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ORDER On March 1, 2016, we issued an opinion in the above-entitled matter, affirming the Third Judicial District Court’s orders. Appellant Wayne S. Hansen Trust (“the Trust”) timely filed a Petition for Rehearing on March 15, 2016, and Johnson filed his objection to the rehearing request on March 30, 2016. The Court, having considered the Petition and the objection, has determined to grant the Petition to the extent necessary to partially revise the analysis set forth in the opinion. The outcome is unaffected. DATED this 3rd day of May, 2016. IT IS ORDERED that the Petition for Rehearing is GRANTED IN PART. This Court’s March 1, 2016 Opinion in DA-14-0478, Johnson v. Wayne S. Hansen Trust, 2016 MT 46, is hereby AMENDED and a revised Opinion is issued this date. The Clerk of Court is directed to mail a true copy hereof to all counsel of record. /S/MIKE McGRATH /S/JIM RICE /S/ PATRICIA COTTER /S/ JAMES JEREMIAH SHEA /S/ BETH BAKER
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CHIEF JUSTICE McGRATH delivered the Opinion of the Court. ¶1 Christopher Michael Awbery appeals from his October 2013 conviction on six felony charges in the Montana Tenth Judicial District Court. We affirm. ¶2 We restate the issues on appeal as follows: Issue One: Did the District Court properly exclude evidence that some of the victims suffered prior sexual abuse by others? Issue Two: Is Awbery entitled to a new trial based upon prosecutorial misconduct? Issue Three: Is Awbery entitled to a new trial based upon the cumulative effect of the alleged errors? FACTUAL AND PROCEDURAL BACKGROUND ¶3 The State charged Awbery with two counts of incest against his daughter A.A. when she was age 12 or younger; with sexual assault and sexual intercourse without consent against A.A.’s half-sister J.G. when she was age 16 or younger; with sexual intercourse without consent against I.A. when she was age 12 or younger; and with sexual assault against N.H. when she was age 16 or younger. All of the charges and the convictions were felonies. ¶4 Each of the victims testified at trial, describing how they were sexually abused by Awbery. His daughter A. A. testified that she awoke with Awbery on top of her, and that he dragged her by her hair to another room and raped her. She described other incidents of rape; of Awbery penetrating her with a vibrator; and of Awbery touching her vaginal area with his fingers in a “game” that he called “check the oil.” She testified that Awbery threatened to hurt people close to her if she told anyone what he had done. ¶5 A.A.’s half-sister J.G. testified that Awbery repeatedly touched her vaginal area with his fingers and for a period of time raped her almost every day. Awbery similarly threatened J.G. that if she told anyone what he had done he would kill her mother. A.A.’s friend I.A. testified that Awbery also played “check the oil” with her; that he raped her on more than one occasion; and that he used a vibrator on her vaginal area. N.H., another friend of A.A., testified that Awbery touched her inappropriately on several occasions, and that she observed Awbery take other girls into rooms after which she would hear a scream and see the girl run out with her pants down. ¶6 The State presented the testimony of three expert witnesses. Dr. Wendy Dutton did not testify about the victims, the assaults against the victims, or whether the assaults had happened. Rather, she described the processes used by perpetrators of child abuse and the typical behaviors exhibited by girls who have been abused. Clinical counselor Michelle Feller testified about counseling she provided to A.A., J.G., and N.H. She had been a counselor for A.A. and J.G. since before the assaults by Awbery. She first diagnosed them with Post Traumatic Stress Disorder in March 2013, after the assaults by Awbery, and testified that they did not have the symptoms necessary to make a PTSD diagnosis prior to that time. Feller testified that N.H. had less severe symptoms, and diagnosed her with acute stress disorder. Feller described the general symptoms exhibited by victims of child sexual abuse and that she had seen those symptoms in A.A., J.G. and N.H. The State also presented the testimony of Morgan Mitchell, a therapist who provided counseling to I.A. She also described symptoms typically exhibited by child sexual abuse victims, and testified that she had observed them in I.A. ¶7 The District Court instructed the jury that the testimony of the experts “cannot be used to show that a crime here was committed or that the defendant committed it; nor can it be considered as an opinion by them that the alleged victims are telling the truth.” ¶8 Awbery testified in his own defense, denying that he committed any of the acts described by the victims. The jury convicted him on all counts. ¶9 In March 2014 the District Court sentenced Awbery to terms in prison. STANDARD OF REVIEW ¶10 We review a district court’s rulings on the admission of evidence to determine whether there was an abuse of discretion. Beehler v. Eastern Radiological Assoc., 2012 MT 260, ¶ 17, 367 Mont. 21, 289 P.3d 131. We review a district court’s application of a statute to determine whether it was correct. Beehler, ¶ 17. DISCUSSION ¶11 Issue One: Did the District Court properly exclude evidence that some of the victims suffered prior sexual abuse by others ? ¶12 Prior to trial the State moved that the defense be precluded from introducing evidence that A.A., J.G. and N.H. had each been sexually assaulted by others prior to Awbery’s offenses. The State relied upon the exclusions of the Rape Shield Law, § 45-5-511, MCA. The apparent perpetrator against A.A. and J.G. was a man named Thompson who was convicted of sexual offenses as a result. The alleged perpetrator against N.H. was a man named Gallagher. That incident was not fully investigated because of the wishes of the victims’ parents, and no charges were ever filed. ¶13 The defense argued that Awbery’s constitutional right to present a defense was implicated and that it overcame the exclusions of the Rape Shield Law. According to the defense, the prior assaults increased the chance that the victims suffered PTSD as a result, and increased the chance that the allegations against Awbery were erroneous because the victims suffered from PTSD. Further, the defense stated that it did not intend to ask the girls themselves about the incidents, but predicted that the testimony of “perhaps family members, counselors, or Ms. Dutton might make [the prior incidents] relevant.” ¶14 After hearing argument of counsel, the District Court refused to exclude the prior assault evidence outright, but warned that if it were admitted it would have to be “very, very relevant” and limited. The District Court stated that the prior “incidents are generally covered by the rape shield law and not admissible unless testimony or an exception makes it so.” (Emphasis added.) The defense subsequently argued that Dutton’s general background testimony established that PTSD could be a cause for subsequent erroneous allegations of sexual assault and that the PTSD diagnosed in some of Awbery’s victims could come from the prior assaults. ¶15 The District Court ultimately excluded the defense from presenting evidence of the prior assaults against three of the victims because it would cause undue prejudice and would confuse and distract the jury. The District Court further noted that the record reflected that Feller’s PTSD diagnosis was specific to the time of Awbery’s offenses and that she testified that the PTSD did not exist as a diagnosable condition before Awbery’s offenses. In addition, the District Court noted that there was no evidence that there was any similarity between the prior incidents and Awbery’s offenses and that the jury could be confused and distracted by hearing about other incidents. ¶16 The Montana Rape Shield Law provides: Evidence concerning the sexual conduct of the victim is inadmissible in prosecutions under this part except evidence of the victim’s past sexual conduct with the offender or evidence of specific instances of the victim’s sexual activity to show the origin of semen, pregnancy or disease that is at issue in the prosecution. Section 45-5-511(2), MCA. ¶17 In 1975, Montana joined most other states by adopting a rape shield law. See Ch. 129, L. 1975. Under the Rape Shield Law, “evidence concerning the sexual conduct of the victim” is inadmissible in a criminal prosecution, with very limited exceptions not at issue here. Section 45-5-511(2), MCA. Montana’s Rape Shield Law is designed to prevent the trial of the charge against the defendant from becoming a trial of the victim’s prior sexual conduct. State v. Higley, 190 Mont. 412, 422, 621 P.2d 1043, 1050-51 (1980). Rape shield laws generally protect victims from being exposed at trial to harassing or irrelevant questions concerning their past sexual behavior. Michigan v. Lucas, 500 U.S. 145, 146, 111 S. Ct. 1743, 1745 (1991); State v. Anderson, 211 Mont. 272, 283, 686 P.2d 193, 199 (1984). They evolved from society’s recognition that a rape victim’s prior sexual history is irrelevant to issues of consent or the victim’s propensity for truthfulness. Tanya Bagne Marcketti, Rape Shield Laws: Do They Shield the Children?, 78 Iowa L. Rev. 751,754-55 (1993). The statute reflects a compelling state interest in keeping a rape trial from becoming a trial of the victim. Anderson, 211 Mont. at 283, 686 P.2d at 199. ¶18 Although rape shield legislation originally focused on adult rape victims, most jurisdictions also include child victims of sexual abuse within the protections of their rape shield statutes. In 1985 the Montana Legislature broadened the applicability of the Rape Shield Law to include cases involving all types of sexual abuse. See Sec, 3, Ch. 172, L. 1985. The policies underlying the application of rape shield statutes to adult victims apply to child victims as well: rape shield statutes eliminate the need for victims to defend incidents in their past and minimize the trauma of testifying. Marcketti at 756. ¶19 Conflict can arise between rape shield statutes and a defendant’s Sixth Amendment rights to confront his accuser and to present evidence at trial in defense of the charge against him. A defendant charged with a crime has a right, arising from the Sixth Amendment to the United States Constitution and Article II, Section 24 of the Montana Constitution, to confront his accusers. State v. MacKinnon, 1998 MT 78, ¶ 33, 288 Mont. 329, 957 P.2d 23. A defendant has a similarly-based right to present evidence in his defense. State v. Johnson, 1998 MT 107, ¶ 22, 288 Mont. 513, 958 P.2d 1182. ¶20 Neither the Rape Shield Law nor the defendant’s right to confront and to present evidence are absolute. MacKinnon, ¶ 33; Johnson, ¶¶ 22-23. The Rape Shield Law cannot be applied to exclude evidence arbitrarily or mechanistically, Johnson, ¶ 21, State v. Colburn, 2016 MT 41, ¶ 25, 382 Mont. 223, 366 P.3d 258, and it is the trial court’s responsibility to strike a balance between the defendant’s right to present a defense and a victim’s rights under the statute. State v. Lindberg, 2008 MT 839, ¶ 53, 347 Mont. 76, 196 P.3d 1252. A court balancing the interests of the defendant with those protected by the Rape Shield Law should require that the defendant’s proffered evidence is not merely speculative or unsupported. Johnson, ¶ 24; Lindberg, ¶ 56. The court should consider whether the evidence is relevant and probative (Rules 401 and 402, M. R. Evid.); whether the evidence is merely cumulative of other admissible evidence; and whether the probative value of the evidence is outweighed by its prejudicial effect (Rule 403, M. R. Evid.); Commonwealth v. Fernsler, 715 A.2d 435, 440 (Pa. Sup. Ct. 1998). The purpose of these considerations is to ensure a fair trial for the defendant while upholding the compelling interest of the Rape Shield Law in preserving the integrity of the trial and keeping it from becoming a trial of the victim. Anderson, 211 Mont. at 283, 686 P.2d at 199. ¶21 We conclude that the District Court properly applied the Rape Shield Law and properly precluded the defense from presenting evidence and argument concerning the prior incidents involving three of Awbery’s victims. The District Court ruled that Awbery had not established a sufficient foundation to admit the evidence, and recognized that Awbery could not make a showing that the evidence was admissible as an exception to the Rape Shield Law, properly balancing the interests involved. It is clear that the defense theory — that three of his victims suffered prior abuse which left them suffering from PTSD which caused them to make erroneous reports against Awbery — never progressed past conjecture and speculation. There was no evidence that any of the victims suffered from PTSD prior to Awbery’s assaults, and no evidence that any condition the victims suffered resulted in their making false accusations. The testimony of the State’s experts did not support the defense theories, and it specifically defused the theory of infliction of PTSD prior to Awbery’s offenses. ¶22 Further, there was no clear evidence of the prior acts, either the facts of the abuse or the effects of it upon the victims. While Thompson was convicted of offenses, the defense presented no evidence or offer of proof about the nature of those offenses or whether there was any similarity to the acts allegedly perpetrated by Awbery. Further, in the case of the allegations involving Gallagher, there was no evidence that the prior acts even occurred. The defense disclaimed any intent to ask the girls themselves about the prior incidents, and it was never made clear how or to what extent the defense intended to present evidence of the nature and extent of the prior incidents. This clearly, as the District Court recognized, presented a considerable risk of turning the ■trial into a second case involving incidents unrelated to Awbery’s offenses. We agree with the District Court that there would have been a high risk of jury confusion. ¶23 This Court recently considered similar issues in Colburn, in which the defendant was convicted of sexual intercourse without consent, sexual assault, and incest. The victims were the defendant’s own daughter and a second girl, who were both age 11 at the time of the offenses. Defendant’s daughter testified at trial and generally denied that her father abused her. However, a nurse practitioner who had experience interviewing assault victims interviewed the daughter and testified to statements that the daughter made about the defendant’s abusive conduct. The State also played a tape of that interview for the jury. The tape was the “major direct evidence to support the incest charges.” Colburn, ¶ 12. The second girl also testified, and described Colburn’s abuse in detail. The State’s expert also interviewed the second girl and testified that in her opinion the second girl would not have exhibited her detailed sexual knowledge unless she had actually experienced abuse. ¶24 Colburn’s defense was based upon showing that the nurse who interviewed his daughter used leading and suggestive questions, and that proper interviewing technique could have yielded different results. The defense proposed to call an expert to critique the interview techniques used to obtain the statements from defendant’s daughter. The defense further contended that the second victim may have fabricated her allegations against the defendant. In particular, the defense sought to introduce evidence that a month after making her allegations against the defendant, the second girl disclosed to another forensic interviewer that she had been sexually abused by her own father. The defense sought to introduce evidence that the second girl stated that she made the allegations against Colburn to “test the waters,” to determine whether adults would believe her allegations. When adults accepted her allegations against the defendant, she felt comfortable with making the accusations against her own father. ¶25 The District Court in Colburn excluded the defense expert’s testimony on forensic interviewing techniques, and, based upon the Rape Shield Law, prohibited any evidence that the second victim had suffered prior abuse from her own father. This Court determined that the district court in that case wrongly excluded the defense expert on interviewing techniques, and that it applied the Rape Shield Law without considering and balancing the defendant’s right to present a defense with the interests of the victims. The defense laid a proper foundation for its proposed evidence and its theories were not based upon mere speculation. Therefore, we reversed the conviction in Colburn and remanded for a new trial. ¶26 In this case, by contrast, the District Court carefully considered Awbery’s right to present a defense to the charges; weighed it against the interests protected by the Rape Shield Law; and ruled that Awbery might be allowed to present evidence of prior abuse if it were made relevant by trial testimony. While there was expert prosecution testimony in Colburn that tied one victim’s sexual knowledge to her having been abused, there was not that same kind of testimony in Awbery’s case. Further, there was no evidence to tie prior abuse of Awbery’s victim to the development of PTSD as a reason for mistaken testimony. The two cases are factually distinct. ¶27 The District Court properly precluded Awbery from raising issues regarding prior offenses against three of the four victims. ¶28 Issue Two: Is Awbery entitled to a new trial based upon prosecutorial misconduct? ¶29 Awbery contends that remarks by the County Attorney in closing argument were prejudicial, improper and denied him a fair trial. He contends that the County Attorney urged the jury to consider the charges together, rather than to consider each charge separately; that the County Attorney improperly described the victims as “courageous” girls who should be supported; and that the County Attorney personally vouched for the credibility of witnesses. The defense did not object to any part of the closing argument, and requests that this Court undertake plain error review. ¶30 This Court generally does not consider allegations of prosecutorial misconduct in closing argument unless there was a contemporaneous obj ection at trial. However, those allegations can be reviewed under the plain error doctrine. State v. Hayden, 2008 MT 274, ¶¶ 29-30, 345 Mont. 252, 190 P.3d 1091. Plain error review is discretionary and occurs only when the situation implicates the defendant’s fundamental constitutional rights, and when failing to review may result in a manifest miscarriage of justice, may leave unsettled the question of the fundamental fairness of the trial, or may compromise the integrity of the judicial process. State v. Aker, 2013 MT 253, ¶ 21, 371 Mont. 491, 310 P.3d 506. We do not presume prejudice to the defendant from alleged improper argument, and the defendant must show that the argument violated his substantial rights. Aker, ¶ 24. ¶31 Upon reviewing Awbery’s arguments on this issue, we decline to undertake plain error review of the alleged errors. The prosecutor may comment on conflicts and contradictions in testimony and upon the evidence, and may suggest inferences that the jury can draw from the evidence. The prosecutor may comment on the gravity of the crime, the volume of the evidence, the credibility of the witness and the instructions given by the court. Aker, ¶¶ 26-27. Awbery has not demonstrated that the prosecutor’s statements during closing rose to a level that trigger the threshold for undertaking plain error review. ¶32 Issue Three: Is Awbery entitled to a new trial based upon the cumulative effect of the alleged errors ? ¶33 Based upon our disposition of the first two issues, we decline to consider Awbery’s contention that he is entitled to a new trial based upon cumulative error. CONCLUSION ¶34 After careful consideration of the arguments and authorities of the parties, we affirm the convictions. ¶35 Affirmed. JUSTICES WHEAT, COTTER, BAKER, McKINNON, SHEA and RICE concur.
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JUSTICE BAKER delivered the Opinion of the Court. ¶1 Teton Cooperative Reservoir Company (Teton Reservoir) appeals a February 3, 2015 order of the Montana Water Court in Case 410-132, adjudicating Teton Co-Operative Canal Company’s (Teton Canal) water rights to the Eureka Reservoir. We address the following issue on appeal: Whether the Water Court erred in determining that off-stream water storage in the Eureka Reservoir was included as part of Teton Canal’s April 18, 1890 Notice of Appropriation. ¶2 We reverse and remand for further proceedings. PROCEDURAL AND FACTUAL BACKGROUND ¶3 Teton Canal was formed in 1903 for the purpose of appropriating, transporting, storing, and using water for irrigation in Teton County. It and Teton Reservoir are among several water supply entities that distribute water to shareholders from the Teton River northwest of Choteau, Montana. Numerous other water users also divert water from this stretch of the Teton River. Teton Canal’s predecessors in interest filed a number of notices of appropriation for water right claims on the Teton River, including an April 18,1890 Notice of Appropriation (1890 Notice) and an April 29, 1891 Notice of Appropriation (1891 Notice). The Notice of Appropriation under which Teton Canal claims its priority date for the Eureka Reservoir is the 1890 Notice. ¶4 In the 1890 Notice, Teton Canal’s predecessors claimed 3,000 inches of Teton River water for the “special purpose” of “gathering said water in a reservoir and using it to irrigate adjacent lands in Township number 25 North of Range 4 and 5 west.” The 1890 Notice describes the point of diversion as “a point upon [the Teton River’s] north bank six hundred sixty five feet from the [southeast] corner of the [southwest quarter] of Section thirty[-]one (31) Township Twenty[-]five (25) North of Range five (5) West....” ¶5 In the 1891 Notice, Teton Canal’s predecessors claimed 10,000 inches of Teton River water for “irrigating, reservoirs, and other purposes.” The 1891 Notice describes the point of diversion as beginning “upon [the Teton River’s] north bank about 1015 feet south 34° west from the [northwest] corner of Section (36) Thirty[-]six T[ownship] 25 North, R[ange] 6 West....” ¶6 After filing the 1890 Notice, Teton Canal’s predecessors immediately began constructing the Glendora Canal. They eventually formed the Eureka Reservoir Canal and Irrigation Company (Eureka Company). In 1892, the Eureka Company filed an application and plat map with the U.S. General Land Office (GLO) for its water supply and distribution system. The GLO approved the application and plat map in September 1892. The 1892 plat map both depicts the irrigation system the Eureka Company intended to develop and provides legal descriptions for the canals the company had developed by 1892. ¶7 On the 1892 plat map, the Eureka Company’s engineer attested that the Glendora Canal had been built under his supervision. The plat map described the Glendora Canal as “beginning at a point on the north bank of the Teton River... from which the quarter Section corner on the south side of Sec[tion] 31, T[ownship] 25 N[orth], R[ange] 5 W[est] bears N[orth] 47° 25’ W[est] 698 feet distant....” The Glendora Canal’s diversion point depicted and described on the 1892 plat map corresponds to the diversion point described in the 1890 Notice. The 1892 plat map depicts the Glendora Canal running to the Glendora Reservoir. ¶8 The Eureka Company’s engineer similarly attested on the 1892 plat map that Teton Canal’s predecessors constructed the Eureka Canal under his supervision. The plat map describes the Eureka Canal as “beginning at a point on the north bank of the Teton River in the Northeast quarter (N.E. Vi) of Section 35, T[ownship] 25 N[orth], R[ange] 6 W[est] ... from which the Northeast corner of Sec[tion] 36, T[ownship] 25 N[orth], R[ange] 6 W[est] bears N[orth] 85° 58’ E[ast] 6641 feet distant....” The Eureka Canal’s diversion point depicted and described on the 1892 plat map corresponds to the diversion point described in the 1891 Notice. The 1892 plat map both describes and depicts the Eureka Canal’s diversion point approximately two miles upstream from the Glendora Canal’s diversion point. ¶9 In 1893, the Eureka Company sold its assets, including its water rights, to the Montana Land and Water Company, which in turn transferred all of its assets to Russell Shepherd in 1902. Shepherd later was named as a defendant in a district court case adjudicating water rights on the Teton River. Perry v. Beattie, Cause No. 371 (Mont. 11th Judicial Dist., March 28, 1908). In his answer to the complaint, Shepherd asserted water rights based on three notices of appropriation — including both the 1890 Notice and the 1891 Notice. During the Perry litigation, Shepherd transferred his interest in the irrigation assets, including the water rights, to Teton Canal. In 1908, the Perry court decreed that Teton Canal “is entitled to the use of three thousand inches of the waters of said Teton River of date April 18th, 1890.” It is undisputed that Teton Canal’s claims under the 1891 Notice did not survive the Perry decree. ¶10 The 1892 plat map depicts the Eureka Canal running to the Eureka Reservoir in Section 31, Township 25 North, Range 6 West. In 1909 and again in 1926, GLO representatives investigated the Eureka Reservoir site. Although the representative who inspected the Eureka Reservoir site in 1909 recommended “final approval of this reservoir site,” by 1926 another GLO inspector reported that “no reservoir has been built where it was intended to construct the Eureka reservoir....” The inspector recommended that Teton Canal should “state what their intentions are as to the Eureka site,” and suggested that the GLO “call on [Teton Canal] to file proof of ownership, and proof of construction” of the Eureka Reservoir. The inspector further reported that Teton Canal’s Secretary “expressed the opinion that [Teton Canal] was interested in the Eureka site and probably would use it later.” ¶11 Teton Canal demonstrated its interest in developing the Eureka Reservoir site at various stockholder and director meetings in the early 1920s. Based on these discussions, Teton Canal filed a notice of appropriation with a priority date of October 11,1921, (1921 Notice) for 100 cubic feet per second (cfs) of the flood waters of the Teton River. The 1921 Notice’s stated purpose was “for storing water in [a] reservoir located in Sections] 36-25 T[ownship] 25 N[orth] R[ange] 6 W[est], and Sec[tion] 31 T[ownship] 25 N[orth] R[ange] 5 W[est].” This description corresponds with the Eureka Reservoir’s current location and its location depicted on the 1892 plat map. The 1921 Notice also described the point of diversion as “upon [the Teton River’s] north bank... in the Northeast Vi of the Northeast Vi of Section 35 T[ownship] 25 N[orth] R[ange] 6 W[est].” The diversion point described in the 1921 Notice corresponds with the diversion point described in the 1891 Notice and the Eureka Canal’s diversion point described and depicted on the 1892 plat map. ¶12 After filing the 1921 Notice, Teton Canal’s stockholders rejected a proposal to create an irrigation district to finance the Eureka Reservoir’s development. Following the 1926 GLO inspection, minutes of the December 16,1926 Board of Directors meeting indicate that the board directed Teton Canal’s officers to obtain further information as to the company’s right in the reservoir site and to “find out and do what is necessary to hold the right.” It appears that Teton Canal’s stockholders did not again discuss developing the Eureka Reservoir site until January 1934. In September 1936, the stockholders eventually approved “putting $400 per share” toward developing a reservoir. The stockholders voted to apply to the State Water Conservation Board for a loan “of $25,000 for building [a] Reservoir,” and to turn over the reservoir site to the Water Conservation Board. ¶13 The Water Conservation Board filed a declaration of intention to store, control, and divert water on December 3, 1936 (1936 Declaration). Under the 1936 Declaration, the Water Conservation Board claimed the unappropriated waters of the Teton River by “means of the ‘Teton Cooperative Canal Company Project.’ ” The 1936 Declaration stated, “Said waters will be appropriated by means of a diversion ditch, dam and storage reservoir.” It described the point of diversion as a “ditch located in [the southeast quarter] of Section 35, Township 25 north of range 5 West.” In January 1982, Teton Canal’s President signed an affidavit stating that the diversion point’s legal description in the 1936 Declaration was a misprint and that the actual diversion point was located in the northeast quarter of the northeast quarter of the northeast quarter of Section 35, Township 25 North, Range 6 West. This point corresponds to the Eureka Canal’s diversion point as described on the 1892 plat map, the 1891 Notice, and the 1921 Notice. The 1936 Declaration further described the dam and reservoir as being “located in Section 25, township 25 north, range 6 west.” This location corresponds to the Eureka Reservoir’s current location and to its general depiction on the 1892 plat map. ¶14 Teton Canal and the Water Conservation Board jointly constructed the Eureka Reservoir from 1936 to 1937. In November 1946, the Water Conservation Board turned over ownership of the Eureka Reservoir to Teton Canal. The Eureka Reservoir originally had a storage capacity of 4,000 acre feet. In 1947 and 1957, the dam was expanded to increase the Eureka Reservoir’s storage capacity to its current 5,500 acre feet. ¶15 When Teton Canal filed its statement of claim for existing water rights in 1982 as required by the Montana Water Use Act of 1973, it claimed the following distinct water rights: two claims (irrigation and stock) under the decreed 1890 Notice at a flow rate of 75 cfs; two claims (irrigation and stock) under the filed 1921 Notice at a flow rate of 100 cfs; and two claims (irrigation and stock) under the filed 1936 Declaration for unappropriated water. All six claims appeared in the Temporary Preliminary Decree for the Teton River Basin with the same priority date (April 18, 1890), source, period of diversion, period of use, point of diversion (the Eureka Canal), and place of use. Teton Reservoir and the Lower Teton Joint Objectors objected to all six claims. Farmers Cooperative Canal Company (Farmers Canal) filed and subsequently withdrew its objections to Teton Canal’s three irrigation claims. The Water Master consolidated all of the parties’ objections in August 2008. The Lower Teton Joint Objectors reached a settlement agreement with Teton Canal and accordingly withdrew their objections. Teton Reservoir was therefore the single remaining objector. The Water Master held a hearing on October 1 and 2, 2012. ¶16 Under Rule 53(e)(1), M. R. Civ. P., and Rule 23, W. R. Adj. R., the master is to “prepare a report upon the matters submitted to the master by the order of reference.” The presiding Water Master was appointed as an Associate Water Judge for the Water Court in September 2013; therefore, the Associaté Water Judge proceeded to issue a Water Court order rather than a water master’s report. The Water Court issued its order adjudicating Teton Canal’s claims on February 3, 2015. ¶17 The Water Court concluded that Teton Canal’s water right claims for the Eureka Reservoir were properly administered under the 1890 Notice. The court further concluded that later additions to the Eureka Reservoir constituted expansions of the original appropriation that must be reflected in more junior water right claims. The court determined that Teton Canal’s total annual volume for all claims is 14,000 acre feet, that its period of use for all claims runs from April 20 to October 14, and that its historical place of use totals 17,322 acres with a 7,650 acre limit on annual irrigation. Finally, the court determined that Teton Canal’s stockwater claims are valid reflections of historical use. Teton Reservoir appeals. STANDARD OF REVIEW ¶18 We review the Water Court’s findings of fact to determine if they are clearly erroneous. Skelton Ranch, Inc. v. Pondera Cnty. Canal & Reservoir Co., 2014 MT 167 ¶ 26, 375 Mont. 327, 328 P.3d 644 (citation omitted). A finding is clearly erroneous if it is not supported by substantial evidence, if the Water Court misapprehended the effect of the evidence, or if our review of the record convinces us that a mistake has been made. Skelton Ranch, Inc., ¶ 27 (citations omitted). We review the Water Court’s conclusions of law to determine if they are correct. Skelton Ranch, Inc., ¶ 26 (citation omitted). DISCUSSION ¶19 Whether the Water Court erred in determining that off-stream water storage in the Eureka Reservoir was included as part of Teton Canal’s 1890 Notice of Appropriation. ¶20 Existing water rights are those rights that were acquired prior to the Montana Water Use Act’s passage in 1973. Section 85-2-102(12), MCA; Axtell v. M.S. Consulting, 1998 MT 64, ¶ 23, 288 Mont. 150, 955 P.2d 1362. A properly filed statement of claim for an existing water right “constitutes prima facie proof of its content ....” Section 85-2-227(1), MCA; Rule 19, W. R. Adj. R. This prima facie validity may be overcome if the objector “prove[s] by a preponderance of the evidence that the elements of the original claim ‘do not accurately reflect the beneficial use of the water right as it existed prior to July 1, 1973.’ ” Nelson v. Brooks, 2014 MT 120, ¶ 37, 375 Mont. 86, 329 P.3d 558 (quoting W. R. Adj. R. 19). Since the Montana Water Use Act recognizes existing water rights, “pre-1973 law is still applicable in determining the existence and validity of water rights acquired before 1973.” Axtell, ¶ 25. ¶21 Teton Canal properly filed its statement of claim for existing water rights in 1982; accordingly, the claim serves as prima facie evidence that the information contained in it is true. Section 85-2-227(1), MCA; Rule 19, W. R. Adj. R. It was therefore Teton Reservoir’s “burden to show by a preponderance of the evidence that the information in the claim is incorrect.” Marks v. 71 Ranch, Ltd. P’ship, 2014 MT 250, ¶ 16, 376 Mont. 340, 334 P.3d 373 (citation omitted). ¶22 On appeal, Teton Reservoir asserts that Teton Canal has no right to off-stream water storage in the Eureka Reservoir under the 1890 Notice because the evidence shows the following: that Teton Canal’s predecessors developed the diversion point described in the 1890 Notice; that the 1890 Notice did not contemplate the Eureka Reservoir; that Teton Canal did not proceed with reasonable diligence in developing the Eureka Reservoir; and that Teton Canal’s priority date for the Eureka Reservoir is based on the 1936 Declaration. The 1890 Notice and the Eureka Reservoir ¶23 In concluding that the 1890 Notice included off-stream storage in the Eureka Reservoir, the Water Court relied, in part, on the following findings: that Teton Canal’s predecessors developed the 1890 Notice diversion point by building the Eureka Canal; and that Teton Canal’s predecessors intended for the 1890 Notice to include the Eureka Reservoir. Teton Reservoir asserts that both of these findings are clearly erroneous. ¶24 Teton Reservoir first challenges the Water Court’s finding that it failed to present sufficient evidence demonstrating that Teton Canal’s predecessors developed the diversion point described in the 1890 Notice. ¶25 The Water Court addressed the development of the diversion point identified in the 1890 Notice in a single paragraph. The court found that the “actual point of diversion developed by [Teton Canal’s predecessors under the 1890 Notice] was located about two miles further up the Teton River” than the diversion point described in the 1890 Notice. The court identified the actual diversion point developed under the 1890 Notice as the northeast quarter of the northwest quarter of the northeast quarter of Section 35, Township 25 North, Range 6 West. The court cited to the 1892 plat map and to Teton Canal’s expert’s testimony in finding that the change in the point of diversion “was necessary to develop the Eureka Reservoir site.” Based on these findings, the court concluded, “It does not appear [Teton Canal] ever developed the Section 31 diversion point referenced by the [1890 Notice].” ¶26 Teton Reservoir argues that the Water Court’s finding is not supported by substantial evidence and that the court overlooked the evidence establishing that Teton Canal’s predecessors developed the 1890 Notice diversion point by building the Glendora Canal. Teton Canal asserts generally that the Water Court’s findings are not clearly erroneous, but it offers no record support for the court’s finding that the diversion point described in the 1890 Notice was never developed. In fact, Teton Canal acknowledges in its briefing that “from the record presented, it appears that both the Eureka Canal and the Glendora Canal were constructed by [Teton Canal’s] predecessors between April, 1890 and April, 1892.” ¶27 The evidence establishes that the Glendora Canal is the diversion point described in the 1890 Notice. The 1892 plat map describes the Glendora Canal’s diversion point as “beginning at a point on the north bank of the Teton River ... from which the quarter Section corner on the south side of Sec[tion] 31, T[ownship] 25 N[orth], R[ange] 5 W[est] bears N[orth] 47° 25’ W[est] 698 feet distant ....” This description corresponds to the diversion point described in the 1890 Notice — “a point upon [the Teton River’s] north bank six hundred sixty five feet from the [southeast] corner of the [southwest quarter] of Section thirty[-]one (31) Township Twenty-five (25) North of Range five (5) West....” ¶28 Other evidence in the record clearly demonstrates that Teton Canal’s predecessors constructed the Glendora Canal and therefore developed the diversion point described in the 1890 Notice. A history of Teton Canal written by a past President states that after filing the 1890 Notice, Teton Canal’s predecessors “immediately began building a ditch” that later would be named the Glendora Canal. On the 1892 plat map, the engineer for Teton Canal’s predecessor affirmed that the Glendora Canal had “been constructed under his supervision ....” The GLO representative who examined the Glendora Reservoir site in 1909 reported that “[t]his reservoir is a depression, natural lake bed, thru which main ditch of the Company runs ....” The ditch to which the representative referred is identified on the 1892 plat map as the Glendora Canal. ¶29 Testimony from Teton Canal’s witnesses further demonstrates that Teton Canal’s predecessors developed the diversion point described in the 1890 Notice by constructing the Glendora Canal. Although Teton Canal’s expert, John Westenberg, testified that the Eureka Canal’s construction was necessary to develop the Eureka Reservoir site, he also testified that the Glendora Canal is still “visible on the ground” and that “there’s some remaining infrastructure connecting it with even the current ditch.” Charles Crane, Teton Canal’s Secretary-Treasurer, testified that the Glendora Canal was built and that “there’s still remnants of it up there.” Crane further testified that although the Glendora Reservoir is no longer part of Teton Canal’s irrigation system, the reservoir is still used by a Teton Canal stockholder. This stockholder fills the Glendora Reservoir out of Teton Canal’s current canal. ¶30 There is substantial, uncontradicted evidence in the record, some from Teton Canal’s own witnesses, establishing that Teton Canal’s predecessors developed the Glendora Canal at the diversion point described in the 1890 Notice. The 1892 plat map and John Westenberg’s testimony do not contradict this evidence and do not support the Water Court’s finding that Teton Canal’s predecessors never developed the diversion point referenced in the 1890 Notice. Accordingly, the Water Court’s finding on this issue is clearly erroneous. ¶31 The Water Court’s finding that Teton Canal’s predecessors intended to include the Eureka Reservoir in the 1890 Notice depended, in part, on its finding that the diversion point referenced in the 1890 Notice was never developed and that it was relocated as necessary to develop the Eureka site. Teton Reservoir asserts that the evidence demonstrates that Teton Canal’s predecessors did not intend that the 1890 Notice include the Eureka Reservoir and that the Eureka Canal constituted a new point of diversion that was intended to be included under the 1891 Notice. ¶32 Teton Reservoir’s objections to the application of the 1890 Notice are “governed by pre-1973 law.” Marks, ¶ 15. As such, the 1885 statutory appropriation act applies to the 1890 Notice. Shammel v. Vogl, 144 Mont. 354, 367, 396 P.2d 103, 110 (1964). In order for Teton Canal’s claims to relate back to the 1890 Notice under the 1885 act, Teton Canal must have complied with the act’s requirements. Section 81-812, RCM (1947) (repealed 1973) (providing in part that “by complying with the provisions of this chapter the right to the use of the water shall relate back to the date of posting the notice”); Bailey v. Tintinger, 45 Mont. 154, 171, 122 P. 575, 581 (1912) (concluding that “before the [1885 act] makes applicable the doctrine [of relation back], a completed appropriation must have been effected”). ¶33 One of the essential statutory requirements under the 1885 act was properly filing a notice of appropriation. Mont. Dep’t of Natural Res. & Conservation v. Intake Water Co., 171 Mont. 416, 430, 558 P.2d 1110, 1118 (1976) (hereafter Intake) (stating that “the posting and filing of the notice of appropriation is a condition precedent to a valid appropriation”). Among other things, a notice of appropriation provides other water users with notice of the appropriator’s intent. We have long recognized the importance of an appropriator’s intent at the time of appropriation. E.g., Power v. Switzer, 21 Mont. 523, 530, 55 P. 32, 35 (1898) (concluding that “the intention of the claimant is therefore a most important factor in determining the validity of an appropriation of water”); Bailey, 45 Mont. at 178, 122 P. at 583 (concluding that if the 1885 act “does not by express terms, it does by fair implication, require that, at the time of taking the initial steps, the claimant must have an intention to apply the water to a useful or beneficial purpose”); Wheat v. Cameron, 64 Mont. 494, 501, 210 P. 761, 763 (1922) (determining whether an appropriation was completed and concluding that a “claimant’s intent at the time of appropriation must be determined by his act and by surrounding circumstances, its actual and contemplated use, and the purpose thereof’). ¶34 The Water Court found that Teton Canal’s predecessors intended to develop multiple reservoirs, including the Eureka Reservoir, when they filed the 1890 Notice. In making this finding, the court relied on the 1890 Notice and the 1892 plat map. The court reasoned that the 1892 plat map showed “an extensive system of canals and ditches” and both the Eureka and Glendora Reservoirs. The court further found that Teton Canal established that the 1890 Notice included the development of two small reservoirs and the eventual development of the Eureka Reservoir. Based on these findings, the court ultimately found that “[a] preponderance of the evidence shows that a sizable reservoir at the Eureka site was part of the intent of the [1890 Notice].” ¶35 On appeal, Teton Canal contends that the Water Court did not err in finding that its predecessors contemplated storage in the Eureka Reservoir under the 1890 Notice. Teton Canal asserts that substantial evidence supports the court’s findings that Teton Canal’s predecessors developed and maintained off-stream water storage under the 1890 Notice. The Eureka Reservoir, argues Teton Canal, simply consolidated the company’s longstanding off-stream storage practices under the 1890 Notice into one place. Teton Canal relies on the 1890 Notice, the 1892 plat map, the GLO representatives’ reports, and its stockholder and director meeting minutes from the 1920s and 1930s to support its assertion that the Water Court’s findings are supported by substantial evidence. ¶36 Under the 1885 act, the 1890 Notice serves as prima facie evidence that the information contained in it is true. Section 89-814, RCM (1947) (repealed 1973). The evidence establishes that Teton Canal’s predecessors intended the Glendora Canal and the Glendora Reservoir to be included under the 1890 Notice. As we concluded above, Teton Canal’s predecessors developed the diversion point described in the 1890 Notice by constructing the Glendora Canal. Teton Canal’s predecessors stated in the 1890 Notice that they had diverted water by means of a ditch that “carries or conducts 3000 inches of water from” the Teton River. Over a decade after Teton Canal’s predecessors filed the 1890 Notice, another predecessor, Russell Shepherd, asserted in his answer to the Perry complaint that the ditch diverting water under the 1890 Notice conveyed “3,000 inches of the water” from the Teton River. The effect of this evidence is that Teton Canal’s predecessors intended to, and eventually did, convey 3,000 inches of water in the Glendora Canal under the 1890 Notice. ¶37 The 1890 Notice further indicates that the “special purpose for which [the appropriated] water is intended to be used ... is for gathering said waters in a reservoir and using it to irrigate adjacent lands ....” (Emphases added.) The 1892 plat map depicts the Glendora Canal running to the Glendora Reservoir; accordingly, the evidence demonstrates that the reservoir to which the 1890 Notice referred is the Glendora Reservoir. Other evidence in the record supports the conclusion that the Glendora Reservoir is the reservoir Teton Canal’s predecessors intended to develop under the 1890 Notice. The history of Teton Canal written by a past President states that the Glendora Canal “was completed to the small lake” that eventually would be known as the Glendora Reservoir. The GLO representative who examined the Glendora Reservoir site in 1909 confirmed that the Glendora Canal ran to the reservoir that was contained by a dam 450 feet long and five feet high. The effect of this evidence is that Teton Canal’s predecessors intended to, and eventually did, develop and maintain off-stream water storage in the Glendora Reservoir under the 1890 Notice. ¶38 While the 1892 plat map depicts the Eureka Canal running to the not-yet-developed Eureka Reservoir, the evidence establishes clearly that Teton Canal’s predecessors intended this portion of its irrigation system to be included under the 1891 Notice. The engineer for Teton Canal’s predecessor affirmed on the 1892 plat map that the Eureka Canal was “constructed under his supervision ....” He identified the Eureka Canal’s diversion point as “beginning at a point on the north bank of the Teton River in the Northeast quarter (N.E. Vi) of Section 35, T[ownship] 25 N[orth], R[ange] 6 W[est] ... from which the Northeast corner of Sec[tion] 36, T[ownship] 25 N[orth], R[ange] 6 W[est] bears N[orth] 85° 58’ E[ast] 6641 feet distant.” In the 1891 Notice, Teton Canal’s predecessors described the point of diversion as beginning “upon [the Teton River’s] north bank about 1015 feet south 34° west from the [northwest] corner of Section (36) Thirty[-]six T[ownship] 25 North, R[ange] 6 West....” The diversion point described in the 1891 Notice corresponds to the Eureka Canal’s diversion point described on the 1892 plat map and is approximately two miles upstream from the Glendora Canal’s diversion point. ¶39 Under the 1885 act, the 1891 Notice serves as prima facie evidence that the information contained in it is true. Section 89-814, RCM (1947) (repealed 1973). Teton Canal’s predecessors claimed water under the 1891 Notice “for irrigating, reservoirs and other purposes.” (Emphasis added.) The 1891 Notice specifies that the diversion ditch “carries or conducts Ten Thousand inches of water” from the Teton River. In his answer to the Perry complaint, Shepherd asserted that the ditch diverting water under the 1891 Notice conveyed the “amount of ten thousand inches” of water from the Teton River. Additionally, the GLO representative who examined the Eureka Reservoir site in 1909 reported that a large “feeder ditch” ran from the Teton River to the undeveloped reservoir site. The effect of this evidence is that Teton Canal’s predecessors intended to, and eventually did, convey water in the Eureka Canal under the 1891 Notice. ¶40 Although the 1892 plat map reveals the intent of Teton Canal’s predecessors to develop and maintain off-stream water storage in the Eureka Reservoir by way of the Eureka Canal, this intent is expressed in the 1891 Notice, which undisputedly did not survive the Perry decree. The Water Court misapprehended the effect of the nullified 1891 Notice. When taken together with the two-mile distance between the points of diversion, and the fact that the 1890 Notice’s diversion point was undisputedly put to use in the Glendora Canal, the court’s finding that the Eureka Reservoir has a priority date based on the 1890 Notice is clearly erroneous. ¶41 Teton Canal’s actions in the 1920s and 1930s further establish Teton Canal’s understanding that the Eureka Reservoir was not included under the 1890 Notice. Teton Canal’s stockholders approved “putting $400 per share” toward developing the Eureka Reservoir at a September 2, 1936 special stockholders’ meeting. The discussion of “securing water rights” at this same meeting demonstrates Teton Canal’s recognition that developing the Eureka Reservoir required a new appropriation. Moreover, Teton Canal’s filing of the 1921 Notice and the Water Conservation Board’s filing of the 1936 Declaration further demonstrate that Teton Canal understood that new water right claims were needed for the Eureka Reservoir’s development. The proposed reservoir’s legal descriptions in both the 1921 Notice and the 1936 Declaration generally correspond to the Eureka Reservoir’s current location and its location as shown on the 1892 plat map. The diversion point described in the 1921 Notice corresponds with both the Eureka Canal’s diversion point described on the 1892 plat map and the diversion point described in the 1891 Notice. The affidavit signed by Teton Canal’s President in 1982 demonstrates that the diversion point described in the 1936 Declaration was meant to correspond to the Eureka Canal’s diversion point as described on the 1892 plat map, the 1891 Notice, and the 1921 Notice. ¶42 The Perry decree extinguished all rights claimed by Teton Canal except those preserved under the 1890 Notice. The 1921 Notice and the 1936 Declaration therefore confirm Teton Canal’s understanding that it lost its claim under the 1891 Notice to the Eureka Reservoir through the Perry decree and that the Eureka Reservoir was not part of the 1890 Notice. ¶43 A thorough review of the record convinces us that the Water Court misapprehended the effect of the evidence in finding that a sizable reservoir at the Eureka site was part of the 1890 Notice’s intent. Although Teton Canal’s predecessors contemplated and eventually developed an extensive system of canals and reservoirs — as detailed by the 1892 plat map — the evidence establishes that the Eureka Reservoir was intended to be developed under the 1891 Notice and not the 1890 Notice. Accordingly, the Water Court’s conclusion that the Eureka Reservoir is properly administered as part of Teton Canal’s water right claims under the 1890 Notice is incorrect. Reasonable Diligence and the Eureka Reservoir’s Priority Date ¶44 Teton Canal contends that “even if the [1890 Notice] was initially developed at the Glendora Canal diversion point..., nothing under the law prevented [Teton Canal’s] predecessors from moving the diversion point and diverting water under the [1890 Notice] from either the Glendora or the Eureka Canal diversions, or both.” In other words, Teton Canal asserts that off-stream storage in the Eureka Reservoir is included under the 1890 Notice because Teton Canal simply moved the 1890 Notice’s diversion point two miles upstream following the Perry decree. Teton Canal ignores Teton Reservoir’s contention that the 1891 Notice, which the Perry decree extinguished, sets forth Teton Canal’s original claim for the Eureka Reservoir. Moreover, independent of our conclusion that the 1890 Notice does not include the Eureka Reservoir, the evidence establishes that Teton Canal and its predecessors failed to proceed with reasonable diligence in developing the Eureka Reservoir site. Therefore, regardless of Teton Canal’s contention that it moved the 1890 Notice’s diversion point, the Eureka Reservoir’s completion in 1937 could not relate back to the 1890 Notice’s filing. ¶45 Under the 1885 statutory appropriation act, Teton Canal’s 1890 Notice could not “ripen into a valid appropriation until the... statutory requirements for a completed appropriation [were] met.” Intake, 171 Mont. at 431, 558 P.2d at 1118. Accordingly, the priority date for the Eureka Reservoir could not relate back unless Teton Canal showed that it “proceed[ed] to prosecute the excavation or construction of the work by which the water appropriated [was] to be diverted, and ... prosecute[d] the same with reasonable diligence to completion.” Section 89-811, RCM (1947) (repealed 1973). In Intake, we held that under § 89-811, RCM, an appropriator is not required to commence “actual on-site excavation or construction of the diversion works” to preserve its priority date, but the appropriator must demonstrate that it made a “steady on-going effort in good faith ... to prosecute the construction of the project under the circumstances ....” Intake, 171 Mont. at 436, 558 P.2d at 1121. We based this holding on the following passage from a leading water law treatise: What constitutes due diligence is a question of fact to be determined by the court in each case. Diligence does not require unusual or extraordinary effort, but it does require a steady application of effort — that effort that is usual, ordinary and reasonable under the circumstances. * * * So long as the applicant prosecutes the construction of works in good faith with a steady effort, he should be held to have prosecuted with diligence. Intake, 171 Mont. at 434, 558 P.2d at 1120 (quoting 6 Waters and Water Rights § 514.1, 308-309 (Robert Emmet Clark ed., 1972)). ¶46 The Water Court cited this same passage from Intake in concluding that Teton Canal proceeded with reasonable diligence in developing the Eureka Reservoir site. The court found that Teton Canal’s predecessors “aggressively pursued” developing reservoirs under the 1890 Notice. The court further found that “while [Teton Canal] controlled the Eureka site and ran its canal through a natural lake bed at this location, it is not clear if [Teton Canal] could actually store water at the Eureka site prior to 1936.” The court noted that Teton Canal’s record of director and shareholder meeting minutes begins in 1920; therefore, “there is a significant period of time with no evidence regarding [Teton Canal’s] progress towards developing Eureka Reservoir.” In concluding that Teton Canal proceeded with reasonable diligence in developing the Eureka Reservoir, the court relied on the following evidence: the 1892 plat map; the GLO representatives’ reports; Teton Canal’s director and stockholders’ meeting minutes from the 1920s and 1930s; and historical reservoir development in the area by Teton Reservoir and Farmers Canal. ¶47 Based on our review of the record, we conclude that Teton Canal failed to proceed with reasonable diligence in developing the Eureka Reservoir site until the mid-1930s. The evidence shows that after filing the 1890 Notice, Teton Canal’s predecessors completed constructing the Eureka Canal in 1892. Teton Canal’s predecessors also filed an application and plat map with the GLO in 1892. In 1909, a GLO special agent examined the Eureka Reservoir site and reported in a February 1910 letter that the site was “a natural lake bed ....” The agent further noted that the site “could also be used as a reservoir ....” Although the agent recommended “final approval of this reservoir site,” the letter demonstrates that Teton Canal had not yet developed the reservoir. ¶48 Over ten years later, in September 1921, Teton Canal held a special stockholders’ meeting at which “the possibilities of building a reservoir” were discussed. The stockholders approved getting an engineer “to find out the [reservoir’s] actual costs and water storage” during the same meeting. Teton Canal subsequently filed the 1921 Notice and attempted to secure a private loan to finance the Eureka Reservoir’s development. These efforts were unsuccessful, so Teton Canal’s Board of Directors approached the stockholders about creating an irrigation district to finance the reservoir’s construction. At a July 29, 1922 special stockholders’ meeting, Teton Canal’s stockholders rejected the proposal to create an irrigation district to finance the Eureka Reservoir’s development. The stockholders ultimately voted to form a committee in November 1922 “to do the best they can without any expense to the company” to explore options for developing the reservoir. The committee was to report at the annual stockholders’ meeting; however, the minutes from the January 13, 1923 annual stockholders’ meeting do not mention any report by a committee on the reservoir. There is no record of any actions taken by the committee and the next mention of the reservoir site came in December 1926 — after questions were raised regarding Teton Canal’s rights in the reservoir site. ¶49 In November 1926, a GLO division inspector investigated the site and reported that “no reservoir has been built where it was intended to construct the Eureka reservoir ....” The inspector noted that the Secretary of Teton Canal did “not possess the fund of information about this project, one might expect from an active officer, he expressed the opinion that [Teton Canal] was interested in the Eureka site and probably would use it later.” The inspector further reported that Teton Canal “employs no engineer, and to obtain from [Teton Canal’s Secretary] any definite dependable information was rather difficult, for the reason that he does not possess it.” The inspector went on to state, “I am frank to say that an authoritative dependable record, showing complete title to this grant, can be had only in an abstract, and I think [Teton Canal] should be required to furnish one.” The inspector recommended that Teton Canal should “state what their intentions are as to the Eureka site,” and suggested that the GLO “call on [Teton Canal] to file proof of ownership, and proof of construction” of the Eureka Reservoir. In response to the GLO’s report, questions were raised at the January 1927 annual stockholders’ meeting about “what was being done to protect the Company’s title to the [Eureka Reservoir] site near the river in Sec[tion] 31-T[ownship] 25.” The minutes reflect that “[t]he general opinion was that ... [Teton Canal’s] title to the reservoir site was good and was not subject to cancellation.” ¶50 Nearly seven years later, at a January 1934 annual stockholders’ meeting, Teton Canal’s stockholders again discussed developing a reservoir. At this meeting, the stockholders approved forming a committee to see what could be done “about putting [a] reservoir in any appropriate location.” At a September 2, 1936 special stockholders’ meeting, Teton Canal’s stockholders finally approved “putting $400 per share” toward developing a reservoir. The stockholders approved appointing a committee and holding another special meeting for the “purpose of investigating building of Reservoir or securing water rights” at the same meeting. At the September 19, 1936 special stockholders’ meeting, the stockholders voted to “apply to [the Water Conservation Board] for [a] loan of $25,000 for building Reservoir and securing land for same and other expenses in connection of same.” At this same meeting, the stockholders voted to turn over the reservoir site to the Water Conservation Board. That Board subsequently filed the 1936 Declaration. It ultimately took the Water Conservation Board’s involvement in the project to finally complete the Eureka Reservoir in 1937 — over forty-five years after Teton Canal’s predecessors filed the 1890 Notice. ¶51 While reasonable diligence does not require that Teton Canal undertook “unusual or extraordinary effort” in completing the Eureka Reservoir, it does require that Teton Canal made a “steady on-going effort in good faith ... to prosecute the construction” of the reservoir. Intake, 171 Mont. at 434, 436, 558 P.2d at 1120-1121. The record establishes that, although Teton Canal and its predecessors maintained title to the site, they did not undertake a steady, on-going effort in good faith to develop the Eureka Reservoir until the mid-1930s. ¶52 The available evidence shows that after taking the initial steps of filing the 1890 and 1891 Notices, developing the Eureka Canal, and filing the application and 1892 plat map with the GLO, Teton Canal did not discuss building a reservoir at the site until 1921. The 1926 GLO inspector’s report makes clear that site development had not occurred in the thirty-plus years since Teton Canal’s predecessors took the initial steps. Although Teton Canal filed the 1921 Notice for the Eureka Reservoir site, Teton Canal’s stockholders ultimately rejected a proposal to fund the site’s development. Moreover, Teton Canal’s stockholders were unwilling to commit “any expense to the company” to even explore building a reservoir in 1922. ¶53 The 1926 GLO inspector’s report indicates that one of the few efforts that Teton Canal’s predecessors made to develop the site — filing the application and plat map with the GLO — was being called into question due to Teton Canal’s lack of progress. The report also demonstrates that Teton Canal’s own Secretary did not possess any “definite dependable information” regarding the Eureka Reservoir’s development. The Secretary lacked this information only a few years after Teton Canal’s shareholders discussed the site’s development, filed the 1921 Notice for the reservoir, rejected a proposal to fund the reservoir’s construction, and formed a committee to explore options for developing the site. The Secretary did convey to the GLO representative that Teton Canal was “interested” in the site; he also indicated that Teton Canal would “probably use it later.” ¶54 Based not only on the dearth of evidence between the 1892 plat map and the 1921 minutes of the Teton Canal stockholders’ meetings, but also on the shareholders’ recorded actions and inactions, we conclude that the Water Court misapprehended the effect of the evidence when it found that Teton Canal “aggressively pursued” the development of the Eureka Reservoir. Although there were sporadic and isolated actions in the decades following the 1890 and 1891 Notices, the shareholders expressly rejected a plan in 1922 that would have moved the project forward^Four years later, an active officer of Teton Canal did not know about*1 plans for the reservoir’s development and merely expressed a possible interest in the site. The evidence therefore establishes that Tetbn Canal failed to prosecute the Eureka Reservoir’s development with reasonable diligence following its first Notices of Appropriation. ¶55 Since Teton Canal’s claim cannot be staked to the 1890 Notice or to the nullified 1891 Notice, the ihquiry turns to what priority date should be assigned to the Eureka Reservoir. Teton Reservoir asserts that the Eureka Reservoir should be decreed a December 3, 1936 priority date under the 1936 Declaration. It bases its argument on three grounds: the Eureka Reservoir was not intended as part of the 1890 Notice; the Eureka Reservoir was not developed with due diligence; and even if the reservoir had been contemplated as part of the 1890 Notice and pursued with reasonable diligence, the current reservoir is much larger than the reservoir reflected on the 1892 plat map. ¶56 Teton Canal has not made an alternative argument that any date other than the April 18, 1890 priority date should apply. The evidence establishes that the 1890 Notice did not contemplate the Eureka Reservoir and that Teton Canal failed to prosecute the Eureka Reservoir’s development with reasonable diligence until the mid-1980s. Accordingly, the Water Court must determine Teton Canal’s priority date for the Eureka Reservoir in accordance with this evidence. CONCLUSION ¶57 The Water Court’s Order regarding Teton Canal’s water right claims to the Eureka Reservoir is reversed. We remand to the Water Court to assign a new priority date to Teton Canal’s rights to the Eureka Reservoir and for further proceedings consistent with this Opinion. CHIEF JUSTICE McGRATH, JUSTICES SHEA, WHEAT and RICE concur. The map shown is a portion of the 1892 plat map included in the record. We have marked the diversion points with arrows for ease of reference. Although the legal descriptions in the 1890 Notice and the 1892 plat map are not identical, each describes a point in the northeast quarter of the northwest quarter of Section 6, Township 24 North, Range 5 West, that corresponds to the point depicted on the plat map. The “Eureka Canal” is also referred to as the “Burton Ditch” in various documents throughout the record. Both parties refer to the canal as the “Eureka Canal” in their briefing and we will do the same. Although the legal descriptions in the 1891 Notice and the 1892 plat map are not identical, each describes a point in the northwest quarter of the northeast quarter of Section 35, Township 25 North, Range 6 West, that corresponds to the point depicted on the plat map. The Temporary Preliminary Decree describes the point of diversion as the northeast quarter of the northwest quarter of the northeast quarter of Section 35, Township 25 North, Range 6 West, the same point described on both the 1892 plat map and the 1891 Notice. The priority dates the Water Court assigned to these expansions are not challenged on appeal. This location corresponds with the diversion point described in the 1891 Notice.
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JUSTICE COTTER delivered-the Opinion of the Court. ¶1 Following a successful petition under Article II, section 9 of the Montana Constitution for disclosure of certain documents, J.G. Shockley (Shockley) filed a motion for attorney fees and costs under § 2-3-221, MCA. The District Court granted Shockley his costs but denied his request for attorney fees. Shockley appeals the denial of his motion for an award of attorney fees, and requests that this Court impose upon district courts clear guidelines for denying motions for attorney fees in right to know cases. We decline to articulate such guidelines, and we affirm the District Court. ISSUE ¶2 We address the following issue on appeal: Did the District Court abuse its discretion by declining to award Shockley attorney fees under § 2-3-221, MCA? FACTUAL AND PROCEDURAL BACKGROUND ¶3 This is the second time this matter has come before us. In Shockley v. Cascade County (Shockley I), 2014 MT 281, 376 Mont. 493, 336 P.3d 375, we held that Shockley had standing under Article II, section 9 of the Montana Constitution to assert a claim against Cascade County for disclosure of certain documents. Shockley was seeking disclosure of a settlement agreement entered into by Jason Carroll (Carroll), a Cascade County detention officer, Carroll’s employer, Cascade County (the County), and Carroll’s collective bargaining unit, the International Brotherhood of Teamsters, Local 2 (the Union). Shockley I, ¶ 3. Early in the litigation, the County admitted it had no objection to disclosure of the settlement agreement. Then on July 25, 2013, the District Court entered Carroll’s default. From July 2013 onward, the only barrier to disclosure of the settlement agreement was the resistance of the Union. In opposing disclosure, the Union relied on the confidentiality provision of the settlement agreement, to which it was a party. ¶4 Following our decision in Shockley I, the District Court balanced the public’s right to know against the individual privacy interests at stake, granted Shockley’s motion, and ordered the County to disclose the settlement agreement. As the prevailing party, Shockley then filed a motion under § 2-3-221, MCA, for an award of costs and attorney fees. In his motion for fees, Shockley requested only the fees incurred after Carroll’s default was entered and the County conceded that it had no objection to release of the settlement agreement. Thus, his fee request was directed solely against the Union. The Union opposed Shockley’s motion. The District Court awarded Shockley his costs but denied his request for attorney fees. Shockley appeals the denial of his request for attorney fees. STANDARD OF REVIEW ¶5 We review for abuse of discretion a district court’s decision to award or deny attorney fees. Billings High Sch. Dist. No. 2 v. Billings Gazette, 2006 MT 329, ¶ 23, 335 Mont. 94, 149 P.3d 565 (citing Pengra v. State, 2000 MT 291, ¶¶ 24, 27, 302 Mont. 276, 14 P.3d 499). DISCUSSION ¶6 Did the District Court abuse its discretion by declining to award Shockley attorney fees under § 2-3-221, MCA? ¶7 After successfully petitioning under Article II, section 9 for disclosure of the settlement agreement, Shockley sought an award of attorney costs and fees under § 2-3-221, MCA. Section 2-3-221, MCA, provides that “[a] person alleging a deprivation of rights who prevails in an action brought in district court to enforce the person’s rights under Article II, section 9, of the Montana constitution may be awarded costs and reasonable attorney fees.” An award of attorney fees for prevailing parties in suits brought under Article II, section 9 is discretionary. Yellowstone Cnty. v. Billings Gazette, 2006 MT 218, ¶ 30, 333 Mont. 390, 143 P.3d 135. ¶8 Although we have declined to articulate firm guidelines for a district court’s denial of a request for attorney fees under § 2-3-221, MCA, “it is well-established that outright denial of a motion for attorney fees without rationale, is ‘not an exercise of discretion, but is an abuse of that discretion.’ ” Yellowstone Cnty., ¶ 30 (citing Matter of Investigative Records, 265 Mont. 379, 383, 877 P.2d 470, 472 (1994)). In his brief in support of his motion for attorney fees, Shockley contended that a defendant’s acting reasonably and in good faith has not been held to be a sufficient defense to a request for attorney fees and costs in right to know cases. See e.g. Bozeman Daily Chronicle v. City of Bozeman Police Dep’t, 260 Mont. 218, 232, 859 P.2d 435, 443-44 (1993); The Associated Press v. Board of Pub. Educ., 246 Mont. 386, 393, 804 P.2d 376, 380 (1991). Nevertheless, the District Court determined that “the unique procedural history of this case takes this matter beyond mere reasonableness and good faith on the part of the Union.” The District Court granted Shockley his costs but denied his request for attorney fees, on the grounds that the “extraordinary development of case law evolving as the case was in progress [makes it] hard to find any justice in assessing attorney’s fees against the Union.” ¶9 We decline to reach the question of whether the District Court’s rationale for denying fees satisfies abuse of discretion review. Instead, we conclude that an award of attorney fees under any rationale is inappropriate in this case because the sole entity from which such fees are sought — the Union — is not a public or governmental body. As we have said before, “[w]e will affirm a district court decision if the right result was reached, though for the wrong reason, and we do so here.” Hinebauch v. McRae, 2011 MT 270, ¶ 25, 362 Mont. 358, 264 P.3d 1098 (citing Wells Fargo Bank v. Talmage, 2007 MT 45, ¶ 23, 336 Mont. 125, 152 P.3d 1275). ¶10 Article II, section 9 of the Montana Constitution, entitled “Right to know,” ensures that “[n]o 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.” Review of a claim brought under the right to know is a three-step process. First, we consider whether the provision applies to the particular political subdivision against whom enforcement is sought. Second, we determine whether the documents in question are “documents of public bodies” subject to public inspection. Finally, if the first two requirements are satisfied, we decide whether a privacy interest is present, and if so, whether the demand of individual privacy clearly exceeds the merits of public disclosure. Becky v. Butte-Silver Bow Sch. Dist. No. 1, 274 Mont. 131, 136, 906 P.2d 193, 196 (1995). The District Court conducted this analysis in determining whether to grant Shockley’s petition for disclosure of the settlement agreement. But the requirements are also relevant to a determination of whether to award attorney fees to a party who prevailed in a right to know action. ¶11 We have in the past affirmed a district court’s denial of a motion for attorney fees when the party that objected to disclosure on privacy grounds was not a public body. In Pengra v. State, 2000 MT 291, 302 Mont. 276, 14 P.3d 499, we concluded that the district court did not abuse its discretion when it declined the petitioner’s request for attorney fees, and we noted that “[t]he State has not asserted a right of privacy — that right has instead been asserted in this case by Pengra, a private party.” Pengra, ¶ 26. As in Pengra, the party in this case asserting a right to privacy and against whom attorney fees are being sought is not a public or governmental body. Rather, that party, the Union, is a private collective bargaining group. As a private entity, the Union is not subject to Article II, section 9 of the Montana Constitution. Bryan v. Yellowstone Cnty. Elementary Sch. Dist. No. 2, 2002 MT 264, ¶ 25, 312 Mont. 257, 60 P.3d 381 (explaining that Article II, section 9 applies to public bodies and governmental agencies and that a “public or governmental body” is “a group of individuals organized for a governmental or public purpose.”). For this reason the District Court did not abuse its discretion in denying Shockley’s motion for attorney fees. ¶12 On a final note, we acknowledge we are resolving this case on grounds not addressed by the parties on appeal. Although we generally do not address issues not raised by the parties, Pinnow v. Mont. State Fund, 2007 MT 332, ¶ 15, 340 Mont. 217, 172 P.3d 1273 (citing In re Parenting of D.A.H., 2005 MT 68, ¶ 7, 326 Mont. 296, 109 P.3d 247), we have done so out of necessity before, see e.g. State v. Dickinson, 2008 MT 159, ¶¶ 20-24, 343 Mont. 301, 184 P.3d 305 (determining “that the question of whether items would have been inevitably discovered pursuant to execution of a valid search warrant is one we can answer sua sponte”); Pinnow, ¶¶ 15-17 (determining sua sponte whether a district court judge “had authority to assume jurisdiction over this case”); Knowlton v. Knowlton, 193 Mont. 448, 450, 632 P.2d 336, 337 (1981) (sua sponte setting aside an order granting a modification of custody because “the parties and the trial court failed to abide by” an applicable statute). We do so here because the parties and the District Court failed to acknowledge that right to know fees are recoverable under § 2-3-221, MCA, only when the prevailing party is successful in enforcing his rights under Article II, section 9 of the Montana Constitution, and only against a public body or governmental agency. Were we to resolve this case premised on the rationale adopted by the District Court, our Opinion would by implication suggest that under other circumstances, right to know fees could be recovered against a non-public or non-governmental entity. It is important for purposes of this and future cases to clearly announce that this is not permitted under the law. CONCLUSION ¶13 For the foregoing reasons, we affirm the District Court’s May 13, 2015 Order granting Shockley’s motion for costs but denying his motion for attorney fees. CHIEF JUSTICE McGRATH, JUSTICES McKINNON, BAKER and RICE concur.
