College that Melton was no longer a registered voter and that his position as college trustee should therefore be declared vacant. The board subsequently so declared.
In the meantime Melton had filed suit in the district court of Flathead County seeking restoration of his voting rights and to prevent his removal as college trustee. This action became entangled in a procedural morass that defies description. In our view these procedural complexities are not germane to our decision and may be disregarded except as hereafter discussed in connection with attorney fees.
The end result of the district court proceedings was a judgment, (1) ordering the clerk and recorder to register Melton as a voter, (2) declaring null and void the action of the college board of trustees declaring Melton’s seat vacant, and (3) ordering Flathead County to pay Melton’s $4,500 attorney fees. All defendants appeal from this judgment.
The controlling issues on appeal can be condensed to three:
(1) Was Melton convicted of a felony within the meaning of Montana’s voter qualification laws?
(2) Were permissible legal remedies utilized here? ■
(3) Was the award of attorney fees correct?
The first issue is the principal substantive issue in this case. Melton’s voting rights and his eligibility as college trustee turn on this issue. The difficulty arises because of contrary definitions of a felony under federal and state law.
At all material times, federal law has defined a felony as “Any offense punishable by death or imprisonment for a term exceeding one year * * See 18 U.S.C.A., Sec. I and its predecessors. Under federal law the possible punishment that may be imposed determines whether a given crime is a felony or a misdemeanor without regard to the sentence actually imposed. Ex parte Margrave, 275 F. 200.
At the time of Melton’s conviction, the crime of selling liquor to Indians was punishable by a maximum imprisonment of two years and a fine of not more than $300 for each offense. Act of March 15, 1864, Ch. 33, 13 Stat. 29. The minimum sentence could have been a sentence of 60 days in jail or a fíne of $100 or both. 29 Stat. 506. This offense is clearly a felony by federal definition despite the 40 day sentence actually imposed on Melton for both violations.
A different definition of a felony is prescribed by Montana law. At the time of Melton’s conviction Montana’s statute. Section 10723, B.C.M.1921, declared:
“A felony is a crime which is punishable with death or by imprisonment in the state prison. Every other crime is a misdemeanor.”
The same statute further provided:
“When a crime, punishable by imprisonment in the state prison, is also punishable by fine or imprisonment in a county jail, in the discretion of the court or jury, it is a misdemeanor for all purposes after a judgment imposing a punishment other than imprisonment in the state prison.”
Thus in Montana, the sentence actually imposed after conviction determines whether the defendant has been convicted of a felony. State v. Atlas, 75 Mont. 547, 244 P. 477. This same definition and classification of crimes has been preserved in Montana’s new Criminal Code of 1973. Section 94-2-101(15) and (31), R.C.M.1947.
We recognize that Montana’s statutory definition of a felony relates only to crimes under state law and does not apply to crimes classified by federal statutes. State ex rel. Anderson v. Fousek, 91 Mont. 488, 8 P.2d 791. Nonetheless a fundamental difference of approach is apparent in this state’s classification of crimes and the difference of approach between felonies and misdemeanors.
The crux of the problem here is whether state or federal law determines the definition of a felony mandating cancellation of voter registration. At the time of cancellation of Melton’s voter registration state law, section 23-3014, R.C.M. 1947, provided in material part:
“(1) The registrar [county clerk and recorder] shall cancel any [voter] registration card:
“* * * (e) If a certified copy of a final judgment of conviction of any elector of a felony is filed * * Bracketed words added.)
In construing section 23-3014, R.C.M.1947, is Montana bound by the federal felony definition at odds with our own law? In 1932 this Court so held in construing a state statute relating to forfeiture of a public officee. State ex rel. Anderson v. Fousek, 91 Mont. 448, 455, 8 P.2d 791.
In Fousek a city police lieutenant was convicted in federal court of conspiracy to violate federal liquor laws and sentenced to pay a fine of $100. The crime involved carried a maximum punishment of a $10,000 fine and two years imprisonment. This Court held:
“* * * The character of an offense, i.e., whether a felony or a misdemeanor, must be determined by the laws of the-jurisdiction where the crime was committed.”
As federal law classified the offense as a felony because the maximum punishment exceeded one year, the police lieutenant’s position was declared vacant because of “His conviction of a felony” within the meaning of section 511, R.CJVL 1921.
Several weaknesses are apparent in this holding and the-statutory construction supporting it. It is the responsibility of the Montana legislature to establish qualifications for holding public office (as in Fousek) and voting qualifications (as. in the instant case). On what basis are we to imply that they delegated this responsibility to another legislative body, be it Congress or the legislature of another state, absent explicit statutory language to that effect? Yet that would be the-result of the holding in Fousek— that Montana is bound by foreign classifications of crimes.
Glaring injustices would result in many cases. For example,, by federal definition the following federal offenses are felonies : Using profanity in a “ham” radio transmission, 1& U.S.C.A. § 1464; purchasing a field jacket from a member of the Armed Forces, 18-U.S.C.A. § 1024; attempting to mail a letter using a stamp which has already been cancelled if committed by a postal employee, 18 U.S.C.A. § 1720. Did our-Montana legislature intend to deny its citizens the right to-vote for offenses like these?
In the instant case none of the three violations of which Melton was convicted would constitute a felony under our-statutory definition and classification of crime. The more-recent and persuasive authorities from our sister states hold, that persons violating federal liquor laws are not disqualified from voting or holding public office where, as here, the offenses would not be felonies under state law. See Elder v. County Election Board, (Okl.1958), 326 P.2d 776; Yocham v. Horn, 201 Okl. 647, 207 P.2d 919; State ex rel. Arpagaus v. Todd, 225 Minn. 91, 29 N.W.2d 810.
We hold that in construing state statutes relating to voter disqualification; a Montana voter cannot be denied the right to vote because of conviction of an offense in federal ■court that would not be a felony by Montana statutory definition. We expressly overrule the holding in Fousek that “The ■character of an offense, i.e., whether a felony or a misdemeanor, must be determined by the laws of the jurisdiction where the ■crime was committed.”
Therefore, Melton was not disqualified from voting rights; and his position as college trustee was not vacant.
Defendants in their second issue contend that the wrong remedies were pursued by Melton in seeHng restoration of his voting rights and in seeHng to prevent his removal as college "trustee.
Melton sought a writ of mandate to compel the county •clerk and recorder to reinstate his voting registration. The judgment of the district court did not grant such writ of mandate, but simply ordered the clerk and recorder to “register Melton as a voter and Flathead County elector”. The district •court apparently considered this equivalent to a writ of man- ' 'date as it subsequently held a hearing and awarded attorney fees as damages.
A writ of mandate is a permissible remedy “to compel "the performance of an act which the law specifically enjoins •as a duty resulting from an office”. It also is available “to compel the admission of a party to the use and enjoyment of .a right * * * to which he is entitled, and from which he is unlawfully precluded.” Section 93-9102, R.C.M.1947.
The difficulty here is that there was no clear legal right in Melton to restoration of his voting rights and no clear legal •duty on the part of the clerk and recorder to reinstate him as a voter. Fousek was the law of Montana at the time of the •events from which Melton sought relief. Under Fousek federal law and not state law determined whether Melton had been convicted of a felony, and under federal law at least two of the offenses of which he was convicted were clearly felonies. It is only by reason of our decision herein specifically overruling the Fousek rule that Melton is entitled to prevail.
Nor does a writ of mandate lie to correct or undo action already taken. State ex rel. Thompson v. Babcock, 147 Mont. 46, 409 P.2d 808. The county clerk and recorder had already determined that a certified copy of a final judgment of Melton’s conviction of a felony had been filed with her, which required her to cancel his voting registration. She thereupon cancelled it. Her acts preceded the filing of Melton’s suit.
We hold that a writ of mandate is not a permissible remedy. But for every right there is a remedy. Section 49-115, R.C.M.1947. Melton’s action is clearly a suit for equitable relief and adjudication of his rights which he is clearly entitled to institute and prosecute.
It is unnecessary to discuss the availability of a writ of review to test the validity of the action of the board of trustees of the college in declaring Melton’s seat vacant. The issue has become moot by Melton’s subsequent election to the board, and there is no issue concerning attorney fees on a writ of review.
The third issue of defendants is the legality of the award of $4,500 attorney fees. The only basis for such award is the statutory authorization to include such award in judgments granting writ of mandate. Section 93-9112, R.C.M.1947, and cases cited thereunder. Having found that a writ of mandate is not a permissible remedy here, the award of attorney fees is vacated and set aside.
In summary, we hold that: Melton was not convicted of a felony within the meaning of Montana’s voter disqualification law; Melton is entitled to be registered as a voter and elector of Flathead County, Montana; the award of attorney fees against Flathead County is vacated and set aside; and, costs are awarded to plaintiff in the district court and upon appeal.
We remand the case to the district court of Flathead County for entry of judgment accordingly.
MR. JUSTICES CASTLES, DALY, and ÍIASWELL, concur.
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MR. CHIEF JUSTICE HARRISON:
Original proceeding. Petition for writ of mandate wherein relator seeks production by the County Attorney of Missoula County of certain notes or letters left by a decedent that they might be examined by relator’s counsel. The relator filed a demand to produce in the district court which request was overruled and denied by such court.
This court in State ex rel. Keast v. District Court, 135 Mont. 545, 342 P.2d 1071, discussed the applicable principles of law, and we perceive no reason to depart therefrom in this proceeding.
The writ is denied and the proceeding dismissed.
MR. JUSTICES ANGSTMAN and CASTLES concur.
|
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Dale Duane Link alleges that the City of Lewistown failed to hire him as a firefighter in violation of the Montana Human Rights Act and the Governmental Code of Fair Practices. The District Court for the Tenth Judicial District, Fergus County, granted partial summary judgment for the City. We reverse.
The issue is whether the District Court erred in ruling that, as a matter of law, § 7-33-4107, MCA, prohibits the City from hiring as a full-time firefighter an applicant over thirty-four years of age who had been serving as a part-paid firefighter and member of the Firefighters’ Unified Retirement System for the City since before he was thirty-four years of age.
Dale Duane Link began working as a part-paid firefighter for the City of Lewistown in 1981. Under the City’s personnel rules, regulations, and requirements, part-paid firefighters are appointed by the fire chief and must serve a six-month probationary period. They receive a monetary fee for hours or fractions thereof served in fighting fires and in training.
In 1988, Link applied for a position as a fall-time firefighter for the City. The position was not initially publicly advertised because the Fire Chief viewed the pool of qualified applicants to be the part-paid firefighters. Appointment to this position required approval by the Mayor and City Council. After testing and interviews, the Fire Chief sought approval of Link for the full-time position at the regular Lewistown City Council meeting of September 19, 1988.
At the meeting, Council members expressed concern with the interpretation of § 7-33-4107, MCA, which states that firefighters “shall not be more than 34 years of age at the time of original appointment.” The statute does not define “original appointment.” Link had served as a part-paid firefighter since he was thirty-one years old, but he was thirty-nine when he applied for the full-time position. It is undisputed that he met all other qualifications for the job. After discussion, the City Council directed that the full-time position be publicly advertised.
Link contacted an attorney who advised the City Council that a complaint was being filed with the Montana Human Rights Commission. The matter came before the City Council again at its October 17, 1988 meeting. The Fire Chief informed the Council that he had publicly advertised the position and that he still recommended that Link be approved for the position.
After discussion, the Council tabled the matter pending review by the City Attorney. At a meeting the following month, Council members agreed to seek the opinion of the Montana Attorney General on the applicability of the age limitation in § 7-33-4107, MCA.
The effort to obtain an Attorney General opinion was abandoned when Link filed a complaint before the Montana Human Rights Commission in November 1988. In January 1990, that complaint was dismissed and Link was authorized to file a complaint in District Court pursuant to §§ 49-2-509 and 49-3-312, MCA.
Link’s complaint in District Court alleges that the City discriminated against him on the basis of age, political beliefs, and retaliation. The court originally denied cross-motions for summary judgment. However, on the parties’joint request for reconsideration, it granted partial summary judgment to the City on the age discrimination issue. It relied on the City’s argument concerning the effect of the following language in § 7-33-4106, MCA:
The mayor ... shall nominate and, with the consent of the council
or commission, appoint... all firefighters.
The court reasoned that because the Mayor and City Council did not have input into Link’s appointment as a part-paid firefighter, his appointment to that position was not an “original appointment” under § 7-33-4107, MCA. The partial summary judgment was certified to this Court pursuant to Rule 54(b), M.R.Civ.P.
In this case, the ordinances and personnel rules of Lewistown, which were approved by the Mayor and City Council, provide that part-paid firefighters shall be appointed by the Fire Chief. We conclude that, having delegated its authority to appoint part-paid firefighters, the City is now estopped from denying the validity of that delegation of authority.
As a part-paid firefighter, Link has contributed to the Firefighters’ Unified Retirement System (FURS) since 1981. The legislative history of § 7-33-4107, MCA, shows that concern about the retirement and disability system was a key reason for setting a maximum age for original appointment as a firefighter. Because part-paid firefighters participate in FURS, it is reasonable to conclude that the legislature intended the maximum age provision to apply to part-paid firefighters as well as full-time firefighters.
This Court gives deference to interpretations of the Montana Human Rights Commission concerning the laws which it enforces. Harrison v. Chance (1990), 244 Mont. 215, 220, 797 P.2d 200, 203. The Commission has interpreted “original appointment” under § 7-33-4107, MCA, to include appointment as a “part-time volunteer firefighter.” Elliott v. City of Helena (1989), Montana Human Rights Commission Cause No. 8701003108.
A 1991 opinion of the Montana Attorney General further supports the conclusion that appointment as a part-paid firefighter may constitute an “original appointment” under § 7-33-4107, MCA. The Attorney General, at 44 Op. Att’y Gen. No. 8, pointed out that the limitation on age at the time of original appointment in § 7-33-4107, MCA, is preceded by the following language:
The state of Montana determines that age is a valid, bona fide occupational qualification for the position of firefighter because of the rigorous physical demands of the firefighting profession and the expectation of many years of emergency service.
This provision clearly refers to the right under § 49-1-102, MCA, to be free from discrimination based on age, as part of the Montana Human Rights Act. The Attorney General farther pointed out that the Ninth Circuit Court of Appeals has noted the inherent contradiction in a policy that establishes a maximum hiring age but makes no provision for hiring persons over that age with extensive similar experience. See E.E.O.C. v. County of Los Angeles (9th Cir. 1983), 706 F.2d 1039, 1043, cert. denied, 464 U.S. 1073. A statute should be interpreted to give a lawful result if possible. Grossman v. State Dept. of Natural Resources (1984), 209 Mont. 427, 682 P.2d 1319; § 1-3-232, MCA. The interpretation given to § 7-33-4107, MCA, by the District Court results in thé likelihood that the statute would violate laws prohibiting age discrimination.
For all of the above reasons, we hold that Link’s appointment as a part-paid firefighter was his “original appointment” under § 7-33-4107, MCA. Therefore, we reverse the partial summary judgment and remand to the District Court for further proceedings consistent with this Opinion.
JUSTICES HARRISON, HUNT, TRIEWEILER and McDonough concur.
|
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
The District Court for the Thirteenth Judicial District, Yellowstone County, denied the motion of defendant John McFadden that Rule 11, M.R.Civ.R, sanctions be imposed against plaintiff Vladimir Jacildo and his attorney. McFadden appeals. We affirm.
The issue is whether the District Court erred in refusing to impose Rule 11 sanctions.
Vladimir Jacildo filed this action in January 1990 to recover damages for injuries he suffered while participating in a karate tournament in Billings, Montana, in October 1989. John McFadden was one of several defendants named. In June 1991, the District Court granted McFadden’s motion for summary judgment on grounds that McFadden, an agent of the corporation which sponsored the karate tournament, was not a proper party and that Jacildo had signed a liability waiver which released McFadden and the corporation from liability for ordinary negligence.
Jacildo moved to obtain leave to file an amended complaint naming additional defendants. His motion was denied. He then moved for reconsideration, under Rule 59(g), M.R.Civ.R, of the ruling on the motion to amend the complaint and the summary judgment for McFadden. The motion for reconsideration was also denied.
In September 1991, McFadden filed his motion for Rule 11 sanctions. After briefs were filed by both parties, the court denied the motion without comment. In October 1991, Jacildo and the remaining defendant agreed to a settlement and the action was dismissed with prejudice. Following that final disposition of the case, McFadden appealed.
Rule 11, M.R.Civ.R, provides in pertinent part
Every pleading, motion, or other paper of a party represented by an attorney shall be signed by at least one attorney of record in the attorney’s individual name, whose address shall be stated .... The signature of an attorney or party constitutes a certificate by the signer that the signer has read the pleading, motion, or other paper; that to the best of the signer’s knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation .... If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney’s fee.
Both Jacildo and his attorney signed the complaint filed in this case.
This Court has adopted the view that to satisfy Rule 11, M.R.Civ.P., a party need not be correct in his view of the law, but the party must have a good faith argument for his or her view of what the law is or should be. Bee Broadcasting Associates v. Reier (1989), 236 Mont. 275, 277-78, 769 P.2d 709, 710. The granting of a motion to dismiss is not dispositive of the issue of sanctions and the decision to order sanctions in a given case rests within the sound discretion of the district court. Bee Broadcasting, 769 P.2d at 711.
McFadden argues that the facts do not support the claim that he owed Jacildo a duty of care which he breached, proximately causing Jacildo’s injuries, or that Jacildo suffered out-of-pocket damages. McFadden also contends that a reasonable investigation should have disclosed that the liability waiver signed by Jacildo was legally enforceable and precluded the cause of action against McFadden and the corporation.
Jacildo maintains, as he did before the District Court, that his investigation prior to filing the complaint indicated that McFadden acted individually to arrange the karate tournament. He points out that under §§ 27-1-307 and -308, MCA, tort damages may be recovered for expenses paid by medical insurance. Jacildo’s attorney submitted affidavits describing her legal and factual investigation prior to filing the complaint. She cites an Illinois case which she argues supports the view that Montana law should be modified so that the liability waiver Jacildo signed could be avoided if a jury found negligence on the part of the defendants.
McFadden also contends that Jacildo’s Rule 59(g), M.R.Civ.P., motion to reconsider the summary judgment restated the same theory previously rejected by the District Court, was premature, and protracted this litigation. When Jacildo filed the motion, he set forth two supporting arguments not previously briefed. There is no evidence that Jacildo’s pleadings were interposed for an improper purpose.
We conclude that Jacildo has presented a good faith argument supporting his position. We therefore hold that the District Court did not abuse its discretion in refusing to allow sanctions.
Affirmed.
JUSTICES HARRISON, HUNT, McDONOUGH and WEBER concur.
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MR. JUSTICE WEBER
delivered the Opinion of the Court.
Relator, Joseph Duane Rough, petitioned this Court to review by writ of certiorari an order of the Cascade County District Court holding him in contempt. We reverse and remand.
The issues on appeal are:
1. Did the District Court have subject matter jurisdiction to enforce an obligation allegedly discharged by the United States Bankruptcy Court?
2. Did the District Court err in concluding that the credit union debt was excepted from discharge?
In 1977, Joseph Rough married Nancy Rough. In July 1982, they co-signed a promissory note for $2,394.20 to the Malmstrom Federal Credit Union. Nancy Rough also signed a separate guarantee agreement.
On December 30, 1982, Nancy and Joseph Rough were divorced. The District Court incorporated into the dissolution decree the parties’ property division and support agreement. Under the decree, Joseph Rough contributed $250.00 per month child support but no maintenance. In addition, he was to pay the debt owed to Malmstrom Federal Credit Union.
In July 1983, Joseph Rough filed a petition for bankruptcy. He listed Malmstrom Federal Credit Union as an unsecured creditor. Nancy Rough was not listed as a creditor, even though she was a co- debtor and guarantor on the debt. On November 16, 1983, Joseph Rough received a general discharge of his debts by order of the United States Bankruptcy Court for the District of Montana. Shortly thereafter, First Liberty Federal Credit Union, successor in interest to the Malmstrom Federal Credit Union, commenced a collection suit against Nancy Rough in Justice Court..
Nancy Rough moved the District Court to enforce the terms of the dissolution decree and require Joseph Rough to make appropriate arrangements to release her from any obligation due and owing to the credit union. Following a hearing on the motion, the District Court concluded:
“That the bankruptcy discharged the Respondent of his own obligation to pay the Credit Union, but did not discharge his obligation under the Decree of Dissolution to pay the indebtedness due the Credit Union for which the Petitioner was held liable.
“That by his failure to pay the Malmstrom Federal Credit Union obligation, the Respondent is in contempt of the Court’s Decree of Dissolution and the Agreement between the parties.”
The court held Joseph Rough in contempt but stayed the judgment, contingent on satisfactory arrangements being made to pay the credit union and Nancy Rough’s attorney’s fees. Upon Joseph Rough’s failure to make satisfactory arrangements, the District Court ordered him to serve 5 days in jail and execute an allotment authorizing $250 per pay period to Nancy Rough in order that she might pay the debt owed to the credit union, attorney’s fees, and interest. The order stated that the jail term was suspended for ten days and that if Joseph Rough executed the allotment, the sentence would be suspended.
Joseph Rough filed a petition for writ of certiorari asking this Court to review the contempt order and money judgment. The petition was granted and this Court stayed further contempt proceedings.
I
Did the District Court have subject matter jurisdiction to enforce an obligation allegedly discharged by the United States Bankruptcy Court?
Nancy Rough contends that the District Court has jurisdiction to determine whether obligations under a dissolution decree are en forceable and whether a debt is excepted from discharge because it was neither listed nor scheduled.
Joseph Rough argues that a discharge in bankruptcy wipes clean all previous debts. We disagree. Under Title 11 U.S.C. Section 523, some debts flow through the bankruptcy unaffected even though the debtor is granted a general discharge. Title 11 U.S.C. Section 523(a)(3) and (5) specifically except from discharge unlisted creditors and debts in the nature of alimony, maintenance or support.
The Bankruptcy Court has concurrent but not exclusive jurisdiction to determine whether debts are excepted from discharge under Section 523(a)(3) and (5).
“[D]ebts that fall within Section 523(a)(3) are of the type which the bankruptcy court has concurrent but not exclusive jurisdiction. Should a creditor bring suit in a court other than the bankruptcy court on a debt which he contends is excepted from discharge under Section 523(a)(3), the local court would determine the question of dischargeability.
“Section 523(a)(5) does not fall within the terms of Section 523(c) which discharges debts specified in Section 523(a)(2), (4) or (6) unless the creditor requests the court for a hearing to determine dischargeability of such debts. In effect, the determination of whether debts within Subsection (a)(2), (4) or (6) are dischargeable under Section 523 (a) falls within the exclusive jurisdiction of the bankruptcy court, and only as a matter of concurrent jurisdiction with respect to other types of debts . . .
“Thus, debts falling within other clauses of Section 523(a) may have the issue of dischargeability tried in courts other than those of bankruptcy unless a complaint is filed by either the creditor or the debtor in the bankruptcy court.”
3 Collier on Bankruptcy Paragraphs 523.13[9] & 523.15[6] (15th ed. 1985). See also In re Mattern (Bankr. S.D. Ala. 1983), 33 B.R. 566 and Loyko v. Loyko (Ct.App.Div.1985), 200 N.J.Super. 152, 490 A.2d 802.
We hold the District Court had jurisdiction to determine whether the debt was excepted from discharge.
II
Did the District Court err in concluding that the credit union debt was excepted from discharge?
In substance, the court ruled that the obligation under the dissolution decree was not dischargeable. Under Title 11 U.S.C. Section 523(a)(5), only debts constituting alimony, maintenance or support are excepted from discharge.
“An indebtedness for a former spouse for alimony, maintenance, or support of the spouse or the couple’s children which is memorialized in the divorce decree is not dischargeable in bankruptcy. 11 U.S.C. Section 523(a)(5). An indebtedness in the divorce decree that merely divides the marriage property, however, is dischargeable.”
Matter of Coil (7th Cir. 1982), 680 F.2d 1170, 1171.
“The issue of when an assumption of joint debts is in ‘the nature of alimony, maintenance or support’ as opposed to a division of communal property is to be determined by federal bankruptcy law [and not state law].” In re Calhoun (6th Cir. 1983), 715 F.2d 1103, 1107. The District Court made no findings of fact or conclusions of law with respect to the nature of the debt, and for that reason we remand this issue for further proceedings.
The mere fact a debt is labeled a property division or support payment is not controlling. A “well-established principle of bankruptcy law [is] that dischargeability must be determined by the substance of the liability rather than its form.” In re Spong (2d Cir. 1981), 661 F.2d 6, 9.
Although various tests are used by different circuits, we adopt the view of the Ninth Circuit:
“Because of the federal interests reflected in the Bankruptcy Act, the courts look to federal law to determine whether an obligation is ‘actually in the nature of . . . support’ and is therefore nondischargeable . . . ‘[R]egardless of how a state may choose to define “alimony”, a . . . court, for purposes of applying the federal bankruptcy laws, is not bound to a label that a state affixes to an award, and that, consistent with the objectives of federal bankruptcy policy, the substance of the award must govern.’
“In determining whether an obligation is intended for support of a former spouse, the court must look beyond the language of the decree to the intent of the parties and to the substance of the obligation . . . The courts that have considered this issue have used several factors to aid in the characterization of the debt. If an agreement fails to provide explicitly for spousal support, a court may presume that a so-called “property settlement” is intended for support when the circumstances of the case indicate that the recipi ent spouse needs support . . . Factors indicating that support is necessary include the presence of minor children and an imbalance in the relative income of the parties . . . Similarly, if an obligation terminates on the death or remarriage of the recipient spouse, a court may be inclined to classify the agreement as one for support ... A property settlement would not be affected by the personal circumstances of the recipient spouse; thus, a change in those circumstances would not affect a true property settlement, although it would affect the need for support. The court will look also to nature and duration of the obligation to determine whether it is intended as support. Support payments tend to mirror the recipient spouse’s need for support. Thus, such payments are generally made directly to the recipient spouse and are paid in installments over a substantial period of time.”
Shaver v. Shaver (9th Cir. 1984), 736 F.2d 1314, 1316-17. (Citations omitted.)
Section 523(a)(3) provides that debts neither listed nor scheduled are excepted from discharge unless the creditor had notice or actual knowledge of the case to permit timely filing of a proof of claim. We note that co-debtors and guarantors are classified as creditors and entitled to notice. See In re Warner (Bankr.D Utah 1980), 5 B.R. 434, In re Gilbert (Bankr.N.D.Ohio 1984), 38 B.R. 948; In re Barnett (Bankr.S.D.N.Y.1984), 42 B.R. 254. We conclude there is an unresolved fact issue as to whether Nancy Rough had notice or actual knowledge of the bankruptcy. See 3 Collier on Bankruptcy Paragraph 523.13[5][c] (15th ed. 1985). We remand this issue to the District Court.
We reverse the order of contempt and remand for the District Court to determine whether the debt was in the nature of alimony, maintenance or support and, if not, whether Nancy Rough had notice or actual knowledge of the case to permit timely filing of a proof of claim.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, MORRISON, SHEEHY, GULBRANDSON and HUNT concur.
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On February 6,1992, the Defendant was sentenced to forty (40) years for Mitigated Deliberate Homicide and it is the recommendation of the Court to the Parole Board that prior to eligibility for parole the Defendant shall complete the chemical dependence program, all social skills and vocational training at the Women’s Correctional Facility. Credit is given for 252 days time served.
On March 11, 1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Patricia Day-Moore, Legal Intern from the Montana Defender Project. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall remain the same as originally imposed.
The reason for the decision is the sentence imposed by the District Court is presumed correct pursuant to Section 46-18-904(3), MCA. The Division finds that the reasons advanced for modification are insufficient to deem inadequate or excessive as required to overcome the presumption per Rule 17 of the Rules of the Sentence Review Division of the Montana Supreme Court.
Hon. Thomas McKittrick, Chairman, Hon. John Warner, and Hon. James Purcell, Judges
The Sentence Review Board wishes to thank Patricia Day-Moore, Legal Intern from the Montana Defender Project for her assistance to the defendant and to this Court.
|
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MR. JUSTICE HARRISON
delivered the Opinion of the Court.
The plaintiff, Warren A. McMillan, appeals the order of the Eighteenth Judicial District Court, Gallatin County, Montana, dismissing his action for legal malpractice against the defendants. The case was submitted to the District Court on a stipulation of facts and judgment was rendered in favor of defendant’s motion for summary judgment. We affirm the judgment of the District Court.
The stipulated facts reveal the following:
On October 14, 1976, the plaintiff entered into a contract for deed for the purchase of real property from Hilda Peterson. The total purchase price was $130,000. Hilda Peterson borrowed $26,000 from George Stublar on October 21, 1977, to cure a delinquent debt. Stublar took a mortgage on the property denominated in plaintiffs contract for deed as security. When he had not received repayment from Hilda Peterson by June 18, 1981, Stublar filed suit charging her with nonpayment of the loan. The attorney for Stublar in that action was Gene Brown, a partner in the law firm of Landoe, Brown, Planalp, Kommers & Johnstone, P.C. Both Brown and the law firm are named defendants in this present action.
Brown obtained a judgment for Stublar on November 23, 1981 and immediately obtained a writ of execution from the Gallatin County Clerk of Court against Hilda Peterson in the amount of $38,993.86, including interest and costs. A sheriffs sale was held on December 1, 1981, at which Hilda Peterson’s interest in the Peterson/McMillan contract for deed was sold. McMillan, who still owed Hilda Peterson $98,802 on the contract, purchased it at the sheriffs sale for $39,000.
In February, 1982, Hilda Peterson filed a declaratory judgment action against McMillan and the Montana Bank of Bozeman, N.A., the personal representative of Stublar’s estate. The District Court dismissed as res judicata Hilda Peterson’s attempt to set aside the earlier judgment and sheriffs sale. On her appeal to this Court, we noted a lack of an entry of default judgment on the Stublar claim, a lack of actual notice to Hilda Peterson of the sheriffs sale, and a discount of almost $60,000 on the contract. We reversed the summary judgment against Hilda Peterson and instructed the District Court to annul and vacate the sheriffs sale. Peterson v. Montana Bank of Bozeman, N.A. (Mont. 1984), [212 Mont. 37,] 687 P.2d 673, 681, 41 St.Rep. 1575, 1584.
McMillan asserts in the present case that attorney Brown and the law firm “failed, through acts of commission and omission, to exercise due care in prosecuting the sheriffs sale and did not prosecute [the judgment] ... in a proper and skillful manner.” McMillan further asserts that he had a right to rely on attorney Brown’s legal work, and that reliance cost him the benefit of the bargain struck at the sheriffs sale, interest on money borrowed to make the sheriffs sale purchase, and legal fees. The District Court granted summary judgment to attorney Brown and his law firm reasoning that Brown owed no professional duty of skill and care to one not a client and not intended as a primary beneficiary. The court also ruled that the action was barred by the three-year statute of limitations in Section 27-2-206, MCA.
Although two issues are presented for our consideration, we find the statute of limitations issue controlling. Therefore, no discussion of the other issue is necessary. The issue before us is:
Did the District Court properly rule that the three-year limitation would not be tolled any later than March 8, 1982, when counsel for McMillan appeared to defend against Hilda Peterson’s complaint?
Section 27-2-206, MCA, sets a limitation for actions sounding in professional negligence against attorneys:
“An action against an attorney licensed to practice law in Montana or a paralegal assistant or a legal intern employed by an attorney based upon the person’s alleged professional negligent act or for error or omission in the person’s practice must be commenced within 3 years after the plaintiff discovers or through the use of reasonable diligence should have discovered the act, error, or omission, whichever occurs last, but in no case may the action be commenced after 10 years from the date of the act, error, or omission.” (Emphasis added.)
In the present case, the District Court ruled that McMillan’s complaint, filed November 7, 1986, was barred by the statute because McMillan’s attorney appeared in court to defend against Hilda Peterson’s request for declaratory relief on March 8, 1982, some four years and eight months earlier. McMillan appeals, claiming the statute was tolled until this Court decided Peterson, supra, on August 16, 1984, two years and three months before he filed his complaint.
McMillan argues that he suffered no injury until this Court decided Peterson, supra. Therefore, he asserts the statute cannot begin to run before August 16, 1984. However, Montana law is very clear and to the contrary. The statute begins to run on the date the plaintiff learned the facts, or through reasonable inquiry should have learned the facts, of the attorney’s alleged negligent acts. Schweitzer v. Estate of Halko (Mont. 1988), [231 Mont. 283,] 751 P.2d 1064, 1066-67, 45 St.Rep. 611, 614; Schneider v. Leaphart (Mont. 1987), [228 Mont. 483,] 743 P.2d 613, 616, 44 St.Rep. 1699, 1702; Burgett v. Flaherty (1983), 204 Mont. 169, 173, 663 P.2d 332, 334. There is no provision that the statute of limitations begins to run only after discovery of plaintiff’s damages. Schneider, 743 P.2d at 616.
The facts complained óf now, and which are alleged to be professional negligence, were known to McMillan and the attorney who represented him against Hilda Peterson’s action on March 8, 1982. Those facts form the basis for his professional negligence complaint against attorney Brown. As such, McMillan had until March 8, 1985 to file his cause of action against attorney Brown and the law firm of Landoe, Brown, Planalp, Kommers & Johnstone, P.C. He failed to do this and his action is properly barred.
Affirmed.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES WEBER, HUNT, McDONOUGH concur.
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MR. JUSTICE JOHN C. HARRISON,
delivered the Opinion of the Court.
This appeal is the result of a jury verdict awarding $4,000 damages to the plaintiff due to defendant’s alleged breach of contract to sell certain shares of stock in a ranch corporation.
The plaintiff brought the action to recover damages for defendant’s breach of contract. The defendant-appellant, R. W. Svejkovsky, hereinafter referred to as the seller, and his wife have the controlling interest in the Swan River Guest Ranch, a Montana corporation. In the spring of 1967, seller placed in the Minneapolis Tribune the following advertisement :
“FOR SALE: Controlling interest in first class operating western Montana Guest Ranch. For full details contact R. W. Svejkovsky, Box 103, Seeley Lake, Montana.”
On May 17, 1967, the plaintiff-respondent, Edward L. Mueller, hereinafter referred to as the buyer, answered the advertisement and began a series of negotiations which led the buyer and his wife to take a trip to Montana to personally inspect the ranch in August, 1967. While inspecting the operations of the ranch, buyer was requested by seller not to reveal to employees of the ranch seller’s intent to dispose of the ranch. After several days of discussion the parties arrived at what seemed to be complete agreement and they went into Missoula to consult with an attorney to formalize their agreement into a written contract. Both the buyer and seller, with their wives, participated in the conference with the attorney.
This meeting consisted of a discussion of the terms of an agreement for the sale of the seller’s interest. The attorney asked whether the parties eonld return in two hours to sign the contract, after it was typed, and they indicated they were willing, but the seller’s wife had another commitment. It was then agreed to handle the signing by mail. When the parties testified as to the substance of their discussion, they disagreed as to whether or not the matter of a Small Business Administration loan against the ranch was covered. Nevertheless the buyer characterized the meeting as follows:
“And we — like I say, we just discussed the possible terms that were to be agreed on. We agreed upon these fully, and there was no dissension on his part or mine. We didn’t argue about a thing.”
The buyer and his wife returned to Minnesota, where, in early September 1967, the buyer received a letter from the seller’s attorney indicating that the contract had been sent to the seller. The letter said in pertinent part:
“I have prepared the contract with Svejkovskys and yourselves and have sent it on to them for their signatures. As soon as it comes back I will forward it on to you for the signatures of you and your wife.”
At the August meeting the possibility of a down payment or earnest money was discussed. The buyer indicated that to make the down payment he would have to auction off his personal property; it was agreed the payment could be made when that was done. Upon this set of circumstances, and in full confidence the sale would be consummated, the buyer resigned from his job and prepared to auction off the property. Notices of the auction were sent to the seller. On the morning of the auction the seller called the buyer and indicated concern because the Small Business Administration had said it would not release the seller from personal liability for the loan. However, the buyer testified:
“He [the seller] said that he would go through with the sale whether SB A approved it or not.”
The property of buyer was auctioned off. The seller subsequently repudiated the agreement to sell the ranch.
The buyer then brought this action for damages for breach of contract. The seller contended that the alleged contract, not having been reduced to writing, was within the statute of frauds, and therefore unenforceable. The buyer alleged that the acts of the seller constituted an equitable estoppel, which thereby prevented the seller from raising the defense of the statute of frauds. The case was given to the jury which found in favor of the buyer and against the seller.
On this appeal the seller raises several issues. However, he has not made this appeal from an order denying a motion for a new trial as is the usual practice; instead, he has appealed from the judgment and from orders denying his motions for a directed verdict.
The buyer alleges that under the rule of Hanlon v. Manger, 85 Mont. 31, 227 P. 433, failure to move for a new trial limits the issues on appeal to a determination of whether there is any substantial evidence to support the verdict. However, since that ease Rule 2 of the Montana Rules of Appellate Civil Procedure has been adopted. The rule states:
“Upon appeal from a judgment, the court may review the verdict or decision, and any intermediate order or decision excepted or objected to within the meaning of Rule 46 of the Montana Rules of Civil Procedure, which involves the merits, or necessarily affects the judgment, except a decision or order from which an appeal might have been taken.”
The buyer’s contention that the issues are limited is without merit.
Nevertheless, given our view of the case, the issue dealing with the admission of the written unsigned contract is controlling.
It is the contention of the seller that there was insufficient evidence to support a finding that the parties had an oral contract and that the contract must be proved before other issues may be reached. This Court has recognized * * that for estoppel to prevent the statute of frauds from being invoked as an affirmative defense, a contract must exist, whether orally or in writing.” Anderson v. KFBB BroadcastCorp., 143 Mont. 423, 391 P.2d 2.
On an appeal from a motion denying a directed verdict there are three rules which apply. (1) The evidence introduced by the plaintiff will be considered in the light most favorable to him. (2) The conclusion sought to be drawn from the facts must follow as a matter of law. (3) Only the evidence of the plaintiff will be considered. Pickett v. Kyger, 151 Mont. 87, 439 P.2d 57.
Estoppel must be found or the statute of frauds, section 13-606 (4), R.C.M.1947, will make the oral contract for the sale of an interest in the majority shares of stock unenforceable. If the contract is unenforceable, no damages for breach thereof can be awarded.
Equitable estoppel requires the presence of six factors which this Court has repeatedly recognized. Hustad v. Reed, 133 Mont. 211, 231 P.2d 1083. One of these factors is conduct, acts or language amounting to a representation or concealment of material facts. The only specific conduct possibly raising an estoppel here is the statement of the seller, during the phone call which preceded the auction, that he would go through with, the sale regardless of what position the Small Business Administration took. This is a statement of present intent to do a future act. The rule previously announced by this Court is that such a statement is not a sufficient basis for an estoppel. Fiers v. Jacobson, 123 Mont. 242, 211 P.2d 968.
The reason for this rule is that the buyer is not reasonably entitled to rely on such a statement. A person may not be bound under such circumstances to forego changing his intention, Fiers v. Jacobson, supra. In this ease the buyer admitted that during the course of negotiations leading up to his trip to Montana, the seller evidenced considerable vacillation as to whether he really wanted to sell, or could sell, his interest in the ranch. In addition, the seller’s concern over the Small Business Administration loan problem, as evidenced by his call to the buyer on the day of the auction, was ample actual warning the seller might not go through with the sale even though he assured the buyer that he would. Therefore we hold there was not sufficient evidence upon which an estoppel could be based.
This being the case the motions for a directed verdict were improperly denied.
The judgment of the district court is reversed and the cause remanded for dismissal.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES HASWELL and CASTLES, concur.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
Sharon M. Garst appeals from a judgment apportioning marital property and from a denial of her post-trial motions in the District Court of the Sixteenth Judicial District in Powder River County.
Sharon and Orah (the latter also known as Dub) were married at Hot Springs, Arkansas, on February 22, 1972. They have two children: Jason, born on April 21, 1973, and Shayna, born on June 10, 1976.
Prior to their marriage, Sharon had worked as a secretary, and Dub had worked as a jockey, traveling racetracks around the country. For the first three years of their marriage, Sharon and Dub traveled extensively, allowing Dub to continue working as a jockey. In 1975, Sharon and Dub moved to a ranch owned by Dub’s parents in Powder River County, Montana. Dub worked as a ranch hand until September, 1977. At that time, Sharon and Dub bought the ranch from Dub’s parents for $243,750. This purchase included a conveyance of one-half of the underlying minerals owned by Dub’s parents. Sharon and Dub later conveyed one-half of their mineral interest to Dub’s brother.
Sharon and Dub lived and worked together on the ranch until July 1, 1980, when Sharon filed a petition for dissolution of marriage. Thereafter, Sharon and the couple’s two children moved to Broadus, where Sharon became employed as a secretary. At this time, Dub gave Sharon $14,000 to buy a mobile home. Dub continued to work and live at the ranch, and supplemented his ranch income by working occasionally as a jockey and as a musician. On July 17, 1981, trial was held. Sharon called two witnesses who had made appraisals of the ranch machinery and ranch land. Bob Barthel, a farm machinery dealer, submitted an appraisal showing the total value of the machinery to be $68,025. Dennis Jurica, an appraiser and realtor from Miles City, testified that the ranchland was worth $500,000.
Dub, on the other hand, testified that the value of the machinery was $37,850, and the value of the ranch was between $325,000 and $386,000.
On September 10, 1981, the District Court entered its findings of fact and conclusions of law. Among other things, the District Court found that the value of the machinery was $74,025, and the value of the ranch land was $356,874.37. The District Court determined the marital net equity of the parties to be $56,744.32. This compared to Sharon’s proposed finding of net equity to be $236,092.57 and Dub’s submitted net equity figure of $93,095.
The District Court divided the marital property as follows: SHARON GARST
1. The mobile home with Dub to assume the obligation thereon.
2. Twenty percent of the remaining livestock.
3. Fifty percent of the oil, gas, and mineral interest.
4. All of her personal property, including the automobile now in her possession.
DUB GARST
1. The land, machinery, balance of the livestock, balance of the oil, gas, and minerals, and the personal property in his possession.
2. All liabilities incurred during the marriage.
The basic issue boils down to this: Did the District Court abuse its discretion by failing to determine accurately the net worth of the marital estate?
The discretion of the District Court is given primarily by the criteria set forth in section 40-4-202(1), MCA, which states in part:
“In a proceeding for dissolution of marriage . . . the court . . . shall . . . finally equitably apportion between the parties the property and assets belonging to either or both, however and whenever acquired and whether the title thereto is in the name of the husband or wife or both . . .”
In reviewing divisions of marital property, this Court must determine only whether the District Court, in exercise of its discretion, acted arbitrarily, unreasonably, or without regard to recognized principles resulting in substantial injustice. In Re Marriage of Kis (1982), Mont., 639 P.2d 1151, 1154, 39 St.Rep. 119, 125. Only when the findings of a District Court are clearly erroneous will they be set aside. Rule 52(a), M.R.Civ.P.
Sharon’s primary complaint is that the District Court deviated from the evidence submitted by either party and valued assets significantly lower than the testimony justified. We agree with Sharon in some respects.
For example, both parties’ value of the land was higher than that determined by the District Court. In its findings of fact, the District Court indicated it arrived at the value of the land by increasing by ten percent per annum the purchase price of $243,750. This formula would raise the value of the land to $356,874.37. In another finding of fact, the District Court used extraneous factors such as “current production costs, drought, and prices for agricultural products,” and “the current concern for unit train loadings from grain terminals” to justify its finding as to the value of the land. None of these extraneous factors were ever mentioned in the testimony or exhibits presented by either party.
This Court stated in In Re Marriage of LeProwse (1982), Mont., 646 P.2d 526, 529, 39 St.Rep. 1053, 1057, “No abuse of discretion can be found in findings of fact and conclusions of law that: carefully set forth the fair market value, outstanding obligations, and net value of each marital asset; develop the trier of fact’s reasoning for accepting respondent’s appraisals and estimates over those offered by appellant; and are fully supported by the record.” (Emphasis added.) The District Court failed this test by using factors not supported in the record to determine the value of the land.
Sharon next contends that the District Court erred when it did not include in the marital estate the sum of $74,875, which represents the appraised value of the residence, outbuildings, corrals, and other structures located upon Dub and Sharon’s ranch. We do not agree with this contention. Testimony of both Sharon’s appraiser and Dub indicated that the buildings were considered when reaching the appraisal values. In this case, it was clearly within the court’s discretion to consider the buildings along with the land in determining the value of the ranch.
Sharon also contends that the District Court erred in its valuation of the ranch machinery. Again, we cannot agree with this contention, since the record supports the District Court’s finding. Bob Barthel’s appraisal of the machinery listed the total value to be $68,025. However, Barthel’s appraisal did not include a pickup truck, which Dub admitted under cross-examination was worth $6,000. The District Court added to Barthel’s appraisal the value of the truck, and determined the value of the machinery to be $74,025. Such a finding was clearly supported by the record and will not be disturbed by this Court.
Finally, Sharon disagrees with the manner in which the District Court calculated the marital indebtedness. The District Court entered the following findings of fact regarding the marital liabilities:
“The parties have incurred the following liabilities:
“Stockman’s Bank $23,969.68
Accrued Interest 1,120.78
“Federal Land Bank $133,103.30
Accrued Interest 15,306.00
“Federal Land Bank $21,325.25
Accrued Interest 2,452.27
“Commodity Credit $6,461.00
Accrued Interest 484.57
“Department of Interior $20,000.00
No Interest
“Russell Garst $166,236.00
Accrued Interest 6,901.20
“Mobile Home Obligation $19,770.00
$417,130.05
The evidence shows that Dub was allowed to introduce as an exhibit an affidavit outlining the parties’ ássets and liabilities. This exhibit fully supports the District Court’s finding concerning the marital liabilities. Therefore, substantial evidence exists in the record to support the District Court’s finding.
The magnitude of the District Court’s failure to determine accurately the net worth of the marital estate can be shown by examining the net worth figures placed in evidence by the parties. Sharon’s evidence indicated that the net marital equity totalled $236,092.57, and Dub’s evidence indicated a net marital equity of $93,095. However, the District Court found that the marital net equity was $56,744.32. The court’s figure is considerably less than the figures submitted by either of the parties. The court’s marital equity finding is clearly erroneous and is not supported by the record. The District Court, therefore, abused its discretion in arriving at the marital net worth.
The difference in net marital worth from the figure testified to by the husband and that found by the District Court is $36,350.68. The distribution to Sharon should be at least $18,000 more than awarded here, assuming the District Court was attempting to divide the marital estate equally.
As a final matter, Sharon requests that Dub be required to account for the income he received from oil and gas leases during the period between the parties’ separation and the entering of the decree by the District Court. Although the District Court did divide the record ownership of the mineral interests equally between Sharon* and Dub, Sharon did not receive any of the income therefrom until after the decree was entered. We hold that Sharon is entitled to her share of the income during the pendency of the divorce.
The District Court’s judgment is affirmed in part and reversed in part, in accordance with this opinion. We remand to the District Court with instruction that, unless the parties agree in writing submitted to the District Court for a method of Dub paying Sharon money or property worth $18,000 more than was awarded to her in decree here appealed from, and an agreed accounting of the oil and gas lease income during the litigation, within 30 days of remitti-tur from this Court, that the District Court proceed to hold a new trial on the distribution of the marital estate. Costs awarded to Sharon.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, WEBER and MORRISON concur.
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment of the district court of the eighth judicial district, in and for the County of Cascade, which rendered partial summary judgment in favor of defendant, D. E. Munroe, and against plaintiff, Safeco Insurance Company.
On November 5, 1971, John D. Buchanan filed suit in district court in Cascade County against David E. Munroe. The amended complaint in said cause states generally that Harold Schilling was farming Buchanan’s land north of .Cascade and that Schilling ordered seed wheat from Munroe who represented that it was spring wheat, but it was in fact winter wheat. The.complaint further alleges that Munroe told Schilling to replant with spring wheat and, although this was done, Buchanan sustained losses equivalent to the costs of replanting and thirty bushels per acre for one hundred forty-nine acres for which Munroe is liable.
On January 4, 1972, Viggo 0. Andersen and Einer G. Hovland, co-partners, doing business as Andersen & Hovland, filed suit in district court in Cascade County against Munroe Ranch Co., Inc. The complaint in said cause states generally that Mun-roe agreed to sell and deliver spring wheat seed to Andersen & Hovland and the same was planted by them but it was actually winter wheat which did not come up resulting in a crop loss, expense of destroying a crop to protect the next crop from disease, future additional farming expense, and future crop loss, or, in the alternative, the alleged damages are said to be measured by cost of seed, cost of treating seed, cost of transporting seed, cost of preparing soil to receive seed, cost of seeding and fertilizing, cost of spraying and top-dressing, loss of use of lands for one crop season, expense of destroying crop to protect next crop from disease, future additional farming expense, and future loss of productivity.
Munroe, the defendant in the two basic cases described above, purchased a “Growers & Ranchers” policy of insurance from Safeco Insurance Company, the plaintiff in the instant action. Listed on the policy as the “insured” is “D. E. Munroe, Donald G. Munroe and David M. Munroe ’ ’. The policy had a three year term from August 20, 1970 to August 20, 1973. The portions of the policy pertinent to this appeal are as follows:
“II. LIABILITY COVERAGE
“The company will pay all damages the insured is obligated to pay for liability imposed by law: (1) upon him; or (2) upon another, but assumed by him under a contract, because of bodily injury or property damage to which this insurance applies, caused by an occurrence. The company shall have the right and duty to defend any suit against the insured seeking damages on. account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, and may make such investigation and settlement of any claim or suit as it deems expedient. The company shall not be obligated to pay any claim or judgment or defend any suit after the applicable limits of the company’s liability has been exhausted by payment of judgments or settlements.
“Exclusions.
‘ ‘ This insurance does not apply:
<<* * *
“(d) to property damage * * * (6) to the named insured’s products arising out of such products or any part of such products * * *
(( % # *
“DEFINITIONS
< ‘ * * *
“ ‘damages’ includes damages for death and for care and loss of services resulting from bodily injury and damages for loss of use of property resulting from property damage;
“ ‘named insured’s products’ means goods or products manufactured, sold, handled or distributed by the named insured or by others trading under his name, including any container thereof (other than a vehicle), but ‘named insured’s products’ shall not include a vending machine or any property other than such container, rented to or located for use of others but not sold * * * ’>
Ci% *
“ ‘property damage’ means injury to or destruction of tangible property * *
Safeco contends here and alleges in its complaint that the policy coverage was never intended to insure against losses re- suiting from resale of products such as the selling of seed wheat the insureds happened to have on hand; and that, for such coverage, such persons wishing to be so insured must purchase the “misdelivery of seed” endorsement available at additional premium. However, it is uneontradicted by Safeco that Munroe was never offered such an endorsement nor that Munroe was even aware of the existence of such an endorsement.
Munroe tendered both coverage and duty to defend the two aforesaid actions. Both coverage and the duty to defend were denied by Safeco. Safeco then brought the instant declaratory judgment action asking the court to construe the policy provisions and to declare that Safeco has not contracted to cover the risks or the damages within the contemplation of the two basic actions and has no duty to defend them.
Safeco brought Harold J. Schilling and Jim Schilling into the case as defendants because at that time Safeco believed that the Schillings claimed to have suffered a loss arising out of the same or similar occurrence and were claiming that they also were entitled to recover against Munroe. On April 18, 1973, the Schillings brought an action which is similar to the first two basic actions. It would appear that the outcome of this appeal will determine also whether or not there is coverage and duty to defend under this new action brought by the Schillings.
In the instant case, defendants filed motions to dismiss and to strike which were ruled upon by the district court. The district court ordered Safeco’s allegations referring to the “misdelivery of seed” endorsement stricken from its complaint. The defendants then answered and counterclaimed against Safeco seeking to avoid the policy limits on the grounds, inter alia, of negligence and estoppel.
Safeco then brought a third party complaint against the Cogs-well Agency, Inc., of Great Falls, who had sold the policy of Safeco, alleging, inter alia, that Cogswell had represented to defendant Munroe that it was authorized to act for Safeco in ways in which it was not authorized to act, indicating there was coverage for the results of the seed 'wheat mix up when there* was not. Cogswell denies this allegation.
Thereafter Cogswell moved for summary judgment and Mun-roe moved for a pretrial summary judgment. The district court-issued its summary judgment which included findings of fact and conclusions of law holding that there was coverage and there* was a corresponding duty to defend. It is from this decision of the district court that -Safeco appeals. The district court denied! Cogswell’s motion for summary judgment on the third-party-complaint and made no ruling on the counterclaims of defendants. Those issues are not now before this Court.
To stop the continuance of the two basic actions pending the* appeal of the instant action, Safeco acquired from the district court an order staying proceedings in those actions. The defendants in the instant action thereafter received a modification) of the stay of proceedings to the effect that discovery in the two> basic actions could continue. Safeco then appealed the order-modifying the stay of proceedings allowing discovery. This. Court then entered its order staying discovery in the two basic: actions pending this appeal.
Safeco presents five issues for our consideration:
(1) Whether, because the coverage is only for injury to or destruction of “tangible” property, the district court erred in-holding that the alleged loss was covered by the policy?
(2) Whether liability coverage for property damages arising-out of insured’s products was excluded by the policy?
(3) Whether the district court erred in striking the allegations in Safeco’s complaint concerning the “misdelivery of seed” endorsement?
(4) Whether there is a duty to defend the underlying cases; in district court?
(5) Whether the appeal from the district court’s order modifying the stay of proceedings was'necessary to protect Safeco?
We answer the first three questions, in the negative, the fourth In the affirmative and the fifth we hold to be moot. ¥e affirm “the decision of the district court.
For purposes of discussion of the first issue we would like to set out the first sentence of the coverage provision as it would .appear if the irrelevant portions were deleted and the definitions incorporated therein:
The company will pay all damages, including damages for .loss or use of property resulting from injury to or destruction of tangible property, the insured is obligated to pay for liability imposed by law upon him because of injury to or destruction of tangible property to which this insurance applies, caused by -an occurrence.
The insurance applied to product liability coverage although, •as later dismissed, Safeco contends that such coverage was limited to bodily damages, property damage being excluded. Safeco •contends that whatever injuries suffered by Buchanan and An•dersen & Hovland, as alleged in their complaints, were injuries to “intangible” property and not injuries to “tangible” prop•erty. We find this contention to be without merit. We find no •error in and adopt the finding of fact No. 8 of the district court:
“8. That if the claimants against Munroe as aforedescribed ¡suffered any loss by virtue of having received and planted the ■wrong type of seed wheat, it follows, as a matter of common .knowledge, that the land in which the seed wheat was planted would have been damaged in that said land would have lost a ■portion of its retained moisture, would have lost a portion of its retained fertilizer, weeds would have grown thereon where no crop had grown, erosion would have occurred, said land would have to have been recultivated in order to render it suitable for the planting of another crop of the same or similar nature, and that if little or no crop grew, the claimants would have received little or no compensation by virtue of having lost a crop, and would have suffered loss of use of their lands”.
Although Safeco takes five and one-half pages of its brief to define the word “tangible”, we find it to be beyond dispute that a Montana wheat field and the crop therein, is tangible property. The district court clearly found injury to the wheat fields and thus injury to tangible property. The allegations of cost of replanting, thirty bushels per acre for one hundred forty-nine acres expense of destroying a crop to protect the next crop, cost of preparing soil, etc., is not damage to “intangible” property, as Safeco contends, but is merely the measure of the damage to the “tangible” wheat fields. Once injury to tangible property is found, the policy clearly states that it also covers damages for loss of use of property resulting from injury to tangible property.
The plaintiff, clear, unambiguous’ meaning of the language in the policy is that once it has been found that tangible property has been damaged, there is insurance coverage for all damages because the term damages is used without limitation and, in fact, is expanded to include damages for loss of use. The issue then becomes whether or not Safeco’s policy language is sufficiently strong enough to exclude insurance coverage for consequential damages — loss of profits, It might be that loss of profits is an item of intangible damage. However, it is of utmost importance to note that the policy does not, by any stretch, of the imagination, require that there be tangible damage to tangible property. Clearly, it was not Safeco’s intention to exclude consequential damages or they would have said so in the: policy.
Safeco, in attempting to distinguish, among others, Wells Labberton v. General Casualty Co. of America, 53 Wash.2d 180, 332 P.2d 250, and St. Paul Fire & Marine Insurance Co. v. Northern Grain Co., 365 F.2d 361, 368, (8th Cir.), argues that, the courts there were not faced with policy language limiting-coverage to injury to “tangible” property. We deem it unnecessary to go into the factual bases or issues of those eases, noting merely that they were similar to the instant appeal and the losses were held covered by the policies. Because the policies in those cases covered injuries to “property” rather than inju ries to “tangible property”, Safeco reasons that those cases are not applicable. However, Safeco’s argument falls one step short of the mark. To determine whether each particular case is applicable or not, the case must be examined to determine whether the injury involved was to tangible or intangible property. If that injury is to tangible proprety, then the addition of the word “tangible” to the definition of property would have no effect on the rule of the case. In each of the above cases, and in the instant appeal, the injury was to a wheat field and a wheat field is tangible property. And, despite Safeco’s denials that the injuries in Wells Labierton and Northern Gram were injuries to “tangible” property, the Court in Northern Grain said, at p. 366.
“Just as the diminution in value of the buildings in Hauenstein [Hauenstein v. St. Paul-Mercury Indem. Co., 242 Minn. 354, 65 N.W.2d 122] and Dakota Block [Dakota Block v. Western Cas. & Surety Co., 81 S.D. 213, 132 N.W.2d 826] constituted property damage within the ambit of the insuring agreement, so also does the diminution in the productivity of the wheat crop, as the result of an inferior and deficient quality of seed wheat, constitute property damage within the coverage of this policy. The crops raised by Northern’s customers were no less physical properties than the buildings in Hauenstein and Dakota Block.” (Emphasis supplied.)
We hold that the injuries alleged in the complaints of Buchanan and Andersen & Hovland are injuries to tangible property within the coverage of the policy of insurance sold by Safeco to Munroe.
The second issue raised concerns the following exclusion:
“This insurance does not apply:
¡ < * # *
“(d) to property damage * * * (6) to the named insured’s products arising out of such products or any part of such products * .* *.”
Safeco asks this Court to construe the language of the exclusion by reading it in the alternative:
This insurance does not apply to (a) property damage of the named insured’s products or (b) property damage arising out of such products or any part of such products.
As so construed, the injury to the wheat fields obviously arose out of Munroe’s product, the seed, the exclusion is applicable, and there is no coverage under the policy. Perhaps if the exclusion were punctuated or phrased in another manner it would have that effect. But, as written, the exclusion has reference solely to property damage to the named insured’s products.
By substituting the policy definitions for “property damage” and “named insured’s products”, the exclusion reads:
This insurance does not apply to injury to or destruction of tangible property to the goods or products manufactured, sold, handled or distributed by the named insured or by others trading under his name including any container thereof arising out of such products or any part of such products.
The court in Northern Grain said, at page 368:
“Finally, St. Paul contends that irrespective of any ‘injury to * * * property’ which may conceivably exist, coverage is nevertheless precluded under the exclusion of ‘injury to or destruction of * * * (3) any goods, products or containers thereof manufactured, sold, handled or distributed by the Insured * * *.’ Thus St. Paul equates the wheat crop of Northern’s customers with the seed wheat sold by Northern, and refuses to recognize a distinct and separate identity between the two.
“We refuse to accede to the argument that the wheat crop was merely the seed in changed form and therefore encompassed within the exclusionary clause. By virtue of the germination process involved in the production of wheat, a transformation did, in fact, occur so as to constitute the wheat crop a separate and distinct entity from the original seed wheat.
‘ ‘ Considered in its proper perspective, the function of the ex- elusionary clause denying coverage of damages for ‘injury to or destruction of * * # any goods, products or containers thereof manufactured, sold, handled or distributed by the Insured * * * ’ is clear. Such a provision denies coverage to an insured for damages occasioned to his own goods or work product by reason of its internal defectiveness. The exclusionary clause, however, has no reference to damage to property other than the insured’s goods or prod/ucts or other accidental loss resulting from the defective condition of the insured’s work product.” (Emphasis supplied.)
Although we have no knowledge of why exclusion (d) (6) was inserted in the instant policy, it appears likely that it was for the reason stated by the court in Northern Gram.
[5] Safeco’s third contention is that the district court erred in granting defendants ’ motion to strike from the amended complaint the allegations regarding the existence of a so-called “Misdelivery of Seed” endorsement.
The allegation which was stricken by the district court reads as follows:
“Plaintiff had available for inclusion in such a policy upon payment of an additional premium therefor its ‘Misdelivery of Seed’ endorsement, a copy of which is attached marked ‘Exhibit B’. Defendant [D. E. Munroe,] did not pay for and did not receive such a ‘Misdelivery of Seed’ endorsement and the same is not a part of the contract of insurance entered between the parties. ’ ’
[6] ....There is no contention advanced by Safeco that Munroe was offered such an endorsement or even aware of the existence of such an endorsement. Yet it is advocated by Safeco that this endorsement or its absence, is evidence of the intention of the parties to the insurance contract.
Section 13-05, E.C.M. 1947, provides:
“When a contract is reduced to writing, the intention of the parties is to be ascertained from the writing alone, if possible; subject, however, to the other provisions of this chapter.”
This statute makes it clear that, in Montana, a contract is to be interpreted within its four corners and not by reference to extraneous matters, as Safeco would have this Court do. In Home Ins. Co. v. Pinski Bros., Inc., 156 Mont. 246, 258, 479 P.2d 274, we stated:
“* * * Where the policy is unambiguous, the terms and coverage of the policy must be determined by its language alone and extrinsic evidence is inadmissible to establish its meaning. Section 13-704, R.C.M. 1947; James v. Prudential Ins. Co., 131 Mont. 473, 312 P.2d 125; Kansas City Fire & Marine Ins. Co. v. Clark (D.C. Mont.), 217 F. Supp. 231 (1963) affirmed 9 Cir., 329 F.2d 647; Glacier Gen. Assur. Co. v. State Farm Insurance Co., 150 Mont. 452, 436 P.2d 533. * * *”
We hold that the policy provisions in issue were not ambiguous and that the district court properly struck the allegations in Safeco’s amended complaint regarding the “Misdelivery of Seed” endorsement.
Finding coverage under the policy, Safeco’s duty to defend the actions brought by Buchanan and Andersen & Hovland against Munroe follows from the language of the policy:
“* * * The company shall have the right and duty to defend any suit against the insured seeking damages on account of such bodily injury or property damage * *
Safeco’s fifth argument goes to the question of whether or not the district court erred in making its order allowing discovery proceedings to continue in the two basic actions pending the appeal of this action. However, since no discovery proceedings have taken place since this Court’s order staying the same, this question is moot.
Because of the view we have taken of the foregoing issues, we deem it unnecessary to discuss any of the other issues raised by the parties.
The summary judgment of the district court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES JOHN C. HARRISON and HASWELL concur.
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PER CURIAM.
Application for writ of supervisory control filed by Gerald F. Davis, an inmate of the Montana State Prison, appearing pro se.
The basis for this petition arises from the ease of State v. Gerald F. Davis, Defendant, presently being appealed to this Court. To prosecute such appeal this petitioner sought the appointment of counsel and counsel was appointed by the District Court for that purpose and is presently engaged in representing petitioner before this Court. Since petitioner is represented by counsel this Court will not entertain petitions filed personally since he has counsel for that purpose.
The petition is denied.
|
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DECISION
The application of the above-named defendant for a review of the sentence of ten years for First Degree Burglary imposed on July 19, 1962, was fully heard and after a careful consideration of the entire matter it is decided that:
The sentence be and remain as originally imposed.
Since the presumption is that the sentencing judge was correct in his determination, we are unable to say that the sentence was not sufficiently lenient,. particularly when it is considered that the crime itself carries a possible penalty of 15 years imprisonment, and the defendant has a record of 4 prior felony convictions for robbery, burglary and grand larceny, which, if used, could have resulted in imprisonment for life or years without limit. It is further noted that he is a parole violator with respect to his present sentence.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
|
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
Plaintiff appeals from a summary judgment granted by the district court of Blaine County in favor of defendant.
In February 1973 defendant Orin R. Cure, as executor of the estate of Chris G. Mayer, deceased, filed a return of sale and a motion for an order confirming sale of real estate made under a power of sale contained in the will of Chris G. Mayer. Two parcels of land were involved, one located in Liberty County, the second located in Blaine and Chouteau Counties. The return of sale recited that the Liberty County land had been sold to Ralph I. Sehanbacher, Burton 0. Croft and Ray Delaney for $467,700, subject to confirmation of the court. The return noted that these purchasers had been obtained by Donald K. Meech, a licensed real estate broker. It also noted that Executor Cure had agreed that if the purchaser procured by the broker made the highest and best offer that Cure would recommend to the court and request that the court allow such broker a $23,000 commission for obtaining a purchaser.
At the hearing on the return of sale of the Liberty County land after considerable bidding by numerous parties, the property was sold to the highest bidder, Walter Passage Farms, Inc. for the sum of $520,000. The court accepted the highest bid and did not award any broker’s commission. Thus, any commission for a sale, if any was owed, did not mature. Plaintiff’s prospective buyers did not buy.
The executor’s return of sale as to the Blaine County land disclosed that a sale of the land had been made by the executor, subject to confirmation, to Charles Hodson and John Mitchell for $958,000. The return noted that no real estate broker was involved in the Blaine County property sale and did not request the payment of any broker’s commission.
As was the ease in Liberty County the bidding on the Blaine County property was lively. This property was bid in by Mich-ell and Hodson for $958,000 and Cure requested the court to confirm the sale. However, at the confirmation hearing a written bid ten percent in excess of the $958,000 was offered and the court opened the sale to further bidding. Ultimately the Blaine County property was sold to Mr. Schanbacher and Mr. Croft for $1,110,000. No real estate broker was involved in this property; although the same persons were the prospective buyers on the Liberty property.
Prior to the death of Chris Mayer he had listed his Blaine County property for sale with the Flynn Bealty of Havre, Montana. Meech was contacted by Flynn and given an opportunity to find a purchaser and one of such persons contacted was Schanbacher, who became interested in purchasing that property. Following the death of Chris Mayer executor Cure, after being made aware of plaintiff’s efforts, agreed that if a purchaser procured by plaintiff made the highest and best offer for the property then Cure would petition and request the court to allow a real estate commission of 5%.
The instant actioir was brought by Aronow, Anderson & Beatty of Shelby, Montana on behalf of plaintiff Meech some four months after the sale occurred and the commission was refused. After summary judgment was granted defendant, plaintiff substituted the law firm of Jardine, Stephenson, Blewett and Weaver of Great Falls in his behalf, and after various motions including a motion for relief from summary judgment, which was denied, this appeal was taken.
Several issues are brought by plaintiff on appeal which we will summarize in this manner:
1. Was summary judgment improperly taken considering the state of the pleadings?
2. Does the statute of frauds bar a claim for a commission under tbe facts?
The listing agreement relied on by plaintiff runs from the decedent to the Flynn Realty of Havre, Montana. Plaintiff knew that only the Blaine County land was listed on said agreement and in his affidavit in support of a motion for relief from summary judgment he stated that “Mr. Cure took the position that all rights which your affiant may have acquired under said listing agreement terminated upon the death of Mr. Mayer # *
Therefore, plaintiff knew when, he filed his complaint the terms of the agreement and was aware that Cure contended there were no enforceable rights thereunder. In addition, at the hearing on the motion for summary judgment plaintiff’s counsel stipulated in open court that there was no written agreement to pay a real estate commission.
While plaintiff sets forth several contentions as issues we believe the question of whether or not summary judgment was proper will answer the contentions.
In regard to the granting of summary judgments it has long been established in Montana that the moving party has the burden of establishing that there is no genuine issue of fact to be resolved before such summary judgment will be granted. However, when the record discloses no issue as a material fact, then the burden is on the party opposing the motion to present evidence of a material and substantial nature raising a genuine fact. Mustang Beverage Co. v. Schlitz Brewing Co., 162 Mont. 243, 511 P.2d 1; Pack River Co. v. Young, 162 Mont. 271, 511 P.2d 12.
Here, plaintiff at no time prior to summary judgment questioned that the case was not ready for summary judgment. Then, after adverse trial court determination, sought relief without new facts or amended pleadings. As noted by defend ant in Ms brief, plaintiff claims error, solicits reversal tbrongb legal speculation on a “multiple choice basis” as to the sufficiency of his “theories of relief”. The only new matter suggested to the court for its consideration was the listing agreement between Chris Mayer and the Flynn Realty Co. which all parties recognized as having expired with the death of Chris Mayer. Section 2-305, R.C.M.1947. Trenouth v. Mulroney, 124 Mont. 499, 227 P.2d 590; 28 A.L.R.2d 1243; 2A C.J.S.Agency § 7; 3 Am.Jur.2d Agency §§ 60-67.
We will not further discuss the various legal theories propounded by plaintiff to take his case out of summary judgment, other than to add that we find no error on the part of the trial court. The court had before it the only sigmficant issue raised by the pleadings or available to the plaintiff at the time of the summary judgment which was: Whether defendant was liable to pay the plaintiff a commission absent a written agreement to pay such a commission. The law is clear on this point. By statute, a broker may not collect a realtor’s commission absent a valid written agreement.
In addition, plaintiff did not even claim defendant agreed to pay a commission but he premised his allegation on the statement of defendant that he would “petition the court”. Clearly plaintiff had no case and summary judgment was properly granted.
Judgment is affirmed.
MR. JUSTICES DALY, CASTLES and HASWELL and PAUL HATFIELD, District Judge, sitting for MR. CHIEF JUSTICE JAMES T. HARRISON, concur.
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MEMO OPINION
PER CURIAM.
Defendant in this cause has filed a petition for post-conviction relief. Defendant had appealed his conviction to this Court and it Avas affirmed. See State v. Jensen, 153 Mont. 233, 455 P.2d 631.
In his petition defendant asserts that his sentence and the proceedings whereby it was procured Violated the due-process and equal protection clauses- of the 14th Amendment to the United States Constitution, in that:
1. Section 94-4106, R.C.M.1947, as applied to this case and the sentence imposed constituted cruel and unusual punishment ; . . . •
• 2. Said section 94-4106, R.C.M.1947, as. applied to his case is vague and without standards;
3. The State called for production of evidence by the defendant before he testified; and
4. The State- forbid defendant and his counsel from interviewing witnesses called by the State.
Section 94-4106, R.C.M.1947, reads: “Any person over the age of eighteen (18) years, who shall wilfully and lewdly commit any lewd and lascivious act, other than .the acts constituting other crimes provided in section 94-4101 tó 94-4108, upon or with the body or any part or member thereof, of a child under the age of sixteen (16) years, with the intent of arousing, appealing to, or gratifying the lust or passions or sexual desires of such person, or of such child, shall be guilty of a felony, and shall be imprisoned in the state prison hot exceeding twenty-five (25) years.”
This statute was originally enacted as Sec. 1, Ch. 59, Laws of 1913, and remains substantially the same today except that the penalty was increased by Sec. 1, Ch. 57, Laws of 1959. The constitutionality of this statute was upheld in State v. Kocher, 112 Mont. 511, 119 P.2d 35. There is nothing cruel or unusual about a sentence confining one to the state prison for the commission of a felony.
The second contention that the statute is vague and without standards is without merit. As stated by this Court in the Kocher case, supra, the elements of the crime as set forth in the statute are: first, the offender must be over the age of 18 years; second, a lewd or lascivious act must have been committed upon, or with the body or any part or member thereof, of a child-under 16 years of age; and third, the act must have been committed with the intent of arousing, appealing- to, or- gratifying the-lust or passions or sexual desires of the accused or the child. There is nothing vague about this language and the standards are specifically set forth.
As - to the request by the State for the production of evidence.by defendant before he testified, it is true as disclosed by the quote from the record that the prosecution stated: “We will call upon the doctor to produce that card.” No objection was made to this request, in fact counsel for the defendant stated: “We have the case history here and we will be glad to give it to you.” However, even if we were to concede, arguendo, that the State should not have1 made any such request, what prejudice resulted? None. Defendant willingly furnished what was requested without any objection whatever.
The final assertion, that the State forbid the defense from interviewing witnesses. In support of this charge defendant submits excerpts from the trial transcript of cautionary remarks made by the trial judge to witnesses, advising them not to talk with anyone about the case on trial and if they desired advice as to the proper thing to do in any such situation they should consult the county attorney. Thus it was the statements of the tidal judge rather than any remarks made by the prosecution that are cited in support of the contention. These matters were considered by this Court upon the appeal as indicated by the following paragraph from our opinion:
“During the course of the trial the court on several occasions gave instructions to the witnesses and made other comments, some of which may have implied to the jury that the court felt the witnesses were telling the truth. We find no merit in appellant’s argument on this issue. At no time did his counsel object to these comments. The leading ease in Montana on comments by the court is State v. Dixson, 80 Mont. 181, 260 P. 138 (1927). In that case objection to the "comment was made immediately and wé see no reason why that should not have been done here. The general rule is that the lower court cannot be put in error with an issue raised'for the-first time on appeal. State v. Campbell, 146 Mont. 251, 405 P.2d 978 [22 A.L.R.3d 824] (1965).”
There being no merit to any of the contentions made by the defendant his petition for post-conviction relief is denied. •'
|
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JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal from an order of the Thirteenth Judicial District Court, Yellowstone County, Montana, which granted summary judgment to the respondent. The action arose from a negligence claim involving a student who was injured while attempting a teacher-supervised weight lifting maneuver at his junior high school. The District Court denied appellant’s motion for relief from judgment under Rule 60(b), M.R.Civ.R We reverse.
We restate the issues presented by the parties as follows:
I. Whether the District Court properly granted summary judgment to the School District on the basis of immunity.
II. Whether the District Court properly denied the plaintiff’s Motion for Relief from Judgment pursuant to Rule 60(b) of the Montana Rules of Civil Procedure.
In mid-October, 1985, John Koch (Koch), then fifteen years old, was injured while attending a physical education class at Castle Rock Junior High School. Koch’s teacher, Fred Brautigan (Brautigan), instructed Koch to squat-press weights totalling 360 pounds. Koch apparently protested but was instructed to try lifting the weight. After attempting to stand from a squatting position with the 360 pounds on his shoulders, Koch could not sustain the weight and collapsed. The weight pinned Koch for several seconds before Brautigan could remove it. Koch allegedly suffered a bulged disc, lumbar sprain, spinal nerve compression and other related injuries, including a mental condition of depression.
Koch initiated suit against three defendants: 1) The Board of Trustees (the Board); 2) the teacher Brautigan; and 3) School District No. 2 (School District).
On April 12, 1989, the District Court granted partial summary judgment to the Board and Brautigan pursuant to § 2-9-305, MCA. The School District, the only remaining defendant, moved for summary judgment based on § 2-9-111, MCA (1989). Koch opposed this motion for summary judgment and moved for reconsideration of the previous partial summary judgment. On February 7, 1990, the District Court granted summary judgment to the School District based on Eccleston v. Third Judicial Dist. Court (1990), 240 Mont. 44, 783 P.2d 363, [8 Ed.Law 146g]. Koch did not appeal from either summary judgment.
Subsequently, this Court decided various cases addressing § 2-9-111, MCA, including Crowell v. School Dist. No. 7 (1991), 247 Mont. 38, 805 P.2d 522 [,9 Ed.Law 76]; and Hedges v. Swan (Mont. 1991), [248 Mont. 365,] 812 P.2d 334, 48 St.Rep. 449 [.10 Ed. Law 113], On March 15, 1991, Koch filed a motion for relief from judgment, which was deemed denied since the District Court did not act on the motion within forty-five days. Koch appealed to this Court on June 25,1991, desiring relief from the order granting summary judgment, and a trial on the merits.
RELIEF UNDER RULE 60(b), M.R.Civ.P.
We first address the ability of a court to offer relief from judgment under Rule 60(b), M.R.Civ.P., which is nearly identical to the equivalent Federal rule, Rule 60(b), F.R.Civ.P.
The provisions of this rule must be carefully interpreted to preserve the delicate balance between the sanctity of final judgments, expressed in the doctrine of res judicata, and the incessant command of the court’s conscience that justice be done in light of all the facts.
Bankers Mortgage Co. v. United States (5th Cir. 1970), 423 F.2d 73, 77 (emphasis in original).
Rule 60(b), M.R.Civ.P, sets forth the reasons under which the “court may relieve a party or a party’s legal representative from a final judgment, order, or proceeding.”
Koch claims that subsections (5) and (6) of Rule 60(b) are applicable to the case at bar:
(5) the judgment has been satisfied, released, or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or (6) any other reason justifying relief from the operation of the judgment.
Rule 60(b), M.R.Civ.P. (emphasis added).
A careful reading of the statute discloses the word “or” at the end of subsection (5) which we have emphasized. “[I]t is generally held that if a party seeks relief under any other subsection of Rule 60(b), it cannot also claim relief under 60(b)(6).” Libby Rod & Gun Club v. Moraski (D. Mont. 1981), 519 F.Supp. 643, 647. Accordingly, Koch erroneously attempted to qualify under both subsections. Koch’s Rule 60(b) motion should have claimed that the motion could fall under either subsection (5) or (6), but not both, since the two are mutually exclusive.
APPLICABILITY OF RULE 60(b)(5)
Koch claims that subsection (5) of Rule 60(b) applies to the case at bar because of the change in law regarding immunity. This change is best explained by an overview of relevant case law and legislative amendments. In 1990, we held that a school district was immune from suit when a janitor failed to clear ice and snow from a gym stairway where a plaintiff slipped and sustained injuries. Eccleston v. Third Judicial Dist. Ct. (1989), 240 Mont. 44, 783 P.2d 363. The question of whether the School District had insurance was discussed in Eccleston, 240 Mont. at 61, 783 P.2d at 373, Justice John C. Sheehy, in his dissent, noted:
There is a sardonic element in this case. The real party in interest shouting “governmental immunity” is probably an insurer. It sold a policy to the school district, promising coverage for comprehensive liability. Because of this Court, the insurer was never at risk for any wrongful acts of the school district personnel outside of motor vehicles. Its premium is pure gravy ....
Then, In 1991, this Court held that a school district’s immunity was waived by the existence of Lability insurance, to the extent of such insurance. Crowell v. School Dist. No. 7, Gallatin Cty. (1991), 247 Mont. 38, 805 P.2d 522.
In the case at bar, the District Court relied on Eccleston when granting the School District’s motion for summary judgment. Due to the state of the law at that time, Koch did not appeal. After our holding in Crowell, Koch identified the change in the status of immunity and applied for relief from judgment under Rule 60(b)(5), M.R.Civ.P.
Koch is correct in observing that a change has taken place in the area of immunity law, however this is not a valid reason under which a Rule 60(b)(5) motion may be granted. We have previously said that a change in decisional law after final judgment, does not represent extraordinary circumstances under Rule 60(b) so as to allow reopening of that judgment. We have also held:
In Fiscus II [Fiscus v. Beartooth Elec. Cooperative, Inc.] (1979), 180 Mont. 434, 439, 591 P.2d 196, 199] this Court stated "... only in an extraordinary case should Rule 60(b) be granted. There is considerable authority holding that when a decision is later overruled by a court, that it is not ‘extraordinary*...” 591 P.2d at 199 (citing cases). We went on to note:
“ ‘... that while 60(b)(5) authorized relief from a judgment on the grounds that a prior judgment upon which it is based has been reversed or otherwise vacated, it does not authorize relief from a judgment on the ground that the law applied by the court in making its adjudication has been subsequently overruled or declared erroneous in another and unrelated proceeding.... (citations omitted) ... there is ample support in the federal courts ... that when a decisional law change occurs, subsequent to final judgment in a particular case ... final judgment should not be altered.” 591 P.2d at 200.
State ex rel. Rhodes v. Dist. Ct. (1979), 183 Mont. 394, 396, 600 P.2d 182, 183 (emphasis added).
At first blush the meaning of the term “prior judgment” in Rule 60(b)(5) could lead one to conclude that if any case relied upon later was reversed or otherwise vacated, the rule would permit relief from judgment. According to the above quotes from Fiscus II and Rhodes, this is not what is meant by “prior judgment.” “The ‘prior judgment’ clause is limited to cases in which the present judgment is based on the prior judgment in the sense of res judicata or collateral estoppel; it does not apply when... the prior judgment has been relied on merely as precedent.” 3 J. Moore, Moore’s Manual of Federal Practice and Procedure, Section 26.08, pp. 26-34, footnote 10 (1989).
Reliance on a judgment in an unrelated case ... does not make the original judgment vulnerable within the “prior judgment” clause of subsection 5. Lubben v. Selective Service System Local Board No. 27, supra, 453 F.2d at 650; see 11 C. Wright & A. Miller, supra § 2863, at 204 (“[t]his ground [subsection (5)] is limited to cases in which the present judgment is based on the prior judgment in the sense of res judicata or collateral estoppel. It does not apply merely because a case relied on as precedent... has since been reversed”); cf. Ackermann v. United States, supra, 340 U.S. at 197-99, 71 S.Ct. 209; Chicot County Drainage District v. Baxter State Bank, supra, 308 U.S. at 374-78, 60 S.Ct. 317.
Marshall v. Board of Ed., Bergenfield, N.J (3rd Cir. 1978), 575 F.2d 417, 424.
SineeEccleston and Crowell are unrelated to the case at bar, Koch’s claim under Rule 60(b)(5), M.R.Civ.P., which relies on the change of law in those cases, fails.
We also mention that Koch cannot prevail by arguing a change in the law under the last phrase of subsection (5) which states that “it is no longer equitable that the judgment should have prospective application.” In Libby Rod & Gun Club v. Moraski (D. Mont. 1981), 519 F.Supp. 643, 647, merely arguing that the law had changed did not result in relief from judgment under the last phrase of subsection (5), nor can it here.
APPLICABILITY OF RULE 60(b)(6)
Koch also claims that relief from judgment is possible under subsection (6) of Rule 60(b). Subsection (6), sometimes called the “other reason clause,” is a residual clause in which the court can use its equitable power to achieve justice under an appropriate set of circumstances.
[T]he language of the “other reason” clause, for all reasons except the five particularly specified, vests power in courts adequate to enable them to vacate judgments whenever such action is appropriate to accomplish justice.
Klapprott v. United States (1949), 335 U.S. 601, 614-615, 69 S.Ct. 384, 390, 93 L.Ed 266, 277.
In Overbee v. Van Waters & Rogers (6th Cir. 1985), 765 F.2d 578, the Ohio Supreme Court essentially changed the effective date of a statutory change by the legislature regarding contributory and comparative negligence. The change took place close in time to the Overbee proceedings (judgment, first appeal and remand), which affected substantially the plaintiff’s claims. The court granted relief under Rule 60(b)(6), F.R.Civ.P, on the grounds that the circumstances constituted extraordinary circumstances and because without it substantial justice would not be served. Overbee, 765 F.2d at 580. The Overbee court held “that the mere showing of a change in the law is not enough to demonstrate such an extraordinary situation when the judgment has become final .... However, we are of the opinion that the unique facts of this case compel the granting of the motion ....” Overbee, 765 F.2d at 580.
Similarly, extraordinary circumstances were identified in Adams v. Merrill Lynch Pierce Fenner & Smith (10th Cir. 1989), 888 F.2d 696. In Adams, after a dispute over an arbitration issue the district court granted Lynch’s motion under Rule 60(b)(6). Adams, 888 F.2d at 702. The court said that “a change in relevant case law by the United States Supreme Court warrants relief under Rule 60(b)(6).” (Citing cases.) Adams, 888 F.2d at 702.
In Klapprott, a naturalization case, circumstances were such so as to justify granting a Rule 60(b)(6) motion since there would be a furtherance of justice. Klapprott v. United States (1949), 335 U.S. 601, 69 S.Ct. 384, 93 L.Ed 266.
These cases are germane to the case at bar because they are examples of “extraordinary circumstances” warranting relief from judgment via subsection (6) of Rule 60(b), M.R.Civ.R In addition to the relevancy of these cases, we also acknowledge and consider the insurance reference in Justice John C. Sheehy’s dissent in Eccleston which could be mistakenly interpreted. The mention of insurance in the dissent and no mention of it in the majority opinion could be misleading, inasmuch as such reference could be interpreted that insurance was a consideration in the case. It was not.
Therefore, with guidance from Overbee, Adams, and Klapprott, and after careful consideration of the facts and circumstances present in the case at bar, we hold that relief from judgment under subsection (6) of Rule 60(b) is warranted. In arriving at this conclusion, we point out the discretion of the court in granting relief under Rule 60(b) as evidenced by the use of the word may; the court may relieve a party from a final judgment, order or proceeding. Savarese v. Edrick Transfer & Storage, Inc. (9th Cir. 1975), 513 F.2d 140, 146. From the aforementioned cases, we conclude that due to facts and circumstances, and in the furtherance of justice, Koch’s motion was proper under Rule 60(b)(6) and the District Court erred in not granting it. We again carefully emphasize the limited nature of this decision and it does not establish a general rule for reopening a final judgment merely because there has been a subsequent change in the law upon which that judgment was based. Only when extraordinary circumstances are found to exist, as in the present case, may Rule 60(b)(6), M.R.Civ.P., be used to modify a final judgment.
TIMELINESS OF MOTION UNDER RULE 60(b)
Another important requirement of Rule 60(b), M.R.Civ.P., is that the motion must be timely made. Rule 60(b) indicates that a motion based on subsections (1), (2) or (3) must be made within a structured time frame. However, the Rule makes no specific provision for the timely filing of a motion under the remaining subsections. Instead, a motion -under the remaining subsections (4), (5) and (6) must be made “within a reasonable time.” A reasonable time can only be determined when considering the facts of each case. United States v. Holtzman (9th Cir. 1985), 762 F.2d 720, 725. We previously said that:
Any time limitations that may be involved in this case require that a balance be struck between the public interest in putting an end to litigation at some point and the public interest in keeping its judicial system free from corruption. For this reason the timeliness of the motion to vacate must ultimately depend upon equitable principles and placed within the sound discretion of the court.
Selway v. Burns, Estate of Burles (1967), 150 Mont. 1, 10, 429 P.2d 640, 645.
The School District argues that since Koch filed his Rule 60(b) motion over a year after summary judgment was granted, it was not filed within a reasonable time. Respondent’s argument is unpersuasive. Koch filed his Rule 60(b) motion on March 15, 1991, forty-eight days after our Crowell opinion, which changed the law in the immunity area particularly when liability insurance was involved. Under the circumstances, and in light of our discretion, we do not find the timing of Koch’s motion to be unreasonable. Accordingly, Koch’s motion was not only proper but also timely.
STATUTORY CHANGES IN THE AREA OF GOVERNMENTAL IMMUNITY
Absent from either the School District’s or Koch’s appellate briefs, but dispositive in this case, is the amended version of § 2-9-111, MCA. The amended statute essentially makes the parties’ immunity arguments moot. The legislature amended the statute soon after our opinions of Crowell and Hedges, which, in essence, responded to our interpretation of § 2-9-111, MCA, as it existed at that time. The 1991 changes in the statute clarified legislative intent and our interpretation changed accordingly as explained in Dagel v. City of Great Falls (Mont. 1991), 819 P.2d 186, 48 St.Rep. 919,. The legislature deemed the statute retroactive to all cases not final by May 24, 1991. Dagel, 819 P.2d at 191, 48 St.Rep. at 922.
In the case at bar, the summary judgment granted in favor of the School District became final when Koch did not appeal within thirty days from the judgment. This was prior to the retroactive effective date of the amended statute which was May 24, 1991. However, according to our previous discussion of Rule 60(b)(6) herein, we have reopened the judgment which makes the status not final. Accordingly, the current, newly amended statute is now applicable, as interpreted in Dagel.
Dagel is particularly germane since it deals with the amended statute which is the primary focus of the case at bar. We recite the purpose of the amended statute in Dagel as:
AN ACT CLARIFYING THAT STATUTORY LEGISLATIVE IMMUNITY EXTENDS ONLY TO LEGISLATIVE BODIES OF GOVERNMENTAL ENTITIES AND ONLY TO LEGISLATIVE ACTIONS TAKEN BY THOSE BODIES; CLARIFYING THAT GOVERNMENTAL ENTITIES ARE NOT IMMUNE UNDER THE LEGISLATIVE IMMUNITY STATUTE FOR NONLEGISLA-TIVE ACTIONS; CLARIFYING THAT THE ACQUISITION OF INSURANCE DOES NOT WAIVE IMMUNITY; AMENDING SECTION 2-9-111, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.
