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MR. CHIEF JUSTICE HARRISON:
This is an original proceeding seeking a writ of prohibition.
On August 5, 1960, relator filed in this court his petition which was heard ex parte on that date and an alternative writ was issued. From the petition it appeared that relator was divorced on January 17, 1956, and pursuant to an ag*reement entered into between the parties to that action the wife was to receive the family home, the sum of $100 per month for the care of the two minor children of the parties, and the care and custody of the children. Thereafter, upon application of the relator on September 12, 1958, an order was made by the district court modifying the decree of divorce to provide that the father relator should have the custody of the children one week during the Christmas holidays and during two periods of the summer school vacation. On June 30, 1960, the former wife of relator petitioned the court to modify the decree and a hearing was thereafter held. On July 28, 1960, an order was entered by the court setting aside the modifications of the divorce decree contained in the order of September 12, 1958, and restoring the original decree of January 17, 1956, in full force and effect.
It further appeared from the petition that during 1959 while the children were in the custody of relator during the summer vacation period they were obtained by the mother and not returned until the court sent the sheriff to get the children. In the year 1960 summer vacation period the mother requested relator to delay the commenceinent of his period of custody for ten days which he did. The petition for modification was then filed by the mother as before related. The second period of custody during the summer vacation under the modification order was to commence on August 1 and terminate on August 15. It was represented to the court that relator desired to take his children on a vacation trip and since his visitation period would expire on August 15 this court issued the alternative writ and provided for the immediate delivery of the children to the relator, since, if the court were to fix a reasonable return day, the period of visitation would have expired before the matter could be heard.
Upon the return day respondent filed a motion to quash.
It appears that relator seeks to have this court determine questions of fact without presenting a record of the proceedings had in the court below. This we may not do.
The motion to quash is granted and the writ discharged.
MR. JUSTICES BOTTOMLY, ADAIR and CASTLES concur.
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The Honorable WILLIAM M. BLACK, District Judge
sitting in place of MR. JUSTICE ANGSTMAN, delivered the Opinion of the Court.
This is an appeal from a judgment made and entered on the 8th day of May 1959, in favor of the plaintiffs and against the defendant in the district court, and also from the order denying the defendant’s motion for a new trial.
The plaintiffs filed their complaint in trespass on June 17, 1957, alleging damages in the amount of $1,200. After the demurrer was overruled, the defendant filed its answer denying the general allegations in the complaint and with a further and affirmative defense alleging the’ propriety of any trespass, if there was one, and denying that it ever had received written notice demanding damages for such trespass.
Thereafter plaintiffs filed a reply. Issue being joined the action came on for trial before a jury in Lewis and Clark County, Montana, which rendered a verdict for the plaintiffs.
The plaintiffs and respondents herein, Ray Ward, Lawrence Ward, Charles Ward, and Lester Thompson, were the owners of nine unpatented mining claims located in Powell County, Montana, not far from Elliston, in the unorganized Little Blackfoot Mining District. These claims were principally in two groups known as the Hoosier Group and the Hard Luck Group. The plaintiffs had two small cabins on the Hoosier Group, and three small cabins on the Hard Luck Group. All of these cabins were one-room cabins, and were utilized by the plaintiffs and their families when they were in the area working their mines. The defendant and appellant herein owned several bands of sheep which it grazed in that area during the summer months. During the summer of 1956, the plaintiffs charged that defendant, the owner of the sheep, had caused damages to the plaintiffs’ mining claims, and alleged that the sheep grazed on the claims and had damaged the roads running to the various claims, and also that the sheep damaged and polluted the water in a spring which was located close to one of the cabins and that the sheep while in that locality dropped their manure and urine near the cabins and in the spring, and caused a stench and offensive odor to arise therefrom, so that the cabins could not be used to live in thereafter, and that the spring could not be used until it was cleaned out.
Plaintiffs alleged they suffered damages in the amount of $1,200.
The record indicates that most of the roads were Forest Service or public roads; that the only private road that had been built was built on the basis of a Forest Service permit. The defendant alleged that no damage was done to any property belonging to plaintiffs.
The defendant, Chevallier Ranch Company, is a sheep ranching company with its base of operations in Lewis and Clark County. In the summer of 1956, it had a permit from the U. S. Forest Service to run sheep on Helena National Forest lands in the upper reaches of the Little Blackfoot River wherein the mining claims of the plaintiffs were located. Their allotment included approximately twenty-seven sections of land in that national forest.
Plaintiffs’ evidence clearly indicates that all of their mining claims were definitely marked and the corners definitely located on all of the claims.
Plaintiffs offered in evidence Exhibits 1 to 9, inclusive, which were received in evidence without objection. These exhibits were Certificates of Location of the plaintiffs’ various mining claims.
The only testimony from the defendant was the testimony of Phil Chevallier to the effect that he did not see any markers or corners or monuments indicating boundaries of the claims, and on cross-examination he testified further that he did not look for any boundary markers. Garth Stafford, a sheepherder for defendant, testified that he did not see any such markers. This testimony is what is known as negative testimony and is in conflict with positive testimony of the plaintiffs. The exhibits above-mentioned are positive testimony to the effect that the corners were properly marked and the boundaries thus defined and established.
The testimony of Eric P. White, who was District Ranger of the Helena National Forest in 1956, as to the damages caused by the sheep trespassing is fair and impartial. He testified as to conditions around the mining cabins as follows:
“Q. What did you see with reference to the conditions at that time? A. Well, what I saw didn’t make me feel very good because it seemed that sheep had been allowed to bed close to the mining cabins where I told him to stay away from. As a matter of fact, the time spent there seemed to be quite a long time; we have a rule, one night to a bed ground, but they were there longer than one night, I know that. ’ ’
The questions at issue are:
(1) Were the boundaries and corners of the land involved herein marked and designated in such manner as to notify the public as to the location of plaintiffs’ claims?
(2) Was a trespass committed on the mining claims bjr defendant’s sheep, which trespass interfered with the plaintiffs’ mining operations and damaged their property?
By its instruction No. 14, the court stated the law of the case . with respect to owners of unpatented mining elaims in these words: “You are instructed that the owners of unpatented mining elaims are entitled to the possession and use of so much of the surface of the claim as is necessary for the conduct of his mining operations only, and that all persons cannot interfere with such possession and use, and if others do so interfere with the possession and use necessary for the mining operations, then such persons are responsible in damages for such interference. ’ ’
The question presented to the jury for its determination ivas whether or not the boundaries of the land here involved were marked as required. The jury determined such issue in favor of the respondents as evidenced by their verdict.
The district court further instructed the jury in the language used in section 46-1413, R.C.M. 1947, in its instruction No. 13.
Appellant asserts that by reason of the provisions of this statute respondents may not recover other than nominal damages because no written notice demanding a sum certain for damages by reason of the trespass was ever given to it by respondents. This section is clear and unambiguous and provides that “No person owning or possessing agricultural or grazing-land, or patented mining elaims” can recover other than nominal damages without giving written notice. The claims here were unpatented mining claims so the provisions of the statute were inapplicable.
The evidence given at the trial of this action in the lower court conclusively proves that the boundaries of the land involved herein were marked and the corners established.
The proof Avas sufficient to warrant the verdict. The amount of damages fixed by the verdict of the jury, at the sum of $700, does not appear excessive. This court will not disturb the award, unless its determination appears to have been in flnenced by passion, prejudice, or some improper motive, or unless the amount is outrageously disproportionate to the wrong, or to the situation or circumstances of the parties.
The verdict is not contrary to the instructions of the court.
Having considered all of the specifications of error assigned by appellant, we find no merit in the same.
For the foregoing reasons the judgment of the district court is affirmed.
MR. CHIEF JUSTICE HARRISON, MR. JUSTICE CASTLES, and THE HONORABLE H. B. HOFFMAN, District Judge, sitting in place of MR. JUSTICE BOTTOMLY, concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Action commenced by wife seeking dissolution of marriage and a property division. Petitioner filed in the District Court of the Thirteenth Judicial District in and for the County of Yellowstone. Findings of fact and conclusions of law were entered April 22, 1981, followed by judgment. Ap peal followed directed specifically to the disposition of couple’s property.
The parties to this action were married in 1936. For the 43-year duration of their marriage they farmed and ranched at various locations in south-central Montana. Respondent (hereinafter Jake) has a second grade education. Appellant (hereinafter Dorothea) was graduated from high school. Due to the parties’ wide difference in educations, Dorothea handled the management and finances of the operations while Jake concentrated on the day-to-day functions. The record shows both Jake and Dorothea were hard workers and attempted to make the best of their debt-ridden business.
At the time appellant filed her petition for dissolution of marriage, and parties were farming and ranching north of Hardin, Montana, on 160 acres known as the home place which they purchased from Dorothea’s father. Later, another 117 acres were purchased with the help of their son, Robert Schultz, known as the Orser Place. The parties improved and equipped the home place by borrowing substantial amounts of money from the FHA and the PCA. In addition they used funds which Dorothea received in a personal injury settlement and from money inherited from her uncle.
The parties accumulated a herd of cattle on the ranch which included four separate brands:
1. Bar D Lazy K, registered to Dorothea Schultz;
2. Lazy DJ Bar, registered to Jacob and Dorothea Schultz;
3. Bar CB, registered to Patricia Thomas;
4. Slash CC, registered to Robert and Dorothea Schultz.
The ownership of those four brands is disputed. The Bar D Lazy K brand was first established in 1950 by Dorothea Schultz. In 1971, Dorothea transferred the brand to a joint brand with Jake upon request by the FHA to qualify for a loan. When the loan was released Jake assigned his interest back to Dorothea. The Lazy DJ Bar is jointly owned by Dorothea and Jake without dispute. The cattle branded Bar CB were purchased in 1961 by Dorothea and then sold to the daughter Patricia Thomas. Since then the brand has always been registered in the daughter’s name. When the brand Bar CB cows were calved-out through the years, some of the calves were sold and the proceeds used by Jake and Dorothea in their operations. The cattle branded Slash CC were purchased by Dorothea in 1975. Dorothea obtained a loan from the Little Horn Bank to pay for the cattle. When she couldn’t repay the loan, the son, Robert Schultz, repaid the bank and Dorothea gave him a bill of sale for the cattle. The cattle were branded Slash CC and the brand was registered in the names of Robert and Dorothea Schultz.
In the District Court’s findings of fact and conclusions of law the court found the total net worth of the parties to be between $94,116.51 and $153,599.51. The difference in amount is due to different appraisals of the real estate and cattle. The District Court’s finding is as follows:
ASSETS RECAP
Real Property $242,375.00 to $276,060.00
Less sale of 59% interest - 59,000.00 - 59,000.00
Machinery 19,100.00 to 31,750.00
Crops 5,000.00 to 7,908.00
Livestock
CB Brand 15,730.00 to 15,800.00
Brand -D 38,730.00 to 45,300.00
Brand /CC 9,450.00 to 10,900.00
Brand J 16,500.00 to 18,650.00
Check 8,729.33 to 8,729.33
Sub-Total 355,614.33 to 415,097.33
Less $59,000.00, sale of 59% interest - 59,000.00 59,000.00
TOTAL ASSETS $296,614.33 to $356,097.33
LIABILITIES RECAP
FHA $180,030.17
Little Horn State Bank 14,722.65
Miscellaneous 7,745.00
TOTAL LIABILITIES $202,497.82
NET WORTH OF PARTIES TOGETHER
Assets $296,614.33 to $356,097.33
Liabilities 202,497.82 202,497.82
TOTAL $ 94,116.51 $153,599.51
In the judgment the District Court ordered:
“. . .that the property of the marital estate, both real and personal, including CB and /CC brand cattle shall be sold, and after payment of all indebtedness herein the net proceeds shall be divided between the parties except petitioner is entitled to be paid $25,000 over and above respondent’s share . . .
“Sale of property set forth in the previous paragraph shall be accomplished by mutual agreement of the parties presented to this Court. If no agreement is reached, the court shall set the guidelines for the sale. The court would ratify an agreement allowing the petitioner’s to retain the ‘home place’ if the parties can do so, giving respondent his portion of the martial estate.”
From this judgment petitioner appeals.
The issues presented for review are:
1. Whether the court had jurisdiction to include within the marital estate and to divide and order sold the cattle owned by and branded in the names of the adult children, Robert Schultz and Patricia Thomas.
2. Whether the court abused its discretion and acted contrary to the evidence when it included with the marital estate the cattle with the wife’s separate and personal brand, Bar D Lazy K.
3. Whether the court abused its discretion in failing to give the wife the right to purchase the home ranch before subjecting it to forced litigation.
Appellant argues the District Court erred by including the brands Slash CC and Bar CB, registered in the children’s names, into the marital estate. There is no dispute that the brand, CB is registered in the name of the daughter, Patricia Thomas, or that the brand, Slash CC is registered in the names of the son, Robert Schultz, and Dorothea Schultz.
Appellant cites section 81-3-105, MCA:
“A person, firm or corporation in whose name a mark or brand is recorded is entitled to the exclusive use of the mark or brand on the species of animal and in the position designated in the record. A copy of the record certified by the department is prima facie evidence of this right, and the certificate is also prima facie evidence that the person, firm or corporation entitled to use the mark or brand is the owner of all animals on which it appears in the position and on the species of animal stated in the certificate. (Emphasis supplied.)
This section was originally enacted as Section 5, Ch. 144 Laws of Montana (1921), codified as Section 3305, R.C.M. 1921. The language has remained unchanged since its enactment. In the case of State v. Keays (1934), 97 Mont. 404, 34 P.2d 855, this Court cited the section and stated: “Defendant argues that the certificates mentioned in the above section were the best evidence or ownership, and that it was error to admit the oral testimony of Rafesty upon this question. It is true that the certificates specified by the statutes would have been the best evidence. The admission of the oral testimony in the place of such certificates did constitute at least a technical error.” This being a criminal case, the Court found other grounds upon which we could reverse. However, the rule that the certificate is the best evidence of ownership has never been overruled.
That does not mean that the presumption of ownership cannot be rebutted. In Bohart v. Songer et. al. (1940), 110 Mont. 405, 101 P.2d 64, we stated: “[n]ow the recorded brand establishes prima facie proof of ownership on which such brand appears. Of course, the prima facie evidence of ownership can be overcome by satisfactory evidence of transfer or relinquishment of a particular animal.” In the present case there was no evidence of transfer or relinquishment of the disputed brands. The brands have always been in the children’s names and thus the children are presumed the owners.
Respondent now claims he has an “interest” in the disputed brands because he fed and watered the cattle and took care of them on his land. He cites no authority which substantiates this claim of ownership. Respondent acknowledged that the children were the registered owners of the brands and never contested their ownership until the dissolution proceeding. The record shows the parents sold calves from the daughter’s brand, Bar CB, and the proceeds were used in the operation of the ranch. The record does not show that the daughter was repaid for these calves. Respondent cannot argue he watered, fed and pastured the children’s cattle without compensation as it seems the parents’ use of the proceeds from the daughter’s calf sales provided equitable payment. We find no merit in respondent’s contentions.
Appellant next argues the District Court abused its discretion when it included the wife’s personal brand of cattle with the marital estate. The standard for reviewing the property division in a dissolution decreed by a District court is well settled in Montana. The apportionment made by the District Court will not be disturbed on review unless there has been a clear abuse of discretion as manifested by a substantially inequitable division of the marital assets resulting in substantial injustice. In Re Marriage of Brown (1978), 179 Mont. 417, 587 P.2d 361, 364; In Re Marriage of Blair (1978), 178 Mont. 220, 583 P.2d 403, 405; Vivian v. Vivian (1978), 178 Mont. 341, 583 P.2d 1072, 1074. The duty of the District Court is to consider the statutory crite ria and equitably apportion the marital assets. Each case must be looked at individually with an eye to its unique circumstances. In Re Marriage of Jacobson (1979), Mont., 600 P.2d 1183, 1186, 35 St.Rep. 1773, 1776; Aanenson v. Aanenson (1979), Mont., 598 P.2d 1120, 36 St.Rep. 1525, 1528.
Section 40-4-202, MCA, states:
“In a proceeding for dissolution of a 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 title thereto is in the name of the husband or wife or both. In making apportionment, the court shall consider the duration of the marriage and [other factors] . . . 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 unit.” (Emphasis added.)
This section makes it clear that the source of and title to marital property is irrelevant as to the division of such property upon dissolution of marriage. In Re Marriage of Brown, supra. The statute specifically states the District Court must equitably apportion the assets no matter in whose name lies title or for what source acquired. The section is not ambiguous. When we apply section 40-4-202, MCA, the relevant case law to the District Court’s ruling we find no abuse of discretion but rather a correct interpretation of the law.
Appellant argues section 40-2-201, MCA, supports the wife’s claim of ownership to her brand of cattle, the Bar D Lazy K. This section states, “Neither husband nor wife has any interest in the property of the other, except as mentioned in section 40-2-102, but neither can be excluded from the other’s dwelling unless enjoined by a court.” Section 40-2-201, MCA, does not apply in a proceeding for disposition of property.
Appellant claims that respondent had no interest in her personal brand of cattle and so expressed in a bill of sale of which purported to relinquish his interest in virtually all of the marital estate. Section 40-4-202, MCA, calls for an equitable division of the marital estate by the court, regardless of however or whenever acquired or in whose name the property is held. In Re Marriage of Houtchens (1979), Mont., 592 P.2d 158, 160, 36 St.Rep. 501, 503. Whether or not a particular brand of cattle was registered in the wife’s name or whether there was a questionable bill of sale which passed all of the husband’s personal property to the wife has no bearing on the division of property mandate of section 40-4-202, MCA. Aside from the inclusion of the children’s cattle in the marital estate we find no abuse of discretion by the District Court in its property division.
Finally, appellant argues the District Court abused its discretion by failing to give her the right to purchase the home ranch before subjecting it to forced litigation. Paragraph 5 of the District Court’s judgment reads as follows:
“5. Sale of property set forth in the previous paragraph shall be accomplished by mutual agreement of the parties presented to this court. If no agreement is reached, the court shall set the guidelines for the sale. The court would ratify an agreement allowing Petitioner to retain the ‘home plan’ if parties can do so, giving respondent his portion of the marital estate.
It does not appear that forced sale of the ranch was the only alternative as the appellant claims. The District Court clearly allowed the parties room to negotiate a buy-out on their own terms. It seems the parties would have an interest in negotiating their own terms as they are in a better position to know what they can afford and what they feel their interest is worth. Their incentive should be to avoid a forced sale which might not be as fruitful as a sale from one party to the other. Here forced sale was not ordered unless the parties could not reach an agreement. We find no error in the District Court’s ruling.
For the above reasons, we remand the case to the District Court to modify the property division by excluding the chil dren’s cattle from the marital estate.
MR. CHIEF JUSTICE HASWELL and JUSTICES SHEA, MORRISON and SHEEHY concur.
|
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MR. JUSTICE ANGSTMAN
delivered the Opinion of the Court.
This is an appeal by defendant from a judgment rendered on a jury verdict in favor of plaintiff. The action was for recovery of $5,000 under double indemnity provisions of an insurance policy, the face amount of the policy having been paid.
Plaintiff is the widow of Charles Milton Terry, the insured.
The complaint sought recovery for accidental death under terms of the policy.
The death of the insured occurred as a result of a “fist fight” or altercation between one Meyers and the insured after first engaging in a short verbal argument. The fight arose during a card game. The two were about the same size and weight. The blows were struck by Meyers with the fist. No weapon, as such, was used, although chairs and pieces of wood were available. There were only three or four blows struck and these at very close range. The fight lasted only a matter of seconds. The deceased collapsed to the floor as if he had deliberately withdrawn from the fight at which time Meyers completely withdrew. Meyers and others in the room were unaware of any serious injuries and immediately left the room and “cashed in” their chips. Meyers then went home. A short time later one of the witnesses to the altercation went back into the card room to check on Terry and found him hurt. He called for help, artificial respiration was applied but he was dead within minutes. The injury received was visible and was the cause of death. There is no question as to the cause of death being violent and external.
The policy contained these provisions:
“Accidental Death Benefit
“The Company agrees, subject to the following conditions and provisions, to pay ($5,000.00) Five Thousand and 00/100 Dollars in addition to the amount payable under the principal contract, to the Beneficiary or Beneficiaries named therein, if this Policy is in full force with all premiums hereon duly paid; upon receipt by the Company at its Home Office of due proof that death resulted directly and independently of all other causes from bodily injury effected solely through external, violent, and accidental means, of which, except in case of drowning or internal injuries revealed by autopsy, there is a visible contusion or wound on the exterior of the body, and that such death occurred within ninety days after sustaining such injury. The Company shall have the right and opportunity to examine the body and to make autopsy unless prohibited by law.
‘ ‘ General Provisions
“ (a) This benefit does not cover death caused or contributed to directly or indirectly, wholly or partly, by: disease or bodily or mental infirmity or medical or surgical treatment thereof; infection of any nature unless such infection is incurred through an external visible wound sustained through violent and accidental means; poisoning-, inhalation whether voluntary or involuntary of gas or fumes from an internal combustion motor; self destruction whether sane or insane; injury intentionally inflicted by another person; any act of war; a state of insurrection; participating in a riot, or travel or flight in or descent or falling from or with any species of aircraft except while a fare-paying passenger of a commercial airline flying on a regularly scheduled route between definitely established airports.”
There are only two legal questions presented upon this appeal. They are (1) whether under the foregoing policy terms, the death of the insured was “accidental”, and (2) whether the death was caused or contributed to directly or indirectly, wholly or partly, by “injuries intentionally inflicted” by Meyers within the foregoing exclusion clause of the policy.
The beneficiary’s theory of the case was that a death resulting from a fist fight, prompted by a trivial social cause, in which only the use of fists was contemplated and used, was a death resulting by accidental means, within the policy, even though the insured willingly engaged in it and even provoked the fight. Further, that the injuries received, resulting in death, were not injuries intentionally inflicted within the policy exclusion, where there was no evidence of intent to inflict injuries of such breadth and magnitude as those actually inflicted.
The trial court followed this theory in instructing the jury. The jury found a special verdict as follows:
“Do you find from a preponderance of the evidence that Bruce Meyers intentionally delivered blows against Charles Milton Terry, and that in so doing Bruce Meyers or another person similarly situated could or should have believed or known that such blows might in the natural and probable course of events result in the injuries sustained by Charles Milton Terry?” Answer “No.”
The Insurance Company, on the other hand, urged the theory that an ultimate result of a fist fight, occurring by ordinary means though unexpected and''unintended, is foreseeable and not an accident, where the act or the means preceding and producing the result was violent, voluntary and intentionally committed. And further that even if it be termed an accident that under the facts of this case the death was caused or contributed to, directly or indirectly, wholly or partly, by injuries intentionally inflicted by Meyers under tbe terms of the policy and thus excluded.
The Insurance Company, by demurrer, motion for judgment on the pleading’s, motion for nonsuit and objections to instructions, adhered to the foregoing theory.
As to whether the death was “accidental” within the terms of the policy, we think the analysis is well put in 26 A.L.R.2d 399, 402, 403, 427, where the author states:
“While general language used in some of the decisions might be taken to indicate the adoption of a harsher rule, the consensus of the cases seems to be that the mere fact that a person insured against accidental injury or death voluntarily and wrongfully assaulted another will not be sufficient to characterize as nonaccidental all possible injuries which he receives in the course of or as a consequence of his attack, but that such injuries may be regarded as accidental unless they were a natural or probable result of the insured’s actions, reasonably foreseeable by him or by a reasonably prudent man in his position.
“The at least superficially inconsistent results reached in many of the cases are explainable, not on the basis of any disagreement as to the general terms of the rule stated, but on the court’s varying ideas as to the degree of foresight which should be exacted from the insured. Some of the cases, especially the earlier ones, apparently take the view that whenever personal violence is offered by one person to another, almost any degree of violence can reasonably be expected in return, while other decisions have adopted the view that the insured may reasonably suppose that the resistance of the person attacked will be in some degree adjusted to the nature of the offense offered, and that the attacker is not bound to expect that extreme results will follow from merely trivial provocation.
“If actual foreseeability is to be the test, it would seem that the issue is one of fact, to be answered in the light of the cir cumstanees of the individual case, and such seems to be the view taken in most of the recent cases. * * *
“Where neither of the combatants is armed, and the attack made by the insured contemplates only an ordinary fist fight or personal combat, there is much more room for argument as to whether the insured should be charged with the necessary anticipation of possibly fatal results. While several of the earlier cases took the attitude that fatal results were a natural and probable consequence of such an assault, in the more recent eases it appears that in such a situation a question for the jury as to whether the fatal injury was a reasonably foreseeable consequence is, at most, presented.”
And on page 427, § 6 of 26 A.L.R.2d, it is said:
“Where, in initiating an altercation, the insured contemplated only an encounter carried on with nature’s weapons, and there was nothing to indicate that the person attacked would do more than retaliate in kind, and, in fact, no other retaliation was made, but the insured was nevertheless fatally injured, it has frequently been held that the death might be found to be accidental or the result of accidental means, on the ground that a fatal result is not a usual or foreseeable result of such a purely personal encounter. ’ ’ Emphasis supplied.
The case law in Montana is in accord with the views expressed in the foregoing statements from 26 A.L.R.2d.
In Lewis v. New York Life Ins. Co., 113 Mont. 151, 160, 161, 124 P.2d 579, 583, this court said : “We cannot, for example, as a matter of law say that the insured might not have intentionally pulled the trigger without realizing that the gun was loaded and without any intention to commit suicide. * * *
“Some argument is made by council for the defendant that in such situation the discharge of the gun would not be accidental. That contention finds no support in reason nor in law. While the act of pulling the trigger might have been intentional, the result in such a situation would be entirely unforeseen and unexpected, as is the situation in the hundreds of cases occurring every year in which firearms, due to careless handling, are discharged resulting in the accidental death and injury of many persons. Strange and wonderful indeed are the circumstances in which persons are killed or injured by the intentional pulling of the trigger of an 'unloaded’ gun, and it is clear that in such situations the discharge itself and the resulting injuries are accidental. See Tuttle v. Pacific Mutual Life Ins. Co., supra [58 Mont. 121, 190 P. 993, 16 A.L.R. 601]; Dalbey v. Equitable Life Assur. Soc., 105 Mont. 587, 74 P.2d 432; Wills v. Midland Nat. Life Ins. Co., 108 Mont. 536, 91 P.2d 695.”
The Lewis case demonstrates, in accord with what appears to be the weight of authority, that an accidental result may follow an intentional act and be regarded as caused by accidental means.
We hold then, that the issue of “accidental means” under the terms of the policy was a jury question.
The second question is whether liability is excluded because of that part of the exclusion clause previously set out in full which reads:
“This benefit [double indemnity] does not cover death caused or contributed to directly or indirectly, wholly or partly, by: * * * injury intentionally inflicted by another person.”
The only statement made by Meyers leading up to the assault, and from which any intention could be drawn, was that Terry had better shut up or he, Meyers, would “put him in a corner.” There was no expression of an intention to inflict injuries. There was no indication to Mej’urs, or any of the bystanders that Terry had received any injuries when he went to the floor. To everyone present it was as if he had dropped to the floor to avoid further conflict.
We keep in mind that in construing an exclusion policy, in case of uncertainty, every doubt should be resolved in favor of the insured, and the policy should be construed strictly against the insurer company. Montana Auto Finance Corp. v. British etc., Underwriters, 72 Mont. 69, 232 P. 198, 36 A.L.R. 1495. Otherwise stated a contract of insurance will be construed strictly against the insurer and liberally in favor of the insured. Libby Lumber Co. v. Pacific States Fire Ins. Co., 79 Mont. 166, 255 P. 340, 60 A.L.R. 1; Park Saddle Horse Co. v. Royal Indemnity Co., 81 Mont. 99, 261 P. 880; Fayle v. Camden Fire Ins. Ass’n, 85 Mont. 248, 278 P. 509; Cacic v. Slovenska Narodna, etc., 102 Mont. 438, 59 P.2d 910.
Likewise, we keep in mind that the burden of proof in establishing that the injuries resulting in, or contributing to, death were intentionally inflicted within the meaning of an exclusion clause, such as we have here, is on the insurer. Note in 56 A.L.R. 696. The presumption is that such injuries were not intentionally inflicted. Olson v. Southern Surety Co., 201 Iowa 1334, 208 N.W. 213; Stevens v. Continental Casualty Co., 12 N.D. 463, 97 N.W. 862.
In 1 Appleman, Insurance Law & Practice, § 483, p. 592, it is said:
“Under principles of liberal construction, the courts, have in many instances, held that if the assailant did not intend to cause death, particularly where the injury was such as ordinarily would not cause death, even though the assailant intentionally caused injury to the insured, recovery would not be denied.”
The court in Jefferson Standard Life Ins. Co. v. Myers, 256 Ky. 174, 180, 75 S.W.2d 1095, 1098, stated the applicable rule as follows:
“* * '* To exempt the company from liability, the intention of the other must be to commit the injury or cause death as well as to do the act, and must be directed toward the insured — conduct intentionally directed toward injuring or killing him.”
In the instant ease, the fact is clear that Meyers did not intend to inflict fatal injuries on the deceased. Actually there is no evidence, other than the act of striking deceased, that he intended to inflict any injuries upon him. The jury found by its special verdict that Meyers did not intend the result of the blows.
The court instructed as to the exception clause along with the reasoning of the beneficiary expressed in her brief as follows: “® * * if in a given situation, [snch as here] the result of an intentional act is, when contrasted by its dire, unforeseen and unexpected character, to be regarded as a result happening by ‘accident’ or by ‘accidental means’ then that same rationale must lead a court to hold, upon the same facts and in the same situation, though judged from the standpoint of the other participant, that fatal injuries inflicted by one, such as Meyers, upon another, such as Terry are not injuries ‘intentionally inflicted’ unless the inflicter could have reasonably foreseen that injuries would ensue of the breadth and scope of those inflicted.”
In Couch on Insurance, § 1240, note 42- it is said:
“Where the policy does not cover injuries or death inflicted or caused by the intentional act of any person, the question of intent is for the jury, where the evidence is such that reasonable men might differ.”
A case somewhat similar to this case was that of Union Accident Co. v. Willis, 44 Okl. 578, 582, 585, 145 P. 812, 814, L.R.A. 1915D, 358, where the deceased was struck a blow with the bare fist, knocked down, and his head struck the pavement causing his death. The court held there was liability. It pointed out that no deadly weapon was used which might be reasonably calculated to produce death; that there was no motive shown for the killing, and the means used indicated only an intention to strike the insured. The court said:
“The result was unforeseen and unusual, and not such as would ordinarily follow a blow with the fist. It was not the logical result of a deliberate act, and could not reasonably have been anticipated by Keys, and he cannot be charged with a design of producing it. * * *
“The death of the insured not having been intended by Keys, and being an unforeseen and unusual result of the blow struck, the insurer is not relieved of liability on account of the fact that the blow itself was intentionally inflicted. The words ‘intentionally inflicted’ in this case should be construed to refer to the fatal injuries resulting from the fall, and not to the blow. ’ ’
The above case was followed in the later case of Mid-Continent Life Ins. Co. v. Dunnington, 177 Okl. 484, 60 P.2d 1047, where a blow with the fist produced loss of the sight of an eye. And see also Lincoln Health & Accident Ins. Co. v. Cooper, 175 Okl. 467, 52 P.2d 1049.
In Olson v. Southern Surety Co., 201 Iowa 1334, 1344, 208 N.W. 213, 217, a case somewhat similar to that here, the court said:
“* * * The intention in our opinion must be to commit injury, as well as to do the act, and must be toward the insured ■ — - conduct intentionally directed to injuring him. [Citing cases.] We are of the opinion that the cause, nature, extent and effect of the injuries were matters of inference for the jury to draw, and were not for the determination of the court, as conclusions of law. ’ ’
In Allen v. Travelers Protective Ass’n, 163 Iowa 217, 226, 143 N.W. 574, 577, 48 L.R.A.,N.S., 600, the court had before it the question of whether injuries resulting in death were intentionally inflicted and the court there said:
‘ ‘ Such intent could be ascertained only by inference from the circumstances shown. The question of intent is usually and peculiarly a jury question. * * * Inasmuch as the burden was upon the defendant, a verdict could not be directed in its favor without holding that it had proved the intent affirmatively and conclusively. It is the exceptional case where the court can properly direct a verdict in favor of the party having the burden of proof. And this is especially so where a vital fact is sought to be established only by inference from attending circumstances.” To the same general effect are Nerrow v. Pacific Mut. Life Ins. Co., Mo.App., Kansas City, 1927, 294 S.W. 97; and Linnen v. Commercial Casualty Co., 152 S.C. 450, 150 S.E. 127.
There are eases taking the view that the intentional act of striking is sufficient to show, as a matter of law, that the resulting injury was intentionally inflicted. Compare Traveler’s Protective Ass’n v. Weil, 40 Tex.Civ.App. 629, 91 S.W. 886.
We do not agree with the cases so holding in a case such as this where no weapon was used other than the bare fist and where as here the circumstances do not indicate an intention to inflict injuries.
We hold that the question was properly submitted to the jury and that its verdict, under the circumstances here shown, should be upheld.
Were we to hold with those cases which hold that the intentional striking of one person by another is sufficient to show intentional injuries as a matter of law, defendant’s position would be no better.
Construing the contract strictly against the insurer and liberally in favor of the insured, as we must, it is not sufficient to relieve defendant of liability by the bare fact that Meyers intentionally inflicted injuries upon Terry. In order that intentional injury under the policy of insurance should relieve defendant of liability, the intent must be to inflict such injuries as may be reasonably calculated, “directly or indirectly”, “wholly or partially”, to result in or contribute to death.
The intent to injure in order to relieve of liability must be the intent to inflict such injuries as may reasonably be foreseen as likely to produce or contribute to death, directly or indirectly, wholly or partially. Order of United Com. Travelers of America v. Singletary, 111 Fla. 248, 149 So. 480; Brooks v. Continental Casualty Co., 13 La. App. 502, 128 So. 183; Union Accident Co. v. Willis, supra; Appleman, Insurance Law & Practice, supra; Jefferson Standard Life Ins. Co. v. Myers, supra.
There is no direct evidence of such intent here, and there was no prejudice resulting from the giving of the instructions complained of which presented that phase of the case.
The judgment is affirmed.
MR. JUSTICE ADAIR and THE HONORABLE LESTER H. LOBLE, District Judge, sitting for MR. JUSTICE BOTTOMRY concur.
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MR. JUSTICE JOHN CONWAY HARRISON
delivered the Opinion of the Court.
Defendant Roy L. Peters appeals from a conviction of the crime of receiving stolen property, and from the denial of a motion for a new trial.
On April 14, 1964, the Fergus County Attorney made a motion for leave to file an information charging defendant, hereinafter called appellant, with the crime of receiving stolen property. The motion alleged that on or about September 21, 1963, appellant knowingly received fifty head of stolen unbranded calves from Arnold Allen. The court signed the order granting leave to file the information and it was filed the same day. In addition to the offense which allegedly took place on September 21, 1963, the information also set forth three separate and distinct offenses of the same class: the second count charged appellant with receiving six head of stolen unbranded calves from Joe Cochran on October 22, 1963; the third count charged appellant with receiving twenty-eight head of stolen unbranded calves from Basil Long Fox on November 2, 1963; and the fourth count accused appellant of receiving twenty-eight head of stolen unbranded calves and one yearling from Basil Long Fox on November 6, 1963.
On April 16, 1964, appellant appeared for arraignment with his attorney, waived the statutory time for entering a plea, and pled not guilty to the charges.
At the trial, State’s witness Arnold Allen testified that he met appellant, a rancher, in August of 1963, in Jerry Johnson’s bar in Roy, Montana. On that occasion, he, Allen, agreed to sell some unbranded calves to appellant and Jerry Johnson. Allen told them that he would steal the calves from nearby Indian Reservation land. The agreed price was $50 per head. Allen testified that subsequently he made seven nighttime deliveries of calves to appellant’s ranch, and after each delivery he went to Johnson’s bar in Roy where he was paid cash for the number of calves delivered.
Allen further testified that on September 21, 1963, he gave appellant and Johnson a bill of sale for fifty calves to be delivered by October 15, 1963. However, he testified that he only delivered forty-fonr calves, receiving a total of $2,200 from Johnson. The bill of sale, introduced into evidence, was made out for $3,750 but Allen testified that this figure was not on the bill when he signed it.
The sheriff of Fergus County, George Stephens, testified that in March, 1964, while he was investigating a report that calves had come into the county without inspection he was informed that appellant had more calves on his ranch than cows, and that the calves were whitefaced although all appellant’s cows were black. The sheriff, accompanied by stock inspectors, went to appellant’s ranch to investigate. Appellant permitted examination of the calves, stating that he had four bills of sale to prove his ownership. All the calves had been branded with a brand registered to appellant and Johnson. After clipping the calves, the examiners found another brand, identified as belonging to W. D. Rankin, on one of the calves.
At the end of the State’s case-in-chief, the court granted appellant’s motion to dismiss counts two, three, and four from the information on the grounds of failure of proof. In the second count, appellant was accused of receiving stolen calves from Joe Cochran. Prior to appellant’s trial Cochran had signed a statement admitting that he stole six unbranded calves and delivered them to appellant. However, at the trial he testified that he had legitimately purchased them and made a bona fide sale to appellant. The third and fourth counts of the information were founded upon an alleged receiving of stolen calves from Basil Long Fox. At the trial, the sheriff testified that a subpoena had been issued for his appearance but that Long Fox could not be located.
Jerry Johnson, owner of the Roy bar, who was also charged with receiving stolen property, admitted that he financed the sale of the calves from Allen to appellant, but denied having knowledge that they were stolen. Johnson testified that he agreed to loan appellant the money to purchase the unbranded calves, that the agreed price was $75 per head, and that fifty calves were to be delivered. Johnson would pay out the money as the calves were delivered. He testified that he had known Allen for several years, assumed that he was in the cattle business, and that transactions involving unbranded calves were not uncommon in the community. Johnson further testified that Allen told them that he owned the calves.
Appellant also testified that Allen told them that he owned the calves. He contradicted most of Allen’s testimony, testifying that there were only three deliveries made to his ranch and only one was at night. He further testified that he had made no attempt to conceal the calves on his ranch, and that he did not notice the Rankin brand when he branded the calves. Appellant gave Johnson a note for $8,000, which included the amount Johnson had loaned him for the calves.
The jury found appellant guilty of the crime of receiving stolen property from Allen, and the court sentenced him to five years in the state penitentiary, with four years suspended. The court denied appellant’s motion for a new trial.
Appellant has set forth twenty-three specifications of error which can be consolidated into the following arguments:
(1) That appellant was prejudiced by the filing of the information;
(2) That the record does not disclose appellant’s presence during legal arguments in chambers at the trial;
(3) That venue was not proven;
(4) That the court erred in admitting certain evidence;
(5) That the State did not allege ownership of the stolen calves, or that ownership was not known;
(6) That the calves were seized in violation of appellant’s constitutional rights; and
(7) That the court erred in failing to give certain instructions and permitting certain exhibits to go to the jury. Bach of these arguments will be considered seriatim.
Appellant’s first contention is that he was prejudiced by tbe information containing three counts which were not set forth in the motion and order for leave to file the information. The motion and order accused appellant of receiving stolen calves on September 21, 1963, but the information included three additional separate and distinct offenses of the same class as provided by R.C.M.1947, § 94-6407.1. Appellant argues that he was prejudiced because the complete information was read to the jury although the application for leave to file, the order, and the court’s records do not show that there was probable cause for including the additional counts in the information.
Pursuant to R.C.M.1947, § 94-4911, the court’s order may (1) grant leave to file an information, or (2) require a preliminary examination. The alternative procedures assure the accused’s protection by requiring a judge to determine the existence of probable cause as a prerequisite to the filing of an information and the arrest of a defendant. The first procedure, application or motion for leave to file an information, is most commonly followed in Montana. (See 25 Montana Law Review 135 (1963).) This court has consistently held that leave to file is not a mere perfunctory matter, and that it must not be automatically granted. Sufficient facts must be presented to move the court’s discretion to grant leave. State ex rel. Juhl v. District Court, 107 Mont. 309, 84 P.2d 979, 120 A.L.R. 353 (1938). However, these facts do not have to be embodied in the application. An oral discussion of the facts constituting probable cause, accompanied by a written motion signed under oath, fulfills the statutory requirement: State v. Kacar, 74 Mont. 269, 240 P. 365 (1925); State v. Martin, 29 Mont. 273, 74 P. 725 (1903). Appellant does not contest the validity of the information with respect to count one, the count upon which he was convicted, for facts sufficient to establish probable cause were set forth in the motion and order.
It should be noted that at the time of the request for a motion for leave to file the information the county attorney had prepared and handed to the judge the information which set forth the four counts, that the judge had an opportunity to examine and approve or disapprove the information and that in granting the motion for leave to file he immediately granted and approved the filing of the information. Therefore, it was the information itself, not the motion for leave to file, that is the informative pleading and the notification to the appellant of the nature of the charges against him, and it is unnecessary in a multiple count information to put all of the counts in a motion for leave to file, for the sole purpose of the motion is to show the presiding judge that probable cause exists to issue the warrant and information.
Here the appellant waived any claimed irregularity by failing to move to strike those counts from the information or to request a preliminary hearing. Section 94-6407.1 permits the county attorney to file an information charging “two or more different offenses of the same class of crimes or offenses, under separate counts.” However, appellant must affirmatively assert his timely objections. Here, under R.C.M.1947, § 94-6601, appellant should have moved to set aside the information on the gromid that leave to file had not been granted with respect to the three separate counts. By failing to do this, appellant waived the objection R.C.M.1947, § 94-6602. As this court said in State v. Vinn, 50 Mont. 27, 32, 144 P. 773, 775 (1914) : “® * ® by entering his plea without a written motion to set aside the information and consenting to go to trial, the defendant waived his right to question the propriety of the prior proceedings.
Appellant next contends that the lower court erred by not requiring his presence at the trial: In chambers, during testimony of the State’s first witness, when appellant’s attorney made a motion to refuse further testimony on grounds that the information was fatally defective; in chambers, at the close of the State’s case-in-chief, when his attorney moved to dismiss the information for failure of proof; and in the courtroom, after the jury had returned their verdict, when his attorney argued a motion for a new trial. Appellant contends that his absence from hearings on these motions deprived him of his right to be personally present at his trial as required by R.C.M. 1947, § 94-7004.
The right of an accused criminal defendant to be present at his trial is expressly guaranteed by the Montana Constitution and Code provisions. Our Constitution, Article III, § 16, provides that: “In all criminal prosecutions the accused shall have the right to appear and defend in person and by counsel;” and R.C.M.1947, § 94-7004, requires that the defendant must be personally present at the trial. In State v. Spotted Hawk, 22 Mont. 33, 45, 55 P. 1026, 1028 (1899), Chief Justice Brantly stated that the “word ‘trial,’ when used in connection with criminal proceedings, means proceedings in open court * * *. It includes all those steps in the trial during which the defendant may he of assistance to his counsel in conducting the proceedings.” (Emphasis added.)
Here, the arguments in chambers on the motions to exclude further testimony and to dismiss the information involved questions of law. It is doubtful that appellant could have assisted his counsel at the presentation of these motions, and any knowledge of facts possessed by appellant, but not by his attorney, would have added nothing to the attorney’s legal arguments. “[T]he right of a defendant to be present when the triers of fact are absent is not an absolute right, but one qualified by a condition that nothing occurs when he is not present which could put him in jeopardy.” People v. Teitelbaum, 163 Cal. App.2d 184, 329 P.2d 157, 172 (1958).
Our review of the proceedings reveals that appellant was well represented on these occasions, and if present would have been a mere spectator. In a similar situation, this court held that a criminal defendant was not prejudiced by his absence during settlement of instructions, for that stage of the trial was “nothing more or less than the determination of questions of law.” State v. Hall, 55 Mont. 182, 187, 175 P. 267, 269 (1918).
The California court has construed identical constitutional and statutory provisions to hold that a defendant need not be present in chambers during arguments on matters of law. What the California court said in People v. Teitelbaum, supra 329 P.2d at 173, applies with equal force here: “Appellant has failed to point out any occurrences had out of his presence which in any way affected him adversely and our own study of the record convinces us that his rights were not substantially impaired. As a matter of fact the appellant was not excluded í:= # jjis absence was of his own volition and not by reason of any action of the court and by failing to personally assert,; or to assert through his counsel, his desire to be present, he waived his right to be present.”
We therefore hold that a defendant’s constitutional and statutory right to be present at trial does not encompass proceedings before the court involving matters of law. Such rights are violated only if the defendant is prevented from being personally present when the jury is hearing his cause, or is prevented from attending such other proceedings where his presence is essential to a fair and just determination of a substantial issue.
Appellant’s argument that the court erred by not requiring him to be present at the hearing on the motion for a new trial is likewise without merit. The Montana Constitution and statutory provisions discussed above do not require thai appellant be present at a hearing on a motion for a new trial because such a hearing is held after the verdict has been rendered and is not part of the trial. This view is followed by the majority of jurisdictions. See Anno. 69 A.L.R.2d 835, and Lester v. State, 212 Tenn. 338, 370 S.W.2d 405 (1963).
We find no merit in appellant’s argument that the State failed to prove that the crime was committed in Fergus. County. After carefully reviewing the transcript, we find there' was sufficient evidence presented to establish venue. Arnold Allen, when questioned by the County Attorney, testified.
“Q. And where did you deliver these calves ? A. To the Roy Peters ranch.
“Q. And where is that ranch? A. I think it is east of Roy.
“Q. Do you know whether it is in Fergus county or not? A. No, I don’t.”
Joe Cochran also testified as to the location of the Peters ranch:
“Q. Where was that that you met him? A. At his ranch the other side of Roy.
“Q. East of Roy? A. Yeah.
“Q. Do you know what county that ranch is in? A. In Lewistown, I guess.
“Q. Do you know whether it is in Fergus County? A. It must be if it is in Roy, ain’t it?”
Appellant testified that his ranch was located “Twelve miles just about due east” from Roy. And during the State’s rebuttal Arnold Allen further testified:
“Q. There has been some discussion, Arnold, about previous sales by you of calves here in Fergus county up in the Roy community. You heard that testimony? A. Yes, I did.
“Q. Have you made other prior sales of calves in this community? A. Yes.”
We have held that the court and jury may take judicial notice of county boundaries where undisputed testimony tends to establish venue of a crime within a particular county. Chief Justice Adair, speaking for the court in State v. Williams, 122 Mont. 279, 282, 202 P.2d 245, 246 (1949), stated that “the courts of this state will take judicial notice of the boundaries of the various counties as established, fixed and defined by the Codes and of the territorial limits of such political subdivision of the state as such limits are shown and depicted on the official map of the state of Montana. * * # Likewise the jury, as part of the court, may take notice of the general geography of Montana and of the boundaries and limits of the various political subdivisions of the state.”
Here, the court and jury were at liberty to take judicial notice of the boundaries of Fergus County as established by law, E.C.M.1947, § 16-214, and to consult “appropriate books or documents of reference,” E.C.M.1947, § 93-501-1, including the official map of the state, E.C.M.1947, § 19-117. The city of Eoy is shown on the official map, as well as the other maps of Montana. Several witnesses testified that appellant’s ranch was located eleven miles due east of Eoy.
The court and jury could measure the mileage from the Fergus-Petroleum County line, and it is clear that the ranch is within Fergus County. Too, they knew that it was the Fergus. County sheriff and his deputies that made the investigation,, not the sheriff of Petroleum County. By refusing to recognize that the court and jury were acquainted with the general location of appellant’s ranch within Fergus County, we would be ignoring reality.
Although this case extends the concept of judicial notice from locations of county seats, State v. Cates, 97 Mont. 173, 33 P.2d 578 (1934), and locations of cities and towns, State v. Williams, 122 Mont. 279, 202 P.2d 245 (1949), to locations of rural areas within a county, we “do not approve of indirect methods of establishing venue in criminal actions where, as here, direct evidence of such fact may be easily obtained.” State v. Williams, supra at 282, 202 P.2d at 247. But, under the circumstances of this case, we hold that the above-quoted testimony, supplemented by judicial notice of facts which the court and jury could consider, established the venue of the crime of receiving stolen property at appellant’s ranch in Fergus County.
The object of a criminal trial is to establish truth— and the just determination of that necessary goal is the responsibility of the triers of fact. Non-prejudicial jurisdictional or-procedural misadventures, involving technicalities which do not affect the merits of the cause, cannot substantially alter the ascertainment of truth and the operation of justice. The ulti mate disposition of any cause rests on these principles, and should not be a matter of luck or perhaps misadventure of one of the contestants during the course of the trial. State v. Rogers, (Wash.1965), 402 P.2d 501, 502, (1965).
Appellant complains that the court erred in admitting certain testimony and exhibits relating to ownership of the calves on the ground that a proper foundation was not laid connecting the alleged stolen calves with the calves received by appellant from Allen. We find no error. There were no objections to such testimony at the trial and the matter cannot be considered for the first time on appeal. State v. Cates, 97 Mont. 173, 33 P.2d 578 (1934).
Exhibit F was a photograph of a number of calves carrying the OU brand, registered to appellant and Johnson. Exhibit G was a closeup photograph of a calf carrying the OU brand and the brand, registered to W. D. Rankin. A brief summary of testimony relating to these exhibits establishes that they were properly admitted. The sheriff testified that appellant pointed out the calves he received “from the Indians across the river.” These calves were clipped and one was found to be carrying the Rankin brand. They were subsequently seized and taken to the Lewistown stockyards. A stock inspector was also present and accompanied the calves to the stockyards where he immediately telephoned the undersheriff .and requested him to photograph the calves. This testimony •establishes that the calves taken from appellant’s ranch were the same calves shown in the exhibits, and the photographs ■clearly show the registered brands.
Appellant’s next argument concerns several specifications of error involving the issue as to whether an information charging the crime of receiving stolen property must allege ownership of stolen property, or that ownership is unknown. The information filed against appellant charged him as follows: * # ROT L. PETERS, is accused by the County Attorney of Fergus County, Montana, by the information, of the crime of FELONY — Receiving stolen property committed as follows, to-wit:
“That at the County of Fergus, in the State of Montana, on or about the 21st day of SEPTEMBER A. D. 1963, and before the filing of this information the said ROY L. PETERS, did wilfully, wrongfully, unlawfully and feloniously, for his own gain, receive from ARNOLD ALLEN, fifty (50) head of unbranded calves, the said fifty (50) head of calves then and there being stolen property, and the Defendant then and there knowing the same to have been stolen property.”
Section 94-6401 et seq. establishes the rules for pleading criminal actions, and include the requirements of an information. Section 94-6403 requires the information to contain a concise statement of the facts constituting the offense, and section 94-6404 provides the proper form. The Code annotations to these sections are replete with decisions which sanction the sufficiency of informations set forth in the language of various criminal statutory offenses. Such informations are valid if they adequately apprise the defendant of the nature of the charged offense so that he may prepare his defense. The information must also accurately describe the offense so that the defendant will be protected against another prosecution for the same crime.
In this case, the information set forth the charge in the language of section 94-2721, which provides: “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 [for the crime of receiving stolen property].” This court has long recognized that the substantive elements of this offense which must be alleged in the information and established at the trial are: (1) that the property in question was stolen; (2) that the defendant bought it or received it knowing it to have been stolen; and (3) that he did so for his own gain or to prevent the owner from regaining possession of it. State v. Sim, 92 Mont. 541, 16 P.2d 411 (1932). The statute does not require that the fact of ownership of the stolen property, or that ownership is unknown, be alleged in the information. We adopt the rule that it is not necessary to allege ownership, or that ownership is unknown, where the information otherwise describes the stolen goods with sufficient accuracy to apprise appellant to prepare his defense and to protect him from double jeopardy. United States v. Linderman, 20 F.R.D. 459 (Mont.W.D.1957); State v. McGraw, 140 W.Va. 547, 85 S.E.2d 849 (1955); People v. Mitchell, 109 Cal.App. 116, 292 P. 692 (1930).
Appellant argues that the case of State v. Moxley, 41 Mont. 402, 408, 110 P. 83, 85 (1910), compels a contrary view, and that the failure to allege ownership in the information renders it fatally defective. In the Moxley case this court said: “In larceny it is necessary that the charge identify the offense by a description of the things stolen, and their ownership. The name of the owner must be stated, if known. * * # So [also] in charging the offense of receiving stolen property. # # * The reason of the rule is that the transaction may be so identified that the defendant may, by proper plea, protect himself against another prosecution for the same offense. It follows that the ownership must be proved as charged.” However, in State v. Huffman, 89 Mont. 194, 296 P. 789 (1931), this court observed that the information in the Moxley case did not contain a sufficient description of the stolen property, but only alleged the names of its owners. The court further noted that where the property is sufficiently described other than by ownership the Moxley rule is not necessary. In this case we think that the description of the stolen property in the information was sufficient to give appellant notice of the charge filed against him. Appellant cannot claim prejudice because the transcript contains much testimony that appellant knew which calves were referred to in the information. In addition, this result will not cause appellant to be placed in double jeopardy. Cf. State v. Mercer, 114 Mont. 142, 133 P.2d 358 (1943); and see State v. Rindal, 146 Mont. 64, 404 P.2d 327.
Appellant waived Ms constitutional right against unreasonable search and seizure by consenting to the actions of the state authorities.
The facts of this case clearly establish that appellant voluntarily consented to the investigation and inspection of the calves on his ranch. On March 9, 1964, appellant permitted the sheriff, the deputy sheriff, and two state livestock inspectors to enter Ms ranch and inspect the calves. Appellant told them that he had bought the calves from some Indians across the river and that he had bills of sale to prove his ownership. Appellant fully cooperated with the investigators and, in fact, assisted them in rounding up and corralling the calves. On March 14, 1964, appellant refused to admit the investigators onto his ranch, because he simply did not want to be bothered at the time. His attorney had advised him that he was within his rights to refuse admission. Two days later, on March 16, 1964, appellant again allowed the investigators to enter the ranch and inspect the calves. On that occasion, appellant helped the authorities clip the calves.
The record shows that appellant fully cooperated with the state authorities. Such cooperation must be considered a voluntary consent to the search and seizure of the calves. Thus, the Montana Constitutional provision against unreasonable search and seizure was not violated (Article III, § 7); Petition of Watson, 144 Mont. 576, 398 P.2d 949 (1965); Petition of McGrath, 143 Mont. 397, 390 P.2d 452 (1965); State v. Nelson, 130 Mont. 466, 304 P.2d 1110 (1956); State ex rel Muzzy v. Uotila, 71 Mont. 351, 229 P. 724 (1924); State v. Fuller, 34 Mont. 12, 85 P. 369 (1906). There was no infringement of the Fourth Amendment to the United States Constitution, which secures immunity from unreasonable search and seizure by state authorities under the Fourteenth Amendment. (See Mapp v. State of Ohio, 367 U.S. 643, 81 S.Ct. 1684, 6 L.Ed.2d 1081 (1961).)
In a recent case, Judge Browning, of the Ninth Circuit Court of Appeals, considered the question of consent and waiver of the constitutional right against unreasonable search and seizure in Cipres v. United States, 343 F.2d 95, 97, (1965). He said: “Waiver, in this context, means the ‘intentional relinquishment of a known right or privilege.’ [Citation omitted] Such a waiver cannot be conclusively presumed from a verbal expression of assent. The court must determine from all the circumstances whether the verbal assent reflected an understanding, uncoerced, and unequivocal election to grant the officers a license which the person knows may be freely and effectively withheld * * #. The crucial question is whether the citizen truly consented to the search * * The Ninth Circuit held that although police officers testified that Ciprés had verbally consented to their search, that fact, standing alone, did not establish waiver. The consent to search was obtained “under color of the badge.” Ciprés protested her innocence, told the officers that her luggage contained harmless articles and the key was unavailable, and asked if they had a search warrant. These circumstances tended to show that defendant’s “assent may have reflected less than a free, deliberate, and unequivocal decision” to permit the search. In Application of Tomich, 221 F.Supp. 500 (9th Cir. 1964), the Ninth Circuit also held that verbal consent did not constitute waiver of an unreasonable search and seizure. However, both of these cases are distinguishable from the instant case.
The Ciprés and Tomich cases both involved possession of contraband property. Ciprés, who had been seen with a known criminal, protested that the key to a suitcase was unavailable, (It contained narcotics.); and Tomich, a known criminal, protested that he did not have the key to his automobile trunk. (It contained burglar tools and narcotics.) The respective defendants reluctantly consented to the search, but told the police officers that they did not have the means to accomplish it. They knew that their complete cooperation would result in the discovery of the contraband. But they also knew that if they strongly protested the search they would arouse police suspicions. Thus, they equivocally .consented, seeking to give the impression that they had nothing to hide, and putting off or bluffing the police by causing them the inconvenience of independently obtaining access to property. However, in each case the defendant lied, for Ciprés’ suitcase was unlocked and Tomieh’s key was in his shoe. Such limited and equivocal consent, although prompted by a fear of the discovery of contraband, was not held to be effective waiver by the Ninth Circuit.
While we may not agree with that court’s interpretation, in this respect, yet in this case, appellant’s consent to the search was uncoerced, unconditional, and unequivocal. Coercion, if any, resulting from appellant’s mere confrontation with the state authorities was not present to the same extent as in Ciprés or Tomich. Possession of the calves was not illegal in itself, and appellant was confident that he had persuasive evidence of ownership and that the inspection would not reveal his crime. On two occasions, appellant voluntarily cooperated with the state authorities, and gave them unconditional permission to conduct the inspection. A few days prior to the latter instance, appellant’s attorney had apprised him of his right to prohibit entry — and he had done so. Thus, when he allowed the search on March 16, 1964, there was an “intentional relinquishment of a known right,” which must be considered a conscious waiver of the Fourth Amendment. In addition to appellant’s verbal consent, he actively participated in the investigation.
We therefore hold that under the facts and circumstances of this case, appellant’s verbal consent and active cooperation “reflected an understanding, uncoerced, and unequivocal election to grant [the authorities] a license which he knew could be freely and effectively withheld.” Furthermore, a careful review of the transcript reveals that appellant did not object to the search and seizure of the calves either before or during the trial. Appellant’s trial counsel was fully aware of these facts, and appellant does not allege that his trial counsel was incompetent in failing to move for the suppression of evidence obtained by the search and seizure.
There is no merit in appellant’s assertion that the court erred in refusing to give appellant’s offered Instruction No. 15, pertaining to facts and circumstances which the jury should consider in reaching its verdict. Contrary to the statement in appellant’s brief, the court did instruct the jury that “Mere possession of stolen property is not a criminal offense.” That correct statement of law was covered by Instruction 13. The court also gave sufficient instructions relating to intent. The substantive elements of the crime of receiving stolen property were set forth in Instructions No. 4 and No. 12.
Appellant assigns further error in the contentions that the court failed to instruct the jury on the law concerning impeachment of witnesses by prior contradictory statements, and on the law concerning testimony of an accomplice. Trial counsel have an affirmative duty to present offered instructions to the court. R.C.M.1947, § 94-7201. Where no instructions are offered, the questions cannot be raised for the first time on appeal. See State v. Porter, 125Mont. 503, 242 P.2d 984 (1952), and cases cited therein.
Appellant’s contention that the court erred in permitting State’s Exhibits B, C, D, E, F, and G- to go to the jury is likewise without merit. Exhibit B was admitted without objection, and although it related to the second count of the information which was dismissed, no motion was made for removal nor was it prejudicial for the count had been dismissed. Exhibit C was properly admitted over appellant’s objection. Appellant did not object to the admission of Exhibits D and E, and objections cannot be raised for the first time on appeal. The proper admission into evidence of Exhibits P and G is discussed above.
Appellant set forth other specifications of error in his brief which were not argued. We find them without merit and do not consider them prejudicial to the substantive rights of the appellant.
Appellant’s motion for a new trial was properly denied and the verdict of the jury will not be disturbed.
Judgment affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICE ADAIR concur.
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MR. JUSTICE BONNER
delivered the Opinion of the Court.
The plaintiffs, Robert S. Keller and James A. Cumming, represented defendant June Turner in an action against defendant Clyde Turner brought in the district court of the eleventh judicial district, Flathead county on four counts of divorce, partition, resulting trust, and partnership accounting. Clyde Turner cross-complained for divorce, partition and resulting trust.
The district court awarded June Turner $1,500 attorneys’ fees, which eventually were paid to plaintiffs; a divorce, a resulting trust as to one-half of the property solely in Clyde’s name; partition as to all property; and alimony for one year. Subsequently the parties entered into an agreement to end the litigation whereby Clyde Turner agreed to pay $74,200 “as and for her support”, and June Turner would relinquish all claims.
This case arose out of an alleged agreement made between the plaintiffs and June Turner with regard to the divorce and property actions. Sometime in 1966, June Turner consulted with plaintiff Cumming concerning a divorce. Mr. Cumming, for reasons not apparent from the record, asked plaintiff Keller to join with him in the action by Mrs. Turner against Mr. Turner. Mr. Keller testified that in December 1966 he was called to Mr. Cumming’s office for a meeting with Mr. Cumming, Mrs. Turner and Mrs. Turner’s daughter, Sandra. Mr. Keller further testified that he was not sure whether Mrs. Turner’s complaint against Mr. Turner had been filed, but he did state they discussed his entering the case; they also discussed his fee and agreed his fee would be $25.00 per hour plus $200 per each day spent in court. He further testified that they also agreed he should receive a contingent fee of one-third of all property he secured for her in her claims for partition, resulting trust and accounting.
At the conclusion of the divorce action the lower court awarded the plaintiffs $1,500 attorneys’ fees. Thereafter, plaintiff Keller consulted with Mrs. Turner in an attempt to enforce the alleged contingent fee agreement, apparently at the time seeking a fee of $5,000. No settlement was made so thereafter the plaintiffs commenced this action.
The district court, the Hon. Nat Allen presiding, upon defendants’ motion, concluded that the contingent fee agreement was illegal and void as against the public policy of the state of Montana under Coleman v. Sisson, 71 Mont. 435, 230 P. 582 (1924), and granted defendants’ motion to dismiss. This appeal ensued.
The question before this Court is whether an attorney can enforce a contingent fee agreement for claims for relief concerning property which claims for relief are combined with an action for divorce, i.e., was the contingent fee agreement in the present case void as against the public policy of the state of Montana?
We think it was. In re Sylvester’s Estate, 195 Iowa 1329, 192 N.W. 442, 443, 30 A.L.R. 180, 183 (1923), held:
“Ordinarily a contract between attorney and client, providing for the payment of a fee for legal services contingent upon the results obtained by the attorney, without more, is not an illegal contract, but one that is enforceable. (Citing cases)
“But the contract in the instant case involved more than the mere question of the payment of a contingent fee to appellees for legal services. It involved an agreement to pay an attorney’s fee contingent upon the procurement of a divorce and the adjustment of property rights in connection therewith. Such a contract, having for its object such a purpose, is one that involves a matter of public policy. The proper maintenance of the marriage relation is a matter of public concern. In general, a contract, the object of which is the procurement of a divorce, is against public policy and void. (Citing cases)
■ “A contract between an attorney and client, providing for the payment of a fee to the attorney contingent upon the procurement of a divorce for the client, is against public policy and illegal and void. Such a situation involves the personal interest of the attorney in preventing a reconciliation between the parties, a thing which the law favors and public policy encourages. (Citing cases)”
See In re Smith, 42 Wash.2d 188, 254 P.2d 464 (1953); Opperud v. Bussey, 172 Okl. 625, 46 P.2d 319 (1935); Annotation 30 A.L.R. 188; 7 C.J.S. Attorney and Client § 186; 17 C.J.S. Contracts § 235.
In Coleman v. Sisson, 71 Mont. 435, 444, 230 P. 582, 585, relied on by the court below in dismissing the complaint, this Court said:
“Contracts like the one before us, when the attorney is to receive a portion of the money or property obtained from the husband, necessarily tend toward the alienation of husband and wife. The attorney is interested, not in reconciliation, but in alienation. His cupidity serves to direct his action. ‘The sanctity of the marriage relation, the welfare of children, the good order of society, the regard for virtue, all of which the law seeks to foster and protect, are ample reasons why such a contract should be held to be contrary to public policy.’ (Citing In re Sylvester’s Estate, supra, as well as others.)
The reasons enumerated above are still valid and we see no reason why the rule should be different now from what it was at the time Coleman was decided. Also we think the rule laid down here is applicable regardless of whether the contingent fee agreement is entered into before or after an action for divorce is commenced.
The plaintiffs in a second issue argue that they are entitled in any event to more than the $1,500 they were awarded by the court in the divorce action. We cannot agree. The court had before it all the facts with regard to the divorce, the resulting trust, the accounting and the partition, and decided that plaintiffs were entitled to $1,500. There is nothing before this court to justify our overturning that decision.
Therefore, the judgment below is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES CASTLES and JOHN CONWAY HARRISON and THE HONORABLE ARTHUR B. MARTIN, District Judge, sitting in place of JUSTICE FRANK I. HASWELL, concur.
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ORDER
PER CURIAM.
Raymond C. Fuchs, an inmate of the state prison, appearing-pro se, filed with this Court a petition for his release by default, alleging that he had filed a petition in the District Court of Yellowstone County for a writ of mandamus for removal of a public official.
It is not possible from the allegations of the petition to ascertain the fact situation nor the grounds for the granting of any relief and by reason thereof the petition is denied.
|
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MR. CHIEF JUSTICE HARRISON:
Original habeas corpus proceeding brought by David Dawson, an inmate of the Montana State Prison.
It appearing that the application is without merit, the writ is denied and the proceeding is dismissed.
MR. JUSTICES ANGSTMAN and CASTLES concur.
|
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DECISION
The application of the above-named defendant for a review of the sentences of ten years for Voluntary Manslaughter & five years, for Carrying a Concealed Weapon, to run concurrently, imposed on September 20, 1967, 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 these sentences were not sufficiently lenient, particularly when it is considered that the sentences could have been consecutive and the defendant has a record of 3 prior felony convictions, which, if used, could have resulted in imprisonment for life or years without limit.
Any contention of the defendant that he was not guilty of the crimes 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.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstronu
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MR. JUSTICE BONNER
delivered the Opinion of the Court.
The respondent herein, Eddy Joseph, brought this action in the district court to recover damages for a breach of covenant of quiet enjoyment contained in a lease between himself and appellant herein, Hustad Corporation. The jury returned a verdict for the respondent Joseph and assessed damages in his favor in the sum of $18,500. From that award the appellant Hustad appeals.
September 25, 1964, Joseph and Hustad entered into a written lease whereby Joseph leased from Hustad for the period December 1, 1964, to November 30, 1974, a restaurant building 66 feet by 66 feet commonly known in Helena as Scheffi’s Pancake House. Among other covenants Joseph agreed to use the building exclusively as a restaurant and the Hustad Corporation, as lessor agreed that “Lessor shall at its own expense construct and maintain at all times during the terms of this lease a parking area on that portion of the premises on which the shopping center shall be erected, designated as ‘Parking Area’ on the plot plan hereto attached, marked ‘Exhibit A’. Said parking area shall be for the joint use of all lessees of the Lessor of the premises situate within the area described in Exhibit ‘B’, and for the use of the customers, employees, visitors and invitees of said lessees for driveway, walking or parking purposes.” While an exhibit B was missing. Defendant’s exhibit 2 at the trial was introduced as missing exhibit B. Defendant’s exhibit 2 is a plot of the Hustad Shopping Center as it exists on both sides of National Avenue.
The area in question is that land situate in the Hustad Shopping Center east of National Avenue, bounded on the north by Lyndale Avenue and on the south by Helena Avenue; more specifically the large parking area which lies adjacent to the pancake house. At the time the lease was signed in September 1964, the parking area had on it a small building which housed a dry cleaning establishment.
Just after the lease in question here was signed, Hustad Corporation caused construction of the building now used as the pancake house, occupancy being had by Joseph on or about December 1, 1964. However, just prior to occupation by Joseph and on or about November 18, 1964, Hustad commenced construction of a building, which building is now used as a doctors’ office, immediately north of the braiding housing the dry cleaners. Construction of the doctors’ building was completed April 1965, and thereafter in May 1965, Hustad commenced construction of an office building immediately south of the dry cleaners which office building now houses a photography studio, an insurance underwriters association and a propane gas company.
No objection was made by Joseph to the Hustad Corporation to the construction of either building at the time construction commenced or during the course thereof even though Joseph had personal knowledge of what was being done. Mr. Joseph did testify he asked Wally Hustad, the brother of H. F. Hustad who is president of the Hustad Corporation, what was going on when construction commenced on the doctors’ building. From the transcript it appears Wally Hustad was an independent contractor hired by the Hustad Corporation to construct the buildings, and was not an agent, officer or employee of the corporation.
Mr. Joseph further testified that other than the question put to Wally Hustad, who told him to speak to H. F. Hustad, he made no other objections to the construction of any building until March 1966, more than 16 months after he occupied the pancake house. Written notification of his objections as required by the lease was not made until April 22, 1966, through a letter from his attorney, James R. Paul.
In Ms complaint Joseph alleged that the parking lot situate on that portion of the Hustad Shopping Center east of' National Avenue was designated to the exclusive use of himself and the dry cleaning establishment, that Hustad Corporation by building the two additional buildings deprived Joseph of the use and quiet possession of the parking facilities. He also charges that the pro rata parking facilities available to him during most business hours has been reduced from 42-spaces to 6, about which more will be said later.
The complaint prayed for damages for loss of future profits, in the amount of $96,000 and for depreciation in the value of' the leasehold interest in the amount of $20„000. Testimony concerning Joseph’s estimation of the present worth of the leasehold interest was stricken from the record by the trial court as too speculative. No other evidence was introduced as to present value of the leasehold and, thereafter, the jury awarded damages for loss of future profits.
As specifications of error numbers 5 and 6 the appellant Hustad contends the court below erred in refusing to grant its motions for non-suit and for directed verdict. We agree with that contention.
With regard to tort law it has been said:
“In general, the tort must be in the breach of a legal duty comprising three distinct elements, to-wit: (a) Existence of legal duty from defendant to plaintiff; (b) breach of that duty; and (c) the damage as a proximate result.” Laclede Steel Co. v. Silas Mason Co., D.C., 67 F.Supp. 751, 759 (1946). See also Riggs v. Standard Oil Co., C.C., 130 F. 199; Standard Oil Co. v. Parrish, 7 Cir., 145 F. 829; Louisiana Oil Refining Corporation v. Reed, 5 Cir., 38 F.2d 159; Morris v. E. I. DuPont de Nemours & Co., 8 Cir., 68 F.2d 788.
The duty in question here was Hustad’s promise under the lease to furnish parking facilities for all its lessees in its shopping center and, specifically, Mr. Joseph’s pancake house. Mr. Joseph asserts Hustad breached that duty when it constructed two additional buildings on the premises which allegedly decreased parking available to him; he also asserts loss of future profits as a proximate result of that breach.
It is admitted by both parties that one of the main considerations when constructing a shopping center is the availability of adequate parking and ease of access thereto. Shopping centers exist because of an abundance of parking area and ease of access from and to the same. Deny either parking or .access thereto and they cease to exist as a viable entity. It is Joseph’s contention that availability has been denied him and that Hustad Corporation should respond in damages.
Mr. Joseph testified that before he signed the lease he roughly estimated that there was a total of 46 or 47 parking spaces available on the lot. He also testified that even with the dry cleaning establishment there he assumed he would have 41 or 42 available for his own use. In his complaint he asserts that additional construction has diminished his share of the total number of spaces available and contends that he is now limited to a pro rata share of 6 of his original 42.
His conclusion and assertion in the complaint that he is entitled to a pro rata share of the total parking available is not in accord with studies concerning shopping centers. The usual business understanding with regard to parking in shopping centers is that every lessee is equally entitled to the use of all the parking, or at least entitled to as much parking as his customers in his peak hours of business wish to occupy. The procedure is to secure lessees who peak hours vary so that ■continuous optimum use is made of the parking available without overloading at any one hour. On that basis the respondent or any other lessee is not entitled to any specific pro rata share of the parking available, but must share the total with all other lessees.
While respondent’s complaint alleges a total of 6 spaces available to him with a total of 46 or 47 spaces available for all lessees, other evidence shows that there are 52 parking spaces available in tbe parldng area between the front of his. building and Helena Avenue, with an additional 8 spaces in front of the propane and insurance company offices. So there are at least 60 off street spaces still available while respondent testified he assumed there were never, even before the additional construction, more than 46 or 47 spaces on the entire lot. In essence there are more lots now available for parking even with the additional construction than Joseph ever assumed there were.
In addition all of the times all witnesses at the trial testified that the parking lot was full totals less than 12 during the 34 month period from December 1, 1964 to October 10, 1967. The lot has been filled less than once every two and one-half months. Moreover, only once was it shown that the parking area was filled with patrons of someone other than Seheffi’s. Mr. Buller, manager of Scheffi’s at the time of trial, testified that on one occasion he arrived at Scheffi’s to find the lot filled and upon entering the restaurant only three tables, were occupied by customers.
In the early case of Fisher v. Butte Electric Ry. Co., 72 Mont. 594, 602, 235 P. 330, 332 (1925) we established the rule that:
“To sustain a recovery, the evidence relied upon whether direct or indirect, must be substantial—more than a mere scintilla. Escallier v. Great Northern Ry. Co., 46 Mont. 238, 127 P. 458, Ann.Cas. 1914B, 468, McIntyre v. Northern Pac. Ry. Co., 58 Mont. 256, 191 P. 1065. A verdict cannot rest upon conjecture, however shrewd, nor upon suspicion, however well grounded.”
In this same vein we held in Morton v. Mooney, 97 Mont. 1, 11, 33 P.2d 262, 265 (1934):
“It is true that where the record presents a conflict in the evidence, resolved by the jury in favor of the plaintiff, the action of the jury precludes this court from disturbing the verdict (citing cases) but this is true only when there is substantial evidence in the record to support the verdict and judg ment. (citing cases) Substantial evidence is such as will convince reasonable men and one which such men may not reasonably differ as to whether it establishes the plaintiff’s case, .and, if all reasonable men must conclude that the evidence ■does not establish such case, then it is not substantial evidence.” (citing cases)
R.C.M.1947, section 93-301-4 provides: “The law does not ¡require demonstration; that is, such a degree of proof as, excluding possibility of error, produces absolute certainty, because such proof is rarely possible. Moral certainty is only required, or that degree of proof which produces conviction in an unprejudiced mind.”
Also R.C.M.1947, section 93-301-13 provides: “The evidence is deemed satisfactory which ordinarily produces moral certainty or conviction in an unprejudiced mind. Such evidence •alone will justify a verdict. Evidence less than this is denominated slight evidence.”
¥e have said that inherently weak evidence may still be deemed substantial. Batchoff v. Craney, 119 Mont. 157, 172 P.2d 308; Campeau v. Lewis, 144 Mont. 543, 398 P.2d 960. However, in the instant case we believe that there isn’t even ■any weak evidence supporting Joseph’s contention that he has been deprived of any parking area. The only testimony to prove Joseph’s allegations is that one time the lot was filled but only three tables were in use in the restaurant itself. There is no showing whose customers had filled the lot the other times it was full; cei’tainly if they were customers of Scheffi’s, then Mr. Joseph has no complaint. We do not feel that testimony that the lot was full once and Scheffi’s customers were not the ones occupying it can be termed substantial evidence tending to prove Joseph’s cause of action.
Viewing all the evidence in the light most favorable to Mr. Joseph and giving him the benefit of all favorable inferences to be drawn therefrom, we think Joseph has failed to raise more than mere conjecture or speculation that Hustad Corpora tion failed to furnish parking areas. Mere surmise or conjecture, as noted above, is insufficient to establish a cause of action.
Since Joseph has failed to show a breach of the duty to furnish parking we do not feel constrained to burden this record with the remaining specifications of error of Hustad Corporation and therefore the judgment below is reversed and the case dismissed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES HASWELL and CASTLES, concur.
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PER CURIAM.
Application for order to reinstate temporary restraining order heretofore dissolved by the District Court.
The Court being of the opinion that applicant has an adequate remedy at law, the application is denied.
MR. JUSTICE ADAIR dissented.
|
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Opinion:
PER CURIAM.
This is a contempt proceeding.
Respondent, George Niewoehner, is an attorney at law admitted and licensed by this court to practice before it.
On Saturday, October 7, 1944, respondent came to the office of the clerk of this court and there delivered for filing and presentation to the court a typewritten- motion. He also left with the clerk five copies of such motion. The motion reads:
“In the Supreme Court of the State of Montana.
“In Re the minutes of the Supreme Court
“Motion for an Order Directing that the Minutes and Records of the Supreme Court of the State of Montana be Purged of Misleading Entries and Made Whole.
“Comes now George Niewoehner, Esq., as an officer of the above entitled Court, and in support of his motion to be presently made represents and alleges:
“That on or before July 7, 1941, Mr. Justice Leif Erickson abandoned his duties and prerogatives as Justice of the Supreme Court of the State of Montana, and thereupon accepted employment as a referee for the National Railroad Adjustment Board, all in violation of his oath of office, and in breach of his trust to the people;
“That Mr. Leif Erickson did continue such abandonment and neglect until and including September 8, 1941;
“That on or before May 12, 1943, Mr. acting Justice Leif Erickson did again abandon his duties and prerogatives as Justice of the Supreme Court of the State of Montana, and thereupon again accepted employment as a referee for the National Railroad Adjustment Board, all in violation of the Montana Constitution, in violation of his oath of office, and in breach of his trust to the people;
‘ ‘ That Mr. Leif Erickson did continue such abandonment and neglect until and including June 6, 1943;
“That on or before July 15, 1943, Mr. acting Justice Leif Erickson did still again abandon his duties and prerogatives as Justice of the Supreme Court of the State of Montana, and thereupon did still again accept employment as a referee for the National Railroad Adjustment Board, all in violation of the Montana Constitution, in violation of his oath of office, and in breach of his trust to the people;
“That Mr. Leif Erickson did continue such abandonment and neglect until and including September 11, 1943;
“That Mr. Leif Erickson thus served the National Railroad Adjustment Board, in violation of the Montana Constitution, in violation of his oath of office, and in neglect of his duties to the people of Montana, for the following periods:
“July 7, 1941, to September 8, 1941, inclusive, a period of sixty-four (64) consecutive days,
“May 12, 1943, to June 6, 1943, inclusive, a period of twenty-six (26) consecutive days,
“July 15, 1943, to September 11, 1943, a period of fifty-nine (59) consecutive days, which all told made a total time in service for the National Railroad Adjustment Board of one hundred forty-seven (147) days;
“That for his services as referee for the National Railroad Adjustment Board, Mr. Leif Erickson was paid the sum of Seven Thousand Three Hundred Seventy-five Dollars ($7,-375.00) at the rate of Fifty Dollars ($50.00) per day, and did receive expenses and per diem in the amount of One Thousand Two Hundred Sixty-seven Dollars ($1,267.00), making a total payment of Eight Thousand Six Hundred Forty-two Dollars ($8,642.00) received for one hundred forty-seven (147) days of unlawful and unconstitutional employment outside his duties as Justice of this Court;
“That Mr. Leif Erickson did let, and still lets, the Minutes of this Court indicate that he served the people of Montana during these one hundred forty-seven (147) days, and that he has made statements under oath to support salary claims against the State Treasurer of the State of Montana covering these identical days;
“That in addition to the Eight Thousand Six Hundred Forty-two Dollars ($8,642.00) he received for employment outside this state, Mr. Leif Erickson has drawn his full salary as Justice from the State of Montana for the same one hundred forty- seven (147) days at the date of Seven Thousand Five Hundred Dollars ($7,500.00) a year;
“That as a result of the facts alleged hereinabove the said Mr. Leif Erickson has in fact and in truth neglected his duties as a Justice since July 7, 1941, and has much of the time been absent earning wages for himself at the rate of Fifty Dollars ($50.00) per day, together with expenses and per diem, when the Supreme Court was in session;
“That as a result of said facts Mr. Leif Erickson has not been a de jure justice of the Supreme Court since the year 1941;
“That despite the aforesaid facts, many of them known to other Justices of this Court, the Minutes of this Court have continued to indicate the said Leif Erickson as being present when he was in fact absent;
‘ ‘ That the official records of the cases decided by the Supreme Court, and the official printed reports of those decisions, make it appear that in many of these cases and decisions Mr. Leif Erickson properly participated by exercising the judicial discretion vested in him by the people of the State of Montana when in fact and in truth Mr. Leif Erickson did not so properly participate and exercise his discretion in those cases and decisions;
“That as they now stand the Minutes of the Supreme Court of the State of Montana are misleading and are not a true representation of the conduct of Mr. Leif Erickson as a Justice of the Supreme Court of the State of Montana, making it impossible for the people of Montana to ascertain the true fashion in which the business of their Supreme Court has been conducted;
“That the matters and things alleged hereinabove are calculated to destroy the integrity and dignity of the Supreme Court of the State of Montana, and that the Constitutional rights and guarantees of the people of Montana are thereby imminently jeopardized;
“That your petitioner being an officer of the Supreme Court, it is his duty to endeavor to have the Minutes of the Supreme Court rectified;
“Now, therefore, I move the Supreme Court for an order directing' that the Minutes and records be purged of all those entries which make it appear that Mr. Leif Erickson was present in Court when in fact he was not, or. which make it appear that Mr. Leif Erickson was properly participating in the decisions of the Court when in fact he was not, and directing that the Minutes and records be made to show that Mr. Leif Erickson was absent from Court when he was in fact absent, and be made to show that Mr. Leif Erickson did not participate in those cases and decisions in which he in fact did not properly participate by exercising the judicial discretion vested in him by the people of the State of Montana.
“George Neiwoehner”
Upon receiving' the motion the clerk promptly presented it to the Chief .Justice together with the five copies for the use of the Justices, subdivision 3 of Rule XI of the published rules of this court providing that, “Unless otherwise ordered, a motion will be considered and disposed of without oral argument.”
On Monday, October 9, 1944, being the next business day, the respondent mailed to all the members of the bar of this state a mimeographed copy of the motion together with a letter signed by him. The letter reads:
‘‘ George Niewoehner “Lawyer
“White Sulphur Springs, Montana
“October 9, 1944
“Dear Sir.-
“When you have finished reading this letter you may throw it away and dismiss the whole affair from your mind, if you wish. What you think of my experiences is none of my business.
“In three sentences I am going to tell you why I have taken the trouble to send this mimeographed letter to every lawyer in the state. The people of Montana, including the lawyers, have the right to have the records of the Supreme Court show what business is transacted by the Supreme Court, how and when the business is transacted, and what Justices participate. Despite this right, I believe that the Minutes do not show how the Supreme Court took care of a certain matter entitled ‘ In Be the Minutes of the Supreme Court.’ Therefore I am going to give you the facts, with no comment whatsoever — draw your own conclusions.
“Just before noon on Thursday, October 5th, I called the Marshal of the Supreme Court, told him I would have an ex parte matter to be heard at 10:00 A. M. on Saturday, October 7th, and asked him to notify the Justices and have them on the Bench at that time. I did not give him any information as to the nature of the case. He said he would do as requested. Early that afternoon the Marshal advised me he had notified Justices Johnson, Anderson, Morris and Adair, and that those Justices said they would be present.
“Then I went to the Court’s noticing board upon which matters to be heard are noticed, and there was a notice on the board that there would be a matter at 10:00 A. M. on Saturday. My name appeared in the notice thus: ‘ (Niewoehner) ’.
“On Saturday, October 7th, I was waiting at the office of the Clerk of the Supreme Court at ten minutes to 9:00 A. M. when the Clerk arrived. I asked the Clerk to file a Motion, gave him the Motion and five copies thereof, and gave him a ten dollar bill for the filing fee. A copy of the Motion is enclosed herewith.
“Thereupon the Clerk said he would not file any papers I might have, that he would transmit the Motion to the Justices, and that I would be advised as to what the Court would do.
“I waited, ready, until and after 10:00 A. M. The Justices did not take the Bench.
“At about five minutes after 10:00 A. M. the Clerk took me into his office, told me I would not be heard, and told me that the Court would notify me as to what it would do at some indefinite time in the future. The Clerk returned my ten dollars.
“Thereafter, I looked again at the bulletin board, and the notice of the hearing which I was to have had was still there.
"Thereafter I looked at the Minutes of the Court. There was no entry covering this item of business.
"Yours very truly,
"Enc. copy of motion. George Niewoehner”
On October 14, 1944, H. C. Hall, Esq., an attorney at law and officer of this court, presented to the court an affidavit charging, among other things, that the respondent did the aforesaid acts and thereby committed contempt of this court.
The accusatory affidavit was filed and, upon order made, citation was issued and served on respondent requiring him to show cause, on a day certain, why he should not be adjudged in contempt and punished accordingly.
Motion to Disqualify Justices. On October 25, 1944, respondent appeared by his attorneys and filed herein a motion for an order to disqualify four of the five Justices of this court, or, in the alternative, for an order disqualifying herein the Chief Justice and Associate Justice Erickson.
The ground urged for the disqualification of the four Justices was that they are alleged to have prejudged the matter in that on October 14, 1944, they joined in making an order for the issuance of citation wherein is recited the alleged conduct of respondent of which complaint is here made. In State ex rel. Short v. Owens, 125 Okl. 66, 256 Pac. 704, 708, 52 A. L. R. 1270, the court overruled a like motion made by respondent therein, saying: "While * * * he contends that the challenged Justices informed against and are prosecuting him in this action and it is true the rule to show cause and the action was begun at the instance of this court, surety respondent does not have the temerity to assert that in the proper case the court against which a contempt is committed is without power to act, and, having moved to bring the matter to trial, is therefore disqualified. Such is not and never has been the law.”
It is also manifest that the order for the issuance of a citation for contempt is no more a prejudgment or a conviction than the order for an alternative writ, or- an order made by a district judge during the course of a trial directing the county attorney to file an information against a witness for perjury. (33 C. J. 1009, 1010, sec. 167.)
The alternative of the motion was that Chief Justice Johnson and Associate Justice Erickson were disqualified because they had both served as referees' with the National Railroad Adjustment Board and had a personal interest in the determination of the question as to the propriety or legality of such service. As noted below, that question was not an issue in either the motion to amend records, or in this proceeding, although it would seem that respondent’s purpose throughout has been calculated to give that public impression. Manifestly the question cannot be adjudicated in this case and no member of the court is disqualified by his possible interest in the question.
Respondent’s original motion contains lengthy allegations as to the service of Mr. Justice Erickson as a referee with the board. It sets out the daily compensation paid him for this service. It contains a statement as to the total amount paid him, including even his railroad fare. It charges that such service by him was in violation of the Constitution of Montana, but it asks no order of the Court based upon these charges or any of the other allegations set forth above. The motion does not seek any ruling that service by a Justice of the Montana Supreme Court at the call of the federal government as an arbiter in labor disputes violates the Montana Constitution. It does not ask that a forfeiture of his office be worked. The motion does not seek the recovery of any monies from Mr. Justice Erickson. Under its allegations not only is it impossible to determine any of these questions in which Mr. Justice Erickson might have such a personal interest as to disqualify him, but the motion does not ask for the determination of them. The only ostensible purpose of the motion is to seek a correction of the minutes and records of the Court. The relief that could be granted or denied on this motion affects the clerk of the court and the court itself and not any of the Justices, and this is true of Justices Erickson and Johnson as well as of the other three members of the court.
It was also contended that the two Justices in question were disqualified because respondent had summoned them as witnesses on his behalf to testify concerning Associate Justice Erickson’s absences and concerning his service and payment as a referee during those absences and concerning the manner of preparing and signing the minutes, records and decisions of the Court. As noted, the Justice’s service or payment as a referee was not an issue in the ease, and since the minutes and records did not indicate that the member was present when he was alleged to have been absent it was not material to the issues whether he was actually absent or not, or in what manner the minutes, records and decisions of the court were prepared and signed. "Where the calling of a judge as a witness is relied upon for his disqualification in proper cases, the materiality and the necessity for his testimony must be shown. (State ex rel. Short v. Owens, supra; Johnson v. Wells, 5 Okl. Cr. 599, 115 Pac. 375; Dancy v. Owens, 126 Okl. 37, 258 Pac. 879; Goad v. State, 43 Okl. Cr. 411, 279 Pac. 927.) Here the affidavits annexed to the motion showed neither the materiality of the evidence sought to be adduced, nor the necessity for obtaining it from these particular witnesses. In fact at the trial respondent did not call the witnesses but the desired evidence concerning Justice Erickson’s absences and his service and payment as a referee with the National Railroad Adjustment Board was stipulated by the parties, subject to objection as to its materiality.
The action is not for the benefit of any of the Justices. In State ex rel. Metcalf v. District Court, 52 Mont. 46, 56, 155 Pac. 278, 281, L. R. A. 1916F, 132, Ann. Cas. 1918A, 985, this court speaking through Mr. Justice Holloway said: “The power to punish for contempt is in its nature a trust reposed in the courts, not for themselves, but for the people whose laws they interpret and whose authority they exercise. (Watson v. Williams, 36 Miss. 331.) While a court which would hesitate to use the power when the circumstances warrant would be guilty of craven faithlessness to duty it is always to' be kept in mind that such power is imperious in its nature and summary in its execution. Under the law as it has been modified to harmonize with the genius of our institutions, the very judge who is libeled may become complainant, prosecutor, witness, and judge.” (See, also, State ex rel. Short v. Owens, supra; Owens v. Dancy, 10 Cir., 36 Fed. (2d) 882.) “Contempts of court are punished as offenses against the administration of justice, and not as personal affronts to those who exercise judicial functions, * *
(Ex parte Sullivan, 10 Okl. Cr. 465, 138 Pac. 815, 818, Ann. Cas. 1916A, 719.) Accordingly this court held in In re Nelson, 103 Mont. 43, 60 Pac. (2d) 365, in an opinion concurred in by Justices John A. Mathews, Ralph J. Anderson, Samuel V. Stewart and Claude F. Morris, that it was not objectionable for Associate Justices Stewart and Anderson to testify to material matters and also to participate as members of the court. In his attempt to disqualify two of the Justices of this court on account of their being subpoenaed as witnesses on his behalf, respondent relies principally upon a certain dictum of this court in its recent decision in State ex rel. Moser v. District Court, 116 Mont., 305, 151 Pac. (2d) 1002, where the court quoted with approval from the decision of the Criminal Court of Appeals of Oklahoma in Ex parte Owens, 37 Old. Cr. 118, 258 Pac. 758. The author of the Moser opinion failed to note that at the beginning of the report of Ex parte Owens, supra, in the Pacific Reporter there appears this notation: “For opinion of Supreme Court quashing and annulling this opinion, see 258 Pac. 879.” He did, however, write [151 Pac. (2d) 1008] : “See, also: Dancy v. Owens, 126 Okl. 37, 258 Pac. 879.” In Dancy v. Owens last cited, the Supreme Court of Oklahoma expressly quashed, vacated, set aside and held for naught the decision in Ex parte Owens, supra, and branded it as “misleading to other courts of the state, and destructive of the judicial system of which this court is the head.” [126 Okl. 37, 258 Pac. 887.] Thus this court’s dictum in State ex rel. Moser v. District Court, supra, is based upon a decision which is not the law of Oklahoma and which is contrary to the law of Montana as is expressed in State ex rel. Metcalf v. District Court, supra, and in In re Nelson, supra, which we deem to be the law of this state. The motion for an order to disqualify the justices, being without merit, was denied.
In response to the citation and order to show cause, the respondent on November 21, 1944, appeared before this court in person and by his attorneys and the matter was heard. At the hearing respondent presented seriatim (1) a motion to quash the citation, (2) a special plea in bar, (3) an oral plea of “Not Guilty,” and (4) a written answer.
Motion to quash. In the accusatory affidavit affiant states that he “is- informed and believes” certain allegations therein set forth. In his motion to quash, respondent contends that such allegations so made on information and belief render the affidavit insufficient but this court has held to the contrary. (See State ex rel. Grice v. District Court, 37 Mont. 590, 97 Pac. 1032, and State ex rel. Young v. District Court, 102 Mont. 487, 58 Pac. (2d) 1243.) The motion to quash asserts that this proceeding is violative of respondent’s rights under section 10 of Article III of the Constitution of Montana and of the First Amendment to the Constitution of the United States, but such objections are not tenable. (See In re Nelson, supra.) The motion to quash also urges that in denying respondent’s motion to disqualify four, or in the alternative two, of the Justices of this court his rights under section 27 of Article III of the Constitution of Montana and the Fourteenth Amendment to the Constitution of the United States were violated, but we found no merit in this contention and the motion to quash the citation was denied.
Special Plea in Bar. On October 14, 1944, this court made an order to show cause setting forth the alleged conduct constituting the alleged contempt and directing that citation issue and be served upon respondent, being Cause No. 8562, but before such cause was heard or determined the accusatory affidavit of H. C. Hall, Esq., in the proceeding now before us was presented and filed and thereupon said prior cause No. 8562 was, upon order of this court, dismissed without prejudice. By a special plea in bar, respondent now urges that under sec tion 12229 of the Penal Code such dismissal without prejudice constituted a bar to any further prosecution of the contempt charges against respondent. Section 12229, supra, relates only to criminal prosecutions, which actions must be commenced by the filing of a complaint, an information or an indictment. The present proceedings were not instituted under the provisions of the Penal Code and section 12229, supra, is not here applicable. In State ex rel. Haskell v. Faulds, 17 Mont. 140, 148, 42 Pac. 285, 288, this court observed that “although such matters may be crimes, and punishable as such, still this does not deprive the courts of the power to punish such acts as contempts.” The contempt proceeding itself, while of a criminal nature, is not a criminal prosecution within the meaning of the Criminal Code. (State ex rel. Flynn v. Fifth Judicial District Court, 24 Mont. 33, 60 Pac. 493.) Furthermore the contempt in question is not within the acts enumerated as misdemeanors under the penal statute (see. 10944). The special plea in bar failed to state facts sufficient to constitute either a bar or a defense to this proceeding and relator’s demurrer thereto was sustained on the authority of Ex parte Brambini, 192 Cal. 19, 218 Pac. 569, and State ex rel. Odenwald v. District Court, 98 Mont. 1, 38 Pac. (2d) 269.
Accusatory affidavit. The accusatory affidavit alleges that respondent delivered his motion to the clerk for filing; that he thereafter mailed letters, enclosing copies of said motion, to divers persons throughout the state of Montana; that the motion was intended and calculated by respondent “to place manifestly irrelevant and improper matter in the files and records of this Court, and to use the same for the purposes apart from judicial business, namely for political purposes, and to embarrass, hinder and obstruct the administration of justice, to lessen respect for the Court and to destroy its dignity, all of which such motion tends manifestly to do”; that respondent “has misused his position and privilege as an officer of this Court and has misused this Court’s records and the proceedings thereof for purely political purposes”; and that the motion contains irrelevant and impertinent matters which eonld not be reflected in the minutes or upon the records of this court as respondent well knew.
Answer. In his answer respondent pleads “Not Guilty” to the charges contained in the accusatory affidavit and then avers that the prosecution: (1) Impairs freedom of speech in violation of section 10 of Article III of the Constitution of Montana; (2) denies him due process in violation of section 27 of Article III of the Constitution of Montana and the Fourteenth Amendment to the Federal Constitution; and (3) denies him the privilege of free speech and the freedom of the press in violation of the First and Fourteenth Amendments to the Federal Constitution.
At the hearing, various documents were received in evidence, namely: (1) Respondent’s motion for an order directing that the minutes and records be purged; (2) the minutes of the court for the three separate periods of time mentioned in respondent’s motion; (3) order of the court of November 15, 1944, denying respondent’s motion; (4) letter of October 9th mailed by respondent to the members of the bar of this state; (5) proclamation issued by the Governor proclaiming a general election to be held in the state of Montana on November 7, 1944, to elect, among others, a governor and two associate justices of the Supreme Court; (6) certificate by the Governor that at the primary election held on July 19, 1944, Leif Erickson, now an associate justice of this court, was duly nominated as candidate of the Democratic party for the office of governor; and (7) dissent of Mr. Justice Morris, filed November 17, 1944, to the order theretofore made denying respondent’s motion for an order amending the minutes and records of the court.
The clerk testified that on October 7 the respondent delivered to him the original and five copies of respondent’s motion, saying that he wished to file them; that the clerk “accepted the papers and transmitted them to Chief Justice Howard Johnson;” and that immediately thereafter he advised respondent what he had done with the papers. Julius J. Wuertimer, an attorney at law, testified that he received through the United States mails at Great Falls, where he resides, respondent’s letter of October 9; that enclosed therewith was a mimeographed copy of respondent’s motion; and that the witness knew that similar or identical communications had been received on or about the same date by other lawyers in the city of Great Falls. Counsel for respondent in open court admitted that respondent’s signature was affixed to the letter so received by the witness Wuerthner, and relator rested.
Respondent, though present in court, did not testify. It was stipulated by counsel that the respondent was born in the state of North Dakota, United States of America, on the 13th day of March, 1912, and at all times thereafter remained a native-born citizen of the United States. Respondent called the clerk and a correspondent for the Associated Press as witnesses in his behalf but their testimony in no manner tends to contradict any of the charges made in the accusatory affidavit nor any of the evidence introduced by relator. No evidence was introduced by respondent disputing the fact that he delivered the original motion to the clerk for filing or that on the next business day he mailed mimeographed copies thereof, together with his letter of October 9, to every lawyer in the state and respondent has wholly failed to show why such acts and conduct are not contempt of this court.
As will be noted from a reading of the motion, it does not purport to seek a determination of the legality of the justice’s service as a referee with the National Railroad Adjustment Board under the provisions of federal law during his periods of absence. In fact there can be no such determination upon an ex parte motion nor in any event without making the interested person a party to the action or proceeding. Nevertheless the greater part of the motion consists of statements, accusations and conclusions of law concerning such extraneous matters.
Respondent’s motion was delivered to the clerk and presented to the court on October 7th, being exactly one month prior to the general election of November 7th. Mr. Justice Erickson was a candidate for the office of governor at that election and since the statements concerning said justice set forth in respondent’s motion had no possible reference to the ostensible purpose of the motion it is apparent that respondent, had inserted same for other than judicial purposes, namely for political purposes and to influence the outcome of said election. It is a rebuttable presumption which the respondent has not attempted to refute “that a person intends the ordinary consequence of his voluntary act” (sec. 10606, subsec. 3).
It is not an issue here whether the extraneous allegations, accusations and legal conclusions are defamatory or scurrilous, or whether they could properly have been used as political campaign material. The issue is simply whether or not the attorney’s said conduct is such as to show him guilty of contempt.
As an attorney at law, respondent.is chargeable with edge of the irrelevancy and impertinency of the matters which he set forth in the motion and which were wholly foreign to the ostensible purpose of the motion. Respondent is likewise chargeable with the knowledge of his duties as an officer of the court; to use it and its files, records and machinery for only bona fide judicial purposes.
In his letter of Monday, October 9, 1944, respondent made a further attack upon the court’s minutes because they did not then show any action taken upon the motion which he presented to the court through its clerk on the preceding business day. He further attacks the court because the Justices did not convene at 10 o ’clock a. m. on that day to hear his motion, despite the fact that under the published rules and established practice such motions are considered and disposed of without oral argument unless otherwise ordered (subdivision 3 of Rule XI) and that in any event it would be for the court, not the respondent, to set the time for a hearing. He further complains that “the clerk said he would not file any papers I might have, that he would transmit the motion to the Justices, and that I would be advised as to what the court would do.” When the respondent delivered his papers to the clerk with directions that they be filed and when the clerk accepted the papers and transmitted them to the Chief Justice for action by the court, the documents were then and there filed and before the court, irrespective of anything that the clerk may have said or whether or not he then stamped, marked or wrote any filing memoranda or data on the papers. “A paper is filed when it is delivered to the proper officer and by him received for filing.” (21 C. J. S., Courts, sec. 228, p.,427.)
Respondent further complained that shortly after 10 o’clock a. m., the clerk informed him that he would not then be heard and that the court would notify him as to what it would do at some indefinite time in the future. As before stated, the respondent is charged with the knowledge of the rules promulgated and the practice followed in this court and he should have known that he was not entitled to orally argue his motion nor to an immediate decision thereon. He did not specify any particular entry as being erroneous, but made an attack generally upon the minutes covering three separate periods of time during two separate years and time was required to examine the minutes and records for such periods and to consider the charges thus made, and he well knew that time would be required for this study but notwithstanding he sent his letter out on the next business day after filing the motion.
Complaining further, respondent states “the clerk returned my Ten Dollars.” The fees of the clerk are prescribed by the legislature. (Sec. 372, Rev. Codes.) No fee is prescribed for the filing of a motion and therefore no fee could be accepted by the clerk for he may not collect any fee not prescribed by law. (State ex rel. Baker v. Second Judicial District Court, 24 Mont. 425, 62 Pac. 688; State ex rel. King v. Second Judicial District Court, 25 Mont. 1, 63 Pac. 402.)
Complaining further, respondent states that after the clerk returned his ten dollars, he looked up the minutes of the court and that there was no entry covering this item of business. The minutes are simply brief memoranda of what takes place in court, made by the authority of the court. The minutes do not now nor have they in the past indicated the time of reception or filing of typewritten or printed motions or the time of pay znent of appearance fees, nor the amount of fees collected. Clearly the writing and publication of the letter of October 9th constituted contempt. In Re Shay, 160 Cal. 399, 117 Pac. 442, 446, the court said: ‘‘ That the writing and" publication of the letter, if the false statements therein made were believed, would cast discredit upon this court and the Justices thereof, cannot be denied. It falsely imputes to the Justices of this court improper conduct of which they are entirely innocent. Whether made wittingly, or through sheer inadvertence or carelessness, it was a- grave breach of his duty as an attorney on the part of Mr. Shay. Apparently it was not intended to be made public. Its recent publication does not appear to have been made at the instance of Mr. Shay or Mr. McKinley, but rather against their wish and will. This fact somewhat palliates the offense. But the writing of such a letter made the publication possible. Its untruthful statements are well calculated to create the false impression that the members of this court are on terms of undue intimacy with powerful litigants. Such a false impression is most mischievous, and must tend greatly to impair the confidence of the people in the integrity of the court. To attempt to create such an impression, even to a few individuals, is a serious violation.of duty by one upon whom the law enjoins the utmost fidelity and vigilance to preserve the court and its justices from even the appearance of evil.” (See also Falloon v. Superior Court, 79 Cal. App. 149, 248 Pac. 1057; Daily v. Superior Court, 4 Cal. App. (2d) 127, 40 Pac. (2d) 936.)
The ostensible purpose of respondent’s motion was to obtain from this court an order directing that its minutes and records be purged of entries which respondent alleges falsely represent that one of the Justices was present when in fact he was absent from the seat of government. The only issue tendered by the motion was: Do the minutes and records indicate that Mr. Justice Erickson was present when in fact he was absent from Helena? It is obvious that the major portion of the motion consists of wholly irrelevent and impertinent matters having no bearing on the question of the correctness of this court’s records. This is apparent upon the face of the motion and it was within the sound discretion of this court to forbid such a document from being spread upon its records. The court was empowered to deny the document a place in its files since if already filed, the court had the power to order it stricken therefrom as this court held, with Mr. Justice Morris’ concurrence in Nadeau v. Texas Company, 104 Mont. 558, 69 Pac. (2d) 586, 593, 111 A. L. R. 874. “It is elementary law, of course, that a court has the right to protect the integrity of its own records. Any court of record has that indispensable authority.” '(Gaston v. Collins, 146 Kan. 449, 72 Pac. (2d) 84, 87.) “A court of record has general authority over its own records, and they are within its custody and control, particularly seCfar as they pertain to the court’s business and so far as is essential to the proper administration of justice. * * * In exercising control over its records, a court has power to protect them from irrelevant, unimportant or superfluous papers, and to keep the records free from stain and scandal not pertinent to the cause and unnecessary to the decision.” (21 C. J. S., Courts, sec. 229, p. 430.)
In In re Huppe, 92 Mont. 211, 225, 11 Pac. (2d) 793, 798, this court said: “The obligation which an attorney assumes when he is admitted to the bar includes the maintenance of respect for our courts and judicial officers. This obligation is not discharged by merely observing a courteous demeanor in open court, but includes abstaining, in and out of court, from the use of insulting and libelous language, spoken, written or printed, or other offensive conduct toward judges personally or their official acts. This rule is generally applied only to official acts (Neel v. State, 9 Ark. 259, 50 Am. Dec. 209), such as stopping a judge on the street and abusing him because of his decision or conduct of a ease (People v. Green, 7 Colo. 244, 3 Pac. 374, 49 Am. Rep. 356), but should be extended to include all misconduct which tends to bring the courts into disrepute. The habit of criticising the motives of judicial officers in the performance of their duties, when the proceedings áre not against the officers whose acts and conduct are criticised, as in the case of a direct proceeding of impeachment, tends to subvert the confidence of the community in the courts of justice and in their administration, and when such criticism is made by an attorney, who is an officer of the court, he is guilty of professional misconduct (Matter of Rockmore, 127 App. Div. 499, 111 N. Y. S. 879).”
Section 9908, subdiv. 3, Revised Codes, provides: “The following acts or omissions, in respect to a court of justice, or proceedings therein, are contempts of the authority of the court: # * * Misbehavior in office, or other wilful neglect or violation of duty by an attorney * * *.” This provision was before the court in In re Shay, supra, wherein the court said: “If the persons thus immediately connected with the court do not observe proper respect toward it, or make statements derogatory to its character, the public regard and confidence would be much more affected than by similar behavior on the part of ordinary citizens not connected with the court or familiar with its proceedings. The court should have greater control of these persons than would be necessary with respect to ordinary citizens. It was for the purpose of giving to the court a means of protection against such attacks upon its character — attacks, as it were, from within — that this subdivision was enacted.”
