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On May 18,1992 the Defendant was sentenced to ten (10) years for the revocation of Custodial Interference. The Defendant shall received 257 days credit for time served and will be designated a dangerous offender.
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 Alan Johnson, 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.
The Sentence Review Board considered the entire file and it is implicit that the Defendant was a danger to the juvenile involved.
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 Alan Johnson, Legal Intern from the Montana Defender Project for his assistance to the defendant and to this Court.
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On January 22, 1993, the Defendant was sentenced to Count I, fifteen (15) years for Attempted Sexual Intercourse Without Consent; Count II, fifteen (15) years with five (5) years suspended for Sexual Assault. The sentences shall be served consecutively to each other. The Court recommends the Defendant complete chemical dependency, anger management and sex offender treatment programs before becoming eligible for parole. For parole purposes a dangerous designation is imposed. Credit is given for 157 days time served. Plus conditions as listed in the January 22,1993 Judgment.
On July 23,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and 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. G. Todd Baugh, and Hon. John Warner, Judges
|
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JUSTICE TRIEWEILER
delivered the Opinion of the Court.
Plaintiff Virginia Lawrence brought this claim for restitution from the estate of Jane R. Taylor and Frank M. Taylor in the District Court for the Twenty-first Judicial District in Ravalli County. The District Court concluded that prior to their deaths, Taylors received money belonging to Lawrence as constructive trustees, and that under the equitable theory of unjust enrichment, she was entitled to restitution. The District Court entered judgment in Lawrence’s favor in the amount of $130,816.63, together with prejudgment interest from October 10, 1990. Michael Clepper, personal representative of Taylors’ estates (defendant), appeals. We reverse the judgment of the District Court.
The issues raised by defendant on appeal are:
1. Did the District Court err when it found that Taylors possessed a state of mind which defeated their claim that they were innocent transferees of plaintiff’s property?
2. Is a person who receives property in exchange for an antecedent debt an innocent purchaser for value under Montana law?
FACTUAL BACKGROUND
During April and May of 1990, Frank and Jane Taylor transferred $85,108.63 from Frank’s retirement account, and $37,900 from their personal savings, to Kenneth Holm who held himself out as an investment counselor in California under the business name, Income Financial Advisor.
In the summer of 1990, Mr. Taylor, who was a retired dentist, and Mrs. Taylor moved to Victor, Montana. They bought a home next to Jack Stark, who is an attorney and banker employed at the Farmers State Bank in Victor. However, Mr. Stark first met the Taylors when they made an appointment to see him at the bank on July 30, 1990. On that occasion, they brought with them a document which evidenced the money they had supposedly invested through Holm, and told Stark that they wanted their money back because they had plans to invest it elsewhere. The document that they brought into Stark’s office was not in evidence at trial. However, from his memory, Stark recalled that it documented the amount of money Taylors had invested through Holm and indicated that they were entitled to have it returned to them on the condition that they provide Holm with 30 days’ notice.
During their meeting with Stark on July 30, the three of them composed a letter to Holm in which Taylors requested that their money be returned.
Plaintiff Virginia Lawrence and her husband had invested money through Holm from 1987 through October 10,1990. Mrs. Lawrence’s husband died on April 28, 1990, and left assets in a trust for the purpose of making payments on the couple’s home so that Mrs. Lawrence could continue to reside at that home. However, due to unspecified problems with the administration of the estate, several mortgage payments were missed.
In early September, shortly after 30 days from the time Holm was notified that Taylors wanted their money back, Holm approached Lawrence and suggested that she secure her home with an additional mortgage; that he invest the proceeds from that loan; and that, combined with what she had already invested through him, he would pay her sufficient amounts each month to make her loan payments until the problems with her husband’s estate could be resolved. His explanation was that the second mortgage would be a short term loan which could be paid off once the estate problems were resolved. According to Lawrence’s testimony, she was at first reluctant to do so, but when the problems with her husband’s estate continued, she changed her mind.
Holm made arrangements to obtain a loan for Lawrence from a southern California bank in the amount of $215,000. After payingfees and closing costs, she realized $198,015.50.
When the loan proceeds were distributed to her, Lawrence and Holm went from the bank where the loan was obtained to a second bank where the loan proceeds were converted to a cashier’s check made payable to Holm. She instructed Holm to invest her money in the commodities future market and asked that the investments be backed by treasury bonds. This transfer occurred on October 10,1990.
Officials from Holm’s bank testified that on that same date he deposited $198,015.50 in his account, and that the following day, on October 11, he instructed the bank to wire $91,615.63 to Frank Taylor’s retirement account at a Denver bank, and $39,201 to Frank and Jane Taylor’s personal account at Western Federal Savings Bank in Missoula. Those same officials said that had it not been for the deposit made by Holm on October 10, there would have been no funds in his account with which Holm could have made the wire transfers to Taylors. The wire transfers to Taylors were in satisfaction of the demand letter they had sent to Holm on July 30, 1990.
As part of his arrangement with Lawrence, Holm had agreed to make her mortgage payments for the next 12 months. However, the November mortgage payment was late, and the December payment was first late, and then returned because there were insufficient funds to cover it. When she tried to contact Holm to find out the reason for the late payments, she had difficulty reaching him, and finally consulted an attorney, who attempted to recover the amounts she had invested with Holm, but was unsuccessful. She then consulted a district attorney in California, who advised her that eleven other people had been similarly victimized by Holm. She filed a complaint against him with the Commodities Future Trading Commission and recovered judgment against Holm in the amount of $411,000 on the grounds that Holm obtained money from her by fraud. However, at the time of trial, Holm’s whereabouts were unknown.
Jane and Frank Taylor died on March 30,1991. Michael H. Clepper is the personal representative of their estates.
On December 18,1991, Lawrence filed this complaint in which she contended that the money she paid to Holm on October 10,1990, was obtained by fraud and deception and was illegally transferred to Taylors without her permission. She alleged that Taylors were aware of the source of the funds they received, and therefore, they were unjustly enriched at her expense. For that reason, she alleged that the court should impose a constructive trust for her benefit on the funds obtained by Holm and transferred to Taylors.
In response to Lawrence’s complaint, defendant denied that Taylors had any knowledge that the money which was repaid by Holm was obtained improperly, and as an affirmative defense, alleged that Taylors were bona fide transferees for value.
Both parties moved for summary judgment.
In support of his motion, defendant offered uncontradicted evidence that prior to July 30, 1990, Taylors had invested $123,008.63 with Kenneth Holm, doing business as Income Financial Advisor, and that that amount, together with interest, is what he repaid them on October 11. Based on that evidence, defendant argued that Taylors were transferees for value without knowledge of Holm’s fraudulent activities, and therefore, that Lawrence was not entitled to restitution from them based on the law of constructive trusts.
In turn, Lawrence offered evidence that the money obtained fraudulently from her by Holm was traceable to Taylors. She argued that she was entitled to summary judgment because there was no evidence that Taylors were without notice of Holm’s wrongdoing, and furthermore, that they provided nothing of value to Holm in exchange for the amounts that he returned to them.
The District Court denied both motions for summary judgment based on its conclusion that there was a question of fact regarding the extent of knowledge that Taylors had about the source of the funds which were returned to them, and that neither party had offered sufficient evidence regarding this factual issue.
This case went to trial without a jury before the District Court on October 28, 1992. The only witnesses who testified at trial were Virginia Lawrence and Jack Stark. The testimony of Birdie Risen, a bank official at Holm’s bank in Carlsbad, California, was offered by deposition.
After considering the evidence, the District Court made factual findings and a conclusion of law which are the basis for defendant’s appeal. The District Court found that Taylors went to see an attorney on July 30,1990, because they were anxious and worried about their investments, and that their anxiety, concern, and distrust of Holm continued after they demanded return of their money, as was evidenced by repeated telephone calls to him between the dates of September 10 and October 11,1990.
The District Court also found that Taylors did not consider Holm their debtor and did not give anything of value to Holm in exchange for the money that he transferred to them on October 11. The court finally found, assuming Taylors were creditors of Holm, that the October 11 transfer to them was for an antecedent debt, and therefore, without consideration.
The District Court concluded that, based on Taylors’ apparent anxiety, suspicion, and distrust of Holm, they did not qualify as bona fide purchasers. It also concluded that because nothing of value was provided to Holm in exchange for the money he returned to Taylors, they were not bona fide purchasers for value as a matter of law.
Based on other findings, the District Court impressed a constructive trust on the assets of Taylors’ estates, based on the theory of unjust enrichment, and ordered that the amount paid to them by Holm on October 11 be repaid to Lawrence with interest from the date of October 10, 1990. Defendant moved, pursuant to Rule 59, M.R.Civ.R, for a new trial, or in the alternative, that the District Court amend its findings and conclusions. That motion was denied. Defendant appeals from the judgment entered by the District Court in favor of Lawrence, and from the District Court’s denial of his post-trial motion.
The bases for defendant’s appeal are that the District Court’s findings regarding Taylors’ state of mind are unsupported by evidence, and therefore, clearly erroneous, and that the District Court erred as a matter of law when it concluded that Taylors could not be innocent transferees for value because no consideration was paid to Holm for the money that he transferred to them.
DISCUSSION
We have long recognized in Montana that in transactions between two parties, the principles of equity sometimes mandate the imposition of involuntary trusts. In Eckart v. Hubbard (1979), 184 Mont. 320, 325, 602 P.2d 988, 991, we recognized that:
Involuntary trusts may be created, for example, when a court implies or presumes an intent to create a trust or simply declares, employing the principles of equity, that the trust shall be said to exist. Nothing else is required.
Based upon the statutory scheme that was in effect at that time, we held that:
Constructive trusts spring from fraud, mistake, undue influence, the violation of a trust, or other wrongful acts. Platts [v. Platts], [134 Mont. 474, 480, 334 P.2d 722, 727], Constructive trusts occur where the parties have expressed no intent to create a trust, nor does the court presume that any intent existed. Rather, the court creates the trust to work an equitable result. Bogert [on Trusts, 5th ed.], § 71, p. 263.
Eckart, 602 P.2d at 991.
In 1989, Montana enacted a new trust code found at Chapters 33-36 of Title 72 of the Montana Code Annotated. Section 72-33-219, MCA, of that code provides for “constructive trusts” under the following circumstances:
A constructive trust arises when a person holding title to property is subject to an equitable duty to convey it to another on the ground that the person holding title would be unjustly enriched if he were permitted to retain it.
In Montana, therefore, the equitable creation of a constructive trust is dependent upon, and related to, the equitable principle of unjust enrichment. The creation of a constructive trust need not be limited to the person who obtained property by fraud or deception from another. If that property is transferred by the wrongdoer to a third party who would be unjustly enriched if he or she was allowed to keep it, a constructive trust can be created to prevent such unjust enrichment. The notion of unjust enrichment of a third party usually involves the issue of notice to that party regarding the manner in which the property was originally acquired such that allowing the third party to keep the property would be inequitable or unjust.
The phrase “unjust enrichment” is used in law to characterize the result or effect of a failure to make restitution of, or for, property or benefits received under such circumstances as to give rise to a legal or equitable obligation to account therefore. It is a general principle, underlying various legal doctrines and remedies, that one person should not be permitted unjustly to enrich himself at the expense of another, but should be required to make restitution of or for property or benefits received, retained, or appropriated, where it is just and equitable that such restitution be made, and where such action involves no violation or frustration of law or opposition to public policy, either directly or indirectly.
... However, although unjust enrichment is often referred to or regarded as a ground for restitution, it is perhaps more accurate to regard it as a prerequisite, for usually there can be no restitution without unjust enrichment. It is defined as the unjust retention of a benefit to the loss of another, or the retention of money or property of another against the fundamental principles of justice or equity and good conscience. A person is enriched if he has received a benefit, and he is unjustly enriched if retention of the benefit would be unjust. Unjust enrichment of a person occurs when he has and retains money or benefits which in justice and equity belong to another.
... It is said to be fundamental that for a person to be entitled to restitution, he must show not only that there was unjust enrich ment, but also that the person sought to be charged had wrongfully secured a benefit, or had passively received one which it would be unconscionable for him to retain.
66 Am. Jur. 2d Restitution and Implied Contracts §§ 3-4 (1973).
For these reasons, courts of equity have not allowed restitution from third parties who came into possession of another’s property innocently, even though that property was originally obtained by fraud or mistake. Therefore, Restatement of the Law of Restitution, § 13 (1937) provides that:
A person who has entered into a transaction with another under such circumstances that, because of a mistake, he would be entitled to restitution from the other,
(a) is not entitled to restitution from a third person who has received title to or a legal interest in the subject matter either from the other or from the transferor at the direction of the other, and has given value therefor without notice of the circumstances ....
Comment a to § 13 makes clear that the same principle applies to property obtained by fraud.
Section 172 of Restatement of the Law of Restitution discusses the situation of innocent third-party transferees where, as here, the issue is the imposition of a constructive trust. That section provides:
(1) Where a person acquires title to property under such circumstances that otherwise he would hold it upon a constructive trust or subject to an equitable lien, he does not so hold it if he gives value for the property without notice of such circumstances.
(2) In the Restatement of this Subject such a transferee is called a bona fide purchaser.
The reason for the rule established by § 172 is illustrated in Comment a to the same section where it states that:
The principle that a person who innocently has acquired the title to property for which he has paid value is under no duty to restore it to one who would be entitled to reclaim it if he had not been innocent or had not paid value therefor, is of wide application, being a limitation upon the principle that a person who has been wrongfully deprived of his property is entitled to restitution. The question in such cases is which of two innocent persons should suffer a loss which must be borne by one of them. The principle which is applied by courts of equity is that they will not throw the loss upon a person who has innocently acquired title to property for value. The bona fide purchaser is not only entitled to retain the property free of trust, but he is under no personal liability for its value.
This principle is most frequently applied to the situation where a person holds property subject to a constructive trust and transfers it to a person who pays value without notice of the facts which gave rise to the constructive trust; in which case a constructive trust is cut off. The situation arises, for example, where a person obtains property by fraud and transfers the property to a person who pays value without notice of the fraud. [Emphasis added].
Restatement of the Law of Restitution, § 172, Comment a (1937). With that background, we address the issues raised on appeal.
I.
Did the District Court err when it found that Taylors possessed a state of mind which defeated their claim that they were innocent transferees of plaintiff’s property?
It is undisputed that Holm obtained Lawrence’s money by fraud. Under that circumstance, he held the money, subject to a constructive trust, for Lawrence’s benefit. If the property, however, was transferred to Taylors for value, and if they had no notice of the circumstances which gave rise to the trust, the trust is cut off. This first issue relates to whether there was evidence from which the District Court could find that Taylors had notice of Holm’s conduct which gave rise to the trust.
The District Court made no specific finding that Taylors had notice of Holm’s fraudulent conduct. Instead, the District Court simply found that Taylors were anxious about their investment and were suspicious and distrustful of Holm. From those findings, the District Court concluded that they did not possess a state of mind which would qualify them as innocent transferees.
It is correct that if Taylors were aware of facts which should have caused further investigation, and if that investigation would have led to knowledge of Holm’s conduct, then they are charged with notice. Section 174 of Restatement of the Law of Restitution provides that “[e]xcept in the case of the holder of a negotiable instrument, a person has notice of facts giving rise to a constructive trust if he knows the facts or should know them.” (Emphasis added).
It was presumably the District Court’s conclusion that based on Taylors’ mistrust of Holm and the temporary difficulty they had obtaining their money, they should have known that the money was obtained by inappropriate means.
On appeal, defendant argues that there is no need to decide whether distrust or anxiety equates with notice because there was no evidence that Taylors were anxious or distrustful of Holm.
Lawrence, on the other hand, responds that the District Court’s findings in that regard were supported by substantial evidence, and offers the following examples:
1. Taylors’ attorney, Stark, distrusted Holm;
2. During a telephone conversation between Holm and Mrs. Taylor, Holm asked if she did not trust him;
3. Taylors made numerous telephone calls to Holm during the month prior to the return of their money;
4. The mere fact that Taylors sought the return of their money several months after investing it with Holm, suggests that they did not trust him.
Because of the trial court’s unique opportunity to resolve issues of fact, we will defer to a District Court’s findings unless they are clearly erroneous. However, findings which are not supported by substantial credible evidence are clearly erroneous. Interstate Production Credit Association v. DeSaye (1991), 250 Mont. 320, 820 P.2d 1285.
In this case, defendant’s contention that Taylors were innocent transferees was an affirmative defense pursuant to Rule 8(c), M.R.Civ.P., and defendant, therefore, had the burden of producing evidence in support of that defense. Section 26-1-401, MCA. That burden was made difficult by the fact that by the time of trial both of the Taylors were deceased. However, in meeting that burden, defendant had a right to rely on relevant statutory presumptions.
Section 26-1-602, MCA, sets forth a number of disputable presumptions. It provides that:
All other presumptions are “disputable presumptions” and may be controverted by other evidence. The following are of that kind:
(7) Money paid by one to another was due the latter.
(19) Private transactions have been fair and regular.
These statutory presumptions satisfied defendant’s burden of proof in support of its affirmative defense, and are conclusive unless controverted by other evidence.
As pointed out previously, the only witnesses who testified in this case were Lawrence, an official from Holm’s bank in California, and Jack Stark, Taylors’ attorney. Neither Birdie Risen, the bank official, nor Lawrence, had ever met Taylors, and neither offered any testimony about the extent of Taylors’ knowledge of Holm’s activities.
Neither did Stark, who assisted Taylors in their effort to obtain the return of their money and saw them occasionally as neighbors, offer any evidence to indicate that they had notice of Holm’s activity or a reason to further investigate his activity. In fact, he testified that Taylors never expressed frustration with Holm, nor did he get the impression that they were frustrated with him. Although he personally harbored some suspicion of Holm based on his experience as a banker, he did not express that suspicion to Taylors, and in fact, testified that his suspicion was lessened when he learned that Holm had previously returned $60,000 to Taylors’ bank which had been mistakenly sent to Holm.
Stark testified that if Taylors had reasons for seeking the return of their money from Holm, other than a preference to put it into local investments, he was unaware of those reasons. Although Holm did call Mrs. Taylor after receiving the letter that was sent on July 30, and did question whether they trusted him, Stark made it clear that it was Holm who raised the issue of trust and that it was never mentioned by Mr. or Mrs. Taylor.
In fact, Stark testified that after sending the July 30 letter requesting return of Taylors’ money, the subject of its return did not come up again in his conversations with his neighbors until sometime in November, when out of curiosity, he inquired about the money and was advised by Taylors that they had received it. However, at no time did they indicate to him that they were relieved at the return of their investment.
Stark testified that after his initial meeting with Taylors in his office, and after the letter was sent that was produced at that meeting, Taylors did not seek any further advice from him about the return of their money, and during none of his informal conversations with Taylors after that date did they express any concern to him about their transactions with Holm.
In summary, Stark testified that at no time during any of his conversations with Taylors about Holm was the term or subject of distrust ever mentioned.
It is true that findings of fact can be based on reasonable inferences. However,
[a]n inference must be founded:
(1) on a fact legally proved; and
(2) on such a deduction from that fact as is warranted by a consideration of the usual propensities or passions of men, the particular propensities or passions of the person whose act is in question, the course of business, or the course of nature.
Section 26-1-502, MCA.
In its findings, the District Court found that Taylors were anxious, suspicious, and distrustful from the fact that their attorney had an initial distrust of Holm, and from the fact that Holm raised the issue of trust when Taylors requested the return of their money. The District Court also found distrust based on numerous telephone calls from Taylors to Holm during the period of time that they were attempting to secure the return of their money. However, most of these telephone calls lasted for no more than one minute, the longest was for five minutes, and there is no record of what was discussed, or whether Holm was even reached during these telephone calls. Furthermore, Stark’s distrust of Holm is irrelevant if it was not communicated to Taylors.
Based on our review of the record, we conclude that the inferences relied on by the District Court do not amount to substantial evidence that Taylors had notice of Holm’s fraudulent activity, or reason to suspect that the money he returned to them was obtained by fraudulent activity. Therefore, we conclude that the District Court erred when it found that Taylors did not possess a state of mind which qualified them as innocent transferees of Lawrence’s property.
II.
Is a person who receives property in exchange for an antecedent debt an innocent purchaser for value under Montana law?
The District Court concluded that Taylors could not be innocent transferees for value because, at most, they established an antecedent debt which did not constitute “value.” On appeal, defendant contends, based on Restatement of the Law of Restitution, that an antecedent debt is sufficient to establish “value,” and that that rule should be adopted in Montana. Lawrence contends that our prior decisions regarding bona fide purchasers require the exchange of new consideration in order to establish “value.”
Our standard for reviewing legal conclusions of a District Court is to determine whether they are correct. In re Marriage of Burris (1993), 258 Mont. 265, 269, 852 P.2d 616, 619, 50 St. Rep. 525, 526.
Lawrence cites our early decision in Montana Electric Company v. Northern Valley Mining Company (1915), 51 Mont. 266, 153 P. 1017, for the proposition that to establish bona fide purchaser status “new” consideration is required. It is true that in Montana Electric Company, 153 P. at 1018, we set forth the rule as follows:
A bona fide purchaser is defined to be “one who at the time of his purchase advances a new consideration, surrenders some security, or does some other act which leaves him in a worse position if his purchase should be set aside, and purchases in the honest belief that his vendor had a right to sell, without notice, actual or constructive, of any adverse rights, claims, interest, or equities of others in and to the property sold.” [Citation omitted].
However, it is important to observe that in that case the nature of consideration provided was not the issue. The above rule was simply set forth without analysis or further discussion regarding its merits.
Defendant, on the other hand, suggests that we adopt § 173 from Restatement of the Law of Restitution, which defines “value” as follows:
(2) Except in the case of a transfer by an express trustee, a transfer of property other than an interest in land in satisfaction of or as security for a pre-existing debt or other obligation is a transfer for value.
In this case, defendant contends that Holm had a prior obligation to repay the money that was invested with him upon 30 days’ notice of Taylors’ request that he do so, and therefore, when he repaid that amount the antecedent obligation satisfied the requirement that the transfer be for “value.”
We conclude that the definition of “value” set forth in Restatement of the Law of Restitution § 173 (1937) is more consistent with the equitable purpose of the “innocent transferee” defense, and therefore, adopt that rule in this and in future cases which involve issues of constructive trusts and innocent transferees.
The question in cases such as this is which of two innocent persons “should suffer a loss which must be borne by one of them.” That is the issue which the “bona fide purchaser” defense was established to address. We conclude that a purchaser is no less innocent and that his or her loss would be no less significant if the property they acquired was in exchange for a previous obligation or debt than if the property was acquired in exchange for new consideration. The net effect or damage to the innocent purchaser or transferee is the same. Therefore, under equity, the result must be the same.
For these reasons, we conclude that the District Court erred when it held that Taylors had not provided “value” to Holm in exchange for the money that he wired to them.
Based on our conclusion that there is no evidence in this record that Taylors had notice of any wrongful conduct on the part of Holm, and that the money they received from him was transferred for “value,” we conclude that the judgment of the District Court must be reversed.
This case is remanded to the District Court for entry of judgment for defendant.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, HUNT, GRAY, NELSON and WEBER concur.
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On April 5, 1993 the Defendant was sentenced to Count I, ten (10) years for Burglary; Count II, ten (10) years for Theft. Said sentence shall run concurrently with each other. It is the recommendation of the Court that the Defendant shall serve his sentence at the Swan River Youth Camp. Credit is given for 107 days time served, plus other conditions as stated in the April 5,1993 Judgment.
On July 23,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Corut.
The Defendant was present and represented himself. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence is affirmed as originally imposed. The Sentence Review Board notes that the sentencing judge recommended that the Defendant he placed at the Swan River Youth Forest Camp. Since that program is no longer in existence, the Board recommends that the Defendant be considered for placement in the Swan River Correctional Training Center.
DATED this 23rd day of July, 1993.
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
|
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MR. JUSTICE McDONOUGH
delivered the Opinion of the Court.
Plaintiffs William and Kimberly Koppen (Koppens) and Alan and Susan Buck (Bucks) appeal from the order of the District Court of the Eleventh Judicial District, Flathead County, dismissing their complaint against defendants Board of Medical Examiners (Board) and State of Montana. We affirm.
The appellants present one issue on appeal:
“Does Section 2-9-112, M.C.A., which provides for judicial immunity, extend to executive agencies, such as the Montana Board of Medical Examiners, for negligent failure to perform their statutory duties?”
Plaintiffs Kimberly Koppen and Susan Buck both became pregnant during the summer of 1983 and contracted with Dr. David V. Kauffman for assistance with the delivery of their babies, expected during March of 1984. The baby born to the Koppens died after a short period of survival. The baby born to the Bucks died at the age of 8V2 months.
The Koppens and the Bucks filed suit against the Board and the State on February 18, 1987, alleging the Board was negligent in failing to limit or revoke Dr. Kaufman’s license to practice medicine, or otherwise prevent him from practicing obstetrics. According to the complaint, the Board had received complaints about Dr. Kaufman’s fitness to practice medicine but failed to respond to them. The complaint characterized this as a failure by the Board to discharge its duty under Section 37-3-202, MCA, to ensure that all physicians li censed in Montana maintain standards of conduct in the greatest public interest. The complaint alleged that because of the Board’s failure, Dr. Kauffman’s treatment was below the level of care and skill required of physicians in Montana, which caused avoidable complications in the two pregnancies and resulted in the deaths of both infants.
On April 1, 1987, the Board and the State filed a motion to dismiss based on the contention that the Board performs a quasi-judicial function, thereby entitling both defendants to absolute immunity from suit. The District Court granted the motion by its order of September 28, 1987, and thereafter entered judgment in favor of the Board and the State.
The rationale in the District Court’s Order began by quoting portions of Section 2-9-112, MCA:
“(1) The State and other governmental units are immune from suit for acts or omissions of the judiciary.
“(2) ...
“(3) The Judiciary includes those courts established in accordance with Article VII of the Constitution of the State of Montana.”
The court pointed out that the term “includes” in subparagraph 3 of the statute is not a “limiting term.” According to the court, if the legislature had wanted to limit the immunity, it could have drafted the provision to mean specifically only those courts established under Article VII. Because the word used was “includes,” the court determined that the legislature’s grant of immunity extended to administrative agencies exercising “quasi-judicial” authority.
The court cited Butz v. Economou, 438 U.S. 478, 98 S.Ct. 2894, 57 L.Ed.2d (1978), as stating the correct rationale for quasi-judicial immunity. In Butz, the U.S. Supreme Court began its analysis of quasi-judicial immunity by stating the rationale for judicial immunity:
“ [Controversies sufficiently intense to erupt in litigation are not easily capped by a judicial decree. The loser in one forum will frequently seek another, charging the participants in the first with unconstitutional animus, [citation omitted.] Absolute immunity is thus necessary to assure that judges, advocates, and witnesses can perform their respective functions without harassment or intimidation.”
Butz, 98 S.Ct. at 2913. The court then examined the nature of administrative proceedings and the controversies involved, and concluded:
“We think that adjudication within a federal administrative agency shares enough of the characteristics of the judicial process that those who participate in such adjudication should also be immune from suits for damages.”
Butz, 98 S.Ct. at 2914. In this case, the District Court applied the rule in Butz to the Board, a state administrative agency, and concluded that the Board’s adjudicatory function would warrant quasi-judicial immunity, which the court found to be afforded by Section 2-9-112, MCA.
The appellants argue that the District Court’s reading of Section 2-9-112, MCA, is too liberal. Appellants’ brief outlines general rules of statutory construction stating that any statute in derogation of rights otherwise guaranteed by a constitution must be strictly construed. The right involved in this case, according to appellants, is the right to sue state government entities in tort, which they assert is conferred by Article II, Section 18 of the Montana Constitution:
“The state, counties, cities, towns, and all other local governmental entities, 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.”
Appellants argue that the grant of judicial immunity in Section 2-9-112, MCA, is in derogation of this right, and must therefore be construed strictly. The brief notes that the Board is an executive agency created pursuant to Article VI of the constitution rather than Article VII, which in appellants’ view places the Board outside the scope of the judicial immunity found in Section 2-9-112, MCA. The conclusion drawn from this by appellants is that they have the right to sue the Board and the State for negligence, and the District Court was in error when it dismissed their suit.
The decision of the District Court was rendered on a motion to dismiss. The judge sat without a jury, no testimony was taken and the facts are relatively uncontested. In cases such as this, our scope of review is much broader, and we are free to make our own examination of the entire case and make a determination in accordance with our findings. Shimsky v. Valley Credit Union (1984), 208 Mont. 186, 189-90, 676 P.2d 1308, 1310. However, we will affirm the result reached by the District Court if it is correct, even if the reasons given for that result are incorrect. Shimsky, 676 P.2d at 1310.
The District Court was correct in concluding that the Board is entitled to quasi-judicial immunity from suit. However, we do not need to read Section 2-9-112, MCA, as providing for quasi-judicial immunity. The Board’s quasi-judicial immunity is derived from the common law, which we hold to be controlling here.
Article II, Section 18 of the Montana Constitution abolished sovereign immunity in Montana. The Bill of Rights Committee of the 1972 Constitutional Convention stated in its Comments accompanying the proposed text of Section 18 that its purpose was to abolish “the archaic doctrine of sovereign immunity.” 2 Mt. Leg. Council, Montana Constitutional Convention, 1971-72, 637. In reporting Section 18 to the full convention for approval, Delegate Murray of the Bill of Rights Committee stated, “We feel that the doctrine of sovereign immunity, which we are attempting to do away with by this particular provision, really means that the king can do whatever he wants but he doesn’t have to pay for it; and we’d like to do away with that doctrine.” 5 Mt. Leg. Council, Montana Constitutional Convention, 1971-72, 1760. This Court duly recognized the demise of sovereign immunity when the question first came before us in Noll v. City of Bozeman (1975), 166 Mont. 504, 534 P.2d 880.
However, sovereign immunity is not at issue here. We are instead dealing with the doctrine of quasi-judicial immunity. As we have previously held, there were and are immunities separate and distinct from sovereign immunity, unaffected by the language of Article II, Section 18. As a particularly relevant example, in State ex rel. Dept. of Justice v. District Court (1977), 172 Mont. 88, 560 P.2d 1328, and more recently in Ronek v. Gallatin County (Mont. 1987), [227 Mont. 514,] 740 P.2d 1115, 44 St.Rep. 1275, this Court held that Article II, Section 18 did not abolish the common-law doctrine of prosecutorial immunity.
As with prosecutorial immunity, quasi-judicial immunity is not a subject of Montana statutory law. Section 1-1-108, MCA, provides where the law Is not declared by statute, the common law shall be the rule of a decision. The common law rule of quasi-judicial immunity was reviewed by the U.S. Supreme Court in the Butz decision, which in turn was cited by the District Court. The opinion in Butz squarely addressed the issue raised by appellants that executive officials or agencies are not judicial bodies and should not be immunized as such. Expanding on its statement quoted above that administrative adjudications have enough in common with judicial process to warrant immunity, the U.S. Supreme Court said,
“Judges have absolute immunity not because of their particular location within the Government but because of the special nature of their responsibilities. This point is underlined by the fact that pros ecutors — themselves members of the Executive Branch — are also absolutely immune.
“We also believe that agency officials performing certain functions analogous to those of a prosecutor should be able to claim absolute immunity with respect to such acts. The decision to initiate administrative proceedings against an individual or corporation is very much like the prosecutor’s decision to initiate or move forward with a criminal prosecution.
“The discretion which executive officials exercise with respect to the initiation of administrative proceedings might be distorted if their immunity from damages arising from that decision was less than complete.”
Butz, 98 S.Ct. at 2913, 2915. The Butz court thus characterized quasi-judicial immunity as the logical descendant of prosecutorial immunity, which this Court recognized in Dept. of Justice and Ronek. Both are founded upon the nature of the functions carried out by agencies or officials. See Ronek, 740 P.2d at 1116.
The discretion vested in the Board to weigh the information relative to Dr. Kauffman rendered it a quasi-judicial body. This is also evident from the statutes dictating the procedures to be followed. The Board cannot revoke or suspend a license to practice medicine without giving notice and opportunity for hearing, a hearing at which the doctor concerned may be represented by counsel and offer evidence. Section 37-3-323, MCA. Such a hearing is governed by the Montana Administrative Procedure Act, and the decision reached is subject to judicial review. Sections 2-4-702 and 2-4-631, MCA. The task performed by the Board thus comes within the statutory definition of “quasi-judicial function” found at Section 2-15-102(10), MCA.
The action or inaction by the Board under attack in this case is its decision not to strip Dr. Kauffman of his license when faced with complaints concerning his professional conduct. The Board’s decision whether to initiate administrative proceedings against a doctor is analogous to a prosecutor’s decision whether to initiate court proceedings against an alleged criminal. We concur with the reasoning in Butz that the Board’s discretion might be distorted if it is not immune from suit for damages arising from such a decision. We hold, therefore, that in the exercise of its quasi-judicial authority, the Board is entitled to the absolute immunity afforded executive officials under the rule in the Butz decision. We also hold that the quasi-judicial immunity afforded the Board must encompass the State. The Board’s discretion would be equally subject to distortion by considerations of possible litigation against the State arising from its actions. See Ronek, 740 P.2d at 1116-17; Dept. of Justice, 560 P.2d at 1330.
The opinions in Ronek, Dept. of Justice and Butz stand for the proposition that entities called upon to function judicially should be immunized in order to facilitate the proper execution of their duties. However, the basis for these decisions, as discussed above, is the common law. We affirm the decision of the District Court.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, WEBER and GULBRANDSON concur.
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JUSTICE HUNT
delivered the Opinion of the Court.
Appellant Scott Muir appeals from a jury verdict in the Tenth Judicial District Court, Fergus County, finding him guilty of sexual intercourse without consent.
We affirm.
The sole issue is whether the District Court erred when it denied appellant access to the victim’s treatment counselor and the counselor’s records.
On July 6,1992, appellant was charged by information with sexual intercourse without consent, in violation of § 45-5-503(1), MCA. The State further based the charges on § 45-5-501(l)(b)(iii), MCA, that the victim could not consent to the act because she was 14 years of age when the offense occurred. Appellant was 19 years of age.
One evening in September or October 1990, the victim and a 16-year-old friend, B.L., were drinking alcohol and cruising the streets of Lewistown. At midnight, they picked up another friend, N.R., from her job at the Dairy Queen, and then stopped at the Circle K store where they saw appellant with a friend.
Appellant and his friend were on their way to the friend’s home in Forest Grove, a community approximately 25 miles from Lewistown. B.L. and N.R. both knew appellant and his friend and talked to them. The victim had never met either appellant or his friend. B.L. testified that the victim was intoxicated when they were all at the Circle K store. The victim approached appellant and his friend and was touching and flirting with them. Appellant and his friend agreed to follow the girls to the Dairy Queen where they would drop off N.R. Appellant, his friend, B.L., and the victim then rode in the friend’s pickup to the friend’s house.
The victim sat next to appellant as he drove the pickup and continued to be sexually aggressive toward him. B.L. commented to appellant that the victim was not usually that aggressive, but that she was just drunk. Appellant testified that sometime during the drive, the victim told him she was 17. Upon arriving in Forest Grove, appellant and the victim started walking down the road. B.L. testified that as they were leaving, she told appellant “not to do anything,” and that the victim was only 14 years old.
Appellant and the victim walked behind a large round hay bale in a nearby field and had sexual intercourse. They returned to the pickup and the four of them drove back to Lewistown, where the victim spent the night at B.L.’s home.
In March 1991, the victim was admitted to the Yellowstone Youth Treatment Center for an alcohol abuse problem. While in treatment, she spoke with her treatment counselor about the incident, who subsequently informed the victim’s mother. On April 22, 1991, the victim’s mother filed a complaint with the Fergus County Sheriff’s Department, but because of the victim’s emotional state, an investigation was delayed. In April 1992, Deputy Rolf Danzer investigated the complaint by speaking with the victim, her mother, and her counselor. Deputy Danzer then questioned appellant, and appellant gave him a written statement which documented that he did have sexual intercourse with the victim, and that he knew she was 14 years old when the act occurred.
On July 6,1992, the appellant was charged with sexual intercourse without consent. Appellant pled not guilty, and at trial presented testimony that he reasonably believed the victim was 17 years old when the act occurred.
Appellant was found guilty by a jury on September 1, 1992, and was sentenced to a term of 10 years at the Montana State Prison. He was also required to successfully complete the sex offender program at the prison prior to his release.
Did the District Court err when it denied appellant access to the victim’s treatment counselor and the counselor’s records?
Appellant contends that the State deliberately withheld information from him which it had access to and used in its investigation of the case. Prior to trial, appellant requested by motion the right to interview the counselor at the Yellowstone Youth Treatment Center and gain access to her written records because she was listed on the information as a potential witness. The State contends that appellant received the same investigative records that it used to prepare its case in chief, and that the treatment records were privileged as communications between a psychologist and a client.
The court denied appellant’s motion pending its review, and directed the State provide the court with the records. Later, the State informed the court of its attempts to secure the records from the Yellowstone Youth Treatment Center, but reported that it was able to obtain only one report which it submitted to the court.
The court viewed the report in camera and denied appellant access to the report stating that it found no exculpatory evidence that was relevant to the issues. The court further denied appellant the right to interview the counselor because the counselor was not called as a witness at the trial. The court directed the State to continue its efforts to determine if there were more records from the treatment center that may contain exculpatory evidence.
While § 46-15-322, MCA, requires the State to provide all pertinent information within its possession or control, “the statutes have no effect until the State actually develops the knowledge of a specific act, fact or information that exculpates the defendant.” State v. Shaver (1988), 233 Mont. 438, 447, 760 P.2d 1230, 1235.
This Court recently upheld a trial court’s decision to deny a defendant access to a victim’s counselor’s information because the State did not possess the information, nor did the State use the information to prepare its case. State v. Little (1993), [260 Mont. 460], 861 P.2d 154, 50 St. Rep. 86. In Little, a defendant charged with sexual intercourse without consent, requested the victim’s counselor’s notes asserting that they might contain exculpatory information. The District Court found that the defendant was not entitled to discovery of the notes because the State did not possess the notes, did not use the counselor’s notes or opinions to prepare its case, and did not intend to call the counselor as a witness. Little, 861 P.2d at 159. See also, State v. Rhyne (1992), 253 Mont. 513, 833 P.2d 1112.
In the present case, the State reported to the District Court that no written reports were submitted by the counselor to the sheriff’s investigator. The sheriff’s investigator interviewed the victim’s counselor, the victim, and her mother. The details of these interviews were in the investigator’s report, which was provided to both the State and appellant. The State informed the District Court that it gave appellant all the information it had received from the investigative officer. The State did not view the counselor’s records, use them to prepare its case, or call the counselor as a witness. We hold that appellant failed to show that the State deliberately withheld information from him which it had access to and used in its investigation of the case.
Next, appellant contends that the District Court erred by denying him access to the victim’s counselor and her treatment records, thereby denying his right to confront witnesses and compel testimony.
The Montana Rules of Evidence allow the trial court to refuse evidence by first testing the relevance of the evidence, and then determining whether the evidence should be excluded by a provision of law. Rule 402, M.R.Evid. Rulings on the admissibility of evidence are left to the sound discretion of the trial court. State v. Mayes (1992), 251 Mont. 358, 373, 825 P.2d 1196, 1205. On appeal, this Court will not disturb such a ruling absent abuse of discretion. Mayes, 825 P.2d at 1205.
Appellant requested access to the counselor’s records several times throughout the proceedings and for several purposes. Appellant requested the right to review the counselor’s records for information with which to impeach the victim’s mother concerning the victim’s alcohol abuse, and to scan for potential witnesses for the defense. At the sentencing hearing, appellant again requested access to the victim’s treatment records to rebut the State’s assertion that all of the victim’s emotional problems resulted from appellant’s actions.
The District Court denied appellant’s requests, stating that the sexual intercourse without consent charge was grounded upon § 45-5-501(l)(b)(iii), MCA, that the victim was under the age of 16 when the alleged offense occurred and she could not give her consent. The court reasoned that no connection had been established between the incident and the victim’s alcohol abuse and emotional problems, and therefore, found the issue of the victim’s character and alcohol abuse irrelevant to these charges. Further, the court reasoned that its sentence and judgment were not based on the contents of the treatment records, but instead upon evidence submitted at trial, and that witnesses’ testimony concerning the victim’s emotional history and alcohol abuse contained the same information as did the counselor’s treatment records.
Montana protects confidential information between a psychologist and a client from disclosure. Section 26-1-807, MCA. In State v. Reynolds (1990), 243 Mont. 1, 8, 792 P.2d 1111, 1115, this Court held that the district court properly denied the defendant’s motion to obtain all medical and psychiatric records of a sexual assault victim. There, we cited the privilege stated in § 26-1-807, MCA, and our holding in State v. Thiel (1989), 236 Mont. 63, 66, 768 P.2d 343, 345.
In Reynolds, 792 P.2d at 1115, this Court reasoned that a defendant’s right to confront his accusers in pretrial discovery is not equivalent to the constitutional right of confrontation. Rather, confrontation is a trial right that guarantees an opportunity for effective cross-examination. A right to question adverse witnesses does not include the power to require the pretrial disclosure of any and all information that might be useful in contradicting unfavorable testimony. Reynolds, 792 P.2d at 1115 (citing Pennsylvania v. Ritchie (1987), 480 U.S. 39, 53, 107 S. Ct. 989, 999, 94 L. Ed. 2d 40, 54). This Court has held that an in camera inspection by the trial court pursuant to § 41-3-205(2), MCA, suffices to protect the confrontation rights of a defendant, and to protect the privacy rights of a victim. State v. Donnelly (1990), 244 Mont. 371, 376, 798 P.2d 89, 92 (overruled on other grounds in State v. Imlay (1991), 249 Mont. 82, 813 P.2d 979).
In the present case, the District Court properly examined the report in camera to determine whether exculpatory evidence was present. The court found the counselor’s report involved privileged information involving the victim’s psychological history and treatment. At trial, the appellant had opportunity to cross-examine all adverse witnesses, including his accuser, the victim. Throughout the entire trial and sentencing, appellant attempted to gain access to information concerning the victim’s alcohol and emotional problems after the incident. The court denied access, reasoning that no correlation to the information was provided at trial. The court seemingly addressed the correlation between the victim’s past emotional problems and alcohol abuse, and her consent at the time of the incident. The court also considered that the State did not establish a correlation at trial between the trauma of the incident and the victim’s current emotional problems. We agree with the court when it found that the victim’s historic emotional problems and current emotional state were irrelevant to the issue of whether appellant was guilty of sexual intercourse without consent. We hold that the District Court did not abuse its discretion when it denied appellant access to the victim’s counselor or the treatment records.
Appellant also contends that without the requested treatment records he was denied access to potential information to build the defense that he reasonably believed the victim was 17 years old.
Section 45-5-511(1), MCA, provides that:
When criminality depends on the victim being less than 16 years old, it is a defense for the offender to prove that he reasonably believed the child to be above that age. Such belief shall not be deemed reasonable if the child is less than 14 years old.
At trial, appellant offered evidence that he reasonably believed the victim was 17 years old. The State submitted evidence that appellant was aware the victim was 14 years old. The court instructed the jury on § 45-5-511(1), MCA, and the jury was not persuaded by appellant’s evidence.
Further, the jury was instructed that the State must prove that appellant had sexual intercourse with the victim, and that the victim was 14 years old at the time of the offense. The State proved its case.
We hold that the District Court did not err in denying the appellant access to the victim’s counselor or the counselor’s treatment records.
We affirm.
CHIEF JUSTICE TURNAGE, JUSTICES TRIEWEILER, NELSON and WEBER concur.
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MR. JUSTICE WEBER
delivered the Opinion of the Court.
The defendant, Carl E. Johnson, appeals his conviction and sentence entered by the District Court of the Eighth Judicial District, Cascade County. The jury found Mr. Johnson guilty of aggravated kidnapping, felony assault, sexual intercourse without consent, and aggravated burglary. He was sentenced to life imprisonment without possibility for parole, and received a total of 130 years to run consecutively, plus an additional 100 years as a persistent felony offender. We affirm the conviction.
The single issue for our consideration is whether the burden of proof was impermissibly shifted to the defendant by the denial of defendant’s motion for a mistrial following the comments of the deputy county attorney during closing argument.
The uncontradicted testimony of Holly Shippers established that on January 4, 1987, she was awakened at approximately 4 a.m. She heard the striking of a match. When she turned on the light she discovered Mr. Johnson standing in the doorway of her bedroom. After Ms. Shippers screamed, the defendant jumped on top of her, held a knife to her throat, and told her to shut up. The testimony of Ms. Shippers established that the defendant then committed rape upon her by forcing her to engage in oral sex and sexual intercourse. The defendant then forced Ms. Shippers into her own automobile and drove her to his own apartment. Over the course of the next several hours, the defendant again repeatedly raped Ms. Shippers by forcing her to engage in sexual intercourse and oral sex. Later the defendant told Ms. Shippers that it was “time for one of us to die.” The defendant went into the bathroom and returned with several pills which he swallowed. After requiring Ms. Shippers to write out a will for him, the defendant became unconscious. Ms. Shippers ran to the nearby apartment of a friend and notified the police. She led the police back to the defendant’s apartment where he was found still unconscious. An ambulance was called for the defendant and the police also took Ms. Shippers to the hospital for examination and treatment.
At trial, Ms. Shippers identified the defendant as her attacker and described the events of January 4, 1987, in detail. There were no eyewitnesses to the crimes, although the State called a number of witnesses who corroborated the details of Ms. Shippers’ story. David Cowden, the friend to whom Ms. Shippers fled, testified as to her condition upon arriving at his home. The prosecution presented tes timony with regard to the examination of Ms. Shippers and samples of hair, swabs, saliva, and blood as part of a rape examination kit. In addition, an FBI laboratory agent testified that the hairs taken from various pieces of evidence matched those of the defendant and the victim.
Mr. Johnson did not call any witnesses or present any evidence in his defense. Rather, defense counsel’s closing argument was based solely upon the failure of the State to present sufficient evidence to prove its case beyond a reasonable doubt. During the State’s final closing argument, the following discussion took place before the jury:
“Prosecution: Also remember that while the State of Montana produces evidence, it’s under no obligation to produce all the evidence. And, moreover, while the State can subpoena Mr. Podolak from Washington, D.C. and all the other witnesses, the defense has the same opportunity . . .
“Defense: I object. The defendant is not required to produce any evidence. I ask the jury to be instructed that that’s clearly an erroneous statement.
“The Court: Don’t talk about what they are supposed to do or can do. Don’t talk about their power of subpoena, because I have given an instruction.
“Prosecution: On the defendant not testifying, and we cannot comment on that.
“The Court: But I am giving an instruction that the defendánt need not prove his innocence.
“Prosecution: That’s correct.
“The Court: Don’t get into any question about their power of subpoenaing witnesses. The objection is sustained.
“Defense: Thank you.
“The Court: And I want the jury to be admonished to disregard any remarks by Mr. Hagerman about the defendant’s right to subpoena witnesses from Washington, D.C. or any where else.
“Prosecution: Suffice it to say that the State of Montana doesn’t have to produce all of the evidence that there may be in the case.”
In chambers the defendant moved for mistrial and the District Court denied that motion. The defendant appeals that denial.
Did the District Court properly deny defendant’s motion for a mistrial in light of the prosecutor’s comments made during his closing argument?
The prohibition against a prosecutor’s comments on the defend ant’s failure to testify is contained in Griffin v. California (1965), 380 U.S. 609, 85 S.Ct. 1229, 14 L.Ed.2d 106, and Chapman v. California (1967), 386 U.S. 18, 87 S.Ct. 824, 17 L.Ed.2d 705. The holdings in Griffin and Chapman form the foundation for the Montana cases which have considered the same issue. As pointed out in State v. Gladue (Mont. 1984), 208 Mont. 174, 677 P.2d 1028, 41 St.Rep. 249:
“In Griffin v. California . . . the United States Supreme Court set aside a judgment of conviction holding that the federal constitution ‘forbids either comment by the prosecution on the accused’s silence or instructions by the court that such silence is evidence of guilt.’ ” 677 P.2d at 1031.
In Gladue, this Court also discussed the qualification placed on Griffin by the U.S. Supreme Court in the Chapman case:
“The Chapman court adopted the position that it would not adopt a per se rule, and that instead it would look at such cases where error occurred and determine, ‘that before a federal constitutional issue can be held harmless, the court must be able to declare a belief that it was harmless beyond a reasonable doubt.’ ”
677 P.2d at 1031. This Court concluded that because the Court was unable to determine beyond a reasonable doubt that the prosecutor’s comments did not contribute to the verdict against Gladue, the conviction should be reversed.
In State v. Wilkins (Mont. 1987), [229 Mont. 78,] 746 P.2d 588, 44 St.Rep. 1794, applying the same rationale, this Court concluded that the District Court’s comments had the effect of focusing the jury’s attentions on the defendant’s silence at a late stage and that the court was not convinced the curative instruction had remedied the error. The Court noted that in order to rebut the presumption, the State must prove beyond a reasonable doubt that the error did not taint the conviction, citing Gladue.
In State v. Gonyea (Mont. 1987), [225 Mont. 56,] 730 P.2d 424, 44 St.Rep. 39, the same standards were applied. After a careful consideration of the entire transcript, the Court concluded that the comments were harmless beyond a reasonable doubt.
We conclude that the comments by the prosecution were improper in several respects. We agree with the District Court that it was not proper for the prosecution initially to comment on the defendant’s opportunity to subpoena witnesses. Next counsel referred to the fact that he could not comment on the defendant not testifying. While that remark undoubtedly was inadvertent, it was not proper. Last the prosecution reemphasized that the State did not have to produce “all the evidence.” That comment could have been construed by the jury to again suggest that the defendant somehow had failed in his duty to present a case to them. The record does not suggest an intentional comment on the accused’s silence. Nonetheless we conclude that the remarks clearly were objectionable.
The State’s evidence, which we will review further, was direct and compelling, with no significant contradictory evidence. Given the strength of the State’s case, there was clearly no need for any comments of this nature. Before considering the effect of these objectionable remarks in the present case, we wish to make a comment for the benefit of the prosecution in other criminal cases. Do not comment, even indirectly, on the silence of the accused.
Because we find the remarks to be objectionable, we must next consider the Chapman rule to determine if the error was harmless beyond a reasonable doubt. The testimony submitted by the State, including the extensive and unrebutted testimony of Ms. Shippers, clearly established the commission of the crimes by the defendant. Because of the revolting nature of the evidence, we have not discussed it at length. However, we wish to emphasize that the evidence of guilt was overwhelming. Even the circumstantial corroborating evidence was uncontradicted. In addition, the District Court gave numerous instructions during the course of the trial concerning the State’s burden of proof. The admonition of the jury immediately following the prosecutor’s remark demonstrates the trial court’s efforts to impress upon the jury the right of the defendant to remain silent and not to present any evidence. We therefore conclude that the evidence was so overwhelming that the comments can be classed as harmless beyond a reasonable doubt. We hold that the District Court’s denial of the motion for mistrial was proper.
We affirm the conviction of Mr. Johnson.
MR. JUSTICES HARRISON, GULBRANDSON, HUNT and Mc-DONOUGH concur.
|
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MR. JUSTICE JOHN CONWAY HARRISON
delivered the Opinion of the Court.
Plaintiffs brought this action in the district court by petition and stipulation appealing a decision of the defendant Board of Adjustments of City of Missoula (hereinafter referred to as the Board). After rendering judgment, the district court reopened the case, heard additional evidence, entered new findings of fact and conclusions of law and issued identical judgment. From both judgments, in favor of the plaintiffs and reversing the action of the Board, the Board appeals.
• On December 20, 1967 plaintiffs, hereinafter referred to as respondents, applied to the City of Missoula for a building permit to construct a shopping center complex upon the following described real property:
All of Block Ten (10), BECK’S HOME ADDITION, a platted subdivision, according to the official plat thereof, as filed in the Clerk and Recorders Office, Missoula County, Montana.
The subject property is situated within the boundaries of an “A” residential district, which zoning classification does not include the proposed construction as a permissive use. Pursuant to such zoning classification, the building permit application was denied by the city building inspector. The respondents then petitoned the Board for a variance from the established zoning classification. A public hearing was held and the Board denied the variance.
Respondents then appealed to the district court. The cause was submitted on the bare record of the Board by stipulation and briefs and without taking additional evidence. After the court rendered its first judgment reversing the Board and granting the variance, the Board filed several motions including a motion to amend the findings of fact and conclusions of law. At the time set for hearing on the Board’s various motions the respondents moved to reopen the ease and to offer additonal evidence. After hearing arguments on respondents’ motion to reopen, the court heard the additional evidence and offered the Board an opportunity to put in additional evidence. The court then issued additional findings of fact and conclusions of law, substituting them for the original findings and conclusions. In its second judgment the court made the same decision, reversing the Board and granting the variance.
At the Board’s hearing, and in the additional evidence presented to the lower court, the following facts were established.
The landowners acquired the subject property in 1948. It was annexed by the City of Missoula in 1959. Throughout this time the primary structure on this entire city block was a roller rink. Thus, when the property was zoned it contained a preexisting nonconforming use. (The structure is presently recognized by all concerned to be an obvious eyesore.)
Counsel for the respondents graphically describes the property as follows: “For many years a disgraceful ruin has occupied Block 10, Beck’s Home Addition. Known as the ‘Roller Rink’, this barn-like memorial to an ancient age stands as a salient sore-thumb in an ‘A’ residential zone. However, it is blessed with the nomenclature of an ‘existing non-conforming use’ which guarantees its existence as long as two-by-fours can be propped under its sagging rafters and roller skates are listed in Christmas catalogs.
“It would be foolish indeed for any party to prophesy as to the likely livelihood of the ‘Roller Rink” inasmuch as it continues to operate today just as it has for the past decade. Suffice to say that its longevity is as indescribable.”
Three years previous to this action the Board of Adjustment did grant a variance for this parcel so that the landowners could build thereon an apartment and professional building complex. That project was discarded by the landowners and their associates when they were unable to get sufficent occupancy commitments prior to construction.
79% of the landowners within 300 feet, and 73% of the landowners abutting the proposed shopping center complex, approved the ordered variance at the time the Board was presented with the respondents’ petition.. At the time of the initial Board hearing a 10,000 seat athletic stadium was planned for directly across Higgins Avenue from the proposed complex. That stadium is now substantially complete.
The respondent landowners and their associates have made a binding agreement with several of their neighbors to construct the proposed center in accordance with specifications designed to maintain the premises in an orderly appearing manner. This agreement includes restrictions on signs and garbage and provides for hedges and bushes on three sides of the building, for the purpose of hiding from view the loading and trash collection aspects of the complex. • The landowners and their associates appear willing to made curb cuts for access to the parking lot in such a manner as to restrict the traffic flow of the shopping center’s patrons to South Higgins Avenue, the one main street bordering the complex, thus preventing an increase in traffic flow on the side streets fronting the neighboring homes.
The property, as presently used for the roller rink, does not return sufficient income to the landowners. For example, taxes and a special assessment for 1967 amounted to $1,700 while the average income over the last 10 years has been approximately $2,000 per year. The property is not suitable for construction of single family residences. A realtor, one of the landowner’s associates, testified that it has been very difficult to sell homes in. this area, and the cost of building homes on this parcel, when weighed against the potential selling price, is too high. In fact other areas along South Higgins Avenue are likewise unsuitable for residential purposes. The evidence reveals that 13 out of 20 building sities in this area of South Higgins Avenue are businesses or building lots being held at business lot prices. The amount of traffic flow on South Higgins Avenue also makes it undesirable for residential property. The realtor testified that in his opinion the building of the shopping center would enhance the area for residential purposes.
The relationship between the landowners and their associates is, that the latter have an option to purchase the property from the landowners, pending the outcome of the action seeking the variance. Upon exercise of this option, a corporation would be formed, and the landowners would have a one-fourth interest in the corporation.
The following issues have been raised on appeal:
1. Was the reception of additional testimony after the first judgment error?
2. Does the evidence justify the grant of variance?
Considering the first issue, if the district court did err in hearing additional evidence after entering judgment, then the granting of the variance must rise or fall on the evidence before the Board; if it did not err then the additional evidence may be considered in support of the variance.
It must be remembered that this matter, as it was before the district court, is in its nature an appeal from the Board, with specific legislative authorization to take additional evidence. Section 11-2707 (11), R.C.M.1947. In addition the purpose for requiring a motion to amend findings is “ * * * so that the trial court may have an opportunity to correct them.” Stapp v. Nickels, 150 Mont. 220, 434 P.2d 141. We hold, under these specific circumstances, that the court did not abuse its discretion in fulfilling the options of the statute by taking • additional evidence thereby providing a basis for amplifying and expending its findings of fact.
The trial court can in the exercise of its discretion take the additional evidence contemplated by the statute. That it exercises this discretion in the face of objections to its original findings is in the interests of a just, speedy and inexpensive determination of the action. Rule 1, M.R.CÍV.P. The Board was offered the opportunity to present evidence at the reopening, which it did not take. There was no basis for it to assume that its objections to the proceedings, if correct, would be moot if it offered its evidence. We can only think then, that it is relying entirely on its view that the variance should not have been granted, whatever the evidence.
The next issue to be determined is what test is to be applied to the decision of the district court in reversing the Board and granting the variance. The leading Montana case is Freeman v. Board of Adjustment, 97 Mont. 342, 34 P.2d 534 (1934). It is there held that where no additional evidence is taken, the district court’s function is simply to review the Board’s determination to see whether there was an abuse of discretion. In the instant case the court took additional evidence. It has been held that where the enabling act permits a taking of additional evidence the test on appeal from the lower court is whether that court, not the Board, abused its discretion or committed an error of law. O’Neill v. Philadelphia Zoning Board of Adjustment, 384 Pa. 379, 120 A.2d 901 (1956). Agree ment with this rule is implied in the Freeman case where this Court said: “The district court did not abuse its discretion in affirming the order of the board.” (Emphasis ours.)
We now hold that upon review of a determination by a district court where it is hearing a petition for variance- and takes additional testimony the question for this Court to determine is whether the court committed an abuse of discretion. It is therefore only necessary to see whether in this, case there is competent and substantial evidence to sustain the action of the lower court. Freeman v. Board of Adjustment, 97 Mont. 342, 356, 34 P.2d 534 (1934).
Under Freeman a petition for variance must meet three criteria. The variance must not be contrary to public interest. A literal enforcement of the zoning ordinance must result, in unnecessary hardship, owing to conditions unique to the-property. The spirit of the ordinance must be observed, and substantial justice done. These were found in the court’s findings and it therefore committed no error of law. What remains is to see whether competent and substantial evidence exists to support such findings.
At the time this property was classified as residential “A” property, it already contained a business and thus was. brought into the zoning plan as a nonconforming use. At the present time the structure on the property is an eyesore, and the complex that is to replace it will substantially conform to-the look of the neighborhood. In addition 79% of the landowners within 300 feet of the property are in favor of the-variance. The removal of an eyesore, and the change to a-less objectional nonconforming use, when approved by such a. high percentage of adjacent landowners, cannot be said to-be contrary to the public interest.
The present owners of the land and the developer, a realtor, testified that using the property for residential purposes was-not economically feasible. It was pointed out that a 10,000-seat stadium exists directly across the street from the property.. In addition, it appears from the whole of the record that the-property is likely to lie idle if the variance is not granted. Today the prime purpose of the variance is to benefit the community and the individual property owner by assuring that property capable of being put to use, will not lie idle. See 74 Harvard Law Review 1396, Zoning Variances.
The only argument against the evidence of hardship is that it is not unique to the property in question. The Board would have us hold that respondents are seeking a rezoning of the property in the guise of a variance because other property situated in the same general area is not economically suitable for residential purposes. We would have to agree with the Board if that were the only aspect of hardship shown in this ease. However, this property is nevertheless unique because of the stadium directly across from it and because it is a pre-existing nonconforming use. In so holding we are not unmindful of that fact the Board had previously granted a variance for this same property and must have at that time made a finding of hardship.
It is apparent from the above that the spirit of the ordinance is observed by the granting of the variance and substantial justice has been done. The judgment of the lower court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES CASTLES, HASWELL and BONNER, concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
Michael Daron Smith (Smith) appeals from the judgment and sentence entered by the Eleventh Judicial District Court, Flathead County, on a jury verdict finding him guilty of the offense of felony theft of stolen property. We affirm.
We address the following dispositive issues:
1. Did the District Court abuse its discretion in admitting David Ferree’s testimony regarding his discussions with Smith?
2. Did the District Court abuse its discretion in excluding Ricky Burke’s testimony regarding Smith’s statements to him?
3. Did the District Court err in refusing Smith’s proposed jury instructions on theft of lost or mislaid property?
4. Did Smith’s sentence violate his constitutional right to due process?
On May 22, 1994, David Ferree (Ferree) observed two juveniles riding a motorcycle and a “four-wheeler” all terrain vehicle (collectively, the bikes) in a mountainous area near Bowser Lake, northwest of Kalispell, Montana. Later that day, Ferree observed the juveniles drive away from the area in a pickup truck without the bikes. Ferree suspected the bikes had been stolen and then hidden in the area.
Ferree told Smith about the bikes and where he thought they were hidden. The men discussed whether the bikes might be stolen property. They decided to retrieve the bikes and Smith borrowed money from his friend Ricky Burke to buy gasoline for that purpose. After retrieving the bikes, Smith and Ferree took them to Smith’s residence, cleaned them and placed them in Smith’s garage.
Smith and Ferree were certain that the bikes did not belong to the juveniles Ferree had seen riding them. They discussed whether to try to collect a reward for returning the bikes or sell them out of Montana. They checked Crimestoppers listings and the lost and found advertisements in the local newspaper and listened to the radio for any information regarding the bikes. Smith told Ferree that he had contacted the police, presumably to determine if the bikes were reported stolen.
An acquaintance of Ferree’s, Russell Geldrich, examined the bikes with the supposed purpose of purchasing them. Smith and Ferree quoted him a price and stated their preference that the bikes be taken where they could not be seen.
The bikes had been reported stolen on May 11 and 15,1994. Acting on a tip about their location, a detective from the Flathead County Sheriff’s Department and a detective from the Kalispell Police Department went to Smith’s residence on June 2, 1994. After gaining permission from Smith’s wife to search the garage, the detectives recovered the bikes.
The State of Montana (State) charged Smith by information with two counts of felony theft in violation of § 45-6-301(1), MCA. The information subsequently was amended to charge Smith with felony theft of the bikes or, in the alternative, with felony theft of stolen property under § 45-6-301(3), MCA. Smith rejected an offered plea bargain and exercised his right to a jury trial.
Smith’s trial was held on February 16,1995. The jury found Smith not guilty of felony theft of the bikes and guilty of felony theft of stolen property. The District Court subsequently sentenced Smith to the Montana Department of Corrections and Human Services for placement in an appropriate correctional institution or program for ten years. Smith appeals.
1. Did the District Court abuse its discretion in admitting David Ferree’s testimony regarding his discussions with Smith?
In addition to charging Smith, the State also charged Ferree with felony theft of the bikes. Ferree agreed to testify against Smith and to plead guilty to any offense of which Smith ultimately was convicted. In anticipation of Ferree’s testimony on the State’s behalf, Smith filed a pretrial memorandum addressing coconspirator testimony.
During the State’s direct examination of Ferree, the State questioned him regarding his statements to Smith and their discussions about the bikes. Based on the arguments in his pretrial memorandum, Smith objected to Ferree’s testimony concerning both his statements to Smith and the discussions between himself and Smith. The District Court overruled the objection and Ferree testified that he and Smith discussed the ownership of the bikes and suspected the bikes were stolen; at one point, Ferree affirmatively stated that he and Smith were sure the bikes did not belong to the juveniles Ferree observed riding them. Ferree also testified that he and Smith discussed attempting to either collect a reward for the bikes or sell them and send them out of state.
Smith argues generally that Ferree’s testimony was inadmissible. More specifically, he argues that Ferree testified as a coconspirator and that, because the State did not first establish the existence of a conspiracy between Smith and Ferree by independent evidence, Ferree’s testimony regarding his discussions with Smith and anything Smith said to him was not admissible pursuant to Rule 801(d)(2)(E), M.R.Evid. We review a trial court’s evidentiary rulings to determine whether the court abused its discretion. State v. Stringer (1995), 271 Mont. 367, 374, 897 P.2d 1063, 1067 (citation omitted).
“A statement is not hearsay if: ... [t]he statement is offered against a party and is ... a statement by a coconspirator of a party during the course and in furtherance of the conspiracy.” Rule 801(d)(2)(E), M.R.Evid. Before a coconspirator’s statement may be admitted under Rule 801(d)(2)(E), M.R.Evid., the State must establish a proper foundation, by a preponderance of the independent evidence, that a conspiracy exists. State v. Stever (1987), 225 Mont. 336, 342, 732 P.2d 853, 857. The State must show that a conspiracy exists, that the declarant coconspirator and the defendant were members of the conspiracy and that the declaration was made in furtherance of the conspiracy. Stever, 732 P.2d at 857 (citations omitted). Smith contends that the State failed to meet the foundational requirements of Stever and, therefore, that the District Court abused its discretion in admitting Ferree’s testimony. The State does not assert that it established the requisite foundation for admission under Rule 801(d)(2)(E), M.R.Evid. It argues that Ferree’s testimony was admissible under other provisions of the Montana Rules of Evidence and, therefore, that whether it met the foundational requirements for admission under Rule 801(d)(2)(E) is not relevant.
We observe, at the outset, that if evidence is admissible under one provision of the rules of evidence, it is admissible regardless of inadmissibility under another rule. See, e.g., Smith v. Updegraff (8th Cir. 1984), 744 F.2d 1354, 1364-65 n. 5 (citing United States v. Hewitt (11th Cir. 1981), 663 F.2d 1381). Thus, if Ferree’s testimony regarding his own statements to Smith and the discussions between the two is otherwise admissible, we need not address Smith’s contention that it was inadmissible under Rule 801(d)(2)(E), M.R.Evid., because the Stever requirements were not met.
We first address Smith’s objection to the State’s question to Ferree regarding what Ferree told Smith. The record reflects that, subsequent to the posing of the question and the District Court’s indication — in response to Smith’s objection — that the question did not appear to solicit hearsay, Ferree responded that he told Smith about the bikes and his feelings about the ownership of the bikes. A witness may testify to facts within that witness’ personal knowledge. Rule 602, M.R.Evid. Here, Ferree testified to facts that were within his own personal knowledge, namely his own statements.
Moreover, Ferree himself was the “declarant” under Rule 801(b), M.R.Evid., with regard to his own statements and he was testifying at trial as to those statements. For these reasons, Ferree’s testimony about his own statements did not come within the definition of hearsay contained in Rule 801(c), M.R.Evid.
We next address Smith’s objection to Ferree’s alleged coconspirator testimony concerning his discussions with Smith and Smith’s statements during those conversations. The State argues that Smith’s statements in these conversations were admissions under Rule 801(d)(2)(A), M.R.Evid., and, therefore, “not hearsay” pursuant to the express language of Rule 801(d). We agree.
An “admission by party-opponent” under Rule 801(d)(2)(A), M.R.Evid., is a statement which is “the party’s own statement” offered against the party. Here, Smith is the party defendant. Smith’s statements during discussions with Ferree obviously were Smith’s own statements. Moreover, those statements of Smith’s were offered against Smith, via Ferree’s testimony, by the State. As was the case in State v. Ottwell (1989), 239 Mont. 150, 158, 779 P.2d 500, 505, Smith’s statements were made by the party defendant in a criminal case and offered against the party, by the prosecution, through the testimony of the person to whom they were made. We conclude that Smith’s statements to Ferree were “not hearsay” under Rule 801(d)(2)(A), M.R.Evid.
Finally, it is clear that Ferree’s testimony about his statements to Smith and Smith’s statements during their discussions was relevant under Rule 401, M.R.Evid., in that it related to Smith’s knowledge and mental state both at the time he and Ferree obtained control over the bikes and at later times. The mental state element of the alternative offenses with which Smith was charged is “purposely or knowingly.” See §§ 45-6-301(1) and (3), MCA. Generally, “[a]ll relevant evidence is admissible.” Rule 402, M.R.Evid.
We conclude that Ferree’s testimony about his own statements and Smith’s statements to him was not hearsay and was relevant. Therefore, we further conclude that it was admissible under Rule 402, M.R.Evid., without regard to the foundational requirements for admissibility under Rule 801(d)(2)(E), M.R.Evid. See Smith, 744 F.2d at 1364-65. We hold, therefore, that the District Court did not abuse its discretion in admitting Ferree’s testimony concerning his discussions with Smith or Smith’s statements to him.
2. Did the District Court abuse its discretion in excluding Ricky Burke’s testimony regarding Smith’s statements to him?
Ricky Burke (Burke), the friend from whom Smith borrowed money for gas needed to retrieve the bikes, testified on Smith’s behalf at trial. The State objected, on hearsay grounds, to questions of Burke about Smith’s statements to him regarding Smith’s purpose in borrowing gas money. Smith’s counsel responded that, because Smith was a party to the case, his statements to Burke were declarations by a party and, therefore, admissible. The District Court expressed doubts, but overruled the State’s objection.
Burke’s testimony concerning Smith’s statements to him continued. The District Court subsequently reversed its earlier ruling and determined that Smith’s statements to Burke were not admissions under Rule 801(d)(2)(A), M.R.Evid., presumably because they were not offered against Smith. On that basis, the court precluded further testimony from Burke regarding Smith’s statements to him.
We observe at the outset that Smith does not contend on appeal that the District Court abused its discretion in determining that Smith’s statements to Burke were not admissions under Rule 801(d)(2)(A), M.R.Evid. Instead, Smith argues that his statements to Burke were admissible under the hearsay exception for then-existing state of mind set forth in Rule 803(3), M.R.Evid. However, Smith did not offer Burke’s testimony to the District Court pursuant to Rule 803(3), M.R.Evid.; as set forth above, the basis on which the testimony was offered was Rule 801(d)(2)(A), M.R.Evid.
“It is axiomatic that a party may not change the theory on appeal from that advanced in the district court.” State v. Henderson (1994), 265 Mont. 454, 458, 877 P.2d 1013, 1016 (citation omitted). Smith having failed to raise the admissibility of Burke’s testimony under Rule 803(3), M.R.Evid., in the District Court, he may not raise it in this Court. See State v. Johnson (1993), 257 Mont. 157, 162, 848 P.2d 496, 499. We consider for review only those questions raised in the trial court (Johnson, 848 P.2d at 499) and, therefore, we decline to address the admissibility of Burke’s testimony under Rule 803(3), M.R.Evid.
3. Did the District Court err in refusing Smith’s proposed jury instructions on theft of lost or mislaid property?
Faced with alternative charges of felony theft and felony theft of stolen property, Smith filed a pretrial memorandum addressing what he denominated as the § 45-6-302, MCA, “lesser included offense” of theft of lost or mislaid property, a misdemeanor. He also submitted a series of proposed jury instructions on that offense, all of which were refused by the District Court. Smith argues that he was entitled to the instructions and that the court’s refusal to give them constituted error.
A criminal defendant is entitled to a requested lesser included offense instruction where, based on the evidence, the jury rationally could be warranted in convicting on the lesser offense and acquitting on the greater offense. Section 46-16-607(2), MCA; State v. Fisch (1994), 266 Mont. 520, 522, 881 P.2d 626, 628. Thus, we first must determine whether, as a matter of law, theft of lost or mislaid property is a lesser included offense of theft of stolen property. If so, we then must determine whether Smith’s proposed instructions were supported by the evidence.
Insofar as it is relevant here, an “included offense” is statutorily defined as one which “is established by proof of the same or less than all the facts required to establish the commission of the offense charged[.]” Section 46-1-202(8)(a), MCA. The term “facts,” as used in the statute, refers to the statutory elements of the offense and not the individual facts of each case. State v. Ritchson (1981), 193 Mont. 112, 116, 630 P.2d 234, 237.
Section 46-1-202(8)(a), MCA, does not, by its terms, define a ‘lesser” included offense. The test we traditionally have applied in determining whether an offense is a lesser included offense of another offense was stated in Blockburger v. United States (1932), 284 U.S. 299, 304, 52 S.Ct. 180, 182, 76 L.Ed 306, 309. See, e.g., State v. Arlington (1994), 265 Mont. 127, 163, 875 P.2d 307, 330; State v. Long (1986), 223 Mont. 502, 510, 726 P.2d 1364, 1369. In the context of a defendant’s entitlement to jury instructions on an alleged lesser included offense, we have characterized the Blockburger test as stating that “separate distinct offenses require proof of additional facts, where lesser included offenses do not.” Long, 726 P.2d at 1369. Applying that test in Long, we concluded that “the statutes defining misdemeanor assault and sexual assault clearly indicate that misdemeanor assault is not a lesser included offense of sexual assault” because misdemeanor assault requires proof that the physical contact be of an insulting or provoking nature and no such proof is required for sexual assault. Long, 726 P.2d at 1369.
The offense of theft of stolen property is committed when a person purposely or knowingly obtains control over stolen property, knowing the property to have been stolen by another, and has the purpose of depriving the owner of the property. Section 45-6-301(3)(a), MCA. Thus, to establish the offense of theft of stolen property, the State must prove — among other things — that the property was stolen and that the defendant knew the property was stolen by another person.
The offense of theft of lost or mislaid property is committed when a person obtains control over lost or mislaid property and:
(a) knows or learns the identity of the owner or knows, is aware of, or learns of a reasonable method of identifying the owner;
(b) fails to take reasonable measures to restore the property to the owner; and
(c) has the purpose of depriving the owner permanently of the use or benefit of the property.
Section 45-6-302, MCA. To establish the offense of theft of lost or mislaid property, the State must prove — among other things — that the property was lost or mislaid; that the defendant knew or learned the owner’s identity or learned of a reasonable method of identifying the owner; and that the defendant failed to take reasonable measures to return the property.
It is clear from this limited comparison of the elements of the offenses of theft of stolen property and theft of lost or mislaid property that these are distinct offenses, each of which requires proof of at least one “fact” that the other does not. While both offenses are premised on a person obtaining control over property belonging to another, the very nature of the property at the time control is obtained is markedly different in the two offenses: for one offense, the State must prove that the property was stolen property while, for the other offense, the State must prove that the property was lost or mislaid property. Nor does the existence of a substantially similar element in the two offenses — “has the purpose of depriving the owner of the property” in the offense of theft of stolen property and “has the purpose of depriving the owner permanently of the use or benefit of the property” in theft of lost or mislaid property (see §§ 45-6-301(3)(a) and 45-6-302(c), MCA) — render the latter a lesser included offense of the former. Substantial overlap in the proof which would be offered to establish both offenses does not make one offense a lesser included offense of another where each requires proof of different facts. Arlington, 875 P.2d at 330. Thus, we conclude that theft of lost or mislaid property is not a lesser included offense of theft of stolen property.
As we observed at the outset of our discussion of this issue, we need only reach the secondary question of whether evidence supported Smith’s proposed instructions regarding theft of lost or mislaid property if we determine that that offense is a lesser included offense of theft of stolen property. Having concluded otherwise, no amount of evidence could have entitled Smith to instructions on the offense of theft of lost or mislaid property. We hold, therefore, that the District Court did not err in refusing Smith’s instructions.
4. Did Smith’s sentence violate his constitutional right to due process?
Prior to trial, the State offered Smith a plea agreement under which it would recommend a probationary sentence, deferred or suspended depending on his prior record, in exchange for a guilty plea to the theft charge. Smith rejected the offer and exercised his right to a jury trial. After the jury found Smith guilty of the offense of felony theft of stolen property, the District Court sentenced Smith to the Department of Corrections and Human Services for placement in an appropriate institution or program for ten years. Smith contends that the sentence penalized him for exercising his right to a jury trial in violation of his right to due process.
District courts have broad discretion in sentencing defendants convicted of criminal offenses. State v. Lloyd (1984), 208 Mont. 195, 199, 676 P.2d 229, 231. We generally review a criminal sentence only for legality — that is, to determine whether it is within the statutory parameters established by the legislature; where a sentence is within those parameters, we generally will affirm it. See State v. Almanza (1987), 229 Mont. 383, 386, 746 P.2d 1089, 1091. There are, however, exceptions to these general rules.
Punishing a person for exercising a constitutional right is a basic due process violation. State v. Baldwin (1981), 192 Mont. 521, 525, 629 P.2d 222, 225 (citations omitted). Indeed, in Baldwin, we vacated and remanded for resentencing because we were unable to determine from the record whether the defendant was punished for exercising his right to a jury trial after rejecting a plea agreement. Baldwin, 629 P.2d at 226.
In Baldwin, the trial court was directly involved in the unsuccessful plea negotiation process. The defendant chose not to plead guilty and the case proceeded to trial. After the defendant’s conviction, the trial court imposed a much harsher sentence than it originally had offered in exchange for a guilty plea. Baldwin, 629 P.2d at 224. We held that a trial court which involves itself in an unsuccessful plea bargaining process and, thereafter, imposes a harsher sentence than was offered in exchange for a guilty plea, must ex pressly point out the factors which justify the increased sentence. Baldwin, 629 P.2d at 226. Because the trial court had not done so, there was no assurance that the sentence was not increased in retaliation for the defendant’s insistence on a jury trial; on that basis, we remanded for resentencing. Baldwin, 629 P.2d at 226. We followed Baldwin and remanded for resentencing on substantially similar facts in State v. Tate (1982), 196 Mont. 248, 639 P.2d 1149.
Here, Smith concedes that the District Court was not involved in any way in the unsuccessful plea negotiations between himself and the State. Thus, Baldwin has no application here.
Smith also concedes that the District Court specified the bases for the sentence it imposed, and he does not challenge any of those bases. Simply put, nothing on the record before us supports Smith’s claim that his sentence was improperly increased because he exercised his right to a jury trial. We hold, therefore, that Smith’s sentence did not violate his constitutional right to due process.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES ERDMANN, HUNT and LEAPHART concur.
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PER CURIAM.
Ross Engle and John D. Gibb were convicted in the district court of Yellowstone county, Hon. Guy C. Derry, district judge, presiding, by a jury’s verdict for unlawfully possessing eight coin-operated slot machines, and here appeal from the judgment of conviction.
The information filed August 22, 1949, charges: “That one Ross Engle and John D. Gibb, late of the County of Yellowstone, State of Montana, on or about the 20th day of August, A. D., 1949, at the county of Yellowstone and State of Montana, committed the crime of Possession of Gambling Implements, a Misdemeanor, in that the said Ross Engle and John D. Gibb, then and there being, did, then and there, wilfully, wrongfully and unlawfully have in their possession and under their control, and did keep in a certain building then and there under their management and control, and commonly known as the Silver Dollar Inn located at 2902 Minnesota Avenue, Billings, Montana, gambling implements, to-wit: eight slot machines, contrary to the form, force and effect of the statute in such ease made and provided, and against the peace and dignity of the State of Montana. ’ ’
The law says: “Any person who has in his possession, or under his control, or who permits to be placed, maintained or kept in any room, space, enclosure or building, owned, leased or occupied by him, or under his management or control, any * * * slot machine # * * is punishable by a fine of not less than one hundred nor more than one thousand dollars, and may be imprisoned for not less than three months nor more than one year in the discretion of the court; provided, however, that this section shall not apply to a public officer, or to a person coming into possession thereof in or by reason of the performance of an offiical duty and holding the same to be disposed of according to law.” R. C. M. 1947, sec. 94-2404.
On April 1, 1907, the above statute went into effect as the law of this state and it has since continued as the law of Montana.
Under this law no one may lawfully possess any slot machine in this state other than “a public officer, or * * * a person coming into possession thereof in or by reason of the performance of an official duty and holding the same to be disposed of according to law.” R. C. M. 1947, sec. 94-2404, supra.
Defendants had in their possession and under their control the eight slot machines. They were not nor do they claim to be public officers. They did not come into possession of the machines in or by reason of the performance of an official duty. They were not holding the machines “to be disposed of according to law. ’ ’ A jury found defendants guilty of the offense banned by the law. R. C. M. 1947, sec. 94-2404. The pleadings and the evidence are ample to sustain both the verdict and judgment of conviction herein.
Appellants rely upon Chapter 142, of the Session Laws of 1945, a licensing Act, to justify their possession of their battery of eight slot machines, contending that such licensing Act effected a repeal of the theretofore existing statutes banning the possession and operation of all slot machines licensed by the state board of equalization.
The keeping of slot machines is banned by the provisions of R. C. M. 1947, sections 94-2401 and 94-2404, as well as other provisions of our Codes not necessary to here consider. These laws have not been repealed by the provisions of Chapter 142, Laws of 1945, and the payment of a license fee to the state board of equalization does not legalize the outlawed machines nor is it justification for the running, conducting', operating, maintaining, keeping or possessing of any of these banned one-armed bandits. See State ex rel Replogle v. Joyland Club, 124 Mont. 122, 220 Pac. (2d) 988; State v. Israel, 124 Mont. 152, 220 Pac. (2d) 1003.
We find no merit in any of the specifications urged and no prejudicial error in the record.
The clerk of this court will cause the eight slot machines and the coins therein contained to be returned to the trial court to be disposed of as is provided in R. C. M. 1947, sections 94-2411 and 94-2412, and in State ex rel. Replogle v. Joyland Club, supra.
The judgment is affirmed and remittitur to issue forthwith.
|
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ORDER
PER CURIAM:
Original Proceeding.
The petition for a writ of supervisory -control is hereby denied and this proceeding is dismissed.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment entered upon a jury verdict in two eases consolidated for trial. The judgment was in favor of the plaintiffs, respondents here, in the amount of $37,978.62 plus costs. Motion for a new trial was made and denied.
The appellants, defendants below, are husband and wife and the owners of a ranch in Rosebud and Treasure Counties, consisting of about five thousand acres, one-half deeded and one-half leased lands. The ranch included over three hundred acres of cultivated lands, the remainder being range and ranch land.
The respondents, plaintiffs below, are also husband and wife, and in the year 1954 they became the tenants of the ranch owned by appellants. Hereinafter the parties will be referred to by their last name, appellants as Wolff and respondents as Green. Thus the owners and landlord are Wolff; the tenants are Green.
In 1954, Wolff leased the ranch to Green whereby the parties agreed to share equally the profits of a cow and calf operation, Green to do the ranching, Wolff to furnish the stock. Wolff furnished about one hundred fifty head of cows and no difficulty was had.
In 1955, the parties entered into a new leasing agreement, which agreement and the operation thereunder became the subject of the lawsuits involved in this appeal. In the fall of 1955 the parties decided to convert the operation to a steer operation. A new agreement was entered into dated December 22, 1955. This agreement is on a U.S.D.A. form issued by the Farmers Home Administration in Forsyth entitled “Standard Farm Lease” and is for a term of four years. By this agreement, Green was to do the farming and ranching. Wolff was to supply-six hundred head of steers to be marketed in the fall. The number of acres cultivated was shown with a share of crops provided. The agreement also provided that ‘ ‘ The acres of crops and numbers of livestock shown above are those planned for the first year of this lease, and may be changed from year to year by mutual agreement. ’ ’ The net proceeds on the steer operation were to be divided equally. Aside from the share crop arrangement, it was provided that Green pay $435 as annual rental in cash.
On December 21, 1955, Wolff and Green as second parties obtained a four year agreement with one Monte for grazing privileges for 600 head of yearling steers for six months each summer season for a price of $3,900 per season.
The steers were purchased by Wolff that same fall and wintered on the Wolff ranch by Green. The steers were sold in the fall of 1956, the profit divided and no problem was had.
In the fall of 1956 steers were again purchased, numbering 604 head. Wolff also purchased 160 head of heifers. These cattle, steers and heifers were wintered on the ranch and in the spring the heifers were marketed. The steers were summered on the Monte pasture. However, it is at this point that a difference arises. Wolff contends that the 160 head of heifers were a separate deal of his own and not part of the agreement. Green contends they are part of the same deal. At any rate, sometime in the spring of 1957, differences arose between Green and Wolff. Wolff made it known that he intended to get Green off the ranch. Wolff previously had been something of an absent landlord, being a Federal Government employee in Billings. By this time he had retired and moved onto the ranch in spite of a provision in the lease agreement that his right to be on the premises at reasonable times was for repairs, improvements and inspection. Following this, according to Green’s version, Wolff pursued a course of harrassment and interference with Green’s operation under the agreement. Wolff, without participation or approval of the Greens, caused the Monte lease of grazing lands to be cancelled. Wolff gathered the steers in the fall of 1957 without notifying Green and sold them, in September.
Green continued in possession of the premises for the full term of the lease. However, the parties did not reach an agreement on the proceeds of the 1956-1957 operation nor, so far as the cattle operation was concerned, did they operate as if under the terms of the agreement. Green continued to operate the ranch and took cattle to graze at a price per head. Wolff continued to buy cattle and operated on other grazing lands, but did not pretend to operate under the terms of the lease.
In the fall of 1957, Mrs. Wolff at the suggestion of an attorney, contacted Green to reach a solution. Green agreed to quit the premises if a satisfactory accounting was had. None was ever arrived at.
In September 1958, Green filed an action against Wolff. The first cause of action was for an accounting of the operation of 1956-1957, seeking one-half share of the proceeds of the sale of the heifers and steers in 1957 less certain credits due Wolff. The second cause of action was for net profits for the year 1957-1958, which Green would have received had Wolff furnished the required 600 head of steers in the fall of 1957 to be marketed in the fall of 1958.
A subsequent action was filed for loss of profits for the 1958-1959 operation. The foregoing is a general statement of the situation bringing on this appeal. The record is somewhat voluminous and the briefs are likewise lengthy. The appellants have set forth twenty specifications of error which are directed to all stages of pleadings, trial, instructions, and rulings of law. The specifications of error are further subdivided. The appellant argues in subheadings not keyed to the specifications of error. We shall attempt to analyze the appeal in conformity with the briefs as much as possible. We shall state facts in keeping with the rule that a jury verdict is conclusive if there is substantial evidence to support it.
The first argument of appellants is directed to the alie gations of the complaint. Wolff demurred on the grounds that there were not sufficient facts alleged to constitute a cause of action. This was overruled. Then Wolff objected to the introduction of any evidence on several grounds. This too was overruled. Wolff’s position is that the first cause of action is improperly pleaded in that the general averments are in conflict with the lease agreement which is pleaded haee verba. Wolff contends that the allegations of paragraph II are inconsistent with the agreement in that the allegations concerning the commercial production of livestock and the defendant’s obligation to furnish at his own expense 600 head of hereford steers to be marketed in the fall, the proceeds to be equally divided, are in conflict with the written agreement. We have examined paragraph II and find that it is an accurate paraphrasing of the written agreement, insofar as the written agreement goes. The written agreement clearly contemplates certain other matters such as “that such steers shall be marketed in the fall of the year at a time agreed upon by the lessor and lessee. ’ ’ To plead then that the steers were to be marketed in the fall is not in conflict with the agreement.
Next, Wolff claims that loss of profits must be specially pleaded and the facts giving rise to such loss set forth in the pleading. He then asserts that the complaint pleads the claim as general damages without sufficient facts upon which a jury could establish whether there was any loss of profits. It is at once apparent that Wolff did not specially demur. (See Rickards v. Aultman & Taylor Machinery Co., 64 Mont. 394, 210 P. 82.) But even so, appellant urges that the case of Whitelaw v. Vallance, 60 Mont. 172, 198 P. 449, governs the situation.
In the Whitelaw case it was alleged that defendants were to deliver to plaintiff two carloads of potatoes for $1.30 per hundred, that they failed to do it and that plaintiff was damaged in the amount of $700. This court set aside the trial court’s directed verdict and ordered a new trial. One of the reasons for the court’s holding was that the contract, as alleged in the complaint, was silent as to time of performance and even the nse of the potatoes was not alleged. The decision relied on a general statement of law from O ’Brien v. Quinn, 35 Mont. 441, 90 P. 166, for the rule that “Damages for loss of business and profits could only properly come under the designation ‘special damages’.”
However, the general statement from the O’Brien case and the "Whitelaw case was referred to in Rickards v. Aultman & Taylor Machinery Co., 64 Mont. 394, 400, 401, 210 P. 82, and it was there pointed out that as against a general demurrer it is sufficient to plead damages without pleading what was referred to as the true measure of damages. Also, in Carlson v. Stone-Ordean-Wells Co., 40 Mont. 434, 442, 107 P. 419, the same argument as made here was disposed of as follows:
“It is further urged that the complaint is insufficient to support a judgment for special damages. The objection, however, assumes that special damages were recovered. In O’Brien v. Quinn, 35 Mont. 441, 90 Pac. 166, we stated the general rule applicable to circumstances such as appeared from the record in that ease to be that loss of profits is to be classed as special damages, and that rule has the approval of the authorities generally. But where the very object of, and inducement to, a particular contract, are the profits which are to accrue to one of the parties to it, and these facts are understood by both in making and carrying out the agreement, so far as it is carried out, then, for a wrongful breach of that contract by the other party to it, the one whose profits are thus cut off may recover his loss of profits as general damages, upon the theory that such loss will necessarily result from the breach of that character of contract. The general principle underlying this rule was early stated by Judge Cooley, in Burrell v. New York & Saginaw Salt Co., 14 Mich. 34, a leading case which has been followed repeatedly in this country. See, also, 8 Am. & Eng. Ency. of Law, (2d Ed.) 622; Tahoe Ice Co. v. Union Ice Co., 109 Cal. 242, 41 Pac. 1020. We think the present case falls within the rule just announced, and that recovery was had for general damages only.
‘ ‘ That loss of profits may be recovered as an element of damages for the breach of a contract is not now an open question. ’ ’ See also Solberg v. Sunburst Oil & Gas Co., 73 Mont. 94, 108, 235 P. 761.
Here the “very object of, and inducement to” the contract is the share in net profits of the cattle operation and the share of the crops.
We hold that the contract, breach, and damages were sufficiently alleged.
Next appellant Wolff urges that there was an impossibility of performance of the contract in that the “Monte lease” was an essential part of the operation, and the loss of that lease caused the contract to become impossible to perform. The record makes it clear that summer pasture, in addition to the home ranch, was necessary to conduct the operation of the cattle. It is also clear that the Monte lease adequately filled this need. But, it is uncontradieted that summer grazing was available in other pastures. In the fall of 1957, no additional pasture was necessary because the steers, if furnished, would have been wintered on the home ranch. Wolff made no attempt to furnish them. In the 1955-1956 and 1956-1957 operations, the parties in actual practice carried the Monte pasture expense of $3,900 per year as a cost of operation fully reimbursable to Wolff. The record reveals that Wolff acquired some 350 head of cattle but ran them on his own — not under the contract. Much more from the evidence could be recited to show that Wolff’s theory of impossibility of performance simply did not apply to the proof. Wolff’s assertions concerning instructions in this regard are deemed without merit.
Next, appellant Wolff asserts that in one cause of action regarding the 1958-1959 cattle operation respondent Green did not fully perform in that he did not show that he was at all times ready, willing and able to perform. To assert this, Wolff recites evidence that Green took in other cattle on the home-ranch to winter at a rental of so much per head; that the home ranch could not winter the additional 426 head of cattle if Wolff had supplied the 600 head under the contract; and that therefore he, Green, was not able to perform. In addition, on one group of cattle that were pastured by Green on a monthly rental basis plus a share in the weight gain, appellant Wolff contends that Green did not account for one-half of the profit from the weight gain. This latter contention is made parenthetically. Green did credit all the income from rentals as credit on mitigation of damages. It is obvious from the record that Green might very well have wintered the cattle in question on his own share of the crops under the contract, and if this were not so, the burden of proof was on Wolff. (See A. T. Klemens & Son v. Reber Plumbing & Heating Co., 139 Mont. 115, 360 P.2d 1005, and Garden City Floral Co. v. Hunt, 126 Mont. 537, 255 P.2d 352.)
The record reveals that Green did pasture cattle, but also credited the income received in mitigation of damages. The court instructed the jury as to mutual termination of the lease, as to the requirement that respondent Green must have performed all the terms and conditions on his part to be performed before recovery could be had, and there was substantial evidence to show that the jury could determine the questions. We have examined the instructions given and those refused and have determined that the jury was fairly and adequately instructed.
Next appellant urges that the judgment cannot stand because the real parties in interest as revealed by the exhibits have not been joined as parties. He makes this contention because Exhibit No. 1 reveals that Green assigned 50 percent of the net sale proceeds of “750 steers” for the 1957 operation to the Farmers Home Administration to secure a loan made to Green. The instrument on its face is clearly a security device with Green the “borrower.” It is not an absolute assignment. This matter was not pleaded, but even so, a security device covering a particular debt such as this does not affect the status of Green as the real party in interest. (See Reid v. Hennessy Co., 45 Mont. 462, 124 P. 273.) R.C.M.1947, § 93-2801, as to real parties in interest, has been held by this court in Streetbeck v. Benson, 107 Mont. 110, 80 P.2d 861, to have the purpose of protecting the debtor from a second suit. There is no such contention made here, nor under the circumstances of this ease could there be.
Next appellant urges that error was committed in the trial court’s refusal to allow testimony concerning damages to appellant for loss of use of the land. Appellant also urges, in this connection, that he was entitled to an instruction on damages if the jury found a mutual termination of the lease. We are simply unable to see from the record any reasonable evidence of mutual termination, and, even though the court gave an instruction on mutual termination, no further instruction was required because the appellant already had more than he was entitled to.
Next, appellant urges that it was error for the trial court to rule against appellant’s objection to the introduction of evidence and a motion for nonsuit, both directed to the failure to plead or prove “arbitration” under the terms of the contract.
The contract provided:
“ (6) Any differences between the parties under this lease that cannot be settled after thorough discussion, shall be submitted for arbitration by a committee of three disinterested persons, one selected by each party hereto and the third by the two thus selected, and their decision shall be accepted by both parties.”
In the instant case, no arbitration was had. The complaint plead generally that, “* * * and [plaintiffs] in every respect duly performed all and every [one] of the terms and conditions of said agreement.”
In Wortman v. Montana Cent. Ry. Co., 22 Mont. 266, 56 P. 316, this court citing Randall v. American Fire Insurance Co., 10 Mont. 340, 25 P. 953, held that a provision in a contract requiring all differences or controversies arising between the parties as to their rights and liabilities to be submitted to arbitration will not be allowed to interfere with, or bar the litigation of such controversies when brought into court. The conclusion was reached on the basis of E.C.M.1947, § 13-806, which makes void contract provisions restricting access to the courts.
Appellant cites Solem v. Connecticut Fire Ins. Co., 41 Mont. 351, 109 P. 432, and Aetna Ins. Co. v. Hefferlin, (9th Cir.1919) 260 F. 695, for the proposition that failure to have arbitration under the contract provision renders the matter non-actionable. However, in the Solem case this Court at p. 353 of 41 Mont. at p. 433 of 109 P. said, “When the parties agreed to submit the amount of plaintiff’s loss to arbitration, and pursuant to such agreement the appraisers made their award, such award, unless set aside, was binding upon both parties * * *. ’ ’ This is far different than here.
Our arbitration statute, E.C.M.1947, § 93-201-1, provides:
“ What may be submitted to arbitration, and when. Persons capable of contracting may submit to arbitration any controversy which might be the subject of a civil action between them * *
This contemplates voluntary submission of disputes in exist, ence at the time of the agreement and does not change our existing law.
Next, appellant asserts that Green is estopped from requiring Wolff to supply the cattle. This assertion is made because of evidence of a conversation between Green and Mrs. Wolff in August, 1957. Mrs. Wolff wanted Green to vacate the premises. Green said he would if a settlement of the entire contract could be achieved. The evidence is clear that no settlement of the entire contract was attempted. Wolff only wanted to settle for one year. Green mailed his check for $435 represent ing the cash rental for the ensuing year on December 19, 1957. Tbe check was refused and returned by Wolff. Wolff, by every statement and action, bad repudiated tbe agreement and indicated that be, unilaterally, did not intend to pursue tbe agreement. We fail to see bow any principle of estoppel against Green can operate, and tbe court did not err in refusing to instruct on that theory.
Next appellant urges that tbe court erred in refusing to grant bis motion for dismissal and nonsuit made at tbe close of plaintiff’s case on tbe grounds that plaintiff elected bis remedy of breach of contract when tbe first suit was filed before tbe end of tbe 1957-1958 season, and that thereafter, having elected to treat tbe contract as breached, be could not treat each year as a divisible part of tbe contract. We have some difficulty in grasping tbe theory advanced, and will quote tbe objection and motion made to tbe trial Court:
“3. In tbe third place, your Honor, tbe defendants, and each of them, object and ask for a nonsuit and dismissal and for a directed verdict upon tbe grounds that by the pleadings in this case tbe plaintiffs, and each of them, have elected a remedy and such remedy that they have elected is an election to bring an action for a profit of tbe operation and accordingly are bound by such election, and any evidence which would in any way aid tbe plaintiffs would be incompetent, irrelevant and immaterial and at variance with tbe pleadings in their complaint.”
Later, in an effort to explain bis position, counsel stated in part: “Tbe contract is cancelled. If you want to bring an action for loss of profits, if you want to stay in possession, you can’t have both. * * *”
Tbe contract here contained several divisible parts. It ran for four successive years and each year of tbe farm operation and each year of tbe livestock operation is a separate phase to be separately performed and settled. In tbe first years, the parties treated the contract that way, too. R.C.M.1947, § 93-8704, provides:
“Successive actions may be maintained upon the same contract or transaction, whenever, after the former action, a new cause of action arises therefrom.” This governs the situation here. See also McFarland v. Welch, 48 Mont. 196, 136 P. 394, and Cohen v. Clark, 44 Mont. 151, 119 P. 775.
Appellant asserts three other grounds for reversal including damages, use of notes, and instructions. It would unduly lengthen this opinion to discuss each separately, but we have examined them and find no prejudicial error committed.
The verdict and judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, DOYLE and JOHN C. HARRISON concur.
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment of the district court of the eleventh judicial district. The action was for damages resulting from a collision of plaintiff Franck’s logging truck with defendant’s cattle.
On September 16, 1958, the defendant, owner of about eighty head of cattle, was herding them along the east side of U. S. Highway 93 with the aid of Walter Johnson.
At a point about one-third of a mile south of Eureka, Montana, the highway rises to form a hill which is not steep, although high enough to somewhat obscure the vision of those approaching from either side of the hill. At the trial there was conflicting evidence as to what extent the vision of plaintiff’s driver was obscured by the hill.
When it reached the hill the herd moved onto the highway proper so that it extended completely across the highway. The herd was about half-way up the hill when the accident happened. Guy E. Allen, an employee of plaintiff Franck, was driving Frank’s logging truck and trailer with a full load of logs. Heading north towards Eureka the truck came over the crest of the hill and went between defendant who was almost at the head of the herd on the west side and Walter Johnson who was at the rear of the herd on the east side. There was conflicting testimony as to the speed of the truck and whether or not the defendant waved to warn Allen. The truck collided with twenty head of cattle and hit a pickup truck which had stopped immediately north of the herd. The pickup truck, claimed to be owned by Glen Keltner, was being driven by Eufus Holder. The logging truck, with the pickup being pushed in front, went off the highway on the west side and overturned.
By a third amended complaint, plaintiff Franck joined his insurer, Truck Insurance Exchange, as a party plaintiff. The complaint alleged negligence upon the part of the defendant in blocking the highway so as to obstruct the passage of vehicles at a point where vision was obstructed, and in failing to post guards to warn oncoming vehicles. Plaintiff Truck Insurance Exchange asked damages of $2,133.97, the amount it paid for repairs to the logging truck and trailer. Plaintiff Franck asked damages of $250, the amount he had to pay towards the repairs, and $1,080 damages for loss of use of the truck while it was being repaired. Plaintiffs also asked damages for loss of the pickup based on an assignment of the claim by the owner to the plaintiffs. The defendant cross-complained asking damages for the negligent killing of twenty head of cattle, for the cost of removing the dead cattle from the highway, and for exemplary damages of $5,000 under R.G.M. 1947, § 17-408.
The jury gave a verdict for defendant cross-complainant and awarded $5,100 damages for loss of the cattle and costs of removal and $2,500 exemplary damages. Judgment was rendered accordingly and plaintiffs appealed.
The question presented by plaintiffs’ first specification of error is whether the court erred in failing to give plaintiffs’ offered instructions number 5 and 6.
Plaintiffs’ offered instruction 5 is as follows:
“You are instructed that the driving or herding of cattle on a public highway is not unlawful in Montana. However, there are reciprocal duties on the part of all users of public highways toward each other to use ordinary care not to encroach upon the rights of other highway users. No highway user can appropriate the highway to his own use to the exclusion of other lawful users.
“If you find that defendant’s herd extended across and blocked the entire highway at a point where vision was obstructed, and you further find that the defendant failed to give sufficient notice or warning of such herd to plaintiff’s employee, Guy B. Allen, at the time of the accident complained of, then you must find that the defendant was negligent.”
Plaintiff’s offered instruction 6 provides:
“The law imposes upon the driver of any vehicle using a public highway, and herder of cattle, the same duty, each to exercise ordinary care to avoid causing an accident from which injury might result. The cattle herder’s duty, while using the highway, includes exercising ordinary care to avoid placing himself or others in danger. The driver’s duty requires him to be vigilant at all times, keeping a lookout for traffic and other conditions to be reasonably anticipated, and to keep the vehicle under such control that, to avoid a collision with any other person or with any other object, he can stop as quickly as might be required of him by eventualities that would be anticipated by an ordinarily prudent driver in like position.”
“There is no error in refusing to give a particular instruction when the trial court has included the same subject matter in other instructions.” Kornec v. Mike Horse Mining Co., 120 Mont. 1 at 12, 180 P.2d 252 at 258.
Although plaintiff’s offered instructions 5 and 6 may be a correct statement of the law, since the same subject matter was sufficiently covered in instruction 8 and the last sentence in number 20, the refusal of plaintiffs’ offered instructions 5 and 6 was not error. Instruction 8 reads as follows :
“Where two parties have an equal right to use a public highway, each must use it so as not to injuriously interfere with the other’s right, and each much exercise a degree of care commensurate with the danger of the agency that he himself is using.”
The last sentence in instruction 20 provides:
“But a person driving cattle on a public highway must act in a reasonable and prudent manner under the circumstances and a failure to do so constitutes negligence on his part.”
Plaintiffs contend that the court erred in giving instructions 12 and 17. Plaintiffs’ objection to instruction 17, at the time of settling instructions, and in this court, was that the instruction was not applicable since there was no allegation of certain negligence in defendant’s cross-complaint, to-wit, failure to drive at an appropriate reduced rate of speed when approaching a hill crest. Failure to allege that act of negligence was cured by the evidence that went in at the trial without objection. Schaff v. Shaules, 137 Mont. 357, 352 P.2d 265. Negligence in that regard was therefore a proper matter to submit to the jury by an appropriate instruction number 17. The same reasons apply to the giving of number 12 as apply to the giving of number 17. Further, the specific objection now urged as to number 12 was not made before the trial court and plaintiffs are now precluded from raising it here. Holland Furnace Co. v. Rounds, 139 Mont. 75, 360 P.2d 412. See R.C.M.1947, § 93-5101.
We have examined all of the instructions and find that taken as a whole they adequately state the applicable law. The charge to the jury must be read in its entirety, and a party cannot complain as to the giving of certain instructions where the entire charge states the law applicable to the case. Holland Furnace Co. v. Rounds, supra.
Next plaintiffs contend that a new trial should be awarded for irregularity in the proceedings. This is mainly based on a remark made by defendant’s counsel in closing argument. Plaintiffs claim that the remark was prejudicial. Plaintiffs did not move for a mistrial or for any other similar relief. Another jury instruction was asked for and given. In Herren v. Hawks, 139 Mont. 440, 365 P.2d 641, this court recently stated:
“A long line of cases in this state has established the rule that when a party fails to make a timely objection to an irregularity in the proceedings of the court, or to bring the court’s attention to the matter by a motion for a continuance or mistrial, then the irregularity is waived. ’ ’
We do not condone the conduct of defendant’s counsel, but since plaintiffs did not obtain an adverse ruling on the matter by the trial court, they are now precluded from a determination thereon by this court. See Hayward v. Richardson, 136 Mont. 241, 347 P.2d 475.
' Finally, plaintiffs argue that the award of punitive damages is not justified by the evidence and is excessive. The jury was instructed that they could award exemplary damages not in excess of $5,000 (the amount prayed for in the cross-complaint), if they found that the cattle were injured by reason of gross negligence in disregard of humanity. This was based upon section 17-408, R.C.M.1947, which provides:
“For wrongful injuries to animals, being subjects of property, committed wilfully or by gross negligence, in disregard of humanity, exemplary damages may be given.”
Under this provision it was within the province of the jury to fix the amount of exemplary damages. This court will not interfere with such a determination by a jury unless it appears to have been influenced by passion, prejudice, or some improper motive. Panisko v. Dreibelbis, 113 Mont. 310, 317, 124 P.2d 997. When an award of damages is wholly out of proportion to the wrong and its cause and it is so large that it cannot be accounted for on any other theory, the conclusion is inescapable that the award was measured by passion and prejudice of the jury. De Celles v. Casey, 48 Mont. 568, 576, 139 P. 586.
Under the facts and section 17-408, supra, it does not appear that the award of exemplary damages in this case is too large or wholly out of proportion to the wrong done so that we may hold that the award was measured by passion and prejudice of the jury. Accordingly we will not interfere with the determination by the jury on the amount of exemplary damages.
The judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR and JOHN C. HARRISON concur.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment of nonsuit in an action brought by plaintiff, appellant here, to recover damages for an alleged tortious interference with a contract of employment. The particular contract of employment alleged was an oral contract between an attorney and his clients. The plaintiff is an attorney.
The situation giving rise to this action was that on June 9, 1956, one James Foley died. On June 14, 1956, David Foley, the only issue of the deceased, telephoned the plaintiff asking to discuss a legal matter. James Foley then went to plaintiff’s home where he disclosed that his father had died, that he thought there was a will left, that he thought a will had been drafted by defendant while his father was in the hospital, that one Anna Connof had lived with his father twenty-three years and that he was confused as to his own legal position. He agreed to contact Anna Connof and come to plaintiff’s office the following day.
The following day, James Foley and Anna Connof came to plaintiff’s office. It was there that the alleged oral contract was made. At the trial of the canse, the plaintiff presented but two witnesses, himself and his law associate or partner. The motion for nonsuit was made and granted. If any oral contract was proven, it was on the basis of the following testimony of plaintiff:
“A. Well, of course, as a lawyer^ my first concern was to determine whether or not there was a Will, and Anna Connof stated that there was a Will, and that J. J. McDonald had drafted the Will while Mr. Foley, Senior, was in the Granite County Hospital, and she said that she believed that she was named the executrix of the Last Will. I asked her where the Will was, and she stated that the Will was in the possession of Mr. J. J. McDonald of Philipsburg. * * *”
and further:
“A. She [Anna Connoff] and Dave Foley both asked if I would represent them to probate the estate, and I said that I would. ’ ’
The complaint had alleged:
“That on or about the 16th day of June, 1956, the said David Foley and the said Anna Connof, without solicitation freely and voluntarily went together to the law office of the plaintiff, Wade J. Dahood, and after extended discussion of the matter, both of them retained and made contract with the said plaintiff, Wade J. Dahood, to represent them as heirs of the estate of James Foley, deceased, and to do all things necessary to probate the said estate.”
Yet, in the reply brief we find this statement: “The contract which was breached was with the Executrix only and that contract required that the will be upheld. ’ ’
Notice the testimony heretofore recited to the effect that the parties had not seen a will and were not sure of its contents. So, we ask, what contract was made and with whom before we can even consider whether there was a breach, tortious or otherwise ?
To further clarify our inquiry we note that Anna Connof and Dave Foley paid the plaintiff $100 and $150 respectively so that any fees for legal advice were taken care of. The question is not as to a contract such as for legal advice, but as a contract to probate the estate. Many problems appear, but we shall look to but one facet of the situation.
The contract, as alleged and as sought to be proven, was that plaintiff would represent both Anna Connof and Dave Foley as heirs and probate the estate. With the circumstances of a natural son and a possible common-law wife situation “standing out like a sore thumb ’ ’ at the time the alleged contract was made, the interests of Anna Connof and Dave Foley were diametrically opposed. At the time of the conversation, not knowing with certainty if there was a will, or if the will was in existence what its terms were, or if an executor was named, plaintiff could not and did not make a definite promise as to which or whom he would represent. The various conflicting situations are apparent without discussion. Plaintiff’s promise had to be what might be termed an illusory one. His promise to perform reserved the option in him to determine who he would represent depending upon various eventualities. That this cannot be a binding promise, and thus a failure of consideration for a contract, seems clear. (See 137 A.L.R. p. 919 note.)
, Thus we hold that the plaintiff failed to prove a contract which was a necessary matter to be proven. In making this determination we are aware that in considering a motion for non-suit, the evidence is to be viewed in the light most favorable to the plaintiff. (Welch v. Nepstad, 135 Mont. 65, 337 P.2d 14.)
Also in Nissen v. Johnson, 135 Mont. 329, 333, 339 P.2d 651, 653, the rule on nonsuit is stated:
“No case should be taken from a jury on a motion for nonsuit where there is substantial evidence to support the complaint but only where from the undisputed facts it appears as a matter of law that recovery cannot be had on any reasonable view of the established facts.
Here, the district court was correct in determining as a matter of law that no case was proven. No contract, as alleged, was shown to exist, and, before any other consideration to the case can be had, this was a necessary element.
Because of what has been said, the judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, DOYLE and JOHN C. HARRISON concur.
|
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PER CURIAM.
The defendant, appearing pro se, has applied to the Chief Justice for a certificate of probable cause as provided under section 94-8109, R.C.M.1947.
There is no showing in such application that such a certificate was denied by the District Court, but in any event defendant is represented upon his appeal by Court-appointed counsel and all matters in this cause should be presented by such counsel and not by the defendant appearing personally.
The application is denied.
|
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MR. JUSTICE DOYLE
delivered the Opinion of the Court.
This action seeks a declaratory judgment construing an oral farm lease. The cause was tried before the court sitting without a jury. Judgment was entered for the plaintiff and defendants have taken this appeal.
Prom the record it appears that for a number of years the plaintiff had leased certain farm land from the defendants under an oral crop sharing arrangement. In the Fall of 1958 the parties had several conversations regarding their oral lease. The defendants contend that they asked the plaintiff to farm some additional land, but that plaintiff advised them he was through. The defendants thereafter informed the plaintiff that they had another tenant to farm the land. Defendants further contend that plaintiff evidenced his intention to terminate the lease by proceeding to move all his personal property and farm machinery from the premises.
The plaintiff’s version of the conversation was that he had never been told definitely that his lease was terminated, and that he was led to believe he could have another year. Both parties agree that the defendants were to be entitled to the 1959 crop which had been planted in the Fall of 1958.
The controversy which resulted in this lawsuit arose in 1959 when both the plaintiff and the defendants’ new tenant began to farm the land in question.
After the trial the court made findings of fact, conclusions of law, and a judgment and entered them as one document.
The defendants failed to take exceptions to the findings as required by section 93-5306, R.C.M.1947. Plaintiff cites the well-established rule that the findings must be excepted to before the trial court will be put in error. However, defendants attack the findings for what they declare, not for the absence of findings or because of omissions in the findings, and in such ease the rule contended for by the plaintiff has no application. Atlantic-Pacific Oil Co. v. Gas Development Co., 105 Mont. 1, 69 P.2d 750.
The defendants have assigned many specifications of error. The principal argument advanced is that there were so many errors and inconsistencies in the findings and judgment that the trial court could not have fully understood or appreciated the facts or law involved in the ease.
Both parties admit that the court’s computation of the num ber of acres of summer fallowing done by the plaintiff is in error. After assuring this court that the computation was merely a matter of simple mathematics, both parties added up the acreage and both came to different results. On the North Place the trial court found plaintiff did 634 acres of summer fallowing; defendants found 380.1 acres; and plaintiff found 598.6. There is a similar discrepancy involving another parcel of land known as the West Place.
As to the court’s finding as to the date the oral lease was entered into, the finding of fact was that the oral lease was entered into “in the Spring of 1948, in the month of March.” The undisputed testimony is that defendant did not own the land in question at that time. The error is compounded by the conclusion of law which states the lease was entered into in “March 1951”, and the judgment which states the lease was entered into “prior to the year 1950.”
The court went outside the record in making findings as to matters occurring after the trial of the case. This ease was tried in September 1960, yet it was found as a matter of fact that plaintiff could not seed the land to barley in the Spring of 1961.
The court in several other instances of varying importance made findings on which there was no evidence or where the uncontradicted evidence was in conflict with the findings and judgment. It will serve no purpose to set out these matters in detail since at least some of them are not material to the merits of this lawsuit. However, these erroneous discrepancies in the findings and judgment and the confused state of the record lend credence to defendants’ contention that the correct theory of the case was misunderstood or misapplied.
Plaintiff, on the other hand, urges that these errors are relatively unimportant or immaterial and that under section 93-216, E.C.M.1947, this court may correct them. We find that the record is in such condition that neither this nor any other court could effect the necessary corrections.
A great deal of the confusion and inconsistency in this case arose because of a failure to establish the term of the lease. Plaintiff alleged the lease ran from harvest to harvest. Defendants testified it ran from the beginning of the calendar year to the end of the calendar year. The trial court made no findings on this point.
As in the case of any contract, the term of the lease was a matter of agreement between the parties. There was no testimony in this case that the parties had ever mutually made an agreement. In fact the plaintiff testified there never was an agreement as to the term of the lease. In the absence of an agreement or usage on the subject the hiring “is presumed to be for one year from its commencement.” R.C.M.1947, § 42-203. We find the evidence was entirely insufficient to show either a mutual agreement or usage and the record is completely confused as to when the lease commenced.
This failure to establish the lease term has lead to some bizarre results. Plaintiff contends written notice is required before the lease can be terminated. He cites in support of this proposition section 93-9703, subd. 2, R.C.M.1947, which provides that in the case of agricultural lands there must be a “demand of possession or notice to quit” if the tenant “retained possession for more than sixty days after the expiration of his term.” In this case the failure to establish the term of the lease makes the law impossible to apply.
It is our further observation that all the facts brought forth in this case derive their significance from their relation to the expiration date of the lease. Without such date the case is hopelessly confused.
We do not wish to appear overly critical of anyone engaged in the trial of this lawsuit. An oral contract between laymen presents a difficult case at best, and this particular case was extremely nebulous.
We find ourselves in this case faced with the same problem as in the case of Horst v. Staley, 101 Mont. 543, 549, 54 P.2d 876, 878, where this court stated:
“* * * Ordinarily, in equity cases, where a judgment, cannot be supported or sustained, this court may review alL the evidence and direct the entry of a proper judgment. [Citing' statute.] Here we believe that such a course is not wise. [Citing case.] The evidence upon some of the important points involved is very meager and confused. Therefore, in the circumstances as presented, we think that there should be a new trial of the cause, and thereupon the district judge will have an opportunity of seeing and hearing the witnesses, and will be in a much more advantageous position to determine correctly the-issues than this court.”
In light of our disposition of this case we do not deem it-necessary to decide other questions raised on this appeal.
For the foregoing reasons the judgment is reversed and the' cause remanded with instructions to grant a new trial.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, CASTLES and JOHN C. HARRISON concur.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment of the fourth judicial district, which judgment affirmed an order of the Industrial Accident Board awarding compensation to the claimant for 500 weeks at $40 per week.
On December 16, 1960, Gerald W. Biggs was killed in a truck accident near North Fork, Idaho. Biggs was an employee of the defendant, Theis and Bush, and was killed in the course of his employment. Theis and Bush is a trucking partnership. The employer had industrial accident insurance coverage in both Montana and Idaho, and to each state was reported fifty percent of the employee’s wages and the premium paid accordingly.
The claimant is the widow of Gerald Biggs. There is no-question but that she is entitled to compensation, but the question is in which state and thus against which insurance carrier. The death was in Idaho, but the family were residents of Montana working for a Montana concern which had a different insurance carrier in each state; and as the insurance payable in Montana was double that which ivas payable in Idaho, the claimant elected to file her claim in Montana.
A hearing was held on the claim and on May 22, 1961, the Montana Industrial Accident Board awarded compensation. The employer’s Montana insurance carrier appealed to the district court where the court affirmed the order of the Board. The carrier then appealed to this court.
On appeal amicus curiae favored the Court with a brief in the matter.
The only question presented on this appeal is whether under the facts of this case, the claimant can receive compensation under the Workmen’s Compensation Act of the State of Montana for the death of her husband which occurred in Idaho.
The employer was a partnership composed of Richard A. Theis and Joe Bush, the principal places of business and headquarters of which were in Missoula and Hamilton, Montana. The partnership was engaged in the business of contracting for the hauling of logs from the timber site to the mill site and of hauling lumber. The partnership owned and operated five logging trucks and one lumber truck. At the time of the accident, the partnership had one hauling contract going in Missoula and a second one going in the area between -Darby, Montana, and Salmon, Idaho. The standing timber was cut in Idaho on a timber sale being logged by one Rossignol and the resulting logs were hauled by the partnership either to Darby or to Salmon to sawmills located in each town, depending upon whether the logs were fir or pine. The testimony indicates that the stand was a mixed stand and about one-half of the species was fir which was milled at Salmon and about one-half ivas pine which was milled at Darby. At the time of the accident the logging was being done mainly in fir so that most of the trips were to Salmon. In the month of December when the accident occurred, only eight loads, two of which were hauled by the decedent, went to Darby while fifty, seventeen of which were hauled by decedent, went to Salmon.