Dagel, 819 P.2d at 191, 48 St.Rep. at 921.
Section 2-9-111, MCA(1991), significantly changed the statute and therefore modified the theories expressed in the various immunity cases as well as in Crowell with regard to insurance. First, under the new statute, a legislative body is not immune from the negligent acts of its employees. § 2-9-lll(l)(c), MCA (1991). Second, the purchase of insurance does not waive immunity. § 2-9-111(4), MCA (1991).
Dagel, 819 P.2d at 191, 48 St.Rep. at 922.
According to Dagel the School District (the legislative body) is not immune for the negligent acts of its employees. Whether the teacher’s acts amount to negligence in the case at bar is a question of fact which must be determined in a trial on the merits upon remand. Clearly, the teacher’s acts of instructing Koch to squat-press 360 pounds of weight are not legislative acts and are not immune under the meaning of the current version of § 2-9-111, MCA.
Both parties also make much out of the purchase of liability insurance because of our holding in Crowell where we said that the purchase of liability insurance should waive immunity to the extent of the insurance coverage. The new statute deals directly with the Crowell situation and states that “the acquisition of insurance coverage, including self-insurance or group self-insurance, by a governmental entity does not waive the immunity provided by this section.” Section 2-9-111(4) MCA (1991). This provision effectively overrules the Crowell line of cases regarding liability insurance, although the Crowell decision does give an excellent chronological history of governmental immunity that should not go unnoticed.
FAILURE TO APPEAL
The School District argues that Koch voluntarily chose not to appeal and now, a year after final judgment, should not be granted another bite at the apple. Generally, failure to appeal for almost any reason is fatal to a motion to reopen judgment under Rule 60(b). If allowed, it would in essence make a Rule 60(b) motion a substitute for appeal, which is an improper use of the motion. Donovan v. Graff (1991), 248 Mont. 21, 808 P.2d 491. In criticizing a party’s failure to appeal the United States Supreme Court said:
Petitioner made a considered choice not to appeal, apparently because he did not feel that an appeal would prove to be worth what he thought was a required sacrifice of his home. His choice was a risk, but calculated and deliberate and such as follows a free choice. Petitioner cannot be relieved of such a choice because hindsight seems to indicate to him that his decision not to appeal was probably wrong, considering the outcome of the Keilbar case. There must be an end to litigation someday, and free, calculated, deliberate choices are not to be relieved from.
Ackermann v. United States (1950), 340 U.S. 193, 198, 71 S.Ct. 209, 211-212, 95 L.Ed 208, 210-211.
Even so, failure to appeal may not be fatal. The United States Supreme Court acknowledged the importance of Ackermann but also said:
Despite the relevant and persuasive force of Ackermann, however, we need not go so far here as to decide that when an appeal has been abandoned or not taken because of a clearly applicable adverse rule of law, relief under Rule 60 (b) is inflexibly to be withheld when there has later been a clear and authoritative change in governing law ....
Polites v. United States (1960), 364 U.S. 426, 433, 81 S.Ct. 202, 206, 5 L.Ed.2d 173, 177. The Ninth Circuit Court recently held, after considering individual case facts and after meeting the standards for relief under Rule 60(b)(6), that a failure to appeal did not bar relief under the rule. United States v. Wyle (9th Cir. 1989), 889 F.2d 242. We also note that Rule 60(b) (6) is not inflexible.
[I]t ordinarily is not permissible to use this motion to remedy a failure to take an appeal. However this is not an inflexible rule and in unusual cases a party who has not taken an appeal may obtain relief on motion ... [Courts] have acted on the premise that cases of extreme hardship or injustice may be brought within a more liberal dispensation than a literal reading of the rule would allow
Wright and Miller, Federal Practice and Procedure, Vol. 11, § 2864, pp. 214-215, 219-220. Accordingly, we find that Koch’s failure to appeal is not fatal, and because of the non-final status of his case, due to our granting of his Rule 60(b)(6) motion, the current amended version of § 2-9-111, MCA, and law in Dagel is controlling.
CONCLUSION
Because of the amended immunity statute and our foregoing analysis reversal is proper.
Therefore, we remand to the District Court for a trial on the merits with instructions to take specific notice of the amended version of the immunity statute, § 2-9-111, MCA, and the Dagel case.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, McDONOUGH and TRIEWEILER concur.
In Overbee, on June 20, 1980, the Ohio legislature changed relevant statutory provisions from contributory negligence to comparative negligence. After some confusion over whether the change applied to actions that accrued after June 20, 1980, orto actions that were actually tried after that date, the Ohio Supreme Court decided that the change only applied to causes of action accruing after June 20, 1980. Since the plaintiffs claim accrued prior to June 20,1980, even though trial was held in 1981, the change was unhelpful to the plaintiffs action. Subsequently, the Ohio Supreme Court reversed itself and held that the change from contributory to comparative negligence was applicable to any actions that came to trial after June 20,1980. These facts constituted “extraordinary circumstances.”
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is a special proceeding in which relator seeks a writ of supervisory control or other appropriate writ dismissing the contest of probate of will in respondent court.
On August 12, 1969 relator appeared through counsel and was heard by this Court ex parte. On that day we ordered the respondent to appear on September 2, 1969, to show cause why an appropriate writ should not issue. Due to the unusual circumstance that the respondent district court, Dept. No. 1, is vacant, the Honorable E. E. Fenton having become deceased, it was ordered that the real party in interest, the contestant Melvin E. Renstrom, be served through counsel so that he could respond to the order to show cause as respondent:' On September 2, 1969 both parties appeared and gave oral argument.
The facts leading up to this proceeding are as follows.-The will of John S. Craig, deceased, was admitted to probate on November 25, 1968. Relator was appointed executor of the estate on that date. Melvin E. Renstrom, an alleged heir of the estate, notified relator on April 17, 1969 he was going to file a petition contesting probate of the will. He did not file such petition until after 5:00 p.m., May 26, 1969, and the clerk refused to issue a citation without an order from the court. On May 27, 1969 the respondent court ordered the clerk to issue the requisite citation which was subsequently served upon relator the same day. Relator thereafter, on May 29, 1969, moved the respondent court to dismiss the contest on the ground that the issuance of the citation was one day after the six months allowed by law within which to bring a contest action. Respondent court denied the motion and instead made, in effect, a nunc pro tunc order that the date of the citation be changed to read the 26th of May rather than the 27th of May. The court’s reasoning for this order appears to be that since the clerk refused to issue the citation directly to the contestant without first having obtained an order from the judge this was contrary to the law, section 91-4306, R.C.M.1947, which allows the clerk to issue citations without an order from the judge. Thus, respondent-contestant argues that the court was,-:,merely correcting an error made by the clerk and this, he says, is completely within the equitable power of the court where there is a mere technicality involved.
• Eelator argues that this type of order is beyond the jurisdiction of the court and that the petition for will contest should have been dismissed because the statute of limitations had run. With this we agree.
The sole issue presented for our determination is whether the district judge has the power to issue a nunc pro tunc order backdating a citation which the clerk of court mistakenly refused to issue without an order of court thereby allowing the time under the statute of limitations to elapse.
The statute of limitations for contesting the will in this case ended on May 26, 1969. Thus, if the citation was not issued on that day then no contest could take place. Estate of Fiedler, 140 Mont. 22, 367 P.2d 560; Estate of Willner, 147 Mont. 538, 416 P.2d 24.
The power to issue a nunc pro tune order is inherent in the court. We stated the general rule as to such orders in State ex rel. Union Bank & Trust Co. v. District Court, 108 Mont. 151, 156, 91 P.2d 403, as follows:
“ ‘In case of an omission or error in the record, the power exists in the court to amend such record so that it shall conform to the actual facts and truth of the case; but a court cannot amend its record to correct a judicial error or to remedy the effect of judicial non-action.’ ”
In the Montana Federal District Court, Judge W. J. Jameson stated in Kelly v. Harris, 158 F.Supp. 243 (D.Mont.1958), at p. 247,
“It is the function of a nunc pro tunc order to ‘make the record speak the truth and the power to do so is inherent in the court, but in the exercise thereof the court may not do more than make its records correspond to the actual facts; it cannot under the guise of amending of minute entry correct any judi eial error it may have made, or cause an order or judgment that was never in fact made to be placed of record.’ Rae v. Brunswick Tire Corporation, 1935, 45 Ariz. 135, 40 P.2d 979, 979.”
Thus it is generally acepted that a nunc pro tunc order may be made to change the record where it is incorrect because of error. But such an order cannot be made where the record is correct. The citation here was dated the 27th of May, the day the court ordered its issuance, and it cannot later be backdated to the 26th because that simply was not the fact. On May 26, the clerk did not issue a citation, the judge did not make an order. Backdating does not correct the jurisdictional requirement of having the citation issue in the six month period.
Respondent court’s order denying relator’s motion to dismiss the will contest is hereby set aside and the contest of will is dismissed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES HASWELL and JOHN C. HARRISON, concur.
|
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ME. CHIEF JUSTICE ADAIR:
This is an appeal from a judgment of dismissal entered in a suit seeking to establish the validity of an alleged mechanic's-lien and to recover from defendants ■ the amount claimed due thereon.
Montana Fish Meal and Oil Corporation, a corporation, hereinafter called the fish corporation, undertook to extract oil from rough fish to be captured in the waters of Montana, and to make meal therefrom for use in feeding livestock. The enterprise was new to this state and involved considerable experimentation.
At the outset of the undertaking the officers of the fish corporation leased from the Montana Power Company approximately 1.14 acres of land on the bank of the Missouri Eiver near Great Falls, Montana. The lease was for the term of one year. It provided that it could be terminated by the lessee upon 90 days written notice to the lessor. It contained no provision for any renewal of the lease upon the expiration of the one-year term provided.
At first the fish corporation considered constructing a building, but later decided to delay such contemplated project until it could be determined whether or not sufficient quantities of fish could be caught at the site and if not the operations were to be moved to some other location on the Missouri river, for which reason it was determined that any plant used should be so designed that it could be moved when and if it should be deemed necessary or advisable.
Accordingly the fish corporation laid on top of the ground some 12"xl2" timbers on which it caused to be laid and nailed 2" planks thereby making a platform about 28 to 30 feet wide and about 50 feet long. The platform had neither foundation nor roof. On the platform the fish corporation placed various machines and appliances, including a hammermill, cooker, dryer, boiler and 10 to 12 electric motors, some of which were fastened to the platform by means of screws or bolts.
After the platform had been built and the machines and appliances placed thereon, certain electrical work and wiring was necessary to connect the machines so they could be operated .by electrical power. To install such wiring the fish corporation employed the plaintiff, Cascade Electric Co., Inc., a corporation.
The work of installing the wiring was commenced April 11, 1947, and completed June 12, 1947.
When plaintiff commenced its work it constructed on one side of the platform a wall about six or seven feet high and from fifteen to twenty feet long, which served as a sort of instrument board, where plaintiff attached certain electrical equipment including some electric switches, and to support it and prevent its being blown down by the wind, braces made of 2x4s were nailed thereto to give it added strength. There being no roof to protect the electrical equipment and switches from the rain and elements, some were, covered at times with canvas. The electrical wiring installed, by the plaintiff could readily be disconnected from the various machines and appliances to which it was connected.
By the time plaintiff completed its work, the fish corporation had run out of money so that it could not and did not pay plaintiff for the labor and materials supplied and on August 15, 1947, plaintiff filed in the office of the county clerk and recorder of Cascade county, a purported notice of lien wherein it stated that for the work and labor so performed the fish corporation became and is indebted to it in the sum of $1,239.57.
The fish corporation was likewise indebted to numerous other creditors for equipment and merchandise purchased and for money borrowed. Six of such creditors assigned their respective claims totaling $5,333.37, to the defendant, Associated Creditors, Inc., which assignee corporation on August 26, 1947, commenced suit against the fish corporation thereon.
Pursuant to a writ of attachment issued in the suit, a levy was made upon the machinery, appliances and other personal property of the fish corporation and subsequently judgment was rendered and entered against the fish corporation for the principal sum of $5,025 and costs amounting to $357.09. A writ of execution issued on the judgment by virtue whereof the defendant, D. J. Leeper as sheriff of Cascade county, levied upon, and, on October 28, 1947, sold at public auction for $6,046.59 all the machinery of the fish corporation. The property sold included a hammermill, cooker, dryer, boiler and various electric motors all taken from the large wooden platform on which they had been placed or from smaller movable platforms. The large wooden platform was not taken away. At the sheriff’s sale, the property was sold to the defendant, Associated Creditors, Inc., as the high bidder, and later by it disposed of to various persons.
At the time the Associated Creditors, Inc., commenced its action on August 26,1947, there was pending in the same district court, another action brought by the plaintiff, Cascade Electric Co., Inc., against the fish corporation to foreclose the claimed mechanic’s lien here involved. Subsequently however at the time of filing its reply herein on December 30, 1948, the plaintiff Cascade Electric Co., Inc., voluntarily dismissed the foreclosure suit.
On June 2, 1948, plaintiff instituted this suit against the defendants Associated Creditors, Inc., and D. J. Leeper as sheriff of Cascade county, complaining that in levying upon and selling the property of the fish corporation defendants had deprived the plaintiff of its right to realize upon its lien to plaintiff’s damage in the sum of $1,239.57 for which amount it prays judgment against defendants and also that its claimed lien be declared valid. The Montana Pish Meal and Oil Corporation was not made a party nor has it since become a party to the instant law suit and on December 6, 1947, the fish corporation was dissolved by its board of directors upon the ground that it had no assets and no intention of resuming operations.
Following a trial of the issues without a jury the court made and filed written findings of fact and conclusions of law. The court found as facts:
“I. That all of the goods, wares and merchandise furnished and delivered by the plaintiff and all the services alleged to have been performed by the plaintiff were furnished and performed for and on behalf of the Montana Pish Meal & Oil Corporation. That the contractual indebtedness for said goods, wares and merchandise or services has never been established in any action against said Montana Pish Meal and Oil Corporation and that the Montana Pish Meal & Oil Corporation is a necessary and indispensable party to this action.
“II. That the asserted mechanic’s and materialmen’s lien described in plaintiff’s complaint herein and offered in evidence over the defendants’ objection as plaintiff’s exhibit 3 is fatally defective and invalid in the following respects: (a) that said lien or lien statement does not contain a correct description of the property sought to be charged or a description sufficient to identify the property sought to be charged in this action with such a lien, (b) That said lien or lien statement does not contain the name of the owner of the property sought to be charged with such lien. ’ ’
Prom the facts found the court made conclusions as follows:
“I. That plaintiff’s action may not be maintained in the absence of the Montana Pish Meal & Oil Corporation as a party.
“II. That the mechanic’s or materialmen’s lien claimed by the plaintiff as the basis for its action is wholly invalid and unenforcible.
“III. That said lien offered in evidence over the objection of the defendants was not admissible in evidence against said defendants, or either of them.
“IV. That the defendants are entitled to a judgment dismissing plaintiff’s complaint herein.”
In accord with the court’s findings and conclusions a judgment of dismissal was given and entered from which plaintiff has appealed.
It is well settled in this jurisdiction that in any suit seeking to enforce or establish the validity of a mechanic’s lien the owner or person whose interest is sought to be charged is a necessary party to the action. Missoula Mercantile Co. v. O’Donnell, 24 Mont. 65, 72-74, and on rehearing 75-81, 60 Pac. 594 and 991; Wagner v. St. Peter’s Hospital, 32 Mont. 206, 214, 79 Pac. 1054, 1055, and Pittsburgh Plate Glass Co. v. Culbertson Hotel Co., 62 Mont. 605, 205 Pac. 957.
Plaintiff’s claimed lien is clearly defective in the particulars stated in the court’s findings of fact. The notice of lien states it was for work in electrical wiring of “the certain Pish Meal Plant building, erected on a certain lot, piece or parcel of land hereinafter described” and also “this lien applies and attaches” to such lot, piece or parcel of land, whereas the evidence shows that there was no such building erected or existing on any lot or parcel of land to which the claimed lien could attach and that the labor and material were actually furnished for certain machinery and appliances not affixed or attached to any building. The notice of lien also states “the installation and the whole thereof was installed at the special instance and request of Verne P. Luhrsen, and Mack Hamilton, the representatives of such Montana Fish Meal Company and the person for whose, immediate use and benefit the electrical wiring was installed.” This is a very substantial variance for the debtor corporation was Montana Fish Meal and Oil Corporation and not “Montana Fish Meal Company” as is stated in the notice.
The movable platform on which the machinery and equipment were placed is not a structure within the'meaning of the provisions of R. C. M. 1947, sec. 45-501.
At the time the platform was placed on the top of ground leased for only one year and at the time the machinery was placed thereon the evidence clearly shows that it was most uncertain as to how long the platform might be used at such location.
The witness, Fred Dufresne, a stockholder of the fish corporation, testified:
“Q. In other words, a temporary establishment? A. It was thought that the plant should be designed so it could be moved if it was found necessary, and also wherever the fish were found in large enough quantities to have volume production.
“Q. In other words, if they couldn’t find enough in the Missouri River they could move it to some other place where there was enough? A. Yes, there was no transporting of fish a long distance.”
The testimony of the witness Dufresne was corroborated by that of the witness Hamilton, treasurer of the fish corporation, and by the witness Earl Botsford, also a stockholder in such corporation.
The witness Botsford testified:
“Q. You understood they would have to move if the lease was cancelled ? A. That is right.
‘ ‘ Q. For that reason, if they put up a building they would put it up in sections? A. Yes.
“Q. No building was ever started out there? A. No.
“Q. No foundation was laid for it? A. Unless you call that platform, — there was no concrete foundation there. ’ ’
In Barnes v. Montana Lumber & Hardware Co., 67 Mont. 481, 486, 216 Pac. 335, 336, where this court held that a mechanic’s lien could not be created against a threshing machine, we said: “We are therefore of the opinion that, as used in section 8339, supra [Rev. Codes of 1921, now R. C. M. 1947, see. 45-501], the word ‘structure’ must be held to partake of the element which is common to the associated terms, notwithstanding other possible definitions thereof. This is especially true since the word ‘structure’ is ordinarily understood as meaning a building. * * * We are however, of the opinion that a ‘structure,’ to be lienable, must, at the same time the labor is performed upon it or the materials used in connection with its creation, improvement, or repair, be attached to land. In other words, without partaking of that nature of fixtures which in certain instances makes them nonremovable portions of the real estate, the ‘structure’ must be affixed to the land or be of or appurtenant to it, before a valid lien can be secured thereon. ’ ’ (Emphasis supplied.) The Barnes Case, supra, is cited with approval in Interstate Lumber Co. v. Eider, 93 Mont. 489, 494, 19 Pac. (2d) 644, and it is also approved, but distinguished by reason of the provisions of E. C. M. 1947, sec. 67-210, in Caird Engineering Works v. Seven-Up Gold Min. Co., 111 Mont. 471 at page 489, 111 Pac. (2d) 267 at page 277. See also Healy v. Toles, 266 Mich. 584, 254 N. W. 213, 92 A. L. R. 749, which reaches the same conclusions as in the Barnes Case, supra.
E. C.M. 1947, section 67-209, provides: “A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines, or shrubs; or imbedded in it, as in the case of walls; or permanently resting upon it, as in the case of building; or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts, or screws. ’ ’
In Butte Electric Ry. Co. v. Brett, 80 Mont. 12, 257 Pac. 478, 480, the court in construing the above statute said: “While a thing imbedded in the soil, a pole, ordinarily is a fixture (section 6669, E. C. 1921), certain tests are employed to ascertain whether as a fact an article attached to the realty is a fixture. Two of the tests are: The use or purpose of the annexation, which is entitled to much weight, and the intention of the party making the annexation, which is generally held to be the chief test. It is said that, if property is placed on land to improve it and make it more valuable, it is generally deemed a fixture, but, if attached for a use which does not enhance the value of the land, it remains a chattel. The intention to make an article a permanent accession to the realty must affirmatively and plainly appear; if the matter is' left in doubt and uncertainty, the legal qualities of the article are not changed, and it must be deemed a chattel. 11E. C. L. 1061-1062. By placing the poles in the streets and roads, the plaintiff did so for the purpose of transmitting power to its ears. Tbe poles are accessory to its business, not to tbe soil in wbieb they stand.” See also Standard Oil Co. v. Idaho Community Oil Co., 98 Mont. 131 at page 140, 37 Pac. (2d) 660; Padden v. Murgittroyd, 54 Mont. 1, 165 Pac. 913; Mattison v. Connerly, 46 Mont. 103, 126 Pac. 851; Moller v. Wilson, 8 Cal. (2d) 31, 63 Pac. (2d) 818, a case involving a pipe organ and construing a statute substantially the same as R. C. M. 1947, sec. 67-209; Reno Electrical Works v. Ward, 51 Nev. 291, 274 Pac. 196, 62 A. L. R. 247 and note; 22 Am. Jur., Fixtures, p. 775, sec. 61.
Obviously tbe macbines, motors and other equipment placed upon tbe platform, constructed as it was, were not fixtures witbin tbe meaning of R. C. M. 1947, sec. 67-209, so as to make them real estate and lienable. Accordingly the judgment is affirmed.
ASSOCIATE JUSTICES FREEBOURN, ANGSTMAN, METCALF and BOTTOMLY, concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
This is an application for a writ of habeas corpus or other appropriate post-conviction remedy.
. While the petition does not contain a complete recitation of the fact situation prior to the arrest of the petitioner, it is partially set forth in the memorandum of authorities and in the various exhibits annexed to the petition.
It appears that petitioner had been in the juvenile court on one occasion and had been committed to the Industrial School at Miles City. He was paroled from that institution to Helena and through the efforts of the district judge and his chief probation officer he secured a ■ job and requested $100 from the money he had on deposit with the Industrial School from work he had performed during the summer. A check for this amount was forwarded from Miles City and given to the petitioner on or about October 22, 1961.
On October 23, 1961, petitioner, in company with his 15 year old brother, held up and robbed an attendant at a gas service station, at night, at threatened gun point, of the sum of $295. They went to Great Falls, stayed -overnight and the next day drove to Big Sandy where they were stopped and arrested by a deputy sheriff. They were taken to the Big Sandy jail and questioned; petitioner’s automobile was searched and a bag of money was found which allegedly was money stolen from the gas station. Petitioner was returned to Helena and signed a confession. An Information was filed against him on October 26, 1961, and on a plea of guilty he was sentenced on November 3, 1961, to a term of 10 years in the state penitentiary.
Upon ex parte presentation of the petition by counsel this Court issued an order to show cause which in brief set forth the contentions of petitioner in this language:
“It appears from the petition and supporting papers that the petitioner, when he was 17 years of age, appeared before the trial court and was charged by Information with the crime Of robbery, a felony; that upon arraignment he was advised of his right to counsel but waived counsel, entered a plea of guilty and was sentenced to 10 years in the State Prison. Petitioner, an Indian with an eighth grade education, alleges that while he could read, write and understand the English language he did not fully appreciate the purpose of an attorney nor did he understand the nature of the charges against him or the penalties he might receive; that while he knew he was charged with the offense of robbery and that it was a felony, he did not know what a felony was nor did he know that he might be sent to the State Prison.
“Petitioner alleges the proceedings were defective and deprived him of his constitutional rights in that, among other things, the trial court did not advise him of the consequences of a guilty plea and that his right to counsel under Art. Ill, Sec. 16 of the Constitution of the State of Montana, and the 6th Amendment to the Constitution of the United States, has been denied him because he did not intelligently and knowingly waive such right. ’ ’
Respondent appeared by an amended answer and admitted the fact situation insofar as it appeared in the petition, but denied that the proceedings against petitioner were defective or that he was deprived of any constitutionally guaranteed right.
There was no court reporter present at the time of the arraignment and plea. The minute entry of October 26, 1961, reads:
“Upon written motion of the County Attorney, leave was this day granted by the Court to file on Information herein charging the defendant with the crime of Robbery, a felony, and the information was this day filed. Whereupon Defendant answered to his true name. Whereupon, the defendant being without counsel, he was advised of his right to be represented by counsel, and defendant state [sic] to the Court that he was without counsel and desires no counsel. Whereupon, The information was read and a copy given to the defendant, who in answer to a query by the court answered that his true name is Richard Morsette, and entered a plea of ‘Guilty’. Whereupon Court fixed Friday, November 3, 1961, as the time for sentencing.”
The minute entry of Nevember 3, 1961, reads:
“The County Attorney, with the Defendant, Richard Morsette, came into Court, the Defendant was duly informed, according to law, of the nature of the Information filed against him charging the commission of the crime of Robbery, a Felony, alleged to have been committed on or about the 26th [sic] day of October, 1961, and was duly arraigned, whereupon the Defendant entered his plea of ‘Guilty as charged in the Information.’ The Defendant was then asked if there was any legal reason why judgment should not then be pronounced and he stated that there was none, whereupon the Court rendered its judgment that:
“IT IS ORDERED, ADJUDGED AND DECREED that the said Defendant be punished by imprisonment in the State Prison of Montana at hard labor for the term of ten (10) years, That the Defendant be remanded to the Sheriff of Lewis and Clark County to be by him delivered into the custody of the Warden of the State Prison for the execution of said judgment.”
At the time of sentencing the district judge read a statement and the record contains such statement and shows that a copy was given to the petitioner. However, this statement only recites certain facts within the knowledge of the judge and his observations as to the conduct of the defendant and juveniles in general.
In brief this is the record upon arraignment and plea.
Petitioner in January of this year filed a paper entitled “Motion to Vacate and Set Aside Judgment of Conviction” in the district court of Lewis and Clark County and a hearing was ■held thereon on January 25, 1968. At that time petitioner was represented by the public defender of Lewis and Clark County. Following the hearing the district court by order of January 31, 1968, denied the motion. On February 4, 1968, petitioner ■wrote the public defender requesting that an appeal be taken. The district court by order of February 13, 1968, found that the letter constituted a request for appeal but that carrying forward such an appeal was not properly within the jurisdiction and duties of the public defender and directed that the matter be referred to the Defenders’ Project so that they might proceed with the appeal. The Montana Defender Project determined that the questions arising in these proceedings could be handled by way of a petition for writ of habeas corpus, and this original proceeding was instituted.
It is petitioner’s contention that the district court (1) failed to advise him of the consequences of a guilty plea and the possible length of a sentence which could be imposed; (2) did not allow petitioner a reasonable time to answer or plead; (3) did not inquire into circumstances in mitigation of punishment; (4) did not hold a pre-sentence investigation under the provisions of section 94-7831, R.C.M.1947; and (5) denied petitioner’s right to counsel because petitioner did not intelligently and knowingly waive his right to counsel.
Respondent, as to the first contention, relies on the district court minute entry which states that petitioner “was duly informed, according to law, of the nature of the information filed against him charging the commission of the crime of robbery,” as being sufficient and the burden would be on petitioner to prove no such advice was given. As to the fifth contention respondent again asserts that the burden is on the petitioner to prove facts showing that a waiver was not intelligently and knowingly made.
We shall consider these two related contentions first. We have quoted the minute entries relied on by the respondent and we can observe considerable merit in the argument made. However, we recently reviewed a somewhat similar situation in State ex rel. Biebinger v. Ellsworth, 147 Mont. 512, 415 P.2d 728, where it is stated:
“The only real issue before us is whether the provisions of section 94-7810, R.C.M.1947, are mandatory. If so, did the ar raignment of petitioner comply with the provisions of this section? Section 94-7810 reads as follows:
“ ‘Arraignment of defendant for judgment. When the defendant appears for judgment, he must be informed by the court, or by the clerk, under its direction, of the nature of the charge against him, and of his plea, and the verdict, if any thereon, and must be asked whether he has any legal cause to show why judgment should not be pronounced against him.’
“This statute was taken verbatim from the California Penal Code and first became part of our law when adopted as section 210 of the Bannack Statutes, 1864. * * * [T]his court has only twice been called upon to interpret this statute, State v. Sorenson, 75 Mont. 30, 241 P. 616; Kuhl v. Dist. Court, 139 Mont. 536, 366 P.2d 347. Neither case giving illumination to the present issue. In the meantime California has had numerous cases holding that the requirements of this section are mandatory and substantial compliance is required since the statute affects important rights of the defendant who, when arraigned, may show that he is insane or has grounds for new trial or for arrest of judgment. In re Basuino, 22 Cal.2d 247, 138 P.2d 297; People v. Swift, 140 Cal. App. 7, 34 P.2d 1041; People v. Cross, 213 Cal.App.2d 678, 28 Cal.Rptr. 918. We concur with the holding of our sister state that the statement of facts included in an arraignment for judgment is mandatory unless waived by the court as preliminary to pronouncing judgment and that such preliminary statement constitutes no part of the judgment itself. People v. Smith, 151 Cal.App.2d 294, 311 P.2d 149.
“The United States Supreme Court in several recent decisions has set forth the criteria necessary in cases such as is here under consideration. In Carnley v. Cochran, 369 U.S. 506, 516, 82 S.Ct. 884, 890, 8 L.Ed.2d 70, the court said:
“ ‘* * * The record must show, or there must be an allegation and evidence which show,, that an accused was offered counsel but intelligently and .understandingly rejected the offer. Anything less is not waiver.’ See also Gideon v. Wainwright, 372 U.S. 335, 83 S.Ct. 792, 9 L.Ed.2d 799, 93 A.L.R. 2d 733.
“It is the duty of the district court to inform the defendant not only that he has a right to counsel, but that if he is without means to employ counsel that counsel would be provided for him by the State without cost to him. Too, it is the trial court’s duty in taking a plea to inform the defendant of the extent of the penalty provided by law. The record must also show that the provisions of section 94-7801, R.C.M.1947, as to the period of time between plea and sentence have been complied with.
“Considering the very minimum record of the arraignment in light of recent federal cases reviewing the actions of state courts in the field of criminal procedure, we find that this record fails to reveal that petitioner entered his plea of guilty with notice and understanding of the charge against him and a full understanding of the consequences of his plea, as is required by our statutes.”
We then went on in our opinion in the Biebinger case to observe that we did not accept the multiple allegations of the petitioner there as being proven to our satisfaction, such as lack of counsel or lack of understanding; and we further stated that while the record disclosed no duress or’fraud being perpetrated, but on the contrary showed a county attorney carefully trying to assist petitioner, but more than that was required. We continued:
“While the burden of proof is always on the petitioner we find that on this particular record he must prevail due to the failure of the court to carefully set forth in the record each procedural step required by our law.”
So it is here, the record does not disclose the procedural steps required to be followed as discussed in Biebinger.
In view of our disposition of this matter, hereafter stated, there appears to -be little reason to enter upon an ex tended discussion of the other contentions of the petitioner here, other than to state his second contention appears to be without merit; the third contention has been thoroughly-covered by our opinion in Kuhl v. District Court, 139 Mont. 536, 366 P.2d 347, and what is there stated should be observed in further proceedings in this matter. As to the fourth contention regarding the provisions of section 94-7831, R.C.M. 1947, should occasion arise in future proceedings in this matter, compliance with this statute should be noted in the record.
In view of what we have heretofore stated the commitment in this case of State of Montana v. Richard Charles Morsette is annulled, vacated and set aside; the plea of guilty entered in said cause is withdrawn; and a writ of habeas corpus will be issued in this matter unless, within ten days from the date of this opinion, the district court of the First Judicial District of the State of Montana, in and for the county of Lewis and Clark, shall make and enter an order directing the Warden of the State Penitentiary to forthwith deliver Morsette to the Sheriff of Lewis and Clark County to be by him returned to Lewis and Clark County for further proceedings in said criminal action in accordance with the statutes in such case made and provided.
Since the petitioner was sentenced on November 3, 1961, a considerable period of time has elapsed and under the previous rulings of this court, if a conviction were to result upon a retrial, if one be had, no credit would need be given for the time already served. See State ex rel. Nelson v. Ellsworth, 141 Mont. 78, 375 P.2d 316. Because of the circumstances existing in this cause we suggest to the district court that should occasion arise for the imposition of a new sentence in this cause, that the provisions of section 95-2214 R.C.M. .1947, Montana Code of Criminal Procedure, be observed.
MR. JUSTICES HASWELL, ADAIR and JOHN CONWAY HARRISON, concur.
MR. JUSTICE CASTLES, dissents.
|
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MR. JUSTICE METCALF:
Suit in equity to enjoin the sale of bonds of the city of Deer Lodge, Montana, in the amount of $40,000. Upon the filing of the complaint the district court of Powell county issued a temporary restraining order against defendants and directed that, on a day certain, they show cause why the injunctive order should not be made permanent. Defendants interposed a general demurrer to the complaint and a motion to quash the injunctive order. Both the demurrer and motion were allowed, whereupon plaintiff elected to stand on his complaint and suffered judgment of dismissal to be entered against him, from which judgment he has taken this appeal.
The suit is by J. M. Dietrich, plaintiff, against the defendants, City of Deer Lodge, the mayor, city clerk and the eight councilmen of the city.
The complaint avers: The defendant city of Deer Lodge is a duly constituted political subdivision of the state of Montana and the other ten named defendants are the officials of the city ;
Main street is a duly established public street and thoroughfare in the city and constitutes a portion of U. S. Highway No. 10 as it extends through the business section of the defendant city along which are located substantially all of the retail stores and business establishments of the city, situate on property abutting and fronting on such street;
Plaintiff is a freeholder paying taxes on real and personal property owned by him within the limits of the city situate approximately five blocks distant from Main street, none of which property abuts or fronts on Main street;
U. S. Highway No. 10 is a main transcontinental highway that has been given certain specifications by the Montana state highway commission and by the public roads administration of the federal works agency of the United States;
Main street as now established and constructed does not conform to specifications prescribed by the state highway commission and by the public roads administration of the federal works agency of the United States relating to U. S. Highway No. 10.
To make Main street conform to such specifications, it was proposed that under federal aid project No. FI-184 (10) the street be improved by widening and repairing it with asphaltic concrete at a total cost of approximately $156,000, the city to contribute 25% thereof and the remaining 75% to be defrayed, paid out and liquidated by the United States Government through its public roads administration and the state of Montana through its state highway commission.
In order to carry out the arrangement, bonds were issued under the provisions of section 11-2301 et seq., R. C. M. 1947. The plaintiff contends the contemplated improvement can be achieved only by the compliance with the special improvement district statutes, R. G. M. 1947, sections 11-2201 to 11-2281, inclusive, secs. 5225-5277-5, R. O. M. 1935, Ch. 149, Laws of 1943 and Ch. 260, Laws of 1947.
The sole question is whether or not in this state a municipality can issue general obligation bonds for the purpose of paving and widening its streets.
There are some fundamental precepts of long standing in this jurisdiction that govern the creation of indebtedness by a municipal corporation and guide us in the determination of this question.
In City of Helena v. Helena Light & R. Co., 63 Mont. 108, 207 Pac. 337, 339, this court declared: “A city is but a political subdivision of the state for governmental purposes, owing its very existence to the legislative will, and capable of exercising only such powers as are granted, either directly or by necessary implication * * The streets of a city are public high - ways (section 1612, E. C. M. 1921), and though the city is charged with the duty of keeping them in repair, and the cost of maintenance is imposed upon the city, nevertheless jurisdiction over them is primarily in the state, and the city acts with respect to them subject to the general laws of the state.”
In State ex rel. Great Falls Housing Authority v. City of Great Falls, 110 Mont. 318, 328, 100 Pac. (2d) 915, 920, this court quoted with approval from McClintock v. City of Great Falls, 53 Mont. 221, 163 Pac. 99, saying: “A city of this state is a creature of statute. Independently of legislation it cannot exist — cannot exercise any functions whatever.” (Citing many cases.)
The legislature has granted to the city or town councils the powers enumerated in R. C. M. 1947, sections 11-901 to 11-989. specifically granting powers for many purposes. Other powers are exercised in accordance with other provisions of Title 11, E. C. M. 1947.
The authority of the city or town council to contract an indebtedness on behalf of the city or town by borrowing money or issuing bonds is found in E. C. M. 1947, section 11-966, wherein the following purposes are enumerated: “Erection of public buildings, construction of sewers, bridges, docks, wharves, breakwaters, piers, jetties, moles, waterworks, lighting plants, supplying the city or town with water by contract, the purchase of fire apparatus, the construction or purchase of canals or ditches and water rights for supplying the city or town with water, and the funding of outstanding warrants and maturing bonds * * *.”
E. C. M. 1947, section 11-937, authorizes the establishment of a jail; 11-947 a detention hospital; 11-955 a workhouse; 11-905 grants the power “To build or hire all necessary buildings for the use of the city or town * * But it is to section 11-966 that we must turn to find the authority of the city or town to incur an indebtedness or issue bonds for the erection of public buildings.
.Likewise, section 11-909 gives the city or town council the power to provide for lighting and cleaning streets, requires snow removal and regulates the removal of ashes, garbage and other offensive matters. But the legislature has, only granted authority for issuance of bonds for street lighting purposes and has made a special provision in section 11-909 for the cost of garbage removal.
Certain sections of the statute authorize the city to perform certain acts and specifically authorize the incurring of indebtedness therefor. For example, by section 11-988 the legislature granted the city or town council authority “to contract an indebtedness * * * by borrowing money or issuing bonds for the construction, purchase or development of an adequate supply of natural gas, ’ ’ etc.
In section 11-1008 the city or town is “authorized to establish and maintain a public bathing place within said city or town, and to defray the cost and expense of maintaining said public bathing place, said city or town is hereby authorized and empowered to contract an indebtedness, upon behalf of said city or town, upon the credit thereof, by borrowing money or issuing bonds * #
In section 62-201 the legislature has granted the city or town council the power “To contract an indebtedness on behalf of a city or town, upon the credit thereof, by borrowing money or issuing bonds for the purpose of purchasing and improving lands for public parks and grounds; and/or for procuring by purchase, or construction, or otherwise, swimming pools, athletic fields, skating rinks, playgrounds, museums, a golf course, a site and building for a civic center, a youth center, ’ ’ etc.
By section 11-986 the city or town council is granted the power to acquire lands for landing fields or parking areas of aircraft. This section was originally enacted in 1927 by Chapter 20, Laws of 1927. But in order to permit the cities and towns to borrow money and issue bonds for the acquisition of lands and equipment and construction of buildings at airports, a subsequent .legislature deemed it necessary to enact legislation expressly authorizing such actions. Sec. 1-804, R. C. M. 1947, enacted as sec. 4, Ch. 108, Laws of 1929.
This court has repeatedly stated that unless the power is vested in the municipality by express law or is necessarily implied or essential to the accomplishment of the purposes of the municipality the presumption is against the exercise by the city of any such powers. Stephens v. City of Great Falls, 119 Mont. 368, 175 Pac. (2d) 408; State ex rel. Housing Authority v. City of Great Falls, supra; State ex rel. Gebhardt v. City Council of Helena, 102 Mont. 27, 55 Pac. (2d) 671; City of Bozeman v. Merrell, 81 Mont. 19, 261 Pac. 876; Wibaux Improvement Co. v. Breitenfeldt, 67 Mont. 206, 215 Pac. 222; State ex rel. City of Billings v. Billings Gas Co., 55 Mont. 102, 173 Pac. 799; Sharkey v. City of Butte, 52 Mont. 16, 155 Pac. 266; Shapard v. City of Missoula, 49 Mont. 269, 141 Pac. 544; Helena Light & R. Co. v. City of Helena, 47 Mont. 18, 130 Pac. 446.
The inquiry must always be: “ (1) Whether there is an express grant; (2) whether there is a grant by necessary implication; or (3) whether the power in question is indispensable to the accomplishment of the object of the corporation.” Milligan v. City of Miles City, 51 Mont. 374, 383, 153 Pac. 276, 278, L. R. A. 1916C, 395.
“The reason for the rule is that it must be presumed that the state has granted in clear and unmistakable terms all that it intended to grant at all.” State ex rel. Quintin v. Edwards, 40 Mont. 287, 106 Pac. 695, 699, 20 Ann. Cas. 239.
Section 11-906 gives the city or town council the power “To lay out * * * pave, or otherwise improve streets * * *.” There is no mention of the power to incur indebtedness or issue bonds. Nor does section 11-966, supra, authorize the city or town to incur indebtedness or issue bonds to carry out the power granted in section 11-906. Nowhere is there an express grant of such power.
The accepted mode of issuing bonds for the paving, repairing and widening of streets when an indebtedness has to be incurred for that purpose is by means of a special assessment and the creation of a special improvement district. E. C. M. 1947, sec. 11-2201.
This is the means provided by the legislature for the city or town to carry out the authority granted by section 11-906. Then the power to issue general obligation bonds is not “necessary” or “indispensable” to enable the city or town to discharge its responsibility for providing adequate streets and alleys.
“When a power is conferred upon a municipal corporation and the mode in which it is to be exercised is prescribed by the statute or an independent act, such procedural method must be followed.” State ex rel. Daly v. Dryburgh, 62 Mont. 36, 47, 203 Pac. 508, 511 and cases therein cited. See also, Mountain States Power Co. v. City of Forsyth, D. C. Mont., 41 F. Supp. 389, 391, reversed on other grounds, 9 Cir., 127 F. (2d) 583.
A good deal of reliance is placed upon the quotation from 5 McQuillin, Municipal Corporations, 2d Ed., sec. 2010: “A grant of power authorizing payment for public improvements by special assessments is usually construed as not affecting the power of the municipal corporation to make improvements and pay therefor out of the general revenue.” The cases cited in the footnote give scant support to the rule therein laid down as applied to the instant question. The cited cases are in two categories. One, where there was a pre-existing general power either express or necessarily implied to issue general obligation bonds for paving purposes and the legislature subsequently authorized the municipality to provide for paving by special assessments or special improvement districts. In such cases the courts have held that the additional method did not deprive the municipalities of the powers previously granted. The second situation arose in jurisdictions where the municipalities are held to have inherent authority to carry out the powers granted them by the legislature.
The cases are not in point. In this jurisdiction the municipal corporation possesses no inherent power and there has never been an express authorization for the issuance of general obligation bonds for paving purposes.
' However it is contended that there is a grant of authority to issue such bonds by the provisions of section 11-2301. That section is in part: “Whenever the council * * * shall deem it necessary to issue bonds for any purpose whatever, under its powers as set forth in any statute or statutes of this state * * * the question of issuing such bonds shall first be submitted to the electors of such city or town * * * in the manner hereinafter set forth * *
The phrase “under its powers as set forth in any statute or statutes of this state” means under its power to incur indebtedness or issue general obligation bonds as set forth in any statute. The city or town council is not authorized to issue general obligation bonds to carry out any of the powers enumerated in section 11-901 et seq. and other sections. To give such an interpretation to section 11-2301 would be to read sections 11-966, 11-1008, 62-201 and other sections completely out of the Code.
An examination of the history of section 11-2301 demonstrates that it is a procedural statute rather than a grant of authority. Section 11-2301 et seq. merely prescribe the procedure under which general obligation bonds may be issued when the power to incur such indebtedness is granted by a specific legislative Act.
Section 11-2301 was first enacted as section 1, Chapter 160, Laws of 1931. The title declared that the Act was for the purpose of “Providing the Procedure and the Duties of City and Town Officers” in connection with the issuance of bonds by incorporated cities and towns. As originally enacted, section 1 provided that “Whenever the council of any city or town * * * shall deem it necessary to issue bonds for any purpose whatever, under its powers as set forth in subdivision 64 of Section 5039 of the Revised Codes of Montana, 1921, or amendments thereto, the question of issuing such bonds shall first be submitted to the qualified electors of such city or town in the man ner hereinafter set forth * * *” etc. Subdivision 64, section 5039, is now section 11-966, supra, the general section authorizing cities and towns to contract indebtedness for the erection of public buildings, sewers, bridges, waterworks, etc.
After an immaterial amendment by the 1933 legislature the section was incorporated in the 1935 Codes as section 5278.1, E. C. M. 1935.
The question then arose as to the procedure for issuing bonds and holding bond elections for purposes authorized by such sections as 62-201 and 11-1008 for public parks, public baths, etc. This became extremely important in 1935 and 1936 when many municipalities were anxious to cooperate with the federal government and sponsor public works projects for the relief of unemployment. Therefore the 1937 legislature struck out the specific reference to section 5039.63, E. C. M. 1935, and made the procedure uniform for all purposes for which the legislature had authorized the municipality to incur an indebtedness.
The legislature has reserved the right to issue general obligation bonds for purposes other than paving and widening streets. There is good reason for this because the constitutional debt limitation requires that the power to borrow money and issue bonds upon the credit of the city or town be carefully preserved. The alternative method of a special improvement district has been provided for paving and widening streets. This system has been accepted for many years in this state. If it is desirable to change this long established system of municipal financing the legislature can do so by express legislation. It is not incumbent upon this court to upset long established precedents, to disarrange the whole system of municipal financing and depart from fundamental principles of statutory construction to add an additional field of expenditures financed by the general credit of the municipality.
The judgment is reversed. The cause is remanded with directions to overrule defendants’ demurrer and motion to quash and for further proceedings not inconsistent with this opinion.
ASSOCIATE JUSTICES ANGSTMAN, FREEBOURN and BOTTOMLY concur.
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MR. JUSTICE DALY
delivered the opinion of the Court.
This is an appeal from a judgment in the District Court, Lewis and Clark County, entered upon a jury verdict convicting defendant of the crime of obstructing justice, in violation of section 94-7-303(2)(a), R.C.M.1947.
On October 2, 1976, the Lewis and Clark County Sheriff’s Department received information that one Duffy Chevallier, wanted by police for the alleged commission of two felony offenses, was present at the residence at 2952 Flamingo Drive, Helena, Montana.
Two members of the Lewis and Clark County sheriff’s auxiliary, Harold Watson and Larry Heigh, approached the residence and knocked on the door. Deputy Watson was met at the door by Toni Mallary. Deputy Watson testified he identified himself as an officer and stated he had a warrant for the arrest of Chevallier. Toni Mallary indicated she had not seen Chevallier for a couple of weeks. Deputy Watson further testified that'defendant, Joseph Babella, was inside the residence and approximately one foot away from him at the time he stated he was looking for and had a warrant for the arrest of Chevallier.
Both Toni Mallary and defendant denied seeing Chevallier. Subsequently, the officers, in checking the surrounding area, noticed Chevallier peeking out of a window in the residence. The officers called for assistance. Upon the arrival of Sheriff Rick Westlund and Lieutenant Richard Hammerbacker, a search of the trailer was conducted. At trial, Hammerbacker testified he also indicated to Toni Mallary and defendant that he had a warrant for the arrest of Chevallier. However, neither offered information that Chevallier was, in fact, within the residence. During the search, Chevallier was discovered hiding under a couch in the living room.
Both Toni Mallary and defendant testified they were never informed, by the officers or otherwise, that there existed a warrant for the arrest of Chevallier, or that he was wanted by police.
Prior to trial defendant submitted a motion in limine seeking to prevent the introduction of evidence:
“* * * of defendant’s conviction of theft of a motor vehicle which occurred in the state of Michigan for the following reasons:
“ 1. That at the time of the offense defendant was a juvenile and nearly ten years have passed;”
The District Court denied the motion, stating:
“THE COURT: Okay. As to the Motion in Limine filed herein, the first part thereof, asking that any reference to the conviction of theft to a motor vehicle in the state gí Michigan is denied to this extent. The County Attorney may ask a single question in regard to the record of the Defendant and that is, whether or not he has been previously convicted of a felony. He may not go further save and except in the event that Defendant’s character is put in issue by the defendant himself. * * *”
Upon cross-examination of defendant by the State, defendant was asked whether he had been convicted of a felony. Defendant responded, “Yes, I have.” Defendant, on this appeal, contests the propriety of his impeachment on the basis of a prior felony conviction, arguing that his motion in limine should have been granted.
On appeal, defendant raises the following issue:
Was it reversible error to admit evidence of defendant’s prior felony conviction?
Defendant bases his contention of error on the grounds that (a) the prior felony conviction was too remote in time; (b) it occurred while he was a juvenile; and (c)the District Court failed to exercise its discretion as to whether to grant or deny the motion in limine.
The thrust of defendant’s argument is that a conviction, remote in time and occurring while a defendant is a juvenile, should not be permitted to be used in the impeachment of a defendant. The sole mention in the record of the remoteness or juvenile nature of defendant’s prior Michigan conviction appears in defendant’s motion in limine, where the allegation is made that the prior conviction was almost ten years old at the time of trial, at which time defendant was a juvenile. Defendant submitted no proof to support these allegations.
While not before the District Court at the time of the denial of the motion, the presentence investigation indicates the particular conviction referred to by defendant was six years old at the time of trial and that defendant was tried and convicted as an adult, being 19 years of age at the time. Further, the report indicates that defendant was convicted of a felony in Montana in 1972, a mere four years prior to trial, at which time defendant was 21 years of age.
Clearly, if a defendant is making a motion to exclude evidence because of its potential prejudice and absence of probative value, he should be required to make some kind of showing to back it up. Thus, there is no issue of remoteness or of a juvenile conviction before this Court, as the facts do not support it.
Defendant first argues that a defendant’s conviction too remote in time cannot be used to impeach his credibility at a subsequent trial.
It is settled law in Montana, prior to the effective date of the new Rules of Evidence, that evidence of a prior conviction established by examination of the witness or by record of judgment may be introduced for the purpose of impeaching that witness. Section 93-1901-11, R.C.M.1947; State v. Gafford, (1977), 172 Mont. 380, 563 P.2d 1129; State v. Romero, (1973), 161 Mont. 333, 505 P.2d; State v. Coloff, (1951), 125 Mont. 31, 231 P.2d 343. While there is no authority in Montana resolving the question of the effect of the remoteness of prior conviction on its probative value and potential for giving rise to prejudice, the facts show defendant 19 years of age and not a juvenile.
Défendant relies primarily upon an Illinois decision for the rule that admissibility of evidence of prior conviction is within the discretion of the trial judge only if a period of less than ten years had elapsed since the later of the date of conviction or the release of the witness from confinement; beyond ten years, the trial judge is without discretion to permit evidence of the prior conviction. People v. Montgomery, (1971), 47 Ill.2d 510, 268 N.E.2d 695.
Other jurisdictions, however, hold that regardless of the age of the prior conviction, the matter is within the sound discre tion of the trial court. State v. Landrum, (1975), 25 Ariz.App. 446, 544 P.2d 270; Martin v. Commonwealth, (Ky.1974), 507 S.W.2d 485; People v. Wingo, (1973), 34 Cal.App.3d 974, 110 Cal.Rptr. 448; Rascon v. State, (Tex.Cr.App. 1973), 496 S.W.2d 99. Yet other jurisdictions permit introduction of evidence of prior convictions regardless of their remoteness, holding the age of the conviction goes to the weight of the evidence, not its competence. Hall v. State, (Ind.App. 1976), 339 N.E.2d 802; State v. Bergen, (1975), 13 Wash.App. 974, 538 P.2d 533; People v. Sinclair, 30 Mich.App. 473, 186 N.W.2d 767. The matter is one of discretion on the part of the trial judge, and we find no abuse of discretion.
Defendant further contends that a juvenile court judgment cannot be used to impeach the credibility of a witness, citing the general rule in this regard. 63 A.L.R.3d 1113, § 3; Rivas v. State, (Tex. 1973), 501 S.W.2d 918; Ranas v. State, (1967), 34 Wis.2d 468, 149 N.W.2d 571, cert. den. 389 U.S. 962, 88 S.Ct. 346, 19 L.Ed.2d 373; People v. Gomez, (1957), 152 Cal.Appl2d 139, 313 P.2d 58. Here, however, defendant had a prior conviction in Montana when over the age of 21 years.
Defendant last argues that the Jrial judge, in denying the motion in limine, did so mechanically and without an excuse of discretion, contrary to the general rule referred to by Justice Shea in his dissent in State v. Gafford, supra. Defendant urges the conviction be reversed on this ground as well.
The record in this case is bare of facts tending to support defendant’s argument. However, it is logical to presume that when a court is vested with discretionary power regarding determination of an evidentiary matter, a decision on the matter is an exercise of discretion. The question then becomes whether the court abused its discretion under the facts of the case. Defendant does not make this argument. We find no abuse of discretion.
The conviction is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, SHEA and SHÉEHY concur.
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MR. JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal from a judgment of the District Court, Thirteenth Judicial District, Treasure County, Montana. The lower court ordered specific performance of two oral agreements entered into between Lee and Barbara Prewett, respondents (hereafter referred to as “Prewetts”), and Frank A. Donnes, deceased. George Orlando, as personal representative of the Estate of Frank A. Donnes, appeals from that order. This case is remanded to comply with this opinion.
Frank A. Donnes owned a ranch (“Donnes ranch”) in Treasure County. He was raised on a portion of the property contained in the ranch and lived most of his adult life thereon. He was once married but his wife died young and without children. Some years prior to his death, Mr. Donnes ceased operating the ranch himself and leased it under a cash rental agreement. He continued to live on the ranch, however, and to have the use of the buildings and to run a few cattle. This particular lease arrangement terminated in 1978 and from that time until 1980 Mr. Donnes resumed sole responsibility for operating the ranch.
In May of 1980 Mr. Donnes, advancing in years and having grown tired of working the ranch himself, approached his niece, Barbara Prewett, and asked if she and her husband Lee would be interested in moving to the ranch and operating it. Thereafter the Prewetts met with Mr. Donnes and reached an oral agreement wherein it was agreed that if the Prewetts moved to the Donnes ranch and leased the same for $18,000 per year, Mr. Donnes would leave the Prewetts an undivided one-half interest in the ranch and give them the option of purchasing the other half at an appraised value at the date of his death. As a result of this agreement the Prewetts bought a trailer-home and moved to the Donnes ranch in July of 1980. They testified that they would not have moved to the ranch and assumed the duties of running it if there had not been the agreement with Mr. Donnes described above.
In May of 1982, Lee Prewett and Mr. Donnes made an oral agreement for the sale of certain items of Mr. Donnes’ personal property. On or about September 9, 1982, Frank Donnes was murdered. No lease payment on the ranch or payment on the purchase price of the personal property had been made to him at the time of his death.
A short period of time passed before the duly executed last will and testament of Frank A. Donnes was discovered in the home of one of his sisters in the State of Washington. Helen Carbone and Mabel Orlando, sisters of Mr. Donnes were named under the will as sole devisees, of his entire estate. On November 16, 1982, appellant George Orlando filed this will with the Treasure County Clerk of Court along with a petition for formal probate. On January 8, 1983, the Prewetts filed creditor’s claims wherein they demanded specific performance of the oral agreements made between them and Mr. Donnes. On January 19, 1983, the will of decedent was admitted to formal probate as the valid last will and testament of Frank A. Donnes.
On January 24, 1983, George Orlando, appellant, having been appointed personal representative of the Frank A. Donnes estate, filed notice of disallowance of the creditor’s claims and instituted an action to quiet title against the Prewetts in and to the Donnes ranch and certain personal property. The Prewetts counterclaimed for specific performance of the two oral agreements set forth in their creditor’s claims. A bench trial was held beginning on November 7, 1983 and on April 17, 1984, the District Court ruled in favor of the Prewetts.
The dispositive issue presented by this appeal is whether the oral agreements entered into between the Prewetts and Mr. Donnes are enforceable?
The parties to this appeal disagree over the nature of the oral agreement for the transfer of real property. Appellant contends that the agreement constituted a contract to make a will or devise; the Prewetts argue that the agreement was for the leasing, sale, and purchase of the Donnes ranch. The lower court was in accord with the Prewetts. Paragraphs 5 and 7 of its Conclusions of Law read as follows:
“5. That the agreement between decedent and the Prewetts, as herein set forth in Conclusion No. 1, above, was in agreement for the leasing, sale and purchase of real property and, therefore, is specifically covered by Sections 30-11-111, 70-20-101, and 70-20-102, which authorize the Court to compel the specific performance of an oral agreement for the leasing, sale and purchase of real property in case of part performance thereof.
“7. That Section 72-2-105 requires a contract to make a Will or devise or not to revoke a Will or devise or to die intestate to be in writing, and even assuming this statute to be applicable to the instant case, which the Court concludes it is not, it is a statute of frauds provision, and part performance thereof will remove the same from the operation of the statute.”
We disagree with these conclusions and find them inexplicable in light of paragraph 13 of the lower court’s own findings of fact. In crucial part that paragraph reads as follows:
“. . . Thereafter, in May of 1980, decedent contacted his niece, Barbara Prewett, one of the defendants herein . . . and asked whether or not she and her husband would be interested in moving to the ranch and operating it. As a result of the inquiry, the defendant, Lee Prewett, husband of Barbara Prewett, met with decedent and discussed the possibility of working out an arrangement relative to the Donnes Ranch. A few days later a second meeting occurred, at which time the parties reached an oral agreement whereby the parties agreed that if the Prewetts moved to the Donnes Ranch and leased the same for $18,000.00 per year annually, . . . that upon his death decedent would leave unto the Prewetts an undivided one-half interest in the Donnes Ranch and the Prewetts would have the right to purchase the other one-half of the Donnes Ranch at an appraised value as of the date of death.” (Emphasis added.)
Further, in paragraph one of its conclusions of law the lower court restates the terms of the agreement:
“1. That in May, 1980, decedent and the Prewetts entered into an oral agreement whereby they agreed to move to the Donnes Ranch and lease the Donnes Ranch from decedent for the remainder of his lifetime for consideration, initially, of $18,000.00 annually, and decedent agreed to give an undivided one-half interest in the ranch to them at the time of his death and provide them with the right to buy the other one-half interest in the ranch at the appraised value as of the date of his death.”
Given the findings of fact, which are amply supported by the record and not challenged by either party to this appeal, it could not be more clear that the Prewetts and Mr. Donnes entered into an oral agreement for the disposition of certain of Mr. Donnes’ property at his death. The vehicle for making this disposition was to be either a will or a grantor trust. But despite the formalities that were contemplated it is not challenged that the intent of the oral agreement was that Frank Donnes should leave real property to the Prewetts at his death. The District Court committed error, and contradicted its own findings of fact, when it concluded that the oral agreement was for the leasing, sale and purchase of real property and therefore was covered by Sections 30-11-111, 70-20-101 and 70-20-102, MCA. Section 72-2-105, MCA, is the clearly applicable statute to the facts of this case and provides in pertinent part as follows:
“Contracts concerning succession. (1) A contract to make a will or devise or not to revoke a will or devise or to die intestate, if executed after July 1, 1975, can be established only by:
“(a) provisions of a will stating material provisions of the contract;
“(b) an express reference in a will to a contract and extrinsic evidence proving the terms of the contract; or
“(c) a writing signed by the decedent evidencing the contract.”
In the present case (1) there is no provision in decedent’s will stating material provisions of the contract; (2) there is no reference, express or otherwise, in decedent’s will to a contract; (3) there is no writing signed by the decedent evidencing the contract. The agreement between the Prewetts and Mr. Donnes by which the Prewetts were to receive half the ranch and first option to purchase the other half at the death of Mr. Donnes does not conform in a single partic ular to the requirements provided by statute for the enforcement of such an agreement. Therefore the agreement must fail.
The Prewetts argue that, even if section 72-2-105, MCA, is applicable in the present, case, its requirement that there be a writing signed by the decedent is a statute of frauds provision, and part performance defeats the operation of the statute of frauds. Therefore, the Prewetts continue, since they performed their part of the agreement by moving to the ranch and assuming its operation, the agreement should be enforced despite the statutory requirement of a writing. We reject this argument for the following reasons.
First, the wording of section 72-2-105, MCA, is absolute. A contract concerning succession can be established “only” by meeting certain requirements. “Only” has a plain and unambiguous meaning. We will not graft an exception on to a statute when the language does not allow for an exception. The Prewetts would have us analogize section 72-2-105, MCA, to section 70-20-101, MCA, which requires a writing for the transfer of an interest in real property, and section 30-11-111, MCA, which requires that a contract for the sale of real property be in writing. However, a part performance exception to the writing requirement of these two statutes is specifically provided for in the code. There is no such exception specifically provided to section 72-2-105, MCA.
Second, we have not been able to discover authority from any jurisdiction that has adopted the Uniform Probate Code with a succession contract provision identical or similar to section 72-2-105, MCA, holding that an oral contract to make a will or devise can be enforced on the basis of a part performance exception to the statute of frauds. The authority and commentary we can find provides the opposite. In First Gulf Beach Bank and Trust Co. v. Grubaugh (Fla.App. 1976), 330 So.2d 205, the District Court of Appeals of Florida interpreted Florida Statute section 731.051 (1971), which reads in part as follows:
“731.051 Agreements to make a will, requirements.
“(1) No agreement to make a will of real or personal property or to give a legacy or make a devise shall be binding or enforceable unless such agreement is in writing signed in the presence of two subscribing witnesses by the person whose executor or administrator is sought to be charged.”
In rebutting the argument that part performance shall take an oral agreement to devise real property out of the statute of frauds, the Florida Court quoted approvingly from a previous case:
“[Section 731.051] is part of the Florida Probate Law, and, as in the case of wills where the statutory requirements for a valid will must be met in order for it to be admitted to probate, the statute in question prescribes requirements which are necessary for an agreement to make a will, in order for such an agreement to be valid and enforceable in Florida. To hold that part performance by the promisee of an otherwise unenforceable agreement to make a will would make it enforceable against the executors of the promisor would defeat the purpose and intent of the legislation. This is so because in most instances where a person enters into an agreement with another to make a will containing devises or bequests to the latter, it is done in return for some consideration supplied by, or undertaking on the part of the other person, such as to care for the promisor, and in most such instances there is performance, or some performance by the promisee. But it was for the purpose of precluding the enforceability of agreements of that kind, unless they were in writing and with subscribing witnesses, that Section 731.051 was enacted.” First Gulf Beach Bank and Trust Co. v. Grubaugh (Fla.App. 1976), 330 So.2d at 210.
Though the Florida statute in question was adopted before the drafting of section 2-701 (72-2-105, MCA) of the Uniform Probate Code, we believe that the same reasoning animates both. One commentator has provided the following background and explanation of section 2-701, UPC (72-2-105, MCA):
“One of the most common problems concerned with succession contract is whether oral succession contracts may be proved . . . Because the Statute of Wills is not applicable, in most states the basic question then has been the applicability of the Statute of Frauds.
“Unless the state has a specific provision dealing with succession contracts which adequately limits the proof of oral succession contacts, the Statute of Frauds has not constituted a significant limitation on the proof of these oral contacts. Even where the Statute of Fraud’s provision concerned with the sale of real estate has been held to be applicable to succession contracts dealing with transfers of real estate, the courts have applied exceptions to the statute such as part performance and other presumptions to circumvent the Statute’s proof restriction and permit the oral contracts to be proved. Depending upon one’s viewpoint toward formality requirements, this circumvention of the Statute of Frauds may or may not be beneficial. Notwithstanding this value judgment, the ineffectiveness of the Statute of Frauds as a bar to proof of succession contract has significantly encouraged litigation over these matters.
“Clearly, this provision [2-701, UPC; 72-2-105, MCA] is intended to substantially limit the proof of succession contracts and to wash away all of the authority and decisions dealing with the application of the Statute of Frauds and its exceptions. As with the adoption of any new formalistic requirement, the expectations of some persons will be destroyed. Considering that one of the parties to the contract is no longer available to testify, however, it would appear to be good public policy to require some form of written evidence that the contract actually exists.”
Lawrence H. Averill, Jr., Uniform Probate Code in a Nutshell, Section 11.01 (1978).
We do not agree with the statement in the Prewetts’ brief that “[t]here is no sound argument why the doctrine of part performance should apply any less to Section 72-2-105, M.C.A., than it would to any other provisions of the Statute of Frauds which are scattered throughout our Code as Montana has always followed this doctrine.” In addition to the sound argument provided by the Florida court and the learned commentator quoted above, we note this additional rationale for not allowing a part performance exception to section 72-2-105, MCA.
“The many opportunities for fraud and perjury in establishing an oral testament of personal property led to the provision of the statute of frauds which regulates nuncupative testaments. Likewise, the many opportunities which exist for fraud and perjury in establishing an oral contract to make a testament, have led some states to enact statutes which deal with contracts to make testaments; and these statutes usually provide that contracts to make testaments must be in writing or must be proved by writing . . .
“Written evidence is more necessary in contracts of this sort than in the classes of contracts covered by the ordinary provisions of the statute of frauds. An unscrupulous claimant, who can secure perjured evidence, can set up and prove an oral contract. The death of the promisor makes it impossible to contradict the testimony to the effect that he made such promise; and the fact that the transaction never happened makes it all the harder to disprove it if the guilty parties have been careful to make their story fit the possibilities of time and place. In spite of the fact that it also operates to the detri ment of an ignorant or confiding promisee, legislation of this sort should be adopted generally.”
1 Bowe-Parker, Page on Wills Section 10.10.
We have recognized before that contracts to make wills are looked on with disfavor because at the time of enforcement one of the parties is dead and obviously cannot conform or deny the existence of the contract. Lazetich v. Miller (Mont. 1983), [206 Mont. 247,] 671 P.2d 15, 40 St.Rep. 1626; Craddock v. Berryman (1982), 198 Mont. 155, 645 P.2d 399. It was to tighten the methods by which such contracts could be proved that section 2-701, UPC was drafted and adopted in Montana as 72-2-105, MCA. To recognize a part performance exception to this statute would once again create the uncertainties and litigation that the statute was designed to reduce and eliminate. Accordingly, the appellant is entitled to a judgment quieting title to the real property involved in this action. The oral agreement between the Prewetts and Mr. Donnes for the making of a devise is without force and effect, and the judgment of the lower court on this issue is hereby remanded to comply with this opinion.
The judgment of the District Court is reversed and the case is remanded to comply with this opinion.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES WEBER and GULBRANDSON concur.
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JUSTICE TRIEWEILER
delivered the Opinion of the Court.
Petitioner Clayton E. DeVoe petitioned the District Court for the Fourth Judicial District of the State of Montana in Missoula Comity pursuant to § 15-2-303, MCA, for review of an adverse decision by the State Tax Appeal Board (STAB). After considering written and oral arguments of the parties and the record from the STAB, the District Court concluded that the STAB’s decision was not supported by substantial credible evidence, and therefore, was clearly erroneous. The court reinstated the State Department of Revenue’s (DOR) prior appraisals of petitioner’s properties, and ordered the DOR to pay petitioner’s attorney fees. The DOR appeals from the judgment of the District Court. We affirm in part and reverse in part.
On appeal, the DOR raises the following issues:
1. Did the District Court err when it ordered the DOR to assess the value of DeVoe’s property for the appraisal cycle beginning in 1986 based on its assessed value prior to that date?
2. Did the District Court err when it ordered the DOR to apply the assessed value of DeVoe’s property for 1986 to subsequent years during the same appraisal cycle?
3. Did the District Court err when it ordered the Missoula County Treasurer to provide DeVoe with a refund for 1986 and subsequent years during the same appraisal cycle?
4. Did the District Court err when it awarded attorney fees to DeVoe?
FACTUAL AND PROCEDURAL BACKGROUND
Clayton DeVoe owned two pieces of property located in Missoula County. Property No. 1 included a duplex and a 28 unit apartment complex. For the appraisal cycle ending on December 31, 1985, the land and improvements had been appraised at a combined value of $255,360. For the appraisal cycle beginning January 1, 1986, the assessed value was increased by the DOR to $529,800.
Property No. 2 included a 67 unit apartment complex. The DOR’s appraised value for that property for the cycle ending on December 31,1985, was $645,550. However, for the cycle beginning January 1, 1986, the appraised value was increased by the DOR to $1,340,200.
DeVoe appealed these changes in the valuation of his real property to the Missoula County Tax Appeal Board on the grounds that the newly assessed values did not reflect the actual market value of either property as required by § 15-8-111, MCA. He asked that the appraised value be reduced to an amount no greater than the previous appraisals.
In a one-sentence decision, his appeals pertaining to both Property No. 1 and Property No. 2 were denied. The County Board stated that:
Based on testimony and evidence, the Missoula County Tax Appeal Board finds that your taxable valuation has been reduced and your presentation indicates that your complaint has been fairly and equitably addressed and therefore, your appeal is denied. [Emphasis added].
While the County Board referred to the “taxable valuation” of DeVoe’s property, no reference was made in its decision to the “assessed valuation” which was the subject of his appeal.
On July 1, 1986, DeVoe timely appealed the County Board’s decision to the STAB pursuant to § 15-2-301, MCA. Among other things, he contended on appeal that the County Board had not addressed the issue that he raised, which was whether the DOR’s increase in the appraised value of his property was correct.
At the first hearing before the STAB, which was held on August 5, 1986, DeVoe testified on his own behalf, and Jim Fairbanks, who is employed by the DOR as an appraisal assessment administrator in Missoula County, testified on behalf of the DOR. No other witnesses were called.
DeVoe contended through his testimony that the 1986 appraisal did not reflect true market value of his property, based on testimony given by witnesses from the DOR during appeals that resulted from his previous appraisals.
Fairbanks testified that for the appraisal cycle beginning in 1986, the DOR used a target year of 1982 for the class of property to which DeVoe’s property belonged. He did not specifically discuss the method of appraisal that he employed. However, he offered two exhibits (one pertaining to each property) which he said supported the values he had arrived at.
Exhibit A, which pertained to Property No. 1, compared the cost per square foot that Fairbanks had arrived at for DeVoe’s property with appraised values that he or the DOR had arrived at for four other properties which he contended were similar. It also listed four additional properties which he contended were similar, and the cost per square foot at which those properties had sold. For Property No. 2, Fairbanks submitted an exhibit which listed appraisals of three properties he considered similar, and sales of 12 other properties.
On cross-examination by DeVoe, Fairbanks was asked whether he had any records which would document the sale prices of any of the pieces of property listed on the two exhibits he had offered. Fairbanks answered that he had nothing to document the comparable sale values he had relied on, other than his own list of values included in the exhibits. He explained that he had gotten the information about the sales from appraisers, realtors, and principals involved in the sales, but that he had no written documentation of those values.
Based on further questioning, Fairbanks then explained that a lot of the information pertaining to sales was available on realty transfer certificates (RTCs) but that those could neither be disclosed to the STAB nor to DeVoe because they were confidential pursuant to § 15-7-308, MCA. Realty transfer certificates are documents which indicate the consideration paid when real estate is transferred and which must be filed with the county clerk and recorder, along with any instrument or deed evidencing the transfer of real estate. The form of the RTC is established by the DOR, and after filing, the clerk and recorder is required by statute to provide each certificate to the DOR. Section 15-7-305, MCA. They have been required since 1975. Their purpose is to provide sales data to the DOR to further its interest in uniformity of real estate assessments and give a reliable indication of market value. Section 15-7-302, MCA.
DeVoe objected to Fairbanks’ testimony about the value for which other properties had been sold on the grounds that it was hearsay and that without production of the RTCs pertaining to each of those properties, DeVoe could not confirm the accuracy of Fairbanks’ testimony.
At the conclusion of his testimony at the first STAB hearing, when addressing the reliability of his statements regarding comparable sales, Fairbanks testified that:
The sales are authenticated much the same way any appraiser goes out and determines that the sales did, indeed, take place. We know, of course, from deed transfers that the date is accurate and the principals are accurate ... and through realty transfers about the value that they put on the property.... Often that is not always the same and we must confirm before any of that is before this board.
Fairbanks left no doubt that, not only did the DOR depend on RTCs to document the value for which comparable properties had exchanged hands, but that the RTCs were absolutely necessary for that purpose in order to avoid inaccuracy.
On October 15, 1986, the STAB issued its opinion and order in which it concluded that DeVoe had failed to prove that the County Board’s decision was erroneous, and therefore, had failed to sustain his burden on appeal. For that reason, his appeal was denied. No other findings or conclusions were provided.
DeVoe petitioned the District Court in Missoula County to review the STAB’s decision pursuant to § 15-2-303, MCA. On appeal, DeVoe contended that the STAB decision was clearly erroneous and that he was denied a fair hearing when he was not permitted to confirm the accuracy of the DOR’s comparable sales evidence by examining the RTCs which pertained to those sales. In this first appeal, the DOR responded that it had relied on the cost of construction method of appraisal which, in itself, was sufficient evidence to sustain the STAB decision, and that DeVoe did not have a right to examine the RTCs because they were not, in fact, relied on by the DOR to arrive at the consideration paid for comparable sales.
On July 22, 1988, the District Court held that DeVoe was not entitled to examine the RTCs pursuant to our decision in O’Neill v. Department of Revenue (1987), 227 Mont. 226, 739 P.2d 456, because in that case the DOR had actually relied on RTCs to establish the value of comparable sales, whereas in this case, they had not. Since the District Court concluded that the DOR could rely on evidence of comparable sales without producing copies of the RTCs pertaining to those sales, it concluded that there was sufficient evidence to support the decision of the STAB.
Subsequent to the District Court’s decision, on August 9,1988, we decided DeVoe v. Department of Revenue (1988), 233 Mont. 190, 759 P.2d 991, involving the same parties now before the Court. In that case, we held that the DOR did have an obligation to produce the RTC information pertaining to the comparable sales on which it relied when it appraised DeVoe’s property. Based on that decision, DeVoe moved the District Court, with John S. Henson presiding, to alter or amend its previous order. The District Court granted DeVoe’s motion pursuant to Rule 59(g), M.R.Civ.R, and held that without production of the RTCs in question there was not substantial evidence sufficient to sustain the decision of the STAB. The District Court ordered the DOR to disclose to DeVoe the relevant RTCs and remanded this case to the STAB for consideration of whatever RTCs were produced, and to consider whether they formed an appropriate basis for the valu ation of DeVoe’s property. The District Court also ordered the STAB to make specific findings of fact regarding the applicability of each RTC which it considered, and to make other specific findings of fact and conclusions of law which were necessary to support its decision.
The second hearing was held before the STAB on July 22,1991. At that hearing, DeVoe pointed out that nine RTCs were produced by the DOR and that only one of them actually pertained to those properties listed by the DOR as comparable sales.
At the second hearing, DeVoe also called Robert Lovegrove, a licensed real estate broker in Missoula, as a witness. He testified that for 13 years he had conducted appraisals of commercial properties in Missoula. He also taught real estate courses offered through the Business School at the University of Montana.
Lovegrove reviewed the RTCs provided by the DOR and agreed that six out of the nine dealt with four- or eight-plex apartment emits. He testified that those were not a valid basis for appraising large apartment complexes like the properties which were the subject of DeVoe’s appeal. He also testified that he had reviewed all of the properties listed on the RTCs, except for one transaction which involved the sale of three four-plexes. Based on his review, it was his opinion that they did not provide a basis for comparison to DeVoe’s property.
Lovegrove also testified that in 1982 (the year in which DeVoe’s property was appraised for the 1986 cycle) Missoula was in a significant recession and property values were not increasing from what they had been in the 1970s. He testified that they had leveled off and begun to decline. Specifically, he testified that the market for large multi-family complexes (like those owned by DeVoe), as opposed to four unit or eight unit buildings, was nonexistent, that no transfers had even occurred during the time frame of the DOR’s appraisal, and that was why no comparable sales had been relied on.
Jim Fairbanks was again called as the DOR’s only witness at the second STAB hearing. He testified that the previous appraisal cycle for DeVoe’s property began in 1978 and ended in 1986, and that the current cycle, which was the subject of DeVoe’s appeal, began in 1986 and would end in 1993. The base year for appraising the property for the cycle beginning in 1978 was 1972. The base year for the cycle beginning in 1986 was 1982.
Fairbanks described three approaches to valuation of real estate. They included the cost approach, the market data approach, and the income approach. He testified, for the first time, that in appraising DeVoe’s property he used the cost approach and then used the market data approach to check the validity of his appraisal. He explained that the cost approach measures the cost of replacing the property and then allows a deduction from that value for wear, tear, and depreciation.
Fairbanks testified that he had been unable to find RTCs for all of the properties he had originally listed as comparable sales. However, he then explained that he had not relied on RTCs when he put together the list of comparable sales in the first place. He testified that he came by that information from others during the normal course of his appraisal activities. He also acknowledged that there were no sales of larger multi-family units, such as those owned by DeVoe, during the early 1980s when he prepared his appraisal of DeVoe’s property.
The second STAB decision was entered on August 7, 1991. The extent of its findings and conclusions entered pursuant to the District Court’s order on remand were as follows:
FINDINGS OF FACT
1. RTCs identified as 1-4,2-10, 3-11,4-12, 5-13, 6-21, 7-24, 8-24, and 9-28A were received in evidence.
2. The taxpayer presented evidence to show that the RTCs in question were not sufficiently similar properties to use as a comparable basis for valuing the taxpayer’s property.
3. The DOR presented evidence to show that the RTCs were used only as a cross-check of the values it had already placed on the subject property and were not used in any way to form a basis for valuing the subject property.
4. The RTCs referred to above were not used to form a basis for valuation of the taxpayer’s property and for that reason are irrelevant to the issue of valuation.
CONCLUSIONS OF LAW
1. The Board will not rely on any of the RTCs referred to above as evidence of the valuation of the subject property.
2. The previous determination of the Board as to the value of the subject property remains unchanged.
On October 7,1991, DeVoe filed a second petition for review in the District Comb for Missoula County. This time his petition was assigned to the Honorable Ed McLean. He alleged that the STAB had rendered a final decision denying his appeal of the appraised valuation of his properties, and that therefore, he had exhausted his administrative remedy for all of the years included in the appraisal cycle to which those valuations applied. He also alleged that the appraised valuation had not changed during any year since his original appeal, which was brought in 1986.
In his petition for review, DeVoe also alleged that he had filed appeals to the Missoula County Board and the STAB from the appraised values of these same properties for the years subsequent to 1986, but that both boards refused to render a decision following those appeals based on administrative rules which provide that final decisions of the STAB are binding on subsequent years during which the same valuations are applicable unless altered by judicial review, change in use of the property, or reevaluation by the DOR.
Finally, DeVoe contended on appeal that because the first STAB decision was reversed and remanded based on insufficiency of the DOR’s evidence, and because no additional relevant evidence was offered by the DOR, that neither is the second STAB decision based on credible evidence. He contended that the DOR value was contrary to the requirements of § 15-8-111, MCA, and asked the District Court to reverse the STAB’s final decision and reinstate an appraised value for his properties equal to the value prior to the DOR’s 1986 reappraisal. He also asked, pursuant to § 15-1-402, MCA, for an order directing the county treasurer to refund those excess taxes which he had paid under protest.
The DOR filed a motion to dismiss DeVoe’s petition on the grounds that it was untimely, but did not otherwise respond by pleading to the allegations of his petition.
On June 25,1992, the District Court entered its opinion, order, and judgment reversing the second decision of the STAB, granting the relief sought by the petitioner, and in addition, awarding DeVoe his attorney fees incurred through this extended appeal process.
The District Court observed that even though the STAB concluded that the RTCs which were ultimately produced were irrelevant to the issue of valuation and could not be relied on as evidence, it did not hear any additional credible evidence to support its original decision, but instead summarily concluded that its original October 15, 1986, decision was correct.
The District Court concluded that Judge Henson’s original order correctly concluded that the STAB’s original decision was not supported by substantial credible evidence, and that since no additional evidence was provided during the remand hearing, the STAB’s decision was clearly erroneous pursuant to § 2-4-704(2)(a)(v) and (vi), MCA. The court concluded that no evidence of multi-family apartment complexes similar to DeVoe’s were produced dining the relevant time period, and that the comparable sales evidence which was offered involved properties which were not really comparable.
In light of the testimony by Robert Lovegrove that large multi-family apartment complexes had not increased in value from the late 1970s to the early 1980s when this appraisal was done, and in the absence of credible evidence to the contrary, the District Court concluded that DeVoe had met his burden of proving that the increased valuation of his property was not based on substantial evidence.
Based on these findings and conclusions, the District Court reversed the decision of the STAB and ordered that the valuation of DeVoe’s property which was in effect prior to 1986 be continued to the present date.
The District Court further held that this result was justified by the STAB’s failure to issue specific findings of fact and conclusions of law which it had been directed to issue by Judge Henson’s original order.
Finally, the District Court expressed concern over the DOR’s inconsistent positions regarding the use of RTCs. It cited the DOR’s original argument that they were confidential and not available; its subsequent production of nine RTCs, most of which were irrelevant; and its final position that RTCs are a nonissue because they were not relied on when the property was originally valued. Based on what the court perceived to be the inconsistency of the DOR’s conduct and the protracted nature of these proceedings which it concluded resulted from that conduct, the court concluded that DeVoe was entitled to an award of costs and attorney fees.
In summary, the DOR’s reappraisal was reversed; it was ordered to reinstate the value of DeVoe’s property as it had been prior to 1986; the Missoula County Treasurer was ordered to refund taxes paid by DeVoe for all years included in that appraisal cycle to the present time; and the DOR was ordered to pay costs and attorney fees to DeVoe which were incurred during the series of appeals from the DOR’s appraisal.
I.
Did the District Court err when it ordered the DOR to assess the value of DeVoe’s property for the appraisal cycle beginning in 1986 based on its assessed value prior to that date?
The DOR’s first contention on appeal is actually two-fold. First, it contends that the District Court’s scope of review of the STAB decision was limited pursuant to § 2-4-704, MCA, to a determination of whether the STAB’s decision was clearly erroneous, and that the District Court may not substitute its judgment for that of the STAB. Second, the DOR contends that even if the STAB’s decision was clearly erroneous, the District Court erred by independently determining the correct valuation for DeVoe’s properties because according to our prior decisions, the STAB is uniquely qualified to perform that fact-finding function.
In support of its contention that the District Court exceeded its proper scope of review when it reversed the decision of the STAB, the DOR contends that it offered substantial credible evidence of the value of DeVoe’s property pursuant to the cost of replacement method, and that since that method of appraisal is specifically authorized by § 15-8-lll(2)(b), MCA, the STAB’s decision based on that evidence was not clearly erroneous.
Before we discuss the merits of the DOR’s argument, we make the following observation regarding the District Court’s scope of review pursuant to § 2-4-704, MCA. That section provides in relevant part that:
(2)... The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because:
(b) findings of fact, upon issues essential to the decision, were not made although requested.
In this case, the District Court’s reversal of the STAB was justified on the basis of this provision alone. When he first remanded this case to the STAB, Judge Henson instructed the STAB to make specific findings of fact which supported its decision. However, other than those findings which related to realty transfer certificates, the STAB made no findings which supported its decision. After six and one-half years of litigation and still no satisfactory explanation for the STAB’s decision, the District Court was fully justified when it concluded that substantial rights of the taxpayer were prejudiced because of the STAB’s refusal to support its decision factually.
With regard to the DOR’s argument that evidence of cost alone was sufficient to support its appraisal, we note that § 15-8-111(1), MCA, establishes the basis upon which all property must be assessed in Montana. It provides that:
All taxable property must be assessed at 100% of its market value except as otherwise provided.
(2)(a) Market value is the value at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
It is true that the very next paragraph found at § 15-8-lll(2)(b), MCA, states that the DOR may use “construction costs as one approximation of market value.” However, we hold that evidence of construction costs alone, without consideration of any market factors, does not satisfy the requirement of § 15-8-111(1), MCA, that the assessed value equal market value. To the extent that this holding is inconsistent with our decision in Northwest Land v. State Tax Appeal Board (1983), 203 Mont. 313, 661 P.2d 44, that decision is overruled.
Market value depends on the price that a willing buyer would pay a willing seller, taking into consideration relevant facts. Presumably, relevant facts would include the market and economic conditions prevailing at the time of sale.
Logic tells us that there may not be a buyer willing to purchase every 30-unit apartment complex that contractors in Missoula can build at the cost for which they are constructed. If there was, there would be no reason to ever end construction of new apartment houses.
We further hold that when market data is relied on by the DOR to establish assessed value of real property in Montana, and when the taxpayer whose property is being assessed appeals that assessment and requests copies of the RTCs pertaining to the properties that are being compared, they must be produced according to the procedures set forth in our decision in O’Neill, whether or not they were the source from which the DOR arrived at the values of comparable sales. These documents were created by statute to provide sales price data which would promote uniformity of real estate assessments in an efficient, economic, and reliable manner. The DOR is required by statute to retain the RTCs as records. Because they are the most uniform and efficient way for the DOR to establish market value, they are also the most effective and efficient way for the taxpayer to verify the values relied on by the DOR. There is no other practical way for the taxpayer to verify information informally gathered by the appraiser during the normal course of his duties. Therefore, we conclude that fairness and procedural due process require that where market value is established by the DOR based on sales of comparable property, and because the DOR is required by statute to keep a specific record of the consideration for which real property changes hands in Montana, this information should be provided to a taxpayer who appeals the appraised value of his or her property.
In this case, the STAB concluded that the RTCs provided by the DOR to DeVoe were irrelevant to his appraisal, and for the most part, did not pertain to those comparable sales on which it relied to corroborate the appraisal it arrived at through the cost approach. Furthermore, no other evidence of market value was offered by the DOR to rebut the testimony offered by DeVoe to the effect that his property had not increased in value, but had probably declined in value since the previous appraisal cycle. Therefore, we affirm the District Court’s conclusion that there was not substantial evidence to support the STAB’s decision and that it was, therefore, clearly erroneous.
As the second part of its first argument, the DOR contends, relying on our prior decisions in Department of Revenue v. Paxson (1983), 205 Mont. 194, 666 P.2d 768, and Department of Revenue v. Grouse Mountain Development (1985), 218 Mont. 353, 707 P.2d 1113, that the District Court exceeded its authority when it arrived at the proper valuation of DeVoe’s properties, instead of remanding his appeal to the STAB for that purpose. However, the facts in this case are distinguishable from the facts in the cases relied on by the DOR. In both Paxson and Grouse Mountain, we found fault with district courts which assumed the fact-finding function by resolving factual issues related to taxable valuation. In this case, the District Court did not impose its own opinion regarding taxable valuation. The District Court held that, as a matter of law, the DOR presented no credible evidence to justify increasing the appraised value of DeVoe’s property by an amount in excess of 100 percent from one appraisal cycle to the next. The District Court held that neither did the DOR offer evidence that the appraised value of DeVoe’s property should be increased at any other rate, and therefore, that the appraised value should remain at the amount previously established by the DOR based on its own appraisal.
The approach taken by the District Court is similar to the approach adopted by this Court in Department of Revenue v. Barron (1990), 245 Mont. 100, 115, 799 P.2d 533, 542, where we held that:
(3) The valuation for tax year 1990 of the residential property of Patricia C. Barron in Area 2.1 established by STAB should be and is hereby reversed, and STAB and all agents of the DOR shall fix the appraised value of said residential property of Patricia C. Barron at the valuation which was obtained in the tax year 1989.
We conclude that the District Court did not err when it ordered the DOR to establish the appraised value of DeVoe’s property in the amount at which it had been appraised by the DOR prior to 1986.
II.
Did the District Court err when it ordered the DOR to apply the assessed value of DeVoe’s property for 1986 to subsequent years during the same appraisal cycle?
The DOR contends that because this appeal, which began in 1986 and was finally resolved in 1991, dealt only with the appraised value of DeVoe’s property for that year, that the District Court should not have considered subsequent years during the same appraisal cycle because DeVoe had not fully exhausted his administrative remedies by appeals to the County Board, then to the STAB, then to the District Court for each subsequent year. The DOR relies on our decision in DeVoe v. Missoula County (1987), 226 Mont. 372, 735 P.2d 1115, for the principle that administrative remedies had to be exhausted for each year during which taxes were paid under protest.
DeVoe, however, in the petition which gave rise to the second District Court decision, alleged that he had attempted to appeal assessments for years subsequent to 1986 to the County Board and to the STAB, but that those boards would not consider his appeals because of an administrative rule which made the STAB’s decision affirming the DOR’s appraisal binding for the remaining years of the appraisal cycle. The DOR did not deny this allegation.
We conclude that the prior decision relied on by the DOR is distinguishable on its facts, and that based on the DOR’s administrative rule 2.51.403(2), ARM, the District Court’s conclusion was correct as a matter of law.
In the earlier DeVoe decision, the taxpayer had filed a complaint in the District Court challenging the appraisal of his real property for the year 1985, even though he had not administratively appealed the appraisal of his property for that year. We held that because the complaint did not allege that he had exhausted his administrative appeals, the complaint was inadequate on its face. However, in this case, DeVoe alleged that he had paid taxes under protest for 1986 and each year subsequent thereto, and that his taxes during each year were based on the same appraised valuation which was the subject of his original administrative appeal begun in 1986.