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CHIEF JUSTICE McGRATH delivered the Opinion of the Court. ¶1 James Colburn appeals from his October 2013 convictions in Ravalli County District Court of the offenses of incest, sexual intercourse without consent and sexual assault. We reverse the convictions and remand for a new trial. ¶2 We consider the following issues: ¶3 Issue 1: Whether the District Court erred when it disqualified Colburn’s expert witness from testifying at trial. ¶4 Issue 2: Whether the District Court erred in its application of the Rape Shield Law to exclude evidence that Colburn offered at trial. BACKGROUND ¶5 In 2013 the State charged Colburn with two counts of incest, § 45-5-507, MCA; one count of sexual intercourse without consent, § 45-5-503, MCA; and two counts of sexual assault, § 45-5-502, MCA, all felonies. In October 2013 the jury convicted Colburn of all of the charged offenses. In February 2014 the District Court entered judgment sentencing Colburn to terms of imprisonment on each of the convictions. Colburn appeals. STANDARD OF REVIEW ¶6 We review a district court’s rulings on the admission of evidence, including the admission of expert testimony, for abuse of discretion. Beehler v. Eastern Radiological Assoc., 2012 MT 260, ¶ 17, 367 Mont. 21, 289 P.3d 131. We review a district court’s application of a statute to determine whether the application was correct. Beehler, ¶ 17. DISCUSSION ¶7 Issue 1: Whether the District court erred when it disqualified Colburn’s expert witness from testifying at trial. ¶8 Rule 702 of the Montana Rules of Evidence allows a person qualified by knowledge, skill, experience, training or education to testify “in the form of an opinion or otherwise” if “scientific, technical or other specialized knowledge” will assist the jury to understand the evidence or determine a fact in issue. We have encouraged district courts to “construe liberally the rules of evidence so as to admit all relevant expert testimony,” subject to “stringent cross-examination.” State v. Damon, 2005 MT 218, ¶ 19, 328 Mont. 276, 119 P.3d 1194; Beehler, ¶ 23. The District Court determined in this case that expert testimony would be appropriate in assisting the jury to understand issues concerning forensic interview techniques. ¶9 The sexual intercourse without consent and sexual assault charges against Colburn related to incidents between Colburn and a neighbor girl referred to as R.W. Those incidents occurred when she was age eleven. The State called R.W. as a witness at trial. She testified to encounters with Colburn in which he touched her private parts manually and with his penis. The two incest charges related to incidents between Colburn and his own daughter, referred to as C.C., also age eleven. The State called C.C. as a witness at trial. She denied generally that Colburn had done anything wrong to her. ¶10 The State also presented the testimony of Nurse Practitioner Mary Hansen, a clinical supervisor with a children’s advocacy and adult sexual assault program at St. Patrick Hospital in Missoula. She has an undergraduate degree in sociology and a master’s degree in nursing. She is licensed and certified as a pediatric nurse practitioner. She has attended several courses in sexual assault examiner training for nurses, a course in medical assessments of children, as well as attending several conferences in San Diego on child abuse. She testified that a forensic interview is a “structured conversation” with a child who may have been a victim of a crime. She testified that she has been trained in several different schools of forensic interview techniques, including those offered by the American Prosecutor’s Research Institute, by First Witness, and by the American Professional Society on Abuse of Children. She testified that she has “a lot of familiarity with many different models” of forensic interviewing, and that there is no certification program or requirement for forensic examiners. Several times in her testimony she characterized forensic interviewing as both a science and an art that requires “a judgment call [to determine] when you’re done.” ¶ 11 Hansen interviewed both girls and testified that she followed “best practices” in her interviews. Hansen described disclosures that R.W. made to her about sexual incidents with Colburn. Hansen testified that in her opinion R.W.’s statements to her were consistent with those of a child who had experienced sexual abuse. Hansen opined that R.W. “provided details that were sexual knowledge that a child may not have unless they’ve had the experience of sexual abuse.” (Emphasis added.) ¶12 Hansen also testified about her interview with C.C. during which C.C. described inappropriate touching by her father. The prosecution played a video of Hansen’s interview with C.C., which was the major direct evidence to support the incest charges against Colburn. ¶13 Prior to trial Colburn disclosed that he intended to call Dr. Donna Zook as an expert in child psychology and forensic interview techniques, to critique the techniques used by Hansen in her interview of C.C. The State interviewed Zook prior to trial. ¶14 At trial, Zook testified that she had a doctorate degree in clinical psychology and that her training included 2000 hours in a pre-doctoral internship dealing with juvenile offenders as well as a 3000-hour postdoctoral experience with the Golden Triangle Community Mental Health Center in Havre, Montana. She is a member of the American College of Forensic Examiners and is included in the National Register of Health Service Providers. She has taught psychology at the University of Great Falls. Zook testified that she has done hundreds of juvenile interviews as part of psychological assessments or evaluations. She has also done over twenty critiques of forensic interviews conducted by others and has testified as an expert forensic psychologist hundreds of times. ¶15 The defense made an offer of proof that Zook would testify that Hansen used leading or suggestive questions when interviewing C.C., and would describe the result of those questions as reflected in C.C.’s interview. The State objected to Zook’s qualification to criticize Hansen’s interviews with the victims. The District Court became involved in examining Zook as to her qualifications, focusing on her familiarity with an interviewing protocol adopted by the National Institute of Child Health and Human Development (referred to in the record as the “NICHD”). Zook testified that she was familiar with that forensic interviewing protocol, and that while it was only one of several such protocols, it had been developed by using empirical research. She testified that she had not completed a 40-hour course in the protocol offered by the Institute. ¶16 The District Court determined that the area of forensic interviewing techniques was an area that would be appropriate for expert testimony to assist the jury. The District Court further determined that the NICHD interviewing technique was the “gold standard” for forensic interviews of children, and apparently that it was the technique employed by Hansen in her interviews with the victims in this case. Based upon Zook’s lack of specific training in the NICHD interviewing protocol, the District Court concluded that she was “not qualified in this area of NICHD criticism.” The District Court excluded Zook from testifying as an expert witness. ¶17 While the District Court concentrated on whether Zook had been extensively trained in the NICHD interview protocol, Hansen never mentioned that protocol in her testimony. She did not list it as one of the several interview protocols that she had been trained in, and did not testify that she used the protocol in the interview of either victim in this case. Colburn asserts on appeal that the NICHD interview protocol does not appear anywhere in the record except in the District Court’s questioning of Zook’s qualifications. The State does not refute this assertion. ¶18 It is clear to this Court that Zook was qualified by both education and experience to provide a critique of Hansen’s interviewing technique as it related to leading or suggestive questions and the effect that such questions could have on the results. Significantly, neither side contends that any properly-administered child forensic interview should rely upon results obtained through leading or suggestive questions. The District Court “too narrowly conceived the subject matter” at issue here by constraining it to whether Zook was qualified in the NICHD interview protocols. Beehler, ¶ 25. Given the importance of the taped interview following CC’s general denial that Colburn had assaulted her, Zook’s expert opinion about the interview technique was a significant exclusion. The District Court abused its discretion in excluding Dr. Zook from testifying at trial. ¶19 Issue 2: Whether the District Court erred in its application of the Rape Shield Law to exclude evidence that Colburn offered at trial. ¶20 Colburn asserts that his defense to the charges involving R.W. was that the allegations were fabricated. Both before trial and at trial he sought to introduce evidence that R.W. had a motive to fabricate allegations against him, and that there was an alternative source for her knowledge of the details of sexual behavior other than anything he had done. The defense theory was that R.W. used her allegations against Colburn to determine whether her mother would believe her and, if so, to then disclose that her own father had abused her. Similarly, the defense theory was that the source of R.W.’s detailed knowledge of sexual abuse came not from Colburn but from abuse inflicted by her own father. ¶21 The District Court excluded any evidence that R.W. had any sexual encounter with any other person, based upon the Montana Rape Shield Law. That law provides: Evidence concerning the sexual conduct of the victim is inadmissible in prosecutions under this part except evidence of the victim’s past sexual conduct with the offender or evidence of specific instances of the victim’s sexual activity to show the origin of semen, pregnancy or disease that is at issue in the prosecution. Section 45-5-511(2), MCA. The District Court determined that R.W. was absolutely protected by this statute, and that it prohibited introduction of any evidence that she had sexual contact with any other person. ¶22 In 1975, Montana joined most other states by adopting a rape shield law. See Ch. 129, L. 1975. Under the Rape Shield Law, “evidence concerning the sexual conduct of the victim” is inadmissible in a criminal prosecution, with very limited exceptions not at issue here. Section 45-5-511(2), MCA. Montana’s Rape Shield Law is designed to prevent the trial of the charge against the defendant from becoming a trial of the victim’s prior sexual conduct. State v. Higley, 190 Mont. 412, 422, 621 P.2d 1043, 1050-51 (1980). Rape shield laws generally protect victims from being exposed at trial to harassing or irrelevant questions concerning their past sexual behavior. Michigan v. Lucas, 500 U.S. 145, 146, 111 S. Ct. 1743, 1745 (1991); State v. Anderson, 211 Mont. 272, 283, 686 P.2d 193, 199 (1984). The statute reflects a compelling state interest in keeping a rape trial from becoming a trial of the victim. Anderson, 211 Mont. at 283, 686 P.2d at 199. Rape shield laws evolved from society’s recognition that a rape victim’s prior sexual history is irrelevant to issues of consent or the victim’s propensity for truthfulness. Tanya Bagne Marcketti, Rape Shield Laws: Do They Shield the Children?, 78 Iowa L. Rev. 751, 754-55 (1993). ¶23 Although rape shield legislation originally focused on adult rape victims, most jurisdictions also include child victims of sexual abuse within the protections of their rape shield statutes. The policies underlying the application of rape shield statutes to adult victims apply to child victims, as well: rape shield statutes eliminate the need for victims to defend incidents in their past and minimize the trauma of testifying. Marcketti at 756. ¶24 Conflict can arise between rape shield statutes and a defendant’s rights to confront his accuser and to present evidence at trial in defense of the charge against him. A defendant charged with a crime has a right to confront his accusers, arising from the Sixth Amendment to the United States Constitution and Article II, Section 24 of the Montana Constitution. State v. MacKinnon, 1998 MT 78, ¶ 33, 288 Mont. 329, 957 P.2d 23. A defendant has a similarly-based right to present evidence in his defense. State v. Johnson, 1998 MT 107, ¶ 22, 288 Mont. 513, 958 P.2d 1182. ¶25 Neither the Rape Shield Law nor the defendant’s right to confront and present evidence are absolute. MacKinnon, ¶ 33; Johnson, ¶¶ 22-23. The Rape Shield Law therefore cannot be applied to exclude evidence arbitrarily or mechanistically, Johnson, ¶ 21, and it is the trial court’s responsibility to strike a balance in each case between the defendant’s right to present a defense and a victim’s rights under the státute. State v. Lindberg, 2008 MT 389, ¶ 53, 347 Mont. 76, 196 P.3d 1252. A court balancing the interests of the defendant with those protected by the Rape Shield Law should require that the defendant’s proffered evidence is not merely speculative or unsupported. Johnson, ¶ 24; Lindberg, ¶ 56. Here, the proffered evidence that R.W. was abused by her father was neither speculative nor unsupported, given that he was convicted on charges stemming from his sexual assaults against his daughter. The court should consider whether the evidence is relevant and probative (Rules 401 and 402, M. R. Evid.); whether the evidence is merely cumulative of other admissible evidence; and whether the probative value of the evidence is outweighed by its prejudicial effect (Rule 403, M. R. Evid.). Commonwealth v. Fernsler, 715 A.2d 435, 440 (Pa. Sup. Ct. 1998). The purpose of these considerations is to ensure a fair trial for the defendant while upholding the compelling interest of the Rape Shield Law in preserving the integrity of the trial and keeping it from becoming a trial of the victim. Anderson, 211 Mont. at 283, 686 P.2d at 199. ¶26 Colburn contends that the District Court’s application of the Rape Shield Law in this case frustrated his ability to respond to two crucial pieces of evidence against him: R.W.’s statement that Colburn sexually abused her, and Hansen’s testimony that R.W.’s knowledge of sexual activity likely came from her having experienced sexual abuse. Colburn proposed to introduce evidence that R.W., following the allegation that he had abused her, alleged that she had been abused by her own father. He also proposed to introduce evidence that R.W. said that she determined that she could make the allegations about her father because her allegations about Colburn had been taken seriously, thus tying her disclosure in the two cases together. In addition, Colburn contended that evidence that R.W. had been abused by her own father was crucial to counter or at least contextualize the testimony of Hansen that R.W.’s detailed knowledge of sexual activities must have arisen from her being sexually abused. ¶27 Colburn’s defense to the charges involving R.W. depended upon undermining the credibility of her account that he abused her. It substantially depended upon undermining Hansen’s endorsement of the credibility of R.W.’s account of Colburn’s acts of abuse. Thus, from Colburn’s point of view, the proposed evidence was an essential part of his important right to confront the witnesses against him and to mount a meaningful defense to the charges. ¶28 At the same time, the Montana Rape Shield Law has long been construed to not automatically exclude evidence that “can be narrowed to the issue of the complaining witness’ veracity .’’ Anderson, 211 Mont. at 284, 686 P.2d at 200. The district court has the power and responsibility to manage the defense evidence to prevent “sordid probes into a victim’s past sexual conduct.” Anderson, 211 Mont. at 284, 686 P.2d at 200. In Lindberg, for example, the district court allowed the defendant in a sexual abuse case to present evidence that his objection to the victim’s relationship with another person provided motivation to fabricate charges of abuse to remove the defendant from the household. However, the defendant was not allowed to present evidence concerning the sexual nature of that relationship. ¶29 Such restrictions represent the balancing of the interests involved without wholly sacrificing the interests of the defense or the victim. In the present case the District Court’s statements excluding Colburn’s proffered evidence show no weighing of his rights to present a defense with the interests represented by the Rape Shield Law. The District Court abused its discretion by mechanistically applying the Rape Shield Law to exclude Colburn’s proffered evidence. ¶30 After careful consideration of the record and the parties’ arguments and authorities, we reverse the convictions and remand to the District Court for a new trial. JUSTICES WHEAT, COTTER, BAKER, SHEA and RICE concur. Although this evidence did not go before the jury, the record reflects that R.W.’s father was charged with five counts of incest and eventually pled guilty to sexual assault. In 1985, Montana broadened the applicability of its Rape Shield Law to include cases involving all types of sexual crimes. See Sec. 3, Ch. 172, L. 1985. The statutory exceptions are evidence of the victim’s past sexual conduct with the offender, or evidence of specific instances of the victim’s sexual activity to show the origin of semen, pregnancy, or disease that is at issue in the prosecution. State v. Stuit, 268 Mont. 176, 885 P.2d 1290 (1994), is not dispositive of the present case. There the defendant argued that he should have been allowed to present evidence of prior sexual encounters involving the victim because the prosecution “opened the door” in its opening statement. This Court affirmed the District Court’s ruling excluding the evidence because the defendant failed to make a contemporaneous objection. Colburn’s ability to counter Hansen’s endorsement of R.W.’s credibility was also substantially hampered by the District Court’s exclusion of the proposed testimony of Zook. The State cites State v. Van Pelt, 247 Mont. 99, 805 P.2d 549 (1991), for the proposition that attacking the credibility of a witness is insufficient reason for admitting evidence that may be covered by the Rape Shield Law. However, this Court held that the conduct involved in the prior abuse could not be the source of knowledge of sexual activity involved in the case, and later cases, including Anderson and Johnson, hold that an attack upon the complaining witnesses’ veracity does not per se run afoul of the Rape Shield Law.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Justice Jim Rice delivered the Opinion of the Court. The Wayne S. Hansen Trust (Trust) appeals from two orders issued by the Third Judicial District Court, Powell County. The Trust acquired tax deeds to three tracts of real property located in Powell County, previously owned by Douglas W. Johnson (Johnson). The District Court’s first order granted summary judgment to Johnson, declaring the tax deeds void, and the second order addressed the calculation of the final amount to be paid to the Trust. We affirm and address the following issues: 1. Did the District Court err by granting summary judgment to Johnson and declaring the tax deeds void? 2. Did the District Court err in determining the final amount due to the Trust as purchaser of the tax liens? PROCEDURAL AND FACTUAL BACKGROUND ¶2 Johnson owned three parcels of real property located in Powell County that were valued collectively for tax purposes at $260,478. After Johnson failed to pay the property taxes over several years, the Trust acquired tax deeds to the properties in December of 2012. The Trust filed three quiet title actions for the respective properties in March 2013, and Johnson responded by filing his own quiet title actions on the properties. Johnson alleged that the tax deeds issued to the Trust violated statutory procedural requirements and asked that the District Court set them aside and declare his ownership interest. ¶3 In April 2013, upon the Trust’s motion, Johnson deposited $20,000 into the Clerk of Court’s trust account as a bond pursuant to § 15-18-411, MCA. Later, the District Court consolidated the six quiet title actions and dismissed Powell County and Powell County Treasurer Lisa Smith (Smith) as defendants, with the understanding that they would produce documents and other evidence as requested by the parties. In response to Johnson’s requests, Powell County and Smith produced several hundred pages of records pertaining to the tax liens and deeds on the subject properties. Following a motion from the Trust, the District Court issued an order in October 2013, directing Johnson to deposit an additional $17,497.48 into the Clerk of Court’s trust account, raising his deposit to $37,497.48. ¶4 Johnson moved for summary judgment in December 2013, citing evidence obtained from the County to argue that both the County and the Trust had failed to comply with several statutes, and that the tax deeds were therefore void. The District Court granted summary judgment to Johnson in May 2014, finding multiple instances of statutory noncompliance in the tax deed process, and declared the tax deeds void. In the same order, the District Court denied another request from the Trust to order Johnson to deposit additional bond funds. On June 30,2014, the District Court entered judgment, ordering that Johnson’s deposit be remitted to the Trust, and that a Certificate of Redemption for each of the properties be issued to Johnson. ¶5 On July 15,2014, the Trust filed objections and a request for relief from the judgment pursuant to M. R. Civ. P. 54(c) and 58(e). On July 28, the Trust also filed a Motion to Alter or Amend the Findings and Judgment or for a New Trial. In both of these motions, the Trust argued that the District Court erred in granting summary judgment by ignoring genuine issues of material fact, and by failing to properly calculate the final amount owed to the Trust. The Trust contended that the District Court erred by denying the Trust’s request for an additional bond deposit, arguing that the $37,497.48 deposited by Johnson, which had been calculated as of July 19, 2013, failed to account for additional taxes, interests, and costs paid by the Trust. In November 2014, the District Court issued an order partially granting and partially denying the Trust’s motions. Specifically, the District Court denied the request to alter or amend the grant of summary judgment, but acknowledged that the judgment failed to “address the issue of taxes accrued or paid by either party during the pendency of the proceedings.” Accordingly, the District Court ordered the parties to submit additional memorandum with supporting evidence “to address any discrepancy between the bond deposit returned to Defendant Hansen Trust and any final redemption amount that is still alleged owed.” ¶6 After receiving additional briefing from the parties, the District Court issued an Order Regarding Final Redemption Amount in February 2015. The District Court noted that the Trust, in its additional briefing, had submitted the affidavit of the Trustee Christian Hansen that “references unsubstantiated amounts for an additional bond deposit, accrued interest, and other disbursements, including property taxes for 2014, property insurance renewal costs, and court filing fees.” However, the court further noted that “Defendant Hansen Trust does not provide any supporting documentation to show how it calculates the interest nor does it provide the Court with evidence of proof of payments ....” The District Court ruled that “based on the evidence presented to the Court, no additional redemption amount is due or owing to Defendant Hansen Trust.” The Trust appeals from the District Court’s orders granting summary judgment and determining the final amount owed to it. STANDARD OF REVIEW ¶7 The Court reviews a grant of summary judgment de novo', performing the same analysis as does a district court. Lorang v. Fortis Ins. Co., 2008 MT 252, ¶ 36, 345 Mont. 12, 192 P.3d 186 (citation omitted). “The judgment sought should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” M. R. Civ. P. 56(c)(3). “In determining whether genuine issues of material fact exist, we must view all evidence in the light most favorable to the non-moving party.” Lorang, ¶ 38. If the moving party meets its burden of demonstrating a complete absence of genuine issues of material fact, the burden then shifts to the non-moving party to set forth specific facts, not merely denials, speculation, or conclusory statements, in order to establish that a genuine issue of material fact does indeed exist. Finally, if no genuine issues of material fact exist, it must then be determined whether the facts actually entitle the moving party to judgment as a matter of law. Lorang, ¶ 39. ¶8 “Our standard of review relating to conclusions of law is whether the trial judge’s interpretation of the law is correct.” Moran v. Robbin, 261 Mont. 478, 482, 863 P.2d 395, 398 (1993) (citing Steer, Inc. v. Dep’t of Revenue, 245 Mont. 470, 474, 803 P.2d 601, 603 (1990)). DISCUSSION ¶9 1. Did the District Court err by granting summary judgment to Johnson and declaring the tax deeds void? ¶10 The Trust contends that the District Court improperly granted summary judgment and declared the tax deeds void. Generally, the Trust argues that summary judgment was improper because the record was incomplete and disputed issues remained. ¶ 11 Tax deed proceedings require strict compliance with the governing statutes: Tax deed proceedings implicate a property owner’s fundamental interests. The purpose behind the tax lien sales statutes is to protect property owners and their rights to due process. Due to the important interests at stake, every essential and material step required by the tax deed statutes must be strictly followed. Such exacting compliance with the statutes is necessary because the owner risks losing his or her real property for the failure to pay the property taxes. Often, very valuable property is lost for a mere pittance. Hansen Trust v. Ward, 2015 MT 131, ¶ 26, 379 Mont. 161, 349 P.3d 500 (internal citations and quotation marks omitted). We have also held that “[i]n determining the sufficiency of the tax deed proceedings, the record alone is to be considered ....’’ Moran, 261 Mont. at 483, 863 P.2d at 398. ¶12 In his motion for summary judgment, Johnson asserted, among other claims of statutory violations, that Treasurer Smith had failed to provide the County Clerk and Recorder with a report of all persons and property owing taxes, in violation of § 15-16-301, MCA. The statute requires the county treasurer to “make a report to the county clerk and recorder in detail, showing the amount of taxes collected and a complete list of all persons and property then owing taxes.” Section 15-16-301(1), MCA. As evidence of this failure, Johnson included a copy of a memo sent from Smith to the Powell County Clerk and Recorder on March 31, 2011, in which she acknowledged: Per [§] 15-16-301, MCA, on the third Monday of June of each year, I am required to provide you with a report of the amount of taxes collected, a list of all persons and property then owing taxes and a separate report showing the amount of taxes suspended or canceled. I don’t know that this has ever been done. I know I haven’t prepared these reports for you since I started .... The attachments provide these reports to you for fiscal years 2007, 2008, 2009[,] and 2010. Although the statutory date requirement has not been met, this will provide a starting point for future compliance with this statute. In another memorandum, also dated March 31, 2011, Smith acknowledged that other reports required under § 15-17-214(2)(a), MCA, had likewise not been submitted to the County Clerk and Recorder. Johnson also provided records of the procedures and notices employed in this case, and detailed how they failed to satisfy statutory requirements. ¶13 In Isern v. Summerfield, 1998 MT 45, 287 Mont. 461, 956 P.2d 28, the appellant taxpayer claimed that the district court had erred by granting summary judgment to the tax purchasers, and by concluding that multiple errors in the process did not void the tax deed. We agreed with the appellant taxpayer and reversed following a discussion of the statutory infractions, concluding, “[gjiven the requirement of strict compliance with statutory procedures for issuing a tax deed,... we hold that the errors and omissions discussed above void the subject tax deed ....” Isern, ¶ 21. The appellant taxpayer noted several statutory errors, including a failure to comply with § 15-16-301, MCA. Isern, ¶ 11. Similarly, here, Johnson demonstrated a violation of this same statute, as well as many other violations, from the records provided by the County. The District Court reviewed the records and correctly granted summary judgment to Johnson, identifying a total of thirteen errors in the tax deed process. ¶14 The Trust argues that the record was incomplete and that genuine issues of material fact remained, but fails to articulate exactly what those issues of fact are. The records cited by Johnson were clearly sufficient to establish several violations of the statutory tax deed process. After producing records regarding these tax deed transactions, Treasurer Smith submitted an affidavit wherein she stated that “additional documentation may exist that was not located during the week-long search” (emphasis added). The Trust emphasizes this statement in arguing that the District Court prematurely granted summary judgment without giving the Trust the opportunity to conduct “original discovery.” However, the Trust fails to show how the discovery of additional documentation could have changed the outcome — multiple statutory violations, sufficient to void the tax deeds, were already established by the uncontested evidence presented. ¶15 We affirm the District Court’s order granting summary judgment. Montana law clearly requires “exacting compliance with the statutes” governing the tax deed process, and the host of errors in the statutory procedure in this case required voiding of the deeds. Hansen Trust, ¶ 26. ¶16 2. Did the District Court err in determining the final amount due to the Trust as purchaser of the tax liens ? ¶17 The Trust argues that the District Court failed to determine a proper equation or formula for calculation of the redemption amount owed to it, that the District Court incorrectly ordered the bond deposit paid in lieu of redemption when the liens on the properties had not been properly extinguished, and that the final amount remitted by Johnson failed to include the proper interest, subsequent taxes, and costs. ¶18 A tax deed conveys to the tax purchaser, or “grantee,” the “absolute title to the property described in the deed ....” See § 15-18-413(1), MCA. In addition, this “conveyance” from the county gives to the tax purchaser “the right, if the tax deed ... [is] attacked and held irregular or void, to recover the unpaid taxes, interest, penalties, and costs that would accrue if the tax proceedings had been regular and it was desired to redeem the property.” Section 15-18-413(2)(b), MCA. The delinquent taxpayer may seek to have the tax deed declared void via a quiet title action, as happened in this case, and is referred to by statute as the “true owner.” Section 15-18-411(l)(b), MCA. In such an action, the true owner may be ordered to deposit with the court: the amount of all taxes, interest, penalties, and costs that would have accrued if the property had been regularly and legally assessed and taxed as the property of the true owner and was about to be redeemed by the true owner; and the amount of all sums reasonably paid by the purchaser following the order and after 3 years from the date of the tax lien sale to preserve the property or to make improvements .... Section 15-18-411(l)(c)(i)(A)-(B), MCA. Then, if “the true owner is successful in the action and the tax proceedings are declared void, the amount deposited with the court must be paid to the purchaser” of the tax lien. Section 15-18-412(3), MCA. This deposit “encourages prompt return of the property to the tax rolls” and “prevents unjust enrichment of the owner at the expense of the tax purchaser should the owner win.” Ball v. Gee, 243 Mont. 406, 412, 795 P.2d 82, 86 (1990). “The deposit also lessens the burden on the courts and the purchasers by precluding frivolous defenses.” Ball, 243 Mont. at 412, 795 P.2d at 86. ¶19 Here, the two parties and the District Court all used different equations to calculate the final amount due to the Trust after the tax deeds were declared void, and we hope to clarify the statutory equation herein. First, as used in Hansen Trust, ¶ 44, the term “redemption amount” means the “amount reflecting the taxes, interest, penalties, and costs that would have accrued under normal circumstances.” This amount, which a court may order to be deposited with the court, represents the amount the delinquent taxpayer or “true owner” would have had to pay to the County “if the property had been regularly and legally assessed and taxed as the property of the true owner and was about to be redeemed by the true owner.” Section 15-18-411(l)(c)(i)(A), MCA. In other words, the statute requires a calculation as if redemption were taking place by a payment to the County at that moment in the litigation, which consists of the “amount of taxes due, including penalties, interest, and costs, as of the date of the notice of pending tax deed issuance ....” Section 15-18-212(6)(e), MCA. In addition, “[t]he amount of interest and costs provided for in subsection (6)(e) continues to accrue until the date of redemption ....” Section 15-18-212(7), MCA. Thus, reading these provisions together, we conclude the redemption amount requires a calculation of a sum of the unpaid taxes, interest that accumulates at the statutory rate until the date of deposit, and the costs and penalties assessed up until the date of deposit. Additional interest that may accrue on this amount during further litigation and additional costs are discussed below. ¶20 The next amount required by statute to be repaid by the true owner is any property taxes on the property paid by the tax purchaser subsequent to issuance of the tax deed. Section 15-18-412(6), MCA, provides that the court “shall also determine the rights resulting from any additional taxes on the property accruing or being paid by either party during the pendency of the suit.” If the tax purchaser has paid property taxes on the property subsequent to issuance of the tax deed, the true owner must reimburse this cost. See also Hansen Trust, ¶ 44. ¶21 The next item in the equation is costs. By statute, the true owner must deposit “the amount of all sums reasonably paid by the [tax] purchaser,” after the court’s deposit order and at least 3 years after the date of the tax lien sale, “to preserve the property or to make improvements on the property while in the purchaser’s possession....” See § 15-18-411(l)(c)(i)(B), MCA. Further, “costs” are also defined as those that are incurred by the tax purchaser and are “required by law.” Section 15-17-121(2)(b), MCA; Hansen Trust, ¶ 42. We have held that, even if costs such as property insurance, administrative expenses, and attorney fees could be considered reasonable, they are not “required by law” and are not reimbursable. See Hansen Trust, ¶ 43. ¶22 Finally, there is the issue of additional interest that may be claimed during the course of litigation. As discussed above, the redemption amount necessarily includes the unpaid taxes, interest that accumulates until the date of deposit, and costs and penalties. In Hansen Trust, we also affirmed the District Court’s award of interest to the tax purchaser that had accumulated on the true owner’s deposit during the litigation. Hansen Trust, ¶ 41. However, the decision to award any such interest lies within the discretion of the presiding court, and a tax purchaser is not automatically entitled to such an award. See § 15-18-412(7), MCA. ¶23 Here, the District Court ordered Johnson to deposit $37,497.48, which included property taxes for tax years 2008, 2009, 2010, 2011, and 2012, accumulated interest on that sum assessed by the Trust, insurance premiums, court filing costs, and publication costs. As explained herein, there is no provision in the statutes entitling a tax purchaser to collect interest on the redemption amounts owed or other costs not expressly required by law. See § 15-17-121(2), MCA; § 15-18- 411(l)(c)(i)(B), MCA. On the other hand, the Trust points out that the $37,497.48 amount was calculated only as of July 19,2013, and did not include the subsequent taxes it paid for tax years 2013 and 2014. However, the Trust failed to submit the necessary documentation when ordered by the District Court, leading the court to conclude that the Trust had waived further reimbursement. While further proceedings, in light of this opinion, may well have resulted in both positive and negative adjustments in the amount properly payable to the Trust, its waiver of further reimbursement, and Johnson’s lack of a challenge to the $37,497.48 ordered by the District Court, leads us to the conclusion that affirming the judgment as entered is appropriate. ¶24 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES COTTER, SHEA and BAKER concur. The Trust raises 19 issues on appeal. We refer counsel to M. R. App. P. 12(l)(b), providing: “Parties are encouraged to limit the number of issues to 4 or fewer.” Although the District Court ordered Johnson to deposit additional bond funds, the amount Johnson was required to deposit was significantly less than what the Trust requested. In its motion, the Trust requested a deposit in the amount of $79,421.39. Included in that sum were accrued taxes for the years 2008, 2009, 2010, 2011, and 2012, penalties, interest, property insurance premiums, publication costs, court filing fees, trust administrative expenses, andlegal fees. In ordering Johnson to deposit $37,497.48, the District Court specifically did not include trust administrative expenses or attorney fees. The Trust filed a third post-judgment motion for relief pursuant to M. R. Civ. P. 60(b)(1) and (5) on March 2, 2015, requesting that the District Court consider the “excluding of those receipts from its Memorandum as being an inadvertent mistake.” The Trust included an affidavit and receipts that had not been submitted previously. This documentation contained the property insurance premium information, as well as receipts for the 2013 and 2014 tax year payments. The District Court denied this motion, finding the Trust’s supplemental documentation was untimely. On May 11, 2015, Johnson filed a motion that requested the District Court to order the Powell County Treasurer to mail the tax bills for the properties to him, and not to the Trust. In its answer, the Trust argued that the District Court should use its authority sua sponte to resolve the discrepancy between the bond deposit and the redemption amount, and that the matter of the tax bills should be held in abeyance. By then, the appeal had been filed to this Court, and the District Court concluded that it was “divested of jurisdiction to address this matter further.” The Trust also argues that summary judgment was improperly entered because “revelations of the county’s alleged nonfeasance, misfeasance, and knowledgeable contributions to the problems” in the tax deed process “constituted a genuinely disputed material issue.” However, this was a quiet title proceeding in which the County claimed no interest in the property, and in which no claims against the County were filed, if any could have been. The District Court’s dismissal of the county defendants was proper. We use the term “redemption amount” here because it has been used throughout the course of this case (e.g., the District Court’s “Order Regarding Final Redemption Amount”), and has been used in our previous case law. See, e.g., Hansen Trust, ¶ 44. The term “redemption” is primarily used in statute to refer to the process of extinguishing a tax hen on a property by payment to the County, as codified in § 15-18-111, MCA, et seq., wherein the delinquent taxpayer or interested party is referred to as the “redemptioner.” Section 15-18-112(2)-(3), MCA. However, the use of the term within the context here clearly refers to the amount to be reimbursed directly to the tax purchaser in tax litigation. See also § 15-18-412(2)(a), MCA. We take this opportunity to clarify our discussion of this statute in Hansen Trust, ¶ 42. In describing the rights of the tax purchaser after a tax deed has been declared void, as provided by § 15-18-413(2), MCA, we stated that the term “conveyance” in the statute refers to a “new deed,” presumably transferring the property back to the true owner. Hansen Trust, ¶ 42, n.4. However, as used here, the term “conveyance” actually describes the original conveyance from the county to the tax purchaser by way of the tax deed. Section 15-18-413(2)(b), MCA, contains very similar language, entitling a tax purchaser, in the event that the tax deed is declared void, to recover the amount that would have accrued “if the tax proceedings had been regular and it was desired to redeem the property.” The Court cited to § 15-18-412(3), MCA, as authority for awarding interest that had accrued on the deposit during the litigation. See Hansen Trust, ¶¶ 41,47. However, interest is not referenced in that provision, and authority for this award is more properly derived from § 15-18-412(7), MCA, which provides that “[i]n the quiet title action, the court has complete jurisdiction to fix the amount of taxes that should have been paid, including penalties, interest, and costs, and to determine all questions necessary in granting full relief...”
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JUSTICE McKINNON delivered the Opinion of the Court. ¶1 Barbara Sparks (Sparks) appeals from an order entered by the Twenty-Second Judicial District Court, Stillwater County, granting Frances Emmert (Emmert) summary judgment. We reverse and remand. ¶2 Restated, Sparks presents the following issue for review: Did the District Court err in granting summary judgment in Emmerfs favor? FACTUAL AND PROCEDURAL BACKGROUND ¶3 This case concerns the disputed validity of a quitclaim deed (Deed) executed by Kurt Heigis (Heigis) purportedly conveying certain real property to Emmert, Heigis’ long-time friend and former short-term girlfriend. The Deed’s subject real property was Heigis’ home, which is located on approximately fifty seven acres in Columbus, Montana and has been owned by Heigis’ family for three generations (Heigis Property). Heigis and Emmert met and became friends in the early 1970’s. For a short time in 2000, Heigis employed Emmert as a hand in his landscaping business. Heigis and Emmert dated for approximately four months beginning in late 2000. After their more intimate relationship ended amicably, Heigis and Emmert remained friends. Emmert describes their relationship as “like family.” ¶4 On June 17, 2001, Heigis executed and a notary notarized the Deed. According to Emmert, on the same day the Deed was executed, Heigis personally delivered it to Emmert at her home in Reed Point, Montana. Heigis told her to keep it and not record it until “something happened to him.” Also, according to Emmert, she and Heigis agreed that Heigis would continue to live on the Heigis Property, maintain it, and pay for its expenses. Heigis explained to Emmert that he was giving her the Deed because he knew she would not sell the Heigis Property. Emmert stored the Deed in her safe. After physically delivering the Deed to Emmert, Heigis continued to live in his home on the Heigis Property. He also maintained the property and paid for its insurance and taxes. On October 31,2001, Heigis executed a mortgage on the Heigis Property acting as its mortgagor. ¶5 At some point in 2003, while Heigis was at Emmert’s house visiting her, Emmert explained to Heigis that she was planning to move to Wyoming and asked if he would take back the Deed. Emmert attempted to physically return the Deed to Heigis, but Heigis refused it and reiterated to her that he wanted her to keep it. Emmert replaced the Deed in her safe. Emmert did not move to Wyoming. ¶6 On November 1,2007, Heigis executed an additional mortgage on the Heigis Property acting as its mortgagor. On August 23, 2010, Heigis requested a survey be prepared of the Heigis Property for the purpose of a gift or sale to a family member. The landowner certification on the survey states, “Tract A,” comprising approximately twenty acres, “is to be transferred to my daughter Joanna Mong.” Heigis told Emmert about his plan to give his daughter some of the Heigis Property and she agreed it was “okay” with her. This contemplated transfer never occurred, apparently because Heigis’ daughter moved to Billings, Montana instead. Heigis executed three loan modifications to the additional, November 1, 2007, mortgage on December 17, 2010, December 6, 2011, and November 26, 2013. ¶7 On February 9, 2014, Heigis was murdered while vacationing in Costa Rica. On March 5, 2014, Emmert recorded the Deed in the Stillwater County Clerk and Recorder’s Office. Sparks, Heigis’ daughter, acting as personal representative of his estate, initiated an action against Emmert to quiet title to the Heigis Property. Both parties filed motions for summary judgment. Emmert argued the facts were undisputed and that the Deed was legally delivered on June 17, 2001. Sparks agreed that the facts were undisputed, but countered that the Deed was inoperative because it was never delivered. The District Court concluded that the Deed was legally delivered and granted Emmert summary judgment. Sparks appeals. STANDARD OF REVIEW ¶8 We review an entry of summary judgment de novo, applying the same criteria of M. R. Civ. P. 56 as the district court. Davis v. State, 2015 MT 264, ¶ 7, 381 Mont. 59, 357 P.3d 320. DISCUSSION ¶9 Did the District Court err in granting summary judgment in Emmert’s favor ? ¶10 Summary judgment is appropriate if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. M. R. Civ. P. 56(c)(3). The party opposing entry of summary judgment “must establish with substantial evidence, as opposed to mere denial, speculation, or conclusory assertions, that a genuine issue of material fact exists or that the moving party is not entitled to prevail under applicable law.” Hansard Mining Co. v. McLean, 2014 MT 199, ¶ 10, 376 Mont. 48, 335 P.3d 711 (citation omitted). ¶11 On appeal, Sparks contends that summary judgment was granted in error because an issue of material fact existed — whether delivery occurred — and substantial evidence supported a conclusion that delivery did not occur. The delivery necessary to legally convey real property did not occur, she argues, because after executing the Deed, Heigis continued to retain exclusive dominion and control over the Heigis Property until his untimely and unfortunate death. Sparks contends further, that because the Deed is ineffective and invalid under § 70-1-508, MCA, because it was not delivered, Heigis’ estate owns the Heigis Property. Emmert counters that, under § 70-1-509, MCA, if a deed is executed, its delivery is presumed and the evidence that Heigis continued to live on and manage the property after executing the Deed does not clearly or convincingly rebut that presumption. Emmert argues the District Court correctly granted summary judgment in her favor. ¶12 “A grant takes effect so as to vest the interest intended to be transferred only upon its delivery by the grantor.” Section 70-1-508, MCA. “A grant duly executed is presumed to have been delivered at its date.” Section 70-1-509, MCA. This presumption may be rebutted. Clear and convincing evidence contrary to the presumption is necessary for rebuttal. Gross v. Gross, 239 Mont. 480, 482, 781 P.2d 284, 285 (1989) (citations omitted). A grant may not be delivered conditionally; instead, delivery is deemed to be absolute. Section 70-1-510, MCA. Transfer vests title “unless a different intention is expressed or is necessarily implied.” Section 70-1-519, MCA. An unrecorded deed is valid as between the parties. Section 70-21-102, MCA. ¶13 Delivery is a question of intent. 23 Am. Jur. 2d Deeds § 106(2013); Roman v. Albert, 81 Mont. 393, 407, 264 P. 115, 120 (1928) (citation omitted). “To be valid and effective, the act of delivery of a deed must be accompanied by the intent that it becomes presently operative as such and presently pass title.” 23 Am. Jur. 2d Deeds § 106 (2013). The grantor must intend to divest himself of his title so as to lose all dominion, power or control over it and place it beyond the right of recall. Miller v. Talbot, 115 Mont. 1, 10-11, 139 P.2d 502, 507 (1943). “[T]he failure of the grantor to reserve a life estate, and the grantor’s remaining in possession of the property and the deed until death, strongly indicates that there was never a delivery of the deed to the grantees.” 23 Am. Jur. 2d Deeds § 143 (2013). “The facts and circumstances which have been held sufficient to constitute the actual or constructive delivery of a deed are exceedingly numerous and varied.” Springhorn v. Springer, 75 Mont. 294, 300, 243 P. 803, 804 (1926). ¶14 Acts or declarations of the grantor subsequent to physically delivering a deed to the grantee to hold until a future time are admissible as bearing on the intention of the grantor to make delivery. 23 Am. Jur. 2d Deeds § 146 (2013). Examples of subsequent statements of the grantee that were considered as evidence to dispute whether delivery had occurred in other jurisdictions include declarations that: 1) the grantor proposed or desired to sell the property purportedly conveyed by the deed; 2) the instrument was in effect a will; 3) the delivery was contingent upon certain eventualities; 4) the grantor intended to destroy the deed; 5) the grantor was under duress during the execution of the instrument; and 6) the grantor, expressly or by necessary inference, indicated that the grantor considered himself or herself to be the owner of the property. 23 Am. Jur. 2d Deeds § 146 (2013). ¶15 The grantor’s right to recall a deed has been a determining factor in several cases which have similarly focused on whether a deed had been effectively delivered. See Hayes v. Moffatt, 83 Mont. 214, 226-27, 271 P. 433, 437 (1928); Miller, 115 Mont. at 8-9, 139 P.2d at 506. Often, the facts presented involve either a third party or a safety deposit box holding an executed deed. Typically, courts hold that where both the grantee and grantor have access to the document, the deed has not been delivered because it is still subject, at least in part, to the grantor’s dominion and control. Courts have held that where a grantor has access to and could destroy or retake the Deed if they changed their mind, the document was not delivered. ¶16 Here, the record indicates Heigis and Emmert enjoyed a decades-long friendship. The Deed was executed on June 17, 2001, and is presumed by statute to have been delivered on that date. Emmert had possession and exclusive control over the deed, which she kept in her personal safe at her home. Heigis explained to Emmert that he wanted her to have the Heigis Property because he knew she would not sell it. The parties agreed that Heigis would continue to live on, and maintain, the Heigis Property. This evidence is substantial and lends to a conclusion that Heigis intended to transfer title to Emmert upon delivery, presumably June 17, 2001, and during his lifetime. ¶17 Conversely, the record also indicates that after executing the Deed, Heigis continued to live on the Heigis Property and pay for its taxes, insurance, and maintenance. Subsequent to his manual delivery of the Deed, Heigis executed two mortgages on the Heigis Property and three amendments to the second mortgage as its mortgagor and owner. Further, Heigis had the land surveyed, as its owner, for the purpose of a family transfer he was contemplating wherein he planned to give roughly twenty acres to his daughter, Joanna Mong. Emmert admits she agreed to Heigis’ plan to give a portion of the Heigis Property to his daughter. Heigis purportedly asked Emmert to wait until “something happened” to him before recording the Deed. This evidence is substantial as well and supports a conclusion that Heigis considered himself to be the owner of the Heigis Property until his death. It suggests Heigis intended the Deed to be a will-replacement and that delivery, and transfer of ownership, not occur during his lifetime or at all. This evidence also indicates Emmert acknowledged that the Heigis Property belonged to Heigis during his lifetime and was his to maintain, mortgage, recall, and, even, give away. ¶ 18 Additionally, the record indicates Emmert attempted to return the Deed to Heigis in 2003 when Emmert was considering moving to Wyoming. This action could be construed as evidence indicating either that the parties believed Heigis could simply retake the Deed or that the parties understood the property was Emmert’s and that she was generously willing to give it back. ¶19 This case asked the District Court to address whether the facts presented represented the legal delivery of a deed that is necessary to convey real property in Montana. Delivery is a question of intent. The District Court relied on evidence in the record to conclude that delivery had occurred. However, substantial evidence in the record also supported the opposite conclusion — that delivery had not occurred. Because the issue of delivery, and its concomitant determination of Heigis’ intent, was material to the resolution of Sparks’ and Emmert’s dispute, and because substantial evidence supported either conclusion, the existence of the issue precluded the District Court from granting summary judgment to either party. CONCLUSION ¶20 The District Court erred in granting summary judgment in Emmert’s favor because an issue of material fact, whether the Deed was legally delivered, existed and Emmert was not entitled to judgment as a matter of law. Reversed and remanded for further proceedings consistent with this Opinion. CHIEF JUSTICE McGRATH, JUSTICES SHEA, BAKER and RICE concur. The legal description of the Heigis Property is S 1/2 SE 1/4 less Tract as shown on Certificate of Survey No. 260899, Section 24, Township 3 South, Range 19 East, Principal Meridian of Montana.
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JUSTICE McKINNON delivered the Opinion of the Court. ¶1 Barbara Brown Bergum, Richard Brown, Jeannette Studer, Caroline Y. Houston, Kathy F. Arnoux, and Ethel Gentry (collectively Bergum) filed this action to quiet title in the Fourteenth Judicial District Court, Musselshell County, against Musselshell County. Both parties moved for summary judgment. The District Court granted judgment in favor of Musselshell County. Bergum appeals. Musselshell County cross-appeals from an order regarding attorney fees and costs. We affirm. ¶2 Bergum and Musselshell County raise several issues on appeal. We conclude the following issues are determinative: 1. Did the District court err in concluding that the statute of limitations in § 2214, RCM (1935), barred Bergum’s quiet title action? 2. Did the District Court err in denying Musselshell County its attorney fees under § 25-7-105, MCA? FACTUAL AND PROCEDURAL BACKGROUND ¶3 The controversy in this case centers on the disputed ownership of subsurface mineral rights to coal-rich land located in Musselshell County (Subject Real Property). The Subject Real Property has a lengthy and intricate history of ownership. Beginning in 1873, the United States Congress approved appropriations of vacant coal lands of up to 160 acres, provided the applicant was at least twenty one years old, a United States citizen, and paid $10 per acre. In 1908, both Lincoln Wescott and Annie Wescott received patents for adjacent parcels of 160 and 160.58 acres, for which they paid $1,600 and $1,605.80 respectively. Also in 1908, Lincoln Wescott conveyed his patented 160 acres to Annie Wescott. This combined 320.58 acres comprises the Subject Real Property. ¶4 In 1935, Annie Wescott, now Annie Owen, conveyed the Subject Real Property to Charles Wilson. In 1936, county-assessed taxes on the Subj ect Real Property were not paid and the County Assessor listed the taxes as delinquent. The taxes remained delinquent until 1941 when Charles Wilson paid a portion of the taxes owed and redeemed the property. Critically, the Certificate of Redemption of Property Sold for Taxes, dated March 5, 1941, describes the Subject Real Property Charles Wilson redeemed and states “surface rights only.” From this point, the Subject Real Property’s subsurface rights (Subsurface Rights) and surface rights (Surface Rights) are severed. On the same day Charles Wilson redeemed the “surface rights only,” he conveyed his interest in the Subject Real Property and other property to E.K. Woodley and E.C. Woodley. ¶5 The Subsurface Rights were not redeemed in 1941. Subsequently, the unredeemed portion of the original tax delinquency, which began in 1936, remained delinquent until 1945 and was listed under Charles Wilson’s name. In 1945, Musselshell County applied for a tax deed. Affidavits of service, filed with both the Musselshell County Clerk and Recorder and the Treasurer’s office, verify that the County provided notice of an impending tax sale by publication and registered mail. In 1946, Musselshell County held a tax sale where it purchased the Subsurface Rights for $251.32. The Treasurer of Musselshell County issued a tax deed to Musselshell County on February 5, 1946, for the Subject Real Property “less surface which has been redeemed.” ¶6 Regarding the Surface Rights after 1941, another tax delinquency occurred in 1945 and was listed under E.K. Woodley’s name. Also in 1945, E.K. Woodley and E.C. Woodley conveyed their interest in the Subject Real Property and other property to Francis Brown, Murry Brown, and Jim Brown. Still in 1945, Jim Brown and Murry Brown conveyed their interests to Francis Brown. In 1950, Francis Brown conveyed his interest in the Subject Real Property to Roy Gentry and Ethel Gentry. In this conveyance, Francis Brown attempted to retain a fifty percent mineral interest in the Subject Real Property (Mineral Right of Entry). ¶7 In 1955, Roy Gentry and Ethel Gentry filed an action to quiet title to the Subject Real Property. The title was quieted in their favor by decree recorded on January 6, 1956, but an exception was listed for Musselshell County’s interest in the Subsurface Rights. The decree stated Roy Gentry and Ethel Gentry “are entitled to a decree of this Court quieting title as to said real estate” except for “the interest of Musselshell County, Montana, in and to the minerals, including coal, pertaining to the [Subject Real Property], together with a right of entry on said lands.” Francis Brown, who claimed to have maintained a Mineral Right of Entry in the Subject Real Property, was not named as a party in this quiet title proceeding. ¶8 Finally, in 2007, Bergum initiated an action against Musselshell County to quiet title to the Subject Real Property as successor in interest to the Mineral Right of Entry Francis Brown purportedly retained when he transferred the Subject Real Property in 1950. Musselshell County and Bergum filed competing motions for summary judgment in 2012. On October, 3, 2012, the District Court held a hearing on the parties’ respective motions for summary judgment. Over two years later, on December 19,2014, the District Court granted Musselshell County’s motion for summary judgment. On April 13, 2015, the District Court entered an order awarding costs, but not attorney fees. On April 28, 2015, the District Court entered its judgment in favor of Musselshell County from which Bergum appeals. Musselshell County cross-appeals from the District Court’s order regarding attorney fees and costs. STANDARD OF REVIEW ¶9 A district court’s grant of summary judgment is reviewed de novo. Omimex Can., Ltd. v. State, 2015 MT 102, ¶ 11, 378 Mont. 490, 346 P.3d 1125 (citation omitted). Summary judgment is appropriate where there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law. M. R. Civ. P. 56(c)(3). “We review a district court’s conclusions of law for correctness.” Kiser v. Kiser, 2015 MT 315, ¶ 7, 381 Mont. 368, 360 P.3d 1139 (citation omitted). ¶10 If legal authority exists for a district court to award attorney fees, then a district court’s grant or denial of attorney fees is a discretionary ruling which we review for abuse of discretion. Swapinski v. Lincoln Cnty., 2015 MT 275, ¶ 8, 381 Mont. 138, 357 P.3d 329 (citation omitted). DISCUSSION ¶11 1. Did the District court err in concluding that the statute of limitations in § 2214, RCM (1935), barred Bergum’s quiet title action? ¶12 At the District Court level, Bergum challenged the sufficiency of the tax deed procedure used by Musselshell County to purchase the Subject Real Property’s Subsurface Rights in 1946. The District Court, in its order granting Musselshell County summary judgment, concluded that “[e]ven if a problem existed with respect to Musselshell County’s tax deed procedure, the statute of limitations set forth in R.C.M. (1935) Section 2214 bars any claim by [Bergum] based on such problem(s).” ¶13 Bergum argues the District Court erred in applying § 2214, RCM (1935), to conclude her quiet title action was barred. Bergum claims that § 2214, RCM (1935), by its own language, does not apply for two alternative reasons; either because 1) “no taxes were delinquent on said lands” or 2) “redemption had been made from said tax sale.” Section 2214, RCM (1935). Essentially, Bergum argues the taxes assessed on the Subject Real Property were unconstitutional and, because they were never legally assessed, could never have become delinquent. Alternatively, Bergum argues that allowing a taxpayer to redeem only a portion of tax-delinquent property is unconstitutional and, therefore, asserts that Charles Wilson’s redemption of the property in 1941 effectively redeemed the entire Subject Real Property, not just the “surface rights only.” Under either alternative, Bergum maintains that § 2214, RCM (1935), does not apply or bar her quiet title action. ¶14 In response, Musselshell County argues § 2214, RCM (1935), applies and bars Bergum’s action because the taxes assessed on the Subject Real Property were constitutional at the time they were assessed under Article 12, Section 3, of the 1889 Montana Constitution, which required mining claims be taxed. Further, Musselshell County points to § 2211, RCM (1935), entitled “Redemption from tax sales — piecemeal redemption” as support for its proposition that piecemeal redemption was constitutional and statutorily authorized. The District Court agreed with Musselshell County and concluded § 2214, RCM (1935), barred Bergum’s current quiet title action. We agree with the District Court and Musselshell County. ¶15 The law applicable at the time the taxes were assessed and the sale occurred must be used to determine the validity of the taxes and the procedure used. See Fariss v. Anaconda Copper Mining Co., 31 F. Supp. 571, 576 (D. Mont. 1940); King v. Rosebud Cnty., 193 Mont. 268, 275, 631 P.2d 711, 715 (1981) (The court looked to statutes in force in 1939 to determine the validity of tax sale proceedings which occurred in 1939). Here, this Court will look to the constitution and statutes in force at the time the challenged assessments and tax sale occurred. ¶16 Section 2214, RCM (1935), entitled “Of what deed is evidence — actions concerning,” provides that a duly acknowledged or proved deed is conclusive evidence of all other proceedings from the tax assessment up to the execution of the deed. Further it reads, in pertinent part: [N]o action can be maintained to set aside or annul a tax deed or to assert a title hostile to a tax deed upon any ground whatever, whether on the ground that said deed, or any prior proceeding, was irregular or void, other than that the deed was void because no taxes were delinquent on said lands, or because redemption had been made from said tax sale, unless the action is commenced within one year from and after the date of the issuance of said tax deed. Section 2214, RCM (1935). Section 2214, RCM (1935), sets out a one-year statute of limitations and outlines two exceptions to its application. The one-year limitations does not bar an action if the “deed was void because no taxes were delinquent on said lands,” or “because redemption had been made from said tax sale.” Section 2214, RCM (1935). ¶17 In its order granting Musselshell County summary judgment, the District Court concluded that the 1946 deed was not void because the taxes assessed on the property and partial redemption of the “surface rights only” were proper. It follows that if the two exceptions to the statute of limitations do not apply, § 2214, RCM (1935), applies, and bars Bergum’s claim. If the District Court’s conclusion that the exceptions do not apply is correct, Bergum’s predecessors in interest had until February 5, 1947, or one year from the issuance of the tax deed to Musselshell County, to initiate an action to quiet title to the Subject Real Property’s Subsurface Rights. Instead, Bergum initiated this action by filing a complaint to quiet title on April 4, 2007, or over 60 years after the deadline imposed by § 2214, RCM (1935). We review the District Court’s conclusions that the exceptions of § 2214, RCM (1935), do not apply for correctness. We address their application in turn: a. Exception 1: “deed was void because no taxes were delinquent on said lands” ¶18 Bergum relies on Northern Pacific Railway v. Musselshell County, 54 Mont. 96, 169 P. 53 (1917), to support her contention that the taxes Musselshell County assessed on the Subsurface Rights after the Surface Rights were redeemed, from 1941 to 1945, were unconstitutional and, therefore, void. Bergum contends Northern Pacific Railway supports her proposition that “taxation of an undeveloped mineral estate was unconstitutional.” We disagree. Article 12, Section 3, of the 1889 Montana Constitution states: All mines and mining claims, both placer and rock in place, containing or bearing gold, silver, copper, lead, coal or other valuable mineral deposits, after purchase thereof from the United States, shall be taxed at the price paid the United States therefor, unless the surface ground, or some part thereof, of such mine or claim, is used for other than mining purposes, and has a separate and independent value for such other purposes, in which case said surface ground, or any part thereof, so used for other than mining purposes, shall be taxed at its value for such other purposes. This constitutional provision was interpreted by the Court in Northern Pacific Railway and Hinz v. Musselshell County, 82 Mont. 502, 267 P. 1113 (1928). It was interpreted again in Superior Coal Co. v. Musselshell County, 98 Mont. 501, 41 P.2d 14 (1935), which, after discussing both Northern Pacific Railway and Hinz, held that “one who has purchased a mining claim from the United States is estopped from denying that it is a mining claim.” Superior Coal Co., 98 Mont. at 514, 41 P.2d at 20. Further, “[f]or the purpose of taxation, coal mining claims, lode mining claims and placer mining claims alike are governed by the provisions of the Constitution.” Superior Coal Co., 98 Mont. at 514, 41 P.2d at 20. The Court held that the taxable value of property is appropriately set by the constitution at the price paid for the property. Superior Coal Co., 98 Mont, at 515, 41 P.2d at 20. The risk that the property is not as valuable as the patentee paid, or worthless, is immaterial to the constitutionality of this scheme of taxation. Superior Coal Co., 98 Mont. at 515, 41 P.2d at 20. Finally, the Court concluded that the “surface ground by itself is not taxed at any value; it is part of the mine; it is presumed that it has no value except for use in working the mine. When the surface ground of a mining claim, or some part thereof is used for some purpose other than mining, and the owner of the mining claim sells that surface ... he is still the owner of the mining claim; all he has sold is the newly created estate ‘which in the eye of the law, is regarded as independent of the original estate.’ ” Superior Coal Co., 98 Mont. at 521, 41 P.2d at 23. ¶19 Here, Bergum does not dispute that Lincoln Wescott and Annie Wescott applied for and received coal patents for lands that now constitute the Subject Real Property. Applying Superior Coal Co. to the case at bar, Bergum is estopped from denying the Subject Real Property is a mining claim and can be taxed as such. Lincoln Wescott and Annie Wescott paid the United States a combined $3,205.80 for the Subject Real Property and the County Assessor gave it a taxable value of $3,207. Superior Coal Co. held that the taxable value should be set by what was paid for the mining claim and is constitutionally assessed on the minerals, even if undeveloped. Additionally if the surface of a mining claim is sold, it is legally separate, and may also be taxed. The taxes assessed on the Subsurface Rights from 1941 to 1945 were constitutional and valid. The validity of the taxes assessed disproves Bergum’s argument that no taxes were delinquent. Instead, the taxes were validly assessed and delinquent because they were unpaid. The first exception to § 2214, RCM (1935), does not apply. b. Exception 2: “redemption had been made from said tax sale.” ¶20 Bergum argues that Musselshell County’s practice, which allowed Charles Wilson to redeem only a portion of the Subject Real Property in 1941, was illegal. Bergum contends that Charles Wilson’s redemption in 1941 was for the entire Subject Real Property, not just for the “surface rights only,” as the redemption document states. Bergum claims that the Subject Real Property was fully redeemed in 1941 and, as a result, the tax deed issued to Musselshell County in 1946 for the Subsurface Rights was invalid. A coal patent “carries with it the title to the surface included within the lines of the mining location, as well as to the land beneath the surface.” Hansard Mining, Inc. v. McLean, 2014 MT 199, ¶ 20, 376 Mont. 48, 335 P.3d 711; citing Deffeback v. Hawke, 115 U.S. 392, 406, 6 S. Ct. 95, 101 (1885). At the time Charles Wilson partially redeemed the Subject Real Property in 1941, § 2211 RCM (1935), entitled “Redemption from tax sale — piecemeal redemption,” explicitly authorized property owners to partially redeem their property from a tax sale. If the redeemer pays a portion of the tax owed, “the county treasurer shall apportion the tax for the portion sought to be redeemed.” Section 2211, RCM (1935). Also, Superior Coal Co., addressed and clarified that it is possible to divide mining claims and subsequently create two independent legal estates — one for the surface and one for the subsurface. Superior Coal Co., 98 Mont. at 521, 41 P.2d at 23. Charles Wilson’s redemption in 1941 stated that it was partial, for the “surface rights only.” Piecemeal redemption was specifically authorized. The second exception to § 2214, RCM (1935), does not apply. ¶21 We conclude that the District Court correctly determined that neither exception to § 2214, RCM (1935), applied to Bergum’s current quiet title action. Therefore, the District Court also correctly determined that the one-year statute of limitations of § 2214, RCM (1935), applied and barred Bergum’s claim. ¶22 2. Did the District Court err in denying Musselshell County its attorney fees under § 25-7-105, MCA? ¶23 On December 7,2011, Bergum offered five dollars in exchange for Musselshell County’s consent to quiet title in her favor. On December 21, 2011, Musselshell County counter offered “a one-pound lump of coal, suitable for placement in a Christmas stocking” and to forgo recovery of its attorney fees and costs incurred during litigation in exchange for Bergum dismissing her action to quiet title. On appeal, Musselshell County contends that, under § 25-7-105, MCA, it was entitled to attorney fees, totaling $82,374, because of this counter offer. That statute reads, in pertinent parts: 1) At any time more than 60 days after service of the complaint and more than 30 days before the trial begins, any party may serve upon the adverse party a written offer to settle a claim for the money or property or to the effect specified in the offer.... If the final judgment is less favorable to the offeree than the offer, the offeree shall pay the costs incurred by the offeror after the offer was made.... 3) For the purposes of this section, costs include reasonable attorney fees. 4) This section applies only to an action or claim for which the amount contained in a pleading is $50,000 or less, exclusive of costs, interest, and service charges, and the action or claim: a) arises from contract or breach of contract, other than a contract of insurance, bond, surety, or warranty; or b) involves real property. Section 25-7-105, MCA (emphasis added). ¶24 As an initial matter, the parties dispute whether Musselshell County’s counter offer was a valid offer or whether it was more favorable to Bergum than the final judgment. Bergum argues that Musselshell County’s letter did not constitute a legitimate offer. Bergum also argues that a one-pound lump of coal, shared between Barbara Brown Bergum, Richard Brown, Jeannette Studer, Caroline Y. Houston, Kathy F. Arnoux, and Ethel Gentry is not a “more favorable” result than the final judgment, which quieted title in Musselshell County’s favor. In her briefing to this Court, Bergum claims that a one-pound lump of coal is worth $0.0058, and that she and the five other appellants would receive $0.000967 each. Bergum argues that offering six people half of a penny to share is not more favorable than the final judgment and should not be the basis for an award of attorney fees. ¶25 We decline to address whether Musselshell County’s offer was legitimate, as the District Court’s decision did not rest upon these grounds. We nevertheless observe that the portion of Musselshell County’s offer, relating to a one-pound lump of coal, strikes us as unprofessional and inconsistent with what we would expect from a public entity. Regardless of whether Musselshell County’s offer was valid or a more favorable result to Bergum than the final judgment, § 25-7-105(4), MCA, only allows attorney fees if the amount contained in the pleading is $50,000 or less. Without considering the legitimacy of Musselshell County’s offer, the District Court concluded that Musselshell County had “failed to establish that the value of the subject property is less than $50,000 as required by Mont. Codes [sic] Ann. § 25-7-105 (3) and (4).” As proof of the amount contained in Bergum’s complaint to quiet title to the Mineral Right of Entry in the Subject Real Property, Musselshell County offered a copy of a coal lease which had been executed on a parcel of land adjacent to the Subject Real Property. The District Court held that this evidence “is, without more, insufficient to establish that the value of the entire subsurface estate is worth less than $50,000.” ¶26 Musselshell County argues the District Court erred by failing to hold an evidentiary hearing to determine whether the value contained in Bergum’s complaint is worth less than $50,000. Bergum counters that Musselshell County never requested the District Court hold a hearing. Musselshell County relies on several pages of its pleading entitled Response in Opposition to Motion to Have Memorandum of Costs Taxed and Reply in Support of Memorandum of Costs as evidence of its contention that “[t]he necessity of a hearing was made known to the District Court.” Upon review, that pleading notified the District Court that if attorney fees were awarded, a hearing would be required to determine whether the attorney fees were “reasonable.” However, the District Court did not award attorney fees, thus, under Musselshell County’s own reasoning, a hearing was not required. We conclude that the District Court’s failure to hold an evidentiary hearing on the amount in the complaint was not in error because Musselshell County did not request such a hearing. Instead, the District Court relied on evidence Musselshell County provided to conclude that it had failed to prove the amount contained in Bergum’s complaint was less than $50,000. ¶27 Musselshell County introduced insufficient evidence to establish that the requirements of § 25-7-105(4), MCA, were met. We conclude that the District Court did not abuse its discretion in denying Musselshell County its attorney fees under § 25-7-105, MCA. CONCLUSION ¶28 Affirmed. JUSTICES WHEAT, COTTER and SHEA concur. The legal description of the Subject Real Property is NW 1/4 W 1/2 SW 1/4, SE 1/4, SW 1/4, SW 1/4 SE 1/4 of Section 2, Township 6 North, Range 27 East P.M.M. See 30 U.S.C.S. § 71 (LexisNexis, Lexis Advance through Pub. L. No. 114-15, approved December 28, 2015 (derived from Act of March 3, 1873, 17 Stat. 607 (1873)).
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Kenneth Russell Davis, (hereinafter “Russell”), appeals from an order from the Eighth Judicial District Court, Cascade County, which affirmed the Standing Master’s Findings of Fact, Conclusions of Law and Order Amending Parenting Plan. The Amended Final Parenting Plan awarded primary custody of H.D., the parties’ child, to Appellee Jennifer Missel (hereinafter “Jennifer”), during the school year. We affirm and address the following issue on appeal: ' Did the District Court err by affirming the Standing Master’s Order Amending the Parenting Plan? PROCEDURAL AND FACTUAL BACKGROUND ¶2 Jennifer and Russell are the parents of H.D., who is five years old. Jennifer lives in Jackson, Wyoming, and Russell lives in Great Falls, Montana. The couple dissolved their marriage in 2012 (H.D. was two years old at the time), and when issuing the decree of dissolution, the District Court approved a stipulated parenting plan that the parties had entered. This stipulated plan provided that H.D. would split her time equally between the parties, spending two weeks at a time with each parent in their respective homes in different states. Both Jennifer and Russell contemplated enrolling H.D. in kindergarten in the fall of 2015, at which time it became apparent the stipulated plan would need to be revised. Russell filed a Motion to Modify the Parenting Plan in November 2014, and Jennifer responded with her own proposed parenting plan. The District Court’s Standing Master held a hearing in July 2015, and issued Findings of Fact, Conclusions of Law and Order Amending Parenting Plan on August 7 that placed H.D. with Jennifer during the school year. The Standing Master found that both parents held a “very close and loving” relationship with H.D., and that “H.D. is well adjusted to both her communities and families” located in Jackson and in Great Falls. However, the Standing Master also found that “[djuring Russ[ell]’s parenting time Jennifer has difficulty contacting H.D. Russ[ell] frequently does not answer the phone and Jennifer does not have uninterrupted Skype visits.” In addition, the Standing Master found that “[i]t is difficult for Jennifer to communicate with Russ[ell] regarding H.D. because Russ[ell] has blocked Jennifer’s phone number on his phone,” that “Russ[ell] has negative views of Jennifer and her home,” and that “Russ[ell] does not always discuss parenting issues with Jennifer. For example, the parties each take H.D. to the Baptist church in their area. Recently Russ[ell] has been taking H.D. to the Latter Day Saints church without discussing this with Jennifer.” ¶3 Russell filed objections to the Standing Master’s Order with the District Court, and the District Court affirmed the Order on September 29, 2015. Russell appeals. STANDARD OF REVIEW ¶4 “Two standards of review are relevant in cases involving both a standing master and the district court: the standard the district court applies to the master’s report and the standard we apply to the district court’s decision.” In re Marriage of Kostelnik, 2015 MT 283, ¶ 15, 381 Mont. 182, 357 P.3d 912 (citing In re G.J.A., 2014 MT 215, ¶ 11, 376 Mont. 212, 331 P.3d 835). We review a district court’s decision de novo to determine whether it applied the correct standard of review to a standing master’s findings of fact and conclusions of law. See G.J.A., ¶ 11. “A district court reviews a standing master’s findings of fact for clear error, and its conclusions of law to determine if they are correct.” Kostelnik, ¶ 15 (citations omitted). DISCUSSION ¶5 Did the District Court err by affirming the Standing Master’s Order Amending the Parenting Plan ? ¶6 Russell argues it was error for the Standing Master and the District Court to weigh his religious choice as a factor in determining child custody without a thorough evaluation of the effects of that religious choice on the child. Russell urges adoption by this Court of “an enhanced standard” that would “protect religious liberty while ensuring child custody decisions are made in the best interest of the child.” Russell offers that the new rule should require that “[bjefore placing any weight on custodial parent’s exercise of religious choice,... the Court must expressly determine, on competent evidence, whether that religious choice impairs the child’s emotional development. Absent that evaluation, religious choice should not be considered, whether directly or indirectly.” ¶7 Presented with the motion to amend the parenting plan, the Standing Master had to determine with which parent to place H.D. for the quickly-approaching school year. Both parents testified before the Standing Master. Jennifer testified that when H.D. was in Russell’s care for his two-week periods, she would have trouble communicating with H.D. through Skype or the phone. Jennifer further testified that she and Russell communicated exclusively through email, as Russell had blocked her number on his phone. In his testimony, Russell dismissed the breakdowns in communication during his parenting time as occurring because “we get busy,” but stated that the breakdowns were not happening purposefully. He admitted that he had not been participating recently in transporting H.D. to the mutually agreed exchange location, half-way between the parties’ Wyoming and Montana homes, electing instead to have his parents take H.D. to the location in order to avoid contact with Jennifer. When asked if he had spoken to Jennifer about the decision to take H.D. to a different church in Great Falls, Russell acknowledged he had not consulted her. ¶8 In making her determination, the Standing Master entered detailed findings regarding the mandatory best interest factors set forth in § 40-4-212(l)(a)-(m), MCA. The Master found that both Jennifer and Russell “are fit and appropriate parents who provide a nurturing, secure and loving home for H.D.” She further determined, under § 40-4-212(1)(1), MCA, that “Russ[ell] has very negative views of Jennifer and her home, including long standing concerns that Jennifer is attempting to harm him. Russ[ell] does not communicate with Jennifer about important parenting issues and is not responsive to Jennifer’s efforts to stay in touch with H.D. during Russ[ell]’s parenting time.” The Master ultimately concluded that Jennifer’s proposed parenting plan was in H.D.’s best interest, and entered an Amended Final Parenting Plan accordingly. ¶9 The Standing Master’s concerns about the difficulties in communication between Russell and Jennifer were properly drawn from the evidence presented at the hearing. The Master’s reference to Russell unilaterally taking H.D. to a particular church during his parenting time was not a criticism of Russell’s religious preference, but rather an example of the real problem — Russell’s deficits in cooperatively co-parenting with Jennifer. The District Court also recognized this, and after articulating the correct standard of review, affirmed the Standing Master’s Order and Amended Final Parenting Plan. See G.J.A., ¶ 11. ¶10 Upon an independent review of the record, we find no error in the District Court’s affirmance of the Standing Master’s Order. Because this case is resolved within the confines of the applicable standard of review, we decline to adopt a new constitutional standard in regard to consideration of religious factors in child custody determinations. Russell’s religious preference itself was not a factor in the Standing Master’s decision, and “as a matter of longstanding principle, courts avoid constitutional issues whenever possible.” State v. Kolb, 2009 MT 9, ¶ 13, 349 Mont. 10, 200 P.3d 504. ¶11 Affirmed. JUSTICES COTTER, BAKER, McKINNON and SHEA concur.
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Tanre Deshazer appeals an order of the Twenty-First Judicial District Court, Ravalli County, denying his motion to dismiss a charge of felony theft by common scheme for improper venue. We address the following issue: Whether the District Court erred when it denied Deshazer’s motion to dismiss for improper venue. ¶2 We affirm. PROCEDURAL AND FACTUAL BACKGROUND ¶3 In December 2013, the State of Montana charged Deshazer with felony theft by common scheme for double-cashing seven paychecks issued by SS Staffing Inc., an employment agency located in Ravalli County. SS Staffing issued the paychecks for Deshazer’s work as a temporary employee at The Springs, a senior living community in Missoula County. ¶4 Between October and December 2012, Deshazer electronically deposited the seven paychecks to his Bank of America account via a mobile banking application on his smartphone. Using the application, Deshazer sent a photograph of each paycheck and a note of its amount to Bank of America for deposit. After making the electronic deposits, Deshazer retained the physical paychecks; then, between February and April 2013, Deshazer endorsed, submitted, and received cash for those same paychecks at either a Walmart or an Albertson’s in Missoula. Bitterroot Valley Bank in Ravalli County, where SS Staffing does its banking, honored all fourteen deposits and later reimbursed SS Staffing for the duplicate charges. ¶5 In April 2013, an SS Staffing employee reported the double-cashed paychecks to the Hamilton Police Department in Ravalli County. Deshazer admitted to double-cashing the paychecks, and the State charged him in Ravalli County with one count of felony theft by common scheme. Deshazer moved to dismiss the charges against him, alleging that they were brought in an improper venue. At a May 8, 2014 pre-trial hearing, the District Court verbally denied Deshazer’s motion, concluding that Ravalli County was a proper venue. The District Court issued its written opinion and order denying Deshazer’s motion on June 2, 2014. The District Court concluded that the State could charge Deshazer with theft in Ravalli County because the stolen funds were unlawfully transferred from SS Staffing’s bank account at Bitterroot Valley Bank in Ravalli County. ¶6 On June 3, 2014, at the conclusion of a non-jury trial, Deshazer was convicted of felony theft by common scheme. The parties stipulated to $1,549.03 in restitution, and Deshazer was sentenced to a five-year commitment to the Department of Corrections. On appeal, Deshazer contends that the District Court erred by denying his motion to dismiss for improper venue. STANDARD OF REVIEW ¶7 We review de novo a district court’s grant or denial of a motion to dismiss in a criminal case. State v. Young, 2007 MT 323, ¶ 24, 340 Mont. 153, 174 P.3d 460. DISCUSSION ¶8 Whether the District Court erred when it denied Deshazer’s motion to dismiss for improper venue. ¶9 The Montana Constitution safeguards a criminal defendant’s right to a trial by a. “jury of the county or district in which the offense is alleged to have been committed.” Mont. Const, art II, § 24. In line with this provision, § 46-3-110(1), MCA, requires criminal charges to be filed “in the county where the offense was committed.” However, when the requisite acts of a criminal offense occur in more than one county, “the charge may be filed in any county in which any of the acts or offenses occurred.” Section 46-3-112(1), MCA. Similarly, “if the county in which the offense was committed cannot be readily determined, the offender may be charged in any county in which it appears that an element of the offense occurred.” Section 46-3-114(1), MCA. ¶10 The State charged Deshazer with the crime of felony theft by common scheme pursuant to § 45-6-301(1), MCA. “A person commits the offense of theft when the person purposely or knowingly obtains or exerts unauthorized control over property of the owner” with “the purpose of depriving the owner of the property.” Section 45-6-301(1), MCA. Felony theft thus consists of two elements: “a knowing exertion of control and a purpose to deprive.” State v. Eagle Speaker, 2000 MT 152, ¶ 13, 300 Mont. 115, 4 P.3d 1 (citing § 45-6-301(1)(a), MCA (Compiler’s Cmts.)). Under the Montana Constitution, the State had the authority to bring charges against Deshazer in any county in which either of these elements occurred. See Eagle Speaker, ¶ 24 (“[T]he offense of theft occurs for jurisdictional purposes where the elements of that offense take place.”). ¶11 The parties dispute the moment in time at which Deshazer “knowingly exert[ed] unauthorized control” over the property of SS Staffing. See § 45-6-301(1), MCA. In its order denying Deshazer’s motion to dismiss, the District Court concluded that Ravalli County was an appropriate venue because “the requisite act of exerting unauthorized control over money occurred when Deshazer cashed each of the 7 checks a second time, causing funds to be unlawfully transferred from SS Staffing’s bank account at Bitterroot Valley Bank, thereby acting negatively upon these two Ravalli County based entities.” On appeal, Deshazer contends that Ravalli County was not a proper venue because “Mr. Deshazer completed the theft when he accepted the cash” and, thus, “[e]very element of Mr. Deshazer’s theft transpired within Missoula County.” By contrast, the State contends that “[ujnauthorized control did not occur until Bitterroot Valley Bank transferred the funds” for the duplicate checks. ¶12 “[A] theft is complete once all the elements of the theft transpired.” Eagle Speaker, ¶ 15. The State cites State v. Cline, 170 Mont. 520, 555 P.3d 724 (1976), to support its argument that Deshazer’s theft was not complete until the funds for the duplicate checks were retracted from SS Staffing’s bank account at Bitterroot Valley Bank. In Cline, we held that Lewis and Clark County was a proper venue to charge a defendant with obtaining money by false pretenses because one of the elements of that crime — “fraud in obtaining the state’s settlement money” — occurred “in Lewis and Clark County where the settlement money was disbursed.” Cline, 170 Mont. at 533, 555 P.3d at 732-33. Deshazer attempts to distinguish Cline by arguing that, in Cline, “the disbursal action completed the element of fraud.” By contrast, Deshazer argues, a theft charge does not require a victim to assent to action, so Deshazer committed a theft “as soon as” he received cash for his paychecks at Albertson’s or Walmart. ¶13 Section 45-6-301(1), MCA, specifically requires the exertion of “unauthorized control over the property of the owner” (emphasis added). The parties do not dispute that SS Staffing owned the bank account from which the money for Deshazer’s duplicate paychecks was retracted. Until the funds were transferred out of SS Staffing’s account, Deshazer did not exert unauthorized control over SS Staffing’s property. We find Deshazer’s attempt to distinguish Cline unpersuasive. ¶14 SS Staffing, based in Ravalli County, issued Deshazer’s paychecks. Deshazer first electronically deposited seven paychecks into his own bank account. He then took the same seven paychecks to retailers in Missoula County and received cash in exchange for them. Deshazer did not obtain control of SS Staffing’s property until the duplicate amounts were transferred from SS Staffing’s bank account at Bitterroot Valley Bank. ¶15 Had Deshazer’s theft been interrupted immediately after he had cashed the checks, or had Bitterroot Valley Bank refused to honor the checks before retracting the money from SS Staffing’s bank account, then Deshazer’s theft would have been perpetrated against Walmart and Albertson’s, since they would have been the “owners” of the money over which he had exercised “unauthorized control.” See § 45-6-301(1), MCA. But that is not what happened in this case. The checks were honored, and duplicate funds were retracted from SS Staffing’s account, thus completing Deshazer’s theft of SS Staffing’s funds. Accordingly, the element of theft requiring the exertion of unauthorized control over property of the owner occurred in Ravalli County when the stolen funds were transferred out of SS Staffing’s bank account. The District Court did not err in concluding that Ravalli County was a proper venue for the State to charge Deshazer with felony theft by common scheme. CONCLUSION ¶16 We affirm the District Court’s decision and order denying Deshazer’s motion to dismiss for improper venue. CHIEF JUSTICE McGRATH, JUSTICES COTTER, McKINNON and RICE concur. Deshazer requests that this Court take judicial notice of the Secretary of State’s Registry that Bitterroot Valley Bank is located in Lolo, in Missoula County. We decline to do so, as that fact was not presented below and we “will not consider on appeal facts that are not found in the record.” State v. Bromgard, 273 Mont. 20, 23, 901 P.2d 611, 613 (1995).