Between Salmon, Idaho, and Darby, Montana, the highway crosses the state line. The accident occurred about twenty-nine miles by road within the State of Idaho, and about seventy-five miles from Darby, Montana. It occurred during a trip from the logging area within Idaho to the mill at Salmon, within Idaho.
Biggs was employed at Hamilton, Montana, on October 24, 1960. He picked up his employers’ truck at Darby, Montana, and drove to Idaho where he would at times be required to stay overnight either at the scene of the logging or in Salmon. He never maintained any residence except at his home in Hamilton where he returned every week end and sometimes more often. He accomplished maintenance of the truck in Hamilton or Darby. He was considered a permanent employee and subject to transfer to any of the employer’s job sites.
The employer paid Biggs by a check drawn on a Montana bank. For payroll purposes Biggs was treated as a Montana resident; Federal withholding taxes were paid to Helena; state withholding taxes to Helena; Unemployment Insurance was reported to Helena and not to Idaho.
In Idaho the employer did carry industrial accident insurance. There the Argonaut Insurance Company carried the coverage. The employer had about fifty-two percent of his truck mileage in Idaho, the balance in Montana; and on an arbi trary basis half of the payroll was reported to the Idaho carrier and half to the Montana carrier, with each employee being listed on the report to both states.
From all of the foregoing, it can fairly be said that the job of hauling logs being performed by Biggs was neither exclusively in Idaho nor exclusively in Montana. The employers are residents in Montana in every sense, even though they on occasion bid on contracts to be performed outside the state.
At the time of the accident, all of their employees were Montana residents, including Biggs. The contract of employment was in Montana and required duties in both Montana and Idaho.
In State ex rel. Morgan v. Industrial Accident Board, 130 Mont. 272, 300 P.2d 954, this court held that the Montana Workmen’s Compensation Act does have extraterritorial effect in a proper case. Our Act does not have an express extraterritorial effect clause, and in the Morgan case the dissenting opinion challenged the holding as being “legislation” by the court. However, three legislative sessions have intervened without any action by the Legislature.
Prior to the Morgan case, this court in State ex rel. Loney. v. Industrial Accident Board, 87 Mont. 191, 197, 286 P. 408, 410, said:
“While section 2847 [Revised Codes 1921, now R.C.M. 1947, § 92-301] declares: ‘This act is intended to apply to all inherently hazardous works and occupations within this state.’ we do not see that this necessarily excludes its operation beyond the limits of the state where the employee, in the furtherance of his employer’s business which is localized in Montana, and which he is following in passing over the state line, meets with an accidental injury.”
The court in the Loney case was speaking about the business being localized in Montana and the employee passing from Montana into Glacier Park.
It has been settled by the Morgan case, supra, that the Mon tana Workmen’s Compensation Act does have extraterritorial effect in a proper case. In the Morgan case, the employer was a road contractor domiciled in Montana and following the practice of bidding on various road jobs in and out of Montana. The contractor was performing work on a localized Montana contract through the summer months during the time Morgan was employed. During the summer Morgan voluntarily laid off for a while. Before Morgan’s return to the job, the contractor had bid in and had gotten a small road job in the State of Idaho. Concurrently with the Idaho job, the contractor had another job in progress in Montana which involved the construction of a road between Superior, Montana, and the Diamond Match Company’s property in Montana. These two were entirely separate and distinct contracts and units of work. They were separated by a considerable distance. The Idaho contract was a complete contract and unit of work to be performed and completed exclusively and entirely in Idaho. It had nothing to do with any work in Montana. On that point, the Morgan case differs from the present case and to that extent provides even less basis for applying the Montana Compensation Act than does our present ease. To state the matter conversely, there is more reason for applying the rationale of the Morgan ease to the facts in the instant ease than to the facts in the Morgan case itself. In the present case a substantial and significant part of the work connected with carrying out the Rossignol contract had to be and was performed in Montana. In addition to all of the foregoing the employers are residents of Montana and their business is localized in Montana in every sense of the word notwithstanding the fact that they do on occasion bid on contracts to be performed outside the State of Montana. At the time of the accident, all of their employees, not just Biggs, were Montana residents, although only the residence of Mr. Biggs is of significance here. The contract of employment was made in Montana and, as above stated, the contract of employment required the performance of duties by Biggs both in the State of Idaho and in the State of Montana. In the Morgan case, 130 Mont. at pp. 282, 285, 300 P.2d at pp. 960, 962, this court said:
“The Board vigorously argues that our Workmen’s Compensation Law, being compulsory, is not contractual and that it can have no extraterritorial application, that only under an optional law could it be so, if at all. The contentions of the Board are entirely too sweeping. Our Act is based upon the employer-employee relationship as well as being contractual. Compare Restatement, Conflict of Laws, § 398, p. 486, 1948 Supp., p. 149, and at p. 150, where it is stated: ‘The interest of the state, however, in the employer-employee relationship or in the regulation of local enterprise, is sufficient to empower the state to allow recovery, even though the contract of employment and the injury took place outside the state.’ Here, however, the work and labor of relator in Idaho, being only temporary and merely incidental to his employment and entirely for the benefit of and incidental to his employer’s business in Montana, brings this case within the purview of Altman v. North Dakota Workmen’s Compensation Bureau, 50 N.D. 215, 195 N.W. 287, 290, 28 A.L.R. 1337, relied on heavily by the Board. * * *
“ The .relation between Johnston E. Morgan and the Union Construction Company was created by the law of Montana, and as long as that relation existed its incidents were properly subject to regulation in Montana, for both Morgan and the company were at all times residents of Montana; the company’s only office and place of business was located at Missoula, Montana; the contract of employment was made at its office in Missoula, Montana; and the employee Morgan’s duty as an employee required him to go into Idaho temporarily in response to the orders given him by the company at its Montana office.
“The purpose of our Act, as is true of the workmen’s compensation laws of most other states, is to provide, in respect to persons residing in and businesses located in Montana, a rem edy which is presumed to be expeditious and independent of proof of fault, and also for employers a liability which is limited and determinate. The interest of Idaho, if any, in this case would be only casual, neither of the parties herein being resident there, and under the laws of Idaho (which were not called to our attention) it could easily be that Idaho would reject this claim. Compare Bradford Elec. Light Co., Inc. v. Clapper, supra [286 U.S. 145, 52 S.Ct. 571, 76 L.Ed. 1026], and cases cited therein.
“The public policy of Montana is well established in that under the facts in-this case, where employer and employee are resident in this state and such relationship is entered into in Montana, the Montana law applies. Under such circumstances Montana does not waive nor subordinate its domestic policy and jurisdiction to the laws of any other state. It would not only be obnoxious to our policy and law under the facts here to deny such employees the right to apply for and receive compensation, but it would be against the policy and interests of Montana. To deny jurisdiction here would require this injured workman, if he has funds for such expense, together with his doctors, the hospital, the special nurses and the druggist, all of whom contributed to his treatment, to journey to a foreign jurisdiction and there take their chances of having their claims rejected, leaving the injured workman and his family as a charge on the Montana community in which they reside. To deny jurisdiction in this case would be a disservice to the injured workman, his dependents, and those waiting for their payments, the community and to Montana, and would do violence to the very nature of the Workmen’s Compensation Act, which is protective legislation for each of the above.”
From the foregoing quoted portions of the Morgan case it is seen that we have recognized what Larson on Workmen’s Compensation refers to as a “legitimate interest”. (See 2 Larson on Workmen’s Compensation Law, pp. 370 to 372.) Montana was the state wherein Biggs and his wife and children resided and is the state where the widow and children still reside. Montana is the state which will provide for the support and care should they become public charges. Montana has every interest in the claim except the situs of the accident itself.
We should note that, as pointed out by brief and oral argument, the statement in the Morgan case to the effect that it could easily be that Idaho would reject the claim is without foundation, but this would have no bearing on this case.
For the foregoing reasons the judgment of the district court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, JOHN C. HARRISON and DOYLE concur.
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment and decree of the district court of the tenth judicial district sitting without a jury. The action was brought by the plaintiffs, appellants here, for unlawful detainer of certain rental property used to conduct a meat business and for treble rent as damages. Judgment was for the defendant.
The plaintiffs generally will be referred to as the landlord. The defendant respondent as the tenant. Roseneau Foods, Inc., is the successor in title to the property from the Fergus County Creamery, Inc. Part of the Creamery’s property involved here, was used for a creamery and part was used for a meat processing department.
On April 1, 1957, the tenant entered into possession of the last-mentioned property to conduct a meat processing and selling business. The tenancy was pursuant to an oral agreement alleged to be for three years with an option to continue for another two years. In August 1957 the tenant proposed a written lease which the landlord, through its president, William Dissly, refused to execute. The record indicates that the reason for this was that the landlord wished to sell the premises, and it was felt that a lease would hinder a sale. The tenant testified over objection that at the time the written lease was offered, William Dissly, since deceased, stated “Floyd, three years would be too long for us to tie up the place, we might want to sell it, but you will always have a year — plenty of time to get out.” The tenant continued in possession and was in possession when this action was commenced.
The record shows that rent was paid at the rate of $300 a month with no advanced payments made until April 1959. From that time on payments were made as follows: April 1959, $900; June 1959, $900; September 1959, $900; January 1960, $900; March 1960, $900; April 1960, $900; May 1960, $300. The landlord’s secretary-treasurer, who is also its accountant, testified that the afore-mentioned rental payments were accounted for on a monthly basis. The landlord’s president, Howard Dissly, requested the payments in advance, and upon cross examination testified that at the time the rent payments were requested, there was no discussion concerning the tenancy, and no thought was given as to the date the rent was paid up to; it was just more money on the rent.
This action was commenced on November 7, 1960. Tenant was given a notice on September 28, 1960, to quit the premises by October 31, 1960. A three-days notice was given on November 1, 1960.
The tenant in his answer to the complaint filed a cross complaint in which he alleged that the bringing of the unlawful detainer action constituted a breach of an implied covenant of quiet enjoyment, and sought treble rent and attorney’s fees as damages.
The trial court found, in part, that rent was paid on a monthly basis; that the business fluctuated seasonably each year; that there was no claim of default in the payment of rent; and that the tenant established a name, telephone listing, and accounting system for the business different from those previously used. The court then concluded that the tenancy created by the oral agreement between the plaintiff’s predecessor in title and the defendant was a tenancy from year to year. It was decreed that the tenant was entitled to possession at the time the action was commenced, that plaintiffs take nothing by their complaint, and that the tenant recover costs and disbursements in the sum of $10.50.
The first question presented by appellants’ specifications of error is whether the court erred in finding that rent was paid on a monthly basis and then in concluding that the tenancy created by the oral agreement was a tenancy from year to year.
The propriety of the landlord’s action depends upon the nature of tenancy. If the oral agreement or lease was valid, as will be discussed later, the tenant was entitled to possession until the proper termination thereof, i. e., to April 1961. However, if the lease was invalid under the statute of frauds, and the nature of the tenancy resulting therefrom would produce the same result, it is immaterial to determine whether or not the lease was invalid under the statute. The determining question then is what was the nature of defendant’s tenancy at the time the action was brought and not whether or not the lease was invalid under the statute of frauds. For the purpose of this point in our decision we will assume that the lease was invalid under the statute of frauds.
It has been stated by this court that entry under an invalid oral lease creates a tenancy at will. Centennial Brewing Co. v. Rouleau, 49 Mont. 490, 143 P. 969. However, this may not be true in every case. Entry by a tenant under an invalid oral lease may create a tenancy from year to year, month to month, or a tenancy at will depending upon the circumstances. 3 Thompson, Real Property, § 1021 (4th ed. 1959).
R.C.M.1947, § 42-203, provides: “A hiring of real property, other than lodgings and dwelling houses, in places where there is no usage on the subject, is presumed to be for one year from its commencement, unless otherwise expressed in the hiring.”
The property in question was not a lodging or dwelling house. There was no testimony of any usage on the subject. Therefore, when the tenant entered on April 1, 1957, his hiring of the property was presumed to be for one year from its commencement. The statute contains nothing about a need for an expression in writing. Thus, under this section it would be possible to have an oral lease for at least one year without an expression as to time therein. This would be consistent with our statute of frauds, R.C.M.1947, § 13-606, which voids an oral agreement for the -leasing of realty of a period longer than one year.
Likewise, under our statute of frauds an oral lease for more than a year would be invalid, and evidence of the agreement and secondary evidence of its contents could not be introduced. R.C.M.1947, §§ 13-606 and 93-1401-7. The result then in the present ease under section 42-203, supra, absent other circumstances, would be a tenancy for a year because there would be no expression of time to rely upon in an invalid oral lease.
Notice that section 42-203 provides that the hiring is presumed to be for one year. This presumption is not listed as a conclusive presumption in section 93-1301-6 so it is therefore rebuttable. R.C.M.1947, § 93-1301-5. If the presumption is not controverted, the facts must be found according to the presumption, or, if it is controverted, the presumption must be given weight as evidence. Lewis v. New York Life Ins. Co., 113 Mont. 151, 124 P.2d 579; Dial v. Dial, 131 Mont. 310, 310 P.2d 610.
The trial court concluded that the tenancy was from year to year, and we will not now overturn that conclusion. The facts show that the meat business of the tenant had seasonal variations so that it would take a year to balance out the ups and downs. Both the landlord and the tenant were aware of this. The very nature of the business and the way that the parties carried on their relationship indicates that the tenancy was not regarded as strictly from month to month. The only indication of a month to month letting was the fact that a greater part of the time the rent was paid monthly. Considering all of the circumstances we do not think that the fact rent was paid on a monthly basis is the controlling factor. Payment of a monthly rental does not compel the conclusion that a tenancy is from month to month where other facts indicate to the contrary. Giovanetti v. Sehab, 41 Mont. 297, 109 P. 141; Aaker v. Smith, 87 Cal.App.2d 36, 196 P.2d 150, construing Cal.Civ. Code, § 1943, which was then identical to R.C.M.1947, § 42-203.
The finding of the trial court that the rental rate was established on a monthly basis was not inconsistent with the court’s conclusion that the tenancy was from year to year. Moreover the acts of the landlord, in requesting and taldng payments of future rent without agreement as to their nature, were inconsistent with circumstances which would indicate a tenancy from month to month. Accordingly, the fact that rent was paid on a monthly basis does not control. The presumption created by section 42-203 plus the reasonable inferences from the facts support the conclusion that the tenancy was for one year.
R.C.M.1947, § 42-205, reads: “If a lessee of real property remains in possession thereof after the expiration of the hiring, and the lessor accepts a rent from him, the parties are presumed to have renewed the hiring on the same terms and for the same time, not exceeding one month, when the rent is payable monthly, nor in any ease one year.”
As pointed out, section 42-203 as applied here created a tenancy for one year. Section 42-205 applied with section 42-203 created a presumption that the tenancy was renewed on a year to year basis. While it is true that section 42-205 presumes a renewal on the basis of a monthly rental period, it is also clear that the section provides that the implied renewal period may be presumed to be for a year, but not in excess of that period. Sections 42-203 and 42-205 applied to the facts in the instant case support the conclusion that the tenancy was initially for a year with implied renewals for one year resulting in a tenancy from year to year.
Further, it may be pointed out that the first three years of the tenant’s occupancy have been fully executed. As to those periods already executed, our statute of frauds has no application. Wells v. Waddell, 59 Mont. 436, 196 P. 1000; Besse v. McHenry, 89 Mont. 520, 300 P. 199.
As already pointed out a one year oral lease is not within the statute, and a continnons renewal thereof under section 42-205 would also not be within the statute. If the entire agreement must be considered as a unit, the more than three years part performance would take the case out of the statute. Under any theory the statute has no application.
This brings us to the question of whether the landlord’s action and the giving of notices precedent thereto were proper. From the foregoing it can be seen that the tenancy was from year to year and the tenant was, therefore, in lawful possession when plaintiffs served their notices to quit. The tenancy could not possibly have been terminated under the circumstances before April 1, 1961. A notice to quit pursuant to section 42-206 was not given thirty days prior to April 1, 1960. The tenancy was then deemed to be renewed for another year.. R.C.M.1947, § 42-206. An action in unlawful detainer cannot be maintained under section 93-9703 if the tenant is lawfully in possession under a tenancy from year to year without first giving notice thirty days prior to the anniversary date of the tenancy.
Respondent tenant contends that he may recover treble rent as damages by way of cross-complaint for breach of an implied covenant of quiet enjoyment. We do not hold that such a covenant exists in this case. Assuming that one did exist, the tenant cannot recover under his theory. A suit brought by a landlord to obtain possession of the premises does not constitute a breach of a covenant of quiet enjoyment unless the suit was instituted maliciously and without probable cause. Agar v. Winslow, 123 Cal. 587, 56 P. 422; Black v. Knight, 176 Cal. 722, 169 P. 382, L.R.A.1918C, 319. This contention merits no further comment.
Respondent also contends that attorney’s fees should have been entered against the landlord as damages. Respondent cites no authority in support of his claim, nor can this court find any. On the contrary, the general rule is that attorney’s fees are not recoverable by a successful litigant either in law or equity except when they are expressly provided for by contract or statute. See State Highway Comm’n v. Heltborg, 140 Mont. 196, 369 P.2d 521.
R.C.M.1947, § 93-8616, provides for allowable costs. Under that section the list of items is exclusive except as to cases taken out of its operation by special statute, by stipulation of the parties, or by rule of court. McBride v. School Dist. No. 2, 88 Mont. 110, 290 P. 252.
No special statute applies here and the parties did not stipulate or contract as to payment of attorney’s fees. Attorney’s fees are not recoverable here either as damages or as costs.
We have examined appellants’ other specifications of error and find that they do not merit consideration in view of what has already been stated in this opinion.
For the foregoing reasons the judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR and DOYLE concur.
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PER CURIAM.
Original Proceeding. This proceeding was initiated by the filing of a Petition for Writ of Error Coram Nobis by Gerald F. Davis, an inmate of the Montana State Prison, appearing pro se.
Under the general rule as set forth in previous opinions of this court, jurisdiction of this writ is in the court which rendered judgment and where the record is. See Butler v. State, 139 Mont. 437, 365 P.2d 822, and cases therein cited.
Petitioner alleges, however, that he has directed such a petition to the district court and such court has refused to act thereon. Since this is the sixth proceeding brought before this court by the petitioner we are quite familiar with his previous contentions and with the records of the district court which we have consulted on many occasions, and for that reason we have examined the petition and it appears to be merely a reiteration of contentions made in previous applications for writs, none of which are meritorious. Doubtless it so appeared to the district court.
The petition is denied and the proceeding ordered dismissed.
|
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PER CURIAM.
Petition for writ of error coram nobis filed herein by James H. Irvine, an inmate of the Montana State Prison, appearing pro se.
Petitioner avers that he is of Indian blood, an enrolled member of the Confederated Salish and Kootenai Tribes and a ward of the Federal Government. He further alleges that he was charged and convicted of the crime of burglary in the District Court of Missoula County. It is contended by petitioner that such crime was committed in Indian country within the boundaries of the Flathead Indian Reservation and in support thereof he cites the Hell Gate Treaty of July 16, 1855, 12 Stat. 975, and quotes therefrom the boundaries of the lands ceded to the United States. The word “cede” is defined as meaning “to give up”, “to grant as by treaty”, and petitioner has not appreciated that the description he quoted from the treaty covers the lands given up and granted to the United States and which were thereafter excluded from Indian country. The treaty further describes the boundaries of the lands retained as Indian country and now designated as the Flathead Indian Reservation.
Investigation discloses that the crime with which petitioner was charged was committed at a tavern approximately ten miles west of the City of Missoula, many miles away from the Reservation.
Since the petition discloses no grounds for issuance of the writ we dispense with our practice of referring it to the District Court and order it dismissed.
It is so ordered.
|
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MR. JUSTICE DOYLE
delivered the Opinion of the Court.
This is an appeal from a judgment entered in the district court of the thirteenth judicial district. The cause was tried before a jury which returned a verdict for the defendants.
Plaintiff, Emma Maxwell, was injured on January 1, 1959, as the result of a fall in a doorway of the home of the defendants at Billings, Montana. The defendants are the son and daughter-in-law of the plaintiff.
Plaintiff had a New Years dinner for the defendants and others earlier in the day and the defendants held a family get together at their home on New Years evening, the time of the accident. The plaintiff was asked to attend. The evidence established that there was snow on the step of defendants’ home when plaintiff arrived there. Plaintiff stepped up onto the step, and when the door was opened she placed her foot on the floor inside the house. Her foot started to slip, apparently, because the floor was freshly waxed and because she had snow on her overshoes. Plaintiff testified that when she started to slip she tried to catch herself on the right foot still located on the step, but the right foot slipped out from under her causing her to fall in the doorway.
There is a controversy over whether the proximate cause of the fall was the waxed floor or the slippery step. Defendants claim the cause of the fall was the slip inside the house. In support of their position they cite the testimony of the plaintiff, on cross-examination, to the effect that the slip that started it all was inside the house, and from that moment she was out of control.
Plaintiff urges that the fall was caused by a layer of ice under the snow on the step. However, there was no direct testimony that there was any ice on the step. The illusive layer of ice will remain forever a matter of speculation. Although both plaintiff and her husband testified to the effect that they thought there must have been ice under the snow, there was no testimony as to anyone actually determining whether ice was there or not.
For their part, defendants offered a great deal of testimony and statements regarding minimum and maximum temperatures, and snow and ice conditions to prove that the formation of ice was unlikely.
The principal issue on which this case must be decided is the status of the plaintiff as she entered the home of her son and his wife on the evening in question.
The plaintiff cites as error the refusal of the trial court to submit the case to the jury on the theory that at the time of the injury plaintiff was an “invitee” as a matter of law.
The rule is well established that a question will not be taken from the jury, as the trier of facts, where there is conflicting evidence or where more than one conclusion can be drawn from the evidence.
The trial court left to the jury the question whether plaintiff was a licensee or an invitee. The term licensee includes social guests, “who, in a sense, are persons temporarily adopted into the possessor’s family. ’ ’ Restatement, Torts, § 331, p. 897. The jury found that plaintiff was a social guest or licensee.
Plaintiff urges that she was not a social guest in the home of her son and his wife. Plaintiff testified that she went to the home of the defendants at the request of her daughter-in-law for the purpose of fixing supper for the guests, to clean up dishes, and possibly to take care of several minor children in case defendants went out for the evening. Defendants contend that plaintiff was a social guest and that any help she would have given would have been the customary and incidental help extended each other by members of a family on such occasions in the preparation of a holiday meal.
In Ahlquist v. Mulvaney Realty Co., 116 Mont. 6, 24, 152 P.2d 137, 145, this court set out the time honored distinction between an invitee and a licensee, as follows:
"The plaintiff alleges she was an invitee. The defendants claim plaintiff was a licensee. The definition used by many judges in reported cases, distinguishing between an invitee and a licensee or trespasser is: ‘The principle appears to be that invitation is inferred where there is a common interest or mutual advantage, while a license is inferred where the object is the mere pleasure or benefit of the person using it.’ [Citing cases.] And this definition has been adopted by this court in the case of Jonosky v. Northern Pac. Ry. Co., 57 Mont. 63, 187 P. 1014, 1015, wherein this court defined the term ‘invitation’ as follows: ‘An invitation is inferred where there is a common interest or mutual advantage, while a license is implied where the object is the mere pleasure, convenience, or benefit of the person enjoying the privilege. Bennett v. Louisville & N. R. Co., 102 U.S. 577, 584, 26 L.Ed. 235; [See also, Rose’s U.S. Notes.] 2 White on Personal Injuries on Railroads, § 870. The Supreme Court of Massachusetts has stated the rule as follows: "To come under an implied invitation as distinguished from a mere license, the visitor must come for a purpose connected with the business in which the occupant is engaged or which he permits to be carried on there. There must at least be some mutuality of interest in the subject to which the visitor’s business relates, although the particular thing which is the object of the visit may not be for the benefit of the occupant.” [Citing cases.] The same distinction is made by the English courts.’ ”
Thus, it was the purpose for which plaintiff went on the defendants’ premises that determines her status. If she went there to perform services for her son and his wife then she might be found to be an invitee. But if she went to the holiday meal as a guest and was only to perform any customary and inci dental chores then she was a licensee. From our review of the record we find that there were conflicts in the testimony on this point, but more important, different conclusions could be reached from the testimony which was uncontroverted. We therefore find that there was a proper jury question and the court did not err in submitting it to the jury.
The plaintiff relies on McCulloch v. Horton, 102 Mont. 135, 56 P.2d 1344, where a party, who was originally a social guest, was injured while holding open a garage door at the request of the host. This court found the injured party was an invitee at the time of the injury.
The McCulloch case is distinguishable from the case at bar. In the case at bar, plaintiff was neither performing a service for defendants at the time of her injury nor was there any active negligence involved on the part of the defendants. Moreover, in the McCulloch case, unlike the case at bar, there were no facts regarding the determination of the plaintiff’s status which were to be determined by the jury.
The jury having concluded that plaintiff was a social guest or licensee our next question is to determine what duty the defendants owed to her.
The court instructed the jury that “the defendants owed her only the duty to refrain from acts of willful and wanton negligence.” Plaintiff objected to this instruction on the ground it did not include the duty to warn licensee of hidden or latent perils which might cause a person so coming upon the premises to be injured.
The duty to a licensee is generally stated as the duty to refrain from acts of willful and wanton negligence. McCulloch v. Horton, 102 Mont. 135, 56 P.2d 1344; Montague v. Hanson, 38 Mont. 376, 99 P. 1063. However, in certain cases the rule is enlarged.
In 38 Am. Jur., Negligence, § 117, the duty to a social guest is stated as follows:
“* * * There is no duty on the part of the host to reconstruct or improve the premises for the purpose of making his house more convenient or more safe for those accepting his hospitality, gratuitously extended. The guest assumes the ordinary risks which attach to the premises. No exception is made to the rule because of the fact that the guest enters on the host’s express invitation to enjoy his hospitality. * * * A better reason for the rule is that a host merely offers his premises for enjoyment by his guests with the same security that the host and the members of his family who reside with him have. However, the rule is that a host who knows of a concealed danger upon the premises is guilty of negligence if he permits the guest, unwarned of the peril, to come in contact therewith, and he may be held liable to the guest for an injury thus sustained. ’ ’
The question in this case is whether there was sufficient evidence to instruct on the issue of a hidden peril. The waxed floor of defendants’ home, which was at least the partial cause of the fall, can not be considered hidden peril. Plaintiff contends that the ice under the snow of defendants’ front step constituted a hidden peril.
In 65 C.J.S. Negligence § 38, a statement is made regarding hidden perils as follows:
‘' ° * * an owner or person in charge of premises ordinarily is not under any affirmative duty to give licensees warning of concealed perils although he might, by the exercise of reasonable care, have discovered the defect or danger which caused the injury. However, he owes a duty not knowingly or willfully to let the licensee run into, or expose him to, a hidden danger or peril”. Emphasis added.
There is no evidence in the record, within the meaning of the above rule, that defendants knowingly or willfully exposed the plaintiff to a hidden peril.
Appellants contend that the court erred in refusing to give its offered instruction No. 10 which in substance was that a person exercising ordinary care has a right to assume that others will do likewise and that appellant was not negligent in failing to anticipate injury which could come to her from the violation of a duty of another.
This instruction was properly refused by the trial court.
Appellant further complains of the refusal to give her offered instruction No. 11 which is as follows: “You are instructed that the duty to keep premises safe for an invitee extends to all portions of the premises which are included within the invitation and which it is necessary or convenient for the invitee to visit or use in the course of the business for which the invitation was extended, and at which her presence should reasonably be anticipated. ’ ’ This was a matter for the jury to decide as to whether the appellant was a social guest or an invitee. The matter was covered adequately in other instructions given by the court to the jury.
Appellant further complains of the refusal of her offered instruction No. 14. This instruction was properly refused by the court as it placed a higher duty upon the respondents than that fixed by the law. The jury was adequately instructed on every phase of the law applicable to the case.
"We recognize that the appellant sustained a grievous injury which caused her much pain and suffering and has placed a great financial burden on her. However, this does not justify our reversing the case since there was substantial evidence sustaining the jury verdict and it should not be disturbed by us.
The judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, CASTLES and JOHN C. HARRISON concur.
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MR. JUSTICE JOHN C. HARRISON,
delivered the Opinion of the Court.
This is an original application for a writ of review by the state, on the relation of Ralph Bellon, against the district court of the fourth judicial district, in and for the County of Lake to annul an order quashing an affidavit of disqualification and an order granting a new trial.
Briefly, it appears from the record that on March 20, 1962, a cause entitled “Dorothea Oldenburg v. Ralph Bellon,” being at issue, was heard before the Hon. Emmet dore, one of the respondents herein, sitting with a jury. On March 24, 1962, the cause was submitted to the jury for deliberation and a verdict in favor of the defendant, Ralph Bellon, relator herein, was returned.
On March 27, 1962, the relator, through his counsel, filed with the clerk of the district court an affidavit, stating that he believed and had reason to believe, that he could not have ‘ ‘ a fair and impartial hearing of said action including hearings on motions for new trial pertaining to said cause,” by reason o'f the bias and prejudice of the said judge, before whom the cause was pending, and asked that another judge be invited in to hear and determine such cause.
On April 2, 1962, the plaintiff, Dorothea Oldenburg, filed a motion to quash the affidavit of disqualification and a motion for a new trial. On April 11, 1962, a hearing was held on the motions before the judge, and, on April 18, 1962, orders granting the motions were issued.
On April 29, 1962, application was made to this court for a writ of review on the ground that the above orders were made by the judge without or in excess of his jurisdiction. The writ was issued and in response thereto the record was certified to this court.
The issue presented for our determination is whether a trial judge may be disqualified after the return of a verdict and before the motion for a new trial has been made, under the new Rules of Civil Procedure.
The respondents contend that “the new Rules of Civil Procedure do not give the defendant this right of disqualification during the 10-day period after entry of judgment” because: (1) the relator (defendant) made a motion for a directed verdict under Rule 50, Montana Rules of Civil Procedure (hereinafter referred to as M.R.Civ.P.), “and by so doing the trial judge was given sole jurisdiction for 10 days from the reception of the verdict;” and, (2) “Rule 59 reposes in the trial judge plenary power and rights to amend and alter a judgment, including the right to grant a new trial. ’ ’
Rule 50(b), M.R.Civ.P. (R.C.M.1947, § 93-2706-13), which is identical to Federal Rule 50(b), 28 U.S.C.A., provides:
“Whenever a motion for a directed verdict made at the close of all the evidence, is denied or for any reason is not granted, the court is deemed to have submitted the action to the jury subject to a later determination of the legal questions raised by the motion. Within 10 days after the reception of a verdict, a party who has moved for a directed verdict may move to have the verdict and any judgment entered thereon set aside and to have judgment entered in accordance with his motion for a directed verdict; or if a verdict was not returned such party, within 10 days after the jury has been discharged, may move for judgment in accordance with his motion for a directed verdict. A motion for a new trial may be joined with this motion, or a new trial may be prayed for in the alternative. If a verdict was returned the court may allow the judgment to stand or may reopen the judgment and either order a new trial or direct the entry of judgment as if the requested verdict had been directed. If no verdict was returned the court may direct the entry of judgment as if the requested verdict had been directed or may order a new trial. ’ ’
Rule 59 M.R.CivJP. (R.C.M.1947, §§ 93-2707-6, entitled “New trials; amendment of judgments” provides:
“ (a) Grounds. 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 for the state of Montana. On motion for a new trial in an action tried without a jury, the court may take additional testimony, amend the findings of fact and conclusions of law or make new findings and conclusions, set aside, vacate, modify or confirm any judgment that may have been entered or direct the entry of a new judgment.
* ‘ (b) Time for Motion. A motion for a new trial shall be served not later than 10 days after service of notice of the entry of the judgment.
“(c) Time for Serving Affidavits. When a motion for new trial is based upon affidavits they shall be served with the motion. The opposing party has 10 days after such service within which to serve opposing affidavits, which period may be extended for an additional period not exceeding 20 days either by the court for good cause shown or by the parties by written stipulation. The court may permit reply affidavits.
“(d) On Initiative of Court. Not later than 10 days after entry of judgment the court of its own initiative may order a new trial for any reason for which it might have granted a new trial on motion of a party, and in the order shall specify the grounds therefor.
“(e) Motion to Alter or Amend a Judgment. A motion to alter or amend the judgment shall be served not later than 10 days after service of notice of the entry of the judgment. ’ ’
Rule 59, M-R.Civ.P., is identical to Federal Rule 59, except that subdivision (a) was rewritten to adapt it to state practice and the phrase “service of notice of” was added in subdivisions (b) and (e).
Neither of the rules above-quoted deal with the disqualification of a trial judge nor was it intended that they should. Federal Rule 63 governs disqualifications in Federal Courts. Federal Rule 63 was not adopted by the Montana Legislature due to the existing Montana disqualification statute, R.C.M.1947, § 93-901, which was neither superseded nor repealed by the adoption of the new Montana Rules of Civil Procedure. This is evidenced by the fact that the legislature amended section 93-901 subsequent to the adoption of such rules.
Section 93-901, R.C.M.1947, as amended, provides:
‘ ‘ Any justice, judge, or justice of the peace must not sit or act as such in any action or proceeding: * * *
“4. When either party makes and files an affidavit as hereinafter provided, that he has reason to believe, and does believe, he cannot have a fair and impartial hearing or trial before a district judge by reason of the bias or prejudice of such judge. Snob, affidavit may be made by any party to an action, motion, or proceeding, personally, or by bis attorney or agent, and shall be filed with the clerk of the district court in which the same may be pending. In any judicial district having only one judge the affidavit of disqualification with reference to any action or proceeding to be tried before a jury must be filed at least one day before the day appointed or fixed by the court for setting the trial calendar; provided, however, this limitation shall not apply unless notice of such setting date shall be given to all parties by the clerk of the district court at least fifteen (15) days prior thereto. In all other cases the affidavit must be filed at least five days before the day appointed or fixed for the hearing or trial of any such action, motion, or proceeding (provided such party shall have had notice of the hearing of snch action, motion, or proceeding for at least the period of five days and in case he shall not have had notice for such length of time, he shall file such affidavit immediately upon receiving such notice). Upon the filing of the affidavit, the judge as to whom said disqualification is averred shall be without authority to act further in the action, motion, or proceeding, but the provisions of this section do not apply to the arrangement of the calendar, the regulation of the order of business, the power of transferring the action or proceeding to some other court, nor to the power of calling in another district judge to sit and act in such action or proceeding, providing that no judge shall so arrange the calendar as to defeat the purposes of this section. No more than two judges can be disqualified for bias or prejudice, in said action or proceeding, at the instance of the plaintiff, and no more than two at the instance of the defendant, in said action or proceeding, and this limitation shall apply however many parties or persons in interest may be plaintiffs or defendants in such action or proceeding. * * *” (Emphasis supplied.)
The respondents contend that a disqualification in this case would deprive the plaintiff, Dorothea Oldenburg, for all practical purposes, of any recourse or relief, since the judge is the only one who is fully apprised of the proceedings below.
This contention has nothing to do with the new Rules, and is governed by existing case law. That a disqualification may properly be made between the judgment and the motion for new trial has been decided by this court in Russell v. Sunburst Refining Co., 83 Mont. 452, 272 P. 998; Hill v. Nelson Coal Co., 40 Mont. 1, 104 P. 876; and State ex rel. Carleton v. District Court, 33 Mont. 138, 82 P. 789.
For the foregoing reasons, we hold that the relator had a right to file the affidavit of disqualification in the case of “Dorothea Oldenburg v. Ralph Bellon” and that the said judge was thereby compelled to disqualify himself and call in another judge to preside in such cause. The court therefore, was without jurisdiction to quash the affidavit of disqualification or grant the motion for new trial. It is so ordered.
The cause is remanded to the district court with instructions to vacate and set aside the order hereinbefore referred to and for further proceedings not inconsistent with this opinion.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, DOYLE and CASTLES concur.
|
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
Appeal from an order and judgment of the District Court of the Eleventh Judicial District dismissing an appeal by the J. G. Watts Construction Company from certain orders of the Industrial Accident Board.
The facts which give rise to this appeal are as follows: John C. Profitt, respondent here, while an employee of the J. G. Watts Construction Company, appellant here, and who will hereafter be referred to as the Employer, became physically unable to continue -working and quit his job. On October 6, 1959, Profitt filled out a claim for benefits under the Workmen’s Compensation Act, stating he was injured while working as a cement bulk plant operator, that September 8, 1959, was the date total wage loss began, and that he had notified his Employer personally of his accident on September 4, 1959. His description of the accident was: “coughing weakness due to the cement dust in lungs.” This claim was received by the Industrial Accident Board on October 9th, accompanied by a letter from Profitt’s attorney requesting that it be filed and requesting the Board to “take whatever action is necessary in line with the Occupational Disease Daw pertaining to this claim.” On October 13th the Board wrote to the attorney advising that the Employer was not enrolled under the Occupational Disease Act, that cement was not listed in the Act as a cause of compensable occupational disease, and that there appeared to be no action for the Board to take in the case.
On October 23rd the Board received a communication from another attorney representing Profitt requesting advice as to whether or not a claim for compensation had been filed, who the Employer’s insurance carrier was, and whether or not the Employer had filed any notice of the accident. On November 3rd the Board advised the attorney that the claim had been filed and gave the same information as it had furnished the previous attorney. Counsel replied that he was not concerned with the Occupational Disease Act, but desired to know who the insurance carrier was under the Workmen’s Compensation Act and again sought the same information previously requested. On November 6th the Board replied that Profitt had filed a claim for compensation but copy of the claim would not be furnished until counsel had been formally appointed by the claimant to represent him. The Board did advise that the Employer was enrolled under Plan 3, or the state fund, for accidental injuries, but further stated: “However, this man’s case is not one of accident.”
The power of attorney was secured and filed on November 19th and counsel in the accompanying letter wrote: “Is the' last sentence and paragraph in your letter of November 6 an. official finding or order of the Board, or your personal observation ? If it constitutes an official order or finding of the Board, I suppose I can appeal from it. If it does not constitute such a finding or order, I suppose I will have to proceed and get one. ’ ’
The Board replied that the wording was based upon a memorandum made by the Chairman and “If you dispute it, you may proceed in any matter [sic] you wish.”
Following another inquiry on December 3rd, the Board advised counsel that no Employer’s report and no medical report had been filed.
On December 3rd a druggist’s claim for supplies furnished injured employee in the sum of $11 was received by the board from the Alton Pearce Drug Co. Thereafter the Board conducted an investigation, interviewed the doctor treating the claimant, but apparently not the Employer.
On February 22, 1960, the Employer acknowledged to the druggist receipt of a bill for $11 and advised that “Until such time as we are advised of the authority for this charge, we cannot recognize same. ’ ’ The druggist then advised the Employer: “The Doctor who prescribed for Mr. Profitt marked the prescription I.A.B. That is the authority for the charge.”
On March 8, 1960, the Employer wrote the Board, enclosing the bill, and stated: “Inasmuch as this is an industrial accident case, we are forwarding same for your processing. ’ ’ The Board replied on March 11th, stating that it was not an industrial accident case but an occupational disease case and that Mr. Profitt would be responsible for his medical and drug bills.
On April 2, 1961, an Employer’s First Report of Injury was received by the Board which contained this statement by the employer: “Employer did not have knowledge of this matter until a claim was filed. The Employer does not believe that any injury was actually sustained as a result of or during the employee’s employment. However, as indicated in the above report, claimant alleges that he was injured while on the job.”
On April 27th, the Employer requested a hearing on the matter and on April 28th a medical examination report was filed with the Board by the Employer. On May 4th the Board ad vised: “The case has been placed on the docket of the Board for hearing. Notice of time and place will be sent at least twenty days in advance of hearing.”
On May 8th, following receipt of copy of the advice from the Board, counsel for Profitt wrote the Board advising that Profitt “hereby withdraws any and all claims for an award or compensation which he could or might have coming under either the Occupational Disease Act of Montana or the Workmen’s Compensation Act of Montana, and hereby requests that an order be entered by your Board finally and forever closing and ending this matter.” The Employer then advised the Board that it resisted any motion on the part of the claimant for dismissal and reiterated its demand for a hearing, further advising the Board that the medical report previously forwarded disclosed a coronary insufficiency and there had been no formal ruling by the Board nor had a hearing been held as to whether or not this “heart case” was a compensable claim. Counsel for Profitt immediately wrote the Board contending the Employer had no right or standing to object to the dismissal of the case and if the employee requested dismissal there would be nothing to be heard or determined and the matter would be moot. Counsel also advised the Board that the civil action had been set for trial in Missoula on May 24th and if he did not have the official order dismissing the matter in advance of the trial date it would be necessary to have a subpoena issued requiring attendance at the trial so the status of the matter could be shown and explained. On May 15th the Chairman of the Board advised counsel for Profitt that the Board would make an order dismissing the proceeding upon a motion signed personally by Profitt and endorsed by his attorneys, moving such dismissal. Such motion was filed with the Board on May 22nd and on the same day the Board entered its order fully and finally dismissing the claim of Profitt with prejudice.
On June 14th the Board received an application for rehearing from the Employer wherein application was made for a re hearing and an initial hearing. On June 19th the Board denied the application.
On July 5th notice of appeal from the orders of May 22nd and June 19th was filed in the District Court of Flathead County. On September 18th the District Court entered its order and judgment dismissing the appeal and affirming the orders of the Industrial Accident Board and this appeal followed.
The findings of fact and conclusions of law entered in the Federal District Court are before us by stipulation of counsel, and the judgment granted pursuant thereto has been appealed to the Court of Appeals of the Ninth Circuit.
The Federal District Court found:
“Defendant, during the time it was engaged in the construction of the Lakeside radar project, was duly enrolled under Plan 3 of the Workmen’s Compensation Act of the State of Montana, but was not enrolled under the Occupational Disease Act of the State of Montana.
“At the time he became ill, the plaintiff filed a claim with the Industrial Accident Board of the State of Montana for compensation under the Workmen’s Compensation Act, but was denied benefits on the ground that his condition was not covered by the Workmen’s Compensation Act. However, no formal order by the Board was made denying such compensation and plaintiff eventually sought and obtained an order dismissing his petition for workmen’s compensation.”
The court further concluded:
“The heart and lung condition from which plaintiff suffers did not result from an injury as defined in the Montana Workmen’s Compensation Act, and is not covered by said Workmen’s Compensation Act, or is said condition covered by the Montana Occupational Disease Act, and therefore plaintiff is entitled to maintain this action.”
The sole issue on appeal to this court is aptly framed by the appellant when it states: “May the Industrial Accident Board order, without a hearing and upon ex parte application of the employee, the dismissal of a claim for compensation filed by an employee, after the employer has demanded a hearing as to the compensability of the claim.”
This court has previously held that an employee is entitled to a hearing upon demand. State ex rel. Lovely v. Swanberg, 135 Mont. 10, 335 P.2d 853.
The fact that an employer is entitled to a hearing before the Industrial Accident Board has not previously been before this court. However, it is urged by the appellant and admitted by the respondent that such a right should exist. Other jurisdictions have ruled that an employer is entitled to initiate and maintain proceedings before the Industrial Accident Board and is entitled to a hearing as a matter of right, even though an employee has not made a claim for compensation.
In Lockard v. St. Maries Lumber Co., 75 Idaho 497, 274 P.2d 995, an employee of the Lumber Company was injured on the job. The employee did not file a claim for compensation but his father instituted a common-law action in Federal Court. The Employer filed an application for a hearing before the Board which was refused. On appeal it was held that the Employer was entitled to a hearing. See also, Metropolitan Casualty Ins. Co. v. Maloney, 56 Ga. App. 74, 192 S.E. 320; Fidelity & Casualty Co. of New York v. Kennard, 162 Neb. 220, 75 N.W.2d 553; Halks v. Rust Engineering Co., 208 S.C. 39, 36 S.E.2d 852; Hoff v. Department of Labor and Industries, 198 Wash. 257, 88 P.2d 419.
Although respondent concedes that the Employer is entitled to a hearing under certain circumstances, he contends that in this case the employer is guilty of laches, and that the Federal Court judgment is res adjudicata. He also contends that the Federal Court had concurrent jurisdiction with the Board to determine coverage under the Act.
Prior to examining these allegations, a statement is necessary concerning the issue on this appeal. Nothing that is stated in this decision is to be in any manner construed to the effect that under certain circumstances we do not believe that an employee may bring a common-law cause of action against his employer after electing to be bound by the- Act. The issue is simply not before us and we do not rule on it.
This, however, does not imply that an employer would not have a vital interest in proceedings before the Board because section 92-203, R.C.M.1947, provides that “Any employer who elects to pay compensation” under the provisions of the Workmen’s Compensation Act shall not be “subject to any other liability whatsoever for * * * personal injury to any employee except as in this act provided; and, except as specifically provided in this act, all causes of action, actions at law, suits in equity, and proceedings whatever, and all statutory and common-law rights and remedies for and on account of such death of, or personal injury to, any such employee are hereby abolished * *
In Wirta v. North Butte Mining Co., 64 Mont. 279, 210 P. 332, 30 A.L.R. 964, this court stated: “That the Compensation Act of this state, in so far as it provides compensation to an injured employee for injuries received from an accident growing out of and in the course of his employment is exclusive of all other remedies, is unquestionable.”
R.C.M.1947, § 92-204, provides in part:
“Where both the employer and employee have elected to come under this act, the provisions of this act shall be exclusive, and such election shall be held to be a surrender by such employer and such employee, as between themselves, of their right to any other method, form or kind of compensation, or determination thereof, or to any other compensation, or kind of determination thereof, or cause of action, action at law, suit in equity, or statutory or common-law right or remedy, or proceeding whatever, for or on account of any personal injury to or death of such employee, except as such rights may be hereinafter specifically granted; and such election shall bind the employee himself, and in ease of death shall bind his personal representative, and all persons having any right or claim to compensation for his injury or death, as well as the employer, and those conducting his business during liquidation, bankruptcy or insolvency. ’ ’
On the issue of laches, we can find nothing in the record to support respondent’s contention. The Employer was enrolled with the Board under Plan Three, the state fund, and therefore would have nothing to gain by delay. In addition, the record shows that the Employer had no notification of the claim until quite some time after it was filed.
Second, respondent’s contention that the Federal District Court judgment is res adjudicata is without merit. The issue on this appeal as previously stated is whether an employer is entitled to a hearing on demand before the Industrial Accident Board. This question was not considered by the Federal District Court and a decree is only conclusive as to the matters actually litigated. See Brennan v. Jones, 101 Mont. 550, 55 P.2d 697.
On the question of concurrent jurisdiction, we have some difficulty. Basically, it is not a question of concurrent jurisdiction as the phrase is generally used. The Industrial Accident Board has no jurisdiction to entertain a common-law cause of action. On the other hand, neither our State District Courts nor the Federal Courts have jurisdiction to issue an award under our Workmen’s Compensation laws without a previous hearing before the Board.
And under the particular fact situation which exists in this case, showing resort in the first instance to the Board, we do not believe that any court should conclude as to whether or not an alleged injury is such as is defined in the Workmen’s Compensation Act, or is or is not covered thereby, without a previous hearing thereon by the Board, and their ruling having been made. The Board is composed of a body of experts whose duty it is to interpret the scope of the Act. Provision is made in the Act for review by the courts following any ruling, and orderly procedure would seem to dictate that such course be-followed.
The California Supreme Court in Scott v. Industrial Acc. Comm., 46 Cal.2d 76, 82, 293 P.2d 18, 22, considered a somewhat similar situation. Although the issue was one involving the California Industrial Accident Board and a California Superior Court, the court stated: “In the present situation, however, as already indicated, the two tribunals involved — the superior court on the one hand, the commission on the other- — do-not have concurrent jurisdiction over the whole of the controversy, and one of them will be without jurisdiction to grant, any relief whatsoever, depending upon whether or not the injuries were suffered within the course and scope of an employment relationship and so covered by the workmen’s compensation laws. In other words, as already indicated, the only-point of concurrent jurisdiction of the two tribunals appears to-be jurisdiction to determine jurisdiction; jurisdiction once determined will be exclusive, not concurrent. (Citing cases.) If' at the time of the accident there was no workmen’s compensation coverage, then the commission is without jurisdiction to-grant relief, and if there was such coverage then the superior-court is without jurisdiction and must leave the parties to pursue their remedies before the commission. (Citing cases.) It is. elementary that the type and extent of relief which can be granted and the factors by which such relief is determined differ materially between the two tribunals; the superior court cannot award workmen’s compensation benefits, and the commission cannot award damages for injuries.”
The instant case varies from the situation which confronted the California Supreme Court in the Scott case. When the action was filed in the District Court of Flathead County, a claim filed by the claimant Profitt was still pending before the Industrial Accident Board. In the Scott case the accident occurred August 15, 1952, the superior court action was com meneed December 23, 1953, and the claim filed with the Industrial Accident Commission on November 23, 1954. In this situation the Supreme Court decided that the superior court proceedings should proceed for purposes of determining jurisdiction and those before the Board be prohibited.
Here the claim was first in time, not the action. Profitt, when trial was about to be had, withdrew his claim and it is at once apparent that there can be serious danger to a workman in circumstances such as exist here by this procedure. In the event it would be ultimately decided that the employee did not have a cause of action he is left without a remedy. Profitt has a wife and nine children and he should have been heard promptly by the Board for the purpose of determining whether his injury was within the Act and compensable and, if not, he would then be in position to seek such other relief as to him appeared proper. In this case he filed a claim with the Industrial Accident Board and he was and is entitled to a hearing ; the Employer likewise was entitled to a hearing, and until such hearing has been held we hold that the Industrial Accident Board lacks authority to dismiss the claim.
What was said by the California District Court of Appeals when the appeal in the Scott case [Scott v. Pacific Coast Borax Co., 140 Cal.App.2d 173, 294 P.2d 1039, 1042, 1043] reached it from a judgment of nonsuit entered in the trial court, based upon its finding that the injury was industrial, and that the authority to fix compensation was vested exclusively in the Industrial Accident Commission, bears repeating here:
“At the very outset, we deem it pertinent to remark that merely because this case reaches us in the form of a common law negligence action for damages, brought by an employee seeking to avoid the exclusive remedy of the Workmen’s Compensation Act, we cannot be oblivious to the time-honored rules which have been established to implement the remedial purposes of the Act. First and foremost is the principle that the provisions of the act ‘shall be liberally construed by the courts with the purpose of extending their benefits for the protection of persons injured in the course of their employment.' Lab. Code, § 3202. The effect of this statutory injunction is to require, where there is any reasonable doubt as to whether the act of the employee is contemplated by the employment or whether the injuries were sustained in the course of the employment, that the courts resolve such doubts in favor of jurisdiction in the Industrial Accident Commission. Freire v. Matson Nav. Co., 19 Cal.2d 8, 10, 118 P.2d 809; Peterson v. Moran, 111 Cal.App.2d 766, 768, 245 P.2d 540; Moise v. Owens, 96 Cal.App.2d 617, 619, 216 P.2d 22. Though it may be more opportunistic for a particular plaintiff to seek to circumscribe the purview of compensation coverage because of his immediate interest and advantage, the courts must be vigilant to preserve the spirit of the act and to prevent a distortion of its. purposes. That the question before us in this case arises out of litigation prosecuted in the superior court is all the more reason for care lest rules of doubtful validity, out of harmony with the objectives of the Act, be formulated. As was aptly stated in Freire v. Matson Nav. Co., supra [19 Cal.2d 8, 118 P.2d 810] : ‘The rule [of liberal construction of the act in favor of its applicability] is not altered because a plaintiff believes that he can establish negligence on the part of his employer and brings a civil suit for damages. If the injury falls within the scope of the act, a proceeding thereunder constitutes, his exclusive remedy. * * ”
In another action (Taylor v. Superior Ct., 47 Cal.2d 148, 301 P.2d 866, 867, 868) seeking a writ of prohibition the fact situation disclosed that the employee filed a claim with the California Industrial Accident Commission on March 20, 1954, and on December 28, 1954, filed a superior court action against the employer “based on the same alleged accident as set forth in the Industrial Accident Commission proceeding. ’ ’ While the matter was still before the Commission the superior court set the cause for trial. The Supreme Court stated:
“It is apparent from the above recited matters that McVey first invoked the jurisdiction of the commission and thereafter sought that of the superior court to adjudicate his claims as to the same injury, and that the question as to which tribunal has jurisdiction over the subject matter of the injury depends upon whether McVey was injured within an employment relationship with petitioner. Therefore, under the holding of Scott v. Industrial Acc. Comm. (1956), supra, 46 Cal.2d 76, 293 P.2d 18, the superior court should not try the ease until the commission has made a final determination of the issue as to whether it or the court has jurisdiction to proceed, i. e., as to whether Mc-Vey’s alleged injuries are covered by the workmen’s compensation laws so far as concerns his claims against petitioner. Meanwhile, the commission should proceed to a determination of such issue. Its adjudication, when final, will be conclusive on all parties.
“We note that respondent court suggests in the points and authorities accompanying its return that ‘Had the question been properly presented respondent court might have determined that it lacked jurisdiction of the action’ and that ‘The case of Scott v. Industrial Accident Commission * * * would seem to be controlling upon the facts alleged in the petition herein, and the Superior Court action should abate by reason of the prior application to the Industrial Accident Commission. ’ ”
For these reasons the cause is remanded to the District Court with instructions to vacate and set aside its order and judgment of September 18, 1961, dismissing the appeal and affirming the orders of the Industrial Accident Board, and to make and enter an order remanding the cause to the Board with instructions that it reinstate the claim and set and hold a hearing to determine its compensability.
It is so ordered.
MR. JUSTICES DOYLE, ADAIR, CASTLES and JOHN C. HARRISON, concur.
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
This is an appeal by the relator, Montana Hospital Association, from a judgment of the District Court of Blaine County, quashing a writ of mandate.
The record discloses that the relator was the assignee of a claim of the St. Joseph’s Hospital, Lewistown, Montana, for medical care rendered one Carl Guse, also known as Carl Gruee. From the record it appears that Mr. Guse belonged to that rapidly disappearing occupation of sheepherding; that he suffered from a common disease of sheepherders, which resulted in his incarceration in the village jail soon after he came to town from his lonely stays at his work. Over a period of three years, Mr. Guse was a guest of Blaine County about eight times according to the testimony of Justice of the Peace Lewis. While the record is bare as to the length of these visits, it can hardly be contended that time served in the local jail could be used to establish residence. There was no testimony introduced where this lonely shepherd spent his time between his inebriate visits to civilization other than that he obtained limited welfare assistance from Blaine County three times during the three-year period. With the exception of a grant of $60 made to cover food and lodging in the cold month of February of 1955, the other grants were for overnight assistance before he left Chinook for his sheepwagon on the lonely prairie.
On January 29, 1958, the local authorities tired of his infre quent visits to town and according to the testimony of the Justice of the Peace, he was “run out of town”. He was next heard of on July 29, 1958, some six months later, when the welfare worker at Judith Basin County was called to the sheriff’s office in the county seat at Stanford to view the inert body of Carl, who according to the worker was “out cold”. Inasmuch as there was no doctor in the town of Stanford and neither the sheriff, the two county commissioners nor the case worker could diagnose whether Carl was drunk and needed to sleep it off, or whether he needed medical attention, it was decided to send him to the nearest hospital located at Lewistown, Montana. The medical wisdom of these men is to be complimented for before leaving the hospital Carl used up $463.65 of the taxpayers’ money in medicine, X rays, and other allied services. The only problem created by their decision was legal, and that is what is the residence of a floating sheepherder and can it be established by mandamus?
After Carl was sent to the hospital William Schweigert, the caseworker at Judith Basin County, investigated the case and a month later found that Carl had previously been in Blaine County. He called the caseworker in that county who told him in reply to a question of whether Carl Guse had previously been there, “Yes, this is the residence since we helped him in 1955.” Based on this statement and the fact that Carl got his mail at Chinook from the Veterans Administration, the Judith Basin office determined that Blaine County was the legal residence of Carl and Blaine County should therefore pay for the hospital bill. They advised the hospital to present its bill to the Welfare Department of Blaine County. The bill was presented to the Commissioners by the Welfare Department and they turned it down for the claimed reason that Carl was not a resident of Blaine County.
After considerable negotiations, personal and through correspondence, relator filed a mandamus action in November 1960. It was heard by Judge Elwell on December 15, 1960, and ruled upon by him on February 8, 1961.
The District Court quashed the writ of mandate concluding that the rejection by the board of county commissioners of the claim submitted by the relator was not merely an administerial action but was one of discretion on the part of the board of county commissioners as provided by law.
Mandamus is an extraordinary remedy and will not issue if there is a plain, speedy and adequate remedy in the ordinary course of the law. This principle is stated in section 93-9103, R.C.M.1947, and is supported by numerous decisions of .this court. State ex rel. McConnell v. District Court, 120 Mont. 253, 182 P.2d 846; Stewart v. State of Montana and State Board of Equalization, 135 Mont. 323, 340 P.2d 151, and Moran v. Board of County Commissioners of Custer County, 139 Mont. 351, 363 P.2d 1073.
This court is of the opinion that the District Court was correct in its conclusion that there existed a plain, speedy and adequate remedy at law. Section 16-1801, R.C.M.1947, provides for an appeal to the District Court from a disallowed claim.
It is therefore apparent that the adequate remedy of law exists to enforce the relator’s claim.
Therefore, as there existed or exists a plain, speedy, adequate remedy at law the judgment of the court quashing the writ of mandate was well-founded. The judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES ADAIR, DOYLE and CASTLES, concur.
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
An appeal by the defendant, Victor R. Ahl, on a judgment, of conviction of grand larceny in the District Court of the Eighteenth Judicial District, in and for the County of Gallatin.
The defendant was a car dealer in Bozeman, Montana, and had over a number of years purchased cars for one Dr. F. I. Sabo of the same city. During the period he had also borrowed money from Dr. Sabo in amounts of $200 twice, and $850, all of this prior to the check in question. Concerning the check in question, the record shows that on March 15, 1960, Dr. Sabo contacted the defendant in an effort to get a car for his wife, who was then in the State of Minnesota. Concerning this transaction, Dr. Sabo testified he got in touch with the defendant, told him what his needs were, and that they went to his home where a long distance telephone call was made to Minnesota. A summary of Dr. Sabo’s testimony shows that the defendant contacted a car dealer in Minneapolis who had a 1958 Cadillac that suited the doctor and that after several calls the deal was closed and arrangements were made to deliver the car to Mrs. Sabo in Minneapolis. Testimony also reveals that on the same day, Dr. Sabo gave the defendant a check in the amount of $2,950, this being the amount that the defendant stated the dealer in Minneapolis wanted for the car.
On the left-hand corner of the check was written, after the printed word “for”: “1958 Cad. loan.” When the check was cashed and returned by the bank to Dr. Sabo, he testified that he was surprised to see the word “loan” written on same though he never denied that it was in his handwriting; that after he got the check he crossed out the word “loan” and wrote over it, the word “advanced”. He stated that he did this for his own bookkeeping system. Several weeks later Dr. Sabo to his surprise and chagrin, learned that it was necessary for him to pay an additional $2,950 on the 1958 Cadillac his wife was driving plus some charges to the Minneapolis dealer. The record revealed that the doctor made efforts to find out what had happened to his first $2,950 and learned that the money had been spent by the defendant in the purchase of other automobiles. After a number of meetings between the doctor and the defendant, covering a period from April to August, the doctor turned the matter over to the county attorney, who filed an information on August 19, 1960, charging larceny. The case was tried before a jury commencing on October 31, 1960, and ran for a period of two days during which the defendant testified. At no time did the defendant deny that he made the telephone call to Minneapolis, that he received the check from the complaining witness, but his defense was that it was a loan instead of a payment for the 1958 Cadillac. The main question before the jury was whether or not the check in the amount of $2,950 given the defendant for the 1958 Cadillac was a loan to the defendant or was a payment for the two year old car.
The defendant set forth the following specifications of error:
1. The verdict is contrary to the evidence.
2. The court erred in permitting a witness to vary a written instrument by parol testimony.
3. The court erred in denying the defendant’s motion for the court to order the jury to return a verdict of not guilty.
4. The court erred in failing to give the defendant’s proposed instruction No. 10.
5. The court erred in failing to give proposed instruction No. 12.
6. The court erred in failing to give proposed instruction No. 13.
The jury properly considered all the evidence and in this, case did not believe the defendant, rather it chose the testimony of Dr. Sabo. This matter was tried for a period of two-days and the transcript reveals considerable conflict in the testimony between Dr. Sabo and the defendant but all of these-matters were before the jury, they had an opportunity to see all of the witnesses, to hear the testimony, to study the documents in question and chose to believe Dr. Sabo in this matter. This court has said in previous cases, the latest State v. Strobel, 130 Mont. 442, 304 P.2d 606:
“The jury evidently rejected the testimony of the defendant and accepted the evidence offered by the State. This it had a right to do. [Citing cases.]
“Other testimony on behalf of the defendant which is urged in appellant’s brief as warranting a reversal of the judgment created sharp conflicts in the evidence, all of which were by the verdict resolved against the defendant. ‘Disputed questions of fact and the credibility of witnesses will not be considered on appeal. Determination of such matters is within the province of the jury, and so long as there is substantial evidence to support the verdict, it cannot be disturbed on appeal.’ State v. Messerly, 126 Mont. 62, 69, 244 P.2d 1054, 1057.”
Concerning specification 2, we find defendant’s exception without merit. This court in the case of State v. Lund, 93 Mont. 169, 18 P.2d 603, set forth the rule with regard to parol evidence and applicable in cases such as this in these words:
“The contention of the defendant that the admission of the oral testimony concerning negotiations relating to the transfer of Western Loan stock was in conflict with the writings, and therefore a violation of the parol evidence rule, we think needs no extended discussion. * * * It would be extending tbe rule with regard to parol testimony-far beyond its accepted interpretation to say that in case of fraud the state may not, in proper cases, show by parol facts to negative the existence of the alleged contract. Section 7531, Rev.Codes 1921 [now R.C.M.1947, § 13-706] ; People v. Kelley, 81 Cal.App. 398, 253 P. 773; People v. Robinson, 107 Cal.App. 211, 290 P. 470; People v. Martin, 102 Cal. 558, 566, 36 P. 952.”
Concerning specification 3, the defendant relies on the case of State v. Karri, 51 Mont. 157, 149 P. 956, L.R.A.1916F, 90. This case established under a different set of circumstances, that such a transaction as this where a check was given under an agreement where it would be used in his business for cashing miner’s checks and to be repaid on a certain day that the transaction amounted to a loan for exchange rather than a bailment. The Karri case however is not the same factual ease as the present case where the testimony reveals that the defendant made the arrangements to get the car for Dr. Sabo; that the amount the dealer in Minneapolis said over the telephone was $2,950; that the check was given to him to pay for said car, such admissions constitute an admission by the defendant that the title was still in Dr. Sabo; that he was a bailee of the money or an agent to procure the Cadillac from a third person. This fact was totally lacking in the Karri case for there was no dealing with a third person.
In the case of Ferry & Co. v. Forquer, 61 Mont. 336, 202 P. 193, 29 A.L.R. 642, this court had the following to say concerning bailment: “A bailment is a delivery of personal property in trust upon a contract, express or implied, that the trust shall be executed faithfully on the part of the bailee. 2 Bl.Com. 451; 2 Kent’s Com. 558; Story on Bailments, § 2. Some of the early definitions apparently contemplated that the thing bailed should be returned in specie, but the preponderant authority and better reasoning support the rule that upon the termination of the bailment, the identical thing bailed, or the product of or substitute for that thing, together with the increments, earnings and gains which may have accrued to it during the period of the bailment, must be re-delivered, delivered over, or accounted for by the bailee in accordance with the terms of the contract. 6 C.J. 1139.”
Here the testimony reveals that defendant admitted title in Dr. Sabo, that he accepted and took custody of the check, and agreed that the money was to pay for the 1958 Cadillac. The essential elements of a bailment having been established the court properly refused the defendant’s motion for an order to the jury to return a verdict of not guilty.
The refusal to give defendant’s proposed instructions 10 and 12 was not error. In the first place both instructions were repetitious, and with regard to 12, the record reveals that defendant’s counsel agreed to the giving of instructions 23 in preference to his proposed instruction number 12.
See State v. Allison, 122 Mont. 120, 141, 199 P.2d 279, 291, where the court quoting from State v. Darchuck, 117 Mont. 15, 156 P.2d 173, stated: . . . It is a well-settled rule in this jurisdiction that instructions must be considered as a whole, and that, if they fairly tender the case to the jury, it is not reversible error that one or more of the instructions, standing alone, is not as full or accurate as it might have been . . .
The refusal to give defendant’s proposed instruction 13 was not prejudicial due to the fact that such instruction is ambiguous, and if it had been given it would have invaded the province of the jury. The intent of the instruction is covered by court’s instruction 28, therefore no error was committed.
We find that the contract herein comes under the classification of a bailment; that the testimony showed appellant violated this trust by appropriating the money to his own use, and that he was properly convicted of grand larceny by bailee. Having reviewed the entire record, and examined all the specifications of error, we fail to find any prejudicial error. Therefore the judgment of the District Court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES DOYUE and CASTLES concur.
MR. JUSTICE ADAIR dissents.
|
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On August 19, 1992, the Defendant was sentenced to twenty (20) years for Sexual Intercourse Without Consent. It is the recommendation of the Court that prior to being eligible for parole that the Defendant shall complete the sexual offender evaluation and participate in the sexual offender treatment program at the Montana State Prison. Five (5) years of the Defendant’s sentence is suspended upon the terms and conditions listed in the August 19,1992 Judgment. The Defendant shall be designated a dangerous offender for the purposes of parole eligibility. The Defendant shall be given credit for 173 days time served.
On May 6,1993, 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 because his attorney was not present.
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 May 29, 1991, the Defendant was sentenced to Count I, forty (40) years with twenty (20) years suspended. On Counts II, III, IV and V, forty (40) years with twenty (20) years suspended on each Count for the Criminal Sale of Dangerous Drugs. The terms imposed in Counts II - V shall run concurrently with each other and concurrently with the term imposed on Count I. The Defendant shall receive credit for 32 days time served. The Defendant shall not be considered eligible for parole until he has successfully completed the inpatient chemical dependency treatment program at the Montana State Prison. Plus conditions as stated in the May 29, 1991 Judgment.
DATED this 23rd day of July, 1993.
On July 23,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Stacy Laqua, Legal Intern from the Montana Defender Project. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall be amended to Count I, twelve (12) years with seven (7) years suspended. On Counts II, III, IV and V, twelve (12) years with seven (7) years suspended on each Count for the Criminal Sale of Dangerous Drugs. The terms imposed in Counts II - V shall run concurrently with each other and concurrently with the term imposed on Count I. The Defendant shall receive credit for 32 days time served. The Defendant must successfully completed a chemical dependency, however, this treatment program may be obtained outside the Montana State Prison. Plus conditions as stated in the May 29, 1991 Judgment. The chemical dependency treatment program and all other portions of the suspended sentence shall be under the supervision of the Department of Corrections and Human Services, Probation and Parole.
The reason for the amendment is to bring the sentence more in line with other sentences of a similar nature.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. John Warner, Judges
The Sentence Review Board wishes to thank Stacy Laqua, Legal Intern from the Montana Defender Project for her assistance to the defendant and to this Court.
|
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JUSTICE HUNT
delivered the opinion of the Court.
Plaintiffs/appellants Boyds brought suit against defendant/ respondent bank based on the deposit of certain negotiable instruments between November 1983 and February 1985. Respondent then brought State Medical into the action by way of a third-party complaint, alleging entitlement to indemnification for any damages which might be awarded in the action. Specifically, the appellants brought suit for statutory conversion under the Uniform Commercial Code pursuant to § 30-3-419, MCA (1989). The present action was stayed by the District Court pending resolution of related litigation arising out of the same events which were the basis for the present action. Following a jury verdict, this Court affirmed the decision in the related litigation. The District Court then lifted the stay in this case and granted summary judgment for the respondent bank on the grounds that the jury verdict in the related action collaterally es-topped appellants’ action against the respondent. Appellants brought this appeal arguing that collateral estoppel does not apply in this situation and that summary judgment was incorrectly granted to the respondent. We affirm.
The only issue before this Court is whether the District Court erred in granting summary judgment to the respondent bank based on the determination that the resolution of the related litigation collaterally estopped the appellants from bringing this action.
Much of the factual background concerning this dispute was set out by this Court in the related case of Boyd v. State Medical Oxygen and Supply, Inc. (1990), 246 Mont. 247, 249, 805 P.2d 1282, 1283-84. The following facts, as set out in Boyd, are relevant to the present appeal:
Steven and Jerri Boyd, husband and wife, owned and operated a corporation known as Montana Medical Oxygen Supply, Inc. (Montana Medical). In 1983, the Federal Medicare Division initiated Medicare fraud charges against Montana Medical and Steven Boyd in federal court. These criminal charges resulted in a five year prison sentence for Steven Boyd and a $190,000 fine for Montana Medical. The federal judge agreed to review the prison sentence and fine under Rule 35 of the Criminal Rules of Civil Procedure if Steven Boyd would divest himself of all ownership in Montana Medical within 120 days. In response, Boyd executed an agreement with defendants Williams, Hungerford and Cloutier, for the sale and purchase of the assets and assumption of certain liabilities of Montana Medical. At about the same time, the Boyds executed documents granting powers of attorney to Williams, Hungerford and Cloutier and providing them with the right to manage Montana Medical. Upon execution of these documents, the federal judge reduced Steven Boyd’s prison term to sixty days and Montana Medical’s fine to $19.00.
At about the same time as the pleas to the federal medicare fraud indictments were entered, Montana Medical and Steven Boyd were suspended from receiving Medicare reimbursements. As a result of the suspension and the criminal fines against Montana Medical, Williams, Hungerford, and Cloutier formed a new corporation, State Medical Oxygen and Supply, Inc. (State Medical), to purchase the assets of Montana Medical rather than purchasing the corporation outright.
An agreement for the purchase of the assets of Montana Medical was signed by both parties. The agreement provided that the buyers, State Medical, were authorized to collect and retain all of Montana Medical’s outstanding accounts receivable. State Medical opened a commercial deposit account for its new business with First Interstate Bank in Kalispell. Some of the checks deposited into this account by First Interstate were made payable to Montana Medical. First Interstate deposited these checks into State Medical’s account based on the language in the agreement to purchase which provided that State Medical was entitled to all of Montana Medical’s accounts receivable.
Shortly after the federal sentences against Boyd and Montana Medical were reduced, a dispute arose between the parties concerning the purchase of the assets. Eventually the sale fell through and each party sought damages from the other, alleging that the other had caused the breach. The present litigation, instigated by the Boyds/Montana Medical against First Interstate on a claim of statutory conversion, was stayed by the District Court on August 3, 1987, pending the outcome of the suit between Boyds/Montana Medical and State Medical. The District Court indicated in the order staying the present action that “[t]he resolution of that suit could be of great significance to this case and others involving these parties and may well resolve many issues raised herein.” In the related litigation, the jury found against both parties and neither Boyds/Montana Medical nor State Medical recovered anything. One of the issues the jury considered was the question of whether State Medical, or Williams, Hungerford, or Cloutier individually, had converted any property of Montana Medical. The jury determined that no conversion had occurred. This Court affirmed the verdict of the jury and the judgment of the District Court. Boyd, 805 P.2d at 1282.
The District Court in the present litigation between Boyd/Montana Medical and respondent bank lifted the stay following this Court’s decision of the related appeal. On August 7, 1991, the District Court denied both parties’ motions for summary judgment. Following the denial of both parties’ motions for summary judgment, the District Court, on August 13, 1991, issued an amended order granting summary judgment for the respondent bank. The District Court determined that the previous litigation “collaterally estops the present action by Plaintiffs against First Interstate Bank.”
Did the District Court err in granting summary judgment to the respondent bank based on the determination that the resolution of the related litigation collaterally estopped the appellants from bringing this action?
Appellants argue that the doctrine of collateral estoppel does not apply to the present litigation. Appellants contend that if collateral estoppel does not apply, then there are genuine issues of material fact in this case which make the District Court’s grant of summary judgment erroneous.
The doctrine of collateral estoppel, which is at times referred to as issue preclusion, has been previously explained by this Court as follows:
“Collateral estoppel” ... may be considered as a branch of the doctrine of res judicata but is distinguishable from the bar to litigation normally called res judicata. The distinction is that res judicata bars the same parties from relitigating the same cause of action while collateral estoppel bars the same parties from relitigating issues which were decided with respect to a different cause of action. [Citation omitted.] The bar that arises from collateral estoppel extends to all questions essential to the judgment and actually determined by a prior valid judgment. [Citations omitted.]
Gessell v. Jones (1967), 149 Mont. 418, 421, 427 P.2d 295, 296. Collateral estoppel provides that “the judgment in the prior suit precludes relitigation of issues actually litigated and necessary to the outcome.” Nat’l Coal Ass’n. v. Hodel (D.Mont. 1987), 675 F.Supp. 1231, 1237. Collateral estoppel prevents “relitigation of a particular issue or determinative fact which was actually or necessarily decided in a prior action ....” Fetherston v. Asarco Inc. (D.Mont. 1986), 635 F.Supp. 1443, 1445. This Court has adopted a three-prong test to determine if the doctrine of collateral estoppel should be applied. Marriage of Stout (1985), 216 Mont. 342, 349, 701 P.2d 729, 733. Collateral estoppel will act as a bar to litigation when:
1. The identical issue raised has been previously decided in a prior adjudication;
2. A final judgment on the merits was issued in the prior adjudication; and
3. The party against whom the plea is now asserted was a party or in privity with a party to the prior adjudication. Stout, 701 P.2d at 733-34.
In this case, the appellants contend that the first prong of the test is not satisfied in that the issue raised in the present suit has not been previously adjudicated. Appellants argue that the issue in the prior litigation was whether the buyers, State Medical, were liable under a theory of common law conversion. In the present action, appellants are seeking damages from the respondent for statutory conversion pursuant to § 30-3-419, MCA (1989). Appellants rely on that portion of § 30-3-419, MCA (1989), which provides that: “(1) An instrument is converted when ....
(c) it is paid on a forged endorsement.” Appellants’ contention is that the District Court erred in determining that the prior action for conversion collaterally estops the appellants from bringing the present action for statutoiy conversion.
In the amended order of the District Court granting summary judgment to respondent, the court stated that:
In previously denying the motion of the Defendant for summary judgment this Court was proceeding on the basis that there still remained questions of fact on a number of issues, including the authority of Third-Party Defendants herein to authorize Defendant First Interstate Bank to accept for deposit to Account No. 01-8550-7 checks made payable to Montana Medical. (It being clear that absent appropriate authority the Defendant First Interstate Bank would have been in error to deposit checks payable to Montana Medical in that account, it being an account for State Medical Services, Inc., a separate entity.)
Upon further review the Court is satisfied that this question of fact and others have been rendered moot by the verdict of the jury and subsequent judgment rendered in Flathead County Cause No. DV-84-146.
The District Court further explained that:
There can be no question that at issue as part of the claim for conversion in DV-84-146 were the very funds at issue here. That jury having determined that no conversion occurred relative to these funds as between Plaintiffs here and Third-Party Defendants here, it follows that any claim against the bank, which was, after all, acting only as conduit to the funds, can[not] withstand a challenge of either res judicata or collateral estoppel.
Thus it is the finding of this Court that the jury verdict in Cause No. DV-84-146 finding in favor of the Defendants as to Plaintiffs collaterally estops the present action by Plaintiffs against First Interstate Bank.
Appellants’ contention that a previous action for common law conversion does not collaterally estop subsequent litigation on a theory of statutory conversion is based on this Court’s decision in Stapleton v. First Security Bank (1983), 207 Mont. 248, 675 P.2d 83. However, Stapleton is readily distinguishable from the present case. In Stapleton, the husband deposited two joint-payee checks into an account that his wife had previously closed. The checks were both made payable to husband and wife. The bank accepted both checks without the endorsement of either payee and without the knowledge or consent of the wife. Shortly after depositing the checks, the husband withdrew the funds from the account without the knowledge or consent of the wife. The husband left Montana and initiated divorce proceedings in Nevada. The Nevada court determined that the funds had been converted by the husband.
Wife then brought suit in Montana against the depository bank and both drawee banks under a claim for statutory conversion. One of the issues in Stapleton was whether the wife was collaterally estopped from pursuing this action in light of the previous judicial determination regarding the underlying conversion by the husband. This Court held that the question of the banks’ liability for statutory conversion had not been decided in the prior litigation. The judicial determination in the prior litigation that the husband converted the funds did not in any way settle the question as to the banks.
In the present case, it has already been judicially determined that no conversion took place between Montana Medical and State Medical as to the very checks in question here. The prior adjudication determined that the appellants had no interest in or right to the checks deposited by the respondent into the account of State Medical. As the District Court in this case correctly pointed out, the decision in the related litigation also resolved the issue the appellants are now attempting to relitigate. The appellants’ claim of statutory conversion involves questions of the bank’s authority to deposit the disputed checks into the account. The determination of the jury indicates the bank correctly deposited the checks into the account in question. The present suit would not be barred by collateral estoppel if the jury had determined that a conversion of the checks had occurred. A subsequent suit would have then been necessary to determine if the bank was hable, and if so, the measure of damages. However, in this situation we hold that the District Court correctly granted summary judgment to the respondent based on the doctrine of collateral estoppel.
Affirmed.
JUSTICES HARRISON, GRAY, McDONOUGH and WEBER concur.
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JUSTICE WEBER
delivered the Opinion of the Court.
Plaintiff, Stephen P. Weber, brought a wrongful discharge action against the State of Montana before the First Judicial District Court, Lewis and Clark County, Montana. Ajury found in favor of Mr. Weber and awarded him $33,230 in damages. Mr. Weber appeals. The State of Montana cross-appeals. We affirm.
The issues raised for review by the parties are restated as follows:
1. Did the District Court abuse its discretion in admitting certain evidence at trial?
2. Did the District Court incorrectly instruct the jury that damages under § 39-2-905(1), MCA, are discretionary?
3. Should the District Court award Mr. Weber costs and attorney fees?
4. Was the jury’s verdict in favor of Mr. Weber supported by substantial evidence?
In September 1988, Mr. Weber resigned from his position as assistant manager of the Tort Claims Division for the State of Montana. At the time of his resignation, Mr. Weber had been employed by the State for 16 years and was earning approximately $30,000 per year. In September 1989, he brought this wrongful discharge action contending he was constructively discharged by intolerable working conditions created by his superiors. Mr. Weber claims he was harassed, treated unfairly and finally demoted for his actions involving a fraudulent claim submitted to his department by the Department of Administration’s Publications and Graphics Division (P & G).
Evidence presented by Mr. Weber indicated that in August 1986, he received a property damage claim for $111,000 from Gary Wolf, administrator of P & G. Mr. Weber presented extensive testimony that this claim submitted by P & G was inflated. In fact, Weber assessed the property damage at under $6,000. Further, evidence indicated that contrary to § 2-17-105, MCA, P & G was using the insurance proceeds to purchase office furniture and equipment instead of replacing the property allegedly destroyed by the flood. As a result, Mr. Weber testified that he refused to pay P & G’s claims.
In November 1986, Mr. Wolf and P & G bureau chief, Don Brieby, met with Mr. Weber’s superior, John Maynard (Maynard), regarding Mr. Weber’s refusal to pay the claim. In response to this meeting, Mr. Weber testified that his superiors ordered him to pay the claims submitted by P & G.
Subsequently, Mr. Weber informed the legislative auditor of the exorbitant claim. The auditor determined P & G improperly purchased office equipment and furniture with the insurance proceeds; however, the auditor did not investigate Mr. Weber’s complaint regarding the inflated claim until after this trial.
After the P & G claim controversy, Mr. Weber testified that working conditions became “strained.” Mr. Weber testified his superiors began accusing him of making mistakes on office matters in which he had no involvement. Mr. Weber further testified they treated him like he did not exist, would not speak to him and made him feel unimportant. Finally, in June 1988, Mr. Maynard informed Mr. Weber that as a result of reclassification, his position would most likely be downgraded. In September 1988, after receiving the news that he would be demoted immediately, Mr. Weber tendered his resignation.
This case was submitted to a jury. Mr. Weber claimed the State, through its supervising personnel, constructively discharged him from employment by causing him to leave his job. The State denied that Mr. Weber was forced to leave his job. In the alternative, the State claimed that even if Mr. Weber was wrongfully discharged, he did not take reasonable steps to minimize his damages. The jury rendered a verdict in favor of Mr. Weber for $33,230. As a result, Mr. Weber submitted post-trial motions requesting a new trial on the issue of damages, and an award of attorney fees and costs from the court. The District Court denied both motions. From this order Mr. Weber appeals. The State cross-appeals, claiming the jury verdict was not supported by substantial evidence.
The appellant in this action is not related to the author of this opinion.
I
Did the District Court abuse its discretion in admitting certain evidence at trial?
Admitting or refusing evidence is within the discretion of the trial court. Morning Star Enterprises, Inc. v. R.H. Grover, Inc. (1991), 247 Mont. 105, 110, 805 P.2d 553, 556. Thus, in order to overturn an evidentiary ruling Mr. Weber must show an abuse of discretion.
Mr. Weber claims the District Court abused its discretion by admitting four specific segments of testimony and one exhibit. These include: Mr. Maynard’s job performance appraisal and certain tes timony regarding Mr. Weber’s job performance; prejudicial testimony raising the Inference that Mr. Weber’s claim was frivolous; and testimony appealing to the self-interest of the jurors as taxpayers.
Mr. Weber objects to derogatory statements and exhibits involving his job performance. First he claims that this evidence was irrelevant where the State never placed his job performance at issue in their answer or the pretrial brief. We disagree. Mr. Weber introduced evidence of his diligent work habits during the trial. Thus, we conclude the District Court did not abuse its discretion in allowing the State to submit evidence for the purpose of rebutting that testimony.
Next, Mr. Weber claims the derogatory testimony regarding his job performance is improper character evidence under Rule 404, M.R.Evid. We disagree. The evidence regarding Mr. Weber’s job performance is not character evidence excluded by Rule 404, M.R.Evid. We conclude it is admissible evidence of the plaintiff’s conduct.
Further, Mr. Weber claims the testimony and evidence regarding his job performance was self serving, remote, opinion testimony of a lay witness, and a prior consistent statement disallowed under Rule 801(d)(1), M.R.Evid. Again, Mr. Weber has failed persuade this Court that the District Court abused its discretion by admitting this evidence. We conclude the District Court did not abuse its discretion in allowing testimony and a job performance appraisal which criticized Mr. Weber’s job performance.
Next, Mr. Weber contends the court abused its discretion in admitting testimony from the director of the Department of Administration, and Mr. Maynard, administrator of the Tort Claims Division. Mr. Weber contends this testimony led to the inference that his claim was frivolous and incorrectly appealed to the self-interest of the jurors as taxpayers. After reviewing the record, we conclude Mr. Weber has incorrectly described the testimony, and has failed to demonstrate the lower court abused its discretion in admitting the testimony.
We hold the District Court did not abuse its discretion in admitting certain evidence and properly denied plaintiff’s motion for a new trial on this issue.
II
Did the District Court incorrectly instruct the jury that damages under § 39-2-905(1), MCA, are discretionary?
Mr. Weber objects to the District Court’s Jury Instruction No. 17 which reiterated the language in § 39-2-905(1), MCA, instructing that:
If an employer has committed a wrongful discharge, the employee may be awarded lost wages and hinge benefits for a period not to exceed 4 years horn the date of discharge, together with interest thereon. Interim earnings, including amounts the employee could have earned with reasonable diligence, must be deducted horn the amount awarded for lost wages. (Emphasis added.)
Mr. Weber contends that damages under § 39-2-905(1), MCA, are mandatory and that he is entitled to four years compensation including benefits and interest. He argues that under Bascom v. Carpenter (1952), 126 Mont. 129, 136, 246 P.2d 223, 226, and Lamb v. Missoula Imports (1988), 230 Mont. 183, 187-188, 748 P.2d 965, 968, the damages of § 39-2-905(1), MCA, are mandatory. We disagree. Both Bascom and Lamb are inapposite this decision. In Bascom this Court required the lower court to provide notice to a natural parent prior to the termination of their parental rights, despite discretionary language in the statute. We conclude there is no merit to Mr. Weber’s contention that he is similarly situated to the father in Bascom who lost his parental rights without notice. Next, Lamb interpreted a workers’ compensation statute which provided that the court “may” award attorney fees to successful claimants in workers’ compensation actions. In view of the statutory differences between the Workers’ Compensation Act and the Wrongful Discharge From Employment Act; Lamb is not controlling authority for a claim under the Wrongful Discharge Act. We conclude § 39-2-905(1), MCA, places the discretion in the trier of fact to determine the amount of lost wages and benefits not to exceed four years from date of discharge.
Mr. Weber next argues that the jury’s award of damages is not supported by the evidence. We will not reweigh the evidence presented by the parties, or disturb a jury verdict which is supported by substantial evidence. Sizemore v. Montana Power Co. (1990), 246 Mont. 37, 48, 803 P.2d 629, 636. Mr. Weber has failed to demonstrate that the award of $33,230 is not supported by the evidence. We conclude there is substantial evidence to support the verdict.
We hold that the amount of damages recoverable under § 39-2-905(1), MCA, is discretionary; and that the District Court correctly instructed the jury on the measure of such damages. The District Court properly denied plaintiff’s motion for a new trial on this issue.
Ill
Should the District Court award Mr. Weber costs and attorney fees?
First, Mr. Weber claims he is entitled to attorney fees and costs under State v. Frank (1987), 226 Mont. 283, 735 P.2d 290. This Court held that in extreme cases, if justice and equity required, the District Court had the discretion to award costs and attorney fees. Frank, 226 Mont. at 293, 735 P.2d at 297. In Frank, the District Court order the Department of Revenue to pay costs and attorney fees when the Department executed upon Mr. Frank’s wages in violation of a prior agreement. Mr. Frank was forced to file an action in district court to set aside the Department’s improper levy of execution.
In this case, Mr. Weber failed to convince the trial court that the State’s conduct was so extreme as to entitle him to costs and attorney fees. Further, he has failed to provide evidence that the District Court abused its discretion in reaching that determination. Thus, we conclude the District Court did not abuse its discretion in determining that equity and justice did not require the award of costs and attorney fees in this action.
Next, Mr. Weber points to the private attorney general exception which allows the prevailing party to receive an award of costs and attorney fees when the government fails to enforce interests significant to its citizens. Matter of Dearborn Drainage Area (1989), 240 Mont. 39, 43, 782 P.2d 898, 900.
Here, Mr. Weber focuses upon the egregious conduct surrounding the inflated P & G claim, rather than focusing upon the conduct which led to his wrongful termination. While we do not wish to indicate any approval of conduct on the part of P & G, which may be classed as fraudulent, the present action was brought to recover losses for Mr. Weber’s wrongful discharge, and not as a vehicle to reimburse the State for fraudulent claims. We conclude the private attorney general theory is not applicable to this action.
Finally, Mr. Weber contends he should receive attorney fees and costs under § 25-10-711, MCA, which provides in part:
(1) In any civil action brought... against the state ... the opposing party ... is entitled to the costs ... and reasonable attorney’s fees as determined by the court if:
(a) he prevails against the state ...; and
(b) the court finds that the... defense of the state... was frivolous or pursued in bad faith.
It is clear Mr. Weber did prevail against the State. Next, we must determine if the District Court was clearly erroneous when it concluded that the defense of the State was neither frivolous nor pursued in bad faith. Rule 52(a) M.R.Civ.P.
Mr. Weber contends the State’s defense was frivolous and pursued in bad faith where the State maintained the legitimacy of P & G’s insurance claim during the trial; represented that government’s improprieties were harmless; and attacked Mr. Weber’s job performance. The plaintiff again misses the mark by emphasizing the propriety of the P & G claim, instead of analyzing the State’s defense. Although, Gary Wolf’s testimony rebutted the plaintiff’s evidence that P & G submitted an inflated claim, the State steadfastly denied that the inflated claim was connected to the interaction between Mr. Weber and his superiors or his position downgrade which ultimately led to Mr. Weber’s constructive discharge. In addressing Mr. Weber’s concerns regarding the legitimacy of the P & G claim, the District Court found:
“... there was absolutely no evidence that any of Plaintiff’s supervisors knew of the fraud aspects of the flood claim until after Plaintiff had quit his job and after he had filed his lawsuit. Initially, Plaintiff’s reluctance to pay the flood claim came on his interpretation of a statute. He felt that the statute would not authorize purchase of equipment not like that destroyed by the flood. It was only during discovery in 1990 that it came to light that perhaps someone over at publications and graphics had inflated the claim ... there is absolutely no evidence that the people who were responsible for Plaintiff’s termination had any inkling of these apparently ■unethical activities.
Next, the plaintiff contends the State defended in bad faith by representing that the inflated claim was harmless. Mr. Weber mischaracterizes the State’s defense. The District Court found:
... the State did not want to talk about the flood case at all and presented a motion in limine to exclude any evidence in that regard. It was the Plaintiff that brought up the flood time and time and time again, making it the central issue in their case.
The record supports the conclusion of the District Court.
We have previously upheld the relevance of Mr. Weber’s job performance where he had placed his performance at issue in this action.
The District Court pointed out that Mr. Weber originally valued his case at $500,000 in June 1989, and later offered to settle for $170,000 in January 1990. Following trial in this case, the jury evaluated Mr. Weber’s claim at $33,230. As pointed out by the District Court, these figures demonstrate that the State’s defense was not frivolous.
The District Court properly considered the issues raised by Mr. Weber. We conclude that the District Court was not clearly erroneous in determining that the State defended in good faith.
We conclude the District Court properly addressed the issues raised by the plaintiff, and did not err in denying Mr. Weber an award of costs and attorney fees.
IV
Was the jury’s verdict in favor of Mr. Weber supported by substantial evidence?
This Court takes a very limited role in reviewing jury verdicts. As previously stated, we do not retry the issues on appeal, but review the evidence in the light most favorable to the prevailing party and then determine whether substantial evidence supports the jury verdict. Sizemore, 246 Mont. at 48, 803 P.2d at 636. The State contends the evidence presented does not support the jury’s finding of wrongful discharge. We disagree. In reviewing the evidence in the light most favorable to Mr. Weber, we hold substantial evidence supports the jury verdict.
Affirm.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON, GRAY and McDONOUGH concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
In this case, we conclude that the District Court erred in granting summary judgment to plaintiff Brinkman & Lenon because plaintiff failed to meet its initial burden of establishing the absence of genuine issues of material fact. Therefore, we reverse and remand.
The facts necessary to our resolution of this case are straightforward. Brinkman and Lenon, Architects and Engineers (Brinkman), entered into a standard form architectural contract with P&D Land Enterprises (P&D) on May 21,1990. Pursuant to the contract, Brink-man was to perform certain architectural and engineering services in connection with improvements to real estate owned by P&D and P&D was to pay for those services. Under § 4.10 of the contract, P&D was required to give written notice of any deficiency in performance of the services. Section 8.6 required that, in the event of termination of the contract by P&D not resulting from any fault of Brinkman, payment was to be made for services performed prior to the termination date.
Brinkman filed a breach of contract action against P&D in the Eleventh Judicial District Court, Flathead County. Brinkman asserted that it performed services under the contract, and that P&D terminated the contract and then failed to pay the amount owing to Brinkman at that time, in violation of § 8.6 of the contract. In its answer, P&D admitted the existence of the contract and its termination, but denied any breach by it or that it owed Brinkman any money under the contract. P&D also counterclaimed, alleging both breach of contract and negligent failure to provide proper services which resulted in delays, unnecessary expense and lost revenue.
Prior to discovery, Brinkman moved for summary judgment and presented the contract, a letter from P&D, an affidavit and certain invoices in support of its motion. P&D responded generally that issues of fact were raised by the pleadings and not met by Brinkman in its motion and supporting materials. The District Court granted Brinkman’s motion for summary judgment via Memorandum and Order and judgment was entered.
Pursuant to Rule 59(g), M.R.Civ.P., P&D moved the court to alter or amend its judgment, on the basis that Brinkman did not meet its initial burden of establishing the absence of genuine issues of material fact. In particular, P&D argued that its answer and counterclaim required Brinkman to establish entitlement to payment under the contract by, among other things, presenting evidence that P&D failed to give written notice of deficiencies in Brinkman’s services as required by the contract. According to P&D, Brinkman offered only statements of counsel regarding the lack of written notice of deficiencies; no evidence of the lack of such required notice was provided via affidavit or otherwise. Thus, P&D contended, the question of whether such notice was given was a genuine issue of material fact raised by its answer and counterclaim and not met by Brinkman. P&D also presented correspondence to Brinkman, which it characterized as written notice of deficiencies in performance.
Brinkman responded that P&D had the burden of establishing that it had given the required notice of deficiency in response to the motion for summary judgment. Having failed to do so, Brinkman argued, P&D’s presentation of the correspondence purporting to establish that it had given the required notice was untimely. According to Brinkman, P&D was required to raise this “substantive defense” in opposition to the motion for summary judgment. Relying on Scott v. Robson (1979), 182 Mont. 528, 597 P.2d 1150, the District Court denied the motion to alter or amend on the basis that the letter was not timely offered in opposition to the motion for summary judgment and could not be considered thereafter. P&D appeals from the summary judgment which became final upon the court’s denial of its motion to alter or amend.
Did the District Court apply the correct standard to Brinkman’s motion for summary judgment?
Our standard of review in appeals from summary judgment is de novo-, we review a summary judgment utilizing the same criteria used by the District Court initially under Rule 56, M.R.Civ.P. Minnie v. City of Roundup (1993), 257 Mont. 429, 431, 849 P.2d 212, 214. We determine whether there is an absence of genuine issues of material fact and whether the moving party is entitled to judgment as a matter of law. Minnie, 849 P.2d at 214. In this case, we conclude that summary judgment was improper because the record is devoid of the required showing of proof demonstrating an absence of genuine issues of material fact and an entitlement to judgment as a matter of law. Specifically, we focus on the District Court’s determination that P&D did not notify Brinkman of any deficiency in performance.
It is clear that a party moving for summary judgment bears the initial burden of establishing the absence of any genuine issue of material fact and its entitlement to judgment as a matter of law. Rule 56(c), M.R.Civ.P. Furthermore,
[w]hen a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of [its] pleading, but the adverse party’s response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial.
Rule 56(e), M.R.Civ.P. (Emphasis added.) Put another way, the nonmoving party has no obligation to establish that genuine issues of fact exist until the moving party has shown an absence of such issues of fact; unless that initial burden is met by the moving party, the nonmoving party may rest on its pleading. Minnie, 849 P.2d at 214.
In Mathews v. Glacier General Assurance Co. (1979), 184 Mont. 368, 603 P.2d 232, the plaintiff alleged entitlement to the policy limits under a contract for insurance as a result of fire damage. The defendant insurer generally denied the entitlement and asserted the affirmative defense of material alteration of the premises. The plaintiff moved for summary judgment, but did not present evidence from which it could be concluded that a material alteration had not taken place as was alleged in the defendant’s affirmative defense. The district court granted the motion. We noted that the matters considered were devoid of any evidence initially presented by the plaintiff to justify a conclusion that a material question of fact did not exist regarding the affirmative defense of material alteration; absent this showing, the defendant had no duty to come forward with counter-proof. Mathews, 603 P.2d at 235, 237. We reversed the district court, stating:
The order granting summary judgment was based on a determination that although plaintiff was the moving party, defendant had the initial burden to show by affidavits or other evidence, that a material question of fact existed in relation to its affirmative defense of material alteration. Because defendant did not do so, the court granted summary judgment to plaintiff. It was error to impose this initial burden on defendant, the nonmoving party....
Mathews, 603 P.2d at 236.
As was the case in Mathews, the pleadings in this case framed the issues. Brinkman alleged that he was entitled to payment under the contract; P&D alleged that Brinkman had performed deficiently. Given that the contract required P&D to give notice of such deficiencies before terminating the contract, the issue of whether notice was given was crucial to each party’s claim. Further, Brinkman does not dispute on appeal, and did not dispute at the District Court, that P&D’s answer and counterclaim raised the material factual issue of whether notice of deficiency had been given. Thus, with its motion for summary judgment, Brinkman bore the initial burden of establishing the absence of genuine issues of material fact, including the material issue of notice of deficiency in performance. Accordingly, we review the materials submitted in support of Brinkman’s motion.
Brinkman presented the contract containing the provisions referred to in this opinion. Brinkman also presented a letter from P&D referencing the contractual “terminate and pay” provision. Nothing in that letter related to notices of deficiency required by the contract. Finally, Brinkman submitted the affidavit of Tom Heinecke (Heinecke), a Brinkman stockholder, and copies of certain invoices. Heinecke stated that he was familiar with the services performed and invoices corresponding to those services and that Brinkman had not been paid for services performed in the amount of $4,751.98 as of the date of the termination of the contract. Heinecke’s affidavit did not refer to the contract provision regarding deficiency notices or assert that no such notice had been given by P&D.
Brinkman’s brief in support of its motion made numerous references to P&D’s contractual obligation to provide written notice of any alleged deficiency in performance. Brinkman’s counsel stated that “P&D never gave Plaintiff written notification of an alleged deficiency in Plaintiff’s work;” she further stated that “P&D failed to fulfill its obligation to notify Plaintiff of such defective performance, as required under Section 4.10 of the contract;” and again, she stated at some length:
Because P&D never gave Plaintiff written notification of defective performance it cannot claim that its non-payment for services performed is justified. P&D’s failure to provide Plaintiff with the prompt written notification required under the terms of the contract precludes P&D from objecting to its obligation to pay Plaintiff for services performed.
The obvious problem with these statements is just that: they are merely statements of counsel. Such statements of counsel do not meet the evidentiary basis required to support a motion for summary judgment under Rule 56(c), M.R.Civ.P. Traders State Bank of Poplar v. Mann Farms, Inc. (1992), 258 Mont. 226, 242, 852 P.2d 604, 614. As a result, counsel’s statements cannot meet Brinkman’s duty to establish the absence of a genuine issue of material fact regarding a contractually required notice of deficiency.
We conclude that Brinkman did not meet its initial burden with regard to the issue of notice of deficiency; as a result, the burden did not shift to P&D to come forward with evidence establishing the existence of that fact. It is clear from the District Court’s memorandum that the court placed the burden on P&D to present affirmative evidence that, in fact, notice was given. P&D having failed to do so, the court determined that “[tjhere is no issue of fact that P&D did not notify Plaintiff of defective performance” and that Brinkman was entitled to judgment as a matter of law. This conclusion was in error.
Absent a showing that no genuine issues of material fact existed, Brinkman was not entitled to judgment as a matter of law on its breach of contract claim. We hold that the District Court erred in applying an incorrect standard to Brinkman’s motion for summary judgment and in making a determination of the disputed and material factual issue of whether a notice of deficiency was given without evidence of record to support that determination. It follows logically, therefore, that the District Court compounded its error by denying P&D’s motion to alter or amend.
In conclusion, we observe here as we did in Mathews that, although P&D was technically correct in relying solely on its pleading because Brinkman did not meet its initial burden, “that is not to say that we recommend this procedure.” Mathews, 603 P.2d at 240. Here, as in Mathews, P&D may have been able to prevent an appeal on the summary judgment question if it had placed affidavits or other evidence in the record demonstrating that a genuine issue of material fact existed as to the contractually required notice of deficiency.
Reversed and remanded for further proceedings.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, HUNT, TRIEWEILER, NELSON and WEBER concur.
|
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JUSTICE NELSON
delivered the Opinion of the Court.
Gregory Mergenthaler (Mergenthaler) appeals from a Judgment and Commitment of the First Judicial District Court, Lewis and Clark County, based on a jury verdict convicting him of negligent homicide. We affirm.
The issues on appeal are as follows:
1. Did the District Court err in denying Mergenthaler’s motion to dismiss at the conclusion of the State’s case?
2. Did the District Court err in allowing autopsy slides and a photograph of the victim, while alive, to be presented to the jury?
Mergenthaler began dating Donna Weinzetl (Donna) in November, 1991. Donna was the mother of Ashley Weinzetl (Ashley), who was born on November 29,1990. Mergenthaler was convicted of negligent homicide in connection with the death of thirteen-month old Ashley on January 23, 1992.
A few weeks prior to her death, on the evening of January 12,1992, Ashley was hospitalized because of the flu, which caused diarrhea and dehydration. She also suffered a febrile seizure, a common seizure which occurs in young children suffering from a fever or febrile illness. At the time she was hospitalized, she was placed on an I.V. and tested for meningitis. Dr. John Reynolds, the admitting doctor, saw no bruises or other injuries on Ashley. Dr. Reynolds testified that Ashley responded to treatment well, and by the morning of January 13, 1992, appeared to be a “nice normal happy baby.” Ashley stayed in the hospital until January 15,1992, in order to allow Dr. Reynolds time to complete testing of her urine, blood, and spinal fluids. When she was discharged, Dr. Reynolds instructed Donna to feed the child Pedialyte, an oral electrolyte solution, and prescribed amoxicillin for an ear infection.
On January 18, 1992, Carole Keele, Donna’s mother, babysat Ashley while Donna worked. Ms. Keele testified that Ashley ate normally that day. When Ms. Keele bathed Ashley, she noticed that Ashley had a bruise on her foot from where the I.V. had been placed, but testified that there were no other bruises on Ashley. She also testified that Ashley did not appear to be ill that day.
The next day, Ashley ate a normal breakfast, then Donna and Ashley attended church. Church members testified at trial that Ashley was not as active that day as she usually was, but that she appeared healthy and had no bruises or marks on her face. After church, Ashley ate lunch, took a nap, and played in the afternoon.
Later that afternoon, Mergenthaler called Donna and said he would come and pick Donna and Ashley up to visit at Mergenthaler’s house. A short time after arriving there, Donna went to the grocery store to pick up fixings for dinner, and to rent a video. When Donna left the house, Ashley was asleep on top of Mergenthaler’s bed. When Donna returned, Mergenthaler was holding Ashley and she was undressed except for a diaper. Mergenthaler told Donna that Ashley had vomited on the sheets and that he put her on the couch to run a bath. When he came out of the bathroom, Ashley was lying on the floor; Mergenthaler told Donna that Ashley fell off the couch. At this time, Donna noticed that Ashley had a bruise on the right side of her head.
Mergenthaler did not like what Donna had purchased for dinner, so she went back to the store and left Ashley with him. She also went to her apartment to get pajamas for Ashley. Upon her return to Mergenthaler’s apartment, she prepared dinner and they watched the video. She also fed Ashley, who then went to sleep around 9:00 p.m. Donna then made another trip to her apartment to pick up blankets for Ashley. Upon her return, she decided to stay the night at Mergenthaler’s apartment, so she returned to her apartment a last time to pick up her work clothes and curling iron.
Mergenthaler, Donna, and Ashley were sleeping in the same bed and, between 10:00 and 11:00 p.m., Ashley woke up crying and appeared to be having trouble breathing. Donna got up and dressed herself and Ashley in order to go to the emergency room. At that time, Donna noticed the bruises on Ashley’s head were swollen. Mergenthaler asked to hold Ashley, which Donna allowed him to do. Within about five minutes, Ashley began breathing normally. At that time,-Mergenthaler convinced Donna not to take Ashley to the emergency room.
During that night, Mergenthaler and Donna kept checking on Ashley, shining a small flashlight into her eyes every hour. Ashley slept through the night and her breathing appeared normal.
At 4:30 a.m. on January 20, 1992, Donna awoke and got ready for work. She left Mergenthaler’s house at 5:30 a.m. and discovered her car would not start. Mergenthaler assisted her in getting the car started, then Donna left for work, leaving Ashley in Mergenthaler’s care.
Mergenthaler testified that he went back to bed after helping Donna start her car, hut awoke around 6:30 a.m. when Ashley began crying. Mergenthaler then changed her diaper and tried to give her a bottle, which she refused. He testified that he did feed her three jars of baby food and that she then “passed out, just fell asleep again.” Mergenthaler then watched television and later realized he had not given Ashley the amoxicillin. When he went to give her the medicine, she was barely breathing. Mergenthaler testified that he tried to wake her up by shaking and slapping her and that he tried to pry her mouth open but her jaw was locked.
When he was unable to get Ashley to respond, Mergenthaler called his mother, who told him to call Donna. At about 9:00 a.m., Donna received a telephone call from Mergenthaler, telling her that Ashley’s jaw was locked and that her body was limp. Donna testified that she told Mergenthaler to call 911, but he denies this statement. Donna called her doctor’s office and the emergency room, then called Mergenthaler’s apartment. When Mergenthaler answered the telephone, he told Donna the paramedics were there.
Donna went to the hospital and, upon her arrival, found that Ashley was in a trauma unit in critical condition. She was in a coma and unresponsive, with severe retinal hemorrhages. A CT scan showed that there were many areas of free bleeding within her head, including subarachnoid bleeding (at the bottom of the brain) and subdural bleeding (between the covering of the brain and the brain itself). The attending physician, Dr. Reynolds, diagnosed her condition as “whiplash shaken infant syndrome.” Dr. Reynolds testified that he had never seen a child injured in that manner from revival efforts, and further testified that Ashley’s injuries were not consistent with a fall from a couch. Dr. Reynolds also testified that Ashley could not have eaten breakfast the morning of January 20,1992, let alone have eaten three jars of baby food. He believed the injuries had likely occurred within the previous twenty-four to forty-eight hours.
That afternoon, Ashley was flown to the hospital in Great Falls for specialized care. Dr. Ruggerie, a specialist in pediatric critical care, testified that, when Ashley arrived at the Great Falls hospital, his working diagnosis was child abuse. Dr. Ruggerie testified that Ashley’s brain was so swollen that it had herniated, pushing the brain out of the skull through the base of the skull. He found her eyes dilated with significant retinal bleeding, with one retina partially detached.
Dr. Ruggerie noted significant external head injuries, including swelling on the right side of her face and bruises on both sides of the face and over the ears. Ashley also had small pinpoint bruising around the base of her head. Dr. Ruggerie agreed that the injuries were consistent with those of a baby who had been severely shaken. He also opined that the injuries had occurred within twenty-four horns of presentation.
Ashley died on January 23, 1992. Dr. Henneford performed an autopsy, which showed that she had died from swelling of the brain and bleeding within the cranial vault. The autopsy revealed that Ashley had severe bleeding within the brain, hemorrhaging of her retina, and one partially detached retina. Dr. Henneford testified that the hemorrhaging and bleeding were consistent with a “shaken baby episode.” He did not believe that the injuries could be the result of a fall from a couch or from revival efforts. Dr. Henneford believed the injuries inflicted on Ashley occurred three to four days before her death on January 23, 1992.
All three doctors who testified at trial agreed that Ashley’s head injuries could not have occurred through a fall from the couch. They also agreed that the health care providers could not have caused the significant bruising, nor could the bruising have occurred through choking or retching. Dr. Reynolds and Dr. Ruggerie confirmed that the injuries had no relation to the flu symptoms Ashley had earlier in the week, and agreed that none of the injuries were indicative of a febrile seizure.
On January 28, 1992, Mergenthaler was charged by information with negligent homicide. The above evidence was presented at a trial held August 31, 1992 through September 3, 1992, and the jury returned a guilty verdict. After a hearing on December 7, 1992, Mergenthaler was sentenced to ten years in prison and was ordered to pay restitution for all of Ashley’s medical and funeral expenses as a condition of parole. From that Judgment and Commitment, Mergenthaler appeals.
I — MOTION TO DISMISS
Mergenthaler contends that the District Court erred in denying his motion to dismiss the information at the conclusion of the State’s case. Essentially, he argues that there was insufficient evidence to support the charge that he is the person who inflicted the injuries on Ashley. We disagree.
When the issue on appeal is whether there was sufficient evidence to support a jury verdict, the standard of review is whether, after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt. State v. McLain (1991), 249 Mont. 242, 246, 815 P.2d 147, 150. A directed verdict of acquittal is appropriate only when there is no evidence to support a guilty verdict. State v. Haskins (1992), 255 Mont. 202, 210, 841 P.2d 542, 547.
Mergenthaler was charged with negligent homicide, which is defined as negligently causing the death of another human being. Section 45-5-104, MCA (1991). “Negligently” is defined 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 (1991). Thus, in order to find Mergenthaler guilty of negligent homicide, the jury had to find that he grossly deviated from the standard of ordinary care in his conduct with Ashley. After reviewing the entire record in this case in the light most favorable to the State, we conclude that the State introduced sufficient evidence to establish all the essential elements of the crime beyond a reasonable doubt.
Mergenthaler himself admitted that he shook and slapped Ashley, allegedly in an attempt to get her breathing. In addition, strong evidence was presented to show that Mergenthaler had severely injured Ashley while Donna was gone. All the doctors who testified at trial concluded that Ashley’s head injuries could not have occurred through a fall from the couch, as Mergenthaler claimed. In addition, all the doctors agreed that the injuries could not have occurred when Ashley vomited or if she was choking or retching. Rather, the evidence showed that Ashley had been severely shaken and that this shaking caused her brain to swell and ultimately caused her death.
It is clear that circumstantial evidence may be used to prove any element of an offense. State v. Lynn (1990), 243 Mont. 430, 435, 795 P.2d 429, 433. All the evidence presented at trial indicated that Ashley was normal and healthy when she went to Mergenthaler’s apartment on January 19, 1992. The evidence indicated that the injuries were acute and occurred on that day. Mergenthaler had custody and control over Ashley during the period of time when the bruises first appeared on her face. The jury could readily infer that an incident occurred where Ashley was injured during the time Donna was away from Mergenthaler’s apartment. While Mergenthaler could not be compelled to testify, he chose to do so, but did not offer any rational explanation for Ashley’s severe injuries incurred while she was in his care.
In fact, Mergenthaler’s testimony at trial was discredited by the State’s evidence. He claimed that Ashley had fallen off the couch on January 19, 1992, and likely received some facial bruises then. However, all the doctors who testified concluded that the bruises on Ashley’s face could not have been caused by falling off the couch. In addition, Mergenthaler claimed that Ashley ate three jars of baby food on January 20,1992. However, Dr. Reynolds testified that there was no possible way Ashley could have eaten that amount of food, given her condition at the time she was admitted to the hospital.
We conclude that the State provided a significant amount of evidence upon which a rational trier of fact could find Mergenthaler guilty beyond a reasonable doubt. Therefore, we hold that the District Court properly denied Mergenthaler’s motion to dismiss at the conclusion of the State’s case.
II — AUTOPSY SLIDES AND PHOTOGRAPH
Mergenthaler contends that the District Court erred in allowing the State to present autopsy slides and a photograph of Ashley, while alive, to the jury. We disagree.
Our standard of review relating to discretionary trial court rulings is whether the trial court abused its discretion. Steer, Inc. v. Dep’t of Revenue (1990), 245 Mont. 470, 475, 803 P.2d 601, 603-04.
At trial, Dr. Henneford, the physician who performed the autopsy on Ashley, referred to slides taken during the autopsy when he was explaining the nature of the injuries to the jury. It is well established that the trial courts have wide discretion in admitting photographs. State v. Warnick (1983), 202 Mont. 120, 127, 656 P.2d 190, 194. Photographs are admissible for the purpose of explaining and applying the evidence and for assisting the court and the jury in understanding the case. State v. Johnson (1986), 221 Mont. 503, 515, 719 P.2d 1248, 1256. When considering whether photographs should be admitted as evidence at trial, the court must determine whether their probative value is substantially outweighed by the danger of unfair prejudice. State v. Gollehon (Mont. 1993), 864 P.2d 1257, 1263, 50 St. Rep. 1564, 1567.
In Gollehon, the State introduced twenty autopsy photographs taken by the medical examiner. The defendant contended that the photographs had little probative value and should have been excluded. The photographs were only exhibited during the medical examiner’s testimony, and the jury was not allowed to take the photographs into deliberations. We held that, although the photographs depicted the brutality and viciousness of the crimes committed, they were admissible. We stated that we did not believe the photographs would arouse the jurors’ passions any more than other evidence of the defendant’s conduct. “We will not demand that a trial be sanitized to the point that important and probative evidence must be excluded.” Gollehon, 864 P.2d at 1263, 50 St. Rep. at 1567.
As in Gollehon, the autopsy slides here were only exhibited during Dr. Henneford’s testimony for demonstrative purposes. The State did not introduce the slides into evidence; therefore, the jury was not allowed to take the slides into deliberations. In addition, the District Court only allowed a few to be shown during Dr. Henneford’s testimony. Dr. Henneford testified that the slides were helpful in describing the procedures he used, and referred to the slides to describe the nature and extent of Ashley’s injuries and to show that her injuries could not have occurred through choking, gagging, or as the result of a fall or febrile seizure. We hold that the autopsy slides provided important and probative evidence in explaining to the jury how and why Ashley died, and thus were properly used for demonstrative purposes.
The State also introduced a photograph of Ashley when she was alive. Mergenthaler contends that this was prejudicial error. Again, after reviewing the transcript of trial proceedings, we find that the District Court carefully reviewed various in-life photographs in chambers and rejected a number of photographs, including one of Ashley sitting on Donna’s lap. The District Court allowed one photograph of Ashley, wearing a snowsuit, sitting on the back of a pickup truck, taken a few weeks before her death, to be introduced to the jury to show who the victim was and what she looked like.
The child’s size, age, condition, vulnerability, and health were central issues in this case. We have previously held that photographs are admissible if they are relevant to describe a person, place, or thing involved in the case. State v. Mayes (1992), 251 Mont. 358, 371, 825 P.2d 1196, 1205.
In this case, the State maintains that the photograph was relevant to show the jury how Ashley looked and what her health was a few weeks prior to the homicide. The photograph shows a happy, healthy, thirteen-month old child, taken a few weeks prior to her death. There was nothing in particular about this photograph that would inflame the passions or emotions of the jury, and Mergenthaler cannot show any prejudice. See Mayes, 825 P.2d at 1205. We hold that the District Court did not abuse its discretion in allowing the State to introduce the photograph of Ashley.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY, TRIEWEILER and WEBER concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
The defendant was found guilty of felony theft following a jury trial in the McCone County District Court. The defendant appeals from the District Court’s denial of his motion for a new trial.
At the trial, Jacque Kutzler and James Norwood, who allegedly had been with the defendant at the time the crime was committed, testified for the prosecution. They stated that they had accompanied the defendant in his Suburban from Glendive, Montana, to Circle, Montana, on the evening of March 2, 1981, and that the three of them were at the Traveller’s Inn in Circle from about 10:00 p.m. until the bar closed at about 2:00 a.m. They testified that the three of them then visited the defendant’s wife staying until about 4:00 a.m., and that they then proceeded to the Vets Club where the defendant and Norwood broke into the building and stole cash and merchandise.
Kutzler also testified, over the defendant’s objections regarding threats allegedly made against her by the defen dant shortly before the trial. In addition, the defendant’s wife testified, also over the defendant’s objections, regarding a visit she received from the defendant, Kutzler and Norwood on the night of the theft. The State also introduced evidence indicating that the tire tracks found outside the door to the Vets Club matched the tracks made by the defendant’s Suburban. In addition, there was evidence that the defendant was familiar with the layout of the Vets Club as he had done electrical work at the bar four or five years prior to the theft.
The defendant’s testimony differed from that given by Kutzler and Norwood. He testified that he drove from Glendive to Circle alone in his El Camino and that Nor-wood and Kutzler had borrowed his Suburban that night. He admitted meeting Norwood and Kutzler at the Travel-ler’s Inn and proceeding with them to his wife’s house after leaving the bar, but he claims that the three parted company after they left his wife’s house. He stated that he knew nothing about the theft. Ron Hedstrom testified for the defendant stating that the defendant did have his El Camino in Circle that night. However, there was also evidence to the contrary. The police officer who had been on duty the night of the theft testified that he saw the defendant’s Suburban in Circle that night but he did not see the El Camino.
Three issues are presented for review:
1. Did the District Court err in allowing the defendant’s wife to testify?
2. Did the District Court err in allowing witness Kutzler to testify as to threats allegedly made by the defendant?
3. Was sufficient independent evidence presented at trial to corroborate the accomplice testimony?
The defendant contends that it was prejudicial error to allow his wife to testify. This issue was recently addressed in State v. Roberts (1981), Mont., 633 P.2d 1214, 38 St. Rep. 1551. In that case we stated that under Montana law if the defendant is married at the time of trial, the spouse is incompetent to testify either for or against the defendant without his consent, subject to certain exceptions which are not applicable here. Section 46-16-212, MCA; State v. Roberts, supra. This Court went on to hold that the error in allowing the spouse to testify was harmless in that case because the spouse’s testimony was essentially identical to the defendant’s. We have a similar situation here, and we find that the error in this case was also harmless. The entire testimony given by the defendant’s wife is set forth below:
“Q. What is your name and address for the record, please? A. Anne Shaw, Circle, Montana.
“Q. What is your occupation? A. Nurse’s aide.
“Q What is your affiliation — what is your relationship with the defendant, Denny Dean Shaw? A. I’m his wife.
“Q. Where were you in the early morning of March 3, 1981? A. At my home in bed.
“Q. Were you awakened in the early morning hours? A. Yes.
“Q. Can you remember about what time you were awakened? A. At 2:35.
“Q. Who awoke you? A. Denny.