He also alleged that he had filed appeals during subsequent years, but that subsequent to their original decisions, both the County Board and the STAB refused to render a decision in those appeals pursuant to the DOR’s administrative rules which provide that final decisions of the STAB are binding on all interested parties for subsequent years during which the same valuations are applicable.
The administrative rule referred to in DeVoe’s petition for review is 2.51.403(2), ARM, which provides as follows:
With respect to taxable real property and improvements thereon, the decision of the state tax appeal board shall be final and binding unless reversed or modified by the district court upon judicial review. If the decision of the state tax appeal board is not reviewed by a district court, it is final and binding for subsequent tax years unless there is a change in the property itself or other circumstances surrounding the property which affect its value. Statutory reappraisal by the department of revenue pursuant to 15-7-111, MCA, is a circumstance affecting the value of real property and improvements thereon.
In this case, the District Court reversed the STAB’s decision and ordered the DOR to reinstate the appraised value that it had arrived at prior to the appraisal cycle which began in 1986. That, then, became the appraised value of DeVoe’s properties for 1986, and according to the DOR’s own administrative rules, was binding on subsequent years during the same appraisal cycle. The only exceptions were for a change in the property itself which affected its value, or reappraisal by the DOR. However, there was no indication in the record that anything changed about the nature of the property which would have affected its value. The DOR did not deny that the same appraised values applied for each year in question subsequent to 1986, and the DOR’s appraiser, Jim Fairbanks, testified that there would be no reappraisal of DeVoe’s property until 1993.
Therefore, in this case, DeVoe attempted to exhaust his administrative appeals but was unable to do so based upon the DOR’s administrative rule which precluded appeals during the same appraisal cycle. Furthermore, pursuant to that same rule, the appraised value which the DOR was ordered to reinstate by the District Court was applicable to the subsequent years in question, and therefore, applied as a matter of law as a result of the District Court’s decision which we have affirmed. To require DeVoe to exhaust more administrative remedies than he has already exhausted would be a useless act, and neither law nor equity require useless acts.
We affirm the District Court’s application of the 1986 appraisals of DeVoe’s property to subsequent years during the same appraisal cycle.
III.
Did the District Court err when it ordered the Missoula County Treasurer to provide DeVoe with a refund for 1986 and subsequent years diming the same appraisal cycle?
The DOR contends that neither the County Treasurer nor the County was served with a copy of DeVoe’s second petition, and therefore, pursuant to § 15-1-402, MCA, the District Court had no authority to order the County to refund taxes to DeVoe.
DeVoe contends that the County was given notice of his petition for review when it was served with his first petition and that the ultimate decision of the District Court ordering repayment of taxes paid under protest was simply a result of the same appeal process begun in 1986. DeVoe contends that if there was a requirement of notice to the County, it was satisfied when the County was served with his first petition.
Section 15-1-402, MCA, does not require notice to the county or the county treasurer when an appeal is filed pursuant to § 15-2-303, MCA. It requires that a taxpayer who pays taxes under protest must specify to the county treasurer the specific grounds for the protest when the taxes are paid and before the taxes are due. That statute then provides, at § 15-l-402(6)(b), MCA, as follows:
If the action is finally determined adversely to the department of revenue, a county, a municipality, or the treasurer of the county or a municipality, then the treasurer shall, upon receiving a certified copy of the final judgment in the action from the state tax appeal board or from the district or supreme court, as appropriate, if the final action of the state tax appeal board is appealed in the time prescribed, refund to the person in whose favor the judgment is rendered the amount of the protested portions of the property tax or fee deposited in the protest fund, and not released pursuant to subsection (5), as the person holding the judgment is entitled to recover, together with interest from the date of payment under protest....
The only reference in the appeal statutes to notice to the treasurer or the county is found at § 15-2-303(3), MCA, which provides as follows:
If the judicial review involves a taxpayer who is seeking a refund of taxes paid under protest, the appealing party shall provide a copy of the petition to the treasurer of the county in which the taxable property or some portion of it is located, but failure to do so has no effect on the judicial review.
The plain language of the only statute which required DeVoe to provide the County or its Treasurer with notice, provides that lack of notice is not fatal to the relief sought on review.
Therefore, we conclude that even if a second notice to the County was required, DeVoe’s failure to provide that notice did not legally deprive him of the right to a refund of those taxes he paid under protest pursuant to § 15-1-402, MCA.
IV.
Did the District Court err when it awarded attorney fees to DeVoe?
As part of its decision, the District Court concluded that the DOR had acted in bad faith by taking inconsistent positions with regard to the relevance of RTCs, and therefore, that DeVoe was entitled to recover his attorney fees pursuant to § 25-10-711, MCA. That section allows the court to award attorney fees to a successful person in any action against the State if he or she prevails and the court finds that the State’s defense or claim was frivolous or pursued in bad faith.
The DOR contends that by awarding attorney fees the District Court exceeded the issues framed by the parties because DeVoe neither requested attorney fees in his petition nor in any of the written briefs filed with the District Court. Furthermore, the DOR argues that its position could not have been in bad faith when it was upheld by the Missoula County Tax Appeal Board, by the STAB on two separate occasions, and on one occasion by the District Court. The District Court, acting through Judge Henson, only changed its position based upon this Court’s decision in DeVoe v. Department of Revenue, 759 P.2d at 991, which was decided subsequent to the District Court’s original decision.
DeVoe responds that attorney fees under the circumstances in this case are specifically authorized by § 25-10-711, MCA, and were appropriate based upon the DOR’s inconsistent legal and factual arguments. He also contends that the District Court was authorized to impose an award of attorney fees under its equitable power when justice so requires.
We have reviewed the record on appeal and understand the District Court’s frustration with the DOR over what appear to be inconsistent positions at various stages of this appeal, and the incredible delay which has occurred as a result of these seemingly contradictory positions. We also agree that when attorney fees are sought in tax appeals, and the necessary facts are established, they may be awarded pursuant to § 25-10-711, MCA. However, we conclude that when relief that is as substantial as the attorney fees which are at issue in this case is sought by a party to litigation, the other party is entitled to prior notice that such relief is being sought and an opportunity to address the merits of granting such relief. Therefore, based on DeVoe’s failure to notify the DOR that he, in fact, sought an award of attorney fees in either his petition or his arguments to the District Court, and based upon the DOR’s lack of opportunity to address the issue of attorney fees prior to the time they were awarded, we reverse that part of the District Court’s judgment.
We reverse the District Court’s award of attorney fees, and otherwise affirm the order, findings, and judgment of the District Court in all respects. This case is remanded to the District Court for entry of judgment consistent with this opinion.
JUSTICES HARRISON, HUNT, NELSON and DISTRICT JUDGE HONZEL, sitting for CHIEF JUSTICE TURNAGE concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON:
A motion to dismiss the above-entitled case was filed by the State of Montana on June 14, 1962. On June 1, 1962, this Court issued an order to show cause as to why the appeal should not be dismissed. On June 18, 1962, an answer and return was filed. Having reviewed the file, the answer and return and finding no justiciable issue to be determined on the appeal, it is ordered that the appeal be and it is hereby dismissed.
MR. JUSTICES ADAIR, DOYLE, CASTLES and JOHN C. HARRISON concur.
|
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MR. JUSTICE CASTLES,
delivered the Opinion of the Court.
This is an appeal by Everett W. Gross, then a licensed attorney practicing in the city of Helena, Montana. Gross will hereinafter be referred to as the appellant or Gross. Gross is appealing a judgment entered in his favor in the amount of $199.25. In his amended complaint Gross had alleged that he was owed a total of $1200. The action in the court below, which was had without jury, concerned money allegedly due the appellant on a contract for the performance of legal services.
The defendants in the court below counterclaimed for money allegedly owed them on a settlement effectuated by the appellant. The denial of the counterclaim is also appealed. For convenience the cross appellants will be referred to as the respondents.
The defendant corporation, Union Contractors Ltd., was duly organized under the laws of the province of British Co lumbia. Holzworth, at all times material to this action, was president of that corporation.
Prior to December 4, 1962, Holzworth, desirous of obtaining legal representation for his company in various claims which the company intended to litigate, went to see Stanley Sorenson, then a licensed attorney practicing in the city of Helena.
Mr. Sorenson had as an associate the plaintiff and appellant in this case. Appellant given the task of investigating the various claims of Holzworth. He found several of them to be meritorious.
Consequently Holzworth and Sorenson entered into a contract for legal services in a suit against the First National Bank of Bonners Ferry, Idaho, now a part of the Bank of Idaho. The contract is as follows:
“This contract made and entered into this 4th day of December, 1962, by and between DICK HOLZWORTH of Helena, Montana, individually and acting as President of Union Contractors Ltd., and on their behalf, hereinafter referred to as client and STANLEY P. SORENSON of Helena, Montana, hereinafter referred to as Attorney, to-wit:
“WHEREAS, Client has certain causes of action against The First National Bank of Bonners Ferry, Idaho, now a part of the Bank of Idaho, Harold McNally of Bonners Ferry, Idaho, and C. W. Thornton of Troy, Montana, and is desirous of employing attorneys to recover for him and them such sums of money as may be rightfully due them.
“IT IS HEREBY AGREED by and between the parties that Client will give full cooperation to Attorney in all particulars in effecting such recovery and in the institution and prosecution of any necessary litigation and that Attorney will diligently perform all services needed and required to effect such recovery, including the institution of litigation and necessary appeal thereof.
“That the consideration for such services by Attorney shall be as follows:
“Twenty-five percent of any funds recovered without instituting suit.
“In the event any suits are necessary and are instituted, forty per cent of any sums recovered.
“In the event that any appeal from any lower court decision is necessary, fifty per cent of such sum recovered.
“IT IS FURTHER AGREED that the cash out of pocket expenditures made shall first be deducted from any amount recovered before the aforementioned division of recovery.
“IT IS FURTHER AGREED that client will arrange for and pay Attorney for cash out of pocket expenditures in the attempt to effect the recovery and the institution and prosecution of litigation.”
"We note here that obviously the contingent fee is based on the net of the settlement; yet as will appear, appellant took it on the gross settlement.
It is undisputed that appellant worked on several of the cases involving the respondents. It is also clear that he took almost complete charge of the action against the Idaho Bank, the action specifically covered by the contract.
The trial court found in its order finding facts and conclusions of law that though the contract referred to only one particular case, the parties acted in reliance upon the contract as though it covered all litigation in which the respondents were represented by the appellant.
The trial court further found that appellant advanced sums of money for costs and expenses in connection with the various cases in litigation, and that the defendant used the plaintiff’s gasoline and telephone credit cards.
The trouble between the parties apparently began with the particular item of litigation expressly mentioned in the contract. It became obvious that the case could be settled before trial for the sum of $35,000. On June 12, 1964, respondent Holzworth signed an authorization to this effect.
There was however, some misunderstanding as to how the proceeds of this settlement were to be distributed between appellant and respondent. Holzworth testified that it was his understanding that the corporation would receive $25,000. Sorenson testified that he knew that this was Holzworth’s understanding, but that he left it up to the appellant and respondent to finally decide the matter. Appellant testified that he knew of respondent’s desire to have such a division, but that no agreement to this effect was ever reached. There is no evidence in writing that the original division contemplated in the contract was in any way modified.
Gross for some reason felt constrained to bring into the case one A. E. Sheridan, a licensed attorney practicing in the state of Iowa. Holzworth did not particularly like this, but left it up to Gross. Mr. Sheridan carried on the final negotiations with the bank of Idaho.
When the settlement of the dispute between respondent and the bank was reached, respondent was presented with a draft for $21,000, while the attorneys received a separate draft for $14,000. These sums represent the division of the funds contemplated under the original contract, except that, as remarked before, the “out of pocket expenditures made shall first be deducted * * * before the aforementioned division of recovery.”
Appellant failed to deduct any of the expenses of the litigation from the total amount of the settlement undertaken, though this was called for in the contract. Appellant expressed the feeling that he would get the money when the other litigation involving the respondents was completed.
Holzworth was however very dissatisfied with the settlement. Eelations between the two parties became quite strained, and Gross eventually withdrew from representing Holzworth.
As part of his original complaint, appellant attached an exhibit containing an itemized list of the expenses allegedly owed him. These expenses were broken down thusly:
“Charges made by defendants to Everett W. Gross gasoline credit cards and gasoline account paid by Everett W. Gross for defendants...................... $ 222.95
Telephone calls and charges made by defendants to telephone credit card of Everett W. Gross............ 49.37
Balance due Everett W. Gross for expenses from the settlement Holzworth v. Sime.......................... 323.84
Expenses in Union Contractors v. Thornton and Union Contractors v. Thornton and Stephenson .. 160.06
Expenses in Union Contractors v. McNally et al..... (453.86)
Less $35.00 paid ............................................................ 418.86
Holzworth v. Continental Contractors (Canada) .. 13.50
Holzworth v. Miles City Bank, expenses.................. 132.10
Holzworth v. Kathan, expenses.................................. 23.17
Miscellaneous expenses ................................................ 63.80
$1,409.65”
The trial court found:
“* * * That said account sets forth items not covered by said contract, and items legally waived by the plaintiff. The following items set forth are not due the plaintiff by the defendants, less the sum of $35.00 previously received by the plaintiff:
“7/25/63 Sheriff, Bozeman, Montana ........................ $ 10.60
7/12/63 Husky Oil Co., Defendant’s Account........ 15.11
8/19/63 Husky Oil Co., Defendant’s Account........ 7.01
9/3/63 Husky Oil Co., Defendant’s Account........ 14.81
9/17/63 Piling fee, Crestón B. C............................... 5.50
10/1/63 Husky Oil Co., Defendant’s Account........ 11.00
10/4/63 Husky Oil Co., Defendant’s Account........ 2.08
11/14/63 Sheriff, Libby, Montana.............................. 16.69
11/20/63 Sheriff, Libby, Montana.............................. 10.00
12/9/63 Husky Oil Co., Defendant’s Account........ 20.59
11/22/63 Husky Oil Co., Defendant’s Account........ 2.29
12/20/63 Clerk, Miles City Court................................ 2.00
12/31/63 Sheriff, Libby, Montana.............................. 10.37
1/6/64 Husky Oil Co., Defendant’s Account........ ■ 7.75
1/6/64 Husky Oil Co., Defendant’s Account........ 6.20
2/6/64 USF & G, Bond.............................................. 10.00
2/29/64 Husky Oil Co., Defendant’s Account........ 6.45
2/19/64 Telephone, Vancouver BC .......................... 2.45
2/29/64 Seal .................................................................. 9.50
3/21/64 Husky Oil Co., Defendant’s Account........ 6.56
4/20/64 Husky Oil Co., Defendant’s Account........ 3.50
3/64 Telephone account ........................................ 4.55
5/9/64 Middlemas, Sheriff ...................................... 1.60
5/9/64 Husky Oil Co., credit card.......................... 7.22
5/6/64 Telephone, Butte to Miles City.................. 2.47
5/19/64 Vancouver telephone .................................... 2.55
5/64 Husky Oil Co., Defendant’s Account........ 25.40
7/22/63 USF & G, Bond.............................................. 10.00
Total ................................................................ $234.25
Less $35.00 paid............................................ 35.00
Due .................................................................. $199.25
-•-
“V.
“That the defendants have not established facts authorizing them to relief under the allegations of the counter claim.”
In reviewing the correctness of the trial court’s decision, we adhere to a long line of decisions in which we have held that we will not disturb the trial court’s findings unless there is a decided preponderance of evidence against these findings. Larsen Farms v. City of Plentywood, 145 Mont. 509, 402 P.2d 410; Kosel v. Stone, 146 Mont. 218, 404 P.2d 894; Hurly v. Hurly, 147 Mont. 118, 411 P.2d 359; Dufie v. Metropolitan Sanitary & Storm Sewer Dist. No. 1, 147 Mont. 541, 417 P.2d 227; Studer Const. Co. v. Rural Special Impr. Dist. No. 208, 148 Mont. 200, 418 P.2d 865; Interstate Manufacturing Co. v. Interstate Products Co., 151 Mont. P. 163, 439 P.2d 911.
However we cannot see that there is a decided preponder anee of the evidence against the findings of the triál court as to the amount of expenses owed the appellant under the contract which were not waived and which were covered by the contract.
Assuming that the trial judge was correct in his findings of fact that the contract in question covered all litigation in which respondent was represented by Mr. Gross, and we find no evidence to the contrary, the same rules of law still cannot be applied to all the money allegedly owing, for the reason that the items of litigation were in various stages of completion.
The contract contains two provisions covering the reimbursement of the attorney for out of pocket expenses. The first of these contemplates reimbursement when the litigation has been successfully completed. The second contemplates reimbursement for expenses before recovery has been made. Given the fact that this is a contingent-fee contract, this second provision obviously was intended to give the attorney compensation for his expenses even if the litigation was not brought to a successful conclusion.
The first of the two provisions providing for reimbursement imposes a charging lien upon the proceeds of the suit for expenses, as provided in the statutes of this state. See R.C.M.1947, Section 93-2120.
However it is generally held that such a lien may be waived. “A charging lien is deemed to be waived if the attorney neglects to enforce it until the debtor has in good faith discharged the liability under the judgment * * *. So too, there is a waiver if the attorney agrees that the proceeds of judgment shall he remitted as collected, and that he shall receive payments at stated intervals * * (Emphasis added). Am.Jur.2d Attorneys at Law, Yol. 7, § 292, p. 209.
Several of the items which appellant alleges are owed to him are expenses for actions which have been brought to a successful conclusion. Therefore they would be covered by that portion, of the contract which imposes a charging lien upon the proceeds of the suit.
One expense presented in the appellant’s itemized list of expenses is for $323.84. This sum represents expenses in the settlement of the case of Holzworth v. Sime. Gross did deduct some of the expenses from the amount obtained in that suit before the proceeds were divided. He expressed the belief that he would obtain the remainder later on from sums obtained in future litigation. We are of the opinion that his failure to deduct this amount from the award in the Sime case and his expressed intention that he would collect it from future settlements constituted a waiver of his charging lien.
This amount was deducted, and we think properly so, by the trial judge from the amount of expenses awarded the appellant.
The ease concerning the Bank of Idaho had also been settled. Appellant failed to deduct the expenses for that ease from the top of the settlement before the division of the money was made. Again he apparently felt that he would be reimbursed from awards gained in future litigation. His actions again constituted a waiver of his lien for expenses upon that suit.
It is obvious from a reading of the list of itemized expenses allegedly owed the appellant that some of them resulted from the prosecution of the Bank of Idaho case. These expenses were waived. Several of these items were removed by the trial judge when he made his decision as to what expenses were owed the appellant. He, the trial judge, was in a much better position to determine which of the expenses allegedly owed resulted from the Bank of Idaho case. We cannot say that there is a preponderance of the evidence against his findings in this respect.
The other expenses allegedly owed the appellant derive from cases which, at the time Gross withdrew from representing the respondent, had not been settled. They would therefore be covered by that portion of the contract calling for compensation for expenses even though the litigation had as yet not been completed.
That provision of the contract referring to compensation for expenses before the completion of the action clearly states that the compensation will be for expenditures, “* * * in the attempt to effect the recovery and the institution and prosecution of litigation.” Clearly expenditures made by the appellant and the respondent which did not affect the institution and prosecution of litigation would not be awardable under the contract.
A reading of the record and the exhibits reveals that there is nothing but the bare assertion of the appellant that the expenses listed were related to any attempt to “effect the recovery and the institution and prosecution of litigation.” The appellant simply failed to establish that many of the expenses charged were covered by the contract.
Indeed there is some evidence that some of the expenses admittedly made by the respondent were of a purely personal nature and completely unrelated to any litigation.
The trial court ruled that the total of such expenses incurred in relation to the various items of litigation was $199.25. The trial judge was in a better position than this court to judge the facts of the situation. We cannot say that there is a preponderance of the evidence against his findings. Therefore they will be allowed to stand.
As to the respondent’s cross appeal, we find it also to be without merit. The contract clearly states that in the event any suit was necessary or “instituted” the attorney was to receive forty per cent of the amount recovered.
The Revised Codes of Montana 1947, § 13-907 clearly state that: “A contract in writing may be altered by a contract in writing, or by an executed oral agreement, and not otherwise.” There was no evidence in the present ease of any contract either written or an executed oral contract that would vary the original contract. Therefore the terms of the original contract are binding and the respondent received all that he was entitled to from the settlement in the Bank of Idaho case.
For the foregoing reasons, the decision of the lower Court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES HASWELL, ADAIR and JOHN CONWAY HARRISON, • concur.
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On December 4, 1992, the Defendant was sentenced to Count I, ten (10) years for Attempted Escape; Count II, ten (10) years for Assault; Count V, ten (10) years for Possession of a Dangerous Weapon by a Prisoner. Said sentences are to run consecutively. However, the execution of the last ten years of said sentence is hereby suspended. The defendant is not entitled to any jail time credit. The present sentence is to run consecutively with the sentence imposed in Cause CDC-91-179. Additionally, the prison sentence is to run consecutively to the sentence imposed in Cause BDC-92-036. Plus all conditions ordered in the December 4, 1992 Judgment.
On July 23,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and represented himself. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall remain the same as originally imposed.
The reason for the decision is the sentence imposed by the District Court is presumed correct pursuant to Section 46-18-904(3), MCA. The Division finds that the reasons advanced for modification are insufficient to deem inadequate or excessive as required to overcome the presumption per Rule 17 of the Rules of the Sentence Review Division of the Montana Supreme Court.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. Robert Boyd, Judges
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal by the plaintiffs from an order of the district court, County of Custer, granting defendant’s motion for summary judgment.
Plaintiffs filed suit in the United States District Court, District of Montana, on December 1, 1972, seeking an order compelling Holy Rosary Hospital to permit James Ham, M.D., to surgically sterilize Claudia Ann Kransky in that hospital on December 13, 1972, when she was scheduled to deliver her third child by cesarean section. The complaint alleged the hospital, in refusing to permit its facilities to be used for surgical sterilization, was infringing upon rights secured to plaintiffs by the United States Constitution. The court dismissed the case on December 8, 1972, for want of jurisdiction. An opinion was subsequently issued explaining that the court found no state involvement in the hospital’s enforcement of its sterilization rules and therefore the court lacked jurisdiction under 28 U.S.C. § 1343. No appeal was taken from that decision.
Plaintiffs then filed their complaint in this action on December 11, 1972, seeking the same relief from the district court. On December 12, 1972, the court granted a temporary injunction restraining the hospital from enforcing its sterilization rules insofar as Mrs. Kransky was concerned.
Thereafter, on December 15, 1972, summary judgment was entered on the merits in favor of the hospital. In the interim, the sterilization was performed on Claudia Kransky. Although the case may be moot as to Mrs. Kransky, the issues remain with respect to Dr. Ham and members of the. class to which the named plaintiffs belong.
Plaintiff Claudia Ann Kransky at all times material to the issues was twenty-two years of age and married to plaintiff Richard Kransky. She is a resident of Miles City, Custer County, Montana, and a citizen of the United States. She had, prior to the instant pregnancy, a medical history of two prior cesarean sections. Following consultations with her attending physician, Dr. Ham, it was determined by plaintiffs that Mrs. Kransky should have a tubal ligation performed contemporaneously with her third scheduled cesarean section. For a number of personal reasons Mr. and Mrs. Kransky determined they -did not desire additional children. The sole purpose of the ■proposed tubal ligation was contraception. Excepting the customary and usual residual effects of three cesarean sections and the desire to avoid future pregnancies, Mrs. Kransky had mo medical indication for permanent sterilization.
Defendant Holy Rosary Hospital is a nonprofit Montana corporation. The members and corporate board of the corporation are members of the congregation of Presentation Sisters of Aberdeen. Presentation Sisters of Aberdeen is a religious congregation of sisters organized pursuant to authorization of the Roman Catholic Church. The corporate board, however, has delegated primary responsibility for control and administration of Holy Rosary Hospital to a board of trustees comprised of seven members of the Presentation Sisters of Aberdeen and four lay members. The hospital’s physical facilities at Miles City are owned by defendant Holy Rosary Hospital.
Originally established in 1906, Holy Rosary Hospital was rebuilt in 1950. The total cost of the physical facilities at that time was $1,560,500, of which approximately $77,600 was voluntary contributed by individual citizens of the community following an appeal to the public at large. In 1958, Holy Rosary Hospital received the benefit of approximately $70,000 voluntarily contributed by citizens of the community following an appeal to the public for funds to assist in operating the hospital. Except for these two fund drives the hospital has made no appeal to the public for voluntary contributions. It does receive unsolicited memorials and contributions from time to time of approximately $2,000 per year. Members of the Presentation Sisters have contributed services valued in excess of $796,000 to the operation of the hospital since its inception. At no time has the hospital received any funds under the Hill-'Burton Act (42 U.S.C. § 291 et seq.) or any other grants from city or county governments, the state of Montana, or the United States government for construction of physical facilities, purchase of equipment, or operation of the hospital.
Holy Eosary Hospital serves an area in southeastern Montana, including the counties of Garfield, Fallon, Carter, Prairie,. Eosebud and Custer. It is the only hospital in Miles City and has facilities for cesarean sections and postpartum care. Within the same area, there are also hospitals located at Jordan, Ekalaka, Baker, Forsyth, and Glendive. Of these hospitals, only those in Forsyth and Glendive have facilities for performing cesarean sections and postpartum care. Forsyth is 46 miles and Glendive is 76 miles distant from Miles City. Plaintiff James Ham is admitted to full staff privileges to practice in and use the hospital in Forsyth.
Tubal ligation is a medically accepted surgical procedure for female sterilization. It has not been performed at Holy Eosary Hospital because of the interpretation placed upon the publication “Ethical and Eeligious Directives for Catholic Hospitals” which is incorporated by reference in the bylaws of the medical staff of Holy Eosary Hospital. Holy Eosary Hospital had not adopted any guidelines for sterilization procedures except as provided by the Ethical and Eeligious Directives for Catholic Hospitals, nor has the defendant created a sterilization committee to review requests for sterilization.
By letter dated July 11, 1972, Mrs. Kransky requested permission from the hospital for the sterilization procedure at the-time of the cesarean section. This request was considered by the Board of Trustees. The administrator of the hospital replied by letter dated September 15, 1972, explaining that sterilization was prohibited by the Ethical and Eeligious Directives for Catholic Hospitals. Holy Eosary Hospital has expressed no other reasons for denying the tubal ligation. There are no formal appeal procedures from decisions of the Board of Trustees relating to applications for sterilization.
Plaintiff, James Ham, M.D., is a physician specializing in obstetrics and gynecology in Miles City. Outside of the Billings area, Dr. Ham is the only OB-Gyn specialist in the eastern Montana area. As a condition to admission to staff privileges, Dr. Ham has consented to, and agreed to be bound by, the medical staff bylaws of Holy Rosary Hospital. Holy Rosary Hospital requires its medical staff to abide by the medical staff bylaws, the principles of medical ethics of the American Medical Association, and the Ethical and Religious Directives for Catholic Hospitals insofar as they relate to a physician’s services within Holy Rosary Hospital.
Holy Rosary Hospital is subject to state regulation and control in accordance with Title 69, Chapters 52 and 53, Revised Codes of Montana, 1947, and is licensed annually by the state of Montana upon proper application by the hospital. In addition, the hospital is subject to the regulations for hospitals and related institutions promulgated by the Montana Department of Health and Environmental Sciences. The hospital has had the benefit of general exemptions from taxation as provided by sections 84-202 and 84-1501, R.C.M. 1947, for nonprofit corporations organized for charitable, scientific, religious or educational purposes. The hospital has also been paid with public funds for services rendered to eligible patients under state and federal welfare, medicare and medic-aid programs.
In their argument and brief, plaintiffs have raised a number of federal constitutional issues. However, as a condition precedent to the consideration of those issues, this Court must first find that the actions of the hospital involve state action prohibited by the federal constitution. We hold, as did the federal district court, that the actions of defendant Holy Rosary Hospital are merely private conduct, not state action, and are thus not proscribed by the Constitution. Finding no state action, we do not reach plaintiffs’ main issues. In addition, this action, as to the constitutional issues, is barred by the application of the doctrine of res judicata. Plaintiffs also claim that the hospital’s actions violate section 69-5217(1), R.C.M.1947. We hold there has been no violation of that statute.
In support of their allegation that state action is involved in Holy Eosary Hospital’s decision to forbid the use of its facilities for voluntary sterilization, plaintiffs present several facts which they claim lead to that conclusion: (1) the hospital’s use of “public” funds derived from its public appeals for contributions; (2) the hospital’s submission to regulations prescribed pursuant to the state’s participation in other Hill-Burton projects; (3) the hospital’s monopoly position in the Miles City area; (4) the hospital’s subjection to state licensing and regulation; (5) the operation of a hospital is per se a public function; and (6) the hospital’s preferred position under state law due to its tax exemption status. We find none of these facts, either individually or taken together, to be sufficient to warrant a finding that the actions of Holy Eosary Hospital, a private corporation, constitute state action subject to constitutional limitations. Since the parties and the issues were the same, we adopt and quote from the unreported opinion of Judge Eussell E. Smith, dated December 20, 1972, Civil No. 1103, United States District Court for the District of Montana, Billings Division:
“It is not disputed that the 14th amendment ‘erects no shield against merely private conduct however discriminatory or wrongful.’ Burton v. Wilmington Parking Authority, 365 U.S. 715, 81 S.Ct. 856, 6 L.Ed.2d 45 (1961); Moose Lodge No. 107 v. Irvis, 407 U.S. 163, 92 S.Ct. 1965, 32 L.Ed.2d 627 (1972). Holy Eosary Hospital is a private person and unless the state has ‘significantly involved’ itself with the claimed discrimination there is not state action and the court has no jurisdiction. Moose Lodge No. 107 v. Irvis, supra.
«# * #
“Under controlling decisions (Moose Lodge No. 107 v. Irvis, supra) the court is required to sift the facts and weigh the circumstances to determine whether in a given case there is a non-obvious involvement of the state in private conduct.
“As I independently weigh and sift the facts and circumstances here I am unable to conclude that there is any significant relationship between the state and the action here sought to be enjoined. It does not appear that the tax benefits or the state patronage enjoyed by Holy Rosary Hospital are dependent upon the enforcement of a sterilization policy. Were that so, a different problem would be presented, but the receipt of tax benefits alone is not sufficient to make the action of the beneficiary the action of the state. Browns v. Mitchell, 409 F.2d 593 (10th Cir. 1969); Blackburn v. Fisk University, 443 F.2d 121 (6th Cir. 1971). The State of Montana has not by statute or regulation attempted to prohibit or regulate operations resulting in the sterility of noncustodial males and females.
“It is urged that Holy Rosary Hospital has assumed a public function and may not in the exercise of such function restrict the fundamental rights of citizens. The cases in support of this proposition are analyzed in the case of Powe v. Miles, 407 F.2d 73 (2d Cir. 1968) and the rule stated in them was held to be inapplicable to private schools incorporated under state law, regulated by state law, and aided to some extent by state funds. What is said in Powe v. Miles, supra, with respect to private schools is equally applicable to private hospitals. In fact, state supported and managed education in America at all levels for many years has been a more common thing than state supported and managed hospitals.
“The fact that Holy Rosary Hospital has a practical, but not state-enforced, monopoly in obsterical services in Miles City does not make its action state action. Martin v. Pacific Northwest Bell Telephone Company, 441 F.2d 1116 (9th Cir. 1971).”
We will discuss briefly two of the factual bases, not discussed in Judge Smith’s opinion, which plaintiffs here urge require the conclusion that the hospital’s decision to forbid the use of its facilities for voluntary sterilization constitutes state action. Plaintiffs’ contention that the hospital’s nse of “public funds” derived from its public appeals for contributions constitutes state action is without merit. The fact that the appeal was to the public at large is immaterial to a finding that the power of the state is involved in the operation •of the hospital. At no time have funds derived from the state been used in a legal sense in the operation of Holy Rosary Hospital.
Plaintiffs’ contention that the hospital’s subjection to state licensing and regulation constitutes state action was answered in Moose Lodge No. 107 v. Irvis, 407 U.S. 163, 92 S.Ct. 1965, 32 L.Ed.2d 627, 639. There, the United States Supreme Court held that the mere licensing of Moose Lodge to serve liquor by the Pennsylvania Liquor Control Board did not amount to such state involvement with the club’s activities as to make its discriminatory practices forbidden by the Fourteenth Amendment. With respect to state regulation, the court said:
“However detailed this type of regulation may be in some particulars, it cannot be said to in any way foster or encourage racial discrimination. Nor can it be said to make the State in any realistic sense a partner or even a joint venturer in the club’s enterprise.”
In the instant case, the regulation of hospitals prescribed pursuant to Chapters 52 and 53, Title 69, R.C.M.1947, cannot be said to in any way foster or encourage a decision by the hospital on the subject of sterilization. At most, section 69-5223, R.C.M.1947, set forth later in this opinion, merely lets the decision rest with the hospital, free from any state coercion either way. Neither can it be said that these regulations in any realistic sense make the state of Montana a partner or joint venturer in the hospital’s decision to forbid voluntary, sterilizations within the walls of its facility.
We now consider the issue of whether the argument of plaintiffs, that the hospital is violating plaintiffs’ federal constitutional rights by refusing to permit sterilization opera tions, must be rejected because the order dismissing the federal court action is res judicata on that issue. In 28 U.S.C. §■ 1343, Congress granted the federal district courts jurisdiction, to enforce the Fourteenth Amendment. The jurisdiction conferred by that section is restricted to cases where the defendant has acted “under color of any State law, statute, ordinance,, regulation, custom or usage.” Whether there is “color of State-law” for purposes of § 1343 and whether there is a “significant, involvement of the state in private conduct”, i.e. “state action”,, for Fourteenth Amendment purposes are identical questions. See: Moose Lodge v. Irvis, supra; United States v. Wiseman,. 445 F.2d 792 (2d Cir. 1971); Hall v. Garson, 430 F.2d 430, 439 (5th Cir. 1970).
Attempting to invoke jurisdiction under 28 U.S.C. §- 1343 plaintiffs alleged in their federal court complaint that, the hospital, acting under color of state law, was infringing" upon rights secured to them by the United States Constitution. Based upon stipulated facts virtually identical to those in the-instant case, Judge Smith dismissed the case for lack of jurisdiction, holding, contrary to the allegations of the complaint,, that the hospital was not acting under color of state law.
Plaintiffs in their brief here return to the same issues involved in the federal court case and argue at length that the-hospital’s sterilization prohibition infringes upon rights secured. to them by the First, Fifth, Eighth, Ninth and Fourteenth Amendments to the United States Constitution. Since these-Amendments restrict only state action and not purely private • action, this argument again raises the issue of whether or not. the state is “significantly involved” in the hospital’s prohibition. against sterilization. Judge Smith ruled against plaintiffs on. this precise issue and his ruling is conclusive here.
The general rule respecting the conclusive effect of a dismissal for lack of jurisdiction on grounds material to the-merits of the cause is stated in the Annotation, 49 ALR2d 1036,, 1068 (1956):
“In some situations a decision on the jurisdiction of a court may depend upon questions of fact which are also material in determining the merits of the cause of action. The weight of the cases, expressly or by inference, supports the rule that where a question of fact material to the merits has been decided by and is essential to a judgment for defendant based on lack of jurisdiction, such determination is conclusive upon the parties in a subsequent action either for the same or a different cause of action.”
The applicability of this rule in the instant case cannot be questioned. Significant state involvement in the hospital’s sterilization rules is essential not only to the federal court’s jurisdiction but also to the merits of the claim that the hospital is denying plaintiffs their constitutional rights.
The parties here are the same as were before the federal court; the subject matter is the same as was before the federal court; the issue of state action is the same and relates to the same subject matter; and, the capacities of the parties are the same. Consequently, Judge Smith’s finding that there is no state participation in the hospital’s rules against sterilization is conclusive, and precluded a ruling here that such rules are subject to Fourteenth Amendment restrictions. Smith v. County of Musselshell, 155 Mont. 376, 378, 472 P.2d 878, 879.
Plaintiffs claim that the hospital’s sterilization rules violate section 69-5217, R.C.M.1947. That statute provides in pertinent part:
“(1) No person who operates a facility may discriminate among the patients of licensed physicians. The free and confidential professional relationship between licensed physician and patient shall continue and remain unaffected.. Physicians shall continue to have direction over their patients.”
The actions of Holy Rosary Hospital did not violate section 69-5217. There is no discrimination among patients. All patients are alike subject to the hospital’s rule prohibiting sterilizations to be performed within the hospital. As a private hos pital, which voluntarily initiated and voluntarily provides these hospital facilities, Holy Rosary Hospital has a legal right to prescribe the terms upon which it furnishes its services to the public so long as it does not discriminate against some patients in providing those services. The confidential relationship between physician and patient is unaffected. The relationship which these rules affect is that between the hospital and the physician or the hospital and the patient. The free and confidential relationship between patient and physician was never intruded upon by Holy Rosary Hospital. Plaintiffs were at all times free to choose another facility, albeit inconvenient, for the tubal ligation.
The last sentence of section 69-5217, R.C.M.1947, heretofore quoted, does appear to create some difficulty however. The sentence is ambiguous in that it may mean either (1) the physician has exclusive direction over his patient to the extent that he can totally disregard reasonable rules and regulations of a private hospital, or it may mean (2) that the physician has exclusive direction over his patient subject to reasonable rules and regulations of a private hospital. Although not enacted when this suit commenced, the legislature has subsequently enacted a statute which clarifies this ambiguity with respect to the issue at hand. Section 69-5223, which became effective March 21, 1974, provides in part:
“(1) No private hospital or health care facility shall be required contrary to the religious or moral tenets or the stated religious beliefs or moral convictions of such hospital or facility as stated by its governing body or board to admit any person for the purpose of sterilization or to permit the use of its facilities for such purpose. Such refusal shall not give rise to liability of such hospital or health care facility, or any personnel or agent or governing board thereof, to any person for damages allegedly arising from such refusal, nor be the basis for any discriminatory, disciplinary, or other recriminatory action against such hospital or health care facility, or any personnel, agent, or governing board thereof.”
Although the constitutionality of section 69-5223 was questioned by plaintiffs in oral argument, we need not decide that issue at the present time. We merely use section 69-5223 as persuasive authority, bearing on the legislative intent in enacting section 69-5217, for the purpose of resolving the ambiguity inherent in the last sentence of section 69-5217, R.C.M.1947. Viewing the two sections together, the resolution of the ambiguity is readily apparent. With respect to the issue of voluntary sterilization, the physician has exclusive direction over Ms patient subject to rules and regulations based upon religious or moral tenets.
It is clear the hospital’s rules respecting sterilization violate neither the United States Constitution nor the laws of the state of Montana. The finding of no “state action” by the federal district court is res judicata in this action. The district court therefore properly refused to issue a permanent injunction restraining Holy Rosary Hospital from enforcing its rules prohibiting sterilization within the hospital by granting summary judgment in favor of the hospital.
The judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES JOHN C. HARRISON, DALY and HASWELL concur.
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MR. JUSTICE SHEEHY
delivered the Opinion of the Court.
Henry J. Gillham seeks post-conviction relief from a judgment of conviction of attempted deliberate homicide entered following a jury trial in the District Court, Nineteenth Judicial District, Lincoln County, Honorable Robert M. Holter presiding. The District Court imposed a sentence of 60 years for the attempted deliberate homicide, plus an additional 10 years pursuant to Section 46-18-221, MCA, for the use of a destructive device. The court designated the petitioner a dangerous offender for the purposes of parole. The final judgment of conviction and sentence was entered on May 17, 1982.
Gillham appealed his conviction to this Court. He was represented by attorney Kerry Newcomer. On appeal, Gillham raised the following issues: improperly admitted evidence of “other crimes”; improper prosecutorial argument to the jury; juror misconduct; insufficient evidence to support the conviction; and cumulative error. This Court affirmed the petitioner’s conviction in its opinion dated Octo ber 6, 1983. State v. Gillham (Mont. 1983), [206 Mont. 169,] 670 P.2d 544, 40 St.Rep. 1576.
Gillham filed his petition for post-conviction relief in this Court on April 1, 1985 and raised four grounds for relief: (1) improper jury instructions; (2) illegal search and seizure; (3) ineffective assistance of counsel; and (4) denial of right to confrontation. The State denies the allegations offered in support of these grounds and opposes Gillham’s petition.
In the course of the proceedings before this Court, because Gillham alleged that he was denied effective assistance of counsel in his trial, the Attorney General requested of his counsel, Kerry Newcomer, information respecting the allegations made by Gillham in his petition. Newcomer declined to give such information. He filed an affidavit in which he stated that he was appointed to represent Gillham in December of 1981, approximately 1 month after Gillham had been arrested. Prior to that time Gillham had been represented by private counsel. Newcomer represented him as a part of his duties as a public defender in Lincoln County, Montana. Newcomer further stated in his affidavit that he was reluctant to assume or infer a waiver of the attorney-client privilege by reason of the allegations in Gillham’s petition for post-conviction relief. For that reason, and not as an obstacle to the proceedings before this Court, Newcomer wanted assurances that Gillham made a knowing and intelligent waiver of the attorney-client privilege.
On June 6,1985, we entered an order stating that Newcomer, as an officer of this Court, is obliged to assist the Court in the administration of justice and that therefore he should respond by affidavit or other sworn testimony to admit, deny, or qualify the allegations of fact made by Gillham in his petition. We provided that if making such response required him to reveal confidential information from Gillham, he should nonetheless make such response, revealing only so much confidential information as was necessary to properly respond to Gillham’s allegations. In that order, we stated that the effective administration of justice and the integrity of the fact finding system in criminal matters were more important than the privilege granted to the attorney-client relationship. We further stated that a petition such as Gillham’s which claims that his conviction is the result of inadequate assistance of counsel attacks the system of judicial administration and the fairness of our trial procedures and that to insure convicted persons of evenhanded justice in criminal adjudications, the Court and the State must have access to the truth of the allegations respecting the adequacy of counsel’s representation. We held, therefore, that Gillham’s actual consent to, or his comprehension of the waiver of the attorney-client privilege were irrelevant when a response was necessary from the attorney that had represented the defendant in the criminal case.
Newcomer did respond to the allegations of Gillham by filing his sworn affidavit and thereafter, the State filed its response to Gillham’s petition for post-conviction relief.
The cause is now ripe for consideration by us, and having examined the contentions of Gillham, and responses of the State thereto, we have determined that Gillham’s grounds which he claims entitle him to post-conviction relief are without substance. We therefore deny his petition.
1. FAILURE TO GIVE A MANDATORY JURY INSTRUCTION
Section 26-1-303, MCA, provides that the jury is to be instructed by the court on all proper occasions that, inter alia, “the testimony of a person legally accountable for the acts of the accused ought to be viewed with distrust.”
We will not burden this opinion with a full recitation of the facts constituting the crime for which Gillham was convicted. Such a recitation may be found in State v. Gillham (Mont. 1983), [206 Mont. 169,] 670 P.2d 544, 40 St.Rep. 1576. It is enough to say here that Linda Weitz and Mark Darby both testified that they met Gillham in September of 1981 when he showed them a blasting cap and wires and claimed to have dynamite in his truck for the purpose of “blowing up” Jean Nordahl on the instigation of Nordahl’s wife, Carolyn, for a commission of $5,000 to $10,000. Weitz and Darby testified that they went with Gillham late on November 12, 1981, to Nordahl’s shop. Darby stood guard outside while Gillham went inside for twenty minutes to install sticks of dynamite under the driver’s seat of a truck, the dynamite wired so that it would explode within a few seconds after the truck headlights were turned on. Weitz and Darby testified that the next day Gillham told them that “[t]he damned thing didn’t go off” and Gillham was worried about whether he had left fingerprints or other traces which could be related to him. Out of fear of Gillham, Weitz and Darby reported the incident to the sheriffs office.
At the time of settling instructions during Gillham’s trial, his counsel, Newcomer, had prepared an instruction embodying the mandatory statutory provision set forth above. He withdrew the mandatory accomplice instruction, however, during the discussion with the trial court. In his response to the Attorney General’s request for the purposes of this proceeding, Newcomer in his affidavits stated that he withdrew the offering instruction because it was not applicable: Gillham’s theory of defense was that Weitz and Darby had completely fabricated their story and Gillham never planted such a bomb.
Two legal issues arise on Gillham’s contentions respecting the withdrawal of the mandatory jury instruction: (1) Did the omission to instruct the jury that the testimony of an accomplice is to be viewed with distrust vitiate his conviction? (2) Did the withdrawal of the instruction by Newcomer constitute ineffective assistance of counsel?
To reverse a conviction upon the ground that the defense attorney’s performance was deficient, the defendant must show (1) counsel was not functioning so as to preserve the defendant’s Sixth Amendment rights and (2) the deficient performance prejudiced the defense. Strickland v. Washington (1984), _U.S. _, 104 S.Ct. 2052, 2064, 80 L.Ed.2d 674, 693. Defendant must establish a. reasonable probability that but for counsel’s unprofessional errors, the result of the trial would have been different. “A reasonable probability is a probability sufficient to undermine confidence in the outcome.” Strickland, _ U.S. _, 104 S.Ct. at 2068, 80 L.Ed.2d at 698. We have adopted the Strickland standards. State v. Boyer (1985), [215 Mont. 143,] 695 P.2d 829, 831, 42 St.Rep. 247, 250.
Although Newcomer states that Gillham’s denial of any complicity in the crime made it inconsistent for him to offer the accomplice instruction, it is clear from the language of the statute, and from the circumstances here, that the trial court should have instructed the jury that the testimony of the purported accomplices, Weitz and Darby, was to be viewed with distrust. Their testimony strengthened the State’s case, though not the only evidence of Gillham’s guilt. The trial court did, however, instruct the jury in its instruction No. 16:
“You may not find Henry Gillham guilty on the testimony of persons responsible or legally accountable for the same offense, unless their testimony is corroborated by other evidence which in itself and without the aid of the testimony of those responsible or legally accountable for the same offense tends to connect Henry Gillham with a commission of the offense. The corroboration is not sufficient if it merely shows the commission of the offense or the circumstances thereof.”
A reading of our opinion in State v. Gillham, [206 Mont. 169,] 670 P.2d 544, 40 St.Rep. 1576 will show there was much corroborative evidence to connect Gillham to the commission of this offense. In fact we stated, on the issue of the sufficiency of the evidence, that “the case against him is overwhelming.” Id. at 551, 40 St.Rep. at 1584. Our confidence in the outcome is not undermined by any reasonable probability that the failure of the Court to give the mandatory accomplice instruction would have brought about a different result in Gillham’s trial. Gillham’s contentions on the mandatory instruction are therefore insufficient to cause a reversal of his conviction.
We answer the legal issues raised by this contention by stating that the failure of the District Court to give the mandatory jury instruction was at most harmless error and does not serve to vitiate the conviction; and that the withdrawal of such an instruction by Gillham’s attorney does not meet the requirements to show ineffective assistance of counsel.
2. ILLEGAL SEARCH AND SEIZURE
Gillham’s claim of illegal search and seizure relates to a .22 caliber pistol that the evidence showed had been given to Gillham by Carolyn Nordahl to shoot Jean Nordahl on the evening of November 12, 1981. The shooting did not take place, and the gun was returned to Carolyn, who kept it with another pistol on a wall in the Nordahl home. Marvil Miller testified that after Gillham was arrested for the dynamite attempt, he had gone to the Nordahl home, and that Carolyn had given him the .22 pistol because she did not want it found after Gillham’s arrest. He turned it over to a deputy sheriff. The evidence later indicated that Miller had talked to the deputy before going to the Nordahl home, and apparently promised that he would get the gun for the deputy.
Gillham charges that the seizure was illegal, that the pistol should have been suppressed as evidence, and that his counsel was negligent in not moving to suppress the pistol at the time of the trial, nor making it a subject for appeal.
When the matter first came up during the trial, Newcomer was un aware that the deputy sheriff had first talked to Miller about the gun.
There is no need to cite authority because clearly there was not an illegal search or seizure here. The pistol did not belong to Gillham; the pistol was not taken from his home; he had no right to the possession of the pistol. A motion to suppress would have been futile.
With respect to the appeal, Newcomer states in his affidavit responding to Gillham that he and Gillham agreed that the issue would not be raised in appeal because it was Newcomer’s legal advice to Gillham that it was not wise to “shotgun” issues before the Supreme Court, but to pick out the issues in which they had the strongest chance of reversal. It need only be said further that the presence or lack of presence of a gun in the testimony would not make a difference in the outcome on appeal for his conviction would have still been affirmed.
3. IMPEACHMENT OF WEITZ AND DARBY
Gillham contends that Newcomer as his counsel should have attacked more vigorously the testimony of Weitz and Darby, and impeached them. Newcomer refutes Gillham’s contention on this point by citing us to the pages of the transcript where he cross-examined both Weitz and Darby. Newcomer contends that because defendant denied absolutely any involvement in the dynamite attempt counsel had no other testimony which could be produced contrary to that of Darby and Weitz. His only recourse was to point out inconsistencies between their testimonies on prior statements, with the object of impeaching them by showing bias or prejudice.
Under the circumstances, we find that Newcomer did what was possible under the circumstances where his client denied complicity in the crime, and there were no other witnesses to refute the testimony given by those testifying. There is no basis for Gillham’s claim of ineffective assistance of counsel.
4. RIGHT OF CONFRONTATION
Gillham wore a hearing aid during the trial, because of his hearing disability. He contends in his petition that Newcomer and an assistant James Park Taylor instructed Gillham to disable or turn off his hearing aid. As a result Gillham claims he was unable to hear the proceedings of trial and that in place of being able to hear the proceedings they had arranged for Gillham to answer “yes” or “no” with hand signals.
Newcomer’s affidavit states that prior to trial he spoke to Gillham at length about his ability to hear, Gillham informed Newcomer that the hearing aid was sufficient but that it needed new batteries. The assistant obtained batteries for Gillham and they were installed in his hearing aid. During the trial the hearing aid was turned up to such an extent that it squealed from feedback. Several times counsel requested Gillham to turn down his hearing aid during the trial. During the trial he told counsel that he could hear sufficiently well and understood the proceedings. Newcomer also believed that the petitioner heard the proceedings because from time to time in response to testimony against him he would become excited and would comment that such a testimony was a lie or was incorrect in some respect. Newcomer also asked petitioner to use a note pad and pen to write out his questions so that he would be less disruptive during the trial. Newcomer further states that the allegation for using tapping on the table or other hand signals is completely false.
We reject Gillham’s contention that he was denied right to confront his witnesses because of his hearing deficiency.
The foregoing are the principal issues raised by Gillham in connection with his petition for post-conviction relief. Gillham also alleges that Newcomer did not give Gillham an opportunity to decide in an intelligent manner whether or not he should testify in his own behalf. In responding to this allegation Newcomer points out that there was absolute inconsistency between Gillham’s version of what had occurred and what was testified to by other witnesses. Gillham had a previous criminal record, and during the time of the bombing attempt, he was engaged in illegal activities relating to alcohol, tobacco, and firearms. Moreover, even to Newcomer, Gillham was giving differing versions of the events surrounding the bombing attempt. It was counsel’s opinion that if Gillham testified, he would seriously damage his defense.
We have stated above the duty of counsel and the standard to which one is held in counseling defendants in criminal cases. We see no breach of duty on the part of Newcomer.
ACCORDINGLY, IT IS ORDERED:
1. The petition of Henry J. Gillham for post-conviction relief is hereby denied.
2. The Clerk of this Court shall send copies of this opinion and order by ordinary mail to the defendant, to Kerry N. Newcomer, to the Attorney General, and to the Clerk of the District Court of Lincoln, Montana.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES WEBER. GULBRANDSON and MORRISON concur.
|
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
On August 14, 1960, following an ex parte hearing upon a petition theretofore filed, this court issued an alternative writ returnable at the hour of 2:00 P. M. on August 20, 1962. Rule IY, § 8, of the Rules of this Court, provides as follows:
“Hearing. When Had. Unless otherwise ordered the hearing shall be had at the time fixed for the return. At or prior to the said return time the opposing party shall serve and file, without waiver, any and all pleadings, motions and demurrers desired to be presented, including answer or return, and all issues shall be argued at the hearing, the applicant opening and closing, and the parties being allowed the same time as upon argument of appeals. If testimony becomes necessary a reference will be ordered.”
Rule IV, § 7, provides:
“Briefs. At or before the time set for final hearing, each party shall serve and file his brief in full conformance with Rules II, III and X, and containing a statement of the facts and of the points of law applicable, with the authorities relied upon.”
At the time set for hearing respondents had filed no brief as provided by Section 7, supra, nor any pleading, motion or demurrer, nor any answer or return as provided by Section 8, supra.
Counsel appeared to represent respondent and explained that he did so in accordance with the custom prevailing in the district court that counsel appearing in the cause in that court appear for and on behalf of the court upon any original proceeding filed here by virtue of such district court procedure.
Service of the alternative writ and accompanying papers was effected upon respondent court on the 14th day of August, 1962, at 5 :30 P. M. Counsel represents here that although he was advised of the writ and read it and accompanying papers in the office of the clerk he was unable to get in contact with respondent, who apparently is on vacation, nor have any papers been delivered to him by respondent. While counsel orally argued and agreed to furnish a memorandum brief in twenty-four hours, we are here faced with no answer or return in response to the alternative writ.
Such writ commanded respondent to show cause before this court and none has been shown.
In such circumstances we must accept the allegations contained in the petition as true. State ex rel. Flowerree v. District Court, 71 Mont. 89, 227 P. 579.
The petition alleges that at the time of the issuance of the temporary restraining order in Cause 51816, entitled Butte, Anaconda & Pacific Railway Company, a corporation, Plain tiff, v. Brotherhood of Locomotive Firemen and Enginemen, a voluntary labor association; J. H. McCarvel, individually and as General Chairman of the Brotherhood of Railroad Trainmen, a voluntary labor association; R. R. McLean, individually and as General Chairman of the Brotherhood of Railroad Trainmen; Butte Teamsters Union Local No. 2, and Edwin Kangas, individually and as President of Butte Teamsters Union Local No. 2, Defendants, pending in the District Court of Silver Bow County, counsel for Butte Teamsters Union Local No. 2, and Ed Kangas made formal objection to such issuance on the ground of lack of jurisdiction of the subject matter of the ease, in that it was one over which federal law vested exclusive jurisdiction in the National Labor Relations Board.
The two sections of the Taft-Hartley Act which petitioner contends are applicable here are Sections 7 and 8(b).
Section 7 provides:
“Bight of employees as to organisation, collective bargaining, etc. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 158(a) (3) of this title.” July 5, 1935, c. 372, § 7, 49 Stat. 452; June 23, 1947, 3:17 P.M., E.D.T., c. 120, Title I, § 101, 61 Stat. 140. 29 U.S.C.A. § 157.
Section 8(b), 29 U.S.C.A. § 158, provides:
“(b) It shall be an unfair labor practice for a labor organization or its agents— * * *
“(4) (i) to engage in, or to induce or encourage any individual employed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a refusal in the course of his employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or (ii) to threaten, coerce, or restrain any person engaged in commerce or in an industry affecting commerce, where in either ease an object thereof is — * * *
“(B) forcing or requiring any person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person * * *: Provided, That nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing;” July 5, 1935, c. 372, § 8, 49 Stat; 452; June 23, 1947, 3:17 p.m., E.D.T., c. 120, Title I, § 101, 61 Stat. 140; Oct. 22, 1951, c. 534, § 1(b), 65 Stat. 601. As amended Sept. 14, 1959, Publ.L. 86-257, Title II, § 201(e), Title VII, §§ 704(a)-(c), 705(a), 73 Stat. 525, 542, 545.
Under these provisions numerous United States Supreme Court decisions hold that a state court has no jurisdiction unless it be an instance of injurious conduct which the National Labor Relations Board is without express power to prevent; mass picketing, threatening of employees, obstructing streets and highways, picketing homes, or local matters such as public safety and the preservation of peace and order.
We shall refer to various decisions which point up the jurisdiction of state courts under the Taft-Hartley Act.
In Garner v. Teamsters Union, 346 U.S. 485, 74 S.Ct. 161, 98 L.Ed. 228, the court said:
“A decision of the Supreme Court of Pennsylvania has deprived petitioners of an injunction which a lower equity court of the State had granted to prohibit certain picketing by respondent labor union. The court below reviewed the national Labor Management Relations Act * * * and our applicable decisions, and concluded: ‘In our opinion such provisions for a comprehensive remedy precluded any State action by way of a different or additional remedy for the correction of the identical grievance.’ The correctness of this ruling is the sole issue here. We granted certiorari.
“Petitioners were engaged in the trucking business and had twenty-four employees, four of whom were members of respondent union. The trucking operations formed a link to an interstate railroad. No controversy; labor dispute or strike was in progress, and at no time had petitioners objected to their employees joining the union. Respondents, however, placed rotating pickets, two at a time, at petitioners’ loading platform. None were employees of petitioners. They carried signs reading ‘Local 776 Teamsters Union (A. F. of L.) wants Employees of Central Storage & Transfer Co. to join them to gain union wages, hours and working conditions.’ Picketing was orderly and peaceful, but drivers for other carriers refused to cross this picket line and, as most of petitioners’ interchange of freight was with unionized concerns, their business fell off as much as 95%. The courts below found that respondents’ purpose in picketing was to coerce petitioners into compelling or influencing their employees to join the union.
“The equity court held that respondents’ conduct violated the Pennsylvania Labor Relations Act. The Supreme Court of the Commonwealth held, quite correctly, we think, that petitioners’ grievance fell within the jurisdiction of the National Labor Relations Board to prevent unfair labor practices. It therefore inferred that state remedies were precluded. # -:c
“The National Labor Management Relations Act, as we have before pointed out, leaves much to the states, though Congress has refrained from telling us how much. We must spell out from conflicting indications of congressional will the area in which state action is still permissible.
“This is not an instance of injurious conduct which the Na tional Labor Relations Board is without express power to prevent and which therefore either is ‘governable by the state or it is entirely ungoverned.’ In such cases we have declined to find an implied exclusion of state powers. International Union U. A. W., A. F. of L., Local 232 v. Wisconsin Employment Relations Board, 336 U.S. 245, 254, 69 S.Ct. 516, 521, 93 L.Ed. 651. Nor is this a case of mass picketing, threatening of employees, obstructing streets and highways, or picketing homes. We have held that the state still may exercise ‘its historic powers over such traditionally local matters as public safety and order and the use of streets and highways.’ Allen-Bradley Local No. 1111 United Electrical Radio and Machine Workers of America v. Wisconsin Employment Relations Board, 315 U.S. 740, 749, 62 S.Ct. 820, 825, 86 L.Ed. 1154. Nothing suggests that the activity enjoined threatened a probable breach of the state’s peace or would call for extraordinary police measures by state or city authority. Nor is there any suggestion that respondents’ plea of federal jurisdiction and preemption was frivolous and dilatory, or that the federal Board would decline to exercise its powers once its jurisdiction was invoked.
“Congress has taken in hand this particular type of controversy where it affects interstate commerce. In language almost identical to parts of the Pennsylvania statute, it has forbidden labor unions to exert certain types of coercion on employees through the medium of the employer. It is not necessary or appropriate for us to surmise how the National Labor Relations Board might have decided this controversy had petitioners presented it to that body. The power and duty of primary decision lies with the Board, not with us. But it is clear that the Board was vested with power to entertain petitioners’ grievance, to issue its own complaint against respondents and, pending final hearing, to seek from the United States District Court an injunction to prevent irreparable injury to petitioners while their ease was being considered. The question then is whether the State, through its courts, may adjudge the same controversy and extend its own form of relief. * * *
“On the basis of the allegations, the petitioners could have presented this grievance to the National Labor Relations Board. The respondents were subject to being summoned before that body to justify their conduct. We think the grievance was not subject to litigation in the tribunals of the State.”
This same principle was again expressed by the United States Supreme Court in Youngdahl v. Rainfair, Inc., 355 U.S. 131, 78 S.Ct. 206, 2 L.Ed.2d 151, wherein the court said:
“The issues here are whether, under the circumstances of this case, a state court may enjoin strikers and union representatives from (1) ‘threatening, intimidating or coercing any of the officers, agents or employees of [the employer] at any place,’ and also ‘from obstructing, or attempting to obstruct the free use of the streets adjacent to [the employer’s] place of business, and the free ingress and egress to and from [the employer’s] property,’ and (2) all ‘picketing or patrolling’ of the employer’s premises. For reasons hereafter stated, we conclude that the state court may lawfully enjoin conduct of substantially the first category but not of the second.
“Most of the material facts are uncontroverted. In 1955, respondent, Rainfair, Inc., was a Wisconsin corporation with headquarters in Racine, Wisconsin. It owned and operated a plant in Wynne, Arkansas, an essentially rural community of about 4,000 inhabitants. About 100 women and seven men were there employed in the manufacture of men’s slacks which were shipped in interstate commerce. None of the employees were members of a labor union but many had signed applications to join the Amalgamated Clothing Workers of America, CIO, which is one of the petitioners.
“Apparently in an effort to compel the employer to recognize the union as the bargaining agent of the employees, 29 of the employees did not report for work on May 2, 1955. A picket line was established on the street in front of the plant. Strike headquarters were maintained across the street from the plant entrance. Nearly all of the strikers were women. Their number varied from 8 to 37. All was not quiet, however. On one occasion nails were strewn over the company’s parking lot and, about a week later, the whole lot was ‘seeded’ with roofing tacks. Tacks were also scattered in the driveway of the plant manager’s home and on the driveways of 12 of the nonstriking women employees. One of the pickets told the plant manager that she would ‘wipe the sidewalk’ with him and send him back to Wisconsin because he ‘was nothing but trash.’ The plant manager was followed by the strikers each time he left the plant; he also was harassed at night by occasional shouting at his home and by numerous anonymous telephone calls. * * *
“The applicable principles of law are substantially agreed upon. Respondent concedes that it is engaged in interstate commerce and that its employees are entitled to the protection of the National Labor Relations Act, as amended, 61 Stat. 136, 29 U.S.C. § 151, 29 U.S.C.A. § 151. Respondent does not contend that the state court had power to enjoin peaceful organized activity, recognizing that generally the National Labor Relations Board has exclusive jurisdiction of such matters. Weber v. Anheuser-Busch, Inc., 348 U.S. 468, 75 S.Ct. 480, 99 L.Ed. 546. Petitioners concede that the state court had the power to enjoin violence. United Automobile, Aircraft and Agricultural Implement Workers of America v. Wisconsin Employment Relations Board, 351 U.S. 266, 76 S.Ct. 794, 100 L.Ed. 1162; Allen-Bradley Local No. 1111, United Electrical Radio and Machine Workers of America v. Wisconsin Employment Relations Board, 315 U.S. 740, 62 S.Ct. 820, 86 L.Ed. 1154. Respondent contends that the record here shows a pattern of violence so enmeshed in the picketing that, to restore order, it was necessary to enjoin all organized conduct. Petitioners, on the other hand, urge that there was no violence here and no threat of it and, accordingly, that there was no factual warrant for the injunction which issued.
“The issue here is whether or not the conduct and language of the strikers were likely to cause physical violence. Petitioners urge that all of this abusive language was protected and that they could not, therefore, be enjoined from using it. We cannot agree. Words can readily be so coupled with conduct as to provoke violence. See Chaplinsky v. State of New Hampshire, 315 U.S. 568, 571-572, 62 S.Ct. 766, 768-769, 86 L.Ed. 1031. Petitioners contend that the words used, principally ‘scab’ and variations thereon, are within a protected terminology. But if a sufficient number yell any word sufficiently loudly showing an intent to ridicule, insult or annoy, no matter how innocuous the dictionary definition of that word, the effect may cease to be persuasion and become intimidation and incitement to violence. Wynne is not an industrial metropolis. When, in a small community, more than 30 people get together and act as they did here, and heap abuse on their neighbors and former friends, a court is justified in finding that violence is imminent. Recognizing that the trial court was in a better position than we can be to assess the local situation, we think the evidence supports its conclusion, affirmed by the State Supreme Court, that the conduct and massed name-calling by petitioners were calculated to provoke violence and were likely to do so unless promptly restrained.
“Though the state court was within its discretionary power in enjoining future acts of violence, intimidation and threats of violence by the strikers and the union, yet it is equally clear that such court entered the pre-empted domain of the National Labor Relations Board insofar as it enjoined peaceful picketing by petitioners. The picketing proper, as contrasted with the activities around the headquarters, was peaceful. There was little, if any, conduct designed to exclude those who desired to return to work. Nor can we say that a pattern of violence was established which would inevitably reappear in the event picketing were later resumed. Cf. Milk Wagon Drivers Union of Chicago, Local 753 v. Meadowmoor Dairies, Inc., 312 U.S. 287, 61 S.Ct. 552, 85 L.Ed. 836. What violence there was was scattered in time and much of it was unconnected with the picketing. There is nothing in the record to indicate that an injunction against such conduct would be ineffective if picketing were resumed.
“Accordingly, insofar as the injunction before us prohibits petitioners and others cooperating with them from threatening violence against, or provoking violence on the part of, any of the officers, agents or employees of respondent and prohibits them from obstructing or attempting to obstruct the free use of the streets adjacent to respondent’s place of business, and the free ingress and egress to and from that property, it is affirmed. On the other hand, to the extent the injunction prohibits all other picketing and patrolling of respondent’s premises and in particular prohibits peaceful picketing, it is set aside. The judgment of the Supreme Court of Arkansas is vacated and the case is remanded to it for further proceedings not inconsistent with this opinion.”
Again recognizing the doctrine of jurisdiction of state courts in the maintenance of the peace, the Supreme Court of the United States in San Diego Building Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775, said:
“When it is clear or may fairly be assumed that the activities which a State purports to regulate are protected by § 7 of the National Labor Relations Act, or constitute an unfair labor practice under § 8, due regard for the federal enactment requires that state jurisdiction must yield. To leave the States free to regulate conduct so plainly within the central aim of federal regulation involves too great a danger of conflict between power asserted by Congress and requirements imposed by state law. Nor has it mattered whether the States have acted through laws of broad general application rather than laws specifically directed towards the governance of industrial relations. Regardless of the mode adopted, to allow the States to control conduct which is the subject of national regulation would create potential frustration of national purposes.
"At times it has not been clear whether the particular activity regulated by the States was governed by § 7 or § 8 or was, perhaps, outside both these sections. But courts are not primary tribunals to adjudicate such issues. It is essential to the administration of the Act that these determinations be left in the first instance to the National Labor Relations Board. What is outside the scope of this Court’s authority cannot remain within a State’s power and state jurisdiction too must yield to the exclusive primary competence of the Board. See, e. g., Garner v. Teamsters, etc. Union, 346 U.S. 485, 74 S.Ct. 161, at pages 165-166, 98 L.Ed. 228; Weber v. Anheuser-Busch, Inc., 348 U.S. 468, 75 S.Ct. 480, 99 L.Ed. 546. * * *
"In the light of these principles the case before us is clear. Since the National Labor Relations Board has not adjudicated the status of the conduct for which the State of California seeks to give a remedy in damages, and since such activity is arguably within the compass of § 7 or § 8 of the Act, the State’s jurisdiction is displaced. * * *
"It is true that we have allowed the States to grant compensation for the consequences, as defined by the traditional law of torts, of conduct marked by violence and imminent threats to the public order. International Union, United Automobile, Aircraft and Agricultural Implement Workers, etc. v. Russell, 356 U.S. 634, 78 S.Ct. 932, 2 L. Ed 2d 1030; United Construction Workers, etc. v. Laburnum Const. Corp., 347 U.S. 656, 74 S.Ct. 833, 98 L.Ed. 1025. We .have also allowed the States to enjoin such conduct. Youngdahl v. Rainfair, Inc., 355 U.S. 131, 78 S.Ct. 206, 2 L.Ed.2d 151; United Automobile, Aircraft and Agricultural Implement Workers etc. v. Wisconsin Employment Relations Board, 351 U.S. 266, 76 S.Ct. 794, 100 L.Ed. 1162. State jurisdiction has prevailed in these situations because the compelling state interest, in the scheme of onr federalism, in the maintenance of domestic peace is not overridden in the absence of clearly expressed congressional direction. We recognize that the opinion in United Construction Workers etc. v. Laburnum Const. Corp., 347 U.S. 656, 74 S.Ct. 833, 835, 98 L.Ed. 1025, found support in the fact that the state remedy had no federal counterpart. But that decision was determined, as is demonstrated by the question to which review was restricted, by the ‘type of conduct’ involved, i. e., ‘intimidation and threats of violence.’ In the present case there is no such compelling state interest.”
In 1961, the Supreme Court of the United States again expressed itself upon the lack of jurisdiction of a state court over litigation arising from activities which might arguably be subject to or within the jurisdiction of the National Labor Relations Board.
In Marine Engineers Beneficial Assn. v. Interlake Steamship Co., 370 U.S. 173, 82 S.Ct. 1237, 8 ;L.Ed.2d 418, No. 166, October Term, 1961, that Court said:
“In San Diego Building Trades Council, etc. v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775, this Court held that the proper administration of the federal labor law requires state courts to relinquish jurisdiction not only over those controversies actually found to be within the jurisdiction of the National Labor Relations Board, but also over litigation arising from activities which might arguably be subject to that agency’s cognizance. Only such a rule, the Court held, will preserve for the Labor Board its congressionally delegated function of deciding what is and what is not within its domain. In the present case the Supreme Court of Minnesota held that the petitioners, Marine Engineers Beneficial Association (ME-BA) and its Local 101, were not ‘labor organizations’ within the meaning of § 8(b) of the Labor Management Relations Act, 29 U.S.C. § 158(b), 29 U.S.C.A. § 158(b), and therefore not subject to the unfair labor practice provisions of that section of the statute. Accordingly, the court held that a state trial court had not erred in assuming jurisdiction over a labor dispute involving MEBA and Local 101, and in permanently enjoining them from picketing found to be in violation of state law. 260 Minn. 1, 108 N.W.2d 627. We granted certiorari, 368 U.S. 811, 82 S.Ct. 44, 7 L.Ed.2d 20, to consider an asserted conflict between the Minnesota court’s decision and our holding in the Garmon case. * * *
“The Garmon ease dealt with rules of conduct — whether certain activities were protected by § 7 or prohibited by § 8 of the Act. In the present case it has hardly been disputed, nor could it be, that the petitioners’ conduct was of a kind arguably prohibited by § 8(b) (4) (A) of the Act and thus within the primary jurisdiction of the Board, if MEBA and Local 101 were ‘labor organizations’ within the contemplation of § 8(b) generally. The Minnesota courts determined, however, that those whom the petitioners represented and sought to enlist were ‘supervisors,’ that consequently neither of the petitioners was a ‘labor organization,’ and therefore that nothing in the Garmon doctrine precluded a state court from assuming jurisdiction.
It is the petitioners’ contention that the issue to be determined in this ease is not whether the state courts correctly decided their ‘labor organization’ status, but whether the state courts were free to finally decide that issue at all. The petitioners contend that the principles of the Garmon decision confined the state court to deciding only whether the evidence in this case was sufficient to show that either of them was arguably a ‘labor organization’ within the contemplation of § 8(b). We agree, and hold that the evidence was sufficient to deprive the Minnesota courts of jurisdiction over this controversy. * * *
“The need for protecting the exclusivity of NLRB jurisdiction is obviously greatest when the precise issue brought before a court is in the process of litigation through procedures originating in the Board. While the Board’s decision is not the last word, it must assuredly be tbe first. In addition, when tbe Board has actually undertaken to decide an issue, relitigation in a state court creates more than theoretical danger of actual conflict between state and federal regulation of the same controversy. ‘Our concern’ here, as it was in the Garmon case, 359 U.S., at 246, 79 S.Ct., at 780, ‘is with delimiting areas * * * which must be free from state regulation if national policy is to be left unhampered.’ ”
Again in In re Green, 369 U.S. 689, 82 S.Ct. 1114, 8 L.Ed.2d 98, the Supreme Court of the United States dealing with the jurisdiction of state courts had this to say:
“Petitioner, a member of the Ohio bar, has been held in contempt of a state court and sentenced to jail and fined. He brought this habeas corpus proceeding in the state courts challenging, inter alia, their jurisdiction to punish him for the conduct in question. He was denied relief by the Supreme Court of Ohio on a divided vote, 172 Ohio St. 269, 175 N.E.2d 59. We granted the petition for certiorari, 368 U.S. 894, 82 S.Ct. 171, 7 L.Ed.2d 92.
“The matter in dispute arose out of a management-labor controversy. The employer sought and obtained from the state court an injunction against picketing. Petitioner had been retained by the International Longshoreman’s Association to represent the local involved in this labor dispute and when advised by the clerk of the court that a petition for an injunction had been requested, he said he would be ready anytime for a hearing. The injunction, however, was issued ex parte. Petitioner immediately asked for a hearing; but none was granted. At the time the ex parte injunction issued, the union had on file with the National Labor Relations Board an unfair labor practice charge, but no hearing had been held on it.
“Petitioner, believing that under Ohio Rev.Code, 1954, § 2727.06 the restraining order was invalid because it was issued without a hearing and that the controversy was properly one for the National Labor Relations Board and not for the state court, advised the union officials that the restraining order was invalid and that the best way to contest it was to continue picketing and, if the pickets were held in contempt, to appeal or to test any order of commitment by habeas corpus. The union officials agreed on that course of action and the picketing continued. * * *
“* * * The question was whether the state court was trenching on the federal domain. The issue thus tendered emphasizes one important function that a hearing performs. It is impossible to determine from this record whether or not the dispute was exclusively within the jurisdiction of the National Babor Relations Board under the principles of San Diego Building Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775, and Amalgamated Association of St. Elec. Ry. & Motor Coach etc. v. Wisconsin Employment Relations Board, 340 U.S. 383, 71 S.Ct. 359, 95 L.Ed. 364. The Ohio court could not know whether it was within bounds in citing a person for contempt for violating the injunction without such a hearing. For, as Amalgamated Association of St. Elec. Ry. & Motor Coach etc. v. Wisconsin Employment Relations Board, supra, held, a state court is without power to hold one in contempt for violating an injunction that the state court had no power to enter by reason of federal pre-emption. Even if we assume that an ex parte order could properly issue as a matter of state law, it violates the due process requirements of the Fourteenth Amendment to convict a person of a contempt of this nature without a hearing and an opportunity to establish that the state court was acting in a field reserved exclusively by Congress for the federal agency. When an activity is ‘arguably’ subject to the National Board the States must defer to its ‘exclusive competence,’ ‘if the danger of state interference with national policy is to be averted.’ San Diego Building Trades Council v. Garmon, supra, 359 U.S. at 245, 79 S.Ct. at 780.”
It is thus apparent from these decisions that the jurisdiction of state courts in the field of labor relations under the Taft-Hartley law is very limited in scope, and in general must in some manner be concerned with the maintenance of the peace or protection of property.
The allegations in the complaint in Cause 51816, so far as pertinent here, were that “the defendant Teamsters Union established picket lines on the right of way of the plaintiff, Butte, Anaconda & Pacific Railway Company, where said right of way passes through the Anselmo Yard of The Anaconda Company on Excelsior Street and at the entrance to the Butte Yard of the plaintiff, Butte, Anaconda & Pacific Railway Company, on North Wyoming Street, all in Butte, Silver Bow County, Montana; that the pickets have placards or banners containing the following legend, to-wit:
“ ‘B. A. & P. RAILROAD UNFAIR TO TEAMSTERS UNION LOCAL #2’ ”; that the said pickets established themselves on the plaintiff’s right of way in such fashion as to require plaintiff’s train to pass by them where such banners were displayed to members of plaintiff’s train crews; that as a result of said picketing on plaintiff’s property and right of way and the legends displayed on said banners, plaintiff’s employees have refused and do refuse to operate plaintiff’s trains to transport cars and property to or from the mines, plants or properties of The Anaconda Company so long as said pickets remain on the plaintiff’s property and display their banners as aforesaid; * * * that the legend displayed on said banners as aforesaid is false and untruthful; that the inteñt and purpose of the said Teamsters Union in picketing the properties and right of way of plaintiff are to induce and coerce plaintiff not to serve The Anaconda Company, a shipper, as required by law; * * *”
Summarized, it charges picket lines on the right of way, pickets carrying placards, established on the right of way in such fashion that trains pass by and the placards are displayed to such train crews, that the legend on the placards is not true, that the purpose of picketing is to induce and coerce plain tiff not to serve a shipper, and that its employees refuse to pass the picket line.
Clearly, there are no allegations that concern breaches of the peace, injurious conduct, mass picketing, threatening of employees, obstruction of the right of way, violence of any kind, or threat thereof.
That the plaintiff Railroad recognized this lack of jurisdictional allegations is established by its dismissal of Cause 51816 as to the relators here and subsequent filing of Cause 51836, in which an additional allegation is contained in their complaint as to the actions of the pickets in these words:
“* * * that said pickets have established themselves on plaintiff’s properties and rights of way in such fashion as to interfere with the safe operation of plaintiff’s trains and to prevent ingress and egress at the plants and properties of The Anaconda Company and to hinder, obstruct and interfere with the passage of plaintiff’s trains along its tracks; that, further, said pickets have harassed and intimidated plaintiff’s employees while picketing on plaintiff’s properties and rights of way by threats of harm and violence and by rude, threatening and intimidating gestures and insults; * * *
In our opinion the district court was acting in excess of jurisdiction when it issued the restraining order against relators in cause No. 51816.
Relators, in their supplemental application herein, allege that at the time set for hearing the order to show cause in the district court, the plaintiff Railroad dismissed the action as to relators but not as to the other defendants, such dismissal being without prejudice. Relators objected to such dismissal contending that the effect of the restraining order against the other defendants is such as to deny to relators rights assured to them under the terms of the National Labor Relations Act. The plaintiff Railroad objected to the appearance of counsel for relators on the ground they were no longer parties since the action had been dismissed as to them and no motion to inter vene having been filed or granted. Motion was further made by plaintiff Railroad to strike relators’ objection from the record since they were no longer parties. The court ruled it had authority to dismiss the action as to relators, leaving them free of any court order. The court offered the Teamsters Union time to intervene in the cause, which offer was refused. The other defendants were present by counsel during these proceedings and requested a continuance of their hearing on the order to show cause and such request was granted.
After such dismissal and on the same day another action was commenced by the Railroad against these relators as previously referred to.
Relators contend that since the court was without jurisdiction it could not order the action dismissed as to part only of the defendants, but could only order it dismissed in its entirety.
It must be remembered that other and different counsel represent the other defendants and that such counsel was present at the time set for the hearing, as before related. Being fully aware of the events which transpired such counsel requested a continuance of the hearing which the court granted. If the suit is a class action under Rule 23(c) requiring approval of the court for dismissal such approval was surely had and since the other defendants were present they had notice.
Rule 41(a) (1), providing for voluntary dismissals, granted plaintiff Railroad the right to dismiss without prejudice.
Subsection (2) of the same rule permits the court to dismiss upon such terms and conditions as it deems proper.
We are much impressed with the reasoning of the court expressed in Broadway & Ninety-Sixth St. Rlty. Corp. v. Loew’s Inc., 23 F.R.D. 9, wherein the United States District Court, (S.D. New York), said:
“Certain defendants, having settled with plaintiffs and with added defendants against whom they have served a cross-claim, move for a dismissal of the plaintiffs’ complaint as against them, a dismissal of their counterclaim against the plaintiffs and a dismissal of their cross-claim against the added defendants. There is objection on the part of remaining defendants on the ground that it is an advantage to them to have the moving defendants in the case. They say, for instance, that if the moving defendants remain as parties the objecting defendants’ rights of examination and discovery will be broader and the assertion of any right of contribution that they may have against the moving defendants will be facilitated.
‘ ‘ There is a conflict in the cases as to the authority for dropping a party as distinguished from dismissing the entire action. The Third Circuit proceeded under Rule 41 (a) (2) F.R.Civ.P. in Young v. Wilky Carrier Corporation, 150 F.2d 764. This Circuit in Harvey Aluminum, Inc. v. American Cyanamid Co., 203 F.2d 105, 108, expressed the view that Rule 41 applied only to dismissal of the entire action and that the elimination of a single party should be accomplished under Rule 21. A later ease in this Circuit, Kerr v. Compagnie De Uutramar, 250 F.2d 860, 864, indicates that Rule 21 is applicable only where there has been a technical misjoinder and that a motion to drop a party is more properly an amendment of the pleadings under Rule 15(a), which would result in a dismissal of the complaint, or (in that case) that the motion might be based solely on the inherent powers of the court to perfect federal jurisdiction.
“I refuse to believe that the court lacks power to dismiss a case as to less than all the defendants. If the power is inherent it must be exercised fairly. If it is granted by one of the above enumerated rules it is to be exercised ‘when justice so requires’ Rule 15(a), ‘on such terms as are just’ Rule 21, or ‘upon such terms and conditions as the court deems proper’ Rule 41(a) (2). Since the considerations applicable in all four eases are thus substantially identical it is unnecessary to decide whether I am acting under Rule 15(a), Rule 21, Rule 41(a) (2) or under none of them.
“No objecting defendant has served any cross-claim against a moving defendant.
“Doubtless the position of the objecting defendants would be more favorable with the moving defendants as co-parties with them but' I can think of no reason in law or justice why the moving defendants having bought their peace from plaintiffs should be required to continue as co-parties with the objecting defendants and for their sole benefit.
“The joinder of the moving defendants by plaintiffs gave their fellow defendants no vested interest in the presence of the moving defendants as co-parties.
“The objecting defendants do not suggest that, upon dismissal, their rights as to the moving defendants will be any less than if the moving defendants had never been joined. Their joinder was a voluntary gift to their co-defendants by plaintiffs and plaintiffs, having given, could take away.”
Relators in the district court sought to have the temporary restraining order vacated as to them and such relief was accomplished when the action was dismissed as to them. While a second action was thereafter filed no temporary restraining order was issued, merely an order to show cause. The other defendants sought no relief either in the district court or before this court. After relators had obtained the relief they sought they were dissatisfied because the entire action had not been dismissed as to all parties. Where counsel represent other parties in litigation it would appear that such counsel will protect the interests of their clients and seek such relief as they deem proper in the circumstances, and courts ought not to interfere with the course of action they have chosen. As the court observed in the Broadway & Ninety-Sixth St. Rlty. Corp. case, supra, there perhaps is an advantage to relators if all defendants in the action were treated the same, but as here appears from both the complaint and restraining order the issues are different in that the relator union is on strike and the other defendant unions are not on strike and the fact situ ations are separately stated in the complaint and different relief sought as to each group and as between relators and the other defendants the restraint set forth in the order is separately stated as to relators and the other defendants.
Because of these differences and the fact that we are here concerned only with the proceedings with regard to relators, we cannot say that the district court abused its discretion in denying relators’ motion to dismiss as to the other defendants.
Relators seek reasonable and necessary fees for their counsel and since no return or answer has been made herein by respondents we must accept the allegations of relators as true. The affidavit of Kenneth Davis, business manager of the relator Union accompanying the petition, avers that the Union was compelled to engage the services of counsel to prosecute this Original Proceeding, and that the reasonable value of such services has been stipulated to be the sum of $1,000.
In view of our holding that the respondent court exceeded its jurisdiction in issuing the restraining order insofar as it applied to relators in Cause 51816, $1,000 attorney fees are allowed to relators, the same to be a charge against Silver Bow County.
MR. JUSTICES ADAIR, CASTLES and JOHN C. HARRISON concur.
MR. JUSTICE DOYLE did not participate in the hearing or determination of this appeal.
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MR. JUSTICE McDONOUGH
delivered the Opinion of the Court.
Liberty Mutual Fire Insurance Company (Liberty) appeals from the order of the Workers’ Compensation Court of the State of Montana granting plaintiff Rita Gould’s motion for a new trial. We affirm.
Liberty frames four issues for review by this Court:
1. Whether the grounds on which the Claimant based her motion for a new trial were insufficient as a matter of law to allow the Workers’ Compensation Court to grant a new trial.
2. Whether the Workers’ Compensation Court Judge may grant a new trial by reversing his Hearing Examiner’s findings of fact.
3. If the Worker’s Compensation Court Judge may grant a new trial by reversing his Hearing Examiner’s findings of fact, then may he do so by substituting his judgment for that of his Hearing Examiner’s of the credibility (i.e. competency) of a witness whose demeanor and character his Hearing Examiner has observed and judged but who he, the Workers’ Compensation Court Judge, has never observed.
4. Whether the Claimant complied with the 60-day notice requirement of Section 39-71-603, MCA (1985).
On September 8, 1986, Rita Gould filed a Petition For Hearing in the Montana Workers’ Compensation Court. She alleged her preexisting conditions of cervical and lumbar spondylosis had been aggravated in the course of her employment, leading to an incident on May 26, 1985, when she experienced dizziness and severe neck, shoulder and back pain while at work. According to Gould’s petition, the incident was a “culmination of symptoms” related to her employment. The symptoms persisted, rendering Gould temporarily totally disabled.
The Workers’ Compensation Court appointed a Hearing Examiner for Gould’s claim. The examiner held a hearing at which testimony was taken and evidence introduced. He subsequently issued his Findings of Fact and Conclusions of Law and Proposed Judgment. He denied Gould’s claim on the ground that she had failed to notify her employer of her injury within 60 days as required by Section 39-71-603, MCA (1985). The Hearing Examiner’s proposed judgment was adopted by the court in an order issued the same day as the proposed judgment. The court’s order also stated that any party to the dispute would have 20 days to request a rehearing.
Gould timely filed her Motion For New Trial, in which she alleged that the Hearing Examiner did not consider two items of evidence she considered crucial. Gould pointed to a handwritten memo by the store manager in which he noted suggesting to Gould that she begin her retirement if working conditions at the store were detrimental to her health. She also cited an insurance claim form signed by Gould and the store manager on which Gould had answered “yes” to the question, “Is illness or injury due to Claimant’s occupation?” Both documents were dated within 60 days of the date of Gould’s injury, and she contended that they provided actual notice to her employer of her injury and its relation to her employment. The court granted Gould’s motion in its order of March 16, 1988:
“These two written notices are sufficient to establish that actual notice was given to the employer within 60 days, as required by Section 39-71-603, MCA.
“The Court concludes that it erred in not recognizing the two written statements in evidence cited by claimant which do establish notice and that manifest injustice would be done if claimant were not granted a rehearing.”
This appeal followed.
Our review of the record and relevant authorities indicates that the four issues framed by Liberty can be restated as one. What is really at issue in this appeal is whether the Workers’ Compensation Court Judge can order a new trial on the ground that the Hearing Examiner apparently disregarded or was not aware of pieces of evidence that were crucial to the case. We hold that the judge has that power.
Both parties acknowledge the court’s ability to grant a new trial under Rules 2.52.340 and 2.52.344 of the Administrative Rules of Montana. The parties disagree, however, on the propriety of the court’s grounds for granting a new trial in this case.
Liberty sets out two inconsistent arguments that sufficient grounds for a new trial do not exist. The first argument states the decision was improper under sections of the civil procedure code. The second argument is based on rules of administrative procedure. The inconsistency of these positions is symptomatic of the unique position occupied by the Workers’ Compensation Court. On one hand, the Workers’ Compensation Court is not a full-fledged District Court. Its jurisdiction is limited to workers’ compensation matters, and its procedures are less formal. For example, Section 39-71-2903, MCA (1985), states that the Montana Administrative Procedure Act (MAPA) applies to the court’s proceedings, while the rules of evidence do not. On the other hand, the court’s decisions are something more than administrative agency decisions. Agency decisions are normally appealable to District Court, but Section 39-71-2904, MCA (1985), provides that decisions of the Workers’ Compensation Court are appealed directly to this Court. Liberty’s reliance on both civil and administrative procedure is thus warranted. Both arguments are supported by authority from this Court. However, the focus of Liberty’s argument is misplaced.
We note that both of Liberty’s arguments are premised on the limited power of the Workers’ Compensation Court to review oral testimony. Liberty seeks to take advantage of this limited power of review by casting Gould’s motion as a disagreement with the weight given her own testimony before the Hearing Examiner. This is a mischaracterization of Gould’s argument, which is based on two written documents in evidence before the examiner. In addition to granting the power to order a new trial, 2.50.340, ARM, requires that the court conduct its review on the basis of the complete record, with its decision based on the evidence as a whole. Liberty’s premise is thus faulty, and its arguments proceed on a tangent concerning the credibility and demeanor of witnesses that bears little relation to the issue at hand.