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ORDER ON PETITION FOR REHEARING AND MOTION TO STAY Plaintiffs Montana Cannabis Industry Association, et al., seek rehearing of this Court’s February 25, 2016, Opinion upholding most provisions of the 2011 Montana Marijuana Act, §§ 50-46-301 to -344, MCA. In particular, Plaintiffs ask this Court to reconsider and reverse its ruling that the three-person limit on the number of medical marijuana patients a provider may serve passes constitutional muster under a rational basis test. Mont. Cannabis Ind. Assoc. v. State of Montana, 2016 MT 44, ¶¶ 50, 83 (MCIA II). In addition, Plaintiffs request the Court to delay the effective date of its Opinion in order to provide a transition period and to give the Legislature an opportunity to consider modifications to the Act. The State opposes rehearing and offers that the same 49-day transition period the 2011 Legislature provided in the Act would be an appropriate transition period for the effective date of the Court’s Opinion. S.B. 423 § 35, 62d Leg. Reg. Sess. (Mont. 2011). This Court will consider a petition for rehearing only on the following grounds: “(i) [t]hat it overlooked some fact material to the decision; (ii) [t]hat it overlooked a question presented by counsel that would have proven decisive to the case; or (iii) [t]hat its decision conflicts with a statute or controlling decision not addressed by the supreme court.” M. R. App. P. 20(1)(a). We conclude that Plaintiffs are not entitled to rehearing on the three-patient limit, § 50-46-308(3), MCA. Although Plaintiffs argue that the Court’s Opinion “overlooks the larger picture and effects an irrational result,” they primarily reargue matters contained in their briefs on appeal that the Court thoroughly considered in reaching its decision. Plaintiffs’ arguments do not meet the standards for granting rehearing under the Rule. They present a different question in the alternative relief they seek in their petition. Plaintiffs request that the second question they raise should be treated as a petition to stay the remittitur. Plaintiffs ask the Court to delay the effective date of the Opinion until the conclusion of the next legislative session. They include with their Petition an affidavit from Roy Kemp, Interim Administrator of the Quality Assurance Division of the Montana Department of Public Health and Human Services, discussing the status of the Department’s administration of the medical marijuana program, the number of patients and providers in the Montana Marijuana Registry, and the complexity of the regulatory adjustments that the Department will have to undertake in the aftermath of the Court’s decision. Kemp states that it will take at least four months for DPHHS to implement the required regulatory changes associated with this Court’s decision. It is rare, but not unprecedented, that this Court will delay the effective date of its decision. We have done so only when we conclude that the Court’s ruling will cause serious disruption or a void in the law. In Helena Elementary Sch. Dist. No. 1 v. State of Montana , 236 Mont. 44, 784 P.2d 412 (1990), we held that our February 1, 1989, opinion declaring unconstitutional the state’s system of funding public education would not take effect “until July 1, 1991, and on that date the holdings of this Opinion shall become fully in effect for all purposes.” Helena Elem. Sch. Dist. No. 1, 236 Mont. at 59, 784 P.2d at 413 (Supplemental Opinion). We concluded “that the Court possesses the equitable power to postpone the effect of its opinion to allow the legislature and the governor’s office time to implement a satisfactory system of school funding in this State.” Helena Elem. Sch. Dist. No. 1, 236 Mont. at 60-61, 784 P.2d at 413 (emphasis added). We declined to retain jurisdiction because legislative changes would require new and different proof and could be addressed, if necessary, “in a new and separate court action.” Helena Elem. Sch. Dist. No. 1, 236 Mont. at 60-61, 784 P.2d at 413. In Lee v. State of Montana, 195 Mont. 1, 635 P.2d 1282 (1981), we held invalid a statute requiring the attorney general to declare by proclamation a statewide speed limit whenever required by federal law as a condition to receiving federal highway funds. Given the “grave damage to the economy” if federal funds were to be discontinued because of the Court’s decision, we determined that the law should remain in effect until such time as “the legislature may enact and the governor approve maximum speed limit legislation comporting with the federal requirements and complying with our state constitution.” Lee, 195 Mont. at 11, 635 P.2d at 1287. As the State points out, there is one important distinction between these previous decisions and the instant case. Here, we have, with one exception, upheld the Legislature’s actions; we have not invalidated the Act and our decision does not require further action by the Legislature. We are cognizant, however, that immediate implementation of the Court’s Opinion will cause serious disruption in a program that is regulated by the State and has been operating for a considerable period of time. This case is unique because, while the legislative restrictions have been on the books for nearly five years, the medical marijuana business has been developing — first under the 2004 Medical Marijuana Act and then under the District Court’s injunctions — for over a decade, and there are now more than 13,500 Montanans receiving marijuana for medical purposes. The transition period provided by the 2011 Legislature has long since passed, and the events of the previous years have built public reliance on the regulatory system in place that has allowed limited access to medical marijuana for qualified individuals. Plaintiffs submitted extensive evidence during the District Court proceedings of the impacts that the Act will have on individuals with debilitating medical conditions. We concluded, properly, that such evidence was not relevant to the consideration whether the Legislature had acted within the limits of its constitutional authority in enacting the challenged restrictions. That ruling stands. The evidence is, however, relevant to the consideration whether to delay the effective date of the Court’s Opinion in order to provide some transition period for the Executive Branch and members of the public to come into compliance with the law. The District Court found from the evidence in the record, based primarily on the testimony of State agency representatives, that in light of other provisions in the 2011 Act, there was no evidence that concerns motivating the Act’s passage remained — including “marijuana caravans, abuse of the law by young and otherwise healthy individuals, crimes connected to grow operations, storefronts and improper advertising, [and] growth of the commercial marijuana industry.” On the other hand, the District Court cited evidence of severely debilitated individuals who are physically unable to grow marijuana for their own medical use, and of individuals who live in federally subsidized housing, which would prohibit them from attempting to grow marijuana for their own use. These facts tend to show that, due to the long delay in implementation of the Act, many Montanans may experience hardship, or be exposed to the potential for criminal liability, if the Court’s decision takes effect immediately. In addition, regulatory changes have occurred that will have to be substantially altered in order for the Act to be implemented consistent with the Court’s Opinion. We stated in Lee, “We have the power as an appellate court to order the effect of our decision to be retrospective or prospective, and in effect, to postpone the effective date of our decision. Such action is in order here.” Lee, 195 Mont. at 10-11, 635 P.2d at 1287. Under the unique circumstances of this case, we conclude that similar action is warranted here. We deny the Plaintiffs’ request, however, to postpone the decision until the next Legislature meets; to do so would interfere with the implementation of what we have held to be a valid Act. Suspending a law that we have held to be constitutional until the Legislature revisits it would insert the judiciary into the legislative process and would violate the separation of powers. IT IS THEREFORE ORDERED that the effective date of the Court’s decision and judgment in MCIAII is POSTPONED to August 31, 2016. On that date, the holdings of this Court’s Opinion shall become fully in effect for all purposes. We decline to retain jurisdiction in this matter, but hereby AMEND our February 25, 2016 Opinion with this Order. IT IS FURTHER ORDERED that, in all other respects, the Petition for Rehearing is DENIED. The Clerk of this Court is hereby directed to issue remittitur and to give immediate notice of this Order to all counsel of record and to the Director of the Department of Public Health and Human Services. Dated this 25th day of April, 2016. /S/ MIKE McGRATH /S/BETH BAKER /S/ JAMES JEREMIAH SHEA /S/ ROBERT G. OLSON, sitting for JUSTICE PATRICIA COTTER
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Plaintiff JAS, Inc. appeals the order of the Thirteenth Judicial District Court, Yellowstone County, which granted the defendants’ motion for summary judgment and voided the Trustee’s Sale at which JAS purchased the property at issue. After the Trustee’s Sale, JAS brought a quiet title action to the property against all the defendants listed in the caption of this case including Mortgage Electronic Systems, Inc. (MERS), Countrywide Home Loans, Inc., and OneWest Bank, FSB. MERS is the only original defendant remaining in this appeal. Bank of America, N.A. (BOA), the successor to Countrywide, intervened. We affirm. ¶2 We restate the issues on appeal as follows: 1. Whether Bank of America’s actual or constructive notice of the Trustee’s Sale precludes it from objecting to the sale on the basis of failure of strict compliance with the Small Tract Financing Act of Montana. 2. Whether Bank of America was entitled to notice of the Trustee’s Sale when it did not have a recorded interest in the property at the time of the sale. 3. Whether JAS is entitled to repayment of the funds it paid to OneWest Bank for the property purchased at the Trustee’s Sale. PROCEDURAL AND FACTUAL BACKGROUND ¶3 In 2004, Richard and Laurie Eisele entered into a loan with IndyMac, FSB to purchase a residence located at 6333 Bristlecone Place. The loan was secured by a Deed of Trust dated May 18, 2004. In November 2005, the Eiseles entered into a loan with Countrywide. This loan was secured by a second position lien on the Bristlecone property and a Deed of Trust dated November 23, 2005. In 2008, BOA purchased Countrywide. BOA contends that Countrywide’s interest in the Bristlecone property was transferred to it at that time. ¶4 On March 5, 2010, IndyMac assigned the May 18, 2004 Deed of Trust to OneWest Bank. In early 2011, the Eiseles defaulted on their loan to OneWest Bank. The Trustee and Beneficiary associated with the Bristlecone property agreed to sell the property by Trustee’s Sale. ¶5 The Trustee prepared a Notice of Trustee’s Sale on May 6, 2011, indicating that the Bristlecone property would be sold on September 13, 2011. An Affidavit of Mailing, filed on May 16,2011, indicates that the May 6 Notice was mailed to the Eiseles, Countrywide, and MERS. On June 30, 2011, the Trustee issued a Cancellation of Notice of Trustee’s Sale. On July 11,2011, the Trustee issued a second Notice of Trustee’s Sale, stating the sale would be conducted on November 15, 2011. No Affidavit of Mailing pertaining to the November sale was issued; therefore, we do not know who was served with the second Notice. It is undisputed, however, that BOA was not personally served with notice of either scheduled Trustee’s Sale. ¶6 At the Trustee’s Sale on November 15, 2011, JAS purchased the Bristlecone property for $282,488.08. A Deed of Sale was issued on November 17,2011. JAS is a company owned by Steve Zimmer through which Zimmer purchases properties at trustee sales, remodels or repairs the properties, and then resells them. Zimmer testified that he purchased the Bristlecone property with the intent that it serve as his family’s residence. ¶7 Several days after the Trustee’s Sale, a representative of Northwest Trustee Services, Inc. (NTS) approached Zimmer and offered to purchase the Bristlecone property. According to the District Court’s order, NTS had been hired to represent the interests of BOA at the Trustee’s Sale. Following negotiations, JAS agreed to sell the property to NTS for $473,000. On December 2, 2011, NTS presented JAS with a cashier’s check issued by BOA for the agreed-upon amount. ¶8 While awaiting the completion of the sale of the Bristlecone property to NTS, Zimmer and his wife made several visits to the house. On or around December 9, 2011, they found a notice indicating that Field Assets Services, LLC had winterized the house. Not having requested such services, the Zimmers called Field Assets and were told that BOA had requested and paid for the winterizing services. During this time, the Zimmers also learned that BOA had retained an engineering firm to perform a structural assessment of the house. ¶9 On approximately December 15, 2011, NTS withdrew its offer to purchase the property and requested the return of BOA’s cashier’s check. NTS claimed that there had been a flaw in the way the Trustee’s Sale was conducted, and that the sale to JAS was therefore void. JAS returned the check as requested. ¶10 JAS filed a quiet title action in the Thirteenth Judicial District Court on February 8, 2012. JAS named as defendants those parties listed in the caption of this case and served them with the complaint. JAS did not name or serve BOA as a defendant. Subsequently, numerous defendants were dismissed from the proceeding after disclaiming an interest in the property, while others, including Countrywide, MERS, and OneWest Bank, were defaulted. ¶11 On July 11, 2012, the District Court entered its Final Judgment and Decree, quieting title to JAS. Notice of entry of this final judgment was filed the same day. On July 16, 2012, apparently without knowledge that default judgment had been entered on July 11, 2012, Countrywide and MERS filed a joint motion to have the entries of default against them set aside. On July 24, 2012, BOA moved to intervene under M. R. Civ. P. 24(a) and to have the default judgment against Countrywide set aside. BOA also filed an answer to JAS’s complaint. ¶12 On June 26, 2013, the District Court granted MERS’s motion to have the entry of default set aside and BOA’s motion to intervene. JAS appealed the rulings to this Court. We concluded that the District Court did not manifestly abuse its discretion in granting MERS’s motion to set aside the default judgment, nor did it err in granting BOA’s motion to intervene. JAS, Inc. v. Eisele et al., 2014 MT 77, ¶ 38, 374 Mont. 312, 321 P.3d 113 (JAS I). We did not analyze the order setting aside the default judgment against Countrywide “[b]ecause the [District Court] properly allowed BOA to intervene^] and it is the actual party in interest.” JAS I, ¶ 28. ¶13 Following the 2014 appeal, JAS moved for summary judgment against BOA and MERS. BOA moved for summary judgment against JAS. The District Court held a hearing on the motions on November 24, 2014. Neither JAS nor BOA requested or conducted additional discovery; therefore, no additional facts were presented for consideration by the court. ¶14 On January 15, 2015, the District Court issued an order granting BOA’s motion for summary judgment and denying JAS’s motion. The court held that the November 15,2011Trustee’s Sale oftheBristlecone property was void ab initio for failure to strictly follow Montana’s foreclosure laws. It held that a new Trustee’s Sale of the Bristlecone property must occur. ¶15 On February 3, 2015, JAS moved to alter or amend the January 15, 2015 order. JAS requested that the court substitute JAS for the original foreclosure entity, OneWest Bank, so that JAS could conduct a new Trustee’s Sale. JAS also asked the court to limit the notice requirements to the only remaining defendants, BOA and MERS, because all other interested parties previously defaulted in the action. In its reply brief in support of its motion, JAS alternatively requested that the court order OneWest Bank to return the $282,488.08 that JAS paid for the Bristlecone property in the first Trustee’s Sale. ¶16 On March 9,2015, the District Court denied JAS’s motion to alter or amend. The court held that JAS could have raised all of its arguments in the summary judgment proceedings, and JAS had ample time to consider the consequences of the November 15, 2011 Trustee’s Sale being found void ab initio. The District Court further noted that it was inappropriate for JAS to request limited notice requirements for a new Trustee’s Sale because the November 15, 2011 Trustee’s Sale was found void ab initio “precisely because the Court could not determine who properly received notice” of the sale. The court also denied the repayment of the $282,488.08 JAS paid for the Bristlecone property because it was not raised in JAS’s original summary judgment motion. ¶17 JAS appeals the District Court’s January 15,2015 order, denying summary judgment to JAS and granting summary judgment in favor of BOA. STANDARDS OF REVIEW ¶18 “We review a district court’s grant of summary judgment de novo.” Knucklehead Land Co., Inc. v. Accutitle, Inc., 2007 MT 301, ¶ 10, 340 Mont. 62, 172 P.3d 116. We apply the same criteria as M. R. Civ. P. 56. Summary judgment is proper when the moving party meets its burden and establishes both the absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Knucklehead, ¶ 10. “The burden of proof then shifts to the non-moving party to prove beyond mere speculation and denial that a genuine issue of material fact exists.” Knucklehead, ¶ 10. DISCUSSION ¶19 1. Whether Bank of America’s actual or constructive notice of the Trustee’s Sale precludes it from objecting to the sale on the basis of failure of strict compliance with the Small Tract Financing Act of Montana. ¶20 The Small Tract Financing Act of Montana (STFA), §§ 71-1-301 to -321, MCA, allows the use of trust indentures to finance estates of real property that are smaller than 40 acres. Section 71-1-302, MCA. A Trustee may foreclose a trust indenture by advertisement and sale. Section 71-1-313, MCA. “[T]he trustee is subjected to strict notice requirements before crying the sale ....” Knucklehead, ¶ 13 (citing §§ 71-1-313, -315, -319, MCA). Notice of the sale must be mailed to “any successor in interest to the grantor whose interest and address appear of record at the filing date,” and “any person who has a lien or interest... whose lien or interest and address appear of record at the filing date ....” Section 71-l-315(l)(a)(iv)-(v), MCA. The STFA also requires that, “[o]n or before the date of sale, there must be recorded in the office of the clerk and recorder ... affidavits of mailing, posting, and publication showing compliance with the requirements of this section.” Section 71-1-315(2), MCA. ¶21 JAS argues that the November 15, 2011 Trustee’s Sale was valid despite the failure to file an Affidavit of Mailing with the Clerk and Recorder. JAS contends that BOA had actual knowledge of the Trustee’s Sale because BOA hired NTS to attend the sale and bid on the Bristlecone property. JAS argues that BOA had constructive notice through publication of the Trustee’s Sale and should be precluded from objecting to the sale on the basis of failure of strict compliance with the STFA. ¶22 BOA argues that the STFA requires strict compliance, and the failure to file an Affidavit of Mailing voided the sale. In Terry L. Bell Generations Trust v. Flathead Bank of Bigfork, 2013 MT 152, 370 Mont. 342, 302 P.3d 390, the District Court voided a Trustee’s Sale for failure to follow the notice provisions of § 71-1-315, MCA. Bell, ¶ 9. In Bell, Flathead Bank held deeds of trust to property on Flathead Lake, and Bell held a later-recorded easement over the property. Bell, ¶¶ 4-5. When the property owners defaulted on their loans, Flathead Bank held a Trustee’s Sale, but Bell did not receive proper notice of the sale. Bell, ¶ 6. The Trustee held a second sale, however, of which Bell was given proper notice. Bell, ¶ 6. The District Court held that the first Trustee’s Sale was invalid for failure to give Bell proper notice, and it held that holding a second sale was proper relief. Bell, ¶ 9. This Court affirmed, holding that, “[w]hen the notice requirements are not followed, the only recourse is a second trustee’s sale where each interest holder who did not previously receive notice receives appropriate notice and has an opportunity to purchase the subject property.” Bell, ¶ 18. ¶23 In this case, we cannot know which, if any, party with an interest of record received notice of the November 15, 2011 Trustee’s Sale because no Affidavit of Mailing was filed with the District Court. The STFA contains strict notice requirements. It does not provide for an actual or constructive notice exception, and we decline to adopt one here. The District Court properly voided the sale because no Affidavit of Mailing was filed as required by § 71-1-315(2), MCA. The District Court also correctly found that, as in Bell, the proper relief is to hold a second Trustee’s Sale of the Bristlecone property. ¶24 2. Whether Bank of America was entitled to notice of the Trustee’s Sale when it did not have a recorded interest in the property at the time of the sale. ¶25 JAS argues that BOA was not entitled to notice of the November 15, 2011 Trustee’s Sale because BOA did not have a recorded interest in the property at the time of the Trustee’s Sale. It bears noting that Countrywide, BOA’s predecessor-in-interest who undisputedly had an interest of record in the Bristlecone property, was entitled to notice of the Trustee’s Sale under the STFA, and we have no way of knowing whether Countrywide received the required notice because of the failure to file the required Affidavit of Mailing. ¶26 More to the point for our consideration, however, JAS did not raise this argument in the District Court. As a general rule, “this Court will not address either an issue raised for the first time on appeal or a party’s change in legal theory.” Unified Indus., Inc. v. Easley, 1998 MT 145, ¶ 15, 289 Mont. 255, 961 P.2d 100. This is because “ ‘it is fundamentally unfair to fault the trial court for failing to rule correctly on an issue it was never given the opportunity to consider.’ ” Easley, ¶ 15 (quoting Day v. Payne, 280 Mont. 273, 277, 929 P.2d 864, 866 (1996)). Accordingly, we do not consider this argument. ¶27 3. Whether JAS is entitled to repayment of the funds it paid to OneWest Bank for the property purchased at the Trustee’s Sale. ¶28 Because we are holding that the November 15,2011 Trustee’s Sale is void ab initio, JAS requests this Court to order the return of the $282,488.08 JAS paid to OneWest Bank for the Bristlecone property. The District Court denied this request because JAS raised it for the first time in its reply brief in support of its motion to alter or amend the judgment. The District Court noted that, during the summary judgment hearing, “the parties represented to the Court that they would be able to resolve damage issues without further court involvement once the Summary Judgment motions were addressed.” Accordingly, the District Court denied JAS’s request because it concluded “[t]his argument could have been made at the Summary Judgment hearing.” ¶29 As reflected in its notice of appeal, JAS appealed only the District Court’s denial of its motion for summary judgment; it has not appealed the District Court’s order denying its motion to alter or amend the judgment. The issue of whether JAS is entitled to the return of funds it paid to OneWest Bank was not raised in its motion for summary judgment. As the District Court noted, this issue was raised for the first time in JAS’s reply brief in support of its motion to alter or amend the judgment. This Court has previously held that we will not consider an appeal from an order that is not designated in the notice of appeal. In re K.C.H., 2003 MT 125, ¶ 29, 316 Mont. 13, 68 P.3d 788. ¶30 In its January 15, 2015 order granting summary judgment to BOA, the District Court recognized that “the nullity of the sale has grave implications for the Zimmers” and expressed its expectation that the parties would pursue an “equitable result” in resolution of this case. We likewise recognize that, in light of the need to conduct a new Trustee’s Sale, equity favors JAS’s recovery of the funds it paid to OneWest Bank rather than those funds bestowing a windfall on another party. However, the District Court did not err by refusing to consider this issue, which it correctly concluded had not been properly raised. Nor is this issue properly before this Court on appeal. While it may conceivably become an issue after the second Trustee’s Sale is concluded, it is not within our province to address it at this juncture. CONCLUSION ¶31 The District Court properly voided the November 15, 2011 Trustee’s Sale for failure to comply with the notice requirements of the STFA. The issue of JAS’s recovery of the funds it paid to OneWest Bank at the November 15, 2011 Trustee’s Sale is not properly before this Court. Affirmed. JUSTICES WHEAT, McKINNON and RICE concur.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 C.L. appeals from an order entered by the Tenth Judicial District Court, Fergus County, approving the Department of Public Health and Human Service’s (Department) proposed permanency plan, and granting the Department long-term custody of J.H. ¶2 We address the following issues: 1. Did the District Court err by finding the Department made reasonable efforts to reunify J.H. with C.L. ? 2. Did the District Court err by finding that J.H.’s best interests were served by living with E.J., and not C.L. ? 3. Did the District Court err by approving the permanency plan without first holding an age-appropriate consultation with J.H. ? PROCEDURAL AND FACTUAL BACKGROUND ¶3 J.H., a seven-year-old boy, is the biological child of A.H. (Mother) and C.L. (Father). Mother and Father were never married, a custody order or parenting plan was never entered, and J.H. saw Father only occasionally. When this case originated, J.H. was living in Lewistown, Montana, with Mother, Mother’s boyfriend, J.H.’s half-sister B.S., J.H.’s maternal grandmother, and his grandmother’s boyfriend. Father was living in Lancaster, Texas, with his girlfriend, their two children, and two of his girlfriend’s children from a prior relationship. ¶4 In November 2012, the Department initiated a petition for Emergency Protective Services, for Adjudication of J.H. as a Youth in Need of Care, and for Temporary Legal Custody of J.H. The petition alleged Mother had abused and neglected J.H. by exposing him to illegal drug use and failing to protect him from her abusive boyfriend. Father was served with the Department’s petition, and shortly thereafter signed and filed an acknowledgement of service of the petition. Father expressed to Rose McLees (McLees), the Department social worker assigned to J.H.’s case, that he wanted custody of J.H. ¶5 At the January 2013 show cause hearing, at which Father was not present, Mother stipulated that J.H. was a Youth in Need of Care. The District Court granted the Department Temporary Legal Custody of J.H. for 180 days, including the initial plan to reunite J.H. with Mother. Shortly after the show cause hearing, Mother and Father participated by telephone in a Family Group Decision Making meeting with the Department. Father stated he wanted custody of J.H., but Mother objected to placing J.H. with Father. McLees stated she would not place J.H. with Father in Texas until Texas child authorities conducted a home study pursuant to the Interstate Compact on the Placement of Children (ICPC) and ensured Father’s home was a safe environment for J.H. ¶6 The Department returned J.H. to Mother’s care in February 2013, but Mother failed to comply with her treatment plan. J.H. was again removed from her care in July 2013 and returned to foster care, and the Department filed a petition to extend temporary legal custody of J.H. At the hearing, McLees stated the Department would continue to provide reunification services to Mother while simultaneously seeking a home study under the ICPC to determine whether J.H. could be placed with Father in Texas. The District Court granted the Department’s extension of temporary legal custody. ¶7 In September 2013, McLees asked Texas child protective services to conduct, under the ICPC, a home study and determine whether placement with Father was viable. After obtaining the results of criminal and child protective services background checks on Father, Texas authorities refused to conduct a home study. The background checks revealed Father had committed multiple crimes from 2006 to 2010, including two charges for selling dangerous drugs and an aggravated assault on his girlfriend involving a knife. Further, an incident involving Father and a girlfriend had resulted in the loss of the custody of two of his children to Texas child protective services. ¶8 The Department filed its first permanency plan proposal in January 2014, stating it would continue to attempt reunification of J.H. with Mother but would seek termination of her parental rights if she was noncompliant with her treatment plan. The concurrent plan was to place J.H. with a relative, and if no suitable relative could be found, to petition for long-term custody of J.H. and a permanent living arrangement in Montana. The permanency plan did not include the option of placing J.H. with Father, although that option had apparently not yet been ruled out by the Department. Meanwhile, Father filed a Motion for Disposition and to Dismiss, requesting the District Court place J.H. with Father as the non-custodial and non-offending parent. The District Court approved the permanency plan, but declined to rule on Father’s motion at that time. ¶9 In March 2014, the Department petitioned to terminate Mother’s parental rights and to extend temporary legal custody of J.H. The Department asserted that an extension of custody was necessary because, although Texas had denied an ICPC placement with Father, the Department needed additional time to determine if placement with Father could still be achieved. Father had commissioned a private home study at his own expense, and both the Department and the guardian ad litem had agreed to consider the results of the private home study. The District Court terminated Mother’s parental rights and granted the Department’s extension of temporary legal custody, which Father did not contest. ¶10 In September 2014, Texas child authorities approved J.H.’s maternal great aunt, E.J., as a kinship placement for J.H., as well as for J.H.’s half-sister B.S., with whom J.H. was very close. E. J. resided in Texas. In October 2014, the Department filed a petition to extend temporary legal custody of J.H. Father’s private home study was not yet complete and the Department wanted more time to determine whether placement with Father was viable. In the meantime, the Department planned to move J.H. and B.S. to live with E.J. in Texas, and stated that if the home study was not completed within three months, or if the home study did not recommend placement with Father, the Department would file for long-term custody of J.H. or for termination of Father’s parental rights. In December 2014, J.H. and B.S. moved to live with their Great Aunt E.J. in Texas. In January 2015, Father’s private home study was received. The study was inconclusive and the evaluator was unable to recommend Father as a viable placement for J.H. ¶11 The Department then filed a petition for long-term custody of J.H. and a second permanency plan, which sought placement of J.H. with E.J. under a guardianship. The District Court held a hearing on the permanency plan in February 2015. Michelle Feller (Feller), a licensed clinical professional counselor who counseled J.H. bi-weekly from September 2013 until he moved to Texas, testified J.H. was very close with B.S., and that it would be in J.H.’s best interests to stay with E. J., “for the reason of being with his sister and for the reason of being in a safe, secure, consistent environment.” J.H.’s guardian ad litem testified J.H.’s relationship with B.S. was critical to his well-being, that J.H. was “in an ideal place,” and that there was no reason why J.H. should not be with E.J. An ICPC social worker in Texas reported J.H.’s placement with E.J. was going well, and that E.J. was providing consistency, structure, and meeting J.H.’s basic needs. The District Court approved the permanency plan but stated the approval did not preclude a later determination that the child should be placed with Father. ¶12 The District Court later held a hearing on the petition for long-term custody and Father’s motion to dismiss. The testimony largely mirrored that of the February 2015 permanency plan hearing. Additionally, E.J. testified she was committed to caring for the children for the long term, explaining “[t]hey are mine. I mean I didn’t birth them, but they are attached to me and I’m attached to them. It’s like a blessing. They’ve been through so much.” The District Court granted the Department’s petition for long-term custody until J.H. reached the age of 18, holding that J.H. remained a youth in need of care, the Department made reasonable efforts to place J.H. with Father, it was contrary to J.H.’s best interests to be placed with Father, and J.H.’s placement with E.J. was in his best interests, particularly because B.S. also resides there. Father appeals. STANDARD OF REVIEW ¶ 13 Whether a district court complied with the statutory requirements presents a question of law that this Court reviews for correctness. In re H.T., 2015 MT 41, ¶ 10, 378 Mont. 206, 343 P.3d 159. We review a district court’s finding of fact for clear error. In re R.M.T., 2011 MT 164, ¶ 27, 361 Mont. 159, 256 P.3d 935 (citation omitted). A factual finding is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence, or if review of the record convinces the Court a mistake was made. In re C.J.M., 2012 MT 137, ¶ 10, 365 Mont. 298, 280 P.3d 899 (citation omitted). We view the evidence in the light most favorable to the prevailing party when determining whether substantial credible evidence supports the district court’s findings. In re B.D., 2015 MT 339, ¶ 5, 381 Mont. 505, 362 P.3d 636. A district court’s decision will not be disturbed on appeal unless there is a mistake of law or a finding of fact clearly erroneous that amounts to an abuse of discretion. In re M.N., 2011 MT 245, ¶ 14, 362 Mont. 186, 261 P.3d 1047 (citation omitted). DISCUSSION ¶14 Under § 41-3-445(8)(e)(v), MCA, a district court may approve a permanency plan and grant long-term custody of the child in a planned permanent living arrangement if it is established by a preponderance of the evidence that: (A) the child has been adjudicated a youth in need of care; (B) the department has made reasonable efforts to reunite the parent and child, further efforts by the department would likely be unproductive, and reunification of the child with the parent or guardian would be contrary to the best interests of the child; (C) there is a judicial finding that other more permanent placement options for the child have been considered and found to be inappropriate or not to be in the best interests of the child; and (D) the child has been in a placement in which the foster parent or relative has committed to the long-term care and to a relationship with the child, and it is in the best interests of the child to remain in that placement. ¶15 Father argues the District Court violated the statute in two ways. First, Father argues the Department did not engage in reasonable efforts to reunify J.H. with Father because its efforts consisted solely of the ICPC request. Second, Father argues the District Court’s finding that J.H.’s best interests were served by living with E.J., and not Father, was clearly erroneous because it was not supported by substantial evidence. ¶16 1. Did the District Court err by finding the Department engaged in reasonable efforts to reunify J.H. with Father? ¶17 The determination of whether the Department made “reasonable efforts” to reunify a family requires that “each case [] be evaluated on its own facts.” In re K.L., 2014 MT 28, ¶ 41, 373 Mont. 421, 318 P.3d 691. The term is not defined by statute, but “clearly the statute does not require herculean efforts.” In re K.L., ¶ 41. Rather, “the child’s health and safety are of paramount concern,” when determining what efforts are required. Section 41-3-423(1), MCA; see also In re K.L., ¶ 41 (citing “the child’s need for permanency and stability” in considering whether the Department’s efforts were reasonable). ¶18 The parties and the Guardian ad litem also argue concerning the proper application of the ICPC in this case. Under the ICPC, which Montana has joined by statute and for which the Department has adopted by rule the regulations of the Association of Administrators of the ICPC (AAICPC), neither a state court nor a child protective services agency may send a child to another state until the public authorities in the receiving state notify the sending state that “the proposed placement does not appear to be contrary to the interests of the child.” Section 41-4-101, MCA, Art. Ill, § 4; Mont. Admin. R. 37.50.901. An open dependency and neglect case requires compliance with Article III of the ICPC unless (1) the court places the child with a parent from whom the child was not removed, (2) the court has no evidence the parent is unfit and seeks none from the receiving state, and (3) relinquishes jurisdiction over the child immediately upon placement with the parent. AAICPC Reg. 3, §§ 2(b), 3(a). After finding a child is a youth in need of care, a district court may dismiss the proceeding — ending the Department’s obligations and the applicability of the ICPC — and order placement with the noncustodial parent to protect the welfare of the child. Section 41-3-438(3)(d), MCA. ¶19 The Department argues its efforts were reasonable because as long as the case remained open it was required to follow the ICPC, which precluded placement with Father until Texas approved the placement. Father responds that the Department could have simply agreed to dismiss the case, which would have made the ICPC inapplicable, and placed J.H. with Father pursuant to § 41-3-438(3)(d), MCA. Father further argues the Department did not “set out any goals or objectives that could have resulted in J.H.’s placement with Father.” We agree with the Department. ¶20 The very goal of the Department’s ICPC request to Texas child services was to determine whether placing J.H. with Father was viable. When Texas denied the request after conducting a criminal background check and child protective services background check, the Department was left only two avenues to place J.H. with Father: dismissal of the case under § 41-3-438(3)(d), MCA, to remove the applicability of the ICPC, or establish Father met the exception under AAICPC Reg. 3, § 3(a). That exception could not be satisfied because the District Court had evidence before it that Father was potentially unfit, including that Father had dealt crack cocaine and was party to a domestic violence incident involving a knife. The Department investigated the possibility of placing J.H. with Father — by dismissal under § 41-3-438(3)(d), MCA — when it agreed to consider the results of the private home study commissioned by Father. This effort to reunite J.H. with Father also proved futile when the examiner of that study could not recommend placement with Father. Although Father had apparently made progress, the Department was understandably reluctant to agree that dismissal and placement with Father would protect the welfare of J.H., given Father’s recent criminal history and the failure to be approved by his private home study. At that point, the Department had exhausted the three main avenues to place J.H. with Father, and began seeking an alternative, stable, placement that was in J.H.’s best interests. The Department’s efforts to reunify J.H. with Father constituted reasonable efforts under these facts. ¶21 2. Did the District Court err by finding that J.H.’s best interests were served by living with E.J., and not Father? ¶22 Father argues the District Court was required to explicitly find he was an “unfit” parent before it could determine whether J.H.’s best interests were served by living with his Great Aunt E.J., and that there was no substantial evidence supporting the District Court’s finding that it was in J.H.’s best interests to live with E.J., and not with Father. The Department counters that a finding of “unfitness” is not required in a long-term custody proceeding, and that the District Court’s findings were supported by substantial evidence. We agree with the Department. ¶23 Nothing in the statutes or our precedents suggests a district court must explicitly find a parent is unfit before it may determine the best interests of the child in a long-term custody proceeding. It is correct that we have adopted the presumption that the best interests of a child are served in the custody of the natural parents. In re Guardianship of J.R.G., 218 Mont. 336, 342, 708 P.2d 263, 267 (1985). Further, § 41-3-445(8)(e)(v)(B), MCA, requires that a district court find “reunification of the child with the parent or guardian would be contrary to the best interests of the child,” thus codifying and applying this presumption to long-term custody proceedings. But nowhere is it suggested a district court must find more than this before ordering an alternative placement in a long-term custody proceeding. We reject Father’s position that the District Court erred as a matter of law by not explicitly finding that Father was “unfit” before determining it was in J.H.’s best interests to be placed with E.J. ¶24 Substantial evidence is evidence that a reasonable mind might accept as adequate to support a conclusion, even if weak and conflicting. Siebken v. Voderberg, 2015 MT 296, ¶ 12, 381 Mont. 256, 359 P.3d 1073. It consists of more than a mere scintilla of evidence but may be less than a preponderance. Marriage of Schmitz, 255 Mont. 159, 165, 841 P.2d 496, 500 (1992). ¶25 There was significantly more than a “scintilla” of evidence supporting the District Court’s finding that J.H.’s best interests were served by a placement with E.J. and not Father. Feller testified it was in J.H.’s best interests to stay with E.J., “for the reason of being with his sister and for the reason of being in a safe, secure, consistent environment.” The guardian ad litem testified it was critical J.H. reside in the same place as B.S., calling the placement with E.J. an “ideal place” for J.H.’s well-being. E.J. herself testified and committed to the long-term care of J.H. and B.S., stating “they are attached to me, and I’m attached to them.” The Texas social worker reported E.J. was providing consistency, structure, and meeting J.H.’s basic needs. In contrast, the District Court had evidence before it that Father had sold crack-cocaine, been in a domestic violence incident, and had been in a dispute that resulted in two of his children being taken away by Texas child services. A reasonable mind could well weigh these facts and conclude it was in J.H.’s best interests to live with E.J., and not with Father. The District Court’s findings were therefore not clearly erroneous. ¶26 It is worth noting that Father’s parental rights to J.H. were not terminated in this proceeding, that he lives relatively close to where J.H. is residing with E.J. in Texas, and that he may well have an opportunity to further his relationship with J.H. in the future. ¶27 3. Did the District Court err by approving the permanency plan without first holding an age-appropriate consultation with J.H. ? ¶28 Father argues the District Court failed to hold an age-appropriate consultation with J.H. prior to approving the Department’s second permanency plan as required by § 41-3-445(4), MCA. However, Father failed to raise this issue before the District Court. “[I]t is well settled that issues raised for the first time on appeal will not be reviewed.” In re Transfer Terr. From Poplar Elem. Sch. Dist. No. 9 to Froid Elem. Sch. Dist. No. 65, 2015 MT 278, ¶ 18, 381 Mont. 145, 364 P.3d 1222 (citation omitted). This issue is therefore not properly before us for review. Poplar, ¶ 13. ¶29 Affirmed. JUSTICES WHEAT, McKINNON, COTTER and BAKER concur. We initially note that the parties do not dispute that the District Court’s order approving the permanency plan and granting the Department long-term custody of J.H. is an appealable order. The Montana Rules of Appellate Procedure designate as not appealable orders of temporary custody in abuse and neglect proceedings. Mont. R. App. P. 6(5)(c); see also In re S.S., 2012 MT 78, ¶ 10, 364 Mont. 437, 276 P.3d 883. We have defined an appealable order as “one which constitutes a final determination of the rights of the parties; any judgment, order or decree leaving matters undetermined is interlocutory in nature and not a final judgment for purpose of appeal.” In re Matter of D.A., 2003 MT 109, ¶ 13, 315 Mont. 340, 68 P.3d 735; see also M. R. App. P. 4(1)(a). The long-term custody order and permanency plan entered herein give the State the power to infringe upon Father’s fundamental liberty interest in parenting until J.H. reaches 18, and cannot be said to be interlocutory. Father was still on felony probation for these offenses when this case began.
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Shelby Cleveland appeals several rulings by the First Judicial District Court, Lewis and Clark County, excluding trial testimony by Cleveland’s physical therapist and treating physician; directing a defense verdict on Cleveland’s claim that her rotator cuff tear and arthritis were caused by a vehicle collision; and ruling that Cleveland may not recover damages incurred by her business, Shelby House, Inc. We affirm. ¶2 We restate and address the issues on appeal as follows: 1. Whether the District Court abused its discretion by excluding trial testimony of Cleveland’s treating physician, Dr. Phillip Steele. 2. Whether the District Court abused its discretion by excluding trial testimony of Cleveland’s physical therapist, Anne Ripley. 3. Whether the District Court erred in granting a directed verdict on Cleveland’s claim that her rotator cuff tear and shoulder arthritis were caused by the collision. 4. Whether the District Court erred in concluding that Cleveland could not recover damages incurred by Shelby House. PROCEDURAL AND FACTUAL BACKGROUND ¶3 On June 1,2012, Cleveland was involved in a vehicle collision with another driver, Janice Ward. Cleveland was stopped in traffic when Ward struck her vehicle from behind and pushed it into the vehicle in front of Cleveland. The impact totaled Cleveland’s vehicle. Ward admitted that she was negligent, and Cleveland filed suit for damages. Cleveland contended that she suffered physical injuries from the collision and sought, among other items, damages for emotional distress, past medical costs, and “business loss/lost income.” ¶4 On November 5, 2014, Ward filed pre-trial motions in limine. Ward sought to exclude reference to any damages suffered by Shelby House, and to exclude any testimony by Dr. Steele that Cleveland suffered a rotator cuff injury as a result of the collision. On January 21, 2015, the District Court granted Ward’s motions on those two issues. The District Court concluded that, because Shelby House was not a named party, any discussion of damages it incurred was not relevant. The District Court further concluded that Dr. Steele could not testify as to the cause of Cleveland’s rotator cuff tear because he “clearly avoided giving an opinion” on causation in a September 2014 deposition. In reaching this conclusion, the District Court relied on the following testimony from Dr. Steele in that deposition: My belief is that [Cleveland] had pre-existing shoulder pathology that to my knowledge had never bothered her. Its relationship to the automobile accident would be purely speculative on my part. I don’t have a firm way to confirm or deny it. I think certainly the automobile accident could have exacerbated it; the automobile accident could have nothing to do with it. I don’t really know at this point in time. ¶5 On January 6, 2015, the parties took Dr. Steele’s perpetuation deposition. On January 23,2015, Ward filed objections to certain parts of Dr. Steele’s perpetuation deposition testimony based on the District Court’s decision that Dr. Steele could not testify about the cause of Cleveland’s rotator cuff tear. On January 27, 2015, the District Court issued an order sustaining several of Ward’s objections. The court concluded that Dr. Steele’s testimony could not be “offered for the purpose of establishing the cause of the rotator cuff injury, as his testimony did not include medical opinions based on the required probability that the collision ‘more likely than not’ caused the injury,” quoting Beehler v. E. Radiological Assocs., P.C., 2012 MT 260, ¶ 35, 367 Mont. 21, 289 P.3d 131. ¶6 A three-day jury trial commenced on February 2,2015. During the trial, Cleveland called her physical therapist, Anne Ripley, to testify. Outside of the presence of the jury, the District Court asked Ripley several questions to clarify the scope of her testimony. When asked whether she could diagnose the cause of Cleveland’s rotator cuff tear, Ripley responded: “I can’t say that the accident caused the rotator cuff tear. But I can say function was normal before the accident and after the accident she had all of this change.” The District Court therefore prohibited Ripley from offering “testimony as to medical causation” of Cleveland’s rotator cuff tear. Cleveland’s attorney then made an offer of proof by questioning Ripley. ¶7 At the close of evidence, Ward moved for a directed verdict on Cleveland’s claim that her rotator cuff tear and shoulder injuries were caused by the collision. Ward’s attorney argued that Cleveland must have “medical expert testimony to establish the medical causation link” between Cleveland’s shoulder injuries and the collision, and that “[t]he jury can’t speculate on something like that.” The District Court granted Ward’s motion for a directed verdict, preventing Cleveland from arguing that her rotator cuff tear or shoulder arthritis were caused by the collision. ¶8 On February 4, 2015, the jury returned a verdict for Cleveland in the amount of $10,534. On February 17, 2015, the District Court entered judgment for Cleveland in the amount of $3,056.99, after factoring in offsets for previously-made payments. Cleveland appeals, contending that the District Court abused its discretion in limiting the scope of Dr. Steele’s testimony, grantingfive ofWard’s objections to Dr. Steele’s testimony, and limiting the scope of Ripley’s trial testimony. Cleveland further contends that the District Court erred by granting a directed verdict on Cleveland’s shoulder injury claim and ruling that Cleveland may not recover damages incurred by Shelby House. STANDARDS OF REVIEW ¶9 We review for abuse of discretion a district court’s evidentiary rulings and determination whether a witness is qualified as an expert to testify. Harris v. Hanson, 2009 MT 13, ¶ 18, 349 Mont. 29, 201 P.3d 151; Seltzer v. Morton, 2007 MT 62, ¶ 65, 336 Mont. 225, 154 P.3d 561. District courts have broad discretion to control the admission of evidence at trial. Seltzer, ¶ 65. A district court abuses its discretion when it acts arbitrarily without conscientious judgment or exceeds the bounds of reason. Seltzer, ¶ 65. ¶10 If an appellant demonstrates that a district court has abused its discretion in rendering an evidentiary ruling, we determine whether that abuse of discretion constitutes a reversible error. Seltzer, ¶ 65. No reversible error occurs unless a substantial right of the appellant is affected or the evidence in question could have affected the outcome of the trial. Seltzer, ¶ 65. ¶11 Whether a directed verdict should be granted or denied is a question of law, which we review de novo. Johnson v. Costco Wholesale, 2007 MT 43, ¶ 18, 336 Mont. 105, 152 P.3d 727. In reviewing a motion for a directed verdict, we determine “whether the non-moving party could prevail upon any view of the evidence including the legitimate inferences to be drawn therefrom.” Cameron v. Mercer, 1998 MT 134, ¶ 8, 289 Mont. 172, 960 P.2d 302. Courts must “exercise the greatest self-restraint in interfering with the constitutionally-mandated process of jury decision. Thus, unless there is a complete absence of any credible evidence in support of the verdict, a motion for a directed verdict is not properly granted.” Cameron, ¶ 8 (internal citations omitted). DISCUSSION ¶12 1. Whether the District Court abused its discretion by excluding trial testimony of Cleveland’s treating physician, Dr. Phillip Steele. ¶13 Cleveland appeals the District Court’s January 21, 2015 order that Dr. Steele could not testify on the cause of Cleveland’s rotator cuff injury and its January 27, 2015 order excluding several specific portions of Dr. Steele’s perpetuation deposition testimony. M. R. Evid. 702 permits “a witness qualified as an expert by knowledge, skill, experience, training, or education” to testify “in the form of an opinion or otherwise” if “scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue.” An expert’s testimony is reliable if: (1) the expert field is reliable, (2) the expert is qualified, and (3) the qualified expert reliably applied the reliable field to the facts. Harris, ¶ 36 (citing M. R. Evid. 702). The first two factors are determined by the district court. By contrast, “[t]he question whether a qualified expert reliably applied the principles of th[e] reliable field to the facts of the case is for the finder of fact.” Harris, ¶ 36. However, when expert medical testimony is required to establish a necessary element of a claim, “the expert must testify with a ‘reasonable medical certainty.’ ” McClue v. Safeco Ins. Co., 2015 MT 222, ¶ 29, 380 Mont. 204, 354 P.3d 604. Under this standard, “[a] medical expert’s opinion is admissible if it is based on an opinion that it is ‘more likely than not’ that the alleged wrongdoing caused the plaintiffs injury.” McClue, ¶ 29 (quoting Hinkle ex rel. Hinkle v. Shepherd Sch. Dist. # 37, 2004 MT 175, ¶ 36, 322 Mont. 80, 93 P.3d 1239). ¶14 Neither party disputes that Dr. Steele’s field is reliable or that he is qualified as an expert. The parties dispute the scope of Dr. Steele’s testimony and the District Court’s exclusion of five portions of it. In its January 21, 2015 order, the District Court determined that Dr. Steele “cannot be offered for the purpose of establishing causation” because he would not say that the collision “more likely than not” caused Cleveland’s rotator cuff tear. The District Court based its decision on Dr. Steele’s September 2014 deposition testimony that it would be “purely speculative” for him to opine on the relationship between Cleveland’s rotator cuff tear and the collision. The District Court did not abuse its discretion by prohibiting Dr. Steele from testifying that the collision caused Cleveland’s rotator cuff tear because Dr. Steele clearly indicated that he could give no such opinion. ¶15 The District Court relied on its decision that Dr. Steele could not testify on causation to exclude several specific portions of Dr. Steele’s perpetuation deposition testimony. Cleveland appeals five of these exclusions, summarized below. Cleveland contends that the excluded evidence was offered to explain factual issues “related to observations and conclusions Dr. Steele made in the course of his treatment” and should have gone to the jury. ¶16 Though district courts have broad discretion to control the admission of evidence at trial, we have long recognized that it is “the sole province of the jury to determine questions of fact.” Murray v. Heinze, 17 Mont. 353, 364, 42 P. 1057, 1061 (1895). As such, courts should liberally construe the rules of evidence to admit all relevant expert testimony, even if that evidence may be characterized as “shaky.” McClue, ¶ 23. “The expert’s testimony then is open for attack through ‘the traditional and appropriate’ methods: ‘vigorous cross examination, presentation of contrary evidence, and careful instruction on the burden of proof.’ ” McClue, ¶ 23 (quoting State v. Clifford, 2005 MT 219, ¶ 28, 328 Mont. 300, 121 P.3d 489). ¶17 In the first excluded portion of his testimony, Dr. Steele responded to a request for clarification of his treatment note that a vehicle collision “can be” a contributor to Cleveland’s symptoms. Dr. Steele did not opine whether the collision caused Cleveland’s rotator cuff tear. Rather, he testified about the medical difficulty of determining the “pain generator” of shoulder and neck pain. This testimony was factual; thus, it was admissible. Although this testimony should have been admitted, Dr. Steele made a similar statement using nearly the same language earlier in his deposition. He testified: [0]ne of the big conundrums of musculoskeletal care is all the nerve roots from the neck go there through the shoulder ... so sometimes shoulder pain is neck pain and sometimes neck pain is shoulder pain.... It’s an extremely challenging area to determine what’s coming from where. The District Court did not exclude that testimony and, thus, there is not a reasonable possibility that the excluded evidence contributed to the jury’s verdict. The District Court’s exclusion of Dr. Steele’s testimony was not reversible error. ¶18 The second and third excluded portions of Dr. Steele’s testimony directly pertain to the cause of Cleveland’s rotator cuff tear. In the second excluded portion, Dr. Steele responded to a question regarding whether Cleveland had a rotator cuff tear in 2001 by refusing to speculate as to when Cleveland’s rotator cuff tear occurred. In the third excluded portion, during a discussion about whether Cleveland had a rotator cuff tear prior to the collision, Dr. Steele testified that a person typically would show symptoms of a tear. In the fourth excluded portion, Dr. Steele discussed the various treatment options for Cleveland’s rotator cuff tear. ¶19 There is no dispute that Cleveland had a rotator cuff tear. However, as discussed below in our resolution of Issue 3, Cleveland never produced expert testimony that her rotator cuff tear was “more likely than not” caused by the collision, and the jury ultimately did not consider that claim because of the District Court’s directed verdict. As further discussed in our resolution of Issue 3, Cleveland never argued that her rotator cuff tear, even if pre-existing, was aggravated or rendered symptomatic by the collision. In the absence of either medical evidence supporting Cleveland’s causation theory or an argument that the collision aggravated a pre-existing condition, the District Court did not err by excluding testimony about the cause of Cleveland’s rotator cuff tear or treatment for that injury. ¶20 In the fifth excluded portion of his testimony, Dr. Steele testified that it was not possible to apportion Cleveland’s symptoms between the vehicle collision and any pre-existing conditions. Cleveland contends on appeal that this testimony was admissible to rebut Ward’s contention that Cleveland’s symptoms were “100% attributable to a pre-existing rotator cuff tear.” However, this was not Ward’s contention. The only testimony in this regard came when Cleveland’s attorney asked Ward’s medical expert, Dr. Heid, whether Cleveland’s limitations were “completely 100 percent unrelated to the motor vehicle accident.” Dr. Heid responded that the question was misleading because it was unclear how much of Cleveland’s limitations were due to her neck injury versus her shoulder injury. Since Ward never attempted to apportion potential causes of Cleveland’s injuries to the jury, Dr. Steele’s testimony that it was not possible to apportion Cleveland’s symptoms was not in rebuttal of anything. The District Court did not err in excluding it. ¶21 2. Whether the District Court abused its discretion by excluding trial testimony of Cleveland’s physical therapist, Anne Ripley. ¶22 Cleveland next contends that the District Court abused its discretion by barring Ripley from offering medical causation testimony. At trial and outside of the presence of the jury, the District Court questioned Ripley about the scope of her testimony. When asked by the court whether she could determine the cause of a rotator cuff tear, Ripley responded: “I can’t say that the accident caused the rotator cuff tear. But I can say function was normal before the accident and after the accident she had all of this change.” Based in part on this statement, the District Court decided that it was “not going to allow [Ripley] to offer testimony as to medical causation.” The District Court further explained that Cleveland had not produced required medical expert testimony that, “to a reasonable degree of medical certainty!,] ... this accident caused her rotator cuff tear.” On appeal, Cleveland contends that the District Court reached this decision arbitrarily by not first allowing Cleveland an opportunity to make an offer of proof. Cleveland further contends that the District Court should have considered Ripley’s qualifications to determine whether she was competent to testify under M. R. Evid. 702. ¶23 Regardless of whether Ripley was qualified as a physical therapist to testify on medical causation, she clearly indicated that she could not opine that the collision caused Cleveland’s rotator cuff tear. The District Court did not abuse its discretion in determining that Ripley could not testify that the collision “more likely than not” caused Cleveland’s rotator cuff tear. ¶24 Moreover, it bears noting that the District Court did not exclude Ripley’s testimony regarding Cleveland’s general pain and limitations in her shoulder. Outside of the presence of the jury, Ripley told the court that she could testify “about the change in function that I saw after the motor vehicle accident in [Cleveland], I can talk about her pain ....” The District Court never said that Ripley could not provide this information to the jury. In fact, before the District Court made its ruling, and while Ripley was still in front of the jury, Ripley extensively testified about Cleveland’s shoulder injuries, functional limitations, and pain. The District Court did not exclude any of this testimony. The District Court’s ruling that Ripley could not testify that the collision caused Cleveland’s rotator cuff tear did not prevent Cleveland’s attorney from asking Ripley further questions about her treatment of Cleveland’s injuries. Nor did the Court’s ruling prevent Cleveland’s attorney from asking whether Ripley believed the collision aggravated a pre-existing injury or prevent Ripley from testifying about Cleveland’s pain and limitations before and after the accident. ¶25 3. Whether the District Court erred in granting a directed verdict on Cleveland’s claim that her rotator cuff tear and shoulder arthritis were caused by the collision. ¶26 “A directed verdict ... is not proper if reasonable persons could differ regarding the conclusions which could be drawn from the evidence, and a directed verdict is proper only in the complete absence of any evidence to warrant submission to the jury.” King v. Zimmerman, 266 Mont. 54, 60, 878 P.2d 895, 899 (1994). The District Court granted Ward’s motion for a directed verdict “as to the argument for the rotator cuff or arthritic condition” because it concluded: “There is no medical causation, expert testimony, that says that [Cleveland’s] rotator cuff arthritic condition in her shoulder is related to the accident.... [N]obody has — and we have to have an expert — has said it was caused by the motor vehicle accident.” On appeal, Cleveland contends that the District Court erred in reaching this decision because the jury could infer from “substantial credible evidence” that the collision was the “apparent cause” of Cleveland’s “on-going shoulder pain and limitations.” ¶27 Regarding its directed verdict, the District Court instructed the jury: I have further concluded at the conclusion of the evidence that there is insufficient evidence to establish that the motor vehicle accident caused the plaintiffs rotator cuff tear and arthritis in the right shoulder. So you are not to be awarding damages for the rotator cuff tear or the arthritis in her right shoulder. Nowhere in its ruling on Ward’s motion for a directed verdict or explanation of that ruling to the jury did the District Court prevent Cleveland from arguing that the collision aggravated a pre-existing condition or caused her pain and limitations. ¶28 On appeal, Cleveland conflates the District Court’s directed verdict on the issue of whether the accident caused her objectively-diagnosed rotator cuff tear and shoulder arthritis — an argument that did not have the required medical testimony to support it — with the issue of whether the accident aggravated those injuries, irrespective of their origin — an argument that was not made to the District Court. As a general rule, “this Court will not address either an issue raised for the first time on appeal or a party’s change in legal theory.” Unified Indus., Inc. v. Easley, 1998 MT 145, ¶ 15, 289 Mont. 255, 961 P.2d 100 (citing Day v. Payne, 280 Mont. 273, 276, 929 P.2d 864, 866 (1996)). This is because “it is fundamentally unfair to fault the trial court for failing to rule correctly on an issue it was never given the opportunity to consider.” Easley, ¶ 15 (quoting Day, 280 Mont. at 276-77, 929 P.2d at 866). We will not fault the District Court for failing to rule on Cleveland’s claim that the collision aggravated a pre-existing injury or caused her pain because the District Court never was given the opportunity to consider that issue. ¶29 4. Whether the District Court erred in concluding that Cleveland could not recover damages incurred by Shelby House. ¶30 In its January 21, 2015 order on Ward’s motions in limine, the District Court concluded that Cleveland could not seek damages for “business loss/lost income” on behalf of Shelby House because Shelby House was not a named party in the lawsuit. Cleveland claims that the District Court erred in excluding evidence of an alleged increase in payroll expenses incurred by Shelby House, and that she has standing to assert a claim for these losses because they filter through to her as the sole shareholder. ¶31 “A corporation has a separate and distinct entity from its stockholders.” First Sec. Bank v. Gary, 245 Mont. 394, 402, 798 P.2d 523, 528 (1990). As the District Court recognized, “[generally, a shareholder may not bring a claim that belongs to their corporation.” Weaver v. Advanced Refrigeration, 2011 MT 174, ¶ 14, 361 Mont. 233, 257 P.3d 378 (citing Gullett v. Van Dyke Constr. Co., 2005 MT 105, ¶ 14, 327 Mont. 30, 111 P.3d 220). This includes claims of profits lost to the corporation. Gullet, ¶¶ 14, 17. Cleveland is bound by her pleadings, see Weaver, ¶ 15, and she does not allege personal loss of income due to her injuries. Any claim against Ward for “business loss/lost income” belongs to Shelby House, not to Cleveland personally. See Weaver, ¶ 15. The District Court did not err in concluding that Cleveland could not recover damages incurred by Shelby House. CONCLUSION ¶32 The District Court did not abuse its discretion in determining that Dr. Steele may not testify that the vehicle collision caused Cleveland’s torn rotator cuff and shoulder injuries. Any abuse of discretion in the court’s exclusion of the five disputed portions of Dr. Steele’s testimony was not reversible error. The District Court did not abuse its discretion in concluding that Ripley may not testify that the collision caused Cleveland’s rotator cuff tear or shoulder arthritis. Because Cleveland produced no expert testimony that her rotator cuff tear or shoulder arthritis more likely than not were caused by the collision, the District Court did not err in granting a directed verdict on that claim. Finally, the District Court did not err in concluding that Cleveland may not recover damages incurred by Shelby House. We affirm. CHIEF JUSTICE McGRATH, JUSTICES BAKER, McKINNON, WHEAT and RICE concur. The District Court also granted and denied Ward’s motions on other issues not appealed.
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JUSTICE BAKER delivered the Opinion of the Court. ¶1 Appellants appeal the order of the Water Court denying their motion to alter or amend its final order on certification that tabulated the water rights necessary to address Charles Fellows’ underlying complaint in the Ninth Judicial District Court, Teton County. This is the second time this matter has been before this Court on appeal. Fellows v. Office of Water Comm’r, 2012 MT 169, 365 Mont. 540, 285 P.3d 448 (hereafter Fellows I). The Perry Defendants raise several issues on appeal that we restate as follows: 1. Whether the water right claims in controversy were properly determined following this Court’s remand in Fellows I. 2. Whether the District Court erred in granting Fellows’ motion for substitution. ¶2 We affirm. PROCEDURAL AND FACTUAL BACKGROUND ¶3 Because the background facts are delineated in Fellows I, we restate the facts only briefly. ¶4 Montana’s Constitution requires the Legislature to “provide for the administration, control, and regulation of water rights” and to “establish a system of centralized records” for those rights. Mont. Const, art. IX, § 3(4). In implementing this constitutional mandate, the Legislature created the Water Court, which has jurisdiction over “all matters relating to the determination of existing water rights within the boundaries of the state of Montana.” Section 3-7-224(2), MCA. The law provides district courts with jurisdiction to enforce the provisions of water rights decrees and to supervise the distribution of adjudicated water. Tit. 3, Ch. 7, Pt. 2, MCA; Tit. 85, Ch. 2, MCA. The Water Court is in the process of adjudicating the water rights of all appropriators in Basin 410, which includes the Teton River and Spring Creek — the sources of water at issue here. Although the Water Court has issued a temporary preliminary decree for Basin 410, it has not yet issued a final decree. Therefore, the adjudication process in Basin 410 is still ongoing. ¶5 Fellows owns several water rights in Spring Creek near Choteau, Montana. His rights were decreed in Sands Cattle & Land Co. v. Jackson, Case 727 (Mont. 10th Judicial Dist. Ct., May 31, 1892). Fellows claims that Spring Creek is recharged by water seeping through a subsurface aquifer from a stretch of the Teton River known as the Springhill Reach. In other words, Fellows asserts that Spring Creek and the Teton River are hydrologically connected. Fellows therefore contends that maintaining the flow of Spring Creek is dependent upon maintaining water in the Springhill Reach. ¶6 The Perry Defendants own various water rights in the upper Teton River northwest of Choteau. Their rights were decreed in Perry v. Beattie, Case 371 (Mont. 11th Judicial Dist. Ct., March 28, 1908). The Ninth Judicial District Court, Teton County, now supervises the distribution of water pursuant to both Perry and Sands. The water rights decreed in Perry are administered by a water commissioner pursuant to § 85-5-101, MCA. In administering water rights under Perry, the Water Commissioner has diverted water out of the Teton River into the Bateman Ditch above the Springhill Reach as a water management tool. Fellows I, ¶ 4; Eldorado Co-Op Canal Co. v. Lower Teton Joint Objectors, 2014 MT 272, ¶ 32, 376 Mont. 420, 337 P.3d 74 (hereafter Eldorado). Fellows alleges that water diversion through the Bateman Ditch diminishes the flow of water through the Springhill Reach and adversely affects the water available to satisfy his Spring Creek rights. ¶7 In February 2011, Fellows filed a complaint challenging the Water Commissioner’s administration of water under the Perry decree. Specifically, he challenged the Water Commissioner’s authority to divert water out of the Teton River by means of the Bateman Ditch. The District Court ultimately dismissed Fellows’ complaint under M. R. Civ. P. 12(b)(6) for failure to state a clai m upon which relief could be granted, and Fellows appealed. ¶8 In Fellows I, we reversed the District Court’s dismissal and remanded for further proceedings. Fellows I, ¶ 22. We agreed with the District Court that Fellows could not seek relief from the action of the Perry Water Commissioner under § 85-5-301, MCA, because he did “not derive his Spring Creek water right from the Perry decree ....” Fellows I, ¶ 16. We concluded, however, that Fellows could seek declaratory relief and that his allegations were sufficient to state a claim under M. R. Civ. P. 12(b)(6). Fellows I, ¶ 19. We concluded further that if Fellows could “prove hydrological connectivity between Spring Creek and the Teton River, then the next step should be certification to the chief water judge under § 85-2-406(2)(b), MCA.” Fellows I, ¶ 21. ¶9 On remand, Fellows filed a motion for substitution of district court judge, which Judge Olson granted. After Judge Oldenburg assumed jurisdiction, Monte Giese, William Reichelt, and Steve Kelly (Intervenors) intervened. Fellows then moved for summary judgment on the issue of hydrological connectivity. Following consideration of the parties’ expert depositions, the District Court granted Fellows’ motion, concluding that Spring Creek and the Teton River are hydrologically connected. The court found it unnecessary “at this stage of the proceeding” to address the scope, extent, or timing of the connectivity. ¶10 Fellows then requested the court to certify a question to the Water Court. The Perry Defendants objected to the request; the District Court held, however, that the “applicable and appropriate scope of the determination of the rights involved in the controversy is best left to the processes of the Water Court.” Accordingly, the District Court certified the following issue for determination by the Water Court: Upon remand from the Montana Supreme Court in Cause No. 2012 MT 169, pursuant to this Court’s determination of the hydrological connectivity between the Teton River and Spring Creek, and pursuant to MCA Section 85-2-406(2)(b), the Ninth Judicial District Court certifies this matter to the Montana Water Court for determination of the existing rights involved in this controversy, pursuant to Chapter 2 of Title 85, MCA. Upon its determination, the Water Court shall issue to the District Court a list or tabulation of rights, priorities, and approved points of diversion in a form determined appropriate by the Water Judge. The Water Court issued its final order on certification on March 13, 2015. ¶11 In its final order, the Water Court concluded that the purpose of certification under § 85-2-406(2)(b), MCA, is “to provide sufficient information to enable the District Court to resolve the immediate controversy.” Because it concluded that the underlying controversy stemmed from the Water Commissioner’s use of the Bateman Ditch as a water management tool, the Water Court determined that the scope of the controversy should be defined by Fellows’ water right claims and by the water right claims that historically utilized the Bateman Ditch. Consequently, the Water Court concluded that three Patrick Saylor Teton River water right claims, a Choteau Cattle Company Teton River water right claim, and Fellows’ Spring Creek water right claims “constitute the claims properly before the Water Court in this certification.” By the time of its certification order, all of the Saylor, Choteau Cattle Company, and Fellows water right claims had been adjudicated in the temporary preliminary decree. The court therefore concluded that further proceedings were not required in answering the certification issue. The Water Court tabulated the claims at issue and ordered that the matter be closed and returned to the District Court. ¶12 The Perry Defendants then filed a M. R. Civ. P. 59(e) motion to alter or amend the Water Court’s judgment. The motion requested that the Water Court withdraw its final order and return the matter to the District Court “to properly identify the water rights involved in the controversy, as defined by the allegations of Fellows’ First Amended Complaint.” The Water Court denied the motion. The Perry Defendants appeal. STANDARDS OF REVIEW ¶13 We review a trial court’s denial of a M. R. Civ. P. 59(e) motion for abuse of discretion. In re Marriage of Anderson, 2013 MT 238, ¶ 13, 371 Mont. 321, 307 P.3d 313. A trial court abuses its discretion when it acts arbitrarily, without employment of conscientious judgment, or exceeds the bounds of reason resulting in substantial injustice. RN & DB, LLC v. Stewart, 2015 MT 327, ¶ 14, 381 Mont. 429, 362 P.3d 61. We review a trial court’s interpretation of a statute de novo. City of Livingston v. Mont. Pub. Emps. Ass’n ex rel. Tubaugh, 2014 MT 314, ¶ 11, 377 Mont. 184, 339 P.3d 41. Whether a court has jurisdiction over the parties or the subject matter is a legal conclusion that we review de novo. Pinnow v. Mont. State Fund, 2007 MT 332, ¶ 13, 340 Mont. 217, 172 P.3d 1273. DISCUSSION ¶14 1. Whether the water right claims in controversy were properly determined following this Court’s remand in Fellows I. ¶15 In its order denying the Perry Defendants’ motion to alter or amend its judgment, the Water Court first concluded that it had jurisdiction to determine the scope of the certification question because the Water Court’s role under § 85-2-406(2)(b), MCA, “is to provide sufficient information to the District Court to facilitate resolution of the underlying water distribution controversy.” The court next concluded that “Fellows has decreed rights from Spring Creek[;] he is not claiming the Teton River as the source for these water rights.” The court reiterated that “Fellows is seeking the ability to participate in any District Court proceedings on use of the Bateman Ditch as a water conservation measure.” The Water Court therefore concluded that it correctly identified the scope of the controversy and appropriately tabulated “the rights that historically used the Bateman Ditch and the Spring Creek claims Fellows is seeking to protect.” ¶16 On appeal, the Perry Defendants raise several points of error in asserting that the Water Court abused its discretion in denying their M. R. Civ. P. 59(e) motion, including: that the Water Court did not follow the law of the case; that certification under § 85-2-406(2)(b), MCA, was inappropriate; and that the Water Court failed to define the scope of the controversy, improperly determined the purpose of the tabulation, and inadequately tabulated the rights in controversy. We address each argument in turn. ¶17 First, the Perry Defendants contend that the law of the case established in Fellows I was not followed because Fellows’ rights were not properly certified for determination with a modified Teton River source. They assert that in Fellows I, we implicitly contemplated that the purpose of certification “was for Fellows’ rights to be determined as Teton rights vis-á-vis the Perry Decree users.” They therefore contend that the Water Court abused its discretion in determining that Spring Creek is the source of Fellows’ water right claims in controversy. ¶18 We are not persuaded by the Perry Defendants’ contention that we implicitly concluded in Fellows I that Fellows’ rights must be determined with a modified Teton River source. The Perry Defendants rely on the well-established rule that when we state in an opinion “a principle or rule of law necessary to the decision, such pronouncement becomes the law of the case, and must be adhered to throughout its subsequent progress ....” Fiscus v. Beartooth Elec. Coop., 180 Mont. 434, 437, 591 P.2d 196, 197 (1979) (citation and internal quotations omitted). In Fellows I, we stated multiple times explicitly that Spring Creek is the source of Fellows’ water right claims involved in the controversy. E.g., Fellows I, ¶¶ 2, 16, 21. We did not hold that the Water Court on certification must determine Fellows’ rights as Teton River rights. Accordingly, we conclude that the Water Court adhered to the law of the case and therefore did not abuse its discretion in concluding that the source of Fellows’ rights in controversy is Spring Creek, not the Teton River. ¶19 The Perry Defendants next argue that certification under § 85-2-406(2)(b), MCA, was improper based on a “holistic reading” of the statute. They contend that certification is appropriate under § 85-2-406(2)(b), MCA, only if the rights involved in the controversy have not yet been determined. Because the rights in controversy here are “determined claims,” the Perry Defendants assert that the Water Court could perform only an enforcement tabulation pursuant to § 85-2- 406(4), MCA. They next argue that the Water Court lacked jurisdiction under § 85-2-406(2)(b), MCA, to determine which parties and water rights were involved in the underlying water distribution controversy. The statute, they contend, requires that the District Court make those determinations prior to certification. Without a determination by the District Court as to which parties and which water rights are involved in the controversy, the Perry Defendants claim that certification under § 85-2-406(2)(b), MCA, was inappropriate. ¶20 In Fellows I, we pronounced that if Fellows could establish “hydrological connectivity between Spring Creek and the Teton River, then the next step should be certification to the chief water judge under § 85-2-406(2)(b), MCA.” Fellows I, ¶ 21. Upon remand, the District Court established hydrological connectivity on summary judgment and then followed this Court’s direction by certifying a question to the Water Court pursuant to § 85-2-406(2)(b), MCA. ¶21 The role of the judge in construing a statute “is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted.” Section 1-2-101, MCA. It is a well-established rule that “[w]hen construing a statute, it must be read as a whole, and its terms should not be isolated from the context in which they were used by the Legislature.” State v. Price, 2002 MT 229, ¶ 47, 311 Mont. 439, 57 P.3d 42 (citing State v. Nye, 283 Mont. 505, 510, 943 P.2d 96, 99 (1997)). It also is well-established that “statutes should be construed according to the plain meaning of the language used therein.” Price, ¶ 47 (citing Nye, 283 Mont. at 510, 943 P.2d at 99). Moreover, we have concluded, “Section 85-2-406(2)(b), MCA, should not be narrowly interpreted so as to frustrate solutions to water distribution controversies, but rather should be applied so as to allow for the expeditious resolution of these controversies.” Giese, ¶ 16. ¶22 Section 85-2-406(2)(b), MCA, initially requires that a “water distribution controversy” exist before a party may petition a district court for certification. As the Perry Defendants acknowledge, this matter “is undeniably a water distribution controversy”; therefore, the first requirement for certification under § 85-2-406(2)(b), MCA, is met. Giese, ¶ 11. The statute further provides that, for certification to be proper, the water distribution controversy must “arise[ ] upon a source of water in which not all existing rights have been conclusively determined according to part 2 of this chapter ....” Section 85-2-406(2)(b), MCA. We determined in Giese that certification under § 85-2-406(2)(b), MCA, was appropriate based in part on the fact “that not all existing rights on the Teton River have been conclusively determined.” Giese, ¶ 15. We conclude that the plain meaning of the language used in § 85-2-406(2)(b), MCA, is that if all existing rights on the source of water in controversy have not been conclusively determined by final adjudication under the 1973 Water Use Act, then a party involved in a water distribution controversy may petition the court for certification. ¶23 Although the rights at issue here were decreed in Perry and Sands, those rights — along with other claimed existing water rights in Basin 410 — are subject to a temporary preliminary decree. Teton Co-Op Canal Co. v. Teton Coop Reservoir Co., 2015 MT 344, 382 Mont. 1, 365 P.3d 442; Teton Coop. Reservoir Co. v. Farmers Coop. Canal Co. 2015 MT 208, 380 Mont. 146, 354 P.3d 579; Eldorado; Skelton Ranch, Inc. v. Pondera Cnty. Canal & Reservoir Co., 2014 MT 167, 375 Mont. 327, 328 P.3d 644; Heavirland v. State, 2013 MT 313, 372 Mont. 300, 311 P.3d 813. Water right claims in Basin 410 are still working their way through the adjudication process. See § 85-2-231(1), MCA (providing that the Water Court “may issue a temporary preliminary decree prior to the issuance of a preliminary decree if the temporary preliminary decree is necessary for the orderly adjudication or administration of water rights”). As such, all the existing rights in the sources of water at issue here have not been conclusively determined pursuant to Title 85, chapter 2, part 2, MCA. See § 85-2-227(1), MCA (providing in pertinent part, “For purposes of administering water rights, the provisions of a temporary preliminary decree or a preliminary decree, as modified after objection and hearings, supersede a claim of existing right until a final decree is issued.” (emphasis added)). Fellows is not seeking enforcement of a temporary preliminary decree under § 85-2-406(4), MCA, but determination of his rights and relative priorities in order to challenge delivery of water through the Bateman Ditch. Accordingly, Fellows’ petition for certification was proper pursuant to § 85-2-406(2)(b), MCA. ¶24 The Perry Defendants next assert that the plain language of § 85-2-406(2)(b), MCA, permits only district courts to identify which parties and water rights are involved in the underlying water distribution controversy. Section 85-2-406(2)(b), MCA, provides, in relevant part, “If a certification request is made, the district court shall certify to the chief water judge the determination of the existing rights that are involved in the controversy according to part 2 of this chapter.” We conclude that the plain language of the statute explicitly confers on the Water Court, when a district court requests, the authority to “determin[e] [ ] the existing rights that are involved in the controversy according to part 2 of this chapter.” Section 85-2-406(2)(b), MCA. ¶25 The Perry Defendants’ overly narrow interpretation of the statute would “frustrate solutions to water distribution controversies.” Giese, ¶ 16. Our construction of the terms used in the statute is consistent with the context in which the terms were used by the Legislature. Under Montana law, “the water court is vested with exclusive jurisdiction relative to all matters relating to the determination of existing water rights within the boundaries of the State of Montana.” Baker Ditch Co. v. District Ct., 251 Mont. 251, 255, 824 P.2d 260, 260 (1992) (emphasis added) (citing § 3-7-501, MCA; Mildenberger v. Galbraith, 249 Mont. 161, 815 P.2d 130 (1991)). Given the Water Court’s comprehensive oversight of the adjudication process, its jurisdiction necessarily includes the authority to identify those parties and rights involved in a water distribution controversy based on the adjudication process, the claims made in the affected area, and the evidence before the Water Court. See Giese, ¶ 18 (instructing a district court “to certify all appropriate issues to the Chief Water Judge as provided in § 85-2-406(2)(b), MCA...” (emphasis added)). Accordingly, we conclude that under the plain language and the context of the terms used in § 85-2-406(2)(b), MCA, the Water Court has authority to determine which parties and rights are involved in a water distribution controversy certified by a district court. Such an application of the statute will “allow for the expeditious resolution of these controversies.” Giese, ¶ 16. ¶26 The Perry Defendants’ final contention is that the Water Court failed to define adequately the scope of the controversy based on the parties’ pleadings. They assert that the Water Court reframed the scope of the controversy too narrowly because “in order to fully determine the water distribution controversy pled by Fellows, it is necessary to determine the validity of the water right claims of [all of the named Defendants] allegedly causing damage to Fellows.” The Perry Defendants allege that the underlying controversy is broader than the Water Commissioner’s use of the Bateman Ditch because Fellows alleged in his complaint that the named Defendants were appropriating his “recharge water,” giving rise to a claim for damages. Because the Water Court did not include all of the named Defendants in its order, they assert that the Water Court provided the District Court with an incomplete tabulation of the rights in controversy. Furthermore, they contend that the Water Court made an incorrect conclusion that the purpose of the certification was not enforcement of rights. ¶27 In its final order, the Water Court concluded that “[t]he scope of certification refers to the water right claims that require a review by the Water Court in order to provide the necessary information to the District Court.” The Water Court further determined that “[t]he point of certification is to provide sufficient information to the District Court to facilitate resolution of the underlying water distribution controversy,” and that “[t]he scope of the certification is typically defined by that underlying controversy.” In determining the scope and the purpose of the certification, the court concluded: Fellows requested certification for a limited purpose. He seeks the right to object if other water users ask to divert water into the Bateman Ditch as a water saving measure. He is not questioning the elements of any specific water right. He has not asserted the right to place a call on any specific water right. The water right claims involved need not include all Basin 410 water rights that may benefit from use of the Bateman Ditch as a water saving measure or all water rights that may, through their use, have an adverse impact on the Springhill Reach or Spring Creek. Fellows is specifically asking for the right to participate in any future proceeding on use of the Bateman Ditch as a water saving measure, he is not seeking enforcement of all water rights and permits upgradient from his point of diversion. The Water Court noted that we had affirmed its prior tabulation of water right claims associated with the Bateman Ditch in Eldorado, and concluded that the “same water right claims identified in the [Eldorado] tabulation are at issue in this certification case.” As such, the Water Court concluded that Saylor’s, Choteau Cattle Company’s, and Fellows’ water right claims are the existing rights that are involved in the underlying controversy before the District Court. ¶28 We agree with the Water Court that the purpose of certification under § 85-2-406(2)(b), MCA, is to provide sufficient information to the District Court to facilitate resolution of the underlying water distribution controversy. See Giese, ¶ 16 (concluding that § 85-2-406(2)(b), MCA, “should be applied so as to allow for the expeditious resolution of [water distribution] controversies”). We therefore agree that the underlying water distribution controversy defines the scope of the certification. The Water Court’s order, like any court’s judgment, “must be within the issues presented to the court.” Nat’l Sur. Corp. v. Kruse, 121 Mont. 202, 205-06, 192 P.2d 317, 319 (1948). Accordingly, the Water Court properly looked to Fellows’ First Amended Complaint in determining the scope of the controversy and purpose of the certification. ¶29 A review of that complaint establishes that Fellows alleged that maintaining the flow of Spring Creek is dependent upon “Recharge Water” seeping through a subsurface aquifer located at the Springhill Reach. Fellows further alleged that the Water Commissioner “altered the delivery of water in [Perry] to allow for diversion and use of Recharge Water by unknown water users (‘Defendants’)” by means of the Bateman Ditch. Fellows claimed that the Water Commissioner’s practice of diverting water through the Bateman Ditch impaired the use of his Spring Creek rights. Fellows therefore sought to enjoin the Water Commissioner from using the Bateman Ditch as a water management tool and pursued relief from the practice under both private and public nuisance as well as negligence theories. ¶30 The Perry Defendants’ assertions that the Water Court erred in defining the scope of the controversy and determining the purpose of the certification are unpersuasive. Based on our review of the issues presented in Fellows’ Amended Complaint, we conclude that the Water Court properly opined that Fellows requested certification for the limited purpose of obtaining the right to object when water was diverted through the Bateman Ditch. His complaint specifically sought an injunction “barring the distribution, diversion or use of Recharge Water” by means of the Bateman Ditch. Furthermore, the Water Court correctly determined that the scope of the certification was limited to use of the Bateman Ditch. Fellows’ complaint alleges that the groundwater aquifer located at the Springhill Reach is the primary source of water in Spring Creek; therefore, he asserts, the diversion of water through the Bateman Ditch impacts his Spring Creek rights. The Water Court appropriately confined its order to the controversy before the District Court — use of the Bateman Ditch to deliver water. ¶31 Moreover, the Water Court did not err in determining that the claims properly before the court on certification were Saylor’s and Choteau Cattle Company’s Teton River water right claims and Fellows’ Spring Creek water right claims. Upon certification, the Water Court is tasked with determining “the existing rights that are involved in the controversy....” Section 85-2-406(2)(b), MCA (emphasis added). As the Water Court noted, we concluded in Eldorado that it properly tabulated the “water rights that can be diverted through the Bateman Ditch.” Eldorado, ¶ 36. Because the scope of the instant controversy is limited to the use of the Bateman Ditch, it was unnecessary for the Water Court to tabulate rights beyond those that historically have used the Bateman Ditch and Fellows’ Spring Creek rights. The Water Court properly determined the existing rights involved in the controversy. ¶32 The only purpose of the certification order is the tabulation and relative priority of Fellows’ Spring Creek rights and the rights of those using the Bateman Ditch for delivery of their Teton River water. It will be in the District Court — when and if Fellows challenges use of the Bateman Ditch as a management tool — that he will need to prove that diverting water through the ditch actually and as a matter of hydrological fact impairs his water right. It is then the District Court’s function to “supervise the distribution of water among all appropriators.” Section 85-2-406(1), MCA. ¶33 Although the Perry Defendants make additional arguments, we conclude that the contentions discussed above are dispositive. Based on the foregoing analysis, we conclude the following: that the Water Court correctly determined that Spring Creek is the source of Fellows’ rights involved in the controversy; that certification pursuant to § 85-2-406(2)(b), MCA, was proper; and that the Water Court did not err in determining the scope of the controversy, defining the purpose of the certification, or tabulating the applicable rights involved in the controversy. Accordingly, we hold that the Water Court did not abuse its discretion in denying the Perry Defendants’ motion to amend and that the water right claims in controversy were properly determined following this Court’s remand in Fellows I. ¶34 2. Whether the District Court erred in granting Fellows’motion for substitution. ¶35 Section 3-1-804, MCA, provides for the substitution of district court judges; it provides, however, that there is no right of substitution of “a judge supervising the distribution of water under 85-2-406, including supervising water commissioners under Title 85, chapter 5, part 1.” Section 3-1-804, MCA. The Perry Defendants assert that the substitution of Judge Olson was improper because this case is “undeniably a water distribution controversy, ....” The Perry Defendants further contend that the issue is properly before this Court on appeal. They rely on M. R. App. P. 6(1), which provides that this Court may review “all previous orders and rulings excepted or objected to which led to and resulted in the judgment.” Finally, they argue that the appeal is timely pursuant to M. R. App. P. 6(3)(k). ¶36 Under M. R. App. P. 6(3)(k), an aggrieved party in a civil case may appeal “[f]rom an order granting or denying a motion for substitution of judge” so long as “the order is the court’s final decision on the referenced matter.” In civil cases, M. R. App. P. 4(5)(a)(i) requires that “the notice of appeal shall be filed with the clerk of the supreme court within 30 days from the date of entry of the judgment or order from which the appeal is taken.” M. R. App. P. 4(2)(c) provides, “Except where the supreme court grants an out-of-time appeal under section (6) of this rule, the timely filing of a notice of appeal or cross-appeal is required in order to invoke the appellate jurisdiction of the supreme court.” We conclude that an order pertaining to a motion for substitution of judge under M. R. App. P. 6(3)(k) must satisfy M. R. App. P. 4’s requirements for being timely. Substitution of a presiding judge is a right that is lost if not exercised early in the case. Section 3-l-804(l)(a), MCA (providing that a motion for substitution in a civil action must be filed within thirty days after either “the first summons is served or an adverse party has appeared[,] ... [or] after service has been completed in compliance with M. R. Civ. P. 4,” depending on which party files the motion). ¶37 It would defeat the purpose of the rule to allow a party to appeal a substitution order only after the case has been finally decided. Here, the order granting Fellows’ motion for substitution of judge was entered in August 2013. The parties thereafter engaged in discovery and summary judgment proceedings in the District Court. That court certified the case to the Water Court, which conferred with the parties, reviewed the District Court record, issued its opinion and an order on certification, and then considered and denied a motion to alter or amend its order. The process consumed approximately two years. Now that the decision is made, the Perry Defendants seek to begin the process anew because the initial substitution of Judge Olson was improper. The rules do not support their argument. We conclude that the Perry Defendants’ appeal of the substitution order is untimely because the notice of appeal from the order was not filed within 30 days. ¶38 Upon remand, however, the case will return to Judge Olson as the judge responsible under § 85-2-406(1), MCA, for supervising both the distribution of water under Perry and Sands and the Water Commissioners appointed to administer the water under both decrees. CONCLUSION ¶39 We affirm the Water Court’s order denying the Perry Defendants’ M. R. Civ. P. 59(e) motion and remand to the Ninth Judicial District Court, the Honorable Robert Olson presiding, for further proceedings. CHIEF JUSTICE McGRATH, JUSTICES COTTER, WHEAT and SHEA concur. Appellants are Patrick Saylor, Farmers Cooperative Canal Company, Eldorado Cooperative Canal Company, Teton Cooperative Canal Company, John D. Peebles, William S. Peebles, Ottis Bryan, and Sylvia Bryan. Appellants refer to themselves collectively as the Perry Defendants and we will do the same. Intervenors claim water rights from the Teton River and were parties in related cases before this Court. Eldorado, ¶ 1; Giese v. Blixrud, 2012 MT 170, ¶ 1, 365 Mont. 548, 285 P.3d 458. Both Eldorado and Giese concerned the Water Commissioner’s diversion of water from the Teton River into the Bateman Ditch. Eldorado, ¶ 7; Giese, ¶ 6.