“It is well settled that contempt may be committed by incorporating impertinent, scandalous, insulting or contemptuous language reflecting on the integrity of the court in pleadings, motions, notice of motions, affidavits, and other papers filed in court.” (Citing numerous authorities.) (Hume v. Superior Court, 17 Cal. (2d) 506, 110 Pac. (2d) 669, 674. See, also, In re Freebourn, 92 Mont. 585, 19 Pac. (2d) 1115.) In the early case of Brownell v. McCormick, 7 Mont. 12, 18, 14 Pac. 651, 653, this court said: “In presenting this case to this court, there has been conduct which we must severely condemn. The brief of the appellant contains language attempting to cast reproach upon the proceedings of the court below, and seeking to make it the object of contemptuous wit and ridicule. * * * No character of persons can have a deeper interest in preserving the dignity of the bench, or maintaining the courtesies of onr honorable profession, than the members of the bar, and they should act accordingly. This is one of the avowed purposes for which bar associations are formed, and one of the objects to which their efforts are directed. The language of the brief in this ease is reprehensible, as being in violation of the conduct and courtesy due from the bar to the bench, and will not be tolerated.”
In Owens v. Dancy, 10 Cir., 36 Fed. (2d) 882, 885, the court said: “Appellant caused the contemptuous pleading * * * to be brought into court and placed among the files in the ease to which he was a party for the court’s inspection and action thereon. This clearly constituted contemptuous conduct in the presence of the court. As to the facts, the motion filed by appellant was the whole case; and they presented a question of law.”
In Ex parte Bowles, 164 Md. 318, 165 Atl. 169, 173, the court said: ‘ ‘ The affidavit as a whole, directly and by necessary inference, impugns the integrity and honesty of the court, and constitutes an attack which the court could not pass without serious impairment of its dignity and standing as an instrument for the administration of justice. The contemptuous language is contained in an affidavit filed among the public records of the court, and directed to it. The court has, and must have, the inherent right and power to maintain and preserve its dignity and decorum, in order that its usefulness be preserved.” (Citing cases.)
So in the instant case, as to the facts, the motion presented by respondent and the letter mailed by him to all the lawyers in the state enclosing a mimeographed copy of the motion are the whole case. They present a question of law. They have not been explained. It is apparent that they were intended and calculated by respondent to question and attack the integrity of this court and to lessen, if not destroy, respect for the court. They were intended to embarrass, hinder and obstruct the administration of justice by the court and this they have done. They were calculated to intimidate the court and to coerce its action but in this they have failed. Accordingly we must find respondent guilty of the gffense of contempt of this court.
There is however a mitigating circumstance. Respondent is comparatively inexperienced in practice before this court. A reference to the actions taken by this court, of which we take judicial notice (sec. 10532, Rev. Codes), discloses that the court has dealt with only four prior actions or matters in which respondent has appeared as counsel. Aside from a pending case in which he appears as counsel for the Industrial Accident Board of the State of Montana, all of those cases involved attacks upon Chapter 47 of the Laws of 1941, by which the Legislative Assembly in effect granted military leaves of absence to certain public officers and employees entering the military service of the United States. The first such ease was Gullickson v. Mitchell, 113 Mont. 359, 126 Pac. (2d) 1106, wherein this court held the statute constitutional with Mr. Justice Morris dissenting. There respondent appeared as amicus curiae and attacked the constitutionality of the statute. The decision therein has been cited with approval and followed by the courts of California, Kentucky, Utah and West Virginia.
Next in State ex rel. Niewoehner v. Mitchell, 113 Mont. 617, 139 Pac. (2d) 545, respondent appeared both as relator and counsel. He there sought unsuccessfully a writ of mandate to compel the secretary of state to accept his nominating petition, presented on the last day for filing nominating petitions, in which he sought to be a candidate at the intervening general election of 1942 for the office of attorney general, which was not included in the governor’s election proclamation, and which in Gullickson v. Mitchell, supra, this court had held would not then be open to election because of the military leave allowed under Chapter 47, Laws of 1941, to John Bonner, the attorney general elected by the people in 1940 for a four-year term.
In the third case, State ex rel. Niewoehner v. Bottomly, 116. Mont. 96, 148 Pac. (2d) 545, respondent again was both relator- and of counsel. The action was in quo warranto against R. V. Bottomly, who had been appointed by the Governor under Chapter 47, Laws of 1941, to perform the duties of the office of Attorney General during the military absence of John Bonner, the officer elected in 1940 for a four-year term. In spite of this court’s decisions in Gullickson v. Mitchell, supra, and in spite of the fact that the office of attorney general did not appear upon the Governor’s election proclamation or upon the election ballots, respondent claimed the office by virtue of 124 write-in votes received by him out of some 170,000 ballots voted. The relator was again unsuccessful and again the court upheld Chapter 47, Laws of 1941, Mr. Justice Morris dissenting.
(Filed December 26, 1944.)
As this court, a half century ago, said speaking through Mr. Chief Justice Pemberton in State ex rel. Haskell v. Faulds, 17 Mont. 140, 42 Pac. 285, 289: “We have no desire to oppress the respondent. We understand and fully appreciate the delicate and unenviable position of this court in this peculiar case, as we are, in a sense, trying a matter that involves an offense against our own tribunal. We regret that we have felt called upon by a sense of duty to proceed in this matter at all. Only the belief that it was our duty to defend the court and its proceedings from unwarrantable, contemptuous, and calumnious attack has inspired and moved us in the matter. ’ ’
As above stated, we find the defendant guilty of contempt. It is the order of this court that in accordance with this finding of guilt the respondent, George E. Niewoehner, appear before this court for the pronouncement of judgment on the twentieth day of December, 1944, at two o’clock, p. m.
Note: On December 20, 1944, the Court pronounced the judgment imposing a fine of $250 upon respondent Niewoehner.
(See also Supplemental Opinion of Court at p. 474):
Dissenting opinion,
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MR. CHIEF JUSTICE JAMES T. HARRISON,
delivered the Opinion for the Court.
This is an appeal from a judgment for the defendant in an action to recover on a contract. Appellant sought to recover unpaid lease rentals due under a contract for the lease of a sign. Respondent counterclaimed for damages allegedly caused by the malfunction of the sign. The district court sitting without a jury, found for respondent on the claim for unpaid rentals and awarded respondent attorney’s fees. No damages were awarded on the counterclaim.
The issues on appeal can be simplified to two: Whether the evidence supports the findings of the lower court and the construction of a clause in the lease.
The sign in question was installed on the respondent lessee’s property pursuant to an oral agreement with the appellant on April 23, 1961. The sign was supposed to flash on and off. The sign kept breaking down and appellant was required to make numerous trips to repair it. According to respondent he would not sign the written lease because of the malfunctioning of the sign. For the same reason, respondent did not make any rental payments. After a conference with the appellant, respondent agreed to sign the lease if certain changes were made. Pursuant to this agreement appellant wrote on the front of the lease that “if present flasher does not work Western Neon will put a neon arrow on top of sign and have it flashing, and to satisfy lessee or Dairy Queen owner.” The lease was signed by respondent on January 12, 1962. At the same conference the parties agreed on a compromise amount of rent for 1961 because of the malfunctioning of the sign during that period.
The arrow called for in the lease was installed on May 19, 1962. According to respondent, on June 26, 1962, the rent due was paid and notice was given appellant that the sign was not satisfactory and appellant should come and get his sign. Appellant does not remember being given this notice. No further rental payments were made. Appellant made no move to reacquire the sign. This action was brought in 1966 to recover the rental payments for 1962, 1963, 1964 and 1965.
Turning to the first issue, whether the evidence supports the findings of the district court. The addition of the clause set out above makes this a “satisfaction contract.” If respondent was dissatisfied and this was communicated to appellant, no rental payments would be due. It was appellant’s own option that the sign remain on respondent’s property. Appellant contends that the dissatisfaction must be in good faith and that this was not proven. The question of good faith is for the trier of fact and this court will only review to see if there is substantial evidence in the record to support the findings. Rozan v. Rosen, 150 Mont., 121. 431 P.2d 870, 24 St. Rep. 666.
The respondent testified that he gave notice to take the sign away. This was the only evidence on this question, and the lower court apparently accepted it as true. There is substantial evidence that the sign did not work properly and this had been true from the time it was installed. The respondent testified that the arrow was not large enough to attract the attention which would have been attracted if the sign flashed as originally contemplated. Respondent did not unreasonably delay giving notice to appellant after the arrow called for in the lease was installed. Although there is evidence to the contrary we find there is substantial evidence that respondent’s dissatisfaction was in good faith.
Appellant next contends that even if notice was given it was not timely for a provision in the lease states: “It is agreed by the User that after the display has been installed and operating for five (5) days, unless otherwise notified by the User, the Owner will consider the Display accepted in accordance with the terms of the agreement.” By this language notice must be given within five days after the display has been installed. But the sign was installed for approximately 9 months before the contract was signed. Thus, that provision would have no effect. The provision calling for lessee’s satisfaction could not be subject to the above condition since at the time of adding the satisfaction clause the 5 days had long passed.
Further, we do not find it logical to say that the provision should apply to the addition of the arrow for that was but a repair made on the sign.
Since the lease called for payment of attorney’s fees to the prevailing party the award of attorney’s fees to respondent was proper and the judgment is affirmed.
ME. JUSTICES HASWELL, ADAIB, CASTLES and JOHN CONWAY HABBISON, concur.
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MR. JUSTICE METCALF:
This is an original proceeding by a resident and taxpayer of Lewis and Clark county on behalf of himself and other taxpayers of Lewis and Clark county, praying for a writ enjoining and restraining the defendant Lewis and Clark county and its officers from further appropriating or expending any of the tax money of the county for grand jury purposes or expenses of any kind or character whatever.
Two questions are raised by the relator’s petition:
1. The relator alleges that the appointment of a special prosecutor to attend and advise the Lewis and Clark county grand jury is illegal and that his presence before the grand jury has vitiated all indictments returned by the grand jury, thus causing useless expense to the taxpayers of Lewis and Clark county, and that if the special prosecutor is permitted to continue to meet with and advise the grand jury additional expenses will be incurred and more of the funds of the county wasted. This question is discussed in State ex rel. Porter v. District Court, 124 Mont. 249, 220 Pac. (2d) 1035.
2. That the grand jury, called on July 7,1949, and impaneled on July 25, 1949, ceased to exist as a valid and legal grand jury at the expiration of the term of court in which the grand jury was called.
This court accepted jurisdiction of the action and issued an order for the defendants to show cause why the relief prayed for should not be granted.
The defendant Lewis and Clark county and its officers appeared, represented by the county attorney, his assistants and the special prosecutor. The defendants demurred to the relator’s petition on the grounds that this court has no jurisdic tion over the persons of the defendants or the subject matter of the action and that the petition does not state facts sufficient to constitute a cause of action. A motion to quash the order to show cause and dismiss the proceedings was also filed, making the same objections made by the demurrer, and in addition contending'that all the issues raised were determined adversely to the plaintiff in Porter v. Knapp et al., 123 Mont. 614, 214 Pac. (2d) 765. That case was dismissed upon plaintiff’s motion without prejudice and is not decisive of any issue there raised. Other objections were made which are not necessary to discuss either because of the disposition made of this case or because they were discussed in the case of State ex rel. Porter v. District Court, No. 8987, supra.
Without prejudice to the consideration of defendant’s demurrer and motion to quash the order and dismiss the proceedings, the defendants were ordered to file an answer to the petition on the merits.
The necessary facts as alleged in the petition and admitted by the answer are: The grand jury was called on July 7, 1949, by order of both judges of Lewis and Clark county. It was regularly organized and impaneled and properly instructed and began its deliberations July 25, 1949.
On December 2, 1948, the district judges of the first judicial district made and entered an order fixing the terms of court for Broadwater and Lewis and Clark counties for 1949 and on December 2, 1949, a like order was made fixing the terms of court for 1950.
The order for the 1949 terms of court is in part:
“In the Matter of Fixing Terms of Court for the Year 1949.
Order
“Pursuant to the provisions of Section 8826, Revised Codes of the State of Montana, 1935, terms of court for the County of Lewis and Clark, in the State of Montana, are hereby fixed for the year 1949, as follows:
TEEMS FIEST DAY
January 10th
April 11th
June 13th
September 12th
“Each term shall continue until the opening of the succeeding term; it being the intention hereby that the Court in Lewis and Clark'County, Montana, shall always be in session for the transaction of business, except on legal holidays and nonjudicial days.”
The order for the 1950 terms of court is the same except that the terms are:
TEEMS FIEST DAY
January 16th'
April ■ 17th
June 19th
September 18th
The grand jury has been in continuous session from July 25, 1949, until the present time except for intermittent recesses pursuant to the vote of the members.
The defendants’ answer denies that the plaintiff'is the real party in interest and that there has been any financial loss to the taxpayers of Lewis and Clark county from the grand jury or that there will be if the grand jury is permitted to continue. Eecords of Lewis and Clark county filed with the petition show that expenses of the grand jury through May 1950 amounted to $24,652.52. A signed statement of the two judges of the district court dated December 13, 1949, declared an emergency to exist and stated that $15,000.00 would be necessary thereafter to meet the expenses of the grand jury. On December 19th, the same district judges withdrew the resolution declaring an emergency, and said, “such resolution was presented and approved by this Court solely for the purposes of facilitating the matter of keeping books and records by the county clerk and in the office of the board and not because any emergency budget or appropriation was deemed necessary for the purpose of obtaining money for the expenses of the operation of said Court, or any agency thereof.” The district court then ordered expenditures for the court or any agency incurred by the court to be paid without regard to any emergency appropriations.
As in State ex rel. Porter v. District Court, No. 8987, supra, 17 members of the Lewis and Clark county bar petitioned to appear as amici curiae and were permitted to file briefs and argue the cause.
The demurrer and" the motion to dismiss the petition challenge the jurisdiction of this court to issue a writ of prohibition or any writ directed against the grand jury.
The writ of prohibition is one of the remedial writs which this court is empowered to issue under the Montana Constitution and statutes. Art. VIII, sec. 3, Constitution; R. C. M. 1947, sec. 93-214; State ex rel. Scharnikow v. Hogan, 24 Mont. 379, 62 Pac. 493, 51 L. R. A. 958. The writ of prohibition is defined by section 93-9201, R. C. M. 1947, as a writ that “arrests the proceedings of any tribunal, corporation, board, or person, whether exercising functions judicial or ministerial, when such proceedings are without or in excess of the jurisdiction of such tribunal, corporation, board, or person.” The writ may be issued to end litigation and save expense. State ex rel. King v. District Court, 107 Mont. 476, 86 Pac. (2d) 755. A writ of prohibition was found to be the proper remedy where a challenge to a jury panel was interposed upon the ground that the persons composing the array were improperly and illegally attending upon the court and the court was without jurisdiction to select a jury. State ex rel. Clark v. District Court, 86 Mont. 509, 284 Pac. 266. A taxpayer has sufficient beneficial interest to bring such a suit. Milligan v. Miles City et al., 51 Mont. 374, 153 Pac. 276, L. R. A. 1916C, 395.
A grand jury is a part of the court and must conduct itself in complanee with the statutes and Constitution in the same manner as any other part of the judicial system. 38 C. J. S., Grand Juries, see. 1 b, page 981; 24 Am. Jur., Grand Jury, sec. 2, p. 832. The grand jury is subject to control by this court’s writ of prohibition when it is acting without jurisdiction or in excess of jurisdiction. State ex rel. Hall v. Burney, 229 Mo. App. 759, 84 S. W. (2d) 659; Walton v. State, 147 Miss. 851, 112 So. 790.
The grand jury was called, impaneled and began its deliberations during the June 1949 term of the district court of the first judicial district in and for Lewis and Clark county. That term ended on September 11, 1949, and the September term began September 12th.
The Montana Constitution, Art. VIII, sec. 17, provides: “ * * * In each district where two or more counties are united, until otherwise provided by law, the judges of such district [court] shall fix the term of court, provided that there shall be at least four terms a year held in each county.”
Section 93-315, B. C. M. 1947, provides for the terms of court as follows: “ * * * In each district where two or more counties are united the judge thereof must fix the term of court in each county in his district, which must be held at the county seat, and there must be at least.four terms a year in each county. The judge of such district court must, within ten days after the first day of December of each year, make an order which must designate the times at which the terms of court are to be held in each county in his district during the coming year, beginning with the first day of January following such order *•**.”
In compliance with these constitutional and statutory provisions the district judges of the first judicial district, comprising Lewis and Clark and Broadwater counties, fixed the terms of court in the above orders.
It is the petitioner’s contention that the grand jury called during the June term of court was discharged by operation of law on September 11,1949, at the expiration of that term.
The only statutory regulation of the length of term of the grand jury is section 94-6314, R. C. M. 1947, which directs that the grand jury “* * ® On the completion of the business before them, they must be discharged by the court; but, whether the business is completed or not, they are discharged by the final adjournment of the court, or by order of the court.”
The case of State ex rel. Clark v. District Court, 31 Mont. 428, 78 Pac. 769, 3 Ann. Cas. 841, was an application for a writ of prohibition involving the validity of an indictment returned by a grand jury after a new jury list was prepared by the jury commission as required by section 93-1406, R. C. M. 1947. It. was there contended that after the new jury list was returned members of a grand jury drawn from the old list could no longer serve and a new grand jury must be drawn from the current list. The holding was that so long as jurors, grand or trial, were qualified when they were drawn they could continue to serve. In so far as trial jurors were concerned this has been altered by amendment so that at the present time a trial jury may be held over but 90 days after the new jury list is returned. That statute, 93-1406 as amended by Chapter 4, Laws of 1947, says: “* * * they shall continue to serve as jurors, if the business of the court requires the attendance of a jury, for a period not exceeding ninety (90) days; provided further, however, notwithstanding such limitation of service, a jury composed of such jurors, duly impaneled to try any cause, shall continue to serve in such cause until discharged by the court * * *.” The quoted portion pertains to trial juries who are liable for service during any term of the year and may be held over for ninety days after the return of the new jury list.
But grand jurors serve until “discharged by the court” or “whether the business is completed or not, they are discharged by the final adjournment of the court.”
The grand jury has not been discharged by the court and it cannot discharge itself. We are concerned then with the meaning of “discharged by the final adjournment of the court” and whether this grand jury has been so discharged.
Our system of terms of court grew up in England where there were four terms a year. Each term began and ended on a certain date so that there were but ninety-one days in each year that courts were in session. In America the business of the courts has increased to such an extent that courts are in constant session. Many states, including Montana, still have terms of court fixed by the Constitution or by statute. California by its Constitution of 1879 abolished terms of court. But the description of how the California courts operated prior to the abolition of terms of court is revealing as to the meaning of “final adjournment of the court” as used in both Montana’s and California’s statutes.
The case of In re Gannon, 69 Cal. 541, 11 Pac. 240, 241, cited and relied upon in State ex rel. Clark v. District Court, supra, was one where the contention was that a grand jury impaneled during the July session in 1885 had not authority to examine a witness summoned before it in March 1886.
The court said: “The basis of the contention is that the superior court in which the jury was convened works under a system of terms and final adjournments of the court, by which its jurisdiction as a court to transact business is temporarily suspended by the end of its term, or by the final adjournment of the court; and until the reconvening of the court at the commencement of a new term, its authority to hear and determine causes ceases, and the authority of a jury in attendance upon the court ends also, and the body is dissolved by law. Such a system was, undoubtedly, part of the constitution of the courts which formerly existed in the state before the adoption of the present constitution; and many of the provisions of the Codes by which the system was established are still to be found upon the statute books. But the constitution of 1879 abolished, not only the former courts, but also the system of terms and final adjournments under which the judges thereof opened courts for the transaction of judicial business, and substituted superior courts, which it ordained should be ‘always open,’ legal holi days and non-judicial days excepted, (Article 6, sec. 5, Const.) and this command of the constitution was enforced by the legislative enactments ' [of sections] 73, 74, Code Crim. Proc. * * *”
Under the common law the term of service of the grand jury ended at the expiration of the term of court in which it was called. “In the absence of statute to the contrary, the grand jury usually serves during the entire term of court at which it has been summoned to attend, and, unless sooner discharged by the court, does not cease to be a legally constituted body until the expiration of that period. In the absence of statutory provision to the contrary, the life of the grand jury terminates on the expiration of the term for which it is summoned. * * * ” 38 C. J. S.j Grand Juries, sec. 32, page 1022.
“The right of a grand jury to remain in session does not as a general rule extend beyond the final adjournment of court for the term, and statutes sometimes expressly declare that on final adjournment of the court the grand jury is discharged. Such statutes have been held to be declaratory of the common law.” 38 C. J. S., Grand Juries, sec. 33, page 1026.
The very language of section 94-6314 indicates that the legislature intended the grand jury to serve for a limited period. The grand jury must be discharged by the court when its business is completed. It may be discharged before its business is completed by order of the court, but whether its business is completed or not or whether it is ordered discharged by the court or not it is discharged by final adjournment. At common law that meant final adjournment for the term. That was the contemporaneous construction of the phrase when it was adopted by Montana. So that even though we no longer strictly adhere to the common-law rules for terms of court we must look to them to ascertain the -meaning of the statute designating the period of service for grand juries. Where there is no express command by statute the business of the court continues from term to term. But where the term is used as a measure for the period of service it is still recognized and applied to make effective such statutes.
There are eases that hold that a grand jury composed of qualified jurors, duly impaneled, may continue to hold over after the term as a “de facto” grand jury and the validity of such a grand jury cannot be questioned on a motion to set aside the conviction or writ of habeas corpus or other collateral proceedings. In re Gannon, supra, was such a case and the question of a de facto grand jury was there discussed. State ex rel. Clark v. District Court was a collateral attack. State ex rel. Dunn v. Noyes, 87 Wis. 340, 58 N. W. 386, 27 L. R. A. 776, 41 Am. St. Rep. 45, is another example. People v. Morgan, 133 Mich. 550, 95 N. W. 542, applied the de facto theory under a Michigan statute that is quite different from Montana’s.
But in the instant case we are confronted with a direct attack on the validity of the grand jury. The petitioner does not seek to set aside any of the indictments that were found by the grand jury after he alleges it was discharged by operation of law. He is attempting to put an end to the alleged illegal continuation of the body itself. It is immaterial whether or not indictments found by a “de facto” grand jury would be held valid or convictions affirmed. On this direct attack the only question is whether the law justified the continuance of a grand jury beyond the term in which it was called.
In Shenker v. Harr, 332 Pac. 382, 2 A. (2d) 298, 299, the Pennsylvania statute permitted the court to retain the grand jury “ ‘for an additional week’ ” if the business of the court required it. 17 P. S. sec. 1351. This statute was held to be directory only and did not require the discharge of the grand jury if the investigation upon which they were launched was unfinished. In that case the court retained jurisdiction while permitting the grand jury to complete its investigation in which it was engaged when the term came to an end but not to go into any new matter. The court said: “A tendency to establish anything approaching permanency in a grand jury is repugnant to our scheme of government and subversive of individual rights. We are of opinion that the continuance in session of the grand jury which is the subject of the present litigation has about reached its permissible limit, that the investigation which it is conducting should be promptly concluded. * * * ’ ’
A like declaration was made by the Mississippi court in Walton v. State, supra: “* * * the Constitution intended to provide for a legal method of establishing suitable lists of jurors, and drawing from such lists * * * at each term of the court. These jurors were to be taken from the body of the people. This is not only necessary to secure the full right of jury trial, and to secure the right of having a grand jury to pass upon the sufficiency of the evidence, to constitute probable cause, to warrant a person being placed on trial for a felony. Perpetual terms of the court were not contemplated, neither were perpetual juries, or professional jurors.” [147 Miss. 851, 112 So. 792.]
Jury service is one of the major responsibilities of the citizen. When summoned he must lay aside his work, often at a considerable personal sacrifice, and serve his state. Except for military service, jury duty is the most demanding of the personal services required of a citizen. Jurors are drawn from the body of the taxpaying population. All qualified citizens may be called. It was never intended that this arduous duty be performed by a small group over the entire year. To require a jury to be in attendance for such a long period is an injustice to the juror and the accused alike.
North Dakota’s statute on the term of the grand jury is similar to Montana’s. Section 10655, Comp. Laws 1913, N. D., provides: “On the completion of the business before them, or whenever the court shall be of opinion that the public interests will not be subserved by a further continuance of the session, the grand jury must be discharged by the court; but whether the business is completed or not, they are discharged by the final adjournment of the court.”
The North Dakota Supreme Court said that the above section “is in fact a re-enactment of the common-law rules respecting grand juries.” Under this section the North Dakota court ordered a grand jury that continued in session beyond the end of the term discharged. State ex rel. Jacobson v. District Court, 68 N. D. 211, 277 N. W. 843, 849.
A further analysis of cases from other jurisdictions is unnecessary. The uniform rule is that in the absence of statute to the contrary the grand jury is discharged by operation of law at the end of the term of court for which it was called. Montana’s statute says that they are discharged by the final adjournment of the court, whether the business is completed or not. This is mandatory. Final adjournment of the court means the final adjournment for the term. In re Gannon, supra; Loud v. Pritchett, 104 Ga. 648, 30 S. E. 870.
When the September term began on September 12, 1949, the June term was automatically adjourned. Walton v. State, supra.
The final adjuornment of the court was at the expiration of the June term on September 11,1949. The grand jury was discharged by operation of law on that date.
It is ordered that a peremptory writ issue forthwith.
MR. CHIEF JUSTICE ADAIR and ASSOCIATE JUSTICES FREEBOURN and BOTTOMLY concur.
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DECISION
The application of the above-named defendant for a review of the sentence of ten years, imposed on February 7, 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 manslaughter (shooting one Terry Dunlap with a .22 semiautomatic during or after a quarrel) punishable by not more than 10 years imprisonment. True, the sentence could have been less, but as we have said before in State v. Brecht and State v. Barton, both decided this day, “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.). Since the presumption is that the sentencing judge was correct in his determination (State v. Brecht and State v. Barton, supra), we are unable to say from anything presented to us in this case that the imposed sentence of 10 years with 125 days jail time credit with defendant presently eligible for parole consideration in December, 1970, was not proper, reasonable, and sufficiently lenient, the crime and the sentencing goals kept in mind.
Any contention of defendant that the killing was justified or excusable, or that the defendant was not otherwise 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 of this judgment so far as it relates to the sentence imposed * * *.” Section 95-2503, R.C.M.1947.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paúl G. Hatfield, Sid G. Stewart.
|
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HONORABLE ROBERT KELLER,
The sitting in place of MR. CHIEF JUSTICE JAMES T. HARRISON, delivered the Opinion of the Court.
Appellant, defendant below, was convicted of the crime of arson in the first degree and arson with intent to defraud an insurer, by jury, in the district court of the twelfth judicial district of the State of Montana, in and for the County of Hill, before the Honorable Bernard W. Thomas.
Appellant’s residence, located six miles south of Havre, Montana, was substantially destroyed by fire on the night of May 14, 1971. The Havre city fire marshal, Richard D. Habeger, who was also a special deputy state fire marshal, inspected the premises on May 15,1971, took several pictures, but was unable to make a determination as to the cause of the fire. The State Fire Marshal’s Office, at the instigation of the appellant’s fire insurance company, called Habeger and requested that he go back to the premises for a more detailed inspection. Habeger returned on May 21, 1971, took 15 or 20 photographs and collected samples from seven.different holes burned in the floor. Samples from one of the burned holes, adjacent to the floor furnace, were placed in a two pound coffee can, ultimately admitted into evidence as exhibit D; samples from six other holes, further removed from the floor furnace, were placed into another two pound coffee can, and ultimately marked as exhibit E, but refused admission into evidence at the trial. Habeger mailed both exhibits to the alcohol, tobacco and firearms laboratory in Washington, D.C., for examination and report on May 24, 1971. He did not receive an immediate reply.
In August, 1971, appellant encountered Habeger at the Hill County Fair and asked if there had been any results from the investigation. Habeger replied in the negative. In March, 1972, appellant settled his claim with his insurance company, decided to tear down what was left of the residence, and then rebuild. Finding no one to tear down the building, appellant decided, to burn down the remainder of the building. He ■cleared the burning with the City of Havre fire department and with Hill County, but not specifically with Habeger, and in late May 1972, burned down the remainder of the building.
The samples had been received by the alcohol, tobacco and firearms laboratory in "Washington, D.C., tested on June 16, 1971, and the results, showing the presence of accelerants, mailed back to Habeger. Unfortunately, at the time the results were returned, the Havre city fire department was moving its residence and Habeger was on vacation. The letter with the results was deposited with some junk mail in a cubbyhole in a desk in the new firehall where it lay unnoticed until late September, 1972, some 15 months later, when Habeger was looking for some material for Fire Prevention Week. He immediately turned all the results of this investigation over to the county attorney for Hill County and this prosecution followed.
Appellant’s contentions are as follows:
1. That the court erred in refusing to dismiss the charges on the grounds of prejudicial delay;
2. That the court erred in admitting Exhibit D;
3. That the court erred in admitting the evidence from the forensic laboratory.
Addressing appellant’s first contention, there is no question but that a delay in time between the commission of an offense and the commencement of the prosecution, by the filing of an information termed “preindictment delay” can be the denial of due process. United States v. Marion, 404 U.S. 307, 92 S.Ct. 455, 30 L.Ed.2d 468. Mere delay, in and of itself, is not sufficient. There must be either actual prejudice to the conduct of the defense, or that the State intentionally delayed to gain some tactical advantage over appellant, or to harass him. United States v. Marion, supra.
In the instant case, appellant concedes in his brief that mere delay is not prejudicial in itself and that the delay in this instance was neither intentional nor purposeful. He does contend, however, that by the time he was put on notice he was; the subject of criminal action, the physical evidence had been destroyed, and he was substantially prejudiced thereby.
At a pretrial suppression hearing and at the trial, appellant called as a witness a chemist from Northern Montana College who testified that by the use of a gas chromatograph he-could determine whether or not samples from other portions, of the floor contained the same components that chemists, in the alcohol, tobacco and firearms laboratory in Washington, D.C., found in the sample taken from the holes that had burned through the floor of the house. Evidence had been introduced by appellant that a considerable amount of kerosene smoke-had been permitted to collect on the underside of the floor from thawing frozen pipes in the cellar on a number of occasions), and that there was inlaid linoleum on the floor of the house, held in place by either asphalt or some other petroleum-based compound. Appellant’s chemist testified that either, or both of these conditions could have given rise to a finding by the State’s chemist that there were accelerants present. He would have ground up samples from the floor, placed them in an oven under heat, and analyzed the gases.
The chemist from the alcohol, tobacco and firearms laboratory used gas chromatography but with a different approach. When the samples were first collected by the deputy state fire marshal and placed in coffee cans, plastic lids were placed over the cans and then taped into place. When the government chemists received these cans they inserted a syringe-through the plastic lid into the can, withdrew the vapors then existent, and used the gas chromatography upon the vapors.. They found gasoline or naptha present in both cans. These-were defined as accelerants, highly volatile, and with an exceptionally low flash point. They further testified that if a volatile petroleum distillate had been placed upon wood, and then stored in the open, it would not only gradually evapo rate, but after a period of several months, there was no reliable technique known to detect and identify the petroleum distillate. In addition, they testified that the sooty residue from the kerosene burn and the asphalt used to set the linoleum were not volatile petroleum distillates.
In other words, the report from the government chemist was received in Havre about the end of June, 1971, more than a month following the fire. All that a chemist for the appellant could have found at that date was that he could find no presence of accelerants, which would be expected.
On the other hand, the samples examined by the government ■chemist, offered as State’s exhibits D and E, were still intact, still sealed, and still capable of examination. For reasons not shown in the record, appellant never asked that his ■chemist be permitted to examine those to show that the ■government chemists were in error, if they were. In other words, the only evidence available to the chemists for the state was still available for the chemists for the appellant.
The trial court was correct in holding that there was no ■actual prejudice to the appellant occasioned by the preindictment delay.
Appellant’s second contention is that the court erred in admitting exhibit D, one of the coffee cans containing samples from one of the holes burned through the floor. The ■contention is without merit, both factually and legally.
Deputy state fire marshal Habeger testified that he took all of the samples from each of seven holes, that he put two ■or three samples from the first hole in one can (exhibit D) and then he put the remaining samples in the second can (State’s proposed exhibit E). He made a sketch of the premises and on the sketch indicated where each of the seven holes was. The first hole was near the floor furnace and upon Habeger’s sketch he indicated “point of origin”. Hole number one was never established as the “point of origin” by any proof; in fact, Habeger testified that he believed all seven holes to be simultaneous points of origin. Appellant’s counsel continued to refer to hole number one as the point of origin, and the transcript is clear that appellant’s counsel became confused by Habeger’s testimony and believed that Habeger had placed samples from the first three holes in the first can and samples from the remaining four holes in the second can. Since Habeger could not establish which holes had accelerants and which ones did not, defense counsel convinced the trial court that the samples in the second can were commingled, some coming from holes that had accelerants and some coming from holes that did not. The same argument is being used here to show that the same situation was true with the first can of samples. The trial court was not confused by the testimony and knew that the samples.in the first can, exhibit D, came from only one hole, the first hole, the “point of origin” hole.
The only error committed by the trial court, and it was harmless, was in excluding State’s proposed exhibit EL There should have been no accelerants in that house and the deputy state fire marshal took samples from that house and there were accelerants in both samples. What possible difference could it make, under the facts in this case, which hole had the accelerants? The State was in a position to prove that there were accelerants in at least two different places and exhibit B should have been admitted.
Appellant’s third contention is that the court erred in admitting the evidence from the forensic laboratory in two particulars. Appellant’s first point is that once the samples reached the forensic laboratory in Washington, D.C., there were several people who had access to the laboratory and therefore the custodial chain of evidence was not established.
The samples in question were collected by the deputy state fire marshal, packaged by him and mailed by him to the alcohol, tobacco and firearms laboratory in Washington, D.C. One of the chemists from that laboratory testified that he received the package, that it was kept in that laboratory •and the security room, it was examined by one of the chemists ■from that laboratory who also testified and it had keen kept in "the evidence room at that laboratory until the two chemists brought the samples to Montana. This is all that is required for a prima facie case. The State must identify the particular ■exhibit as relevant to the criminal charge and must show ■prima facie that no alteration or tampering with the exhibit has occurred. State v. Wóng Fong, 75 Mont. 81, 241 P. 1072. ■Once that has been done, the burden of proving alteration shifts to appellant. State v. Fitzpatrick, 163 Mont. 220, 516 P.2d 605.
Appellant additionally contends that the State failed fo use the best evidence in proving the results of the gas ■chromatograph; that the chromatogram record itself should have been introduced and proof made of the standards utilized "by the chemist in interpreting the chromatogram. The contention has merit, technical though it may be, but the complaint came far too late. The chemist who actually examined the samples testified that he readily detected accelerants by the use of the gas chromatogram and that there was a marked, •distinguishable difference between these accelerants and the ■other nonvolatile petroleum distillates that the appellant contended were also in the floor. His testimony was lengthy and technical but that is the thrust of it. Following appellant’s ■case in chief, the State called the second chemist from the forensic laboratory in Washington as its final rebuttal witness, the chemist who was in charge of the laboratory but who did not actually do the examination of the samples. Defense counsel realized during the cross-examination of this witness on rebuttal that he had overlooked both the chromatogram record and the standards, established that both were in existence, then moved to strike all of the testimony of both chemists on the grounds that during their testimony of the State’s case in chief, they had not used the best evidence in explaining the results of the gas chromatograph test. The trial judge properly overruled the objection. Neither was relevant to this particular witness’s testimony for he testified as a custodian of the laboratory and was in no position to testify as to what the other chemists utilized for his testimony relative to the examination of the samples. As stated before, the objection came far too late.
For the foregoing reasons, judgment of the trial court is affirmed.
MR. JUSTICES DALY, CASTLES, HASWELL and JOHN C. HARRISON, concur.
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MR. JUSTICE ADAIR
delivered the Opinion of the Court.
This is an appeal by R. B. Fraser and Rosabelle Fraser, husband and wife, from a judgment for $1,115.08, together with interest and costs, entered against them and in favor of F. J. Bucher, as Sheriff of Fergus County, Montana, for expenses incurred by such sheriff in keeping and caring for more than four hundred head of livestock, consisting of cattle and horses, as well as considerable other property levied upon, attached, kept and cared for by the sheriff at the special instance and direction of the judgment debtors.
The instant appeal, No. 9987, is the sixth separately numbered proceeding filed in the supreme court since April 1954 which involves some particular phase or outgrowth of district court civil suit No. 28,056, originally commenced in the district court for Yellowstone County, Montana, on February 18, 1954, and subsequently transferred to the district court for Fergus County where the cause was given No. 19805. See (1) Fraser v. Clark and Owens, No. 9435, decided July 8, 1954, 128 Mont. 160, 273 P.2d 105; (2) State ex rel. Clark & Owens v. District Court, No. 9494, decided January 20, 1955, 128 Mont. 526, 278 P.2d 1000; (3) Fraser v. Clark & Owens, No. 9522, decided April 5, 1955, 129 Mont. 56, 282 P.2d 459; (4) State ex rel. Fraser v. District Court, No. 9529, decided May 4, 1955, 128 Mont. 625, 627, 283 P.2d 223; (5) Central Montana Stockyards v. Fraser, No. 9739, decided December 19, 1957, 133 Mont. 168, 320 P.2d 981, and (6) the instant appeal, supreme court No. 9987, Bucher v. Fraser et ux., decided August 19, 1960, 138 Mont. 83, 354 P.2d 1042.
Facts. On February 18, 1954, R. B. Fraser and Rosabelle Fraser, by and through their lawyer, Sterling M. Wood, Esq., of Billings, Montana, commenced in the district court for Yellowstone County, Montana, civil suit bearing Yellowstone County No. 28,056, against E. C. Clark and Evan Owens, seeking and demanding judgment for $28,500 with interest thereon besides interest on the larger sum of $106,500 claimed by the Frasers to be owing to them by Clark and Owens.
Also, on February 38, 1954, at the time of .issuing summons in said civil suit No. 28,056, the plaintiffs Fraser, by and through their counsel, Sterling M. Wood, Esq., obtained a writ of. attachment out of the district court for Yellowstone County which writ was directed and delivered to the sheriff of Fergus County, Montana, namely, F. J. Bucher, which writ, inter alia, did ‘1 command you the said Sheriff, that you attach and safely keep all property of said Defendants within your county, not exempt from execution, or so much thereof as may be sufficient to satisfy the said Plaintiffs’ demand * * # unless the said Defendants deposit the amount of Plaintiffs’ demand, or give you security * * * in an amount sufficient to satisfy such demand, besides cost”.
On the following day, February 19, 1954, Sterling M. Wood, Esq., as counsel for R. B. Fraser and Rosabelle Fraser, the plaintiffs in civil suit No. 28,056, signed and caused to be delivered to Fred J. Bucher, as sheriff of Fergus County, a typewritten letter, being the plaintiff Bucher’s Exhibit “A” herein, which, omitting the printed letterhead of Attorney Wood’s law firm, reads:
‘ ‘ Billings, Montana
February 19, 1954
“Mr. Fred J. Bucher, Sheriff
Fergus County
Lewistown, Montana
“Dear Sir:
“Enclosed please find, in Cause No. 28056 instituted in the District Court of the Thirteenth Judicial District of the State of Montana, in and for the County of Yellowstone, entitled R. B. Fraser and Rosabelle Fraser, Plaintiffs, vs. E. C. Clark and Evan Owens, Defendants, the following papers, to-wit:
“1. Original summons and original writ of attachment;
“2. Two copies of summons, complaint and writ of attachment.
“This letter and the attached papers above-mentioned, will be delivered to you by Mr. R. B. Fraser, one of the plaintiffs in said Cause No. 28,056. We request that you immediately serve the papers upon the two defendants, who are residents of your county, by delivering to each of them a copy of the summons, complaint and writ of attachment.
“We further request that you levy the writ of attachment upon sufficient property of the defendants in Fergus County that will be reasonably sufficient to satisfy the demands of the plaintiffs in this lawsuit. Mr. Fraser will go with you in person to help you in making the levy and will point out to you cattle, automobiles and, perhaps, other property to be levied upon and taken under the writ. Your immediate attention to this matter is requested.
“When the papers have been served and a levy made, please return the original summons and the original writ to this office, with your usual certificates endorsed thereon, together with a statement of your fees, and we will promptly remit in payment of the same.
“Yours very truly,
“SMW:LL [Signed] Sterling M. Wood
Enel. 8 Sterling M. Wood”
On February 20, 1954, Sheriff Bucher, accompanied by R. B. Fraser, and pursuant to the command of the writ of attachment, and the above express request and directions of Attorney Sterling M. Wood, journeyed to the ranch whereon the property to be attached was located, being approximately 35 miles distant from Lewistown, Montana, where R. B. Fraser pointed out the particular property that he desired attached and which Sheriff Bucher thereupon levied upon, seized, attached and thereafter safely kept and held, being virtually all of the personal property of E. C. Clark and Evan Owens, which property was then and there of the approximate value of $80,000 all located in Fergus County, and consisting, inter alia, of a large amount of ranch machinery and equipment, motor trucks, automobiles, work and saddle horses and some 394 head of high grade Hereford cattle, following which levy and seizure the said sheriff made due return thereof as appears from an itemized list of the attached property affixed to and filed with the original writ of attachment so issued.
Following his execution of the writ, Sheriff Bucher hired a man, whom he deputized, to remain with and care for the livestock so levied upon and held and thereafter on February 27, 1954, R. B. Fraser paid to the sheriff the sum of $200 to apply on the expense thus incurred and to be incurred and again on March 8, 1954, Fraser paid to the sheriff an additional $150 on such attachment costs and expenses.
Sheriff Bueher asserts that the foregoing payments were made pursuant to an agreement made with Fraser that he, Fraser, would pay all expenses, costs and outlays made in safely keeping and caring for the attached property.
On the other hand, R. B. Fraser asserts that it was his understanding that the sheriff was to obtain an order of court for the hiring of a keeper or keepers for the herd of cattle so seized, levied upon, attached and kept.
The record shows that on March 17, 1954, Sheriff F. J. Bueher, accompanied by his lawyer, J. E. McKenna, Esq., journeyed from Lewistown to Billings, Montana, with the intent and purpose to there present to District Judge Guy C. Derry, before whom said civil suit bearing Yellowstone County district court No. 28,056, was then pending, a typewritten petition for a court order for the hiring of a keeper or keepers for the cattle so held under attachment and that after inspecting the petition, Judge Derry telephoned Sterling M. Wood, as counsel for the Frasers, following which telephone conversation, Attorney Wood presented himself at the Yellowstone County courthouse where he talked with both Sheriff Bucher and with the latter’s counsel, J. E. McKenna, Esq., regarding the necessity for obtaining such court order.
Both the sheriff and his counsel represent that at that time and place, Attorney Wood informed them that he did not desire to have a court order made and entered for the hiring of a keeper or keepers; that the manner in which the seized cattle were then being handled and eared for was satisfactory and that his client, R. B. Fraser, would pay all expenses incident to such attachment.
Attorney Wood denied these representations of Sheriff Bucher and of his counsel, J. E. McKenna, Esq.
Notwithstanding such denial, it is quite significant that following such meeting with Attorney Sterling M. Wood at the courthouse in Billings, Sheriff Bucher and his lawyer, Mr. Mc-Kenna, returned to Lewistown without filing, in the district court for Yellowstone County, in said civil action No. 28,056, their already prepared typewritten petition for the appointment of keepers for the cattle so held pursuant to the mandate of the writ of attachment so issued on February 18, 1954.
On August 6, 1954, and after the cause bearing Yellowstone County No. 28,056 had been transferred to Fergus County where it was given Fergus County No. 19,805, the district court for Fergus County, on the petition of E. C. Clark and Evan Owens, the defendants in said civil suit, made and entered an order releasing and discharging from the attachment 4 International Tractors, 1 Ford with Wagoner Fork, 3 International Mowers, 4 hay racks, 5 sections of harrow, 1 trailer, 1 Dodge car, 1 Chevrolet Sedan, 1 Ford truck with stock rack, 1 jeep, 2 work horses, 9 saddle horses, and 36 head of dry 2-year old heifers.
No problem is presented on this appeal as to the described farm machinery, equipment and appliances, so discharged and released from attachment.
The instant action is concerned with the expenses and outlay incident to keeping and caring for the 394 head of cattle and their calves that were held under the attachment until April 5, 1955, when such attachment, having been shown to be wrongful, was dissolved by order of this court. See Fraser v. Clark & Owens, 129 Mont. 56, 282 P.2d 459.
The evidence discloses that during the period the attachment was in effect, Sheriff Bucher experienced extreme difficulty in obtaining such money as he was able to collect from R. B. Fraser to repay and reimburse the officer for the expenses incurred and the outlay made by him in keeping and caring for the attached herd of cattle, and that finally the sheriff was forced to resort to the courts and there petition for assistance to compel the Frasers to pay the balance owing from them to the sheriff for his outlay in their behalf.
On September 9, 1954, Sheriff Fred J. Bucher filed in the district court for Fergus County in said civil action No. 19,805 his duly verified petition seeking either a release and discharge of the attachment or a court order requiring It. B. Fraser to pay the sum legally due Sheriff Bucher under his agreement with Fraser.
In his above petition, Sheriff F. J. Bucher, inter alia,, stated under oath:
“That on various and many occasions your petitioner has contacted the above-named plaintiffs and also their Attorneys in an attempt to obtain sufficient moneys to run and operate and care for said cattle so held under attachment; that on or about the 20th day of March, 1954, this affiant went before the District Court at Billings, Montana, to obtain the appointment of a Custodian for said cattle, and that the plaintiffs, through their Attorneys, appeared and agreed that the costs of taking care of the livestock would be furnished and provided to the Sheriff, your petitioner herein, by the plaintiffs, and that it would not be necessary to appoint a Custodian for the care of said livestock ; upon said representations made to the Sheriff at that time, the move to obtain a Custodian through appointment by the Court was dropped, and for sometime thereafter the plaintiffs did furnish to the affiant, the petitioner herein, sufficient funds to pay the costs of a Deputy Sheriff to care for said cattle and necessary costs in the caring and operating of said cattle upon the range, and necessary feed therefor; that the Petitioner herein has constantly over the period of time elapsing since then been required to make requests and demands for sufficient funds to maintain said Deputy Sheriff or keeper in charge of said cattle, and other costs accruing for the care of said cattle upon the range, but during all of said time the said plaintiffs have gotten behind in said payments, and at the present time, the Sheriff of Fergus County, Montana, has expended over $800.00 of his own money to keep said Deputy Sheriff or keeper in charge of said cattle, and to pay and maintain the costs of oper ating and earing for said cattle upon the range where they are now pastured;
“As time goes on, the cost of maintaining and earing for said cattle is going to increase, for it will be necessary to buy hay and employ additional help to take care of said cattle and care for same during the colder months of the Winter;
“That in recent weeks, this Affiant, your petitioner herein, has made several demands upon both of the Attorneys for plaintiffs and upon the plaintiffs personally, to pay the amount now due to the Sheriff of more than $800.00, and that said plaintiffs have neglected and refused to pay the same and the Attorneys for the plaintiffs have neglected and refused to pay the same, although they have been notified of the indebtedness by this petitioner, and demand has been made upon the said Attorneys and said plaintiffs for the payment of the same, and they have refused and neglected to advance or to pay said costs or any part thereof;
“That this petitioner is a person of limited means and cannot afford to maintain the costs of said care and maintenance of said livestock and cattle, and cannot pay the said Deputy Sheriff or keeper or other costs necessary to carry on and maintain said attachment, and has reached the limit of his resources therefor, and that petitioner now respectfully petitions the Court that the said attachment be released and discharged, or that the said plaintiffs be required to pay the amounts due hereinbefore stated which, at this date, is the sum of $800.78, which affiant has expended in the care and maintenance of said livestock, together with the costs of a Deputy Sheriff to care for same and other costs;
“An itemized statement of said costs is hereto attached and made a part hereof for all intents and purposes, and marked Exhibit ‘A’.”
In his above petition, a copy whereof was duly served upon the Frasers and their counsel, the sheriff set out all the necessary expenses and outlays made by him in behalf of the Frasers, but they wholly failed and omitted to answer such petition or any of the sworn statements made by Sheriff F. J. Bucher therein.
Instead of answering or otherwise pleading to the foregoing-petition, R. B. Fraser made a partial payment on the balance he was then owing to the sheriff, and then obtained a continuance of the hearing that had been ordered on the xietition.
The evidence also discloses that even at this late date, it became and was a constant endeavor and struggle to prevail upon Fraser to repay the balance of the money that the sheriff had expended in safely keeping and caring for the attached herd of cattle for at no time did Fraser see fit to pay in full any statement furnished him of his account with the sheriff with the result that, by the date in April 1955, whereon the attachment was finally dissolved by order of this Court, R. B. Fraser then owed the sheriff in excess of $1,100.
Unable to collect the balance owing to him, Sheriff Bucher, on July 1, 1955, filed this suit against R. B. Fraser and Rosa-belle Fraser, his wife.
In their answer to the plaintiff Bucher’s complaint, the Frasers pleaded as an affirmative defense that the services were not worth what the sheriff charged; that the sheriff had not properly attached and kept the -property; that the sheriff had neglected to have keepers appointed by the district court pursuant to the provisions of section 25-226, R.C.M. 1947, for which reason he was not entitled to reimbursement for the cost of the keepers and further that the Frasers had been overcharged by the sheriff by virtue whereof the Frasers demanded judgment against the sheriff in the sum of $2,025.08.
The trial was by a judge sitting without a jury. Written findings of fact and conclusions of law were filed wherein the court held that the sheriff was entitled to a judgment against the Frasers in the amount of $1115.08 plus interest and costs. From the judgment so given and entered the Frasers have appealed.
B.C.M. 1947, § 25-226, in part, provides: “(2) For the expense in taking and keeping possession of and preserving property under attachment, execution or other process, such sum as the court or judge may order, not to exceed the actual expense incurred, and no keeper must receive to exceed five dollars ($5.00) per day and no keeper must be employed without an order of court, nor must he be so employed unless the property is of such character as to need the personal attention and supervision of a keeper. No property shall be placed in charge of a keeper if it can be safely and securely stored, or where there is no reasonable danger of loss.”
Appellants contend that section 25-226, supra, is mandatory; that strict and full compliance therewith must be shown before the sheriff may recover his expenses and outlays for the cost of the keepers; that the parties procuring the attachment owe nothing to the sheriff unless and until the sheriff has obtained a court order allowing him to employ keepers; and that the provisions of the statute, section 25-226, may not be waived by or through any private contract or agreement with the sheriff. We do not so read the statute.
B.C.M. 1947, § 49-105, provides: “Any one may waive the advantage of a law intended solely for his benefit. But a law established for a public reason cannot be contravened by a private agreement.”
Clearly the provisions of section 25-226, supra, are for the benefit and protection of the parties litigant and are for the benefit and protection of the sheriff who is directed to make the seizure and levy.
In the early case of Sullivan v. Utah & N. Ry. Co., 11 Mont. 236, 28 P. 307, a sheriff had been requested to hire extra deputies to protect certain property which the railway deemed in danger. An express agreement was entered into that the railway would pay the expenses of the extra help. The sheriff was forced to bring suit to collect. Tbe railway’s defense was that tbe statute prohibited the sheriff from asking or receiving extra compensation by providing: “No sheriff shall, directly or indirectly ask, demand, or receive, for any service to be by him performed in the discharge of any of his official duties, any greater fees than are allowed by law.” Comp.St.1887, div. 5, § 864.
In that case it was shown that the sheriff felt the employment of extra help was unnecessary; that he was sure that with his regular staff he could perform any duties which he deemed necessary, and that in the face of this the railway company asked for and obtained special help to aid the sheriff even though he felt it was neither needed nor necessary.
In holding that the railway company should pay the compensation necessary for the services of the extra help the court said, quoting from Succession of Irwin, 12 La.Ann. 676:
“ ‘We know of no principle of law which forbids a man who is threatened with violence, or deems it necessary to his personal security, to employ about him persons capable of rendering him efficient assistance in case of need.’ * * *
“We think, therefore, that the contract referred to in the answer and evidence, which was entered into between the appellant and respondent, cm he enforced in this action.” Emphasis supplied. [28 P. 310]
The right to contract over and above the fees allowed by law is similarly implied in the ease of Noel v. Cowan, 80 Mont. 258, 260 P. 116.
There is authority to the effect that these statutory limitations are solely to protect the parties in the action in regard to costs. Such is implied in Noel v. Cowan, supra. Also see Edinger v. Thomas, 9 Colo.App. 151, 47 P. 847, and Farmers’ Union Milling and Elevator Co. v. Smith, 79 Colo. 277, 245 P. 346.
We find no rule in Montana that bars an attaching creditor from entering into a private agreement with the sheriff to pay such sheriff out of the attaching creditor’s own pocket additional compensation over and above that contemplated by the statute.
In the instant ease, the evidence is clear and convincing that R. B. Fraser through his attorney, Sterling M. Wood, Esq., entered into an agreement to pay the costs and expenses that would be incurred by the sheriff in safely keeping and properly caring for the attached property that was in his custody.
Furthermore, we find considerable substantial evidence in the record before us to establish, as a fact, that the plaintiffs Fraser through their attorney, Sterling M. Wood, Esq., persuaded the sheriff that it was wholly unnecessary for him to use the statutory procedure providing for obtaining a court order authorizing the appointment of a keeper or keepers. For these reasons, we find no merit in the contention that the provisions of section 25-226, supra, constitute a defense herein to the claim and right of the sheriff to be reimbursed for his expenses and outlay in carrying out the directions of the Frasers and their counsel in seizing, keeping and caring for the herd of attached cattle.
The evidence in the instant case is to the effect that the Frasers’ attorney made an agreement and reaped the benefits thereof. No competent evidence was presented that at any time while the attachment was in effect either the Frasers or their attorney ever repudiated the agreement to pay the sheriff for his expenses and outlay in their behalf. The contention that the Frasers’ attorney exceeded his authority is wholly without merit.
The Frasers have challenged the reasonableness of the sheriff’s expenses and outlay. In view of the perishable nature, the great value of the attached property, and the close and constant supervision required, together with the additional burden placed upon the sheriff because of the constant bickering and numerous court actions and proceedings involving the parties to the original action out of which this attachment arose, we are satisfied that the expenses and outlay of the sheriff were and are reasonable. No evidence was offered that the work could have been performed with less travel or for less money. The expenses shown are minimum expenses and were properly and legally incurred.
The judgment of the district court is affirmed.
MR. CHIEF JUSTICE HARRISON and MR. JUSTICES BOTTOMLY, ANGSTMAN and CASTLES concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
Farmers State Bank appeals from findings of fact, conclusions of law and judgment entered by the District Court of Ravalli County, holding that because the bank had acted in a manner not authorized by the Uniform Commerical Code (U.C.C.) in repossessing certain property and dealing with certain notes, it was precluded from recovering a deficiency judgment on the notes from obligor Mobile Homes Unlimited or guarantors E. R. Vallance, Barbara Vallance, and Don Garrod.
Respondents E. R. Vallance and Don Garrod were the operators of a trailer facility, Mobile Homes Unlimited. Each owned a half interest in the enterprise. The business had a “floor plan” financing arrangement with appellant Farmer State Bank whereby the bank would loan money for the purchase of trailers and respondents would execute notes to the bank with the trailers security, with the idea that respondents would be able to resell the trailers, pay off the notes, and still realize a profit for the business.
In 1975, Garrod arranged to sell his half interest in Mobile Homes Unlimited to Vallance. At that time, five trailers were obligated to the bank under the floor plan arrangement, each secured by a separate note.
As a result of the sale of Garrod’s interest to Vallance, it was necessary to refinance the Mobile Homes Unlimited units that were floor planned by the bank. The five notes for the five units involved were consolidated into a single note for $50,609. The note names Mobile Homes Unlimited as maker and was executed by E. R. Vallance, President, and Barbara Vallance, Secretary-Treasurer. On the reverse side the notes was signed by E. R. Vallance, Barbara Vallance, and Don Garrod as guarantors. At the same time this notes was executed (April 7, 1975), a separate note for $9,287.04, covering other obligations of Mobile Homes Unlimited to the bank was also executed in like manner with the Vallances and Garrod signing in their individual capacities as guarantors. The larger note was secured by the five trailers, and a U.C.C. financing statement listing them was properly filed. The smaller note was unsecured.
On June 11, 1976, a complaint was filed in the District Court, Ravalli County, alleging that the two notes were in default and seeking recovery from respondents of a balance due of $26,665.66 on the larger note and $8,287.04 on the smaller note. The complaint noted that two mobile homes remaining under the security agreement (the other three having already been sold by Mobile Homes Unlimited) had been repossessed by the bank and would be sold. They subsequently were sold and the proceeds applied to the balance due, reducing the amount in controversy.
Separate answers were filed by Garrod, Mobile Homes Unlimited, and the Vallances. Garrod alleged, among other things, that any sums owing had been paid. Mobile Homes Unlimited alleged that plaintiff had derived more than sufficient funds to pay off the smaller note from the sale of the two trailers it took into possession under the security agreement, and that the larger note would have been paid off already if payments which Mobile Homes previously made had been applied in accordance with an agreement which had been reached during the negotiations leading to the execution of the notes, which agreement the bank had allegedly ignored. The answer of the Vallances also alleged that the notes would have been paid off already if the payments had been properly applied, and contended further that they were discharged of any obligation because the bank allegedly failed to give them proper notice under the U.C.C. regarding sale of the repossessed trailers. A later amended answer and counterclaim was filed by Mobile Homes Unlimited adding the allegation that the bank had unlawfully seized certain items in which it had no security interest when it repossessed the trailers. The counterclaim sought $10,000 damages for the items allegedly seized unlawfully and $10,000 punitive damages.
Trial was held before Judge E. Gardner Brownlee on December 17, 1976, August 27, 1977, and October 28, 1977. The fragmentation was the result of recesses imposed by Judge Brownlee because the evidence was being presented in such a confused manner that he was unable to follow the arguments and he therefore required the parties to sort out their contentions and submit them in intelligible written form.
The evidence adduced at trial indicated that for certain checks paid to the bank by Mobile Homes Unlimited which had notations on them in regard to the manner in which they were to be applied to reduce the obligations, the bank disregarded the notations and distributed the funds to suit its own purposes, contrary to both the notations on the checks and to the manner of distribution that had been previously agreed upon in the negotiations leading up to the execution of the notes.
The evidence in regard to the repossession and sale of the collateral was that an officer of the bank, accompanied by respondent Garrod, had gone to the Mobile Homes Unlimited lot; that the two trailers still covered by the security agreement together with a third trailer not covered by an agreement but which had been received as a trade-in on the sale of one of the other secured trailers were taken; that Don Garrod took and sold eight furnaces not covered by any security agreement and turned the proceeds over to the bank; and that in the trailers seized by the bank were certain items of furniture which defendants alleged were not covered by the security agreement. There was conflicting evidence as to whether all respondents had been given notice as required under the U.C.C. before the sale of the repossessed trailers.
It was established that both notes involved had been extended six months, the extension being signed “Mobile Homes Unlimited X E. R. Vallance.” No notice was given to Don Garrod that the extension was being made.
The last entry on the reverse of the large note is under “Advances Given” and is in the sum of $500, increasing the balance due from $3,605.55 to $4,105.55. The bank’s testimony was that this was not really an “advance” but rather a return to a buyer of one of the repossessed trailer because the trailer had been sold to him as a 1974 model whereas it was actually a 1973. No notice of this “advance” was given to any of the defendants.
Subsequent to trial, on February 6, 1978, findings of fact, conclusions of law and judgment were entered. The District Court found that the bank had taken possession of a trailer not a part of any security agreement (even though the trailer was a trade-in on one which was covered by a security agreement); that the bank took possession of some furniture and furnaces not listed on any security agreement; that the bank “in effect took over the operation of the business and made disposition of property in the manner not completely authorized by the U.C.C. or the Security Agreement”; that from the evidence submitted it was impossible for the court to determine what amount would be owed the bank if it had proceeded-properly; and that any deficiency “could just as well be the result of improper conduct on the part of the plaintiff bank as it could be the result of defendants’ actions.” The court also found that the Vallances had filed a counterclaim against the bank (erroneous — the only counterclaim was filed by Mobile Homes Unlimited) but were not entitled to any judgment thereon. Finally, the court found that none of the guarantors were obligated for any deficiency on the notes. No specific finding was made whether defendant Mobile Homes Unlimited, the maker, was or was not so obligated. The single conclusion of law and the judgment reached from these findings were worded almost identically: “None of the parties to this action are entitled to any judgment against any of the other parties.” From those findings, conclusions, and judgment the bank has brought this appeal.
Broadly stated, the only issue involved in this appeal is whether the trial court’s findings and conclusions are supported by the evidence. Numerous specific questions underlie this issue, including several matters raised by Garrod and the Vallances in reliance on the principle that a guarantor is exonerated if a creditor alters the original obligation of the principal. See section 30-208, R.C.M.1947, now section 28-11-211(1) MCA. These matters, however, do not appear to have been central to the trial court’s decision. Rather, the underlying basis of the trial court’s judgment is that plaintiff is barred from recovering any deficiency remaining unpaid on the notes because it failed to act in a commercially reasonable manner in regard to the repossession and sale of the collateral.
Under the U.C.C., section 87A-9-504(3), R.C.M.1947, now section 30-9-504(3) MCA, a secured party’s right to dispose of collateral after default is subject to the requirement that “every aspect of the disposition including the method, manner, time, place and terms must be commercially reasonable, that is the net effect of the finding that the bank “made disposition of property in the manner not completely authorized by the Uniform Commercial Code of the Security Agreement.” Therefore, we frame the issue as follows: Whether the trial court erred in finding that Farmers State Bank acted in a manner not authorized by the U.C.C. in handling the repossession and sale of collateral and is thereby barred from recovering any deficiency judgment from either the maker of the guarantors of the notes secured by that collateral.
Under the U.C.C., the courts have generally taken the view that the burden of proving the commercial reasonableness of the disposition of collateral is on the secured party. Annot. 59 ALR3d 369. It is also generally held that a secured creditor’s failure to give the notice required under U.C.C. § 9-504(3) (in Montana, section 87A-9-504(3), R.C.M.1947, now section 30-9-504(3) MCA) prior to disposition of collateral precludes or limits the creditor’s right to recover a deficiency judgment. Annot. 59 ALR3d 401.
Rule 52, M.R.Civ.P., which requires that in all actions tried upon the facts without a jury or with an advisory jury, the court shall find the facts specially, also provides in pertinent part:
“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.”
In attempting to apply the foregoing principles to this case, we have reviewed again and again all the leadings, exhibits and testimony comprising the record. Our endeavor leaves us in complete sympathy with the consternation of the trial court as attested to in its finding that “. . . from the evidence submitted ... it is impossible to determine what, if any, amount would be due to the plaintiff if the plaintiff had proceeded in a manner authorized by the U.C.C. and its Security Agreement.”
As we previously mentioned, the trial court judge imposed two recesses in the trial of this matter because the parties’ presentation was so disorganized. Illustrative of the confusion that characterized this proceeding is the contradictory evidence on whether notice of the sale of the repossessed collateral was given. Plaintiff’s prime witness, a bank officer, testified that “to the best of his knowledge” Mobile Homes Unlimited was not given notice before the trailers were sold. Respondents rely heavily on this testimony to argue that the bank acted in a commercially unreasonable manner and is thereby barred from recovering a deficiency judgment. At a later date in the trial, however, both Don Garrod and E. R. Vallance appear to testify on cross-examination that they were sent a letter of notice of the impending sale as required by the U.C.C. We say they “appear” to have so testified, because the exhibit they refer to (the letter) was mislabeled when it was put into evidence. Plaintiff’s counsel never does explain the testimony of his own witness that no such notice was sent to Mobile Homes Unlimited.
Conflicts in the evidence are not confined to the issue of notice. There was evidence that the bank repossessed a trailer that had been.taken as a trade-in on one of the secured units, and on that ground the bank objects.to the finding that it took into possession a trailer home “that was not a part of any security agreement.” The bank argues that the taking of this trade-in trailer was merely a seizure of its own property because the trade-in was “proceeds” of the collateral under section 87A-9-306, R.C.M.1947, now section 30-9-306 MCA. In reviewing the exhibits, however, we note that the security agreement filed by the bank left blank the item providing that “Proceeds of collateral are also covered.” The bank has done nothing to show that it comes within section 87A-9-306, R.C.M.1947, now section 30-9-306 MCA. We also note that there was evidence that the bank did not give Mobile Homes Unlimited full credit for the amount agreed upon as the value of the trade-in.
There is likewise conflicting evidence on the matter of whether the bank wrongfully seized some furnaces in which it had no even arguable security interest. The bank contends that Don Garrod, not it, seized the furnaces. It appears from testimony ignored by the bank, however, that it directed Garrod to take the furnaces and sell them, and if he had not then the bank would have. Further, the signature of a bank officer appears on the inventory list of the furnaces drawn up at the time they were seized.
Appellant complains in its brief that the trial court “does not feel the need to point out the specific sections of the Uniform Commercial Code which the Bank failed to observe’. We have indicated in a recent opinion that such an objection raises no reversible error:
. . findings of fact and conclusions of law will support a judgment, though they are very general, where they in most respects follow the allegation of the pleadings. Findings should be limited to the ultimate facts and if they ascertain ultimate facts, and sufficiently conform to the pleadings and the evidence to support the judgment, they will be regarded as sufficient, though not as full and complete as might be desired.” Holloway v. University of Montana (1978), 178 Mont. 198, 582 P.2d 1265, 1268, citing Pearson v. Pearson (Utah 1977), 561 P.2d 1080.
If a trial court’s findings are sustained by competent, substantial, although conflicting evidence, they will not be disturbed on appeal. Holloway, supra. The evidence will be reviewed in the light most favorable to the prevailing party, and the credibility of witnesses and weight accorded their testimony is for the District Court’s determination in nonjury trials. Arrowhead, Inc. v. Safeway Stores, Inc. (1978), 179 Mont. 510, 587 P.2d 411.
On the record before us, we cannot conclude that the District Court’s findings are “clearly erroneous”-. Rule 52 M.R.Civ.P. As to appellants’ contention that patent error was committed in the finding that the Vallances had filed a counterclaim, whereas the only counterclaim was filed by Mobile Homes Unlimited, such error was not prejudicial to appellant and affords no grounds for reversal in light of the finding that “Defendants are not entitled to any judgment . . . upon their counterclaim.” Given the state of the record established by appellant, the conflicts in the evidence, the general rule that the secured party bears the burden of demonstrating commercial reasonableness upon disposition of collateral, and the presumptions in favor of collateral, and the presumptions in favor of the correctness of the District Court’s findings, the judgment appealed from is affirmed.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY concur.
|
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MR. JUSTICE MORRISON
delivered the opinion of the Court.
This is an appeal by defendant from judgment entered May 15, 1981, by the Third Judicial District Court following a jury verdict in favor of plaintiff for $1,390,000.00 and from the order entered thereafter on post-trial motions. Plaintiff cross-appeals.
Plaintiff’s legs were traumatically amputated by an explosion on February 6, 1977. Plaintiff, employed at the Anaconda Smelter in Anaconda, Montana, had been engaged in a conversation with a co-employee, Larry Raver. During the conversation, Raver picked up a “projectile” or large shell from his nearby truck and was holding it in his hands. Raver explained to the plaintiff that the shell was a dud but that it was designed to “go off” in a certain manner. When Raver was concluding this statement, the plaintiff concerned of the danger, began running for safety. The shell exploded. Raver was killed and plaintiff’s injuries ensued.
Plaintiff filed suit against the Montana National Guard and the State of Montana alleging that the decedent Raver obtained the shell from the National Guard firing range in the Deer Lodge-Mt. Powell area. Plaintiff’s proof established that the National Guard held exercises in this area and that large ammunition was left after the exercises. Plaintiff alleged negligence in failure to clean up the area and in leaving live ammunition where the public had access to it. Substantial credible evidence established a case of negligence and defendants do not appeal that determination. Defendants contend that plaintiff totally failed to prove that Raver obtained the shell in question from the firing range near Deer Lodge.
Two other issues are presented for review. Defendants contend that the present limitation on state liability for damages should apply or, in the alternative, that any recov ery should be limited to applicable insurance limits. In a cross-appeal plaintiff challenges the constitutionality of section 2-9-317, MCA, which exempts the State from paying interest on judgments for a two year period. The sufficiency of evidence question must be decided first.
SUFFICIENCY OF EVIDENCE
Plaintiff’s case for proximate cause was supported by the following:
(1) Plaintiff’s testimony that the shell which caused his injuries was approximately eighteen inches long and about three inches in diameter;
(2) Evidence from the National Guard that exercises near Deer Lodge had included the firing of a projectile about eighteen inches long with a three-four inch diameter;
(3) Testimony from several witnesses that large live rounds had been found in the area of Mt. Powell;
(4) Deposition testimony from Larry Raver’s widow establishing that Raver had traveled by motorcycle in the Mt. Powell area and during his motorcycle travels had collected what might be termed “junk items”;
(5) Larry Raver, while demonstrating a large shell to a co-employee prior to this accident, stated that he had found the shell;
(6) Other sources of the shell in question were few, if any.
Defendant countered with expert testimony tending to prove that the round which exploded and injured the plaintiff was a 2.75 inch rocket round with a mark-176 fuse. Defendants’ evidence further sought to prove that such a rocket round had never been fired by the Montana National Guard at the Deer Lodge firing range.
The issue is whether plaintiff’s circumstantial evidence was sufficient to create a jury issue on proximate cause. It is incumbent upon the plaintiff to present evidence from which a jury might reasonably infer that Larry Raver obtained the shell in question from the National Guard firing range near Deer Lodge. Circumstantial evidence sufficient to prove proximate cause in a civil cause need not exclude every reasonable conclusion other than the conclusion sought to be established. Lenherr v. NRM Corp. (D.Kan.1980), 504 F.Supp. 165. Plaintiff’s evidence is sufficient if it affords a basis for a reasonable inference by the trier of fact although there are other reasonable inferences which might be drawn by that trier of fact. Arterburn v. St. Joseph Hospital and Rehabilitation Center (1976), 220 Kan. 57, 61, 551 P.2d 886, 891.
With these rules in mind, we will not review that evidence offered by the plaintiff to prove the proximate cause thesis. Upon this evidence, the plaintiff’s contention for a submis-sible jury issue must rise or fall.
The following testimony was given by Gerald Effing, retired National Guard Colonel:
“Q. Did you know anything about the firing area down in Deer Lodge?
“A. Yes, I did.
“Q. Could you tell us what you knew about that area?
“A. Well, we started firing there in 1956 and fired there in ‘56 and ‘57 and then we went down to Townsend in 1958 or about 1961 and then went back to Deer Lodge for ‘62 through ‘66.
“Q. What type of guns or what did you fire there?
“A. Well, the artillery, we had 105 millimeter howitzers and we had 155 millimeter howitzers.
“Q. And the ammunition which the artillery fired, was that all live ammunition?
“A. Yes, it was.
“Q. First, could you state what the general size of a 105 projectile is?
“A. As far as length?
“Q. Just generally.
“A. It would probably be 18 inches long.
“Q. Okay.
“A. About three or four inches in diameter.”
The following testimony of the plaintiff was offered to show the similarity of the shell which injured the plaintiff. Mickey Jacques testified:
“Q. Did you have a chance to look at the shell he was holding?
“A. Yes.
“Q. And could you describe it for us?
“A. Yes. It was a foot — approximately a foot and a half long and about three inches in diameter.”
Plaintiff sought through several witnesses to establish the existence of similar rounds following National Guard exercises. The following testimony is illustrative. Charles Fudge, Forester, U.S. Forest Service, testified:
“Q. Prior to this first time you came in contact in June of 1969 with the National Guard people had you ever been on the Montana State Prison property or forest service property in the vicinity where this fire occurred?
“A. Yes,
“Q. Had you ever observed any rounds or projectiles out there?
“A. Yes. To the best of my recollection, it would have been in the fall. It would have been in the fall of 1968.
“Q. Do you recall where you were when you observed these projectiles?
“A. They were on the face of a grassland area leading up towards Deer Lodge Mountain and Mount Powell ridge, both on Montana State Prison land and at the top of the edge of a grass opening where timber began. I observed one or more projectiles on National Forest lands.”
“Q. Have any other other incidents come to your attention where high explosive projectiles have been found in the area?
“A. Yes.
“Q. When was that?
“A. I believe that was in 1972.
“Q. Would you relate what your recollection of those events were?
“A. Yes. Rob Malinsky, who was an assistant of mine at Deer Lodge, came to me one day and indicated that he had a report from a Deer Lodge resident, as I recall, who had found some projectiles along the shore or just within Powell Lake.”
Laurence Lambert, Montana State Prison employee, testified:
“Q. What area did you see those shells in? Is there a creek or something?
“A. It’s on the ridge between Tin Cup Creek and Robinson Creek. There’s a horse trail that goes to the lake and it’s right where the horse trail breaks at the top of the ridge.
“Q. How long ago did you see these shells?
“A. I would say it was ‘77 or ‘78.
“Q. Has there been more than one shell you’ve observed out there?
“A. Yes.
“Q. How many would you say?
“A. Oh, about 30.”
Other corroborative evidence was received but the testimony quoted above represents the type of proof offered by the plaintiff to establish the existence of large shells in the area of the Deer Lodge firing range.
Plaintiff produced through deposition testimony of Larry Raver’s widow, evidence that Raver traveled in the area where similar rounds were known to have existed. In pertinent part, she testified as follows:
“Q. Would he ride his bike twelve months out of the year?
“A. Yes.
“Q. Do you have any idea where he rode, Delores?
“A. Well, I know for a fact that he rode on the mountains up above our house. He rode quite a bit around Helena, he rode a lot over towards Wisdom and German Gulch. He just crisscrossed everywhere on that bike.
“Q. Did Larry ever bring anything back with him, Delores, when he was on these rides?
“A. He would bring back little things that he found of interest. He might spend an afternoon going through an old rambled-down shack and anything that be thought was adventurous, he would bring it home.
“Q. How would he carry these things?
“A. I had bought him a set of saddlebags for the bike and they got torn, so he put a rack on the back of the bike and he had a box fixed to it that he could put his things in.
“Q. Where did Larry used to fish, Delores?
“A. Mainly in rivers and streams, but all over the State — or this part of the State.
“Q. Do you know whether he ever camped or fished in any of the mountain lakes up in the Racetrack or Mount Powell area?
“A. Yes, he went up there frequently.”
Plaintiff offered the testimony of co-employees, that Raver had displayed a large projectile to them at a time prior to this accident, and had told them where he had found it. Defendants objected on the basis of hearsay and the objection was sustained. However, the following testimony was introduced through James Ficklin, a co-employee, and was received without objection:
“Q. Did you ever see a shell in Larry Raver’s possession up on the hill?
“A. . . . I’m not sure of the exact date. It seems to me it was a couple weeks prior to when Mick was injured and Larry was killed ... I was late for work that day and Larry followed me into the lot . . . he did specify that he had something that he wanted to show me that he found.
“Q. When he pulled up behind you and stopped you, did he get out of the car?
“A. I pulled in and parked my vehicle and when I got out, Larry was outside of his truck but he had his door open. What he was doing was security. When I turned, I walked up and approached the vehicle and when I turned around, I could see some sort of projectile.”
Testimony that Raver found a shell, which may have been the one responsible for plaintiff’s injuries, provides evidence from which the jury could rule out several alternative sources, i.e., that Raver brought the shell home from Vietnam or that he purchased it from anyone.
Plaintiff offered other testimony tending to prove that the plaintiff had not traveled widely outside of Montana, had not brought the shell back from Vietnam, and generally proved the lack of other sources for a projectile similar to the one which injured the plaintiff.
Defendant produced expert testimony, which, if believed, established that the round which injured the plaintiff had not been fired at the Deer Lodge firing range. It is unnecessary to detail this testimony. Plaintiff was able to impeach the credibility of defense experts to some extent, but the expert testimony remained sufficiently strong to support a defense verdict had one been rendered.
In Tompkins v. Northwestern Union Trust Co. of Helena, Montana (1982), Mont., 645 P.2d 402, 408, 39 St.Rep. 845, 853, we stated that: “The jury can choose to adopt the testimony offered by one side to the exclusion of the other. The jury is free to disregard all of the expert testimony.” In most cases, expert testimony does not mandate a result because, by its nature, expert testimony deals with opinion evidence. Irrefutable facts need not be established, and most likely would not be established, through offering expert opinion. Nevertheless, we have sought guidance from other jurisdictions. The cases which bear most directly upon the issue to be here resolved are cases dealing with product identification. In those cases the plaintiff was injured by a defective product and the defendant contended plaintiff had failed to prove that defendant was related to the product in question.
In Smith v. J. C. Penney Company, Inc. (1974), 269 Or. 643, 525 P.2d 1299, plaintiff was badly burned when a gasoline fire ignited her coat. Suit was instituted against the retailer, J. C. Penney Company, and against Bunker-Ramo, alleged by plaintiff to have supplied the fabric used by the manufacturer. A verdict was returned against Bunker-Ramo who then appealed. Plaintiff sought to prove that a Borg trade name on the fabric identified defendant Bunker-Ramo as the supplier. At trial, Rothman, an employee of the manufacturer Roseta, explained that the identification linking Bunker-Ramo to the fabric was meaningless; that from June 2, 1970, forward, Roseta obtained fabric from both Mauldin Mills and Bunker-Ramo but that all fabrics, including those obtained from Mauldin Mills bore the Bunker-Ramo label. Therefore, it was concluded that it would be impossible to tell whether the fabric in question came from Bunker-Ramo or from Mauldin Mills. Bunker-Ramo further offered expert testimony from an employee who testified that an analysis of plaintiff’s coat showed that the fabric in plaintiff’s coat definitely was supplied by Mauldin Mills and not Bunker-Ramo. This evidence was not contradicted by other expert testimony. On appeal the question was whether there was sufficient evidence linking the coat to defendant, Bunker-Ramo. In sustaining the jury verdict, the Supreme Court of Oregon said:
“Or the jury could find that even if it were manufactured subsequent to June 2, 1970, the notations on the cutting order and the tags proved Roseta used Borg fabrics. They could disbelieve Rothman’s explanation that such notations did not prove Borg fabrics were used.” 525 P.2d at 1302.
In commenting on defendant’s expert testimony, the Oregon court said:
“The jury did not have to accept the testimony of Mr. Swihart although his testimony was not directly contradicted.” 525 P.2d at 1303.
The Oregon court held that the witness was sufficiently impeached for credibility to be a jury issue.
In Neubauer v. Coca Cola Bottling Company of Chicago. (1968), 96 Ill.App.2d 18, 238 N.E.2d 437, plaintiff was injured by the putrid contents of a Coca Cola. Plaintiff offered proof that the Coca Cola bottle was a ten-ounce bottle purchased from “Tony’s Liquor Store.” The owner of Tony’s Liquor Store testified that defendant had never supplied him ten-ounce Coke bottles. The Illinois court held that such testimony did not foreclose a verdict for plaintiff. The court said:
“The defendant relies, primarily, on the fact that the Coke in question was in a ten-ounce bottle; that the store owner and the defendant’s employees testified that ten-ounce bottles of Coke were not sold to the store; that the defendant’s witnesses stated that ten-ounce bottles are sold to business entities where there is on-the-premises consumption through coin operated coolers, and to certain other outlets for resale in case lots as leader items . . .
“We cannot say that the plaintiff’s testimony, and the further evidence that the defendant was the exclusive distributor in the area, and that Tony’s Liquor Store purchased its Coke from the defendant, is of insufficient probative value to show that the Coke in question was bottled by the defendant. The direct, positive evidence relative to the ten-ounce bottle was conflicting. From this evidence the jury might well have determined that a ten-ounce bottle was mistakenly delivered to Tony’s Liquor Store by the defendant. Whatever else it may have determined on the basis of these facts, there was adequate evidence for a jury to decide that the Coke in question was bottled and sold by the defendant.” 238 N.E.2d at 439-440.
We think expert testimony offered by defendant, though unrefuted except for impeachment, does not compel or mandate a result for defendant. The jury should be free to weigh that testimony and should be able to accept or reject it.
We must here decide whether, viewing the evidence in a light most favorable to plaintiff, a jury issue was created. Plaintiff offered no direct evidence to prove that decedent Larry Raver obtained the projectile which injured the plaintiff, from the firing range near Deer Lodge. Whether plaintiff has succeeded in creating a submissible fact question to proximate cause presents a close question to this Court. The resolution of this question necessarily involves evaluating the role of a trial judge or appellate court in removing cases from jury consideration.
The following language from Karczewski v. Ford Motor Company (N.D.Ind.1974), 382 F.Supp. 1346, aff’d 515 F.2d 511 (7th Cir.1975), is instructive.
“Motions for directed verdict or for judgment N.O.V. are proper only when there is a complete absence of any evidence to warrant submission to a jury. Cities Service Oil Co. v. Laurey, 403 F.2d 537 (5th Cir. 1968). In this regard evidence and all inferences must be considered in the light most favorable to the party opposing directed verdict. Continental Air Lines v. Wagner Morehouse, 401 F.2d 23 (7th Cir. 1968). Some courts suggest that only evidence supporting the theories of the party opposing directed verdict may be considered. Dun & Bradstreet v. Miller, 398 F.2d 218 (5th Cir. 1968). Others suggest that directed verdict is proper only where there is a complete absence of the probative facts to support the jury verdict. Boeing Co. v. Shipman, 411 F.2d 365 (5th Cir. 1969). The fundamental idea in all this compels a Federal district trial court to exercise the greatest self-restraint in interfering with the constitutionally mandated processes of jury decision. The message is to do so only in the clearest of cases. This is manifestly not one of them.” 382 F.Supp. at 1348.
We agree with the legal philosophy articulated by Judge Allen Sharp in the Karczewski case. Recently this Court reversed a new trial granted to plaintiff, thereby reinstating a jury verdict in favor of defendant. In disapproving the trial judge’s preemptive order we said:
“To honor this action would create a bench supremacy and sap the vitality of jury verdicts.” Nelson v. Hartman, (1982), Mont., 648 P.2d 1176.
We agree with the sentiment expressed by Justice Black in a dissenting opinion filed in Galloway v. United States (1943), 319 U.S. 372, 63 S.Ct. 1077, 87 L.Ed. 1458, (Black, J., dissenting). Mr. Justice Black, in warning of possible constitutional infringements inherent in the directed verdict or nonsuit, said:
“As for myself, I believe that a verdict should be directed, if at all, only when, without weighing the credibility of the witnesses, there is in the evidence no room whatever for honest difference of opinion over the factual issue in controversy. I shall continue to believe that in all other cases a judge should, in obedience to the command of the Seventh Amendment, not interfere with the jury’s function. Since this is a matter of high constitutional importance, appellate courts should be alert to insure the preservation of this constitutional right even though each case necessarily turns on its peculiar circumstances.” 319 U.S. at 407, 63 S.Ct. at 1096, 87 L.Ed. at 1480.
Applying the above articulated principle to the facts here, we cannot say that there is a complete absence of proof on proximate cause which would prevent plaintiff from having a jury resolution of his case. From the facts which we have detailed in this opinion, we hold that a jury of twelve reasonable people, could infer without resort to speculation, that the projectile which injured plaintiff came from the firing range near Deer Lodge. The jury was not compelled to accept the testimony of defendant’s expert witnesses. Rather, that testimony could properly be weighed against plaintiff’s circumstantial proof leaving the trier of fact free to make the factual determination. The jury has spoken, and regardless of how this Court would have decided the fact issues, we must affirm a verdict which we have found to be supported by substantial credible evidence.
IS PLAINTIFF’S RECOVERY LIMITED?
Appellants contend that exposure in this case is limited to applicable insurance limits by section 40-4402, R.C.M. 1947. The statute, adopted in 1963, provides as follows:
“Immunity defense prohibited when liability insured-reduction of award to policy limits. Whenever an insurer accepts any premium, money, or other consideration from a politicial subdivision of the state, municipality, or any pub- lie body, corporation, commission, board, agency, organization, or other public entity for casualty or liability insurance, neither such insured nor insurer shall raise the defense of immunity from suit in any damage action brought against such insured or insurer, and any agreement in the insurance contract permitting the defense of immunity is hereby declared void ... If the court determines that the defendant could have successfully raised the defense of immunity, and if the verdict exceeds the limits of the applicable insurance, the court shall reduce the amount of such judgment or award to a sum equal to the applicable limit stated in the policy.”
The 1972 Montana Constitution, Article II, Section 18, provides:
“The state . . . shall have no immunity from suit for injury to a person or property, except as may be specifically provided by law by a % vote of each house of the legislature.”
The intent of section 40-4402 was to provide for waiver of sovereign immunity where insurance was carried but to limit such waiver to the limits of the liability policy. The statute itself contemplated the existence of governmental immunity which was abolished by the new constitution. The purpose of the statute is made clear by the title which provided:
“An act prohibiting the defense of sovereign immunity where public bodies are insured; . . . and providing for the reduction of award to policy limits where sovereign immunity defense could have been successfully raised; ...” Ch. 240, Laws of Mont. (1963).
Sovereign immunity could not be raised as a defense in this case. The statute has no application.
Section 2-9-104, MCA, limiting state liability, became law after this accident but was in effect at time of trial. Appellants contend section 2-9-104, MCA, is procedural and limits plaintiff’s recovery because it existed when judgment was rendered. This question was disposed of in Dvorak v. Huntley Project Irrigation District (1981), Mont., 639 P.2d 62, 38 St.Rep. 2176. Damages are substantive and the measure of damage is governed by law in effect on the date of injury. The District Court order denying any limitation on plaintiff’s recovery is affirmed.
IS THE STATE EXEMPT FROM PAYING INTEREST FOR TWO YEARS?
Section 2-9-317, MCA, provides:
“No interest if judgment paid within two years. If a governmental entity pays a judgment within 2 years after the day on which the judgment may be assessed against the governmental entity.”
Plaintiff contends that this statute violates Article II, Section 18, of the 1972 Montana Constitution, which we have previously set forth, in that it has the effect of limiting the plaintiff’s recovery.
In Leaseamerica v. State (1981), Mont., 625 P.2d 68, 38 St.Rep. 398, we held that the constitutional provision abolishing governmental immunity did not render invalid the statute exempting the State from paying interest upon judgment. However, we based that decision upon the fact that the constitutional provision was intended to apply only to torts and that since the subject matter of Leaseamerica v. State was a contract, the constitutional provision had no application. We did not decide whether the State could be freed from paying interest on a tort judgment.
In the past this Court has treated interest as something apart from the cause of action. In Stanford v. Coram (1903), 28 Mont. 288, 72 P. 655, the Court said:
“. . . The judgment is itself a creation of law. It bears no interest unless granted by legislative enactment. . . A party is not entitled to interest merely because he has a judgment, but solely because the legislature, in its discretion, has said he may charge interest.” 28 Mont, at 292, 72 P. at 655.
This Court has also stated that interest is damage for delay in payment of the principle obligation. See State High way Commission v. Marsh (1978), 175 Mont. 460, 575 P.2d 38.
We hold that interest on a judgment is not an integral part of the case of action itself. We find that section 2-9-317, MCA, does not offend Article II, Section 18, of the Montana Constitution. We do not here decide whether the State can be treated differently from other tort-feasors concerning the subject of damages which are part of the cause of action itself. We rather hold that interest, not being a detriment arising from the wrongful act, can be suspended by statute as was done here.
The judgment of the District Court is affirmed in its entirety.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, WEBER and SHEEHY, concur.
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MR. JUSTICE MORRISON
delivered the Opinion of the Court.
On January 14, 1985, defendant Lloyd Wilson filed a motion to suppress evidence found during a search of a Havre, Montana, motel room in which he was residing. Following an evidentiary hearing, the District Court of the Twelfth Judicial District granted defendant’s motion. The State appeals.
On September 14, 1984, Alex Tomaskie called the Havre Police Department for the third time in a month to report his 13 year old daughter missing. On the previous two occasions, information relayed to the police by Mr. Tomaskie resulted in the locating of his daughter. On this occasion, Tomaskie informed the police that his daughter had phoned to say she was with a Dana Wilson in a car with “WILSON 2” license plates at a motel and was too intoxicated to come home. Mr. Tomaskie also stated that he could hear a girl giggling in the background during the call. After a previous escapade, Tomaskie’s daughter had told her father that Lloyd Wilson provided the alibi by which she was able to run away. However, she was not found with Wilson on either of the previous occasions.
Recognizing the license plate number as that of a car belonging to defendant, Lloyd Wilson, the police went to his home. The car was not there. The police then began searching Havre motels for Wilson’s car. It was located by Deputy Mygland at the Cloud 9 Motel at approximately 11:30 p.m., September 14, 1984. Mygland asked the desk clerk if Lloyd Wilson was a guest. The clerk responded that yes, Wilson was in room 208, registered under the name of John Anderson.
Deputies Stolen, Roe and Mygland approached room 208. Stolen knocked on the door, but did not identify himself. After a minute or so Wilson answered, opening the door 18 to 24 inches. Deputy Stolen immediately placed his foot across the threshold of the door, preventing it from being closed by Wilson should he attempt to do so. Instead, Wilson stood directly in front of the door opening while talking with Stolen.
Stolen asked if the Tomaskie girl was in the room. Wilson denied knowing the girl and stated that he was alone. The only light in the room was that of a burning candle. However through the crack on the hinged side of the door, Deputy Stolen could see movement in the room which he thought could be a young girl getting dressed. He could also see a pipe lying on a table and smell marijuana and incense burning. Stolen then informed defendant that unless the person in the room came out so that he could see if it was the Tomaskie girl, he would be returning with a warrant. The girl, 16 year old Tamie Kiecker, and Wilson then exited the room. Wilson closed the motel door behind him and it was not reopened until the police obtained a search warrant.
Tamie Kiecker was taken to the police station by Sergeant Harada. Before leaving the scene, however, she told the sergeant that there was marijuana in the room and that it did not belong to her; and that the Tomaskie girl was not in the motel room.
Wilson was also taken to the police station and arrested. Deputy Stolen requested City Judge Ernest Hofmann to issue a search warrant for the motel room, and presented him with the following affidavit:
“1) On 091484, at 2153 Hrs. Alex Tomaskie called in and reported [M.T.] a runaway. She was reported to be with a Dana Wilson in a 1975 Chevy Monte Carlo Lic/Wilson 2. [M.T.] is 13 years of age. Her dob is 092470.
“2) On 081684, Alex Tomaskie called in and reported [M.T.] as a runaway. On the same date she was located at the Alfred Fredrick-sons residence at 840 5th St. N. On 082584, Alex Tomaskie called in and reported [M.T.] as a runaway. She was located at Rick Clark residence at Shennum Trailer Court #7. In both incidents Alex Tomaskie called in and gave us this information as to where [M.T.] was at. In both incidents it proved to be reliable information.
“3) On 091484, Alex Tomaskie called in and advised that [M.T.] called him at 2303 and told him that she was at a Motel but was too drunk to come home.
“4) While looking for [M.T.] the deputies checked the Lloyd Wilson residence and found the car Wilson 2 not there. The vehicle was located at the Cloud 9 Motel in Havre.
“5) On 081684 at 2000 [M.T.] was reported as a runaway by Alex Tomaskie. After she was turned over to her parents on the same date, 2040, she stated to her parents that Lloyd Wilson had helped her runaway.
“6) Deputy Mygland talked to the desk clerk, Mark Roseman. Mark Roseman stated that Lloyd Wilson was registered in Room 208 under the assumed name of John Anderson. Deputy Mygland asked Mark Roseman if he knew Lloyd Wilson, and he stated that he has known Lloyd Wilson for some time.
“7) Deputies went up and knocked on the door to Room 208, after a long pause Lloyd Wilson answered the door. The deputies observed a girl believed to be under the age of 16. This was determined because of her appearance and actions. It appeared to look as she was getting dressed. This juvenile girl was removed from the room and taken to the Havre Police Department.
“8) This applicant smelled what he believed to be Marijuana and Insents. [Incense]
“9) Applicant saw a candle burning and what he believed to be some type of pipe on the coffee table. Lloyd Wilson made every effort to conceal the table from the applicants view.
“10) The minor removed from the room stated to Deputy Mygland and Sgt. Harada that there was marijuana in the Motel Room. She stated that it did not belong to her.
“11) LLoyd Wilson has the reputation in the Havre area as a user of illegal drugs.”
[Typographical errors in original.]
The City Judge granted the request. The subsequent search uncovered marijuana and other drugs, drug paraphernalia and $921.00 in cash.
Defendant’s motion to the District Court requesting suppression of that evidence contains numerous allegations, including:
1. The application for a search warrant includes false and misleading information;
2. The facts in the application which allegedly constitute probable cause for issuance of a search warrant were obtained by illegal, unwarranted and nonconsensual intrusion;
3. The application lacks probable cause to support the issuance of a search warrant;
4. The application does not adequately establish the reliability and credibility of informants who provided information regarding the presence of drugs in the motel room and information regarding defendant’s reputation.
Over the State’s objection that defendant failed to show substantial evidence that the police had used false and misleading information in the affidavit, an evidentiary hearing was held on all grounds. At the request of the State and without objection from defendant, the trial judge also visited the motel room under circumstances allegedly similar to those on the night of the search, stood where Deputy Stolen allegedly stood and saw for himself what Deputy Stolen allegedly saw from the doorway of the room. Thereafter, an order and memorandum were issued granting defendant’s motion to suppress. The trial judge found that the information in the affidavit was misleading; the facts stated in the affidavit were obtained from an illegal search; the affidavit failed to establish the credibility of the informants; and the affidavit failed to establish probable cause for the issuance of a search warrant.
In its appeal, the State raises the following issues:
1. Did Hill County law enforcement officers approach defendant’s room on a pretext and rely on deliberate falsehoods or reckless misrepresentation of the truth to obtain the search warrant?
2. Did Deputy Stolen conduct a warrantless entry into the defendant’s motel room by placing his foot on the threshold of that room and, therefore, conduct an unreasonable search and seizure?
3. Did probable cause exist for issuance of the search warrant?
In State v. Sykes (1983), [ _ Mont _, ] 663 P.2d 691, 695, 40 St.Rep. 690, 694, this Court adopted the test set forth by the United States Supreme Court in Franks v. Delaware (1978), 438 U.S. 154, 171, 98 S.Ct. 2674, 2684, 57 L.Ed.2d 667, 682, for challenging the validity of an affidavit on the basis of deliberate falsehood or reckless disregard for the truth. Initially, “defendant must make a substantial preliminary showing that his rights have been violated.” Sykes, 663 P.2d at 695, 40 St.Rep. at 694.
The trial judge found that defendant’s affidavit alleging use by the State of false statements in its application for a search warrant constituted a “substantial preliminary showing.” Absent a clear abuse of discretion by the trial judge, this Court will not overturn his decision in this matter. Defendant’s affidavit alleges, among other things, that the real reason behind the officers’ visit to his motel room was to gain entry into his room in order to search for drugs and that when he confronted Deputy Stolen with such an allegation, Stolen replied “we have been watching you.” These assertions alone constitute a “substantial preliminary showing” that the State’s affidavit was based on deliberate falsehood or reckless disregard for the truth. Therefore, we hold that the trial judge did not err in considering evidence on this issue at the probable cause hearing.
Regarding issues two and three, we find it impossible to rule on the lower court’s decision due to the inadequacies of that court’s findings.
The trial judge stated “Stolen’s action in crossing the threshold and jamming his boot against the door so it would not be closed was a warrantless intrusion for purposes of a search.” However, defendant opened the door in response to Stolen’s knock. Apparently defendant made no attempt to close the door. Neither, of course, did defendant invite Stolen into his room. “What a person knowingly exposes to the public, even in his own home or office, is not a subject of Fourth Amendment protection.” Katz v. United States (1967), 389 U.S. 347, 351, 88 S.Ct. 507, 511, 19 L.Ed.2d 576, 582. Unfortunately, the trial judge makes no finding on whether or not defendant knowingly exposed his motel room to the police officer. The trial judge makes no finding regarding whether or not Deputy Stolen intruded beyond any invitation defendant might have extended. Further, there are no findings regarding whether, if Stolen did intrude beyond defendant’s invitation, the intrusion had any effect on what Stolen was able to observe in the motel room. In fact, the trial judge made no finding with respect to what exactly Deputy Stolen could observe from the doorway of the motel room, stating instead that “[t]he lighting was so poor that one is led to believe that Deputy Stolen’s appraisal contained a good measure of wishful thinking.”
Therefore, we remand this cause to the District Court for a second evidentiary hearing, after which the trial judge shall make findings of fact and conclusions of law consistent with the above, as well as findings regarding whether or not probable cause existed in Deputy Stolen’s affidavit to support issuance of a search warrant.
Finally, we disapprove of the trial court’s participation in the recreation of the scene. There is absolutely no way to ensure that the trial judge saw exactly what Deputy Stolen saw on the night of the arrest and search. Visits to the scene should be designed for the trier of fact to view the scene, not for the trier of fact to place himself in the shoes of one of the parties. The trial judge’s determination should be based solely on the search warrant application and the evidence presented at the second evidentiary hearing.
Affirmed in part and remanded for a new evidentiary hearing.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, GULBRANDSON and WEBER concur.
|
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PER CURIAM.
Application for order suspending injunction pendente lite pending an appeal.
The application is denied.
|
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MR. JUSTICE MORRISON
delivered the Opinion of the Court.
Barbara Withers petitioned the District Court of the Fifth Judicial District, County of Beaverhead, to issue a writ of mandamus commanding respondents, Beaverhead County, its Commissioners and its Clerk and Recorder to file a deed and certificate of survey transferring a parcel of property from Barbara Withers to her daughter, Amy Withers. The District Court denied the petition. We affirm the trial judge’s refusal to grant the writ of mandamus.
Clark and Barbara Withers own land near Dillon, Montana. The Withers have been attempting to divide the land and convey parcels of it to various individuals for a number of years. In the late 1970’s, Clark Withers submitted a six-lot subdivision proposal to the Beaverhead County Planning Board. That proposal was rejected by the Board as the proposed subdivision was in the middle of valuable agricultural land and its development would result in leapfrogging.
Thereafter, the Withers sold individual parcels of the proposed subdivision, apparently pursuant to Section 76-3-207(1), MCA, which lists types of land transfers which are exempt from the subdivision regulations unless they are made for the purpose of evading those regulations. Clark Withers also deeded 51.74 acres located near the original proposed subdivision to his wife, Barbara. However, when the Withers next sought to have recorded five certificates of survey for parcels of land located between the proposed subdivision and Barbara’s acreage, the Clerk and Recorder refused, stating that the transfers were attempts to evade the county’s subdivision regulations. Beaverhead County then instituted a declaratory judgment suit to determine the nature of the various land transfers.
A decision was issued in that case on January 14, 1981, declaring the recorded transfers to be valid. Regarding the five certificates of survey the Clerk and Recorder refused to record, Judge Gordon Bennett stated:
“The Beaverhead County Commissioners have not acted at all, insofar as this record discloses, with regard to the question of whether the defendants in seeking to record deeds in connection with [the 5 certificates of survey] are attempting to evade subdivision requirements, or just trying to take advantage of occasional, family and purported ‘remainder’ exemptions. If they are restricting the clerk on recording the instruments relating to these tracts without making such a determination they are acting arbitrarily, capriciously and unreasonably and without any authority in law. If they have made such a decision, it should be properly promulgated and communicated to the defendants without further delay.”
He then ordered in a judgment dated June 11, 1981:
“2. That if and when future certificates of survey or conveyance are presented to the commissioners of Beaverhead County, they will announce their conclusion in writing within thirty days, and after hearing thereon if they deem it appropriate, as to whether such certificates of survey or conveyance are for the purpose of evading the Montana Subdivision and Platting Act.”
No further action was taken by the Withers until April of 1982, when Barbara attempted to deed property to her daughter, Amy Withers. The Clerk and Recorder refused to record the deed, contending that it was an attempt to evade the subdivision regulations. Acting on behalf of his wife, Clark Withers submitted the matter to the County Commissioners on July 7, 1982. The Commissioners advised the Withers to present the deed for approval as a minor subdivision, pursuant to the county regulations. The Withers submitted to the County Planning Board an incomplete application for minor subdivision approval. Though repeatedly told the application was incomplete, the Withers did nothing else. Therefore, the Plat Review Committee recommended to the Planning Board that the application not be approved. It was not.
The incomplete application was resubmitted to the Planning Board by the Withers in January of 1983. Despite numerous communications from the Board and the Committee, the Withers again failed to complete the application and the Committee again rejected the application. Thereafter, Clark Withers withdrew the application and resubmitted the certificate of survey and deed to the Clerk and Recorder for recording. Once again she refused to record the deed.
Barbara Withers then petitioned the trial court to issue a writ mandating that the deed to her daughter be recorded. Following a hearing, Judge McKinnon issued findings of fact, conclusions of law and a judgment on January 28, 1985, denying petitioner’s request. She appeals, raising the following issues:
1. Whether the actions of the Clerk and Recorder of Beaverhead County and the Commissioners in refusing to record the deed from Barbara Withers to Amy Withers as an exempt family transaction is arbitrary, capricious and in violation of the law and of the judgment issued by Judge Bennett in 1981?
2. Whether the actions of the Clerk and Recorder and the Commissioners are arbitrary, capricious and in violation of the law, thus entitling appellant to a writ of mandate?
3. Whether the trial judge erred in permitting into evidence Exhibits 2, 3, 5, 6, 7, 8, 9, 10, 23, 24, 25, 26 and 27 and the testimony surrounding them?
Barbara Withers contends that the Commission acted arbitrarily and capriciously in refusing to record her deed. Then, citing numerous Montana cases, she asserts that because of the Commission’s manifest abuse of discretion, a writ of mandate should issue compelling the recording of her deed.
“As a general rule mandamus is available only to compel performance of a clear legal duty not involving discretion. McCarten v. Sanderson, 111 Mont. 407, 109 P.2d 1108, 132 A.L.R. 1229. ‘But even where discretion is involved, if there has been such an abuse as to amount to no exercise of discretion at all, mandamus will lie to compel the proper exercise of the powers granted.’ Skaggs Drug Centers v. Mont. Liquor Control Board, 146 Mont. 115, 124, 404 P.2d 511, 516. This court has indicated that arbitrary or capricious action by an administrative board is an abuse of discretion. State ex rel. Sanders v. Hill (P.E.R.S.), 141 Mont. 558, 381 P.2d 475.” Paradise Rainbows v. Fish and Game Commission (1966), 148 Mont. 412, 417, 421 P.2d 717, 720.
The trial court found no abuse of discretion by the County Commission. Therefore, since the act sought to be compelled is discretionary, the writ of mandamus was not issued.
We affirm the decision of the trial court. In his 1981 judgment, Judge Bennett essentially ordered the Beaverhead County Commissioners to determine, in the event any conveyance of land was attempted by the Withers in the future, whether that conveyance would violate the county’s subdivision regulations. Pursuant to Section 76-3-501, MCA, the County Commissioners established a procedure for making that determination. At the time Barbara attempted to convey this parcel of land to her daughter, the procedure allowed the Clerk and Recorder, pursuant to established guidelines and subject to review, to determine whether the conveyance was an attempt to evade those regulations. Such delegation of authority by local governments is widely recognized and approved so long as it is accompanied by guidelines for the exercise of that authority. See C. Rhyne, The Law of Local Government Operations (1980), Section 4.10 and Sec 6.2. The Clerk and Recorder determined the conveyance to be an attempted evasion. On review of the decision, the Commissioners made the same determination. Therefore, both the law and Judge Bennett’s order were followed.
Furthermore, there is substantial credible evidence to support the determination. The evidence, as set forth below, indicates that the Withers have been attempting to “subdivide” their acreage outside Dillon, Montana, for a number of years.
Since neither the Clerk and Recorder nor the County Commissioners acted arbitrarily or capriciously in refusing to record Barbara Withers’ deed and since such a decision is a discretionary function, a writ of mandamus shall not lie. State ex rel. Barnes v. Town of Belgrade (1974), 164 Mont. 467, 470, 524 P.2d 1112, 1113.
Finally, we see no error in the trial court’s consideration of evidence presented in the earlier case before Judge Bennett, specifically certificates of survey previously filed by the Withers and recorded and maps illustrating how those certificates relate to the subdivision earlier proposed by the Withers but denied by the County. Relevant proof in a mandamus action was delineated by this Court in Stabler v. Porter (1924), 72 Mont. 62, 66, 232 P. 187, 189.
“The applicant must in all cases substantially demonstrate the propriety and justice of his case. Nor is the court bound to take the case as the applicant presents it. It may consider defendant’s rights, the interest of third persons, the importance or unimportance of the case, and the applicant’s conduct, in determining whether or not the writ shall go [emphasis supplied].” Quoting 26 Cyc. 144.
The evidence complained of is very relevant to the Withers’ overall conduct with respect to their land holdings during the past few years and is thus admissible. Rule 401, M.R.Evid.
Affirmed.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES SHEEHY, HARRISON and GULBRANDSON concur.
|
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PER CURIAM:
On June 13, 1968, relators applied to this Court for an appropriate supervisory writ to require respondents to vacate and annul an order dated May 15, 1968, insofar as said order struck the fourth defense set forth in the separate answer of relators in the case of Nelson G. Bingham and Beva L. Bingham, Plaintiffs, vs. AA Oil Corporation, et al, Defendants, pending in the Twelfth Judicial District Court, Liberty County, Montana. Following ex parte presentation of the. application this Court issued an alternative order to show: 'cause, directed to respondents, and ordered service thereof'-to be made upon respondent district court and judge, as well as -counsel for the various parties involved in the aforementioned district court case.