Liberty’s first argument suffers as a result of this faulty premise. Relying on our decision in Walter v. Evans Products Co. (1983), 207 Mont. 26, 672 P.2d 613, Liberty asserts that the authority of the Workers’ Compensation Court to grant a new trial is governed by the general civil procedure standards in Sections 25-11-102 and 103, MCA (1985):
“The former verdict or other decision may be vacated and a new trial granted on the application of the party aggrieved for any of the following causes materially affecting the substantial rights of such party:
“(1) irregularity in the proceedings of the court, jury, or adverse party or any order of the court or abuse of discretion by which either party was prevented from having a fair trial;
“(3) accident or surprise which ordinary prudence could not have guarded against;
“(4) newly discovered evidence material for the party making the application which he could not, with reasonable diligence, have discovered and produced at trial;
“Section 25-11-102, MCA (1985).
“No new trial may be granted in cases tried by the court without a jury, except on the grounds mentioned in subsections (1), (3), and (4) of 25-11-102.
“Section 25-11-103, MCA (1985).”
According to Liberty, none of these grounds were argued by Gould in her motion, nor are any presented by the record of this case. Rather, Liberty asserts that Gould merely disagreed with the court as to the weight and relevance of her own testimony.
Liberty relies on Walter for the proposition that disagreement with the weight given to testimony is an insufficient ground for a new trial as a matter of law. However, the Walter decision did not turn on the review of oral testimony. The party seeking a new trial in that case argued (1) the court should have reopened the case to consider newly discovered evidence, and (2) there was a complete lack of probative, credible evidence in the record to support a number of the court’s findings. Walter, 672 P.2d at 616.
When we reviewed the Walter decision, we looked to Sections 25-11-102 and 103, MCA (1985), as the most directly applicable guide on the question of newly-discovered evidence. The issue turned on the fact that the moving party had custody of the evidence in question. In contrast with Walter, the question in this case is whether the examiner’s proposed decision was actually contrary to evidence in the record. The question of newly-discovered evidence is not presented, and the civil procedure statutes cited by Liberty are not applicable.
Liberty’s second argument looks to the provisions of MAPA. Liberty points out that the Division of Workers’ Compensation is an administrative agency, and that under our decision in Hock v. Lienco Cedar Products (Mont. 1981), [_Mont._,] 634 P.2d 1174, 38 St.Rep. 1598, the rules of civil procedure are not directly applicable to the Workers’ Compensation Court. Liberty asserts that under MAPA — specifically Section 2-4-621, MCA (1985) — the Workers’ Compensation Court Judge “sits in a form of appellate review of his hearing examiner’s proposed decision,” and is limited in his review of the hearing examiner’s findings of fact. In relevant part, the statute states:
“The agency in its final order may reject or modify the conclusions of law and interpretation of administrative rules in the proposal for decision but may not reject or modify the findings of fact unless the agency first determines from a review of the complete record and states with particularity in the order that the findings of fact were not based upon competent substantial evidence or that the proceedings on which the findings were based did not comply with essential requirements of law.”
Section 2-4-621(3), MCA (1985). Liberty also notes that 2.52.340, ARM, contains a similar standard:
“Findings of fact made by a hearing examiner will not be rejected or revised unless the Court first determines from a review of the complete record and states with particularity in the order that the findings of fact were not based upon competent substantial evidence. . .”
2.52.340(3)(a), ARM. Liberty argues that under these standards, it should have been impossible for the court to grant Gould’s motion. According to Liberty, the decision in this case required the court to substitute its judgment for that of the examiner as to the weight given to testimony of witnesses at the hearing.
As with its first argument, Liberty’s application of MAPA suffers from the mistaken premise that only Gould’s oral testimony was before the Workers’ Compensation Court. Liberty is correct in its assertion that the judge in this case sat in a form of review of the examiner’s proposed decision. However, Liberty’s focus on the standard of review exercised by agencies under Section 2-4-621, MCA (1985) is inappropriate. As we stated above, the procedure in the Worker’s Compensation Court is not the same as that followed by an agency. We have previously noted this fact when distinguishing case authority dating from before the court’s creation.
“[The party’s] principal case was handed down before the Worker’s Compensation Court was established. At the time of that case, the division conducted its own contested case hearings like all other agencies."
Hock, 634 P.2d at 1178 (Emphasis added.). While the Workers’ Compensation Court is not a full-fledged District Court, Sections 39-71-2901 through 39-71-2909, MCA (1985), grant the court authority broader than that exercised by an agency:
“Although the Workers’ Compensation Court is not vested with the full powers of a District Court, it nevertheless has been given broad powers concerning benefits due and payable to claimants under the Act. It has the power to determine which of several parties is liable to pay the Workers’ Compensation benefits, or if subrogation is allowable, what apportionment of liability may be made between insurers, and other matters that go beyond the minimum determination of the benefits payable to an employee.”
State ex rel. Uninsured Employers' Fund v. Hunt (Mont. 1981), [191 Mont. 515,] 625 P.2d 539, 542, 38 St.Rep. 421, 425 (Emphasis added.). One “other matter” specifically provided for in 2.52.340, ARM, is the power to grant a new trial.
In view of the broader powers exercised by the court, we hold the standards for judicial review of a master’s report found at Rule 53(e), M.R.Civ.P., are more applicable to the facts of this case than the standard urged by Liberty:
“Report. (1) Contents and filing. The master shall prepare a report upon the matters submitted to him by the order of reference and, if required to make findings of fact and conclusions of law, he shall set them forth in the report . . .
“(2) In nonjury actions. In an action to be tried without a jury the court shall accept the master’s findings of fact unless clearly erroneous . . . The court after hearing may adopt the report or may modify it or may reject it in whole or in part or may receive further evidence or may recommit it with instructions.”
The Workers’ Compensation Court Judge appointed the Heading Examiner to hear the evidence in this case, but it was for the court to make the final decision. The examiner’s findings, conclusions and proposed decision were submitted to the court for its approval.
When reviewed in light of Rule 53(e), the record supports the court’s decision to grant a new trial. The memo and insurance form indicate that Gould’s employer knew of her injury and knew — or should have known — that the injury was related to her employment. This constitutes notice. The Hearing Examiner’s denial of Gould’s claim was based on the lack of such notice. As Gould’s properly-filed motion served to point out, the examiner’s findings of fact were therefore clearly erroneous. The court was correct in holding that proper notice had been given, and a new trial should be granted.
We affirm the decision of the Workers’ Compensation Court that Gould gave proper notice of her injury, and remand the case for a new trial on the merits of her claim.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES SHEEHY, WEBER and GULBRANDSON concur.
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JUSTICE WEBER
delivered the Opinion of the Court.
The District Court for the Eighth Judicial District, Cascade County, granted Anita Wilsey’s (Mrs. Wilsey) motion for judgment on the pleadings, or in the alternative, summary judgment. Christopher Joseph Wilsey (Mr. Wilsey) appeals. We reverse and remand.
We restate the issue as follows:
Did the District Court err in holding that Mr. Wilsey owed 37 months of child support at $1500 per month, less $3300 paid, and in holding that he owed $1500 per month until the children graduated from high school, without regard to the sale of his limited partnership interest?
Mr. and Mrs. Wilsey were married in San Francisco, California on July 2, 1978. There were three children born of the marriage.
On June 3, 1988, the parties entered into a separation agreement. The agreement was signed by the parties and was signed and approved by their respective attorneys.
Paragraph three (3) of the agreement provided:
That the interest of Chris in the limited partnership, Pyrite Investors, shall be liquidated and the proceeds placed in trust for the payment of child support in the total amount of $1,500.00 per month to Anita. When the youngest child reaches majority or is otherwise emancipated, any funds remaining in the trust will be distributed to the children. An independent trustee, possibly Steve Wilsey, will manage the trust;
Mrs. Wilsey filed a petition for dissolution on August 25,1988. She subsequently filed an amended petition for dissolution in which she alleged the existence of the June 3, 1988, separation agreement and requested enforcement of the agreement.
In his answer, Mr. Wilsey admitted that the separation agreement existed but denied that it was final. Rather, he alleged that the agreement was entered into due to extreme economic pressure, and contended that the agreement was invalid and unenforceable.
On June 25,1991, over 3 years after the execution of the separation agreement, Mrs. Wilsey filed a motion for judgment on the pleadings, or in the alternative, summary judgment, and a motion for determination of child support arrearages. Mr. Wilsey filed his brief in response to the motions on July 1, 1991. The District Court also received an affidavit from Mrs. Wilsey’s attorney, Richard Dzivi, as well as an affidavit from Mr. Wilsey. A hearing was held on July 31, 1991.
The District Court determined that the parties had equitably divided all property and debts not disposed of in the settlement agreement. It then granted Mrs. Wilse/s motion for judgment on the pleadings, or in the alternative, summary judgment, finding that the settlement agreement was final and not unconscionable. In that regard the court found:
37. The June 3, 1988 Property Settlement Agreement is enforceable and not unconscionable, and should be approved. [Mr. Wilsey’s] child support obligation has been accruing for 37 months at the rate of $1,500. 00 per month for a total arrearage of $55,500. 00. [Mr. Wilsey] has paid $3,300. 00 in child support. Accordingly, [Mr. Wilsey] is indebted to [Mrs. Wilsey] for the sum of $52,200.00 for past-due child support.
The court then concluded:
3. [Mr. Wilsey] owes a child support arrearage of $52,200. 00 to [Mrs. Wilsey]. She is entitled to immediate execution therefor.
4. [Mr. Wilsey] shall pay to [Mrs. Wilsey] the sum of ONE THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($1,500. 00) per month as and for the care, support and maintenance of said minor children until they graduate from high school, except while they are wholly self supporting or otherwise emancipated.
5. Said payments shall commence immediately...
Mr. Wilsey appeals from that portion of the District Court’s order concerning child support.
Did the District Court err in holding that Mr. Wilsey owed 37 months of child support at $1500 per month, less $3300 paid, and in holding that he owed $1500 per month until the children graduated from high school, without regard to the sale of his limited partnership interest?
Mr. Wilsey maintains that under paragraph three of the separation agreement, he was to pay child support at $1500 per month only after he liquidated his interest in Pyrite Investors and placed the proceeds in trust for the payment of such child support. Thus, he contends that since his interest in Pyrite Investors has yet to be liquidated, no obligation to pay child support under the agreement has yet accrued.
Again, paragraph three (3) of the agreement provided:
That the interest of Chris in the limited partnership, Pyrite Investors, shall be liquidated and the proceeds placed in trust for the payment of child support in the total amount of $1,500. 00 per month to Anita. When the youngest child reaches majority or is otherwise emancipated, any funds remaining in the trust will be distributed to the children. An independent trustee, possibly Steve Wilsey, will manage the trust;
Both parties agree that Mr. Wilsey’s limited partnership interest in Pyrite Investors has not yet been liquidated. As a result, there are no proceeds from the liquidation of that partnership interest which can be placed in trust for the payment of child support of $1500 per month as provided in the agreement. In itself the separation agreement fails to provide what should happen regarding the payment of child support in the event that the limited partnership interest is not liquidated. We conclude that because of the failure to liquidate the Pyrite Investors limited partnership interest, there is no basis under the separation agreement for the District Court child support arrearage order of $52,200, or the award of $1500 per month. The materials considered by the District Court on summary judgment indicate there are issues of fact as to the value of the partnership and as to the reasons for failure to liquidate. In addition, there appear to be issues of fact as to the capacity of Mr. Wilsey to pay the obligation of child support as ordered by the District Court. There are also issues of fact with regard to the amount of child support which may be due without regard to the separation agreement provision. In view of these issues of fact, summary judgment was not appropriate. We hold that the District Court erred in its holding that Mr. Wilsey owed 37 months of child support at $1500 per month, less $3300 paid, and holding that he owed $1500 per month, all under the separation agreement.
In reaching the above conclusion, we are not suggesting that Mr. Wilsey does not have child support obligations to his children. As pointed out in State Dept. of Revenue v. Hubbard (1986), 222 Mont. 156, 160, 720 P. 2d 1177, 1179, child support is a social and moral obligation imposed by law without court action, and whether or not a court has ordered payment of child support, a parent has an obligation to pay it. The materials considered by the District Court indicate that Mr. Wilsey has failed to adequately meet his child support obligations. This issue will properly be considered on remand.
We reverse the District Court’s holding that under the separation agreement, Mr. Wilsey owed a child support arrearage to Mrs. Wilsey in the amount of $52,200, and that he was obligated under that agreement to pay $1500 per month in child support until the children graduate from high school. We remand to the District Court for a determination of the proper amount of child support to be paid by Mr. Wilsey and for determination of such issues as the court finds exist with regard to the liquidation of the Pyrite Investors partnership interest, and for such other matters as the court deems appropriate, including the issue of amendment of pleadings. Without ruling upon the same, we note that the Rules of Civil Procedure have been broadly construed to permit amendments of pleadings such as those originally sought by Mr. Wilsey.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON, GRAY, TRIEWEILER, McDONOUGH and HUNT concur.
|
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MR. JUSTICE METCALF:
Application for a writ of prohibition. The relator is named as defendant in 16 indictments returned against him by the grand jury of Lewis and Clark county. Two of the indictments were returned on October 7, 1949, three on October 18th and the remaining eleven on November 4th. •
On October 29, 1949, the relator through his counsel filed a civil action against the grand jurors and others. Allegations in that complaint were deemed contemptuous and Porter and counsel, were adjudged guilty of contempt of court and sentenced to pay a fine. A petition for a writ of review was filed in this court to review the contempt proceedings and the order and sentence of the district court was affirmed. See State ex rel. Porter v. First Judicial District, 123 Mont. 447, 215 Pac. (2d) 279.
On December 13, 1949, the two district judges of the first judicial district requested that the board of county commissioners of Lewis and Clark county declare an emergency to exist for the purpose of meeting the mandatory public expenditures required for the continuance of the grand jury.
On December 15, 1949, the relator filed a taxpayer’s suit seeking a writ of injunction restraining tbe board of county commissioners from appropriating any further money for grand jury purposes. It was there contended that the grand jury was illegal and invalid for reasons hereinafter discussed.
This court on December 15,1949, accepted jurisdiction, issued a restraining order, and ordered the defendant county commissioners to show cause why they should not be permanently restrained from making the proposed expenditures for grand jury purposes. Thereupon the two district judges on December 19, 1949, made an order declaring: “No emergency appropriation was ever necessary or required in the first place, but the same was proposed and contemplated purely for the convenience of the county clerk and the board of county commissioners.” The district judges then declared that the court, “has the necessary and proper authority to make or-authorize any expenditures that may arise in the course of the operation of said court, or for the due and proper operation of any grand jury, or other legally constituted body created by and operating under and by virtue of the authority of this court.” The district court then ordered that all action with respect to the proposed emergency appropriation be discontinued as unnecessary.
On January 4, 1950, the day before argument in the above cause was to be heard in this court, Porter moved that his proceedings in this court be dismissed for the reason that the defendants “have cancelled and withdrawn their proposed emergency appropriation * * * for the use of the Special Grand Jury, and that the question * * * presented is now moot.” No pleadings had been filed by the defendants or affirmative relief demanded. Therefore this court granted the motion and dismissed the action. Porter v. Knapp, No. 8950, Mont., 214 Pac. (2d) 765.
On January 5, 1950, Roger Porter filed and presented a second taxpayer’s proceeding to restrain the board of county commissioners of Lewis and Clark county and the county treasurer and auditor from paying any warrants for grand jury purposes. This court declined to accept jurisdiction and the writ prayed for was denied. See Porter v. Thielen, 214 Pac. (2d) 743, reported in the memorandum decisions review.
The procedure that led to the filing of the petition at bar began when the relator on November 15, 1949, filed a motion to “quash” the indictments, alleging, “That the indictments wholly fail and neglect to fall within the requirements of section 11891, R. C. M. 1935 [R. C. M. 1947, sec. 94-6601], and particularly Paragraphs 1, 2, 4 and 5 thereof.” The relator also offered to prove other irregularities and departures from the statutes on the part of the grand jury.
The grounds for setting aside an indictment of a grand jury are set forth in section 94-6601, supra, and are exclusive. Territory v. Harding, 6 Mont. 323, 328, 12 Pac. 750. The trial court properly refused to consider any grounds for setting aside the indictment not enumerated in section 94-6601.
On March 7,1950, Porter appeared for arraignment. Before pleading it was stipulated that he could withdraw his plea within 25 days and move to set aside the indictments for irregularities set forth in section 94-6601, R. C. M. 1947.
On all 16 of the indictments are endorsed the names of witnesses purporting to have appeared before the grand jury. In addition to other witnesses each indictment had the name of “John Doe” and “Richard Roe” endorsed thereon as witnesses. On March 13, 1950, Porter filed a demand for a bill of particulars requesting the true names of the witnesses designated as “John Doe” and “Richard Roe” on the indictments. When the requested information was not supplied by the county attorney a demand to produce was filed on March 30,1950.
On the same day a motion to withdraw the plea of not guilty was filed, together with an amended motion to set aside the indictments. On March 31st in accordance with the aforementioned stipulation of March 7, 1950, leave to withdraw his plea was granted Porter and hearing on the motion to set aside the indictment was set for April 3, 1950. On that date Porter renewed his demand for a bill of particulars to reveal the true identity of witnesses “John Doe” and “Richard Roe” endorsed on the indictments. On April 10th the court of its own motion issued an order striking the names of “John Doe” and “Richard Roe” from the indictment “pursuant to agreement of counsel for the state ’ ’ and in all other respects denying the relator’s demand for a bill of particulars. Amended motions to set aside the indictments were heard on April 20th. Relator’s counsel on April 20th protested that he had not been served with the court’s ruling on his demand for a bill of particulars and attempted to renew his demand. The court said, “There was consent that these names be stricken from the indictment which indicates there were no such witnesses. In other words, they [the prosecution] are familiar with the rule that the names of witnesses must be endorsed on the indictment before it is returned.” Counsel for the relator insisted that the fictitious names represented two actual witnesses who testified before the grand jury. He further asked that “special prosecutor” Small be sworn to testify as to whether or not there were other witnesses. Small objected that it would be “prejudicial error” for him “to testify to something that has transpired in the grand jury room that is secret.” Small further told the court, “Neither now or at any future date, if we can help, are we going to be baited by names or otherwise into disclosing things that shouldn’t be disclosed and thereby giving them an opportunity, possibly, to have something they don’t have now. ’ ’
The court sustained the prosecutor’s objection and at the conclusion of the hearing denied relator’s motion to set aside the indictments.
On May 9, 1950, the relator filed the instant case in which he asked this court to review the record and pleading summarized above and issue a writ of prohibition or other appro priate writ to prevent the district court from trying him under any of the 16 indictments.
The cause was heard on June 12, 1950, and the respondents on that day filed a demurrer and motion to dismiss the proceedings. Without prejudice to the consideration of the demurrer and motion to dismiss, the respondents were ordered to file an answer, which was done.
Prior to the hearing, 17 members of the bar of Lewis and Clark county petitioned for leave to appear as amici curiae, alleging that the cause at bar “involves difficult and novel questions of law, the determination of which vitally affects the district courts of the State of Montana, and the interests of the people of the State of Montana.” Leave was granted in accordance with their request.
The relator contends: 1. The name of the prosecuting witness as such was not endorsed on the indictment as required by section 94-6331;
2. The true names of all the witnesses examined before the grand jury were not endorsed on the indictment as required by section 94-6331;
3. Unauthorized persons were present before the grand jury when the charges embraced in the indictments were under consideration.
The failure to endorse the names of witnesses or endorse the indictment as prescribed in the Code and the presence of unauthorized persons before the grand jury are grounds for setting aside the indictment under the provisions of section 94-6601. But section 94-6602 declares that unless the motion to set aside on these grounds be made before the defendant demurs or pleads the grounds of the objection are waived.
It is contended that since these defects can be waived they are not jurisdictional (14 Am. Jur., Courts, sec. 184, p. 380; State v. Vanella, 40 Mont. 326, 333, 106 Pac. 364, 20 Ann. Cas. 398), and not being jurisdictional defects they cannot be attacked by a petition for a writ of prohibition because section 93-9201 limits the function of the writ of prohibition to arrest “the proceedings of any tribunal * * * when such proceedings are without or in excess of the jurisdiction of such tribunal. * *
However in the exercise of its superintending control over the courts, this court has jurisdiction, Const, of Montana, Art. VIII, sec. 2, to correct error within jurisdiction, State ex rel. Regis v. District Court, 102 Mont. 74, 55 Pac. (2d) 1295, when necessary to prevent extended and needless litigation, State ex rel. Barron v. District Court, 119 Mont. 344, 174 Pac. (2d) 809. In the case at bar amici curiae and the county attorney both concede that the issues are of such vital importance as to affect not only the indictments in the instant case but all the proceedings of the grand jury. Not only the rights of the relator but the validity of other indictments are involved. If all the defendants indicted by the grand jury are required to go to trial with these issues undecided serious miscarriages of justice may occur and expensive and needless jury trials take place causing useless expense to the taxpayers and subjecting the relator and other accused to fruitless and unnecessary trials.
It is next contended by respondents that the motion to set aside was insufficient. While the motion itself is incomplete, its sufficiency was waived in the court below and the motion was submitted and argued on its merits. Near the close of the argument on the motion the special prosecutor declared, “This thing that purports to be, I guess, a motion to set aside an indictment; it is actually not anything * * *. So, while we haven’t objected and do not'now formally object to this so-called motion, we would normally except if we did. * # * To facilitate matters we have let this go and permitted it to be considered as a proper motion to set aside an indictment * * *. ” After the hearing and argument on this theory the respondents cannot now object to the sufficiency of the motion. The objection was expressly waived.
As an institution of Anglo-Saxon justice, the origins of the grand jury go back to antiquity. The grand jury is mentioned in the Constitutions of Clarendon and such accusatory tribunals sat before the adoption of the Magna Charta. In the federal courts today the Constitution of the United States provides that “no person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury * * *.1 ’ Amend. Y, U. S. Constitution.
The grand jury in medieval England was a protector of the rights of the individual from tyranny of the Crown. As such a protection against arbitrary and oppressive action of the government as well as a means of bringing persons accused of public offenses to trial, the grand jury system became a part of the criminal procedure of this nation. Since the twelfth century a great body of case law has grown up explaining methods and procedure in the conduct of a grand jury. This common law has been incorporated into the statutes of many states and is the case law in others. Montana’s grand jury procedure has been virtually unchanged since the adoption of the first Codes after the Constitutional Convention and many of our statutes have remained unchanged since the adoption of the Bannock Statutes in 1864. Montana’s statutory grand jury procedure is almost unchanged from the common law procedure.
The inflexibility of the grand jury system, its cumbersome procedure and its technicalities brought about agitation for its abolition and the substitution of the system of prosecution by information. Present day jurisdictions that still use the grand jury method of prosecution have repeatedly reformed their procedure to simplify it and render it less technical. But in any discussion of shorter indictments and simplified procedure the emphasis is on the fact that such reform is a legislative matter. Perkins in his article in 15 A. B. A. J. 292, Short Indictments and Informations, succinctly stated the problem: “The whole case law of indictments cannot be turned upside down by the Bench.”
Whatever may be the result of simplified procedure for finding indictments, the consensus of the bar is as expressed by Millar in The Function of Criminal Pleading, 12 Journal of Criminal Law 500, “In any remodeling of our criminal procedure, equality of position in the trial of the case, as between prosecution and defense should be steadfastly maintained. ’ ’
The Proceedings and Debates of the Constitutional Convention of Montana indicate another reason behind the movement to abolish the grand jury system of indictment and presentment. This is the secrecy of the proceedings, originally adopted as a part of the cloak protecting the subject from the tyranny of the sovereign, in later years came to be an instrument of malice and spite in the hands of cowardly and secretive informers.
The historical background of grand juries, the common law that has grown up around them, and the criticism of the grand jury system become significant in considering the first and second grounds put forward for the setting aside of the indictment.
The first statutory ground relied upon is that the name of the prosecuting witness as such was not endorsed on the indictment as required by section 94-6331, R. C. M. 1947, so that the indictment was not endorsed as prescribed in the Code. R. C. M. 1947, sec. 94-6601, subsec. 1.
Not only in Montana’s Constitutional Convention but in other jurisdictions within and without the United States students of the law were complaining that the secret inquisition of the grand jury was detrimental to the rights of the people. Jurists and lawyers were demanding as did Mr. Burleigh of Custer in our Constitutional Convention, “that a man should go clothed in the full panoply of manhood and make his complaint against the accused. ’ ’
In Cody v. State, 1838, 3 How, Miss. 27, the statute required the district attorney “to mark upon all bills of indictment the name of the prosecutor or prosecutors.’’ The court said: “This statute was designed to protect the state against the payment of costs for frivolous and malicious prosecutions by affording certain record evidence of the person who'had perverted the criminal jurisprudence of the county from its true objects and sought to make it a means to gratify his malice and revenge. * * * This act had another most important and salutary object in view, and that was to enable a party against whom a malicious and vexatious prosecution is instituted, to ascertain, with certainty, the hand from whence the injury to his reputation has proceeded. * * * But, these objects may be defeated by a neglect on the part of the officers of the state to comply with the directions of the statute. We are of the opinion, therefore, that this indictment is bad for that reason. ’ ’ Followed in Peter, a Slave, v. State, 3 How., Miss., 433. See also: Williams v. State, 9 Mo. 270; State v. McCourtney, 6 Mo. 649; Commonwealth v. Hutcheson, 1 Bibb, Ky., 355; Allen v. The Commonwealth, 2 Bibb, Ky., 210; Medaris v. State, 18 Tenn. 239.
The common law, too, required such information to be part of the indictment. “The prosecutor or party injured * * * must be described with certainty * * Waterman’s Arch-bold on Criminal Procedure, Pleading and Evidence, 7th Ed., Yol. 1, p. 265, and 1 Chitty’s Criminal Law, 3d Am. Ed. 211, and English eases there cited.
In U. S. v. Sandford, 27 Fed. Cas. page 952, No. 16,221, 1 Cranch C. C. 323, the court had under consideration a Virginia statute requiring the endorsement'of the name of the prosecutor at the foot of every bill of indictment. The court said: “If the words of this section are construed strictly, and if the omission to write the name of the prosecutor vitiates and renders void the indictment, then it is not in the power of government, nor of the grand jury, to prosecute an offender who has been guilty of the grossest misdemeanor, unless some individual person will become prosecutor, and make himself responsible for costs. * * * The grand jury could not find a bill even on tlieir own knowledge, although bound to do so by their oath. The court could not order a bill to be sent to the grand jury even for the most aggravated trespass or misdemeanor. * * * The question which naturally occurs upon the words ‘the prosecutor,’ is, what prosecutor? The answer must be, the person who voluntarily goes before the grand jury with his complaint. Before, therefore, you can require that the name of such a prosecutor should be written at the foot of the indictment, you must show his existence. You must show that there was some person who voluntarily complained to the grand jury.”
Although some of the charges in the 16 indictments-returned against the relator are the kind that ordinarily would have arisen out of complaints by a prosecuting witness, it cannot be presumed from the present record that there was such a prosecuting witness. Perhaps the witnesses testified reluctantly or the evidence was assembled by the grand jury after examination of the number of witnesses, none of whom could be designated the prosecuting witness. If there was a prosecuting witness, the law requires that the endorsement on the indictment identify him. Candor and justice require that he should be identified. Only in that way may the cowardly and spiteful informer be separated from the public spirited citizen who comes forward “in the full panoply of manhood to make his accusation.” Where, as here, the relator requested the information as to whom the prosecuting witness was, he should have been told. If there is no special prosecuting witness he is entitled to that information.
The second ground for setting aside the indictment, i. e., the endorsement of the fictitious names “John Doe” and “Richard Roe” on the indictment and the refusal of the state to reveal the true names of those persons, raises similar questions.
Respondents’ brief declares, “* * * because we were unable to find any other witnesses that had been overlooked, we were directed and consented to the striking of those names from the indictment. It was at that time made clear to petitioner and to his counsel that there were no such witnesses and that was the reason for their names being so stricken. Incidentally in this connection, and by our own answer and return filed in this case, it is set forth that there were no such witnesses, and that all of the persons that should have been endorsed on the indictments here have been endorsed.”
An examination of the respondents’ answer and return reveals that the only mention of the witnesses “Richard Roe” and “John Doe” is as follows: “Respondents deny that respondent court made any order requiring the plaintiff (below) State of Montana, to furnish defendant (relator herein), with the true names and identity of John Doe and Richard Roe by any specific time or at all, and respondents further deny that the acts alleged * * # or any acts or omissions of respondents, whatsoever, have resulted in denying said petitioner of any vital information, or of any information whatsoever, necessary to his defense to the said Indictments.”
Nowhere in the answer is there any allegation that there were no such witnesses as “Richard Roe” and “John Doe.” The allegation quoted above is a conclusion of the pleader that any information that may have been withheld was not vital or necessary to the preparation of a defense. The respondents could truthfully verify that answer even if there were actual witnesses if they believed the testimony of such witnesses was not vital or necessary. The question of the importance of the witnesses’ testimony is for the defense, not the prosecution. The statute requires the endorsement of the names of all witnesses, not merely the names of witnesses the state beliéves to be important.
Nor does the record corroborate the allegation that it was made clear to relator and his counsel that there were no such witnesses as “Richard Roe” and “John Doe.” The record shows, as quoted above, that counsel for defendant did not know that his demand for a bill of particulars had been denied and the names of “Richard Roe” and “John Doe” stricken from the indictment until the hearing on the motion to set aside the indictment. The court concluded that the consent of the prosecution to strike the names “indicates there were no such witnesses.” But there is no testimony from counsel for the state that there were no such witnesses. Indeed there was a refusal to answer when the defense tried to elicit the information by direct examination. The information the prosecution refused to reveal might not have been “vital information” or “necessary to the defense to said indictments” but it was information that special prosecutor Small believed would give the defense “an opportunity possibly to have something they don’t have now.”
Stephen in The History of the Criminal Law of England (1883), Yol. 1, p. 350, summarizes some of the differences between early English trials and those of his day. In those early trials, (1) the prisoner was kept in confinement more or less secret till his trial, and could not prepare for his defense.
(2) He had no notice beforehand of the evidence against him, and was compelled to defend himself as well as he could when the evidence, written or oral, was produced on his trial.
(3) The witnesses were not necessarily (to say the very least) confronted with the prisoner.
(4) It does not appear that the prisoner was allowed to call witnesses on his own behalf; but it matters very little whether he was or not; as he had no means of ascertaining what evidence they would give, or of procuring their attendance.
In the present day the accused is presumed to be innocent until he is proven guilty and the burden is on the prosecutor to prove the guilt of the offender beyond a reasonable doubt. This is a benefit which every one enjoys under the law. State v. Hanlon, 38 Mont. 557, 100 Pac. 1035. To make this presumption operative the Montana Constitution has provided: “In all criminal prosecutions the accused shall have the right to appear and defend in person and by counsel; to demand the nature and cause of the accusation; to meet the witnesses against him face to face; to have process to compel the attendance of witnesses in his behalf * * Art. Ill, sec. 16, Mont. Const.
The constitutional right to meet witnesses face to face and to demand the nature and cause of the accusation can be made ineffective if the state can conceal the names of its witnesses until the day of the trial. "The furnishing of such a list [of witnesses] should be an essential feature of any system of criminal procedure.” Millar, The Function of Criminal Pleading, supra. See Proceedings of American Law Institute, Yol. 8, p. 132 et seq., where this question is discussed relative to the adoption of section 194 of the Uniform Code of Criminal Procedure.
The reason for the endorsement of the names of the witnesses was given by this court in State v. McDonald, 51 Mont. 1, 5, 149 Pac. 279, 281, "The provision was intended as a safeguard to the accused against surprise and unfair advantage by the prosecuting officer * * *.”
The prosecuting officers in their sworn answer failed to deny that there were any witnesses concealed under the names of "Richard Roe” and "John Doe.” They refused to take the stand and testify under oath that there were no such witnesses. The special prosecutor told the court that the prosecution was not going to give the defense "an opporunity, possibly, to have something they don’t have now.”
It has long been settled that the "names of witnesses * * * are not secrets to be undivulged.” Ex parte Schmidt, 71 Cal. 212,12 Pac. 55, 56. The only way the defendant can determine whether there has been compliance with the statute requiring endorsement of the names of witnesses is to ask the foreman of the grand jury or the county attorney. The court should have required the special prosecutor to testify as to whether or not any more witnesses had given testimony that contributed to the finding of the indictments against the relator. Cf. Territory v. Hart, 7 Mont. 42, 14 Pac. 768.
The court’s conclusion from the consent of the state to have “Richard Roe” and “John Doe” stricken that “there were no such witnesses” is a matter of which the court could have no knowledge, a conclusion that is not justified from the pleadings or evidence. It was error to deny the relator the right to inquire as to whether there were actually witnesses hidden behind the aliases of “Richard Roe” and “John Doe.”
The state contends that the ease of State v. McDonald, supra, gives it the right to conceal the identity of a witness behind an alias. In that case a witness’ name was endorsed on the information as “John Doe Mitchell” when his true name was James Mitchell. The county attorney stated that the identity of the witness had been concealed because if the witness’ true name had been disclosed his life would have been in danger. The court said that failure to endorse the names of the witnesses was indefensible from any point of view. The endorsement was on an information but the court said, ‘ ‘ The provision was intended as a safeguard to the accused against surprise and unfair advantage by the prosecuting officer, and to serve the same purpose as a like provision relating to the disclosure of the names of witnesses upon whose testimony an indictment is found and returned by a grand jury.” The court declared that the purpose of the statute was “that the defendant, so far as reasonably possible, may be advised of the witnesses known to the county attorney when the information is filed, whom the state intends to call against him, in order that he may have the opportunity to make inquiry with respect to them and prepare himself to meet their testimony.” (Citing cases.)
In State v. Gaimos, 53 Mont. 118, 162 Pac. 596, 597, this court called attention to State v. McDonald, supra, and said: “The defendant in all cases is entitled to know what person will be called to testify against him, and every reasonable opportunity he might desire to investigate them, or to prepare to meet their testimony, should be accorded him.”
If the relator is compelled to go to trial without learning of the true identity of the persons designated as “Richard Roe” and “John Doe,” or whether there actually were any such persons, and if he is convicted, we would be required to review the whole record and sustain the conviction if possible. Under such circumstances the burden would be upon the relator to show prejudice. R. C. M. 1947, sees. 94-6434, 94-8207; State v. Hay, 120 Mont. 573, 194 Pac. (2d) 232. Where the accused has gone to trial without interposing proper and timely challenge, prejudice is not imputed for the failure of the grand jury to endorse the names of the witnesses.upon the indictment. State v. McDonald, supra; State v. Gaimos, supra.
Yet at this stage of the proceedings before trial, the statute requires the indictment be set aside when the names of witnesses are not endorsed on the indictment. Here is a timely motion to set aside the indictment and the relator is being deprived of a substantial right by the court’s refusal to comply with the statute. If there were no witnesses it is the duty of the prosecution to so state either by a verified pleading or under oath; if there were witnesses identified as “John Doe” and “Richard Roe” it is indefensible for the prosecution to conceal their identity from the accused merely because the prosecutor believes that a disclosure of their true names is not “vital” or “necessary to prepare a defense.”
The next contention upon the part of the relator is that the indictment should be set aside because of the presence of persons before the grand jury not provided for in section 94-6324, R. C. M. 1947. That section is as follows: “The grand jury may, at all reasonable times, ask the advice of the court, or the judge thereof, or of the county attorney; but unless such advice is asked, the judge of the court must not be present during the sessions of the grand jury. The county attorney of the county may, at all times, appear before the grand jury for the purpose of giving information or advice relative to any matter cognizable by them, and may interrogate witnesses before them whenever they or he thinks it necessary; but no other person is permitted to be present during the sessions of the grand jury except the members and witnesses actually under examination, and no person must be permitted to be present during the expression of their opinions or giving their votes upon any matter before them.” Emphasis supplied.
Section 94-6601, subsection 3, declares that the indictment must be set aside “When a person is permitted to be present during the session of the grand jury, and when the charge embraced in the indictment is under consideration, except as provided in section 94-6324; * * *.”
A case is “under consideration” before the grand jury when witnesses are being examined. State v. Slocum, 111 Minn. 328, 126 N. W. 1096; People v. Tru-Sport Pub. Co., 160 Misc. 628, 291 N. Y. S. 449, 457.
It was stipulated at the hearing on the motion to set aside the indictments that since July 7, 1949, FLoyd O. Small had appeared before the grand jury and participated in the examination of witnesses and the taking of testimony. Floyd O. Small is a licensed attorney in private practice who was designated “special prosecutor.”
The facts surrounding the appointment of Small as “special prosecutor” are: On May 24, 1949, one of the respondent district judges publicly announced that he was considering calling a grand jury to investigate complaints made to him of alleged gambling extortion rackets being carried on in Helena. On July 6, 1949, the two district judges of the first judicial district ordered that a grand jury be called “to investigate such matters relative to alleged violations of law as shall be brought to its attention.” The same day the county attorney wrote to the board of county commissioners the following letter:
‘‘ Gentlemen:
“I have this day appointed Floyd O. Small as Special Prose cutor for the County Attorney’s office to assist in the conduct of matters before and the presentation of matters to the Grand Jury called by the Judges of the District Court of the First Judicial District of the State of Montana, in and for the county of Lewis and Clark.
“In order that the additional duties which will fall upon this office in the services it must render to the Grand Jury be performed creditably and efficiently, it is essential that a Special Prosecutor be secured. This appointment will continue, so long as the Grand Jury functions.
“This appointment has been submitted to and approved by the District Judges.
“I respectfully request that you approve Mr. Small’s appointment as such Special Prosecutor. ’ ’
The appointment was immediately approved by the board of county commissioners. At that time the county attorney had two deputies.
The grand jury was impaneled on July 25, 1949, one of their number, James W. Salisbury, was appointed foreman, the oath was administered, they were charged by the court, and began the inquiry for which they were called.
“Special prosecutor” Small sat with the grand jury, advising them, examining witnesses and assisting in the conduct of the proceedings. Nowhere is it contended that he was present while the grand jury was voting.
On December 29, 1949, after the filing of the action State ex rel. Porter v. District Court (No. 8950 in this court) the district court made the following order:
“In The Matter of The Grand Jury:
“It appearing to the court that, through inadvertence and misunderstanding, no minute entry was made hereby by the Clerk of this Court concerning this court’s action herein on July 7, 1949, it is hereby Ordered that such minute entry is hereby directed to be entered herein to conform to the actual order announced and rendered by the Court on July 7, 1949, in-.the manner following:
“ ‘The Judges of this Court, deeming it imperative in furtherance of justice and the public welfare and safety, having heretofore called a Grand Jury in Lewis and Clark County, and informing the County Attorney of Lewis and Clark County of that fact, and being advised by the last named official that it is impossible, in viéw of the work currently confronting the Office of said County Attorney for said officer to carry the burden of the duties incident to his office and the further burden of the duties incident to said Grand Jury, and the Judges of this Court having investigated the matter and having concluded that, to enable such Grand Jury to function properly and efficiently, extra assistance for the County. Attorney is necessary; now pursuant to the powers and duties in the Judges of this Court reposed by the Constitution and Laws of the State of Montana, and in exercise of the power inherent in .this Court to make all necessary appointments and expenditures for the proper functioning of said Court and the agencies thereof; does hereby, with the consent and at the request of the County Attorney of Lewis and Clark County, designate and appoint Floyd O. Small, an officer of this Court, duly admitted to practice before this Court, to appear before the Grand Jury called by the Judges of this Court. The compensation of the said Floyd O. Small to be fixed by this Court.
“ ‘In order that the records of this Court in the proceedings herein may speak the truth the above order will be entered as of July 7, 1949, nunc pro tune’.”
A strict reading of the statute would permit only the county attorney, the witnesses actually under examination, the judge if asked to give advice, and the members of the grand jury to be present at any one time.
In State ex rel. Nolan v. District Court, 22 Mont. 25, 30, 55 Pac. 916, 918, the question was whether the attorney general under section 94-6324, supra, could conduct examinations be fore the grand jury. This court held that the attorney general is the principal law officer of the state. He has statutory power to assist and supervise the county attorney. “The attorney general may, in his assistance, do every act that the county attorney can perform, and, in his supervision, may even undo any that he has already done. * * *
“The objects of this statute [sec. 94-6324] are to preserve to the body alone clothed with authority of indicting for public offenses — the grand jury — a right to have witnesses interrogated by official counsel at its sessions, and to keep the proceedings of that body as secret as possible, by excluding therefrom those not vested with official authority; * *
Therefore by analysis of the complete Code and comparison and correlation of the statutes, this court found that the attorney general may be present before the grand jury and assist in the marshalling of evidence and the examination of witnesses without violating section 94-6324 or destroying the validity of the indictment under section 94-6601. There is statutory authority for the presence of the attorney general.
In Territory v. Harding, 6 Mont. 323,12 Pac. 750, the district attorney for the second judicial district, Montana Territory, was absent from the county and there was no one present to act as prosecutor. The court appointed a member of the bar as prosecutor to represent the territory. The special prosecutor appointed signed the indictment and the defendant appealed from a conviction and set forth as one of the reasons for reversal that the indictment was not signed by the district attorney. The statute required that the indictment be signed “by the attorney prosecuting.”
The court asked the rhetorical question: “Why authorize the ‘attorney prosecuting’ to sign indictments if, in all eases, indictment must be signed by the district attorney?” The court answered its question by concluding that there were times when the “attorney prosecuting” might be other than the district attorney. Then the court laid down the circumstances under which a prosecutor might be appointed: “If a court, having general criminal jurisdiction which it is bound to exercise, and is charged with the duty of trying criminal causes, which duty can only be performed or jurisdiction exercised through the instrumentalities of grand juries, and the law failing to provide such instrumentality, has, by necessary and indispensable implication, authority to provide and summon grand juries, then, in such a case and by a similar implication when the necessity arises, and the district attorney is absent or disqualified and the law fails to provide for such an emergency, the court has the power to appoint an attorney to prosecute and to represent the territory, so that the jurisdiction conferred, and which is bound to be exercised, may not fail. This power comes from the law which has created our district courts and invested them with general criminal jurisdiction, which they are bound to exercise and which can only be done through the instrumentality of prosecuting attorneys. This implied power can only be exercised in cases of necessity and in cases for which the law has failed to provide; and then it is co-extensive with the jurisdiction to which it is essential. If the district attorney had been present and not disqualified, no necessity would have arisen to call into exercise this implied power of the court; but in his absence and in the absence of any one authorized to prosecute for the territory, and the law failing to provide for such a case, it was the exercise of lawful authority for the court to appoint a suitable person to represent the territory and prosecute the action, who, for the time being and for the case in hand, became the ‘attorney prosecuting’.” Emphasis supplied.
The same construction would be given section 94-6333, R. C. M. 1947, which provides: “An indictment must be signed by the attorney prosecuting; and when the grand jury returns any indictment into court, the judge must examine it, and if the foreman has neglected to indorse it, ‘A true bill,’ with his name signed thereto, or if the attorney prosecuting has neglected to sign his name, the court must cause the foreman to indorse, or the attorney prosecuting to sign it, as the case may require, in the presence of the grand jury.”
Under this section the attorney general, if he were the “attorney prosecuting” could sign the indictment.
It is urged that the rule of Territory v. Harding should be extended to allow a special prosecutor in cases where the county attorney is present and qualified. The case of Tull v. State ex rel. Glessner, 99 Ind. 238, is cited as authority for this contention. In that case counsel was appointed by the court to assist the prosecuting attorney in the trial of the case. The court held that a trial court has inherent power to appoint counsel to assist the prosecuting attorney in the trial of a criminal case. The court said: “The interests of public justice require that the representatives of the State shall have power to invoke professional assistance for the prosecuting attorney when the occasion demands it. To deny the right of the prosecutor to needed assistance might often lead to the defeat of justice and the escape of offenders who justly merit punishment. The accused is at liberty to summon to his assistance the most learned lawyers and ablest advocates of the bar, and bare justice requires that the State should be granted a corresponding right to call to the aid of its prosecuting attorney counsel learned in the law. The forensic contest should be fought with something like a just equality of opposing forces.”
This court too has sustained the right to appoint a special prosecutor to assist the county attorney in the trial of a criminal action. State v. Whitworth, 26 Mont. 107, 66 Pac. 748. Tull v. State ex rel. Glessner was cited in support of this position. See also, State v. Tighe, 27 Mont. 327, 71 Pac. 3. Since 1909 there has been express statutory authorization for the employment of “special counsel to assist in the prosecution of any criminal case pending.” E. C. M. 1947, sec. 16-1126; Board of Comm’rs of Hinsdale County v. Crump, 18 Colo. App. 59, 70 Pac. 159, and People v. Blackwell, 27 Cal. 65, 66, cited by amici curiae were cases of this kind where the special counsel was appointed to assist in the conduct of the trial.
In Williams v. State, 188 Ind. 283, 302, 123 N. E. 209, 215, the Indiana Supreme Court declared that the rule of Tull v. State ex rel. Glessner, supra, permitted the appointment of a special prosecutor to appear before the grand jury. “* * * while recognizing the expediency and desirability of the state having such assistance in important and difficult criminal causes [this court], was impressed with the view that the duty of providing for such emergencies rests primarily with the Legislature; however, the inherent powers of the court to make such appointments was recognized, and we still adhere to the doctrine that the question is one for the sound discretion of the trial court. [Citing cases.] ”
In Territory v. Harding, supra, this court held that certain powers necessarily inure to a court in order to carry out its functions. These are powers implied from the establishment of the court itself. The judge of a court having a common law jurisdiction has the “inherent right” to do every act necessary to make his court operative under the common law. But when the legislature prescribes the way in which the court may function then the implication of a power is no longer necessary. If a court is established and no procedure is established for the summoning of trial jurors the judge would have the implied power to summon them in any way that was consistent with due process. For the right to trial by jury is a basic right recognized in the common law and by the United States Constitution and no court could function without a jury. But when as here the legislature has provided a procedure for the impaneling of a trial jury, then there is no longer any need for an implied power. The legislative procedure must be followed.
This is all that the court said in Territory v. Harding. “This implied power can only be exercised in cases of necessity, and in cases for which the law has failed to provide. * * *” [6 Mont. 323, 12 Pac. 754.]
The law provides that the county attorney must “attend before and give advice to the grand jury, whenever cases are presented to them for their consideration; * * R. C. M. 1947, sec. 16-3101.
In the instant case the county attorney was present and able to act. In the various matters relating to the grand jury that were heard in this court he was present and ably represented the county. There is no contention that he was disqualified. The pleadings and briefs affirmatively state that the county attorney was cooperative and no question is raised as to his good faith. The only reason given for the appointment of a “special prosecutor” is that the duties of the office were such that there was a necessity for the appointment of someone to aid and assist the grand jury.
In State v. Guthrie, 185 Wash. 464, 56 Pac. (2d) 160, 165, a grand jury was called to investigate the conduct of all county officials. The prosecuting attorney wrote to the judge who called the grand jury that he welcomed an investigation of his office and recommended that a competent attorney be appointed to handle the investigation and the grand jury. The court’s order appointing the special prosecutor recited that it appeared to the court that charges had been made against the prosecuting attorney, that he deemed himself disqualified and it appeared to the court that he was disqualified. Under such circumstances the motion to set aside the indictment was denied. There was a Washington statute authorizing the court to appoint a qualified person to fulfill the duties of the prosecutor when the prosecuting attorney was unable to do so.
A very different situation arises when the county attorney is present and able to act and not disqualified. State v. Guthrie, supra, distinguished the earlier Washington case of State v. Heaton, 21 Wash. 59, 56 Pac. 843, on this basis. In the latter case the grand jury exonerated the prosecuting attorney but suggested that it would be embarrassing for him to advise them and recommended that a special prosecutor be appointed. The prosecuting attorney asked that he be permitted to perform his duty with respect to the grand jury but the court followed the suggestion of the grand jury and appointed a special prosecutor. The Washington Supreme Court held that the office of prosecuting attorney was quasi-judicial and that the court was not authorized to replace him with a special prosecutor. The attendance of the unauthorized appointee upon the grand jury, his advising them and aiding them in their deliberations, was a substantial irregularity requiring the indictment to be set aside.
In this state a “county attorney is a constitutional officer (article 8, see. 19, Const.), acting under oath, vested with authority, and it is his duty to inquire into alleged violations of law, to institute criminal proceedings, and to represent the state in matters and proceedings in his county * * State ex rel. Juhl v. District Court, 107 Mont. 309, 314, 84 Pac. (2d) 979, 981, 120 A. L. ft. 353, “The county attorney in this state, not only directs under what conditions a criminal action shall be commenced, but from the time it begins until it ends his supervision and control is complete, limited only by such restrictions as the law imposes.” Halladay v. State Bank of Fairfield, 66 Mont. 111, 212 Pac. 861, 863.
So in Montana, as in Washington, the county attorney is a public officer, a part of the judicial system, vested with power over the criminal prosecutions in his county and as such officer responsible to the people for the performance of the duties entrusted to him.
Then when a county attorney is not disqualified and is present and able to act may he acquiesce in a stranger taking over his obligations and duties?
A leading case is People v. Scannell, 36 Misc. 40, 72 N. Y. S. 449, 450. There the district attorney employed one Samuel Ordway special counsel to present and conduct the proceedings against the defendants before the grand jury. The New York statute, Code Or. Proe. sec. 313, like Montana's, provided that an indictment must be set aside “when a person has been permitted to be present during the session of the grand jury, while the charge embraced in the indictment is under considera tion,” except the court, the district attorney and the witnesses. The court stated the question, “Has the district attorney a right, in the absence of statutory authority, to delegate to a private attorney the power and duty which the law imposes upon him, by virtue of his office, in the prosecution of cases before the grand jury?” The court then answered the question posed: “The district attorney is not an ordinary legal attorney. He is £a sworn minister of justice,’ £a quasi judicial officer, ’ representing the commonwealth. The powers and duties imposed by law upon public officials, that require the exercise of judgment and discretion in their performance, cannot be delegated without express legislative authority. It was illegal for Mr. Ordway, as special counsel, to assume the powers and duties of the district attorney. * # * In directing Mr. Ordway to attend before the grand jury, the district attorney undertook, without legislative sanction to delegate to a private individual the most grave official duties imposed upon him as an officer. This conduct was not in accordance with the express provisions of the law, and it was contrary to the spirit and policy of the law. * * # The statute is explicit and mandatory. It leaves no discretion with the court, but declares that under circumstances like these the indictments must be set aside.”
In the instant case however, after the county attorney had attempted to appoint a special prosecutor with the court’s approval, the court issued a nunc pro tunc order making the appointment themselves. The same procedure was followed in State v. Johnson, 55 N. D. 437, 214 N. W. 39, 41. The grand jury was called on December 22,1924, to convene on January 5, 1925. The board of county commissioners adopted a resolution recommending the appointment of a special prosecutor. On December 30, 1924, they recommended the appointment of William Lemke as special investigator and accountant. As soon as the state’s attorney elect took office on January 5, 1925, he approved the resolution. Lemke appeared before the grand jury, advised them, questioned witnesses and performed the duties usually performed by the state’s attorney. The state’s attorney was present, capable of acting and not disqualified, nor had he refused to act. In June 1925, the defendant indicted by the grand jury moved to set aside the indictment under the North Dakota statute like section 94-6601, R. C. M. 1947, and like the New York statute, supra. Thereupon the trial court made an order nunc pro tunc appointing Lemke special counsel to assist the state’s attorney and the grand jury. The North Dakota Supreme Court set aside the indictment on defendant’s motion. The court held: “It is apparent from this record that Mr. Lemke was not the state’s attorney of Burke county, nor his appointed and qualified assistant. Neither is it claimed that he was the Attorney General of the state, or his appointed and qualified assistant. He was not a member of the grand jury, or a witness before it under actual examination. He was solely an assistant prosecutor, appointed by the court to assist the state’s attorney. As such, he was not qualified to appear before the grand jury. But it is claimed by the state, on this appeal, that he was at least a ‘de facto officer.’ As there is no such office as assistant prosecutor, or special prosecutor, the claim fails as to them. He may have been rightfully appointed by the court and fully qualified as a special prosecutor to assist the state’s attorney in the preparation and trial of the case; but that does not qualify him to appear before the grand jury.” People v. Seannell, supra, is in accord, “The sanction of the judge presiding over the court in which the grand jury was serving conferred no authority. ’ ’
Even Indiana, where as we have seen, the court was held to have inherent power to appoint a special prosecutor to perform the prosecuting attorney’s duties with the grand jury has held: “Inquisitorial powers are vested in the office of the prosecutor and in grand juries, and not in judges and courts. The statute authorizes courts to appoint special prosecutors where the regular prosecutor does not attend at the term. In the early cases it was suggested that this power to appoint was inherent in the court, but, in the later cases, this view has been disapproved, and it has been thought that it arises rather by implication from the legislative appointive power expressly conferred. It cannot be doubted that, where it is established that the prosecuting attorney is an interested party, or otherwise clearly incapacitated, the court may appoint an attorney to represent the interests of the state. ' But this may not be done upon mere suspicion or rumor, and upon the mere ex parte motion of the judge, and the decisions disclose that in the eases where the appointment of a special prosecutor was upheld, the regular prosecutor had admitted disqualification or incapacity.” State ex rel. Spencer v. Criminal Court, 214 Ind. 551, 15 N. E. (2d) 1020, 1022, 16 N. E. (2d) 888.
Under Oklahoma statutes similar to sections 94-6601 and 94-6324, indictments were set aside because of the presence of .a special prosecutor before the grand jury. See Hartgraves v. State, 5 Okl. Cr. 266, 114 Pac. 343, 33 L. R. A., N. S., 568, Ann. Cas. 1912D, 180; and State v. Maben, 5 Okl. Cr. 581, 114 Pac. 1122.
By special legislative act the appointment of special prosecutors and their appearance before the grand jury has been authorized in Oklahoma (See State v. Hudson, 44 Okl. Cr. 1, 279 Pac. 921), in North Dakota (State v. Rodman, 57 N. D. 230, 221 N. W. 25) and in New York (People v. Fuller, 156 Misc. 404, 282 N. Y. S. 28). In the absence of such legislative authorization, however, the earlier cases are controlling.
Respondents and amici curiae urge that Raymond et al. v. People, 2 Colo. App. 329, 30 Pac. 504, 511, is authority for the appointment of a special prosecutor and his appearance before the grand jury and should be followed. But Colorado has no such statute as our section 94-6601 providing that the indictment must be set aside if unauthorized persons are before the grand jury. The only basis for setting aside the indictment then would be a showing that the defendants were prejudiced and the case affirmatively states that, “The record fails to disclose that the defendants were in any way prejudiced or injured by the appearance of special counsel before the grand jury. It is neither averred, nor was it claimed in argument, that they were so prejudiced or injured.”
In State v. Tyler, 122 Iowa 125, 97 N. W. 983, 985, where there was a statute like section 94-6601, the court permitted special counsel before the grand jury on the authority of the “inherent power” of the court to employ special counsel as developed in Tull v. State ex rel. Glessner, supra, and on the additional theory that “Attorneys are officers of the court, and the oath taken by them when admitted to practice is quite as full and complete as that of the county attorney. True, they execute no bond, but when acting as special counsel for the state their conduct is subject to review.” Both these propositions have already been discussed and are not the law in this state. Actually in the Tyler Case the county attorney was absent while the grand jury was in session so there was a-necessity for the appointment of a special prosecutor and the case is analogous to Territory v. Harding, supra.
There remains for consideration the early California Case of People v. Magallones, 1860, 15 Cal. 426, decided under the provisions of sections 216 and 278 of California Criminal Practice Act of 1851. These sections subsequently became sections 925 and 995 of the California Penal Code and were adopted by the legislature of this state by the Montana Code of 1871. So that prior to their adoption by Montana the California statutes had been construed by the California Supreme Court and are presumed to be here adopted as so construed. Winnett Pac. Oil Co. v. Wilson, 71 Mont. 250, 229 Pac. 850, and cases there cited.
In the Magallones case there was an 1858 Act of the Calif or-' nia legislature authorizing the board of supervisors of the city and county of San Francisco to appoint an assistant prosecuting district attorney who should also be the prosecuting attorney for the police court. The court construed this section to authorize the assistant prosecuting district attorney to ‘ ‘ assist the Dis trict Attorney in the discharge of the various duties devolving upon him by law. One of these duties is the prosecution of charges before the grand jury, and if the assistant may perform the duty, he must be deemed to be clothed with the powers and privileges necessary for that purpose. While acting for the District Attorney, his acts possess the same validity, and must be regarded in the same light, as if done by that officer in person. ’ ’
The California court found statutory authority for the presence of the assistant before the grand jury just as this court found statutory authority for the presence and participation of the attorney general in State ex rel. Nolan v. District Court, supra. California’s Magullones Case and Montana’s Nolan Case have the same rationale. That the legislature by granting a public official certain duties and certain powers contemplated that he could carry them out. But neither case is authority when a person not a public official and not clothed with statutory authorization tries to take over the power and privileges and duties of the county attorney with or without the sanction of the court or the acquiescence of the county attorney.
If the question of the endorsement of witnesses were the only question involved we would be disposed to return the cause to the trial court with directions to permit the relator to interrogate the special prosecutor or the foreman of the grand jury as to whether or not there were any witnesses who testified before the grand jury and whose names were not endorsed on the indictment.
Concealing the identity of witnesses whose names are required to be revealed to the accused is a return to medievalism and completely foreign to our modern enlightened concepts of justice. The situation is not at all analogous to the use of a patently fictitious name on an information. Identifying witnesses on an information by the fictitious names of “John Doe” or “Richard Roe” is notice to the accused that there are other witnesses not then known to the county attorney but whom the county attorney believes that further investigation will bring to light. In the ease of an indictment the statute requires only that the names of witnesses who testified before the grand jury be endorsed on the indictment. The very fact that the witnesses appeared either voluntarily or by snbpoena and were present before the grand jury indicates that their names were known. In such circumstances it is inexcusable for the state to conceal these witnesses from the accused. The statute requires that their names be endorsed. The history of criminal procedure demonstrates the sound reasons why the accused is entitled to this information. It is a fundamental right of the accused and depriving him of that right is depriving him of a fair trial. But because the prosecution’s brief and oral argument declare there were no such witnesses, it may be that the rights of the accused were not violated. So that even though the question is not properly raised in the pleadings it might be expeditiously settled by hearing evidence and a finding by the trial court.
However, the appearance of the “special prosecutor” before the grand jury when the charges against Porter were under consideration is a more serious matter. “Special Prosecutor” Small had no right to be in the grand jury room. The “special prosecutor” was not a public officer, took no oath, and acquired no authorization from the acquiescence of the county attorney. Under Montana’s statutes the county attorney could not delegate to unofficial counsel his right to advise the grand jury, assist them with their investigations and examine witnesses. Nor did the order of the district judges give the “special prosecutor” any authority. Such authority must be granted by statute.
The duty of the county attorney to advise and meet with the grand jury when one is called is a duty that he must carry out if he is able and not disqualified, regardless of the press of business in his office. The record shows that the county attorney testified that on the 7th day of July 1949, there were no criminal or civil actions pending that required special assistance. Even if there were, the county attorney should have carried out his duties with the grand jury and had the “special prosecutor” appear in the trial where there was statutory authority for his participation.
“If the county attorney was overworked by reason of having two courts in session, engaged in the trial of criminal cases, and a grand jury on his hands at one and the same time, he should have directed his legally constituted assistant to attend the grand jury, or have attended the grand jury himself and performed his duties there. His duties in the grand jury room are the most important duties he has to perform, and those most rigidly enjoined upon him by the law.” Viers v. State, 10 Okl. Cr. 28, 40, 134 Pac. 80, 86.
“It has always been the policy of the legislature, carefully observed by our court, to provide for the strict construction of penal statutes in the interest of the accused. "We think the proper course to pursue in all such matters is well expressed in the ease of McSwane v. State, 200 Ind. 548, 165 N. E. 319, where it is said: ‘It is essential that there shall be a strict compliance with legislative requirements concerning commencement of a criminal action.’ And this court said in State ex rel. Foot v. Dist. Ct., 81 Mont. 495, 501, 263 Pac. 979, 981: ‘The law seeks no unfair advantage over a defendant, but is watchful to see that the proceedings under which his life or liberty is at stake shall be fairly and impartially conducted’.” State ex rel. Juhl v. District Court, 107 Mont. 309, 315, 84 Pac. (2d) 979, 982, 120 A. L. R. 353.
At this stage of the proceedings, before trial, the statute is mandatory. The accused need not show prejudice. The very appearance of an unauthorized person is sufficient to set aside the indictments. U. S. v. Edgerton, D. C. Mont., 80 F. 374. Annotation, 4 A. L. R. (2d) 392, 47 Col. L. Rev. 682, 32 Minn. L. Rev. 504.
The writ will issue directing the district court to set aside the indictments against the relator Porter which were under consid eration when “special prosecutor” Small was present in the grand jury room.
The district court’s order to set aside tbe indictments entered in accordance with this opinion will not bar prosecution for the offenses charged. E. C. M. 1947, sec. 94-6605. The cases will be ordered resubmitted to the county attorney in accordance with section 94-6604, E. C. M. 1947, for the filing of such informations as he believes necessary in the interest of justice or to another grand jury if in the discretion of the district court one is believed to be necessary.
ME. CHIEF JUSTICE ADAIE and ASSOCIATE JUSTICES ANGSTMAN and BOTTOMLY concur.
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JUSTICE ERDMANN
delivered the Opinion of the Court.
David Girard Kelman appeals from the judgment and sentence entered by the Twelfth Judicial District Court, Hill County, on a jury verdict finding him guilty of the felony offense of tampering with public records or information. We affirm.
The issues on appeal are as follows:
1. Was there sufficient evidence to support the jury verdict?
2. Did the District Court err when it denied Kelman’s motion for a new trial based on alleged juror misconduct?
FACTS
Kelman is a principal owner of Big Ten Electronics (BTE), a corporation that manufactures and distributes video gambling equipment. He is also the managing partner of American Music, a business which places gambling machines, jukeboxes, and pinball machines in various establishments throughout Montana. In the fall of 1991, after discovering an opportunity to purchase and remodel a gambling casino located in Havre, Kelman purchased the property and obtained a liquor license for the establishment which was named Boxcars Casino.
A1 Ransome, a Louisiana resident, and his partner, Joe Terrell, formed a Louisiana corporation called Gaming Management, Inc. (GMI) in 1991 to become involved in the video gambling business in Louisiana. They intended to file an application for a Louisiana video gambling license and hoped to become a distributor in Louisiana for video poker machines. Ransome hired two individuals, Dick Odom and John Marley, to assist him in the business venture, and in 1991 Odom and Marley contacted Kelman to discuss opportunities for distributing BTE video gambling machines in Louisiana.
Sometime between September and November 1991, Marley and Odom informed Ransome of the opportunity to become involved in the Boxcars business venture. The proposal was that Ransome’s corporation would put up half the cost of purchasing and remodeling the building and securing the liquor license and in return Kelman and GMI would become 50/50 partners in Boxcars. The conditions to finalizing the partnership were payment of GMI’s share of the capital contribution, the signing of a partnership agreement, and approval by the State of Montana of GMI’s involvement in the project.
In November 1991 Kelman’s attorney, Matt Robinson, presented Ransome with a written partnership agreement. Ransome made two amendments to the agreement, reran it on his computer, and signed it. Ransome testified that when he inquired of Robinson when Kelman would sign the agreement he was told that in order to avoid delay in obtaining the gambling license, the agreement would be signed after the business was open and GMI’s share of the money had been paid. Nevertheless, Ransome testified that “the agreement was there between us, and I trusted the agreement.”
Kelman would periodically send Ransome a list of expenditures related to Boxcars and Ransome would send money covering half of the expenses. On December 24,1991, Ransome sent Kelman a check for $25,000 with a notation stating “reimbursement for Boxcar’s [sic], Havre, Montana Gaming Mgt.” Ransome wire transferred $25,000 to Kelman on January21,1992, $20,000 on March 20,1992, and $20,000 on April 15, 1992, for a total of $90,000. Ransome made no further advances after April 15, 1992. The funds were deposited into a bank account in Kelman’s name at the First Bank in Great Falls. The account was used primarily for the Boxcars venture and Kelman testified that “every penny” sent by Ransome had been spent at Boxcars.
On January 31, 1992, the Gambling Control Division of the Montana Department of Justice (the Division) received an application from Kelman for a gambling operator’s license. The application was prepared and signed by Robinson as Kelman’s attorney. John Flynn, a revenue agent with the Division, reviewed the application and determined that the information provided was incomplete. Flynn was specifically concerned about where the money to finance the business was coming from and whether Kelman was receiving funds from noninstitutional sources.
On March 18, 1992, Flynn and his supervisor met with Kelman and Robinson to discuss the application and the Division’s concern over noninstitutional lenders. On March 23, 1992, the Division received an NIL (noninstitutional loan) report form in which Kelman reported two noninstitutional loans — one from American Music for $60,000 and one from BTE for $75,900. By March 20, 1992, Kelman had received $70,000 from Ransome for the Boxcars project.
At the time the NIL reporting form was submitted, Kelman resubmitted his application for a gambling operator’s license since the original four-page application had been revised into a longer six-page form. The new application was signed by Robinson on Kelman’s behalf. Section E of the application indicated that no other person or entity had any financial interest or derived income from the business. Section N of the application required Kelman to provide creditor information for each outstanding loan and/or financial obligation (institutional/personal/other) obtained or used for operating the business. Kelman reported two loans from the First Bank in Great Falls, one for $60,000 and one for $80,000. No information was provided concerning the $70,000 financial obligation to Ransome.
Flynn sent the application to Rick Losleben, an investigator with the Gambling Investigations Bureau of the Montana Department of Justice, to verify the information. On April 27, 1992, Losleben and Kelman met to discuss the application. By this time, Kelman had received $90,000 from Ransome. Losleben asked Kelman for additional information about the loans to Boxcars from American Music and BTE. After Losleben and Kelman reviewed the application and Kelman made some changes to the document, Kelman signed the application.
During the course of the meeting, Losleben filled out a standard investigation report which Kelman also signed. In Section C of that report, Kelman was asked who had invested in Boxcars. Kelman listed loans from First Bank of Great Falls, American Music, and himself. In Section D Kelman indicated no one had any right to share in the profits or had an obligation for business liabilities relating to the gambling or liquor operations of the business. Section K required Kelman to list the amount and sources of all financing for the business and list all loan agreements. Kelman listed loans received from BTE, American Music, and First Bank of Great Falls. He did not list the $90,000 which by then he had received from Ransome and spent on the Boxcars project. After the meeting Losleben forwarded the information to the Division and a gambling license was issued to Kelman. Boxcars Casino opened for business on June 24', 1992.
During a trip to Montana in August 1992, Ransome discovered that Montana law would prevent a nonresident from becoming a 50/50 partner in the Boxcars operation. Ransome testified that at that point in time he considered the money he had sent to Kelman to be a loan which he expected Kelman to repay once the business was up and running.
In May 1992 Ransome had applied for a video gambling operator’s license in Louisiana and informed Louisiana authorities he had an interest in the Boxcars operation. In September 1992 Losleben received material from a Louisiana state trooper regarding Ransome’s application for the Louisiana license and his stated involvement with Boxcars. In the summer of 1993, Losleben met with Ransome in Baton Rouge to discuss the situation and, as a result, Losleben identified the bank account into which the funds from Ransome to Kelman had been deposited. This was the first information Montana authorities received concerning the funds provided by Ransome for the Boxcars project.
On May 25,1994, Kelman was charged with two counts of tampering with public records or information pursuant to § 45-7-208, MCA, based upon his failure to disclose the funds received from Ransome on his application to the Division. Kelman entered pleas of not guilty to both counts. On November 18, 1994, the District Court granted Kelman’s motion to merge the two counts into one count. On November 28 through 30, 1994, Kelman was tried before a jury which returned a guilty verdict. On December 22, 1994, Kelman filed a motion for a new trial based on alleged juror misconduct. On January 4, 1995, the District Court denied the motion and sentenced Kelman to one year and one day in the Montana State Prison together with a fine of $35,000 plus a ten percent surcharge. The District Court suspended the entire prison sentence. This appeal followed.
ISSUE 1
Was there sufficient evidence to support the jury verdict?
When the issue on appeal in a criminal case is whether there was sufficient evidence to support a jury verdict, the standard of review is whether, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt. State v. Licht (1994), 266 Mont. 123, 131, 879 P.2d 670, 675 (citing State v. Lyons (1992), 254 Mont. 360, 363, 838 P.2d 397, 399).
Section 45-7-208, MCA, defines the offense of tampering with public records or information as follows:
(1) A person commits the offense of tampering with public records or information if he:
(a) knowingly makes a false entry in or false alteration of any record, document, legislative bill or enactment, or thing belonging to or received, issued, or kept by the government for information or record or required by law to be kept by others for information of the government;
(b) makes, presents, or uses any record, document, or thing knowing it to be false and with purpose that it be taken as a genuine part of information or records referred to in subsection (1)(a); or
(c) purposely destroys, conceals, removes, or otherwise impairs the verity or availability of any such record, document, or thing.
(2) A person convicted of the offense of tampering with public records or information shall be imprisoned in the state prison for any term not to exceed 10 years or be fined an amount not to exceed $50,000, or both.
Kelman argues that he acted in good faith and on the advice of his counsel. He maintains that Robinson completed the application form and Losleben completed the investigation report. Thus, Kelman claims he did not knowingly falsify the information contained in the application documents. He claims he made an honest effort to comply with the requirements of the application which he contends were confusing and ambiguous.
Kelman goes on to argue that the funds sent by Ransome were personal in nature and that Flynn and Losleben indicated they were not interested in knowing the source of the funds he was personally investing in the business. Kelman further claims that at the time the application forms were submitted neither his partnership with Ran-some nor a loan agreement had been consummated. Thus, he claims he was put into a “Catch-22” situation in that the funds could not properly be characterized as either an investment in the business or a loan obligation.
The State argues that there was sufficient evidence presented at trial of every element of the crime, including the requisite mental state necessary to convict Kelman. The State contends that the $90,000 Kelman received from Ransome was either an investment in Boxcars or a financial obligation of the business, which in either case should have been reported on the application and investigation report. The State maintains that Kelman’s contention that the loan was “personal” rather than a loan of money for the Boxcars business venture is not credible and raises the inference that he was not telling the truth about how the $90,000 was omitted from the application materials.
The jury was instructed that the existence of a mental state may be inferred from the acts of the accused and the facts and circumstances connected with the offense. Section 45-2-103(3), MCA. The jury was presented with evidence concerning Kelman’s acts and the circumstances surrounding the case.
Although Robinson initially signed the gambling operator application form, he testified that at that point in time he was not aware that Kelman had received money from Ransome for the Boxcars project. When Flynn and his supervisor met with Kelman and Robinson in March 1992, Flynn explained the definition of a noninstitutional source of funding. Flynn sent Kelman a follow-up letter after the meeting emphasizing the importance of disclosing noninstitutional funding. When Kelman completed the NIL form later that month he indicated he had received two noninstitutional loans, one from American Music and one from BTE. He failed to disclose the $70,000 he had already received from Ransome.
By the time Kelman met with Losleben, Kelman had received $90,000 from Ransome. Losleben and Kelman together reviewed the pending application and the investigation report. Losleben filled out the report but Kelman acknowledged he was present at the time and read through the document before he signed it. Both forms clearly indicated above the signature lines that the information was true and correct and that false information could result in denial of the license and criminal prosecution. Nowhere on either the application form or the investigation report did Kelman disclose the funds received from Ransome. At no point during his conversations with Flynn or Losleben did Kelman mention the Louisiana funding for the project.
Kelman claims he did not list the Ransome money because he and Ransome had not yet executed a formal partnership or loan agreement. However, the record indicates that Ransome sent the money to Kelman specifically for the Boxcars project and that the money went directly into an account used to pay for Boxcars’ expenses. Kelman nevertheless made a conscious choice not to disclose to the Division the funds sent by Ransome when disclosure of such noninstitutional funding sources was required.
The jury did not find credible Kelman’s contention that Ransome’s money was neither an investment in Boxcars nor a loan for the business venture. We have stated that the credibility of witnesses and the weight to be assigned to their testimony are to be determined by the trier of fact and disputed questions of fact and credibility will not be disturbed on appeal. State v. Graves (1995), 272 Mont. 451, 457, 901 P.2d 549, 553. The jury decides the facts and who to believe. Graves, 901 P.2d at 553.
We conclude, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt. We hold that sufficient evidence existed to support the jury verdict, and therefore, affirm the District Court on this issue.
ISSUE 2
Did the District Court err when it denied Kelman’s motion for a new trial based on alleged juror misconduct?
We review a district court’s denial of a motion for a new trial to determine whether the district court abused its discretion. State v. Mummey (1994), 264 Mont. 272, 276, 871 P.2d 868, 870. Absent an abuse of discretion the district court’s decision concerning whether or not to grant a motion for a new trial will be affirmed. State v. Hatfield (1995), 269 Mont. 307, 310, 888 P.2d 899, 901.
Kelman moved for a new trial on the ground that the jury was exposed to extraneous prejudicial information. Kelman attached to his motion an affidavit from one of the jurors stating that during deliberations another juror stated that “she believed that David Kelman owned the Playground Bar in Great Falls, Montana.” Kelman alleges that the Playground Bar is a strip bar with a bad reputation. The affiant stated that it appeared the comment was made to make Kelman look bad. The District Court considered the juror affidavit but denied the motion for new trial reasoning that the juror statement was not material to Kelman’s guilt or innocence and that insufficient evidence existed to show that the conviction was related to the alleged remark.
Rule 606(b), M.R.Evid., provides that a juror may not testify as to what occurred during the jury’s deliberations except when the information pertains to: (1) whether extraneous prejudicial information was improperly brought to the jury’s attention; (2) whether any outside influence was brought to bear on any juror; or (3) whether any juror was induced to assent to any verdict or finding by resort to the determination of chance. Kelman argues that the juror statement was extraneous prejudicial information properly received under Rule 606(b)(1), M.R.Evid.
Kelman contends that the initial jury panel vote was 6-6 but that sometime after the comment was made the panel vote was 9-3 in favor of a guilty verdict. He maintains that the statement was inherently prejudicial given the “generally sleazy image” of strip clubs and concludes that “many jurors would assume that a strip club owner is likely to be a person who would intentionally mislead governmental regulatory authorities.” He argues that “the jury herein was comprised almost exclusively of women, likely to have an unfavorable opinion of strip clubs no matter how honest or lawful their operation.” Kelman argues that the jury statement amounted to juror misconduct sufficient to require a new trial.
The State counters that the alleged statement was an internal influence and therefore does not fall within one of the three exceptions set forth in Rule 606(b), M.R.Evid. The State further argues that even if the statement was extraneous information, the information was not prejudicial to Kelman and the District Court did not abuse its discretion in denying the motion for new trial.
In State v. Brogan (1995), 272 Mont. 156, 900 P.2d 284, we held that juror affidavits may not be used to impeach a verdict based upon internal influences on the jury such as a mistake of evidence or misapprehension of the law. Brogan, 900 P.2d at 287 (citing Harry v. Elderkin (1981), 196 Mont. 1, 8, 637 P.2d 809, 813). Where external influence is exerted or external prejudicial information is brought to the jury’s attention, juror affidavits can be the basis of overturning the judgment. Brogan, 900 P.2d at 287. Examples of external influence include a juror’s telephone call obtaining information with regard to previous litigation by the plaintiff, visiting the scene of an accident, or bringing a newspaper article about the trial into the jury room for the jurors to see. Brogan, 900 P.2d at 287 (citing Geiger v. Sherrodd (1993), 262 Mont. 505, 510-11, 866 P.2d 1106, 1109).
We must therefore determine whether the statement was an external or internal influence on the jury. In State v. Hage (1993), 258 Mont. 498, 853 P.2d 1251, among other claims of juror misconduct was the allegation that one juror had informed other jurors that he had personal knowledge that a telephone log was kept of all telephone calls made from the jail. Hage, 853 P.2d at 1256. Citing State v. DeMers (1988), 234 Mont. 273, 762 P.2d 860, we concluded that knowledge and information shared from one juror to another or others is not an extraneous influence. Hage, 853 P.2d at 1257.
Moreover, one of the purposes behind Rule 606(b), M.R.Evid., is to ensure that jurors are able to deliberate free from the frivolous and recurrent invasions of their privacy by disappointed litigants. State v. Maxwell (1982), 198 Mont. 498, 505, 647 P.2d 348, 353. Jurors are expected to bring to the courtroom their own knowledge and experience to aid in their resolution of the case. DeMers, 762 P.2d at 863.
The statement at issue in the present case is a juror’s belief that Kelman owned the Playground Bar. Like the juror’s belief as to the jailhouse telephone log at issue in Hage, we conclude that the statement made in the present case, whether mistaken or not, was an internal influence and within the prohibition of Rule 606(b), M.R.Evid. Even though we hold that the District Court erred in considering the juror affidavit in ruling on Kelman’s motion for a new trial, we conclude the court did not abuse its discretion when it denied the motion. In affirming the District Court on this issue, we rely on our determination that the juror statement was not an external influence subject to the exceptions of Rule 606(b), M.R.Evid.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY and NELSON concur.
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MR. JUSTICE WEBER
delivered the Opinion of the Court.
Claimant Mr. Kimes received disability benefits for a work-related injury to his knee until he entered a settlement agreement with the insurer, Pacific Employers Insurance Company (Pacific). Pacific appeals the ruling of the Workers’ Compensation Court which set aside the settlement. Mr. Kimes cross appeals the discontinuation of his temporary total disability benefits. We affirm.
The issues are:
1. Did the lower court err in setting aside the full and final settlement agreement on the grounds of mutual mistake of fact?
2. Did the lower court err by failing to continue temporary total disability benefits beyond August 20, 1986?
Mr. Kimes injured his knee in 1983 when he fell down steps during his employment as a cook for Charlie’s Family Dining and Donut Shop. The employer accepted liability for benefits and paid compensation to Mr. Kimes. An orthopedic physician repaired a ruptured cruciate ligament in the knee, after which he assigned Mr. Kimes a 30 percent impairment rating to his left knee and leg. The physician felt, however, that Mr. Kimes should be able to return to work as a cook. In January 1985, the parties entered a full and final settlement agreement for a $14,500 lump sum.
In November 1985, Mr. Kimes returned to see his physician because of continuing problems with his left knee. The physician referred Mr. Kimes to a second doctor, who suggested that Mr. Kimes’s problems could be due to a tear of the medial meniscus, which is a cartilage in the knee. Surgery was performed, a tear was found, and the meniscus was removed. The first physician has testified by deposition that X-rays show that the tear in the meniscus was present before the settlement was reached, but that he simply did not detect it.
Mr. Kimes petitioned the Workers’ Compensation Court to reopen his case based on a mutual mistake of medical fact. The court held a hearing at which Mr. Kimes and the attorneys for both sides presented testimony. The depositions taken of the physician both before and after the settlement were also available to the court. The court set aside the settlement agreement and ruled that the employer is entitled to a credit for the settlement amount.
I
Did the lower court err in setting aside the full and final settlement agreement on the grounds of mutual mistake of fact?
As this Court discussed in Kienas v. Peterson (Mont. 1980), [191 Mont. 325,] 624 P.2d 1, 37 St.Rep. 1747, general contract law gives courts the right to reopen a compromise settlement when there has been a non-negligent mutual mistake of material fact. In Kienas, the claimant suffered an injury to his back. After a full and final settlement was made, doctors concluded that the injury had also aggravated claimant’s previous condition of cerebral palsy, rendering him totally disabled. Ruling that there was a mutual mistake of material fact, this Court set aside the settlement agreement.
In Weldele v. Medley Development (Mont. 1987), [227 Mont. 257,] 738 P.2d 1281, 44 St.Rep. 1062, the claimant had suffered an industrial shoulder injury. At the time full and final settlement was made, the injury had been diagnosed as a rotator cuff tear and a healed carpal tunnel syndrome. After the settlement, the claimant was diagnosed as having thoracic outlet syndrome in the shoulder. The physician testified that it was more probable than not that the claimant’s work-related injury was the cause. This Court affirmed the lower court’s conclusion that those circumstances constituted a mistake of fact upon which the settlement could be reopened.
In contrast, where findings in medical reports following a settlement are consistent with those prior to the settlement, where the impairment rating is substantially unchanged, and where the claimant is in much the same condition as at the time of settlement, there is no mutual mistake of fact justifying reopening a settlement. Sollie v. Peavey Co. (Mont. 1984), [212 Mont. 197,] 686 P.2d 920, 41 St.Rep. 1684. Variance in the symptom level, where claimant knew this level would vary, is not enough. Sollie, 686 P.2d at 924.
Pacific argues that there was no mutual mistake of fact here. It asserts that Mr. Kimes and his attorney were aware at the time of the settlement that there were potentially permanent problems with the knee and that those problems were related to Mr. Kimes’s industrial accident. However, not only has Mr. Kimes’s disability rating increased as a result of the post-settlement surgery to remove the torn meniscus, but his prognosis now includes probable degenerative changes in his knee joint. He now requires pain medication and has been advised not to return to his former line of work as a cook. The X-rays show that Mr. Kimes had a tear in his medial meniscus at the time of settlement, and it is undisputed that this was unknown to the parties when settlement was made.
While the dissent argues that the Workers’ Compensation Court does not have statutory authority to set aside this full and final compromise agreement, the parties did not raise that argument. Further, this Court is not so limited where there has been mutual mistake. We conclude that the uncontradicted medical evidence establishes a material mistake of fact relating to both the nature and extent of Mr. Kimes’s injury. We hold that the full and final settlement entered in this case may be reopened on the basis of this material mistake of fact.
II
Did the lower court err by failing to continue temporary total disability benefits beyond August 20, 1986?
The Workers’ Compensation Court terminated Mr. Kimes’s temporary total disability benefits as of the date the physician, by deposition, stated that Mr. Kimes had reached his maximum medical recovery. Mr. Kimes argues that he is entitled to an award of continued temporary total disability benefits until he reaches a point at which he can return to the job market.
Under the statutory scheme in effect at the time of Mr. Kimes’s injury, temporary total disability did not exist past the time of maximum healing. Section 39-71-116(19), MCA (1983), provided:
“ ‘Temporary total disability’ means a condition resulting from an injury as defined in this chapter that results in total loss of wages and exists until the injured worker is as far restored as the permanent character of the injuries will permit. Disability shall be supported by a preponderance of medical evidence. [Emphasis supplied.]”
The physician testified on August 20, 1986, that Mr. Kimes had reached maximum healing. We conclude that the lower court was correct in terminating temporary total disability benefits as of August 20, 1986. This does not in any way constitute a ruling on Mr. Kimes’s right to permanent total or permanent partial disability benefits.
Affirmed as to the result reached.
MR. JUSTICES HARRISON, SHEEHY, McDONOUGH and HUNT concur.
|
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MR. JUSTICE DALY
delivered the opinion of the Court.
This appeal arises from an action filed by three physicians and the Sisters of Charity of Providence of Montana, who operate the Columbus Hospital in Great Falls, Montana, against Glacier County, Montana, and the Glacier County Welfare Board on their claims for medical services and hospitalization furnished to Mrs. Elizabeth Austin during 1969 and 1970. Plaintiffs allege Mrs. Austin was a medically indigent resident of Galcier County and the County was required to pay her medical and hospital bills. Glacier County denied any obligation to pay these claims.
The Sisters of Charity and the three physicians moved for summary judgment. The trial court denied their motion on the basis there was a question as to when the respective claims against Glacier County accrued. After further discovery the Sisters of Charity filed another motion for summary judgment. The trial court granted this motion and at the same time dismissed the claims of the three physicians. A summary judgment in favor of the Sisters of Charity was entered. Glacier County appeals from the judgment.
Three issues are presented for review:
1. Whether the trial court erred in holding that as a matter of law, Mrs. Austin was medically indigent?
2. Whether the trial court erred in holding the Sisters of Charity of Providence of Montana is a real party in interest?
3. Whether the trial court erred in holding that the statute of limitations did not bar recovery?
At approximately 2 a.m. on December 4, 1969, Kenneth Austin discovered his wife Elizabeth lying unconscious on the bathroom floor in the family home in Cut Bank, Montana. Comatose, she was taken in an ambulance to Glacier Memorial Hospital in Cut Bank.
At the time she became ill Mrs. Austin was 46 years old. She was married, the mother of five children and a fulltime housewife. She and her husband had made their home in Cut Bank for approximately 25 years. Although the exact percentage was never established it was agreed that Mrs. Austin is of partial Cree Indian ancestry.
After hospitalization for approximately one week in Cut Bank Mrs. Austin improved to the extent that the attending physicians thought it would not be detrimental to transfer her. She was taken by ambulance to the Public Health Service Hospital in Browning, Montana. She remained there four days. On December 15, 1969 she was transferred by ambulance to the Columbus Hospital at Great Falls, Montana, operated by the Sisters of Charity. Mrs. Austin was hospitalized at Columbus Hospital from December 15 to December 19, 1969 while a neurological specialist and other physicians performed tests to make a detailed diagnosis of her condition. The facilities necessary to conduct these tests were not available in either Cut Bank or Browning. The neurologist diagnosed a subarachnoid hemorrhage from a rupture of an aneurysm arising from the right carotid artery siphon. Mrs. Austin had suffered a stroke.
Following the tests Mrs. Austin was returned to the Public Health Service Hospital in Browning. She remained there for two weeks. A review of the Columbus Hospital tests by the examining physicians indicated surgery was necessary. Mrs. Austin was read mitted to Columbus Hospital on January 5, 1970. Dr. Gaston Syrenne, a neurosurgeon, operated twice on her vascular system to correct the damage caused by the ruptured aneurysm. The type of medical services furnished by Dr. Syrenne were not available in either Browning or Cut Bank, Montana. The closest possible location where the surgery could be performed in Great Falls, Montana. Mrs. Austin remained hospitalized at Columbus Hospital through March 7, 1970. There is no question but that this period of hospitalization was usual for this type of procedure and there is no evidence to indicate an excessive recovery time. During her hospitalization at Columbus Hospital Mrs. Austin incurred a bill of $6,444.45.
Mrs. Austin returned to the Public Health Services Hospital in Browning and eventually to the family home in Cut Bank. She remains a semi-invalid with about 60 percent use of her limbs.
At the time of Mrs. Austin’s stroke and afterwards the sole support for the Austin family was provided by her husband Kenneth Austin who worked as a custodian at Cut Bank High School. He was 59 years old at the time Mrs. Austin fell ill. His average take home pay was under $420 per month. Four of the five Austin children were living at home. The only property of substance owned by the Austins was the family home. They had no savings or investments and were without medical insurance. Consumer purchases were paid for by installment financing. Mr. Austin drove a 1964 Buick worth approximately $500. The family appeared to be living on a day-to-day basis.
According to Glacier County Kenneth Austin applied to the Glacier County Welfare Board for medical assistance on January 23, 1970, during the time’Elizabeth Austin was hospitalized in Great Falls. His application was rejected by Glacier County because the family income was “above welfare standards”. Glacier County asserts its Welfare Board denied Austin’s application on July 8, 1970.
Columbus Hospital submitted a claim of $6,444.65 directly to the Glacier County Commissioners for services rendered to Elizabeth Austin. Glacier County rejected this claim on January 11, 1971. On July 7, 1971, this action was commenced.
In this action Glacier County does not try to directly disavow its obligation. However, the County seeks to avoid payment of this claim under the assertion that Elizabeth Austin was not in fact an indigent. Also, Glacier County argues that in “non-emergency” situations, Glacier County has the right to make contractual arrangements outside the county in order to satisfy its duty and that in the absence of proof of emergency or of a contract the claim of the Sisters of Chairty must fail. The County further argues the claim of a hospital is wholly derivative from that of the indigent recipient of care and that (1)the hospital is not the real party in interest, and (2) the County can assert procedural defenses personal to the recipient against the hospital.
The duty of Montana counties to provide resident indigents with medical aid and hospitalization exists by virtue of an express command of the legislature. Section 71-308, R.C.M.1947, stated before amendment in 1977:
“Medical aid and hospitalization for persons unable to provide such necessities for themselves are hereby declared to be the legal and financial duty and responsibility of the board of county commissioners * *
Issue 1 relates to the deposition of Kenneth Austin which established that the Austin family was unable to pay the hospital bills incurred as a result of Elizabeth Austin’s stroke. Glacier County denied the Austin welfare application because Kenneth Austin’s income was above welfare standards. This Court has declared that such administrative standards cannot be applied in a situation where to do so would be “unreasonable”. St. Patrick Hospital v. Powell County, (1970), 156 Mont. 153, 159, 477 P.2d 340, 343. in determining medical inindigency under section 71-308, R.C.M.1947, this Court stated in State ex rel. Hendrickson v. Gallatin County, (1974), 165 Mont. 135, 140, 141, 526 P.2d 354, 357:
“ ‘ * * * we do not understand the legislative intent to be that in order for a person to be an “indigent person” within the meaning thereof to receive medical assistance there must be a total lack of resources. Rather, we believe the legislative intent was to include those persons who do not have the present or future hope of resources sufficient to pay for all [of] the medical and hospital services required in emergency instances.’”