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JUSTICE McKINNON delivered the Opinion of the Court. ¶1 T.E. (Mother) appeals two orders entered by the Eighteenth Judicial District Court, Gallatin County, terminating her parental rights to her two minor children, C.W.E. and C.M.E. We affirm. ¶2 Mother presents the following issues for review: 1. Did the District Court err in concluding that the conduct or condition that made Mother unfit to parent was unlikely to change within a reasonable time? 2. Did the District Court improperly rely on the statutory presumption contained in § 41-3-604(1), MCA, to conclude that termination of Mother’s parental rights was in her children’s best interests? 3. Did Mother receive ineffective assistance of counsel? FACTUAL AND PROCEDURAL BACKGROUND ¶3 C.W.E., age seven, and C.M.E., age five, were removed from Mother’s care in April 2013 after the Department of Public Health and Human Services (DPHHS) received seventeen referrals over a period of three years alleging Mother abused or neglected her children. On July 30, 2013, upon Mother’s stipulation, the District Court adjudicated C.W.E. and C.M.E. youths in need of care. Also on July 30, 2013, the District Court granted DPHHS temporary legal custody of C.W.E. and C.M.E. for six months. Temporary legal custody was later extended. C.W.E. and C.M.E. have different fathers. C.W.E. currently resides with his father, C.W., in Livingston, Montana, and C.M.E. currently resides with his father, D.E., in Sand Springs, Oklahoma. On June 9, 2015, the District Court terminated Mother’s parental rights, over two years after her children were removed from her care. ¶4 Before termination, DPHHS developed a treatment plan for Mother, which she and her counsel signed on July 30, 2013. The District Court approved Mother’s treatment plan on August 21, 2013. The goal of the treatment plan was for Mother to address her chemical dependency issues in order for her to develop a healthy and positive relationship with her children. Summarized, the specific tasks outlined in Mother’s treatment plan required her to: 1) complete a chemical dependency evaluation and any recommended treatment; 2) complete a psychological evaluation, including a parenting assessment, and follow any resulting recommendations; 3) maintain visitation with her children; 4) abstain from using drugs or alcohol; 5) provide DPHHS her medical history; 6) maintain contact with a Child Protective Services Specialist; 7) develop a plan for continued contact with her children if inpatient chemical dependency treatment is recommended; and 8) abstain from criminal activity. ¶5 In compliance with her treatment plan, Mother completed at least two chemical dependency evaluations on January 3, 2014, and March 30, 2014. In them, Mother admitted a significant history of drug and alcohol abuse. Mother admitted she began drinking in the sixth grade and that from age 29 to age 32 she drank one and a half liters of hard alcohol each day. Mother admitted she began using marijuana at age 12 and now used marijuana daily. Mother admitted she began using methamphetamine at age 15, began using methamphetamine intravenously at age 31, and continues to do so on a daily basis. Mother admitted a history of using various other drugs; including cocaine, opioids, ecstasy, mushrooms, sedatives, inhalants, and spice. Mother admitted she could not control her drug use and that she had tried to stop many times. Mother admitted she had dealt drugs and traded sex for drugs. Mother had an abscess on her face, which she attributed to her methamphetamine use. Mother was unemployed and homeless. The Addiction Counselor recommended Mother complete inpatient treatment at Montana Chemical Dependency Center (MCDC). Mother was initially denied admission because she arrived intoxicated. Later, Mother was admitted to MCDC, but left after 10 days without completing treatment. Although Mother did complete an outpatient detoxification program at MCDC, Mother did not complete the recommended inpatient treatment required by her treatment plan. ¶6 Relevant to her other treatment plan tasks, Mother completed a psychological evaluation and parenting assessment with a psychologist, Dr. Bowman Smelko. Dr. Smelko identified that Mother had mental health issues that could be a result of her substance abuse, but that Mother would need to achieve a year of sobriety before he could establish an accurate mental health diagnosis for her. Mother missed several scheduled visits with her children. Mother admitted to drinking before supervised visits she did attend, and failed urinalysis tests administered directly after visiting her children. Mother missed 23 drug tests between July 14, 2013, and October 21, 2013. Mother either failed to report to tests, failed to test, or tested positive for substances 15 times between March 26, 2014, and February 12, 2015. Mother did not provide her medical history to DPHHS. After her children were removed, but before her parental rights were terminated, Mother was arrested three times. Mother was arrested once for DUI; once for assaulting two individuals, including a police officer; and once for possession of dangerous drugs (methamphetamine). ¶7 The District Court held a termination hearing on January 15, 2015, and continuations of that hearing were held on February 24, 2015, March 3, 2015, and March 9, 2015 (together, Termination Proceedings). Mother did not personally appear at the Termination Proceedings because a bench warrant had been issued for her arrest. She appeared by phone once, on March 3, 2015, but did not testify. During the Termination Proceedings, several witnesses testified, including Dr. Smelko. Dr. Smelko testified that, as of October 2013 when he first evaluated Mother, he believed that once Mother engaged in treatment, it would take her eighteen months to two years to eliminate her drug use. Dr. Smelko testified Mother’s prognosis was poor and, if reunification with her children was pursued, Mother would need significant and intense in-home services to assist her on how to parent appropriately. ¶8 After the Termination Proceedings, the District Court issued findings of fact, conclusions of law, and an order terminating Mother’s parental rights. The District Court concluded Mother’s conduct or condition rendering her unfit was unlikely to change within a reasonable time because Mother has an extensive history and current issues related to untreated substance abuse, is homeless, and has no income. Further, the District Court concluded that “[e]ven if the Mother initiated inpatient treatment today, she could not begin to parent for at least one year — and then only with intensive in home services and support.” The District Court applied the statutory presumption that if a child is in foster care for 15 of the most recent 22 months, termination of parental rights is presumed to be in the child’s best interest. The District Court concluded termination was in the best interests of the children because Mother’s children had been in “out of home care since April 2013, well beyond the 15 of the last 22 months termination presumption time period.” Mother appeals. STANDARD OF REVIEW ¶9 We review a district court’s decision to terminate parental rights for an abuse of discretion. In re L.N., 2014 MT 187, ¶ 12, 375 Mont. 480, 329 P.3d 598 (citation omitted). We review a district court’s findings of fact for clear error and its conclusions of law for correctness. In re L.N., ¶ 12 (citation omitted). An appellant bears the burden of establishing that the district court’s factual findings are clearly erroneous. In re D.F., 2007 MT 147, ¶ 22, 337 Mont. 461, 161 P.3d 825 (citation omitted). “A factual finding is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence, or if our review of the record convinces us that a mistake has been made.” In re C.J.M., 2012 MT 137, ¶ 10, 365 Mont. 298, 280 P.3d 899 (citation omitted). An ineffective assistance of counsel claim presents mixed questions of law and fact which this Court reviews de novo. Sartain v. State, 2012 MT 164, ¶ 9, 365 Mont. 483, 285 P.3d 407. DISCUSSION ¶10 1. Did the District Court err in concluding that the conduct or condition that made Mother unfit to parent was unlikely to change within a reasonable time? ¶11 Mother argues that the District Court incorrectly concluded that the conduct or condition rendering her unfit was unlikely to change within a reasonable time. Criteria for terminating parental rights are outlined in § 41-3-609(1)(f), MCA, which requires: 1) the child be adjudicated a youth in need of care; 2) an appropriate treatment plan that has been approved by the court has not been complied with by the parent or has not been successful; and 3) that the conduct or condition rendering the parent unfit must be unlikely to change within a reasonable time. The third criterion requires a court to assess the parent’s past and present conduct. In re A.S., 2006 MT 281, ¶ 48, 334 Mont. 280, 146 P.3d 778 (citations omitted). In determining whether the conduct or condition rendering a parent unfit is unlikely to change, the court is also required to consider a parent’s “excessive use of intoxicating liquor or of a narcotic or dangerous drug that affects the parent’s ability to care and provide for the child.” Section 41-3-609(2)(c), MCA. The court “do[es] not have a crystal ball to look into to make this determination, so it must, to some extent, be based on a person’s past conduct.” In re M.T., 2002 MT 174, ¶ 34, 310 Mont. 506, 51 P.3d 1141 (quotation and citations omitted). The “best interests of the child are of paramount concern in a parental rights termination proceeding and take precedence over the parental rights.” In re M.A.L., 2006 MT 299, ¶ 18, 334 Mont. 436, 148 P.3d 606 (citation omitted). ¶12 Here, Mother stipulated to her children being youths in need of care. A treatment plan was developed and signed by Mother and Mother’s counsel. Mother did not comply with her treatment plan. The District Court concluded that Mother’s persistent homelessness, unemployment, and extensive history of substance abuse made her unfit and that, even if she began addressing these issues, “she could not begin to parent for at least one year — and then only with intensive in home services and support.” Our review of the District Court’s record indicates Mother has admitted to a substantial, over 15-year history of drug use including daily abuse of alcohol, marijuana, and methamphetamine. Since her children were removed, Mother has been arrested three times; two arrests were for alcohol and drug offenses. At the time of the Termination Proceedings, there was a warrant outstanding for Mother’s arrest. There is clear and convincing evidence in the record that the conduct or condition rendering Mother unfit to parent is unlikely to change within a reasonable time. The District Court’s findings are not clearly erroneous and are supported by substantial evidence. The District Court did not abuse its discretion in concluding Mother’s conduct or condition was unlikely to change within a reasonable time. ¶13 2. Did the District Court improperly rely on the statutory presumption contained in § 41-3-604(1), MCA, to conclude that termination of Mother’s parental rights was in her children’s best interests? ¶14 Mother argues the District Court incorrectly applied the statutory presumption, contained in § 41-3-604(1), MCA, to conclude that termination of her parental rights was in the best interests of her children, because her children were placed with family, not in foster care. “[Cjhildren need not be left to ‘twist in the wind’ when their parents fail to give priority to their stability and permanency.” In re T.S., 2013 MT 274, ¶ 30, 372 Mont. 79, 310 P.3d 538. If a child is in foster care under the physical custody of the state for 15 of the most recent 22 months, termination of parental rights is presumed to be in the child’s best interests. Section 41-3-604(1), MCA. Mother argues her children were placed with family members, not in “foster care,” and that the presumption in § 41-3-604(1), MCA, was inapplicable. Therefore, Mother contends the District Court improperly presumed termination of her parental rights was in her children’s best interests. ¶15 “The granting of temporary legal custody to the department allows the department to place a child in care provided by a custodial or noncustodial parent, kinship foster home, youth foster home, youth group home, youth shelter care facility, or institution.” Section 41-3-442(3), MCA. DPHHS may pursue these forms of foster care placement because it has legal custody of the child. Here, temporary legal custody was granted to DPHHS and authorized DPHHS to pursue any of the placement options found in § 41-3-442(3), MCA. Between the children’s removal in April 2013 and Mother’s termination in June 2015, DPHHS placed C.W.E. and C.M.E. in various kinship foster homes and then with their respective noncustodial fathers. Contrary to Mother’s argument, the distinction between placement in a kinship foster home and other placement options does not alter the application of § 41-3-604(1), MCA. The presumption applies when a child is placed in kinship foster care because DPHHS has legal custody of the child. DPHHS had legal custody of Mother’s children who were in foster care for more than 15 of the 22 months preceding termination. Therefore, the District Court correctly applied the presumption in § 41-3-604(1), MCA, to conclude termination of Mother’s parental rights was in her children’s best interests. ¶16 3. Did Mother receive ineffective assistance of counsel? ¶17 Mother argues her counsel rendered ineffective assistance by failing to “adequately communicate with her.” Parents have a due process right to effective assistance of counsel in termination proceedings. In re A.S., 2004 MT 62, ¶ 20, 320 Mont. 268, 87 P.3d 408. Whether assistance was effective requires review of counsel’s training, experience, and advocacy. In re B.M., 2010 MT 114, ¶ 22, 356 Mont. 327, 233 P.3d 338 (citation omitted). Ineffective assistance of counsel requires reversal only if the parent suffered prejudice. In re B.M., ¶ 22 (citation omitted). ¶18 On January 15, 2015, Mother requested she be represented by alternative counsel in a faxed communication to her assigned counsel. Her assigned counsel notified the District Court of this request during the termination hearing held that same day and, as a result, that hearing was continued. Nevertheless, Mother’s assigned counsel continued to represent Mother at the three continuations with no further objection. Mother does not challenge her assigned counsel’s training or experience, but argues that “lack of communication” impacted her counsel’s ability to advocate for Mother. Mother contends a failure to communicate resulted in no witnesses being called to testify on Mother’s behalf at the Termination Proceedings, which, Mother argues, likely contributed to the District Court’s decision to terminate her parental rights. However, Mother does not state what witnesses her attorney failed to call or what they might have testified to. ¶19 Mother herself did not personally appear at the Termination Proceedings because she was fearful of arrest. Mother does not draw a correlation between her counsel’s purported lack of communication and any specific prejudice she suffered. The District Court relied on substantial evidence to determine that the statutory criteria to terminate Mother’s parental rights were met: 1) that C.W.E. and C.M.E. were youths in need of care; 2) that an approved treatment plan was not complied with or successful; and 3) that the conduct or condition rendering Mother unfit was unlikely to change within a reasonable time. Mother has not demonstrated that her counsel was ineffective or that she was prejudiced as a result. CONCLUSION ¶20 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES WHEAT, BAKER and SHEA concur.
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Dean Jason Ballinger appeals the order of the Thirteenth Judicial District Court, Yellowstone County, which denied his motions to suppress evidence and to dismiss the charge of felony criminal possession of dangerous drugs. Ballinger later was convicted of the charge and sentenced to five years at Montana State Prison. We affirm the District Court’s denial of Ballinger’s motions. ¶2 The issue on appeal is: Whether the District Court correctly found that the police officer had particularized suspicion to conduct an investigatory stop of Ballinger. PROCEDURAL AND FACTUAL BACKGROUND ¶3 On September 28, 2013, at approximately 9:30 p.m., Cindy Trumbo called the Billings Police Department’s dispatch to report that the front door of a house across the street was open. She believed the address was 211 South 33rd Street. Trumbo reported that she saw people moving out of the house earlier in the day, but no one had been around the house for some time. ¶4 Billings Police Officer Grant Morrison responded to the call at 10:13 p.m. When Officer Morrison arrived at 211 South 33rd Street, he found the front door open, the lights on, and no one around. Officer Morrison parked his patrol vehicle on the north side of the house. He then saw a man and a woman, later identified as Ballinger and Julie Ramirez, get out of a vehicle across the street. Officer Morrison testified that “[tjhey were walking straight towards” 211 South 33rd Street. ¶5 As the man and the woman stepped on the curb, Officer Morrison testified that he “intercepted” them. Using his flashlight to see better, Officer Morrison stated that he was responding to a call regarding a vacant residence with a door open. He asked them where they were going, and Ramirez stated that they were going to meet people hanging out on the sidewalk. Officer Morrison did not see anyone else on the sidewalk in the area. Ramirez then said they were going from 622 South 31st Street (later identified as Ballinger’s home) to 522 South 33rd Street (Ramirez’s mother’s home). Officer Morrison testified that, at 211 South 33rd Street, Ballinger and Ramirez would be four blocks out of their way if they were going from Ballinger’s home to Ramirez’s mother’s home. Officer Morrison was suspicious of Ramirez’s and Ballinger’s presence in the area, and he suspected Ramirez was lying to him. ¶6 Officer Morrison asked Ballinger for identification. Ballinger stated, “I just live right down the street.” Officer Morrison responded, “I need to identify you, and this is suspicious to me. And this is what I’m investigating, so ... I want to see ID.” Ballinger’s Montana Identification Card confirmed that his address was 622 South 31st Street. Officer Morrison ran a warrant check on Ballinger. He found a probation violation warrant, and he detained Ballinger while he validated the warrant. While patting down Ballinger, Officer Morrison felt numerous unknown items in Ballinger’s pants pockets. Because no items felt like a weapon, nothing was retrieved from Ballinger’s pockets. Officer Morrison also confirmed that neither Ballinger nor Ramirez lived at 211 South 33rd Street. ¶7 Officer Morrison arrested Ballinger. Ramirez was allowed to leave. Officer Morrison then left Ballinger with Officer Miller, who had arrived as back up. Officer Morrison approached 211 South 33rd Street. He found the lights on and the front door open. Officer Morrison knocked on the door, called out, and rang the doorbell, but received no response. Officer Morrison shut and locked the front door. ¶8 Ballinger was transported to the Yellowstone County Detention Facility. After Ballinger was removed from the patrol vehicle and turned over to the Detention Facility staff, Officer Morrison searched his patrol vehicle. Officer Morrison found a small plastic bag containing a white crystal substance in the back seat. He identified the substance as methamphetamine. The drugs were not present when Officer Morrison started his shift at 9:00 p.m., and no other person had ridden in the back seat of the vehicle that night. On October 7, 2013, Ballinger was charged by information with criminal possession of dangerous drugs, a felony. ¶9 Ballinger moved to suppress the evidence of the drugs, arguing that Officer Morrison did not have particularized suspicion to conduct a stop of Ballinger or Ramirez. Ballinger then argued that the case should be dismissed for lack of evidence. On December 18, 2013, the District Court held a hearing on Ballinger’s motions to suppress and dismiss. ¶ 10 The District Court denied Ballinger’s motions, finding that Officer Morrison had the required particularized suspicion to make the investigatory stop of Ballinger and Ramirez. The District Court based its finding on the suspicious nature of the call, the condition of the home at 211 South 33rd Street, and Officer Morrison’s observation of Ramirez and Ballinger walking directly towards the house. The court also considered facts gathered after Officer Morrison began talking with Ballinger and Ramirez, including Ramirez’s statement that they were going to see people on the sidewalk when no one else was around and Ramirez’s explanation that they were traveling between two homes when they were four blocks out of their way. ¶11 On March 10, 2014, a jury found Ballinger guilty of criminal possession of dangerous drugs, a felony. Ballinger was sentenced to five years at Montana State Prison, and he was designated a persistent felony offender. Ballinger appeals. STANDARDS OF REVIEW ¶12 We review the grant or denial of a motion to suppress to determine whether the district court’s findings of fact are clearly erroneous and whether the court correctly interpreted and applied the law to those facts. State v. Wagner, 2013 MT 159, ¶ 9, 370 Mont. 381, 303 P.3d 285. A district court’s determination that particularized suspicion exists is a question of fact, which we review for clear error. Wagner, ¶ 9. A finding of fact is clearly erroneous if it is not supported by substantial evidence, if the district court misapprehended the effect of the evidence, or if our review of the record leaves us with a definite and firm conviction that a mistake has been made. Wagner, ¶ 9. ¶13 We review the denial of a motion to dismiss in criminal cases de novo to determine whether the district court’s conclusions of law are correct. State v. Seiffert, 2010 MT 169, ¶ 10, 357 Mont. 188, 237 P.3d 669. DISCUSSION ¶14 Whether the District Court correctly found that the police officer had particularized suspicion to conduct an investigatory stop of Ballinger. ¶15 Citizens are protected from unreasonable searches and seizures by government officials under both the Fourth Amendment of the United States Constitution and Article II, Section 11 of the Montana Constitution. Montanans are afforded broader protection from unreasonable searches and seizures under the express right to privacy in Article II, Section 10 of the Montana Constitution. State v. Bullock, 272 Mont. 361, 384, 901 P.2d 61, 75 (1995). ¶16 With limited exceptions, police officers must obtain a warrant before seizing an individual under both the United States Constitution and the Montana Constitution. State v. Graham, 2007 MT 358, ¶ 13, 340 Mont. 366, 175 P.3d 885. One exception to the warrant requirement is the investigatory or “Terry stop,” which allows “a brief seizure of the individual that must be supported by a reasonable [or particularized] suspicion of criminal activity.” State v. Lovegren, 2002 MT 153, ¶ 15, 310 Mont. 358, 51 P.3d 471 (citing Terry v. Ohio, 392 U.S. 1, 88 S. Ct. 1868 (1968)). Such a stop “may not last longer than necessary to effectuate the purpose of the stop.” Section 46-5-403, MCA. ¶17 Ballinger argues that he was seized when Officer Morrison stopped him with a flashlight and began asking him questions. The District Court did not make an explicit finding as to when Officer Morrison seized Ballinger. However, it is clear from the District Court’s order denying Ballinger’s motion to suppress that the court found particularized suspicion by relying upon all of the information Officer Morrison obtained before asking Ballinger for his identification. Implicit in the District Court’s analysis, therefore, is that it found no seizure had occurred until Officer Morrison asked Ballinger for his identification. ¶18 “ ‘[N]ot all personal intercourse between policemen and citizens involves ‘seizures’ of persons. Only when the officer, by means of physical force or show of authority, has in some way restrained the liberty of a citizen may we conclude that a ‘seizure’ has occurred.’ ” State v. Wilkins, 2009 MT 99, ¶ 8, 350 Mont. 96, 205 P.3d 795 (quoting Terry, 392 U.S. at 19 n.16, 88 S. Ct. at 1879 n.16). To determine if a seizure has occurred, this Court applies the same test under both the United States and Montana Constitutions. State v. Strom, 2014 MT 234, ¶ 10, 376 Mont. 277, 333 P.3d 218. “ ‘[A] person has been ‘seized’ within the meaning of the Fourth Amendment only if, in view of all of the circumstances surrounding the incident, a reasonable person would have believed that he was not free to leave.’ ” Wilkins, ¶ 9 (quoting U.S. v. Mendenhall, 446 U.S. 544, 554, 100 S. Ct. 1870, 1877 (1980)). Circumstances which may indicate that a person has been seized include the presence of many officers, a display of weapons by an officer, physical touching of the person by the officer, or the officer’s use of language or tone indicating compliance with the officer’s request is required. Strom, ¶ 10 (citing Mendenhall, 446 U.S. at 554, 100 S. Ct. at 1877). However, these factors are not exhaustive. Strom, ¶ 10. ¶19 The record in this case does not support Ballinger’s contention that a seizure occurred before Officer Morrison asked for his identification. Officer Morrison first “intercepted” Ballinger and Ramirez as they were walking on a public street towards the vacant house that he was investigating. In State v. Dupree, 2015 MT 103, 378 Mont. 499, 346 P.3d 1114, this Court held that the defendant was not seized when officers approached her in a public place of her choosing, identified themselves as law enforcement officers, and told her about a tip they had received that indicated that she would be carrying drugs. Dupree, ¶ 15. We further held the defendant was not seized when the officers asked the defendant if she would sign a consent form for a search or when they asked her to move to another room. Dupree, ¶ 15. ¶20 Here, the parties were on a public street, and Officer Morrison told Ballinger and Ramirez that he was investigating a suspicious call regarding a vacant house with an open door. Wanting to know if they were connected to the vacant house, he asked them where they were going. Officer Morrison made no show of force or authority; he merely used a flashlight to see better in the dark. Officer Morrison did not ask Ballinger or Ramirez to do anything until he requested their identification and stated, “I need to identify you, and this is suspicious to me. And this is what I’m investigating, so ... I want to see ID.” The State concedes that at this point the encounter became a seizure because Ballinger and Ramirez would not have felt free to stop the encounter and walk away. ¶21 Regardless of when he was seized, Ballinger contends that Officer Morrison did not have particularized suspicion for the stop. A police officer “may stop any person or vehicle that is observed in circumstances that create a particularized suspicion that the person or occupant of the vehicle has committed, is committing, or is about to commit an offense.” Section 46-5-401(1), MCA. A police officer has particularized suspicion to conduct an investigatory stop when the officer has “(1) objective data and articulable facts from which he or she can make certain reasonable inferences; and (2) a resulting suspicion that the person to be stopped has committed, is committing, or is about to commit an offense.” Brown v. State, 2009 MT 64, ¶ 20, 349 Mont. 408, 203 P.3d 842. When reviewing whether a police officer had particularized suspicion, a court must “look to the facts and to the totality of the circumstances of each case.” Brown, ¶ 20. ¶22 Before Officer Morrison requested Ballinger’s identification, Officer Morrison had objective data and articulable facts from which he could reasonably infer and suspect that Ballinger was involved in criminal activity. Just as Officer Morrison was responding to a call regarding a vacant house with an open door at 211 South 33rd Street, Ballinger and Ramirez arrived at the same house, and Officer Morrison observed them walk directly towards the house. Officer Morrison stopped Ballinger and Ramirez and told them he was investigating a vacant house with an open door. When asked where they were going, Ramirez stated that they were meeting people on the sidewalk, but Officer Morrison did not observe any other people in the vicinity. Ramirez also explained that they were travelling between two homes that Officer Morrison observed would not normally take them past the vacant house they were walking directly towards. ¶23 Based on the totality of the facts and circumstances of this case, Officer Morrison had a particularized suspicion that justified an investigatory stop of Ballinger. The evidence collected as a result of the investigatory stop and validly executed arrest warrant was admissible at trial. The District Court correctly denied Ballinger’s motions to suppress the evidence and dismiss the charge. CONCLUSION ¶24 The District Court correctly found that Officer Morrison had particularized suspicion to conduct an investigatory stop of Ballinger. Therefore, Ballinger’s motions to suppress the evidence gathered as a result of the stop and to dismiss the charge of criminal possession of dangerous drugs for lack of evidence were correctly denied. Affirmed. CHIEF JUSTICE McGRATH, JUSTICES McKINNON, COTTER and RICE concur.
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CHIEF JUSTICE McGRATH delivered the Opinion of the Court. ¶1 Objectors to the Crow Water Compact appeal from the Montana Water Court’s orders of December 24, 2014, and May 27, 2015, ruling in favor of the settling parties’ motion for summary judgment and approving the Water Compact with a final order. ¶2 We affirm the decision of the Water Court. ISSUES ¶3 We restate the issues on appeal as follows: ¶4 Issue One: Did the Water Court apply the proper legal standard of review in approving the Compact in the final order? ¶5 Issue Two: Did the Objectors meet their burden of proof under the standard of review applied to compacts? ¶6 Issue Three: Did the Crow Compact negotiation process violate the Objectors’ due process rights? BACKGROUND ¶7 This case represents the second appeal from the Crow Water Compact, an agreement to distribute and manage water rights among the United States, the Crow Tribe and the State of Montana (“Settling Parties”). The Crow Tribe, the United States through the Department of the Interior, and the Montana Reserved Water Rights Compact Commission agreed to the terms of the Compact in 1999, and the Montana Legislature ratified it the same year. The Compact is codified at § 85-20-901, MCA. The Crow Tribe ratified the Compact by vote of its members in 2011. We recently discussed the facts pertaining to the establishment and history of the Crow Water Compact in a previous appeal, and they will not be repeated here. In re Crow Water Compact, 2015 MT 217, 380 Mont. 168, 354 P.3d 1217 (“Crow F). ¶8 This appeal arises from the concerns of individual Objectors to the Water Compact. The Objectors in this case are not parties to the Compact, however, some of the Objectors own land and water rights within the exterior boundaries of the reservation and assert that the Crow Compact will adversely affect their interests. ¶9 In 2012, the Water Court entered a preliminary decree containing the terms of the Compact. After sending notice to over 16,000 persons and entities, the Water Court received approximately 100 objections. Fifteen Objectors remain. ¶10 Pursuant to § 85-2-702(3), MCA, the Compact must be published upon ratification and “must be included in the preliminary decree as provided by 85-2-231, and unless an objection to the Compact is sustained under 85-2-233, the terms of the Compact must be included in the final decree without alteration.” The Water Court approved the Crow Water Compact in a final decree on May 27, 2015. ¶11 The purpose of the Compact was to establish the water rights of the Crow Tribe relative to the rights of the state of Montana and the United States. Crow I, ¶ 17-18. These water rights are quantified using the Practicably Irrigable Acreage standard (PIA). See State ex rel. Greely v. Confederated Salish & Kootenai Tribes, 219 Mont. 76, 92, 712 P.2d 754, 764 (1985); In re General Adjudication of All Rights to Use Water in the Gila River System and Source, 201 Ariz. 307, 316-17, 35 P.3d 68, 77-78 (Ariz. 2001). During the Compact negotiations, the Settling Parties differed on the extent of PIA (and thus the amount of water) the Tribe was entitled to under Winters v. United States, 207 U.S. 564, 577-78, 28 S. Ct. 207 (1908). The Settling Parties sought to protect their respective interests without obtaining an expensive and time-consuming survey or years of complex litigation. ¶12 The Tribal Water Rights are articulated by basin in Article III of the Compact. First, it was established that the Tribe has a 500,000 acre feet per year (AFY) natural flow right from the Big Horn River Basin. Additionally, the United States conditionally granted the Tribe another 300,000 AFY, divided into two 150,000 AFY components, from its water right in Bighorn Lake. Second, the Compact states that the Tribe has “all surface flow, groundwater and storage” rights in the other basins covered by the Compact. Finally, the Tribe is also required to reserve 250,000 AFY of the Tribal Water Right between the Yellowtail Afterbay Dam and the Two Leggins diversion facility for the benefit of the fisheries and other recreational purposes. ¶13 The Objectors raise the following issues on appeal: First, the Objectors contend that the Water Court did not apply the proper legal standard regarding their obligation to prove injury from the application of the Compact. Second, the Objectors raise several issues concerning the extent of their injury from the operation of the Compact. Third, the Objectors claim that their due process rights were violated during the Compact negotiation process. We have restated the issues for clarity and brevity and collapse all the objections concerning water rights in the Compact under Issue Two. We do not reach whether the Objectors are entitled to attorneys’ fees under the Private Attorney General Doctrine because the appeal affirms the Water Court’s order. STANDARD OF REVIEW ¶14 This Court applies the same standards of review to decisions of the Water Court as it does to decisions of a district court. Mont. Trout Unlimited v. Beaverhead Water Co., 2011 MT 151, ¶ 16, 361 Mont. 77, 255 P.2d 179. This Court reviews the Water Court’s findings- of fact under the clearly erroneous standard. Weinheimer Ranch v. Pospisil, 2013 MT 87, ¶ 19, 369 Mont 419, 299 P.3d 327. This Court reviews the Water Court’s conclusions of law de novo to determine whether they are correct. Skelton Ranch v. Pondera Co. Canal & Res. Co., 2014 MT 167, ¶ 26, 375 Mont. 327, 328 P.3d 644. DISCUSSION ¶15 Issue One: Did the Water Court apply the proper legal standard of review in approving the Compact in the final order? ¶16 The Objectors maintain that the Water Court committed reversible error in holding that the Objectors must show “material injury” before the Court could rule the decree unreasonable. The Objectors argue that they only need to show “good cause” or that the Compact is not “fundamentally fair, adequate and reasonable and conforming] to the law.” Officers for Justice v. Civil Serv. Comm., 688 F.2d 615, 625 (9th Cir. 1982). ¶17 The Objectors confuse the standard for filing the initial objection with the standard for ultimately declaring the Compact to be unreasonable. Pursuant to § 85-2-233(1), MCA, Objectors need only show “good cause” to trigger the requirement for the Water Court to hold a hearing on the objection to the Compact. Additionally, under § 85-2-233(4), MCA, “[objections ... must specify the paragraphs and pages containing the findings and conclusions to which objection is made. The request must state the specific grounds and evidence on which the objections are based.” However, “good cause” is not the standard the Water Court should apply in determining the ultimate reasonableness of the Compact itself. ¶18 In Crow I we noted the correct standard in reviewing objections to compacts: [T]he court’s intrusion upon what is otherwise a private consensual agreement negotiated between the parties to a lawsuit must be limited to the extent necessary to reach a reasoned judgment that the agreement is not the product of fraud or overreaching by, or collusion between, the negotiating parties, and that the settlement, taken as a whole, is fair, reasonable and adequate to all concerned. Officers for Justice, 688 F.2d at 625. Furthermore, the Water Court has in previous cases adopted complementary standards in addition to Officers for Justice in reviewing water compacts. In the Matter of the Adjudication of the Existing and Reserved Rights to the use of Water both Surface and Underground, of the Chippewa Cree Tribe of the Rocky Boy’s Reservation within the State of Montana, WC-2000-01, Mem. Op., 2002 ML 4232, at 6 (Mont. Water Ct., June 12, 2002) (hereinafter Chippewa Cree); In the Matter of the Adjudication of the Existing and Reserved Rights to the use of Water both Surface and Underground, of the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation within the State of Montana in Basins 40E, 40EJ, 40O, 40Q, 40R & 40S, WC-1992-01, Mem. Op. at 7 (Mont. Water Ct. August 10, 2001) (hereinafter Fort Peck). In cases in which the objector was a non-party to a compact, the Water Court first assesses whether “the decree was the product of good faith, arms-length negotiations,” and if so, the “negotiated decree is presumptively valid and the objecting party has a heavy burden of demonstrating that the decree is unreasonable.” United States v. Oregon, 913 F.2d 576, 581 (9th Cir. 1990) (internal citations and quotations omitted). Thus, if the court finds that “the decree was the product of good faith, arms-length negotiations,” the burden of proof on the objector changes and it must show that the decree is unreasonable. Oregon, 913 F.2d at 581. The Water Court has in previous water compact cases articulated that the “heavy burden” the objector must show is that its interests are “materially injured by operation of the Compact.” Chippewa Cree at 6; Fort Peck at 7. In this case, the Water Court applied the analysis as articulated above; we conclude that there is no error in law in the Water Court’s application of this standard. ¶19 Issue Two: Did the Objectors meet their burden of proof under the standard of review applied to compacts? ¶20 The Objectors do not challenge that the Compact was negotiated at arm’s length and in good faith. Therefore, the Compact is presumptively valid and the Objectors are obliged to show that the Compact is unreasonable and that their interests are materially injured. ¶21 The Objectors raise the following issues concerning the language of the Compact and the allocation of water rights: First, that the Compact failed to conform to applicable law as established by Winters and its progeny. Second, that the Compact violates the Objectors’ property rights by giving all the water in the smaller drainages to the Tribe and authorizing the Tribe to enter any land for diversion purposes. Third, the Compact is unreasonable because it (i) over-appropriated/failed to quantify water to the Tribe, (ii) the State negotiated the Compact contrary to the public interest, and (iii) the closure of basins injures the Objectors. None of these arguments obviates the need for the Objectors to demonstrate that the Compact materially injures their interests. Officers for Justice, 688 F.2d at 625; Oregon, 913 F.2d at 581; Chippewa Cree at 6; Fort Peck at 7. ¶22 “The objective of the Compact, which is a negotiated settlement, is to define the Tribe’s Winters rights, eliminate litigation risk and expense, and achieve finality for the Tribe and other parties to the agreement.” Crow I, ¶ 38. If the courts were to reexamine every issue in consent decrees and settlements with the minutia that the Objectors request in relation to the Tribe’s Winters rights, it would defeat the purpose of compacts. ¶23 It is important to note that under the terms of the Compact itself, no user of the Tribal Water Right as defined therein can assert senior priority against any state-law water user with a pre-1999 right, the year that the Compact was ratified and adopted by the Montana Legislature. See § 85-20-901, MCA, Art. III, Sec. A.6.a; see also Art. III, Secs. B.6.a, C.6.a, E.6.a, F.6.a. The Tribal Water Right cannot be exercised ahead of pre-1999 state-law rights. Thus the amount of water available to pre-1999 state law rights is protected and certainly not materially injured by the Compact. ¶24 The approach the Compact applies to quantification and allocation of water rights does not render the Compact unreasonable. The Objectors invite the Court to reconsider the allocation of water as a departure from controlling law. Specifically, they desire the Court to make a determination regarding the Tribe’s water rights under Winters. At trial, the Objectors introduced expert testimony that the Tribe had been allocated more water than it was entitled to under its Winters rights. Objectors’ expert testimony suggested that the Tribe was over-allocated water based on (1) 300,000 AFY storage right in Big Horn Lake, (2) that the Tribal Water Right should be discounted because of the land status within the reservation, and (3) return flow from Tribal diversions should count against the total AFY the Tribe received. ¶25 We cannot conclude that the Water Court was clearly erroneous in adopting the compromise reached by the Settling Parties. The storage right in Big Horn Lake was a grant from the Federal Government subject to limitations in the Streamflow and Lake Level Management Plan. Section 85-20-901, MCA, Art III, Sec. A.6.a.7. The Objectors do not show how this grant from the federal government is beyond the legal authority of the U.S. The status of land within the reservation is uncertain and the Objectors’ hydrological expert admitted as much at trial. Thus, it is difficult to support that objection with anything other than speculation. And, substantial evidence exists to demonstrate that return flow from Tribal diversions does not reduce the amount of water available downstream. The potential of the Tribe not using all the water it was allocated is also speculative and not indicia of over-allocation, especially if the Objectors have sufficient water for their own diversions. As the court articulated in Officers for Justice, it is not appropriate for the Court “to reach any ultimate conclusions on the contested issues of fact and law which underlie the merits of the dispute, for it is the very uncertainty of outcome in litigation and avoidance of wasteful and expensive litigation that induce consensual settlements.” Officers for Justice, 688 F.2d at 625. ¶26 Additionally, the Objectors challenge the legality of the allocation of water on the Ceded Strip. They claim that the 47,000 AFY allocated to the Tribe was an arbitrary number that was allocated for an improper purpose and that in times of shortage it may affect the water rights of some of the Objectors. ¶27 However, under Winters and its progeny the tribe has a right to water for development of industrial interests. Winters, 207 U.S. at 564. 28 S. Ct. at 207; Greely, 219 Mont. at 93, 712 P.2d at 765. The Tribe’s interests in the Ceded Strip are primarily mineral deposits (coal) that may be developed for industrial purposes. The allocation of water in the Ceded Strip reflects the opportunity to do that for the Tribe. As with the other Compact provisions, the Tribal allocation of water on the Ceded Strip was a result of arms-length negotiations between the Settling Parties, and the Tribal water rights in the Ceded Strip are limited by the Compact. ¶28 The Compact provides for the protection of state water rights and limitations of the amount of water that may be diverted from either the Bighorn River Basin or the Yellowstone River drainages. See § 85-20-901, MCA, Art. III, Secs. F.6, F.1.a.(1). Given these protections in the Compact and the calculation of the water right based on the development of mineral deposits we cannot conclude that the Water Court was clearly erroneous in adopting the Compact allocation of water for the Ceded Strip. ¶29 The Compact does not compromise state-based water rights. The Objectors argue that the Compact extinguishes the state-based water rights in all the drainages other than the Big Horn and Yellowstone. The Objectors cite Article III Sections B, C, D, and E of the Compact, which state that “the Tribe has a water right for all surface water, ground water and storage within” those basins. However, the Compact also states in the same sections that water rights recognized under state law with priority dates before June 1999 are protected from assertions “of senior priority in the exercise of current uses of the Tribal Water Right.” The Compact also clarifies that any new development of the Tribal Water Right shall be junior to state-based water right holders. Effectively, any new development from June 1999 will be junior to the Objectors’ rights. See § 85-20-901, MCA, Art. III, Secs. B.6, C.6, D.6, E.6. ¶30 The Objectors misunderstand how the Compact allocated water rights to the Tribe relative to state-based rights in these basins. Although the Compact grants all the water in these basins to the Tribe, it is subject to a significant caveat designed to protect existing state-based rights. The Compact also grants a degree of protection to state-based rights that are junior to the Tribal water rights. Section 85-20-901, MCA, Art. Ill, Secs. B.6, C.6, D.6, E.6. Therefore, under the plain language of the Compact, state-based rights are not nullified; in fact, they are given a degree of protection that would otherwise not be available absent the Compact. It is not unreasonable to quantify the Tribe’s rights in these basins by the entirety of the water available if state-based rights are not affected. The Objectors have failed to meet their burden to prove the Compact materially injures them with respect to the integrity of state rights under the Compact. ¶31 The lack of tribal institutions for the administration of water rights does not constitute material injury to the Objectors. The Objectors raise arguments regarding the distribution and administration of the water rights in times of shortage. The Objectors reference the lack of Tribal administration in situations in which shortage of water may require judicial involvement. The Objectors contend that the nonexistence of these administrative institutions materially injures their interests. However, as we held in the previous Crow Compact appeal, the Water Court’s review of the Compact is limited to Article III. Section 85-20-901, MCA, Art. VII, Sec. B; Crow I, ¶ 8. Thus, our review of the Water Court’s assessment is limited as well. Still, the Objectors are mistaken in their argument that the Compact removes enforcement of state-based rights from state agencies and courts. Article IV of the Compact plainly states that the Tribal water right is administered by the Tribe (or the Bureau of Indian Affairs in the absence of appropriate Tribal institutions). Section 85-20-901, MCA, Art. IV, Sec. A.2.a. Conversely, “the Tribe shall not administer any water right recognized under state law.” Section 85-20-901, MCA, Art. IV, Sec. A.2.c (emphasis added). The Compact protects state-based rights. Section 85-20-901, MCA, Art. Ill, Secs. B.6, C.6, D.6, E.6. The Compact may not authorize the Tribe to take water from the Objectors. And in times of shortage, the Objectors may enforce their rights under state law with state agencies and in state court. Section 85-20-901, MCA, Art. IV, Sec. A.2.c. The Compact explicitly offsets the potential for injury to state-based water right holders. Consequently, the Objectors have failed to meet their burden to prove the Compact materially injures them with respect to the administrative provisions in the Compact. ¶32 The Compact does not permit the unconditional entry of the Tribe onto private land. The Objectors argue that the Compact injures their interest because it includes language that allows the Tribe to “divert or permit the diversion of the Tribal water right from any place and by any means for use in connection with the Tribal interests.” See § 85-20-901, MCA, Art. III, Secs. A.4, B.4, C.4, D.4, E.4, F.4. They argue that this language will permit the Tribe to enter the private land of the Objectors and divert water from it for the Tribe’s benefit. ¶33 However, a diversion is a change in use of water. Section 85-2-402, MCA. Thus, under Article IV of the Compact, which establishes the proper judicial channels for changes in use, the Tribe may not enter private fee land without the owners’ permission or the appropriate legal authority otherwise acquired from a state agency or court. Furthermore, the Compact expressly prohibits an interpretation of the text that would “impair, amend, or alter rights under existing state or federal law.” Section 85-20-901, MCA, Art. V, Sec. B.11. The Objectors have rights existing under state law and the Tribe may not invoke the Compact to grant them authority to impair, amend, or alter the rights existing under state law. In fact, these principles are clearly reflected in the Compact Commission Staff Report which says, “the tribe can divert water from any point... where it owns land or has the permission of the landowner to divert.” Reserved Water Rights Compact Commission, 83, 94, 96, 97, 100, 103 (emphasis added). The Objectors have failed to meet their burden to prove the Compact materially injures them with respect to entering private land. ¶34 The closure of several basins does not compromise Objectors’ rights. Objectors submit that they have suffered injury due to the closure of the basins. The Objectors argue that the Compact would freeze these basins in time, effectively disallowing “progress based on technology, improved practices, changes in irrigation and livestock methods and methodology.” The Objectors speculate that the Tribe would object to change in use of a state water right since the Tribe was granted all the unappropriated waters in these basins. ¶35 However, the Water Court correctly explained that the Objectors do not have a property interest in future appropriations or changes in use. Seven Up Pete Ventures v. State, 2005 MT 146, ¶ 26, 327 Mont. 306, 114 P.3d 1009. Furthermore, the Compact authorizes changes of use or the transfer of state water rights provided that the change or transfer does not adversely affect an existing use of a Tribal water right. Section 85-20-901, MCA, Art. IV Sec. D.2. Nevertheless, the Objectors’ main contention here is the future potential problems that might arise with the administration of water rights under the Compact. Not only is it speculative but it is also beyond the scope of our review. The Objectors have failed to meet their burden to prove the Compact materially injures them with respect to closure of the smaller basins. ¶36 The Objectors argue that the State negotiated contrary to public interest. The Objectors also claim that the Compact is overreaching because the Tribe was given 250,000 extra AFY for the maintenance of the Blue Ribbon Fishery. The Objectors suggest that the Montana Constitution declares that the water is for the benefit of the people (in this case for private appropriation) and reserving that water for the maintenance of the fishery is inappropriate. However, this argument does not stand up to scrutiny. Allocation of water for public recreation and maintenance of aquatic life is not inconsistent with the public interest. Pursuant to the Montana Constitution, “waters within the boundaries of the state [are] the property of the state for the use of its people.” Mont. Const, art. IX, § 3(3). The Compact has been ratified by the Legislature and it is squarely within the authority of the Legislature to reserve water for public and recreational use. Reserving water for “public recreational purposes and for the conservation of wildlife and aquatic life” is for the benefit of the public. Sections 85-1-101(5), 85-2-102, MCA; Mont. Trout Unlimited v. Beaverhead Water Co., 2011 MT 151, ¶ 30, 361 Mont. 77, 255 P.3d 179. Allocating water for the maintenance of aquatic life does not constitute an “extra” allocation to the Tribe nor does it make the Compact overreaching. Thus, the Objectors have failed to meet their burden to prove the Compact materially injures them with respect to the maintenance of the fishery. ¶37 Under the circumstances as presented in this case, the Crow Water Compact is presumed valid and the Objectors carry a heavy burden of proof. The Objectors fail to meet their burden of showing that the Compact was unreasonable and materially injures their interest. We cannot conclude that the Water Court committed clear error in its final order. ¶38 Issue Three: Did the Crow Compact negotiation process violate the Objectors’ due process rights ? ¶39 The Objectors submit that the Compact approval process violated their due process rights under the Montana Constitution. Mont. Const. art. II, § 17. They further claim they did not have a meaningful opportunity to be heard and cite Crismore v. Montana Board of Outfitters. “Procedural due process requires both notice of a proposed action and some form of hearing that provides a meaningful and timely opportunity to be heard before property is taken.” 2005 MT 109, ¶ 15, 327 Mont. 71, 111 P.3d 681. However, the record shows that the negotiation sessions were open to the public, noticed drafts were made public for their review in advance, and the Montana Legislature solicited public comments and held public meetings. Therefore the Compact did not violate the Objectors’ due process rights because Objectors had opportunities to be heard and to comment on the Compact. CONCLUSION ¶40 The Water Court’s final order is affirmed. JUSTICES McKINNON, BAKER, SHEA and RICE concur. See Reserved Water Rights Compact Commission, Staff Report, 22 (2010). For a description of the Ceded Strip, see Department of Revenue v. Bird, 252 Mont. 438, 440, 829 P.2d 941, 942 (1992).
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JUSTICE BAKER delivered the Opinion of the Court. ¶ 1 Sherri Elaine Rose appeals the findings of fact, conclusions of law, and decree of dissolution of the Thirteenth Judicial District Court, Yellowstone County, dissolving her marriage to Michael Thomas Rose. We restate the issue on appeal as follows: Whether the District Court erred in allocating delinquent tax liability equally between the parties after taxing authorities had determined that Sherri was an “innocent spouse” for purposes of joint tax liability. ¶2 We affirm. PROCEDURAL AND FACTUAL BACKGROUND ¶3 Sherri and Michael married in 1994 and have three children. They resided together in Billings, Montana, for the majority of their marriage before separating in late 2012. Sherri filed a petition for dissolution in March 2013 and, on April 24, 2014, the District Court held a bench trial. ¶4 During their marriage,. Michael worked in medical equipment sales and Sherri was primarily a homemaker. Following their separation, Michael moved to Florida to take a job as a surgical supplies sales representative trainer. Sherri returned to work as a cosmetologist, a profession she had held prior to the marriage. ¶5 In 2005, Sherri and Michael bought a house at 2407 Teton Avenue, Billings. Sherri and Michael bought the Teton property as an investment; they planned to improve the house and “flip” it. Over the course of several years, they invested approximately one hundred thousand dollars into improving the Teton property. They were unable to sell it due to the downturn in the housing market following the 2008 financial crisis. Sherri and Michael also owned a recreational cabin in Red Lodge. ¶6 In 2006, Sherri and Michael began to accrue both federal and state income tax liability. By 2012, they had accumulated over $70,000 in delinquent tax liability to the Internal Revenue Service (IRS) and $20,000 in delinquent tax liability to the Montana Department of Revenue (Department). As a consequence, state and federal taxing authorities placed tax liens on both of the Roses’ real properties. ¶7 At the dissolution proceeding, Michael testified that their tax liability accrued because he and Sherri decided to apply the income intended to pay their taxes to improving the Teton property. Their plan, he testified, was to pay the tax liability once the Teton property was sold. He further testified that income that should have been put toward the tax liability also was spent on “vacations and what have you.” Michael proposed during the dissolution proceeding that the tax liability be considered marital debt and that both the Teton property and the Red Lodge property be sold to pay off the tax liability. ¶8 Sherri testified that she was aware that the tax liability was incurred during the marriage and acknowledged that she and the family benefitted from the income that created the tax liability. Prior to the dissolution proceeding, however, she sought and obtained a determination from both the IRS and the Department that she was an “innocent spouse.” The IRS and the Department therefore concluded that Sherri was not liable to the agencies for any of the delinquent tax liability. As a result of the innocent spouse relief, Sherri testified that she received refunds from the IRS and the Department totaling nearly $11,000. Sherri proposed during the dissolution proceeding that the tax liability not be considered marital debt due to her status as an “innocent spouse” and that she be awarded the Teton property. ¶9 At the conclusion of the proceeding, the District Court orally pronounced that it intended to order that both the Teton property and the Red Lodge property be sold, in part, to pay the tax liability: It’s my conclusion that the only reason the tax liability occurred is because [Sherri and Michael] put the money into either living expenses or into the Teton Avenue home and it’s — even though it’s — the IRS decided that they weren’t going to go after Ms. Rose, I think it is a marital debt and should be paid for out of the proceeds. In its written findings of fact, conclusions of law, and decree of dissolution, the court ordered that the Teton and Red Lodge properties be sold and that the proceeds be put towards paying off the tax liability. The court found, “Although the IRS has decided that were [sic] weren’t going to pursue the tax liability against Sherri, the Court finds that the tax liabilities are joint marital obligations because the parties put the money into living expenses or the Teton Avenue home.” Sherri appeals the court’s finding and conclusion regarding the tax liability. STANDARD OF REVIEW ¶10 We review a district court’s findings of fact pertaining to marital property division to determine if they are clearly erroneous. In re Marriage of Crowley, 2014 MT 42, ¶ 24, 374 Mont. 48, 318 P.3d 1031. A finding is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence, or if our review of the record convinces us that a mistake has been made. Crowley, ¶ 24. We review a district court’s conclusions of law to determine if they are correct. In re Marriage of Bartsch, 2007 MT 136, ¶ 9, 337 Mont. 386, 162 P.3d 72 (hereafter Bartsch II). Absent clearly erroneous findings, we will affirm a district court’s property division unless we identify an abuse of discretion. Bartsch II, ¶ 9. DISCUSSION ¶11 Whether the District Court erred in allocating delinquent tax liability equally between the parties after taxing authorities had determined that Sherri was an “innocent spouse” for purposes of joint tax liability. ¶12 On appeal, Sherri contends that because the District Court did not adequately consider the IRS’s and the Department’s innocent spouse determinations, it erred in apportioning the delinquent tax liability equally between the parties. She asserts that the District Court “wholly misunderstood or misapplied” the administrative rulings that she was an “innocent spouse” and not responsible for the tax liability. She argues that in order to obtain innocent spouse status, she had to prove that she did not know and had no reason to know of the nonpayment and that it would be inequitable to hold her liable for the debt. Sherri maintains that, because she could not have been found to be an “innocent spouse” unless she did not receive a material benefit from the understatement of tax, the District Court improperly disregarded the taxing authorities’ rulings in reaching a contrary finding. ¶13 In response, Michael argues that the administrative rulings have no preclusive effect in the dissolution proceeding and that the District Court did not err in concluding that the tax liability should be treated as marital debt based on substantial evidence that the parties put the money into joint living expenses or into the Teton property. ¶14 Sherri’s reply, on one hand, appears to acknowledge that the administrative determinations do not have preclusive effect. On the other hand, she maintains that she could not have been granted innocent spouse status unless she did not materially benefit from the untaxed income. Michael, she points out, did not appeal from the administrative determinations. For the District Court to reach a contrary conclusion, it would have to point to specific evidence in the record and explain why equity required a result different from that reached by the taxing authorities. In this regard, Sherri argues that the District Court’s findings of fact are inadequate “in determining what evidence the court used to order relief ignoring both taxing authorities.” ¶15 Innocent spouse relief from joint tax liability is an administrative remedy provided for by both Montana and federal statute. Under Montana statute, “A taxpayer who has obtained relief from joint and several liability under section 6015 of the Internal Revenue Code, 26 U.S.C. 6015, may apply to the department for relief from joint and several liability of the tax imposed by this chapter.” Section 15-30-2646(1), MCA. Under federal statute, “an individual who has made a joint return may elect to seek relief’ from joint tax liability if she meets certain requirements. 26 U.S.C. § 6015(a)(1). The relevant requirements for such relief include: (A) a joint return has been made for a taxable year; (B) on such return there is an understatement of tax attributable to erroneous items of one individual filing the joint return; (C) the other individual filing the joint return establishes that in signing the return he or she did not know, and had no reason to know, that there was such an understatement; (D) taking into account all the facts and circumstances, it is inequitable to hold the other individual liable for the deficiency in tax for such taxable year attributable to such understatement... 26 U.S.C. § 6015(b)(1). In determining whether it is inequitable to hold a spouse requesting innocent spouse relief liable for an understatement of tax, “[o]ne relevant factor ... is whether the requesting spouse significantly benefited, directly or indirectly, from the understatement. A significant benefit is any benefit in excess of normal support.” 26 C.F.R. § 1.6015-2(d). The record before the District Court does not substantiate any factual determinations made either by the IRS or by the Department in awarding Sherri innocent spouse relief. ¶16 To address Sherri’s arguments fully, we first clarify that the doctrines of claim and issue preclusion do not apply here to foreclose the District Court’s determination that the tax liability is a marital debt. First, we have held that claim and issue preclusion may apply to an administrative decision that has been “upheld on judicial review.” Rooney v. City of Cut Bank, 2012 MT 149, ¶ 17, 365 Mont. 375, 286 P.3d 241 (citing Parini v. Missoula Cnty. High Sch. Dist., 284 Mont. 14, 23, 944 P.2d 199, 204 (1997)). See also Dobson v. Dobson, 159 S.W.3d 335, 337 (Ky. Ct. App. 2004) (concluding that the “IRS’s determination for innocent spouse relief is not entitled to preemption or res judicata because it involves only an administrative process rather than an adjudication”). The IRS’s and the Department’s administrative decisions that Sherri is an “innocent spouse” were not subjected to judicial review. ¶17 In addition, the administrative proceedings do not satisfy all elements that must be met in order to bar re-litigation of an issue. Among those elements is that the issues decided in the prior adjudication must be identical to the issues raised in the current litigation. Rooney, ¶ 17; Planned Parenthood v. State, 2015 MT 31, ¶ 13, 378 Mont. 151, 342 P.3d 684 (concluding that “[t]he identity of issues is the most important element of issue preclusion”). An innocent spouse determination involves considerations different from a district court’s division of a marital estate. Under an innocent spouse determination, “[t]he IRS’s only concern is the identity of the spouse to whom it will look for payment of the delinquent taxes ....” In re Marriage of Hargrave, 36 Cal. App. 4th 1313, 1320 (Cal. App. 2d Dist. 1995) (citations omitted). In other words, the IRS is concerned only with which party will be responsible for payment to the government of the delinquent taxes. ¶18 In contrast, a district court’s concern in a dissolution proceeding is the equitable apportionment of the marital estate. Section 40-4-202(1), MCA (stating in pertinent part that the court must “equitably apportion between the parties the property and assets...”). In equitably apportioning the marital estate, the court generally must determine the marital estate’s net worth. In re Marriage of Lewton, 2012 MT 114, ¶ 15, 365 Mont. 152, 281 P.3d 181. This determination necessarily requires the court to consider marital debt. Crowley, ¶ 31 (citing In re Marriage of Rudolf, 2007 MT 178, ¶ 23, 338 Mont. 226, 164 P.3d 907 (concluding that by not considering the parties’ debt, “the true net worth of the marital estate was not accurately determined” and therefore the issue of equitable apportionment could not be resolved)). We have defined “marital debt” as “all debt incurred by either party during the marriage.” In re Marriage of Scoffield, 258 Mont. 337, 342, 852 P.2d 664, 667 (1993). We have not examined previously how an innocent spouse determination may affect the equitable apportionment of marital debt. ¶19 Section 40-4-202(1), MCA, requires the court to “equitably apportion between the parties the property and assets belonging to either or both, however and whenever acquired and whether the title to the property and assets is in the name of the husband or wife or both.” The statute therefore requires the court to apportion marital property equitably “regardless of how or when it was acquired.” In re Marriage of Funk, 2012 MT 14, ¶ 13, 363 Mont. 352, 270 P.3d 39. Because the court must consider marital debt in dividing the marital estate under § 40-4-202(1), MCA, it follows that the court also apportions marital debt equitably, and may do so regardless of which party is responsible for it. Crowley, ¶¶ 28, 34; Scoffield, 258 Mont. at 342, 852 P.2d at 667 (concluding that “the medical debts incurred by [Wife] on behalf of her children during the course of the parties’ marriage are marital debts”). ¶20 Accordingly, we conclude that so long as the delinquent tax debt was incurred during the marriage, an innocent spouse determination by the IRS or the Department does not preclude a district court from equitably apportioning the delinquent tax debt to an “innocent spouse” under § 40-4-202(1), MCA. Other jurisdictions agree with this conclusion. Dobson, 159 S.W.3d at 337 (concluding that the trial court did not abuse its discretion in apportioning delinquent tax liability to an “innocent spouse” in part because the “[innocent spouse] did not present evidence that the money the family had as a result of the underpayment of taxes was not spent on family expenses”); In re Marriage of Hargrave, 36 Cal. App. 4th at 1320-21 (upholding the trial court’s apportionment of delinquent tax liability and concluding that an innocent spouse determination does not preempt state law efforts to impose liability for federal income taxes in a dissolution proceeding). ¶21 Contrary to Sherri’s assertions, the District Court did not find that Sherri “substantially benefitted” from the understatement; that is, the court did not find that Sherri received “any benefit in excess of normal support.” 26 C.F.R. § 1.6015-2(d). The court simply found that “the tax liabilities are joint marital obligations because the parties put the money into living expenses or the Teton Avenue home.” The court “recognize[d], and attempted] to compensate for,” the fact that, as Sherri testified, the income that created the tax liability contributed to the marriage. Bartsch II, ¶ 20. As such, this finding is in line with the court’s “broad discretion to apportion the marital estate in a manner equitable to each party under the circumstances.” Bartsch II, ¶ 9 (citations omitted). The District Court therefore did not abuse its discretion in apportioning the delinquent tax liability equally between the parties. ¶22 We are not persuaded by Sherri’s contention that the District Court’s departure from the taxing authorities’ findings was not explained sufficiently to withstand review for clear error. Because “[flindings of fact inform the court of appeals of the basis of the judgment,” they must be “sufficiently comprehensive and pertinent to the issues to provide a basis for decision, and the evidence presented must support them.” Bartsch II, ¶ 33 (citation omitted). Therefore, in order for a district court’s findings to be adequate, they “must be complete at least to the point that this Court need not succumb to speculation when assessing the conscientiousness or reasonableness of the district court’s judgment.” Bartsch II, ¶ 33 (citation omitted). ¶23 Here, the District Court was presented with very little evidence regarding Sherri’s status as an “innocent spouse.” Sherri presented no documentation from the IRS or the Department pertaining to the innocent spouse determination. Sherri did not cite the trial court to the statutes and regulations that she has identified in her briefing to this Court. Furthermore, Sherri’s own proposed findings of fact and conclusions of law do not address the innocent spouse determination. Although Sherri did testify at the dissolution proceeding that both the IRS and the Department had determined her to be an “innocent spouse,” there was very little testimony regarding what that determination entails. During his cross-examination of Michael, Sherri’s counsel stated that there “are legal definitions” regarding an innocent spouse determination. Counsel then stated: In order for the taxman to call someone an innocent spouse and use that special and very limited exception. There’s very specific rules. I know you may not know them. The Court may well know them, and they’re certainly in the law, and I recognize you may not know the tax law, but I didn’t know whether or not you knew that, but I take it from your answer that you did not, correct? The extent of counsel’s discussion of these “very specific rules” during the proceeding was to state that “at least by my understanding of these rules, is that she didn’t know of any of [the tax liability] and that she didn’t benefit from any of [the income that created the tax liability].” On cross-examination, however, Sherri testified that she was aware that the couple incurred income tax debt during the marriage and that “I did benefit [from the income that created that debt], but I won [innocent spouse relief].” ¶24 Based on this limited evidence, the District Court found that even though the IRS was not going to pursue the tax liability against Sherri, “the tax liabilities are joint marital obligations because the parties put the money into living expenses or the Teton Avenue home.” The court’s finding is “sufficiently comprehensive and pertinent to the issues to provide a basis for decision” in light of the limited evidence presented by Sherri regarding her innocent spouse relief. Bartsch II, ¶ 33. Moreover, Sherri’s own testimony supports the court’s finding that the delinquent tax liability was a joint marital obligation. Although the court’s finding is brief, it does not require us to engage in speculation in “assessing the conscientiousness or reasonableness of the district court’s judgment” because it provides a “basis upon which to review whether” the District Court equitably apportioned the marital estate, as required by § 40-4-202(1), MCA. Bartsch II, ¶¶ 33-34. ¶25 There is substantial evidence in the record to support the District Court’s finding that Michael’s income that created the tax liability was used for marital purposes. The court considered Sherri’s status as an “innocent spouse” and was within its discretion to conclude that this determination did not affect equitable apportionment of the delinquent tax liability. We decline to reverse the District Court’s findings as inadequate. CONCLUSION ¶26 The District Court was not bound by the taxing authorities’ determinations that they would not collect delinquent taxes from Sherri. The court did not err in considering the tax liability as marital debt or by including that debt in apportioning the marital estate. Its judgment is affirmed. CHIEF JUSTICE McGRATH, JUSTICES COTTER, McKINNON, WHEAT, SHEA and RICE concur. In her reply brief on appeal, Sherri requests that we take judicial notice of documentation from the IRS and the Department regarding her innocent spouse relief, which she has appended to her reply brief. “We generally do not take judicial notice of evidence not presented to the district court.” Cruson v. Missoula Elec. Coop., Inc., 2015 MT 309, ¶ 30, 381 Mont. 304, 359 P.3d 98. This rule is particularly apropos here, where we are reviewing whether the District Court’s findings of fact are adequate in light of the record before it.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Interstate Explorations, LLC (Interstate), leases mineral rights beneath the surface estate of Morgen Farm and Ranch, Inc. (Morgen). Interstate filed this action against Morgen in the District Court of the Seventh Judicial District, Wibaux County, requesting a declaration that Morgen had wrongfully denied an easement necessary for installing a power line to operate the well drilled by Interstate on the property. Morgerf answered and counterclaimed regarding alleged hydrocarbon spills on the property, requesting damages. Asserting that Morgen had failed to first exhaust administrative remedies before initiating legal action for damages, Interstate moved to dismiss Morgen’s counterclaims for lack of subject matter jurisdiction, which the District Court denied. Interstate appeals. We affirm and state the issue as follows: ¶2 Did the District Court err by denying Interstate’s motion to dismiss Morgen’s counterclaims for lack of subject matter jurisdiction because Morgen did not first exhaust statutory remedies? PROCEDURAL AND FACTUAL BACKGROUND ¶3 Morgen leased oil and gas rights on a portion of its property to Montana Oil Properties, Inc. Morgen owns the surface rights to the property. Montana Oil Properties later assigned its interest in the lease to Interstate, who drilled and completed a well on the Morgen property. ¶4 In July 2014, Interstate initiated this lawsuit, alleging that Morgen “has refused to execute the easement for [Montana-Dakota Utilities Co.] to enter the property to hook up the electrical line necessary to operate the well.” Interstate requested a judgment declaring Interstate’s interests and rights in the property, and also requested damages for the “increase in expenses ... incurred by having to use a generator” to maintain the well on the site. ¶5 Morgen answered by denying that an easement was necessary because Interstate had the right to run power to the well by virtue of the lease, but counterclaiming that Interstate had damaged the surface of the property by spilling hydrocarbons. Morgen alleged that the damage had not been remedied by compensation and that Interstate was wrongfully entering and remaining on the property until the damage was paid, stating claims for trespass, unjust enrichment, and wrongful occupation. Interstate moved to dismiss Morgen’s counterclaims for lack of subject matter jurisdiction, which the District Court denied. Interstate again raises the issue of subject matter jurisdiction on appeal. STANDARD OF REVIEW ¶6 “A district court’s decision to grant or deny a motion to dismiss for lack of subject matter jurisdiction is a question of law that we review for correctness.” Pickett v. Cortese, 2014 MT 166, ¶ 11, 375 Mont. 320, 328 P.3d 660 (citing Ballas v. Missoula City Bd. of Adjustment, 2007 MT 299, ¶ 9, 340 Mont. 56, 172 P.3d 1232). “[A] district court’s conclusion as to its jurisdiction is always subject to de novo review, regardless of the context in which the conclusion is made.” Lorang v. Fortis Ins. Co., 2008 MT 252, ¶ 53, n. 5, 345 Mont. 12, 192 P.3d 186 (citing Stanley v. Lemire, 2006 MT 304, 334 Mont. 489, 148 P.3d 643). DISCUSSION ¶7 Did the District Court err by denying Interstate’s motion to dismiss Morgen’s counterclaims for lack of subject matter jurisdiction because Morgen did not first exhaust statutory remedies? ¶8 The District Court explained that, pursuant to the provisions governing Surface Owner Damage and Disruption Compensation, §§ 82-10-501, et seq., MCA (referred to herein as the “Surface Damage Act” or “Act”), oil and gas developers and operators are responsible for damages sustained by the surface owner caused by oil and gas operations. Sections 82-10-504, 505, MCA. However, citing §§ 82-10-508 and 82-11-142(2), MCA, the District Court reasoned that the Act was not the exclusive remedy for surface damage claims, and that surface owners were entitled to seek other remedies permitted by law. Therefore, the court concluded it had subject matter jurisdiction over Morgen’s claims. ¶9 Interstate argues that the District Court erred by not holding that Morgen’s failure to exhaust administrative remedies set forth in Title 82, chapter 10, MCA, addressing surface damage compensation, deprived the District Court of subject matter jurisdiction to entertain Morgen’s counterclaims seeking damages. Noting that § 82-11-141(1), MCA, provides that “the Montana Administrative Procedure Act (MAPA) applies to this chapter,” Interstate argues that § 2-4-702(l)(a), MCA, MAPA’s administrative exhaustion provision, requires that Morgen’s surface damage claims first be pursued before the Montana Board of Oil and Gas Conservation (Board). ¶10 “To determine whether or not [a party] must exhaust administrative remedies, we look first to the statutory language, and where that is unclear, to legislative intent.” Stanley v. Holms, 267 Mont. 316, 320, 883 P.2d 837, 839 (1994) (citation omitted) (considering whether administrative remedies within the Commissioner of Labor and Industry divested district courts of subject matter jurisdiction over statutory wage claims). This case is resolved by a careful review of the language and structure of the governing statutes. ¶11 The parties’ arguments involve two chapters. Chapter 10 of Title 82 of the Montana Code Annotated governs oil and gas issues generally and includes the provisions of the Surface Damage Act in Part 5. Part 5 provides for notification to the surface owner of planned drilling operations, notification to the oil or gas operator of any surface damage, and a process of exchanging offers of settlement to resolve damages issues. Sections 82-10-501, et seq., MCA. Then, Chapter 11 of Title 82 governs oil and gas conservation and Part 1 thereof includes the extensive provisions entitled “Regulation by Board of Oil and Gas Conservation.” Sections 82-11-101, et seq., MCA. ¶12 Notably, the Surface Damage Act, in Chapter 10, is not structured under the regulatory powers of the Board set forth in Chapter 11. Further, the Board is not expressly given any role within the damage resolution provisions of the Act, and, indeed, is not even referenced by the Act. While § 82-10-510, MCA, adopts the penalty provision of Chapter 11 for violation of “the notice requirements of § 82-10-503” by an oil and gas operator, see Pinnacle Gas Res., Inc. v. Diamond Cross Properties, LLC, 2009 MT 12, ¶ 28, 349 Mont. 17, 201 P.3d 160, the Act gives the Board no other duty in the damage resolution process. The Board’s lack of involvement with the process under Chapter 10 was confirmed during the 2007 Legislative Session, when Senate Bill 19 was passed to make a minor revision to the Act. During a hearing before the Senate Natural Resources Committee, the following exchange occurred between Senator Greg Lind and Tom Richmond, administrator of the Board: Senator Lind: ‘Under [] existing law, how often under § 82-10-505, liability and damages, can you give me an idea of the magnitude of the activity, does that come through your office? Are you aware of those actions and disputes?’ Tom Richmond: ‘Mr. Chairman, we typically are not. We don’t have direct enforcement and rule-making authority under Chapter 10. Our enforcement is under Chapter 11, that’s why you’ll see the penalty section referring to the penalties in Section [sic] 11, because there are no penalties in Section [sic] 10. That was one of the rabbit holes we went down, trying to figure out what to do about penalties. We decided to best defer to existing law.’ Mont. S. Comm, on Natural Res., Hearing on S. Bill 19, 60th Legis., Reg. Sess. (Jan. 15, 2007). ¶13 Thus, consistent with the plain language of the Act, the Board assumes no direct enforcement or rule-making authority under Chapter 10 regarding the dispute resolution process. Rather, the Act is an attempt to facilitate communication between surface owners and oil and gas operators to help resolve damage disputes. As such, while a statutory process has been enacted, it is not an agency or administrative proceeding that must be exhausted before litigation may be commenced. ¶14 Even if the process created by the Act were considered to be an administrative process, the Act specifically provides that the process is not an exclusive one. Section 82-10-511, MCA, states that “[t]he remedies provided by this part do not preclude any person from seeking other remedies allowed by law.” Thus, by statute, the process is not mandatory and need not be completed prior to initiation of litigation. While we need not cite legislative history in light of the statute’s clear language, that history also demonstrates that the Legislature did not intend this process to be exclusive. ¶15 Interstate’s MAPA argument is likewise unavailing. Section 82-11-141(1), MCA, provides that MAPA is applicable “to this chapter” — meaning Chapter 11, the Board’s enforcement powers, and not Chapter 10, which includes the Surface Damage Act. ¶16 The District Court correctly held that a surface owner is not required to exhaust an administrative remedy under the Surface Damage Act before litigating a damage claim in the courts, and correctly denied Interstate’s motion to dismiss Morgen’s counterclaims on this basis. ¶17 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES WHEAT, McKINNON and SHEA concur. SB 19 added the following language to § 82-10-504(l)(a), MCA: “The surface owner and the oil and gas developer or operator shall attempt to negotiate an agreement on damages.” Sec. 3, Ch. 57, L. 2007.