The matter came on for hearing before this Court on July 10, 1968, and taken under advisement.
The Court, after due consideration, is of the opinion that relators will not suffer irreparable harm and gross injustice if the litigation proceeds on the present, record; nor that relators have no pláin, speedy-or adequate remedy other than by this proceeding, but to the contrary that the remedy by appeal in the ordinary course is adequate. • ' "
' It is therefore ordered that the alternative order to show cause be quashed and the relief sought herein be, and it hereby is, denied.
|
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PER CURIAM.
Petitioner seeks a writ of habeas corpus. His grounds simply stated are that on January 14, 1966 he was sentenced to a term of five years at the state prison. After serving nineteen months he was released on parole. While on parole he was arrested on a misdemeanor charge. The disposition of the misdemeanor charge is not revealed; but two months later he was notified that his parole was being revoked. On November 25, 1967 he was returned to prison. On December 16 he was granted a hearing before the parole board, his parole revoked, and he was ordered to serve the remainder of his sentence.
Petitioner asserts that he was not advised of his right to counsel at the time of his arrest on the misdemeanor charge. (He asserts a misdemeanor is not a crime!) He goes on to assert that he was not represented by counsel at the hearing on revocation of his parole. Thus, he reasons that his constitutional right to counsel was violated. Petitioner cites Inmates v. State of Utah, a May 1969 federal district court case as authority for his proposition. We have not seen the cited case, but believe the problem of sufficient importance to require research and briefing. Therefore we are referring the petition to the Montana Defender Project for its investigation, study, and action if indicated.
Therefore it is ordered that the petition be referred to the Montana Defender Project.
|
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OPINION AND ORDER
MR. JUSTICE SHEEHY
delivered the opinion of the Court.
This decision arises on the motion for dismissal of the appeal and for payment of appeal costs and attorney fees by Albert G. Schwend and Hazel P. Schwend, defendants and respondents (“Schwend”). Appeal was taken from the judgment in the District Court by Eugene L. Tippets, Ruth L. Tippets, his wife, John Dudik and Lois Dudik, and the Corporation of the presiding Bishop of the Church of Jesus Christ of the Latter Day Saints, a Utah Corporation (hereafter “appealing defendants”).
Carbon County, a political subdivision of the State of Montana, filed its complaint on May 27, 1976 in the District Court, Thirteenth Judicial District, Carbon County, against more than twenty defendants, including Schwend and the appealing defendants, to quiet title to a certain roadway known as the Sage Creek Road, claimed to be a public highway in Carbon County, Montana. The complaint also sought an injunction against Schwend over whose land the alleged roadway traversed.
Schwend appeared and filed their answer denying the existence of Sage Creek Road as a public right-of-way and objecting to the other relief demanded in the county’s complaint. The appealing defendants did not appear or answer in the District Court. The default of the appealing defendants was duly entered for their failure to appear or otherwise answer the complaint.
The cause then came on for trial on September 22, 1976 before the District Court as between the county and defendants Schwend. On May 2, 1977, the District Court entered its findings of fact, conclusions of law and judgment, in effect finding in favor of Schwend that no dedication to the public use of roadways over their lands had occurred and that the plaintiff county had no prescriptive right for an easement on the claimed road over the Schwend lands.
The county, though requested to do so by the appealing defendants, decided not to appeal from the adverse judgment of the District Court. Consequently, on June 28, 1977, the appealing defendants filed a notice of appeal to this Court.
On December 20, 1977, Schwend filed in this Court a motion for dismissal of the appeal on three grounds:
(1) That the appealing defendants had failed to file an undertaking and docket the appeal or transmit the records to this Court;
(2) That appealing defendants had default entered against them in the District Court were precluded from any further participation in the action until default had been set aside;
(3) That appealing defendants did not participate in the action below and the judgment did not adversely affect their interests so that they had no standing to appeal as a party aggrieved under Rule 1, Mont.R.App.Civ.P.
Schwend also moved that this Court ordered the appealing defendants to pay costs and reasonable attorney fees to Schwend for bringing frivolous and unfounded appeal.
Because of apparent factual disputes in connection with the motion for dismissal, on January 11, 1978, this Court ordered the District Court to hold an evidentiary hearing and to make findings of fact and conclusions of law on the following issues:
(a) What assurances, if any, were made by the county to the appealing defendants resulting in the failure of said appealing defendants to appear and defend in the District Court?
(b) To what extent, if any, does the judgment of the District Court adversely affect appealing defendants or any of them?
(c) Do appealing defendants have standing as taxpayers to appeal?
An evidentiary hearing on the questions presented by our order was held before the Hon. Robert J. Boyd, presiding judge in the District Court, on August 3, 1978. Thereafter, the District Court entered and filed with us the following findings of fact and conclusions of law:
“A. ASSURANCE BY THE COUNTY
“1. Carbon County did not give the Appellants any assurances which misled or in any way caused the Appellants’ failure to appear, defendant, or otherwise participate in this action as parties in interest.
“2. Prior to the time that the Appellants, Tippets and Dudiks, allowed default to be entered against them, they had consulted with two private attorneys, one being their present attorney, Ken Peterson, and they had further consulted with the attorney for Carbon County, Bill Jensen. The Church had also consulted with Ken Peterson prior to the time that default was entered against them.
“3. The Appellants were fully advised of their rights and interests, both personal and public, in the roadway in question, and of the possible conflicts between their personal interests and those public rights claimed by the County. Based upon the advice of Counsel and their personal knowledge the Appellants were aware, or should have been aware that any final judgment to be rendered on the County’s action would affect their right to use the right of way as a public right of way.
“4. The Appellants were advised by the attorney for Carbon County, Bill Jensen, that the sole objective of Carbon County’s claim was the establishment of the public nature of the right of way, and that he represented only the County in so far [sic] as this case was concerned. Mr. Jensen advised the Appellants that they should secure independent counsel if they wished to fully assert or protect their interest in the right of way. He further advised the Tippets and Dudiks that if they were in full agreement with the County’s position, that they a could allow default to be entered against them and that their failure to appear would be an admission on their part of the merit of the County’s position in the law suit. In discussing the entry of default with the Appellants, Mr. Jensen advised the Appellants that their private right would not be affected by the County’s action, however, he at no time assured the Appellants that their private rights included a right to proceed with the case on appeal if the County did not appeal an adverse decision.
“5. Prior to their default, during which time the Appellants ' were encouraging the County to commense [sic] an action to have the right of way declared a public road, the County Commissioners made it clear to the Appellants that they felt any duty they had to the Appellants and to the public in general would be fulfilled if they pursued a legal remedy through the District Court and pursuance through the District Court was the only assurance given by the County Commissioners of Carbon County to the Appellants, and this was the only action requested of the County Commissioners by the Appellants. The Appellants were not given any assurances by the County Commissioners that in the event a judgment was rendered against the County, the County would appeal the judgment to the Supreme Court of Montana. Subsequent to rendition of the judgment against Carbon County, the Commissioners discussed the possibility of appeal with Mr. Jensen and with the Appellants, Tippets and Dudiks. Following these meetings, the County Commissioners were willing to accept the judgment of the District Court and felt that the further expense necessitated by an ap peal would not be justified. Accordingly, the Tippets and Dudiks were advised on this decision.
“B. AFFECTS OF THE JUDGMENT
“1. The judgment of the District Court only concerns the public nature of the right of way in question; it does not adjudicate whether or not the Appellants have any easements for the private use of the right of way in question. If the Appellants held any private easements for the use of the right of way, the judgment entered in this action in no way affects any such rights.
“2. The Judgment affects the Appellants in the same manner as it affects all other members of the public. The Appellants are precluded from use of the right of way as a public right of way. As a practical matter, the Appellants must use an alternative access road to their property.
“C. STANDING
“1. The Appellants own land within Carbon County upon which they pay property taxes to the County, but they are not residents of Carbon County.
“2. The Appellants are not aggrieved in a direct and substantial way in some manner peculiar to themselves, aside and apart from that of all other taxpayers. As all other taxpayers, they may not use the right of way in question as a public right of way.
“3. The Appellants allowed their defaults to be entered and did not participate in the trial directly as parties to the action.
“4. The facts and issues of this case are not such that the Appellants may properly bring an appeal as taxpayers on behalf of the County.
“From the foregoing findings of fact, the Court makes and enters its:
“CONCLUSIONS OF LAW
“A. No assurances were made by Carbon County, either through its Commissioners or its Attorney, to the Appellants which mislead or in ¿ny way caused the-Appellants failure to appear, defend or otherwise participate as parties in the action before the District Court. The Appellants were fully cognizant of all their rights and interests in the right of way and freely chose to allow their defaults to be taken by the County.
“B. (1) The Judgment of the District Court does not preclude the Appellants from any litigation of their rights and interests to the use of the right of way in question; however, the issue of the public nature of the right of way has been fully adjudicated, and any re-litigation of that issue would be barred by the doctrine of .collateral estoppel, unless the judgment of the District Court is set aside.
“(2) The Appellants’ private rights and interests in the right of way are unaffected by the judgment entered in this action, they are merely precluded from using the right of way based upon a public right of use.
“C. (1) The Appellants do not have standing as taxpayers to appeal the judgment of the District Court.
“(2) Under Rule 1 of the Montana Rules of Appellate Civil Procedure, only a party aggrieved may appeal from a judgment or order.
“(3) Absent statutory authority, one interested as a taxpayer is not so far aggrieved by a decision adverse to his contentions as to have standing to appeal unless (a) the Appellants have applied to intervene and have been permitted to intervene as Parties Plaintiff at the trial court level, and they have actively participated as parties, and (b) that the suit involves compelling government authority to perform a duty which it is clearly required to perform and which the failure to perform aggrieves the taxpayer in a direct and substantial way, or to prevent the governing authority from doing an act clearly unlawful and affecting the taxpayer in a direct and substantial way.
“(4) There is no statutory authority in Montana granting taxpayers the right to appeal a judgment on behalf of a government entity such as Carbon County.
“(5) The Appellants did not attempt to participate as parties in this action, and, in fact, allowed default to be entered against them.
“(6) Any private rights the Appellants may have had in the right of way have not been directly or substantially affected by the judgment of the District Court. The judgment affects the Appellants only in that the right of way in question may not be used based upon a public right.
“(7) This is not an action to compel government authorities to perform a duty which it is clearly required to perform or to prevent the governing authority from doing an act clearly unlawful.
“(8) The Board of County Commissioners of Carbon County is vested with general supervisory control over all county roads and the acquisition of right of way within Carbon County. Sections 32-2801 and 32-2802 R.C.M.1947.
“(9) To allow the Appellants to maintain this appeal would usurp the Board of County Commissioners’ discretionary power to control county roads and expenditures made for such roads.
“FINDINGS OF FACT AND CONCLUSIONS OF LAW DATED this 15th day of Sept. 1978.”
We have examined the transcript of the hearing of August 3, 1978, before the District Court, and the briefs and exhibits of the parties filed herein. From our examination of the matter, we determine that the findings of fact adopted by the District Court are supported by substantial evidence in the record. Accordingly, we adopt those findings of fact as our own. See Arrowhead, Inc. v. Safeway Stores, Inc. (1978), 179 Mont. 510, 587 P.2d 411, and cases cited therein.
We are in substantial agreement with the conclusions of law reached by the District Court. We hold based upon those conclusions and as well our own examination of our files that the appeal of the appealing defendant must be dismissed. We base our decision upon the grounds that the entry of default against the appealing defendants terminated their right to further participate in this litigation, and further they are not “aggrieved parties” who may appeal under Rule 1, Mont.R.App.Civ.P.
The notice of appeal is the first appearance of any kind by the ap pealing defendants in this action. They did not appear in the District Court in any way prior to the entry of their default. No action has been taken by the appealing defendants to have those defaults set aside. In Central Montana Stockyards v. R. B. Frazer (1957), 133 Mont. 168, 320 P.2d 981, 988, respondents sought to have the appeal dismissed because notice of the appeal was not served on certain defendants against whom default had been entered in the District Court. We held that such defaulting defendants were not “adverse parties” upon whom notice of appeal had to be served, and this Court said:
“ ‘The entry of his default terminates his right to participate in the litigation in the absence of fraud; and he may not, until such default is set aside in a proper proceeding, file pleadings, move for a new trial, or demand notice of subsequent proceedings.’ (Citing authorities.’
“ ‘Moreover, one in default must not let the grass grow under his feet. Whenever apprised of the fact or facts, he must move with all reasonable expedition.’ (Citing authority.)
“ ‘A defendant against whom a default is entered is not an adverse party to an appeal from a judgment against other defendants, which cannot affect his interests. (Citing authority.) A default suffered on the part of a defendant is an admission and a reversal would not do away with such default, and as long as it stands any judgment rendered on appeal would not affect the judgment against such refaulting [sic] defendant.’ (Citing authority.)”
See also Sealey v. Majerus (1967), 149 Mont. 268, 425 P.2d 70.
The result is the same under the Montana Rules of Civil Procedure. Under Rule 55(a), Mont.R.Civ.P., the clerk may enter the default of a party who has failed to plead or otherwise defend against the complaint. If the party has not appeared, he is not entitled to notice of the entry of default. Rule 55(b), Mont.R.Civ.P. He has no standing to file further pleadings, absent fraud, unless the default is set aside under Rule 55(b), or Rule 60(c), Mont.R.Civ.P.
In the absence of an order of the District Court setting aside the default of the appealing defendants, they had no standing to file a notice of appeal from an adverse judgment against the plaintiff county.
Further, the appealing defendants are not “aggrieved parties” within the contemplation of our appellant rules. Rule 1 of the Montana Rules of Appellant Civil Procedure provides that “[a] party aggrieved may appeal from a judgment or order”. In the case of In Re Stoian’s Estate (1960), 138 Mont. 384, 357 P.2d 41, 46, we held that the converse of Rule 1 was equally true, saying:
“ ‘. . . A party who is not aggrieved by a judgment or order may not appeal from it... It is a general rule, of universal application, that to enable a party to appeal from a judgment or order he must have an interest in the subject matter of the litigation which is injuriously affected by the judgment or order.’ ” (Emphasis in original.)
The District Court concluded, and we agree, that the effect of the District Court judgment was to preclude them from using the claimed right-of-way based upon a public right of use; their private rights and interests, if any, in the right-of-way are unaffected by the judgment entered in this action. The appealing defendants are only affected insofar as they are a member of the general public for which the County claimed the right-of-way.
Further, the appealing defendants have no standing to appeal as members of the public or taxpayers:
“Interest as member of public or taxpayer. As a general rule one interested merely as a member of the general public, or indirectly as a taxpayer, is not so far aggrieved by a decision adverse to his contentions as to have the right of review. The rule is applicable notwithstanding the refusal of the particular state officer to prosecute the appeal on behalf of the people ...” 4 C.J.S. Appeal and Error, § 183, p. 559.
And further:
“A citizen or taxpayer has no right as such to appeal from a judgment in a proceeding to which he is not a party unless he can show he has a direct pecuniary interest in the proceeding, but where the person who desires to appeal is already a party, having been per mitted to intervene below, the fact that, as a taxpayer, he will have to share an expense to be borne by taxpayers generally, has been regarded as giving him an appealable interest . . . Generally, however, individual taxpayers cannot enforce a public right nor redress a public injury by an appeal in their own names, where the only wrong they have suffered or damage they have sustained is like, and in common with all other taxpayers. Rather, an appellant must show that he is aggrieved in some manner peculiar to himself, aside and apart from that of other taxpayers or residents.” 4 Am.Jur.2d Appeal and Error, § 202, p. 708.
Accordingly, the appeal must be dismissed.
Schwend has also asked for attorney fees and costs in connection with this appeal. In the appeal, the appealing defendants recognized that a serious question existed as to their standing to appeal because they did not incur the cost of a transcript of the trial for filing in this Court pending our decision as to whether their appeal would be allowed. The appeal by these parties was entirely unfounded and caused delay, and under Rule 32, Mont.R.App.Civ.P., Schwend should be reimbursed to a reasonable extent for his costs and attorney fees in connection with the appellate proceedings.
Our examination of the record shows that counsel for Schwend was required to frame the motion for dismissal of the appeal, submit briefs supporting the same, prepare for the evidentiary hearing before Judge Boyd, attend such hearing and thereafter submit briefs. The value of the attorney services in this matter is at least the sum of $ 1,250, which sum we find reasonable to be awarded to Schwend. They are also entitled to their costs on appeal. We note that the District Court did not award costs to any party in connection with the original proceeding in the District Court.
The appeal is therefore dismissed, and Schwend is hereby awarded the sum of $1,250 as and for attorney fees, and the costs of appeal.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEA, concur.
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MR. JUSTICE MORRISON
delivered the opinion of the court.
On May 13, 1981, a jury for the Eighteenth Judicial District Court, Gallatin County, found Carl Pierce guilty of one count of aggravated assault, a felony, and one count of misdemeanor assault. Pierce had previously pled guilty to another misdemeanor, failure to stop at the scene of an accident. The court issued a sentence and judgment June 8, 1981, sentencing defendant to: twenty years on one count of aggravated assault; one year to run concurrently, on failure to stop; and six months, to run consecutively, for misdemeanor assault. Defendant appeals. We affirm.
At approximately 2:00 P.M., March 7, 1981, defendant Carl Pierce left Dillon, Montana, and drove toward Gallatin Gateway to visit his wife. His nephew and a hitchhiker ac companied defendant as far as Bozeman. Defendant then proceeded alone, west on U.S. Highway 191, until becoming involved in a serious accident around 6:15 P.M. He abandoned his car and fled the scene of the accident.
Defendant was later apprehended in Country Lanes Bowling Alley and arrested for leaving the scene of an accident. He was taken to the Bozeman police station, where he agreed to submit to a breathalyzer test. The results of the test indicated that defendant’s blood alcohol level was .16 percent. In Montana, an individual whose blood alcohol level is greater than .10 percent is presumed to be under the influence of alcohol in a criminal prosecution for driving under the influence of alcohol. See section 61-8-401(3)(c), MCA.
Defendant pled guilty March 9, 1981, in Gallatin County Justice Court, to driving under the influence of alcohol. On March 11, 1981, defendant participated in a taped interview with an investigator from the Gallatin County Attorney’s Office, during which defendant discussed his activities the day of the accident. An information was then filed March 13, 1981, charging defendant with the following:
COUNT I: AGGRAVATED ASSAULT, a felony, for knowingly causing serious bodily injury to Jeri Lyn Francisco, in violation of section 45-5-202(1) (a), MCA;
COUNT II: AGGRAVATED ASSAULT, a felony, for knowingly causing bodily injury to the other passengers with a weapon, in violation of section 45-5-202(1)(b), MCA; and
COUNT III: FAILURE TO STOP AT THE SCENE OF AN ACCIDENT, a misdemeanor, in violation of section 61-7-103, MCA.
Defendant pled guilty to Count III and proceeded to trial on Counts I and II. At trial, several individuals testified that as they were travelling west on U.S. Highway 191 around 6:00 P.M., March 7, 1981, an older green car passed them on the right shoulder of the road, travelling at a high rate of speed. The car defendant was driving, and which was abandoned at the scene of the accident, was a green 1968 Mercury.
According to witnesses, the driver of the older green car attempted to similarly pass a 1979 Toyota pickup truck. The pickup was occupied by Shirley Francisco and four children. Mrs. Francisco and two of the children sitting in the back of the enclosed pickup testified that they saw the green car rapidly approach the rear of their pickup while on the right shoulder of the road and then felt the impact of the crash. All five passengers were thrown from the vehicle. Mrs. Francisco suffered a fractured right shoulder and a compound fracture of her left ankle. Kevin Schmidt, the other passenger in the cab of the pickup, received lacerations on his back and was dazed. The three girls sitting in the bed of the enclosed pickup were also injured. Rochelle Franscisco was hospitalized for chest pains and dizziness, while Brenda Schmidt was hospitalized for back and neck pain.
Jeri Lyn Francisco suffered the most serious injuries. She was flown to Billings for emergency surgery to remove broken skull fragments from the back of her head and to stop the bleeding of lacerated brain tissue. Attending physicians testified that prior to completion of the surgery on Jeri Lyn, they had believed she was in serious danger of losing her life.
The investigating police officers testified that by conducting a vehicle license check, they learned that the owner of the Mercury automobile was Virginia Pierce. When Mrs. Pierce was contacted, she told the police that her husband, Carl Pierce, had been in possession of the car for approximately one month. Mrs. Pierce later contacted Bozeman police and told them her husband had called and requested she pick him up at the Country Lanes Bowling Alley. Two officers proceeded to the bowling alley, found defendant sipping his first drink at the bar, questioned him and arrested him for failure to stop at the scene of an accident.
The officers testified that Mr. Pierce initially denied being involved in the accident. Mr. Pierce told the officers that he had left his car in Sheridan, Montana, and had hitchhiked to Bozeman. He later admitted to being the driver of the 1968 Mercury at the time of the accident.
During the taped interview, Pierce admitted that he was intoxicated at the time of the accident and stated that he probably should not have been driving. He had consumed twelve beers between noon and the time of the accident.
He also stated that he did not recall passing any vehicle on the right shoulder of U.S. Highway 191. Defendant’s version of the accident was that the brake lights of the Toyota came on as he was properly passing it, causing him to apply the brakes of his car and slide into the Toyota. He then fled the scene of the accident out of fear.
At the close of the trial, the jury found defendant guilty of aggravated assault for knowingly causing serious bodily injuries to Jeri Lyn Francisco and guilty of misdemeanor assault for negligently causing bodily injuries with a weapon to the others in the car. In his appeal of those convictions, defendant presents three issues to this Court:
(1) Whether defendant’s constitutional right against being placed in double jeopardy was violated when, as a result of the same transaction, defendant pled guilty in justice court to driving under the influence of alcohol and was later charged in District Court with aggravated assault?
(2) Whether there was sufficient evidence to prove defendant knowingly caused serious bodily injury to Jeri Lyn Francisco, so as to constitute an aggravated assault?
(3) Whether the convictions should be overturned as requiring two mutually exclusive mental states. to exist simultaneously?
Both before and during trial, defendant made motions to dismiss the aggravated assault charges against him. He alleged that a charge of aggravated assault would violate his constitutional right against being placed in double jeopardy as he had already pled guilty to another charge arising from the same accident, driving under the influence of alcohol. We disagree with defendant’s contention.
The applicable codification of defendant’s constitutional right against being placed in double jeopardy is found in section 46-11-504(1):
“46-11-504. Former prosecution in another jurisdiction-when a bar. When conduct constitutes an offense within the concurrent jurisdiction of this state and of the United States or another state or of two courts of separate, overlapping, or concurrent jurisdiction in this state, a prosecution in any such other jurisdiction is a bar to a subsequent prosecution in this state under the following circumstances:
“(1) The first prosecution resulted in an acquittal or in a conviction as defined in 46-11-503 and the subsequent prosecution is based on an offense arising out of the same transaction.”
Section 46-11-503(3)(c) defines conviction as including “a plea of guilty accepted by the court. . .” Therefore, section 46-11-504 may apply to defendant as his guilty plea is considered a conviction for purposes of that statute.
The prohibition against double jeopardy was construed by the United States Supreme Court in Blockburger v. U.S. (1932), 284 U.S. 299, 52 S.Ct. 180, 76 L.Ed. 306: “The applicable rule is that where the same act or transaction constitutes a violation of two distinct statutory provisions, the test to be applied to determine whether there are two offenses or only one, is whether each provision requires proof of a fact which the other does not.” 384 U.S. at 304, 52 S.Ct. at 182.
Driving under the influence of alcohol, § 61-8-401(1)(a), MCA, requires proof that the individual was under the influence of alcohol and proof that he was driving or in control of a vehicle while under the influence. Aggravated Assault, § 45-5-202(1)(a), MCA, requires proof defendant knowingly caused serious bodily injury. Assault, § 45-5-201(1) (b), MCA, requires proof defendant negligently induced injury with a weapon. Driving under the influence does not require proof of bodily injury. Assault does not re quire proof of intoxication. Each offense requires proof which the other does not. We therefore find no violation of defendant’s constitutional right against being placed in double jeopardy.
As his second contention, defendant asserts that there was insufficient evidence presented at trial on which a jury could base a determination that defendant knowingly caused serious bodily injury to Jeri Lyn Francisco. “Knowingly” is defined in part as follows:
“. . . A person acts knowingly with respect to the result of conduct described by a statute defining an offense when he is aware that it is highly probable that such result will be caused by his conduct. . .” Section 45-2-101(33), MCA.
A jury may use circumstantial evidence to determine the existence of a particular mental state. State v. Pascgo (1977), 173 Mont. 121, 126, 566 P.2d 802, 805. That is, they may infer the mental state from what the defendant does and says and from all the facts and circumstances involved. State v. Jackson (1979), 180 Mont. 195, 589 P.2d 1009. Flight by the defendant may be considered by the jury as a circumstance tending to prove consciousness of guilt. State v. Gone (1978), 179 Mont. 271, 277, 587 P.2d 1291, 1295.
During his interview with the investigator from the County Attorney’s Office, defendant admitted that he had consumed twelve beers, that he was intoxicated, and that he probably should not have been driving when the accident occurred. He also admitted fleeing the scene of the accident because of fear. Witnesses described defendant’s high rate of speed and illegal passing maneuvers. These facts support the jury’s determination that defendant knew there was a high probability that driving while under the influence of alcohol would cause serious bodily injury to another.
Defendant’s third contention is that the two verdicts are inconsistent in that they require mutually exclusive mental states to exist simultaneously. Although they arose from the same accident, one charge alleged defendant knowingly caused serious bodily injury to another while the second alleged defendant knowingly caused bodily injury to others with a weapon. The jury found defendant knowingly caused serious bodily injury to one victim, but as to the less seriously injured victims, the jury found defendant acted negligently and therefore convicted defendant of misdemeanor assault under § 45-5-201 (l)(b), MCA. However, we do not agree with defendant that the two mental states are mutually exclusive.
The aggravated assault conviction requires a mental state of “knowingly.” The assault conviction requires a mental state of “negligently.” They are not mutually exclusive mental states.
“Negligently” is defined in relevant part as follows:
“ . . .a person acts negligently with respect to a result or to a circumstance described by a statute defining an offense when he consciously disregards a risk that the result will occur or that the circumstance exists or when he disregards a risk of which he should be aware that the result will occur or that the circumstance exists. The risk must be of such a nature and degree that to disregard it involves a gross deviation from the standard of conduct that a reasonable person would observe in the actor’s situation. ‘Gross deviation’ means a deviation that is considerably greater than lack of ordinary care. . .” Section 45-2-101(37), MCA. (Emphasis supplied.)
The jury was so instructed.
The jury, in finding the knowledge required for aggravated assault, found that defendant was aware of the high probability that serious bodily injury would occur if he drove while under the influence of alcohol. Thus, defendant violated § 45-5-202(1)(a), MCA. It was not inconsistent for the jury to also find that defendant disregarded the risk that bodily injury would occur and thus found defendant guilty of criminal negligence, in violation of § 45-5-201(1)(b), MCA. Aggravated assault requires a knowledge which is aware and therefore understands that a certain re- suit is likely to follow. Misdemeanor assault, in its negligent form, requires only an indifference to result.
The mental state required to satisfy “knowledge” is more culpable than that for “criminal negligence” because the actor must know it probable that a result will follow. “Criminal negligence” can be shown if risk to others is disregarded. However, proof of knowledge necessarily proves the elements of criminal negligence. You cannot engage in conduct knowing it likely will harm others without, at the same time, disregarding the risk to those others. The mental states are therefore not mutually exclusive.
The judgment of the District Court is affirmed in its entirety.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, SHEEHY and WEBER concur.
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MR. JUSTICE McDONOUGH
delivered the Opinion of the Court.
Appellant Lorraine C. Frigon appeals from the judgment and order of the District Court of the Thirteenth Judicial District, Yellowstone County, granting summary judgment in favor of respondents Morrison-Maierle, Inc., William G. Enright and Larry W. Larsen. We affirm.
Appellant frames nine issues for consideration by this Court:
1. “Is a cause of action for breach of the employer’s covenant of good faith and fair dealing limited to wrongful termination, where Employer breached its own handbook requirements as to performance and related salary reviews.”
2. “Does the record present genuine issues of material facts as to whether Frigon has a cause of action for wrongful discharge on a constructive discharge theory.”
3. “Does the record present genuine issues of material fact sufficient to present Frigon’s cause of action for defamation.”
4. “Does the record present genuine issues of material fact as to whether a privilege exists to prevent a claim for defamation in this case.”
5. “Does the record present genuine issues of material fact sufficient to present a cause of action for negligent infliction of emotional distress on the part of any Defendant.”
6. “Does the record present genuine issues of material fact sufficient to present a cause of action for intentional infliction of emotional distress on the part of any Defendant.”
7. “Is Frigon’s claim for negligent or intentional infliction of emotional distress barred by the exclusivity provisions of Montana Workers Compensation Law?”
8. “Did the Court err in ordering Defendants their costs on summary judgment, where Defendants recovered no damages and did not ask for costs in their Motion for Summary Judgment.”
9. “Did the Court err in awarding Defendant as a cost on summary judgment the expense of Defendants taking Frigon’s deposition.”
Appellant was hired by respondent Morrison-Maierle as a part-time secretary/receptionist in January of 1984, and paid $5.50 per hour. Her immediate supervisors were respondents Enright and Larsen. The “Employee’s Handbook” produced by Morrison-Maierle and given to appellant soon after she was hired stated a policy of conducting employee performance reviews and annual salary reviews. These reviews were to be conducted by the employee’s immediate supervisor. When she was hired, appellant was informed that she would receive her first salary review in six months. In April of 1984, appellant became a full-time employee, and in July of 1984 she received a 29 cent per hour raise as part of a general annual office raise. Appellant was told by Enright that she was still due a merit raise, but he didn’t have time to do a performance evaluation on her.
In October of 1984 at appellant’s request, she was given a performance evaluation by respondent Larry Larsen, during which she was told that her work was satisfactory with the exception of some complaints about her filing things in the wrong place.
In November of 1984, Philip Green became branch manager of the office, and appellant’s supervisor. Appellant requested an annual salary review in January of 1985, but the record does not show that such a review was ever conducted. On July 15, 1985, appellant met with Green for a performance review. During this meeting, appellant was informed that while Green had recommended she receive a merit raise, the Helena office (headquarters of Morrison-Maierle) had denied the raise on the basis of prior negative comments about appellant’s job performance made to company officials in Helena by Enright and Larsen.
Appellant testified in deposition that Green had characterized the negative comments as “tremendous trifles” or “tremendous trivials”. Green indicated that he would personally re-evaluate appellant’s performance in three months, and if warranted, recommend a merit raise. He expressed his desire to work with appellant to resolve the problems in her working relationship with Enright and Larsen. He also said, however, that if the choice were his, he would look for another job rather than continue working with Enright and Larsen, who he said, “literally don’t like the way you squeeze the toothpaste.” Appellant testified that her response was that she would not let the two men bother her, to which Green said, “Good for you.”
Appellant requested that the negative comments be put into writing. The two men were at first reluctant to do so, but on July 25, 1985, she received a memorandum written by Enright and Larsen containing a list of ten criticisms. Appellant prepared a written response to these criticisms, which she gave to Green on Friday, July 26. On Monday, July 29, appellant tendered her resignation, and on December 11, 1985, initiated this lawsuit, alleging breach of implied covenant of good faith and fair dealing, constructive discharge, slander and negligent or intentional infliction of emotional distress. Respondents filed a motion for summary judgment on February 25, 1987, which the District Court granted. This appeal followed.
The standard for review of the grant or denial of a summary judgment motion is the same as that used by the trial court. Dare v. Montana Petroleum Marketing Co. (Mont. 1984), [212 Mont. 274,] 687 P.2d 1015, 41 St.Rep. 1735. In order for summary judgment to issue, the movant must show there is “no genuine issue as to all facts considered material in light of the substantive principles entitling the movant to a judgment as a matter of law.” Cereck v. Albertson's, Inc. (1981), 195 Mont. 409, 411, 637 P.2d 509, 511. “If the movant has met this burden, it then shifts to the non-moving party to demonstrate a genuine issue of material fact. Mere denial or speculation will not suffice, the non-moving party must show facts sufficient to raise a genuine issue.” Gamble Robinson Co. v. Carousel Properties (Mont. 1984), [212 Mont. 305,] 688 P.2d 283, 287, 41 St.Rep. 1757, 1761.
I.
Appellant contends the respondents breached their covenant of good faith and fair dealing with her by refusing to give her performance and salary reviews when required by the Employee’s Handbook, and by denying her a merit raise on the basis of negative and at least partially false comments made by her former supervisors, to which she had little or no opportunity to respond. Appellant disputes the District Court’s holding that a cause of action for breach of a covenant of good faith and fair dealing did not lie because appellant voluntarily resigned. According to appellant, our decisions in Dare and Gates v. Life of Montana Insurance Co. (1982) 196 Mont. 178, 638 P.2d 1063, establish breach of the covenant of good faith and fair dealing as a tort separate from wrongful discharge, thereby obviating the need for termination in order for this cause of action to lie. Appellant further argues that our decision in Drinkwalter v. Shipton Supply Co. (Mont. 1987), [225 Mont. 380,] 732 P.2d 1335, 44 St.Rep. 318, establishes that such a covenant can be breached “on-the-job” through sexual harassment.
All of the decisions of this Court involving a covenant of good faith and fair dealing have been limited to instances of express em ployee termination or constructive discharge. The appellant is correct in her assertion that breach of a covenant of good faith and fair dealing is a separate tort from wrongful discharge. The latter is premised on acts by the employer in violation of public policy, while the former is broader, and does not require a public policy violation. Dare, 687 P.2d at 1019-20. However, both Dare and Gates involved employee terminations. Breach of the covenant of good faith and fair dealing was established as a tort separate from wrongful discharge, but applicable only in cases of employee termination.
Our holding in Drinkwalter also fails to support appellant’s argument. Our holding in that case simply stated the plaintiff could plead established common-law causes of action in addition to distinct and different statutory causes of action such as the plaintiff’s sexual discrimination claim under the state Human Rights Act. Drinkwalter, 732 P.2d at 1338. The fact remains that the covenant of good faith and fair dealing is applicable only in cases of employee termination in this state.
The record contains the letter in which appellant voluntarily resigned from her job. There was thus no express termination. On these facts, there is no genuine issue of material fact as to appellant’s claim for breach of the covenant of good faith and fair dealing. As we will discuss below, appellant has failed to set forth sufficient facts to establish constructive discharge. Appellant’s argument therefore amounts to “mere denial or speculation” which is insufficient under our test in Gamble to avoid summary judgment. The District Court’s decision to grant summary judgment on appellant’s claim of breach of the covenant of good faith and fair dealing was therefore correct, and we affirm the court on this issue.
II.
Appellant next argues that she presented genuine issues of material fact as to her claim of constructive discharge. She argues that she was forced to resign because “the employer had deliberately accepted Enright and Larsen’s criticisms over the recommendations of her supervisor, contrary to its own policies.” Appellant points to comments by Green and former Morrison-Maierle secretary Phyllis Swindell that they would leave rather than continuing to work with Enright and Larsen as further evidence of appellant’s reasonable belief that she was being forced to resign.
Appellant’s brief states the test in Montana for constructive dis charge as “whether sufficient words or actions by the employer ‘would logically lead a prudent person to believe his tenure had been terminated.’ ” Hannifin v. Retail Clerks Int'l Ass'n (1973), 162 Mont. 170, 178, 511 P.2d 982, 987. She also notes, “A determination of constructive discharge depends on the totality of circumstances, and must be supported by more than an employee’s suggestive [sic] judgment that working conditions are intolerable,” and cites Snell v. Montana Dakota Utilities Co. (1982), 198 Mont. 56, 643 P.2d 841. There is room to dispute this characterization. Hannifin did not deal with constructive discharge, nor has that doctrine been recognized beyond discrimination cases such as Snell, where a high burden of proof was placed on the plaintiff.
Even assuming that appellant correctly states the test for constructive discharge in Montana, the facts do not support her argument. Appellant relies on the fact that she was denied a raise due to negative comments by Enright and Larsen. Looking at the “totality of the circumstances,” this was far from a situation that would lead a “prudent person to believe [her] tenure had been terminated.” She was denied a raise, but was never told that she was going to be fired. On the contrary, appellant testified in deposition that Green stated he wanted appellant to stay at her job, he would personally re-evaluate her in three months and if warranted recommend a raise, and he wanted all of the parties concerned to sit down and work out any differences (a suggestion initially made by Larsen). Green’s statement that if he were in appellant’s position, he would contemplate quitting does not rise to the level of intimating to appellant that she was being terminated. The appellant was instead laboring under her own subjective judgment that working conditions at MorrisonMaierle had become intolerable.
The appellant fails to raise a genuine issue of material fact as to her claim of constructive discharge. The District Court was correct in granting summary judgment, and we affirm the court’s order on this issue.
HI.
Appellant next presses her argument that she was defamed by respondents Enright and Larsen. According to appellant, the oral remarks of Enright and Larsen amounted to slander, and when those criticisms were reduced to writing, they were libelous.
The memorandum written by Enright and Larsen at appellant’s request contained the following ten criticisms of her job performance:
“1. Correspondence filing — copies not made or copies lost or copies placed in wrong file. Correspondence filed in wrong file, have had to send out to get copies from clients so we could have in our files.
“2. Reading file not always complete — every piece of correspondence should be filed for reading.
“3. Telephone questions pretaining [sic] to specific projects are to and should be referred to the project manager.
“4. Phone is a business phone — not to be abused.
“5. Does not realize importance of position: prompt and accurate measures should be taken concerning typing, packaging or mailing items requested as soon as possible.
“6. Lacking confidence in what she does.
“7. Can not or does not want to be creative — rely on others.
“8. Does not understand or remember content of correspondence.
“9. Repetitious tasks not undertaken without repeted [sic] help.
“10. Loss of a $100,000 check because of mis-address, after very specific instructions.”
The Montana legislature has defined defamation by statute as follows:
“Libel Defined. Libel is a false and unprivileged publication by writing, printing, picture, effigy, or other fixed representation to the eye which exposes any person to hatred, contempt, ridicule, or obloquy or which causes him to be shunned or avoided or which has a tendency to injure him in his occupation.” Section 27-1-802(3), MCA.
“Slander defined. Slander is a false and unprivileged publication other than libel which:
“(3) tends directly to injure him in respect to his office, profession, trade, or business, either by imputing to him general disqualification in those respects which the office or other occupation peculiarly requires or by imputing something with reference to his office, profession, trade, or business that has a natural tendency to lessen its profit.” Section 27-1-803, MCA.
Appellant argues that the comments made by Enright and Larsen tended to injure her in her occupation, as they called into question her competence, and tended to injure her financially, as they prevented her from obtaining a raise. .
The test applied by this Court in defamation cases is stringent. In Wainman v. Bowler (1978), 176 Mont. 91, 576 p.2d 268, we stated:
“Defamatory words to be actionable . . . must be of such a nature that the court can presume as a matter of law that they will tend to disgrace and degrade [the plaintiff] or cause him to be shunned and avoided. It is not sufficient, standing alone, that the language is unpleasant and annoys or irks him, and subjects him to jests or banter, so as to affect his feelings.”
Wainman, 576 P.2d at 271. (Emphasis supplied.) The comments made by Enright and Larsen were directed at areas of appellant’s job performance they felt were in need of improvement. The fact that these comments were not initially relayed to appellant may not have been good business practice, but there is no evidence to support a holding that they disgraced or degraded appellant as a matter of law. According to appellant’s own testimony, her supervisor characterized the comments as trivial and proposed a re-evaluation in a short time. If we were to accept appellant’s argument, every time an employee was denied a raise on the basis of dissatisfaction with elements of their job performance, the employer could be subjected to a defamation suit.
Furthermore, a basic tenet of the law of defamation is that an expression of opinion is generally not actionable. 50 Am. Jur. 2d, Libel and Slander, Section 14; see, e.g. Janklow v. Newsweek, Inc., 759 F.2d 644 (8th Cir. 1985). There is nothing in the comments to show a factual allegation that appellant was generally disqualified for her job. If that were the case, presumably Enright and Larsen would have taken steps to have appellant terminated. Instead, appellant’s deposition testimony shows that Larsen wished to sit down with Enright, Green and appellant and work out the problem. The facts relied on by appellant to show defamation instead reflect opinions rendered in the context of the evaluation of her performance on the job.
Appellant’s allegation that the District Court made an improper finding of fact in ruling that the comments quoted above were not defamation is incorrect. As we have held previously, facts are not found on summary judgment, as Rule 56, M.R.Civ.P., requires that there be no issue of material fact in order for summary judgment to issue. Major v. North Valley Hospital (1988) [233 Mont. 25,] 759 P.2d 153 at 155, citing Boise Cascade Corp. v. First Security Bank of Anaconda (1979], 183 Mont. 378, 600 P.2d 173. The evidence in this case does not raise a genuine issue of material fact regarding any possible defamation of appellant. Upon reviewing that evidence, the District Court correctly concluded that summary judgment would be proper on this issue, and we affirm that decision. Having so held, it will not be necessary for us to proceed further and consider the issue of privilege framed by appellant.
IV.
Appellant next contends that she set forth facts sufficient to establish a cause of action for negligent or intentional infliction of emotional distress. As to negligent infliction of emotional distress, appellant asserts this Court recognized that negligence can be a proper basis for recovery in a wrongful discharge case in Crenshaw v. Bozeman Deaconess Hospital (Mont. 1984), [213 Mont. 488,] 693 P.2d 487, 41 St.Rep. 2251. Appellant contends that the record contains genuine issues of material fact on this issue, in that “Enright and Larsen had to be either negligent or intentionally malicious in making statements about Frigon” when the mistakes complained of were attributable to others, including Enright and Larsen themselves. She also states that Morrison-Maierle was negligent in failing to determine whether the criticisms were warranted.
Appellant and respondents note that this Court has recognized the tort of negligent infliction of emotional distress in only limited situations, and cite Versland v. Caron Transport (1983), 206 Mont. 313, 671 P.2d 583, as their example. In Versland, we enunciated a three-part test for this tort:
“1. The shock must result from a direct emotional impact upon the plaintiff from the sensory and contemporaneous perception of [an] accident, as contrasted with learning of the accident from others after its occurrence.
“2. The plaintiff and the victim must be closely related, as contrasted with an absence of any relationship or the presence of only a distant relationship.
“3. Either death or serious physical injury of the victim must have occurred as a result of the defendant’s negligence.”
Versland, 671 P.2d at 588. Appellant does not meet this test, nor is her argument based on the Crenshaw case convincing. In Crenshaw, we held that an action for negligence could lie in a case of wrongful discharge. As discussed above, appellant has not presented facts sufficient to establish a cause of action for wrongful discharge.
Appellant’s claim of intentional infliction of emotional distress is premised on our decision in Gates and the Restatement (Second) of Torts. Appellant notes that in Gates, we addressed the plaintiffs claim for intentional infliction of emotional distress, although we did not uphold it. The opinion in Gates cited Kelly v. Lowney & Williams, Inc. (1942), 113 Mont. 385, 126 P.2d 486 (recognizing “recovery for damages for personal injuries occasioned by fright or mental shock though there be no physical contact”).
Emotional distress under Montana law has been and remains primarily an element of damages rather than a distinct cause of action. See, e.g. Gurnsey v. Conklin Co., Inc., (Mont. 1988), [230 Mont. 42,] 751 P.2d 151, 45 St.Rep. 1. Appellant, however, argues that our holding in Gates opened the door for such a cause of action, and urges that we apply the following elements to this case:
“One who by extreme and outrageous conduct intentionally or recklessly causes severe emotional distress to another is subject to liability for such emotional distress, and if bodily harm to the other results from it, such bodily harm.”
Restatement (Second) of Torts Section 46 (1965).
Appellant asserts that “Enright and Larsen intentionally and/or recklessly made false, negative statements about [appellant]”. She argues that the only remaining question is thus whether the conduct of the two men was “extreme and outrageous”. Appellant asserts that a material question of fact exists as to that conduct, citing her testimony that Green characterized the comments as trivial and yet expressed hesitance about giving appellant the written memorandum because of its harshness.
Appellant does not present a case that merits recognition by this Court of intentional infliction of emotional distress as a cause of action. Comment “d” to Section 46 of the Restatement explains the nature of the conduct necessary to impose liability:
‘‘Liability has been found only where the conduct has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.”
Restatement (Second) of Torts, Section 46, Comment d (1965). In Johnson v. Supersave Markets, Inc. (Mont. 1984), [211 Mont. 465,] 686 P.2d 209, 41 St.Rep. 1495, this Court enunciated a test for compensation of intentional infliction of emotional distress. In the context of an action for unlawful arrest or imprisonment, we held that such an element of damages would only be proper if the tortious conduct complained of resulted in “a substantial invasion of a le gaily protected interest and caused a significant impact upon the person of the plaintiff.” Johnson, 686 P.2d at 213 (Emphasis in original.).
There is no evidence in the record of this case which would support a claim for intentional infliction of emotional distress. The comments made by Enright and Larsen, and the failure of Morrison-Maierle to give appellant a raise are hardly instances of conduct that goes “beyond all possible bounds of decency.” Nor has appellant presented facts showing a substantial invasion of her legally protected interests. The law has yet to protect a person’s interest in receiving a merit raise.
The District Court correctly granted summary judgment on this issue, and we affirm that decision. Having so held, it is not necessary for us to proceed to the issue involving Montana Workers’ Compensation law framed by appellant.
Y.
Finally, appellant asserts that respondents were not entitled to costs in this case. She asserts that the District Court erred in awarding costs in that it did not follow Montana statutes on the subject:
“25-10-101. When costs allowed, of course, to plaintiff. Costs are allowed, of course, to the plaintiff upon a judgment in his favor in the following cases:
“(3) in an action for the recovery of money or damages, exclusive of interest, when the plaintiff recovers over $50;
“25-10-102. When costs allowed, of course, to defendant. Costs must be allowed, of course, to the defendant upon a judgment in his favor in the actions mentioned in 25-10-101.”
Sections 25-10-101 and 25-10-102, MCA. Appellant argues that under these statutes, respondents would be entitled to costs only if the judgment of the District Court awarded them a recovery of at least $50. No damages were awarded by the court, and appellant therefore asserts that no costs should have been allowed.
The prevailing party is generally entitled to costs. See, e.g. Carroceta v. Todd (1980), 189 Mont. 172, 615 P.2d 225. While the particular situation presented by this case is rarely before this Court, we are guided by our decision in Marcus v. Bowman (1940), 110 Mont. 412, 101 P.2d 68. In Marcus, we upheld an award of costs to a defendant whose counter-claim had been dismissed, but who prevailed on the merits of the plaintiff’s claim. The defendant was awarded nothing by the court as a recovery, but we upheld the award of costs to defendant as the prevailing party.
Appellant asserts that in particular, the District Court erred in allowing the cost of taking her deposition as part of the costs awarded to respondents. She asserts that the deposition was taken solely for the convenience of respondents, and was therefore not includable in the costs awarded under our decision in MorrisonMaierle v. Selsco (1980), 186 Mont. 180, 606 P.2d 1085. However, our decision in Roy v. Neibauer (Mont. 1981), [191 Mont. 224,] 623 P.2d 555, 38 St.Rep. 173 specifically held that depositions necessary for disposing of litigation by summary judgment were includable as costs. In this case, the briefs of both appellant and respondents before the District Court relied heavily on testimony taken from appellant’s deposition in arguing for and against summary judgment. The memorandum of the District Court also referred to information from that testimony. Appellant’s deposition was therefore necessary for disposal of this litigation by summary judgment, and was properly included by the District Court in the award of costs. We affirm the ruling of the District Court on this issue.
Our review of the record in this case shows that appellant failed to present facts sufficient to raise a genuine issue of material fact concerning any of her alleged causes of action. The District Court was therefore correct in granting respondents’ motion for summary judgment.
We affirm the judgment of the District Court.
MR. JUSTICES HARRISON, WEBER, SHEEHY and GULBRANDSON concur.
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ARNOLD OLSEN, District Judge,
sitting in the vacant seat on the Court, delivered the opinion of the Court.
Defendants appeal the judgment of the District Court, Missoula County, convicting them on two counts of criminal possession of dangerous drugs, both felonies, following a trial without a jury.
On September 27, 1976, defendant David Means entered a plea of guilty to a charge of criminal possession of dangerous drugs. He was subsequently sentenced to serve three years in the Montana state prison. Imposition of sentence was suspended and David Means was placed on probation. The judgment contained the following condition:
“2. That the Defendant shall submit himself, his residence and vehicle to search at any time by Probation Officers, Peace Officers or other lawful authorities, without a search warrant and without the need to show probable cause.”
Counsel for defendant David Means objected to the imposition of the condition at the time it was imposed as being violative of Fourth Amendment guarantees against unreasonable searches and seizures.
The facts regarding Maureen Means are the same, except the condition in question was imposed as part of a deferred prosecution agreement.
On November 8, 1976, information was received from a confidential informant which indicated to Officer Lambert of the Region One Anti-Drug Team that drug trafficking was possibly taking place at the residence of defendants. The information was related by a neighbor of defendants. The neighbor stated that numerous cars were coming to the residence, staying for short periods of time, and then leaving. As a result, Officer Lambert, on November 9, 1976, began surveillance for six nights revealed that several people, known by the drug team to be involved in the drug trade, were continually coming to the residence, staying for short periods of time, and leaving. Prior to this surveillance, Officer Lambert received information, which he could not corroborate, that David Means was selling dangerous drugs at the Missoula Vocational Technical School.
On December 13, 1976, Lambert decided to approach David Means and search his residence to see if he was in possession of dangerous drugs. Lambert intended to execute the search under the warrantless search clause imposed on October 14, 1976. The suppression hearing transcript clearly shows that the officers based their search on the probation condition authorizing warrantless searches and seizures. On cross-examination, Lambert was asked whether defendants requested that a search warrant be produced. The officer responded:
“Yes, Sir. I informed him that we had suspicion to believe that there was dangerous drugs in the house and that we would search his house, and at that point the Defendant asked if we had a search warrant. At that point I reminded the Defendant that he was under probation and he had accepted as part of his probation to allow himself, residence, and vehicle to be searched at any time by a peace officer and at that time we were exercising that right.”
As Officers Lambert, Victor and Wicks arrived at defendants’ residence, David Means was observed walking up to the front door of the residence. David Means noticed the officers approaching and reacted quickly by going into the house and slamming the door. Officer Victor went to the rear of the house while Officers Lambert and Wicks went to the front door. Lambert and Wicks detected the odor of marijuana emanating from the house. While standing outside the door, they also heard what they thought to be a toilet flushing. After knocking, Maureen Means opened the door approximately twenty seconds thereafter.
After entering the house, Lambert and Wicks immediately proceeded to the bathroom where they found David Means standing over the toilet and observed marijuana circling in the toilet bowl as if it had been flushed. The residence was secured and the accused were informed by Lambert that he had reason to believe there were dangerous drugs in the house. The accused were instructed to sit down. Prior to taking a seat, David Means was searched by Lambert, who found a small paper packet of white powder in the shirt pocket of David Means. At that point, David Means was informed that he was under arrest. He reacted to Lambert’s discovery by slapping the powder out of his hands and resisting Lambert’s attempt to restrain him. After subduing David Means, the search was continued.
In the bathroom Wicks located marijuana in the toilet bowl weighing approximately 20.0 grams, as well as underneath the bathtub in a hole in the floor, which weighed 25.7 grams. Wicks also found hashish weighing 1.8 grams wrapped in a plastic bag between two mattresses on a bed in the bedroom. Victor found another paper bag of marijuana, weighing approximately 25 grams, in the back room of the house.
The marijuana and hashish were sent to the Montana State Crime Laboratory, where analyses revealed that the suspected substance were what the officers had surmised them to be. The marijuana was found to weigh 70.0 grams in total, and the hashish, 1.8 grams.
On April 27, 1977, defendants were convicted of two counts of criminal possession of dangerous drugs, following a trial without a jury. From this conviction, defendants appeal.
Defendants contend that in the instant case, the police had no probable cause, nor exigent circumstances, which would justify the warrantless search. They argue that the law enforcement officials accomplished the search and seizure strictly on the basis of the probation condition heretofore noted. Defendants maintain such a condition is unreasonable and violative of a probationer’s constitutional rights, for the following reasons:
1. The consent given by a probationer to such a clause is not voluntary;
2. The condition is not reasonably related to rehabilitation; and
3. The condition is violative of a probationer’s Fourth and Fifth Amendment rights.
Plaintiff contends the law enforcement officers had probable cause to believe an offense was being committed in defendants’ residence and, because of the presence of exigent circumstances, were, justified in entering and arresting defendants and searching defendants and their premises immediately under their control. Plaintiff thus argues that, under the facts of this case, the constitutionality of the warrantless search and seizure condition of parole and probation status is irrelevant. We agree.
Section 95-608, R.C.M.1947, states:
“A peace officer may arrest a person when:
“ * * *
“(d) He believes on reasonable grounds, that the person is committing an offense or that the person has committed an offense and the existing circumstances require his immediate arrest.”
In addition section 95-702(c) and (d), R.C.M. 1947, state:
“* * * a peace officer may reasonably search the person arrested and the area within such person’s immediate presence for the purpose of:
<<* * Me
“(c) Discovering and seizing the fruits of the crime, or
“(d) Discovering and seizing any persons, instruments, articles or things which may have been used in the commission of, or which may constitute evidence of, the offense.”
Although no definitive rulings of this Court have been made involving these specific facts, this Court has previously dealt with cases considering whether the odor of marijuana is a factor contributing to probable cause for search and arrest, in State v. Hull (1972), 158 Mont. 6, 487 P.2d 1314 and State v. Bennett, (1972), 158 Mont. 496, 493 P.2d 1077.
In Hull this Court determined defendant’s arrest was based on reasonable grounds, in compliance with section 95-608(d), R.C.M.1947, where prior to their entry arresting officers had received information that a “pot party” was in progress, the defendant was a guest at the party and the aroma of burning or burnt marijuana was emanating from the residence. The officers entered the residence and arrested several persons, one of whom was defendant, even though no marijuana was observed visually by the officers at the time of their entry. A search of defendant yielded an amphetamine tablet. The entry into the house, the arrest of the occupants, and the search of their persons and the premises was conducted without either an arrest or search warrant. Yet the Court determined the entry into the residence for purpose of effecting an arrest and searching defendant incident to that arrest constitutionally and statutorily permissible.
In Bennett officers had received information indicating drug activity was taking place at defendant’s apartment. They had also received information that one of the defendants was a drug dealer. Based upon this information, the officers went to the apartment to investigate. When they arrived, they observed one defendant, a suspected drug dealer, enter the apartment. When the officers approached the apartment, they noticed the odor of burning marijuana emanating from the open door of the apartment. The officers entered the apartment, walked up a short flight of stairs, and observed the defendants sitting around a table upon which was marijuana. The defendants were immediately arrested and the marijuana seized. The Court held the entry into the apartment to arrest and the search incident thereto constitutionally permissible.
It is clear that Hull and Bennett stand for the proposition that the odor of burning or burnt marijuana, together with other facts tending to establish probable cause, is sufficient justification for an officer to enter the residence for the purpose of effecting an arrest and searching incident thereto.
There are additional cases from other jurisdictions, particularly cogent to our inquiry herein.
In People v. Bock Leung Chew, (1956), 142 Cal.App.2d 400, 298 P.2d 118, two officers had entered an apartment building, and were proceeding to a certain apartment when, walking by the door to the defendant’s apartment, they smelled opium. The officers were admitted to the apartment by the defendant’s wife, the sole person present. The officers searched the premises and, under the kitchen cupboard, found smoking opium. The officers searched the premises from 9:15 p.m. until 11:00 p.m. having neither a search warrant nor a warrant of arrest. The California Court held that where officers detect the odor of a substance, the possession of which constitutes a felony, they are justified in believing an offense is being committed in their presence and can make immediate entry into the residence from which the odor emanates and search such residence without first procuring a warrant. 298 P.2d 119.
Similarly, in Vaillancourt v. Superior Court for County of Placer, (1969), 283 Cal.App.2d 791, 78, Cal.Rptr. 615, the Court held that police officers had probable cause to enter a hotel room and effect an arrest when walking down the hallway, they detected the smell of burning marijuana. The Court further stated that the smell indicated the contraband was, in fact, being destroyed.
Relying specifically on People v. Bock Leung Chew, supra, is State v. McGuire, (1971), 13 Ariz.App. 539, 479 P.2d 187. In McGuire an officer was informed that the smell of burning marijuana was coming from an apartment. The officer, upon approaching the apartment door, also detected the odor. He further noted a commotion in the apartment before the door was opened, and heard the flushing of a toilet. The officer ran into the apartment bathroom after admittance, where he found a marijuana cigarette floating in the toilet. In holding that the officer had probable cause to enter and arrest, the Arizona court stated:
“The weight of authority, and we believe the better rule, holds that the offense is committed in the presence of an officer ‘when the officer receives knowledge of the commission of an offense in his presence through any of his senses.’ * * * “The evidence amply demonstrates probable cause for the arest, namely: Schmale’s complaint verified by the strong odor of burning marijuana detected by Wingfield. The prompt police action, frustrating the attempted destruction of contraband, was reasonable and incidental to a lawful arrest.” 479 P.2d 189.
The identical rationale appears in current cases, as well. In State v. Zamora, (1977), 114 Ariz. 75, 559 P.2d 195, the defendant on appeal, contested the validity of the search of the trunk of his automobile based upon the “very faint” odor of marijuana detected by the arresting officer, who had initially stopped the vehicle for a speeding violation. The court affirmed the validity of the search. 559 P.2d 197.
Under the facts of the instant case, in addition to the odor of marijuana and the flushing of the toilet, which contributed to the evidence of probable casue to arrest, there existed the furtive conduct of David Means observed by Officers Lambert and Wicks. A furtive movement or gesture, in combination with other suspicious circumstances, can provide legal justification for a search by the officer observing the conduct. People v. Powell, (1974), 40 Cal.App.3d 107, 115 Cal.Rptr. 109; People v. Conley (1971), 21 Cal.App.3d 894, 98 Cal.Rptr. 869.
We answer in the affirmative the question of whether probable cause to believe an offense was being committed existed, thus permitting a warrantless entry into defendants’ residence to search and arrest. The prior knowledge of defendants’ illicit drug involvement, the informant’s report concerning David Means’ drug enterprise at the Missoula Vocational Technical School, the surveillance of defendants’ residence the observance of the unusual strategy of Maureen Means noted during the surveillance, the furtive conduct of David Means when confronted by the police on December 13, 1976, the recognition of the odor of marijuana by Officers Lambert and Wicks, the delay in opening the door, and hearing the flushing of the toilet, when considered together, can leave no doubt that probable cause existed to enter defendants’ residence to search and arrest.
Defendants rely heavily upon the case of Johnson v. United States, (1948), 333 U.S. 10, 68 S.Ct. 367, 92 L.Ed. 436, to support their contention that a warrant to search should have been obtained by Officer Lambert. The facts of Johnson are substantially similar to those of the instant case. The reliance by defendants upon Johnson, however, is somewhat misplaced. The United States Supreme Court did suppress the evidence seized in Johnson, but did not indicate that a warrant must be procured to enter a dwelling in every event. The Court stated:
“There are exceptional circumstances in which, on balancing the need for effective law enforcement against the right of privacy, it may be contended that a magistrate’s warrant for search may be dispensed with. But this is not such a case. No reason is offered for not obtaining a search warrant except the inconvenience to the officers and some slight delay necessary to prepare papers and present the evidence to a a magistrate. * * * No suspect was fleeing or likely to take flight. The search was of permanent premises, not of a movable vehicle. No evidence or contraband was threatened with removal or destruction, except perhaps the fumes which we suppose in time would disappear. * * *” 333 U.S. 14, 68 S.Ct. 369, 92 L.Ed. 440-441.
Thus, the Court inferred, and in fact it has been so held by other courts, that had any one of those exceptional circumstances been present, no need for a magistrate’s warrant would have existed. In the case presently before us, there did exist a suspect who was fleeing, and contraband or evidence which was threatened with removal or destruction. It was proper, then, even under the rationale of Johnson, to proceed without a warrant in this case.
Further, the prosecution in Johnson conceded the arresting officer did not have probable cause to arrest until he entered the defendant’s apartment, thereby precluding the Court from considering the threshold question of whether the officer was justified in entering without a warrant to arrest, and the corollary question of whether the search was incident to that arrest.
The State makes no such concession here. Rather the State contends probable cause to arrest existed before the police ever set one foot inside defendants’ residence. Johnson is therefore inapplicable here, except insofar as the facts of this case fall within the “exceptional circumstances” rule. As this Court stated in State v. Bennett:
“Since Johnson in 1948, courts have recognized exceptional circumstances which permit entry and arrest and expand the narrow view adopted in Johnson. * * *” 158 Mont. 502, 493 P.2d 1080.
If probable cause to arrest exists before the search takes place, it is immaterial that the search preceded the actual arrest, provided that the search and arrest are part of one continuous transaction. This rule is grounded on the common sense principles that it is often difficult to pinpoint the precise moment of arrest, and that it is often necessary, because of exigent circumstances, to search first, in order to safeguard evidence, and then make the formal arrest. State v. Barnes, (1976), 220 Kan. 25, 551 P.2d 815; People v. Wright, (1969), 273 Cal.App.2d 325, 78 Cal.Rptr. 75.
In addition to verbalizing the rule in the manner described above, the court in Barnes explained the rationale behind the rule as follows:
“Under these circumstances a search of defendant’s person was held valid and evidence obtained from the search was admissible at trial. The justification for such an intrusion is the probable cause to believe that the individual has committed a crime and the need for immediate action to prevent the use of weapons against the arresting officer or destruction of evidence of the crime. (Citing cases.) Postponement of the further intrusion of arrest does not remove the justification for the search and in no way prejudices the individual’s Fourth Amendment rights.” 551 P.2d 819.
Such is precisely what occurred in the instant case. Officer Lambert had probable cause to believe defendants had committed or were committing a crime in his presence. He also had a reason to believe that evidence or contraband was threatened with removal or destruction, thereby mandating immediate action to prevent such removal or destruction. As a result, Officer Lambert did not arrest defendants until after the search had begun-, choosing instead to preserve the evidence or contraband first, and then to effect an arrest. As the cases above indicate, this method of proceeding in no way taints the evidence seized prior to the actual arrest.
We further conclude the search of defendants’ residence was within the scope of a search incident to an arrest.
The case of State v. Callaghan, (1964), 144 Mont. 401, 396 P.2d 821, settled the law in Montana relating to the scope of the area to be searched incident to an arrest. This Court, in Callaghan, stated:
“* * * A search may be made pursuant to a valid arrest without a search warrant. United States v. Lefkowitz, 285 U.S. 452, 52 S.Ct. 420, 76 L.Ed. 877 [82 A.L.R. 775] (1932); Agnello v. United States, 269 U.S. 20, 46 S.Ct. 4, 70 L.Ed. 145 (1925); 51 A.L.R. 409. It is permissible to search a dwelling where a valid arrest had been made there Harris v. United States, 331 U.S. 145, 67 S.Ct. 1098, 91 L.Ed. 1399 (1947). The objects of such a search are the fruits and instrumentalities of the crime. However, the arresting officer may not indiscriminately root through the dwelling just because there has been an arrest there. Carlo v. United States, (2nd Cir. C.A. 1961), 286 F.2d 841, cert. denied, 366 U.S. 944, 81 S.Ct. 1972, 6 L.Ed.2d 855. The search must be reasonable in scope.” 144 Mont. 407, 396 P.2d 824.
This Court found the search of the dwelling in Callaghan reasonable where two men had been arrested in the premises, and the search was one of the most likely places where the fruits and instrumentalities of the crime might be hidden.
Here, the scope of the search was for fruits and instrumentalities of the crime, as provided for by section 95-702, R.C.M.1947, and was reasonable as mandated by Callaghan. The officers did not root through the dwelling simply because of the arrest, but rather searched the most likely places of hiding.
Callaghan defines the arrestee’s dwelling, under the circumstances present there, as that within his immediate presence, which in turn is referred to in section 95-702 as the permissible scope of such a search. Likewise, the search here of defendants’ dwelling, because of the circumstances, was a search-of an area within their immediate presence. We find the search as conducted here did not infringe upon defendants’ constitutional or statutory rights. Based upon the foregoing, the search of defendants’ residence was not unreasonable, nor overly broad in scope.
As both the search and arrest were conducted in a constitutionally permissible manner, we affirm the judgment convicting defendants on both counts of criminal possession of dangerous drugs.
We note there was much emphasis in argument by counsel for the parties, and in questions from this Court concerning the validity of a condition of probation authorizing a warrantless search of probationers. As our holding above disposes of this case, this issue need not be reached in this opinion. However, we determine that limited discussion of a central facet of the issue is necessary.
Defendants contend that execution of a probationer search clause by law enforcement officers can never be a proper condition of probation. In so arguing, defendants rely primarily upon the decision in United States v. Consuelo-Gonzalez, (9th Cir. 1975), 521 F.2d 259, wherein it was held that execution of a search clause by law enforcement personnel was not in keeping with the Federal Probation Act, 18 U.S.C. § 3651, as amended, although execution of such a clause by a probation officer is in keeping with the Act.
The distinction between probation and police officers is attributable to the fact that the Federal Probation Act has been interpreted by the federal courts as emphasizing reformation and rehabilitation, rather than contemplating the dual objectives of rehabilitation and protection of the public.
The Montana sentencing statute, section 95-2206, R.C.M.1947, states that any reasonable conditions deemed necessary for rehabilitation or for the protection of society may be imposed. Either or both of these objectives may be considered when imposing sentence. This statute has at no time been interpreted to emphasize rehabilitation alone, as has the Federal Probation Act. Thus, we conclude a search clause as a condition of probation need not relate solely to the objective of rehabilitation. The court, in Consuelo-Gonzalez, admitted as much in stating:
“* * * It is obvious, however, that opinions differ as to what controls are improper, and we express no opinion here regarding the extent to which the states constitutionally may impose conditions more intrusive on the probationer’s privacy than those we here have indicated are proper under the Federal Probation Act. * * *” 521 F.2d 266.
Nonetheless, the distinction drawn by the court in Consuelo-Gonzalez does nothing but encourage law enforcement personnel to go to the probation officer, who can then search the probationer pursuant to the search clause. In our view, such a procedure is nothing more than an unnecessary game of obstruction. There is no doubt that inquiry into the private life of a probationer is a necessary prerequisite to rehabilitation. As stated by the court in Consuelo-Gonzalez, “Probation authorities also have a special and unique interest in invading the privacy of probationers.” 521 F.2d 266.
The more rational approach is that outlined in People v. Bremmer, (1973), 30 Cal.App.3d 1058, 106 Cal.Rptr. 797:
“* * * A condition of probation that subjects a convicted person to search and seizure at any time may serve a useful purpose by providing a workable alternative to imprisonment of the convicted person. Patently, the constitutional rights of a probationer-like the rights of those convicts who have been imprisoned-are circumscribed by the judgment of conviction and not coterminous with those possed by persons whose status remains unimpaired by conditions of probation imposed by court order. The probationer, like the parolee, has what is euphemistically known as a reduced expectation of privacy. (Citing cases.) * * *” 106 Cal.Rptr. 800.
In addressing the situation involving execution of a search clause by a police officer, the court in Bremmer noted:
“Since a peace officer’s primary concern lies with enforcement of the law and not with rehabilitation of a probationer, the officer’s exercise of authority is ordinarily activated only by violations, or seeming violations, of public order and safety. When a known probationer subject to warrantless search is discovered conducting himself in a manner that suggests a resumption of the misconduct that brought about the condition of probation, a peace officer may exercise the authority of a general search order to search. The officer’s search is a search on suspicion only, but a suspicion grounded on present activity as related to past performance, * * *” 105 Cal.Rptr. 802.
Under the rationale of Bremmer it is plain that the search of defendants in this case was reasonable. The search conducted here not only protected the public, but promoted the rehabilitation of defendants as well. All have agreed that defendants have benefited considerably from the experience of this case.
We therefore conclude that execution of a probationer search clause by law enforcement personnel, being instrumental in achieving the objectives of probation, is a proper condition of probation.
The judgment of conviction is therefore affirmed.
MR. CHIEF JUSTICE HASWELL, and MR. JUSTICE HARRISON concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the court.
Petitioner, Kevin T. Murphy, filed a pro se application for habeas corpus on April 10, 1978. By order of July 21, 1978 this petition was denied as a proceeding for habeas corpus but it was decided that the portions of the petition concerning sentence imposed upon the petitioner would be treated as a petition for post conviction relief under Title 95, Ch. 26, R.C.M. 1947, now Title 46, Ch. 21 MCA.
Kevin T. Murphy was found guilty by a jury on September 23, 1976 of a burglary committed on May 3, 1976. He was sentenced on, October 1, 1976 to confinement in the State Prison for the term of not less than 10 years. The order of commitment contains the following:
“It is further ordered and adjudged and this order does order and adjudge that said defendant, Kevin T. Murphy, is a persistent offender, and that said Defendant receive no credit for the time served to date in the Silver Bow County Jail. That the defendant is not to be granted good time as a first offender, but must earn his own credit for good time.”
One issue raised by petitioner is whether a letter dated September 28, 1976 addressed to the sentencing judge and signed by John Lynch as parole and probation officer at Butte, Montana was used as a presentence report by the judge at the sentencing on October 1, 1976.
The memorandum filed by the Silver Bow County Attorney in response to the court order of July 21, 1978 raised factual questions as to his letter. The court ordered an evidentiary hearing in the District Court. The hearing was held on January 26, 1979 and on February 14, 1979 the judge of the District Court filed an order and judgment with this Court.
In part the order states:
“That an evidentiary hearing was had and a report dated September 28, 1976 of the Pardon and Parole Officer, namely John Lynch, was entered in evidence, and said report was recognized by the court as being the same as was served upon the parties and delivered to the Court before sentencing in this matter which had occurred on the first day of October, 1976.”
The order then confirmed the order of October 1, 1976.
The Silver Bow County Attorney’s brief states:
“This letter, dated September 28, 1976, is in the form of an arrest record of the Defendant while under the supervision of Probation and Parole Office. This letter is not in the proper form of a presentence as required by Section 95-2004, [95-2204] R.C.M. 1947 (now section 46-18-112 MCA) . . .”
The letter after listing ten arrests from March 1973 to February 1976 concluded as follows:
“Along with the current charge, there have been a total six charges involving burglary that Kevin Murphy has been involved during the time this office has been associated with him — a period of a little over three years.
“During this time, we have attempted to work with him in every way possible. We have tried to get him help for his drug and alcohol problems but he has been totally unreceptive..
“At this time, the only alternative I can recommend is incarceration in Montana State Prison.”
The memorandum of the Silver Bow County Attorney states:
“In March, 1973 petitioner KEVIN T. MURPHY entered a plea of Guilty to the charge of Burglary, a Felony, in the District Court of the First Judicial District, Lewis and Clark County, and received a three (3) year Deferred Imposition of Sentence. In Septemeber , 1974 the Petitioner entered a plea of Guilty to the charge of Burglary, a Felony, in the District Court of the Second Judicial District, Butte-Silver Bow County, and received a one (1) year Deferred Imposition of Sentence. The Petitioner completed the probationary period in both cases without being revoked. Motions by the Petitioner to have these Guilty Pleas expunged from the Court records were not filed until November, 1977.
“Based on the two (2) above-mentioned cases the Petitioner was found to be a persistent Felony offender, pursuant to Section 95-2206.5, R.C.M. 1947, (section repealed by section 6, Ch. 340, Laws of 1977) after he was fo.und guilty of Burglary, a Felony, on October 1, 1976. . .
From the above it is clear the letter of September 28, 1976 was used as a presentence investigation. Further it did hot comply with the requirements of section 95-2204, R.C.M. 1947, now 46-18-112 MCA, and while there may be discretion in the trial judge not to order a presentence investigation under section 95-2203, R.C.M. 1947, now 46-18-111 MCA, such was not the case here; especially where the report was used to find the defendant a persistent offender. Under section 95-2206.5, enacted by Section 2, Ch. 312, Laws of 1975. Repeated by Section 6, Ch. 340, Laws of 1977.
Also enacted by Ch. 312 as Section 3, Laws of 1975 was an amendment of section 95-3214, R.C.M. 1947, now section 46-23-201 MCA but amended by Section 60, Ch. 184, Laws of 1977, amended Section 3, Ch. 340, Laws of 1977, and amended Section 3, Ch. 580, Laws of 1977, which provided that no convict serving a time sentence could be paroled until he had served at least one-third of his full term, less good time allowance off if he were designated a persistent felony offender under section 95-2206.5 as opposed to serving one-fourth of a full term less good time allowance off if not a persistent felony offender.
The defendant therefore is entitled to be returned to the District Court in Silver Bow County for resentencing for the following reasons:
(1) The letter of September 28, 1976 did not comply with section 95-2204, R.C.M. 1947, now 46-18-112 MCA, and the procedure set out in Kuhl v. District Court (1961), 139 Mont. 536, 366 P.2d 347, 351.
(2) The denial of credit for time served in the Silver Bow County jail before conviction is error. Section 95-2215, R.C.M. 1947’, now section 46-18-403 MCA, states:
Credit for incarceration prior to conviction, (a) Any person incarcerated on a bailable offense and against whom a judgment of imprisonment is rendered shall be allowed credit for each day of incarceration prior to or after conviction . . .”
Such credit is granted by the statute as a matter of right. Maldonado v. Cristi (1973), 162 Mont. 240, 510 P.2d 887; State ex rel. Bovee v. District Court (1973), 162 Mont. 98, 508 P.2d 1056; In the Matter of Hanson (1976), 169 Mont. 80, 544 P.2d 816; Matter of LeDesma (1976), 171 Mont. 54, 554 P.2d 751.
The remaining issue presented is not ready for decision. As stated above the court apparently relied on two previous deferred impositions of sentence to find defendant a persistent felony offender under section 95-2206.5, R.C.M. 1947 as it existed on October 1, 1976.
Section 95-2207, R.C.M. 1947, now 46-18-204 MCA, provides for dismissal after deferred imposition.
“Whenever the court has deferred the imposition of sentence, and after termination of the time period during which imposition of sentence has been deferred, upon motion of the court, the defendant or the defendant’s attorney, the court may allow the defendant to withdraw his plea guilty from the record, and order that the charge or charges against him be dismissed.”
Here the defendant did not move until November 1977, more than a year after the October 1, 1976 sentence, to have the pleas of guilty withdrawn and the charges dismissed.
As to the question of whether a guilty plea followed by a deferred imposition of sentence can be relied upon by the state as a prior felony conviction in order to invoke the persistent felony offender statute, sufficient facts are not known. As this matter must be returned to the District Court for resentencing the issue should be addressed by the District Court.
In passing it should be noted that other courts have come to different conclusions on this or similar issues. See State v. Drew (1971), 158 Mont. 214, 490 P.2d 230.
Judge Russell Smith refers to it as “adopting the Omar Khayyam approach ”, Fite v. Retail Credit Company (D.C.Mont. 1975), 386 F.Supp. 1045, 1047.
For a good discussion of the development of the similar California statute, California Penal Code, Sec. 1203.4, see State v. Walker, 14 Wash.App. 348, 541 P.2d 1237, 1240; see also State v. Bock (1958), 80 Idaho 296, 311, 328 P.2d 1065; Padilla v. State (1977), 90 N.M. 664, 568 P.2d 190; (1949) 2 Stanford L.Rev. 221; (1954) 27 S.Cal.Rev. 327.
As to the definition of conviction under such a statute see 12 S..Cal.L.Rev. 201.
Effect of expungement on criminal conviction (1967), 40 S.Cal.L.Rev. 127; Expungement myth (1963), 28 Los Angeles Bar Bulletin (1963) 161; Wiping out a criminal or juvenile federal jury, L. Baum (1965), 40 S.Bar J. 816.
The sentence is vacated and the cause remanded to the District Court with directions to resentence petitioner Kevin T. Murphy in a manner not inconsistent with this opinion.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY, concur.
|
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JUSTICE McDONOUGH
delivered the Opinion of the Court.
This is an appeal from an order of the Thirteenth Judicial District, Yellowstone County. Appellant and Defendant, Brien Panasuk (Panasuk) challenges the jurisdiction of the City Court of Billings to hear and determine criminal public nuisance charges brought under §§ 45-8-lll(l)(a) and (b), MCA. The District Court held that the City Court did have jurisdiction. We affirm.
The sole issue for our review is whether or not the City Court has jurisdiction to hear and determine criminal public nuisance charges for violation of §§ 45-8-lll(l)(a) and (b), MCA.
The City of Billings filed, in City Court, four complaints; one alleging that Panasuk violated § 45-8-lll(l)(a), MCA, and three alleging violation of § 45-8-lll(l)(b), MCA. Panasuk operates an after hours club that caters to under age patrons. The charges allege Panasuk knowingly maintained an area, the parking lot adjacent to his club, where persons gathered for the purpose of engaging in unlawful conduct. Unlawful conduct cited in the complaints include: shootings, a stabbing, disturbances, curfew violations, criminal mischief, criminal misdemeanors, numerous open container violations and misdemeanor possession of liquor.
The City Court concluded that it had jurisdiction and subsequently imposed fines on each of the complaints. In addition, the City Court sentenced Panasuk to six months in the county jail which was suspended on conditions. Panasuk appealed to the District Court challenging the City Court’s jurisdiction over the matter. The District Court upheld the City Court’s jurisdiction, relying on § 3-11-102, MCA, which grants the City Court jurisdiction over misdemeanors.
Section 45-8-111, MCA, the section under which Panasuk was charged, provides in relevant part:
45-8-111. Public nuisance. (1) “Public nuisance” means:
(a) a condition which endangers safety or health, is offensive to the senses, or obstructs the free use of property so as to interfere with the comfortable enjoyment of life or property by an entire community or neighborhood or by any considerable number of persons;
(b) any premises where persons gather for the purpose of engaging in unlawful conduct; or
(6) A person convicted of maintaining a public nuisance shall be fined not to exceed $500 or imprisoned in the county jail for a term not to exceed 6 months, or both. Each day of such conduct constitutes a separate offense.
The penalty imposed in sub-section 6 makes violation of § 45-8-111, MCA, a misdemeanor. See § 45-2-101(36), MCA.
Section 46-2-203, MCA, provides the City Court criminal jurisdiction as authorized by § 3-11-102, MCA. Section 3-11-102(1), MCA, provides:
3-11-102. Concurrent jurisdiction. (1) The city court has concurrent jurisdiction with the justice’s court of all misdemeanors and proceedings mentioned and provided for under chapter 10, part 3, of this title.
Chapter 10, part 3, of this title, as referenced above, includes:
3-10-303. Criminal jurisdiction. ...
(1) jurisdiction of all misdemeanors punishable by a fine not exceeding $500 or imprisonment not exceeding 6 months or both such fine and imprisonment: ...
Following these statutes, it is clear that City Court has jurisdiction over criminal misdemeanor charges. Furthermore, it is clear that violation of § 45-8-111, MCA, the section under which Panasuk was charged, is a misdemeanor.
Panasuk contends that § 3-10-301(l)(b), MCA, precludes a city court from hearing actions involving the title to, or possession of real property. Panasuk cites several statutory provisions as demonstrating the legislative policy that matters involving title to or possession of real property are beyond the jurisdiction of non-record courts. § 25-31-102, MCA, § 3-10-301, MCA, Rule 4(B)(1)(c), M.R.Civ.P. Furthermore, Panasuk argues that under § 45-8-112, MCA, any action to abate a nuisance must be brought in the name of the state and because abatement is a form of injunctive relief, the district court has exclusive jurisdiction. Citing § 3-10-301(l)(h), MCA. Finally, Panasuk argues that the exclusive remedies for public nuisance, both civil and criminal, are found in § 27-30-202, MCA, which provides:
27-30-202. Remedies for public nuisances. (1) The remedies against a public nuisance are:
(a) indictment or information;
(b) a civil action; or
(c) abatement.
(2) The remedy by indictment or information is regulated by Titles 45 and 46.
Panasuk contends that under the guidelines of the foregoing statute, a criminal prosecution for public nuisance cannot be commenced by a complaint, but only by indictment or information. The instant prosecution was commenced by a complaint filed in the City Court.
Panasuk’s arguments fail for several reasons. First, the argument that the City Court is precluded from hearing cases involving title to or possession of real property is premised on an action to abate the nuisance. The charges levied in the instant case were filed under § 45-8-111(1), MCA, and were criminal charges where the judgment was a fine and a suspended jail term. We do not have a case that involves title to or possession of real property. Furthermore, the sections cited by Panasuk all regard the civil jurisdiction of the City Court. The instant case involves the question of the City Court’s jurisdiction over a criminal matter.
Panasuk’s second argument is premised on belief that § 27-30-202, MCA, provides the “exclusive” remedies for public nuisance. Because the statute provides that an action against public nuisance may be commenced by information or indictment, Panasuk argues that an action for public nuisance may not be filed by complaint and must be filed in District Court.
In construing individual sections of the Code, the Code should be considered in its entirety to determine the effect of any one section. State v. Bush (1974), 164 Mont. 81, 518 P.2d 1406. We note that § 27-30-202, MCA, was enacted and has remained unchanged since 1895. In subsequent years the legislature enacted the above cited statutes regarding a city court’s jurisdiction over misdemeanors as well as § 45-8-111, MCA, the criminal public nuisance statute. Furthermore, in 1967, the legislature enacted a statute that requires all prosecutions brought in City Court be commenced by a sworn complaint. § 46-17-101, MCA.
In the construction of a statute, the office of the judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted. Where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.
§ 1-2-101, MCA. Panasuk’s interpretation of § 27-30-202, MCA, is problematic. Section 27-30-202, MCA, provides for “the remedies against public nuisance”. It does not explicitly provide that the listed remedies are exclusive. Panasuk’s interpretation requires that we insert the word “exclusive” into the statute despite its absence.
Panasuk’s interpretation also results in creating a direct contradiction between § 27-30-202, MCA, and statutes subsequently enacted. Sections 3-11-102 and 3-10-303, MCA, provide the City Court jurisdiction over the instant case while Panasuk’s interpretation of § 27-30-202, MCA, would preclude such jurisdiction. Therefore, we decline to adopt Panasuk’s argument that § 27-30-202, MCA, provides the exclusive remedies for public nuisance and that the City was required to file its action by information or indictment in District Court.
We conclude the City Court has jurisdiction to hear and determine charges for violation of § 45-8-111, MCA. The District Court is affirmed.
JUSTICES HARRISON, HUNT, TRIEWEILER and WEBER concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Appellant Jacinta Mae Jermunson filed a petition for dissolution of marriage against Dennis Carter Jermuson on February 2, 1978, after approximately four years of marriage. On March 6, 1978, she filed an amended petition, and the matter was heard the same day by the Honorable Ronald D. McPhillips. The parties agreed to the entering of a decree of dissolution reserving with the court rulings on the question of property and support for petitioner.
On March 24, 1978, the district judge entered findings of fact, conclusions of law, and a decree. Determination of the property rights were reserved until a later date. The property settlement was decreed by the District Court on July 14, 1978. From these findings of fact, conclusions of law, and decree petitioner appeals.
Two issues are presented on appeal:
1. Did the District Court err in its distribution of marital property?
2. Did the District Court err in failing to provide maintenance for a period sufficient to enable petitioner to obtain appropriate education or training?
The parties were married on February 8, 1974. At the time of the marriage petitioner had not finished high school. She did not attend school during the marriage, although schooling was available to her. She had no marketable skills or vocational training and no outside income other than a job she has held. Petitioner desires to obtain vocational training to become a nurse.
Respondent is a high school graduate and has had training in the military as a diesel mechanic. At the present time he farms some 80 acres of land which was given to him by his father. He is employed by his father as a farmer and is capable of doing outside carpentry, backhoe work and general repair work. The parties had an adjusted gross income in 1977 of $14,601.59.
During their marriage the parties lived in a mobile home located in Brady, Montana. This mobile home was purchased for $8,900 for use as the marital home. Payments were made on the mobile home during the course of the marriage.
During the marriage, the parties paid for a 1972 Thunderbird automobile which had previously been purchased by the husband and his father and also had paid for a 1974 Jeep pickup. They acquired personal property in the course of their marriage and approximately 70 percent of this property was taken by respondent when the marriage failed.
Prior to the marriage, as noted, respondent had acquired 80 acres of land from his father, a 1968 Ford truck, tool box, motorcycle, snow mobile, a Willy’s C-J Jeep, a dishwasher, and a dryer. Petitioner contributed to the assets of the family by her homemaking, aiding her husband’s work at times, and contributing some of her small income to the marriage.
Directing our attention to the first issue, we find no error in the trial court’s distribution of the marital property. Both parties were young when married. Petitioner was not out of high school and did not possess any property other than wedding gifts. Respondent, five years older than petitioner, had acquired some property and had been given property by his father. In four years of marriage, the parties acquired little property other than personal items which were divided by the trial judge at the time of the dissolution. Due to indebtedness on the part of the couple, property was acquired and sold. At the time of the dissolution, the court estimated that the parties were in debt in excess of $20,000. This figure was in error, however, and the total debt amount, according to the transcript, was approximately $11,000. The court required respondent to assume that debt, so petitioner is .left free of any debts that accumulated during the marriage.
Since the adoption of the Uniform Marriage and Divorce Act which became effective in Montana on January 1, 1976, this Court has had numerous cases which control the distribution of marital property according to the Act. See Vivian v. Vivian (1978), 178 Mont. 341, 583 P.2d 1072; In re Marriage of Reilly (1978), 176 Mont. 239, 577 P.2d 840; and In re Marriage of Johnsrud (1977), 175 Mont. 117, 572 P.2d 902.
The trial court did not abuse its discretion and followed the statutes and case law in Montana. We find no merit to this first issue.
As to the second issue, whether or not the trial court abused its discretion in awarding petitioner $ 1,500 at the time of the dissolution, we find no abuse of discretion. The trial court found, and properly so, that the parties had acquired no net worth during the course of the marriage. Petitioner claims she is not receiving her just due from the marriage in the amount of $1,500 and that the amount is insufficient. Petitioner should recognize, however, that under section 36-103, R.C.M.1947, now section 40-2-102 MCA, she has a joint and mutual obligation to pay for the necessities of the marriage. The District Court required respondent to assume all debts, freeing petitioner of these obligations which approximate $5,500 (her one-half of an $11,000 indebtedness).
The District Court considered all the facts and determined neither party at fault. We find no error in the District Court award of $1,500 to petitioner.
In not awarding maintenance to petitioner under section 48-322, R.C.M.1947, now section 40-4-203 MCA, again the trial court is required to balance the needs of the parties. Here the court found that the parties were both capable of working and that no maintenance was required.
This Court in Porter v. Porter (1970), 155 Mont. 451, 457, 473 P.2d 538, 541, held that:
“. . . a reviewing court is never justified in substituting its discretion for that of the trial court. In determining whether the trial court abused its discretion, the question is not whether the reviewing court agrees with the trial court, but, rather, did the trial court in the exercise of its discretion act arbitrarily without the employment of conscientious judgment or exceed the bounds of reason, in view of all the circumstances, ignoring recognized principles resulting in substantial injustice.”
Here the District Court did not act arbitrarily or exceed the bounds of reason. The judgment at the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, SHEA and SHEEHY concur.
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MR. JUSTICE BONNER
delivered the Opinion of the Court.
This is an appeal by the defendant, 'William Neill, in a personal injury action from an order of the district court of Rosebud County, Hon. Alfred B. Coate, district judge, presiding. The order granted plaintiff, Milka Jankovich, a new trial, after the jury returned a verdict for the defendant, on the ground that the giving of an instruction on assumption of risk was an error in law.
The action arose from a car-pedestrian collision in Billings, Montana, in which the plaintiff received severe injuries after being struck by defendant’s pickup truck. In his answer, defendant alleged an affirmative defense that there had been an assumption of risk by the plaintiff. The trial court instructed the jury as to the law of assumption of risk and after the verdict was rendered, granted plaintiff’s motion for a new trial on the ground that such instruction was error in law.
The primary question which this Court must answer is— did the trial court abuse its discretion in allowing a new trial to the plaintiff because of the instruction on assumption of risk having been given? The answer to this question must be in the negative.
Although the facts are somewhat in dispute, it appears that the plaintiff, a 61 year old widow, was either about to cross or was in the process of crossing, a relatively busy four lane thoroughfare at an intersection within a crosswalk. There were no mechanical signals directing traffic other than a pedestrian crossing sign and painted stripes upon the pavement. Several cars had stopped or were stopping to allow plaintiff to cross. The defendant, in his pickup, stopped momentarily behind two other cars in the inside lane, then backed up, pulled into the outside lane and, upon crossing the intersection, struck the plaintiff with a rear view mirror which protruded some 10 inches from the side of the pickup. Witnesses testified that defendant was traveling at an aprpoximate speed of from 20 to 25 miles per hour when the plaintiff was struck.
This Court had occasion to discuss the defense of assumption of risk and the elements thereof as recently as 1968 in the ease of Hanson v. Colgrove, 152 Mont. 161, 447 P.2d 486. In that case we stated:
“This defense requires (1) knowledge, actual or implied, of the particular condition creating the risk, (2) appreciation of this condition as dangerous, (3) a voluntary remaining or continuing in the face of the known dangerous condition, and (4) injury resulting as the usual and probable consequence of the dangerous condition.”
The defendant argues that the plaintiff violated a city ordinance by suddenly leaving the curb and walking into the path of his vehicle which was so close to plaintiff it was impossible for him to yield.
In examining the evidence we find plaintiff testified that while standing at the curb she looked to her left and saw two cars stopped for her. She also looked to the right and saw one car stopped. This was all she remembered. The defendant, testified that while driving in the left hand lane he came upon two cars stopped at the intersection. He stopped momentarily, backed up and proceeded across the intersection in the right hand lane, not seeing the plaintiff until just before the mirror-struck her. He further stated that she was on the curb when she was struck. Other witnesses testified they had seen the-plaintiff and had stopped for her to cross. One witness testified he had motioned for her to cross. Section 21-178 of a Billings municipal ordinance, which is identical to section 32-2177,. R.C.M.1947, provides in part:
“(b) Whenever any vehicle is stopped at a marked crosswalk or at any unmarked crosswalk at an intersection to permit a. pedestrian to cross the roadway, the driver of any other vehicle approaching from the rear shall not overtake and pass snch stopped vehicle.”
This ordinance would govern the conduct of the parties at this intersection. It appears here that- defendant did in fact overtake and pass two vehicles stopped at a marked crosswalk for a pedestrian — the plaintiff.
From the foregoing it can be found there was neither actual nor implied knowledge by the plaintiff of the particular condition creating the risk. Thus the trial court was in error in allowing the instruction on assumption of risk to go to the jury.
The granting of a new trial is statutory in nature and completely within the trial court’s discretion. Rule 59(a), M.R. Civ.P., in pertinent part, states:
“A new trial may be granted to all or any of the parties and on all or part of the issues for any of the reasons provided by the statutes of the state of Montana * * *”.
Section 93-5603, R.C.M.1947, provides in part:
“The former verdict * * * 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: * * *
“ (7) Error in law, occurring at the trial and excepted to by the party making the application; * *
This Court has long held, in considering the trial court’s action regarding motions for a new trial, that the granting of a new trial is within the sound discretion of the trial court. If the new trial is granted, the order thereon will be reversed only for manifest abuse of that discretion. Benner v. B. F. Goodrich Co., 150 Mont. 97, 430 P.2d 648; Estate of Maricich, 145 Mont. 146, 400 P.2d 873; Herren v. Hawks, 139 Mont. 440, 365 P.2d 641.
Defendant contends the trial judge did not exercise “sound discretion” in granting the motion. Even were this true, it is far from a “manifest abuse” of discretion.
We have examined all of the other arguments and claims of the defendant and in onr view none would arise on the new trial and no necessity exists for consideration thereof.
The order of the district court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES HASWELU, JOHN CONWAY HARRISON and CASTLES, concur.
|
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
Plaintiff appeals from a summary judgment against him in the District Court of Madison County.
Plaintiff Ron. S. Nelson filed an action for damages against Twin Bridges High School and School District No. 7 for personal injuries allegedly suffered during a student-faculty basketball game at Twin Bridges High School on April 29. 1974. The game was part of an intra-mural program and plaintiff’s participation was voluntary. Plaintiff claims that during the game he was violently hit from behind, knocked to the floor and suffered extensive and permanent injuries to his right knee.
Plaintiff alleges that he filed a claim for damages with “the proper officials of defendants” on March 3, 1977. No. compensation was paid by defendants. On October 31, 1977, plaintiff filed suit against them in the District Court, seeking damages for his alleged injuries. Defendants’ amended answer alleged the action was barred by the three-year statute of limitations.
The District Court granted summary judgment' to defendants on the ground that plaintiff’s action was barred by the statute of limitations, citing the three-year statute of limitations against personal injury actions, section 93-2605(3), R.C.M.1947, now section 27-2-202 MCA, and the two-year statute of limitations applicable to claims against the state and its political subdivisions, section 82-4312, R.C.M.1947, now section 2-9-301(2) MCA.
The sole issue on appeal is whether plaintiff’s action is barred by the statute of limitations. Whether the two-year or three-year statute of limitations applies is immaterial as plaintiff’s action is either barred or permissible under either statute. Here the action was filed about 3 Vi years after the alleged injury and about 8 months after the alleged presentation of the claim to defendants.
The gist of plaintiff’s contention is that the statute of limitations is no bar because his action was filed within 8 months after presen tation of his claim to the defendants. He cites sections 82-4316 and 82-4317, R.C.M. 1947, (since repealed by Sec. 12, Ch. 360, Laws 1977), providing that an injured party can file a civil suit for damages within two years of filing his claim with the political subdivision, here the High School and the School District. He contends that the statute of limitations begins to run at the time the claim is presented to the School District and High School.
Although this case is relatively simple on its facts, it is complicated by changes in the laws respecting statutes of limitation as applied to personal injury claims against state and local governmental subdivisions. The 1972 Montana Constitution abolished sovereign immunity by providing:
“The state, counties, cities, towns, and all other local governmental entities shall have no immunity from suit for injury to a person or property . . .” 1972 Mont.Const., Art. II, § 18.
Thereafter in 1973, the legislature enacted the Montana Tort Claims Act. Ch. 380, Laws of 1973, codified as section 82-4301 et seq., R.C.M.1947, now section 2-9-101 et seq. MCA. This act required a claim to be filed with the proper governmental unit within 120 days of the injury before suing the state or one of its political subdivisions. Sections 82-4311, 82-4312, R.C.M. 1947, now sections 2-9-301(1), 2-9-301(2) MCA. If the claim was not paid, and injured party could commence a civil suit for damages within two years of the filing of the claim.
Sections 82-4316, 82-4317, R.C.M. 1947, (since repealed by Sec. 12, Ch. 360, Laws 1977).
In 1975, this Court held the 120 day claim requirement unconstitutional where a party sought to impose liability on the state. Noll, v. City of Bozeman (1975), 166 Mont. 504, 534 P.2d 880. By implication, Noll also struck down the claim requirement, applicable to actions against local governments.
The Noll decision was based on our construction of the intent of the framers of the constitution “to preclude limitations upon the waiver of sovereign immunity.” Noll at 508, 534 P.2d at 882. We noted that the power of legislature to enact statutes of limitation governing tort claims against the state had not been affected. Noll at 508, 534 P.2d 880.
. .A true statute of limitation establishes a time period within which suit must be brought. (Citation omitted.) Its object is to suppress stale and fraudulent claims after the facts concerning them have become obscure from lapse of time, defective memory, or death or removal of witnesses. Eby v. City of Lewistown [1918], 55 Mont. 113, 173 P. 1163.” Noll at 509, 534 P.2d at 882.
We held that the 120 day claim requirement did not meet this test and was an unconstitutional limitation of actions. The applicable statute was cited as section 82-4317, R.C.M.1947: “Every claim against a governmental entity permitted under the provisions of this act shall be forever barred unless an action is begun within two (2) years after the claim is filed with the governmental entity.”
Plaintiff argues that Noll struck down the 120 day requirement but did not affect the requirement that a claim be filed. He concludes that because the statute of limitation is made operative on the filing of a claim, an injured party may bring a civil suit for damages against a governmental entity any time within two years of filing. Thus, plaintiff argues, he is clearly within section 82-4317 as the suit was commenced within 8 months of the filing of the claim with defendants.
If plaintiff’s interpretation is correct, the result would effectively nullify the purpose of any statute of limitations. There would be no limitation on when the claim could be filed. The state or a political subdivision could be sued at any time in the future at the option of the plaintiff, simply by delaying presentation of a claim against the state or one of its political subdivisions.
Noll strikes down the same requirement as a condition precendent or a limitation on an injured party’s right to sue a governmental entity. Until the legislature, by a two-thirds vote of each house provides such a requirement, it is no part of Montana’s law. 1972 Montana Constitution, Art. II, § 18, amended effective July 1, 1975. The statute of limitation begins to run from the date the cause of action accrues, Cassidy v. Finley (1977), 173 Mont. 475, 568 P.2d 142, not from the date the claim is filed.
We note that the statute of limitations on actions against governmental units has since been amended to provide for a three-year statute of limitations. Sec. 7, Ch. 360, Laws 1977, codified as section 82-4312.1, R.C.M.1947, now section 2-9-302 MCA. The statute of limitations on personal injury actions remains at three years. Section 93-2605(3), R.C.M.1947, now section 27-2-202(3) MCA. This should eliminate such problems in the future.
Affirmed.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
William Jay Allen (Allen) appeals from a jury verdict in the Twentieth Judicial District Court, Lake County, convicting him of robbery. We affirm.
The following issue is raised on appeal:
Did the District Court abuse its discretion in restricting the cross-examination of a witness on an issue that related to her credibility?
On the evening of July 9,1994, Allen went to the apartment of Tana Bockman (Bockman) in Ronan, Montana, to demand money which he alleged Bockman owed to him. Allen and his then-girlfriend, Marcie Mestith (Mestith), now married to Allen, had stayed at Bockman’s apartment in late May of 1994. While they were staying at the apartment, Bockman borrowed money from both Mestith and Allen. Bockman contended that she did not owe money to Mestith or Allen, rather, that the debt was offset as compensation for the couple’s use of her apartment and for the time she spent babysitting for them.
When Allen arrived at the apartment on the night of July 9,1994, an argument over the alleged debt ensued. During the argument, the telephone rang and Bockman awakened her teenage daughter Kenclena for the call. While Kenclena was speaking on the telephone, Bockman told Kenclena to call the police. Allen, who had earlier removed a gun from the waistband of his pants, began waving it around the room, pointed the gun at Kenclena directing her not to call the police and demanded anything of value in the apartment. He decided to take the television set as payment for the debt. Bockman helped Allen unplug and remove the television. A neighbor, Jerry Beck, testified that he saw Allen leave the apartment carrying a television and that he observed a gun stuck in the belt of Allen’s pants. Allen testified that he did not threaten Bockman and denied having a gun. At trial, several witnesses testified on Allen’s behalf that Bockman had a poor reputation in the community for veracity. In addition, Allen called witnesses who testified that Allen did not have a gun with him earlier in the day or when he returned from Bockman’s apartment that night. The jury returned a verdict of guilty on the charge of robbery. Allen appeals.
Did the District Court abuse its discretion in restricting the cross-examination of a witness on an issue that related to her credibility?
Allen asserts that the District Court abused its discretion in sustaining the State’s objection to Allen’s attempted cross-examination of Bockman on questions relating to her mental health. On appeal, Allen argues that this error was of constitutional magnitude and warrants a new trial. Citing Davis v. Alaska (1974), 415 U.S. 308, 315, 94 S.Ct. 1105, 1109-10, 39 L.Ed.2d 347, 353, Allen asserts that he was denied his Sixth Amendment right to be “confronted with the witnesses against him” and to cross-examine witnesses. Allen argues that he should have had the opportunity to impeach or discredit Bockman. See, e.g., State v. Dahms (1992), 252 Mont. 1, 7, 825 P.2d 1214, 1218. Further, relying on State v. Gommenginger (1990), 242 Mont. 265, 274, 790 P.2d 455, 461, that he should have been afforded wide latitude in cross-examination of the prosecution witness. Allen argues that the mental health or stability of a witness is an appropriate subject for cross-examination in a criminal trial and that foreclosing Allen’s opportunity to cross-examine Bockman prejudiced him and denied him his Sixth Amendment right of confrontation and cross-examination.
The State counters that Allen did not make a proper offer of proof as to what evidence he would have presented through his cross-examination of Bockman. Accordingly, the State asserts, this Court has no basis for review. Rule 103(a)(2), M.R.Evid.; State v. Hall (1979), 183 Mont. 511, 515, 600 P.2d 1180, 1183. The State points out that Bockman’s mental health records were privileged under § 26-1-807, MCA. Further, that the records were not in the State’s possession and that the State did not have the right to obtain such records. State v. Fina (1995), 273 Mont. 171, _, 902 P.2d 30, 36; State v. Reynolds (1990), 243 Mont. 1, 8, 792 P.2d 1111, 1115.
Allen asserts that at the pre-trial hearing the State was “willing to grant that the defendant may likely prove that this witness [Bockman] isn’t competent mentally.” Allen argues that, having conceded this at the hearing, the State may not change its theory on appeal. State v. Henderson (1995), 265 Mont. 454, 458-59, 877 P.2d 1013, 1016. Allen asserts that the District Court was aware of the substance of the information relating to Bockman’s mental instability and that an offer of proof was unnecessary. Further, that an offer of proof was not required because counsel made the substance of the evidence apparent from the context in which the questions were asked. In re Marriage of Johansen (1993), 261 Mont. 451, 456, 863 P.2d 407, 411.
Regardless of whether or not Allen’s cross-examination of Bock-man was unduly restricted or whether an offer of proof was required, independent corroborating evidence supports the conviction. Two witnesses other than Bockman testified that Allen possessed a firearm while in or leaving Bockman’s apartment and that he took the television. Kenclena testified at length regarding the events that occurred on the night of July 9, 1994. The following colloquy illustrates her recollection of the incident:
Q. [Deputy County Attorney Long] ....When he pulled the gun out, was he standing?
A. [Kenclena] Yes.
....
Q. Did you get a good long look at the gun?
A. Yeah.
Q. What did it look like?
A. I think it had [a] brown handle and it was silver and it was long.
Q. Were you surprised to see that gun?
A. Yeah.
Q. Were you literally staring down the barrel of the gun?
A. Yes, I was.
Therefore, Bockman’s alleged mental incompetence or alleged psychiatric problems were not dispositive on the question of whether Allen took the television while brandishing a weapon. Here, the jury heard evidence from Kenclena that Allen flourished a firearm in the apartment and that she was scared and upset by the incident. Thus, Bockman’s testimony was not the only evidence establishing that Allen took the television under threat of a weapon in violation of § 45-5-401(1)(b), MCA. In addition, Jerry Beck testified that he saw Allen carrying the television out of the apartment and saw “the butt of the gun sticking out of his belt where his jacket was pushed away from it."
This Court has held that prejudice is not assumed when error is alleged. State v. Kutnyak (1984), 211 Mont. 155, 165, 685 P.2d 901, 906. If error occurred, then prejudice must be demonstrated. Error will not be presumed nor will a criminal case be reversed for errors or defects appearing in the record which do not affect the substantial rights of the defendant. Section 46-20-701(2), MCA; See also State v. Boe (1963), 143 Mont. 141, 149, 388 P.2d 372, 377.
Here, even assuming that the District Court should have allowed Allen to further examine Bockman as to her mental health, we determine that Allen has not made the requisite showing of prejudice. Other evidence, namely, the testimony of Kenclena and Beck, supports the verdict. Since Bockman’s testimony was cumulative, any alleged error in restricting cross-examination would not be grounds for reversal. Section 46-20-701(2), MCA; Kutnyak, 685 P.2d at 906; Boe, 388 P.2d at 377. Allen’s substantial rights were not prejudiced by the District Court’s limitation of his cross-examination of Bockman.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES NELSON, ERDMANN, GRAY, HUNT and TRIEWEILER concur.
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ORDER
Relator seeks a writ of supervisory control directed to the district court of the eleventh judicial district, the Hon. Robert C. Sykes, presiding. The writ sought is to compel the correction of election procedures concerning candidates for Local Government Study Commission in Flathead County.
Relator is a candidate for the Study Commission in District No. One. She filed her petition prior to August 1, 1974, as required by M.R.C. 16-5107. District No. One includes Whitefish and Columbia Falls. Prior to August 1, only one other candidate for District No. One, that candidate being a resident of Columbia Falls, as is relator, filed.
One Arnold Jacobsen, a resident of Whitefish, prior to August 1 filed as a candidate as an “at large” candidate. On or about August 8, 1974, eight days after the last day for filing, Jacob-sen was allowed to change his nomination from “at large” to “District #1”, resulting in 3 candidates for one District .# 1 position.
Immediately, relator protested the change. Not until September 24 was her protest denied by the county attorney. On September 25, relator petitioned the district court for a writ of mandate to compel the printing of ballots with the name of Jacobsen to be shown as an “at large” candidate rather than a “District #1” candidate. Not until October 11 was the petition heard; and on that day Judge Sykes held a hearing and made a transcript. The judge denied relief.