“Q. Who were those — were there any people with Denny? A. Yes, there were.
“Q. Can you recall who these people were? A. There was a girl named Jackie and a boy named Jamie.
“Q. Did you talk with these people? A. A little bit.
“Q. About what time did these people leave? A. Ten to four.
“Q. Do you remember the order in which these people left? A. Yes.
“Q. Could you give me that order? A. Jackie and then Denny and then Jamie.
“Q. How many minutes apart would that be? A. Two or three minutes.”
The defendant himself testified that he went to his wife’s house with Norwood and Kutzler about 2:30 and stayed un til just about 4:00. He went on to state that Jackie left first, then he left and went out to the porch, and then Jamie left, and then he went back in the house just long enough to pick up some pants. Since the testimony given by the defendant’s wife was essentially identical to the defendant’s, the error was clearly not prejudicial.
The next issue is whether the District Court erred in allowing witness Kutzler to testify regarding threats allegedly made by the defendant. The defendant argues that this testimony was evidence of other crimes, wrongs or acts and as such was inadmissible under Rule 404(b), Mont.R.Evid. The defendant further contends that even if this court were to find that the evidence is admissible under Rule 404(b), Mont.R.Evid., the District Court nevertheless erred in allowing the evidence to be introduced when the procedural safeguards established in State v. Just (1979), Mont., 602 P.2d 957, 36 St. Rep. 1649, were not followed.
The statute in question provides as follows:
“Evidence of other crimes, wrongs, or acts is not admissible to prove the character of a person in order to show that he acted in conformity therewith. It may, however, be admissible for other purposes, such as proof of motive, opportunity, intent, preparation, plan, knowledge, identity, or absence of mistake or accident.” Rule 404(b), Mont.R.Evid.
The statutory list of purposes for which other crime evidence may be admitted is not inclusive. State v. Gone (1978), 179 Mont. 271, 587 P.2d 1291. Such evidence may be admitted to prove consciousness of guilt. State v. Gone, supra. In this case the testimony regarding the threats allegedly made by the defendant to one of the prosecution’s key witnesses was properly admitted for that purpose. “In a criminal prosecution any attempted intimidation of a witness is properly attributable to a consciousness of guilt and testimony relating thereto is relevant and admissible in evidence.” People v. Smith (1972), 3 Ill. App.3d 958, 279 N.E.2d 512, 513.
The defendant contends that this evidence should not
have been admitted because the four element test of admissibility established in Just, supra, was not met and the mandatory procedural requirements set forth in Just were not followed. We disagree. Both the admissibility test and the procedural requirements found in Just pertain to evidence of other prior crimes but do not apply to evidence establishing consciousness of guilt regarding the crime with which the defendant is charged.
“ ‘Generally, evidence of other offenses or of other similar acts at other times is inadmissible for the purpose of showing the commission of the particular criminal offense charged. State v. Taylor, 163 Mont. 106, 120, 515 P.2d 695 (1973). The reason is that the defendant is entitled to be informed of the offense charge [sic] so that he need prepare his defense only to that particular offense. Proof of other offenses subjects him to surprise and to a defense of multiple collateral or unrelated issues. State v. Jensen, 153 Mont. 233, 455 P.2d 631 (1969) . . .’” Just, supra, 602 P.2d at 960, quoting State v. LaVe (1977), 174 Mont. 401, 571 P.2d 97, 100.
Presenting evidence of an attempted intimidation of a witness does not interfere with the defendant’s right to be informed of the offense charged; such evidence pertains to the crime charged by indicating consciousness of guilt.
The defendant next argues that even if such evidence was relevant its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues or misleading the jury and therefore the evidence should not have been admitted according to Rule 403, Mont.R.Evid. We disagree. The evidence was important as proof of consciousness of guilt, and its probative value outweighs any prejudice to the defendant. This evidence did not cause confusion of the issues nor did it mislead the jury. The District Court did not err in allowing Kutzler to testify regarding the alleged threats.
The last issue is whether there was sufficient independent evidence to corroborate the accomplice testimony. Under Montana law a defendant cannot be convicted of a crime solely upon the testimony of an accomplice. Section 46-16-213, MCA, provides:
“A conviction cannot be had on the testimony of one responsible or legally accountable for the same offense, as defined in 45-2-301, unless the testimony is corroborated by other evidence which in itself and without the aid of the testimony of the one responsible or legally accountable for the same offense tends to connect the defendant with the commission of the offense. The corroboration is not sufficient if it merely shows the commission of the offense or the circumstances thereof.”
Kutzler and Norwood were accomplices of the defendant and the defendant contends that their testimony was insufficiently corroborated.
With regard to corroborating evidence the Court has stated:
“ . . the corroborating evidence may be supplied by the defendant or his witnesses; it may be circumstantial evidence; it need not be sufficient to sustain a conviction or establish a prima facia case of guilt; and it need not be sufficient to connect the defendant with the crime but must tend to connect him with the crime. . .’ ” State v. Cassagranda (1981), Mont., 637 P.2d 826, 830, 38 St. Rep. 2122, 2128-2129, quoting State v. Standley (1978), 179 Mont. 153, 586 P.2d 1075, 1077.
We find that there is sufficient corroborating evidence to tend to connect the defendant with the theft at the Vets Club. The defendant admitted that he was with Norwood and Kutzler the evening of the crime, the tire tracks found near the Vets Club matched the tire tracks made by the defendant’s Suburban, there was evidence that the Suburban was the only vehicle owned by the defendant that was in Circle that night, and the defendant was familiar with the layout of the Vets Club. This evidence was sufficient to corroborate the testimony given by Norwood and Kutzler.
Affirmed.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY concur.
|
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JUSTICE HARRISON
delivered the Opinion of the Court.
Steven Eschenbacher (Steven) appeals the July 8, 1991, decree of dissolution of his marriage to Michele Crepeau (Michele) entered in the Fourth Judicial District Court, Missoula County, Montana, which awarded Michele $800 monthly maintenance for an eighteen month period. We affirm.
Steven and Michele began living together in June of 1990 and were married on August 18,1990. No children were born of their marriage, although Steven had two children and Michele had one child from prior relationships.
Prior to and during the marriage, Steven was a commissioned officer in the United States Army stationed at the University of Montana as an Assistant Professor of Military Science earning approximately $46,800 per year. He owned his home free of all encumbrances, he had a savings account with approximately $6,000, and virtually no debt. In addition to his home and savings, Steven brought into the marriage assets including two motor vehicles, a motorcycle, and personal belongings. Prior to the marriage, Steven supported his children and himself.
Michele was a student at the University of Montana working towards a bachelor’s degree. She received financial aid from the University to finance her education and basic living expenses. Prior to the marriage, Michele supported her son and resided in the University’s student housing complex. She also received Aid to Families with Dependent Children (AFDC). Apparently, Michele did not engage in outside employment while she attended school. Michele brought no assets to the marriage aside from her personal effects and a 1981 automobile, when Michele moved into Steven’s home, she disposed of most of her personal belongings including the car which she gave to her parents.
After Michele moved into Steven’s home, but prior to the marriage, Steven obtained a $30,000 home equity loan. Steven used the majority of the loan proceeds to purchase a new van to provide Michele with reliable transportation. Steven used the balance of the loan proceeds to pay for their wedding, reception, honeymoon trip, a holiday cruise, and home improvement materials.
During the marriage Michele assumed household duties including cleaning, preparing meals, and caring for the children while she attended school full-time. However, Steven and Michele hired domestic help to perform the weekly heavy housework. Michele also managed the household finances at Steven’s request. Additionally, Michele and her father extensively remodeled the bathrooms in the home.
On January 7, 1991, the Army ordered Steven to Saudi Arabia as a result of the Desert Storm conflict. Michele remained at home caring for the three children and the home. While in Saudi Arabia, Steven deposited his earnings into the couples joint checking account. After paying her educational expenses, Michele deposited the balance of her financial aid into the couples joint account.
On or about February 14,1991, while still in Saudi Arabia, Steven learned that Michele desired a divorce. Steven received an early return from Saudi Arabia. When he returned home on March 11, 1991, Steven discovered that Michele had moved out of his home taking the van and her personal belongings.
Steven petitioned for dissolution of marriage on March 27, 1991. In her response, Michele requested the court award her the van and monthly maintenance. Thereafter, Michele moved the court for temporary maintenance and property distribution; Steven moved the court for an expedited hearing on the petition for dissolution to accommodate his military transfer to Germany.
The court scheduled the hearing on Michele’s motion for temporary maintenance on June 17, 1991. At that time, the parties, with the court’s approval, agreed to proceed directly to a final hearing on the dissolution. Michele waived all claims to marital property except for the van and basic household items.
After hearing the evidence, the court awarded Michele $1,000 as full settlement for her interest in the marital property and $800 monthly maintenance for eighteen months. The District Court entered its final decree of dissolution on July 8, 1991, containing its findings of fact and conclusions of law. Steven appeals the District Court’s award of maintenance to Michele.
The standard of review is whether the district court’s findings of fact are clearly erroneous. In re Marriage of Eide (Mont. 1991), [250 Mont. 490,] 821 P.2d 1036, 1037, 48 St.Rep. 1054, 1055; and Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 474, 803 P.2d 601, 603. Recently, we adopted a three-part test to determine if a finding is clearly erroneous. Interstate Prod. Credit Assn v. DeSaye (Mont. 1991), [250 Mont. 320,] 820 P.2d 1285, 1287, 48 St.Rep. 986, 987.
First, the Court will review the record to see if the findings are supported by substantial evidence. Second, if the findings are supported by substantial evidence, we will determine if the trial court has misapprehended the effect of evidence. [Citation omitted.] Third, if substantial evidence exists and the effect of the evidence has not been misapprehended, the Court may still find that “[A] finding is clearly erroneous when, although there is evidence to support it, a review of the record leaves the court with the definite and firm conviction that a mistake has been committed.” [Citation omitted.]
Interstate Prod. Credit Assn, 820 P.2d at 1287, 48 St.Rep. at 987. Substantial evidence is defined as “evidence that a reasonable mind might accept as adequate to support a conclusion; it consists of more than a mere scintilla of evidence but may be somewhat less than a preponderance.” Barrett v. Asarco Inc. (1990), 245 Mont. 196, 200, 799 P.2d 1078, 1080 (citation omitted).
The only issue Steven raises on appeal is whether, considering the short duration of the marriage, the District Court erred in awarding Michele $800 monthly maintenance for eighteen months.
A court may award maintenance after the marital property has been equitably divided pursuant to § 40-4-202, MCA, and the court has properly applied the criteria of § 40-4-203, MCA, which provides:
(1) In a proceeding for dissolution of marriage or legal separation or a proceeding for maintenance following dissolution of the marriage by a court which lacked personal jurisdiction over the absent spouse, the court may grant a maintenance order for either spouse only if it finds that the spouse seeking maintenance:
(a) lacks sufficient property to provide for his reasonable needs; and
(b) is unable to support himself through appropriate employment or is the custodian of a child whose condition or circumstances make it appropriate that the custodian not be required to seek employment outside the home.
(2) The maintenance order shall be in such amounts and for such periods of time as the court deems just, without regard to marital misconduct, and after considering all relevant facts including:
(a) the financial resources of the party seeking maintenance, including marital property apportioned to him, and his ability to meet his needs independently, including the extent to which a provision for support of a child living with the party includes a sum for that party as custodian;
(b) the time necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment;
(c) the standard of living established dining the marriage;
(d) the duration of the marriage;
(e) the age and the physical and emotional condition of the spouse seeking maintenance; and
(f) the ability of the spouse from whom maintenance is sought to meet his needs while meeting those of the spouse seeking maintenance.
In the instant case, the District Court found that Michele required maintenance because she did not receive sufficient income-producing property to support herself and that she could not obtain appropriate employment to support herself due to her lack of training and sufficient education. After a thorough review of the record, we agree.
For property to be “sufficient property” under § 40-4-203(l)(a), MCA, it must be income-producing rather than income-consuming property. In re Marriage of Van Atta (Mont. 1992), [252 Mont. 310,] 829 P.2d 3, 5, 49 St.Rep. 264, 265. Due to the short duration of the marriage in the instant case, the couple obtained few marital assets. As a result, the court apparently divided the marital property pursuant to § 40-4-202, MCA, and awarded Michele $1,000. Although these funds are income-producing, the court awarded Michele the $1,000 cash award to replace the basic household items she disposed of prior to and during the marriage. We hold that sufficient evidence exists supporting the District Court’s finding that Michele did not receive sufficient income-producing property to provide for her reasonable needs.
The court also found sufficient evidence to conclude that the second criteria for awarding maintenance, § 40-4-203(l)(b), MCA, was satisfied. The court concluded that Michele was unable to support herself through appropriate employment because she lacked sufficient education and training.
Generally, an award of maintenance is appropriate if the spouse seeking maintenance is unable to obtain appropriate employment with relation to the standard of living achieved by the parties during the marriage. In re Marriage of Skinner (1989), 240 Mont. 299, 306, 783 P.2d 1350, 1354. In this case, Michele enjoyed a middle-class standard of living during her marriage to Steven. Michele contends that the District Court did not err in awarding her maintenance because she is unable to obtain appropriate employment to achieve the standard of living she enjoyed during the marriage until she finishes school. Michele stated that her standard of living has decreased significantly since the separation.
The only evidence concerning Michele’s employability included the uncontested facts that she was to begin working within a few days after the conclusion of the dissolution proceeding. The record indicates that Michele obtained a clerical position earning $5.50 per hour. This position was strictly temporary in nature in that it was in the form of a work study financial aid grant. The University awarded Michele a maximum of $1,800 that she could earn dining the summer; once she earned $1,800 her position would terminate. Based on the foregoing, we hold that substantial evidence exists supporting the District Court’s finding that Michele was unable to support herself through appropriate employment.
The record indicates that Michele satisfied the criteria of § 40-4-203(1), MCA, supporting her eligibility for maintenance. Therefore, the court engaged in step two of the analysis, by applying § 40-4-203(2), MCA, to determine the appropriate duration and amount of monthly maintenance.
Steven argues that Michele is not entitled to $800 monthly maintenance for eighteen months under § 40-4-203(2), MCA, because she has financial resources to meet her needs through the use of financial aid and AFDC, that she can obtain appropriate employment, and that she should be returned to the status she enjoyed prior to the marriage.
The record indicates that Michele’s monthly expenses would be at least $600. Before awarding Michele maintenance, the court considered the factors in § 40-4-203(2), MCA, including the duration of the marriage, the middle-class standard of living enjoyed during the marriage, Michele’s contributions to family harmony, and Steven’s ability to pay maintenance while meeting his own needs. We hold that substantial evidence exists supporting the District Court’s findings regarding duration and amount of maintenance.
In conclusion, the District Court did not misapprehend the effect of the evidence and a review of the record does not leave us with a definite and firm conviction that a mistake has been committed. The District Court’s findings were not clearly erroneous, therefore, the judgment is affirmed.
CHIEF JUSTICE TURNAGE and JUSTICES TRIEWEILER and WEBER concur.
|
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On June 9,1992, the Defendant was sentenced to ten (10) years for Count I, Assault; ten (10) years for Count II, Aggravated Kidnapping; Count III, forty (40) years for Sexual Intercourse Without Consent; plus an additional ten (10) years for the use of a weapon while committing the other offenses. Said Sentences are to be served consecutively. The Defendant shall be given credit for 198 days time served. The Defendant is designated as a dangerous offender for the purposes of parole eligibility. The Defendant shall be ineligible for parole for the first thirty (30) years of this sentence, and several conditions were also imposed in the June 9,1992 Judgment.
On March 12, 1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and was represented by Patricia Day-Moore, Legal Intern from the Montana Defender Project. The state was represented by Patrick Paul, County Attorney from Great Falls, Montana.
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 ineligible for parole for thirty (30) years designation shall be removed. All other aspects of the Sentence imposed by Judge McKittrick on June 9,1992, shall remain the same as originally imposed.
The reasons for the decision are:
1. As a non-citizen of the United States, the Defendant will undoubtedly be deported back to Jamaica upon his release from the Montana State Prison.
2. The Defendant’s long-term incarceration deprives him of the possibility of entering any rehabilitation program at Montana State Prison, thereby negating the possibility of adding good-time.
3. Under the present system the Defendant will probably have to serve in excess of twenty (20) years before becoming eligible for parole.
4. The amendment will give the Defendant some hope of completing the sentence imposed.
Hon. Robert Boyd, Acting Chairman, Hon. John Warner, and Hon. James Purcell, Judges
The Sentence Review Board wishes to thank Patricia Day-Moore, Legal Intern from the Montana Defender Project for her assistance to the defendant and to this Court. The Board also wishes to thank Pat Paul for appearing on behalf of the State of Montana.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This is an appeal from a judgment in favor of plaintiff and against defendant in the district court of the tenth judicial district.
The action was brought by plaintiff for damages resulting from personal injuries sustained by him in a fall from a water tank which was in the control of defendant at the time of the accident.
The facts of this case can be ascertained by an examination of the allegations and denials of the pleadings of plaintiff and defendant. Hancock Oil Company hired defendant, Anschutz Drilling Company, to drill an oil well for them. Hereinafter Hancock Oil Company will be referred to as Hancock and Anschutz Drilling Company as defendant.
Plaintiff alleged that in the month of June 1956, he was engaged in hauling water to the site of the drilling operations of defendant, such water being required by defendant in these drilling operations. He alleged that defendant maintained and had exclusive control over the water tank on this site and that such water tank was equipped with a ladder on the side, and a water line running up the tank alongside the ladder. He further alleged that the ladder terminated at the top of the tank, whereas, the water line continued on up about two feet above the top of the tank. It was further alleged that on the side of this pipe, near the top, there was a coupling extending out to the side, to which was attached a heavy rubber hose, which ran over to a hole in the top of the tank, for the purpose of delivering the water.
Plaintiff alleged that since there was no gauge on the tank, it was necessary for him to climb the ladder to the top of the tank and look into the hole, in order to check the level of the water in the tank. It was his custom, when arriving at the top of the ladder, to take hold of the metal nipple or coupling, which connected the rubber hose to the pipe, and swing himself up on top of the tank. Plaintiff alleged that this nipple or coupling was securely fastened and provided a safe handhold for the first twelve days of June 1956. He alleged that on the twelfth day of June, or during the night, defendant was engaged in painting the tank, and in the course of the painting, the coupling became loose, so that it was not safe. It was alleged that as a result of this condition, when plaintiff climbed the ladder on June 13, the coupling came loose in his hand when he took hold of it, and he fell backwards off the ladder, landed on his chest on a junk rack below, and fell from there to the ground, sustaining severe personal injuries.
Plaintiff alleged that his fall was the result of the negligence of defendant in failing to have the coupling in a safe condition, in failing to reconnect it after it had been loosened, and in failing to warn plaintiff of its condition. Plaintiff further alleged the extent of his injuries resulting from this fall.
Defendant, in its answer, admitted the corporate existence of itself and Hancock, admitted that it was drilling an oil well for Hancock, but denied the remainder of the allegations of the complaint.
It appeared, from all of the evidence concerning the question, that plaintiff was hired by Hancock to furnish the water for the drilling operations and that defendant acquiesced and approved of this arrangement,
Defendant has assigned seventeen specifications of error in its brief. It should be noted that some of these specifications of error are not argued in the brief and may not be considered by this court since they are deemed to be waived. Western Mining Supply Co. v. Melzner, 48 Mont. 174, 136 P. 44. We believe that the remaining specifications of error resolve them selves into eight main questions for our consideration on this appeal. Each of these questions will be considered separately.
The first question concerns the legal relationship between plaintiff and defendant and the consequent duty of defendant to plaintiff.
At the outset of a consideration of this question, it should be noted that, at the trial, there was a question concerning the ownership of the water tank at the time of the accident. Defendant seemed to urge that the tank was actually owned by Hancock and not defendant. There was ample evidence indicating that defendant had exclusive control of the tank at the time of the accident. There was testimony that defendant kept the tank cleaned and painted and treated it as its own. There was evidence that the tank was owned by defendant following the accident, and that it was moved with the rest of defendant’s equipment to subsequent drilling jobs. There was no actual evidence offered to show that the defendant did not own the water tank. We believe that there was sufficient evidence to show at least a proprietary interest on the part of defendant in the water tank.
Defendant contends that plaintiff was not an invitee of defendant while climbing the water tank and, at most, was only a licensee. In support of this contention, defendant claims that plaintiff contracted exclusively with Hancock to furnish the water which was needed for the drilling of the oil well. From the record it appears that plaintiff actually was under contract with Hancock to furnish the water. However, there was evidence that one of defendant’s representatives was present when Hancock approached plaintiff concerning the job, and that defendant fully acquiesced in having plaintiff furnish the water. There was also evidence that defendant’s representative indicated to plaintiff how to use the ladder in checking the water level of the tank and also evidence that defendant’s employees observed plaintiff climbing this ladder twice a day for twelve days before the accident.
In the case of Jonosky v. Northern Pac. Ry., 57 Mont. 63, 73, 187 P. 1014, 1015, this court stated the distinction between invitation and license as follows:
“® * * Much of the confusion arises from the failure of the courts to distinguish between a license and an invitation, and particularly between an implied license and an implied invitation. The distinction is not merely one of descriptive phraseology, but has its foundation in sound common sense. An invitation is inferred where there is a common interest or mutual advantage, while a license is implied where the object is the mere pleasure, convenience, or benefit of the person enjoying the privilege.” Emphasis supplied.
This common interest or mutual advantage test, as applied in the Jonosky case, has been expressly affirmed in the later Montana decisions of Hickman v. First Nat. Bank of Great Falls, 112 Mont. 398, 117 P.2d 275, and Ahlquist v. Mulvaney Realty Co., 116 Mont. 6, 152 P.2d 137. Also see Thompson v. Yellowstone Livestock Commission, 133 Mont. 403, 324 P.2d 412, which approved the same type of language as it was used in a California decision.
Applying this common interest or mutual advantage test to the facts in the instant case, we conclude that plaintiff was an invitee of defendant at the time of the accident. There was uneontroverted testimony in the record which indicated that large quantities of water are indispensable in the drilling of an oil well. It is evident that defendant required and used water in drilling the well and plaintiff furnished this water. Without the water defendant’s drilling would be discontinued. For this reason, the presence of plaintiff on the water tank in order to furnish the water for the drilling of the oil well was for the common interest or mutual advantage of both plaintiff and defendant, and he was an invitee of defendant while on the tank.
Since the relationship between plaintiff and defendant was an invitee-invitor relationship, defendant owed plaintiff the duty of exercising reasonable or ordinary care and a failure to exercise such care would constitute actionable negligence on the part of defendant. Montague v. Hanson, 38 Mont. 376, 99 P. 1063; Chichas v. Foley Bros. Grocery Co., 73 Mont. 575, 236 P. 361; McCulloch v. Horton, 102 Mont. 135, 56 P.2d 1344; Nichols v. Consolidated Dairies, 125 Mont. 460, 239 P.2d 740, 28 A.L.R.2d 1216.
The second question concerns the sufficiency of the evidence of negligence on the part of defendant. This question was raised by defendant by specifying error in that the district court overruled the separate motions of defendant for nonsuit, for a directed verdict, and for a new trial on this ground.
Much of the evidence of negligence in this case is circumstantial. In Exchange State Bank of Glendive v. Occident Elevator Co., 95 Mont. 78, 87, 24 P.2d 126, 129, 90 A.L.R. 740, this court stated the following rule:
‘ ‘ The rule as to circumstantial evidence in a civil case is that a party will prevail if the preponderance of the evidence is in his favor. This court has said: ‘ The solution of any issue in a civil case may rest entirely upon circumstantial evidence * * *. All that is required is that the evidence shall produce moral certainty in an unprejudiced mind. * * * In other words, when it furnishes support for the plaintiff’s theory of the case, and thus tends to exclude any other theory, it is sufficient to sustain a verdict or decision.’ [Citing other Montana authority.] ”
The testimony of plaintiff concerning the negligence of defendant was as follows: When he climbed the ladder for the first time he checked the ladder rungs and the connection where the pipe and hose joined together to make certain that they were solid and safe, and found that everything was solid at that time. There was nothing other than the handhold which consisted of the hose and the connection, suitable to use in climbing up on top' of the tank in order to check the water level of the tank. Plaintiff had no trouble with the handhold during the first twelve days of use and during that time he had seen employees of defendant climbing tbe tank in the same manner in which he climbed it. Defendant’s employees had also observed plaintiff climbing the tank and had said nothing to him about using the hose and connection as a handhold. Plaintiff constantly checked the handhold to make sure that it didn’t leak water and he neAmr saw any water leakage from this connection. As plaintiff was about to seize the handhold at the time of the accident it looked as it always had, and plaintiff had no feeling it Avas any different. When plaintiff seized it in his normal way it “let loose” and felt “just like it wasn’t there.” He also testified that during the two or three days prior to the accident there had been much painting around the entire rig.
Bill Wyze, one of defendant’s employees at the time of the accident, testified as follows: He and the rest of the crew were engaged in the cleaning or washing of the tank the day before the accident during the shift from 3:30 to 11:30 o’clock p.m. The purpose of this cleaning or washing was to prepare the tank for painting. Ordinarily the tank Avas painted about every thirty days. Soap, water and diesel fuel were used in the washing of the tank. When this witness came on shift the next day, approximately an hour and a half after the accident, he thought that the tank had been neAvly painted since it looked like it had been painted. At this time he climbed the tank at the direction of his father, who was the toolpusher or supervisor for defendant, and found the hose hanging loose from its connection Avith the pipe.
The rule concerning a motion for nonsuit or directed verdict has been stated in Mellon v. Kelly, 99 Mont. 10, 20, 41 P.2d 49, 52, as follows:
“This court has often announced the rule that upon motion for nonsuit or directed verdict the evidence must be viewed from the standpoint most favorable to plaintiff, and every fact must be deemed proved which the evidence tends to prove. * * * No case should ever be withdrawn from the jury when reasonable men might draw different conclusions from the evidence. ’ ’
This rule is firmly established by other decisions of this court, and we feel that further citation on the point is unnecessary.
The above-stated evidence concerning negligence on the part of defendant is sufficient to fall within the rule of the Mellon case. There was no error committed on the part of the district court in denying defendant’s motions for a nonsuit and a directed verdict. The evidence, as stated, established that the handhoLd had been safe for twelve days and ou the thirteenth day it was loose. There was evidence that the crew had been cleaning and painting the tank the day and night before the accident. This evidence tends to prove that an employee of the defendant micoupled the hose while washing and painting the water tank and failed to recouple it. Reasonable men might come to this conclusion from plaintiff’s evidence.
Upon the motion for new trial, there is even more evidence of negligence which the district court could consider. This evidence consisted of the testimony of defendant’s own witnesses.
Dugan Sanders, who was in charge of the 11:30 p.m. to 7 :30 a.m. shift, testified that he and his crew had washed the tank completely from top to bottom the night before the accident and painted one-half of it that night. During the night each one of his crew, including himself, was on top of the tank — a total of four men. The connection was also washed in the process. There was also other testimony from defendant’s witnesses that the tank had been washed and partly painted the night before the accident. There was some evidence from defendant’s witnesses that conflicted with the testimony of plaintiff’s witness, Bill Wyze.
Where the sufficiency of the evidence was attacked by a motion for new trial this court, in the case of Wallace v. Wallace, 85 Mont. 492, 502, 279 P. 374, 377, 379, 66 A.L.R. 587, has stated:
“It follows that wherever there is a conflict in the evidence this court may only review the testimony for the purpose of determining whether or not there is any substantial evidence in the record to support the verdict of the jury, and must accept the evidence there found as true, unless that evidence is so inherently impossible or improbable as not to be entitled to belief; and, where a verdict is based upon substantial evidence which, from any point of view, could have been accepted by the jury as credible, it is binding upon this court, although it may appear inherently weak. * * * Where the evidence is conflicting, but substantial evidence appears in the record to support the judgment, the judgment will not be disturbed on appeal, and this is especially true when the court, as here, has passed upon the sufficiency of the evidence on motion for a directed verdict and motion for a new trial and upheld its sufficiency.” This language was quoted with approval in the later Montana decision of Batchoff v. Craney, 119 Mont. 157, 172 P.2d 308.
There was substantial evidence to support the judgment, and the district court acted properly in denying defendant’s motion for a new trial on this ground. The jury could find, from the evidence, that defendant did not exercise the reasonable care required of it.
The third question concerns alleged misconduct on the part of the jury which was raised as one ground for defendant’s motion for a new trial.
It appears that defendant obtained and filed the affidavits of nine of the jurors in an effort to show jury misconduct. Plaintiff obtained and filed counter-affidavits of eleven of the jurors. Defendant then obtained and filed reply affidavits of eight of the same jurors. Defendant is attempting to show that the verdict was determined by chance in violation of section 93-5603, subd. 2, Bt.C.M. 1947, and that for this reason defendant should have been allowed a new trial. Such a verdict is commonly referred to as a quotient verdict.
In the ease of Great Northern Ry. Co. v. Benjamin, 51 Mont. 167, 172, 149 P. 968, 969, this court has stated the rule concerning quotient verdicts as follows:
“# * * We do not know that any court has ever condemned the practice, quite prevalent with jurors, of taking the aggregate of the amounts representing their divergent views as to an award to be made and dividing that sum by the number of jurors as a means of ascertaining the average or as a basis for further consideration. It is only when the jurors agree in advance that the quotient thus obtained shall constitute the amount of their verdict, and such agreement is carried into effect, that the proceeding constitutes a resort to the determination of chance and is condemned by the statute above [referring to what is now section 93 5603, subd. 2] ’ ’. Emphasis supplied.
From an examination of the jurors’ affidavits it appears that the jury did follow a method of adding the figures of the divergent views concerning the amount of damages and dividing the figure so obtained by the number of jurors in arriving at part of its verdict. However, rather than to unduly lengthen this opinion, suffice it to say that after a careful examination of the jurors’ original affidavits, counter-affidavits, and reply affidavits, we find that the trial court did not err in finding that there was no prior agreement on the part of the jurors to bind themselves to- accept the final amount as their verdict. For this reason the denial of the motion for new trial on this ground did not constitute error on the part of the district court.
The fourth question concerns the admission into evidence over defendant’s objection, of plaintiff’s exhibits numbered 1, 2, and 3, which were photographs of the water tank taken some time after the accident, when the tank had been moved to another location. This question also involves the testimony that was received as a foundation for the admission of these photographs.
The objection by defendant concerns two claimed errors. First, defendant claims that the photographs were not admissible since they were taken after the accident when the tank had been moved to a different location. Secondly, defendant claims that the foundation testimony concerning changes in the appearance of the tank was prejudicial to defendant since it tended to show antecedent negligence on the part of defendant.
It appears from the record that these three photographs were snapshots of the water tank which were taken by plaintiff about one year after the accident. As a foundation for the admission of the photographs the plaintiff testified to certain changes in the appearance of the water tank which had occurred between the time of the accident and the time the photographs were taken. These changes consisted of a substitution of metal pipe for the rubber hose which plaintiff had used as a handhold and the installation of a gauge which was put on the tank so the water level could be determined without climbing the tank.
The trial court has wide discretion in admitting diagrams, maps and photographs that will assist the jury in understanding a case. Gobel v. Rinio, 122 Mont. 235, 200 P.2d 700.
In McNair v. Berger, 92 Mont. 441, 459, 15 P.2d 834, 838, this court stated the following rule concerning the admissibility of photographs:
“* * * The general rule governing the admissibility of photographs is that they stand upon the same footing as a map or plat. * * * And ‘it is not even necessary that the situation or condition should be precisely the same, but it is sufficient if the situation is substantially unchanged, and even the fact that there have been changes in conditions, will not necessarily exclude a photograph where the changes can be and are explained, so that the photograph, as explained, will give a correct understanding of the condition existing at the time to which the controversy relates.’ 22 C.J. 920.” Emphasis supplied.
It appears that this water tank was hard to visualize and pictures would enable the court and the jury to gain an understanding of the conditions at the time of the accident. From the rule in the McNair case, it can be seen that when pictures are admitted into evidence it is proper, as was done in this case, to explain any changes that have occurred between the time of the accident and the time the pictures were taken. Therefore, the testimony which was presented as a foundation for the admission of the photographs was properly received. Even if such testimony would tend to show antecedent negligence on the part of the defendant this court is committed to the rule that evidence may be admissible for one purpose but not for another, but if it is admissible for any purpose it may not be excluded. Edquest v. Tripp & Dragstedt Co., 93 Mont. 446, 19 P.2d 637.
The fifth question concerns rulings of the district court on objections by defendant to certain portions of the testimony of plaintiff’s witness, Bill Wyze. This objection is divided into two parts, the first concerns the admission of certain claimed opinions of the witness, and the second concerns claimed hearsay testimony of the witness with regard to statements made by his father, since deceased, who was the supervisor for defendant on the job.
The claimed opinion testimony of the witness was contained in an answer to a question where he asserted that there was nothing at the top of the ladder that was suitable to grab onto besides either the pipe, the hose or the coupling. We think there is serious question as to whether this is objectionable since the witness was familiar with the water tank from his own knowledge. However, if any error was committed in respect to this testimony, it was not prejudicial. No issue of contributory negligence on the part of plaintiff was ever raised by the pleadings, and so the question tendered did not concern any essential issue in the case. In addition, defendant went thoroughly into the same subject with three of its own witnesses. See Copenhaver v. Northern Pac. Ry Co., 42 Mont. 453, 113 P. 467.
The claimed hearsay testimony and the objection thereto appeared in the record as follows:
“Q. What, if anything, did your father say to you as he instructed you to climb the tank ?
“Mr. Mondale: Objection. Testimony of a deceased person.
“The Court: Objection overruled. You may answer.
“A. I don’t know if I can remember the exact words, but he told me to get the hose out of there before someone else grabbed it and fell off.”
As can be seen from the above excerpt, the hearsay objection was not raised in the district eourt and is raised for the first time on this appeal. Since the hearsay objection was not raised in the district court it cannot be considered by this eourt on appeal. Thornton-Thomas Mercantile Co. v. Bretherton, 32 Mont. 80, 80 P. 10; Forquer v. North, 42 Mont. 272, 112 P. 439; Bower v. Tebbs, 132 Mont. 146, 314 P.2d 731. See also State v. Souhrada, 122 Mont. 377, 204 P.2d 792.
The sixth question concerns claimed abuse of discretion on the part of the district court in refusing to submit interrogatories to the jury as a basis for a special verdict.
Here, the defendant attempted to have interrogatories submitted to the jury in accordance with section 93-5202, R.C.M. 1947, which provides, in part:
“In all eases the court may direct the jury to find a special verdict in writing upon all or any of the issues, and in all cases may instruct them, if they render a general verdict, to find upon particular questions of fact, to be stated in writing, and may direct a written finding thereon. * * * In no case shall special issues be submitted to the jury when, in the opinion of the court, a general verdict would be sufficient.” Emphasis supplied.
From a reading of the statute, and a study of the cases, it can be seen that a submission of interrogatories to the jury is within the sound discretion of the district court and a refusal to submit such interrogatories cannot be predicated as error unless it is a clear abuse of discretion. Rairden v. Hedrick, 46 Mont. 510, 129 P. 498; Johnson v. Butte Alex Scott Copper Co., 51 Mont. 126, 149 P. 717; Hatch v. National Surety Corporation, 105 Mont. 245, 72 P.2d 107. It should be noted that this court has never reversed a district court for refusal to submit such interrogatories.
From a consideration of the facts in the instant case, we conclude that this was not the type of case where such interrogatories are necessary. In this case a general verdict is sufficient, and it also appears that some of the proposed interrogatories are confusing and do not concern questions necessarily involved in the general verdict. Under these circumstances, the district court did not abuse its discretion in refusing to submit the interrogatories to the jury for consideration.
The seventh question concerns claimed error on the part of the district court in giving nine instructions to the jury.
We find no merit to this contention of defendant. In attacking four of the instructions, defendant has advanced no argument, in his brief, in support of his specifications of error and an assignment of error which is not argued is deemed waived. Western Mining Supply Co. v. Melzner, 48 Mont. 174, 136 P. 44.
As to the other five instructions it appears that there was a correct statement of the applicable law and we will not burden the opinion with a recital of the instructions. It should also be noted that almost all of the objections to instructions which were raised by defendant’s brief were not raised in the district court during the settlement of instructions.
Defendant objected to the instructions when they were settled but on entirely different grounds than the grounds now raised on appeal. Section 93-5101, subd. 5, provides, in part, as follows:
“* * * and no cause shall be reversed by the supreme court for any error in instructions which was not specifically pointed out and excepted to at the settlement of the instructions, as herein specified, and such error and exception incorporated in and settled in the bill of exceptions or statement of the case as herein provided.5 ’
Because of this statutory provision many of the objections raised in the instant case cannot be considered by this court on appeal. See Pilgeram v. Haas, 118 Mont. 431, 167 P.2d 339.
The eighth question concerns a claim that the awarded damages were excessive which was raised as one of defendant’s grounds in its motion for a new trial.
Plaintiff was awarded a judgment of $63,317.70 and costs. The witnesses who testified as to damages were the plaintiff and Dr. Clayton Allard, an orthopedic surgeon. The testimony of both of these witnesses as to damages, pain and suffering was entirely uncontradicted by defendant.
In the recent Montana case of Dahlin v. Rice Truck Lines, 136 Mont. 430, 352 P.2d 801, 804, it is stated:
“* * * The rule has been established in this state that the amount of damages is committed first to the discretion of the jury, and next to the discretion of the trial judge, who, in passing upon the motion for new trial, may set it aside if it is not just. * * * In Fulton v. Chouteau County Farmers’ Co., supra, 98 Mont. 48, at page 74, 37 P.2d 1025, at page 1034, it was said:
“ ‘We must bear in mind that in this class of cases, “there is no fixed measuring stick by which to determine the amount of damages, other than the intelligence of the jury” (McNair v. Berger, 92 Mont. 441, 15 P.2d 834, 839), to whom, of necessity is allowed a wide latitude, and “so long as we have a system which confides to juries the duty to determine the issues involved in this character of cases and to fix the amount of compensation to be paid unless the result of their deliberation is such as to shock the conscience and understanding, it must be accepted as conclusive” (Autio v. Miller [92 Mont. 150, 11 P.2d 1039], above); “this court will not substitute its judgment for that of the jury, especially where, as here, the trial court has approved the verdict by denying the motion for a new trial.” (McNair v. Berger, supra)’ ”.
In the instant ease, plaintiff was 35 years of age and in good health at the time of the accident. His leg was badly broken by the fall and he was conscious at all times during the accident and was in extreme pain at that time. He was forced to undergo’ operations on his leg because of the accident. The leg carried an intramedullary nail for a period of a year after the accident and this nail caused constant pain and suffering during this period of time. The injured leg has been permanently shortened by two inches as a direct result of the accident. At the time of the trial the leg still ached on days of inclement weather and caused the plaintiff considerable pain when he was on it for any length of time.
The condition of the leg greatly restricted the leisure activities of plaintiff such as hunting, fishing, golfing and dancing. It also restricted his work capabilities. In addition, the plaintiff sustained damages of $1,017.70 for medical expenses, and approximately $25,000 for loss of wages for the two years that he could not work as a result of the accident.
From the record of the case, we find that the damages were not awarded under the influence of passion or prejudice and the verdict does not shock the conscience of this court. See R.C.M.1947, § 93-5603, subd. 5. The district court was correct in denying the motion for new trial on this ground.
For the reasons stated, the judgment of the district court is affirmed.
MR. CHIEF JUSTICE HARRISON and MR. JUSTICES ADAIR and ANGSTMAN concur.
MR. JUSTICE BOTTOMLY:
I agree with the result reached by the majority opinion, but not with all that is said therein.
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PER CURIAM.
Petition for writ of mandate filed herein by Gerald F. Davis, an inmate of the Montana State Prison, appearing pro se.
Petitioner seeks such writ against the District Court of Gallatin County to require appointment of counsel to represent him upon his appeal to this court.
This Court has received copy of an order entered in the aforesaid District Court directing the preparation and filing of a copy of the judgment role upon such appeal with the Supreme Court, and another copy for use of petitioner, all without cost or fees to petitioner. Such order contains the further provision that if petitioner desires an attorney to aid and represent him upon his appeal, that such appointment would be made upon petitioner’s application to such District Court.
Since the relief sought is available to petitioner upon application in the District Court no reason exists for further consideration of the petition and it is ordered dismissed.
Dated this 29th day of March 1962.
|
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On December 8,1992, the Defendant was sentenced to forty (40) years, dangerous, for Sexual Intercourse Without Consent; plus conditions listed in the December 8,1992, Judgment.
On September 24,1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and represented himself. The state was not represented.
Before hearing the application, the Defendant was advised that the Sentence Review Division has the authority not only to reduce the sentence or affirm it, but also to increase it if such is possible. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that he understood this and stated that he wished to proceed.
After careful consideration, it is the unanimous decision of the Sentence Review Division that the sentence shall 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
|
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
Original proceeding by the Board of County Commissioners of Flathead County upon a petition for declaratory judgment.
This matter has a long and involved history. It arises out of a dispute between the Flathead County Board of County Commissioners and the judges of the District Court of the Eleventh Judicial District over funding of the position of Director of Family Court Services in Flathead County. That position was created in 1974 by the judges and the commissioners to meet responsibilities and duties arising under the Montana Uniform Marriage and Divorce Act; the Montana Conciliation Law, and various other statutes relating to family matters. During its first year, the position of Director of Family Court Services was funded by a grant from the State Department of Social and Rehabilitation Services. Thereafter, through fiscal year 1976-77, funding was provided by the county in the District Court budget.
The customary procedure in Flathead County in regard to funding the operations of the District Court was that, prior to the annual submission of their proposed yearly budget, the judges would meet with the commissioners to discuss anticipated programs and expenditures. After a series of such meetings, the proposed budget for 1977-78, including funding for the Director of Family Court Services position, was submitted to the commissioners by the judges on June 13, 1977. The commissioners refused to appropriate any funds for the director position. Numerous further meetings between the commissioners and the judges were held, but the commissioners were adamant.
The original reason given by the commissioners for refusing to fund the position for 1977-78 was that they disapproved of the man the judges wanted to retain as director. In the controversy that ensued from their denial of funding, however, the commissioners changed theirstance and contended they refused to approve the requested budget because the director position was allegedly an unnecessary duplication of services already available in the community from other county and state agencies and from psychologists, counselors, and various other professionals in the private sector. We note that at the time this controversy became ripe, the Director of Family Court Services was supervising more than 65 cases involving custody, visitation, and children’s rights, and overseeing in excess of 60 post-dissolution custody cases per month.
On August 23, 1977, after the numerous meetings between the commissioners and the judges had not resolved the matter, the District Court of the Eleventh Judicial District entered an order directing that the position in question be funded. The commissioners defied that order. On September 2, 1977, an order to show cause why they should not be held in contempt of court issued against the commissioners. A hearing on the order to show cause was held on September 23 before a district judge called in from another judicial district. Findings of fact and conclusions of law filed by the presiding judge thereafter adjudged the commissioners in contempt for defying the order to fund the position of Director of Family Court Services. Subsequently, after further discussion and negotiation, the judges and the commissioners entered into a stipulation whereby the commissioners would comply with the order to fund the position and thereby be purged of contempt, with both sides reserving the right to seek appropriate determination of the legal issues basic to the dispute. On April 11, 1978, the District Court entered an order accepting the stipulation.
During the pendency of the District Court proceedings, the commissioners filed a petition for declaratory relief in this Court. The posture of the matter at that time left it unclear as to what relief or remedy, if any, was proper or available. Therefore, on April 14, 1978, without yet accepting jurisdiction of the petition for declaratory relief, we entered an order, in pertinent part, as follows:
“(1) As this Court is unable to determine on the basis of the material submitted by the parties what factual issues and what legal issues the parties are submitting to this Court for determination, the parties are granted 20 days from the date hereof in which to furnish this Court a written stipulation as to the agreed facts, the agreed issues and the contested facts and issues in this proceeding.
“(2) If the parties themselves are unable to agree to a statement of the facts and issues provided in (1) herein above within said 20 days period this Court will appoint a Special Master at the parties’ expense to determine the same.”
The parties were unable to agree, and we appointed a Special Master by order dated May 9, 1978. The Special Master and the parties worked out an agreed stipulation of facts and issues and submitted it to this Court on August 4, 1978, together with a report of the Special Master detailing many of the circumstances set out above. On August 10 we accepted the report and the stipulation as determining the facts and issues before this Court and directed filing of briefs.
Among the provisions of the stipulation, those that are most significant to this appeal appear in paragraph nineteen:
“The parties want to determine the authority of County Commissioners to fix and determine the judicial budget and, therefore, for the purpose of this stipulation, we agree that:
“1) Assuming that the failure to fund was for the purpose, of discharging [the current director], it is not relevant to the determination of the legal issues in this case.
“2) Any past funding of the position of the Director of Family Court Services is not relevant to the determination of the legal issues in this case.
“3) The . . . sole legal issues [this Cpurt is asked to address] . . . are:
“[a] It is the [District Judges of the Eleventh Judicial District’s] position that any order made by a District Judge that is both legal and necessary (which includes reasonableness) must be obeyed, whether the order be promulgated by reason of statute, constitution, or the inherent power of the Court.
“[b] It is the [Board of Commissioners’ of Flathead County’s] position that County Commissioners have the right to review budgets (which includes the right to reduce or expand) without regard to the legality or necessity of the proposed budget; that in addition, § 16-1901, R.C.M.1947, gives the County Commissioners this right, and that the District Court is a ‘county department’ within the meaning of that act.
“[c] Is the District Court required to submit a budget, annually, to the County Commissioners, and if so, must this be an ‘itemized’ budget, as distinguished from the submission by the District Judges of an ‘advisory’ budget as a matter of courtesy.”
It is apparent from these issues as finally phrased that when this matter was turned over to the Special Master it was transformed from a controversy limited to a determination of rights between two litigants to a request for us to lay down far-reaching guidelines to govern the establishment of court budgets by District Courts and county governments throughout the state. This we decline to do. We have carefully considered the complexities of Montana’s system of funding the operation of the District Courts through local appropriations, and we conclude that any attempt to formulate the kind of guidelines petitioners seek would, on the record before us, be a futile exercise. It is a delicate issue. See for example, Comment, State Court Assertion of Power to Determine and Demand its Own Budget, 120 U.Pa.L.Rev. 1187 (1972). More thorough statewide studies of current practices and expert evaluation of needs and goals is required. Until such information becomes available, we would be remiss to disturb the budgeting process as it now exists. We therefore narrowly confine our holding in this case to its facts and will so approach any future similar cases as they arise.
We now turn to a discussion of the issues. The first item in the stipulation upon which the case was submitted to us is posed in the parties’ briefs as follows: “Must an order made by a district judge that is both legal and necessary (which includes reasonable ness) be obeyed, whether the order be promulgated by reason of statute, constitution, or the inherent power of the Court?” Both sides concede that this question, as phrased, is really a nonissue. Of course such an order must be obeyed. What more we could add by way of discussion to what is essentially a truism we do not know.
The parties’ primary concern in submitting this first issue to us is embodied in their reference in the final phrase to “inherent power”. A substantial portion of their briefs is devoted to discussion, of the doctrine of inherent powers whereby courts are deemed to possess, subject to countervailing statutory and constitutional restrictions, all the necessary and usual incidental powers to effectuate a grant of jurisdiction. See 21 C.J.S. Courts §§ 31, 86-88. Because of the convoluted course this case followed in coming to us, we do not find it to provide a proper context in which to approach the delicate problems of power under the Constitution and clashes between different branches of government which the parties would have us address. Where more apparent and less sensitive means of resolving a controversy are available, constitutional issues should be avoided. E. g. Youngstown Sheet & Tube Co. v Sawyer (1951), 343 U.S. 579, 72 S.Ct. 863, 96 L.Ed. 1153, 26 A.L.R.2d 1378 (Frankfurter, J., concurring).
The division of Family Court Services created in Flathead County is responsible, through the judges, for the following (as itemized in the stipulation):
“(a) Screening of all underage marriage applicants, unless some other qualified person does so pursuant to Section 48-308, R.C.M.1947.
“(b) Promoting amicable settlement of marital disputes.
“(c) To determine, promote, and protect the best interests of children and to assure maximum parental support, discipline, guidance, and supervision, pursuant to Section 48-334, R.C.M.1947.
“(d) To reduce and eliminate whenever possible the physical and emotional trauma of parents and their children prior to, during and after contested divorces and marital controversies.
“(e) To investigate all contested parent-child matters, including recommendations and reporting the same to the parties, their attorneys, and the Court, pursuant to Section 48-335, R.C.M.1947.
“(f) When required, to supervise those cases involving emotional problems between the parents.
“(g) To investigate and report within ten (10) days of each referral, all marital controversies where public welfare or ADC [Aid to Dependent Children] funds are involved in [and] so doing to establish a recommendation to the parties and to the Court the amount of support to be paid within the means of the parents.”
As mentioned previously, these responsibilities all arise out of statutory duties mandated by various laws relating to domestic relations. The Montana Conciliation Law, for example, in section 40-3-124 MCA, provides:
“Manner of conciliation. (1) The judge of the conciliation court may hear all matters invoked under this chapter, or he may refer such matters to a pastor or director of any religious denomination to which the parties may belong, psychiatrist, physician, attorney, social worker, or other person who is competent and qualified by training and experience in personal counseling. Such person shall be referred to herein as the conciliation counselor.
“(2) The conciliation counselor shall:
“(a) hold conciliation conferences with parties to, and hearings, in proceedings under this chapter and make recommendations concerning such proceedings to the judge of the conciliation court;
“(b) cause such reports to be made, such statistics to be compiled, and such records to be kept as the judge of the conciliation court may direct.”
The provisions of the Montana Conciliation Law only apply “... in counties in which the district court determines that the social conditions in the county and the number of domestic relations cases in the courts” render the conciliation procedures “necessary to the full and proper consideration of such cases and the effectuation of the purposes of [the Conciliation Law].” Section 40-3-104 MCA. The judges of the Eleventh Judicial District made this deter mination. Háving done so, they were authorized by the above-quoted statute to acquire the services of a conciliation counselor. The fact that they incorporated several other duties arising out of various other domestic relations statutes in this position and expanded its title and responsibilities does not change the statutory mandate from the Legislature for the court to fulfill and the commissioners to fund this function of the District Court. See section 40-3-114 MCA.
The commissioners concede that District Courts are clothed with all the power and authority necessary to render their jurisdiction effective. Hillis v. Sullivan (1913), 48 Mont. 320, 147 P. 392. They further admit in their brief that they cannot withhold necessary judicial funding which would be “debilitating to the necessary functions of the judicial branch.”
Section 3-1-113 MCA provides:
“When jurisdiction is, by the constitution or this code or any other statute, conferred on a court or judicial officer, all the means necessary to carry into effect are also given. In the exercise of this jurisdiction, if the course of proceeding be not specifically pointed out by this code, any suitable process or mode of proceeding may be adopted which may appear most conformable to the spirit of this code.”
In our view, appointment of a Director of Family Court Services was a “suitable process or mode of proceeding” for the District Court to follow to carry out its statutorily mandated duties.
From the foregoing discussion, we conclude that the District Court acted properly and was entitled to fund the program. On the circumstances present here, the commissioners’ refusal to comply with the funding order was an arbitrary and capricious abuse of the powers of their office. We reiterate that our holding here is narrowly confined to this particular situation. We admonish the District Courts to use the statutorily implied funding power we recognize here with judicious restraint. The constantly changing demands upon the judicial system must be worked out in a spirit of independent identity and balance among legislative, executive, and judicial branches of government by reasonable interaction tempered with respect for the limitations of their power.
The two remaining issues in the stipulation upon which this case was submitted to us are phrased in the briefs as follows:
“I. Do county commissioners have the right to review budgets (which includes the right to reduce or expand) without regard to the legality or necessity of the proposed budget? Does section 16-1901, R.C.M.1947, give the county commissioners this right? Is the District Court a ‘county department’ within the meaning of the act?”
“II. Is the District Court required to submit a budget annually to the county commissioners, and if so, must this be an ‘itemized’ budget, as distinguished from the submission by the district judges or an ‘advisory’ budget as a matter of courtesy?”
The first sentence in issue I above again strikes us as a question phrased in such a way that its answer is implicit in itself. It should be apparent that a budget review undertaken in disregard of legality or necessity would be unlawful. As to the other matters raised in these two issues, Senate Bill 397, signed into law by the Governor on March 31, 1979, renders them moot. This legislation subjects District Court programs funded by the county to the provisions of the County Budget Law.
This cause is dismissed.
MR. JUSTICES HARRISON, SHEA and SHEEHY concur.
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ORDER
PER CURIAM:
This is an original proceeding wherein applicant seeks a writ of supervisory control or other appropriate writ to require the respondent court to vacate, set aside and annul its findings, conclusions and judgment of February 21, 1975, in that certain action pending in the district court of Petroleum County, entitled: The State of Montana, on the relation of Raymond Moritz and Jack Moritz, Petitioners, vs. Ruth Laugeman, Justice of the Peace, Township of "Winnett, Petroleum County, Respondents.
Counsel for the applicant was heard ex parte and thereafter this Court entered an order requesting an adversary hearing before any further proceedings were had. Such adversary hearing was set for April 29, 1975, and on that date counsel for applicant and respondents were present in court, had filed memorandums of authority and presented oral arguments in respect to the application. The matter was taken under advisement at the conclusion of the hearing and the Court now being advised in the premises.
It is hereby ordered that the relief sought be, and it is hereby, denied, and this proceeding is ordered dismissed.
|
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DECISION
The application of the above-named defendant for a review of the sentence of 25 years, imposed on February 3, 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 sentence appears proper and sufficiently lenient in that defendant was convicted of attempted robbery punishable by imprisonment without limit, yet, received a sentence of but 25 years with 63 days jail time credit with eligibility for parole consideration in October, 1973, after being received February 4, 1969, although he shot victim in the commission of the crime and has a prior conviction of felony.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
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MR. CHIEF JUSTICE JAMES T. HARRISON
delivered the Opinion of the Court.
This is an appeal from an order of the district court of Cascade County granting defendant’s motion to dismiss for lack of jurisdiction over defendant. The motion was made under Rule 12(b)(2), Montana Rules of Civil Procedure.
Plaintiffs Moody J. Harrington and Vicki Harrington are residents and citizens of the state of Montana and make their home in Great Falls. Defendant Holiday Rambler Corporation is a foreign corporation and has its principal place of business in Wakarusa, Indiana.
The root of plaintiffs’ complaint lies in an alleged defective travel trailer manufactured by defendant and purchased new by plaintiffs in Spokane, Washington. The complaint in essence alleges:
(1) That plaintiffs purchased a new Holiday Rambler travel trailer at a total cost of $12,691 from a franchised dealer and agent of defendant.
(2) That plaintiffs informed the dealer the trailer was being purchased for use in Montana and plaintiffs towed it there immediately.
(3) That defendant manufactures travel trailers and sells and distributes them throughout the United States, including Montana, and in addition provides parts and service for its trailers in Montana.
(4) That prior to and at the time of purchase defendant, through its agents and representatives, expressly and impliedly warranted to plaintiffs that the trailer was fit for the use intended by them and that normal repairs and defects would be made good by defendant at its sole expense while the trailer was new.
(5) That defendant breached its warranties with respect to the trailer purchased by plaintiffs in that the following defects were discovered: gas leaks, sagging floors, torn linoleum, faulty drains,- inoperative hot water tank, sagging ceilings, inoperative doors and locks, missing oven latch, leaky windows, falling draperies, holding tank odors, defective propane bottle, and various other defects.
(6) That plaintiff Vicki Harrington, at the suggestion of a franchised dealer of defendant in G-rtat Falls, called the manager of defendant’s factory in Indiana in order to ask about getting the trailer replaced with a new unit in workable order, whereupon the manager became belligerent and abusive and accused plaintiff of being drunk when she in fact does not drink alcoholic beverages, and informed her that since plaintiffs had purchased the trailer they were stuck with it, “She would have to keep the Goddam trailer and quit bitching to him about it.”
(7) That plaintiffs had to store the trailer for 128 days at $2.50 per day or a total cost of $320 because they were unable to use it for its intended purpose.
(8) That defendant represented and warranted to plaintiffs that the trailer was new and in workable condition, and thereby induced plaintiffs to purchase it.
(9) That defendant fraudulently and maliciously refused to honor its representations and warranties.
(10) That defendant abused plaintiffs when they inquired what could be done about the situation.
The prayer for relief was for a return of the down payment, assumption by defendant of the finance obligations; $3,000 for personal suffering; $25,000 for punitive damages; plus costs and disbursements.
Defendant filed a motion to dismiss for want of jurisdiction over its person. This motion was supported by a brief and the affidavit of its vice president, the salient parts of which claim:
(1) That defendant has no representative in or assigned to Montana, has not qualified to do business in Montana, and owns no parts, supplies or other property located in Montana.
(2) That any orders received from dealers located in Montana are and have been received by defendant in Indiana, and shipped by common carrier F.O.B. Wakarusa, Indiana.
(3) That no sales are made by defendant through any employee or agents within Montana.
At a hearing on defendant’s motion, plaintiffs testified, offered exhibits, and were cross-examined. Defendant relied solely upon its affidavit. On the basis of this affidavit the district court granted defendant’s motion. Plaintiffs were given 20 days to amend their complaint but did not do so. Thereafter the district court ordered the case dismissed without prejudice.
After a brief but fruitless excursion into federal court, plaintiffs filed a second complaint in the district court. This complaint was substantially the same as the first one, but contained even more allegations and asked for increased damages. Defendant again filed a motion to dismiss for lack of jurisdiction and its affidavit in support thereof. Without a hearing, the district court granted the motion to dismiss.
Plaintiffs seek review of the merits of the district court’s ruling on the jurisdiction question.
The underlying issue is whether the denial of jurisdiction, i.e. defendant’s affidavit, overcomes the allegations of the complaint. We find it does not and hold that dismissal of plaintiffs’ complaint on that ground was premature.
The complaint contains numerous allegations of a rather serious nature which, if proved, would place plaintiffs in a favorable position. It states the trailer was purchased from a franchised dealer and agent of defendant who did not charge plaintiffs a Washington sales tax and who gave them a bro chure listing two franchised factory agents from whom service could be obtained in Montana (alleged in the second complaint) ; that defendant sells and distributes its trailers in Montana ; that parts and services for defendant’s trailers are available in Montana; that defendant’s franchised dealer in Great Falls suggested that plaintiffs call defendant’s factory in Indiana ; and that, defendant violated its warranties on the trailer and committed torts against plaintiffs in Montana.
By comparison, defendant’s affidavit is ambiguous if not contradictory. On one hand defendant flatly asserts that it has nothing to do with the state of Montana, has “no representative resident assigned to or in Montana” and “no sales are made * * * within * * # Montana.” On the other hand, defendant admits at least tacitly to having dealers in Montana — “orders received from dealers located in Montana” are accepted by the factory in Indiana, etc. Moreover, the tenor of the affidavit may reflect an unduly restrictive view as to what Rule 4, M.R.Civ.P., demands in order the jurisdiction to attach. Rule 4(B)(1), defines jurisdiction of persons as: “All persons found within the state of Montana are subject to the jurisdiction of the courts of this state. In addition, any person is subject to the jurisdiction of the courts of this state as to any claim for relief arising from the doing personally, through an employee, or through an agent, of any of the following acts:
“(a) * * #
“(b) the ■ commission of any act which results in accrual within this state of a tort action.”
A reading of the allegations of the complaint clearly shows defendant was “found” within the state of Montana and that defendant committed torts in Montana by way of fraud and personal abuse. Defendant’s affidavit, however, does not satisfactorily explain away plaintiffs’ allegations concerning the former rule requirement, and fails to address itself at all to the latter rule requirement.
The most troublesome aspect here is that defendant was permitted simply to say “Nay” upon affidavit and thereby prevent plaintiffs from having their day in court. We are not disposed to say it is always improper to grant a motion to dismiss for lack of jurisdiction over the defendant when at a hearing on that motion the defendant offers nothing more in support of its position than an affidavit, but we do feel that in the normal course of things plaintiffs at least ought to have the opportunity to cross-examine the defendant. Fundamental fairness requires that to the extent plaintiffs are denied such an opportunity, defendant’s affidavit should be given less weight.
Reversed and remanded for further proceedings not inconsistent with this Opinion.
MR. JUSTICES HASWELL, DALY, CASTLES and JOHN C. HARRISON concur.
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MR. CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Defendant appeals his conviction for disorderly conduct, a violation of Section 45-8-101, MCA, following jury trials in both the City Court of Billings and subsequently in the District Court of the Thirteenth Judicial District, Yellowstone County. He was fined $100 and assessed jury costs of $316. Claiming that Section 45-8-101, MCA, is unconstitutional and that Billings failed to establish a prima facie case, the defendant appeals to this Court.
We affirm the judgment of the District Court holding that Section 45-8-101, MCA, is constitutionally valid and that appellant’s violation of that statute has been established by substantial evidence.
The following issues are raised on appeal:
1. Whether appellant’s statements and conduct were protected.
2. Whether Section 45-8-101, MCA, is void for vagueness and overbreadth.
3. Whether appellant’s statements and conduct establish the necessary elements of disorderly conduct under Section 45-8-101, MCA.
4. Whether the District Court erred in denying appellant’s motion to dismiss for failure of the respondent to establish a prima facie case.
The testimony of the parties conflict. The following facts come primarily from the testimony of Joseph Carlson, his son, Mike Carlson, and his wife, Cathy Carlson.
Appellant Earl Batten was charged with the misdemeanor crime of disorderly conduct as a result of his actions on the night of April 21, 1984. On that date, Batten owned a business named Rimrock Honda, which was located next to an open field. On the other side of the open field and across the street, approximately one-half block away, the Joseph Carlson family resides. The Dennis Gambill family lives next door to the Carlsons.
On the night of April 21, 1984, at approximately 8:30 p.m., the Carlsons sent their fifteen-year-old son, Steve, to Buttrey’s food store for some milk. Buttrey’s is located across the street, across the field, and on the other side of Batten’s property from the Carlson residence. The open field and Batten’s property were routinely used by pedestrians as a route from the residential area to Buttrey’s and the other stores. As Steve left the house to go to Buttrey’s, Joseph Carlson watched him from the front window. Although it was dark out, the area was illuminated by a sign on appellant’s property. As Joseph Carlson watched his son walk toward Buttrey’s, he noticed a person standing by a cluster of small trees near the route followed by Steve. As Steve started down a path across the field, the person by the trees started to follow the boy. This activity concerned Joseph and he called his wife, Cathy Carlson, to the window. She saw the figure of the person in the shadow of the trees. At that point, neither Joseph nor Cathy Carlson could identify the figure.
After seeing the figure follow his son, Joseph Carlson believed his son might be in danger. He therefore ran outside after picking up a golf club for protection and started after Steve. At that time his nineteen-year-old son, Mike Carlson, drove into their driveway. Mike Carlson joined his father, and both followed Steve to make sure that the unidentified figure would not harm the younger boy.
As Steve continued on the path, Cathy Carlson went outside onto the driveway. On her way out, she grabbed a pair of binoculars to help her see the confrontation.
It then appears that appellant stopped and waited for Joseph and Mike Carlson to overtake him. There ensued a verbal battle in which appellant ordered the Carlsons off his property. The Carlsons left appellant’s property, but appellant continued his verbal attack calling Joseph Carlson a communist government worker, no good son-of-a-bitch, chickenshit, and m-r. Appellant said, “Fight me. Hit me. You have a golf club. Come on. I want to fight you.” Appellant’s voice had become loud and he started laughing at the Carlsons. He continued to swear and challenge the Carlsons. Joseph Carlson testified to at least five people turning around and looking in their direction from an adjacent commercial parking lot.
Meanwhile, Cathy Carlson was observing the commotion from the Carlsons’ front yard. She heard a loud “f — k you.” Although she does not know who said that, she knows it was not her husband’s or her son’s voice. She could hear that particular language clearly, and it came from the area where appellant and her husband were. Cathy Carlson was afraid for her family and called their next-door neighbors, the Gambills. The Gambills came outside and testified to hearing the yelling and that it was loud, although they could not make out individual words.
Mike Carlson was angered by appellant’s profanity and challenges and told his father he was going to hit appellant. Joseph grabbed Mike and told him to go and get his brother at Buttrey’s instead. Mike followed his father’s orders. Appellant continued to yell at Joseph. After three or four minutes of this, Joseph attempted to walk home. He planned to get his car and drive over to Buttrey’s to pick up his sons so that they would not have to confront appellant again. Appellant yelled after Joseph “come back and fight you m-r. I want to get it over with.” Joseph started to walk faster, and appellant started to follow him. Joseph then ran the rest of the way to his house. Joseph and Gambill then drove to Buttrey’s to pick up the boys.
Just after Cathy Carlson called the Gambills, she called the police. Officer Keith Richard Buxbaum was dispatched to the Carlsons’ residence in response to the call. When Officer Buxbaum arrived along with Officer Barta, the incident was over. The police searched the area for appellant but could not find him. Officer Buxbaum then requested a warrant for appellant for disorderly conduct in his report. Appellant was arrested on May 3, 1984.
Appellant was charged under Section 45-8-101, MCA, which provides:
“Disorderly conduct. (1) A person commits the offense of disorderly conduct if he knowingly disturbs the peace by:
“(a) quarreling, challenging to fight, or fighting;
“(b) making loud or unusual noises:
“(c) using threatening, profane, or abusive language;
“(2) A person convicted of the offense of disorderly conduct shall be fined not to exceed $100 or be imprisoned in the county jail for a term not to exceed 10 days, or both.”
I
The first two issues presented by appellant concern his constitutional right of free speech and whether or not the statute is unconstitutionally vague and overbroad. This Court recently considered similar issues in City of Whitefish v. O’Shaughnessy (Mont. 1985), [216 Mont. 433,] 704 P.2d 1021, 42 St.Rep. 928. In that case we expressly declined to construe Section 45-8-101, MCA, because appellant in that case was charged under a Whitefish municipal ordinance rather than the statute. However, O’Shaughnessy remains Montana’s primary precedent concerning statutes or ordinances which seek to preserve the peace through regulation of loud, profane, and threatening speech. In this decision, we will consider the specific facts and construe Section 45-8-101(1), MCA, in light of the principles we espoused in O’Shaughnessy.
In O’Shaughnessy we were presented with the following ordinance:
“Whitefish Municipal Ordinance, 9.64.010. No person within the municipality, or within three miles of the municipal limits, shall willfully and maliciously disturb the peace and quiet of any street, neighborhood, family, or person by loud, tumultuous noise, or by tumultuous or offensive conduct, or by using offensive, loud radio or television sets, or by threatening, quarreling, scolding, hallooing, hollering, challenging to fight, or fighting, or by cursing, swearing, uttering obscene, profane, vulgar, or indecent language in the presence of any person or persons, or by committing any obscene, vulgar, indecent, or lewd act in any public place, or in view of any person or persons.”
The appellant’s charge and conviction under this ordinance stemmed from his offensive statement to a police officer, that is, “Well, m-, I will holler and yell when and wherever I want to . . .” We upheld the conviction holding that the jury properly found that appellant’s speech constituted “fighting” words which are not protected by the Constitution, Chaplinsky v. New Hampshire (1942), 315 U.S. 568, 62 S.Ct. 766, 86 L.Ed. 1031, and by narrowly construing the ordinance as only applying to words that have a direct tendency to violence and which are willfully and maliciously uttered. Under this narrow construction Whitefish’s ordinance is not unconstitutional for vagueness and overbreadth because it is only applicable to unprotected speech. See Gooding v. Wilson (1972), 405 U.S. 518, 92 S.Ct. 1103, 31 L.Ed.2d 408.
As just discussed, “fighting words” are not constitutionally protected speech. The right of free speech is not absolute. Chaplin-sky, 315 U.S. at 571. A state has the power constitutionally to punish “fighting words” under carefully drawn statutes not susceptible of application to protected expression. Gooding, 405 U.S. at 522.
In O’Shaughnessy we approved the following jury instructions regarding “fighting words”:
“You are instructed that the words and language of the defendant must have been of such nature that men of common intelligence would understand would be words likely to cause an average person hearing such words to fight. Threatening, profane, and obscene words, said without a disarming smile, are generally considered to be ‘fighting words.’ ”
The appellant, by the City’s version of the encounter, repeatedly called Carlson a number of profanities and a communist government worker, and also challenged him to fight. Appellant’s language and conduct nearly provoked Mike Carlson to fight and so concerned Joseph Carlson that he ran from the confrontation. This Court holds that appellant’s speech and conduct constituted “fighting words” that are unprotected by the constitution.
Having thus determined that appellant’s right to free speech did not entitle him to conduct himself as he did, we now turn to the statute to determine whether it is vague or overbroad and facially invalid. A statute may be held unconstitutional if it is vague and overbroad. 12 A.L.R.3d 1448. Vagueness and overbreadth are related concepts often spoken of together. A statute must be drawn with sufficient clarity and definiteness to inform persons of ordinary intelligence what actions are proscribed (vagueness) and it cannot be susceptible of reaching constitutionally protected activity (vagueness and overbreadth). In O’Shaughnessy we also discussed vagueness and overbreadth doctrine and concluded that invalidation of a potentially vague or overbroad statute can be avoided by a narrow construction of the statute. Statutes or ordinances regulating expressive conduct must be carefully drawn or authoritatively construed to punish only unprotected forms of speech. Wurtz v. Risley (9th Cir. 1983), 719 F.2d 1438. We therefore construed the Whitefish ordinance narrowly to apply only to words that have a direct tendency to violence and which are willfully and maliciously uttered.
The disputed portion of Section 45-8-101, MCA, is very similar to the Whitefish ordinance we upheld in O’Shaughnessy. The only difference of any substance is that the ordinance requires the elements of willful and malicious whereas the statute substitutes “knowingly” for those intent elements. Such a substitution is explained by the fact that Montana’s Penal Code revamped common law intent requirements and no longer utilizes terms like “willfully and malicious” but replaced such terms with “purposely” and “knowingly.” 37 Mont.L.Rev. 401. If anything, the statute’s utilization of the intent element of “knowingly” rather than “willfully and maliciously” makes the statute less vague than the ordinance because Section 45-2-101(33), MCA, specifically defines “knowingly.” Use of the intent element of “knowingly” does not render the statute unconstitutionally vague.
We now construe Section 45-8-101(1), MCA, as only applying to words that have a direct tendency to violence and which are knowingly uttered. So construed, the statute is not unconstitutional on its face for vagueness or overbreadth.
II
Appellant next alleges that his words and actions were not sufficient to support a charge of disorderly conduct. Appellant disputes what the jury chose to believe and alleges that the testimony could not establish the elements delineated in the statute under which he was charged. Specifically, appellant alleges that the elements of “disturbing the peace” and “using threatening, profane, or abusive language” were not established.
This Court will not substitute its judgment for that of the jury; a jury which, in this case, was able to view firsthand the evidence presented, observe the demeanor of the witnesses and weigh the credibility of each party. The facts stated at the outset of this opinion are sufficient to support the verdict of the jury. We hold that those facts are sufficient to establish the elements of disorderly conduct as enumerated in Section 45-8-101, MCA.
Appellant questions whether his behavior could constitute “disturbing the peace” under the statute. He quotes the Criminal Law Commission Comments under Section 45-8-101, MCA, which require that in order for conduct to disturb the peace, the behavior must disturb “others” and that it is not sufficient that a single person or a very few persons have grounds for complaint. Appellant argues that there were not sufficient people present to constitute “others” and that therefore he could not have disturbed the peace.
Although we have never decided how many people must be disturbed before the peace is disturbed, one Montana case involving the crime of breach of the peace, former Section 94-4560, R.C.M. 1947, provides guidance. In State v. Turley (1974), 164 Mont. 231, 521 P.2d 690, Turley’s conviction for disturbing the peace was upheld. Section 94-3560, R.C.M. 1947, prohibited disturbances of the peace by “loud or unusual noise or tumultuous or offensive conduct or threatening, quarreling, challenging to fight or fighting.” Turley was convicted under this statute when only he, his wife, and a third party were present to witness his conduct.
In the instant case, not only did appellant directly confront and threaten Joseph and Mike Carlson by calling them names, using profanity, threatening and trying to get them to fight him, but the commotion initiated by appellant also drew the attention of more persons. The neighbors of the Carlsons and Cathy Carlson could hear the appellant’s yelling from a half block away. Cathy Carlson heard appellant yell “f — k you” at her husband and son. At least five people in the Buttrey’s parking lot turned around and looked in the direction of the commotion. We hold that sufficient people were disturbed by appellant’s conduct to constitute a disturbance of the peace.
The next element which appellant argues has not been sufficiently proven to support his conviction is his use of “threatening, profane, or abusive language.” In this opinion we have already construed this element as applying only to words that have a direct tendency to violence. We hold that appellant’s conduct and speech as outlined earlier in this opinion were sufficiently offensive as to provoke violence in others. Any reasonable man would be outraged by appellant’s conduct.
Ill
Finally, appellant argues that the trial court committed reversible error in denying his motion to dismiss for failure of plaintiff to establish a prima facie case. Since we have held that a prima facie case was established, there is no need to deal with this contention further.
The judgment is affirmed.
MR. JUSTICES HARRISON, WEBER, MORRISON and GULBRANDSON concur.
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MR. JUSTICE DALY
delivered the opinion of the court.
Defendants Charles and George Petranek appeal from an order of the District Court, Fergus County, denying their motion for a new trial.
This case involves a dispute over a fourteen mile roadway across plaintiff Edward Butcher’s land which Petraneks, owners of a neighboring tract, had used for some years with Butcher’s permission. This same roadway was subject of a quiet title action previously before this Court. Taylor v. Petranek (1977), 173 Mont. 433, 568 P.2d 120. In that case, this Court held that Petraneks did not have an easement in the road.
At the time the quiet title action was pending in the District Court, Butcher had planted the road over with wheat. Although Petraneks were fully aware that the matter was in litigation, on May 24, 1976, they trespassed on Butcher’s land with a road grader and plowed a swath through the wheat field, approximately where the road had once been, before they were run off by Butcher. The swath plowed by Petraneks was about one-half mile long, twelve feet wide, and some four to six inches deep, thus stripping the topsoil.
On May 28, 1976, Butcher filed a complaint in the District Court praying for $ 1000 in actual damages to the land, $50,000 in punitive damages for injury to the land, $150 in actual damages for loss of the wheat crop damaged by the grader, and $50,000 in punitive damages for malicious destruction of the crops. Butcher also sought injunctive relief, which was granted and is not an issue on appeal.
Evidence adduced at trial indicated that when Butcher evicted Petraneks from his land, a somewhat violent altercation took place. Butcher claimed that George Petranek, who was driving a pickup behind the road grader driven by Charles Petranke, rammed the horse Butcher was riding with the pickup. Butcher also testified that both Petraneks and their hired hand, who was riding in the pickup, advanced threateningly toward him, with Charles Petranek grabbing for Butcher’s legs as he sat on his horse. Butcher testified he had to threaten Petraneks with a .22 caliber pistol before they would leave.
Other evidence established that Petraneks had several times in the past cut Butcher’s fences and trespassed across his land. It was also shown that Petraneks are quite wealthy, having holdings (consisting chiefly of ranch and farmlands and rental properties in Lewistown) totaling more than $1,500.00.
On May 5, 1978, after a jury trial with the Honorable Bernard W. Thomas presiding, a verdict was returned in favor of Butcher. The jury awarded $825 actual damages with $10,000 punitive damages for damage to the land, and $100 actual damages with $10,000 punitive damages for destruction of the crops. Petraneks subsequently moved for a new trial on the ground that the award of punitive damages was excessive and given under the influence of passion and prejudice. The District Court denied the motion, and Petraneks appeal.
The issue on appeal is simply: Were the punitive damages awarded to Butcher by the jury excessive? Petraneks argue they were and therefore this Court must either reduce them or order a new trial.
In approaching this issue, we note that Petraneks are not challenging the award or amount of actual damages, totaling $925.
Neither are they challenging the award of punitive damages itself; they apparently concede that some award of punitive or exemplary damages is proper.
What Petraneks are challenging is the amount of the punitive damages awarded. Their argument essentially is that the amount of punitive damages awarded here ($20,000) is “patently excessive” to the point that “there can be no other conclusion than that the jury was influenced by passion, prejudice, or from improper motive.”
The law governing punitive or exemplary damages is well developed in Montana and has been followed with unerring consistency by this Court. Since first enacted in 1895, section 17-208, R.C.M.1947, now section 27-1-221 MCA, has read;
“In any action for a breach of an obligation not arising from contract, where the defendant has been guilty of oppression, fraud, or malice, actual or presumed, the jury, in addition to the actual damages, may give damages for the sake of example, and by way of punishing the defendant.”
From the numerous cases construing this section, general principles for its application may be derived. An early, yet relatively complete, statement of these basic principles is found in De Celles v. Casey (1914), 48 Mont. 568, 576, 139 P. 586, 588:
“The amount to be awarded in this class of cases is lodged in the. discretion of the jury; but this discretion is not unlimited or to be exercised arbitarily. It will not do to say that the jury are free to make the measure of punishment whatever they choose, without any just or reasonable relation to the wrong done. No definite rule can be declared as to when the court should interfere and when it should not; yet since a new trial may be ordered when it appears that the jury have acted under the influence of passion and prejudice (Rev.Codes, sec. 6794), it follows that when the award is so large that it cannot be accounted for on any other theory and is wholly out of proportion to the wrong done and the cause of it, the conclusion is irresistible that it was measured by the passion and prejudice of the jury, rather than by an estimate made in the exercise of their discretion, and it becomes the duty of the court to set it aside.” .
Accord, Cornner v. Hamilton (1922), 62 Mont. 239, 245, 204 P. 489, 491.
In describing the necessary elements to justify such an award, this Court a few years later stated:
“A guilty intent on the part of the defendants is an essential to charge them with exemplary damages . . . ‘While every legal wrong entitles the party injured to recover damages sufficient to compensate for the injury inflicted, not every legal wrong entitles the injured party to recover exemplary damages. To warrant the recovery of such damages the act complained of must not only be unlawful, but must also partake somewhat of a criminal or wanton nature. And so it is an almost universally recognized rule that such damages may be recovered in cases, and only in such cases, where the wrongful act complained of is characterized by some such .circumstances of aggravation as willfulness, wantonness, malice, oppression, brutality, insult, recklessness, gross negligence, or gross fraud on the part of the defendant.’ (8 R.C.L. 585, 586.)” Luther v. Lee (1922), 62 Mont. 174, 179, 204 P. 365, 367.
The jury may also take into account whether the acts complained of are “of such a character as to indicate a reckless disregard of the rights of the plaintiff” in awarding a “reasonable amount” of punitive damages. Mosback v. Smith Brothers Sheep Co. (1922), 65 Mont. 42, 46-47, 210 P. 910, 912.
Elaborating further on the concept of malice, we stated in 1927 that:
‘Malice, as a basis for exemplary damages, may be proved directly or indirectly; that is to say, by direct evidence of the evil motive and intent or by legitimate inferences to be drawn from other facts and circumstances in evidence.’ (Klind v. Valley County Bank, 69 Mont. 386, 222 P. 439.) ‘The term “malice,” as applied to torts, does not necessarily mean that which must proceed from a spiteful, malignant or revengeful disposition but a conduct injurious to another, though proceeding from an ill-regulated mind, not sufficiently cautious before it occasions an injury to another. * * * If the conduct of the defendant was unjustifiable and actually caused the injury complained of by plaintiff, which was a question for the jury, malice in law would be implied from such conduct . . .’ ” Ramsbacher v. Hohman (1927), 80 Mont. 480, 487-88, 261 P. 273, 276.
“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. (1978), 177 Mont. 122, 580 P.2d 915, 921.
In Ramsbacher, we went on to discuss the factors properly considered by a jury in setting the amount of damages and our function in reviewing the award:
“Having concluded the jury was within its rights in allowing exemplary damages, arises the question: Is the amount allowed on either cause of action excessive? The amount was largely in the discretion of the jury. :The general rule is that an award of exemplary damages by a jury will not be disturbed as excessive, unless its amount considered in connection with the facts, is indicative of passion, prejudice or corruption on the part of the jury. * * * The jury should take into consideration the attendant circumstances, such as the malice or wantonness of the act, the manner in which it was committed, the injury intended, the motive for the act, the manner in which it was committed and the deterrent effect upon others. * * * According to the general rule, it is proper for the jury to consider defendant’s wealth and pecuniary ability in fixing the amount of damages. ’ (17 C.f. 994, 995.) There is evidence on all those points and it is presumed the jury considered it. ‘The public good in the restraint of others from wrongdoing, as well as the punishment of the offender, is to be considered in estimating exemplary damages.’ (Ward v. Ward, 41 Iowa 686.) Based on those determinative factors and general principles, in this state the rule is that the amount of exemplary damages must be reasonable. ‘Where the acts complained of are shown to be wanton, malicious or oppressive and of such a character as to indicate a reckless disregard for the rights of the plaintiff, the jury, in their discretion, may award a reasonable amount as the punitive damages, in addition'to compensatory damages.’ (Mosback v. Smith Brothers Sheep Co., 65 Mont. 42, 210 P. 910.) What was reasonable was for the jury to say, subject to the judgment of the trial court, upon motion for new trial, and the judgment of this court, upon appeal. Being a matter for the discretion of the jury, we do not see that the discretion was abused. We will not say the award is excessive nor that it is indicative of passion or prejudice nor that, under all the circumstances and in view of plaintiff s version of the case (accepted by the jury), it is even unreasonable. ” 80 Mont. at 489-90, 261 P. at 277. (Emphasis added.)
Petraneks argue that the amount of punitive damages awarded here is per se excessive because they are approximately twenty-two times the amount of the actual damages awarded. We rejected any such “mathematical ratio” approach to calculating punitive damages in Johnson v. Horn (1929), 86 Mont. 314, 318-19, 283 P. 427, 429:
“. . . The courts have not established a definite formula to be followed in ascertaining whether an award for exemplary damages is excessive. As a consequence many courts hold that because an award of punitive damages is ten times the amount of actual damages awarded, as here, does not of itself demonstrate that the award is excessive.
“An award of $1,000 exemplary damages might be excessive under certain facts and as against one of impoverished circumstances, and yet reasonable under different circumstances and as against one of more favorable financial condition.”
Further, punitive damages may be awarded in cases where only nominal actual damages are awarded or even where no monetary value is placed on the actual damages suffered. Miller v. Fox (1977), 174 Mont. 504, 571 P.2d 804, 808. It is therefore inconsistent to establish some mathematical formula or ratio for determining the amount of such punitive damages.
We have quoted extensively from these older decisions (and there are many others equally applicable) to illustrate that the principles governing this appeal are very well established and have been consistently applied. Applying these time-honored principles to the facts at hand, we conclude that the award of $20,000 in punitive damages against Petraneks is reasonable and supported by the evidence.
Undisputedly, Petraneks, with full knowledge or relevant pending litigation and gross disregard for the rights and property of Butcher, drove a road grader onto the latter’s property and deliberately plowed a half-mile long, twelve foot wide swath through his growing wheat crop. The jury also heard Butcher' testify that, when he rode up to confront the Petraneks, George Petranek rammed his pickup truck into Butcher’s horse and Charles Petranek grabbed at Butcher’s legs as if to pull him off his horse. From this set of facts, the jury was fully entitled to conclude that the Petraneks acted extremely maliciously.
Entering into the calculation of damages at this point is the wealth of the Petraneks. The jury was informed as to the large holdings of the defendants totaling more than $1.5 million. In determining what would be a suitable punishment (a legitimate statutory purpose) for the acts of the Petraneks, the jury could reasonably calculate that any smaller award would not be sufficient. Such a conclusion was for the jury to make after listening to the testimony and weighing the evidence. On appeal, wé will not disturb that conclusion.
Finally, Petraneks’ assertion that the award of punitive damages was the result of passion or prejudice on the part of the jury is unsupported by any reference to the record, to improvident remarks by counsel or witnesses for Butcher, to incorrect objectionable jury instructions, or to any other source. Petraneks accept that the jury acted reasonably in assessing the total actual damages suffered by Butcher at $925 out of a prayer for $1150. In the absence of any showing of the possible sources of passion or prejudice, it is inconsistent to assume that a jury, acting reasonably in assessing actual damages so precisely, suddenly was overcome by passion and prejudice in assessing punitive damages.
The judgment is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON and SHEEHY concur.
MR. JUSTICE SHEA deeming himself disqualified, did not participate in this decision.
|
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MR. JUSTICE HASWELL
delivered the Opinion of the-Court.
This is an action at law for damages by an injured employee-against his employer and a group disability insurance company. The district court of Cascade County granted the employer’s motion to dismiss the complaint without leave to-amend and entered judgment thereon. The injured employee-appeals from the judgment.
The issue is whether the Montana Workmen’s Compensation Act is the employee’s exclusive remedy precluding an action at law for damages. The district court held it is. We agree.
Plaintiff is Carl N. Carlson, a salaried employee of defendant, The Anaconda Company, at its Great Falls plant. The-other defendant, Metropolitan Life Insurance Company, is a, private insurance company which provided long term disability benefits to Anaconda’s employees under a group disability-policy.
According to the complaint, Carlson was injured in an industrial accident on August 20, 1972, while employed by Anaconda and has been totally disabled since. Anaconda is a self-insurer under Plan I of the Montana Workmen’s Compensation Act. Metropolitan and Anaconda had previously entered into an agreement whereby Metropolitan insured Anaconda’s employees for long term disability. Under the policy provisions, Metropolitan was to pay disabled Anaconda employees 70% of their base monthly salary after total disability of one year.
Anaconda paid Carlson temporary total disability payments' under the Workmen’s Compensation Act for the first year. Since August 20, 1973, according to the complaint, Anaconda has paid no Workmen’s Compensation benefits and Metro politan has paid no monthly disability insurance benefits although each has known that Carlson remained totally disabled.
The complaint alleges that on September 6, 1973, the Workmen's Compensation Division wrote Anaconda requesting them to maintain Carlson on temporary total disability benefits. Anaconda replied, according to the complaint, as follows:
“Mr. Carlson is on the salary roll of The Anaconda Company at the Great Falls plant. He is covered by a long term disability benefit. We paid Mr. Carlson full salary for six months and 70% of his salary for the second six months. From these payments we subtracted the amount of money that was paid to him as temporary total disability compensation payments. Mr. Carlson is continuing to receive the ’70% of his regular salary and if we place him back on temporary total, then we will deduct these payments from his monthly check. He will end up with the' same amount of money being paid to him and I would prefer to leave him off our compensation rolls and eventually make a settlement when we receive Dr. Tom Powers’ evaluation report.”
According to the complaint, Anaconda (1) failed and refused to make the Workmen’s Compensation payments to which Carlson was entitled, and (2) fraudulently, maliciously, wrongfully and deliberately gave false information to the Workmen’s Compensation Division by asserting that Carlson was continuing to receive 70% of his regular salary. In passing, we note that during oral argument it was brought out "that Anaconda failed to pay because of a mix-up in their records which has since been corrected and payments made.
The complaint alleges that Metropolitan breached the provisions of their insurance policy and violated the insurance statutes of Montana in failing and refusing to make the monthly disability payments.
Carlson seeks payment of all benefits due under the Workmen’s Compensation Act and the group disability policy, $1,000,000 exemplary damages against each defendant, and costs.
Anaconda moved to dismiss the complaint on the ground that it failed to state facts sufficient to constitute a claim for relief against Anaconda. After hearing, the district court granted this motion without leave to amend and entered judgment for Anaconda against Carlson. Carlson’s claim against Metropolitan remains pending.
Carlson has appealed contending that the Workmen’s Compensation Act is not his exclusive remedy, but that he has an action at law. He contends that Anaconda, after first having elected to be bound by the Workmen’s Compensation Act, breached and abrogated the Act by substituting its own insurance program and accordingly should be considered an insurer and subject to the penalties of the state insurance statutes. Carlson cites Reed v. Hartford Accident & Indemnity Company, D.C., 367 F.Supp, 134 (1973), in support.
Where both employer and employee have elected to come under the Montana Workmen’s Compensation Act, the provisions of the Act are exclusive. Section 92-204, R.C.M.1947, as amended.' The same statute, in effect on the date of the injury, expressly provides that the employee surrenders any other compensation or action at law for his injuries against his employer, subject to exceptions not pertinent to Carlson’s claim.
Anaconda’s obligation as a Plan I self-insurer is to pay Carlson the Workmen’s Compensation benefits provided by the Act. If it does not, Carlson’s remedy is with the Workmen’s Compensation Division. Section 92-821, R.C.M.1947. In case of nonpayment of benefits under the Act, it is the duty of the Workmen’s Compensation Division to apply the employer’s deposits to payment (section 92-906, R.C.M.1947) including a 10% penalty for unreasonable delay (section 92-824.1, as amended).
Anaconda’s obligation to pay compensation under the-Act is neither increased nor diminished by the Metropolitan group disability policy. This policy is collateral to Workmen’s Compensation benefits and irrelevant to the obligations of the employer under the Act. That benefits under the policy may be reduced by the amount of compensation paid under the Act is proper to prevent duplication of wage-loss benefits and does not alter the employer’s obligation under the Act. See Larsen, Workmen’s Compensation, Yol. 3, § 97.10 et seq.
Accordingly, Anaconda has neither breached nor abrogated the Act by substituting its own insurance program, nor has it become an insurance company by reason of contracting with Metropolitan for a long term group disability policy for its employees.
Reed, cited by plaintiff, is distinguishable on the facts. There the action at law was against the employer’s Workmen’s Compensation insurance carrier based on independent intentional torts and breach of an express contract to pay total disability benefits by false, fraudulent and perjured means. This is a far cry from the facts here, and the attempted analogy fails.
The judgment of the district court in favor of Anaconda is affirmed. The case is remanded to the district court for further proceedings against the remaining defendant.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES JOHN C. HARRISON, CASTLES and DALY, concur.
|
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JUSTICE HUNT
delivered the Opinion of the Court.
This is an appeal from the First Judicial District, Lewis and Clark County, regarding the enforcement of a dissolution agreement entered into by respondent Janice C. Hahn, f/k/a Janice Cladouhos, and appellant Thomas P. Cladouhos. The District Court found that under the terms of the dissolution agreement Thomas was obligated to pay Janice the maintenance payments which were part of the property settlement. The District Court denied Thomas’s motion to dismiss Janice’s motion to enforce the property settlement based on the doctrine of laches, and also denied both parties their attorney fees. Thomas appeals from the order of the District Court.
We affirm.
We restate the issues as follows:
1. Did the District Court err when it denied Thomas’s motion to dismiss Janice’s pleading to enforce the maintenance provision, based on the doctrine of laches?
2. Did the District Court err when it found that the maintenance payments were part of the property settlement that did not terminate upon Janice’s remarriage pursuant to § 40-4-208(4), MCA?
3. Did the District Court err by failing to award Thomas his reasonable costs and attorney fees incurred in enforcing the court’s prior order?
Thomas and Janice were married in June 1965. Two children were bom to the couple, with one minor child living at home at the time of the dissolution in 1990. The couple had a hostile and difficult period of negotiations before agreeing to the custody, support, and property settlement agreement which was incorporated into the decree of dissolution on October 2, 1990.
The agreement provides that the couple would pay specific amounts to each other as a distribution of the marital estate property. Paragraph 8 of the agreement provides that the family home be awarded to Janice with the requirement that Janice compensate Thomas for half of the estimated realtor fee of $4200 if Janice did not sell the family home within two years of the agreement. Paragraph 18(a) provides that Thomas pay to Janice monthly payments of $650 for 15 months, beginning November 1990 “for her own support, care and maintenance.” Also, paragraph 18(b) provides that the funds in 18(a) are in the nature of a property settlement. Paragraph 18(b) adds that the payments under 18(a) are considered maintenance for tax purposes.
On July 25, 1991, Janice remarried and Thomas immediately stopped making the maintenance payments, claiming that maintenance payments automatically discontinue upon her remarriage pursuant to § 40-4-208(4), MCA. Thomas demanded that Janice pay the required realtor fee of $4200 pursuant to paragraph 8 of the agreement because she did not sell the family home within two years of the agreement. Janice tried to resolve the matter by offering to offset the delinquent maintenance payments against the realtor fee. Thomas refused the offer.
On December 15, 1992, Thomas filed a motion with the District Court requesting that it hold Janice in contempt for failure to comply with the agreement and order her to pay him $4200 for half the realtor fees. Thomas also requested costs and attorney fees allowed by the agreement.
On January 15, 1993, Janice filed a cross-motion for contempt requesting the court hold Thomas in contempt for failure to pay maintenance as provided by the agreement, claiming that he owed her six property settlement payments totaling $3900. On February 16, 1993, Thomas filed a motion to dismiss Janice’s motion based on the doctrine of laches, that Janice, without adequate explanation, failed to timely pursue court action to enforce these payments, rendering the enforcement of her asserted rights inequitable.
On April 15,1993, the matter was heard by the District Court with both parties offering testimony and evidence. On April 16, 1993, the court issued its findings of fact, conclusions of law, and order and memorandum. The order denied both parties’ motions to hold each other in contempt, and denied Thomas’s motion to dismiss Janice’s motion based on laches. The court found that the maintenance payments were part of the property settlement, and that Thomas was delinquent on five payments and owed Janice $3250, and Janice owed Thomas $4200 for half the realtor fee. Thomas was entitled to $950, which was the difference between the $4200 Janice owed him, and the $3250 he owed Janice. The court also ordered that both parties pay their own costs and attorney fees.
On May 3, 1993, Thomas filed a motion to reconsider, which the court denied. Judgment was entered against Thomas, and he appeals.
ISSUE I
Did the District Court err when it denied Thomas’s motion to dismiss Janice’s pleading to enforce the maintenance provision, based on the doctrine of laches?
Section 1-3-218, MCA, provides that “[t]he law protects the vigilant before those who sleep on their rights.” Laches is a concept of equity that can apply when a person is negligent in asserting a right, and can apply where there has been an unexplained delay of such duration or character as to render the enforcement of the asserted rights inequitable. Fillner v. Richland (1991), 247 Mont. 285, 290, 806 P.2d 537, 540. Each case must be determined on its own unique facts. Fillner, 806 P.2d at 540.
This case involves a written dissolution agreement. Section 40-4-201(5), MCA, provides that marital or property settlement agreements are enforceable as contracts. See also, In Re Marriage of McKeon (1992), 252 Mont. 15, 18-19, 826 P.2d 537, 540. The statute of limitations to enforce a written contract is eight years. Section 27-2-202(1), MCA. When a claim is filed within the time limit set by the analogous statute, the defendant bears the burden to show that extraordinary circumstances exist which require the application of laches. McGregor v. Mommer (1986), 220 Mont. 98, 107, 714 P.2d 536, 542.
Here, Janice filed her claim to enforce the maintenance payments 15 months after Thomas stopped making the payments. Her filing was within the eight year statutory time limit. Therefore, Thomas bears the burden to show that extraordinary circumstances exist which require the application of laches.
Thomas argues that the maintenance payments to Janice automatically terminated upon Janice’s remarriage. Janice knew his position and she sat on her rights for 15 months and did not pursue court action to enforce the payments until January 15, 1993. He asserts that the District Court erred when it found that Janice had a reasonable explanation for the delay, and further, it was inequitable for the court to uphold her claim.
Thomas failed to provide facts to prove that Janice’s delay was unexplained. The District Court examined the circumstances surrounding the delay and in its findings stated the following:
13. When Tom ceased making the maintenance payments, Jan wrote Tom regarding this fact. She did not, however, commence court action. She testified that she did not start court action because it could be expensive; that their daughter Camille was having problems and that she thought the friction between the two parents was damaging their daughter; and that she did not want to damage their daughter further.
The District Court’s findings are supported by the record. The record shows that when Thomas stopped making payments, the couple was still involved in hostile conversations concerning custody and visitation. Additionally, the couple’s daughter was troubled about the friction between them and was seeing a counselor. The couple attended counseling sessions attempting to recover from the misunderstandings created from the dissolution process. Janice attempted to reconcile the disagreements, hoping to avoid litigation which would increase the friction between them. She discussed the delinquent payments personally with Thomas, and through additional conversa tions and written correspondence between the parties’ counsel. Because Thomas failed to allege facts that prove the delay was unexplained, the District Court properly found that Janice presented a reasonable explanation for the delay, especially in view of the daughter’s adjustment to a difficult and hostile dissolution that ended a 25-year marriage.
Thomas argues that the delay of 15 months was of such duration or character as to render the enforcement of Janice’s claimed rights inequitable. In support of his claim, Thomas contends that the delay “muddied the waters.” However, he offers no evidence as to what issues or circumstances were “muddied,” or what harm or inequity he suffered from the delay and the subsequent enforcement of Janice’s claim. Janice contends that the agreement explicitly authorizes delay, and provides that the failure to insist upon the performance of the agreement provisions does not constitute a waiver or relinquishment of that provision. Paragraph 24 of the agreement in pertinent part states:
Any waiver by either party of any provision of this agreement or any right of operation under it is not controlling, nor may it prevent or estop a party from later enforcing the provision, right, or option, and the failure of either party to insist in any one or more instances upon the strict performance of any of the terms or provisions of this agreement by the other party may not be construed as a waiver or relinquishment for the future of that term or provision, but rather the term or provision shall continue in full force and effect. Under the facts of this case, the District Court properly denied
Thomas’s motion to dismiss Janice’s pleading to enforce the maintenance provision based on the doctrine of laches. We affirm the District Court on this issue.
ISSUE 2
Did the District Court err when it found that the maintenance payments were part of the property settlement that did not terminate upon Janice’s remarriage pursuant to § 40-4-208(4), MCA?
Thomas argues that the District Court erred when it found that § 40-4-208(4), MCA, does not apply because the agreement provided that the payments owed to Janice were not considered maintenance, but were part of the property settlement. Section 40-4-208(4), MCA, provides that:
Unless otherwise agreed in writing or expressly provided in the decree, the obligation to pay future maintenance is terminated upon the death of either party or the remarriage of the party receiving maintenance.
As proof that the couple agreed that his maintenance obligation would stop upon Janice’s remarriage, Thomas refers to correspondence exchanged between counsel before the final agreement was reduced to writing. Further, he argues that § 40-4-208(4), MCA, requires specific language in the agreement that maintenance will not terminate upon Janice’s remarriage, and that the final agreement did not contain this specific language. Therefore, the statute automatically terminated the maintenance payments upon her remarriage.
Contract law requires that whenever the terms of an agreement have been reduced to a writing, and if the written agreement is unambiguous, the content of the written agreement is evidence of the terms. Section 28-2-905(1), MCA. The District Court, in its findings, considered the following correspondence proposed by Janice’s counsel before the final agreement:
Jan will agree to accept $650.00 a month maintenance for a period of 15 months. Additionally, she will agree that the maintenance will terminate upon her death or remarriage. Based on my advice, however, she will not agree that the maintenance be modifiable. The period of time over which Tom will be paying maintenance is only slightly more than a year. It is part of the property settlement that the parties are negotiating. In view of the fact that Jan is willing to reduce her request for maintenance from five years to 15 months, it seems a fair compromise on Tom’s part to agree that it not be modifiable for those 15 months, especially in view of the fact that he is receiving a significant tax benefit as a result of characterizing this portion of the monthly support payments as maintenance.
The District Court, also considered in its findings, the following response from Thomas’s counsel:
On August 16,1990, counsel for Tom responded to Jan’s proposal. With respect to the provision on maintenance he stated: “Tom agrees with this provision as stated in your August 15th letter.”
The District Court rejected Thomas’s argument that the letters prove that the payments are maintenance which were terminated by § 40-4-208(4), MCA. The court looked to the final agreement for the contract terms. The court, in its findings, quoted the following paragraphs of the agreement:
18. MAINTENANCE AND DISTRIBUTION OF ASSETS: (a) THOMAS shall pay to JANICE for 15 months commencing on the 1st day of [the] month following the execution of this Agreement, the sum of $650.00 monthly for her own support, care, and maintenance.
(b) The sums agreed to in paragraph 18(a) are in the nature of a property settlement and are not modifiable by any subsequent court order following the dissolution of marriage, except on express written acknowledged consent of the parties. The parties further agree, however, that the payments under subparagraph 18(a) are to be considered maintenance for tax purposes.
Also, paragraph 24 of the agreement in pertinent part states:
Except as to provisions involving child custody, support, and visitation, this Agreement may not be modified by any subsequent court order following the dissolution of marriage, except on express written acknowledge^] consent of the parties.
The District Court found that § 40-4-208(4), MCA, applies to maintenance payments and does not apply in this case because the agreement, in paragraph 18(b), specifically states that the maintenance payments “are in the nature of a property settlement” that cannot be modified without the couple’s consent. Further, although the parties agreed that the payments would be considered maintenance for tax purposes, that compromise does not negate the clear language in 18(b) that the payments are part of the property settlement.
The District Court found that the language concerning termination of maintenance was not included in the final agreement, and that the final agreement controls.
We affirm the District Court’s finding that the payments were a part of the property settlement to Janice that did not terminate upon her remarriage.
ISSUE 3
Did the District Court err by failing to award Thomas his reasonable costs and attorney fees incurred in enforcing the court’s prior order?
Thomas asserts that the District Court erred in failing to award him his costs and attorney fees because he was the successful party by obtaining an opinion requiring Janice to pay the realtor fee, and that Janice was the unsuccessful party because the District Court refused her calculation of the number of payments due her. Therefore, because the agreement provides that the court shall award attorney fees to the successful party, he should have received the award. Paragraph 28 of the agreement states:
28. FUTURE ATTORNEY’S FEES: Should any action be commenced to enforce, modify, or interpret any provision of this agreement, the court, as a cost of suit, shall award a reasonable attorney’s fee to the successful party.
Janice contends that she never disputed the realtor fee. She argues that Thomas was in prior breach of the agreement when he refused to pay the maintenance payments, and that she was entitled to suspend her performance by not paying the realtor fee; therefore, he was not entitled to enforce the contract against her. She cites Liddle v. Petty (1991), 249 Mont. 442, 446, 816 P.2d 1066, 1068, which holds that a contract party is entitled to suspend performance when the other party materially breaches the contract. Janice contends that she was the successful party because the court required Thomas to pay the remaining maintenance payments as part of the property settlement, although the court disagreed with her calculations of the number of payments due.
The District Court denied Thomas’s motion to dismiss Janice’s motion for contempt, and further, found that neither Janice nor Thomas should be held in contempt. The court directed Janice to pay Thomas the realtor fee, and directed Thomas to pay Janice the unpaid property settlement payments that he owed her. Finding that under these circumstances neither party was totally successful, the District Court ordered that each party should pay its own attorney fees and costs. We affirm the District Court on this issue.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, NELSON and WEBER concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
This case involves the effect of Montana’s constitutional “right to know” and open meeting statutes on the selection and appointment of the Commissioner of Political Practices (Commissioner). Common Cause of Montana (Common Cause), a nonprofit organization that seeks to promote open, accessible and democratic government, challenged the appointment of Edward Argenbright (Argenbright) as Commissioner in the First Judicial District Court, Lewis and Clark County. Common Cause argued that the statutory committee whose function is to provide the governor with a list of names of possible candidates for the position had violated constitutional and statutory provisions guaranteeing the public a right to observe the deliberations of public bodies. Although we determine that the committee violated Montana’s open meeting statutes, we conclude, under these unique circumstances, that the violation does not require Argenbright’s removal from the office of Commissioner.
The facts surrounding this appeal are undisputed. Section 13-37-102, MCA, establishes a four-member committee to submit a list of names of possible candidates for the office of Commissioner to the governor for consideration. In 1992, the committee was comprised of Speaker of the House Hal Harper, President of the Senate Joseph Mazurek, Senate Minority Floor Leader Bruce Crippen, and House Minority Floor Leader John Mercer (the Committee). Due to an impending vacancy in the office in 1993, the Committee held several phone conversations in November of 1992 to discuss the qualifications of the individuals who had applied for the position. During a meeting held November 20, 1992, Mazurek, Crippen and Mercer discussed the individuals they would recommend for the position. Harper did not attend. The meeting was not announced to the public and was not attended by members of the public.
Following the meeting, three members of the Committee submitted a list of five names to Governor Stan Stephens. The list included Argenbright, two individuals recommended by Common Cause, and two others. Representative Harper submitted a separate list naming the two individuals recommended by Common Cause. Governor Stephens interviewed the five applicants and announced the appointment of Argenbright to the position on December 1,1992.
On December 18, 1992, Common Cause, the Helena Independent Record, and the Great Falls Tribune filed suit against the Committee and Governor Stephens (collectively, the Committee). They sought to void the Committee’s submission of the list and, on that basis, the governor’s appointment of Argenbright. They asserted that the Committee’s November 20 meeting violated Montana’s open meeting statutes and Article II, Section 9, and Article V, Section 10(3), of the Montana Constitution. They also requested a temporary restraining order prohibiting Governor Stephens from submitting the appointment to the Senate for confirmation. The District Court declined to issue the temporary restraining order on December 22, 1992.
Argenbright took the oath of office and began performing his duties as Commissioner on January 1,1993. Both parties moved for summary judgment. Following a February 9, 1993, hearing, the District Court granted summary judgment in favor of the Committee. The court determined that the governor’s appointment was not subject to the open meeting laws and, therefore, could not be voided pursuant to § 2-3-213, MCA. The court also determined that the governor’s appointment was not dependent on the actions of the Committee and, thus, could not be voided due to any flaw in the Committee’s procedures.
Common Cause and the Helena Independent Record (collectively, Common Cause) filed a notice of appeal. On March 25, 1993, the Montana Senate began confirmation proceedings which concluded on April 13,1993, confirming Argenbright’s appointment as Commissioner.
Our standard in reviewing a grant of summary judgment is the same as that initially utilized by the trial court. McCracken v. City of Chinook (1990), 242 Mont. 21, 24, 788 P.2d 892, 894. Summary judgment is appropriate when the pleadings, depositions, and other documents on file demonstrate that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.P. The parties have submitted stipulated facts and agree that only issues of law are before us. Therefore, our standard of review is whether the District Court’s interpretation of the law is correct. Mooney v. Brennan (1993), 257 Mont. 197, 199, 848 P.2d 1020, 1022.
As a threshold issue, the Committee contends that Common Cause’s claim of an alleged constitutional and statutory violation is moot because a change in circumstances prevailing at the beginning of the litigation now precludes meaningful relief. The changed circumstance, according to the Committee, is that Argenbright’s appointment has been confirmed by the Senate, vesting Argenbright with title to the office. We disagree that the claim is moot.
When faced with constitutional questions which are capable of repetition yet could avoid review, this Court will consider the merits of the issues raised on appeal. Romero v. J & J Tire (1989), 238 Mont. 146, 148, 777 P.2d 292, 294; Butte-Silver Bow Local Gov’t v. Olsen (1987), 228 Mont. 77, 82, 743 P.2d 564, 567. As we stated in Butte-Silver Bow:
[t]he exception to mootness for those actions that are capable of repetition, yet evading review, usually is applied to situations involving governmental action where it is feared that the challenged action will be repeated.
Butte-Silver Bow, 743 P.2d at 567.
Here, the alleged violation of the open meeting statutes and the public’s right to know is capable of recurring, in the context of both future selection and appointment procedures for the position of Commissioner and actions taken by other purely advisory entities. Further, to allow an alleged violation of the public’s right to know escape judicial scrutiny, simply because legal proceedings are not always swift, would soon vitiate that important right guaranteed to the people of Montana by their constitution. Thus, we conclude that the issues raised by this appeal are not moot.
The remaining legal issues are whether the Committee’s November 20, 1992, meeting violated the public’s right to know and, if so, whether such a violation requires this Court to void the entire appointment process, resulting in Argenbright’s removal from office. Regarding the first issue, Common Cause argues that the Committee’s November 20 meeting violated Montana’s open meeting statutes and Article II, Section 9 of the Montana Constitution. The District Court did not analyze this issue and, on appeal, the Committee does not address its merits.
The “right to know” is found at Article II, Section 9, of the Montana Constitution and provides:
Right to know. No person shall be deprived of the right to examine documents or to observe the deliberations of all public bodies or agencies of state government and its subdivisions, except in cases in which the demand of individual privacy clearly exceeds the merits of public disclosure.
This constitutional mandate is protected and implemented primarily through Montana’s open meeting statutes, codified at §§ 2-3-201, et seq., MCA. SJL of Montana v. City of Billings (Mont. 1993), 867 P.2d 1084, 1086, 50 St.Rep. 1726, 1727; Jarussi v. Board of Trustees (1983), 204 Mont. 131, 138, 664 P.2d 316, 319; Board of Trustees v. Board of County Comm’rs (1980), 186 Mont. 148, 152, 606 P.2d 1069, 1071. Thus, the initial question before us is whether the open meeting statutes require the meeting at issue to be open to the public. SJL, 867 P.2d at 1086, 50 St.Rep. at 1727. If so, we need not proceed to constitutional analysis; it is elementary that courts should avoid constitutional questions if an issue can be resolved otherwise. Wolfe v. Montana Dep’t of Labor and Ind. (1992), 255 Mont. 336, 339, 843 P.2d 338, 340.
The legislature’s expressed intent that the open meeting laws be liberally construed, contained in § 2-3-201, MCA, guides our interpretation of these statutes. Section 2-3-203(1), MCA, provides, in pertinent part:
All meetings of public or governmental bodies, boards, bureaus, commissions, agencies of the state, or any political subdivision of the state or organizations or agencies supported in whole or in part by public funds or expending public funds must be open to the public.
None of the listed entities are further defined in the open meeting statutes. It is clear, however, that the committee statutorily established by § 13-37-102, MCA, is not a board, bureau, or commission of the state, under any common understanding of those terms.
Additionally, while the word agency is not defined in the open meeting statutes themselves, we determined in SJL that the definition of “agency’ contained in § 2-3-102, MCA, applies to the term “agencies” used in § 2-3-203, MCA. SJL, 50 St.Rep. at 1728. Section 2-3-102, MCA, defines agency as any board, bureau, commission, department, authority, or officer of the state or local government authorized by law to make rules, determine contested cases, or enter into contracts. It is evident that the statutory committee is not authorized to make rules, determine contested cases or enter into contracts. Accordingly, the Committee is not an “agency” under § 2-3-203, MCA. Therefore, unless the Committee properly can be characterized as a “public or governmental body” under § 2-3-203, MCA, its November 20, 1992, meeting does not fall within the purview of the open meeting statutes.
As stated above, the legislature did not define “public body” or “governmental body” in the open meeting statutes. When interpreting statutes, it is fundamental that words and phrases are to be given their plain, ordinary and usual meaning. Watson & Assoc. v. Green (1992), 253 Mont. 291, 293, 833 P.2d 199, 200; Jarussi, 664 P.2d at 319. Webster’s Third International Dictionary defines “body” as a group of individuals organized for some purpose. “Public” is defined in Black’s Law Dictionary, 4th Ed. 1968, as pertaining to a state, nation or community, while “governmental” is defined similarly as pertaining to government. Thus, the common understanding of the phrase “public or governmental body” would include a group of individuals organized for a governmental or public purpose.
Section 13-37-102, MCA, which establishes the committee, provides, in pertinent part:
[a] four-member selection committee comprised of the speaker of the house, the president of the senate, and the minority floor leaders of both houses shall submit to the governor a list of not less than two or more than five names of individuals for his consideration.
Here, the Committee has a clear public and governmental purpose — to assist in the governor’s selection of a Commissioner by providing a slate of names of possible candidates for consideration. This group of individuals is statutorily organized for that specific governmental task. We conclude, therefore, that under the plain meaning of § 2-3-203, MCA, the Committee is subject to the requirements of the open meeting statutes because it is a public or governmental body.
We find support for this conclusion in case law of sister states. Laws requiring that meetings of governmental or public bodies be open to the public have been enacted in some form in every state. Delaware Solid Waste Authority v. News-Journal (Del.Supr. 1984), 480 A.2d 628, 631; Annot. 33 A.L.R.3d 1070 (1971 & Supp.1993). A common thread throughout the statutory definitions in most states is that the entity have a governmental or state function and that the entity is supported in whole or in part by public funds. See News and Observer Pub. Co. v. Poole (N.C. 1992), 412 S.E.2d 7, 15; American Soc. for the Prevention of Cruelty to Animals v. Board of Trustees (N.Y. 1992), 591 N.E.2d 1169, 1170; Carroll County Educ. Ass’n v. Board of Educ. (Md. 1982), 448 A.2d 345, 347.
Moreover, in a factually similar case, the Michigan Supreme Court determined that a selection committee and its advisory subcommittees organized to select a university president were “public bodies” under Michigan’s Open Meetings Act. Booth Newspapers v. University of Michigan (Mich. 1993), 507 N.W.2d 422, 429. The Michigan definition of “public body” focused on the entity’s ability to exercise governmental or proprietary authority. The Michigan Supreme Court held that the selection of a public university president constituted the exercise of governmental authority regardless of whether the authority was exercised by the nominating committee, the board or even the advisory subcommittees. Booth, 507 N.W.2d at 429. The same reasoning applies to the selection of the Commissioner in Montana. The “public or governmental” nature of the Committee’s purpose is obvious. Further, the Committee is created and organized by state statute to perform its governmental function.
Having determined that the Committee is subject to the requirements of the open meeting statutes, we focus on whether its November 20,1992, meeting violated those statutes. Section 2-3-202, MCA, defines a “meeting” as a convening of a quorum of the constituent membership of an entity described in § 2-3-203, MCA, to hear, discuss or act upon a matter over which that entity has supervision, control, jurisdiction or advisory power. On November 20,1992, three of the four members met to discuss the candidates and the transmission of the list of names to the governor. Thus, by definition, a “meeting” was held. See Board of Trustees, 606 P.2d at 1073.
Additionally, Montana law requires that public notice be given of meetings subject to the requirements of the open meeting statutes. Board of Trustees, 606 P.2d at 1073. Without public notice, an “open” meeting is open in theory only, not in practice. Board of Trustees, 606 P.2d at 1073. In this case, the parties stipulated that no public notice was given of the Committee’s November 20, 1992, meeting. We conclude, therefore, that the Committee violated § 2-3-203, MCA, of the open meeting statutes.
Having concluded that the open meeting statutes apply and were violated by the Committee, we turn to the effect of that violation on Argenbright’s appointment. Common Cause contends that the Committee’s decision to submit the names to the governor should be voided pursuant to § 2-3-213, MCA, which allows a court to void a decision made in violation of § 2-3-203, MCA. Based on the nexus between the Committee’s recommendations and the governor’s appointment of Argenbright, Common Cause argues that Argenbright’s appointment is tainted by the Committee’s statutory violation. Thus, Common Cause contends that the entire appointment process should be voided and Argenbright removed from office, relying on Board of Trustees.
The Committee argues, on the other hand, that voiding the Committee’s decision and submission of its list to the governor would not affect the governor’s appointment of Argenbright. It argues that the governor’s appointment is statutorily independent of the Committee’s recommendations, as indicated by the language of § 13-37-102(1), MCA. Because no legal nexus exists between the Committee’s recommendations and the governor’s appointment, the Committee asserts that any flaw in its recommendation does not require Argenbright’s appointment to be voided.
Section 2-3-213, MCA, provides that any decision made in violation of § 2-3-203, MCA, may be declared void by a district court. We have concluded that the Committee’s November 20,1992, meeting violated § 2-3-203, MCA. However, in this unique situation, we conclude that the District Court did not abuse its discretion in refusing to void the entire appointment and confirmation process based on the Committee’s violation of the open meeting laws.
In Board of Trustees, the county commissioners held an unannounced meeting at which a controversial subdivision was approved. We determined that the failure to give notice of the meeting had the effect of invalidating the decision made there; we concluded that the district court clearly abused its discretion under § 2-3-213, MCA, in deciding to “look past form to the substance” and in refusing to void the commissioners’ approval of the subdivision. Board of Trustees, 606 P.2d at 1074.
Unlike the commissioners’ approval of the subdivision in Board of Trustees, the Committee’s submission of a slate of names to the governor is not directly linked to the eventual action taken — Argenbright’s appointment by the governor and senate confirmation. The commissioners’ decision in Board of Trustees was the only official act required for approval of the subdivision. Here, while required by statute, the Committee’s decision is not in any way, or to any extent, binding on the governor’s ultimate choice of a candidate to fill the office of Commissioner.
Section 13-37-102, MCA, states:
There is a commissioner of political practices who is appointed by the governor, subject to confirmation by a majority of the senate. A four member selection committee ... shall submit to the governor a list of not less than two or more than five names of individuals for his consideration. ...
The language “for his consideration” illustrates the advisory role of the Committee. Under § 13-37-102, MCA, the governor is free is disregard entirely the list of names submitted by the Committee. In direct contrast, §§ 3-1-1011 and 2-15-1813(2), MCA, (relating to appointment of Montana’s judges and the coordinator of Indian affairs, respectively) both require the governor to choose an appointee from the list of names submitted by an advisory committee. If the legislature had desired a similar result in § 13-37-102, MCA, similar mandatory language would have been added.
Therefore, although the Committee violated the open meeting statutes by holding its November 20, 1992, meeting without public notice, the only “decision” that could be voided under § 2-3-213, MCA, is the Committee’s choice of the names to submit to the governor. No statutory violations occurred in the governor’s appointment of Argenbright or the Senate’s confirmation of that appointment. As explained, § 13-37-102(1), MCA, establishes that the two critical steps in the selection of the Commissioner are “the appointment and confirmation” of the Commissioner. Those steps, properly performed, are sufficient to vest Argenbright with title to the office of Commissioner.