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JUSTICE BAKER delivered the Opinion of the Court. ¶ 1 The State of Montana (State) appeals an order of the First Judicial District Court, Lewis and Clark County, granting a permanent injunction against the enforcement of certain provisions of the 2011 Montana Marijuana Act §§ 50-46-301 to -344, MCA (Act). Montana Cannabis Industry Association, Mark Matthews, Shelly Yeager, Jesse Rumble, John Stowers, M.D., Point Hatfield, and Charlie Hamp (collectively “Plaintiffs”) cross-appeal the District Court’s refusal to enjoin other provisions of the Act. We address the following issues on appeal: 1. Whether the District Court erred in determining that the Act’s provision requiring the Department of Public Health and Human Services (Department) to notify the Board of Medical Examiners of any physician who certifies 25 or more patients in a year for medical marijuana (§ 50-46-303(10), MCA) fails rational basis review. 2. Whether the District Court erred in determining that the Act’s commercial prohibitions (§§ 50-46-308(3), (4), (6)(a),(b), MCA) fail rational basis review. 3. Whether the District Court erred in applying strict scrutiny review to the Act’s provision prohibiting advertising by providers of medical marijuana (§ 50-46-341, MCA), thereby concluding that the provision unconstitutionally infringes free speech. 4. Whether the District Court erred in determining that the Act’s provision prohibiting probationers from becoming registered cardholders for medical marijuana use (§ 50-46-307(4), MCA) withstands a facial challenge under rational basis scrutiny. 5. Whether the District Court erred in determining that the Act’s provision allowing warrantless inspections of medical marijuana providers’ businesses by the Department and law enforcement agencies (§ 50-46-329, MCA) comports with the U.S. and Montana Constitutions’ guarantees against unreasonable searches. ¶2 We affirm in part and reverse in part. PROCEDURAL AND FACTUAL BACKGROUND ¶3 This is the State’s second appeal from the First Judicial District Court’s injunctions preventing implementation of certain provisions of the Act. Montana Cannabis Industry Association v. State, 2012 MT 201, 366 Mont. 224, 286 P.3d 1161 (hereafter MCIA I). The Act repealed the 2004 Medical Marijuana Act (2004 Act) — which was established by voter initiative (1-148) — and replaced it with a new statutory framework. The Act contains multiple provisions that limit both the eligibility of patients to qualify for its protections and the activities of medical professionals and providers of marijuana for medical purposes. ¶4 In the first case, the District Court preliminarily enjoined several of the Act’s provisions, including: its ban on the commercial sale of medical marijuana; its ban on provider advertising; its authorization of warrantless inspections; and the 25-patient physician review trigger. In its first order, the court reasoned that those provisions implicated Plaintiffs’ fundamental constitutional rights, triggering strict scrutiny analysis. The State agreed to a preliminary injunction against several of the challenged provisions pending consideration of the constitutional merits, but appealed the injunction against the commercial ban on the ground that the District Court erred in applying strict scrutiny analysis to the provisions in the absence of an infringement on fundamental rights. ¶5 In MCIA I, we determined that the commercial ban did not implicate the fundamental rights to employment, to health, or to privacy, and that Plaintiffs had no fundamental right to medical marijuana. Accordingly, we reversed and remanded the case to the District Court to apply rational basis scrutiny. MCIA I, ¶ 35. ¶6 Following remand, Plaintiffs moved the District Court for a Temporary Restraining Order, Preliminary Injunction and Order to Show Cause. On October 26, 2012, the District Court granted a Temporary Restraining Order and set a Preliminary Injunction Hearing. At that hearing, Plaintiffs presented testimony from several witnesses to support their contention that many medical marijuana users and providers would suffer irreparable harm if certain provisions of the Act did not remain preliminarily enjoined. Several witnesses who suffered from debilitating medical conditions testified that they had very negative experiences with prescription drugs and that medical marijuana was the only treatment that provided them effective relief from their conditions. Providers of medical marijuana testified that without the injunction, it would not be feasible for them to continue their medical marijuana businesses. ¶7 The State urged the District Court to deny the preliminary injunction and to extend the temporary restraining order for a period to allow the Legislature to consider further amendments to the Act. To support its argument, the State referenced several abuses that occurred under the 2004 Act and that were discussed during the June 2011 preliminary injunction hearing. The State referenced telemedicine (the practice of some physicians to certify patients without ever actually seeing the patient), traveling caravans, and a disproportionate number of medical marijuana users in the “chronic pain category” who falsified or exaggerated their need for medical marijuana. The State also emphasized that one-third of medical marijuana users were growing their own supply at that time. ¶8 Following the hearing, on January 16, 2013, the court issued an order maintaining its preliminary injunction against the Act’s commercial prohibitions. The court concluded that “[pjroperly registered and eligible cardholders will be injured or irreparably harmed if the Court does not preserve the status quo ... [because] cardholders will be unable to grow their own medical marijuana or will be unable to obtain it from a provider.” Thereafter, the parties filed cross-motions for summary judgment. The District Court heard oral argument on the summary judgment motions on April 15, 2014. ¶9 On January 6, 2015, the District Court issued a Corrected Order on Motions for Summary Judgment. In its decision, the court reviewed the commercial ban and the 25-patient review trigger for a rational basis, and concluded that both provisions were invalid. The court applied strict scrutiny to the advertising prohibition, and enjoined it on the basis that the prohibition impermissibly restricted content-based political and educational speech. The District Court declined to enjoin the warrantless inspection provision and the ban on access to medical marijuana by probationers. The court entered its final judgment on January 8, 2015. ¶10 The State appeals the injunctions against the commercial ban, the 25-patient physician review trigger, and the advertising ban. Plaintiffs cross-appeal the District Court’s decision to uphold the warrantless inspection provision and the ban on probationer use. This Court heard oral argument on November 4, 2015. STANDARDS OF REVIEW ¶11 We review summary judgment rulings de novo, applying the criteria set forth in M. R. Civ. P. 56. Walters v. Flathead Concrete Prods., 2011 MT 45, ¶ 8, 359 Mont. 346, 249 P.3d 913. Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Walters, ¶ 8. If there are no genuine issues of material fact, we review for correctness a district court’s conclusion that the moving party is entitled to judgment as a matter of law. Zinvest, LLC v. Hudgins, 2014 MT 201, ¶ 11, 376 Mont. 72, 330 P.3d 1135. ¶12 This Court exercises plenary review of constitutional issues. Big Sky Colony, Inc. v. Mont. Dep’t of Labor and Indus., 2012 MT 320, ¶ 16, 368 Mont. 66, 291 P.3d 1231 (citation omitted). The constitutionality of a statute is presumed, “unless it conflicts with the constitution, in the judgment of the court, beyond a reasonable doubt.” Powell v. State Comp. Fund., 2000 MT 321, ¶ 13, 302 Mont. 518, 15 P.3d 877. If any doubt exists, it must be resolved in favor of the statute. Powell, ¶ 13. The party challenging the constitutionality of a statute bears the burden of proof. Big Sky Colony, ¶ 16. DISCUSSION ¶13 We begin by acknowledging the proverbial “elephant in the room.” Marijuana is a Schedule I Controlled Substance under the federal Controlled Substances Act, 21 U.S.C. § 812, under whichits cultivation and distribution are illegal. 21 U.S.C. §§ 841(a)(1), 844(a). In this case, no challenge is brought to the Act on the ground that it is preempted by federal law, U.S. Const. art. VI, cl. 2, and the State expressly disclaimed such a challenge during oral argument. In the face of action in numerous states to legalize marijuana for medical or even recreational purposes, the United States Department of Justice has issued guidance (discussed below) concerning enforcement priorities in an apparent effort to minimize conflict with state actions while maintaining the primacy of federal law. The Act is the Montana Legislature’s attempt to navigate shifting public policy toward marijuana in the absence of Congressional action to resolve state and federal differences. We are not called upon in this case to review the broad question of Montana’s authority to act on the subject of medical marijuana. Rather, we address only the question whether, having taken action on the subject, the Legislature’s means of addressing this conflict are permissible under defined standards of constitutional analysis. ¶14 Plaintiffs allege denial of equal protection and due process rights under article II, sections 4 and 17 of the Montana Constitution. Plaintiffs bring their constitutional claims as facial challenges to certain statutes within the Act. Analysis of a facial challenge to a statute differs from that of an as-applied challenge. See e.g., State v. Whalen, 2013 MT 26, ¶¶ 20-22, 368 Mont. 354, 295 P.3d 105. In order to prevail on their facial challenges, Plaintiffs must show that “no set of circumstances exists under which the [challenged sections] would be valid, i.e., that the law is unconstitutional in all of its applications.” Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442, 449, 128 S. Ct. 1184, 1190 (2008) (citing United States v. Salerno, 481 U.S. 739, 745, 107 S. Ct. 2095, 2100 (1987)). See also In re Marriage of K.E.V., 267 Mont. 323, 336, 883 P.2d 1246, 1255 (1994) (Trieweiler, J., concurring and dissenting) (citation and internal quotation marks omitted) (noting that “a facial challenge to a legislative act is of course the most difficult challenge to mount successfully, since the challenger must establish that no circumstances exist under which the act would be valid”). Equal Protection ¶15 The principal purpose of the Montana Constitution’s Equal Protection Clause, art. II, § 4, is to ensure that Montana’s citizens are not subject to arbitrary and discriminatory state action. Powell, ¶ 16. When presented with an equal protection challenge, “we first identify the classes involved and determine whether they are similarly situated.” Rohlfs v. Klemenhagen, LLC, 2009 MT 440, ¶ 23, 354 Mont. 133, 227 P.3d 42. If we determine that the challenged statute creates classes of similarly situated persons, we next decide whether the law treats the classes in an unequal manner. Caldwell v. MACo Worker’s Comp. Trust, 2011 MT 162, ¶ 16, 361 Mont. 140, 256 P.3d 923. Thus, to state a meritorious equal protection claim, Plaintiffs must demonstrate that “the state has adopted a classification that affects two or more similarly situated groups in an unequal manner.” Bustell v. AIG Claims Serv. Inc., 2004 MT 362, ¶ 20, 324 Mont. 478, 105 P.3d 286 (citing Powell, ¶ 22). ¶16 A law may create a classification even if the classification is not expressed “on the face” of the statute. State v. Spina, 1999 MT 113, ¶ 85, 294 Mont. 367, 982 P.2d 421 (citing John E. Nowak, et al., Constitutional Law , 600 (2d ed. 1983)). “[A] law may contain no classification, or a neutral classification, and be applied evenhandedly. Nevertheless the law may be challenged as in reality constituting a device designed to impose different burdens on different classes of persons.” Spina, ¶ 85 (citing Nowak, supra, at 600). Plaintiffs argue that the Act creates different classifications: 1. The class of persons with debilitating medical conditions: (a) some of whom have conditions for which marijuana is the single most effective medical treatment; (b) others who effectively may be treated with other pharmaceutical drugs. 2. Among those who are solely or optimally treated with marijuana: (a) those who have the physical ability and the means, including suitable space, to grow their own; (b) those who do not. The District Court concluded that the Act “do[es] impose different burdens on different classes of persons as described by [Plaintiffs] and, therefore, do[es] create a classification.” ¶17 We concluded in Caldwell that a statute denying rehabilitation benefits to workers’ compensation claimants based on a claimant’s age-based eligibility for social security benefits created two classes of similarly-situated claimants because it distinguished by age between workers who had similar work-related injuries. Caldwell, ¶ 18. The statutes at issue here concern a group of persons who all suffer from a debilitating medical condition but are distinguished by the manner in which they may obtain relief. Some may be treated effectively with pharmaceutical drugs; for others, marijuana is the sole or most effective treatment. The identifying factor that distinguishes them is the method of treatment. As we recognized in MCIA I, the Act regulates a person’s right to a particular treatment for his or her medical condition. MCIA I, ¶ 24. We observed in Caldwell that whether the challenged statute creates a discriminatory classification is informed by the statute’s purpose. Caldwell, ¶ 19. In Caldwell, as in Reesor v. Montana State Fund , 2004 MT 370, 325 Mont. 1, 103 P.3d 1019, age was “the only identifiable distinguishing factor between the two classes;” we concluded in both cases that age was “unrelated to a person’s ability to engage in meaningful employment.” Caldwell, ¶ 19; Reesor, ¶ 12. In contrast, we concluded in Wilkes v. Montana State Fund, 2008 MT 29, 341 Mont. 292, 177 P.3d 483, that where “actual wages” was the single distinguishing factor between workers’ compensation claimants, that was a “fundamental distinction” between the two classes sufficient to defeat similarity for purposes of the plaintiffs equal protection claim. Wilkes, ¶ 20. We reasoned that one stated purpose of the Workers’ Compensation Act was that “the wage-loss benefit should bear a reasonable relationship to actual wages lost as a result of work-related injury or disease.” Wilkes, ¶ 26 (internal quotation marks omitted) (quoting § 39-71-105(1), MCA). ¶18 The reasoning in Wilkes applies here. One stated purpose of the Act is to “provide legal protections to persons with debilitating medical conditions who engage in the use of marijuana to alleviate the symptoms of the debilitating medical condition.” Section 50-46-301(2)(a), MCA. There is no need for the Legislature to provide legal protections to persons using prescribed pharmaceutical medication. “The distinguishing factor between the two classes, [their use of medical marijuana], plainly relates to the underlying justification of the statute.” Wilkes, ¶ 20. We conclude that the distinctions in regulation of different substances for medical treatment does not create two legitimate classes for an equal protection challenge because the single identifying factor — use of a substance prohibited by federal law — is a fundamental difference that sufficiently distinguishes the two classes to render them dissimilar. Substantive Due Process ¶19 Although there is considerable overlap between an equal protection analysis and a substantive due process analysis, “each Clause triggers a distinct inquiry.” Evitts v. Lucey, 469 U.S. 387, 405, 105 S. Ct. 830, 841 (1985). Equal protection “emphasizes disparity in treatment by a State between classes of individuals whose situations are arguably indistinguishable,” while due process “emphasizes fairness between the State and the individual dealing with the State, regardless of how other individuals in the same situation may be treated.” Evitts, 469 U.S. at 405, 105 S. Ct. at 841 (quoting Ross v. Moffitt, 417 U.S. 600, 609, 94 S. Ct. 2437, 2443 (1974)). “For example, if a state prohibited all persons from purchasing or using a certain drug or medicine, a challenge to that law would be based on substantive due process.” 2 Ronald D. Rotunda & John E. Nowak, Treatise on Constitutional Law: Substance and Procedure § 15.4(a) at 824 (5th ed. 2012). Because Plaintiffs essentially claim that the Act’s regulation of marijuana for medical purposes “restrict[s] the freedom of all persons in society without a constitutionally legitimate justification,” their challenges appropriately are analyzed under the due process clause, Montana Constitution Article II, Section 17. Rotunda & Nowak, supra, at 824. ¶20 Substantive due process also reflects a principle distinct from that protected by procedural due process: If an individual asserts that the government must provide him with some type of procedural safeguards before the government takes an interest from him, he must demonstrate that the interest constitutes life, liberty, or property.... There is no need to define life, property or liberty for substantive due process analysis.... All laws might be said to restrict [an] individual’s use of property rights or personal liberty, in the sense of restricting which actions the individual can take in society. Laws regulating property or liberty that do not restrict the exercise of a fundamental right should be upheld unless the person attacking the law can overcome the presumption of constitutionality and demonstrate that the law is not rationally related to a legitimate interest. Rotunda & Nowak, supra, § 15.5 at 847-48. ¶21 This Court analyzes substantive due process in the same fashion. Where a fundamental right is not implicated, “[s]ubstantive due process analysis requires a test of the reasonableness of a statute in relation to the State’s power to enact legislation.” Satterlee v. Lumberman’s Mut. Cas. Co., 2009 MT 368, ¶ 33, 353 Mont. 265, 222 P.3d 566 (internal quotation marks omitted) (quoting Powell, ¶ 29). “Since the State cannot use its power to take an unreasonable, arbitrary or capricious action against an individual, a statute enacted by the legislature must be reasonably related to a permissible legislative objective in order to satisfy guarantees of substantive due process.” Satterlee, ¶ 33 (internal quotation marks omitted) (quoting Powell, ¶ 29). See Newville v. State Dep’t of Family Servs., 267 Mont. 237, 249, 883 P.2d 793, 800 (1994). We analyze substantive due process claims by examining (1) whether the legislation in question is related to a legitimate governmental concern, and (2) whether the means chosen by the Legislature to accomplish its objective are reasonably related to the result sought to be attained. Walters, ¶ 18. ¶22 In determining whether the statute’s objective is legitimate, we examine the legislation’s purpose, whether expressly stated or otherwise. Satterlee, ¶¶ 34, 37 (examining the purpose of worker’s compensation laws to determine whether they serve a permissible legislative objective); Goble v. Mont. State Fund, 2014 MT 99, ¶ 41, 374 Mont. 453, 325 P.3d 1211 (examining the stated policy provisions of the worker’s compensation system to determine whether it serves a legitimate governmental interest). The legislation’s purpose “does not have to appear on the face of the legislation or in the legislative history, but may be any possible purpose of which the court can conceive.” Walters, ¶ 28 (internal quotation marks omitted) (quoting Satterlee, ¶ 34). See Kottel v. State, 2002 MT 278, ¶ 55, 312 Mont. 387, 60 P.3d 403. ¶23 In this case, we need not surmise possible purposes for the legislation because the Act makes explicit several purposes on its face. See Walters, ¶¶ 31-32; Goble, ¶ 41. Section 50-46-301, MCA, provides that the purposes of the Act are to: (a) provide legal protections to persons with debilitating medical conditions who engage in the use of marijuana to alleviate the symptoms of the debilitating medical condition; (b) allow for the limited cultivation, manufacture, delivery, and possession of marijuana as permitted by this part by persons who obtain registry identification cards; (c) allow individuals to assist a limited number of registered cardholders with the cultivation and manufacture of marijuana or marijuana-infused products; (d) establish reporting requirements for production of marijuana and marijuana-infused products and inspection requirements for premises; and (e) give local governments a role in establishing standards for the cultivation, manufacture, and use of marijuana that protect the public health, safety, and welfare of residents within their jurisdictions. Section 50-46-301(2), MCA. In addition, the legislative history demonstrates that the Act was enacted in response to the Legislature’s concern about a number of abuses that occurred following passage of the 2004 Act. As we noted in MCIA I, the 2011 Act was passed “in response to a drastic increase of caregivers and medical marijuana users.” MCIA I, ¶ 2. The goal of the Act, according to its sponsor, was “to repeal a system that is obviously broken, cleanse the system out, and then restore the laws of the State of Montana in a fashion that will recognize the intent of the Montana voters in 2004.” Hearing on SB 423 Before the S. Jud. Comm. 62nd Leg. Reg. Sess. 07:46-08:01 (Mont. 2011). ¶24 Plaintiffs argue that they produced evidence proving the Legislature’s premises to be unfounded. They maintain that the District Court’s ruling correctly parsed the Act and struck down provisions that were shown not to be needed to address the Act’s legitimate objectives, while leaving intact other provisions that more effectively accomplished the Act’s purposes. Citing Brewer v. Ski-Lift, 234 Mont. 109, 115, 762 P.2d 226, 230 (1988), superseded by statute on other grounds as stated in Kopekin v. Moonlight Basin Mgmt., LLC, 981 F. Supp. 2d 936, 941 (Mont. 2013), Plaintiffs argue that the District Court properly enjoined provisions of the Act that are “needlessly overbroad and go far beyond the stated purposes of the statute.” ¶25 Brewer, however, says nothing about consideration of post-enactment evidence to prove a statute’s basis irrational. In concluding that the statute at issue in that case lacked a rational basis, this Court relied on the absence of reasons in the legislation to impose a strict assumption of risk standard on skiers in contradiction to state comparative negligence statutes that applied to other inherently dangerous activities. Brewer, 234 Mont. at 115, 762 P.2d at 230-31. We applied well-established principles of constitutional analysis: “ ‘The courts must reach and determine the question whether the classifications drawn in a statute are reasonable in light of its purpose ....’ ” Brewer, 234 Mont. at 112, 762 P.2d at 229 (quoting Laurence H. Tribe, American Constitutional Law , 1440 (2d ed. 1988)). Likewise, Plaintiffs’ reliance on Conant v. Walters, 309 F.3d 629 (9th Cir. 2002), is misplaced because that case involved consideration of empirical evidence to support an injunction, not a facial challenge to the constitutionality of a statute. ¶26 As in Conant, the District Court properly considered the Plaintiffs’ evidence in the context of their motions for preliminary injunctive relief. Section 27-19-201, MCA; Citizens for Balanced Use v. Maurier, 2013 MT 166, ¶ 28, 370 Mont. 410, 303 P.3d 794 (noting that a district court must consider “the equities of all interests involved”). But in the context of the constitutional analysis of the Act, “[o]ur role is not to second guess the prudence of a legislative decision.” Satterlee, ¶ 34. As with all legislative compromises, the [Act] is not infallible and the legislative decisions made in adopting the [Act] are subject to honest debate. Nevertheless, once a statute has been duly approved by the legislative branch, this Court’s role is not one of second guessing the prudence of the conclusions reached. Satterlee, ¶ 37. Rational basis is the most deferential standard of review. See e.g., Bankers Life & Cas. Co. v. Crenshaw, 486 U.S. 71, 83, 108 S. Ct. 1645, 1653 (1988); Mass. Bd. of Ret. v. Murgia, 427 U.S. 307, 314, 96 S. Ct. 2562, 2567 (1976). Under the due process clause, “the law need not be in every respect logically consistent with its aims to be constitutional.” Williamson v. Lee Optical of Okla., Inc., 348 U.S. 483, 487-88, 75 S. Ct. 461, 464 (1955). In light of the Act’s stated purposes, unless Plaintiffs establish that the statutes are unreasonable or arbitrary, the Legislature’s judgment should not be disturbed. Walters, ¶ 18. ¶27 As we noted in Walters, it may be “easy to opine that the Legislature could have done better” in providing for available means of accessing treatment once it determined to authorize marijuana use for certain medical conditions; the law, however, “requires us to recognize that ‘such a debate involves issues and decisions about public policy that are clearly of the sort much better suited to the halls of the legislature.’ ” Walters, ¶ 33 (quoting Satterlee, ¶ 38). ¶28 We conclude that the Act’s purposes serve a legitimate state interest. The Legislature was highly cognizant of the fact that marijuana remains a Schedule I controlled substance, illegal for all purposes, under federal law. 21 U.S.C. §§ 812, 841, 845. The Legislature also took notice of the United States Attorney General’s direction to federal prosecutors that “[t]he prosecution of significant traffickers of illegal drugs, including marijuana, and the disruption of illegal drug manufacturing and trafficking networks continues to be a core priority in the Department’s efforts against narcotics and dangerous drugs ....” Memorandum from David W. Ogden, Deputy Attorney General, U.S. Dep’t of Justice, to Selected United States Attorneys, Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana 1 (Oct. 19, 2009). (hereafter “Ogden Memorandum”). The Attorney General issued a new directive in August 2013 that refined and stated more clearly the objectives of particular importance to the United States government. They include, among numerous others, “[plreventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; [and] [plreventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity.” Memorandum from James M. Cole, Deputy Attorney General, U.S. Dep’t of Justice, to All United States Attorneys, Guidance Regarding Marijuana Enforcemenfl-2 (Aug. 29,2013) (hereafter “Cole Memorandum”). While Plaintiffs emphasize that the Ogden and Cole Memoranda encourage federal prosecutors -to decline prosecution of state-regulated marijuana dispensaries in most circumstances, “it’s Congress that passes the laws, Congress that saw fit to enact 21 U.S.C. § 841, and Congress that in § 841 made the distribution of marijuana a federal crime.” Feinberg v. Comm’r of Internal Revenue, 808 F.3d 813, 816 (10th Cir. 2015). As such, there is no basis for concluding that informal agency memoranda alter the U.S. government’s authority to enforce federal law. Moreover, “[t]here’s always the possibility, too, that the next (or even the current) Deputy Attorney General could displace th[o]se memoranda at anytime.” Feinberg, 808 F.3d at 816. After this case was argued, Plaintiffs called the Court’s attention to a recent Congressional Appropriations Act that prohibits the Justice Department from spending funds that would prevent states — including Montana — from implementing their own laws authorizing the use, distribution, possession, or cultivation of medical marijuana. Consolidated Appropriations Act, 2016, Pub. L. 114-113, § 542 Div. B, tit. V, 223 (2015). We take judicial notice of this action pursuant to M. R. Evid. 202(b). While the measure does evince developing attitudes in Congress, the substantive criminal prohibitions in federal law remain intact. ¶29 The Legislature is presumed to be cognizant of guiding constitutional principles, under which federal law “shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const. art. VI, cl. 2. The Legislature sought to resolve prior abuses and to avoid entanglement with federal law while continuing to “provide legal protections” to qualified persons who engage in the medical use of marijuana, and to “allow individuals to assist a limited number” of qualified persons in obtaining marijuana or marijuana-infused products. Section 50-46-301(2)(a), (c), MCA. The careful regulation of access to an otherwise illegal substance for limited use by persons for whom there is little or no other effective alternative serves a legitimate state objective. ¶30 Having determined that the Act serves a legitimate objective, we proceed to consider whether the statutes are reasonably related to achieving that objective. Powell, ¶ 29. A statute that is unreasonable, arbitrary, or capricious and bears no reasonable relationship to a permissible government interest offends due process. Goble, ¶ 40. In contrast, a statute that is neither unreasonable nor arbitrary “when balanced against the purpose of the legislature in enacting the statute” does not offend due process. State v. Egdorf, 2003 MT 264, ¶ 19, 317 Mont. 436, 77 P.3d 517. This deferential standard demonstrates the Court’s recognition that we “have only the power to destroy, not to reconstruct.” Stratemeyer v. Lincoln Cnty., 259 Mont. 147, 153, 855 P.2d 506, 510 (1993) (internal quotation and citation omitted). ¶31 In economic regulation cases, there are “good reasons for judicial self-restraint if not judicial deference to legislative judgment.” Stratemeyer, 259 Mont. at 152-53, 855 P.2d at 510 (internal quotation marks and citation omitted). “The legislature is simply in a better position to develop the direction of economic regulation ....” Stratemeyer, 259 Mont. at 153, 855 P.2d at 510. Because of this, we are “to assume that the Legislature was in a position and had the power to pass upon the wisdom of the enactment.” Rohlfs, ¶ 31. “[W]e cannot strike down [a statute] as a violation of substantive due process simply because we may not agree with the legislature’s policy decisions.” Satterlee, ¶ 34. “What a court may think as to the wisdom or expediency of the legislation is beside the question and does not go to the constitutionality of a statute.” Rohlfs, ¶ 31. Moreover, even if a court believes that statutes aimed at achieving the State’s interest could have been implemented “with greater precision,” those statutes likely still will withstand rational basis review because “rational distinctions may be made with substantially less than mathematical exactitude.” Ward v. Johnson, 2012 MT 96, ¶ 23, 365 Mont. 19, 277 P.3d 1216 (internal quotation marks omitted) (citing Burlington N. Ry. v. Ford, 504 U.S. 648, 653, 112 S. Ct. 2184, 2187 (1992) (quoting New Orleans v. Dukes, 427 U.S. 297, 303, 96 S. Ct. 2513, 2517 (1976))). ¶32 This restraint on judicial interference with legislative policy judgments has added significance here, because the Legislature took the unusual step in the Act of imposing upon itself an obligation to continue examination of the issue and further consideration of changes in light of the evolving nature of the issue. Section 50-46-343, MCA, provides: [t]he children, families, health, and human services interim committee shall provide oversight of the department’s activities related to registering individuals pursuant to [the Act] and of issues related to the cultivation, manufacture, and use of marijuana.... The committee shall identify issues likely to require future legislative attention and develop legislation to present to the next regular session of the legislature. ¶33 We turn now to the application of the foregoing standards to the specific statutes at issue to determine whether they are “arbitrary or unreasonable,” or whether they instead are “rationally related to the recognized legitimate government objectives of the Act.” Walters, ¶ 34. ¶34 1. Whether the District Court erred in determining that the Act’s provision requiring the Department to notify the Board of Medical Examiners of any physician who certifies 25 or more patients in a year for medical marijuana (§ 50-46-303(10), MCA) fails rational basis review. ¶35 Under § 50:46-303(10)(a), MCA, the Department “shall provide the board of medical examiners with the name of any physician who provides written certification for 25 or more patients within a 12-month period. The board of medical examiners shall review the physician’s practices in order to determine whether the practices meet the standard of care.” Section 50-46-303(10)(b), MCA, requires that, “[t]he physician whose practices are under review shall pay the costs of the board’s review activities.” The District Court preliminarily enjoined these provisions on stipulation of the parties; the State withdrew from that stipulation following MCIAI. ¶36 The District Court concluded that the 25-patient review trigger was not rationally related to the Act’s goals. The court relied in part on testimony from Ian Marquand, who appeared on behalf of the State Board of Medical Examiners. Marquand testified that there had been almost no reported problems with medical marijuana certifications following a standard of care directive issued by the Board in 2010 that disallowed certification exclusively by telemedicine. The court also relied on testimony from Roy Kemp, administrator of the Department’s medical marijuana registry program, who testified that “he knew of no rationale justifying the 25-patient limit.” Marquand’s and Kemp’s testimony, coupled with “the fact that this provision has never been in effect,” led the District Court to conclude that the 25-patient review trigger “is not rationally related — indeed not necessary at all — to the goals of the medical marijuana laws.” ¶37 The State argues that the District Court erred in its application of rational basis standards because it considered circumstances regarding the lack of problems with medical marijuana certifications following entry of the first preliminary injunction. The State contends that the court instead should have considered the “flagrant abuses” that were occurring in 2011, when the Legislature passed the Act. The State references testimony before a legislative conference committee to argue that the Legislature “realized that the abuse of the ‘chronic pain’ category was best controlled by increasing physician accountability.” The State also emphasizes the testimony of Dr. Stowers, one of the named plaintiffs, in the June 2011 preliminary injunction hearing. The State contends that Dr. Stowers acknowledged “serious problems with doctor recommendations under the old law.” The State asserts that the 25-patient review trigger is rationally related to the Act’s goals because it creates a standard of care to ensure a bona fide physician-patient relationship and then “ensur[es] the standard is being followed by requiring review after a doctor certifies 25 or more patients in a year.” ¶38 We agree that the District Court incorrectly applied rational basis scrutiny to conclude that the 25-patient review trigger is not rationally related to the Act’s goals. The District Court based its conclusion on a finding that the 25-patient review trigger was “not necessary” to the goals of the medical marijuana laws. The question under rational basis review, however, is not whether the provision is necessary, but whether the provision is arbitrary or whether it has a “reasonable relation to some permitted end of governmental action Powder River Cnty. v. State, 2002 MT 259, ¶ 79, 312 Mont. 198, 60 P.3d 357 (citations omitted). Although any limit the Legislature chooses may be attacked as an arbitrary number, we conclude that a 25-patient review trigger is not arbitrary in light of the statute’s objectives. The legislative history and testimony from the June 2011 preliminary injunction hearing show that there indeed were problems with over-certification under the 2004 Act. To address this problem, the Legislature created an objective standard of care for marijuana certification — set forth in § 50-46-302(2)(c), (18), MCA, — and the 25-patient review trigger. There is no arbitrary punishment for a doctor who certifies 25 or more patients because the Board of Medical Examiners is not required to suspend or otherwise take remedial action against the doctor under the statute. Section 50-46-303(10)(a), MCA. Section 50-46-303(10)(a), MCA, requires only that the board review the doctor’s practices to determine whether they meet the standard of care. ¶39 While a 25-patient review trigger may or may not be the most effective way to prevent over-certification, it is beyond our purview to second-guess the “wisdom or expediency of the legislation.” Rohlfs, ¶ 31. And while there may not be precise statistical evidence that 25 patients is an ideal number to signal potential abuses, “rational distinctions may be made with substantially less than mathematical exactitude.” Ward, ¶ 23 (citations omitted). The review trigger also addresses the federal government’s expectation for “strong and effective regulatory and enforcement systems that will address the threat [that State marijuana laws] could pose to public safety, public health, and other law enforcement interests.” Cole Memorandum at 2. While a different scheme for preventing over-certification would have been permissible, the Legislature’s policy choice in this instance is not constitutionally invalid. See Ward, ¶ 24. ¶40 Finally, as noted above, the Legislature will continue to monitor its medical marijuana restrictions and recommend changes where circumstances warrant. Section 50-46-343, MCA. The 25-patient review trigger has never been in effect. Therefore, if the review provision turns out to be onerous or unworkable, the issue may be brought to the Legislature for consideration. ¶41 Because the 25-patient review trigger is rationally related to the legitimate state interest of carefully regulating the distribution of medical marijuana while allowing its limited use for people with debilitating medical conditions, we hold that the District Court erred in determining that the 25-patient review trigger failed rational basis review. Accordingly, we vacate the District Court’s injunction against § 50-46-303(10), MCA, and uphold that provision of the Act. ¶42 2. Whether the District Court erred in determining that the Act’s commercial prohibitions (§§ 50-46-308(3), (4), (6)(a), (b), MCA) fail rational basis review. ¶43 The District Court enjoined several provisions of the Act that prohibit commercial trade in marijuana and marijuana products. The Act accomplishes its commercial restraint through two primary mechanisms: a three-patient limit for providers of marijuana products and a restriction against remuneration to providers. Section 50-46-308, MCA, provides: (3)(a)(i) A provider or marijuana-infused products provider may assist a maximum of three registered cardholders. (ii) A person who is registered as both a provider and a marijuana-infused products provider may assist no more than three registered cardholders. (b) If the provider or marijuana-infused products provider is a registered cardholder, the provider or marijuana-infused products provider may assist a maximum of two registered cardholders other than the provider or marijuana-infused products provider. (4) A provider or marijuana-infused products provider may accept reimbursement from a cardholder only for the provider’s application or renewal fee for a registry identification card issued under this section. (6) A provider or marijuana-infused products provider may not: (a) accept anything of value, including monetary remuneration, for any services or products provided to a registered cardholder; (b) buy or sell mature marijuana plants, seedlings, cuttings, clones, usable marijuana, or marijuana-infused products. Sections 50-46-308(3), (4), (6)(a), (b), MCA. The District Court analyzed the preceding sections as a whole, collectively referring to them as the “commercial provisions.” The court concluded that Plaintiffs met their initial burden by showing that the sections created distinct classes, and that the burden then shifted to the State to justify the distinction. The court found that one of the Act’s purposes is to “afford access to marijuana for persons with seriously debilitating conditions.” The court concluded that the commercial prohibitions “work in opposition to the goals of the statutes and the policy of the state” because the “compassionate purposes” of the statute are lost by the prohibition. According to the District Court, no provider “has come forward willing to invest the time, money, and labor to provide medical marijuana for free.” Therefore, the court concluded that the commercial prohibitions make it nearly impossible for people with the most serious debilitating conditions to get access to marijuana because the prohibitions essentially require them to grow their own marijuana — which they often are physically or financially unable to do. Based on these findings, the court held that there was no rational basis for the Act’s commercial prohibitions. ¶44 The District Court also addressed one of the State’s justifications for the commercial prohibitions — that marijuana is illegal under federal law. The court concluded that federal illegality cannot be a justification for the commercial prohibitions because the Act itself is “contrary’ to federal law. To further support its conclusion, the court emphasized that the State had not provided evidence to show that certain abuses, prior to the Act’s passage, still existed. Based on this alleged lack of evidence, the court concluded that the commercial prohibitions were irrelevant because “the medical marijuana laws, as enjoined ... have accomplished their purpose.” ¶45 The State argues that the commercial prohibitions “easily pass” rational basis review for three reasons. First, the State claims that the court assumed an incorrect purpose for the Act because the explicit purpose of allowing “ limited’ cultivation cannot be read to include affording commercial access — certainly not under rational basis review.” The State argues that the court inappropriately ruled on the “wisdom or expediency of the legislation” rather than providing the State the benefit of the doubt and assuming “any possible purpose” that may provide a legitimate interest. Second, the State claims that the District Court erred in refusing to consider federal illegality as a possible legitimate state interest for the commercial prohibitions. The State asserts that it has a legitimate interest in “lessening the conflict between a state law, its citizens, and federal law,” and that “taking the money out” of medical marijuana means that the federal government is less likely to get involved. Third, as discussed above, the State argues that the District Court erred by considering changed circumstances or the effects of the court’s preliminary injunctions. The State suggests that current circumstances support prohibition in any event because the growing number of cardholders evidences an increased potential for abuse. ¶46 Plaintiffs argue that the commercial prohibitions are an irrational response by the State to “perceived abuses.” According to Plaintiffs, “the State cannot, on the one hand, declare marijuana legally a medicine, but, on the other hand, arbitrarily discriminate as to who may access it.” Plaintiffs contend that the State failed to provide “conceivable justifications” for the three-patient limit in its response to Plaintiffs’ Interrogatories. Plaintiffs respond to the State’s claimed justifications by arguing that: 1) selective scattered sound bites from legislative debates do not support rational basis because they are not authoritative and are “too general and not supported by evidence;” 2) according to Marquand’s testimony, there have been no problems with traveling caravans, doctor certification, and telemedicine since 2011; and 3) the federal ban is equivocal in that the State cannot definitively say whether there truly is a danger of federal prosecution because the U.S. Department of Justice, in the Ogden and Cole Memoranda, have “made it clear it will not interfere with the states as long as the states carefully monitor their laws.” ¶47 Our review of the commercial prohibitions focuses on whether they are rationally related to the State’s legitimate interest in carefully regulating access to an otherwise illegal substance for serious medical conditions. We analyze the three-patient limit separately from the remuneration restrictions. Three-Patient Limit: § 50-46-308(3), MCA ¶48 The three-patient limit is rational so long as it is not a capricious or arbitrary means of accomplishing the Act’s legitimate purpose. Powder River Cnty., ¶ 79. As noted previously, the Act was passed “in response to a drastic increase of caregivers and medical marijuana users.” MCIA I, ¶ 2. Because of this concern, one of the Act’s explicit purposes is to “allow individuals to assist a limited number of registered cardholders with the cultivation and manufacture of marijuana or marijuana-infused products.” Section 50-46-301(c), MCA. ¶49 The Legislature determined that placing a limit on the number of registered cardholders a provider may assist serves the objectives of keeping marijuana away from large-scale manufacturing operations, making it less appealing to major traffickers. This relates directly to the federal government’s goals of preventing marijuana sales revenue from going to criminal enterprises and of keeping state-authorized marijuana activity from being used as a cover for other drug trafficking. Plaintiffs conceded during oral argument that, in light of these concerns, the State “probably could” set limits on the number of cardholders a provider could assist. The Legislature conceivably could have fixed a different number. But in the face of marijuana’s outright prohibition under federal law, and the U.S. government’s avowed intention to investigate and prosecute marijuana offenses where it finds “an important federal interest,” Cole Memorandum at 4, it is not irrational for the Legislature to put mechanisms in place to limit its commercial profitability. Whether a limit of just three patients is the best or the most effective means of achieving the State’s legitimate purpose is not for the Court to judge. Rohlfs, ¶ 31. Furthermore, it is outside our authority to opine on what number — if not three — would pass constitutional muster; “mathematical exactitude” is not required. Ward, ¶ 23 (citations omitted). Finally, the Legislature has committed itself to reviewing such matters if the three-patient limit proves unworkable. Section 50-46-343, MCA. ¶50 Because the three-patient limit is reasonably related to the legitimate governmental concern of affording a means of treatment while avoiding large-scale commercial marijuana production, we hold that the District Court erred in concluding that the three-patient limit fails rational basis scrutiny. Walters, ¶ 18. Accordingly, we vacate the District Court’s injunction against § 50-46-308(3) MCA, and we uphold this subsection of the Act. Remuneration Restrictions: § 50-46-308(4), (6)(a), (b), MCA ¶51 In analyzing the remuneration restrictions for due process concerns we consider whether the restrictions bear a fair and substantial relation to the object of the legislation. Powell, ¶ 29. The State asserts that the purpose of the remuneration restrictions is to protect Montana from federal involvement by avoiding large-scale commercial marijuana operations. According to the State, the remuneration restrictions are rationally related to that goal. ¶52 Plaintiffs respond by pointing to Kemp’s testimony that if the three-patient limit and the remuneration restrictions were implemented, “that alone would completely disable it and invalidate the program.” While the initial choice to regulate is one for the legislative branch, Plaintiffs argue, “the Act’s attempt to prohibit all commercial traffic is completely out of proportion to any reasonable assessment of potential abuse.” ¶53 Legislative history indicates that the purpose of imposing restrictions against financial compensation of providers was to “keep the money out” of the marijuana business — presumably, to meet the federal government’s objectives of preventing large-scale marijuana production operations that could serve as a front for other illegal drug trafficking and could funnel revenues to cartels, gangs, and criminal enterprises. While this is a legitimate objective, we must be able to ascertain a rational relationship between a complete prohibition against financial compensation and the objectives the Legislature sought to achieve. Walters, ¶ 18. We conclude that the remuneration restrictions fail this inquiry. ¶54 We first observe that the Act does not prohibit physicians from being compensated for their services or expenses when they examine a patient and provide written certification for the patient’s medical use of marijuana products. In addition, the State has not cited, and the Court has not found, any other service or product sanctioned by state law that the Legislature has mandated be provided for free. Although the State argues that the remuneration restrictions do effectively “keep the money out,” the restrictions are at odds with the Legislature’s stated purpose of allowing the limited possession and use of marijuana by persons with debilitating medical conditions in order to alleviate their symptoms. Section 50-46-301(2)(a), (b), MCA. More, the restriction is contrary to the purpose of keeping marijuana revenues out of the hands of criminals because it drives the business of medical marijuana to the black market. The Act allows marijuana to be used medically with approval by a physician. The complete prohibition against compensation is invidious because medical marijuana, even when approved by a physician, would have no commercially available source of supply. ¶55 Finally, this provision also implicates equal protection concerns. See Evitts, 469 U.S. at 405, 105 S. Ct. at 841; Ross, 417 U.S. at 609, 94 S. Ct. at 2443 (recognizing that concerns of both clauses may be implicated in some cases and offer support for the Court’s conclusions). “A classification is not reasonable if it... ‘imposes peculiar disabilities upon [a] class of persons arbitrarily selected from a larger number of persons, all of whom stand in the same relation to privileges conferred or disabilities imposed.’ ” Kottel v. State, 2002 MT 278, ¶ 55, 312 Mont. 387, 60 P.3d 403 (quoting Leuthold v. Brandjord, 100 Mont. 96, 105, 47 P.2d 41, 45 (1935)). To withstand rational basis scrutiny, a legislative classification must rest upon a “real difference” and some reasonable consideration of difference or policy. Powder River Cnty., ¶ 79. As between all users of medical marijuana, the remuneration provision imposes a peculiar disability upon those unable to provide for themselves. To prohibit all compensation arbitrarily sets apart the patient who is unable to produce a medical marijuana product for her own use; this is not encompassed within any of the Act’s legitimate objectives and is not based on reasonable consideration of differences between people with debilitating medical conditions. ¶56 Accordingly, we conclude that the absolute prohibition against remuneration is not reasonable “when balanced against the purpose of the [L]egislature in enacting the [Act].” Egdorf, ¶ 19. We uphold the District Court’s permanent injunction against the remuneration restrictions, § 50-46-308(4), (6)(a), (b), MCA, and declare that those provisions are invalid as violative of the equal protection and due process clauses of the Montana Constitution. ¶57 3. Whether the District Court erred in applying strict scrutiny review to the Act’s provision prohibiting advertising by providers of medical marijuana (§ 50-46-341, MCA), thereby concluding that the provision unconstitutionally infringes free speech. ¶58 Applying strict scrutiny, the District Court determined that the advertising prohibition violates the First Amendment. The court held that the provision restricts content-based speech because it “renders the ‘playing field’ for discussion of pros and cons of medical marijuana completely uneven.” Additionally, the District Court concluded that the advertising prohibition is “so vague and overbroad as to be meaningless as to what it prohibits,” because it leaves open the potential of banning political speech as well. The court also concluded that the statute is too narrow in that it limits only advertising by valid cardholders and because “[r]egulations which impose speech restrictions on one group are seldom upheld.” ¶59 The State asserts that this Court should apply basic rules of statutory construction to conclude that the statute unambiguously bars commercial speech only, thus affording it less protection. The State’s primary contention is that the District Court erred by applying strict scrutiny to the advertising ban when it should have applied the four-part commercial speech test set forth in Central Hudson Gas & Electric v. Public Service Commission of New York, 447 U.S. 557, 100 S. Ct. 2343 (1980). Citing City of Great Falls v. Morris, 2006 MT 93, ¶ 19, 332 Mont. 85, 134 P.3d 692, the State argues that the court should have interpreted the statute narrowly in a way that avoids an unconstitutional interpretation. ¶60 Plaintiffs argue that the advertising ban is overbroad and implicates both political and educational speech. Plaintiffs therefore claim that the court was correct to apply strict scrutiny instead of rational basis. Plaintiffs further argue that the government failed to meet even a rational basis standard when it relied on an overly deferential interpretation of the standard and failed to provide a M. R. Civ. P. 30(b)(6) witness or other evidence to justify the ban. ¶61 The U.S. Supreme Court has defined commercial speech as an “expression related solely to the economic interests of the speaker and its audience.” Cent. Hudson, 447 U.S. at 561, 100 S. Ct. at 2349. This definition, together with our well-established rules of statutory interpretation, guides our determination of the speech that § 50-46-341, MCA, prohibits. ¶62 In construing a statute, we are “to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted.” Section 1-2-101, MCA. “Statutory language must be construed according to its plain meaning and if the language is clear and unambiguous, no further interpretation is required.” In re Adoption of Snyder, 2000 MT 61, ¶ 14, 299 Mont. 40, 996 P.2d 875. “[W]e construe statutes narrowly to avoid an unconstitutional interpretation if possible.” Farrier v. Teachers Ret. Bd., 2005 MT 229, ¶ 13, 328 Mont. 375, 120 P.3d 390. ¶63 Applying these rules of construction to § 50-46-341, MCA, we conclude that the advertising ban prohibits only commercial speech. The statute provides: Advertising prohibited. Persons with valid registry identification cards may not advertise marijuana or marijuana-related products in any medium, including electronic media. Section 50-46-341, MCA. Advertising is “[t]he action of drawing the public’s attention to something to promote its sale.” Black’s Law Dictionary 65 (Bryan A. Garner ed., 10th ed. 2014). A product is “[something that is distributed commercially for use or consumption ....” Black’s Law Dictionary, supra, at 1402. These commonly understood terms the statute employs are not subject to multiple interpretations. The plain language clearly and unambiguously establishes that the statute is aimed solely at expression relating to the commercial sale of marijuana or marijuana products for use or consumption. We would impermissibly “insert what has been omitted” to hold that the statute implicates political speech or speech pertaining to education or advocacy. Section 1-2-101, MCA. ¶64 “Commercial speech is accorded less constitutional protection than noncommercial speech.” Mont. Media, Inc. v. Flathead Cnty., 2003 MT 23, ¶ 30, 314 Mont. 121, 63 P.3d 1129 (citing Metromedia Inc. v. City of San Diego, 453 U.S. 490, 506, 101 S. Ct. 2882, 2891-92 (1981)). To determine the validity of a commercial speech restriction, we apply the factors set forth in Central Hudson, which do not call for strict scrutiny. Mont. Media, Inc., ¶ 31. The Central Hudson factors are: (1) the speech must concern lawful activity and not be misleading; (2) the asserted government interest must be substantial; (3) the regulation must directly advance the governmental interest asserted; and (4) the regulation must not be more excessive than necessary to achieve its purpose. Cent. Hudson, 447 U.S. at 566, 100 S. Ct. at 2351. ¶65 Considering the first factor, it bears repeating that marijuana use or possession unequivocally is an unlawful activity under federal law. 21 U.S.C. §§ 812, 841, 845; MCIA I, ¶ 32. Federal law controls our First Amendment commercial speech analysis, U.S. Const, amend. I; Mont. Media, ¶ 31, and Plaintiffs rely exclusively on federal law in their argument on this issue. Congress has acted upon the subject of marijuana and made it illegal. That a person possesses or uses medical marijuana in compliance with the laws of his or her state of residence provides no defense under the federal law. Gonzales v. Raich, 545 U.S. 1, 29, 125 S. Ct. 2195, 2212-13 (2005). “[A]ny legislation of a State, although in pursuance of an acknowledged power reserved to it, which conflicts with the actual exercise of the power of Congress over the subject of commerce, must give way before the supremacy of the national authority.” Smith v. Ala., 124 U.S. 465, 437, 8 S. Ct. 564, 566 (1888); U.S. Const. art. I, § 8, cl. 3. While the states retain police power to establish and enforce laws protecting the welfare, safety, and health of the public, U.S. Const. amend. X, if Congress acts upon the same subject, “the laws of the States, in so far as they cover the same field, are superseded, for necessarily that which is not supreme must yield to that which is.” Second Emp’rs Liab. Cases, 223 U.S. 1, 55, 32 S. Ct. 169, 177 (1912) (citations omitted). ¶66 Because federal law governs the analysis of this issue, we conclude that an activity that is not permitted by federal law — even if permitted by state law — is not a “lawful activity” within the meaning of Central Hudson’s first factor. As such, the advertisement of marijuana is not speech that concerns lawful activity. There is no First Amendment violation and our analysis under Central Hudson therefore ends here. ¶67 Section 50-46-341, MCA, limits only commercial speech. The District Court accordingly erred in applying strict scrutiny instead of the Central Hudson test. Section 50-46-341, MCA, does not satisfy the first factor under Central Hudson, and thus does not unconstitutionally infringe on First Amendment free speech rights. Accordingly, we vacate the District Court’s injunction against § 50-46-341, MCA, and uphold the statute. ¶68 4. Whether the District Court erred in determining that the Act’s provision prohibiting probationers from becoming registered cardholders for medical marijuana use (§ 50-46-307(4), MCA) withstands a facial challenge under rational basis scrutiny. ¶69 Section 50-46-307(4), MCA, prohibits probationers from becoming registered cardholders for medical marijuana: “A person may not be a registered cardholder if the person is in the custody of or under the supervision of the department of corrections or youth court.” Section 50-46-307(4), MCA. ¶70 The District Court upheld § 50-46-307(4), MCA, because it was “able to perceive a substantial rational basis for th[e] provision.” The court noted that probationers “routinely have several limitations on their activities and rights.” While the court agreed with Plaintiffs’ argument that criminal sentences should have a “nexus with the underlying offense,” the court ultimately concluded that determining such a nexus requires case-by-case consideration, which “raises genuine issues of material fact beyond the ability of this Court to determine on a motion for summary judgment.” ¶71 The State defends the District Court’s ruling, suggesting that Plaintiffs must bring any challenge to § 50-46-307(4), MCA, as applied to a particular case, rather than as a facial challenge, because there are “clearly circumstances in which the prohibition is constitutional.” ¶72 Plaintiffs contend that the “blanket prohibition” on probationers receiving medical marijuana is facially invalid because “the law, on its face, classifies persons for different treatment.” Plaintiffs maintain that § 50-46-307(4), MCA, undermines the purpose of the Act — to provide access to medical marijuana for those with debilitating medical conditions. Plaintiffs point out that under State v. Ashby, 2008 MT 83, 342 Mont. 187, 179 P.3d 1164, a sentencing court may, on a case-by-case basis, impose reasonable conditions on sentences so long as the conditions have “a nexus” either to the offense or to the offender. Ashby, ¶ 15. This case-by-case analysis, Plaintiffs suggest, is impossible under the current statute because the ban prohibits medical marijuana in all cases for probationers. Plaintiffs argue that the “complete ban on probationers’ use” should be declared unconstitutional, and that a sentencing court should consider on a case-by-case basis whether to allow marijuana use by an offender serving a suspended or deferred sentence, just as sentencing courts consider other appropriate conditions based on the characteristics of the offender and of the offense committed. ¶73 We agree with the District Court. As noted above, a facial challenge may succeed only if the challenger can establish that “no set of circumstances exists under which the [challenged legislation] would be valid.” Salerno, 481 U.S. at 745, 107 S. Ct. at 2100. That the challenged provision “might operate unconstitutionally under some conceivable set of circumstances is insufficient to render it wholly invalid ....” Salerno, 481 U.S. at 745, 107 S. Ct. at 2100. Although Plaintiffs mount a facial challenge to the ban on probationer use, they recognize that a sentencing court is authorized by law to impose reasonable conditions on a sentence that the sentencing judge “considers necessary to obtain the objectives of rehabilitation and the protection of the victim and society.” Section 46-18-202(1), MCA. Whether a condition or restriction of a sentence bears the requisite “nexus” to the offender or to the underlying offense is a question of compliance with sentencing statutes. Ashby, ¶¶ 13-15. If, in a particular case, a district court imposes a sentence prohibiting medical marijuana use but the required nexus is not satisfied, an offender may be able to bring a claim that, as applied to that offender and to his or her sentence, § 50-46-307(4), MCA, is unconstitutional. Plaintiffs acknowledge that a sentencing court would have discretion, in particular cases, to prohibit an offender from using or possessing medical marijuana. In light of this concession, Plaintiffs cannot argue that the ban on probationer use is invalid under any conceivable set of circumstances. As such, § 50-46-307(4), MCA, is not facially invalid. We affirm the District Court’s ruling upholding the provision prohibiting probationers from becoming registered cardholders for medical marijuana use. ¶74 5. Whether the District Court erred in determining that the Act’s provision allowing warrantless inspections of medical marijuana providers’ businesses by the Department and law enforcement agencies (§ 50-46-329, MCA) comports with the U.S. and Montana Constitutions’ guarantees against unreasonable searches. ¶75 The Act allows law enforcement agencies to inspect a provider’s premises during normal business hours without a warrant. Section 50-46-329, MCA, provides: Inspection procedures. (1) The department and state or local law enforcement agencies may conduct unannounced inspections of registered premises. (2) (a) Each provider and marijuana-infused products provider shall keep a complete set of records necessary to show all transactions with registered cardholders. The records must be open for inspection by the department and state or local law enforcement agencies during normal business hours. (b) The department may require a provider or marijuana-infused products provider to furnish information that the department considers necessary for the proper administration of this part. (3) (a) A registered premises, including any places of storage, where marijuana is cultivated, manufactured, or stored is subject to entry by the department or state or local law enforcement agencies for the purpose of inspection or investigation during normal business hours. (b) If any part of the registered premises consists of a locked area, the provider or marijuana-infused products provider shall make the area available for inspection without delay upon request of the department or state or local law enforcement officials. (4) A provider or marijuana-infused products provider shall maintain records showing the names and registry identification numbers of registered cardholders to whom mature plants, seedlings, usable marijuana, or marijuana-infused products were transferred and the quantities transferred to each cardholder. ¶76 In upholding this provision, the District Court relied on New York v. Burger, 482 U.S. 691, 107 S. Ct. 2636 (1987). In Burger, the U.S. Supreme Court established a rule that administrative or regulatory inspections of “closely regulated” industries can constitute an exception to the warrant requirement even if the inspections are conducted by law enforcement officials to uncover and use evidence of criminal behavior. Burger, 482 U.S. at 703-11, 107 S. Ct. at 2646-48. The District Court concluded that the marijuana industry is a closely regulated industry. The court emphasized that “possession and use of marijuana remains a crime under federal law,” and that the “entire issue of marijuana use and possession generally has significant criminal overtones.” Moreover, the court concluded that § 50-46-329, MCA, “carefully defin[ed]” the premises subject to inspection, thereby avoiding concerns that inspections might be too broad or intrusive. ¶77 Plaintiffs contend that the court’s “lock-step adherence” to Burger is incorrect because 1) the search provisions relate to law enforcement functions rather than to administrative searches, and 2) Montana’s privacy rights are much stronger than those implicitly found under the United States Constitution. Relying on federal law, Plaintiffs argue that the authorization for warrantless inspections is unconstitutional because there are “no administrative regulations concerning specific neutral criteria governing warrantless searches under the Act.” According to Plaintiffs, the lack of a regulatory scheme makes it “abundantly clear that the so-called ‘inspection’ procedures of the Act are for the sole purpose of allowing law enforcement officers to develop evidence for enforcement of criminal laws.” Additionally, given Montana’s explicit privacy expectation, Plaintiffs argue that the State must have a compelling reason to invade someone’s privacy and that it has demonstrated none. Plaintiffs assert that the State “failed to provide a meaningful answer and refused to produce a [M. R. Civ. P.] 30(b)(6) witness” when Plaintiffs questioned the inspections’ purposes in pre-trial discovery. ¶78 Plaintiffs’ argument that marijuana is not a heavily regulated industry in Montana because there are “no regulations ... applying to growing operations or establishing inspection procedures for medical marijuana dispensaries” overlooks that the provision has been the subject of this litigation since its enactment. Thus, there has been no opportunity for its full implementation. Further, Plaintiffs acknowledge that marijuana is classified as a Schedule I drug — the most strictly regulated classification under the Controlled Substances Act. 21 U.S.C. § 812(c). “Schedule I drugs are categorized as such because of their high potential for abuse, lack of any accepted medical use, and absence of any accepted safety for use in medically supervised treatment.” Gonzales, 545 U.S. at 14, 125 S. Ct. at 2204. ¶79 Plaintiffs’ argument that the production of medical marijuana is not a closely regulated industry is in disaccord with their argument that many provisions of the Act are overly restrictive. By design, the Act distinguishes medical marijuana from other substances for which a prescription may be obtained and filled under an existing set of laws and regulations comprehensively controlling the sale and dispensing of lawful medications. Because marijuana cannot be prescribed within that regulatory framework, the Legislature imposed instead a series of restrictions to curb widespread distribution and to limit possession of the substance to individuals with debilitating medical conditions for whom there is little or no other effective treatment. Marijuana’s status as a strictly prohibited drug under federal law required the Legislature to devise a substitute method of regulation. ¶80 Although Plaintiffs eschew “lock-step adherence” to federal law, they do not develop their argument that the result would be different under a Montana constitutional privacy analysis, except to fault the State for failing “to produce a 30(b)(6) witness” to establish a compelling state interest as required by Montana Constitution Article II, Section 10. Plaintiffs cite no authority that this determination requires an evidentiary foundation. ¶81 Rather, to determine what constitutes an unlawful intrusion by the government into one’s privacy, the Court considers the following factors: (1) whether the person has an actual expectation of privacy; (2) whether society is willing to recognize that expectation as objectively reasonable; and (3) the nature of the state’s intrusion. State v. Therriault, 2000 MT 286, ¶ 33, 302 Mont. 189, 14 P.3d 444. While individuals may have an actual expectation of privacy from warrantless searches, an expectation that a provider’s marijuana production and distribution facilities are entitled to the same privacy protections is not one that society is willing to recognize as objectively reasonable. Indeed, it is reasonable for owners of registered premises where marijuana — a uniquely regulated substance — is cultivated, manufactured, or stored to expect those premises to be subject to inspection during normal business hours to satisfy the State’s legitimate regulatory interests. ¶82 Plaintiffs’ argument that the primary reason for the procedures under § 50-46-329, MCA, “is to allow for evidentiary searches for criminal enforcement purposes” is not only unsubstantiated, but also inappropriate for a facial challenge. Without any supporting evidence, Plaintiffs conclude that because Montana has no regulatory scheme regarding grow operations, “it is abundantly clear that the so-called ‘inspection’ procedures of the Act are for the sole purpose of allowing law enforcement officers to develop evidence for enforcement of criminal laws.” This conclusory assertion does not support a holding that the inspection procedures are facially invalid. Section 50-46-329, MCA, on its face addresses only the regulatory aspects of the medical marijuana industry, not the enforcement of criminal laws. If issues arise with a warrantless inspection against a particular facility, then it may be appropriate to challenge the statute “as applied” to that business. We conclude that Plaintiffs have failed to establish that “no set of circumstances exists under which the [challenged legislation] would be valid.” Salerno, 481 U.S. at 745, 107 S. Ct. at 2100. The District Court did not err in declining to enjoin § 50-46-329, MCA, and we affirm its ruling on this point. CONCLUSION ¶83 For the reasons stated above, the District Court’s judgment is affirmed in part and reversed in part. We vacate the District Court’s injunctions against the 25-patient physician review provision (§ 50-46-303(10), MCA), the three-patient limit (§ 50-46-308(3), MCA), and the advertising prohibition (§ 50-46-341, MCA), and uphold the constitutionality of those provisions; we declare the remuneration restrictions (§ 50-46-308(4), (6)(a), (b), MCA), to be unconstitutional under the equal protection and due process clauses of the Montana Constitution and permanently enjoin the enforcement of those provisions; and we affirm the District Court in upholding the constitutional validity of the provision prohibiting probationers from becoming registered cardholders for medical marijuana use (§ 50-46-307(4), MCA), and the provision allowing warrantless inspections of medical marijuana providers’ businesses by the Department and law enforcement agencies (§ 50-46-329, MCA). CHIEF JUSTICE McGRATH and JUSTICE SHEA and DISTRICT JUDGE OLSON, sitting for JUSTICE COTTER concur. The parties agreed that the District Court could consider testimony and evidence submitted at the June 2011 hearing on Plaintiffs’ previous motion for preliminary injunction. Alaska Stat. §§ 17.37.010 et seq. (medical), §§ 17.38.010 et seq. (recreational); Ariz. Rev. Stat. §§ 36-2801 et seq. (medical); Cal. Health & Safety Code §§ 11362.5 et seq. (medical); Colo. Rev. Stat. §§ 12-43.3-101 et seq. (medical), §§ 12-43.4-101 et seq. (recreational); Conn. Gen. Stat. §§ 21a-408 et seq. (medical); Del. Code Ann. tit. 16, §§ 4901A et seq. (medical); D.C. Code §§ 7.1671.01 et seq. (medical); Haw. Rev. Stat. §§ 329-121 et seq. (medical); 410 Ill. Comp. Stat. Ann. 130/1 et seq. (medical); Me. Rev. Stat. tit. 22, §§ 2421 et seq. (medical); Md. Code Ann. Health-Gen §§ 13-3301 et seq. (medical); Mass. Ann. Laws ch. 94C, §§ Appx. 1 et seq. (medical); Mich. Comp. Laws Serv. §§ 333.26421 et seq. (medical); Minn. Stat. Ann. §§ 152.27 et seq. (medical); Nev. Rev. Stat. §§ 453A._[2015 ch. 401, § 29] et seq. (medical); N.H. Rev. Stat. Ann. §§ 126-X:2 et seq. (medical); N. J. Stat. Ann. §§ 24:61-1 et seq. (medical); N.M. Stat. Ann. §§ 26-2B-1 et seq. (medical); N.Y. CLS Pub. Health Law §§ 1004.1 et seq. (medical); Or. Rev. Stat. §§ 475.300 et seq. (medical), Or. Rev. Stat. §§_,__ [2015 c.l, § 3] et seq. (recreational); R.I. Gen. Laws §§ 21-28.6-1 et seq. (medical); Vt. Stat. Ann. tit. 18 §§ 4472 et seq. (medical); Wash. Rev. Code §§ 69.51A et seq. (medical), Wash. Rev. Code §§ 69.50.360, 69.50.363, 69.50.66, 69.50.401 (recreational). A number of bills have been introduced during recent Sessions of Congress, none of which have moved forward. E.g., Respect State Marijuana Laws Act of 2015, H.R. 1940, 114th Cong. (2015); States’ Medical Marijuana Property Rights Protection Act, H.R. 262, 114th Cong. (2015); Marijuana Businesses Access to Banking Act of 2015, H.R. 2076, 114th Cong. (2015). Respect State Marijuana Laws Act of 2013, H.R. 1523, 113th Cong. (2013); National Commission on Federal Marijuana Policy Act of 2013, H.R. 1635, 113th Cong. (2013); States’ Medical Marijuana Property Rights Protection Act, H.R. 6335, 112th Cong. (2012); States’ Medical Marijuana Patient Protection Act, H.R. 1983, 112th Cong. (2011). Indeed, while the Act was under consideration, federal law enforcement agencies conducted raids on medical marijuana facilities in multiple Montana communities, and the United States commenced prosecution against numerous individuals involved in the operations.
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JUSTICE BAKER delivered the Opinion of the Court. ¶1 W.S. (Father) appeals from the orders of the Thirteenth Judicial District Court, Yellowstone County, terminating his parental rights to A.M.S., M.A.S., and A.W.S., and entering decrees of adoption in favor of C. J. (Grandfather). In accordance with M. R. App. P. 10(6), we have amended the caption to remove the full names of all involved parties. We restate the dispositive issues on appeal: 1. Whether Father was properly served by publication. 2. Whether the District Court erred in granting the petition for adoption and termination. ¶2 We reverse and remand for further proceedings. PROCEDURAL AND FACTUAL BACKGROUND ¶3 Father and J.J. (Mother) are the biological parents of minor children, A.M.S., M.A.S., and A.W.S. Grandfather is the children’s maternal grandfather. Although the record on appeal is quite limited, it is undisputed that Father and Mother married in 2005 and divorced in 2013. Mother and Grandfather currently reside in Billings, Montana, and Father resides in Los Angeles, California. ¶4 On July 1, 2014, Mother and Grandfather filed a joint petition for termination of Father’s parental rights and for Grandfather to adopt the children. Under the petition, Mother would maintain her parental rights. The District Court issued a summons for Father on the same day the petition was filed. ¶5 After attempting to serve Father, whose exact whereabouts in Southern California were unknown at the time, Mother’s and Grandfather’s counsel submitted an affidavit on October 14, 2014, stating that Father could not be found and requesting that the District Court order publication of summons. On October 15, 2014, the Clerk of Court entered an order directing that service of the summons be made upon Father by publication in the Billings Times newspaper. ¶6 Father did not respond to the summons. On December 12, 2014, Mother and Grandfather filed a motion for entry of default. The Clerk of Court entered default against Father three days later on December 15, 2014. ¶7 The District Court held a hearing on March 13, 2015. During the seven-minute hearing, Grandfather and Mother testified and submitted one exhibit. The exhibit included the following documents: a letter from Grandfather’s and Mother’s counsel to a California-based process server; a letter to Father at a Billings address regarding the proceedings; an e-mail to Father regarding the proceedings; and a number of pictures of Father from various social media sites. Father did not provide on appeal, and the record does not contain, a hearing transcript. At the close of the hearing, the District Court issued combined written orders terminating Father’s parental rights and granting decrees of adoption for each of the children. STANDARD OF REVIEW ¶8 We review a district court’s decision to terminate parental rights for an abuse of discretion. In re the Matter of the Termination of the Parental Rights and Adoption of: J.W.M. & A.K.M., 2015 MT 231, ¶ 11, 380 Mont. 282, 354 P.3d 626. A district court abuses its discretion when it acts arbitrarily without conscientious judgment or exceeds the bounds of reason. J.W.M., ¶ 11. This Court reviews a district court’s interpretation and application of statutes for correctness, and its findings of fact to determine whether the findings are clearly erroneous. In re the Parenting of S.J.H. & J.B.H, 2014 MT 40, ¶ 8, 374 Mont. 31, 318 P.3d 1021. DISCUSSION ¶9 It is well established that parental rights are a fundamental liberty interest that “must be protected by fundamentally fair procedures.” In the Matter of K.J.B., 2014 MT 327, ¶ 18, 377 Mont. 270, 339 P.3d 824 (citing In re Adoption of A.W.S. & K.R.S., 2014 MT 322, ¶ 25, 377 Mont. 234, 339 P.3d 414); In re the Matter of J.N. & A.N., 1999 MT 64, ¶ 12, 293 Mont. 524, 977 P.2d 317. Accordingly, “a district court must adequately address each applicable statutory requirement before terminating an individual’s parental rights.” J.N., ¶ 12 (citing In re Declaring E. W., C. W., & A.W., 1998 MT 135, ¶ 12, 289 Mont. 190, 959 P.2d 951). Because an order terminating parental rights implicates a fundamental liberty interest, it must be supported by “clear and convincing evidence that the statutory criteria for termination have been met.” J.N., ¶ 12 (citing E. W., ¶ 12). ¶10 1. Whether Father was properly served by publication. ¶11 Title 42, MCA, governs the termination of parental rights when a child is the subject of an adoption proceeding. Sections 42-2-601 to - 620, MCA. Under § 42-2-605(1), MCA, notice of a hearing on a petition for termination of parental rights “must be served in any manner appropriate under the Montana Rules of Civil Procedure or in any manner that the court may direct ....” The notice must inform the individual whose rights will be terminated “that failure to appear at the hearing constitutes a waiver of the individual’s interest in custody of the child and will result in the court’s termination of the individual’s rights to the child.” Section 42-2-605(2), MCA. ¶12 Father argues that the clerk’s order for publication was improper and that service may not be made by publication in a proceeding to terminate parental rights. Mother and Grandfather respond that service by publication is proper under § 42-2-605(1), MCA. They further contend that they “followed both the letter and the spirit of this law.” ¶13 The Montana Rules of Civil Procedure authorize service by publication in four enumerated situations. M. R. Civ. P. 4(o)(l)(A)-(D). A parental rights termination proceeding is not one of the listed situations. Nevertheless, service by publication is permitted by statute in parental rights termination proceedings brought under both Title 41 and Title 42. Sections 41-3-428 and -429, MCA, authorize service by publication in child abuse and . neglect cases and specify the requirements for service in those cases. Section 42-2-605(1), MCA, provides for service of a notice of hearing on a petition for termination of parental rights brought in conjunction with an adoption proceeding “in any manner appropriate under the Montana Rules of Civil Procedure or in any manner that the court may direct on ... a person who is recorded on the child’s birth certificate as the child’s father;... or... a parent... of the child in question who has not waived notice.” We have observed that this statute allows a district court to order service by publication even though that method of service is not otherwise allowed by M. R. Civ. P. 4(o). M.B.J. v. Fourth Judicial Dist. Ct., 2010 Mont. LEXIS 515, *8, No. OP 10-0345 Or. (Mont. Oct. 6, 2010) (granting petition for writ of supervisory control and directing district court to order service of putative father(s) by publication). ¶14 Because § 42-2-605(1), MCA, provides for alternate service “in any manner that the court may direct” (emphasis added), publication may not be ordered by the clerk in the manner provided by M. R. Civ. P. 4(o)(3)(B). Rather, the court must direct the manner of alternate service in order for it be sufficient under § 42-2-605(1), MCA. Here, the Clerk of Court, not the District Court, entered the order directing service by publication. Service therefore was improper. ¶15 Service by publication further was insufficient because the publication did not put Father on notice that his parental rights would be terminated as required by § 42-2-605(2), MCA. The affidavit of publication in the record contains a copy of the published notice: IN THE MATTER OF THE ADOPTION OF A.M.S. THE STATE OF MONTANA SENDS GREETINGS TO RESPONDENT [FATHER]: You are hereby summoned to respond to the petition in this action which is filed in the office of the Clerk of this Court, a copy of which is herewith served upon you, and to file your response and serve a copy thereof upon the co-petitioners’ attorney within twenty-one (21) days after the service of this Summons, exclusive of the date of service; and in case of your failure to respond, judgment will be taken against you by default for the relief requested in the petition. Although the notice informed Father that if he did not respond “judgment [would] be taken against [him] by default for the relief requested in the petition,” it did not specify the relief requested. The notice therefore failed to inform Father “that failure to appear at the hearing constitutes a waiver of [his] interest in custody of the child and will result in the court’s termination of [his] rights to the child.” Section 42-2-605(2), MCA. ¶16 The District Court incorrectly applied the statutes governing service of the petition and notice of the hearing on Father. We conclude that Father was not properly served by publication. ¶17 2. Whether the District Court erred in granting the petition for adoption and termination. ¶18 Although our holding on Issue 1 requires reversal of the District Court’s orders and decrees, we address Father’s legal challenges to the termination and adoption in the event that service is perfected on remand. ¶19 Father relies on K.J.B. to assert that Mother and Grandfather were not permitted to bring the petition to terminate and adopt “in the first instance.” He argues that Grandfather and Mother are not parties who may bring a petition for termination under § 42-2-603(2), MCA, and that Grandfather is not a stepparent who may bring a petition for termination of parental rights in conjunction with a petition for adoption. Father therefore contends that the District Court lacked authority to terminate his parental rights. ¶20 K.J.B. does not support Father’s argument in this case. In K.J.B., the mother sought termination of the father’s parental rights, but the parties’ child was not the subject of an adoption proceeding. K.J.B., ¶¶ 3, 14. We therefore concluded that the mother could not bring the petition because a petition for termination of parental rights “under Title 42 may be filed only if the child is the subject of an adoption proceeding.” K.J.B., ¶ 14 (citing § 42-2-607(2), MCA). Here, the children are the subject of an adoption proceeding. ¶21 Under Title 42, “[a]n adoption decree may not be entered if the child who is the subject of an adoption proceeding is not legally free for adoption.” Section 42-1-107(1), MCA. Section 42-2-602(1), MCA, provides that “a child is not legally free for adoption until the parental rights of the birth parent or parents have been terminated by a court: (1) as provided in this title ....” Mother and Grandfather joined a petition for termination of parental rights with a petition for adoption — a procedure that Title 42 authorizes for stepparent adoptions. Section 42-4-302(3), MCA (providing that “[a] petition for adoption by a stepparent may be joined with a petition for termination of parental rights”); § 42-4-310, MCA (providing in pertinent part that “[a] stepparent who desires to adopt a stepchild shall obtain an order of termination of parental rights of the child’s noncustodial parent prior to or contemporaneously with the petition to adopt....” (emphasis added)). See J. W.M. (reviewing a petition for termination and adoption brought by mother and stepfather); In re the Adoption of K.P.M., 2009 MT 31, ¶ 45, 349 Mont. 170, 201 P.3d 833 (Nelson, J., dissenting) (observing that “a stepparent may join [his or her] petition for adoption with the natural parent’s petition for termination of parental rights”). If the petitions are joined, both the required contents for a termination of parental rights petition under § 42-2-604, MCA, and the required contents for an adoption petition under § 42-5-101, MCA, must be included. Furthermore, a petition for adoption and a petition for termination may be brought only by the proper parties. Sections 42-2-603(2) and 42-1-106, MCA. ¶22 Section 42-2-603(2), MCA, provides that a petition for termination of parental rights may be filed by “a guardian with custody of the child ....” Although these terms are not defined in Title 42, we find it appropriate to consult other provisions of the Montana Code to ascertain their meaning. When a word is defined in any part of the MCA, the same definition applies “wherever it occurs, except where a contrary intention plainly appears.” Section 1-2-107, MCA. See In re the Matter of the Conservatorship of Minor Children, J.S., K.S., & R.S., 2015 MT 335, ¶¶ 14-15, 381 Mont. 462, 362 P.3d 76 (applying statute in Title 40, MCA, to ascertain duties of guardian ad litem under § 25-5-301, MCA). “Guardian” is defined in Title 41 as “an adult: (a) who is responsible for a youth and has the reciprocal rights, duties, and responsibilities with the youth; and (b) whose status is created and defined by law.” Section 41-5-103(21), MCA. See also Black’s Law Dictionary, 822 (Bryan A. Garner ed., 10th ed. 2014) (defining “guardian” as “[s]omeone who has the legal authority and duty to care for another’s person or property, esp. because of the other’s infancy, incapacity, or disability”). Title 40 defines the “parent and child relationship” as “the legal relationship existing between a child and the child’s natural or adoptive parents incident to which the law confers or imposes rights, privileges, duties, and obligations. It includes the mother and child relationship and the father and child relationship.” Section 40-6-102(2), MCA. Parental authority over a child ceases upon a court’s appointment of a guardian or when the child marries or attains majority. Section 40-6-234, MCA. A parent’s legal rights, powers, and obligations also are divested by a decree terminating the parent-child legal relationship. Section 41-3-611, MCA. “Physical custody” is “the physical care and supervision of a child.” Section 40-7-103(14), MCA. ¶23 As the children’s natural mother who undisputedly has physical custody of the three children, Mother is a “guardian with custody of the child[ren]” within the meaning of § 42-2-603(2), MCA. She has standing to bring a petition for termination, provided that the children are the subject of a proper adoption proceeding. ¶24 Section 42-1-106, MCA, provides that the following individuals have standing to adopt a child if they otherwise meet the requirements of Title 42: (1) a husband and wife jointly or either the husband or wife if the other spouse is a parent of the child; (2) an unmarried individual who is at least 18 years of age; or (3) a married individual at least 18 years of age who is legally separated from the other spouse or whose spouse has judicially been declared incompetent. Because Mother is not relinquishing her children for adoption but seeking their adoption under the stepparent adoption procedures, the requirements of Title 42 “otherwise” applicable in this case are those contained in Title 42, chapter 4, part 3, MCA. ¶25 Under our case law, a “stepparent” is normally “someone who is married to a child’s biological parent.” In the Matter of J.B., 2015 MT 342, ¶ 19, 381 Mont. 525, 362 P.3d 859 (citations omitted). Section 42-4-302(2), MCA, however, provides that “[f]or good cause shown, a court may allow an individual who is not the stepparent but who has the consent of the custodial parent of a child to file a petition for adoption.” Such a petition “must be treated as if the petitioner were a stepparent.” Section 42-4-302(2), MCA. In that case, the petition for adoption “may be joined with a petition for termination of parental rights.” Section 42-4-302(3), MCA. The District Court made no findings of fact on Grandfather’s standing under either § 42-1-106 or § 42-4-302(2), MCA. ¶26 On remand, and if service is effected properly on Father, the District Court may allow the petition to proceed if it first determines that there is “good cause” for Grandfather to be treated as a “stepparent” under § 42-4-302(2), MCA, and that he meets the qualifications set forth in § 42-1-106, MCA. If the court so finds, it then may move forward with proceedings on the termination of Father’s parental rights in accordance with § 42-4-310, MCA, “prior to or contemporaneously with the petition to adopt.” CONCLUSION ¶27 We reverse the District Court’s order terminating Father’s parental rights and remand for further proceedings consistent with this opinion. CHIEF JUSTICE McGRATH, JUSTICES WHEAT, COTTER, McKINNON, SHEA and RICE concur. We consolidated the three orders following Father’s appeal. Although we referred Father to determine eligibility for participation in the Court’s Appellate Pro Bono Program, at Father’s request he continues to be self-represented in this appeal. In K.P.M. we concluded that a stepparent had standing to petition for termination of the non-custodial parent’s rights. K.P.M., ¶ 14. In that case; the stepparent’s petition initially sought only adoption but later was amended to include a petition for termination. K.P.M., ¶ 7. The custodial natural parent was not named as a party. Because we conclude that Mother has standing to seek termination of Father’s rights in this proceeding, we do not address whether Grandfather independently would have standing to petition for termination.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 The Ninth Judicial District Court, Glacier County, entered an order terminating the parental rights of the birth father (Father) to his three minor children, K.A., A.A., and A.A. Father appeals the District Court’s decision. We affirm, and address the following restated issue on appeal: ¶2 Did the District Court err in terminating Father’s parental rights ? PROCEDURAL AND FACTUAL BACKGROUND ¶3 The subject family consists of Father, the birth mother (Mother), and three minor children, ages seven, two and one, respectively, at the time of removal. Concerns were initially raised regarding this family in early 2013, when the Department of Public Health and Human Services (DPHHS or Department) received anonymous reports about the parents using methamphetamines “as often as they can get their hands on it,” and reports of physical violence in front of the children. Stephanie Moran (Moran), a social worker, met with the oldest child, K.A., at school on March 7, 2013. K.A. appeared to be clean and adequately dressed, and spoke highly of his parents, but mentioned that the family had moved a lot and that his father had lost his job. Moran reviewed K.A.’s school attendance record, and found that he had a significant number of absences and tardies. K.A. explained to Moran that his mother was not waking up in time to get K.A. off to school. ¶4 Moran again met with K.A. at school on March 26,2013, and K.A. told the case worker that he had not eaten breakfast that day because there was very little food in the home, and he wasn’t sure he was going to eat dinner that night. K.A. also described physical violence between his parents, but denied that Father was physically violent towards him. During this interview, Moran noted with some concern that K.A.’s clothes were dirty and that his shoes had no soles on them and appeared to be falling apart. ¶5 On the same day, Moran made contact with Mother. The family was living in a motel room at this point and Moran observed only ajar of peanut butter and a can of chili on top of the refrigerator, and only bottled water in the refrigerator. Mother told the case worker that the family was out of money and out of public assistance funds until after the first of the month. Later that day, Moran returned to the motel room to meet with both Mother and Father, and questioned both parents about reports of their drug use. Both parents admitted to using methamphetamine within the past two months, and Father admitted to current use of cannabis and alcohol. When Moran asked, both parents agreed to submit to a urinalysis (UA) test that afternoon. When neither parent showed up for the scheduled UA, Moran returned to the motel. ¶6 No one answered the door when Moran knocked, although she knew the family was at home because she had seen K.A. arrive there from school, and she could hear the television and a baby crying from within the room. Fearing for the children’s well-being, and due to the lack of cooperation by the parents, Moran contacted law enforcement, who eventually forced open the door to the motel room. Once inside, Moran informed the parents that she was removing the children. Moran testified that Father became very upset, “bouncing all over” the motel room, yelling and screaming with his hands raised. Moran believed that Father’s behaviors were consistent with being under the influence of methamphetamine. All three children sat on the bed next to their mother, crying. Backup law enforcement officers were called to the scene; at one point the officers pulled out their Tasers to prevent a physical altercation with Father when he stood on the bed. Moran and law enforcement removed the children from the premises. ¶7 The next day, Father had been arrested on a charge of disorderly conduct arising out of an incident separate from removal of the children, and was unavailable for a UA. Mother submitted to a UA that day and tested positive for cannabis, methamphetamine, and Ecstasy. On April 2,2013, DPHHS filed a petition seeking emergency protective authority, adjudication of the children as youth in need of care, and temporary legal custody. Attached to the petition was Moran’s affidavit, which averred that Father and Mother did not have the resources to meet the basic needs of their children, that both parents were violent and aggressive, and that both parents were currently unable or unwilling to perform parental duties and responsibilities. The District Court promptly granted emergency protective custody, and an adjudicatory hearing was held on April 17. ¶8 At the hearing, Moran provided testimony concerning the above facts to the District Court. She added that Mother had failed to appear for UAs on two separate occasions since the children were removed, but that Mother and Father had provided a UA on April 6, 2013, and both tests were negative for illegal substances. Father testified that he and Mother had never used drugs in front of the children, that he had never physically abused Mother or the children, and that at the time the children were removed, there had been food in the freezer in the motel room. However, the District Court found that both parents had failed to take drug tests when requested, failed to provide for the basic needs of the children, abused the children by using illegal drugs, specifically methamphetamine, neglected to have K.A. attend school regularly, and that returning the children to the home would place them in unreasonable risk of harm. The court adjudicated all children as youths in need of care, granted temporary legal custody to DPHHS, and ordered that treatment plans be developed. ¶9 On June 4, 2013, the District Court signed treatment plans for both Mother and Father, each of which stated a primary goal of reunifying the children with their parents. At the time the plans were signed, Mother had engaged in initial services, but Father had not. The plan required Father to obtain a chemical dependency evaluation and follow all recommendations of that evaluation, and listed as a specific goal to maintain sobriety for “a period of six months.” In addition, the Treatment Plan required Father to obtain individual counseling to address mental health issues, to complete parenting and anger management classes, and to stay in regular contact with Moran. ¶10 In early August 2013, DPHHS placed the children with Mother, who was then living with her parents, for a trial home visit. Since that date, the children have remained with Mother. In October 2013, DPHHS filed a petition to extend temporary legal custody of the children for another six months in order to allow the parents more time to complete their treatment plans. At that point, Father had completed in-patient treatment at Montana Chemical Dependency Center, but had not yet begun out-patient treatment, mental health counseling, or parenting and anger management classes. Upon a stipulation of all the parties, the District Court granted an order extending temporary legal custody for another six months. ¶11 In April 2014, DPHHS again requested an extension of temporary legal custody, given developments in the case, and a hearing was held in May 2014. Moran testified that, although Father had completed his chemical dependency evaluation, was participating in classes again (after having stopped for a period of time), and had completed anger management and parenting classes, he had returned to using alcohol. He was arrested for fighting at a bar and creating a disturbance in April 2014, and had brought “turmoil within the home.” Father “went back to the home knowing that he had just been arrested,” causing the District Court to express concerns about his drug and alcohol use and for the family’s safety. Because Father and Mother were living together at this point with the children, Moran expressed concern about turmoil in the home and Mother’s ability to display her protective capacity, concluding that DPHHS wanted additional time to monitor the family situation. Moran reported that Mother had made progress in her Treatment Plan, but that DPHHS still had some lingering concerns, specifically, that while Mother displayed that she was able to recognize threats to her and her children, a question remained about whether Mother was able to actually assert her protective role. The District Court granted DPHHS’ petition, noting the family had made progress, but that DPHHS still had reason to be involved, especially in light of Father’s recent setbacks in treatment. The results of Father’s recent UA had not yet been returned, and Moran testified that if the UA was positive, the Department believed Father should live separately from the family. The District Court stated that Father had made a serious mistake in continuing to consume alcohol but that, before the Department could remove the children or either parent from the home, the court would conduct an emergency hearing. ¶12 DPHHS received the results of Father’s drug test on June 19, 2014, which indicated that he had been using alcohol, methamphetamine, and amphetamines. Days later, DPHHS filed an expedited motion requesting that the District Court order Father to move from the family residence. The District Court held a hearing on July 2 and Father testified that he had been taking cold medication at the time of the drug test, and had not used methamphetamine, to which the District Court responded: I don’t believe you. Point blank. I don’t believe that you didn’t use methamphetamines, I think you got up here and lied. I am just gonna say it point blank. I think that’s what you did. The Court would have had a much easier time with being less restrictive if you had owned your actions, took responsibility and tried to do something to prevent it from happening again and that’s not what I heard. Despite testimony that Father had already moved out of the house, the District Court ordered that Father live separately from the family until further order of the court, and that the visits between him and the children be supervised. The District Court also ordered that Mother begin work on a supplemental treatment plan, focusing on obtaining financial independence from Father, before the next hearing. ¶13 A week later, on July 9, 2014, Father showed up at the family residence intoxicated. When Mother asked him to leave, he refused. Mother called police to remove Father from the premises, reporting that, while Father was not physically violent, she wanted him removed. Mother did not advise police that Father was there in violation of a court order. Father left the premises before police were able to make contact with him. ¶14 Mother filed an objection to the supplemental treatment plan and a motion to dismiss the proceeding on August 18,2014. At a hearing in September 2014, the drug testing agency testified that it was having problems obtaining drug tests because Father was evading the testing. Testimony was also taken that Father had been unsuccessfully discharged from his out-patient chemical dependency treatment program, had failed to stay in contact with DPHHS, had failed to notify DPHHS of his address changes, and had stopped participating in his treatment plan at all. The District Court continued the restriction on Father living in the family residence, and also took Mother’s motion to dismiss under advisement. ¶15 DPHHS filed its own motion to dismiss in November 2014. DPHHS’ motion sought to dismiss the case as to both Mother and Father, but to place continuing restrictions on Father, specifically, prohibiting Father from unsupervised contact with his children until he had completed UA testing, mental health treatment, and chemical dependency treatment. DPHHS’ motion stated that only Mother had met the “minimum standards for appropriate parenting at this time.” ¶16 Mother and Father responded by filing objections to any continuing restrictions upon Father and a joint motion to dismiss the proceeding as against both of them, relying on Mother’s progress under her treatment plan. Mother and Father argued that “mother has demonstrated she can adequately protect the children,” “the children are safe,” and “it is therefore illogical to argue that additional restrictions are needed to protect the children.” In its reply, DPHHS requested that, alternatively, if the District Court did not grant its motion to dismiss against Mother and impose restrictions upon Father, that the District Court grant DPHHS leave to pursue termination of Father’s parental rights. Stating that it lacked authority to impose continuing restrictions upon the parties after dismissal, the District Court granted leave for DPHHS to petition the court for termination of Father’s parental rights, which it did. ¶17 The District Court conducted a hearing on the petition for termination of Father’s parental rights in January 2015. Father was represented by counsel but did not attend the hearing. Moran testified to the Department’s concerns with Father, including his unaddressed chemical dependency, including his positive testing for alcohol and methamphetamines, his lack of compliance with his court-ordered treatment plan, his complete disengagement from services, and his lack of any contact with the Department since September of 2014. ¶18 In terminating Father’s parental rights, the District Court found that Father had completed several treatment plan tasks, but that “the treatment plan has not been successful in addressing birth father’s issues with chemical dependency and mental health which led to the children’s removal in this matter.” Also noting that Father “stopped participating in Department services over seven months ago and failed to attend the hearing despite having notice,” the District Court reasoned that Father’s condition was “unlikely to change within a reasonable time” based on his unresolved chemical dependency and mental health issues, and that continuation of the parental relationship would likely result in continued abuse or neglect of the children, concluding that Father’s behavior “convinces the Court that continuation of the parent-child legal relationship is not in the children’s best interests.” The District Court granted DPHHS’ motion to dismiss with respect to Mother. Father appeals. STANDARD OF REVIEW ¶19 This Court reviews a district court’s decision to terminate parental rights for an abuse of discretion. In re E.Z.C., 2013 MT 123, ¶ 19, 370 Mont. 116, 300 P.3d 1174 (citing In re T.W.F., 2009 MT 207, ¶ 17, 351 Mont. 233, 210 P.3d 174). A district court abuses its discretion when it acts arbitrarily, without employment of conscientious judgment, or in excess of the bounds of reason, resulting in substantial injustice. This Court will not disturb a district court’s decision on appeal unless “there is a mistake of law or a finding of fact not supported by substantial evidence that would amount to a clear abuse of discretion.” We review a district court’s findings of fact to determine whether they are clearly erroneous and its conclusions of law to determine whether they are correct. In re T.S., 2013 MT 274, ¶ 21, 372 Mont. 79, 310 P.3d 538 (quoting In re D.B., 2012 MT 231, ¶ 17, 366 Mont. 392, 288 P.3d 160) (internal citations omitted). ¶20 The question of whether a district court properly denied a motion to dismiss is a conclusion of law, which this Court will review de novo to determine if the court’s interpretation and application of the law are correct. In re L.V.-B., 2014 MT 13, ¶ 12, 373 Mont. 344, 317 P.3d 191 (“We review de novo a district court’s decision on a motion to dismiss.”). DISCUSSION ¶21 Did the District Court err in terminating Father’s parental rights ? ¶22 Father argues that the District Court’s decision to terminate his parental rights was in error, citing his bond with the children, his ability to support the family, and the absence of evidence that he put his children at risk. He argues the termination of his parental rights was not in the best interest of his children, and that the District Court erred by not dismissing the case. ¶23 Pursuant to § 41-3-609(l)(f), MCA, termination of the parent-child legal relationship may be ordered upon a finding that the child is an adjudicated youth in need of care, and 1) an appropriate treatment plan that has been approved by the court has not been complied with by the parent, or has not been successful; and 2) the conduct or condition of the parent rendering the parent unfit is unlikely to change within a reasonable time. ¶24 Under this statute, Father first contests the adjudication of the children as youths in need of care (YINC). Section 41-3-102(34), MCA, defines a YINC as “a youth who has been adjudicated or determined, after a hearing, to be or have been abused, neglected, or abandoned.” Section 41-3-102(7)(a), MCA, further provides that “child abuse or neglect” is defined as “(i) actual physical or psychological harm to a child; (ii) substantial risk of physical or psychological harm to a child; or (iii) abandonment.” We review a district court’s conclusion of law for correctness. See In re T.S., ¶ 21. The District Court found after the adjudication hearing that Mother had tested positively for methamphetamine, cannabis, and Ecstasy, both parents had failed to provide UAs upon request, both parents had admitted to using illegal drugs, the parents were failing to meet their children’s basic needs, and that the parents were not ensuring that K.A. attended school on a regular basis. These findings were supported by substantial evidence and the children were properly adjudicated as YINC, as the District Court correctly noted several conditions that would have placed the children in substantial risk of physical or psychological harm. ¶25 Regarding compliance with and successful completion of a treatment plan under § 41-3-609(l)(f)(i), MCA, Moran testified at the termination hearing that, although Father completed in-patient chemical dependency treatment, he had been dismissed from outpatient chemical dependency treatment for lack of participation, thereafter tested positive for methamphetamines and alcohol, failed to maintain sobriety, and failed to complete his mental health tasks. There was substantial evidence to support the District Court’s factual finding and conclusion of law that “the majority of his plan was not complied with” and “has not been successful.” Indeed, Father concedes in his briefing that he did not complete his court-ordered plan. ¶26 Regarding whether Father’s conduct or condition rendering him unfit is unlikely to change within a reasonable time, § 41-3-609(l)(f)(ii), MCA, Moran testified that, “[a]t this time the Department’s been involved with these children for over 15 months. We have not seen behavioral changes from [Father]. So it’s in the children’s best interest for permanency.” The Court Appointed Special Advocate (CASA) submitted a report to the District Court, stating, “I regret that this action has to be taken with [Father]. I feel that the court has been given no choice but to terminate his rights.... [Father] is the one losing out by not complying to[] the rules and not completing his requirements.” The record demonstrates that Father was engaging in the same kind of behaviors over a year after the treatment plan was implemented as he was when the children were originally removed from his care. At times he was blatantly resistant to the Department and with his treatment goals and, as the District Court found, deceptive about his behavior. As we have stated on multiple occasions, “[W]e do not have a crystal ball to look into to make this determination, so it must, to some extent, be based on a person’s past conduct.” In re M.A.E., 1999 MT 341, ¶ 37, 297 Mont. 434, 991 P.2d 972 (citing In re C.A.R., 214 Mont. 174, 187, 693 P.2d 1214, 1221 (1984)). The record of Father’s behavior provides abundant support for the District Court’s conclusion that “[t]he conduct or condition of birth father is unlikely to change within a reasonable time based on his unresolved mental health and chemical dependency issues.” The District Court’s conclusion that continuation of the parent child legal relationship will likely result in continued abuse or neglect was supported by the evidence of Father’s conduct over the 15 months of the proceeding. Perhaps testimony crucial to establishing Father’s potential to change his conduct within a reasonable time would have come from Father himself; however, he did not participate in the termination hearing. In terminating Father’s parental rights, the District Court clearly did not abuse its discretion. “A child’s need for a permanent placement in a stable, loving home supercedes [sic] the right to parent a child.” In re Custody & Parental Rights of D.A., 2008 MT 247, ¶ 21, 344 Mont. 513, 189 P.3d 631. ¶27 Finally, Father contends that the District Court should have dismissed this case when “requested to do so by the parents and by DPHHS.” He argues that both Mother’s motion to dismiss, and the parents’ joint motion, met the statutory criteria for dismissal, as evidenced by DPHHS’ own motion to dismiss. Section 41-3-424, MCA, provides, in pertinent part, that the court shall dismiss an abuse and neglect petition if all the following criteria are met: (1) a child who has been placed in foster care is reunited with the child’s parents and returned home; (2) the child remains in the home for a minimum of 6 months with no additional confirmed reports of child abuse or neglect; and (3) the department determines and informs the court that the issues that led to department intervention have been resolved and that no reason exists for further department intervention or monitoring. Section 41-3-424, MCA. In its motion to dismiss, DPHHS expressed its continuing concerns regarding Father’s issues that led to its original intervention with this family, asking either for restrictions to be placed on Father’s visitation, or alternatively, that DPHHS be granted leave to petition to terminate Father’s parental rights. The District Court recognized these continuing concerns, and correctly denied the motions to dismiss for not satisfying the statutory criteria. The District Court ultimately granted DPHHS’ motion as to Mother, but only in conjunction with terminating Father’s parental rights, as that action resolved the need for further intervention with Father or for placement of restrictions upon his interaction with the family. ¶28 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES BAKER, SHEA, COTTER and WHEAT concur.