In St. Patrick Hospital v. Powell County, supra, it was recognized that each case of nonwelfare medical indigency must be determined on its own facts. In the instant case, it is clear from the record that the Austins were indigent by the standard announced by this Court. As a partially paralyzed stroke victim Elizabeth Austin could not be classified as employable. As a school custodian Mr. Austin brings home barely enough income to meet expenses on a day-to-day basis. Mr. Austin at the time of his wife’s illness was 59 years of age. There is no basis upon which to assume that his income would increase in his remaining productive years, much less to a level required to pay this large debt.
The family had no health insurance or savings. While the family did own its home and if it were to be sold to raise the money the cost of obtaining alternate housing would be far in excess of current expenses for. taxes and upkeep and beyond the limit of the family resources. The trial court did not err in holding as a matter of law that the Austins were medically indigent.
Glacier County also argues that Elizabeth Austin cannot be considered indigent because she failed to have the federal government pay her medical bills, as she is a Cree Indian who qualifies for Indian medical benefits. Neither case law nor section 71-308, R.C.M.1947, requires such an undertaking. The Montana legislature has imposed an obligation upon counties to provide medical and hospital aid to indigents. The fact that there may be collateral sources which are liable should not be considered in determining indigency unless it is demonstrated that such collateral source is currently available for medical expenses. Glacier County offered no evidence that indicated the present availability of federal funds to pay Austin’s medical bills.
In Issue 2, Glacier County contends that the right of a hospital to bring a claim under section 71-308 is authorized only in emergency situations and accordingly the hospital in this case is not the real party in interest. It argues that non-emergency situations its duty under section 71-308, R.C.M.1947, is limited by contractual arrangement between the County and the hospital. We cannot agree with the County’s assertion that this was not an emergency situation. It is undisputed that while Mrs. Austin was at the Public Health Service Hospital in Browning, the facility did not have the diagnostic equipment to determine the genesis of her symptoms, which appeared serious. Hence, she-was transported to Great Falls for diagnostic tests. Those tests disclosed Mrs. Austin sustained a serious stroke which left her partially paralyzed. Although her transfer to Columbus Hospital was 11 days after her stroke, Glacier County produced no medical evidence that such transfer to Great Falls was not an emergency.
Even if we were to accept Glacier County’s contention that Elizabeth Austin was not an emergency case, the argument still lacks merit. In the instant case, Glacier County asserts that it should have had the right to negotiate competent medical service at reasonable cost to the county. Mrs. Austin is not required to wait until the County decides to which hospital she should be transferred. This argument has little persuasion when considered in light of the fact that Glacier County has consistently denied Mrs. Austin’s status as an indigent. While Kenneth Austin did apply to the Glacier County Welfare Board during the period Mrs. Austin was hospitalized in Great Falls, Glacier County did not reject the application until July 1970, some four months after Elizabeth’s discharge from the hospital. Following the County’s reasoning to its logical conclusion Kenneth Austin would have had to pursue his welfare application through the administrative process and thereafter through the courts to have Glacier County accept Elizabeth Austin as indigent; once accepted Glacier County would then have the right to make contractural arrangements for her care and at that point, Mrs. Austin would have been eligible for treatment under section 71-308, R.C.M.1947. If this were the case, sec tion 71-308 would be of little benefit to Elizabeth Austin or other medically indigent persons in need of immediate care.
County commissioners do not have the right to make medical decisions. Once Elizabeth Austin fell ill, how she would be cared for could only be resolved by physicians. Accordingly, the physicians who treated Mrs. Austin determined the closest place at which adequate and necessary care could properly be provided was the Columbus Hospital in Great Falls. The trial court was correct in holding that the Sisters of Charity of Providence is a real party in interest.
In issue 3, Glacier County argues the Sisters of Charity’s rights are wholly derivative from that of the patient. It asserts the Austins made no claim for medical assistance within the six month statute of limitations and therefore the Sisters of Charity claim is also barred by the statute.
Such as assertion is not valid. As stated in Issue 2, the Sisters of Charity is a real party in interest and its claim was not a derivative claim from that of the patient. Section 93-2609(2), R.C.M.1947, governs this action; a six month statute of limitation applies. Glacier County admits the Sisters of Charity presented a specific claim for $6,444.65 to the County. This claim was rejected by the County on January 11, 1971. The complaint in this action was filed on July 7, 1971, within six months of the denial of the hospital’s claim. The Sisters of Charity complied with section 93-2609(2).
Glacier County has failed to produce evidence that would create a genuine issue of fact of law; the summary judgment entered by the trial court is affirmed.
.MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, SHEA and SHEEHY concur.
|
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MR. CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Defendants, prime contractor and its surety on a public works project, appeal summary judgment in favor of plaintiff, a materialman and supplier to a subcontractor, entered in the Fourteenth Judicial District, Musselshell County, on December 28, 1984. The District Court determined that as a matter of law plaintiff was entitled to summary judgment in the amount of $47,639, plus interest at 6 percent and costs.
We affirm. We hold that White & McNeil Excavating, Inc., as the prime contractor, was bonded by Transamerica Insurance Company to assure payment to its materialman, Robintech, under the public works bonding provisions in Part Two of Title 18, Chapter 2, MCA. We hold that White & McNeil had adequate legal notice on Robintech’s claim, and Robintech was entitled to payment under the contract and under the bonding statutes.
Both parties moved for summary judgment claiming that the material facts were undisputed. For its first issue on appeal, White & McNeil challenges the court’s conclusion that Robintech was a supplier or a materialman to a subcontractor, alleging that Waterworks Supplies Company was a materialman and not a subcontractor. Therefore, appellant urges this Court, Robintech supplied a materialman and is not protected by the bond. For its second issue, appellant alleges error in the court’s ruling that Robintech complied with Section 18-2-206, MCA, by mailing invoices but failing to send notice by certified mail of any claim upon the bond.
The facts material to the summary judgment follow. On June 9, 1982, the City of Roundup, Montana, entered into a public works contract with White & McNeil Excavating, Inc., for the construction of water main improvements to be incorporated into the city water system. White & McNeil, prime contractors on the project, executed a payment bond with co-defendant Transamerica Insurance Company as surety.
The payment bond contained the following language:
“NOW, THEREFORE, if the PRINCIPAL shall promptly make payment to all persons, firms, and corporations furnishing materials for or performing labor in the prosecution of the WORK provided for in such contract, and any authorized extension or modification thereof, including all amounts due for materials, lubricants, oil, gasoline, coal and coke, repairs on machinery, equipment and tools, consumed or used in connection with the construction of such WORK, .... [Emphasis added.]”
A further provision limited the claimants entitled to coverage:
“PROVIDED, that beneficiaries or claimants hereunder shall be limited to the SUBCONTRACTORS, and persons, firms and corporations having a direct contract with the PRINCIPAL or its SUBCONTRACTORS.”
The general contract defined a “subcontractor” as “an individual, firm or corporation having a contract with the CONTRACTOR or with any other SUBCONTRACTOR for the performance of the WORK at the site.” “Work” was defined in the contract as “[a]ll labor necessary to produce the construction required by the CONTRACT DOCUMENTS, and all materials and equipment incorporated or to be incorporated in the PROJECT.” (Emphasis added.)
White & McNeil contracted with Waterworks Supplies Company as the sole direct supplier of pipe and all materials for the project, and Waterworks in turn contracted with Robintech to provide the pipe. Steve McNeil testified at his deposition that he knew when they “were quoted the job, that it was Robintech pipe.” Robintech shipped its pipe directly to the project and a representative of White & McNeil signed for the pipe as consignee. The packing lists and receipts bore the Robintech letterhead. Before the project completion, Betty White, secretary of the prime contractor, realized that Waterworks was not paying for the Robintech pipe, so she withheld payments to Waterworks.
The City Council of Roundup met and approved final payment to White & McNeil on or about August 3, 1982. On August 30, 1982, Robintech mailed a notice to the City of its claim against the bond executed between White & McNeil and Transamerica on the project, pursuant to notice requirements for a right of action, Section 18-2-204, MCA. Defendants admitted that copies of this notice were mailed to them the next day, August 31, 1982.
I
Appellant contends that Waterworks Supplies was a materialman, not a subcontractor, to White & McNeil, and that Robintech supplied one who was not a subcontractor. Arguing that Robintech did not have a direct contract with the principal or a subcontractor, appellant claims that Robintech did not qualify for protection under the limiting provision.
We find no merit in appellant’s contentions. Waterworks had a contract with the principal, White & McNeil, to provide materials, and Robintech had a contract with Waterworks to provide pipe. Robintech was covered under the limiting provision as well as the general bond. Furthermore, Robintech was protected under the bonding statutes for public works projects, Section 18-2-201, et seq., as a materialman providing materials for the prosecution of work under the contract.
First, appellant incorrectly argues that Waterworks was only a supplier and not a subcontractor, apparently from a misconception that a subcontractor must perform labor at the work site. White & McNeil contracted with Waterworks to provide all its pipe for the public works project, knowing that the pipe would be supplied by Robintech. Under the general contract, work encompassed both labor and materials incorporated into the project. Waterworks was clearly a subcontractor on the project. The bond assured payment to a corporation having a direct contract with a subcontractor. Robintech had such a contract and qualified under the limiting provision of the bond. Therefore, the prime contractor or its surety was liable for payment.
Second, Robintech is entitled to claim on the bond under Montana’s public works bonding statutes, Section 18-2-201 et seq., MCA, provided that it gave adequate legal notice under Section 18-2-206, MCA.
“Bonding requirements. (1) Whenever . . . any public body shall contract with any person or corporation to do any work for the . . . city, . . . such . . . body shall require the corporation, person, or persons with whom such contract is made to make, execute, and deliver to such . . . body a good and sufficient bond with ... a licensed surety company as surety, conditioned that such corporation, person, or persons shall:”
“(a) faithfully perform all of the provisions of such contract;
“(b) pay all laborers, mechanics, subcontractors, and materialmen; and
“(c) pay all persons who shall supply such corporation, person or persons, or subcontractors with provisions, provender, material, or supplies for the carrying on of such work.” [Section 18-2-201, MCA. Emphasis added.]
By statute, the bond assures payment to materialmen and persons supplying the corporation or subcontractor with material. Regardless of its contract with Waterworks, Robintech supplied White & McNeil which benefited in fulfilling its contractual promise. When the City of Roundup accepted the project as completed, it acknowledged that all of the provisions of the contract were performed, including the installation of the Robintech pipe. Robintech supplied the corporation of White & McNeil the material for the project, White & McNeil knowingly received the benefit, and its surety company, Transamerica, has guaranteed payment.
II
In claiming failure to comply with the notice required under Section 18-2-206, MCA, appellant next makes an argument of form over substance already decided in favor of respondent’s position in Treasure State Industries v. Leigland (1968), 151 Mont. 288, 443 P.2d 22. Appellant contends that Robintech was only entitled to proceed against the contractor if it had strictly complied with the provisions for notice to the contractor concerning subcontractor under Section 18-2-206, MCA, sending a certified letter within thirty days to the contractor, which is a separate requirement from Section 18-2-204, MCA. We have held that statutory notice was waived and the notice provisions were satisfied if the prime contractor had actual knowledge that materials were being furnished for the project by a particular supplier and consented thereto. Treasure State Industries v. Leigland (1968), 151 Mont. 288, 297, 443 P.2d 22, 27. To require more notice than White & McNeil had from the beginning in contract discussions and periodically from direct shipments and packing lists and receipts would, as in Treasure State, “be to require an idle act and to defeat its claim on this ground would deny it justice.” Treasure State, 443 P.2d at 27.
We find appellant’s argument particularly strained in requiring all or nothing notice by certified mail, otherwise foreclosing respondent’s claim. Section 18-2-206(1), MCA, provides that every person, firm or corporation furnishing materials to be used in the work for the [city] shall “deliver or send by certified mail to the contractor a notice in writing stating in substance and effect that [it has provided materials] with the name of the subcontractor or agent ordering or to whom the same is furnished and [the contractor or his bond will be held for the same].” (Emphasis added.) The accompanying packing lists and receipts were written notice stating in substance that Robintech provided materials, and White & McNeil’s duty under the provisions of this part to its materialmen sufficed to hold the contractor and his bond liable to pay. Robintech provided the materials to White & McNeil for its project, qualifying under the bonding statute, Section 18-2-201, MCA. We therefore conclude that the requirements for notice in Treasure State Industries v. Leigland, supra, are satisfied.
Affirmed.
MR. JUSTICES HARRISON, WEBER, HUNT and GULBRANDSON concur.
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ME. CHIEF JUSTICE ADAIE:
This is a suit for specific performance resulting in decree for defendants and plaintiff appeals.
The suit is grounded on a contract reading:
“LEASE AND OPTION TO PUECHASE
“This agreement, made and entered into this 24th day of February, -1934, by and between Eobert L. Morton, a single man, of Clarion, County of Wright, State of Iowa, hereinafter called Lessor; and'Walter McLaren of Dayton, Montgomery County, Ohio, hereinafter called Lessee:
“Witnesseth that the said Lessor, for and in consideration of One Dollar ($1) to him in hand paid, the receipt of which is hereby acknowledged, and in consideration of the covenants and agreements hereinafter contained to be by said Lessee kept and performed, does hereby lease, let and demise unto the said Lessee the following described quartz mining premises, situated in the New World Mining District, County of Park, State of Montana, to-wit:
“That certain unpatented Lode Mining Claim named ‘Melissa’ situated in the aforesaid mining district, together with the appurtenances, water and water rights, timber and timber rights and all property of every kind and nature belonging thereto or connected therewith, with the right to mine, extract and remove ore and/or metals from the leased premises and to prospect for ore and/or minerals thereon and therein, on the terms and conditions hereinafter stated. And said Lessor covenants and agrees with the said Lessee that said Lessee shall have quiet and peaceable possession of said leased premises during the continuance of this Lease and Option to Purchase.
“To have and to hold the same unto said Lessee until the ground is- worked out or until said Lessee shall voluntarily surrender the said leased premises and this agreement, unless sooner forfeited or determined through violation of any agreement or covenant hereinafter contained by the said Lessee made.
“The said Lessee, in consideration of said lease of said premises does hereby covenant to and with the said Lessor as follows:
“1. To enter upon and take possession of said premises and hold the same under this Lease and Option to Purchase.
“2. To work the same in a miner-like manner so as to take out the greatest amount of ore possible with the crew and equipment used for the work.
“3. To allow said Lessor or his authorized agent to inspect the premises and the work being done at any time which will not interfere with the work then being carried on.
“4. To pay to said Lessor a royalty of ten per cent (10 %) of all net mill or smelter returns from ore shipped from said premises, all such royalty payments to be deducted from the hereinafter mentioned purchase price for said property.
“And in consideration of the acceptance of the foregoing lease and the expenditures to be made thereunder and the faithful keeping of the covenants thereof, the said Lessee shall have the right to purchase the said demised premises for the sum of Four Thousand Dollars ($4,000) payable as follows:
“Two Thousand Dollars ($2,000) on or before One Year after said Lessor fully clears title to said premises so that he can furnish good and sufficient title clear from all incumbrances or adverse claims and Two Thousands Dollars on or before One Year after said first payment of Two thousand Dollars becomes due, it is understood and agreed that any amounts of money paid as royalties hereunder shall be deducted from any payment to become due.
“It is understood and agreed by and between the parties hereto that in the event this Lease and Option to Purchase is forfeited or determined for any reason, said Lessee shall have the right to remove any and all machinery and equipment which he may have installed on said premises.
“In witness whereof, the parties hereto have hereunto set their hands and seals the day and year first hereinbefore written.
“Robert L. Morton,
By Dan G. Ross,
Attorney in fact.”
The above contract was acknowledged by Dan G. Ross, February 24,1934, by Walter McLaren, March 3, 1934, and, on the latter date, filed for record and duly recorded in the office of the county clerk and recorder of Park county; Montana.
Immediately upon the execution of the above contract, the named lessee entered into possession of the demised property and commenced mining operations and work thereon and prior to 1935 a tunnel was dug on the described mining claim 4 feet in width, 5% feet in height and approximately 50 feet in length.
July 6, 1934, Robert L. Morton as plaintiff commenced in the district court of Park county, Montana, an action to quiet title to the property described in the above contract but such action was pending and undetermined at the time of the trial of the instant suit and title to said premises has not been cleared.
April 10, 1935, Walter McLaren, the lessee, sold and, in writing, assigned to plaintiff, the McLaren Gold Mines Company, a Delaware corporation, all of his right, title and interest in the above contract. Such assignment was thereafter filed for record and duly recorded in the office of the county clerk and recorder of Park county, Montana.
Upon the execution of the assignment, the plaintiff entered into possession of the demised property and has since expended considerable sums of money and done much work in exploring, developing and mining the property, which includes work in engineering, geology, mapping, diamond drilling and the digging of shafts and tunnels.
In the year 1938, plaintiff commenced digging a second tunnel on the described claim and this work was continued during the years 1939 and 1940. At the time of the trial the tunnel was 1,220 feet in length, the first 550 feet thereof being on the demised mining claim from which tunnel two raises were excavated, the first being 220 feet, and the second 400 feet from the portal of the tunnel. The first raise was 40 feet and the second 70 feet in height. Approximately 400 feet from the portal a 4x5 foot shaft was sunk in the floor of the second tunnel to a depth of 20 feet. Approximately 300 feet from the portal a crosscut was made extending 20 feet on either side of the tunnel. In prospecting for ore on the property, plaintiff drilled seven diamond drill holes varying from 30 feet to 225 feet in depth and did core drilling aggregating 753% feet. The costs of the crosscuts, raises and shaft were not available at the trial but exclusive of such outlays, the plaintiff expended approximately $13,000.00 for the work done by it on the described mining claim.
While mineral bearing rock was encountered, the exploration and development work produced no sufficiently high grade ores to be of commercial value.
The plaintiff and its predecessor in interest have been in the complete, undisputed and peaceable possession of the described mining claim continuously since February 24, 1934, during which time they have done the required annual assessment work and otherwise fully complied with the several Acts of Congress suspending such work and have filed in the office of the county clerk and recorder of Park county, Montana, proper affidavits and notices of intention to continue to hold the claim.
The trial court found and the evidence clearly shows that by reason of the explorations made by plaintiff upon the demised mining claim to find ores of commercial value and the doing by it of the annual assessment work, plaintiff has performed all of the obligations imposed upon it by virtue of the contract.
After the assignment of the contract to plaintiff and while it was operating the property, Robert L. Morton died intestate at his home in Clarion, Iowa, and thereafter his estate in Park county, Montana, was administered by an administrator appointed by the district court of such county. During the course of such administration, A. Roy Morton, son and heir at law of Robert L. Morton, died testate and the defendant Grace Morton was duly appointed and qualified as executrix of the will of A. Roy Morton, deceased, and thereafter on December 3, 1946, by decree of the above district court, the property described in the lease and option to purchase was distributed to the defendant Grace Morton as executrix of the last will of A. Roy Morton, deceased. The executrix, sojourning in the state of Washington and being a nonresident of the state of Montana, appointed the defendant T. C. White as her attorney in fact, empowering him to institute or defend any and all legal proceedings and law suits in which she was interested or a party.
Following the demise of Robert L. Morton, plaintiff, sought to exercise “the right to purchase the demised premises for the sum of Four Thousand Dollars ($4,000)” as is expressly provided in the contract but the administrator declined to accept the consideration of $4,000 or to convey the demised property to plaintiff whereupon plaintiff filed in the probate proceeding pending in the district court of Park county, a petition for an order for the specific performance of the contract, which petition the court on August 13, 1946, ordered dismissed without prejudice but therein expressly granting plaintiff leave to commence this action.
Plaintiff expressly waived the requirement that title be quieted by the lessor.
The cause was tried to the court sitting without a jury.
On September 24, 1947, the trial court made and entered its findings of fact and conclusions of law. The findings are in plaintiff’s favor but in its second conclusion of law the court concluded that a power of attorney executed October 3, 1933, by Robert L. Morton appointing Dan G. Ross as his attorney in fact “does not confer authority upon the attorney in fact, Dan G. Ross to grant an option of sale on said mining claim. ’ ’ Where fore the trial court entered judgment for defendants from which plaintiff has appealed.
The lease and option to purchase was executed by virtue of the following power of attorney, viz:
“POWER OF ATTORNEY
“Know all men by these presents, That I, Robert L. Morton, a single man, of Clarion, County of Wright, State of Iowa, do hereby appoint Dan G. Ross, of Park County, State of Montana, my attorney for me, and in my name, place and stead, to bargain, transact and agree for, purchase, receive and take rents, hereditaments and accept the seizin and possession of all lands and all deeds and other assurances and to lease, let, demise, bargain, sell, release, convey, mortgage and hypothecate lands, tenements and hereditaments upon such terms and conditions and under such covenants as he shall think fit and also for me and in my name, place and stead and as my act and deed to locate, lease, sell and do all other things necessary in connection with and in compliance with the laws of the United States Government and the State of Montana, in locating and perfecting title to mines and to preserve, manage, sell or dispose of, mortgage, lease, hypothecate or otherwise transfer any and all of said mines, as well as any other mines that I may now be the owner of or have an interest in in the State of Montana, including the right to commence any suit in court and prosecute the same through to judgment that my said attorney deems necessary in order to protect my interests, and also to locate mill sites, townsites, mining claims, and water rights and take all necessary legal steps and proceedings to accept the same and manage, work, sell, mortgage, lease or otherwise dispose of any and all of them to our best advantage, giving and granting unto my said attorney, Dan G. Ross, full power and authority to do and perform all and every act and thing whatsoever requisite, necessary, or proper to be done in and about the premises, as fully to all intents and purposes as I might or could do, if personally present, hereby ratifying and confirming all that my said attorney shall lawfully do or cause to be done by virtue hereof.
“In witness whereof, I have hereunto set my hand and seal this 3rd day of October, A. D., 1933.
“Robert L. Morton (Seal) ”
(Acimowledged October 3, 1933.)
. The above power of attorney was filed for record and duly recorded in the office of the county clerk and recorder of Park county, Montana, on the same date the lease and option to Mc-Laren was filed for record.
The question presented:
Is the above power of attorney sufficiently broad to authorize the execution of the lease and option to purchase the “Melissa” unpatented quartz lode mining claim?
A power of attorney is nothing more than an instrument in writing authorizing another to act as one’s agent. The person holding a power of attorney is known as an “attorney in fact” thus distinguishing him from an attorney at law.
The rules governing the interpretation of written instruments generally govern the construction of powers of attorney. First and foremost the intention of the parties as it existed at the time the powers were granted is to be ascertained. Next and when ascertained, that intention is to be given effect. The intention is to be ascertained from the writing alone, if possible. The words used in the writing are to be understood in their ordinary and popular sense, rather than according to their strict legal meaning, unless used by the parties in a technical sense, or unless a special meaning is given to them by usage, in which ease the latter must be followed. Technical words are to be interpreted as usually understood by persons in the profession or business.to which they relate, unless clearly used in a different sense. The whole of the writing is to be taken together, so as to give effect to every part, if reasonably practicable, each clause helping to interpret the other.
While the powers granted must be strictly pursued by the agent, yet where the language permits, a power must be construed so as to carry out the purposes of the appointment. Holladay v.-Daily, 19 Wall. 606, 22 L. Ed. 187. Where the words used are ambiguous in themselves they are to be taken most strictly against the principal and the agent in his dealings with a third person may bind his principal in accordance with usage or by any construction of the ambiguous words that is reasonable for the grant of powers is not to be frittered away by very nice and metaphysical distinctions when the general, tenor of the instrument is in favor of what was done, under, the power and when the principal has reaped the benefit of it. Le Roy v. Beard, 8 How. 451, 12 L. Ed. 1151. A strained interpretation of the powers granted should never be given. ......
The power of attorney and the lease and option to purchase have to do with mining in Montana, the “Treasure State,” whose official state flag and seal both bear the state motto of “Oro T Plata” or “Gold and Silver.” This state produces more than 50 per cent of all the nation’s copper output, it ranks second in silver production and it also produces much gold, lead, manganese ore, petroleum and natural gas. In the state, and within the county of Park, are many mining claims and mines; some patented, many unpatented, some quartz lode claims, other placer claims.
The power of attorney executed, by Robert L. Morton, appointing Dan G. Ross as his attorney in fact, manifests an intention on the part of Morton residing without the state but operating through his agent Ross, residing in Park county, Montana, of relying upon such agent’s knowledge and experience, and through such agent, of acquiring, owning, protecting, financing, working, managing, developing and disposing of mines and mining property located in Montana.
The power of attorney expressly grants to Ross the attorney in fact the authority: .
“to locate, lease, sell and do all things necessary * * * in locating and perfecting title to mines and
“to preserve, manage, sell or dispose of, mortgage, lease hypothecate or otherwise transfer any and all of said mines, as well as any other mines then owned by the principal or in which he has ‘an interest in the state of Montana’ and also
“to locate mill sites, townsites, mining claims and water rights and take all necessary legal steps to * * * manage, work, sell, mortgage, lease or otherwise dispose of any and all of them to our best advantage.” (Emphasis supplied.)
Pursuant to the authority so conferred upon him the attorney in fact, in the name and for and on behalf of his principal, entered into the written contract with Walter McLaren giving to the latter a lease and option on the “Melissa” unpatented quartz lode mining claim.
There was and is nothing unusual in the contract. It is merely a common and ordinary lease with an option to purchase such as has been customarily used by those engaged in the mining business in this state from the earliest territorial days on down to the present.
In 3 Lindley on Mines (3rd Ed.), section 859, pp. 2123-2127, it is said:
“There is no class of contracts connected with the mining industry more familiar to the profession than that of options to purchase, working bonds, or executory contracts of sale. Unlike other classes of real estate, the value of a mine cannot be determined by mere superficial observation. Expensive investigations, involving measurements, examination of underground geological conditions, and sampling invariably precede the consummation of a purchase or sale of mining property. In order to justify an intending purchaser in making the requisite investigations and incurring the attendant expense, he invariably exacts some contract from the owner by which he secures the first privilege of purchasing the property in the event the examination proves satisfactory. In addition to this, a large army of ‘promoters,’ recruited from the ranks of all professions, trades, and occupations, swarm through the mining regions, seek ing exclusive privileges and ‘options’ on mining properties of all classes for the purpose of marketing them in the moneyed centers of the world. These conditions have given rise to a class of contracts infinite in variety, from a mere letter signed by the owner, agreeing to accept a certain price for his mine if paid within a certain time, to a formidable working bond, which contemplates entry into possession and extensive exploitation to prove the value of the mine before the privilege of purchase must be exercised. The ultimate object of all of them, however, is to secure the exclusive privilege of purchasing at a given price, within a specified time. * * *
“* * « the rule that contracts which do not involve mutuality cannot be specifically enforced is modified in favor of the holder of this class of contracts. He is afforded this equitable remedy, where he fully and fairly performs, or offers to perform, the terms of his contract within the time stipulated.
“The very purpose of an optional contract of this nature is to extinguish this mutuality of right and vest in one of the parties the privilege of determining whether the contract shall be vitalized and enforced. An option to buy or sell land, more than any other form of contract, contemplates a specific performance of its terms; and it is the right to have them specifically enforced that imparts to them their usefulness and value.”
Again 3 Lindley on Mines (3rd Ed.), section 861, at pp: 2134-2138, states:
“In a given tract of land it is always a matter of doubt to what extent, if any, mineral may exist in paying quantities, until very considerable development work has been performed, which requires in most instances large expenditure of capital. For this and other reasons not profitable to discuss here, a custom long ago arose for the owner of supposed mineral land to grant to a mine operator the right to enter upon the land and search for and extract mineral, and the form which the contracting parties pretty generally adopted to express their agreement was a ‘lease,’ which purported to entitle the ‘lessee’ to occupy such part of the premises as was necessary to carry on his mining operations, and to' ‘use’ the mine and extract the minerals therefrom. In return for these privileges or rights, the so-called ‘lessor’ usually reserved ‘rent’ in the form of a certain sum per ton on all mineral to be produced. This form of contract seemed best adapted to the mutual protection of the parties, in view of the uncertainty of the extent and value of the mineral, and was without doubt considered by them in fact as in name a ‘lease.’ * * *
“We have already seen that mineral in place is land; that when it is taken therefrom and changed into personal property, real estate has to that extent been destroyed. It is obvious that the normal relation of landlord and tenant does not contemplate destruction of the estate by the tenant, and that such destruction cannot properly be called ‘use.’ It is equally plain that the so-called ‘rent’ in a mining lease is something more than a return for the possession and use of real property. While the contract is in name a lease, it amounts in fact to a sale, and if it grant the right to take all the mineral, it is a sale of real estate — the lessee’s interest is a fee in the mineral and the lessor’s so-called rent is purchase money for real estate.
“Such rents or royalties are principal, and not income, and must be so treated in the ascertainment of the respective interests of life tenants and remaindermen. ***•'•'
“Although the doctrine that a grant of all the mineral in a described tract of land, whether by deed or so-called lease, conveys an estate in the mineral as land, does not seem to have been specifically passed upon-as applicable to a lease of mining property acquired or held under the United States mineral acts, we are constrained to believe that when such questions arise, the general doctrine as herein set forth will be recognized and applied with all its attendant consequences. That doctrine, as we have seen, is based upon the principles that mineral in place is land, that a grant of the right to extract and dispose of it, and thus destroy its character as real estate, amounts to its sale as land, and that royalties (or so-ealled rent), payable per quantum of the mineral taken, are purchase money and principal, rather than rent and income. As these principles flow from the nature of mineral land as such, we can see no reason why they should not be of equal application to leases of mineral land acquired from any source.”
The “Melissa” is an unpatented mining claim requiring the doing of annual labor and proof thereof to protect such claim from relocation by one asserting noneomplianee with the statutory provisions governing such mining property.
For a period of 13 years from February 1934, when the property was leased to McLaren, to February 1947, when this suit was commenced, Morton and his successors in interest reaped the benefits and protection resulting from the performance by plaintiff of the requisite annual work on this claim and the filing of proof thereof.
Within five months after the giving of the lease, Robert L. Morton the lessor, commenced suit to quiet title to the muring claim thereby evidencing an intention on his part to comply with the provision of the contract calling for the payment of one-half the stipulated selling price “on or before one year after said Lessor fully clears title to said premises,so that he can furnish good and sufficient title clear from all encumbrance or adverse claims.”
At no time during the life of the principal, Robert L. Morton, was the power of attorney ever revoked. There is nothing in the record to show that the attorney in fact at any time acted otherwise than for the best interest and advantage of his principal, or that the principal at any time ever questioned the right or authority of his attorney in fact to enter into the lease and option contract or that the principal at any time ever expressed or otherwise made manifest any dissatisfaction with any of the terms, conditions or provisions of the lease and option.
Notwithstanding the fact that the principal lived for some ten months after entering into the contract with McLaren there is. no evidence whatever-in the record before us that the principal Morton ever disapproved of any act of his agent, Dan G. Ross.
It is settled that a principal who neglects promptly to disavow an act of his agent, by which the latter has transcended his authority, makes the act his own; he is bound to disavow it the first moment the fact comes to his knowledge.
In Mechem on Agency (2nd Ed.) at page 175, sections 242 and 243, it is said:
“It must also be kept-in mind that one method of conferring powers may be by the granting of others to which the former may in some manner be deemed incidental or appurtenant. Thus the authority of the agent is not necessarily to be deemed to be confined to the doing of the main act authorized. Every delegation of power carries with it, by implication, unless the contrary is declared, the authority to do all those incidental acts, naturally and ordinarily done in such a case, which are reasonably necessary and proper to carry into effect the main power so conferred. * * *
“It is also to be assumed, unless the contrary is declared, that the principal intends that the authority shall be executed in accordance with the customs which prevail in transactions of that sort; and the main power will therefore be deemed to include the authority to do all those incidental acts which are customarily done by such an agent at that time and place, unless the contrary is made known to the persons with whom the agent deals. ’ ’
The powers expressly granted “to * * * sell or dispose of * * * lease, '* * * or otherwise transfer any and all of said mines” and the express restatement of such powers “to locate * * * mining claims * * * and * * * to * * * sell * * * lease or otherwise dispose of any and all of them to our best advantage ’ ’ clearly and sufficiently authorized the attorney in fact to enter into the usual and customary lease with option to purchase contract for and on behalf and in' the name of his principal and we so hold.
The judgment is reversed and the cause is remanded to the district court with directions to strike the court’s conclusion of law designated as No. II; to disallow the objections to the introduction in evidence of defendants’ exhibits A, B, C and D and to enter judgment for plaintiff and against defendants for the relief as prayed for in plaintiff’s complaint.
ASSOCIATE JUSTICES FREEBOURN, ANGSTMAN, METCALF and BOTTOMLY, concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
Trudy King, Personal Representative of the Estate of Hugh G. King (the Estate), appeals from the opinion and order of the Fourth Judicial District Court, Missoula County, denying her motion to modify the Estate’s monthly maintenance obligation. We affirm. The following dispositive issue is raised on appeal:
Did the District Court err in concluding that the separation agreement precludes modification of the maintenance award?
Hugh G. King (Hugh) and Barbara O. King (Barbara) were married in 1965 and their marriage was dissolved in 1990. The parties entered into a separation agreement which provided that Barbara would receive $3,000 per month in maintenance for five years and $3,500 per month thereafter. The maintenance obligation continues “for the duration of [Barbara’s] life” and does not terminate in the event of her remarriage.
Hugh died in July of 1992, and his daughter Trudy was appointed personal representative of his estate. Before his death, Hugh began construction of a golf course near Frenchtown, Montana. According to the Estate, the golf course has been unprofitable and has become a drain on the Estate’s resources as well as the resources of the Bud King Construction Company. Accordingly, on behalf of the Estate, Trudy filed a motion to substitute the Estate as the proper party to the dissolution action and sought to terminate the maintenance obligation based on “substantial financial problems” and changed circumstances. Barbara filed a brief in opposition asserting that under the terms of the separation agreement the maintenance provision was non-modifiable. Following the submission of additional briefs and oral argument, the District Court concluded that the maintenance obligation was not modifiable, and, on that basis, issued its opinion and order denying the Estate’s motion to terminate maintenance. The Estate appeals from this determination.
In reviewing a district court’s conclusions of law we determine whether the court’s interpretation of the law is correct. Stratemeyer v. Lincoln County (1996), [276 Mont. 67], 915 P.2d 175 (citing Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 474-75, 803 P.2d 601, 603-04). The Estate argues that the District Court erred in concluding that the separation agreement precluded modification. In addition, the Estate asserts that the separation agreement is ambiguous and that the parties intended for the agreement to be modifiable. Finally, the Estate asserts that if the Court determines that the separation agreement is non-modifiable then a mutual mistake has occurred. We are unpersuaded by each of the Estate’s arguments.
Barbara asserts that the maintenance obligation is an integral part of the property division and cannot be modified without the consent of the parties. In addition, she argues that the separation agreement contains a valid and enforceable modification clause which requires the written mutual consent of both parties. The District Court agreed with Barbara on both theories. The court determined that the modification clause requires the written mutual consent of the parties and, independently of the modification provision of the agreement, a maintenance requirement which is an integral part of the property distribution cannot be modified without the consent of the parties. Since, based on our case law, we hold that a maintenance provision which is an integral part of the property distribution is not modifiable without the consent of the parties, we do not reach the question of the correct interpretation of the modification provision of the parties’ agreement.
In its opinion and order the District Court noted that:
However, while the Court is deeply concerned with the current financial difficulties the Estate is experiencing as a result of Mr. King’s unfortunate business decision, Mrs. King’s monthly maintenance represents her equitable interest in the marital assets as they existed at the time of the 1990 dissolution decree and, as such, she is as valid a creditor against the Estate under the terms of the Agreement as is any other creditor. [Emphasis added.]
The District Court stated that although Hugh’s decision to construct a restaurant and golf course may have been an unfortunate business decision, the decision was exclusively Hugh’s and that it is not unconscionable to require him, and subsequently his estate, to shoulder any losses. The District Court also found that:
The parties’ intent that lifetime monthly maintenance and use of the Canyon Gate home represented Mrs. King’s interests in the marital property is evidenced in the Recitals .... This intent is further evidenced by the fact that the businesses were actually joined as parties to the dissolution proceeding, reflecting the nature of the businesses as integral to the marital estate, and the further fact that the property division provision of the Agreement provided in relevant part:
It is agreed that none of the corporations ... shall be required to disburse any assets. Said corporations shall remain intact in its [sic] present form with its [sic] present officers, present directors, and shareholders. Wife releases and relinquishes all rights, title, claim, and demand in any property which belongs to these corporations .... [Emphasis added.]
Thus, it is clear that the District Court held that the maintenance provision was, in fact, a means to provide Barbara with her equitable interest in the marital assets without dissolving the various corporate entities owned or controlled by Hugh.
When the parties label a provision in the separation agreement as “maintenance,” this Court is not bound by that label. Hopper v. Hopper (1979), 183 Mont. 543, 550, 601 P.2d 29, 33. That is, if the maintenance award is an integral part of the property distribution and that was the intent of the parties at the tíme of the agreement, the district court may find that the maintenance award is part of the property division and cannot be modified without the consent of the parties. Washington v. Washington (1973), 162 Mont. 349, 354, 512 P.2d 1300, 1302-03.
In Washington, this Court considered a maintenance provision which was to continue for nine years and did not terminate upon remarriage. The Court determined that the support provision could not be severed from the property settlement agreement without destroying the contract. Washington, 512 P.2d at 1302-03. We noted that in consideration of the agreement, the wife “relinquished all claims against property owned by the husband.” Washington, 512 P.2d at 1303.
Similarly, in the instant case, the separation agreement between the parties specified that the maintenance obligation “shall continue for the duration of [Barbara’s] life.” The agreement also provided that:
[N]orie of the corporations ... shall be required to disburse any assets. Said corporations shall remain in its [sic] present form with its [sic] present officers, present directors, and shareholders. Wife releases and relinquishes all rights, title, claim, and demand in any property which belongs to these corporations ....
Thus, our analysis in Washington is applicable here. The maintenance provision was intended to provide the wife’s equitable interest in the marital estate.
In In re Marriage of Robertson (1989), 237 Mont. 406, 773 P.2d 1213, this Court stated “it is clear to this Court that wife’s monthly payments were an inseverable part of a property settlement arrangement. The obligation was undertaken by the husband in exchange for the wife’s forbearance in regard to the property of the marital estate.” Marriage of Robertson, 773 P.2d at 1216. In the instant case, based on the separation agreement and the arguments presented, the District Court determined that the maintenance obligation represented Barbara’s equitable interest in the marital assets. As in Washington and Marriage of Robertson, the maintenance provision was integral to the property settlement and, absent the consent of the parties, is not modifiable. Marriage of Robertson, 773 P.2d at 1216; Washington, 512 P.2d at 1302-03.
Accordingly, we determine that the District Court correctly denied the Estate’s motion to terminate the maintenance obligation.
Affirmed.
JUSTICES NELSON, GRAY, HUNT and TRIEWEILER concur.
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MEMO OPINION
PER CURIAM:
Roy G. Crosby, Jr., an inmate of the Montana State Prison, forwarded to this Court a letter dated April 25, 1968, in which he argues with this Court as to its interpretation of the Mon tana statutory law discussed in our opinion rendered on November 14, 1966, in the ease of State of Montana v. Crosby, appearing in 148 Mont. 307, 420 P.2d 431. Petition for rehearing therein denied December 15, 1966. The matters referred to in the letter were formally presented to this Court by Crosby’s counsel upon his appeal and our determination thereof is set forth in our opinion.
Thereafter Crosby, appearing pro se, filed with this Court a petition for a writ of habeas corpus. The petition contains the matters referred to in his letter and in substance charges that his conviction was contrary to the facts and the law. The matters set forth in support of his contentions were before the Court upon the appeal referred to and consist of no more than again arguing the appeal.
In view of our decision which covers these matters again sought to be raised, we find no merit to the petition and it is hereby ordered that the writ sought be denied and the proceeding is dismissed.
|
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MR. JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal of a conviction from the District Court of the Sixth Judicial District, Sweetgrass County. Following a jury trial, Terry Lee Robbins was found guilty of two counts of burglary in violation of Section 45-6-204, MCA, and one count of felony theft in violation of Section 45-6-301, MCA. He was sentenced to ten years in the Montana State Prison under each of the burglary counts, to run consecutively, and to ten years under the felony theft count, to be served concurrently with the sentence for burglary. Defendant was designated a dangerous offender. We affirm.
Robbins and a companion, James Weaver, traveled together in a westerly direction across southern Montana in late July, 1982. They arrived in Big Timber the afternoon of August 3, 1982, and checked in as guests at the Grand Hotel. They were subsequently charged with burglarizing the game room in the hotel and a nearby sport shop in the early morning hours of August 4,1981. The coin doors of various game machines in the hotel had been pried open and forty-seven pistols were missing from the sport shop.
The suspects were arrested by police in Twin Falls, Idaho, on August 6, 1981. Weaver pleaded guilty to the offenses charged. Robbins resisted extradition, but eventually was extradited to Montana and appeared in Sweet Grass County District Court September 20, 1982. The Honorable Jack Shanstrom, District Judge, appointed James Tulley defendant’s counsel and a trial date was set. Tulley filed a motion for substitution of judge September 27, 1982. Consequently the trial date was vacated.
On September 30, 1982, Robbins moved pro se for dismissal of Tulley. In the meantime, Judge Shanstrom disqualified himself and Judge W. W. Lessley assumed jurisdiction over the cause. During the month of October Robbins filed numerous pro se motions, although at least one of those motions indicated he still considered Tulley to be acting as his counsel. The court acted on Robbins’ motion for dismissal of counsel November 8, 1982. Prior to Tulley’s dis missal however, Robbins pleaded not guilty to an amended information.
On November 15, 1982, the court ordered Robbins transferred to the custody of Missoula County authorities to answer theft charges against him there. Counsel was appointed for Robbins in Missoula, who negotiated with the Sweet Grass County Attorney regarding a plea bargain on the Missoula County charges. During the time Robbins was in custody in Missoula County, Judge Lessley retired and the Honorable Thomas Olson, newly elected District Judge, assumed his duties January 1,1983. On January 6, 1983, Judge Olson ordered Robbins returned from Missoula County to Big Timber for a hearing on pending motions. Mr. Karl Knuchel assumed the duties of counsel for Robbins January 7, 1983. A trial date was set for February 23, 1983. Robbins, through his counsel, filed a motion to dismiss for lack of a speedy trial, which the court dismissed.
Robbins raises three issues on appeal:
(1) Whether he was denied his constitutional right to counsel.
(2) Whether he received effective assistance of counsel.
(3) Whether he was afforded his constitutional right to a speedy trial.
Robbins argues he was denied his constitutional right to counsel. He contends no counsel was appointed for him prior to his arraignment November 8, 1982, and therefore he was denied his right to assistance of counsel during a critical stage of the proceedings against him. The record shows this is not the case. Mr. James Tulley was appointed counsel September 20, 1982. Although Robbins filed a motion to dismiss counsel on September 30, 1982, it was not acted on until November 8, 1982. Further a subsequent motion filed by Robbins October 6, 1982, stated he was represented by Mr. Tulley. Mr. Tulley was present with Robbins at his arraignment November 8. Robbins acknowledged he was capable of entering a plea and did enter a plea of not guilty. Tulley registered no objection, with the understanding the court allow Robbins to file whatever subsequent motions might be necessary. Even if Mr. Tulley had been dismissed before Robbins entered a plea, the record indicates Robbins made an intelligent and informed plea. In any event, no prejudice resulted from the claimed absence of counsel. Robbins pled not guilty to all of the charges and did not forfeit any of his rights. In any critical stage of the proceedings a defendant may question failure to provide counsel only where potential substantial prejudice inheres in the absence of counsel. Cadena v. Estelle (5th Cir. 1980), 611 F.2d 1385. See also United Sates v. Lacy (5th Cir. 1971), 446 F.2d 511. A critical stage is any step of the proceeding where there is potential substantial prejudice to the defendant. United State v. Wade (1967), 388 U.S. 218, 87 S.Ct. 1926, 18 L.Ed.2d 1149; State v. Dieziger (Mont. 1982), [200 Mont. 267,] 650 P.2d 800, 39 St.Rep. 1734. Robbins has not shown, nor could he show he was prejudiced in any way at the time of his arraignment November 8.
Counsel was not appointed for Robbins before September 20 because he was in Idaho fighting extradition to Montana. Counsel was appointed for him at his first court appearance September 20. Robbins claimed a conflict of interest on the part of counsel and on September 30 filed a motion for his dismissal. The record shows counsel had done a “substantial amount” of investigative work prior to his dismissal November 8. In other words, Robbins was represented by counsel from September 20 until November 8. The court did not find a conflict of interest, but dismissed counsel because Robbins asked that he be dismissed. On November 15, Robbins was transferred to Missoula County where he was represented by court appointed counsel on the theft charges pending there. This counsel was acting on Robbins’ behalf on the Sweet Grass County charges by attempting to have the charges dismissed as part of a plea bargain on the Missoula County charges.
When Robbins was returned from Missoula, Karl Knuchel was appointed counsel and immediately filed a motion for discovery. Mr. Knuchel had six and one-half weeks to prepare for the trial scheduled to begin February 23. Adequate time to prepare for trial is essential to the Sixth Amendment guarantee of effective representation of counsel. There is nothing to indicate he had insufficient time adequately to prepare. Had counsel been appointed earlier it would have been difficult to prepare for trial with Robbins in Missoula. Finally, there is no evidence Robbins was prejudiced by the late appointment of counsel.
The delay in appointment of Mr. Knuchel was not intentional. After Mr. Tulley had been dismissed, Robbins was transferred to Missoula County. Judge Lessley, who had assumed jurisdiction, retired and Judge Olson assumed jurisdiction over the case. Mr. Knuchel began working on the case within a day or two after Robbins returned from Missoula.
It is clear that Robbins was afforded his constitutional rights to counsel at all critical stages of the proceedings against him and any claimed denial of counsel for any period of time did not result in prejudice to him. Finally, “[a]ny error, defect, irregularity, or variance which does not affect substantial rights shall be disregarded [on appeal],” Section 46-20-702, MCA. Robbins has failed to show violation of his right to counsel during the proceedings against him and therefore his claim is denied.
Robbins argues he did not have effective assistance of counsel. This contention, however, is contradicted by the record. The right to counsel is guaranteed by the Sixth Amendment to the United States Constitution and by Art. II, Section 24 of the Montana Constitution. The court has interpreted these guarantees to mean effective assistance of counsel, State v. Bubnash (1961), 139 Mont. 517, 366 P.2d 155, and has adopted the “reasonably effective assistance” test stated as follows: “Persons accused of crime are entitled to the effective assistance of counsel acting within the range of competence demanded of attorneys in criminal cases.” State v. Rose (1980), 187 Mont. 74, 86, 608 P.2d 1074, 1081. Challenging the effective assistance of counsel places a burden on a defendant to show “that the error allegedly committed by a lawyer resulted in prejudice to him and stemmed from neglect or ignorance rather than from informed professional deliberation.” State v. Morigeau (Mont. 1982), [202 Mont. 36,] 656 P.2d 185, 189, 39 St.Rep. 2311, 2317.
Robbins’ specific allegations of various failures of appointed counsel simply do not withstand scrutiny. There is no evidence in the record counsel refused to call defense witnesses. There is no evidence that even had certain witnesses been called they would have been more than “after the fact” witnesses. That is, the relevance of their testimony as to facts surrounding the commission of the crime would have been minimal at best. The record does not show appointed counsel opened the door to evidence of other crimes. Nor does the record support the need for a change of venue. Defense counsel argued lack of corroboration of accomplice Weaver’s testimony, and he moved for a directed verdict for lack of corroboration of accomplice testimony. The record shows corroborative evidence was presented. Robbins’ charge that counsel failed to move for suppression of certain evidence borders on the ridiculous. The primary evidence was the stolen guns, which were seized pursuant to a properly issued search warrant. Robbins actually volunteered to arresting officers that he had a gun on his person. There were no irregularities in Robbins’ arrest. In fact, defense counsel’s decision not to move to suppress is indicative of sound professional judgment, not ineffective assistance.
Allegations of ineffective assistance of counsel “must be grounded on fact which appear in or are easily deduced from the record and which go beyond . . . mere conclusory allegations. There must be a showing of actual ineffectiveness on the part of counsel.” State v. Lewis (1978), 177 Mont. 474, 485, 582 P.2d 346, 353. See also DiGiallonardo v. Betzer (1973), 163 Mont. 104, 515 P.2d 705.
Robbins did not demonstrate the alleged errors and omissions of his counsel resulted in prejudice to him. He is unable to support his allegations with specific factual instances. Rather, the allegations reveal his counsel exercised professional judgment of one who zealously defended his client. Nor did Robbins meet the Morigeau standard, supra, or the reasonably effective assistance test.
The United States Supreme Court recently addressed the issue of ineffective assistance of counsel, applying an objective standard of reasonableness.
“A convicted defendant’s claim that counsel’s assistance was so defective as to require reversal of a conviction . . . has two components. First, the defendant must show that counsel’s performance was deficient. This requires showing that counsel made errors so serious that counsel was not functioning as the “counsel” guaranteed the defendant by the Sixth Amendment. Second, the defendant must show that the deficient performance prejudiced the defense. This requires showing that counsel’s errors were so serious as to deprive the defendant of a fair trial, a trial whose result is reliable. Unless a defendant makes both showings, it cannot be said that the conviction . . . resulted from a breakdown in the adversary process that renders the result unreliable.”
Strickland v. Washington (1985), 466 U.S. 668, at _, 104 S.Ct. 2052, at 2064, 80 L.Ed.2d 674, at 698.
Robbins has failed to demonstrate his counsel’s performance was so seriously deficient to conclude he was not functioning as the counsel guaranteed by the Sixth Amendment. He has failed to show his counsel’s performance prejudiced his defense to the extent he. was denied a fair trial. To show prejudice.:
“The defendant must show that there is a reasonable probability that, but for counsel’s unprofessional errors, the result of a proceeding would have been different. A reasonable probability is a probability sufficient to undermine confidence in the outcome.”
Strickland, 104 S.Ct. at 2068, 80 L.Ed.2d at 698. Robbins has not done this. He has not shown the outcome of his trial would be different had counsel performed differently. The test of effective assistance is not acquittal.
Finally, Robbins contends he was not afforded his constitutional right to a speedy trial guaranteed by the Sixth Amendment to the United States Constitution and Art. II, Section 24 of the Montana Constitution. In analyzing the validity of a claim of lack of a speedy trial, the Court investigates and balances four factors set forth by the United States Supreme Court in Barker v. Wingo (1972), 407 U.S. 514, 92 S.Ct. 2182, 33 L.Ed.2d 101: (1) length of delay; (2) reason for the delay; (3) the defendant’s assertion of his right to a speedy trial; and (4) prejudice to the defendant. Length of delay is of primary importance. Unless it is sufficiently long to be deemed presumptively prejudicial to the defendant, there is no need to consider the other factors. What length will be deemed presumptively prejudicial depends on the facts in each individual case. State v. Worden (1980), 188 Mont. 94, 611 P.2d 185.
The Sixth Amendment has no application until the putative defendant in some way becomes an accused. Until a citizen becomes an accused he suffers no restraints on his liberty and is not the subject of public accusation. United States v. Marion (1971), 404 U.S. 307, 92 S.Ct. 455, 30 L.Ed.2d 468. Robbins argues that the time should begin to run when the arrest was made, August 6, 1982. In State v. Smith (Mont. 1983), [206 Mont. 99,] 670 P.2d 96,100, 40 St.Rep. 1533, 1537, we said the clock begins to run when the defendant is arrested or when the complaint is filed. This is consistent with State v. Larson (Mont. 1981), 623 P.2d 954, 957-58, 38 St.Rep. 213, 215, where we said once a person is accused and subject to criminal prosecution that accusation may be by arrest, the filing of a complaint, or by indictment or information. It is at this time the person is afforded the constitutional protection of a speedy trial. See also State v. Ackley (Mont. 1982), [201 Mont. 252,] 653 P.2d 851, 39 St.Rep. 2091.
The real issue, however, is whether Robbins or the State should be charged with the time Robbins was in Idaho resisting extradition to Montana. Robbins argues this time should be weighed against the State because he was being held on a Montana warrant and therefore was subject to Montana’s jurisdiction. The State argues this time should not be weighed against the State because Robbins was not subject to Montana’s in personam jurisdiction. We agree with the State. During the forty-five days from Robbins’ arrest August 6 in Twin Falls, Idaho, until his appearance in court in Big Timber, Montana, he was resisting extradition to Montana. That time is attributable to him and he therefore waives any right to complain of lack of a speedy trial. “. . . Delays in bringing a defendant to trial caused or consented to by defendant are considered to constitute a waiver of the right to be tried within the time fixed by statute or required by the constitution.” State v. Talmadge (1983), 104 Idaho 249, 658 P.2d 920, 924. See also State v. Balla (1976), 97 Idaho 378, 544 P.2d 1148, where the Idaho court decided extradition tolls the calculation of the length of the delay.
Previous holdings on this issue are in conflict. In State v. Ackley, supra, even though the defendant waived extradition, the time between his arrest in Oregon and his initial appearance in Missoula County, Montana, weighed against him. In State v. Smith, supra, however, where defendant resisted extradition, proceedings which continued for nearly sixty days also weighed against the defendant. In State v. Armstrong (Mont. 1980), 616 P.2d 341, 37 St.Rep. 1563, the Court is clear, when computing length of delay it does not include that time in which the district court does not have jurisdiction to engage in proceedings leading to a trial.
Diligent prosecution includes a timely demand for extradition of a defendant, and extradition proceedings are sufficient reason for delay if the State has been diligent. State v. Smith, supra. The right of a defendant to resist formal extradition, however, cannot be charged to the State when computing the length of delay for speedy trial, if the State is acting in good faith. Balla, supra. The right of a defendant to a speedy trial commences when he becomes an accused. Marion, Smith, Larson, and Ackley, supra. The court then must acquire in personam jurisdiction over the accused to engage in proceedings leading to a trial. If the accused is out of state, the State must act diligently and in good faith to acquire jurisdiction. At the same time, the accused has a right to resist extradition. When he does so, however, he loses those days he resists from computation of length of delay. When an accused, does not resist, those days should not be weighed against him when the State is acting diligently and in good faith. For this reason, inclusion of those days in computing the length of delay, as was done in Ackley, will no longer be the rule. Only those days an accused actively resists extradition will be included. Days in which the court does not or cannot, through the State’s efforts, acquire jurisdiction over an accused will be counted against the accused and will not be included in computing the length of delay.
When applying the Barker test, it is first necessary to consider whether the delay which occurred is presumptively prejudicial to Robbins. 201 days elapsed between the time Robbins was arrested August 6, 1982 and the time he was brought to trial, February 23, 1983. During forty-five of these days Robbins was in Idaho resisting extradition. As noted earlier these days cannot be weighed against the State, and will not be included in computing the delay. Therefore, 156 days elapsed from the time of Robbins’ initial court appearance in Big Timber September 20, 1982, until his trial began February 23, 1983. During this period there were further delays, some of which were caused by Robbins. On September 27, he disqualified Judge Shanstrom, which caused a delay. On September 30, he attempted to disqualify his counsel and began filing motions both as though he were representing himself and as though he were represented by counsel. Some of these motions were responded to as though he were representing himself. On November 15 he was transferred to Missoula County to answer charges there, resulting in a further delay of fifty-two days. This delay should not weigh against the State, consistent with our holding in Armstrong. Even if the entire delay between September 27 and November 15 does not weigh against Robbins, there is a delay of only 104 days, which is well within the Court’s guidelines for acceptable length of delay, and is not presumptively prejudicial to Robbins. Therefore the other three factors of the Barker test need not be considered. Robbins cannot complain he was not granted a speedy trial.
The conviction of the District Court is affirmed.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES MORRISON, WEBER and SHEEHY concur.
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MR. JUSTICE MORRISON
delivered the Opinion of the Court.
Defendant Burlington Northern, Inc., appeals the January 28, 1985, judgment in favor of plaintiff Mortensen Construction Company. Plaintiff’s motion to dismiss the appeal as untimely is granted.
On January 28, 1985, judgment was entered in favor of Mortensen Construction Co. (Mortensen) and notice of entry of judgment was mailed to Burlington Northern, Inc. (BN). BN timely filed a motion for judgment notwithstanding the verdict and motion for new trial on February 8, 1985. Prior to filing these motions, BN requested the court reporter to provide a transcript of the proceedings. Due to a backlog of work, and the court reporter’s hospitalization, no portions of the transcript were provided to BN until May 8, 1985.
No ruling was made on the motions, so on March 25, 1985, both motions were deemed denied pursuant to Rule 59(d), M.R.Civ.P. No entry of the deemed denials was made in the court record, nor was notice of such sent to BN. The 30-day time limit on appeals commenced on March 25, 1985, and expired on April 24, 1985. Thereafter, BN counsel filed an affidavit on May 9, 1985, informing the District Court he would amend the motions once he received the entire transcript of the proceedings.
On May 27, 1985, Mortensen sent a letter to BN demanding payment of the judgment. On May 30, 1985, BN filed a motion for stay of proceedings to enforce judgment. A hearing was held before the District Court on June 3, 1985, which granted the stay of execution, yet asserted it no longer had jurisdiction over the case. BN filed its notice of appeal on June 3, 1985. Mortensen responded with a motion to dismiss appeal and motion for award of damages, filed June 18, 1985.
The issues we address are: 1) whether BN’s appeal is timely; and 2) whether Mortensen should be awarded damages and cost of this appeal pursuant to Rule 32, M.R.App.Civ.P. '*' •
BN argues that Rule 5, M.R.App.Civ.P. entitled it to receive notice of the deemed denial of its motions. Rule 5, M.R.App.Civ.P.'-provides, in part, that a timely Rule 50(b) or Rule 59 motion suspends the running of time for appeal until an order is entered upon the motion and the clerk has mailed notice of such entry.
In making this argument, BN ignores the past decisions of this Court that Rule 59(d), M.R.Civ.P. invokes a mandatory time limit. Fields v. Summit Engineering (Mont. 1982), [201 Mont. 204,] 653 P.2d 1204, 39 St.Rep. 2057; Sell v. Sell (Mont. 1981), 630 P.2d 222, 38 St.Rep. 956; Leitheiser v. Montana State Prison (1973), 161 Mont. 343, 505 P.2d 1203. The notice provision of Rule 5, M.R.App.Civ.P. applies to orders upon motions, not deemed denials. Rule 59(d), M.R.Civ.P., as amended, effective October 9, 1984, clearly provides that a post-trial motion is deemed denied 45 days after its filing if it has not been ruled upon. We find BN’s reading of the Rules to be incorrect, and dismiss the appeal as untimely.
Mortensen asserts it is entitled to damages and cost of this appeal, pursuant to Rule 32, M.App.R.Civ.P. We do not agree. The test for granting damages under Rule 32, M.App.R.Civ.P. is whether there are substantial and reasonable grounds for appeal, and whether the appeal was taken merely for delay purposes.
BN’s appeal advances a reasonable interpretation of the relationship between Rule 59(d), M.R.Civ.P. and Rule 5, M.App.R.Civ.P. While the same argument has been previously rejected by this Court, see Leitheiser, supra, Rule 59(d), M.R.Civ.P. has since been amended, and Rule 5, M.App.R.Civ.P. may be amended in the near future for its lack of clarity. We do not find BN’s appeal to be frivolous, and deny Mortensen’s motion for damages pursuant to Rule 32, M.App.R.Civ.P.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, HUNT, WEBER, SHEEHY and GULBRANDSON concur.
|
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On June 16,1992, the Defendant was sentenced to ten (10) years with five (5) years suspended plus conditions which includes a fine of $5,000 and a surcharge of $500. for Theft. Payments shall begin within forty-five (45) days of his release from custody. The sentence shall be served consecutively with that imposed for his Forgery conviction DC-91-097(A). The defendant shall receive credit for 72 days time served.
On March 11, 1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Michelle Maltese, Legal Intern from the Montana Defender Project. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed.
The reason for the decision is the sentence imposed by the District Court is presumed correct pursuant to Section 46-18-904(3), MCA. The Division finds that the reasons advanced for modification are insufficient to deem inadequate or excessive as required to overcome the presumption per Rule 17 of the Rules of the Sentence Review Division of the Montana Supreme Court.
Hon. Thomas McKittrick, Chairman, Hon. John Warner, and Hon. James Purcell, Judges
The Sentence Review Board wishes to thank Michelle Maltese, Legal Intern from the Montana Defender Project for her assistance to the defendant and to this Court.
|
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On January 13,1993, the Defendant was sentenced to ninety (90) years with twenty (20) years suspended for Aggravated Kidnapping. The defendant shall be designated a dangerous offender for purposes of parole eligibility, plus abide by all requirements and regulations imposed the decision, January 13, 1993.
On September 24,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Marie Andersen, Legal Intern from the Montana Defender Project. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed.
The reason for the decision is the sentence imposed by the District Court is presumed correct pursuant to Section 46-18-904(3), MCA. The Division finds that the reasons advanced for modification are insufficient to deem inadequate or excessive as required to overcome the presumption per Rule 17 of the Rules of the Sentence Review Division of the Montana Supreme Court.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. John Warner, Judges
The Sentence Review Board wishes to thank Marie Andersen, Legal Intern from the Montana Defender Project for her assistance to the defendant and to this Court.
|
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Donald Briner appeals his conviction on two counts of felony sale of dangerous drugs after a jury trial in the Thirteenth Judicial District Court, Yellowstone County. We affirm.
The issues are:
1. Did the District Court err in refusing to allow the defense to inspect Turner’s statement to the police at the pretrial hearing?
2. Did the court err in denying Briner’s request for a continuance when witness Turner was granted immunity?
3. Were the two packets of methamphetamine improperly admitted into evidence because there was no proof of chain of custody?
4. Did the court err in instructing the jury on the mental states of “knowingly” and “purposely”?
5. Does outrageous government misconduct bar this conviction?
6. Was the methamphetamine here involved properly designated a Schedule II dangerous drug?
In December 1988, Hal Turner, who described himself as having previously led a “life of crime” and who had been on parole since 1987, offered to become a confidential informant for law enforcement in Yellowstone County, Montana. Turner became an informant because he “wanted to change [his] life and [he] figured that was the best way to do it, doing something good finally.”
Turner began working as an informant for Yellowstone County law enforcement in January 1989 and continued through September or October 1989. He also began working for the federal Drug Enforcement Administration at approximately the same time. The major drug bust operation in which Turner was involved was dubbed “Operation Snowball.” Approximately seventy drug cases were involved in Operation Snowball, and Turner was involved in as many as forty to fifty of them. He was considered an extremely reliable informant.
Prior to working as an informant, Turner made a statement to the Drug Enforcement Division of Yellowstone County describing his acquaintances, the people from whom he had purchased drugs, and the people from whom he could purchase drugs in the future. Donald Briner was mentioned in this statement.
On July 28,1989, the police initiated a drug purchase from Donald Briner. Two Yellowstone County deputy sheriffs met informant Turner at a parking lot in Billings. They searched Turner and his car for contraband, put a transmitter on him, and gave him some silver coins with which to make the purchase.
Turner was instructed to go to a local bar to attempt to make contact with Briner. He went to the bar but did not find Briner there. He then left the bar and drove by the deputy sheriffs, who told him to go to Briner’s residence, a trailer located at the Big Sky Campground.
Turner went to Briner’s trailer, knocked on the door, and entered the trailer. Inside, Briner sold Turner three and one-half grams of “crank,” or methamphetamine. These activities were monitored by the deputies, who were listening to the transmitter about 300 yards from the trailer. Turner left the Briner residence, met the deputies at a prearranged location, and turned over the methamphetamine. The deputies then searched Turner and his vehicle again. A field test of the substance Turner purchased from Briner confirmed that it was methamphetamine. Testing at the State Crime Lab also showed that the substance was methamphetamine.
On July 31, 1989, a similar transaction took place. Two deputy sheriffs met Turner, searched him and his car, wired him with a transmitter, and gave him some silver. While being monitored, Turner went to Briner’s trailer and purchased from Briner about two grams of a substance later identified both in a field test and by the State Crime Lab as methamphetamine. After leaving Briner’s trailer, Turner went directly to a predesignated location where he gave the deputies the methamphetamine and where both he and his car were searched again.
Based upon the above evidence, the jury found Briner guilty of two counts of sale of dangerous drugs.
I
Did the District Court err in refusing to allow the defense to inspect Turner’s statement to the police at the pretrial hearing?
The District Court held a pretrial hearing to consider a number of motions then before it. These included defense motions to dismiss the charges against Briner on grounds of entrapment and prosecutorial misconduct and to allow the defense access to a seventy-page statement Turner had given to the police. The principal ground argued for several of the motions was Turner’s criminal activities during the time he was acting as an informant. Turner admitted to drug use, theft, trading drugs for sex, and violations of the terms of his parole, among other crimes, during the months he was acting as an informant for federal and state authorities.
The day before he testified at the pretrial hearing, Turner refreshed his memory by reading the seventy-page statement he had previously made to authorities. During his testimony he acknowledged that he had so used the statement. The defense requested that the statement be produced. After eliciting Turner’s testimony that he had never before reviewed or signed the seventy-page statement, the court denied the motion to produce.
Briner’s argument is based on Rule 612, M.R.Evid., which provides in part:
If a witness uses a writing to refresh memory for the purpose of testifying, either
(1) while testifying, or
(2) before testifying, if the Court in its discretion determines it is necessary in the interests of justice, an adverse party is entitled to have the writing produced at the hearing, to inspect it, to cross-examine the witness thereon, and to introduce into evidence those portions which relate to the testimony of the witness ...
Briner claims that, in order to properly cross-examine Turner for purposes of the pretrial motions, he should have been allowed to examine Turner’s seventy-page statement.
At the pretrial hearing, one issue before the court was whether the defense should be given access to Turner’s statement. It would have been nonsensical to allow the defense access to the statement at the same hearing at which defense access to the statement was an issue before the court.
Under Rule 612, M.R.Evid., it is within the discretion of the district court whether, in the interest of justice, an adverse party should have access to a statement used by a witness to refresh memory. Briner has not specified anything in Turner’s statement which would have aided his already extensive cross-examination of Turner at the pretrial hearing. Also, as a result of the pretrial hearing, the court granted Briner’s motion for discovery of the seventy-page statement by Turner. After the hearing, and well before the trial in this matter, the defense was provided with a copy of the statement.
We hold that the District Court did not err in refusing to allow Briner’s counsel to inspect Turner’s statement at the pretrial hearing.
II
Did the court err in denying Briner’s request for a continuance when witness Turner was granted immunity?
On the third day of Briner’s trial, the Yellowstone County Attorney’s Office gave Turner a written immunity agreement in exchange for his testimony at the trial. The United States Attorney’s Office likewise gave Turner a written immunity agreement. The defense asked the court to continue the case to give it time to prepare for “this new evidence that has just happened and has just been disclosed and changes completely... the thrust of the whole case.” The court denied the motion.
Briner argues that his defense was based primarily on the cross- examination of Turner as to his credibility, because of the crimes Turner committed while he was working as an undercover agent and his claims that he had received no promises of help or immunity therefor. However, as the State points out, after Turner was granted immunity from prosecution, Briner’s counsel was able to cross-examine Turner fully on his criminal activities. If anything, the grant of immunity aided the defense by allowing it to proceed with a thorough cross-examination of Turner.
Briner also argues that the court prejudiced him by refusing to grant a continuance to allow his counsel to prepare for cross-examination of Turner when Turner was granted immunity. The court did allow a pause in the proceedings so that Briner’s counsel could examine the agreements.
The immunity agreements were entered into evidence and Turner was cross-examined in general as to their terms. Turner testified that his attorney, not he, negotiated the specifics of the agreements. Briner does not explain what he would have gained from added cross-examination of Turner concerning the agreements.
We hold that the District Court did not err in denying Briner’s request for a continuance when Turner was given immunity.
Ill
Were the two packets of methamphetamine improperly admitted into evidence because there was no proof of chain of custody?
Briner contends that there were several fatal gaps in the chain of custody of the packets of methamphetamine he allegedly sold to Turner. The State did not offer testimony from the person who mailed the packets from the sheriff’s office to the State Crime Lab in Missoula, the person who received them at the Crime Lab and mailed them back to the sheriff’s office, or the person at the sheriff’s office who received the packets from the Crime Lab and returned them to the evidence locker.
Briner cites State v. Carney (1986), 219 Mont. 412, 714 P.2d 532. In Carney, the evidence, a blood sample, was left in the open at a dispatcher’s desk for some twelve hours before it was in official custody. The District Court exercised its discretionary authority in ruling that a proper foundation had not been laid for introduction of the sample into evidence. The correctness of that ruling was not one of the issues considered on appeal.
In the present case, the time periods in question were after the methamphetamine was in official custody. The officer who received the methamphetamine from Turner testified that he marked and sealed the packets into which he placed it. A forensic scientist from the Crime Lab testified that she later broke those seals, tested the methamphetamine, and resealed the packets. At trial, the packets remained under the seals she had placed on them. Briner has not shown any evidence to overcome the resulting presumption that there was no tampering with the methamphetamine. State v. Armstrong (1980), 189 Mont. 407, 431, 616 P.2d 341, 355.
We hold that the District Court did not abuse its discretion in admitting the packets of methamphetamine into evidence.
IV
Did the court err in instructing the jury on the mental states of “knowingly” and “purposely”?
Briner argues that the definitions of “knowingly’ and “purposely’ as set forth in Montana statutes and in Jury Instruction No. 10 do not pass constitutional muster for definitions of intent sufficient to convict a person of a criminal offense. He recognizes that this issue has previously been presented to this Court and that the Court has consistently upheld the constitutionality of the statutory definitions of “knowingly’ and “purposely.” See State v. Sharbono (1977), 175 Mont. 373, 563 P.2d 61; State v. Beach (1985), 217 Mont. 132, 705 P.2d 94.
Briner states that this issue is raised for purposes of preservation for possible use in federal court. Inasmuch as no argument has been made that this Court should overturn its previous holdings, we affirm the District Court on this issue.
V
Does outrageous government misconduct bar this conviction?
Briner argues that Turner’s conduct, including drug use and other criminal acts during the months he acted as an informant, should preclude this conviction, which was based in large part upon Turner’s testimony. He asserts that the government’s failure to monitor and control Turner violates a sense of justice. Briner cites the doctrine of outrageous government conduct as recognized in various courts.
The doctrine of outrageous government conduct, as its name suggests, focuses on conduct of the government. See, e.g., United States v. Stenberg (9th Cir. 1986), 803 F.2d 422, 429. It is a “most narrow” defense. United States v. Ryan (9th Cir. 1976), 548 F.2d 782, 789, cert. denied, 429 U.S. 939. The government is not held accountable for unrelated criminal activity of an informant, especially when law enforcement was unaware of such activity. United States v. Simpson (9th Cir. 1987), 813 F.2d 1462, 1470, cert. denied, 484 U.S. 898, appeal after remand, 927 F.2d 1088.
In this case, there was no evidence that government agents participated in Turner’s criminal activity while he was acting as an informant. Nor was there any evidence that Yellowstone County authorities were aware of his illegal activities, other than two incidents of smoking marijuana which he reported to his probation officer. It is not claimed on appeal that Briner was entrapped or that the government engaged in brutality to or coercion of Turner to convince him to become an informant, or that Turner’s illegal activities were related to his purchases of drugs from Briner while he was wired and closely monitored by officers. The audio tapes of those purchases were introduced into evidence.
Turner’s illegal activities during the time he acted as an informant first came to light in December 1989 when he was no longer working as an informant and when he testified at a federal drug prosecution. The record does not support any connection between local law enforcement and Turner’s illegal activities.
In no way do we condone Turner’s illegal activities while he was acting as an informant. We hold, however, that this conviction is not barred under the doctrine of outrageous government conduct.
VI
Was the methamphetamine here involved properly designated a Schedule II dangerous drug?
Briner contends that possession of methamphetamine has been decriminalized in Montana because, following changes in federal law, the Board of Pharmacists did not reschedule methamphetamine under § 50-32-203, MCA. A similar contention was firmly rejected by this Court in State v. Meader (1979), 184 Mont. 32, 36-37, 601 P.2d 386, 388-89:
While it is true that the schedules were not annually revised or republished, we cannot accept the argument that this failure to republish and revise resulted in decriminalization of marijuana and methamphetamine ... [T]he Dangerous Drug Act does not indicate that the legislature intended the Board of Pharmacists to have the power, by inaction, to decriminalize the possession of all types of drugs and substances. Rather, we find that the legislature intended the original five schedules to be effective until such time as the Board and the Department took steps to carry out their statutory duties to revise and republish."
We hold that, under the same reasoning as in Header, the absence of a timely revision of the schedules of dangerous drugs did not negate the status of methamphetamine as a Schedule II dangerous drug.
Affirmed.
JUSTICES HARRISON, GRAY, McDONOUGH and WEBER concur.
|
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MR. JUSTICE MORRISON
delivered the Opinion of the Court.
Wayne S. Hall, appellant, requested the State Compensation Insurance Fund to waive any subrogation interest it might have in a third-party claim filed by Hall and to redetermine Hall’s permanent partial impairment rating. The State Fund refused both requests. Hall petitioned the Division of Workers’ Compensation to review the State Fund’s decision. On March 23, 1984, the Division determined that the State Fund’s decision was correct. On December 24, 1984, the Workers’ Compensation Court also affirmed the State Fund. Hall now appeals to this Court. We reverse.
This cause was submitted to the Workers’ Compensation Court and to this Court on the following agreed statement of facts:
“1. Wayne S. Hall was injured within the scope and course of his employment for Karl Weissman and Sons on August 6, 1982. At the time of the Petitioner’s injury, Karl Weissman and Sons was enrolled under Plan 3 of the Workers’ Compensation Act, and the State Compensation Insurance Fund was its compensation carrier.
“2. Respondent accepted liability for the Claimant’s injury and paid medical benefits of $2,260.01 and acknowledged liability for an indemnity permanent partial disability award of $11,835.00. The ‘Guide to Evaluation of Permanent Impairment’ published by the American Medical Association was utilized by the Compensation Insurance Fund in computing the indemnity for permanent partial disability. Utilizing this guide, the following evaluation was made: (a) 15% upper arm impairment = 9% of the whole man; (b) 25% of lower leg impairment = 10% of the whole man; then utilizing the AMA Guide, the combination of those two impairments would equal 18% of the whole man. This resulted in a computation of 90 weeks of compensation at $131.50 a week for a total of $11,835.00.
“3. The preface of the AMA Guide published in 1971 contains the following language: ‘After values of all impairments involved have been computed and transposed to a common denominator, the final impairment value, whether the result of a single or combined impairments, should be expressed in terms of the nearest 5%.’ The Claimant requested that these guidelines be followed and that his permanent partial impairment be set at 20% rather than 18%, and the State Fund declined to make the adjustment.
“4. The Claimant pursued a third party claim as the result of the injury, and the State Fund declined to participate. The Claimant settled the third party claim for the sum of $25,000. This represented the insurance policy limits of the third party tort-feasor. The Claimant’s expenses, costs and attorneys’ fees for the third party action amounted to the sum of $6,259.00. The Respondent claimed a subrogation interest of $7,048.00 and subtracted that amount from the indemnity award at the time of payment. The Claimant contended that his third party claim was valued in excess of $40,000.00 but that the $25,000.00 settlement at policy limits was all that was available. On March 23, 1984, the Division of Workers’ Hall, Compensation conducted an administrative review of the matter and determined that the claimed subrogation interest of the Respondent was appropriate.”
Prior to oral argument, the parties settled the impairment rating issue. The remaining issue to be determined is:
If the value of the claimant’s total damage for the personal injuries he sustained exceeded $40,000, and the $25,000 insurance coverage constituted the only source of funds to liquidate such damage, was the respondent entitled to a subrogation interest in the $25,000 settlement proceeds of the third-party claim?
In answering this question affirmatively, the Workers’ Compensation judge relied on this Court’s decision in Brandner v. Travelers Insurance Company (1978), 179 Mont. 208, 587 P.2d 933. This reliance is misplaced as Brandner is easily distinguishable from the caes at bar. In Brandner, the claimant settled with the third party, Burlington-Northern, for $70,000, an amount not dictated by the upper limits of any insurance policy. We found that claimant was made whole by a voluntary settlement in satisfaction of all claims. The defendant, Burlington Northern Railroad, had no limited liability. Since claimant had obtained full legal redress, we held that claimant’s employer’s insurer was entitled to subrogation.
In the case at bar, however, claimant reached a settlement with the third-party tortfeasor which did not afford full legal redress. The settlement was for the upper limit of the tortfeasor’s insurance policy, $25,000. If claimant’s damages exceed $40,000, claimant’s settlement, together with the Workers’ Compensation award, does not fully compensate claimant. Under these circumstances, we find our decision in Skauge v. Mountain States Telephone and Telegraph Company (1977), 172 Mont. 521, 565 P.2d 628, to be relevant.
In Skauge, claimants’ rented home was destroyed by an explosion. Their personal belongings were insured for $4,000. The actual value of the property was over $11,000. Claimants recovered the upper limit of their insurance policy, then sued third-party tortfeasors, seeking the total amount of their loss. In addressing an issue regarding the subrogation rights of the insurer, we stated that:
“. . . when the insured has sustained a loss in excess of the reimbursement by the insurer, the insured is entitled to be made whole for his entire loss and any costs of recovery, including attorney’s fees, before the insurer can assert its right of legal subrogation against the insured or the tort-feasor.” Skauge, 172 Mont. at 528, 565 P.2d at 632.
Applying this principle to the facts now before us, the State Fund is not entitled to any subrogation interest in the $25,000 settlement proceeds as claimant has not been made whole.
Furthermore, 1972 Mont. Const., art. II, Section 16, provides in pertinent part:
“No person shall be deprived of this full legal redress for injury incurred in employment for which another person may be liable except as to fellow employees and his immediate employer who hired him if such immediate employer provides coverage under the Workmen’s Compensation Laws of this state . . .”
This section was interpreted in White v. State (Mont. 1983), [203 Mont. 363,] 661 P.2d 1272, 40 St.Rep. 507, as creating a fundamental right to full legal redress. Thus, to interpret the Workers’ Compensation Act’s subrogation statute, Section 39-71-414, MCA, to allow the State Fund subrogation rights when the claimant has not achieved full legal redress would be an unconstitutional application of an otherwise constitutional statute. (See Brandner, 179 Mont. at 211-214, 587 P.2d at 936 - 937, for a discussion of the constitutionality of Section 39-71-414, MCA.)
We hold that, in a case of reasonably clear liability, where a claimant is forced to settle for the limits of an insurance policy which, together with claimant’s workers’ compensation award, do not grant full legal redress to claimant, the insurer is not entitled to subrogation rights under Section 39-71-414, MCA. When claimant is made whole, subrogation begins.
Reversed.
|
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MR. JUSTICE ANGSTMAN:
This action was brought by plaintiff to foreclose a lien upon certain goats, and for damages caused by them to plaintiff’s crops.
The facts are substantially these: Plaintiff was the owner and operator of a certain ranch. On the afternoon of September 11, 1949, lie saw some goats in what was called the Noble field on his ranch. These goats belonged to defendant. Plaintiff again saw them in the field on the 12th day of September. He saw them again in his field on the 19th of September and took them and placed them in a corral on his premises. The corral was located on the south half of section 28, but the place where they were grazing when he took them into possession was in the north half of the section.
The court after trial made findings of fact and conclusions of law in favor of plaintiff and entered judgment accordingly. Defendant has appealed from the judgment.
The first point raised by defendant is that plaintiff did not perfect a lien in compliance with the statute because he contends the proper notice was not given.
R. C. M. 1947, section 46-1410, provides in part as follows: “The person taking any such animal into his possession shall, within seventy-two hours thereafter, give written notice to the owner or person in charge of the animal * * * In all eases a copy of said notice shall likewise be posted at a point where said stock was taken up.”
The record shows that a written notice was served upon defendant personally. A copy was posted at the corral where the goats were impounded. Defendant contends there was failure of compliance with this statute because copy of the notice was not posted at a point where the goats were taken up. It is his contention that notice should have been posted where the goats were grazing when plaintiff took possession of them.
It should be noted that the point where the defendant took possession of the goats was from one to one and a half miles distant from the corral where they were impounded. It is of course well settled that proceedings to impound must be strictly complied with in order to acquire a lien. Jorgenson v. Story, 78 Mont. 477, 254 Pac. 427; 3 C. J. S., Animals, sec. 192, page 1304; 2 Am. Jur., Animals, sec. 149, p. 801.
Here it is conceded that defendant was personally served with adequate notice; he acted upon the notice. A few days after the notice was served upon him he went to the premises of plaintiff and examined the goats in the corral; he and others examined the wheat field where the goats were grazing when taken possession of by plaintiff — plaintiff pointing out the field to them — in an effort to ascertain the extent of the damages done. Had there been any defect in the notice, defendant waived it under the circumstances here shown. Compare: Red Hawk v. Joines, 129 Or. 620, 278 Pac. 572. There was, however, no defect in the service of notice.
In Jaquith v. Royce, 42 Iowa 406, the court held that the term “take up”, as used in an ordinance providing for impounding cattle running at large, necessarily includes the idea of confining. Hence a notice posted where the goats were confined is a notice where they were “taken up.” There is no merit in defendant’s contention that adequate notice was not served.
The next contention of defendant is that plaintiff, having seen the goats in his field as early as September 11th and 12th, was charged with the duty of repairing his fences before the damages were done on September 19th. The evidence shows that plaintiff’s fence crossed two draws or gulches and that goats could conveniently go under the fence into plaintiff’s field at the bottom of these draws. But under some circumstances R. C. M. 1947, section 46-1410, permits a person to take animals into his possession regardless of whether the premises are enclosed by a legal fence. He may do so if the animals are “wrongfully upon” his premises.
Section 46-1704 provides: “It shall be unlawful for any owner or owners, person or persons in control of swine, sheep or goats, to wilfully permit the same to run at large.”
Defendant admitted that he turned his goats out without fencing them and without a herder. Clearly they were wrongfully upon the premises of plaintiff and this whether plaintiff had a legal fence or not. The court did not err in holding that plaintiff was not precluded from recovery by reason of the condition of his fences.
The next assignment of error raises the point that plaintiff retained more goats than was justified under the circumstances considering the value of the goats and the extent of the damages inflicted by them.
Under section 46-1410 the plaintiff is permitted to retain only “a sufficient amount of such stock to cover the amount of damages claimed by him.” Here there was sharp conflict in the evidence as to the value of the goats. Likewise there was a dispute in the record as to the extent of the damages done by them and the cost of feeding them while retained by plaintiff.
We cannot say from the record that the evidence does not support the trial court’s finding. There is ample evidence in the record to show that the value of the goats was not disproportionate to the damage caused by them and claimed by plaintiff and hence we cannot say that the court was not warranted in finding that plaintiff was justified in retaining all of the goats to satisfy his claim for damages.
Defendant contends that the court erred in not awarding him damages under his cross-complaint. Defendant submitted some evidence that plaintiff did not milk the goats and that by reason thereof they were injured. It is sufficient answer to say that the evidence on this point too was conflicting. Plaintiff testified that he did milk the goats. There is evidence also to the effect that defendant himself did not milk them regularly. In any event if the goats were being injured by failure to milk them, defendant knew it within two or three days after the goats were confined by plaintiff and the court was justified in concluding that defendant could and should have milked them himself either where they were confined or that he should have regained possession of them by giving a bond as provided in section 46-1410 and giving the goats the care which he thought they should have.
Defendant nest contends that the statute authorizing the procedure followed by plaintiff was and is unconstitutional. A like question was before this court in Thompson v. Tobacco Root Co-op., State Grazing Dist., 121 Mont. 445, 193 Pac. (2d) 811. There we upheld a statute similar in terms to the one under consideration here. We hold that the statute is valid.
Plaintiff by cross-assignment of error contends that the court erred in finding that the sum of ten cents per goat per day is a reasonable sum for caring for and feeding the goats. He asked for and submitted proof that fifty cents per goat per day was the reasonable sum for caring for the goats. Since plaintiff filed no cross-appeal he is in no position to complain of the court’s finding in this respect. '
The error, if such it be, is not of a compensatory character under section 93-8023. It would not call for the same, but a different result from that obtained, and in consequence to predicate error thereon a cross-appeal should have been taken.
We have given consideration to other points raised by defendant but we find no reason for disturbing the judgment of the trial court.
The judgment is affirmed.
MR. JUSTICES METCALF, BOTTOMLY and FREEBOURN, concur.
|
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MR. JUSTICE McDONOUGH
delivered the Opinion of the Court.
The State appeals the decision of the Sixteenth Judicial District Court contending that the lower court erred in construing the limits of its jurisdiction. We agree with the State and reverse.
The issue is: Do state courts have jurisdiction over a non-Indian charged with violating Section 61-7-108, MCA, on an Indian reservation? Section 61-7-108, MCA, reads:
“Immediate notice of accidents. The driver of a vehicle involved in an accident resulting in injury to or death of any person or property damage to an apparent extent of $250 or more shall immediately by the quickest means of communication give notice of such accident to the local police department if such accident occurs within a municipality, otherwise to the office of the county sheriff or the nearest office of the highway patrol.”
The relevant facts are as follows: Respondent Thomas allegedly struck a calf owned by the Parkers, an Indian family ranching on the Northern Cheyenne Reservation. The State alleged that Thomas violated the statute by leaving the scene of the accident without giving notice to law enforcement.
The District Court held that state courts do not have jurisdiction for the crime of failing to report an accident where: the accident occurred within the reservation, the driver was a non-Indian, and the property involved in the accident belonged to an Indian. The lower court reached its conclusion by applying Oliphant v. Suquamish Indian Tribe (1978), 435 U.S. 191, 98 S.Ct. 1011, 55 L.Ed.2d 209, and the adoption of the enabling act of Montana under Article I of the Montana Constitution. Oliphant, according to the lower court, prevents jurisdiction of the offense at issue in tribal court because respondent Thomas is a non-Indian. The Montana Constitution, according to the lower court, prevents jurisdiction in state courts under Montana’s enabling act because the act provides that reservations are under the absolute jurisdiction of the United States. We disagree with the lower court and reverse on the authority of United States v. Wheeler (1978), 435 U.S. 313, 98 S.Ct. 1079, 55 L.Ed.2d 303, and Draper v. United States (1896), 164 U.S. 240, 17 S.Ct. 107, 41 L.Ed. 419. We hold for the purposes of remand that the state has jurisdiction.
First, in regard to the lower court’s holding on Article I of the Montana Constitution, the lower court failed to consider Draper. Draper held that the prohibition in Montana’s enabling act against state jurisdiction on Indian reservations did not prevent the State from assuming jurisdiction of crimes committed by non-Indians against non-Indians. Draper, 164 U.S. at 244, 17 S.Ct. at 108.
Construction of the applicable federal jurisdictional statute also confirms that state courts have jurisdiction of certain crimes committed on Indian reservations. The statute, 18 U.S.C. Section 1152, reads
“Except as otherwise expressly provided by law, the general laws of the United States as to the punishment of offenses committed in any place within the sole and exclusive jurisdiction of the United States, except the District of Columbia, shall extend to the Indian Country.
“This section shall not extend to offenses committed by one Indian against the person or property of another Indian, nor to any Indian committing any offense in the Indian country who has been punished by the local law of the tribe, or to any case where, by treaty stipulation, the exclusive jurisdiction over such offenses is or may be secured to the Indian tribes respectively.”
18 U.S.C. Section 1152 (1983).
According to the United States Supreme Court:
“Despite the statute’s broad language, it does not apply to crimes committed by non-Indians against non-Indians, which are subject to state jurisdiction.”