In effect, Common Cause is challenging Argenbright’s right to hold the position of Commissioner. Three statutory provisions provide the exclusive means by which Argenbright can be removed from his office. First, under the quo warranto provisions found at §§ 27-28-101, et seq., MCA, either the attorney general or an individual claiming to be entitled to the public office can commence a quo warranto proceeding against a person unlawfully holding public office. Sections 27-28-103 and -301, MCA. Second, § 13-37-102(2), MCA, provides for removal of the Commissioner prior to the expiration of the term of office for incompetence, malfeasance, or neglect of duty. Finally, the Commissioner could be removed from office by impeachment or if prosecuted for official misconduct. Section 37-13-105, MCA. None of those procedures is involved in this case.
The District Court did not find a statutory or constitutional violation in the Committee’s November 20, 1992, meeting, and we have determined that the meeting did in fact violate § 2-3-203, MCA. Thus, the District Court erred in this regard. However, because the Com mittee’s submission of the names is statutorily independent of the governor’s choice and not in any way binding on that choice, we also conclude that the Committee’s statutory violation does not require that the entire appointment process be voided. Thus, in this case, the District Court’s ultimate refusal to void Argenbright’s appointment pursuant to § 2-3-213, MCA, was not an abuse of discretion.
Notwithstanding the unique circumstances of this case, open meetings violations remain of utmost concern to this Court. Nothing in this opinion should be interpreted to suggest that violations of open meeting laws by any entity subject to those laws will not result in voiding decisions so reached. We will not hesitate to affirm a district court’s determination to void such decisions or reverse a court’s refusal to do so.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, NELSON and WEBER concur.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
Petitioner Yother appeals from the order of the District Court, Fifth Judicial District, Jefferson County, dated March 27, 1978, denying a petition for post-conviction relief. This petition is based upon proceedings in justice court, a hearing in District Court on an application for writ of habeas corpus, and upon the arraignment and sentencing of petitioner in District Court for first degree assault.
In the early morning of March 9, 1973, petitioner, who was on parole or probation at the time, appeared at the Clancy Bar, Clancy, Montana, and allegedly assaulted patrons of that tavern. Petitioner was arrested by a deputy sheriff responding to a call about the disturbance at the Clancy Bar. Later in the day petitioner was charged by complaint of the arresting officer in the justice court for Boulder Township, Jefferson County, Montana, with disturbing the peace on March 9, 1973, at Clancy, Montana, “by tumultuous and offensive conduct; and ... by loud, unusual noise, cursing or swearing, fighting and threatening to fight.”
The petitioner allegedly pled guilty to the charge of disturbing the peace, and was allegedly sentenced to 100 days in jail or a fine of $1,000 by Justice of the Peace Edwin E. Kirtley. These allegations are based upon the notation in Justice of the Peace Kirtley’s handwriting on the complaint that petitioner “pled guilty — bail set $1,000 or 100 days in jail case sent to district court — case bound over to district court April 12, 1973” Unfortunately no docket entry was made regarding the disposition of this action. Petitioner began serving the jail sentence. Petitioner was thereafter charged by information on March 16, 1973 with assault in the first and second degrees and with resisting officers. (The action in this cause was commenced prior to the effective date of the 1973 Criminal Code.) The first degree assault charges were based upon complaints filed by persons involved in the altercation at the Clancy Bar.
A psychiatric examination was ordered for petitioner on March 22, 1973. Petitioner filed a handwritten letter on March 22, 1973,-which the District Court treated as an application for a writ of habeas corpus. The writ was issued and a hearing on the writ was continued until after the examination was completed.
On April 12, 1973, the hearing on the writ was held before the court. Justice of the Peace Kirtley testified petitioner did not plead guilty and no sentence was imposed, rather petitioner was merely held pursuant to a warrant issued by a parole probation officer. Deputy sheriff W. J. Gwaltney (the arresting officer) testified that petitioner was brought before the Justice of the Peace on the complaint of disturbing the peace and not because of any request by the parole/probation officer. Deputy Gwaltney further testified petitioner was arraigned on the charge, pled guilty and was sentenced to 100 days in jail. The deputy also testified petitioner expressed astonishment at the length of the sentence. The parole/probation officer testified no warrant was issued for petitioner for any possible parole/probation violation.
Upon conclusion of the hearing, the District Court quashed the application for a writ of habeas corpus and denied relief. The court also determined the proceedings in justice court had “apparently never been disposed of” and indicated petitioner could be arraigned on the charges contained in the information.
Petitioner was arraigned at 2:00 p.m. on April 12, 1973 and at that time acknowledged receipt of the information filed against him and that he read it. The court then advised petitioner of the maximum penalties for the charges made against him, of petitioner’s right to remain silent, and of his right to counsel. Petitioner pled not guilty to the charges. Later that afternoon, after bargaining by the county attorney in which he indicated he would seek sentencing for petitioner under the recidivist statute, the petitioner through his attorney changed his plea to guilty as to first degree assault. The court accepted the plea and dismissed the remaining charges. Petitioner was then sentenced to ten years in the Montana State Prison. The record does not indicate whether the court at the arraignment or sentencing ascertained the petitioner’s true name, advised him of his right to bail (though bond was filed) or whether the court inquired as to the voluntariness of the guilty plea and the understanding the petitioner had of the charges as required by statute. Section 46-12-201, -202 MCA (formerly section 95-1606, R.C.M.1947).
The petition for post-conviction relief was filed in District Court on August 19, 1977, and.a hearing was conducted on February 1, 1978. The petitioner offered two grounds for granting the relief he requested — first, that he had been placed twice in jeopardy by his prosecution on the assault charges and second, that his guilty plea had not been completely voluntary and the District Court failed to ascertain the circumstances surrounding the plea as it was required to do. In the hearing, the court granted a motion requesting it to take judicial notice of the records in the prior proceedings. The court had before it as evidence the original complaint filed in the justice court as well as a copy of the Board of Pardons violation report indicating petitioner had pled guilty and been sentenced for disturbing the peace.
Petitioner testified at this hearing that he felt he had pled guilty in justice court and had been sentenced. As to the entry of the guilty plea in District Court, petitioner testified he had been unhappy with his representation by counsel and had tried to complain but to no avail. Petitioner further testified he felt his attorney was not representing him and he did not want to be sentenced as a recidivist as the county attorney indicated he would ask the court to do.
The District Court denied the relief requested in the petition specifically finding the petitioner’s guilty plea was knowingly and voluntarily given and that no undue influence was exerted or threats made with respect to the guilty plea. The court, however, made no explicit determination with respect to petitioner’s double jeopardy claim.
Three issues confront this Court in this matter. First, does the record of proceedings in the District Court indicate the petitioner had pleaded guilty to an offense in justice court and was sentenced for that offense? Second, if the petitioner did plead guilty to a charge in justice court, did the charge arise out of the same transaction as the District Court charges in such a way as to bar the District Court proceedings as being violative of the constitutional protection against double jeopardy? Finally, did the District Court considering the petition for post-conviction relief correctly conclude petitioner had been properly informed of his constitutional rights and the voluntariness of his plea firmly established in light of the record before his guilty plea was accepted?
The scope of our review of a denial of post-conviction relief is whether substantial evidence supports the findings and conclusions of the District Court. In Matter of Jones (1978), 176 Mont. 412, 578 P.2d 1150, 1152. The burden the petitioner has when requesting such relief is to show by a preponderance of evidence that the facts justify the relief. 578 P.2d at 1152; see, Young v. Cupp (1971), 8 Or.App. 41, 491 P.2d 1201.
In the present case, the District Court hearing the petition concluded petitioner had failed to meet this burden and therefore denied the post-conviction relief requested. We disagree and conclude the petitioner had established by a preponderance of the evidence his claim of double jeopardy and his claim that the District Court did not affirmatively ascertain the voluntariness of his guilty plea.
Our review of the record in this matter reveals the only evidence indicating the petitioner had not pled guilty to, and thus been convicted of, disturbing the peace is the testimony of Justice of the Peace Kirtley. Arrayed against this testimony is the testimony of Deputy Gwaltney who unequivocally stated petitioner, “plead guilty and Judge Kirtley sentenced him to a hundred days;” the testimony of the parole/probation officer that no warrant for petitioner had been issued by his office contrary to the claim of the justice of the peace; and the documents admitted in evidence by the District Court, including a handwritten notation by Judge Kirtley, indicating petitioner had been convicted of and received a sentence for disturbing the peace. We therefore find the petitioner did present a preponderance of evidence showing he had been convicted of and sentenced for disturbing the peace, and the evidence was not so substantial as to warrant a determination otherwise by the District Court.
Turning to the second issue in this cause we now must decide if such conviction would prevent for double jeopardy reasons a subsequent prosecution for first degree assault. We note initially petitioner’s plea of guilty to the assault charge is not a bar to the claim of double jeopardy. Menna v. New York (1975), 423 U.S. 61, 62, 96 S.Ct. 241, 46 L.Ed.2d 195.
The United States Supreme Court has decided that a subsequent prosecution is barred by a prior conviction if the subsequent prosecution is based upon the same acts as was the prior conviction, if the subsequent prosecution is for an offense of which the offense in the prior conviction is a lesser included offense, and if the subsequent prosecution is in a court which is part of the same sovereign as the court involved in the prior conviction. Waller v. Florida (1970), 397 U.S. 387, 390, 394-395, 90 S.Ct. 1184, 25 L.Ed.2d 435; see also United States v. Mechanic (9th Cir. 1971), 454 F.2d 849, 855; Turley v. Wyrick (E.D.Mo.1976), 415 F.Supp. 87, 88; State v. Rook (1973), 14 Or.App. 211, 511 P.2d 1245, 1246. Here the disturbing the peace charge and the first degree assault charge each were based upon the acts of petitioner while in the Clancy Bar, Clancy, Montana. We have already concluded petitioner was convicted of the charge of disturbing the peace based upon those acts.
According to the statutes under which the prosecutions occurred, to establish the offense of disturbing the peace it was necessary to prove petitioner (1) willfully and maliciously (2) disturbed the peace of a neighborhood or person (3) by tumultuous or offensive conduct or (4) by threatening to fight or fighting. Section 94-3560, R.C.M. 1947. To establish first degree assault, section 94-601, R.C.M.1947, the prosecution had to prove petitioner (1) with the intent to commit a felony upon the person or property of the one assaulted (2) assaults another (3) with a deadly weapon. Because the offense of disturbing the peace essentially required no proof beyond that required for conviction of the first degree assault charge it was a lesser included offense of the greater offense of assault. Brown v. Ohio (1977), 432 U.S. 161, 168, 97 S.Ct. 2221, 53 L.Ed.2d 187; State v. Lagerquist (1968), 152 Mont. 21, 445 P.2d 910, 916.
Article VIII, Section 1 of 1889 Montana Constitution states: “The judicial power of the state shall be vested in ... a supreme court, district courts, justices of the peace, and such other inferior courts as the legislative assembly may establish in any incorporated city or town.” This provision demonstrates the judicial power to try petitioner on the charge in justice court springs from the same organic law that created the District Court in which petitioner was convicted of a felony. The two courts involved in this matter are therefore arms of the same sovereign. Waller v. Florida, 397 U.S. at 393-394, 90 S.Ct. 1184.
We conclude this cause falls within the ambit of the Waller decision and the petitioner here was placed twice in jeopardy by the subsequent prosecution for first degree assault. Moreover, the Supreme Court in Brown has held that a prior conviction for an offense requiring no proof beyond that necessary for conviction of a greater offense bars the prosecution for that greater offense. 432 U.S. at 168-169, 97 S.Ct. 2221.
Although our determination of the first two issues presented in this appeal is dispositive, we feel obliged to comment on the remaining issue, that of the voluntariness of the guilty plea.
Following its quashing petitioner’s writ of habeas corpus, the District Court arraigned petitioner on the information filed against him. The court ascertained petitioner had read the information and then informed the petitioner of the charges filed against him and the potential penalties involved. The court further informed the petitioner of his right to counsel and his right to remain silent. The petitioner indicated he would like to plead and then entered a not guilty plea. During the next few hours petitioner spoke with his attorney and with the county attorney, the latter apparently informing petitioner that if the case went to trial, increased penalty under the recidivist statute would be sought. After this petitioner returned to court and through his counsel withdrew his earlier plea, personally indicated he was ready to. enter a plea of guilty to first degree assault, and then through counsel entered the guilty plea to first degree assault. The remaining charges in the information were dismissed and the court passed sentence. The court made no inquiry as to the circumstances surrounding the change of plea, nor did it inform petitioner of his right to trial by jury and his right to confront witnesses. Petitioner argues the record before the District Court mandated a thorough inquiry as to voluntariness and understanding and failure to do so should result in the granting of the relief he seeks.
The standard by which the validity of a guilty plea is judged is whether the plea represents a voluntary and intelligent choice among the alternative courses of action open to the defendant as affirmatively disclosed by the record. North Carolina v. Alford (1970), 400 U.S. 25, 31, 91 S.Ct. 160, 27 L.Ed.2d 162; Brady v. United States (1970), 397 U.S. 742, 747, 90 S.Ct. 1463, 25 L.Ed.2d 747; Boykin v. Alabama (1969), 395 U.S. 238, 243-244, 89 S.Ct. 1709, 23 L.Ed.2d 274; Wilkins v. Erickson (9th Cir. 1974), 505 F.2d 761, 763. While it is clear that courts are not required to articulate specific rights when accepting a guilty plea, Wilkins, supra; State v. Griffin (1975), 167 Mont. 11, 535 P.2d 498, 503, an “in depth examination by the court is desirable and mandatory in cases where the record requires it.” Griffin, 535 P.2d at 503.
The record in this cause discloses the District Court which accepted petitioner’s guilty plea made no inquiries other than if .petitioner was ready to enter a- plea. The record also indicates “bargaining” had taken place between petitioner, his counsel and the county attorney. We would conclude upon this record that an in depth examination of the petitioner by the court accepting the plea was desirable and mandatory. For the future assistance of District Courts considering a guilty plea, we recommend reference to State v. Lewis (1978), 177 Mont. 474, 582 P.2d 346, and the scope of inquiry there employed by the District Court. See also, State v. Huttinger (1979), . . . Mont. . . ., 595 P.2d 363, 36 St.Rep. 945, 951-953.
Having concluded the petitioner demonstrated by a preponderance of the evidence in his petition for post-conviction relief that he had been convicted of disturbing the peace and thus was placed twice in jeopardy by the subsequent prosecution for assault, we reverse the denial of the petition. The matter is remanded to the District Court with instructions to allow petitioner to withdraw his guilty plea to the first degree assault charges and thereafter to dismiss that charge. The District Court is further instructed to dismiss petitioner from any custody by the State, or supervision by the Bureau of Probation and Parole, that is directly attributable to the conviction for first degree assault.
Judgment reversed and remanded with instructions.
MR. JUSTICES DALY, HARRISON and SHEA concur.
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JUSTICE HUNT
delivered the Opinion of the Court.
Appellant Linda B. Meeks (Linda) appeals the order of the Eighth Judicial District Court, Cascade County, which dissolved her marriage to Respondent Alan R. Meeks (Alan) and divided the marital property between the two parties.
Affirmed in part, reversed in part and remanded.
ISSUES
Linda alleged twenty-five separate errors in the District Court’s division of the marital estate. The following restated issues are dispositive of this appeal:
1. Did the District Court err in granting Alan’s motion for partial summary judgment, which excluded from the marital estate Alan’s interest in a testamentary trust established by his father?
2. Did the District Court err in excluding from the marital estate the value of Alan’s accrued vacation and sick leave?
3. Did the District Court err in adopting the farm appraisal offered by Alan’s expert?
4. Did the District Court abuse its discretion by refusing to allow the record to remain open for the testimony of a rebuttal witness?
5. Did the District Court err by not including in the marital estate an additional thrift plan contribution made by Alan between September 30, 1994, and November 17, 1994, the date of trial?
6. Did the District Court err in ordering that the parties’ legal fees and costs be paid out of the marital estate before division?
7. Did the District Court err in allocating the Meeks’ farm to Alan, rather than dividing the farm between the parties?
8. Was the District Court’s distribution of the marital property in this case clearly erroneous?
FACTS
Linda and Alan were married in 1968 and have one adult son. For the past 22 years, Alan has worked as a farm appraiser, while Linda has worked as a legal secretary, bookkeeper, tax preparer, and in several banks. Over the course of their 26-year marriage, the parties generated a marital estate worth approximately $1,000,000.
In 1994, Linda filed a petition to dissolve the marriage. Alan moved for partial summary judgment, asking the District Court to exclude from the marital estate his interest in a testamentary trust established by his father. This motion was granted.
After a further hearing in late 1994, the District Court issued its findings of fact, conclusions of law, and order dissolving the marriage and dividing the marital estate. Linda appealed the District Court’s grant of summary judgment on the issue of the testamentary trust, as well as its division of the marital estate. Other facts will be provided as necessary.
STANDARD OF REVIEW
The distribution of marital property in a dissolution action is governed by § 40-4-202, MCA, which provides in part:
In a proceeding for dissolution of a marriage, legal separation, or division of property following a decree of dissolution ... the court [shall], without regard to marital misconduct, finally equitably apportion between the parties the property and assets belonging to either or both, however and whenever acquired and whether the title thereto is in the name of husband or wife or both. ...
Section 40-4-202(1), MCA.
A district court’s findings of fact regarding the division of marital property will be upheld unless the findings on which the division are based are clearly erroneous. In re Marriage of DeWitt (1995), 273 Mont. 513, _, 905 P.2d 1084, 1087. If a district court’s judgment is supported by substantial credible evidence, it will not be disturbed absent an abuse of discretion. In re Marriage of Griffin (1996), [275 Mont. 37], 909 P.2d 707, 708 (citing In re Marriage of Maedje (1994), 263 Mont. 262, 868 P.2d 580).
The test for abuse of discretion is “whether the trial court acted arbitrarily without employment of conscientious judgment or exceeded the bounds of reason resulting in substantial injustice.” In re Marriage of Tonne (1987), 226 Mont. 1, 3, 733 P.2d 1280, 1282 (quoting In re Marriage of Rolfe (1985), 216 Mont. 39, 45, 699 P.2d 79, 83). Moreover,
A District Court has broad discretion in determining the value of property in a dissolution. Its valuation can be premised on expert testimony, lay testimony, documentary evidence, or any combination thereof. The court is free to adopt any reasonable valuation of marital property which is supported by the record. As long as the valuation of property in a dissolution is reasonable in light of the evidence submitted, we will not disturb the finding on appeal.
In re Marriage of Robinson (1994), 269 Mont. 293, 296, 888 P.2d 895, 897 (citations omitted).
While the above is the general standard of review in marital estate division cases, other standards of review will be set out as is necessary to address the issues raised.
DISCUSSION
1. Did the District Court err in granting Alan’s motion for partial summary judgment, which excluded from the marital estate Alan’s interest in a testamentary trust established by his father?
Alan’s father William A. Meeks, Sr. died in 1986, leaving a will which established a testamentary trust for the benefit of his wife (Alan’s mother), and which named Alan and his brother as co-trustees. According to the terms of the will, the trustees have the power to invade the corpus only “if there are no other sources of funds reasonably available” for the maintenance of Alan’s mother, and then only to the extent necessary “for her care, maintenance and support.” Upon the death of Alan’s mother, the trust will terminate and will be distributed in equal shares to Alan, his brother, and his sister.
The will also contains a spendthrift clause regarding the trust, which provides:
No title in the trust or trusts created in and by this will, or in the income therefrom, shall vest in any beneficiary, and neither the principal nor the income of any such trust estate shall be liable for the debts of any beneficiary, and no beneficiary shall have any power to sell, assign, transfer, encumber or in any other manner to anticipate or dispose of his or her interest in any such trust estate created by the terms of this will or the income produced thereby by the Co-Trustees to said beneficiary.
Based on the foregoing language, Alan moved for partial summary judgment, claiming that he has only a contingent remainder in the trust, and his interest therefore should not be considered part of the marital estate. The District Court agreed and granted the motion, excluding Alan’s remainder interest in the trust from the marital estate.
Summary judgment is proper if no genuine issues of material fact exist and the moving party is entitled to summary judgment as a matter of law. Rule 56(c), M.R.Civ.P.; Vincelette v. Metropolitan Life Ins. Co. (1995), 273 Mont. 408, 903 P.2d 1374. In reviewing a grant of summary judgment, this Court’s standard of review is identical to that of the trial court and, in determining whether summary judgment was appropriate, we will use the same criteria employed by the trial court. Vincelette, 903 P.2d at 1376 (citations omitted).
Linda contends the grant of partial summary judgment in this case was in error. While she does not argue that a genuine issue of material fact exists, she contends the District Court erred as a matter of law in concluding that Aan’s remainder in the trust is contingent. Linda maintains that Aan has a vested remainder in the testamentary trust which should be considered part of the marital estate and divided accordingly.
A contingent remainder is a right to property which may or may not vest in possession at some future date. Generally, a remainder will be considered contingent if the recipient is unknown or if the interest will only vest upon the occurrence of an event which is not certain to happen. A remainder will not be considered contingent if it can fairly be construed to be vested. 23 Thompson on Real Property, Thomas Edition (David A. Thomas, ed., 1994), 314 (citations omitted).
[A] vested remainder is one which is limited to an ascertained person in being, whose right to the estate is fixed and certain, and does not depend on the happening of any future event, but whose enjoyment and possession is postponed to some future time.... [A] vested remainder is not rendered contingent by the fact that it may never vest in possession.
23 Thompson on Real Property, 325-26 (citations omitted).
Aan is an ascertainable person in being whose right to a share of the remainder of the testamentary trust is not dependent upon the occurrence of some future event. Rather, he is sure to inherit so long as two given events do not occur. Aan will lose his remainder interest if he dies before his mother, or if the entire trust corpus is used for his mother’s maintenance and care before her death. Only these events will serve to divest him of his remainder interest.
It therefore follows that, absent additional conditions, Aan’s interest in the testamentary trust would be classified as a vested remainder, subject to divestment. Such classifications, however, are not necessarily controlling regarding how a remainder interest should be treated. When such interests are created by a will, the testator’s intent also must be considered.
When construing a will, the cardinal rule is that the intent of the testator must be effected if it is not contrary to the law or to public policy. Matter of Estate of Bennett (Colo.App. 1989), 789 P.2d 446. See also Allen v. Shea (Idaho 1983), 665 P.2d 1041; In re Estate of Larsen (Utah 1982), 649 P.2d 31; In re Question Submitted by U.S. Ct. of App., Tenth Cir. (Colo. 1976), 553 P.2d 382; McGinley v. McGinley (Pa.Super. 1989), 565 A.2d 1220. The testator’s intent, if clearly articulated, can preserve as contingent a remainder which otherwise would be deemed to have vested. McGinley, 565 A.2d at 1225.
[W]hether a remainder is vested or contingent depends entirely upon the testator’s intention, and where the testator has indicated with reasonable certainty the intention that it shall not vest until a particular time, it will not vest until that time arrives, and then only in those who are in esse and capable of taking at that time.
23 Thompson on Real Property, 341 (citations omitted).
Appellant cites several cases in support of her position that an interest in a testamentary trust is vested and should be included in the marital estate. In re Marriage of Kis (1982), 196 Mont. 296, 639 P.2d 1151; In re Marriage of Buxbaum (1984), 214 Mont. 1, 692 P.2d 411; In re Marriage of Hill (1982), 197 Mont. 451, 643 P.2d 582; Rolfe, 699 P.2d 79. These cases are easily distinguished, however.
Rolfe and Kis address the valuation of a party’s interest in a pension fund, not a testamentary devise. Accordingly, there is no “testator” in these cases whose intent might contravene the general classifications. While Hill and Buxbaum deal with testamentary devises, in neither case was the intent of the testator inconsistent with a finding that the interest in question was vested and properly included in the marital estate.
In the case at bar, Alan’s father by his will declared that “[n]o title in the trust... or in the income therefrom shall vest... prior to actual distribution.” In so doing, he unequivocally expressed his intent that his children’s interests in the trust remain contingent until such time as the corpus of the trust is in fact distributed. In Montana,
a decree of distribution is conclusive upon the rights of devisees under a will, subject only to be reversed, set aside or modified on appeal. A decree of distribution has the same force and effect as does a final judgment.
Hill, 643 P.2d at 586.
Since Alan’s father’s will provided that Alan’s interest in the testamentary trust remain contingent until actual distribution, the District Court did not err in refusing to classify the interest in a manner contrary to the testator’s express intent. Alan has a contingent remainder in his family testamentary trust, which was properly excluded from the marital estate. Therefore, the District Court did not err in granting Alan’s motion for partial summary judgment.
2. Did the District Court err in excluding from the marital estate the value of Alan’s accrued vacation and sick leave?
In the 22 years Alan has worked at his present job, he has accrued over 1,900 hours of sick leave and vacation. Upon his retirement, these hours will be added to his term of service for purposes of calculating his pension. Alan may use the leave as necessary before retirement, but it cannot be cashed out at any time. Its only value after retirement is to extend his term of service and consequently increase his pension.
The District Court provided that Alan’s pension would be divided according to the “time rule formula,” which is set out in In re Marriage of Rolfe (1988), 234 Mont. 294, 298, 766 P.2d 223, 226. See also In re Marriage of Truax (1995), 271 Mont. 122, 894 P.2d 936. The time rule formula provides for the division of a pension as follows:
Years of servide during marriage monthly
_ x benefit x 1/2%
Total years of service (after taxes)
Linda alleges that the time rule formula in this case “should be amended to include not only the number of months [actually] worked by Alan but also the number of accrued hours of sick leave.” Because, as we have noted above, any unused sick leave will be added to Alan’s total months of service upon retirement, that amount will be taken into account in computing the pension in which Linda will share.
Any sick leave or vacation time which remains unused at Alan’s retirement is to be added to his total term of service when his pension is computed. Moreover, any sick leave or vacation which Alan uses between the time of the divorce and his retirement should be debited against vacation or sick leave earned after the divorce. This will prevent unnecessary “drawing down” of the vacation and sick leave which was earned during the marriage and in which Linda has a legitimate, if contingent, interest.
However, adding the vacation and sick leave only to the denominator of the equation would serve to lessen Linda’s proportionate share by reducing the fraction. For this reason, the sick leave and vacation which accrued during the marriage should also be added to the numerator of the fraction so that the fraction remains proportionately the same. Accordingly, the fraction in this case should consist of the years worked during the marriage plus the vacation and sick leave accrued during the marriage as the numerator, and the total years worked plus the total vacation and sick leave accrued as the denominator.
The District Court, in specifying that Alan’s leave is to be used in computing his pension, considered it to be part of the marital estate, not “the same as” a pension but rather as part o^the pension. Linda fails to raise any cogent argument that the inclusion of the leave in the pension itself is erroneous; instead, she alleges only that the manner of inclusion is unclear, and we have rectified that problem. We therefore do not address the issue of whether vacation and sick leave may, under certain circumstances, be considered a distinct marital asset. That question is beyond the scope of this appeal.
Since Linda will receive her proportionate share of the benefit of Alan’s leave, and since Alan cannot convert his sick leave or vacation to cash at any time, we find no abuse of discretion in the District Court’s refusal to classify Alan’s sick leave and vacation as a separate marital asset.
3. Did the District Court err in adopting the farm appraisal of Alan’s expert?
In order to assist the District Court in the valuation of the Meeks’ farm, Alan presented testimony from an appraiser, John E. Wicks. Linda too called upon an appraiser, Dave Anderson, who also testified to the value of the farm. The District Court rejected Anderson’s appraisal but adopted Wicks’, using Wicks’ valuation when allocating the farm.
Linda alleges several errors in Wicks’ appraisal, including his evaluation of bushel capacity, his valuation of a land option, and his valuation of the farm itself. She also alleges that the District Court ignored assumptions underlying Wicks’ appraisal while adopting contrary assumptions underlying Anderson’s appraisal “out of context.” In light of these alleged errors, Linda asserts that the District Court erred in accepting and using Wicks’ appraisal in its findings of fact.
This Court will not substitute its judgment for that of the trial court regarding the credibility of witnesses or the weight to be given to their testimony. In re the Seizure of $23,691 in U.S. Currency (1995), 273 Mont. 474, _, 905 P.2d 148, 155 (citing Matter of B.T.B. (1992), 254 Mont. 449, 840 P.2d 558). Moreover,
the determination of property valuation is a factual issue which is within the province of the trial court to decide. When reviewing findings of fact, this Court is precluded from substituting its judgment for that of the trier of fact, and cannot set aside the findings of a court sitting without a jury unless the findings are ‘clearly erroneous.’ Rule 52(a), M.R.Civ.P.
Trustees of Washington-Idaho-Montana Carpenters-Employers Retirement Trust Fund v. Galleria Partnership (1991), 250 Mont. 175, 184, 819 P.2d 158, 163.
Linda quarrels with the methodology employed by Wicks in his evaluation as well as with the conclusions he reached regarding the value of the farm. But the District Court set out specific reasons why Wicks’ appraisal was adopted and Anderson’s rejected, including Wicks’ expertise and thoroughness. Every argument Linda raises and every flaw she alleges was also heard by the District Court, which nevertheless found Wicks’ testimony to be more persuasive than Anderson’s. Linda makes no new argument on appeal which might persuade this Court that the District Court’s adoption of the appraisal was erroneous. Because Linda has failed to show that the District Court’s adoption of Wicks’ appraisal was clearly erroneous, the findings of fact which are based upon the Wicks’ appraisal are affirmed.
4. Did the District Court abuse its discretion by refusing to allow the record to remain open for the testimony of a rebuttal witness?
In arguing for a higher valuation for the farm, Linda sought to compare the appraisals given by Anderson and Wicks to the price paid by a neighbor who had purchased a “comparable” farm. Wicks testified, however, that the neighbor’s farm was not comparable because it included a pond and land for grazing as well as cropland — advantages the Meeks’ farm did not have. Therefore, Wicks asserted, this farm naturally would have a higher value and could not be compared to the Meeks’ farm.
To rebut Wicks’ testimony, Linda sought to present testimony from the owner of the neighboring farm. Linda claimed the owner would have testified that he bought his farm without consideration of the pond or the grazing land, and that, in his opinion, the farm still retained its higher value even if those assets were factored out. This owner, however, was not present in court and had not been served with a subpoena to appear; Linda therefore moved the District Court to hold the record open until the neighbor could testify.
The District Court denied her motion, finding that the witness could have been subpoenaed earlier if Linda wanted to assure his presence. Linda, however, claimed that she had not secured the neighbor’s appearance because she had not anticipated Wicks’ testimony and was “surprised” by his declaration that the two farms were not comparable. Therefore, Linda asserted that she should have been afforded the opportunity to hold the record open until the neighbor could testify.
The standard of review of evidentiary rulings is whether the district court abused its discretion. A district court has broad discretion to determine if evidence will be admitted and, absent an abuse of discretion, this Court will not overturn a district court’s determination. Seizure of $23,691 in U.S. Currency, 905 P.2d at 153.
Even if Linda was in fact surprised by Wicks’ refusal to compare the Meeks’ farm to the neighbor’s farm, we fail to see the probative value of the neighbor’s testimony. Wicks was hired to do a professional appraisal of the Meeks’ farm; in so doing, he looked at several comparable sales. The neighbor, on the other hand, is a farmer who even Linda admits could only have testified to his own willingness to pay a high price for his own farm, even if, hypothetically, it did not have some of the advantages which it does in fact have.
This opinion testimony, even if allowable, could not prove that Wicks was incorrect in his declaration that the farms are not comparable for appraisal purposes. The testimony of an expert, whose opinion is based on fact, could not be adequately rebutted by the testimony of a layman whose opinion is based on a hypothetical scenario which does not exist. The District Court did not abuse its discretion by refusing to allow the record to remain open for the addition of testimony which could not substantively assist it in its fact-finding task.
5. Did the District Court err by not including in the marital estate an additional thrift plan contribution made by Alan between September 30, 1994, and November 17, 1994, the date of trial?
In valuing Alan’s thrift plan, the District Court used the valuation provided in the plan’s last quarterly statement, dated September 30, 1994. Linda alleges that the District Court should have valued the thrift plan as of the time of trial, six weeks later, and that its failure to do so was reversible error.
Generally, marital assets should be valued at or near the time of the dissolution hearing, unless the district court, at its discretion, decides a different date is necessary to achieve an equitable result. In re Marriage of Lopez (1992), 255 Mont. 238, 244, 841 P.2d 1122, 1125. Apparently, Linda wants this Court to declare that, in this case, six weeks previously is not “near” enough. We decline to do so. The District Court used the most recent quarterly report available in valuing this asset, giving it a value commensurate with the latest documented evidence. Linda’s allegation of error is without merit.
6. Did the District Court err in ordering that the parties’ legal fees and costs be paid out of the marital estate before division?
The District Court found the amount of attorney fees and costs incurred by the parties to be “roughly equal.” It therefore ordered that the fees and costs of the divorce should be paid out of the marital estate before it was divided. Linda alleged that such an arrangement constituted an abuse of the District Court’s discretion because it did not comply with the applicable statute governing the awarding of attorney fees.
Section 40-4-110, MCA, provides in part:
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 of the other party in maintaining or defending any proceeding under chapters 1 and 4 of this title and for attorney’s fees, including sums for legal services rendered and costs incurred prior to the commencement of the proceeding or after entry of judgment.
“An award of attorney fees under this statute must be based on necessity, must be reasonable, and must be based on competent evidence.” In re Marriage of Barnard (1994), 264 Mont. 103, 109, 870 P.2d 91, 95 (quoting In re Marriage of Zander (1993), 262 Mont. 215, 227, 864 P.2d 1225, 1233).
Alan argues that the District Court’s order that the attorney fees and costs be paid from the marital estate before division means that such fees were not “awarded” to one party over another, but, rather, that the fees are merely a marital “liability” which is properly charged to the estate. He notes that such an arrangement has been approved by this Court in In re Marriage of Cole (1986), 224 Mont. 207, 729 P.2d 1276.
In Cole, however, we recognized that an arrangement where all fees are lumped together and the debt then equally divided is to the benefit of the party with the most expenses, and translates into the other party being charged with a disproportionate share of the fees. Such an arrangement amounts to one party paying part of the other party’s costs. Therefore, the statutory requirements of § 40-4-110, MCA, must be met by the District Court. We specifically noted in Cole that the District Court had found “that Wife was without means to pay her attorney’s fees,” which is precisely the type of finding of financial need that is a prerequisite for an award of attorney fees under § 40-4-110, MCA. Cole, 729 P.2d at 1276.
Alan incurred fees of over $11,000 and Linda incurred fees of less than $8,000. If these amounts were consolidated and then divided, each party would be required to pay approximately $9,500. Linda would therefore have to pay all her own fees as well as $1,500 of Alan’s fees. This obviously translates into an award of fees to Alan.
The District Court did not find that Alan was without means to pay the entirety of his own fees, and we note again, in passing, that the parties are dividing an estate valued at roughly a million dollars. Since such a finding is a statutorily mandated prerequisite for the awarding of fees and costs, the District Court abused its discretion in allowing Alan to recover any part of his fees from Linda’s share of the marital estate. On this issue, we reverse the District Court and remand for entry of judgment on attorney fees in accordance with this opinion.
7. Did the District Court err in allocating the Meeks’ farm to Alan, rather than dividing the farm between the parties?
Linda alleges that the District Court erred in allocating the entire farm to Alan, rather than dividing it and giving each party half. Specifically, she contends that the District Court’s finding that “[i]t [was] not economically prudent to split the farm” is erroneous.
As noted above, the District Court’s findings of fact will not be set aside unless clearly erroneous. DeWitt, 905 P.2d at 1087. Moreover, this Court has repeatedly recognized the long-standing public policy in Montana of keeping farms intact, if possible. Tonne, 733 P.2d 1280; In re Marriage of Glass (1985), 215 Mont. 248, 697 P.2d 96.
Alan expressed a desire to farm full-time after he retires from his job and, someday, to leave the farm to his son. Linda does not require the farm for her continued financial security, nor does the District Court’s refusal to partition this asset prevent her from receiving an equitable portion of the marital estate. The District Court did not abuse its discretion in refusing to divide the farm.
8. Was the District Court’s division of the marital property in this case clearly erroneous?
Linda alleges numerous other errors in the District Court’s division of the marital estate. She disputes the allocation of innumerable items of personal property, from art to farm and lawn equipment, from a $25 “shop vac” to $500 worth of canned, dried, and frozen food. We find nothing in the record that indicates that the District Court abused its discretion. “District courts working in equity, must seek a fair distribution of marital property using reasonable judgment and relying on common sense.” Ira re Marriage of Kimm (1993), 260 Mont. 479, 483, 861 P.2d 165, 168 (citing In re Marriage of Danelson (1992), 253 Mont. 310, 833 P.2d 215). While Linda may not agree with how the District Court allotted the marital estate, she has not shown that the allocation was erroneous.
As noted above, the District Court’s provision for the payment of attorney fees did not comply with § 40-4-110, MCA, the statute which controls such awards. Accordingly, that portion of the order is reversed. In all other respects, the order of the District Court is affirmed.
Affirmed in part, reversed in part and remanded for entry of judgment in accordance with this opinion.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY, NELSON and LEAPHART concur.
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JUSTICE HARRISON
delivered the Opinion of the Court.
Appellant Sourdough Protective Association Inc. (Sourdough) appeals from the Judgment of the District Court of the Eighteenth Judicial District, Gallatin County, Montana, which dismissed Sourdough’s appeal and denied Sourdough’s motion for a stay of proceedings. We affirm.
This appeal originates from the respondent’s, High Ridge Estates of Montana, Inc. (High Ridge), application to the Board of County Commissioners of Gallatin County (Board) for a preliminary plat approval of a proposed subdivision. High Ridge desired to subdivide real property located within the jurisdiction of the City of Bozeman as well as the jurisdiction of Gallatin County.
Initially, High Ridge presented the subdivision concept to the City-County Planning Board which indicated to the Board that it would accept an invitation to review the proposal in total. In January of 1990, the Board declined the City-County Planning Board’s invitation, citing concerns about possible unauthorized expansion of that entity’s planning jurisdiction. Accordingly, High Ridge applied to the Board for preliminary subdivision plat approval. In December of 1990, after public notice and hearing, the Board granted conditional approval of the proposed subdivision application and issued Findings of Fact.
In January 1991, Sourdough appealed the Board’s decision to District Court requesting that a Writ of Mandamus be issued directing the Board to appoint the City-County Planning Board to review the entire project and reverse the Board’s Findings of Fact. In February of 1991, High Ridge, whose motion to intervene was later granted, and the Board filed motions to dismiss under Rule 12(b)(6), M.R.Civ.P. Sourdough moved for a stay on May 6, 1991. The District Cotut conducted a hearing on all motions on May 13, 1991. The District Court denied Sourdough’s motion for a stay on June 3,1991, and dismissed the appeal a day later.
The issues on appeal are as follows:
I. Whether the District Court erred in granting the respondents’ motions to dismiss Sourdough’s petition for appeal.
II. Whether the District Court erred in denying Sourdough’s motion for a stay of proceedings.
We previously set forth the standard of review regarding discretionary trial court rulings as follows:
Our standard of review relating to conclusions of law is not to be confused with our review of discretionary trial court rulings. This has been defined as “encompassing the power of choice among several courses of action, each of which is considered permissible.” See Aldisert, The Judicial Process, 1976, page 759. Such rulings are usually trial administration issues, scope of cross-examination, post-trial motions, and similar rulings. The standard of abuse of discretion will be applied to these rulings.
Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 475, 803 P.2d 601, 603-604. Therefore, we confine our review to encompass only whether the District Court abused its discretion in dismissing Sourdough’s petition for appeal and for denying Sourdough’s motion for a stay.
I. Dismissing Sourdough’s petition for appeal.
Sourdough asserts that it properly appealed under § 76-2-110, MCA. However, this statute deals with planning and zoning issues and cannot be interpreted, as Sourdough urges, to apply to the subdivision issue in the case at bar. Instead, the applicable sections regarding subdivision issues are §§ 76-3-101 et seq., MCA, which is Montana’s Subdivision and Platting Act. The purpose of the Act is to “promote the public health, safety, and general welfare by regulating the subdivision of land-,...” Section 76-3-102, MCA (emphasis added). The legislature did not provide an appeal process under this Act for cases involving decisions of conditional approval of preliminary plats; accordingly, this Court, will not fabricate one. The District Court did not err in concluding that § 76-2-110, MCA, is inapplicable in the case at bar.
In the same manner, Sourdough asserts that its appeal was proper under § 2-4-702, MCA. Again, Sourdough misapplies this statute to the case at bar. Sections 2-4-701 et seq., MCA, are contained in the Montana Administrative Procedure Act (MARA) and apply to administrative agencies. However, the County Board of Commissioners is specifically excluded from the agency definition of MAPA via § 2-4-102(2)(b), MCA, which states that an “[ajgency does not include a school district, unit of local government, or any other political subdivision of the state.” Therefore, the appeal provisions of MAPA do not apply to the case at bar. Since Sourdough cannot properly appeal under § 2-4-702, MCA, the District Court did not abuse its discretion in arriving at that conclusion.
Respondents moved to dismiss under Rule 12(b)(6), M.R.Civ.P., because Sourdough failed to state a claim upon which relief could be granted. We have previously said that a motion to dismiss under Rule 12(b)(6), M.R.Civ.P., should not be granted “unless it appears beyond doubt that the plaintiff could prove no set of facts in support of his claim which would entitle him to relief.” Proto v. Missoula County (1988), 230 Mont. 351, 353, 749 P.2d 1094, 1096; quoting Conley v. Gibson (1957), 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80, 84.
We affirm the conclusion of the District Court that § 76-2-110, MCA, does not contain authorization to Sourdough to prosecute the present appeal, and that § 2-4-702, MCA, does not provide a legal basis upon which Sourdough may prosecute this appeal. We hold the District Court properly granted the respondents’ motions to dismiss Sourdough’s petition for appeal. In affirming the dismissal by the District Court on the foregoing basis, we do not find it necessary to consider the remaining conclusions of the District Court in which it weighed the conduct of the Board of County Commissioners and concluded that the Board did not abuse its discretion.
II. Denial of Sourdough’s motion for a stay of proceedings.
Sourdough asserts that the District Court erred in not granting its motion for a stay of proceedings. A review of the record indicates that Sourdough failed to cite authority for this position. The transcript of the May 13,1991 hearing on motions to dismiss and for a stay further indicates Sourdough’s lack of authority for the stay. The testimony, in part, was as follows:
THE COURT:... So, what do you think about his position that this really isn’t a stay motion. It’s a motion for an injunction.
MR. SCHAPLOW [counsel for Sourdough]: Well, your Honor, we feel like it is a motion for a stay.
THE COURT: What’s your authority for that?
MR. SCHAPLOW: We feel that a motion for stay is appropriate here as we’ve mentioned in our brief. We’re simply asking that the Court stay the action of the County Commissioners until such time as the Bozeman Area Transportation Plan has been updated as will be testified by Mayor Hawks. A motion for stay is a typical motion that’s brought in these kinds of proceedings to hold in obeyance any actions taken by the governing body until such time as the Court decides on the merits, or, as we’ve indicated here, until such time as the Bozeman Area Transportation Plan is updated. THE COURT: You’re asking that the County Commissioners’ actions be stayed at this point.
MR. SCHAPLOW: That’s true.
THE COURT: Haven’t they already acted by approving the subdivision?
MR. SCHAPLOW: Well, they’ve approved it conditionally, by allowing the developer, High Ridge Estates, to go through a lot of procedural applications and so forth, which would ultimately end up in the construction of roads and various other improvements that have been contemplated ....
We agree with the District Court that Sourdough’s motion for a stay is without statutory basis or other authority. In the event that the stay motion is interpreted as a preliminary injunction it must also fail as it does not meet the statutory criteria for such a motion as set forth by § 27-19-104, MCA.
Finding no abuse of discretion, we hold that the District Court ruled correctly in dismissing Sourdough’s appeal and in denying the motion for a stay of proceedings. Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY, HUNT, McDONOUGH and WEBER concur.
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PER CURIAM.
On motion of respondents, it appearing that notice of appeal was served and filed on April 10, 1950, and that no undertaking on appeal was thereafter given or filed, and there was no waiver thereof, and that no transcript on appeal has been served or filed, and that said appeal has not been perfected,
It is ordered that the attempted appeal be and the same is dismissed.
|
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MR. JUSTICE BOTTOMLY:
Original procéeding. On relator’s petition challenging the jurisdiction of the district court in a probate proceeding to set aside and vacate its decree theretofore entered settling the final account of an executrix and distributing decedent’s estate, this court issued a writ of review directed to the respondent court.
On November 13, 1948, Harry Irvin Rice, a resident of Missoula county, Montana, died testate naming as his legatees his widow, Emma H. Rice, his son Harry R. Rice, his daughter Pauline Walsh (now Pauline Sanford) and his two grandsons, Paul Walsh and Wallace Walsh.
Testator’s will, naming Pauline Walsh as executrix, was admitted to probate, and on December 17,1948, letters testamentary issued to such executrix, who thereupon qualified, entered upon her official duties and administered the estate.
On January 19, 1950, on petition of the executrix filed December 31, 1949, the district court made and caused to be entered its order and decree settling the final account of the executrix, determining the inheritance tax and decreeing distribution of the estate.
On June '24, 1950, being more than five months after the making and entering of the aforesaid order and decree, the widow Emma H. Rice and the son Harry R. Rice filed in the district court in the matter of the estate, a motion supported by the affidavit of the movant Emma H. Rice, for an order to set aside the order and decree of January 19, 1950. The motion is grounded on fraud alleged to have been perpetrated against the movants by the executrix.
On June 24, 1950, on the filing and reading of the motion and affidavit, the respondent court issued an order directing the executrix to show cause on a day certain, why the order sought by movants should not be granted.
The executrix interposed a motion to quash the order to show cause and upon the denial of her motion filed an answer to which the movants made reply.
A hearing was had on the issues presented by the motion to set aside, the affidavit of Emma H. Rice, the answer and the reply, following which the court made and filed findings of fact and conclusions of law for the movants and against the executrix, to which findings and conclusions the executrix duly excepted.
Thereafter on September 18, 1950, the respondent court made and entered its order and decree that its prior order and decree of January 19, 1950, be “set aside and vacated.”
Respondents have filed a motion to quash the writ issued herein, but, pending the determination of such motion, all proceedings had and done in the respondent court have been certified to this court for review.
In this original proceeding the relator executrix challenges the jurisdiction of the respondent court to make the order to show cause of June 24,1950, and its order and decree of September 18, 1950.
The statutes limit and define the authority and jurisdiction of a district court sitting in probate. In re Dolenty’s Estate, 53 Mont. 33, 43, 161 Pac. 524.
R. C. M. 1947, section 91-3516, provides: “The settlement of any account and the allowance thereof by the court or judge, or upon appeal, is conclusive against all persons in any way interested in the estate, saving however, to all persons laboring under any legal disability, the right to move for cause to reopen and examine the account, or to proceed by action against the executor or administrator, either individually or upon his bond, at any time before final distribution; and in any action brought by any such person, the allowance and settlement of the account is prima facie evidence of its correctness; provided, the court may, upon motion of any party interested, or upon its own mo'tion, within sixty days after the rendition of the decree in eases of inadvertence, or within sixty days after the discovery of the facts constituting the fraud, reopen or set aside any decree of any settlement on the grounds of inadvertence or fraud.” Emphasis supplied.
On May 14,1949, the inventory and appraisement of the estate was duly filed in the respondent court so that, at and long before the making of the order and decree of January 19, 1950, the movants, Emma H. Rice .and Harry R. Rice, each had notice and were fully informed as to the property listed in the inventory and appraisement. Under the notice, duly given of the settlement of final account and petition for distribution of the estate, the movants knew or could have known the persons to whom it was to be distributed, and the share each legatee was to receive thereunder. Possessing this notice and information, neither movant interposed any objections or took any exceptions to either the inventory and appraisement, the final account of the executrix or her petition for the settlement of such account and for the distribution of the estate, nor did either movant avail himself of any of the relief or procedure expressly provided in R. C. M. 1947, sections 91-3514 and 91-3516 nor did either appeal from the order or decree of January 19, 1950.
This court has stated, in Harrison v. Cannon, 122 Mont. 318, 203 Pac. (2d) 978 at page 982, “* * * this is one of the matters that it was incumbent upon all parties interested in the distribution of the estate to take an interest in, to keep themselves informed about, to be alert to guard their rights until its final determination. ’ ’ See, Kerrigan v. O ’Meara, 71 Mont. 1, 8, 227 Pac. 819; In re Estate of Murphy, 57 Mont. 273, 281, 282, 188 Pac. 146; Montgomery v. Gilbert, 111 Mont. 250, 273, 108 Pac. (2d) 616.
Section 91-3516, supra, gives only a “right to move,” within the sixty-day period, to have the decree reopened or set aside. If the party or the judge does not move within the statutory period, the motion comes too late as the court or judge loses jurisdiction.
In the absence of proper and timely challenge the court loses jurisdiction to grant any relief under the provisions of section 91-3516, supra. See, In re Sullivan’s Estate, 112 Mont. 496, 503, 118 Pac. (2d) 137; 1 Bancroft’s Probate Practice, pp. 45-46, sec. 23; In re Sprigg’s Estate, 68 Mont. 92, 94, 216 Pac. 1108; State ex rel. Kelly v. Second Judicial District Court, 25 Mont. 33, 38, 63 Pac. 717.
The provisions of R. C. M. 1947, section 93-3905, do not provide for the setting aside of a judgment on the ground of fraud being the only ground on which the movants rest their motion. Such relief on such ground while available in a court of equity is not obtainable in a court of probate. State ex rel. O’Neil v. District Court, 96 Mont. 393, 399, 30 Pac. (2d) 815.
If dissatisfied with the distribution adjudged the movants were privileged to take an appeal within the statutory period allowed therefor but this they failed to do. R. C. M. 1947, sec. 93-8003, subd. 3; R. C.M. 1947, sec. 93-8004, subd. 4; Harrison v. Cannon, supra; Hart v. Barron, 122 Mont. 350, 204 Pac. (2d) 797, 805; Hoppin v. Long, 74 Mont. 558, 569, 241 Pac. 636; Merhart v. Powers, 73 Mont. 451, 236 Pac. 1076; State ex rel. Reid v. District Court, 68 Mont. 309, 218 Pac. 558; State ex rel. McHatton v. District Court, 55 Mont. 324, 176 Pac. 608; Finlen v. Heinze, 28 Mont. 548, 73 Pac. 123.
No appeal having been taken and no proper or timely challenge having been interposed the order and decree of January 19, 1950, became final as to movants. R. C. M. 1947, sec. 91-3516 and sec. 91-3902.
Under the facts obtaining herein the respondent court lost jurisdiction upon the expiration of the sixty-day period allowed by statute for directing a challenge against the order and decree of January 19, 1950, hence respondent’s motion to quash the writ issued by this court, lacking in merit, is denied.
The respondent court sitting in probate being without jurisdie tion, its subsequent order denying relator’s motion to quash the order to show cause, the trial court’s findings of fact and conclusions of law filed September 8, 1950, and its order and decree of September 18, 1950, are wholly null and void, and accordingly the respondent court is directed to make an order allowing the motion to quash its order to show cause, and setting aside its findings of fact and conclusions of law filed September 8, 1950, and its order and decree of September 18, 1950, and to reinstate its original order and decree of January 19, 1950, this determination and these directions to be without prejudice to the right, if any of movants to further challenge in a proper court and proceeding the order and decree by which they claim to be aggrieved. It is so ordered.
MR. CHIEF JUSTICE ADAIR and ASSOCIATE JUSTICES FREEBOURN, ANGSTMAN and METCALF, concur.
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JUSTICE TRIEWEILER
delivered the Opinion of the Court.
On April 19,1990, the State filed an Information in the Eighteenth Judicial District Court in Gallatin County, charging Shannon Davis with Sexual Assault. On August 20, 1990, the State amended its Information to add one count of Solicitation of Tampering with Physical Evidence. The District Court, sitting without a jury, tried the case on August 28-31,1990. The court found Davis guilty on both charges. Davis appeals. We affirm.
The issues are:
1. Did the District Court err when it permitted the placement of an opaque screen between Davis and the witness stand during the testimony of two child witnesses?
2. Did the District Court err when it admitted evidence of pending sexual assault charges in another county?
3. Did the District Court err when it allowed the victim’s counselor to testify about the victim’s statements which were made during the investigation of the case?
4. Did the District Court err when it denied Davis’ motion for acquittal which was based on the sufficiency of the proof?
In the fall of 1989, Kathleen Pollard, a kindergarten teacher at Monforton School in Bozeman, contacted the Department of Family Services about her pupil J.R. Ms. Pollard had noticed that J.R., who was then five years old, was dirty, unhealthy, and emotionally underdeveloped. She summoned social worker Gloria Edwards, who interviewed J.R. on September 5, 1989. Ms. Edwards then sought temporary investigative authority but was unsuccessful. Consequently, J.R. remained in the care of her biological mother for several more months while Ms. Pollard continued to monitor her appearance and behavior.
On April 4,1990, Ms. Pollard summoned Ms. Edwards again. Ms. Pollard told Ms. Edwards that J.R. was much more dirty and un kempt that day than she had been before, and that Ms. Edwards should come and observe for herself. Ms. Edwards interviewed J.R., who said, “I have a babysitter, and his name is Shawn, and he makes [my sister] take long naps, and he looks at my peepee for a long, long time.”
J.R. repeated this story the next day, and indicated that by “peepee” she meant her vaginal area. When Ms. Pollard asked J.R. what happened next, J.R. said “he just bodied his own and waited for some stuff to come out of his thing.” Subsequent interviews by Ms. Edwards and child psychologist Eugenia Bellante made it clear that J.R. was describing sexual activity.
On April 5, 1990, Ms. Edwards made arrangements to place J.R. in a foster home. The next day Ms. Edwards took J.R. to the Gallatin County Sheriff’s Office, where J.R. identified Davis as her babysitter in a photographic lineup. On April 19, 1990, the State charged Davis with sexually assaulting J.R. The District Court issued a bench warrant for his arrest that same day.
Davis could not provide bond and remained in jail throughout the pretrial preparation of the case. During his incarceration he placed 37 collect telephone calls to his friend John Kubichek. In one of these phone calls in late April 1990, Davis asked Kubichek to retrieve a parcel from Davis’ trailer and destroy it. Kubichek opened the package and found several photographs of a nude female juvenile later identified as L.D.
Kubichek delivered the package and its contents to the Gallatin County Sheriff’s Office. At that time, several charges were pending against Davis in Madison County for engaging in sexual activity with L.D. Subsequently, the State amended its Information to add a charge of Solicitation of Tampering with Physical Evidence.
The District Court, sitting without a jury, found Davis guilty on both counts after a trial on August 28-31, 1990. The court sentenced him to 20 years at Montana State Prison for the sexual assault and 10 years for solicitation of tampering. The court designated Davis as a dangerous offender and ordered that he complete the prison’s sexual offender treatment program prior to any future release on parole.
I
Did the District Court err when it permitted the placement of an opaque screen between Davis and the witness stand during the testimony of two child witnesses?
On August 22, 1990, the State moved the District Court for an order permitting protective screening during the testimony of J.R. and A.C., a second child witness whose testimony would tend to corroborate J.R.’s testimony by showing that Davis followed a common scheme or plan in his sexual contact with children. The court took preliminary evidence on the matter before trial, heard argument by counsel, and then decided to permit placement of the screen.
The District Court asked a newspaper photographer to photograph the screen after it was in position, and the court then appended those photographs to the record. The screen was a free-standing, hinged space partition apparently intended for use as a temporary room divider. As erected, it stood approximately six and one-half feet high and spanned about ten feet across. The screen was located directly in the line of sight from the witness stand to the counsel table at which Davis was seated and was closer to the counsel table than to the witness stand. With the screen in place, the judge, prosecuting attorney, and defense counsel could view the witnesses, but Davis could not. The screen was removed after the second child witness finished testifying.
Davis now contends that the court erred in permitting the use of this screen. He argues that this device violated his right to confront the witnesses against him as guaranteed by the United States and Montana Constitutions. In the court below, however, Davis did not object or argue on the basis of the State Constitution. By failing to object at trial on the basis of the Montana Constitution, Davis waived his right to have us review that issue on appeal. Section 46-20-104(2), MCA. Consequently, we do not express an opinion today on whether the screening procedure violated the Montana Constitution. We turn instead to the United States Constitution and its accompanying case law.
The United States Constitution provides that “[i]n all criminal prosecutions, the accused shall enjoy the right... to be confronted with the witnesses against him.” Amend. VI, U.S. Const. The United States Supreme Court considered the application of this clause to testimony by child witnesses in two recent cases, Coy v. Iowa (1988), 487 U.S. 1012, 108 S.Ct. 2798, 101 L.Ed.2d 857, and Maryland v. Craig (1990), 497 U.S._, 110 S.Ct. 3157, 111 L.Ed.2d 666.
In Coy, the State of Iowa charged the defendant with two counts of engaging in lascivious acts with children, a felony under § 709.8, Iowa Code. The trial court permitted the state to erect a translucent screen in front of the defendant. The state legislature had authorized this procedure, § 910A.14, Iowa Code, and the trial court did not undertake any independent inquiry into the necessity for it. Lights were then thrown on the screen in a way that allowed the defendant to see the witnesses without allowing the witnesses to see him. Coy, 487 U.S. at 1014-15, 108 S.Ct. at 2799, 101 L.Ed.2d at 863.
The Iowa Supreme Court held that the “trial court had no obligation to make an independent finding of necessity,” thereby implying that the legislature’s determination of necessity in adopting the statute was sufficient. State v. Coy (Iowa 1987), 397 N.W.2d 730, 733. The United States Supreme Court then reversed.
The Court held in a 6-2 decision that the use of the screen at trial violated the defendant’s rights under the Confrontation Clause. Justice Scalia, writing for the majority, said that “the irreducible literal meaning” of the Confrontation Clause is a right to meet the state’s witnesses “face to face” at trial. Coy, 487 U.S. at 1021, 108 S.Ct. at 2803, 101 L.Ed.2d at 867. Justice Scalia declined to consider any exception to this “irreducible literal meaning,” but he suggested that if such exceptions did exist they would require a greater showing than Iowa’s general legislative finding of necessity. Coy, 487 U.S. at 1021, 108 S.Ct. at 2803, 101 L.Ed.2d at 867.
Justices O’Connor and Stevens concurred separately in order to emphasize their
view that those [Confrontation Clause] rights are not absolute but rather may give way in an appropriate case to other competing interests so as to permit the use of certain procedural devices designed to shield a child witness from the trauma of courtroom testimony.
Coy, 487 U.S. at 1022, 108 S.Ct. at 2803, 101 L.Ed.2d at 868 (O’Connor, J., concurring). Justice O’Connor noted that “other competing interests” might outweigh the “preference” for face-to-face confrontation in an appropriate case if the state demonstrated that it “was necessary to further an important public policy,” but that Iowa’s “generalized legislative finding of necessity’ was insufficient. Coy, 487 U.S. at 1024-25, 108 S.Ct. at 2804-05, 101 L.Ed.2d at 869 (O’Connor, J., concurring.) Justice O’Connor subsequently elaborated on this position in Maryland v. Craig.
In Craig, the State of Maryland charged the defendant with a number of sexual offenses. The trial court found that in-court tes timony by the child victims would result “in each child suffering serious emotional distress ... such that each of these children cannot reasonably communicate.” Craig, 497 U.S. at_, 110 S.Ct. at 3162, 497 L.Ed.2d at 676. The court then permitted the children to testify by closed circuit television, a procedure authorized by statute in Maryland. Section 9-102, Maryland Code. This closed circuit television arrangement allowed the defendant to view the witnesses without allowing the witnesses to view the defendant.
The Maryland Court of Special Appeals ruled that this finding was sufficient, but the Maryland Court of Appeals reversed. The Court of Appeals held that the trial court’s finding lacked the specificity required by Coy. Craig v. State (Md. 1989), 560 A.2d at 1128-29. The case therefore squarely presented the Supreme Court with an opportunity to decide just how specific such findings of necessity must be.
The Supreme Court reversed, holding that the trial court’s findings were not necessarily inadequate. Justice O’Connor, writing for a 5-4 majority, elaborated on her opinion in Coy and explained that the state’s interest in protecting victims of child sex crimes from physical and psychological injury “may be sufficiently important to outweigh, at least in some cases, a defendant’s right to face his or her accusers in court.” Craig, 497 U.S. at_, 110 S.Ct. at 3167, 111 L.Ed.2d at 683. The Court reiterated that the key to this analysis is an “individualized” finding of necessity. Craig, 497 U.S. at_, 110 S.Ct. at 3169, 111 L.Ed.2d at 685.
The Court then set forth the following three-part test for measuring the adequacy of these case-specific findings of necessity:
[1] The trial court must hear evidence and determine whether use of [a procedure other than face to face confrontation] is necessary to protect the welfare of the particular child witness who seeks to testify.
[2] The trial court must also find that the child witness would be traumatized, not by the courtroom generally, but by the presence of the defendant.
[3] Finally, the trial court must find that the emotional distress suffered by the child witness in the presence of the defendant is more than de minimus, i.e, more than “mere nervousness or excitement or some reluctance to testify.”
Craig, 497 U.S. at_, 110 S.Ct. at 3169, 111 L.Ed.2d at 685 (citations omitted and elements numbered for convenient reference).
In this case, the District Court relied upon Craig’s three-part test in entering the required individualized finding of necessity. The court found as follows:
There has been testimony in this case that there is the potential for these two young children that they will sustain some trauma. I think the word “trauma” was utilized by an expert witness in this case with respect to [J.R.]. The word “trauma” was not used with [A.C.] in his position as a witness, but the testimony indicates that he will be extremely frightened, extremely scared and, in the mind of the Court, with a 5 and a 6 year old, there is little difference between the technical meanings of words like “trauma” and scared. They’re one in the same. That’s essentially what we’re here to do in our capacity as acting in the interests of the child witnesses and protecting their welfare when they do testify. So there is the potential that the children could be traumatized by the mere presence of the defendant.
Likewise I think there is potential in this situation to be, as I questioned Ms. Bellante very specifically, that at least regarding [J.R.] the emotional distress suffered is more than the minimum amount of nervousness that ordinarily descends on any person that comes into a court of law on a case of importance. I think the same kind of circumstance can almost be presumed with respect to witness [A.C.], so the Court is going to grant the motion to screen the witnesses from the defendant.
Although the court did not track Justice O’Connor’s language exactly, we believe this “individualized” finding complies with all three elements of the Craig test. The District Court found that the potential for trauma existed, that it would result from the mere presence of Davis in the courtroom, and that it would be more than ordinary courtroom nervousness.
Although the defendant in this case could not personally observe the witnesses, we do not find that fact dispositive.
In analyzing the essential elements required by the Confrontation Clause, the Supreme Court, in Craig, included the following elements:
The combined effect of these elements of confron-tation — physical presence, oath, cross-examination, and observation of demeanor by the trier of fact — serves the purposes of the Confrontation Clause by ensuring that evidence admitted against an accused is reliable and subject to the rigorous adversarial testing that is the norm of Anglo-American criminal proceedings.
Craig, 497 U.S. at_, 110 S.Ct. at 3163, 111 L.Ed.2d at 678-79.
The Supreme Court cited hearsay evidence as an example that historically there have been many exceptions to the literal requirement of face-to-face confrontation under the Confrontation Clause. The Court stated:
We have accordingly stated that a literal reading of the Confrontation Clause would “abrogate virtually every hearsay exception, a result long rejected as -unintended and too extreme. [Ohio v.] Roberts, 448 U.S. [56] at 63, 65 L.Ed. 2d 597, 100 S.Ct. 2531.” Thus, in certain circumstances, “competing interests, if ‘closely examined,’ may warrant dispensing with confrontation at trial.” Id., at 64, 65 L.Ed. 2d 597, 100 S.Ct. 2531 (quoting Chambers v. Mississippi, 410 U.S. 284, 295, 35 L.Ed.2d 297, 93 S.Ct. 1038 (1973), and citing Mattox, supra).... Given our hearsay cases, the word ‘confront,’ as used in the Confrontation Clause, cannot simply mean face-to-face confrontation, for the Clause would then, contrary to our cases, prohibit the admission of any accusatory hearsay statement made by an absent declarant — a declarant who is undoubtedly as much a “witness against” a defendant as one who actually testifies at trial.
Craig, 497 U.S. at_, 110 S.Ct. at 3165, 111 L.Ed.2d at 680-81.
The Supreme Court went on to conclude that the well-being of children was such a competing interest that would excuse literal compliance with face-to-face confrontation at trial. It held:
We likewise conclude today that a State’s interest in the physical and psychological well-being of child abuse victims may be sufficiently important to outweigh, at least in some cases, a defendant’s right to face his or her accusers in court.
Craig, 497 U.S. at_, 110 S.Ct. at 3167, 111 L.Ed.2d at 683.
In this case, even though the defendant could not personally observe the child witnesses who testified against him, the basic elements relied upon by the Supreme Court in Craig were satisfied. The child witnesses were physically present in the court, an oath was administered, the children were cross-examined, and the jury was able to observe the demeanor of the child witnesses. Furthermore, as pointed out by the court in Craig, -under the circumstances present in this case, “these assurances of reliability and adversariness are far greater than those required for admission of hearsay testimony -under the Confrontation Clause.” Craig, 497 U.S. at_, 110 S.Ct. at 3165, 111 L.Ed.2d at 682.
We hold that the District Court’s case-specific finding complies with federal law and that, therefore, it did not err in permitting the placement of the screen between the witness stand and the defendant during the testimony of the child witnesses.
II
Did the District Court err when it admitted evidence of pending sexual assault charges in another county?
Davis argues that the District Court erred in admitting evidence of unproven sexual assault charges that were still pending against him in Madison County at the time of trial. This argument occupies just one page of his opening brief and does not specifically attack any particular exhibit or witness. In his reply brief, however, he makes it clear that this argument concerns the charges against him for engaging in sexual activity with L.D. He challenges the timeliness and specificity of the State’s notice as required by State v. Just (1979), 184 Mont. 262, 602 P.2d 957.
We find no merit in this argument because evidence about the charges against Davis for engaging in sexual activity with L.D. was part of the corpus delicti of the evidence tampering charge. In State v. Riley (1982), 199 Mont. 413, 426, 649 P.2d 1273,1279, we said “The State is entitled to present the entire corpus delicti of the charged offense including matters closely related to it, even when such evidence discloses crimes other than those charged.” (Emphasis added.) We elaborated on Riley in State v. Romero (1986), 224 Mont. 431, 438, 730 P.2d 1157, 1162, when we said “[ejvidence of acts which are inextricably or inseparably linked with the crime charged is admissible without regard to the rules governing “crimes” evidence. (Emphasis added.)
The statute governing evidence tampering provides that:
A person commits the offense of tampering with or fabricating physical evidence if, believing that an official proceeding or investigation is pending or about to be instituted, he:
(a) alters, destroys, conceals, or removes any record, document, or thing with purpose to impair its verity or availability in such proceeding or investigation....
Section 45-7-207, MCA. Thus, the State had to prove that Davis was aware of the charges pending against him regarding L.D. and that he ordered Kubichek to destroy potential evidence in order to impair its availability in that investigation. We believe it was necessary and appropriate for the State to explore these charges in detail in order to prove Davis’ awareness of the Madison County charges and the evidentiary value in the Madison County investigation of the items Davis ordered Kubichek to destroy.
We hold that the District Court did not err in admitting evidence of the pending charges in Madison County.
Ill
Did the District Court err when it allowed the victim’s counselor to testify about the victim’s statements which were made during the investigation of the case?
Davis argues that the District Court admitted inadmissible hearsay by permitting Eugenia Bellante to testify about conversations she had with J.R. during the course of J.R.’s therapy. Our review of the record reveals only one objection during Bellante’s testimony. This was a foundational objection directed at the State’s hypothetical question to Bellante about the psychological impact on very young children of face-to-face testimony against the person they have accused of sex crimes. The court overruled this objection, and Davis does not predicate error on this ruling by the trial court. We are unable to construe this foundational objection as an objection to inadmissible hearsay. Thus, the defense neither objected to any questions calling for hearsay, nor moved to strike the answers that were given.
As we pointed out in Part I of this opinion, an objection at trial is essential to preserve alleged errors for our review. Section 46-20-104(2), MCA. We therefore decline to review this alleged error of the District Court in allowing Bellante to testify about her conversations with J.R.
IV
Did the District Court err when it denied Davis’ motion for acquittal which was based on the sufficiency of the proof?
In the Amended Information, the State alleged that the assault on J.R. occurred between October 1989 and April 1990. No witness at trial provided direct testimony that the assault occurred on a particular date falling within that time span. From this, Davis asserts that the State did not prove beyond a reasonable doubt that the offense occurred within the times alleged in the Amended Information.
We conclude that the State did prove that the offense occurred at least once between October 1989 and April 1990. In this regard, the District Court found as follows:
The effect of this testimony is to present the court with significant unrebutted circumstantial evidence reflecting that as of September 5, 1989, [J.R.] did not know the Defendant, but on April 4, 1990, she did know the Defendant — thus the time period alleged in the Information is covered by the evidence when we consider that the Defendant had no access to [J.R.] from September 5, 1989 until October 2, 1989. During that period he was incarcerated in the Gallatin County Detention Center. He was released on bail on October 2, 1989, and remained free on bail until April 10, 1990, when Defendant was again arrested and confined in the Gallatin County Detention Center where he has since remained.
When [J.R.] told Ms. Edwards, on April 4,1990, that she then did know Shawn, her baby sitter, and thereafter told of the significant sexual contact with the Defendant, and picked Defendant out of a photo lineup — after denying that she knew any Shawn or Shannon or September 5, 1989 in conversation with Ms. Edwards — [J.RJ’s acquisition of knowledge of Defendant, and her testimony as to his sexual contact with her had to take place during the precise period of time alleged in the Information. [Emphasis in original.]
We will not overturn judge-made findings of fact unless they are clearly erroneous. State v. Cope (Mont. 1991), [250 Mont. 387,] 819 P.2d 1280, 48 St.Rep. 949. We conclude that the circumstantial inferences the District Court drew from the evidence are not clearly erroneous.
We hold that the because the District Court did not err in finding that the offense occurred within the time alleged in the amended information, it did not err in denying Davis’ motion for acquittal.
Affirmed.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON and WEBER concur.
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PEE CUEIAM.
The clerk of this court has received from Herbert W. Hales, an inmate of the state prison, a letter with the petition of such inmate attached, reading: “Sir. Please file enclosed Petitions and direct same in proper channels for hearing. Also please notify Attorney General Arnold Olsen that your office has received enclosed Petitions. Thanking you for all consideration, I am: Yours Truly, Herbert W. Hales.”
The clerk of this court has submitted the above papers to this court for instructions. Such papers represent that to an information filed in the District Court of the Ninth Judicial District, in and for the State of Montana by leave of court on May 24, 1950, purporting to charge the defendant Herbert W. Hales with the crime of grand larceny of one (1) car heater, one (1) adapter kit, two (2) frost shields, three (8) gallons Prestone, more or less, all of which personal property is of a value of more than $50.00 in the aggregate, the property of another, to-wit: Klinger’s garage, and to appropriate the same to his own use; that said defendant appearing without counsel entered a plea of guilty to the offense charged and that thereafter judgment .of conviction was pronounced against the defendant and he was sentenced to serve a term of years in the state prison.
The papers represent that the true retail value of the aggregate articles set forth in the information amounts to $44.90, and that such value is insufficient to warrant or otherwise sustain the charge of grand larceny of which he was convicted.
Apparently the papers are in the nature of a petition for the common law writ of error coram nobis. See Sanders v. State, 85 Ind. 318, 325, 45 Am. Rep. 29; State ex rel. Emmert v. Gentry, 223 Ind. 535, 62 N. E. (2d) 860, 862, 161 A. L. R. 523; Application of Lyons, 272 App. Div. 120, 69 N. Y. S. (2d) 715, 719; People v. Mons, 195 Misc. 479, 92 N. Y. S. (2d) 14, 17; People v. Adamson, 34 Cal. (2d) 320, 210 Pac. (2d) 13, 15; In re Dyer, 85 Cal. App. (2d) 394, 193 Pac. (2d) 62, 69; People v. Paiva, 31 Cal. (2d) 503, 190 Pac. (2d) 604, 606; People v. Coyle, 88 Cal. App. (2d) 967, 200 Pac. (2d) 546; People v. Butterfield, 37 Cal. App. (2d) 140, 99 Pac. (2d) 310, 311; State v. Woodard, 108 Utah 390, 160 Pac. (2d) 432, 433; Anderson v. Buchanan, 292 Ky. 810, 168 S. W. (2d) 48, 52, 53; People v. Gleitsman, 396, Ill. 499, 72 N. E. (2d) 208, 209; Pike v. Pike, 239 Mo. App. 655, 193 S. W. (2d) 637, 640; Williams v. Dowd, 7 Cir., 153 F. (2d) 328, 330.
In view of the fact that as a general rule the jurisdiction of a writ of eoram nobis is in the court which rendered the judgment and where the record is, 24 C. J. S., Criminal Law, sec. 1606, page 152, it would appear that the petition should be forwarded to the Clerk of the district court of Toole County at Shelby, Montana, and by him called to the attention of the presiding judge of the Ninth Judicial District of the State of Montana, and that the petitioner Hales and the Attorney General be informed by letter of such transfer.
It is so ordered.
|
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MR. JUSTICE HUNT
delivered the Opinion of the Court.
The appellant, Thomas Skelton, contested the will of Nina Hogan on the grounds of incompetence and undue influence. The District Court denied jury instructions on the matter of undue influence. The jury found Nina Hogan competent. The appellant appeals the denial of instructions.
We affirm.
The issue presented is whether the District Court erred in refusing the appellant’s offered instructions on undue influence.
Nina Hogan, testatrix, a long time resident of Helena, Montana, died at age 88 on November 5, 1981. Her husband predeceased her. Only one of her seven siblings, a sister, Lee Sweeney, survived her, but she had a number of nieces, nephews, and children of nieces and nephews living at the time of her death. By the terms of her will the major portion of her estate went to the respondent, Edna Skelton, the wife of one of her nephews, Bill Skelton. Edna and Bill Skelton are ranchers from White Sulphur Springs, Montana. In 1975 Edna Skelton began caring for Nina Hogan after she had an eye operation. Edna Skelton traveled to Helena frequently to care for her, doing housework and errands, up until her death. The record does not show that other relatives extended such care to her. The last few months of Nina Hogan’s life was in a rest home.
The will in question was executed by Nina Hogan on October 20, 1981. This date was about two weeks before her death. The will is essentially the same as a will she executed May 5, 1981. The original of that will was lost or destroyed but Nina Hogan signed a copy of that will on October 13, 1981. These three wills, all essentially the same, left the majority of her estate to the respondent, Edna Skelton. Edna Skelton was also appointed Nina Hogan’s personal representative by the terms of the will.
The October 20, 1981, will was submitted to probate but challenged on grounds of incompetence and undue influence. At a jury trial the District Court refused instructions on undue influence. The matter of incompetence went to the jury and they returned a verdict that Nina Hogan was competent to make a last will and testament at the time of signing the instrument offered for probate as her will. The appellant, Thomas Skelton, contestant of the will, appeals from the District Court’s refusal to instruct upon undue influence.
It is fundamental that a party is not prejudiced by the failure of the trial court to give requested instructions where the evidence does not support the giving of instructions. Magnuson v. Billmayer (Mont. 1980), 616 P.2d 368, 371, 37 St.Rep. 1597, 1600. A party is not prejudiced by a refusal of proposed instructions where the subject matter of the instruction is not applicable to the facts or not supported by the evidence introduced at trial. Associated Agency of Bozeman, Inc. v. Pasha (Mont. 1981), 625 P.2d 38, 42, 38 St.Rep. 344, 348. In order for this Court to reverse on the basis of the denial to give instructions it is necessary that the evidence supported such instructions.
The intention of a testatrix as expressed in her will controls the legal effect of her disposition. Section 72-2-501, MCA. Courts have neither the right nor the power to reframe the will of a decedent or to ' overthrow the expressed. intent therein contained. In re Maricich’s Estate (1965), 145 Mont. 146, 162, 400 P.2d 873, 881. Of course, if the true intent of the testatrix is not manifest in her will because of undue influence the will is not valid, see, Maricich’s Estate, 400 P.2d at 880, and the law will “rewrite” the will to express what the legislature has deemed to be the true intent of the testatrix, usually through application of the laws of intestate succession. See Section 72-2-201, MCA.
The contestant of a will has the burden of establishing undue influence. Section 72-3-310, MCA. Undue influence is the use of a confidence or real or apparent authority for the purpose of obtaining an unfair advantage over another or it may also be the taking of an unfair advantage of another’s weakness of mind or a grossly oppressive and unfair advantage of another’s necessities or distress. Sec tion 28-2-407, MCA; see also, Black’s Law Dictionary 1370 (rev. 5th ed. 1979), citing Calif. Civil Code Section 1575. This definition of undue influence is contained in the statutes on Montana contract law but it has been applied in will cases. See, Adams v. Allen (Mont. 1984), [209 Mont. 149,] 679 P.2d 1232, 1235, 41 St.Rep. 610, 613; Dybvik v. Dybvik (Mont. 1982), [210 Mont. 389,] 654 P.2d 989, 993, 39 St.Rep. 2184, 2189.
Montana case law has established several factors that may be considered in reaching a determination on undue influence:
“1. Confidential relationship of the person attempting to influence the testator;
“2. the physical condition of the testator as it affects his ability to withstand the influence;
“3. the mental condition of the testator as it affects his ability to withstand influence;
“4. the unnaturalness of the disposition as it relates to showing an unbalanced mind or a mind easily susceptible to undue influence; and
“5. the demands and importunities [urgent or persistent solicitations] as they may affect particular testator taking into consideration the time, the place, and all the surrounding circumstances.” Maricich’s Estate, 400 P.2d at 881; Adams, 679 P.2d at 1235.
These factors relate closely to what commentators have considered to be the elements of undue influence as that concept applies to wills. The elements of undue influence usually include a testatrix subject to or susceptible of undue influence, an opportunity to exercise undue influence, a disposition to exert undue influence, and a result appearing to be the effect of undue influence. Thomas E. Atkinson, Handbook of the Law of Wills 256 (2d ed. 1953); 1 Page on Wills Section 15.5 (Bowe-Parker Revision 1960).
Although important, these factors and elements give only a means of attempting to prove or a means of analyzing undue influence. For there to be undue influence it is necessary that there be a destruction of free agency. See, Maricich’s Estate, 400 P.2d at 879-881 and cases cited therein; accord, Atkinson, supra, at p. 255 and Page on Wills, supra, at Section 15.2
The record shows that the respondent obtained a close relationship with the testatrix. The respondent was a frequent friend and aid to the testatrix for about six years. This was a long time association between the respondent and the testatrix and the testa trix’s acceptance of the respondent’s aid created a close relationship sufficient to provide an opportunity for undue influence.
The testatrix was strong willed and independent of mind. However, the record shows that the testatrix’s physical condition deteriorated in the last years of her life. She lost her sight and was confined to a wheel chair. There was conflicting evidence on the testatrix’s mental condition. The record shows a deterioration of mental ability but the jury determined that the testatrix was competent to make her last will. That determination was not appealed and it goes far towards establishing that her mental condition was not critically susceptible to undue influence in the absence of contrary evidence.
The disposition in the will was, in a technical sense, unnatural as it left the majority of the testatrix’s estate to the wife of a nephew. However, this disposition is not unexpected or surprisingly unusual. The testatrix had no spouse at the time of her death and no children. She had one sister but that sister was alienated from the testatrix. Her only surviving relatives were nieces and nephews and the children of nieces and nephews, none of whom extended much care to her. The primary beneficiary was married to one of her nephews. The beneficiary was a close friend and aid.
The record does not disclose that the respondent made demands or urgent or persistent solicitations upon the testatrix. Respondent, as friend and aid, played a part in the events surrounding the execution of the wills but in such fashion that did not exceed the care and aid that she had been giving for several years. Interested and influential the respondent may have been but not to the extent of taking an unfair advantage or destroying the testatrix’s free agency.
The appellant’s arguments on appeal that the respondent committed wrongdoing are largely based on speculation. Evidence in the record does not create a question of fact on undue influence.
We hold that the evidence introduced at trial did not support the giving of the appellant’s instructions on undue influence. The District Court did not err in denying those offered instructions.
Affirmed.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES WEBER, MORRISON and GULBRANDSON concur.
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JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal from the Eighth Judicial District Court, Cascade County. Appellant Robert A. Alcorn (Robert), as personal representative of his father’s estate, appeals the District Court’s determination that a common-law marriage existed between respondent Kathee Melinda Young (Kathee) and Fred “Fritz” Alcorn (Fred), the decedent. In this matter of probate, Kathee asserted rights to an elective share of the augmented estate, a homestead allowance, an exempt property allowance and a family allowance. Robert appeals.
Fred and Kathee met on August 27,1981, at Metra Park, a horse racetrack in Billings, Montana. At the time of their meeting, Kathee was separated from her husband, Fred Young (Young). Kathee’s divorce from Young was complete in May 1985. From the day they met in August 1981, Fred and Kathee cohabited until Fred died on May 10,1991. The couple first lived together in Great Falls, but soon moved to Fred’s ranch house in Vaughn, Montana.
Kathee, 46, has been a Delta Airlines flight attendant for seventeen years. Fred, who died at age 59, owned and operated an automobile dealership in Great Falls. The couple shared a common interest in horses and in horse racing. In fact, they jointly owned race horses and regularly attended horse races together. Throughout her rela tionship with Fred, Kathee retained her last name and filed her tax returns as a single person; however, the couple did share joint bank accounts at First Liberty Credit Union in Great Falls.
During the time Kathee and Fred were together, Fred was plagued with physical ailments — including heart problems, back problems which required surgery, throat cancer which required surgery, and a lung removal which required related surgeries. Fred died of a heart attack on May 10,1991.
In his will, Fred designated his son, Robert, as the personal representative of his estate. On October 1,1991, Kathee filed a Notice of Election Against Will by Surviving Spouse. Kathee contends that she and Fred had a common-law marriage from the day they met until the day Fred died. Robert challenges this assertion.
By will, Fred devised to Kathee one-half of the net value of his ranch and all of his household furniture and household goods. Kathee additionally sought the following entitlements: one third of the augmented estate, pursuant to § 72-2-223, MCA; a homestead allowance of $20,000, pursuant to § 72-2-412, MCA; an exempt property allowance not to exceed $3,500, pursuant to § 72-2-413, MCA; and a family allowance, pursuant to § 72-2-414, MCA.
The District Court conducted a non-jury trial in July and August 1992, and entered its findings of fact, conclusions of law and judgment on February 22,1993. The District Court concluded that Kathee was Fred’s common-law wife and, therefore, granted her the entitlements she sought as Fred’s surviving spouse.
The sole issue before this Court is whether the District Court properly determined that a common-law marriage was established by Kathee Young.
The standard we apply in analyzing a district court’s findings of fact is whether they are clearly erroneous. Steer, Inc. v. Dep’t of Revenue (1990), 245 Mont. 470, 474, 803 P.2d 601, 603; see also Interstate Production Credit v. DeSaye (1991), 250 Mont. 320, 323, 820 P.2d 1285, 1287. When reviewing conclusions of law, we determine whether the court’s interpretation of law is correct. Steer, Inc., 803 P.2d at 603.
Montana recognizes the validity of common-law marriages. Section 40-1-403, MCA. A rebuttable presumption exists in favor of a valid marriage when “[a] man and a woman deporting themselves as husband and wife have entered into a lawful contract of marriage.” Section 26-1-602(30), MCA.
In order to establish the existence of a common law marriage, the party asserting the marriage must show 1) the parties are competent to enter into a marriage; 2) assumption of such a relationship by mutual consent and agreement; and 3) cohabitation and repute.
In re Marriage of Geertz (1988), 232 Mont. 141, 145, 755 P.2d 34, 37 (citation omitted).
Robert argues that Kathee failed to prove that she and Fred were ever married. Robert contends that Kathee was not competent to marry Fred until May 1, 1985, when her divorce with Young was finalized. According to Robert, Kathee failed to introduce evidence that she and Fred agreed to marry one another after her divorce in 1985. Robert asserts that “marriage cannot occur in a piecemeal fashion, but rather comes instantly into being or does not come at all.” Estate of White (1984), 212 Mont. 228, 231, 686 P.2d 915, 916. This Court addressed the same issue in Estate of Murnion (1984), 212 Mont. 107, 686 P.2d 893. In deciding that this concept was not determinative, we stated:
In addition to the consent required for a valid common-law marriage, there must be cohabitation and public repute of the marriage. The latter two factors do not take place instantly, but are continuing factors that extend through the life of the marriage.
Murnion, 686 P.2d at 899 (citing Welch v. All Persons (1926), 78 Mont. 370, 254 P. 179).
The following exchange occurred at the August 17,1992, hearing:
Q. [By Donald Ostrem, Kathee’s attorney] Okay. Now there are several items that you and I have talked about involving common law marriage. Did you feel that you were married to Fritz Alcorn?
A. Yes, I did.
Q. And did you during the entirety of your relationship feel that you were married to Fritz Alcorn?
A. Yes, I did.
Q. Now, did you state that you — when you first started living together, you were in the process of getting a divorce from your previous husband. And you did get that divorce?
A. Yes.
Q. So you also had the capability of consent at the time that you got that divorce is that correct?
A. Yes.
Kathee testified that she and Fred were capable to consent to marriage. She also testified that neither she nor Fred were incompetent or suffering from any disabilities.
We determine, as a matter of law, that Kathee and Fred were incapable of consenting to marriage until Kathee’s divorce with Young became final on May 1,1985. However, persons who cohabit after the removal of the impediment may become lawfully married as of the date of the removal of the impediment. Section 40-1-401(2), MCA; see also Murnion, 686 P.2d at 899; Estate of Schanbacher (1979), 182 Mont. 176, 595 P.2d 1171. Therefore, when Kathee’s divorce to Young became final, the impediment to her common-law marriage to Fred was removed.
Having determined that Kathee and Fred were competent to marry after May 1, 1985, we turn our discussion to whether Kathee and Fred assumed a common-law marriage by mutual consent and agreement. See Geertz, 755 P.2d at 37. In support of her contention that she and Fred mutually consented and agreed to marriage, Kathee claims to have a wedding ring given to her by Fred. The ring, which she wore to the August 17, 1992, hearing, contains two intertwining horseshoes made with Yogo sapphires. According to Kathee, “Fritz had it designed and had it made. And the bracelet — he got a bracelet for me to match.” In addition to the ring and bracelet, Kathee and Fred incorporated the intertwining horseshoe design into their home in Vaughn. The couple had horseshoes cemented into the concrete walkway leading to their house, with their names etched into the concrete beneath the horseshoes.
At the August 17th hearing, the following question was asked: “Did you both agree that you were married, that you were husband and wife?” Kathee responded, ‘Yes, we did.” The combination of Kathee’s wedding ring, the concrete design at the couple’s home in Vaughn, and Kathee’s testimony indicates that Kathee and Fred mutually consented and agreed to a common-law marriage.
We look finally to cohabitation and repute. See Geertz, 755 P.2d at 37. It is clear from the record, and Robert agrees, that Kathee and Fred cohabited for about nine years — from the day they met until the day Fred passed away. They lived together for a short time in Great Falls before moving to Fred’s house in Vaughn. In fact, it is apparent that the couple invested a great deal of time and money in decorating and refurbishing their home. However, as Robert correctly asserts, marriage “does not result from mere cohabitation alone.” Miller v. Townsend Lumber Co. (1968), 152 Mont. 210, 219, 448 P.2d 148, 152 (citation omitted). Therefore, we now turn our attention to repute.
Robert contends that Kathee and Fred admitted in writing that they were not married after May 1,1985. In support of his contention, Robert presented evidence that Kathee: 1) never changed her last name from Young’” to “Alcorn;” 2) did not list Fred as a beneficiary on her employee life insurance, health insurance or retirement forms; and 3) filed her tax returns as a single person throughout her entire relationship with Fred. Moreover, Fred stated in his will that he was a single man.
Kathee testified that she chose to keep the last name Young” for professional reasons. Kathee testified that her mother was listed as beneficiary on her insurance, health and retirement forms. Kathee also testified that she filed her tax returns as a single person because she thought she could not file as “married” unless the marriage was a matter of record and because her accountants “told [her] to file it that way.”
This Court is unaware of any legal requirement that a wife assume the last name of her husband or that she list her husband as beneficiary on her insurance, retirement or health forms. The District Court accepted Kathee’s explanations — including her rationale for filing her tax returns individually rather than as a married person — as valid. The District Court was in the best position to observe Kathee and her demeanor. See Marriage of Ernst (1990), 243 Mont. 114, 122, 793 P.2d 777, 782. We determine that the District Court’s finding as to this issue is not clearly erroneous.
Robert next contends that each witness testified either that Fred and Kathee were not married or that they merely assumed or considered the couple as married. According to Robert, the fact that people assumed or considered the couple as married does not demonstrate that Kathee ever held herself out to be Fred’s wife. See Estate of Slavens (1973), 162 Mont. 123, 126, 509 P.2d 293, 295.
The record, however, is replete with evidence and testimony that Kathee and Fred held themselves out to be husband and wife. Kathee and Fred shared joint checking accounts at First Liberty Credit Union. Kathee wore a wedding ring designed and made especially for her, compliments of Fred. The record indicates that Kathee and Fred spent all of their time — excepting work — together for nine years. Because the couple had a large home, they regularly hosted members from both Fred and Kathee’s families for holidays. Christmas at the Vaughn ranch became a tradition. The couple hosted barbecues and pool parties in the summer for family and friends. Kathee’s family members referred to Fred as “Uncle Fritz.”
Fred spent about eight years of his time with Kathee in poor health. Throughout Fred’s illnesses, Kathee was by his side. The record indicates that Kathee cared for Fred through chemotherapy and through visits to Seattle for treatment.
Robert’s daughter and Fred’s granddaughter, Kara Alcorn, testified that she and her brother, Robert, who live in Washington, would visit Fred and Kathee in Vaughn. Kara testified that she considered Kathee and Fred to be married, that she received Christmas cards from the couple, and that she received information concerning changes in Fred’s medical condition from Kathee.
Robert Layton, Kara’s brother and Fred’s grandson, testified that the relationship between Kathee and Fred was always portrayed to him as that of husband and wife. He further testified that he visited them every summer, that they “always were together” and that he considered them to be married. On occasion, Robert would go to the horse racetrack with Fred, who would introduce Robert as his “grandson” and Kathee as his “wife.”
Judge John McCarvel, a district court judge in Cascade County, was a long-time friend of Fred’s. Judge McCarvel used to see Fred run his horses at racetracks in Spokane, Billings and Great Falls. The Judge testified that he considered Fred and Kathee to be married, that Fred always introduced Kathee as his wife, and that he “thought they were married all the time.” On one occasion, as he left the Great Falls Airport, Kathee was waiting in the truck to pick up Fred. The Judge testified that “[Kathee] hollered to me, Ts my husband on that plane?’ ”
Janice Mountan, Kathee’s sister, testified that “Fritz introduced us as his in-laws.... Everyone knew Fritz as being Kathee’s husband and Kathee as Fritz’s wife.” We need not belabor the record. It is abundantly clear that Kathee and Fred cohabited and held themselves out to the community as being husband and wife.
Robert challenges the District Court’s findings of fact as erroneous and contradicted by the record. Robert contends that the court omitted from its findings references to testimony which indicated that Fred and Kathee were not married. Specifically, Robert points to the testimony of Donna and Chuck Plant — friends of Fred — who stated that Fred had told them after 1985 that he was not married to Kathee. Robert also notes the absence of Robert Emmons’ testimony from the findings. Emmons, an attorney, testified that Fred represented that he was a single man in each of the three wills Emmons drafted for Fred.
It cannot be said that the District Court failed to consider all the testimony merely because it chose not to reference all the testimony it heard in its findings of fact and conclusions of law. The court heard testimony from fifteen witnesses. It found capability of consent to a common-law marriage between Fred and Kathee, mutual assent and agreement to a common-law marriage, cohabitation, and repute in the community as husband and wife.
The court was in the best position to judge the credibility of the witnesses. We will not substitute our judgment for that of the District Court even where there is evidence in the record to support contrary findings. See Trad Industries, Ltd. v. Brogan (1991), 246 Mont. 439, 447, 805 P.2d 54, 59 (citation omitted).
After a careful review of the record, we determine that the District Court’s findings of fact were not clearly erroneous. We hold that the District Court correctly interpreted the law when it concluded 1) that the relationship between Kathee Young and Fred Alcorn constituted a valid common-law marriage; and 2) that Kathee is entitled to claim the elections set forth in her Notice of Election Against the Will filed with the District Court on October 1, 1991.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES GRAY, NELSON and WEBER concur.
|
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JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal from the Eighth Judicial District Court, Cascade County. Appellant Stuart Stringer (Stringer) appeals from the denial of his motions to dismiss on grounds of double jeopardy and on failure of the State of Montana’s (State’s) witnesses to make an in-court identification of the perpetrator. We affirm.
The issues before this Court are:
1. Did the District Court err in denying Stringer’s motion to dismiss on grounds of double jeopardy?
2. Did the District Court err in denying Stringer’s motion to dismiss based on the failure of the State’s witnesses to make an in-court identification of the perpetrator?
On January 12, 1992, at approximately 3:00 a.m., police officers Paul Smith and Jack Allen responded to a disturbance in Great Falls, Montana. Upon arrival at Stringer’s residence, the officers could hear yelling and banging inside. Officer Allen went to the back of the house, while Officer Smith knocked on the front door, which was ajar. No one answered.
Officer Smith saw a woman, later identified as Stringer’s wife, Kathy, on the kitchen floor covering her head with her arms. He also heard Stringer, who stood over his wife, yelling he was going to kill her. Officer Smith entered the house and announced himself again. Stringer heard Officer Smith this time. Officer Smith advised Stringer he was under arrest. Stringer — who had been drinking — responded peaceably at first, offering his hands so that he could be handcuffed.
Stringer, 37, then became inexplicably violent, physically challenging the arrest. By that time, Officer Allen had returned from the back of the house, entered the front door, and assisted Officer Smith in restraining Stringer. Because Stringer resisted arrest so forcefully, Officer Allen radioed for back-up police support.
Officers Smith and Allen forcibly handcuffed Stringer, who, according to officers, was salivating and acting wildly. During the struggle, Stringer kicked Officer Allen in the head. The officers restrained Stringer until back-up help arrived. Because of Stringer’s kicking, the officers bound his legs. The officers then carried Stringer, whose arms were handcuffed behind his back, face down to a police car in front of the house. Stringer resisted continuously. He screamed profanities, threatened to kill the officers, and disturbed neighborhood residents.
Stringer was charged by complaint with two misdemeanors: disorderly conduct, in violation of § 45-8-101(l)(c), MCA, and resisting arrest, in violation of § 45-7-301(l)(a), MCA. After failing to appear on the date scheduled for trial in city court, Stringer was convicted of both charges. Stringer appealed to the District Court on June 19, 1992, whereupon trial was set for November 2,1992.
The November 2nd trial was vacated on the court’s motion due to a jury trial that was in progress. A new trial was set for November 24,1992. The State and Stringer, who was unrepresented by counsel, appeared on November 24th; however, the State was granted a continuance because Officer Smith, a material witness, was ill. The trial was reset for December 15,1992; however, Stringer was granted a continuance because he needed to get an attorney. At that time, the court appointed a public defender, and trial was reset for February 10, 1993.
At the February 10th trial, Stringer appeared without counsel. At the outset, the District Court Judge asked Stringer if he was ready to proceed. He replied, “I still don’t have a lawyer, sir.” Because the trial had already been delayed once to allow Stringer to retain counsel, the Judge determined that the trial should proceed.
After Officer Smith was sworn and testified, the District Court Judge interrupted the proceedings and asked Stringer about a letter in the court file which indicated that John Keith, a public defender for the City of Great Falls, was going to represent Stringer. Stringer responded that he had not contacted Mr. Keith, but that he still wanted a lawyer. The court recessed and unsuccessfully attempted to locate Mr. Keith. The court then vacated the trial to allow Stringer an opportunity to secure counsel.
The trial de novo was finally held on March 19,1993. At the trial, Stringer was represented by Mr. Keith, who moved to dismiss on the grounds that double jeopardy attached at the February 10th trial. The motion was denied. Mr. Keith later moved to dismiss on the basis that Stringer was never identified by the State’s witnesses as the perpetrator. That motion was denied as well.
Stringer was convicted on both charges and sentenced to two days in jail. He was ordered to pay a $300 fine for disorderly conduct and a $100 fine for resisting arrest. All but one day of the jail sentence was suspended, and Stringer was given credit for one day of jail time already served. The fines imposed were also suspended on the condition that Stringer obey all laws and perform forty hours of community service. Stringer appeals.
I
Did the District Court err in denying Stringer’s motion to dismiss on grounds of double jeopardy?
Stringer argues that double jeopardy attached at the February 10, 1993, trial, after the first witness was sworn. See § 46-11-503(l)(d)(ii), MCA. Section 46-11-503(2), MCA, provides in pertinent part that prosecution of the same transaction as a former prosecution is barred unless:
(a) the defendant consents to the termination or waives his right to object to the termination; or
(b) the trial court finds that the termination is necessary because:
(ii) there is a legal defect in the proceedings that would make any judgment entered upon a verdict reversible as a matter of law;
(iii) prejudicial conduct makes it impossible to proceed with the trial without manifest injustice to either the defendant or the state;
In the present case, the District Court based its denial of Stringer’s motion to dismiss on this statute. First, the District Court found that Stringer waived his right to object to termination and consented to the discontinuance of the trial when he stated, “Yes, I do want a lawyer.” Second, the District Comb found that the termination was necessary because there would be a legal defect in the proceedings which would make any judgment entered upon a verdict reversible as a matter of law. The court based this finding on the “possibility that jail time might be in the sentence if the defendant was found guilty” and that the case would have had built-in error because Stringer was not represented by counsel at the time. The court also found that allowing Stringer to continue without counsel would have resulted in manifest injustice to Stringer.
Stringer contends that the court’s findings were clearly erroneous, were unsupported by the record, and resulted from the District Court’s failure to promptly determine the propriety of appointing counsel for Stringer. Stringer argues, and the record shows, that Stringer twice expressed his desire to continue without counsel at the February 10th trial.
The waiver rule was designed to prevent defendants from alleging a double jeopardy bar to retrial where they, not the prosecutors, cause the mistrial or are otherwise responsible for terminating the proceedings: “Where the defendant has an active hand in arranging the disposition of the causes so he might benefit from the results, he waives any double jeopardy claims.” Boze v. State (Ind. 1987), 514 N.E.2d 275, 277 (citation omitted). Although Stringer did not explicitly request a mistrial or continuance, his request for counsel is what prompted the court to vacate the proceedings. The termination of the proceedings ultimately worked to Stringer’s advantage because it allowed him the opportunity to secure Mr. Keith’s representation.
The District Court determined that, pursuant to § 46-11-503(2)(b)(ii), MCA, this case would embody built-in reversible error if Stringer were allowed to proceed without counsel. Section 46-8-101, MCA, which governs the right to counsel in criminal trials, provides in pertinent part:
(2) If the defendant desires counsel, is unable to employ counsel, and is entitled to have counsel assigned, the court shall assign counsel to the defendant without unnecessary delay.
(3) The defendant, if unable to employ counsel, is entitled to have counsel assigned if:
(a) the offense charged is a felony;
(b) the offense charged is a misdemeanor and the court desires to retain imprisonment as a sentencing option; or
(c) the interests of justice would be served by assignment.
Once the District Court determined that Stringer had properly-preserved his right to counsel, the State asserts, it had an affirmative duty under this statute to determine whether Stringer qualified for court-appointed counsel, whether Stringer might be subjected to imprisonment, or whether appointment of counsel was required in the interests of justice. See State v. Skurdal (1988), 235 Mont. 291, 767 P.2d 304. Stringer contends, however, that no legal defect requiring reversal of the judgment would have occurred because the only consequence of the court’s failure to appoint counsel in this misdemeanor case would be to limit any jail sentence which could be imposed. See Scott v. Illinois (1979), 440 U.S. 367, 99 S.Ct. 1158, 59 L.Ed.2d 383.
Stringer’s argument lacks merit. Stringer requested counsel, which triggered the court’s obligation to determine whether appointment was required. See § 46-8-101, MCA. Stringer now suggests that the District Court should have: 1) sacrificed its authority to consider whether the gravity of the offense warranted jail time — a result which the court acknowledged was an option in this case; and 2) disregarded Stringer’s request for counsel and allowed “the trial [to] proceed to its conclusion despite a legitimate claim of serious prejudicial error.” United States v. Dinitz (1975), 424 U.S. 600, 610, 96 S.Ct. 1075, 1081, 47 L.Ed.2d 267, 275.
The District Court properly avoided reversible error by terminating the trial when it did. We hold, therefore, that no bar to retrial exists under § 46-ll-503(2)(b)(ii), MCA. Because we determine that the court properly avoided reversible error, no further inquiry into the double jeopardy issue is necessary.
II
Did the District Court err in denying Stringer’s motion to dismiss based on the failure of the State’s witnesses to make an in-court identification of the perpetrator?
At the conclusion of the State’s case, Stringer moved for dismissal of the charges because none of the State’s witnesses identified Stringer as the perpetrator. The State agrees that the officers who testified during the State’s case-in-chief did not specifically identify Stringer as the perpetrator or otherwise physically indicate Stringer’s presence in the courtroom.
While Stringer could find no Montana case law supporting this argument, he did find where the Wyoming Supreme Court dealt with this issue. See Capwell v. State (Wyo. 1984), 686 P.2d 1148. In Capwell, the court found that the burden of proof on the State to prove all elements of the offense includes identification of the defendant as the perpetrator. Capwell, 686 P.2d at 1157. While an in-court visual identification is not required, there must be some basis for establishing the identity of the defendant as the perpetrator. Capwell, 686 P.2d at 1157.
In Capwell, the court found that the witnesses testified from their personal knowledge of the identity of the defendant. Capwell, 686 P.2d at 1157. In the case before us, Stringer argues that the State’s witnesses, the officers, have no personal knowledge of Stringer’s identity. Merely calling him by name, Stringer asserts, fails to establish any basis for personal knowledge of Stringer’s identity.
The State agrees that the prosecution must prove all elements of the crime charged beyond a reasonable doubt, including the fact that the party charged was the person who committed the offense. See Capwell, 686 P.2d at 1157. However, as the State correctly asserts, Capwell stands for the proposition that the method of identification used in a criminal trial is largely within the discretion of the trial court. See Capwell, 686 P.2d at 1157.
According to the State, there is no requirement that the accused be identified in court as the perpetrator. Rather, it is only necessary that the person committing the crime be identified as the person charged in the information. See United States v. Capozzi (8th Cir. 1989), 883 F.2d 608, 617.
Courts have held that an in-court identification is not necessary where the evidence is sufficient to permit an inference that the defendant on trial is the person who committed the offense. United States v. Morrow (4th Cir. 1991), 925 F.2d 779, 781; Price v. State (Ga. Ct. App. 1986), 348 S.E.2d 740, 742. In fact, a state can satisfy its burden of proving identity through circumstantial evidence. State v. Mecum (Neb. 1987), 404 N.W.2d 431; Creech v. State (Tex. Ct. App. 1986), 718 S.W.2d 89.
Although there was no in-court identification of Stringer, the District Court could have drawn the inference from the evidence presented that Stringer was the perpetrator. When responding to the State’s question regarding the identity of the suspect, Officer Smith testified that the person was ££[l]ater identified as Stuart Stringer.” Furthermore, all the officers referred to the perpetrator as “Mr. Stringer.”
At no time dining the trial was there any question of misidentification. Stringer took the stand and gave his own version of the events which, were previously described by the police officers. Stringer’s brother, wife and daughter also testified on Stringer’s behalf. Nothing in their testimony raises any question that the perpetrator was someone other than Stringer.
No basis exists to reverse the District Court’s ruling denying Stringer’s motion to dismiss for failure to identify him as the perpetrator. The District Court was entitled to infer Stringer’s identity and — in light of the record — correctly determined that Stringer was, in fact, the perpetrator.
Affirmed.
JUSTICES GRAY, TRIEWEILER, HUNT and NELSON concur.
|
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MR. JUSTICE CASTLES
delivered the Opinion of the Court.
This case involves the liability of an insurer in excess of its policy limits for failure to accept a settlement offer within those limits. The appeal is from a judgment entered on a jury verdict in the amount of $4,000 plus an attorney fee of $750.
Earl J. Fowler, the plaintiff, on August 25, 1962, was involved in an accident in Butte, wherein an automobile he was driving struck and injured a pedestrian, one Charles Nau, at or near an intersection of Wyoming and Broadway streets. Fowler was insured with the defendant, State Farm Mutual Automobile Insurance Company, hereinafter referred to as State Farm, under an automobile liability policy which provided coverage up to a limit of $10,000. Under the policy State Farm was obligated to:
“* * * pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of (A) bodily injury sustained by other persons * * * and to defend any suit against the insured alleging such bodily injury * * * but the company may make such investigation, negotiation and settlement of any claim or suit as it deems expedient.”
Nau was taken to a hospital and immediately dismissed, incurring special damages in a minimal amount. Subsequently Nau obtained counsel and instituted a suit for damages against Fowler, praying for damages in the amount of $25,000, later amended to $40,000. The case went to trial, and a jury verdict in the amount of $20,126.80 was returned with judgment entered thereon.
State Farm paid Nau the sum of $10,677.44 obtaining a partial satisfaction of the judgment. Nau pressed Fowler for the excess. Fowler eventually compromised the remaining portion of the judgment, paying Nau the sum of $4,000.
Fowler instituted this action seeking to recover the money paid Nau and to recover attorney fees. The basis for the suit to recover the excess amount of the judgment was set forth in the complaint thusly:
“That defendant was negligent in the performance of the duties which it assumed and wholly failed in the diligent performance thereof in that: It failed to make timely and proper investigations of the circumstances of the said accident and the alleged injuries resulting therefrom; failed to present competent and material evidence at the trial of the said lawsuit, which was known, accessible and available to defendant, or with reasonable diligence could have been so known, accessible and available; failed to conduct negotiations for settlement by way of compromise with reasonable skill and diligence; failed to report to plaintiff offers for settlement made by attorneys for the said Charle Nau; and failed to effect compromise of said claim in good faith; whereby said claim could have been settled within the limits of the said insurance contract. * * *
“That the plaintiff did make written demand upon the defendant to settle the claim of the said Charles Nau, within the limits of said insurance contract; that defendant did fail to so settle the claim although it had opportunity to do so, and did thereby fail to exercise good faith as regards the interest of the plaintiff.”
In an interrogatory, plaintiff listed the acts or omissions of defendant as follows:
“ (a) Failure to produce witnesses to show that Nau had recovered, was working’ in Butte and other places immediately after accident.
“(b) Failure to have a medical examination made on Nau until a few days before trial, although permission had been given to take medical exam on or about April 3, 1964.'
“(c) Failure to settle with policy limits, upon demand of Fowler, although opportunity to do so was present.
“ (d) Misrepresentation of State Farm in advising its attorney and Fowler that it had witnesses to prove only minimal injuries to Nau.
“(e) Failure to determine probability of Fowler’s contention that Nau came out of the side door of the Finlen Hotel, on Wyoming Street, and crossed the street south of the crosswalk. ’ ’
In the original suit of Nau v. Fowler, where judgment for $20,126.80 was entered, no appeal was taken; subsequently the court reporter died and no transcript of the testimony could be had. Thus, all the testimony in the instant action concerning the accident and injuries was brought out on recollection of various witnesses.
As to liability of Fowler in the accident, Fowler contended throughout that he did not hit Nau in the crosswalk, but rather below it. However, statements taken shortly after the accident indicated that at least there was conflicting versions of where Fowler struck Nau and thus whether Fowler was liable.
There were no eyewitnesses other than Nau and Fowler to the accident. A police report of the incident was obtained. Statements of Fowler, Nau, Virginia George, a hotel clerk, and others were obtained. Nau contended that he was struck in the crosswalk while Fowler contended throughout that Nau was, in effect, jaywalking. The police report, while indicating Nau was struck in the crosswalk, did not result in any charges against Fowler, not even reckless driving.
As to the injuries, although physical injuries might be termed minimal, Nau made serious complaints of mental disorders which he attributed to the accident. His prayer for damages was amended from $25,000 to $40,000.
State Farm conducted an extensive investigation both in Montana and Indiana, Nau’s home, but no witnesses were uncovered who, in their judgment, might aid Fowler’s case. Three days before trial State Farm’s attorneys had Nau examined by a pschiatrist. It was clear that Nau suffered a mental disorder, but whether or not it was caused by the accident was not clear.
As to settlement negotiations, it appears Nau’s counsel had inquired about settlement possibilities. Prior to the filing of the complaint, State Farm’s attorneys had offered the sum of $2,500. Nau’s attorney offered to settle for $7,500. No agreement was reached and the case went to trial. No offer was made after the suit was filed. The testimony of the attorneys involved revealed some conversation about settlement during the trial but no offers as such.
On April 8, 1964, Fowler, through his privately retained attorney, wrote State Farm demanding that it settle within policy limits. On April 22, 1964, State Farm replied:
“The only demand that we have received thus far from Mr. Nau’s attorney is for $7,500.00. This demand, on the face of it is excessive. Neither the facts of the accident nor the injuries bear out such a demand by Mr. Nau or his attorney.”
On this appeal defendant-appellant sets forth the issues in nine specifications of error. Both briefs have intertwined discussion and argument into two basic issues which we state as follows:
1. Was proof made of either negligence or bad faith?
2. Were the instructions proper?
Before considering the first issue, we shall discuss the basis of liability in cases where a judgment exceeds policy limits. Extensive annotations in 40 ALR2d 168 and ALR2d Later Case Service 4, p. 649, cover a wide variety of cases. We think that excellent discussions of the applicable law appear in three reported cases arising in Montana: Fetter Livestock Co. v. Notional Farmers U. P. & C. Co., 257 F.Supp. 4; Jessen v. O’Daniel, 210 F.Supp. 317; and National Farmers Union Property & Casualty Co. v. O’Daniel, 329 F.2d 60.
In Fetter Livestock Co. v. National Farmers U. P. & C. Co., supra, 257 F.Supp. at p. 10, Judge Jameson discussed the applicable rules as follows:
“Both this court and the Court of Appeals for the Ninth Circuit passed upon questions relating to recovery for bad faith in the failure of an insurer to settle within the policy limits in Jessen v. O’Daniel, D.Mont. 1962, 210 F.Supp. 317, aff’d National Farmers Union Property & Casualty Co. v. O’Daniel, 9 Cir. 1964, 329 F.2d 60. Counsel for defendant make no reference to either case in a rather exhaustive post-trial brief, but cite numerous cases from other jurisdictions, both federal and state. In turn counsel for plaintiff analyze and distinguish many of those eases, and cite others in support of their contentions. I see no reason to discuss these cases. In my opinion the applicable rules in this jurisdiction are set forth in Jessen v. O’Daniel, supra, and National Farmers, etc. v. O’Daniel, supra, and the cases there cited. It is clear that each case must be decided on its own particular facts.
“It is well settled that ‘Error in judgment in not settling a case within the policy limits is not in itself sufficient to impose liability upon the insurer for any recovery in excess of the limits; nor is the mere fact that the insurer was unsuccessful in the trial of the case sufficient to show that the defense was not made in good faith.’ Jessen v. O’Daniel, supra. (210 F.Supp. at 325.) On the other hand, ‘It has been held that a policy of this type places a fiduciary duty on the insurance company to look after the interests of the insured as well as its own, thus requiring it to consider fairly the insured’s liability for the excess when evaluating an offer of settlement within the policy limits. Failure to do so is bad faith and renders the company liable for its breach of fiduciary duty in the amount of any judgment over the policy limits.’ National Farmers Union Property & Casualty Co. v. O’Daniel, supra. (329 F.2d at 64-65.)
“In Jessen v. O’Daniel this court set forth relevant factors for determining whether an insurer acts in ‘bad faith’ as follows :
“Factors to be considered include (1) whether, by reason of the severity of the plaintiff’s injuries, any verdict is likely to be greatly in excess of the policy limits; (2) whether the facts in the case indicate that a defendant’s verdict on the issue of liability is doubtful; (3) whether the company has given due regard to the recommendations of its trial counsel; (4) whether the insured has been informed of all settlement demands and offers; (5) whether the insured has demanded that the insurer settle within the policy limits; (6) whether the company has given due consideration to any offer of contribution made by the insured. As a rule no one factor is decisive. All must be considered in determining whether the insurer acted in good faith.’ (210 F.Supp. at 326-327).
"Factors (3), (4) and (6) are not present in this case. It is clear that National gave due regard to the recommendation of its counsel and followed that recommendation. The insured and its counsel were kept fully informed. No offer of contribution was made by the insured. Factors (1), (2) and (5) must be considered in determining whether National acting through its claim manager and its local counsel breached its fiduciary duty to its insured and was guilty of bad faith in failing to settle for Vogel’s demand of $43,000.”
Without going into great detail in setting forth the evidence, only element No. 5, that is, that Fowler demanded that State Farm settle, is clearly present. And, even here, Fowler’s only stated reason was "I thought it would be a pretty good idea.” State Farm’s counsel were praised by Fowler. Even though Fowler consulted his own lawyer to draw the demand letter, not once did anyone inspect the State Farm file, although it was available. Very clearly, none of the issues of negligence or bad faith framed by the complaint were proven.
Plaintiff-repondent Fowler in this case relies on Crisci v. Security Insurance Co. of New Haven, Conn., 66 Cal.2d 425, 58 Cal.Rpts. 13, P.2d 173, and quotes extensively from Vol. 32, Journal of the American Trial Lawyers Association to the effect that the courts should adopt a theory of strict liability; also from Vol. 32, pp. 350, 355 to the effect that the Crisci case is a "landmark decision * * * destined to make recalcitrant carriers rue their policy limits and to gamble with the interests of their insureds * *
To the extent that the Crisci case is viewed as abandoning any requirement of proof of bad faith, we would reject it; but it does not go so far. We believe the California court uses the criteria previously discussed by Judge Jameson in the Fetter case.
Applying the sixfold factors from Fetter briefly to the facts here, reveals:
(1) There was no proof of a likelihood that a verdict greatly in excess of policy limits would occur because of the injuries. As stated before the physical injuries produced special damages of a minimal amount. Nau lost no work after the accident; and the mental disorder, although real, was not so clearly caused by the accident as to indicate a likelihood of a greatly excess verdict.
(2) The issue of liability was doubtful to the extent that the insured, Fowler, consistently denied hitting Nau in a crosswalk. Fowler was not charged with any driving violation.
(3) The company gave every regard to the recommendations of trial counsel. Fowler testified as to the cooperation of trial counsel. He stated that counsel “treated me swell” and, “they handled the case very well, swell attorneys, both of them” and, “They were wonderful.” Also in this regard, a factor not previously set out is unique. It was shown that the trial judge indicated to Nau’s counsel that he should accept the $2,500 settlement offer and it was a mistake for counsel not to have accepted it. This was prior to verdict. Thus it appears that even the judge was surprised at the verdict.
(4) The insured was informed of all settlement offers. As. stated before, there was conversation between counsel that was not communicated to him; but no offers as such.
(5) As related before, the insured did demand that the insurer settle within policy limits for the stated reason of a “good idea”. Insured did not hire counsel of his own except to draft such a demand. Insured never inspected the files and never indicated anything except that he was not negligent.
(6) There were never any offers of contribution or even a consideration of such.
Taking the evidence presented as a whole, there was a total lack of proof of any bad faith or even anything amounting to negligence sufficient to show a lack of good faith. The trial court should not have submitted the matter to the jury and should have granted the motion for a directed verdict.
We need not discuss issue No. 2 as it concerns instructions to the jury.
For the foregoing reasons the judgment is reversed and the case dismissed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES HASWELL, JOHN C. HARRISON and BONNER concur.
|
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MR. JUSTICE HASWELL
delivered the Opinion of the Court.
Appeal from a child custody award. The judgment of the district court refused to recognize prior orders of a California court granting custody to the mother and awarded custody to the father. From this judgment the mother appeals.
The sole issue on this appeal is whether prior custody awards to the mother by the California court are entitled to “full faith and credit” and “comity” in Montana. The district court held they were not. We reverse.
On April 21, 1966, a superior court of the state of California entered an interlocutory decree of divorce granting William Marvin Corkill (the father) custody of two minor children born as issue of his marriage to Jean Marie Corkill (the mother). At this time and prior thereto all were residents of California. Following entry of the interlocutory decree but prior to entry of the final decree, the father and the two minor children moved to Montana where all have been legally domiciled ever since. On July 25, 1966 the final decree of divorce was entered by the California court with the child custody provisions remaining unchanged. Thereafter the mother remarried and acquired the surname of Cloninger.