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JUSTICE WHEAT delivered the Opinion of the Court. ¶1 Pamela Dee Volk appeals from the Summary Judgment Order of the Montana Eighth Judicial District Court granting summary judgment for Valerie Goeser. The District Court determined that a constructive trust should not be imposed on $2,306,103.13 of Roy Volk’s life insurance proceeds for the benefit of his minor son, RBV, because Valerie Goeser was not unjustly enriched when she received Roy Volk’s life insurance proceeds. We reverse the summary judgment and remand for further proceedings in accordance with this opinion. ISSUE ¶2 Appellant raises one issue on appeal, which we address as follows: ¶3 Whether the District Court erred when it granted summary judgment to Valerie, and denied the imposition of a constructive trust on life insurance proceeds in favor of RBV, a minor child? FACTUAL AND PROCEDURAL BACKGROUND ¶4 Roy Volk was married to Pamela Dee Volk in April 1996. The couple had a son, RBV, in the fall of 2000. On June 25, 2010, Roy filed a Petition for Dissolution of Marriage in the Montana Eighth Judicial District Court. On the same day, as part of the dissolution proceeding, the District Court issued the statutorily-mandated Summons and Temporary Restraining Order. The divorce proceedings lasted over a year and a half, ending with the court’s hearing and dissolution of the marriage on December 21, 2011. ¶5 Roy and Pamela entered into a Marital Settlement Agreement (“MSA”) on December 20, 2011. Several agreements were included as part of the MSA including a “Future Instruments” clause where Roy agreed “[h]usband shall execute a will naming his son as beneficiary of his estate, giving all of his assets to his son.” This clause included Roy’s agreement to leave all of his assets to RBV through a will that would be executed as a “future document.” Attached to the MSA as exhibit A, was a list of assets and liabilities for each party where Roy indicated that “[hjusband’s New York Life insurance policy” (Policy 936) was an asset. The MSA further provided that if either husband or wife failed to disclose an asset, “that finding is presented to be grounds for the Court, without taking into account the equitable division of the marital estate, to award the undisclosed asset to the opposing party ....” ¶6 At the time of the divorce, Roy owned two term life insurance policies. The policies are New York Life Policy No. 46689799 (“Policy 799”) with a benefit of $1,500,000; and New York Life Policy No. 76098936 (“Policy 936”) with a benefit of $1,000,000. Policy 799 was not disclosed in the divorce; Pamela was the sole beneficiary, but she was not aware the policy existed. Roy disclosed Policy 936 in the divorce, and Pamela and Volk Sand and Gravel (Roy’s business) were equal beneficiaries (50 percent to each) with a $200,000 collateral assignment to Stockman Bank. On July 15, 2010, while the restraining order was in effect, Roy changed the beneficiary designations on both policies and designated his sister, Valerie Goeser, as the new beneficiary. ¶7 Roy also had a daughter, Saraya Roberson. In June of 2005, Roy and Saraya’s mother, Serena C. Roberson, entered into a Child Support Agreement pertaining to Saraya. That agreement contained a provision requiring Roy, within 30 days of the court’s Order approving the agreement, to purchase a life insurance policy of $100,000 naming Saraya as the owner and sole beneficiary. The Child Support Agreement was approved and adopted by the Montana Eighth Judicial District Court on July 28,2005. Roy never purchased the life insurance policy required by this Agreement, nor did Roy name Saraya as a beneficiary on any life insurance policy. ¶8 On April 30, 2012, just over four months after the divorce was final, Roy died unexpectedly at age 45. Roy did not have a will in place. Because Roy had changed his life insurance beneficiary designations in violation of the restraining order, Valerie received the life insurance proceeds from both policies in the total amount of $2,306,103.13. Valerie was shocked to learn upon Roy’s death that she was the recipient of the two life insurance policies. Valerie invested the proceeds in a home and real property in Newport Beach, California. ¶9 After Roy’s death, Pamela discovered that Valerie received the life insurance proceeds from Policy 936, due to Roy’s change of beneficiary during the divorce. Pamela wrote Valerie to inquire about the policy and notify her of RBV’s equitable claim. Valerie did not respond to the inquiry and Pamela subsequently sent a subpoena duces tecum to New York Life to determine how the policy benefit was dispersed. At that time she discovered the existence of the second life insurance policy, Policy 799, with the $1,500,000 benefit. Pamela also determined through discovery that she was the beneficiary on Policy 799 until Roy changed it to Valerie on July 15, 2010, while the restraining order was in effect. The New York Life records confirmed that both policies were paid to Valerie. ¶10 A probate was opened to settle Roy’s estate. Pamela filed two creditor’s claims in the probate on October 23, 2012. The first claim was on her behalf for payment Roy had agreed upon, and the second was on behalf of RBV for child support and health insurance costs totaling about $77,500. Roy’s estate did not have sufficient funds to pay RBV’s child support claim. On April 29, 2013, Pamela, on behalf of RBV, filed this action against Valerie and Roy Craig Volk’s estate seeking a constructive trust over the insurance policy payouts for the benefit of RBV. The complaint named Saraya, as co-personal representative of Roy’s estate, as a defendant. Pamela also filed two additional actions in April 2013 that are not part of this appeal: an action to reopen the dissolution for award of the policy proceeds due to violation of the restraining order, and another similar action to seek policy proceeds through the probate. While Valerie was notified of Pamela’s equitable claim on RBV’s behalf, she was not served in the dissolution or probate actions. ¶11 Judge Neill of the Montana Eighth Judicial District presided over all three of the actions tied to this case: Roy and Pamela’s dissolution, the probate of Roy’s estate, and here, Pamela’s claims requesting a constructive trust for RBV. The three actions have significant overlap regarding parties, claims, and the equities of the case. This appeal arises out of the District Court’s grant of summary judgment in Valerie’s favor regarding Pamela’s constructive trust claims for RBV. ¶12 Saraya filed a cross-appeal seeking imposition of a constructive trust for her benefit to fulfill the $100,000 liability. Subsequently, and by admission of both parties, Saraya and Pamela entered an agreement (“October Agreement”) under which Pamela would pay Saraya’s claim from RBV’s constructive trust if RBV prevails on his claims against Valerie. District Court Opinion ¶13 By May 2014, both parties moved for summary judgment. On May 16, 2014, Saraya sought leave from the District Court to file an Amended Answer and to assert cross-claims against Valerie. Several additional motions were made in the case, which were held in abeyance while the District Court considered the pending summary judgment motions. The District Court held hearings on both summary judgment motions. The court entered summary judgment in favor of Valerie on October 30, 2014. At that time the court also denied Saraya’s motion for leave to amend. Pamela and RBV timely appealed on November 19, 2014. Saraya timely appealed on December 8, 2014. ¶14 The District Court granted summary judgment to Valerie on all claims. The court concluded that even though Roy had changed the beneficiary designation on both policies while the court’s restraining order was still in effect, the case was different from this Court’s decision in Briese v. Mont. Pub. Employees Ret. Bd., 2012 MT 192, 366 Mont. 148, 285 P.3d 550, because Roy died after the divorce was final and the restraining order was lifted. The District Court reasoned the purpose of the restraining order is to maintain the status quo in regard to the parties’ property so long as the dissolution action is pending — a purpose that terminates once the dissolution action is complete. The court further reasoned that once the restraining order was lifted, Roy would have been free to change the beneficiary at any time. The court found had he not changed the beneficiaries, Pamela still would have been removed as a beneficiary by operation of law under § 72-2-814, MCA. Under this analysis, the court concluded that equity did not require voiding Roy’s changes to the beneficiaries because Roy made no further changes after the dissolution. ¶15 The court rejected Pamela’s argument that because Roy disclosed Policy 936 as an asset in the MSA he considered his insurance policies to be assets and therefore intended RBV to be the beneficiary. The court found, however, that neither the MSA nor the stipulated final parenting plan made any mention of life insurance policies and the MSA only required that Roy create a will and name RBV as the beneficiary of his estate (which Roy failed to do during the four months following the MSA). The court concluded that an insurance policy is a non-probate transfer and would pass outside of any will Roy had executed; thus, Roy’s will would not have affected the insurance policies. Considering the intent of the parties and the language of the MSA, the court then concluded that the term “assets” clearly refers to Roy’s testamentary estate, not specifically including the life insurance policies. ¶16 The District Court also rejected Pamela’s argument that she should be awarded the proceeds of the second, undisclosed policy. The court agreed with Pamela that Roy should have disclosed the policy as an asset in the marital estate. Still, the court did not award the proceeds to Pamela on the basis that the term life policy does not receive any value until the holder’s death. The court reasoned that marital property is valued at the time of the divorce proceedings, and thus the court could not take into account the policy’s $1.5 million proceeds because they materialized only after Roy died, months after the divorce was finalized. Therefore, Roy’s nondisclosure of the second policy, even if a violation of the MSA, had no monetary effect on the value of the marital estate. The court concluded that the parties did not discuss insurance specifically in the MSA so it would be speculative for the court to say what effect the disclosure of the policy might have had on the parties’ negotiations. ¶17 Finally, the District Court rejected Pamela’s contention that Valerie had been unjustly enriched and that a constructive trust must be imposed. Accordingly, the District Court declined to award summary judgment and equitable relief to Pamela. STANDARD OF REVIEW ¶18 We review the grant of summary judgment de novo, using the same M. R. Civ. P. 56 criteria used by the district court. Albert v. City of Billings, 2012 MT 159, ¶ 15, 365 Mont. 454, 282 P.3d 704. Summary judgment is appropriate when the moving party demonstrates both the absence of any genuine issues of material fact and entitlement to judgment as a matter of law. Albert, ¶ 15. Once the moving party has met its burden, the non-moving party must present substantial evidence essential to one or more elements of the case to raise a genuine issue of material fact. Styren Farms, Inc. v. Roos, 2011 MT 299, ¶ 10, 363 Mont. 41, 265 P.3d 1230. We further review a question of law to determine if the district court’s legal conclusions are correct. Palmer v. Bahm, 2006 MT 29, ¶ 11, 331 Mont. 105, 128 P.3d 1031. ¶19 The standard of review governing proceedings in equity is codified at § 3-2-204(5), MCA, which directs the appellate court to review and determine questions of fact as well as questions of law. Gitto v. Gitto, 239 Mont. 47, 50, 778 P.2d 906, 908 (1989). We review a district court’s findings of fact to ascertain whether they are clearly erroneous. Daines v. Knight, 269 Mont. 320, 324, 888 P.2d 904, 906 (1995). A finding is clearly erroneous if it is not supported by substantial evidence, if the trial court misapprehended the effect of the evidence, or if our review of the record convinces us that the district court made a mistake. Kovarik v. Kovarik, 1998 MT 33, ¶ 20, 287 Mont. 350, 954 P.2d 1147. DISCUSSION ¶20 Section 40-4-101, MCA, provides that Montana’s law concerning separation and dissolution of marriage: shall be liberally construed and applied to promote its underlying purposes, which are to: (1) strengthen and preserve the integrity of marriage and safeguard family relationships; (2) promote the amicable settlement of disputes that have arisen between parties to a marriage; (3) mitigate the potential harm to the spouses and their children caused by the process of legal dissolution of marriage', and (4) make reasonable provision for spouse and minor children during and after litigation .... Section 40-4-101, MCA (emphases added.) ¶21 In an effort to support these goals and promote a proper and amicable settlement, the District Court entered the statutorily-mandated restraining order in the dissolution proceeding, stating: Petitioner and Respondent are both hereby restrained as follows under the authority of § 40-4-121(3), MCA, 2009: 3. Petitioner and Respondent are hereby restrained from cashing, borrowing against, canceling, transferring, disposing of, or changing the beneficiaries of any insurance or other coverage, including life, health, automobile, and disability coverage held for the benefit of a party or a child of a party for whom support may be ordered. ¶22 This Court previously addressed the issue of changing beneficiaries under a restraining order in our decision in Briese, The dispute in Briese surrounded a retirement benefit beneficiary change made by a Yellowstone County deputy sheriff after a § 40-4-121(3), MCA, restraining order had been issued in conjunction with his petition for dissolution of marriage. While the marital dissolution proceedings were still pending with the restraining order in place, and without consent of his wife or the court, Briese changed his retirement beneficiary designation from his wife Erene, to his two minor children. The change of beneficiary was discovered after Briese died in the line of duty, while the dissolution proceedings were pending. We determined the change of beneficiary was invalid because it was made in violation of the statutorily-mandated restraining order. ¶23 We reasoned that “[t]he purpose of the law requiring a temporary restraining order is clearly to maintain the status quo with respect to all property of the parties.” Briese, ¶ 25. We stated that this policy is in place to “[mitigate] the potential harm to spouses and children caused by the dissolution process itself and ensure that reasonable provision is made for the spouse and children during the litigation.” Briese, ¶ 25. Further, we determined that “[t]he plain language of subsection (b) is quite broad, restraining both parties from unilaterally ‘changing the beneficiaries of any ... coverage ... held for the benefit of a party.’ ” Briese ¶ 25 (quoting § 40-4-121(3)(b), MCA) (emphasis added). In plain terms, the restraining order serves as a protective umbrella over all marital assets while the parties negotiate an MSA or proceed with litigation. If agreement is reached on division of property, the parties’ agreements are incorporated in the MSA, the new contract between the parties. Then, with the MSA in place, the restraining order can be dissolved upon entry of the decree, and the MSA guides any further asset divisions and responsibilities of the parties. ¶24 As we determined in Briese, the remedy for restraining order violations in most cases is a “civil or criminal contempt action against the violator.” Briese, ¶ 38. This remedy was not available in Briese because, similar to this case, the violator was deceased. In Briese, we reviewed the approaches used by other jurisdictions to solve this problem. Of note was our recognition of the Michigan Supreme Court position: It needs no citation that for violation of an injunction, a court, under its general powers, may order a return to the status quo .... Transfers of property in violation of an injunction are invalid and may be set aside ... and subsequent death of the injunction violator does not prevent the court from exercising such power. Briese, ¶ 39 (citing Webb v. Webb, 375 Mich. 624, 134 N.W.2d 673, 674-75 (Mich. 1965)). ¶25 In Briese, we determined that violation of a dissolution proceeding restraining order does not automatically void the beneficiary change. Briese, ¶ 40. Nonetheless, we found that the courts, at a minimum, possess “equitable power to order a return to the status quo when a party violating a temporary restraining order has died.” Briese, ¶ 41. We look to our precedent in Briese and to the statutes as we turn to the facts in this case. Roy’s Improper Change of Beneficiary on Policy 936 ¶26 On appeal, Pamela argues that the District Court erred in this case and abused its discretion when it determined that the violation of the restraining order had no actual effect on the beneficiary change and that the equities were not in favor of a constructive trust for RBV. She further argues that equity requires the proceeds received by Valerie must be placed in a constructive trust for RBV. Pamela also asserts that Roy’s June 25, 2010, violation of the restraining order cannot be excused by the District Court. She further contends that even though Roy changed the beneficiary designation to his sister Valerie, he did not intend his violation to control the ultimate disposition of his life insurance. Instead, she argues that the evidence demonstrates that Pamela and Roy always thought of Roy’s life insurance as an asset and Roy intended to leave it, with all of his assets, to RBV. Pamela implies that Roy simply did not have his affairs in the order he would choose when he unexpectedly died and that if he had the opportunity, he would have set the affairs according to their MSA. ¶27 Valerie defends the District Court’s equitable determination. She argues that because life insurance proceeds pass outside the testamentary estate, the life insurance contract was properly executed. She also contends that the MSA and Final Parenting Plan fail to mention any agreement or intention to name a particular beneficiary. She notes that Roy, during the four months before his death after the divorce, could have changed the beneficiary to any person of his choosing. Instead, he retained Valerie as the beneficiary on Policy 936, which should be considered his final intention. ¶28 Roy purchased Policy 936 on May 16, 2002, with a $665 down payment. The policy originally listed Volk Sand & Gravel as the beneficiary. On August 9, 2002, Roy changed the original beneficiary with fifty-percent to Pamela and with the other fifty-percent to Volk Sand & Gravel. Roy also included a “second beneficiary” of “Estate of Roy C. Volk.” On August 22, 2002, Roy made a collateral assignment on the policy with Stockman Bank, “up to $500,000” which apparently, based upon the record, was valued at approximately $200,000 at the time of his death. During the dissolution, with the statutorily-mandated restraining order in place, Roy changed the beneficiary on this policy to his sister Valerie, as sole beneficiary. ¶29 Roy’s beneficiary change resulted, upon his death, in the payment of this life insurance policy, less the Stockman Bank assignment, to his sister Valerie. If Roy had not changed the policy, his wife Pamela would have remained on the policy throughout the pendency of the divorce. As the District Court pointed out, upon finalizing the dissolution, Pamela would have been removed from the policy by operation of law pursuant to Montana’s Uniform Probate Code, § 72-2-814(2)(a)(i), MCA, which states: (2) Except as to a retirement system established in Title 19 or as provided by the express terms of a governing instrument, a court order, or a contract relating to the division of the marital estate made between the divorced individuals before or after the marriage, divorce, or annulment, the divorce or annulment of a marriage: (a) revokes any revocable: (i) disposition or appointment of property made by a divorced individual to the individual’s former spouse in a governing instrument and any disposition or appointment created by law or in a governing instrument to a relative of the divorced individual’s former spouse; Under the statute “revocable” is defined as: “Revocable,” with respect to a disposition, appointment, provision, or nomination, means one under which the divorced individual, at the time of the divorce or annulment, was alone empowered, by law or under the governing instrument, to cancel the designation in favor of the individual’s former spouse or former spouse’s relative, whether or not the divorced individual was then empowered to designate the divorced individual in place of the individual’s former spouse or in place of the former spouse’s relative and whether or not the divorced individual then had the capacity to exercise the power. Section 72-2-814(1)©, MCA. The Official Comments to the statute provide further specificity regarding the types of revocable instruments: The revisions expand the section to cover “will substitutes” such as revocable inter-vivos trusts, life-insurance, and retirement-plan beneficiary designations, transfer-on-death accounts, and other revocable dispositions to the former spouse that the divorced individual established before the divorce (or annulment). Tit. 72, Ch. 2, Mont. Code Ann., Annotations, Official Comments at 635 (2012) (see also Thrivent Fin. v. Andronescu, 2013 MT 13, 368 Mont. 256, 300 P.3d 117). ¶30 We determined in Thrivent that this revocation-upon-divorce statute operates at the time the “governing instrument is given effect” and the provision is to be treated as if the “divorced individual’s former spouse (and relatives of the former spouse) disclaimed the revoked provisions[.]” Thrivent, ¶ 8. Or, more simply, when the divorce is final between the parties, any designation (such as a life insurance beneficiary) by the divorced individuals of their former spouse is automatically revoked upon divorce. ¶31 Turning to Roy’s Policy 936, the effect of not removing Pamela as the beneficiary, or retaining the status quo, would have caused her share of the policy proceeds to pass to Roy’s estate under § 72-2-814, MCA. Because Roy had no will, after the proceeds passed to the estate they subsequently would have passed to Roy’s children in the probate by way of the intestacy statutes. Section 72-2-113, MCA. We note that in the MSA, the parties list Policy 936 as an asset. The MSA also indicates Roy’s intent to name RBV as the beneficiary of his estate specifically indicating Roy will leave RBV all of his assets. The status quo prior to Roy’s improper change — had the restraining order not been violated — would have accomplished that end. ¶32 Here, Valerie argues the status quo was unaffected because the restraining order had already been lifted by the time Roy died, so there is no harm. The argument however, overlooks the statute’s purpose to protect the status quo at the time the statutorily-mandated restraining order is entered. It is misdirected, in addition to being speculative, to say that Roy could or would have changed the beneficiary after the dissolution anyway, because the policy of the law is to preserve the status quo, protect the spouse and the children, and to promote an amicable settlement. In addition, the evidence indicated that Roy — not anticipating that he would die within months — did not have his affairs in order. Roy’s disheveled affairs include failures to execute documents required in his parenting actions with both Pamela and his former partner, Serena. Ultimately, it is speculative of Valerie to argue that Roy would have changed the beneficiary to Valerie after the divorce — when it would have been legal to do so — particularly where both of his parenting agreements required him to ensure support for his children and he failed to do so. Roy’s Failure to Disclose Policy 799 and Improper Change of Beneficiary ¶33 Roy purchased Policy 799 on February 14,2000, with a $924 down payment. Pamela Volk was the sole beneficiary from the inception of this policy until the couple’s dissolution proceeding. During the dissolution, with the statutorily-mandated restraining order in place, Roy changed the beneficiary on this policy to his sister Valerie, as sole beneficiary. Pamela was never aware of the policy and he did not disclose the policy during the dissolution proceeding. ¶34 In its determination regarding Policy 799, the District Court found that Roy failed to disclose the existence of the policy in the MSA, but determined this failure had no effect on the value of the marital estate because, as a term policy, it had no value until Roy died. The parties make numerous arguments regarding Roy’s failure to disclose the policy. Pamela argues the District Court improperly relied on “value” in its equitable determination because she and Roy considered Roy’s life insurance an asset. She argues that Roy violated Paragraph 20 of their MSA by not disclosing the policy, which is grounds for the court to award it to her, and that it should be placed in trust for RBV. Pamela claims that the failure to disclose the policy unfairly affected negotiations in the dissolution. Valerie argues that any failure to disclose property under § 40-4-253, MCA, provides only a presumption that the property can be awarded to the other party. She contends that the District Court properly exercised discretion in declining to re-open and change the settlement. Valerie also argues that the policy was never part of the estate, because the insurance passes outside the estate, and that resolution of the policy is solely a contract issue. ¶35 The District Court concluded that Roy “likely should have disclosed Policy 799 as an asset in the marital estate.” The court noted that the restraining order statute, § 40-4-121, MCA, prohibiting beneficiary changes, bolsters this argument. The District Court found that the failure to disclose analysis is properly raised in a dissolution proceeding; nonetheless, the District Court possesses further authority under the contractual terms of the MSA to determine whether failure to disclose is grounds for award of the property or benefit to the other party. In the Order, the District Court determined that the policy had zero value at the time of the dissolution and, because there was no value in the policy, the court could not determine what impact disclosure might have had on the MSA. The court concluded, under this analysis, that any remedy would only be based on speculation of how proper disclosure may have changed the MSA. ¶36 However, we determine that whether the failure to disclose the policy is material to the settlement agreement is not the dispositive issue regarding Policy 799. The dispositive issue on Policy 799 is the improper change of beneficiary while the § 40-4-121(3), MCA, dissolution restraining order was in place. The point is not whether disclosure of the policy would have affected the parties’ negotiations in the MSA; rather, the point is that had Roy not changed the beneficiary in violation of the restraining order, the status quo on the policy would have allowed the benefit to be passed to the existing beneficiary, Pamela, or — by operation of law — into Roy’s estate under the same analysis as we have made in Policy 936. ¶37 When Roy purchased these policies, and any time thereafter until he filed the dissolution, he was free to designate the beneficiary as he chose. When Roy filed the dissolution and the statutorily-mandated restraining order applied, Roy was no longer free to make those changes without the consent of the court and Pamela. Under § 40-4-12 l(3)(b), MCA, Roy was prohibited from changing his life insurance beneficiary during the marriage dissolution proceedings. When we made similar findings in Briese, we invalidated Briese’s change of designation from his wife to his children, even though it did not affect the value or how the benefits were distributed, because § 40-4-121(3)(b), MCA, “does not include any exceptions for changes to beneficiaries from spouse to protected child or vice versa .’’Briese, ¶ 31. The statute operates the same in this case and there are clearly no exceptions in the statute allowing for a change of beneficiary from wife to sister or vice versa, or otherwise. ¶38 In Briese, we determined that the courts possess “equitable power to order a return to the status quo when a party violating a temporary restraining order has died.” Briese, ¶ 41. There is no dispute that Roy’s changes of beneficiary were made while the statutorily-mandated restraining order was in place. Because Roy made improper changes to Policy 936 and Policy 799, those changes, in violation of the statute, are invalid and must be set aside. We conclude, as we did in Briese, that the District Court improperly interpreted the law regarding Roy’s improper change of beneficiary. The statute supports a conclusion that transfers of property in violation of an injunction, like that in Briese and in this case, are invalid and should be set aside. Death of the restraining order violator does not prevent this Court from exercising that power. Accordingly, we conclude that Roy’s improper changes to his beneficiary designations must be set aside and the designations returned to the status quo, as they were prior to the dissolution, in order to promote both the fairness and equity the statute is intended to provide and the agreements that Roy made to support his children. Unjust Enrichment and Constructive Trust ¶39 Returning the parties to the status quo in this case would require return of the life insurance proceeds to the estate, a task that is complicated because the funds have been dispersed and invested in real property. Because Valerie received the proceeds under the express terms of the policies, the question arises whether she was unjustly enriched. If so, fashioning a remedy or return to the status quo by setting the judgment aside requires further action by the District Court. ¶40 Pamela brings her claim in this case, on behalf of RBV, under the theory of an alleged constructive trust. She argues that Valerie was unjustly enriched when she received the benefit of Roy’s insurance policies, a result of the improper beneficiary changes. Pamela argues that the District Court erred in this case and abused its discretion when it determined that the restraining order violation had no actual effect on the beneficiary change and that the equities were not in favor of a constructive trust for RBV. Pamela argues that Roy’s June 25, 2010 violation of the restraining order cannot be affirmed and excused by the District Court. ¶41 Valerie argues that the elements of unjust enrichment were not met and a constructive trust is improper in this case. Valerie contends that the violation of the restraining order is not relevant because after the dissolution, Roy could have changed the beneficiary to any person of his choice. Valerie also argues that the written agreements in the underlying divorce action, and life insurance contracts, control all of the issues in this case and that therefore, there is no equitable remedy because the issues are settled by contracts, where equity cannot apply. ¶42 In its Order, the District Court analyzed the three elements of unjust enrichment and sought to balance the equities. The District Court correctly concluded that the first two elements of unjust enrichment are met according to the facts of the case. First, a benefit was conferred on Valerie by her brother Roy when she received the life insurance proceeds as a result of the improper designation. Second, the facts demonstrate that Valerie, as the conferee, appreciated and possessed knowledge of the conferred benefit as she acknowledged receipt of both policies, and she acknowledged she used the money from her brother to set up a trust, TVG trust, to hold the funds and invest in real estate, specifically, the house where she resides. The central dispute in this case surrounds the third element, where the district court was required to weigh the facts and evidence to determine whether the retention of the benefit Valerie incurred created an inequitable and unjust result. ¶43 In addressing this third element, the District Court weighed three separate arguments, and concluded: 1) Equity does not require voiding the beneficiary changes made by Roy in violation of the restraining order; 2) Roy’s failure to execute a will and properly execute his part of the MSA does not support a finding that Valerie was unjustly enriched; and 3) the “October Agreement” between Pamela and Saraya had no bearing on Valerie’s receipt of the insurance proceeds and does not bind Valerie to an unjust enrichment finding nor a constructive trust. After weighing the equities of these issues, the District Court refused to impose a constructive trust on the insurance proceeds. ¶44 This Court previously considered the law of unjust enrichment in the context of a constructive trust in N. Cheyenne Tribe v. Roman Catholic Church, 2013 MT 24, 368 Mont. 330, 296 P.3d 450. There, we concluded a constructive trust, “serves as a possible remedy to rectify the unjust enrichment of a party.” N. Cheyenne Tribe, ¶ 39. ¶45 A constructive trust serves as a proper remedy to unjust enrichment. “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.” Section 72-38-123, MCA; (see also N. Cheyenne Tribe, ¶ 30, (citing In re Estate of McDermott, 2002 MT 164, ¶ 25, 310 Mont. 435, 51 P.3d 486)) {see generally 1 Dan B. Dobbs, Dobbs Law of Remedies: Damages-Equity-Restitution § 4.3(1), 587, § 4.3(2) (Pract. Treatise Series, 2d ed., West 1993)) [hereinafter Law of Remedies]. This Court has broad discretion afforded by the principles of equity to impose a constructive trust despite lack of any wrongdoing by the person holding the property. N. Cheyenne Tribe, ¶ 29, (citing McDermott, ¶¶ 25-26). The Court may simply declare a constructive trust to exist, “[n]othing else is required.” N. Cheyenne Tribe, ¶ 32 (citing Eckart v. Hubbard, 184 Mont. 320, 325, 602 P.2d 988, 991 (1979)). A claim for unjust enrichment, in the context of a constructive trust, requires proof of three elements: (1) a benefit conferred upon a defendant by another; (2) an appreciation or knowledge of the benefit by the defendant; and (3) the acceptance or retention of the benefit by the defendant under such circumstances that would make it inequitable for the defendant to retain the benefit without payment of its value. N. Cheyenne Tribe, ¶ 39. Unjust Enrichment ¶46 Here, Roy’s actions set in motion the series of events changing the status quo in regard to his life insurance and the ultimate receipt of the benefit by his sister Valerie. Because this benefit went to Valerie, we apply the unjust enrichment factors to determine whether she was unjustly enriched. It is clear from the facts of the case that the first two elements of the test have been met: 1) a benefit has clearly been conferred upon Valerie through Roy’s improper insurance beneficiary change; and 2) Valerie has knowledge of the benefit, acknowledging receipt of the funds and investing them in a home and real property. ¶47 The third element of unjust enrichment and the circumstances created by Roy’s actions during and after the dissolution proceeding require further analysis. Thus, we consider whether Valerie’s acceptance and retention of the benefit from Roy, under these circumstances, makes it inequitable for Valerie to retain the benefit without payment of its value. The “circumstances” in this case are a result of Roy’s improper change of the beneficiary while the statutorily-mandated restraining order was in place. The final result of the circumstances is that Roy’s estate is unable to pay claims to his children or provide for their future as was intended and promised under the MSA and the parenting agreement providing for Saraya. If Roy had not made this improper change, the circumstances would be much different. Pamela would have been removed as the beneficiary upon the dissolution of their marriage, and the life insurance proceeds, under § 72-2-814, MCA, would have diverted into the estate upon Roy’s death, where it would have been distributed to Roy’s children under the intestacy statutes. ¶48 While we did not consider unjust enrichment in the Briese case, we did conclude that the remedy for the improper beneficiary designation was to set aside the change. Infiriese, even when the effect of changing the benefit did not alter the final beneficiary upon whom the benefit was bestowed, we set the change aside because violation of the statute invalidated Briese’s change. Here, similarly, the violation requires the Court to set aside the improper change and restore the status quo. Because the improper change must be set aside, we view the subsequent circumstances created by the change — Valerie’s receipt of the insurance proceeds — to be similarly improper because the benefits went to Valerie as a result of Roy’s mistakes. Accordingly, we conclude that the third element of unjust enrichment has been met because Valerie is holding the life insurance proceeds, which she received as a result of Roy’s improper change, “under such circumstances that in equity and good conscience [s]he ought not to retain it.” N. Cheyenne Tribe, ¶ 33. Constructive Trust ¶49 Because we conclude that Pamela, on REV’S behalf, has established a claim showing that Valerie was unjustly enriched, we now consider the ramifications of the imposition of a constructive trust as a remedy for the unjust enrichment. “A party’s proof of unjust enrichment entitles it to restitution from the.other party — regardless of any wrongdoing on the part of the unjustly enriched party.” N. Cheyenne Tribe, ¶ 37 (citing Lawrence v. Clepper, 263 Mont. 45, 53, 865 P.2d 1150, 1156 (1993)). As we stated in N. Cheyenne Tribe, “[ujnjust enrichment serves as a unifying principle for a wide variety of equitable claims and... a court may order restitution to vindicate these types of equitable claims.” N. Cheyenne Tribe, ¶ 38, (citing Dobbs, Law of Remedies § 4.1(3), 564). The Court measures restitution for unjust enrichment “by the defendant’s gain.”N. Cheyenne Tribe, ¶ 38, (citing Dobbs, Law of Remedies § 4.1(1), 555). In the context of a constructive trust the plaintiff does not need to show deprivation of something to recover, “it is sufficient that the defendant gained something that it should not be allowed to retain.” N. Cheyenne Tribe, ¶ 38 (citing McDermott, ¶¶ 25-26). ¶50 “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.” N. Cheyenne Tribe, ¶ 30 (citing McDermott, ¶ 25 (quoting § 72-33-219, MCA)). In this instance, the elements of unjust enrichment have been met and we conclude that Valerie has been unjustly enriched. In turn, in order to work an equitable result, we find that though Valerie has done nothing wrong, she is holding title to property and subject to an equitable duty to convey it, or a portion thereof, to another on the ground that she would be unjustly enriched if she were permitted to retain it. N. Cheyenne Tribe, ¶ 30. Accordingly, we determine that imposing a constructive trust on the proceeds of Roy’s two life insurance policies, Policy 799 and Policy 936, in favor of RBV is the proper remedy in this case. ¶51 As we noted, a significant issue emerges from this determination because Valerie has accepted the life insurance proceeds and spent or invested them on real property. This is not a case where the asset or money is being held in trust while a determination is made. We recently reviewed a similar circumstance in LeMond v. Yellowstone Dev., LLC, 2014 MT 181A, 375 Mont. 402, 336 P.3d 345, a case in which we imposed a constructive trust in LeMond’s favor because he lost title to lands promised to him in business dealings with Yellowstone Development. ¶52 In LeMond, LeMond entered an agreement to trade his work promoting sales for Yellowstone Development for a particular land parcel owned by Yellowstone Development. Prior to completing the agreement, Yellowstone Development traded the promised parcel to a third party and it was unavailable to LeMond when he completed his part of the contract. LeMond asked for the traded parcels to replace the conveyed parcels as part of a constructive trust, and the District Court agreed. We concluded that, because the traded parcels had more acreage and likely a higher value, the District Court had to determine the extent of the remedy. LeMond was granted a constructive trust under an implied contract legal theory, unlike the unjust enrichment theory in this case. Nonetheless, the resulting constructive trusts are similar because LeMond, like RBV, did not have direct access to the property subject to the constructive trust; in other words, the property was not set aside awaiting the Court’s determination. In LeMond, we remanded to the District Court for a determination of value regarding other lands owned by Yellowstone Development to replace the lost parcels. There, as here, the District Court needed to determine the proper amount of the constructive trust to make a determination “if, in equity and conscience, it belongs to [the plaintiff].” LeMond, ¶ 51 (citation omitted). We explained that the “equity of the transaction must shape the measure of relief.” LeMond, ¶ 52 (citation omitted). ¶53 A court sitting in equity is empowered to determine all questions involved in the case, and to fashion an equitable result that will accomplish complete justice. Blaine Bank of Montana v. Haugen, 260 Mont. 29, 35, 858 P.2d 14, 18 (1993); Kauffman-Harmon v. Kauffman, 2001 MT 238, ¶ 11, 307 Mont. 45, 36 P.3d 408. As in LeMond, the measure of relief must be shaped by the circumstances of the affected parties and the equity of the transaction. We conclude it is necessary to remand this matter to the District Court so that, acting in equity, it may fashion a result that will accomplish justice in light of the present circumstances of all affected parties. Among other matters, because we are directing that Roy’s changes of beneficiary designations be set aside and the designations returned to the previous status quo, the court must take account of any claim that may be asserted by Volk Sand & Gravel as co-beneficiary under Policy 936. The court may in addition consider any other factors it deems pertinent to its obligation to work an equitable result, and will be free to direct the nature and course of further proceedings on remand. Saraya Roberson and the “October Agreement” ¶54 Because we have determined that a constructive trust must be imposed on Roy’s insurance proceeds we conclude that we do not need to reach the arguments made on cross-appeal by Saraya Roberson. Pamela agreed on RBV’s behalf in her Amended Complaint of June 11, 2013, to pay Saraya’s creditor’s claim against Roy’s estate if a constructive trust was created in favor of RBV. Thus, we determine that this issue is moot as it is properly resolved under the parties’ agreement. CONCLUSION ¶55 We conclude that Valerie Goeser has been unjustly enriched because she has received a benefit that rightfully belongs to another. We make this determination in equity and conclude that Roy Volk’s errors in changing the beneficiary of his life insurance under the statutorily-mandated restraining order invalidates his designations on Policy 799 and Policy 936. We hold that a constructive trust was created on RBV’s behalf as a result of these errors, and that Valerie Goeser must return the insurance proceeds or that portion of the proceeds by which she “would be unjustly enriched if [she] were permitted to retain [them].” Section 72-38-123, MCA. ¶56 Reversed and remanded for further proceedings consistent with this Opinion. CHIEF JUSTICE McGRATH, JUSTICES COTTER and BAKER concur.
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JUSTICE McKINNON delivered the Opinion of the Court. ¶1 Charles Fockaert appeals pro se from an order issued by the Second Judicial District Court, Silver Bow County, granting default judgment in favor of Gail Stafford and awarding her prejudgment interest. We affirm. ¶2 We address the following issues on appeal: 1. Whether the District Court abused its discretion by entering a default judgment in favor of Stafford as a sanction for Fockaert’s failure to comply with the court’s order requiring mediation. 2. Whether the District Court erred in awarding prejudgment interest. FACTUAL AND PROCEDURAL BACKGROUND ¶3 Stafford initiated this action against Fockaert on September 12, 2012, alleging that Fockaert defrauded her out of $100,000. Stafford and Fockaert both agree that Stafford transferred $100,000 to Fockaert with the Korea Exchange Bank in July 2010, and that in August 2010 Fockaert refused to return the money after Stafford requested that he do so. ¶4 Stafford’s complaint further sets forth the following facts. On July 4, 2010, Fockaert sent an email to Stafford detailing the various ways he could invest Stafford’s money, including primarily investing her funds in a gold account. Fockaert stated that he would provide Stafford with the necessary information to access her account and detail her investments. On July 19, 2010, Stafford completed a foreign wire transfer in the amount of $100,000 to Fockaert’s bank account with the Korea Exchange Bank, and Fockaert received notification from the Bank that the $100,000 had been transferred. In August 2010, Fockaert visited Stafford in Montana and failed to provide any account information or documentation to Stafford regarding her investment. While Fockaert was in Montana in August 2010 Stafford requested Fockaert return the full $100,000. Despite continued assurances from Fockaert that he would return her money, Fockaert has failed to return any of Stafford’s $100,000. ¶5 On September 12,2012, Stafford filed a complaint alleging claims of unjust enrichment, constructive trust, and fraud. After Stafford filed a motion for judgment on the pleadings, Fockaert moved to amend his answer. The District Court denied Fockaert’s motion and granted Stafford’s motion for judgment on the pleadings. Fockaert appealed the District Court’s decision to this Court. We reversed the District Court and permitted Fockaert to amend his pleadings. See Stafford v. Fockaert, 2014 MT 51N, 374 Mont. 542. ¶6 After remand, Fockaert filed an amended answer on August 11, 2014, and the District Court entered a scheduling order setting trial for April 6, 2015. The District Court’s order required that the parties participate in a mandatory settlement conference at least 45 days prior to trial. ¶7 On February 7, 2015, Stafford sent an email to Fockaert explaining that the District Court imposed mandatory mediation in its scheduling order and suggesting that the parties engage in the mediation with non-profit mediators in Missoula. Two days later, Fockaert responded, stating he would not comply with the court’s order requiring mediation. Fockaert stated that “once Stafford deposed me, all possible negotiation options were off the table.” ¶8 On February 23, 2015, Stafford filed a motion for sanctions, requesting the court enter a default judgment against Fockaert as a sanction for violating the District Court’s scheduling order requiring mediation. The District Court conducted a hearing on Stafford’s motion on February 26,2015. The court explained to Fockaert that it expressly required mediation in its scheduling order, and that he must attend mediation or risk a default judgment. The court explained: Mediation is required. It’s not discretionary. Mediation must occur. All parties with settlement authority — with the ultimate settlement authority, which in this case it would be the parties themselves, are required to attend in person and participate in the mediation. I’ve required this mandatory mediation consistently in my 15 years on the bench. ... I have not ever granted a waiver of the mediation. I will not do so today, and I expect parties to go to the mediation and participate in good faith, meaning that they — that they go to the mediation with the idea to see if the matter can be resolved. And so the Court’s not going to change that position. At the close of the hearing, Fockaert indicated that he understood the court’s order, and Stafford withdrew her motion for sanctions. Stafford requested that she retain the right to refile the motion, however, if Fockaert continued to interfere with the court ordered mediation process. The court granted her request. ¶9 On March 11, 2015, the District Court issued a written order, reiterating that “mediation is mandatory and both parties must participate prior to the final pretrial conference,” and that Stafford withdrew her motion on the condition that should Fockaert refuse to participate in mediation Stafford would resubmit her motion. ¶10 The next day, Stafford emailed Fockaert and asked when Fockaert would be willing to conduct the mediation conference. Initially, Fockaert deflected Stafford’s request for mediation by referencing his previous response to Stafford’s motion for default judgment wherein Fockaert contended that he did not need to mediate. This caused Stafford to inquire whether Fockaert was again refusing to mediate. Fockaert then replied that he would indeed mediate and requested that Stafford “propose possible dates for my consideration.” On March 30, 2015, Stafford emailed Fockaert explaining that she had confirmed mediation for April 8, 2015, in Missoula. Fockaert responded that he had “prior engagements for April 8.” Over the next couple days, Stafford attempted to schedule a mediation date with Fockaert without success. Fockaert repeatedly refused to suggest a date he could attend and remarked to Stafford that he could not “afford to lose any more income on a frivolous case because you don’t know how to coordinate a meeting.” Finally, Stafford emailed Fockaert stating: “Since you have failed to suggest any alternatives there’s little I can do. If you care to suggest some alternatives, I’ll check with my calendar and the mediator.” Fockaert then emailed Stafford suggesting April 6, 2015. Stafford agreed and confirmed the mediation date with the non-profit Community Dispute Resolution Center in Missoula. On April 3, 2015, Stafford forwarded an email confirmation to Fockaert from the Community Dispute Resolution Center confirming the mediation date with the mediators for April 6, 2015. ¶11 On the morning of April 6, 2015, Stephan Edwards of the Community Dispute Resolution Center emailed Stafford informing her that he spoke with Fockaert over the weekend and Fockaert indicated he would not be attending the mediation and that the mediation was therefore cancelled. Edwards also explained that Fockaert had asked him to forward a letter to Stafford. The letter stated: “There'are no issues to mediate. I’m fully prepared and looking forward to the trial.” By the time Stafford received Edwards’ email informing her of the cancellation, she had driven to Missoula from Butte to participate in the mediation. Edwards subsequently submitted a sworn affidavit stating Fockaert had emailed him over the weekend and stated multiple times that he would not participate in meditation. ¶12 On April 7, 2015, Edwards emailed Stafford notifying her that Fockaert had, in fact, showed up at the mediation center on April 6. Edwards explained: “Fockaert showed up in Missoula yesterday morning for the mediation, though he did not intend to actually negotiate. He simply wanted to fulfill the letter of the Court order.” Edwards further notified Stafford that Fockaert gave him another copy of the earlier letter stating: “There are no issues to mediate. I’m fully prepared and looking forward to the trial.” ¶13 On April 9, 2015, Stafford renewed her motion for sanctions, requesting that the court enter a default judgment against Fockaert as a sanction for violating the District Court’s scheduling order requiring mediation. After a hearing on Stafford’s motion, the District Court granted default judgment in favor Stafford. The District Court awarded Stafford prejudgment interest on the judgment from July 19, 2010, the date Stafford transferred the funds to Fockaert. ¶14 Fockaert appeals. STANDARD OF REVIEW ¶15 We review a district court’s decision to impose sanctions for failure to comply with M. R. Civ. P. 16(f) for an abuse of discretion. Watson v. West, 2009 MT 342, ¶ 17, 353 Mont. 120, 218 P.3d 1227. We also review the severity of the sanction imposed for an abuse of discretion. Watson, ¶ 17. ¶16 “The decision to grant or deny prejudgment interest is reviewed to determine whether the district court correctly interpreted the law.” Tidyman’s Mgmt. Servs. v. Davis, 2014 MT 205, ¶ 13, 376 Mont. 80, 330 P.3d 1139. DISCUSSION ¶17 1. Whether the District Court abused its discretion by entering a default judgment in favor of Stafford as a sanction for Fockaert’s failure to comply with the court’s order requiring mediation. ¶18 M. R. Civ. P. 16(f) permits a court to impose any just sanctions, including those authorized by M. R. Civ. P. 37, on a party who fails to appear at a court ordered pretrial conference or who does not participate in good faith in the conference. M. R. Civ. P. 37 further expressly provides a court with the authority to “render[] a default judgment against the disobedient party.” ¶19 In reviewing a district court’s decision regarding the imposition of sanctions, we engage in a two-step inquiry: (1) “whether there was an actual failure to comply with the judicial process,” and (2) “whether the severity of the sanction was appropriate.” Xin Xu v. McLaughlin Research Inst. for Biomedical Sci., Inc., 2005 MT 209, ¶ 21, 328 Mont. 232, 119 P.3d 100. We generally defer to the district court on both questions because the court is in the best position to determine whether the party in question has, in fact, ignored the court’s order, and the extent to which the disobedient party disregarded his opponent’s rights. Richardson v. State, 2006 MT 43, ¶ 21, 331 Mont. 231, 130 P.3d 634. ¶20 Here, Fockaert focuses on the initial inquiry: whether he actually failed to comply with the judicial process. Rather than taking issue with the severity of the sanction imposed, Fockaert argues only that the District Court lacked authority to impose the sanction in the first instance. He contends that he complied with the court’s order by arriving on time for the mediation in Missoula and that he did nothing to violate the court’s order. By way of explanation, Fockaert offers that Edwards simply misunderstood his comments and that he always intended to participate in the mediation. ¶21 We are unpersuaded by Fockaert’s argument and defer to the judgment of the District Court. The District Court was in the best position to assess the merits of Fockaert’s explanation for the cancellation and to determine whether Fockaert complied in good faith with court’s Order requiring that the parties mediate. Before sanctioning Fockaert, the court conducted a lengthy hearing in which both parties submitted evidence. Fockaert testified and the court listened to Fockaert’s explanation for the cancellation. Fockaert conceded that he told Edwards that he did not need to mediate and that he would not “negotiate” with Stafford, but that he nonetheless always intended to “mediate” and Edwards misunderstood his comments. The court also reviewed several exhibits submitted by Stafford. Those exhibits included: (1) the email communications between the parties in which Fockaert repeatedly refused to suggest a date for mediation, rejected a date proposed by Stafford, and blamed Stafford for the failure to coordinate the meeting; (2) Edwards’ sworn affidavit stating that Fockaert emailed him over the weekend and stated “multiple times that he would not mediate”; and (3) the letter Fockaert gave to Edwards to forward to Stafford on the day the mediation was to occur in which Fockaert wrote, “There are no issues to mediate. I’m fully prepared and looking forward to the trial.” After reviewing the evidence presented to the District Court, we conclude that sufficient evidence existed for the court to find that Fockaert failed to participate in good faith in the court ordered mediation. The District Court did not abuse its discretion by imposing default judgment pursuant to M. R. Civ. P. 16(f) for Fockaert’s failure to comply with the court’s order. ¶22 2. Whether the District Court erred in awarding prejudgment interest. ¶23 The parties dispute whether Stafford is entitled to prejudgment interest, and if so, when such interest accrues. As an initial matter, both parties base their arguments on § 27-1-211, MCA, entitled “Right to interest,” and not on § 27-1-210, MCA, entitled “Interest on torts.” We have not previously discussed, at any length, the interplay between the two prejudgment interest statutes and decline to do so today. We merely highlight that there are these two separate prejudgment interest statutes and leave it to future parties to brief the relationship between the statutes as well as the applicability of § 27-1-210, MCA. ¶24 Section 27-1-211, MCA, provides: Each person who is entitled to recover damages certain or capable of being made certain by calculation and the right to recover that is vested in the person upon a particular day is entitled also to recover interest on the damages from that day except during the time that the debtor is prevented by law or by the act of the creditor from paying the debt. We have explained that the statute has three requirements: “(1) an underlying monetary obligation, (2) an amount of recovery that is certain or capable of being made certain by calculation, and (3) a right to recover that vests on a particular day.” Amour v. Collection Prof'ls, Inc., 2015 MT 150, ¶ 24, 379 Mont. 344, 350 P.3d 71. If these elements are met an award of interest is not discretionary; instead, a trial court is required to award prejudgment interest. New Hope Lutheran Ministry v. Faith Lutheran Church of Great Falls, Inc., 2014 MT 69, ¶ 70, 374 Mont. 229, 328 P.3d 586. Section 27-1-211, MCA, requires a court to award an injured party prejudgment interest “from the particular day that the right to a sum certain in damages vests.” Dew v. Dower, 258 Mont. 114, 126, 852 P.2d 549, 556 (1993). ¶25 Fockaert contends that Stafford’s damages were uncertain until the court entered default judgment and thus prejudgment interest is inappropriate. Relying on our decision in Montana Petroleum Tank Release Compensation Board v. Crumleys, Inc., 2008 MT 2, 341 Mont. 33, 174 P.3d 948, he reasons that because he disputed Stafford’s claim of fraud the damages were incapable of being made certain until after the court entered default judgment and conclusively determined liability. ¶26 We disagree. A dispute over the defendant’s liability giving rise to the damages does not suffice to make damages uncertain. Swank Enters. v. All Purpose Servs., Ltd., 2007 MT 57, ¶ 40, 336 Mont. 197, 154 P.3d 52. “The fact that a claim is disputed does not make it uncertain and therefore incapable of supporting an award of prejudgment interest.” Kraft v. High Country Motors, Inc., 2012 MT 83, ¶ 69, 364 Mont. 465, 276 P.3d 908. Rather, the statute “merely requires that the damages be certain, or capable of ascertainment by calculation.” James Talcott Constr., Inc. v. P&D Land Enters., 2006 MT 188, ¶ 41, 333 Mont. 107, 141 P.3d 1200. ¶27 Here, Stafford’s damages were readily ascertainable. There was no factual dispute regarding whether Fockaert obtained $100,000 from Stafford and then deposited those funds in his account with the Korea Exchange Bank. That Fockaert disputed Stafford’s claim of fraud does not render Stafford’s damages uncertain. The statutory requirement that the amount of Stafford’s damages be certain, or capable of ascertainment by calculation, is satisfied. ¶28 Our decision in Montana Petroleum is not inconsistent with this conclusion. Contrary to Fockaert’s understanding, Montana Petroleum does not stand for the proposition that so long as ultimate liability is contested prejudgment interest is inappropriate. Rather, we merely explained in Montana Petroleum that in cases involving breach of contract, this Court has consistently refused to award prejudgment interest where “ ‘the amount of damages due upon breach was not clearly ascertainable until determined by the trial court.’ ” Montana Petroleum, ¶ 100 (quoting Northern Montana Hosp. v. Knight, 248 Mont. 310, 321, 811 P.2d 1276, 1282 (1991)). Unlike in Montana Petroleum, however, the damages in this case were clearly ascertainable prior to the court’s entry of liability. While Fockaert contested Stafford’s allegations of fraud, Fockaert agreed he received $100,000 from Stafford. Thus, though Fockaert contested the claim, he did not contest the damages arising from the claim. ¶29 We next turn to whether Stafford’s right to recover the $100,000 vested on a particular day, and if so, the particular day on which that occurred. Our analysis here is guided by the court’s issuance of default judgment in favor of Stafford on her claim of actual fraud. We have explained the effect of a default judgment is that “the facts alleged by the plaintiff in the complaint are deemed admitted.” Lane v. Farmers Union Ins., 1999 MT 252, ¶ 25, 296 Mont. 267, 989 P.2d 309 (citing 10 Moore’s Federal Practice § 55.12(1) (3d ed. 1999)) (ellipsis omitted). In her complaint, Stafford alleged that Fockaert committed actual fraud. “The elements of actual fraud ‘hinge on the knowledge and intent of the defendant.’ ” McCulley v. U.S. Bank, 2015 MT 100, ¶ 34, 378 Mont. 462, 347 P.3d 247 (quoting Durbin v. Ross, 276 Mont. 463, 470, 916 P.2d 758, 762 (1996)). Consequently, Stafford alleged in her complaint that Fockaert knew he would not invest Stafford’s funds and intended to deceive Stafford prior to the transfer of the funds. Stafford further alleged that the elements of fraud were met on July 19, 2010, when Fockaert received the $100,000 from Stafford and thereby caused her injury. ¶30 Accepting Stafford’s allegations as true, the underlying monetary obligation due to Stafford was sum certain, in the amount of $100,000, on July 19, 2010, and Stafford had a right to recover that sum certain on that particular day. The elements of fraud were satisfied as soon as Stafford was injured by her reliance on Fockaert’s misrepresentation, which occurred when Stafford transferred $100,000 into Fockaert’s account on July 19, 2010. Since that date, Stafford has had a right to recover, and Fockaert has been obligated to return, the fraudulently obtained funds. ¶31 Furthermore, accruing the interest from July 19,2010, is fully consistent with the purpose of prejudgment interest. Prejudgment interest is “simply an ingredient of full compensation that corrects judgments for the time value of money.’’ Donell v. Kowell, 533 F.3d 762, 772 (9th Cir. 2008). It reflects the victim’s loss due to her inability to use the money for a productive purpose and serves to compensate the injured party for the loss of use of her money “from the time the claim accrues until judgment is entered, thereby achieving full compensation for the injury th[e] damages are intended to redress.” West Virginia v. United States, 479 U.S. 305, 310 n.2, 107 S. Ct. 702, 706 (1987). Stafford has shown that her cause of action accrued on July 19, 2010, and she has been denied the use of her money for a productive purpose from that time. Using any other date for accrual would run counter to the purpose of prejudgment interest and would not fully compensate Stafford for her loss. Therefore, we conclude that Stafford is entitled to prejudgment interest beginning on July 19, 2010, which is the particular day that her right to a sum certain in damages vested. ¶32 Affirmed. JUSTICES WHEAT, COTTER, BAKER and RICE concur.
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 The underlying case is the third lawsuit arising from a project to develop condominiums at Lakeside Village on Hauser Lake in Lewis and Clark County (the condos). The project’s developer, Cherrad, LLC (Cherrad), its lender, Mountain West Bank (the Bank), and the estate of its general contractor, Craig Rumanian (the Estate), were all parties to the second lawsuit. In this third suit, the Estate brought eight claims against the Bank that the Bank argued were barred by the compulsory counterclaim rule or the doctrine of claim preclusion. The District Court found that the Estate’s claims were barred, and granted summary judgment to the Bank on all claims. The Estate appeals the District Court’s order granting summary judgment to the Bank. The Estate also appeals the District Court’s denial of the Estate’s motion for relief from judgment, the District Court’s order changing venue, and the District Court’s taking of judicial notice of the record in previous actions. We affirm. ISSUES ¶2 We address the following issues on appeal: 1. Did the District Court err in granting Mountain West Bank’s motion to change venue? 2. Did the District Court err in granting summary judgment in favor of Mountain West Bank on all claims? 3. Did the District Court abuse its discretion by taking judicial notice of the record in previous actions ? 4. Did the District Court abuse its discretion by denying the Estate’s motion under Montana Rule of Civil Procedure 60(b)(6) to vacate the order of summary judgment ? FACTUAL AND PROCEDURAL BACKGROUND ¶3 This is the third of three lawsuits stemming from the development of condominiums at Lakeside Village on Hauser Lake in Lewis and Clark County. Conrad and Cheryl Hale owned several limited liability companies, including Cherrad, that were involved in developing the condos. CK Design and Construction was the sole proprietorship of Craig Kinnaman (Kinnaman), who was the general contractor on the project. Craig Kinnaman committed suicide in 2007, and his wife, Nancy Kinnaman, is the personal representative of his estate. Mountain West Bank loaned money to the Hales and their LLCs for the development of the condos and other unrelated ventures in Lakeside Village, including a bar and restaurant. Cherrad agreed to pay the Bank the first $200,000 of proceeds from the sale of each condo unit. The Hales, through Cherrad, then formed an agreement with Kinnaman whereby Kinnaman would fund the construction of the condos in exchange for $350,000 from the proceeds of the sale of each condo. Kinnaman agreed to subordinate his interest in the condos to the Bank’s interest. The parties entered into several other contracts between and among themselves regarding the development, construction, and financing of the condo units. ¶4 The unravelling of the Lakeside Village project in 2007 spawned three lawsuits. The first lawsuit (the Interpleader Action) resulted in a final judgment in district court that was not appealed. We resolved the second lawsuit (the Foreclosure Action) in 2013. See Mt. West Bank, N.A. v. Cherrad, LLC, 2013 MT 99, 369 Mont. 492, 301 P.3d 796. We set forth most of the background facts relevant to this third lawsuit in that opinion, Cherrad, ¶¶ 5-15, and we will not repeat them here. We recount only the facts essential to this appeal. ¶5 On March 28,2012, the Estate filed this action in Gallatin County and asserted eight claims against the Bank: (1) breach of covenant of good faith and fair dealing, (2) tortious interference with contract, (3) fraudulent inducement, (4) constructive fraud, (5) actual fraud, (6) deceit, (7) breach of contract, and (8) unjust enrichment. The thrust of the Estate’s claims was that the Bank misrepresented to Craig KInnaman how the proceeds from the infrastructure loans to Cherrad would be used, that it fraudulently induced Kinnaman into subordinating his interest in the condo units to the Bank’s interest, and that it unjustly enriched itself on profits from the sale of several condo units. The contracts on which the Estate bases its claims against the Bank in this case are the same contracts that were at issue in the Foreclosure Action. ¶6 The Bank moved for summary judgment on all the Estate’s claims on the grounds that the claims were barred by the compulsory counterclaim rule or the doctrine of claim preclusion. The Bank asserted that all the facts upon which the Estate relies in the present action were in existence during the pendency of the Foreclosure Action, and that the Estate should have litigated any claims it had against the Bank during the Foreclosure Action. The District Court agreed with the Bank and granted summary judgment on all claims. The Estate, appeals both the District Court’s order granting summary judgment and the District Court’s denial of the Estate’s motion for relief from judgment. The Estate also appeals the order changing venue from Gallatin County to Lewis and Clark County, and the District Court’s taking judicial notice in this action of the records from the previous actions. We affirm the District Court. STANDARD OF REVIEW ¶7 A district court’s ruling on a motion for change of venue to a proper county is a question of law that we review for correctness. Lockhead v. Weinstein, 2001 MT 132, ¶ 5, 305 Mont. 438, 28 P.3d 1081 (citing Sprinkle v. Burton, 280 Mont. 358, 361, 935 P.2d 1094, 1096 (1996)). ¶8 We review a district court’s entry of summary judgment de novo. McClue v. Safeco Ins. Co., 2015 MT 222, ¶ 8, 380 Mont. 204, 354 P.3d 604 (citing Albert v. City of Billings, 2012 MT 159, ¶ 15, 365 Mont. 454, 282 P.3d 704). “Summary judgment is appropriate when the moving party demonstrates both the absence of any genuine issues of material fact and entitlement to judgment as a matter of law.” Albert, ¶ 15. “A material fact is a fact that involves the elements of the cause of action or defenses at issue to an extent that necessitates resolution of the issue by a trier of fact.” Williams v. Plum Creek Timber Co., 2011 MT 271, ¶ 14, 362 Mont. 368, 264 P.3d 1090 (internal quotation marks omitted) (citing Arnold v. Yellowstone Mountain Club, LLC, 2004 MT 284, ¶ 15, 323 Mont. 295, 100 P.3d 137). ¶9 Evidentiary rulings by a district court, including a decision to take judicial notice of facts or law, are reviewed for abuse of discretion. In re Marriage of Carter-Scanlon, 2014 MT 97, ¶ 15, 374 Mont. 434, 322 P.3d 1033; In re Marriage of Steab, 2013 MT 124, ¶ 11, 370 Mont. 125, 300 P.3d 1168. We also review for abuse of discretion a district court’s ruling on a motion for relief from judgment brought under Rule 60(b)(6) of the Montana Rules of Civil Procedure. Hall v. Heckerman, 2000 MT 300, ¶ 12, 302 Mont. 345, 15 P.3d 869 (citing In re Marriage of Laskey, 252 Mont. 369, 371, 829 P.2d 935, 937 (1992)). DISCUSSION ¶10 1. Did the District Court err in granting Mountain West Bank’s motion to change venue? ¶11 The Estate filed this lawsuit on March 28, 2012, in Gallatin County. On May 31, 2012, the Bank filed a motion for change of venue pursuant to § 25-2-201(1), MCA, and requested that the District Court transfer the matter to Lewis and Clark County. Following full briefing, the District Court granted the Bank’s motion to change venue on July 10, 2012, and transferred the matter to Lewis and Clark County. The Estate did not appeal that order. ¶12 On May 14, 2015, the Estate appealed the District Court’s order granting summary judgment to the Bank, and the District Court’s order denying the Estate’s motion under Montana Rule of Civil Procedure 60(b)(6) for an order vacating summary judgment. In its appellate brief, the Estate argued, inter alia, that the Eighteenth Judicial District Court, Gallatin County erred in granting the Bank’s motion for change of venue to the First Judicial District Court, Lewis and Clark County, because venue in the present action is proper in Gallatin County, where the Estate’s probate was filed. The Bank responded that “[i]t is unclear how venue of the probate proceeding could inform the venue analysis here,” and that the District Court did not err in transferring this matter to Lewis and Clark County. We conclude the Bank’s argument is correct. ¶13 Section 25-2-201, MCA, provides, “[t]he court or judge must, on motion, change the place of trial in the following cases: (1) when the county designated in the complaint is not the proper county.” The Bank made such a motion, and the District Court was required to change the venue from Gallatin County if Gallatin County was not the proper place of trial. “[T]he proper place of trial for all civil actions is the county in which the defendants or any of them reside at the commencement of the action.” Section 25-2-118(1), MCA. This is the “principal rule” of venue. Tit. 25, ch. 2, Mont. Code AnnAnnotations, Official Comments at 128 (2012). The Bank is the only defendant in this action, and it is undisputed that the Bank is authorized to do business in Montana and that its principal place of business in Montana is Lewis and Clark County. Additionally, “[t]he proper place of trial for actions upon contracts is either: (a) the county in which the defendants, or any of them, reside at the commencement of the action; or (b) the county in which the contract was to be performed.” Section 25-2-121(1), MCA. The contracts at issue in this case were all to be performed in Lewis and Clark County, making Lewis and Clark County the proper venue for trial of the Estate’s contract claims. Even if venue may have been proper in Gallatin County on one of the Estate’s non-contract claims, the Bank would still be entitled to a change of venue to Lewis and Clark County. Section 25-2-116, MCA (“In an action involving two or more claims for which this part designates more than one as a proper place of trial, a party entitled to a change of place of trial on any claim is entitled to a change of place of trial on the entire action.”). Thus, Lewis and Clark County is the proper venue for this action, and the District Court did not err in granting the Bank’s motion to change venue from Gallatin County. ¶14 2. Did the District Court err in granting summary judgment in favor of Mountain West Bank on all claims? ¶15 The Estate raised eight claims against the Bank in its complaint in the present action. The Bank moved for summary judgment on various grounds and argued, inter alia, that it was entitled to judgment as a matter of law because the Estate’s claims were barred as having been compulsory counterclaims in the Foreclosure Action or were barred by the doctrine of claim preclusion. The District Court granted the Bank’s motion for summary judgment on the grounds that most of the Estate’s claims were barred as having been compulsory counterclaims in the Foreclosure Action, and the remaining claims having to do with the sale of condo units 3, 5, and 6 were barred by the doctrine of claim preclusion. We conclude that the District Court did not err in entering summary judgment in favor of the Bank, but we reach this conclusion based solely on the application of the doctrine of claim preclusion. As we have said before, “[w]e will affirm a district court decision if the right result was reached, though for the wrong reason, and we do so here.” Hinebauch v. McRae, 2011 MT 270, ¶ 25, 362 Mont. 358, 264 P.3d 1098 (citing Wells Fargo Bank v. Talmage, 2007 MT 45, ¶ 23, 336 Mont. 125, 152 P.3d 1275). ¶16 In Touris v. Flathead County, 2011 MT 165, 361 Mont. 172, 258 P.3d 1, we set forth the policy behind and the elements of claim preclusion: The doctrine of res judicata, or claim preclusion, bars re-litigation of a claim that a party has already had the opportunity to litigate. Baltrusch v. Baltrusch, 2006 MT 51, ¶ 15, 331 Mont. 281, 130 P.3d 1267. Central to res judicata is the concept of finality; litigation must, at some point, come to an end. State v. Southwick, 2007 MT 257, ¶ 15, 339 Mont. 281, 169 P.3d 698; Orlando v. Prewett, 236 Mont. 478, 481, 771 P.2d 111, 113 (1989). In addition, res judicata promotes judicial efficiency, deterring plaintiffs from splitting a single cause of action into more than one lawsuit. Baltrusch, ¶ 15. Touris, ¶ 12. A matter is barred by the doctrine of claim preclusion if four elements are met: “(1) [t]he parties or their privies are the same; (2) [t]he subject matter of the present and past actions is the same; (3) [t]he issues are the same and relate to the same subject matter; and (4) [t]he capacities of the parties are the same to the subject matter and issues between them.” Touris, ¶ 13 (citing Wiser v. Mont. Bd. of Dentistry, 2011 MT 56, ¶ 9, 360 Mont. 1, 251 P.3d 675). However, res judicata only applies if a final judgment on the merits was entered in the earlier action. Touris, ¶ 13 (citing Baltrusch, ¶ 15; Wiser, ¶ 9). ¶17 In this case, the first, second, and fourth elements are clearly satisfied. Both parties to the present action were parties to the Foreclosure Action. See Cherrad, ¶¶ 5-15. The subject matter of the present and past actions, the developing, building, and financing of Lakeside Village, is the same. See Cherrad, ¶¶ 5-24. And the capacities of the parties are the same to the subject matter and issues between them. See Cherrad, ¶¶ 5-24. The only elements conceivably in dispute, then, are whether the issues in the two actions are the same, and whether the Foreclosure Action was a final judgment on the merits of all claims in dispute in the present action. ¶18 In analyzing the third element of claim preclusion, whether the ' issues in the two actions are the same, we have in the past looked to the Restatement (Second) of Judgments: “[w]hen a valid and final judgment rendered in an action extinguishes the plaintiffs claim [...], the claim extinguished includes all rights of the plaintiff to remedies against the defendant with respect to all or any part of the transaction, or series of connected transactions, out of which the action arose.” Brilz v. Metro. Gen. Ins. Co., 2012 MT 184, ¶ 23, 366 Mont. 78, 285 P.3d 494 (quoting Restatement (Second) of Judgments § 24). We went on to say that [t]he concept of “transaction” here “connotes a natural grouping or common nucleus of operative facts.” Restatement (Second) of Judgments § 24 cmt. b. Thus, where one act causes a number of harms to, or invades a number of different interests of, the same person, there is still only one transaction. Restatement (Second) of Judgments § 24 cmt. c. The rationale and premise underlying this approach is that modern procedural systems afford parties ample means for fully developing the entire transaction in one action — e.g., by permitting the presentation of all material relevant to the transaction without artificial confinement to any single substantive theory or kind of relief and without regard to historical forms of action or distinctions between law and equity; by allowing allegations to be made in general form and reading them indulgently; by allowing allegations to be mutually inconsistent subject to the pleader’s duty to be truthful; by permitting considerable freedom of amendment and tolerating changes of direction in the course of litigation; and by enabling parties to resort to compulsory processes besides private investigations to ascertain the facts surrounding the transaction. Restatement (Second) of Judgments § 24 cmt. a. “The law of res judicata now reflects the expectation that parties who are given the capacity to present their ‘entire controversies’ shall in fact do soRestatement (Second) of Judgments § 24 cmt. a. Brilz, ¶ 24. ¶19 The Estate had an opportunity in the Foreclosure Action to present the “entire controversy,” and it should have done so. In the Foreclosure Action, the Bank sought to foreclose on the loans it had made to Cherrad, and alleged that it was adversely affected by the $3.3 million construction lien the Estate had filed against the property that secured the loans the Bank was seeking to foreclose. Cherrad, ¶ 16. The Bank also requested a declaration that its secured interests in the property were superior to the Estate’s construction lien. Cherrad, ¶ 16. The Estate filed an answer, a counterclaim against the Bank for lien superiority, and a crossclaim against Cherrad for breach of contract and unjust enrichment, claiming Cherrad wrongfully diverted funds from the proceeds of the sale of one of the condo units. Cherrad, ¶ 17. The District Court granted summary judgment against the Estate in favor of the Bank and Cherrad, and declared the Estate’s construction lien invalid. Cherrad, ¶ 18. However, the District Court also ordered Cherrad to compensate the Estate for work Kinnaman had performed on the condos. Cherrad, ¶ 22. The District Court awarded the Estate $76,278 of the $3.3 million the Estate claimed it was owed. Cherrad, ¶ 22. We affirmed the District Court. Cherrad, ¶ 42. ¶20 Now in the present action, the Estate is suing the Bank over the same contracts that were the subject of the Estate’s counterclaim for lien superiority and its crossclaim for breach of contract in the Foreclosure Action, and is seeking to recover, this time from the Bank, the same $3.3 million that it claimed was its due in the Foreclosure Action. The present action clearly arose from the same “series of connected transactions” that gave rise to the Foreclosure Action. Brilz, ¶ 23 (quoting Restatement (Second) of Judgments § 24). Thus, the issues in the two actions are the same, and the third element of claim preclusion is satisfied. ¶21 The final question in applying the doctrine of claim preclusion here is whether the Foreclosure Action was a final judgment on the merits of all claims in dispute in the present action. As we have said before, [t]his includes claims that were or could have been litigated in the first action. Wiser v. Mont. Bd. of Dentistry, 2011 MT 56, ¶ 17, 360 Mont. 1, 251 P.3d 675; Somont Oil Co. v. A & G Drilling, Inc., 2008 MT 447, ¶ 11, 348 Mont. 12, 199 P.3d 241. Hence, as a result of the doctrine’s application, a party may be precluded from litigating a matter that has never been litigated and that may involve valid rights to relief. The rationale here is to force parties to raise such matters in their first suit in the interest of judicial economy and avoiding the expense and vexation of multiple lawsuits. Brilz, ¶ 21 (emphasis in original). ¶22 The facts that form the basis of the Estate’s complaint in the present action — e.g., the negotiations about and substance of the contracts among the various parties, the procedures followed in the sale of the condo units and distribution of the resulting proceeds, the amounts of money each party spent or was owed during the development, financing, construction, and sale of the condo units — were all in existence at the time of the Foreclosure Action. Although the Estate chose in the Foreclosure Action to proceed against Cherrad and not the Bank, the Bank was a party to that action, and the Estate’s current claims against the Bank could have been litigated in the Foreclosure Action. Because a final judgment on the merits was entered in the Foreclosure Action, the Estate is now barred from reopening issues that were or should have been determined in the prior suit. Baltrusch, ¶ 15. ¶23 Since all four elements of claim preclusion are present and a final judgment on the merits was entered in the Foreclosure Action, the Estate’s claims in this action are barred by the doctrine of claim preclusion. The District Court did not err in granting summary judgment to the Bank on all claims. ¶24 3. Did the District Court abuse its discretion by taking judicial notice of the record in previous actions ? ¶25 In its order granting the Bank’s motion for summary judgment, the District Court took judicial notice of our opinion in the Foreclosure Action and the District Court records of the Interpleader Action and the Foreclosure Action. The Estate argues on appeal that the District Court improperly used Rule 202 of the Montana Rules of Evidence to adopt facts from the record of the Foreclosure Action. The Bank responds that the District Court did not adopt facts from a previous record, but simply took judicial notice of the existence of those facts, and that taking judicial notice of the record in the present action or in previous actions is not an abuse of the District Court’s discretion under Rule 202. ¶26 The Montana Rules of Evidence allow a District Court to take judicial notice of facts, M. R. Evid. 201, or judicial notice of law, M. R. Evid. 202. Under Rule 202, the District Court may take judicial notice of the “[rjecords of any court of this state.” M. R. Evid. 202(b)(6). We have held that this rule “includes prior proceedings in other cases, Farmers Plaint Aid v. Fedder, 2000 MT 87, ¶¶ 26-27, 299 Mont. 206, 999 P.2d 315, and prior proceedings in the same case, State v. Loh, 275 Mont. 460, 477-78, 914 P.2d 592, 603 (1996).” State v. Homer, 2014 MT 57, ¶ 8, 374 Mont. 157, 321 P.3d 77. In this case, the District Court noted in its order granting the Bank’s motion for summary judgment that the “factual and procedural backgrounds are based on the record in this case, as well as court records the Court is entitled to take judicial notice of under Rule 202.” The District Court then listed the opinions and records of which it was taking judicial notice, including our opinion in the Foreclosure Action, and the District Court records of the Interpleader Action and the Foreclosure Action. Rule 202 allows a District Court to take judicial notice of the prior proceedings in this case and in other cases, and the District Court did not abuse its discretion in so doing. ¶27 Further, in order to properly consider the Bank’s argument that the Estate’s claims were barred by the compulsory counterclaim rule or by claim preclusion, the District Court would have needed to review the record in the Foreclosure Action to determine if the issues presented in that action were the same as the issues presented in this action, and to determine if the facts alleged in the Estate’s complaint in this action were in existence during the pendency of the previous action. The District Court did just that: reviewed the discovery produced in the Foreclosure Action and determined that the facts central to the Estate’s present claims were in existence during the Foreclosure Action. The District Court did not take improper judicial notice of facts under Rule 201, but rather properly exercised its discretion under Rule 202 to take judicial notice of the record in previous actions. ¶28 4. Did the District Court abuse its discretion by denying the Estate’s motion under Montana Rule of Civil Procedure 60(b)(6) to vacate the order of summary judgment? ¶29 After the District Court granted the Bank’s motion for summary judgment, the Estate filed a motion for relief from judgment under Rule 60(b)(6) of the Montana Rules of Civil Procedure. The Estate argued that it was entitled to relief from judgment because the District Court took improper judicial notice of facts from previous actions in order to determine that no genuine dispute of material fact remained in this action. The merits of the Estate’s judicial notice arguments are addressed above. ¶30 Under Rule 60, a party may seek relief from a final judgment or order for one of the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party; (4) the judgment is void; (5) the judgment has been satisfied, released, or discharged; it is based on .an earlier judgment that has been reversed or vacated; or applying it prospectively is no longer equitable; or (6) any other reason that justifies relief. M. R. Civ. P. 60(b). The Estate sought relief from judgment under subsection (6), the “catch-all” provision. We have held that “[a] movant cannot prevail under Rule 60(b)(6) unless [she] meet[s] the higher burden of proving extraordinary circumstances while showing that [she was] blameless and acted within a reasonable amount of time.” Wittich Law Firm, P.C. v. O’Connell, 2013 MT 122, ¶ 19, 370 Mont. 103, 304 P.3d 375 (citing Bahm v. Southworth, 2000 MT 244, ¶ 14, 301 Mont. 434, 10 P.3d 99). Moreover, “[i]t is not the intent of Rule 60(b)(6) to be a substitute for appeal.” Lussy v. Dye, 215 Mont. 91, 93, 695 P.2d 465, 466 (1985). A motion under Rule 60(b)(6) “must be something more than a request for rehearing or a request that the District Court change its mind. It must be shown that something prevented a full presentation of the cause or an accurate determination on the merits and that for reasons of fairness and equity redress is justified.” Lussy, 215 Mont. at 93, 695 P.2d at 466. ¶31 The Estate’s motion in this case was essentially a request that the District Court change its mind. The District Court noted in its order denying the Estate’s Rule 60(b)(6) motion that “[m]ere allegations do not constitute an ‘extraordinary circumstance’ when the moving party had an opportunity to argue, and did argue, before the District Court.” The fact that the Estate was unsuccessful in its arguments before the District Court is not an extraordinary circumstance warranting relief under Rule 60(b)(6). The District Court did not abuse its discretion in denying the Estate’s motion for relief from judgment. CONCLUSION ¶32 For the foregoing reasons, we affirm the District Court’s April 22, 2014 Order granting the Bank’s motion for summary judgment, and the District Court’s April 16, 2015 Order denying the Estate’s motion for relief from judgment. CHIEF JUSTICE McGRATH, JUSTICES BAKER, SHEA and McKINNON concur. In its briefs, the Estate maintains that its complaint was filed as a counterclaim against the Bank in a probate matter in Gallatin County involving the Craig Kinnaman estate. In fact, the Estate’s complaint was filed as a separate civil action and there was never a consolidation of the civil complaint with the probate action.