Mr. Jacobsen was not served or present. His absence from the state prevented service on him.
The county attorney’s office was present and represented the clerk and recorder of Flathead County. The county attorney moved to quash, and among other reasons, gave one that the mandamus procedure was not proper but rather that the proper procedure was under section 23-3316, R.C.M. 1947, a procedure for contesting nominations. That section contemplates notice to the person whose nomination is being contested.
We are told, as was the district judge, that Jacobsen has been out of the state and could not be served. It seems fair from reading the exhibits and transcript that the judge was con cerned about the absence of Jacobsen, but tried to settle the situation — not along the lines of technical rules of procedure as it concerns legal remedies but rather on the merits. We consider this application for supervisory control in the same light and consider the district court proceedings as a contest of nomination.
The law seems clear that after the deadline for filing, a candidate cannot change his filing to a new office. At that point it becomes nothing more than a late filing and is invalid. We note here that relator moved quickly and timely to protest and contest the matter but through no fault of hers the wheels of bureaucracy and judicial process, and the absence of candidate Jacobsen, caused delay until after the printing of ballots. Now, however, she again moves to correct the matter before the election rather than wait until the election itself would have to be challenged as invalid and void.
This Court is aware of the exigencies of the situation, but under its responsibilities and duties must act to assure orderly election procedures.
Accordingly, this Court orders the district court to forthwith hold a hearing in the contest of the nomination of Jacobsen as a candidate of District #1 and to cite Jacobsen into court for such hearing, and thereafter to order the election officials to correct the ballots to properly reflect the status of the candidates on August 1, 1974. This is not to say that mere technicalities, misspellings, etc., may not be corrected by election officials but that substantive changes of errors cannot be done in the manner indicated by the record herein. Copies of this order together with the supporting papers shall be served by counsel for relator on Judge Sykes, County Clerk and Recorder Taborsky, County Attorney Oleson and on Arnold Jacobsen.
This order, being issued ex parte, but on the basis of the complete record below, shall constitute an order for supervisory control. However, the parties named above for service of this order, are not foreclosed from petitioning this Court further in the matter, if done without delay.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES JOHN C. HARRISON, CASTLES and DALY concur.
|
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On July 6,1992, the Defendant was sentenced to Count I, eight (8) years for Deviate Sexual Conduct; Count II, eight (8) years for Deviate Sexual Conduct; the sentences shall be served consecutively to each other. The Defendant shall receive credit for time served while on probation from January 4,1988 to January 22,1991. The Defendant shall not receive credit for time on probation from February 1,1991 to the present date. The Defendant shall receive additional credit of twenty (20) days time served by reason of prior incarceration. The Defendant shall not be eligible for parole until he has enrolled, actively participated in, and successfully completed all phases of a sex offender program while confined at the State Prison of Montana. The Defendant shall carefully follow all treatment plans recommended by counselors, whether Defendant is incarcerated at the State Prison or on parole. The Defendant shall be placed under the jurisdiction of the Department of Corrections and Human Services, Division of Adult Parole and Probation of the State of Montana, and follow all other conditions imposed in the July 6, 1992 Judgment.
DATED this 11th day of March, 1993.
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 proceeded pro se. 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 did not wish to proceed, but wanted his case dismissed.
The Petition is dismissed without prejudice at this time. Upon showing of good cause, the Petitioner can reapply for Sentence Review at a later date.
Hon. Thomas McKittrick, Chairman, Hon. John Warner, and Hon. James Purcell, Judges
|
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Plaintiff, John J. Miller, brought this action in the District Court of the Second Judicial District, Silver Bow County seeking specific performance of a contract between Miller and defendant Gary L. York. In the alternative he sought damages. Trial began on June 20, 1977, before the Honorable James D. Freebourn, sitting without a jury, and resulted in a judgment for defendants. Plaintiff appeals.
On April 21, 1976, the Anaconda Company contracted with Cascade Northern Company for the demolition of the old Domestic Manganese Plant in Butte, Montana. On May 28, 1976, Cascade Northern contracted with Gary L. York whereby Cascade Northern agreed to pay for blasting the stack and the brick foundations. York, as subcontractor, agreed to furnish all supervision, labor and materials, and perform work on the demolition for the right to receive one half the net salvage value of any reclaimed material. York was authorized to sell certain salvageable materials and required to keep a daily record of such transactions.
York began work on the contract on or about June 1, 1976, but progressed very slowly because of the lack of proper equipment. On June 23, Larry Ladum of Cascade Northern traveled to Butte from Seattle to end the contract and advise York that he was to make no further sales of any salvageable materials. For York’s agreement to surrender any rights he may have had under the original contract, Landum agreed to pay him 5 percent of the net proceeds received by Cascade Northern from the sale of salvageable materials by York’s successor, Ron Holman. Testimony adduced at trial indicates York understood that his authority to sell materials had been terminated at the June 23 meeting.
Nevertheless, York continued to visit the job site after Ladum’s return to Seattle. On July 3, York met with plaintiff Miller in the lounge of the Ramada Inn in Butte. They signed a purported contract for the sale of the trestle, sheds, and other salvageable materials from the plant site. The materials were to be delivered to Miller’s residence in Jefferson County. Miller paid York $500 and, approximately one week later, York delivered some siding to Miller’s property.
On July 14, 1976, Ladum returned to Butte to pay York $2500 as an advance on the June 23 agreement. The two parties signed an agreement to cancel all sales that York had made in violation of this agreement. In spite of this, York contacted Miller again and, after receiving another $500 from him, delivered some more material to his residence. Testimony indicated that the total value of the materials received by Miller exceeded the $1000 he paid for them. It also appears that the materials actually delivered to Miller were not the materials subject of the original contract between York and Cascade Northern.
The determinative question in this appeal is whether any type of agency relationship existed between York and Cascade Northern at the time. York signed the agreement with Miller such that Miller can enforce the agreement against Cascade Northern. We find that no such relationship existed.
According to statute, “[a]n agency is either actual or ostensible.” Section 2-104, R.CM.1947, now section 28-10-103 MCA. “An agency is actual when the agent is really employed by the principal.” Section 2-105, R.C.M.1947, now section 28-10-103 MCA. In the instant case, York was, at all times, acting as an independent contractor pursuant to the express terms of his contract with Cascade Northern. No actual agency existed at any time.
The question then becomes whether an “ostensible agency” existed between York and Cascade Northern. “An agency is ostensi ble when the principal intentionally, or by want of ordinary care, causes a third person to believe another to be his agent who is not really employed by him.” Section 2-106, R.C.M.1947, now section 28-10-103 MCA. “[T]o create liability on the theory of ostensible agency the party sought to be held as principal must by reason of some act on his part have led the other party to believe that an agency existed even though no agency actually existed.” Elkins v. Husky Oil (1969), 153 Mont. 159, 168, 455 P.2d 329, 333.
In this case, we find no act or conduct on the part of Cascade Northern holding York out as its agent. Without this, there can be no ostensible agency between York and Cascade Northern.
The judgment of the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, SHEA and SHEEHY concur.
|
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MR. JUSTICE DALY
delivered the opinion of the Court.
This is an appeal from the order of the District Court, First Judicial District, granting in part defendant superintendent’s motion for summary judgment.
Plaintiffs/appellants are six former employees of the Office of the Superintendent of Public Instruction (OSPI). After election to the office of superintendent, defendant requested a letter of resignation from all members of the OSPI professional staff. She indicated that, upon receipt of these letters, she would meet with each of the members individually to “evaluate” their position on the staff. In their complaint, plaintiffs alleged that they were each dismissed without cause following the presentation of their requested resignations. They further alleged that they requested from defendant reasons for their dismissal, but that their request was refused.
Defendant’s predecessor in office adopted an Affirmative Action program for the OSPI on March 26, 1976. That program included a plan for termination of employment procedures in section 904:
“Section 904 Termination
“Goal:
Terminations will be made for job related reasons only.
“Action Items
“ 1. Termination for cause will be made only after at least one evaluation session has been held to discuss the problem, remedial action has been requested, and reasonable time has been allowed for improvement unless the person’s presence is a direct threat to the safety and continuation of the agency’s function.
“2. The EEO coordinator or a designee will conduct exit interviews and will provide documentation to the Personnel Service Manager who will keep a running log of the employees’ reasons for termination. If there is any suggestion that discrimination is involved, the EEO coordinator or a designee will be asked to participate in the interviews. Apparent discriminatory actions will be investigated and corrected.”
Plaintiffs alleged in their first claim for relief that section 904 constituted a contractual term of their employment and that defendant failed to live up to that contract in several particulars. Second, they alleged a tort, in that defendant acted maliciously toward them by disregarding the termination for cause plan. Third, plaintiffs alleged the tort of “outrage,” in that defendant’s willful disregard of section 904 caused them emotional distress. A fourth claim, a claim for lost wages, was dismissed by the District Court as being redundant.
Plaintiffs’ fifth claim alleged a violation of section 64-317(1), R.C.M.1947, now section 49-3-201 MCA, in that defendant failed to make a merit-based evaluation of the OSPI personnel before dismissing them. The sixth claim alleges that the dismissals were motivated by political favoritism, and were therefore arbitrary and capricious, and violated plaintiffs’ state and federal constitutional rights. Plaintiffs’ seventh claim alleged a violation of section 41-1311, R.C.M..1947, now section 39-2-801 MCA, in that defendant failed to provide a “full, succinct, and complete statement of the reason of [their] discharge” when requested to do so. In their prayer for judgment, plaintiffs sought, inter alia, attorney fees under provisions of 42 U.S.C. § 1988 (1976).
Defendant superintendent moved for summary judgment on plaintiffs’ first, second, third and fifth claims. The District Court, in an order dated April 27, 1978, granted summary judgment to defendant on the first, second and third claims, set the fifth, sixth, and seventh claims for trial and denied plaintiffs’ claim for attorney fees under 42 U.S.C. § 1988. The District Court’s reason for granting summary judgment as to the first three claims was that those claims were all based upon section 904 of the OSPI Affirmative Action plan and that the superintendent lacked statutory authority to adopt such a plan. It denied plaintiffs’ claim for attorney fees under 42 U.S.C. § 1988 on the rationale that the attorney fees provision of that section is intended to apply only to federal courts and that absent a statute, stipulation by parties, or rule of court, attorney fees are not recoverable by the prevailing party.
Plaintiffs raise several specifications of error on the merits of the District Court’s ruling but because we have determined that the order granting summary judgment as to some, but not all of their claims, is interlocutory and not appealable, we will not discuss those issues.
Plaintiffs presented seven separate claims for relief, three of which remain to be adjudicated at trial. This situation is not expressly contemplated in Rule 56, M.R.Civ.P. Rule 54(b) provides that a District Court may grant a final, appealable judgment as to some but not all of the claims involved in an action only if it makes an express determination that there is no just reason to delay an appeal on those claims and expressly directs entry of judgment:
“When multiple claims for relief or multiple parties are involved in an action, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. . . .” (Emphasis added.)
Rule 54(b) goes on to provide that if the District Court fails to make the required “determination” and “direction,” any order which adjudicates less than all of the claims does “not terminate the action as to any of the claims” and the order remains “subject to revision” until the final entry of judgment adjudicating all the claims. (Emphasis added.) Thus, when Rule 54(b) is construed together with Rule 56(c), the result is that a District Court may enter a final appealable summary judgment if it rules on one or more but not all of a party’s claims and makes the requisite “determination” and “direction” in its order. As Professor Moore comments on the identical Federal Rules:
“. . . Neither Rule 56 nor any other Rule authorizes the trial court to translate an interlocutory adjudication of a part of a single claim into a final judgment. If, however, in an action involving multiple claims or parties, the trial court fully adjudicates one or more but fewer than all the claims, it can make that adjudication final by making the ‘express determination’ and the ‘express direction’ called for by Rule 54(b). Failing to do that the adjudication remains interlocutory.” 6 Moore’s Federal Practice ¶ 56.-20[l] at 56-1204.
See also, In re Marriage of Adams (1979), ... Mont. . . ., ... P.2d . . ., 36 St.Rep. 565, 566; State ex rel. Marlenee v. District Court (1979), 181 Mont. 59, 592 P.2d 153; 6 Moore’s Federal Practice ¶56.21[1.-2] at 56-1271 to 1272; cf. Krusemark v. Hanson (1979), 182 Mont. 291, 597 P.2d 48 (involving multiple parties).
The “determination” and “direction” requirements of Rule 54(b) are intended to permit the District Court, in the first instance, to consider whether the judgment upon some, but not all, of a litigant’s claims can properly be appealed. As described by the United States Supreme Court, the district court, in effect, “is used as a ‘dispatcher’.” “It is permitted to determine, in the first instance, the appropriate time when each ‘final decision’ upon ‘one or more but less than all’ of the claims in a multiple claims action is ready for appeal.” Sears, Roebuck & Co. v. Mackey (1956), 351 U.S. 427, 435, 76 S.Ct. 895, 899, 100 L.Ed. 1297. In this way the District Court not only assists this Court by preventing “piecemeal appellate disposition” of what is more properly considered a single controversy, see, Eisen v. Carlisle & Jacquelin (1974), 417 U.S. 156, 170, 94 S.Ct. 2140, 2149, 40 L.Ed.2d 732, 744, quoted in Ryan v. Occidental Petroleum (5th Cir. 1978), 577 F.2d 298, 301, but also permits the District Court to determine whether special circumstances require an immediate appeal:
“The inquiry requires some evaluation of the competing considerations underlying all questions of finality — “the inconvenience and costs of piecemeal review on the one hand and the danger of denying justice by delay on the other.” Dickinson v. Petroleum Conversion Corp., 338 U.S. 507, 511 (1950).’” Occidental Petroleum, 577 F.2d at 301, quoting Eisen v. Carlisle & Jacquelin, 417 U.S. at 171, 40 L.Ed.2d at 745, 94 S.Ct. at 2149.
In light of the “competing consideration,” the reviewing court may, under limited circumstances, consider the appeal despite the lack of the express “determination” and “direction” required by Rule 54(b). Riggle v. State of California (9th Cir. 1978), 577 F.2d 579, 581 n. A; Huckeby v. Frozen Food Express (5th Cir. 1977), 555 F.2d 542, 546-47. In Huckeby, the Court of Appeals listed three circumstances which would permit an appellant to proceed in the absence of a Rule 45(b) determination and direction, none of which are applicable to our case here.
Plaintiffs argue that an alternative disposition is available, that this Court may issue a writ of supervisory control to the District Court reinstating their first three claims. However, such a writ would not surely terminate “needless litigation” as was the case in State ex rel. Buttrey Foods v. District Court (1966), 148 Mont. 350, 354, 420 P.2d 845, 847, and we decline to issue a writ.
The summary judgments appealed from are interlocutory and not appealable. The appeal is dismissed without prejudice.
MR. CHIEF JUSTICE HASWELL, and JUSTICES HARRISON, SHEA and SHEEHY concur.
|
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JUSTICE HARRISON
delivered the Opinion of the Court.
Claimant, Chester Scribner (Scribner), appeals from a judgment of the Workers’ Compensation Court issued on September 16, 1991, which ruled in favor of the insurer (Aetna). The order entitled Aetna to recoup lump sum advances and social security overpayment by reducing Scribner’s weekly workers’ compensation benefits. Further, Scribner was not entitled to an additional lump sum advance. We affirm.
On May 16,1979, Scribner suffered an injury arising out of and in the course of his employment. Scribner was injured when the 650 pound wheelbarrow he was pushing tipped over, resulting in torn muscles in his lower back. At the time of Scribner’s injury, his employer was insured under Plan II of the Workers’ Compensation Act. Aetna accepted liability for Scribner’s injury. In addition to paying medical, temporary total, and permanent total disability benefits, Aetna advanced Scribner three lump sum payments.
On April 2, 1984, the Social Security Administration determined that Scribner was eligible for social security disability benefits as of May 17, 1979. Therefore, on April 2, 1984, Aetna decreased Scribner’s workers’ compensation benefits to the social security offset rate provided for in § 39-71-702(2), MCA (1978). Aetna also determined that, prior to April 2,1984, it overpaid Scribner approximately $7,702 due to the social security offset.
Additionally, with court approval, Aetna advanced Scribner three lump sum payments from June 6, 1980, through June 2, 1982, totalling approximately $17,779.
Aetna petitioned the Workers’ Compensation Court for an order allowing Aetna to reduce Scribner’s benefits to recoup overpayment and lump sum advances previously made to him. Scribner cross-petitioned requesting an additional lump sum payment for debt management. Subsequently, the parties commenced settlement negotiations which resulted in a tentative settlement. When Scribner refused to sign the settlement agreement, Aetna moved the court to enforce the settlement agreement. On June 20,1991, Hearings Examiner, David J. Patterson, heard Aetna’s motion to enforce the settlement agreement as well as all other matters raised by the parties.
The hearings examiner issued proposed findings of fact and conclusions of law on September 12, 1991, denying Aetna’s motion to enforce the settlement agreement and Scribner’s request for an additional lump sum advance. The hearings examiner determined that Aetna could reduce Scribner’s weekly benefits to recoup the amount Aetna overpaid Scribner. The Workers’ Compensation Court adopted the hearings examiner’s proposed findings and conclusions on September 16, 1991, from which Scribner appeals.
Scribner presents the following issues for our review:
1. Did the Workers’ Compensation Court err in allowing Aetna to recoup social security overpayment and lump stun advances from Scribner by reducing his weekly workers’ compensation benefits?
2. Did the Workers’ Compensation Court err in denying Scribner’s request for an additional lump sum advance to implement a debt management plan?
I.
From the time of his injury until April 2, 1984, Scribner received full workers’ compensation benefits and social security disability benefits. Section 39-71-702(2), MCA (1978), allows an offset against workers’ compensation benefits when the injured worker receives social security disability benefits. Belton v. Carlson Transport (1986), 220 Mont. 194, 196, 714 P.2d 148, 149. Aetna did not take the offset until April 2, 1984, at which time it reduced Scribner’s compensation to the offset rate. Aetna determined that it overpaid Scribner approximately $7,702. Scribner does not dispute the amount or Aetna’s entitlement to recoup the social security overpayment; Scribner’s argument focuses on the manner in which Aetna proposed, and the Workers’ Compensation Court adopted, to realize the recoupment.
In addition to recoupment of the overpayment due to the social security offset, the Workers’ Compensation Court concluded that Aetna is entitled to recoup the lump sum advances previously made to Scribner, totalling approximately $17,779. Scribner contends that Aetna is only entitled to recoupment of the lump sum advances when a final settlement is reached between the parties. We disagree.
A claimant is not entitled to double recovery of both a lump sum advance and the biweekly payments. Since a lump sum advance is merely the whole or partial conversion of a claimant’s biweekly payments, the insurer is entitled to recover the advance.
Hedegaard v. Knife River Coal Mining Co. (1989), 238 Mont. 290, 293, 776 P.2d 1225, 1227.
The appropriate standard of review for reviewing conclusions of law by the Workers’ Compensation Court is to determine whether the lower court’s interpretation of the law is correct. Raffety v. Kanta Prod., Inc. (Mont. 1991), [250 Mont. 268,] 819 P.2d 1272, 1273, 48 St.Rep. 926. In the case at bar, the parties essentially agree on the facts. They disagree as to the Workers’ Compensation Court’s determination of what the law requires for an insurer to recoup overpayment. Here, case law indicates that insurers are entitled to recover lump sum advances. Since the Workers’ Compensation Court interpreted the law correctly, it did not err in concluding that Aetna was entitled to recoupment of the social security overpayment and the lump sum advances.
II.
Scribner maintains that if this Court finds that Aetna was entitled to recover the overpayment, the Workers’ Compensation Court erred in allowing Aetna to reduce Scribner’s weekly benefits because with the reduction, Scribner’s expenses exceed his income. Scribner contends that he is entitled to an additional lump sum advance to implement his proposed debt management plan before the court can reduce his weekly benefits.
Scribner sought a lump sum advance of $88,000 to reimburse Aetna for its prior overpayment and to pay off Scribner’s home mortgage, automobile expenses, and miscellaneous debts. Paying these debts in full would leave Scribner with monthly income in excess of his monthly expenses even with an offset to his weekly benefits.
On May 16, 1979, the date of Scribner’s injury, the statute controlling lump sum advances stated in part:
The biweekly payments provided for in this chapter may be converted, in whole or in part, into a lump-sum payment. Such conversion can only be made upon the written application of the injured worker or the worker’s beneficiary and shall rest in the discretion of the division, both as to the amount of such lump-sum payment and the advisability of such conversion. The division is hereby vested with full power, authority, and juris-diction to compromise claims and to approve compromises of claims under this chapter. All settlements and compromises of compensation provided in this chapter are void without the approval of the division ....
Section 39-71-741, MCA (1978). Lump sum settlements are granted in situations in which outstanding indebtedness exists, a pressing need is shown, or the best interests of the claimant, his family and the general public will be served. Willoughby v. Arthur G. McKee & Co. (1980), 187 Mont. 253, 257, 609 P.2d 700, 702.
Generally, the best interests of the claimant are served by compensating the claimant in regular periodic installments; lump sum conversions of periodic benefits are the exception rather than the rule. Phelps v. Hillhaven Corp. (1988), 231 Mont. 245, 252, 752 P.2d 737, 741-42 (citation omitted). However, if the best interests of the parties will be served by lump sum conversions, the Workers’ Compensation Court should award them without hesitation. Crittendon v. Terri’s Restaurant & Lounge (1991), 247 Mont. 293, 295, 806 P.2d 534, 536.
Scribner possessed the burden of proving that a lump sum conversion was in his best interest. Phelps, 231 Mont. at 252, 752 P.2d at 742. He failed to meet this burden. An additional lump sum would benefit Scribner by reducing his monthly expenses at the present time. However, the fact that Scribner’s debts exceed his income does not require conversion of Scribner’s weekly benefits into a lump sum settlement. Ruple v. Bob Peterson Logging Co. (1984), 209 Mont. 276, 281, 679 P.2d 1252, 1254.
The Workers’ Compensation Court is the proper forum for determining how an insurer can recover overpayment. In this case, the court denied Scribner’s lump sum request because Scribner’s tax-free yearly income does not justify such a result. Further the court found that a reduction in Scribner’s weekly benefits (by $25 per week until the overpayment are repaid) is fair and reasonable. The court’s findings of fact are undisputed and the court made correct conclusions of law. Therefore, we will not disturb its ruling.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY and WEBER concur.
Claimant received social security disability benefits from November 1, 1979, through November 1, 1982, while he was receiving full workers’ compensation permanent total disability benefits. Thereafter, he started receiving social security disability benefits on June 1,1983, continuing to present until he reaches age 65, at which time he will receive social security retirement benefits for which no offset exists in the Workers’ Compensation Act.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment in favor of the defendants dismissing the action by plaintiff entered by the district court of the fourth judicial district in an action brought to test the constitutionality of R.C.M.1947, §§ 69-801 to 69-814, which sections generally provide for the creation and management of health districts.
This case was submitted to the district court on an agreed statement of facts. The plaintiff is a resident and taxpayer of the State of Montana and Lake County. He is a member of the Lake County Taxpayers’ Organization and brings this action in his own behalf and also on behalf of the Taxpayers’ Organization and all other taxpayers who may be similarly interested. The defendant, Lake County, is a quasi-municipal corporation, and political subdivision of the State of Montana. The other defendants who have been joined in this action are Harold Guinn, Ralph Maxwell, and H. M. Hendrickson who were, at the time of the creation of Public Health District No. II, the duly elected and qualified county commissioners of Lake County. Briefly stated, Lake County in the year 1953, by its county commissioners, duly and regularly, pursuant to the provisions of R.C.M.1947, §§ 69-801 to 69-814, joined with Sanders County in the creation of Public Health District No. II, and thereafter imposed and levied a tax upon all taxable property within Lake County for the purpose of appropriating funds with which to maintain and operate said Lake County’s share of expense incurred in the operation of Public Health District No. II. These tax moneys were levied as a portion of and appropriated from the general fund of Lake County, Montana. The Board of County Commissioners of Lake County has for every fiscal year subsequent to April 23, 1953, so levied and appropriated tax funds for the operation of Public Health District No. II, and has levied and appropriated such tax funds for the fiscal year July 1, 1959, to July 30, 1960.
Plaintiff will hereinafter be referred to as appellant. The appellant’s specifications of error resolve themselves into three main questions for our consideration on this appeal. These questions wll be considered separately.
The first question is whether sections 69-801 to 69-814 allow the creation of a quasi-political subdivision of the State of Montana, comprising two counties, without control of the county commissioners of one or either of the counties, without the vote or approval of the taxpayers of either or both of the counties, in violation of the Montana Constitution, Art. XVI, §§ 1 and 8.
R.C.M.1947, § 69-805, provides, in essence, for the creation of health districts which may be composed of two counties or more, including municipalities, and in order to finance the same the counties and municipalities may pool their resources. There is no provision for a vote of the electors to ereate such health districts.
R.C.M.1947, § 69-806, provides for the creation of a board for the administration of these health districts. Appellant contends that these statutory provisions violate the Montana Constitution, Art. XVI, §§ 1 and 8.
The Montana Constitution. Art. XVI, § 1, provides:
“The several counties of the territory of Montana, as they shall exist at the time of the admission of the state into the Union, are hereby declared to be the counties of the state until otherwise established or changed by law.”
The Montana Constitution, Art. XVI, § 8, provides:
“Any county or counties in existence on the first day of January, 1935, under the laws of the state of Montana or which may thereafter be created or established thereunder shall not be abandoned, abolished and/or consolidated either in whole or in part or at all with any other county or counties except by a majority vote of the duly qualified electors in each comity proposed to be abandoned, abolished and/or consolidated with any other county or counties expressed at a general or special election held under the laws of said state.”
Appellant contends that these constitutional provisions are violated by combining the governmental functions of one county with another county in the creation of a health district comprising both of the counties, without a vote of the electors of both of the counties. Appellant further contends that this is the creation of a quasi-political subdivision of the state which is not authorized by the Montana Constitution.
This argument is without merit. A county or dis trict board of health cannot be classified or termed a political subdivision of the state. At most it could only be defined as a department of the state or as an agency of the executive branch of the state government. This provision for health districts embracing more than one county does not allow the creation of new political subdivisions of the State of Montana, but is only a provision providing for an effective method of cooperation among the counties of Montana with respect to health problems. However, the counties themselves are still the political subdivisions of the State of Montana which have entered into this cooperative measure.
The second question is whether sections 69-801 to 69-814, supra, violate the Montana Constitution, Art. Ill, § 27, or the United States Constitution, amend. XIV, § 1, in that there is a taking of property without due process of law. It should here be noted, as stipulated by counsel for both the plaintiff and the defendant, that nowhere in sections 69-801 to 69-814 is there a requirement or authorization for notice of the creation or intention to create the health districts or for notice of the assessment of tax for the operation of said districts.
The Montana Constitution, Art. Ill, § 27, provides:
"No person shall be deprived of life, liberty, or property without due process of law.”
The United States Constitution, amend. XIV, § 1, provides, in part:
"* * * nor shall any state deprive any person of life, liberty, or property, without due process of law.”
Appellant contends that the statute in question violates these provisions of the State and Federal Constitutions citing as authority Great Northern Ry. Co. v. Roosevelt County, 134 Mont. 355, 332 P.2d 501.
The Great Northern case, supra, had under consideration R.C.M.1947, § 11-2008, relating to the creation of fire districts wherein it was provided that "At the time of the annual levy of taxes the board of county commissioners may levy a special tax upon all property within such districts for the purpose of buying and maintaining fire protection facilities and apparatus for such districts, or for the purpose of paying to a city or town the consideration provided for in any contract with the council of such city or town for the extension of fire protection service to property within such district, and such tax must be collected as are other taxes.” Emphasis supplied.
The case held that this provision was unconstitutional since it granted the county commissioners the power to levy a special tax without notice to the taxpayers and thus deprived the taxpayers of their property without due process of law in violation of both the State and Federal Constitutions.
The statute which has been subjected to a similar constitutional attack in the case at bar is section 69-812, which provides :
“The county or district boards of health shall submit to the tax levying authorities an annual budget, at least two weeks prior to the dates specified by law for setting up official budgets. Funds for operation of full-time health departments shall be derived from the general fund of participating agencies, provided, however, if the general fund is insufficient to meet the approved budget, a levy, not to exceed one (1) mill, may be made on the assessed valuation in addition to all other taxes allowed by law to be levied on such property.”
We conclude that this statute is dissimilar to the statute which was in question in the Great Northern ease, supra, and is not unconstitutional as being a deprivation of property without due process of law.
This court has recognized the difference between general taxes and special taxes in the Great Northern ease, supra. The two types of taxes have been differentiated as follows.- “ ‘ Generar taxes are those imposed throughout the state or some civil division thereof for the purpose of raising- revenue for the support of the government and for general purposes, and which are levied on. the ground of general public benefits, while ‘special’ taxes are those which are levied for a special or local purpose for the benefit of a part only of the body politic, and which rest on the supposition that a portion of the public is specially benefited in the increase of value to the property of the persons against whom the tax is levied.” 84 C.J.S. Taxation § 3, p. 39.
In the Great Northern case, supra, this court, speaking through Mr. Justice Bottomly, stated at page 360 of 134 Mont, at page 504 of 332 P. 2d: “In the case at bar the statute provides for a special tax requiring a special assessment upon the property to be beneficially affected to the end that those benefited shall pay the whole cost through the special tax, the proceeds used in buying the apparatus and maintaining the fire department of the district or paying a city or town for extension of such fire protection to the district.” In distinguishing Hutchins v. Board of Supervisors of Alcorn County, 227 Miss. 766, 87 So.2d 54, the court continued: “The Hutchins case, supra, clearly points out the fact that a special tax or assessment was not to he imposed in that case. There the cost of the improvements were to be raised by the general taxing powers of the county. They point out that the state law gave the property owners a right to be heard upon the valuation of his property for general taxation. So also does the law of the State of Montana in respect to general county taxes. But nowhere in this statute, R.C.M.1947, § 11-2008, is such provision made in respect to this special tax.” So the Great Northern case, supra, concluded that the tax imposed by the statute in question in that ease was a special tax and therefore that adequate provisions for notice and hearing must be present in the statute itself to withstand the constitutional attack with respect to due process. See also In re Valley Center Drain District, Big Horn County, 64 Mont. 545, 211 P. 218; Scilley v. Red Lodge—Rosebud Irr. Dist., 83 Mont. 282, 272 P. 543; Mitchell v. Banking Corporation of Montana, 94 Mont. 183, 22 P.2d 155.
However, as can clearly be seen by the court’s language it was recognized that in the case of a general tax no such special provisions for notice and hearing are needed since Montana law already provides property owners with the right to be heard on the valuation of their property for general taxation. Herein lies the difference between the Great Northern case, supra, and the case at bar. The statute in question in the case at bar provides for a general tax where the statute in question in the Great Northern ease, supra, provided for a special tax. Therefore, the Great Northern case, supra, has no application.
It should be borne in mind that section 69-812, provides, in part, that “the county or district boards of health shall submit to the tax levying authorities an annual budget, at least two weeks prior to the dates specified by law for setting up official budgets.”
Sections 16-1901 to 16-1911, R.C.M.19á7, relate to the county budget system. These sections require that each county official, elective and appointive, file with the county clerk detailed and itemized estimates of probable revenues and expenditures, required by his or her office. The county clerk then tabulates the complete expenditure program of the county for the current year and submits the same to the county commissioners (including the annual budget of the county or district boards of health). The commissioners then consider the same, make changes and additions, and such tabulation with the changes and additions constitutes the preliminary budget. Then the commissioners cause a notice to be published stating that the board has completed its preliminary budget, and that the same is on file and open to inspection, and that said board will meet on a day certain for the purpose of fixing the final budget, and that any taxpayer may appear and may be heard for or against any part of the budget. If the county commissioners then find that the general fund of the participating agencies is insufficient to meet the approved budget required for the operation of full-time health departments, a levy of not to exceed one (1) mill may be made as provided in section 69-812.
Therefore, we conclude that through other Montana statutes there are sufficient provisions for notice and hearing for the general tax authorized by section 69-812, to be constitutional and not deemed a taking of property without due process of law in violation of the Montana Constitution, Art. Ill, § 27, or the United States Constitution, amend. XIV, § 1.
The third question is whether sections 69-801 to 69-814 violate the Montana Constitution, Art. IV, § 1, by making an unconstitutional delegation of the authority of the legislature to a board, giving the board the power to make rules and regulations that carry criminal penalties.
Section 69-809 provides that county and district boards of health may enact rules and regulations “pertaining to the prevention of disease and the promotion of public health” in the areas of their jurisdiction, “but in no instance shall such rules and regulations be less effective than, nor in conflict with, rules and regulations promulgated by the state board of health. ’ ’
Section 69-813 provides that violation of any part of this act or of the rules or regulations that are authorized thereby “shall be punished by a fine of not less than ten ($10.00) dollars nor more than five hundred ($500.00) dollars for each offense or imprisonment in the county jail not exceeding ninety (90) days.” Appellant contends that these provisions are in violation of the Montana Constitution, Art. IV, § 1, since they are an unconstitutional delegation of the power of the legislature to a board or bureau.
The Montana Constitution, Art. IV, § 1, provides:
“The powers of the government of this state are divided into three distinct departments: The legislative, executive and judicial, and no person or collection of persons charged with the exercise of powers properly belonging to one of these departments shall exercise any powers properly belonging to either of the others, except as in this constitution expressly directed or permitted.”
The fact that the board would have the power to make rules and regulations, violation of which, by statute, sanction criminal penalties does not subject the statute to this constitutional attack. The rule in this respect has been stated as follows: “Prescribing of penalties is a legislative function, and a commission may not be empowered to impose penalties for violations of duties which it creates under a statute permitting it to make rules. However, the legislature may validly provide a criminal or penal sanction for the violation of the rules and regulations which it may empower administrative authorities to enact.” 42 Am.Jur., Public Administrative Law, § 50, p. 355, and authorities cited therein.
In the case at bar, the fact that a violation of these rules and regulations may constitute a criminal offense is of no consequence since the legislature has provided this penalty by section 69-813, and the board is without the power to prescribe what the penalty will be.
However, the appellant does have a valid argument in another respect. When the legislature confers authority upon an administrative agency it must lay down the policy or reasons behind the statute and also prescribe standards and guides for the grant of power which has been made to the administrative agency. The rule has been stated 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 pres cribe with 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.
“s* sí # 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, pages 324, 325.
What are the standards and guides which the legislature has supplied by the statutes questioned in the case at bar? As we have already pointed out section 69-809 provides that the county and district boards of health may enact rules and regulations “pertaining to the prevention of disease and the promotion of public health” over the areas of their jurisdiction “but in no instance shall such rules and regulations be less effective than, nor in conflict with, rules and regulations promulgated by the state board of health.” We do not believe that this provision is sufficiently definite to lay down proper standards for the guidance of the agency. What did the legislature mean by “prevention of disease and the promotion of public health”?
Does this only mean that the boards of health can make quarantine regulations, or could they go so far as to prescribe a series of physical exercises for the populations within their areas for the promotion of public health? May these boards make rules and regulations concerning mental health, and birth control? It would seem that the standards would allow regulation of any of these items so long as the state board of health has not acted. It must be remembered that the validity of a statute is determined by what may be done under it not by what has been done under it. State ex rel. Redman v. Meyers, 65 Mont. 124, 210 P. 1064.
In the recent Colorado case of Casey v. People, 139 Colo. 89, 1959, 336 P.2d 308, 309, the Colorado Supreme Court held un constitutional a statute similar to that in question in the case at bar, authorizing district boards of health to make rules and regulations, violations of which constituted misdemeanors. There, the district board of health attempted to pass a regulation requiring trailer courts to have licenses. Casey was prosecuted for not having obtained such a license while operating a trailer court. In the course of its opinion, the court stated: “As stated in 16 C.J.S., 580, Constitutional Law § 138:
“ ‘Executive officers, boards or commissions may not be authorized by the legislature to promulgate rules and regulations of a strictly and exclusively legislative character. The legislature may not vest executive officers or bodies with uncontrolled discretion in making rules and regulations and must establish sufficient standards for their guidance.’
“In Sapero v. State Board, supra [90 Colo. 568, 11 P.2d 555], it is stated that though the power to make a law may not be delegated, the power to determine a state of facts, upon which the law depends may be delegated.” The court then refers to other Colorado authorities.
The standards which the legislature has indicated in the case at bar are insufficient and the statute is therefore unconstitutional as an invalid delegation of the power of the legislature to these boards in violation of Montana Constitution, Art. IV, § 1. The limits are much too broad as specified in the statute, and the board has actually been given arbitrary or uncontrolled discretion as to health matters with no real limits set up within which that discretion may be exercised.
In the case of Chicago, M. & St. P. R. Co. v. Board of R. R. Com’rs, 76 Mont. 305, 314, 315, 247 P. 162, 164, this court has stated:
“We think the correct rule as deduced from the better authorities is that if an act but authorizes the administrative officer or board to carry out the definitely expressed will of the Legislature, although procedural directions and the things to be done are specified only in general terms, it is not vulnerable to the criticism that it carries a delegation of legislative power. ’ ’ This rule has been approved in Northern Pacific R. Co. v. Bennett, 83 Mont. 483, 272 P. 987; Barbour v. State Board of Education, 92 Mont. 321, 13 P.2d 225; State ex rel. City of Missoula v. Holmes, 100 Mont. 256, 47 P.2d 624, 100 A.L.R. 581; State v. Andre, 301 Mont. 366, 54 P.2d 566; State ex rel. Stewart v. District Court, 103 Mont. 487, 63 P.2d 141; and Thompson v. Tobacco Root Co-Op State Grazing Dist., 121 Mont. 445, 193 P.2d 811. See also State v. Johnson, 75 Mont. 240, 243 P. 1073.
We do not disagree with this established rule as enunciated by these Montana authorities. However, the case at bar does not fall within the purview of this rule. In all of the cases which support the rule as set forth in the Chicago Ry. .Case, supra, the statutes which gave the administrative agencies their authority did so by a much more specific enumeration of the powers which were granted to these agencies. In our examination of these authorities, we nowhere find anything close to the general grant of authority that is made by the direction to district boards of health of authority to enact rules and regulations “pertaining to the prevention of disease and the promotion of public health” as provided in section 69-809.
In the case of State v. Stark, 100 Mont. 365, 371, 52 P.2d 890, 892, this court has stated:
1 ‘ 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 unaseertainable limits within which to act. The statute in the case at bar is too broad to prescribe with reasonable clarity the limits within which the officer or board may act.
We recognize that there has been a relaxation of the requirement of specific standards and an allowance of more general standards for grants of power to administrative bodies in the area of police regulation, including public health. 42 Am.Jur., Public Administrative Law, § 45, and authorities cited therein. However, even in these areas we hold that there must be a more definite standard set out by the legislature than has been done in the case at bar.
It might be pointed out that sections 69-101 to 69-126 much more specifically enumerate the duties and powers of the state board of health than has been done by the statutes in question in the case at bar, respecting county and district boards of health. There are also sections to assure that a person will first have notice of his violations and a reasonable time to correct the deficiency before he is deemed guilty of a misdemeanor in the state board of health provisions. None of these provisions are present in the statutes now in question. It would seem that the provisions creating the state board of health have followed much the wiser course in complying with constitutional due process. See H. Earl Clack Co. v. Public Service Comm., 94 Mont. 488, 502, 503, 22 P.2d 1056.
Montana Session Laws of 1945, Chap. 171, § 15, provides a saving clause for the legislation in question as follows:
“If any section, subsection, sentence, clause or phrase of this act is, for any reason, held to be unconstitutional, or in conflict with any other section, part, or provision of this act, then the decision of the court shall affect only the section, subsection, sentence, clause or phrase so declared to be unconstitutional or in conflict, and shall not affect any other section, part, or provision of this act. The legislature hereby declares that it would have passed this act and each other section, subsection, sentence, clause and phrase hereof irrespective of the fact that any one or more other sections, subsections, sentences, clauses or phrases to be declared unconstitutional.”
This court has recognized that where a statute con tains a saving clause it is presumed that the valid portions would have been enacted without the invalid portions. State ex rel. City of Missoula v. Holmes, 100 Mont. 256, 47 P.2d 624, 100 A.L.R. 581. In compliance with this saving clause, we hold that only sections 69-809 and 69-813, are unconstitutional as an invalid delegation of power by the legislature to a board in violation of the Montana Constitution, Art. IV, § 1, and the remaining provisions of the statute in question are allowed to stand.
For the reasons that we have stated the order of the district court is reversed in part.
MR. CHIEF JUSTICE' HARRISON and MR. JUSTICES BOTTOMRY and ANGSTMAN concur.
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MR. CHIEF JUSTICE JOHNSON
delivered the opinion of the court.
Plaintiff appeals from a judgment rendered in favor of defendant upon a directed verdict. This is the second appeal of the cause, this court in Eliason v. Geil, 114 Mont. 97, 132 Pac. (2d) 158, having reversed a former judgment rendered in defendant’s favor upon a verdict directed by a different trial judge.
Plaintiff’s contentions are that upon this appeal the evidence is substantially the same as on the prior appeal and that the court’s prior decision established the law of the case. Defendant’s contentions are that the evidence is substantially different and that the prior decision was therefore not controlling ; and that in any event the prior decision of this court was erroneous and should not be followed as the law of the ease.
Upon examination of the records we find that the evidence at the two trials was substantially the same upon the points here in question, and we do not find that our decision upon the prior appeal was erroneous. We must therefore again reverse this cause.
The parties have argued both the merits and the applicability of the rule of the law of the case. As a control upon this court the rule seems upon its merits to be of much less substance than the rule of stare decisis, since the latter may well have controlled or induced the actions of a party to his detriment, while the former cannot possibly have had that effect. It seems, therefore, that upon a subsequent appeal there is much better reason for this court to depart from the rule of the law of the ease in order to correct what it then regards as an error than for it to depart from the rule of stare decisis for the same purpose. However as a control upon the trial court it would seem entirely mandatory if the constitutional purpose of the establishment of a supreme court is to be given effect. (Conway v. Monidah Trust Co., 51 Mont. 113, 149 Pac. 711; Carlson v. Northern Pacific Railway Co., 86 Mont. 78, 281 Pac. 913.)
Upon the question of the applicability of the rule of the law of the case where the evidence is not precisely the same, it seems apparent that in many instances able and honest minds may reasonably differ as to whether it is substantially the same. We feel however that in a situation of the kind the prior decision of this court should be followed by the trial court upon the second trial unless, upon comparison of the evidence submitted at both trials, it finds such a substantial difference as to make the former decision inapplicable. It appears that in this ease such comparison was not made but that in ruling upon the motion for a directed verdict the trial judge considered only the evidence submitted upon the second trial. It follows, therefore, that full effect was not given to this court’s decision upon the prior appeal.
We have examined the other specifications of error but find that none of them points out reversible error.
The judgment is reversed and the cause remanded for a new trial as against defendant Geil. On account of the age and condition of the plaintiff and of other witnesses, and the delay incident to two trials and two appeals of the cause, the new trial should be had as promptly as possible.
Associate Justices Erickson, Anderson, Adair and Morris concur.
|
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PER CURIAM:
Original Proceeding.
Petitioners on July 16, 1969, filed an application for an appropriate supervisory writ. Counsel were heard ex parte and an order staying further proceedings and requiring cause to be shown on July 24, 1969, was issued.
On the return day counsel for all parties appeared and the matter was argued before the Court. At the conclusion of the argument counsel were granted five days to furnish additional briefs and the matter taken under advisement.
The Court now being advised and having considered the various issues raised by the parties, hereby ORDERS:
1. That petitioner Jim Sheridan be granted at least 45 days in which to complete discovery and to prepare for trial, and such further time, if any be requested, as in the discretion of the district court appears necessary and proper.
2. The setting of the case for trial is vacated and it should not be reset for trial until the cause is at issue.
3. As to the action of the Court on the motion for separate trials, this is a matter within the discretion of the Court and while prematurely handled we decline to interfere at this time since no clear abuse of discretion has been shown. It might be well, however, for the Court to review the motion when the cause is at issue and is ready to be set for trial.
|
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DECISION
The application of the above-named defendant for a review of the sentence of five years, imposed on August 19, 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 first degree burglary punishable by not less than 1 nor more than 15 years imprisonment, yet received but a 5 year sentence with 95 days jail time credit, and will be eligible for parole consideration in June, 1969, after being received August 21, 1968, although he has. a prior felony covictipn, which, if used against him could have resulted in imprisonment without limit.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Jack D. Shanstrom, Sid G. Stewart.
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MEMO OPINION
PER CURIAM:
Original proceeding. Petition for writ of habeas corpus filed by Jerry Gallagher, an inmate of the Montana State Prison, appearing pro se.
From the petition and accompanying exhibits it appears that an information was filed against Gallagher in the district court of Fergus County on July 21, 1959, charging him with the crime of burglary in the first degree. The minutes of the district court disclose that on July 23, 1959, Gallagher was before the district court for arrangment, at which time the court informed him of his statutory rights as to an attorney and Gallagher waived his rights to an attorney. He received copy of the information, it was read to him, he was informed by the court of his statutory time for entry of plea, he waived that time and entered a plea of not guilty.
He was again before the district court on November 25, 1959, and asked permission to withdraw his former plea of not guilty, which request was granted, and he then entered a plea of guilty. He was then informed by the court of his statutory time for having sentence passed, he waived that time and asked that the sentence be passed at that time. He was asked if he had any legal cause to show why judgment and sentence of the court should not be pronounced against him, to which he replied that he had none. He was then sentenced to five years in the state prison. .
In November of 1967 Gallagher was convicted of the crime of assault in the second degree and sentenced to a term of 5 years in the state prison. This conviction was appealed to this Court and affirmed. See State v. Gallagher, 151 Mont. 501, 445 P.2d 45. Gallagher was not charged with a prior conviction but he alleges that it was brought up during the course of the trial and was used by the prosecuting attorney in argument to support his guilt.
The trial transcript covering the cross-examination of Gallagher reads:
‘ ‘ Q. Mr. Gallagher, have you ever been convicted of a felony ? A. (No response.)
“Q. Have you ever been convicted of a felony? A. Yes.”
This concluded the testimony on the trial, both defendant Gallagher and the State resting.
Gallagher’s counsel on his appeal to this Court was extremely diligent in raising all questions with respect to his trial in the district court, but no mention was ever made by such counsel of the present contention raised by this petition.
' We note that the arraignment procedure followed by the district court in 1959 was thorough and complete and as required by our statutory law then in effect.
Petitioner argues that because the minutes do not show that he was advised of his right to counsel when he appeared before the district court on November 25, 1959, that he did not intelligently and understandingly waive his right to counsel and that he was not informed of his right to be represented by court appointed counsel at the time he changed his plea. Of course he was so advised at the time of his first appearance in the district court on July 23, 1959.
While petitioner purportedly relies upon Burgett v. Texas, 389 U.S. 109, 88 S.Ct. 258, 19 L.Ed.2d 319 it must be noted that we are not here dealing with a case where a prior criminal conviction record was admitted to enhance the punishment since no prior conviction was charged. To the contrary, the petitioner’s punishment of only 5 years, whereas under section 94-4713, R.C.M.1947, he would have received a minimum sentence of ten years, indicates conclusively that the prior criminal conviction was not used to enhance the punishment.
Nor is the record silent as to waiver of counsel as we have already pointed out. Considering all the pertinent and material matters presented, we find no facts sufficient to entitle the petitioner to the writ prayed for.
For these reasons the petition is denied and the proceeding is dismissed.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court-
This is an appeal from a judgment terminating a trust. On October 26, 1923, Harry W. Child created a testamentary trust.. Harry W. Child died in 1931. His will made some specific-bequests to family members, employees and friends. The twelfth paragraph of such will provided:
“TWELFTH: All the rest, residue and remainder of my estate, real, personal and mixed, wheresoever situate, of which I may die seized or possessed, or to which I may be entitled at the time of my decease, I give, devise and bequeath to my wife, Adelaide Dean Child, my son-in-law William M. Nichols: and my old friend and business associate Albert L. Smith of' Helena, Montana, and to their successors, for and during the life of the survivor among my said wife, my mother, Sarah E-Child, my sister, Katherine C. Bach, my son Huntley Child! and until the youngest surviving among the children of my son Huntley living at my death and herein named shall reach the age of forty years or sooner dies; In Trust nevertheless,, for the following uses and purposes, that is to say:
“1. To take, hold and manage said property, and from the net income therefrom to pay,
“ (a) To my mother, Sarah E. Child, of Seattle, Washington,, or for her care and comfort, the sum of One Hundred and Fifty Dollars per month so long as she shall live;
“(b) Pay to my sister Katherine C. Bach of Pasadena, California, the sum of One Hundred Dollars per month so long as she shall live;
“(c) Pay to Marion Child, Huntley Child (Junior) and Elizabeth Child, children of my son Huntley Child, the sum of Two Hundred Dollars per month, share and share alike, until they shall respectively reach sixteen years of age, and thereafter, so long as my said wife shall live, to pay to each of them then living the sum of Fifteen Hundred ($1500.00) Dollars per annum;
“(d) Pay to my son Huntley Child the sum of One Hundred and Fifty Dollars per month until he shall reach fifty years of age or sooner dies;
“(e) So long as my wife, Adelaide Dean Child, shall live, the remainder of the annual net income from said trust estate, remaining after making the annual payments hereinabove specified, shall be paid to her annually. Upon the death of my said wife, said remainder of the annual net income shall be paid annually one-sixteenth thereof to my son Huntley Child so long as he shall live, three-sixteenths thereof to the above named children of said son living at the death of my said wife, share and share alike, and to the issue of any deceased child above named of my said son dying leaving issue, such issue to take per stirpes the share of the parents and not per capita, so long as this trust shall endure, and the remainder of said net income to be paid to my daughter Ellen Dean Child Nichols, and to her heirs, so long as this trust shall endure.
“2. Upon the termination of the trust term hereinabove specified, to deliver, transfer and convey the trust property remaining in the hands of my Trustees, one-fourth thereof, share and share alike to the above named children of my son Huntley Child, then living, and to the issue of any dying leaving issue, such issue to take per stirpes the share of the parent and not per capita; and all the rest, residue and remainder of said trust property remaining in the hands of the Trustees shall be transferred, conveyed and delivered to my daughter Ellen Dean Child Nichols, and to her heirs, free of this trust.
From the foregoing quote of paragraph Twelfth, the trial court found:
“(8) In Clause Twelfth of his Last Will and Testament, Harry W. Child created a trust to pay the income therefrom to various individuals for designated periods of time; that said payments of income were to be made for life, to his mother, Sarah B. Child, his sister, Katherine C. Bach; his wife, Adelaide Dean Child; and his son, Huntley Child, Sr. Also, following the death of Adelaide Dean Child, income from three-fourths of said trust property was to be paid to Ellen Dean Child Nichols, and to her heirs, until termination of said trust according to its terms. Following are dates of death of persons involved — mother, Sarah E. Child, before 1931; Harry W. Child, on February 4, 1931; sister, Katherine C. Bach, in 1931; his wife, Adelaide, on October 17, 1949; and, his daughter, Ellen Dean Child Nichols, on October 13, 1966.”
The trial court also found:
“(9) By clause Sixth of his Will, Harry W. Child released and discharged all debts and obligations owed to him by his son, Huntley, Sr. By Clause Twelfth of his Will, he created the trust here involved, and divided the trust estate between the two family branches of his two lineal descendants, one-fourth to the lineal descendants of the son, Huntley, Sr., and three-fourths to the lineal descendants of Ellen Dean Child Nichols. Huntley Child, Sr., does not now have or own any interest whatsoever in the trust estate. Any equity or interest that he had in said trust has been fully and finally terminated. The three children of Huntley, Sr., that is, Marion Child Sanger, Elizabeth Child Pomeroy, and Huntley Child, Jr., now are the owners of, and receiving all income from that one-fourth interest in the trust estate to be ultimately distributed to them on final termination under the terms of said Will. By voluntary action, confirmed by decree of this Court several years ago, Huntley Child, Jr. transferred one-half of his interest in the corpus of said trust to Emily Child Vucanovieh. By the terms of the Will .of Harry W. Child, confirmed by the Decree of this Court duly given and made herein on July 26, 1968, Adelaide Nichols Low, John Q. Nichols, and Dean Nichols, are the owners of the remaining three-fourths of the trust estate which will be distributed to them in accordance with said Decree of termination of said trust as to said three-fourths interest.”
By October 17, 1949, mother, sister and wife were all'dead, whereupon two separate estates emerged within the single trust as shown in pragraph 9 of the trial court’s findings. Also, as referred to in paragraph 9 above, on October 16, 1958, there was a decree in the trial court wholly divesting Huntley, Sr., of any interest in the trust estate, and confirming that Huntley, Jr. had conveyed one-half of his residuary corpus (but not income) to Emily Child Yueanovieh.
Until August of 1966, the primary investment for the bulk of the trust funds was in the Yellowstone Park Company. It was not feasible to divide or distribute the trust assets. On that date the Yellowstone Park Company was sold, and since that date the assets have been diversified in cash and negotiable securities totaling over $6,000,000. The two distinct interests referred to above can now be safely and economically separated.
Daughter Ellen died on October 13, 1966. Thereafter one of the trustees filed a petition for a determination of ownership of the interest of Ellen Dean Child Nichols, her estate and her heirs in the trust estates. Appearances were made by a representative of her estate, by all the income beneficiaries and by the ascertained corpus beneficiaries.
The Nichols heirs petitioned for termination and distribution, directly to them, of the Nichols family % portion of the trust. . .!■
Emily F. (Child)’ Vucanovich, one of the corpus beneficiaries of the Child family % portion of the trust, petitioned for termination and distribution of the Child family portion. At this time, all of the ascertained corpus beneficiaries were brought into the ease.
The court by order dated July 26, 1968, determined the ownership of the Nichols interest to be iii her heirs (her three children) and not in her estate. By judgment dated October 30, 1968, the court. ordered the -entire trust terminated and distributed as of November 1, 1968.
At.the proceedings, since the death of Ellen'Nichols in 1966, Huntley Child, Jr., Marion Child Sanger, and Elizabeth Child Pomeroy have resisted the termination of the trust.- Child, Sanger- and Pomeroy, it will be remembered- are the children of. Huntley Child, Sr. Child has three children, who are termed “contingent beneficiaries”. They have not appeared in any manner as appellants nor did they resist. termination of the trust. Sanger has three children and Pomeroy has two children.
. Thus, the five grandchildren out of eight grandchildren- of Huntley Child, Sr., have what is termed a contingent interest; for example, if Marion Child Sanger predeceased her father, Huntley, Sr., then Marion’s children would begin receiving her share of the trust income, and on Huntley, Sr.’s death, they would take her share of the principal; this, of course, if the trust still continues.
The other complicating factor, and in a sense, the real complicating factor is the “one-half interest in the remainder to be distributed to Huntley Child, Jr. upon termination of the trust” as agreed upon between Huntley Child, Jr. and Emily Vueanovich in the divorce decree of 1953. That decree, among other things, provided:
“6. Husband further agrees that as a part of the settlement with Wife, he has executed and has herewith delivered to Wife an absolute and irrevocable assignment of one-half (%) of all his right, title and interest in his share of the Harry W. Child Trust, reserving to himself, however, the income from said share of said trust.
.“And in conjunction with, and in addition to, said aforementioned assignment of interest in said Trust Estate (but without any intention of-changing or abrogating said formal assignment of interest in said trust, which has-been executed by Husband, accepted by the Trustees, and delivered to Wife, and which is to be and remain in force and effect), Husband herein, as a part of this agreement, has transferred sold, assigned and set over, and by these presents he does transfer, sell assign, set over and deliver unto Emily F. Child, Wife herein, an undivided one-half (y2) of all of the right, title, equity or interest that Husband has, or owns in the aforementioned trust or trust estate, established by and through the last will and testament of said Harry W. Child, deceased; it is intended, by this agreement along with said aforementioned separate formal assignment of interest, and as of the date hereof, to transfer- and assign to said Emily P. Child, her heirs and assigns, a one-half interest and equity of all the right, title, interest or equity of whatsoever nature that Husband may now have, or own, in said trust, or trust estate, or otherwise; and from and after the date hereof said Wife, shall be, for all purposes, except as herein otherwise provided, the full and absolute owner of the interest or equity in said trust and trust estate as herein transferred and assigned to her; and with the right in said Wife upon termination or distribution of said trust, to have her interest and portion of the principal or corpus of said trust estate, as herein designated, distributed directly to her, as the owner thereof; and, except for payment of annual income thereon to Husband during the term of said trust as hereinabove specified, said Wife, Emily P. Child, shall, upon and after the execution of this instrument, be in all respects and for all purposes, a beneficiary of said trust and trust estate, and with all the rights and privileges thereof, and with the right, as such beneficiary, to receive all of the benefits accruing out of the interest hereby assigned to her, and to be considered, in all respects, as a regular beneficiary under said trust to the extent of the interest herein assigned to her; — that is to say a full one-half of all the right, title, equity, or beneficial interest of whatsoever nature that Husband may now have, or own, in said trust or trust estate, together with all benefits or increases in value hereafter accruing to the same.” (Italics supplied).
The divorce decree also provided for alimony payments until Emily remarried, which she did.
Thus, what we have referred to as the complicating factor is the assignment by Huntley, Jr. of y2 of his share, reserving, however, the income until “termination or distribution” of said trust. Huntley, Jr. would like to keep the income until the death of Huntley, Sr. Emily Yucanovich would like to have the termination now.
■The appellants, thus, insist on measuring the term of the trust by the life of Huntley, Sr. We shall repeat the term of paragraph Twelfth as it applied:
•“* * ® for and during the life..of the survivor among my said wife, my mother, Sarah E. Child, my sister, Katherine C. Bach, my son, Huntley Child, and until the youngest surviving among the children of my son Huntley living at my death and herein named shall reach the age. of forty years or sooner dies, * * *”
Those named were affected as follows’:'-
Name Relationship to Harry W. Child Will Provision - for Termination as Measuring Life Date of Termination as Measuring Life
Adelaide D. Child Wife Death Died in 1949
Sarah E. Child Mother Death Predeceased Harry
Katherine C. Bach Sister Death. Died in 1931
Huntley Child, Sr. Son Death Still living
Marion Child Granddaughter Death or age 40 Became 40 in 1949
Huntley Child, Jr. Grandson Death or age 40 Became 40 in 1951
Elizabeth Child Granddaughter Death or age 40 s&liDUi Became 40 in 1954.
The order of October 30, 1968, herein appealed, would have the effect of terminating Huntley Child, Sr. as a measuring life as of November 1, 1968.
Ever since Elizabeth Child’s 40th birthday on March.9, 1954, the only measuring life of this trust has been Huntley Child, Sr.'
¥e reiterate that Huntley Child, Sr. was completely divested of any interest as noted in the decree of October 16, 1958. The appellants, however, insist that his life is the only measuring life; and that the trust has continued since March 9, 1954 when Elizabeth became 40' years of age, only because Huntley, Sr. continued to live. However, as we have heretofore shown, the trust could not, as a practical matter, have been terminated until 1966 when the assets were sold.
Previous actions of the trustees, approved by court decrees, permitted assignments of parts of interests by Ellen Dean Nichols in 1949, 1950 and 1953. This was as to both principal and income. As to Huntley, Jr., he too, assigned, the trustees approved, as did the court.
With this background, our problem is whether a trust can be terminated where the last surviving measuring life no longer has any interest in the trust, but where one or more beneficiaries do not consent to termination.
In approaching the answer to the problem, we have a somewhat strange position of appellants agreeing to termination of % of the trust — even though the measuring life is the same— but disagreeing as to the termination of the % interest because it affects them. Along with this position, the same protesting beneficiaries have either dealt with their trust shares as their “in-being” property or acquiesced in others doing so.
Two rules of trust appear. Appellants rely on the rule-' stated in Restatement of Trusts 2d § 340, as follows:
“(1) Except as stated in Subsection (2) and in §§ 335 and 336, if one or more of the beneficiaries of a trust do not consent to its termination or are under an incapacity, the others cannot compel the termination of the trust, except in accordance with the terms of the trust.
“(2) Although one or more of the beneficiaries of a trust do not consent to its termination or are under an incapacity, the court may decree a partial termination of the trust if the interests of the beneficiaries who do not consent or are under an incapacity are not prejudiced thereby and if the continuance of the trust is not necessary to carry out a material purpose of the trust.”
The appellants then go on to argue that the exception in subsection (2) does not apply to the termination of the Child family !4 interest, because the interest of the Child beneficiaries who do not consent or are under capacity will be prejudiced :
(1) Huntley Jr. will loso x/¿ of his trust income.
.(.2) Marion Sanger’s three and Elizabeth Pomeroy’s two children will be cut off from the possibility of participating in the trust income or principal because Marion’s and Elizabeth’s children take their respective shares if they should die before Huntley, Sr. Here, again, the appellants insist that the measuring life of Huntley, Sr. is the sole criterion of the trust termination. The appellants go on to argue that the 5th generation, grandchildren of Marion, Huntley, Jr., and Elizabeth- also have contingent interests to be protected.
The second rule of trusts to be considered is — a trust is extinguished by the entire fulfillment of its object, or by -such object becoming impossible or unlawful. Section 86-601, R.C.M.1947; Restatement of Trusts 2d § 335.
What then was the object or purpose of the trust? A reading of the provisions of the trust make it clear, as the trial court found, that payment of net income annually to certain life beneficiaries was the object. The corpus of the trust estate was to be maintained intact for the benefit of the remainder-men beneficiaries, and the trust estate automatically terminated at the death of the last survivor of the intermediate life income estates. In other words, the trust terminated on the same same date the income payments terminated. Under paragraph Twelfth, previously quoted, it seems clear that the only purpose of the trust was the payment of income to his wife, mother, sister, and his son Huntley, Sr., during their lifetime, and that the trust was to endure only so long as the income was payable to some one of those four individuals. The testator naturaliy expected that period of time to be measured by the duration of their lives. The mother, sister and wife are long since deceased, and the right of Huntley, Sr. to receive income payments has been forfeited and terminated.
So, the sole purpose and object of the trust, payment of income for life to testator’s wife, mother, sister and son, has either been fulfilled or no longer possible of fulfillment. Huntley, Sr. is out, and the youngest child named, Elizabeth, is long past 40 years of age.
Under sections 91-201, 91-202 and 91-205, R.C.M.1947, the intent of the testator has been fulfilled.
Appellants also urge that the divorce decree of 1953 and its property agreement dated April 24, 1953, is being violated in that the parties agreed that Huntley, Jr. had the income until the death of Huntley, Sr. which would terminate the trust. Sixteen years later, Huntley, Sr. is alive at age about 84. Appellants urge that the death of Huntley, Sr. is the natural termination date. Again, the entire argument of appellants is based on the measuring life of Huntley, Sr. as being the sole determinative factor of the termination of the trust. We have heretofore discussed the fact that the termination could and does happen by the impossibility of fulfillment and the entire fulfillment of its object. Thus, the divorce property settlement, written and agreed to as it was, depended upon legal termination of the trust, not on just the death of a measuring life. We recognize appellants’ argument that there is-still a Huntley, Sr. lifetime interest — but that he just doesn’t own it now. However, this does not change our view of the-testator’s intent as expressed above.
We find that the district court was correct in finding that the trust should be terminated, both as to the % Nichols, in terest and as to the Child interest. Accordingly, the judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES JOHN CONWAY HARRISON, HASWEEL and BONNER, concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
Petition by Harold R. Brown, an inmate of the Montana State Prison, appearing pro se., wherein he apparently seeks leave to file an appeal from a denial of his petition for a writ of error coram nobis by the District Court of the Seventeenth Judicial District, in and for the County of Valley.
It is extremely difficult to decipher from the hand written papers filed in this court just what type of relief petitioner is seeking. While the petition itself seeks an appeal as above-stated, the accompanying brief seems to request a withdrawal of the guilty plea entered by the petitioner and requests a new trial.
Appeals are governed by the statutes and section 94-8106, R.C.M.1947, provides:
“An appeal may be taken by filing with the clerk of the court in which the judgment or order appealed from is entered or filed, a notice stating the appeal from the same, and serving a copy thereof upon the attorney of the adverse party.’’
Section 94-8105, R.C.M.1947, provides:
“An appeal from a judgment may be taken within six months after its rendition, and from an order within sixty days after it is made.’’
Since the petition before us does not contain any of the District Court records in this matter, it is impossible to determine what type of proceeding was filed therein by the petitioner other than his designation as a writ of error coram nobis. However, if the order entered in the District Court is of the type embraced within sub-section 3, of section 94-8103, R.C.M. 1947, which provides that an appeal may be taken by the defendant from an order made after judgment, affecting the substantial rights of the party, the statutory time of sixty days has not expired since petitioner asserts the court’s order was made on March 19, 1962. Petitioner’s remedy in such event would be to file notice of appeal in the District Court as provided in section 94-8106, supra.
Petitioner has written many pages in his brief with regard to a request for change of plea and motion for a new trial.
The petitioner herein applied to this court in March of 1961 for a writ of certiorari and in such application raised the denial of a motion for a new trial which he had filed some five months after his plea of guilty. The District Court at that time in its order stated:
“That the so-called motion for a new trial was frivolous, it was without merit, it was not based upon any statutory requirements as provided by Montana law and beyond the time when such a motion could be filed in order that the court might have jurisdiction thereon.”
This court, after reviewing the application for writ of certiorari and finding no merit therein, denied relief and dismissed the proceedings.
Thereafter petitioner made application to the Supreme Court of the United States for a writ of certiorari and such petition was denied by that court on December 4, 1961.
The matter of a request for change of plea does not appear to have been before the District Court and is raised in this proceeding, so far as we can determine, for the first time. Such request would, of necessity, have to have been made in the trial court and it is quite obvious from the almost identical statements made in the previous application for writ of certiorari and the present petition that no such request was ever made.
The District Court appointed two capable attorneys to represent petitioner in the District Court proceedings wherein he was charged with the murder of his wife, the crime having been committed on November 26, 1959. One of such counsel was the oldest practicing attorney in Valley County, Montana, who had engaged in an extended trial practice for many years.
Following commission of the offense petitioner fled from this state and was apprehended at Bismarck, North Dakota, and in that city he signed a written confession of the commission of the crime. He was extradited and held for trial.
On April 4, 1960, petitioner with his counsel appeared before the court and entered a plea of guilty of murder. The District Court then set a date to hear evidence for the purpose of determining the degree of the crime. This hearing consumed two days and at the conclusion thereof the District Court determined that the crime was murder in the-second degree, and the defendant was sentenced accordingly.
Petitioner is extremely dissatisfied with the sentence pronounced by the District Court, but it appears from the record that the petitioner weighs something over 200 pounds and is six foot, six inches tall, being thirty-five years of age; his wife was approximately five feet tall and weighed approximately 100 pounds. Pictures introduced at the hearing indicated she had been brutally beaten, received a skull fracture, her face badly beaten, a tooth knocked out and her ribs broken. Doubtless these facts did influence the court in pronouncing sentence upon the petitioner, as they do this court.
Petitioner accompanies his petition with a motion to appoint counsel. As we have heretofore stated there is no provision in our law for appointment of counsel in this appellate court, such appointments are made by the district courts. See sections 94-6512 and 94-6513, R.C.M.1947, and State ex rel. Irvine v. District Court, 125 Mont. 398, 239 P.2d 272; In re Petition of Pelke, 139 Mont. 354, 365 P.2d 932.
Since no leave to file an appeal is required under our law, and if an appeal is available from the District Court order heretofore mentioned, the time therefor has not expired, and by reason of our views expressed as to the other matters referred to in said petition, the same is denied and the proceedings ordered dismissed.
MR. JUSTICES ADAIR, DOYLE, CASTLES and JOHN C. HARRISON, concur.
|
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PER CURIAM.
The aplication for a writ of mandate is denied.
|
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DECISION
The application of the above-named defendant for a review of the sentence of four years, imposed on October 15, 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 desertion of minor children punishable by not more than 7 years imprisonment, yet received but a 4' year sentence with parole eligibity in June 1969, after being received October 16, 1968, although defendant originally was given a deferred imposition of sentence which defendant violated.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield.
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MR. CHIEF JUSTICE HARRISON:
Original petition for an alternative writ of mandamus brought pro se by Wilbert Thomas Arbuckle, an inmate of the United States Penitentiary at Leavenworth, Kansas.
It appearing that since the filing of the petition the relief sought has been granted by the district court, and by reason thereof this proceeding should be dismissed.
It is so ordered.
MR. JUSTICES ADAIR, ANGSTMAN and CASTLES concur.
|
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ME. JUSTICE JOHN C. HAEEISON
delivered the Opinion of the Court.
This appeal results from a judgment of the1 district court of the fifth judicial district, the Honorable Philip C. Duncan sitting without a jury.
Certain procedural matters must be set forth in order to understand the appellant’s issue of error. This case went to trial on the amended complaint of respondent which sought specific performance of the option provision of a lease and option agreement between respondent and appellant. The answer and cross-complaint of appellant originally filed claimed (1) no proper claim was stated; (2) the option was unenforceable because it was represented to the defendant to be effective only upon his (defendant’s) death; and (3) failure of consideration. The cross-complaint alleged purported fraudulent representations concerning the effectiveness of the option and seeks damages for such fraud. To this document was appended a demand for a jury trial.
The respondent moved to dismiss the answer and cross-complaint on the grounds of failure to state a claim for relief. Eespondent also moved tostrike the demand for a jury trial. The court struck from the cross-complaint the allegations referring to punishment by means of punitive damages and the demand for a jury trial.
The case went before the court, after the court’s order, as a case of specific performance with the defense that the fraud ■of plaintiff (respondent) had brought about the inclusion of an incomplete option provision in the lease and option agreement. It should be noted that no objection was made to the court’s orders on the pleadings, except to the denial of jury trial.
The sole issue before this Court is whether or not the trial court was correct in its ruling denying appellant’s request for a jury trial.
The facts of this case are simple. The respondent, George-Little, and his wife became acquainted with Joe Mackel, the appellant, shortly after the end of World War II. The Littles had been raised on a farm in Arkansas and had come to Montana to do farm work. Mr. Little had a seventh grade education. Joe Mackel owned a small ranch of 1,020 acres which came to him by inheritance from his parents; it had been in the family for some 50 years. Over the years the ranch had supported a cattle herd of from 50 to 100 head. Joe Mackel had lived some 50 years on the ranch and had attended school through the first year of high school. The Littles worked on a ranch adjoining the Mackel ranch and had become friends of Joe. After his parents’ death, Joe- hired the Littles to work for him which resulted in a strong friendship between the parties. In 1953 Joe leased the ranch to the Littles, who after some six months had to give up the lease due to a health condition of Mrs. Little, but there was no difficulty arising from this fact. When Joe- Mackel learned of the Littles’ problem, he voluntarily cancelled the lease and re-leased to another party. The Littles moved to Butte; Joe Mackel found work in that area and their friendship continued. In 1955 or 1956, Joe drew a will leaving the ranch property to the Littles. In 1959, when the lease ran out, Joe Mackel talked the Littles into returning to the ranch on a lease-option. At that time he was dissatisfied with the prior tenants who had let the property run down and expressed a desire to the Littles to-have someone on the ranch who would look after it.
The 1959 lease, for a period of 10 years, covered the 1,020-acres of land, plus 45 head of cows and 2 bulls. The lease also-contained an option to purchase the real property for $25,000. The respondent Littles testified that the option to purchase-was his idea and the only discussion he had with Mackel was. over the amount. He, Little, wanted it for $20,000 and Mackel wanted $25,000, which amount was put in to the lease. The rental was for one-third share of the increase of the livestock to the lessor.
The 1959 lease remained in full force and effect until 1964, at which time Mackel sold the cattle necessitating a reconsideration of rental payments. The testimony reveals that during this period, from 1959 to 1964, Joe Mackel became enamored with a woman whose fiscal demands caused a considerable decrease in his bank account bringing about the necessity to dispose of the cattle. Perhaps because of this rather costly affair, the friendship of the Littles and Mackel cooled.
At the time of the sale of the cattle in 1964, the parties to the lease discussed a new rental arrangement and Little went to an attorney who made a new lease; it contained two variations, one concerned the maintenance of certain old buildings, the other the rental which was set at $1,000 per year. Little took this lease to Galen, Montana, where the terms of the lease were gone over item by item between the two men and the lease was then signed by Mackel.
Sometime in 1964 or 1965, the respondent Little learned that the appellant wanted to sell the ranch so he made financial arrangements to borrow the needed money and in 1965 gave the appellant notice that he was exercising the option to purchase. "When the appellant refused to sell, this action was commenced. The appellant alleged he was tricked into the option to purchase for $25,000, that the ranch was worth more than that figure. On cross-examination the following testimony occurred:
“Q. Eeally, Joe, your only basic objection to going through with the option is that it just isn’t enough money at today’s prices, isn’t that it? A. Yes.”
With this procedural and fact background we will consider the one issue before us, the court’s failure to give Mackel a jury trial.
This action is one of specific performance and is one that onr Court handles under its equitable jurisdiction. It has long been recognized that specific performance of a contract is a matter of equitable cognizance. This Court held, in In re Bank’s Estate, 80 Mont. 159, 260 P. 128, that “The power to enforce specific performance of a contract is vested solely in courts having equitable jurisdiction; the remedy is purely equitable, as, at common law, the only remedy available to a party injured by a breach of contract was an action for damages.”
On the question of a jury trial for such equitable actions this Court has held: “It is well settled by the decisions of this court that in equity cases the judge may call a jury to his assistance if he chooses, but is not bound to do so. If he does, he is not bound by the findings, but may reject them in whole or in part and make findings of his own. Therefore he is not required to submit the whole case to the jury, but only such issues of fact as he may choose. Whether he adopts the one course or the other, the ultimate result is to be regarded as emanating from the judge, and its correctness is to be determined by a review of his action, and not that of the jury by the standard of counsel’s judgment as to what the jury ought to have been required to find.” Yellowstone National Bank v. McCullough et al., 51 Mont. 590, 154 P. 919. See also Moore v. Capitol Gas Corporation, 117 Mont. 148, 158 P.2d 302; Waite v. Waite, 143 Mont. 248, 389 P.2d 181.
Even here, where the appellant’s defense of fraud vel non is raised and the contention made that this is a legal defense, we find no jury trial is required for this Court held, in Merchants Fire Assur. Corp. of New York v. Watson, 104 Mont. 1, 64 P.2d 617, that “On the question of a right of trial by jury, it is a well-settled principle that when a court of equity takes jurisdiction of a controversy its jurisdiction is full and complete, and it may render final judgment in relation to all matters involved in and growing out of that controversy. * * *
“It is also held that a legal defense does not divest equity of jurisdiction. 35 C.J.175, § 54; Clark v. Baker, 6 Mont. 153, 9 P. 911; First National Bank [of Hardin] v. Hergert, 94 Mont. 197, 22 P.(2d) 169. And it is generally held that cross-complaints and counterclaims presenting legal issues do not deprive a court of equity jurisdiction.” See also Butler Brothers Development Co. v. Butler, 111 Mont. 329, 108 P.2d 1041; Thisted v. Country Club Tower Corp., 146 Mont. 87, 405 P.2d 432.
The trial court ruling being correct, its judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR and CASTLES, concur.
|
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MR. JUSTICE MORRISON
delivered the opinion of the Court.
Following a jury trial, defendant Willie James Johnson, Jr., was found guilty on December 29, 1980, of theft, a felony, in violation of section 45-6-301(l)(a), MCA, 1978. Pursuant to that verdict, the Eighteenth Judicial District Court issued a sentence and judgment on January 12, 1981, ordering defendant to serve ten years at the Montana State Prison, Deer Lodge, Montana, and designating defendant a non-dangerous offender. Defendant now appeals from that verdict, judgment and sentence. We affirm.
While traveling from California to Oklahoma to spend Christmas with his family, Johnson “hitched” a ride to Bozeman, Montana. He rented a room for two nights at the Baxter Hotel, at a cost of $10.00 per night. When he began his journey to Oklahoma, defendant had $200.00 After paying for his room in Bozeman, Johnson had $20.00.
On November 29, 1980, Johnson went to the Main Mall in Bozeman. He testified that he entered the Jensen Jewelry Store to look for a Black Hills gold ring to match the Black Hills gold pendant he was wearing. Upon noticing that it was time for him to meet a new acquaintance, Sherry, at the Woolco Store, defendant hurried out of Jensen’s.
When Sherry was not at Woolco, defendant stated that he left the mall and began to run toward the Baxter Hotel. While running, allegedly a common activity for defendant, he realized that a group of people were chasing him. He became scared and continued to run. At trial, defendant stated: “I seen all these white people with sticks running at me. You know, I thought, ‘Hey, what’s happening, am I in Mississippi or something’ . . . “ Defendant, a black man, was apprehended in a trailer park shortly after noticing his pursuers.
The prosecution presented several employees and customers of Jensen Jewelry Store as witnesses. Their testimonies were generally consistent, but varied greatly from that of defendant.
Lisa Pribsnic is a part-time clerk at Jensen’s. On November 29, 1980, she assisted a blonde woman looking at wedding rings. A black man, sitting next to the blonde woman, asked to see Black Hills gold rings to match the Black Hills gold pendant he was wearing. “He was tall, about six foot, black. He had string tied in his hair; very short, curly hair. He was wearing some sort of a vest. I don’t remember what color it was. He was very nervous. His eyes were red and they wouldn’t look directly at somebody. His speech was very slow.” The witness identified the defendant as the black man who was in the store and defendant’s pendant, State’s Exhibit No. 2, as being the pendant shown her by him.
Ms. Pribsnic stated that she returned all the rings she had been showing the two customers to their respective cases and locked the cases before going to the back room. When she returned, the black man was examining a store mailer. She left to gift wrap a package for another customer and the theft occurred.
According to her testimony, Ms. Pribsnic, while waiting on the blonde woman, had not entered the case from which the rings were stolen. She also stated that the lock on that case was malfunctioning. The automatic lock often did not work, thereby requiring a key in order to adequately lock the case.
Thomas H. Campbell and his wife were looking at cigarette lighters in the window of Jensen Jewelry Store around 1:30 P.M., November 29, 1980. As Mr. Campbell entered the store, he saw “a young black man behind and to the left of the counter” with “his hands in the display glass,” holding a tray of some sort. He did not see what, if anything, was in the tray. Mr. Campbell went to the main counter to seek a sales person, turned and saw the young black man “rapidly leaving the store.”
Although Campbell could not positively identify defendant as the young black man in Jensen’s, he described the man as follows: “He was young, black; as I recall he had something funny in his hair. It was pleated or braided or something like that and I think he was wearing a green jacket or garment of some kind.” He identified defendant’s vest as looking familiar to him, similar to what the black man in Jensen’s was wearing.
Donald Floth and his girlfriend, Sue Whiting, were in Jensen Jewelry Store on November 29, 1980. A man came over to them and started talking. According to Floth, “[h]e was tall, slim, black. He had a small beard, and he talked really different, slowly . . . He told me that he was going to make a ‘quick buck’ and that you had to do something to make a buck in this world.” Floth testified at trial:
“Q. Where was this man whom you saw at that point in time?
“A. He was at the far case against the wall, and he was looking over it with his rear end to the wall, looking over it.
“Q. And what did you see him do?
“A. I saw him take out a tray.
“Q. And what did you see him do after he took it out?
“A. I didn’t see him dump the tray, but I saw his wrist turn.
“Q. And what happened after his wrist turned?
“A. He put the case back in and closed the door.
“Q. Then what happened?
“A. Then he bundled up his gloves and his hat together and started to walk out. Meanwhile, my girlfriend and I were talking to the personnel.”
Later in his testimony, Floth further described the man.
“A. He was tall, black. He had a small beard. It wasn’t a bushy beard. It was tight and it was small, and—
“Q. Do you remember anything about his hair?
“A. Yeah. He had a piece of string hanging off it. It wasn’t tied in or anything, it was just hanging there.
“Q. Did he have — was he wearing any jewelry that you noticed?
“A. He had a pendant on. I noticed his vest and pants. He had baggy pants on, kind of a tweed.
“Q. Do you recall what kind of vest it was?
“A. It was green.
“Q. Do you recognize State’s Exhibit No. T’?
“A. Yeah.
((
“Q. What is it?
“A. It looks like the vest he was wearing.”
Mr. Froth was, however, unable to identify the State’s Exhibit No. “2” as the pendant worn by the man in the store.
Diane Murray Willard was the sales clerk to whom the theft was reported. After the report, she walked over to the case area, saw the empty tray and saw “a tall, thin, black guy. He had a maroon sweater and a green down vest and some string in his hair.” She identified the defendant as that man.
Next, Ms. Willard went to the assistant manager, Brad Siegel and told him of the theft. The suspect left the store rapidly while the two were talking. Mr. Siegel testified that upon hearing of the theft, he ran to the case, verified that the tray was empty and then ran out of the store after the suspect.
Mr. Siegel pursued the suspect down the mall corridor, across the parking lot, over the interstate and through a field. Siegel received assistance from four young men he passed during the chase. They apprehended the suspect in a trailer park where they then awaited the arrival of the police. Johnson was out of Siegel’s sight three times: when Siegel first gave chase; when Johnson rounded a corner in the mall; and while Siegel attempted to cross the interstate.
The police took Mr. Siegel’s statement, then placed defendant under arrest. When he was arrested, defendant was wearing a green vest, a Black Hills gold pendant and he had string in his hair. A pat-down search was conducted, but no rings were found in defendant’s possession. Later searches of the path of pursuit, the trailer park area, the roof of the mall, the trash from the mall and the police car in which defendant was transported produced nothing. The rings have never been found.
Based upon the above facts presented at trial, the defendant was found guilty of the theft of seven wedding ring sets from the Jensen Jewelry Store in the Main Mall, Boze-man, Montana. In appealing that conviction, defendant presents the following issues to this Court:
(1) Whether the evidence presented by the State was sufficient to sustain a conviction, namely:
(a) Whether the State adequately proved Jensen Jewelers owned the rings taken in the theft.
(b) Whether the State proved the defendant exercised unauthorized control over the property of another.
(2) Whether the District Court erred in giving Instruction No. 11 and in refusing to give defendant’s offered Instruc tion No. 2.
Defendant contends that the State did not adequately prove Jensen Jewelers to be the owner of the rings taken in the theft. This contention is founded upon Illinois law that includes the existence of a corporation as an element of the crime to be proven when theft from a corporation has been alleged.
An article at 88 A.L.R. 485 discusses the necessity of alleging and proving in a charge of theft that the owner of the stolen property, if a corporation, is incorporated. There are two views, the oldest being that followed by Illinois. The more modern view is that such allegation and proof is not necessary. We agree with the modern viewpoint.
In a theft charge, the identity of the owner of the stolen property has been considered essential for several reasons. The prosecution must show that the stolen property does not belong to the accused. Stewart v. State (Alaska 1968), 438 P.2d 387. The accused must be made fully aware of the charges so that he might prepare a full and adequate defense. State v. Morrow (Tenn.1975), 530 S.W.2d 60; Martin v. State (1950), 92 Okl.Cr. 182, 222 P.2d 534. The property must be adequately identified, including ownership, so as to protect the accused from any further prosecution involving the theft of that same property. State v. Morrow, supra. None of these reasons are served by proving the legal existence of the corporate owner. Martin v. State, supra; Stewart v. State, supra; State v. Hume (1950), 145 Me. 5, 70 A.2d 543; State v. Morrow, supra.
In Montana, proof of possession suffices to prove ownership for purposes of theft. Section 45-2-101(46), MCA; State v. Dolan (Mont.1980), 37 St.Rep. 1860, 620 P.2d 355. This is true whether an individual or a corporation is the owner of the property. Determining ownership by proving possession of property: (1) will adequately identify the property so as to prove that it does not belong to the accused; (2) allow the accused to prepare a full and adequate defense; and (3) prevent further theft charges against the accused regarding the same property.
The prosecution provided through the testimony of Michael Brad Siegel, as well as other store employees, that Jensen Jewelry Store was in possession of the wedding ring sets before they were stolen. Proof of possession is adequate in this context. See State v. Dolan, supra.
Defendant next contends that a conviction of theft cannot be sustained as the State never proved the defendant exercised unauthorized control over the rings. This contention is based on defendant’s assertion that the testimony never showed him to have been in actual possession of the wedding ring sets.
Although no witness actually saw the rings in the defendant’s possession, several employees and customers of Jensen Jewelry Store saw defendant behind the counter where the ring case was kept, with his hand inside the case where the rings were, holding the tray the rings were in and rapidly leaving the store shortly thereafter. The tray contained rings ten minutes prior to defendant’s exit. The tray was found to be empty immediately after his departure.
Instruction No. 8 was taken directly from section 45-2-101(39), MCA: “You are instructed that ‘obtains or exerts control’ includes but is not limited to the taking, carrying away, or sale, conveyance, or transfer of title to, interest in, or possession of property.” After applying the evidence presented at trial to the above instruction, the jury found the defendant to have obtained or exerted unauthorized control over the rings and found him guilty of theft. There is substantial credible evidence to support the jury’s findings and verdict. We will not overturn it. “Given a certain legal minimum of evidence, this Court will not substitute its judgment for that of the jury.” State v. Martinez (Mont.1980), 37 St.Rep. 982, 989, 613 P.2d 974, 980. See also State v. Pendergrass (Mont.1980), 37 St.Rep. 1370, 615 P.2d 201; and State v. Merseal (1974), 167 Mont. 409, 538 P.2d 1364.
The second issue raised in this appeal concerns the ad equacy of the jury instructions given by the District Court. Defendant first contends that the District Court erred by giving Instruction No. 11 rather than giving his offered Instruction No. 7. Instruction No. 11 states in statutory language: “ . . . [t]he term ‘deprive’ means to withhold property of another, to dispose of the property and use or deal with the property so as to make it unlikely that the owner will recover it.” Section 45-2-101(19) (d), MCA. Defendant proposed the definition of “deprive” found at 45-2-101(19)(a), MCA: “ ‘Deprive’ means to withhold property of another permanently.”
These definitions are alternative definitions. The one chosen to be used in this instance adequately defines the word “deprive” as it applies to these facts. Here, defendant denied asserting any control. There was no issue as to permanency. The Court properly gave Instruction No. 11 as opposed to Defendant’s offered Instruction No. 7.
Defendant also objects to the trial judge’s failure to give defendant’s offered Instruction No. 2: “You are instructed that ‘possession’ is the knowing control of anything for a sufficient time to be able to terminate control.” The trial judge chose instead to give Instruction No. 8 concerning the definition of “obtains or exerts control.” The definition of theft found in section 45-60-301(1) (a) does not refer to the “possession” of goods; rather, it refers to obtaining or exerting unauthorized control over goods. Therefore, it was proper for the trial judge to instruct the jury regarding “obtaining and exerting control” rather than “possession.”
This Court must look at jury instructions as a whole to determine if they fully and fairly present the applicable law of the case. State v. Farnes (1976), 171 Mont. 368, 375, 558 P.2d 472, 476; State v. Higley (Mont.1980), 37 St.Rep. 1942, 1953, 621 P.2d 1043, 1054. The instructions given to the jury in the instant case fully and fairly present the law of theft as it applies to defendant Johnson.
We affirm the judgment of the District Court.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEA concur.
|
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MR. JUSTICE MORRISON
delivered the opinion of the Court.
The Fourth Judicial District Court of Montana, Missoula County, issued an order September 16, 1981, dismissing ap pellants’ complaint against defendant, First National Bank of Nevada. The complaint was dismissed for lack of jurisdiction, pursuant to 12 United States Code section 94. Final judgment, pursuant to Montana Rule of Civil Procedure 54(b), was also issued in favor of First National Bank of Nevada. Appellants appeal that judgment. We affirm.
Hamelly International, Inc. (Hamelly), is engaged in the business of researching and developing agricultural products. Its corporate headquarters is in St. Ignatius, Lake County, Montana. The individual plaintiffs/appellants are directors, officers and stockholders of Hamelly. Their principal residences are also St. Ignatius, Montana.
Defendant/Respondent, First National Bank of Nevada (Bank), is a Nevada Bank with several branch offices. The branch office relevant to this case is located in Reno, Nevada. The Bank has no branch offices in Montana, nor does it have any agent or employee working in Montana. Defendant Bank of Nova Scotia is not involved in this appeal.
In anticipation of establishing a manufacturing plant in Nevada, Hamelly decided in July 1976 to start an account with a bank in Nevada. At the advice of non-bank associated friends, Hamelly’s principal executive officer approached the First National Bank of Nevada, Reno, and requested its acceptance of Hamelly’s checking and banking business. Bank agreed and accounts were established at the Bank’s Carson City, Nevada branch. That transaction occurred in the State of Nevada at the appellant’s initiative.
Hamelly maintained its checking acount with Bank from 1976 on into 1979. In the fall of 1978, Hamelly deposited in its checking account with Bank a $15,000 check drawn on the Bank of Nova Scotia. On November 11, 1978, without notice, Bank charged the Hamelly account for $2,452.50, based on the existing exchange rate between United States and Canadian dollars.
On December 15, 1978, Bank further charged Hamelly’s account for $12,735.64, the then value of the $15,000 check in United States dollars. The Bank of Nova Scotia had re turned the check to Bank as the payor’s acount had insufficient funds to cover the check. This charge was made more than two months after the check was initially deposited. The Uniform Commerical Code requires a drawee-bank to reject a check for insufficient funds within twenty-four hours. See section 30-4-210, MCA.
Hamelly filed a complaint in the Fourth Judicial District Court, Missoula County, Montana, on December 23, 1980, seeking general and punitive damages from both banks for the improper, unlawful charges against Hamelly’s account.
Bank, on January 30, 1981, moved the District Court to dismiss the complaint for lack of jurisdiction. Bank based its motion on 12 United States Code Section 94. It reads:
“Actions and proceedings against any association under this chapter may be had in any district or Territorial court of the United States held within the district in which such association may be established, or in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases.”
Bank contended that it was neither established nor located in Montana; therefore, jurisdiction did not lie in Montana.
Subsequently, Hamelly submitted a set of interrogatories to Bank regarding its business activities in Montana. A partial response was filed immediately prior to the April 20, 1981, hearing on the motion to dismiss. Affidavits from both parties were also presented prior to and at the hearing. On the basis of that evidence, the District Court dismissed Hamelly’s complaint for lack of jurisdiction.
Hamelly presents three contentions on appeal:
(1) That, because of conducting substantial business activities in Montana, Bank is either “located” in Montana pursuant to 12 United States Code Section 94 or, Bank waives its section 94 jurisdictional privilege.
(2) That the factual evidence submitted prior to and at the hearing was insufficient evidence on which to base an order to dismiss a complaint. Bank should be required to respond to Hamelly’s interrogatories prior to any jurisdic tional ruling.
(3) That 12 United States Code Section 94, as applied in the instant czase, unconstitutionally denies Hamelly its equal protection and due process rights.
Although written in permissive language, 12 United States Code section 94 is a mandatory statute. Mercantile National Bank v. Langdeau (1963), 371 U.S. 555, 562, 83 S.Ct. 520, 524, 9 L.Ed.2d 523, 529. A national bank is subject to jurisdiction only where it was established or where it is located. The United States Supreme Court, in Citizens and Southern National Bank v. Bougas (1977), 434 U.S. 35, 98 S.Ct. 88, 54 L.Ed.2d 218, construed the word “located,” as used in 12 United States Code Section 94, to mean wherever branch offices are found. Therefore, a national bank can now be sued in the jurisdiction where it was originally established, as well as in any jurisdiction containing a branch office.
First National Bank of Nevada was established in Nevada. No branch offices are located in Montana. Therefore, Bank is not subject to Montana jurisdiction pursuant to 12 United States Code Section 94.
A national bank may waive the jurisdiction privilege provided by 12 United States Code Section 94. In Montana, a waiver is a voluntary relinquishment of a known right. Rase v. Castle Mountain Ranch, Inc. (1981), 631 P.2d 680, 687, 38 St.Rep. 992, 999-1000. To constitute a waiver, the bank’s conduct must be “manifestly consistent with and indicative of an intent to relinquish voluntarily a particular right. . .” Buffum v. Chase National Bank (7th Cir. 1951), 192 F.2d 58, 61. No conduct by First National Bank of Nevada relevant to this case meets that test.
Bank at no time conducted a business in Montana. No agent or Bank went to Montana to solicit business. Any contact with Montana by Bank was through the United States Postal Service or by phone. The personal representative of Hamelly went to Nevada and personally initiated contact with Bank. The Bank never enlisted the aid of any Montana institution, law or process while dealing with Hamelly. There is absolutely no conduct by Bank to warrant a finding that Bank waived its 12 United States Code Section 94 jurisdictional privilege.
We held in Drum v. District Court (1976), 169 Mont. 494, 548 P.2d 1377, that the Chase Manhatten Bank of New York had failed to waive its jurisdictional privilege not to be sued in Montana. Chase personnel had solicited Drum’s business through letters to Montana and had come to Montana to finalize a loan to Drum. In that case, the New York bank’s Montana-based activities were substantially greater than those by Bank in the instant case. Yet, we held that no waiver had occurred.
To hold that Bank’s actions constituted a waiver of its jurisdictional privilege would be similar to granting Montana jurisdiction on the basis of the “minimal contacts” rule set for in International Shoe Co. v. Washington (1945), 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95. To do so would abrogate the National Bank Act’s jurisdictional statute as well as its purpose — to prevent “the untoward interruption of a national bank’s business that might result from compelled production of bank records for distant litigation”. Citizens and Southern National Bank v. Bougas, 434 U.S. at 44, 98 S.Ct. at 93.
Hamelly contends that without Bank’s responses to their interrogatories, there is insufficient evidence on which to dismiss Hamelly’s complaint for lack of jurisdiction. We disagree. The affidavits submitted to the District Court by both parties, together with the testimony presented at the hearing, is sufficient evidence on which to base a ruling of lack of jurisdiction. The Bank is not located in Montana. The Bank has not waived its 12 United States Code Section 94 jurisdictional privilege. Therefore, Montana has no jurisdiction. There remains no material issue of fact. Therefore, Bank need not further respond to Hamelly’s interrogatories.
Finally, Hamelly contends that its constitutional rights of due process and equal protection have been violated by the application of 12 United States Code Section 94 in this instance. The United States Supreme Court held in Citizens and Southern National Bank v. Langdeau, 434 U.S. at 41 that: “Unquestionably Congress had authority to prescribe the manner and circumstances under which [national] banks could sue or be sued in the courts.” As we stated in Drum v. District Court, 169 Mont. at 503, 548 P.2d 1377, “[w]hile we are not in sympathy with this legislation, we are compelled to follow it.” It is up to Congress, not us, to change this statute.
The order dismissing Hamelly’s complaint as it applied to First National Bank of Nevada is affirmed.
MR. CHIEF JUSTICE HASWELL and MR. JUSTICES HARRISON and DALY concur.
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MR. JUSTICE WEBER
delivered the opinion of the Court.
This appeal arises from the District Court’s granting at torney’s fees to Intervenors following a hearing to determine water rights, in the Thirteenth Judicial District, Yellowstone County. We reverse the District Court.
The sole issue on appeal is whether Intervenors (Waltons) are entitled to attorney’s fees from Relator (Wilson). Wilson and Waltons owned adjacent property in Yellowstone County. Waltons purchased their property in 1963, and in 1966 built a structure to impound water from an unnamed tributary (coulee) of Dry Creek to use as a stock water reservoir. They continued this use each year after their dam was built. In 1970 Wilson purchased land just up the coulee from the Walton land. In 1975, Wilson built a road across the coulee, cutting off virtually all of the flow to the Walton reservoir. He knew of the Walton dam at the time. He did not apply for a beneficial water use permit from the Department of Natural Resources and Conservation (DNRC), as required by the Montana Water Use Act of 1973, §89-880(2), R.C.M. 1947 (now sec. 85-2-302, MCA). Waltons’ protests to Wilson and Wilson’s lawyer, that the roadway blocked off the water they depended on to water their stock, were unavailing.
In fall of 1976, Waltons protested Wilson’s actions to the DNRC. A subsequent on-site inspection by the DNRC resulted in their informing Wilson he was in violation of the Montana Water Use Act and must obtain a beneficial use permit before appropriating water from the coulee, or he would be subject to misdemeanor charges. Wilson applied for such a permit in February of 1977; the application was noticed by publication. In May of 1977, Waltons filed timely objections to issuance of the permit and in October of 1977, filed timely amended objections.
On December 21, 1977, the DNRC, in an attempt to informally settle the dispute, sent the following letter:
“Dear Mr. Wilson:
“This is in reference to your Application No. 11761-s43Q and the objection of William and Marion Walton. A review of the application and objection shows that the watershed above the objector’s dam will yield approximately 15-20 acre-feet of water on an average year. The objector claims a prior water right for approximately 8 acre-feet for stock watering, which indicates the availability of appropriable water. It appears they have a valid use right to the maximum amount of water he has put to a beneficial use prior to July 1, 1973, as our records show no filed appropriation.
“Under the law we are required to ensure prior existing water rights will not be adversely affected and that the means of diversion or construction are adequate. We propose to issue your permit subject to the following conditions in order to do so.
“1. All prior existing water rights.
“2. Any final determination of existing water rights as provided by Montana law.
“3. The permittee shall install and maintain a drainage device not less than 12 inches in diameter, in the bottom center of said dam in order to satisfy prior existing water rights.
“4. The permittee shall submit to the Department his plans for the design of the emergency spillway and drainage device for approval before their construction and installation.
“A 10 year frequency 6 hour storm would cause a peak flow of 8 cfs. Your spillway and drainage device should be designed to pass a combined flow of at least that amount. As your dam as proposed will hold only one acre-foot, it would be probably overtopped without a spillway.
“Please notify us in writing within seven (7) days after receipt of this letter if you do not agree with our findings and proposal and request a hearing on your application. If we do not hear from you we will assume you do not request a hearing and issue your permit accordingly.” (Emphasis added.)
Subsequent exchanges between Wilson and the DNRC indicate Wilson’s feeling that the DNRC had already determined rights without a hearing. Wilson also argued that Waltons could not have established rights in diffuse surface water prior to 1973, because common law did not recognize such water as subject to appropriation. The DNRC responded that it had made no final determinations as to rights and that Wilson could challenge its preliminary findings by requesting a hearing.
On June 27, 1978, the DNRC notified the parties that hearing on Wilson’s application would be July 12, 1978. On July 7,1978, Wilson obtained an alternative writ of prohibition from the District Court ordering the DNRC to refrain from further proceeding on his application, for failure to hold its hearing within 60 days, as required under section 85-2-309, MCA. In November, 1978, with no objection from Wilson, Waltons were permitted to intervene. Both the DNRC and Waltons sought an injunction against the Wilson dam; Wilson and Waltons sought adjudication of their rights to the coulee water.
Following a June 1, 1979, hearing, the District Court granted the writ of prohibition; appeal from that decision was dismissed by this Court on the grounds that the District Court’s decision lacked finality.
After a trial without jury on July 29-30, 1980, the District Court granted injunctive relief against Wilson, holding that the coulee water was more than mere surface water; it was “water” within the meaning of the Water Use Act, and Waltons had a valid prior right to the water; the court awarded attorney’s fees and costs to Waltons; Wilson was awarded attorney’s fees against DNRC.
On December 23, 1980, Wilson moved to have the award of attorney’s fees to Waltons stricken, arguing that “there is no statutory, contractual or other basis upon which to base [the] award ...”
The District Court judge amended his findings and conclusions on December 29, 1980, to include the following:
“FINDINGS OF FACT
“26. The construction of the dam by the Relator was done in disregard of the Intervenors’ obvious prior rights.
“27. The construction of the dam and the litigation that ensued cost the Intervenors to seek legal counsel and to participate in litigation.
“28. It would be inequitable for the Intervenors, innocent as they were to any wrong doing, to bear the costs for attorneys fees in litigation.
“CONCLUSIONS OF LAW
“19. The court has inherent power under its equity jurisdiction to grant attorneys fees to the Intervenors against the Relator.”
Relator Wilson appeals.
On February 5, 1982, this Court, in response to written stipulation by Wilson and the DNRC, ordered that (1) the writ of prohibition be set aside; (2) the award to Wilson of attorney’s fees against the DNRC be vacated; (3) the DNRC’s appeal be dismissed; and (4) Wilson and the DNRC should each bear their own costs. Wilson has formally withdrawn the application for a beneficial water use permit for the coulee water and has ceased to impound the coulee water. The sole issue on appeal is whether the District Court erred in awarding attorney’s fees to the Waltons.
Waltons rely upon several statutes under which attorney’s fees may be awarded.
Section 85-2-125, MCA, provides:
“If a final decision of the department [DNRC] on an application for a permit is appealed to district court, the district court shall award the prevailing party reasonable attorney fees.”
Wilson points out that here there was no appeal, no final decision; there was not even a hearing by the DNRC regarding his application for a permit. The only DNRC decision was that Wilson would have to file for a permit before he could build an impoundment structure; that decision preceded his application for a permit and was not appealed. The DNRC hearing on the matter was precluded by the DNRC’s delay and Wilson’s writ of prohibition. Section 85-2-125, MCA, is not applicable here.
Waltons also rely upon section 27-1-317, MCA, which provides:
“For the breach of an obligation not arising from contract, the measure of damages, except where otherwise expressly provided by this code, is the amount which will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not.”
Waltons maintain that because Wilson’s wrongful acts forced them to bring an action in intervention to their detriment, section 27-1-317, MCA, is applicable. Wilson counters that section 27-1-317 has never been so broadly interpreted and to apply it here would extend the award of attorney’s fees to every prevailing personal injury claimant in a non-contract action.
The long-established rule in Montana is that, in the absence of some special agreement between the parties or statutory authorization, attorney’s fees are not recoverable by the successful litigant. Nikles v. Barnes (1969), 153 Mont. 113, 454 P.2d 608; Kintner v. Harr (1965), 146 Mont. 461, 408 P.2d 487. Clearly there was no agreement between the parties in the case at bar. But Waltons would have us find “statutory authorization” in section 27-1-317, MCA, above, and in the references made to that statute in First Security Bank of Bozeman v. Goddard (1979), 181 Mont. 407, 420, 593 P.2d 1040, 1047, and in McCarty v. Lincoln Green, Inc. (1980), Mont., 620 P.2d 1221, 1225, 37 St.Rep. 2007, 2011-2012. We do not find those cases applicable here. There is no specific mention of section 27-1-317, MCA, as applying to attorney’s fees in Goddard. In McCarty, although an award of “damages plus attorney’s fees” was challenged by appellant, this Court, in affirming, relied upon the statute in justifying the award of damages but never explicitly discussed attorney’s fees. Besides, both Goddard and McCarty involved actions in tort; no tort liability has been alleged or found in the case at bar. Both the general rule stated in Nikles, above, and section 27-1-317, have been around for some time, yet this Court has not ex plicitly applied it to expand the Nikles rule to support an award of attorney’s fees in this case.
Finally, and more in line with the findings and conclusions of the trial court, Waltons rely upon the relatively new line of case law in Montana establishing a narrow exception to the rule stated in Nikles, supra. This Court, in a number of recent cases, has recognized the lower court’s general equity power to make an injured party whole and held that, in some isolated cases, attorney’s fees could properly come within that power. Such an award is within the lower court’s discretion and will not be overturned absent a showing of abuse of discretion. Martin v. Randono (1981), Mont., 623 P.2d 959, 962, 38 St.Rep. 209, 212. Cf. Stickney v. State of Montana, County of Missoula (1981), Mont., 636 P.2d 860, 38 St.Rep. 1991; Joseph Russell Realty Company v. Kenneally (1980), Mont., 605 P.2d 1107, 37 St.Rep. 57; Holmstrom Land Co. v. Hunter (1979), Mont., 595 P.2d 360, 36 St.Rep. 926; Foy v. Anderson (1978), 176 Mont. 507, 580 P.2d 114; comment 40 Mont.L.Rev. 308 (1979).
In Joseph Russell Co. and Martin we affirmed the trial court’s refusal to award attorney’s fees, while recognizing its equitable power to do so. In Foy, Holmstrom and Stickney, we affirmed the trial court’s equitable award of attorney’s fees, where defendants, through no fault of their own, were forced to personally defend against a frivolous action.
Wilson argues that the Foy line of cases is not applicable here. In those cases, the defendants were made party to a frivolous action. It is true that Wilson did not sue Waltons; they voluntarily made themselves parties by intervening. But, at the time they intervened, Waltons had been deprived of the upper coulee water for nearly three years. Their requests for enough water to keep their stock pond full were ignored by Wilson and his attorney. Waltons’ 1976 complaint to the DNRC culminated two years later in the DNRC’s loss of jurisdiction over Wilson’s application for a permit to impound the coulee waters. The District Court would determine rights to those waters, an adjudication to which DNRC admittedly was not a real party in interest. Clearly, the only way the Waltons could hope to protect their interest in the coulee waters was to intervene.
We find there is room within the Foy exception for those who reasonably find it necessary to intervene in a frivolous action, although not technically forced to become parties.
Wilson argues that this was not a frivolous action, one so spurious as to bring it within the Foy exception. He maintains that there was a genuine controversy; that the law was such that he reasonably could have expected to prevail; that his position was supported by credible expert evidence; in short, that, although he did not prevail, the record clearly reflects a viable claim.
Wilson alleged throughout the litigation that the coulee water was “diffuse surface water,” and was not “water” within the definition of the Water Use Act. He also claimed that Waltons had no valid prior appropriation right to the coulee water because diffuse surface water, at common law, could be impounded by the person upon whose land it occurred, but was not a “water course” and was not subject to the law governing water courses. He emphasizes that he does not and need not challenge the merits of the District Court’s determinations with respect to these matters. He only must prove that his position in the litigation was not frivolous or spurious, and hence should not have been brought within the Foy exception. Let us consider Wilson’s arguments.