On September 8, 1966 the mother filed a petition in the district court of Meagher county, Montana seeking modification of child custody award in the California decree so as to grant custody to' her. Following a hearing, the district court of Meagher county entered an order dated October 25, 1966 containing the following pertinent findings: (1) that the mother and the two minor children were residents of Montana, (2) that the Montana court had no jurisdiction to modify the California decree, and (3) that the proper court in which to seek modification was the California court that entered the original decree.
Thereafter the mother returned to California, apparently where she now resides, and instituted proceedings seeking modification of the child custody award to grant her custody of the two minor children. These proceedings were brought in the California court that granted the original decree. A hearing was held wherein the father appeared without counsel. At the time the two minor children were temporarily physically present in the state of California for the purpose of visiting their mother, but did not appear before the court at any time during the proceedings. Thereafter the California court modified the original decree and granted custody of the two minor children to the mother.
Thereafter the father and mother, each represented by counsel, appeared before the same California court which by its order dated July 24, 1967, awarded the mother custody of the two minor children subject to the father’s right to have them with him until August 31, 1967. The father and the two minor children returned to Montana prior to August 17 and have remained here ever since.
On August 17, 1967 the father instituted proceedings in the district court in Montana contending that the custody awards to the mother by the California court in December, 1966 and July, 1967 were void for lack of jurisdiction and requesting custody of the two minor children. A hearing was held thereon at which both the father and mother appeared personally and with counsel and at which the children personally appeared and privately expressed their desires as to their custody to the presiding judge.
Following the hearing, the district court entered findings of fact, conclusions of law, and judgment. The gist of the district court’s decision was that the orders of the California court in December, 1966 and July, 1967 were not entitled to full faith and credit or comity because that court lacked jurisdiction to make such awards. The district court’s basis for finding lack of jurisdiction was that the minor children were bona fide residents and domiciliaries of Montana where they were living with their father who had been granted their custody under the original divorce decree which was in all respects valid. The district court concluded that the best interests of the minor children required continuing their custody in the father.
As heretofore stated, the sole issue on this appeal is whether the custody awards to the mother by the California court in December, 1966 and July, 1967 are entitled to full faith and credit or comity in Montana. It is important to note that no issue is raised upon this appeal concerning the jurisdiction of Montana courts to readjudicate custody of minor children now domiciled in this state based upon a change in conditions from those that existed at the time of a previous valid custody award by the court of a sister state.
The United States Constitution requires that Full Faith and Credit shall be given in each State to the * * * Judicial Proceedings of every other State * * Art. IY, Sec. 1, U.S. Constitution. The United States Congress enacted supplementing legislation providing in part:
“Such * * * judicial proceedings * * * • shall have the same full faith and credit in every court within the United States * * * as they have by law or usage in the courts of such State * * * from which they are taken.” Act of June 25, 1948, Ch. 646, 62 Stat. 947, Title 28 U.S.C.A. § 1738. The application of these constitutional and statutory provisions to child custody awards in divorce cases is a source of never-ending confusion. Modern conditions of a mobile population and the lack of finality of child custody awards accentuate the problems in this area.
A universally recognized exception to the constitutional requirement that full faith and credit be given to court orders and judgments of sister states is where the court of a sister state lacks jurisdiction to hear and determine the matter adjudicated. Milwaukee County v. M. E. White Co., 296 U.S. 268, 56 S.Ct. 229, 80 L.Ed. 220, and cases therein cited. In such cases full faith and credit need not be given the judgments or orders of courts of a sister state because they are null, void and without legal effect even within the state in which they Avere rendered.
This brings us to the crux of the problem in the instant case — did the California court have jurisdiction to award the custody of the minor children to the mother by its orders of December, 1966 and July, 1967?
Two divergent lines of authority are found in the past decisions of this Court, one of which is illustrated by the case of State ex rel. Nipp v. District Court, 46 Mont. 425, 128 P. 590, and the other of which appears in the case of Application of Enke, 129 Mont. 353, 287 P.2d 19.
In the Nipp case the parents were divorced in Nebraska Avith custody of the son granted to the father and custody of the daughter awarded to the mother, with each- parent granted visitation rights of the' child awarded to the custody of the other parent and each parent being enjoined from interposing any obstacle or hindrance to the other. Thereafter the father moved to Montana with his son and established residence here. Subsequently the mother petitioned the Nebraska court for modification of the decree to grant her custody of the son, and the Nebraska court modified the original decree accordingly. Thereafter the mother filed a habeas corpus petition in a Montana district court seeking custody on the basis of the modified Nebraska decree. Under these circumstances this Court held that the amended Nebraska decree was entitled to full faith and credit in Montana and was conclusive in the absence of proof of a change in the fitness of the custodian of the child or a change in the circumstances affecting the custody of the child subsequent to rendition of the existing custody award. This Court’s rationale in determining that full faith and credit be given to the Nebraska custody award is expressed in the following language:
“This must be the result; otherwise the court of the state in which a controversy should arise subsequent to the date of the decree would, sit as a court of review of the action of a court of a sister state having the same jurisdiction, thus according neither faith nor credit to its findings as to the fitness of the custodian selected by it. At the same time the restriction does not interfere with the exclusive right which the courts of each state have to determine the status of persons found within their jurisdiction without control or restriction by the laws of a sister state.” State ex rel. Nipp v. District Court, supra, 46 Mont., at p. 436, 128 P., at 593.
The other line of authority is represented by Enke, supra. There the parents and the two minor children were residents of California when the father and mother came to a parting of ways. At that time the father and mother executed a written custody agreement providing for custody in the mother and permitting her to take the children with her and reside in Montana subject to certain visitation rights granted the father. Subsequently the mother sued for divorce in California and was granted an interlocutory decree granting her sole custody of the minor children and the right to determine their place of residence, subject to certain visitation rights granted the father. Following entry of the interlocutory decree, the mother and children returned- to Montana where they have continuously resided ever since. About a year later the California court entered a final decree of divorce containing the same custody provisions. Some two years later the mother remarried.
About ten years after entry of the interlocutory decree, the father petitioned the California court for modification of the decree to permit him to have custody of the two minor children during July of each year — notice of the proceedings was given the mother by service upon her in Helena. She authorized an attorney of her selection to appear and resist the application for modification in the California court, but neither she nor the minor children attended the hearing nor were physically present in California at that time. The California court granted the modification requested by the father. The father filed an original proceeding by writ of habeas corpus before this Court to obtain custody of the two minor children during July under the modified California custody award.
This Court held that the modified California custody award was made by a couit without jurisdiction, accordingly was not entitled to full faith and credit in Montana, and discharged the writ. The basis of the holding was that the courts of Montana wherein the minor children were domiciled have jurisdiction to determine their custody; that the California court voluntarily surrendered further jurisdiction concerning custody by entry of a decree with consent of the husband and giving sole custody to the mother and granting her the right to fix their residence, and could not thereafter revive its original jurisdiction after the children became domiciled in Montana on the theory of continuing jurisdiction in child custody awards.
In our view, the decisions in Nipp and Enke are distinguish able on the facts of the respective cases. In Nipp the child’s domicile was established in Montana in violation of the original custody award and the Nebraska court in no way surrendered its original and continuing jurisdiction over custody; in Enke, the children’s domicile was established in Montana by express consent of both parents coupled with a custody award to the mother authorizing her to determine the children’s residence, the California court thereby voluntarily surrendering any further jurisdiction to modify the original custody award upon establishment of the children’s domicile in Montana. In both cases the controlling factor was whether the court of a sister state had jurisdiction to make the custody award in question. If it did, its award was entitled to full faith and credit in Montana; otherwise its award was a nullity even in its own state and was entitled to no faith, credit or effect here. Thus in Nipp full faith aud credit was given to the Nebraska decree by the courts of Montana because the Nebraska court had jurisdiction to make the custody award in question, while in Enke full faith and credit was denied the California award because that court lacked jurisdiction to make it.
Nonetheless there is a fundamental difference in the central holding of the two cases. Nipp recognizes that a court of a sister state lawfully possessing jurisdiction to make a child custody award retains continuing jurisdiction to modify such award even though such child subsequently becomes domiciled in another state. Enke denies jurisdiction to determine custody to any court outside the state of the child’s then existing domicile. With this basic holding in Enke we cannot agree and expressly overrule it.
In our view, the court of a sister state entering a valid custody order retains continuing jurisdiction to modify such award based upon changed circumstances affecting custody since the original award. Section 21-139, R.C.M.1947; Cal. Civ.C. § 138. A change in the child’s domicile to a sister state, in itself, does not deprive the court of original award of con tinuing jurisdiction. State ex rel. Nipp v. District Court, supra. However, it may invest the courts of the child’s new domicile with concurrent jurisdiction to readjudicate custody based upon changed circumstances affecting custody since entry of the existing valid custody award. Sampsell v. Superior Court, 32 Cal.2d 763, 197 P.2d 739 (1948); Fenner v. Bassett, Alaska, 412 P.2d 318, 320 (1966).
Thus the courts of either state may possess jurisdiction to make a subsequent custody award, but such subsequent awards must be based on changed conditions affecting custody since entry of the existing valid custody award. In this manner, the constitutional requirement that full faith and credit be given to valid judgments and orders of the courts of a sister state is satisfied.
In the instant ease the California court had jurisdiction to make a custody award concerning the two minor children in the original divorce proceeding. It had jurisdiction over the parents by virtue of process and appearance and jurisdiction over the children’s custody by virtue of their domicile in that state. It had jurisdiction over the subject matter by virtue of the divorce laws of the state and the issues raised in the divorce case. Its child custody award in the original divorce decree was within its jurisdiction and in all respects valid. The California court retained continuing jurisdiction to modify its original child custody award by virtue of express provisions of statute. Cal.Civ.C. § 138.
At the subsequent hearings in December, 1966 and July, 1967 the California court possessed jurisdiction to modify the previous award based on changed circumstances affecting custody since the existing award. This continuing jurisdiction existed by virtue of the express statutory authority heretofore noted, coupled with personal appearances by both parents before the court together with physical presence of both minor children within the state of California. The orders of the California court in December, 1966 and July 1967 were within its jurisdiction and in all respects valid. Hence they. were entitled to full faith and credit in Montana and the district court erred in holding to the contrary.
As these awards of the California court are entitled to full faith and credit, a detailed discussion of comity appears superfluous. Suffice it to say that comity dictates a like result, there being no supervening public policy of Montana preventing recognition of the California custody awards herein. (For rationale see In re Anderson’s Estate, 121 Mont. 515, 194 P.2d 621).
Our decision herein is not to be construed as denying concurrent jurisdiction to Montana courts to adjudicate custody of the minor children herein based upon a change in circumstances affecting custody since entry of the existing valid California award of July, 1967. Such was not the situation in the instant case, however, under the pleadings, issues, or decision of the district court.
The judgment of the district court is reversed and the father’s complaint and petition dismissed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES CASTLES and BONNER, concur.
MR. JUSTICE JOHN C. HARRISON, dissents.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
Mary Rowan appeals from an amended judgment entered by the Rosebud County District Court, Sixteenth Judicial District, denying her motion to hold her former husband Dr. Gerald E. Rowen in contempt for failing to make maintenance payments to her as provided in the decree, and for a modification of her maintenance payments up to a monthly sum of $1,250.
Instead, the District Court ordered the husband to pay the wife arrearages totaling $2,229 and one-half of her attorney fees in the sum of $625.
The 30 year marriage of the parties was dissolved on September 7, 1976, upon the petition of the husband, who appeared in the action with counsel. Wife did not contest the dissolution action. The District Court incorporated in its decree a separation and property settlement agreement that had been executed between the parties on August 11, 1976. The record does not show the wife was then represented by counsel.
On September 23, 1980, wife filed her motion in the District Court for a show cause order commanding husband to appear and show cause why he should not be held in contempt for his failure to pay delinquent maintenance monies to her, for reasonable attorney fees, and for a modification of the maintenance award contained in the decree to $1,250 per month for her support. Hearing was had on her motion, findings and conclusions were submitted by both parties, and on November 14, 1980, the District Court entered its findings of fact and conclusions of law. Her motion for contempt was denied, as was her motion to increase the monthly maintenance award to her, the District Court finding that there was no showing of changed circumstances so substantial and continuous as to make the terms of the property settlement agreement unconscionable. However, the District Court did determine that by interpreting the property settlement agreement, that the husband was in arrears on maintenance payments to the wife in the total sum of $2,229 and that husband should pay $625 to the wife toward her attorney fees and costs. It is from this order, as amended on January 19, 1981, that wife appeals.
The center of controversy is the following paragraph in the property settlement agreement between the parties which is incorporated in the decree of dissolution and which provides for a monthly maintenance award to the wife:
“To pay to the Wife as alimony the sum of $750.00 per month commencing on September 1, 1976, and continuing each and every month thereafter, subject to the following contingencies: (1) This amount of $750 per month is based upon 13 percent of the Husband’s taxable income and if said income should rise or fall then the $750 shall be adjusted to provide that the wife shall receive 13 percent of the Husband’s taxable income each calendar year. In this regard, the Husband will agree to make any tax returns or other business records available to the Wife. The alimony payable hereunder shall be adjusted on May 1 of each year, based on the previous calendar year’s taxable income.” (Emphasis added.)
The District Court found that the term “taxable income” has a definition set forth in section 63 of the Internal Revenue Code (26 U.S.C.A. §63). It further found that deductions permitted under the code are (1) expenses, (2) alimony, (3) exemptions, (4) Keogh plan, and (5) zero bracket deductions.
However, the District Court determined that the husband should not be permitted to deduct alimony in determining his taxable income as that would create a “double deduction;” and also that the exemptions claimed by the husband should not be allowed as “that would give the doctor an opportunity to unilaterally reduce his alimony payments to an unconscionable figure.”
Based upon its interpretation of the term “taxable income” foregoing, the District Court recomputed the amounts that the husband should have paid to the wife and determined an arrearage in the total of $2,229.
The attorney who represented the husband (there is an indication in the transcript that he may have represented both parties in the original divorce action, but that does not otherwise appear in the court record) testified that in drawing up the property settlement agreement and providing for the monthly maintenance award to the wife he had used the figure of $69,623 as the taxable income of the husband for 1975 to determine a monthly payment of $750 per month based upon 13 percent of the husband’s taxable income. The figure of $69,623 had been given to the attorney either by the husband or the husband’s acountant. The attorney also testified that there was discussion in his office between the parties as to what the income from the medical profession would be, and that the husband had concern that the income could fall or rise and accordingly the monthly maintenance should be adjusted. The attorney also testified that in determining the taxable income, he would not have deducted the alimony payments, although the Internal Revenue Code section provides that alimony is a deduction in determining taxable income for income tax purposes.
In truth, in the year 1975, immediately preceding the marital dissolution, the gross income rather than the taxable income of the husband had been $69,623.
In the years following the marital dissolution, the husband made monthly payments to the wife based upon his taxable income as shown in his income tax returns. The following table taken from his income tax returns will indicate the gross income, deductions, taxable income, annual maintenance and monthly maintenance paid to the wife using the taxable income figures:
1979 1978 1977 1976 1975
Gross Income $79,118 $75,912 $68,231 $80,494 $69,623
Deductions 27,459 25,504 24,696 22,519 19,030
Taxable Income 51,659 50,408 43,535 57,975 50,593
Annual Maintenance (13%) 6,716 6,553 5,660 7,537 6,577
Monthly Maintenance (-í- 12) 560 546 472 628 548
The husband paid wife $750 per month until the adjustment occurred in the year 1977. Thus, the monthly maintenance to wife dropped from $750 to $628 on May 1, 1977; decreased to $472 per month on May 1, 1978; increased to $546 per month on May 1, 1979; and increased to $559.64 on May 1, 1980.
The District Court further found that wife was capable of earning $5,200 annually over and above the maintenance she was receiving from the petitioner and that the husband had not had an increase in his income sufficient to meet the requested amount of increase by the wife.
On appeal, the wife contends that the District Court erred (1) in not interpreting the term “taxable income” to mean “total income” of husband; (2) in its determination of the amount of arrearages due wife; and, (3) in failing to adopt the findings and conclusions submitted by wife which would have held the maintenance award provision in the decree to be unconscionable and permitted modification.
The property settlement, incorporated in the decree, provides that the maintenance payments shall terminate upon the remarriage of wife. This language shows clearly that the payments are for support and maintenance. See Bertagnolli v. Bertagnolli (1979), Mont., 604 P.2d 299, 36 St. Rep. 2250. The separation agreement does not expressly preclude or limit modification of its maintenance terms. The District Court therefore has power to modify such provisions by modifying the decree. Section 40-4-201(6), MCA. The District Court may modify maintenance provisions in a decree upon a showing of changed circumstances so substantial and continuing as to make the terms unconscionable. Section 40-4-208(2)(b)(i), MCA.
The District Court chose not to modify the maintenance provision. It chose instead to interpret the term “taxable income,” so as to exclude alimony and personal exemptions as deductions in determining taxable income. There is support in the record for the exclusion of alimony based upon the attorney’s intention (not the parties’) that alimony should not be a deduction in determining income for purposes of maintenance between the parties. There is no support in the record for a determination that personal exemptions were not to be deducted in determining taxable income. Undoubtedly the District Court felt that interpreting “taxable income” in strict accordance with the Internal Revenue Code definition would be unconscionable as far as the wife was concerned and attempted to ameliorate that unconscionability.
We determine that the maintenance provision in the decree, incorporated from the separation agreement, is indeed unconscionable as to the wife, and that the facts in the case as a matter of law show changed circumstances so substantial and continuing as to make the maintenance provision unconscionable. In support thereof, we cite these facts from the record.
At the time of the decree, when his gross income was $69,623, husband agreed to pay wife the sum of $750 per month. In fact his taxable income at that time was $50,593. The husband agreed therefore to pay 18 percent of his taxable income in maintenance in the first year. The husband made payments of $750 per month until May 1, 1977. At that time, he calculated his taxable income for 1976 in the sum of $57,975, and reduced his monthly payments to his wife to the sum of $628. In the ensuing years through 1979, husband’s gross income varied from 98 percent of $69,623 (his 1975 gross income) to 116 percent thereof. In the same period of years his $750 payments to his wife varied from 63 percent to 75 percent thereof. The tax returns of the husband for the period 1976 through 1979 show items which make the calculation of the maintenance award based upon taxable income unconscionable both to the husband and the wife. For example, the husband sold a residence in that period for which he received a capital gain, and that capital gain income was included in the computation of taxable income which meant a gain to the wife. On the other hand, husband spent $1,293 in 1978 attending professional meetings but $4,142 in 1979. Each of these professional costs constitute deductions in calculating the wife’s maintenance. Thus, husband has it in his power by various charge-offs to his business and other items substan-tiglly to reduce the monthly payments of maintenance to his wife. We do not say that he has exercised this power; the very existence of the power in the decree makes it unconscionable as to the wife.
These facts, incontrovertible from the record, constitute as a matter of law changed circumstances so substantial and continuing as to make the terms unconscionable. See Kronovich v. Kronovich (1978), Mont., 588 P.2d 510, 35 St.Rep. 1946; section 40-4-208(2)(b)(i), MCA. The amount of maintenance in this case is beyond the control of the wife and within the control of the husband and for that reason the District Court is empowered by section 40-4-208, MCA, to reopen the judgment and modify the maintenance provision. See In Re Marriage of Jorgensen (1979), Mont., 590 P.2d 606, 36 St.Rep. 233.
The judgment of the District Court as to contempt and attorney fees in the prior District Court action is affirmed. The determination of the District court with respect to ar-rearage and maintenance is reversed and the cause is re manded with instructions to the District Court after hearing to find and determine a proper sum for maintenance to be paid by husband to the wife from and since the date of her application for any amounts of maintenance paid in that period. The District Court shall further determine such attorney fees as may be proper for the prosecution of this appeal to be awarded to the wife, plus her costs in this Court, and any other further relief meet in the cause, including additional attorney fees and costs in any retrial of the maintenance issue.
MR. CHIEF JUSTICE HASWELL, and JUSTICES DALY, WEBER and MORRISON concur.
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MR. JUSTICE HASWELL
delivered the Opinion of the Court.
This is an appeal by defendant, John Ray Bouldin, from conviction of the crime of forcible rape and from denial of his motion for a new trial. The case was tried by jury in the district court of Park county before the Hon. Jack D. Shanstrom, district judge, who sentenced defendant to a term of 12years in the state prison.
Broadly speaking, defendant was charged with the forcible rape of an adult female; his defense admitted the intercourse but claimed the prosecutrix consented to it.
The essential facts disclosed by the evidence indicate that on the evening of July 20, 1968 the defendant, his neighbor Dennis McLane, and their wives, visited at least four Livingston bars where they engaged in various activities, including drinking and dancing, returning to the McLane apartment about 2:00 a.m. on July 21.
At the apartment defendant suggested to his neighbor that they leave their wives there and go back uptown, get some beer and girls, and finish their party. Defendant’s wife was nine months pregnant at the time, and the couple had not engaged in sexual relations for approximately one month. After leaving the apartment the evidence is conflicting but it is agreed that at about 3:00 a.m. both men were back at their respective apartments.
The prosecutrix states that at some time prior to 3:00 a.m. the defendant entered her apartment, grabbed her, threatened her, dragged her into the bedroom of her apartment, took off her clothes, and his, and forcibly raped her, during which time she slipped into unconsciousness.
She testified that she did everything she could to resist defendant’s attack. At no time did she encourage him or consent to his advances, she tried to kick him “where it hurts”, but despite her words and actions the act was completed. During the act, or immediately before penetration, defendant told her he had laid a knife on the bed and he would use it on her if she did not satisfy him. Prosecutrix further testified that, although she never saw a knife, she was afraid for her life and she blacked out.
"When prosecutrix awoke, defendant was gone. She saw a wallet laying on the bed, which was later identified as belonging to the defendant by his name and picture on a Montana driver’s license. She picked up the wallet and was about to go for help when she saw and heard defendant’s wife knocking on her front door. She hid until Mrs. Bouldin left.
On the other hand, defendant states that he saw a light on as he passed the apartment of the prosecutrix and he stepped up on the front porch. The door was open and the prosecutrix was sitting in the living room. Defendant contends she recognized him, talked to him and invited him inside; that he had previously known her and a few years earlier had dated her, and on one occasion they had engaged in sexual intercourse.
Defendant testified they talked about old times for a few minutes, after which they had a short period of “making out”. Both then decided to go into the bedroom, there disrobed and had intercourse, with the consent of the prosecutrix. Defendant denies having a knife in his possession, threatening the prosecutrix, or any physical or verbal resistance on her part. After the act, he left the apartment and returned to the McLane house. Defendant was with the prosecutrix admittedly for approximately twenty minutes and does not deny the act of intercourse.
After realizing he had lost his wallet, defendant ordered his wife to retrieve it. Upon knocking on prosecutrix’s front door and getting no response, and then going to the back door with similar results, defendant’s wife returned to where he was waiting, and they then went to their own apartment.
Prosecutrix then left her apartment and aroused a near-by neighbor, Mrs. Bruning. As the neighbor came to the door, a male friend of the prosecutrix arrived and subsequently took the prosecutrix to the Livingston police station where a complaint was filed. A short time later the male friend went to the home of the defendant and took him to the police station where he was identified by the prosecutrix as the one who had attacked her.
At the preliminary hearing, in the presence of the defendant and his counsel, Mrs. Bruning testified under oath that prosecutrix had awakened her from sleep and she had gone to the door thinking it was the defendant’s pregnant wife. She further testified she heard prosecutrix yell something as she ran to her friend’s ear. On cross-examination Mrs. Bruning testified as to what she later learned of the incident. This testimony was taken by a court reporter at the preliminary hearing and later reduced to writing. Upon the trial, when the witness could not be located by the state, proper foundation was laid for admission of the testimony given at the preliminary hearing. It was read to the jury at defendant’s trial in the district court without objection by defendant.
Defendant has raised four issues on appeal which will be discussed in the order set out below:
1. Whether the absence of counsel at the pre-trial identification of the defendant by the prosecutrix in a single person person lineup tainted her in-eourt identification so as to constitute reversible error.
2. Whether it was reversible error to admit the testimony of Mrs. Bruning taken at the time of the preliminary hearing.
3. Whether there was error in the giving of court’s instruction No. 24 defining and explaining the elements of the crime.
4. Whether there was an insufficiency of the evidence to support the conviction.
Directing our attention to the first issue — whether the absence of counsel at the pre-trial identification of defendant by the prosecutrix in a single person lineup tainted her in-court identification — depends on the “totality of circumstances” which surround the identification process (Stovall v. Denno, 388 U.S. 293, 87 S.Ct. 1967, 18 L.Ed.2d 1199), and unless this Court is able to declare a belief that it did not contribute to defendant’s conviction beyond a reasonable doubt, defendant is entitled to a new trial (Chapman v. State of California, 386 U.S. 18, S.Ct. 824, 17 L.Ed.2d 705).
In the absence of evidence that the in-eourt identification of defendant had an independent origin or that the error in any event was harmless, a pre-trial identification of the defendant in a single person lineup in the absence of counsel constitutes reversible error (United States v. Wade, 388 U.S. 218, 87 S.Ct. 1926, 18 L.Ed.2d 1149). However, the circumstances reflected by the record in this case show the identification in question was based on several independent sources sufficient to remove it from the strictures of the Wade ease, supra. We therefore hold that, in view of the totality of circumstances, the admission of the in-court identification constituted harmless error beyond a reasonable doubt. Defendant’s defense here asserted that he knew the prosecutrix, having had, according to his version, previous intercourse with her. Thus defendant by his own defense asserts that the identification could not have contributed to his conviction.
The identification by the prosecutrix at the trial was based on no less than three independent sources. There was sufficient light in her bedroom so that she could see her assailant clearly enough to positively identify him. During the act they were face to face with sufficient light for her to get a good look at his physical appearance and his facial features. After the act she could see the wallet which itself provided ample evidence that the defendant had been in the room. It is uneontested that the wallet belonged to the defendant.
One further fact demonstrates that the error, if any, was harmless beyond a reasonable doubt. Defendant admits his presence in the bedroom, his ownership of the wallet, and his sexual intercourse -with the prosecutrix. Under such circumstances, what possible bearing could the prosecutrix’s identification of defendant have upon his conviction? Additionally, defendant, having raised the defense of consent did not object at the trial to the admission of the pre-trial identification.
Proceeding to the second issue — whether it was reversible error to admit the testimony of Mrs. Bruning taken at the time of the preliminary hearing depends on the appli cation of section 95-1802 (e), R.C.M. 1947, and compliance with its terms.
In State v. Zachmeir, 153 Mont. 64, 453 P.2d 783, Justice Bonner, speaking for a unanimous Court, stated:
“In our opinion, what the United States Supreme Court said in [Mattox v. United States, 156 U.S. 237, 15 SCt. 337, 39 L.Ed. 409] with regard to deceased witnesses should also apply with regard to any sworn testimony where the defendant has been afforded an opportunity to cross-examine the witness and where it has also been shown that after due diligence the witness cannot be found, and his absence was not procured by the party offering the testimony.”
Again, as in Zachmeier, we can see no error in the use of sworn testimony of an absent witness where the accused has had an opportunity to cross-examine and test the recollection and testimony of the witness at a prior judicial proceeding.
The admission of the testimony of a witness given at a preliminary hearing in defendant’s presence, which witness has been cross-examined by defendant’s counsel, and which testimony has been recorded and transcribed by a court reporter, is expressly admissible in evidence under the provisions of section 95-1802 (e), R.C.M.1947, proper foundation having first been laid. Insofar as they are inconsistent with this holding, the cases of State v. Storm, 127 Mont. 414, 265 P.2d 971 and State v. Piveral, 127 Mont. 427, 265 P.2d 969, and cases following, are expressly overruled.
One reason for the rule of confrontation is to prevent ex parte charges by faceless informers. The constitutional guarantee seeks to assure that one accused of crime will at some point in time be afforded an opportunity to confront all witnesses who will testify in open court. Such guarantees are protected under section 95-1802, R.C.M.1947.
At the trial the county attorney was sworn as a witness and testified in detail establishing the statutory requirements for the admission of the testimony. This testimony was received at defendant’s trial without objection and defense counsel agreed to its use. Here a real effort was made to locate the witness, and when that failed proper foundation was laid by the state as to the search. The record shows that defendant was represented by counsel at the taking of the testimony and completely exercised his right of cross-examination.
Defendant next contends it was error for the court to give to the jury instruction No. 24 defining and explaining the elements of the crime. The instruction was given as follows:
“You are instructed that rape is an act of sexual intercourse accomplished with a female, not the wife of the perpetrator, under either of the following circumstances:
“(1) Where she resists but her resistance is overcome by violence or force.
“(2) Where she is prevented from resisting by threats of immediate and great bodily harm, accompanied by apparent power of execution, or by any intoxicating narcotic, or other anestetic (sic) substance, administered by or with the privity of the accused.
“The words ‘threat of immediate and great bodily harm, accompanied by apparent power of execution’ as used in these instructions can mean either oral threats or threats made by the conduct and behavior of the person charged with the crime of rape.
“The essential guilt of rape consists in the outrage to the person and feelings of the female. Any sexual penetration, however slight, is sufficient to complete the crime. Proof of emission is not necessary.
“Rape is punishable by imprisonment in the state prison for not less than two years, nor more than ninety-nine years.”
Paragraphs one and four are extracted directly from sections 94-4101 and 94-4104, R.C.M.1947, respectively and need no further comment. However, defendant contends that paragraphs two and three are not the law in Montana. With this ■contention we cannot agree. Paragraph three, with the ex ception of the last sentence is a verbatim recital of section 94-4103, R.C.M.1947. The last sentence i.e., that proof of emission is not necessary, is clearly the law. See People v. Edwards, 173 App.Div. 375, 159 N.Y.S. 410; 75 C.J.S. Rape § 10(c); 44 Am.Jur., Rape § 4. The only portion of the instruction which is not phrased in statutory terms is the second paragraph which, while not necessary to the instruction, represents a helpful explanation of the elements of threat required which may be evidenced either by oral statements or by conduct of the assailant. This Court has not ■ had the opportunity to specifically approve the language of paragraph two; however other jurisdictions have given effect to the statement “A threat may be expressed by acts or conduct as well as words.” People v. Winters, 163 Cal.App.2d 619, 329 P.2d 743, 745 (1958); People v. Harris, 108 Cal.App.2d 84, 238 P.2d 158 (1952); People v. Flores, 62 Cal.App.2d 700, 145 P.2d 318 (1944). We believe this to be a proper statement as to the law in Montana, and therefore find the instruction to be correct.
The last issue assigned for review is whether there was sufficient evidence to support the conviction. Whether prosecutrix offered resistance or consented to the intercourse is patently a jury question. State v. Whitmore, 94 Mont. 119, 21 P.2d 58. It has long been the law in this state that a rape conviction may be sustained by the uncorroborated testimony of the prosecutrix. State v. Moe, 68 Mont. 552, 219 P. 830. Further, this Court has frequently observed that disputed questions of fact and the credibility of witnesses will not be considered on appeal but that determination of such matters is within the province of the jury. As long as there is substantial evidence to support the verdict, it will not be’ disturbed on appeal. State v. Doe, 146 Mont. 501, 409 P.2d 439; State v. Lagge, 143 Mont. 289, 388 P.2d 792; State v. Pankow, 134 Mont. 519, 333 P.2d 1017. Here the testimony of the prosecu trix and the surrounding circumstances constitute substantial evidence to support the conviction.
For the foregoing reasons, the judgment of the district court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON, and MR. JUSTICES CASTLES, JOHN C. HARRISON and BONNER, concur.
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MR. JUSTICE MORRIS
delivered the opinion of the court.
On December 13, 1943, the county attorney of Lewis and Clark county filed a complaint, Cause No. 19366, in the district court of said county, alleging that gambling in violation of law had been carried on at various times specified therein at No. 20% North Main Street in the city of Helena, and it was further alleged that unless restrained by the court such gambling would be continued. Helen Wilson Hale, Kenneth Egan and Flayvale Perkins, also 'known as Fritzie Perkins, were named as defendants. Helen Wilson Hale appears to be the owner of the building, and Kenneth Egan is the lessee of the first story thereof, and it further appears that he is the offending party. The second story of the building is alleged to be a rooming house or hotel. An injunction was prayed for to restrain the defendants, their employees and agents, from removing any of the things used in the alleged gambling operations, and further that the defendants and their employees and agents, etc., be restrained from all such alleged illegal practices, and that the nuisance be abated and the premises not be occupied for one year, and that the gambling equipment and paraphernalia be taken and disposed of according to law, and prayer was made for such other relief as might be found to be mete and just in the premises. A copy of an affidavit made by one Ray Rankin, recounting his experiences and observations relative to the gambling carried on in the place, was attached to the complaint.
December 13, 1943, the temporary injunction as prayed for was granted by Judge Horsky of Department No. 1 of the First Judicial District. Pursuant to the provisions of section 8868, Revised Codes, an affidavit of disqualification was filed against Judge Horsky by Gene M. Robertson, as agent for the defendant Kenneth Egan. Judge Horsky thereupon made and entered an order transferring the case to Judge Padbury of Department No. 2 of the same court. December 14th Judge Padbury, on the application of defendant Kenneth Egan, made and entered an order dissolving the injunction theretofore issued by Judge Horsky and by the same document further ordered that the defendants show cause before his court at ten o’clock a. m., January 9, 1944, why they and their employees, agents, etc., should not be restrained and enjoined from permitting or maintaining a common nuisance in or upon the premises described and was thereafter absent from the state from December 16, 1943, until January 12, 1944. December 18, 1943, the county attorney of Lewis and Clark county filed a motion to annul, vacate and set aside Judge Padbury’s order dissolving the injunction and ordering the defendants to show Cause as mentioned above. It does not appear from the record that this motion has ever been passed upon, but it is alleged in the petition presently referred to whereby a writ of supervisory control was sought in this court that such order was not at any time either allowed or denied.
December 18, 1943, the Hon. Ernest T. Eaton, Acting Governor of the state of Montana, the Governor being absent from the state, issued an order directed to and requiring the Hon. Jeremiah J..Lynch, a judge of the Second Judicial District, to attend and “hold court in Department No. 2 of the First Judicial District of the State of Montana in and for the County of Lewis and Clark, beginning on the 28th day of December, 1943, and for such time thereafter as is necessary and required to dispose of and transact the judicial business of said court now pending and to arise in the future pertaining to said action until the final determination.” The “application of J. Miller Smith” mentioned in the beginning of the order made by the Acting Governor does not appear in the record, and we can surmise what it alleged only by what appears in the order of the Acting Governor.
December 28, 1943, the defendant Kenneth Egan, through his attorneys, filed objection to the assumption of jurisdiction by Judge Lynch of the action. On that date, Judge Lynch appeared, assumed the bench pursuant to the order of the Acting Governor and heard arguments on the objection to his assuming jurisdiction. The county attorney and his assistant and counsel for the defendants were present and took part in the proceedings. It appears that the court reconvened later the same day with the same officers and attendants that were present in the prior sitting, and after reciting the facts relative to the written objection, filed by the defendant Egan, Judge Lynch caused his conclusions in the premises to be entered on the minutes of the court as follows: “Whereupon after arguments by,counsel for the respective parties said matter was submitted to the court and later in open court it was held by the said Jeremiah J. Lynch, Judge of the District Court of the Second Judicial District of the State of Montana, in and for the County of Silver Bow, that he was without jurisdiction to proceed in the case, without the consent of the parties, and declined to request another District Judge of any other county than Lewis and Clark County to try this case or to come in to hear and determine any pending matter therein.”
January 21, 1944, the county attorney of Lewis and Clark county and the Attorney General of Montana filed their joint petition in this court praying for a writ of supervisory control directed to Judge Lynch requiring him to show cause why the minute entry made by him hereinabove mentioned should not be annulled and set aside, and that he make an order calling in some other district judge other than a judge of the First Judicial District to hear and determine the pending action involved. The petition for the writ of supervisory control was presented to this court sitting for the purpose, and after the grounds upon which it was based were presented to us orally, the parties were allowed until January 24th to submit briefs. January 25th the writ was issued, returnable February 21st. This date was later changed to February 24th. The writ was served and returned and we heard oral arguments February 24th, and additional time was allowed both parties in which to prepare and submit further authorities, and it was announced at the close of the oral arguments that the case would be deemed submitted as of March 3rd.
It is alleged in the petition of the relators that the county attorney of Lewis and Clark county had filed an affidavit disqualifying Judge Padbury, and it appears to be understood that such is the fact, but the record before us certified by the clerk of the court of Lewis and Clark county does not show such filing. It is not questioned by any party in interest and it will be assumed that it was filed. February 24th, at the time of the oral arguments, counsel for defendants filed a motion to quash the alternative writ of supervisory control, and on the same date Judge Lynch’s answer and return on the order to show cause was filed. In his answer Judge Lynch stated that the minutes as recorded by the clerk of the district court of Lewis and Clark county are not a “verbatim transcription” of the remarks made by Judge Lynch at the time of his ruling declining to assume jurisdiction, but alleged that he then and there stated that “Section 8823, R. C. M. 1935, appeared to be in conflict with Section 12, Article VIII of the Constitution of Montana, as construed in the decisions of the Supreme Court of Montana in the Weston Case, In re Weston, 28 Mont. 207, 72 Pac. 512, and Clancy Case, State ex rel. Anaconda Copper Min. Co. v. Clancy, District Court, 30 Mont. 529, 77 Pac. 312, and the Driscoll Case, State v. Driscoll, 101 Mont. 348, 54 Pac. (2d) 571, and that accordingly the Governor of the State was without authority to call in said respondent to assume jurisdiction in said action; * *
Judge Lynch in his general denial of allegations of Paragraph VI of the petition, which allegation we do not deem it essential to repeat here, adds to his denial the following statement:
“ (a) That on the 14th day of December, 1943, and at all of the times subsequent thereto until the present time, the Honorable A. J. Horsky has been within the First Judicial District wherein he is one of the duly elected, qualified and acting district judges; that at all of the times herein mentioned, except during the period from December 16, 1943, to January 12, 1944, the Honorable George W. Padbury, Jr., has been and now is likewise present in the First Judicial District wherein he is one of the duly elected, qualified and acting district judges.
“(b) That the Honorable George W. Padbury, Jr., the district judge in whose department said action is pending can call in a judge of another district to assume jurisdiction in said action by making an order calling in such district judge, and it is alleged upon information and belief that he will have no difficulty in securing a judge to try said cause, or in his absence or inability to act, the Honorable A. J. Horsky can call in another judge to assume jurisdiction in said action; that this respondent has not been within the First Judicial District since December 28, 1943.”
In answer to Paragraph VIII of the petition Judge Lynch has this to say:
“Denies the allegations of Paragraph VIII thereof, and upon the contrary alleges the fact to be that the power to call in a judge from another judicial district of the State of Montana at all times herein mentioned has been vested in Honorable George W. Padbury, except during his absence as above set forth, during which time said power was vested in Honorable A. J. Horsky.”
The relators contend that the question involved in this controversy is as to the constitutionality of section 8823, Revised Codes. That section provides:
“If for any cause a district court is not or cannot be held in any county by the judge or judges thereof, or by a district judge requested by such judge or judges to hold such court, or if the business of the court in any county is not or cannot be dispatched with reasonable promptness, the governor may, upon application of any interested person, by an order in writing, require some district judge to hold court in said county for such time as may be specified in the order.”
We think the section is valid. We can conceive of a situation wherein a judicial district might be left without a judge and the only means of providing one would be by the exercise of the power vested in the Governor by that section. But whether the section be invalid or not is immaterial here for the reason that there was in the First Judicial District a judge at all times in whom section 8868, Revised Codes, vested the power to call in another judge when Judge Lynch declined to assume jurisdiction. We think calling Judge Lynch in was improper in the circumstances for the reason that resort should not be had to section 8823 while the power granted by section 8868 has not been exhausted.
The rules of court of the First Judicial District legally adopted and in operation were given extended attention in both oral argument and in briefs of counsel. Nos. 3 and 4 of such rules provide in part that either of the two judges may in the absence of the other perform the duties of the one absent, and at no time nor at any stage of the controversy that is before us was the First Judicial District without at least one judge, and upon Judge Lynch’s declining to assume jurisdiction application should have been made to Judge Padbury after his return and could have been made to Judge Horsky before Judge Padbury’s return, to call in another district judge.
Actions involving controversies similar to the case at bar were before this court in Rowan v. Gazette Printing Co., 69 Mont. 170, 220 Pac. 1104, and Pincus v. Davis, 95 Mont. 375, 26 Pac. (2d) 986. The former case arose in the Thirteenth Judicial District with Judge Spencer presiding, Judge Stong being the other judge in the district at that time. We quote a part of the opinion wherein provisions of the Constitution, the statutes of Montana and decisions of this court are cited that throw some light on the controversy before us. It was there said [69 Mont. 170, 220 Pac. 1106]:
“ (2) If one district judge invites another to hold court for him, and the invitation is accepted, the invited judge, when he appears, and while he presides, has all the authority of the local judge. Section 9098, Rev. Codes 1921; Farleigh v. Kelly, 24 Mont. 369, 62 Pac. 495, 685.
“(3) Speaking generally, when the invited judge leaves the district in which he has presided he has no authority at cham bers in his own district to do anything affecting the business in the other district (State ex rel. Mannix v. District Court, 51 Mont. 310, 152 Pac. 753), except upon stipulation of the parties interested (Eustance v. Francis, 52 Mont. 295, 157 Pac. 573).
“(4) When a judge is disqualified for imputed bias he is without authority to act further in the action in which he is disqualified, except to arrange the calendar, regulate the order of business, call in another judge, or transfer the cause, if a transfer is proper. (See. 8868.)
“ (5) If there be more than one judge in the district, the one first disqualified in a given ease must call in another judge of the same district. (Sec. 8868.)
“(6) If all of the judges of a district are disqualified in a given case, a judge of another district must be called in to preside in the action. (Sec. 8868.)
“When Judge Spencer was first disqualified in this case he should have called upon Judge Stong to preside in the action; but the record fails to disclose that any such order was made. It fails likewise to show that any rules have been adopted in the Thirteenth judicial district for the apportionment of the business in the district between the two judges. In the absence of such rules, each of the judges had all the power and authority concerning any business in the district that is conferred upon any judge in this state. Until April 25, when he was disqualified, Judge Stong had complete authority to do anything in this case which ought to have been done, including the settlement of the pleadings and the trial of the case (State ex rel. Little v. District Court, 49 Mont. 168, 141 Pac. 151), and likewise he had authority to invite Judge Miller to do the same things or any of them. When Judge Stong was disqualified on April 25 he was without authority thereafter to act in this case, except to arrange the calendar, regulate the order of business, or call in another judge, and, since both of the judges were then disqualified, Judge Stong could call in any outside judge to whom he saw fit to extend an invitation.
“It is unnecessary to decide whether Judge Spencer had authority on May 3 to call in Judge Jackson. The fact is that Jackson appeared and presided in court when this cause was tried and judgment rendered and entered. He then left the district and returned to his home in Butte. When the motion to set aside the judgment came on for hearing on May 12, neither of the resident judges was qualified to hear it. On May 11, Judge Stong invited Judge Miller to preside on May 12, and his authority to do so cannot be questioned. It is conferred expressly by section 8868, above. When Judge Miller responded to Judge Stong’s invitation and presided in the district court of Carbon county on May 12, he was clothed with all the authority to act in this case Avhich Judge Stong would have had if he had not been disqualified.
“It is idle for plaintiff to contend that by virtue of the order of May 3 Judge Jackson was given exclusive authority to hear and determine all matters involved in this controversy. If that contention should be granted it would lead to an absurd situation which the law does not contemplate and would not tolerate. ’ ’
Coming now to our final conclusions as to this controversy, the various actions and things done since Judge Padbury was disqualified are now immaterial so far as the determination of the action is concerned, and Judge Padbury has returned to the state and to his duties as the regularly elected and qualified judge of Department No. 2 of the First Judicial District, and now has the power, and the statute imposes upon him the duty, to call in another district judge to hear the pending case. While Judge Padbury was absent from the state the power to call in another judge had reverted to Judge Horsky, but is now in Judge Padbury.
The contention that when a district judge is disqualified pursuant to section 8868 and a judge called declines to assume jurisdiction it is nevertheless the duty of the judge called to call another district judge to try the case is without merit. Judge Padbury may “call one trial judge after another” until he finally secures the services of one who will preside at the trial of the action involved. (Curry v. McCaffery, 47 Mont. 191, 131 Pac. 673, and eases cited.)
Rehearing denied September 7, 1944.
The motion to quash the alternative writ of supervisory control is granted.
Mr. Chief Justice Johnson and Associate Justices Anderson, Adair and Erickson concur.
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HONORABLE H. B. HOFFMAN, District Judge,
sitting in place of MR. JUSTICE BOTTOMLY, delivered the Opinion of the Court.
This is an appeal by defendants from a judgment of the district court of the eighteenth judicial district entered in favor of the plaintiff on a complaint to recover on two causes of action, one for personal injuries, the other for damages to the truck which plaintiff was driving southward on a public highway one mile north of Belgrade, in Gallatin County, where a passenger train proceeding southeasterly crossed the highway and collided with the truck when it started to cross the railway track.
The respondent and his witnesses produced evidence of appellants’ failure of the engineer of the diesel engine drawing the train to blow a whistle or ring a bell for the road crossing. The usual “railroad crossing” signs had been erected and were in place. It is conceded that this evidence of negligence on the part of appellants is sufficient to predicate actionable negligence against the appellants. Defendant, Henry Morris, was the engineer.
The physical facts are quite easily illustrated. The collision occurred on Dry Creek Road one mile north of Belgrade. The road runs due north and south, entering Belgrade from the north. Let the point of collision on the highway be marked A. The railway track crosses the highway, for practical purposes, on a straight line running northwesterly and southeasterly through point A. at an angle of thirty or thirty-six degrees between the railroad and Dry Creek Road. Slightly less than one mile north of A, Dry Creek Road meets another public highway running straight east and west. Let the point of intersection here be marked B. Respondent drove his empty, 1952, 1% ton Gr.M.C. truck, equipped with a stock rack, westerly to point B, made a left turn and started south on Dry Creek Road, then graveled, level, and dry all the way. Weather and visibility was clear. Admittedly, he maintained fairly constant speed of twenty-five miles an hour to A, the point of collision.
The highway running east and west intersects and crosses the railway west of B at point C. We then have the enclosed right triangle, the two highways, AB and BC, forming the two legs and the railway, AC, the hypotenuse. The railway rises southeasterly at a grade of one-tenth of one percent. The railway tracks are built at a fairly constant elevation about the abutting land between A and C — at point A, five feet. The field enclosed within the triangle, A B C, is open, with absolutely no obstruction to vision and full view of the railway from any given point on Dry Creek Road between A and B, except only, that one witness suggested, but offered no positive testimony, that there may have been a hay stack somewhere between Dry Creek Road, A to B, and the railway, A to C. The triangle, ABC, is a level plane rising slightly as it approaches A. Nothing obstructs the plain and full view of the railway tracks from any point between A and B. It is to be noted that the railway tracks from A to C were elevated approximately five feet above the land east of such tracks. The passenger train was in plain full view at any point between A and C from any point on AB. Respondent’s witness, John S. Milesnick, who has lived four and one-half miles north of Belgrade for twenty-two years, testified the triangle ABC was “a great big wide open field”.
Ales H. Cloyd drove a dark DeSoto northward on Dry Creek Road and crossed the railway tracks shortly before the accident. Respondent did not remember passing the Cloyd DeSoto, which he must have passed on Dry Creek Road very near to and north of the railway track. Cloyd testified as follows:
“ Q. I presume, Mr. Cloyd, that you were driving on your own right-hand side of the road as you crossed the tracks? A. Yes, sir.
“Q. And I also presume that you were proceeding at a reasonable rate of speed? A. Yes, sir.
“Q. About how fast, if you can remember, were you traveling? A. I can’t remember.
“Q. Do you remember whether you were driving fast? A. Oh, probably 40 miles an hour.
“Q. That road there is wide enough for two cars to pass? A. Plenty of room.
“Q. Easy isn’t it? A. Yes, sir.
‘ ‘ Q. Did you make plenty of room on the other side for cars to pass you going in the opposite direction? A. I always did.
“Q. Incidentally do you happen to remember whether you may have met any other traffic besides the truck at or near the time of this accident? A. I met one truck going the opposite direction to what I was.
‘ ‘ Q. And I think that’s the truck that was involved in this collision, wasn’t it? A. I think so, sir.
‘ ‘ Q. Did you look up the track to see if a train was’ coming before you crossed? A. I looked down the track.
“Q. Did you look left or right? A. How was that?
1 ‘ Q. Did you look left or right ? A. I guess that would be my left.
“Q. And there was a train coming towards the crossing was there not? A. Yes, sir.
“Q. And you looked at it and felt that you had time to get' over didn’t you? A. Yes, sir.
“Q. And did yon make it over in plenty of time to be safely ont of the way of that train? A. Yes; well, I thought I was.”
Henry Carpenter, with his wife, Iva Evelyn Carpenter, and her mother, followed the respondent from point B to within a short distance from A when the accident occurred. They followed at a distance of two hundred feet. Mr. Carpenter was driving, but did not testify. His wife, respondent’s witness, testified as follows:
‘ ‘ Q. And who besides your husband and yourself was in the car? A. My mother, Mrs. Thompson.
‘‘Q. And — all right. You followed Mr. Monforton as he proceeded south? A. Yes.
“ Q. And would you know approximately the distance that you were behind his truck as you followed him to the south? A. I would say 200 feet approximately.
”Q. And, now Mrs. Carpenter, did you later become aware there was a train on the track? A. Well, just before we stopped at the crossing we saw it.
”Q. And what kind of a train was it on the track? A. Passenger.
“Q. And did — who in your car first observed the train? A. I believe it was myself.
”Q. Now you say it was just before you stopped at the crossing. Did you stop near the crossing that day? A. Well, I imagine we were about 200 feet from the crossing anyway.
‘‘Q. That your husband stopped the car? A. Yes.
”Q. And you had been traveling south along this Dry Creek road and •— A. (Interposing) Yes.
”Q. (Continuing) — and was just about that point when you first observed the passenger train, is that correct? A. Yes.
‘ ‘ Q. How did you happen to stop your car there, if you know? A. Well, we saw the train and then stopped.
“Q. And what did you observe about Mr. Monforton’s truck at the time? A. Well, he wasn’t driving very fast, and we thought he might stop, but he failed to do so.
“Q. And then did you see his truck get hit ? A. We did. * * #
“Q. Did you, in your own car, try to do anything to attract Mr. Monforton’s attention to the train 1 A. No.
“Q. Did you consider attempting to do such? A. Yes, we thought of honking but we was afraid it would attract his attention back instead of forward.
“Q. Could you tell from the rear view mirror, either from Mr. Monforton’s rear view mirror or looking through his window, what he was doing as he approached the track ? A. No.
“Q. In other words, you didn’t know whether he -was looking or not? A. No. * * *
‘ ‘ Q. Did you actually discuss with your husband the matter of whether or not you should blow the horn to attract his attention? A. I think I mentioned it but I don’t think my husband answered. He said afterwards he was afraid it would attract his attention back.
‘ ‘ Q. About how far do you think Mr. Monforton was, if you can give us an estimate, when you mentioned that to your husband? A. Well, he was very close to the track; I couldn’t tell how far.
“Q. Well, is it fair to put it this way then, that you didn’t consider that there was any danger until Mr. Monforton was very close to the track? A. True.
“Q. However, you had watched — you had seen the train approaching for some little distance and just felt that Mr. Monforton would naturally see it and stop, is that right? A. Yes.
“Q. And you yourself saw the train? A. Yes.
“Q. Were you driving a sedan? A. Yes. * * *
“Q. Isn’t it a fact, Mrs. Carpenter, that you were so totally absorbed with what you saw going on before you that you pretty much were unmindful of everything else going on except trying to figure whether Mr. Monforton would make it or not? A. To a certain extent.
££Q. You were terribly concerned about it weren’t you?
A. Sure.”
Wallace Cox, who had resided fifteen miles north of Belgrade for forty years, drove into Belgrade just before the accident. As he crossed the railway track he looked down the track and saw the train at a distance between one and two miles away. He testified:
“Q. Now when you are driving an unloaded truck in which you have no visibility do you want this court and jury to believe that you didn’t consider it necessary to look up the track to see how far you could see a train — look for a train? A. I always leaned forward and looked as far as my visibility would limit me in a truck.
££Q. In other words, you did take the precaution, Mr. Cox, in all circumstances, didn’t you, that I consider any prudent drive should, of leaning forward and peering out your right window to see just as far as you could see, isn’t that right? A. That is correct; your vision is limited.
‘ ‘ Q. But you did make a practice of looking up the track by leaning forward when you were in your truck of limited visibility? A. You have got to respect a train. * * *
i£A. The angle of the track agoing you might say, southeast, and the road going south, you are almost going' along, you can see, your vision is not restricted, you can see that train.
££Q. If it’s out to the side of you? A. Yes.
“Q. Now if you could ■ — ■ didn’t see a train out to the side of you and you knew you were traveling faster than a train would be traveling on that track would you turn and lean clear forward and look back down the track? * * *
A. Yes.”
Later he testified as to crossing the tracks: “I always look down the track before I came to the crossing; I didn’t check it as close empty.”
Respondent testified that he reached B ahead of Carpenter, turned south and Carpenter followed him about two hundred feet behind. At point B he looked; the whole track was in front of him, “that is, across that triangle there.” He did not see a train. He further testified:
“Q. Now as you proceeded south were you watching the road ahead of you? A. I was.
“Q. What effort did you make to look for trains? A. I glanced over occasionally to the right.
“Q. When was the last time you glanced over to the right? If you remember. A. Well, I can’t say exactly it was well up the road.
“Q. When you say ‘well up the road’ do you mean near the crossing or near the comer? A. Oh, nearer the crossing; I wouldn’t be able to say just when it was.
“ Q. When you looked to the right you didn’t change your body position in the cab of the truck any, that is, you simply turned your head and looked to the right? A. Yes. No, I didn’t move over in the seat.
“Q. You didn’t lean forward either to get a little better view? A. Couldn’t lean very much forward with the steering wheel in the truck in front of me.
‘ ‘ Q. When you were proceeding along that road you knew that the crossing came in, or the track came in at an angle or a similar angle to that shown on this plat, did you not? A. Yes, I did.
“Q. Was the window of the truck rolled up or down do you remember? A. No, they were closed.
“Q. Did you at any time stop before you reached the crossing for the purpose of looking for a train? A. I can’t remember stopping.
“Q. You do have a recollection of your proceeding along the road, I think you said, up until you were within a hundred feet? A. Something like that, yes.
“Q. "Was there any traffic on the road besides the Carpenter car that you remember? A. I can’t remember anyone else.
‘1Q. There was presumably a red car that passed over the crossing going in the opposite direction shortly before the accident you have been told that since, haven’t you? A. I have been told there was a car there, yes.
“Q. You have no recollection of that car there? A. Not at all.”
The crux of this case is whether plaintiff was guilty of contributory negligence, which was interposed as a defense. It is the opinion of the court that the whole record resolves the issue in favor of the appellants; that the record discloses that the respondent failed to exercise that degree of care which an ordinary, reasonable and prudent man, under the circumstances of this case, would have exercised for his own safety, and that his lack of due care was a direct and proximate cause of his injury and damage. He neither duly looked, listened, nor took any precaution for his own safety. Had he used his senses, he could not have failed to see the approaching train. There was no obstruction whatever to interfere with respondent’s observation or power of observation. The same may be said concerning his hearing. There is evidence that this line of railway track was used almost exclusively for freight trains. The train involved in this accident was a passenger train approximately one thousand feet in length drawn by a three-unit diesel engine. While there is evidence that this train moved more quietly than the freight trains that usually passed over this line, there is no evidence that the passenger train would not have been heard in time for safety, had the plaintiff given attentive ears when he approached the railroad crossing where the usual “Railroad crossing” signs had been erected and were in place. The grade leading up to the railroad to cross it was between one hundred and one hundred and twenty-live feet long, which with the railroad itself in plain view for nearly a mile, were sufficient warnings to bring the sense of hearing of a reasonably prudent man into play.
The respondent testified that his brakes were very good, that the windows were clear that he was not traveling faster than twenty-five miles per hour. Sergeant William C. Benson qualified as an expert witness and testified that the actual braking distance of plaintiff’s truck, going twenty-five miles per hour on that highway would be forty feet; the approximate stopping-distance would have been not to exceed ninety-two feet. Respondent thought the truck could have been stopped somewhere between sixty and one hundred feet. Considering the one hundred to one hundred twenty-five feet grade from the road level up to the track where the collision occurred the actual stopping distance was quite certainly less than that.
Section 72-164, R.C.M. 1947, among other things provides: “* * * provided, however, all persons driving motor vehicles * * * where the view is obscure, or when a moving train is within sight or hearing, shall bring said vehicle to a full stop not less than ten nor more than one hundred feet from where said highway intersects railroad tracks”.
Hunter v. Montana Central Ry., 1899, 22 Mont. 525, 57 P. 140, lays down principles of law, ever since followed in Montana, which are impelling in our decision. We followed that decision twenty-five years later in West v. Davis, 71 Mont. 31, 227 P. 41, 45, wherein we observed that the decisions of this court are wholly adequate upon which to base our opinions on the precise issue of contributory negligence. After reviewing prior decisions, this court said: “It is apparent, no matter what the plaintiff himself testified, that the train, at the time when the plaintiff was in place of perfect safety, was at a point where the plaintiff could not have failed to observe and hear it if he had looked or listened. We cannot subscribe to the proposition, because a man testifies that he did look and did not see an object which manifestly must have been at a certain point at a given time within his plain view, where he admits that his sight is good and nothing to interfere with his vision, that thereby any question is presented for the jury when the ordinary use of his senses must necessarily have given him warning of the approach of the on-coming train. These facts, in our opinion, were demonstrated beyond any question upon the trial of this case by the testimony offered by the respondent himself and his witnesses; and we think, for the reasons above stated, and in view of the previous decisions of this court, that the trial court erred in refusing to grant the nonsuit requested by the defendant at the close of plaintiff’s case, and also erred in refusing to direct a verdict for defendant, inasmuch as the defendant’s case in nowise aided the ease of the plaintiff.”
The foregoing pronouncement of our law is solidly buttressed upon the following decisions that had then been rendered: Hunter v. Montana Central Ry., 22 Mont. 525, 57 P. 140; Meehan v. Great Northern Ry., 43 Mont. 72, 114 P. 781; George v. Northern Pacific Ry., 59 Mont. 162, 196 P. 869; Normandin v. Payne, 65 Mont. 543, 212 P. 285; Keith v. Great Northern Ry., 60 Mont. 505, 199 P. 718; and Roberts v. Chicago, M. & St. P. Ry., 67 Mont. 472, 216 P. 332. Our recent decisions are fully in accord: (Rau v. Northern Pacific Ry., 87 Mont. 521, 289 P. 580; Grant v. Chicago, M. & St. P. Ry., 78 Mont. 97, 252 P. 382; Sullivan v. Northern Pacific Ry., 109 Mont. 93, 94 P.2d 651; Incret v. Chicago, M. & St. P. & P. Ry., 107 Mont. 394, 87 P.2d 12; Great Northern Ry. Co. v. Taulbee, 9 Cir., 1937, 92 F.2d 20, certiorari denied 302 U.S. 766, 58 S.Ct. 476, 82 L.Ed. 595.
The respondent emphasized that the Low Line railway tracks upon which the collision occurred was usually used for slow moving freight trains whereas the train involved in this accident was a fast moving passenger train which introduced the element of surprise, or unexpectedness. William W. Walters, assistant superintendent of the Rocky Mountain Division, testi fiecl from the railroad records that between November 4, 1946, and March 23, 1956, sixteen passenger trains went over this Low Line Crossing. Respondent’s witness, Iva B. Carpenter, whose qualifications are doubtful, testified the train was going forty to forty-five miles per hour. John S. Milesnick testified for respondent that the speed of freight trains over the Low Line was fifteen to twenty miles per hour. The train dispatcher ’s records showed that the average speed of the freight trains on the Low Line March 23, 1956, the day of the accident, was thirty and one-half miles per hour; on March 22, 1956, the average was fractionally over that. All freight trains had diesel engines beginning in 1956. The record does not disclose whether witness Milesnick’s testimony had reference to diesel drawn freight or coal burning engines. Mr. Walters also produced the tape from the speedometer on the engine which drew the train involved and testified that it showed a speed of forty to forty-four miles in the mile and one-half immediately before the collision, and a speed of forty miles when the brakes were applied. He testified that there was very little difference between the speed of freight and passenger trains on the Low Line. Henry Morris, the engineer of the diesel engine when the accident occurred, said he was traveling thirty-five to forty miles per hour as he came to the crossing.
Respondent, who did not see the passenger train before the accident, asserts that it was the excessive speed of the train over the usual freight trains that caused the accident, but could not, of course, testify as to the speed of the train. His own speed between the points A and B, nearly a mile, was twenty-five miles per hour from which it would appear that even the usual freight train could have overtaken him. He also relies upon faint evidence that- the passenger train ran more quietly than freight trains raising an inference that had it been the usual freight train the noise would have warned him. Respondent thereby attempts to substitute an alleged custom on appellants’ part for the exercise of due care on respondent’s part at a place of known clanger. The better rule, stated in Di Giendemonica v. Pennsylvania-Reading Seashore Lines, 123 N.J.L. 296, 8 A.2d 342, 343, is that a railroad crossing is, as a matter of law, a place of known danger and respondent was bound by law to recognize it as such. The Supreme Court of New Jersey said:
“Stated succinctly, plaintiff’s contention is, that where defendant Eailroad Compaq has, through long practice, known to the members of the general public, of whom plaintiff’s intestate was one, led users of its crossing to anticipate the operation of defendant’s trains at a speed, at that point, not in excess of a certain rate per hour, the increase in that speed or rate of operation of defendant’s trains over said crossing, without notice to the public of the change in speed, or adoption of safety precautions by defendant company, constitutes a situation from which negligence may be inferred. * * *
“As the learned trial court said in striking the complaint: ‘If a railroad company can be charged with negligence because it caused a train to be operated faster than the usual or customary speed, why can’t it by the same token be charged with negligence because a train passes a particular crossing or street earlier or later than it was customary for the train to go by; and why could it not be charged with negligence for increasing train service if the accident happened before it became the custom for the railroad company to operate the additional train or trains? If such were the law, railroads would be liable in damages for a violation of a custom rather than a violation of a duty imposed by statute or other lawful authority.’
“What the plaintiff is really trying to do is to substitute an alleged custom on the defendant’s part for the exercise of due care at a place of known danger on the part of the plaintiff’s intestate. Custom or no custom, a railroad crossing as a matter of law is a place of known danger and plaintiff’s intestate was bound by law to recognize it as such.”
The following eases, not all precisely in point, are in accord: Larrabee v. Western Pac. Ry., 173 Cal. 743, 161 P. 750; Kinghorn v. Pennsylvania Ry., 2 Cir., 1931, 47 F.2d 588; Holt v. Illinois Cent. Ry., 318 Ill.App. 436, 48 N.E.2d 446; Baltimore & Ohio Ry. Co. v. State ex rel. Black, 107 Md. 642, 69 A. 439, 72 A. 340; Byerley v. Northern Pacific Ry., 11 Wash.2d 604, 120 P.2d 453; Nuttall v. Denver & R. G. W. R., 98 Utah 383, 99 P.2d 15; Sohl v. Chicago, R. I. & P. Ry., 183 Iowa 616, 167 N.W. 529.
The court, over appellants’ objection, gave Instruction No. 13, which was as follows:
"You are instructed that if you find from the evidence that the Northern Pacific Bailway Company used the railroad track involved in this action so exclusively for freight trains travel-ling upgrade at a slow rate of speed as to cause such use of said track to become an established custom and practice of the defendant; and that at the time of the collision involved in this action, plaintiff knew this custom and relied thereon during the time that he approached and crossed said crossing; and if you further find that„ at the time of the collision involved in this action the defendant railway company, contrary to such established use and custom, caused a fast-moving passenger train to be run upon and across said crossing which struck the motor vehicle driven by the plaintiff; then, in that event, you may consider these facts, together with the other evidence introduced in this ease, in determining whether the plaintiff and the defendants used the care required of them, as such care is defined in these instructions, at said crossing at the time of the collision.” Not only is this instruction error, but it is not in consonance with court’s Instruction No. 24, which was:
"The plaintiff, while driving his truck toward the crossing, was not entitled to assume that the defendants would operate their trains at any particular time or speed.”
Appellants’ objection to court’s Instruction No. 13 was that respondent had no right to make any assumption of any speed whatsoever. On the particular facts of this case that objection was good.
Respondent labored to exculpate himself from blame for his failure to exercise due care on two grounds, considered separately above — the first — that neither bells rang nor whistle blew for this crossing. The second — that customarily appellants had used this Low Line for slow-moving freight trains whereas on the day of the accident respondent was caught by surprise by a fast-moving passenger train. Appellants concede that the evidence as to the first violation of duty, failure to whistle or to ring the bell, is sufficient to warrant the jury in finding appellants negligent. On the second, appellants concede nothing. We find authorities overwhelmingly against respondent on the first, and against respondent on the second. But, somehow not quite clear, respondent argued that the two together brought his case within the following authorities, which he cited: Hendrickson v. Union Pac. Ry., 17 Wash.2d 548, 136 P.2d 438, 161 A.L.R. 96; Broberg v. Northern Pacific Ry., 120 Mont. 280, 182 P.2d 851; Dimich v. Northern Pacific Ry., 136 Mont. 485, 348 P.2d 786; Farrell v. Erie Ry., 2 Cir., 1905, 138 F. 28; Morris v. Boston & M. R. R., 85 N.H. 265, 160 A. 52; Cox’s Adm’r v. Cincinnati, N. O. & T. P. Ry., 238 Ky. 312, 37 S.W.2d 859; Bradley v. Ohio River & C. Ry., 126 N.C. 735, 36 S.E. 181; Ohrmann v. Chicago & N. W. Ry., 223 Minn. 580, 27 N.W.2d 806; Wolf v. New York, C. & St. L. R. R., 347 Mo. 622, 148 S.W.2d 1032; Los Angeles & S. L. R. R. v. Umbaugh, 61 Nev. 214, 123 P.2d 224; Case v. Northern Pacific Terminal, 176 Or. 643, 160 P.2d 313; Missouri-Kansas-Texas Ry. Co. v. Wardlow, 10 Cir., 1959, 262 F.2d 681. These eases are not in point nor can any of them be said to be fairly analogous. Each case involves a standing train on a crossing, dark or foggy night, obscure crossing, extra-hazardous crossing, failure to ring bell or blow whistle, excessive speed (some times going through a city), or some automobile passenger who could hardly be held answerable for negligence. Most of the cases do not involve contributory negligence as an issue. In the Broberg case, supra, plaintiff was a passenger in a car driven by Mrs. MeFarren who ran into a standing gondola, dark in color, on a cloudy and very dark night. The issue was the negligence of the defendant. In the Umbaugh case, supra, the mother of an adopted daughter killed on a railroad crossing-in a ear driven by her adopting father brought the suit.
Missouri-Kansas-Texas Ry. v. Wardlow, supra, is probably respondent’s most favorable case. There was evidence that a passenger train, using- a track usually used by freight trains only, entered the crossing where the accident occurred on Main Street in Sand Springs, Oklahoma, at a speed between forty-eight and seventy miles per hour when the city ordinance limited the speed of trains within fifteen miles per hour. Plaintiff approached the crossing- going twenty miles per hour, did not expect a train, and “At a distance of 55 to 60 feet north of the tracks, plaintiff looked to the right and did not see or hear the on-coming train. At this point the track to the west could be seen for about 125 feet. He then looked to the east, and when he turned his attention back to the street, ‘the train came roaring through’ and he was unable to prevent the collision.” He ran into the diesel engine. The court affirmed judgment on the verdict for plaintiff, holding that defendant’s negligence and plaintiff’s contributory negligence were for the jury.
Careful analysis, of the cases cited, does not disclose reason or authority to disturb our decision. Further examination of them could only unduly lengthen this opinion.
■ In fairness to respondent, we have carefully examined his contention that the fact that Alex H. Cloyd, going north, crossed the track and passed respondent, of necessity, not far north of the railroad track, should exculpate plaintiff in that his attention was thereby diverted. He leans heavily upon Walters v. Chicago, Milwaukee & Puget Sound Ry., 47 Mont. 501, 133 P. 357, 358, 46 L.R.A.,N.S., 702, where plaintiff attempted to drive his automobile over a railway crossing situated in a cut eight to twelve feet deep and was hit by a train running from forty-five to fifty-five miles an hour. Vision was restricted. The testimony tended to show that plaintiff had both looked and listened. He did not stop-. The accident happened July 1910. The case was decided June 1913. Section 72-164 of our Revised Code was enacted 1919. The court refused to follow the rule to “stop, look, and listen”. In the instant case, respondent did not even see the Cloyd car — he so testified. Our case is further distinguishable in the physical environment surrounding the point where the accident happened. Walters did look and listen. He did not discover the train’s approach. He did not try to use, as an excuse, that his attention was diverted by the Canty car as the respondent does, in the instant case, argue and insist that his attention was diverted by the Cloyd car that he testified he did not see.
Respondent also cites Walsh v. Butte, Anaconda, etc., Ry., 109 Mont. 456, 97 P.2d 325, where the administratrix sued for death of an automobile driver who drove into a moving train in the nighttime when the view was obstructed by buildings and structures and the night was dark and foggy, the train was painted black, and the crossing gates were up, inviting the deceased to proceed. The cases relied upon by respondent are neither authoritative, persuasive, nor applicable in this case.
Respondent argues that he is entitled to go to the jury on the presumption that a person exercises ordinary care for his own safety. This principle is codified in section 93-1301-7, subd. 4, R.C.M., which reads:
“All other presumptions are satisfactory, if uncontradicted. They are denominated disputable presumptions, • and may be controverted by other evidence. The following are of that kind: * * *
“4. That a person takes ordinary care of liis own concerns. ’ ’
To sustain his position, respondent cites Baltimore & Potomac R. R. Co. v. Landrigan, 191 U.S. 461, 24 S.Ct. 137, 48 L.Ed. 262; Choctaw, O. & G. Rd. Co. v. Baskins, 78 Ark. 355, 93 S.W. 757; and Fulton v. Chouteau County Farmers’ Co., 98 Mont. 48, 37 P.2d 1025. In the first two cases, there was an absence of evidence whether the plaintiff (or plaintiff’s deceased) stopped, looked and listened in the Landigran case or looked in the Baskins case, before attempting to go over the tracks at railway crossings. In both cases, the presumption of due care on the part of the injured persons rested upon a complete lack of any evidence to the contrary.
In the Fulton case, supra, language in Brown v. Cent. Pac. Ry., 2 Cal.Unrep. 730, 12 P. 512, is construed in a manner that might give little comfort to respondent. But the rule of . law is stated in the Fulton case, supra, 98 Mont, at page 68, 37 P.2d at page 1031, as follows:
‘ ‘ Contributory negligence is a question of law only when the evidence is of such a character that it will support no other legitimate inference, and even where the facts are undisupted, if reasonable minds might draw different conclusions upon the question and from the evidence, the question is one for the jury.”
In Meehan v. Great Northern Ry., 43 Mont. 72, 114 P. 781, 783, this court said, quoting Harrington v. Butte, etc., Ry., 37 Mont. 169, 95 P. 8, 16 L.R.A.,N.S., 395: “‘When the plaintiff’s own case presents evidence which, if unexplained, would make out prima facie contributory negligence on his part, there must be further evidence exculpating him, or he cannot recover.’ ”
This rule has been often applied. Roberts v. Chicago, M. & St. P. Ry., 67 Mont. 472, 216 P. 332; Rau v. Northern Pac. Ry., 87 Mont. 521, 289 P. 580; Holland v. Pence Automobile Co., 72 Mont. 500, 234 P. 284; and many other cases. In the Roberts case, this court adopted the following language, in 67 Mont, at page 478, 216 P. at page 334: “Plaintiff insists that under the rules as stated, since the testimony of decedent cannot be obtained, he was entitled to have the case go to the jury for the reason that ‘there was no positive evidence tending to establish or prove that the deceased was not exercising ordinary care and prudence at the time of the collision,’ and cites subdivision 4, section 10606, Revised Codes of 1921 [now R.C.M.1947, § 93-1301-7], which provides that there is a disputable presumption ‘that a person takes ordinary care of his own concerns.’ In addition to this section, we are cited a number of authorities which deal with the question. Among these is 17 C.J. 1304. The rule there announced bears out the statement of counsel, but there is added the qualification that ‘this presumption does not apply where the surrounding facts and circumstances show to the contrary.’ ”
20 Am.Jur., Evidence, § 158, p. 163, correctly sums up the matter as follows: “Where facts appear, presumptions recede. Thus, the necessity for resorting to presumptions disappears where there is direct and positive evidence upon the matter in issue.”
The motion for a directed verdict should have been granted and judgment entered for appellants. We need not decide all issues raised. It would unnecessarily extend this decision, and could in no way alter our judgment.
The dissenting opinion ignores the law in Montana that the driver of a motor vehicle must look not only straight ahead, but laterally ahead. He is presumed to see that which he could see by looking. He will not be permitted to say that he did not see what he must have seen had he looked. The duty to keep a lookout includes the duty to see that which is in plain sight. Monforton is, in legal effect, in the position of having actually seen the passenger train, in the words of Boepple v. Mohalt, 101 Mont. 417, 54 P.2d 857. Autio v. Miller, 92 Mont. 150, 11 P.2d 1039; Johnson v. Herring, 89 Mont. 420, 300 P. 535; McNair v. Berger, 92 Mont. 441, 15 P.2d 834; Grant v. Chicago, etc., Ry., 78 Mont. 97, 252 P. 382; Webster v. Mountain States Tel. & Tel. Co., 108 Mont. 188, 89 P.2d 602; accord.
Monforton would have us believe that his view was obscure, that the steering wheel in his cab was an obstruction to a clear view out of the right cab window, in that it restricted his bodily movement whereby he could not get a clear view out across the wide open field that offered no obstruction whatever. Thereby Monforton is thrown cross-wise with section 72-164, R.C.M. 1947, wherein the State Legislature, in 1919, enacted this statute, ever since in force, that all persons driving motor vehicles where the view is obscure, or when a moving train is within sight or hearing, shall bring the vehicle to a full stop not less than ten nor more than one hundred feet from where the highway intersects the track. Neither Walters v. Chicago, Milwaukee & Puget Sound Ry., 47 Mont. 501, 133 P. 357, 46 L.R.A.,N.S., 702, supra, decided before the statute was enacted nor any decision by this court since the enactment can change or obliterate it.
In Broberg v. Northern Pac. Ry., 120 Mont. 280, 182 P.2d 851, 860, this court defined “obscure” as used in section 72-164, R.C.M.1947, as “not clear, full or distinct”, or “when it was not clear and distinct”. Obviously, as Monforton proceeded southward, and approached the crossing, this train was, or it was not, in clear, full or distinct view. Justice Adair states that Monforton’s view was not obscure nor was the moving train within the sight of Monforton. Iva Carpenter following Monforton a few hundred feet behind him saw the train approaching for some little distance, and “just felt that Mr. Monforton would naturally see it and stop”. Wallace Cox preceded Monforton going southward into Belgrade just before the accident in an unloaded truck, looked down the track and saw the train one or two miles away. He “always looked down the track before he came to the crossing”. It is not de ductible from the evidence either that Monforton’s view was not clear and distinct or that the moving train was not within Monforton’s sight.
This action sounds in ordinary negligence of appellants, hereinabove admitted. The defense is contributory negligence, the law upon which has been written by this court in black and white.
The record presents no evidence whatever that appellee’s attention was distracted by the Cloyd car or that Monforton, because of any distraction, failed to make the necessary look-out for the train. To find otherwise involves an assumption or inference based upon speculation or conjecture that the Cloyd car did distract his attention and the second assumption or inference based on the first, that this distraction was the cause of the failure of Monforton to discover the train’s approach. But under section 93-1301-1 to 4, and Fisher v. Butte Electric Ry., 72 Mont. 594, 235 P. 330, one inference cannot be drawn from any other inference or presumption.
Justice Smith wrote an opinion concurred in by two other justices in Sun Oil Co. v. Seamon, 349 Mich. 387, 84 N.W.2d 840. Chief Justice Dethmers wrote a dissenting opinion in the ease, concurred in by two other justices. Justice Kelly wrote a separate opinion, agreeing with the trial court’s opinion and that the judgment should be affirmed upon the ground that the statutory clear distance rule in Michigan is subject to an exception when an emergency situation was created by defendant. In his separate opinion, Justice Kelly concurred with Justice Smith’s opinion on this point only. Justice Smith, quoted by Justice Adair in his dissent, did not muster a majority upon the other grounds he asserted to support his opinion that defendant’s conduct amounted to willful and wanton misconduct and under the statutory clear distance rule, contributory negligence was not a defense.
The clear distance rule has no application to the instant case. There is no plea of willful or wanton misconduct on appellants’ part, therefore no question of barring the plea on that ground as was done in Sun Oil Co. v. Seamon, supra.
In conclusion, the dissent seems to us to ignore the trial court’s instruction No. 24, that appellee was not entitled to assume that appellants would operate their trains at any particular time or speed. ,
The judgment appealed from is reversed, with directions to enter judgment for appellants.
MR. CHIEF JUSTICE HARRISON, MR. JUSTICE CASTLES and THE HONORABLE W. M. BLACK, District Judge, sitting in place of MR. JUSTICE ANGSTMAN, concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
Defendant Alfred Owens was convicted of the crimes of mitigated deliberate homicide and robbery in the District Court of Yellowstone County following a jury trial. Defendant appeals.
The information charged defendant Alfred Owens and his brother; L. D. Owens, for four counts; Count I charged the codefendants with deliberate homicide committed purposely or knowingly. Alternatively, Count II charged the codefendants with deliberate homicide while engaged in the commission of a felony. Count III charged the codefendants with robbery. Count IV charged the codefendants with aggravated kidnapping.
L. D. Owens pleaded guilty to Counts II and III. Counts I and IV were dismissed as to him.
Commencing May 8, 1978, defendant Alfred Owens was tried. The jury found him guilty of mitigated deliberate homicide, a lesser included offense of Counts I and II, and of robbery. It found him not guilty of aggravated kidnapping.
On June 14, 1978, defendant was sentenced. Some confusion resulted, as the court minutes state defendant was sentenced to 40 years on each count to run consecutively, while the judgment states the sentences are to run concurrently.
Defendant Alfred Owens appeals.
The facts leading to this appeal are as follows.
In late 1977 defendant Alfred Owens, his older brother, L. D. Owens, and his brother’s girlfriend, Betty Shipes, left California heading for Texas. By a circuitous route, the trio arrived in Laurel, Montana, in the afternoon of November 27, 1977, and rented a motel room.
Sometime during the afternoon of their arrival, defendant, accompanied by his brother, purchased and signed for a box of .410 shotgun shells, ostensibly to do some bird hunting and target shooting. Neither defendant nor his brother purchased a hunting license. After dropping Shipes off at a laundromat near the motel, defendant and L. D. went to town where they started drinking in various bars. About midnight, defendant, who estimated he had drunk a case of beer during the day, returned to the motel room to go to bed. L. D., after accompanying defendant back to the room, left again to go eat breakfast.
While out this second time, L. D. met Kenneth Olson and subsequently invited him back to the motel. Once there, after a short conversation, L. D. decided to rob Olson, and drew the shotgun on him. Apparently, it was the sound of L. D. loading the gun that woke defendant.
During the robbery Shipes, who was feigning sleep, heard defendant tell Olson that he had better do what L. D. said. After emptying Olson’s pockets, L. D., defendant, and Olson left the motel room. There is some dispute over whether L. D. ordered defendant to accompany him or threatened him in any manner. According to Shipes, however, L. D. did not threaten defendant in any manner and merely said “let’s go” before all three left.
The three left the motel room and got into Shipes’ car. Defendant was driving with Olson on the front seat next to him and L. D. in the back holding the shotgun. Although L. D. initially indicated that he intended only to take Olson out somewhere and tie him up, defendant conceded that it soon became clear that L. D. intended to kill Olson.
After a running argument between defendant and L. D. while driving into the country, defendant stopped the car, got out, and began walking back to town. L. D. then drove the car a short distance, still holding the shotgun on Olson in the front seat next to him. L. D. then ordered Olson to get out of the car and to lie face down on the ground, and then shot him at least twice. Olson, shot in the back of the head and lower back, died within minutes.
L. D. turned the car around and on his way back into town picked up defendant. It is disputed whether, after L. D. had picked him up, defendant handed L. D. another shell, saying that they should shoot Olson again to be sure.
It is also disputed as to what-happened next. Both defendant’s and L. D.’s testimony at trial was internally contradictory and tended to be illogical in positing the next sequence of events. According to the reading of that testimony most favorable to defendant, he dropped L. D. off downtown where the latter got Olson’s vehicle and drove it to the Yellowstone River. After ransacking the vehicle and stashing the stolen goods under some bushes, L. D. then drove it into the river and walked back to the motel. Upon arriving at the motel, L. D. got Shipes’ car, drove back to the river alone, and packed the stolen goods in the trunk. He then returned to the motel where he met defendant who had been out walking to clear his head.
According to the testimony of the police officer arresting defendant, however, defendant told him that he had followed L. D. out to the river where they had both ransacked Olson’s truck and then returned to the motel. L. D. too testified at trial (and in an earlier statement) that defendant helped ransack Olson’s vehicle. As noted, both L. D.’s and defendant’s testimony at trial tended to be unclear as to defendant’s role in ransacking Olson’s truck, especially on such points as L. D. walking the one and one-half or two miles back to town from the site where he drove the vehicle into the river, and how L. D. managed to drive Shipes’ car back to pick up the goods when apparently defendant had one set of keys with him and Shipes had the other set in her purse.
In any event, both L. D. and defendant returned at the same time to the motel where they and Shipes packed up and left town, headed for Texas. En route, according to Shipes, defendant dictated to her a list of the rifles taken from Olson’s truck which she took down on her California motor vehicle code book. This book was eventually introduced into evidence. Shipes further testified that defendant and L. D. periodically disucssed the incident after they had left Montana.
Along the way the parties apparently pawned or sold various rifles and other items taken from Olson’s truck. Although defendant denied that he received any money from the sale of these items, he did concede “the money went into the gas tank and such as that.” Defendant also admitted he wore Olson’s wristwatch which L. D. had given him. The three stayed together until Kansas where, after L. D. and defendant had an argument, defendant separated from L. D. and Shipes. Significantly, Shipes testified that the reason defendant gave her for leaving was that he (defendant) was afraid he would hurt L. D.
Eventually L. D. was arrested in Texas and gave a statement implicating defendant, in order, he said at trial, to keep Shipes from incarceration. In this statement, which was used at trial to impeach his testimony, L. D. stated that defendant had, in fact, accompanied L. D. and Olson to the spot where the latter was shot and had ordered Olson to lie down just before L. D. shot him. L. D. further stated that while he, defendant, and Olson were driving out to the country, he and defendant had robbed Olson again, apparently getting his rings and watch. Shipes, incidentally, was never charged in this matter.
Defendant was subsequently arrested in Tucson, Arizona, where he too gave a statement to authorities as noted above.
Upon their return to Montana, L. D. Owens pleaded guilty to charges of deliberate • homicide and robbery and received a sentence of 140 years. Defendant Alfred Owens was tried and found guilty of mitigated deliberate homicide and robbery and received a sentence of 40 years on each count. Because of a conflict between the court minute entry and the judgment, it is unclear as to whether these sentences are to run consecutively or concurrently-
Defendant appeals.
1. Was there sufficient corroboration of the testimony of L. D. Owens to connect defendant to the commission of the crimes?
2. Did the District Court admit improper hearsay testimony?
3. Was the District Court’s refusal of defendant’s offered instruction concerning compulsion reversible error?
4. Was the District Court’s refusal of defendant’s offered instruction concerning accountability reversible error?
5. Did the District Court sentence defendant to two forty-year terms to run consecutively or concurrently?
Defendant’s first issue concerns the requirement that the testimony of an accomplice in a criminal act must be corroborated by other independent testimony or evidence which connects the defendant to the commission of the crime before the defendant can be convicted of the crime. This requirement is codified as section 95-3012, R.C.M.1947, now section 46-16-213 MCA: .
“A conviction cannot be had on the testimony of one responsible or legally accountable for the same offense, as defined in 94-2-106, unless the testimony is corroborated by other evidence which in itself, and without the aid of the testimony of the one responsible or legally accountable for the same offense tends to connect the defendant with the commission of the offense. The corroboration is not sufficient if it merely shows the commission of the offense or the circumstances thereof.”
Defendant’s argument basically is that there was no evidence, other than the testimony of L. D. Owens, his convicted accomplice, to connect him to the commission of the offenses for which he was convicted. We disagree.
We discussed the nature and quality of the required cor roborative evidence in State v. Coleman (1978), 177 Mont. 1, 579 P.2d 732, 748.
“The rule on corroboration is stated in State v. Cobb (1926), 76 Mont. 89, 245 P.265. In that case, we held that the corroborating evidence may be supplied by the defendant or his witnesses; it may be circumstantial evidence; it need not be sufficient to sustain a conviction or establish a prima facie case of guilt; and it need not be sufficient to connect the defendant with the crime but must tend to connect him with the crime. In State v. Keckonen (1938), 107 Mont. 253, 84 P.2d 341, we held that where the alleged corroborative evidence is equally consonant with a reasonable explanation pointing toward innocent conduct on the part of defendant, then such evidence does not tend to connect him with the commission of the offense and is in the realm of speculation, not corroboration. Where the claimed corroboration shows no more than an opportunity to commit a crime and simply proves suspicion, it is not sufficient corroboration to justify a conviction upon the testimony of an accomplice. State v. Jones (1933), 95 Mont. 317, 26 P.2d 341.”
Applying these rules, we conclude that the corroborating evidence presented at trial is sufficient to sustain defendant’s conviction.
From Brenda Dennis, a clerk in a store in Laurel, the jury heard that on the afternoon before Olson was killed, defendant purchased and signed for a box of .410 shotgun shells of the type used to kill Olson. Defendant’s argument that the lack of defendant’s fingerprints on the shells found at the murder scene eliminates any corroborative value is completely unpersuasive. L. D.’s fingerprints were not found on these shells either, yet he admitted that he had used them to kill Olson.
From Betty Shipes, who was not an accomplice to the crimes, the jury heard that the defendant instructed Olson to do as L. D. directed during the robbery in the motel room; that defendant made no attempt to stop L. D. from robbing Olson; and that L. D. never threatened or ordered defendant to assist him in the robbery. Shipes also testified that she heard defendant, L. D., and Olson leave the motel together; that only L. D. and defendant returned, again together; and that upon their return, the party hastily packed up and left town. She further testified that, after the group had left town, defendant dictated to her a list of weapons that had been taken from Olson’s vehicle.
From Robert Lough, the police officer who arrested defendant in Arizona, the jury heard during the State’s rebuttal that defendant had admitted that he had aided L. D. in robbing the victim in the motel room and that he had left the scene of the homicide only because he believed it was an inappropriate place as he thought they had stopped in someone’s driveway, not because he necessarily believed the act itself was wrong. Lough further testified that defendant stated to him that he had helped ransack and dispose of Olson’s vehicle and that he had himself sold one of the shotguns taken from Olson’s vehicle.
Finally, from defendant himself, the jury heard that he did purchase the shotgun shells used to kill Olson. Defendant also admitted that during the robbery of Olson in the motel room, he had told Olson to do as L. D. directed. Defendant testified that he drove L. D. and Olson out into the country almost to the site where Olson was killed; that after hearing Olson being shot, he drove L. D. back into town; and that later he, L. D. and Shipes packed up hurriedly and left town. Although defendant denied receiving any spoils from the robbery, he did concede that the money received from the sale of the stolen items financed the group’s journey toward Texas and that after the group had left Montana, he was given Olson’s wristwatch by L. D.
A person may be convicted of deliberate homicide if such homicide “is committed while the offender is ... an accomplice in the commission of ... or flight after committing . . . any other felony which involves the use or threat of physical force or violence against any individual.” Section 94-5-102(l)(b), R.C.M.1947, now section 45-5-102 MCA.
Clearly, this evidence tends to connect defendant with the com mission of the offenses of robbery and homicide as a participant in the actual robbery and as an accomplice in the commission of and flight after the deliberate homicide of Kenneth Olson after the robbery.
The second issue presented for review concerns the introduction through the testimony of one witness of a prior inconsistent statement made by another witness. The State correctly states that, as defendant made no objection at trial to the introduction of any of the testimony he now claims was improperly admitted hearsay, he is barred from predicating error on its admission on appeal, and therefore this Court need not consider the issue. Rule 103(a)(1), Mont.R.Evid; State v. Armstrong (1977), 172 Mont. 296, 562 P.2d 1129, 1132. In a recent case presenting very similar circumstances, we stated:
“. . .At any rate, defendants never objected to Wicks’ testifying to the Peterson statement nor did they move to strike it from the record. They may not now object to its introduction.” State v. Cripps (1978), 177 Mont. 410, 582 P.2d 312, 317.
The same rule applies to the instant case. In any event, were we to examine defendant’s contention on the merits, our ultimate conclusion would be unchanged. See State v. Longacre (1975), 168 Mont. 311, 312, 542 P.2d 1221, 1222; State v. Mally (1961), 139 Mont. 599, 609, 366 P.2d 868, 873.
The third issue presented for review concerns the refusal of the District Court to give defendant’s requested instruction on the defense of compulsion which read:
“You are instructed that a person is not guilty of an offense, other than an offense punishable with death, by reason of conduct which he performs imder the compulsion of threat or menace of the imminent infliction of death or serious bodily harm, if he reasonably believes that death or serious bodily harm will be inflicted upon him if he does not perform such conduct.”
Defendant is correct in stating that where there is evidence in support of any defense offered by an accused which raises an issue of fact favorable to him, the trial court should present the issue by an affirmative instruction which explains the pertinent law. State v. Azure (1977), 175 Mont. 189, 573 P.2d 179, 182. However, “[w]here there is no evidence in the record supporting each element of the [compulsion] defense, the court may properly refuse to instruct the jury on the defense.” State v. Gallaher (1978), 177 Mont. 150, 580 P.2d 930, 935. (Emphasis added.)
The elements of the compulsion defense are found in section 94-3-110, R.C.M.1947, now section 45-2-212 MCA. Under that statute, for a defendant to avail himself of the defense of compulsion, he must show that: (1) he was compelled to perform the offensive conduct (2) by the threat or menace (3) of the imminent infliction (4) of death or serious bodily harm, and that (5) he believed that death or serious bodily harm would be inflicted upon him if he did not perform such conduct, and (6) his belief was reasonable.
We have examined the trial transcript and conclude that defendant failed to produce evidence in support of several of these elements. There was absolutely no testimony that L. D. Owens threatened defendant at any time with the imminent infliction of death or serious bodily harm; defendant did not testify he believed his older brother would have shot him had he refused to comply with his directions. L. D.’s statement when he, defendant, and Olson left the motel room, according to Betty Shipes, was simply “let’s go.” Prior to that time, defendant himself had directed Olson to comply with L. D.’s orders, doing so under absolutely no threat from L. D.
Although defendant contends that during the drive out to Olson’s execution site L. D. repeatedly told defendant to be quiet and keep driving, he admitted that L. D. never pointed the shotgun at him. Defendant eventually got out of the car and started walking back to town, apparently without fear of any physical harm. Shortly thereafter, he voluntarily got back into the car and drove L. D. back to Laurel where he allegedly dropped him off to pick up Olson’s vehicle. After this point, defendant had the shotgun in his possession in Shipes’ car and L. D. was not around. Yet defendant failed to inform any authorities as to the incident involving Olson and in fact voluntarily continued his association with L. D. by helping him pack up and then leaving town with him. These are hardly the actions of a person who has just been compelled to perform an odious criminal act by the threat of imminent infliction of serious bodily harm or death. In fact, it appears from defendant’s testimony that he was more frightened of the situation because he had never participated in anything like it before rather than of anything L. D. might have done. Indeed, it appears that defendant was not afraid of L. D. at all — the reason he left L. D. and Shipes in Kansas was that he was afraid that he might end up hurting L. D.
The compulsion defense is a narrow defense. As the Commission Comment to section 94-3-110 states:
“The justification does not extend to action under threat of damage to property, or of injury less than serious bodily harm or even of death or serious bodily harm which is not imminent; but the person’s reasonable fear of imminent death or serious bodily harm if mistaken, is within the principle. (See 1 Bishop on Criminal Law (9th edd ¶¶ 346 to 348.)
“This established type of formulation has been criticized. However, to broaden the defense to accord completely with the ‘free will’ theory would be to invite routine contentions of some kind of pressures, such as ‘threats of harm to property, reputation, health, general safety, and to acts done under the orders,’ with accompanying assertion of individual personality weakness. (Newman and Weitzer, supra, at 334.) Prof. Wharton, after stating the established restrictions upon the defense, comments: ‘It would be a most dangerous rule if a defendant could shield himself from prosecution for crime by merely setting up a fear from or because of threat of a third person.’ (1 Wharton’s Criminal Law (19th ed.), ¶ 384.)”
Defendant failed to introduce any evidence that he feared the imminent infliction of death or serious bodily injury or that he reasonably believed that, if he failed to do as L. D. directed, such injury or death would be inflicted. The proposed instruction was properly refused.
The fourth issue for review concerns the. District Court’s refusal to give defendant’s proposed instruction on accountability which stated:
“You are instructed that some evidence has been introduced tending to show that a person other than the defendant, Alfred Owens, is responsible for the crimes here charged. If, after a consideration of all the evidence, there remains in your minds a reasonable doubt as to who is responsible for the crimes, then it is your duty to acquit.”
The trial court did give the following instruction:
“You are instructed that a person is legally accountable for the conduct of another when either before or during the commission of an offense, and with the purpose to promote or facilitate such commission, he solicits, aids, abets, agrees or attempts to aid such person in the planning or commission of the offense.”
Sections 94-2-106 and 94-2-107, R.C.M.1947, now sections 45-2-301 and 45-2-302 MCA, the statutes on accountability, state in pertinent part:
“94-2-106. Accountability for conduct of another. A person is responsible for conduct which is an element of an offense, if the conduct is either that of the person himself, or that of another and he is legally accountable for such conduct as provided in section 94-2-107, or both. “94-2-107. When accountability exists. A person is legally accountable for the conduct of another when:
“(3) either before or during the commission of an offense, and with the purpose to promote or facilitate such commission, he solicits, aids, abets, agrees or attempts to aid, such other person in the planning or commission of the offense.”
From a comparison of the statutes with defendant’s proposed instruction, it is clear that the proposed instruction is an incorrect statement of the law. It creates the distinct impression that the defendant could not be held responsible for the crimes charged if somebody else actually performed the offensive conduct. This is contrary to the statute and has been rejected by this Court at least since 1914. State v. Chevigny (1914), 48 Mont. 382, 385-86, 138 P. 257, 258. The law on accountability was correctly presented in the given instruction. Defendant’s proposed instruction was properly refused.
The last issue presented for review is not really an issue at all. The State concedes that the two forty-year sentences given defendant are to run concurrently as specified in the judgment rather than consecutively as stated in the minute book entry. Absent special circumstances indicating otherwise, the final formal judgment as entered by the tri.al court controls over an inconsistent minute entry. See, section 95-2404, R.C.M.1947, now section 46-20-104 MCA; State v. Herndon (1965), 1 Ariz.App. 180, 400 P.2d 851, 852.
The judgment of the District Court is affirmed.
MR. JUSTICES DALY, HARRISON, SHEA and SHEEHY concur.
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MR. CHIEF JUSTICE SHEA
delivered the opinion of the Court.
These consolidated cases come before this Court on petition for postconviction relief. Petitioners Grifaldo and Vanderbeck each claim that he is entitled to designation as a “nondangerous offender for purposes of parole eligibility” under mandatory provi sions of section 95-2206.16(1), R.C.M.1947, now section 46-18-404(1) MCA. Designation as a nondangerous offender enables a prisoner to be eligible for parole after he has served one-quarter of his sentence.
Grifaldo was charged with robbery, allegedly committed on August 20, 1977. Grifaldo pleaded guilty, and on October 27, 1977, was sentenced by the Yellowstone County District Court to fifteen years in prison. Vanderbeck was convicted by jury verdict in the Yellowstone County District Court of aggravated assault and unlawful restraint, allegedly committed on June 22, 1978. On November 1, 1978, Vanderbeck was sentenced to eight years for aggravated assault and six months for unlawful restraint, sentences to run concurrently.
During the five years preceding commission of their offenses, neither Grifaldo nor Vanderbeck was convicted of, or incarcerated for, an offense for which a sentence in excess of one year could have been imposed. However, neither Grifaldo nor Vanderbeck was designated a nondangerous offender for purposes of parole eligibility.
On March 2, 1979, at the request of the Montana Department of Institutions, the Montana Attorney General issued an opinion relating to parole eligibility of prisoners. 38 Atty.Gen.Op. No. 10. In pertinent part, the Attorney General held that a prisoner serving a time sentence who was not expressly designated “nondangerous” in connection with a crime committed after July 1, 1977, is ineligible for parole until he has served one-half of his sentence, less good time. As a result, petitioners were classified as ineligible for parole until one-half of their sentences are served.
Parole eligibility is governed by section 95-3214(1), R.C.M. 1947, now section 46-23-201(1) MCA, which provides:
. “. . . Subject to the following restrictions, the board shall release on parole by appropriate order any person confined in the Montana state prison, except persons under sentence of death and persons serving sentences imposed under 95-2206(3)(b), when in its opinion there is reasonable probability that the prisoner can be released without detriment to himself or to the community:
“(a) No convict serving a time sentence may be paroled until he has served at least one-half of his full term, less the good time allowances provided for in 80-1905; except that a convict designated as a nondangerous offender under 95-2206.16 may be paroled after he has served one-quarter of his full term, less the good time allowance provided for in 80-1905. Any offender serving a time sentence may be paroled after he has served, upon his term of sentence, 17Vi years.
“(b) No convict serving a life sentence may be paroled until he has served 30 years, less the good time allowance provided for in 80-1905.” (Emphasis added.)
Petitioners contend that they are entitled to designation as non-dangerous offenders under section 95-2206.16(1), R.C.M.1947, now section 46-18-404(1) MCA, which provides:
“. . . The sentencing court shall designate an offender a non-dangerous offender for purposes of eligibility for parole under 95-3214 if:
“(a) during the 5 years preceding the commission of the offense for which the offender is being sentenced, the offender was neither convicted of nor incarcerated for an offense committed in this state or any other jurisdiction for which a sentence to a term of imprisonment in excess of 1 year could have been imposed; or “(b) the court has determined, based on any presentence report and the evidence presented at the trial and the sentencing hearing, that the offender does not represent a substantial danger to other persons, or society.” (Emphasis added.)
The State concedes that under the mandatory language of the above statute petitioners are entitled to designation as nondangerous offenders. The State argues, however, that in declining to do so, the sentencing courts impliedly determined that each petitioner represented a “substantial danger to other persons or society” under subsection (b). The State therefore urges that we remand these cases to the sentencing courts for determination of whether each petitioners parole eligibility should be limited pursuant to section 95-2206(3)(b), R.C.M., now section 46-18-202(2) MCA, up to one-half of their sentences.
Section 95-2206(3)(b) permits the sentencing court to impose the restriction that a defendant be ineligible for parole for the full term of his sentence, not just half of it. It states:
“. . . Whenever the district court imposes a sentence of imprisonment in the state prison for a term exceeding 1 year, the court may also impose the restriction that the defendant be ineligible for parole and participation in the prisoner furlough program while serving his term. If such a restriction is to be imposed, the court shall state the reasons for it in writing. If the court finds that the restriction is necessary for the protection of society, it shall impose the restriction as part of the sentence and the judgment shall contain a statement of the reasons for the restriction.” (Emphasis added.)
Under this provision, the sentencing court “may” impose the restriction of parole ineligibility, but in so doing, it must (“shall”) state reasons for the restriction in writing. We can no more adopt the implication urged by the State — that failure or refusal to designate petitioners as nondangerous offenders constituted a determination of their dangerousness — than we can imply that failure to invoke section 95-2206(3)(b) constituted a determination that restrictions on petitioners’ parole eligibility were inappropriate.
Section 95-2206.16(1), R.C.M.1947, now section 46-18-404(1) MCA, clearly provides that the sentencing court “shall” designate an offender a nondangerous offender if either of the conditions of subsection (a) “or” (b) are met. This statute governed the District Court’s conduct in sentencing petitioners Grifaldo and Vanderbeck. Both Grifaldo and Vanderbeck satisfied the condition specified in subsection (a), and therefore, the sentencing courts erred in failing to designate them as nondangerous offenders.
The cases are remanded to the sentencing courts with directions to designate the petitioners as nondangerous offenders for purposes of parole eligibility.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEEHY concur.
|
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MR. JUSTICE ANGSTMAN
delivered the Opinion of the Court.
Plaintiff and defendant, husband and wife, were divorced by decree entered on December 14, 1959. Defendant defaulted in the action and the decree was accordingly entered on her default. A baby girl, Sheryl Jaye, was born to the marriage on May 28, 1957. At the time of the divorce the custody of the child was awarded to plaintiff, the father. The mother at the time of the divorce was in the hospital undergoing an operation and had been bedridden for a week or more prior to being taken to the hospital. Bach of the parties has since remarried. Defendant having remarried on February 25, 1960, and plaintiff prior thereto.
On March 4, 1960, defendant mother made application for modification of the divorce decree so as to award the custody of the baby girl to her subject to reasonable visitation on the part of plaintiff. Her application, after hearing, was denied and this appeal is from the order denying her application. Plaintiff, father of the child, has not appeared in this court and has filed no brief.
On the hearing on her application, appellant submitted proof that since her operation she has been restored to good health and now has a home in which to properly care and provide for her daughter. Her present husband is anxious and willing to have the baby girl in his home and to support and provide for her. Plaintiff was the only witness who testified in his behalf. He furnished no testimony that his present wife was desirous of having Sheryl Jaye live with them or that she would supply the love, affection, care and attention that a child of that age requires and obtains in a normal home from her mother. Plaintiff did testify that he and his wife treated Sheryl Jaye the same as they treated a four year old son of hers by a previous marriage and that his present wife has demonstrated love and affection for Sheryl Jaye. The evidence is not in dispute. Both parties are fit and proper ones to have the custody of the child. There is no evidence to show that either one is not a fit and proper person to have the custody.
We have fairly considered all the evidence but we are unable to agree with the trial judge in denying the motion to modify the decree with regal’d to the custody of the child. It should be noted that the grounds of the divorce were mental cruelty charged in the language of the statute without specifying any facts upon which the cruelty was predicated. We find in the evidence that a deep affection exists between the defendant mother and her baby daughter. Her subsequent marriage after the divorce was granted and her restoration to health are sufficient to show a change in conditions justifying the modification of the decree. Bayers v. Bayers, 129 Mont. 1, 281 P.2d 506; and Trudgen v. Trudgen, 134 Mont. 174, 329 P.2d 225.
The rule is statutory in this state that the custody of a child of tender years should be given to the mother, section 91-4515, R.C.M.1947. This is especially true when the child is a daughter. Ex parte Bourquin, 88 Mont. 118, 290 P. 250.
The courts throughout the country recognize the indisputable proposition that there is no substitute for a mother’s love, affection, and care of her own offspring. A few of the cases recognizing this rule are Reynolds v. Reynolds, 109 W.Va. 513, 155 S.E. 652; Ross v. Ross, 89 Colo. 536, 5 P.2d 246, 78 A.L.R. 313; Freeland v. Freeland, 92 Wash. 482, 159 P. 698; Goldson v. Goldson, 192 Or. 611, 236 P.2d 314; Averch v. Averch, 104 Colo. 365, 90 P.2d 962.
In the Freeland case, supra, the Supreme Court of Washington said [99 Wash. 482, 159 P. 699] :
“Mother love is a dominant trait in even the weakest of women, and as a general thing surpasses the paternal affection for the common offspring, and, moreover, a child needs a mother’s care even more than a father’s. For these reasons courts are loathe to deprive the mother of the custody of her children, and will not do so unless it is shown clearly that she is so far an unfit and improper person to be intrusted with such custody as to endanger the welfare of the children.”
We recognize the rule that this court will usually follow the ruling of the lower court in these matters where there is evidence supporting its determination. However, as above pointed out, in this case there is no conflict in the evidence. We believe that all of the evidence supports the mother’s right to have the custody of her child and in consequence it is our view that the court abused its discretion in not modifying the decree of divorce so as to award the custody to the mother.
The order appealed from is reversed.
MR. CHIEF JUSTICE HARRISON and MR. JUSTICES BOTTOMLY, ADAIR and CASTLES concur.
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MR. JUSTICE WEBER
delivered the opinion of the Court.
The Montana Human Rights Commission, acting through its staff, the Montana Human Rights Division (herein referred to as HRC), appeals from summary judgment and a final judgment of dismissal in the Thirteenth Judicial District Court. We vacate the judgment and remand the cause for further action by the District Court.
The sole issue before this court is whether, as a matter of law, the HRC may, as part of its investigation of a discrimination complaint, require an employer to submit certain evidence relating to persons other than the complainants.
Four persons filed discrimination complaints with the HRC against the City of Billings. William Wong alleged that he was discriminated against because of his Chinese ancestry, in his bid for promotion to Sergeant with the Billings Police Department. Jerry Klundt charged that he had been denied merit or step increases and had been demoted because of his Crow Indian background and in retaliation for union activities and for having filed a charge of discrimination. Win Poynter alleged that she had been passed over for promotion at Billing’s Logan International Airport because of her sex, and jobs for which she was qualified had been filled by less qualified male applicants. Jesse Gonzales (who has since withdrawn his complaint) alleged that he was denied a five-year pay increase as a civilian employee of the Billings Fire Department and assigned undesirable shifts despite his seniority because of his sex and his Mexican-American background.
During its investigation of these complaints, the HRC submitted a supplemental interrogatory to the City of Billings, requesting personnel files, employee evaluations, disciplinary records, test scores and application materials for complainants and certain other employees and applicants for employment with the City of Billings. When the City did not comply with the HRC’s request, the HRC issued subpoenas duces tecum, pursuant to section 49-2-203, MCA, demanding the information. The City answered that it “would not voluntarily turn over to [the HRC] the personnel files and test scores for the individuals requested other than the charging parties without consent of the persons that are the subjects of the personnel files unless of course there was a court order directing us to do so.”
On March 12, 1981, the HRC filed a petition with the District Court, for enforcement of the subpoenas duces tecum, against the City of Billings. The City responded that the information sought by the HRC is personal, and releasing it without prior consent of the individuals involved “may constitute an invasion of those persons’ privacy and may render the City liable for that invasion.”
By stipulation, filed June 17, 1981, the parties agreed to the consolidation of the HRC’s action against the City of Billings with a pending action by the HRC against the County of Yellowstone. Katherine Webster had filed a complaint with the HRC, alleging that she was discriminated against in hiring by the Yellowstone County Sheriff’s Department on the basis of her sex, race, and marital status. Like the City, the County had refused to produce employment applications and other information pertaining to the other individuals who had applied for the position(s) for which Ms. Webster had applied.
On August 7, 1981, after a July hearing on the matter, the District Court denied the HRC’s motion for summary judgment, and granted the motion of the City and County for summary judgment. The accompanying memorandum of the District Court indicated the court’s determination that (1) the disputed information is subject to the protection of Article II, Section 10, Mont. Const.; (2) respondents are not in a position to provide the information without the consent of the individuals whose right of privacy is affected; and (3) the HRC had shown neither a compelling state interest in obtaining the information, nor exhaustion of other sources of obtaining the information. The District Court entered its judgment of dismissal in favor of the City and County on September 28, 1981. The HRC appeals.
The complainants have filed complaints with the Federal Equal Employment Opportunity Commission alleging that respondents’ actions violated Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e et seq. That Commission, pursuant to section 706 of Title VII, is awaiting the outcome of this action before moving on complainants’ charges.
I.
Article II, Section 10, of the Montana Constitution states:
“Right of Privacy. The right of individual privacy is essential to the well-being of a free society and shall not be infringed without the showing of a compelling state interest.” The Transcript of the 1972 Constitutional Convention clearly indicates the significance to the delegates of this right, which nowhere appears in the Federal Constitution but has been judicially inferred from the provisions of the Bill of Rights. Delegate Campbell read into the record an editorial statement from the Montana Standard, February 3, 1972, here included in part:
“We think the right of privacy is like a number of other inalienable rights; a carefully worded constitutional article reaffirming this right is desirable. Wade Dahood of Anaconda, Chairman of the Bill of Rights Committee, hit the náil on the head when he said: ‘As government functions and controls expand, it is necessary to expand the rights of the individual.’ The right to privacy deserves specific protection.” Tr. of the Montana Constitutional Convention, Vol. V, p. 1681.
Indeed, at one point, the delegate struck out the phrase requiring a compelling state interest, because, in the words of Delegate Harper:
“. . . that may be interpreted by whatever state agency happens to have an interest in invading my privacy at that particular time.” Tr. at p. 1682.
David Gorman, in an article entitled “Rights in Collision: The Individual Right of Privacy and the Public Right to Know,” 39 Mont.L.Rev. 249, 251 (1978), noted that the delegates’ decision to include the phrase after all was intended to strengthen rather than weaken the constitutional protection afforded the individual right to privacy:
“When the amended provision was reported out of the Style and Drafting Committee the delegate who had offered the deleting amendment moved for reconsideration supporting his motion by saying that his general intent, to strengthen the protection of the individual, was not served by his amendment. The debate on the motion to reconsider (which passed) and the subsequent motion to reintroduce the ‘compelling state interest’ test was lively. Various delegates took the positions that the standard was implicit, that the right of privacy had been rendered absolute, that the amended provision was meaningless to a court, and that in default of any explicit standard the courts could choose to apply a mere ‘reasonableness’ test to defeat privacy rights. It was this last argument which apparently swayed the convention as a whole, and the ‘compelling state interest’ test was restored.
“This explicit statement of the weight to be accorded to the right guaranteed by the provision places a heavy burden on the state. It has even been suggested that the task faced by the state of showing a compelling interest is, in most situations, an impossible one. Clearly the delegates placed a very high value on the right of privacy, and they forcefully indicated that the courts were to accord it every protection available under this most stringent standard of judicial review.” 39 Mont.L.Rev. at 251.
There can be little doubt that the federal protection is less stringent and would allow discovery without requiring a showing of compelling state interest under these circumstances. The Tenth Circuit Court of Appeals addressed the question in the context of privacy rights under the Fourth Amendment, in Equal Employment Opportunity Commission v. University of New Mexico, Albuquerque (10th Cir. 1974), 504 F.2d 1296, 1302, a case raising a legal issue simi lar to the present one:
“The law governing the limits on the administrative power of investigation has evolved from the earlier judicial condemnation of fishing expeditions to that of enforcement of the subpoena power ‘if the inquiry is within the authority of the agency, the demand is not too indefinite, and the information sought is reasonably relevant.’ United States v. Morton Salt Co., 338 U.S. 632, 652, 70 S.Ct. 357, 369, 94 L.Ed. 401 (1950).”
The court concluded that, under federal law,
“. . .today that which we have previously considered to be administrative ‘fishing expeditions’ are often permitted; and that administrative subpoenas may be enforced for investigative purposes unless they are plainly incompetent or irrelevant to any lawful purpose.” 504 F.2d at 1303.
In the present case, the HRC seeks information which the District Court recognized as relevant to proper investigation by the HRC of the employment discrimination complaints; the subpoenas clearly indicate the information which is sought. Under the federal standard, discovery of the personnel files and records would not be restricted by a penumbral right of privacy.
However, as noted, Montana’s constitutional right of privacy is explicit. This Court has recognized that the protection it offers is more substantial than that inferred from the Federal Constitution. In State v. Hyem (1981), Mont., 630 P.2d 202, 38 St.Rep. 891, we upheld the application of the exclusionary rule to private searches which invaded the privacy rights of individuals, a protection not found under the Federal Constitution. Therein we stated:
“Privacy has been defined as the ability to control access to information about oneself. Fried, Privacy (1968), 77 Yale L.J. 475, 482, 483.” 630 P.2d at 209, 38 St.Rep. at 898.
The HRC argues that enforcement of the subpoenas duces tecum would not be an infringement of a privacy right here, because no privacy right exists where there is no statutory privilege (see section 26-1-801 et. seq., MCA), and where an employee or applicant for employment voluntarily submits the information to a third party. The HRC relies upon Hastetter v. Behan (1982), Mont., 639 P.2d 510, 39 St.Rep. 100, wherein this court relied upon federal case law in upholding the respondent’s disclosure of appellant’s telephone records. We quoted Smith v. Maryland (1979), 442 U.S. 735, 99 S.Ct. 2577, 61 L.Ed.2d 220:
“ ‘Second, even if petitioner did harbor some subjective expectation that the phone numbers he dialed would remain private, this expectation is not “one that society is prepared to recognize as ‘reasonable.’ This court consistently has held that a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties.” (Citations omitted). 639 P.2d at 512-513, 39 St.Rep. at 103.
We find the HRC’s reliance upon Hastetter, supra, misplaced. This Court is not bound to give precedential value to dicta, State v. Gopher (1981), Mont., 631 P.2d 293, 296, 38 St.Rep. 1078, 1081-82, and we must abandon that language of Smith, supra, which, incorporated into Hastetter, appears to deny the protection of section 10 to all communications voluntarily given to third parties. Hastetter’s holding was that the appellant had no reasonable expectation of privacy in telephone records justifying constitutional protection. In Hastetter, the disputed information was not the contents of the communication, the privacy of which was not addressed by this Court, but the fact of communication. That information was known by appellant to be recorded by the phone company for a number of business purposes. We were not persuaded that appellant could have reasonably expected the numbers he dialed to remain secret.
In the present case, the personal information submitted to employers by prospective and current employees, and that contained in materials compiled by employers is quite different from the relatively innocuous telephone records in Hastetter. While we are aware that much of the informa tion contained in employment files and records is harmless or is already a matter of general knowledge, we are not persuaded that the records are entirely free of damaging information which the individuals involved would not wish and in fact did not expect to be disclosed. The standard set forth in Hastetter is whether the party involved subjectively expected the information to be and remain private, and whether society is willing to recognize that expectation as reasonable. This standard was adopted by the Supreme Court in Katz v. United States (1967), 389 U.S. 347, 88 S.Ct. 507, 19 L.Ed.2d 576.
Employment records would reasonably contain, among less sensitive information, references to family problems, health problems, past and present employers’ criticism and observations, military records, scores from IQ tests and performance tests, prison records, drug or alcohol problems, and other matters, many of which most individuals would not willingly disclose publicly. Some testing and disclosure (e.g., past employment records, prison records, drug or alcohol use) is a necessary part of many applications for employment; other information may be compiled by present employers or may be submitted by an employee in explanation of absence from work or poor performance on the job. It is clear that there is frequently pressure upon an employee to communicate these matters to his employer in the privacy of his boss’s office or on an application for employment or promotion. And while, as far as we know, respondents gave their employees no specific assurances of confidentiality, we believe that employees would reasonably expect such communication normally would be kept confidential. Therefore, we find that under the circumstances of this case, the information requested by the HRC is subject to the protection of Montana’s constitutional right of privacy (§10). The HRC argues that because an employee knows information concerning his employment may be sought by prospective employers in the future, he may not reasonably expect it will never be divulged to anyone else. It may well be unreasonable for an employee to expect that this information will never be divulged to prospective employers. It does not necessarily follow that, therefore, this information is unprotected by the right of privacy under all other circumstances, even where an employee can reasonably expect it will not be divulged, such as in an investigation or during a public hearing in which the employee is only remotely involved. The right of privacy turns on the reasonableness of the expectation, which may vary, even regarding the same information and the same recipient of that information.
We hold that the District Court correctly found that the information sought by the HRC is protected by Montana’s constitutional right of privacy.
We note in passing the HRC’s claim that respondents have no standing to assert the constitutional rights of their employees in refusing to comply with the HRC’s subpoenas duces tecum. One who is neither injured nor jeopardized by the operation of a statute cannot challenge its constitutionality. State v. Kirkland (1979), Mont., 602 P.2d 586, 590, 36 St.Rep. 1963, 1966. Here, respondents argue that disclosing personal information about employees and applicants for employment without the consent of those individuals involved or without a court order forcing them to disclose, places them in jeopardy because it could lead to their being sued by those individuals for revealing private information. Other courts have held, and we agree, that potential economic injury is sufficient to establish standing. In Falcon v. Alaska Public Offices Commission (Alaska, 1977), 570 P.2d 469, the court found a doctor had the right to deny, on behalf of his patients, government access to his files, because such disclosure could discourage prospective patients.
II.
The delegates to the 1972 Constitutional Convention recognized that the right of privacy is not absolute, and that under certain circumstances, the State’s interest in ob taining information about individuals may outweigh the individuals’ right of privacy. Tr. of the Montana Constitutional Convention, Vol. VI, p. 1851.