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JUSTICE McKINNON delivered the Opinion of the Court. ¶1 The Montana Environmental Information Center (MEIC) appeals from an order issued by the Fifth Judicial District Court, Jefferson County, granting summary judgment in favor of the Montana Department of Environmental Quality (DEQ) and Golden Sunlight Mines, Inc (GSM). We affirm. ¶2 In April 2014, MEIC filed suit in the Fifth Judicial District Court, challenging the DEQ’s decision to approve the expansion of GSM’s gold mine to include a smaller nearby pit. MEIC contended that the reclamation plan the DEQ chose to reclaim the nearby pit violated Article IX, Section 2 of the Montana Constitution and the Montana Metal Mine Reclamation Act (MMRA), § 82-4-301, MCA, et seq. MEIC argued that Article IX, Section 2 of the Montana Constitution and the MMRA require land disturbed by the taking of natural resources to be “fully reclaimed” to its previous condition, and that the reclamation plan the DEQ chose to reclaim the pit failed to do so. MEIC maintained that the DEQ must adopt a reclamation plan that requires GSM to completely backfill the pit after closure in order to comply with the Montana Constitution and the MMRA. MEIC also contended that the DEQ’s decision to select the particular reclamation plan was arbitrary and capricious because the criteria set forth in the MMRA were not satisfied. ¶3 In response, the Appellees asserted that MEIC should be collaterally estopped from relitigating whether the Montana Constitution and the MMRA require lands disturbed by a mining operation to be fully reclaimed. Appellees argued that, in connection with a reclamation plan for a different pit at GSM’s mine, this precise question had already been litigated, with MEIC receiving an adverse ruling from the District Court. Alternatively, the Appellees argued that neither the Montana Constitution nor the MMRA require full reclamation of disturbed lands. The Appellees also maintained that the DEQ’s decision regarding its choice of reclamation plans was supported by substantial evidence under the criteria set forth in the MMRA. ¶4 The District Court agreed with the Appellees, concluding that MEIC’s constitutional and statutory arguments were collaterally estopped and the DEQ’s decision was supported by the evidence under the MMRA criteria. We áffirm the District Court’s decision regarding collateral estoppel and thus do not address the merits of whether Article IX, Section 2 of the Montana Constitution and the MMRA require land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. We also affirm the District Court’s holding that the criteria under the MMRA were satisfied. ¶5 We address the following issues on appeal: 1. Whether MEIC is precluded from relitigating the issue of whether Article IX, Section 2 of the Montana Constitution requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. 2. Whether MEIC is precluded from relitigating the issue of whether the Montana Metal Mine Reclamation Act requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. 3. Whether the DEQ made a reasoned decision in selecting the Agency-Modified Alternative under the criteria set forth in the Montana Metal Mine Reclamation Act. FACTUAL AND PROCEDURAL BACKGROUND ¶6 Golden Sunlight Mines operates an open pit gold mine on the southern edge of the Bull Mountains near Whitehall, Montana. In September 2012, GSM submitted an application to the DEQ to amend the operating permit for its mine, proposing to expand its mining operation to develop a smaller nearby pit that the parties refer to as the North Area Pit. The North Area Pit is estimated to cover approximately 49.4 acres. The expansion would allow GSM to mine an additional 4.2 million tons of gold ore and extend GSM’s current mining operation by about two years. GSM proposed mining the North Area Pit through the use of conventional open pit mining methods which would be consistent with its current mining operation. In order to obtain the gold ore beneath the North Area Pit, GSM proposed excavating below the natural water table and installing external dewatering wells adjacent to the North Area Pit to lower the water table beneath the pit and allow for the mineral extraction. ¶7 As part of the proposed expansion, GSM submitted a reclamation plan for the North Area Pit to the DEQ. In 2013, the DEQ issued a draft Environmental Impact Statement (EIS) which discussed the impacts of four alternative reclamation plans for the North Area Pit: (1) the No Action Alternative; (2) the GSM Proposed Reclamation Alternative; (3) the Agency-Modified Alternative; and (4) the North Area Pit Backfill Alternative. The No Action Alternative reflects the current mining operation conducted under GSM’s existing permit with no management plan for an additional disturbance at the North Area Pit. Under the GSM Proposed Reclamation Alternative, the approximately 52.6 million tons of non-ore waste rock that will be generated from the North Area Pit will be primarily placed in an expansion area on the east side of the mine. The GSM Proposed Reclamation Alternative requires GSM to continue to operate its external dewatering wells after closure of the mine to prevent contamination of local groundwater. In addition, GSM must install an underground in-pit sump to protect against local groundwater contamination in the event that one of the external dewatering wells fails. The Agency-Modified Alternative is the same as the GSM Proposed Reclamation Alternative with the exception of various additional modifications developed by the DEQ to further mitigate environmental impacts associated with the mining. These modifications include: (1) the implementation of closure geodetic and ground-movement monitoring for the North Area Pit to ensure safe access and to keep reclamation systems working, and (2) the preparation of a detailed bat and raptor habitat plan for the North Area Pit to provide habitat and add utility to the North Area Pit highwall. Lastly, the fourth proposed reclamation plan identified as the North Area Pit Backfill Alternative requires GSM to use 9.2 million tons of waste rock from the mine to backfill the North Area Pit. Like the GSM Proposed Reclamation Alternative and the Agency-Modified Alternative, the Backfill Alternative requires GSM to continue to operate the external dewatering wells after closure. However, unlike the other alternatives, the Backfill Alternative does not allow for the installation of an in-pit sump to protect against contamination of local groundwater in the event of an external dewatering well failure. In the draft EIS, the DEQ extensively analyzed the advantages and disadvantages associated with these four alternatives and evaluated the alternatives in light of the criteria set forth in the MMRA. ¶8 Following a public hearing and comments, the DEQ issued a final EIS identifying the Agency-Modified Alternative as the preferred alternative. In rejecting the Backfill Alternative, the DEQ recognized several benefits associated with the Backfill Alternative, including better structural stability, increased wildlife habitat, and added aesthetic value. However, despite these advantages, the DEQ rejected the Backfill Alternative in lieu of the Agency-Modified Alternative, concluding that the Backfill Alternative failed to sufficiently mitigate the risk of groundwater contamination because it did not permit GSM to install an in-pit sump. The DEQ explained that local groundwater and surface water contamination could result if the natural water table rebounds and comes into contact with the acidic North Area Pit highwalls. The DEQ found that unlike the Agency-Modified Alternative in which the underground sump would prevent the water table from rebounding in the event of an external dewatering well failure, “[i]f the external dewatering wells were to fail under the North Area Pit Backfill Alternative, it is unlikely that replacement wells could be installed before impacted groundwater begins to discharge from the North Area Pit.” Thus, the DEQ explained that it chose the Agency-Modified Alternative rather than the Backfill Alternative because the Agency-Modified Alternative provided adequate assurance that pollution of the local aquifers and surface waters would not occur. The Backfill Alternative did not provide such assurances. ¶9 On January 9, 2014, the DEQ approved the expansion of GSM’s mine to include the proposed North Area Pit and issued a Record of Decision (ROD) outlining the reasons for its decision. On April 8,2014, MEIC filed its complaint, challenging the DEQ’s decision to approve the expansion of the existing mining operation to include the North Area Pit with the Agency-Modified Alternative as the chosen reclamation plan. MEIC contended that the DEQ’s decision to choose the Agency-Modified Alternative violated the Montana Constitution and the MMRA. MEIC argued that Article IX, Section 2 of the Montana Constitution requires that all land disturbed by a mining operation must be “fully reclaimed” to its previous condition, and that, because of this constitutional mandate, the MMRA must also require all lands to be fully reclaimed. MEIC further sought a legal declaration from the District Court that to the extent the MMRA could be interpreted to “allow less than full reclamation” the MMRA violated Article IX, Section 2 of the Montana Constitution. Finally, MEIC maintained that the DEQ’s decision to adopt the Agency-Modified Alternative was arbitrary and capricious because the alternative did not satisfy the criteria under the MMRA. ¶10 In response, the Appellants argued that MEIC should be collaterally estopped from contending that Article IX, Section 2 of the Montana Constitution and the MMRA require full reclamation of disturbed lands because that issue had been previously litigated in Montana Environmental Information Center v. Montana Department of Environmental Quality, 2011 Mont. Dist. LEXIS 99 (5th Jud. Dist. Ct. June 30, 2011) (hereinafter, MEIC I). In MEIC I, MEIC filed suit against the DEQ and GSM in the Fifth Judicial District Court, challenging the DEQ’s adoption of its reclamation plan regarding a large open pit mine also located at GSM’s mine near Whitehall. The parties refer to this open pit mine as the Mineral Hill Pit. As in the present case, MEIC claimed that the reclamation plan was unlawful under the Montana Constitution and the MMRA. Similarly, MEIC argued that Article IX, Section 2 of the Montana Constitution and the MMRA require all land disturbed by mining operations to be “fully reclaimed” to its previous condition. MEIC likewise sought a legal declaration that to the extent the MMRA “allows less than full reclamation” the statute was in violation of this constitutional provision. ¶11 The District Court disagreed with MEIC in MEIC I, holding that Article IX, Section 2 of the Montana Constitution does not require disturbed land to be returned to its previous condition. Instead, the District Court concluded that the constitutional standard by which legislative actions are measured under Article IX, Section 2 of the Montana Constitution is whether the Legislature has provided “reasonable” standards for the reclamation of disturbed lands. Citing the language of the Montana Constitution, the transcripts from the 1972 Constitutional Convention, and a lack of precedent from this Court indicating that reclamation is a fundamental right, the court explained that the constitutional provision “provide[s] a guide for the legislature” and that the “legislature is authorized to do that which is reasonable” under the provision. MEIC did not appeal the District Court’s decision in MEIC I. ¶12 In the present case, based on its conclusion in MEIC I, the District Court held that MEIC was estopped from relitigating the question of whether Article IX, Section 2 of the Montana Constitution and the MMRA require land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. The court explained that in MEIC I it “squarely rejected MEIC’s argument that ‘[Article IX, Section 2 of the Montana Constitution] requires restoration of the ground to its previous condition.’ ” The court further explained that in MEIC I it expressly “held that this provision provides a ‘guide for the legislature’ ” and “empowers the legislature to ‘do that which is reasonable.’ ” After determining that “[cjollateral estoppel precludes MEIC from arguing that the MMRA is unconstitutional to the extent that it did not require restoration of the ground to its previous condition,” the court concluded that the Agency-Modified Alternative satisfied the criteria under the MMRA. STANDARD OF REVIEW ¶13 We review a district court’s ruling on motions for summary judgment de novo. Gibbs v. Altenhofen, 2014 MT 200, ¶ 8, 376 Mont. 61, 330 P.3d 458. Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file,” together with any affidavits, demonstrate that no genuine issue exists as to any material fact and that the moving party is entitled to judgment as a matter of law. Dewey v. Stringer, 2014 MT 136, ¶ 6, 375 Mont. 176, 325 P.3d 1236. The availability of collateral estoppel and the preclusive effect of a prior judgment are also reviewed de novo. Brilz v. Metro. Gen. Ins. Co., 2012 MT 184, ¶ 13, 366 Mont. 78, 285 P.3d 494. ¶14 We review an agency’s decision not classified as a contested case under the Montana Administrative Procedure Act using the same standard as the district court. We determine whether the agency decision was “arbitrary, capricious, unlawful, or not supported by substantial evidence.” Clark Fork Coal. v. Mont. Dep’t of Envtl. Quality, 2008 MT 407, ¶ 21, 347 Mont. 197, 197 P.3d 482. In making this inquiry, “we consider whether the decision was ‘based on a consideration of the relevant factors and whether there has been a clear error of judgment.’ ” Clark Fork, ¶ 21 (quoting North Fork Pres. Ass’n v. Dep’t of State Lands, 238 Mont. 451, 465, 778 P.2d 862, 871 (1989)). Although our review of an agency decision is narrow, we will not “automatically defer to the agency ‘without carefully reviewing the record and satisfying [ourjselves that the agency has made a reasoned decision.’ ” Clark Fork, ¶ 21 (quoting Friends of the Wild Swan v. DNRC, 2000 MT 209, ¶ 28, 301 Mont. 1, 6 P.3d 972). DISCUSSION ¶15 1. Whether MEIC is precluded from relitigating the issue of whether Article IX, Section 2 of the Montana Constitution requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. ¶16 Issue preclusion (collateral estoppel) bars a party from relitigating an issue already decided in prior litigation. Baltrusch v. Baltrusch, 2006 MT 51, ¶ 15, 331 Mont. 281, 130 P.3d 1267. The doctrine ensures that “once a court decides an issue of fact or law necessary to its judgment, that decision precludes relitigation of the same issue in a different cause of action between the same parties.” Brilz, ¶ 18. Issue preclusion serves dual purposes. First, it protects the interests of litigants by “relieving] parties of the expense and vexation of multiple lawsuits.” Brilz, ¶ 18. Second, it promotes judicial economy by “prevent[ing] parties from incessantly waging piecemeal, collateral attacks against judgments.” Baltrusch, ¶ 15. In substantively considering whether the issues are the same in the former and present actions, we do not equate an issue with “elements of a cause of action.” Rather, “the bar that arises from collateral estoppel extends to all questions essential to the judgment and actively determined by a prior valid judgment.” McDaniel v. State, 2009 MT 159, ¶ 33, 350 Mont. 422, 208 P.3d 817. ¶17 We apply a four-element test to determine whether relitigation of an issue is barred: 1. Was the issue decided in the prior adjudication identical to the issue raised in the action in question? 2. Was there a final judgment on the merits in the prior adjudication? 3. Was the party against whom preclusion is now asserted a party or in privity with a party to the prior adjudication? 4. Was the party against whom preclusion is now asserted afforded a full and fair opportunity to litigate the issue which may be barred? Omimex Can., LTD. v. State, 2015 MT 102, ¶ 13, 378 Mont. 490, 346 P.3d 1125 (citing McDaniel, ¶ 28). The parties agree that the final three elements of the issue preclusion test are satisfied. Further, the parties do not dispute that in MEIC I MEIC directly presented the District Court with the question of whether Article IX, Section 2 of the Montana Constitution requires disturbed land to be restored to its previous condition, and that the court “squarely rejected” this argument. MEIC thus focuses on the first element — whether the issue is identical — and advances two arguments in support of its contention that the issue in MEIC I is not identical to the issue in the present action. First, MEIC argues that the legal issue here and the legal issue in MEIC I are different because the constitutional standard it advanced in MEIC I is not the standard it puts forth in the current litigation. Second, MEIC argues that factual differences in the two actions create different issues. We address MEIC’s arguments in turn. ¶18 MEIC begins by arguing that the District Court’s holding entirely “misses the point” with respect to its constitutional argument in this case, contending that, contrary to the District Court’s understanding, MEIC did not argue that Article IX, Section 2 of the Montana Constitution requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. Instead, MEIC maintains that its argument here and in the District Court below is that the Constitution requires the “DEQ to choose the most effective reclamation alternative” and the “Backfill Alternative most effectively reclaims the land disturbed by the North Area Pit.” ¶19 The Appellees respond that the legal issue here is the same as the legal issue in MEIC I and MEIC is attempting on appeal to reframe the same constitutional argument it made in MEIC I in order to avoid issue preclusion. The Appellees argue that the constitutional standard MEIC has offered “has been somewhat of a moving target during the course of the GSM litigation.” Appellees observe that in the District Court MEIC argued that the Constitution requires “full reclamation,” but on appeal MEIC argues that the Constitution requires the “most effective reclamation alternative.” The Appellees maintain the legal issue nevertheless remains the same: “whether the Constitution requires [full] restoration of land disturbed by natural resource extraction.” ¶20 We agree with the Appellees that MEIC raised the same legal issue in MEIC I that it raises in the present action. We have explained that a “litigant cannot avoid preclusion simply by reframing the same issues or raising novel contentions.” Baltrusch, ¶ 25. If this were the case, “a party could escape the preclusive effect of an adverse judgment” in every case by using different language to describe the same argument. B&B Hardware, Inc. v. Hargis Indus.,_U.S._, 135 S. Ct. 1293, 1308 (2015). While MEIC couches its argument on appeal in terms of the “most effective” reclamation alternative, MEIC stated in its complaint in the present action, as it did in MEIC I, that Article IX, Section 2 of the Montana Constitution requires “full reclamation.” Similarly, in both complaints, MEIC sought a legal declaration that to the extent the MMRA “allows less than full reclamation” the MMRA is unconstitutional. Further, MEIC argues on appeal that the DEQ cannot constitutionally choose a reclamation alternative that “reclaims less land” than another alternative. Although MEIC’s argument can certainly be stated in any number of different ways, the constitutional standard MEIC advocated for in MEIC I and the constitutional standard that it advocates for in the present litigation are indistinguishable. ¶21 Moreover, even if we were to accept MEIC’s assertion that it is offering a different constitutional standard than it offered in MEIC I, MEIC would still be precluded from advancing it because MEIC could have raised that different legal theory in the former litigation. We have explained that merely because a litigant advances a new contention in a second action, it does not necessarily follow that the new contention is exempt from preclusion. Haines Pipeline Constr. v. Mont. Power Co., 265 Mont. 282, 288-89, 876 P.2d 632, 636-37 (1994). “ Tf a new legal theory or factual assertion put forward in the second action is related to the subject-matter and relevant to the issues that were litigated and adjudicated previously, so that it could have been raised, the judgment is conclusive on it despite the fact that it was not in fact expressly pleaded or otherwise urged.’ ” McDaniel, ¶ 33 (quoting Haines, 265 Mont. at 288-89, 876 P.2d at 636-37) (emphasis in original). ¶22 In MEIC I, MEIC pressed the District Court to decide the constitutional standard under Article IX, Section 2 of the Montana Constitution. MEIC could have pleadedor otherwise urged the District Court to adopt whatever constitutional standard it believed to be appropriate. It elected to argue that the Constitution requires disturbed land to be restored to its previous condition. The District Court disagreed with MEIC, holding instead that the Constitution requires that the statutory scheme achieve “reasonable” reclamation. MEIC now attempts to challenge that determination in a separate action involving the same parties, contending that the “Constitution does not direct the legislature to enact ‘reasonable’ standards,” and that such an interpretation is “hollow” and a “dead letter.” MEIC had an opportunity to make this argument and challenge the District Court’s determination by appealing the court’s decision in MEIC I to this Court. For whatever reason, MEIC did not do so. Issue preclusion now prevents MEIC from raising the same issue with respect to the North Area Pit that it raised, and lost, with respect to the Mineral Hill Pit. In MEIC I, the District Court conclusively addressed the constitutional standard under Article IX, Section 2 of the Montana Constitution. ¶23 We next turn to MEIC’s argument that it can avoid issue preclusion because of the factual differences between the Mineral Hill Pit and the North Area Pit. MEIC asserts that the “two pits are materially different,” and that these factual differences have legal significance, thereby preventing the issues from being the same. We disagree. ¶24 Issue preclusion applies with equal force to both issues of law and issues of fact. In cases involving the same issues of law, issue preclusion is appropriate when the factual differences between the two actions “are of no legal significance whatever in resolving the issue presented in both cases.” United States v. Stauffer Chem. Co., 464 U.S. 165, 174, 104 S. Ct. 575, 579 (1984). Accord Pacific Power & Light Co. v. Mont. Dep’t of Revenue, 246 Mont. 398, 404, 804 P.2d 397, 401 (1991). The United States Supreme Court’s decision in Stauffer and this Court’s decision in Pacific Power provide clear illustrations of the category of cases, in which the present case falls, where the party opposing the preclusive effect of collateral estoppel sought to relitigate legal issues in which the different facts of the underlying litigation and the former litigation were not legally significant in determining the issue presented. ¶25 In Stauffer, the United States Supreme Court addressed whether the Environmental Protection Agency (EPA) could relitigate the issue of whether private contractors are “authorized representatives” as that term is used in the Clean Air Act. Stauffer, 464 U.S. at 166, 104 S. Ct. at 576. In previous litigation, Stauffer Chemical Co. v. EPA, 647 F.2d 1075 (10th Cir. 1981) (hereinafter, Stauffer I), private contractors from the EPA attempted to conduct an inspection of one of Stauffer’s phosphate plants in Wyoming, but Stauffer refused to allow them to enter the plant. In Stauffer I, Stauffer argued that he did not need to permit the contractors entry because private contractors are not “authorized representatives” under the Clean Air Act for purposes of conducting inspections. The district court agreed, and the Tenth Circuit Court of Appeals affirmed. In a subsequent action filed in the United States District Court for the Middle District of Tennessee, Stauffer Chemical Co., v. EPA , 511 F. Supp. 744 (M.D. Tenn. 1981) (hereinafter, Stauffer II), the EPA attempted to inspect one of Stauffer’s chemical plants in Tennessee using different private contractors than the ones used in Stauffer I. Stauffer again refused to allow entry to the private contractors and argued that the EPA should be estopped from relitigating the issue of whether private contractors are authorized representatives under the Clean Air Act based on the Tenth Circuit’s decision in Stauffer I. The Sixth Circuit agreed, holding that the EPA was collaterally estopped by Stauffer I from relitigating the same question against Stauffer. The United States Supreme Court upheld the Sixth Circuit’s decision, concluding that, while the two suits involved two completely different occurrences at different plants located in different States, the “authorized representative” issue was the same in Stauffer I and Stauffer II. Stauffer, 464 U.S. at 170, 104 S. Ct. at 578. The Court explained that “[a]ny factual differences between the two cases, such as the difference in the location of the plants and the difference in the private contracting firms involved, are of no legal significance whatever in resolving the issue presented in both cases.” Stauffer, 464 U.S. at 172, 104 S. Ct. at 579. Thus, the Court determined the EPA was collaterally estopped from relitigating whether private contractors are “authorized representatives” under the Clean Air Act, despite factual differences in the plants and the particular private contractors utilized for inspections. Stauffer, 464 U.S. at 174, 104 S. Ct. at 580. ¶26 Similarly in Pacific Power, this Court addressed whether public utility owners could relitigate the issue of whether beneficial use taxes on the utility owners were unconstitutional under the Commerce Clause. Pacific Power, 246 Mont. at 404, 804 P.2d at 401. In previous litigation, the Court had held that the beneficial use taxes were constitutional for the year 1984. However, the utility owners argued that issue preclusion did not bar their suit because the present action involved different tax years, namely 1985, 1986, and 1987. Pacific Power, 246 Mont. at 404, 804 P.2d at 401. This Court rejected the owners’ argument, concluding that the “fact that different tax years are being challenged makes no difference” in resolving the constitutional issue presented in both cases. Pacific Power, 246 Mont. at 404, 804 P.2d at 401. We explained: The constitutional challenges remain the same, and it is the substance of these challenges that have failed. The year in which they were brought has no bearing upon their lack of success. Allowing the [utility owners] to raise the same challenges to the same tax each subsequent tax year serves no purpose. Pacific Power, 246 Mont. at 404, 804 P.2d at 401 (emphasis in original). Thus, we precluded the utility owners from relitigating the legal issue. Pacific Power, 246 Mont. at 405, 804 P.2d at 401. ¶27 The present case fits comfortably into the framework provided by Stauffer and Pacific Power. Here, like the parties opposing issue preclusion in Stauffer and Pacific Power, MEIC seeks to relitigate a legal issue in which any factual differences between the former and the current action are of no legal significance whatsoever in resolving the legal issue presented in both cases. Just as the difference in the contracting firms and location of the plants in Stauffer and the difference in the year in which the constitutional challenge was brought in Pacific Power were irrelevant to the issues presented in those cases, the difference in the physical characteristics of the North Area Pit and the Mineral Hill Pit are wholly immaterial to the legal issue presented here. MEIC does not, nor could it, seriously contend that the constitutional issue — whether Article IX, Section 2 of the Montana Constitution requires land disturbed by the taking of natural resources to be restored to its previous condition — turns on geography, location, size, or any other physical characteristic of the two pits. Indeed, in making its constitutional argument, MEIC relies on the language of Article IX, Section 2 of the Montana Constitution, the jurisprudence of this Court, and the transcripts from the 1972 Constitutional Convention, not the physical characteristics of the two pits. Like the utility owners’ challenge in Pacific Power, MEIC’s constitutional argument remains the same, and any factual distinctions are without legal significance. The District Court has already “squarely rejected” MEIC’s argument that the Montana Constitution requires restoration of the ground to its previous condition. Allowing MEIC to relitigate the issue of full reclamation would frustrate the collateral estoppel doctrine and defeat its purpose of protecting litigants from burdensome relitigation and of promoting judicial economy. ¶28 In sum, MEIC pressed the District Court in MEIC I to decide the constitutional standard by which legislative actions are measured under Article IX, Section 2 of the Montana Constitution. The District Court did so. Because that issue was specifically raised, litigated, and decided by the District Court in the former litigation in MEIC I in which the DEQ and GSM were parties, MEIC is barred by the doctrine of issue preclusion from raising the issue again for consideration by the District Court. We hold that the District Court did not err by precluding MEIC from relitigating whether Article IX, Section 2 of the Montana Constitution requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. ¶29 2. Whether MEIC is precluded from relitigating the issue of whether the Montana Metal Mine Reclamation Act requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. ¶30 MEIC is similarly precluded from relitigating whether the MMRA requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. First, our rationale for precluding MEIC from raising its constitutional challenge applies with equal force to MEIC’s statutory argument. In MEIC I, the District Court considered and rejected the same legal argument that MEIC makes here — that the MMRA requires the DEQ to choose the most effective reclamation alternative because Article IX, Section 2 of Montana Constitution requires as much. Similarly, here, MEIC maintains that the factual differences between the Mineral Hill Pit and the North Area Pit create different issues. As explained above, any factual variations between the two pits are legally insignificant to resolving the issue presented in both cases — whether the MMRA requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. ¶31 Second, even if MEIC had not advanced its statutory argument in MEIC I, our conclusion with respect to Issue 1 precludes review of this issue as well. Issue preclusion operates to preclude a party from advancing an issue in a current action even though the party did not advance that issue in the former “when the issues are so intertwined that to decide the issue before it, the District Court would have to rehear the precise issue previously decided.” Baltrusch, ¶ 25 (quoting Martelli v. Anaconda-Deer Lodge County, 258 Mont. 166, 169, 852 P.2d 579, 581 (1993)) (ellipsis, internal quotation marks, and brackets omitted). Here, MEIC’s statutory argument is entirely premised on its constitutional argument and the two arguments are so intertwined that the District Court would have to revisit the constitutional issue to decide the statutory issue. Because we affirmed the District Court’s conclusion to preclude MEIC from relitigating the constitutional standard, MEIC’s statutory argument is necessarily precluded as well. We hold that the District Court did not err by precluding MEIC from relitigating whether the MMRA requires land disturbed by the taking of natural resources to be fully reclaimed to its previous condition. Our conclusion on this Issue, however, does not preclude MEIC from challenging the DEQ’s application of the MMRA’s statutory criteria to the facts of the North Area Pit. ¶32 3. Whether the DEQ made a reasoned decision in selecting the Agency-Modified Alternative under the criteria set forth in the Montana Metal Mine Reclamation Act. ¶33 MEIC argues that the DEQ’s decision to select the Agency-Modified Alternative is unsupported by the evidence under the criteria set forth in the MMRA. Pursuant to § 82-4-336(9)(b), MCA, of the MMRA “a reclamation plan must provide sufficient reclamation to a condition: (i) of stability structurally competent to withstand geologic and climatic conditions without significant failure that would be a threat to public safety and the environment; (ii) that affords some utility to humans or the environment; (iii) that mitigates postreclamation visual contrasts between reclamation lands and adjacent lands; and (iv) that mitigates or prevents undesirable offsite environmental impacts.” ¶34 In both the final EIS and the ROD, the DEQ extensively analyzed the Agency-Modified Alternative in light of the MMRA criteria set forth in § 82-4-336(9)(b), MCA. Beginning with the first condition, the DEQ concluded that “[wjhile the North Area Pit Backfill Alternative would provide better structural stability, no highwall failures would occur under any of the alternatives that would threaten public safety or the environment outside the pit.” To ensure public safety within the North Area Pit, the DEQ required that GSM install fencing and monitor ground-movement after closure of the mine under the Agency-Modified Alternative. The DEQ concluded that with these precautionary measures “[mjinor raveling and small wall failures could occur over time but would not present a risk to human health or the environment.” To better afford utility to the environment, the DEQ required GSM to place growth media on the pit benches to support establishment of vegetation and to plant tree seedlings on the berms and benches. The revegetated portions of the North Area Pit will total approximately 22 acres, which the DEQ concluded will provide wildlife habitat for a number of animal species, including the Black-tailed Prairie Dog, the Fringed Myotis, and the Hoary Bat. To mitigate postreclamation visual contrasts between reclaimed lands and adjacent lands, the DEQ required GSM to plant shrubs and trees on accessible benches in the highwalls that are visible from outside of the North Area Pit. The DEQ concluded that the “planting and seeding of benches will reduce the visual contrast between the highwall areas and adjacent undisturbed topography.” ¶35 Lastly, the DEQ addressed the potential for undesirable offsite impacts, specifically the potential impact associated with contaminated groundwater. The DEQ concluded that with the installation of an underground sump pump the Agency-Modified Alternative “provided adequate assurance that pollution of the Jefferson River alluvial aquifer and surface water in the Jefferson River Slough in violation of water quality laws would not occur.” The DEQ found that “if the external dewatering wells were to fail, they could be replaced before the water table rebounds and impacted water begins discharging from the North Area Pit.” The DEQ found that “[g]iven the capacity of the underground sump,” the flow of impacted groundwater “will not exceed the design capacity of the sump.” The DEQ explained that under the Agency-Modified Alternative even if the external dewatering wells were to fail “no impacts to groundwater or surface water outside the pit are anticipated because impacted groundwater would be captured by the underground sump and not flow from the pit.” Thus, the DEQ concluded that the Agency-Modified Alternative provided better assurances against ground water contamination than the Backfill Alternative. ¶36 The DEQ’s decision was based on consideration of the relevant factors set forth in § 82-4-336(9)(b), MCA, of the MMRA, and was not arbitrary, capricious, unlawful, or unsupported by substantial evidence. Therefore, we cannot conclude that the DEQ made a clear error of judgment, and we are satisfied that the DEQ made a reasoned decision in selecting the Agency-Modified Alternative. The District Court did not err by upholding the DEQ’s decision. ¶37 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES RICE, COTTER and BAKER concur. “Contested case” denotes a “proceeding before an agency in which a determination of legal rights, duties, or privileges of a party is required by law to be made after an opportunity for hearing.” Section 2-4-102(4), MCA. All parties to this action agree that this is not a contested case within the meaning of § 2-4-102(4), MCA. The parties use the term “restoration” to denote full reclamation. MEIC contends that under the general rule of issue preclusion the facts must be “virtually identical” in the two actions to preclude relitigation of an issue under Stauffer. MEIC misreads Stauffer. While the United States Supreme Court did make reference to “virtually identical” facts in Stauffer, it did so in the context of an exception to the general rule of issue preclusion known as the “unmixed question of law” exception. In Stauffer, the Supreme Court acknowledged that “the exception is generally recognized” but was “frank to admit uncertainty as to its application.” Stauffer, 464 U.S. at 171, 104 S. Ct. at 579. Similarly, other courts have recognized the “ ‘unmixed question of law’ exception is not easily summarized.” AMTRAK v. Pa. PUC, 288 F.3d 519, 530 (3d Cir. 2002). Here, however, unlike the EPA in Stauffer, MEIC has failed to develop an argument under the ill-defined exception. Thus, we decline to address whether the “unmixed question of law” exception is applicable in this instance.
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 Plaintiff David Hastie (Hastie) underwent foot surgery in October 2010. Defendant Dr. Mark Deibert (Deibert) of Alpine Orthopedics & Sports Medicine (Alpine) in Bozeman performed the surgery. Following the surgery, Dr. Deibert placed Hastie in an orthotic boot and asked him to return for post-operative care. After two post-operative appointments, Hastie did not return to Dr. Deibert’s office for a third appointment, but continued wearing the orthotic boot. Hastie wore the boot for almost three years, which resulted in foot, leg and back pain and difficulty walking. Hastie sued Dr. Deibert for medical malpractice and Consumer Protection Act violations, among other things. The case was tried to a jury in December 2014, and judgment was entered for Defendants. Hastie now appeals two of the District Court’s pre-trial orders, one excluding testimony from Hastie’s expert witness, and another granting Defendants’ motion for partial summary judgment. The Defendants raise two issues on cross-appeal to be addressed only in the event we reverse and remand for a new trial. We affirm. ISSUES ¶2 We restate the issues on appeal as follows: ¶3 Did the District Court abuse its discretion by excluding Hastie’s proposed expert witness, Dr. Hahn, on the grounds that Dr. Hahn is neither a medical doctor nor a doctor of osteopathy? ¶4 Did the District Court err in granting Dr. Deibert and Alpine summary judgment on Hastie’s Consumer Protection Act claims? FACTUAL AND PROCEDURAL BACKGROUND ¶5 David Hastie was injured in an all-terrain vehicle (ATV) accident on his girlfriend’s father’s property in late September or early October of 2010. He sustained fractures to the bones that make up the Lisfranc joint complex on his right foot. Hastie went to the Bozeman Deaconess Hospital for x-rays of his foot on October 4, 2010. After viewing the x-rays, Dr. Mary Drake of the Bozeman Deaconess Emergency Department referred Hastie to Alpine Orthopedics & Sports Medicine for evaluation and treatment of his foot. On October 4, 2010, Hastie saw Dr. Jeffrey Rasch of Alpine for an initial evaluation. Dr. Rasch suspected a Lisfranc injury and requested a CT scan of the area for further evaluation. Advanced Medical Imaging performed a CT scan of Hastie’s right foot the next day. The CT scan revealed several fractures consistent with a Lisfranc injury. Hastie then met with Dr. Mark Deibert, an orthopedic surgeon at Alpine, about possible treatment options. Hastie elected to proceed with a surgical operation called “open reduction internal fixation of Lisfranc fracture-dislocation,” which took place on October 7, 2010. Dr. Deibert placed screws in Hastie’s foot during the surgery and was satisfied that the operation was successful. ¶6 Hastie returned to Dr. Deibert’s office on October 18,2010, for his first post-operative appointment. Hastie’s sutures were removed and the incision appeared to be healing well. X-rays revealed the foot bones were properly aligned. Hastie was given a removable orthotic boot and instructions to maintain non-weightbearing but continue range of motion exercises and return for a follow-up appointment in six weeks. ¶7 Hastie returned for an appointment with Dr. Deibert on November 29, 2010. At that appointment, Dr. Deibert noted that Hastie’s incisions had healed well, that Hastie had been able to bear weight on his foot while in the orthotic boot, and that the screws in his foot remained properly aligned. In his notes about the visit, Dr. Deibert wrote, “I plan to have [Hastie] continue nonpainful weightbearing in the right lower extremity and follow up in six weeks for repeat evaluation.” ¶8 What occurred during the next eighteen months is disputed. Hastie had hoped to obtain insurance coverage for the surgery through his girlfriend’s father’s homeowner’s insurance policy, but was unsuccessful, leaving him solely responsible for the $9,001 bill. Hastie maintains that he made multiple attempts to schedule a third postoperative appointment with Dr. Deibert, but was not allowed an appointment until he paid the bill for his surgery. Dr. Deibert testified in his deposition that denying a patient post-operative care because of a billing issue would constitute sub-standard medical care, and that his office does not employ such practices. He testified at trial that he has never directed that a patient be turned away for failure to pay his bill. ¶9 Dr. Deibert’s office maintains records of all patient communications, and his office recorded two phone calls with Hastie in early 2011. According to the call logs, Hastie inquired about the bill for his surgery, but did not attempt to make an appointment after November 29, 2010. Hastie never returned to Dr. Deibert’s office for a third post-operative appointment. Dr. Deibert and another doctor testified at trial that physicians generally do not track patients down and insist on follow-up care; rather, it is the responsibility of the patient to schedule appointments. ¶10 Seventeen months after his last appointment with Dr. Deibert, Hastie went to see Dr. Jon Robinson of Bridger Orthopedic, complaining of pain in his right foot. Dr. Robinson examined Hastie on April 3, 2012, confirmed his medical history, and noted that the alignment of the foot was good and the hardware was still in place and intact. However, Dr. Robinson was concerned that Hastie was still wearing a boot and was still using narcotic pain medication 18 months post-surgery. Dr. Robinson discussed operative and non-operative treatment options with Hastie, and Hastie elected to have surgery to have the hardware removed from his foot. ¶11 Hastie did not contact Dr. Robinson’s office about scheduling the surgery until February 28,2013. The medical record generated on that day says, “[t]he patient had a previous lis franc injury. [H]e has been wearing a walking boot since last [AJpril. [T]he patient was scheduled for surgery but for financial reasons decided to hold off. He would like to have surgery soon and was wondering about coming out of the boot.” Under “Assessment/Plan,” Dr. Robinson wrote, “[t]he xray shows intact screws. The patient would like to have them removed and we will do that if he schedules. OK to come out of the boot. Risk of screw breakage was discussed.” ¶12 Another six months passed before Hastie went in for surgery with Dr. Robinson. Dr. Robinson removed the screws in Hastie’s foot on August 21, 2013, and performed follow-up care through October of 2013. On October 7, 2013, Dr. Robinson noted that Hastie is participating in rehabilitation and “making excellent progress,” is no longer taking pain medication, and is “full weight bearing.” ¶13 In the meantime, on October 9, 2012, Hastie filed suit against Dr. Deibert and Alpine for medical malpractice and Consumer Protection Act (CPA) violations. Hastie alleged that Dr. Deibert refused to remove the hardware in his foot or the boot until Hastie paid for his surgery, and that as a result of Dr. Deibert’s breach of the standard of care, Hastie was forced to wear a boot for the intervening years, which resulted in degenerative back pain and difficulty walking. Hastie also alleged that Dr. Deibert and Alpine engaged in unfair and deceptive practices, in violation of the CPA. Hastie now appeals two of the District Court’s pre-trial orders, one excluding his expert witness, and one granting summary judgment to the Defendants on the Consumer Protection Act claims. He does not otherwise appeal from the jury verdict. Additional facts will be discussed as necessary in the following analysis. STANDARD OF REVIEW ¶14 We review a district court’s rulings on the admissibility of expert testimony for abuse of discretion. McClue v. Safeco Ins. Co., 2015 MT 222, ¶¶ 8-14, 380 Mont. 204, 354 P.3d 604 (citing Beehler v. E. Radiological Assocs., P.C., 2012 MT 260, 367 Mont. 21, 289 P.3d 131; Harris v. Hanson, 2009 MT 13, ¶ 18, 349 Mont. 29, 201 P.3d 151). ¶15 We review a district court’s entry of summary judgment de novo. McClue, ¶ 8 (citing Albert v. City of Billings, 2012 MT 159, ¶ 15, 365 Mont. 454, 282 P.3d 704). “Summary judgment is appropriate when the moving party demonstrates both the absence of any genuine issues of material fact and entitlement to judgment as a matter of law.” Albert, ¶ 15. “A material fact is a fact that involves the elements of the cause of action or defenses at issue to an extent that necessitates resolution of the issue by a trier of fact.” Williams v. Plum Creek Timber Co., 2011 MT 271, ¶ 14, 362 Mont. 368, 264 P.3d 1090 (internal quotation marks omitted) (citing Arnold v. Yellowstone Mountain Club, LLC, 2004 MT 284, ¶ 15, 323 Mont. 295, 100 P.3d 137). DISCUSSION ¶16 Did the District Court abuse its discretion by excluding Hastie’s proposed witness, Dr. Hahn, on the grounds that Dr. Hahn is neither a medical doctor nor a doctor of osteopathy? ¶17 In support of his medical malpractice claim, Hastie sought standard of care testimony from Dr. John Hahn, a podiatrist formerly licensed in Oregon. Defendants filed a motion in limine to exclude testimony from Hastie’s proposed expert witness on the grounds that Montana law precludes a podiatrist from offering standard of care testimony in a medical malpractice case against an orthopedic surgeon. The District Court granted Defendants’ motion, and did not abuse its discretion in so doing. ¶18 The District Court relied on § 26-2-601(2), MCA, to exclude proposed testimony by Dr. Hahn. This statute, entitled “Medical malpractice expert witness qualifications,” provides: “If the malpractice claim involves treatment that is recommended or provided by a physician as defined in 37-3-102, a person may not testify as an expert witness with respect to issues of negligence or standards of care and practice concerning the treatment unless the person is also a physician.” Section 26-2-601(2), MCA. A physician is defined in § 37-3-102(11), MCA, as “a person who holds a degree as a doctor of medicine or doctor of osteopathy and who has a valid license to practice medicine or osteopathic medicine in this state.” Under the statutory definition, Dr. Deibert is a “physician” because he holds the degree of doctor of medicine. Dr. Hahn is not a “physician” because he is neither a doctor of medicine nor a doctor of osteopathy, but rather a doctor of podiatric medicine. Thus, Dr. Hahn is statutorily unqualified to offer negligence or standard of care testimony against Dr. Deibert in this medical malpractice case. The District Court did not abuse its discretion in excluding Dr. Hahn’s testimony against Dr. Deibert. ¶19 Did the District Court err in granting Dr. Deibert and Alpine summary judgment on Hastie’s Consumer Protection Act claims ? ¶20 Hastie alleged in his complaint that Defendants violated the CPA and “engaged in unfair or deceptive acts or practices in the conduct of [their] trade or commerce.” Defendants moved for summary judgment on the CPA claims on the grounds that Hastie’s allegations are directed at Dr. Deibert’s practice of medicine, and thus recovery is unavailable under the CPA. Hastie responded that his CPA claims are based upon Defendants’ “entrepreneurial dealings” with patients. He alleged that Dr. Deibert failed to provide him with the information necessary to make a decision regarding the “purchase” of the surgery and failed to properly instruct him in post-surgery treatment, and that Alpine engaged in billing practices that barred patients from the office due to an unpaid account. The District Court concluded that Hastie’s theories about how Dr. Deibert and Alpine violated the Consumer Protection Act are premised upon allegations of professional negligence and are consequently exempt from the CPA. The District Court granted Defendants’ motion for summary judgment on the CPA claims. We affirm. ¶21 Montana’s Consumer Protection Act prohibits “[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or/commerce.” Section 30-14-103, MCA. The CPA defines “trade” and “commerce” to mean “the advertising, offering for sale, sale, or distribution of any services, any property, tangible or intangible, real, personal, or mixed, or any other article, commodity, or thing of value, wherever located ....” Section 30-14-102(8), MCA. ¶22 Only once have we addressed the availability of CPA claims in a professional negligence case against a medical provider. In that case, we held that “only those acts or practices in the conduct of the entrepreneurial, commercial, or business aspects of running a [medical practice] are actionable under Montana’s CPA.” Brookins v. Mote, 2012 MT 283, ¶ 54, 367 Mont. 193, 292 P.3d 347. We “agree[d] with the near unanimous line of authority that has exempted from the CPA conduct by health-care providers in the ‘actual practice’ of the profession,” and we found that “failing to exempt professional negligence in the course of the ‘actual practice’ of medicine could render medical malpractice law ‘obsolete.’ ” Brookins, ¶ 54. In Brookins, we distinguished between a hospital’s credentialing of a doctor and a hospital’s billing or advertising practices, and found that the former was not entrepreneurial, commercial, or business-related, while the latter were. Brookins, ¶ 55. ¶23 In this case, Hastie’s theories about how Dr. Deibert’s and Alpine’s treatment of him constituted unfair and deceptive practices stem from alleged acts of professional negligence. Hastie claims that Dr. Deibert refused him post-operative care, ostensibly because Hastie had not yet paid his bill. But the alleged refusal of medical care, for whatever reason, falls squarely within the realm of professional negligence. In fact, Hastie’s attorney approached this claim as a professional negligence issue during Dr. Deibert’s deposition. Dr. Deibert was asked “[w]ould it be below the standards of care for a practitioner to refuse postsurgical followup to a patient because they have an outstanding bill?” and Dr. Deibert replied, “I believe it would be.” Hastie’s allegation that Dr. Deibert refused him follow-up medical care is not related to the entrepreneurial, commercial, or business aspects of running a medical practice, and it is thus exempt from the CPA. Brookins, ¶ 54. ¶24 As noted, Hastie supported his CPA claim with an allegation that Dr. Deibert failed to provide him with the information necessary to make an informed decision regarding the “purchase” of the surgery. But Hastie cannot transform a professional negligence claim into a Consumer Protection Act claim simply by using the word “purchase.” Any dispute Hastie has with Dr. Deibert about informed consent regarding the surgery would fall within the realm of professional negligence, not trade or commerce. See e.g. Zimmerman v. Robertson, 259 Mont. 105, 112, 854 P.2d 338, 342 (1993) (“We note only that the cases generally support the proposition that a medical malpractice claim premised on a theory of lack of informed consent is a separate cause of action rather than an ‘element’ in an otherwise specifically alleged claim of professional negligence.... [In previous cases, plaintiffs have] sought personal injury damages based, alternatively, on alleged surgical negligence, alleged negligence in post-operative care, and an alleged negligent failure by the doctor to disclose the risks inherent in the operation.”). Hastie’s allegation that Dr. Deibert did not adequately inform Hastie about the risks of and alternatives to surgery is likewise not related to the entrepreneurial, commercial, or business aspects of running a medical practice, and it is thus exempt from the CPA. Brookins, ¶ 54. ¶25 Though there was some dispute about what occurred after Hastie’s final appointment with Dr. Deibert, these disputed facts do not bear on our resolution of the CPA cause of action and therefore do not require resolution by the trier of fact. Williams, ¶ 14. Since the disputed facts in this case are not material to the CPA cause of action and Defendants are entitled to judgment on the CPA claims as a matter of law, the District Court did not err in granting Defendants’ motion for partial summary judgment. CONCLUSION ¶26 For the foregoing reasons, we affirm the District Court’s November 7, 2014 Order granting Defendants’ motion in limine to exclude Plaintiffs expert, and the District Court’s July 23, 2014 Order granting Defendants’ motion for partial summary judgment. JUSTICES McKINNON, SHEA, WHEAT and RICE concur. Dr. Hahn is not a medical doctor, so he is unqualified to render expert testimony in this case, regardless of which state licensed him as a podiatrist. However, we encourage the Legislature to revisit the distinction between a “physician” for purposes of licensing in Montana and a “physician” for purposes of qualification to give expert testimony. The cross-referencing of § 37-3-102(11), MCA, in § 26-2-601(2), MCA, could be read as imposing upon testifying experts in medical malpractice cases a requirement that they be licensed to practice medicine in Montana, which we do not believe was the Legislature’s intent.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 After a three-day trial before the Eighth Judicial District Court, Cascade County, a jury found Travis Morgan McAlister (McAlister) guilty of sexual intercourse without consent, a felony, pursuant to § 45-5-503, MCA (2011). Due to the age of the victim, McAlister was sentenced to 100 years in prison and is not eligible for parole for the first 50 years. He challenges his conviction. We affirm, addressing the following issues: 1. Did the District Court err by denying McAlister’s motions made during trial to dismiss the charge for insufficient evidence? 2. Did McAlister’s trial counsel provide ineffective assistance by failing to call any expert witnesses? PROCEDURAL AND FACTUAL BACKGROUND ¶2 This case was put into motion by a call to the child abuse hotline through the division of Child and Family Services, relating that the victim, A.H., had made a disclosure to her grandmother regarding possible sexual abuse. Detective Noah Scott of the Great Falls Police Department received the referral and that same afternoon conducted a forensic interview with A.H., who was four years old at that time. A.H. made several statements regarding McAlister, whom she referred to as “Dad,” “Daddy,” or “Travis”; he is not her biological father. A.H. told Detective Scott that she and McAlister “watch private movies” and “sometimes get naked on them.” A.H. stated that her dad would “kiss her peepee,” and that “he just sticks [his peepee] in my peepee,” and that sometimes it “hurts my peepee.” A.H. also made statements during the interview that were contradictory and nonsensical. When asked where she had sex, A.H. stated that she would have sex at her daycare and “the whole world.” She also stated that she had sex with her “brother” (A.H. did not have any brothers at the time), that she would have sex “in that building,” and in her closet. Detective Scott also interviewed McAlister, after which McAlister was arrested and charged with one count of sexual intercourse without consent and one count of felony sexual assault, arising out of conduct that allegedly occurred between March 1, 2010, and March 27, 2012. ¶3 At trial, A.H., who was then five years old, testified. While on the stand, she stated that she would watch “sexy movies” while staying at McAlister’s house. She stated that “we did the same thing as them [the movies], but I didn’t want to.” When asked what she did that was on the movies, A.H. answered that “He put his peepee in my mouth and my peepee.” As direct examination continued, A.H. repeated this testimony several times. A.H. also testified that she “had sex” with “a friend” at daycare, and “with [her] big frog” in the closet at home. ¶4 The State called four expert witnesses to testify at trial. Dr. Robert Page, a specialist in forensic psychology, testified that, after watching the video of A.H.’s forensic interview with Detective Scott, it was his opinion that A.H.’s behaviors during the interview were “more consistent with a memory of an event that occurred that is attached to an aversion,” rather than appearing to be a disclosure of a mere fantasy or coached allegations. Dr. Page further testified that A.H.’s graphic descriptions in the forensic interview of an erect male penis and the act of ejaculation were significant, as a four year old child would not normally have experienced this, and would be unlikely to fabricate a description in that level of detail, bolstering his opinion that A.H.’s disclosures were not fabricated. Dr. Nancy Maynard performed a physical examination on A.H. shortly after the report was made. Dr. Maynard reported that she found no physical abnormalities, such as scars, skin tags, or other injuries that would be signs that sexual abuse occurred, finding an intact hymen with no signs of past healing. Maynard noted, however, that in the majority of sexual abuse cases, professionals do not find such physical evidence of abuse. Dr. Wendy Dutton testified as to the victimization process, or the process that leads up to sexual abuse of a child and the aftermath of the abuse, and about the ways in which a victim might disclose sexual abuse. Finally, Dr. Charlene Sabin, a behavioral pediatrician, testified that “I find it upsetting that [A.H.’s] child sexual behavior has gotten so intense, so extreme, and so entrenched. ... It’s not in the range of normal child sexual behavior.” While she could not give an opinion as to whether A.H. had been sexually abused by McAlister specifically, Dr. Sabin testified that something must have happened to result in A.H.’s behaviors. ¶5 After the State rested, McAlister’s counsel moved for dismissal based on insufficient evidence, which the District Court denied. The defense proceeded and McAlister testified on his own behalf. His testimony established that he had a father-like relationship with A.H., and that he would provide childcare for A.H., sometimes overnight. McAlister adamantly denied having sexual intercourse with or sexually assaulting A.H. At the conclusion of his testimony, McAlister’s counsel renewed his motion for dismissal for insufficient evidence, which the District Court again denied. The case was then submitted to the jury, which found McAlister guilty. McAlister appeals. STANDARDS OF REVIEW ¶6 We review the denial of a motion to dismiss a criminal charge for insufficient evidence de novo. State v. Swann, 2007 MT 126, ¶¶ 18-19, 337 Mont. 326, 160 P.3d 511. A motion to dismiss for insufficient evidence is appropriate only if, viewing the evidence in the light most favorable to the prosecution, there is not sufficient evidence upon which a rational trier of fact could find the essential elements of the crime beyond a reasonable doubt. State v. Rosling, 2008 MT 62, ¶ 35, 342 Mont. 1, 180 P.3d 1102; § 46-16-403, MCA. ¶7 We address the ineffective assistance of counsel claims as follows: Ineffective assistance of counsel claims constitute mixed questions of law and fact which we review de novo. To prevail on an ineffective assistance of counsel claim, the defendant must show that: (1) his counsel’s performance was deficient, and (2) that counsel’s deficient performance prejudiced him. The defendant must satisfy both prongs of the test, and where the defendant makes an insufficient showing as to one prong of the test, it is unnecessary to address the other prong. State v. Lindberg, 2008 MT 389, ¶ 26, 347 Mont. 76, 196 P.3d 1252 (citing Whitlow v. State, 2008 MT 140, ¶¶ 9-11, 343 Mont. 90, 183 P.3d 861) (internal citations omitted). DISCUSSION ¶8 1. Did the District Court err by denying McAlister’s motions made during trial to dismiss the charge for insufficient evidence? ¶9 McAlister argues that the evidence presented by the State was not sufficient to convict him and that his motions to dismiss the charge should have been granted. McAlister notes many contradictions and inconsistencies between A.H.’s statement to Detective Scott and her later testimony at trial, including A.H.’s occasional denials that she had ever engaged in sex or even knew what sex was. He argues that A.H. “never definitively and independently identified] McAlister as having had sexual intercourse with her...” and that the State failed to offer any physical evidence of a crime or that A.H. had even been sexually abused, noting that Dr. Maynard testified that she found no physical signs of scarring or past healing. McAlister argues that his case “is mired in a sea of insufficient evidence.” ¶10 Section 45-5-503(1), MCA (2011), provides that “[a] person who knowingly has sexual intercourse without consent with another person commits the offense of sexual intercourse without consent.” In turn, § 45-2-101(68)(a), MCA (2011), defines “sexual intercourse” as “penetration of the vulva, anus, or mouth of one person by the penis of another person, [or] penetration of the vulva or anus of one person by a body member of another person ....” Instructions submitted to the jury stated that the State was required to prove that McAlister had sexual intercourse with A.H., that McAlister acted knowingly, and that the act of sexual intercourse was without the consent of A.H., although, because A.H. was younger than the age of 16, she was statutorily incapable of giving her consent to sexual intercourse. See § 45-5-501(l)(a)(ii)(D), MCA (2011). The State was thus tasked with proving that McAlister had sexual intercourse with A.H., and that he did so knowingly. See § 45-2-101(35), MCA (2011) (“a person acts knowingly ... when the person is aware of the person’s own conduct....”). The jury found that all of these elements had been proven beyond a reasonable' doubt when convicting McAlister. ¶11 McAlister supports his argument bynecessarilyfocusingonA.H.’s testimony that McAlister did not “touch her peepee” and other like comments. However, A.H. also affirmatively repeated her statement that McAlister had penetrated her several times. After A.H. testified that she would watch “sexy movies” at McAlister’s house, and the prosecutor asked A.H. “And what did you do that was on the movies?” A.H. clearly answered “He put his peepee in my mouth and my peepee.” A.H. repeated this same phrase almost verbatim in response to another question. Later on during direct examination, the State asked, “Did anyone else besides Travis [McAlister] put his peepee in your peepee?” A.H. responded, “No.” ¶12 A.H.’s testimony offers evidence of the necessary elements of the crime of sexual intercourse without consent. Her testimony clearly identified McAlister as the perpetrator and described his actions in sufficient detail to satisfy the statutory definition. Viewing the evidence as a whole and “in the light most favorable to the prosecution,” Rosling, ¶ 35, we conclude it was entirely possible that a rational jury could have found all the essential elements beyond a reasonable doubt, based upon A.H.’s testimony as a whole. While A.H.’s statements were inconsistent at times and included the whimsical or even fantastical, a rationale jury could well have determined that such statements were characteristic of a four or five year old child, but that the substance of her statements about McAlister were truthful. McAlister’s argument challenges the credibility of A.H.’s testimony (her statements “never rose above the level of being ambiguous at best and completely contradictory at worst”), but the “[djeterminations of the credibility of witnesses and the weight of their testimony are within the exclusive province of the jury, and conflicting testimony does not render the evidence insufficient to support a guilty verdict.” State v. Dewitz, 2009 MT 202, ¶ 85, 351 Mont. 182, 212 P.3d 1040 (citations omitted). He also argues that a rational jury could not find the elements beyond a reasonable doubt when “the alleged victim simultaneously presents diametrically opposing testimony.” To the contrary, “[i]t is within the province of the jury to weigh the evidence based on the credibility of the witnesses and determine which version of events should prevail,” even when the conflict arises from the victim’s testimony. State v. Trull, 2006 MT 119, ¶ 20, 332 Mont. 233, 136 P.3d 551 (citing State v. Weigand, 2005 MT 201, ¶ 7, 328 Mont. 198, 119 P.3d 74); State v. Hicks, 2006 MT 71, ¶¶ 25-27, 331 Mont. 471, 133 P.3d 206; State v. Kelley, 2005 MT 200, ¶ 22, 328 Mont. 187, 119 P.3d 67 (“a jury is at liberty to believe all, a part of, or none of the testimony of any witness”). ¶13 McAlister emphasizes that there was no physical evidence offered to prove that A.H. had been penetrated. However, Dr. Maynard testified that this is common in cases of alleged sexual abuse. We have previously upheld a conviction of sexual intercourse without consent based on the identification of the defendant by a child victim that was not confirmed by physical evidence. See State v. Osborne, 1999 MT 149, ¶ 39, 295 Mont. 54, 982 P.2d 1045 (“While there is no direct, physical evidence which links [the defendant] to the crime, the jury could have reasonably concluded from the evidence that [the victim] identified [the defendant] as the person who penetrated her....”). The lack of physical evidence does not negate the sufficiency of A.H.’s oral testimony. ¶14 The District Court did not err in denying McAlister’s motions to dismiss for insufficient evidence. ¶15 2. Did McAlister’s trial counsel provide ineffective assistance by failing to call any expert witnesses? ¶16 McAlister argues that his appointed trial counsel was ineffective because he failed to call an independent expert witness to rebut the expert testimony offered by the State. Before undertaking review, we must first determine whether this issue is properly before us on direct appeal. “[Wjhere ineffective assistance of counsel claims are based on facts of record in the underlying case, they must be raised in the direct appeal; conversely, where the allegations of ineffective assistance of counsel cannot be documented from the record in the underlying case, those claims must be raised by petition for postconviction relief.” Hagen v. State, 1999 MT 8, ¶ 12, 293 Mont. 60, 973 P.2d 233. ¶17 The record indicates that McAlister’s counsel filed a notice of an expert witness one week prior to trial. The District Court issued an order that permitted McAlister to add Dr. Cindy Miller to his list of witnesses. However, defense counsel did not call Dr. Miller at trial, and the record mentions only that she was expected to testify regarding “child psychology, child development[,j and the reliability of the victim’s testimony.” The bare fact that McAlister’s counsel did not call Dr. Miller or another expert witness to testify is not sufficient by itself to establish that his performance was deficient, and the record is silent as to the reasons why defense counsel made these decisions. This Court will not speculate as to the reasons for this action. See State v. Lewis, 2007 MT 16, ¶ 21, 335 Mont. 331, 151 P.3d 883 (“We refuse to speculate on counsel’s errors in light of the presumption favoring a finding that counsel performed effectively. A silent record fails to rebut the strong presumption that counsel provided reasonable professional assistance.”) (internal citations omitted). Because the basis of this ineffectiveness claim is not clear from the record, it is more properly brought by a petition for postconviction relief. See Hagen, ¶ 12. ¶18 Affirmed. CHIEF JUSTICE McGRATH, JUSTICES BAKER, WHEAT and SHEA concur. The State later moved to dismiss the count of sexual assault, and only the count of sexual intercourse without consent went to the jury. A.H.’s competency as a witness is not an issue herein. McAlister also briefly suggests that the District Court’s statement, made when denying his motion to dismiss for insufficiency of the evidence, that the court was “not in a position to judge whether or not it’s beyond a reasonable doubt, it’s just simply whether the evidence is sufficient,” indicates that the court applied the incorrect legal standard when deciding the issue. However, we discern no substantive error in the statement.
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CHIEF JUSTICE McGRATH delivered the Opinion of the Court. ¶1 Anthony Phillip Hancock appeals from the order of the Montana Eighth Judicial District Court, Cascade County, denying his motion to dismiss his 1999 DUI conviction for constitutional infirmity. We affirm but remand for correction of a clerical error in the judgment. ¶2 We address the following issues: ¶3 Issue one: Did the District Court err by denying Hancock’s motion to dismiss a DUI conviction based on his claim that his 1999 DUI conviction, used to support the felony charge, was constitutionally infirm? ¶4 Issue two: Did the District Court err by stating that Hancock was convicted of a DUI rather than a DUI per se? PROCEDURAL AND FACTUAL BACKGROUND ¶5 On May 22, 2013, the State charged by Information Anthony Phillip Hancock (“Hancock”) with driving under the influence of alcohol fourth or subsequent offense (“DUI”), a felony. Section 61-8-731, MCA. The Information provided that Hancock had been convicted of DUI offenses on three previous occasions, once in 1999 and twice in 2004. ¶6 On August 19, 2013, Hancock filed a motion to dismiss the 1999 DUI conviction in Great Falls Municipal Court, alleging that his constitutional right to counsel was violated in that proceeding. In addition to his brief, Hancock filed an affidavit in which he represented that at the initial appearance, he pled not guilty and informed the municipal court that he would retain private counsel. The affidavit also states that at a later date Hancock returned to court and requested court-appointed counsel, which he was denied because it was too late. On the day set for trial, June 2, 1999, Hancock pled guilty to the DUI charge. ¶7 The District Court conducted a hearing on October 21, 2013, to assess Hancock’s assertions regarding the 1999 DUI conviction. Both Hancock and the Hon. Nancy Luth, who presided over Hancock’s 1999 trial, testified. The 1999 proceeding was set in municipal court, which was not a court of record at the time. However, there was a docket sheet with minutes from the initial appearance; Judge Luth explained that the docket sheet indicated that Hancock was advised of his rights. Hancock confirms that he declined a court-appointed attorney at that appearance. There is no record that Hancock requested an attorney following the initial appearance. Judge Luth testified that it was her general practice to grant a request for a court-appointed attorney unless the request was made on the day of trial and thereby requiring that the trial be postponed. ¶8 On November 7,2013, the District Court denied Hancock’s motion to dismiss the 1999 DUI conviction. Hancock pled guilty to the offense of “operation of noncommercial vehicle by person with alcohol concentration of 0.08 or more,” pursuant to § 61-8-406, MCA, reserving his right to appeal the denial of his motion to dismiss. STANDARD OF REVIEW ¶9 The issue concerning the use of prior convictions to support a felony charge of DUI is a question of law and is reviewed de novo. State v. Maine, 2011 MT 90, ¶ 12, 360 Mont. 182, 255 P.3d 64. The district court’s factual findings regarding the validity of a prior conviction are reviewed under the clearly erroneous standard. Maine, ¶ 12. DISCUSSION ¶10 Issue one: Did the District Court err by denying Hancock’s motion to dismiss a DUI conviction based on his claim that his 1999 DUI conviction, used to support the felony charge, was constitutionally infirm? ¶11 The State may not rely on a constitutionally infirm conviction for sentence enhancement purposes because doing so violates a defendant’s due process rights. State v. Haas, 2011 MT 296, ¶ 14, 363 Mont. 8, 265 P.3d 1221 (internal citations omitted). In State v. Okland, 283 Mont. 10, 941 P.2d 431 (1997), we outlined a procedural framework for assessing collateral challenges to previous convictions. Okland, 283 Mont. at 18, 941 P.2d at 436. The framework establishes that a “presumption of [validity] attaches to a prior conviction during a collateral [challenge]” and a defendant who raises the constitutional validity of the prior conviction “has the burden of producing direct evidence of its invalidity.” Okland, 283 Mont. at 18, 941 P.2d at 436. ¶12 In State v. Howard, 2002 MT 276, ¶ 3, 312 Mont. 359, 59 P.3d 1075, and State v. Walker, 2008 MT 244, ¶ 14, 344 Mont. 477, 188 P.3d 1069, we held that an unequivocal statement in the form of a sworn affidavit is sufficient direct evidence to overcome the presumption of validity. Nevertheless, the defendant has the ultimate burden of proof to both produce and persuade “by a preponderance of the evidence that the conviction is invalid.” Maine, ¶ 12. Consequently to meet his or her burden of proof, [he or she] may not simply point to an ambiguous or silent record, but must come forward with affirmative evidence establishing that the prior conviction was obtained in violation of the Constitution. Self-serving statements by the defendant that his or her conviction is infirm are insufficient to overcome the presumption of regularity and bar the use of the conviction for enhancement. Maine, ¶ 34. A defendant’s affidavit merely alleging the unconstitutionality of a previous conviction is not sufficient to rebut the presumption of validity of the conviction. State v. Nixon, 2012 MT 316, ¶ 19, 367 Mont. 495, 291 P.3d 1154. ¶13 The District Court correctly applied this standard in considering Hancock’s 1999 DUI conviction. The District Court held an evidentiary hearing during which both Hancock and Judge Luth testified about events prior to the 1999 DUI conviction. In 1999, the Municipal Court in Great Falls was not a court of record. The District Court had to rely on the credibility of the witnesses testifying about the events that occurred 14 years earlier. ¶14 Hancock testified that he saw Judge Luth prior to trial and requested court-appointed counsel. However, according to Hancock, his request for counsel was denied because he was too late in making the request. Judge Luth testified that she had no recollection of Hancock but she presented what she considered the likely course of events based on her experience and custom as municipal court judge for 25 years. Hancock does not dispute that he was advised of his rights and that he initially declined a court-appointed attorney. There are no court records that suggest that he, at a later time, requested an attorney. Judge Luth testified that it is unlikely that he appeared prior to his trial date to request an attorney, and that it is her common practice to appoint counsel if requested prior to the date of trial. In light of Judge Luth’s testimony, we are not convinced by Hancock’s assertions in his affidavit and testimony that he timely requested appointment of counsel. Hancock has not satisfied his burden of proof. Nixon, ¶¶ 20-21. Given the testimony and evidence presented by Hancock to the District Court at the hearing, we cannot conclude that the court’s factual findings constitute clear error. ¶15 Issue Two: Did the District Court err by stating that Hancock was convicted of a DUI rather than a DUI per se? ¶16 Pursuant to § 46-20-703, MCA, this Court may “modify the judgment or order” that originated the appeal. We have in the past directed the district court to correct clerical errors in the record. State v. Goff, 2011 MT 6, ¶¶ 32-33, 359 Mont. 107, 247 P.3d 715. In this case, we note that there is a difference between the offense to which Hancock pled and the offense stated in the District Court’s judgment. Although it has no bearing upon the integrity of the felony conviction pursuant to § 61-8-731, MCA, Hancock technically pled to a DUI per se pursuant to § 61-8-406, MCA, as his fourth offense. Thus, to avoid any confusion and future litigation, we remand this cause to the District Court with instructions to amend the judgment so that it states the correct offense for which Hancock was convicted. ¶17 We affirm the order of the District Court and remand for further proceedings consistent with this Opinion. JUSTICES WHEAT, BAKER, McKINNON and SHEA concur.