Wheeler, 435 U.S. at 325 n. 21, 98 S.Ct at 1087 n. 21. Thus, Oliphant’s rule mandating federal jurisdiction for crimes committed by non-Indians against Indians or their property does not apply unless Section 61-7-108, MCA, can be classified as a crime against an Indian or an Indian’s property.
The difficulty here is in classifying an offense under Section 61-7-108, MCA, as one by a non-Indian against an Indian or an Indian’s property. The State argues that the offense constitutes a victimless crime because it makes the perpetrator culpable irrespective of injury to person or property. In this situation, the State argues that the following analysis applies:
“[I]n determining whether a state may properly assert its authority over the conduct of non-Indians engaging in activity on the reservation, the court should analyze the nature of the state, federal, and tribal interests at stake. See White Mountain Apache Tribe v. Bracker, 448 U.S.136, 144-45, 100 S.Ct. 2578, 2584, 65 L.Ed.2d 665, 673 (1980).
“Prosecution of the possessory offense involved in the case at bar within the state courts involves no infringement on tribal sovereignty. Burrola is a non-Indian whose alleged offense did not arise out of contact with an Indian or Indian property.”
State v. Burrola (App. 1983), 137 Ariz. 181, 669 P.2d 614, 615. Other courts facing inquiries concerning “victimless” crimes, such as DUI or possession of marijuana, have analyzed the issue in a similar manner. See State v. Warner (1963), 71 N.M. 418, 379 P.2d 66; State v. Herber (App. 1979), 123 Ariz. 214, 598 P.2d 1033. And one authority has explained that:
“Under the logic of United States v. McBratney and Draper v. United States, victimless crimes by non-Indians appear to be subject to state jurisdiction. Those cases held that jurisdiction over crimes by non-Indians against non-Indians in Indian country rests with the state. However, their reasoning and their holdings appear broad enough to encompass non-Indian victimless offenses as well. McBratney concluded that the state maintained jurisdiction over all white persons on the Ute reservation, and Draper held that the state had not been deprived of the power to punish crimes committed on a reservation ‘by other than Indians or against Indians.’ In practice, victimless offenses by non-Indians have been treated in a number of cases as subject to state jurisdiction under McBratney and Draper, on the theory that neither Indians nor their property are affected.” M.B. West, Manual of Indian Criminal Jurisdiction 99 (1977 & Supp. 1982).
Thomas responds that the crime charged here distinguishes this case from decisions by other courts on victimless crimes. Thomas points out that in Burrola, for example, the court described the crimes as not arising from contact with Indian property. Here, Thomas argues, the crime did arise from contact with Indian property, to wit, Parkers’ calf.
First, we agree with the State and hold that the crime in question cannot be characterized as an offense against Indian property. The allegedly criminal act is the failure to discharge a reporting duty, not infliction of damage upon property belonging to an Indian. Thus, the offense is analogous to crimes other courts classify as victimless, and it should be analyzed as a victimless crime for the purposes of determining jurisdiction.
In determining jurisdiction for victimless crimes, we agree that federal, tribal, and state interests should be examined. Burrola, 669 P.2d at 615. We hold here that the federal and tribal interests in providing a federal forum fail to outweigh the State’s strong interest in traffic safety. Our reasoning is based on the fact that the policy of providing a federal forum where criminal prosecutions pit the interests of non-Indian offenders against Indian victims is not furthered where, as here, the connection to destruction of Indiem property is only tangential to the crime charged. Under these circumstances, the State’s interests in highway safety control the issue. Thus, we reverse and remand for further proceedings.
Thomas, without raising the issue in the lower court, and without cross-appealing, has improperly attempted to claim denial of the right to a speedy trial on this appeal. See Rule 14, M.R.App.P. We refuse to review the issue.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, GULBRANDSON and HUNT concur.
|
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MR. JUSTICE SHEA
delivered the opinion of the Court.
Gate City Savings and Loan Association of Fargo, North Dakota (“Gate City”) and Fidelity Savings and Loan Association of Great Falls, Montana (“Fidelity”) appeal from judgment of the Lewis and Clark County District Court in a proceeding for judicial review of an administrative hearing before the Department of Business Regulation (“Department”). The District Court reversed the Department’s approval of a proposed merger between Gate City and Fidelity because the statute governing merger of building and loan associations, section 7-113.2, R.C.M.1947, now section 32-2-231 MCA, (formerly section 7-113(22), R.C.M.1947) contained an unconstitutional delegation of legislative power. For the reasons set forth below, we affirm.
The facts leading to this appeal are as follwos: In 1972 Gate City applied to the Director of the Department of Business Regulation (“Director”) for approval to merge with Fidelity and with Glen-dive Building and Loan Association of Glendive, Montana (“Glen-dive”). The application for merger was made pursuant to section 7-113(22), R.C.M.1947, which provided:
“. . . Any two (2) or more building and loan associations, by and with the consent and approval of the superintendent of banks, [now known as the Director of the Department of Business Regulation] may consolidate and unite and become incorporated in one (1) body, with or without any dissolution or division of the funds or property of any such association, or any such association may transfer its engagements, funds and property to any like association upon such terms as may be agreed upon by a majority vote of the respective board of directors, and ratified by a two-thirds (%) vote of the shares present and voting in person or by proxy at a special meeting or meetings of the stockholders of the respective associations convened for that purpose, upon notice given as provided by law, said notice to state the object of the meeting. No such transfer shall prejudice any right of any creditor of such association.” (Emphasis and bracketed material added.)
(This statute in its current, amended form is found at section 7-113.2, R.C.M.1947, now section 32-2-231 MCA. For purposes of the issues considered herein, the amended version is identical to section 7-113(22).)
Being uncertain on how to treat the proposed merger application, the Director requested an opinion from the State Attorney General. On October 3, 1972, the Attorney General issued a formal opinion that Montana law prohibits the proposed merger because operation of branch offices in this State by foreign savings and loan associations is forbidden. 34 Op.Att’y.Gen. No. 53 (1972). The Department therefore denied Gate City’s application for merger.
Shortly thereafter, Gate City commenced a declaratory judgment action in Lewis and Clark County District Court seeking statutory construction of section 7-113(22) in light of the proposed merger and the Attorney General’s opinion. Glendive and Fidelity were joined as plaintiffs and the Director was named as the defendant. The Montana Savings and Loan League, First Federal Savings and Loan Association of Great Falls, Montana, and Great Falls Federal Savings and Loan Association of Great Falls, Montana (hereinafter “opponents”) intervened in opposition to the proposed mergers. On January 23, 1974, the District Court overturned denial of Gate City’s application. The Director and opponents appealed and the judgment was affirmed by this Court in Gate City v. Pitts (1975), 166 Mont. 411, 533 P.2d 1083.
Gate City reapplied to the Department, and the Director held a prehearing conference for the purpose of “defining issues, determining witnesses and agreeing upon stipulations.” The report of this prehearing conference shows that “counsel for the various parties and the department were unable to reach any significant agreement as to what constitutes the exact issues.” The Department nonetheless stated its position that “since there are no specific statutory guidelines the issues involved are necessarily broad.” The Department refused to adopt the various specific criteria proposed by the opponents. The only substantive criteria stated was whether it would be in the public interest to grant or deny the proposed mergers.
Hearings began on September 23, 1975 and lasted a total of seven days. The Director finally issued his lengthy findings, conclu sions and order on July 19, 1976 wherein he concluded that the proposed merger of Gate City and Fidelity was in the public interest but the proposed merger of Gate City and Glendive was not. The Department therefore approved the Gate City/Fidelity merger and disapproved the Gate City/Glendive merger.
Inquiries were made on if and when petitioners for rehearing would be entertained. The Department responded on August 11, 1976 with a detailed time schedule for petitions, briefing and argument. All specified deadlines were followed by both opponents and applicants, Gate City and Fidelity. The Department denied the petitions for rehearing on November 1, 1976.
On November 30, 1976, opponents brought the present suit for judicial review of the Department’s findings and conclusions in Lewis and Clark County District Court. Gate City, the Director and Fidelity all filed responses to the petitions for judicial review that did not question the timeliness of the petitions, but rather contended that the opponents’ petitions failed to state any of the grounds prescribed in section 82-4216(7), R.C.M.1947, now section 2-4-704(2) MCA, for reversal or modification of the Department’s rulings. After extensive briefing and oral argument, the court issued an order reversing the Department’s ruling insofar as it purported to approve the proposed merger of Gate City and Fidelity. The Department’s ruling was reversed on the ground that the statute permitting such mergers, section 7:113.2, contained an unconstitutional delegation of legislative power to the Department by reasons of a lack of statutory standards to guide its discretion. The court also stated “even if it be assumed that the legislative oversight might have been cured by the administrative agency, it is plain that such was not accomplished here.”
Gate City and Fidelity appeal from this order and present the following issues for our consideration:
(1) Whether the District Court erred in ruling that opponents’ petitions for judicial review were timely filed under section 82-4216(2)(a), R.C.M.1947, now section 2-4-702(2)(a) MCA.
(2) Whether opponents were estopped from challenging the con stitutionality of section 7-113.2, R.C.M.1947, now section 32-2-231 MCA.
(3) Whether the District Court erred in holding section 7-113.2 constitutes an unconstitutional delegation of legislative power due to the absence of standards.
(4) If an agency may supply appropriate standards in the absence of statutory standards, were adequate standards provided here?
Gate City, alone, insists this case can be decided on a non-constitutional ground; that the District Court was without jurisdiction because the opponents’ petitions for judicial review were' not timely filed in accordance with section 82-4216(2)(a), R.C.M. 1947, now section 2-4-702(2)(a) MCA.
In pertinent part, this statute provides:
“Proceedings for review shall be instituted by filing a petition in district court within 30 days after service of the final decision of the agency or, if a rehearing is requested, within 30 days after the decision thereon.”
Gate City argues that this provision does not create a right to petition for rehearing; it merely accommodates such right where adopted pursuant to administrative rulemaking procedure. Gate City relies on Koehn v. State Bd. of Equalization (1958), 166 Cal.App.2d 109, 333 P.2d 125, 128 for the “general rule” that an administrative agency has no inherent power to rehear its decision. While this may be the general rule in California, it is not nationally. See, 73 C.J.S. Public Administrative Bodies and Procedure § 156, n. 82; Annot., 73 A.L.R.2d 939. The annotation summarizes:
“Some authorities have expressed the view that, like a court of general jurisdiction, an administrative agency exercising functions of a judicial nature has the inherent power to grant a rehearing or otherwise to reconsider a previous decision. Other authorities deny the existence of such power and proceed on the theory that the power does not exist, in the absence of specific statutory authority. An intermediate position is taken by those authorities which consider the controlling statute as a whole with a view to determining whether it was the intention of the legislature to confer the power of reconsideration upon the agency.” (Footnotes omitted.) 73 A.L.R.2d at 942-43.
Notably, even the California court more recently stated that all administrative bodies have inherent power to reconsider their decisions unless it is such that it may not be set aside or unless reconsideration is precluded by statute. In Re Fain (1976), 65 Cal.App.3d 376, 135 Cal.Rptr. 543, 550.
Thus far, this Court has not ruled on whether an administrative agency has inherent power to reconsider its decision. The facts of the instant case do not require that we do so. The Department’s final decision and order of July 19, 1976 stated: “You are entitled to judicial review of the Final Decision and Order pursuant to and in accordance with the provisions of section 82-4216, R.C.M. 1947.” On August 11, 1976, the Department responded to inquiries about possible rehearing by issuing a detailed time schedule for petitions, briefing and argument. Gate City participated in opposing the petitions for rehearing and did not raise the jurisdictional issue cited here. Its position at that time was stated in its brief in opposition to rehearing as follows: “While section 82-4216, R.C.M. 1947, indicates that a rehearing may be requested, we submit that it is within the sound discretion of the agency decision-maker, in this instance the Director of the Department, as to whether or not to grant any such rehearing.” It seems Gate City interpreted section 82-4216(2)(a) as creating a right to petition for rehearing (as did opponents and the Department). Given this factual matrix and the language of section 82-4216(2)(a), the District Court did not err in concluding that the opponents’ petitions for judicial review were timely.
Under issue two, Gate City contends opponents are estopped from challenging the constitutionality of section 7-113.2 for their failure to raise the issue when it first came before this Court in Gate City v. Pitts, supra. Although not mentioned, Gate City is apparently referring to the doctrine of res judicata by which all questions that might have been litigated under the issues formed (as well as those actually adjudged) in a prior appeal must be taken as at rest forever. 5B C.J.S. Appeal arid Error § 1822; Phalen v. Rilley (1970), 156 Mont. 91, 475 P.2d 998. Here, it is important to bear in mind the nature and scope of proceedings leading to this and the prior appeal. The 1972 proposed merger was denied on the basis of an Attorney General’s opinion that foreign savings and loan associations are prohibited from merging with domestic associations. Gate City sought declaratory judgment in District Court for construction of section 7-113(22), R.C.M.1947, in light of their application and the Attorney General’s opinion. It was the District Court’s decision, reversing the Department’s ruling, that was appealed by the Director and joined in by the opponents. On the appeal, the scope of review was limited to correction of errors committed by the District Court (See, section 93-8907, R.C.M.1947, now section 27-8-312 MCA, and Rule 2, Mont.R.App.Civ.P.), and Gate City framed the issue. That issue was the scope of section 7-113(22), not its implementation in a particular case.
Constitutional issues should generally be raised at the earliest opportunity. Johnson v. Doran (1975), 167 Mont. 501, 511, 540 P.2d 306, 311. Here, the earliest opportunity was in 1975, when the Department first implemented the provision in the manner giving rise to the constitutional challenge.
Gate City also argues that opponents are estopped from questioning the constitutionality of section 7-113.2 by actively supporting passage of the statute during the 1977 legislative session. The 1977 amendment to section 7-113.2 had no bearing on the constitutionality of that portion of the provision granting the Department power to approve or disapprove applications for merger. As already indicated, section 7-113.2, enacted in 1977, only changed section 7-113(22) to the extent that it restricted applications for merger to domestic savings and loan associations. There is nothing inconsistent in opponents’ support of a statutory amendment precluding merger by foreign savings and loan associations and the present constitutional challenge.
The dispositive issue in this case is whether section 7-113.2, R.C.M.1947, now section 32-2-231 MCA, contains an unconstitutional delegation of legislative power. The central theme of Gate City’s and Fidelity’s argument against finding section 7-113.2 an unconstitutional delegation of legislative power is that the trend is away from requiring that statutory standards or guides be specified and toward finding the establishment of procedural safeguards sufficient for constitutional purposes. While this may be the trend under federal law and in some states, it is not Montana’s position.
All the cases dealing with the nondelegation doctrine in Montana have done so with respect to the Montana Constitution. Article III, section 1, of the 1972 Montana Constitution (formerly Article IV, section 1, 1889 Montana Constitution) specifically states:
“. . . Separation of powers. The power of the government of this state is divided into three distinct branches — legislative, executive, and judicial. No person or persons charged with the exercise of power properly belonging to one branch shall exercise any power properly belonging to either of the other, except as in this constitution expressly directed or permitted.”
Two recent cases clarify what is and is not an overly broad delegation of legislative power in Montana. In Douglas v. Judge (1977), 174 Mont. 32, 568 P.2d 530, a statute authorizing the Department of Natural Resources to make loans to farmers and ranchers who proposed “worthwhile” renewable resource development programs was held to be insufficient under the test set out in Bacus v. Lake County (1960), 138 Mont. 69, 354 P.2d 1056. The Court articulated the test by quoting the following excerpt from Bacus:
“In the case of State v. Stark, 100 Mont. 365, 371, 52 P.2d 890, 892, this court has stated:
“ ‘Delegation of power to determine who are within the operation of the law is not a delegation of legislative power . . . But it is essential that the Legislature shall fix some standard by which the officer or board to whom the power is delegated may be governed, and not left to be controlled by caprice.’
“We agree with this statement of the law and go further by saying that the standard must not be so broad that the officer or board will have unascertainable limits within which to act.” Douglas v. Judge, 568 P.2d at 534 (quoting Bacus v. Lake County, 354 P.2d at 1062.)
In State ex rel. Department of Health and Environmental Sciences v. Lincoln County (1978), 178 Mont. 410, 584, P.2d 1293, the Clean Air Act, which authorized the Department of Health and Environmental Sciences to establish limits on pollutant emissions and to prohibit facilities causing or contributing to air pollution, was held not to be an unconstitutional delegation of legislative power. This Court stated: “While the powers of the Board are expressed in broad and general language, they necessarily must be as air pollution control is an emerging field of environmental protection for which detailed and precise standards have not yet been fully developed.” State Dept. of Health and Environmental Sciences v. Lincoln County, 584, P.2d at 1296.
The instant case presents a delegation of legislative power that provides no standards or guidelines either expressed or otherwise ascertainable. There is nothing in the statute “to enable the agency to know its rights and obligations.” Huber v. Groff (1976), 171 Mont. 442, 457, 558 P.2d 1124, 1132 (quoting Milk Control Bd. v. Rehberg (1962), 141 Mont. 149, 161, 376 P.2d 508, 515.)
Gate City attempts to characterize the statute as within the qualification enunciated in Altop v. City of Billings (1927), 79 Mont. 25, 35, 255 P.11, 14:
“. . . that where it is impracticable to lay down a definite or all-comprehensive rule, or where the ordinance relates to the administration of a police regulation and is necessary to protect the general welfare, morals and safety of the public, it is not essential to the validity of the ordinance that it prescribe all the conditions upon which such license shall be granted or refused.” (Emphasis added.)
However, the statute in the instant case provides absolutely no standards, guides or conditions.
Gate City also argues that the ascertainable standards are that the merger be made “upon terms agreed upon by a majority vote of the respective board of directors, and ratified by a two-thirds vote” of the shareholders (section 7-113.2). This contention ignores the clear meaning of the statute. The majority vote ratification requirement and the approval of the Department requirement are obviously independent prerequisites for merger.
Finally, Gate City urges that any constitutional infirmity in the statute was cured by the Department’s supplying appropriate standards to govern the hearing. Relying on S. E. C. v. Chenery Corp. (1947), 332 U.S. 194, 67 S.Ct. 1575, 91 L.Ed. 1995, Gate City argues that in unforseeable situations involving a statutory delegation of legislative power, determination on an ad hoc or case-by-case basis is appropriate.
In Chenery, the contention was that the agency could not apply a general standard it had formulated for the first time in that proceeding, but instead, must promulgate new standards through its rulemaking procedures. See, N. L. R. B. v. Bell Aerospace Co. (1974), 416 U.S. 267, 292, 94 S.Ct. 1757, 1770, 40 L.Ed.2d 134, 153. Thus, Chenery more closely resembles Altop v. City of Billings, supra, where at least some standards were provided by the legislature. Here, however, we find no statutory standards or guidelines from which the Department could extrapolate new ones. Indeed, the preliminary prehearing conference report shows that the opponents desired ad hoc formulation of standards sufficient to apprise them of the relevant issues before the hearing. The only standard announced was “public interest.” It was only after the hearing, when the Department issued its findings and conclusions that the substantive meaning of that term was clarified.
Section 7-113.2, R.C.M.1947, now section 32-2-231 MCA, contains an overly-broad delegation of legislative power and is hereby declared unconstitutional.
The judgment of the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEEHY concur. .
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MR. JUSTICE McDONOUGH
delivered the Opinion of the Court.
This appeal concerns a dispute over the renewal of appellant Beck’s teaching contract with Cascade County School District (School District). Beck claimed tenure rights denied by the School District. The County Superintendent initially ruled in favor' of Beck. The State Superintendent reversed, and the District Court affirmed the State Superintendent. Beck appeals this decision.
The School District cross-appeals the issue of whether Beck’s collective bargaining agreement (CBA) is admissible. The County Superintendent and the State Superintendent agreed that the CBA was irrelevant, and excluded the document. The District Court reversed and allowed the CBA, but interpreted the CBA against Beck.
We reverse the District Court on the tenure issue, and remand for further proceedings. In regard to the admissibility of the CBA, we affirm the District Court in that we agree that the CBA is relevant. However, we hold that the proper remedy for the County Superintendent’s exclusion of the CBA is to remand to the County Superintendent to consider the effect of the CBA on Beck’s tenure rights.
The issue on appeal is whether the District Court abused its discretion in sustaining the decision of the State Superintendent of Public Instruction that appellant Beck was a nontenured teacher in 1985-86?
The issue on cross-appeal is whether the District Court erred in overruling the County Superintendent’s decision that the CBA was inadmissible?
The relevant facts and procedure are as follows: Beck achieved tenure by teaching from 1980 to 1984. She was not rehired for the 1984-85 school year, but she was rehired for the 1985-86 school year.
Beck testified before the County Superintendent that at the end of the 1984 school year she was let go as part of a reduction in force (RIF). Beck also contended that she was recalled pursuant to her collective bargaining agreement when the School District rehired her in 1985. School District Representative Jerry Hatch testified that Beck’s employment and tenure were terminated in 1984, and that she was simply reemployed, without tenure, for the 1985-86 school year.
In proceedings before the County Superintendent, Beck attempted to bolster the contention that she was a tenured teacher during the 1985-86 school year by pointing to the resolution of a grievance she had filed against the School District during the 1985-86 school year. In the grievance Beck had claimed she was entitled to reinstatement of her past sick leave and seniority, and the School Board had granted Beck’s demands.
When Beck sought to testify on the grievance in the proceedings before the County Superintendent, the School District objected on relevancy grounds, and the County Superintendent allowed the testimony over the objection. However, when President of the Great Falls Education Association Terry Browning attempted to testify on the CBA and the grievance, the School District objected and the County Superintendent sustained the objection ruling that the agreement was irrelevant to the tenure issue.
In addition to the disagreements over the relevance and effect of the grievance and the CBA, the parties disagree on the proper interpretation of Section 20-4-203, MCA. The County and State Superintendents, as well as the District Court, also have differing views.
The County Superintendent concluded that Section 20-4-203, MCA, controls the termination of the services of tenured teachers, but not the termination of tenure itself. The State Superintendent reversed holding that both tenure and services may be terminated pursuant to Section 20-4-203, MCA, and that the method for termination prescribed by Section 20-4-203, MCA, (the trustees vote to terminate), cannot be modified by contract. Thus, according to the State Superintendent, the CBA was irrelevant, and Beck waived her right to contest loss of tenure when she failed to object to her termination in 1984.
The District Court affirmed on different grounds. First, the District Court held the CBA relevant, and after analyzing the agreement, the lower court concluded that termination of Beck’s tenure may be deduced from reading the CBA together with the letter noticing Beck that her services would not be needed for the 1984-85 school year. The lower court reasoned that because the CBA differentiated be tween non-renewal, and reduction in force (or layoff), and inasmuch as the letter noticing that the contract would not be renewed used the term non-renewal instead of reduction in force or layoff, Beck’s tenure was terminated.
The District Court also analyzed the effect of Section 20-4-203, MCA, on the issue of termination of tenure as opposed to termination of services. According to the District Court, Beck could not be deemed a tenured teacher in 1986 because tenured teachers are elected from year to year unless terminated. See Section 20-4-203, MCA. Beck was not elected from year to year following the non-renewal of her contract, and thus she was not a tenured teacher.
Broadly speaking, “a contract made in violation of a statute is illegal, but the true rule seems to be that the question is one of legislative intent”. 17 C.J.S. Contracts Section 201 (1963). The School District contends that the State Superintendent correctly ruled that Section 20-4-203, MCA, prohibits recall rights for tenured teachers terminated by vote of the trustees. We reject this interpretation of the statute.
This Court has previously stated that:
“Tenure for teachers is unique in public contracts of employment. Its basis is academic freedom; freedom within the law to teach the truth and to stimulate the thinking of free men in a free society without fear of reprisal. Its scope assures, with certain exceptions, both continuing employment and economic security. Our society has long since determined the desirability of teacher tenure and this state has enacted legislation to implement it as public policy.”
Sibert v. Community College of Flathead County (1978), 179 Mont. 188, 191, 587 P.2d 26, 28. We hold here that given the policy of providing for tenure; i.e., academic freedom, continuing employment, and economic security, a school district may contract with a teacher’s union to allow retention of tenure without violating the statute. Thus, the District Court correctly reversed the County Superintendent and the State Superintendent on the relevancy of the CBA.
After finding the CBA admissible, the District Court interpreted what it found to be the pertinent parts of the CBA. The parties had no real opportunity to argue the effect of the CBA. The parties had no real opportunity to submit what may be admissible evidence relating to the CBA. Under these circumstances, the District Court abused its discretion in not remanding the case to the County Superintendent. Section 2-4-704, MCA. Thus, we remand to the County Superintendent for resolution of the issue of Beck’s tenure rights.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, SHEEHY, WEBER, HUNT and GULBRANDSON concur.
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MR. JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal from an order of the District Court, Sixteenth Judicial District, Custer County, Montana. Following a bench trial the court found the Custer County Commissioners had not drawn the proposed new commission district boundaries as compactly and as equal in area as possible in violation of Section 7-4-2102, MCA; that the proposed new districts are void and the prior commissioner districts remain valid; and that Bob Barthelmess be declared the duly elected county commissioner from Commissioner District # 2. We affirm in part, reverse in part, and remand for further action consistent with this opinion.
In October, 1983, pursuant to Section 7-4-2102, MCA, the Custer County Commissioners redefined the commissioner district boundaries using the 1980 federal decennial census figures. These proposed new districts were reviewed and approved by the Honorable A. B. Martin, the only District Judge residing in the county. A metes and bounds description was properly filed and recorded in the office of the Custer County Clerk and Recorder October 31, 1983.
The new boundaries changed the size and shape of the commissioner districts, particularly increasing the size of District # 1. The boundary lines are not straight, especially within the city of Miles City, but this is not at issue. The boundaries outside the city are easily identifiable, and there is no evidence of any gerrymandering. The City-County Planning Office was the only agency in the county which subscribed to the complete Federal Census Reports, including maps and all the data that came with them. Earlier they had reapportioned the city wards and more or less took it upon themselves to redraw the commissioner district lines. The objective of the planning board was to create simple identifiable districts which were as equal in population as possible. Area was not a major consideration.
On March 20, 1984, Mr. Barthelmess, plaintiff-respondent in this action, filed for the office of County Commissioner from Commissioner District #2, notwithstanding he resided in Commissioner District #3 as result of the new boundary lines. There was no vacancy at the time in Commissioner District #3, as the term of the incumbent, Mr. Bruce Bergerson, Sr., of Miles City, had not expired. Mr. Barthelmess won the Democratic primary election and the general election. Following the general election, Tonia R. Stratford filed an action in District Court against Mr. Barthelmess alleging he was not a resident of the commissioner district from which he had run, in violation of Title 13 of the Montana Election Laws. Mr. Barthelmess sued the Custer County Commissioners, alleging the commissioner districts of October 31, 1983, were improperly created because they did not meet the requirements of Section 7-4-2102, MCA, that districts be as compact and equal in area as possible. The two causes were combined and a trial was held January 10, 1985. Stratford and the County Commissioners appeal.
The Court will consider the following issues:
(1) Whether Section 7-4-2102, MCA, calling for commissioner districts to be as compact and equal in population as possible means mathematical exactness or whether county commissioners are allowed discretion in determining boundaries.
(2) Whether the commissioner districts which are not as compact and equal in area as possible are void as violating Section 7-4-2102, MCA.
(3) Whether the commissioner districts created in 1974, which did not meet the requirements of Section 7-4-2102, MCA, be reinstated.
(4) Whether a county commissioner can be elected from a commissioner district in which he did not reside at the time of filing his declaration of nomination.
There are four statutory requirements to be met when dividing a county into commissioner districts: compactness, equality of population, equality of area, and approval by the district judge or judges in the county. In this case it does not appear an attempt was made to satisfy both equality of area and equality of population. Mr. Barthelmess contends the new commissioner districts are void because they do not meet the criteria in Section 7-4-2102. Specifically they are not as compact and equal in area as possible. Mr. Richard M. Jones, director of the city-county planning office admitted his office was unaware of the statutory requirement of compactness of area which was not considered when the district lines were drawn. This is not to suggest the statute permits no discretion on the part of the county commissioners. The ultimate result of such a claim would render county commissioners incapable of effective decision making. Acknowledging county commissioners have a limited amount of discretion, mathematical exactness when complying with the statute is required only when this is reasonably possible.
“The meaning of a given term employed in a statute must be measured and controlled by the connection in which it is employed, the evident purpose of the statute and the subject to which it relates.” Fletcher v. Paige (1950), 124 Mont. 114, 120, 220 P.2d 484, 487. Although it is doubtful mathematical exactness is reasonably possible in this case, compliance with the statute requires, at minimum, an attempt to equalize both area and population.
Boundary location is important because it determines who is eligible to run for office by virtue of residency in a given district. The reason for the residency requirement is not to satisfy the one-man-one-vote rule announced in Baker v. Carr (1962), 369 U.S. 186, 82 S.Ct. 691, 7 L.Ed.2d 663, because all the voters in Custer County have the opportunity to vote for a candidate for county commissioner. Rather, it is a basis of residence for candidates. Research does not reveal the legislative intent in drafting the statute, but the effect of the statute is an attempt to assure a geographic distribution of candidates for the office of county commissioner. It is essential the integrity of the lines be maintained to protect potential candidates.
Redistricting decisions require a balancing test among competing interests. McBride v. Mahoney (Mont. 1983), 573 F.Supp. 913. Although each interest must be weighed carefully, the importance of population when district lines are drawn has been emphasized numerous times by the United States Supreme Court. “[The] Constitution permits no substantial variation from equal population in drawing districts for units of local government having general government powers over the entire geographic area served by the body.” Avery v. Midland County (1968), 390 U.S. 474, 484-485, 88 S.Ct. 1114, 1120, 20 L.Ed.2d 45, 53. The overriding objective must be substantial equality of population among the various districts; however variations from a pure population standard can be justified by the recognition of natural or historical boundary line. Indiscriminate disregard for these natural boundaries can result in partisan gerrymandering. Reynolds v. Sims (1964), 377 U.S. 533, 578-79, 84 S.Ct. 1362, 1390, 12 L.Ed.2d 506, 537.
There is considerable evidence the population among districts has been equalized. It is equally clear the area of the districts has not. The Court affirms the District Court’s conclusion the Custer County Commissioners and the Custer County Planner acted in good faith, but being unaware of the provisions of Section 7-4-2102, MCA, the planner was not concerned with compactness or equality of the proposed new commissioner districts. The purported commissioner districts of 1983 are not as compact or as equal in area as possible and are therefore void. Compliance with Section 7-4-2102 requires both equality of population and of area, but does not require mathematical exactness. The boundary lines approved October 31,1983, do not meet the statutory requirements. The districts must be redrawn to comply with the statute, consistent with this opinion. Both district judges of the Sixteenth Judicial District must review and approve the plan before it is filed and recorded.
Mr. Barthelmess did not reside in the commissioner district from which he ran and was elected. The statute is clear and unambiguous:
“(1) At each general election, the member or members of the board of county commissioners to be elected shall be selected from the residents and electors of the district or districts in which the vacancy occurs, but the election of such member or members of the board shall be submitted to the entire electorate of the county.
“(2) No one shall be elected as a member of said board who has not resided in said district for at least 2 years next preceding the time when he shall become a candidate for said office.”
Section 7-4-2104.
We agree with the District Court’s conclusions of law as to the boundary lines:
“2. That the Custer County Commissioners and the Custer County Planner acted in good faith, but being unaware of the provisions of Section 7-4-2102, MCA, the Planner was not concerned with compactness nor with equality of area of the proposed new Commissioner Districts.
“3. The purported Commissioner Districts of 1983, are not as compact nor as equal in area as possible, and are therefore void, and the prior Commissioner Districts remain as valid Commissioner Districts.”
We modify conclusion No. 5 declaring Bob Barthelmess the duly elected commissioner of District #2, to permit him to hold office until the next general election when a candidate will be elected for the remainder of the term involved. In the meantime, the county is to be redistricted in accordance with the provisions of Section 7-4-2102, MCA, and the holding of this opinion.
The prayer for mandamus is denied. Each party shall bear its own costs.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES MORRISON, WEBER, SHEEHY, GULBRANDSON and HUNT concur.
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PER CURIAM.
It appearing from the record that plaintiffs’ motion in the district court for an order extending, on good cause shown, time for payment of taxes, penalties and interest, and that the district court was vested with jurisdiction to grant such motion, relators’ application for writ of supervisory control is denied and the proceedings ordered dismissed.
|
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JUSTICE ERDMANN
delivered the Opinion of the Court.
Defendant Antonio R. Leyba appeals from a jury verdict of the Second Judicial District Court, Silver Bow Comity, finding him guilty of deliberate homicide. We affirm.
The issues on appeal are as follows:
1. Was the defendant denied the effective assistance of counsel?
2. Did the District Court err in not instructing the jury sua sponte on the elements of mitigated deliberate homicide?
3. Was there sufficient evidence to support the jury verdict?
FACTS
On January 2, 1994, a Butte resident discovered that a group of teenagers had held an unauthorized drinking party in his home while he was away for the New Year’s holiday. He later determined that three of his rifles were missing and assumed the teenagers had stolen them. He directed his son-in-law, defendant Antonio R. Leyba, to see if he could find out the serial numbers on the missing rifles. Actually the rifles had not been stolen by the teenagers, but had been pawned by Leyba at the Mountain Man pawn shop in Butte.
On the morning of January 3, 1994, a clerk in a store adjacent to the pawn shop heard shouting and other noises coming from the pawn shop. The clerk called the police after being told by a man who had come into her shop that there was a “mess” next door. The two police officers who arrived on the scene discovered that the pawn shop clerk, Charlie Miller, had been bludgeoned and stabbed to death. There was a large amount of blood on the floor which contained shoe prints. The officers discovered a handle from a hatchet that appeared to have blood on it and eventually discovered the head to the hatchet on a top shelf in the back room. Officers also found a bloody fingerprint which the Forensic Sciences Division of the Montana Department of Justice later positively identified as Leyba’s fingerprint.
When officers questioned Leyba, he told them he was at the pawn shop on the morning of January 3, 1994, to get serial numbers for rifles, but because the store was crowded he left to check with other sport shops in town. After officers told Leyba about the physical evidence they had collected, including bloody shoe prints which matched his athletic shoes, and his bloody fingerprint, Leyba changed his story. He said that he saw two men take Miller into the back room and beat him up, but that after seeing the body he decided to leave. After officers told Leyba his story was not credible, he admitted the murder.
When officers searched Leyba’s residence and vehicle they discovered the rifles, a three-inch skinning knife, an eleven-inch knife, one framing hammer, one claw hammer, athletic shoes and a cordless telephone, all of which had human blood on them. Although he admitted committing the murder, Leyba claimed he had acted in self-defense. Leyba is 6’ tall and weighs approximately 200 pounds. He suffered no wounds in the altercation. Miller, who was approximately 5’4” tall and weighed 135 pounds, suffered various defensive wounds to his hands and wrists in addition to the fatal blows.
On January 27,1994, Leyba was charged with deliberate homicide pursuant to § 45-5-102(1)(a), MCA (1993). On June 20-23, 1994, he was tried by a jury and found guilty. He was sentenced to 100 years in prison, plus an additional 10 years for the use of dangerous weapons in commission of the offense, with 25 years suspended. The District Court denied Leyba’s post-trial motion to alter or amend the judgment and this appeal followed.
ISSUE 1
Was the defendant denied the effective assistance of counsel?
Leyba claims his Sixth Amendment right to effective assistance of counsel was violated because his defense counsel only offered a deliberate homicide jury instruction. On appeal, Leyba contends his defense was based on mitigating circumstances and his defense counsel should have offered an instruction which would have allowed the jury to consider whether he was guilty of mitigated deliberate homicide.
We review claims of ineffective assistance of counsel based on a two-part test set forth in Strickland v. Washington (1984), 466 U.S. 668, 104 S. Ct. 2052, 80 L. Ed. 2d 674. The defendant must first establish that counsel’s performance was deficient in that counsel did not act within the range of competence demanded of attorneys in criminal cases. Strickland, 466 U.S. at 687, 104 S.Ct. at 2064; Walker v. State (1993), 261 Mont. 1, 6, 862 P.2d 1,4; State v. Senn (1990), 244 Mont. 56, 59, 795 P.2d 973, 975. To satisfy the second prong of the test, the defendant must establish that the deficient performance prejudiced him so as to deprive him of a fair trial. Strickland, 466 U.S. at 687, 104 S.Ct. at 2064; Walker, 862 P.2d at 4. The defendant must prove both elements of the test and the burden is heavy on a defendant seeking to reverse a judgment on the grounds of ineffective assistance of counsel. Walker, 862 P.2d at 4 (citing State v. McColley (1991), 247 Mont. 524, 526, 807 P.2d 1358, 1360).
We addressed a claim similar to Leyba’s in State v. Sheppard (1995), 270 Mont. 122, 890 P.2d 754 (Sheppard II). After we affirmed the defendant’s conviction for sexual intercourse without consent in State v. Sheppard (1992), 253 Mont. 118, 832 P.2d 370 (Sheppard I), the defendant sought post-conviction relief in the district court. Sheppard claimed ineffective assistance of counsel because his attorney failed to offer a jury instruction on a lesser offense. In affirming the district court’s denial of post-conviction relief, we stated that “when defense counsel makes a tactical decision to forgo an instruction that is inconsistent with the defense, we will not find error supporting an ineffective assistance of counsel claim.” Sheppard II, 890 P.2d at 758 (citing State v. Johnson (1993), 257 Mont. 157, 163, 848 P.2d 496, 499). Furthermore, we have stated that in order to constitute ineffective assistance, acts of counsel “must stem from neglect or ignorance rather than from informed, professional deliberation.” State v. Paulson (1991), 250 Mont. 32, 44, 817 P.2d 1137, 1144-45.
The record indicates that Leyba’s defense at trial was that he killed Miller in self-defense. Defense counsel provided notice to the State that he would rely on a self-defense theory and that the issue for the jury would be whether the use of force by Leyba was justified. Defense counsel presented witnesses who testified that Leyba was a peaceful person and a good father and husband. Witnesses testified that Miller was in a bad mood on the morning he was killed. Defense counsel presented psychological testimony to explain that Leyba was faced with a “fight or flight” response to a life-threatening situation. Leyba claimed the brutal killing was an emotionally charged response to a violent attack by Miller. All of this evidence was consistent with Leyba’s self-defense claim.
Leyba also made it clear to the District Court that he did not want the jury to consider the mitigated deliberate homicide instructions. After the State had requested that the mitigated deliberate homicide instructions be withdrawn, the following exchange took place:
DEFENSE COUNSEL: I’ve spoken about this with my client, and we agree those will be withdrawn and we will not offer a mitigated deliberate—
TONY LEYBA: I want it deliberate. If they are going to find me guilty, I want it deliberate.
The District Court then withdrew the mitigated deliberate homicide instructions.
Leyba and his attorney made a tactical decision to seek absolute acquittal on the theory of self-defense. Such a decision was consistent with Leyba’s theory of self-defense and was a trial strategy based on informed professional deliberation. It was not the result of neglect or deficient performance on the part of defense counsel.
A similar situation was presented in Bashor v. Risley (9th Cir. 1984), 730 F.2d 1228, cert. denied (1984), 469 U.S. 838, 105 S.Ct. 137, 83 L.Ed.2d 77, where a defendant convicted of deliberate homicide argued that his trial counsel was ineffective for failing to give the jury the option of convicting him of negligent or mitigated deliberate homicide. In rejecting his argument, the Ninth Circuit stated as follows:
It is true that counsel did not offer a negligent homicide instruction and that he objected to the mitigated deliberate homicide instruction. The record discloses that counsel did so not out of ignorance of the law but as the result of a tactical decision that the jury should be forced to the choice of finding Bashor guilty of deliberate homicide or acquitting him outright. With the benefit of hindsight we know that this strategy was incorrect; however, it did not constitute ineffective assistance of counsel.
Bashor, 730 F.2d at 1241.
Now that hindsight demonstrates his trial strategy was not successful, Leyba seeks a second opportunity to try the case under a different theory. We will not, however, second-guess trial tactics and strategy. Walker, 862 P.2d at 4; State v. Johnson (1993), 257 Mont. 157, 163, 848 P.2d 496, 499. The performance of Leyba’s counsel was not deficient and was within the range of competence demanded of attorneys in criminal cases.
' Having determined that Leyba’s claim does not satisfy the first element of the Strickland test, it is unnecessary to analyze the second element of the test. We conclude that Leyba was not denied his constitutional right to effective assistance of counsel.
ISSUE 2
Did the District Court err in not instructing the jury sua sponte on the elements of mitigated deliberate homicide?
We review jury instructions in criminal cases to determine whether the instructions, as a whole, fully and fairly instruct the jury on the law applicable to the case. State v. Long (1995), [274 Mont. 228], 907 P.2d 945, 946. See also State v. Brandon (1994), 264 Mont. 231, 237, 870 P.2d 734, 737 (citing State v. Lundblade (1981), 191 Mont. 526, 529-30, 625 P.2d 545, 548).
Leyba claims it was error for the District Court not to instruct the jury sua sponte on the elements of mitigated deliberate homicide. He contends that the jury was faced with an all or nothing choice between conviction and acquittal. Leyba relies on Beck v. Alabama (1980), 447 U.S. 625, 100 S. Ct. 2382, 65 L. Ed. 2d 392, to argue that the evidence clearly weighs toward the mitigated charge and failure of the District Court to so instruct the jury violated his due process rights. However, in Beck the issue was an Alabama statute which prohibited the jury from considering a lesser included offense. Furthermore, four years following Beck the Supreme Court stated that:
Although the Beck rule rests on the premise that a lesser included offense instruction in a capital case is of benefit to the defendant, there may well be cases in which the defendant will be confident enough that the State has not proved capital murder that he will still want to take his chances with the jury. If so, we see little reason to require him ... to give the State what he perceives as an advantage — an opportunity to convict him of a lesser offense if it fails to persuade the jury that he is guilty of capital murder.
Spaziano v. Florida (1984), 468 U.S. 447, 456-57, 104 S. Ct. 3154, 3160, 82 L. Ed. 2d 340, 350.
In Sheppard I, the defendant, like Leyba, argued that the district court should have instructed the jury sua sponte on a lesser offense. There we stated that, upon request, a defendant is entitled to an instruction about a lesser offense if the evidence would permit a jury to find him guilty of the lesser offense and acquit him of the greater. Sheppard I, 832 P.2d at 373. The rule in Montana and in the majority of states is that if a request for such an instruction is not made, the appellate court will not overturn the conviction absent plain error. Sheppard I, 832 P.2d at 373. We held that
the prosecution and defense must have the option of foregoing a lesser charge instruction for strategic reasons.... Mandatory sua sponte jury instruction on lesser offenses is inconsistent with Montana law and our public policy of allowing trial counsel to conduct the case according to his or her own strategy ....
Sheppard I, 832 P.2d at 373.
In the present case, the record indicates that Leyba chose to take his chances that the jury would not convict him of deliberate homicide based on his theory of self-defense. Not only did Leyba fail to object to the State’s requested withdrawal of the mitigated deliberate homicide instructions, he stated on the record that if the jury was to find him guilty, he wanted it deliberate. Unlike Beck, where a state statute foreclosed the opportunity for the jury to consider a lesser offense, Leyba voluntarily crafted his own trial strategy to avoid the jury considering the lesser charge. He cannot now with the benefit of hindsight be heard to complain that the instructions were insufficient and that the result violates his due process rights.
We conclude that, as a whole, the jury instructions fully and fairly instructed the jury on the law applicable to the case. The District Court did not err in failing to instruct the jury sua sponte on the offense of mitigated deliberate homicide.
ISSUE 3
Was there sufficient evidence to support the jury verdict?
We review the sufficiency of the evidence to determine whether, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt. State v. Arlington (1994), 265 Mont. 127, 146, 875 P.2d 307, 318 (quoting State v. Cyr (1987), 229 Mont. 337, 339, 746 P.2d 120, 122).
Leyba argues there was insufficient evidence to support the jury verdict. He claims he did not have a motive to deliberately plan the death of Miller, nor did he have the criminal intent to kill Miller. Leyba’s argument is based upon mens rea requirements that are no longer the law in Montana.
Section 45-5-102(1)(a), MCA (1993), provides that “[a] person commits the offense of deliberate homicide if: (a) he purposely or knowingly causes the death of another human being....” The State is not required to prove motive, nor is it required to establish that the killing was premeditated. We have stated:
The State need not establish a specific purpose to kill. Nor must it show that death was the result of deliberation other than the deliberation implicit within the statutory definitions of “purposely” and “knowingly.”
State v. Weinberger (1983), 204 Mont. 278, 289-90, 665 P.2d 202, 208-09 (citing State v. Sharbono (1977), 175 Mont. 373, 392, 563 P.2d 61, 72-73). If the act which causes the death is done purposely or knowingly, deliberate homicide is committed even if death is not the intended result. State v. McKimmie (1988), 232 Mont. 227, 231-32, 756 P.2d 1135, 1138 (citing State v. Sigler (1984), 210 Mont. 248, 260, 688 P.2d 749, 755).
In Weinberger, we cited the following Compiler’s Comments to § 45-5-102, MCA, and then stated:
“ ‘Purposely’ ... is the most culpable mental state and implies an objective or design to engage in certain conduct, although not particularly toward some result. ‘Knowingly' ... refers to a state of mind in which a person acts, while not toward a certain objective, at least with full knowledge of relevant facts and circumstances. Together these terms replace the concepts of malice and intent... premeditation is no longer an element of homicide ....”
We agree. We have previously recognized the legislative changes in the requirements of mens rea. State v. Sharbono, supra, 175 Mont. at 392-394, 563 P.2d at 72-73; State v. Coleman (1978), 177 Mont. 1, 30-31, 579 P.2d 732, 750, cert. denied, 448 U.S. 914, 101 S.Ct. 34, 65 L.Ed.2d 1177. Here, defendant’s objection to Instruction No. 11 on the ground that it was incomplete is founded upon mens rea requirements that are no longer the law in Montana.
Weinberger, 665 P.2d at 209. Leyba’s arguments in regard to motive and premeditation are therefore without merit.
Leyba goes on to argue that there was no direct evidence which proved deliberate homicide. Evidence was presented to the jury concerning Leyba’s awareness and knowledge of his actions. Leyba admitted to not liking Miller and to chasing him around the store. The forensic evidence proved that Leyba bludgeoned Miller’s head with one or more blunt instruments, breaking the skull open ‘like an eggshell.” Miller’s throat had been cut six times, cutting both the carotid artery and his internal jugular vein. Leyba also stabbed Miller nine times in the back when Miller was immobile. Leyba then concealed the fact he had been at the pawn shop and did not tell anyone he had been attacked by Miller.
When Leyba fled the murder scene he took four of the murder weapons with him and concealed them in his vehicle. He washed Miller’s blood off his hands and face and removed his outer clothing to conceal the fact that he had been involved in a brutal attack. There was sufficient evidence for the jury to find that Leyba acted knowingly, because even if death was not the intended result, he was aware of the high probability that such a result would be caused by his conduct. Section 45-2-101(33), MCA (1993).
The jury considered all the evidence presented, including Leyba’s own admission, his bloody fingerprint and shoe print, the nature of the injuries, and his possession and concealment of the murder weapons. The jury did not find Leyba’s theory of self-defense credible. We conclude there was sufficient evidence to support Leyba’s conviction of deliberate homicide pursuant to § 45-5-102(1)(a), MCA (1993), and affirm the jury’s verdict and the District Court’s judgment and order on the matter.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, TRIEWEILER and GRAY concur.
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ORDER
PER CURIAM:
Original proceeding.
Relator, a female minor, applies for extraordinary relief because she is being refused entry to and participation as a bareback bronc rider, in a rodeo by reason of her sex. The rodeo is being held the weekend of September 14 and 15. The application was filed September 12, 1974, and counsel was heard in oral presentation late that same afternoon and the matter taken under advisement.
Relator requests the issuance of an injunction and temporary-restraining order prohibiting the sponsor of the rodeo from refusing her entry in the contest as a bareback bronc rider.
The respondent district court and judge declined to afford the relief here sought and relator contends this, constituted a gross abuse of the discretionary authority of the court. The matter was filed in the district court on September 11, 1974.
This matter is now presented here as an “emergency” proceeding sufficient to invoke extraordinary remedies from this Court, ex parte, without notice, without bond and without hearing.
The foregoing statement of the issue involved makes it obvious that it is not of such an emergent nature, nor a matter of such irreparable damage so as to invoke the powers of this Court.
Accordingly, the relief sought is denied, and this proceeding is ordered dismissed.
|
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MR. JUSTICE BONNER
delivered the opinion of the Court.
This is an appeal by the defendant, Robert S. Simpson, from a judgment entered upon findings of fact and conclusions of law in a divorce action. The case was tried without a jury in the district court of Lewis and Clark County before the Hon. Victor H. Fall, district judge. The findings of fact and conclusions of law which are contested concern the division of property between the litigants. The award of the divorce to the plaintiff, Lola Mae Simpson, is not contested.
Plaintiff in her complaint, alleges that certain real property held in co-ownership between herself and defendant had been purchased with an initial outlay of $30,000 by plaintiff through her parents and grandparents; that the defendant contributed no money towards the purchase and therefore the plaintiff should receive $30,000 from the proceeds of the sale of the property as reimbursement for her initial investment.
The trial court in its findings of fact and conclusions of law determined: that the plaintiff had received a gift of an amount equal to $30,000 from her grandparents toward the initial purchase price of the property, over and above any amounts which the defendant furnished; that in the sale of such property and division of the proceeds the plaintiff was to receive $30,000 after the outstanding loans upon the property had been paid; and that any amount then remaining would be divided equally between the defendant and plaintiff. It is this ruling which is appealed.
The following facts are not disputed. In the fall of 1954, the parties moved from a ranch west of Bozeman, Montana to a ranch located north of Helena, Montana. Both ranches were owned by the plaintiff’s grandfather, a Mr. Hedges. The parties leased this ranch on a crop share basis until the fall of 1961 at which time they purchased it from the plaintiff’s grandmother to whom it had been deeded by her husband prior to his death in 1960. Earlier, in 1957, Mr. Hedges sold 403 acres of land which had been part of the total ranch to the Bureau of Reclamation for the construction of Canyon Ferry Reservoir. Mr. Hedges received $45,000 from this sale. The remainder of the ranch was deeded to the parties for a total purchase price of $30,000 paid to the grandmother from a loan received by the parties from, the Farm and Home Administration (hereafter referred to as FHA).
Since the purchase in 1961, the defendant has worked the land, along with the help of three sons, to pay off the loan. The plaintiff has also helped to run the ranch.
It is at this point that the facts become disputed. The plaintiff contends the market value of the property, at the time the ranch was purchased from her grandmother was about $65,000 The trial record shows that through the appraisal of the FHA in 1961, the market value of the property was about $65,000. From this the plaintiff contends, and the trial court agreed^ that the great disparity between the market value and actual purchase price was, in effect, a gift from her grandparents of $30,000.
The defendant, on the other hand, contends that in bargaining with plaintiff’s grandfather, prior to his death, an agreement had been reached that the $30,000 would be full payment for the land because the other parcel of land sold to the Bureau of Reclamation for $45,000, added to the $30,000, would equal $75,000; an amount which the grandfather believed the land to be worth.
The only issue presented to this Court for determination is whether there is substantial evidence to support the findings and conclusions of the trial court that plaintiff received a gift of $30,000 from the sellers when the parties jointly purchased the ranch property. We hold there is not.
In In re Brown’s Estate, 122 Mont. 451, 206 P.2d 816, this Court said:
“To constitute a gift of a chattel there must be (1) an intention on the part of the donor to make the gift; (2) delivery by the donor of the subject matter of the gift, and (3) acceptance of the gift by the donee, [p. 455, P.2d p. 819] # * * the burden of establishing the fact of a gift is on the person claiming the gift. [p. 458, 206 P.2d p. 820] * * * A gift will not be presumed, but one wbo asserts title by this means must prove it by clear, convincing, strong and satisfactory evidence, [p. 459, 206 P.2d 821]”
See also, Detra v. Bartoletti, 150 Mont. 210, 433 P.2d 485; Lyons v. Freshman, 124 Mont. 485, 226 P.2d 775, 23 A.L.R.2d 1165; Stagg v. Stagg, 90 Mont. 180, 300 P. 539.
In the above cases, the alleged gifts concerned personal property. In the instant case we are concerned with real property where a deed has been delivered. The plaintiff repudiates the consideration theory in part and contends the deed was transferred to herself and the defendant in cotenancy for the consideration of $30,000 paid by both parties from the loan and a gift of $30,000 from her grandparents. Under these circumstances the burden rests upon the plaintiff to prove the $30,000 was, in fact, an absolute gift. This the plaintiff failed to do. Plaintiff testified at the trial that the property in question had been valued by the FHA at about $65,000; that her grandparents sold the ranch to her and defendant for $30,000; and, therefore they received the ranch for one-half of its market value. Upon questioning from the trial court the following dialogue took place:
“THE-COURT: * * * She claims she has got $30,000' more coming than her husband, and as I understand your story, it is that you got the ranch for about half, for about $30,000! less than what it is worth.
“THE WITNESS: That is my belief.
“THE COURT: All right. Go ahead. Now I understand it.
“THE WITNESS: Now, this offer was made from my— through my grandfather and my grandmother because of me being a granddaughter. There wouldn’t have been any possible way for him to buy the ranch at that price if I hadn’t consented to it and if they hadn’t been my grandparents.”
Other like testimony was elicited from the plaintiff but in our opinion this is not clear, strong, convincing and satisfactory evi dence of an intent by the grandparents to transfer a gift to the plaintiff.
Plaintiff’s argument that this Court should not overturn the trial court’s findings and conclusions is clearly without merit. "We stated in Estate of Cocanougher, 145 Mont. 60, 399 P.2d 420:
“As we have stated before, we are long committed to the rule that we will not reverse the finder of fact unless the evidence clearly preponderates against it. This is a sound rule that should not be avoided lightly, but where there is insufficient evidence to support the conclusions of the finder of fact, such a rule should not stand as a bar to justice.”
■ There is clearly insufficient evidence here to support the finding of a gift being given. For these reasons the cause is remanded to the district court for further proceedings not inconsistent with this opinion.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES JOHN CONWAY HARRISON and HASWELL, concur.
MR. JUSTICE CASTLES, deeming himself disqualified, took no part in this cause.
|
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
This is an appeal from a judgment of the district court of Powell County awarding the claimant compensation for an industrial accident in the amount of $24.50 per week for a period of 500 weeks.
Richard J. Murray is the claimant and respondent; the defendants and appellants are the Elliston Lime Company and its insurance carrier, Standard Accident Insurance Company.
On June 24, 1955, while in the employ of the Elliston Lime Company, claimant Murray suffered an industrial accident when a sack of lime, which he was removing from a sacking machine, burst causing lime to be blown into his face and eyes. As a result of this mishap, the claimant suffered lime burns to both eyes. There is a conflict as to the nature and extent of the damage. Claimant contends that he incurred a twenty percent permanent loss of vision, and that his ability to distinguish colors and depth has been impaired; on the other hand, while admitting that claimant suffered an industrial accident, defendants assert that at least some of the eye damage is the result of retinal modifications caused by vascular changes and aging.
In any event, claimant has not held steady employment since the accident. Prom the record it is seen that claimant could have returned to his old job at the Elliston Lime Company on March 11, 1956, however, he chose to remain at his home in the community of Marysville where he has been able to earn only $78 since the date of the injury. The record further shows that claimant is capable of performing certain types of unskilled labor, such as laying and loading pipe, fighting forest fires, and chopping and sawing wood.
After hearing his claim, the Industrial Accident Board, basing its award upon section 92-709, R.C.M.1947, the specific injury statute, awarded compensation of $24.50 per week for 100 weeks. Claimant prosecuted an appeal to the district court of Powell County. The district court held that since this injury occurred prior to March 13, 1957, and before the amendment of section 92-703, R.C.M.1947, which eliminated the choice of proceeding under section 92-703 or section 92-709, Spieth v. Stuart, 130 Mont. 216, 299 P.2d 106, controls, therefore, since the claimant is partially permanently disabled, he is entitled to compensation for his loss of earnings for a maximum of 500 weeks. Accordingly, the district court awarded compensation of $24.50 per week for 500 weeks.
Of appellants’ eight specifications of error, three deal with whether or not the Spieth case compels an award for the maximum period of 500 weeks. Necessary to a disposal of the instant case is a discussion of our holding in the Spieth case.
•Both the claimant and the appellants agree as to the applicability of the Spieth case, but disagree as to the district court’s interpretation of it.
The Spieth case allowed the claimant either to elect to proceed under R.C.M.1947, § 92-709, the specific injury statute, and receive an arbitrary amount for loss of or injury to a member, or, to proceed under R.C.M.1947, § 92-703, in which event and upon proper showing, the claimant could possibly receive the maximum 500 weeks compensation for permanent partial disability resulting from loss of or injury to a member. We should like to note in passing that since our decision in Spieth v. Stuart, supra, section 92-703 has been amended so that for loss of or injury to a member, standing alone without proof of added disability, the claimant is bound by the duration set forth for the particular loss or injury in section 92-709, the specific injury statute, hence, an election is no longer possible. Becktold v. Ind. Acc. Bd., 137 Mont. 119, 350 P.2d 383 (1960).
In the instant ease, the industrial accident occurred prior to March 13, 1957, and before the amendment to section 92-703, consequently, the issues involved here must be determined in light of our foregoing discussion of the Spieth case as it construes section 92-703 and 92-709. We note that in the ease at bar claimant Murray elected to proceed under section 92-703, however, the Board made its award under the provisions of section 92-709, the specific injury statute. The district court, finding that the claimant suffered a permanent partial disability, to-wit, twenty percent loss of total vision, felt compelled in view of Spieth v. Stuart, supra, to award the maximum 500 weeks of compensation.
While we in no way intend to renounce or limit the salutary rule that the Workmen’s Compensation Act should be liberally construed in favor of the claimant (See Grief v. Industrial Accident Fund, 108 Mont. 519, 526, 93 P.2d 961 (1939); Spieth v. Stuart, 130 Mont. 216, 219, 299 P.2d 106 (1956), neither do we intend to make the liberal construction concept a vehicle by which able-bodied workmen can achieve semi-retirement at the expense of insurers.
In the Spieth case where this court allowed an election to a claimant suffering from loss of a member, we made it clear that under section 92-703, the claimant must show loss of earnings. Spieth v. Stuart, supra, 130 Mont, at 220, 299 P.2d at 108. In this regard the test of whether or not claimant’s earning capacity has been impaired as set forth in Shaffer v. Midland Empire Packing Co., 127 Mont. 211, 213-214, 259 P.2d 340, 342 (1953), is applicable. In that case, this court stated: “The test, however, is not whether there has been a loss of earnings or income caused by the injury, but rather has there been a loss of earning capacity — a loss of ability to earn in the open labor market.” Similarly, in Meznarich v. Republic Coal Co., 101 Mont. 78, 93, 53 P.2d 82, 87 (1935), this court said: “Aside from the loss of members of the body, the extent of a man’s disability is determined by answering the question as to whether or not he is able to earn wages by labor, and, if so, how his earning capacity compares with that before the injury. If he is still able to earn something as wages, his disability is partial; if not, it is total. ’ ’
Both of the foregoing quotations deal with loss of earnings, which must be established when the claimant proceeds under the provisions of section 92-703. In the instant case the district court has in effect ruled that the claimant Murray will never regain his maximum earning capacity. A reading of the record regarding the circumstances surrounding claimant’s semi-retirement in Marysville warrants no such conclusion. From the record we see that the claimant could have regained his old job at the Elliston Lime Company at no less than the same salary, also, since the date of the accident claimant has engaged in certain types of non-skilled labor, further, it appears that claimant has made no reasonable effort to obtain suitable employment as required by law. (See Sullivan v. Anselmo Mining Corp., 82 Mont. 543, 557, 268 P. 495 (1928).
We therefore hold that in this case the claimant has not made a sufficient showing of loss of earnings so as to entitle him to the maximum award of 500 weeks under the interpretation of Spieth v. Stuart, supra. In view of the fact that the claimant has to date received 100 weeks compensation for the industrial accident, and the fact that Spieth v. Stuart, supra, does not compel an award of 500 weeks compensation where loss of earning capacity is not shown, the judgment of the district court is reversed, and the cause remanded to that court with instructions to forthwith remand the cause to the Industrial Accident Board in order that it may dispose of the case under the provisions of section 92-713, R.C.M.1947.
MR. JUSTICES DOYLE, ADAIR, CASTLES and JOHN C. HARRISON concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
This is an appeal from a portion of a decree of divorce entered in District Court, Lewis and Clark County, Hon. Peter Meloy presiding without a jury.
Petitioner brought this action for a dissolution of his marriage; an equitable distribution of the property of the parties; and, for determination of the amount of child support payments to be paid to respondent. The District Court dissolved the marriage; made a division of their property; set the amount of child support and alimony payments; and, required the petitioner to pay respondent’s attorney fees. From the judgment, as it relates to child support and alimony payments and the requirement that petitioner pay respondent's attorney fees, petitioner appeals.
On January 19, 1977, husband petitioned the court for dissolution of his marriage. The petitioner requested the court to hold an evidentiary hearing to determine an equitable division of property and the proper child support payment. The matter was heard before the court on March 30 and 31, 1977. On May 12, 1977, the court entered its decree of dissolution of marriage and property distribution. That decree includes findings of fact and conclusions of law which form a basis for this appeal.
The court awarded the wife .the care, custody and control of the two minor children of the parties. The husband was ordered to pay as child support the sum of $175 per month per child and for the medical, dental and hospital costs and expenses of the minor children. The husband is to pay the wife as alimony the sum of $150 per month commencing May 1, 1977 and continuing through the months of June, July, August and September, 1977. The husband is to make all house payments on the residence jointly owned by the parties; thé payments to include principal, interest, taxes and insurance. The payments are to continue until the home is sold after the children complete high school or upon the wife’s remarriage. One-half of each house payment shall constitute alimony to the wife and shall be taxable to her income and deducted by the husband as such. From the testimony presented at trial, it is estimated the house payments and approximately $200 per month.
The decree also specified that husband pay wife’s attorney fee in the amount of $2,000. The transcript does not reveal any evidence pertaining to the reasonableness of the attorney fee or the amount of work performed for the wife by her attorney.
This appeal presents three issues attacking the District Court’s findings of fact and conclusions of law:
1. Whether the District Court erred in requiring petitioner to pay respondent$2,000 for her attorney fee, without requiring proof to demonstrate the proper amount of such fee.?
2. Whether the findings of fact and conclusions of law issued by the District Court fulfill the requirements of Rule 52(a), M.R.Civ.P.?
3. Whether the amount of the District Court’s award of child support and alimony to respondent is supported by the evidence presented at trial?
Issues 1 and 3 challenge the sufficiency of the evidence and Issue 2 challenges the procedural propriety of the findings and conclusions under Rule 52(a), M.R.Civ.P. The transcript on appeal reveals that at no time did petitioner object to the findings; present proposed findings of his own; or, move for a new trial or for an amendment of the findings and conclusions.
Montana law provides that in all actions tried upon the facts without a jury, the court is under an obligation to, issue findings of fact and conclusions of law. Rule 52(a), M.R.Civ.P., states:
“In all actions tried upon the facts without a jury on with an advisory jury, .the court, shall find the facts specially and state separately its conclusions of law thereon, and judgment shall be entered pursuant to Rule 58; and in granting or refusing interlocutory injunctions the court shall similarly set forth the findings of fact and conclusions of law which constitute the grounds of its actions. Requests for findings are not necessary for purpose of review. Findings of fact shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the trial court to judge of the credibility of the witnesses. The findings of a master, to the extent that the court adopts them, shall be considered as the findings of the court. If an opinion or memorandum of decision is filed, it will be sufficient in the findings of fact and conclusions of law appear therein. Findings of fact and conclusions of law are unnecessary on decisions of motions under Rules 12 or 56 or any other motion except as provided in Rule 41(b).”
To determine the effect of Rule 52(a), M.R.Civ.P., it is necessary to first define what is meant by the terms “findings of fact and conclusions of law.” This Court has said that findings of fact and conclusions of law are not the judgment, but merely the foundation for the judgment. State ex rel King v. District Court, (1939), 107 Mont. 476, 480, 86 P.2d 775. This foundation need not consist of a multitude of evidentiary facts, but must be comprised of ultimate facts.
In other words, the findings of fact required by Rule 52(a) is nothing more than a recordation of the essential and determining facts upon which the District Court rested its conclusions of law and without which the District Court’s judgment would lack support. There are several reasons why it is important this recordation be made. The purpose of requiring findings of fact is three-fold: l)as an aid in the trial judge’s process of adjudication; 2) for purposes of res judicata and estoppel by judgment; and 3) as an aid to the appellate court on review. 5A Moore’s Federal Practice ¶ 52.06[1],
After a careful review of the record, we find considerable conflicting evidence. The findings and conclusions of the trial court are clear to this Court, even if not entirely in the recom mended form. However, there was no post trial procedures to correct this. We find substantial credible evidence to support the trial judge’s judgment on the merits.
We find a lack of evidence that would satisfy the requirements of Crncevich v. Georgetown Rec. Copr., (1975), 169 Mont. 113, 541 P.2d 56, and First Security Bank of Bozeman v. Tholkes, (1976) 169 Mont. 422, 547 P.2d 1328, to support the award of attorney fees in the judgment.
The judgment of the trial court on the merits is affirmed. The cause is remanded to the trial court for an evidentiary hearing to establish attorney fees.
MR. CHIEF JUSTICE HASWELL, MR. JUSTICE DALY, J„ and BERNARD THOMAS, District Judge, concur.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
This is an Application for Writ of Supervisory Control or other appropriate writ.
Relator, Joy V. Kaasa, is the petitioner for dissolution of marriage in civil cause no. 6228 in the District Court of the Seventeenth Judicial District, Phillips County. Her petition, with a request for division of the marital property, was heard November 5, 1976. After hearing, the District Court issued its Findings of Fact, Conclusions of Law and Judgment on February 28, 1978. Notice of appeal to this Court was filed by the husband, Osborne A. Kaasa, on March 30, 1978.
A copy of the Judgment appears in the record. By it, the marriage was dissolved and custody of a minor child was awarded to the mother for part of each year and to the husband for the remainder of each year; with the husband to pay the wife $75.00 for each month the child resides with her. With respect to the marital property, among other things, she is to receive $99,138.00 in value payable to her by delivering certain property to her at a decreed value and a balance of $67,656.00 to be paid to her over a period of 25 years computed on an amortized basis of 6% per annum, payments to be made annually beginning a year from the decree. She was also awarded attorney fees of $1,000.00. There are other provisions in the decree not importánt here.
After the notice of appeal was filed, the relator wife filed a motion in the District Court requesting an Order to Show Cause addressed to the husband concerning temporary maintenance, custody and attorney fees. A hearing was held on April 20, 1978 and thereafter the Court indicated the findings it would enter in the cause, to be effective pending final determination on appeal. However, the District Court also indicated that it would not enter conclusions of law, or make a temporary order pending appeal, because of the District Court’s interpretation that the filing of a notice of appeal had taken away its jurisdiction to enter such an order pending appeal. The provisions of the temporary findings which the District Court would enter on the hearing to show cause if it had jurisdiction would be in substantial variance from the provisions of the decree which is the subject of the husband’s appeal.
The District Court recommended that the wife file an application in this Court for an order which would grant the relief found by the District Court, or else authorize the District Court to enter such a temporary order. Hence, the wife, as relator, comes before us for a writ of supervisory control or other appropriate writ, requesting the temporary relief suggested by the District Court, either by our order, or by authorizing the District Court so to order.
A decree of dissolution of marriage is final when entered, subject to the right of appeal. Section 48-328, R.C.M.1947. The District Court has power to modify or terminate a decree for maintenance of support only under section 48-330, R.C.M.1947. The District Court loses authority to modify its judgment or decree upon a notice of appeal being duly filed. Benolken v. Miracle, (1954) 128 Mont. 262, 266, 273 P.2d 667. Then all further proceedings in the District Court are stayed upon the judgment appealed from, or “* * * upon the matters embraced therein. * * *” Section 93-8011, R.C.M.1947.
The District Court is not completely powerless, however. It^ has the power to enforce the judgment already entered by contempt proceedings, where no stay of judgment has been ordered. Kramer v. Kramer, (1978), . . . Mont. . . ., 578 P.2d 317, 35 St. Rep. 635; Myhre v. Myhre, (1976) 170 Mont. 410, 548 P.2d 1395. It further has the statutory power, under section 48-327, R.C.M.1947, to require the husband to pay reasonable sums to the wife for attorney fees and costs in maintaining or defending a proceeding, even “after entry of judgment.” In the final analysis, it also has the power to order temporary support pending appeal for the wife and minor children.
This Court noted in Bordeaux v. Bordeaux, (1904) 29 Mont. 478, 482, 75 P. 359, 360, that:
“We are of the opinion that under the above-quoted provisions of the statute the district court had jurisdiction and power, notwithstanding the judgment, at any time prior to the determination of the action on appeal from the judgment, or prior to the expiration of the time of appeal, to require the husband to pay any money necessary to enable the wife to support herself and to further prosecute or defend the action. (Citing cases).”
The Court reached that conclusion in Bordeaux after analysis of statutes then in effect. Section 21-137, R.C.M.1947 (then Section 191, Civil Code) provided for expenses of action and alimony pending the action. Section 93-8706, R.C.M.1947, still in effect, says that an action is deemed to be pending “from the time of its commencement until its final determination upon appeal, or until the time for appeal has passed, unless the judgment is sooner satisfied.” Therefore, regardless of the appeal taken by the husband Osborne A. Kaasa, the action for marital dissolution is still pending in the District Court. The Court concluded in Bordeaux that the matter of temporary support and suit money, pending appeal, was not a matter “embraced” within the judgment, under section 93-8011, R.C.M.1947, and therefore the District Court could award such temporary items even though an appeal is pending.
Further, in an earlier action between the same parties (Bordeaux v. Bordeaux, (1902) 26 Mont. 533, 69 P. 103) this Court decided that the Supreme Court had no power to grant temporary alimony or suit money, nor was such power necessary to the complete exercise of its appellate jurisdiction. We agree with what Mr. Justice Pigott wrote in that case about the effect of an appeal upon an action and its pendency in the District Court:
“* * * The action — the entire case — is not transferred by appeal. Questions of law only are presented on appeal, even where the relief sought is equitable in character. The action itself is still pending in the lower court. On an appeal only questions of law are tried; * * * Except in so far as affected by the appeal, the cause remains in the district court, the primary forum. * * *”26 Mont. at p. 536, 69 P. at p. 104.
The i District Court, by statute, may after judgment “proceed upon any other matter embraced in the action, and not affected by the order appealed from.” Section 93-8011, R.C.M.1947.
The Uniform Marriage and Divoce Act now in effect in Montana gives the District Court authority to provide temporary orders for support and maintenance to a spouse. Section 48-318, R.C.M.1947. Nothing in that statute restricts the power of the District Court to orders made before judgment. In fact, it is specifically provided that the granting of such an order does not prejudice the rights of the parties at “subsequent hearings in the proceeding,” which would include an appeal. Section 48-318(6)(a), R.C.M.1947.
We hold therefore that a District Court has power to award necessary maintenance, child support and suit monies after judgment in a marital dissolution case, where an appeal is taken from the judgment, during the pendency of the appeal. To hold otherwise would leave a hiatus in the remedial power of the District Court that could cause unmeasured hardship and distress. Our holding is consonant with the purposes of the Uniform Marriage and Divorce Act, to “mitigate the potential harm to the spouses and their children caused by the process of legal dissolution of marriage.” Section 48-302(4), R.C.M.1947 (Emphasis supplied).
Since the wife has an adequate remedy in the District Court, her application for a writ is denied. Because we have not ordered an adversary hearing on her application, we have not had the benefit of briefs on this matter from the husband. Should he desire to contest what we have said here, he may appeal directly from any temporary order granted during appeal, or we will entertain the issue if raised in his briefs on his appeal from the dissolution decree.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON and SHEA concur.
|
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MR. JUSTICE JOHN C. HARRISON,
delivered the Opinion of the Court.
This appeal results from a finding by the trial court, sitting without a jury, that the Pee Wee Baseball League as conducted in Kalispell was a nuisance and from an injunction that not only would prevent the use of a playground for baseball, but also, the ordering of the removal of all light poles, backstops and other baseball paraphernalia from the playground. Pending this appeal, appellants obtained an order from this court suspending the lower court’s injunction.
In 1936, the City of Kalispell purchased a vacant city block located in the residential section of the city, referred to as “Thompson Field.” Throughout the ensuing years, the field has been used for football, softball, and for Pee Wee baseball since 1952.
The Pee Wee Baseball League in the city is an unincorporated association of parents imbued with the idea that the all-American game of baseball is important to a growing boy. Lights were installed at Thompson Field in 1963 so that the Pee Wee League could play ball into the summer evenings up until 10:00 p. m. According to the testimony this was necessary because the fathers who served as team coaches did not get off work early enough to have their teams play daylight games. During the 1964 season over 400 boys between 8 and 12 years of age participated in the program and used the field, during a seven-week period in June and July, and in which months, between 23 and 30 evening baseball games were played.
The respondents Collier, whose home was located in the northeast corner of the block just west of the field, purchased their property in 1952; the respondents Carlson, whose property adjoins the Colliers, purchased their property in 1950 ;- and the respondents Kasala, whose property was located in the block northwest of the field purchased their property in June 1964.
Two of the respondents, the Colliers and the Carlsons testified that they did not object to the use of the field for baseball, but did object to the lights and the noise and increased traffic at the time of the games. The respondent Kasalas testified in support of their request for an injunction that:
(1) The bright lights bothered them at night;
(2) Noise from the attending crowd bothered them;
(3) That heavy traffic created a hazardous condition;
(4) That when the field was dragged the dust bothered them;
(5) That some children used foul language;
(6) Balls were hit hito their yard and their lawns and flowers were damaged; and
(7) G-ames were played after 10:00 p. m.
Needless to say, at the time the matters were heard, public interest was in evidence. The appellants had some 27 witnesses, 24 of whom lived either across from the field or within one-half block of it. Some 16 of these witnesses’ testimony was stipulated to at the time of the hearing, but without question the majority of the property owners, whose property surrounded the field disagreed with the respondents and testified that there was little or no interference with the comfortable use of their property. City officials testified that they were familiar with the area, had received requests and complaints from the respondents and had tried to rectify their complaints. The chief of police testified that special measures were taken on the nights of ball games to control traffic; testimony was given indicating that the public officials, when informed that debris from the field blew onto respondents’ lawns, made special efforts thereafter to see that the area was policed, and in addition upon learning of respondents’ objections to the lights, efforts were made to have the games end before 10:00 p. m., so that the lights could be turned off.
In spite of all this testimony the court found:
(a) The property of the plaintiffs (respondents) and each of them is continually trespassed upon;
(b) The plaintiffs (respondents) and each of them, including their friends, families and guests live in fear of injury to their persons and property from flying balls;
(c) That by reason of the playing of baseball games, the quiet and enjoyment of the plaintiffs’ (respondents’) property has been seriously interfered with by reason of the excessive noise caused by the attending public and the participants ; that the attending public, on many occasions disorderly, congregates in the area; that obscene language is used publicly;
(d) That a large part of the attending public arrives by private automobile causing serious congestion in the immedi ate vicinity of the plaintiffs’ property, thereby creating a serious traffic hazard;
(e) That the Kalispell Pee Wee Baseball League, without the consent of the City of Kalispell, and other persons, erected light poles, flood lights, backstops, screens, fences and other structures on said real estate which items detract from the value and enjoyment of plaintiffs’ property; and
(f) That the above-circumstances and conditions created undue interference with the plaintiffs’ peaceful, quiet, use and enjoyment of their property.
The court then went on to its conclusions of law, finding that the above-circumstances clearly set forth facts describing a nuisance within our statute, section 93-6101 and section 57-101 R.C.M.1947, which provide:
“93-6101. Nuisance defined and actions for. Anything which is injurious to health, or indecent, or offensive to the senses, or an obstruction to the free use of property, so far as to interfere with the comfortable enjoyment of life or property, is a nuisance, and the subject of an action. Such action may be brought by any person whose property is injuriously affected or whose personal enjoyment is lessened by the nuisance, and by the judgment the nuisance may be enjoined or abated, as well as damages recovered.
“57-101. Nuisance defined. Anything which is injurious to health, or is indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal, or basin, or any public park, square, street, or highway is a nuisance.”
This, in spite of substantial evidence that no nuisance existed.
In reality the matter is now moot, for it should be noted that since the lower court’s decision the respondents Kasala have sold their home and moved away, and with the advent of daylight saving time, lights are no longer necessary so the city has removed them from Thompson Field.
Assuming arguendo that the evidence of the respondents was uncontradicted, the holdings of the lower court are not supportable at law. While the appellants admit that baseball, or any other game, could under certain circumstances become a nuisance, such circumstances do not exist in this case.
“The game of baseball is not a nuisance per se, although played in the vicinity of residences, and neither is a baseball park.” 4 Am.Jur.2d, Amusements and Exhibitions, § 42, p. 163.
Courts in considering the criteria of what should constitute interference with a property owner’s peaceful enjoyment of his property have held that it is the ordinary and reasonable person’s complaint that should serve as a basis for what is a nuisance. The Oregon court in Amphitheaters, Inc. v. Portland Meadows, 184 Or. 336, 198 P.2d 847, 5 A.L.R.2d 690, in considering whether a drive-in theater was a nuisance to adjacent landowners stated:
“Again it is held that whether a particular annoyance or inconvenience is sufficient to constitute a nuisance depends upon its effect upon an ordinarily reasonable man, that is, a normal person of ordinary habits and sensibilities. * * * [The Oregon case continues in its consideration of whether lights become a nuisance under certain conditions.]
“* * * The case differs fundamentally from other cases, all typical cases of nuisance, in that light is not a noxious, but is, in general, a highly beneficial element. The development of parks and playgrounds equipped for the enjoyment of the working public, whose recreation is necessarily taken after working hours, and frequently after dark, is a significant phenomenon in thousands of urban communities. The court takes judicial knowledge that many lighted parks and fields are located adjacent to residential property and must to some extent interfere with the full enjoyment of darkness (if desired), by the residents.
“We do not say that the shedding of light upon another’s property may never under any conditions become a nuisance, but we do say that extreme caution must be employed in applying any such legal theory. The conditions of modern city life impose upon the city dweller and his property many burdens more severe than that of light reflected upon him or it.”
The respondents contend that the case resolves itself to one of property rights versus the national sports, baseball, and that historically, when this national sport is involved, prejudice and passion overrule reason and law. To this argument we must answer that property rights were long recognized and established before the advent of our national sport, however, the law does not in every instance provide directly for compensation or fiscal redress for every damnum a man may sustain as a member of an organized society. It is established law that even an intentional interference with the use and enjoyment of land is not actionable unless the interference be both substantial and unreasonable. Restatement of Law of Torts, Vol. 4, § 822.
The respondents claim that traffic hazards and the improper use of streets and driveways for parking creates a public nuisance. These are matters subject to local police regulation and do not constitute a public nuisance. Rohan v. Detroit Racing Ass’n, 314 Mich. 326, 22 N.W.2d 433, 166 A.L.R. 1246.
Too, as previously noted the trial court based its conclusions that under our statutes, section 57-101 or 93-6101, R.C.M. 1947, there was a nuisance created under the facts set forth by respondents. Clearly no facts were shown that the maintenance of the Pee Wee ball grounds resulted in conditions which were injurious to health, or indecent, or offensive to the senses or were obstructions to the free use of property or where there interferences created with the comfortable enjoyment of life or property.
It should be noted in considering the court’s actions in this case that if a nuisance is private and arises out of the particular manner of the operation of a legitimate enterprise the court should have done no more than to point to the nuisance and decree methods of adoption calculated to eliminate the injurious features. Here it was possible to have eliminated the objectionable features which were alleged to have infringed upon the ordinary rights of the respondents, for equity may so decree, instead of compelling, as the trial court did here, the abatement of the use of the baseball field.
Under section 93-216, R.C.M.1947, the duty is imposed on this court to determine questions of fact in equity cases, and unless for good reason a new trial or the taking' of additional evidence is ordered in the district court that court’s decision will be affirmed. In approaching a final decision of this ease we are not unmindful that, notwithstanding the provisions of the section above alluded to, it is a settled rule that this court will hesitate to overturn findings based upon substantially conflicting evidence, justifying an inference in favor of either party. Bouma v. Bynum Irrigation Dist., 139 Mont. 360, 364 P.2d 47; Havre Irrigation Co. v. Majerus, 132 Mont. 410, 318 P.2d 1076. However, in a case such as this, where there is little or no conflicting credible evidence, and where no substantial evidence has been furnished for a basis for the findings of the trial court, this court will not hesitate to finally determine the rights of the parties. If a clear and satisfactory showing is not made in support of the findings, this court in the furtherance of justice, in proper eases, will set them aside. Gray v. Grant, 62 Mont. 452, 206 P. 410.
Therefore, in the spirit of “Casey at the Bat,” Oh, somewhere in this favored land dark clouds may hide the sun. And somewhere bands no longer play and children have no fun. And somewhere over blighted lives there hangs a heavy pall. But in Kalispell, hearts are happy now, for the Pee Wee’s can play ball.
The judgment of the trial court is reversed and the cause remained with directions to dismiss.
MB. CHIEF JUSTICE JAMES T. HABBISON, and MB. JUSTICES ADAIB and CASTLES, concur.
MB. JUSTICE HASWELL, took no part in the hearing or determination of this appeal.
|
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MR. JUSTICE SHEA
delivered the opinion of the Court.
Defendants appeals from a conviction for sale of dangerous drugs, methamphetamines, after jury trial in Park County District Court.
Defendant was charged with selling methamphetamines to Katherine Schott on March 16, 1977 in Livingston, Montana. The State’ principal witness at defendant’s trial was Ms. Schott, an admitted accomplice, former drug addict and immunized witness.
The following facts are reconstructed from her testimony. In March 1977, defendant agreed to sell her $12,000 worth of methamphetamines and she, being unable to finance the transaction, contacted various persons to participate in the deal, including Bill Knutson from North Dakota. Knutson, according to Ms. Schott, was to wire $600 to defendant’s Livingston bank account. On March 16, 1977, Ms. Schott flew by chartered plane from Helena (her home town) to Billings, picked up one of the participants, then on to Livingston where they checked into the Sandarosa Motel. She later contacted Robert Logan, her common law husband, and asked him to join her in Livingston.
During the evening of March 16, defendant allegedly came to her room with a sample of the drugs to be sold. After testing for quality, Ms. Schott gave defendant the money and defendant left, returning a few hours later with a one pound sack of methamphetamines. The following day defendant allegedly returned to the motel room to purchase back an ounce of the drugs for himself. Ms. Schott left Livingston shortly thereafter, going with Robert Logan to Bozeman, where she entrusted her share of the drugs to Timothy VanLuchene for safekeeping. It was through the subsequent search of VanLuchene’s home in Three Forks that Ms. Schott’s involvement with drugs became known to the police.
After her arrest, Ms. Schott made several statements, under oath, to the investigative authorities. She did not implicate the defendant in these early statements, but later in a deposition before the Park County Attorney she did. Defendant was arrested and charged with the March 16, 1977 methamphetamine sale. He pleaded not guilty.
At trial, Ms. Schott testified that she had other drug dealings with defendant during the two months preceding the methamphetamine transaction. In January 1977, in Livingston, she allegedly sold a “rock” of cocaine to the defendant and was paid with the proceeds of a check from Portia Fonda to defendant. In February 1977, in Helena, Ms. Schott allegedly purchased a small quantity of amphetamines from the defendant. Ms. Schott’s testimony as to both these events was received over objection.
Only Robert Logan, Ms. Schott’s common law husband and admitted accomplice to the charge, testified in corroboration of defendant’s involvement in any of these events. VanLuchene testified that he took possession of a quantity of Ms. Schott’s methamphetamines on March 17, 1977. Richard Daem, a Livingston banker, testified to the $600 money wire from Knutson of North Dakota to defendant on March 17, 1977. Other witnesses’ testimony indicated that a deal involving Ms. Schott was made on the night of March 16, 1977, but defendant was not implicated.
The only other evidence suggesting defendant’s complicity in the ■ March 16 drug deal was Ms. Schott’s ledger book and her address book. Neither document was identified or authenticated by an independent witness. The ledger book contained a page which purportedly listed, by code names, the contributors and their respective shares in the drug purchase. Ms. Schott testified that an entry “B. J. will wire $600 to First Security Bank direct to you” referred to Knutson’s money wire to the defendant. The address book contained the names of both the defendant and Richard Daem. Daem’s name was incorrectly spelled “Daiem”. Daem later testified that the original transfer from Knutson to the defendant likewise misspelled his name.
On June 19, 1978, the jury returned a verdict of guilty, and the defendant was subsequently sentenced to ten years in prison with five years suspended.
Though defendant has raised other issues, we determine that as a matter of law the testimony of the accomplices was not adequately corroborated.
It should be noted at the outset that, insofar as the record discloses, the State’s case against the defendant was based on statements given by Ms. Schott who turned State’s evidence in exchange for immunity from prosecution. Since her consent to cooperate stemmed from a desire to avoid prosecution, she cannot be said to be without motive to fabricate. This factor, coupled with her status as an admitted accomplice to the charge, renders the information she provided particularly suspect.
Section 95-3012 (formerly section 94-7220), R.C.M.1947, now section 46-16-213 MCA provides:
“ ‘Testimony of person legally accountable. A conviction cannot be had on the testimony of one responsible or legally accountable for the same offense, as defined in 95-2-106, unless the testimony is corroborated by other evidence which in itself and without the aid of the testimony of the one responsible or legally accountable for the same offense tends to connect the defendant with the commission of the offense. The corroboration is not sufficient it if merely shows the commission of the offense or the circumstances thereof.”
The sufficiency of evidence necessary to corroborate accomplice testimony is a question of law. State v. Standley (1978), 179 Mont. 153, 586 P.2d 1075, 1078; State v. Perry (1973), 161 Mont. 155, 161, 505 P.2d 113, 117. In defining the quantum and character of proof required to corroborate accomplice testimony, a substantial body of caselaw has evolved.
To be sufficient, corroborating evidence must show more than that a crime was in fact committed or the circumstances of its commission. State v. Keckonen (1938), 107 Mont. 253, 263, 84 P.2d 341, 345. It must raise more than a suspicion of the defendant’s involvement in, or opportunity to commit, the crime charged. State v. Gangner (1957), 130 Mont. 533, 535, 305 P.2d 338, 339. But corroborative evidence need not be sufficient, by itself, to support a defendant’s conviction or even to make out a prima facie case against him. State v. Ritz (1922), 65 Mont. 180, 186, 211 P. 298, 300; State v. Stevenson (1902), 26 Mont. 332, 334, 67 P. 1001, 1002. Corroborating evidence may be circumstantial (State v. Harmon (1959), 135 Mont. 227, 233, 340 P.2d 128, 131) and can come from the defendant or his witnesses. State v. Phillips (1953), 127 Mont. 381, 387, 264 P.2d 1009, 1012.
With these principles in mind, each case must be examined on its particular facts to determine if the evidence tends, in and of itself, to prove defendant’s connection with the crime charged.
One accomplice cannot supply the independent evidence necessary to corroborate another accomplice. State v. Bolton (1922), 65 Mont. 74, 88, 212 P. 504, 509; 30 Am.'Jur.2d Evidence § 1156. Hence, the testimony of Robert Logan, Ms. Schott’s common law husband and admitted accomplice to the charge, cannot be regarded as corroborative.
Apart from the testimony of Ms. Schott and Logan, the accomplices, the State’s case consisted of: Sandarosa Motel records that place Ms. Schott in Livingston on March 16, 1977 — the night the deal was allegedly made; VanLuchene’s testimony that he received a quantity of methamphetamines from Ms. Schott in Bozeman on March 17; the testimony of Daem, the Livingston banker, that a $600 money wire was effected from Knutson of North Dakota to the defendant on March 17; Ms. Schott’s ledger book which contained a reference to the $600 money wire; Ms. Schott’s address book which allegedly contained defendant’s code name and phone number and the banker’s name (Daem); and the fact that Daem’s name was misspelled “Daiem” both on the original $600 money wire and in Ms. Schott’s address book.