In State ex rel. Zander v. District Court (1979), 181 Mont. 454, 458-459, 591 P.2d 656, 660, we recognized the rule:
“From these cases and our constitutional language certain principles of law emerge. The right of individual privacy is a fundamental constitutional right expressly recognized as essential to the well-being of our society. The constitutional guarantee of individual privacy is not absolute. It must be interpreted, construed and applied in the light of other constitutional guarantees and not in isolation. The right of individual privacy must yield to a compelling state interest.” See Hyem, supra, 630 P.2d at 205-206, 38 St.Rep. at 894:
“Under the 1972 Montana Constitution, the only exception to the restriction against the invasion of individual privacy is a compelling state interest.”
Here we find a compelling state interest which itself arises from the Montana Constitution. Article II, Section 4, of the Montana Constitution states:
“The dignity of the human being is inviolable. No person shall be denied the equal protection of the laws. Neither the state nor any person, firm, corporation, or institution shall discriminate against any person in the exercise of his civil or political rights on account of race, color, sex, culture, social origin or condition, or political or religious ideas.”
This section was unanimously adopted by the delegates.
Under the Montana Human Rights Act of 1974, section 49-1-102, MCA, provides that the right to be free from discrimination includes the right to obtain and hold employment without discrimination. The Human Rights Commission, administrative watchdog over discriminatory practices in Montana, possesses subpoena power as provided under section 49-2-203, MCA:
“(1.) The commission may subpoena witnesses, take the testimony of any person under oath, administer oaths, and, in connection therewith require the production for exami nation of books, papers, or other tangible evidence relating to a matter either under investigation by the commission staff or in question before the commission ...”
The investigative powers of the HRC must be broad enough to allow a thorough scrutiny of the circumstances surrounding complaints of discrimination. The scrutiny in the present case must involve comparison of employee records, applications, evaluations, tests, etc. There is simply no other way for the HRC to determine whether the City and County discriminated in the ways alleged by complainants. A consideration of the complainants’ files alone would not yield the comparative data which is essential here. To deny the HRC access to the material it seeks renders ineffectual a substantial portion of its statutory investigative powers, and is a large step toward drawing the teeth of the HRC. That we are unwilling to do.
Respondents argue, and the District Court found, that because the HRC did not seek the consent of the individuals involved to its perusal of their employment records, that it had not exhausted its means of obtaining the information, and thus had not established a compelling state interest.
We do not agree, for several reasons. In the first place there are well over one hundred files involved. The time, cost, and inconvenience of the search for individual employees, past and present, and the attempt to gain their consent, would be prohibitive. Undoubtedly, a good many individuals, particularly those who may have been hired or promoted because of an employer’s discriminatory rejection of more qualified or equally qualified applicants, would refuse the HRC access to the files. The respondents have suggested that, in that event, the files could be subpoenaed directly from the individual employees; that would be impracticable and would lead to yet more litigation. Finally, some employees whose files are sought may have died or left the area, or simply may be impossible to track down. The only reasonable, thorough and relatively efficient means of obtaining access to the files is through the employer. We do not find that the HRC has failed to establish a compelling state interest by failing to contact and obtain the permission of those employees and ex-employees of the City and County whose files they seek. The practical realities of the situation, and the greater importance of the protection from discrimination convince us that the HRC has made a sufficient showing of a compelling state interest, and that the disputed files and materials must be made available to the HRC.
The respondents suggest that test scores and other arguably sensitive material could be altered in such a way that the names of the employees would not be disclosed to the HRC, and thus the intrusion would be less objectionable. The HRC correctly points out that many names are indicators of racial origin, frequently of sex, and in some cases of marital status, which information might not be available in the file itself. Furthermore, the HRC objects to any alteration of files because, at that point, the accuracy of the HRC’s investigation depends upon the good faith of the employer, the very party with discriminatory behavior, whose temptation to doctor files undoubtedly increases with the likelihood the HRC will find that employer guilty of discriminatory practices.
We agree with the HRC, that all information in the employers’ personnel files, which could resonably cast some light on the truth or falsity of complainants’ allegations, and which is included under section 49-2-203, MCA, should be subject to the investigative subpoena of the HRC.
III.
We have concluded that it is necessary that respondents provide the requested information to the HRC. It is also necessary to establish some substantial protection of the privacy of those individuals whose files are made available to the HRC. It is apparent that there must be a step by step learning process involved, in which the administrative agencies and the courts will determine on a case by case basis how the right to privacy and the right to know should be balanced.
The HRC argues that its regulation providing for confidentiality in investigations sufficiently protects the individuals involved. The regulation states:
“Confidentiality. (1) Neither a charge nor information obtained in the investigation of a charge, nor any record required by the Commission to be filed with the Commission shall be made matters of public information by the Commission prior to the certifying of a case for public hearing (including hearing on a no cause finding, a default hearing or a hearing alleging violation of a conciliation agreement). This provision does not apply to such earlier disclosures to the Charging Party, the Respondent, witnesses, counsel, and representatives of interested Federal, State and local agencies as may be appropriate or necessary to the carrying out of the Commission’s functions under the act, nor to the publication of data or abstracts derived from such information in a form which does not reveal the identity of the charging party, respondent, or person supplying the information. The Commission may enter into agreements with any federal, state, or local governmental agency for the deferral of complaints or sharing of information regarding complaints which agreements may require more stringent standards of confidentiality with regard to such complaints of such information.”
Administrative Rules of Montana §24.9.212.
There is very limited protection in this regulation so far as the right of privacy is concerned. The restriction on the Commission does not apply to an early disclosure to the charging party, the respondent, witnesses, counsel, and representatives of interested agencies. In itself, this disclosure could be sufficient to eliminate the effective protection of the right of privacy. In addition, if the HRC certifies a case for public hearing, then it is up to the Commission to decide the extent and nature of the information to be given at the public hearing. We do not find this regulation to be an adequate protection of the right of privacy.
We are aware that clamping too tight a lid on the HRC’s freedom to disseminate the information obtained from respondents establishes yet another constitutional conflict.
In Kuiper v. District Court (1981), Mont., 632 P.2d 694, 696-698, 38 St.Rep. 1288, 1290-1292, this Court reversed a District Court order forbidding use of certain documents already in the possession of the appellant “for any purpose whatsoever,” finding the order unconstitutionally proscribed appellant’s freedom of expression. We agreed that First Amendment protection extended to litigation and to the fruits of discovery, 632 P.2d at 698, 38 St.Rep. at 1291, and agreed with Judge Bazelon in In re Halkin (D.C.Cir.1979), 598 F.2d 176, 186, that while a protective order is not automatically a prior restraint, “the fact that [it] poses many of the dangers of a prior restraint is sufficient to require close scrutiny of its impact on protected First Amendment expression.” 632 P.2d at 697, 38 St.Rep. at 1291. We referred to the three-prong test used in Nebraska Press Ass’n. v. Stuart (1976), 427 U.S. 539, 96 S.Ct. 2791, 49 L.Ed.2d 683, and Halkin, supra, requiring the court to find that the harm posed by dissemination is substantial and serious, the restraining order is narrowly drawn and precise, and there is no less intrusive alternative means of protecting the public interest.
In Mountain States Telephone & Telegraph Company v. Department of Public Service Regulation (1981), Mont., 634 P.2d 181, 38 St.Rep. 1479, this Court issued a protective order to prevent the public disclosure of “trade secrets” which the Court held could be obtained by the agency during its investigation. The broad rationale applies to this case: During an appropriate investigation, the agency is entitled to all pertinent information possessed by an entity subject to its regulating power; when the public right to know collides with that entity’s right to protect certain private information, a balancing of rights is necessary; a protective order may be fashioned which allows the agency the “fullest available information,” while providing the public with “all information required to enable citizens to determine the propriety of governmental actions affecting them.” We relied upon Pennzoil Co. v. Federal Power Commission (5th Cir. 1976), 534 F.2d 627, 631:
“Implicit in [F.C.C. v. Schreiber (1965), 381 U.S. 279, 85 S.Ct. 1459, 14 L.Ed.2d 383] is the proposition that the balancing of the public and private interests might compel secrecy. . . Therefore, in reviewing this case we must likewise determine whether the Commission abused its discretion in balancing the public and private interest.” 634 P.2d at 187, 38 St. Rep. at 1485.
We found that the District Court’s failure to protect the trade secrets was improper because a satisfactory balancing of interests could have been achieved, and we issued a directive for a protective order. The order allowed full disclosure to the PSC and sought to limit the release of private information by “provisions which protect the confidentiality of the trade secret information” 634 P.2d at 187, 38 St.Rep. at 1485-1486.
In the case at bar, much of the problem with restricting dissemination by the HRC, or public access to the information in the disputed personnel files, lies in the fact that some of that information is undoubtedly neither sensitive nor private information, and, if viewed apart from the more damaging information, as it must be if a protective order is to be narrowly drawn, is neither subject to the protection of the privacy right, nor particularly relevant to the investigation at hand.
We conclude that the needs and rights of the parties and the persons whose files are sought, as well as the general public, are best met by allowing broad discovery to the HRC, but restricting the release of information which suggests the identity of employees whose files may be used in investigating the alleged discriminatory practices by repondents. We therefore direct the District Court to prepare an order requiring respondents to furnish the requested in formation to the HRC, but providing that the HRC shall not disclose the information to any individual, agency or party (other than respondents) outside of the HRC except under the following circumstances:
(1) In the event that the HRC deems it necessary to hold a public hearing on the alleged discriminatory practices, or to disclose the information to anyone outside the HRC (other than respondents), it shall protect the privacy of any person^) as to the elements of such information by altering the information to provide for the anonymity of the person^) involved. This will include the elimination of name, specific ethnic designations and other classifications which reasonably might allow identification of the person (s) whose privacy right is to be protected; except that
(2) In the event that the HRC determines that the release of information reasonably subject to a right of privacy claim is required in a way which may disclose the identity of person (s) involved; then prior to the release of that information the HRC shall obtain from the District Court a further order of authorization and protection.
The orders of the District Court shall provide that failure by the HRC or other persons or agencies to whom the information is released to comply with the above order(s) shall make the offending party subject to contempt proceedings.
We suggest to the legislature that it consider legislation similar to 42 U.S.C. §2000e-8(e) which would protect the right of privacy by fines and penal sanctions.
We vacate the judgment of the District Court and remand to the District Court for such further proceedings, including the entry of a protective order, as are required under this opinion.
MR. CHIEF JUSTICE HASWELL and JUSTICES HARRISON, DALY, SHEA, MORRISON and SHEEHY concur.
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MR. JUSTICE HARRISON
delivered the Opinion of the Court.
Plaintiff-appellant, Russell E. Weston, Jr. (Weston), appeals a District Court order dismissing his law suit against defendant-respondent, Dorothy Cole (Cole). The order was entered in the Fifth Judicial District, Jefferson County, by the Honorable Frank M. Davis. We affirm.
On October 23, 1986, Weston filed a law suit against Cole alleging she struck him in the head with a cane. Specifically, the complaint alleged:
“[defendant without cause or provocation . . . unlawfully assaulted and battered plaintiff by then and there striking plaintiff with her cain [sic] in the head, which blow was struck without warning and while plaintiff was unprepared to fend off said blow.”(Emphasis added.)
The complaint alleged the assault occurred “on or about October 30, 1983.” Subsequently, Cole filed a motion to dismiss alleging, among other things, that the statute of limitations applicable to Weston’s alleged cause of action had expired. The motion was argued October 28, 1987 and the District Court filed an order granting the motion to dismiss December 21, 1987. The District Court found that the applicable statute of limitations for Weston’s claim was two years, according to Section 27-2-204(3), MCA. Since it was undisputed that Weston filed his complaint nearly three years after the incident, the cause of action was dismissed.
On appeal, Weston raises two issues:
1. Did the District Court implement the correct statute of limitations?
2. Based on general principles of equity, should the statute of limitations have been tolled during the time period that Weston was living outside Montana?
APPLICABLE STATUTE OF LIMITATIONS
Section 27-2-204, MCA, states:
“(1) The period prescribed for the commencement of an action upon a liability not founded upon an instrument in writing is within 3 years.
“(2) The period prescribed for the commencement of an action to recover damages for the death of one caused by the wrongful act or neglect of another is within 3 years.
“(3) The period prescribed for the commencement of an action for liable, slander, assault, battery, false imprisonment, or seduction is within 2 years. (Emphasis added.)”
Weston asserts the three year period stated in subsection (1) should apply, rather than the two year period specified in subsection (3). He makes this argument by alleging that he intends to prove simply an “unlawful act” instead of an intentional tort. Weston states that Cole was incompetent and could not form the necessary intent for an assault action in any event. Therefore, he concludes that the true intent of his complaint was to simply allege that Cole committed an unlawful act which damaged him.
Weston’s complaint however, could not be more clear. It states that Cole unlawfully “assaulted and battered” Weston. The complaint asserts Cole committed an assault and battery, and no additional or alternative claims are presented. In determining which subsection of Section 27-2-204, MCA, to apply, the following statutory provision is helpful:
“1-2-102. Intention of the legislature — particular and general provisions. In the construction of a statute, the intention of the legislature is to be pursued if possible. When a general and particular provision are inconsistent, the latter is paramount to the former, so a particular intent will control a general one that is inconsistent with it.”
Although a strict reading of Section 27-2-204, MCA, may present some conflict between subsections (1) and (3), the intent appears to have been to establish a general three year statute of limitations for tort actions, with a shorter two year period for certain particular tort actions such as assault and battery. We find that the District Court implemented the correct statute of limitations by invoking the two year period set forth in Section 27-2-204(3), MCA.
TOLLING OF THE STATUTE OF LIMITATIONS.
As a second argument, Weston asserts that general principles of equity should have tolled the statute of limitations for a twenty month period in which he was absent from this state. Weston cites virtually no authority supporting this argument. His position rests on the allegation that Cole developed a special relationship with the local sheriff by giving him, or selling to him at a drastically low price, a significant amount of mining equipment. As a result, Wes ton claims the local authorities ignored his criminal complaint and he was subsequently denied monetary relief through the Crime Victims Compensation Fund. Weston states he was unable to work due to the injuries he sustained and that he had no monetary resources. This situation forced him to move to Illinois where he resided with relatives. He was absent from the state for approximately twenty months and claims equitable principles dictate that the statute of limitations should be tolled during that period.
Weston cites no authority directly supporting his position. By analogy he cites Section 27-2-402, MCA, which states:
“When defendant is out of state. When the cause of action accrues against a person who is out of the state and cannot be served with process, the action may be commenced within the term herein limited after his return to the state; and if after the cause of action accrues he departs from the state and cannot be served with process, the time of his absence is not part of the time limited for the commencement of the action.”
Weston asserts that this statute creates a situation where “defendant’s absence from the state estops him from relying on the statute of limitations for that period of time in which he was absent from the state.” Weston states a reverse situation exists in this case because Cole effectively forced him to leave the state. Weston concludes that “equity and good conscience should not permit defendant Cole to rely on the twenty months that plaintiff Weston was in Illinois recovering from his injuries.”
The District Court filed a memorandum accompanying its order of dismissal and correctly noted that there was simply no authority supporting Weston’s argument. Weston seems to be making an equitable estoppel argument by asserting the defendant Cole should not be allowed to take advantage of Weston’s delay,, when she in fact caused that delay. See generally, City of Billings v. Pierce Packing Co. (1945), 117 Mont. 255, 266-267, 161 P.2d 636, 641. However, there is insufficient evidence in the record to demonstrate that Cole affirmatively induced the delay.
For the foregoing reasons, we affirm the decision of District Court.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES SHEEHY, McDONOUGH and GULBRANDSON concur.
|
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MR. JUSTICE MORRISON
delivered the opinion of the Court.
This is an appeal by husband of the October 29, 1981, judgment and decree of the Eighteenth Judicial District Court distributing the property of the parties. We affirm.
Ronald and Dolores Hecht were married October 25, 1968. They resided in Shelby, Montana, for four years before moving to West Yellowstone. Respondent taught school in Shelby for three years. After moving to West Yellowstone, she assisted in the office of her husband’s plumbing business. She also operated a dog grooming business the last two years of the marriage.
Respondent’s parents financed the purchase of a lot and building in West Yellowstone for appellant’s plumbing business. Respondent contributed $1,000 cash toward that purchase. A later contribution from respondent enabled the parties to borrow $20,000 to build a shop and store building on their land. They also purchased and resided in a mobile home. The later contribution of $4,737 came from re-pondent’s teachers’ retirement fund and the sale of her cattle.
The parties separated in December 1979. Respondent returned to her parents’ home in Dillon. Appellant remained in the mobile home in West Yellowstone and continued operating the plumbing business.
A decree of dissolution dissolving the parties’ marriage was issued February 19, 1980. That decree stated that the property division dispute would be subsequently heard. It also ordered appellant to pay respondent “as maintenance and support the sum of five hundred fifty and no/100 dollars ($550.00) per month starting on the 20th day of February, 1980, and monthly thereafter until September 20, 1980.” Respondent used those funds to return to college and reinstate her teaching certificate. She has been unable to obtain a teaching position and currently works as a book keeper in Dillon for $3.50 an hour. Appellant earns approximately $25.00 an hour. Both parties are approximately forty-three years old.
In its findings of October 19, 1981, the District Court determined the property of the marriage to consist of the following:
1.Lot 5, Block 7, West Yellowstone. Montana:
Value of Land $30,000
Value of Improvements 28,000
$58,000
First Mortgage $13,000
Second Mortgage 21,000
$34,000
Net Equity $24,000
2. Peerless Mobile Home $12,000
3. Hecht Plumbing and Heating Inventory, including vehicles $12,000
4. Pontiac Automobile $ 6,000
5. Hebgen Lake Lot: Value of Land $12,000
Balance Due on Contract $ 8,000
Net Equity $ 4,000
6.Miscellaneous Property and Collectibles $ 3,736
Respondent was awarded the lot in West Yellowstone, together with all improvements; the Peerless mobile home; the Hebgen Lake lot; the Pontiac station wagon; and all furniture and collectibles taken in her possession. Due to her “real potential of securing a teaching position”, respondent was awarded no maintenance.
Appellant was awarded the Hecht Plumbing and Heating inventory, the business vehicles; and all furniture and guns then in his possession. This apportionment left husband with approximately one-fourth of the marital assets.
Appellant filed a motion to amend and supplement findings of fact and conclusions of law and judgment on November 9, 1981. Appellant’s motion was summarily denied November 19, 1981. He now appeals both the judgment and the order denying his motion to amend.
The issues presented to us on appeal are:
(1) Did the District Court act arbitrarily and abuse its discretion when it divided the parties’ marital property?
(2) Did the District Court err in arriving at its findings of fact and conclusions of law by misstating the value of the marital assets?
This appeal centers around the value of the assets awarded each party and appellant’s desire to have the property divided equally between the parties. We grant great deference to the District Court’s resolution of property division in marital dissolutions. Jerome v. Jerome (1978), 175 Mont. 429, 574 P.2d 997. The judgment of the District Court will only be disturbed where there is a clear abuse of discretion resulting in substantial injustice. Creon v. Creon (1981), Mont., 635 P.2d 1308, 38 St.Rep. 1828.
The District Court did not act arbitrarily. Rather, the District Court followed the statutory guidelines for disposition of marital property set forth in section 40-4-202, MCA. That section does not require equal distribution of assets between the parties. It does require the court to consider such things as the duration of the marriage, and “the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities, and needs of each of the parties ...” The District Court did so.
The District Court noted that respondent gave up a teaching career in Shelby when her husband established a plumbing business in West Yellowstone. It also considered respondent’s financial and time contributions to the plumbing business. Both parties’ present incomes as well as their potential future incomes were considered.
In addition, the financial values placed on the various properties were reasonable and supported by independent appraisal. The District Court appears to have considered all encumbrances as well as the amount owing on the Hebgen Lake property contract. All martial assets were valued and a net worth, though not specifically referred to, can easily be determined from the court’s findings on asset values and existing encumbrances. We find the apportionment, though granting more equity to wife than to husband, to be within the court’s discretion.
The judgment is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEA concur.
|
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
L.Y.R., the respondent parent, appeals from the order of the District Court, Twelfth Judicial District, Hill County, Montana, denying respondent’s motion for a new trial and from the original order entered in the District Court on January 12, 1977, declaring M.D.Y.R. a neglected youth in need of care and awarding her to the care, custody and control of the Department of Social and Re habilitation Services of the State of Montana with lawful authority to consent to her adoption.
M.D.Y.R. (hereinafter “child” or “baby girl”) was born on May 24, 1975. Her mother is L.Y.R.; no father is named in the child’s birth certificate. L.Y.R. had been divorced from J.Y.R., the putative father of the baby girl, on December 12, 1974. In the divorce proceedings the father was awarded the custody of the three children who had been born to his marriage with L.Y.R. and also three older children of L.Y.R., whom the husband had adopted during the marriage.
Following the divorce and until the time of the birth of the child, L.Y.R. resided with her mother. During her pregnancy, L.Y.R. was in contact with social workers of the Hill County Welfare Department and had indicated to them her interest in having an abortion and her concern about her ability to keep the baby after it was born.
When the child was born, L.Y.R. moved into an apartment of her own. and for the first few weeks gave adequate care and attention to the baby. She received benefits under the Aid to Dependent Children program and was in contact with workers from the Hill County 'welfare department. In mid-June she became nervous and depressed for which conditions her social worker offered her counseling and mental services and arranged for her to attend a class in child care. L.Y.R. dropped out of the child care class after attending once or twice.
On September 7, 1975, a Sunday, the social worker called at L.Y.R.’s apartment and found that L.Y.R.’s daughter, P., was caring for the child. Earlier that day friends of L.Y.R. had come to her apartment. They and L.Y.R. had started drinking after which L.Y.R. left with her friends, telling P. that she would be back soon. P. was upset and worried when the social worker arrived. Checking later that afternoon, the social worker learned that L.Y.R. had not returned. The social worker made arrangements to place the child in á foster home. Although L.Y.R. was in contact with P. that evening, she did not get in touch with the social worker until the second day following. L.Y.R. was not ready to take the baby girl back immediately and September 12 was scheduled for the baby’s return. However, the return of the baby did not occur until September 15, because L.Y.R. in the meantime had been arrested and held for shoplifting a small amount of food in a grocery store.
On October 2, 1975, the social worker, checking again, found the child in the care of the grandmother, M.C., the mother of L.Y.R. The grandmother at the time was a 67 year old blind and although able to take care of herself and capable of caring for a small baby in her apartment, the grandmother had been left without an adequate supply of diapers and clothing for the child. The grandmother did not know where L.Y.R. was or how long she might be gone. At the grandmother’s request, the social worker took custody of the child and again placed her with foster parents.
On the following day, October 3, 1975, the social worker met with L.Y.R., who was advised by her that the Department of Social and Rehabilitation Services of the State of Montana (“SRS”) was going to petition the court for temporary custody of the child. On this occasion L.Y.R. agreed with the social worker on a program of betterment which would include (1) finding an apartment of her own, (2) taking treatment for her drinking, and (3)establishing and maintaining a relationship with the child through visitation at the foster home.
The petition for temporary custody and declaration that the child was neglected was filed by SRS on October 6, 1975. Hearing on the petition for temporary custody was delayed, however, because L.Y.R. had gone to Great Falls. On November 26, 1975, the District Court made an order awarding custody of the child to SRS for a period of six months. At the same time L.Y.R. agreed to a six month program covering the betterment program already mentioned and including an effort by her to find employment.
At the hearing of November 24, 1975, L.Y.R. was not represented by counsel nor was an attorney appointed to represent the child. During the hearing the District Court advised L.Y.R. that she could have a lawyer represent her if she wanted one at that time, but L.Y.R. advised the court that “Legal Services wouldn’t represent her”. However, the District Court determined that since this was a petition for temporary custody, the District Court did not feel it had authority to appoint an attorney for the mother. The court advised the mother that if at any stage of the proceedings her rights as a parent would be finally terminated and the mother wanted an attorney, under those circumstances the court would appoint such an attorney. With that statement the hearing for temporary custody proceeded to its finish, and on December 1, 1975, the court entered its order granting SRS temporary custody of the child.
From December 1975 to April 1976, the social worker had frequent contacts with L.Y.R. who obtained employment and worked for two months. She quit work on April 2, 1976, because her back was bothering her. While she was employed, L.Y.R. maintained frequent visits with the child, but her visits were less regular when she was not employed. By the end of May 1976, L.Y.R. was still not ready to take over the full care of the child,- and so she signed a parental agreement extending foster care for 30 additional days. During that period she represented to the sociah worker that she had obtained a job and an apartment when in fact she had neither. She then signed another 30 day extension of the foster care agreement. When she had neither job nor apartment at the end of the extended period, SRS determined to file its petition for permanent custody on August 12, 1976, upon L.Y.R.’s refusal to sign any further extension for foster care of the child.
Upon the filing of the petition for permanent custody by SRS, and its petition that SRS be given authority to assent to adoption of the child, the court ordered a hearing on the petition requiring the legal father and the natural mother of the child to appear personally to attend the hearing.
On August 27, 1976, hearing on the petition for permanent custody was held. SRS was represented by the deputy county attorney of Hill County. L.Y.R. and her former husband J.Y.R. appeared pro se. Before the hearing started, the District Court asked both the father and the mother if they understood they could be represented by a lawyer should they want to contest the proceedings. Both indicated to the District Court at that time that they understood they had that right but that they were ready to proceed with the hearing. Thereupon the hearing was commenced, and two witnesses were called, one a representative of SRS and the second the putative father, J.Y.R. The third witness was the mother, L.Y.R., who when she began to testify immediately asked the court for a postponement of the hearing on the ground that she had consulted a Havre attorney but was having difficulty financially to meet the fee arrangements, and she stated that the attorney had advised her to ask the court to postpone the hearing. The District Court determined from the deputy county attorney that no request for a postponement had come from the other attorney, although there had been some contact by the attorney with the deputy county attorney about L.Y.R. and her case. Nevertheless, the District Court proceeded with the hearing, allowing the further examination of L.Y.R., the testimony of P.Y.R., a sister of the child, and of another woman with whom J.Y.R. was living at the time. Thereupon the hearing was continued with a comment by the District Court that it would satisfy itself on the question of the Havre attorney’s representation of L.Y.R. and when that had been cleared up the hearing would either be resumed or thé custody matter would be deemed submitted to the court for decision.
On September 15, 1976, James W. Spangelo, a Havre attorney, appeared as counsel for respondent L.Y.R. and moved to quash and dismiss the petition for permanent custody filed by SRS. Mr. Spangelo was not the attorney L.Y.R. had mentioned on August 27.
On November 24, 1976, the District Court entered its order granting the motion to vacate the order for temporary custody entered on December 1, 1975, and to set the same aside. It further ordered the petition for permanent custody to be heard by the court without a jury on December 10, 1976. However, the hearing was held before the court on December 13 and 17, 1976, at which hearing the mother was represented by Mr. Spangelo. Again, no attorney was appointed to represent the interests of the child at this hearing.
Following the hearing, the District Court received proposed findings of facts and conclusions of law, and on January 10, 1977, entered its findings of fact and conclusions of law to decide the case. Based on those findings, on January 12, 1977, the court determined that the baby girl was a youth in need of care and neglected or abused within the meaning of section 10-1301; R.C.M.1947, and that the best interests would be served by declaring the youth in need of care and awarding her to the care, custody, and control of SRS with lawful authority in SRS to appear in court and consent to her adoption.
In its findings the District Court determined that after the filing of the petition for permanent custody, SRS regulations prevented the mother from visiting with the child unless someone from the welfare department was present. Since August 12, 1976, the mother had not visited nor made any requests to visit with the child, giving as her reasons her belief that the child was receiving good care and her feeling that the presence of a social worker at the visits would make her feel uncomfortable. During 1976 the mother lived for a few months with another man, but at the time of the hearing had moved into an apartment of her own and had been working for about a month.
The court further found that prior to the birth and up to the time of the hearing the mother had had a drinking problem but that she had not followed through with any program of counseling or treatment and that she was subject to disturbing factors, including her divorce and pregnancy, the death of her sister in June 1975, and a continuing pressure or fear of pressure from her former husband, J.Y.R. She was subject to spells of extreme depression. She was unable or unwilling to carry through with plans or programs designed to help her to function as an adequate mother and had not demonstrated an ability to provide a stable home situation. The court had vacated the order of temporary custody entered on December 1, 1975, for the reason that no counsel had been provided to L.Y.R. for that hearing, but the child had continued to be in the custody of SRS throughout the proceedings for permanent cus tody upon the agreement of the mother that such custody be continued.
The court determined that the mother was unable to provide an adequate physical and emotional environment to promote the normal development of the child and that she was, even with state aid and assistance, unable to discharge the responsibilities and duties necessary for the subsistence, education, medical and other care required for the child’s physical, moral and emotional well being.
On February. 9, 1977, Mr. Spangelo withdrew as counsel for L.Y.R., and Montana Legal Services Association appeared to represent the.respondent mother. New counsel moved the District Court for a reconsideration or a new trial which was by the court denied. Thereafter, the appeal ensued as we have above related.
On appeal the respondent mother, L. Y.R., is represented by Montana Legal Services Association, through its attorney. She raises these issues for review:
1. Is the initial temporary custody hearing in a dependency and neglect proceeding a crucial and formative stage of the proceeding so that an indigent parent should have the right to court appointed counsel under the due process or equal protection clause?
2. As applied to the facts of this case, was it reversible error for the trial court to fail to appoint counsel for the indigent mother pursuant to section 10-1310(12), R.C.M.1947, for the intitial custody hearing?
3. Did the trial court deny the child, M.D.Y.R., due process of law by failing to appoint independent counsel to represent her?
Also appearing on appeal, on behalf of the child, is the National Juvenile Law Center, Inc. of St. Louis, Missouri, through its staff counsel and local counsel. They also raise the issue that a child is denied due process of law in proceedings to determine parental rights when the court failed to appoint independent counsel to represent the child in those proceedings.
It is argued on behalf of the respondent mother that the requisites of procedural due process are particularly stringent because of the fundamental rights at stake in this cause; and that denying the mother her right to counsel at the temporary custody hearing caused specific prejudice to her right and interests at a formative stage in the ligigation. It is further argued on behalf of the mother that the equal protection clause required the appointment of counsel for her at all stages of the proceeding, including the proceeding for temporary custody and finally that due process of law was denied by failing to appoint independent counsel for the child.
In the same manner, counsel for the child argued the child is denied due process in proceedings to terminate the parental rights when the court fails to appoint independent counsel to represent the child; that determination of parental rights involves a fundamental liberty interest of the child within the meaning of the due process clause; that the necessity of counsel to represent the child is as great as is the necessity for counsel in criminal proceedings; and appointed counsel is necessary since no other party to the proceedings can truly represent the best interests of the child.
Counsel for SRS answers these arguments by stating that lack of counsel for the mother at the temporary custody hearing does not constitute reversible error here because the court did in fact vacate the order issued for temporary custody; that her rights were not violated under the equal protection law by the failure to provide counsel for her at the temporary hearing; that it was not reversible error for the trial court not to appoint counsel under section 10-13-10(12), R.C.M.1947, at the temporary hearing; and that the child was not denied due process because the court did not appoint independent counsel for the child.
All of the stated issues boiled down to these two questions:
1. In this case, did the lack of appointed counsel to represent the mother at the temporary custody hearing eventually operate to deprive her of due process?
2. Did the lack of appointed counsel to represent the child individually at all stages of the proceeding deprive the child of due process or the equal protection of the law?
We first look to. the situation involving the mother. To do this we examine the factual background that faced the District Court at the time that it was presented with the petition for the temporary custody of the child. After all, legal principles of constitutional quality do not exist in a vacuum. They exist for application to facts, and it is, in the final analysis, the factual situation that determines whether constitutional rights have been violated.
The first hearing occurred, as we have said, on November 24, 1975. A petition had been filed by SRS asking for temporary custody of the child for six months. In the progress of the hearing it was developed that the child had been left with her sister, P., as we have earlier described on September 7, and from that time until the first week in October- agents of the SRS were working with the mother trying to resolve some of the problems that were arising in connection with this small infant. From September 7 until October 2, the agent was seeing the mother regularly talking to her about child care classes, programs to overcome her alcoholism, and what could be done about getting her employment. Apparently, the only income the mother had was the money received by her under the Aid to Dependent Children program. On October 2, the SRS agent found that the mother had left the child with a blind grandmother the night before and the blind grandmother, although willing otherwise was not a suitable person to take care of the child because she could not see to place diapers upon the child nor to prepare food except from cans of formula. It was not a satisfactory situation for the child and so the SRS worker immediately aranged to have the child placed in foster care. This occurred on October 2, 1975. Nothing further was heard from the mother for a period of five days and when she did contact the SRS worker, it was learned the mother had been in Great Falls with friends for the period she was missing. The SRS then proposed that temporary custody be granted to it and in the meantime a program be developed as described above for the rehabilitation of the mother so as to make the home situation for the infant more suitable and stable. It was also the plan of SRS if during the six month period sufficient progress had been made, to return the baby to the mother and away from the foster care.
In any case involving a neglected child, the courts is faced with the choice of depriving the natural mother of the custody of the child if it might be better for the child to be placed in foster care. While that choice might present a dilemma for the court in some cases, in this case it was a dilemma with one horn. Under the factual situation presented, the court had absolutely no alternative but to award the temporary custody to the child to SRS so that under foster care she would have at least the creature comforts, if not the love and affection that the natural mother could provide.
Section 10-1310( 10)(b) authorizes a petition for temporary legal custody. In section 10-1310(12), it is provided that the court may at any time on its own motion or the motion of any party appoint a guardian ad litem for the youth or counsel for any indigent party. It is contended on behalf of the mother that in this case, at the hearing for temporary legal custody, it should have been mandatory that the court appoint counsel to represent the mother. The statute, however, is not couched in mandatory language, and statutorily at least we must say that the matter of appointment of counsel, whether for temporary or permanent legal custody, is left to the discretion of the court. Moreover, under case law touching on this point, this Court has held that the appointment of counsel in a proceeding such as involved here is discretionary with the District Court, at least as far as the child is concerned. In the Matter of Inquiry into J.J.S. (1978), 176 Mont. 202, 577 P.2d 378; In the Matter of Guardianship of Gullette (1977), 173 Mont. 132, 566 P.2d 396; Stubben v. Flathead County Dept. of Public Welfare (1976), 171 Mont. 111, 556 P.2d 904.
In Cleaver v. Wilcox (9th Cir. 1974), 499 F.2d 940, the court of appeals considered the same problem. There, the court had before it the provisions of the California statute under which a child who is found to be “dependent” may be subjected to limited control or removed from the custody of his parents for an indefinite time, subject to periodic review. The plaintiffs, indigent parents of children involved, contended the state court was required to appoint counsel for them in such proceedings. The court noted the due process factors involved, but refused to impose mandatory appointment of counsel for indigent parents upon the state court stating:
“This court does not believe it necessary to impose upon an excellent state-court system an infelxible constitutional rule which requires appointed counsel in every dependency proceeding. Rather, we believe that the class members'can be fully protected by a statement of due-process principles in the form of a declaratory judgment. Parents are entitled to a judicial decision on the right to counsel in each case. The determination should be made with the understanding that due process requires the state to appoint counsel whenever an indigent parent, unable to present his or her case properly, faces a substantial possibility of the loss of custody or of prolonged separation from a child. Application of these guidelines can and should be made by the state courts on a case-by-case basis.” (Emphasis supplied.) 499 F.2d 945.
In Gullette we held in a guardianship proceeding that when the custody of a child is in serious dispute, the court should either appoint independent counsel for the child or make a finding stating the reasons that such appointment was unnecessary. 566 P.2d at 400. Since Montana is within the area of jurisdiction of the United States Court of Appeals for the Ninth Circuit, and since it is appropriate that state rules respecting due process principles be in harmony with the federal rules on the same subject, in the same area, we hold the rule in Cleaver v. Wilcox, supra, applies in this jurisdiction: Where indigent parents are involved in dependency proceedings, the District Court shall make a judicial decision in each case as to whether such parents are entitled to counsel appointed by the court whenever the indigent parent, unable to present his or her case properly, faces a substantial possibility of the loss of custody or prolonged separation from the child. The factors which the District Court may consider in determining whether to appoint such counsel will vary from case to case but should the District Court refuse a request for counsel, the grounds for refusal must be stated in the record so that meaningful judicial review of the refusal can be had. Cleaver, 499 F.2d 945.
Having declared the applicable rule, we turn again to the facts of this case to determine whether counsel should have been appointed for the mother at the time of the hearing for temporary custody. The proposal of SRS at the time for temporary custody was just that: temporary. It had outlined a program to aid the .mother, and to encourage her to help herself; the mother was to have liberal rights to visitation with the child and it was even indicated that custody would not be held for six months if it appeared earlier that the mother’s situation had improved to the point where the child would not be neglected. While the District Court did not make findings along that line in refusing counsel, by the same token, the rule requiring such findings had not been declared by us until now. It is clear from the record the mother was not necessarily opposing the proposal of SRS and most certainly the proposal was in the best interest of the child. Moreover, even if the District Court had committed error on this point, and we do not believe so, it would be too late to cure it now.
It is further to be noted from the statement of facts which we have set forth hereinabove, that the mother’s situation did not noticeably improve during the period that the temporary custody order was in effect, and self-help by the mother was particularly lacking. It does not appear from the record that at any stage in the period of the temporary custody that the mother was in a situation where the child could be returned to her with a reasonable expectation that the child would not be neglected. Moreover, when the mother was represented by counsel, and motion was made to dismiss and vacate the order of temporary custody, that order was by the court granted.
However, it is argued further on behalf of the mother that had the court in fact not deprived her of custody under the temporary order, her situation at the time of the hearing on the permanent deprivation of custody would have been different, particularly insofar as her relationship with her child was concerned. This maybe, but it is entirely speculative. When the court conducted a hearing for permanent custody, at a time when the mother was in fact represented by counsel, it appears again clear the District Court had no choice under the facts presented but to grant permanent custody of the child to SRS.
It cannot successfully be contended the mother was deprived of due process or equal protection of the law at the time of the hearing for permanent custody. She was represented by competent counsel, and the facts adduced at the hearing fully support the decision of the District Court to award the child’s custody to SRS. As we stated in In re Gore (1977), 174 Mont. 321, 570 P.2d 1110, the primary duty of deciding the proper custody of children is a task of the District Court and therefore, all reasonable presumptions as to the correctness of the determination by the District Court will be made on appeal. The District Court findings will not be disturbed unless there is a mistake of law or a finding of fact not supported by credible evidence that would amount to a clear abuse of discretion. Solie v. Solie (1977), 172 Mont. 132, 561 P.2d 443. We hold that the finding of the District Court that SRS was entitled to the permanent custody of the child, with the right to consent to her adoption, was proper and fully supported by the evidence.
We turn now to that portion of the case which relates to whether the child itself was entitled to be represented by counsel, independent of counsel for the mother, and whether the child in this case was deprived of due process or the equal protection of the law.
In denying the motion for new trial on that ground, the District Court stated:
“The Court now finds that [M.D.Y.R.] at all times during these proceedings has been and now is an infant of tender years, whose immaturity rendered and does now render her incapable of having or communicating her personal view as to how her best interests would be served herein, and further finds that counsel appearing before the Court have diligently sought to bring out for the Court’s consideration all evidence bearing on the child’s welfare, and that there is nothing before the Court to show that independent counsel for the child would have been able to produce additional evidence or otherwise benefit the child during the proceedings held to date, and that no sufficient grounds for the granting of the motion have been shown.”
While the District Court did not make findings as suggested in the decision in Gullette and In the Matter of Inquiry into f.f.S., supra, nevertheless the determination by the court stating its reasons in its order denying the motion for new trial constitutes a “judicial decision” within the meaning of Cleaver. Moreover, the factual situation in this case is practically in complete agreement with what this Court said in In the Mutter of Inquiry into J.f.f.:
“* * * Further, the rule is that the appointment of counsel is only necessary when the child needs an advocate to represent his position as to the issues in dispute or to ensure the development of an adequately complete record concerning the best interests of the child. In the Matter of D (1976), 24 Or.App. 601, 547 P.2d 175. Neither of those situations are present here. The minor child was too young to have any position on the issues and the record of the hearing is adequate to determine the best interests of the child. The District Court did not abuse its discretion in not appointing counsel for the child.” 577 P.2d 381.
In line with what we have said foregoing respecting the rights of an indigent parent to counsel, we hold that the requirements of due process and equal protection of the laws do not require us to interpret section 10-1310(12) as to require in every case the appointment of counsel for the youth or child in dependency-neglect cases. In the same manner as for the parent, the rights of the child can be fully safeguarded if, on a case-to-case basis, the District Court makes a judicial decision as to whether the facts in each particular case require the appointment of counsel for the child. Again, should the judge refuse the request for counsel, the grounds for such refusal shall be stated in the record so that a meaningful judicial review of the refusal can be had.
This Court is not insensitive to the needs of indigent persons faced with complex litigation who may have no degree of expertise in the handling of judicial proceedings. Nothing in this record, however, indicates to us that the result in any of the proceedings before the District Court would have had a different ending if counsel had been appointed for the mother and the child at all stages of the proceedings. There simply is not here a state of facts upon which a cause celebre can be made. While ordinarily counsel are most helpful to litigation, it may well be that the intrusion of counsel in this case has prolonged rather than lessened the problems involving this child. The debate on esoteric constitutional principles of due process and equal protection that in the final analysis do not apply here has taken one and one-half years. Meanwhile, this child is languishing in foster home care, and no steps have been taken to provide her with a stable, permanent home environment at a critical period in her formative years. She has received due process; but she is being unduly processed. It is for that reason that we advanced this cause on the calendar for oral argument and have expedited this opinion.
Affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, HARRISON and SHEA concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
The appellants, Lawrence Nachtsheim and the Department of Administration, appeal from the Judgment and Peremptory Writ of Mandate entered by the District Court of the Eleventh Judicial District, Flathead County, which directed the appellants to divide Highway Patrol Retirement System (HPRS) benefits and pay one- half of those benefits directly to the respondent, Patricia Neuhausen, in accordance with a decree of dissolution of marriage. We reverse and remand.
The dispositive issue on appeal is whether the appellants have a clear legal duty to pay HPRS benefits directly to the respondent.
On August 14,1990, the marriage between HPRS member Martin Neuhausen and Patricia Neuhausen was dissolved by entry of a Final Decree of Dissolution in Flathead County Cause No. DR-88-533(A). Pursuant to the decree, HPRS administrators were directed to issue two checks each month in payment of Martin’s disability retirement benefits. One check, representing one-half of the benefits, was to be paid directly to Martin; the second check was to be issued directly to Patricia.
Subsequent to the August 14, 1990 dissolution decree, Patricia’s former attorney contacted the Public Employees’ Retirement Division (Division) of the Department of Administration to arrange for the issuance of two drafts on the HPRS pension fund account in accordance with the terms of the dissolution decree. The Division’s administrator, Lawrence Nachtsheim, refused to issue separate checks, asserting that the Division was statutorily prohibited from making such a disbursement.
On November 30, 1990, an Amended Final Decree of Dissolution was entered which also contained provisions to divide Martin’s disability retirement benefits and for the issuance of separate checks. On March 11, 1991, the Division received correspondence from Patricia’s present attorney demanding conformity with the Amended Final Decree of Dissolution. The Division refused, again asserting that it had no legal authority to make a divided distribution of a member’s HPRS disability retirement allowance.
On March 13, 1991, Patricia filed an application for writ of mandate in the District Court to compel the Division to make distributions of Martin’s disability retirement benefits in accordance with the dissolution decree. On April 9, 1991, the court held a show cause hearing in which the parties argued the propriety of the writ. That same day, the District Court issued its Judgment and Peremptory Writ of Mandate ordering Lawrence Nachtsheim and the Department of Administration, Public Employees’ Retirement Division, to immediately execute a draft upon the account of the HPRS pension fund for all amounts due Patricia since August 14, 1990 under the terms of the original dissolution decree and to issue subsequent drafts payable to her as the benefits periodically come due thereafter. The court also awarded the respondent $1,500 in attorney’s fees and $220 in costs.
On April 16, 1991, the Division paid to Patricia one-half of all benefits that accrued to Martin from August 14,1990 to that date in compliance with the writ of mandate. In addition, the Division has continued to pay one-half of the accrued benefits to Patricia as they come due. This appeal was filed on June 14,1991.
Do the appellants have a clear legal duty to pay HPRS benefits directly to the respondent?
The granting of a writ of mandate is a discretionary act which will be upheld absent a showing that the district court abused its discretion. Hovey v. Dep’t of Revenue (1983), 203 Mont. 27, 34, 659 P.2d 280, 284. The writ will lie where the party seeking to invoke it is entitled to the performance of a clear legal duty by the party against whom the writ is directed and there is no speedy and adequate remedy in the ordinary course of law. Section 27-26-102, MCA; State ex rel. Galloway v. City of Great Falls (1984), 211 Mont. 354, 358, 684 P.2d 495, 497. However, unless the performance is one which the law specifically enjoins upon a party as a duty of the office, trust or station, the writ does not lie. State ex rel. Swart v. Molitor (1981), 190 Mont. 515, 523, 621 P.2d 1100, 1105. Nor does the writ lie to compel the performance of an act which would be beyond the power of the party to which it is directed. State ex rel. Judith Basin County v. Poland, et al. (1921), 61 Mont. 600, 203 P. 352.
The appellants contend that they owe no clear legal duty to pay HPRS benefits directly to the respondent because of numerous statutory restrictions on the use of HPRS funds and the payment of benefits. They argue that, in light of the statutory restrictions, the direct payment of HPRS benefits to the respondent would be beyond their statutory power. The respondent, in turn, asserts that the HPRS statutes do not preclude the payment of benefits directly to her and that the appellants’ clear legal duty to make such payments arises from the directive contained in the dissolution decree.
The HPRS statutes are contained in Title 19, Chapter 6, MCA. Before discussing those statutes which are relevant to the issue at hand, we note that our function in construing and applying statutes is to effectuate the intention of the legislature. State ex rel. Roberts v. Public Service Comm’n (1990), 242 Mont. 242, 246, 790 P.2d 489, 492. If the legislature’s intent can be determined from the plain meaning of the words used in a statute, we will go no further. Phelps v. Hillhaven Corp. (1988), 231 Mont. 245, 251, 752 P.2d 737, 741. In addition, it is the function of the courts to ascertain and declare what in terms or substance is contained in a statute; it is not our function to insert what has been omitted. State v. Crane (1989), 240 Mont. 235, 238, 784 P.2d 901, 903.
We conclude that no clear legal duty requires the appellants to pay one-half of Martin’s disability retirement benefits directly to Patricia. Notwithstanding the dissolution decree, direct payment of benefits to anyone other than a statutorily recognized recipient is prohibited under the HPRS statutes.
The plain language of § 19-6-406, MCA, provides that HPRS assets cannot be used for any purpose other than the exclusive benefit of HPRS members and their beneficiaries and paying reasonable administrative expenses associated with the retirement system. Amember is defined as a person who has accumulated salary deductions standing to his or her credit in the HPRS pension trust fund. Section 19-6-101(9), MCA. A beneficiary is defined as a surviving spouse or a dependent child, or if there is no surviving spouse or dependent child, a person nominated to receive benefits under § 19-6-602, MCA. Section 19-6-101(4), MCA.
The respondent is not a member of the retirement system as defined in § 19-6-101(9), MCA. As a result of the dissolution decree, the respondent is not, and never can be, a surviving spouse beneficiary of HPRS member Martin Neuhausen as defined in § 19-6-101(15), MCA. Under these facts, the diversion of the HPRS assets to the respondent in the manner directed by the District Court is prohibited; the diversion would constitute a use of those assets other than for the purposes authorized by § 19-6-406, MCA.
In addition to the restrictions on the use of the HPRS assets discussed above, § 19-6-702, MCA, provides that HPRS benefit payments may not be modified in any way without legislative action.
19-6-702. Payments to be monthly and fixed. The retirement allowances granted under the provisions of this chapter shall be paid in equal monthly installments and may not be increased, decreased, revoked, or repealed unless by act of the legislature of the state of Montana.
The legislature’s intent to exercise exclusive control over the operation of the HPRS could not be stated more clearly. Thus, pursuant to this section, divided benefit payments payable directly to a former spouse of a HPRS member can be established only by an act of the legislature and not as part of a judicial decree.
Finally, § 19-6-705, MCA, exempts HPRS benefits from legal process.
19-6-705. Exemption from taxes and legal process. Any money received or to be paid as a member’s annuity, state annuity, or return of deductions or the right of any of these is:
(2) exempt from levy, sale, garnishment, attachment, or any other process ...
(Emphasis added.) By enacting this section, the legislature has insulated the retirement system assets from actions taken directly against a member’s benefits. The court’s action in ordering the direct payment of HPRS benefits to the respondent, in both the dissolution decree and writ of mandate, constitutes prohibited legal process against money to be paid by the retirement system.
The respondent cites several Montana dissolution cases as support for her argument that the appellants should pay her portion of Martin Neuhausen’s HPRS benefits directly to her. Her reliance on those cases is misplaced. The cases hold only that retirement benefits are a marital asset which must be considered by the corut when equitably distributing the marital estate; they do not hold that the public retirement systems in charge of administering the various retirement funds are obligated to make divided and separate distributions of benefits or any other distributions that are beyond the statutory parameters of those systems. See In re the Marriage of Keedy (Mont. 1991), 813 P.2d 442, 48 St.Rep. 572; In re the Marriage of Butler (1990), 243 Mont. 521, 795 P.2d 467; In re the Marriage of Sirucek (1985), 219 Mont. 334, 712 P.2d 769; In re the Marriage of Rolfs (1985), 216 Mont. 39, 699 P.2d 79; Sowell v. Teachers’ Retirement System (1984), 214 Mont. 200, 693 P.2d 1222.
In sum, the Department of Administration is not charged with and, indeed, is prohibited by statute from making direct, divided payments of HPRS benefits to former spouses of HPRS members. The Public Employees’ Retirement Board of the Department of Administration, as trustee of the HPRS funds, has a fiduciary duty to manage those funds strictly in accordance with the law. The HPRS statutes do not authorize payment of HPRS benefits to anyone other than a HPRS member or beneficiary and the Department cannot be compelled by a court to perform an act outside its statutory authority, which would be the effect of affirming the District Court. Having determined that the appellants owe no clear legal duty to pay HPRS benefits directly to the respondent, we need not address whether any speedy or adequate remedy exists in the ordinary course of law. We hold that the District Court abused its discretion by issuing the writ of mandate.
We note that direct benefit payments to former spouses pursuant to a dissolution decree could be created legislatively in Montana and, indeed, have been created in other states and under federal law. See, e.g., Tex. Gov’t Code Ann., Public Retirement Systems, § 801 et seq. (Vernon 1992); § 8345(j)(l) of the Civil Service Code, Chapter 83, 5 U.S.C. §§ 8331-8348 (1986). To date, however, the legislature of this state has not provided for direct benefit payments to former spouses within the HPRS statutory framework and we will not judicially amend the statutes to provide for such payments.
The District Court, pursuant to § 27-26-402, MCA, awarded the respondent $1,500 in attorney’s fees and $220 in costs incurred in seeming the writ of mandate. It is unfortunate that the respondent incurred the above expenses based on the terms of the dissolution decree, but given our holding that the writ is not a proper remedy in this case, we must vacate the award of attorney’s fees and costs. For the same reason, the respondent’s request for additional damages pursuant to § 27-26-402, MCA, for attorney’s fees and costs incurred on appeal must be denied.
As a final matter, the appellants request that the respondent be directed to return to the Division all HPRS benefits which have been paid to her in conformity with the writ of mandate issued by the District Court. The appellants cite no authority for the return of the benefits paid and do not specifically state how or to what extent the Division would be harmed if the benefits were not returned. It appears, however, although the record is not clear, that subsequent to the original dissolution decree and up until the time the Division complied with the writ of mandate, the Division paid to Martin Neuhausen his full and undivided disability retirement allowance. As a result of the writ being issued, it then paid to the respondent one-half of the benefits which accumulated from the time of the original dissolution decree (without any recourse against Martin N euhausen to cover the respondent’s share) as well as one-half of such benefits as subsequently have become due. Thus, the Division appears to have expended a greater amount of money because of the issuance of the writ than it would have otherwise. We conclude that it is necessary to remand to the District Court for a determination of whether the Division, in fact, has overpaid benefits and, if so, for a determination of such relief as may be appropriate under the circumstances.
Reversed and remanded for entry of judgment denying the writ of mandate, for determination of whether the Division is entitled to a return of benefits paid to the respondent, and for such further proceedings consistent with this opinion in Cause No. DR-88-533(A) as may be appropriate.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, HUNT, WEBER and McDONOUGH concur.
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On February 26,1993, the Defendant was sentenced to Count I, ten (10) years for Kidnapping; Count II, twenty (20) years for Burglary; Count III, twenty-five (25) years for Mitigated Deliberate Homicide. The sentences imposed shall run concurrent to each other but consecutive to the sentence for which the defendant is presently incarcerated.
On May 6,1993, 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.
DATED this 6th day of May, 1993.
Hon. Thomas McKittrick, Chairman, Hon. G. Todd Baugh, and Hon. John Warner, Judges
The Sentence Review Board wishes to thank Mr. Gleed for representing himself in this matter.
|
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MR. JUSTICE HASWELL
delivered the Opinion of the Court.
Following an automobile-motor bike accident, the automobile passenger sued the minor motorcyclist and his parents for her personal injuries and the automobile driver sued in a separate action for damages to his car. Two judgments were entered in the district court of McCone county following a consolidated nonjury trial: (1) Judgment for the passenger against all defendants. (2) Judgment against the driver -in favor of all defendants. The parents of the minor motorcyclist appeal from the first judgment and the driver cross appeals from the second judgment.
On July 28, 1966, at about 4:00 p.m. Clayton Ahrens, a 12 year old, was driving a Honda motor bike south on Montana Route 12 in McCone County. Vernon Sedlacek was driving a Cadillac, in which his wife Signe was a passenger, in the same direction behind the motor bike.
As the Cadillac approached a point on the highway about 600 feet before reaching the accident scene, the Cadillac slowed from about 70 miles per hour to about 60 miles per hour and then picked up speed as it prepared to pass the motor bike.
Clayton Ahrens did not signal his intent to turn left and Vernon Sedlacek did not sound his horn until he was in the act of passing.
As Clayton Ahrens was making his left turn, Vernon Sedlacek applied the brakes and pulled ■ left on to the shoulder of the highway causing the Cadillac to roll. It came to rest on its top with the front end on the pavement and the rear end half in the left borrow pit. It appeared from marks on the Cadillac that the motor bike had collided with the right rear fender of the car.
The motor bike was owned by Clayton Ahrens’ father who had purchased it ten days before the accident. Clayton was using it on Montana Route 12 without the knowledge of his parents, Edward and Dorothy Ahrens, and against their instructions that he not go out upon the highway when using the motor bike.
Signe Sedlacek received personal injuries in the accident. The Cadillac was extensively damaged. Clayton Ahrens received only superficial injuries and Vernon Sedlacek was not injured.
Signe Sedlacek filed a personal injury action against Clayton Ahrens and his parents. Vernon Sedlacek filed an action to recover damages to his Cadillac. Both actions were filed in the district court of McCone County and consolidated for trial.
Judge L. C. Gfulbrandson tried the case without a jury. He entered findings of fact and conclusions of law: (1) that Clay ton Ahrens was negligent in making a left turn off the highway without signaling; (2) Yernon Sedlacek was eontributorily negligent in driving at a speed greater than was reasonable under the existing conditions and in failing to sound his horn prior to passing; (3) that Edward Ahrens was liable for the injuries suffered by Signe Sedlacek by providing a motor vehicle to Clayton Ahrens who was a person forbidden by statute to operate a motor vehicle because of his age; and, (4) that Signe Sedlacek suffered $4,800 damages by reason of her injuries.
Judgment was entered in favor of Signe Sedlacek against Clayton Ahrens and his parents for $4,800, plus costs. A separate judgment was entered in favor of all defendants against Yernon Sedlacek denying damages to the Cadillac.
Edward and Dorothy Ahrens, Clayton’s parents, appeal from Signe Sedlacek’s $4,800 judgment against them; Clayton Ahrens does not appeal from this judgment. Yernon Sedlacek cross-appeals from the judgment denying him recovery for damages to the Cadillac.
Clayton’s parents contend that neither is liable for the injuries to Signe Sedlacek under the trial court’s findings and conclusions.
At the outset, we note there are no findings nor conclusions of the district court that support any liability on the part of Dorothy Ahrens. The district court so provided in the concluding paragraph of its findings:
“WHEREFORE, let Judgment be entered in favor of the plaintiff, Signe Sedlacek, against the defendants, Clayton E. Ahrens and Edward A. Ahrens, in the sum of $4,800 and her costs.”
The judgment was inadvertently entered against all defendants. The name of Dorothy Ahrens is ordered stricken from the judgment to conform to the findings and conclusions.
Two statutes of Montana’s Motor Yehicle Code are relevant to a discussion of Edward Ahrens’ liability:
Section 31-156, R.C.M. 1947, provides:
“(1) No person shall cause or knowingly permit his child or ward under the age of eighteen (18) years to drive a motor vehicle upon any highway when such minor is- not authorized hereunder or in violation of any provisions of this act.” Section 31-127, R.C.M. 1947, provided at the time of the accident:
“The board shall not issue any license hereunder:
“(1) To any person, as an operator, who is under the age of sixteen (16) years, with these exceptions:
“(a) * * *■
“(b) the board may issue a restricted license as hereinafter provided to any person who is at least thirteen (13) years of age # *
Edward Ahrens contends that he is not liable because (1) he did not knowingly permit his son Clayton to drive the motor bike upon the highway in violation of section 31-156, and (2) the licensing statute does not forbid a minor below licensing age to drive a motor bike on private property.
Edward’s contentions miss the point. The basis of his liability is entrustment of the motor bike to a person not qualified to operate it on a public highway. Liability is not predicated on knowingly permitting Clayton to drive the motor bike on the highway in violation of section 31-156. The relevant basis of liability was expressed in this language by the district court:
“The defendant, Edward Ahrens, by providing a motor vehicle to Clayton Ahrens who was a person forbidden by statute to operate a motor vehicle because of his age, is liable for injuries caused to the plaintiff, Signe Sedlacek, by the negligent operation of the motor bike by Clayton Ahrens.”
Licensing statutes such as section 31-127, R.C.M. 1947, prohibiting the issuance of an operator’s license to a minor below a prescribed age are enacted under a state’s police powers in the interests of public safety. One of the objects of such statutes is to protect users of the highways from inexperienced and immature drivers. Charbonneau v. MacRury, 84 N.H. 501, 153 A. 457, 73 A.L.R. 1266. Such statutes are legislative declarations that minors under licensing age are incompetent drivers and do not possess sufficient care and judgment to operate motor vehicles on the public highways without endangering the lives and limbs of others. Schultz v. Morrison, 91 Misc.Rep. 248, 154 N.Y.S. 257, aff’d, 172 App.Div. 940, 156 N.Y.S. 1144; 7 Am.Jur.2d, Automobiles and Highway Traffic § 107.
The fact that such a minor deviates from the consent given and exceeds its limitations will not relieve the provider from liability. 8 Am.Jur.2d, Automobiles and Highway Traffic § 575; Shrout v. Rinker, 148 Kan. 820, 84 P.2d 974; Strout v. Polakewich, 139 Me. 134, 27 A.2d 911. Liability is not bottomed on agency or imputed negligence where the scope of consent or authority may play a significant role. Respondeat superior and the family purpose doctrine are alien considerations. The act of the provider himself is the basis of liability— placing an unlicensable minor in possession of an instrumentality which in his immature and incompetent hands becomes dangerous to other motorists the licensing statute is designed to protect.
Counsel for defendants have cited three cases under similar facts where other courts have held the parent is not liable. Fitiles v. Umlah, 322 Mass. 325, 77 N.E.2d 212; Prewitt v. Walker, 231 Miss. 860, 97 So.2d 514; Marron v. Helmecke, 100 Colo. 364, 67 P.2d 1034. All are distinguishable. Fitiles and Marrón involved an agency relationship of employer-employee with scope of employment and consent the controlling elements in regard to liability. Prewitt involved imputed negligence arising from the parents’ signatures on a minor’s application for a driver’s license.
We affirm Signe Sedlacek’s judgment against Edward Ahrens.
The thrust of the crossappeal is that Vernon Sedlacek could, not have been contributorily negligent because (1) the acci dent happened the way Sedlaeeks testified and not the way Clayton said it did; (2) in any event, neither excessive speed nor failure to sound the horn prior to passing proximately caused the accident.
The first point simply involves a conflict in the evidence. We have consistently held under such circumstances that this Court cannot substitute its weighing of the evidence for that of the trial court. When there is a conflict in the evidence, the findings of the trial court are presumed to be correct if supported by substantial credible evidence. City of Missoula v. Rose, 164 Mont. 90, 519 P.2d 146.
The second point involves causation. Vernon Sedlacek’s contention, as we understand it, is that Clayton Ahrens’ negligence was the sole proximate cause of the accident and that neither excessive speed nor failure to sound his horn prior to passing on the part of Vernon Sedlacek contributed to the cause of the accident.
Excessive speed by Sedlacek could have contributed as a proximate cause of the accident under the evidence. “But for” such excessive speed the Cadillac could have been stopped short of a collision, or at least short of the ditch. The same may be said of the horn. “But for” Sedlacek’s failure to sound his horn sufficiently in advance of passing, Clayton would have been warned of the overtaking Cadillac iu time to avoid turning in its path. The “but for” test iu determining proximate cause has been approved in Montana. Sztaba v. Great Northern Ry., 147 Mont. 185, 411 P.2d 379.
Haney v. Mutual Creamery Co., 67 Mont. 278, 215 P. 656 does not support Sedlacek here. Haney simply held that under the evidence of plaintiff, he was not contributorily negligent as a matter of law and the question should be submitted to the jury.
The judgments of the district court, as modified to eliminate Dorothy Ahrens, are affirmed.
MR, CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES JOHN C. HARRISON and DALY, concur.
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MR. CHIEF JUSTICE HASWELL
delivered the opinion of the Court.
This case is now before the Court on a motion to fix attorney fees on appeal. Movants are a firm of attorneys appointed by the District Court of Yellowstone County to represent an indigent defendant in a major felony criminal case at public expense.
Guy John Allies, an indigent, was charged with four counts of deliberate homicide by the county attorney of Yellowstone County. A Billings law firm was appointed to represent him both in the District Court and upon appeal. For their services and expenses to the time of and through the trial stages, counsel were paid at the rate of $35.00 per hour for a total of $42,000 plus dollars. This sum has been paid by Yellowstone County and no issue is raised concerning this fee which covers the period from appointment March 14, 1977 to the end of trial on February 3, 1978.
Defendant was convicted after jury trial and he and his attorneys have initiated an appeal to the court. The District Judge, after allowing trial fees on February 3, 1978, noted on the claim that fees on the appeal would be limited to a flat $2,000 plus expenses. From this $2,000 the district judge deducted $525 for services at the sentencing which he considered as part of the appeal.
Defendant’s attorneys have filed a motion in this Court seeking an order setting their rate of compensation for services on appeal at the rate of $40.00 per hour plus their expenses to be paid by Yellowstone County on a monthly basis for actual time and costs expended. They contend that the order of the district judge fixing their fee as heretofore set out is unreasonable and an abuse of discretion.
Section 95-1005, R.C.M. 1947, now section 46-8-201 MCA, states:
“Renumeration of appointed counsel. (1) Whenever in a criminal proceeding an attorney represents or defends any person by order of the court on the ground that the person is financially unable to employ counsel, the attorney shall be paid for his services such sum as a district court or justice of the state supreme court certifies to be a reasonable compensation therefor and shall be reimbursed for reasonable costs incurred in the criminal proceeding.”
‘Reasonable compensation’ to relator is required by [the] statute. The determination of ‘reasonable compensation’ is a discretionary function of the judge under the statute. The exercise of a judge’s discretion will not be disturbed absent abuse thereof. Luebben v. Metlen (1940), 110 Mont. 350, 100 P.2d 935.” State ex rel. Stephens v. District Court (1976), 170 Mont. 22, 27, 550 P.2d 385, 388.
“The fee need not be of an amount equal to that from a paying client, but should strike a balance between conflicting interests, including the professional obligation of a lawyer to make legal counsel available and the increasingly heavy burden on the legal profession created by expanded indigent rights. Court appointed counsel should neither be unjustly enriched nor unduly impoverished, but must be awarded an amount which will allow the financial survival of his practice. A county shall pay a reasonable amount for all professional services which are not donated.”
“Elements of consideration in fixing fees include the amount of time and effort expended, the nature and extent of the services rendered, the fees paid for similar services in other jurisdictions, the traditional responsibilities of the legal profession, the amount of public funds made available for such purposes, and a judicious respect for the tax paying public as well as the needs of the accused.” State v. Lehirondelle (1976), 15 Wash.App. 502, 550 P.2d 33, 34-35. See also Hill v. Superior Court, Humbolt County (1956), 46 Cal.2d 169, 293 P.2d 10; Bennett v. Davis County (1971), 26 Utah 2d 225, 487 P.2d 1271; State v. Horton (1961), 34 N.J. 518, 170 A.2d 1; 18 A.L.R.3d 1074.
Movants first contend that $40.00 an hour is a reasonable com pensation for their services on appeal and that a flat fee of $2,000 is not. They argue that the overhead of their law firm amounts to about $20.00 per hour and that to date of hearing they have spent 413/4 hours reading a transcript of approximately 1,750 pages; 104V2 hours in legal research and production of appellant’s brief; and 8!4 hours in performing miscellaneous services.
Their argument is unconvincing. They are not entitled to charge the entire overhead of their law firm against this one case. Apparently there are three or perhaps four lawyers in the firm, but it is inconceivable that all spent their entire time and the time of their office staff on this case to the exclusion of all other clients and cases. For further guidance of the District Court, we expressly disapprove of the practice of appointing an entire law firm rather than an individual lawyer as court appointed counsel for an individual charged with a crime. This practice leads to many abuses such as duplication of services, wasted effort, fragmentation of responsibility and authority, to name a few.
The fee they are asking amounts to over $6,000 for the appeal to. date and it has not yet been argued. Most of the legal research necessarily had to have been performed prior to trial for which counsel was compensated handsomely to the tune of over $42,000. As stated above, in striking a balance between the age-old responsibility of providing gratuitous service to indigent defendants and the increasing burdens placed on the bar by expanded indigent rights, much discretion must be left in the trial judge. We find the fixing of the flat fee of $2,000 for the appeal is not such abuse of discretion as to require intervention by this Court. The request for prepayment is denied. The statute requires the District Court to certify the services have been rendered. However the $525 formerly granted for services at the sentencing hearing should not be deducted from the appeal fee.
As to the third issue of denial of constitutional rights, the discussion in State ex rel. Stephens v. District Court, supra, 170 Mont. at pp. 28, 29, 550 P.2d at p. 389, is pertinent:
“Be that as it may, we do not consider the constitutional guarantee of effective assistance of counsel impaired by denial of compensation that is not reasonable.”
See also Dairies v. Markoff (Nev. 1976), 555 P.2d 490, 493:
“The professional obligation to respond,, to the call of the court is an incident of the privilege to practice law, and does not offend constitutional commands. United States v. Dillon, 346 F.2d 633 (9th Cir.1965); State v. Rush, 46 N.J. 399, 217 A.2d 441 (1966); Lindh v. O’Hara, 325 A.2d 84 (Del. 1974). Neither our state constitution nor the federal constitution precludes service to indigents without ‘full’ compensation.”
Because the problem of fixing reasonable fees is a recurring problem this Court will set the following guidelines: That if a trial court allows fees on a hourly basis the maximum amount allowed per hour shall be not more than $30.00 per hour subject to a total maximum of $5,000 in any given criminal proceeding without prior court approval.
The motion is denied except that the full amount of $2,000 shall be available to pay attorney fees on the appeal of this matter.
MR. JUSTICES DALY, HARRISON and SHEA concur.
MR. JUSTICE SHEEHY deeming himself disqualified, did not participate in this cause.
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PER CURIAM.
Petition for alternative writ of prohibition by relators.
Application is denied, without prejudice.
|
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
This is an appeal by the State of Montana, acting by and through its State Highway Commission, from a judgment entered pursuant to a verdict in the district court of Lewis and Clark County, the Hon. James Freebourn, district judge, presiding with a jury.
John and Margaret Barnes are the owners of 52.69 acres of land condemned by the plaintiff State for the purpose of constructing Interstate Highway No. 15 between Helena and Great Falls. The land is located approximately one mile north of Craig, in Lewis and Clark County. The jury awarded $14,403 for the land taken and $29,976.83 for depreciation to the remainder.
The Barnes ranch, before the taking, consisted of a unit of 3,164 acres, the shape of which was roughly square with the Missouri River forming the east boundary. The land condemned for the highway is a strip which goes through the ranch from north to south close to the river. The Great Northern Railway had already severed the ranch in this area and the new highway approximately parallels the railroad right-of-way.
Of the land taken, 46.20 acres was for the highway and the remainder for the relocation of access roads to the ranch. To the south, it was necessary to relocate access to the ranch from Craig. The old access road going south to Craig was on bottom land close to the river and the railroad and is now covered by the Interstate. The new access road built by the State is on higher ground to the west of the Interstate. Unlike the old road, there are some rather steep grades on the new road. Evidence was introduced as to whether or not more work was necessary to make the new road safe in all types of weather; however, early in the negotiations concerning the taking the Barneses insisted that the access road to Craig, as now built by the State, go over the area the road now covers as against the State’s suggestion of another roadway.
It was also necessary to relocate access to the ranch from the north. The State constructed a new road and paid for the land it required but after construction a slide occurred and for a time this road was impassable. The state guaranteed to either repair the slide area or change the road to the Barnes’ satisfac tion. During the trial the court allowed testimony as to whether or not additional items were needed to make both the north and south access roads safe and passable in all seasons.
A domestic water well used by the defendants was located in the path of the new highway and was destroytd in the taking. The state drilled a new well for defendants’ use to the west of old well. See State Highway Comm’n v. District Court, 147 Mont. 348, 412 P.2d 832. The new well is in the farmyard close to the doors of a garage and machine shop; defendants claim that this location causes them inconvenience in getting machinery in and out of the shop. There was dispute as to whether or not certain additional items were needed to make the well usable and it was agreed that a sand filter should be installed.
The new highway necessitated several other changes in the operation of the ranch. Direct access to water for animals was severed. A drainage culvert was placed under the Interstate to provide normal drainage but free access by cattle to the river is prevented. A sleeve was placed under the highway so that the landowners can pump water to the ranch side of the highway, if they wish. Another intrafarm road was severed and there was conflict in the testimony as to whether or not it had been restored.
Prior to the taking the defendants had 21 acres of irrigated land east of the railroad which was used for feeding cattle and raising pigs. There was also a “holding pen” for bulls on this land. This parcel of land was .4 of a mile from the residence before the taking, now it is necessary for the defendants to drive to the Craig interchange, cross the Interstate, and then double back to the land; a distance of 3 and % miles. Defendants claim this makes it impractical to use the parcel of land for pasture, bull pens or pig raising.
A calf pasture and calving lot needed relocating because the Interstate covered most of the level land on which they were located. A shelter for cows and calves which before the tak ing was within sight of the residence was eliminated by the taking.
Approximately two acres lying % mile north of the residence ia now completely landlocked with the new highway on one side, the railroad and the river on the other; most of this land is sloped rather steeply and is of limited value.
There were only two qualified witnesses testifying as to the value of the land and improvements. The State’s witness, Mr. Neil appraised the taking at $5,869 while Mr. Steele, the Barnes’ witness, appraised the taking at '$9,586. i The jury awarded $14,403, some $4,817 above the highest value testified to by either witness.
The State has set forth 21 issues complaining of errors made during the course of the trial. For our consideration and discussion these issues will be grouped as follows :
1. Whether or not the court erred in admitting testimony of the owner, Barnes, and his neighbors concerning value.
2. Whether or not error occurred in overruling objections to testimony concerning a “road problem” and allowing into evidence certain photographs of the temporary slide on the north road.
3. The admission into evidence of testimony by Earl O. Parsons, over objection, as to the cost to the landowners in building certain access roads.
4. The refusal to grant a new trial.
5. Whether or not error occurred in the giving of instructions numbered 27, 22, 5,4-A, 9 and 23.
The. issues grouped under No. 1 concern the admission of testimony by Mr. and Mrs. Barnes and their neighbors as to values. We find the court erred in allowing much of the testimony given over the objection of the State and on these grounds alone a new trial is necessary.
In two highway cases, State Highway Comm’n v. Peterson, 134 Mont. 52, 63, 328 P.2d 617, 623, and. later in Alexander v. State Highway Comm’n, 142 Mont. 93, 381 P.2d 780, this Court held; first in the Peterson ease:
“Who are competent to give opinions on value of property is generally in the discretion of the trial judge. It must appear that the witness has some peculiar means of forming an intelligent and correct judgment as to the value of the property in question beyond what is presumed to be possessed by men generally. Lewis, Eminent Domain, § 656, p. 1127 (3rd ed.). One who knows the real property in question and is familiar with the uses to which it may be put, may testify as to its market value. The witness need not know of any sales and he need not be a technical expert.”
Later in Alexander v. State Highway Comm’n:
“We now restate the rule to be that an owner, upon prima facie proof of ownership, shall be qualified to estimate in a reasonable way the value of his property for the use to which he has been putting it. Such owner is not qualified by virtue of ownership alone to testify as to its value for other purposes unless he possesses, as any other witness as to value, ‘some peculiar means of forming an intelligent and correct judgment as to the value of the property in question beyond what is presumed to be possessed by men generally.’ ” (Emphasis ours.)
With this rule to guide us, we will examine the testimony of Mr. and Mrs. Barnes as value witnesses. First, Mrs. Barnes gave no value testimony but testified at length explaining the operations of the ranch before and after the taking.
Mr. Barnes was a value witness, who put the before taking value at $204,590 and testified that he should be given $92,000 compensation for the taking and depreciation of his ranch. It is to this testimony on depreciation that the error goes, due to the failure to lay any foundation that Mr. Barnes testified from “some peculiar means of forming an intelligent and correct judgment as to the value of the property” or facts within his knowledge as to the values he testified to. In addition he did not use accepted procedures in arriving at the value figures. His value testimony would have been acceptable had he used as a basis for his testimony “market values”, “the animal unit method” or had he shown how he arrived at his figures.
His testimony was clearly unacceptable because the basis of his rationale was how he was “personally affected” by the changes and on that basis it became not only conjecture but highly speculative. This type of testimony has been condemned repeatedly by this Court and should not have been admitted. State Highway Comm’n v. Bare, 141 Mont. 288, 377 P.2d 357; State Highway Comm’n v. Smith & Jesson, 141 Mont. 302, 377 P.2d 352; Alexander v. State Highway Comm’n, 147 Mont. 367, 411 P.2d 414.
When coupled with the testimony of his neighbors whose testimony likewise failed to live up to accepted evidentiary standards on values, the record clearly shows the necessity for retrial.
One neighbor, Mr. Frank Sterling, a very successful rancher, was allowed to testify on values based on his “personal opinion” even though he admitted that his testimony was not founded on market values based on sales of comparative property, or any other accepted method of arriving at value. While he most certainly is a highly qualified rancher, he still must show some basis for his valuations, other than his “personal opinion” based on his “experience”.
The Peterson case, supra, recognizes that a witness might be so familiar with sales and market values he could have an intelligent and correct judgment of market value of land, even though he is not a technical expert. But here Mr. Sterling admitted that he had no knowledge of sales of any sort. In fact, he stated they were of no import and it was his “personal opinion” that controlled insofar as his testimony was concerned. Under these facts and circumstances the court should have sustained the State’s objection to his testimony.
Another neighboring rancher, Clyde Lahti, was called to give value testimony. When the State requested permission to voir dire on his qualifications as an expert, the trial judge refused and he testified that the values were his “personal opinion”; that he had no knowledge of sales and had made no inquiry into the ranch lands carrying capacity. The State moved to strike Mr. Lahti’s testimony but the motion was overruled. The rule has long been in this State that an expert witness giving an opinion upon facts of his own knowledge or based upon his own observations first testify to the facts upon which his opinion is based. State v. Bess, 60 Mont. 558, 199 P. 426; Iron v. Hyde, 110 Mont. 570, 105 P.2d 666. The trial court erred in not allowing voir dire of witness Lahti.
Yet another neighbor, John H. Warhime, was called as “an expert” value witness; again the trial court refused the State’s request to voir dire. He too relied on “personal opinion” as to before and after values. The court' erred in refusing the State’s voir dire examination of witness Warhime.
In the course of getting their case to the jury, the defendants had a Mr. C. R. Steele appear as their expert appraiser. Mr. Steele is by profession a real estate consultant and appraiser with considerable experience in the western states, appearing both in State and Federal courts. He had been hired by Mr. and Mrs. Barnes to make the appraisal on November 1, 1966, just a few weeks before trial and he had not seen the ranch for the purposes of appraisal prior to the highway construction. He testified at length as to the methods he used in arriving at the fair market value of the ranch prior to the taking and the methods used to determine the depreciation of the fair market value of the ranch after the taking. The methods used were the acceptable methods used by other appraisers, including the “market data” approach, the “cost of reproduction less depreciation” and the “income” approach. His testimony set the cost to the State for the land and improvements taken for right-of-way at $9,586 and $52,094 for depreciation to the remainder.
The State moved to strike the Steele testimony on the following basis: “that the appraisal'testimony be stricken under Rules of Court, because he is not qualified to give an appraisal of the before value when he never saw it. How can he inspect it?”
We find no error in the court’s overruling of the State’s motion to strike the Steele testimony, for to compel a landowner to hire professional appraisers at the outset of every eminent domain ease would be both costly and in many cases restrictive to negotiated proceedings between the parties involved in the taking. However, in view of the fact this matter is being returned to the district court for a new trial, it should be noted that Steele’s testimony concerning certain access road ■probléms should have been restricted as no proper foundation was laid for this testimony.-
The next issue concerns the admission into evidence of certain photographs of the slide area on the access road. The qourt erred in .allowing the admission of these photographs because, first, they were outside the scope of issues and second, their admission might well have both confused the jury and .prejudiced the State’s case. Later testimony established that the slide area would be either repaired or the State would acquire more right-of-way to put in another road. On. retrial these photographs should not be introduced.
The next issue to be considered concerns the court’s failure to grant a motion for a new trial principally for the reason that the jury’s verdict awarded $14,403 for land and improvements taken when the highest testimony given, that of Mr. Steele, was $9,856.
To this error the respondents counter that there is evidence by which the jury could have arrived at this figure and after all it is a just and reasonable figure and is not prejudicial to the State. To support their position the respondents rely upon State Highway Comm’n v. City Service Co., 142 Mont. 559, 385 P.2d 604; and Lewis and Clark County v. Nett, 81 Mont. 261, 263 P. 418. In the City Service case this-Court held, in interpreting section 93-9915, R.C.M.1947, that so long as the awards are not excessive and are supported by substantial evidence, they will be upheld even though listed separately, contrary to the statute. This is not the case here for the award is excessive in the amount above the highest figure testified to at the trial.
The earlier case, Lewis and Clark County v. Nett, established that the measure of damages is the fair market value of the land to be condemned, plus the depreciation to land not taken less allowable deductions for benefits. It is not authority for the respondents’ claim that it support the theory that a total sum is all that is relevant in the award. We fail to see how this supports the respondents’ postion that the jury’s action in this ease was not erroneous.
It is a fundamental and well established rule of law that the burden of proof as to the amount of damages in condemnation proceedings is upon the property owner. Here, by expert testimony, the highest figure for the land and improvements taken was $9,856 and the trial court erred in denying a motion for new trial when the jury failed to find in this or a lesser amount.
The final issue raised by the appellant concerns the giving of instructions numbered 27, 22, 5, 4A, 9, and 23. Appellant contends, with justification, that they do not state the law, are repetitious, and tended to confuse the jury and thereby prejudicial to the appellant. In view of the fact that this cause must be retried we will not set forth verbatim and various instructions referred to, but note that the State’s objections were correct and the instructions should no have been given.
The cause is remanded to the district court with directions to grant a new trial.
MR. CHIEF JUSTICE 'JAMES T. HARRISON, and MR. JUSTICES ADAIR, HASWELL and CASTLES, concur.
|
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Plaintiffs, the Stouts, brought this action in the District Court of the Thirteenth Judicial District, Yellowstone County, to enjoin defendants, the Reiters, from using certain irrigation ditches and from entering upon plaintiffs’ property for the purpose of using the ditches. Defendants counterclaimed seeking to enjoin plaintiffs from interfering with defendants’ right to use the ditches. The case, which was tried before the Honorable Robert H. Wilson sitting without a jury, resulted in an order perpetually enjoining defendants from using the disputed irrigation ditches. Defendants appealed from the District Court’s order.
The case arose because of a disagreement over the meaning of the language used in a warranty deed to reserve an easement for defendants when they sold a parcel of land to plaintiffs’ predecessors. The disputed language reads:
“. . . reserving an easement 8 feet in width for the irrigation ditch, as now located, running from the Yellowstone River on the West to the East line of said tract for the purpose of irrigating property owned by the parties of the first part lying to the North and East of said tract . . .”
In 1965 the land presently owned by plaintiffs and defendants was entirely owned by Leland McMorris. At that time, William. Neibauer, a realtor, effected an agreement whereby defendants purchased the entire tract from McMorris and simultaneously sold a fifteen acre parcel, subject to the reservation of certain easements, to Donald and Grace Underwood by a contract for deed. The fifteen acre parcel, now described as Tract 1, Certificate of Survey # 991, is located along the Yellowstone River and contains a number of irrigation ditches which have been used since 1965 to irrigate defendants’ adjoining property.
The pump shown in this diagram of the fifteen acre parcel is located in a channel of the river and pumps water into the entire ditch system.
At the time defendants sold the fifteen acre tract to the Under-woods, there was a ditch running directly from the pump to the eastern boundary of the tract. Shortly after the Underwoods and defendants completed their transaction, this ditch was plowed under and a new ditch was dug to the south. It now forms the southern portion of Ditch No. 6.
In essence, defendants present two issues for review:
1. Whether there is substantial evidence to support the District Court’s order enjoining defendants from using a certain irrigation ditch with connecting laterals, easements for which are claimed by defendants to have been reserved in them in a contract for deed and warranty deed.
2. Whether the District Court had authority to grant an injunction in a case of disputed title or right before determination of the title or right in an action at law.
Counsel for the Yellowstone County Farm Bureau and the Montana Farm Bureau Federation appeared on appeal as amicus curiae arguing that the primary issue on appeal should be whether defendants own the ditch rights as they existed at the time of their fifteen acre transaction with plaintiffs’ predecessor.
Addressing this latter argument first, we note that the argument assumes that prior to 1965 the ditch system constituted a servitude upon the fifteen acre parcel and an appurtenance to the land now owned by defendants. Along these lines, section 67-601, R.C.M.1947, now section 70-17-101 MCA, provides in pertinent part:
“The following land burdens, or servitudes upon land, may be attached to other land as incidents or appurtenances, and are then called easements:
“(11) The right of having water flow without diminution or disturbance of any kind.”
However, section 67-611, R.C.M.1947, now section 70-17-111 MCA, provides in pertinent part that:
“A servitude is extinguished:
“1. By the vesting of the right to the servitude and the right to the servient tenement in the same person;”
It is apparent, then, that the ditch system could not have been an appurtenance to defendants’ land prior to 1965 because the dominant and servient tenements were part of the same parcel. The easement in this case was created at the time the parcels were separated, and we must look to the language of the instrument which created the easement to determine what it includes.
The complete reservation found in the warranty deed reads as follows:
“... reserving, however, to the parties of the first part, their heirs and assigns, an easement 30 feet in width for a roadway, as the same now exists, running North and South approximately through the middle of the said tract for the purpose of access to property owned by the parties of the first part lying to the North of said tract; and reserving an easement 8 feet in width for the irrigation ditch, as now located, running from the Yellowstone River on the West to the East line of said tract for the purpose of irrigating property owned by the parties of the first part lying to the North and East of said tract; and also reserving an easement for the location of the pump which pumps the water from the Yellowstone River into said ditch and for ingress and egress thereto as necessary and for servicing and repairs, also known as Tract No. 1 of Certificate of Survey No. 991.” (Emphasis added.)
Defendants argue that the ditch referred to in the warranty deed and the contract for deed is the ditch running north and south. They argue that this is a main ditch or “dike” ditch and that the term “ditch” as used in the deed includes the entire ditch system, including the lateral ditches. In proposing this interpretation, they seek to place great significance on the phrase “for the purpose of irrigating property owned by the parties of the first part lying to the North and East of said tract.” They contend that the one ditch, now plowed under, would not be sufficient to irrigate all of defendants’ land.
Testimony adduced at trial suggests, and the trial court found, that defendants sold the land with the apparent intention of building a new north/south ditch on their property which would have been fed by the ditch they expressly reserved. They postponed building a new ditch because they received permission to use the entire ditch system from the Underwoods in return for irrigating the Underwoods’ property. “ ‘ “This Court will not reverse the findings of the trial court unless there is a clear preponderance of the evidence against such findings” ’.” Schulz v. Peake (1978), 178 Mont. 261, 583, P.2d 425, 430. Here the trial court’s findings are adequately supported by the evidence.
Since the issue concerning the appropriateness of the remedy or the theory on which the case was tried was not raised in the lower court, it should not be considered on appeal. Kearns v. McIntyre Const. Co. (1977), 173 Mont. 239, 567 P.2d 433, 440. Defendants acquiesced to the injunction theory by counterclaiming for an injunction and reformation of the contract. The District Court decided the issues on the theory adopted by both parties. “. . ■. [W]hen a party has adopted one theory upon the trial of his case, he may not change the theory on appeal. (Citation omitted.)” O’Hanlon v. Ruby Gulch Min. Co. (1922), 64 Mont. 318, 326, 209 P.1062, 1064.
The judgment of the District Court is affirmed.
MR. JUSTICES DALY, SHEA and SHEEHY and DIANE G. BARZ, District Judge, sitting, for CHIEF JUSTICE HASWELL, concur.
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MR. JUSTICE WEBER
delivered the Opinion of the Court.
The Workers’ Compensation Court held that claimant’s disability was proximately caused by an industrial accident while working at Travel Lodge International (Travel Lodge) and awarded Mabel C. Tenderholt temporary total disability benefits. Travel Lodge and Royal Insurance Company of America (Royal Insurance) appeal. We affirm.
The issues on appeal are:
1. Did the Workers’ Compensation Court err in concluding that Mrs. Tenderholt’s disability was proximately caused by an industrial accident while employed at Travel Lodge?
2. Is Royal Insurance entitled to seek indemnity from subsequent insurers?
In September 1981, while employed as a maid for Travel Lodge, Mrs. Tenderholt experienced a sharp pain in her back as she unraveled the cord of a vacuum cleaner. She finished her shift and went home. Later that evening, she went to the emergency room after increased pain made it impossible for her to walk without her husband’s help. At the emergency room, X-rays were taken, medication prescribed and advice given to see a specialist, Dr. Hayward.
Dr. Hayward, an orthopedic surgeon, saw Mrs. Tenderholt on October 6, October 16, November 13 and December 11, 1981. During the November visit, Dr. Hayward advised her that she could probably return to work the following week but should wear a corset.
Travel Lodge accepted liability for Mrs. Tenderholt’s injury and paid weekly temporary total disability benefits through November 15, 1981.
Mrs. Tenderholt sought to return to work at Travel Lodge but was told her position had been filled. On or about November 20, 1981, she went to work at Lewis and Clark Inn as a maid and worked until April 1982. In August 1982, she went to work as a maid for Picture Court Motel. After a month, she returned to Lewis and Clark Inn where she remained until back pain caused her to quit, in May 1983.
Mrs. Tenderholt returned to Dr. Hayward for office visits on January 11, January 20, February 3, March 16 and April 11, 1984. After extensive examination, she was diagnosed as having extra dural defects and possibly a herniated nucleus pulposus. In order to relieve the pressure, Dr. Hayward recommended surgery, which requires exploration of three different levels in the spine. In July 1984, Mrs. Tenderholt filed a claim against Travel Lodge. In December 1984, the Workers’ Compensation Court ordered Royal Insurance to pay temporary total disability benefits until Mrs. Tenderholt submits to and recovers from surgery.
Did the Workers’ Compensation Court err in concluding that Mrs. Tenderholt’s disability was proximately caused by an industrial accident while employed at Travel Lodge?
At issue is the question of whether Mrs. Tenderholt’s injury ever reached a medically stable condition. Stated otherwise, was Mrs. Tenderholt’s low back injury restored as far as the permanent character of her injuries would permit?
Travel Lodge and its insurer argue that Mrs. Tenderholt’s low back injury reached a point of maximum healing prior to the time she returned to work as a maid at another motel. Mrs. Tenderholt contends she has suffered constant pain since the industrial accident at Travel Lodge, and that her low back injury never reached a medically stable condition.
In his testimony, Dr. Hayward stated that Mrs. Tenderholt had reached a medically stable condition in December 1981. Travel Lodge argues that this terminates its responsibility for the first injury, and that the subsequent injury therefore should be charged to subsequent employers. Normally that would be an appropriate conclusion. However, following his 1984 examinations, Dr. Hayward concluded that the herniated nucleus polposus was a development which can be medically traced back to the original back injury and is not a separate problem.
The court found Mrs. Tenderholt to be a credible witness. Mrs. Tenderholt unequivocally testified that from the time of the first injury in 1981 up until the 1984 examinations by Dr. Hayward, she continued to experience the same, constant, severe pain in her lower back. In addition, she testified that there were no intervening events in subsequent employments which had aggravated her back or constituted a reinjury.
The Workers’ Compensation Court concluded that Mrs. Tenderholt’s present disability was proximately caused by the original 1981 industrial accident while employed at Travel Lodge.
This Court will not reverse the Workers’ Compensation Court on the issue of proximate cause unless the findings of fact or conclusions of law are clearly erroneous. Rule 52(a), M.R.Civ.P., states 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.”
Findings of fact are not clearly erroneous if supported by substantial credible evidence. As this Court stated in Olson v. Westfork Properties, Inc. (1976), 171 Mont. 154, 157, 557 P.2d 821, 823:
“This Court’s function ... is not to substitute its judgment in place of the trier of facts but rather it is “confined to determining whether there is substantial credible evidence to support” the findings of fact and conclusions of law. Although conflicts may exist in the evidence presented, it is the duty and function of the trial judge to resolve such conflicts. His findings will not be disturbed on appeal where they are based on substantial though conflicting evidence.”
The court’s findings were based on conflicting evidence. “[T]his Court’s function on review is confined to determining whether there is substantial evidence to support the findings, and not to determine whether there is sufficient evidence to support contrary findings.” Davis v. Mtn. West Farm Bur. Mut. Ins. Co. (Mont. 1985), [216 Mont. 300,] 701 P.2d 351, 353, 42 St.Rep. 840, 843.
While we have not set forth all of the testimony on the part of Mrs. Tenderholt and Dr. Hayward, we have reviewed the record carefully. There is substantial credible evidence to support the Workers’ Compensation Court’s conclusion that Mrs. Tenderholt’s disability was proximately caused by an industrial accident while employed at Travel Lodge.
In review of this holding, we are not required to address the second issue with regard to indemnity from subsequent insurers. Because Travel Lodge is responsible for the benefits to be paid to the claimant, it has no right to seek indemnity from a third party. See Belton v. Carlson Transport (Mont. 1983), [202 Mont. 384,] 658 P.2d 405, 40 St.Rep. 158.
We affirm the Workers’ Compensation Court.
MR. CHIEF JUSTICE TURNAGE and MR. JUSTICES HARRISON, SHEEHY and GULBRANDSON concur.
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
Defendents were arrested on November 28, 1977, and subsequently charged with the crime of criminal possession with intent to sell dangerous drugs. Trial was set by the District Court for October 10, 1978, some ten and one-half months, or 317 days, after arrest. On September 26, 1978, defendant Puzio moved to dismiss the matter for lack of a speedy trial. The District Court granted the motion. The State appeals under section 95-2403, R.C.M.1947, now section 46-20-103 MCA.
Before considering the speedy trial issue, however, we must clarify a question of the record we will consider. Both parties in their briefs make statements of fact concerning the parole revo: cation of defendant Puzio which are not supported in the record. The parties on appeal are bound by the record and may not add additional facts in their briefs or by appendices thereto. Thrift v. Thrift (1918), 54 Mont. 463, 171 P. 272; Farmers State Bank of Conrad v. Iverson (1973), 162 Mont. 130, 509 P.2d 839. The statements of fact not contained in the record concerning the parole revocation of defendant Puzio have not been considered.
In State v. Tiedemann (1978), 178 Mont. 394, 584 P.2d 1284, 1287, this Court discussed the right to a speedy trial:
“The right to a speedy trial is guaranteed by both the United States and Montana Constitutions. U.S.Const., Amend. VI; 1972 Mont. Const, art. II, § 24. The right to a speedy trial is fundamental, Klopfer v. North Carolina (1967), 386 U.S. 213, 223, 87 S.Ct. 988, 993, 18 L.Ed.2d 1, 8, and the federal standard, as a minimum, is imposed by the due process clause of the Fourteenth Amendment on the states. See Dickey v. Florida (1970), 398 U.S. 30, 90 S.Ct. 1564, 26 L.Ed.2d 26; Smith v. Hooey (1969), 393 U.S. 374, 89 S.Ct. 575, 21 L.Ed.2d 607.
“The touchstone in any analysis of the speedy trial issue is Barker v. Wingo (1972), 407 U.S. 514, 530, 92 S.Ct. 2182, 2192, 33 L.Ed.2d 101, 116-17, in which the Supreme Court set out a four factor balancing approach with the conduct of both prosecution and defense being weighed. The four factors to be considered are:
“(1) Length of delay;
“(2) Reason for the delay;
“(3) Defendant’s assertion of the right; and,
“(4) Prejudice to the defendant.
“The Court emphasized the necessity of balancing the factors:
“ ‘We regard none of the four factors identified above as either a necessary or sufficient condition to the finding of a deprivation of the right of speedy trial. Rather, they are related factors and must be considered together with such other circumstances as may be relevant. In sum, these factors have no talismanic qualities; courts must still engage in a difficult and sensitive balancing process.’ 407 U.S. at 533, 92 S.Ct. at 2193, 33 L.Ed.2d at 118.
“This Court has adopted and applied the four factor balancing test of Barker in a series of decisions dating back to 1973. See State v. Collins (1978), 178 Mont. 36, 582 P.2d 1179; State v. Cassidy (1978), 176 Mont. 385, 578 P.2d 735, 737; State ex rel. Briceno v. District Court (1977), 173 Mont. 516, 568 P.2d 162, 164; State v. Keller (1976), 170 Mont. 372, 377, 553 P.2d 1013, 1016; State ex rel. Sanford v. District Court (1976), 170 Mont. 196, 199, 551 P.2d 1005, 1007; State v. Steward (1975), 168 Mont. 385, 389, 543 P.2d 178, 181; Fitzpatrick v. Crist (1974), 165 Mont. 382, 388, 528 P.2d 1322, 1325; State v. Sanders (1973), 163 Mont. 209, 213, 516 P.2d 372, 375. We reaffirm our support of this test as the correct and most complete standard available to judge speedy trial questions.”
The Court in Tiedemann then went on to discuss the first factor, length of delay:
“Length of delay. Length of delay has been referred to as the trigger setting off the speedy trial issue inquiry:
“ ‘The length of the delay is to some extent a triggering mechanism. Until there is some delay which is presumptively prejudicial, there is no necessity for inquiry into the other factors that go into the balance. Nevertheless, because of the imprecision of the right to speedy trial, the length of delay that will provoke such an inquiry is necessarily dependent upon the peculiar circumstances of the case.’ Barker, 407 U.S. at 530-31, 92 S.Ct. at 2192, 33 L.Ed.2d at 117. “Accord, Keller, 170 Mont, at 377, 553 P.2d at 1017; Steward, 168 Mont, at 389, 543 P.2d at 181.” 584 P.2d at 1287-88.
In the instant cáse, the time lapse is sufficient to trigger an inquiry into the other three factors of the balancing test. The delay (317 days, ten and one-half months, from date of arrest to date set for trial) is longer than or comparable to the delays found sufficient to warrant dismissal in Fitzpatrick (seven months), Cassidy (eight months), Sanford (ten months), Briceno (ten and one-half months), and Keller (eleven months). “The length of delay thus shifts the burden to the State of explaining the reason for the delay and showing absence of prejudice to defendant.” Tiedemann, 584 P.2d at 1288. See also Cassidy, 578 P.2d at 738; Sanford, 170 Mont. at 200, 551 P.2d at 1007; and Fitzpatrick, 165 Mont. at 388, 528 P.2d at 1326.
Reason for the delay. The parties agree that neither defendants nor the county attorney’s office was the cause of any great delay in this case. They contend that the main reason for the delay was crowded court dockets and inadequate calendaring procedures. We agree.
Judge Sande had jurisdiction of the case at two different times as did Judge Luedke. Both Judge Wilson and Judge Martin assumed jurisdiction once. The main cause of the delay was that the case simply sat from the time Judge Wilson assumed jurisdiction in April 1978 until he excused himself August 9, 1978. On August 16, 1978, Judge Sande again assumed jurisdiction and was again sub stituted by defendant Puzio. Judge Luedke again assumed jurisdiction, and the matter was eventually set for trial on October 10, 1978.
The State argues it prosecuted the case with reasonable diligence and should not be responsible for crowded court dockets and the method of scheduling trials. We do not agree. The court in Cassidy flatly held that this position of the State is without merit. 578 P.2d at 738. The situation here is very similar to that found in Briceno in that the matter simply sat on the calendar from April 1978 until it was eventually set for trial in October 1978.
In United States v. Jones (1975), 173 U.S. App.D.C. 280, 524, F.2d 834, 849, the Court stated:
“. . . The Supreme Court has held that delays due to the operation of the system also must be placed at the Government’s door, stating in Barker v. Wingo:
“ ‘A defendant has no duty to bring himself to trial; the State has that duty as well as the duty of insuring that the trial is consistent with due process . . .[T]he rule we announce today, which comports with constitutional principles, places the primary burden on the courts and the prosecutors to assure that cases are brought to trial.’ ”
We find that delays inherent in the system are not chargeable to defendants but rather to the State. The type of institutional delays we have herein enumerated, where a case is allowed to merely sit awaiting trial, cannot be overlooked, absent counterbalancing factors.
Defendants’ assertion of rights. We find that defendants asserted their rights properly under the guidelines set forth by this Court in State v. Steward (1975), 168 Mont. 385, 543 P.2d 178.
The following statement by this Court in Cassidy is dispositive on this factor:
“3. Defendant’s Assertion of the Right.
“The State argues, in this regard, that defendant has failed to expedite the proceedings in this case through any active pleadings before the District Court, such as by requesting an earlier trial date. In addition, it is maintained that defendant’s motion to dismiss for denial of a speedy trial was untimely, and should have been made at some point between entry of plea and the setting of the trial date. The State does not specifically contend, however, that defendant in some manner waived his right to assert a denial of a speedy trial.
“It is, of course, the general rule under the present state of the law that ‘. . . an accused must take some affirmative action to obtain a trial to be entitled to á discharge for delay.’ State v. Steward, 168 Mont. 390, 543 P.2d 182. Such burden is satisfied, however, by the making of an appropriate motion, discussed by this Court in Steward as follows:
“ ‘The “appropriate motion” is a motion to dismiss for denial of a speedy trial. The proper time to assert the right to a speedy trial is prior to the actual commencement of the trial, usually at the time the trial date is set, or the time the case is called to trial . . .’ 168 Mont. 390-91, 543 P.2d 182.
“Defendant’s assertion of the right in this case was in all respects proper under the standard outlined in Steward, having been made between the time the matter was set for trial and the trial date itself.” 578 P.2d at 739.
Prejudice to defendants. The final factor to be considered in the balancing process is the question of whether defendants were prejudiced by the delay. This prejudice is further defined in Barker:
“Prejudice, of course, should be assessed in light of the interests of defendants which the speedy trial right was designed to protect. This Court has identified three such interests: (i) to prevent oppressive pretrial incarceration; (ii) to minimize anxiety and concern of the accused; and (iii) to limit the possibility that the defense will be impaired.” 407 U.S. at 532, 92 S.Ct. at 2193, 33 L.Ed.2d at 118.
With regard to oppressive pretrial incarceration, defendant Puzio has been incarcerated since the day of his arrest. Defendant Allen was not incarcerated prior to trial. Puzio was detained in the Yellowstone County jail away from his family and friends during the entire Christmas and New Year’s holidays. Then he was given a parole revocation and was removed from the county jail to the state prison. He was then returned to Yellowstone County by the sheriff for each of his court appearances and returned to the prison.
The second item to be considered is the anxiety and concern of the accused. Here, the delay of 317 days, along with Puzio’s removal from Billings across the state to Deer Lodge, and the inability to communicate by telephone were reasons for Puzio to have a great deal of concern about the progress in his case, and a great deal of concern about the preparation of his defense.
The last consideration under prejudice to the defendants is the possibility that the defense will be impaired. Barker states that this concern is the most serious because the inability of a defendant adequately to prepare his case skews the fairness of the entire system. The court in Barker commented on the possibility of witnesses dying, witnesses unable to recall accurately events of the distant past, and loss of memory.
These items are always a problem because the record does not always reflect what has been forgotten. In this particular case, Puzio has been incarcerated in the state prison, a great distance from his defense counsel and the scene of the crime. He has not been able to assist in the preparation of his defense except by letter. Further, with regard to memory, the State is the only benefactor since its policy usually requires witnesses to type their statements and scenarios of activity which are used to refresh their recollection. However, lay witnesses called by the defendants rarely have their past recollections refreshed by statements and scenarios prepared by them at the time the events occurred, which, in this case, was November 28, 1977 — two days after Thanksgiving.
We find that Puzio has been incarcerated the entire time since his arrest on November 28, 1977, demonstrates affirmative prejudice against him.
We reemphasize that we are engaged in a delicate balancing process. The presence of prejudice in this case should be weighed heavily in the balancing of all factors.
On balance, we find there has been excessive delay in bringing this case to trial; the State has failed to explain satisfactorily the reasons for the delay; the defendants properly and timely asserted their right to a speedy trial; and, prejudice to defendent Puzio has resulted by reason of the delay.
We believe the comments of now Chief Justice Haswell in Keller, as set forth in Tiedemann again bear repeating:
“This Court, as well as many other courts, has often stated that society at large, as well as the individual defendant, has a stake in the speedy disposition of criminal matters. E. g., Barker, 407 U.S. at 519-21, 92 S.Ct. at 2186-87, 33 L.Ed.2d at 110-11. In view of the result in this case, the comments of now Chief Justice Haswell in Keller bear repeating:
“ ‘. . . Delayed criminal justice proceedings are undermining public confidence in the system itself. Justice delayed may not only be justice denied but justice brought seriously under question. The backbone of law enforcement and the justice system is public support. The courts must not permit the erosion of that support by permitting unnecessary delay between charge and conviction or release’. . .” Tiedemann, 584 P.2d at 1292-93.
We stated further in Tiedemann:
“While we will not tolerate undue delay in the prosecution of an individual defendant, neither will society long tolerate dismissal of criminal charges for lack of speedy trial. Prosecutors and courts must work to avoid the kind of result we reach today.” 584 P.2d at 1293.
We recommend that the judges of the Thirteenth Judicial District of the State of Montana would do well to cooperate to the extent that the situation that occurred in this case is not repeated.
The judgment of the District Court dimissing the charges for lack of a speedy trial is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, SHEA and SHEEHY concur.
|
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ME. JUSTICE HASWELL
delivered the Opinion of the Court.
This is a consolidated appeal by the employer and its insurer from two judgments of the district court of Silver Bow County, awarding workmen’s compensation benefits to two injured employees in companion cases.
Claimants are John and Eobert McMillen, employees of Arthur G. McKee & Company, a contractor engaged on a job of smelter improvement in Anaconda, Montana, under a written contract. Defendant is General Accident Fire & Life Assurance Corporation, a private insurance company, the Plan II insurer of the McKee Company under the Montana "Workmen’s Compensation Act.
The ultimate issue for review is whether the employees were injured in the course and scope of their employment so as to entitle them to workmen’s compensation benefits under the Montana Act. The Workmen’s Compensation Division and the district court held they were. We affirm.
The two McMillen brothers lived in Butte and traveled each workday to and from the Anaconda job. site where they had been employed for about two years. Each was paid $4 per day travel allowance under the terms of a union contract providing in material part:
“* * * Travel pay or subsistence shall be for days worked. # * # The mileage and amount of travel pay or subsistence shall be as follows:
“Zero to 12y2 miles....................................................................none
“Over 12y2 to 25 miles..............................................................$2.50
“Over 25 to 50 miles..................................................................$4.00
“Over 50 miles............................................................................$8.00”
John McMillen purchased a used Dodge truck three days before the accident in question. It had some 71,000 miles on it at the time of purchase, but John testified he carefully checked the car before purchase and found it safe.
On Monday morning, July 2,1973, the two McMillen brothers were seriously injured in a single car accident while enroute to work. Due to some mechanical failure of the Dodge truck, the rear wheels locked, the truck overturned, and both Mc-Millens were injured. The accident occurred on the highway between Butte and Anaconda before they reached the job site. The cause of the accident was something over which neither the employees nor the employer had any control.
Prior to the day of the accident, both employees had been paid $4 per day for each day worked in addition to their wages. The amount paid was called “the mileage and amount of travel pay or subsistence”. On the itemized breakdown attached to their checks, there is a column headed “Subs. Travel” in which this payment was entered. The employer did not deduct any taxes on this travel pay, but each employee paid income taxes on the travel money.
Neither employee received any travel pay on the day of the accident.
The claims of each employee were heard by the Workmen’s Compensation Division. The Division entered findings of fact, conclusions of law, and an order awarding compensation. The substance of the Division holding was that the travel allowance was paid as an incentive “to get the men to come on the job” and a benefit to the employer; that accordingly each suffered an accidental injury arising out of and in the course of his employment; and, that each was entitled to benefits under the Montana Act including compensation, medical expense and attorney fees.
On appeal to the district court, the cases were heard on the record before the Workmen’s Compensation Division without additional evidence. The district court adopted the findings of facts and conclusions of law of the Division, and entered judgment affirming the Division award of benefits.
The employer and insurer now appeal from the judgment of the district court.
The issue is whether under the facts and circumstances of this case the two employees suffered accidental injuries “arising out of and in the course of” their employment within the meaning of Montana’s Workmen’s Compensation Act. Section 92-614, K.C.M.1947.
A review of some prior decisions of this Court on compensation coverage where an employee is injured “going or coming” to and from the job furnishes the background for our determination.
In Griffin v. Industrial Accident Fund, 111 Mont. 110, 106 P.2d 346, compensation was denied a foreman injured in a fall on a city sidewalk when returning home from work. The basis of denial was that the sidewalk was not used by the employer in carrying on his business in which the employee was employed and consequently the employee was injured only by an ordinary street hazard common to all pedestrians.
In Morgan v. Industrial Accident Board, 133 Mont. 254, 260, 321 P.2d 232, 235, claimant, a union shop steward, was injured in an automobile accident while traveling from Miles City to Forsyth. In denying compensation, this Court pointed out that at the time of injury claimant was on union business and not within the scope of his employment. The Cóurt laid down this principle:
“Under the particular circumstances, where the accident occurred is irrelevant. If claimant was injured within the scope of his employment, the fact that he was injured ‘after hours’ and ‘off premises’ is incidental. Even in ‘street risks’, the scope, not the place of employment controls.”
Guarascio v. Industrial Accident Board, 140 Mont. 497, 501, 374 P.2d 84, granted compensation where an itinerant terrazzo tile worker residing in Salt Lake City was killed in an automobile accident enroute from Utah to Butte, Montana to aid in construction of a hospital there. At the time of the accident Guarascio was being paid a travel pay allowance based upon his hourly rate of pay multiplied by the number of hours necessary to travel from Salt Lake City to Butte, plus an allowance for subsistence and transportation costs.
In Guarascio after finding “[an] informal, oral type of employment”, this Court laid down the test of compensability in “going and coming” eases in terms of whether some reasonably immediate service to the employer was involved:
“In the instant case, the decedent Guarascio was carrying on the business of his employer by transporting himself to Butte, Montana, so that he could be on the job as soon as possible. Furthermore, the employer recognized the benefit to it by virtue of the fact that decedent workman was to receive monetary compensation for the time spent traveling to the job.
“In Morgan v. Ind. Acc. Bd., 133 Mont. 254, 321 P.2d 232, this Court made the following observation:
“‘What is the underlying principle? In cases where some reasonably immediate service to the employer can be discerned the claim has been sustained. Where there has been no reasonably immediate service the claim has been denied. Such impresses us as a fundamental rule and guide for the liberality to which this Court is necessarily and properly committed and for which claimant’s counsel so earnestly contend. [Citing authority]. Beyond this each decision must be controlled by the particular facts and circumstances of the particular case. [Citing authority]. Our opinion proceeds upon that premise.’
“The record here substantiates the findings of the district court, but we wish to again state, as we did in the Morgan case, that we ‘do not intend to establish any precedent * * # Our decision is limited to the facts in the case now before us.’ ”
The employer and insurer contend that Guarascio is distinguishable on the basis that there the employee was paid hourly wages for his travel time in addition to subsistence and travel costs indicating that the travel involved was for the benefit of his employer. They contend that the method of payment is crucial to determination of benefit to the employer, which controls compensability.
We disagree. Although benefit to the employer is an important factor in determining compensability, the payment of hourly wages for travel time is not necessarily a universal condition precedent. In the instant case, the union contract singled out for special consideration a travel allowance and testimony at the hearing indicated it was paid as an incentive to get men out on the job. This contractual fact supports the finding of the Division and the district court that the travel allowance was for the benefit of the employer within previous holdings of this Court.
This is consistent with the majority rule in the United States that a workman is usually entitled to compensation when injured during travel to or from his employment where he receives a specific allowance to get to and from his job. 1 Larsen, Workmen’s Compensation Law, § 16.20 et seq. 1 Larsen, Work men’s Compensation Law, § 16.30, p. 4-112, summarizes the principle and its rationale:
“However, in the majority of cases involving a deliberate and substantial payment for the expense of travel, or the provision of an automobile under the employee’s control, the journey is held to be in the course of employment. This result is usually correct, because when the subject of transportation is singled out for special consideration it is normally because the transportation involves a considerable distance and therefore qualifies under the rule herein suggested: that employment should be deemed to include travel when the travel itself is a substantial part of the service performed. The sheer size of the journey is frequently the principle fact supporting this conclusion, as in the successful eases involving trips of ■eight miles, 20 miles, 22 miles, 30 miles, 50 miles, 54 miles, ■60 miles, 120 miles, and 130 miles.
The employer and insurer also argue that the union contract providing for a travel allowance is irrelevant to compensability because the meaning of the phrase “arising out of and in the •course of his employment” must be determined by the rules •of statutory construction. They further contend that employers and employees can not contract themselves in and out of •coverage under the Workmen’s Compensation Act by the terms •of a union contract.
This contention is specious. The statutory language •cannot be interpreted in a vacuum. It must be interpreted in "the context of the facts of the particular case before the court. The union contract providing for travel allowance is a fact. Payment of the travel allowance is another fact. The purpose ■of payment to provide an incentive to get the employees on the job is a third fact. And the benefit to the employer is a final fact. The statutory language is simply applied to these facts and the meaning determined.
We have considered all the cases, statutes and authorities cited by counsel. We hold that the employees here were injured in an accident “arising out of and in the course of his employment” and their injuries are therefore compensable. Our decision is limited to the facts of the case before us.
The employer and insurer seek to raise the issue of the constitutionality of section 92-616, R.C.M.1947, providing for an award of reasonable costs and attorney fees where compensation has been denied and the claim is later found to be compensable. We decline to rule on this issue because it was not timely raised.
The constitutionality of this statute was not raised in proceedings before the Workmen’s Compensation Division nor in the district court. Neither ruled thereon, and the issue was raised for the first time on appeal. Under such circumstances, the issue is untimely and will not be considered on appeal. Britt v. Cotter Butte Mines, 108 Mont. 174, 89 P.2d 266; State ex rel. Anderson v. State Bd. of Equal., 133 Mont. 8, 319 P.2d 221.
The judgment of the district court is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES DALY and JOHN C. HARRISON, concur.
|
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MR. JUSTICE HARRISON
delivered the opinion of the Court.
This appeal arises from an action for recovery on four promissory notes, three of which were signed and executed by appellant, Ambrose Heimer, and the fourth of which was signed and executed by Joseph Heimer and guaranteed, by Ambrose Heimer.
The original complaint was filed June 9,1978, by First National Bank and Trust of Wibaux. The remaining plaintiffs were added subsequently. After preliminary pleadings trial was set for May 14, 1979.
In response to interrogatories of February 7, 1979, Am- brose Heimer stated, “Defendant Ambrose Heimer intends to make Edward Towe a defendant by way of crossclaim to assert this.”
The original trial date was vacated in May 1979 and leave to file an amended complaint pursuant to stipulation of the parties was granted September 4, 1979. Edward Towe’s deposition was taken July 2, 1980. A tentative trial date in October was vacated because of illness of counsel, and in August 1980 a new trial date was set for September 11. On September 4, Heimer filed a motion for continuance supported by an affidavit of Ralph Herriott, appellants’ counsel, claiming Grant Investment Funds is a partnership and not all partners had been joined in the lawsuit and also claiming not all of the real parties in interest had been made party to the lawsuit. The motion was granted, and a new trial date set for September 30. That trial date was vacated on September 10 and reset for November 24, and the parties were ordered to complete discovery by November 10, 1980.
On November 10, 1980, defendants Ambrose and Joseph Heimer filed an amended answer, which included a counterclaim, cross-complaint and two third party complaints. The District Court granted respondents’ motion to strike the amended answer, cross-complaint and third party complaints by order of November 24. Trial was held on November 24, 1980, and judgment entered in favor of respondents on March 3, 1981.
Appellants set out three issues for review by this Court: (1) Whether the District Court erred in failing to allow Am-brose Heimer to join Edward Towe and James Updike as third party defendants; (2) whether the named plaintiffs are real parties in interest; and (3) whether attorney fees of 10% of the amount due on the promissory notes were properly assessed.
The source of the first issue is appellants’ amended answer which included a counterclaim, cross-complaint and two third party complaints. The amended answer, dated No vember 10, 1980, included third party complaints against Edward Towe and later James Updike.
In granting respondents’ motion to strike the appellants’ amended answer, including the two third party complaints, the District Court determined that the contentions proposed by the appellants constituted, “at best,” a permissive pleading “the substance of which would not be effected by not including it in the present trial.”
Respondents argue that since the amended answer was filed more than twenty days after it was served and without leave of the court of written consent of the adverse party, it was not properly before the court. Rule 15(a), M.R.Civ.P. Respondents also argue the attempt to add additional parties was defective for the same reasons under Rule 21, M.R.Civ.P.
Even if the appellants had moved the court properly to amend the pleadings and add additional parties, respondents claim, the District Court properly exercised its discretion in granting the motion to strike in that the amendment was untimely.
As previously noted, the appellants’ amended answer included a cross-complaint, countercomplaint, and two third party complaints. Since these various complaints were not severed from one another and were included as part of the amended answer Rule 15(a), M.R.Civ.P., governs.
Appellants filed their amended answer on November 10, 1980. Respondents subsequently filed a motion to strike which is the only method of determining whether an amended pleading has been improperly filed. Westlake v. District Court (1946), 118 Mont. 414, 167 P.2d 588; Paramount Publix Corp. v. Boucher (1933), 93 Mont. 340, 19 P.2d 223.
After a responsive pleading is served or twenty days after an original pleading is served, a party may amend his pleading only by leave of court or by written consent of the adverse party. Rule 15(a), M.R.Civ.P.
Appellants here did not have written consent of re spondents and filed their amendment without leave of court. Therefore, the District Court did not err in granting the motion to strike the amended answer.
The second issue to be considered is whether the named plaintiffs, First National Bank and Trust of Wibaux (hereinafter First National), Richey National Bank, Towe Foundation and Grant Investment Fund, are real parties in this action.
The District Court’s findings of fact will not be disturbed by this Court if they are supported by the evidence. Washington Water and Power v. Morgan Electric Co. (1968), 152 Mont. 126, 448 P.2d 683; Rule 52(a), M.R.Civ.P.
The District Court found that First National was the holder of legal title to each of the promissory notes in question and that it holds trust authority and powers regarding each note. The court concluded that First National was the real party in interest and was entitled to receive the monies owed under each promissory note.
We find substantial evidence both in the transcript and the exhibits supporting the District Court and therefore affirm its finding.
Appellants also claim as error the District Court’s award of attorney fees. The District Court awarded attorney fees of 10% of the unpaid principal and interest of each note. This was the minimum amount agreed upon in each of the notes and was also supported by an hourly documentation of attorney time by respondents’ counsel.
The determination of reasonable attorney fees is within the discretion of the District Court and will not be changed unless abuse of discretion is shown. Kadillak v. Montana Dept. of State Lands (1982), Mont., 643 P.2d 1178, 39 St.Rep. 773; Glick v. State of Montana (1974), 165 Mont. 307, 528 P.2d 686; Luebben v. Metlen (1940), 110 Mont. 350, 100 P.2d 935. We find no abuse of discretion here.
Affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES SHEA and MORRISON concur.
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CHIEF JUSTICE TURNAGE
delivered the Opinion of the Court.