(A) Wilson argues that he believed “diffuse surface water” was not “water” within the meaning of the Water Use Act and hence believed the provisions of the Water Use Act did not apply to his stock water reservoir.
The Water Use Act of 1973, §89-867(1) R.C.M., 1947, (now section 85-2-102(14), MCA), originally defined “water” as “. . . all water of the state, surface or subsurface, regardless of its character or manner of occurrence, including geothermal water.” That definition was amended in 1977 to include “diffuse surface water.” The minutes of a meeting of the Senate Committee on Agriculture, Livestock and Irrigation (March 17, 1977) show that one DNRC official considered the inclusion an “important change”; another was satisfied that the amendment would force the Bureau of Land Management to obtain a water use permit for diffuse water. Wilson argues that this amendment was necessary to prevent confusion reasonably arising under the original definition, which was in effect when he impounded the coulee water.
Wilson’s confusion derived in part from the fact that diffuse surface water, at common law, was not subject to the same rules governing appropriation as were applied to water which flowed in a natural water course. Wilson relies upon Doney v. Beatty (1950), 124 Mont. 41, 220 P.2d 77, and authorities cited therein:
“As to such diffused waters the plaintiffs did not and they cannot make a valid appropriation for use on their lands located a number of miles below, and the defendants have the right to collect, capture and impound such diffused surface drainage while it is on their own lands and farms for use thereon.” (Emphasis added.) 124 Mont. at 50, 220 P.2d at 82.
Waltons maintain that Doney was effectively superceded by Midkiff v. Kincheloe (1953), 127 Mont. 324, 263 P.2d 976, wherein this Court upheld the prior right of a downstream user in a water rights dispute factually similar to this one, although the water was only rain and snow runoff in an otherwise dry creek. We point out that in Midkiff, the issue of whether diffuse surface water could be appropriated was not before the Court. The Court considered only the extent of the prior use, before the upstream user impounded the runoff waters. Furthermore, Justice Adair, in a strong dissent referred to the Doney rule, and clearly articulated the common law rule that an upstream user
“ . . . has the same right to impound, store and put to beneficial use these flood and waste waters while they are upon his lands as has the [downstream user] when they reach his holdings.
<<
“It is the general rule that diffused surface waters resulting directly from rain and melting snow may be collected, impounded and put to a reasonable beneficial use by the owner of the land on which they occur, so long as such waters remain on such owner’s land. In the event the landowner makes a reasonable use of waters resulting from rain and melting snow, and particularly of such as result from precipitation on his own land, such waters may be treated as ‘flood, seepage, and waste water’ of which he may make an independent appropriation under R.C.M. 1947, sec. 89-801, supra, by impounding them in a reservoir. Compare Doney v. Beatty, 124 Mont. 41, 220 Pac. (2d) 77.” 127 Mont. at 332-333, 263 P.2d at 980.
In light of the 1977 amendment of the definition of “water,” and the common law rules with regard to appropriation of diffuse surface water, we find that Wilson reasonably could have believed diffuse surface water was not subject to the provisions of the Water Use Act in 1975 when he built his road.
(B) Wilson argues that there was a genuine controversy as to whether the coulee water was diffuse surface water.
In Doney v. Beatty, supra, 124 Mont. at 51, 220 P.2d at 82, this Court contrasted a water course with diffuse surface waters:
“A water course in general has a definite channel as well as a flow of water while diffused surface waters are waters which, in their natural state, occur on the surface of the earth in places other than water courses or lakes or ponds. The diffused surface waters may originate from any natural source. They may be flowing, vagrantly over broad lateral areas or, occasionally for brief periods, in natural depressions, or they may be standing in bogs or marshes.
“The essential characteristics of diffused surface waters are that their flows are short-lived and that the waters are spread over the ground and not concentrated or confined in channel flows of legal watercourses nor yet concentrated or confined in bodies of water conforming to the definition of lakes or ponds.
“In 1 Kinney on Irrigation and Water Rights, 2d Ed., in discussing water courses in section 301, at page 486, the author quotes with approval the definition of a water course appearing in an Idaho case, as follows: ‘ “A water course is a stream of water flowing in a definite channel, having a bed and sides or banks, and discharging itself into some other stream or body of water. The flow need not be constant, but must be more than mere surface drainage occasioned by extraordinary causes; there must be substantial indications of the existence of a stream which is ordinarily a moving body of water”.’ Again in section 312, Kinney says: ‘But a water course does not include holes, gullies, or ravines in land, in which mere surface water from rain or melting snow at irregular periods, is discharged through them from a higher to a lower level, and which at other times are destitute of water. In the absence of a permanent source of water supply there can be no water course in its legal sense.’ Emphasis supplied. See: 1 Wiel on Water Rights in the Western States, 3d Ed., page 354, sec. 334; LeMunyon v. Gallatin Valley Railway Co., 60 Mont. 517, 199 P. 915.”
And in the dissent in Midkiff v. Kincheloe, supra, Justice Adair discussed the kind of water which could be appropriated by the land owner as long as it was on his lands. That water included “flood, seepage, and waste waters.” The water of the gully in Midkiff “[came] directly from either melting snows or heavy rains that have fallen upon the surface of the lands of Kincheloe and others lying within the drainage area of the gully,” and were unquestionably diffuse surface waters according to Justice Adair. We repeat that Justice Adair objected to the majority’s failure to consider and apply the existing law regarding water courses and diffuse surface waters, not their contrary application of it.
Here, it is true, the coulee also contained several devel oped springs above the Wilson dam. But the witnesses testified that the coulee was dry at least half the year, and that nearly all of the water in it was snowmelt and rain runoff. At least one expert (Wilson’s) testified that he could find no clearly-defined channel, and no evidence of moving water, although he spent many hours on the property. Another testified that the plants in the bottom of the coulee were of a type which could not grow in rapidly flowing water.
There is no definition of diffuse surface water in the Water Use Act. We find that Wilson reasonably relied upon the common law for a definition of diffuse surface water. That definition was similar enough to the waters of the coulee, that, given the supporting expert’s information, Wilson’s position was not without merit.
(C) Finally, Wilson argued that he reasonably believed Waltons had not obtained a prior right to the coulee water before the effective date of the Water Use Act, July 1,1973. The common law rule, which Wilson believed applied to the Waltons’ impoundment of the coulee waters, if they were diffuse surface waters, was that Waltons could only impound those runoff or waste waters which flowed on their own land. An upstream user could appropriate those diffuse surface waters occurring on his land. Therefore, Wilson believed that, as Waltons had not applied for a beneficial use permit under the Water Use Act after July 1, 1973, they had no superior claim to the coulee waters.
Wilson has not challenged the District Court’s determination that:
(1) Waltons had a prior right to the coulee waters;
(2) The coulee waters were more than mere surface waters; and
(3) The coulee waters were subject to the provisions of the Water Use Act.
He simply argues that considering the evidence before the District Court, that court improperly invoked its equity power in awarding attorney’s fees to the Waltons. We agree.
This Court will not overturn findings of fact of a District Court where they are supported by substantial, though conflicting evidence, unless there is a clear preponderance of evidence against such findings. The evidence is to be viewed in the light most favorable to the prevailing party. Cameron v. Cameron (1978), 179 Mont. 219, 587 P.2d 939.
Clearly, the District Court believed that Wilson had acted improperly in constructing his dam without first obtaining a beneficial use permit from the DNRC, in blocking off virtually all the Walton’s coulee water, knowing they had impounded it previously, and in prohibiting the hearing of his own petition for a beneficial use permit. But the Foy exception has been narrowly drawn, and is applicable only where the action into which the prevailing party has been forced is utterly without merit, or frivolous. In Foy, Holmstrom, and Stickney, the parties who were awarded attorney’s fees had been forced to defend themselves in actions which could not reasonably have been seen as viable, actions in which the court was used more as an instrument of harassment than as a means to settlement of a legitimate dispute.
Here the preponderance of evidence supports Wilson’s argument that his position, while it did not prevail, could not be classed as spurious. Wilson has presented persuasive arguments, discussed above, supporting the apparent viability of his claim. And we find that while Wilson indeed encroached upon prior rights of the Waltons, those rights were not “obvious prior rights,” and Wilson had a reasonable basis to believe that he might establish his right to capture snow melt and runoff while it was on his land. Therefore, to the extent that the District Court found Wilson’s encroachment to be upon an obvious prior right, we vacate its amended finding of fact No. 26. And because Wilson had a reasonable basis to believe that his cause might prevail, we find that his action was not frivolous or utterly without merit, the Foy exception is inapplicable, and the District Court erred in awarding attorney’s fees to the Waltons.
We remand this cause to the District Court for correction of its February 5, 1982, order insofar as it grants attorney’s fees to the Waltons.
MR. CHIEF JUSTICE HASWELL, and JUSTICES DALY, HARRISON, SHEA and MORRISON, and THE HONORABLE B. W. THOMAS, DISTRICT JUDGE, concur.
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
Plaintiff appeals from a judgment for defendants entered on findings of fact and conclusions of law after denial of a motion to alter and amend those findings and conclusions. The case was tried to the court in the sixth judicial district, county of Park, the Hon. Jack D. Shanstrom, presiding without a jury.
Plaintiff, Richard E. Lynch, brought the action to recover the sum of $10,000 which he had paid to defendants J. Paul Shields and Jessie I. Shields, husband and wife, allegedly as a good faith deposit in connection with negotiations to purchase the OTO ranch in Park County. Defendants answered denying the payment was simply a good faith deposit, but rather that it was payment for an option to purchase.
The issues on appeal are:
1. The district court erred in refusing to find that an alleged oral contract or option agreement was not enforceable by way of defense as it violated the statute of fraud.
2. The court erred in finding a legally binding contract existed between the parties.
To answer the issues, the facts are important.
One Bud Beilis, who had hunted on the Shields’ property, called Paul and Jessie Shields in March 1970 saying that he had a group of people interested in buying their ranch and asking them to wait before selling it. On April 23, 1970, plaintiff Lynch and Beilis flew to Montana for the purposes of viewing the ranch. Mr. Lynch described himself as a “stockbroker part time, a securities salesman”. Prior to his present position he worked as a merger consultant assisting in the sale of corporations, and before that as a securities salesman.
The Shields were willing to sell the entire ranch for $500,000r but at this first meeting they reached an agreement whereby they would retain a controlling interest in the ranch by selling 49% of the OTO Corporation, which would have to be expanded. The total price agreed upon was $245,000 for 49% interest, 29% of which was to be paid on delivery of the-stock, with $10,000 of that 29% figure to be paid on execution, of an instrument. The remainder was to be paid in equal yearly installments. They discussed the transaction day andl night for three days, agreeing on what Paul Shields considered to be all the aspects of the deal, and the details were never-changed. Jessie Shields testified this was the agreement reached and so did Lynch, who left Montana with the intention of consummating the deal if investors could be found. The Shields-had given him time to obtain investors.
Shortly after returning to Arizona, the interested men received the proposed “Agreement to Sell and Buy Capital Stock” and “Transactions Involved in Sale of Capital Stock, of OTO Ranch” which Lynch expected and which Lynch and Beilis had requested so that the sale could be consummated. The interest figure, for which a blank was left, was testified', to by Paul and Jessie Shields to have been decided on as 7%. The documents set out the terms as agreed upon and the Shields; believed that they were entirely satisfactory to the men because the Shields did not hear from them.
On May 11, 1970, Jessie Shields wrote a letter to Beilis; and Lynch in which she stated, because she had not heard from them in a long time, she supposed they were no longer interested. This letter prompted a call from Lynch followed by another visit so that the ranch could be shown to a prospective investor and on May 15 Lynch brought a doctor to-look over the ranch. When the doctor left after spending-only a short time on the ranch, Lynch stayed for two days-talking over his plans with the Shields as if the agreement, was soon to be sighed.
At this time Paul told Lynch that since so many people were interested in the ranch, Lynch would have to put up $10,000 for an option. Concerned about the possibility that ■enough investors could not be found, Paul did not want Lynch ■to have to forfeit the consideration for an option. He asked Lynch if he could raise the downpayment on his own because, ns Lynch testified Paul told him: “He said, well, if the rest of your syndicate doesn’t get together then the only way you ■can get that $10,000.00 back is if you put up the whole down-payment.” Paul Shields testified: “And I asked him, I said, well, Dick, to make this a deal you will have to put up an ■option of $10,000.00 to know that we have got something. We want to sell this deal and we can’t set here all summer and lose the people who were wanting to buy all of the time at "that time.” Jessie’s testimony agreed with Paul’s, and the parties agreed that on payment of the $10,000 the option would run until August 1, 1970.
Lynch testified that when he returned to Phoenix he “got nervous” and sent a check for $10,000 to the Shields. He "thought that this would give him the first chance to buy. He thought he had accomplished something by sending the ■check and the Shields would hold the deal for him. In the letter accompanying his check he wrote:
“This is only the first step in what should be a long and •friendly business relationship. We are all looking forward "to being stockholders in OTO Ranch # * * We will forward the agreement once we have legally established our (Bud’s and mine) power of attorney to sign for the group. I Ihope our check is sufficient for now.”
It seemed as though the signed Agreement was forthcoming.
The Shields refrained from showing the valuable ranch, and •■although many people inquired about its possible purchase, "they were told that it was not for sale. In a letter of May 29, 1970, Jessie Shields assured the two men that they were properly managing the ranch and wanted to keep them informed of what was happening. She asked if their wives could come np to give her ideas on fixing np the houses, which she was readying for them. On June 26, 1970, she again wrote and expressed concern for the management of the ranch in the future; since the Agreement would give the investors a 49% interest, there was much planning and trust which would be needed. In one part she wrote: “G-retchen left the house up on the OTO property just in perfect shape. We could rent it but didn’t think we had better till we found out what you boys wanted to do.” She ended by reminding Bud Beilis that he still had to pick out the house he wanted.
On July 31 or August 1, 1970, Richard Lynch called the Shields because the ninety days which the Shields had given them in April were up. Actually, the sixty day option period which the Shields had agreed to give in exchange for the $10,000 consideration had expired. When asked who he talked to on the telephone, he answered, “Jessie”. He did not recall any talk about forfeiting the $10,000. He then testified that he was not sure if it was Jessie he talked to, remarking that it had been three years since the conversation. When asked whether he was sure about what was said in the conversation, he answered, “not dead positive, no”. He did recall that the person he talked to, whoever it was, offered to allow him more time.
Paul and Jessie testified they were sure that Lynch had talked to Paul. Paul offered to extend the option to September 15, a month and a half, and Lynch said that he appreciated that very much and it might do the job. Shields wanted to be fair and did not want Lynch to have to forfeit his money if there was a chance of going through with the deal. They had an extension drawn up and after signing it, sent it to Richard Lynch. Lynch admitted receiving it.. The document was prepared simply to assure Lynch that he had until September 15 to return the signed Agreement.
The Shields never received a response from Lynch — they did not hear from him again until the law suit was filed — and assumed that the extension was acceptable to him. Defendants were prepared, from the time of the negotiations which took place in April 1970, to comply literally with the terms and conditions set forth in the agreement to sell and were ready, willing and able to convey the property as agreed.
The district court concluded:
“I.
“That as a result of the oral conversations between plaintiff and defendants on April 23rd and 24th, 1970, a written proposal in the form of a purchase agreement was prepared and delivered to plaintiff by mail on or about May 1, 1970, the receipt of which was acknowledged by the plaintiff, which document constituted an offer to sell.
“II.
“That on or about May 29th, 1970, plaintiff, following a meeting with defendants at defendants’ ranch in Park County, Montana, addressed a letter to defendants enclosing a check for $10,000.00 as part payment in acceptance of the offer and to obtain an option to hold the deal for him and his associates for a certain period of time, and acknowledged acceptance of the terms of the written contract by assuring defendants that the agreement would be forwarded as soon as power of attorney could be established, by which plaintiff implied that he was acting for himself as well as certain undisclosed associates.
“III.
“That defendants, Paul Shields and Jessie Shields, construed said $10,000.00 payment, together with written assurance by plaintiff that the agreement would be forwarded as soon as power of attorney could be established to sign the agreement, in the nature of an option to hold the deal for the plaintiff until he had perfected his power of attorney.
“IV.
“That the foregoing acts and conduct on the part of plaintiff and defendants, including part payment of $10,000.00, constitute an offer and acceptance, as defined in Section 87A-8-319, R.C.M.1947, under Subsections (a), (b), and (c) thereof, as well as Section 13-606-4, R.C.M.1947.
“V.
“That payment of the sum of $10,000.00 constitutes part performance, which removed said transaction from the Statute of Frauds, and placed an obligation upon the defendants in the nature of an option to hold the deal for the plaintiff, and that the defendants did so.
“VI.
“That by reason of the failure of the plaintiff to comply with the agreement in the nature of an option within the agreed time or within a reasonable time, plaintiff forfeited his right to reclaim the consideration paid by him for the option to consummate said purchase within a certain period of time or within a reasonable time.”
Referring now to the issues raised. Insofar as the statute of frauds is concerned, under sections 13-606(4), 93-1401-7, 74-203, or 87A-8-319, R.C.M.1947, it is clear that a fully executed option contract was fully performed and outside the statutes enumerated. Appellant Lynch does not dispute this general statement but argues that the evidence was insufficient to establish the existence of an option agreement.
By our recitation of the facts here and our quotation of the trial court’s conclusions, we find there was sufficient evidence to establish the option agreement as well as to show that there was full performance.
The parties had discussed and agreed upon all the essential terms of the sale, most of which were incorporated into the two instruments. The Shields had an offer which they held open for an entire month. On Lynch’s visit to the ranch on May 23, 1970, Paul informed him that some payment would be necessary to hold the deal any longer, whereupon the two agreed on $10,000. Returning to Phoenix, Lynch sent the check and a letter dated May 29, 1970 in which, he wrote “We will forward the agreement once we have legally established our (Bud’s and mine) power of attorney to sign for the group. I hope our cheek is sufficient for now.” In other words, Lynch was buying and received time. The Shields considered themselves bound and held the property off the market.
These transactions created an option contract as the trial court found. In Petersen Sheep and Cattle Co. v. Moss, 155 Mont. 311, 471 P.2d 546, an option was created by payment of consideration on an agreement to “tie up the property”.
Finding substantial evidence to support the findings of the trial court, and finding no merit in the issues raised on appeal, we affirm the judgment.
ME. CHIEF JUSTICE JAMES T. HAEBISON and ME. JUSTICES JOHN C. HAEBISON, DALY and HASWELL concur.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
In this cause, the relator, H. Evan Roberts, filed a petition to enjoin the respondents, the State Board of Equalization of the State of Montana, the members of said Board, Ravalli County, Montana, the County Assessor and the County Treasurer of Ravalli County, from assessing the net proceeds of the relator’s mining operations for the year 1959 by combining the calculated net proceeds of said mining operations of 1958 with the net proceeds of said mining operations of 1959 and then dividing by two. This court determined that it was proper for it to take original jurisdiction in this cause, and issued an order to show cause directing the respondents to appear before the court on September 7, 1960, and show cause why they should not be permanently enjoined and restrained from assessing relator’s net proceeds for the year 1959 in an amount of more than $298,426.70 or from collecting or attempting to collect any net proceeds taxes from relator based upon an assessment in excess of $298,426.70.
The facts of this ease are not in issue. Briefly, they can be stated as follows:
By section 1 of Chapter 181, Montana Session Laws of 1959 (approved March 7, 1959), the State Legislature amended section 84-5408, R.C.M.1947, relating to the taxation of net proceeds of mining property. Insofar as important in the consideration of the instant case, the amended law reads:
“On or before the first day of July in each year the state board of equalization shall transmit to the county assessor of each county in which such mines and mining claims are situated, the valuation of the net proceeds of such mines and mining claims for the purpose of taxation, as the same have been determined and fixed by such state board of equalization. The said valuation for the purpose of taxation shall he an amount equal to the average net proceeds from such mime for the five calendar years next preceding, or for as many years next preceding as the mine has produced gross yield, or for as many years nexl preceding as this act has been in effect, whichever is less. The average net proceeds for valuation shall be computed by dividing the total net proceeds for such period by the number of years for which such net proceeds were taken into account. In determining net proceeds of each individual year for averaging to determine valuation for purposes .of taxation, the actual annual net proceeds as defined in section 84-5403 of the Revised Codes of Montana, 1947, including losses, if any, from such mines and mining claims shall be taken for each year rather than? the average valuation for such year. '* * *” (The new matter which was added by the amendment is italicized.)
This cause arises out of the above-quoted section, as amended. The relator operates a fluorspar mine in Ravalli County, and so operated in the calendar year 1958 that in 1959 there was assessed on the 1958 production net proceeds of $1,057,695.88. The tax on this assessment was paid. In the calendar year 1959 the net proceeds of realtor’s operation, calculated by the State Board of Equalization under section 84-5403, as amended, was the sum of $298,426.70. Over the protest of the relator, the State Board of Equalization assessed the 1959 net proceeds at $678,061.30, and forwarded this assessment to the County Assessor of Ravalli County. This assessment was calculated by taking the net proceeds for 1958 of $1,057,695.88 and adding the net proceeds for 1959 of $298,426.70 and dividing the result by two in attempted compliance with section 84-5408, as amended.
The relator contends that the attempt to assess his net proceeds in the amount of $678,061.30 is invalid because section 84-5408, as amended, is unconstitutional in that it violates Article XII, §§ 1, 3, and 11, of the Montana Constitution.
Article XII, § 3, of the Montana Constitution provides:
‘ ‘ * * * and the aovnual net proceeds of all mines and mining claims shall be taxed as provided by law.” Emphasis supplied.
Relator argues that a tax on an average of annual net proceeds, as provided by the statute in question, is not a tax on “annual net proceeds” and therefore not within the purview of this constitutional provision. We conclude that this argument has merit.
It can be demonstrated that taxes levied on the basis of averages will not produce the same amount of money as taxes levied on “annual net proceeds”. Let us assume that the production of a mine results in actual annual net proceeds as follows, and determine what the average annual net proceeds will be under the same circumstances:
Actual Average
1959 $10,000 $10,000
1960 5,000 7,500
1961 6,000 7,000
1962 7,000 7,000
1963 8,000 7,200
Total Assessed Values $36,000 $38,700
Thus, over a five-year period the revenue produced on annual net proceeds is based upon an assessment of $36,000 while an average of the annual net proceeds for as many years produces revenue on the basis of an assessment of $38,700. The extent to which the law departs from annual net proceeds is even more graphically illustrated if we take the same total production for five years, but put the year of heavy production last. Thus, if the year of heavy production is in 1963, the picture is this:
Actual Average
1959 $ 5,000 $ 5,000
1960 6,000 5,500
1961 7,000 6,000
1962 8,000 6,500
1963 10,000 7,200
Total Assessed Values $36,000 $30,200
If we take into account losses, for which section 84-5408, as amended, provides, the law can be demonstrated to depart even more from a tax on “annual net proceeds” as follows:
Net Proceeds Actual Average
1959 —$10,000 .......... ............
1960 + 5,000 5,000 ...
1961 -f 6,000 6,000 333.33
1962 4- 7,000 7,000 2,000.00
1963 + 8,000 8,000 3,200.00
Total Assessed Values $26,000 $5,533.33
Since the law permits consideration of losses it can be seen that there could be a loss of revenue to the state and there will be an even greater departure from “annual net proceeds”.
We conclude that this average of annual net proceeds, as provided by section 84-5408, as amended, is not the same as the “annual net proceeds” provided in Article XII, § 3, of the Montana Constitution and therefore that the law is unconstitutional.
Because of our conclusion, the other constitutional questions need not be considered.
Relator also contends that section 84-5408, as amended, was misconstrued by the respondents in that they took into consideration the annual net proceeds for the year 1958, in determining the amount of the relator’s tax for the year 1959 and the statute was approved on March 7, 1959. Because of the disposition of this cause on the constitutional question involved, we find it unnecessary to consider this additional ground urged by the relator.
For the above-stated reason it is ordered that the respondents be permanently enjoined and restrained from assessing relator’s net proceeds for the year 1959 in an amount of more than $298,-426.70 or from collecting or attempting to collect any net proceeds taxes from relator based upon an assessment in excess of $298,426.70 for that year.
MR. CHIEF JUSTICE HARRISON, MR. JUSTICE ANGSTMAN and THE HONORABLE VICTOR H. FALL, District Judge, sitting for MR. JUSTICE BOTTOMLY, concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Plaintiff appeals from a jury verdict in favor of defendant V.F.W. Club and from orders of the District Court granting directed verdicts in favor of defendants City of Bozeman & The Frater nal Order of Eagles No. 326 (Eagles) in plaintiff’s suit for the death of his daughter.
In the early morning hours of June 7, 1975, Mary Folda, aged 17, and her friend, Cindy Williams, drowned in Bozeman Creek, within the City of Bozeman, Montana.
Earlier in the evening Cindy had pickup up Mary at her parents’ home in Belgrade and had driven into Bozeman. Friends of Mary saw her in the Arcade Bar sometime between 8:00 and 9:00 p.m. and later on at the bar run by The Fraternal Order of Eagles No. 326. About 10:30 or 11:00 p.m. Randy Short and his fiance, Eileen Richey, came into the V.F.W. Club and saw Mary there drinking tequillas with beer chasers.
Mary stayed at the V.F.W. continuing to drink until about 1:00 or 1:30 a. m. By then she was in an extremely intoxicated condition and unable to leave the bar on her own. With the help of Cindy and two other acquaintances, Sherry Pierce and Pam Barnes, Mary left the V.F.W. through its rear door and headed through the back alley for a public parking lot some 100 feet away.
The V.F.W. was located about 30 feet north of the alley. To the east of the V.F.W. and south of the alley was the parking lot to which Mary was headed. The parking lot, which was used by patrons of several bars and other businesses in the area, was owned by the Eagles and the City of Bozeman. The portion immediately adjacent to the alley was owned by the Eagles and the portion south of that was owned by the City. The parking lot was bordered the entire length of its west side by Bozeman Creek, which at that time of the year was in flood stage. The alley crossed Bozeman Creek by means of a bridge.
When Mary reached the parking lot, she ran for the creek. Cindy and the others pulled her out and Pam then brought Cindy’s car to the parking lot. After the girls put Mary into the back seat of Cindy’s car, Cindy assured Sherry and Pam that she could get Mary to her apartment all right.
When Sherry and Pam left, Cindy was sitting in the front seat of her car and Mary was in the back seat. Approximately twenty min utes later Mary ended up in the creek again. Cindy apparently went after her to try and save her, but was unable to do so. Both girls drowned. Mary’s body was recovered a few days later several miles downstream. No witness appeared at trial who saw what happened between the time Mary was in Cindy’s car and the time she drowned nor were any eyewitnesses to the incident identified at trial.
On December 19, 1975, Stanley J. Folda, Mary’s father and the personal representative of her estate, filed suit against the City of Bozeman (City) and the V.F.W. Club. In an amended complaint he added the Eagles as a party defendant. The father alleged in his amended complaint: that defendant V.F.W. Club negligently permitted Mary Folda to leave the Club in an intoxicated condition through an entrance located in a position such that Mary fell into Bozeman Creek while it was in flood stage; that defendant City failed to maintain conditions sufficient to protect Mary from inadvertently stepping into Bozeman Creek at the parking lot; and that defendant Eagles negligently maintained its portion of the parking lot in such a condition that persons entitled to occupy it were readily exposed to the hazards existing in connection with Bozeman Creek. He sought damages against each of the defendants for the loss to Mary’s heirs of her comfort, advice, and society and for Mary’s personal loss including pain and suffering. The pretrial order added an additional claim against defendant V.F.W. alleging that it negligently sold and served intoxicating liquor to Mary in violation of section 4-3-306(1)(a), R.C.M.1947.
After plaintiff and defendants had rested their cases, defendant City and defendant Eagles moved for directed verdicts in their favor on the following grounds: (1) Plaintiff failed to prove that Mary Folda entered Bozeman Creek from land that either defendant owned; (2) neither defendant had a duty to fence, barricade or otherwise cover Bozeman Creek where it bordered the parking lot; (3) Mary Folda was contributorily negligent; and (4) Mary Folda assumed the risk of Bozeman Creek. The District Court granted these motions, but denied a subsequent motion for a directed ver diet by defendant V.F.W. Club. The jury rendered its verdict in favor of defendant V.F.W. Club.
Plaintiff raises three issues on appeal:
1. Error in excluding certain testimony;
2. Error in granting directed verdicts for defendants City and Eagles; and
3. Sufficiency of the evidence to support the jury verdict in favor of defendant V.F.W. Club.
Plaintiff’s first issue for review relates to the District Court’s sustaining objections to questions by plaintiff’s counsel to two witnesses concerning the approximate location at which the deceased Mary Folda entered Bozeman Creek. In the agreed facts in the pretrial order, the parties stipulated that Mary Folda drowned in Bozeman Creek where it runs along the west side of the parking lot in question. Through his questions to plaintiff, Stanley Folda, and to Officer James Stanley, one of the investigating officers, plaintiff’s counsel attempted to establish whether Mary Folda entered the creek from land owned by the Eagles or land owned by the City. Because neither Stanley Folda or Officer Stanley had observed Mary Folda enter the creek, the District Court sustained defendants’ objections to these questions on the grounds of hearsay.
Plaintiff contends’that the District Court improperly sustained objections to these questions and that Folda’s and Stanley’s testimony as to the approximate location where Mary Folda entered Bozeman Creek was admissible under either the “present sense impression” exception to the hearsay rule, citing Sellers v. Montana-Dakota Power Co. (1935), 99 Mont. 39, 55-6, 41 P.2d 44, or the “res gestae” rule, citing State v. Newman (1973), 162 Mont. 450, 457-58, 513 P.2d 258. We disagree.
Testimony as to present sense impressions of a declarant is allowed as an exception to the hearsay rule upon the principle that the declarations were made while the mind of the declarant was laboring under the excitement aroused by the incident before there was time to reflect and fabricate, and hence the solemnity of an oath is not necessary to give the declaration probative value. Sellers, 99 Mont. at 56, 41 P.2d 44. The statutory basis of the res gestae rule is section 93-401-7, R.C.M.1947:
“Where, also, the declaration, act, or omission forms part of a transaction, which is itself the fact in dispute, or evidence of that fact, such declaration, act, or omission is evidence, as part of the transaction.”
Res gestae statements must be spontaneous and substantially contemporaneous with the injury causing event. Newman, 162 Mont. at 458, 513 P.2d 258.
Here we are dealing with testimony from people who were not present at the time of the accident and who attempted to testify to the approximate location where Mary Folda entered Bozeman Creek based upon what they heard from other persons. Stanley Folda’s knowledge of where his daughter entered the creek was based upon what the Bozeman police had told him. He was not even certain though which police officer told him the alleged location where .his daughter entered the creek. Officer Stanley was not an eye witness to the accident, but received his information concerning the accident from other people who allegedly saw it. These other people were never identified nor were they produced at trial. In light of these facts we find the cases plaintiff cites inapplicable. We do not know who made the statements upon which Stanley Folda and Officer Stanley rely, nor do we know when or under what circumstances they were made. We see no way to insure their veracity.
Plaintiff argues that we should adopt the position of Dean McCormick, who advocated admitting complete officers’ investigative reports as an exception to the hearsay rule. McCormick, Can the Courts Make Wider Use of Reports of Official Investigations? 42 Iowa L.Rev. 363 (1957). McCormick advocated admitting these records because of time and reliability factors. The investigating officer usually comes on the scene as early as it is feasible to get there and interviews witnesses before they have been swayed by the parties. Additionally, the witnesses often have only a dim recollection of the event by the time of trial. McCormick, 42 Iowa L.Rev. at 364-65.
Plaintiff’s reliance upon McCormick’s position is misplaced. Officer Stanley’s investigative report was introduced at trial without objection. It contained no statements from alleged eyewitnesses to the incident as to where Mary Folda entered Bozeman Creek. Any written statements that may have been made by eyewitnesses were never presented at trial. For these reasons we conclude the District Court was correct in sustaining objections to this testimony by Stanley Folda and Officer Stanley.
Plaintiff’s second issue for review relates to the directed verdicts which the District Court granted in favor of defendants City and Eagles. Plaintiff argues that the City and the Eagles as owners of the parking lot owed a duty to the public and to Mary Folda to prevent “easy access” into Bozeman Creek. He contends that they had a duty either to place barricades or to provide warning of a dangerous place adjoining the parking lot. Consequently, he concludes the District Court erred in granting directed verdicts in favor of these defendants.
Defendants City and Eagles argue that there is neither a statute nor a city ordinance which imposes such a duty upon them; that a landowner’s duty is simply to warn of hidden or lurking dangers; and that the landowner is not an insurer against all accidents, citing Dunham v. Southside National Bank (1976), 169 Mont. 466, 548 P.2d 1383; and Uhl v. Abrahams (1972), 160 Mont. 426, 503 P.2d 26. They conclude the District Court properly granted them directed verdicts. We agree.
The landowner is entitled to assume that an invitee will see and observe that which would be obvious through reasonably expected use of an ordinary person’s senses. There is no duty to give the invitee notice of an obvious danger. Demaree v. Safeway Stores, Inc. (1973), 162 Mont. 47, 52, 508 P.2d 570, 574. Bozeman Creek is a natural stream which runs through the City of Bozeman. At the time of the accident the creek was in flood stage and almost overflowing. The danger of the creek at this time of year was an obvious one. Accordingly, defendants City and Eagles were under no duty to warn Mary Folda of this danger.
Plaintiff argues that we should follow the rulings of this Court in Tiddy v. City of Butte (1937), 104 Mont. 202, 210, 65 P.2d 605, and Ledbetter v. City of Great Falls (1949), 123 Mont. 270, 275, 213 P.2d 246, that a city has a duty to keep its public streets and walks in a reasonably safe condition for travel and that this duty extends to dangerous conditions near the sidewalks. In Tiddy the plaintiff stumbled over a defect in a sidewalk one night and fell into an excavation adjoining the sidewalk. No warning or barricade was posted at that point. The defendant city was held liable. In Ledbetter the plaintiff was seriously injured when he fell into an excavation one night which had been dug by a licensee of the city working on a water main. The excavation was not barricaded nor were there any warning lights. This Court overruled the defendant city’s demurrer to plaintiff’s complaint.
Because Tiddy and Ledbetter dealt with the duties a city owes to the public to keep its streets and sidewalks in safe condition, we hold that they are not applicable to defendant Eagles, a private landowner. Additionally, because those cases concern defects or obstructions which are caused by a city and which rendered a sidewalk or street unsafe, they are distinguishable from the instant situation. Here we are not dealing with a defect or obstruction, but with a natural condition which constituted an open and obvious danger. The City had no duty to warn Mary Folda of such a danger.
Plaintiff urges us to adopt the position of the California courts which hold that under certain circumstances a natural condition may, nevertheless constitute a dangerous or defective condition permitting the imposition of liability, citing Hawk v. City of Newport Beach (1956), 46 Cal.2d 213, 293 P.2d 48 and Knight v. Kaiser Company (Cal.Dist.Ct. of App. 1956), 305 P.2d 248. T)hese cases are distinguishable. The Hawk decision was based upon a statute which imposed liability upon a local agency for injuries to persons or property resulting from the dangerous or defective condition of public property if the legislative body had notice of the condition and failed to act upon it within a reasonable time. Hark, 293 P.2d at 49. Plaintiff has now shown that Montana has such a statute. In Knight the plaintiff sued the defendant upon a theory of attractive nuisance when defendant’s sand pile, upon which young children often played, caved in and asphyxiated plaintiff’s 10 year old child. The appellate court held plaintiff’s complaint stated a cause of action against defendant. The Supreme Court of California reversed the appellate court holding that a sand pile did not constitute an attractive nuisance. Knight v. Kaiser Company (1957), 48 Cal.2d 778, 312 P.2d 1089.
We hold that under the undisputed facts in this case the District Court properly granted directed verdicts to defendants City and Eagles.
Plaintiff’s final issue for review relates to the sufficiency of the evidence to support the jury verdict in favor of defendant V.F.W. Club. Plaintiff contends that by V.F.W.’s serving liquor to Mary Folda, a minor, and by its continuing to serve her liquor while she was in an intoxicated condition, defendant V.F.W. violated sections 4-6-103 and 104, R.C.M.1947; that in so violating these statutes defendant V.F.W. was negligent per se; and that Mary Folda entered Bozeman Creek and thereby drowned because of her intoxicated condition. Plaintiff argues that defendant V.F.W. should be held liable on this basis and that there is no evidence to show that Mary Folda was contributorily negligent.
Defendant V.F.W. counters that the evidence is sufficient to support the jury’s verdict under two approaches: (1) that defendant V.F.W. was not negligent, or (2) that Mary Folda was contributorily negligent. In our view the evidence supports a finding that Mary Folda was contributorily negligent and therefore holds that plaintiff is precluded from recovering against any of the defendants.
At the time of this accident the rule that contributory negligence precluded any recovery against a defendant was still in effect. See Dunham v. Southside National Bank (1976), 169 Mont. 466, 548 P.2d 1383. The evidence shows that Mary Folda began drinking early in the evening of June 6, 1975; that she went to the Arcade Bar and the Eagles Bar before ending up at the V.F.W. Club; that Mary Folda was extremely intoxicated by 10:30 or 11:00 p. m. when Sandy Short and Eileen Richey arrived at the V.F.W.; that she continued to drink until she left the V.F.W. between 1:00 and 1:30 a.m.; that she could not leave the V.F.W. under her own power; that on the way to the parking lot she ran into Bozeman Creek once and had to be pulled out by her friends; that she was then placed in the back seat of a car; and that someway (which was never explained at trial) she ended up in the creek again 20 minutes after her first entry and was thereby drowned. Voluntary intoxication will not excuse the degree of care that a person must take for his or her own safety. Biddle v. Mazzocco (1955), 204 Or. 547, 284 P.2d 364, 369. We think the evidence supports a conclusion that Mary Folda voluntarily became intoxicated, that she disregarded her duty to use due care for her own safety, and that this was a proximate cause of her death.
Judgment affirmed.
MR. JUSTICES SHEA, DALY and SHEEHY concur.
MR. CHIEF JUSTICE HASWELL, deeming himself disqualified did not participate in this cause.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
The parties to this appeal were married in Kalispell, Montana, on August 26, 1960. Thereafter, the parties divorced, but subsequently reconciled their differences and were remarried in Elko, Nevada, on October 12, 1965. During the second marriage, respondent Allen W. Grenfell was employed by Intermountain Transportation Company as a bus driver, initially on a part-time basis and then working full time. During the marriage, appellant Lillian Grenfell worked part time as a beautician and the remaining time she worked around the family home.
During the marriage, the parties bought approximately 80 acres of ground near Stevensville, Montana, and some property located on Georgetown Lake in Deer Lodge County, Montana. They also purchased various items of farming equipment, some cattle, a Ford pickup truck, a Datsun pickup truck, and a Ford station wagon. Upon purchasing this property, the parties formed the A/T Corporation, and this property was placed under the ownership of the corporation.
The parties worked the assets of the corporation basically as a ranch-type corporation until their separation in April 1976. Until that time, respondent was the president and appellant also held an office in the corporation.
Because of irreconcilable differences, the parties separated in April 1976. Appellant moved from the family home, a leased ranch property near Cardwell, Montana.
At the time of the separation, there were two minor children, Darrell and Mia Grenfell. When appellant left the family home at Cardwell, she took the two children with her and moved near her parents in Anaconda, Montana. At this time appellant was receiving social security disability benefits for herself and the two minor children; received a settlement check from a casualty claim and a personal injury claim; received- both state and federal income tax checks; and was being paid the sum of $300 per month by respondent as a reasonable amount of support for her and the children.
After separating from respondent, appellant and her daughter from a previous marriage took an extensive vacation to Hawaii. Additionally, in a two-week period approximately a month to six weeks after the separation, appellant charged various items to respondent in the total sum of $3,806.92.
After several months of negotiations, the matter was heard on December 3, 1976. At the conclusion of the hearing, the court in-' structed the parties to prepare an inventory of the assets of the ranch corporation. This was, apparently, accomplished but was not included in the record in any detail. After additional evidence and testimony was entered, the court entered its original findings of fact, conclusions of law, and decree of dissolution of marriage on March 3, 1977.
Thereafter, appellant moved the court for amendment of the findings of fact and conclusions of law. This motion was heard and appellant was allowed to present further testimony. The court entered its modified findings of fact and conclusions of law and its final decree of dissolution on July 28, 1977.
In its decree the District Court required respondent, during the minority of the children, to pay $375 per month for maintenance of the home of and support for the minor children and their mother. The District Court also required appellant to turn over to respondent certain shares of her stock in the family corporation, A/T Corporation. Appellant appeals from these final modified findings of fact and conclusions of law.
The issues raised are:
1. Did the District Court err in its award for support and maintenance?
2. Did the District Court err in distributing the property of the parties acquired during the marriage?
Before discussing the issues, we must decide a preliminary matter. Appellant contends the District Court could not decide the issue of dividing the corporate stock of A/T Corporation because the parties had agreed that such issue would not be decided in this matter. Respondent and the District Court both state that they were not a party to such an agreement. Also, appellant’s petition for dissolution of marriage contains the request that the District Court divide the property of the parties and assign their obligations. Therefore, appellant’s contention in this regard is without merit.
The standard for reviewing maintenance and child support awards is well settled in Montana. The award made by the District Court will not be disturbed on appeal unless there has been a clear abuse of discretion resulting in substantial injustice. In re Marriage of Brown (1978), 179 Mont. 417, 587, P.2d 361, 367. The District Court, in making its maintenance and child support awards, must consider the items and factors set out in sections 48-322 and 48-323, R.C.M. 1947, now sections 40-4-203 and 40-4-204 MCA. The record here reveals that the District Court heard testimony concerning the income of the parties, the standard of living of the family before the separation, and other relevant factors. We cannot conclude that the District Court erred in awarding $375 per month for the maintenance of the home and for support of the minor children. Therefore, that portion of the judgment is affirmed.
We note, however, that the District Court, after setting the amount of the award for maintenance and support, stated: “This will give the father of the children an opportunity over a four to five year period of liquidating the debts Mrs. Grenfell showered on him of $5,798.92.” Apparently, the award for maintenance and support was reduced by the District Court because of such debts. Such a reduction is within the court’s discretion.
The standard of review recited above as to the award of maintenance and support is equally applicable to our consideration of the property division. Brown, 587 P.2d at 364. Here, we find the division of the stock of A/T Corporation, which is apparently the only marital asset, was substantially inequitable, and thus constituted an abuse of discretion.
As stated by this Court in Brown, 587 P.2d at 365: “In order to have a proper distribution of the marital property, we have stated the trial court must first determine the net worth of the parties at the time of the divorce.” Here, the District Court made no such finding. It did find that the assets of the marriage are 402 shares of the capital stock of A/T Corporation, each party owning 201 shares. It further found that the net value of the stock is “$100,410.00 less debts of $38,000.00 or $62,410.00 i.e. a net per share value of $155.25.” We cannot find any testimony in the record to substantiate these figures.
The District Court also required appellant to transfer 37 shares of her stock in A/T Corporation to respondent to reduce the debts incurred by appellant even though the District Court had stated that such debts were considered in reducing the award of maintenance and support. Neither did the District Court consider the effect the required stock transfer might have as to the control and possible liquidation of the corporation. Both parties should be afforded an opportunity to present evidence as to the marital property.
This case is reversed and remanded for a further decision on an equitable division of the marital property, taking into consideration the net value of all the marital property. The District Court should also consider the effect on control of the corporation upon the transfer of any shares of corporation stock. See Richards v. Richards (1960), 44 Haw. 491, 355 P.2d 188. Also, the District Court should not penalize appellant twice for the $5,798.92 in debts which she incurred. The remainder of the decree of dissolution is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES SHEA and SHEEHY concur.
|
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MR. JUSTICE DALY
delivered the opinion of the Court.
A mother brings this appeal from the conclusions and judgment of the District Court, Fourth Judicial District, which declared her daughter a neglected child, and granted permanent custody over the child to the Department of Social and Rehabilitation Services with authority to consent to her adoption. The mother contends first that section 10-1301(2)(a) and (b), R.C.M.1947, now section 41-3-102(2)(a) and (b) MCA, defining “abuse” and “neglect” were unconstitutionally vague as applied to her. Second she contends that the appropriate standard of proof to be applied to the State in a termination of parental rights proceeding is the “clear and convincing” standard, rather than the “preponderance of evidence” standard. The mother’s third contention is that the District Court abused its discretion in removing the child permanently from her mother because that decision was not supported by even a pre ponderance of the evidence. We affirm the decision of the District Court.
The child was born on May 16, 1975, when her mother was seventeen years old. Her parents were not married at the time of her birth, nor have they ever been married. They did live together on a fairly regular basis from shortly after the child’s birth until December 1977.
In her fifth month of pregnancy the mother was referred to a Public Health Service nurse, Mary McCall, by a high school counselor. From that time on the mother and child have been frequently visited by a variety of health and welfare officials offering assistance and instruction in child care.
Mary McCall testified that she met with the mother and arranged to have a social worker assigned to her. She further arranged for the mother to meet with an eligibility technician to provide assistance in receiving Medicaid money for prenatal care and arranged an appointment with a physician to provide her with that care. She also referred the mother to the W.I.C. program, a federal nutritional program for women, infants, and children, for prenatal nutritional assistance. A senior student social worker from the University of Montana, Tricia Williams, made weekly visits to the mother from December 1974 until the child was born.
The mother was later referred to the “At-Risk Program” of the Missoula City-County Health Department, which attempts to identify mothers and children that will be at risk for potential health problems due to prenatal or delivery complications. According to Mary McCall, the mother was referred to the program because she was under eighteen, had not had prenatal care for the first five months of her pregnancy, was unable to read or write, had suffered a kidney infection and anemia during her pregnancy, and was unmarried.
As a result of this referral, Mary McCall regulary visited the mother at her mother’s home during the summer of 1975 and learned of the baby's problem of staying awake and crying most of the time. In McCall’s judgment, the problem was caused, by the in fant’s diet. Her mother had put cereal in her formula, which McCall concluded was probably constipating the baby because she was too young to handle solid food. McCall also found the mother to be depressed and anxious from lack of sleep. She assisted her with the preparation of formula for her baby, demonstrating each step rather than leaving written instructions because the mother was unable to read.
McCall also helped the mother with an application for a low-income housing project in Missoula when she indicated a desire for independence from her home. The mother obtained the low-income housing and lived in her own apartment in the fall of 1975. Another senior student from the University made a total of 22 visits with the mother that fall to assist with care for her child. During that time, McCall received a referral from the W.I.C. program requesting nutritional counseling for the mother, and visited her once again. The mother had been feeding the child soda pop rather than juice, telling McCall that juice gave the baby diarrhea. McCall testified that the mother’s apartment was messy, with empty beer cans lying around, sacks of garbage on the floor and dirty dishes in the sink. She also noted that the mother made no effort to pick up her daughter when she cried, and that the baby appeared irritable. McCall was told by the apartment manager that the baby had been crying all night, but the mother denied that claim when asked by McCall.
McCall also had several visits with the baby’s father, who was occasionally with the mother during her visits. He told McCall that he hoped to marry the mother sometime, but never had definite plans. He told her that he had failed one armed services test but was hoping to take another so that he could enter the military and then marry the mother. The marriage always appeared to be contingent upon the father’s ability to obtain a stable job and home, but those conditions never materialized.
McCall concluded from her association with the mother that she was not retaining the basic child care information given her:
“When I would visit her, I usually reiterated the same kinds of things about nutritional instructions, the need for a regular physician for [the baby], the need for immunizations to protect [the baby] from preventable childhood diseases and many times when I would visit her, this material seemed to be new as if she had never heard it before. She indicated to me that she was not retaining this information that I had been giving her.”
In April 1976 the parents brought the baby to Dr. Kit Johnson, a pediatrician, following their attempts to give the baby a “green dish soap” enema. According to the parents, the baby had suffered constipation for three days prior to the attempted enema. Dr. Johnson testifed that the baby appeared “acutely ill” and “screamed of pain.” He had her admitted to a hospital where she stayed overnight.
Mary McCall had little formal contact with the mother and child after February 1976 when they moved from her geographical jurisdiction. However, she continued to have some contact. On August 24, 1976, the mother appeared in an alley behind the Missoula County Health and Welfare Building as McCall returned from a home visit. She had the baby with her and told McCall that she was going to have a nervous breakdown; that she and the father had had a fight; that she needed a babysitter for her daughter for two weeks; that she had no money or food for the baby; that the father was drinking heavily; that she was angered by the baby’s continuous crying; and that she was afraid she was going to hurt the child. The baby was unwashed and carried a bottle of spoiled, curdled milk.
McCall took them into the Department of Social Services to make care arrangements for mother and daughter. With two social welfare workers there, Gwen Peterson and Arlene Grossman, McCall agreed that the baby should be placed in temporary foster care until her mother was again able to take care of her. The mother went along with this decision, and the child was temporarily placed. The following day, however, the mother reappeared, demanded her child’s return, and accused the welfare staff of stealing her daughter.
After some discussion with Peterson, Grossman, and McCall, the mother agreed to placement for her child and herself with a family in Clinton, Montana, where the mother herself had once been a foster child. She later signed a stipulation stating the terms of that agreement, which became the basis of a temporary custody order signed by District Court Judge E. Gardner Brownlee on September 3, 1976. The Baker family, with whom mother and daughter were to stay, agreed to serve as parenting models, helping the mother to understand her responsibilities.
In October 1976, the mother and her child returned to Missoula to live with the father. He had obtained a job and a trailer house, but soon lost the job due to excessive drinking. Through the fall months the mother missed several W.I.C. appointments at which she was to receive high protein foods. She did, however, receive in-home assistance from Beatrice Fournier, a home attendant for the Missoula County Welfare Department. Fournier helped the mother plan menus and, realizing her inability to read, brought her pictures of food groups to aid in her planning. She testified, however, that the mother failed to comprehend the need for a balanced diet and that the instructions were not getting through to her.
In November 1976 Arlene Grossman took the child to Dr. Johnson to examine a stomach rash. Dr. Johnson concluded that the rash was not significant but diagnosed an infection in both of the baby’s ears. He prescribed an antibiotic, but Arlene Grossman discovered that the mother failed to give her daughter the prescribed amount at the appropriate times. Nor did the mother return to Dr. Johnson in two weeks for a checkup on the child’s ears as she had been instructed.
On January 18, 1977, the child had another appointment with Dr. Johnson. At that time she exhibited physical and emotional signs which Dr. Johnson concluded required foster placement:
“. . . at this time the child was very restless and irritable and she was biting on her mother as her mother put it. She appeared thin, slightly swollen abdomen, her mother stated that she had had inadequate food for the last month because of insufficient amount of money, stated she was not living with [the father], stated [the child] had a cold and not feeding well for the last month . . . The abdomen was slightly distended, the ears, the right was slightly dull indicating that maybe some residual infection ... I thought at this time the child was maybe suffering from malnutrition and maternal inadequacy, unable to cope with the child.”
Dr. Johnson further testified that his examination showed that the child had lost weight since the previous November.
In February 1977 Dr. Johnson again examined the child when her temporary foster mother, Marlene Donnelly, brought her to him. The ear infection had not yet cleared up but otherwise her physical condition appeared normal. Mrs. Donnelly described to him, however, that the child had a strong tendency to scavenge for food, especially to eat out of household garbage. Dr. Johnson testified that such a tendency bears a high correlation to food deprivation. He reported his findings to the Missoula County Welfare Department and testified later that the child did not receive adequate parental care.
Based upon the mother’s and daughter’s past record of difficulties, and Dr. Johnson’s recommendations, Carol LaCasse, a Missoula County social worker, filed a petition for temporary investigative authority and protective services. The District Court granted the petition on January 19, 1977, authorizing the Department of Social and Rehabilitation Services to take temporary custody of the child. During the next several weeks SRS continued to assist the parents in learning parenting skills, but with results similar to those experienced earlier.
In particular, Carol LaCasse sought parenting training for the mother. She placed the child in the home of an experienced foster mother, Marilyn Fernelius, who served as a parenting model for the mother during January 1977. The mother visited Mrs. Fernelius on weekdays and discussed and planned menus with her. Mrs. Fernelius also instructed the mother in disciplining her daughter but testified that the mother was incapable of controlling the baby, that in effect the child controlled her mother. Mrs. Fernelius testified that she observed the same attraction to garbage which Marlene Donnelly later reported to Dr. Johnson. After several weeks Marilyn Fernelius requested that the child be placed elsewhere because she was already providing foster care for a teenage girl who required a great deal of her time. Within a few weeks the child was placed in the foster care of Mrs. Sadie Milward where she remained until the time of the hearing on the petition to grant permanent custody to SRS. While the child stayed with the Milwards, the parents visited their daughter and took her with them at times but returning her the same day. The record, however, does not reflect that either natural parent was provided with further parental training services during this time.
Following the child’s temporary removal the child and parents had psychological examinations by three psychologists, Dr. Richard Ball, Dr. Herman Walters and Dr. William Stratford. Drs. Ball and Walters, who examined the parents, and Dr. Stratford, who examined the child, all concluded that SRS should seek permanent adoptive custody because of the general inadequacy of the parents, the parents’ apparent inability to change, and because of the child’s special needs. On the other hand, a psychiatrist, Dr. Noel Hoell, who also examined the mother, concluded that he could, find no particular characteristics which would absolutely prevent her from being an adequate parent. He testified that many people with relatively low levels of intelligence are adequate parents.
A pediatrician, Dr. Daniel Harper, saw the mother and child on several occasions as Dr. Johnson’s successor after the child had been placed in temporary SRS custody. He testified that following the temporary custody order the child while in the presence of her mother seemed more “bonded” to her foster mother than to her natural mother, and that the child did not look to her own mother as an “orientating” or “guiding” force. Dr. Harper also testifed that Dr. Johnson’s concerns about growth deficiencies were probably not a source of great concern, since it was later clear that the child was of normal short stature.
Following the hearing on the petition for permanent custody, the District Court issued its findings, conclusions and judgment. The court found that the mother’s limited education and other learning disabilities and the father’s excessive drinking had fesulted in “improper parenting” and had “subjected the minor child to physical and emotional neglect as well as other evidence of improper training.” It found further that the parents were unable or unwilling to provide the necessary training and guidance for their child; that SRS was required to place the child in foster care primarily because of a lack of and need for emotional development; that foster placement had resulted in “great improvement” in her development; that the best interests of the child would not be served by returning her to one or both parents because the natural mother “appears incompetent to face and handle the problems presented to parents by children in their advancing years”; and that the child’s best interests could only be met by her adoption “into a home where the parents have demonstrated their ability” to raise and guide a “child with problems.”
The court concluded first that the child was neglected and second that her best interests and future welfare could only be served by granting permanent adoptive custody to the Department of Social and Rehabilitation Services. Based upon these findings and conclusions, the court granted custody to SRS with authority to consent to her adoption.
Constitutionality of the Neglect Statute As Applied
The mother’s first contention is that section 10-1301 (2)(a) and (b), R.C.M.1947, now section 41-3-102(2)(a) and (b) MCA, was unconstitutionally applied to terminate her parental rights. Her argument is that because section 10-1301(2), which defines “abuse” and “neglect”, fails to state any specific harms to a child which might justify termination of parental rights, it is subject to overly-broad interpretation and arbitrary application. She contends that in this case the child is not suffering any particular harm which requires state intervention into family life but that the State merely perceives that the child would be better off in some home other than her natural mother’s. This, she asserts, is an inadequate justification for termination of her parental rights.
This Court has recognized that family integrity is a constitutionally protected interest. Guardianship of Doney (1977), 174 Mont. 282, 570 P.2d 575, 577. As the United States Supreme Court held in Stanley v. Illinois (1972), 405 U.S. 645, 651, 92 S.Ct. 1208, 1212-13, 31 L.Ed.2d 551, 558-59:
“The Court has frequently emphasized the importance of the family. The rights to conceive and to raise one’s children have been deemed ‘essential,’ Meyer v. Nebraska, 262 U.S. 390, 399, 43 S.Ct. 625, 626, 67 L.Ed 1042 (1923), ‘basic civil rights of man,’ Skinner v. Oklahoma, 316 U.S. 535, 541, 62 S.Ct. 1110, 1113, 86 L.Ed. 1655 (1942), and ‘[r]ights far more precious . . . than property rights,’ May v. Anderson, 345, U.S. 528, 533, 73 S.Ct. 840, 843, 97 L.Ed. 1221 (1953). ‘It is cardinal with us that the custody, care and nurture of the child reside first in the parents, whose primary function and freedom include preparation for obligations the state can neither supply nor hinder.’ Prince v. Massachusetts, 321 U.S. 158, 166, 64 S.Ct. 438, 442, 88 L.Ed. 645 (1944). The integrity of the family unit has found protection in the Due Process Clause of the fourteenth Amendment, Meyer v. Nebraska, supra, 262 U.S. at 399, 43 S.Ct [625] at 626, the Equal Protection Clause of the Fourteenth Amendment, Skinner v. Oklahoma, supra, 316 U.S. at 541, 62 S.Ct. [1110] at 1113, and the Ninth Amendment, Griswold v. Connecticut, 381 U.S. 479, 496, 85 S.Ct. 1678, 14 L.Ed.2d 510 (1965) (Goldberg, J., concurring).”
The mother contends that section 10-1301(2) will inadequately protect these constitutional interests if it is interpreted to authorize a termination of her rights as a parent in this case. The statute itself merely defines “abuse” or “neglect”:
“(2) ‘Abuse’ or ‘neglect’ means:
“(a) the commission or omission of any act or acts which materially affect the normal physical or emotional development of a youth. Any excessive physical injury, sexual assault, or failure to thrive, taking into account the age and medical history of the youth, shall be presumed to be nonaccidental and to ‘materially af: feet’ the normal development of the youth.
“(b) the commission or omission of any act or acts by any person in the status of parent, guardian, or custodian who thereby and by reason of physical or mental incapacity or other cause refuses or, with state and private aid and assistance is unable, to discharge the duties and responsibilities for proper and necessary subsistence, education, medical, or any other care necessary for the youth’s physical, moral, and emotional well-being.”
Since a finding of “abuse or neglect” however gives the District Court jurisdiction to terminate parental rights, Guardianship of Doney, 570 P.2d at 577, the meaning applied to it is the parent’s only safeguard against unjustified intrusion into the family unit.
To illustrate her contention, the mother contrasts the relatively unspecific terms contained in section 10-1301(2) with the more precise standards proposed by the Institute of Judicial Administration-American Bar Association Joint Commission on Juvenile Justice Standards in its Standards Relating to Abuse and Neglect (Tentative Draft 1977) (IJA/ABA standards). The IJA/ABA proposals are based upon a “strong presumption for parental autonomy in child rearing,” and limit “coercive intervention” to protect children “only where the child is suffering or there is a substantial likelihood that the child will suffer, serious harm.” IJA/ABA Standards 1.1 and 1.3(A).
The IJA/ABA proposals seek to avoid unnecessary or unjustified intrusions into family integrity by closely defining the grounds for intervention in terms of specific, objective, serious harm to the child. For example, a court may order in-home supervision or remove a child from his or her parents if:
“A child has suffered, or there is a substantial risk that the child will imminently suffer, physical harm causing disfigurement, impairment of bodily functioning, or other serious physical injury as a result of conditions created by his/her parents or by the failure of the parents to adequately supervise or protect him/her; “A child is suffering serious emotional damage, evidenced by severe anxiety, depression, or withdrawal, or untoward aggressive behavior toward self or others, and the child’s parents are not willing to provide treatment for him/her.” IJA/ABA Standards 2.1(B) and (C).
The rationale behind these standards is particularly important to the mother’s position because the District Court’s findings focused principally on emotional rather than physical neglect of her daughter:
“. . . the Department of Social and Rehabilitation Services was required to place this very young child in foster homes partially because of the child’s physical needs but mostly because the emotional development of the child was so lacking that the only chance for the child to have a reasonable future was to place the child in a home able to provide for its physical and emotional needs.” (Emphasis added.)
As the mother points out, vague abuse and neglect'statutes often result in arbitrary application when the parents involved in the alleged neglect are poor and uneducated. Katz, Ambrosino, McGrath & Sawitsky, Legal Research on Child Abuse & Neglect: Past and Future, 11 Fam.L.Q. 151, 172-75 (1977); Wald, State Intervention on Behalf of “Neglected” Children: Standards for Removal of Children from Their Homes, Monitoring the Status of Children in Foster Care, and Termination of Parental Rights, 28 Stan.L.Rev. 623 (1976) (Wald II); Wald, State Intervention on Behalf of “Neglected” Children: A Search for Realistic Standards, 27 Stan.L.Rev. 985 (1975) (Wald I); Areen, Intervention Between Parent and Child: A Reappraisal of the State’s Role in Child Abuse and Neglect Cases, 63 Geo.L.J. 887, 917-32 (1975) (Areen).
It is likely however that the greatest percentage of child neglect cases involve matters similar to the present one in which the alleged neglect results not from the deliberate design of a parent, but rather from the parent’s low mental or emotional capacity and low financial status. Wald I at 1020-21; Areen at 888; Dembitz, Welfare Home Visits: Child versus Parents, 57 A.B.A.J. 871 (1971). Parents in this category are sometimes described as “marginal” people: “. . . they are continually at the borderline of being able to sustain themselves — economically, emotionally, and mentally.” Wald I at 1021. As Beatrice Fournier described the mother in this case, “Well, I think [the mother] is going to have a hard enough time to take care of herself.”
A parent’s ability to care for himself or herself naturally affects his or her ability to provide a stable, supportive home for a child. “Such parents may provide little emotional support for their children. While the children may not be physically abused, left unattended, dangerously malnourished, or overtly rejected, they may receive little love, attention, stimulation, or emotional involvement.” Wald I at 1021.
The United States Supreme Court has recently observed that middle-class social workers tend to favor long term foster placement for children of such families, “thus reflecting a bias that treats the natural parents’ poverty and lifestyle as prejudicial to the best interests of the child.” Smith v. Organization of Foster Families for Equality & Reform (1977), 431 U.S. 816, 832, 97 S.Ct. 2094, 2105, 53 L.Ed.2s 14, 29 (citing, Rein, Nutt & Weiss, Foster Family Care: Myth and Reality, in Children and Decent People 24, 25-29 (A. Schorr ed. 1974). Yet, the mother contends poverty and its various attendant lifestyles must not be equated with neglect absent some showing of actual or imminent harm to the child. See Wald I at 1001-02; Wald II at 649-50; Areen at 925-28, 930-32.
This Court has held that the State may not terminate a parent’s right to raise his or her own child “merely because a district judge or a state agency might feel that a non-parent has more financial resources or pursues a ‘preferable’ lifestyle.” Guardianship of Doney, 570 P.2d at 578. Beyond that principle, however, it is more difficult to say what is the minimum constitutionally acceptable standard for such an extreme intervention into family integrity. The IJA/ABA standards, which remain in tentative draft form, might provide a policy measure by which to evaluate the adequacy of section 10-1301(2), but they represent only one proposal.'Other proposals are equally available for our consideration. Areen for ex ample, has proposed a standard for neglect which is deliberately less specific than the proposed IJA/ABA standards, especially in the area most relevant to this case, “emotional” neglect:
“A ‘neglected’ child is one whose physical or emotional health is significantly impaired, or is in danger of being significantly impaired, as a result of the action or inaction of his parent, guardian, or primary caretaker.” Areen at 933.
While this standard, like the IJA/ABA proposal, focuses the attention of the court on the “condition of the child rather than on parental fault,” it deliberately avoids listing specific evidences' of emotional damage such as “severe anxiety,” “depression,” “withdrawal,” and “untoward aggressive behavior.” The reason, which is of obvious importance here, is a lack of adequate consensus among child behavior experts as to what behavior symptoms indicate emotional deprivation. Areen at 933.
A totally different approach is found in the Model Statute for Termination of Parental Rights (MSTPR), prepared by the Neglected Children Committee of the National Council of Juvenile and Family Court Judges. See, 27 Juv.Just. No 4, 3, 7 (1976). The MSTPR directs the court to consider the parent’s fitness directly rather than look for specific evidence of harm to the child. Section 12(l)(a), for example, requires the court to consider the “emotional illness, mental illness or mental deficiency of the parent, of such duration or nature as to render the parent unlikely to care for the ongoing physical, mental and emotional needs of the child.” (Emphasis added.)
In a preface to the MSTPR, its authors, judges from several states, note that they “have not been isolated from nor unmindful of the cross currents of the behavioral sciences which have preoccupied this nation in recent years.” 27 Juv.Just. at 3. Yet as judges, they continue, they have been able to “test these theoretical fermentations against the realities of their day-to-day practice.” 27 Juv.Just. at 3-4.
The Council of Juvenile and Family Court Judges has responded more directly to the IJA/ABA proposed standards, concluding that they offer entirely inadequate protection to children:
“This lengthy volume needs drastic revision in that it totally disregards the rights of a child to be protected and safe in his home environment. These standards greatly limit the process by which a neglected or abused child may be protected through the juvenile justice system. There is an attempt by the authors to restrict the interference of society in the upbringing of children. While this is obviously a worthwhile goal, there needs to be a balance so that youngsters can be adequately protected from the physical and mental abuse and neglect of parents.” 8 Juvenile and Family Court Newsletter, No. 6 at 9 (1978).
Thus, the IJA/ABA tentative draft proposals which the mother relies on lack not only a consensus of support among child behavior experts, Areen at 933, but are considered inadequate by the National Council of Juvenile and Family Court Judges. While it is not this Court’s position to declare whether one proposal or another is a better approach, we can say with some confidence that the IJA/ABA proposal is not the only constitutional approach. The proceedings in this case need not be measured against the IJA/ABA model and rejected on constitutional due process grounds if they fail to meet its strict standards. See, State v. McMaster (1971), 259 Or. 291, 486, P.2d 567, 569.
Our past decisions indicate that section 10-1301(2) is not so broadly interpreted as to permit termination of parental rights merely because the courts or the concerned social welfare agency disapprove of the parents’ lifestyles. See, Guardianship of Doney, 570 P.2d at 578; Matter of Fisher (1976), 169 Mont. 254 258-59, 545 P.2d 654, 656. On the other hand, the statute is broad enough to include emotional deprivation, inadequate nutrition, and extreme and prolonged uncleanliness of the child under the definition of neglect. Matter of J. J. S. (1978), 176 Mont. 202, 577 P.2d 378, 380-81. See also, Matter of Henderson (1975), 168 Mont. 329, 332, 542 P.2d 1204, 1205-06.
In the present case the District Court’s finding of poor emotional development of the child was based on the testimony of several qualified witnesses. The record does not show that the mother deliberately refused to provide emotional support for her daughter. Rather, the social welfare workers who attempted to help her testified that the mother was simply incapable of caring for her daughter, physically as well as emotionally. Thus, this case involved not so much a legal due process problem of notice to the mother of what behavior was expected of her or what she could do to have her daughter returned to her, but rather a human problem of a mother’s inability to understand her child’s needs and to realistically provide for them.
We are aware that the mother may have received conflicting in- . structions, especially regarding discipline of her child. However, an overall reading of the testimony indicates that the mother’s problem went beyond these apparent conflicts, for she was not even capable of understanding or retaining simple instructions in the first place.
The mother’s condition, which was described to this Court as “borderline mentally retarded,” presents a special problem which courts in other states have recently considered. The New York Family Court, in Guardianship of Strausberg (1977), 92 Misc.2d 620, 400 N.Y.S.2d 1013, dealt with the same sort of condition as we face here:
“A summary of the expert testimony . . . showed the respondent to be a borderline retarded person, who under stress is easily confused in her thinking. That at the present time and in the immediate future the respondent has little understanding or capacity to provide the nurturance, structure and controls and fulfill other emotional needs of a developing child.” 400 N.Y.S.2d at 1014.
The court noted particularly the impending difficulties which would confront parent and child if they were reunited and expressed concern over the time which further attempts at training the mother in child care methods would require:
“The older the child gets the more difficult it will become for the respondent to fulfill the parental role and provide the direction, structure and other emotional needs of the child herein. The infant .. . should not be held in limbo for this indefinite period of time for the purposes of training the respondent in the area of child care.” 400 N.Y.S.2d at 1015.
On the basis, the court refused to order the child returned to her mother. However, mental deficiencies alone do not justify termination if there is no evidence that the child is in some way harmed or likely to be harmed because of the parent’s condition. In construing its termination statute, the Minnesota Supreme Court made this requirement clear:
“. . . we wish to state unequivocally that mental illness in and of itself shall not be classified as ‘other conduct’ which will permit termination of parental rights. Rather, in each case, the actual conduct of the parent is to be evaluated to determine his or her fitness to maintain the parental relationship with the child in question so as to not be detrimental to the child.” In re Kidd (Minn. 1978), 261 N.W.2d 833, 835.
See also, In re E&B (Utah 1978), 578 P.2d 831, 833-34; In re Telles (1978), 87 Cal.App.3d 864, 151 Cal.Rptr. 263, 266-67; Matter of Fish (1977), 174 Mont. 201, 569 P.2d 924, 926.
In the present case the District Court found that the child was harmed by her mother’s failure to provide adequate emotional support, and concluded that the mother was “incompetent to face and handle the problems presented to parents by children in their advancing years.” These considerations are beyond the mere “poverty” or “lifestyle” characterizations which this Court found inadequate in Fisher and Doney. Here, the District Court’s conclusion that the child was harmed by her home environment is supported by the testimony of social workers, physicians, and psychologists. We conclude, therefore, that section 10-1301(2) was constitutionally applied in this case.
Standard of Proof
The mother’s second contention on appeal is that the burden of proof required of the State in a termination of parental rights action is the “clear and convincing” standard, and that the State failed to meet that burden. No previous decision of this Court has set forth this requirement, nor is any particular burden mandated by statute. However, in light of our past rulings and the interests involved in such cases, we hold that the state must show, by clear and convincing evidence, that the child is neglected or abused before parental rights may be terminated.
As the foregoing analysis shows, parental interests in raising children are constitutionally protected. We note further that in this case the protection which the mother enjoys is not weakened by the fact that her child was born out of wedlock. Stanley v. Illinois, 405 U.S. at 651-52, 92 S.Ct. at 1213, 31 L.Ed.2d at 559. The constitutional value of protecting family integrity also has received support from a policy point of view as noted by the authorities above. Similarly, the declaration of policy which accompanies the statutes governing termination places emphasis on the preservation of family unit “whenever possible.” Section 10-1300(4), R.C.M.1947, now section 41-3-10 l(l)(d) MCA. See, Matter of Fisher, 169 Mont. at 258-59, 545 P.2d at 656.
In the past this Court has held that the required standard of proof in a termination of parental rights case is “substantial credible evidence” that the child is abused, neglected, or dependent. Matter of Fisher, 169 Mont. at 258, 545 P.2d at 656. Yet, of those states that have considered the issue, most have chosen between a “preponderance of the evidence” standard and the “clear and convincing” test proposed by the mother. See, Matter of Orzo (1975), 84 Misc.2d 482, 374 N.Y.S.2d 554-564-65 and n.20. While the distinction between these standards is often elusive, we conclude that the higher standard represented by the “clear and convincing” test more adequately furthers the policy of family unity and more nearly approximates the previous approach of this Court than does the “preponderance of evidence” test. See In re Maria (U.S. Territorial Court, V.I.1978), 5 Fam.L.Rep. 2089, 2090; In re Telles, 151 Cal.Rptr. at 265-66; Matter of Rosenbloom (Minn.1978), 266 N.W.2d 888, 889-90.
It is important to observe that this test does not deny children the protection they need. We note in particular that the “clear and convincing” standard of proof is not as rigorous as the “beyond reasonable doubt” standard. See, In re Maria, 5 Fam.L.Rep. at 2090; In re Telles, 151 Cal.Rptr. At 265; Matter of Rosenbloom, 266 N.W. 2d at 889.
The District Court did not abuse its discretion in concluding that the mother was an unfit parent; rather, its conclusion is supported by substantial credible evidence. The judgment granting permanent adoptive custody to the Department of Social and Rehabilitation Services is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, . SHEA and SHEEHY concur.
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MR. JUSTICE MORRIS
delivered the opinion of the court.
This is an action for damages for an injury alleged to have been sustained by a seven-year old boy who, while on his way home from school at the noon hour, stumbled over loose boards on the sidewalk and fell, injuring his knee. The plaintiff is the mother and brings the action as the minor’s guardian.
An action growing out of the same accident was before this court in April, 1940, Lazich v. Belanger, 111 Mont. 48, 105 Pac. (2d) 738. That action came here by appeal from a judgment entered after a demurrer to the complaint was sustained, the plaintiff having refused to plead further. We reversed the lower court in that case on the ground that the complaint stated a cause of action and remanded the cause with directions to overrule the demurrer. The ruling in that case, whether erroneous or not, has no application to the case at bar. There we held that the injured child, being a minor, was non sui juris, and for that reason the provisions of section 5080, Revised Codes, as amended by Chapter 122 of the 1937 Session Laws, did not apply as to the provisions of that statute relative to the sixty days’ notice of injury.
Section 5080, Revised Codes, as amended, provides: “Before any city or town in this state shall be liable for damages to person and/or property for, or on account of, any injury or loss alleged to have been received or suffered by reason of any defect or obstructions in any bridge, street, road, sidewalk, culvert, park, public ground, ferryboat, or public works of any kind in said city or town, it must first be shown that said city or town had actual notice of such defect or obstruction and reasonable opportunity to repair such defect or remove such obstruction before such injury or damage was received; the city clerk must make a permanent record of all such reported defects and shall report to the city street commissioner immediately upon notice of such defect or obstruction; and the person alleged to have suffered such injury or damage, or someone in his behalf, shall give to the city or town council, commission, manager, or other governing body of such city or town, within sixty days after such injury is alleged to have been received or suffered, written notice thereof, which notice shall state the time when and the place where such injury [is] alleged to have occurred. Provided, however, that this section shall not exempt cities and towns from liability for negligence because of failure to properly place signs, markers or signals to warn persons of excavations or other obstructions existing and caused by said city or town, upon any bridge, street, alley, road, sidewalk, pavement, culvert, park, public ground, ferryboat or public works of any kind.”
In the case at bar it is not the notice of injury to the child, but notice of the material being piled on the sidewalk, that is in issue. It will be noted that the statute provides that the city must have actual notice and a “reasonable opportunity to repair such defect or remove such obstruction,” before any liability for damages shall attach. The record shows the material was placed on the sidewalk some time between eleven a. m. and noon of the day of the accident. It is not shown that the city had any “actual notice” of the lumber being upon the sidewalk. Hence it could have had no “reasonable opportunity” to have the lumber removed. However, to meet this situation the plaintiff predicates her action upon the theory that when the city issued the permit to the contractor who did the remodeling work, the city thereby constituted the contractor the city’s agent and “actual knowledge” of the contractor was aetual knowledge of the city.
We cannot subscribe to any such theory. The application for the building permit and the permit issued appear in the transcript as plaintiff’s Exhibit “A.” There is nothing in this exhibit that shows any intention on the part of the city to give the contractor power to act as the city’s ágent in any capacity. Rather such a permit is, in the nature of a license, required by municipal ordinance authorizing building contractors and others who undertake to construct buildings, to install plumbing and perform other similar acts and things within the corporate limits of the municipality.
City ordinances enacted by municipal organizations requiring that a permit shall be obtained from the municipality before any building shall be erected or repaired, or any other work of a similar nature or kind is begun, within the corporate limits of the municipality, are regulations established pursuant to and in the exercise of the police powers vested in municipalities. In issuing a building permit to the contractor involved in the case at bar the city of Butte was merely complying with the regulatory provisions of the ordinance. The provisions of the building ordinance were not set out in the transcript, but it is not contended that they provided that where a building permit should be issued to a building contractor to repair or erect a building in the city, such contractor should become an agent of the city to keep the sidewalk free from obstructions. Section 5039.37 empowers city and town councils to prevent encumbering sidewalks with obstacles and material and such legislative grant carries the implied power to compel observance of such regulation. This means that the enforcement of this regulation must be made effective by the officers or employees of the municipality. Even if it were held that the contractor were the agent of the city it would be necessary to establish the fact that the alleged negligent act of the agent was done pursuant to and within the scope of the authority delegated to the agent by his principal. We do not think the city of Butte could, even by express attempt, delegate any powers to others than those who are empowered by statute either as officers or employees to act for the city.
Section 4956, Revised Codes, provides: “Every city has legislative, executive, and judicial power. Its legislative power is vested in a city council, its executive power in a mayor and his subordinate officers, and its judicial power in a police court. ’ ’
Municipalities have only such powers as are expressly granted (Milligan v. City of Miles City, 51 Mont. 374, 153 Pac. 276, L. R. A. 1916C, 395), and such powers cannot be delegated. (Helena Light & R. Co. v. City of Helena, 47 Mont. 18, 130 Pac. 446.) A city is, of course, liable for damages arising out of the negligence of its officers and employees for acts done within the scope of their employment, but not otherwise.
2 Bouv. Law Dict., Rawle’s Third Revision, p. 2569, defines “permit” as “A license or warrant to do something not forbidden by law.” The word has been frequently defined in court decisions: “Permit” means “allowing by tacit consent or by not hindering.” (State v. Peters, 112 Ohio St. 249, 147 N. E. 81, 84.) “The word ‘permit’ means ‘to resign’; ‘to allow’; ‘to suffer’; ‘to put up with’; ‘not to prohibit.’ ” (Murphy v. Roney, 26 Ky. Law Rep. 634, 82 S. W. 396, 398.) Webster defines “permit” as “A written license or permission given by a person or persons having authority.”
In none of the authorities do we find where one holding a permit or a license issued by a municipality is classified as an agent of the municipality by reason of holding its permit or license. The contractor was not an officer or employee of the city of Butte, but was the contracting agent of the owner or owners of the building.
Even though we should find the contractor to be the agent of the city yet the plaintiff could still not prevail. The crux of this lawsuit is notice. The statute is unequivocal in its terms. It provides bnt one kind of notice and that is actual notice. The most that could be said on the granting- of the permit or the alleged agency of the contractor would be that it gave the city constructive notice. That is not sufficient.
We find no merit in the contentions of the plaintiff and the judgment must be reversed.
Other reasons appear in the record that cast doubt upon the merits of the plaintiff’s cause. This is particularly true of the evidence showing the child according to attending physicians did not have proper treatment for more than a month after the accident, during which time the injury developed to a very dangerous degree. It appears that the physician called just after the accident was in doubt about the kind or extent of the injury from which the child was suffering, but suspected osteomyelitis, and advised an operation. The parents of the child would not consent to an operation, but depended upon the treatment given the child by a Chinese herb doctor. It is clear from the testimony of two or more of the attending physicians that the delay in affording the child proper treatment allowed the disease to develop unchecked. In the meantime the leg became badly swollen and discolored, and the body of the child emaciated from intense suffering, and lack of nourishing food. It further appears that if some members of a local civic organization in Butte had not by chance learned of the condition of the child and arranged to have him sent to the Mayo Clinic for an operation, he would not have recovered. The Rochester institution diagnosed the illness as osteomyelitis and operated, which in some weeks resulted in much improvement in the infected bone condition, and started the growth of new bone to replace that infected.
Further contentions we deem to be without merit.
The judgment is reversed and remanded with instructions to dismiss the action.
Mr. Chief Justice Johnson and Associate Justices Anderson and Erickson concur.
Rehearing denied December 30, 1944.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
Appeal from a judgment of dismissal entered in the district court of the eighteenth judicial district, Gallatin County, following an order of the court sustaining special demurrers filed by the defendants and the refusal of the plaintiff to further plead.
The complaint herein set forth three causes of action. The first alleged that the defendant Roy R. Ayres was indebted to the plaintiff in a specified sum of money.
The second cause of action set forth the allegations as to the execution of certain mortgages upon the described property by the defendant Roy R. Ayres to the defendants C. E. and Oneita Ayres, and a conveyance of the same property by defendant Roy R. Ayres to his wife, Verna H. Ayres, and that by reason of the mortgages and deed the defendant Roy R. Ayres became insolvent, and each of the mortgages and the deed was made without a fair consideration.
The third cause of action, after certain reallegations of matters contained in the previous two causes of action, alleged that the defendant Roy R. Ayres at the time of each of the mortgages was engaged in business and that after their execution he had an unreasonably small capital in his business.
The prayer sought judgment against Roy R. Ayres for the amount of the indebtedness; that the mortgages be set aside, annulled and held for naught; that the deed be set aside, annulled and held for naught; and for costs and such other and further relief as may be just and proper in the premises.
Separate and special demurrers were filed by Roy R. Ayres, by C. E. Ayres and Oneita Ayres, and by Yerna H. Ayres, all upon the grounds that the causes of action were improperly united in that they belonged to different classes enumerated in section 93-3203, R.C.M.1947, and for the further reason that the first cause of action affected only Roy R. Ayres and did not affect all of the parties defendant.
These separate and special demurrers were each sustained and plaintiff granted time in which to further plead. To this order plaintiff filed exception and stated it would not amend its complaint and would stand upon it. Thereafter judgment was entered from which this appeal is taken.
In this court respondents have filed a motion to dismiss, predicated upon two grounds. The first is that the judgment was not appealable because it was a voluntary one based on the order sustaining the special demurrers, and secondly, that the appeal is not taken from such a judgment or order as is enumerated in section 93-8003, R.C.M.1947.
Respondents in support of their motion contend that the dismissal was a voluntary one, but we are not inclined to adopt such view. They further contend that the judgment is simply an intermediate ruling and is not a final judgment, and seek to differentiate between the general demurrers and special demurrers.
It has long been the rule in Montana that a judgment entered following the sustaining of a demurrer, when the appellant has elected to stand upon his pleading, is appealable under section 93-8003, R.C.M.1947. See McLean v. Dickson, 58 Mont. 203, 190 P. 924; Sorrels v. Ryan, 129 Mont. 29, 30, 281 P.2d 1028; Monarch Lumber Co. v. Haggard, 139 Mont. 105, 360 P.2d 794.
We hold the motion to dismiss is without merit and the same is denied.
As to the merits of the appeal it is respondents’ contention that section 93-3203, R.C.M.1947, which provides in part that, “The causes of action so united must all appear on the face of the complaint to belong to one only of these classes, and must affect all the parties to the action” is controlling and that there is a misjoinder where one of the causes of action does not affect all of the parties.
Appellant, on the other hand, contends that the type of action and joinder of the causes of action here involved are authorized by the specific provisions of the Uniform Fraudulent Conveyance Act, being sections 29-101, et seq., R.C.M.1947.
We have not previously considered the Uniform Fraudulent Conveyance Act so far as the contentions here present are concerned.
The Act was adopted in Montana in 1945. The Act had been approved by the National Conference of Commissioners on Uniform State 'Laws in 1918 and submitted to the various state legislatures for consideration. The following year, 1919, it was adopted by several states including South Dakota, Michigan and New Jersey. Minnesota followed in 1921, New York in 1925, and California in 1939, to mention a few of the states in which it had been in effect prior to our adoption.
We have long observed in our decisions that where a statute is similar to one in a sister state that we should give consideration to the construction which it had received by the courts of the state where it had been previously adopted. Roberts v. Roberts, 135 Mont. 149, 338 P.2d 719, and cases cited therein. That such construction is not binding upon this court is likewise true. Kujich v. Lillie, 127 Mont. 125, 260 P.2d 383.
In 1929 in the case of the American Surety Co. v. Conner, 251 N.Y. 1, 4, 5, 6, 7, 166 N.E. 783, 65 A.L.R. 244, in an opinion written by Chief Justice Cardozo, that court stated:
“A question of procedure confronts us at the threshold. Neither the bank nor its assignee, the plaintiff, had recovered judgment against Conner when this action was begun. In the absence of enabling statute, it has been the practice of equity to refuse relief against a conveyance in fraud of creditors till the suitor has recovered a judgment at law establishing the debt. [Citing cases]. * * *
‘ < * =» * Article 10 of the Debtor and Creditor Law is substantially the same as the Uniform Fraudulent Conveyance Act, prepared by the Commissioners for the Promotion of Uniformity of Legislation in the United States, and is to ‘be so interpreted and construed as to effectuate its general purpose to make uniform the laws of those states which enact it’ [Citing cases.]. * * *
“We think the effect of these provisions is to abrogate the ancient rule whereby a judgment and a lien were essential preliminaries to equitable relief against a fraudulent conveyance. The Uniform Act has been so read in other states. [Citing cases.]. Decisions cited to the contrary were made without reference to the statute and without professing to construe it. See e. g., Lipman v. Manger, 185 Wis. 63, 200 N.W. 663. The reading seems to be inevitable, aside from any precedent. The act is explicit that a creditor may now maintain a suit in equity to annul a fraudulent conveyance, though his debt has not matured. It is not believable that a creditor with a debt already due was to be placed in a less favorable position, or beset by greater obstacles. For the one as for the other, the path is to be cleared of harassing impediments to the swift pursuit of justice. The act in its definition of a creditor seeks a rule of uniformity, and in so doing levels distinctions that at times had been the refuge of the dilatory debtor. It did not level them at the beginning to restore them later on. Certainty would, indeed, have' been promoted if it had said in so many words that judgment and a lien should no longer be essential. We think it said as much, however, by fair and natural implication. The creditor may reject the aid of equity, and levy attachment or execution at law (section 278, subd. b), as he might before the statute. He may seek the aid of equity, and without attachment or execution, may establish his debt, whether matured or unmatured, and challenge the conveyance in the compass of a single suit. This he might do, even before the statute, if the debtor waived compliance with the preliminary conditions [Citing cases.]. What once he might do of favor, he now may do of right. Questions may arise hereafter as to the proper mode of trial where the debt is in dispute [Citing cases.] or as to the proper form of judgment in the event that there are successive suits or several and competing creditors [Citing eases.]. The creditor who acts mider section 278 is to set aside the conveyance ‘to the extent necessary to satisfy his claim, ’ but when he acts under section 279, the restriction, if it exists, is implied and not expressed. The solution of these difficulties and others of like order may be postponed till they develop. Enough for present purposes that the plaintiff has a standing to challenge the conveyance.”
Later decisions in New York followed the principle that the right to seek a money judgment is merely collateral to the primary right to set aside the conveyance. Shugerman v. Sohn, 255 App.Div. 866, 7 N.Y.S.2d 587; Home Indemnity Co. v. Filyork Holding Corp., 258 App.Div. 962, 16 N.Y.S.2d 726; Henry v. The First Nat. Bank of Ardsley, [Sup.] 110 N.Y.S.2d 115.
The Supreme Court of Minnesota in 1938 in Lind v. O. N. Johnson Co., 204 Minn. 30, 38, 39, 282 N.W. 661, 119 A.L.R. 940, followed the reasoning set forth in the American Surety Co. case, supra [251 N.Y. 1, 166 N.E. 783], when it stated:
“In connection with the problem here presented the uniform act brings for solution the following questions: (1) Could plaintiff have assailed the 1928 transfer before he obtained a judgment, and, if so, was he obliged to pursue such a course under penalty of the statute of limitations running from the time the transfer could first be impeached? (2) Does the act abolish the time-honored practice of securing judgment and having execution returned unsatisfied before bringing suit to set aside a fraudulent conveyance?
“2 Mason Minn.St.1927, § 8483, provides that a creditor whose claim has matured may have a fraudulent conveyance (or transfer) set aside to the extent necessary to satisfy his claim or he may disregard the conveyance and levy or attach the property. Section 8475 defines a creditor as a person having a claim, whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent. While it has been argued that the word ‘creditor’ in § 8483 should be construed as ‘judgment creditor’ (20 Columbia L.Rev. 339, 340, but see Bridgman, Uniform Fraudulent Conveyance Act in Minnesota, 7 Minn.L. Rev. 453, 530, at 540), the courts which have considered the problem in light of the act have not adhered to such a view and have held a creditor can set aside a transfer of property, fraudulent as to him, although he has not obtained a judgment. [Citing cases.] * * *
“We are inclined to the view that the better reasoned cases permit a simple creditor to maintain suit against a grantee of fraudulently conveyed property. The definition of ‘creditor’ in § 8475 is clearly broad enough to embrace a party without a judgment. Section 8484 grants to a creditor whose claim has not matured the right to apply to the court to set aside a fraudulent transfer by his debtor. Obviously such a proceeding could not be predicated upon a judgment. It does not seem sensible to say that a creditor whose claim has matured should be in any less advantageous position. The whole purpose of the enactment is aimed at the dishonest debtor and seeks to provide an orderly, efficient, and speedy remedy for the creditor. ’ ’
In 1924 the Supreme Court of Michigan had this to say:
“With the adoption of the Uniform Fraudulent Conveyance Act (Act No. 310, Public Acts 1919, 1922 Supp.C.L. § 12003 [9]), the troublesome question of whether a levy should be made and a bill in aid of execution filed, or a creditor’s bill filed upon return of an execution, or a bill with double aspect filed, has departed. Now, in case a conveyance is fraudulent as to a creditor, he may: ‘(a) Have the conveyance set aside or obligation annulled to the extent necessary to satisfy his claim; or (b) Disregard the conveyance and attach or levy execution upon the property conveyed. ’ This gave plaintiffs the right to file the bills without making levies.” Morse v. Roach, 229 Mich. 538, 201 N.W. 471.
In 1929 the Supreme Court of South Dakota had before it a case wherein a debtor had given a note to the plaintiff and approximately a year later, and after the note had become due, transferred certain lands to his wife. Plaintiff brought an action on the note, and also asked that the conveyance from the debtor to his wife be set aside as fraudulent as to creditors. The trial court had granted judgment on the note and adjudged that the conveyance from the debtor to his wife was made with intent to defraud his creditors and was void as to the plaintiff. The Supreme Court stated:
“Appellant contends that an action to set aside an alleged fraudulent conveyance cannot be maintained until the plaintiff has first secured a specific lien on the land, and that therefore her objection to the introduction of any evidence on that branch of the case should have been sustained. It is unnecessary to inquire whether that was the law in this state prior to the adoption of the Uniform Fraudulent Conveyance Act. Under section 9 of that act (chapter 209, Laws of 1919) a creditor whose claim has matured, who establishes that a conveyance was fraudulent as to him, may have the conveyance set aside to the extent necessary to satisfy his claim. We think under this provision, in an action brought upon matured obligation, upon proper pleading and proof, relief may be obtained by the setting aside of a conveyance fraudulent as to the plaintiff, without the necessity of first securing a specific lien upon the property alleged to have been fraudulently conveyed. Morse v. Roach, 229 Mich. 538, 201 N.W. 471.” Virgil State Bank v. Wahl, 56 S.D. 318, 320, 228 N.W. 392.
Again in 1931 the Supreme Court of Michigan had before it a case wherein a debtor had transferred certain property, and action was brought to have the transfer set aside as fraudulent and for a money decree against the debtor. In its opinion the court stated: ■
“* * * If the conveyance is fraudulent, plaintiffs’ bill should not be dismissed on the ground of lack of equity jurisdiction. Whether or not it is fraudulent should be determined in the light of the provisions of the Uniform Fraudulent Conveyance Act ([3] Comp. Laws 1929, § 13392 et seq.), which provides:
“ ‘ “Creditor” is a person having any claim, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent. “Debt” includes any legal liability, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent.
“ ‘A person is insolvent when the present fair salable value of his assets is less than the amount that will be required to pay his probable liability on his existing debts as they become absolute and matured. * * *
“ ‘Every conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyance is made or the obligation is incurred without fair consideration. ’
“There can be no question but that, by giving this deed to his brother, Charles Jirasek became insolvent within the meaning of the act quoted. In this particular the circuit judge made the following finding:
“ ‘At the time of giving the deed practically all of the property possessed by the defendant, Charles Jirasek, of any value, including his automobile, was in the name of his brother, Joseph. ’
“Because the conveyance rendered Charles Jirasek insolvent, it was fraudulent as to creditors if made ‘without fair consideration.’ The undisputed proof is that there was absolutely no consideration for Charles’ conveyance of his equity over and above the amount he owed to his relatives. Within the meaning of the act plaintiffs are creditors of Charles Jirasek and he is their debtor.
“ ‘One who has a cause of action based on a tort is a “creditor” within the meaning of the uniform fraudulent conveyance act.’ (Syllabus) Dutcher v. Van Duine, 242 Mich. 477, 219 N.W. 651.
“The obvious purpose of this legislation was to make available to a ‘creditor,’ as defined in the act, an adequate remedy which theretofore was not available until the creditor had first reduced his claim to judgment. * * *
“The act is remedial. It should be given a liberal construction. It has been so construed in courts of other states wherein this uniform act has been adopted. * * *”
The opinion then quotes from American Surety Co. v. Conner, supra, and continues:
“It is of no consequence in this equitable proceeding whether plaintiffs’ recovery from Charles Jirasek is based on fraud and deceit or that it is considered as in assumpsit upon waiver of a tort. Charles Jirasek’s fraudulent conveyance of his property rendered him insolvent, and under the Uniform Fraudulent Conveyance Act the equity court acquired jurisdiction of the whole subject-matter in litigation. This case is unlike our recent decision in Farrell v. Hannan Real Estate Exchange, 251 Mich. 669, 232 N.W. 209, wherein the court found the plaintiff was not entitled to equitable relief of any character whatever, but only to damages recoverable, if at all, in an action at law. Under such circumstances the proceeding in equity was properly dismissed. But in the instant case as against all the defendants plaintiffs have established a clear right to injunctive and other equitable relief provided they maintain their conspiracy charge against Charles Jirasek. Under the circumstances of this record, to hold that these plaintiffs do not have a right to equitable relief in this ease is to say that the Uniform Fraudulent Conveyance Act affords a defrauded victim no remedy which he did not have prior to the enactment of this statute. For all practical purposes it would nullify the act. To make available the remedy provided by this legislation we should hold and do hold that the court of equity has and retains jurisdiction to adjudicate the whole controversy between these .litigants.” Hartford Acc. & Indemnity Co. v. Jirasek, 254 Mich. 131, 139, 143, 235 N.W. 836.
In 1944 the District Court of Appeals, First District of California, in Hefferman v. Bennet & Armour, 63 Cal.App.2d 178, 146 P.2d 482, held that it was not necessary that the claim of the creditor be first reduced to judgment before a fraudulent conveyance could be attacked. This holding was later affirmed in Rice v. Schubert, 101 Cal.App.2d 638, 226 P.2d 50.
In 1928 the Court of Appeals of Maryland in Lipskey v. Voloshen, 155 Md. 139, 141 A. 402, concurred in Morse v. Roach, supra. The court also reaffirmed its previous holding that a creditor could pursue its remedy in equity and not be compelled to resort to an action or actions at law.
In general these were holdings in jurisdictions which had adopted the Uniform Fraudulent Conveyance Act prior to its adoption in Montana.
Respondents correctly assert that prior to the adoption of the Uniform Fraudulent Conveyance Act, a creditor in Montana could not attack a conveyance as fraudulent unless and until he had first secured a lien on the property in question by a judgment and execution, a levy of attachment, or some other process. Bowen v. First State Bank, 69 Mont. 223, 221 P. 527; Missoula T. & S. Bank v. Boos, 106 Mont. 294, 77 P.2d 385.
Respondents also assert that the effect of the adoption of the Act was simply and only to allow a general creditor to assail a conveyance as fraudulent without first securing a lien on the property involved.
Appellant contends that all it is here asserting is a matured obligation and the right to be able to collect thereon from the property of the defendant Roy R. Ayres, snch property having been encumbered and transferred to other persons, being the other named defendants.
In Beers v. W. P. Devereux Co., 87 Mont. 210, 286 P. 406, this court held that Section 93-3203, R.C.M.1947, did not require that the causes of action united in one action should affect all parties equally or in the same manner.
There can be no doubt that all defendants are affected by this action though not all in the same maimer. If the debtor conveyed and encumbered his property for less than adequate consideration at a time when he was insolvent or had an unreasonably small amount of capital left after such encumbrances and transfer, Sections 29-104 and 29-105, R.C.M.1947, provide such transactions would be fraudulent as to creditors.
In view of the provisions of the Uniform Fraudulent Conveyance Act and the views expressed by courts of other states when faced with somewhat similar situations, we believe the intent and purpose of the Act was to permit joinder of causes of action as has been done in the instant case. Any other interpretation renders the Act meaningless and would leave a creditor in the same situation as existed before its passage.
Rule 18(b) of the Montana Rules of Civil Procedure, Section 93-2704-2, R.C.M.1947, effective January 1, 1962, does permit this type of joinder and clarifies the situation but was not the controlling law at the time the order appealed from herein was entered.
For these reasons the judgment is reversed and the cause remanded to the district court for further proceedings not inconsistent with the views herein expressed.
MR. JUSTICES ADAIR, DOYLE, CASTLES and JOHN C. HARRISON concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Petitioner, Albert Kenneth Fisher, filed a petition for writ of habeas corpus in this Court on May 17, 1978. We appointed counsel to represent him and subsequently stayed the proceedings in this Court pending an evidentiary hearing in the District Court of the Third Judicial District, Powell County. The hearing was held on December 7, 1978, before the Honorable Robert J. Boyd, and resulted in an order dated January 19, 1979, granting respondent’s motion to quash and dismiss the petition. The order constituted the District Court’s findings of fact and conclusions of law.
Petitioner filed an amended petition for writ of habeas corpus in this Court on April 6, 1979. A response to the amended petition was filed April 30, 1979, by a Special Assistant Attorney General for the Department of Institutions. Because the original petition was filed some time ago, petitioner was excused from compliance with this Court’s recently adopted requirements with respect to habeas corpus relief.
On July 9, 1974, petitioner was sentenced to serve ten years in the Montana State Prison after pleading guilty in the District Court, Granite County, to the offense of burglary. On May 13, 1976, petitioner was paroled to Seattle, Washington, pursuant to the provisions of the Uniform Act for Out-of-State Parolee Supervision, section 95-3201 through 95-3202.4, R.C.M.1947, now section 46-23-1101 through 46-23-1106 MCA.
In September 1976 petitioner was arrested in Spokane, Washington, and charged with a felony. Petitioner pleaded guilty to “misdemeanor theft three” at the suggestion of a Washington parole officer who agreed to recommend to the Montana authorities that he be continued on parole in return for his plea. The recommendation was apparently approved by the Montana authorities. Petitioner was released from the Spokane jail on January 3, 1977. About six weeks after his release he began the journey back to Seattle but was rearrested along the way in Ellensburg, Washington, this time for hitchhiking. He was released in about a week and proceeded to Seattle.
On April 19, 1977, petitioner’s Spokane parole officer issued a report of violation which precipitated petitioner’s eventual return to Montana. The report specified two violations:
“Violation No. L Fisher violated his parole by failing to report as instructed to the Spokane District Office in Spokane, Washington on 4-12-77.
“Violation No. 2-. Fisher violated Special Condition 1 of his parole rules by failing to cooperate fully with the Seattle Indian Alcoholism Program in Seattle, Washington during February and March of 1977.”
The report was written by the same Spokane parole officer who had recommended Fisher’s continuance on parole the previous September in return for his guilty plea. He had apparently permitted petitioner to return to Seattle on the condition that he report to him by mail and participate in the alcohol program.
Following this report, a warrant was issued by the Montana authorities, and on May 5, 1977, petitioner was arrested in Seattle. Petitioner was not given a preliminary on-site or probable cause hearing in Washington or elsewhere. Petitioner was returned to the Montana State Prison on June 16, 1977, following a brief extradition proceeding in Washington in which he was represented by counsel. On June 30, 1977, the Board of Pardons conducted a parole revocation hearing and issued a decision revoking petitioner’s parole. No record was kept of the hearing except for a minute entry noting the revocation.
After his revocation hearing, petitioner was provided with the following four reasons for his parole revocation:
“Your parole was revoked because you failed to report; did not cooperate with the Seattle Indian Alcohol Program to the extent that they terminated you from the program (completion of the program was a special condition of the Board); failed to appear in court on warrant issued for misdemeanor charge; and were convicted of misdemeanor robbery and were given 6 months in the county jail. You were passed to discharge.”
Petitioner presents a number of issues in his petition, but we find one to be dispositive of this case: whether the failure to provide petitioner with a preliminary, on-site hearing violated petitioner’s Fourteenth Amendment right to due process. We find that it did.
Petitioner argues that he was entitled to a preliminary on-site hearing in Washington and that absent such a hearing the revocation procedure followed in this case failed to satisfy the dictates of Morrissey v. Brewer (1972), 408 U.S. 471, 92 S.Ct. 2593, 33 L.Ed.2d 484, as well as the applicable statutes. The State presents two arguments in the face of this. First, the State argues that a parolee may waive the preliminary on-site hearing and that the District Court found such a waiver. Second, the State argues that absent a waiver, petitioner’s parole was properly revoked because conviction of a new offense obviated the necessity of a preliminary on-site hearing.
Addressing the waiver argument first, we note that section 95-3202.1, R.C.M.1947, now section 46-23-1103 MCA, provides in pertinent part:
“Where supervision of a parolee ... is being administered pursuant to the interstate compact for the supervision of parolees . . . the appropriate judicial or administrative authorities in this state shall notify the compact administrator of the sending state whenever, in their view, consideration should be given to retaking or re-incarceration for a parole . . . violation. Prior to the giving of any such notification, a hearing shall be held in accordance with this act within a reasonable time, unless such hearing is waived by the parolee ...” (Emphasis added.)
In the instant case the District Court made the following finding regarding waiver:
“According to the testimony of the Defendant he was afforded counsel in the State of Washington following his arrest and challenged his extradition. It is difficult to determine whether the Petitioner or his counsel at that time made any request or demand for an on-site hearing and it appears that the objections were to the extradition rather than a preliminary revocation of parole hearing. The Court therefore finds and concludes that the Petitioner waived his right to an on-site hearing. ” (Emphasis added.)
After reviewing the transcript of the proceedings in the lower court, we find no evidence to support this conclusion. The failure to demand an on-site hearing cannot be construed to be a waiver of that right nor can such a waiver be presumed to result under these facts. Absent an express waiver appearing in the record, we are left with the State’s assertion that petitioner’s Spokane conviction was sufficient to satisfy the preliminary hearing requirement. This is not so.
In Morrissey the Supreme Court stated the following with respect to the requirement of a preliminary hearing:
“. . . the parolee should be given notice that the hearing will take place and that its purpose is to determine whether there is probable cause to believe he has committed a parole violation. The notice should state what parole violations have been alleged. At the hearing the parolee may appear and speak in his own behalf; he may bring letters, documents, or individuals who can give relevant information to the hearing officer. On request of the parolee, a person who has given adverse information on which parole revocation is to be based is to be made available for questioning in his presence. However, if the hearing officer determines that an informant would be subjected to risk of harm if his identity were disclosed, he need not be subjected to confrontation and cross-examination.” Morrissey, 408 U.S. at 486-87, 92 S.Ct. at 2603, 33 L.Ed.2d at 497-98.
Petitioner was never notified that the State intended to rely on his Spokane conviction to revoke his parole. He was told that he was charged with two violations, both of which he contested and should have been the subject of a probable cause hearing in Seattle where he could have had the opportunity to present witnesses and, perhaps, refute the allegations. With respect to the Spokane conviction, petitioner had already been excused from the revocation sanction for that offense on the condition that he plead guilty and serve a short sentence. For these reasons, petitioner’s parole revocation did not satisfy the requirements of Morrissey or the applicable statutes, and his parole must be reinstated.
The Board of Pardons is given thirty days from the date of this decision to help petitioner develop and to approve a new parole plan for petitioner. If a plan has not been approved within thirty days, petitioner nevertheless shall be released from prison as a parolee subject to the supervision of the appropriate authorities.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, SHEA and SHEEHY concur.
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PER CURIAM.
The above-named applies to this Court for an Order setting the amount of appeal bond.
Petitioner is represented by counsel and this Court declines to accept pro se applications in such circumstances. However, even if this were not so we would not be inclined to grant the request.
|
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ORDER
In 1974, 1975, and 1976, there was widespread newspaper and television publicity concerning Grand Jury investigations concerning alleged improprieties in the operation of the Workmen’s Compensation Division of the State of Montana which could have involved professional misconduct with respect to the respondent. The Commission on Practice, with a concurrence of this Court, appointed counsel to investigate the matter and report back to the Commission. Upon consideration of the report, the Commission caused a formal complaint to be filed against respondent alleging violation of the Canons of Professional Ethics during the period of time between August 1, 1970 through June 30, 1973, with the respect of the relationship of the respondent with one James J. Carden. This complaint was served on the respondent and was subsequently heard on October 4, 1976, before all members of the Commission on Practice. Oral and documentary evidence was pre sented in support of the complaint and oral and documentary evidence was submitted by counsel for respondent in his defense.
Following conclusion of the hearing, the Commission on Practice caused to be made its report, findings of fact and recommendations with respect to the matter, all as more fully set forth in the Commission’s report, findings of fact and recommendations on file herein. In summary, the Commission found that the conduct of the respondents and his relationship with James J. Carden was a clean-cut violation of the Canons of Professional Ethics. The Commission on Practice recommended to the Court that respondent be publicly censured; the respondent be notified that if any breach of the Canons of Professional Ethics should take place in the future, that the records in this proceeding would be fully considered in determining the nature and extent of the punishment resulting from any future violation.
The Commission’s report, findings of fact and recommendations were dated November 12, 1976, and signed by all members of the Commission.
The Commission’s report, findings of fact and recommendations were duly transmitted to this Court for its consideration. Subsequently, the Commission requested that this Court take no action on the same until conclusion of pending legal proceedings against respondent.