The motel records and VanLuchene’s testimony amount to no more than evidence relating to the commission and circumstances of a crime and do not implicate defendant in the least. Daem’s testimony regarding the $600 money wire depended for its relevancy upon the testimony of Ms. Schott, an accomplice. She alone made the connection between the $600 money wire and the alleged drug deal of the day before. Similarly, the ledger and address book each depended for their relevancy, as well as their authenticity, upon the testimony of Ms. Schott. Documentary evidence which depends for its relevancy or authenticity upon the testimony of an accomplice will not suffice as corroboration. “To hold otherwise would be to say that the accomplice may corroborate himself.” Annot., 96 A.L.R.2d 1185, 1188; People v. Cona (N.Y.App.1978), 60 A.D.2d 318, 401 N.Y.S.2d 239, 243. The coincidental misspellings of Daem’s name may suggest that Ms. Schott initiated the $600 money wire, yet no evidence, aside from her testimony, tends to connect this transaction with the crime.
Certainly, the contemporaneousness of the money wire and the alleged drug deal casts a cloud of suspicion over the defendant. Nonetheless, “Where the claimed corroboration shows no more than an opportunity to commit a crime and simply proves suspicion, it is not sufficient corroboration to justify a conviction upon the testimony of an accomplice.” Standley, 586 P.2d at 1077. It was not the defendant’s burden to prove he had no connection with the crime. The burden was on the prosecution to produce corroborating evidence which, of itself and without aid or direction from the accomplices’ testimony, connected the defendant with the crime charged. People v. Robinson (1964), 61 Cal.2d 373, 38 Cal.Rptr. 890, 907, 392 P.2d 970, 987. Here, the prosecution did not meet this burden.
Without sufficient corroboration, a conviction that rests on the testimony of an accomplice cannot stand. Defendant’s conviction is reversed and the cause ordered dismissed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEEHY concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
In a case of first impression, the issue before this Court is whether an individual major medical expense insurance policy that excludes coverage for normal pregnancy and childbirth violates § 49-2-309, MCA. Unique to Montana, § 49-2-309, MCA, prohibits discrimination based solely on sex in the issuance, operation, coverage, rates or premiums of any type of insurance policy. The First Judicial District Court, Lewis and Clark County, affirmed a determination by the Montana Human Rights Commission (the Commission) that the policy issued by Bankers Life and Casualty Co. (Bankers Life) unlawfully discriminated against female policyholders. We affirm the District Court.
Bankers Life is an insurance company authorized to do business in Montana. Lorili Barnett, Lea Peterson, Kristi Wolf and Diane Chaidez (collectively the Charging Parties), in separate transactions, purchased a “Major Medical Expense Policy” from Bankers Life. The policies contained the following provisions at issue in this case:
BENEFIT PROVISIONS — We’ll pay covered expenses incurred by a family member due to injury, sickness or mental illness.
EXCEPTIONS — This policy does not cover expenses for:
(13) Normal pregnancy and childbirth. Complications of pregnancy expenses are covered as a sickness.
In conjunction with this policy, Bankers Life offered an optional Maternity Benefits Rider which would provide coverage for normal pregnancy and childbirth expenses. The Charging Parties did not purchase the Maternity Benefits Rider.
The Charging Parties subsequently gave birth and submitted their normal maternity expenses to Bankers Life; Bankers Life denied coverage for those expenses. Pursuant to § 49-2-309, MCA, each of the Charging Parties filed a complaint with the Commission, alleging ■unlawful sex discrimination in an insurance policy. The four cases were consolidated and a hearing was held on January 24, 1992. The Commission issued its Findings of Fact, Conclusions of Law and Order on April 17, 1992, determining that Bankers Life had unlawfully discriminated against the Charging Parties by excluding coverage and denying benefits for normal maternity expenses.
Bankers Life petitioned the District Court for judicial review of the Commission’s decision on May 8, 1992. The State of Montana, on behalf of the Commission, was granted leave to intervene in the action. After oral argument, the District Court issued its decision and order on May 19, 1993, determining that, because pregnancy occurs only to women, any classification which relies on pregnancy as the determinative criterion is a distinction based on sex. Because Bankers Life’s policy excluded benefits for pregnancy and childbirth, the court concluded that the policy unlawfully discriminated against female policyholders in violation of § 49-2-309, MCA.
The parties agree that only issues of law are before this Court. Therefore, our standard of review is whether the District Court’s interpretation of the law is correct. Mooney v. Brennan (1993), 257 Mont. 197, 199, 848 P.2d 1020, 1022. Thus, we focus on the District Court’s interpretation of § 49-2-309, MCA, in light of the agreed facts. The legal issues before us are whether § 49-2-309, MCA, prohibits discrimination on the basis of pregnancy in a major medical expense insurance policy and, if so, whether the Bankers Life policies at issue violate the statute.
1) Does § 49-2-309, MCA, prohibit discrimination on the basis of pregnancy in a major medical expense insurance policy?
The District Court concluded that discrimination on the basis of pregnancy constitutes discrimination on the basis of sex, relying on Massachusetts Elec. Co. v. Massachusetts Comm’n Against Discrimination (Mass. 1978), 375 N.E.2d 1192, 1198. As a result, the court concluded that § 49-2-309, MCA, prohibits discrimination on the basis of pregnancy. On appeal, Bankers Life contends that this conclusion is erroneous as a matter of law.
This Court has not interpreted § 49-2-309, MCA, since its passage in 1983. The statute, which is sometimes referred to as Montana’s “unisex” insurance statute, provides in pertinent part:
Discrimination in insurance and retirement plans. (1) It is an unlawful discriminatory practice for any financial institution or person to discriminate solely on the basis of sex or marital status in the issuance or operation of any type of insurance policy, plan, or coverage or in any pension or retirement plan, program, or coverage, including discrimination in regard to rates or premiums and payments or benefits.
Section 49-2-309, MCA, has no federal or sister-state counterpart. Thus, federal cases and cases from other states interpreting anti-discrimination statutes in different scenarios are not binding on this Court. Indeed, even the Montana cases discussed below involved different sections of the Montana Human Rights Act.
Bankers Life relies on General Electric Co. v. Gilbert (1976), 429 U.S. 125, 97 S.Ct. 401, 50 L.Ed.2d 343, and its limited progeny, to support the assertion that pregnancy-related distinctions do not constitute sex discrimination. Gilbert held that an employee disability benefit plan which excluded benefits for pregnancy did not unlawfully discriminate on the basis of sex in violation of Title VII of the 1964 Human Rights Act, 42 U.S.C. 2000e-2(a)(l) (Title VII). Gilbert, 420 U.S. at 135, 97 S.Ct. at 407, 50 L.Ed.2d at 353. Although the language in Gilbert appears to support Bankers Life’s position, Gilbert is not controlling authority for numerous reasons.
First, the United States Supreme Court’s interpretation of the federal statute prohibiting sex discrimination in employment is not binding on this Court’s interpretation of Montana’s unisex insurance statute. See North v. Bunday (1987), 226 Mont. 247, 254, 735 P.2d 270, 275. Moreover, Congress effectively overruled Gilbert by passing the Pregnancy Discrimination Act, which amended Title VII to specifically include pregnancy as a basis of unlawful discrimination in matters of employment. 42 U.S.C. 2000e(k). Following the passage of the Pregnancy Discrimination Act, the United States Supreme Court stated that Congress had overruled Gilbert and unequivocally held that discrimination based on a woman’s pregnancy is, on its face, discrimination because of her sex. Newport News Shipbuilding & Dry Dock Co. v. EEOC (1983), 462 U.S. 669, 684, 103 S.Ct. 2622, 2632, 77 L.Ed.2d 89, 103.
Most importantly, like the majority of state courts, this Court refused to follow Gilbert. See Mountain States Telephone v. Comm’r of Labor (1980), 187 Mont. 22, 608 P.2d 1047. As we stated in Mountain States:
[m]ountain Bell’s position fails to take into account the rather checkered history of Gilbert, including the recent significant addition to Title VII demonstrating a contrary congressional intent, and the cases decided after Gilbert, demonstrating a consistent refusal on the part of the majority of the courts to follow Gilbert.
Mountain States, 608 P.2d at 1055. We decline to follow Gilbert in this case and, indeed, consider Montana law sufficient to resolve this issue.
In Mountain States, this Court determined that distinctions based on pregnancy are sex-linked classifications. Although we were primarily concerned with the question of federal preemption of the Montana Maternity Leave Act, §§ 49-2-310 and -311, MCA, we stated that:
[pjregnancy is a condition unique to women, and the ability to become pregnant is a primary characteristic of the female sex. Thus, any classification which relies on pregnancy as the determinative criterion is a distinction based on sex ... By definition, [placing pregnancy in a class by itself] discriminates on account of sex; for it is the capacity to become pregnant which primarily differentiates the female from the male.
Mountain States, 608 P.2d at 1056 (citations omitted). Citing Massachusetts Elec., we stated that the exclusion of pregnancy-related disabilities from a comprehensive disability plan constituted sex discrimination in employment. Mountain States, 608 P.2d at 1056.
In 1984, we reaffirmed the principle that differential treatment of pregnancy is gender-based discrimination because only women can become pregnant. Miller-Wohl Co., Inc. v. Comm’r of Labor (1984), 214 Mont. 238, 254, 692 P.2d 1243, 1251. Again, the primary issue in that case was one of federal preemption. However, in Miller-Wohl, we determined that an employer’s sick leave policy created a disparate effect on women who became pregnant compared to men who did not. Although the policy was facially neutral, it nonetheless subjected women to job termination on a basis not faced by men. We concluded, therefore, that the policy was gender-based discrimination. MillerWohl, 692 P.2d at 1052.
Mountain States and Miller-Wohl established that differential treatment of pregnancy constitutes sex discrimination in Montana. Section 49-2-309, MCA, prohibits sex discrimination in the operation, coverage, pricing and benefits of an insurance policy. We conclude, therefore, that § 49-2-309, MCA, prohibits discrimination based on pregnancy in a major medical expense insurance policy. The plain language of § 49-2-309, MCA, and our previous holdings in Mountain States and Miller-Wohl, amply support our conclusion.
We note, moreover, that the majority of courts considering the issue of whether distinctions based on pregnancy constitute sex discrimination under statutes involving both employment and non-employment situations have reached similar conclusions. For example, in Civil Rights Comm’n v. Travelers Ins. Co. (Colo. 1988), 759 P.2d 1358, an employer provided a comprehensive group medical insurance policy as a benefit to its employees; the policy excluded coverage for medical expenses resulting from normal pregnancy but covered complications arising from pregnancy. The Colorado Supreme Court, en banc, concluded that the policy violated a Colorado statute prohibiting sex discrimination in matters of employment compensation. Travelers, 759 P.2d at 1361. Also, in Kirsh v. State Farm Mut. Auto Ins. Co. (Cal.App. 1991), 284 Cal.Rptr. 260, 266, the California Court of Appeals concluded that an insurance company violated the Unruh Act, which prohibits sex discrimination in all “business establishments,” by failing to cover pregnancy-related expenses in an insurance policy. Additionally, in Binghamton Cr. Un. v. Div. of Human Rights (N.Y.App. 1990), 564 N.E.2d 1051,1054, the New York Court of Appeals determined that a disability insurance policy that excluded benefits for pregnancy and was offered in conjunction with an automobile loan was discriminatory because a woman could not obtain credit on the same terms as a man.
Although the great weight of authority supports the District Court’s determination that § 49-2-309, MCA, prohibits discrimination based on pregnancy, Bankers Life argues that the legislature did not intend § 49-2-309, MCA, to encompass pregnancy-related distinctions. It asserts that the 1991 Legislature’s failure to pass House Bill 388, which would have added specific language including pregnancy distinctions as sex discrimination to § 49-2-309, MCA, and its enactment of §§ 33-22-1201, MCA, et seq., demonstrate legislative intent that § 49-2-309, MCA, does not include pregnancy-based discrimination. Bankers Life cites no relevant authority or legislative history to support either assertion.
Section 49-2-309, MCA, is clear and unambiguous; it prohibits discrimination based on sex in insurance policies. Thus, no further interpretation is necessary. GBN, Inc. v. Montana Dep’t of Revenue (1991), 249 Mont. 261, 265, 815 P.2d 595, 597. In any event, the legislature’s failure to enact a proposed amendment is of little value in interpreting legislative intent because an amendment may be defeated for many reasons. In re Matter of W.J.H. (1987), 226 Mont. 479, 484, 736 P.2d 484, 487. Furthermore, §§ 33-22-1201, MCA, et seq., merely authorized the Insurance Commissioner (Commissioner) to issue “limited benefit disability insurance” policies, which are exempt from certain premium taxes. Sections 33-22-1202 and -1205, MCA. Those polices are statutorily required to contain maternity benefits. Section 33-22-1203, MCA. Bankers Life has not demonstrated how the passage of this provision of the insurance code, seven years after the passage of the anti-discrimination statute, reflects any legislative intent regarding the unisex statute.
Bankers Life also argues that, because the unisex statute does not specifically refer to discrimination based on pregnancy, this Court is not free to insert such terms. On that basis, Bankers Life asserts that we are prohibited from concluding that an exclusion for expenses for normal pregnancy and childbirth in a major medical expense policy violates § 49-2-309, MCA.
Section 1-2-101, MCA, which precludes courts from “adding” or “inserting” language into a statute, has no bearing here because we do not add anything to § 49-2-309, MCA, by our decision today. Section 49-2-309, MCA, is clearly intended to cover all discriminations in insurance policies that are based solely on sex. As is usually the case, the legislature declined to enumerate all conceivable varieties of sex discrimination, but rather left the interpretation and application of this general anti-discrimination statute to the courts. Our task is merely to interpret § 49-2-309, MCA, to determine whether distinctions based on normal pregnancy and childbirth constitute discrimination on the basis of sex.
We conclude that discrimination on the basis of pregnancy is discrimination on the basis of sex and is, therefore, prohibited by the Montana -unisex insurance statute.
2) Do the major medical expense insurance policies issued by Bankers Life, which exclude expenses for normal pregnancy and childbirth, violate § 49-2-309, MCA?
The District Court concluded that the exclusion of normal pregnancy and childbirth expenses from Bankers Life’s policies violated § 49-2-309, MCA, reasoning that pregnancy is a physical condition requiring medical attention and the exclusion of maternity expenses imposes a hardship on women not imposed on men. On appeal, Bankers Life’s primary argument is that its policy covers expenses only for “sickness, injury or mental illness” and that a normal pregnancy does not qualify as a sickness or injury. It asserts, therefore, that the policy does not discriminate solely on the basis of sex; rather, it argues that the determinative classification is based on the fact that pregnancy is not a “sickness.”
We rejected a similar argument in Mountain States. There, the employer argued that normal pregnancy was not a typically covered “disease or disability” and, therefore, that the Montana Maternity Leave Act’s protection for women “disabled because of pregnancy” did not apply to normal pregnancies. This Court disagreed, and affirmed the district court’s conclusion that normal pregnancy resulted in an “inability to pursue an occupation because of physical impairment” and thus was covered by the Act. Mountain States, 609 P.2d at 1062. The argument was also rejected in Travelers, where the Colorado Supreme Court stated that pregnancy is a natural incident of adult life requiring medical attention, and the purpose of health insurance is to defray costs of needed medical treatment. Travelers, 759 P.2d at 1364. As stated by the District Court, pregnancy is a physical condition which requires medical attention, regardless of whether it is technically classified as a sickness.
In sum, Bankers Life’s major medical insurance policy excludes a significant major medical expense for women, a hardship which is not imposed on men. Thus, while men are — at least on the face of this policy — provided comprehensive coverage for major medical expenses, including male-specific conditions, women are not provided similar protection. See Quaker Oats Co. v. Cedar Rapids Human Rights Comm’n (Iowa 1978), 268 N.W.2d 862, 864 and Massachusetts Elec., 375 N.E.2d at 1198. We conclude that this disparity of treatment is, on its face, sex discrimination in violation of § 49-2-309, MCA.
Bankers Life also argues that, because its policy is not “comprehensive,” Travelers and other cited cases are distinguishable. This distinction is without import. Section 49-2-309, MCA, prohibits gender-based discrimination in all insurance policies. Regardless of whether Bankers Life’s policy is technically classified as “comprehensive” or “major medical,” discrimination on the basis of sex is proscribed by statute. In any event, if such a distinction exists other than as semantics, Bankers Life failed to make a record upon which either the Commission, the District Court, or this Court could so rule.
As an alternative approach, Bankers Life contends that covering normal pregnancy and childbirth expenses will constitute reverse discrimination against men because men will pay premiums for benefits that only women receive. We disagree.
Rejecting a similar argument, the Colorado Supreme Court stated that:
[ajlthough the risk of one class may not be precisely the same as the risks of the other class, an insurance policy which provides benefits comprehensively to males and females for medical conditions to which each class is separately subject cannot be deemed to discriminate against either class on the basis of sex.
Travelers, 759 P.2d at 1364. The same holds true here. The only gender specific exclusion in the policy at issue is the pregnancy exclusion; no male gender-specific exclusions are listed. Absent male gender-specific exclusions in Bankers Life’s policy, women are paying premiums for benefits only men receive. As noted in Miller-Wohl, treating pregnancy on an equal basis with other medical conditions merely places men and women on more equal terms. Miller-Wohl, 692 P.2d at 1254.
As a final matter, Bankers Life argues that the Montana Commissioner of Insurance is required by § 33-1-502(5), MCA, to review all policies for compliance with § 49-2-309, MCA, and withdraw approval if a policy violates the unisex insurance statute. Bankers Life asserts that, because the Commissioner approved the policies at issue, it is entitled to rely on that approval. This argument is without merit.
First, Bankers Life’s policies were approved prior to the passage of § 33-1-502(5), MCA, by the 1991 Legislature; at the time of that approval, the Commissioner had no duty to review the policies for violations of § 49-2-309, MCA. We also note that this argument is somewhat inconsistent with the following provision in Bankers Life’s policy:
Any provision of this policy which, on its effective date, is in conflict with the laws of the state in which you live on that date is amended to conform to the minimum requirement of such laws.
As set forth above, § 49-2-309, MCA, was enacted in 1983. The Charging Parties purchased their Bankers Life policies subsequent to October 1, 1985, while the unisex statute was in full force and effect. Pursuant to the policies themselves, then, the policies were automatically “amended” to conform to the requirements of § 49-2-309, MCA. Even absent such a provision in the policy itself, it is well established that provisions in insurance statutes are to be read into an insurance policy as though written therein. Sagan v. Prudential Ins. Co. (1993), 259 Mont. 506,_, 857 P.2d 719, 721.
Bankers Life’s policy excludes normal pregnancy and childbirth expenses from coverage, thus entitling women to fewer benefits in a major medical expense insurance policy because of their sex. We conclude that this differential treatment based on sex is discriminatory on its face. Therefore, we hold that the major medical expense insurance policies purchased by the Charging Parties from Bankers Life violate § 49-2-309, MCA, by unlawfully discriminating on the basis of sex.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, HUNT, TRIEWEILER, NELSON and WEBER concur.
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PER CURIAM.
This is an application for a writ of habeas corpus by an inmate of the Montana State Prison appearing pro se.
The petitioner was convicted in Yellowstone County on or about September 28, 1958, and sentenced to a term of two (2) years. He was received at the prison on or about October 1, 1958. On April 6, 1959, the prisoner escaped. Petitioner alleges that he was arrested in Ely, Nevada, on May 1, 1959. On June 11, 1959, he was convicted in Federal Court of the crime of Interstate Transportation of a stolen motor vehicle and sentenced to a term of two and one-half (2J/2) years in the Federal Penitentiary.
Although it is not shown in the petition, it is apparent that the prisoner was returned to Montana to complete his sentence and stand trial for the charge of escape after completion of his Federal sentence.
The petitioner alleges that because the State of Montana did not extradite him from Nevada upon his arrest on a Federal charge, that it waived any jurisdiction to later take custody. The petitioner cites two general statements from Corpus Juris which bear on comity between courts, but have no application to the problem involved.
Petitioner also petitions for the appointment of counsel and for a subpoena duces tecum. Finding no merit to petitioner’s claims and no basis for either counsel or a subpoena duces tecum, the applications are hereby denied.
|
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MR. JUSTICE DOYLE
delivered the Opinion of the Court.
This is an appeal from a judgment of the district court, which judgment affirmed an order of the Industrial Accident Board which denied the claim for compensation of Edmund Marker.
The claimant Edmund Marker, appellant herein, was injured on the 25th day of June, 1957, while working as a carpenter in building and constructing a new residence for Dan Zeiler in his individual capacity. Dan Zeiler was also a partner with Joe Zeiler doing business as the Hardin Meat Market. The partnership is the respondent here. The partnership was enrolled under Plan 2 of the Workmen’s Compensation Act on April 30, 1957.
Although the accident occurred on June 25, 1957, the employer’s report by the partnership was received by the Industrial Accident Board on June 12, 1958, or nearly a year after the accident. The attending physician’s report was received by the Board on June 23, 1958, lacking just two days of one full year of the date of the accident.
The Board heard the testimony and made certain findings of fact which are affirmed by the district court on appeal. Among the findings were the following:
“That the evidence showed the claimant’s injury occurred while employed in the construction of a private residence for Dan Zfeiler, an individual.
“That the evidence did not show that claimant was injured in an accident arising out of and in the course of his employment by Dan Zeiler and Joe Zeiler, a partnership.”
The appellant, claimant, attempted to show that he was employed by the partnership, that the partnership was a covered employer under R.C.M.1947, § 92-614, and thus he was entitled to be paid benefits for the injury.
The respondent partnership and the insurer contended that the claimant was not in the employ of the partnership at the time of the injury and accordingly was not entitled to benefits.
In other words, the question of fact to be determined by the Board and reviewed by the district court, (it being conceded that claimant was injured while working on a residence for Dan Zeiler) was whether he was working for an employer covered by the Workmen’s Compensation Act (the partnership) or whether he was working for an individual (Dan Zeiler) not covered under the provisions of the Act.
The specifications of error go to the findings of fact previously set forth.
Appellant’s brief is predicated on the view that he was employed by the partnership and was injured while doing work as directed by one of the partners; and that the question of whether the work that he was doing at the precise time of his injury was for one of the partners individually or for the partnership is immaterial. But, we observe that before any consideration can be given the problem discussed and argued by appellant the basic premise of employment must be met.
The testimony is revealing at this point. The appellant testified in part as follows:
“Q. What was the first job that you did when you got to Hardin for the Zeilers, or either of them? A. The first?
“Q. Yes. A. I done some work in his house.
“Q. Now is that the house where you had your accident? A. No.
“Q. What house was that? A. Well, the house he was living in.
“Q. And what kind of work was that? A. I framed in a bathroom in the basement, closed up a bathroom in the basement.
“Q. Following that job then, did you go to Avork on the house that he was building for himself? A. Yes.
“Q. Did you work steadily on that house until the time of your accident? A. No.
“Q. What else did you do in between times in the way of employment? A. Worked on this trapdoor.
“Q. That Avas a 3-hour job? A. Yes.
“Q. Those three hours Avere all spent at one time until the job Avas finished? A. Yes.
“Q. Aside from the 3-hour trapdoor job, however, you worked steadily on Dan Zeiler’s home? A. Except for the weather.
“Q. I am referring to jobs now, not particular hours. You went to work on the house about when? A. On which house?
“Q. I am referring now to the, now, to the new house that Dan Zeiler — A. First week in May — -I am not sure.
“Q. And your accident was — A. On the 25th of June.
“Q. So that you worked for nearly two months rather steadily on Mr. Dan Zeiler’s house, is that correct? A. Yes.
“Q. And your only other employment during that nearly two months of time was the three hours spent over at the meat market fixing a trapdoor? A. Yes.
“Q. Who actually handed you your paychecks? A. Mr. Zeiler.
“Q. Meaning Dan Zeiler? A. Dan Zeiler, yes.
“Q. I believe you stated that you thought you read the checks with which you were paid as being drawn on the Security Trust & Savings Bank in Billings, and on the Billings State Bank in Billings, to the best of your recollection? A. To the best of my knowledge, yes.
“Q. Now you have testified to some extent, Mr. Marker, respecting the activities of the partnership. You are fairly certain in your own mind that they ran the meat market as a partnership, and that they ran a slaughtering business as a partnership, and that they ran a — did you say a feedlot or a farm as a partnership? A. Yes.
“Q. Now isn’t it true that those things that I have mentioned earlier are the principal things that these men appeared to be engaged in as a business, I mean that was their regular day in day out method of making a living so far as you were able to observe? A. Yes, as far as I observed, yes.
“Q. When these other gentlemen came down from the meat market, I think Mr. Kopp and Mr. Yerger, they were there for a short time were they not? A. They was there on several different occasions, at different times.
‘‘Q. What would they do when they came out? Yard work around? A. Yard work.
“Q. I mean, cleaning up around the place or what ? A. No, they didn’t clean up that I know of. They had a little trouble with a eave-in and had to get the dirt out, at the time of the cave-in into the basement.
1 ‘ Q. Was that at that time when you needed a little extra help to do the job properly? A. Yes.
“Q. And that was the principal extent of their work, Kopp and Yerger? A. (No reply).
“Q. Do you remember anything else specifically they did around the place? A. They might have, I heard them talk about they had done some work during the weekend when I wasn’t there.
“Q. But you don’t know what that was? A. I don’t know what that was.”
On direct examination, Dan Zeiler testified in part as follows :
“ Q. Now, in the buying of materials for the residence, did you purchase those materials yourself? A. Yes, I bought them myself, but we compared prices and he was pretty well acquainted around Billings, here, and we compared prices here and there, and on several occasions we picked up lumber in Billings instead of Hardin.
‘‘Q. He was of great assistance to you in that respect? A. Yes.
“Q. How did you pay for these materials, from the market account or from your own personal account, or from what account, if you recall? A. Personal account, sir.
“Q. All of them? A. All, some of it was cash when I had a little lucky streak.
“Q. But when you refer to ‘lucky streak,’ it is something-disconnected with the partnership, is that right? A. Yes, sir.
‘‘Q. Now the payment to Mr. Marker for his work, that is, his wages, from what account was that paid? A. Personal account.
“Q. He has mentioned two banks? A. There was three, sir.
“Q. What accounts were those? A. Well, Security, Billings State, and Big Horn County State.
“Q. Were those any special accounts or were they all your personal accounts? A. Personal.
“Q. All three? A. Yes sir.”
Considerable effort is made by appellant to show that in fact this dwelling, upon which the appellant was working at the time of his injury, had some connection with the partnership. The inference is made that it was paid for with partnership funds. To the extent that the principal source of livelihood of Dan Zeiler is the partnership, partnership funds were used to build the home. However, this represented nothing but his personal income from the partnership, plus repayment of a loan previously made to his partner. To put this particular contention in proper perspective, we quote from the cross-examination of Mr. Dan Zeiler as follows:
‘ ‘ Q. Mr. Zeiler, as I gather from your testimony, your regular business upon which you regularly make your money that you live on consists of running a meat market in partnership with Joe, running a slaughter business and a food locker business, buying cattle and feeding them and slaughtering them, mostly for your own market, selling the excess and raising feed on a farm, most of which is used in your own feed lot. Does that sum up the principal business of the partnership? A. That is right, sir.
”Q. Is there anything else — I am not just talking about a casual or infrequent business transaction, but is there anything else that forms a part of the partnership business as a regular thing? A. Yes sir.
”Q. What is it? A. We do custom baling.
”Q. Custom baling? A. Yes.
“Q. That is hay baling? A. Yes, yes sir, hay and straw also.
“Q. Were you doing that at the time of this accident? A. I don’t remember for sure. 1 don’t think the first cutting was quite ready yet, but we was prepared to do it, yes sir, because we — had the baler and also did, we sold some of the hay because we had more than we needed, and that was a partnership deal also.
“Q. Now does that include all of your regular partnership business, I am talking about your established regular business? A. Well, I have to think about this a little bit here, it is kind of a buy and sell feed and stuff.
“Q. All right. Occasionally do you find some deal that is out of the ordinary that you will pick up to try to make some extra money on? A. That is right.
“Q. For instance, did you recently buy and sell some wool? A. That is right.
‘ ‘ Q. That, however, I judge is not the usual thing — in your snooping around and see a deal of some kind, you will take it? A. That is right, sir.
“Q. Those things, are handled by the partnership, not by you alone? A. Well, I generally do the transacting of it, but it is a partnership deal.
“Q. Do you use the partnership bank account to finance these deals? A. Yes, sir.
“Q. In all, does all of the partnership financing go through your partnership bank account? I mean if you buy and sell anything for the partnership, does it go through your partnership bank account? A. Yes sir.
“Q. You do not then, I judge, as a partnership, build houses for partnership income? A. Not for income — we have built each other a house, we never build for an income, just a place to live.
“Q. Some years ago did Joe Zeiler, your partner, build a house? A. Yes sir.
“Q. When was that? A. I think it was about ’54.
“Q. Did you and Joe withdraw a sum of money from the partnership? A. Yes sir.
“Q. Which was applied on the cost of that house? A. Yes sir.
“Q. How was that handled? A. It was withdrawn from the bank account, we each draw a check out of it.
“Q. About how much, if you know? A. $1,500 several times apiece.
“Q. You each withdraw an equal amount out? A. That is right sir.
“Q. And then was all of the money that was drawn out, both yours and Joe’s, applied on his house? A. Yes sir.
“Q. Have you been paid back any of that money that you withdrew and turned over to Joe? A. Not yet sir.
“Q. You didn’t take any promissory note for it? A. No sir.
“ Q. Was it a gift to Joe? A. No, not hardly.
‘' Q. You regard then that actually that represents money that sooner or later should be paid back to you? A. Yes sir.
“Q. Now when you said a while ago that your expenses for building your house would be partly reimbursed by partnership funds, what plan did you have in mind? A. Well, I withdraw a cheek out of the banking account.
“Q. Would that be the same kind of an arrangement that was put up when Joe built his house? A. Well, we figured it that way, yes sir, after we got well enough heeled again.
“Q. That hasn’t been done to date? A. No sir.
“Q. Did you arrange for that system Avhen Joe built his house, that is, an equal withdrawal of money because Joe was short of funds to proceed with his house? A. Well, at that time I hadn’t figured on building one yet, see, but I knew I Avould get my money because I loaned him some before.
“Q. You regarded it, in effect, as a loan? A. That is right.
“Q. And a personal loan to Joe? A. Well, Ave just didn’t have the money, and, I mean he didn’t have the money to finish his house.
‘ ‘ Q. That’s what I am driving at, you loaned him the money or arranged for this money to be available because he didn’t have the financing to go ahead with the house on his own? A. Yes sir.
“Q. Now, has it been your plan in order to recoup that money, to withdraw a sum, both you and Joe, from the partnership whenever it is well enough heeled to equalize the money that Joe has gotten out of the partnership? A. That is both of our plan.
“Q. That is the arrangement between you? A. Yes sir.
“Q. That is what you mean — I believe you said — the partnership would reimburse you for part of the expense of that house? A. Yes sir.
“Q. Why hasn’t that been done to date? A. Didn’t have enough money.
“Q. When the partnership finally does accumulate enough surplus, then you will put that plan into effect? A. Yes sir, we just bought that farm last year and we kind of run our resources a little short, but—
“ Q. To make it perfectly clear, when you do accomplish this plan that you have in mind, both you and Joe will withdraw an eqnal amount of money from it, from the partnership and then that money will be turned over to you to be applied on your house expenses, is that right? A. Yes sir.
“Q. You are not planning to withdraw that money directly from the partnership in one check, but rather planning to take it out in two separate amounts — an amount for Joe and an amount for you, is that right? A. Yes sir.
“Q. Doesn’t it amount simply to this: That when Joe was building his house, there was some money in the partnership, and you decided to make a distribution of partnership funds in an extra large amount so Joe would have money available to build his house? A. Well, I didn’t need the money at that time, and he needed it, so we went about it that way just to keep the partnership equal.
“Q. You don’t have any written papers? A. No sir.
“Q. In connection with that? A. No sir.
“Q. Do you claim any interest by reason of being a partner with Joe in Joe’s house? A. No sir.
“Q. You have no claim to that house whatsoever? A. No sir.
“Q. Does Joe have any claim that you know of to your house by reason of any transactions that you have had? A. No sir.
“Q. Do you regard that house as your own? A. Well, I have got a wife and several children.
“Q. It is on your own ground, isn’t it? A. Yes sir.
“Q. Does the lot, does the partnership have any interest in the lot upon which the house sits? A. No sir.
“Q. Did you pay for that lot yourself? A. Yes sir.
“Q. Out of your own personal funds? A. Yes sir.”
On the general employment relationship, Mr. Dan Zeiler testified on cross-examination as follows:
“Q. Now, respecting commands that might be given to Mr. Marker regarding his general employment, you made the statement that if Joe had wanted him, you thought undoubtedly some arrangement could be made for Joe to use him? A. Yes sir.
‘ ‘ Q. And I think in that connection, you said that he would obey Joe’s commands as well as your own, is that right? A. Yes sir.
‘ ‘ Q. However, when he was working on your own house, did you expect him to follow your directions as distinguished from Joe’s? A. Well, if he had needed help, I would let him have it, but it was only a short period.
“Q. You didn’t expect Joe to go down and tell Mr. Marker how to build your house? A. No sir.
‘ ‘ Q. When he was working on your house, he was your employee? A. Yes sir.
“Q. Was tbe arrangement with Mr. Marker something like this: You went to talk to him, there was some jobs to be done, your house and so, and then some partnership business — that is, the slaughter house and I think what was the feed lot? A. Yes sir.
“Q. And was that arrangement something like tins: That you would keep Mr. Marker busy, give him a job until- such time as the partnership affairs were ready to proceed? A. We planned it that way.
“Q. Well, he planned to be working on your house and be your employee until such time as you were ready on those other jobs? A. Yes sir.”
Incorporated in the record is the payroll of the partnership, Hardin Meat Company, showing each check paid by the partnership from May 1, 1957, to July 9, 1957, and these exhibits further disclose that where the check was paid for employment by an employee of the partnership, there was State and Federal Withholding Tax, Social Security, and the net wages reflected in the exhibit. It is significant that during this' entire period the appellant’s name does not appear on the books of the partnership.
From the foregoing quotations, and taking all of the testimony and exhibits together, the following facts are apparent-:
1. The partnership made no claim of interest in the Dan Zeiler house.
2. Other than a few small items, identified in Exhibit No. 1 presented at the trial before the district court, the materials that went into the house were paid for by Dan Zeiler.
3. The claimant’s wages were paid by Dan Zeiler individually, and not by the partnership.
4. The claimant took his orders in the construction of the house from Dan Zeiler. The other partner, Joe Zeiler, had no say whatsoever in the construction of the house.
5. The house was erected on property belonging to Dan Zeiler individually.
6. The partnership did not make any withholding for income tax purposes on the wages of claimant. He was not carried under Social Security rolls. During the entire period of time in question, he received no wages from the partnership.
7. The employer’s report was not made until almost one year after the accident.
8. Doctor’s report was not made until one year after the accident.
9. The relationship of brother-in-law existed between the claimant and Dan Zeiler.
From the foregoing testimony and fact summary it can be seen that there was substantial evidence, uncontradicted for the most part, that at the time of the injury the claimant was in the employ of Dan Zeiler as an individual and was not in the employ of the partnership.
The dissenting opinion of Mr. Justice John C. Harrison ignores the fundamental, long-established rule of this court that if there be substantial evidence to support the findings of fact (here both the Industrial Accident Board and the District Court) this court will not reverse on appeal.
The dissenting opinion fails to mention or contemplate the positive testimony that proves the hiring and work were for the individual, Dan Zeiler, in the first instance. As a consequence of this fact, the status of employer-employee never existed between the Hardin Meat Company and the claimant.
It should be further noted in the dissent that comment is made on the fact that other employees were compensated out of partnership funds. This statement attains the apex of truthful fact, and they were so paid as they were partnership employees, as is reflected in the record.
This was and is one of the basic reasons that disprove the contention of the claimant.
Under our oft-repeated holding that we will not reverse the finder of fact unless the evidence clearly preponderates against it, we must affirm the district court. See Maroney v. Dyll, 137 Mont. 187, 351 P.2d 373; Sands (Sands Lbr. Co.) v. Superior Building Co., 136 Mont. 531, 349 P.2d 314. It follows that the judgment should be and is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICE CASTLES concur.
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ME. CHIEF JUSTICE HAEEISON
delivered the Opinion of the Court.
This is an action to restrain the defendants from levying, assessing, and collecting, water and bond taxes, and to enjoin any and all further acts and proceedings pertinent to the County Water District of Billings Heights. From a judgment of the district court of Yellowstone County for the defendants, plaintiffs appeal.
The named plaintiffs are owners of land which has been included in the County Water District of Billings Heights; the named defendants are certain officials of Yellowstone County, Montana, and the directors of the County Water District of Billings Heights, which will be referred to hereafter as the Water District.
Approximately two miles northeast of Billings, Montana, lies an area known as Billings Heights. Close to 3,400 people reside in this area and some 900 homes and business establishments, as well as two schools, have been built in the area. At the present time neither a public water supply, nor a sewer system serves the area, consequently, the water and sewage needs of the inhabitants are served by the use of wells and septic tanks or cesspools.
In 1957, the Montana Legislature passed the “County Water District Act,” sections 16-4501 to 16-4534, E.C.M.1947, which permits the residents of an area such as Billings Heights to create a district for the purpose of building, operating, and maintaining their own central water supply and distribution system.
Pursuant to the provisions of the afore-mentioned Act, the Water District was established. The following sequence of events led to the establishment of the Water District.
On May 27, 1958, petitions were presented to the County Commissioners of Yellowstone County, requesting the establishment of the County Water District of Billings Heights. The commissioners resolved to set June 17, 1958, for an organizational hearing and to this end notice of this hearing was published in a newspaper, being the Billings Times, on May 29, and June 5, 1958.
On June 17, 1958, the Commissioners conducted the hearing at which protests were heard. The hearing was continued to June 27, 1958, at which time the Commissioners considered all the protests to date and made certain changes in the proposed boundaries.
On July 9, 1958, the Commissioners made a minute entry of its finding of the genuineness and sufficiency of the petition for creation of the Water District and the notice of hearing on the petition, and defined and established the boundaries of the Water District, and entered its finding that all lands which are benefited and no lands which are not benefited are included within the District.
On August 26, 1958, an election was held and the proposition to create the water district with the boundaries as revised, defined, and established by the County Commissioners of Yellowstone County carried by a vote of 414 to 155. On August 27, 1958, the Commissioners made an order declaring the Water District organized.
On August 29, 1958, the Secretary of State of Montana issued the certificate of incorporation to the Water District.
On November 26, 1958, defendants Doe, Dunbar, Griffing, Hadley, and Behard were elected directors of the Water District; and on December 22, 1958, the County Commissioners appointed defendant Hansen a director of the Water District.
On June 8, 1960, the District delivered to the Yellowstone County Commissioners an estimate of the amount of money re quired for the coming year for payment of expenses and claims against the District.
On July 15, 1960, by a vote of 671 in favor to 70 opposed, the question carried to incur a bonded indebtedness of $2,000,-000 to construct a water supply and distribution system to serve all land within the Water District.
On July 18, 1960, the Commissioners adopted a resolution of intention to levy upon all land in the District on an area basis a “water tax” to pay the expenses and claims against the District submitted on June 8, 1960. A hearing was set for August 15, 1960, and notice of this assessment hearing was given in accordance with the provisions of section 16-4527, R.C.M.1947, which had been amended on March 13, 1959, after the inception of the District in question.
On August 15, 1960, the aforementioned assessment hearing was conducted by the Commissioners, at which hearing the appellants appeared personally or by counsel to lodge protests.
On August 18, 1960, the Commissioners adopted a resolution overruling the protests and levied the water tax pursuant to the provisions of the Act.
At this juncture the plaintiffs by their amended complaint sought to restrain collection of the water tax and to enjoin any and all further acts and proceedings pertaining to the Water District.
The district court sitting without a jury heard the cause and in addition to its findings as hereinbefore summarized made several other relevant findings. First, the estimated cost of the water system is $1,450,000, and the total estimated assessment per acre of land within the District is $334.75; second, the increase in the value of the land as a result of the creation of the District will exceed the amount of the assessment per acre; and third, the water tax levied by the Commissioners is commensurate with the benefits received by each and every parcel of land within the District.
Based npon its findings of fact and conclusions of law, judgment was entered for the defendants.
Appellants’ three specifications of error attack the findings of fact and conclusions of law of the district court, and are keyed to the constitutionality of the County Water District Act and the procedure thereunder.
Appellants contend the Act is unconstitutional because (1) there is an unlawful delegation of legislative power and failure to set forth adequate standards, guides, and limitations, and, (2) the title to the Act is defective. Appellants also complain that they were deprived of due process because no adequate notice was given of the hearing to create the District. Finally, appellants contend that the manner of assessing the property on an area basis is unconstitutional.
Before inquiring into the merits of these contentions, we would reiterate certain fundamental principles which prevail when the constitutionality of legislative enactments is assailed. In School District No. 12 v. Pondera Co., 89 Mont. 342, 349, 297 P. 498, 501 (1931), we said, “If a statute is capable of two constructions, one of which will condemn it as unconstitutional while the other will preserve it, it is the duty of this court to give to the statute that construction which will vitalize it.” To the same effect in Henderson v. City of Missoula, 106 Mont. 596, 599, 79 P.2d 547, 548, 116 A.L.R. 1425 (1938), this court quoting from State ex rel. Tipton v. Erickson, 93 Mont. 466, 19 P.2d 227, stated: “ 'In the determination of the question of the constitutionality of any act, a statute, if possible, will be construed so as to render it valid. * * * It is presumed to be constitutional, and all doubts will be resolved in favor of its validity if it is possible to do so. * * * The invalidity of a statute must be shown beyond a reasonable doubt before the court will declare it unconstitutional. * * * And a statute will not be held unconstitutional unless its violation of the fundamental law is clear and palpable.’ ”
Bearing in mind the foregoing fundamental constitutional doctrine, we turn to the issues raised by appellants’ contentions.
Appellants first contend that the legislation in question is unconstitutional because it delegates to a corporation the power to tax for the general health, safety, and welfare of property owners without regard to benefits to the property so taxed.
Section 16-4527, provides that the land benefited by the creation of the water district shall bear the cost through the imposition of a “ ‘county water district bond tax; and until all other expenses or claims are fully paid, levy upon all of the lands of the district and [the board of commissioners must annually] cause to be collected a tax sufficient for the payment thereof to be known as the ‘-county water district water tax.’ ” This poses the question: Are the foregoing taxes special assessments, or are they general taxes?
Relevant at this point is Toole County Irr. Dist. v. State, 104 Mont. 420, 434, 67 P.2d 989, 992 (1937), where, in connection with irrigation districts, this court said:
“Irrigation assessments are not taxes within the meaning of this constitutional and statutory exemption. Buffalo Rapids Irr. Dist. v. Colleran, 85 Mont. 466, 279 P. 369, 372; see, also, City of Kalispell v. School District, 45 Mont. 221, 122 P. 742, 744, Ann.Cas.l913D, 1101. In the former case it was held: ‘An irrigation district is neither supported by appropriation of public funds, by taxation, or by private donation. True, funds for the maintenance and operation of the district are raised by assessments levied against the property within the district, but these levies are in the nature of special assessments for local improvements * * * entirely distinct from general taxes for state, county, school district, and municipal purposes; * * * they may even be levied against public property in spite of the constitutional exemption, * * * and no part of the revenue derived therefrom reaches the coffers of the state or its political subdivisions organized for governmental purposes.’ (Citing cases.) ”
Merely referring to the charges to be made under section 16-4527, supra, as “taxes” does not determine their true nature. In Vail v. Custer County, 132 Mont. 205, 217, 315 P.2d 993, 1000 (1957), this court stated:
“A tax is levied for the general public good. It creates a lien. An assessment is imposed against specific property to defray the cost of a specific benefit to that property, the benefit to be commensurate with the assessment. ’ ’ To like effect, citing Hamilton on the Law of Special Assessments, sections 233-241, this court said in Stettheimer v. City of Butte, 62 Mont. 297, 300, 204 P. 1039, 1040 (1922):
“The only basis upon which special assessments for local improvements are sustained is that the particular property charged derives a special benefit substantially commensurate with the burden imposed upon it, and it follows that, if a particular piece of property cannot be benefited by an improvement, it cannot be made to bear any part of the cost.”
Are the benefits commensurate with the amounts assessed in the instant case? Appellants think not and set forth several reasons in this regard. First, they note the testimony of 43 owners in the District to the effect that creating the District would cure a health problem, but there would be no special benefits nor enhancement to the value of their property. Apparently the overwhelming majority of owners in the District think otherwise because 414 against 155 voted to create the district and 671 against 70 voted to incur a $2,000,000 bonded indebtedness to construct the system. To be sure, a health problem will be cured; but, cannot this result in special benefits to the land within the District? We think it can. The record is replete with affirmative evidence elicited from appraisers and owners indicating that the lands within the District would be specially benefited and their value enhanced. The trial court so found and we cannot say there is not substantial evidence in the record to support this conclusion.
Next appellants urge that all the land within the Dis triet is not specially benefited because, at tbe outset, the water lines will not serve various lands which have not yet been subdivided with streets or alleys dedicated. In support of this contention appellants cite Crutchfield v. Nash, 84 Mont. 556, 569, 276 P. 938, 943 (1929), wherein this court stated:
“An assessment cannot be predicated upon future action of the public authorities or future legislation, and hence, if property cannot be benefited by a proposed improvement, unless subsequent work is done for which no provision is made, the property cannot be specially assessed. The reason for this rule is plain; no matter how good the intention of the authorities may be to extend the system proposed by the creation of additional districts, at the time, or at a future time, their action must depend upon the sanction of the people interested, and this sanction may be withheld. [Citing authority.] ”
In the instant case the evidence shows that provision has been made for subsequent work, which work does not depend upon the sanction of the people. To support this conclusion we need only note that the inhabitants of the District voted to incur a $2,000,000 bonded indebtedness for a system costing $1,-450,000.00'; also, the evidence shows that an added $200,000 plus will be available because of a reduced interest rate. It would seem then that adequate plans have been made to serve all of the lands within the District, and to take advantage of the water system the dissident landowners need only dedicate streets and alleys.
Appellants next assail the constitutionality of the Act on the ground that there is an invalid delegation of power by the legislature because inadequate standards are provided in the County Water District Act.
Specifically, appellants stress the inadequacy of the sections of the Act dealing with revenues, because they purportedly do not limit indebtedness or obligations. The question of delegation of legislative power has been hitherto considered by this court in City of Missoula v. Missoula County, 139 Mont. 256, 362 P.2d 539 (1961), which, quotes from Bacus v. Lake County, 138 Mont. 69, 354 P.2d 1056, (1960) as follows:
“ ‘The law-making power may not be granted to an administrative body to be exercised under the guise of administrative discretion. Accordingly, in delegating powers to an administrative body with respect to the administration of statutes, the legislature must ordinarily prescribe a policy, standard, or rule for their guidance and must not vest them with an arbitrary and uncontrolled discretion with regard thereto, and a statute or ordinance which is deficient in this respect is invalid. In other words, in order to avoid the pure delegation of legislative power by the creation of an administrative agency, the legislature must set limits on such agency’s power and enjoin on it a certain course of procedure and rules of decision in the performance of its function; and, if the legislature fails to prescribe with a reasonable clarity the limits of power delegated to an administrative agency, or if those limits are too broad, its attempt to delegate is a nullity.
“ ‘ * * * On the other hand, a statute is complete and validly delegates administrative authority when nothing with respect to a determination of what is the law is left to the administrative agency and its provisions are sufficiently clear, definite, and certain to enable the agency to know its rights and obligations.’ (Emphasis supplied.) 73 C.J.S. Public Administrative Bodies and Procedure, § 29, pp. 324, 325.”
With respect to indebtedness and obligations, a county water district incorporated under the provisions of section 16-4514, R.C.M.1947, shall broadly have the power to borrow money, levy taxes, and make contracts. Without quoting the entire Act, we observe that subsequent provisions provide standards and guides with regard to revenues. For example, the power • to levy taxes is carefully detailed in sections 16-4527 through 16-4528; the power to make contracts is to be exercised by the Board of Directors in the manner prescribed by section 16-4516; sections 16-4517 through 16-4522, set forth guides concerning the power to incur bonded indebtedness, whereby such a proposition is submitted to the electors after due notice; the power to fix water rates to pay operating expenses is detailed in sections 16-4526 through 16-4527; finally, the electors are protected from arbitrary action on the part of officials by virtue of recall, initiative, and referendum.
Accordingly, we hold that the provisions of the County Water District Act are sufficiently clear, definite, and certain to enable the County Water District to know its rights and obligations.
Appellants next attack the constitutionality of the Act on the ground that its title is defective. Art. V, § 23, Mont. Const, provides:
“No bill, except general appropriation bills, and bills for the codification and general revision of the laws, shall be passed containing more than one subject, which shall be clearly expressed in its title; but if any subject shall be embraced in any act which shall not be expressed in the title, such act shall be void only as to so much thereof as shall not be so expressed.”
The title to the County Water District Act is as follows:
“An Act to Provide for the Incorporation and Organization and Management of County Water Districts; to Provide for the Acquisition of Water Rights or Construction Thereby of Waterworks; and for the Acquisition of All Property Necessary Therefor; and Also to Provide for the Distribution and Sale of Water by Said Districts; Providing for Severability and An Effective Date.” Chapter 242, Laws of 1957.
Appellants claim that the provisions of the Act for the levy and collection of taxes, decreeing such taxes a lien, authorizing a bonded indebtedness, and provisions for initiative, referendum, adding to the District, and exclusion of territory are not expressed in the above-quoted title and are therefore void.
The claim of invalidity of title has been presented to this court numerous times in the past. State v. McKinney, 29 Mont. 375, 380, 74 P. 1095, 1096 (1904), is noteworthy in this respect, and we deem the following rules enunciated in the McKinney case applicable to the case at bar. This court stated:
“For a clear understanding of the question under consideration, it seems important to announce a few general legal principles, viz.:
“First. The purposes of this constitutional provision are to prevent the legislature from the enactment of laws surreptitiously; to prevent ‘logrolling’ legislation; to give to the people general notice of the character of proposed legislation, so they may not be misled; to give all interested an opportunity to appear before committees of the legislature and be heard upon the advisability of the proposed legislation; to advise members of the legislature of the character of the proposed legislation, and give each an opportunity to intelligently wateh the course of the proposed Bill; to guard against fraud in legislation, and against false and deceptive titles. These purposes have been so plainly announced by this court in numerous opinions that a statement of the rule and a citation of cases would seem sufficient. [Citing cases.]
“Second. While all the provisions of the constitution are ‘mandatory and prohibitory’ (Art. Ill, Sec. 29), yet the courts, bearing in mind that the legislature is a co-ordinate branch of the government, and that its action, if fair, should be sustained, have given this section of the constitution a liberal construction, so as to not interfere with or impede proper legislative functions. [Citing cases.]
“Third. The legislature is the judge, to a great extent, at least, of the title which it will prefix to a Bill; and the court has no right to hold a title void because, in its opinion, a better one might have been used. [Citing cases.]
“Fourth. The title is generally sufficient if the body of the act treats only, directly or indirectly, of the subjects mentioned in the title, and of other subjects germane thereto, or of matters in furtherance of or necessary to accomplish the general objects of the Bill, as mentioned in the title. Details need not be mentioned. The title need not contain a complete list of all matters covered by the Act. [Citing cases.]
“Fifth. If the court, after an application of all these principles, is still in doubt as to the constitutionality of the Bill, it should sustain the Act. [Citing cases.] ”
Applying the foregoing principles to the instant case, can we hold that the County Water District Act is invalid because the title does not refer to the Water Tax, Bond Tax( Initiative, Referendum, and the Procedure for Adding Land To or Excluding Land From the District? The title to the Act provides for the construction of waterworks. Certainly a means of financing such an undertaking must have been contemplated by the legislature; hence, we hold that the provisions in the body of the Act for Water Tax and Bond Tax are germane to that part of the title dealing with construction of waterworks and such taxes are necessary to accomplish the general objects of the Bill.
The provisions for initiative, referendum, and the procedure for adding to and excluding from the District are germane to that portion of the title dealing with the management of the District. We think that one who reads the title to the Act in question would be reasonably advised of the contents of the bill; therefore, we hold that the title is not defective so as to render the Act invalid.
Appellants next complain that they were deprived of due process because adequate notice was not given of the hearing to create the District. Under the provisions of section 16-4503, the petition for a County Water District must be published for ten consecutive days in a daily newspaper or in two issues of a weekly newspaper printed and published in such county, together with a notice stating the time of the meeting at which same will be presented. This requirement was met in the instant case and after a hearing on the petition, the boundaries of the District were set. Appellants admit that such action is not a taking of property, however, they assert there is a constitutional violation of due process, because appellants without notice were foreclosed from challenging the petition, notice and establishment of boundaries.
Appellants cite no authority to support their position. Indeed, the authority seems to be to the contrary. Recognizing the fundamental constitutional rule that no person shall be deprived of property without due process of law, we need only observe that the hearing at which the boundaries of an improvement district are established does not constitute a taking of property. On the subject of hearing, the United States Supreme Court has said: “There is no constitutional privilege to be heard in opposition at the launching of a project which may end in an assessment. It is enough that a hearing is permitted before the imposition of the assessment as a charge upon the land [Citing cases.] or in proceedings for collection afterwards. [Citing cases.]” Utley v. City of St. Petersburg, 292 U.S. 106, 54 S.Ct. 593, 595, 78 L.Ed. 1155 (1934). The foregoing rule is applicable in the instant case, thus disposing of appellants’ contention concerning lack of due process at the hearing to establish the district.
It should be noted that the Utley case, supra, requires a hearing be permitted before the imposition of the assessment. In this regard, section 16-4527, provides, prior to the levy of any tax or assessment, the Board of County Commissioners must give notice of its intention to levy and collect by (1) posting notice in five public places within the boundaries of the lands upon which the tax is to be levied; (2) by publishing notice for ten consecutive days in a daily newspaper or in two issues of a weekly newspaper published in the county wherein the District is located; and (3) by forwarding by registered mail, at least ten days prior to the hearing on the assessment, a copy of the notice to the owners of taxable real property within the district.
Clearly, the foregoing notice requirements afford due process in the levy of assessments. However, appellants point out that these provisions were not added to the County Water District Act until March 1959, whereas the Water District was incorporated in August 1958, when no such provisions providing for due process in notice of assessments existed. We need only point out that assessments were not levied until 1960, at which time the notice provisions were adequate. Appellants contend such a result would make the added notice provisions retroactive or retrospective and cite 50 Am.Jur., Statutes, § 482, p. 505, as follows: “A retrospective law, in a legal sense, is one which takes away or impairs vested rights acquired under existing laws, or creates a new obligation and imposes a new duty, or attaches a new disability, in respect of transactions or considerations already past.”
As stated previously, the mere fact that appellants’ land was included in the improvement district is not a taking of property. The owners’ rights are not affected until the property is taken or damaged, or there is an assessment of benefits against it. See Beck v. Missouri Valley Drainage District, 46 F.2d 632 (8th Cir. 1931), cert. denied 284 U.S. 618. In the instant case the appellants’ rights in their land were not affected until the levy of assessment in August 1960, at which time the provisions of the Act were such as to afford them due process.
Finally, appellants contend that the manner of assessing the property on an area basis is unconstitutional. Applicable is R.C.M.1947, § 16-4527, which provides in part:
* * each lot or parcel of land to be assessed shall be assessed with that part of the amount of money required which its area bears to the total area of all the lands to be assessed; or said assessment may, at the option of the board of county commissioners, be based upon the taxable valuation, as stated in the last completed county assessment roll, of the lots or parcels of land, exclusive of improvements thereon, within said district, in which case, each lot or parcel of land to be assessed shall be assessed with that part of the amount of money required which its taxable valuation bears to the total taxable valuation of all of the lands to be assessed.”
To support their argument that the water tax is grossly disproportionate appellants cite 48 Am.Jur., Special or Local Assessments, § 65, p. 620, which recognizes the general rule that a special or local improvement may be apportioned according to area although the lots or parcels are of different value, but further states: “If, however, the improvement is of such character that there is no reasonable presumption that substantial justice generally will be done by an assessment according to area, but the probability is that the parties will be taxed disproportionately to each other and to the benefit conferred, the assessment cannot stand against the complaint of one of them.
“Differences in an assessment according to area which are not based upon any consideration of differences in benefit received, but are established mechanically, although in obedience to criteria provided by statute or municipal charter, which differences result in arbitrary discrimination violate the Fourteenth Amendment to the Constitution.”
The foregoing qualification to the general rule that assessments may be apportioned according to area depends upon whether or not the assessment is disproportionate to the benefits received. The evidence shows that the property assessed in the Water District will be enhanced to the extent of the burden imposed, therefore we cannot hold that the method of assessment provided for in the County Water District Act is violative of the Fourteenth Amendment to the constitution.
The judgment is affirmed.
MR. JUSTICES ADAIR, DOYLE, CASTLES and JOHN C. HARRISON, concur.
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MR. JUSTICE DALY
delivered the Opinion of the Court.
This is an appeal from the district court’s judgment declaring the last will and testament of Fannie Blackmer and the execution of certain deeds by her to be null and void. Plaintiffs brought the action to have the will declared null and void because of Fannie Blackmer’s mental incompetence at the time of making the will, and alleged undue influence exerted npon her by defendants.
These facts are not in dispute: Lucian and Fannie Blackmer were long time residents of the Flathead area. They had three ■children, Doris Yenne, Howard and Boyd. The Blackmers accumulated considerable holdings, including four hundred .acres of land with two dwelling units; approximately $26,501 in United Funds; United States bonds in joint tenancy with son Howard in the face amount of $9,400 with accumulated value totaling $15,745; bank accounts in excess of $5,000; and miscellaneous farm machinery, equipment and tools. The real property and machinery were owned in the name of the father, Lucian Blackmer. The bonds had been put in Lucian and Howard’s name at the time they were purchased while Howard was in the military service.
In 1959, Lucian and Fannie Blackmer made wills leaving their property to each other, if living. But if deceased, then 160 acres to Boyd, 160 acres to Doris, and 80 acres (including the house) to Howard who would also get the joint tenancy bonds on Lucian’s death. Lucian recited in his will that although it appeared Howard was getting less, he actually was not, because of the provisions relative to the bonds.
In July 1968, the mother Fannie was hospitalized and diagnosed as having arteriosclerosis generalized, cerebral arterio coronary sclerosis, and senility. Upon discharge from the hospital she went to the home of son Boyd and his wife Lorraine (defendants herein) where she resided until admitted to the hospital upon her final illness in May 1970.
The father Lucian Blakner continued to live in his own home. He remained keen and alert, taking an active part in the management of the farm until his death on November 22, 1969, at the age of 89.
The facts in contention are numerous and concern the competency, undue influence and unnatural distribution of Fannie’s second will dated December 29, 1969, and the execution and delivery of certain deeds by Fannie, executed on February 13, 1970.
Both plaintiffs and defendants called numerous witnesses to testify as to Fannie’s mental competency and whether or not there was. undue influence at the time she executed her will dated December 29, 1969. Included among the witnesses were her attorney, doctor, friends, relatives, and even casual acquaintances. All the witnesses ■ testified that Fannie was a neat person and always took care of herself; that she always knew them and she could carry on an intelligent conversation. All the witnesses testified that- she looked old, and had poor eyesight. Some testified that she became confused, especially as to time; that she was unable to dial the telephone herself because of her eyesight and at times she became upset. There was testimony that at one time she was upset because of a misunderstanding between her daughter Doris and herself over whether she had to sell her furniture. Other testimony was that she became upset when her daughter-in-law, Howard’s wife, stated she tried to lock her grandson in the bathroom to keep him from going outside.
There was testimony that the father, Lucian, conducted all the business of the family and Fannie’s business management was limited to the running of the kitchen. But there was also testimony by Boyd Blackmer that Lucian always talked decisions over with Fannie before making them.
The facts relevant to the actual making of the will are more limited. Lorraine Blackmer, defendant, testified that her father-in-law, before his death, had gone to see D. Gordon Rognlien, his attorney, twice to change his will but he was unable to see him on either occasion. She did not testify as to how her father-in-law wanted to change his will. Boyd Blackmer testified that Fannie said she wanted to change her will to read the way Lucian wanted the property distributed. Boyd was to get an additional 60 acres to prevent his septic tank from being cut in half. But, upon further testimony Boyd stated that no additional acres from the original disposition of property in the first will was necessary to prevent his septic tank from being cut in half.
It is undisputed that Boyd drove Fannie to her attorney, D. Gordon Rognlien, on the day she discussed drawing up a new will; that changing her will was the sole purpose of her visit to Rognlien’s office and that Boyd accompanied her ■every time that she went to see her attorney. Rognlien testified that Boyd did not sit in on the first meeting between btmself and Fannie when she gave him instructions on how the change in the will was to be accomplished. But Boyd testified that he was present at all the meetings between Fannie and Rognlien. Rognlien testified that he advised Fannie to use deeds to convey her property; that she conveyed 100 acres to Doris Yenne by deed, and then conveyed the remainder of the land to Boyd by deed. These deeds were inadvertently recorded, so Doris and Boyd reconveyed to Fannie and she then executed three new deeds, one conveying 100 acres to Doris which was -placed in escrow, and two to Boyd, one conveying property outright, the other placed in escrow with Doris’ deed. At the time of making the first deeds, Fannie also made a new will leaving the remainder of her property not conveyed by the deeds to her children equally. This included personal property valued at $25,328.16.
There was much dissatisfaction expressed to Rognlien by Doris Yenne and her husband over the distribution of the property. Rognlien then called a meeting of Fannie, Boyd, Doris and Howard. With all of them present, Doris asked Fannie if this was how she wanted things done, to which Fannie replied “This is just the way I want it.”
The trial court’s finding of fact No. 20 stated “That at no time was Fannie acting under duress, nor was she insane” and finding of fact No. 21 stated “That on December 29, 1969, and on February 13, 1970, by reason of senility, her serious condition and love of Boyd and Lorraine, Fannie I. Blackmer was subject to undue influence. That by reason of the same, an extremely close and confidential relationship existed between Fannie, Boyd and Lorraine.”
Then in its conclusions of law the court stated:
“1. That a fiduciary or confidential relationship existed between Mrs. Blackmer, Boyd and Lorraine Blackmer from the time of her release from the hospital in 1968 until the time of her death;
“2. That because Mrs. Blackmer was 85 years of age, frail in body, nearly blind, dependent upon others for her well-being, inexperienced in business affairs, and suffered from cerebral arterio-sclerosis and senility, the nature of the trans actions and the reasons given therefor coupled with the confidential relationship, gives rise to a presumption that the Will and Deeds were not freely, fairly and understandably made.
“3. That the delivery of deeds by Fannie I. Blackmer to D. Gordon Rognlien, to be held in escrow, constituted a good, valid and legal delivery of said Deeds.”
Defendants present five issues for review, however our determination can rest on two issues.
1. Whether the judgment of the district court is supported by substantial credible evidence?
2. Does the court’s conclusion of law No. 2 give rise to a presumption of undue influence, or a presumption that a deed and will were not understandably and freely made?
Argument by the parties concerns the connotation of the presumption as used by the trial court in its conclusion of law No. 2. Disregarding matters raised outside the record we will only comment that these circumstances in Montana raise no presumption of any kind. Undue influence or incompetence is never presumed and must be proven, like any other fact. In re Cocanougher’s Estate, 141 Mont. 16, 375 P.2d 1009.
In Estate of Maricich, 145 Mont. 146, 157, 400 P.2d 873, 879, this Court said:
“ ‘We agree that the right to make disposition of one’s property by will is a right guaranteed by law and is as valuable as any other property right; that the beneficiaries under a will are entitled to protection just as are other property owners * * ”
We also stated in Maricich that the law in the cases concerning undue influence places upon the contestant the burden of proof in showing substantial evidence of undue influence and recited a five point test to determine whether or-not there is undue-influence in executing a will. The five points are:
“(1). Confidential relationship of the person attempting to influence the testator;
“(2). The physical condition of the testator as it affects his ability to withstand the influence;
“(3). The mental condition of the testator as it affects his ability to withstand the influence;
“(4). The unnaturalness of the disposition as it relates to showing an unbalanced mind or a mind easily susceptible to undue influence, and
“(5). The demands and importunities as they may affect particular testator taking into consideration the time, the place, and all the surrounding circumstances.”
Undue influence is defined by section 13-311, R.C.M.1947, as:
“1. In the use, by one in whom a confidence is reposed by another, or who holds a real or apparent authority over him, of such confidence or authority for the purpose of obtaining an unfair advantage over him;
“2. In taking unfair advantage of another’s weakness of mind; or
“3. In taking a grossly oppressive and unfair advantage of another’s necessities or distress.”
It is undisputed that Fannie Blackmer lived with defendants from 1968 until her death in 1970. This would provide ample opportunity for the exercise of undue influence by defendants on Fannie. But a showing of opportunity is not enough. This Court stated in Hale v. Smith, 73 Mont. 481, 488, 237 P. 214, 216: * * It is'’not sufficient that the testator may have been influenced by the beneficiary in consequence of their fiduciary relationship in the ordinary affairs of life or that he lived with the beneficiary at the time of the execution of the will, in consequence of which she may have had better opportunity than others to ingratiate herself with him. Mere general influence in the affairs of life or method of living at the time of the execution of a will by a testator is not proof ■ of undue influence in the contemplation of our state, and, in order to establish it as a fact, it must be shown by proof that it ivas exercised upon the mind of the testator directly to procure the execution of the will. Mere suspicion that undue influence may have or could have been brought to bear is not sufficient. It is never presumed, and must be proven like any other fact. * * (Emphasis supplied.)
Therefore, it must not only be shown that Fannie lived with defendants, but that defendants exercised undue influence upon Fannie in the execution of the will and the deeds. No such proof was made here.
Much testimony was elicited from witnesses concerning Fannie’s mental and physical health. She was an elderly person; she was 85 years of age. Many of her problems were because of her age, including poor eyesight, a sometimes failing memory, occasional confusion, and a diagnosis of senility, arterio sclerosis generalized, and cerebral arterio coronary sclerosis. But all this does not make Fannie Blackmer testamentally incapacitated.
In Estate of Bodin, 144 Mont. 555, 560, 398 P.2d 616, 619, a ease in which the facts are quite similar but more flagrant than the instant case, this Court held 79 years old Minnie Bodin to be mentally competent even though she made her will from her hospital bed, dying from cancer and receiving narcotics and other medication to relieve her pain. The Court stated:
“ ‘And a testator is competent if he is possessed of the mental capacity to understand the nature of the act, to understand and recollect the nature and situation of his property and his relations to persons having claims on his bounty whose interests are affected by his will. In re Smith’s Estate, 200 Cal. 152, 252 P. 325. The “testator must have sufficient strength and clearness of mind and memory to know, in general, without prompting, the nature and extent of the property of which he is about to dispose, and nature of the act which he is about to perform, and the names and identity of the persons who are to be the objects of his bounty, and his relation towards them.” Page on Wills (2d Ed.) § 141. [Citing cases.]”
Rognlien testified concerning his interview with Fannie about her will, and the preparation of the deeds: “Due to the fact of her age, due to the fact of her eyesight and due to the fact that she indicated a desire to make distribution unequally among her children I was very careful to examine her, talk to her and to be sure that she knew exactly what she was doing and what she wanted done. So I did make a special effort to convince myself that she was completely competent before I prepared her deeds. * * *” When later asked if he felt Fannie Blackmer was competent at the time of executing the will and deeds, Rognlien answered: “It is my opinion that she was completely competent and knew the nature of the business at hand and each time that I had occasion to talk to her about this.”
As stated heretofore there is no doubt that Fannie Blackmer was old and had infirmities associated with old age. These matters must be taken into consideration and correlated with the acts of influence presented to determine if in each case the acts amount to undue influence. Murphy v. Nett, 47 Mont. 38, 130 P. 451, cited and approved in In re Estate of Hall v. Milkovich, 158 Mont. 438, 492 P.2d 1388. Also the acts of influence must be as defined by this Court earlier in this opinion, and not mere suspicion, opportunity, love or confidential relationship or bad feeling or hate. An examination of the entire record before us fails to reveal substantial evidence of facts that support the findings and conclusions of the trial court.
The final question presented for consideration is whether there was sufficient delivery of the two escrow deeds executed by Fannie to Doris Yenne and Boyd Blackmer. Defendants’ exhibit F shows that the deeds were delivered to Gordon Rognlien, Charles Hash, or Kenneth O’Brien, with these instructions:
“I am delivering to you, or anyone of you two deeds, one to my daughter, Doris Yenne, and one to my son, Boyd Blackmer.
“I am making this delivery to my son and daughter pursuant to See. 67-1514 of the 1947 Revised Codes of the State of Montana, which is a constructive delivery. In making this delivery I am placing these deeds out of my possession and beyond my control.
“Both my said son and daughter know of this delivery and have given their consent thereto.
“Upon my death you are instructed to deliver the said deeds to the grantees named therein.
“Dated this 23rd day of February 1970.” These instructions were signed by Fannie Blackmer.
Plaintiffs claim that there was no intent to make a present transfer of title to the property; that there is a difference between a delivery under section 67-1512, R.C.M.1947, which defines escrow delivery and section 67-1514, R.C.M.1947, which defines constructive delivery. We find there is no need to discuss the difference.
It is sufficient to say that this delivery comes within the meaning of section 67-1512 and is therefore a sufficient delivery. In Plymale v. Keene, 76 Mont. 403, 409, 247 P. 554, 556, it was stated:
“* * * if a deed, fully executed and so drawn as to convey a present title, is deposited by the grantor with a third person with directions to deliver it to the grantee after the death of the grantor, and the grantor in making such deposit reserves no power to recall or modify the same, or thereafter to control in any manner the disposition of the deed, the delivery will be deemed complete as of the date the deed is deposited. [Cases cited.]”
The judgment of the trial court is reversed and the cause remanded for further proceedings consistent with this opinion.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES HASWELL, CASTLES and JOHN C. HARRISON concnr.
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DECISION
The application of the above-named defandant for a review of the sentence of 25 years, imposed on January 20, 1969, was fully heard and after a careful consideration of the entire matter it is decided that:
(1) The sentence be and remain as originally imposed by the sentencing court.
The reason for the above decision is that the defendant was convicted of crime against nature punishable by imprisonment for not less than 5 years with no limit, yet received this sentence of but 25 years with eligibility for parole consideration in October, 1973, after being received January 24, 1969, although he has a record of four prior felony convictions. Since the presumption is that the sentencing judge was correct in his determination (State v. Brecht and State v. Barton both decided this day) we are unable to say from anything presented in this, case that the sentence imposed was not proper, reasonable, and sufficiently lenient, the crime and sentencing goals kept in mind, together with the defendant’s prior record.
We thank Daniel L. Rothlisberger, Esq., of the University Defenders for his assistance to the defendant.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
|
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JUSTICE ERDMANN
delivered the Opinion of the Court.
This is an appeal from a decision of the Eighth Judicial District Court, Cascade County, in its award of child support and maintenance in favor of Mayla Stufft and its division of the marital estate. We affirm in part, reverse in part, and remand for further findings consistent with this opinion.
We restate the issues as follows:
1. Did the District Court err in adopting the proposed findings of fact and conclusions of law of one party practically verbatim?
2. Did the District Court err in its award of child support?
3. Did the District Court err in its distribution of the marital estate?
4. Did the District Court err in awarding maintenance to Mayla?
FACTS
David and Mayla Stufft were married in 1971. Three children were bom of the marriage and at the time of the appeal they were 21, 15, and 13 years of age. In 1977 David graduated from law school and the family moved to Cut Bank. David has a law practice and up until the time of the divorce worked as a part-time manager on his family-farm (Stufft Farm). Mayla worked as a teacher in the Cut Bank school system from 1978 to 1993 except for six years when she took time off to be with the children.
Mayla and the two minor children moved to Fresno, California, in August 1993. She is seeking employment in the Fresno school system. David remains in Cut Bank. David and Mayla agreed to share custody of the minor children with Mayla having primary physical custody and David having reasonable rights of visitation.
The District Court valued the assets and distributed them in such a manner that both parties received approximately $185,000 with Mayla receiving the family home. David was assigned a large portion of the debt, although the $70,000 mortgage was ordered to be paid from the sale of the family home. The court awarded $739 per month per child as child support for the two minor children. The court also awarded $2,000 per month as maintenance to Mayla for a period of two years or until she becomes employed by the school system, whichever occurs first. From the court’s value and division of marital property and its award of child support and maintenance, David appeals.
ISSUE 1
Did the District Court err in adopting the proposed findings of fact and conclusions of law of one party practically verbatim?
David contends that it was inappropriate for the court to have adopted Mayla’s proposed findings and conclusions verbatim. We have held that adoption of a party’s proposed findings and conclusions is not in itself grounds for reversal. In re Marriage of Purdy (1988), 234 Mont. 502, 764 P.2d 857.
[I]t is not error for a court to adopt a party’s proposed findings and conclusions if they are sufficiently comprehensive and pertinent to the issues to provide a basis for the decision and are supported by the evidence.
Purdy, 764 P.2d at 858 (citing In re Marriage of Jacobson (1987), 228 Mont. 458, 743 P.2d 1025).
Proposed findings of fact and conclusions of law adopted by the district court are the court’s own findings and conclusions and shall be reviewed the same — for clear error of fact and correctness of law. See Daines v. Knight (1995), 269 Mont. 320, 324, 888 P.2d 904, 906; and Kreger v. Francis (1995), 271 Mont. 444, 447, 898 P.2d 672, 674. In this case, the court’s findings and conclusions were sufficiently comprehensive and pertinent to the issues and we will not reverse the court’s decision on that basis so long as the evidence and the law supports those findings and conclusions.
ISSUE 2
Did the District Court err in its award of child support?
The District Court ordered David to pay Mayla the sum of $739 per month per child for the care, support, and maintenance of the parties’ minor children. We review a district court’s award of child support to determine whether the district court abused its discretion. In re Marriage of Craib (1994), 266 Mont. 483, 490, 880 P.2d 1379, 1384. We have said, “a district court must apply its discretion in a realistic manner, taking into account the actual situation of the parties.” In re Marriage of Noel (1994), 265 Mont. 249, 252, 875 P.2d 358, 359.
In calculating child support payments, § 40-4-204(3)(a), MCA, provides that:
Whenever a court issues or modifies an order concerning child support, the court shall determine the child support obligation by applying the standards in this section and the uniform child support guidelines .... The guidelines must be used in all cases .... The amount determined under the guidelines is presumed to be an adequate and reasonable support award, unless the court finds by clear and convincing evidence that the application of the standards and guidelines is unjust to the child or to any of the parties or is inappropriate in that particular case.
Both parties submitted financial affidavits purporting their incomes, assets, and expenses. David also submitted a child support determination worksheet by which he calculated what he considered to be appropriate child support figures. According to his calculations, David’s support obligation was a negative amount (-$276 per child) while Mayla was obligated to contribute $221 per child. Mayla did not submit a child support determination worksheet but asserts that in utilizing the child support guidelines David is obligated to pay support in the amount of $739 per child.
In the District Court’s findings and conclusions, it stated that it considered and complied with the Social and Rehabilitative Services Guidelines in arriving at its child support award of $739 per child per month. A district court, however, is required to make specific findings in writing as to how it calculated its award of child support under the guidelines and any deviation therefrom. In re Marriage of Brandon (1995), 271 Mont. 149, 152, 894 P.2d 951, 953. In this instance, the court did not identify the specifics of its calculation but merely alluded to the use of the guidelines. In fact, the record is unclear as to how the District Court either complied with or deviated from the child support guidelines.
Working backwards on the child support determination worksheet, David argues he would have to earn $126,000 per year to be obligated for support payments of $739 per child per month. In any event, there is insufficient evidence to support the court’s award of child support given that the court has provided no means to evaluate and compare its calculations with those required under the guidelines. We therefore conclude the District Court abused its discretion in its award of child support and we remand this issue to the District Court for its calculation of child support pursuant to the Montana Child Support Guidelines.
ISSUE 3
Did the District Court err in its distribution of the marital estate?
We review the findings underlying a district court’s division of marital property to determine if the findings are clearly erroneous. In re Marriage of Rock (1993), 257 Mont. 476, 479-80, 850 P.2d 296, 298. We determine a finding is clearly erroneous by using the three-part test set forth in Interstate Production Credit Association v. DeSaye (1991), 250 Mont. 320, 323, 820 P.2d 1285, 1287. TheDeSaye test requires a review of the record to determine whether the findings are supported by substantial evidence; to determine whether the district court misapprehended the evidence; and finally, to determine whether a review of the record leaves this Court with a firm conviction that a mistake has been made. The court’s distribution of marital property is a discretionary judgment which is “presumed to be correct and will not be disturbed on appeal absent an abuse of discretion.” Marriage of Rock, 850 P.2d at 298.
Section 40-4-202(1), MCA, provides in part that:
[T]he court ... shall ... finally equitably apportion between the parties the property and assets belonging to either or both .... The court shall also consider the contribution or dissipation of value of the respective estates and the contribution of a spouse as a homemaker or to the family emit.
The District Court distributed $184,000 in assets to David and $185,000 in assets to Mayla. As part of this distribution, David received the assets of the Stufft Law Firm which the court valued at $75,000, and 20 shares of Stufft Farm stock valued at $20,000. Mayla received the family home with a value of $128,200. The court assigned $5,467 in debt to Mayla and $182,000 in debt to David.
David contends that the assets he received were overvalued and as a result the court’s distribution was inequitable. David claims the market value of his law firm was actually $6,500, the value of the equipment given the fact that accounts receivable equaled accounts payable. Mayla asserts that the law business had value, not only by virtue of the purchase price, but also from the testimony of Mayla’s expert witness relative to the good will of the law firm and its average annual reported revenue. However, the purchase price to which Mayla refers is the amount David and a former partner, Moore, borrowed to purchase a third partner’s (Frisbee) interest in the law firm of Frisbee and Moore. In 1991 David left that practice and received $12,000 in cash for the equity in the building, some of the equipment, and the law library. Both he and Moore retained their individual accounts.
As a result of this sequence of events, the price paid for Frisbee’s interest does not necessarily represent the market value of the Stufft Law Firm. Neither is there evidence to support the court’s finding that David’s average net taxable income from the law business is $35,000. Mayla’s own exhibits provide that David’s net law income for the last three, five, and seven years averaged less than $35,000. Thus, while the value of the law firm may be over and above the value of its office equipment, there is no evidence in the record to support the $75,000 assessment by the court. We therefore conclude that the court erred in valuing the Stufft Law Firm and we remand this issue to the District Court for further findings in support of a determined market value for the Stufft Law Firm.
As for the Stufft Farm stock, David claims the value of the stock is actually $64 per share and the value of his total shares is $1,280. Mayla concedes that the value of the Stufft Farm stock is in question. Accordingly, we remand this issue back to the District Court for further findings to support a valuation of the Stufft Farm stock.
Finally, David contends that the court’s assignment of debt was inequitable. David maintains that the court unfairly distributed the house to Mayla while assigning the mortgage on the house to him. The court, however, ordered that David “continue paying the debt on the family home until such time as it is sold. The remaining original debt for the home shall be paid out of the sale of the home at the time of closing.” Assuming the house is up for sale in light of the fact that Mayla has moved from Montana, the court’s distribution to Mayla was actually the value of the home minus the first mortgage and David was not unduly burdened with that debt.
Nevertheless, David contends he was still assigned a majority of the debt and the District Court’s assignment remains inequitable. “As with the division of property, the District Court is given wide discretion in the division of debts.” In re Marriage of Staudt (1985), 216 Mont. 196, 201, 700 P.2d 175, 178. We have reviewed the court’s assignment of debt and note that the debt assigned to David is either personal to him or to his business. David took out a second mortgage on the family home and incurred further debt to purchase a practice and office building from which he alleges he received $12,000 that he then invested in his current practice. David’s current practice, Stufft Law Firm, is an asset of David and we have said that the debts of a business are the responsibility of whomever has the interest in that business. See In re Marriage of Childers (1985), 216 Mont. 125, 127, 700 P.2d 594, 595. Accordingly, there is sufficient evidence to support the court’s distribution of debt and that evidence has not been misapprehended nor do we have any conviction that a mistake has been made. We therefore conclude the District Court did not abuse its discretion in assigning the majority of the debt to David. However, we direct the District Court to reconsider its equitable distribution of the assets and debts of the marital estate given that we have remanded to the court its determination of value for the Stufft Law Firm and the Stufft Farm stock.
ISSUE 4
Did the District Court err in awarding maintenance to Mayla?
The District Court ordered David to pay maintenance of $2,000 per month to Mayla “for twenty-four months or until she becomes employed by the school system whichever occurs first.” We review a district court’s award of maintenance to determine if the findings of fact are clearly erroneous. In re Marriage of Eschenbacher (1992), 253 Mont. 139, 142, 831 P.2d 1353, 1355. As stated in Issue 3, we use the three-part test set forth in DeSaye, 820 P.2d at 1287, to determine if the court’s findings are clearly erroneous.
Maintenance is provided for in § 40-4-203, MCA, whereby the court may grant a maintenance order for either spouse only if it finds that the spouse seeking maintenance:
(a) lacks sufficient property to provide for his reasonable needs; and
(b) is unable to support himself through appropriate employment ....
(2) The maintenance order shall be in such amounts and for such periods of time as the court deems just, without regard to marital misconduct, and after considering all relevant facts including:
(a) the financial resources of the party seeking maintenance, including marital property apportioned to him, and his ability to meet his needs independently, including the extent to which a provision for support of a child living with the party includes a sum for that party as custodian;
....
(f) the ability of the spouse from whom maintenance is sought to meet his needs while meeting those ofthe spouse seeking maintenance.
David claims his monthly expenses exceed his monthly revenue and therefore he is not capable of paying $2,000 per month in maintenance. Mayla disputes David’s purported income and debt while the court concluded that he received $50,000 as farm manager and $35,000 in his law practice. As stated in Issue 3, there is no evidence to support the court’s finding of income relating to David’s legal practice and as a result the value of David’s law practice is in question. Furthermore, David claims that he resigned from his position as farm manager, thus depleting his past income. If a past employment position remains available, we have said that a court may impute that income to a party in a divorce proceeding. In re Marriage of Chiovaro (1991), 247 Mont. 185, 189, 805 P.2d 575, 577. Nonetheless, there is no evidence in the record as to whether the farm manager position was available to David at the time of the dissolution.
While Mayla presented evidence of need until such time as she becomes employed, the court’s award of maintenance is not consistent with evidence of David’s financial resources. In addition, the court’s award for child support which has been remanded should be considered in an award of maintenance. Section 40-4-203(2)(a), MCA. We therefore remand the issue of maintenance to the District Court for reconsideration with regard to its findings for child support and David’s available income.
We affirm in part, reverse in part, and remand to the District Court for further findings consistent with this opinion.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT and TRIEWEILER, and DISTRICT COURT JUDGE MIZNER sitting for JUSTICE GRAY, DISTRICT COURT JUDGE WHELAN sitting for JUSTICE LEAPHART and DISTRICT COURT JUDGE SHERLOCK sitting for JUSTICE NELSON concur.
|
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MR. JUSTICE HASWELL,
delivered the Opinion of the Court.
This is an appeal by plaintiffs from an order of the district court of Cascade County granting a summary judgment to defendants. The suit in question generally seeks the release of execution levies an accounting of the property levied against, and delivery of such property from the defendants to one of the plaintiffs together with exemplary damages against one defendant for wrongful seizure thereof.
There are two plaintiffs in this action, Manufacturers Acceptance Corporation (hereafter called MAC) and Engineered Building Specialties, Incorporated (hereafter called EBS). EBS is a Washington corporation whose principal business is the design and installation of architectural curtain walls. MAC is a Washington corporation whose business is discount purchasing of accounts receivable of business enterprises. There are two defendants in this action: John S. Krsul, the Sheriff of Cascade County, who is sued in his official capacity only (hereafter called Krsul) and Sletten Construction Company, a Montana corporation engaged in building construction (hereafter called Sletten). Also mentioned hereafter although not a party to this action is Purvis Construction Company, the prime contractor on the construction of the Montana Deaconess Hospital in Great Falls (hereafter called Purvis), who appeared as amicus curiae herein.
On May 15, 1962, EBS and MAC entered into a contract entitled “Factoring Agreement.” The substance of this agreement provided for the purchase by MAC at a discount such accounts receivable of EBS as were acceptable to MAC; upon purchase of any given account receivable, title to the same was to be transferred contemporaneously by bill of sale whereupon MAC would become sole owner thereof. On September 20, 1962, EBS signed its first subcontract with Sletten, the prime contractor, involving curtain wall work to be done by EBS on the Sacajawea School in Great Falls. At the time of signing this subcontract EBS was not qualified to do business in Montana but completed such qualification on November 23, 1962. The following day EBS signed its second subcontract with Sletten involving certain window work to be done by EBS on the First National Bank building in Missoula. On March 6, 1963, EBS signed a subcontract with Purvis whereby EBS was to perform certain work on the Montana Deaconess Hospital in Great Falls.
From approximately November 23, 1962, until about January 28, 1964, EBS was engaged in business in Montana on various projects including, among other things, performance of the subcontract with Sletten on the Sacajawea School and the subcontract with Purvis on the Montana Deaconess Hospital. During the period of time that EBS was engaged in business in Montana, it failed to file any corporation license tax returns and did not pay its corporation license taxes.
During the period of time that EBS was doing business in Montana, it performed its subcontract with Sletten on the Sacajawea School and received payment therefor except the sum of $4,334.37. On December 12 and 23, 1963, EBS sold this unpaid balance of its account receivable against Sletten to MAC pursuant to the so-called “Factoring Agreement.” Also during the year 1963, and in the month of January 1964, from time to time as they accrued and became payable, EBS sold its accounts receivable against Purvis under the Montana Deaconess subcontract to MAC.
In January 1964, EBS either withdrew or defaulted on its subcontract with Sletten on the First National Bank building in Missoula and Sletten, the prime contractor took over the subcontract. About April 1, 1964, Sletten secured a default judgment against EBS in the sum of $7,347.44 in the district court of Cascade County and caused execution to be levied by Ersul against the following: (1) Cash in the amount of $4,334.37 held by Sletten, being the balance owed by Sletten to EBS on the Saeajawea School subcontract; (2) an unliquidated credit claimed to be in the possession of and owing by Purvis on the Montana Deaconess Hospital subcontract with EBS; and (3) an unliquidated claim for rental of machine tools in the possession of Purvis for usage of such tools during construction of the Montana Deaconess Hospital.
• Thereafer on January 8, 1965, EBS was suspended from doing business in Montana by the Secretary of State by reason of its failure to file corporation license tax returns and pay its corporation license taxes.
. The instant suit was commenced by the filing of a complaint by MAC only on January 20, 1966, wherein MAC claimed to be the owner of and entitled to possession of the three items levied against by Sletten as set forth above and asked for the following relief: (1) release of the levies of execution by Sletten on this property; (2) an accounting thereof and delivery of the same to MAC; and (3) exemplary damages against Sletten for wrongful seizure thereof under execution. On May 2, 1966, an amended complaint was filed naming EBS as an additional party plaintiff. On May 19, 1966, Ersul and Sletten answered contending, among other things, that the claims of MAC were barred and unenforceable by reason of violation by EBS of various statutes relating to foreign corporations doing business in Montana. On August 17, 1966, MAC and EBS filed their reply alleging, among other things, that proceedings were under way to cure these violations. On September 20,- 1966, the corporation license tax defaults of EBS were remedied and the Secretary of State, after clearance by the State Board of Equalization, issued a certificate of reviver of the right of EBS to do business in Montana.
Following various interrogatories, answers, and admissions of the parties, defendants Krsul and Sletten moved for a summary judgment under Rule 56, M.R.Civ.P. on the ground that the claims of plaintiffs MAC and EBS were barred by the provisions of sections 15-1701, 15-1703, and 84-1514, R.C.M. 1947, (all relating to requirements, prohibitions, disabilities, and qualifications of foreign corporations doing business in Montana). The motion for summary judgment was granted and this appeal followed.
The foregoing statement constitutes the basic facts material to determination of this appeal. The ultimate issues presented for review upon this appeal are: (1) Is there any genuine issue of fact material to determination of the right of defendants to judgment?; and (2) Are the claims of MAC barred as a matter of substantive law?