Jeffrey Sanders (Sanders) appeals from the decision of the Thirteenth Judicial District Court, Yellowstone County, granting Gaugers Sales Corp.’s (Gaugers) and Yellowstone County’s motions for summary judgment in this quiet title action. We reverse.
We find the following issues dispositive on appeal:
1. Did Sanders have standing to institute this quiet title action?
2. Did the Yellowstone County Treasurer have jurisdiction to issue a tax deed on August 3,1992, to Yellowstone County for Lot 7C, Block 8 in Emerald Hills Subdivision?
The subject property was sold by Emerald Hills Development Company (EHDC) on a 1977 contract for deed. The buyers thereafter in 1979 assigned their interest in the contract to Thomas E. Hannah and others. The contract has never been terminated. In 1980, EHDC quitclaimed its interest in the property, subject to the Thomas E. Hannah buyer’s interest in the 1977 contract, to Kenneth and Mary McKenzie. Following a series of additional conveyances, the EHDC interest was conveyed in April of 1993 to appellant Jeffrey Sanders.
In 1989 Yellowstone County received a Tax Sale Certificate to the subject property. On August 3, 1992, the Yellowstone County Treasurer issued a tax deed for the property to Yellowstone County.
On December 9, 1992, Yellowstone County sold the property on contract to Gaugers.
In April of 1993, as stated above, appellant Jeffrey Sanders by conveyance received title to the property subject to the interest of Thomas E. Hannah under the 1979 assignment of the contract for deed. On November 30, 1993, Sanders instituted this quiet title action, arguing that the Yellowstone County Treasurer was without jurisdiction to issue the tax deed to Yellowstone County because the notice requirements of §§ 15-18-111 and -212, MCA, had not been met. Gaugers subsequently acquired and recorded a quitclaim deed from Thomas E. Hannah.
Yellowstone County properly notified Sanders’ predecessor in interest of the pending issuance of a tax deed. Yellowstone County did not notify Thomas E. Hannah of its intent to issue a tax deed. The published notice likewise did not list Thomas E. Hannah as an interested party. It is undisputed that, at the time notice was given, Thomas E. Hannah was an interested party as defined in § 15-18-111, MCA, and was entitled to notice under § 15-18-212, MCA.
The case was submitted to the District Court on cross-motions for summary judgment. The court granted Yellowstone County’s and Gaugers’motions for summary judgment and denied Sanders’motion for summary judgment. The court’s decision was based on Sanders’ lack of standing to challenge the issuance of the tax deed.
Issue 1
Did Sanders have standing to institute this quiet title action?
Section 70-28-101, MCA, provides that a quiet title action may be brought
by any person or persons, whether in actual possession or not, claiming title to real estate against any person or persons, both known and unknown, who claim or may claim any right, title, estate, or interest therein or lien or encumbrance thereon adverse to plaintiff’s ownership or any cloud upon plaintiff’s title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued, for the purpose of determining such claim or possible claim and quieting the title to said real estate.
Sanders meets the criteria set forth in this section, as he is a person claiming title to real estate against another person (Gaugers) who claims an interest adverse to his own. Sanders alleges, in essence, that Gaugers’ adverse claim of title was acquired via tax deed proceedings which were defective and which, as a result, divested the Yellowstone County Treasurer of jurisdiction to issue the tax deed.
In addition to being a party entitled to bring a quiet title action, however, Sanders must establish standing to challenge the tax deed proceeding. This Court has determined that the following criteria must be satisfied to establish standing:
(1) The complaining party must clearly allege past, present or threatened injury to a property or civil right; and (2) the alleged injury must be distinguishable from the injury to the public generally, but the injury need not be exclusive to the complaining party.
Stewart v. Bd. of Cty. Com’rs of Big Horn Cty. (1977), 175 Mont. 197, 201, 573 P.2d 184, 186.
In this quiet title action, Sanders has alleged a present injury to a property right. Sanders maintains that Gaugers’ asserted interest, allegedly acquired via defective proceedings which rendered Gaugers’ tax deed void, is a cloud on his title. This allegation is clearly personal to himself, as opposed to an injury to the public in general. See Stewart, 573 P.2d at 186. Thus, Sanders meets the standing criteria.
Contrary to the allegations raised in the dissent, no Montana statute or case law requires Sanders to have an interest in the subject property at the time of the issuance of the tax deed in order to institute a quiet title action. The cases cited by the dissent are clearly distinguishable in that Utah’s statutory scheme provides a clearly defined statute of limitations. The dissent’s concern over the lack of finality in tax deed cases is well taken; however, it is not the role of this Court to create such finality absent specific statutory authority.
Although Sanders did not have an interest in the property when the treasurer issued the tax deed, he later received a quit claim deed to the property. It is this purported interest Sanders now seeks to protect.
We note that the application of the Stewart standing criteria in this case produces a different result on the standing issue than we reached in Bowen v. McDonald (1995) [276 Mont. _], 915 P.2d 201. The difference arises from the different natures of the two actions~in Bowen, the sole basis for standing was the claimed statutory right to redeem; here, the basis for standing is the quiet title statute, § 70-28-101, MCA. We hold that the District Court erred in concluding that Sanders lacked standing to institute this quiet title action.
Issue 2
Did the Yellowstone County Treasurer have jurisdiction to issue a tax deed on August 3, 1992, to Yellowstone County for Lot 7C, Block 8 in Emerald Hills Subdivision?
We review a district court’s grant of summary judgment using the same standard utilized by the district court. Summary judgment is proper only when no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.P.; Bruner v. Yellowstone County (1995), 272 Mont. 261, 264, 900 P.2d 901, 903.
Sanders argues that the Yellowstone County Treasurer did not have jurisdiction to issue the tax deed. The parties in their Statement of Agreed Facts (SAF) agreed that Thomas E. Hannah was an interested party, entitled to notice prior to the issuance of the tax deed. The parties in their SAF agreed that Yellowstone County failed to notify Thomas E. Hannah. Sanders argues that because Yellowstone County failed to notify Thomas E. Hannah of the impending issuance of the tax deed, the treasurer was without jurisdiction to issue a tax deed.
The notice requirements prior to the issuance of a tax deed, § 15-18-212, MCA, state:
(1) Not more than 60 days prior to and not more than 60 days following the expiration of the redemption period provided in 15-18-111, a notice must be given as follows:
(a) for each property for which there has been issued to the county a tax sale certificate or for which the county is otherwise listed as the purchaser or assignee, the county clerk shall notify all persons considered interested parties in the property and the current occupant of the property, if any, that a tax deed may be issued to the county unless the property tax lien is redeemed prior to the expiration date of the redemption period ....
...
(4) The notice required under subsections (1) and (2) must be made by certified mail, return receipt requested, to each interested party and the current occupant, if any, of the property. The address to which the notice must be sent is, for each interested party, the address disclosed by the records in the office of the county clerk and, for the occupant, the street address or other known address of the subject property.
Subsection (5) sets forth the specific publication requirements when the address of the interested party is not known. Section 15-18-212(5), MCA.
Section 15-18-111(3), MCA, defines “interested part/’ for use in this part, as any
mortgagee, vendor of a contract for deed or the vendor’s successor in interest, lienholder, or other person who has a properly recorded interest in the property.
Thomas E. Hannah was an assignee of the 1977 contract for deed to the property and was an interested party under this section. Yellowstone County and Gaugers agreed that Thomas E. Hannah was an interested party in the SAF. Statement of Agreed Fact No. 18 reads:
Yellowstone County failed to send notice of its intent to issue a tax deed to Thomas E. Hannah. The published notice did not set forth the name of Thomas E. Hannah. At the time the notice of issuance was given and at the time the tax deed was issued Thomas E. Hannah was an interested person, entitled to notice of sale. A title report issued to the county indicated that Thomas E. Hannah was one of the record holders of the vendees interest in the property. Clearly, the law required Yellowstone County to notify Thomas E.
Hannah of the impending issuance of the tax deed. The required notice was not given in this case.
We have recently held that failure to strictly comply with the statutory notice requirements for the issuance of a tax deed results in the treasurer being without jurisdiction to issue a tax deed. Moran v. Robbin (1993), 261 Mont. 478, 483, 863 P.2d 395, 400. In Moran, the property owners challenged the sufficiency of notice given pursuant to § 15-18-212, MCA. Due to the failure to give proper notice as required by § 15-18-212, MCA, we concluded that the treasurer was without jurisdiction to issue a tax deed. Moran, 863 P.2d at 400. In reversing the district court, we stated:
Every essential and material step required by the tax deed statutes must be strictly followed. [Citation omitted.] ...
A critical element in the process of applying for a tax deed requires the giving of notice by the tax deed applicant to the owner of the real property. The giving of notice is jurisdictional; if the legal requirements with respect to notice are not complied with, a county treasurer may not legally issue a tax deed. [Citation omitted.] ... A tax deed issued without the required proof of notice is void. [Citation omitted.]
....
... [T]he giving of notice is jurisdictional, and unless the statutory requirements with respect to such notice are met, a tax deed may not issue.
Moran, 863 P.2d at 398-99 (emphasis added). We went on to hold that because the treasurer acted without jurisdiction, the deed was “void ab initio.” Moran, 863 P.2d at 400.
In the present case, Yellowstone County and Gaugers admitted in the Statement of Agreed Facts that notice was not given to Thomas E. Hannah, an interested party, as required by § 15-18-212, MCA. Because the requirements of § 15-18-212, MCA, were not met, the treasurer did not have jurisdiction to issue the deed and the deed is therefore void ab initio.
We conclude that the District Court erred in determining that Sanders did not have standing to challenge the issuance of the tax deed. Sanders properly instituted this quiet title action. We hold that because the notice requirements of § 15-18-212, MCA, were not satisfied, the Yellowstone County Treasurer did not have jurisdiction to issue a tax deed for the Thomas E. Hannah interest in the subject property and the tax deed issued was void ab initio.
We reverse the decision of the District Court granting Yellowstone County’s and Gaugers’ motions for summary judgment.
JUSTICES GRAY, ERDMANN, NELSON and HUNT concur.
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JUSTICE TRIEWEILER
delivered the Opinion of the Court.
On April 19, 1993, Leffingwell Ranch, Inc., and Peckenpaugh Ranches, Inc., filed a complaint in the District Court for the Sixth Judicial District in Park County in which they sought a declaratory judgment regarding the status of Miles Creek Road and the extent to which the defendant, Elk Park Ranch, Inc., could use that road. Following a nonjury trial, the District Court entered its judgment and decree in which it held that Miles Creek Road was not a county road and that no public prescriptive easement had ever been established over the road. The decree limited Elk Park Ranch’s easements over Miles Creek Road to their historical use and specifically enjoined Elk Park Ranch from accessing its land development over the road. Elk Park Ranch appeals the District Court’s decree. We affirm the District Court.
We address two issues on appeal:
1. Did the District Court err when it determined that Miles Creek Road was not a county road because no public prescriptive easement had ever been established over that road?
2. Did the District Court err when it limited Elk Park Ranch’s use of Miles Creek Road to its historical use and enjoined Elk Park from accessing its land development by means of that road?
FACTUAL BACKGROUND
Leffingwell Ranch, Inc., is a family ranch corporation which owns real property in the Brackett Creek area of Park County. Peckenpaugh Ranches, Inc., is also a family ranch corporation with land holdings in the Brackett Creek area. In 1988, Elk Park Ranch, Inc., purchased substantial land in the Brackett Creek area from the Brackett Creek Grazing Association. In 1993, Elk Park filed a quit claim deed dividing its property into 174 20-acre aliquot parcels. Elk Park’s intent was to develop and sell these smaller parcels. Elk Park planned to use Miles Creek Road, which crosses both the Leffingwell Ranch and the Peckenpaugh Ranch, to access the 20-acre parcels.
Miles Creek Road leaves the main Brackett Creek Road at a point on the Leffingwell Ranch and continues in a westerly direction for approximately one-quarter mile to the Leffingwell Ranch compound. The road then turns south and crosses Brackett Creek and continues across the northeast corner of the Peckenpaugh Ranch. As it leaves the Peckenpaugh Ranch, the road forks and one branch returns northeast to the Leffingwell Ranch; the other branch continues southeast into Elk Park Ranch’s property.
Miles Creek Road was originally developed by James Proffitt, J.W Camp, James Curdy, and Jim Christie during the late 1890s as an access route to their homesteads. In 1904, Mary Leffingwell’s father, Charles Bridgman, purchased what is now the Leffingwell Ranch from James Proffitt. In 1927, Bridgman granted a private easement over Miles Creek Road to J.W. Camp and James Curdy. James Curdy, in turn, granted a similar easement to J.W. Camp. Both easements granted rights-of-way thirty feet in width over the existing road for purposes of ingress and egress and required that the rights-of-way not be fenced, that any gates in place across the grantor’s property be kept closed at all times, and that the failure to do so would result in the loss of the easements. Camp was a predecessor in interest to Elk Park. However, when the easements were executed in 1927 they were only intended to benefit the small portion of land owned at that time by Camp and Curdy. The property that Elk Park now intends to access includes several additional sections of land which were acquired after the easements were conveyed in 1927.
The Bridgmans rerouted the lower portion of Miles Creek Road in the early 1930s through what is now the Leffingwell Ranch compound. For the most part, the Leffingwells maintained the road, although in the spring of 1948 Park County repaired the bridge on Miles Creek Road across Brackett Creek in exchange for gravel from the Leffingwell Ranch property. In the late 1970s a private logging company rebuilt this same bridge with the Leffingwell’s permission.
County road records indicate nominal expenditures for Miles Creek Road during the years 1953 and 1954. Although County road crews sometimes plowed the road up to the Leffingwells’ buildings dining the 1950s and 1960s, the plowing was done out of courtesy rather than as part of an official road maintenance program. The County ceased all work on the road by 1968.
Both the Leffingwells and the Peckenpaughs have always maintained gates on Miles Creek Road. Although at times they have given permission to members of the public to travel over the road for access to Forest Service land for recreational purposes or hunting, at least one of the gates located on the Leffingwell Ranch has been regularly locked, particularly during hunting season, since the early 1950s. All of the owners and parties in interest in that area, including Elk Park Ranch, have maintained separate locks on various gates on Miles Creek Road.
In 1972, a group of local hunters and sportsmen tried to have Miles Creek Road opened for access as a public road. After conducting a hearing, the Park Comity Commissioners concluded that the road was private. This position was reaffirmed in 1988 by the Park County Attorney in a letter to the local title company. In his letter, the Comity Attorney stated:
My conclusion at this time is that it would be very difficult for Park County to maintain that [Miles Creek Road] is a public road. The records at the court house only show that it was maintained at various times, but a finding by past commissioners that it was a private road indicates Park County never intended to assert control over it. From the facts presented to me, it is not clear that a prescriptive right was ever established on the road. Even if that is established, it appears it may well have been abandoned.
However, in a letter to the Leffingwell Ranch in 1993, the County Attorney reversed his position and advised the Leffingwells that the Park County Commissioners had decided that the road was in fact a county road and that the Leffingwells could no longer maintain a gate across it.
In response to the County Attorney’s 1993 letter, both the Leffingwell Ranch and the Peckenpaugh Ranch filed this action in the Sixth Judicial District Court. In their complaint, the plaintiffs alleged that Miles Creek Road is a private road to which Park County has no right or interest; that any attempt by Elk Park to access its planned development by means of Miles Creek Road would be in derogation of the intention and contemplation of the original 1927 agreements and would result in an overburdening of the easements; and that any attempt by Elk Park to access land not contemplated by the 1927 easements for any purposes other than for agricultural purposes would constitute a misuse of the easements.
Following a hearing, the District Court entered its judgment and decree. The Court concluded that Park County has no legal right or interest in Miles Creek Road; that no prescriptive easement has ever been established over the road; and that the 1927 easements were created and remain solely for the purpose of ingress and egress for agricultural purposes. The court permanently enjoined Elk Park from accessing its property by means of Miles Creek Road for development purposes or for anything other than agricultural purposes. The court further enjoined Elk Park Ranch from accessing that portion of its properties which were not contemplated by the 1927 easements and to which the 1927 easements are not appurtenant.
ISSUE 1
Did the District Court err when it determined that Miles Creek Road was not a county road because no public prescriptive easement had ever been established over that road?
We review a district court’s findings of fact to determine whether they are clearly erroneous. Rule 52(a), M.R.Civ.P. See also Daines v. Knight (1995), 269 Mont. 320, 324, 888 P.2d 904, 906. We review a district court’s conclusions of law to determine whether the court’s interpretation of the law is correct. Carbon County v. Union Reserve Coal Co. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.
In order to establish an easement by prescription, the party claiming the easement “must show open, notorious, exclusive, adverse, continuous and uninterrupted use of the easement claimed for the full statutory period.” Public Lands Access Assoc. v. Boone & Crockett Club Foundation (1993), 259 Mont. 279, 283, 856 P.2d 525, 527 (quoting Keebler v. Harding (1991), 247 Mont. 518, 521, 807 P.2d 1354, 1356). Since 1953, the statutory period has been five years. Section 70-19-404, MCA. Prior to that time the statutory period was ten years. Section 93-2507, RCM (1947). The burden is on the party seeking to establish the prescriptive easement to prove all elements of prescription. Public Lands Access, 259 Mont. at 283, 856 P.2d at 527.
In this case, Elk Park Ranch contends that the District Court erred when it concluded that a public prescriptive easement had not been established over Miles Creek Road. Elk Park maintains that the public’s use of Miles Creek Road for recreational and other purposes was adverse and was not by permission of the underlying landowners. Elk Park further maintains that there was an assumption of control of the road by Park County, which performed maintenance of the road in a continuous and uninterrupted manner for at least twelve years.
It is well-established that when permissive use is shown, an easement cannot be established since prescription is based on adverse use. Tanner v. Dream Island, Inc. (1996), [275 Mont. 414], 913 P.2d 641, 648.
George Leffingwell testified that in the 1960s he personally gave permission to agents of the Forest Service to access the Bangtail Ranger Station and to Montana State University to access a weather station it had established in the Bangtail area. John Hamm, a local rancher and a member of the Brackett Creek Grazing Association, which owned Elk Park’s property from 1965 to 1988, testified that he has always obtained permission from the Leffingwells to access Forest Service land over Miles Creek Road. In addition, Sue Ward, who owned Elk Park’s property from 1951 to 1964, testified that she obtained permission from the Leffingwells on a yearly basis to use Miles Creek Road to access her property.
Although at times the Leffingwells did let other members of the public use the road with their permission to access Forest Service land, George Leffingwell testified that he and his brother sometimes denied permission to recreationalists who sought access to public lands over Miles Creek Road. In addition to these explicit denials of access, there was evidence that the Leffingwells and the Peckenpaughs restricted access to Miles Creek Road with locked gates, private road signs, no trespassing signs, and orange painted posts.
Testimony at trial established that even Elk Park treated Miles Creek Road as a private road and denied access to members of the public. In fact, in 1989 one of Elk Park’s officers put a lock on one of the gates on Miles Creek Road because he had a hunting camp set up on Canyon Creek and did not want other hunters entering the area. As the District Court stated in its findings of fact: “It is grossly inconsistent for... Elk Park to contend they could so lock up the Miles Creek Road for their own use and purposes, and now contend it is a public road.”
In Descheemaeker v. Anderson (1957), 131 Mont. 322, 325-26, 310 P.2d 587, 589, we held that to establish a public right-of-way by prescription
the evidence must be convincing that the public have pursued a definite, fixed course, continuously and uninterruptedly, and coupled it with an assumption of control and right of use adversely under a claim or color of right, and not merely by the owner’s permission, over it for the statutory period ....
Plaintiffs produced substantial credible evidence that use of Miles Creek Road by members of the public was with their permission. However, Elk Park contends that Park County’s maintenance of the road, which was “by the public and for public good,” is sufficient to demonstrate the elements of prescription. Elk Park maintains that the County’s occasional acts of grading and plowing the road are adequate to establish Miles Creek Road as a public road.
This Court has held that adverse use by the public combined with the grading and maintaining of a road without the landowner’s permission is sufficient to establish adverse control. Rasmussen v. Fowler (1990), 245 Mont. 308, 312, 800 P.2d 1053, 1056; McClurg v. Flathead County Comm’rs (1980), 188 Mont. 20, 24, 610 P.2d 1153, 1156. For example, in McClurg, we determined that a public prescriptive easement existed when most members of the public had never asked for permission to use the road and when the County had graded, graveled, and performed maintenance on the road for a period in excess of twenty-five years. McClurg, 188 Mont. 20, 610 P.2d 1153.
In this case, however, the testimony at trial established that most of the limited work which Park County performed on Miles Creek Road was based on courtesy and cooperation with the local ranchers and not because of public duty. In addition, the testimony established that any work which was performed was not part of any regularly scheduled maintenance program and ceased after 1968.
Clarence Curdy lived on Miles Creek Road from 1918 until 1936. He testified that the Camps and the Curdys maintained the road with a horse-pulled drag during that period. He further testified that he never saw the County perform any kind of maintenance on the road in those years. Russell Bridgman, who lived on the Leffingwell Ranch on and off from 1912 until 1940 confirmed Curdy’s testimony. He testified that he had never seen Park County road crews on the road past the Leffingwell Ranch compound during that time.
Mary Leffingwell, who has lived on the Leffingwell Ranch since 1914, testified that in the early years local residents maintained Miles Creek Road. In later years, the Park County road crews would grade the road on their way to the Leffingwell Ranch to “warm up and use the telephone or borrow equipment or use the shop.”
George Leffingwell testified that in 1948 or 1949 the County replaced the bridge over Brackett Creek near the Leffingwell Ranch compound in exchange for gravel from the ranch. At the hearing, George did not recall that Park County had ever performed any regular maintenance or repair work on Miles Creek Road, although he stated that at times members of the county road crews would run the snowplow as a courtesy into the Leffingwell Ranch compound. In addition, George testified that in 1959, when he was driving a truck for the County, he was permitted to take some gravel home to gravel a portion of Miles Creek Road. In exchange, George permitted Park County to take rock and gravel from the Leffingwell Ranch without charge. George used his own ranch equipment to spread the gravel.
Sue Ward, who owned Elk Park’s property from 1951 to 1964, testified that at one time she and her husband Ted had asked the County to repair Miles Creek Road, but the County had refused because “it wasn’t in their territory.” The Wards lived in the Brackett Creek area from 1947 until 1974. Sue Ward testified that she had not seen any Park County road crews on Miles Creek Road during that time.
Kiel Peckenpaugh testified that he hauled calcite from a local mine to improve the Peckenpaugh’s portion of the road and hired private crews to work on the road. He testified that he had not seen Park County crews working on the road.
Robert Youngberg, who was Park Comity road foreman from 1968 until 1989, testified that the County did not perform any work on Miles Creek Road after 1968. He said that prior to that time the County had occasionally bladed or plowed the road but he acknowledged that it was common practice in his early years with the County to plow out ranchers’ private lanes as a courtesy. Although Youngberg testified that Miles Creek Road had been designated a county road (56B) on the official county road maps, there was no evidence that anyone had ever petitioned for the establishment of Miles Creek Road or attempted to dedicate the road to the public.
The District Court reviewed testimony offered by the defendants at trial and found that:
[E]ven assuming the defense testimony to be true, it is far from sufficient to prove that the Miles Creek road had ever become a public road by statutory petition and process, or by deed, dedication, condemnation or prescription, and it was far from sufficient to offset or overcome the overwhelming evidence presented by plaintiffs.
Based on our review of the record, we hold that the District Court’s findings of fact are supported by substantial evidence and are not clearly erroneous. We therefore affirm the District Court’s conclusion that the public has never established a prescriptive easement over Miles Creek Road and has no right to travel over the road without permission of the adjacent landowners.
ISSUE 2
Did the District Court err when it limited Elk Park Ranch’s use of Miles Creek Road to its historical use and enjoined Elk Park from accessing its land development by means of that road?
As stated above, our review of a district court’s findings of fact and conclusions of law is two-fold. We review a district court’s findings of fact to determine whether they are clearly erroneous; we review a district court’s conclusions of law to determine whether they are correct. Daines v. Knight (1995), 269 Mont. 320, 324, 888 P.2d 904, 906; Carbon County v. Union Reserve Coal Co. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.
In this case, the easements over Miles Creek Road were created by general warranty deeds in 1927 and provided for ingress and egress to the Camp and Curdy homesteads. The easements further required that the rights-of-way not be fenced and that any gates in place across the grantor’s property be kept closed at all times. The general warranty deeds provided that abuse of the terms of the easements would result in the loss of the easements. Based on the terms of the easements and the historical use of the easements, the District Court concluded that:
[A]ny expansion or inconsistent uses of the easements created by the 1927 warranty deeds would constitute an overburdening of these easements, and therefore would be in derogation of the common law and section 70-17-106, MCA, and defendants should be enjoined therefrom.
Section 70-17-106, MCA, provides that: “The extent of a servitude is determined by the terms of the grant or the nature of the enjoyment by which it was acquired.” In this case, the warranty deeds which created the 1927 easements did not specifically set forth the extent of the easements other than to provide that the Camps and the Curdys could use Miles Creek Road for “ingress and egress.” However, as we stated in Strahan v. Bush (1989), 237 Mont. 265, 268, 773 P.2d 718, 720:
If the easement is not specifically defined, it need only be such as is reasonably necessary and convenient for the purpose for which it was created. It is sometimes held ... where the grant or reservation of an easement is general in its terms, that an exercise of the right, with the acquiescence and consent of both parties, in a particular course or manner, fixes the right and limits it to that particular course or manner.
In this case, Miles Creek Road and the 1927 easements have never been used to access more than two or three homesteads and have only been employed for related agricultural purposes. When the road was established in the 1880s, it was probably no more than a horse or wagon trail to the early Camp, Curdy, and Christie homesteads. When the easements were conveyed in 1927 only the Camps, Curdys, and Bridgmans lived on the road, and all of them made their living from agricultural pursuits. Thus, at the time the easements were granted, the “ingress and egress” set forth by the terms of the general warranty deeds clearly did not contemplate anything more than limited access by the Camps and the Curdys to their property for agricultural purposes. In addition, the written requirement that the gates be kept closed and the right-of-way not be fenced is evidence of the fact that the parties did not contemplate substantial traffic or intend that the easements could be enlarged. As we stated in Lindley v. Maggert (1982), 198 Mont. 197, 199, 645 P.2d 430, 432:
[N]o use may be made of the right-of-way different from the use established at the time of the creation of the easement so as to burden the servient estate to a greater extent than was contemplated at the time the easement was created.
In this case, Elk Park has divided its property into 174 parcels and has indicated that it intends to resell the individual parcels for development. Elk Park has further indicated that it intends to access the developments by means of Miles Creek Road. As a result, 174 families would use Miles Creek Road, which travels directly though the Leffingwell Ranch compound, for ingress and egress to their homes. As the District Court noted in its findings of fact:
A very significant factor in this case is that Miles Creek road runs right through the Leffingwell Ranch and building compound and that they not only have had a family cattle business there for about 90 years, but since 1934 have operated a dude ranch under the name and style of G Bar M Guest Ranch. This limits its guests to ten or fifteen at a time so that the guests can have a more personal experience of the old west and cattle ranching. Any expansion of the use of Miles Creek road beyond its present use would seriously impact the Leffingwells’ guest ranch business, which is an essential monetary supplement to their cattle operation.
Furthermore, the District Court took note of the fact that Elk Park Ranch was aware of the restrictions on its access to its property in 1988 when it demanded a $10,000 reduction in the purchase price of its property for that reason, and in 1989 when it filed suit against Security Title of Park County, Inc., and the American Title Insurance Company complaining that the easements “severely restricted access.” In light of Elk Park’s prior lawsuit, the District Court noted the inconsistency of Elk Park’s present position and stated that “Elk Park should be judicially estopped from now taking a contrary position about the road.”
Elk Park also challenges the District Court’s conclusion that the easements cannot be enlarged to access property not owned by Camp or Curdy in 1927 when the easements were conveyed. Elk Park contends that although most of the property it intends to access by means of Miles Creek Road is property which was acquired after 1927, that property was later acquired by one of Camp’s successors and is contiguous to the remainder of the Camp property.
When the easements were executed in 1927, the Camps owned only Section 8 and the NV5 of Section 18, TIN, R8E, and the Curdys only owned the SV2 of Section 6, TIN, R8E, and the WV2 of Section 20. Although the 1927 easements limit Elk Park’s access to Section 8 and the NkS of Section 18, Elk Park now proposes to use the 1927 easements to access the following additional property which was not owned by either the Camps or the Curdys in 1927:
All of Sections 17, 18, and 21, E%20; Lots 1, 2 and SV2NEV4 of Section 19; and NV2NWV4NEV4, NVfcNEViNEVi,, NWV4NEV4 and EV2NWV4 of Section 18, TIN, R8E, M.P.M.
The 1927 easements are not appurtenant to any of the property which Elk Park now proposes to access.
As the Court of Appeals of Arizona noted:
It is elementary law that an easement cannot be extended by the owner of the dominant tenement to other land owned by him adjacent to or beyond the land to which it is appurtenant, for such extension would constitute an unreasonable increase of the burden of the servient tenement.
DND Neffson Co. v. Galleria Partners (Ariz. App. 1987), 745 P.2d 206, 207.
In this case, the 1927 easements are appurtenant only to those lands held by the grantees at the time the easements were granted, and therefore cannot be used to access after-acquired property.
We therefore hold that the District Court correctly concluded that F.lk Park cannot access its development over the 1927 easements because the use proposed by Elk Park was not contemplated by the original parties to the easements, would be inconsistent with the historical use of the easements, and would constitute an improper burdening of those easements. We further hold that the District Court correctly concluded that Elk Park cannot use the easements to access property which was not owned by James Camp in 1927 because easements cannot be used to access after-acquired property. We therefore affirm the order of the District Court.
CHIEF JUSTICE TURNAGE, JUSTICES NELSON, HUNT and LEAPHART concur.
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JUSTICE GRAY
delivered the Opinion of the Court.
The issue before us is whether the Workers’ Compensation Court erred in concluding that, pursuant to § 39-71-709, MCA (1985), claimant could withdraw his election to proceed under § 39-71-703, MCA (1985), and seek benefits under §§ 39-71-705 through 39-71-708, MCA (1985). We hold that the court did not err and, therefore, affirm its grant of claimant’s motion for summary judgment.
The relevant facts are uncontested. Claimant Timothy Lund (Lund) was employed by Garden City Plumbing and Heating, Inc. (Garden City) on July 8,1986, when he was injured in the course and scope of his employment. Garden City’s workers’ compensation carrier, the State Compensation Mutual Insurance Fund (State Fund), accepted liability for the injury. The parties engaged in litigation concerning the injury; that litigation ended in 1990 with a determination by the Workers’ Compensation Court that Lund was entitled to receive 500 weeks of permanent partial disability benefits pursu ant to § 39-71-703, MCA (1985), at a weekly rate of $13.34. The State Fund paid benefits pursuant to the court’s order. The parties did not enter into a settlement or release of the claim.
On September 9, 1992, Lund notified the State Fund that he was withdrawing his election to proceed under § 39-71-703, MCA (1985), and electing to receive benefits under §§ 39-71-705 through 39-71-708, MCA (1985). He relied on § 39-71-709, MCA (1985), as authority for withdrawing his earlier election.
Lund filed a petition for hearing regarding the change of election on December 4, 1992, and the State Fund responded. Both parties subsequently moved for summary judgment. The Workers’ Compensation Court granted Lund’s motion for summary judgment and denied the State Fund’s motion. The State Fund appeals.
Our standard in reviewing a grant of summary judgment is the same as that used initially by the trial court under Rule 56, M.R.Civ.P. Minnie v. City of Roundup (1993), 257 Mont. 429, 431, 849 P.2d 212, 214. We determine whether there is an absence of genuine issues of material fact and whether the moving party is entitled to judgment as a matter of law. Minnie, 849 P.2d at 214. As noted above, the facts are not disputed here; each party asserted entitlement to judgment as a matter of law. The Workers’ Compensation Court concluded that § 39-71-709, MCA (1985), authorized Lund to withdraw his election at any time and, on that basis, granted his motion for summary judgment. We review a court’s legal conclusion to determine whether it is correct. Steer, Inc. v. Dep’t of Revenue (1990), 245 Mont. 470, 474-75, 803 P.2d 601, 603.
We begin by summarizing the 1985 version of Montana’s Workers’ Compensation Act, insofar as it is relevant here. Briefly stated, § 39-71-709(1), MCA (1985), permits a claimant to “receive compensation under 39-71-703 or indemnity benefits under 39-71-705 through 39-71-708.” The “compensation” available under § 39-71-703, MCA (1985), is the weekly permanent partial disability benefit based on an “actual diminution in the worker’s earning capacity measured in dollars[;]” the disability benefit is available for a maximum of 500 weeks. The benefit available pursuant to §§ 39-71-705 through 39-71-708, MCA(1985), purports to indemnify a claimant for possible loss of future earning capacity resulting from injuries to specified body members. Hartman v. Staley Continental (1989), 236 Mont. 141, 145, 768 P.2d 1380, 1383. In the usual case, a claimant elects to seek one or the other type of benefit and proceeds only under that election.
Here, Lund successfully sought permanent partial disability benefits pursuant to § 39-71-703, MCA (1985), in the first proceeding. He was awarded, and received, disability benefits based on his actual loss of earning capacity for the maximum 500 weeks allowed by statute. See § 39-71-703, MCA (1985). His actual wage loss was 500 an hour, for a weekly rate under § 39-71-703(1), MCA (1985), of $13.34. He subsequently withdrew his election to proceed under § 39-71-703, MCA (1985), and filed a petition to seek indemnity benefits under §§ 39-71-705 through 39-71-708, MCA (1985). Pursuant to those statutes, indemnity benefits to which Lund might establish entitlement would be paid at the weekly rate provided in § 39-71-703, MCA (1985), for a maximum of 500 weeks. See §§ 39-71-705 through 39-71-708, MCA (1985). That rate apparently may be $149.50 per week. The Workers’ Compensation Court concluded that § 39-71-709, MCA (1985), authorizes the withdrawal of Lund’s initial election. The State Fund asserts error.
The State Fund’s argument is that a claimant who elects to seek permanent partial disability benefits under § 39-71-703, MCA (1985), and who receives the statutory maximum of500 weeks of such benefits, cannot thereafter withdraw the initial election and seek entitlement to benefits under §§ 39-71-705 through 39-71-708, MCA (1985). We disagree.
Section 39-71-709(3), MCA (1985), provides in pertinent part that “[a] worker who has elected to proceed under 39-71-703 may withdraw his election at any time and is entitled to receive indemnity benefits under 39-71-705 through 39-71-708....” The role of the courts in interpreting statutes is to “declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted.” Section 1-2-101, MCA. Moreover,
[t]he rules of statutory construction require the language of a statute to be construed according to its plain meaning. If the language is clear and unambiguous, no farther interpretation is required.
GBN, Inc. v. Dep’t of Revenue (1991), 249 Mont. 261, 265, 815 P.2d. 595, 597.
Lund’s right to withdraw his original election and proceed under §§ 39-71-705 through 39-71-708, MCA (1985), is controlled by the language contained in § 39-71-709(3), MCA (1985). That statute specifically authorizes a claimant to withdraw a § 39-71-703, MCA (1985), election at any time and seek entitlement to indemnity benefits. Section 39-71-709, MCA (1985), contains no time limitation within which a withdrawal of election must be made; nor do any other applicable statutes contain such time limitations. The statute clearly contemplates and authorizes circumstances such as those before us here. No interpretation is needed.
In the face of such clarity, the State Fund’s efforts to rely on time limitations for withdrawing an election — based on either the procedural status of the original proceeding or the extent to which benefits have been paid pursuant to order of the court in that proceeding — are unwarranted. The State Fund’s arguments in this regard amount to a request that this Court insert into § 39-71-709, MCA (1985), words not contained therein so as to limit the clear statutory rights provided to claimants by the Montana legislature. Such an insertion would be inconsistent with the language of the statute; indeed, it would render that language a nullity.
The State Fund contends, however, that allowing Lund to withdraw his election and seek indemnity benefits, may result in Lund receiving 1000 weeks of benefits, rather than the statutory maximum of 500 weeks contained in § 39-71-703(2), MCA. We agree that Lund already has been awarded the maximum 500 weeks of permanent partial disability benefits authorized by § 39-71-703, MCA (1985). However, Lund is not seeking additional weeks of disability benefits based on the “actual loss of earning capacity” criterion in § 39-71-703, MCA (1985). He seeks, instead, indemnity benefits under §§ 39-71-705 through 39-71-708, MCA (1985). An award of such indemnity benefits would not extend the number of weeks of § 39-71-703, MCA (1985), benefits received by Lund past the statutory maximum; it merely would result in a separate number of weeks of indemnity benefits under §§ 39-71-705 through 39-71-708, MCA (1985), at a higher weekly rate than Lund received in the previous litigation.
The State Fund also argues that allowing Lund to withdraw the earlier election and seek indemnity benefits contravenes the prohibition contained in § 39-71-709(3), MCA (1985), against a “greater benefit” in the event of such a withdrawal. The statute does not support the State Fund’s position.
The portion of § 39-71-709(3), MCA (1985), relied on by the State Fund provides that in the event of a withdrawal of election, a worker "shall not be entitled to a greater benefit, including compensation paid under 39-71-703, than he would have received if he had proceeded exclusively under 39-71-705 through 39-71-708.” The clear meaning of this language is that a claimant’s total benefits cannot exceed the benefits available had the claimant proceeded under §§ 39-71-705 through 39-71-708, MCA (1985), originally. In other words, the claimant cannot stack subsequent indemnity benefits onto earlier disability benefits in order to receive a double recovery. The maximum amount to which a claimant is entitled is that available under the indemnity statutes. Once the Workers’ Compensation Court determines the amount of indemnity benefits to which a claimant is entitled under §§ 39-71-705 through 39-71-708, MCA (1985), any amount previously received as disability compensation or benefits under § 39-71-703, MCA (1985), must be offset from that total. When the subtraction is performed, a claimant does not receive a “greater benefit” by receiving the indemnity benefits he would have received had he proceeded originally and exclusively under §§ 39-71-705 through 39-71-708, MCA (1985).
The State Fund’s final argument is that principles of res judicata or collateral estoppel apply because Lund’s entitlement to permanent partial disability benefits was finally decided in the prior litigation. We agree that Lund’s entitlement to permanent partial disability benefits -under § 39-71-703, MCA (1985), was finally decided. However, as discussed above, his entitlement to indemnity benefits is a different issue based on different statutory criteria. Lund’s entitlement to indemnity benefits was neither raised nor decided in the previous litigation.
In reality, the State Fund concedes the collateral estoppel argument by recognizing that the identical issue raised here — that is, Lund’s entitlement to indemnity benefits — was not litigated in the earlier case. One of the elements required for application of collateral estoppel, of course, is that the issue has been decided in a prior adjudication and is identical to the one presented. Smith v. Schweigert (1990), 241 Mont. 54, 58, 785 P.2d 195, 197. That element not being met here, collateral estoppel is not applicable.
With regard to res judicata, the State Fund asserts that Lund could have pursued his entitlement to indemnity benefits in the prior litigation, but chose not to do so. On that basis, it contends that res judicata applies to prevent another trial on the issue, relying on Martelli v. Anaconda-Deer Lodge County (1993), 258 Mont. 166, 852 P.2d 579; and Beck v. Flathead County (1989), 240 Mont. 128, 783 P.2d 383.
With regard to Martelli, we note that it involved collateral estoppel, not res judicata. In addition, both the workers’ compensation statutes and the facts at issue in that case are distinguishable from those before us here. Beck also is inapposite. In Beck, the defendants failed to litigate an issue during the first appeal, and we concluded that res judicata applied to bar them from arguing it during the second appeal. Beck, 783 P.2d at 386.
On the merits of this argument, we do not disagree with the State Fund about the importance of the basic proposition underlying res judicata — that a party should not be able to relitigate a matter the party has already an opportunity to litigate. See Brault v. Smith (1984), 209 Mont. 21, 25, 679 P.2d 236, 238. Nor do we disagree that Lund had the opportunity to assert entitlement to indemnity benefits in the prior litigation; indeed, the record reflects that he affirmatively chose not to do so. Res judicata is a court-made rule of law, however, the purpose of which is to provide a final resolution of legal controversies. Brault, 679 P.2d at 238. Given the clarity and specificity of the legislative authorization contained in § 39-71-709, MCA (1985), for withdrawal of an election at any time, we conclude that it would be inappropriate to apply the judicial res judicata rule to bar Lund from seeking indemnity benefits as specifically allowed by statute.
We conclude that the Workers’ Compensation Court correctly determined that Lund may withdraw his earlier election to proceed under § 39-71-703, MCA (1985), and proceed pursuant to §§ 39-71-705 through 39-71-708, MCA(1985). Therefore, we hold that the court did not err in granting Lund’s motion for summary judgment.
Affirmed.
CHIEF JUSTICE TURNAGE, JUSTICES HARRISON, HUNT, TRIEWEILER, NELSON and WEBER concur.
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JUSTICE TRIEWEILER
delivered the Opinion of the Court.
The plaintiffs, Robert Cartwright, Ferris H. (Buster) Ness, and Grace Ness, commenced this action by amended complaint filed in the District Court for the Twelfth Judicial District in Hill County. They alleged that the defendant, Blaine LeSuer, in his capacity as an agent for the defendant, The Equitable Life Assurance Society of the United States, misrepresented the terms of life insurance policies that he sold to them, that they relied on those misrepresentations to their detriment, and that as a result of the defendants’ conduct, they were entitled to compensatory and punitive damages. The defendants denied the material allegations of the plaintiffs’ amended complaint and asserted various affirmative defenses.
Following a jury trial in Hill County, the jury returned a verdict in favor of the plaintiffs in which it found that the defendants were liable to the plaintiffs for compensatory damages based on breach of fiduciary duty, negligent misrepresentation, negligence, constructive fraud, and actual fraud. The jury also found that the defendants were liable for punitive damages. They awarded actual damages to Cartwright in the amount of $144,025, to Grace Ness in the amount of $44,738, and to Buster Ness in the amount of $169,828. After considering further evidence and arguments, the jury returned punitive damage awards in favor of the plaintiffs in the amount of $30,000 against LeSuer, and in the amount of $6,127,845 against Equitable. Following its statutory review of the jury’s punitive damage awards, the District Court reduced the amount assessed against LeSuer to $18,000, and reduced the amount assessed against Equitable to $4,000,000.
LeSuer and Equitable appeal from the judgment entered against them. Cartwright and Grace and Buster Ness cross-appeal the District Court’s reduction of the jury’s punitive damage awards. We affirm the jury’s verdict, reverse the order of the District Court which reduced its verdict, and remand for entry of judgment consistent with the jury’s verdict.
Although numerous issues are raised by LeSuer and Equitable, we conclude that the following issues are dispositive of their appeals:
1. Were the plaintiffs’ claims barred by the applicable statutes of limitations?
2. Did the District Court abuse its discretion when it admitted evidence that LeSuer had similarly misrepresented the terms of policies to other individuals? If not, did the District Cotut err by precluding further evidence of the specific manner in which those persons’ claims against Equitable were resolved?
3. Was the jury’s finding that the defendants committed fraud supported by substantial evidence?
4. Was the jury’s award of actual damages supported by substantial evidence?
5. Did the District Court abuse its discretion when it refused to instruct the jury that plaintiffs could not recover for fraud in light of their failure to examine the insurance policies they purchased?
6. Was there substantial evidence to support an award of punitive damages against each defendant?
7. Should the plaintiffs’ compensatory damage awards be reduced by a percentage equal to the degree to which the jury found that each plaintiff was contributorily negligent?
8. Did the District Court err by its award of punitive damages made pursuant to § 27-1-221, MCA?
The issue raised by the plaintiffs’ cross-appeal is whether the District Court erred when, pursuant to its statutory obligation to review the jury’s punitive damage awards, it reduced the amounts of those awards.
FACTUAL AND PROCEDURAL BACKGROUND
Buster Ness had been insured by Equitable Life Assurance Company since he was eleven years old when his father purchased a life insurance policy for him. In 1950, when he was 21, he purchased his own retirement policy from Equitable.
Buster first met Blaine LeSuer in 1962 when he began purchasing chemicals from LeSuer’s chemical supply business for use in Buster’s crop spraying business. Although that business relationship ended in the 1960s, the two of them stayed in touch with each other occasionally and Buster would contact LeSuer when he had questions regarding the chemical business.
After working out of state with other firms for a period of years, LeSuer applied for employment with Equitable and received his license to sell life and disability insurance in 1980. After he became an insurance agent he continued to stop at Ness’s place of business periodically to discuss the chemical business and occasionally inquire about Buster’s or Grace’s life insurance needs.
In April 1982, Buster agreed to purchase and LeSuer agreed to sell on behalf of Equitable, a whole life insurance policy insuring the life of Grace Ness for the face amount of $25,000. Page three of the policy indicated that the premium period was thirty-five years and that the annual premium was $541.25. However, Grace testified that they were told by LeSuer that they would only have to pay premiums for four or five years and that after that time the policy would be self-sustaining. They paid the premiums for that policy through 1985. However, when they got a premium notice in 1986, they contacted LeSuer to find out why they had received an additional premium notice. According to the Nesses, he advised them “not to worry about it.” He told them that it was a bookkeeping error at Equitable’s home office and that he would take care of it. When, in subsequent years, they received similar premium notices which by then indicated that loans had been advanced against the policy value to pay the previous year’s premium, they had similar conversations with LeSuer and, according to their testimony, were given similar assurances.
In 1982 Buster and Bob Cartwright applied for an SBA loan to operate their agricultural products business. They were advised by their banker that they would need $150,000 of life insurance per person to guarantee repayment of the loan in the event that either of them died before it was repaid. After discussing the loan requirements with LeSuer, each of them agreed to purchase from him and Equitable a convertible term life insurance policy for the face amount of $150,000. Those policies were issued in June 1982. They are not the subject of plaintiffs’ claims, but were converted to whole life insurance policies in 1986 and 1988 which are the subject of the plaintiffs’ claims.
During 1982 Buster and Grace also purchased convertible term life insurance policies from LeSuer and Equitable insuring each of their lives for the face amount of $100,000 to assure payment of the debt which was secured by their farm. Neither are those policies the subject of the plaintiffs’ claims. However, they were also later converted to whole life policies which are the subject of their claims.
In 1983 LeSuer advised Buster that he could replace the retirement policy Buster had purchased in 1950 by converting it to a better policy with greater coverage. Grace also testified that they were told by LeSuer that only four or five premium payments would have to be made by them to purchase paid up coverage under the new 1993 policy. Buster testified that they were told that premiums would eventually be paid on the policy from accumulated dividends which the policy earned. Premium payments were made for that policy in 1983,1984, and 1985. When the fourth premium notice was received in 1986, there apparently was some confusion about how many premiums would be due. According to Buster, he contacted LeSuer and was advised that there had been a computer mixup, that he should not worry about it, and that LeSuer would take care of it. The next premium notice was received in 1987 and showed that a loan had been taken against the policy to pay the previous year’s premium. He recontacted LeSuer and, according to him, was given similar assurances during that and subsequent years.
In 1986 the premium for Buster’s $150,000 term life policy, and for Buster’s and Grace’s $100,000 term policies had increased substantially and so they discussed alternatives with LeSuer. He suggested that the three policies be converted to whole life policies. According to Buster and Grace, he told them that after three premium payments the policies would be self-sustaining and they would not have to make the future premium payments. Based on those representations, Buster purchased whole life policies for the face amount of $150,000 and $100,000 from Equitable in 1986. An additional whole policy in the face amount of $100,000 was issued by Equitable to Grace in 1986. The third page of Buster’s 1983 whole life policy indicated that premiums were due for thirty years. The third page of the whole life policies purchased by Buster and Grace in 1986 indicated that premiums were due for life. However, Grace testified that when the policies were delivered by LeSuer he did not bother to explain the terms, or suggest that they read them. She stated that he simply said to put them in a safe place and if they ever had a question that he would help them with it.
The Nesses paid premiums for the whole life policies they purchased in 1986 during 1986, 1987, and 1988. When they received premium notices in 1989, they testified that they contacted LeSuer and received the same assurances that they had received regarding their previous policies. They testified that they were told that there had been a mistake, that they should not worry about it, and that he would take care of it. Finally, when they received notices in February 1990 indicating that loans were being taken against their policies, they again tried to contact LeSuer but were advised that he had been terminated from employment with Equitable and were referred to Equitable’s office in Billings. There they talked to a gentleman by the name of Brad Schaffer who told them not to pay any more premiums until their questions could be resolved to their satisfaction. They learned for the first time in January or February 1990 during conversations with Shaffer that there was no such thing as an Equitable whole life policy which was self-supporting after three payments, and that they actually had problems with their policies other than bookkeeping errors.
Buster and Grace testified that LeSuer never discussed with them the option of taking loans against the face value of their policies to pay premiums after the third year and that they never authorized him to do so. Although the portion of one or more of their policy application forms entitled “automatic premium loan” was checked, they testified that they had not previously known that it was checked, nor did they ever authorize LeSuer to do so. Buster testified that his application forms were filled in by LeSuer and that he then signed them. Grace testified that she signed her application forms in blank and that they were later completed by LeSuer. During discovery, Equitable produced executed forms entitled “policy owner request for service” which had been submitted to Equitable for the purpose of authorizing a loan against the Nesses’ policies for payment of premiums after they stopped making premium payments. However, the request forms were executed by Blaine LeSuer. The Nesses testified that they neither executed any such forms nor authorized LeSuer to execute the forms on their behalf and that they were unaware that the requests for loans against their policies had ever even been made. Officials from Equitable acknowledged that agents could execute the forms without any written authorization from their insureds and that there would have been no way for the insureds to know about the request for a loan until the following year’s premium notice arrived. The same witnesses also testified that every time a loan was taken against the Nesses’ policies to pay a premium, LeSuer received a commission.
Because of their assumption that premiums were due for a limited time after which the policies would be self-sustaining from dividends and earnings, the Nesses stopped paying premiums for all five whole life policies so that by the time of trial the status of the policies purchased by the Nesses was as follows:
1. The whole life policy purchased by Buster to insure Grace’s life in the face amount of $25,000 in 1982 had loans against it in the amount of $4,391, which will be deducted from any life benefit payable pursuant to that policy.
2. Grace’s $100,000 whole life policy was cancelled.
3. Buster’s whole life policy, which was purchased in 1993 with a face value of $50,000, was cancelled.
4. Buster’s whole life policy purchased in 1986 with a face value of $150,000 had loans against it in the amount of $29,888.
5. Buster’s whole life policy purchased in 1986 with a face value of $100,000 was cancelled.
Robert Cartwright testified that as a requirement for a loan, he purchased the same term life insurance policy that Buster Ness had purchased from LeSuer and Equitable in 1982. After an unsuccessful effort to purchase his own whole life policy in 1986, he learned in 1988 that he had a right to convert his term life policy to a whole life policy. He contacted LeSuer about doing so and testified that he was told by LeSuer that he could purchase a policy which required only three payments. Based on that representation, he applied to convert his term policy in January 1988 to a variable life insurance policy. He testified that a week or two later LeSuer brought a policy to him which he rejected because it did not include language to the effect that it was a “three pay” policy. LeSuer then returned with a new document entitled “standard ledger statement whole life 50” which appears to set forth the annual net premium, net cash value, and net death benefit of a whole life policy for Robert Cartwright in the face amount of $150,000. However, on the top of the form LeSuer wrote “what I am changing you to.” Under the annual loan column he put “x three pay” and under the net death benefit column he entered another “x.” Cartwright testified that he accepted the document as his policy and placed it in his safe. He stated that no other document was given to him.
Cartwright testified that LeSuer did not discuss the terms of the policy with him, other than to state that only three premiums would have to be paid. When the third premium notice arrived in 1990, he contacted Buster Ness who advised him for the first time that there was no such thing as a “three pay” policy. Therefore, he did not make the third payment, and in the fall of 1990 was notified by Equitable that his policy had been terminated. At the present time, Cartwright is uninsurable because of his health.
Blaine LeSuer testified that when the Nesses received premium notices for years subsequent to those in which they paid their own premiums, they contacted him and requested that he arrange to pay premiums by taking loans against their policies. He denied that he checked any portions of the policy application forms without authorization from the Nesses or that he sent in service requests without being asked to do so. He agreed that when the Nesses received premium notices they would call him and ask him to “take care of it.” However, he testified that when he did take care of it by applying for loans with which to pay the premiums he was simply carrying out the terms which had been agreed to at the time the policies had been sold to the Nesses.
LeSuer testified that he had a similar agreement with Cartwright. However, he acknowledged that Cartwright rejected the first policy that was presented to him, and that in response to that rejection he presented the computer printout on which the handwritten notations previously described were made. He explained the notations by stating that Cartwright was concerned about having to make more than three payments. He testified that the “three pay” notation was Cartwright’s terminology and that he would have preferred to describe the policy as “self-supporting.”
In his testimony, LeSuer repeatedly referred to the policies which he sold to Cartwright and the Nesses as “self-supporting,” however, he explained that that meant that after three premium payments future premiums would be paid by a combination of dividends earned by the policy and loans against the policy which would be deducted from the death benefit.
The jury resolved the factual issues raised by the parties’ testimony in favor of the plaintiffs when it found that Blaine LeSuer as the agent, and Equitable as his principal, breached a fiduciary duty that they owed to the plaintiffs, made negligent misrepresentations to the plaintiffs, acted negligently, committed constructive fraud, and were guilty of actual fraud. In response to a special interrogatory, the jury also found that the conduct of both defendants satisfied the factual predicate for an award of punitive damages set forth at § 27-1-221, MCA, and that punitive damages should be awarded. In its verdicts, the jury returned actual and punitive damages in the amounts previously stated. Based on its statutorily required review, the District Court then affirmed the awards of punitive damages, but reduced them by the amounts previously discussed. Further facts, as necessary, will be set forth in the context of the issues raised by the parties.
ISSUE 1
Were the plaintiffs’ claims barred by the applicable statutes of limitations?
Buster and Grace Nesses’ original complaint was filed on October 28, 1991. The amended complaint, which included Robert Cartwright’s claim, was first filed on November 12, 1991. LeSuer and Equitable contend that they were entitled first to summary judgment, and then to a directed verdict dismissing all of the plaintiffs’ claims based on the applicable statutes of limitations.
They contend that the three-year statute of limitations found at § 27-2-204(1), MCA, applies to the plaintiffs’ claims for breach of fiduciary duty and negligence, and that the two-year statute of limitations found at § 27-2-203, MCA, applies to the claims for negligent misrepresentation and fraud. Their argument continues that the three-year statute of limitations began to run when the plaintiffs’ causes of action accrued, that that occurred when all elements of their claims existed, and that all elements of the plaintiffs’ claims existed when their policies were delivered in 1982, 1983, 1986, and in Cartwright’s case, March 1988. They contend that the two-year statute of limitations for fraud begins to run two years from the date on which the fraud is alleged to have occurred unless by the nature of the conduct complained of, it could not have been discovered until later. However, they contend that in this case plaintiffs are charged as a matter of law with notice of any fraud perpetrated by LeSuer from the dates on which their policies were delivered, and no later than the dates on which they received a notice that premiums were due in addition to those they had been led to believe they would have to pay.
The District Court agreed that plaintiffs were damaged, and therefore, that their tort causes of action accrued when they received policies which were not what they had been led to believe they would receive. The District Court also held that plaintiffs had an obligation to read their insurance contracts and that if they had done so they would have discovered the misrepresentations they alleged had been made, and therefore, that the statute of limitations for fraud also began to run on the dates on which the policies were delivered. Based on just that part of the District Court’s analysis, the statutes of limitations for all claims by all plaintiffs would have expired prior to the dates on which their complaints were filed. However, the District Court went on to conclude that when the Nesses were told by LeSuer' not to worry about the premium notices they received, the statute of limitations pertaining to fraud was tolled by fraudulent concealment. The District Court held that the statute pertaining to the plaintiffs’ other tort causes of action was tolled by the doctrine of continuing relationship set forth by this Court in Northern Montana Hospital v. Knight (1991), 248 Mont. 310, 316, 811 P.2d 1276, 1279.
The District Court concluded that Cartwright’s tort claims did not accrue in 1988 and that he was not put on notice of facts constituting LeSuer’s misrepresentation because no policy had in fact ever been delivered to him. Instead, the court concluded that Cartwright received, at most, an ambiguous document which included computer generated information cancelled by Cartwright’s handwritten notations. For these reasons, the District Court denied Equitable’s motion for summary judgment and the defendants’ motions for a directed verdict. We will affirm the result of the District Court’s decision, if correct, even though arrived at for the wrong reasons. Norman v. City of Whitefish (1993), 258 Mont. 26, 30, 852 P.2d 533, 535.
We conclude for the reasons that follow that the plaintiffs’ complaint alleging fraud was filed on time. Since that claim was a sufficient basis for the jury’s verdict, we will not address the District Court’s conclusion or the issues raised by the defendants regarding the statute of limitations that applied to the plaintiffs’ other tort claims.
Section 27-2-203, MCA, provides that:
The period prescribed for the commencement of an action for relief on the ground of fraud or mistake is within 2 years, the cause of action in such case not to be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake.
Section 27-2-102, MCA, provides in relevant part that:
(3) The period of limitation does not begin on any claim or cause of action for an injury to person or property until the facts constituting the claim have been discovered or, in the exercise of due diligence, should have been discovered by the injured party if:
(a) the facts constituting the claim are by their nature concealed or self-concealing; or
(b) before, during, or after the act causing the injury, the defendant has taken action which prevents the injured party from discovering the injury or its cause.
Reading these statutes in combination we conclude that the statute of limitations for an action based on fraud begins when the fraud occurs unless the facts which form the basis for the allegation are, by their nature, concealed. We also conclude that even after acts which form the basis for an allegation of fraud are discovered, the statute may be tolled if the defendant takes affirmative action to prevent the injured party from discovering that he or she has been injured.
In Holman v. Hansen (1989), 237 Mont. 198, 203, 773 P.2d 1200, 1203, we held that “[u]nder § 27-2-203, MCA, whether there has been a ‘discovery’ of facts sufficient to start the running of the statute of limitations is a question of law.” Without directly saying so, we impliedly held that the related question of whether there has been fraudulent concealment which would toll the statute of limitations is also a question of law. Neither party challenges this analysis on appeal. The defendants contend that as a matter of law plaintiffs’ claims are barred by the applicable statutes of limitations. Plaintiffs contend that as a matter of law their complaints were filed within the allowable time. The District Court agreed. We review a District Court’s conclusions of law to determine whether they are correct. Carbon County v. Union Reserve Oil Co. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.
The issue, then, stated another way, is when did the plaintiffs, or when should the plaintiffs have discovered that their policy was not “self-sustaining” as represented, and was there fraudulent concealment by the defendant which prevented them from discovering that fact during the normal course of events.
Citing Holman, defendants contend that failure to discover an alleged act of fraud will not necessarily postpone the statute of limitations. In that case we held that:
The party asserting fraud is put on inquiry notice of the other party’s misdeeds, and must exercise ordinary diligence to discover the facts constituting the fraud. Yellowstone Conference of United Methodist Church v. D.A. Davidson (1987), [228 Mont. 288,] 741 P.2d 794; Gregory v. City of Forsyth (1980), 187 Mont. 132, 609 P.2d 248. Mere ignorance of the facts will not suffice to toll the statute of limitations.
“He must show that the acts of fraud were committed under such circumstances that he would not be presumed to have knowledge of them, it being the rule that if he has ‘notice or information of circumstances which would put him on inquiry which if followed would lead to knowledge, or that the facts were presumptively within his knowledge, he will be deemed to have actual knowledge of the facts.’ ”
Mobley v. Hall (1983), 202 Mont. 227, 232, 657 P.2d 604, 607 (quoting Kerrigan v. O’Meara (1924), 71 Mont. 1, 8, 227 P. 819, 822).
Holman, 237 Mont. at 202, 773 P.2d at 1203.
Defendants contend that plaintiffs were on notice of LeSuer’s alleged misrepresentations because of language in the policies that were delivered to the Nesses and the computer printout which was provided to Cartwright. The specific language they rely on indicates that premiums were due for life or for periods of time substantially in excess of three years. They also contend that the Nesses were put on notice by the annual statements they received from Equitable indicating that premiums were due in addition to those that they assumed were due and that loans were being charged against their policies to pay for previous premiums which they had not paid.
We disagree with the defendants’ argument and the District Court’s conclusion that policy language should have placed the plaintiffs on notice that LeSuer’s alleged representations were incorrect. The only notice given to the plaintiffs by either their policies or the computer printout provided to Cartwright was that premiums would be due for twenty years, thirty years, or a lifetime. However, to suggest that that information contradicted LeSuer’s alleged misrepresentations misconstrues the plaintiffs’ contentions which the jury found to be true. There was no allegation by the plaintiffs that LeSuer ever told them that future premiums would not be due. The dispute was over how those premiums would be paid. Plaintiffs contended that LeSuer assured them that after their first three payments (four or five payments for the 1982 and 1983 policies) the policies would earn sufficient dividends and income to pay future premiums. LeSuer contended that he told them that after three payments future premiums could be paid by a combination of dividends and loans taken against the policy. The jury resolved that conflict in the testimony in favor of the plaintiffs.
If, as the jury found, LeSuer represented to the plaintiffs that dividends and other earnings from the policy would be sufficient to pay premiums after three years (or four or five years), we conclude that there was nothing in the policy language to suggest otherwise. In fact, page three of each policy, upon which defendants principally rely, specifically states that the tables listed “do not reflect dividend credits or loans.” Page five provides the following information regarding dividends:
We will determine your policy’s share, if any, of our divisible surplus annually. It will be payable as a dividend at the end of each policy year if the policy is then in effect with all premiums duly paid. We do not expect any dividend to be paid on your policy before the end of the second policy year.
DIVIDEND OPTIONS. You may choose one of these options:
• CASH: Your dividends will be paid directly to you.
• PREMIUMS: Your dividends will be used to help pay any premium then due.
(Emphasis added.) There was nothing in the policy which would have indicated to the Nesses, had they read it, that dividends would not be sufficient to pay premiums after the third, fourth, or fifth year of the policy’s existence.
Therefore, we conclude that the misrepresentations which the jury found that LeSuer has made were made under such circumstances that the plaintiffs would not have known they were false, nor were they aware of facts from the language in their policy which should have put them on notice that the representations were false. Furthermore, we conclude that the first fact which should have suggested to the Nesses that LeSuer had misrepresented the terms of their policies was the notice that they received indicating premiums due beyond those they had been led to believe would be due, but that following receipt of those notices, the period of limitations was tolled annually by LeSuer’s fraudulent concealment when he made statements to them which were planned to prevent inquiry or the acquisition of information which would have disclosed his misrepresentations to them.
Fraudulent concealment consists of “the employment of artifice, planned to prevent inquiry or escape investigation, and mislead or hinder acquisition of information disclosing a cause of action.” E.W. [v. D.C.H., 231 Mont. 481], 754 P.2d at 821 (quoting Monroe v. Harper, 164 Mont. 23, 28, 518 P.2d 788, 790 (1974)). To invoke this doctrine, plaintiffs must show “affirmative conduct by the defendant calculated to obscure the existence of the cause of action.” Holman, 773 P.2d at 1203 (citing Yellowstone Conference of United Methodist Church v. D.A. Davidson, Inc., 228 Mont. 288, [294], 741 P.2d 794, 798 (1987)).
Shupak v. New York Life Ins. Co. (D. Mont. 1991), 780 F. Supp. 1328, 1335.
Citing Falls Sand and Gravel Co. v. Western Concrete Co., Inc. (D. Mont. 1967), 270 F. Supp. 495, Holman, 237 Mont. 198, 773 P.2d 1200, Carlson v. Ray Geophysical Division (1971), 156 Mont. 450, 481 P.2d 327, defendants contend that fraudulent concealment, as a matter of law, cannot consist of merely reaffirming an original misrepresentation. However, the facts in the cases relied on by the defendants are distinguishable from the facts in this case. In all three cases relied on by the defendants, the plaintiffs had discovered the facts which gave rise to their claims for fraud but were assured by the defendants that the defects or inadequate performance complained of would be cured. Under those circumstances, this Court, and the Federal District Court, held that those plaintiffs elected to rely on informal resolution of their claims and that fraudulent concealment did not occur. In this case, LeSuer was not accused of acknowledging defects in the policy that he sold to the plaintiffs and then representing that the defects would be cured. He was accused of denying that any problem existed with the plaintiffs’ policies for the purpose of discouraging the plaintiffs from making further inquiry. That brings his alleged conduct squarely within our prior description of fraudulent concealment.
Since neither the Nesses nor Cartwright were aware of facts which would have led them to discover LeSuer’s alleged misrepresentations based on policy language, and since LeSuer fraudulently concealed the true significance of the premium notices that the Nesses received, the plaintiffs’ first actual knowledge that the terms of their policies had been misrepresented was acquired in 1990. We therefore conclude that the complaint and amended complaint filed in 1991 were within the two-year period of limitation provided at § 27-2-203, MCA, and were, therefore, timely.
ISSUE 2
Did the District Court abuse its discretion when it admitted evidence that LeSuer had similarly misrepresented the terms of policies to other individuals? If not, did the District Court err by precluding further evidence of the specific manner in which those person’s claims against Equitable were resolved?
During the course of their investigation and pretrial discovery, the plaintiffs learned that complaints about LeSuer’s sales practices had been made by twenty-seven others to the Montana Insurance Commissioner. Complaints had also been made to Equitable’s home office in New York and its regional office in Fresno, California. Since LeSuer testified during discovery that he would not have applied for loans against a customer’s policy without their authorization, the plaintiffs offered testimony from four other customers to prove that he had done so as a routine practice.
Audrey Kaercher, Lyle Richards, Richard Berger, and Elsie Mills all testified that they owned life insurance policies issued by Equitable when they were approached by LeSuer in the 1980s with the suggestion that they use the cash value of their existing policies to purchase newer and better policies. They all testified that LeSuer represented to them that by a combination of the value in their existing policy and a minimal number of premiums they could obtain greater coverage from a policy which would be self-supporting in a short period of time. They also testified that at the point in time when they expected their new policy to be self-supporting they continued receiving premium notices indicating that loans were being taken against their policy to pay the additional premiums, but that LeSuer had never discussed loans with them and that they had never authorized him or Equitable to loan them money for the payment of premiums. All four people testified that when they were notified of the situation, they contacted LeSuer who told them not to worry about it and that he would take care of it.
Lyle Richards and Elsie Mills testified that when they tried to contact Equitable’s telephone number listed on their annual premium notice, the only person either of them was ever able to reach was the janitor.
The defendants objected to testimony from these four witnesses on the grounds that it was irrelevant and inadmissible pursuant to Rules 401 and 402, M.R.Evid.; it was prejudicial pursuant to Rule 403; and their complaints lacked sufficient similarity to qualify pursuant to Rule 404(b) and the standards established in State v. Matt (1991), 249 Mont. 136, 814 P.2d 52, for admission of evidence of other acts. The District Court, however, admitted the testimony of these four witnesses pursuant to Rules 404(b) and 406, M.R.Evid.
We review a district court’s evidentiary rulings to determine whether there has been an abuse of discretion. In re $23,691.00 (1995), [273 Mont. 474], 905 P.2d 148, 152 (citing State v. Passama (1993), 261 Mont. 338, 341, 863 P.2d 378, 380). The district court has broad discretion to determine if evidence is admissible. Accordingly, absent an abuse of discretion this Court will not overturn the district court’s determination. In re $23,691.00, [273 Mont. 474], 905 P.2d at 152.
Relevant evidence means evidence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence. Relevant evidence may include evidence bearing upon the credibility of a witness or hearsay declarant.
Rule 401, M.R.Evid. (emphasis added).
All relevant evidence is admissible, except as otherwise provided by constitution, statute, these rules, or other rules applicable in the courts of this state.
Rule 402, M.R.Evid.
Buster Ness, Grace Ness, and Robert Cartwright testified that they were told by LeSuer that they could purchase whole life insurance policies from Equitable which would be supporting after payment of a few annual premiums. They testified that loans against the policy which had the effect of reducing the policy’s death benefit had never been suggested by LeSuer and were not part of the bargain. Buster and Grace also testified that when they did receive notice that loans were being taken against the policies, LeSuer told them there had been a bookkeeping or computer programming mistake, that they should not worry about it, and that he would take care of it.
LeSuer testified that he explained to all three plaintiffs that they could purchase policies from Equitable for which they would have to pay cash premiums for only three years because after that period of time premiums could be paid by a combination of dividends, policy earnings, and loans against the policy. He testified that he never requested loans against policies without the plaintiffs’ authorizations, and that when they called him to request that he deal with additional premium notices, they were actually calling him to request that he secure the loans necessary to pay their additional premiums.
LeSuer, who testified by video deposition, had no specific recollection of exact conversations with Buster and Grace Ness. However, attorneys for the defendants refreshed his recollection regarding his conversations with them based on documents in the company’s possession.
After being shown premium notices issued to Grace Ness which showed loans taken against her policy, LeSuer testified, based on that notice, that Grace had called him and said she did not have the money for the premium and asked him to have it paid by authorizing a loan against her policy.
When shown a customer service form authorizing payment of a premium loan which had been filled out by him, LeSuer testified that Buster or Grace must have requested a loan or he would not have filled out the form. Based on LeSuer’s testimony, which assumed facts because of documents that were in existence, the plaintiffs were entitled to show that similar customer service forms or notices of loan payments to pay premiums which existed among the records of other customers did not automatically establish approval by that customer for loans against their policies.
If similar notices were sent to other customers and similar customer service forms were filled out on behalf of other customers without any request by them that LeSuer do so, those facts made LeSuer’s reconstruction of events, based on the documents pertaining to the Nesses’ policies, less credible. Therefore, we conclude that the testimony of Kaercher, Richards, Berger, and Mills was relevant and admissible, absent some other basis in the Rules of Evidence for excluding it.
The defendants contend that pursuant to Rule 404(b), M.R.Evid., the evidence of prior acts and representations by LeSuer was inadmissible character evidence. Rule 404(b) provides as follows:
Evidence of other crimes, wrongs, or acts is not admissible to prove the character of a person in order to show action in conformity therewith. It may, however, be admissible for other purposes, such as proof of motive, opportunity, intent, preparation, plan, knowledge, identity, or absence or mistake or accident.
We have not previously applied or discussed Rule 404(b) in the context of a civil action, however, because defendants’ contention is not that the Rule should not have been applied, but rather that it was misapplied, its applicability is not before us. We have stated in the context of criminal law that certain criteria must be considered before prior bad acts can be admitted without offending Rule 404(b). In State v. Matt (1991), 249 Mont. 136, 142, 814 P.2d 52, 56, we held that: (1) the other acts must be similar; (2) the other acts must not be remote in time; (3) the other acts may be admitted for one of the permissible purposes provided in Rule 404(b); and (4) the probative value of the other act must not be outweighed by the danger of unfair prejudice.
LeSuer contends that the first of the four criteria set forth above is not satisfied in this case because the nature of LeSuer’s alleged representations to these four witnesses was different than his alleged representations to the plaintiffs. He distinguishes the representations to the other four witnesses on the basis that they had existing policies which were being used to partially fund premiums for new policies. However, we conclude that the distinction is insignificant.
The basic conduct which the testimony was offered to prove is the same. All four witnesses claimed that they were told they could purchase a better policy for a minimal number of premiums, that the policies would become self-supporting, and that after a few years they would owe no further premiums from their own personal funds. When instead they received notices of additional premiums which were being paid by loans against the policies, they contacted LeSuer who told them that the notices were a mistake, they should be ignored, and that he would take care of the problem. All of the witnesses testified that loans to pay premiums were never explained to them or discussed with them and that they had not given authorization to LeSuer to apply for loans against their policies. In all significant respects, the misrepresentations they described and the pattern of conduct they complained of were identical to those misrepresentations and the pattern of conduct complained of by the plaintiffs. Therefore, we conclude that the acts to which the four witnesses testified were sufficiently similar to those which were the subject of the plaintiffs’ complaint. We furthermore conclude that the acts about which these four witnesses complained occurred during the approximate time of the acts complained of by the plaintiffs; they were probative of LeSuer’s plan to earn commissions by selling policies to customers which they would have known they could not afford had the policies been honestly explained to them, and farther probative of the fact that the problems complained of by the plaintiffs were not the result of a mistake or miscommunication on LeSuer’s part. Finally, we conclude that the probative value of the offered evidence substantially outweighed the danger of unfair prejudice, and therefore, that the evidence was admissible pursuant to Rule 404(b), M.R.Evid.
After the testimony of these four witnesses was admitted, the District Court allowed defendants’ counsel to ask on cross-examination whether their complaints about the way in which LeSuer handled their policies had been satisfactorily resolved. They all answered that their claims had been resolved. However, defendants were not allowed to further explore the specific details of each resolution. The District Court limited cross-examination to that extent for the stated purpose of avoiding other trials within the trial of this case.
On appeal, LeSuer complains that the jury was left with incomplete information and that in fairness, he should have been allowed to explore completely the manner in which each of the four claims was resolved. We conclude, however, that the manner in which each of the four claims was resolved is irrelevant. The plaintiffs were entitled to corroborate their own testimony and impeach LeSuer’s testimony by establishing LeSuer’s pattern of conduct. The defendants were entitled to show that when LeSuer’s conduct was brought to Equitable’s attention, it took measures to cure the problems that he created. However, the particular manner in which the problems were resolved had no bearing on any issue in this case. Therefore, we conclude that the District Court did not abuse its discretion by limiting the cross-examination of these four witnesses in the manner described.
ISSUE 3
Was the jury’s finding that the defendants committed fraud supported by substantial evidence?
Defendant LeSuer argues on appeal that there was insufficient evidence to sustain the jury’s verdict that the defendants defrauded the plaintiffs.
We review a jury’s factual findings to determine whether there is substantial evidence in the record to support those findings. Hogan v. Flathead Health Ctr., Inc. (1992), 255 Mont. 388, 390, 842 P.2d 335, 337. As we stated in Cechovic v. Hardin & Associates (1995), 273 Mont. 104, _, 902 P.2d 520, 525:
This Court’s role is not to agree or disagree with a jury’s verdict. Once we conclude that substantial evidence supports the verdict, our inquiry is complete. Substantial evidence has been defined as evidence a reasonable mind might accept as true and can be based on weak and conflicting evidence. When we determine whether substantial evidence supports the jury’s verdict, we review the evidence in a light most favorable to the party who prevailed at trial. If the evidence at the trial conflicts, the jury’s role is to determine the weight and credibility of the evidence.
(Citations omitted.)
We have previously held that in a civil action for fraud it is necessary to establish the following nine elements:
The nine elements of fraud are:
1. A representation;
2. Falsity of the representation;
3. Materiality of the representation;
4. The speaker’s knowledge of the falsity of the representation or ignorance of its truth;
5. The speaker’s intent that the representation shall be relied upon;
6. The hearer’s ignorance of the falsity of the representation;
7. The hearer’s reliance on the representation;
8. The hearer’s right to rely upon the representation;
9. Consequent and proximate injury caused by the reliance on the representation.
Northwest Truck & Trailer Sales v. Dvorak (1994), 269 Mont. 150, 154, 887 P.2d 260, 262 (quoting Wiberg v. 17 Bar, Inc. (1990), 241 Mont. 490, 496, 788 P.2d 292, 295).
The jury was properly instructed on the elements that plaintiffs had to prove to establish fraud. LeSuer does not claim otherwise. What he does contend is that because of the policies which were provided to the plaintiffs, and the language in those policies which indicated the number of premiums which were due, plaintiffs were not justified in relying on LeSuer’s alleged misrepresentations that the policies would be self-supporting after three, four, or five premium payments. However, for the reasons stated in our discussion of Issue 1, we repeat that the dispute in this case was not about the number of premiums due for the policies sold by LeSuer, or about the length of time over which premiums would have to be paid. The dispute was whether LeSuer represented that premiums after the first few would be paid by dividends and policy earnings, or whether he advised plaintiffs that in fact future premiums would have to be paid by them personally or paid by loans taken against the policy. As we have previously noted, there was nothing in the policy language which would have informed the plaintiffs one way or the other. Therefore, there was nothing about the policy language which would have precluded plaintiffs as a matter of law from relying on LeSuer’s representations.
For these reasons, and based on the testimony of Buster Ness, Grace Ness, and Robert Cartwright, we conclude that there was substantial evidence in support of each of the elements of a civil claim for fraud. We therefore affirm the jury’s verdict that the defendants committed fraud.
ISSUE 4
Was the jury’s award of actual damages supported by substantial evidence?
Defendant LeSuer contends that there was insufficient evidence to sustain the jury’s verdict that the plaintiffs incurred actual damage as a result of LeSuer’s alleged misrepresentations. We review a jury’s damage award as we do its determination of liability, to determine whether it is supported by substantial evidence. Lee v. Kane (1995), 270 Mont. 505, 510, 893 P.2d 854, 857.
LeSuer contends that because neither Cartwright nor the Nesses could afford to continue making premium payments on the term policies that they purchased in 1982, that their options were very limited and that the only thing they have lost based on any misrepresentation made by him are the premium payments that they made toward the whole life policies to which their term policies were converted.
Our review of the record establishes that the jury’s compensatory damage awards were based on the testimony of Darby Minnick. Mr. Minnick is a life insurance agent with Northwestern Mutual Life in Bozeman and has been in the business for fifteen years. He expressed the opinion after reviewing the plaintiffs’ policies that they had suffered economic loss based on their purchases from Equitable and gave the following opinions regarding the extent of damages that the plaintiffs’ sustained.
Minnick expressed the opinion that Cartwright’s damages were based upon his agreement to purchase whole life coverage with a face value of $ 150,000 for three premium payments and the fact that after making two premium payments he discovered that he had not received what he had purchased, stopped making payments, and his policy was terminated. He testified that not only is Cartwright now without his term life coverage, but he has no whole life policy and he is uninsurable due to his health and age. After deducting the premium payments that Cartwright agreed to pay from the amount of coverage Equitable agreed to provide, he calculated that Cartwright’s damage is $144,025. That was the amount awarded by the jury.
He testified that Grace Ness purchased coverage in the face amount of $25,000 in 1982 and that as of April 13, 1994, the policy should have provided coverage worth $27,114, but that loans against that policy reduced her death benefit to $22,723. He stated that her damage related to the 1982 policy, therefore, was $4,391. He also testified that had loans not been taken against that policy, there would currently be sufficient dividends accumulated to pay premiums from this point forward.
Minnick also testified that the $100,000 whole life policy which Grace purchased in 1986 was terminated on November 18,1994, due to failure to pay the premium and that the cost of buying that much coverage for a person of her age and paying premiums until the policy was self-supporting, based on a given rate of return, was $40,384. The jury returned a verdict of compensatory damage to Grace Ness in the amount of $44,738.
Minnick testified that at the time of trial, loans in the amount of $29,888 had been taken against Buster’s $150,000 whole life policy and that to purchase a policy which would provide the coverage which had been represented to him at the price he had been told he would have to pay, those loans would have to be paid back and an additional $10,632 worth of premium payments would have to be made. To replace the $50,000 policy which he purchased in 1983 but which has been terminated or cancelled for failure to pay premiums, and to provide for the extent of coverage represented without the necessity for payment of future premiums, would cost $34,313. He added that to replace Buster’s $100,000 whole life policy purchased in 1986 with a policy that would provide the amount of coverage represented at the cost represented, would cost between $57,166 and $81,848, de pending on the rate of return that the policy earned. The jury returned a verdict for Buster in the amount of $144,025.
We conclude that based on the testimony of Darby Minnick, there was substantial evidence to support the jury’s compensatory damage award.
ISSUE 5
Did the District Court abuse its discretion when it refused to instruct the jury that plaintiffs could not recover for fraud in light of their failure to examine the insurance policies they purchased?
Defendant LeSuer’s proposed Instruction No. 17 was as follows: “A person who fails to take the opportunity to examine a written form before executing it cannot claim fraud.” That instruction was rejected by the District Court.
LeSuer claims that his proposed instruction was supported by the evidence because the plaintiffs claimed that they signed applications for insurance which were later filled in by LeSuer and that the instruction is justified by our decision in Montana Bank v. Lightfield (1989), 237 Mont. 41, 771 P.2d 571.
We have held that a district court has discretion regarding the instructions it gives or refuses to give to a jury and that we will not reverse a district court on the basis of its instructions absent an abuse of discretion. Cechovic v. Hardin & Assoc. (1995), 273 Mont. 104, _, 902 P.2d 520, 527. When we examine whether jury instructions were properly given or refused, we consider the instructions in their entirety, as well as in connection with the other instructions given and the evidence at trial. Story v. City of Bozeman (1993), 259 Mont. 207, 222, 856 P.2d 202, 211. While LeSuer’s proposed Instruction No. 17 accurately paraphrased a portion of our discussion in Montana Bank, the instruction was incomplete and taken out of context. The entire paragraph from which the instruction was drafted is as follows:
Typically, a person who fails to take the opportunity to examine a written form before executing it cannot claim fraud. Jenkins v. Hillard (1982), 199 Mont. 1, 6, 647 P.2d 354, 357; Hjermstad v. Barkuloo (1954), 128 Mont. 88, 98, 270 P.2d 1112, 1117. As noted by the Bank, however, a person may claim fraud to a document he signs “where he is prevented from reading it or having it read to him by some fraud, trick, artifice, or devise by the other party.” 17 Am. Jur. 2d Contracts § 152 (1964).
Montana Bank, 237 Mont. at 47-48, 771 P.2d at 576.
In this case, Buster and Grace Ness testified that they were asked to sign application forms for insurance at a time when the forms did not include representations or requests which appeared on the forms as they were submitted to Equitable. The inference was that the information was added by LeSuer after the documents were executed by the Nesses. Based on the testimony given, the instruction proposed by LeSuer was an incomplete statement of the law and would have been misleading. If the jury was going to be instructed on the plaintiffs’ obligation to examine the documents they signed, the jury should also have been instructed that the obligation did not apply where, because of artifice on the part of the other party, they did not have an opportunity to observe the objectionable part of the document. For these reasons, we conclude that the District Court did not abuse its discretion, and therefore, did not err when it refused LeSuer’s proposed Instruction No. 17.
ISSUE 6
Was there substantial evidence to support an award of punitive damages against each defendant?
Section 27-1-220, MCA, provides that punitive damages, in addition to compensatory damages, may be awarded by a judge or jury for the sake of punishing a defendant. Section 27-1-221, MCA, limits awards of punitive damages to those situations in which a defendant has been found guilty of actual fraud or actual malice. The same statute defines actual malice as follows:
(2) A defendant is guilty of actual malice if he has knowledge of facts or intentionally disregards facts that create a high probability of injury to the plaintiff and:
(a) deliberately proceeds to act in conscious or intentional disregard of the high probability of injury to the plaintiff; or
(b) deliberately proceeds to act with indifference to the high probability of injury to the plaintiff.
Section 27-1-221, MCA.
Section 27-1-221, MCA, defines the type of fraud which will support an award of punitive damages as follows:
(3) A defendant is guilty of actual fraud if he:
(a) makes a representation with knowledge of its falsity; or
(b) conceals a material fact with the purpose of depriving the plaintiff of property or legal rights or otherwise causing injury.
(4) Actual fraud exists only when the plaintiff has a right to rely upon the representation of the defendant and suffers injury as a result of that reliance.
Subparagraph (5) of § 27-1-221, MCA, provides that all elements of a claim for punitive damages must be proven by clear and convincing evidence and defines clear and convincing evidence as “more than a preponderance of evidence but less than beyond a reasonable doubt.”
As stated previously, we review a jury’s findings in civil cases to determine whether there was substantial evidence to support those findings. Hogan, 255 Mont. at 390, 842 P.2d at 337. That standard of review, however, is normally applied to the situation where the burden of proof is satisfied by a preponderance of the evidence. In criminal cases, where guilt must be proven beyond a reasonable doubt, our standard of review is specific to that burden. See State v. Gould (1995), 273 Mont. 207, _, 902 P.2d 532, 541. We have not previously analyzed whether actions which must be proven by clear and convincing evidence should be reviewed by something more than substantial credible evidence. However, we have upheld jury verdicts which awarded punitive damages where those verdicts were supported by substantial evidence. King v. Zimmerman (1994), 266 Mont. 54, 64, 878 P.2d 895, 901-02; Dees v. American Nat’l Fire Ins. Co. (1993), 260 Mont. 431, 444, 861 P.2d 141, 149. Furthermore, when we have reviewed district court decisions to terminate parental rights, which must also be based on clear and convincing evidence, we have also applied the substantial evidence standard of review. See, e.g., In re S.C. (1994), 264 Mont. 24, 28, 869 P.2d 266, 268; In re F.M. (1991), 248 Mont. 358, 363, 811 P.2d 1263, 1266. We therefore review the jury’s verdict in this case to determine whether there was substantial evidence to support its determination that plaintiffs were entitled to recover punitive damages.
The jury was instructed on the law of punitive damages and neither defendant objects on appeal to the maimer in which the jury was instructed on that subject. Based on those instructions, the jury responded in the affirmative when asked by special interrogatory whether punitive damages should be awarded against each defendant. However, both defendants contend on appeal, for different reasons, that there was insufficient evidence to support that part of the jury’s verdict.
LeSuer contends that because the District Court should not have admitted evidence of complaints by people other than the plaintiffs, the only evidence offered in support of the plaintiffs’ claim for punitive damages was their own testimony; and that since there were inconsistencies in the plaintiffs’ testimony, substantial doubt was raised about their credibility, and therefore, the evidence against LeSuer was not clear and convincing. Based on our review of the record, we disagree.
LeSuer, himself, corroborated the plaintiffs’ testimony in many particulars. He agreed that he told them they would only have to pay three premiums from their personal funds for whole life insurance policies. He agreed that he described the policies to them as “self-supporting.” He agreed that when they called him to advise him of the premium notices they had received, he told them he would take care of the problem. LeSuer’s testimony differs from the plaintiffs only because he testified that to him “self-supporting” meant that future premiums would be paid by a combination of dividends, policy earnings, and loans against the policy, and in the further respect that when he told them he would take care of the premiums the understanding was that he would take care of them by obtaining loans from Equitable.
Furthermore, as discussed previously in this opinion, the plaintiffs’ testimony, although substantial evidence, does not stand alone. Four other individuals testified that when LeSuer sold policies to them which he described as “self-supporting” he did not discuss loans to pay future premiums and did not obtain their authorization to borrow money against their policies. These same people testified that when they complained of premium notices which they had not expected to pay, LeSuer clearly conveyed to them that the premium notices were the result of a clerical error.
Lyn Gunning sold life insurance for Equitable in Great Falls from 1969 until 1976. He worked for the same company in Billings until 1978, and has been the office manager for Equitable’s Denver agency since 1986. When he took over the Denver agency in 1986 it was responsible for the entire state of Colorado. However, in 1990, that same agency assumed responsibility for the states of Wyoming and Montana as well. At that time, he began reviewing complaints that LeSuer had sold life insurance policies by misrepresenting the actual cost of those policies to his customers. In the course of his investigation of those complaints, he prepared a number of memos setting forth his findings. In a note dated February 24,1992, related to a complaint by Janet Breedan, he referred to Don Blumer (LeSuer’s former supervisor), Joe Wanago (another Great Falls salesperson), and Blaine LeSuer by stating, “they are all part of that mess up in Montana.” He explained that the mess he referred to was a series of complaints involving LeSuer.
In a July 26, 1990, memo regarding the complaint filed by Lloyd Kaercher, after Gunning had been involved in a high number of complaints about LeSuer for several months he stated, “attached is correspondence relating to another policy holder being raped by Blaine LeSuer.”
Gunning testified that during the course of his investigations of LeSuer he developed no evidence which would refute any of the complaints that he had received about LeSuer. Neither did he have any evidence to suggest that there was any basis for refuting the claims made by Cartwright and the Nesses. He testified that after reviewing complaints against LeSuer he concluded that it was LeSuer’s common practice to take unauthorized loans against policy holders policies, and when they were notified to tell them not to worry about it because he would take care of it. It was his opinion that LeSuer had engaged in a regular practice of destroying the value of people’s life insurance in order to sell them more life insurance.
We conclude that the evidence that LeSuer engaged in fraudulent and malicious conduct within the meaning of § 27-1-221, MCA, was supported by substantial credible evidence and that the evidence was clear and convincing. The jury’s verdict to that effect is affirmed.
Equitable challenges the jury’s finding that it is liable for punitive damages on a different basis. It contends that the undisputed evidence was that LeSuer was a rogue agent who broke the company’s rules by acting dishonestly, and that as a matter of law, based on the proof in this case, it is not vicariously liable for punitive damages based on his conduct.
Equitable argues that the circumstances which will support an award of punitive damages against a principle are set forth in Restatement (Second) of Torts § 909, and that those circumstances were not proven in this case. Section 909 provides as follows:
Punitive damages can properly be awarded against a master or other principle because of an act by an agent if, but only if,
(a) The principle or a managerial agent authorized the doing and the manner of the act, or
(b) The agent was unfit and the principle or a managerial agent was reckless in employing or retaining him, or
(c) The agent was employed in a managerial capacity and was acting in the scope of employment, or
(d) The principle qr a managerial agent of the principle ratified or approved the act.
Restatement (Second) of Torts § 909 (1979).
With the exception of a minor change to subparagraph (d), which in fact increased the burden on the plaintiff, the jury was instructed that § 909 is the law in Montana. Neither party objected to this instruction. Therefore, while we express no opinion that § 909 does or does not state the law in Montana regarding the liability of a principle for punitive damages based on the acts of an agent, we will review the evidence as it relates to the law as it was given to the jury.
Equitable’s administrative structure consisted of a home office in New York, four regional offices at various locations in the country, and agency offices covering smaller geographical areas which included various districts. When LeSuer began selling insurance for Equitable, he worked for an agency office located in Billings, but his district office was located in Great Falls.
Joseph Wanago testified that he is a retired insurance broker who sold policies for Equitable from 1961 to 1987. He was the district manager in Great Falls from 1962 until about 1975. He testified that he resigned the managerial position in 1975 after he complained to the new office manager about the exploitation of customers and was told to mind his own business.
He testified that he recalled LeSuer’s customers calling the Great Falls office to inquire about why they had loans taken against their policies. He testified that when he advised them they must have authorized it, they disagreed with him. He recalled referring five to ten such people to Equitable’s regional office in Fresno to resolve their problems.
Wanago explained that when he first became alerted to the fact that LeSuer was misleading customers about the nature of coverage they were purchasing and then borrowing money against their policies without their authorization, he reported the fact to Don Blumer, the new district manager, who told him to mind his own business. Eventually he reported the problem to Bud Partridge, the agency manager in Billings, who responded by getting mad at him, telling him it was none of his business, and explaining that the theory by which they operated was “buyer beware.” He described LeSuer’s sales practices and Blumer’s tacit approval of those practices as “wrong and unethical.”
He explained that LeSuer and other agents were telling people they could buy life insurance for nothing when what they were actually doing was tapping an existing policy which eventually became worthless, or borrowing money against the new policy which diminished the value of that policy, and that in the process agents like LeSuer made huge commissions.
Wanago testified that in addition to the customers who he personally referred to the regional office in Fresno, he also personally made complaints to regional officials and to two different presidents of the company.
Carol Ann Matthew testified that beginning in 1975 she worked for Equitable’s customer relations department in New York where she corresponded with customers about their complaints. She also served on a sales resolution committee which investigated and handled complaints. She first received complaints about LeSuer which were similar to the complaints in this case in 1984, handled additional complaints in 1985 and 1986, and a final complaint in 1990. However, she testified that no disciplinary action was taken against LeSuer as a result of any of these complaints.
Ken Tarrant testified that he became the staff manager at the Fresno regional office for Equitable in 1990. Among his responsibilities, he handled customer complaints related to sales practices. By then there were at least twenty complaints filed against LeSuer involving loans against policies, and each of them involved an unauthorized loan for which LeSuer signed the customer request form. He admitted that during the time involved there was nothing in the policies provided to the insureds which informed them that an agent could take out loans against their policy without their approval or written authorization, and that dining the time that the conduct complained of in this case occurred customers would not even be provided notice that a loan was made until the following year’s premium notice was received.
John Doherty was appointed agency manager for the Wyoming agency in 1979. Responsibility for Montana was added to his duties in 1985. Although Equitable had 22,000 policy holders in Montana who owned $400,000,000 worth of life insurance, the company concluded it was not feasible for the state to have its own agency manager.
Doherty testified that because of the distance he was located from Montana, he did not have frequent communication with LeSuer, but he was aware from the agency’s records that from 1985 to 1987 LeSuer was selling “leveraged policies.” However, he had not been advised of the complaints made against LeSuer with other offices until they were brought to his attention by the plaintiffs’ attorneys.
He stated that LeSuer was terminated as an agent in 1989, but not because of sales practices which Doherty described as “fraudulent.” LeSuer was finally terminated by Equitable for lack of production.
There was additional evidence that managerial agents for Equitable were aware of LeSuer’s dishonest sales practices, but did nothing to prevent them from being repeated. In the interest of avoiding repetition, we will not set forth all of the evidence in this opinion.
In determining whether there is sufficient evidence to support a jury’s verdict, we review the evidence in the light most favorable to the party which prevailed. The prevailing party is also entitled to any reasonable inference that can be drawn from the facts which are proven. Silvis v. Hobbs (1992), 251 Mont. 407, 411, 824 P.2d 1013, 1015; See Jacques v. Montana Nat’l Guard (1982), 199 Mont. 493, 504, 649 P.2d 1319, 1325. Applying that standard of review to the evidence that has been described, we conclude that there was clear and convincing evidence from which a jury could find that both subparagraphs (b) and (d) of § 909 were proven in this case. Conduct by LeSuer, which was described by his own coworkers as unethical, and by his managerial personnel as fraudulent, was reported repeatedly to his supervisors and to high executive officers of Equitable. In spite of those reports, he was retained by the company. Furthermore, it can be inferred from the testimony that LeSuer’s supervisors or managerial agents approved of his conduct. LeSuer testified himself that when he was supervised by Blumer, Blumer frequently made disparaging remarks about customers, such as “piss on ’em.” He also testified that when he reported similar dishonest sales practices by another agent, he was told by Blumer not to worry about it. Finally, he testified that his practice of financing new policies by a combination of dumping old policies and borrowing money on behalf of the client was never criticized by Equitable officials in Billings, Cheyenne, Fresno, or New York.
For these reasons, we conclude that the evidence that plaintiffs were entitled to recover punitive damages against LeSuer and Equitable was supported by substantial credible evidence and that the evidence was clear and convincing. The jury’s verdict to that effect is affirmed.
ISSUE 7
Should the plaintiffs’ compensatory damage awards be reduced by a percentage equal to the degree to which the jury found that each plaintiff was contributorily negligent?
After the entry of judgment in favor of the plaintiffs, LeSuer and Equitable moved the court to amend the judgment by reducing the actual damages awarded to the plaintiffs by the percentages of their contributory fault. That motion was denied by the District Court.
As authority for their contention that plaintiffs’ damages should be reduced by the percentage of their contributory negligence, the defendants rely on § 27-1-702, MCA, which provides as follows:
Contributory negligence shall not bar recovery in an action by any person or his legal representative to recover damages for negligence resulting in death or injury to person or property if such negligence was not greater than the negligence of the person or the combined negligence of all persons against whom recovery is sought, but any damages allowed shall be diminished in the proportion to the amount of negligence attributable to the person recovering.
(Emphasis added.)
The plaintiffs respond that § 27-1-702, MCA, clearly authorizes reduction of damage awards based on contributory negligence only to the extent that the defendants’ liability is also based on negligence. They contend that since, in this case, all of their actual damages were independently caused by the defendants’ fraud, there is no basis for reducing their recovery pursuant to the comparative negligence statute.
The defendants contend, however, that the plaintiffs’ negligence can be compared to the defendants’ fraudulent conduct for purposes of reducing their recovery pursuant to our prior decisions in Martel v. Montana Power Co. (1988), 231 Mont. 96, 752 P.2d 140, Drilcon, Inc. v. Roil Energy Corp. (1988), 230 Mont. 166, 749 P.2d 1058, and Evans v. Teakettle Realty (1987), 226 Mont. 363, 736 P.2d 472. For the following reasons, we conclude that the cases relied on by the defendants are inapplicable to the facts established in this case.
In Evans, the plaintiffs alleged that they purchased an uninhabitable home as a result of the defendant realtor’s negligence and violation of the Montana Consumer Protection Act (§§ 30-14-101-142, MCA). The defendant alleged that the plaintiffs’ contributory negligence caused their own damages. After trial, a jury found that the defendant violated the Consumer Protection Act, that eách party was fifty percent at fault based on negligence principles, and that the plaintiffs’ damages were $28,000. Evans, 226 Mont. at 364-65, 736 P.2d at 473. The verdict did not specify what amount of those damages was attributable to the violation of the Consumer Protection Act, as opposed to the parties’ negligence. The district court allowed reduc tion of the plaintiffs’ damages by fifty percent. On appeal the plaintiffs contended that the district court erred when it compared their negligence to the defendant’s Consumer Protection Act violation for purposes of reducing their recovery. Evans, 226 Mont. at 365, 736 P.2d at 473. In affirming the district court, we noted that based on the instructions given to the jury, damages for violation of the Consumer Protection Act were different than the damages recoverable for negligence, but that based on the jury’s verdict there was no way for us to determine what amount of the total damages were awarded for each cause of action. Therefore, based on the inadequacy of the record, we affirmed the district court. Evans, 226 Mont. at 366, 736 P.2d at 473-74. In dissent, Justice Sheehy noted that the instructions given to the jury, as interpreted by the special verdict, were so confusing, that the entire case should have been retried. Evans, 226 Mont. at 367, 736 P.2d at 474.
Evans has no application to the facts in this case. The plaintiffs in this case recovered damages based on five independent causes of action and the damage instruction was the same for each cause of action. Therefore, it was not necessary for the district court to reduce the plaintiffs’ damages based on confusion about which damages were attributable to the defendant’s negligence, as opposed to the defendant’s fraudulent conduct.
In Drilcon, the issue was not whether a plaintiff’s contributory negligence could be compared to a defendant’s fraudulent or intentional conduct. The issue raised by the defendant on appeal was whether a jury verdict form which allowed the jury to consider the defendant’s negligence, as well as fraudulent conduct by third parties when it apportioned liability, was unduly confusing in light of the defendant’s contention that the third parties’fraudulent conduct was an intervening and superseding cause of the plaintiff’s damages. However, since the jury actually found that the defendant was ninety-five percent negligent and the plaintiff was five percent contributorily negligent, we held that the defendant was not prejudiced by the form of the special verdict. Since there was no prejudice, we concluded there was no cause for reversal based on the district court’s verdict form. Drilcon, 230 Mont. at 173, 749 P.2d at 1062. Drilcon clearly has no relevance to the issue raised by the defendants on appeal.
In Martel, the plaintiff suffered permanent injuries when he was electrocuted after coming in close proximity to the defendant’s electric power transmission line. Martel, 231 Mont. at 98, 752 P.2d at 142. He alleged, and the trial court concluded, that he had proven willful and wanton conduct on the part of the defendant which contributed to the cause of Ms injuries. However, the district court allowed the jury to compare the plaintiff’s negligent conduct to the defendant’s conduct for the purposes of apportiomng liability. On appeal, the plamtiff contended that based on our prior decisions negligence could not be compared to willful and wanton misconduct. We noted that the rule relied on by the plaintiff preceded the enactment of comparative negligence in Montana and reversed that rule. Martel, 231 Mont. at 99-100, 752 P.2d at 142-43. We held that:
[A]ll forms of conduct amounting to negligence in any form includrng but not limited to ordinary negligence, gross negligence, willful negligence, wanton misconduct, reckless conduct, and heedless conduct, are to be compared with any conduct that falls short of conduct intended to cause injury or damage.
Martel, 231 Mont. at 100, 752 P.2d at 143 (emphasis added).
As is evident from the quoted portion of Martel, we did not hold that a plamtiff’s negligence could be compared to conduct by a defendant wMch was mtended to cause harm for purposes of reducmg the plaintiff’s recovery pursuant to § 27-1-702, MCA.
In this case, the jury found that plaintiffs were entitled to recover punitive damages based on mstructions wMch reqmred that they first find that misrepresentations were made for the purpose of causing damage to the plamtiff. Therefore, based on the jury’s find-Mg, and based on the plam language of the comparative negligence statute and our application of that statute m Martel, we conclude that the defendants’ fraudulent conduct is not a form of negligence to wMch the plaintiffs’ negligence can be compared for the purpose of dimiMsMng the plamtiffs’ recovery of actual damages.
For these reasons, we affirm the District Court’s order denying the defendants’ motion to amend its judgment in favor of the plamtiffs.
ISSUE 8
Did the District Court err by its award of puMtive damages made pursuant to § 27-1-221, MCA?
Although liability for punitive damages must first be determined by the trier of fact which in this case was the jury, and although the jury has the responsibility for, in the first instance, determining the appropriate amount of punitive damages, the district court must, pursuant to § 27-1-221(7)(c), MCA, review the punitive damage award based on specified criteria. Following that review, and based on its findings as applied to those criteria, the district court may increase, decrease, or affirm the jury’s verdict. In this process, the district court has broad discretion. However, its discretion is not unlimited. If it decides to increase or decrease the jury verdict, its decision must be supported by the statutorily prescribed criteria, by findings of fact which are supported by substantial evidence, and by findings of fact which are not inconsistent with findings that are implicit in the jury’s verdict. See DeBruycker v. Guarantee Nat’l Ins. Co. (1994), 266 Mont. 294, 300, 880 P.2d 819, 822.
We will review the district court’s findings made pursuant to § 27-1-221, MCA, based on the three-part test set forth in Interstate Production Credit Association v. DeSaye (1991), 250 Mont. 320, 323, 820 P.2d 1285, 1287, to determine whether they are clearly erroneous. We will review the district court’s decision to reduce, increase, or affirm the jury’s verdict regarding punitive damages to determine whether the district court abused its discretion. See Dees v. American Nat’l Fire Ins. Co. (1993), 260 Mont. 431, 449, 861 P.2d 141, 152.
All of the parties contend on appeal that the District Court erred by the amount of punitive damages it awarded pursuant to its process of statutory review.
LeSuer contends that the District Court abused its discretion by not completely setting aside that amount assessed by the jury against him. He points out that § 27-1-221(7)(a), MCA, requires that a defendant’s financial condition be considered when arriving at the amount of punitive damages and that there was no evidence of his financial condition. However, there was no evidence of his financial condition because he produced none, and therefore, based on our previous holdings, LeSuer’s complaint is without merit. As we recently pointed out in Maurer v. Clausen Distributing Co. (1996), [275 Mont. 229], 912 P.2d 195, 198-99:
In Gurnsey v. Conklin Co., Inc. (1988), 230 Mont. 42, 55, 751 P.2d 151, 158, we stated a plaintiff is not required to show proof that a defendant’s net worth supports an award of punitive damages. If the defendant’s net worth does not support an award of punitive damages, the defendant must produce evidence to that fact. Gurnsey, 751 P.2d at 158. Tucker [defendant] should not gain an advantage from failing to produce evidence of his net worth. Accordingly, there was no evidence that Tucker’s net worth could not support a punitive damage award of $75,000, and so, the District Court erred in vacating the jury’s award of punitive damages against Tucker. For these reasons, we affirm the District Court’s refusal to vacate
the punitive damage award against LeSuer.
Equitable contends that the punitive damage award assessed against it by the jury should have been further reduced or set aside for the following reasons:
1. The jury verdict was a result of passion and prejudice based on appeal to local bias and should be set aside pursuant to our decision Safeco Insurance Co. v. Ellinghouse (1986), 223 Mont. 239, 725 P.2d 217.
2. The District Court’s findings made pursuant to § 27-1-221(7), MCA, either favored Equitable or were clearly erroneous.
By cross-appeal the plaintiffs contend that pursuant to our decision in DeBruycker the district court is not free to substitute its judgment for that of the jury; and that based on the net worth of Equitable, and LeSuer’s failure to produce any evidence of his net worth, there was no evidence that the jury’s verdict was based on passion and prejudice.
Resolution of the issues raised by Equitable and the plaintiffs is more problematic than the issue raised by LeSuer and requires scrutiny of the District Court’s findings in light of the criteria the District Court was required to consider pursuant to statute. The following are the criteria set forth at § 27-1-221(7)(b)(i)-(ix), MCA, and a summary of the court’s findings regarding each as it applied to each defendant:
(i) The nature and reprehensibility of the defendants’ wrongdoing.
LeSuer
IV.
The nature of LeSuer’s wrong was that he deliberately deceived plaintiffs and others concerning the policies they had purchased in order to secure their business and earn commissions. He wrongly advised these, and other insurance clients, concerning the manner of payment of policy premiums, which resulted in loans against the policies, reduced the amount of insurance, and in some instances terminated coverage. He acted purposely and knowingly. He first gained the trust of his clients, and then defrauded them. The nature and reprehensibility of LeSuer’s acts justify the amount of punitive damages awarded against him.
Equitable
V.
Equitable hired LeSuer to sell its policies. LeSuer was assigned to another agent for training. The evidence showed that the train ing agent was engaged in highly questionable practices, and was essentially unsupervised. ...
VI.
... When another agent, with more seniority, and whose integrity was proven, complained about LeSuer’s treatment of customers, such complaint was ignored. ...
VII.
Equitable had notice that something was amiss. At least five times before he left the company complaints were received from customers. ... No actions were taken to prevent serious harm to insureds, or to find out if other irregularities existed.
VIII.
Even after Equitable had more than adequate notice of the problems with LeSuer, nothing was done. ... Even though the amount of business Equitable conducted in Montana was substantial, policies here were a very small percentage of the total business, and the territory was substantially ignored by management.
IX.
... [Its] policy of urging customers to trust and rely on agents, combined with lack of supervision of the agents, and failure to make any serious attempt at investigation of known complaints, is truly reprehensible conduct. Such conduct, in conjunction with the remaining facts found by the Court, justifies the amount of punitive damages awarded by the jury.
(Emphasis added.)
(ii) The extent of the defendants’ wrongdoing.
LeSuer
X.
LeSuer not only defrauded plaintiffs here, but many others, as evidenced by the number of complaints that have come to light. It is very probable that he either did, or was willing to, lie to all of his customers. LeSuer’s wrongdoing was as widespread and extensive as his service area.
Equitable
XI.
... It is also apparent that Equitable handled complaints from insureds all over the United States in its New York office. These complaints were not looked at with protection of an insured in mind, but rather from the standpoint of how to protect the company. The evidence at trial was clear and convincing that while Equitable courted the public by posing as a caring, even paternal, company, it put its own interests above the interests of its insureds.
The Court recognizes that it would be next to impossible for these, or any, plaintiffs to examine the records of a substantial portion of Equitable’s thousands of agents to find such fraud. However, with the lack of such evidence the culpability of Equitable is somewhat mitigated.
(iii) The intent of the defendants in committing the wrong.
LeSuer
XII.
LeSuer’s intent in committing the wrong was not directly to harm the plaintiffs, or the others he lied to. His intent was to switch insurance policies, or sell new policies, so that he could earn commissions. He obviously did not care what the effect on the insured’s would be, he just wanted his commissions. He obviously knew what he was doing, and cared not about his clients.
Equitable
XIII.
Equitable’s intent, as it affected plaintiffs’ claims, was to concentrate it resources in those areas of sales and investments which generated profit, and to pay insufficient attention to internal controls that protected its insureds.
... Equitable’s willingness to sacrifice its insureds’ best interests to increase profits easily justifies the amount of punitive damages.
(Emphasis added.)
(iv)The profitability of the defendants’ wrongdoing, if applicable.
LeSuer
XIV.
LeSuer profited from the fraudulent sales to plaintiffs and to other customers. He earned greater commissions on the sale of new policies, and earned renewal commissions. ...
Equitable
XV.
Equitable profited from the sales of the policies to the plaintiffs. It also profited from other misrepresentations by LeSuer. ...
(v) The amount of actual damages awarded by the jury.
LeSuer and Equitable
XVI.
The amount of actual damages awarded, $358,591.00, is substantial. Also, it is everything that plaintiffs prayed for. It is doubtful that LeSuer will be able to make a substantial contribution to satisfaction of the judgment for actual damages. Based on the evidence, it is just as doubtful that payment of the full amount of such damages would begin to be enough to impress upon Equitable the extent of its wrongdoing.
(vi) The defendants’ net worth.
LeSuer
XVII.
LeSuer’s net worth is unknown. He chose not to give evidence concerning his assets. It is known that he is physically ill and that he is retired. His actions, leading to the award of actual damages, justify the award of punitive damages.
Equitable
XVIII.
Equitable’s net worth in 1993 was $1,832,462,923.00. Equitable introduced no evidence of a change. The jury’s award, while substantial, is hopefully enough to make Equitable examine its policies, but will not affect the solvency of the company, or endanger its ability to perform its insurance contracts. Reserves are shown by Equitable’s financial statement to be sufficient, after payment of the verdict here, to protect policy holders.
The net worth of Equitable makes it apparent that an award of punitive damages must be substantial to be effective.
(Emphasis added.)
(vii) Previous awards of punitive damages against the defendants based on the same wrongful act.
LeSuer and Equitable
XIX.
The evidence does not reveal any previous awards of exemplary or punitive damages against either LeSuer or Equitable. Thus, there is no showing that either defendant would be punished more than once for conduct such as that proved in this case.
(viii) Potential or prior criminal sanctions against the defendants based on the same wrongful act.
LeSuer
XX.
While it might be possible to prosecute LeSuer for criminal fraud, it is very unlikely that such will happen, and the statute of limitations has probably run if criminal proceedings were contemplated.
Equitable
XXI.
Criminal action against Equitable is not a viable remedy. Its corporate nature would make punishment via the criminal statutes virtually impossible. Punitive damages are the only practical way of making an example of Equitable and deterring the conduct found malicious and fraudulent here.
(ix)Any other circumstances.
XXII.
The jury in this case was conservative by nature, listened carefully to the evidence, and gave no indication that they acted out of passion or prejudice. The jury did not act out of ignorance. They considered the evidence and coolly decided that punishment should be 11/2% of Equitable’s net profit for 1993. [$408,523,011] The jury was convinced, as is the Court, that a sizable award of punitive damages against both defendants is both warranted and necessary.
The District Court also found that while LeSuer no longer sold insurance and did not need to be deterred from further fraudulent conduct, it was necessary to make an example of him in order to deter others from acting similarly, but that his retirement and lack of knowledge concerning his net worth tended to reduce the amount of the award. The court also found that as far as Equitable was concerned, the jury’s verdict was rationally based, was not the result of passion and prejudice, was necessary to get Equitable’s attention, and that “[t]he very size of the punitive damage award against Equitable is not a circumstance that operates to either increase or reduce the amount.” The court decided though that because the full magnitude of LeSuer’s wrongdoing was not known until after he retired, and that because some changes in its practices were made after that discovery, those efforts justified some reduction in the amount of punitive damages awarded.
For these reasons, the District Court reduced the punitive damage award assessed against LeSuer to the amount of $18,000, and the amount of the punitive damage award assessed against Equitable to $4,000,000.
We conclude, based on our review of the record as set forth in previous portions of this opinion, that the District Court’s findings, with the exception of Finding XII, are supported by substantial evidence and are not clearly erroneous. Finding XII, to the effect that LeSuer did not intend to harm the plaintiffs or others that he lied to, directly contradicts the District Court’s Finding IV that LeSuer deliberately deceived the plaintiffs and others for his own profit, knowing that by doing so, he reduced the amount of their insurance, and in some instances terminated their coverage. We conclude that that finding is not supported by substantial credible evidence, and therefore, is clearly erroneous.
For this reason, we conclude that the District Court did not abuse its discretion when it concluded that an award of millions of dollars was necessary to get Equitable’s attention and that the very size of the punitive damage award was justified. We conclude, therefore, that Equitable’s objections on appeal to the District Court’s punitive damage award, and the findings on which that award was based, are without merit.
On the other hand, it is necessary to examine the District Court’s reduction of the jury’s punitive damage awards based upon the statutory framework for arriving at punitive damages.
While it is true that the district court is given broad discretion to either increase, decrease, or affirm a jury’s punitive damage award, the jury’s role is not without significance and cannot be ignored. Pursuant to § 27-1-221(7)(a), MCA, it is the jury which must first determine whether punitive damages are recoverable, and then, in a separate proceeding, determine, in the first instance, the amount of punitive damages to be awarded. To hold that the district court has complete and unbridled discretion to ignore the jury’s award would mean that the function assigned to the jury in this process is meaningless. Therefore, we conclude that while the district court has broad discretion, that discretion must be exercised consistent with the greater weight of those factors the district court is required to consider pursuant to § 27-1-221(7)(b)(i)-(ix), MCA.
That does not mean that the district court’s function is simply to engage in a mathematical calculation to determine whether the majority of factors favor one disposition or the other. Under any given set of circumstances one factor may be weighted more heavily than others. For example, when a defendant’s net worth has been established and simply precludes a substantial damage award, that factor may merit primary consideration. However, in those situations the district court must articulate why one factor weighs more heavily than the other in support of its decision if its decision is to alter the jury’s punitive damage award.
In this case, all of the District Court’s findings that pertained to those specific factors which the District Court was directed to consider by the legislature, with the exception of LeSuer’s net worth, either explicitly or by inference supported the jury’s punitive damage award. LeSuer’s net worth could not be considered because he offered no evidence of that amount. We conclude that under these circumstances the District Court abused its discretion by then setting aside and reducing the jury’s awards based simply on LeSuer’s retirement and the fact that remedial action was taken by Equitable after the extensive and prolonged abuses which caused the damage done in this case.
For these reasons, we reverse the judgment of the District Court entered December 23, 1994, by which the jury’s punitive damage awards were reduced. We affirm the verdict of the jury and order that on remand judgment for the full amount of the jury’s verdict, plus statutory costs and interest, be entered.
CHIEF JUSTICE TURNAGE, JUSTICES HUNT, NELSON, GRAY, LEAPHART and ERDMANN concur.
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PER CURIAM.
Petition by relators for writ of supervisory control or other appropriate order to be directed to the respondents to review, set aside and annul an order allowing complaint in intervention.
The application for writ is denied and the proceeding ordered dismissed.
|
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PER CURIAM.
This is an original proceeding filed by Cornelius Diserly, an inmate of the Montana State Prison, appearing pro se, wherein he seeks a writ of habeas corpus.
Petitioner contends he is an Indian ward, apparently attached to the Fort Peck Indian Reservation. He states he was apprehended on April 23, 1959, at Fairview, Montana, and charged with forgery; that he was taken to the County Jail at Sidney, Montana, appeared before a Justice of the Peace and was bound over to the District Court, bail being fixed; that on or about May 6, 1959, he appeared before the District Court of the Seventh Judicial District, in and for the County of Richland, entered a plea of guilty and was sentenced tó a term in the Montana State Prison.
Petitioner contends that his conviction was illegal because the State of Montana is without jurisdiction over Indian wards for offenses committed by them regardless of the location of the crime charged.
This same contention was before this court in Buckman y. State of Montana, 139 Mont. 630, 366 P.2d 346, and we there held “that as to crimes by Indians within this state, but without the bounds of ‘Indian Country’, it is within the jurisdiction of this state to try and punish such Indians.” Since no part of Richland County lies within the boundaries of “Indian Country” there is no merit to petitioner’s contention.
Petitioner further alleges that he was not advised by the court of his legal rights, nor was counsel appointed to represent him. Section 94-6512, R.C.M.1947, provides for appointment of counsel if desired by a defendant and he is unable to employ such counsel. There is no showing here of prejudice such as would overcome the presumption that the court performed its judicial duty seasonably and with due regularity. A period of more than two years and ten months has elapsed since the arraignment of defendant and the instant petition is the first time such contention has been made before this court and absent a showing of prejudice we must rely upon the presumption.
The writ is denied and the proceeding ordered dismissed.
|
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MR. CHIEF JUSTICE HARRISON
delivered the Opinion of the Court.
This is an appeal by the defendant from a judgment entered in the District Court of Yellowstone County, Montana, in an action to reform and enforce a contract of sale on the ground of mutual mistake.
The plaintiffs, Adolph and Hazel Favero, husband and wife, as the first parties, and the defendant, Gayle Wynacht, and one Neil E. Anderson, as the second parties, on July 21, 1947, entered into a contract of sale whereby the plaintiffs sold the corporate assets of the Abstract Guaranty Company to the purchasers, being the second parties, for the sum of $58,075.19, reserving a one-third interest in a partnership to be formed by the plaintiffs and the defendant and Anderson, each to have a one-third interest therein. The partnership was to be formed after the purchase price and interest thereon had been repaid to the sellers.
Certain preliminary facts should be set forth: Both Wynaeht and Anderson were long-time employees of the Abstract Guaranty Company, a corporation, and were licensed abstracters. Mrs. Alma Welliver was the majority owner and president of the corporation and she made an offer to Wynacht to purchase the firm. Neither Wynacht nor Anderson had sufficient funds to make the purchase and Hazel B. Favero was a longtime friend of Gayle Wynacht so Wynacht contacted Mrs. Favero in June of 1947 concerning possible purchase of the corporation. Two or three weeks passed after the first discussion and Wynacht again contacted Mrs. Favero, who told her she was not interested. This was very disturbing to Wynacht and after much further discussion during which some tears were shed, Mrs. Favero told Wynacht that she would have her accountant look at the corporate books and advise her if she should make the purchase, and that it would take every cent the Faveros could get hold of and they might have to borrow some. It was decided at this conference that if Mrs. Favero decided to buy the business she would sell a two-thirds interest to Wynacht and Anderson and retain a one-third interest for herself.