Thereafter, at a meeting of the Commission on June 9, 10, and 11, 1977, the Commission reconsidered its recommendation and changed the same to recommend private censure rather than public censure.
Following the conclusion of legal proceedings against respondent, this Court again considered the report, findings of fact and recommendations.
After full consideration of the files and records in this cause, IT IS ORDERED AND ADJUDGED:
1. That the conduct of respondent and his relationship with James J. Carden constituted a violation óf the Canons of Profession al Ethics and the findings of the Commission on Practice with respect thereto are in all respects affirmed and approved.
2. That the original recommendation of the Commission regarding disciplinary action to be taken against respondent dated November 12, 1976, is approved and affirmed and the subsequent change in recommendation to private censure is expressly disapproved.
3. This cause is remanded to the Commission on Practice for execution of this order of pubic censure to be administered by the Commission on Practice in the Courtroom of this Court at the State Capitol at Helena, Montana, within 30 days of the date hereof at a time to be fixed by the Commission.
MR. CHIEF JUSTICE HASWELL, JUSTICES HARRISON and SHEA and R. D. McPHILLIPS, District Judge, sitting for Justice Sheehy, concur.
MR. JUSTICE SHEEHY deeming himself disqualified, took no part in this proceeding.
|
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MEMO OPINION
PER CURIAM:
Original Proceeding.
The application for Writ of Supervisory Control is hereby denied and the proceeding is dismissed.
|
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MR. CHIEF JUSTICE JAMES T. HARRISON,
delivered the Opinion of the Court.
This action was brought in the District Court of Cascade County by Travelers Insurance Company (Travelers) seeking a declaratory judgment determining that the Montana Hardware Company (Montana Hardware) is an insured under an insurance policy issued to the City of Great Falls, Montana, (the City) by the American Casualty Company of Reading, Pennsylvania (American Casualty). The Court found for the defendants and this appeal followed.
The insurance policy issued to the City by American Casualty covered, among other items, the garbage trucks operated by the city sanitation department. Travelers insured Montana Hardware. A personal injury action was filed against Montana Hardware by one Bert Court, an employee of the city sanitation department. It was alleged in that action that Mr. Court was injured while he was moving and emptying Montana Hardware’s garbage cans into the City garbage truck. It was alleged that Montana Hardware was negligent in loading one of the cans with heavy catalogs and in failing to warn Mr. Court of the weight of the can.
American Casualty’s policy covered the loading and unloading of the City’s trucks. This action was brought to declare that the American Casualty policy afforded primary coverage to Montana Hardware for the accident because of the loading and unloading provisions. The district court found that although Montana Hardware was an omnibus insured under the American Casualty policy, two exclusions in the policy precluded coverage to them for the accident.
The pertinent exclusions in the American Casualty policy read:
“(f) under coverages A and B, to any obligation for which the insured or any carrier as his insurer may be held liable under any workmen’s compensation, unemployment compensation or disability benefits law, or under any similar law;
“(g) under coverage A, to bodily injury to or sickness, disease or death of any employee of the insured arising out of and in the course of (1) domestic employment by the insured, if benefits therefor are in whole or in part either payable or required to be provided under any workmen’s compensation law, or (2) other employment by the insured.”
The American Casualty policy defines “insured” as follows:
“The unqualified word ‘insured’ includes the named insured and also includes * * * under coverages A and C, any person while using an owned automobile or a hired automobile and any person or organization legally responsible for the use thereof, provided the actual use of the automobile is by the named insured or with his permission * #
Condition 8 of the American Casualty policy, a Severability of Interests clause, reads:
“8. Severability of Interests: The term ‘the insured’ is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limits of the company’s liability.”
This appeal can be disposed of by the determination of one issue. Whether the words “the insured” in exclusions (f) and (g) above, refer to an employee of any insured, including the named insured or any omnibus insured, or only an employee of the particular insured claiming coverage. Thus, in this case if “the insured” means any insured Mr. Court is within the exclusion for he was an employee of the named insured and consequently the American Casualty policy would not cover Montana Hardware. However, if “the insured” means the insured claiming coverage then Mr. Court is not within the terms of the exclusion for Montana Hardware is claiming coverage as an omnibus insured and Mr. Court is not an employee of Montana Hardware. In this latter case Montana Hardware would be covered by American Casualty.
This is a case of first impression in this Court. It is a well litigated issue and the cases in the other jurisdictions are in irreconcilable conflict. 50 A.L.R.2d 78, 97, and Later Case Service. It will serve no purpose to cite all the cases dealing with the question.
The line of authority supporting Travelers’ contention that “the insured” means the insured claiming coverage appears to base its position on the following reasoning. It is asserted that the underwriters intended Travelers’ construction and when construing a contract it is the intention of the parties which controls. Second, if the term is ambiguous it must be construed against the insurance company. Finally, Travelers contends that the purpose of the exclusions requires their contended construction.
To support the contention that their construction was that intended by the parties, Travelers asserts that although the policy defines “insured” as including both the named insured and any omnibus insured, the use of the word “the” before the word “insured” in exclusive (f) and (g) makes the meaning of “insured”. This construction, it is contended, was supposed to have been made clear by the addition of the severability clause. Risjord and Austin, Who is “The Insured,” 24 University of Kansas City L.Rev. 65 (1955); Brown and Risjord, Loading and Unloading: The Conflict Between Fortuitous Adversaries, 29 Insurance Counsel Journal, 197 (1962).
If the term is ambiguous, construing it as meaning only the insured claiming coverage broadens the coverage of the policy for it narrows the appelieation of the exclusion. Walker v. Fireman’s Fund Insurance Co., D.C., 268 F.Supp. 899 (1967). Consequently Travelers asserts that its construction construes the terms against the insurer.
Apparently the purpose of the exclusion clauses in question is to avoid double coverage which would result from coverage from the employer’s workmen’s compensation insurance and the liability insurance policy. General Aviation Supply Co. v. Insurance Company of North America, 181 F.Supp. 380 (E.D.Mo., 1960), aff’d, 283 F.2d 590 (8th Cir., 1960). Therefore it follows, Travelers asserts, that since Montana Hardware did not cover Mr. Court with workmen’s compensation insurance there is no double coverage and Mr. Court should not be within the terms of the exclusion.
The reasoning of the cases finding the term “the insured” meaning “any insured” seems to be as follows. The policy defines “insured” as including both the named insured and any omnibus insureds'. It is asserted that Travelers’ contention is unreasonable in that it would result in granting more protection to an employee of an omnibus insured than an employee of the named insured when it was the latter who paid the premiums. Further, it is contended that the term is not ambiguous and therefore there are no grounds for construing it against the insurer. Finally, the intent of the policy is to provide protection for the general public. All employees would have workmen’s compensation and consequently double coverage exists under the construction asserted by Travelers.
We find we have here a case where “On facts, strikingly simple, neither complex nor conflicting, we have again the problem of an Insurer who has written the policy and taken the assured’s premium urging him to go elsewhere, tentatively if not finally, because another insurer is, or ought to, or may be, liable for the whole, half, or part a loaf. In the process the moving insurer generally garbs itself in the appealing robes of some assured so that, casting itself in a strange role, it asserts what is so often denied that the policy should be liberally construed and, by a bare toe hold, manages to make itself enough of a party to force a construction of another assured and which, under no circumstance, was made for its benefit. (Citing cases.)
“So it is here. Coming as it does the accident and the assureds seem all but forgotten as the two Insurers match clause against clause, coverage against exclusion, claim against denial, in this battle between fortuitous adversaries.” American Fidelity & Cas. Co. v. St. Paul-Mercury Indem. Co., 248 F.2d 509, 511, (5th Cir., 1957).
We find the authorities supporting American Casualty to be more persuasive. It is the intent of the parties which should determine how the term is construed. It is unreasonable that the City would intend to pay a premium to provide more coverage to an omnibus insured than the City provides itself. This is true even if persons in the insurance industry contend the intent is otherwise.
The issue has been around for many years. If the industry intended the construction asserted by Travelers the addition of two words, “claiming coverage,” would have made it clear.
The policy defines “insured.” The definition applies to the unqualified use of the word “insured.” “Unqualified use" refers to those portions of the policy which restrict themselves to the named insured. We are not moved by the contention that the word “the” qualifies “insured.” The plain and logical meaning of “the insured” appears clear.
If it were not for the prior inconsistent decisions on the issue we would be convinced that there is no ambiguity in the term. If there is ambiguity we do not think the rule of construing the policy against the insurer is applicable. Travelers is a stranger to the policy. It is a contract between the City and American Casualty. It is not a suit between either the injured party or the insured and the insurer. Travel ers should get no benefit' from construing the policy against American Casualty. Any ambiguity should be resolved in favor of the named insured who must eventually bear the cost of excess coverage. G. C. Kohlmier, Inc., v. Mollenhauer, 273 Minn. 126, 140 N.W.2d 47 (1966).
It is asserted that the severability clause makes it clear that the intention of the contracting parties was to limit the exclusion to the insured claiming coverage. The authorities have gone both ways in construing the effect of the severability clause. We do not find the severability clause to be an express clear and concise statement of the intent of the parties. The application of the severability clause is ambiguous. We cannot do as Travelers requests and say that an ambiguous clause in the policy clears up ambiguity in another clause. This is especially true where we have trouble finding any ambiguity in the term “the insured” to begin with. But in any case ambiguity here should be resolved in favor of the named insured and against the omnibus insured. Thus the severability clause should be construed in favor of American Casualty.
The judgment of the lower Court is affirmed.
In view of our determination it is not necessary to discuss other factors raised by respondents.
MR. JUSTICES HASWELL, ADAIR, JOHN CONWAY HARRISON and CASTLES, concur.
|
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Molly Burke Herrin appeals from a determination of the District Court of the First Judicial District, the Honorable Gordon R. Bennett presiding without a jury. This action arose when Keith W. Herrin petitioned the District Court for an order directing that certain payments be made to him, pursuant to the terms of the divorce decree which dissolved the parties’ marriage. In dispute is the interpretation of a property settlement agreement, which incorporated a stock purchase-and-sale agreement, and which itself was incorporated into a divorce decree.
The facts leading to this dispute are as follows. On February 14, 1969, petitioner Keith W. Herrin entered into an agreement with his brother Gordon R. Herrin under the terms of which Keith was to sell and Gordon was to purchase 481 shares of capital stock in Herrin Ranch, Inc. Two weeks later, on February 28, 1969, respondent filed a complaint for divorce from appellant Molly Burke Herrin, then his wife. On June 20, 1969, appellant and respondent signed a property settlement agreement which incorporated the agreement made between respondent and his brother. In turn, the property settlement agreement was incorporated into the divorce decree, entered August 18, 1969, under the terms of which respondent was awarded custody of the parties’ six children, all of whom were minors at the time. The youngest child, Keith W. Herrin, Jr., who was blind and required extraordinary care, died at age 11, on April 6, 1970. As will become apparent, these latter facts are significant in light of the terms of the agreements in dispute.
The property settlement agreement reads in pertinent part as follows:
“4. Second Party [Keith Herrin] hereby makes to First Party [Molly Herrin] the following qualified or conditional agreement of that certain ‘STOCK PURCHASE AND SALE AGREEMENT’ between First Party and one Gordon T. Herrin, dated the 14th day of February, 1969, the subject matter thereof being the 481 shares of the capital stock of Herrin Ranch Inc., a Montana corporation, formerly held by Second Party, a copy of said last mentioned agreement being hereto attached, marked Exhibit A, and made a part hereof. The conditions and qualifications of said assignment are as follows ... If the said Keith W. Herrin, Jr., dies during the term of said agreement, exhibit A hereto, or while there is any money or property left in any trust aforesaid, then said Trust shall cease and all of the property and income and corpus of said trust shall revert to Second Party, and automatically be and become his sole property.”
The omitted portion recites other conditions inapplicable to the problem here. The circumstances which would have called them into play, appellant’s death or remarriage, never occurred.
Appellant’s construction of the above is short and to the point. The antecedent condition, Keith, Jr.’s death, was fulfilled; thus, consideration of the last condition of paragraph 4 became imperative. As appellant correctly states, there was never any trust, such that, upon Keith Jr.’s death, it should cease and its property and income revert to respondent. The conditions requiring the creation of a trust, i.e., appellant’s remarriage or death, never occurred; appellant neither remarried nor died, so no trust was established. Because no trust was established, it could not cease; there being no trust, there was no property and income to revert to respondent. The payments forthcoming under the terms of the stock purchase-and-sale agreement, claims appellant, were assigned to her personally and not as a trustee, through the property settlement agreement. Because they were so assigned and because no trust was created, appellant argues that she is entitled to continue receiving the payments made by Gordon T. Herrin under the stock agreement.
Appellant argues that the mandate of section 13-704, R.C.M. 1947, governs this case. There it is provided that “[t]he language of a contract is to govern its interpretation, if the language is clear and explicit, and does not involve an absurdity.” So, too, is section 13-705, R.C.M.1947, applicable; that statute reads in its entirety, “[w]hen 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.” According to appellant, the clear and explicit language of the instrument dictates that she continue receiving the payments. The conditions requiring creation of a trust never came to pass; because there was no trust, reversion of its corpus is an impossibility.
The District Court judge acknowledged that Molly Herrin “contends that condition 5 actually requires a trust to have been created to entitle petitioner [Keith Herrin] to the payments.” Relying on sections 13-707 and 13-702, R.C.M. 1947, requiring consideration of the document as a whole and requiring that its interpretation give effect to the parties’ intention as it existed at the time of contracting as evidenced by the language of the instrument, Judge Bennett concluded that it was drafted for the benefit of the boy, Keith, Jr., not the appellant, and therefore that, because the child had died and was no longer in need of its benefits, the payments were to be made to respondent herein. The court determined that:
“In light of the whole separation agreement, it is clear that at the time the agreement was created, the parties intended that the assignment be for the benefit of Keith, Jr., and if he died, the purpose of the assigment would fail and the payments were to revert back to the petitioner [Keith Herrin.] There is no indication that the parties intended the payments to be for the benefit of the respondent [Molly Herin] considering the language of the entire instrument and the conditions in paragraph 4.”
In reaching that conclusion, the judge relied on the following interpretation of the property settlement agreement under consideration:
“The qualifications and conditions as interpreted by this Court are:
“5. If Keith, Jr., dies either during the term of the stock purchase and sale agreement or while there are assets in any trust created pursuant to paragraph 4, then all property pursuant to the stock purchase and sale agreement, and all the corpus and income in any trust pursuant to paragraph 4 reverts to the petitioner. ” (Emphasis added.)
The emphasized portion of the above is troublesome. The actual language of the corresponding portion of paragraph 4 does not include any reference to “all property pursuant to the stock purchase and sale agreement”. That has been interpolated by the District Court. Those words cannot be found in the original; neither can anything remotely correspondent to them be found there. If the language of the instrument is to control, as it must according to statutory rules of interpretation of contracts, this interpolation is improper.
Section 93-401-15, R.C.M.1947, states the general rule that in construing an instrument, a judge’s office is simply to ascertain and declare what it contains in terms or in substance, not to insert omitted matter or omit matter inserted. See United States v. Seaboard Surety Co. (D. Mont. 1938), 26 F.Supp. 681, 688, aff’d sub nom. Watsabaugh & Co. v. Seaboard Surety Co. (9th Cir. 1939), 106 F.2d 355. A court has no authority to disregard the express language used by the parties. E.g., Williams v. Insurance Company of North America (1967), 150 Mont. 292, 295, 434 P.2d 395, 397. It is reversible error for the District Court to insert into a contract language not put there by the parties. See Danielson v. Danielson (1977), 172 Mont. 55, 560 P.2d 893.
It is true, as respondent emphasizes, that paragraph 4 itself begins with specific reference to “the following qualified or conditional assignment” of payments to be made by Gordon Herrin under the stock purchase-and-sale agreement. Appellant does not contest that qualifications and conditions were elaborated in the instrument. Two of the conditions, those of appellant’s death or remarriage, never came to pass. The other condition, that of Keith, Jr.’s death, was fulfilled so as to activate the provision in dispute here. The specific language of the remainder of that sentence says “said Trust shall cease”. There never was a trust. The language of the instrument is “all of the property and income and corpus of said trust shall revert”. Again, there never was a trust, the property, income and corpus of which could revert to anyone. The language of the document controls its interpretation, and appellant’s interpretation is correct on this point.
Of course, the problem is that the sentence contains an unspoken presumption — that there is or will be a trust which will be susceptible of cessation and the corpus and income of which susceptible of reversion. The sentence bespeaks careless draftsmanship. Nonetheless, the language of the instrument binds the parties, absent agreement, i.e., another contracts of sorts, that it not do so. It is the policy of this Court not to rewrite contracts for disgruntled litigants. While a court may interpret contracts which are open to interpretation, a court may not make a new on.e for the parties and may not alter or amend one which the parties themselves have made. E.g., Danielson v. Danielson, 560 P.2d at 895, and cases cited therein.
We are aided in our decision to reverse, albeit somewhat reluctantly, the District Court, by the fact that if appellant is deemed unentitled to the payments made under the stock agreement, she takes nothing but her own personal property under the property settlement agreement. Respondent sold all of his shares of the capital stock of the ranch to his brother two weeks before filing for divorce from his wife of some twenty years. The ranch was the only substantial asset of the marriage; it had been the parties’ home for the duration of their marriage; Molly had contributed to the marital unit and to the upkeep of the ranch as a homemaker. She herself received no maintenance money; she was not awarded the family home or any part of the ranch property; she kept only her own personal property. While it is true, as respondent asserts, that she received money for support of the children and that she was able to rent the family home for a ‘‘low” monthly sum, which rental was deducted each month from the payments made by Gordon Herrin under the stock purchase-and-sale agreement, the property settlement agreement gives nothing to appellant except her personal belongings and, she argues, the right to receive moneys paid under the stock agreement.
The judgment of the District Court is reversed. The payments from the stock purchase-and-sale agreement belong to appellant herein; the money paid to the District Court during the pendency of the action below and all subsequent payments are to go to appellant.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, SHEA and SHEEHY concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
Franklin Norman Schenk was charged with the crime of murder in the first degree in the district court of Toole County, and upon jury trial he was found guilty of murder in the second degree. The appellant, Mr. Schenk, was charged in connection with the gunshot death of his wife, Betty Bogdanski Schenk, and he appeals from that conviction and from a denial of his motion for a new trial, alleging a number of specifications of error.
From the record it appears that on the afternoon of November 24, 1966, Franklin and Betty Schenk and Mrs. Schenk’s three children by a previous marriage ate the traditional Thanksgiving dinner with Melvin and Josephine McCann, neighbors of the Schenks’. Melvin McCann testified that liquor was present and consumed before and during dinner, the amount being two. six packs of beer and a half, gallon and a fifth of red currant wine. It appears from the testimony of Mr. McCann that the major portion of that liquor was consumed by Mr. and Mrs. McCann and Mr. Schenk; Mr. Mc-Cann testified that Betty Schenk drank “just a half a bottle of beer and a sip of wine.”
After dinner Betty Schenk returned to the Schenk residence, appellant and the McCanns proceeded downtown where the appellant continued to drink beer at two bars from approximately 7:00 p. m. until the appellant returned home sometime after 11:00 p. m. Witnesses testified they saw and talked to the appellant downtown between 11:00 and 11:30 p. m.
Mrs. Schenk and her three children retired for the night after her oldest son returned home from the movie. The three children testified they were awakened by loud noises which Christine Bogdanski identified as shots. Two of the Bogdanski children testified to hearing four shots and talking between the shots, but no talking after the last shot. All three children testified to seeing the appellant enter their bedroom and telling them to get a doctor because their mother had been hurt.
Donald Bogdanski also testified to seeing the appellant get the rifle from behind the refrigerator where it was kept. Paul and Christine Bogdanski also testified to seeing the appellant throw the rifle across the kitchen.
Dr. Bichard Beighle testified he arrived at the Schenk residence at approximately 12:30 a. m. and found the appellant on the bed next to Mrs. Schenk; that he examined Mrs. Schenk and ascertained that she was dead and had been dead from one to twenty minutes.
Dr. John Pfaff, Jr., testified death was caused by severance of the spinal cord due to a gunshot wound in the side of the neck. He also testified that Mrs. Schenk had received a beating on the night of November 24, 1966.
Sheriff Burke questioned the appellant at the Schenk residence and also gave him the Miranda warnings. Schenk was then taken to the Toole County jail and booked. The follow ing day the Toole county attorney visited the appellant in his cell stating to the appellant that he, the county attorney, wanted to talk to him in connection with the shooting incident of Mrs. Schenk. The county attorney then gave the appellant the Miranda warnings which the appellant said he understood. The appellant then indicated he was willing to make a statement and said he didn’t think he needed an attorney at that time.
The appellant gave the county attorney an oral statement and about one half hour later the appellant was taken into the interrogation room so that the county attorney’s secretary could take a written statement. Before starting the interrogation, the county attorney again advised the appellant of his rights; the appellant answered that he understood and that he did not want an attorney.
Upon this appeal appellant first contends that it was error for the trial court to deny discovery of evidence in the hands of the prosecution. This Court can find no merit in such contention. Under the common law there is no right to have inspection of evidence in the hands of the prosecution. The King v. Holland, 4 Durn. and East 691, 100 Eng.Rep. 1248. (1792). Also in Montana at the time of trial of this case the same rule prevailed for there was no constitutional provision or specific statute authorizing provision. State ex rel. Keast v. District Court, 135 Mont. 545, 342 P.2d 1071 (1959). Compare Pinana v. State of Nevada, 76 Nev. 274, 352 P.2d 824 (1960), wherein it was held that in the absence of statute allowance of inspection rests within the discretion of the trial court upon a showing of proper cause. Nothing in the affidavit of the appellant’s attorney shows a proper cause for allowing discovery. The affidavit alleges no more than that there “is good cause for discovery.” Note also People v. Wilkins, 135 Cal.App.2d 371, 287 P.2d 555 (1955), in which it was held that the materiality of the records in question must be shown in order to have discovery. The trial judge before whom the situation could most easily be presented was better able to determine what was proper, and there is nothing in the record to support appellant’s contention that the denial of inspection prevented him from having a fair trial.
The appellant also contends that he was denied due process of law by the failure of the court to timely appoint defense counsel. The record shows that Mr. John Bayuk, who was eventually appointed to represent the appellant, fully expected to be appointed counsel. Mr. Bayuk informed the county attorney the appellant was his client in a civil action and that he, Mr. Bayuk, was going to represent him. Mr. Bayuk also saw and talked to the appellant on a number of occasions prior to his formal appointment as counsel. The record also shows that at the arraignment on December 29, 1966, the appellant, upon being asked by the court, whether he was represented by counsel, replied “yes”, and further replied “yes” when asked whether Mr. Bayuk had been retained by appellant as counsel. Later, on January 3, 1967, the court ascertained that the appellant was indigent and formally appointed Mr. Bayuk and Mr. David DeGrandpre as counsel to represent the appellant.
A defendant in a criminal proceeding is entitled to counsel at every critical stage of the proceedings [United States ex rel. Russo v. State of New Jersey, 351 F.2d 429 (3 Cir. 1965); Escobedo v. State of Illinois, 378 U.S. 478, 84 S.Ct. 1758, 12 L.Ed.2d 977 (1964)] “where rights may be preserved or lost, regardless of whether prejudice is shown.” People v. Sykes, 23 A.D.2d 701, 258 N.Y.S.2d 275 (1965). Compare White v. State of Maryland, 373 U.S. 59, 83 S.Ct. 1050, 10 L.Ed.2d 193 (1963) and Commonwealth ex rel. Mullenaux v. Myers, 421 Pa. 61, 217 A.2d 730 (1966).
That appellant was represented by counsel at every critical stage of the proceeding is clearly shown in the record!' It is true he was not represented by appointed counsel, but the: right is one to be represented, not a right to be represented by appointed counsel. Mr. Bayuk saw and talked to the appellant within a week of appellant’s arrest and also talked to him a number of times before the filing of the information or the arraignment. Mr. Bayuk also had his secretary secure a copy of the justice court complaint charging the appellant, and she secured it within two days following the day it was filed. From Mr. Bayuk’s actions it is clear to this Court that he was representing the appellant, and was representing him prior to court appointment. As stated previously, the appellant admitted to the court at the arraignment that he himself had employed Mr. Bayuk to represent him.
The appellant also asserts that he did not intelligently waive his right to counsel at the time he gave his statement. “The accused may, of course, intelligently and knowingly waive his privilege against self-incrimination and his right to counsel either at a pretrial stage or at the trial.” Escobedo v. State of Illinois, supra, 378 U.S. p. 490, n. 14, 84 S.Ct. p. 1765. Whether there has been an intelligent and knowing waiver depends upon the particular facts and circumstances surrounding the case, including the background, experience and conduct of the accused. In re Woods, 64 Cal.2d 3, 48 Cal.Rptr. 689, 409 P.2d 913 (1966); Johnson v. Zerbst, 304 U.S. 458, 58 S.Ct. 1019, 82 L.Ed. 1461 (1938).
From the record it is clear that appellant was warned a number of times of his right to remain silent and of his right to counsel; Sheriff Burke warned him of his rights at the scene of the shooting; the county attorney warned him of his rights the following day when he told appellant he would like to speak to him about the shooting incident; and the county attorney again warned the appellant of his rights at the taking of the written statement. The appellant’s waiver of his right to counsel during the questioning by the county attorney is shown in the written statement itself; the written statement containing such waiver was made in the presence of the county attorney, Sheriff Burke and the county attor ney’s secretary. We can find no merit in appellant’s contention that he did not intelligently waive his right to connsel.
Appellant’s counsel raises a point obliquely in his brief concerning the use of the defendant’s signed statement during the trial to which no proper or timely objections were ever made. We use the word “obliquely” raised because counsel refers to an affidavit of one juror filed in this Court months after the trial and such alleged error is so far removed from the rules of practice and rules on appeal of this or any other appellate court that we need not dwell upon the matter. Even at the time of the hearing on the motion for new trial counsel informed the district court that he was basing the motion on the record and the point here attempted to be raised was not then in the record. No error was committed.
The appellant further contends that it was error to have in chambers voir dire of three prospective jurors when he was not present in chambers. The standard that must be followed is that a defendant must be present when his presence “# * * bears, or may fairly be assumed to bear, a relation, reasonably substantial, to his opportunity to defend. Nowhere in the decisions of this court is there a dictum, and still less a ruling, that the Fourteenth Amendment assures the privilege of presence when presence would be useless, or the benefit but a shadow. * * *
“So far as the Fourteenth Amendment is concerned, the presence of a defendant is a condition of due process to the extent that a fair and just hearing would be thwarted by his absence, and to that extent only.” Snyder v. Commonwealth of Massachusetts, 291 U.S. 97, pp. 106-108, 54 S.Ct. 330, 333, 78 L.Ed. 674 (1934).
Appellant’s counsel left the appellant in the courtroom after requesting the court to hear the voir dire of the three prospective jurors in chambers. Eventually the three jurors were disqualified, so the question of appellant’s being present was rendered moot.
We have previously considered somewhat similar situations in State v. Peters, 146 Mont. 188, 405 P.2d 642, and we there observed that a defendant’s rights are violated only if he is prevented from being personally present when the jury is hearing his case, or is prevented from attending other proceedings where his presence is essential to a fair and just determination of a substantial issue. Since neither situation exists here we find no merit in appellant’s contention.
Upon review of the other specifications of error raised by the appellant we find them to be without merit.
The judgment is affirmed.
MR. JUSTICES HASWELL, ADAIR, CASTLES and JOHN CONWAY HARRISON, concur.
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MR. JUSTICE DOYLE
delivered the Opinion of the Court.
This is an appeal by defendant following his conviction in the District Court of Lewis and Clark County upon a charge of grand larceny.
The charging part of the information against the appellant is as follows:
“CHARLES FAIRBANKS is accused by the County Attorney of Lewis and Clark County, Montana, by this information of the crime of GRAND LARCENY committed as follows: That at the County of Lewis and Clark, in the State of Montana, on or about the 17th day of June, A. D., 1960, and before the filing of this information, the said did wilfully, unlawfully and feloniously steal, take and carry away a 55 Four-door Oldsmobile Serial No. 557-K13488, 60 Tab — 43-00639, License No. 5-7529- — 1959 Plate, the property of Placer Motors, Inc., of the value of $850, with the intent in him, the said CHARLES FAIRBANKS then and there had and having to appropriate the same to his own use and benefit and to permanently deprive the true owner thereof.”
The information also charged a previous conviction of a felony.
To constitute larceny the first essential is that there be a “taking”, that is, the thing which is the subject of the crime must be taken from the possession of the owner into the possession of the thief. The taking, in order to support a charge of larceny, must be against the will of the owner or at least against the consent, in other words, the act of taking must be a trespass against the owner’s possession.
The second essential element in the crime of larceny is the asportation of the thing which is the subject matter of the offense, that is, the taking must be followed by a carrying away or asportation as to supersede the possession of the owner for an appreciable length of time, be it ever so short. To constitute asportation, the thing taken must have been in the entire or absolute possession of the taker.
From territorial days in Montana, the rule has been and still is that the mere possession of personal property by defendant soon after it has been stolen is not sufficient of itself to justify his conviction. Territory v. Doyle, 7 Mont. 245, 14 P. 671; State v. Sullivan, 9 Mont. 174, 22 P. 1088.
In the case of State v. Smith, 135 Mont. 18, 334 P.2d 1099, this court quoted with approval from State v. Labbitt, 117 Mont. 26, 32, 156 P.2d 163, and stated: “ ‘Every taking and carrying away by one person of the personal property of another is not larceny even though it is done without right or claim of right and for the purpose of appropriating the property to the use of the taker. Super-added to the wrongful taking there must be a felonious intent, for without it there would be only a bare trespass which, however aggravated, would not be crime. It is the criminal mind and purpose going with the act which distinguishes a criminal trespass from a mere civil injury.’ 32 Am.Jur., Larceny, § 36, p. 925.”
Again in State v. Smith, supra, the court quoted from State v. Labbitt, and held: “ ‘To constitute larceny, the party committing the offense must have the view of converting the property to his own use permanently, or depriving the owner of his property permanently”
This court is confronted with a record that discloses that at the time of the arrest of the appellant there were two Oldsmobiles of the year 1955 identical in all respects save as to color and there were two men present, the appellant and Francis E. Molmar, both of whom were arrested and were taken to the Lewis and Clark County jail.
On June 29, 1960, the chief deputy county attorney for Lewis and Clark County made an affidavit relating to Francis P. Molmar, the pertinent part of which is as follows: “That the said witness [Molmar] was in the company of defendant * * * at the time of the commission of the crime set forth in the Information filed herein; that said witness has made a written statement regarding the facts in said case, and from all of the evidence in the possession of the County Attorney at this time, the County Attorney does not believe that the said witness is an accomplice to the crime.”
The record does not disclose that Molmar ever took the witness stand and testified either for or against the appellant, and the sole reference that we have to Mr. Molmar is contained in this affidavit and in the testimony of the state highway patrolman, Mr. Al Mues, who arrested both the appellant and Mr. Molmar.
The record is absolutely silent as to how the two Oldsmobile automobiles were driven to the coulee south and west of Helena. The record is absolutely silent as to who owned the other car. The only matter contained in the record is that the blue and white Oldsmobile was owned by Placer Motors and that the appellant was removing some bolts in and around the radiator of the car with the brown and white Oldsmobile parked contiguous to the car which the appellant was working on. It places this court in the position of having to guess and speculate as to whether the appellant or Molmar removed the car from the sale lot of the Placer Motors and transported it to the place where the officers discovered it. The actual taking and asportation of the car in question is not proven in any sense of the word.
The transcript in this cause consists of 78 pages and but 16 pages are devoted to the actual testimony of the witnesses in connection with the crime with which the appellant is charged. But on the contrary 32 pages are devoted to proving the prior conviction of the appellant.
It is a fair statement of the law that when property is taken with the intent of abandoning the property rather than returning it to the owner, the defendant is guilty of larceny. ¥e cannot determine from the record whether the appellant or Molmar took the ear from the Placer Motors. This court has no right to speculate on the guilt of the appellant any more than did the jury in this case, as there was a total lack of credible evidence showing that the defendant either by himself or with the aid of Molmar took the Oldsmobile, transported it to the place where it was found, or whether Molmar took the car and transported it to the place where it was found, or whether Molmar took the car and transported it to the place where it was found and had the appellant working on it.
Viewed in its entirety the evidence relied upon by the prosecution is insufficient both in quality and quantity to support the verdict of the jury. It is unconvincing, leaves too much to speculation and conjecture and is equally consistent with a hypothesis of innocence as that of guilt. True, one possessed of only normal curiosity might be suspicious and surmise that Fairbanks had something to do with the Oldsmobile car, but mere suspicions, however strong, have not yet been accepted in lieu of proof beyond a reasonable doubt.
When a conviction is sought upon circumstantial evidence, the proof must be such as not only to authorize a belief in the guilt of the accused, but also to exclude every other reasonable hypothesis. State v. Mullins, 55 Mont. 95, 99, 173 P. 788, 789.
Convictions may not be founded upon conjectures however shrewd, nor upon probabilities however strong, State v. Taylor, 51 Mont. 387, 153 P. 275, but only upon evidence which establishes the guilt of the accused beyond a reasonable doubt, that is, upon proof such as to logically compel a conviction of charges true. State v. Postal Tel. Cable Co., 53 Mont. 104, 161 P. 953; State v. Riggs, 56 Mont. 393, 185 P. 165; State v. Riggs, 61 Mont. 25, 201 P. 272; State v. Gilbert, 126 Mont. 171, 246 P.2d 814.
In all of the above-cited decisions this court has recognized and applied the rule that unless the evidence fully meets the tests therein announced, it is insufficient to sustain a conviction.
The trial judge, as is reflected, by the record, was apprehensive of the sufficiency of the proof to sustain the defendant’s conviction.
For these reasons the judgment of the District Court is reversed and the cause remanded for a new trial.
MR. JUSTICE ADAIR and the HONORABLE W. W. LESSLEY, District Judge, sitting in place of MR. JUSTICE JOHN C. HARRISON, concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
This is an action commenced by the plaintiff bank an in-terpleader, to compel the defendants to settle their respective right to certain real estate in which the appellant was a seller and the respondent was a buyer. The case was tried without a jury and judgment was entered in favor of the respondent buyer. From this judgment the appellant seller appeals.
The sole issue presented is whether the trial judge abused his judicial discretion by denying the appellant, Billie Williams, any remedy in this cause of action. The contract here originated when the appellant, Billie Williams, and her former husband, Richard Williams, sold the property involved subject to a contract to a firm known as Northwest Limited. The purchaser’s interest in Northwest Limited was transferred to James and Darla Sadler thereafter. The appellant alleges that after the transfer of the property to the Sadlers, payments were frequently late and at times the Sadlers had more than one payment delinquent.
A notice of default was mailed to the Sadlers and received by them; and they in turn paid to the escrow agent the amount due on a Friday afternoon after three o’clock p.m. on the 30th day of the default. Thereafter on the 33rd day of default, a Monday, Billie Williams demanded that the escrow agent close the escrow, as payment had been made after 3:00 p.m. on the 30th day. As a result, the escrow agent filed this interpleader action.
The appellant, Billie Williams, is a real estate loan officer with the First Bank-Western, Missoula, Montana, which is affiliated with the escrow agent, the First Bank-Southside at Missoula, Montana.
Geraldine C. McLaughlin is the mother-in-law of James H. Sadler, and is the owner/operator of Montana Leasing, a commercial property management firm that manages the real estate subject to the Williams/Sadler contract. All payments on the contract were made by the leasing company from rents received from the property. At the time of the default, there was a negative cash flow of $320 a month, partially caused by the increase in taxes from $1,200 to $3,200 a year on the property.
The Sadler contract includes a mortgage at the Western Federal Savings and Loan and the appellant Williams receives an interest override due to the fact that the Sadler contract is at a greater interest rate than the Williams’ Western Federal Savings and Loan mortgage. The payment in question amounts to $1,046.80 in principal and interest and $355.50 per month for a tax and insurance budget. After payment to the First Bank-Southside, the bank distributes the whole payment to Billie Williams as per her instructions.
Mrs. Williams claims by not receiving payment on the first of every month, there is a burden placed on her as she is charged a $15 late penalty payment on the outstanding mortgage at the Western Federal Savings and Loan. In reply, the Sadlers complained that the tenants pay their rents late; thus causing them to make their payments late on occasion. There is testimony that the Sadlers had requested that they be allowed to divide the payment, to allow the Sadlers to pay the payment to Western Federal Savings and Loan directly, thus saving any late penalty payments to the appellant. The appellant refused to go along with this plan of making payment.
Much is made in the briefing of the case and in the testimony at the time the cause was heard, of the fact that Mr. Sadler is an attorney. However, there is nothing in the record to substantiate any allegations that Mr. Sadler uses his position as an attorney to his own advantage. There was no client/attorney relationship existing between the parties and the record fails to reveal any impropriety on the part of Mr. Sadler in handling his debt obligations to Mrs. Williams. The testimony clearly shows that the economic factors of the rental property in the building involved is such that the Sadlers have to get the rents to pay off Mrs. Wil liams and, the economy being what it is, there are periods when it is not possible to pay the obligations on the schedule that the appellant Williams desires.
The trial court found that since the payment was made on the 30th day, there was no default. The position of the appellant is because Sadler knows of the 3:00 p.m. cutoff time at the bank on Friday afternoon and made payments after the 3:00 p.m. cutoff time, that she should have some relief from the court, either (1) the court should have declared the contract as clear, unambiguous, and that Sadlers forfeited their rights in the contract by failure to remedy the contract within the 30-day allowed therein; or (2) that the court should have reformed the contract to provide for a late-payment penalty to correct the deficiency of the contract and to enforce compliance by the defendant, Sadler; or (3) deny a recovery under either (1) or (2) above and invoke the court’s inherent equitable power to order the officer of the court to perform legal and contractual duties in a manner consistent with the contract and the ethical requirements of the profession.
This Court has stated on numerous occasions that it will not disturb the judgment of the District Court unless evidence preponderates against it. Our standard of review in non-jury cases is simply to determine whether there was substantial evidence to support the findings of the District Court, see Hayden v. Snowden (1978), 176 Mont. 169, 172, 576 P.2d 1115, 1117. Here the evidence was clear and un-controverted. The payment required by the notice of default was paid on the 30th day of the default period and there was nothing in the contract concerning a payment after 3:00 p.m. as being late. At the time of the payment on the 30th day the breach of contract was cured and under the terms of the contract in the paragraph set out for default, it clearly states that if the default has been cured within thirty days:
“No default, termination, cancellation, or acceleration shall be worked.”
The District Court was correct when it found no default and it was correct in rejecting the appellant’s request for late penalty payments, for if such had been granted, the court would be rewriting a contract which it is not permitted to do.
Judgment of the District Court is affirmed, and on this record each party shall pay their own attorney’s fees.
MR. JUSTICES DALY, SHEA, MORRISON and SHEEHY concur.
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JUSTICE McDONOUGH
delivered the Opinion of the Court.
Adeline Garcia appeals from a judgment of the Workers’ Compensation Court which held that she was not entitled to compensation beyond the amount paid.
Although several issues are submitted on appeal, we find only one necessary for our review:
Whether substantial credible evidence supports the Workers’ Com pensation Court’s determination that Garcia was not entitled to compensation beyond the amount paid.
On July 18,1988, Garcia was injured while filing some documents in the bottom drawer of a filing cabinet while employed by the Department of Labor and Industry. On August 16, 1988, Dr. Lovitt performed a lumbosacral fusion at the LS-S1 level of Garcia’s spine. Garcia has not returned to work since July 18,1988. It is undisputed that Garcia has a long history of back problems. The State Fund first refused but then accepted Garcia’s claim and made payments under the reservation of rights in § 39-71-608, MCA. After an investigation was completed, it terminated the claimant’s benefits.
Garcia filed a petition with the Workers’ Compensation Court contesting the termination of benefits. A trial was held on March 4, 1991. The hearing examiner executed a proposed judgment on August 8, 1991. The Workers’ Compensation Judge adopted the proposed findings of fact and conclusions of law and proposed judgment of the hearing examiner. This appeal followed.
Our standard for reviewing a decision of the Workers’ Compensation Court is to determine if there is substantial evidence to support the findings and conclusions of that court. Where there is substantial evidence to support the Workers’ Compensation Court, this Court cannot overturn the decision. Coles v. Seven Eleven Stores (1985), 217 Mont. 343, 347, 704 P.2d 1048, 1050; Wood v. Consolidated Freightways (1991), 248 Mont. 26, 28, 808 P.2d 502, 504.
I
The Workers’ Compensation Court found that Garcia began suffering from low back pain in the mid-1970’s. She was eventually diagnosed with degenerative disk disease, which is a wear and tear process that occurs with aging. On June 10, 1986, Garcia was seen by Dr. Teal for a gradual increase in pain over the past decade. She was treated with medication, physical therapy and exercise. On October 26, 1987, she began seeing Dr. Lovitt. On June 17, 1988, Garcia and Dr. Lovitt discussed the possibility of surgery. On July 18, 1988, the day of the injury, Garcia saw Dr. Lovitt. They again discussed the possibility of surgery. Dr. Lovitt considered Garcia’s July 18,1988 visit as a flare-up in her continuing symptoms. As noted above, Garcia underwent surgery on August 16, 1988.
The Workers’ Compensation Court, in its conclusions of law, found that Garcia was within the course and scope of her employment on July 18, 1988, when she suffered an injury as defined in § 39-71-119, MCA (1987). This statute provides in part:
39-71-119. Injury and accident defined. (1) “Injury’ or “injured” means:
(a) internal or external physical harm to the body;...
(2) An injury is caused by an accident. An accident is:
(a) an unexpected traumatic incident or unusual strain;
(b) identifiable by time and place of occurrence;
(c) identifiable by member or part of the body affected; and
(d) caused by a specific event on a single day or during a single work shift...
The Workers’ Compensation Court concluded the definition of injury retains the pre-1987 requirement of “an unexpected traumatic accident” or “unusual strain.” Gaumer v. State Compensation Fund (1990), 243 Mont. 414, 795 P.2d 77. The court also found that the fact that an employee is suffering from or afflicted with preexisting disease or disability does not preclude compensation if the disease or disability is aggravated or accelerated by an industrial accident. Birnie v. U.S. Gypsum, Co. (1958), 134 Mont. 39, 328 P.2d 133; Rumsey v. Cardinal Petroleum (1975), 166 Mont. 17, 530 P.2d 433; Shepard v. Midland Foods, Inc. (1983), 205 Mont. 146, 666 P.2d 758.
However, the Workers’ Compensation Court found that “compensable injury’ and “disability’ were two separate considerations. Hall v. Cigna Insurance Co., (1991), 248 Mont. 484, 812 P.2d 1262. In Hall, the claimant sustained several separate injuries over a period of years while employed with different employers and while doing separate activities. Hall alleged right knee, left ankle, and back pain were attributable to injuries sustained while working for ARCO. Hall at 488, 812 P.2d at 1264. We held that Hall did not demonstrate by a preponderance of the evidence that his current medical condition was attributable to his employment with ARCO. Hall at 489, 812 P.2d at 1265.
The Workers’ Compensation Court concluded that the entitlement to disability benefits must be supported by a preponderance of the medical evidence. The burden of proof is on the claimant to prove the work-related incident as a contributory cause to her disability. Gierke v. Associated Indemnity Corporation (1986), 224 Mont. 446, 454, 730 P.2d 1143, 1148. The Workers’ Compensation Court found, and the medical record bears out, that Garcia and Dr. Lovitt discussed surgery prior to July 18,1988. On July 18,1988, Dr. Lovitt noted the same continuing symptoms. The plaintiff did not present any evidence to support her position that her surgery or disability was causally related to the July 18, 1988 injury.
II
Garcia argues that the Workers’ Compensation Court violated her right to due process and equal protection of the law. The basis of the argument is that, in holding Garcia was not entitled to any benefits beyond the amount paid, the court exceeded the issue of whether or not Garcia was injured. Therefore, Garcia was deprived of her right to notice and opportunity to be heard.
One of the issues presented by the parties to the hearing examiner was whether Garcia suffered a compensable industrial injury arising out of and/in the course of her employment. The Workers’ Compensation Court found in Garcia’s favor on that issue. In Garcia’s complaint and in her contention number one of the pretrial order, Garcia claimed she was entitled to continued temporary total disability payments from the insurer. Thus, the Workers’ Compensation Court did not exceed the scope of the issues in concluding Garcia was not entitled to benefits beyond the amount paid.
Garcia argues that the Workers’ Compensation Court, in holding she was not entitled to any benefits beyond the amount paid, denied her due process. The essence of her argument is that she was without notice that the disability issue would be tried. However, as stated above, Garcia’s first contention in the pretrial order was that of whether or not she was entitled to temporary total disability payments. Evidence that Garcia’s disability was not related to her injury was presented by the depositions of Dr. Lovitt and Garcia approximately one month before the hearing. The Workers’ Compensation Court made a finding on this issue.
The dissent argues that the Workers’ Compensation Court exceeded its jurisdiction by deciding issues not raised by the parties. The hearings examiner approved a pretrial order which was signed by the parties. He noted at the hearing that the order would govern the proceedings. ARM 24.5.318 governs pretrial practice before the Workers’ Compensation Court and provides for the pretrial conference and order. The order set forth the uncontested facts, the issues to be determined, and both parties’ contentions. The relevant portions are as follows:
E. Statement of Issues to be Determined by the Court.
1. Whether Petitioner suffered a compensable industrial in jury arising out of/and in the course of her employment on or about July 18, 1988 ...
F. Petitioner’s Contentions:
1. Petitioner has been, and continues to be, temporarily totally disabled as a result of the incident of July 18, 1988 ...
G. Defendant’s Contentions:
2. Claimant has a long history of back problems. Her surgery and back problems are related to her history of back problems not to anything that occurred on or about July 18, 1988. Likewise, the medical records reflect that claimant decided to have surgery on her back prior to the time of her alleged injury.
Further, the depositions of Dr. Lovitt and Garcia were submitted to the hearings examiner.
One of the purposes of the pretrial order is to specify the legal theories and contentions of fact upon which the parties are proceeding. A pretrial conference is held to promote organization and management of the case. We must balance here the integrity of the order and the adaptability of the proceedings. Case v. Abrams (10th Cir. 1965), 352 F.2d 193.
Unlike pleadings, usually based on information and belief, the pre-trial order defining the issues is the result of discovery in which, as this order recites ... both parties know the testimony of the other’s witnesses. The pre-trial order supersedes the pleadings and becomes the governing pattern of the lawsuit.
Case, at 195.
The question before us is whether the pretrial order can be construed to include the issue of whether Garcia was entitled to compensation beyond the amount paid. The trial court has wide discretion in matters of pretrial practice. See Moore v. Sylvania Electronic Products, Inc. (3rd Cir. 1972), 454 F.2d 81, Ely v. Reading Co. (3rd Cir. 1970), 424 F.2d 758, and Davis v. Duplantis (5th Cir. 1971), 448 F.2d 918.
As stated by the Eighth Circuit:
We are satisfied that the trial court properly interpreted the issues raised by the pleadings. In any event the appellant by the pre-trial order was fully advised of the presence in the case of the oral contract of insurance issue, and is in no position to claim that it was misled as to the issues to be tried.
American Surety Company of New York v. Williford (8th Cir. 1957), 243 F.2d 494, 497. We find that Garcia was advised by the pretrial order of the presence of the disability issue, and cannot claim surprise.
Ill
In its findings of fact, the Workers’ Compensation Court found that Dr. Lovitt had not been requested to prepare an impairment rating and could not state a date that Garcia could have reached maximum healing following surgery. Garcia contends that the issue of maximum healing and a subsequent impairment evaluation was not before the court and should not have been decided.
Even though Garcia contests the court’s finding on Dr. Lovitt’s testimony regarding the impairment rating and maximum healing, she argues that she was deprived of the right to a determination on the issue of maximum healing and an impairment rating, denying her due process. Garcia argues that a determination of maximum healing is mandatory. Garcia relies on Wood v. Consolidated Freightways (1991), 248 Mont. 26, 808 P.2d 502 for the proposition that a determination of maximum healing is mandatory. However, Wood involved the question of whether the claimant was permanently partially disabled or totally disabled after receiving a work related injury. Not whether he was disabled from a work-related injury. We conclude under these facts such a determination was not necessary.
For the reasons stated above, we conclude substantial credible evidence existed to support the findings and conclusions of the Worker’s Compensation Court.
Affirmed.
CHIEF JUSTICE TURNAGE and JUSTICE HARRISON, GRAY and WEBER concur.
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On May 21, 1991 the Defendant was sentenced to twenty (20) years with five (5) years suspended for Sexual Intercourse Without Consent; plus nine specific conditions listed in the Judgment including Dangerous Designation.
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 proceeded pro se. 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 Kenneth Yother for his assistance to this Court.
|
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
Defendant Harold Jesse Meadors appeals his conviction on two counts of criminal possession of dangerous drugs and from denial of his pretrial motion to suppress certain evidence.
On June 4, 1977, between 7:00 and 8:00 a.m., Officer Bruce Oberg of the Billings Police Department responded to a call that a suspicious vehicle was parked on Black Otter Trail, on top of the rimrocks overlooking the City of Billings. Officer Oberg found an automobile with Wyoming license plates parked in the eastbound land facing west,' blocking the road. He observed defendant slumped against the driver’s door, apparently asleep.
When Officer Oberg looked into the car, he saw that the ignition lights on the car’s dashboard were on and observed a marijuana pipe resting in the open ashtray. Oberg shook defendant awake and asked him to get out of the car. As defendant was doing so, Oberg noticed a small vial containing a small amount of white residue powder and a yellow and a red pill in defendant’s right front watch pocket which defendant pushed back into his pocket.
In response to Officer Oberg’s request for identification, defendant gave his name and birthdate and informed Oberg that Detective Trimarco of the Yellowstone County Sheriff’s Department knew him.
Because defendant could not produce any identification, Officer Oberg asked him to empty his pockets onto the hood of the car. Officer Oberg testified he was looking for identification and for the vial he had seen earlier. When defendant did not produce the vial, Officer Oberg told defendant “I want the vial out of your watch pocket.” Defendant then produced two vials, one empty and the other containing the white powder and two pills.
By this time Officer Gary Hatfield arrived on the scene to back up Officer Oberg. When asked whether he had any vehicle registration, defendant replied he did not. Officer Hatfield then instituted a check for the registered owner of the car through the Billings Police Department; the NCIC, a national list of stolen vehicles; and the Wyoming Department of Motor Vehicles.,
In response to Officer Qberg’s request for permission to enter the car to look for a registration certificate, defendant refused. Nonetheless, Officer Oberg entered the car and checked the glove compartment where he found one bag containing marijuana and another bag containing a large quantity of amphetamine tablets.
Officer Hatfield then reported there were no locally listed warrants on the vehicle. Officer Oberg then informed Officer Hatfield of the drugs he had found in the glove compartment and instructed Hatfield to arrest defendant. After arresting defendant, Officer Hatfield advised him of his rights and conducted a search of his person. During this search he discovered an aspirin bottle containing more amphetamines and another vial containing two marijuana cigarettes.
After Officers Oberg and Hatfield called for assistance in bringing defendant’s vehicle to the police station, they took defendant to the police station. Once there, the police obtained a search warrant to search defendant’s vehicle and found more amphetamines and marijuana inside the can and in the trunk. In all, the police found more than 15,000 amphetamine tablets and over 360 grams of marijuana in defendant’s possession.
Later a report from the Wyoming Department of Motor Vehicles revealed the car was registered to defendant. During the search of defendant’s vehicle pursuant to the search warrant, the police also found defendant’s driver identification on the front windshield visor.
Defendant was charged by Information in District Court, Yellowstone County, with two counts of criminal possession of dangerous drugs: Count I for possessing more than sixty grams of marijuana of “the approximate weight of 368.5 grams”, and Count II for possessing 15,785 amphetamine tablets. Defendant plead not guilty to both counts and moved to suppress all evidence seized as a result of the search of his person and his vehicle. After an evidentiary hearing, the District Court denied defendant’s motion to suppress. Defendant sought review of this denial by a writ of supervisory control, which this Court denied. State ex rel Meadors v. District Court, No. 13965, September 14, 1977. Defendant was subsequently convicted by jury on both counts and sentenced to 5 years imprisonment in the state prison on each count, to run consecutively.
In his appeal defendant raises three specifications of error:
1. Denial of defendant’s motion to suppress.
2. Conviction of two separate crimes based on possession of two different dangerous drugs on the same occasion.
3. Failure to direct a verdict in favor of defendant for failure to prove defendant possessed the exact amount of drugs alleged in the Information.
At the outset, we note that four separate searches are involved in this case: (1)the warrantless search of defendant when ordered to empty his pockets; (2) the warrantless search of defendant’s glove compartment; (3)the warrantless full body search of defendant following arrest; and (4) the search of defendant’s vehicle at the police station pursuant to the search warrant.
Defendant contends that initial searches of his person and his vehicle without the benefit of a warrant were illegal because they did not fall within any of the recognized exceptions to the search warrant requirement. He further concludes that the subsequent searches of his person and vehicle were tainted by the initial illegality and, therefore, the evidence obtained from all four searches must be suppressed.
The state claims the initial search of defendant was valid as a search incident to a lawful arrest under the rule that a search prior to actual arrest is valid as a search incident to a lawful arrest if the officer had probable cause to arrest the defendant at the time of the search. Cipres v. United States (9th Cir. 1965), 343 F.2d 95; State v. Smith (1977), 88 Wash.2d 127, 559 P.2d 970; Layland v. State (Alaska 1975), 535 P.2d 1043; State V. Brooks (1961), 57 Wash.2d 422, 357 P.2d 735.
A search incident to a lawful arrest is a recognized exception to the warrant requirement for lawful searches and seizures. Section 95-701(a), R.C.M.1947. Other jurisdictions have held tha if the search is made substantially contemporaneously to the arrest, it makes no difference that the search precedes rather than follows the arrest. Cipres v. United States, supra; Layland v. State, supra; State v. Brooks, supra. The rationale has been stated in this language:
“ * * * if the officer is entitled to make an arrest on the basis of information available to him before he searches, and as an incident to that arrest is entitled to make a reasonable search of the person arrested and the place where he is arrested, there is nothing unreasonable in his conduct if he makes the search before instead of after the arrest. In fact, if the person searched is innocent and the search convinces the officer that his reasonable belief to the contrary is erroneous, it is to the advantage of the person searched not to be arrested. On the other hand, if he is not innocent or the search does not establish his innocence, the security of his person, house, papers, or effects suffers no more from a search preceedng his arrest than it would from the same search following it.” People v. Simon, (1955) 45 Cal.2d 645, 290 P.2d 531, 533.
This rationale makes sense. The rule is sound. We hold that a search incident to a lawful arrest is not rendered illegal simply because it precedes rather than follows the arrest. This rule is subject to three limitations; (l)the officer must have been able to effect a lawful arrest at the time of making a search; (2) the actual arrest must be made substantially contemporaneous with the search, and (3) the search must satisfy the permissible scope and purpose of a search incident to a lawful arrest.
In Montana, a peace officer may make a warrantless arrest when he believes on reasonable grounds that a person is committing an offense, or that the person has committed an offense and the ex isting circumstances require his immediate arrest. In section 95-608(d), R.C.M.1947, the term “reasonable grounds” is synonymous with the term “probable cause”. State v. Fetters and Lean (1974), 165 Mont. 117, 122, 526 P.2d 122.
In the instant case did Officer Oberg have probable cause to arrest defendant at the time he first searched him? Probable cause to arrest exists where the facts and circumstances within the officer’s knowledge and of which he has reasonable trustworthy information are sufficient in themselves to warrant a man of reasonable caution to believe that an offense has been or is being committed. State v. Lenon (1977), 174 Mont. 264, 570 P.2d 901, 905.
In this case Officer Oberg found defendant asleep between 7:00 and 8:00 a.m. in a car which was parked in the wrong lane of traffic blocking the road. The roadway was part of a paved scenic drive overlooking the City of Billings, although not a regular street. The car’s ignition lights were on and a marijuana pipe was resting in the ashtray. Defendant could neither produce any personal identification nor registration for the car bearing out-of-state license plates. Officer Oberg saw a vial sticking out of defendant’s pocket which contained white powder and a red and a yellow pill. Officer Oberg thought these items were drugs and drug paraphernalia, based on his prior police experience. These circumstances constituted probable cause for Officer Oberg to arrest defendant at the time he first searched him.
Defendant next charges the search of his glove compartment.-He claims that it was outside the permissible scope of a search incident to an arrest. At the time Officer Oberg searched defendant’s glove compartment, defendant was standing outside his car. He was not yet under actual arrest, not was he handcuffed. Officer Oberg entered the car to search the glove compartment for a vehicle registration certificate. There he found approximately 54 grams of marijuana and 6,930 amphetamine tablets. Even assuming, without deciding, that Oberg’s search of the glove compartment was illegal, there still remained sufficient untainted evidence on which to base defendant’s conviction on both the felony possession of marijuana and amphetamine charges.
Defendant’s challenge to the third and fourth searches rests upon his assumption that the first two searchés were illegal. Our holding that Oberg’s first search of defendant was legal and that he had probable cause to arrest defendant at that point eliminates defendant’s challenge to the third and fourth searches.
Officer Oberg had probable cause to arrest defendant at the time of the first search. The first search disclosed what appeared to be prohibited drugs on defendant’s person. A marijuana pipe was seen resting in an open ashtray in the car. The third search after defendant’s arrest was a full body search authorized as an incident to the lawful arrest. Section 95-702, R.C.M.1947; United States v. Robinson (1973), 414 U.S. 218, 94 S.Ct. 467, 38 L.Ed.2d 427; Gustafson v. Florida (1973), 414 U.S. 260, 94 S.Ct. 488, 38 L.Ed.2d 456. The third search disclosed an asprin bottle containing what appeared to be more amphetamines and another vial containing what appeared to be two marijuana cigarettes. The fourth search was a search of defendant’s car pursuant to a search warrant where still more am.phetamines and marijuana were found inside the car and in the trunk. Thus the evidence found during the third and fourth searches was admissible.
Defendant’s second specification of error is whether he may be charged and convicted of a separate offense for each type of prohibited drug found in his possession during the same transaction or occurrence. He argues that the statute under which he was charged, section 54-133, R.C.M.1947, in unclear on this point and therefore, this Court should follow the rule the United States Supreme Court adopted in Bell v. United States (1955), 349 U.S. 81, 83, 75 S.Ct. 620, 99 L.Ed. 905.
In Bell, petitioner transported two women at the same time across a state line for purposes of immoral conduct. He was subsequently charged with, two separate offenses of violating the Mann Act, 18 U.S.C. § 2421. Petitioner argued his conduct constituted only one violation of the Mann act. Because the Supreme Court felt the statute was ambiguous as to what Congress had intended to make the allowable unit of prosecution, it resolved the ambiguity in favor of leniency. Bell v. United States, supra.
The issue in the instant case is whether the Montana Legislature intended to treat the drugs prohibited by section 54-133, R.C.M.1947, as a generic group thereby outlawing possession of the entire group as a whole, or whether it intended to provide a distinct crime as to each of the prohibited drugs.
At the time of commission of the offenses charged, section 54-133(a) provided:
“A person commits the offense of criminal possession of dangerous drugs if he possesses any dangerous drug as defined in this act.”
The phrase “any dangerous drug as defined in this act” means any drugs defined in section 54-301, R.C.M.1947. State ex rel. Lance v. District Court, (1975), 168 Mont. 297, 542 P.2d 1211. Subsection (b) of section 54-133 provided criminal penalties for both misdemeanors and felong possession of marijuana, and subsection (c) provided criminal penalties for dangerous drugs not otherwise provided for in subsection (b).
The legislature thus specifically spelled out what kinds or types of drugs were prohibited; provided different penalties for possession of these different types or kinds; and, provided different penalties for possession of specific drugs based on the quantity or amount possessed. Therefore, we conclude the legislature did not intend to treat all prohibited drugs as a generic group or unit, but meant to provide a distinct crime for possessing each different kind of prohibited drug.
This legislative intent is further supported by a 1977 amendment singling out and providing separate and distinct criminal penalties for possession of an opiate. Sec. 2, Ch. 584, Laws 1977.
For the foregoing reasons, the Bell rule is inapplicable to this case.
We are supported in our decision by State v. Adams (Del.Super.1976), 364 A.2d 1237. In Adams the defendant was charged with seven counts arising out of the possession of drugs at the same time. Four of the counts were based on possession with intent to deliver four different nonnarcotic controlled substances. The defendant moved to dismiss these four counts, to consolidate them into one offense, or to consolidate them into a single conviction, should he be found guilty. As does Montana, Delaware also has a version of the Uniform Controlled Substances Act. (Uniform Controlled Substances Act, 9 U.L.A. 145 (1973; Sections 54-301 to 327, R.C.M.1947; 16 Del.C.Anno. §§ 4701-78.) The court found that the intent of Delaware’s Controlled Substances Act was to prevent the existence of a particular substance in the hands of anyone other than a licensed person and found equal emphasis upon prohibition of the particular substance, as well as upon prohibition of the act of possession. Consequently it denied the defendant’s motion. In coming to its conclusion the Delaware court said:
“* * * there is no requirement that each substance be dealt with in a separate section of the statute in order for a separate crime to be created. Nor is it required that there be language specifically stating that each separate substance which is possessed or delivered shall constitute a separate offense. The essential requirement is that it fairly appear that the legislature intended that each substance be dealt with separately for purpose of delineating a crime and that the language express it.” State v. Adams, 364 A.2d 1239.
Defendant cites cases from other jurisdictions which refused to interpret their narcotics laws as allowing separate offenses for possession of each type of prohibited drug possessed on the same occasion. United States v. Martin (W.D.Pa.1969), 302 F.Supp. 498, aff’d 428 F.2d 1140 (3rd Cir. 1970), cert.den., 400 U.S. 960, 91 S.Ct. 361, 27 L.Ed.2d 269; Parmagini v. United States (9th Cir.1930), 42 F.2d 721; Braden v. United States (8th Cir. 1920), 270 F. 441. We reject these holdings as they involve interpretations of statutes whose framework substantially differs from the Montana statute.
Defendant also contends that he may not be convicted of more than one offense of possession of dangerous drugs. Montana’s statutes clearly provide to the contrary. An Information may charge two or more offenses connected in their commission. Defendant may be convicted of any number of the offenses charged, as the prosecution is not required to elect between them. Section 95-1504(1), R.C.M.1947. But where the same transaction establishes the commission of more than one offense, the number of convictions obtainable is limited by section 95-1711(2), R.C.M.1947. In such situation defendant may be prosecuted for each offense arising out of the same transaction with certain statutory exceptions:
“(2) * * * He may not, however, be convicted of more than one offense if:
“(a) one offense is included in the other;
“(b) one offense consists only of a conspiracy or other form of preparation to commit the other;
“(c) inconsistent findings of fact are required to establish the commission of the offenses;
“(d) the offenses differ only in that one is defined to prohibit a designated kind of conduct generally and the other to prohibit a specific instance of such conduct; or
“(e) the offense is defined to prohibit a continuing course of conduct and the defendant’s course of conduct was interrupted, unless the law provides that the specific periods of such conduct constitute separate offenses.” Section 95-1711(2), R.C.M.1947.
The crime of felony possession of marijuana of felony possession of amphetamines, so the former is not an offense included in the latter, nor is the latter an offense included in the former. Nor do subsections (b) through (e) limit the number of prosecutions or convictions in this case. Accordingly, we hold that where a defendant is in possession of more than one kind of prohibited drug at any one time, he may be prosecuted and convicted of a separate offense for each kind of prohibited drug he possesses.
Defendant’s final specification of error concerns whether he was entitled to a direct verdict of acquittal at the close of the evidence. His argument is that the state charged him in one count with possession of approximately 368.5 grams of marijuana and in the other count with possession of 15,785 amphetamine tablets and proved neither by admissible evidence.
At trial, defendant failed to object to a jury instruction to the effect that if the jury found that defendant possessed the prohibited drug, the amount thereof was immaterial except in the case of marijuana, where the state was required to prove that the amount possessed exceeded 60 grams to convict defendant of a felony. This is not only a correct statement of the law to which defendant could not validly object, but the propriety of this instruction was never raised in the trial court and cannot be raised for the first time on appeal. State v. Murphy (977), 174 Mont. 307, 570 P.2d 1103, 1105.
The evidence seized under the first, third and fourth searches amounted to approximately 313 grams of marijuana and 8,855 amphetamine tablets. This evidence was correctly admitted at trial under our prior holdings in this case. Even assuming, and we do not so decide, that the drugs found in the second search were inadmissible as contended by defendant, the state’s proof was sufficient to support the crimes charged without it. There was no error in denial of defendant’s motion for a direct verdict.
The conviction of defendant on both counts is affirmed.
MR. JUSTICES DALY and HARRISON, and M. JAMES SORTE, District Judge, sitting with the Court, concur.
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DECISION
The application of the above-named defendant for a review of the sentence of Life Imprisonment for Assault in the First Degree with 3 prior convictions, imposed on December 13, 1961, was fully heard and after a careful consideration of the entire matter it is decided that:
The sentence be reduced to forty years.
While the presumption is that the sentencing judge was correct in his determination, and it is true that the sentence in this ease could have been for life or years without limit, nevertheless, it has been made to appear to this Court that the interests of justice, the crime, the individual, and the sentencing goals kept in mind, would be just as well served by a lesser sentence, making possible an early-consideration for parole for the defendant with some considerable period of his sentence remaining for supervision.
In reaching the conclusion we have, account has been taken of the fact that a life sentence for first degree assault is unusual, even with three prior convictions. In a somewhat comparable case, State v. McLeod, 131 Mont. 478, 311 P.2 400, the defendant with á prior convictions received but 18 years. This is not to say, however, that a much longer sentence is not justified in the case at hand. The sentencing problem deals with widely differing human beings and their infinitely varying actions.
We thank Leonard Haxby, Esq., for his assistance to the defendant and to the Court.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Jack D. Shanstrom, LeRoy L. Mc-Kinnon.
|
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
On September 14, 1978, defendant moved the District Court of the Third Judicial District, Powell County, for an order dismissing the Information filed against him because of the failure of the State of Montana to comply with the provisions of the Interstate Agreement on Detainers. Sections 95-3131 through 95-3132, R.C.M. 1947, now sections 46-31-101 through 46-31-102 MCA. The Dis trict Court denied the motion. On October 2, 1978, defendant was found guilty of the offense of escape. He appeals.
On April 15, 1977, defendant escaped from the Montana State Prison while serving concurrent terms of five and seven years imposed January 1975. He was arrested in Colorado on another charge in August 1977 and subsequently convicted. While at the Denver County jail awaiting disposition of the Colorado charge, defendant was served with a detainer charging him with escape from the Montana State Prison.
He was subsequently transferred to the Colorado State Prison at Canyon City but apparently the prison officials were not notified of the outstanding detainer. Because the detainer was not forwarded to the prison, the prison officials would not aid defendant in processing the detainer. Defendant then sought the aid of another inmate at the Colorado institution. A motion for quick and speedy trial was drafted and, on February 23, 1978, defendant sent copies of the motion to the Clerk of the District Court for Powell County, the Warden of the Montana State Prison, and the County Attorney for Powell County.
Dolores Munden, supervisor of records at the Montana State Prison, subsequently testified that she received a copy of the motion along with a copy of defendant’s Colorado commitment on March 2, 1978. Defendant was returned to Montana on Friday, March 25, 1978, and an Information charging him with escape was filed in the District Court on the following Thursday. The matter was scheduled for trial on May 15. The trial was rescheduled for July 17, and then rescheduled again for September 19. No reason for the continuances appears in the record.
On September 6, counsel were notified that the September 19 trial setting had been vacated. Defendant responded by moving to dismiss the Information on the grounds that he had not received a prompt disposition of the charge as required by the Interstate Agreement on Detainers. The motion was denied. Defendant was tried on October 2, 1978, approximately 210 days or seven months after defendant had notified the officials of his desire to be tried on the escape charge.
The issue presented for review is whether the District Court erred in denying defendant’s motion to dismiss the Information charging him with escape pursuant to the provisions of the Interstate Agreement on Detainers.
Defendant argues that he should have been tried within the next “term of court” after his notification to the State of Montana. He argues that the State’s failure to bring him to trial within three months violates the provision of the Interstate Agreement on Detainers as adopted in Montana.
The State contends that the Agreement on Detainers does not apply where a prisoner’s transfer to the receiving state is not for the purpose of effecting a prompt disposition of untried charges there and is not to be followed by the prisoner’s return to the sending state. The State goes on to argue that defendant’s request did not substantially comply with the Agreement’s requirements because it did not include a certificate from Colorado authorities stating “the term of [his] commitment, the time served and the time remaining to be served, the amount of good time defendant may have earned, and defendant’s parole status.” Finally, the State argues that this case involves a speedy trial question and that under the facts of the case, there was no deprivation of defendant’s right to a speedy trial.
The United State Supreme Court recently addressed the provi sions of the Interstate Agreement on Detainers in United States v. Mauro (1978), 436 U.S. 340, 98 S.Ct. 1834, 56 L.Ed.2d 329. Noting that the agreement has been adopted by 46 states, the Court went on to state the following:
“The Agreement ... is designed ‘to encourage the expeditious and orderly disposition of . . . charges [outstanding against a prisoner] and determination of the proper status of any and all detainers based on untried indictments, informations, or complaints’. Art. I. It prescribes procedures by which a member State may obtain for trial a prisoner incarcerated in another member jurisdiction and by which the prisoner may demand the speedy disposition of certain charges pending against him in another jurisdiction. In either case, however, the provisions of the Agreement are triggered only when a ‘detainer’ is filed with the custodial [sending] State by another State [receiving] having untried charges pending against the prisoner; to obtain temporary custody, the receiving State must also file an appropriate ‘request’ with the sending State.” [Emphasis added.] 436 U.S. at 343-44, 98 S.Ct. at 1838, 56 L.Ed.2d at 336.
The provisions of the agreement, therefore, bind the receiving state when the detainer is filed.
Two questions arise at this point. The first is whether defendant’s motion for speedy trial substantially complied with the requirements of the Act. We find that it did.
In Rockmore v. State (1974), 21 Ariz.App. 388, 519 P.2d 877, the Arizona Supreme Court addressed a similar issue. The state had argued that the defendant’s petition was incomplete because it was not accompanied by a certificate as required by Article III and that the defendant had not had the sending state, California, offer to deliver temporary custody as required by Article V.- The court found no merit in these arguments because the officials of the sending state are required to send the certificate and an offer of custody. Relief should not be denied a defendant when officials of the sending state fail to comply with the provisions to which they are bound. Rockmore, 519 P.2d at 879. In so finding, the court cited Article IX of the Agreement which provides that “[t]his agreement shall be liberally construed so as to effectuate its purposes.”
In the instant case it appears that defendant did all the he could do to comply with the provisions of the Agreement. The State invoked the provisions of the Agreement by lodging the detainer and by obtaining custody of defendant in accordance with the Agreement’s provisions. We find, then, that under the circumstances of the instant case, defendant’s substantial compliance with the Agreement’s procedure invoked the provisions of the Agreement.
The second question we must address concerns the meaning of the phrase “next term of court” as it appears in Article III of Montana’s version of the Agreement.
The Agreement as adopted in most states provides:
“ ... he shall be brought to trial within one hundred eighty days after he shall have cause to be delivered to the prosecuting officer and the appropriate court of the prosecuting officers jurisdiction written notice of the place of his imprisonment and his request for a final disposition to be made of the indictment, information, or complaint . . .” (Emphasis added.) Art. Ill, Interstate Agreement on Detainers.
Montana’s version substitutes the phrase “at the next term of court” for the uniform act’s phrase “within one hundred eighty days.” This substituted phrase has never been construed by this Court.
Defendant argues that section 93-315, R.C.M. 1947, now section 3-5-401 MCA, defines this phrase:
“The district court of each county which is a judicial district by itself has not terms, and must be always open for the transaction of business, except on legal holidays and nonjudicial days. Juries for the trial of causes must be called by the judge as often as the public business requires. In each district where two or more counties are united the judge thereof must fix the term of court in each county in his district, and there must be at least four terms a year in each county. Any order of the judge of such district fixing terms of court shall be filed in the office of the clerk of the district court in each county'of his district, and shall remain in effect until further order of the judge; provided, that nothing in this section shall be construed to prevent the calling of a special term of court, with or without a jury, when in the opinion of the presiding judge the same is necessary. The district court in one county to a future day certain, and in the meantime hold court in another county.” (Emphasis added.)
Defendant contends that since “there must be at least four terms a year” each term must be three months in length. The State argues that the statute defining terms of court does not require terms to be of equal length. Thus, the requirement of four terms could conceivably be satisfied in a district with three terms of one day and one term of 362 days.
A problem would arise in interpreting this phrase as applied to a county which is a judicial district by itself in that, according to the statute, such a district “has no terms.” But in the instant case, counsel for the State admitted during oral agrument that the Third Judicial District comprises more than one county and has terms, though the length of the terms is not consistent. The State also admitted that defendant was not tried within the next term of court after he had submitted his request for disposition.
Article V(c) of the Agreement provides in pertinent part:
“. . . in the event that an action on the . . . information ... on the basis of which the detainer has been lodged is not brought to trial within the periods provided by this act, the appropriate court of the jurisdiction where the . . •. information . . . has been pending shall enter an order dismissing the same with prejudice, and any detainer based thereon shall cease to be of any force or effect.” Therefore, defendant’s conviction is reversed. The District Court is instructed to enter an order dismissing with prejudice the information charging defendant with escape.
MR. JUSTICES DALY, SHEA and SHEEHY concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
This is an appeal from an order of the District Court of Lake County granting defendant’s motion to dismiss.
In 1977, plaintiff Tim Yanzick was a tenured teacher in School District #23, Lake County, Montana, having taught there for seven years. On March 15, 1977, plaintiff received a letter from the Chairman of the School District’s Board of Trustees, which stated that the Board “* * * has decided to terminate your services as a tenured teacher at the end of your current contract year.” Pursuant to section 75-6104, R.C.M.1947, plaintiff, on March 16, requested the specific reasons for termination of his contract by the School Board.
On March 24, 1977, the Chairman of the School Board sent plaintiff a letter listing the reasons for termination of his contract. In this letter plaintiff was given five reasons for his termination. Essentially, plaintiff’s contract was being terminated because he was living with a woman who was not his wife.
Under section 75-6104, R.C.M.1947, plaintiff had ten days after receipt of this letter in which to request a hearing before the Board. His written request for a hearing was delivered to the Board after the expiration of the ten day period. In reliance on a written opinion of the county attorney, the Board refused to grant plaintiff a hearing on the ground that his failure to make a timely request ended plaintiff’s right to contest his termination.
Thereafter, on July 11, 1967, plaintiff filed a petition seeking injunctive relief and a declaratory judgment in the District Court. In the petition, plaintiff requested that the Board of Trustees be required to show cause why it should not be enjoined from termin ating plaintiff’s contract as a tenured teacher. Plaintiff also sought a declaratory judgment that he be entitled to an evidentiary hearing before the Board.
In his petition plaintiff claimed he was entitled to a hearing before the Board because he had made every effort to comply with the provisions of section 75-6104. Plaintiff alleged that, prior to the expiration of the ten day period, a letter requesting a hearing was prepared and given to his then attorney of record. Further, he alleged that said attorney contacted the Superintendent of Schools for School District #23 and received assurances that there was no need to immediately deliver the written request for a hearing. According to plaintiff, it was because of these assurances from the Superintendent that his request for a hearing was not delivered until after the ten day period had expired.
On July 20, 1977, the Board answered plaintiff’s petition by a motion to dismiss. The Board contended that the Superintendent of Schools did not have the authority to waive the ten day limit for requesting a hearing. They argued that plaintiff had not exhausted his administrative remedies because he had the right to appeal to the County Superintendent on the issue of any waiver of the ten day limit.
A show cause hearing was held by the District Court on July 20, 1977, Upon submission of memoranda by the parties relating to the motion to dismiss, the District Court entered an order and opinion on August 4, 1977, granting dismissal. The District Court reasoned that since plaintiff had not pursued all of his available administrative remedies, the court was without jurisdiction to entertain the petition. Following the issuance of the order to dismiss, plaintiff brought this appeal.
On appeal, plaintiff has raised two issues:
1. Is plaintiff entitled to a hearing before the School Board?
2. Did the District Court lack jurisdiction to hear and determine plaintiff’s petition on the ground of his alleged failure to exhaust his administrative remedies?
We have previously held that the ten day time limit for re questing a hearing concerning termination is mandatory. If the right to have a hearing is not pursued within the time allowed by law, the tenured teacher’s right to contest termination of employment is at an end. Schweigert v. Board of Trustees (1973), 163 Mont. 29, 515 P.2d 85.
Plaintiff recognizes this rule. However, he maintains that the Superintendent of Schools waived the ten day limit on behalf of the School Board, precluding denial of his later request for a hearing.
Under Montana law, a superintendent of schools is the executive officer of the trustees. Section 75-6113, R.C.M.1947. School District No. 4 v. Colburg (1976), 169 Mont. 368, 547 P.2d 84. The relationship that exists between the superintendent and trustees is an agency relationship. The superintendent is subject to the direction and control of the trustees. Section 75-6113. Due to this direction and control, the superintendent is the “agent” of the trustees — the “principal”.
Recognizing the relationship between a superintendent of schools and the trustees to be an agency relationship, we must then decide, in this case, if the Superintendent of Schools of District #23 had the authority to waive the ten day limit for requesting a hearing on the behalf of the Board of Trustees. We hold the Superintendent had ostensible authority to waive the ten day limit on behalf of the Board.
Ostensible authority is defined in section 2-124, R.C.M.1947. The definition reads:
“Ostensible authority is such as a principal, intentionally or by want of ordinary care, causes or allows a third person to believe the agent to possess.”
Here, the Board allowed plaintiff to believe that the Superintendent had the authority to waive the time limit for a hearing request.
“This Court has previously held that ostensible authority arises from the facts of a particular case and the test is found in a determination of the exact extent to which the principal held the agent out or permitted him to hold himself out as authorized, and what a prudent person acting in good faith under the circumstances would reasonably believe the agent’s authority to be. (Citation omitted.)” Audit Services, Inc. v. Elmo Road Corporation (1978), . . . Mont. ..., 575 P.2d 77, 81, 35 St.Rep. 227.
Plaintiff acted in good faith to let the Board know he was requesting a hearing when he contacted the Superintendent. The Superintendent assured plaintiff’s counsel that plaintiff would be granted a hearing at his convenience and that there was no necessity to deliver the written request immediately. Under those circumstances, plaintiff could and did believe that he could submit the request after the ten day period was over. Since the Superintendent acted on the behalf of the Board in making these assurances, the Board is bound by them. Thus, plaintiff is entitled to a hearing before the Board concerning the termination of his contract.
In view of this holding, we need not discuss the second issue in detail. We simply point out that plaintiff has not yet exhausted his administrative remedies, because he has heretofore been denied the opportunity to do so.
The order of the District Court dismissing plaintiff’s petition is reversed. The cause is remanded to the trial court with instructions to order the School Board to hold an evidentiary hearing forthwith on the termination of plaintiff’s contract as a tenured teacher.
MR. JUSTICES DALY, SHEA and SHEEHY concur.
|
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JOEL ROTH, District Judge,
sitting for Chief Justice Haswell, delivered the opinion of the Court.
Plaintiff Lyle H. Forrester appeals from a summary judgment in favor of defendants Edwin Kuck, Danny Duane Kuck and George Chavez granted July 20, 1977, by the District Court, Yellowstone County.
The legal proceedings leading up to the summary judgment were: Plaintiff Forrester filed a complaint on March 22, 1976, against the three defendants alleging injuries caused by the negligent operation of trucks driven by defendants Danny Kuck and George Chavez resulting in a collision between the truck driven by defendant Danny Kuck and plaintiff’s motorcycle on the highway near Warren, Carbon County, Montana, on July 29, 1975. The complaint also alleged that defendants Danny Kuck and George Chavez were employees of defendant Edwin Kuck who owned the trucks.
Defendants filed a motion to dismiss, which was denied. Defendant’s answer was filed on July 9, 1976. It alleged that defendants Danny Kuck and George Chavez were not employees of defendant Edwin Kuck but were employees of Empire Sand and Gravel Company; that plaintiff Forrester was also an employee of-Empire Sand and Gravel Company; and, that Forrester’s injuries arose out of an industrial accident for which he received workman’s compensation benefits.
The question as to who was the employer of defendants Danny Kuck and George Chavez became the issue in the case as framed by the pleadings.
Discovery consisted of defendant Edwin Kuck’s answers to written interrogatories propounded by the plaintiff; the deposition of defendant Edwin Kuck; the deposition of plaintiff Forrester; an affidavit of Meredith Reiter, the vice-president of Empire Sand and Gravel Company; and, an affidavit of Officer George E. Turner, the highway patrolman who investigated the accident.
The undisputed facts established by the discovery procedure are:
Plaintiff Forrester was an employee of Empire Sand and Gravel Company working at a gravel pit near Warren, Montana, loading gravel trucks hauling gravel to a nearby railroad siding. At the end of his work shift Forrester would drive to his residence in Bridger, Montana, a distance of 26 miles. His employer paid him travel pay, based on mileage to and from the job.
Defendant Edwin Kuck, the owner of the trucks, by an oral agreement with Empire Sand and Gravel Company, leased five trucks to Empire which included the two trucks driven by defendants Danny Kuck and George Chavez. The drivers of defendant Edwin Kuck’s trucks were hired by Empire through the local union, were paid their wages pursuant to union contract by Empire, and Empire withheld federal and state income taxes and social security from their wages and paid industrial accident premiums and unemployment taxes on their wages. Empire prepared and furnished W-2 Wage and Tax Statements to each of them for the year 1975, showing Empire as their employer. They were insured under Empire’s industrial accident coverage. Defendants Danny Kuck and George Chavez were under the direction and control of Empire. Defendant Edwin Kuck was required to repair and maintain the trucks and to provide liability insurance on the trucks. The trucks were leased at the rate of $32 per hour. Defendant Edwin Kuck received the balance of the hourly rental after Empire paid the drivers’ wages and deducted various items from the $32 hourly rate.
On July 29, 1975 plaintiff Forrester had completed his shift at approximately 5:00 p.m. and was enroute to his residence riding his motorcycle and following the loaded truck driven by defendant George Chavez. The truck driven by Chavez and an oncoming empty truck driven by defendant Danny Kuck switched lanes at a curve in the highway pursuant to CB radio communication between the two drivers. The empty triick driven by defendant Danny Kuck collided with plaintiff’s motorcycle.
Forrester was injured and hospitalized. He was awarded workmen’s compensation benefits through the industrial accident coverage of Empire Sand and Gravel Company.
The above facts were undisputed by plaintiff Forrester when defendants filed their motion for summary judgment on September 22, 1976. Without presenting any facts in support, plaintiff contended in his answer brief to the motion for summary judgment that defendants Danny Kuck and George Chavez were employees of defendant Edwin Kuck or, at least, were employees of both defendant Edwin Kuck and Empire Sand and Gravel Company.
The law as applied to the undisputed facts is clear that an employee is entitled to workmen’s compensation benefits when his injuries arose out of and in the course of his employment. Section 92-614, R.C.M.1947.
An employee who receives travel pay to and from his place of employment and is injured during travel to or from his place of employment is considered to have received injuries in the course of his employment. McMillen v. McKee, 165 Mont. 462, 533 P.2d 1095 (1975).
The law is also clear that if one employee is injured by the alleged ordinary negligence of a coemployee such coemployee is immune from suit for personal injury, Section 92-204.1, R.C.M.1947; State ex rel Ferguson v. District Court, (1974) 164 Mont. 84, 519 P.2d 151. In Ferguson the Court stated:
“* * * the Montana Workmen’s Compensation Act is founded on the principales of enterprise liability and enterprise immunity, it has become well settled that where the Act applies, a coemployee is immune from suit.” 164 Mont. 89, 519 P.2d 153.
The Court further stated in Ferguson:
“The test to determine whether or not an employer-employee relationship exists within the meaning of sections 92-410 and 92-411, R.C.M.1947, is the so called control test. Under that test an individual is in the service of another when that other has the right to control the details of the individual’s work * * * While this test has most often been used to determine whether or not an individual was an independent contractor or. an employee, it may also be used to determine who the employer is, in a given situation. * * * Under this test an employee will have been transferred from one employer to another when the right to control the details of his work has passed from one to another.” 164 Mont. 88, 519 P.2d 153.
The general law relative to employer-employee relationship is set forth in 53 Am. Jr.2d, Master and Servant, §2:
“* * * at common law there are four elements which are considered upon the question whether the relationship of master and servant exists — namely, the selection and engagement of the servant, the payment of wages, the power of dismissal, and the power of control of the servant’s conduct — the really essential element of the relationship is the right of control, that is, the right of one person, the master, to order and control another, the servant, in the performance of work by the latter, and the right to direct the manner in which the work shall be done.”
This Court in Kish v. Montana State Prison, (1973), 161 Mont. 297, 505 P.2d 891, synthesized these elements into two major factors: (1)Who has control over the employee and, (2)in whose business was the employee engaged?
Without again reciting the facts underlying defendant’s motion for summary judgment, suffice it to say that discovery established the trucks were leased to Empire Sand and Gravel Company. It had absolute control over their use. The drivers were hired solely by Empire, were subject to dismissal by Empire, and were subject to the sole control of Empire, and were paid by Empire. The trucks and drivers were engaged solely in the business of Empire. No facts were established that would indicate defendants Chavez and Danny Kuck were employees of defendant Edwin Kuck or were joint employees of defendant Edwin Kuck and Empire Sand and Gravel Company. Defendants Chavez and Danny Kuck were employees of Empire Sand and Gravel Company.
The law relating to the liability of the owner of the trucks, defendant Edwin Kuck, in this factual setting is also clear. It is set out in 8 Am.Jur.2d, Automobiles and Highway Traffic, § 571:
“*' * * liability for the negligent use of a motor vehicle cannot be predicated against the owner at common law merely because of the ownership of the vehicle.”
We find that each of the defendants herein have carried the burden of showing a complete absence of any genuine issue as to material facts and they are entitled to judgment as a matter of law, pursuant to Rule 56, M.R.Cic.P.
The District Court’s judgment is affirmed.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY concur.
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MEMO OPINION
PER CURIAM.
James C. Spurlock, an inmate of the Montana State Prison, appearing pro se, has filed with this Court a motion to release funds. It is alleged in the motion that an undisclosed sum of money was deposited to petitioner’s spending account in the prison, and that he had spent $107.45 thereof. Further, that the warden stopped petitioner from having access to the balance of the money; that such moneys have been illegally confiscated. Petitioner also asserts that his being denied the use of his personal funds is a denial' of his right and a violation •of the search and seizure provisions of the United States and Montana Constitutions, and the Montana Statutes. Upon these allegations petitioner seeks an Order of this Court releasing his funds.
The State Prison is under the jurisdiction of the State Department of Institutions. See section 80-1403, R.C.M.1947. The custody, expenditure, and receipt of moneys in the State Prison is handled under general rules and regulations adopted by the Department as provided in section 80-1405(1) (c), R.C.M.1947.
Since the petition contains no allegations of facts disclosing any arbitrary action or abuse of discretion we refer petitioner to our comments in Petition of LaDoux, 144 Mont. 9, 393 P.2d 778. While the fact situation in that case covered á different matter the Court’s statements are applicable here. We there stated: “The department of public institutions, the board of prison commissioners, and the warden have wide discretionary powers granted them by the legislature to govern the prisoners * ° *. We are reluctant to interfere with discretionary acts unless it is clearly shown that there has been an abuse of the delegated discretion.”
So far as we can tell from the allegations of the motion there has been no violation of search and seizure or any other provisions of the constitutional and statutory law.
The motion was denied and the proceeding is dismissed.
On Motion to Reconsider
James C. Spurlock, an inmate of the Montana State Prison, appearing pro se, has filed with this Court what he entitled a “Motion to Reconsider”, requesting in effect a rehearing of the per curiam Opinion of this Court dated June 17, 1968, upon a motion to release funds, previously filed herein.
In his motion Spurlock concedes that the custody and expenditure of money belonging to inmates of the state prison is-handled under the rules of the Department of Institutions, but he contends that such rules are not being applied on a fair and equal basis and that he is being discriminated against.
Since there was no record with regard to this matter the' Court examined into the situation to ascertain the facts. There-is a regulation in the prison prohibiting the exchange of money or merchandise between inmates. The money about which. Spurlock complains was deviously transferred from another inmate in violation of the regulation, and when the violation was discovered by the prison authorities they refused to permit further spending of such funds.
It would therefore appear that Spurlock’s situation is solely one of his own making, he being in violation of the prison regulations. The facts do not disclose any arbitrary action or abuse of discretion on the part of the warden of the state-prison.
The motion to reconsider is denied.
|
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MR. JUSTICE FREEBOURN:
Grass Creek Oil and Gas Company, plaintiff and appellant, brought this action to quiet title to an undivided one-half interest in all oil, gas and other minerals underlying the S^SW^A, NE^SW^, W%SEi4, section 24, township 10 north, range 26 east, M. P. M., in Musselshell county, Montana. From a judgment in favor of defendants, plaintiff has appealed.
The issues made by the pleadings and the rights claimed in this case were settled in Hinton v. Staunton, Mont. 228 Pac. (2d) 461, except as to the Texas Oil Company which holds by virtue of leases from certain of the defendants.
For the reasons stated and upon the authorities cited in Hinton v. Staunton, supra, the judgment of the lower court is affirmed.
MR. CHIEF JUSTICE ADAIR, and ASSOCIATE JUSTICES METCALF, BOTTOMLY and ANGSTMAN, concur.
|
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MEMO' OPINION
PER CURIAM:
This is an original proceeding wherein petitioner, Donald E. Eldiwitw, an inmate of Montana State Prison appearing pro se, asks this Court to issue a writ of habeas corpus discharging him from custody.
Petitioner contends among other things that his rights to due process were violated when, upon the date of his sentencing, the district judge first imposed sentence and then vacated the sentence and appointed counsel for petitioner, later sentencing him on the same conviction while he was repre-' sented by counsel.
The trial court records show that petitioner was arraigned on December 20, 1968, in Yellowstone County, Montana, where he entered a plea of guilty to the crime of robbery. It appears from the record that the court took every opportunity to explain to petitioner that he had a right to an attorney and that the court would appoint one if he so desired. On January 9, 1969, the day set for judgment and passing sentence,'the petitioner appeared without counsel and the court again explained' to him concerning his rights to counsel and the petitioner again refused to have an attorney appointed to represent him. The following colloquy then took place:
“THE COURT: It will be the judgment of the Court that you be imprisoned in the State Penitentiary at Deer Lodge, Montana, for a term of ten. years. It is further ordered that the time that you have heretofore served in the County Jail will be credited upon that sentence. Now having imposed sentence, I will ask you again whether you want to withdraw your plea of guilty and whether you want the Court to appoint an attorney to represent you?
“THE DEFENDANT: Ten years is a long time.
“THE COURT: You have previously stated on at least 2 or 3 occasions that you didn’t want an attorney?
“THE DEPENDANT: Yes,, sir.
“THE COURT: I have given you every opportunity■ to be represented by an attorney and I have told you I would appoint ah attorney to represent you if you asked me to.
“THE DEPENDANT: Yes, sir, you did.
“THE COURT: Now I have just sentenced you to ten years in the State. Penitentiary and I will ask you again, whether you want to have an attorney appointed to represent you?
“THE DEPENDANT: I just can’t stand here and let you give me ten years without trying something, so it’s.possible I would like to have an attorney, yes, sir. . .
“THE COURT: I see. Very well. The pronouncement pf judgment, is now vacated, the Court will appoint an .attorney to represent the defendant and the time for pronouncement of judgment is now fixed for Thursday, the 16th day of Janu-. ary, 1969, at 11 o’clock a.m. And I might say to you that I consider fhis judgment of imprisonment of ten years for armed robbery to be the minimum which can be pronounced for an offense of that kind, but since you wish to have .an attorney represent you and since you aré entitled to .be so., represented, .the ....Court will appoint an attorney and will again take this matter up a week from, today. * # ®.”
On the'return day the following took place: , .
“THE COURT: In cause No. 7628, the State of Montana versus Donald Evert Eldiwitw, a report has be'en received from the - authorities at the Montana State Hospital at Warm Springs and from that report it appears that the defendant is entirely competent. The time for pronouncement of'judgment was continued until the report of the authorities at the State Hospital was received, and the defendant and his counsel now being present and R. C. Letcher, Deputy County' Attorney being also present, I will inquire of counsel for .both parties as to whether there is any,further- time desired' before pronouncement of jtidgment.”
- It is quite evident from the foregoing that the intention of the court was to vacate the sentence imposed and continue the case for a week so that petitioner could be represented by counsel. It is also quite obvious that the court never intended to vacate the judgment of conviction for the crime committed. Although the choice of words used by the court may have been inappropriate, nevertheless the idea involved was well taken' by all of the parties.
Section 95-2716, R.C.M.1947, provides: “A person may not be released on a writ of habeas corpus due to any technical defect in commitment not affecting his substantial rights.” The petitioner here would now have this Court set' him free because of a mere technical defect, if that is what it is, which in no way affects his substantial rights. This we cannot and will not do. While habeas corpus relieves from illegal custody, it is no part of its function to absolve any one from the penalty of his guilt.
Petitioner sets forth other reasons for the writ including, (a) the court failed to appoint counsel although petitioner was not intelligent enough to waive same; (b) counsel later appointed by the court was “ineffective”; (c) due process was denied him when the court ordered that he be sent to Warm Springs for a mental examination and he was not present at the hearing; (d) that a sentence of 10 years in prison for robbery is more than the state allows under section 94-115, R.C.M.1947.
We do not find merit in the above contentions, (a) The requirements of procedural due process have not yet been extended to that of requiring the court to appoint counsel in every criminal case even though defendant has specifically waived the appointment of counsel. In fact this contention is quite ludicrous here since the court went as far as to retract its judgment and the sentence imposed and continued the time for imposing the same in order that petitioner could be represented by counsel, (b) The now stagnant refrain of “in effective” counsel is not worthy of our discussion and therefore will not be discussed, (c) The record before this Court does not describe the type of hearing involved in which petitioner was sent to Warm Springs. But this is of little consequence since, under section 95-1904(b), R.C.M.1947, there is a conclusive presumption that defendant was present at all stages of the proceeding unless the record affirmatively shows the contrary, (d) Section 94-4303, R.C.M.1947, provides the penalty for robbery to be not less than one year stating no maximum penalty. Since there is no maximum penalty stated it is presumed that a person may be incarcerated for a lifetime on a conviction of robbery. Most certainly the catch-all statute, section 94-115, R.C.M.1947, does not apply since it merely provides penalties for crimes not otherwise provided for in the statutes.
Finding no merit whatever in petitioner’s contentions the writ is denied and the proceeding is dismissed.
|
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MR. CHIEF JUSTICE ADAIR:
Six plaintiffs, Ed Light, Lucy Light, H. R. Suit, Edna H. Suit, Horace Green and Hazel Green, were and are the owners of a certain described lot or parcel of land situate in the county of Wheatland together with the buildings thereon and all stock and fixtures in said building.
On April 2, 1947, plaintiffs as vendors and Herman G. Baehler, Alice Y. Baehler, Archie C. Zeiter and Cecelia C. Zeiter, as vendees, made, entered into, and signed a written contract for deed wherein plaintiffs agreed to sell and the vendees agreed to buy “that certain lot or parcel of land situate in the county of Wheatland, State of Montana and described as follows: Tracts Thirteen (13), Fourteen (14) and Fifteen (15) in Section 23, Township 8 North, Range 15 East situated in Liberty Park Subdivision in Wheatland County, Montana, together with the buildings thereon and all stock and fixtures in said building, less land deeded to the State of Montana for Highway purposes,” (emphasis supplied) for the agreed consideration of $27,000 to be paid in five installments as follows: $500 cash on the signing of the contract; $10,000 on or before April 15, 1947; $2,500 on or before. September 15, 1947; $3,500 on January 1, 1948, ánd $10,500 on January 1, 1949, deferred payments to carry interest at the rate of 6 % per annum.
The contract provides for the placing in escrow of a good and sufficient deed of general warranty to be delivered to vendees upon the performance of the contract and further provides that “all buildings and improvements now on the land and the fixtures within the building shall not be removed from said lands but shall remain the property of the parties of the first part [vendors] until this contract shall be completely performed and the deed delivered to the said second parties [vendees] *' * * and if it [the default] is the payment of money [the notice thereof] shall contain the amount necessary to cure the breach and if the same is not cured within thirty days the lands and the buildings and the improvements and all payments made as the stock which shall be substituted for the original stock, as per agreement, shall be and forever remain the absolute property of the parties of the first part [vendors] and the parties of the second part [vendees] shall have no right or claim thereto. ” Emphasis supplied.
On April 2, 1947, on the signing of the contract, the vendees paid to plaintiffs the first installment of $500 cash and on April 15, 1947, the vendees paid the further sum of $10,000 called for by the contract, upon receipt whereof and. on the date of such payment, possession of the described property was delivered to the vendees.
Prior to and at the time possession was so delivered to the vendees a bar known as the ‘ ‘ Corral Club ’ ’ was operated on the described premises by one “H. F. Green” under a retail beer license and a retail liquor license issued to such licensee, as owner, by the Montana liquor control board, and covering the license year 1946-1947.
In the latter part of June 1947, being almost three months after the execution of the contract for deed, “H. F. Green” executed and delivered to the defendants Archie C. Zeiter and Cecelia C. Zeiter, his wife, a written assignment of the 1946-1947 retail beer and liquor licenses so standing in the name of the assignor “H. F. Green.”
Following the making and delivery to them of the assignment of the licenses the defendants Archie C. Zeiter and Cecelia C. Zeiter filed with the Montana liquor control board the assignment of the “H. F. Green” licenses together with their application for the issuance to them of retail beer and retad liquor licenses for the premises for the new license year beginning July 1, 1947.
The Montana liquor control board approved and consented to the assignment so executed by “H. F. Green” and, on July 1, 1947, issued to and in the names of Archie C. Zeiter and Cecelia C. Zeiter, as owners, retail beer license No. 1483 and retail liquor license No. 1387, authorizing defendants to sell beer and liquor at retail in and from the premises, pursuant to which authority defendants operated a bar thereon from July 1, 1947, until April 20, 1948, being the day following the commencement of this suit.
The vendees failed to pay any part of the installments which, under the contract, became due on September 15, 1947, and on January 1, 1948, respectively.
On September 22, 1947, vendees were served in the manner provided in the contract with a writing signed by plaintiffs designated “Notice Terminating and Cancelling Contract for Deed,” stating the amount due and owing to plaintiffs and notifying the vendees that “on or before 30 days from date hereof all your rights and interest in the property above described shall cease and terminate and the contract shall be, by these presents, cancelled and terminated, and you are required and demanded to give up and surrender possession of said real and personal property and deliver the same to the undersigned * *
The vendees failed to pay any part of the installment due September 15, 1947, within said 30 days or at all and on October 29, 1947, two of the vendees, viz., Herman G. Baehler and Alice Y. Baehler, his wife, executed and delivered to Ed Light, H. R. Suit and Horace Green, as grantees, a quitclaim deed of all the right, title, interest, possession and equity of the Baehlers in the property described in the contract for deed. Thus did the Baehlers surrender and turn over to three of the plaintiffs all the interest or equity acquired by them through the contract.
The failure to pay the installment due September 15, 1947, or any part thereof on or before 30 days from and after September 22,1947, on which date the vendees were served with the notice terminating and cancelling the contract for deed, forfeited all defendants’ rights thereunder and made of such contract a dead instrument and rendered the continued occupation of the premises a trespass.
No part of the installment which became due January 1, 1948, was paid and on February 3, 1948, defendants were served with a second notice signed by plaintiffs addressed: “ To: Archie C. Zeiter and Cecelia C. Zeiter, his wife, at Harlowton, Montana,” notifying defendants of their default and setting forth verbatim the provisions of the contract pertaining to default, notice, forfeiture, and cancellation of the contract.
On March 18, 1948, a third notice signed by plaintiffs was served upon defendants stating the amount in which defendants were then in default and concluded with the further notice that, “You are further notified under the provisions above quoted that this is notice likewise that no further notice of cancellation and forfeiture shall be given if the breach is not cured, but that the parties shall, following the expiration of thirty (30) days, sue to cancel said contract and to forfeit the same. ’ ’
April 19, 1948, plaintiffs commenced this suit in equity against the defendants, Archie C. Zeiter and Cecelia C. Zeiter, and on that day caused the latter to be served with process herein.
On the following day, April 20, 1948, the defendants Zeiter delivered to plaintiffs possession of the whole of the premises and property described in the contract for deed and plaintiffs have since continued in possession thereof.
When the Zeiters so vacated and turned the premises and property over to plaintiffs, they retained and took with them the retail beer license and the retail liquor license so issued to them by the Montana liquor control board, on its approval of the written assignment from “H. F. Green” and of defendants’ application for new licenses for 1947-1948, and upon the payment by defendants of the statutory fees therefor.
Defendants value the licenses so standing in their names at $7,000 and offer to assign them to plaintiffs for that sum.
Plaintiffs rejected defendants’ offer, claiming that the words “stock and fixtures” employed in the contract for deed “included said licenses and the return of the same upon default as described in the contract” and here seek to have a court of equity so construe the contract; to revive and reform same, and by decree, to compel a transfer and assignment to plaintiffs of defendants’ licenses “upon payment by plaintiffs to defendants of the pro-rata share of the cost thereof between the dates the plaintiffs acquired possession and the use thereof and their expiration date.” Such “pro-rata share of the cost” was found by the district court to be the sum of $77.74.
Complaint. Plaintiffs seek to invoke the jurisdiction of a court of equity by pleading “mutual mistake” of the ten persons signing the written contract of April 2, 1947.
In their complaint plaintiffs aver: That by ‘‘ mutual mistake ’ ’ the contract does not truly express the intention of the parties; that the written contract was intended by the parties to embody and evidence an understanding and agreement that part of the consideration “was an agreement to also transfer and assign all local, state and federal beer and liquor licenses, for the year 1946, owned by plaintiffs but standing in the name of H. N. Green, otherwise known as Horace Green, one of the plaintiffs herein named, to the defendants for their use and operation in the ‘Corral Club’ * * * an establishment for the sale and dispensing of beers and liquors;” that “said mutual mistake consists in the inadvertent failure of the parties to incorporate into the written contract their oral understanding that all licenses for the sale and dispensing of beers and liquors issued to the plaintiffs, or any one of them for the convenience of the others, and which necessarily were used by them in the operation of the premises sold to the defendants were, and of necessity could not be considered otherwise, the substantial part of the consideration con tracted to be paid by the defendants, as defendants well knew; that said mistake was excusable in that prospective purchasers, and actual purchasers of establishments vending beers and liquors take for granted that beer and liquor licenses are a part of the consideration for the sale of the establishment where said licenses are used, whether expressed in the agreement or not, otherwise the establishment could not operate; that said plaintiffs and defendants took for granted that said liquor licenses were part of the consideration for said sale between them; that ‘ ‘ said agreement does not truly express the intention of the parties to provide for plaintiffs’ reacquiring said licenses upon default by the defendants in the performance of all covenants and conditions provided in said contract; that the inadvertence of the said parties signatory in failing to provide for reacquiring the ownership and possession of said licenses is excusable in that neither the plaintiffs and defendants nor any of them, had any experience with the transfer or sale of beer and liquor licenses by contract and all of the parties were unaccustomed to the same; that until defendants defaulted in their payments under said contract and plaintiffs employed counsel to ascertain their rights thereunder against the defendants, plaintiffs labored under the impression that the word ‘stock and fixtures’ included said licenses and the return of the same upon default as described in the contract; that the defendants likewise labored under the same impression until they were advised differently; that said mistake defeats the intentions of the parties hereto in that defendants could by payment of first installment only acquire absolute ownership in valuable beer and liquor licenses without any redress for the plaintiffs; that if said plaintiffs cannot reacquire said licenses in this action and prevent defendants removal and transfer of the same, plaintiffs will suffer irreparable damage and gross injustice for if upon repossession of the premises by voluntary relinquishment of the defendants before judgment herein, or by judgment of this court, the defendants remove said licenses from the premises the plaintiffs will forthwith have to close down said establishment and cease operating the same;” that “said ‘Corral Club’ was described in the contract as ‘improvements’ upon the premises; that “the plaintiffs cannot have issued to them beer or liquor licenses upon original application to the State Liquor Control Board; that without said licenses of the defendants- the possession of the premises will be almost valueless to the plaintiffs for the reasons heretofore alleged; that the defendants have likewise threatened to allow the plaintiffs to reacquire possession of said premises, but have consistently asserted that plaintiffs cannot reacquire possession of title to said licenses.” Emphasis supplied.
Demurrer. Defendants demurred to plaintiffs’ complaint on the grounds: (1) Defect of nonjoinder of parties defendant in omitting to make Herman Gr. Baehler and Alice V. Baehler who signed the contract for deed parties to the action; and (2) that the complaint fails to state a cause of action against defendants, or either of them.
Answer. Upon the overruling of their demurrer, defendants filed an answer, the first portion whereof specifically admits certain allegations of the complaint, specifically denies other allegations thereof, and generally denies all the allegations not so specifically admitted or denied. The answer specifically denies that there was a mutual mistake in the making of the contract for deed or that such contract does not express the true intent of the parties thereto and affirmatively alleges that such contract “was intended to and did express the actual intent of the parties” thereto.