Underlying the determination of these ultimate issues are the following considerations: (1) Are disputed facts relating to the existence or non-existence of notice and consent by Sletten to the transfer of ownership of the Sacajawea and Deaconess accounts from EBS to MAC material to the determination of the right of defendants to judgment?; (2) The effect of EBS signing the Sacajawea subcontract with Sletten prior to its qualification to do business in Montana; (3) The effect of EBS failing to file its corporation license tax returns and pay its corporation license taxes when due (4) What disabilities, if any, of EBS against Sletten on the Sacajawea and Deaconess subcontracts are chargeable against MAC in this action? and (5) The effect of subsequent filing of corporation license tax returns and payment of delinquent corporation license- taxes on behalf of EBS resulting in reviver of the right of EBS to do business in Montana?
Regarding the existence of a genuine issue of material fact, plaintiffs contend that the record discloses such issue of fact relating to notice to Sletten of the assignment of the accounts in question from BBS to MAC, Sletten’s consent to such assignment, and the course of dealing between EBS, MAC, and Sletten giving rise to an estoppel against Sletten to assert any defense based on lack of notice or consent. These factual issues, they contend, must be resolved before the legal rights of MAC and Sletten and the priority of their respective claims to the property levied upon can be determined. We disagree. At the outset it must be noted that these claimed factual issues are not germane to the account and claims arising out of the Deaconess subcontract with Purvis; they relate only to the balance of $4,334.37 on the subcontract between EBS and Sletten on the Sacajawea School. Assuming without deciding that Sletten had notice, of the interest of MAC in the payments owing, or to become owing EBS under the Sacajawea subcontract, and consented thereto prior to or contemporaneously with the assignment of the account from EBS to MAC, as contended by plaintiffs, determination of defendant’s right to judgment remains unaffected. In our view, defendant’s rights herein are not bottomed upon or related in any way to notice, consent or estoppel as will be developed hereafter. We hold, therefore, that there is no genuine issue of fact material to determination of the right of defendants to judgment herein.
Passing on to the second underlying issue that is posed herein, viz: the effect of EBS signing the subcontract with Sletten for work on the Sacajawea School prior to its qualification to do business in Montana. Defendants argue that EBS is precluded from recovery of the $4,334.37 balance owed by Sletten because the Sacajawea subcontract is void and unenforceable under the provisions of section 15-1703, R.C.M. 1947. This statute reads, in its pertinent parts, as follows: “Contracts void if made before compliance with act. If any foreign corporation shall attempt or commence to do business in this state without having first [qualified to do business in Montana] * * ® no contract made by sncli corporation, * * * during said time, shall be enforceable by the corporation until the foregoing provisions have been complied with.”
The difficulty in construing the statute in this respect is caused by the language used in the heading to the Act stating that contracts made before compliance are “void” and the body of the Act providing that such contracts are unenforceable by the corporation until compliance. The title to the statute is subordinate to the text in construing the statute (Eastman v. School Dist., No. 1., 120 Mont. 63, 180 P.2d 472; State ex rel. Jones v. Erickson, 75 Mont. 429, 244 P. 287), and the title of the section of the Code may not be resorted to in order to create an ambiguity. (State ex rel. Palagi v. Regan, 113 Mont. 343, 126 P.2d 818). Applying these rules of statutory construction there is no ambiguity, the body of the statute clearly providing that no contract made by a foreign corporation is enforceable during the time it was required to comply and did not comply and until it does comply, any expressions to the contrary in Hutterian Brethren of Wolf Creek v. Haas, D. C., 116 F.Supp. 37, notwithstanding.
The third underlying issue presented for review concerns the effect of the failure of EBS to file corporation license tax returns and to pay its corporation license taxes when due. It is conceded that the corporation license tax return of EBS and payment of corporation license taxes was due on July 15, 1963. Upon failure to file the return and pay the corporation license taxes when due, the return and payment became delinquent. The disabilities that attached at this point were the disabilities contained in section 15-1703, namely, nonenforceability of contracts of the corporation. The part of that statute pertinent at this point reads as follows: “If any foreign corporation shall attempt or commence to do business in this state * * * without complying with any or all of the laws of Montana relating to the payment of fees or licenses, no contract made by such corporation, * '* * during said time, shall bo enforceable by the corporation until the foregoing provisions have been complied with.”
We recognize at the outset that this statute is capable of two interpretations: (1) that only contracts made during the period of delinquency are non-enforceable, or (2) that any contracts of the corporation whenever made are nonenforceable during the period of delinquency. The purpose of the statute being to secure compliance by foreign corporations with Montana laws relating to payment of fees and licenses and to provide a penalty for noncompliance in the form of nonenforceability of its contracts, we must construe the statute in the light of such purpose. Therefore we hold that the statute means that any contract of a foreign corporation is not enforceable during the period of delinquency in payment of its fees and licenses. To hold otherwise would provide a ready-made loop hole for non-payment of Montana licenses and taxes by foreign corporations by permitting such corporations to come into the state, execute contracts before any licenses and taxes became due and payable, refuse or fail to pay such licenses and taxes, and still enforce their previously executed contracts in the courts of this state.
But are corporation license taxes “fees and licenses” within the meaning of section 15-1703, R.C.M.1947? Plaintiffs argue that they are not because the statute that later became section 15-1703 pre-dated any Montana corporation license tax law. Therefore, they argue, our Legislators in enacting the forerunner of section 15-1703, could not have intended the terms “fees and licenses” to refer to corporation license taxes not then in existence. This argument is specious. In our view the intent of the Legislature was to require payment of all licenses and taxes imposed by law whether theretofore or thereafter enacted to subserve the general purpose of the statute in requiring compliance with our tax laws by foreign corporations doing business in this state.
Additionally, the provisions of section 15-1701, snbd. 4, provide that any foreign corporation “refusing to comply with any and all the laws of Montana relating to the payment of fees or licenses” shall be subject to “all the penalties, liabilities, and restrictions imposed by law” upon foreign corporations for doing business in Montana without qualifying. One of these “penalties, liabilities, and restrictions” so imposed is nonenforecability of their contracts under section 15-1703, supra.
For the foregoing reasons we hold that the effect of nonpayment of corporation license taxes by EBS when due rendered all EBS contracts nonenforceable during the period of such delinquency. The effect of subsequent payment of these taxes and reviver of the right of EBS to do business will be discussed later in this opinion.
The fourth underlying issue presented for review is what disabilities, if any, of EBS against Sletten are chargeable against MAC in the instant case. The disability with which we are concerned here is the disability that attached on July 15, 1963, when the corporation license taxes of EBS became delinquent, viz.: the nonenforceability of contracts of EBS during the period of delinquency. It must be borne in mind that this delinquency continued until August or September 1966. In the intervening time the accounts receivable of EBS against Sletten on the Sacajawea subcontract and against Purvis on the Deaconess subcontract were sold to MAC during the months of November and December 1963, and January 1964; EBS discontinued doing business in Montana in January 1964; Sletten secured his judgment against EBS and levied execution thereon in April 1964; in January 1965 EBS was suspended from doing business in Montana, and the instant suit was filed in January 1966 with the defenses thereto filed in May 1966.
Thus, EBS was disabled from enforcing its subcontracts on the Sacajawea School and the Montana Deaconess Hospital at the time they sold the accounts receivable under these subcontracts to MAC. This disability had accrued and attached to these subcontracts and accounts while they were owned by EBS. EBS could transfer no greater interest in them to MAC than EBS itself possessed. Thus, EBS could transfer no enforceable right in them to MAC because EBS itself possessed no enforceable right. It is basic that an assignee purchase a nonnegotiable instrument (such as the account receivable here) subject to defenses existing against the assignor at the time of the assignment. (Apple v. Edwards, 92 Mont. 524, 16 P.2d 700, 87 A.L.R. 179). As Sletten had the defense of nonenforceability against EBS, the assignor, at the time of the assignment such defenses remained available to Sletten against MAC, the assignee, both as to the Sacajawea and Deaconess transfers. Both claims were simply nonenforceable during the delinquency in the hands of either EBS or MAC.
The argument is advanced by plaintiffs that EBS was not disabled from enforcing the Sacajawea and Deaconess accounts at any time because subsequent disqualification does not bar enforcement of duly executed contracts where only payment remains. Suffice it to say that the authorities cited in support of this proposition were not construing statutes such as ours but were construing statutes that dealt with disqualification to do business rather than enforceability of contracts. Our statute, section 15-1703, supra, contains no such limitation, and as we have construed its purpose, would provide an easy means of evasion of that purpose if such limitation were read into it.
¥e hold therefore, that at the time of the assignment of the accounts in question EBS had no right of enforcement thereof, which disability was transferred to the assignee, MAC, and which disability continued past the completion of all pleadings in the instant suit. Thus, the defense of nonenforceability raised by defendants herein constitutes a valid defense entitling defendants to judgment as a matter of law unless the subsequent payment of delinquent taxes on behalf of EBS and reviver of its right to do business in this state alters the picture.
This brings us to the final underlying issue for review, namely, the effect of subsequent payment of corporation license taxes and reviver of the right of EBS to do business in Montana. "We have heretofore construed section 15-1703 as rendering nonenforceable during the period of delinquency the contracts of a foreign corporation that does not pay its corporation license taxes when due. After the delinquency is cured, the bar of nonenforceability is removed as we construe the statute. But what of the rights of Sletten that vested and accrued during the period of delinquency? Here, Sletten’s right to the property in question vested and accrued under the execution levies, and this right was superior to any right of MAC thereto because of nonenforceability of the contracts on which the accounts were based. To permit MAC now to divest this superior, accrued right of Sletten to the property levied upon, which pre-dated payment of the delinquent corporation license taxes of EBS by more than two years is to indulge in legal gymnastics of a higher order than the writer of this opinion possesses. Under the circumstances disclosed here, we hold the subsequent compliance by payment of delinquent corporation license taxes removes the bar of nonenforceability of the contracts in question under section 15-1703, as of the date of payment of such delinquent taxes, but that removal of the bar of nonenforceability does not relate back to the date of the original delinquency so as to bar superior rights of others that accrued during the period of delinquency.
Defendants contend that section 84-1515 precludes any effect or reviver on defenses that had accrued prior thereto. This statute provides, in part, as follows: “The reviver shall, be without prejudice to any action, defense or right which has accrued by reason of the original suspension or forfeiture.”' We do not consider this argument germane under our analysis because it is predicated on the right of the corporation to do business rather than upon the nonenforceability of the contract.
We hold, therefore, that defendants were entitled to judgment as a matter of law and that Judge Bradford was correct in granting them summary judgment on the record herein.
We have examined the other issues and arguments raised by plaintiffs, defendants, and amicus curiae but consider that none would vary the result and rulings herein announced.
The order granting summary judgment to the defendants is .affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and Mr. •JUSTICES ADAIR, CASTLES and JOHN CONWAY HARRISON, concur.
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
David F. Stufft appeals an order of the Ninth Judicial District Court, Glacier County, which dismissed this action under Rule 12(b)(6), M.R.Civ.P. We affirm.
The dispositive issue is whether, under the facts as alleged in the complaint, Stufft’s preemptive right to purchase Stufft Farms, Inc., stock was violated.
Stufft Farms, Inc., is a Montana corporation whose primary asset is real property located in Glacier County, Montana. The corporation is owned by Esther M. Stufft (17,077 shares), Carmen C. Stufft (17,018 shares), Carol Stufft Larson (20 shares), Dorene Stufft Badgett (20 shares), and David F. Stufft (20 shares). At a December 27, 1994 meeting, the Directors of Stufft Farms, Inc., adopted a resolution to dissolve and liquidate the corporation.
A prospective purchaser, Neil E. Johnson, was located. It was determined that, due to tax considerations, the shareholders would receive a better price for their interests in the corporation through sale of the capital stock rather than sale of corporate assets.
On February 24, 1995, Johnson offered to purchase the capital stock of Stufft Farms, Inc., contingent upon all shares being available to him. All shareholders except plaintiff David F. Stufft agreed to accept the offer.
Thereafter, on March 9, 1995, Stufft attempted to purchase all of the other stockholders’ shares of stock, invoking Article XII of the corporate bylaws. Article XII, entitled Restrictions on Transfer of Shares, reads in relevant part:
No shareholder shall have the right or power to pledge, sell or otherwise dispose of, except by will, any share or shares of this company, without first offering the said share or shares for sale to the company and shareholders at the then book value, in the manner hereinafter set forth.
Stufft argued that the other shareholders’ offer to sell their stock to Johnson triggered this provision, giving him a preemptive right of first refusal to purchase the stock at book value.
The remaining shareholders refused to honor Stufft’s demand to sell their shares to him at book value. They instead responded by a letter offer to sell their stock to Stufft for the amount which had been offered by Johnson. When Stufft did not accept that offer, they elected to retain their shares of stock and pursue the sale of corporate assets and liquidation as set forth in the corporate resolution of December 27, 1994. Corporate officers negotiated with Johnson a custom farming agreement, farm lease, and option to purchase real and personal property, which were approved by the Board of Directors on March 27, 1995.
Thereafter, Stufft filed this action. He alleged that he had become the equitable owner of all stock in Stufft Farms, Inc., because of the above events. He argued, therefore, that he alone was entitled to vote all shares of stock and that the agreements with Johnson should be considered void.
All defendants moved to dismiss the complaint for failure to state a cause of action pursuant to Rule 12(b)(6), M.R.Civ.R The District Court granted that motion.
Under the facts as alleged in the complaint, was Stufft’s preemptive right to purchase Stufft Farms, Inc., stock violated?
The District Court dismissed this action under Rule 12(b)(6), M.R.Civ.P., for failure to state a claim upon which relief can be granted. A motion to dismiss under Rule 12(b)(6) has the effect of admitting all the well-pled allegations of the complaint. Mogan v. City of Harlem (1987), 227 Mont. 435, 437, 739 P.2d 491, 493. A complaint should not be dismissed for insufficiency unless it appears certain that the plaintiff is entitled to no relief under any set of facts which could be proved in support of the claim. Mogan, 739 P.2d at 492-93. This Court will look only within the four corners of the complaint in making its decision on review of a Rule 12(b)(6) dismissal. Irving v. School District No. 1-1A (1991), 248 Mont. 460, 464, 813 P.2d 417, 419.
Stufft points out that share transfer restrictions are valid and enforceable. Gray v. Harris Land and Cattle Co. (1987), 227 Mont. 51, 737 P.2d 475. He argues that his preemptive right was triggered by the other stockholders’ acceptance of Johnson’s February 24,1995 offer to purchase all of the corporation’s outstanding stock, and again by the March 10, 1995 offer of the majority stockholders to sell their stock to him at the price at which the stock had been offered to Johnson, a price not shown or claimed to be book value. He maintains that preemptive rights are triggered by a willingness, a desire, or an attempt by stockholders to dispose of their stock, citing Weintz v. Bumgarner (1967), 150 Mont. 306, 434 P.2d 712.
A critical distinction between Weintz and the present case is that in Weintz, not only was there a willingness to sell on the part of the property owners, but actual agreements were reached to sell the various interests in the subject property. In the present case, no agreements were reached to sell the stock at issue.
The complaint sets forth Stufft’s information and belief that Johnson’s offer to purchase the stock in Stufft Farms, Inc., was an offer to purchase all of the stock in the corporation. Johnson’s offer was not accepted by shareholder Stufft. Because of the contingent nature of Johnson’s offer, when Stufft elected not to sell, Johnson’s offer to buy was withdrawn. Therefore, no agreement was reached. The corporation did not accept Johnson’s offer.
Similarly, under the facts pled in the complaint, the other shareholders’ March 10 offer to sell stock to Stufft on the same terms as those offered by Johnson was a counteroffer to Stufft’s March 9 offer to purchase the stock at book value. Stufft’s offer was not accepted. The counteroffer was not accepted.
Stufft’s preemptive right to purchase Stufft Farms, Inc., stock was not triggered under the facts pled in the complaint, because the other shareholders did not “pledge, sell or otherwise dispose of’ their shares of stock. Under the facts as pled in the complaint, the other stockholders still own their stock in the corporation. The District Court therefore cannot be said to have erroneously annulled Article XII under equity, as Stufft contends. Nor is Stufft entitled, as he maintains, to bring an action for damages measured by the difference between the book value and the market value of the stock owned by the other stockholders.
Stufft also contends that the other shareholders and Johnson are attempting to circumvent his preemptive rights. The District Court noted:
The Court is very aware of the purpose of corporate restrictive stock transfer bylaws and in particular those of a closely held family corporation. The purpose of such restrictions is to facilitate keeping the corporation closely held and to restrict the transfer of stock beyond family members. Such restrictive agreements and bylaws are specifically allowed under Montana Law pursuant to Section 35-1-628, M.C.A. However, neither the state statute nor the restrictive agreements were intended to prohibit liquidation of a corporation and the sale of its assets. See Section 35-1-822 through Section 35-1-839, M.C.A.
....
The issue before the Court is whether a minority shareholder may rely on a restrictive transfer article of the bylaws to essentially prohibit the liquidation and sale of the corporate assets. It is undisputed that the desire of the Board of Directors and controlling shareholders was originally to dissolve and liquidate the assets of the corporation. That was the substance of the Corporate Resolution passed on December 27, 1994. ... [I]t seems only reasonable that restrictive transfer bylaws never were designed to prohibit the liquidation and sale of the corporate assets as clearly allowed under state statutes.
We agree.
The District Court found persuasive Dobry v. Dobry (Okl. 1953), 262 P.2d 691. That case, like this one, involved a closely held family corporation in which a majority of the stockholders authorized a sale of the corporation’s assets. Plaintiff, a minority shareholder, cited his preemptive rights under corporate bylaws and filed an action to enjoin the sale of corporate assets.
Plaintiff’s position is that the sale of the corporation’s assets as decided upon at the special stockholder’s meeting, above described, would cause an equitable conversion and sale of his stock, thereby arbitrarily converting it into money and preventing him from selling his stock or purchasing defendants’ stock under the terms and provisions of the above-quoted article. ...
....
We think it is plain from the wording of Article X that its provisions do not contemplate nor apply to a sale of the entire corporation or its assets, and that, by its own terms, it is confined to the exchange of stock between stockholders. ... As it is thus our view that Article X does not apply to a sale of the corporation’s assets, it follows that said article affords plaintiff no basis for an injunction against said sale.
Dobry, 262 P.2d at 692-93. The same can be said in the present case. The wording of Article XII does not suggest that it applies to an intended sale of the entire corporation or its assets.
The District Court wrote:
[I]t is this Court’s holding, based on the facts pled in Plaintiff’s Complaint, that the shareholders did not intend to sell their individual shares except if all shareholders agreed pursuant to the offer made to them on February 24, 1995. The fact that those shares were offered with strings attached which could not be removed, negated any intent on their part to be bound by Article XII of the corporate bylaws. To find otherwise would exalt form over substance in particular when it is clear to the Court that the Board of Directors had previously voted to dissolve the corporation and liquidate its assets.
We affirm the holding of the District Court. Under the facts as pled in the complaint, we conclude that Stufft’s preemptive right to purchase Stufft Farms, Inc., stock was not violated.
In its order dismissing this action, the District Court also granted the Rule 12(b)(b), M.R.Civ.P., motion of defendant Johnson to be dismissed on grounds of failure to state a legal theory upon which relief could be granted against him. Stufft argues on appeal that Johnson should not have been dismissed because he is a necessary and proper party to this action, which Stufft characterizes as an action to annul a contract to which Johnson is a party.
Stufft’s complaint presents this not as an action to annul the contract between Stufft Farms, Inc., and Johnson, but instead as an action to enforce a term of the bylaws of Stufft Farms, Inc. Johnson is not a party to the bylaws of Stufft Farms, Inc. Only if Stufft was successful in his claim as to Article XII of the bylaws would he have grounds on which to challenge the contract between Stufft Farms, Inc., and Johnson. At any rate, given our resolution of the dispositive issue discussed above, we conclude that the issue of whether Johnson was a necessary or permissible party defendant is moot, and that we need not address that issue further.
Affirmed.
JUSTICES GRAY, ERDMANN, HUNT and TRIEWEILER concur.
|
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On July 30, 1993, the Defendant was sentenced to thirty (30) years for Accountability to Aggravated Kidnapping. The defendant is designated a dangerous offender and shall be given credit for 113 days time served.
On September 24,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and represented herself. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall remain the same as originally imposed.
The reason for the decision is the sentence imposed by the District Court is presumed correct pursuant to Section 46-18-904(3), MCA. The Division finds that the reasons advanced for modification are insufficient to deem inadequate or excessive as required to overcome the presumption per Rule 17 of the Rules of the Sentence Review Division of the Montana Supreme Court.
DATED this 24th day of September, 1993.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. John Warner, Judges
|
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MR. CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Appellant, Lynne Callahan, appeals the findings of fact, conclusions of law, and order of the Honorable Arnold Olsen, Second Judicial District, Silver Bow County. Respondent moved for modification of child support and visitation rights and obligations of the dissolution decree of December 10, 1984. The District Court found that the amount of child support per month was too high; that although the father had not made any support payments, this was mitigated by extenuating circumstances; and that the mother was secreting the children from respondent. Judge Olsen entered his findings on November 6, 1987.
The following issues are brought on appeal;
1. Whether the District Court rulings on abandonment and ability to pay child support were within its subject matter jurisdiction.
2. Whether the District Court abused its discretion in modifying the child support agreement.
3. Whether the District Court erred in adopting respondent’s alleged mitigating circumstances for unpaid child support.
4. Whether the District- Court abused its discretion in finding that the mother secreted the children from respondent.
5. Whether the District Court erred in finding that the respondent owed no more than $9,300.00 in arrears for child support.
6. Whether the District Court abused its discretion in accepting the respondent’s findings of fact wholesale.
We reverse.
Appellant and respondent were divorced on December 10, 1984. In the dissolution decree it was agreed that the mother would have custody of the three children from the marriage and the father would receive visitation during holidays, weekends, and summers. Respondent was ordered to pay $100.00 per month per child in child support. Respondent failed to pay any support in the three years between the decree and the July 6, 1987, hearing. Respondent only visited the children twice shortly after the divorce proceedings. When he took the children back to appellant’s residence after the first visit in Stevensville, he allegedly swore at the appellant, threw the children’s luggage out of the car, and pointed a gun at the appellant.
Thereafter, the appellant did not tell the respondent her new address when she moved. She testified that she did not tell the respondent because she feared for her life and the lives of her children. She did, however, leave a forwarding address with the postal service and held a valid driver’s license with the most current address. Respondent claimed that he went to extensive means to find the appellant and the children but was unsuccessful for two years.
Appellant served respondent a petition for adoption of the children by Ed Wright, appellant’s new husband. Respondent moved for a post-dissolution hearing which would clarify his visitation rights, where he claimed mitigating circumstances for not paying child support, and requested that appellant be held in contempt of court for secreting the children from him. It is from the District Court’s findings in this action that appellant appeals.
The first issue in this case is whether the District Court had proper subject matter jurisdiction over the matters of abandonment and the father’s ability to pay child support. The post-dissolution hearing from which this case arises centered around the issues of unpaid child support and respondent’s visitation rights. Three years after the dissolution decree, this hearing was held shortly after the respondent was served with an adoption proceeding notice. Appellant’s husband, Ed Wright, is petitioning for the adoption of the Callahan children. Lynne Callahan and Wright claim that because respondent has not made payments and has not visited the children for over a year, he abandoned the children, pursuant to Section 40-8-lll(a)(iii), MCA, and Section 41-3-102(3)(d), MCA. Respondent moved to have child support payments modified, visitation rights clarified, and a finding against abandonment. In the order of November 6, 1987, Judge Olsen found that Ed Callahan had not abandoned his children and desired a continuous relationship with them.
The question of abandonment was outside the scope of the Second Judicial District’s subject matter jurisdiction. Pursuant to Rule 12(h)(3), M.R.Civ.P., “whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action.” It is clear in this case that the court holds jurisdiction over the issues which were included in the original dissolution decree. Those issues are: dissolution of the marriage, child support, property distribution, and visitation rights. This list does not include abandonment. The question of abandonment is one which is to be decided by the court which hears the adoption proceeding. In a case for modification of rights and obligations in a dissolution of marriage, lack of subject matter jurisdiction may be raised at any time and a court may not acquire the jurisdiction even with the consent of both parties. Corban v. Corban (1972), 161 Mont. 93, 504 P.2d 985; Marriage of Cox (Mont. 1987), [226 Mont. 176,] 736 P.2d 97, 44 St.Rep. 567.
Ability to pay, on the other hand, is an issue which is within the purview of the District Court’s jurisdiction. The ability of the father to pay is an important feature of child support. The lower court has subject matter jurisdiction over matters relating to support payments.
The second issue is whether the District Court abused its discretion in modifying the child support. Under Section 40-4-208(2) (b)(i), MCA, when a decree for modification contains provisions relating to support, modification may be made by the court only “upon a showing of changed circumstances so substantial and continuing as to make the terms unconscionable.” The burden of showing the necessary change for modification is on the movant, in this case, the respondent. State of Or. ex rel. Worden v. Drinkwalter (Mont. 1985), [216 Mont. 9,] 700 P.2d 150, 42 St.Rep. 599. Respondent has failed to do so here.
In the original dissolution decree of December 10, 1984, the District Court ruled that Edward Callahan was to pay $100.00 per month per child in support. It made this ruling knowing that respondent was a substitute teacher, had a limited salary, and that he had a spinal injury limiting some of the work that he could do. The District Court made modifications apparently without considering the fact that in the three years since the decree, respondent’s income and health have remained nearly the same. There have been no substantial changes which call for modification of the decree. Nor has respondent passed the burden of proof to show that a change is necessary. In fact, respondent has not shown anything to this Court which would cause us to affirm the modified decree. He has never made a support payment and he received $20,000.00 in settlement for his spinal injury, none of which was used for child support.
It is within the District Court’s discretion to decide whether the noncustodial parent has the ability to pay child support when considering modification of child support. In Matter of Adoption of K.L.J.K. (Mont. 1986), [224 Mont. 418,] 730 P.2d 1135, 1139, 43 St.Rep. 2297, 2301, we instructed trial judges to consider certain elements when determining whether a parent is able to contribute to the support of a minor child, including:
(1) The parent’s ability to earn an income;
(2) The parent’s willingness to earn an income and support his child;
(3) The availability of jobs;
(4) The parent’s use of his funds to provide himself only with the bare necessities of life prior to providing support for his child.
In taking these factors into consideration when deciding whether the noncustodial parent is able to pay, it it is easier to also decide if there has been a substantial change in circumstances. The trial court abused its discretion in modifying the support payments without a proper examination of the requirements.
The trial court also erred in modifying the amount of child support to $50.00 per month. While the guidelines suggest that no support can be for less than $50.00, to clarify, that amount should be $50.00 per month per child. This will assure that the custodial parent can properly care for the children.
When determining the proper amount of support to be paid by respondent, we would suggest that the District Court use the Uniform Child Support Guidelines (Mont. 1987), [227 Mont. 1,] 44 St.Rep. 828, and the requirements cited here before modifying the original decree.
Respondent claimed that there were mitigating circumstances which prevented him from making payments, namely: the lack of income, a spinal injury suffered in 1979, and his lack of knowledge of the whereabouts of the children in order to make payments. The District Court ruled that the circumstances did call for mitigation. The District Court abused its discretion in adopting mitigating circumstances.
The respondent claims lack of income as a mitigating excuse. The District Court ruled that Edward Callahan was to pay $300.00 per month support in the original decree. Although he has essentially the same income now that he had in 1984, the District Court modified the original decree on the grounds that respondent’s income was insufficient to pay child support. Respondent has not made a single payment of child support and makes issue of the payments three years later. Moreover, he received a settlement of $20,000.00, paying doctor’s bills and debts without making any payments to support the children. At the hearing, the District Court was disturbed with the fact that respondent had not used any of the settlement for child support, but made no mention of the settlement when he adopted the mitigating circumstances in the order.
Respondent also claims that the spinal injury limits the work he can do. A friend of the respondent, though, deposed that Edward Callahan turned down full time jobs because they were outside of Butte. Respondent also stays active by riding horses two or three times a week and doing minor excavation in the basement of his home.
The third of the mitigating circumstances was that respondent did not know the location of his children in order to send the support money. However, the respondent knew where the family was living from the time of the dissolution decree, December 1984, through the fall of 1985, and still made no payments to the appellant. Moreover, the appellant left forwarding addresses with the United States Postal Service and respondent had only to send the checks to her Stevensville address and they would have arrived at the Boyd address. The District Court erred in adopting the mitigating circumstances.
The fourth issue is whether the District Court abused its discretion in finding that the mother secreted herself and the children from the respondent.
The District Court held appellant in contempt for not keeping the respondent apprised of the location of her and her children. After the divorce appellant moved with the children to Stevensville and was there until the fall of 1985 when she moved to Boyd. She did not contact respondent to tell him that they had moved but did leave a forwarding address with the post office. Section 40-4-222, MCA, on joint custody, states:
“The legislature of the state of Montana finds and declares that it is the public policy of this state to assure minor children frequent and continuing contact with both parents after the parents have separated or dissolved their marriage and to encourage parents to share the rights and responsibilities of child rearing in order to effect this policy
6i 9f
Although both parents are to carry the rights and responsibilities, the custodial parent does not have an affirmative duty to tell the noncustodial parent of every move within the state. It is, however, our suggestion that each parent keep the other parent apprised of each other’s whereabouts. In the case on appeal, it was sufficient that the mother left forwarding addresses with the postal service and held a valid Montana driver’s license with her most current address. The father could have, with little difficulty, located the mother and children.
The fifth issue is whether the District Court erred in finding respondent in arrears the sum of $9,300.00. This was the amount due for child support up to the time of the post-dissolution hearing in July 1987. However, the court erred in not adding the accrued support due from July to December 1987 in its order of November 6, 1987. Moreover, appellant is entitled to interest accruing on the past payments still due. Torma v. Torma (1982), 198 Mont. 161, 645 P.2d 395.
The last issue is whether the District Court erred in accepting wholesale the findings of fact of the respondent. We hold here that it did so err. Error occurs when the court accepts one party’s proposed findings of fact without proper consideration of the facts and where there is lack of independent judgment by the court. In Re Marriage of Alt (Mont. 1985), [218 Mont. 327,] 708 P.2d 258, 42 St.Rep. 1621; In Re Marriage of Goodmundson (1982), 201 Mont. 535, 655 P.2d 509; In Re Marriage of Hunter (1982), 196 Mont. 235, 639 P.2d 489.
In accepting the respondent’s proposed findings, the court failed to address the $20,000.00 settlement when considering respondent’s ability to pay and whether that amount should have been used to pay support. The court also accepted respondent’s excuse that the payments were mitigated. By doing this, the court disregarded the fact that the respondent’s financial status and physical abilities were the same as they had been when the original dissolution decree was decided. Respondent claims that he could not pay support because he did not know where his children were living; but, in accepting this, the court did not consider that the respondent knew where the appellant was for one and one-half years during which time no child support payments were made.
On these grounds we reverse and remand for new proceedings. On remand, the District Court will carefully consider these issues and find accordingly. The case on appeal is one where neither of the parties has fulfilled the obligations of the dissolution decree. The mother avoided visitation attempts by the father, although they were few. The father did not make child support payments or try very diligently to locate his children to make those payments.
Reversed.
MR. JUSTICES HARRISON, SHEEHY, HUNT and McDON-OUGH concur.
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MR. JUSTICE SHEA
delivered the opinion of the Court..
Defendants Howard S. Wright Construction Co. (Wright) and Big Sky of Montana (Big Sky) bring this appeal from a judgment of the District Court, Madison County, sitting with a jury. The jury found Wright and Big Sky liable to plaintiff Regene Shannon for personal injuries he sustained while employed as a plumber at Big Sky’s resort near Bozeman, Montana, and assessed $250,000 against the defendants as compensation for Shannon’s injuries. ■
On this appeal the defendants, Wright and Big Sky contend that they were improperly held liable for Shannon’s injuries because:
1. Shannon was contributorily negligent, and
2. As owner and prime contractor, they had not duty to provide Shannon, the employee of a subcontractor, with a safe place to work.
We conclude that Shannon is not barred from recovery by contributory negligence and that under the circumstances of this case Wright and Big Sky had a duty to provide Shannon with a safe place to work.
The plaintiff, a journeyman plumber, was an employee of F. E. DeBeer Mechanical, which had subcontracted with Wright to perform the plumbing and mechanical work -at the Big Sky resort. On the day of the accident, October 4, 1973, plaintiff was working at a condominium unit known as “Stillwater B”. His work required him to be on the upper floor of the partially-constructed condominium that day. Access to the second floor could be obtained in either of two ways. First a plank, measuring about eight inches wide spanned the distance between the hill behind “Stillwater B” and a wooden beam which extended off the condominium unit. The plank was set over a deep ditch and had no handrails. Second, the plaintiff had access by a ladder which was placed on the ground under a second floor window casing. Apparently most of the tradesman who required access to the upper level of “Stillwater B” used the ladder, and entered the condominium through the unfinished window frame. As Shannon used the ladder that morning he felt it move. He testified that the next thing he remembered was waking up on the ground with several men standing around him. In his fall, Shannon received a severe compound fracture of his right ankle.
Some two years after the accident, following repeated medical procedures to correct the fractured ankle, and with the medical prognosis of permanent impairment of function, the plaintiff brought an action against his employer, DeBeer Mechanical, the general contractor, Wright, and the owner of the resort project, Big Sky. After filing the lawsuit, plaintiff entered into a separate convenant not to sue with DeBeer, and maintained his cause against Wright and Big Sky.
In their first defense, Wright and Big Sky contend that Shannon was guilty of contributory negligence, and under the law applicable at the time of the accident, Shannon must be barred from any recovery against them. Specifically, the defendants argue that Shannon ignored standard procedure by his failure to determine if the ladder was in some way tied off at the top to prevent it from slipping. In failing to exercise reasonable care for his own safety, they argued, Shannon proximately caused his own injuries and is barred from recovery for them.
A review of Shannon’s testimony shows that he had seen a fellow employee, Burch, start up a ladder shortly before he climbed onto the same ladder. He did not see Burch reach the top of the ladder, but assumed that he had gone in through the window casing. Thus, when Shannon started up the ladder he had some cause to believe it was secure. When Shannon neared the top, he felt the ladder move, and knew nothing more until he awoke on the ground, surrounded by men standing over and assisting him.
The Restatement (Second) of Torts provides in section 343A that a possessor of land has a duty to protect invitees, in certain circumstances, against even obvious dangers:
“(1) A possessor of land is not liable to his invitees for physical harm caused to them by any activity or condition on the land whose danger is known or obvious to them, unless the possessor should anticipate the harm despite such knowledge or obviousness.” (Emphasis added.)
This rule usefully serves to balance the duties of landowner and invitee, and to eliminate some of the harshness of a strict contributory negligence rule, especially in situations such as construction where various dangers are likely to exist. As the Second Circuit Court of Appeals has observed:
“Although the invitee (or in this case the employee) may be under a duty to avoid harm likely to result to him from open and obvious dangers, he may not be in a position fully to appreciate the risk or to avoid the danger even though aware of it. For instance, his attention may be distracted or his duties as an employee may require his unavoidable exposure to it.” Napoli v. Hellenic Lines, Ltd. (2d. Cir. 1976), 536 F.2d 505, 508.
Thus, in situations where an accident victim is likely to be distracted and forget about the danger to him, some jurisdictions refuse to hold that a plaintiff will be barred from recovery by his own contributory negligence. Barrett v. Foster Grant Co. (1st Cir. 1971), 450 F.2d 1146, 1153. This is especially so in situations where an employee is involved and the employee, if he is to continue his employment, has no alternative but to continue facing the risk or hazard. Bitsos v. Red Owl Stores, Inc. (8th Cir. 1972), 459 F.2d 656, 662; Restatement (Second) of Torts, § 343A, Comment f.(1965). In Bitsos, a refrigerator repairman, in order to complete a job for the defendant, was forced to use a dark obstructed stairway. Even though he had been up and down the stairway several times and knew of its hazardous condition, the repairman was still permitted to recover when he eventually fell and injured himself. Lake v. Emigh (1946), 118 Mont. 325, 167 P.2d 575, relied upon by defendants to bar plaintiff’s recovery in this case, does not deal with the problem of an employee working in a potentially hazardous situation. In Lake, the plaintiff was a tenant of the defendant who fell from her landlord’s stepladder which she knew was defective. 118 Mont. at 331, 167 P.2d at 577. The plaintiff was hanging clothes at the time of her accident, and could have found means other than her landlord’s shaky stepladder to accomplish that task. In the present case, Shannon was compelled to use either a ladder or an unsupported plank across a deep ditch if he was to perform his plumbing work. Thus, a situation very much like that des cribed in Illustration 5 to Comment (f) of section 343A occurred here:
“5. A owns an office building, in which he rents an office for business purposes to B. The only approach to the office is over a slippery waxed stairway, whose condition is visible and quite obvious. C, employed by B in the office, uses the stairway on her way to work, slips on it, and is injured. Her only alternative to taking the risk was to forego her employment. A is subject to liability to C.”
In this case Shannon had no control over the manner in which access to the upper floor of “Stillwater B” was provided. The evidence showed that the DeBeer superintendent, James Begley had made repeated requests of Wright and Big Sky supervisors to build temporary stairs for access to the second level of the condominiums. Apparently Big Sky’s priority at the time of Shannon’s injury was the “commercial core” or “complex” which consisted of several stores, bars, a restaurant, and other buildings, and the carpenters employed by Wright and other subcontractors were kept busy in that area. Francis DeBeer, the president of DeBeer Mechanical testified that Big Sky’s head of construction and design, Bing Lancaster, had put strenuous pressure on Wright and the subcontractors to complete the “commercial core” by December 15:
“For instance, he would be thumping on the table and he said, ‘I want to be frying hamburgers in the commercial core on December 15th,’ and this was an impossibility with the crews that were up there unless something else suffered.”
DeBeer further testified that the plumbing subcontractor in a normal situation could expect the general contractor to provide access for the subcontractor’s employees, but that in this case, Big Sky’s head man on the job exercised his authority to put carpenters and framers onto other jobs:
Normally, in construction work, the general contractor or framer — we’ll say the general contractor — will supply us with access into a building land due to the fact that Lancaster thumped the desk and shouted and ranted and raved that he was going to be frying hamburgers in the commercial core so they could open up naturally for the holidays, and they pulled all the framers off.
“Q. Off of what? A. The Stillwater Condominiums and sent them to the commercial core and this forced us into using ladders to gain access to the second floor . .. They gave us stairs in the commercial core and in the hotel but then they were getting down to the nitty-gritty when they wanted to open the commercial core and we had no framers to give us stairs; they were all on the commercial core.”
Thus, Shannon had no choice but to continue to use the makeshift access which was available at “Stillwater B”. Under those circumstances he is not absolutely barred from recovery on the basis of contributory negligence. The jury was well apprised of the reason for the unsafe conditions, that Big Sky’s rush to complete the commercial core resulted in the decision not to provide stairs, and that Shannon had to either forego his employment or continually climb the ladder. It was entitled to consider these factors and the possibility that because of his many trips up and down the ladder Shannon might not always have taken adequate precautions to protect himself from injury.
A related, though somewhat more complicated issue is raised by the defendants’ contention that as owner-contractee and general contractor of the project, they owed no duty to Shannon, the employee of a subcontractor. The general question presented here has been the subject of numerous decisions and has generated much policy discussion concerning the appropriate distribution of responsibility for safety and compensation for injuries in the construction industry. See, Sweet, Legal Aspects of Architecture, Engineering and the Construction Process 713-19 (1977).
Montana has long recognized the general rule that absent some form of control over the subcontractor’s method of operation, the general contractor and owner of a construction project are not liable for injuries to the subcontractor’s employees. West v. Morrison-Knudsen Co. (9th Cir. 1971), 451 F.2d 493, 495 (construing Montana law); Wells v. Stanley J. Thill & Associates, Inc. (1969), 153 Mont. 28, 33, 452 P.2d 1015, 1017-18; Hackley v. Waldorf-Hoerner Paper Products Co. (1967), 149 Mont. 286, 295-96, 425 P.2d 712, 717. This general rule however, has sometimes been described as “primarily important as a preamble to the catalog of its exceptions.” Pacific Fire Insurance Co. v. Kenny Boiler & Manufacturing Co. (1937), 201 Minn. 500, 277 N.W. 226, 228. One court has stated that there are so many exceptions to the general rule of nonliability that the rule is applied only when there is no good reason found not to apply it. Walker v. Capistrano Sad dle Club (1970), 12 Cal.App.3d 894, 898, 90 Cal.Rptr.912, 913-14. See also, Sweet, supra at 717-719. Examples of such exceptions as applied to general contractors were listed in a decision by the federal district court for Montana in 1960:
“Those cases in which the prime contractor has been held liable to an employee of an independent contractor who comes upon the premises to perform the work which results in his injury are cases where the prime contractor either . . (2) fails to provide a reasonably safe place to work or to warn of any hidden or lurking danger therein; or (3) is responsible for the dangerous condition, such as furnishing defective equipment; or fails to co-ordinate adequately the work of independent sub-contractors.” O’Leary v. James & Wunderlich (D.Mont. 1960), 192 F.Supp. 462, 473-74, aff'd per curiam (9th Cir. 1961), 288 F.2d 462. See also, Annot. 20 A.L.R.2d 868, 873.
In Hackley, this Court noted but did not apply an exception applicable to the owner of the premises under construction:
“While this state has not had to consider the matter there is an exception to the rule which arises when a landlord has retained control over the property on which work is being performed. The landlord then has the duty to use ordinary care; so that the premises will be reasonably safe for the independent contractor’s servants.” 149 Mont. at 296, 425 P.2d at 717.
Thus, in order to determine whether the general common law rule or its exception applies to this case, it is necessary to determine to what extent the owner Big Sky and the general contractor Wright controlled the working circumstances of the subcontractors at the Stillwater Condominium job site. In the first instance it should be noted that under the applicable definition, plaintiff Shannon and F. E. DeBeer Mechanical must be considered independent contractors. The testimony establishes that in the actual installation of plumbing facilities, Shannon and other DeBeer plumbers were free to use their own means and execute the work according to their own ideas. They were not subject to Wright’s or Big Sky’s orders as to the details of their work. See Allen v. Bear Creek Co. (1911), 43 Mont. 269, 285, 115 P. 673, 679. The exceptions listed in O’Leary and Hackley do not however rest on whether the general contractor or owner retain control over the specific manner in which a worker performs his contractual obligations. Rather, the test stated in Hackley applies to the control which the owner has retained over the property on which work is being performed. In O’Leary, the exceptions concern the failure of the general contractor to provide a safe place to work or to his creating unsafe working conditions by providing defective equipment or inadequately coordinating the work of the various subcontractors at a job site.
With these factors in mind, the testimony of Wright and DeBeer personnel establishes that the exception rather than the common-law rule applies to both Wright and Big Sky, because they retained control over the property and working conditions. The evidence is undisputed that both defendants took an active part in decision-making which affected the working conditions at the Still-water Condominium complex. Francis DeBeer, (one of the subcontractors), testified that the real reason for the lack of adequate access to the upper floors of the Stillwater Condominiums was Big Sky’s insistence on completion of another part of the resort by December 15, 1973. Big Sky’s head of construction and design, Bing Lancaster, took steps to assure that completion, which had a direct effect on the working conditions at Stillwater B. In DeBeer’s opinion, Lancaster’s concern with the commercial core created “an unsafe situation” for the DeBeer employees.
The project manager for Wright Construction Company, Dennis Buchanan, testified similarly, indicating that the Big Sky project was “unusual,” in that when construction started, the various structures had not been totally designed. This circumstance, he said, required Big Sky’s constant presence at the project. He further testified that Big Sky was “very actively involved” and made design changes from time to time.
The project superintendent for Wright, Wayne Norlen, coordinated the work of various Wright subcontractors such as DeBeer. He testified that Big Sky intervened directly in the matter of stairs to the upper floor of the Stillwater Condominiums. According to Norlen, the original plans called for stairs to be placed as soon as the sub-floors were completed on the second floor, but Big Sky placed a hold order on the stairs because water pipelines had not yet been placed in the ground under the stairs as called for in the plans. Big Sky instructed him however, to proceed with the rest of the condominium project because “[w]e were told that the condos were sold and completion dates were promised to the purchasers.”
Norlen also testified in some detail about the matter of access, saying that the reason that the stairs were not built onto the condominiums in the first place was that the DeBeer superintendent, James Begley, had requested that concrete footings not be put in place for those stairs until DeBeer had installed water lines. Later on in the project, as the date for completion of the commercial core drew near, it was Big Sky’s emphasis on- that portion of the project that deprived the condominium project of the framers who might build even temporary stairs. However, despite Big Sky’s demand for framers at the commercial core and its stop order on stairs, Norlen testified that as the project superintendent for Wright Construction he decided not to provide temporary stairs:
“Q. Did you ever consider putting in some temporary stairs prior to October of 1973 even though you were requested not to put in the permanent stairs? A. Yes.
“Q. And yet this was not done? A. No.
“Q. Was that your decision? A. Yes. I might add the reason for that that they weren’t installed, my personal feelings were that they would have been more treacherous than the ladders due to the weather conditions at Big Sky.”
Finally, Norlen testified that he had never been requested by any subcontractor to provide any temporary stairs. But James Begley and Francis DeBeer, on the other hand, testified that they had repeatedly asked Dennis Buchanan and Bing Lancaster for stairs. Within a few days after Shannon’s accident, crews from the framing subcontractor and Wright put in temporary stairs and hand rails.
The evidence of the working relationships among Big Sky, Wright and DeBeer, then, show that Big Sky and Wright had more than a general right to inspect the work of the subcontractor. Specifically it shows that Big Sky and Wright could and did exercise control over the means by which the subcontractors’ employees could reach their places of work on the upper levels of the condominiums. The extra hazards created by the need to use extension ladders can be attributed directly to Wright and Big Sky.
Recent decisions by the Supreme Courts of Michigan and Wash-,, ington have applied the exceptions to the independent contractor rule noted in O’Leary and Hackley and help explain the rationale for those exceptions, which this Court has not previously applied. In Funk v. General Motors Corp., (1974), 392 Mich. 91, 220 N.W.2d 641, an employee of a plumbing subcontractor brought an action against the owner (G.M.) and general contractor (Darin and Armstrong) for injuries he sustained in a fall at the owner’s new plant. Funk, a plumber, was removing a section of pipe from an area near the roof when he fell some thirty feet to the ground. The Michigan Supreme Court acknowledged that Funk was not under direct supervision, and that the immediate cause of his injury was “the manner in which Funk chose to complete the assigned task.” Yet the Court concluded that both the owner and the general contractor had retained sufficient control of the common work areas where various subcontractors performed their tasks to charge them with liability for Funk’s injury. Funk had based his claim upon the fact that G.M. and Darin and Armstrong had not required the use of safety nets or lines. In finding that G.M., the owner, could be held liable for Funk’s injuries, the Court looked in particular to the supervisory authority exercised by a G.M. representative at the construction site, especially over the “common work areas.” The Court concluded that this supervisory authority established a proper basis upon which an owner could be held liable for injuries to the employee of an independent subcontractor.
“General Motors is subject to liability because a jury could properly conclude that General Motors, despite its designation as owner, retained and exercised sufficient control for its own negligence in failing to implement reasonable safety precautions the general contractor and subcontractor.” 220 N.W.2d at 648.
As to the general contractor, the Court emphasized the dual policy behind tort law which seeks not only to compensate the victim but also to “encourage implementation of reasonable safeguards against risks of injury.” 220 N.W.2d at 646. The Court reasoned that placing the ultimate responsibility for job safety on the general contractor for job safety in “common work area” will, as a practical matter, make it more likely that adequate safety precautions will be taken. It cited approvingly the California decision of Alber v. Owens (1967), 66 Cal.2d 790, 59 Cal.Rptr. 117, 121-22, 427 P.2d 781, 785-86.
“ ‘[A]s a practical matter in many cases only the general contractor is in a position to coordinate work or provide expensive safety features that protect employees of many or all of the subcontractors. * * * [I]t must be recognized that even if subcontractors and supervisory employees are aware of safety violations they often are unable to rectify the situation themselves and are in too poor an economic position to compel their superiors to do so’.” 220 N.W.2d at 646.
In a more recent decision, the Washington Supreme Court approved the Funk rationale as applied to general contractors. Kelley v. Howard S. Wright Construction Co. (1978), 90 Wash.2d 323, 582 P.2d 500. In Kelley, an employee of a subcontractor fell from a platform laid on structural beams of a bank building project. There were no safety lines or nets. The Washington Court affirmed a judgment for the employee against the general contractor (Wright). The Court quoted approvingly from the Funk decision in concluding that Wright owed a common-law duty to the subcontractor’s employees to provide them with a safe place to work. 582 P.2d at 505-06. The Kelley decision, like Funk, places great weight on the general contractor’s superior position to require safety precautions by all the subcontractors on a particular job site. “Wright’s general supervisory functions are sufficient to establish control over the work conditions of [the subcontractor’s] employee Kelley.” 582 P.2d at 505.
“We believe the approach taken by the Michigan Supreme Court is sound. It recognizes the authority the general contractor has to require safety precautions on the job site. This authority over work conditions clearly falls within the rubric of ‘control’ as an exception to the common law rule of nonliability. The area in which respondent Kelley’s accident occurred was one in which four different contractors had worked within a short period of time. Wright had supervisory and coordinating authority over them all. We hold appellant had a duty to see that proper safety precautions were taken in that area to provide the employees with a safe place of work.” 582 P.2d at 506.
The present case presents a situation even more compellingly in favor of holding the owner and general contractor liable for the subcontractor’s employee’s injuries. Big Sky not only retained the supervisory capacity which General Motors had in Funk, but exercised that authority in a manner that directly affected the access of the subcontractor’s employees to the condominiums, thereby forcing them to climb ladders and crawl through a window casing. In Wright’s case, as general contractor, it had the authority to order temporary stairs and handrails built, but its project superintendent, Norlen, decided not to. The plumbers employed by DeBeer were not carpenters and could not have built their own stairway without creating union difficulties. Thus the authority to create safe working conditions rested entirely with Big Sky and Wright. Under these circumstances, the jury could properly find the owner and general contractor liable for injury to a subcontractor’s employee.
The defendants contend however, that the jury was improperly instructed by the court’s instruction No. 18, which recited the provisions of section 41-1710, R.C.M. 1947, now section 50-71-201 MCA, as applied to prime or general contractors. That statute provides that employers, including prime contractors, must follow certain standards to insure that their employees have a safe place to work:
“Every employer shall furnish a place of employment which is safe for employees therein, and shall furnish and use, and require the use of, such safety devices and safeguards, and shall adopt and use such practices, means, methods, operations and processes as are reasonably adequate to render the place of employment safe, and shall do every other thing reasonably necessary to protect the life and safety of employees.”
The definition applicable to “employer” is found in section 92-410.1, R.C.M. 1947, now section 39-71-117 MCA:
“ ‘Employer’ means the state and each county, city and county, city school district, irrigation district, all other districts established by law and all public corporations and quasi-public corporations and public agencies therein and every person, every prime contractor, and every firm, voluntary association and private corporation, including any public service corporation and including an independent contractor who has any person in service under any appointment or contract of hire, expressed or implied, oral or written, and the legal reresentative of any deceased employer or the receiver or trustee thereof.”
Defendants contend that under the definitions of employer niether Big Sky nor Wright come within the terms of section 41-1710, aruging that it applies only to those who have "control over the independent subcontractor”. Defendants cite Hackley in support of this position. It is true that in Hackley this Court held that the employer safety statute at issue there, section 41-1702, R.C.M.1947, did not apply to Waldorf-Hoerner because the injured employee in that case was the employee of an independent contractor. 149 Mont. at 293-94, 425 P.2d at 716. However, since Hackley, which was decided in 1967, the legislature has repealed and replaced both the safety statute and definition of employer under which that case was decided. Ch. 341, sec. 30, Laws of Montana (1969), repealing sec. 41-1702 R.C.M.1947 Ch. 154 sec. 2 Laws of Montana (1973) repealing sec. 92-410, R.C.M.1947. The definition of employer in 1967 made no mention of “prime contractors”.
Presumably the legislature intended to effect some change by its addition of “prime contractor” to the definition, and logically this was to do away with the distinction between the prime or general contractor’s employees and the employees of subcontractors for purposes of the application of the “safe place to work” provisions of section 41-1708 through 1733, R.C.M. 1947, now sections 50-71-101 through 110, 201 through 203, 301 through 303, 311 through 316, 321 through 327, and 331 through 334 MCA. This application of a “safe place to work” statute is supported by decisions in others jurisdictions, notably the Kelley decision discussed previously. There the Court found that not only did the common law support a finding of general contractor liability, but also the Washington safety statute then in effect. The Court reaffirmed its ruling in Bayne v. Tood Shipyards Corp. (1977), 88 Wash.2d 917, 568 P.2d 771, in which it applied a safety statute similar to section 41-1710, to any “worker who is lawfully on the premises in pursuit of his own employment and at the invitation of a third party ...” 568 P.2d at 773.
Defendant Big Sky argues that section 41-1710 cannot apply to Big Sky as a owner, but that issue is not a problem here. Instruction No. 18 which described section 41-1710 to the jury, by its very terms limited the application of the statute to prime or general contractors. Thus, by its wording, instruction No. 18 could only be understood by the jury to apply.to Wright Construction.
In summary we hold that the plaintiff is not barred from recovery by contributory negligence because he had no way to avoid the unsafe conditions which existed at “Stillwater B” other than foregoing his employment and because it was foreseeable to the defendants that he might forget to exercise a sufficient degree of caution in his repeated trips up and down the ladders. Moreover, Big Sky and Wright had a duty to provide the employees of their subcontractors with a safe place to work because each retained control over the working conditions at the Stillwater condominium site.
The judgment of the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY and SHEEHY concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
Yancy W. Shupe (Yancy) appeals from the Findings of Fact, Conclusions of Law and Order of the Thirteenth Judicial District Court, Stillwater County, denying his petition for modification of custody. The court based the denial on its conclusions that it did not have subject matter jurisdiction to modify custody under the Parental Kidnapping Prevention Act, 28U.S.C. § 1738A, and that Yancy failed to satisfy the statutory requirements for modification. We affirm.
The dispositive issues on appeal are:
1. Is Yancy’s appeal properly before us?
2. Did the District Court err in concluding that it did not have subject matter jurisdiction to modify custody under the Parental Kidnapping Prevention Act?
Yancy and Pamela Shupe (Pamela) are the parents of a minor child, Megan Shupe (Megan). Before the events at issue in this case, the family resided in Utah. In October of 1993, Yancy moved to Nye, Montana, to work at the Stillwater Mine; Pamela and Megan remained in Utah. Yancy and Pamela’s marriage was dissolved by a Utah district court on January 12,1994. In the decree of dissolution, the court granted Pamela sole custody of Megan and awarded Yancy liberal visitation rights.
Pamela and Megan remained in Utah immediately following the dissolution of the parties’ marriage. The record reflects that, between April of 1994 and J anuary of 1995, Pamela and Megan went back and forth between Montana and Utah on numerous occasions. Yancy moved some of Pamela’s belongings to Montana in July of 1994. The parties agree that Pamela and Megan lived with Yancy in Montana from January of 1995 until sometime in March of that year.
On March 9,1995, Pamela and Megan were involved in a single-car accident while returning to Nye from Dean, Montana; neither Pamela nor Megan was injured. Pamela was cited for driving under the influence of alcohol (DUI) and pleaded not guilty. Pamela and Megan returned to Utah later that month and lived with Pamela’s mother.
In April of 1995, Yancy moved the District Court for a temporary order changing Megan’s custody to him. He also petitioned for modification of custody pursuant to § 40-4-219, MCA. The District Court concluded that it did not have subject matter jurisdiction to modify custody under the Parental Kidnapping Prevention Act (PKPA) and, further, that Yancy failed to satisfy the statutory requirements for modification of custody. Yancy appeals. Additional facts are set forth below where necessary to our resolution of the issues.
1. Is Yancy’s appeal properly before us?
Pamela contends that the District Court’s order merely denied Yancy’s motion for temporary custody and that such an order is not appealable under Rule 1, M.R.App.P. While we agree with Pamela that Rule 1, M.R.App.P., does not authorize an appeal from an order denying a motion for temporary change of custody, we disagree that the District Court’s May 30, 1995, order was a mere denial of such a motion.
Yancy filed a motion for a temporary order changing custody and a petition for modification of custody under § 40-4-219, MCA, on the same date. The District Court held a hearing on May 14, 1995. The record reflects that, at the beginning of the hearing, the parties and the court were confused as to whether the hearing was limited to Yancy’s motion for temporary custody or whether his petition for modification also was being heard. The District Court first indicated that only Yancy’s motion for temporary custody was before it, then indicated that it also would hear Yancy’s petition for modification of custody and, finally, indicated again that only the motion for temporary custody was being heard.
The District Court’s findings of fact, conclusions of law and order state at the outset, and without further clarification, that “[t]his matter” was heard on May 14, 1995. The court’s findings and conclusions address both jurisdiction and custody modification. Regarding the latter, the court concluded that Yancy had not met the requirements of § 40-4-219, MCA, and denied Yancy’s “petition.”
On the basis of the record before us, we cannot conclude that the District Court’s order was limited to denying Yancy’s motion for a temporary change of custody. We conclude that the order at issue substantively denied Yancy’s § 40-4-219, MCA, petition for modification of custody on the bases of lack of subject matter jurisdiction and failure to satisfy the statutory requirements for custody modification. As a result, we hold that the District Court’s order is appealable under Rule 1, M.RApp.P., and that Yancy’s appeal is properly before us.
2. Did the District Court err in concluding that it did not have subject matter jurisdiction to modify custody under the PKPA?
A. APPLICABILITY OF THE PKPA
All fifty states have adopted the Uniform Child Custody Jurisdiction Act (UCCJA) in some form to address interstate custody disputes. See Meade v. Meade (4th Cir. 1987), 812 F.2d 1473, 1475. However, the UCCJA was found to be inadequate in addressing the problems of forum shopping and “child snatching” because it operated at the state level. Erler v. Erler (1993), 261 Mont. 65, 69, 862 P.2d 12, 15. Moreover, as the Utah Court of Appeals observed in Curtis v. Curtis (Utah Ct. App. 1990), 789 P.2d 717, 721 n.9, the UCCJA creates the possibility of several states having concurrent jurisdiction over child custody determinations.
Congress enacted the PKPA in 1980 to establish national standards under which the courts of various states could determine whether they had jurisdiction in a child custody proceeding and what effect to give custody determinations by courts of other jurisdictions. Erler, 862 P.2d at 15. Under the PKPA, full faith and credit ordinarily must be given to a custody determination made by a court of another state if that court appropriately exercised jurisdiction under PKPA standards. See 28 U.S.C. § 1738A(a); Erler, 862 P.2d at 15.
Two underlying purposes of the PKPA are to discourage continuing interstate controversies over child custody and to facilitate the enforcement of custody determinations of sister states. Erler, 862 P.2d at 15 (citation omitted). In this regard, the PKPA prevents the issuance of competing decrees of sister states. Erler, 862 P.2d at 16 (citing Nielsen v. Nielsen (La. 1985), 472 So. 2d 133, 136). Thus, the PKPA sets forth standards for determining the one state with jurisdiction to modify an existing custody order. See 28 U.S.C. §§ 1738A(d) and (f); Curtis, 789 P.2d at 721.
The purposes of the PKPA are achieved through both 28 U.S.C. §§ 1738A(d) and (f). 28 U.S.C. § 1738A(d) provides for continuing jurisdiction in the state in which the original child custody determination was made so long as certain enumerated requirements are satisfied (see Erler, 862 P.2d at 15), while 28 U.S.C. § 1738A(f) allows a court of a different state to modify a custody determination only when it has jurisdiction to make such a determination under its own laws and the court which made the original custody determination no longer has jurisdiction or has declined to exercise such jurisdiction (see Meade, 812 F.2d at 1476-77). Thus, Congress’ enactment of 28 U.S.C. §§ 1738A(d) and (f) remedied the problem of possible concurrent jurisdiction present in the UCC JA. Accordingly, where the PKPA applies, necessary jurisdictional determinations must be made thereunder.
Yancy argues that, pursuant to Erler, the PKPA does not apply to his petition for modification of custody. His reliance on Erler, however, is misplaced.
In Erler, the parties’ marriage was dissolved by a Montana district court in Missoula County and the mother was granted sole custody of the parties’minor children. The mother and children subsequently moved to Seattle, Washington and, thereafter, the father moved to modify custody in the district court in Missoula County. Erler, 862 P.2d at 13. On appeal, we affirmed the district court’s determination that it did not have subject matter jurisdiction under the PKPA, concluding that the PKPA did not apply because Montana was the only state involved in the custody dispute. Erler, 862 P.2d at 16.
Here, Yancy petitioned a Montana court for modification of the Utah court’s child custody determination regarding Megan. Thus, unlike in Erler, two states are involved in this custody dispute. The PKPA was enacted by Congress to address such a situation and to prevent the issuance of conflicting and competing custody decrees in sister states. Erler, 862 P.2d at 16. We conclude, therefore, that the PKPA is applicable here. Accordingly, we turn to the issue of whether the District Court erred in concluding that it did not have subject matter jurisdiction to modify custody under the PKPA.
B. SUB JECT MATTER JURISDICTION UNDER THE PKPA
The PKPA generally requires the courts of a state to enforce — and decline to modify — child custody determinations made by the courts of other states. 28 U.S.C. § 1738A(a). A specific exception to the general rule authorizes a court to modify a child custody determination made by a court in another state when two requirements are satisfied: (1) the court has jurisdiction to make a child custody determination; and (2) the court of the other state no longer has jurisdiction or has declined to exercise jurisdiction. 28 U.S.C. § 1738A(f).
(1) Analysis of Montana Jurisdiction
Under the first requirement of 28 U.S.C. § 1738A(f), a Montana district court must have jurisdiction to make the child custody determination pursuant to Montana law. See 28 § 1738A(f)(1). Since the custody dispute in this case has interstate ramifications, Montana’s version of the UCCJA governs whether a Montana district court has jurisdiction to make a custody determination under Montana law. See §§ 40-7-101 through 40-7-125, MCA. Section 40-7-104, MCA, provides that “[t]he jurisdictional provisions of 40-4-211 applytothis chapter.”
Section 40-4-211(1), MCA, sets forth four alternative bases under which a Montana district court has jurisdiction to “make a child custody determination by initial or modification decree.” Because the statute is written in the disjunctive, only one of the stated bases need exist in order for a Montana court to have jurisdiction under Montana law. The District Court addressed each alternative and concluded that it did not have jurisdiction to make a custody determination under § 40-4-211(1), MCA. Given the facts of this case, it is appropriate to limit our review to the District Court’s findings and conclusion under the § 40-4-211(1)(b), MCA, basis for jurisdiction.
Section 40-4-211, MCA, provides in pertinent part:
(1) A court of this state competent to decide child custody matters has jurisdiction to make a child custody determination by initial or modification decree if:
....
(b) it is in the best interest of the child that a court of this state assume jurisdiction because:
(i) the child and his parents or the child and at least one contestant have a significant connection with this state; and
(ii) there is available in this state substantial evidence concerning the child’s present or future care, protection, training, and personal relationships ....
The District Court found that neither the “significant connection” factor referenced in § 40-4-211(1)(b)(i), MCA, nor the “substantial evidence” factor referenced in § 40-4-211(1)(b)(ii), MCA, was satisfied in this case. Based on those findings, the District Court concluded that it did not have jurisdiction pursuant to § 40-4-211(1)(b), MCA, to make a custody determination.
We review a district court’s findings of fact to determine whether the findings are clearly erroneous. In re Marriage of Brownell (1993), 263 Mont. 78, 81, 865 P.2d 307, 309 (citation omitted). A court’s findings are clearly erroneous if they are not supported by substantial evidence, the court misapprehends the effect of the evidence, or our review of the record convinces us that a mistake has been committed. Marriage of Brownell, 865 P.2d at 309 (citation omitted). We review a district court’s conclusions of law to determine if the court’s interpretation of the law is correct. In re Marriage of Kovash (1995), 270 Mont. 517, 521, 893 P.2d 860, 863 (citation omitted).
The District Court found that “[t]here are not significant contacts with Montana” and did not further elucidate. Although the District Court used the language “significant contacts,” it apparently was referring to the “significant connection” factor contained in § 40-4-211(1)(b)(i), MCA; as set forth above, that statutory subsection, as it pertains to this case, requires that Megan and either Yancy or Pamela have a significant connection with Montana.
Here, Yancy lives and works in Montana and, as a result, clearly has a significant connection with this state. Indeed, Pamela does not dispute Yancy’s significant connection with Montana and the court did not find otherwise. With regard to Megan’s connection to Montana, the record reflects that she resided in Montana for nearly three months almost immediately preceding Yancy’s petition. In addition, she has visited Montana on numerous occasions and for varying periods of time since the parties’ divorce. Moreover, the record indicates that Megan’s paternal grandmother lives in Montana.
Pamela argues that “[tjhere is clearly sufficient evidence in the record to support the District Court’s determination” and, in support of her argument, sets forth facts of record indicating that Megan has a significant connection with Utah. However, evidence that Megan has a significant connection with Utah does not equate to a lack of a significant connection with Montana.
We note that the District Court’s ultimate finding that “[t]here are not significant contacts with Montana” is irreconcilable with its underlying findings regarding Megan’s, and even Pamela’s, connection with Montana. For example, the court found that Yancy and Pamela “both agree that [Pamela and Megan] resided in Montana from January, 1995 until March, 1995.” The court further found that Pamela opened a bank account in Montana in January of 1995 and that Pamela and Megan spent “periods of 1994” in Montana. Thus, the District Court’s finding that there are not significant “contacts” with Montana is not supported by substantial evidence and is clearly erroneous.
In light of the District Court’s multiple findings regarding Pamela and Megan’s connection with Montana and the evidence of record as set forth above, it is clear that Megan had a significant connection with Montana as required by § 40-4-211(1)(b)(i), MCA. As previously stated, the parties do not dispute that Yancy has a significant connection with Montana and the District Court did not find otherwise. Thus, the additional § 40-4-211(1)(b)(i), MCA, requirement that one of the contestants also have a significant connection with Montana is satisfied in this case.
The District Court also found that there is not substantial evidence in Montana concerning Megan’s present or future care, protection, training and personal relationships. Pamela argues that the District Court’s finding in this regard is supported by substantial evidence because she and Megan “were only in Montana for a short period of time.” However, evidence that Megan and Pamela were only in Montana for a “short period of time” does not necessarily mean that substantial evidence regarding Megan’s present and future care, protection, training and personal relationships does not exist in Montana. Moreover, § 40-4-211(1)(b)(i), MCA, which contains the foregoing “substantial evidence” prerequisite to jurisdiction, is not time-related.
The record contains the following evidence which exists in Montana and which the District Court did not address in ultimately-finding that there is not substantial evidence in Montana regarding Megan’s present and future care, protection, training and personal relationships. Officer Silk It Wak Rivera, the highway patrol officer who investigated Pamela and Megan’s accident, testified about the details of the accident and Pamela’s DUI citation. Marilyn Kober, the Stillwater County Justice of the Peace, testified that Pamela had alcohol on her breath when she appeared on her DUI charge. Moreover, the record reflects that Pamela and Yancy’s neighbors and friends in Nye, Montana, have information about the parties’ roles in caring for Megan. For example, Cleo Eberhart (Cleo) testified that she did not have any concerns about Pamela’s capabilities as a mother and that she thought Pamela was a good mother. Cleo further testified that Pamela was Megan’s primary caregiver. Finally, as previously stated, Yancy and his mother — who is Megan’s paternal grandmother — live in Montana. In light of the foregoing evidence, we conclude that the District Court’s finding that there is not substantial evidence in Montana regarding Megan’s present or future care, protection, training and personal relationships for jurisdictional purposes under § 40-4-211(1)(b)(ii), MCA, is not supported by substantial evidence and, therefore, is clearly erroneous.
Based on our conclusions that the District Court’s jurisdictional findings under § 40-4-211(1)(b), MCA, are clearly erroneous, we hold that the District Court erred in concluding that it did not have jurisdiction under § 40-4-211(1), MCA, to make a custody determination.
(2) Analysis of Utah Jurisdiction
The fact that Montana has jurisdiction under its own laws to make a custody determination does not, however, resolve the issue of whether the District Court has jurisdiction under the PKPA to modify the original Utah custody determination. In order to do so, the second requirement of 28 U.S.C. § 1738A(f) also must be met; namely, that Utah no longer has jurisdiction or has declined to exercise such jurisdiction to modify its earlier custody determination. See 28 U.S.C. § 1738A(f)(2). Yancy did not file a motion or petition for modification of custody in Utah and the parties agree that Utah has not declined to exercise jurisdiction. Therefore, our review is limited to the District Court’s conclusion that Utah did not lose jurisdiction over matters relating to Megan’s custody.
Utah’s version of the UCCJA, set forth at Title 78, Chapter 45c of the Utah Code Annotated, governs whether Utah district courts have jurisdiction. Section 78-45c-3, Utah Code Ann., like § 40-4-211(1), MCA, sets forth four alternative bases under which a Utah district court would have jurisdiction to “make a child custody determination by initial or modification decree.” The District Court found that, when this proceeding was commenced in April of 1995, Utah was Megan’s home state. Based on that finding, the court concluded that “Utah did not lose its jurisdiction.”
Under § 78-45c-3(1)(a)(i), Utah Code Ann., Utah has jurisdiction if Utah was, in fact, Megan’s home state at the time Yancy commenced these proceedings. Section 78-45c-2(5), Utah Code Ann., defines “home state” as “the state in which the child immediately preceding the time involved lived with his parents [or] parent... for at least six consecutive months. ...” Yancy and Pamela agree that Megan lived in Montana with them from January until sometime in March of 1995. Therefore, the District Court’s finding that Utah was Megan’s home state is not supported by substantial evidence and is clearly erroneous.
Notwithstanding the District Court’s erroneous finding, however, the court’s conclusion that Utah has jurisdiction over matters involving Megan’s custody is not necessarily incorrect. It is well-established that we will affirm a district court’s decision which reaches the right result, regardless of the court’s reasoning. See Farmer’s Union Cent. Exch. v. Department of Revenue (1995), 272 Mont. 471, 475, 901 P.2d 561, 563; Bohmer v. Uninsured Employers’ Fund (1994), 266 Mont. 289, 291, 880 P.2d 816, 817.
Under Utah law, as in Montana, another basis for jurisdiction over custody determinations is that it is in the child’s best interests for Utah to assume jurisdiction because the child and at least one contestant have a significant connection with Utah and there exists in Utah substantial evidence regarding the child’s present and future care, protection, training and personal relationships. See § 78-45c-3(1)(b), Utah Code Ann. We note that the District Court did not address this basis for Utah jurisdiction, presumably because it concluded that Utah was Megan’s home state.
The record contains the following evidence regarding Pamela and Megan’s connection with Utah. Megan was born in Utah and has lived there most of her life, with the exception of approximately three months in which she lived in Montana and periods of time in 1994 when she visited Montana. After leaving Montana in March of 1995, Pamela and Megan returned to Utah and lived with Pamela’s mother and Megan’s maternal grandmother, Ivy Northlander. Additionally, Pamela’s other children, who are Megan’s half-siblings, live in Utah. Thus, the record reflects that both Pamela and Megan have a significant connection with Utah.
The record also reflects that substantial evidence exists in Utah concerning Megan’s present and future care, protection, training and personal relationships. For example, Lonni Watson, a friend of Pamela’s in Utah, testified that she did not have any concerns about Pamela’s ability to care for Megan and that Pamela “spoils [Megan] rotten.” Additionally, Pamela’s mother, Ivy, testified regarding Pamela’s relationship with Megan. Ivy testified that Pamela and Megan were living with her in Utah and that Megan was well cared for by Pamela.
In light of the foregoing evidence, we conclude that, at the time Yancy petitioned the District Court for modification of Utah’s custody determination, Utah had jurisdiction to make a child custody determination under § 78-45c-3(1)(b), Utah Code Ann. Thus, we hold that the District Court’s conclusion that Utah did not lose jurisdiction is correct. We observe, in this regard, that our conclusions that Montana and that Utah both have jurisdiction under their respective laws to make a child custody determination illustrate the problems regarding concurrent jurisdiction which can arise under the UCCJA and which were remedied by enactment of the PKPA.
Since Utah has jurisdiction to make a custody determination, the requirement of 28 U.S.C. § 1738A(f)(2) — that Utah no longer has jurisdiction to make a child custody determination or declined to exercise such jurisdiction — is not satisfied. Thus, notwithstanding that the requirement of 28 U.S.C. § 1738A(f)(1) — that Montana has jurisdiction to make a custody determination under Montana law — is satisfied, the District Court was not authorized to modify the original Utah custody determination regarding Megan under 28 U.S.C. § 1738A(f). Accordingly, we hold that the District Court correctly concluded that it did not have subject matter jurisdiction under the PKPA to modify Utah’s original custody determination in this case.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, TRIEWEILER and NELSON concur.
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JUSTICE McDONOUGH
delivered the Opinion of the Court.
Larry Marshall appeals from an order of the First Judicial District Court, Lewis and Clark County, granting the State’s motion to dismiss and denying Marshall’s motion to amend his complaint. We reverse.
The sole issue on appeal is whether the District Court erred in determining Marshall’s complaint failed to state a claim upon which relief can be granted.
On January 6,1987, the personnel officer for the State of Montana Department of Natural Resources (DNRC) requested a new position description for Marshall’s position. Marshall was employed by DNRC as a Program Officer II, grade 15. On April 21, 1987, Marshall submitted a new position description to the Water Resources Division, recommending his position be reclassified at grade 16. However, the position was reclassified to Civil Engineering Specialist IV, grade 15 by the Department of Administration (DOA) effective December 5, 1987. Marshall disagreed with the reclassification, contending that his position should be reclassified to Civil Engineering Specialist V, grade 16. Marshall initiated the formal appeals process on January 14, 1988. He received his requested upgrade on July 24, 1989.
Marshall contends that prior to formal appeal, DNRC told him that it was neither supporting or opposing his request, and DNRC led him to believe it would be objective and would not actively oppose his request. Instead, DNRC took steps with the DOA in secret to ensure that the requested upgrade would be denied. Marshall further argues the DNRC intentionally provided him with misleading information concerning certain job classification factors.
Marshall’s complaint alleged tortious breach of the implied covenant of good faith and fair dealing. Marshall’s amended complaint alleged contractual breach of the implied covenant of good faith and fair dealing. Marshall pled contract damages in the form of attorney fees in prosecuting his classification appeal and loss of back pay due to the delay in filing the appeal. Marshall contends that the filing delay was caused by the State’s bad faith during the informal process. (Section 2-18-203(3), MCA, specifically limits the amount of back pay to 30 days prior to the date the classification appeal was filed.)
In considering a Rule 12(b)(6) motion to dismiss, the allegations must be viewed in the light most favorable to the plaintiff, admitting and accepting as true all facts well-pleaded. Devoe v. Missoula County (1987), 226 Mont. 372, 374, 735 P.2d 1115; United States Nat'l Bank of Red Lodge v. DOR (1977), 175 Mont. 205, 207, 573 P.2d 188, 190. Further, a court should not dismiss a complaint for failing to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief. Proto v. Missoula County (1988), 230 Mont. 351, 353, 749 P.2d 1094, 1095, quoting Conley v. Gibson (1957), 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80, 84. Therefore, we must determine whether under any set of facts, Marshall has a claim under the covenant of good faith and fair dealing.
We said in Story that dishonesty in fact is one required element for a breach of the implied covenant of good faith and fair dealing, which results in a breach of contract:
Each party to a contract has a justified expectation that the other will act in a reasonable manner in its performance or efficient breach. When one party uses discretion conferred by the contract to act dishonestly or to act outside of accepted commercial practices to deprive the other party of the benefit of the contract, the contract is breached.
Story v. City of Bozeman (1990), 242 Mont. 436, 450, 791 P.2d 767, 775-76. Good faith under the Uniform Commercial Code means honesty in fact in the conduct or transaction concerned, § 30-1-201 (19), MCA, and the observance of reasonable commercial standards of fair dealing in the trade. Section 30-2-103(l)(b), MCA.
In the case before us, Marshall contends that DNRC acted in secret to ensure his upgrade would be denied after leading him to believe otherwise, and that they gave him misinformation. He also contends that the State’s bad faith caused him to delay filing his formal appeal resulting in loss of back pay. Accepting these contentions to be true, he has properly pled a cause of action for a contract breach of the implied covenant of good faith and fair dealing in his proposed amended complaint. However, the tort of bad faith requires a special relationship and breach of the same honesty and reasonable commercial standards. Wise v. Sebena (1991), 248 Mont 32, 38, 808 P.2d 494, 498. In Story we set forth five requirements which must be met in order to meet such special relationship. The requirements are as follows:
(1) the contract must be such that the parties are in inherently unequal bargaining positions; [and] (2) the motivation for entering the contract must be a non-profit motivation, i.e., to secure peace of mind, security, future protection; [and] (3) ordinary contract damages are not adequate because (a) they do not require the party in the superior position to account for its actions, and (b) they do not make the inferior party “whole”; [and] (4) one party is especially vulnerable because of the type of harm it may suffer and of necessity places trust in the other party to perform; and (5) the other party is aware of this vulnerability.
Story at 451, 791 P.2d at 776.
Here, under undisputed facts, the parties are not in inherently unequal bargaining positions because by statute, an appeals process was provided Marshall which resulted in his position with DNRC being upgraded. See § 2-18-203, MCA (1991). Further, ordinary contract damages are adequate because Marshall received his requested upgrade and prevailed against DNRC and DOAin the appeal. Therefore the first and third requirements are not met.
In both the initial complaint and the amended complaint, Marshall pled attorney fees and loss of back pay as his damage. Attorney fees are not allowed as damages in contract unless they are provided for in the contract or by statute. Neither provision is present here. As we said in Ehly, “It is a well-settled rule that absent contractual or statutory grant, attorney fees are not allowable as costs or as an element of damages.” Ehly v. Cady (1984), 212 Mont. 82, 100, 687 P.2d 687, 696. However, the alleged loss of back pay can be contract damages.
For the reasons set forth above, we reverse the District Court, and remand for proceedings not inconsistent with this opinion.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON, GRAY and WEBER concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the. Opinion of the Court.
The appellant-plaintiff, Pierre Longpre, brought this action in the district court of the fourth judicial district against Joint School District No. 2, to recover damages for injuries allegedly suffered in a school bus accident which occurred in November 1961. Longpre was a passenger in the school bus which was owned and operated by the respondent-defendant school district. The defendant pleaded governmental immunity, and the district court grante dsummary judgment in its favor.
The issue before this Court is whether the Legislature, by enacting section 75-3406, R.C.M.1947, waived governmental immunity to the extent it required school districts to purchase insurance.
Section 75-3406, as amended, so far as pertinent here, reads:
“Requirements as to buses, drivers and operation of school buses. Any person or persons having a contract to transport school children, or any school district owning and operating its own school buses, shall comply in every respect with the regulations of the state board of education for the operation and safety of school buses; provided, that, the board of trustees may require added safeguards, by supplementing in the contract the regulations of the state board of education, with additional regulations relating to bus specifications, age of drivers, liability insurance and operating speed; provided, that a district, owning and operating its own bus or buses, must carry automobile bodily injury and liability insurance, with limits of liability in the amount of not less than $7,500.00 each person and $50,000.00 each accident. Such limits must be carried on each bus operated, if there be more than one * * (Emphasis ours)
The provisions of this section as to insurance were complied with by the school district.
Turning to the issue, the general rule, as defendant contends, has been that school districts, because they are governmental units, are not liable for injuries caused by their officers, agents or employees when acting in a governmental capacity, unless liability is imposed by statute, even though the activity with which the negligence is connected is optional with the school district. Perkins v. Trask, 95 Mont. 1, 23 P.2d 982 (1933); Bartell v. School District No. 28, Lake County, 114 Mont. 451, 137 P.2d 422 (1943); Rhoades v. School District No. 9, Roosevelt County, 115 Mont. 352, 142 P.2d 890, 160 A.L.R. 1 (1943). Also the furnishing of free transportation to and from school to public school children generally has been considered to be a governmental function, and in the absence of a legislative enactment imposing liability, it is the general rule that the agency furnishing the transportation is immune from tort liability for personal injuries or deaths sustained in connection with the operaton of the transportation system. Anno., 160 A.L.R. 7, p. 197; Wilson v. Maury County Board of Education, 42 Tenn.App. 315, 302 S.W.2d 502 (1957).
A number of reasons have been given for the theory of governmental immunity of school districts while performing governmental functions, but the foremost one seems to be that the state is immune for tort liability because of its sovereign character. And, generally speaking, all public agencies, institutions or political subdivisions of the state partake of this sovereign immunity, at least while performing governmental functions, since, while so engaged, they merely act for the benefit of the state and of the public generally. For additional reasons see: Anno., 160 A.L.R. 7, pp. 54, 62 to 81.
It is also the general rule in the majority of states that voluntary procurement of liability insurance' by governmental subdivision does not waive that unit’s immunity from suit because, as it is generally stated, the power to waive such immunity lies with the legislature of each state, not with a department or department head. Holland v. Western Airlines, Inc., 154 F. Supp. 457, 460 (D.C.1967); Taylor v. State, 73 Nev. 151, 311 P.2d 733 (1957); Wallace v. Laurel County Board of Education, 287 Ky. 454, 153 S.W.2d 915 (1941) ; Kesman v. School Dist. of Fallowfield Tp. 345 Pa. 457, 29 A.2d 17 (1942); 68 A.L.R.2d 1445.
There are at least three lines of authority on the effect of a legislative enactment authorizing a governmental unit to purchase liability insurance. One line of authority holds that there is a continuation of immunity notwithstanding the authorization. Ware County v. Cason, 61 Ga.App. 15, 5 S.E.2d 597 (1939); Livingston v. Regents of New Mexico College of A. & M. A., 64 N.M. 306, 328 P.2d 78 (1958); Stephenson v. City of Raleigh, 232 N.C. 42, 59 S.E.2d 195 (1950).
Another line of authority holds that the fact that a governmental subdivision, in procuring insurance against tort liability, acted in pursuance of statutory authorization, does not require the conclusion that the unit’s immunity from liability has been abrogated in whole or in part so long as the authorizing statute contains no express waiver. Hummer v. School City of Hartford City, 124 Ind. App. 30, 112 N.E.2d 891 (1953); Pigg v. Brockman, 79 Idaho 233, 314 P.2d 609 (1957); Rittmiller v. School Dist. 84, 104 F. Supp. 187 (D.C.1952); McGrath Building Company v. City of Bettendorf, 248 Iowa 1386, 85 N.W.2d 616, 68 A.L.R. 2d 1429 (1957).
A third and expanding line of authority holds that to the extent liability insurance protects a governmental unit against tort liability, the otherwise existing immunity of that unit is removed. The rule of removal of immunity to the extent of insurance carried has been applied where there was statutory author ization to purchase such insurance, (Wilson v. Maury County Board of Education, 42 Tenn. App. 315, 302 S.W.2d 502 (1957); Molitor v. Kaneland Community Unit District No. 302, 18 Ill.2d 11, 163 N.E.2d 89, 86 A.L.R.2d 469 (1959); Vendrell v. School District No. 26C, Malheur County, 226 Or. 263, 360 P.2d 282 (1961), and it has also been applied where there was no authorization to purchase liability insurance. City of Kingsport v. Lane, 35 Tenn.App. 183, 243 S.W.2d 289 (1951); Taylor v. Cobble, 28 Tenn.App. 167, 187 S.W.2d 648 (1945); Rogers v. Butler, 170 Tenn. 125, 92 S.W.2d 414 (1936). A number of states have held to this rule for some time. Anno., 68 A.L.R.2d 1437, p. 1448 (1957).
At least two other jurisdictions have recently followed this trend. In Vendrell v. School District No. 26C, Malheur County, 226 Or. 263, 360 P.2d 282 (1961), an Oregon statute authorized school districts to carry insurance for public liability and property damage covering motor vehicles operated by the district. The Oregon court there said that a district’s immunity was lifted only to the extent it is authorized to purchase and in fact has obtained insurance covering the activity or activities in question.
In Maffei v. Incorporated Town of Kemmerer, 80 Wyo. 33, 338 P.2d 808 (1959), the Wyoming Supreme Court recognized the rule that voluntary procurement of liability insurance by the town did not waive its immunity from suit, but then went on to say: “The logical conclusion, therefore, is not that the acts mentioned give recognition that governmental elements are not possessed of immunity from tort action, but rather that they do have immunity which the legislature has seen fit to waive to the extent of subjecting them to a liability limited to moneys made available from insurance.”
In the instant case this Court is faced with a situation dissimilar from any it has encountered in its searches. In all the cases found the statutes therein were of a permissive nature; that is, the governmental units were authorized to purchase liability in surance. However, the Montana statute, section 75-3406, R.C.M. 1947, is worded in mandatory language; it provides that ‘ ‘ [A] district, owning and operating its own bus or buses, must carry automobile bodily injury and liability insurance, with limits of' liability in the amount of not less than $7,500.00 each person and $50,000.00 each accident.” (Emphasis ours)
Upon looking at the original title of what is now Title 75,. Chapter 34, of the Revised Codes of Montana, 1947, it is found that the original act was entitled: “An Act Providing ‘Transportation’ Services for All Public School Pupils * * *” Laws of Montana, 1941, Ch. 152, p. 281. This would seem to indicate the act was meant to cover all aspects of transportation, of public school pupils.
Title 75, Chapter 34, must also be read in its entirety. The whole tenor of Title 75, Chapter 34, is that it was meant to cover transportation of school pupils, which is an admitted governmental function, and not cover possible proprietary functions.
We hold that section 75-3406, R.C.M. 1947, waived immunity to the extent of insurance required to be carried or actually carried. This holding is reinforced by an act passed by the Fortieth Legislature Assembly in 1967. Chapter 58, Laws of Montana 1967, pp. 110, 111, authorizes school districts and certain other governmental subdivisions to purchase liability insurance for protection against liability for death, injury or disability of any person or damage to property. Such insurance is to cover the school district, school officials and employees.
It would appear that Chapter 58 was meant to allow school districts to protect themselves from liability for injuries arising out of facts other than operation of school buses. However, that may be, it seems clear to this Court that the Twenty-seventh Legislative Assembly, by enacting what is now section 75-3406, R.C.M.1947, meant to require school districts to carry liability insurance to cover injuries and property damage that. might arise in connection with the operation and maintenance ■of school buses by the district.
Since it is clear that the liability insurance, which section 75-3406, R.C.M.1947, requires school districts to carry, was meant to cover injuries arising from the operation of school buses, this Court fails to see how it can be argued that the .Legislature would require insurance to be carried and then ■deny any means of recovery to an individual injured in connection with the operation of a school bus. We de not think that the Legislature would, on one side, require school districts to purchase liability insurance, and then on the other side, deny .any means of recovery to one injured, otherwise the Legislature would simply have meant to enrich insurance companies. This cannot be.
In Perkins v. Trask, supra, this Court recognized that there might be a waiver by implication and all the 1941 Legislative -Assembly had to do was provide for waiver by implication. This, we think, that Assembly did when it enacted originally what is now sections 75-3406, R.C.M.1947.
Respondent argues that section 75-3406 did not abrogate the school district’s governmental immunity, but that such immunity was abrogated by section 40-4402, R.C.M. 1947, enacted after the accident in question here. We must bear in mind, however, that section 75-3406 was also enacted in light of the Perkins case which recognized that there may be a waiver by implication. This Court feels that by enacting section 75-3406, R.C.M.1947, the Legislative Assembly meant to waive immunity to the extent of insurance required to be carried.
On the other hand, it must be remembered that section 40-4402, R.C.M.1947, was enacted as an amendment to the insurance code, not as an amendment to the school code, and it was enacted some twenty-two years later. It is beyond the power of this Court to speculate on what the 1963 Legislative Assembly thought it was doing when it enacted section 40-4402, R.C. M.1947, as an amendment to the insurance code because it is clear to us that the governmental immunity of school districts had already been partially waived.
In the present ease we hold that the Twenty-seventh Legislative Assembly by requiring school districts to carry liability insurance, waived only to the extent of insurance required or actually carried, the school district’s immunity from suit.
The judgment is reversed and the cause remanded to the district court for further proceedings not inconsistent with this opinion.
MR. JUSTICES HASWELL, ADAIR, JOHN CONWAY HARRISON and CASTLES, concur.
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