It must be remembered here that the Faveros knew nothing of the abstracting business, and, according to Mrs. Favero, through out the whole series of negotiations Wynacht handled all the arrangements for the purchase of the corporate assets, the Faveros never contacted anyone in the corporation since Wynacht and Anderson were both employees. Likewise all the parties had a mutual attorney who handled all of the negotiations for them and drew all of the instruments used in the transaction.
On July 16, 1947, a letter was prepared by the attorney, signed by the Faveros, and directed to Wynacht and Anderson outlining in a general way the arrangement between the parties and stating that it was written for the purpose of giving them something for their files for the time being, and therein this statement was made:
“This letter is written to confirm, in a general way, our understanding with each other, should we get the property of the Abstract Guaranty Company that we are trying to buy. In that event we will effect, then, an arrangement with you under which you will be permitted to use the acquired property to carry on an abstract of title business, with the obligation to us to repay our principal investment, with interest thereon, such repayment to be made at the rate of not less than $600 per month. The understanding further is that, when we have been paid our principal and interest, we shall have then and thereafter retain a one-third interest in your abstract of title business and assets, through a proper partnership agreement, and that at such time we will convey to you the property and assets you have been using theretofore. Proper agreements will be drawn to effectuate this plan at the proper time.”
Wynacht and Anderson signified their satisfaction by placing their signatures upon this letter following this statement: “The foregoing is satisfactory to us and we agree to the handling of matters as outlined therein.”
On the same day another letter prepared by the attorney was addressed to the Abstract Guaranty Company which contained this statement:
“* * * we are writing this letter as an offer to buy. all of the assets of your company that are presently used in the conduct of your abstract of title business, * * And among the conditions of the offer was this:
“1. That you shall immediately inventory all of the property so used in the transaction of your abstract of title business and have it checked and certified as to its correctness by Neil Anderson and Gayle Wynacht, presently in your employ, as containing all property so used, and then supply us with such checked and certified copy to be annexed hereto as part of this proposal;
“2. That your Company shall take such corporate proceedings as are required under the laws of the. State of Montana to consummate a sale of the property as above and to vest us with valid title to the same, and shall also, by such corporate proceedings, authorize us, upon the consummation of the sale of the above property, to have the exclusive right to use hereafter the name ‘Abstract Guaranty Company’ in the conduct of an abstract of title business, either by ourselves or otherwise;
“6. That upon the acceptance of this proposal by your company, by its endorsement hereon, we shall immediately pay to your Company the sum of $1,000 as part payment of the aforesaid consideration, and that the balance of the said consideration shall be payable in current lawful money of the United States of America when the foregoing conditions of the proposal have been met by your Company and instruments of conveyance and assignment are delivered to us that are legally effective to transfer a merchantable title to the property and rights involved; that, meanwhile, the undersigned shall be given possession and control of the property we are proposing to purchase, with the right to engage in and carry on the abstract of title business heretofore conducted by your Company and, in that connection, to use the quarters presently occupied by your Company in the Securities Building, Billings, Montana, and under the existing lease of such quarters; * *
There was another letter written on July 17, 1947, making a modification, bnt it is not material here.
On July 18, the Abstract Guaranty Company replied as follows :
“Billings, Montana
“July 18, 1947
“Adolph and Hazel Favero “c/o Wood, Cooke & Moulton “Securities Building “Billings, Montana “Dear Mr. and Mrs. Favero:
“The Abstract Guaranty Company hereby accepts your offer dated July 16, 1947, as modified by Mr. Sterling M. Wood’s letter of July 17, 1947, to purchase all of its assets that are presently used in the conduct of its abstract business. All bills and accounts receivable are to be included in the sale, but all cash on hand and all securities owned by the company are to be retained by it.
“We expect that we will be able to close this deal very promptly.
“Yours very truly,
“ABSTRACT GUARANTY COMPANY
“By /s/ ALMA M. WELLIVER “Its President
“ATTEST
“/s/ Stuart C. Kelly “Its Secretary.”
A special meeting of the stockholders of the Abstract Guaranty Company was held on July 18, and it was attended by Neil E. Anderson, who was one of the stockholders. The letter containing the offer from the Faveros was presented at this meeting and is set out in full in the minutes. A resolution was offered to accept the offer for the purchase of all of the assets of the company, excepting cash on hand and bonds and other securities. This resolution was passed on the unanimous vote of the stockholders. Further discussion was had at this meeting as to the future activities of the company in view of the fact that it would no longer be engaged in the abstract business, and a resolution was offered to liquidate the business and distribute a liquidating dividend to the stockholders and cancel the capital stock of the company, in that thereupon the company should be dissolved. This resolution again was passed by the unanimous vote of the stockholders.
The inventory was prepared and accepted and approved by Wynacht and Anderson. Bill of sale from the Abstract Guaranty Company to the Faveros was prepared and executed on July 19, 1947. The consideration of $64,657.14 was paid to the corporation on July 21, 1947. The difference in amount between the purchase price and contract of sale price ^represented the accounts receivable.
On this latter date an agreement, which was prepared by the parties’ mutual attorney, was executed, which recited that the Faveros had purchased the property listed in the inventory which had been theretofore used by the Abstract Guaranty Company in the operation of an abstract of title business, and that the purchasers Wynacht and Anderson were licensed abstracters and desired to purchase the property listed in the inventory so that it might be used by them in the conduct of an abstract of title business and the owners were willing to sell it for such use. The purchasers agreed to devote their entire time and attention to the business and enter into a partnership for that purpose, with the right to use the property for that purpose but the title to remain in the owners until the agreement was fully performed. The purchase price was $58,-075.19, to be payable not less than $600 per month, commencing September 1, 1947, and contained this further provision:
“2. * # * that, furthermore, if the profits of the abstract of title business of the Purchasers in any year shall be sufficient to give the said Purchasers a good living and leave a surplus of profits, that thereupon one-third of such surplus shall then be paid upon the said purchase price of the property in addition to the required monthly payments; * * ®”
The agreement also contained this provision:
“7. That if, as and when the Purchasers herein shall fully pay to the Owners the principal amount as aforesaid with interest thereon, (and the right is hereby reserved and granted to the Purchasers to pay the entire amount, both principal and interest, at any time) that thereupon the Owners shall be obligated to convey to the said Purchasers the property listed in Schedule A, together with the said appurtenances, reserving to themselves, however, a one-third interest in the said property and appurtenances, and in the profits of the abstract of title business thereafter conducted through the use of such property and appurtenances; * *”
It is apparent from these instruments that the Faveros were purchasing the abstracting business and selling it to appellant and Anderson and they were to form a partnership with the plaintiffs after the purchase price with interest has been repaid, whereby the plaintiffs would have a one-third interest, the defendant a one-third interest and Anderson a one-third interest. The purchase price with interest was repaid in full to the Faveros by December 29, 1954.
On December 31, 1950, Wynacht bought out Neil E. Anderson for the sum of $19,562.20, which she paid at the rate of $500 per month from funds of the Abstract Guaranty Company.
The plaintiffs filed their complaint in this action on April 13, 1955, and thereafter an amended and supplemental complaint was filed wherein plaintiffs prayed:
“(1) That the contract Exhibit ‘A’ be reformed to include and specify in addition to the personal property therein designated, the entire assets, abstract business, title insurance business, good will, and lease-hold interest of the Abstract Guar anty Company, a corporation, as the subject matter of the sale from the plaintiffs to the defendant.
“ (2) That the contract Exhibit ‘A’ be reformed to include the agreement reached by the parties on July 16, 1947, to the effect that the plaintiffs would be entitled to the rights and benefits of partners to the extent of a one-third interest in all the assets and business of the Abstract Guaranty Company from and after the date that the principal sum of $58,512.19 with interest thereon had been fully paid by the defendant.
“(3) That the contract Exhibit £A’ be reformed to include the agreement reached by the parties on July 16, 1947, to the effect that a partnership agreement be made by the parties from and after the date that the principal sum of $58,512.19 with interest thereon had been fully paid by the defendant.
££(4) That the defendant be adjudged to account to the plaintiffs for their share of the profits of the Abstract Guaranty Company from and after May 31, 1954.
££(5) That the court order an accounting to be made by a qualified accountant of all of the books, records, property, income and revenues of the Abstract Guaranty Company from and after July 21, 1947.
££(6) That the defendant be enjoined from distributing to herself any profits until she first distributes to the plaintiffs their share of the profits for the operation of the business from and after May 31, 1954.
“(7) That it be adjudged that the defendant has breached the agreement of the parties by her wrongful distribution of all of the profits to herself since May 31, 1954.
“ (8) That it be declared and adjudged that the defendant has breached the contract by holding herself out to the public as the sole proprietor of the Abstract Guaranty Company and the sole owner thereof.
££(9) That it be declared and adjudged that the defendant has breached said agreement by withdrawing therefrom in equitable amounts of money for her own personal use and benefit, and that her withdrawals be limited to $750 per month, or an equitable sum to be found by the court.
“(10) That the plaintiffs have and recover from the defendant the sum of $45,000 or such sum as may be found due the plaintiffs for breach of said agreement.
“ (11) That the plaintiffs may have interest on all amounts found to be due from and after their payable date.
“ (12) For such other and further relief as may to the court seem meet and equitable in the premises and for the plaintiffs’ costs of suit herein laid out and expended.”
The defendant’s answer, while admitting the execution of the agreement, for the most part consists of a general denial, and specifically denied that the title insurance business was included in the sale of the business conducted by the Abstract Guaranty Company and also disputed the interpretation of the contract between the parties as contended by the plaintiffs. The defenses of the statute of limitations and usury were also raised.
Following a trial before the court sitting without a jury, the court made its findings of fact which generally found the contentions of the plaintiffs to be true, and that a judicial accounting was necessary to adjust the respective rights of the parties. Based upon such findings the court concluded:
“I. .That the said contract dated July 21, 1947, is in full force and effect and has never been terminated; that the contract dated July 21, 1947, was paid up on May 31, 1954.
“II. That a partnership has existed between the plaintiffs and the defendant since May 31, 1954; that the plaintiffs have one-third interest, and the defendant two-thirds interest in the partnership; that the defendant owes to the plaintiffs one-third of the partnership profits from and after May 31, 1954; that plaintiffs’ offer to do equity by assuming plaintiffs’ share of all partnership liabilities from and after May 31, 1954, is equitable and sufficient.
“III. That the contract dated July 21, 1947, be reformed to include and specify in addition to the personal property therein designated the entire assets, the abstract business, the title insurance business, the good will, the leasehold interest of the Abstract Guaranty Company, a corporation, as the subject matter of the sale from the plaintiffs to the defendant.
“IV. That the contract dated July 21, 1947, be reformed to include the agreement reached by the parties on July 16, 1947, to the effect that the plaintiffs are entitled to the rights and benefits of partners to the extent of a one-third interest in all the assets and business of the Abstract Guaranty Company from and after the date that the principal sum of Fifty-Eight Thousand Five Hundred Twelve Dollars and Nineteen Cents ($58,512.19) with interest thereon had been fully paid by the defendant; that the contract of July 21, 1947, be reformed to include the agreement reached by the parties on July 16, 1947, to the effect that a partnership agreement be made by the parties from and after the date that the principal sum of Fifty-Eight Thousand Five Hundred Twelve Dollars and Nineteen Cents ($58,512.19) with interest thereon had been fully paid by the defendant.
“V. Plaintiffs duly performed all covenants and conditions in said contract dated July 21, 1947, to be performed, and all covenants and conditions to be performed as reformed.
“VI. That plaintiffs’ offer to do equity by lodging with the Clerk of this Court a proper bill of sale referred to in Paragraph VII of the Second Cause of Action is equitable and sufficient.
“VII. That under the direction of this Court an accounting be made by a qualified accountant of all of the books, records, property, income and revenues of the Abstract Guaranty Company from and after July 21, 1947.
“VIII. That a judicial accounting is necessary to determine what the defendant owes to the plaintiffs of the partnership profit from and after May 31, 1954, if any; that such an accounting is necessary to determine amounts and the fairness of withdrawals by defendant for her own personal use and benefit; that such an accounting is necessary to determine the respective rights of each party under the agreements so reformed here.
“IX. That the Court reserves jurisdiction to settle and determine any controversies which may arise between the parties in the performance by them of the terms of the decree to be entered. ’ ’
Judgment was thereafter entered pursuant to such findings and conclusions and the defendant appealed.
Defendant has set forth numerous specifications of error but they in general have to do with certain questions which are raised in the argument.
We will list these questions and proceed to a discussion of each.
(1) Was title insurance a part of the abstract of title business?
(2) Was there a mutual mistake?
(3) If there was a mutual mistake was it barred by the statute of limitations?
(4) May the court order an accounting?
(5) May the court reform the agreement to include a partnership between the parties?
(6) Was the arrangement a sale or a usurious loan?
Turning now to a discussion of these various questions:
(1) Was title insurance a part of the abstract of title business?
It is the position of the defendant that an abstract of title business does not include title insurance and that since the agency contract with the title insurance company was issued in the name of defendant and Neil E. Anderson it cannot be considered as a part of the property purchased by the Faveros and resold under the contract of sale.
It is undisputed that the Abstract Guaranty Company was a going business and was to be purchased by the Faveros as a going business, and as such resold under tbe contract. Tbe attorney in preparing tbe contract referred to such going business as tbe “conduct of an abstract of title business” and that tbe property listed in Schedule A attached to tbe contract should be used for that purpose. The property listed in Schedule A was copied from tbe inventory of tbe Abstract Guaranty Company dated July 1, 1947, which bad been accepted and approved by tbe defendant and Neil Anderson. Of tbe parties involved here only tbe defendant knew what comprised conducting an “abstract of title business”, and tbe Faveros knew nothing whatever about tbe business nor did they seek to learn, at all times relying on tbe good faith and representations of tbe defendant. When tbe defendant and Anderson accepted and approved tbe inventory they were aware that it did not mention tbe title insurance business, well-knowing at tbe time tbe title insurance constituted a part of the abstract of title business.
While defendant contends that the sales contract was merely a financing arrangement to afford security to Faveros until tbe principal and interest were repaid, and makes much of tbe fact that tbe abstracting plant was bought one day and sold the same day at tbe same price, reserving a one-third interest in tbe assets and one-third interest in the profits of tbe abstract of title business after the full principal and interest were repaid, in our view this is not a correct interpretation of the arrangement. Tbe purchase price and interest were repaid not from tbe funds belonging to Wynacht and Anderson but from tbe funds accruing in tbe business and therefore tbe Faveros contributed one-third of their interest in such funds to repaying themselves tbe purchase price which they advanced. This should be borne in mind at all times in our consideration of this matter since it seems to have been entirely overlooked by tbe defendant.
Under tbe contract, except for wages, designated therein as “a good living” to be paid to the defendant and Anderson, tbe two persons who would devote their entire time to the business, profits accruing from the operation were to be applied on the contract until the principal and interest had been paid. It was the same type of business arrangement that is entered into every day in the business world between those who have the money to back a business venture and those who have the acumen and knowledge to operate a business but are without funds to make the purchase.
This is not a situation where the Faveros received one-third of the profits of the business and the defendant and Anderson repaid the principal and interest from their two-thirds share.
From the record here it is apparent that title insurance policies are written in the office of the company, or written by the company as agent, the receipts therefrom have been mingled with other receipts of every nature, all expenses incident to writing title insurance are paid by the company, in other words it forms, and is, an integral part of the operations of the Abstract Guaranty Company.
It is well known that to write title insurance it is necessary to have access to plats and record indexes and they were available here, being owned by the company. If it were true that the title insurance business was no part of the abstract of title business, what payment has been made by the defendant or her former partner Anderson to the company for the use of its property, or for the quarters in which such title insurance business has been conducted?
There have been none, and rightly so, since the abstract of title business covered all the incidents customarily found therein, which in this instance, since it was a going business which was purchased, included the physical properties such as desks, typewriters, plats, indexes, and so forth, and the wares which could be produced from the use thereof, abstracts, title insurance policies, and the like, and the intangible assets such as the good will and the name under which the company operated. Under the facts present in this case it is our opinion that title insurance was a part of the abstract of title business.
(2) Was there mutual mistake?
As before pointed out, one attorney was employed and he represented all parties to the transaction and drafted the various instruments. He testified that it was the intention of the parties to transfer the whole business of the Abstract Guaranty Company and whatever it possessed, and in drafting the instruments he was attempting to accomplish that purpose. There was no quibbling or quarreling between the participants. They were all on extremely friendly terms. Counsel freely admitted he was extremely busy at the time the instruments were prepared, and the parties were more or less constantly after him to get things done, and he did not define abstract of title business in the manner it had been explained to him. As he testified:
“Q. What I am getting at, is there two businesses referred to in Plaintiff’s Exhibit 2 [a partnership agreement between Gayle Wynacht and Neil E. Anderson], and one business referred to in Plaintiff’s Exhibit No. 1 [the sale contract] ? A. I am going to answer that question in this way, and correct me or strike it out as you please: It was constantly brought to my attention in the conversations and in the negotiations and contracts leading up to the drafting of all of these documents that an abstract of title business, the maintaining of an abstract of title business comprehended not only the preparation of abstracts, using the indices in that connection, but also it would include and did include the obtaining of title insurance; that the carrying on of an abstract business necessarily comprehended those items. Does that answer your question ? ’ ’
On cross-examination he testified:
“Q. There is nothing in the letter dated July 16th, 1947, which would indicate in any way how the title insurance contract would be transferred, was there? A. As I have told you before and say again, I can only answer your question in this way: That the effect of this letter was to show that the Abstract Guaranty Company was to be put out of business, and that the others were to take over.
“Q. Well, was there any arrangement made by you as an attorney handling this transaction, to transfer the agency contract for title insurance, if there was one, to the proper parties?
A. No arrangement was made with me.
“Q. Was anything done in that respect? A. Yes, as I have told you before, it was the understanding of all of the parties, as expressed to me, I didn’t have it because I didn’t know, that in the arrangement to carry on an abstract of title business, that comprehended everything, and therefore that there would be transferred under those conditions, with the concern put out of business, whatever the company had been using theretofore for its business. ’ ’
Further he testified:
‘ ‘ Q. That agreement, at least at that time, represented what you felt to be the fair understanding of the parties, and that they were bound thereby? A. Yes, subject to the matter of mistake as to some items that I referred to earlier.
“Q. Well now, that agreement does not in any place provide for a partnership between the parties ? A. No, but the earlier document did.
“Q. Yes, I am referring only to Plaintiff’s Exhibit 1 [the sales contract]. A. Well, I have already said heretofore, and I may again now, that that was omitted through mistake on my part.”
It is hard to conceive of a clearer acknowledgment of mutual mistake by the attorney for all concerned.
In Voyta v. Clonts, 134 Mont. 156, 328 P.2d 655, following a line of previous decisions therein cited, we held that in order to reform a contract on the ground of mutual mistake the evidence of the mistake must be clear, convincing and satisfactory.
In our opinion the evidence here is of that character, and we fail to perceive any credible evidence to refute it.
(3) If it was a mutual mistake was it barred by the statute of limitations?
Defendant contends that the cause of action for reformation is barred by section 93-2607, R-.C.M.1947, subd. 4, which reads: “Two-yew limitation. Within two years: * * *
“4. An action for relief on the ground of fraud or mistake, the cause of action in such case not to be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake.”
It is argued that if a mistake was made it occurred in July 1947, and this action was not commenced until approximately seven years later. The reasoning of defendant is that she was not guilty of any concealment or any other practice which would have prevented discovery of the alleged mistake and that plaintiffs are presumed to know what they might have discovered by ordinary diligence, and in the absence of any showing of justification or excuse on their part the action must be held to be barred.
Mrs. Favero testified:
“A. I thought I had purchased everything that the Abstract Guaranty Company, a corporation, had, and when I was up at Mr. Wood’s office on July 21st, I asked Neil and Gayle both if they had inventoried everything, and Gayle said, ‘Yes, I went over it with Stuart Kelly and on the bill of sale you received my signed statement, everything.’
“Q. So that your understanding was different than what the bill of sale from the corporation was, is that right ? A. No, I thought it meant all personal property of every kind and everything that they had.
“Q. Well, when did you think that it didn’t give you that? A. In 1954.
“Q. Now when, in 1954, Mrs. Favero? A. In December.”
It was in December of 1954 that the Faveros became aware that defendant was asserting her right to all the profits of the business. The action was commenced in April of 1955, which indicates that the action was promptly brought and well within the two-year limitation provided by statute, after the discovery of the facts constituting the mistake.
(4) May the court order an accounting?
It is defendant’s contention that no demand for an accounting has been made nor any refusal to furnish one. It is true that the plaintiffs’ accountant kept the books and submitted statements to them. Defendant cites Wetzstein v. Boston & M. Co., 28 Mont. 451, 72 P. 865, as authority that a demand and refusal are necessary prerequisites to be pleaded and proved in order to maintain an action for an accounting.
Plaintiffs requested an accounting for the purpose of checking the reliability of the monthly balance sheet and income statement and the court found that a judicial accounting was necessary to adjust the respective rights of the parties, and concluded that it was necessary to determine what the defendant owed to the plaintiffs, to determine amounts and fairness of withdrawals by defendant for her own personal use and benefit, and to determine the respective rights of each party under the agreements as reformed. We believe the court was correct in its finding and conclusion.
There is a difference between an action for an accounting and an action founded in equity where the accounting is sought as one of the incidents of granting complete relief such as exists here. See Thompson v. Bantz, 136 Mont. 210, 346 P.2d 982, a recent ease where this same procedure was followed.
(5) May the court reform the agreement to include a a partnership between the parties?
Under the doctrine that the court will not perform an idle act, defendant contends that the court may not reform an agreement to include a partnership, since equity will not enforce the making of a partnership agreement.
Defendant cites the rule that “An agreement to enter into a partnership at will or for an indefinite period will not be enforced in equity, since such partnership may be immediately dissolved by either party.” 81 C.J.S. Specific Performance, § 15, p. 438.
We do not disagree with such statement but it does not con tain the whole story. There is this further addition: “However, a decree ordering the execution of the partnership’s articles will nevertheless be made if necessary to invest a partner with the legal rights for which he had entered into the partnership, although after the articles are executed, the parties cannot be compelled to act under them.” 81 C.J.S. Specific Performance § 15, p. 439.
‘ ‘ * * * Where the partnership is for a fixed term, where there has been part performance on plaintiff’s part, and where it is essential to the ends of justice that the status of the parties be fixed by the execution of the partnership articles, this may be decreed, although the parties will not be compelled to act under them after the execution.” 81 C.J.S. Specific Performance § 81, p. 591. Citing Hart v. Hart, 188 App.Div. 283, 176 N.Y.S. 790; Goldberg v. Kitchstein, 36 Misc. 249, 73 N.Y.S. 358. See also Somerby v. Buntin, 118 Mass. 279.
However, the judgment here did not order that a partnership agreement should be entered into. The court ordered the contract reformed to call for the formation of a partnership. This, of course, is in line with the letter of July 16,1947, which stated: ‘ ‘ The understanding further is that, when we have been paid our principal and interest, we shall have then and thereafter retain a one-third interest in your abstract of title business and assets, through a proper partnership agreement * *
The court’s judgment then recited that the parties were partners since May 31, 1954, and that all assets of the company were partnership property and directed that the company be carried as a copartnership on any leases, agency contracts, etc.
The court was merely carrying out the intent of all the parties as to the manner of handling the matters, as evidenced by the letter and acceptance. The court did not create a new vehicle, i. e., a copartnership, it held one had been in existence under terms of the parties’ own agreement, and clearly this was necessary to vest title in the plaintiffs.
(6) Was the arrangement a sale or a usurious loan?
Defendant, under a counterclaim contended that the arrangement only contemplated a loan of money by the Faveros. Under the provisions of section 47-125, R.C.M.1947, limiting the rate of interest under a written agreement in an amount not exceeding ten percent, defendant sought to recover the penalty provided in section 47-126, R.C.M.1947, being a forfeiture of a sum double the amount of interest which the instrument carried which had been agreed to be paid thereon.
While defendant cites authorities for her position we do not believe they are applicable to the situation here. Clearly a reading of the agreement between the parties indicates that it was a sale contract.
Under our statute, section 93-216, R.C.M.1947, in appeals of an equitable nature, we review all questions of law and fact arising upon the evidence presented in the record.
We have many times stated in our opinions, that in equity cases we will not disturb the trial court’s findings where there is substantial evidence to support them, and we cannot overturn findings unless there is a decided preponderance of the evidence against them. See Bouma v. Bynum Irr. Dist., 139 Mont. 360, 364 P.2d 47; Roth v. Palutzke, 137 Mont. 77, 350 P.2d 358; George v. Fish Creek Irr. Co., 135 Mont. 490, 342 P.2d 738; Havre Irr. Co. v. Majerus, 132 Mont. 410, 318 P.2d 1076.
Portions of the evidence have been referred to in this opinion heretofore but other portions should be considered in determining where the preponderance of the evidence lies.
The defendant was called for cross-examination as an adverse party by the plaintiffs. She testified that she did not know whether the corporation sold its entire business for the reason that she was not called in on the negotiations. She did admit that she knew it afterwards when she was ready to sign the papers, but not until then. She further testified that she and Neil Anderson were very concerned about what was going on.
Contrast this with the testimony of the mutual attorney who was asked with regard to the arrangements this question:
“Did you discuss this matter with Faveros and Mrs. Wynacht in your office, all together at any time? A. Well, off and on; you know, they would come in and go out and come in and go out, and we probably had a lot of talks on that subject.”
Wynacht further testified that there was a verbal agreement by the owner of the corporation to sell to her and that the Faveros “beat her out of it,” although admitting that after she had been given the opportunity to buy she contacted Mrs. Favero. Wynacht’s version of the transaction was that it was her understanding that the Faveros were going to loan her the money and the first knowledge she had that it was otherwise was when the sale contract was presented to her to sign and that while she signed the contract with the Faveros she was not very satisfied or happy. She further stated that she had nothing to do with the preparation of the inventory though she signed it, which was for the purpose of certifying to its correctness. She stated first that the attorney who prepared the papers was not her attorney, that he was representing the Faveros; then she later admitted that the attorney was helping her also, so it was not necessary that she have an attorney. Finally she admitted that she paid such attorney, but stated he considered it as a gift and not as a fee.
With reference to her feelings toward Mrs. Favero prior to and in 1947, it appears that Wynacht was the best lady at Mrs. Favero’s wedding, they were very good friends, and Wynacht went on the Favero’s honeymoon with them for about a week.
Now testifying years later when this lawsuit was tried, Wynaeht claimed she was duped and did not know until the morning of July 16th about the provisions of the contract and that it was too late then to do anything since the Faveros already had the company in their name. First stating that she did not complain to the attorney, she later stated she did object to the attorney in 1947. She claimed to have objected to the one-third interest, but she did sign the contract. The attorney testified that so far as he could recall at no time had Wynacht ever made any objection to Mm concerting the terms of any instrument. Further, counsel testified:
“Q. Well, did all of the contacts that you have had with them appear to be friendly, not only between you and them, but as between themselves? A. Yes.
‘ ‘ Q. And did it appear to you that Mrs. Wynacht was very happy that she was able to buy into the abstract business? A. I certainly never heard her express any unhappiness in that connection or I would have remembered it. ’ ’
Bef erring back to Wynacht’s testimony again, she stated she expected to be financed to buy the Abstract Guaranty Company by the Faveros and to pay them a reasonable amount of interest and a bonus for the use of their money, but she did not discuss this with the Faveros, these were merely her thoughts.
Despite the repeated statements of the defendant that she was to have all the property personally, this testimony of the mutual attorney is enlightening:
“Q. Was it ever the intention of the parties that Mrs. Wynacht was to have the entire title to all of the business that was bought and sold by these agreements? A. No.
‘ ‘ Q. As you understood it, was it the intention of the parties that after Mrs. Wynacht and Neil Anderson had paid the purchase price of $58,000 plus, that the parties were, the three parties were each to have a one-third interest, Mrs. Wynacht, Mr. Anderson and the Faveros ? A. Well, I will put it this way: That Mr. Anderson and Gayle Wynacht were to have two-thirds and the Faveros one-tMrd.
‘1Q. There never was any other arrangement discussed with you by Mrs. Wynacht, was there, Mr. Wood? A. No.”
Wynacht finally admitted that after she signed the sale contract she decided she was going to have the title insurance business as her own and that it would not be for the benefit of the Faveros.
The record discloses that the title insurance commissions as compared with abstract fees increased each year until in 1952 such, commissions exceeded the abstract fees in amount, and that situation continued thereafter.
. Wynacht’s salary from the corporation was $275 per month, with a profit sharing arrangement, at the time of the sale. Commencing in July of 1947 she withdrew $500 per month; increased it in January 1952 to $600; increased it in January of 1954 to $700, and again in June of 1956 to $850. The evidence further discloses she made very substantial withdrawals in addition to the monthly ones mentioned above.
The gist of Wynacht’s position is tersely stated:
“Q. You don’t feel that the contract you signed amounts to anything, do you? Binds you in any way? A. That is right.
“Q. I take it, Mrs. Wynacht, that therefore you don’t feel that you should pay the Abstract Guaranty Company for anything because you own all the business? A. Right.
“Q. You own just as much interest in the abstract business as you do in the title insurance business, and vice versa? A. Right.
“Q. And you have always felt that way ever since you signed that contract, have you not ? A. That is right.
“Q. And you are — that is why you haven’t paid the Faveros a third, isn’t that right? A. That is right.
“Q. In fact, after you had paid back the $58,000 plus interest, you said to yourself, ‘I am paying the Faveros not a cent more’, is that right? A. No, I didn’t say that to myself, I have never said that to myself.
“Q. Well, at any rate you haven’t paid them, have you? A. That is right, I haven’t.
“Q. And you don’t think that they are entitled to it, do you? A. No, I don’t.
“Q. So you don’t think, then, that the terms of this contract means anything, do you? A. It shouldn’t have been in there.
“Q. Do you? A. No, I don’t because the way it was done.
“Q. And this covers old ground again, but this one ques tion: You didn’t let the Faveros know anything about that until way in the ’50’s some time, did you, until just before this action was brought? A. They knew that I didn’t like that when we signed it.
“Q. I didn’t ask you that. A. They knew that when I signed it, that I didn’t like it.
“Q. Well, I asked you— A. It was a shock to me.
“Q. You never told them? A. Not to my knowledge, I have told Mr. Wood.
“ Q. How many times did you tell him? A. Oh, I don’t know.
“Q. Well, tell the court how you expressed yourself to Mr. Wood, since you remember it distinctly? A. Well, I don’t know how I expressed myself to Mr. Wood.
“Q. Well isn’t it true that you never expressed yourself to Mr. Wood until after I wrote a letter in connection with this matter asking why those profits weren’t divided? A. No, I wrote, I talked to him before that. * # *
“Q. Well, Mrs. Wynacht, it wouldn’t have made any difference to you what words Mr. Wood used to describe the assets sold to you, if in addition to that he said that the Faveros were entitled to a one-third of those assets, you wouldn’t have paid any attention to a contract and paid or honored this one-third of the interest in those assets to the Faveros, regardless of what words had been used to describe the business or those assets, would you? A. Well at that time, and now, it would be a lot different — what I have learned in 12 years, it would be a lot different now than it would have been at that time.
“Q. Well, this is the time to tell us the difference. A. That at that particular time I just didn’t know; that they were entitled to a third, but they had it in their name and here it was— you take it or leave it.
“Q. Well, you don’t feel, you feel the same way now? A. Oh definitely.
“Q. What is the difference you mentioned between the way you felt then and now? A. Well, something could have been done at the beginning, at the beginning there, it would have been different.
“Q. Well, just to carry that through, I meant your feeling hasn’t changed any about this one-third? A. No, that is right.”
Without any discussion of the matter with the Faveros, Wynacht purchased the interest of Neil Anderson in the business.
Having carefully reviewed the evidence, in our view it clearly preponderates in favor of the plaintiffs.
One other point should be considered, and that is the contention raised here in the brief of the respondents that the appeal is premature.
It is our view that such a contention could be raised only by one who is injuriously affected by the judgment, in other words, an aggrieved party.
Plaintiffs certainly cannot assert they are injuriously affected or aggrieved by the judgment or by this appeal. The district court found generally for the plaintiffs in accordance with the issues raised by their complaint, and certainly they have not been injuriously affected, nor are they aggrieved.
The judgment is affirmed.
MR. JUSTICES ADAIR, DOYDE, CASTLES, and JOHN C. HARRISON, concur.
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JUSTICE NELSON
delivered the Opinion of the Court.
This is an appeal from an Eighteenth Judicial District Court, Gallatin County, decision in a dissolution action. We reverse and remand for a new trial.
The dispositive issue on appeal is whether the petitioner was properly allowed to testify by telephone, over the objection of the respondent, at the hearing on the merits.
The petitioner, Judith Spillane (fZk/a Judith Bonamarte — Judith) and the respondent, Mark Bonamarte, (Mark) were married on April 29, 1990, in New Jersey but separated in June of 1991 when Judith obtained a temporary restraining order alleging physical and emotional abuse and threats of violence by Mark. Judith filed a petition for dissolution in July of 1991, and moved to New Jersey the following month, at which time she was six months pregnant.
There is one child of the marriage, Quentin Christopher Spillane (Quentin), bom on November 18,1991. Quentin has resided with his mother in New Jersey at all times. Mark continues to reside in Montana. The parties have agreed that Mark can exercise supervised visitation with Quentin in the state of New Jersey.
This dissolution action came before the Eighteenth Judicial District Court on February 4, 1993, but a portion of the trial was postponed until February 19,1993, when the trial court decided that Judith could testify from New Jersey via the telephone. The telephonic testimony occurred on February 19 over Mark’s objection. On March 22, 1993, the trial court issued its decision awarding sole custody of Quentin to Judith and ordering Mark to pay $310.59 per month for child support, plus arrearages. The court also concluded that Mark could not require that Quentin use his last name, Bonamarte, instead of Judith’s last name, Spillane.
Judith continues to fear Mark and for this reason, as well as the expense of traveling and her inability to find adequate child care for Quentin if she traveled to Montana, she made the request to testify by telephone at the hearing on the merits. It is upon the issue of the District Court’s allowing her telephonic testimony that the disposition of this case rests.
Our standard of review relating to discretionary court mlings is whether the court abused its discretion. Steer Inc. v. Department of Revenue (1990), 245 Mont. 470, 475, 803 P.2d 601, 604.
Mark states that the hearing was originally scheduled for February 4,1993, but when Judith did not appear, the court continued the matter until February 19,1993, when it allowed Judith to testify by telephone from New Jersey over Mark’s objection. He argues that Judith was not placed under oath by a person authorized to administer oaths but that she was merely introduced by someone who claimed to be Judith’s supervisor and stated that she knew Judith. At that time, the Court administered the oath and Judith testified. Mark also reminds this Court that it was Judith who chose Montana as the forum for the dissolution.
Mark also argues that Judith was unable to testify as to matters that required documentary evidence to be considered by the court involving the parties’ income, assets and debts. He states that his counsel’s cross-examination of Judith concerning the parties’ accounts was difficult because the documents being discussed were not available for her perusal in New Jersey. He states that he could not fully cross-examine Judith because the testimony was by telephone.
Finally, Mark argues that “(Rule 611(e)), [M.R.Evid.], make[s] it absolutely clear that a party in all court proceedings (civil included) has a right to confrontation of witnesses and that a witness can only be heard in the presence of the Court and parties.” He concludes that “unless other arrangements had been previously made (such as a prior deposition) there was without question, a clear violation of the rule. The only remedy at this time would be to return the case for a new trial.”
Judith counters that she was afraid of Mark because of past domestic abuse and therefore did not want to return to Montana to testify. Also, she contends that she could not afford the expense of traveling to Montana nor could she find child care for her son and that for these reasons, she wished to testify by telephone from New Jersey, her current home.
Judith asserts that she did testify in the “presence” of her husband and that she was subject to examination by all parties to the action. Further, Mark did not dispute that it was Judith who testified over the telephone. Moreover, Rule 611(e) allows for exceptions to the rule, this case falls within those exceptions and the court has discretion to decide whether to permit telephonic testimony. Finally, Judith maintains that if the decision to allow telephonic testimony is error, it is harmless error because it did not affect the husband’s substantial rights.
Factually, this is a difficult case. It is hard to fault the District Judge who was obviously trying to make the best of a difficult situation and to accommodate Judith’s concerns and the logistical and financial problems associated with her personal appearance at trial. Given the law, however, we must, nevertheless, conclude that the trial court abused its discretion when it allowed Judith to testify by telephone over objection in lieu of personally appearing in court at the hearing on the merits. This error denied Mark a meaningful opportunity to confront the witness, Judith, and to conduct a proper cross-examination. This is more than harmless error and warrants reversal and remand for a new trial.
Discussion
Requiring a witness to testify personally at trial serves a number of important policies and purposes. A witness’ personal appearance in court:
1. assists the trier of fact in evaluating the witness’ credibility by allowing his or her demeanor to be observed firsthand;
2. helps establish the identity of the witness;
3. impresses upon the witness, the seriousness of the occasion;
4. assures that the witness is not being coached or influenced during testimony;
5. assures that the witness is not referring to documents improperly; and
6. in cases where required, provides for the right of confrontation of witnesses.
See Weber, Permissibility of Testimony by Telephone in State Trial, 85 ALR4th 476, 481. We agree that these are sound considerations for requiring, except under specific circumstances within the parameters of our procedural ruíes and applicable statutes, that witnesses testify in person at trial.
In particular, we note that the right of confrontation long provided in all criminal cases, is also required in civil cases in Montana under Rule 611(e) M.R.Evid. Rule 611, M.R.Evid., is primarily based on the similar federal rule of evidence. However, Montana’s subsection (e), is original and provides:
Confrontation. Except as otherwise provided by constitution, statute, these rules, or other rules applicable to the courts of this state, at the trial of an action, a witness can be heard only in the presence and subject to the examination of all the parties to the action, if they choose to attend and examine.
Rule 611(e), M.R.Evid. The importance in Montana of the requirement that a witness testify at trial in the presence of all parties is evidenced by the inclusion of subsection (e) in our adoption of Rule 611, M.R.Evid. The reasoning behind Montana’s addition of subsection (e) is illustrated in Coy v. Iowa (1988), 487 U.S. 1012, 1019-1020, 108 S.Ct. 2798, 2802, 101 L.Ed.2d 857. (Citations omitted.)
The perception that confrontation is essential to fairness has persisted over the centuries because there is much truth to it. A witness “may feel quite differently when he has to repeat his story looking at the man whom he will harm greatly by distorting or mistaking the facts. He can now understand what sort of human being that man is.” It is always more difficult to tell a lie about a person “to his face” than “behind his back.” In the former context, even if the lie is told, it will often be told less convincingly. The Confrontation Clause does not, of course, compel the witness to fix his eyes upon the defendant; he may studiously look elsewhere, but the trier of fact will draw its own conclusions. Thus the right to face-to-face confrontation serves much the same purpose as a less explicit component of the Confrontation Clause that we have had more frequent occasion to discuss-the right to cross-examine the accuser; both “ensur[e]the integrity of the factfinding process.”
Although Coy is a criminal case and applies to a constitutional protection, the principles behind the right to confront witnesses are applicable to civil cases in Montana, as well, and that right is guaranteed in Rule 611 (e), M.R.Evid. The integrity of the factfinding process at trial is undermined where the parties do not have the opportunity to confront each other or the witnesses, where the finder of fact does not have the opportunity to observe the parties and the witnesses and where the opposing party cannot effectively cross-examine the other party or the witnesses.
If the phrase “a witness can be heard only in the presence and subject to the examination of all the parties ...” is to have any meaning, then, in the absence of a specific rule or statutory exception to the contrary, the witness must be physically present in the courtroom to testify personally at trial unless all parties and the court agree to a different method of examination which protects the parties’ rights of confrontation and cross-examination and, at the same time, allows the fact finder to assess the witness’ credibility, testimony and the evidence presented.
Here, it was impossible for the court to make a determination as to the relative credibility of the party-witnesses because it did not have an opportunity to observe the testimony of both Mark and Judith. The parties in a dissolution action often deliver conflicting evidence, and it is the court’s role to determine who is the more credible witness. This can be accomplished most effectively by observing each party’s demeanor during testimony.
Judith’s reasons for testifying over the telephone included fear of Mark, cost of travel and inability to obtain adequate child care for her son while she traveled to Montana for the hearing. Although we recognize that Judith had legitimate concerns about returning to Montana, these concerns do not outweigh the necessity for the trial court to determine credibility. In this instance, the corut could not evaluate the demeanor of the witness nor could it determine whether she was being coached or was improperly referring to documents.
Moreover, it was difficult for Mark’s counsel to effectively cross-examine Judith about the couple’s financial records because Judith did not have those records or copies of those records to which she could refer and provide pertinent testimony. We cannot say that this was a fair trial on the merits when one side was so obviously handicapped and was unable to effectively confront and cross-examine the adverse party.
Furthermore, alternative solutions to Judith’s problems and concerns were available under Section V., Depositions and Discovery, M.R.Civ.R, and one or more of those alternatives could have been pursued instead of simply allowing her telephonic testimony over objection.As Mark’s counsel stated during the hearing, “this case has been pending for a long time already. She was not going to be here, that’s fine, but we could have done this by deposition a long time ago. As recently as this week, I allowed Mr. Bonamarte to be deposed. That could have been done is [sic] she wasn’t going to be here.”
In this case, for example, it would have been possible to present Judith’s testimony at trial by videotaped deposition. See, Rule 30(h), M.R.Civ.R This was done quite effectively in Ferrante by Ferrante v. Ferrante (N.Y. Sup. 1985), 485 N.Y.S.2d 960. The procedure utilized there is described as follows:
Plaintiff’s counsel was advised in advance of the date and time of the telephone conference call. He was instructed to have present at plaintiff’s nursing home at the time of the conference call, a notary to administer the oath to the witnesses and a videotape operator to record the witnesses’ testimony. He was also instructed to provide the plaintiff with exact legible copies of all exhibits to be introduced. The purpose of this was to insure that plaintiff, after identifying each exhibit, could hold it up to the camera to be videotaped, thus permitting the court when reviewing the tape, to ensure that the marked exhibits and the copies in plaintiff’s possession were the same.
Ferrante, 485 N.Y.S.2d at 962.
The plaintifi/witness in that case was a 92 year old woman who was in poor physical condition and was permanently confined to a nursing home in Florida. The court, in solving the dilemma posed by the necessity of taking the plaintiff’s testimony without her presence in court while still protecting the rights of the defendant, stressed the importance of the videotaped record of the testimony. It particularly noted that the plaintiff was provided with copies of each exhibit and she was able to examine them before they were admitted into evidence. Each page of the copy of each exhibit was also videotaped to insure that the proper documents were being used and admitted.
While, within the parameters established in our procedural rules and applicable statutes, the court and counsel are free to agree upon and to utilize different methods of presenting the testimony of and cross-examining a party or witness unable to appear personally at trial to testify, the above-described method at least ensures that the witness’ identity can be established, assures that the witness is not being coached, assures that the witness is not improperly referring to documents (85 ALR4th at 481), and assures that any marked exhibits and copies of the exhibits being referred to and offered are the same. (Ferrante, 485 N.Y.S.2d at 962.) In addition, that method provides the court with a visual record of the witness’ testimony and allows the fact finder the opportunity to draw conclusions about demeanor and credibility. Ferrante, 485 N.Y.S.2d at 962.
Finally, we do not here adopt a per se rule that would preclude the use of telephonic testimony at trial in all cases or circumstances. Where the trial court approves and all parties consent, or at least have sufficient notice to object and/or make alternative arrangements, we see no reason why telephonic testimony cannot be utilized in appropriate situations where special or exigent circumstances dictate the necessity for that type of testimony, where rights of confrontation and cross-examination are not substantially compromised or are otherwise adequately preserved, where the identity and credibility of a witness are not critical and where there is no need to use documentary or tangible exhibits in examining the witness. “Generally, special circumstances such as exigency, consent and knowledge of the witness’ identity and credentials, have dictated the admissibility of telephonic testimony .... In the absence of exigency or consent, telephonic testimony generally has not been allowed.” Byrd v. Nix (Miss. 1989), 548 So.2d 1317, 1319-1320. (Citations omitted.) (Emphasis added.) See also; Aqua Marine Prod. v. Pathe Computer (N.J. 1988), 551 A.2d 195, 200.
None of those circumstances are present in the instant case. Although we sympathize with Judith’s position and the District Court’s attempt to accommodate her situation and concerns, in this case allowing her to testify by telephone at the hearing on the merits over the objection of the adverse party was not an acceptable substitute for her personal appearance in court, particularly given the significance placed upon the right to confront witnesses in civil trials in Montana as set forth in Rule 611(e), M.R.Evid. “The opportunity to observe a witness is so critical to judicial control and effective cross-examination that its denial is manifestly prejudicial.” State ex rel. Juv. Dept. v. Gates (Or. 1987), 740 P.2d 217, 218.
We hold that the District Court abused its discretion in allowing Judith to testify by telephone over objection at the hearing on the merits. We reverse and remand for a new trial in order to allow Mark a meaningful opportunity to “confront” the witness and to effectively cross-examine and in order to afford the opportunity for the trial court to observe the witness and make its determination as to her credibility.
In view of our holding here and the necessity for a new trial, we decline to rule on the other issues raised by the parties involving child support, custody and the District Court’s decision to allow Quentin to retain Judith’s surname.
Reversed and remanded for further proceedings consistent with this opinion.
JUSTICES HARRISON, TRIEWEILER, HUNT and GRAY concur.
|
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On February 19, 1993, the Defendant was sentenced to ten (10) years with three (3) years suspended for Felony Assault; plus conditions as listed in the February 19, 1993 Judgment. The Defendant shall not be eligible for release until he has entered and completed both the anger management and chemical dependency treatment programs. The Defendant is designated a dangerous offender for purposes of parole.
On May 6,1993, 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. G. Todd. Baugh, and Hon. John Warner, Judges
The Sentence Review Board wishes to thank Mr. Howe for representing himself in this matter.
|
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On February 19, 1992, the Defendant was sentenced to Count I, ten (10) years for Issuing a Bad Check; Count II, ten (10) years for Deceptive Practices all of which is suspended; Count III, ten (10) years for Deceptive Practices all of which is suspended and is concurrent to the sentence imposed in Count II. The sentences imposed in Count II and Count III shall he consecutive to the sentence for Count I. Plus conditions as stated in the February 19,1992 Judgment. Credit is given for 199 days time served.
On March 12, 1993, the Defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court.
The Defendant was present and 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, hut 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 12th day of March, 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. John Warner, and Hon. James Purcell, Judges
The Sentence Review Board wishes to thank James Colt for his assistance to the Court.
|
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DECISION
The application of the above-named defendant for a review of the sentence of fifteen years, imposed on December 20, 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 the defendant was convicted of lewd and lascivious acts upon a child (5 years old) punishable by not more than 25 years imprisonment, yet received this sentence of but 15 years with 32 days jail time credit, and .will be eligible for parole consideration in October, 1971, after being received December 23, 1968, although he was originally given a 3 year deferred imposition of sentence subsequently violated by a number of similar acts.
The .contention that defendant should be hospitalized rather than imprisoned may be answered by the fact that the Montana State Hospital in its’ report to the sentencing court stated that defendant is able to differentiate between right and wrong, is competent, able to exercise emotional control, and recommended no further hospitalization. Presuming, as we do, that the sentencing judge was correct in his assessment of the situation, we are unable to say that his disposition of the case was not entirely proper.
Further, any contention that the defendant’s mental condition is such that he is not guilty of the crime for which he was sentenced is not within the power of this Court to consider. Its power. is limited to, “* * * review the judgment so far as it relates to the sentence imposed* * *.” Section 95-2503, R.C.M.1947.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
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MR. JUSTICE SHEEHY
delivered the opinion of the Court.
Defendant Norman Duncan appeals from his conviction following a nonjury trial in the District Court, Gallatin County, of deceptive practices and the sale of unregistered securities.
Defendant was president of Smart Pak, Inc., of Montana, which produced and marketed a dry granulated charcoal lighter (Smart Start) and a combination package of Smart Start and charcoal briquettes (Smart Pak). Smart Pak, Inc., was one of five corporations set up by defendant in different states to produce and market these products. The parent corporation was Survival Heat Products, Inc., of Idaho Falls.
In the fall of 1975 and spring of 1976, defendant discovered that automated packaging machines could not properly seal the special “child-proof” paper used to package his products. Thereafter, he and other company employees began selling “package seller agreements” in Gallatin County. The buyers of these contracts paid from $500 to $5000 to become package sealers for Smart Pak. The company supplied them with manual sealing machines and rolls of package paper depending on the amount paid by the seller. After the sealers sealed the bags on three sides, they sold all properly sealed bags back to the company for 5 cents per bag.
The operation worked smoothly for a short time, but then, due to a series of mix-ups, the sealers did not receive their quota of bags to be sealed. These mix-ups, as asserted by defendant, included a paper shortage and errors in printing the bags.
In March 1976 Smart Pak came under investigation by both Federal Securities Exchange Commission and the State Auditor’s Office in which securities sold in Montana are to be registered. At the point, the focus of these investigations concerned only whether the package sealer agreements were in fact investment contracts which defendant had failed to register.
Although neither agency told defendant to cease operations beyond ceasing to advertise and sell the questioned package sealer agreements, defendant did in fact close down his entire operation and refused to accept or pay for any sealed bags from the sealers or to send any more bags to be sealed. The reason defendant gave for his action was that the adverse publicity concerning the investigations had dried up the sales of these products.
In June 1976 defendant filed a receivership petition for Smart Pak. The sealers were thus left holding the “bags.” After the initial few months, they did not receive payment for their work or recoupment of their investment.
On July 9, 1976, the State filed an information against defendant. The information consisted of four counts: Count I charged deceptive practices in violation of section 94-6-307, R.C.M.1947, now section 45-6-317 MCA; Count II charged fraudulent securities practices in violation of section 15-2005(1), R.C.M.1947, now section 30-10-301 MCA; Count III charged failure to register securities violation of section 15-2007, R.C.M.1947, now section 30-10-202 MCA; and Count IV charged issuing a bad check in violation of section 94-6-309(1), R.C.M.1947, now section 45-6-316 MCA. Defendant filed a motion to dimiss the information. On February 22, 1977, the court dismissed Count IV and defendant pleaded “not guilty” to the remaining three counts. On that same day, defendant signed a written waiver of his right to trial by jury.
The case then came on for a hearing, on February 23, 1977, to the court sitting without a jury. On April 4, 1977, the District Court, in open court, found defendant guilty of Counts I and III. The court dismissed Count II. On May 6, 1977, the court entered written findings of fact and imposed sentence of five years imprisonment on Count I and three years imprisonment on Count III, the sentences to run concurrently. Defendant, thereafter, brings this appeal.
Additional facts are discussed as they become pertinent.
The issues presented for our consideration are:
1. Whether the evidence is sufficient to sustain defendant’s conviction of deceptive practices?
2. Whether the Smart Pak Sealer Agreements are “securities” within the meaning of section 15-2007 to sustain defendant’s conviction of failing to register such “securities”?
3. Whether defendant voluntarily, knowingly and intelligently waived his right to a jury trial?
4. Whether alleged references to defendant’s-bankruptcy proceedings in his criminal trial constitutes grounds for reversal of his convictions?
5. Whether defendant was properly charged and convicted of deceptive practices?
6. Whether the failure of the District Court to state in its findings that defendant had been proven guilty beyond a reasonable doubt or that he purposely and knowingly committed deceptive practices is sufficient grounds for reversal?
Before proceeding to a discussion of the enumerated issues, this Court must dispose of a preliminary issue raised by defendant concerning the proper scope of review of a criminal bench trial. Defendant urges us to apply a broader standard of review than that normally applied in criminal appeals from jury trials.
We set forth the proper standard of review in criminal bench trials in State v. Longacre (1975), 168 Mont. 311, 313, 542 P.2d 1221, 1222:
“It is the function of the trier of the facts, in this case the trial judge, to determine the credibility of the witnesses and the weight to be given their testimony and he may pick and choose which of the witnesses are to be believed from a consideration of all the evidence. State v. Medicine Bull, Jr., 152 Mont. 34, 445 P.2d 916. On appeal we simply determine if there is substantial evidence to support the defendant’s guilt beyond a reasonable doubt. State v. Stoddard, 147 Mont. 402, 412 P.2d 827; State v. White, 146 Mont. 226, 405 P.2d 761.”
Thus the substantial evidence” test applies to appeals from both judge and jury convictions. Therefore, in determining whether there is substantial evidence to support the verdict entered by the trial court, this Court will examine the evidence in the light most favorable to the State. State v. Pascgo (1977), 173 Mont. 121, 566 P.2d 802, 805; State v. Stoddard (1966), 147 Mont. 402, 408, 412 P.2d 827, 831.
The determination of the proper standard of review relates most directly to defendant’s first issue on appeal wherein he challenges the sufficiency of evidence to sustain his conviction of deceptive practices. We find sufficient evidence and therefore affirm his conviction on this count.
Defendant was convicted of violating section 94-6-307, R.C.M.1947, now section 45-6-317 MCA. This Court has not construed this statute since its enactment in 1973. Defendant would have us apply the same elements to this statute as we found in its predecessor, “Obtaining money, property or services by false pretenses”, section 94-1805, R.C.M. 1947. Under the former statute, we held it was necessary to prove four elements for a conviction:
“. . . (1) The making by the accused to the person injured, of one or more representations of past events or existing facts; (2) that such injured party believed such representations to be true and, relying thereon, parted with money or property, which was received by the accused; (3) that such representations were false; and(4) were made knowingly and designedly, with the intent to defraud such other person.” State v. Bartton (1919), 56 Mont. 563, 566, 186 P. 327, 328.
The new statute clearly modifies the elements of proof necessary for conviction and for that reason that cases cited by defendant are inapplicable. Breaking the new statute down into its elements, we determine the State need prove only that:
(1) the defendant acted “purposely or knowingly” in
(2) making or directing another to make a false or deceptive statement
(3) addressed to the public or any person
(4) for the purpose of promoting or procuring the sale of property or service.
Gone are any requirements that the statements relate to past events or existing facts or that the injured party relied thereon in parting with money or property. In addition, “[s]ection 94-6-307 is designed to cover a greater variety of deceptive practices than were formerly proscribed by Montana law.” Commission Comment, section 94-6-307, R.C.M. 1947. The legislative intent to expand the spectrum of criminal activities in the area of false pretenses previously punishable under Montana law is obvious. It is against these guidelines that we measure defendant’s actions.
Initially we note that no real challenge is made by defendant to elements 1, 3, and 4 listed above. Defendant concedes he deliberately sought people to enter into these contracts at specified costs (elements 1 and 4) and that in so doing he caused to be broadcast and published various advertisements asking people to contact him or his employees (element 3). The only question concerns whether his statements to potential sealers were false or deceptive.
The State in its information alleged that defendant or defendant’s employees acting at his direction repeatedly made five false statements with the purpose to induce persons to énter into the package sealer contracts at a cost of between $500 and $5000. Proof beyond a reasonable doubt of any one of these five false statements is sufficient to sustain defendant’s conviction.
The State alleged that in the package sealer contract itself defendant promised that 5 percent of each sealer’s deposit was “to be held in trust for the purpose of guaranteeing repayment of deposit made by Package Sealer at the execution of this Agreement.” The contract further stated that the trust fund was to be established at a specified bank in Bozeman.
The evidence presented at trial showed, however, that defendant made only nominal deposits to an escrow, not trust, account until the day before his meeting on March 30, 1976, with State and federal officials concerning possible securities registration violations. At this time, he suddenly deposited $15,000 to this account on advice of counsel. Thereafter, defendant withdrew virtually the entire amount between April 26 and May 6, 1976. Clearly, defendant had no intention of honoring his contractual promise regarding the 5 percent trust reserve.
The other allegations by the State were also supported by sufficient evidence. For example defendant told or implied by means of a prominent wall chart to those persons entering contracts that only 55 such contracts would be sold in the Bozeman area. In fact, 82 contracts were sold in Bozeman and approximately 275 were sold throughout Montana.
Defendant guaranteed each sealer a set quota of bags and a regular income depending on the amount of deposit. Yet as early as January 1976 many sealers were receiving less than their guaranteed quota of bags. Later the coporation office refused to accept or pay for sealed bags from the sealers. Indeed, as defendant himself testified, he needed monthly income of approximately $360,000 to buy the unsealed bags from the supplier and to pay his sealers for sealing them, without taking into account any other expenses or profits. When this figure is compared to the actual monthly income from sales of the products of $2,700, one is compelled to conclude that defendant knew his contractual promises would fail at the time they were made.
As a final example, defendant repeatedly represented that he had secured large contracts for the purchase of his products with Safeway Stores and the Coleman Company, among others. In fact, Safeway had agreed to only a trial contract and the Coleman Company formally demanded that defendant cease misrepresenting the existence of any contracts between them.
In sum defendant sold $417,000 worth of package sealer contracts on behalf of his company which had capital stock of only $3,100 and total incojne from product sales of only $13,500 over five months. The financial obligation under these contracts exceeded $500,000 per month. The inescapable conclusion is that defendant deliberately made false statements to induce others to enter these contracts. His conviction on this count is affirmed.
Defendant’s second issue on appeal concerns his conviction of sale of unregistered securities. Defendant was charged and convicted of violating sections 15-2007 and 15-2021 of the Securities Act of Montana, now section 30-10-202 and 30-10-306 MCA. The security which defendant allegedly sold was the package-sealer contract. The trial court found that the contracts were investment contracts under Montana law and therefore subject to registration requirements. We affirm.
Montana has adopted the Uniform Securities Act, see Note, section 15-2001, R.C.M. 1947, now section 2-15-1901 MCA, which in turn relies for its definition of “security” on the Federal Securities Act. Section 401 (1), Uniform Securities Act, Commissioner’s Note, 7A U.L.A. 631 (1978). As Montana has had no cases construing this statute, both federal cases and cases from other states adopting the Uniform Act are helpful in the determination of what is a “security.”
The leading case for determining the existence of an investment contract security is S.E.C. v. W.J. Howey Co. (1946), 328 U.S. 293, 66 S.Ct. 1100, 90 L.Ed. 1244, in which the United States Supreme Court was concerned with the nature of an investment contract under the Securities Act of 1933, 15 U.S.C. § 77b(l) (1970). In that case, the Supreme Court stated:
“In other words, an investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party . . 328 U.S. at 298-99, 66 S.Ct. at 1103, 90 L.Ed. at 1249.
Thus, the Supreme Court established three criteria to the determination of an investment contract security: an investment, a common enterprise, and the expectation of profits solely from the efforts of others.
Defendant’s sealer agreements clearly meet the first two criteria. The sealers, were required to invest (deposit) a certain amount of money upon signing the contracts. Although according to the terms of the contract, the sealers were to be paid regardless of sales, in actual fact, as defendant conceded at trial, without any sales of the product the sealers would not be paid. Thus, the income to the sealers depended upon the common enterprise selling the final product.
The third Howey requirement of expectation of profits solely from the efforts of others is not so easily met. It is undeniable that the sealers performed some function in the corporate enterprise, that of sealing three sides of the bags in their homes. It is also undeniable that the profits realized by the sealers depended in part upon the number of bags each sealed. The number of bags each was entitled to receive for sealing depended, however, exclusively upon the amount of their original deposit or investment. Further, the sealers had no voice or part in the actual sale of the final product. To the extent any profit from such sales inured to the corporation and then to the sealers, it resulted solely from the efforts of others. Thus, while.it cannot be said that each sealer’s expectation of profits depended solely on the efforts of others, to a large extent this was the case.
In any event, the rigid “solely” requirement of Howey has come under criticism as being inconsistent with the remedial goals of the Securities Act. As stated in Howey itself, the Securities Act:
“. . . embodies a flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.” 328 U.S. at 299, 66 S.Ct. at 1103, 90 L.Ed. at 1250.
In 1971 the S.E.C. issued an interpretation of the Securities Act which is particularly applicable to the current situation:
“It must be emphasized that the assignment of nominal or limited responsibilities to the participant does not negative the existence of an investment contract . . .” S.E.C. Securitites Act Release No. 5211 (Nov. 30, 1971).
Accord, S.E.C. v. Glenn W. Turner Enterprises, Inc. (9th Cir. 1973), 474 F.2d 476, 482, cert. denied 414 U.S. 821, 94 S.Ct. 117, 38 L.Ed.2d 53; S.E.C. v. Koscott Interplanetary, Inc. (5th Cir. 1974) , 497 F.2d 473, 480-81. In its discussion of the Howey test, the Fifth Circuit Court stated:
“[I]t is apparent that neither Congress, in fashioning a definition of an investment contract nor the Court in interpolating this definition, could have relied upon crystallized authority endorsing a litmus formula. This observation militates - against the conclusion that the test was intended to exclude from the definition of investment contract, any scheme where an investor contributed a nominal menial effort.” 497 F.2d at 480-81. (Emphasis added.)
The United States Supreme Court, apparently realizing that its earlier pronouncement may have been too rigid, refined the Howey test in United Housing Foundation, Inc. v. Forman (1975), 421 U.S. 837, 95 S.Ct. 2051, 44 L.Ed.2d 621:
“The touchstone [of an investment contract] is the presence of an investment in a common venture premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.” 421 U.S. at 852, 95 S.Ct. at 2060, 44 L.Ed.2d at 632. (Emphasis added.)
This language effectively deletes the strict “solely” requirement from the test.
Under the Forman test, the sealer contracts, with their promise of profits to come from the entrepreneurial efforts of defendant and his employees, are clearly classifiable as investment contract securities and therefore subject to the security regulation statutes. The remedial purposes for which securities laws have been enacted require the adoption of this broad, flexible definition of “security”.
While there are other tests for investment contract securities (e.g., “risk capital” test as applied in Silver Hills Country Club v. Sobieski (1961), 55 Cal.2d 811, 13 Cal. Rptr. 186, 361 P.2d 906), the Forman test quoted above is favored by the United States Supreme Court and many other state courts, and we adopt it for use in Montana.
Defendant argues that the application of this broadened definition of “security” to him is unconstitutional in that to do so is similar to the operation of an ex post facto law. We disagree.
As explained above, the definition we have adopted has essentially been used by the United States Supreme Court since 1946, Howey, supra, and has been adopted in several other jurisdictions. See e.g., Annot. 3 A.L.R.Fed. 592; Searsy v. Commercial Trading Corp. (Tex. 1977), 560 S.W.2d 637, 641; Raymond Lee Organization, Inc. v. Division of Securities (Colo. 1976), 556 P.2d 1209, 1211-12; Pratt v. Kross (1976), 276 Or. 483, 555 P.2d 765, 773. In fact, the definition was used in one federal case involving a Montana feedlot and bank. Hector v. Wiens (9th Cir. 1976), 533 F.2d 429, 433. As noted earlier, the Securities Act of Montana is a Uniform State Law and is traceable to the federal law. When as many jurisdictions have ruled on this matter as have prior to this case, defendant, who operates in several states, had clearly been placed on notice.
As we have stated, the Securities Act was enacted for remedial purposes and for that reason should be broadly construed. In State v. Russell (1972), 119 N.J.Super. 344, 291 A.2d 583, 587, the court stated:
“The public sale of corporate securities is a sensitive, highly and peculiarly specialized field of activity to which the investing public is exposed and one in which the public is generally not well versed. The potential for serious financial injury to the buying public mandates that all sellers of securities be charged with knowledge of and compliance with all rules and regulations governing such sales.”
Our adoption of the broadened definition is in line with the vast weight of authority across the country. Duncan cannot avoid liability on the grounds that our decision is an unprecedented, unforeseeable expansion of a statutory term.
In other states, a newly broadened definition of “security” has been applied to the defendant in a criminal trial without offending the constitutional prohibition against ex post facto laws. E. g., People v. Blair (Colo.1978), 579 P.2d 1133; State v. Hodge (1969), 204 Kan. 98, 460 P.2d 596. We conclude that the application of this broadened definition of “security”' to defendant is not an unconstitutional application of an ex post facto law.
The remaining issues raised by defendant may be answered briefly-
On the morning of trial, defendant moved orally for a waiver of jury trial and shortly thereafter executed a written waiver. Having decided to risk a bench trial, defendant now seeks to avoid the result of his decision by claiming that his waiver was not voluntary, intelligent or knowing.
Montana’s statutes require only that written consent of the parties be entered to waive a jury trial. Section 95-1901(d), R.C.M.1947, now section 46-16-102 MCA. This statute was followed. We see no reason under these facts where defendant was represented throughout by competent counsel to impose additional requirements in this area. See State v. McCartney (1978), 179 Mont. 49, 585 P.2d 1321, 1325, (failure to execute a written waiver of jury trial did not render judge trial void). Defendant’s waiver of jury trial is valid.
Defendant next complains that the references during the trial to his pending bankruptcy violated Section 7(a)(10) of the Federal Bankruptcy Act which prohibits the use of testimony given in bankruptcy proceedings in subsequent criminal trials. 11 U.S.C. § 25 (a)(10). While it is true that there were references during the trial to the pending bankruptcy procedings by defendant’s we fail to see any prejudice to defendant’s substantial rights resulting therefrom. None of the State’s case hinged on any testimony or any evidence derived from the testimony given by defendant at the first meeting of the creditors. From the transcript it is clear that the State did not solicit any testimony regarding the bankruptcy proceedings. Only after defendant himself had broached this subject in his case-in-chief did the State choose to cross-examine on this testimony. Indeed, throughout the trial, it was defendant who continually mentioned the bankruptcy. In such a case any claim of prejudice is unfounded.
Next defendant argues that he should have been charged under section 15-2005, R.C.M.1947, the specific fraudulent securities practices statute, rather than section 94-6-307, the general deceptive practices statute.
While it is true that in civil cases that a more specific statute controls over an inconsistent general statute, “[t]his Court has previously declined to apply this rule of statutory construction to criminal prosecutions where defendant’s conduct violated” two or more criminal statutes. State v. Moore (1977), 174 Mont. 292, 570 P.2d 580, 583. As this Court stated in State v. Lagerquist (1968), 152 Mont. 21, 30-31, 445 P.2d 910, 915:
“The fact that the legislature provides a course of action by more than one statute allows the state to choose either applicable law . . . ‘The fact that there is an area in which two statutes overlap and prohibit the same act, as in this case, does not mean that the defendant can only be prosecuted under the statute providing for the lesser penalty.’
“It is a cardinal principle of construction that repeals by implication are not favored. When there are two acts upon the same subject the rule is to give effect to both if possible. The intention of the legislature to repeal must be clear and manifest. Reading the statutes in question here we find no such intention on the part of the legislature.” (Citation omitted.)
We have held that defendant’s acts violated the deceptive practices statute, section 94-6-307. The charge against him that these acts also violated the fraudulent securities practices statute, section 15-2005, was dismissed by the District Court. Cf. State v. Davis (1978), 176 Mont. 196, 577 P.2d 375, (both defendants convicted on both felony charges arising from same act). Under these circumstances, the defendant was properly charged and convicted.
The last issue presented by defendant for review concerns the failure of'the District Court to make specific findings that defendant acted “purposely or knowingly” or that the findings were made based upon proof beyond a reasonable doubt.
Defendant has cited no authority in support of his argument, and we can find none. A district judge in a criminal bench trial is under no statutory duty to make the findings requested by defendant. Cf. section 95-2206.11, R.C.M.1947, now section 46-18-306 MCA (requiring written findings of fact in cases involving the imposition of the death penalty). In the case at bar, the district judge was merely obliged to enter a general verdict of innocence or guilt. The issue is without merit.
The judgment of the District Court convicting defendant of deceptive practices and of selling unregistered securities is affirmed.
MR. CHIEF JUSTICE HASWELL, and JUSTICES HARRISON, concur,
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DECISION
The application of the above-named defendant for a review of the sentence of ten years, imposed on November 20,_ 1967, 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 robbery punishable by not less than 1 year imprisonment with no limit, yet received a sentence of but 10 years and will be eligible for parole consideration in July, 1969, after being received November 20th, 1967, although he has a record of 1 prior first degree burglary conviction for which he first received a suspended sentence thereafter revoked for probation violation. We thank Claude J. Gerbase, Jr., Esq., of the University Defenders for his assistance to the defendant.
SENTENCE REVIEW DIVISION
Philip C. Duncan, chairman; Paul G. Hatfield, Jack D. Shanstrom.
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MR. JUSTICE ANGSTMAN
delivered the Opinion of the Court.
Relator seeks an appropriate writ to vacate and annul an order of the district court granting the several separate motions of defendants in the action in which summons was issued to quash service of summons. The action out of which summons issued was one for damages for injuries sustained by relator as a result of the overturning of a water truck driven by Eddie Wolfe.
Relator’s complaint was filed against Boggess Construction Company, a corporation, resident of Iowa; M & W Construction Company, a partnership, resident of Minnesota; J. F. England & Sons, Inc. resident of South Dakota; Mike Eichenlaub, a resident of South Dakota, and Chet Lundgren, whose residence is not shown, and who was foreman for Boggess Construction Company; Mohr, relator, is a resident of Iowa.
The complaint is not before us but the separate motions to quash and the affidavits and objections filed and proceedings had in relation to the motions to quash show the facts which we have before us. Two questions were raised by the several motions to quash. One question was whether Eddie Wolfe, the driver of the water truck involved in the accident was acting as the agent, servant or employee of any of the defendants.
The second question raised is whether the accident occurred on a public way within the meaning of Section 53-203.
The trial court did not rule on the first question. It ruled specifically that the accident did not occur on a public way.
The truck in question overturned on what is called a haul-road leading from highway construction Project S 187, which was a project on what is known as the Harlem-Hayes road. The haul-road extended from the construction project to a gravel pit from which gravel was obtained for use on the project. The accident happened about one and one-half miles from the highway construction project area. The water truck was used to control the dust by watering down the haul-road. The haul-road was constructed over open .range, Indian land and was for a temporary purpose with the understanding that the land should be restored to its natural condition after completion of the hauling operations. There were fourteen trucks engaged in hauling gravel over the haul-road and highway employees also used the road for inspection purposes. There were no signs excluding the public from the haul-road and there were no gates or guards preventing entrance by members of the public. Mohr used his private automobile on the haul-road as did salesmen or others desiring to view the project.
The service of summons was made under section 53-203 by service upon the secretary of state. That statute authorizes service of summons on a non-resident operator of a motor vehicle by service on the secretary of state in cases “growing out of an accident or collision in which he or his agent may be involved while operating a motor vehicle on any public way in this state.” This statute must be construed liberally with a view to effect its objects and to promote justice. State ex rel. Gallagher v. District Court, 112 Mont. 253, 114 P.2d 1047.
“A word or phrase may have different meanings as it is employed in different connections * * * and the particular meaning to be attached to it in a given statute or constitutional provision is to be measured and controlled by the connection in which it is employed, the evident purpose of the act, and the subject to which it relates.” Thaanum v. Bynum Irr. Dist., 72 Mont. 221, 232 P. 528, 530.
Thus, an irrigation district has been held to be a subdivision of the state within the meaning of a certain section of the statute, Crow Creek Irr. Dist. v. Crittenden, 71 Mont. 66, 227 P. 63, and yet not a subdivision of the state within the meaning of a constitutional provision. Thaanum v. Bynum Irr. Dist., supra.
So here, under a liberal construction of the statute, it is not necessary that the haul-road meet the definition contained in section 32-103 as applied in Peasley v. Trosper, 103 Mont. 401, 64 P.2d 109, and other cases of similar import.
It is our view that under a liberal construction of the statute the haul-road, in question here, so long as it was used as a haul-road constituted a necessary and integral part of the Montana highway system.
The case to all intents and purposes is analogous to that of Schefke v. Superior Court, 136 Cal.App.2d 715, 720, 289 P.2d 542, 546, where it was held that an automobile is being operated upon the highways within the meaning of a statute such as ours when it is being serviced at a filling station. The court recognized and referred to eases taking a contrary view, but expressed itself as follows:
“It seems to us, however, that the question here does not depend upon an interpretation of what is or is not a highway, but is a question of whether or not the servicing of a motor vehicle in a service station enroute is such a necessary incident to its operation that the entry into or exit from a service station must be considered as a part of and incidental to the operation of the vehicle upon the highways.
“* * * The act of getting gasoline and service at a service station, enroute is as completely a part of the operation of the car as almost any other act in its operation. It certainly is as incidental,' if not as integral, a part of its operation as was parking the car opposite the hotel in Stroud v. Board of Water Commrs., supra, [90 Conn. 412] 97 A. 336, even though that parking was on the highway itself.”
It would not be a liberal construction of the statute to hold that service could be had on the secretary of state had the accident occurred while the vehicle was enroute to the haul-road, but that service could not be had if it occurred on the haul-road which was used in conjunction with and as a part of the construction project.
In McDonald v. Superior Court, 43 Cal.2d 621, 275 P.2d 464, it' was held that service may be had under a statute similar to ours when the accident occurs while unloading a truck, since that act was a part of the normal use of the truck in its operation on the highways.
Likewise, whether a highway is a public way is ‘‘not determined '* * * by the number of persons who actually use it for passage; if it is open, it is immaterial that but few individuals are in a position to make use of it, or that one person is most benefited by it; and its character as a highway is not affected even by the fact that it furnishes access or egress to but a single property owner.” 39 C.J.S. Highways § 1, pp. 915-916. And see Galloway v. Wyatt Metal & Boiler Works, 189 La. 837, 181 So. 187.
Construing section 53-203 liberally, as we must, it is our view that the haul-road in question here was a public way within the meaning of that section, when it was being used in conjunction with the highway construction project, and that the service of process was authorized under that section if the requisite agency existed. Whether an agency existed is a question for the trial court to determine. State ex rel. Gallagher v. District Court, supra.
Since the trial judge did not rule on the question of agency, it is our view that the cause should be remanded with directions to find on that issue and to sustain the service of summons on such defendant or defendants, if any, as the court may find employed the driver of thé truck, Eddie Wolfe as its or their agent.
It is so ordered.
MR. JUSTICE ADAIR concurs.
MR. JUSTICE BOTTOMLY not participating.
|
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MR. JUSTICE DOYLE
delivered the Opinion of the Court.
This is an action to recover on a written contract wherein plaintiff seeks to recover the sum of $1,850 together with interest, attorneys’ fees and costs.
On May 16, 1959, defendants are alleged to have entered into a contract in writing, by the terms of which the defendants agreed to pay to the plaintiff the sum of $1,850 for contacting buyers by advertising in certain of the plaintiff’s publications. The representative of the plaintiff was apparently not a resident of Montana, neither did he maintain an office within the state. The agreement shows acceptance by the plaintiff at Seattle, Washington, on May 18, 1959, but the record does not reveal nor was it alleged that such acceptance was communicated to the defendants.
The bare essentials of the disputed contract provide that the plaintiff agrees to advertise the sales information on the business of the defendants which was the Island Resort Motel at Livingston, Montana, and that the advertising would appear in the Union Interchange Brokers Bulletin. The agreement further provided that defendants would pay to the plaintiff $1,850 at Seattle, Washington, three months from the date of the acceptance of the advertising agreement, and further provided that if the defendants sold the Motel prior to the three-months period that the sum of $1,850 would immediately become due and payable and further provided that in the event of legal action for collection, defendants agreed to pay a reasonable attorney’s fee and court costs and that venue of any such action would be in King County, Washington.
The fourth paragraph of Exhibit 3-B provides:
“You are privileged to sell your business or property yourself or through any broker you choose because the Union Interchange, Inc., is not, and does not act as a broker. We do not enter into any commission arrangements between you and brokers. We are engaged in the advertising for sale of businesses and properties. We cannot, of course, guarantee a sale. You may cancel this agreement at any time by written notice; however, you are still under obligation to pay the charge specified on Page 1.” Emphasis supplied.
The complaint in this ease recites that the Union Interchange, Inc., is the plaintiff. Paragraph I states:
“That at all times herein mentioned, plaintiff was and now is a corporation duly organized and existing under law. ’ ’
The complaint is silent as to where the plaintiff is incorporated or where its principal place of business is located.
There is no mention made of interstate commerce being involved nor is there any constitutional question presented by the express pleadings of the complaint, being simply a complaint charging the breach of the written contract and asking $1,850 and $450 attorney’s fees. This complaint was filed on December 13, 1960, at Livingston, Park County, Montana.
On January 23, 1961, the defendants filed a general and special demurrer, reciting in paragraph I that the ‘ ‘ complaint does not state facts sufficient to constitute a cause of action against said defendants.”
In paragraph II of the demurrer, it is stated that “the plaintiff has not the legal capacity to sue” in that “plaintiff was and is acting in the capacity of real estate broker in the State of Montana as the same is defined by the provisions of section 66-1903, R.C.M., as amended by Chapter 129, Laws of Montana, 1957; that the alleged contract referred to in the complaint and which is the basis of this action was * * * made by the plaintiff acting in the capacity of such real estate broker; that the complaint of plaintiff seeks to recover compensation for its services alleged to have been earned as a real estate broker, defined in section 66-1903, as amended; that plaintiff has not alleged in its complaint that plaintiff was duly licensed as a real estate broker under the provisions of Chapter 19 of Title 66, §§ 66-1901 to 66-1923, R.C.M.1947, as amended.”
On March 30, 1961, the Honorable George J. Allen, District Judge of the Sixth Judicial District in and for the County of Park, sustained the general and special demurrer of the defendants.
On June 20, 1961, the plaintiff having failed to amend its complaint, a judgment was made and entered, sustaining the demurrer of the defendants and assessing costs taxed against the plaintiff in the amount of $2.50.
On July 12, 1961, attorneys for the plaintiff filed their notice of appeal in this action.
The plaintiff cites three specifications of error, the first being that the court erred in holding that the plaintiff was a real estate broker within the definition as set forth in section 66-1903, Ki.C.M.1947, as amended.
The second specification of error is that the 1957 amendment to section 66-1903 was unconstitutional in that it was an unlawful restraint of interstate commerce.
The third specification of error was that the court erred in refusing to hold that the plaintiff’s business was solely for the sale of advertising in its publications.
Plaintiff in oral argument abandoned the first specification of error if this court found the amended section 66-1903 constitutional. The same situation would prevail on the third specification of error.
For sake of clarification it might be appropriate at this juncture to recite the exact language of the 1957 amendment (Chapter 129) to section 66-1903.
“A ‘real estate broker,’ within the meaning of this act, is a person who for a compensation, or promise thereof, sells or offers for sale, buys or offers to buy, lists or solicits for prospective purchasers, receives or demands an advance fee, negotiates, or offers to negotiate, either directly or indirectly, whether as the employee of another or otherwise, the purchase, sale, exchange of real estate, or any interest therein, for others, as a whole or partial vocation. The word ‘person’ as used in this act, shall be construed to mean and include a corporation. The term ‘advance fee’ as used in this act is a fee contracted for, claimed, demanded, charged, received or collected for a listing, advertisement or offer to sell or lease property in a publication issued primarily for the purpose of promoting the sale or lease of business opportunities or real estate or for referral to real estate brokers or salesmen, other than a newspaper of general circulation, prior to the printing thereof. The provisions of this act shall not apply to any person who purchases property for his own use or account, nor to any person, who, being the owner of property, sells, exchanges, or otherwise disposes of the same for his own account, nor to any person holding a duly executed power of attorney written in a separate instrument designated as such, from the owner granting power to consúmate the sale, exchange or leasing of real estate, nor to the services rendered by an attorney at law for or on behalf of his client, nor to any receiver, trustee in bankruptcy, guardian, administrator, or executor, nor to any person acting under the order of the court, nor to any person selling under a deed of trust.” Adverting to the second specification of error this exact
situation is presented to this court.
Plaintiff pleads facts which show that it is required to be licensed under the above-quoted statute and fails to allege that it is so licensed. Defendants demur on this ground.
Plaintiff refuses to amend or further plead, and for the first time, on this appeal, plaintiff asserts that the statute is unconstitutional because of a fact situation not pleaded.
How is this court to speculate on those facts? Plaintiff asserts that the statute (section 66-1903) interferes with interstate commerce. In what way?
What business is plaintiff in, under what state or federal law? How is it under the protection of the interstate commerce clause ?
To answer the foregoing questions we would of necessity be obliged to resort to speculation and conjecture or take plaintiff’s statement on appeal as facts.
The pertinent point is that the pleading (complaint) does not allege sufficient facts to present any constitutional question to the court.
In State ex rel. Toomey, v. State Board of Examiners, 74 Mont. 1, 14, 238 P. 316, 322, this court observed: “It is elemental that the pleader must allege all facts material to his cause of action directly, in ordinary and concise language, and with reasonable certainty. And, where a seasonable attack is made upon the complaint for want of substantive allegations, the court should indulge, as against the pleader, the presumption that he has stated his cause of action as strongly as he can.” In State v. Lutey Bros., 55 Mont. 545, 554, 179 P. 457, 459, this court commented on a suggested constitutional question improperly raised in the following language: “From the views expressed, it becomes apparent that the questions respecting the application of constitutional guaranties are merely hypothetical; and we decline to anticipate a proposition so momentous until a case is presented in which the precise facts are involved.”
In 11 Am.Jur., Constitutional Law, § 125, p. 772, the general rule is stated:
“A person whose rights are invaded by an act of the legislature or of an administrative board must raise the objection at the earliest available opportunity and exhaust the remedies which may have been provided for the correction of unreasonable and improper orders, before he will be permitted to make an attack in the courts on the constitutionality of the statute. The failure to raise an opportune objection to an order of the court amounting to an invasion of a constitutional right may amount to a waiver of this right.”
In 16 C. J. S. Constitutional Law § 97, p. 347, the rule again is stated: “A court, however, will not anticipate prospective conditions which may never arise, in order to declare a law unconstitutional; and a statute is not to be upset on hypothetical and unreal possibilities if it is valid according to the facts as they exist.”
A statute will be presumed constitutional unless the contrary is made to appear beyond a reasonable doubt, so said this court in State ex rel. Powell v. State Bank of Moore, 90 Mont. 539, 549, 4 P.2d 717, 80 A.L.R. 1494, citing State ex rel. Pierce v. Gowdy, 62 Mont. 119, 203 P. 1115; State ex rel. Bankers’ Trust Co. v. Walker, 70 Mont. 484, 226 P. 894.
In the Moore case, supra, at 550 of 90 Mont., at 719 of 4 P.2d, this court said: “Where it is contended that an act invades constitutional rights, a person affected should raise the-question of the invalidity of the act at the earliest opportunity,, and failing to do so may constitute a waiver of the right.”
Conversely, there is no valid reason why a court, if it. has jurisdiction of a constitutional question, should refuse to do so merely because of discretion. The constitutionality of a statute need not be pleaded with any greater certainty than other issues; the determination whether the issue is properly presented is to be made by construing the pleadings according to accepted methods.
Where, as here, there was no allegation of any kind reciting that the validity of the statute is directly and necessarily involved in the controversy as a matter of law, there can be no determination of plaintiff’s contention.
In In re Clark’s Estate, 105 Mont. 401, 410, 74 P.2d 401, 405, 114 A.L.R. 496, this court stated:
“Courts have adopted many rules, the observance of which enables them to refrain from passing upon the delicate question of the constitutionality of acts of law-making bodies. The delicacy of these questions, where one of the three co-ordinate departments of the government is called upon to annul the acts of another, justifies the attitude of the courts in declining, wherever possible, to pass upon the decision of constitutional questions. * * *
“If an act of the Legislature is repugnant to the Constitution, the courts have the power, and it is their duty so to declare.”
There is a further fatal defect in plaintiff’s complaint. The third paragraph alleges that the defendants executed a written contract with the plaintiff and attaches by reference .a copy of the contract, as Exhibit A.
The next paragraph of the complaint alleges that plaintiff performed all of the terms of the contract.
The last paragraph of Exhibit A attached to the complaint ■contains this printed statement: ‘ ‘ This agreement shall become effective only when accepted by your office in Seattle, Washington, and you [the plaintiff] shall notify me [the defend-ants] of such acceptance by letter.”
The complaint is silent as to whether the plaintiff ever ac lmowledged the acceptance of the agreement by a letter in writing to that effect.
R.C.M.1947, § 13-720, provides that “In eases of uncertainty * * * the language of a contract should be interpreted most strongly against the party who caused the uncertainty to exist. ’ ’ Two cases decided by this court on this question are Hart v. Barron, 122 Mont. 350, 204 P.2d 797, and Voyta v. Clonts, 134 Mont. 156, 328 P.2d 655.
Added to the failure to notify the defendants of plaintiff’s acceptance of the contract is the rule of law in Johnson v. Elliot, 123 Mont. 597, 604, 218 P.2d 703, 706, wherein this court held that “To state a cause of action ex contractu the complaint must disclose a valid agreement, a right in the plaintiff and a breach by the defendant.” This the plaintiff failed to do.
By reason of the manifest deficiencies in the complaint the judgment is affirmed.
MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES ADAIR, CASTLES and JOHN C. HARRISON concur.
|
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MR. JUSTICE SHEA
delivered the opinion of the Court.
Defendant Kevin J. Sayers appeals a Ravalli County District Court judgment finding him guilty of possession of dangerous drugs (marijuana). The appeal concerns only the issue of whether the trial court should have granted a motion to suppress the use at trial of live marijuana plants, dried marijuana, and paraphernalia. We affirm.
On three grounds, two of which involve claims of an invasion of his right to privacy, he claims that entry and search of his apartment by his landlord was illegal. First, he claims there were no exigent circumstances justifying the landlords’ entry and that he did not consent, expressly or impliedly, to that entry. Second, he claims that the landlords’ observation of marijuana plants in his closet was not inadvertent and therefore constituted a search. And third, he claims that a search warrant issued after the landlords’ entry was not supported by reliable allegations on the part of the landlords.
We hold that under the terms of the lease the landlords had a right to enter the apartment to retrieve their vacuum cleaner. Second, we hold that the landlords’ observations were inadvertent and did not constitute a search. Third, we hold that the search warrant, issued not only on the statements of the landlords, but also on the allegations of the police officer called into the apartment by the landlords to observe the evidence, was based on reliable evidence.
The defendant was a high school senior who was renting an apartment in Hamilton. In the middle of February 1981, he notified his landlords, Lyle and Ruby Williamson, that he was going to move out of this apartment at the end of the month. At that time, he gave the Williamsons oral permission to show his apartment to prospective renters. Further, the written rental agreement between the defendant and the Williamsons provided:
“The owner . . . reserves the right to enter the unit at all reasonable times, and reserves the right to show the unit to other prospective tenants after notice has been given.”
On approximately February 26, the defendant borrowed the Williamsons’ vacuum cleaner kept in a hall closet and available for tenant use. On February 28, Mr. Williamson could not locate the vacuum cleaner, but learned from his wife that the defendant had last used it. When there was no answer at the defendant’s door, the Williamsons entered the apartment and immediately observed their vacuum cleaner in the middle of the living room. Mr. Williamson walked into the room to get the vacuum cleaner, and Mrs. Williamson went to leave a note on the defendant’s kitchen table. Mr. Williamson testified that he then noticed a bright light on the floor of a closet, and was concerned that a lamp had fallen over and might start a fire. He testified that he “ . . . glanced over and the door was open to the closet and the [marijuana] plants were in the closet”. He also testified that he had previously seen pictures of marijuana and some live marijuana plants at City Hall.
A police officer was called to examine the plants and a search warrant was issued based on his observations.
In ruling on the defendant’s motion to suppress, the trial court held that the police officer’s observations could not be used to support the warrant because the defendant did not consent to the officer’s entry. The trial court did hold that the defendant’s continued possession of the vacuum cleaner implied that he had consented to let his landlords enter the apartment to retrieve the vacuum cleaner. The trial court then distinguished State v. Hyem (1981), Mont., 630 P.2d 202, 38 St.Rep. 891, on the basis that here the landlord’s intrusion was consensual and their observation of the marijuana plants were inadvertent. The trial court held that the:
. . defendant could not realistically have had an expectation of privacy when he must be charged to have known that the landlord might reasonably have concluded that he had vacated the apartment, or that the landlord might have shown the apartment to others or come looking for the vacuum cleaner.”
First, we agree with the trial court that defendant consented to the entry of his apartment, but on a broader ground than that on which the trial court ruled. Rather, we hold that the landlords’ entry was justified by the lease provision in which the landlords’ reserved “. . . the right to enter the premises at all reasonable times . . .” Surely, based on this provision, their entry was justified when they did not know whether the defendant had abandoned the premises and taken their vacuum cleaner with him.
Second, we hold that once the landlords had legally entered the apartment, they had a right to peer in the closet eight feet away, even though they had already seen the vacuum cleaner in the middle of the apartment floor. The landlords testified that they noticed light coming from the closet floor and were concerned that a lamp had fallen over and could constitute a fire hazard. An unexpected light coming from a closet would certainly attract anyone’s attention, particularly that of a landlord. To hold that the landlords had no right to peer into this closet because they had no express or implied consent from defendant to do so would be to ignore reality. Defendant does not argue that the landlords expected to find marijuana or were searching for marijuana. The landlords’ observations were made because of the light coming from the closet rather than from their desire to search the closet with the expectation that they would find marijuana.
Third, we hold that the application for a search warrant was legally sufficient. The trial court held that the search warrant was valid even though the police officers’ observations could not be used as a basis for the search warrant; rather, the trial court held that the landlords’ eviden- tiary statements in the affidavit was sufficient to constitute probable cause. Defendant, relying on the trial court’s ruling that the police officer’s observations could not be used to support the application for a search warrant, argues that the landlords’ observations were legally insufficient. But we need not address that contention. We hold that the landlords could, under the circumstances, permit the police officer to observe the items in the closet, and therefore that the police officers’ observations could be used as the basis to issue a search warrant. Defendant does not attach the observations made by the police officer, and those observations clearly demonstrate that he knew what he had seen — marijuana plants, dried marijuana, and paraphernalia.
The order denying the motion to suppress is affirmed and the judgment is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES DALY, WEBER and SHEEHY concur.
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MR. JUSTICE HASWELL
delivered the Opinion of the Court.
In a nonjury trial in the district court of Park County, plaintiffs were awarded damages in the amount of $16,760.82 for losses resulting from the defective operation of electronic accounting equipment supplied by the defendant. Defendant appeals from the judgment. Plaintiffs cross-appeal from the damages awarded.
The issues raised by the defendant on appeal are: 1) Liability for breach of express or implied warranty; 2) Measure of damages; 3) Assessment of costs. Plaintiffs’ cross-appeal concerns only the measure of damages.
Given the complex nature of the facts and issues involved, a detailed consideration of both is required.
Plaintiff Orvis Lovely commenced an accounting practice in Livingston, Montana, in 1953. In 1964 he formed a partnership with the other plaintiff, Donald Laubach. In 1966, the partnership purchased an additional practice in nearby Big Timber, Montana, and maintained an office there. The addition of this practice increased the workload of the partnership to the point where additional help had to be hired or the work had to be automated.
Plaintiffs were approached by David Larsen, as sales representative of the defendant, concerning the use of Burroughs •equipment in their expanded practice. A series of meetings, ■correspondence and demonstrations of available equipment ensued, resulting in a purchase order for a small Burroughs computer. That order was superseded in February, 1967 by a similar order for a larger, more expensive computer. The second order bore a hand-written notation that it was to be converted into a lease prior to delivery.
Although the computer was delivered and installed in June, 1967, no formal lease was ever executed. Plaintiffs submitted an application and a check, through Larsen, for consideration by a third-party leasing firm in November of 1967. Plaintiffs forwarded a second cheek in December in the same amount to Burroughs before learning that the application had been denied. Defendant then offered to lease directly to plaintiffs at a higher monthly rental. Plaintiffs’ rejection of this offer prompted the removel of the computer in February of 1968.
The District Court found that defendant, at the time of the order, knew the particular purposes for which the equipment was required and that plaintiffs were relying on defendant’s judgment in furnishing suitable goods. It further found that the equipment delivered was not fit for the purposes intended, and that plaintiffs were damaged thereby.
These findings of fact are amply supported by the record. During the course of plaintiffs’ negotiations with Larsen, the latter became thoroughly familiar with the operations of their accounting practice. Plaintiffs testified that they relied reavily on Larsen’s assessment of the computer’s suitability for their particular needs. That reliance prompted plaintiffs to solicit additional business from their customers which was to be provided by the expanded capabilities of the new machine.
Following installation and debugging of the machine, a number of customer accounts were transferred to the automated process. Within a short time, problems arose in the operation of the computer, requiring numerous visits by Burroughs’ repairmen. These difficulties occurred as frequently as daily and often necessitated shutting the computer down until the repairs could be made. The problems experienced adversely affected the plaintiffs’ ability to promptly and accurately service their customers’ accounts. The damage to the reputation of the firm was one of the factors which led to the sale of the practice.
Given this evidence, the district court concluded that defendant had breached both express and implied warranties of fitness for intended use. It further concluded that this breach was the proximate cause of the damages which we shall deal with later.
Defendant argues that there was no transactional basis for any warranty; that breach of warranty, if such warranty existed, was not established by the record; and that if there was a breach of warranty, the plaintiffs waived their claim for relief.
Defendant maintains that the transaction here amounted to nothing more than a gratuitous bailment, giving rise to no express or implied warranty of fitness for intended use. We disagree.
At the very least, a bailment for mutual benefit arose as both parties received - the benefits of the transaction. Global Tank Trailer Sales v. Textilana-Nease, Inc., 209 Kan. 314, 496 P.2d 1292; Miller v. Hand Ford Sales, Inc., 216 Or. 567, 340 P.2d 181; 8 C.J.S. Bailments § 8(a). Plaintiffs had the use of the computer while the defendant had the expectation of profit from a lease directly with the plaintiffs or a sale the third-party leasing company. Defendant further benefitted by the receipt of the two cheeks as well as the sale of forms to be used with the computer'.' To argue that defendant gratuitously placed a $38,-000 computer at the disposal of the plaintiffs without expectation of profit does not square with the facts.
Bailments for mutual benefit fall within the scope of section 42-101, R.C.M. 1947, which provides:
“Hiring is a contract by which one gives to another the temporary possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time.” [Emphasis supplied]
The Legislature, by the use of the word “reward”, obviously contemplated benefits other than money as being included in a hiring. We find no sound reason for excluding anticipated rewards from the scope of the statute.
Section 42-211, R.C.M. provides:
‘ ‘ One who liets personal property must deliver it to the hirer, secure his quiet enjoyment thereof against all lawful claimants, put it into a condition fit for the purpose for which he lets it, and repairs all deterioration thereof not occasionend by the fault of the hirer and not the natural result of its use.” [Emhasis supplied]
This statute expresses the common law of bailments requiring fitness for use in bailments for mutual benefit. Atlantic Tug & Equip Co., v. S. & L. Paving Corp., 40 A.D.2d 589, 334 N.Y.S.2d 532, 8 Am.Jur.2d Bailments § 144. When a bailor has reason to know the use for which the property is required, there arises an implied warranty of fitness for that use — particularly when the bailee relies upon the bailor’s expertise as to the suitability of that property for that use.
Accordingly, defendant’s delivery of the computer created a bailment for mutual benefit, and that relationship gave rise to an implied warranty of fitness for use in plaintiffs ’ practice. The district court found, and the evidence clearly shows, that that warranty was breached. From the time of installation to the time of removal, the computer suffered malfunctions which made it incapable of providing timely and accurate information. Defendent’s protestations that a complex piece of equipment such as this is expected to have such problems are not persuasive. While the problems might be normal for this machine, and we are not convinced of that, defendant should have then known that the computer would never be suitable for plaintiffs ’ needs. His representations to the contrary would then be fraudulent.
Defendant further suggests that plaintiffs waived their claim of breach of warranty by failing to reject the computer during the approximately eight months after delivery. We cannot agree. Even if the defense of waiver had been timely raised, in accordance with Rule 8(c), M.R.Civ.P.,- the evidence does not conform to the theory. WTiile the plaintiffs did retain possession for almost eight months, the evidence clearly shows that they did not accept the computer in its defective condition. The record is replete with repeated complaints made by the plaintiffs, resulting in numerous service calls directed at remedying the many problems. Plaintiffs’ actions amount to a good faith attempt to permit defendant to remedy the defects, not an acceptance of them. We therefore find no waiver of the protection of warranties of fitness for intended use. For similar holdings see: Ekco Products Company v. United States, 312 F.2d 768, 160 Ct.Cl. 75 (1963); KLPR TV, Inc. v. Visual Electronics Corporation, D.C., 327 F. Supp. 315, 465 F.2d 1382 (8th Cir. 1972) ; Carlo Bianchi & Co. v. Builders’ Equipment & Supply Co., 347 Mass. 636, 199 N.E.2d 519.
The district court awarded damages in the following amounts:
1) $4,000 for time spent attempting to make the computer work and time spent correcting the mistakes made by the computer — time which otherwise could have been billed to clients.
2) $1,320.37 for hiring additional help required by the computer problems.
3) $3,000 in wages for hiring another accountant to conduct the Big Timber practice since the computer demanded plaintiffs ’ time in Livingston.
4) $139.40 for costs of preparing a room for installation of the computer; $1,596 which was the amount of the two checks which plaintiffs sent to defendant during lease negotiations; $64.05 for telephone charges expended in informing defendant’s repairmen that the computer was malfunctioning.
5) $3,391 for loss sustained on the sale of the Big Timber business.
6) $3,268 for loss sustained on the sale of the Livingston business.
Apart from the challenge to the finding of any liability here, defendant further contends that: 1) There is insufficient evidence to support the award of numbers 5 and 6; 2) Items 1, 3 and 6 are duplicative and therefore excessive; 3) A contractual provision limiting damages should have been applied; and 4) The value of the use of the computer should have been offset against any damage awarded. Plaintiffs cross-appeal, alleging that 1 and 6 should have been larger awards.
Damages may properly be awarded when they serve to compensate the plaintiff for detriment proximately caused by the defendant. Section 17-301, R.C.M. 1947. Before an award can be made, the damages must be clearly ascertainable in both their nature and origin. Section 17-302, R.C.M. 1947. Damages which are a matter of mere speculation cannot be the basis of recovery. Laas v. Mont. Hwy. Comm’n, 157 Mont. 121, 483 P.2d 699; Cruse v. Clawson, 137 Mont. 439, 352 P.2d 989; Jurec v. Rasnik, 104 Mont. 45, 64 P.2d 1076.
Plaintiffs purchased the Big Timber practice in 1966 for $25,000 and sold it in May of 1968 for $21,609. The district court awarded the difference (Number 5) as damages. The record shows that the Big Timber practice suffered when the errant computer demanded time which would otherwise have been spent there attending to business. The measure of damages applied by the district court is sufficiently defined to avoid a charge of being speculative. Since the cause, origin and nature of the damages is clear, we will not disturb that judgment.
The Livingston practice was fifteen years old when sold in 968 for $18,750. The district court awarded $3,268 as damages for loss on that sale (Number 6 above). That figure lacks both the certainty of origin and the factual basis which might allow us to affirm it. It appears that the district court arrived at this figure by subtracting the actual gross income of the Livingston practice in 1967 from a projected gross income figure for 1967 which an expert testified would have been the practice’s gross income had it not had the computer problems. While a court can properly award damages for a loss of net profits, it cannot award damages for a loss of anticipated gross income. Klemens & Son v. Reber Plbg. & Htg. Co., 139 Mont. 115, 360 P.2d 1005; 22 Am.Jur.2d Damages § 178.
Furthermore, it is difficult to determine why the district court looked at these figures in determining the loss on the sale of the Livingston practice. [See Finding of Fact No. 13]. The record contains voluminous expert testimony concerning methods of placing a valuation on plaintiff’s practice at the time of sale. Without the benefit of further explanation of the computations used by the trial court, and since the award is challenged by both parties,' a re-determination of number 6 is necessary.
Since the expert who testified concerning the appropriate valuation of the business included a number of variables in his basic formula of a certain percentage of gross income, we cannot compute damages based upon the record without making certain determinations of fact. These are properly the functions of the trial court, and we therefore must remand for further consideration of this element of damage.
Defendant further protests that the damages awarded as numbers 1, 3 and 6 above overlap and encompass but a single detriment to the plaintiffs. Since number 6 involves the loss on the sale of the Livingston practice, we find no overlap between it and the other items. On their face, however, we can see the possibility of overlap between items 1 and 3. Since the time spent in correcting computer errors is time which plaintiffs might otherwise have spent performing services for clients, it is logical that the cost of hiring another to service those clients' would relieve plaintiffs of some of the damages of lost time. Without inore, it would appear that the cost of hiring the additional accountant and the loss of billable time would be to some extent duplicative. However, the award for loss of billable time represents a substantial reduction in the amount of damages claimed by plaintiffs for that item. In fact, plaintiffs protest that reduction on cross-appeal.
The reduced award was apparently the result of the district court’s adjustment of the claimed figure to take into account the overlap mentioned above. On this record, that adjustment was reasonable and will not be disturbed by this court.
Defendant also calls attention to the disclaimer of liability for consequential damages contained in the purchase agreement here. The very language of the waiver belies its applicability here. It reads:
“* * * Seller shall not be liable for damage caused by delay in delivery which is unavoidable or beyond Seller’s reasonable control nor in any event for consequential damages.”
The provision clearly speaks to consequential damages arising from delay in delivery, which is not involved here. In addition, the language appears in a document which purports to be a purchase agreement, yet the parties agree that no purchase was intended. The language of that mere order cannot be considered governing during the period of bailment. Finally, the waiver suffers the same infirmity as the “fine print waiver” invalidated in Quality Acceptance Corp. v. Million and Albers, Inc., 367 F.Supp. 771 (D.Wyo. 1973), and many similar cases.
As to the question of offsetting the value of the use of the computer against any damages awarded ( it should be sufficient to note that no evidence of such value was introduced. Indeed, it is difficult to imagine how a computer which so damaged plaintiffs’ practice would be said to have had value to them.
The final issue raised by the defendant concerns the costs of suit. Plaintiffs, on appeal, have admitted that our decision in Johnson v. Furgeson, 158 Mont. 170, 489 P.2d 1032, supports the defendant’ contentions. We there held that costs of depositions taken for the convenience of the deposing party in marshalling his own case must be borne by that party. See also Davis v. Trobough, 139 Mont. 322, 363 P.2d 727; Isman v. Altenbrand, 42 Mont. 188, 111 P. 849. The remainder of defendant’s objections to the costs are equally well taken as not being included within the provisions of section 93-8618, R.C.M. 1947.
It follows that the judgment of the district court must be affirmed in part and reversed in part. The judgment is sound with the exception of that element of damages dealing with the-Livingston practice loss, and the assessment of costs. We must, therefore remand for a redetremination of the amount of damages arising from the loss on the sale of the Livingston business. Judgment should be then entered reflecting that amount, and. costs should be awarded in an amount consistent with this; opinion.
MR. JUSTICES CASTLES, JOHN C. HARRISON and. DALY, and The Hon. ALFRED B. COATE, District Judge, sitting for MR. CHIEF JUSTICE JAMES T. HARRISON, concur.
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MR. CHIEF JUSTICE ADAIR:
Mandamus. Original proceeding. The relator, Beryl L. Treat, petitions for a writ of mandate to compel respondent, the district court of Ravalli county, to furnish him “with a copy of trial and court record transcript” of the proceedings had and done upon his trial and conviction upon a jury’s verdict therein.
By information filed in the respondent court, relator was charged with having committed the crime of burglary. At the time set for his arraignment, it appearing that he was without counsel and without means of employing counsel, the court appointed attorney Clyde Hayden to represent relator. Thereafter with his counsel present relator entered a plea of not guilty to the charge.
Subsequently, on leave first obtained, the county attorney filed an amended information charging the same offense and also charging a prior conviction for the crime of grand larceny. Thereafter attorney Stanley M. Doyle entered the case as additional counsel for relator, following which leave was granted to withdraw relator’s plea and to interpose a demurrer to the amended information. Upon the overruling of the demurrer a plea of not guilty was again entered to the amended information.
Thereupon relator, by his counsel, Stanley M. Doyle, Esq., and Clyde Hayden, Esq., applied to this court for a writ of prohibition against the respondent court and the Hon. Albert Besancon, a district judge presiding therein, which writ was denied. See State ex rel. Treat v. District Court, No. 8863, 122 Mont. 249, 200 Pac. (2d) 248.
Thereafter relator was tried on the charges set forth in the amended information, convicted by a jury, and on January 20, 1949, sentenced to twelve years imprisonment in the state prison where he is now confined and serving his sentence.
May 27, 1950, relator, appearing pro se, filed in this court a petition representing that he “did make an oral request that he intended to appeal and did demand a copy of any and all court procedings held against him, said demand, oral request and notice of appeal being made orally in open court on the date sentence was imposed, January 20, 1949,” and that he “did file a petition requesting a transcript of trial and court record with the Ravalli County District Court, said petition being denied April 21, 1949, by order of the Honorable Albert Besancon, Hamilton, Montana.”
The petition further recites: “Your petitioner denies that the Judge did consider the true facts contained in your petitioner’s request for trial and court record transcript. Your petitioner did notify said court and Judge that he was a poor person unable to pay for said trial and court record transcript. Your petitioner contends that he is entitled by state law and Federal constitutional amendment to a copy of any and all court proceedings held against him; that he is a poor man unáble to pay for same. ’ ’
Attached to and made a part of relator’s petition is an instrument designated “Forma Pauperis” wherein relator deposes: “That he is a poor man with less than fifty ($50) dollars in cash or worldly possessions and respectfully requests that he be allowed to argue his petition of Mandamus in Forma Pauperis and permission to appeal his conviction, of which he is innocent, to the Montana State Supreme Court.”
The Constitution of Montana provides that “appeals shall be 'allowed from the decisions of * * * district courts to the supreme court under such regulations as may be prescribed by law.” Art. VIII, sec. 15.
R. C. M. 1947, sec. 94-8101, provides: “An appeal to the supreme court may be taken by the defendant, as a matter of right, from any judgment against him. ’ ’
. The regulations prescribed by law for the taking of appeals in criminal cases so far as here pertinent are as follows:
An appeal may be taken by the defendant from a final judgment of conviction, R. C. M. 1947, see. 94-8103, entered in the district court within six months after its rendition, R. C. M. 1947, sec. 94-8105.
“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.” Emphasis supplied. R. C. M. 1947, sec. 94-8106.
While a defendant convicted in a justice of the peace court or in a police court may take an appeal to the district court “by giving notice in open court of Ms intention so to do, at the time of the rendition of the verdict or judgment,” E. C. M. 1947, sec. 94-100-34; State ex rel. Hodgdon v. District Court of Tenth Judicial District, 33 Mont. 119, 82 Pac. 663, yet such practice and provision is not applicable to the taking of an appeal to the Supreme Court from a judgment entered in a district court, the necessity, mode and sufficiency of the notice of appeal M the latter case being governed by the provisions of section 94-8106, supra, which statute is jurisdictional and failure to give notice in conformity therewith is ground for dismissal of the appeal.
“Where the statute requires that the notice of an appeal shall be filed with the clerk, an oral notice in open court is insufficient to give the appellate court jurisdiction, and so is a written notice of intention to appeal. ’ ’ Emphasis supplied. 24 C. J. S., Criminal Law, sec. 1711, page 406, notes 42 and 43.
Eelator’s time for filing and serving his notice of appeal expired July 20, 1949, being more than ten months prior to the date of the filing m this court of his petition for a writ of mandate.
Eelator’s “oral request tha,t he intended to appeal * * * made orally in open court” on January 20, 1949, fails to conform to the regulations prescribed by E. C. M. 1947, section 94-8106, and is not only ineffectual but wholly Msuffieient to give this court jurisdiction, 24 C. J. S., sec. 1711, page 406, notes 42, 43, hence a copy of the trial and court record would be of no avail at this late date. “The law neither does nor requires idle acts.” E. C. M. 1947, sec. 49-124.
In this court on his application for a writ of prohibition, in ease No. 8863, supra, and upon his trial in the district court, relator was represented by industrious and able counsel of long experience in the courts of this state and we are inclined to the belief that his rights were fully defended and protected.
Accordingly the writ is denied and the proceeding dismissed.
ASSOCIATE JUSTICES FREEBOURN, ANGSTMAN, MET-CALF and BOTTOMLY concur.
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MR. JUSTICE JOHN C. HARRISON
delivered the Opinion of the Court.
This is an appeal from a judgment adverse to plaintiff entered in the district court, Yellowstone County. The matter was tried by the court sitting without a jury. Plaintiff Holland Construction Company, Inc. alleged an indebtedness to it by defendant Neil F. Lampson, Inc. for labor, parts and materials furnished on the repair of equipment owned by Lampson.
On appeal, plaintiff Holland brings three issues:
1. Is there substantial evidence to support the findings of fact and conclusions of law of the trial judge who found that the reasonable value of the services of Holland Construction Co. was $18,292.45?
2. Did the trial court err in refusing to allow any testimony offered by plaintiff?
3. Was the court correct in applying the rule that plaintiff was entitled to recover only the reasonable value of the services performed?
Holland alleged that Lampson was indebted to Holland for $33,557.82. Lampson in its answer admitted certain work was performed on its equipment; that there was no contract between the parties for the work performed; and therefore Holland was entitled to recover only for reasonable services rendered. The trial court found the amount owed Holland to be $18,292.45.
Prior to submission of its statement for the total cost of the repair work to the Lampson crane there was no discussion of the total cost, or hourly cost for the work done between the parties, unless it could be said that Holland’s statement that the shop was “competitive in the area”, was a discussion of cost. The work took approximately 30 days of shop work. When the statement was submitted to Lampson, it was considered exorbitant and Lampson refused to pay. Holland alleges it is entitled to recover for all time spent by its staff of thirteen employees, plus office staff, spent on the job. Lamp-son alleges the work could have been performed in far less time and that Holland is only entitled to recover for the reasonable number of hours it would take to perform the job.
At trial Holland introduced time cards to show the number of hours worked by its personnel to establish what was a reasonable hourly figure. No other testimony was introduced to support the reasonableness of the statement submitted. A problem arose as to the time cards in that they were discredited because of the manner in which they were kept and the obvious errors which appeared on the face of the cards. One difficulty was that due to the inclement weather the time clock froze and had to be repaired. Another was that the workers were supposed to keep their job time allocated to the various jobs they worked on during the day, but when the cards were checked the times written in on the various cards appeared to be in only one person’s handwriting. As a result, the trial court rejected the time card evidence as proof of reasonableness of the total job cost inasmuch as Holland offered no other explanation for the time required to perform the work on the crane.
In an effort to ascertain a proper figure for the amount owed Holland, the court viewed Holland’s machine shop operation; checked the crane itself to determine the work performed; and, after so doing concluded the time charged was excessive, although it accepted Holland’s figures on the proper hourly charge.
Lampson introduced as a witness one Draper, its foreman, who was present when most of the work was done. Draper testified that 80% of the work was done on the crane within ten days, after about 313 man hours. The bill submitted showed 1300 man hours. Lampson also introduced the testimony of an expert, one Peterson from an independent machine shop in Portland, Oregon, who testified as to, in his opinion, the number of hours reasonable to do the work required. Lampson introduced other testimony to support Peterson’s testimony and compared the number of hours charged by Holland with hours charged by other machine shops for similar work. Appellant Holland’s first issue questions the sufficiency of the evidence to support the trial court’s findings of fact and conclusions of law. This Court has long held that it will uphold a trial court’s findings unless the evidence decidedly and with decisive clarity predominates against them. Christensen v. Hunt, 147 Mont. 484, 414 P.2d 648. Further, we have held that in reviewing the record in the trial court it is not within our province to determine whether we agree with the conclusions reached if they are supported by the evidence. Stromberg & Brown v. Seaton Ranch Co., 160 Mont. 293, 502 P.2d 41; Hellickson v. Barrett Mobile Home Transport, Inc., 161 Mont. 445, 507 P.2d 523; Nissen v. Western Const. Equip. Co., 133 Mont. 143, 320 P.2d 997.
The question here is whether Holland has shown there was an insufficiency of evidence to support the judgment. We find appellant failed to overcome the presumption of the correctness of the trial court’s findings (1) by failing to introduce evidence to support the reasonableness of the hours charged to the Lampson job, and (2) that Lampson’s witnesses’ testimony supports the court’s findings.
As noted heretofore, the validity of the time cards was questioned and at best they only show the number of hours charged to the job and not the hours necessary to accomplish it. Holland totally failed to show by the time cards the number of hours necessary or reasonable to perform the work.
The only real evidence before the trial court to assist in. determining the reasonable number of hours to do the necessary work was introduced by Lampson’s Witness Peterson, who testified without objection. Peterson was qualified, through years of experience in bidding on similar jobs, to testify on the reasonable number of hours necessary to accomplish the work performed by Holland. His testimony took into consideration the type of work, Holland’s equipment, and the new parts used. He inspected the work done on the crane and testified he could have done the same work, using new parts, for $12,750. However, he testified that in Holland’s shop, without using new parts used by Holland, and doing the same work that Holland did, that the reasonable number of hours, using Holland’s charges per hour, would bring the amount due to $16,172.66. Peterson’s testimony was substantiated by Lampson by introducing bills for similar work done in other areas and by foreman Draper’s testimony. We find no merit in issue one.
Issue two concerns appellant’s allegation that the trial court erred in not allowing certain testimony offered by appellant. This refused testimony was evidence attempted to be introduced through two witnesses, Clarence Merry and John Bustell, concerning the reasonableness of the charge per hour. Merry was the owner of the Yellowstone Hydraulics & Elevator Co., and had been a working machinist for 24 years. Bustell was one of the owners of Billings Machine & Welding Co., and had been a working machinist for over 30 years. When Merry was asked if he had an opinion with regard to the number of hours charged, the testimony was objected to on the grounds a proper foundation was not laid, and none was laid after the objection. However, Holland’s attorney later clarified what she was trying to get from the witness by these questions:
“Q. Your Honor, I believe that I gave the wrong impression. I was only asking him for the hourly rate for that type of work, if you will recall.”
And later:
“Q. I realize that you would not know the number of hours and therefore the total bill. I only ask you to testify as to the reasonableness of the charge per hour for the particular operation on the particular piece of equipment.”
The testimony was to go to the hourly rate which was not disputed, but could not, as Holland desired, be considered when applied to the hours of the total job.
The second witness Bustell was merely asked if he concurred with the testimony given by Merry as to the reasonableness of the hourly rate, and was never asked to comment upon the number of hours it took to do the job.
The trial court had already admitted all of Holland’s exhibits to support the hourly charge and used them in its findings, conclusions and judgment. We find no merit in appellant’s issue two.
Issue three considers whether the court was correct in applying the rule Holland was entitled to recover only the reasonable value of services performed. Considering the facts the correct and controlling law applicable is section 13-507, B.C.M.1947, which provides:
“When a contract does not determine the amount of the consideration, nor the method by which it is to be ascertained, or when it leaves the amount thereof to the discretion of an interested party, the consideration must be so much money as the object of the contract is reasonably worth.” (Emphasis added).
While a case applying the above quoted statutory provisions has not been previously considered in this jurisdiction, other jurisdictions have applied it. Braden Winch Company v. Surface Equipment Company, 196 Okl. 444, 165 P.2d 640; Hawkins v. Delta Spindle of Blytheville, Inc., 245 Ark. 830, 434 S.W.2d 825, 827. In Hawkins, the court noted:
“Where labor or material is furnished by a party and no price is agreed upon, the law will imply an agreement to pay what it is worth. [Citing case.] If a contract makes no statement as to the price to be paid for services, the law invokes the standard of reasonableness and the fair value of the services is recoverable. [Citing cases and authority.] This principle has been applied by this court in cases involving professional services. [Citing cases.] There is no reason why it should not be applied in the circumstances existing here. The burden was upon appellee to show that the amount for which it sought recovery was the fair and reasonable value of the parts, materials and labor furnished. It failed to do so.”
In Hawkins the court considered the fact that the work was stretched over a three day period of time when it could have been done in one day. The same principle of law has been covered by contract cases “quantum meruit” in a seeies of cases before this Court. Higby v. Hooper, 124 Mont. 331, 221 P.2d 1043; Smith v. Gunniss, 115 Mont. 362, 144 P.2d 186.
The burden is upon plaintiff to show what is the reasonable value of the parts, materials and labor furnished. Here, Holland relied solely on the time cards to establish the reasonableness of the services. However, there was sufficient evidence to refute their accuracy, and Holland offered no evidence to justify the total hours or to show that they were required to accomplish the work. In Delaware Engineering Co. v. Pusey & Jones Co., 1 W.W.Harr. 163, 31 Del. 163, 112 A. 371, the court noted that where one person engages another to make an article for him, and the person employed is to be paid by the hour for the work, it is the duty of that person to furnish the work on the article in a reasonable number of hours, and if the person engaged takes unreasonable time to complete the work, he is entitled to be compensated for only such time as would reasonably have been required to do the work.
We find no merit in appellant’s issue three.
The judgment of the trial court is affirmed.
. MR. CHIEF JUSTICE JAMES T. HARRISON and MR. JUSTICES DALY and CASTLES c.oncnr.
MR. JUSTICE HAS WELL took no part in the above opinion.
|
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