Defendants specifically “deny that they were under the impression that the words ‘stock and fixtures’ included said licenses” and allege that they “understood said phrase in its ordinary meaning” and allege that they sought advice upon the interpretation of said agreement only when informed that plaintiffs construed such words as is alleged in their complaint.
As to the offer to do equity pleaded in paragraph XI of the complaint, the defendants deny that plaintiffs’ offer to pay “the pro-rata share of the cost” of the licenses is an equitable offer and allege that to be equitable it should be a cash offer in the sum of $7,000; allege that the contract for deed was cancelled and fully terminated on October 22, 1947, by their defaults and the notices so served upon them by plaintiffs; allege that at all times since the termination of the contract for deed that defendants have been ever ready and willing to turn over to the said plaintiffs the property described in such contract, and that defendants have actually delivered possession of said property to the said plaintiffs. ,
The answer also separately states five separate affirmative defenses. In the first separate defense defendants alleged that they made default in the payment of the installment due September 15, 1947; that on September 22, 1947, they were duly served with plaintiffs’ notice terminating and cancelling the contract for deed; that defendants failed to make any of the payments necessary to cure the breach on or before October 22, 1947, or at all, and that “under the terms of said notice the said contract terminated on that date [October 22, 1947] and the property described in said contract became the property of said plaintiffs and the defendants had no right or claim thereto, and that by reason of said termination, the said contract ceased to exist and could not become the subject of reformation.”
We do not deem it necessary in our determination of this appeal to separately review the other four affirmative defenses pleaded in the answer.
Reply. By reply plaintiffs placed in issue the affirmative matters pleaded in the answer.
Trial. A trial of the issues so made was had before the court, sitting without a jury, following which, written findings of fact and conclusions of law were filed and decree entered for plaintiffs.
Decree. The decree ordered and adjudged:
1. That the contract be reformed by inserting and including “among the property sold to defendants the beer and liquor licenses for 1946-1947 standing in the name of H. F. Green * *
2. That defendants “forthwith surrender and turn over to the plaintiffs the absolute possession of * * * the beer and-liquor licenses which are renewals of the licenses assigned to the defendants by H. F. Green, including the 1949-1950 licenses” and said “defendants shall forthwith assign the current beer and liquor licenses to the plaintiffs;”
3. That the clerk of court “shall surrender to the defendants the sum of $77.74 lodged with her when the defendants have complied with” the two preceding paragraphs of the decree;
4. That the “contract for deed as reformed is hereby can-celled and the rights and payments of the defendants are forfeited and the defendants have no right, title, interest or estate whatever in said * * * licenses * * * and the title of the plaintiffs thereto is good and valid; ’ ’
5. That “defendants are permanently enjoined from in any manner disposing of the beer or liquor licenses now in their possession, or any renewals thereof, or from applying to the Montana Liquor Control Board for the transfer or assignment of the same to any other parties than the plaintiffs; ’ ’ and
6. The court “reserves jurisdiction to settle and determine any controversy which may arise between the parties in the performance by them of the terms of this decree. ’ ’
Defendants specify as error the overruling of their demurrer to the complaint, the making of the trial court’s conclusions of law and the making and entering of the above decree.
The chief issue in this suit became and is the right of the six plaintiffs to demand and the authority of a court of equity to adjudge and order the defendants to “forthwith surrender and turn over to the plaintiffs” and make an involuntary assignment to plaintiffs of the retail beer license and the retail liquor license so issued on July 1, 1947, by the Montana liquor control board, to and in the names of the defendants, Archie C. Zeiter and Cecelia C. Zeiter, only.
The statute authorizes defendants “with the consent of the board,” R. C. M. 1947, sec. 4-410 to make a voluntary assignment of their licenses to a qualified person or to qualified persons, R. C. M. 1947, secs. 4-401, 4-402, subd. 4, 4-403, 4-408, 4-409, 4-412, subd. 5, having the occupancy and use of “the premises in respect to which [they are] issued,” R. C. M. 1947, sec. 4-410, provided such “premises are suitable for the carrying on of the business.” R. C. M. 1947, sec.. 4-408. Assuming that plaintiffs are qualified persons and that their premises are suitable for carrying on the business, the plaintiffs, with the consent of the board, are privileged to make a deal with the defendants for a voluntary transfer of the licenses. However, a voluntary transfer is one thing while an involuntary assignment and coerced surrender, effected by court decree after making for the parties a contract to which they did not and could not lawfully agree, is quite another matter.
The 1946-1947 licenses for the premises were not transferred to defendants on April 2, 1947, when the contract for deed was entered into and signed nor were they transferred to defendants by any of the terms or provisions set forth in such contract.
It affirmatively appears from the allegations of plaintiffs’ complaint as well as from the trial court’s findings of fact that at the time of the signing of the contract for deed no licenses had been issued to five of the plaintiffs and that they had neither beer nor liquor license to transfer; that at such time the only retail beer license and the only retail liquor license for the premises were the licenses issued to and standing in the name of “H. F. Green,” only, and that “H. F. Green” made no transfer or assignment of his licenses in the written contract for deed nor at the time such contract was executed, nor did “H. F. Green” make any transfer or assignment of the licenses for the premises until in June 1947, being almost three months after the signing of the contract for deed and shortly before June 30, 1947, at midnight whereof the 1946-1947 licenses would expire. The assignment so made, immediately before the expiration of the “H. F. Green” licenses, merely transferred to the assignees the preferential privilege accorded to the assignor to have new licenses issued to his assigns for the new license year beginning July 1, 1947, irrespective of the limitations established by the “Quota Law,” Chapter 226, Session Laws of 1947, R. C. M. 1947, sec. 4-403.
Thus defendants did not acquire their licenses through the written contract of April 2, 1947, which plaintiffs here ask the court to reform. Defendants acquired their preferential privilege to be granted the 1947-1948 licenses through the much later written assignment executed on June 26, 1947, by the licensee “H. F. Green,” in favor of the defendants Archie C. Zeiter and Cecelia C. Zeiter.
It was this assignment from “H. F. Green,” the Montana liquor control board consenting, that effected the transfer to defendants of the 1946-1947 retail beer and liquor licenses for the premises. The validity of the “H. F. Green” assignment was not challenged nor did plaintiffs ask that it be reformed.
Neither the contract for deed of April 2,1947, nor the “Notice Terminating and Cancelling Contract for Deed” served on defendants on September 22, 1947, nor the quitclaim- deed of October 29, 1947, from the Baehlers, grantors, to the plaintiffs Ed Light, H. R. Suit, and Horace Green, grantees, nor the notice served upon defendants February 3, 1948, nor the notice served March 18, 1948, makes any mention whatever of any beer or liquor licenses.
In paragraph XI of their complaint plaintiffs allege: ‘‘ That the plaintiffs offer to do equity as follows: To pay the defendants the pro-rata share of the original cost of all licenses issued to defendants for 1947-1948 for the plaintiffs’ use thereof until renewal date of each license; and to cancel defendants’ note as paid in full for purchase from the plaintiffs of 62 cases of whiskey in a warehouse in Billings, Montana, as in said contract provided.” Emphasis supplied.
The “defendants’ note” last above referred to apparently is a promissory note given under the provisions of the next to the last clause in the written contract for deed of April 2, 1947, which provides: “It is further agreed that the parties of the first part [plaintiffs] have 62 cases of whiskey in a warehouse in Billings, Montaná, and the parties of the second part [the vendees] agree to buy tbe same at tbe market place as of April 2nd, 1947, and to sign a note for the purchase price of the same, and it is further agreed that the purchase price of said whiskey shall be paid on or before the completion of this contract. ’ ’
However, the law did not, and it does not allow any of the plaintiffs to own or operate a bar on their premises or to conduct thereon the business of selling or keeping for sale any alcoholic liquor without first having obtained from the Montana liquor control board a retail beer license and a retail liquor license duly issued to and in the name of each person so owning and operating such bar and business.
“Any person who has not been issued a license under this act, who shall sell or keep for sale any alcoholic liquor, shall be guilty of a felony and upon conviction thereof shall be fined not less than one thousand dollars ($1000.00) nor more than five thousand dollars ($5,000.00), or be imprisoned in the state prison for not less than one (1) nor more than five (5) years, or both such fine and imprisonment.” R. C. M. 1947, sec. 4-420. So reads the law.
The state not only has the right but it demands to know the identity of all persons to whom it grants the privilege of engaging in the liquor business. The law requires that all such persons come out in the open and there reveal to the state their exact interest, concern and participation when trafficking in liquor. A number of such participants may not hide their identity from the law by standing back in the shadows and permitting but one of their number to come forth, speak, act and front for them. The state requires that all licenses by it issued granting the privilege to sell liquor at retail within its borders be signed by the licensees; that the licenses be posted in a conspicuous place on the premises in respect to which they are issued, R. C. M. 1947, sec. 4-410; and that no person shall sell or keep for sale any alcoholic liquor or otherwise traffic in liquor cept he be a person duly licensed under the law. Ch. 84, Laws of 1937, sees, 1 and 18, R. C. M. 1947, secs. 4-401 and 4-420.
For plaintiffs to lawfully sell ‘ ‘ 62 cases of whiskey in a ware house in Billings, Montana” as they contracted' in writing to do, required that they first have a license granting them that privilege and duly issued to them by the Montana liquor control board.
Plaintiffs affirmatively plead that the “Corral Club” was an establishment for the sale and dispensing of beers and liquors. The owners and operators of such business were required by law to first obtain both a beer and a liquor license before dispensing their wares. Should the “Corral Club” bar be owned and operated by the six plaintiffs as partners, then the law requires that the licenses must be issued to the partnership and must set forth “the names of the persons conducting the business. ” R. C. M. 1947, see. 4-410. All the partners must be qualified persons. The disqualification of a single partner works a disqualification of all the partners. Perry v. Luding, 123 Mont. 570, 217 Pac. (2d) 207, 217; Coletti v. State Board of Equalization, Cal. App., 209 Pac. (2d) 984.
In their complaint the six plaintiffs affirmatively plead that the 1946-1947 licenses for the “Corral Club” bar were “owned by plaintiffs but standing in the name of H. N. Green” and that by “mutual mistake” the parties thereto inadvertently failed “to incorporate into the written contract their oral understanding that all licenses for the sale and dispensing of beers and liquor issued to plaintiffs, or any one of them for the convenience of the others, and which were necessarily used by them in the operation of the premises sold to the defendants” thereby establishing that at least five of their number were unlicensed and illegal owners and operators of such bar. No bar in this state may be lawfully owned and operated by six persons under a liquor license issued to and in the name of but one person, nor does the law permit six persons, under a liquor license issued to and in the name of but one person, to establish ownership and the right to exercise the privilege granted by such liquor license so issued to and standing in the name of but one of their number regardless of whether such arrangement was brought about by design, ignorance, lack of experience or “for the convenience of the others.” Nor may plaintiffs excuse their failure to comply with the requirements of the law by pleading that they were “unaccustomed to” owning and operating bars or trafficking in beer and liquor licenses or because they “labored under the impression that the words ‘stock and fixtures’ included said licenses.”
The law is that “no person, except the licensee therein named, shall exercise any of the privileges granted thereunder.” R. C. M. 1947, sec. 4-410.
A retail liquor license issued by the state to any qualified licensee “is a matter of privilege rather than of right, personal to the licensee, and is neither a right of property, nor a contract or contract right, in the legal or constitutional sense of those terms.” Emphasis supplied. 48 C. J. S., Intoxicating Liquors, sec. 99, page 223, n. 72, 76; Perry v. Luding, supra. “It does not run with the business conducted under the privilege it grants and is not an asset of it.” 48 C. J. S., Intoxicating Liquors, sec. 109, page 228, n. 44. It is neither “lands,” “buildings,” “improvements,” nor “stock and fixtures.”
When the contract for deed was executed no one other than the lone licensee “H. F. Green” had any retail beer or liquor license for the ‘premises and, having no licenses to transfer or assign, it is clear that at least five of the plaintiffs had none “to incorporate into the written agreement.” Hence their omission and failure to incorporate that which they never owned or had any right to transfer cannot be said to evidence a “mutual mistake” from which they are entitled to relief in a court of equity. See: 45 Am. Jur., Reformation of Instruments, secs. 46,' 47, pp. 609, 610, n. 18-20; sec. 49, p. 611, n. 15; sec. 50, pp. 611, 612, n. 19, 20; see. 79, p. 632, n. 4, 5; sec. 103, p. 646, n. 15, 16.
“A court of equity cannot reform an instrument except on allegations which make out a case for the equitable remedy asked. As in other actions, all facts necessary to make out a ease must be pleaded. And if the complaint seeks to reform a written in strument and also to enforce it when reformed, the allegations must be sufficient for both purposes.” 45 Am. Jur., Reformation of Instruments, sec. 98, p. 644, n. 4, 6. Compare: Auerbach v. Healy, 174 Cal. 60, 161 Pac. 1157.
Plaintiffs’ complaint not only fails to state facts sufficient to entitle them to the licenses in question but it affirmatively shows that they have no right thereto.
Defendants acquired their right to the licenses by: (1) Acquiring suitable premises through their written contract with plaintiffs; (2) obtaining from the licensee “H. F. Green” an assignment of the 1946-1947 licenses for the premises; and (3) obtaining the Montana liquor control board’s consent to the assignment and approval of their qualifications and application for the 1947-1948 licenses. Plaintiffs have wholly failed to plead or establish a right in themselves to have a court of equity, bjr decree, wrest from defendants their licenses so acquired or to coerce defendants into making a transfer and assignment thereof on an offer or terms which defendants decline to voluntarily accept.
The decree is reversed and the cause remanded with directions to enter judgment against the plaintiffs for defendants’ costs and for dismissal of the action.
ASSOCIATE JUSTICES FREEBOURN and BOTTOMLY concur.
MR. JUSTICE METCALF concurs in the result.
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MR. JUSTICE HASWELD
delivered the Opinion of the Court.
Action by Bank to collect the balance due on a promissory note and to set aside an alleged fraudulent conveyance of land. From a judgment in favor of the Bank for $15,210.34 on the promissory note and refusing to set aside the alleged fraudulent eonveyence, the Bank appeals.
Plaintiff-appellant is Baker National Bank, a corporation, referred to herein as the Bank. Defendants-respondents are Avon Lestar and his children.
Defendant Avon Lestar, a rancher and livestock dealer, had resided on his ranch property in Fallon county for many years and had maintained an account with the Bank. On May 19, 1961 he executed and delivered his promissory note in the amount of $25,500 payable to the Bank and due on November 15, 1961. This note was secured by a chattel mortgage on cattle, machinery and equipment.
In the late summer or early fall of 1961, defendant Avon Lestar and Eph Keirle, the president of the Bank, entered into an agreement the specific terms of which are in dispute. However, in general terms the agreement provided that Eph Keirle would furnish funds to defendant Avon Lestar for short term purchases of cattle and that upon resale of the cattle so purchased, Avon Lestar would repay the funds advanced together with the sum of $1.00 per head on all cattle so sold.
As a result of this agreement the sum of $32,000 was advanced to defendant Avon Lestar from an account maintained in the Bank by certain members of the Keirle family — Eph Keirle (the president of the Bank), Inga Keirle (presumably his wife), and Pearl Heller (his daughter and bank cashier).
This account, referred to as the KHK account, was a separate fund apart from regular Bank funds and was utilized to loan money to persons to whom the Bank could not otherwise make loans because of limitations on the Bank’s lending capacity. At about the time the money was advanced to defendant Avon Lestar from this account, he gave Pearl Heller a handwritten note which stated “I hereby give Pearl M. Heller authority to debit my account up to the amt. of $32,000 —that I owe the K.H.K. acet.”
Defendant Avon Lestar subsequently purchased a large number of cattle, resold them, and paid the sum of $20,000 to the KHK account during the month of October, 1961. He disclaims owning any further money to this account, contending that the agreement with Eph Keirle was a personal business venture between them resulting in a non-repayable business loss rather than a personal loan.
Thereafter on November 14, 1961, the day before the balance owing on the $25,500 promissory note to the Bank became due, defendant Avon Lestar executed deed conveying his ranch property to his children for a stated consideration of one dollar. This deed recited that “Said Deed is made subject to a 10 year lease in favor of Virgil Mike Lestar (one of his children), dated Nov. 13, 1961.” (Paraenthetieal identification supplied). This deed further provided that “Said conveyance is also made subject to a Mortgage to the Federal Land Bank of Spokane, a Corp. of Spokane, Washington, which Mortgage is to be paid off by Virgil Mike Lestar, in accordance with the terms of said 10 year lease mentioned above.” Although the acknowledgment by the notary on the deed was dated November 14, 1961, testimony at the trial indicated that Avon Lestar’s wife did not sign the deed until several days later. The deed was recorded on November 21 by Avon Lestar’s attorney who prepared the deed. Apparently no one other than the grantors and their attorney knew of the existence of the deed or the tranfer of the property, there being no actual delivery of the deed to the grantees. No written 10 year lease of the property to Virgil Mike Lestar was offered or received in evidence at the trial; nor was there any legal assumption of the mortgage indebtedness.
On November 15, the day Avon Lestar’s promissory note to the Bank became due and payable, he shipped out the remainder of the cattle covered by the chattel mortgage securing payment of this note and subsequently sold them in South Dakota. After deduction of sales costs, he received a check payable to him from the Bales Continental Commission Sales of Huron, South Dakota, in the amount of $16,619.54 representing the net proceeds.
Defendant Avon Lestar endorsed this check in blank, gave it to his wife, and she took it to the Bank. According to the defendants’ testimony, Avon Lestar instructed his wife to take this check to the Bank and apply it to two notes secured by real estate mortgages on his ranch property so as to bring payments on them up to date and to apply the balance on the $25,500 promissory note owing to the Bank, all of which Mrs. Lestar did. According to plaintiff’s testimony, Avon Lestar’s wife gave them no instructions whatever concerning application of the funds represented by the check to the various items of her husband’s indebtedness.
In any event, the cheek for $16,619.54 representing the proceeds of the cattle sale was turned over to Ervin Keirle, the son of Eph Keirle and an assistant cashier of the Bank, who credited $1,881 on the two notes secured by real estate mortgages and the remainder of $14,838.54 to the balance owing on the $25,500 promissory note to the Bank.
Later the same day Ervin Keirle went to the Lestar ranch, secured from Mrs. Lestar Avon’s copy of the $25,500 note to the Bank on which the payment of $14,838.54 had previously been credited, and altered this to show a payment of $1,082.22 interest and $1,557.55 principal on that note. The difference was applied to pay in full the remaining indebtedness of Avon Lestar on the KHK account. From that time until suit was filed the Bank made repeated efforts to locate and communicate with defendant Avon Lestar and to locate the cattle covered by the chattel mortgage, all to no avail.
Thereafter the instant case was filed by the Bank on April 24, 1962. The complaint alleged that defendant Avon Lestar owed the Bank the sum of $23,942.54 principal on the $25,500 promissory note, interest, attorney fees and costs; that the property covered by the chattel mortgage securing this in debtedness had been sold or disposed of by defendant Avon Lestar; and that defendant Avon Lestar had conveyed his ranch property to his children in fraud of the Bank as his creditor. The Bank sought judgment for the amount alleged to be due on the promissory note and judgment setting aside Lestar’s conveyance of his ranch property to his children as being in fraud of his creditors. Lestar’s children were joined as parties defendant solely because they were named as grantees in the conveyance of the ranch property.
The defendants’ answer admitted execution and delivery of the promissory note and chattel mortgage securing payment of the same; alleged partial payment of $13,654.22 principal and $1,082.32 interest on the promissory note; and admitted the conveyance of the ranch property from Avon Lestar to his children but denied that it was fraudulent as to creditors.
The ease was tried in the district court of Fallon county. Some of the issues were submitted to the jury and some were decided by the court. The jury entered a verdict in favor of the Bank in the amount of $11,843.78, the amount defendant Avon Lestar contended was due on the note. Subsequently the court entered findings of fact and conclusions of law fixing interest and attorney fees due on the note and property by Avon Lestar to his children was not fraudulent as to his creditors. The final judgment entered was for $11,843.78 (the jury verdict on the note), interest of $2,866.56, attorney fees of $500, and costs. The Bank appeals from this judgment.
Two underlying issues are assigned for review on this appeal: (1) Did the district court commit reversible error in its instructions to the jury on application of the $16,619.54 to Avon Lestar’s indebtedness? (2) Did the district court err in refusing to set aside the alleged fraudulent conveyance of Avon Lestar’s ranch property to his children?
Directing our attention to the first issue, we observe that it relates entirely to the Bank’s action against defendant Avon Lestar to collect the balance due on the promissory note. Lestar’s defense at the trial was partial payment hy special deposit. This is an affirmative defense and the burden of proving it is upon defendant Avon Lestar. Rule 8(c), M.R. Civ. P.; sections 93-401-26 and 93-1501-1, R.C.M.1947; Olson v. McLean, 132 Mont. 111, 313 P.2d 1039. This includes not only the burden of proving payment to the creditor, but also the burden of proving that such payment was made on the particular obligation in controversy. See Prins v. Van Der Vlugt, 215 Or. 682, 337 P.2d 787; Martin v. Pribil, 186 Okl. 27, 95 P.2d 853; Redwine v. Rohlff Lumber & Supply Co., 54 Wyo. 253, 91 P.2d 49; 70 C.J.S. Payment § 97, p. 303.
The jury must have found that defendant Avon Lestar proved by a preponderance of evidence the affirmative defense of partial payment by special deposit; otherwise their verdict could not stand.
As we understand it, the thrust of the Bank’s objections to the jury instructions is that, in effect, they directed a verdict for defendant Avon Lestar on his defense of partial payment by special deposit. We agree.
Court’s instruction No. 9 instructed the jury that Mrs. Lestar was a special agent of defendant Avon Lestar in her dealings with the Bank. Court’s instruction No. 10 advised the jury “that an agency or the extent of an agency cannot be proved by the acts or declarations of the agent or a third person, but only be proved by the acts and declarations of the principal.” Court’s instruction No. 15 instructed the jury that if they found from a preponderance of the evidence that defendant Avon Lestar instructed his wife to apply the funds in partial payment of the promissory note sued upon “then you are instructed that Mary Etta Lestar was without any authority to apply said proceeds in any other manner and likewise the Baker National Bank and its Assistant Cashier Ervin H. Keirle, was without authority to apply said funds in any other manner.” The net effect of these three instructions was to tell the jury that if they found from a preponderance of the evidence defendant Avon Lestar instructed his wife to apply the funds in partial payment of the promissory note sued upon, neither Mrs. Lestar nor the Bank could apply them in any other way.
The difficulty with all this is that it is an incorrect, misleading and incomplete statement of the law as applied to the evidence in this case. We observe that even though the sufficiency of the evidence is not directly raised as an issue in this appeal, nevertheless the jury instructions must be considered in the context of the evidence offered. The quality of the evidence offered by defendants in this case tests the credulity of this reviewing Court; but taking it at its best in the light most favorable to defendants, the jury instructions are incorrect.
In the first place, the real issue in this case is confused by these instructions. The real issue is not whether Mrs. Lestar was a general or special agent, but whether she had general or limited authority to apply the funds to specific items of her husband’s indebtedness.
In the second place, these instructions preclude the Bank from dealing with Mrs. Lestar as an ostensible agent of her husband. The Bank requested such an instruction which was refused. The Bank’s evidence indicated that Mrs. Lestar appeared at the bank with a check made out to her husband in the amount of $16,619.54 and endorsed in blank by him, explained that her husband was ill in Rochester, exhibited a handwritten note signed by her husband authorizing her to pay on his indebtedness in the Bank, and gave no instructions whatever to the Bank concerning application of the funds to any specific indebtedness. As an agent has such authority as his principal ostensibly, as well as actually, confers upon him (section 2-122, R.C.M.1947), and as ostensible authority is such •as a principal causes or allows a third person to believe the agent possesses (section 2-124, R.C.M.1947), the foregoing instructions are incomplete ' and misleading and consequently erroneous.
Third, court’s instruction No. 15,- noted above, is an incorrect statement of the law. Avon Lestar’s instructions to his wife on application of the funds, standing alone, does not divest the Bank of authority to apply the funds in some other manner. The Bank must have some knowledge of such instructions or at least some reason to believe that Mrs. Lestar’s authority to apply the funds to her husband’s indebtedness is limited. According to the Bank’s evidence, it not only had no knowledge of Avon Lestar’s instructions to his wife but had direct knowledge that there was no limitation on the application of the funds to any specific item of his indebtedness in the form of his endorsement of the check in blank coupled with his signed note authorizing Mrs. Lestar to apply it to his indebtedness at the Bank.
Compounding the error contained in court’s instruction No. 15 was the court’s refusal to give plaintiff’s offered instruction No. 32 which was as follows:
“When a person indebted to another on more than one account makes a partial payment, the burden of proving that at or before the time of such payment he directed its application to a particular debt, and that this direction was made known to Ms creditor, is upon the debtor. “Therefore, if the defendants fail to prove by a preponderance of the evidence that Avon Lestar directed the November 30, 1961 payment be applied on the note here sued upon as claimed by them, or if the defendants fail to prove by a preponderance of the evidence that Avon Lester made such directions known to the Baker National Bank at or before the time of such payment, then you should find for the plaintiff.”
This is a correct statement of the law as applied to the evidence here and refusal to give such instruction was error.
Broadly speaking, the error in the jury Mstructions noted above is that the jury is instructed, in effect, to measure the Bank’s authority to apply the funds in terms of the authority that Avon Lestar conferred on his wife without regard to whether that authority or its limitations were made known to the Bank. The prejudice to the substantial rights of plaintiff Bank from the foregoing instructions given and refused is obvious and constitutes reversible error.
The second issue assigned for review concerns whether the district court erred in its refusal to set aside the conveyance by Avon Lestar of his ranch property to his children as being in fraud of creditors. This issue was withdrawn from the jury’s consideration and submitted to the court for decision. The district court entered findings of fact and conclusions of law determining in substance (1) that Avon Lestar was solvent at the time of the conveyance, and (2) that the conveyance was made for valuable consideration. Hence the district court concluded that the conveyenee was not fraudulent as to Avon Lestar’s creditors.
At the outset, we observe that the function of the Supreme Court upon appeal in a case of an equitable nature is to “review all questions of fact arising upon the evidence presented in the record” and determine the same “as well as questions of law”. Section 93-216, R.C.M.1947. Although this Court is bound to review the evidence as well as the law, the review is limited to determining whether there is substantial evidence to support the trial court’s findings of fact and whether such findings are sufficient to support the conclusions of law based thereon. Keller v. Martin, 153 Mont. 9, 452 P.2d 422; Bender v. Bender, 144 Mont. 470, 397 P.2d 957.
Before proceeding to review the evidence on which the findings of fact of the trial court are based, we note that the basic law applicable to determination of whether the conveyance in the instant case is fraudulent as to creditors is found in the Uniform Fraudulent Conveyance Act, section 29-104, R.C.M. 1947, which provides in material parts as follows:
“Every conveyance made * * * by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyence is made * * *= without a fair consideration.”
Concerning solvency, the district court made this finding of fact:
“That the conveyence by Avon Lestar of his ranch property to his children on November 15, 1961, was made while the defendant Avon Lestar was in fact' solvent having assets of a fair salable value apart from the land in question in the amount of Thirty-six Thousand, Six Hundred Eighty-seven and 11/100 Dollars ($36,687.11) and liabilities of Thirty-five Thousand, Four Hundred Seventy-three and 06/100 Dollars (35,473.06).”
Reviewing the evidence in the light most favorable to defendant Avon Lestar, this finding is simply not supported by the evidence. Giving Avon Lestar the benefit of all doubt on the evidence, his assets at the time of conveyance of his ranch property to his children consisted of the following:
Horses ........................................................................ $ 7,723.95
Machinery .................................................................. 1,500.00
Bank Account .......................................................... 7,741.75
Cattle ........................................................................ 19,721.21
TOTAL ASSETS— ....................................... $36,686.91
Avon Lestar’s liabilities at the time of conveyance were as follows:
Admitted liabilities to Bank ................................ $26,491.66
Outstanding cheeks against bank aect................. 6,981.40
Indebtedness to Federal Land Bank................... 11,044.31
TOTAL LIABILITIES — ................................ $44,517.37
Thus, at the time of conveyance of his ranch property to his children, Avon Lestar’s assets, exclusive of the ranch property, amounted to $7,830.46 less than his liabilities.
Apparently the basic difference between the totals set forth above on assets and liabilities and those used by the district court is that we have included in Avon Lestar’s liabilities the sum of $11,044.31 which he owed to the Federal Land Bank on a note secured by a real estate mortgage on the ranch property. It is undisputed that this was the amount owed on this obligation on November 14, 1961. Defendant Avon Les-tar’s evidence tended to indicate that this indebtedness was assumed by his son Yirgil Mike Lestar, one of the grantees in the conveyence of the ranch property, under a 10 year lease that was never produced in evidence. Be that as it may, it is undisputed that defendant Avon Lestar remained the principal debtor on the Federal Land Bank note and they looked to him for payment. Avon Lestar cannot unilaterally relieve himself of this liability by any purported assumption of this obligation by his son without the consent of the creditor, Federal Land Bank, which was never obtained. Neither is there any evidence of Yirgil Mike Lestar’s ability to pay this indebtedness either at the time of the purported assumption thereof or at the time of the conveyance of the ranch property.
For the foregoing reasons, we hold that defendant Avon Lestar was insolvent as a matter of law at the time of the conveyance of his ranch property to his children.
The district court also made a finding that there was fair consideration for the conveyance of the ranch property as follows:
“That the conveyance by Avon Lestar of his ranch property to his children on November 15, 1961, was made for valuable consideration including the assumption of a mortgage by the grantee and the love and affection of a father for his children. ’ ’
This finding is not supported by the evidence or the law. In the first place, the stated consideration in the deed is solely and only the sum of $1.00. Second, “love and affection” of the grantor for the grantees does not constitute valuable consideration for a conveyance. Ferrell v. Elling, 84 Mont. 384, 276 P. 432. The Uniform Fraudulent Conveyance Act provides that either property be exchanged or an antecedent debt be satisfied in order to constitute fair consideration. Section 29-103, R.C.M.1947. Third, there is no evidence that the conveyance of the ranch property was made in consideration of the assumption of the Federal Land Bank mortgage. On the contrary defendant Avon Lestar’s evidence indicates that the assumption of the indebtedness secured by the Federal Land Bank mortgage by Virgil Mike Lestar resulted from a lease predating the conveyance. The deed itself provides that “Said conveyance is also made subject to a Mortgage to the Federal Land Bank of Spokane, a Corp. of Spokane, Washington, which Mortgage is to be paid off by Yirgil Mike Lestar, in accordance with the terms of said 10 year lease mentioned above.” (Emphasis added.) The lease is referred to in the deed as being dated November 13, 1961. Avon Lestar’s own testimony indicates that the Federal Land Bank indebtedness was assumed ■by Virgil Mike Lestar under the terms of a prior lease and not be virtue of the conveyance of the ranch property:
“A. That’s right, yes. I didn’t owe no more on the Federal Land Bank because that was secured by a lease, by Virgil Lestar for ten years. He was to pay the Federal Land Bank off for ten years.
Q. Had you previously leased the premises to Virgil? A. He had a lease on the place.
“Q. Since when? A. In 1961, November 13th of 1961, and the place was leased to Mike.
“Q. Mike had it leased before that? A. He had it leased in 1957 and that lease is still good too. The lease in November of 1961, the lease calls for that he was to pay the Federal Land Bank.”
Additionally, Virgil Mike Lestar testified that he did not even know of the existence of the deed. He could hardly have assumed the mortgage indebedness in consideration of a conveyance he knew nothing about.
For the foregoing reasons we hold there was no fair consideration for the conveyance of the ranch property from Avon Lestar to his children as a matter of law.
Accordingly, because defendant Avon Lestar was insolvent and conveyed his ranch property to his children without fair consideration, we hold that such conveyance was fraudulent as to creditors and must be set aside.
The judgment of the district court dated February 16, 1967 awarding judgment to plaintiff Baker National Bank against defendant Avon Lestar on the promissory note is reversed and that claim for relief is remanded to the district court for a new trial.
The claim of plaintiff Baker National Bank against all defendants herein to set aside the conveyance introduced as plaintiff’s exhibit A herein is remanded to the district court for entry of appropriate findings of facts and conclusions of law not inconsistent with the views expressed herein together with entry of judgment in favor of plaintiff and against defendants setting aside said conveyance as being in fraud of creditors.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES CASTLES, JOHN CONWAY HARRISON and BONNER, concur.
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HONORABLE ERNEST E. FENTON, District Judge,
sitting in place of MR. JUSTICE BOTTOMLY delivered the Opinion of the Court.
This suit was instituted to obtain a determination that the defendant, who is the mother-in-law of plaintiff, holds an undivided one-half interest in certain real property in trust for the benefit of the plaintiff. Following the trial, the lower court expressly found the allegations of plaintiff’s complaint to be true and the allegations of defendant’s answer and cross- complaint to be untrue. Judgment was entered for tbe plaintiff, and the defendant appealed.
The complaint, found by the lower court to be true in all respects, alleged in substance that on or about May 22, 1957, plaintiff and his wife, Carol Ann Poepping, entered into a contract to purchase certain real estate; that they paid the purchase price of $10,000, more than one-half thereof being paid from funds of the plaintiff; that the defendant paid no part of the purchase price; that the property was conveyed to Carol Ann Poepping and the defendant; that by reason of plaintiff’s payment of over one-half of the purchase price he has an equitable right to the one-half interest so conveyed to the defendant, and that defendant holds said one-half interest in trust for plaintiff’s use and benefit.
Prior to the execution of the contract for deed plaintiff and his wife paid $1,500 on the purchase price, and by the contract for deed they jointly and severally bound themselves to pay the balance of $8,500; but instead of providing for a deed to Carol Ann Poepping and the plaintiff, it was stipulated that upon full payment conveyance should be made by deed to Carol Ann Poepping and the defendant, Bose E. Monson, notwithstanding that the defendant, Mrs. Monson, was not a party to or in any manner obligated by the contract for deed. Thereafter the land in question was conveyed by warranty deed to Carol Ann Poepping and the defendant. By her answer and cross-complaint the defendant alleged ownership as a joint tenant with Carol Ann Poepping, and sought a decree quieting her title.
Pursuant to its findings that the allegations of the complaint were true and that the allegations of the answer and cross-complaint were untrue, the lower court concluded that the plaintiff is the owner and entitled to possession of an undivided one-half interest in the above-mentioned real property; that the defendant holds the naked legal title to an undivided one-half interest in the property and should be required to convey the same to plaintiff; and that the title to the undivided one-half interest now held in the name of the defendant should be quieted in plaintiff.
In brief, the evidence shows that "Wilfred Poepping, with money earned and saved by him, paid the greater part of the purchase price of a home for himself and wife, located on Lincoln Avenue, in Helena. Title to the Lincoln Avenue home was taken in the name of his wife, Carol Ann Poepping. Approximately a year later Mr. and Mrs. Poepping and her parents, John Monson and Rose E. Monson, discussed the purchase of the property which is the subject of this action. This property, referred to in the testimony as the Blue Cloud Ranch, was under consideration as a future location for a trailer court and motel business to be operated as a joint enterprise of the two families. It was tentatively understood that each of the two families would share in the enterprise in proportion to their respective contributions,- that Mr. and Mrs. Poepping w^ould contribute the amount to be realized from the sale of their Lincoln Avenue home; and that Mr. and Mrs. Monson would contribute the amount to be realized from the sale of a home on Peosta Avenue in Helena standing in the name of Mrs. Monson. Pursuant to these discussions, and without any formal agreement between the members of the two families, Wilfred Poepping negotiated the purchase of the Blue Cloud Ranch, and he and his wife, Carol Ann, entered into the contract for deed, hereinbefore referred to, by which it was provided that this property should be conveyed unto Mrs. Poepping and her mother, Rose E. Monson. This arrangement was made at the suggestion of plaintiff’s father-in-law, John Monson.
The Lincoln Avenue property was sold and the net proceeds, in the amount of $7,700, were applied in payment of the balance then owing on the purchase price of the Blue Cloud Ranch. The payments over and above this $7,700 were made from a joint checking account derived from earnings of both Wilfred and Carol Ann Poepping. The Peosta Avenue property was not sold.
In July 1957, both families took up residence together in the house on the Blue Cloud Ranch. The final payment of $7,700 was made in August 1957. In April 1958, the plaintiff left the Blue Cloud Ranch. The domestic arrangement, which placed plaintiff and his wife under the same roof with his father-in-law, his mother-in-law, and his brother-in-law, was not a happy one. Plaintiff’s wife sued for divorce, and at the time of the trial of the case at bar the divorce action was pending and undetermined.
The Peosta Avenue property was transferred by Mrs. Monson to Carol Ann Poepping, by deed bearing date October 27, 1957. Defendent contended that this transfer to her daughter was made in substitution for the sale and contribution of the sale price contemplated by the original understanding between the two families. Plaintiff denied any knowledge of this conveyance prior to the time of trial. His father-in-law testified that plaintiff knew of this arrangement and agreed to it. There was also a conflict in the evidence concerning amounts paid for land-leveling and repairs claimed by the father-in-law as a contribution toward the development of the proposed tourist court project. It may be added that the tourist court never materialized.
By the findings of the lower court, the conflicts in the evidence were resolved in favor of the plaintiff. Defendant challenges the correctness of these findings by her appeal. While, as stated in Sanders v. Sanders, 124 Mont. 595, 597, 229 P.2d 164, it is true that this court has the right to make independent findings of fact in an equity case, after a review of all of the evidence, that statement is modified by the following language, which is applicable, to the case at bar:
“But 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, 122 Mont. 537, 207 P.2d 559; Sanders v. Lucas, 111 Mont. 599, 111 P.2d 1041; Conway v. Fabian, 108 Mont. 287, 89 P.2d 1022; Hayes v. Moffatt, 83 Mont. 214, 271 P. 433; Reynolds v. Trbovich, 123 Mont. 224, 210 P.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 P.2d 404; Lewis v. Bowman, 113 Mont. 68, 121 P.2d 162; Sanger v. Huguenel, 65 Mont. 286, 211 P. 349; Opp v. Boggs, 124 Mont. 98, 219 P.2d 647.”
Error is also assigned because of the refusal of the lower court to order Carol Ann Poepping brought in as an additional party defendant. Mrs. Poepping herself made no application for leave to intervene, but during the trial the defendant moved to have her joined as a party. Section 93-2828, R.C.M. 1947, in part, provides that “The court may determine any controversy between parties before it, when it can be done without prejudice to the rights of others”. In this case there was involved only the one-half interest in contention between the plaintiff and defendant. Plaintiff claimed equitable title to an undivided one-half interest “by reason of the fact that plaintiff has paid over one-half of the purchase price for said property”, and this allegation was found to be true. Notwithstanding payment of more than one-half of the purchase price, plaintiff expressly renounced any claim to the one-half interest conveyed to his wife. Irrespective of whether the plaintiff or defendant prevailed in this case, Carol Ann Poepping would still have her undivided one-half interest. Hence, the lower court did not lose jurisdiction as contended by defendant, by reason of the failure to bring in Mrs. Poepping as a party defendant.
Defendant further specifies error in the lower court’s findings upon the ground that plaintiff’s proof failed to overcome the presumption that Carol Ann Poepping owned the Lincoln Avenue property as the result of a gift from the plaintiff and that, accordingly, she, rather than the plaintiff, should be determined to have paid the $7,700 realized from the sale of this property. The presumption of gift which arises when a husband purchases property and places title in his wife’s name is a rebuttable presumption. Clary v. Fleming, 60 Mont. 246, 198 P. 546; McQuay v. McQuay, 81 Mont. 311, 320, 263 P. 683; Lewis v. Bowman, 113 Mont. 68, 77, 121 P.2d 162. Since as above mentioned, $7,700 of the $10,000 paid for the Blue Cloud Ranch was represented by the proceeds from the sale of the Lincoln Avenue property, and since the lower court found it to be a fact, as alleged by plaintiff, that over one-half of the purchase price was paid by plaintiff, it follows that the court in effect held that the evidence was sufficient to overcome the presumption of a gift of the Lincoln Avenue property to Mrs. Poepping. This finding of the lower court must be sustained under the rules hereinbefore quoted from Sanders v. Sanders, supra, 124 Mont. 595, 229 P.2d 164. See, also, Havre Irrigation Co. v. Majerus, 132 Mont. 410, 414, 318 P.2d 1076; Dalakow v. Geery, 132 Mont. 457, 318 P.2d 253.
However, the existence of the resulting trust claimed by plaintiff is not solely dependent upon the finding that the payment of the proceeds from the sale of the Lincoln Avenue property ivas a payment by plaintiff. It is provided by section 86-103, R.C.M.1947, that “When a transfer of real property is made to one person, and the consideration thereof is paid by or for another, a trust is presumed to result in favor of the person by or for whom such payment is made.” Emphasis supplied.
Plaintiff and his wife, jointly and severally, obligated themselves to pay the $8,500 balance secured by the contract for deed covering the Blue Cloud Ranch. Payments were to be $100 per month, but this significant proviso was added: “* * * it being understood, however, and made a part of this contract, that the balance to be paid, namely $8,500.00, must be paid in six months or upon the sale of the property located at 1717 Lincoln Street, Selena, Montana, but in no event to exceed the period of six months from the date of execution of this con tract. ’ ’ Thus did both plaintiff and his wife commit the Lincoln Avenue property to the payment of their joint and several obligations. Payment of the proceeds from the sale of the Lincoln Avenue property was a payment by plaintiff if he owned that property, and was a payment for plaintiff if it was the sole property of his wife.
In either case, under section 86-103, “a trust is presumed to result in favor of the person by or for whom such payment is made.”
It was held in McKenzie v. Evans, 96 Mont. 1, 29 P.2d 657, that to create a resulting trust in real property, under the statute last-cited, it is not necessary that the person, for whose benefit a conveyance is made, must pay the money; if it is advanced by another for or on his behalf it is sufficient.
In the ordinary case, a resulting trust arises in favor of the payer of the purchase price of property where the price is paid by one person and the title is taken in the name of another. Hoivever, as stated in 89 C.J.S., Trusts, § 121, p. 975, it is not required, in order to establish a resulting trust, that he who claims the existence of the trust must “actually count out and pay down the money to the vendor; it is sufficient if the money or its equivalent is furnished to the person who pays the purchase money, or if there is an absolute obligation to pay, incurred by the person claiming the benefit of the trust, or by some other person on his behalf, as a part of the original transaction of purchase.” This rule is also found in Restatement, Trusts, § 456, at pp. 1389-1390:
“Purchase on Credit. Where a transfer of property is made to one person, and another person at the time of the transfer undertakes an obligation to pay the purchase price, a resulting trust arises in favor of the latter person, unless he manifests an intention that no resulting trust should arise.
“Comment: a. Purchase on Credit of ptirchaser. The rule stated in this Section is applicable where a person other than the transferee undertakes an obligation to the vendor to pay the purchase price.”
The applicability of this rule to the facts herein is apparent, since it is undisputed that the plaintiff undertook an obligation to the vendor to pay the purchase price of the interest conveyed to the defendant.
A further assignment of error is based upon the contention that plaintiff failed to prove payment of an aliquot part of the entire purchase price which would thereby entitle him to a corresponding’ aliquot interest in the property purchased.
In the case at bar, there ivas a purchase of property by two persons, and a conveyance of the legal title to two persons, without any indication as to the share or interest which each should take. It is the rule that when property is purchased by two persons without specifying any other interest, the inference arises prima facie that each owns an undivided one-half interest. Ivins v. Hardy, 120 Mont. 35, 40, 179 P.2d 745. Plaintiff claimed the one-half interest standing in the name of the defendant, and disclaimed the one-half interest conveyed to his wife. As hereinabove pointed out, the lower court found that plaintiff paid over one-half of the purchase price of the Blue Cloud Ranch. Thereby he paid more than the entire purchase price of the one-half interest so claimed by him. Hence, this does not appear to be a case of part payment requiring apportionment of an aliquot share corresponding to the partial payment, but is instead full payment, and more, for the one-half interest which is the sole subject of this lawsuit.
However, even though we accept defendant’s theory that the claimed trust affects the entire property rather than only the interest standing in the name of the defendant, the trust would nevertheless result under the rule stated in Restatement, Trusts, § 454, p. 1375, as follows:
“When a transfer of property is made to one person and a part of the purchase price is paid by another, a resulting trust arises in favor of the person by whom such payment is made in such proportion as the part paid by him bears to the totaL purchase price, unless he manifests an intention that no resulting trust should arise or that a resulting trust to that extent should not arise.” Emphasis supplied.
Here, the plaintiff unequivocally manifested his intention to claim, no more than the one-half interest standing' in the name of the defendant and the language above emphasized is therefore applicable.
It is stated in section 216, 54 Am.Jur., Trusts, p. 166, that "The cases uniformly hold that a trust will result in favor of one paying a part of the purchase money for property conveyed to another, where the sum contributed is for some special fractional interest or for a particular estate or interest therein.” In this case, the sum contributed by plaintiff was "for a particular estate or interest therein,” namely, the one-half interest conveyed to the defendant and was not a mere general payment.
Defendant further contends that the complaint failed to state a cause of action by reason of the absence of any allegation that a demand was made for a reconveyance. However, the testimony of the defendant herself clearly demonstrated that such a demand would have been met with refusal, and that the making of the demand would have been useless. Plaintiff’s contention is therefore answered by the rule that the law neither does nor requires idle acts. R.C.M.1947, § 49-124. While a demand is ordinarily required as a condition precedent to a suit by a cestui que trust ag'ainst a trustee, no demand is necessary when it would be of no avail. 90 C.J.S., Trusts, § 452, p. 867.
Other specifications presented by the defendant have been examined and found to be without merit.
The judgment is affirmed.
MR. CHIEF JUSTICE HARRISON and MR, JUSTICES ADAIR, ANGSTMAN and CASTLES, concur.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
This is an appeal by defendant railway company from an adverse judgment entered on a jury verdict in Fallon County district court.
The plaintiffs, Mildred S. Hurley, Gary D. Hurley, Michael D. Hurley, John James Hurley and Stanley Hurley, own the surface rights to Section 7, Township 8 North, Range 60 East, M.P.M. situate approximately seven miles north of Baker, Fallon County, Montana. The defendant owns the mineral rights on the same land.
In the summer of 1965 the defendant, Northern Pacific Railway Company, a corporation, determined to exercise its right to the minerals under the land in question and caused an oil well to be drilled in section 7. Defendant also built or improved an access road to the drill site. The oil well produced oil and the defendant continues to occupy the well site and to use the road.
The plaintiffs at trial acknowledge that the defendant had a right under its mineral reservation to drill and produce the oil well. It was also agreed that the defendant used a total of 7.5 acres of the surface area for the road and well site and also that $30 per acre was the fair market value of the land at the time drilling operations commenced. The defendant conceded prior to trial that it owed the plaintiffs $225 for the land.
The dispute in this action is over whether the Hurleys are entitled to something over and above the $225 conceded to be owing by the defendant based on the mineral reservation providing in part that the Northern Pacific would pay “to the grantee, or to his heirs or assigns, the market value at the time mining operations are commenced of such portion of the surface as may be used for such operations or injured thereby, including any improvements thereon.” (Emphasis supplied.)
The issue here is whether there was sufficient evidence to sustain the jury’s finding that a dam upon plaintiffs’ land in essence and in fact, was completely destroyed as of the time of trial by the construction of a roadway across a portion of the dam’s spillway. The plaintiffs’ theory is that the construction of the road destroyed the dam, that the dam was the only source of usable water on the land, and that since there is no other source of usable water, the entire section has been reduced in value by $10 per acre. The plaintiffs also claimed damages of $225 for the land as well as $10 for cost of treating a horse injured on defendant’s cattle guard and $5 for the removal of the cattle guard. The jury acceded to the plaintiffs’ demands and awarded general damages of $6,640 for depreciation of the property, injury to the horse and removal of the guard. The jury also awarded $3,000 punitive damages.
The plaintiffs contended at the trial that the construction of the road to the drilling site across their spillway caused erosion to commence on the spillway at the point it drops into the creek, that the erosion is absolutely irreversible; that the erosion will, because it is irreversible, invariably work its way back to and destroy the dam; that since there is absolutely no way to halt the erosion the dam is, in essence and in fact, destroyed at the present time; and, that they should be compensated now for its destruction since its destruction reduces the value of the land by $10 per acre.
Defendant first contends that there is insufficient evidence to support the finding of complete and present destruction, and that the award of $10 per acre was purely speculative and conjectural.
This Court said in Jackson v. William Dingwall Co., 145 Mont. 127, 134, 135, 399 P.2d 236, 240:
“Actionable negligence arises only from a breach of a legal duty. Cassady v. City of Billings, 135 Mont. 390, 340 P.2d 509. The essential elements of actionable negligence are the existence of a duty, a breach thereof, and a resulting injury. McCoy v. Courtney, 25 Wash.2d 956, 172 P.2d 596, 600, 170 A.L.R. 603.
“To sustain a cause of action based on alleged negligence, the plaintiff must prove both negligence and proximate cause.”
So far as duties are concerned in the instant case, it is “* # * well settled that the owner of the oil and mineral estate has a right to enter upon the surface of the property and make such use thereof as is reasonably required for the enjoyment of his estate therein * * *.” Wall v. Shell Oil Company, 209 Cal.App.2d 504, 25 Cal.Rptr. 908, 911.
“If a particular facility is necessary and convenient to the operation of the oil and mineral owner, it.may be placed anywhere upon the surface area in which he has the right of user, so long as such placement is reasonable under prevailing conditions and even though such placement in particular instances may work a hardship on the surface owner.
“* * * no owner of a particular surface division could be heard to assert that the particular placement of a facility was unreasonable solely because it could have been placed elsewhere just as conveniently.” Wall, supra, at p. 915.
What is reasonable will, of course, very with the circumstances of the particular case and the reasonableness of any particular exercise may also change. Wall, supra, at p. 915.
It is clear that the duty imposed on the defendant mineral owner was to act reasonably in using the surface while extracting its minerals. To show the defendant was negligent it must be shown that he did not act reasonably and did not make reasonable use of the surface area.
“Negligent conduct may be either:
“(a) an act which the actor as a reasonable man should recognize as involving an unreasonable risk of causing an invasion of an interest of another * * *” 2 Restatement of Tort 2d, § 284.
Or as stated in a long line of California eases:
“It is well settled that one test for determining the issue of negligence is whether a person of ordinary prudence should have foreseen or anticipated that someone might be injured by his action or nonaction. 19 CaL.Jur. 583, 563-4; Shearman & Redfield on Negligence, § 24. Or as stated in different terms: ‘Negligent conduct may be either: (a) an act which the actor as a reasonable man should realize as involving an unreasonable risk of causing an invasion of an interest of another; or, (b) a failure to do an act which is necessary for the protection or assistance of another and which the actor is under a duty to do. ’ Rest., Torts, § 284. And ‘The actor should recognize that his conduct involves a risk of causing an invasion of another’s interest, if a person, (a) possessing such perception of the surrounding circumstances as a reasonable man would have, or such superior perception as the actor himself has, and (b) possessing such knowledge of other pertinent matters as a reasonable man would have or such superior knowledge as the actor himself has, and (e) correlating such perception and-knowledge- with reasonable intelligence and judgment would infer that the act' creates an appreciable chance of causing such invasion.’ Rest., Torts, § 289.” (Emphasis supplied.) (Mosley v. Arden Farms Co., 26 Cal.2d 213, 216, 157 P.2d 372, 374, 158 A.L.R. 872.)
Further see Coats v. Chinn, 51 Cal.2d 304, 332 P.2d 289; Tucker v. Lombardo, 47 Cal. 2d 457, 303 P.2d 1041; Harris v. Joffe, 28 Cal.2d 418, 170 P.2d 454; Brandenburg v. Pacific Gas & Electric Co., 28 Cal.2d 282, 160 P.2d 909; and Herrera v. Southern Pacific Co., 155 Cal.App.2d 781, 318 P.2d 784.
Also the question of whether probability of injury is reasonably foreseeable is ordinarily a question of fact for the jury. Herrera v. Southern Pacific Co., supra, at 787.
Mr. Earl J. Whitaker, supervising engineer for the defendant on the drilling operation testified he recognized the dam as an improvement on the property; that he knew a spillway ran from the dam to the creek; that he knew the location of the spillway; that he knew spillways were best where they maintain a gentle incline and have grass cover; and, knowing all of this he still put the access road across the spillway. Mr. Whitaker further testified that scoria was dumped on top of the grass of the spillway; no grass was cut or bladed up on the spillway; and, no equipment was turned in .the spillway area. All this was done to leave the spillway as undisturbed as possible.
From Mr. Whitaker’s testimony and also from his background, we feel the evidence was sufficient for the jury to find that the defendant by not cutting the grass on the spillway and in not turning equipment on it reasonably foresaw risk of harm to the spillway. We also feel the evidence was sufficient for the jury to find the defendant was negligent, i.e., acted unreasonably, in constructing the road across the spillway creating an unreasonable risk of harm. We think.the evidence supports the jury finding of negligent breach of the duty, owed the plaintiffs.
Section. 93-301-4, E.C.M.1947, provides:
“The law does not require demonstration; that is, such a degree of proof as, excluding possibility of error, produces absolute certainty, because such proof is rarely possible. Moral certainty is only required, or that degree of proof which produces conviction in an unprejudiced mind.”
Section 93-301-13, E.C.M.1947, provides:
“The evidence is deemed satisfactory which ordinarily produces moral certainty or conviction in an unprejudiced mind. Such evidence alone will justify a verdict. Evidence less than this is denominated slight evidence.”
Also “* * * the rule that a verdict cannot be based on speculation and conjecture is too well established to require the citation of authority.” McDonald et al. v. Royal Ins. Co., Ltd., 98 Mont. 572, 575, 40 P.2d 1005. See also Morton v. Mooney, 97 Mont. 1, 33 P.2d 262, and Fisher v. Butte Electric Ry. Co., 72 Mont. 594, 235 P. 330.
Furthermore, when a judgment is assailed on the grounds of insufficiency of evidence to support the judgment, “* * * the rule is that, in order to sustain the judgment, the evidence must preponderate in favor of the findings on which it is based.” Evans v. Silver Bow Motor Car Co., 96 Mont. 156, 163, 29 P.2d 381.
We do not think the plaintiffs have met the burden placed upon them by the rules set forth above, nor do we think the evidence preponderates in favor of the finding that the dam has been totally destroyed. The road across the spillway was Constructed in the summer of 1965; the case came on for trial in February 1968. Testimony at the trial indicated that as of the time of trial a minimum of 260 feet of spillway existed between the dam and the point where the water drops off the spillway into the creek. While photographs introduced by plaintiffs Showed erosion occurring at the point the spillway drops into the creek, other photographs introduced by the defendant showed there was some erosion, in the same place even before the road was laid across the spillway.
The plaintiffs relied on Mr. Bert Halmann as their expert witness to establish that the dam and spillway could never be saved since erosion had already commenced. Mr. Halmann, since 1951, had built over 30 dams, constructed several miles of roadways to drilling sites, repaired a number of dams with holes through their middles, and moved spillways out and built dams up. It is significant, however, that there was no evidence Halmann ever attempted to stop erosion of a spillway by any methods of repair suggested by defendant’s expert, Mr. Tom Hardesty. In fact, in answer to a question as to whether he had ever filled in a spillway with rocks in order to prevent cutting back, Mr. Halmann replied: “I have never done it.”
In our view the evidence does not preponderate in favor of the jury finding that the dam and spillway cannot be saved and that they are at the present completely destroyed. The judgment below must be reversed in so far as it awarded general damages for reduction in value of the property. We are not to be understood to be holding that the surface owner is forever precluded from recovering damages in the event that such damage is hereafter shown to have occurred by reason of the acts of the defendant, in other words, if erosion does actually damage or destroy the dam and spillway.
As to the award of punitive damages we have already commented that there was sufficient evidence to enable the jury to find the defendant acted unreasonably in the construction of the road and created an unreasonable risk of harm. There .also was testimony that the proposed location of the access road was discussed by an employee of the defendant with one of the plaintiffs and from that conversation the impression was given that the road would go down the old section line, but thereafter and wihtout any further consultation another route was adopted, apparently one that was less expensive to construct and more convenient from the defendant’s standpoint. Then too, while- not great in the amount of damage sustained, the installation of ■ an inadequate and defective cattle guard which resulted in injury to one of plaintiff’s horses is further indicative of defendant’s disregard of plaintiff’s rights in the premises and created further unreasonable risk of harm.
While defendant contends that this issue is controlled by our ruling in Westfall v. Motor Ins. Corp., 140 Mont. 564, 374 P.2d 96. Plaintiffs respond that the issue falls under the ruling in State ex. rel. Larson v. District Court, 149 Mont. 131, 423 P.2d 598. In view of the fact situation appearing in this record we agree with plaintiff’s contention and therefore the award of punitive damages is sustained. The award of $225 for the taking of the 7.5 acres used for the road and drilling site should stand, and the award of damages for veterinary care for the horse and removal of the cattle guard must also stand.
The cause is remanded to the district court with directions to amend its judgment in these specified particulars and as so amended the judgment is affirmed.
MR. JUSTICES HASWELL, CASTLES, JOHN C. HARRISON and BONNER, concur.
|
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JUSTICE NELSON
delivered the Opinion of the Court.
Plaintiffs/Appellants appeal an order of the Eleventh Judicial District Court, Flathead County, granting summary judgment to the defendants and denying plaintiffs’ motion to alter or amend that judgment. We reverse.
The issues on appeal are as follows:
1. Does the Covenant to Dedicate, entered into by the defendants in 1975, run with the land?
2. Does the eight-year statute of limitations bar the plaintiffs’ cause of action?
3. Did the District Court err in granting summary judgment in favor of the defendants?
In 1975, the defendants Edgar and Helen Granrud and Duane and Betty Bitney (the defendants) owned certain real property in Flathead County known as Stillwater Terrace, Unit 2 (Unit 2). The defendants applied for summary review of their subdivision application on February 18, 1975, and a summary review report was subsequently prepared. On May 19,1975, the defendants entered into a “Covenant to Dedicate” with Flathead County and its Board of County Commissioners. This document provided, in pertinent part:
... in consideration of the Board of County Commissioners of Flathead County, Montana, approving the covenantors map or plat of Stillwater Terrace, Unit 2 ... the Covenantors agree in the future to donate as a County Road [portions of Lots 8 and 9]. Covenantors agree to donate the beforementioned Easterly 60 feet of Lots 8 and 9 of Stillwater Terrace, Unit 2, 233.54 feet in length in the future if the Covenantee will agree to approve the Stillwater Terrace, Unit 2 map for recording.
The Covenantors further agree for the consideration before stated that any future conveyance of Lots 8 or 9 of Stillwater Terrace, Unit 2, Flathead County, Montana, will be subject to the terms of this Agreement, and the Covenantors further agree that they will improve the Easterly 60 feet of Lots 8 and 9 of Stillwater Terrace, Unit 2 said 60 foot section being 233.54 feet in length, and that such improvements on the portions of Lots 8 and 9 will comply with the standards for County Roads. ...
The same day, the Board of County Commissioners accepted the plat for Unit 2 subject to the “restrictive covenants to dedicate.”
Thereafter, on June 12, 1975, the plaintiff Shirley Scherpenseel purchased Lot 9 of Unit 2 from the Granrud defendants. Although not in the record, it is alleged that, on July 28, 1975, the plaintiffs Robert and Theresa Eickert purchased Lot 8 in Unit 2 from the Granrud defendants, and the defendants have not denied this allegation.
On July 31, 1990, the plaintiffs made a formal demand to the defendants requesting that they perform in accordance with the Covenant to Dedicate. On July 8,1991, the plaintiffs filed a complaint against the defendants, alleging that they had an obligation to construct a road abutting the plaintiffs’ property to county specifications. The plaintiffs also sued Flathead County, requesting that, after the road was constructed, the county be required to accept and maintain that road as a county road.
On October 9,1991, the plaintiffs filed a Motion for Determination of Plaintiffs’ Standing to Seek Declaratory Relief. On December 10, 1991, the District Court issued an order finding that the plaintiffs had standing to pursue the action. Thereafter, on September 30,1992, the Bitney defendants filed a Motion for Summary Judgment. Although the other defendants did not file similar summary judgment motions, the Bitneys’ motion was apparently considered to be inclusive of all defendants. On March 15,1993, the District Court granted summary judgment in favor of all the defendants on the basis that the plaintiffs’ action was time-barred by the statute of limitations. On March 26,1993, the plaintiffs filed a Motion to Alter or Amend Order Granting Summary Judgment, which was denied by the District Court on April 26,1993. From the March 15,1993 and April 26,1993, orders, the plaintiffs appeal.
Our standard in reviewing a grant of summary judgment is the same as that initially utilized by the district court. McCracken v. City of Chinook (1990), 242 Mont. 21, 24, 788 P.2d 892, 894. Summary judgment is proper when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.P.
I — COVENANT RUNNING WITH THE LAND
The plaintiffs contend that the Covenant to Dedicate runs with the land, thus benefitting their property and binding the defendants to make the agreed-upon road improvements. We agree.
It is undisputed that, in 1975, when the subdivision plat and Covenant to Dedicate at issue here were accepted by the Board of County Commissioners and were respectively filed and recorded in Flathead County, the subdivision and plat were subject to the requirements of the Montana Subdivision and Platting Act (the Act), §§ 11-3859, et seq., RCM, 1947, as amended, (now §§ 76-3-101, et seq., MCA).
The purposes of the Act were set forth at § 11-3860, RCM, 1947, as amended, (now § 76-3-102, MCA), as follows:
It is the purpose of this act to promote the public health, safety, and general welfare by regulating the subdivision of land; to prevent overcrowding of land; to lessen congestion in the streets and highways; to provide for adequate light, air, water supply, sewage disposal, parks and recreation areas, ingress and egress, and other public requirements; to require development in harmony with the natural environment; to require that whenever necessary, the appropriate approval of subdivisions be contingent upon a written finding of public interest by the governing body; and to require uniform monumentation of land subdivisions and transferring interests in real property by reference to plat or certificate of survey, (emphasis added)
With minor amendments not at issue here, those purposes have remained in the Act to the present.
Under the statutory definition in place in 1975, a subdivision was a division of land which created one or more parcels containing less than twenty acres. Section 11-3861(12), RCM, 1947, as amended. That remained true at all times pertinent to this litigation. See § 76-3-103(15), MCA.
In this case, the warranty deed from the Granruds to Shirley Scherpenseel described the real property as follows:
Lot 9 of Stillwater Terrace — Unit 2, as shown on the plat or map thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana.
The plat referred to in this real property description is the one accepted by the Board of County Commissioners on May 19,1975 and subsequently filed. The plat was accepted after the Covenant to Dedicate was executed by the defendants and “in consideration of the Board of County Commissioners of Flathead County, Montana, approving the covenantors map or plat of Stillwater Terrace, Unit 2.”
Section 11-3870(3), RCM, 1947, as amended, (now § 76-3-304, MCA) provided in 1975, and still provides that:
The recording of any plat made in compliance with the provisions of this act [now referred to as chapter] shall serve to establish the identity of all lands shown on and being a part of such plat. Where lands are conveyed by reference to a plat, the plat itself or any copy of the plat properly certified by the county clerk and recorder as being a true copy thereof, shall be regarded as incorporated into the instrument of conveyance and shall be received in evidence in all courts of this state.
Section 11-3869, RCM, 1947, as amended, (now § 76-3-306, MCA), provided in 1975, and still provides, that:
All covenants shall be considered to run with the land, whether marked or noted on the subdivision plat or contained in a separate instrument recorded with the plat.
In this case, the Covenant to Dedicate was a separate instrument which was recorded with the Clerk and Recorder. Although not in the record, the plaintiffs also contend that the Covenant to Dedicate is noted on the recorded plat, and the defendants have not denied this contention. This contention is supported by the Board of County Commissioners’ minutes, dated May 19, 1975, which state that the plat of Unit 2 was accepted “with restrictive covenants to dedicate.”
Accordingly, we hold that, under the above-cited provisions of the Act, the Covenant to Dedicate at issue here clearly was and is one running with the land for the benefit of the plaintiffs and binding upon the defendants and, further, that the covenant was incorporated in plaintiffs’ deed of conveyance by operation of law.
Ruling to the contrary, the District Court relied solely on the case of Majers v. Shining Mountains (1986), 219 Mont. 366, 711 P.2d 1375, in granting summary judgment to the defendants. However, Majers is not on point. In that case, the defendant subdivided a 7,000 acre ranch. In order to sell the lots, the defendant prepared and filed subdivision plat maps. These plats were filed prior to the effective date of the Montana Subdivision and Platting Act and were not subject to its provisions. The plaintiffs purchased lots within the subdivision and allegedly were told by the defendant’s personnel that roads would be constructed and maintained by the defendant and that a dam would be constructed across a creek to form a lake suitable for fishing and other recreational pursuits. When the plaintiffs requested that the defendant construct the roads, the defendant refused. The plaintiffs then filed an action alleging an implied covenant based on the verbal representations allegedly made by the defendant’s personnel. Majers, 711 P.2d at 1376. We held that the plats themselves did not give rise to a promise to construct roads, and we remanded for a determination of what verbal representations were made when the defendant sold the lots to the plaintiffs. Majers, 711 P.2d at 1378. We also held that the appropriate statute of limitations on an implied covenant arising from the use of written documents was eight years, the limitation for actions based on a written contract. Majers, 711 P.2d at 1378-79.
We disagree with the District Court’s conclusion that Majers is “very similar” to the case at hand. First, the subdivision and plat at issue in Majers were not subject to the Montana Subdivision and Platting Act, as are the subdivision, plat and covenant at issue in the present case. Second, Majers dealt with oral representations giving rise to an implied covenant. In the case at hand, an express, written covenant was executed and recorded. Therefore, we conclude that Majers is not sufficiently similar to the instant case so as to warrant reliance thereon.
In passing, we note that the Board of County Commissioners’ minutes refer to the covenant at issue as a “restrictive” covenant. A restrictive covenant is defined as a “[pjrovision in a deed limiting the use of the property and prohibiting certain uses.” Black’s Law Dictionary 1182 (5th ed. 1979). On the other hand, an affirmative covenant is defined as a covenant “in which the party binds himself to the existence of a present state of facts as represented or to the futme performance of some act.” Black’s Law Dictionary 327 (5th ed. 1979). We conclude that, in actuality, the covenant at issue here is an affirmative covenant, instead of a restrictive covenant, notwithstanding the reference in the Board of County Commissioners’ minutes.
II — STATUTE OF LIMITATIONS
Plaintiffs filed their action in 1991, some sixteen years after purchasing their properties from the Granruds, but within eleven months of demanding, in writing, that the Bitneys and Granruds perform in accordance with the Covenant to Dedicate. The District Court ruled that plaintiffs’ cause of action was time-barred by the eight-year statute of limitations provided for in § 27-2-202, MCA. The plaintiffs contend that their action is not time-barred by the statute of limitations. We agree with the plaintiffs.
Section 27-2-202, MCA, provides that an action upon any obligation founded upon an instrument in writing must be commenced within eight years. We have previously held that a deed constitutes a contract founded upon a written instrument for purpose of invoking the eight-year statute of limitations applicable to written contracts. Neils v. Deist (1979), 180 Mont. 542, 545-46, 591 P.2d 652, 654-55. Similarly, we have applied the eight-year statute of limitations to cases involving covenants. See, for example, Majers, 711 P.2d at 1378-79; U.V. Industries, Inc. v. Danielson (1979), 184 Mont. 203, 228, 602 P.2d 571, 586 (action to enforce an implied covenant in an oil and gas lease). Accordingly, the eight-year statute of limitations is applicable here to an action to enforce an affirmative, written covenant running with the land incorporated by operation of law in plaintiffs’ deed of conveyance.
However, while the eight-year statute of limitations is the appropriate statute, we must, nevertheless, determine when the eight-year limitations period began to run in this case.
The plaintiffs contend that the statute of limitations did not begin to run until they made a demand for performance. The defendants argue that the eight-year limitations period began to run on May 19, 1975, the day the Covenant to Dedicate was signed.
This is an issue of first impression in Montana. What little case law there is from other jurisdictions is annotated at 17 ALR 2d 1251. Those cases, however, in addition to being relatively old, are not factually analogous to the instant case, nor do such authorities consider the statute of limitations question in the context of the requirements of a land use law such as the Act.
As a point of departure, however, we note that other courts have generally taken one of three different approaches in determining when a statute of limitations begins to run on an action to enforce an affirmative, written covenant running with the land. One approach holds that the statute of limitations does not begin to run until an actual demand for performance is made. A second approach modifies the first by requiring, through application of the doctrine of laches to old, stale or untimely claims, that the demand be made within a reasonable period of time. A third approach dispenses with the necessity for a demand by taking the position that there is a continuing breach so that a new cause of action arises from day to day.
Taking into consideration the facts of this case, our State’s comprehensive scheme of land use laws and regulations, and Montanans’ unique inalienable right to a clean and healthy environment embodied in Article II, Section 3, of our Constitution, we conclude that the first approach above-mentioned best effectuates the purposes and public policy of the Act, while, coincidentally, providing a definite and easily determinable time frame within which actions must be commenced to enforce affirmative, written covenants running with the land.
As in this case, developers of real property often enter into affirmative, written covenants and agreements as a part of the subdivision process in order to obtain the approval of the governing body to file a subdivision plat. In many cases, roads and other improvements required by the local government, by applicable laws or rules and/or by the developer’s covenants and agreements are not made immediately, but, rather, are constructed over a period of time as parcels or units of the subdivision are sold.
When developers fail to timely construct roads and improvements agreed upon or otherwise required, innocent purchasers of the property, and in some instances the local government and its taxpayers, are left to shoulder the burden and expense involved in constructing and financing the roads and improvements that were properly the responsibility of the developers.
Worse, the purposes of the Act, as set forth at length in § 76-3-102, MCA, are frustrated to the ultimate detriment of the public, the environment and the orderly, safe and harmonious development of Montana’s lands. Simply put, public policy, as expressed in the Act, demands that real estate developers be strictly held to their covenants and agreements, and that they not be allowed to gain the advantage of their failure to perform by the fortuitous passage of time.
Accordingly, we hold that the eight-year statute of limitations in which to commence an action to enforce an affirmative, written covenant running with the land does not begin to run until the date on which an actual demand for performance is made.
In this case, the plaintiffs demanded performance in writing on July 31,1990, and filed a formal-complaint on July 8,1991. Based on the rule, set forth above, that the eight-year statute of limitations did not begin to run until the demand for performance was made, we hold that the plaintiffs’ complaint, filed on July 8, 1991, was not time-barred by the eight-year statute of limitations of § 27-2-202, MCA.
Ill — SUMMARY JUDGMENT
The plaintiffs contend that the District Court erred in granting summary judgment to the defendants. We agree.
Summary judgment is proper when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.R In this case, the defendants acknowledged that there was no genuine issue of material fact when they moved for summary judgment. However, we cannot agree that the defendants are entitled to judgment as a matter of law. Clearly, they are not.
As we held above, the Covenant to Dedicate is an affirmative, written covenant running with the land and, as such, is meant to benefit plaintiffs’ property. Therefore, there is an obligation on the defendants to perform pursuant to the terms of their covenant. In addition, the plaintiffs’ action is not time-barred by the applicable eight-year statute of limitations. Therefore, we hold that the District Court erred in granting summary judgment to the defendants.
Reversed and remanded for further proceedings consistent with this opinion.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, TRIEWEILER and GRAY concur.
We note that the record in this case has not been extensively developed; for example, the Eickerts are named plaintiffs, but their deed of conveyance is not in the record. However, this opinion applies to them with equal weight, assuming that their deed contains the same or similar language as the deed from the Granruds to Shirley Scherpenseel.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
This is an appeal from a judgment based on a jury verdict for the defendant (Goff) in the District Court of the Nineteenth Judicial District, Lincoln County.
Plaintiff (Helmke) filed his action against Goff alleging that on August 25, 1975 on Montana secondary highway no. 202, approximately 4.4 miles from Troy, Montana, Goff negligently drove his 1966 Volkswagen sedan in such a manner that it went out of control, off the highway, and rolled over several times. Helmke, a passenger in the vehicle at the time of the accident, was injured.
In his answer, Goff admitted the happening of the accident, but denied that any negligent act on his part caused the plaintiff’s injuries. Beyond the general denial of negligence, no affirmative defenses were interposed by Goff.
At the close of evidence in the trial, both parties moved for directed verdicts. The motions were denied and the cause submitted to the jury. A general verdict was found for Goff. Helmke moved for a judgment notwithstanding the verdict, or in the alternative, for a new trial. His motions were denied and Helmke duly filed his appeal to this Court.
The suit arises out of a single vehicle accident which occurred on a clear sunny August afternoon. The investigating highway patrolman found that the automobile crossed the center line of the two lane highway onto the unpaved left shoulder, skidded 49 feet back into the right lane, then left the roadway on the right-hand side, overturned and rolled some 86 feet before coming to rest in a ditch on the right-hand side of the road. There were no defects or obstructions in the roadway and the pavement was dry. The driver testified that his visibility was unhampered and that his car had no mechanical defects. He testified he was not tired, had no physical ailments or infirmities to impede his driving, and he was not intoxicated. The evidence has shown, however, that he and plaintiff had consumed a six-pack of beer in the morning and later in the day, just before the accident, had been passing a wine bottle back and forth and that the wine was probably half consumed at the time of the accident. He agreed that Helmke had not contributed to the happening of the accident. Neither Helmke nor Goff knew how the accident happened and testified to that effect at the trial.
There was some contention during the trial that there may have been a sudden loss of air in one of the tires of the vehicle, but the patrolman testified that such an incident would have been the result of the accident itself.
In its charge to the jury, the trial court instructed both on ordinary negligence and res ipsa loquitur. With respect to ordinary negligence, it told the jury that a violation of law had to be the proximate cause of the plaintiff’s injuries; that a violation of an applicable statute was negligence as a matter of law; and instructed on the “basic rule of vehicle operation,” section 32-2144(a), R.C.M.1947, now section 61-8-303(1) MCA, and upon the necessity of driving on the right half of the road, section 32-2151, R.C.M.1947, now section 61-8-321 MCA.
The District Court did not take the MJIG instruction on res ipsa loquitur, but instructed as follows:
“If you find, (1) that injury to the Plaintiff was proximately caused by the fact that the automobile which Defendant was driving left the road and rolled over; (2) that at the time of said accident the automobile in which the Plaintiff was injured was under the Defendant’s exculsive control or management, so that the Defendant had superior means for determining the cause of the accident; and (3) that in the normal course of events the accident and ensuing injury would not have occurred without the negligence of the person having control and management of the automobile, then you may find that the accident and ensuing injury were caused by the negligence of the Defendant.
“However, you shall not find that a proximate cause of the occurrence was some negligent conduct on the part of the defendant unless you believe, after weighing all the evidence in the case and drawing such inferences therefrom as you believe are warranted, that it is more probable than not that the occurrence was caused by some negligent conduct on the part of the Defendant.”
The trial court also gave the “mere happening” instruction as follows:
“The mere fact that an accident happened, considered alone, does not give rise to an inference that it was caused by negligence or that any party to this action was negligent.”
We restate the issues on appeal as follows:
1. Assuming a res ipsa case, is the court or jury compelled to find for the plaintiff where the defendant does not attempt to explain the accident or to show his lack of negligence?
2. What is the effect of the “mere happening” instruction in a res ipsa case?
3. Is the verdict of the defendant here supported by the evidence?
Under the first issue, Helmke contends that the trial court should have granted his motion for a directed verdict, or for judgment notwithstanding the verdict. Goff, on the other hand, though admitting that this is a res ipsa case, nevertheless states that the circumstances shown in the evidence, that it happened quite fast, that there were two flat tires on the automobile after the accident, that Helmke could point to no negligent act in the driving of the automobile, and a few other circumstances, meant that the jury was properly allowed to decide the issue.
The procedural effect of the res ipsa case, that is whether the burden of proof upon the establishment of such a case shifts to the defendant, has been discussed in some Montana cases. In Whitney v. Northwest Greyhound Lines (1952), 125 Mont. 528, 242 P.2d 257, 258, this Court examined the problem but declines to decide it:
“Error is predicated upon instructions given over plaintiff’s objection and in refusing some instructions offered by plaintiff. The principal legal question presented is whether the doctrine of res ipsa loquitur applies under facts and circumstances presented by the record, and if so, was the jury properly instructed on the subject. Interwoven with this general subject is the usual difference of opinion between counsel as to whether under that doctrine there is a shifting of the.burden of proof. On that point the courts are in disagreement. Even this court has gone both ways on the question.”
Decisions vary from state to state as to whether the burden of proof shifts to the defendant in a res ipsa case. Authorities attempt to explain the disparity in these decisions by determining whether the jurisdiction follows the “permissible inference” theory or the “rebuttable presumption” theory. See 2 Harper and James, Law of Torts § 19.11, pp. 1100-1102. It is safe to say that the difference between an inference and a presumption escapes all but the most nimble legal minds. Statutory definitions do not help much. Section 93-1301-2, R.C.M.1947, now section 26-1-501 MCA defines an “inference” as a “deduction . . . from the facts proved, without an express direction of the law to that effect.” On the other hand, section 93-1301-3, R.C.M.1947 (now repealed), defined a presumption as a “deduction which the law expressly directs to be made from particular facts”. Both inferences and presumptions are deductions made from facts; both are forms of indirect evidence. Section 26-l-102(4)(b) MCA formerly section 93-1301-1, R.C.M. 1947. The difference seems to be that a presumption is founded upon an express direction of “the law”.
It is not necessary for us, however, to attempt to classify this jurisdiction as one following the “permissible inference” theory, or the “rebuttable presumption” theory. It is our opinion that a res ipsa case does not put the defendant in a position of having to prove an affirmative defense to escape liability. The language in Sweeney v. Erving (1913), 228 U.S. 233, 240, 33 S.Ct. 416, 418, 57 L.Ed. 815 expresses our position:
“... Res ipsa loquitur means that the facts of the occurrence warrant the inference of negligence, not that they compel such an inference; that they furnish such circumstantial evidence of negligence where direct evidence of it may be lacking, but it is evidence to be weighed, not necessarily to be accepted as sufficient; that they call for explanation or rebuttal, not necessarily that they require it; that they make a case to be decided by the jury, not that they forestall the verdict. Res ipsa loquitur, where it applies, does not convert the defendant’s general issue into an affirmative defense. When all the evidence is in, the question for the jury is, whether the preponderance is with the plaintiff.”
Obviously, the question of whether the court, at the close of all the evidence in the res ipsa case, should grant a motion for directed verdict, or later a judgment notwithstanding the verdict, will depend upon the facts proved in each individual case. We can conceive of situations where the inference of negligence in a res ipsa case would be so strong that persons of reasonable minds could not reach differing conclusions as to the negligence of the defendant. When that occurs, the course to be followed by the District Court should be no different than in any other case when faced by a motion for a directed verdict.
In this case, we do not find that the District Court abused its discretion in refusing to grant a directed verdict or a judgment n.o.v.
The inferences of fact raised by plaintiff’s case were to be determined by a jury, which is the trier of all fact issues where a jury trial is demanded. Rule 39(a), Mont.R.Civ.P.
The second issue, the giving of the “mere happening” instruction in a res ipsa case, is of more grave consequence, and in our view requires a reversal of this case.
The statement that the fact of an accident or collision alone is no evidence of negligence has found its way into a number of opinions from this court. See for example, Baatz v. Noble (1937), 105 Mont. 59, 69 P.2d 579; Cowden et al. v. Crippen (1936), 101 Mont. 187, 53 P.2d 98; Autio v. Miller (1932), 92 Mont. 150, 11 P.2d 1039. However, we pointed out in Hunsaker v. Bozeman Deaconess Foundation (1978), 179 Mont. 305, 588 P.2d 493, that while occasionally, a statement in an opinion may also be a good jury instruction, opinions are not designed to be jury instructions.
Also in Hunsaker, with respect to a “mere happening” instruction in a res ipsa case, this Court said:
“In Graham v. Rolandson (1967), 150 Mont. 270, 435 P.2d 263, an ordinary negligence action, we condemned an ‘unavoidable accident’ instruction. There we concluded that it injected a straw issue into the case and is confusing to the jury. This is somewhat akin to ‘the mere fact of an injury’ instruction as was given in this case. In Gagosian v. Burdick’s Television & Appliances (1967), 254 Cal.App.2d 316, 62 Cal.Rptr. 70, California eliminated ‘the fact of an injury’ instruction from ordinary negligence actions, stating:
“ ‘... Since it but elucidates the obvious to the jury, and need not be given to meet any rule of appellate procedure, we join heartily in the recommendation of its authors for its “decent burial”. The trial judge who strikes the “mere happening” instruction from his instruction book and completely erases it from his memory will save time in instruction and much in retrial after reversal.’
“We also conclude that in an ordinary negligence action that such instruction should be given a ‘decent burial’ in this State.” 588 P.2d at 506, 507.
The evil in giving such an instruction in a res ipsa case is that the jury may consider that they are foreclosed from considering the evidence provided by the happening of the accident itself. Jensen v. Minard (1955), 44 Cal.2d 325, 282 P.2d 7, 9. Therefore we hold the instructions here to be so incompatible as to require reversal.
In view of our holding on the second issue, it is unnecessary to review whether the evidence supported the defendant’s verdict.
The cause is reversed and remanded for a new trial.
MR. JUSTICES DALY and SHEA concur.
MR. JUSTICE HASWELL and JUSTICE HARRISON would affirm the judgment of the District Court.
|
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MR. CHIEF JUSTICE ADAIR:
This is an action by the plaintiff Lewis J. Marlin to recover money which he paid to the defendant R. P. Drury for an interest in a lease on certain placer mining property. The action is based solely on three alleged fraudulent representations charged to have been made in negotiating the deal.
The action was instituted November 18, 1949. The complaint charges that four months previous, to-wit, on or about July 18, 1949, the defendant Drury and one Peter M. Mosier exhibited to plaintiff certain gold nuggets and dust and fraudulently and falsely represented to plaintiff: (1) That the gold nuggets and dust so exhibited came from certain leased placer mining claims in Deer Lodge county; (2) that they were about to organize a corporation to work such placer ground, and (3) that such placer mining venture would return vast profits to plaintiff through stock dividends in the proposed or intended corporation.
The complaint further avers that, relying upon the aforesaid representations, plaintiff paid to the defendant Drury, sums aggregating $1,000; that plaintiff received no consideration for the money so paid in the way of preincorporation subscription, receipt or any other evidence of payment except he has his cancelled checks showing the payments so made; that any property which defendant owns or leases for mining purposes is worthless; that defendant did not organize the corporation as he had promised; that all the alleged representations were made for the purpose of deceiving and frahdulently taking plaintiff’s money; that plaintiff demanded the return of his money and that defendant refuses to pay back any part of it.
The answer of the defendant Drury admits: That he and Mosier exhibited gold nuggets and dust to plaintiff; that plaintiff made payments to defendant aggregating $1,000; that plaintiff received no receipts for such payments other than his cancelled checks; that no corporation has been organized for the working and mining of the placer property; that plaintiff demanded the sum of $1,000 from defendant and that defendant has refused to pay same or any part thereof. The answer denies all other allegations of the complaint and, for a separate affirmative defense, alleges the defendant Drury, having acquired a lease on the placer mining property, was in need of capital to work same; that Peter M. Mosier suggested that the plaintiff Marlin might be interested in buying in on the deal; that defendant and Mosier contacted plaintiff and defendant offered plaintiff a 1% interest in the lease for $1,000; that plaintiff accepted such offer and gave defendant a check for $750; that defendant agreed to and that he did hold such check until plaintiff had an opportunity to examine such mining property; that some two or three days later plaintiff personally examined the placer property in the absence of defendant and thereafter plaintiff stated his willingness to go in on the' deal and then gave defendant a further check for $250, whereupon defendant cashed both checks; that it was agreed that thereafter the various persons contributing capital to such mining venture would get together and form a corporation, partnership or syndicate as the majority of such contributors should agree upon; that no false or fraudulent representations of any kind were made to plaintiff and that he freely and voluntarily paid his money into such placer mining venture.
The plaintiff filed a reply placing in issue the new matter pleaded in the answer. Thereafter the issues were tried to a jury resulting in verdict and judgment for plaintiff from which judgment the defendant has appealed.
Defendant’s motion for nonsuit made at the close of plaintiff’s case in chief was denied as was defendant’s motion for a directed verdict made at the close of all the evidence in the case.
There is no evidence whatever to sustain the charge that defendant falsely represented that the gold nuggets and dust exhibited to plaintiff came from the aforesaid placer mining property. Both the defendant Drury and the witness Peter Mosier testified that the gold so exhibited came from such leased placer mining property and their testimony stands uncontroverted and in his brief on this appeal the plaintiff Marlin admits “that the exhibition of the nuggets was not proven fraudulent” and states that he would not argue such contention.
There is likewise no evidence to sustain the charge that the leased placer mining property is worthless and again in his brief herein the defendant admits “that it was not proven that the property was valueless” and again did he state that he would not argue such contention here. The property was leased from William R. Allen, former Lieutenant Governor of Montana who testified that the ground was valuable for placer mining operations and that while the mining operations in the summer of 1949 were most limited, he had received therefrom as his 10 % royalty under the lease the sum of $400.00.
The evidence shows: That the defendant Drury first tested the placer mining ground here involved for some 30 days with a “Long Tom” and a rocker and that by such means he had recovered considerable gold; that about July 18, 1949, and following such testing, he commenced placer mining operations on the property; that for such mining operations he purchased one dragline and rented another; that he also obtained a 'washing plant to be operated in connection with the dragline; that in such placer mining he employed eight men,- — four of whom worked on the draglines and four on the washing plant; that the dragline which he purchased was found to be defective and that he experienced continual breakdowns with the machine; that it could not be made to operate properly and efficiently; that upon the seller’s refusal to make the machine work defendant declined to make further payments thereon and the seller thereupon repossessed it; that after he had acquired his lease defendant excavated about 5,000 yards of earth on the property about 50% of which was “overburden” or top soil; that because of the repeated breakdowns and the unsatisfactory eondi- . tion of the machinery defendant was able to get in but about 10 days of actual operation with the" draglines and washing plant that season, but that from such limited operations he recovered and sold about $3,800 worth of gold and that defendant’s cost of operation ran about $4,800 so that the 1949 mining operations were conducted at a loss. However, it would appear that with proper machinery, equipment and operation the property would produce substantial profit and that defendant was justified in anticipating that a profit would result to him and to the others associated with him in the venture had it not been for the repeated machinery breakdowns and the expense and delays occasioned.
The evidence shows that Peter M. Mosier was a mining engineer and a mutual friend of both the plaintiff Marlin and the defendant Drury; that Mosier had no interest in the placer mining property nor in the lease thereon; that on different occasions both prior and subsequent to World War II and for a period of about three or more years the plaintiff Marlin had worked for Mosier in a mine at Radersburg, Montana; that such mine was closed by the government and that thereafter Mosier was employed by the defendant Drury on a salary basis examining, testing and checking various mining properties in Western Montana. The evidence further shows that at the time the plaintiff Marlin examined the placer property and invested in the venture he was then employed as a miner on other mining property located near and in the same county in which the leased holdings were situate.
At the trial the plaintiff Marlin testified on direct examination :
“Q. Did Mr. Drury make any statements to you concerning a corporation? A. He did. He said they were going to form a corporation as soon as possible. There is no corporation formed that I know of.
“Q. Were you to receive stock in that corporation?
“Mr. Anderson: Objected to, as leading, if the Court please. Let the witness testify as to what was said.
“Q. What else was said about the corporation? A. They were to form this corporation, and I was to get dividends. They said this thousand dollars would bring me more than my wages would bring me for working for the company would bring in.”
On cross-examination Marlin testified:
“Q. Didn’t he say to you at that time it would depend upon the people who had invested in it, whatever they wanted to do — you among them — as to whether they would have a corporation, syndicate, partnership, or common law trust? A. No; the only thing he ever mentioned to me was about forming this corporation is all I know.
“ Q. He did tell you that, at that time, he didn’t know whether the dividends would be paid that year, or next year? A. That year or next year.
“Q. That would be 1949, or 1950? A. Yes, sir. * * *
“Q. Mr. Marlin, do you know whether or not Mr. Drury still has a lease on these premises? A. No, I don’t.
“Q. Did you ever ask him for an assignment of interest in it? A. No.”
The defendant Drury testified:
“Q. Was anything said, further, in that conversation about, if he came in, what would be done with reference to the future organization? A. I told him, for $1,000.00 I would give him a one per cent interest in the lease, and I would act as trustee until the property was in proper operation, where we could see where we was going, and we would all get together, every one that was interested, and decide what kind of an operation, an organization, corporation, partnership, syndicate; I would leave it to whoever put up the money.
“Q. There were other investors? A. Yes.”
The record shows that in addition to the investments of the defendant Drury and of the plaintiff Marlin there were three other investors in the lease, each having a 1 % interest for each $1,000 invested; that one Louie Lineweaver had $5,000 invested and that Olaf Larson and Ida Larson, his wife, jointly had $10,000 invested. These investors likewise had a right to be consulted and to say what kind of an organization they desired to operate the property.
The witness Mosier testified:
“Q. Was anything said at that time .about the organization of a corporation? A. We talked there; and, as far as I know, as far as I can recall, Mr. Drury said he intended to form a corporation, or something; but he hadn’t done it at the time. He intended to form some kind of organization after they had got going and the people had put in the money, they would get together and see what they wanted. * * *
“Q. Did Mr. Drury mention any other kind of an organization, other than a corporation, at that time? A. Yes; syndicate, or a partnership, or something; they just mentioned it could be anything.”
The placer mining property here involved was located at an altitude of 7,200 feet and because of early freezes and the employees complaining of the cold in the fore part of September, defendant decided to call off further mining operations for that season and to move the dragline off the property. Thereupon plaintiff came to defendant and asked for a return of his money, and upon defendant’s refusal to comply with his demand he instituted this action.
Defendant testified that during the time he was struggling with the inefficient draglines and washing plant in his efforts to develop and prove the value of the property he had no money to pay for the organization of a corporation nor does it appear that the organization of a corporation would have either lessened defendant’s troubles or added to the profits of the venture.
Plaintiff stresses the fact that he was given no stock, or receipt or other writing to show his interest in the mining lease. As to this feature of the case the defendant Drury testified:
“Q. You never gave Mr. Marlin any receipt for a thousand dollars? A. I asked him at the time he gave me the check, I said, ‘I’ll give you a receipt if you want, or whatever you want to do.’ I explained to him that, when we got the thing in operation, we would call the thing together and we would have whatever kind of operation they wanted; and he said, ‘Let it go at that.’ ”
At the trial defendant also testified that the lease is still in full force and effect; that he recognizes plaintiff’s interest therein; that plaintiff had never asked for a statement in writing showing his interest and that should plaintiff so desire defendant stood ready and willing to give him a written declaration showing that plaintiff owns such 1% interest.
Defendant’s indefinite promise that “they were going to form a corporation as soon as possible,” without setting any time or date for so doing as was testified to by plaintiff, is wholly insufficient to establish that in making such alleged promise the defendant had no intention of forming a corporation. The undisputed evidence shows that défendant did experience much trouble with the machinery and equipment between July 18, 1949, and September 5, 1949, and that he lacked necessary funds to enable him to then form a corporation. Nor can it be said that by the latter date an unreasonable time had elapsed for the formation by-the investors of a corporation or other organization.
“The promise to incorporate * * is contractual in its nature and does not constitute fraud.” Dobson v. Whitker, 242 Mich. 308, 218 N. W. 770, 772. See also Hilliker v. Jewell Oil & Gas Co., 277 Mich. 96; 268 N. W. 825. “The mere making of a promise which the promisor fails to keep does not constitute actionable fraud.” International Harvester Co. v. Merry, 60 Mont. 498, 199 Pac. 704, 706.
In Cuckovich v. Buckovich, 82 Mont. 1, 264 Pac. 930, 933, this court in construing the statute, now R. C. M. 1947, section 13-308, subdivision 4, said: “If a promise be made in good faith there is no fraud, though the promisor subsequently changes his mind”. In the case at bar there is no evidence that defendant’s promise to organize a corporation, partnership or syndicate was not made in good faith or that he subsequently changed his mind. See Howe v. Messimer, 84 Mont. 304, 314, 275 Pac. 281.
‘ ‘ The expression of an intention to do a thing is not a promise to do it. An intention is but the purpose a man forms in his own mind; a promise is an express undertaking or agreement to carry the purpose into effect.” Stewart v. Reckless, 24 N. J. L. 427, quoted with approval in Russell v. Sunburst Refining Co., 83 Mont. 452, 475, 272 Pac. 998, 1008.
“A statement merely as to what the party making it intends to do is not a misrepresentation, since it is not an affirmation of the fact, but is only an assertion that a present mental condition or opinion exists in him.” Emerson-Brantingham Implement Co. v. Anderson, 58 Mont. 617, 627, 194 Pac. 160, 164. The foregoing are in harmony with the great weight of authority. See 3 Pomeroy’s Equity Jurisprudence (5th Ed.), sec. 877c, p. 434, and 23 Am. Jur., Fraud and Deceit, secs. 35-38, pp. 794-799.
There being a failure of proof to establish either the false representations or fraud charged in the complaint defendant’s motion for a directed verdict should have been granted. Accordingly the judgment is reversed and the cause remanded with directions to enter a judgment of dismissal.
Rehearing denied March 30, 1951.
MR. JUSTICES METCALF, BOTTOMLY, FREEBOURN, and ANGSTMAN concur.
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ME. JUSTICE METCALF:
On September 20,1948, Mr. and Mrs. John J. Seullin of Butte, Montana, were killed in an automobile accident at Beach, North Dakota. Mrs. Seullin predeceased her husband by ten minutes.
Mrs. Seullin was known as Genevieve Taylor prior to her marriage to Mr. Seullin. As Genevieve Taylor she owned 100 shares of 6 % preferred stock of the American Power & Light Company, represented by certificate No. 50866, and other property not involved in this action. After her marriage to John J. Seullin she executed on a separate instrument an assignment purporting to transfer the American Power & Light stock to her husband. But she continued to receive the income from the stock. After the death of the Seullins the unendorsed stock certificate made to Genevieve Taylor and the assignment were found in a safety deposit box in the First National Bank of Butte, Montana, along with other papers and securities belonging to each of them. The box was held jointly by them and both used it as a depository for their valuables. Two keys to the box were found; one was on a key ring identified as belonging to John J. Scullin; the other was on a separate key ring not proved to belong to either Mr. or Mrs. Scullin. However, it was stipulated that both had access to the safety deposit box.
This is an action by the administrator of the estate of John J. Scullin to recover from the administrator with the will annexed of the estate of Genevieve Taylor Scullin the stock certificate representing the shares in the American Power. & Light Com: pany. The administrator. of Mr. Scullin’s estate claims under the assignment above described. The administrator with the will annexed of Mrs. Scullin’s estate insists that there was never a valid delivery of the assignment or stock certificate and that therefore the American Power & Light stock is a part of the Genevieve Taylor Scullin estate.
The assignment was executed at the First National Bank of Butte on a standard printed form. It was dated March 5, 1948, signed at the bottom by Genevieve Taylor. Mr. John J. Mitchell, an employee of the bank, signed the instrument in the space provided under the words on the form ‘ ‘ Signed, Sealed and Delivered in the presence of.” Then followed “Signature guaranteed First National Bank, Butte, Montana” signed by I. W. Bolitho, cashier.
Mr. Mitchell was called as a witness for the defendants and testified that he had signed on the line following the words “Signed, Sealed and Delivered in the presence of” under the impression that he was witnessing Genevieve Taylor’s signature. Mr. Mitchell testified that he knew Genevieve Taylor and was familiar with her signature and that he knew who John J. Scullin was, knew him by sight and that' when he signed Mr: Scullin was not present nor had Genevieve Taylor signed the instrument in his presence. Mitchell was unshaken in his reiterated statement that when:he signed he thought he was witnessing Genevieve Taylor’s signature. He repeated on cross-examination that he didn’t see the. actual delivery of the assignment, that he didn’t remember Mr. Seullin being present and that the instrument was not sighed’in’his presence.
■ Transfer of stock certificates is controlled by R-. C. M. 1947, sections 15-628 to 15-651, the Montana enactment of the Uniform Stock Transfer Act, which has been adopted in the 48 states and in the District' of Columbia and in the territories of Alaska and Hawaii. 6 Uniform Laws Ann., 1950, Cumulative Pocket Part.
R. C. M. 1947, see. 15-628, provides the means by which title to certificates and'shares of stock may be transferred. “Title to a certificate and to the shares represented thereby can be transferred only, ■ i
“ (a) By delivery of the certificate indorsed either in blank or to a specified person by the person appearing by the certificate to be the owner of the shares represented thereby, or
“(b) By delivery of the certificate and a separate document containing a written assignment of the certificate or a power of attorney to sell, assign, or transfer the same or the shares represented thereby, signed by the person appearing by the certificate to be the owner of the shares represented thereby. Such assignment or power of attorney may be either in blank or to a specified person * *
In section 15-649, definitions of the words used in the balance of the Act appear. This section provides that: “ ‘Delivery’ means voluntary transfer of possession from one person to another.” “ ‘Transfer’ means transfer of legal title.” “ ‘Title’ means legal title and does not include a merely equitable or beneficial ownership or'interest. ”
The purpose of the Uniform Stock Transfer Act is to make the stock certificate to the fullest extent possible the representative of the shares. Commissioner’s Note, 6 Uniform hr vs Ann. 2; Mills v. Jacobs, 333 Pa. 231, 4 A. (2d) 152, 122 A. L. R. 383; Hodes v. Hodes, 176 Or. 102, 155 Pac. (2d) 564; Knight v. Shutz, 141 Ohio St. 267, 47 N. E. (2d) 886, 150 A. L. R. 138.
Most of the evidence in the instant case relates to the delivery of the separate assignment. The plaintiff relies on the declaration on the instrument that it was signed, sealed and delivered in the presence of John J. Mitchell. The defendant asserts that Mitchell’s evidence shows that he signed that statement under the mistaken belief that hé was witnessing Genevieve Taylor’s signature with which he was familiar.
Equally important is the question of delivery of the certificate itself. If a separate assignment is executed, the Uniform Stock Transfer Act requires not only that "the separate assignment be delivered to the transferee but that the stock certificate also be delivered. There is no evidence in the record whatsoever relative to the delivery of the certificate. It was found in the safety deposit box that was used by both Mr. and Mrs. Scullin along with other papers belonging to each of them. Irrespective of the fact that John J. Mitchell signed a statement that the assignment was signed, sealed and delivered in his presence, his testimony that he did not see Mr. Scullin on the day the assignment was executed, that he did not see Mrs. Scullin sign the assignment, and that he did not see the stock certificate, is unimpeached.
The presence of the certificate in the safety deposit box along with other papers belonging to the parties is as consistent with the ownership and possession of Mrs. Scullin as with that of her husband. Therefore, even though Mr. Mitchell’s testimony relative to the circumstances under which he signed the assignment be disregarded, there is still insufficient compliance with the statute because there is no showing that there was ever any delivery of the stock certificate itself.
In Johnson v. Johnson, 300 Mass. 24, 13 N. E. (2d) 788, an assignment was made and delivered blit because the stock certificate itself was never delivered, it was held that the transfer was ineffective. Figuers v. Sherrell, 181 Tenn. 87, 178 S. W. (2d) 629, 152 A. L. R. 420; Daws v. Drusilla Home, 118 Ind. App. 639, 79 N. E. (2d) 420; Cross v. Cross, 27 A. (2d) 877, 20 N. J. Misc. 359; In re Cunningham’s Estate, 19 Wash. (2d) 589, 143 Pac. (2d) 852; Parker v. Colonial Building-Loan Ass’n, 111 N. J. Eq. 49, 161 A. 353.
The same is true when a certificate is endorsed in blank and pev'er delivered; upon the death of the holder of the certificate his representative is entitled to the stock. Gray v. Doubikin, 188 Mo. App. 667, 176 S. W. 514; Biehl v. Biehl’s Adm’x, 263 Ky. 710, 93 S. W. (2d) 836; In re Brueck’s Estate, 122 N. J. Eq. 329, 194 A. 60.
In 99 A. L. R. 1077 and 152 A. L. R. 427, there are annotations on the necessity of delivery of stock certificate to complete valid gift of stock and the general rule is stated: ‘ ‘ The Uniform Stock Transfer Act, - as stated in the earlier annotation, requires as essential to the transfer of title to stock, the delivery of the certificate properly indorsed, or the delivery of the certificate and a separate written assignment or power of attorney.’-’ 152 A. L. R. 435.
In Re Brown’s Estate (State v. Pelletier), 122 Mont. 451, 206 Pac. (2d) 816, 820, a tax case, this court held that as between parties such- as parent and child or husband and wife, a strict enforcement of the rules requiring delivery is required, and that the ‘ ‘ donor must go as far as the nature of the property and the circumstances reasonably permit in parting with dominion and making the gift irrevocable.” Quoting from Weil v. Com’r of Internal Revenue, 5 Cir., 82 F. (2d) 561, 563. So that “Where actual manual delivery of the property is possible, delivery should be so made. ’ ’
The burden of establishing the fact of a gift is on the donee, and a gift will not be presumed. State v. Pelletier, supra, and cases therein cited. •
It is true that State v. Pelletier was a tax case, but as pointed out by Modesitt, Application of the Uniform Stock Transfer Act'to Gifts of Stock, 20 Rocky Mountain Law Review 67, in tax cases the issue'of ownership is decided as incidental to the deter mination of the incidence of the tax. Such cases do not bear the label “good in tax cases only.”
The requirement of delivery has been criticized as a ritualistic relic of medievalism that no longer serves a purpose in modern law. But even those who insist on a relaxation of the formalism required recognize that the fact of delivery must be proved by competent evidence. Richardson v. Commissioner of Internal Revenue, (2d) Cir., 126 F. (2d) 562, 140 A. L. R. 705,
An example of a case where sufficient delivery was shown by surrounding circumstances is United States v. Rosebush, D. C., 45 F. Supp. 664, where a husband transferred certain stock to his wife by endorsing it in blank. The certificate was found in her stock portfolio in their joint safety deposit box. Bach of the parties kept a record of their stock holdings and entries were made in their individual journals relating the transfer. There the surrounding circumstances proved the transfer.
But here there is a complete lack of evidence that the stock certificate was ever delivered with or without the separate assignment.
Mr. Modesitt in his article in 20 Rocky Mountain Law Review, supra, states the problem: “ * * * many alleged gifts of corporate stock have been held invalid by the courts because there was no delivery or no indorsement in compliance with the express provision of the Act. Often, this is the result of negligence, but more frequently is brought about by various altruistic plans of the donor or by ‘hedging’ on the unequivocal requisites of the Act. The donor thinks it is easy to give stock away and also retain dominion over it at the same time.
“Probably the most common reason for these gifts is to prevent the corporate shares from being tied up in prolonged probate procedure. Coupled with this, in many cases, is an attempt to avoid an estate tax.
“An attorney advises his client of the advantages of a direct transfer to the beneficiaries through the medium of a gift inter vivos and the client agrees; but still he hesitates to give up the stock irrevocably. He .therefore employs a variety of hedging arrangements. He may indorse the certificate in blank and place it- in a safety ^deposit box to which he and the donee have access, or he may have a new certificate issued in the donee’s name and keep it in his own desk. His intention, in either case, is to retain . dominion over the shares until his death or some indefinite future time. He is actually attempting to make a conditional gift inter vivos .but there is no such thing. ’ ’.
Whatever may have been the motives of the parties (and there is no tax question in the case) there remains the fact that they had put themselves in an equivocal position. The stock certificate was in the name of Mrs. Scullin, the assignment was made to Mr. Scullin, and the stock certificate was equally accessible to both. There is no explanation as to why the certificate was not delivered with the assignment or why it was not endorsed over to the transferee. There simply was a failure to prove an essential element that the plaintiff had the statutory burden of proving, namely, that the stock certificate was ever delivered to the transféree. There was not the irrevocable relinquishment of dominion and control necessary. State v. Pelletier, supra, and cases therein cited; In re Scherzinger’s Estate, 272 App. Div. 722, 74 N. Y. S. (2d) 756; Zoller v. State Board of Tax Appeals, 124 N. J. L. 376, 11 A. (2d) 833.
The judgment is reversed and the cause remanded with instructions to dismiss the action.
MR. CHIEF JUSTICE ADAIR and ASSOCIATE JUSTICES BOTTOMLY, FREEBOURN and ANGSTMAN, concur.
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MR. CHIEF JUSTICE ADAIR:
On written praecipe executed and filed by Arnold H. Olsen, Attorney General of the State of Montana and Ted James of Cascade County, Montana, counsel for appellants, and written consent executed and filed by Howard T. Manion, and E. J. McCabe, Jr., counsel for respondents;
It is ordered, that the appeal in the above numbered and en titled cause be and it is dismissed upon tbe merits and with prejudice.
|
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MEMO OPINION AND ORDER
PER CURIAM.
Joseph Hunsinger, an inmate in the Montana state prison, appearing pro se, has filed a petition with this Court entitled “Petition for a Writ of Habeas Corpus or Writ of Certiorari”.
Petitioner states that an information was filed and a warrant issued for his arrest in Broadwater County on February 25,. 1965. The information charged petitioner with attempted rape and set forth two prior convictions of the same nature. At the time of filing the information the petitioner was a patient in St. John’s hospital in Helena, Montana and he was not incarcerated in the county jail until March 13, 1965, although the warrant and information were served on him in the hospital. It appears from the petition that the initial arraignment was had in Lewis and Clark County. The district judge, believing petitioner to be indigent, appointed Patrick Hooks, Esq., an attorney of Townsend, Broadwater County, Montana, to represent him.
As such attorney, Mr. Hooks took the necessary preliminary steps to protect the petitioner by entering a plea of not guilty, moving for a change of place of trial from Broadwater county and requesting a psychiatric examination. The court granted a change in the place of trial to Wheatland county and ordered a pysehiatric examination. Following these proceedings the petitioner informed the court he had no further need for the services of Mr. Hooks and asked that the record show the law firm of Mahan & Mahan as his counsel. He alleges he paid the sum of $1400 to the firm of Mahan & Mahan.
It appears that when the district judge learned petitioner was in possession of sufficient funds to employ his own defense counsel he attempted to protect the taxpayers by imposing a lien on a parcel of property owned by petitioner to pay for the legal work done by Mr. Hooks whose claim came to $300.
Petitioner complains of the appointment of counsel for him by the court. In Montana an indigent accused is entitled as a matter of right to appointive counsel upon arraignment in the district court. The rights set forth in Gideon v. Wainwright, 372 U.S. 335, 83 S.Ct. 792, 9 L.Ed.2d 799, have been recognized in Montana since territorial days and provided for by statute, section 94-6512, R.C.M.1947.
However, when an accused has the financial ability to employ counsel to preserve his rights there is no reason for the state to provide such service to him. Here, during a period of a month to six weeks the indigence of the petitioner was in question; he was charged with a serious felony and with two prior convictions and the district court quite properly moved to protect his rights.
Basically petitioner seems to be making a two-pronged request: First, that the lien for attorney fees for $300 be set aside. The order purporting to establish such a lien was dated April 8, 1965 purportedly granting a lien to Broadwater county and directing that if it was not satisfied within one year the county could foreclose it. There is no legal authority for establishment of a lien in such a summary manner even if Broad-water county may very well have a legal action against the defendant in quantum meruit or on some other legal theory. Accordingly, this opinion and order directs and orders that the purported order for lien dated April 8, 1965 be set aside and held for naught.
Second, that his plea of guilty and resulting sentence of ten years was induced by coercion, fraud, or deceit or all of them. Petitioner recites his poor physical condition at the time, and complains of the advice of his retained counsel and his fear of the influence of the special prosecutor employed to assist the county attorney.
We have examined the entire record and find the complaints and charges of the petitioner to be wholly without merit.
The petition for writ of habeas corpus or for writ of review is denied and the proceeding is dismissed.
|
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MR. JUSTICE GULBRANDSON
delivered the Opinion of the Court.
Kenneth and Barbara Scott, appellants, appeal the denial of a motion to set aside a default judgment entered in the District Court of the Twentieth Judicial District,- Sanders County. We affirm.
William and Barbara Griffin, respondents, filed a complaint on November 28, 1984, claiming a prescriptive easement over an existing roadway across appellants’ adjoining property. The complaint and summons were personally served on appellants on December 5,1984, at their home in Wyoming. On about December 14, 1984 appellants mailed these and other documents to their counsel, Raymond Tipp, in Missoula, Montana. He left for a two-week vacation on December 20, 1984, unaware that the summons and complaint arrived at his office that day. Tipp returned to his office on January 4, 1985, but did not review the information appellants had sent because of the amount of mail and other work which had accumulated. He did not discover that a default judgment had been entered on January 11, 1985, until he saw a credit bureau report on February 12, 1985. At that time he reviewed the information from his clients and contacted respondents’ attorney to request a stipulation that the judgment be set aside. He then asked the District Court, on February 21, 1985, to set aside the judgment on the basis of mistake, inadvertence or excusable neglect pursuant to Rule 60(b), M.R.Civ.P.
Respondents opposed this motion citing appellants’ lack of diligence in addition to counsel’s failure to read his incoming mail. Appellants had not responded to a letter from respondents mailed August 2, 1984 which outlined the problems between the parties in detail and urged them to contact an attorney. They also declined to respond to a follow-up letter three weeks later advising them that respondents would proceed formally to determine the extent of their easement. Even after they received the complaint and summons, appellants apparently did nothing to monitor the status of the suit.
Respondents filed their motion for default judgment on January 8, 1985. The judgment, entered January 11, 1985, awarded respondents an easement over an existing roadway along the edge of appellants’ property and permanently enjoined appellants from obstructing the easement. The District Court held a hearing on appellants’ motion to set aside the default judgment on March 26, 1985 and denied the motion on April 12, 1985.
Appellants raise two issues on appeal:
(1) Whether the District Court erred by not setting aside the default judgment on the basis of mistake, inadvertence or excusable neglect.
(2) Whether the District Court had authority to enter a default judgment in a quiet title action without a prima facie showing of a right to easement by competent evidence.
The standard of review where a district court has denied a motion to set aside the default “is that no great abuse of discretion need be shown to warrant reversal.” Lords v. Newman (Mont. 1984), [212 Mont. 359,] 688 P.2d 290, 294, 41 St.Rep. 1793, 1797. Another statement of this standard “is that only ‘slight abuse’ is sufficient to reverse an order refusing to set aside a default.” (Citations omitted.) Lords, 688 P.2d at 293.
The test to determine whether the neglect is excusable and sufficient to set aside a default is:
“. . . whether the reasons given for the neglect are such that reasonable minds might differ in their conclusions concerning excusable neglect. If so, doubt should be resolved in favor of a trial on the merits.”
United States Rubber Co. v. Community Gas & Oil Co. (1961), 139 Mont. 36, 39, 359 P.2d 375, 376. In United States Rubber, the attorney’s neglect consisted of his failure to read his mail for two or three weeks “because of being busy, the holiday season, and the mistaken assumption that the letter concerned a different matter.” (Emphasis in original.) 139 Mont. at 39, 359 P.2d 375. We held that the attorney’s actions were inexcusable neglect and that the district court had not abused its discretion in denying a motion to set aside the default judgment. In the case at bar the attorney’s actions are surprisingly similar to those at issue in United States Rubber. The attorney here, in his affidavit, cited the accumulation of mail and work in his office and his absence over the Christmas holiday as the reason for failing to read his clients’ letter for about five weeks. During the hearing on the motion to set aside the default judgment, he stated that he had not given the documents prompt attention because, in his past dealings with appellants, problems generally went on for months and months. Although this is not an assumption that the documents concerned a different matter, the attorney did mistakenly assume the documents did not concern a matter requiring prompt attention. Another difference is that in United States Rubber the letter was from an opposing attorney. However, these factual differences are not sufficient to distinguish the two cases. We note also that there are several other attorneys in Tipp’s office, according to signatures in the District Court file, who could have reviewed the mail and discovered the complaint. As in United States Rubber, this attorney’s failure to read his mail for five weeks because of work which had accumulated in his absence over a holiday is not excusable neglect.
The neglect of an attorney generally may be attributed to the client except where the attorney’s action constitutes “actual misconduct,” Lords, 688 P.2d at 295, and the clients are “blameless.” Lords, 688 P.2d at 296. In Lords, the attorney made a general appearance in court on behalf of clients who had not been served with process and who had not authorized him to act. He then disappeared from sight. The clients attempted to contact him and proceeded “with diligence to rectify the court’s action.” Lords, 688 P.2d at 296. Here the attorney’s action does not approach the misconduct of the attorney in Lords. Further, knowing that an appearance was due the day after Christmas, appellants waited until at least December 14 to mail the papers to their attorney and apparently did nothing to check on the suit. Nothing in the record shows they let their attorney know the matter would require prompt attention. Under these circumstances, the district court did not abuse its discretion in refusing to set aside the default judgment.
In the second issue, appellants refer to plaintiffs’ action as a quiet title action under Section 70-28-101 et seq., MCA. They contend that Section 70-28-108, MCA, requiring plaintiffs “produce evidence sufficient to prima facie entitle [them] to relief” before they are entitled to a default decree was not satisfied. They claim the plaintiffs produced no evidence to show they were entitled to relief, thus the default judgment should be set aside. This action did not adjudicate ownership of real property, or even adjudicate the ownership of the easement. The judgment addresses only the use of the roadway between the individuals named as parties. As such it is not a quiet title action to which Section 70-28-108, MCA applies. We therefore hold the District Court had authority to enter the default judgment.
The order of the District Court is affirmed.
MR. JUSTICES HARRISON, WEBER, SHEEHY and HUNT concur.
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MR. CHIEF JUSTICE ADAIR:
Don Higby served three years in the military forces of the United States during World War II.
In May 1945, Higby, then aged 28, was honorably discharged from the Army and returned to Helena, Montana, where he obtained employment in the office of an insurance company.
At the times here involved the nation was confronted with an acute housing shortage. Houses for rent or sale were scarce and materials for construction purposes were unobtainable except by persons to whom the law granted a preference and priority over other users.
Higby and his wife Lorraine were of limited means. Their savings amounted to but $500, yet both were exceedingly desirous of acquiring a small home to be occupied by themselves and children and they set about planning for the financing and construction of such a dwelling.
As an honorably discharged veteran of World War II, Higby was entitled to the loan benefits, priorities and privileges of the Servicemen’s Readjustment Act of June 22, 1944, as amended, commonly known as the “GL I. Bill,” 38 U. S. C. A. sec. 693 et seq.
In December 1945, the veteran and his wife discussed their finances and plans with Fred D. Hooper, a general building contractor of more than twenty-four years experience in the contracting business. The two had been well and personally acquainted for fifteen years or more. Hooper’s son and the veteran had been boyhood friends and companions, having grown up, played, hunted and fished together, and the Higbys had implicit confidence in Hooper’s integrity and ability as a builder.
From a rough sketch made by the veteran and his wife, Mr. Hooper drafted and submitted to the Higbys blueprint plans and written specifications for the construction of the proposed dwelling. The Higbys approved the plans and specifications and in January 1946, entered into a verbal agreement with Mr. Hooper for the construction of the dwelling to be built in accordance therewith.
To finance the proposed construction the Higbys were to supplement the $500 which they then had in the bank with an additional sum of $2,000 which they had arranged to borrow from Mrs. Higby’s father and the balance was to be raised through a “G. I. loan” which would enable them to obtain the advantages of a long-time amortized loan at a low interest rate (4%) and also the preference, priorities on construction, materials and other privileges available to an honorably discharged veteran under the “G. I. Bill of Rights,” supra.
The veteran first applied to the Union Bank and Trust Company of Helena, for a G. I. loan but his application was turned down. Thereupon the veteran was directed by Mr. Hooper to apply to the Home Building and Loan Association of Helena of which Mr. Hooper is a stockholder’, and this the veteran did, such association being an authorized lending agency incorporated under the laws of the state of Montana and subject to examination and supervision by the state.
The proposed dwelling was to be constructed on lots numbered 11 and 12 in block 4 of the Lockey addition to the city of Helena, to which lots the Higbys had acquired title in fee simple.
The builder declined to commence construction until the money to be borrowed from Mrs. Higby’s father was made available.
April 8, 1946, the Higby’s received the $2,000 from the above source.
April 19, 1946, the plans and specifications and the lots on which the dwelling was to be constructed were inspected by an appraiser designated by the Veterans’ Administration and appraisal report (VA form 4-1803) filed with the Veterans’ Administration at Fort-Harrison, Montana, appraising the lots at $400 and the dwelling and improvements to be constructed thereon at $9,100. Paragraph 17 of the appraisal report reads: “17. Comments: See copy of specifications attached for detail of materials and general construction features. ’ ’
April 24, 1946, the builder commenced excavating on the lots for the foundation and basement being the first work done under the contract. The excavation was completed within a few days and immediately following the Home Building and Loan Association, with whom the application for a G. I. loan was then pending and undetermined, through its managing officer John W. Schroeder, advised both the borrowers Higby and the builder Hooper that it would be impossible to make the loan without a letter or statement in writing from Hooper embodying the oral agreement between the parties for the construction of the dwelling.
Mr. Higby testified that Mr. Schroeder informed him that he “should have a reiteration of that contract, of that oral agreement.”
On May 13, 1946, in compliance with the request of both the lender and the borrowers for a writing setting forth the contract, Mr. Hooper, the builder, signed and delivered to the Home Building and Loan Company a letter prepared for him by Attorney David R. Smith, reading:
“Paul W. Smith David R. Smith J. Miller Smith Attorneys At Law Suite 5
Penwell Block
Helena, Montana May 13,1946
“Mr. Donald Higbe Helena, Montana “Dear Mr. Higbe:
“Whereas I am about to build a house for you on lots owned by you in the City of Helena, Montana, in accordance with the plans and specifications submitted to me therefor, and agreed upon, I am hereby certifying in writing that the complete cost of the same in accordance with said plans and specifications will not exceed the sum of $8,300.00.
“Very respectfully yours,
/s/ Fred D. Hooper
“DES :aw”
Neither of the Higbys was present when the above letter was written or signed nor was either present when it was delivered to the building and loan association.
May 18, 1946, the Higbys paid the builder Hooper $1,000 on the contract out of the money they had received from Mrs. Higby’s father and on July 6, 1946, they paid the builder the further sum of $1,000, thereby exhausting the money that had been borrowed from the wife’s father.
The Home Building and Loan Association made an amortized twenty-year, 4% loan in the principal sum of $5,800 to the Higbys secured by a real estate mortgage on the aforementioned city lots and improvements including the dwelling to be constructed thereon and reported such loan to the Veterans’ Administration at Fort Harrison, Montana, with application for a government guaranty thereon, the report being accompanied by (1) the original of Don Higby’s honorable discharge from military service; (2) the original letter of May 13, 1946, from Fred D. Hooper, the building contractor, to Higby and (3) the appraisal report (VA Form 4 — 1803) dated April 19, 1946, made by the designated appraiser.
July 11, 1946, the mortgage to the Home Building and Loan Company was recorded in the office of the county clerk and recorder of Lewis and Clark county, Montana, and in August 1946, the Higbys commenced making the monthly installment payments called for by such mortgage.
The construction work moved very slowly. As the work progressed the Home Building and Loan Company disbursed and paid direct to the builder Hooper out of the loan and on the contract, various sums amounting in the aggregate to $5,000.00. In addition the Higbys with the consent and approval of the builder had expended further sums totaling $221.18 for scarce materials requiring priorities which they purchased and for which they were entitled to credit by the builder.
Winter came with the dwelling still unfinished. The Higbys were threatened with eidction from the house in which they were living and they found it increasingly difficult to make the monthly installment payments on their loan and also to pay rent, so on January 3, 1947, they moved into the unfinished home.
Five days later Mr. Hooper informed the Higbys that the construction costs of the dwelling “had run over about $2000” and asked them to make application to the Home Building and Loan Company to increase their loan by such amount. This the Higbys declined to do, advising the builder that they were standing on their contract which they had entered into in good faith.
Mr. Hooper, the general building contractor, failed to pay three subcontractors employed by him who had furnished work and materials on the house and on or about February 27, 1947, mechanic’s liens were filed against the property as follows: Carl W. Carlson for plumbing materials and labor furnished between June 20, 1946, and February 21, 1947, $1,312.72; Carl Peterson for cement and cement finishing labor furnished between December 6 and 9, 1946, $236.90; S. A. Douglas for plastering material and work furnished between November 14, 1946, and February 22, 1947, $361.60, such three liens totaling $1,911.22.
Also on February 27,1947, the builder Fred D. Hooper filed a mechanic’s lien sworn to before David R. Smith, as notary, claiming an unpaid balance owing Hooper for materials and labor furnished by him on the house between April 24, 1946, and February 6, 1947, in the further sum of $1,489.44.
The total claimed in the four mechanic’s liens is $3,400.66. Exclusive of interest, costs and attorney’s fees, such amount, added to the $7,221.18 already.paid to Hooper would run the cost of the unpainted and unfinished dwelling to $10,621.84, being $2,321.84 in excess of tbe maximum cost certified by Hooper in bis letter to Higby of May 13,1946.
Tbe mechanic’s liens became and were superior to tbe prior mortgage given tbe Home Building and Loan Association. R. C. M. 1947, section 45-506, provides: ‘ ‘ Tbe liens attach to tbe buildings, structures, or improvements for which they were furnished or tbe work was done in preference to any prior lien, encumbrance, or mortgage upon tbe land upon which said buildings, structures, or improvements are erected; and any person enforcing such lien may sell tbe same under execution, and tbe purchaser may remove tbe property sold within a reasonable time thereafter. ’ ’
In order to protect their property against tbe mechanic’s liens filed by tbe subcontractors Carlson, Peterson and Douglas, tbe Higbys were compelled to borrow from a friend, Dr. Gordon L. Doering, tbe further sum of $1,911.22, with which they paid tbe amounts then due on tbe respective claims and liens of the named subcontractors.
Tbe written specifications prepared by tbe builder and agreed upon by tbe parties provide for tbe painting of tbe dwelling both inside and outside, reading:
“Painting
Exterior, 3 coats
Interior trim and cabinets, 3 coats gloss finish Wall, 1 coat, casein or cold water paint, except Bath and Kitchen, 3 coats gloss finish. ’ ’
Mr. Hooper wholly failed to comply with any of tbe quoted specifications governing tbe painting of tbe dwelling, tbe only painting which tbe bouse received being such as was done .by tbe Higbys in tbe spring of 1948. Plaintiffs allege tbe cost of painting tbe bouse to be $607.40. Mr. Hooper’s estimate on tbe painting job at tbe beginning was $700.00.
After they bad paid tbe claims and liens of tbe subcontractors Carlson, Peterson and Douglas, tbe Higbys, as plaintiffs commenced tbe instant action against tbe defendant Fred D. Hooper.
The complaint sets forth two canses of action. A copy of the plans and specifications marked Exhibit A and a copy of the letter of May 13, 1946, marked Exhibit B, are attached to and made a part of the complaint. In their suit plaintiffs seek to expunge from the county records, as illegal and invalid, the mechanic’s lien filed against their property by the defendant Hooper and recover damages for defendant’s failure to complete and finish the dwelling according to contract and in a workmanlike manner.
In his answer the defendant Hooper: Admits that he offered to build a house for plaintiffs pursuant to the plans and specifications so prepared by him and submitted to plaintiffs; admits that plaintiffs approved such plans and specifications and that defendant thereafter entered upon plaintiffs’ lots and commenced the construction of the house according to such plans and specifications and that there was paid to defendant “and credited the sum of $7,221.18 upon the construction of said house;” admits that defendant furnished to plaintiffs the letter of May 13, 1946, and that Exhibit B of the complaint is a copy thereof; ‘ ‘ admits that he did not do any painting upon said house; and admits that the painting of said house will cost at least the sum of $607.40;” admits that plaintiffs furnished to the defendant certain light fixtures in the sum of $33.00 and linoleum in the sum of $33.78 for which defendant was to give plaintiffs credit and that plaintiffs have been forced to pay the sum of $20.37 for heating said house while it was under construction “and alleges that plaintiffs were given full credit for said items and all thereof; and that same have been credited and deducted from the balance claimed by defendant to be owing to him for the construction of said house. ’ ’
Hooper’s answer also: Denies that he contracted to build the house for the sum of $8,300 or for any other specified amount; “denies that there was ever any specified, limited or contract price for the construction of said house; and denies that the painting of said house, or any other part of the construction thereof, was required to be done for any specified price; but alleges that it was understood and agreed that said house should be constructed, by defendant for plaintiffs, on a basis of cost of materials and labor, plus 10% to defendant for his services as a contractor;” denies that his letter of May 13, 1946, “was given, understood or intended, either by defendants or plaintiffs as any kind of a contract * * * or for the purpose of reaffirming any previous oral agreement whatsoever; ’ ’ and alleges that he furnished the letter to plaintiffs at their request “merely as an accommodation to plaintiffs” to be used “to facilitate a loan which they were then seeking * * * and * * * that the sum $8,300 therein mentioned, was merely an estimate as to what would be the cost of the construction of said house * * * and it was then and there specifically understood and agreed between plaintiffs and defendant that said writing * # * should not be considered as any binding agreement upon defendant for the construction of said house. ’ ’
The answer further avers that the total cost of the house was $8,711.26, plus $1,911.22, the amount of the liens of the subcontractors, and that the sum of $1,489.44 is due the defendant Hooper as set forth in the lien which he filed; that further liens against the premises in the sum of $1,911.22 are owned and held by Dr. Gordon L. Doering and that plaintiffs had accepted the house as turned over to them by defendant without objections.
Answering plaintiffs’ second cause of action seeking damages for breach of the contract, defendant in general denied the allegations thereof.
In a cross-complaint incorporated in his answer the defendant Hooper named as cross-defendants the plaintiffs, the Home Building and Loan Association and Dr. Gordon L. Doering and therein sought foreclosure of his lien against plaintiffs ’ property in the sum of $1,489.44 and for attorney’s fees and costs.
Plaintiffs filed a reply placing in issue the new matter and affirmative allegations of defendant’s answer and cross-complaint and the Home Building and Loan Association filed an answer alleging its mortgage to be a lien prior and superior to the mechanic’s lien of the defendant Hooper.
The action, treated by all the parties as a suit in equity, was tried to the court sitting without a jury. Findings of fact, conclusions of law and decree were made and entered against plaintiffs and in favor of the defendant and cross-complainant Hooper for $1,489.44 and attorney’s fees and costs.
From the decree so entered against them, plaintiffs have appealed.
Plaintiffs assign as error the making of certain of the trial court’s findings of fact; the admission of parol evidence to vary the terms of a contract in writing and the adjudications and awards made in the decree.
R. C. M. 1947, section 93-216, provides: “® * * In equity eases, 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, whether the same be presented by specifications of particulars in which the evidence is alleged to be insufficient or not, and determine the same, as well as questions of law, unless, for good cause, a new trial or the taking of further evidence in the court below be ordered * * See Hart v. Barron, 122 Mont. 350, 204 Pac. (2d) 797, 802; Miller v. Miller, 121 Mont. 55, 190 Pac. (2d) 72; State ex rel. Nagle v. Naughton et al., 103 Mont. 306, 310, 311, 63 Pac. (2d) 123, and cases therein cited.
Pursuant to the mandate of the foregoing statute and that of our Bill of Rights, sec. 6, Art III, Const., we shall proceed to review and determine the questions of law and fact presented in the record before us.
The Servicemen’s Readjustment Act, under which the veteran sought a “G-. I. loan” to enable him to acquire a home, provides in part:
£(a) Any person who shall have served in the active military or naval service of the United States at any time on or after September 16, 1940, and prior to the termination of the present war and who shall have been discharged or released therefrom under conditions other than dishonorable after active service of ninety days or more * * * shall be eligible for the benefits of this subchapter. Any loan made by such veteran within ten years after the termination of the war for any of the purposes, and in compliance with the provisions, specified in this subchapter, is automatically guaranteed by the Government by this title in an amount not exceeding fifty per centum of the loan: Provided, That the aggregate amount guaranteed shall not exceed * * * $4,000 in the case of real estate loans; * * *
“ (b) Loans guaranteed under this subchapter shall be payable under such terms and conditions as may be agreed upon by the parties thereto, subject to the conditions and limitations of this subchapter and the regulations issued pursuant to section 694d of this title: Provided, That the liability under the guaranty within the limitations of this sub chapter shall decrease or increase pro rata with any decrease or increase of the amount of the unpaid portion of the obligation: Provided further, That loans guaranteed under this subchapter shall bear interest at a rate not exceeding 4 per centum per annum and shall be payable in full in not more than twenty-five years * *• * And provided further, That * * * (2) any loan for a term in excess of five years shall be amortized in accordance with established procedure; (3) except as provided in section 694e of this title any real-estate loan, other than for repairs, alterations or improvements, shall be secured by a first lien on the realty * * *
“(c) An honorable discharge shall be deemed a certificate of eligibility to apply for a guaranteed loan # * # Upon making a loan as provided in this subchapter, the lender shall forthwith transmit to the Administrator a statement setting forth the full name and serial number of the veteran, amount and terms of the loan, and the legal description of the property, together with the appraisal report made by the designated appraiser. Where the loan is automatically guaranteed, the Administrator shall provide the lender with a loan guaranty cer tificate or other evidence of the guaranty. He shall also endorse on the veteran’s discharge, or eligibility certificate, the amount and type of guaranty used, and the amount, if any, remaining. An amount equivalent to 4 per centum on the amount originally guaranteed shall be paid to the lender by the Administrator out of available appropriations, to be credited upon the loan. Nothing in this subchapter shall be deemed to preclude the assignment of any guaranteed loan nor the assignment of the security therefor.
“ (d) Loans guaranteed under this subchapter may be made by any Federal land bank, national bank, State bank, private bank, building and loan association, insurance company, credit union, or mortgage and loan company, that is subject to examination and supervision by an agency of the United States or of any State or Territory, including the District of Columbia. ***” 38 U. S. C. A. sec. 694.
“Any loan made to a veteran under this subchapter, the proceeds of which are to be used for * * * constructing a dwelling to be occupied as his home * * * is automatically guaranteed if made pursuant to the provisions of this sub-chapter, including the following:
“ (1) That the proceeds of such loan will be used for payment of the property * * * constructed * =": *
“(2) That the contemplated terms of payment required in any mortgage to be given in part payment of the purchase price or the construction cost bear a proper relation to the veteran’s present and anticipated income ¿nd expenses; and that the nature and condition of the property is such as to be suit! able for dwelling purposes; and
“(3) That the price paid or to be paid by the veteran * * * for the cost of construction * * * does not exceed the reasonable value thereof as determined by proper appraisal made by an appraiser designated by the Administrator.” 38 U. S. C. A. sec. 694a, emphasis supplied.
“In order to enable persons who have served ninety days or more in the land dr naval forces during the present war, and who have satisfactorily completed their period of active military or naval service, to obtain materials required for the construction * * * of dwelling houses to be occupied by them, any department or agency of the Government, in allocating or granting priorities with respect to any materials, shall give to such persons a preference over all other users of such materials (except to the extent such materials are needed by such other users to meet actual military needs), without requiring any showing of hardship or other necessity for the construction * * * of such dwelling houses. ” 38 U. S. C. A. sec. 694f.
“The Administrator is authorized to promulgate such rules and regulations not inconsistent with this sub chapter, as are necessary and appropriate for carrying out the provisions of this subehapter, and may delegate to subordinate employees authority to issue certificates, or other evidence, of guaranty of loans guaranteed under the provisions of this subehapter, and to exercise other administrative functions under this sub-chapter.” 38 U. S. C. A. see. 694d.
Among the rules and regulations promulgated by the Administrator under the authority of the foregoing statute is the following:
“Sec. 36.4305 Deviations; Changes of Identity, (a) A deviation of more than 5 % between the estimates upon which a certificate of approval has been issued and the report of final payment of the proceeds of the loan or a change in the identity of the property upon which the original appraisal was based will invalidate the certificate of approval unless such deviation ‘or change be approved by the administrator; * * Veterans Administration, Lenders Handbook, 4 — 3.
In Diamond v. Willett, La. App. 1948, 37 So. (2d) 338, 341, the court, in considering the Servicemen’s Beadjustment Act, supra, said: ‘1 The acts of Congress herein referred to are designed to give relief to members of the armed forces, of limited means, who honorably served their country during World War II. It was realized by Congress that no greater duty rested upon it than to aid and encourage, in substantial ways, the establishment of homes by those who had loyally served the Government in its hour of peril. One of the several modes adopted to attain this desired end is reflected from the passage of laws that unequivocably insure against financial loss those persons who invest in notes of ex-service men, secured by mortgages on homes acquired by them. Before said insurance can become effective in any given case, inquiry is made concerning the ability of the ex-service man to repay the mortgage debt, and care is exercised to protect him against the assumption of obligations he might default upon eventually. For this reason, it is imperative that the correct sale price of a home be declared in the application for assistance. The wisdom of this policy is fully demonstrated in the present ease.”
Of course “the price paid or to be paid by the veteran * * * for the cost of construction” is a vital factor to be considered and determined by the lending agency and also by the Veterans’ Administration in the approval of any “G. I. loan” for one of the conditions imposed by the law is that such price does not exceed the reasonable value of the construction as determined by proper appraisal made by an appraiser designated by the Administrator. 38 U. S. C. A. sec. 694a, supra.
As before stated the reasonable value of the construction to be done in accordance with the written plans and specifications was appraised at $9,100 by the designated appraiser and should the price to be paid by the veteran exceed the sum determined by such appraiser, then, under the law, the loan would not be subject to automatic guarantee.
What then was “the price * * * to be paid by the veteran * * * for the cost of construction” in the instant case?
At the outset the agreement both upon the plans and specifications submitted by the builder and upon the price to be paid by the veteran for the cost of construction was verbal, there being no mention of price or cost in the written plans and specifications other than the specifications for the doors, which provide: “Front to be selected, cost not to exceed $25.00” imply ing that the builder was limiting the plaintiffs’ selection to a front door costing not to exceed the maximum figure, of twenty-five dollars.
The verbal agreement, subject to uncertainties, disputes, misunderstandings, difficulty of proof and other infirmities thereto attendant, sufficed so long as the builder and borrowers were operating on money borrowed from Mrs. Higby’s father, but when such funds became exhausted and application for a “ G. I. loan” was made to an incorporated, authorized lending agency subject to examination and supervision by the state and to the Veterans’ Administration of the United States of America, the borrowers as well as the builder were at once confronted with exacting laws, rules, regulations and by-laws requiring certain and definite data and information concerning the commitments and agreement of the contracting parties and that is why the Home Building and Loan Association demanded and required, as a condition precedent to the making of a “G. I. loan” that the builder Hooper certify in writing his exact agreement with the veteran covering the kind and manner of construction and the price to be paid by the veteran therefor.
In compliance with such demand and requirement the builder Hooper subscribed his name to the writing addressed to the veteran, inter alia, stating: “I am hereby certifying in writing that the complete cost of the same in accordance with said plans and specifications will not exceed the sum of $8,300.00.”
By so “certifying” the builder made certain and attested to the fact that he had contracted with the veteran to build and complete a house for him in accordance with the agreed plans and specifications for a price to the veteran which “will not exceed the sum of $8,300.00.” Cf. Berry v. Richfield Oil Corp., 189 Or. 568, 1950, 220 Pac. (2d) 106, 113.
According to Black’s Law Dictionary, p. 301, the word “certify” means: “To testify in writing; to make known or establish as a fact. Smith v. Smith, Ind. App., 110 N. E. 1013, 1014. Tó vouch for a thing in writing. State v. Abernathy, 190 N. C. 768, 130 S. E. 619, 620; State ex inf. Carnahan ex rel. Webb v. Jones, 266 Mo. 191, 181 S. W. 50, 52. To give a certificate, or to make a declaration about a writing. Ainsa v. Mercantile Trust Co. of San Francisco, 174 Cal. 504, 163 Pac. 898, 901.”
Webster’s New International Dictionary, 2d Ed., defines the word “certify” as: “1. To give certain information of; to make certain, as a fact; to attest authoritatively; to verify. 2. To testify to in writing; to make a declaration concerning, in writing, under hand, or hand and seal. 3. To give certain information to; assure; make certain.”
The builder delivered the writing to the lender to induce and enable the lender to make a “G-. I. loan” of $5,800 to the veteran. The lender, in turn, delivered such writing to the Veterans’ Administration to induce it to issue to the lender the government’s guaranty against loss on the loan.
The veteran, the builder, the lender, as well as the government that was to act as insurer or guarantor of the loan, were and are entitled to stand on the contract as written. Compare Ettman v. Federal Life Ins. Co., D. C., 48 F. Supp. 578, 580. Being in writing, the contract supersedes all oral agreements and stipulations of the parties. Helena Light & Ry. Co. v. Northern Pac. Ry Co., 57 Mont. 93, 102, 186 Pac. 702; Berry v. Richfield Oil Corp., supra.
The only evidence introduced at the trial on behalf of the defendant Hooper was the testimony of himself and the witnesses John W. Schroeder and Alger Johnson, the latter being a former employee of the Home Building and Loan Association. Johnson’s testimony was confined exclusively to the condition of the dwelling in the year 1947 shortly after the Higby’s moved therein. Johnson’s testimony was that he inspected the house and found some heat grills missing, some split window casings and the plastering rough and neither straight nor true.
Over plaintiffs’ objections the witness John W. Schroeder and the defendant Hooper were allowed to testify as to their understanding and construction of defendant’s letter to Higby of May 13, 1946.
The witness Schroeder, on direct examination by defendant’s counsel, testified that the writing was “for loan purposes and it was to be made with the understanding that that was all it was for.” On further interrogation, he testified:
“Q. And will you state whether or not at the time he [Hooper] executed that, it was given as a contract to build for the price specified therein? A. That was not my understanding of it.
“Q. Will you state whether or not Mr. Hooper said anything as to whether that was his understanding? * * * A. You mean as to whether or not this was a contract.
“Q. Yes. A. It is my understanding that it wasn’t; I have the impression that it wasn’t. * * *
“Q. Now, from your participation and from your knowledge of the situation in that capacity, and in granting this loan, did you consider at that time that this was an absolute contract to build for the price stated there? * * * A. The answer to your original question would be ‘no’.”
On direct examination by his counsel the defendant Hooper testified as follows concerning the letter:
“Q. Well now, this says that you undertook to build the house for $8300.00. What have you to say as to whether or not at that time that was understood between you and Higby to constitute a contract to build for that sum? A. This did not constitute a contract. When John [Schroeder] presented me this for my signature, I objected and told John [Schroeder] this was only an estimate and that the painting was to be done by Higby; that was our arrangement, his agreement. I said it shouldn’t be on this for the reason that if the painting would have to be done by me, it would be $700.00 more, in addition to this estimate, and I was informed that that had nothing to do with this, didn’t pertain to any agreement between Higby and I, it was for loan purposes only.
“Q. Well now, previous to that time, as I understand, you and Mr. and Mrs. Higby had arrived at an oral understanding and agreement for the building of this house. Is that correct ? I mean previous to the time that you signed this letter. A. Yes, we had made our arrangements as to the way this was going to be built * * *.
“Q. Was there ever at any time any change in your original agreement that you have mentioned, that this job was to be done upon a cost-plus basis? A. That was the only agreement we had, that it was to be done on a cost-plus basis.
“Q. That was never changed. A. That was never changed. “Q. And it wasn’t intended by this writing to change it. A. Not at all, no. * # *
“Q. I think I am just about through. Oh, I don’t know whether we mentioned it with you, we did with Mr. Schroeder. Anyhow, I will ask you again with regard to the painting. It was contended, you recall, by the testimony of Mr. and Mrs. Higby that you were talking about $500.00 for a painting job and that that would come off the $8300.00. A. That is their version of it.
“Q. What is your version of it? A. That the painting job is plus that $8300.00.
“Q. Were you talking about $500.00 or some other figure in that connection? A. No, I wasn’t; our estimate on the painting job at the beginning was $700.00.”
The above-quoted testimony was clearly inadmissible. It has no legal effect and it cannot be considered by the court, trial or appellate. Bauer v. Monroe, 117 Mont. 306, at pages 313, 314, 158 Pac. (2d) 485. ‘ See also Berry v. Richfield Oil Corp., supra.
R. C. M. 1947, sec. 33-907, provides: “A contract in writing may be altered by a contract in writing, or by an executed oral agreement, and not otherwise.” This statute sets forth a rule of substantive law and not a rule of evidence. Bauer v. Monroe, supra.
Except for an exception not here applicable, the rule is as set forth in Restatement of the Law of Contracts, see. 447, subsection (1), pp. 834, 835, namely that “a contractual duty or a duty to make compensation is merged in the duty created by the formation of an informal written contract between the same parties providing for the same performance, if the written contract becomes by virtue of the parol evidence rule the only source for determining the parties’ rights and duties *
“Illustration of Subsection (1): 1. A and B enter into an oral contract by which A promises to paint B’s house, and B promises to pay $800 therefor. Later the parties integrate the contract in an informal writing. A fails to paint the house as promised. B has no right of action on the oral contract, but only on the writing which the parol evidence rule makes .the sole embodiment of it.” See also: Restatement of the Law of Contracts, sec. 237; Berry v. Richfield Oil Corp., supra.
Under certain circumstances, none of which is here present, a person may show that the document in question was intended to serve the purpose of a mere jest, joke or sham. “But a just policy would seem to concede this only when the pretense is a morally justifiable one (as, to calm a lunatic or to console a dying person). When it is morally beyond sanction, or aims at an evasion of the law or a deception of other persons, by intention of the parties, that intention will not be given effect.” 9 Wigmore on Evidence, 3d Ed., sec. 2406, subd. (1), pp. 16, 17.
The law does not allow parties to a contract to show that it was got up as a sham to deceive and defraud. Graham v. Savage, 110 Minn. 510, 126 N. W. 394, 396, 136 Am. St. Rep. 527, 19 Ann. Cas. 1022. So here the defendant will not be permitted to defeat his own solemn written contract by saying that it was given solely for a fraudulent and deceitful use. “He is estopped thus brazenly to assert his own covinous purpose.” Hunter v. Byron, 92 Wash. 469, 159 Pac. 703, 704. See R. C. M. 1947, sec. 13-801. Cf. Federal Farm Mortgage Corp. v. Hatten, 210 La. 249, 26 So. (2d) 735; Ewing v. Ford, 31 Wash. (2d) 126, 195 Pac. (2d) 650; Fereria v. Nunn, Cal. App. 1950, 220 Pac. (2d) 20; Young v. Neill, Or. 1950, 220 Pac. (2d) 89, 94.
The doctrine of estoppel “precludes one who has made positive statements of fact to another, in reliance upon which the latter has acted, from denying their truth in any controversy between these two parties. * * # An estoppel, like a conclusive presumption, is a rule of substantive law masquerading as a rule of evidence.” 5 Williston on Contracts, see. 1508, pp. 4205, 4206.
To make the writing to which the builder affixed his signature on May 13, 1946, a binding contract under the facts and circumstances here shown, it was not necessary that the veteran also sign the document. Girard Life Ins., Annuity & T. Co. v. Cooper, 162 U. S. 529, 16 S. Ct. 879, 40 L. Ed. 1062; Hunter v. Byron, supra; 9 Am. Jur., Building and Construction Contracts, sec. 3, pp. 6, 7, n. 17.
According to the weight of authority, the mere occupancy and use by plaintiffs of their unfinished dwelling do not constitute an acceptance of the work as complying with the contract, or amount to a waiver of defects therein. 9 Am. Jur., Building and Construction Contracts, see. 53, p. 40, n. 7. “An owner has a right to occupy his house at any time he chooses, and it takes more than mere occupation to constitute an acceptance of work not done by the contract or in accordance with the contract.” Walter v. Huggins, 164 Mo. App. 69, 148 S. W. 148, 152. Compare Stillwell & Bierce Mfg. Co. v. Phelps, 130 U. S. 520, 9 S. Ct. 601, 32 L. Ed. 1035; Barton v. Morin, 281 Mass. 98, 183 N. E. 170.
Where as here the contract states no specific price but does set a definite sum as the maximum cost, the building contractor is not entitled to recover from the veteran an amount in excess of such maximum. 17 C. J. S., Contracts, sec. 367, pp. 826, 827, notes 77 and 96. See also, p. 825, notes 70, 71 and 74.
In Kennedy v. McKone, 10 App. Div. 88, 41 N. Y. S. 782, a building contractor entered into a contract for the making of certain alterations and improvements upon defendant’s house. The contract was indefinite as to price other than to provide that it should not exceed $1,500, and the court permitted the recovery of the reasonable value of the work done and materials furnished, but restricted such recovery within the limit of the maximum su,m ($1,500) so named.
Plaintiffs’ witness S. L. Berg, an architect and chief underwriter for the Federal Housing Administration, Helena, testified that he inspected the dwelling in April 1948, and detailed the numerous patent defects found by him evidencing inferior workmanship and the parties stipulated that the cost of correcting such defects would be about $150.00.
After a careful examination of all the testimony, exhibits and authorities we are of the opinion that the evidence strongly preponderates against the trial court’s findings, conclusions and judgment. The rule that the trial court may not disregard uncontroverted credible evidence is fundamental. State ex rel. Nagle v. Naughton, supra, 103 Mont, page 310, 63 Pac. (2d) 123; Haddox v. Northern Pac. Ry. Co., 43 Mont. 8, 113 Pac. 1119.
The law and the evidence considered, plaintiffs are entitled to have rendered a judgment decreeing that the defendant and cross-complainant Fred D. Hooper take nothing by his answer or cross-complaint; adjudging null and void defendant’s claimed lien against plaintiffs’ property filed on or about February 27, 1947, being document No. 20661, and directing that it be cancelled and expunged from the records of Lewis and Clark county, Montana, and that plaintiffs have judgment against the defendant Fred D. Hooper for the sum of $1,348.37 with interest at the legal rate from May 9, 1949, and for plaintiffs ’ costs and disbursements.
The trial court’s findings and conclusions are set aside; its judgment is reversed and the cause is remanded to the district court with directions to render judgment in accordance herewith. Remittitur to issue forthwith.
MR. JUSTICE FREEBOURN and THE HON. F. Y. WATTS, District Judge, sitting in place of MR. JUSTICE METCALF, disqualified, and THE HON. DAVID N. NYQUIST, District Judge, sitting in place of MR. JUSTICE BOTTOMLY, disqualified, concur.
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MR. JUSTICE SHEA
delivered the opinion of the Court.
Peter J. Lorello, defendant, appeals from a declaratory judgment of the Deer Lodge County District Court holding that a proposed gambling ordinance was unconstitutional. We affirm.
The basic facts in this case are not in dispute. On May 2, 1977, the Anaconda-Deer Lodge local government charter became effective. The charter provided that the unified county government would be run by a five man board of commissioners and a professional city-county manager.
On July 13, 1977, Peter J. Lorello and approximately fifteen percent of the qualified electors of Deer Lodge submitted a proposed gambling ordinance to the Anaconda-Deer Lodge Board of Commissioners. Lorello’s group requested that the Board present the proposed gambling ordinance to the voters of Deer Lodge County at the next general election. The ordinance in question, if approved by the voters, would legalize all forms of gambling within the borders of Deer Lodge County.
The Board of Commissioners, not certain that the proposed ordinance would be valid as submitted, initiated a declaratory judgment action in the District Court, Deer Lodge County, seeking a declaration on the validity and constitutionality of the proposed ordinance. The trial judge ruled that the proposed ordinance was invalid, unconstitutional, and that the proposed ordinance could not be submitted to the Deer Lodge County electorate. This appeal followed.
The sole issue on appeal is whether the electorate of a local government unit may initiate a gambling ordinance which is more liberal than statewide gambling laws.
The main controversy is the meaning to be attached to the term “the people” as it appears in 1972 Mont.Const. Art. Ill, § 9. The section states:
“All forms of gambling, lotteries, and gift enterprises are prohibited unless authorized by acts of the legislature or by the people through initiative or referendum.” (Emphasis added.)
The District Court held that the term is synonymous with the voters of the entire State of Montana. Defendant Lorello, on the other hand, urges that the term “the people” is general enough to refer to the electors of a local government unit (i.e. the electors of Deer Lodge County).
The meaning attached to the term “the people” will be dispositive of the appeal. If the term refers to the electorate of the entire State, the citizens of Deer Lodge County cannot legalize forms of gambling which have not been “authorized” by the legislature or the electorate of the State. Conversely, if the term refers to the voters of a local government unit, the voters of Deer Lodge County must be allowed to vote on the proposed gambling ordinance.
The interpretation urged by defendant Lorello would lead to absurd results, and this cannot be a rational interpretation of the Constitution. Ronish v. School Dist. No. 1 (1960), 136 Mont. 453, 348 P.2d 797.
The framers used the term “the people” as a shorthand reference to the citizens of the entire State of Montana. We find support for such an interpretation by reference to other portions of our constitution. For example, the following language appears in the Preamble to our Constitution:
We the people of Montana grateful to God for the quiet beauty of our state, the grandeur of our mountains, the vastness of our rolling plains, and desiring to improve the quality of life, equality of opportunity and to secure the blessings of liberty for this and future generations do ordain and establish this constitution.” (Emphasis added.)
In addition to its use in the Preamble, the term “the people” appears thirteen times in the first three articles of our Constitution. Wherever the term appears, it is obvious that the framers were referring to the citizens of Montana as a homogeneous group, and not to an isolated group such as the electors of a local government unit. We would no doubt create absurdities in other portions of the Constitution if we accepted defendant’s strained interpretation. It simply was not intended.
We hold that the legislature of “the people” of the entire state, are the only two groups empowered to legalize forms of gambling in this State. Any attempt to legalize gambling by any other group (i.e. the electors of Deer Lodge County) is expressly forbidden by 1972 Mont.Const. Art. Ill, §-9.
Having disposed of the merits of the case, we note that this case demonstrates a serious problem facing this Court: the frivolous appeal. If cases are appealed as a matter of course, without regard to a good faith analysis of merit, this Court will not be able to avoid a serious backlog in our docket. We urge attorneys to exercise their good faith judgment before undertaking an appeal.
The judgment of the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL, and JUSTICES DALY and SHEEHY, concur.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
This is an appeal by third party defendant, Bankers Union Life Insurance Co. (BULIC) from a judgment in the District Court, Eighteenth Judicial District, Gallatin County, finding BULIC liable on a policy of credit dissability insurance issued by it to John M. and Cleo C. Goddard, third party respondents. The District Court sitting without a jury found BULIC liable to Goddard for disability benefits in the amount of $4,227.95, and further liable to Goddard for exemplary damages in the sum of $5,000.00
We affirm the District Court for the reasons following. First Security Bank of Bozeman is a Montana banking corporation operating in Bozeman, Montana. In the conduct of its ordinary business, the bank acted as an agent for BULIC, whereby the bank issued credit life and disability insurance policy for BULIC to insure payment of monies owing to the bank in case of the untimely demise or disability of the borrower.
On October 2, 1975, an officer of the bank prepared a note and security agreement for execution by the Goddards and on that same date mailed the instruments to the Goddards in Libby, Montana. The face amount of the note was $5,529.96, which sum included a premium of $248.84, financed by the bank and payable to BULIC, for credit life and credit disability insurance for the Goddards.
The Goddards received the instruments by mail on either October 4, or 5, 1975, and upon receipt of them, the Goddards executed the instruments, and placed them in the mail, with postage prepaid, addressed to the bank. The bank physically received the instruments on October 7, 1975-.
A written application by the Goddards for disability insurance is not a part of the appellate record, but in the District Court, the parties stipulated that an application for disability insurance was made by the Goddards to BULIC contemporaneously with the execution of the note and security instrument. Thereafter, it is stipulated, the insurance company accepted the application for disability insurance on October 7, 1975 and issued it policy no. 848208, providing such insurance to the Goddards.
The Goddard note of October 2, 1975 to the bank was a renewal note covering a prior existing note indebtedness from Goddard. All interest on the preexisting note was computed up to and including October 1, 1975 and stopped on that date. The interest on the renewal note commenced on October 2, 1975.
On October 5, 1975, John M. Goddard experienced some physical discomfort, which he initially attributed to some minor flu or other minor malady, for which he felt rest and aspirin would provide a cure. The discomfort however grew in intensity so that on October 7, 1975, Goddard went to Dr. William T. Matthews of Libby for examination. Dr. Matthews diagnosed the condition of Goddard at that time to be one of “coronary disease” which totally disabled Goddard until June 1, 1976.
The credit insurance policy contained, under the heading “Exceptions,” the following language:
“. . . No benefits shall be payable under the Disability portion of this policy, listed in secton E if Total Disability is caused by, or results from: ... (3) A preexisting illness, disease or physical condition which manifested themselves to the insured debtor by requiring medical diagnosis or treatment, or would have caused a reasonably prudent person to have sought medical diagnosis or treatment within six months preceding the taking of the application for insurance and which caused loss with the six months following effective date of the insurance policy, provided, however, that disability commencing thereafter resulting from such conditions shall be covered, ...”
Policy no. 848208, issued by BULIC had an effective date of October 7, 1975, a termination date of October 7, 1978, and provided a monthly indemnity for disability in the sum of $153.61 with benefits payable from the 31st day of total disability to the beneficiary, First Security Bank of Bozeman.
Goddard made written claim to BULIC for disability benefits on November 5, 1975. In his statement of claim, he indicated he had last worked on October 5, 1975, and that he had been continuously disabled from that date.
Dr. Matthews’ written report to the insurance company states that Goddard ceased work because of disability on October 5, 1975.
Goddards made no payments on the note indebtedness to the bank áfter October 2, 1975. They repeatedly demanded BULIC make such payments out of the credit disability insurance policy, but BULIC refused. The court found that as a direct result thereof the bank declared a default by the Goddards in the payment of the note indebtedness. In January 1976, the bank accelerated the payments due under the note, repossessed the Goddards vehicle and sold it at a distress sale. On February 2, 1976, the bank filed this action in the District Court against the Goddards to collect a deficiency from the Goddards in .the amount of $2,452.95, plus interest, attorney fees and costs. Goddards appeared in the action, and brought a third party complaint against BULIC for the insurance coverage, and for punitive damages for refusing to pay the Goddard claim. As we indicated, the District Court entered judgment in favor of Goddards against BULIC, and separately entered judgment in favor of the bank against Goddards for the deficiency amount due on the note, plus attorney fees. No appeal is taken from the bank judgment against Goddards.
The several issues presented by appellant can be resolved by the answers to the following questions:
(1) What is the effective date of the disability insurance provided by BULIC?
(2) What is the date of onset of Goddards’ disability?
(3) Is Goddard estopped to deny disability beginning at an earlier date, based on a misrepresentation?
(4) Should the court have limited Goddards damages to the amount due on the obligation?
(5) Should consequential damages have been awarded in this case?
(6) Are exemplary damages in this case proper and if so, are they supported in the evidence?
EFFECTIVE DATE OF DISABILITY INSURANCE
BULIC’s contention on this point is that since the insurance policy was issued effective October 7, 1975, and since it is clear that Goddards’ disability began on October 5, 1975, his disability preexisted the insurance date on the policy and the claim for disability is thereby excluded.
This contention requires consideration of the provisions of section 40-4207, R.C.M.1947, now section 33-21-203 MCA, which provides in part:
“The term of any credit life insurance or credit disability insurance shall, subject to acceptance by the insurer, commence on the date when the debtor become obligated to the creditor . . .” (Emphasis added.)
There is no question that the insurance company accepted the risk on October 7, 1975. BULIC contends however that Goddard could not have become obligated to the bank until October 7, 1975, because the note and security agreement from Goddard was not received by the bank until October 7, 1975; and because on that date, the bank, having received the note, cancelled the previous note and its indebtedness, and then in fact accepted the new obligation.
BULIC further contends that on October 4 or 5, when Goddard signed and mailed the note, he was not “obligated” upon the note. BULIC bottoms this contention upon an examination of the Uniform Commercial Code provisions, relating to the rights of the bank. BULIC contends that the bank as a holder under section 87A-3-301, R.C.M.1947, now section 30-3-301 MCA, or as a holder in due course under section 87A-3-305, R.C.M.1947, now section 30-3-305 MCA, could not enforce the note because a “holder” is defined in section 87A-1-201(20), R.C.M.1947, now section 30-1-201(20) MCA, as one in possession of the note. Section 87A-1-20K20), R.C.M.1947, now section 30-1-201(20) MCA, identifies a holder as:
“. . . a person who is in possession of ... an instrument . . . drawn, issued or endorsed to him or to his order or to bearer or m blank.”
It is BULIC’s contention that since the bank was not in possession of the note until October 7, 1975, it could not enforce the note before that date under section 87A-3-301, or section 87A-3-305, R.C.M.1947, and BULIC claims that Goddard cannot be said to have become “obligated” on the note until October 7.
This contention of BULIC goes against the grain of the legislature intent that is evidenced in the statutes relating to credit life and disability insurance. We have quoted previously the provisions of section 40-4207, which fixes the beginning term of credit disability insurance. In addition, section 40-4209, R.C.M.1947, now section 33-21-204(2) MCA, relating to the delivery of the policy provides that if the policy is not delivered at the time the indebtedness is incurred, an application shall be taken from the debtor. The provisions of section 40-4209, with respect to the application require that:
“. . . The application or notice of proposed insurance shall state that, upon acceptance by the insurer, the insurance shall become effective as of the date of indebtedness is incurred.” (Emphasis added.)
Such statutory provisions are as much a part of the credit liability insurance policy as though they were written therein. McIntosh et al. v. Hartford Fire Insurance Company (1938), 106 Mont. 434, 78 P.2d 82; Lee v. Providence Washington Insurance Company (1928), 82 Mont. 264, 266 P. 640.
The District Court took the position that the Goddards became obligated to the bank on the date that they signed the note in Libby and mailed it to the bank. We hold this position to be correct. Under section 55-216, R.C.M. 1947, (since repealed) every contract on a negotiable instrument was deemed incomplete and revocable until delivery of the instrument had been accomplished, especially as regards a remote party.
Under the Uniform Commerical Code appears that nondelivery is no defense as to a holder in due course (section 87A-3-305, R.C.M. 1947), but is a defense as to one not a holder in due course. (Section 87a-3-306, R.C.M. 1947.) With respect to the liability of a maker of a negotiable instrument, section 87A-3-413, R.C.M. 1947, now section 30-3-413 MCA provides in part;
“(1) The maker or acceptor engages that he will pay the instrument according to . . . its tenor at the time of his engagement.” (Emphasis added.)
When is the “time of his engagement” at which a maker of a promissory note becomes liable? Surely it is when he issues and delivers the promissory note. Under section 87A-3-102(l)(a), R.C.M. 1947, now section 30-3-102(l)(a), MCA, he issues the instrument upon the first delivery thereof to a holder. Under section 87A-1-201(14), now section 30-l-201(14)MCA, the maker accomplishes delivery of the instrument when he voluntarily transfers its possession. Negotiable instruments have no validity until delivered. This is still true under the UCC. Rex. Smith Propane, Inc. v. National Bank of Commerce (U.S.D.C. Texas 1974), 372 F.Supp.499.
“A note takes effect from the time of its delivery and not from its date. Until the maker of the note parts with the possession and control of the instrument, he may cancel it or dispose of it as he pleases and a note is not executed until it is delivered ...”
“When the note and trust deed were so deposited [in the mail].. . the maker, parted with the possession of and lost control over the papers and all right to retake or reclaim them. Under such circumstances, the delivery was complete . . .” Birrer v. Beckler (Ill.1914), 106 N.E.206. See also: Investors Commercial Corporated v. Metcalf (1957), 13 Ill. App.2d 99. 140 N.E.2d 924.
Thus, the promissory note was deemed delivered at the time it was mailed to the bank. The note thereupon became the property of the payee when it was posted to the bank. It was beyond the control of the makers at that time. The time of mailing therefore became the “time of his engagement”under section 87A-3-413, now section 30-3-413 MCA fixing the liability of the maker. It was at that time that Goddard became obligated to the creditor under the terms of section 40-4209, R.C.M.1947, now section 33-21-204(2) MCA.
DATE OF ONSET OF GODDARDS DISABILITY
The District Court found that at the time Goddard mailed the promissory note to the bank there was not existing such illness, disease or physical condition for which he had a medical diagnosis of a totally and permanently disabling nature, or which would have caused a reasonably prudent person to have sought diagnosis or treatment. That finding is a negation of the conditions which would exlude coverage under the BULIC policy.
Under Rule 52(a), Mont.R.Civ.P., findings of fact made by the District Court shall not be set aside unless clearly erroneous, and due regard is to be given to the opportunity of the trial court to judge the credibility of the witnesses.
Here the evidence is that the date of mailing of the promissory note was on October 4 or 5, 1975; that the onset of Goddards discomfort did not occur until October 5; and that he did not go to a medical doctor until October 7, 1975. In fact the evidenc is uncontroverted. Since the District Court accepted the credibility of the Goddards with respect to these matters, and nothing in the record makes such evidence inherently incredible, there is substantial evidence to support the findings of the court. See Arrowhead, Inc. v. Safeway Stores, Inc. (1978), . . . Mont. . . ., 587 P.2d 411, 35 St.Rep. 1830, and cases cited therein.
ESTOPPEL BY VIRTUE OF MISREPRESENTATION
Under this contention, BULIC argues that Goddard misinformed the insurance company as to the date of the beginning of his disability and is therefore estopped to claim any other date of onset. Goddards statement of claim to BULIC indicated that he was totally disabled on October 5, 1975 and was his last day of work. He was examined by Dr. Matthews on October 7, and in Dr. Matthews’ report, it is stated that Goddard was totally disabled from October 5. Goddard testified that he asked Dr. Matthews to “backdate” the onset of his disability. When he was testifying however, he stated that he worked until October 5, 1975. BULIC claims that the initial statement that his disability began on October 5, 1975 is fraudulent and by virtue thereof Goddard is estopped from claiming any other time of disability.
The District Court found that Goddard’s coronary disease was diagnosed on October 7, 1975.
The elements of equitable estoppel (section 93-1301-6, R.C.M.1947, now section 26-1-601 (MCA) which BULIC claims apply here include the contention that BULIC denied Goddard’s claim because of his representation that the disability began on October 5, 1975, and that BULIC returned his premium based upon such representation. What this argument of BULIC disregards is that it denied the claim because of its mistaken impression that the effective date of the insurance was October 7, 1975. BULIC had mistakenly concluded that the obligation was not incurred as far as Goddard was concerned until the bank had actual physical possession of the note and security instrument and issued the insurance policy. As we have demonstrated above under the first issue, this is not the law. Therefore the representation by Goddard, if false, was not material to the risk assumed by BULIC under its insurance policy. It requires a material misrepresentation by an applicant relied on by the insurer to avoid coverage under an insurance policy. See section 40-3713, R.C.M.1947, now section 33-15-403 MCA. It was not the representation by Goddard that his disability commenced on October 5, 1975 that caused BULIC to change his position for the worse; rather, it was BULIC’s mistaken position that October 7 was the date when Goddard became obligated to the bank that caused it to deny coverage. Estoppel has reference to the conduct of the person estopped. Bagley v. Hotel Florence Company (1974), 165 Mont. 145, 526 P.2d 1372. Estoppel has no application where the omissions of the party claiming estoppel brought about the problem.
THE PROPER MEASURE OF DAMAGES AND CONSEQUENTIAL DAMAGES
Under these issues, BULIC claims that the amount of damages awarded by the District Court, $4,227.95, was excessive.
BULIC contends that the insurance contract was an agreement for payment of money only and therefore the proper measure for damages for a breach of the agreement is section 17-303 R.C.M.1947, now section 27-1-312 MCA, which provides;
“The detriment caused by the breach of an obligation to pay money only is deemed to be the amount due by the terms of the obligation with interest thereon.”
BULIC further contends that under the Insurance Code, section 40-4206(2), R.C.M.1947, now section 33-21-202 MCA, states that the amount payable under a credit disability insurance plan shall equal the aggregate of the periodic unpaid scheduled installments “in the event of disability”. Since Goddard was disabled for seven months, BULIC contends the maximum statutory benefit payable will be seven times $153.61, which equals $1,075.27. Any amount in éxcess of that for direct damages BULIC contends is improper.
Moreover, BULIC also contends that Goddard is not entitled to consequential damages and that the only amounts which the court may properly award over the seven unpaid installment is such interest as may be found due. Goddard answers this issue claiming that section 17-301, R.C.M.1947, now section 27-1-311 MCA is applicable and that Goddard is entitled to receive “the amount which will compensate the party aggrieved for all the detriment proximately caused thereby.” Goddard further contends that section 17-303 is intended only as guide to the estimation of damages under the cases of Zook Brothers Construction Company v. State of Montana (1976), 171 Mont. 64, 556 P.2d 911; Wyatt v. School District No. 104 (1966), 148 Mont. 83, 417 P.2d 221; and Orford v. Topp (1959), 136 Mont. 227, 346 P.2d 566. Goddard also relies on Wiseman v. Holt (1973), 163 Mont. 387, 517 P.2d 711, but this case was overruled in Whitney v. Bails (1977), 172 Mont. 121, 560 P.2d 1344.
Neither of the positions taken by the opposing parties here quite hits the mark as to the proper measure of damages recoverable in such a case as the one at bar.
Under the pleadings of the parties, and the findings of the court, the claim of Goddard is one sounding in tort involving a breach of contract. In their third party complaint, Goddards allege that BULIC “wrongfully refused to make payment of the insurance benefits to which [Goddard] were entitled, with the result that [Goddard’s] automobile was repossessed” by BULIC. No breach of contract as such is alleged in the third party complaint. The District Court did not make a finding that a breach of contract, as such, existed here. Rather is found that BULIC had “failed and refused” to make the payments under the disability insurance policy to Goddard and as a direct consequence, the bank declared his default, accelerated the payments due under the note, and thereafter repossessed Goddards vehicle and sold it at a.distress sale. Thereafter, the court found, the bank commenced the instant case to collect a deficiency sum from Goddard.
In it conclusions, the District Court found that BULIC had violated the provisions of Chapter 42, Title 40, R.C.M. 1947. It is on this basis that the court founded its award of damages and punitive damages.
A cause of action may sound in tort although it arises out of a breach of contract, if a defaulting party, by breaching the contract, also breaches a duty which he owes to the other party independently of the contract. This distinction was carefully noted in Battista v. Lebanon Trotting Association (U.S.C.A. 6th 1976), 538 F.2d 111, where the Sixth Circuit Court applied Ohio law. There the court noted that under Ohio law a tort arises out of a breach of contract if the party also breaches a duty which he owes to another independently of the contract, and which duty would exist even if not contract existed. It is this factor that determines whether an action of this kind is one of contract or of tort. The federal court noted that two cases in Ohio had recently allowed tort damages in breach of contract cases and said:
“These cases are the first in Ohio to recognize the legal trend toward punishing an insurance company for willful refusal to pay a valid claim. Such a tort claim, however, is founded upon a legal duty rather than a contractual duty.
‘An insurer owes it insured an implied-in-law duty of good faith and fair dealing that it will do nothing to deprive the insured of the benefits of the policy. (Fletcher v. Western National Life Insurance Company, 10 Cal.App.3d 376, 89 Cal.Rptr. 78, 47 A.L.R.3d 286, 305 (1970).)’
“. . . This special duty, enforced through tort liability, is necessary because of the relationship between the parties and the fact that in the insurance field the insured usually has no voice in the preparation of the insurance policy and because of the great disparity between the economic positions of the parties to a contract of insurance; and furthermore, at the time an insured party makes a claim he may be in dire financial straits and therefore may be especially vulnerable to oppressive tactics by an insurer seeking a settlement of a release. “The special considerations existent in a consumer-held insurance contract do not apply to an ordinary contract between businessmen . . .” 538 F.2d at 117, 118.
In Montana, insurance companies insuring credit disability risks have a statutory duty that exists beyond the insurance contract itself. Their statutory duty under section 40-4213, R.C.M. 1947, now section 33-21-105 MCA, is that all claims shall be settled as soon as possible and in accordance with the terms of the insurance contract. Thus, BULIC not only had a contractual duty to make payment of a valid claim to Goddard, but it had the statutory duty to do so as soon as possible. It is the breach of that statutory requirement, a duty independent of the insurance contract, that gives rise to tort liability in the case at bar.
Thus, the insurer’s duty of good faith and fair dealing with its insureds in the payment of claims had statutory blessing and authority. Accordingly, the measure or damages in such a case as the one at bar is provided in section 17-401, R.C.M. 1947, now section 27-1-317 MCA which allows compensation “for all the detriment proximately caused thereby whether it could be anticipated or not.”
This Court recognized that a breach of contract might also give rise to an action in tort in State ex rel. Larson v. District Court (1967), 149 Mont. 131, 136, 423 P.2d 598, 600, when it said:
“Thus, in the insurance contract we have a unique situation; that is, some acts may be both breaches of contract and violations of the laws of Montana.”
THE ISSUE OF PUNITIVE DAMAGES
BULIC makes a two-pronged attack on the $5,000.00 punitive damages awarded by the District Court. BULIC contends that there is no authority for punitive damages in this case because of breach of contract and that in any event the evidence is insufficient to support an award of punitive damages.
The propriety of recovery of punitive damages for breaches of insurance contracts where a statutory duty is also violated was settled in this state in State ex rel. Larson.
Here BULIC distinguishes Larson saying a violation of section 40-4213, that “all claims shall be settled as soon as possible” is not a statute for which a penalty is assessed. Therefore, even under Larson, BULIC contends that punitive damages may not be awarded in this case.
BULIC contends that seciton 40-4213, R.C.M.1947, now section 33-21-105 MCA has no self-executing criminal sanction. To enforce it, BULIC argues that one must first get an order from the Commissioner of Insurance, section 40-4215, R.C.M.1947, now section 33-21-111 MCA. Thereafter, there should be a judicial review, section 40-4216, R.C.M. 1947 now section 33-21-112 MCA, after which penalties for violations of the orders of the Commissioner of Insurance are set forth as criminal penalties. Section 40-4217, R.C.M.1947, now section 33-21-113 MCA. BULIC points out there is no specific statute assessing a criminal penalty directly for a violation of section 40-4213.
BULIC’s contentions on this point cannot be sustained, because a violation of section 40-4213, with respect to failure of prompt payment of claims of credit disability cases, is subject to the general penalty provided by section 40-2617, R.C.M.1947, now section 33-1-104 MCA. That section provides:
“Each violation of any provision of this code, with respect to which violation a greater penalty is not provided by other applicable laws of this state, shall, in addition to any administrative penalty otherwise applicable thereto, upon conviction in a court of competent jurisdiction of this state by punishable by a fine of not less than $50 or more than $ 1,000 or by imprisonment in the county jail for not less than 30 days or more than 90 days or by both such fine and imprisonment.”
There being a criminal penalty available for a violation of section 40-4213, this case is within the rule set forth in Larson, and in Paulson v. Kustom Enterprises, Inc. (1971), 157 Mont. 188, 483 P.2d 708. We distinguish State ex rel. Cashen v. District Court (1971), 157 Mont. 40, 482 P.2d 567 because in Cashen no criminal penalty was involved.
BULIC next contends that even if punitive damages could be awarded here, there is not evidence that BULIC acted wantonly, maliciously or oppressively' so as to entitle Goddard to such punitive damages.
The findings of the District Court noted the failure of BULIC to make the payments, the direct consequence of the acceleration of Goddard’s note, the subsequent repossession of Goddards’ vehicle to be sold at a distress sale and finally, the filing of the deficiency action against Goddards. The District Court also noted that BULIC was repeatedly requested by counsel for Goddard “and implored to make payment of the disability benefits” and that the failure and refusal of BULIC to make payment of the disability benefits was an oppressive act or omission on the part of BULIC. The court concluded that by virtue of the violation of section 40-4213, and the distress which resulted therefrom to Goddard, that Goddards were entitled to exemplary damages.
It is not necessary to show actual malice to recover punitive damages. Harrington v. Holiday Rambler Corporation (1978), 176 Mont. 37, 575 P.2d 578. Fraud on malice may be actual or presumed. Section 17-208, R.C.M.1947, now section 27-1-221 MCA. Implied malice may be shown by proof that defendant engaged in a course of conduct knowing it to be harmful and unlawful. Ferguson v. Town Pump, Inc. v. Wallace Diteman (1978), 177 Mont. 122, 580 P.2d 915, 921; Miller v. Fox (1977), 174 Mont. 504, 571 P.2d 804; Cashin v. Northern Pacific Railway Company (1934), 96 Mont. 92, 28 P.2d 862.
“Malice-in-law” is implied where the defendant’s conduct is unjustifiable. Cherry-Burrell Company v. Thatcher (U.S.C.A. 9th 1939), 107 F.2d 65, 69 (applying Montana law). Here, BULIC’s conduct was both harmful to Goddard and unlawful because it violated a statute. Its malice will therefore be implied because its actions were unjustifiable.
BULIC claims it was acting in good faith in denying the disability benefits because Goddard and his doctor had reported Goddard to be continuously disabled from October 5, two days before BULIC claims insurance coverage commenced. Again, it is not the claim of Goddard or his doctor as to the commencement of the disability, but BULIC’s incorrect position that the coverage commenced on October 7, that brought about the denial. BULIC has persisted in insisting that the coverage began on October 7 even through this appeal, in the face of section 40-4027 and 40-4209 which provide that the term of credit disability insurance shall become effective when the indebtedness is incurred.
No issue is raised by BULIC as to the amount of exemplary damages to be awarded. The office of an award of exemplary damages is to punish the defendant for malicious and wrongful acts, be the malice actual or presumed, where the defendant should suffer some additional penalty for the wrongful conduct and where the exemplary damages will serve as a warning to others and as a deterrent and punishment to the defendant. See Kesler v. Rodgers (Utah 1975), 542 P.2d 354.
The judgment of the District Court is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, SHEA and DALY concur.
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On September 10,1992, the Defendant was sentenced to forty (40) years with fifteen (15) years suspended for Mitigated Deliberate Homicide. The Defendant shall receive credit for time served in the amount of 193 days. The Defendant shall be designated a dangerous offender for parole eligibility purposes. The Defendant shall not be considered eligible for parole until he has successfully completed the inpatient alcohol and drug treatment programs at the Montana State Prison. The Defendant shall not be considered eligible for parole until he has completed aggression management treatment at the Montana State Prison. The suspended portion of the sentence shall be upon the conditions listed in the September 10, 1992 Judgment signed by Judge McNeil. The Defendant shall pay TWENTY DOLLARS ($20.00) surcharge as required by law, which shall be paid to the Clerk of the District Court.
On May 7,1993, 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 proceeded pro se. The state was represented by Lake County Attorney Larry Nistler.
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.
DATED this 7th day of May, 1993.
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 Mr. Jennings for representing himself in this matter. The Board would also like to thank County Attorney Larry Nistler for representing the State of Montana.
|
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JUSTICE TRIEWEILER
delivered the opinion of the Court.
This is an appeal from the judgment of the District Court of the Eighteenth Judicial District in Gallatin County, terminating the parental rights of the natural mother. We affirm
The issues on appeal are whether the mother’s treatment plan ordered by the District Court was appropriate, and whether the termination of her parental rights violated her right to due process.
Appellant is the natural mother of J.R. and S.D., as well as two older children. The Montana Department of Family Services first had contact with the mother in 1979 after reports of poor hygiene, lack of supervision, and physical abuse of the two oldest children were brought to the Department’s attention. The mother subsequently entered into an agreement with the Department to seek day care for J.R. and therapy counseling for the two oldest children.
In 1984 and 1985, the family was living in Idaho Falls, Idaho. The Idaho Department of Family Services received reports similar to those made in Montana. The Idaho DFS intervened, and the two oldest children were placed in protective supervision with the mother’s sister in Bozeman, Montana. Following a divorce in 1986, the mother returned with J.R. to the Bozeman area. School authorities noted that J.R. evidenced the same lack of hygiene that her older siblings had shown. J.R.’s kindergarten teacher eventually contacted a social worker, Gloria Edwards, who met with J.R. in September 1989, and confirmed her lack of good hygiene. Edwards filed a Request for a Petition for Temporary Investigative Authority that was not acted upon by the county attorney’s office.
In April 1990, Ms. Edwards was again called to the school to see J.R. Edwards gave the following description of J.R.’s condition:
She was absolutely filthy. She had dirt on her arms, her hands and her face. And her hair looked all sticky and it had things stuck all over it. And I couldn’t tell what they were. I thought it looked maybe like leaves. It was difficult to distinguish. When the other kids left, then I had her roll up her long sleeves and her arms had caked-on dirt just stuck to her. Her teeth also looked really brown and rotting.
Edwards spoke with the child at length, and J.R. divulged information that led Edwards to believe she was being sexually molested by a male baby sitter. Edwards decided to invoke emergency protective powers and remove J.R. and S.D. from their home. Ahearing was held, and the District Court ruled that removal of the children from the home was appropriate. An investigation that had been ongoing since September 1989 resulted in the arrest of the suspect on charges of sexual assault of J.R. on April 10, 1990. The individual was found guilty in a bench trial of sexual assault of J.R. and sentenced to the Montana State Prison. The sentence was affirmed by this Court in State v. Davis (Mont. 1992), [253 Mont. 50,] 830 P.2d 1309, 49 St. Rep. 342.
Ahearing on the State’s petition for termination of parental rights was held on December 17,18, and 19,1990. Several State’s witnesses testified to the lack of success of the court-ordered treatment plan and treatment contract. Reasons given in support of termination included: the refusal of the mother to admit any parenting problems; the lack of concern over the sexual abuse of J.R.; the cyclical nature of sexual abuse and physical neglect in the family, as evidenced by the two oldest children; the inability of the mother to protect the children, given that the grandmother of the children was sexually involved with Davis and gave testimony in his defense; the lack of normal interaction between the mother and children during supervised visits; the continuing health and safety problems at the mother’s residence; and the great progress that J.R. showed both academically and socially since being removed from the mother’s home.
The District Court concluded that the treatment plan had not been complied with, and that the situation rendering the mother an unfit parent was unlikely to change in the future. The court concluded that the mother’s professionally diagnosed chronic paranoia was of such a nature that it rendered her unlikely to care for the ongoing physical, mental, and emotional needs of her children. The court, therefore, terminated the parent-child relationship between the mother and J.R. and S.D. Custody of J.R. was given to the Montana Department of Family Services. Custody of S.D. was given to her natural father. The mother appeals from this judgment.
The mother contends that the court-ordered treatment plan was inappropriate, resulting in the termination of her parental rights without due process of law.
Section 41-3-609, MCA (1989), sets forth the criteria for termination of the parent-child relationship. The statute states in part:
(1) The court may order a termination of the parent-child legal relationship upon a finding that the circumstances contained in subsection (l)(a), (l)(b), or (l)(c), as follows, exist:
(c) the child is an adjudicated youth in need of care and both of the following exist:
(1) an appropriate treatment plan that has been approved by the court has not been complied with by the parents or has not been successful; and
(ii) the conduct or condition of the parents rendering them unfit is unlikely to change within a reasonable time.
(2) In determining whether the conduct or condition of the parents is unlikely to change within a reasonable time, the court must enter a finding that continuation of the parent-child legal relationship will likely result in continued abuse or neglect or that the conduct or the condition of the parents renders the parents unfit, unable, or unwilling to give the child adequate parental care. In making such determinations, the court shall consider but is not limited to the following:
(a) emotional illness, mental illness, or mental deficiency of the parent of such duration or nature as to render the parent unlikely to care for the ongoing physical, mental, and emotional needs of the child within a reasonable time;
(g) any reasonable efforts by protective service agencies that have been unable to rehabilitate the parent.
(3) In considering any of the factors in subsection (2) in terminating the parent-child relationship, the court shall give primary consideration to the physical, mental, and emotional conditions and needs of the child. The court shall review and, if necessary, order an evaluation of the child’s or the parent’s physical, mental, and emotional conditions.
The mother contends that the treatment plan implemented in her case was not appropriate, as required by § 41-3-609(l)(c)(i), MCA. She asserts that the court failed to consider her financial situation when it ordered her to undergo a treatment plan. She claims that the court’s failure resulted in her inability to receive proper treatment that would have facilitated the preservation of the parent-child relationship as promoted by the statute and case law.
The mother contends that the primary goal of her treatment plan was psychological therapy. She states she was ordered by the court to pay for her own therapy and was unable to do so because she was indigent, dooming the treatment plan to failure. She contends that because the treatment plan was a fundamental element of the termination procedure, she was denied due process.
The termination of parental rights invokes fundamental liberty interests. Santosky v. Kramer (1982), 455 U.S. 745, 102 S. Ct. 1388, 71 L. Ed. 2d 599. The State bears the burden of proving by clear and convincing evidence that all statutory criteria needed to terminate parental rights have been met, including the appropriateness of the treatment plan. Santosky, 455 U.S. at 769, 102 S. Ct. at 1403, 71 L. Ed. 2d at 616; In re L.W.K. (1989), 236 Mont. 14, 18, 767 P.2d 1338, 1341. In this case, the treatment plan was agreed upon by the mother with the advice of her counsel. While that fact should be given consideration it does not by itself prove the plan was appropriate. Matter of R.H. (Mont. 1991), [250 Mont. 164,] 819 P.2d 152, 155, 48 St. Rep. 692, 694.
The court-ordered treatment plan and contract entered into by the mother states that the goal of the agreement is “to assist [the mother] in improving her protection and parenting abilities with her children ....” The return of the children to the mother was contingent upon the successful completion of the tasks outlined in the contract and the continued evaluation by the Department of Family Services and other professionals described in the contract regarding the mother’s capacity to adequately protect and care for her children. Among the specific tasks outlined for the mother were:
1. I agree to contact a psychologist of my choice and obtain a psychological evaluation as soon as possible. I agree that this evaluation will specifically address my ability to understand the needs of children and my capacity to make necessary changes to adequately protect and care for my children. I agree to allow the psychologist access to all available background information on my parenting difficulties.
2. I agree to continue weekly mental health counseling with a psychologist or licensed professional counselor of my choice. I agree to allow communication between the counselor and DFS representative regarding my progress in making necessary changes to understand the needs of my children and to adequately protect and care for them.
5.1 agree to allow the Gallatin County Health Department to make unannounced visits a minimum of one time monthly to determine if my living conditions are sanitary and suitable for young children. Results of each visit will be made available to myself and to the DFS representative.
An evaluation on the mother was performed by Dr. Richard Traynham, a licensed clinical psychologist. Relying on standard psychometric tests, clinical interviews, and background information provided by the DFS, Dr. Traynham concluded that the mother suffered from a chronic, entrenched paranoid personality disorder. Dr. Traynham discussed the results of his evaluation with the mother. His conclusions were that therapy would not be beneficial at that time due to the entrenched nature of her paranoid personality disorder. He noted that the mother consistently refused to admit that she had any problems, making the prognosis for change and a beneficial therapeutic relationship poor. Consequently, Dr. Traynham supported the termination of the mother’s parental rights.
Visits to the mother’s home by the Gallatin County Health Department officials pursuant to the contract demonstrated an environment which was unsuitable for children. An open irrigation ditch ran adjacent to the mobile home, garbage and clutter surrounded the property, and the home itself had no running water and was filthy and cluttered. During one visit, the mother fled from the home to avoid the officials and was found waist deep in the water, hiding behind a tree. She returned to her home at the request of the officials. The mother later moved to another mobile home which was in an adult’s only section of the park. When asked by the manager if she intended to bring her children to live with her, she responded that she intended to leave the state upon reobtaining custody of the children.
There was substantial testimony regarding the failure of the court-ordered treatment plan. The stated goal of the plan was to assist the mother’s parenting abilities. It addressed changing behavior to accept responsibility for the children, and to make the home environment healthy and safe. The testimony indicated that the home environment continued to be grossly inadequate in terms of health and safety, and that the mother continued in her denial of any parenting difficulties, including that J.R. had ever been abused. When the treatment plan was initiated by the court, the condition of the mother’s mental state was not known. Upon psychiatric evaluation, it became apparent that the mother’s mental illness was of such a nature that further mental counseling would be of little therapeutic benefit. Under these circumstances, the treatment plan implemented in the mother’s case was appropriate.
Substantial evidence was presented that the children were abused and neglected; that the mother’s mental state rendered her an unfit parent; and that the situation was not likely to change within a reasonable time. Evidence showed (1) that the mother’s residences were consistently unsuitable for children; (2) that J.R. was dirty and evidenced social and scholastic impediments while in the mother’s care, and that marked improvement occurred upon removal from her care; and (3) that the mother showed a serious ambivalence in regard to her role as a mother, a lack of good judgment and an incapacity to provide long-term care and protection for her children. The decision of the district court to terminate parental rights will not be disturbed on appeal unless there is a mistake of law or a finding of fact not supported by substantial evidence that would amount to a clear abuse of discretion. Matter of S.P. (1990), 241 Mont. 190, 786 P.2d 642. There is substantial, credible evidence in this case to support the District Court’s conclusion that J.R. and S.D. are youths in need of care, that the treatment plan was unsuccessful, and that the mother’s condition is unlikely to change within a reasonable time. Accordingly, we affirm the judgment of the District Court.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, HARRISON and WEBER concur.
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On January 13, 1993, the Defendant was sentenced to ninety (90) years for Aggravated Kidnapping with twenty (20) years suspended; subject to the conditions and requirements as stated in the January 13, 1993 Judgment by Judge Keedy. Dangerous designation was imposed and the Defendant is to be given credit for 233 days time served.
On May 7,1993, 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 proceeded pro se. 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 did not wish to proceed.
IT IS HEREBY ORDERED that the application for review of sentence shall be dismissed with prejudice with leave to refile at a later time.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. John Warner, Judges
|
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On December 23, 1992, the Defendant was sentenced to five (5) years for Sexual Intercourse Without Consent. The Defendant is granted no credit for street time and shall not be eligible for parole until he obtains and completes sex offender treatment.
On May 7,1993, 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 proceeded pro se. 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, there is a split decision of the Sentence Review Division. The sentence shall be affirmed 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, and Hon. John Warner, Judge
DISSENT: THE HONORABLE G. TODD BAUGH DISSENTS. He would have amended the sentence upward to include the stipulation that the Defendant would not be eligible for parole for the entire five (5) year term. Judge Baugh finds that the victim of this offense is at risk. If this sentence were imposed by the Sentence Review Division, the case would be referred to counsel pursuant to Rule 14 of the Rules of the Sentence Review Division.
The Sentence Review Board wishes to thank Mr. Tissue for representing himself in this matter.
|
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JUSTICE GRAY
delivered the Opinion of the Court.
Old Republic Insurance Company appeals from the judgment of the Workers’ Compensation Court that Glenn E. Welch suffered a compensable injury arising out of the course and scope of his employment on April 27, 1989. We affirm.
The sole issue is whether the Workers’ Compensation Court erred in concluding that claimant sustained a compensable injury pursuant to § 39-71-119, MCA (1987).
Glenn E. Welch (Welch) was employed as a driller by American Mine Services, Inc. at a mine near Nye, Montana. His job required using heavy power drills to bore holes for mining purposes and, during some shifts, extensive walking and standing.
State and federal regulations require mine employees such as Welch to wear either steel-toed or metatarsal safety boots. A steel-toed safety boot has a steel or fiberglass cap which covers just the toes. A metatarsal boot has a steel or fiberglass toe covering which extends over the top of the foot and leather uppers which cover the ankles.
Sometime before April 27, 1989, Welch requested a new pair of steel-toed safety boots from American Mine Services, which provides free boots to its mine workers. The boots which arrived April 27,1989, were the metatarsal type. Welch wore them to work that day. He states that the boots were a snug fit, but he expected them to loosen up with wear. Throughout his twenty-five year career working in the mines, Welch had broken in many new boots, finding that normally they loosened up within a few hours.
Toward the end of an active shift on April 27, 1989, Welch noticed that his feet were beginning to get sore and his new boots were still a snug fit. Upon removing his boots at the end of the shift, Welch noticed red sores the size of a thumbnail on both the third and fourth toes of his right foot. The sores were open and draining.
Welch had difficulty sleeping the night of April 27 because of burning and pain in his foot. He treated the sores numerous times with alcohol and later with Neosporine, an antifungal antibiotic. They continued to drain throughout the night.
Welch again attempted to wear the new boots to work the next day, but his foot was extremely sore so he wore his old work boots which were looser and roomier and did not irritate his toes. Welch worked an entire shift on April 28, and thereafter was laid off due to a reduction in force.
Welch sought medical attention for his foot on May 1, 1989 when he called his family physician, Dr. Robert Flaherty. Dr. Flaherty was unable to see him until May 5, at which time Welch explained that he had worn new boots a week previously that rubbed his toes.
During this visit, Welch informed Dr. Flaherty that he had been soaking his foot and trying to reduce the amount of time he spent on his feet. Dr. Flaherty asked Welch if he had diabetes. After Welch replied in the negative, Dr. Flaherty diagnosed Welch’s condition as an “abscess and cellulitis of the right fourth toe.” The doctor then prescribed further soakings and an antibiotic. In his deposition, Dr. Flaherty opined that Welch’s toe became infected after the new boots rubbed the skin off his toes.
Dr. Flaherty examined and treated Welch on May 8, 10, and 12, 1989; on May 15, 1989, Welch was admitted to Bozeman Deaconess Hospital. At this time, Dr. Flaherty referred Welch to Dr. Lowell Anderson, an orthopedic surgeon, because he thought the bone of Welch’s right foot might be affected. During Welch’s stay at Deaconess, his right fourth toe was amputated. Dr. Anderson’s post-surgery diagnosis was deep foot infection probably complicated by diabetes. Welch was released, but was hospitalized again in March of 1990 because of abscess and infection to the foot. Welch was hospitalized subsequently in October of 1990 and March of 1991.
Old Republic, American Mine Services’ workers’ compensation carrier, accepted Welch’s claim under the Montana Occupational Disease Act and paid him disability benefits thereunder. On May 14, 1991, the Workers’ Compensation Court considered Welch’s claim that his injury arose out of the course and scope of his employment with American Mine Services, Inc. and was not an occupational disease. In its Findings of Fact and Conclusions of Law and Judgment dated August 21, 1991, the court found Welch’s condition to be compensable under the Workers’ Compensation Act of 1987. Old Republic Insurance and American Mine Services appealed.
The sole issue on appeal is whether the Workers’ Compensation Court erred in concluding that claimant sustained a compensable injury pursuant to § 39-71-119, MCA (1987). Because this case involves an issue of law, we will review the decision of the Workers’ Compensation Court to see if it is legally correct. Stuker v. State Comp. Mutual Ins. Fund (Mont. 1991), [251 Mont. 96,] 822 P.2d 105, 48 St.Rep. 1071; Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 803 P.2d 601.
Section 39-71-119, MCA (1987), is the statute at issue:
(1) “Injury’ or “injured” means:
(a) internal or external physical harm to the body;
(b) damage to prosthetic devices or appliances, except for damage to eyeglasses, contact lenses, dentures, or hearing aids; or
(c) death.
(2) An injury is caused by an accident. An accident is:
(a) an unexpected traumatic incident or unusual strain;
(b) identifiable by time and place of occurrence;
(c) identifiable by member or part of the body affected; and
(d) caused by a specific event on a single day or during a single work shift.
(3) “Injury” or “injured” does not mean a physical or mental condition arising from:
(a) emotional or mental stress; or
(b) a nonphysical stimulus or activity.
(4) “Injury” or “injured” does not include a disease that is not caused by an accident.
(5) A cardiovascular, pulmonary, respiratory, or other disease, cerebrovascular accident, or myocardial infection suffered by a worker is an injury only if the accident is the primary cause of the physical harm in relation to other factors contributing to the physical harm.
A compensable injury must meet all three definitional requirements contained in § 39-71-119, MCA (1987): there must be an “injury” and an “accident,” and the injury must be “caused by” the accident. Old Republic contends that these requirements are not met, asserting primarily that Welch’s deep foot infection took nineteen days to develop, was not unexpected, and was the end result of a number of factors including his diabetes. Old Republic’s approach, focusing as it does on Welch’s diabetes rather than on the initial incident which led to the deep foot infection, is misplaced.
The well-established rule in Montana is that an employer takes an employee subject to the employee’s physical condition at the time of employment. Shepard v. Midland Foods, Inc. (1983), 205 Mont. 146, 666 P.2d 758; Schumacher v. Empire Steel Manufacturing Co. and Employers Mutual Liability Insurance Co. (1977), 175 Mont. 411, 574 P.2d 987. With this principle as a starting premise, § 39-71-119, MCA (1987), can be considered in a clear and straightforward manner.
The parties agree that physical harm occurred to Welch’s foot. Old Republic contends, however, that Welch’s physical condition arose from the “nonphysical stimulus” of his diabetes; therefore, according to the appellant, § 39-71-119(3)(b), MCA (1987), prevents the condition from constituting an injury. This argument ignores the fact, undisputed on the record before us, that the sores on Welch’s foot initially arose from the physical stimulus of ill-fitting boots. The requirement for an injury under § 39-71-119(1), MCA (1987), is met.
Section 39-71-119, MCA (1987), also requires that an accident occur. Old Republic contends that three of the four statutory requirements for an accident are not met in this case.
Section 39-71-119(2)(b), MCA (1987), requires that an accident be identifiable by time and place of occurrence. Old Republic argues that Welch’s condition does not meet this requirement because it took nineteen days for the infection to develop to a point requiring hospitalization. The record reveals, however, that Dr. Flaherty and Old Republic’s expert witness agree that the infection which developed in Welch’s foot initially was caused by Welch’s new boots rubbing sores dining his work shift of April 27, 1989. We conclude that the initial incident which ultimately led to Welch’s severe infection occurred during unidentifiable time, the April 27,1989 shift, and at an identifiable place, the underground mine near Nye, Montana. Thus, § 39-71-119(2)(b), MCA (1987), is satisfied.
Similarly, Old Republic next contends that Welch’s condition was the culmination of such factors as his diabetes, vascular calcification and diabetic neuropathy. Arguing that the condition is similar to those of claimants in Wear v. Buttrey Foods, Inc. (1988), 234 Mont. 477, 764 P.2d 139; McMahon v. Anaconda Co. (1984), 208 Mont. 482, 678 P.2d 661; and Whittington v. Ramsey Construction Co. and Fabrication (1987), 229 Mont. 115, 744 P.2d 1251, Old Republic asserts that the time definiteness required by § 39-71-119(2)(d), MCA (1987), is not met.
The physical conditions in the cases relied on by Old Republic were brought about by many years of repetitious activity or exposure to pollutants; as a result, we held that they lacked the time definiteness required. The facts before us are not analogous. Here, an initial and identifiable incident of physical harm occurred on April 27, 1989, when Welch’s ill-fitting boots rubbed sores on his foot. As discussed previously, Old Republic’s focus on complications subsequent to that initial incident is misplaced. The initial incident was a “specific event ... during a single work shift” as required by § 39-71-119(2)(d), MCA (1987).
Finally, § 39-71-119(2)(a), MCA (1987), requires that an accident be an unexpected and traumatic incident or unusual strain. Old Republic argues that Welch’s deep foot infection was to be expected because he was a diabetic.
The common meaning of “unexpected” is “unlooked for, unforeseen, surprising.” Webster’s Third International Dictionary (1971). We note that the 1987 amendments to § 39-71-119, MCA, retain the word “unexpected” from the pre-1987 definition of injury. In Bremer v. Buerkle (1986), 223 Mont. 495, 727 P.2d 529, we affirmed the Workers’ Compensation Court’s decision that a worker’s allergic contact der matitis constituted an injury because it met the “unexpected” requirement of the statute. In Bremer, the claimant had been working with the same chemicals for nine years without sustaining any allergic reaction. We concluded that, despite this ongoing contact, the chemical contact which occurred on one day unexpectedly stimulated his immune system and led to an allergic reaction. In a similar fashion, Welch had experienced no problems in breaking in new safety boots during his many years of working in mines. Despite this twenty-five year history, the new boots he wore on April 27, 1989, rubbed sores on his foot which became infected. We conclude that the incident was unexpected under § 39-71-119(2)(a), MCA (1987).
Old Republic also contends that the use of the word “traumatic” necessitates the presence of force or violence, neither of which is present under the facts of this case. Webster’s Third International Dictionary (1971) defines “trauma” as “an injury or wound to a living body caused by the application of external force or violence.” Old Republic’s expert witness, Dr. Robert Nielson, when asked during his deposition whether Welch’s blisters could be considered a trauma, responded: “Sure.” Dr. Nielsen continued to refer to the rubbing of Welch’s toes as a trauma to the foot. We conclude that the rubbing of the ill-fitting boots was a traumatic incident under § 39-71-119(2)(a), MCA (1987).
Welch sustained an injury and an accident under § 39-71-119(1) and (2), MCA (1987). The only remaining question is whether the accident “caused” the injury, as also required by § 39-71-119, MCA (1987).
Arguing against this causal link, Old Republic asserts that under § 39-71-119(4), MCA (1987), Welch’s diabetes is a disease that is not caused by an accident. Old Republic is correct; however, Welch’s diabetes is not at issue here. The diabetes predated the injury to Welch’s foot on April 27,1989. While the diabetes apparently resulted in more severe complications from the initial incident than would have been experienced by a nondiabetic, the initial incident constitutes an injury under § 39-71-119, MCA (1987).
Similarly, Old Republic presents a somewhat convoluted argument that Welch’s diabetes is an “other disease” under § 39-71-119(5), MCA(1987), which does not constitute an injury. Old Republic asserts that the initial abrasions were not the primary cause of Welch’s physical harm in relation to other factors which produced the deep foot infection. We considered the meaning of “primary cause” under § 39-71-119(5), MCA (1987), in Gaumer v. State Compensation In surance Fund (1990), 243 Mont. 414, 795 P.2d 77. In Gaumer, the claimant had a history of respiratory ailments prior to her work-related accident involving toxins in the work place. We found that claimant’s condition was compensable under the Workers’ Compensation Act:
[T]he drastic change in the claimant’s medical condition was primarily caused by the accident in the work place where she was exposed to chemical toxins or allergens, it was not merely the progressive result of her pre-existing respiratory ailments.
Gaumer, 243 Mont. at 420, 795 P.2d at 80-81. Likewise, the significant change in Welch’s physical condition was primarily caused by the injury and accident which occurred when his ill-fitting safety boots rubbed abrasions on his foot. While the diabetes may have exacerbated the ultimate severity of the original injury, Welch’s medical condition was not merely the progressive result of his pre-existing diabetes.
Old Republic makes a final argument, without supporting authority, that the 1987 amendments to the Workers’ Compensation Act were intended to substantially restrict the definitions of “injury” and “accident.” Because the plain meaning of the words used in the statute is determinative in this case, consideration of the legislative history is inappropriate. State ex rel. Roberts v. PSC (1990), 242 Mont. 242, 790 P.2d 489.
We conclude that the rubbing of sores on Welch’s toes meets the statutory requirements for an injury and an accident, and that the accident caused the injury. We hold that the Workers’ Compensation Court did not err in concluding that claimant sustained a compensable injury pursuant to § 39-71-119, MCA (1987).
Affirmed.
JUSTICES HUNT, McDONOUGH, TRIEWEILER and WEBER concur.
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On December 4, 1990, the Defendant was sentenced to twenty (20) years for Criminal Sale of Dangerous Drugs. The defendant received credit for 151 days time served. Said twenty (20) years sentence shall run consecutively to the prior felony sentences that the defendant is presently serving at the Montana State Prison; dangerous designation.
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.
DATED this 23rd day of July, 1993.
The Defendant was present and was represented by Marie A. 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 remain the same as originally imposed, however the Dangerous Designation shall be dropped.
The reason for the decision is: (1) to bring the sentence more in line with the Legislative policy for drug offenses; and (2) the Petitioner’s roommate, Mr. Marcias, received a lesser sentence for a similar crime, a crime that was committed at a similar time; and the sales were made to the same informant.
Hon. G. Todd Baugh, Acting Chairman, Hon. Robert Boyd, 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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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Dr. Norman Green appeals from the findings and conclusions of law entered by the District Court of the Fourth Judicial District, Missoula County, the Honorable Edward T. Dussault presiding, relating to the division of the parties’ assets in conjunction with their dissolution of marriage. The court, sitting without a jury, heard the matter on two nonsuccessive days. On the first, February 7, 1978, a decree of dissolution was entered pursuant to stipulation of the parties; the April 11, 1978, hearing was confined to questions of the property settlement. The court’s findings and conclusions were filed June 23, 1978.
Appellant presents twelve issues for review, many of which are repetitive. Distilled to their essence, they center on the following.
1. Did the District Court equitably apportion the assets of the parties as required by section 48-321, R.C.M.1947, now section 40-4-202 MCA, of Montana’s Uniform Marriage and Divorce Act?
2. Were the findings and conclusions properly made and based on substantial credible evidence?
3. Did the court err in awarding Irene Green maintenance and attorney fees?
4. Did the District Court err in admitting respondent’s Exhibit No. 4, substantially prejudicing appellant thereby?
The parties were married December 5, 1969, at which time respondent Irene Green was a cook at a truck- stop and appellant was, as now, a physician. Both had been married previously, and each had minor children. Each, too, had assets: respondent had the seller’s interest in a contract for deed on real estate hear Lolo, Montana; appellant had $5,000 in a Keough retirement plan, owned an airplane, and owned a building used as a medical clinic in Shaunavon, Saskatchewan, Canada, the substantial loans for which were paid off during the marriage.
At the time of their separation, the District Court found that parties owned the following: the seller’s interest in the contract on the Lolo property, the airplane, the clinic, a house on ten acres on Miller Creek in Missoula, and an interest in Riverside Bar in Hamilton. In addition, Dr. Green had $17,500 in the Keough retirement plan. The parties also had various personal property, which appellant acknowledges was divided evenly. In addition, the parties had debts and liabilities totaling some $127,000.
The District Court divided the property as follows: to Mrs. Green, the seller’s interest in the contract for deed on the Lolo property and the half interest in the Hamilton bar, where she works; to Dr. Green, everything else. It appears that each received property best suited to that individual.
Mrs. Green makes her living from the bar — it makes sense that she receive the parties’ interest in that property. She had acquired the Lolo property contract for deed from her former husband in lieu of monthly support payments for her two children by that prior marriage — it makes sense that she receive that, also.
Dr. Green is the only one of the pair who has a pilot’s license; hence, that he should get the plane is reasonable. He is a physician, who came into the marriage with an interest in the medical clinic; it is reasonable that he keep that property and the attendant share of the income from it. Likewise, it is economically sensible that he keep his Keough retirement plan.
Mrs. Green moved out of the Miller Creek house at the time of separation. Dr. Green continued to live in the home after the separation. It appears reasonable that Dr. Green should be awarded all of the proceeds from the sale of the home. At the time of the separation, the home was worth at least $82,000.
Appellant had to provide $43,000 to retire the debt owing on the half interest in the Riverside Bar, the $4,000 for eight months of maintenance and, perhaps, as will be discussed later, $1,500 for costs and attorney fees. That he assume certain of the debts does not appear inequitable. For example, a sizeable loan had been taken out in Mrs. Green’s name to pay Dr. Green’s arrearages in support owed to his wife and offspring from a prior marriage; that he should assume responsibility for that does not appear inequitable and unreasonable. Unclear from the record is the why and the wherefore of some of the loans. We cannot speculate about them, but absent compelling explanations to the contrary, it does not appear inequitable that Dr. Green, the party earning ap proximately $6,000 per month, as opposed to Mrs. Green, who earns well under $ 1,000 per month, is to discharge the obligations.
The situation is not, as appellant suggests, one of leaving him “with some furniture and an old car,” while the wife is “sitting on the side laughing.” Given the nature of the property to be distributed and with due consideration of the items elaborated in section 48-321, R.C.M.1947, now section 40-4-202 MCA, it appears that the distribution made by the District Court indeed was equitable. It is well settled that “[t]he apportionment made by the District Court will not be disturbed on review unless there has been a clear abuse of discretion as manifested by a substantially inequitable division of the marital assets resulting in substantial injustice.” In re Marriage of Brown (1978), 179 Mont. 417, 587, P.2d 361, 364, citing inter alia, In re Marriage of Blair (1978), 178 Mont. 220, 583 P.2d 403, 405, and Eschenburg v. Eschenburg (1976), 171 Mont. 247, 557 P.2d 1014, 1016.
In the instant case, no clear abuse of discretion is manifest; there has been no substantially inequitable division of the marital assets resulting in substantial injustice to either party. The District Court is affirmed as to the division of the parties’ property.
Considering the second issue, after reviewing the transcript of proceedings, we find that the findings and conclusions are based on substantial credible evidence. It is true that some of the findings of fact are more properly conclusions of law and vice versa, but a mislabeling such as has occurred here will not form the basis for repudiating the determinations of the District Court. Appellant has suffered no substantial injustice as a result of the mislabeling. Such error is harmless and may not be used to defeat the judgment. The District court will not be reversed for harmless error, e. g., Halko v. Anderson (1939), 108 Mont. 588, 593 93 P.2d 956, 959, and the cause will not be remanded in those cases wherein the eventual result must be the same. Green v. Green (1978), 176 Mont. 532, 579 P.2d 1235, 1237.
The third issue concerns the award of maintenance and attorney fees to Mrs. Green. A court may grant maintenance for either spouse only if it finds that the spouse seeking maintenance meets two conditions: (1) he or she lacks sufficient property to provide for his or her reasonable needs; and, (2) is unable to support himself or herself through appropriate employment or is the custodian of a child whose condition or circumstances make it appropriate that the custodial parent not be required to seek employment outside the home. Section 48-322(l)(a), (b), R.C.M. 1947, now section 40-4-203(l)(a), (b) MCA. Furthermore, in making the award, the court is prohibited from considering any marital misconduct of the parties, but must consider the following:
“The financial resources of the party seeking maintenance, including martial 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;
“the time necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment;
“the standard of living established during the marriage;
“the duration of the marriage;
“the age, and the physical and emotional condition of the spouse seeking maintenance; and
“the ability of the spouse from whom maintenance is sought to meet his needs while meeting those of the spouse seeking maintenance.” Section 48-322(2)(a)-(f), R.C.M. 1947, now section 40-4-203(2)(a)-(f) MCA.
In this case, the District Court twice refers to the maintenance award:
“18. the Respondent should pay and the Petitioner is awarded the sum of $500.00 per month for the care and support'of Petitioner beginning June 1, 1977, and through the month of January 1978 for a total sum of $4,000.00.
“3. That Petitioner with no formal education past high school, having no work experience during the marriage of note, suffering from a progressive disabling disease of ulcerative colitis as diagnosed by Respondent, and unable to hold gainful employment greater than several shifts per week as a bartender and shall experience a low and reducing rate of personal income hereafter.”
Based on the latter, a finding mislabeled a conclusion, the District Court had ample foundation for making the short term maintenance award and did so in sufficient compliance with statutory mandate.
Section 48-327, R.C.M. 1947, now section 40-4-110 MCA, states:
“The court from time to time after considering the financial resources of both parties may order a party to pay a reasonable amount for the cost to the other party of maintaining or defending any proceeding under this act and for attorney’s fees including sums for legal services rendered and costs incurred prior to the commencement of the proceeding to after entry of judgment. The court may order that the amount be paid directly to the attorney, who may enforce the order in his name.”
As to the award of attorney’s fees, the District Court found:
“19. That Respondent should pay toward the Petitioner’s attorney fees and the Petitioner is hereby awarded the sum of $1,500.00 as for and towards the Petitioner’s attorney fees and costs in this matter.”
“11. The Respondent should be ordered and is hereby required to pay the sum of $ 1,500,00 towards the Petitioner’s attorney fees and costs of suit incurred.”
The District Court determined that appellant is “a trained, licensed and practicing medical doctor, age 53, without any claimed physical or mental impairment, with earnings of approximately $6,000.00 per month” who “shall continue to have a high rate of personal income.” The record supports these determinations. In contrast, the wife, who had no formal education beyond high school and no significant employment experience during the parties’ marriage, suffers from ulcerative colitis and is unable to hold gainful employment other than working several shifts as a bartender. Her income nowhere approaches that of appellant and, as the District Court found it will gradually diminish as she ages and the disease progresses. Clearly the court considered the financial resources of both parties. Under these circumstances, an award of $1500 toward payment of her attorney fees and costs does not appear so inequitable as to mandate reversal.
We have held, however, that evidence must be introduced to support an award of attorney fees. As stated in State Highway Comm’n v. Marsh (1978), 175 Mont. 460, 575 P.2d 38, 43, “... An award of attorney fees must be based on a hearing allowing for oral testimony, the introduction of exhibits, and an opportunity to cross-examine in which the reasonableness of the attorney fees claimed is demonstrated . . .” As in Marriage of Barron (1978), 177 Mont. 161, 580 P.2d 936, 938.
“We find a lack of evidence that woúld satisfy the requirements of Crncevich v. Georgetown Rec. Corp. (1975), 168 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.”
As in Barron and Hollinger v. McMichael (1978), 177 Mont. 144, 580 P.2d 927, the cause must be remanded to the District Court for an evidentiary hearing on the question of attorney fees.
Finally, appellant complains of error in the admission of respondent’s Exhibit No. 4, used to show the income of the Riverside Bar where respondent was working. Appellant objected to its admission on the grounds (1) that Mrs. Green could testify to the matters contain therein; (2) that he had no opportunity to examine the bookkeeper who prepared it; (3) that it had no relation to the case; and (4) that it was very misleading.
The District Court specifically stated that the exhibit was being admitted only for the purpose of showing the wife’s net income. Immediately prior to its introduction, Irene Green testified twice, without any objection, as to the income she received from the bar during an eight-month period in 1977. Thus, the information was before the court for its consideration even before the introduction of the exhibit.
We need not decide whether there was error in the admission of this exhibit, for even were there error, it was not prejudicial to appellant, affecting his substantial rights so as to be made the basis for reversal. Rule 61, M.R.Civ.P. Harmless error will not be made the basis for reversal, e.g., Halko v. Anderson, 108 Mont. at 593, 93 P.2d at 959. For the District Court to be reversed for improperly admitting evidence, substantial prejudice to the complaining party must be shown. Rule 103, Mont.R.Evid., states that “[e]rror may not be predicated upon a ruling which admits or excludes evidence unless a substantial right of the party is affected.” Appellant has made no showing that a substantial right has been affected to his detriment so as to warrant reversal.
The judgment is affirmed, except as noted above regarding remand to the District Court for an evidentiary hearing on the question of attorney fees and costs.
MR. CHIEF JUSTICE HASWELL and JUSTICES SHEA and SHEEHY concur.
|
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