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Jason D. Allport appeals from the judgment and sentence of the Nineteenth Judicial District Court, Lincoln County, which sentenced him to a 13-month commitment at the Montana Department of Corrections (DOC) followed by a five-year suspended commitment at the DOC for driving under the influence of alcohol (DUI), a fifth-offense felony. We affirm. ¶2 The issue on appeal: Whether the District Court correctly ruled that the result of Allport’s blood-alcohol test was admissible at trial because Allport’s blood sample was taken in compliance with § 61-8-405(1), MCA. PROCEDURAL AND FACTUAL BACKGROUND ¶3 On December 17, 2013, at approximately 9:30 p.m., Lincoln County Sheriffs Deputy Boyd White observed a moving vehicle with the driver-side headlight out. Deputy White pulled the vehicle over and, when he approached, he found Allport alone in the vehicle looking at Deputy White “with a blank stare.” Deputy White could smell alcohol from inside Allport’s vehicle, and he noticed that Allport’s eyes were “kind of glassy and bloodshot.” Deputy White asked Allport if he had been drinking any alcohol, and Allport said he had one shot five hours earlier. Deputy White asked Allport to step out of the vehicle so Deputy White could conduct field sobriety tests. Deputy White was unable to complete the horizontal gaze nystagmus test, and Allport failed the other field sobriety tests. ¶4 When Allport was inside the patrol vehicle, Deputy White read him the Implied Consent Advisory. Allport refused a blood-alcohol test. Deputy White applied for and was granted a search warrant to get a sample of Allport’s blood. Deputy White drove Allport to Cabinet Peaks Medical Center in Libby, and at approximately 11:30 p.m. medical technologist David Baker took a blood sample from Allport. ¶5 Baker regularly takes blood samples and conducts a number of laboratory tests for the Medical Center. Baker has a Bachelor’s degree in clinical laboratory science, and he is a trained phlebotomist. On the night of December 17, 2013, Baker was working alone at the Medical Center. Baker testified at trial that “[t]here is no one supervising me at night but our lab has a manager and it is overseen by an MD from Kalispell.” Baker testified that the lab manager is his direct supervisor. After taking the sample of Allport’s blood, Baker filled out the required paperwork, sealed the sample, and returned the sample to Deputy White. Allport’s blood sample was sent to the State Crime Lab for analysis. The State Crime Lab reported that Allport’s blood sample contained a blood-alcohol content of 0.237%. ¶6 On January 2, 2014, Allport was charged by information with DUI, or alternatively, with operating a vehicle with a blood-alcohol concentration of 0.08 or more. The District Court held a jury trial on June 3 and 4, 2014. At trial, Allport objected to the admission of his blood-alcohol test results. Allport contended that the blood sample was not taken by a physician, registered nurse, or a qualified person acting under the supervision of a physician or registered nurse, as required by § 61-8-405(1), MCA. The District Court overruled the objection, stating that under State v. Merry, 2008 MT 288, 345 Mont. 390, 191 P.3d 428, the supervision of a nonresident physician meets the requirements of § 61-8-405(1), MCA. The jury found Allport guilty of DUI. ¶7 On September 15, 2014, Allport was sentenced to a 13-month commitment to the DOC and a consecutive five-year suspended commitment to the DOC for a fifth-offense felony DUI. Allport appeals. STANDARD OF REVIEW ¶8 “The District Court’s interpretation of § 61-8-405, MCA, presents a conclusion of law which we review for correctness.” Merry, ¶ 12. DISCUSSION ¶9 Whether the District Court correctly ruled that the result of Allport’s blood-alcohol test was admissible at trial because Allport’s blood sample was taken in compliance with § 61-8-405(1), MCA. ¶10 Allport argues that his blood sample was not taken in compliance with § 61-8-405(1), MCA. The statute states in relevant part: Only a physician, registered nurse, or other qualified person acting under the supervision and direction of a physician or registered nurse may, at the request of a peace officer, withdraw blood for the purpose of determining any measured amount or detected presence of alcohol, drugs, or any combination of alcohol and drugs in the person. Section 61-8-405(1), MCA. “[A] qualified person who draws blood while subject to offsite or on-call supervision can satisfy the statutory requirement that the person be ‘acting under the supervision and direction of a physician or registered nurse ....’ ” Merry, ¶ 19 (quoting § 61-8-405(1), MCA). ¶11 According to Allport, Merry requires that a supervising physician or registered nurse must be present or on-call at the time a blood draw is performed, otherwise a qualified person is not “acting under the supervision and direction of a physician or registered nurse” under § 61-8-405(1), MCA. Allport argues that because Baker testified that he is not directly supervised by a present or on-call registered nurse or physician, his blood sample was taken in violation of § 61-8-405(1), MCA. Therefore, Allport argues that the results of his blood-alcohol test were improperly admitted at trial. ¶12 “[W]hen interpreting a statute, we seek to implement the objectives the Legislature sought to achieve, and if the legislative intent can be determined from the plain language of the statute, the plain language controls.'' Montanans for Justice v. State, 2006 MT 277, ¶ 60, 334 Mont. 237, 146 P.3d 759. In Merry, this Court recognized that the plain meaning of the phrase “under the supervision and direction” was broad enough to encompass multiple interpretations. Merry, ¶ 16. ¶13 “When the legislative intent cannot be readily derived from the plain language, we review the legislative history and abide by the intentions reflected therein.” Montanans for Justice, ¶ 60. In 1981, the Legislature added the language allowing “other qualified person[s] acting under the supervision and direction of a physician or registered nurse” to take blood samples under § 61-8-405(1), MCA. 1981 Mont. Laws ch. 103 § 4. Senator Stimatz of Butte introduced the bill amending § 61-8-405(1), MCA, to the Montana Senate at the request of the Montana Department of Justice (DOJ). Mont. S. Jud. Comm., Hearing on S.B. 111, 47th Reg. Sess., Mins. at 1 (Jan. 19, 1981). The DOJ requested the bill because blood-alcohol test results were being challenged in court if a blood sample was not drawn by a doctor or registered nurse. Mont. H. Jud. Comm., Hearing on S.B. 111, 47th Reg. Sess., Mins. at 3 (Mar. 5, 1981). Chad Smith of the Montana Hospital Association testified that blood samples are usually drawn by lab technicians. Mont. H. Jud. Comm., Mins. at 3. ¶14 As we recognized in Merry, the bill’s sponsors in both the Senate and the House focused on allowing qualified persons to take blood samples, rather than the supervision requirements. Merry, ¶ 18. In the Senate, Senator Stimatz “suggest[ed] that qualified persons, such as laboratory technicians, be allowed to take blood samples to determine alcohol level of the blood.” Mont. S. Jud. Comm., Mins. at 1. In the House, Representative Daily said the bill “will allow a person other than a doctor or a registered nurse to draw blood. A lab technician who specializes in this could withdraw blood.” Mont. H. Jud. Comm., Mins. at 2. Neither sponsor “hinged the lab technician’s ability to draw blood on the physical presence of a physician or RN.” Merry, ¶ 18. ¶15 Furthermore, during the Senate hearing on the bill, Senator Mazurek asked if even broader language to define persons who could take blood samples would be helpful. Larry Majerus of DO J stated that “the main intent was to allow the medical technicians to be included, not to take the process out of the hospital environment where such qualified persons would not be available.” Mont. S. Jud. Comm., Mins. at 1-2. ¶16 In this case, Baker is a medical technologist, a certified phlebotomist, and he works at Cabinet Peaks Medical Center, a hospital. Although Baker does not work under the direct supervision of an MD or a registered nurse, he is a qualified person working in a hospital environment. Contrary to Allport’s assertion that a physician or registered nurse must be present or on-call to comply with § 61-8-405(1), MCA, we concluded in Merry that “offsite or on-call supervision” satisfies § 61-8-405(1), MCA. Merry, ¶ 19 (emphasis added). Cabinet Peaks Medical Center is supervised by an offsite MD in Kalispell. Allport’s blood sample was taken in compliance with § 61-8-405(1), MCA, and the results of the blood-alcohol test performed on the blood sample were properly admitted at trial. CONCLUSION ¶17 The District Court was correct when it ruled that Allport’s blood sample was taken in compliance with § 61-8-405(1), MCA, and the results of the blood-alcohol test performed on the blood sample were properly admitted at trial. Affirmed. CHIEF JUSTICE McGRATH, JUSTICES COTTER, WHEAT and RICE concur.
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JUSTICE BAKER delivered the Opinion of the Court. ¶1 Laurence Alan Stewart II appeals his conviction in the Eighth Judicial District Court, Cascade County, of seven counts of attempted deliberate homicide. Stewart raises the following issue on appeal: Whether the District Court erred when it denied Stewart’s request to instruct the jury on misdemeanor assault as a lesser-included offense of attempted deliberate homicide. ¶2 We affirm. PROCEDURAL AND FACTUAL BACKGROUND ¶3 On the morning of November 1, 2012, Montana Highway Patrol Trooper Joe DeJong stopped Stewart for speeding on Highway 87 outside Stanford, Montana. Stewart handed his driver’s license to Trooper DeJong, who took the license to his patrol car. Trooper DeJong learned from dispatch that Virginia law enforcement wanted to speak with Stewart in relation to an investigation in Virginia. In accordance with standard operating procedure, Trooper DeJong requested that another officer come to the scene before re-engaging Stewart. Before the back-up officer arrived, however, Stewart drove off in the direction of Great Falls. 1 ¶4 Trooper DeJong activated his lights and siren and pursued Stewart along the highway. Several minutes into the pursuit, Stewart threw a homemade pipe bomb out of the driver’s side window of his car. The bomb exploded approximately 100-150 yards ahead of Trooper De Jong’s car. Trooper DeJong saw the explosion and heard pieces of debris hit his car. Concerned about additional bombs, Trooper DeJong slowed to keep 150-200 yards between his car and Stewart’s and radioed for additional assistance. ¶5 After Stewart turned off Highway 87 onto a dirt road, Trooper Goodemoot joined in the pursuit. Stewart threw another pipe bomb out of his window. Upon seeing the smoke from the second pipe bomb, the troopers stopped 150-200 yards away and waited for the bomb to detonate. Trooper DeJong testified that he stayed a distance away from the bomb “because [he] did not want to die.” When the bomb detonated, the troopers heard a “big boom” and could hear shrapnel “zing by [their] cars.” Trooper DeJong testified that he could feel “the concussion” when the bomb went off. At this point, because they were “very concerned” about more pipe bombs, the troopers stayed even further back from Stewart’s car — approximately three to four miles. ¶6 After some distance, Stewart turned back onto Highway 87 where another Highway Patrol Trooper had laid spike strips over the highway. Despite swerving to avoid the spikes, Stewart drove over them, puncturing his tires. Stewart continued to drive as multiple officers from the Highway Patrol, the Cascade County Sheriffs Department, and the Judith Basin County Sheriffs Department pursued him. ¶7 As the chase continued, Stewart threw several more pipe bombs out of his window. Responding officers had to swerve to avoid hitting the bombs. Some bombs, however, detonated very near several of their cars, throwing shrapnel along the side of the cars. One officer testified that his car shook when he drove by one of the explosions. ¶8 Eventually the tires on Stewart’s car began to come off of their rims and he turned off of the highway. An officer rammed his patrol car into the back of Stewart’s car, sending it into the ditch partially down a slope and into a fence. Stewart got out of the car with a handgun and ran. The officers chased Stewart, surrounded him, tased him, and finally apprehended him. No one fired any shots. As he was being escorted to Trooper De Jong’s patrol car, Stewart told the officers he did not mean to hurt anyone. ¶9 None of the officers were harmed during the pursuit and eventual apprehension of Stewart. During the “render safe” process that followed, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Agent Brad Engelbert discovered a total of nine additional pipe bombs — seven in Stewart’s car and two along the roadway — that were undetonated. The bombs were constructed from galvanized metal pipe, end caps, cannon fuse, and plastic tape, and were filled with hex nuts, dry-wall screws, and ball bearings. ¶10 On November 16,2012, the State charged Stewart by Information with seven counts of Attempted Deliberate Homicide, in violation of §§ 45-4-103 and 45-5-102, MCA. The court held a jury trial from April 29 through May 6, 2013. The jury heard testimony from the officers involved in the pursuit and saw video footage from dashboard cameras of their vehicles. The video footage captured several of the explosions. During closing argument, the State played a portion of a video obtained by federal law enforcement agencies in which Stewart previously had made threatening statements that if law enforcement came for him, “people will die.” ¶ 11 During the settling of jury instructions, Stewart asked the District Court to instruct the jury on various lesser-included offenses, including misdemeanor assault. After hearing argument from both counsel, the court concluded that, as a matter of law, misdemeanor assault is a lesser-included offense of deliberate homicide. The court also concluded, however, that the evidence at trial did not support a misdemeanor assault instruction, “however formulated.” The court instead decided to give an instruction on the lesser-included offense of attempted aggravated assault. Stewart asked the jury to acquit him on Counts I-IV, and to convict him on the lesser-included offense of attempted aggravated assault on Counts V-VII. ¶12 The jury found Stewart guilty on all seven counts of attempted deliberate homicide. The District Court sentenced Stewart to serve a life term in prison on each count and declared him ineligible for parole. Stewart appeals. STAJNTDARD OF REVIEW ¶13 We review for abuse of discretion a district court’s refusal to give an instruction on a lesser-included offense. State v. Johnson, 2008 MT 227, ¶ 12, 344 Mont. 313, 187 P.3d 662. A district court abuses its discretion if it acts arbitrarily without conscientious judgment or exceeds the bounds of reason. State v. McLaughlin, 2009 MT 211, ¶ 9, 351 Mont. 282, 210 P.3d 694. A district court has broad discretion when it instructs the jury; we review jury instructions in criminal cases to determine whether the instructions, as a whole, fully and fairly instruct the jury on the law applicable to the case. McLaughlin, ¶10. DISCUSSION ¶14 Whether the District Court erred when it denied Stewart’s request to instruct the jury on misdemeanor assault as a lesser-included offense of attempted deliberate homicide. ¶15 A defendant is entitled to a lesser-included offense instruction if: 1) the offense constitutes an included offense as defined by § 46-1-202(9), MCA, and 2) there is sufficient evidence to support an instruction on the lesser-included offense. State v. Cameron, 2005 MT 32, ¶ 20, 326 Mont. 51, 106 P.3d 1189. In other words, the court must give a lesser-included offense instruction if the party properly requests it and if “the jury, based on the evidence, could be warranted in finding the defendant guilty of a lesser included offense.” Section 46-16-607(2), MCA. ¶16 A person commits misdemeanor assault when he purposely or knowingly causes bodily injury, to another or the reasonable apprehension of bodily injury in another. Section 45-5-201, MCA. “Bodily injury means physical pain, illness, or an impairment of physical condition and includes mental illness or impairment.” Section 45-2-101(5), MCA. A person commits aggravated assault when he “purposely or knowingly causes serious bodily injury to another or purposely or knowingly, with the use of physical force or contact, causes reasonable apprehension of serious bodily injury or death in another.” Section 45-5-202, MCA. Serious bodily injury means bodily injury that: ' (i) creates a substantial risk of death; (ii) causes serious permanent disfigurement or protracted loss or impairment of the function or process of a bodily member or organ;or (iii) at the time of injury, can reasonably be expected to result in serious permanent disfigurement or protracted loss or impairment of the function or process of a bodily member or organ. (b) The term includes serious mental illness or impairment. Section 45-2-101(66), MCA. “A person commits the offense of attempt, when with the purpose to commit a specific offense, the person does any act toward the commission of the offense.” Section 45-4-103(1), MCA. ¶17 “A defendant may be convicted only of the ‘greatest included offense about which there is no reasonable doubt.’ ” State v. Castle, 285 Mont. 363, 367, 948 P.2d 688, 690 (1997) (quoting § 46-16-606, MCA). We have held, and the State does not dispute, that misdemeanor assault is a lesser-included offense of deliberate homicide. Castle, 285 Mont. at 368-69, 948 P.2d at 691. In State v. Feltz, 2010 MT 48, 355 Mont. 308, 227 P.3d 1035, and in State v. Reiner, 179 Mont. 239, 587 P.2d 950 (1978), we considered the issue of misdemeanor assault as a lesser-included offense of aggravated or felony assault. In both cases we recognized that whether bodily injury is serious, within the meaning of the law, is a question for the jury to determine. Feltz, ¶ 25; Reiner, 179 Mont. at 252, 587 P.2d at 958. The trial court need not instruct the jury on misdemeanor assault, however, if the evidence shows that the only type of injury that would be feared is serious bodily injury. Reiner, 179 Mont. at 253, 587 P.2d at 958. ¶18 Stewart argued at trial that there was sufficient evidence for a misdemeanor assault instruction and that the jury reasonably could conclude that there was a risk of only bodily injury, as opposed to serious bodily injury. Stewart noted that the State “never put on any expert that talked about the strength of the explosive potential of the bombs that were recovered from Mr. Stewart’s car, or the two that were found that never exploded.” The court denied Stewart’s request on the ground that the evidence “doesn’t support the concept of intent to either cause mere bodily injury or to cause reasonable apprehension of mere bodily injury.” ¶19 Stewart’s counsel requested at a minimum that the court instruct the jury on misdemeanor assault as a lesser-included offense on Counts I and II — the bombs that exploded in front of Trooper DeJong and Trooper Goodemoot. The court denied the request on grounds that the “manifest dangerous nature” of pipe bombs, together with the officers’ proximity to the bombs as they pursued Stewart, did not support a reasonable conclusion that there was an intent simply to “either scare [the troopers] by reference to mere bodily injury or to attempt mere bodily injury as distinct from the risk or actuality of serious bodily injury.” The District Court instead instructed on the lesser-included offense of attempted aggravated assault with respect to all charges. ¶20 On appeal, Stewart argues that evidence supported his defense that he “was trying only to scare the officers away during the pursuit or cause at most bodily injury — not serious bodily injury or death.” The question whether he intended or attempted to cause serious bodily injury or lesser bodily injury, Stewart claims, was one of fact for the jury. Stewart argues that the court’s refusal based on the “manifest dangerous nature of pipe bombs” was improper because it “took that question of fact out of the jury’s hands.” Stewart asserts that the detonations shown in the pictures and videos “were not massive explosions,” and that there was “no expert testimony to inform the jury about the capacity of these pipe bombs, their force, or their actual dangerousness.” Stewart underscores that the bombs caused no injuries and that he “repeatedly stated he had not intended to hurt anyone.” Therefore, Stewart contends that the District Court erred when it “usurped the jury’s role in making that determination.” ¶21 Stewart relies on Feltz to support his assertions. In Feltz, the defendant was charged with felony assault with a weapon for wielding a knife at his neighbors while swearing and calling them names. Feltz, ¶¶ 5,11. The district court denied the defendant’s request for a lesser-included offense instruction on misdemeanor assault. Feltz, ¶ 12. We held that the district court erred in refusing the instruction because there was evidence to support a fear of bodily injury. We reasoned that “the size and type of knife used, the way [the defendant] held it, whether he displayed it prominently, and what [the defendant] said while doing so were in dispute.” Feltz, ¶ 28. Moreover, the victim did not testify that she feared for her life. Feltz, ¶ 28. ¶22 In Reiner, the defendant was armed with a .357 Magnum revolver and threatened to shoot and kill suspected trespassers on the property he was caretaking. Reiner, 179 Mont. at 242-43, 578 P.2d at 952-53. The defendant fired two shots on the ground near where the suspected trespassers were standing. The State charged him with three counts of aggravated assault. Reiner, 179 Mont. at 243, 587 P.2d at 953. The district court denied the defendant’s request for a lesser-included offense instruction on misdemeanor assault. Reiner, 179 Mont. at 251, 587 P.2d at 957. We upheld the court’s refusal of the instruction because the evidence did not support that the victims were at risk of bodily injury; rather, it was “clear that defendant put his victims in reasonable apprehension of serious bodily injury by his menacing use of a .357 Magnum revolver.” Reiner, 179 Mont. at 253, 587 P.2d at 958. Wé distinguished Feltz because the jury would not have been warranted in finding that the defendant’s actions could have caused reasonable apprehension of only bodily harm. Reiner, 179 Mont. at 253, 587 P.2d at 958. ¶23 As in Reiner, we conclude that the District Court did not abuse its discretion because the evidence did not warrant a conviction of any offense lesser than the two offenses on which the trial court gave instructions. Stewart lit the fuses on seven pipe bombs and tossed them into the paths of oncoming law enforcement vehicles. The pipe bombs were filled with materials that easily would cause serious bodily injury if a bomb had detonated in contact with a vehicle. Stewart’s argument that the State should have provided expert testimony about the “actual dangerousness” of pipe bombs is unpersuasive. Videos show the bombs exploding with considerable force. The videos and witness testimony demonstrate that upon explosion, shrapnel from the bombs flew substantial distances from the detonation site. Multiple law enforcement officers testified that they feared for their lives. Stewart previously had recorded a video in which he made threats to kill law enforcement officers. Although Stewart claims that he did not intend to hurt anyone, the jury would not have been warranted in finding that Stewart purposely or knowingly caused only reasonable apprehension of bodily injury, as opposed to reasonable apprehension of or attempt to cause serious bodily injury or death. ¶24 The trial court did not act arbitrarily, without conscientious exercise of judgment, or exceed the bounds of reason when it determined that the “manifest dangerous nature of pipe bombs” and the officers’ proximity to the bombs supported the jury’s consideration of only the offenses of attempted deliberate homicide or attempted aggravated assault. ¶25 We conclude further that the District Court’s refusal to instruct the jury on misdemeanor assault did not prejudice Stewart’s substantial rights. Despite an instruction on the lesser-included offense of attempted aggravated assault, the jury rejected that lesser charge in favor of attempted deliberate homicide on all seven counts. Given this rejection, Stewart’s case does not present “the situation where the jury, convinced that the defendant is guilty of some crime, although not necessarily the crime charged, convicts the defendant rather than let his action go unpunished simply because the only alternative was acquittal.” Castle, 285 Mont. at 367, 948 P.2d at 690 (citing State v. Gopher, 194 Mont. 227, 231, 633 P.2d 1195, 1197-98 (1981)). CONCLUSION ¶26 The District Court did not abuse its discretion in denying Stewart’s request to instruct the jury on misdemeanor assault as a lesser-included offense of deliberate homicide. Accordingly, the Judgment is affirmed. CHIEF JUSTICE McGRATH, JUSTICES COTTER, WHEAT and SHEA concur.
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JUSTICE SHEA delivered the Opinion of the Court. ¶1 Creed Miles Evans II appeals orders by the Eighth Judicial District Court, Cascade County, adopting the Standing Master’s declaratory judgment that Evans’ and Dava Bliss’ Antenuptial Agreement (Agreement) is valid and enforceable; denying Evans’ motion to alter or amend the District Court’s adoption of the Standing Master’s declaratory judgment; and adopting the Standing Master’s findings of fact, conclusions of law, and decree of dissolution. ¶2 We restate the issues on appeal as follows: 1. Whether the District Court erred in finding the Agreement valid and enforceable. 2. Whether the District Court erred or abused its discretion in determining that more than 150 firearms belonged to Bliss. ¶3 We affirm. PROCEDURAL AND FACTUAL BACKGROUND ¶4 Evans and Bliss were married on October 31, 1996. Their marriage was dissolved in 2015. The Agreement is dated October 30, 1996, one day before Bliss and Evans were married. It contains both parties’ notarized signatures. The Agreement provides that all property held individually by a party before and during the marriage remains that party’s sole property upon dissolution. ¶5 During the dissolution proceedings before the Standing Master, Bliss filed a motion for a declaratory judgment that the Agreement governed the distribution and allocation of marital property and debt. Evans filed a response to Bliss’ motion, disputing the validity of the Agreement. On January 18, 2013, after conducting a hearing, the Standing Master issued a declaratory judgment that the Agreement was enforceable. ¶6 The Standing Master’s declaratory judgment contained the following relevant factual findings: The Agreement was signed by Bliss and Evans on October 30,1996, before notary Debbie Hicks in Conrad, Montana. Before Evans signed the Agreement, he met with an attorney in Conrad to obtain independent legal advice. There was only one original Agreement signed by the parties. The Agreement incorporated two exhibits — Exhibit A and Exhibit B — which listed assets compiled from information sent by Bliss and Evans, respectively. Dale Keil, the attorney who prepared the Agreement, retained the original Agreement with its exhibits in his files. Keil credibly testified that the Agreement admitted as Bliss’ Exhibit 1 during the dissolution hearing was the Agreement signed by the parties on October 30, 1996, and was unaltered and in its original condition. Two assets owned by Bliss at the time of marriage — a Scottish Fold cat-breeding business and a pet-grooming business — were not listed in the Agreement; however, Evans was aware of the existence of both. In an October 14, 2005 affidavit, Evans acknowledged the existence and enforceability of the Agreement and stated that he signed the Agreement “after careful consideration and of my own free will.” ¶7 Based on these findings, the Standing Master concluded that Bliss’ Exhibit 1 was a true and correct copy of the Agreement. The Standing Master further concluded that the parties signed the Agreement before the wedding, and that Evans entered into the Agreement after careful consideration and of his own free will. Therefore, the Standing Master concluded that the Agreement was valid and enforceable and governed the rights between Bliss and Evans .in the dissolution of their marriage. ¶8 On March 27, 2013, after reviewing the record and holding a hearing, the District Court issued an order affirming and adopting the Standing Master’s declaratory judgment. The District Court determined that the Standing Master’s findings of fact were not clearly erroneous, her conclusions of law were correct, she did not abuse her discretion, and the interests of justice did not warrant the taking of supplemental evidence upon review. Evans filed a motion to alter or amend the District Court’s order. On June 13,2013, the District Court denied Evans’ motion. ¶9 The dissolution proceeding continued and, on January 7,2015, the Standing Master issued her findings of fact, conclusions of law, and decree of dissolution. The Standing Master reiterated many of the facts in her declaratory judgment and made additional findings regarding the division of the parties’ personal property. Relevant to the issues before us, the Standing Master made the following findings regarding ownership of 186 firearms: Evans is prohibited by federal court order from owning firearms and ammunition due to his conviction of a federal felony. This includes all breech-loading guns, which are “firearms” under federal law. Before the parties’ marriage, Evans gifted a number of breech-loading guns and parts to Bliss due to his conviction. Bliss kept these firearms and purchased additional breech-loading guns at Evans’ suggestion. Evans legally cannot possess these firearms, and they belong to Bliss. Though Evans is prohibited from owning breech-loading guns, he is not prohibited from owning muzzle-loading guns because they are not considered “firearms” under federal law. Bliss was in possession of twenty-six muzzle-loading guns that belong to Evans. ¶10 On June 4, 2015, after holding a hearing, the District Court affirmed and adopted the Standing Master’s findings of fact, conclusions of law, and decree of dissolution. The District Court found that the Standing Master’s findings of fact were not clearly erroneous, her conclusions of law were correct, and she did not abuse her discretion. ¶11 Evans appeals the District Court’s March 27,2013 order adopting the Standing Master’s declaratory judgment; its June 13, 2013 order denying his motion to alter or amend; and its June 4, 2015 order adopting the Standing Master’s findings of fact, conclusions of law, and decree of dissolution. Evans contends that the District Court erred in finding the Agreement valid and enforceable and in finding that all breech-loading firearms belong to Bliss. STANDARDS OF REVIEW ¶12 We review de novo a district court’s decision to adopt a standing master’s report to determine whether it applied the correct standards of review to the standing master’s findings of fact and conclusions of law. Patton v. Patton, 2015 MT 7, ¶ 17, 378 Mont. 22, 340 P.3d 1242. We apply the same standards of review to an adopted standing master’s report that we do to any other district court order. Maloney v. Home & Inv. Ctr., Inc., 2000 MT 34, ¶ 28, 298 Mont. 213, 994 P.2d 1124. ¶13 In reviewing a district court’s division of marital property, we first determine whether the findings of fact upon which the division is based are clearly erroneous and whether the district court’s conclusions of law are correct. Patton, ¶ 18. “A finding is clearly erroneous if it is not supported by substantial evidence, if the district court misapprehended the effect of the evidence, or if our review of the record convinces us that the district court made a mistake.” Patton, ¶ 18. If there are no clearly erroneous findings or incorrect conclusions of law, we next determine whether the district court abused its discretion. Patton, ¶ 19. “In a dissolution proceeding, the test for an abuse of discretion is whether the district court acted arbitrarily without employment of conscientious judgment or exceeded the bounds of reason resulting in a substantial injustice.” Patton, ¶ 19. DISCUSSION ¶14 1. Whether the District Court erred in finding the Agreement valid and enforceable. ¶15 Antenuptial agreements are premarital agreements subject to the Uniform Premarital Agreement Act, §§ 40-2-601 through 40-2-610, MCA. Pursuant to § 40-2-605(l)(a), MCA, “[pjarties to a premarital agreement may contract with respect to ... the rights and obligations of each of the parties in any of the property of either or both of them, whenever and wherever acquired or located.” A premarital agreement is enforceable unless the party against whom enforcement is sought proves that: (a) that party did not execute the agreement voluntarily; or (b) the agreement was unconscionable when it was executed and, before execution of the agreement, that party: (i) was not provided a fair and reasonable disclosure of the property or financial obligations of the other party; (ii) did not voluntarily and expressly waive, in writing, any right to disclosure of the property or financial obligations of the other party beyond the disclosure provided; and (iii) did not have or reasonably could not have had an adequate knowledge of the property or financial obligations of the other party. Section 40-2-608(1), MCA. Evidence of lack of capacity, duress, fraud, and undue influence is relevant to determining whether a premarital agreement is involuntary. In re Marriage of Shirilla, 2004 MT 28, ¶ 13, 319 Mont. 385, 89 P.3d 1 (citation omitted). ¶16 Evans contends that the Standing Master and the District Court erred in their factual findings regarding the validity of the Agreement. According to Evans, the Agreement is fraudulent. Although the Agreement is dated October 30,1996, Evans contends that he was not presented with the Agreement until minutes before his wedding on October 31,1996. Evans contends that the execution of the Agreement thus was unconscionable. Evans further contends that evidence presented at trial — phone records and markings on Bliss’ personal agenda — proves that the Agreement was not correctly dated. Evans contends that this evidence conclusively demonstrates that it would have been physically impossible for the parties to drive from Vaughn, where they resided, or Great Falls, where Bliss worked that day, to Conrad, where the Agreement was signed, and back on October 30, 1996. Evans also contends that the Agreement was fraudulent because Bliss’ cat-breeding and dog-grooming businesses were not included in her list of assets (Exhibit A) and Exhibit B does not accurately reflect his assets and liabilities at the time of the marriage. ¶17 “A trial court acting as a finder of fact is in the best position to observe the witnesses, including their demeanor and credibility.” In re Seizure of $23,691.00 in U.S. Currency, 273 Mont. 474, 485, 905 P.2d 148, 155 (1995) (citation omitted). We will not substitute our judgment for that of the lower court “regarding the credibility of witnesses and the weight of their testimony.” In re Seizure of $23,691.00 in U.S. Currency, 273 Mont. at 485, 905 P.2d at 155 (citation omitted). This is because “[t]he weight of the evidence and the credibility of the witnesses are exclusively the province of the trier of fact and, in the event of conflicting evidence, it is within the province of the trier of fact to determine which will prevail.” In re Seizure of $23,691.00 in U.S. Currency, 273 Mont. at 485, 905 P.2d at 155 (citation omitted). Evans’ testimony from the declaratory judgment hearing before the Standing Master reflects many of the same contentions he maintains on appeal. The Standing Master found Evans’ testimony overwhelmingly not credible, particularly in light of conflicting testimony from multiple witnesses. ¶18 Before adopting the Standing Master’s declaratory judgment, the District Court reviewed the transcript of the hearing before the Standing Master and held a separate hearing with the parties and their counsel. At the hearing before the Standing Master, Hicks testified that she notarized Bliss’ and Evans’ signatures on the Agreement on October 30,1996. Keil testified that he received a fax of Evans’ assets from Evans’ business fax number, which he used to prepare Exhibit B. Although Bliss’ cat-breeding and dog-grooming businesses were not listed under Bliss’ assets, Evans acknowledged that, when he signed the Agreement, he was aware of both businesses. ¶19 Evans also testified that he met with an attorney before signing the Agreement, though he maintained that he did not see a draft of the Agreement at that time. Evans testified that he had experience working for three different attorneys doing legal research, investigating, and drafting legal documents. Peggy Engel, a licensed notary, testified that she notarized Evans’ October 14, 2005 affidavit, in which Evans stated that he signed the Agreement “after careful consideration and of my own free will.” Evans admitted that he signed the affidavit but claimed he was under duress at the time because Bliss told him she would commit suicide if he did not sign it. Engel testified that she would not have notarized Evans’ affidavit if Evans appeared unwilling or under duress to sign it. ¶20 The record contains sufficient evidence to support the District Court’s finding that Evans voluntarily signed the Agreement. See § 40-2-608(1), MCA. Apart from Evans’ self-serving testimony, the record contains no evidence that the Agreement was fraudulent or that Evans lacked capacity, was under duress, or was subject to undue influence when he signed the agreement. See Shirilla, ¶ 13. Although Evans contends that he was not provided a fair disclosure of Bliss’ property because her list of assets did not include her dog-grooming or cat-breeding businesses, Evans does not dispute that he had knowledge of both businesses at the time he signed the Agreement. The District Court found that both businesses produced minimal profit when the parties were married, that Evans lived with Bliss when she was operating the cat-breeding business out of her home, and that Evans occasionally helped with small tasks involving Bliss’ pet-grooming business. Evans does not dispute these facts. Given Evans’ familiarity with both businesses, the fact that neither was listed under Bliss’ assets did not prevent Evans from being provided a fair and reasonable disclosure of Bliss’ property. See § 40-2-608(l)(b)(i), MCA. ¶21 The District Court applied the correct standards of review to the Standing Master’s declaratory judgment by reviewing the Standing Master’s findings of fact for clear error and its conclusions of law to determine whether they were correct. The District Court determined the credibility of witnesses and weighed the evidence before it. There is substantial evidence in the record to support the District Court’s adoption of the Standing Master’s findings. Therefore, the District Court’s factual findings regarding validity of the Agreement are not clearly erroneous. We further conclude that the District Court correctly applied the law to the facts. ¶22 2. Whether the District Court erred or abused its discretion in determining that more than 150 firearms belonged to Bliss. ¶23 The only specific distribution of property Evans appeals is the distribution of 186 firearms. Premarital agreements are contracts. See Deschamps v. Deschamps, 2009 MT 431, ¶¶ 14-15, 354 Mont. 94, 223 P.3d 324. Pursuant to § 28-3-201, MCA, “[a] contract must receive such an interpretation as will make it lawful, operative, definite, reasonable, and capable of being carried into effect if it can be done without violating the intention of the parties.” The contract’s language “shall govern its interpretation, provided that the language is clear and explicit” and there are no absurdities. Deschamps, ¶ 15. ¶24 The Agreement clearly states that “[a]ny property inherited or gifted to either party shall be owned as separate property by the inheriting party.” Regarding gifts between the parties, the Agreement provides: “Nothing in this agreement shall be construed as a waiver or renunciation by either party of any gift, bequest, or devise which may be made by the other party in addition to any benefit given to them by reason of this agreement.” Evans does not dispute that he gave all of his breech-loading firearms to Bliss before and during the parties’ marriage. Bliss was the sole owner of those firearms upon dissolution of the parties’ marriage. Therefore, under the clear and explicit language of the Agreement, the firearms belong to Bliss. ¶25 The District Court did not err in finding that all breech-loading firearms belong to Bliss. The District Court correctly applied the law to the facts. The court did not act arbitrarily without employment of conscientious judgment, and its distribution of the parties’ assets was just. CONCLUSION ¶26 We affirm the District Court’s March 27, 2013 order adopting the Standing Master’s declaratory judgment; its June 13, 2013 order denying Evans’ motion to alter or amend; and its June 4, 2015 order adopting the Standing Master’s findings of fact, conclusions of law, and decree of dissolution. The District Court did not err in finding the Agreement valid and enforceable. Nor did the District Court err or abuse its discretion in determining that more than 150 firearms belong to Bliss. CHIEF JUSTICE McGRATH, JUSTICES WHEAT, BAKER and RICE concur.
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CHIEF JUSTICE McGRATH delivered the Opinion of the Court. ¶1 Global Client Solutions appeals from the District Court’s order denying Global’s motion to dismiss and to compel arbitration. We affirm. ¶2 Global presents issues for review which we restate as follows: Issue 1: Whether the District Court erred in reserving to itself the determination of arbitrability. Issue 2: Whether the District Court erred in determining that the arbitration provision was unconscionable and therefore not enforceable against Ossello. BACKGROUND ¶3 In July 2012 Susan Ossello faced more than $40,000 in unsecured debt that she owed to Bank of America, Discover Bank and Citibank. She received an unsolicited mailing from an entity called World Law, advertising that it could provide her with debt relief services. The solicitation represented that World Law would furnish legal counsel concerning her debt issues; that it would negotiate with her creditors for a reduction of her debt; that it would prevent her from going into bankruptcy; and that under its plan she could be debt free in two to four years. Ossello called a phone number provided in the mailing and talked to a sales agent for World Law. ¶4 Ossello alleges that the agent represented that if she enrolled in the debt reduction program, World Law’s attorneys would represent her and contact her creditors to negotiate reduced settlements of her credit card debts. The agent also told Ossello that these attorneys would represent Ossello if she got sued by a creditor. The agent then sent several form agreements to Ossello by email. She and the agent reviewed the forms over the phone, including a Client Services Agreement on behalf of World Law and a Dedicated Account Agreement on behalf of Global Client Solutions. The agent explained to her how to sign the agreements by entering her name into a box on the computer screen. Ossello electronically signed the agreements. ¶5 Global’s Dedicated Account Agreement (DAA) established a non-interest-bearing account in an undisclosed bank, funded by an automatic monthly withdrawal of $589.29 from Ossello’s existing bank account. The agent represented, and Ossello believed, that Global would use the proceeds in the account to pay her debts as they were negotiated and reduced. In reliance upon the advice of the agent and in a belief that she would benefit from a debt reduction plan, Ossello stopped making payments on her credit card debt. A year later, in September 2013, Discover Bank brought a collection action against her in Montana District Court. ¶6 Ossello contacted World Law or Global about the Discover Bank action. They sent her a form answer denying the material allegations of Discover Bank’s complaint, and directed her to file it pro se. In November 2013 Ossello filed the form answer, which denied that she had ever applied for or received a credit card from Discover Bank; denied that she had any agreement with Discover Bank; and denied that she ever received monthly statements from Discover Bank. Ossello claims that World Law and Global knew that the representations in the answer were not based in fact, and that they never provided her with any material legal services. Ossello contends that World Law and Global never contacted her creditors to obtain any debt reduction for her and that “no payments were ever made to [her] creditors from the Dedicated Account.” ¶7 Ossello obtained an attorney and on June 18, 2014, filed an amended answer to Discover Bank’s complaint, and a third-party complaint against World Law and Global. The complaint alleges that World Law and Global used deceptive and fraudulent representations to solicit her participation in an illegal debt settlement plan. Ossello alleges that World Law and Global misrepresented to her that attorneys were providing her with legal services, and deceptively promised to significantly reduce her debt without ever actually doing so. The counts of the complaint allege claims for violation of the Montana Consumer Debt Management Services Act; violation of the Montana Consumer Protection Act; fraudulent misrepresentation and deceit; negligent misrepresentation; illegality, unconscionability and contract of adhesion; unjust enrichment; unauthorized practice of law; and civil conspiracy. ¶8 World Law failed to appear and defaulted in August 2014. Global, however, filed a motion to compel arbitration and to dismiss the third-party complaint for lack of jurisdiction. ¶9 The Global Dedicated Account Agreement that Ossello received on her computer and signed by email stated that Ossello had “approved certain transactions to be taken in [her] account application.” The DAA gave Global authority to disperse funds from the account based on directions from Ossello or based on instructions from the “Sponsor as defined in [her] account application.” The DAA gave Global the authority to act on the Sponsor’s instructions “without further confirmation” from Ossello. The DAA authorized Global to deduct monthly fees and service charges from Ossello’s money deposited into the account. Global could unilaterally increase those fees and charges “for any increase in the associated costs and expenses.” Global also had the authority to transfer Ossello’s account to another FDIC-insured institution, which was also not otherwise identified. ¶10 Attached to the DAA as Exhibit A was a single-page document entitled Dedicated Account Agreement and Application. That document provides that the “Dedicated Account” is to be administered at a bank selected by Global for the purpose of accumulating funds to “repay [Ossello’s] debts in connection with a debt settlement program ... sponsored by the organization identified below.” That document further provides that only the applicant “(or Authorized Contact, if any) may authorize deposits to and creditor payments from my Dedicated Account.” The “authorized contact” refers to the Sponsor, but the “World Law” entity is not listed in either document or identified as the “Sponsor.” The application form has a line for the “Sponsor’s” Global Account number but it is left blank, and in a box labeled “Sponsor” the term “Company Code” is listed. ¶11 The Global documents authorize “the Sponsor” to direct disbursement of funds from the account. However, nowhere is the Sponsor, the bank holding the account, or the account number identified. ¶12 The application also contains a schedule of fees and charges. That schedule lists an account maintenance fee of $9.45 and a wire deposit fee of $10.00 as the only monthly fees not related to “disbursement services.” Ossello’s complaint alleged that as of June 2014 Global had deducted $12,502.38 from her bank account and deposited the money into the account. She alleged at the time her third-party complaint was filed, that Global had taken $6567.90 from the account in fees but that she had received no debt relief or actual legal services. She also asserted that according to Global, the account then had a remaining balance of $5712.13. ¶13 The DAA also contained a lengthy arbitration clause. The clause requires arbitration of “any controversy, claim or dispute... arising out of or relating to” the Dedicated Account Agreement. The arbitration clause states that it applies to the “breach, termination, enforcement, interpretation or validity [of the Agreement], including the termination of the scope or applicability of this agreement to arbitrate.” It provides that the arbitration would take place either in Oklahoma under the laws of that state, or in the state in which the consumer resides under the laws of that state. It provides that the arbitration would be “administered by the American Arbitration Association (“AAA”) pursuant to its rules and procedures,” before an arbitrator selected by the AAA. It also provides for sharing costs of the arbitration, with the customer’s share being limited to $2000. It explains that binding arbitration means that both parties give up the right to trial by jury, the right to appeal from the ruling in most instances, and the right to conduct extensive discovery. ¶14 The arbitration clause further provides that if a party fails to engage in arbitration, unsuccessfully challenges the award, or fails to comply with the award, the other party is “entitled to costs of suit, including a reasonable attorney’s fee for having to compel arbitration or defend or enforce the award.” Thereby, Global would be entitled to claim from Ossello all its attorney fees in the current case, if it were to prevail. ¶15 Significantly, though the DAA arbitration clause broadly requires both parties to arbitrate “any controversy, claim or dispute ... relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof,” Global reserved to itself in a separate paragraph of the DAA the right to bring “collection actions” in court against Ossello .and require her to pay all costs and attorney fees related thereto. The DAA provides that if Ossello’s bank account had a “negative balance” at any time, and Ossello failed to pay “upon demand,” she was responsible for that deficit and “collection actions may be pursued against you. If any such collection action is undertaken, you agree to pay all court costs and collection fees, including reasonable attorney’s fees to the extent permitted by applicable law.” Therefore, if Ossello’s bank account could not cover Global’s periodic deductions for expenses, Global could sue her in a court of law to collect the deficit, along with its costs and attorney fees. ¶16 The District Court found that Ossello had directly challenged the arbitration clause in the Dedicated Account Agreement by specifically alleging in her third-party complaint that the Agreement was unconscionable and that it wrongfully waived her right to a jury trial. Therefore, the District Court concluded that it had jurisdiction to determine the validity of the arbitration clause. The District Court then determined that under Montana law, a challenged arbitration clause is treated “as a contract on equal footing with other contracts” and that unconscionability may be determined by inquiring whether the contract is one of adhesion and whether the contract unreasonably favors the drafter. ¶17 The District Court held, in part, that the arbitration clause in Global’s contract was unconscionable and therefore unenforceable. The analysis employed by the District Court considered first whether the contract was a contract of adhesion, and secondly whether the contract unreasonably favored the drafter (Global), citing Kelker v. Geneva-Roth Ventures, 2013 MT 62, ¶ 59, 369 Mont. 254, 303 P.3d 777. The District Court summarized the contentions of each side regarding the terms of the arbitration agreement and determined that it was unconscionable. The District Court cited the context in which the agreement was presented to Ossello (in a phone call by a person who provided assurances that “attorneys” were involved or would be involved to handle everything for her); the fact that the entire transaction with the sales person on the phone consumed only about 15 minutes; that Ossello was not told that she had the right to ask for a change in any provision of the agreement; and that she was not told and did not know that she was agreeing to abide by a form of dispute resolution that required her to forego the right to seek relief in court. ¶18 The District Court determined that the Dedicated Account Agreement was a contract of adhesion because it was drafted by the stronger party and Ossello had only the choice of accepting it or rejecting it without specific negotiation. The District Court concluded that the arbitration clause was unconscionable and not enforceable, and it therefore denied Global’s motion to dismiss and motion to compel arbitration. Global appeals. STANDARD OF REVIEW ¶19 This Court reviews a district court’s decision on a motion to dismiss, de novo. Estate of Big Spring, 2011 MT 109, ¶ 20, 360 Mont. 370, 255 P.3d 121. This Court also reviews de novo a district court’s order concerning a motion to compel arbitration. Kelker, ¶ 9. A motion to dismiss is considered in a light most favorable to the non-moving party and the factual allegations of the non-moving party are taken as true. Kortum-Managhan v. Herbergers, 2009 MT 79, ¶ 12, 349 Mont. 475, 204 P.3d 693. DISCUSSION ¶20 This case involves the intersection of federal and state laws concerning arbitration. The Federal Arbitration Act governs arbitration issues arising from transactions in interstate commerce. Iwen v. U.S. West Direct, 1999 MT 63, ¶ 23, 293 Mont. 512, 977 P.2d 989. The FAA was enacted in 1925 to quell “widespread judicial hostility to arbitration agreements.” A T & T Mobility v. Concepcion, 563 U.S. 333, 339, 131 S. Ct. 1740, 1745 (2011). A primary purpose of the FAA is to ensure that arbitration agreements exist upon the “equal footing” as all other contractual provisions. Buckeye Check Cashing v. Cardegna, 546 U.S. 440, 443, 126 S. Ct. 1204, 1207 (2006). Under the FAA: A written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction or refusal, shall be valid, irrevocable and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract. 9 U.S.C. § 2. The final clause of the statute is often referred to as the “savings clause,” the effect of which is that the FAA “does not require the enforcement of arbitration agreements” that would be subject to “generally applicable [state law] contract defenses such as fraud, duress, or unconscionability.” Mortensen v. Bresnan, 722 F.3d 1151, 1158 (9th Cir. 2013). However, an arbitration agreement cannot be invalidated by state law defenses that “apply only to arbitration or that derive their meaning from the fact that an agreement to arbitrate is at issue.” Concepcion, 563 U.S. at 339, 131 S. Ct. at 1746. ¶21 Montana law favors arbitration and the State has adopted the Uniform Arbitration Act, Title 27, chapter 5, MCA. Under Montana law, when parties agree to arbitrate disputes, a district court upon application must order them to proceed to arbitration. Section 27-5-115, MCA. There is a presumption of arbitrability and doubts should be resolved in favor of arbitration. Kalispell Education Assoc. v. Bd. of Trustees, 2011 MT 154, ¶ 18, 361 Mont. 115, 255 P.3d 199. ¶22 The prevailing rule is that whether a particular dispute is subject to arbitration is a threshold issue to be decided by the courts unless the parties explicitly agree to assign that issue itself to arbitration. Bridge Fund Capital v. Fastbucks, 622 F.3d 996, 1000 (9th Cir. 2010). Where a party specifically challenges the validity of the arbitration clause, and not just the entire contract that contains it, then it is the court that determines the validity of the arbitration clause. Buckeye, 546 U.S. at 444, 126 S. Ct. at 2775. ¶23 The initial inquiry when any court is asked to compel arbitration is whether the parties have agreed to arbitrate. Kalispell Education Assoc., ¶ 11. It is a “fundamental principle that arbitration is a matter of contract.” Concepcion, 563 U.S. at 339, 131 S. Ct. at 1746, (citing Rent-A-Center v. Jackson, 561 U.S. 63, 130 S. Ct. 2772 (2010)). An enforceable agreement to arbitrate must therefore have the same elements as any contract: namely, identifiable parties with the capacity to contract; the consent of the parties; a lawful object; and consideration. Section 28-2-102, MCA; Thornton v. Songstad, 263 Mont. 390, 394, 868 P.2d 633, 635 (1994). The consent of the parties requires that there be “mutual assent or a meeting of the minds on all essential terms to form a binding contract.” Keesun Partners v. Ferdig Oil Co., 249 Mont. 331, 337, 816 P.2d 417, 421 (1991). ¶24 With these general principles of arbitration and contract law as a backdrop, we now turn to the issues before the Court. ¶25 Issue 1: Whether the District Court erred in reserving to itself the determination of arbitrability. ¶26 Global raises several arguments in support of its contention that the District Court did not have the authority to determine whether the present dispute was arbitrable. First, Global maintains that Ossello’s claims must go directly to arbitration because she did not specifically challenge the validity of the arbitration clause as required by Buckeye. However, Global also concedes that Ossello challenged the arbitration clause in response to Global’s motion to compel arbitration. This was sufficient to meet Ossello’s obligation to challenge the arbitration clause. Bridge Fund Capital, 622 F.3d at 999. ¶27 Second, Global argues that its arbitration provision contains a “delegation term” that requires an arbitrator and not a court to decide any threshold issues of arbitrability. We begin with the fundamental principle under the FAA that it is the responsibility of the court and not the arbitrator to determine the threshold issue of arbitrability — i.e., the validity of a challenged arbitration clause. Kelker, ¶ 12; Buckeye, 546 U.S. at 444, 126 S. Ct. at 2775. However, the parties to an agreement to arbitrate may agree to a “delegation provision” that assigns to the arbitrator the determination of the initial issues of arbitrability. Rent-A-Center, 561 U.S. at 68, 130 S. Ct. at 2777. The Supreme Court has held that the terms of an enforceable delegation provision must be “clear and unmistakable” on the face of the arbitration agreement. First Options v. Kaplan, 514 U.S. 938, 944, 115 S. Ct. 1920, 1924 (1995). “Courts should not assume that the parties agreed to arbitrate arbitrability unless there is ‘clea[r] and unmistakable] evidence that they did so ” Rent-A-Center, 561 U.S. at 68-69, 130 S. Ct. at 2778. ¶28 Global contends that the following language in its arbitration clause constitutes a delegation provision that must be enforced: In the event of any controversy, claim or dispute between the parties arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation, or validity thereof, including the termination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration. ... (Emphasis added.) Global maintains that this provision evidences Ossello’s agreement to arbitrate arbitrability, preempting the rule of Buckeye and Kelker that enforceability of an arbitration provision is for a court to decide. We disagree. ¶29 There is no “clear and unmistakable” agreement in Global’s language or elsewhere in the facts of this case to arbitrate questions of arbitrability. It is black-letter law that contract language should be interpreted most strongly against the party responsible for the language. Section 28-3-206, MCA; West v. Club at Spanish Peaks, 2008 MT 183, ¶ 53, 343 Mont. 434, 186 P.3d 1228. The fact that Global felt compelled to argue in its brief that the word “termination” in its delegation clause should actually be read as “determination” underscores the lack of clarity in this provision. As written, the language is ambiguous and confusing. It does not clearly delegate to the arbitrator the determination of the scope or applicability of the agreement to arbitrate; rather it delegates to the arbitrator the “termination of the scope or applicability of this agreement to arbitrate.” This language, written by Global, makes no sense and we are unable to plainly construe its meaning. The purported delegation provision here therefore falls far short of the required clear and unmistakable standard adopted by the United States Supreme Court. This provision therefore cannot displace the prevailing rule that the validity of the arbitration clause is to be determined by the court. The District Court properly proceeded to determine the enforceability of the arbitration provision. ¶30 Global further argues that Ossello should be precluded from now contesting the enforceability of the delegation clause because she failed to contest it in the District Court. However, at the time that Ossello filed her brief in the District Court in opposition to Global’s motion to compel arbitration, Global had not raised any argument with respect to a delegation provision. To the contrary, Global argued strenuously that the District Court should consider the arbitration requirement on its merits and order Ossello into arbitration. In other words, Global initially argued its position as if there were no delegation provision at issue in the case. It was only after Ossello filed her brief in opposition to Global’s motion to compel arbitration that Global raised the delegation clause argument upon which it now relies. Under these circumstances^ we will not conclude that Ossello waived her right to oppose the delegation clause. ¶31 Global next argues that reference in the arbitration clause to the “American Arbitration Association” constitutes a delegation provision. The arbitration clause in the DAA provides that the arbitration be “administered by the American Arbitration Association (“AAA”) pursuant to its rules and procedures.....” (Emphasis added.) Administration of the conduct of arbitration proceedings pursuant to AAA rules suggests implementation of procedural and logistical rules; it declares nothing concerning delegation. There is no language in the arbitration clause that imposes a clearly-defined and unmistakable agreement to supplant the general rule that courts determine arbitrability. ¶32 Global alternatively argues that it is the “general rule” that incorporation of the AAA rules into an arbitration clause constitutes an agreement to arbitrate arbitrability. We cannot agree. The cases cited by Global almost exclusively involve arbitration disputes between sophisticated parties in commercial settings, not dealings between a debt relief organization and a debt-ridden consumer. See, e.g., Oracle America v. Myriad Group, 724 F.3d 1069 (9th Cir. 2013) (dispute between two computer software companies, in which the Court applied the “general rule” on AAA incorporation but “express[ed] no view as to the effect of incorporating arbitration rules into consumer contracts.”). In the present case, the AAA rules are not part of the record and neither the DAA nor Global’s arguments specify which of the multiple sets of commercial or consumer AAA rules are supposedly incorporated here. We cannot therefore conclude that Global’s mere reference to administering an arbitration pursuant to AAA rules constitutes a substantive agreement with Ossello to forego the general rule that arbitrability is to be decided by the court. ¶33 For the foregoing reasons, we reject Global’s argument that the District Court erred in reserving to itself the determination of whether the DAA was subject to arbitration. We next turn to the merits of the enforceability of the arbitration clause against Ossello. ¶34 Issue 2: Whether the District Court erred in determining that the arbitration provision was unconscionable and therefore not enforceable against Ossello. ¶35 For the reasons set forth below, we conclude that Global’s purported right to compel Ossello to arbitrate fails for the fundamental reason that it is unconscionable under Montana contract law. Under Montana law, a contract provision can be unconscionable and therefore unenforceable if “when considered in its context, [it] is unduly oppressive, unconscionable or against public policy.” Iwen, ¶ 27. Unconscionability in Montana contract law is a concept adapted from the Uniform Commercial Code, and requires a determination that the contractual term is unreasonably favorable to the drafter, and there is no meaningful choice on the part of the other party but to accept the provision. Iwen, ¶ 32 (citing Leibrand v. National Farmers Union, 272 Mont. 1, 898 P.2d 1220 (1995)). ¶36 In Iwen, we addressed whether an arbitration clause contained in a contract for telephone book advertising was binding upon an attorney customer who filed a complaint against U.S. West for damages because his paid advertisement was incomplete and his telephone number and address were missing. Iwen, ¶ 7. The arbitration provision obligated the parties to arbitrate “any controversy or claim arising out of or relating to this agreement, or breach thereof,” but provided that any action by the publisher (U.S. West) for the collection of amounts due under the agreement was exempted from the arbitration obligation. This Court found the arbitration clause unreasonably favorable to the drafter because it required the customer to arbitrate all controversies, but allowed the company to sue in a court of law to collect amounts due under the contract from the consumer. Iwen, ¶ 31. We concluded the arbitration provision lacked mutuality of obligation, was one-sided, and contained terms unreasonably favorable to the drafter. We said: Certainly, this does not mean arbitration agreements must contain mutual promises that give the parties identical rights and obligations, or that the parties must be bound in the exact same manner. This simply restates the rule of law that disparities in the rights of the contracting parties must not be so one-sided and unreasonably favorable to the drafter ... that the agreement becomes unconscionable and oppressive. Iwen, ¶ 32. ¶37 The arbitration provision at issue in this case similarly obligates both parties to arbitrate any controversy or dispute arising out of the DAA, including matters with respect to breach or enforcement of the agreement. See Opinion, ¶ 13. However, a separate provision in the DAA provides that if Ossello’s account has a negative balance at any time, “collection actions may be pursued against you. If any such collection action is undertaken, you agree to pay all court costs and collection fees, including reasonable attorneys fees, to the extent permitted by applicable law.” Thus, as in Iwen, Ossello is obligated to arbitrate all controversies arising from the breach of the DAA, but if Ossello breaches the agreement, Global has the right to sue her in a court of law and to recover damages plus court costs, collection fees, and attorney fees. As we further observed in ¶ 31 of Iwen, as a practical matter, the only reason that U.S. West would seek a remedy against Iwen would be for an unpaid bill, and for that purpose it had free reign to seek a remedy before a court of law, while Iwen would be forced to seek any and all remedies against U.S. West in arbitration. The same is true here. Global is entitled to sue Ossello in a court of law for breach of the agreement, but she cannot sue it for breach of the agreement. In sum, the obligation to arbitrate is one-sided, not mutual. ¶38 We are mindful that Iwen pre-dates Concepcion ecudMortensen. In Concepcion, the Supreme Court concluded that a California state law rule that deemed unconscionable class-action waivers in consumer contracts of adhesion was preempted by the FAA because it “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Concepcion, 563 U.S. at 352, 131 S. Ct. at 1753 (internal citations omitted). In Mortensen, the Ninth Circuit interpreted Concepcion to mean that “[a]ny general state-law contract defense, based in unconscionability or otherwise, that has a disproportionate effect on arbitration is displaced by the FAA.” Mortensen, 722 F.3d at 1159. Based upon Concepcion and Mortensen, Global maintains here that any generally applicable state rule that stands as an obstacle to the objectives of the FAA is preempted by the Act. We do not agree with this broad statement. ¶39 Notably, several state and federal courts since Concepcion have concluded that lack of mutuality of obligation in an arbitration clause remains an appropriate basis for considering the enforceability of an arbitration clause. See Figueroa v. THI of N.M. at Casa Arena Blanca, LLC, 306 P.3d 480 (N.M. App. 2013) (holding that notwithstanding the pronouncements in Concepcion, an arbitration agreement in which the drafter unreasonably reserved to itself the claims it would most likely bring for the courts while subjecting the weaker party to arbitration of all claims, was unenforceable) (cert. denied by THI of New Mexico at Casa Arena Blanca, LLC v. Figueroa, 133 S. Ct. 2736 (2013)); Brewer v. Mo. Title Loans, 364 S.W.3d 486 (Mo. 2012) (concluding inter alia that Concepcion does not bar a finding that an arbitration clause is unenforceable where a title company reserves its right to obtain its primary remedies through the court system, but requires the party with lesser bargaining power to obtain her only meaningful remedy through individual arbitration) (cert. denied by Mo. Title Loans, Inc. v. Brewer, 133 S. Ct. 191 (2012)); Noohi v. Toll Bros., 708 F.3d 599 (4th Cir. 2013) (affirming district court ruling that an arbitration provision was unenforceable for lack mutuality of consideration because it bound only the purchaser to arbitration) (cert. dismissed by Toll Bros. v. Noohi, 134 S. Ct. 48 (2013)); Lou v. MA Labs., Inc., 2013 U.S. Dist. LEXIS 70665 (N.D. Cal. 2013) (concluding that the lack of mutuality in an arbitration provision renders the clause unconscionable and therefore unenforceable). The fact that the United States Supreme Court has denied certiorari in three of the foregoing cases illustrates that Concepcion has not wholly preempted an unconscionability defense premised upon a lack of mutuality of obligation in actions in which an arbitration clause is challenged. ¶40 As noted, the District Court found inter alia that the arbitration clause in Global’s contract was unconscionable because it unfairly favored the drafter. We agree. This is the same conclusion underpinning our analysis in Iwen. We conclude that the District Court’s finding of unfavorable treatment and unconscionability was correct because the arbitration clause lacked mutuality. As was the case in Iwen, Global retained in the DAA important rights not provided to Ossello. Global had the right to sue Ossello in a court of law at any time the Dedicated Account lacked funds to cover Global’s payment demands or withdrawals. Because virtually the only breach of contract with which Global would be concerned would be lack of payment, Global reserved to itself the right to litigate its primary claim while requiring Ossello to arbitrate any and all claims she might have under the DAA. This arbitration provision unreasonably favors Global to the detriment of Ossello and is therefore unconscionable and unenforceable. ¶41 Concepcion and Mortensen cautioned against courts invoking state law defenses to upend an otherwise valid arbitration clause. That is not what has occurred here. This arbitration clause is invalid not due to a disproportionate application of state law, but rather because Global — like the drafters in the cases noted above — chose to compel arbitration for Ossello while reserving to itself the right to pursue its remedies in a court of law. Such one-sided arbitration clauses do not serve the objectives of the FAA. CONCLUSION ¶42 For the foregoing reasons, we conclude that the District Court did not err in reserving to itself the determination of arbitrability, nor did it err in declaring that the arbitration provision is unconscionable and therefore not enforceable against Ossello. ¶43 Affirmed. JUSTICES COTTER, WHEAT, SHEA and BAKER concur. This is an appeal from the denial of a motion to dismiss, so there is no factual record in this case. The facts in this Opinion are taken primarily from the allegations of Ossello’s complaint and the contents of Global’s Dedicated Account Agreement, attached to Global’s motion to dismiss. Ossello’s third-party complaint alleges that Global and World Law acted in concert and are jointly and severally liable for her claims. Global concedes that Ossello properly raised a challenge to the validity of the arbitration clause. The arbitration clause in the Dedicated Account Agreement provides that the validity and enforceability of the Agreement and issues of arbitrability may be decided under the law of the consumer’s state of residence. In its brief, Global inserts the prefix “de” in front of the italicized “termination” in this language, contending that “determination” was the term intended. There is no “de” in the original language and we decline to allow Global to alter the language that it drafted to suit its purposes on appeal. Iwen also considered, alternatively, whether the disputed contract provision was within the reasonable expectations of the party attacking it. Iwen, ¶ 27. We expressly decide the present case without consideration of Ossello’s reasonable expectations as to the DAA with Global. See Mortensen. Global concedes that the DAA is a contract of adhesion, although preferring to refer to it as a “standard form contract.” Global contends that the law, evidently the FAA, is intended to protect contracts of adhesion because they are now common and essential to business. Montana law will not find an arbitration clause or any other provision unenforceable simply because it is in a contract of adhesion. Day v. CTA, Inc., 2014 MT 119, ¶ 11, 375 Mont. 79, 324 P.3d 1205 (upholding an arbitration clause in a contract between a property owner and an architectural engineering firm).
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 In March 2015, the Eleventh Judicial District Court, Flathead County, issued its Findings of Fact, Conclusions of Law, Orders on Contempt and Decree of Dissolution, dissolving the marriage of the parties, dividing property, and imposing orders of maintenance and child support. Herbert Paschen (hereinafter Herb) appeals the order claiming the District Court’s distribution of the marital estate and its award of maintenance and child support were inequitable and were not supported by substantial evidence. We affirm in part and reverse and remand in part. FACTUAL AND PROCEDURAL BACKGROUND ¶2 Herb Paschen and Anne Kemsley (hereinafter Anne) were married in November 1996. They had three children between 1997 and 2003 and Anne remained at home with the children rather than working outside of the home. Beginning in 1998, Herb worked in sales and finance with various financial employers in California where the couple resided. In 2005, he became an officer and mortgage consultant with a national bank in Jackson Hole, Wyoming, earning approximately $100,000 annually. In 2007, however, he lost his banking job and established Fox Creek Holding, L.L.C., a land development corporation, with one of his banking clients. Herb and his partner each initially invested between $150,000 and $200,000 into the company, and obtained a loan for $3.2 million, personally guaranteed by Herb and his partner. In July 2008, Herb’s partner died in a helicopter crash. Herb attempted to keep the corporation viable but the company subsequently failed in 2010. The lending bank foreclosed on the unpaid note and obtained a judgment of $5.4 million against Herb and his business partner’s estate. Herb stipulated to a judgment against him in the amount of $5.4 million. ¶3 Between 2007 and 2010, while establishing and operating Fox Creek, Herb claimed he generated no income to support his family. Herb’s mother, Leslie Douglass (hereinafter Bunny), gifted the family $75,000 for each of those years. Herb accrued approximately $250,000 in legal fees during these years, some of which were incurred in the corporate lawsuit, and Bunny paid these fees in their entirety. ¶4 Anne did not actively participate in the family’s finances and testified that she believed the money from Bunny was the only money the family had at its disposal between 2007 and 2010. Undisputed evidence presented at trial, however, revealed that in 2007 Herb wrote checks for over $400,000, including a check to himself for $191,000, the purpose of which he could not recall at trial. Similarly, Herb spent considerable amounts beyond the gifted $75,000 during 2008 and 2009. The District Court calculated that between 2007 and 2010, Herb spent approximately $1,724,000.00, or an average of $431,000/year. Herb could not account at trial for the source of most of this money. ¶5 In July 2011, Anne initiated two legal proceedings against Herb in Wyoming — one for marital dissolution and the other for a restraining order following a physical altercation. During this time, Anne and two of the children remained in the Wyoming home and Herb and the couple’s oldest son moved to California. Herb testified to the Wyoming court that he was able to earn $100,000/year. The court adopted this figure, and in September 2011, ordered Herb to pay $2,713.81/month in child support and temporary support to Anne. Herb did not challenge this ruling. However, in August 2012, the Wyoming court dismissed the dissolution proceedings by stipulation of the parties. Herb had not paid any of the court-ordered support as of the time of dismissal. ¶6 Subsequently, Anne and two of the children moved to Montana and Herb and the eldest son joined them in an attempted reconciliation. The reconciliation failed within weeks and Herb moved to Oregon in the fall of 2012. The three children remained with Anne. After Herb and Anne separated, Bunny stopped gifting the family $75,000 but began giving Herb approximately $30,000/year for his living expenses. ¶7 Herb filed for divorce in the Eleventh Judicial District Court, Flathead County, Montana, on December 27,2012. In September 2013, Bunny paid Herb’s delinquent support obligation arising from the Wyoming order of support. In October 2013, the District Court conducted a two-day bench trial at which both Herb and Anne testified, as did the Director of Family Court Services for the District Court, a psychologist who performed a parenting evaluation in the matter, and a former friend and neighbor of the couple. ¶8 On March 31, 2015, the District Court issued its order dissolving the marriage. The order describes both marital assets valued at $95,966, and distributed marital assets valued at $104,466. The $95,966 value of the marital assets consisted of a checking account, 2 horses, a horse trailer, 2 vehicles, a piano and miscellaneous furniture, silver, china, and kitchenware. The most valuable item included in marital assets was $50,000 for missing jewelry belonging to Anne. The court found that at the time of separation Herb removed the jewelry from a safe to which he alone had access; therefore, the court ordered Herb to return the jewelry or to pay Anne the $50,000 attributed value. The court also declared that the jewelry was Anne’s “sole and separate property,” which would not be considered a marital asset subject to distribution. The court did not include the value of this jewelry in the distribution of marital assets. ¶9 The court distributed all the marital assets with the exception of the $50,000 in jewelry. The court also attributed $25,000 — not included in marital assets — to Herb representing the value of guns Herb had taken upon separation. It attributed $15,500 — also not included in marital assets — to Anne representing the value of a tractor and other items sold by Anne post-separation. The District Court noted that none of the property distributed to the parties constituted income-producing or income-generating property. ¶10 The court also allocated marital debt between the parties. Anne was assigned $16,058 of family debt. Herb was assigned $5,580,625 of debt, which included $5,420,608 for the judgment associated with the Fox Creek Holding corporate failure and $160,017 for other marital debts. The court expressly acknowledged the “grossly disproportionate allocation” but justified it based upon Herb’s claim that he intended to seek bankruptcy which would allow him to avoid most or all of the debt. ¶11 Lastly, the District Court addressed the proposed parenting plan, child support and maintenance. The court imputed an annual earning capacity to Herb of $175,000-$100,000 based upon Herb’s self-represented earning ability and $75,000 based upon past gifts from his mother. Using this imputed earning capacity, the court ordered Herb to pay $3,247.00/month in child support and $3,753.00/month as maintenance to Anne — both to be paid until January 2022. Other facts and arguments are further addressed below. ¶12 Herb appeals. Bunny, through counsel, has filed an amicus brief with respect to the propriety of including gifted property as income for purposes of calculating child support and maintenance. ISSUES ¶13 A restatement of the issues on appeal is: ¶14 Did the District Court err in the amount of income it imputed to Herb for the purpose of setting monthly child support and maintenance payments? ¶15 Did the District Court err and/or abuse its discretion in apportioning the marital estate? STANDARD OF REVIEW ¶16 The distribution of marital property in a dissolution proceeding is governed by § 40-4-202, MCA, under which a trial court is vested with broad discretion to distribute the marital property in a manner that is equitable to both parties. When dividing marital property, the trial court must reach an equitable distribution, not necessarily an equal distribution. The district court’s apportionment of the marital estate will stand unless there has been a clear abuse of discretion as manifested by a substantially inequitable division of the marital assets resulting in substantial injustice. Richards v. Trusler, 2015 MT 314, ¶ 11, 381 Mont. 357, 360 P.3d 1126 (internal citations omitted). ¶17 We review a district court’s findings of fact regarding division of marital property, child support, and maintenance awards to ascertain whether they are clearly erroneous. We apply a three-part test to determine if a finding is clearly erroneous. 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. 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 [C]ourt with the definite and firm conviction that a mistake has been committed.” Richards, ¶ 12. (Internal citations omitted.) DISCUSSION ¶18 Did the District Court err in the amount of income it imputed to Herb for the purpose of setting monthly child support and maintenance payments? ¶19 The District Court imputed an annual earning capacity to Herb of $100,000 based in part upon Herb’s 2011 testimony in the Wyoming court and that court’s imputation of potential income to him of $100,000. Additionally, noting that Herb’s mother had gifted the family $75,000/year in the past, the District Court included $75,000 in addition to the imputed $100,000 in its calculation of annual resources available to Herb. Based upon this annual figure of $175,000, the District Court ordered Herb to pay monthly child support of $3,247.00 and maintenance of $3,753.00. ¶20 Herb argues that the District Court erred in both the $100,000 imputation of earning capacity and the inclusion of his mother’s past charitable gifts to the family as “resources available” to pay child support and maintenance. Anne counters that sufficient evidence was presented to support the District Court’s ruling and it should not be disturbed. We address each of these imputed income resources below. Imputation of $100,000 annual earning capacity ¶21 Under the Montana dissolution of marriage statutes, a district court can order a party to a dissolution proceeding to pay maintenance to the other party and to pay child support. Section 40-4-203(2), MCA, requires the court to consider the financial resources of the party seeking maintenance as well as the “ability of the spouse from whom maintenance is sought” to meet his or her own needs and the maintenance request of the other party. With respect to child support, § 40-4-204, MCA, obligates the court to consider, among other things, the financial resources of the child and the parents, as well as the child’s standard of living had the parents not gotten divorced. ¶22 The Administrative Rules of Montana instruct what “income” can be considered for purposes of determining child support. Admin. R. M. 37.62.105(1) states: “Income for child support includes actual income, imputed income as set forth in ARM 37.62.106, or any combination thereof which fairly reflects a parent’s resources available for child support.” “Imputed income” means “income not actually earned by a parent, but which is attributed to the parent” based on: (a) the parent’s recent work history; (b) occupational and professional qualifications; and (c) existing job opportunities and associated earning levels in the community. Admin. R. M. 37.62.106(1) and (3)(a)-(c). Additionally, income should be imputed whenever a parent is unemployed or underemployed, fails to produce sufficient proof of income or has an unknown employment status. Admin. R. M. 37.62.106(2)(a)-(d). ¶23 Herb asserts that his “recent work history” clearly establishes that he has not been able to earn $100,000/year since before 2007 and that his income prospects from his current employment are $50,000 to $60,000, which is substantially lower than $100,000. He claims this alone is sufficient to establish that the District Court abused its discretion in imputing a $100,000 earning capacity to him. ¶24 Anne counters that Herb’s extensive professional work history establishes his ability to command a significant salary but that Herb chooses to be voluntarily and vindictively underemployed. She points to Herb’s resume claims that he created a $65 million portfolio in commercial loans “from his basement” for the national bank which once employed him and his experience of rising from a mortgage broker to a bank vice president as examples of his ability to obtain high-paying professional employment. Anne further maintains that Herb enjoys generous access to his mother’s significant wealth or has considerable hidden personal wealth as evidenced by produced financial records. Consequently, she urged the District Court to impute to Herb an income of $410,000/annually. ¶25 The District Court was presented with concrete evidence of Herb’s ability to earn approximately $100,000 annually. Herb’s trial exhibits reflect adjusted gross income earnings between 2001 and 2006 ranging from $46,830 to $93,366. In 2009, Herb sued the widow of his deceased Fox Creek business partner in Idaho, and claimed in the complaint that his “time [with Fox Creek] was worth $100,000” annually. Additionally, in the Wyoming court’s September 2011 Order Requiring Child Support and Temporary Support, the court stated “[Herb] anticipates earning an annual gross income of $100,000.” Based upon this evidence, the Wyoming court ordered Herb to pay $2,713.81/month in child support and Herb did not challenge this ruling. ¶26 We conclude the District Court did not err in imputing $100,000 income to Herb, in part premised upon his own assertions of his likely earning power. Anderson v. Anderson, 2014 MT 111, ¶ 15, 374 Mont. 526, 323 P.3d 895. Between 1998 and 2007, he was (1) a residential loan officer for a mortgage company, (2) an account executive for a finance group, and (3) a commercial lender for a national bank. His self-proclaimed successes at those jobs demonstrate a high earning capability. We acknowledge that his annual income dropped significantly following the unfortunate experience with Fox Creek Holding, during which he deferred income for several years. Additionally, we note that subsequent to the demise of Fox Creek, Herb held low-paying temporary jobs. We need not determine whether he chose to be underemployed as argued by Anne or was unable to find a position commensurate with his previous employment. Herb now enjoys a professional sales position in which he expects to earn between $50,000-$60,000 in commissions during his first year. He testified that he expects even greater commission income in his second and subsequent years. Thus, based upon Herb’s work history, professional qualifications, and existing job opportunities, it was not clearly erroneous for the court to conclude that Herb will reach his imputed income. Admin. R. M. 37.62.106(1) and (3)(a)-(c). We therefore affirm the District Court’s imputation of $100,000 annual income to Herb. Imputation of $75,000 ¶27 Whether gifts of cash should constitute income for purposes of calculating child support is a question of first impression for the Court. We therefore look to the language of our statutes and regulations and to other states for guidance. Herb and his mother in her amicus brief argue that the District Court erred in imputing $75,000/year to his income based upon Bunny’s past charitable gifts to the family. Anne asserts that Herb produced no evidence that the considerable financial resources he utilized over the past several years were actually gifts from his mother, but if they were she argues that the administrative rules require the court to consider “economic benefit from whatever sources derived,” including gifts. ¶28 In her amicus brief, Bunny traces the previous administrative rule, Admin. R. M. 46.30.1513, back to 1990 when the Department of Social and Rehabilitation Services (DSRS) governed the Montana child support guidelines. At that time, the rule required courts to consider a parent’s net resources available for child support, including both “gross income” and “imputed income.” “Gross income” expressly included “gifts and prizes.” Admin. R. M. 46.30.1513(1)(a) and (b)(1990). In 1992, after proposed amendments were adopted, Admin. R. M. 46.30.1513 continued to address “imputed income,” while newly-adopted Admin. R. M. 46.30.1508 (1992) addressed the determination of “gross income.” “Gifts and prizes” were no longer included as examples of “gross” or “imputed” income in the new rules. ¶29 In 1995, the Department of Public Health and Human Services (DPHHS) assumed authority over the child support guidelines and the applicable rules were moved from Title 46 to Title 37. In 1998, DPHHS adopted substantial revisions to the child support guidelines. The agency replaced reference to “gross income” with the term “actual income,” which included, among other things, “economic benefit from whatever source derived.” Admin. R. M. 37.62.106 (1998). Multiple forms of income such as wages, tips, commissions, bonuses, etc., were provided as examples but again the rule addressing “actual income” did not include gifts, prizes, or inheritances. In the comments issued during the rule changing process, the agency stated it was revising Admin. R. M. 37.62.106 “to provide a single reference point to determine if a source of funds or ability to obtain funds should be counted as income, real or imputed, in order to appropriately determine each parent’s child support obligation.” 1998 Mont. Admin. Register 334. ¶30 The regulations remained unchanged until 2012. At that time, DPHHS adopted Admin. R. M. 37.62.105 to address the determination of “actual income” for child support purposes. Admin. R. M. 37.62.106 remained dedicated to the determination of imputed income for child support purposes. Again, the agency chose to exclude gifts, prizes, and inheritances as a source of income for purposes of calculating child support. ¶31 In addition to their reliance on the administrative rules, Herb and Bunny further argue that in determining child support obligations, the applicable statutes require courts to look to the resources of the parents and not to the resources of other relatives or persons who are part of the parent’s household. ¶32 It is clear from the former and current statutes and regulations addressing the determination of income for purposes of calculating child support that the regulatory agency chose to remove express reference to “gifts” from the inclusion in actual or imputed income. Furthermore, while the Legislature has amended the governing statute, § 40-4-204, MCA, more than a dozen times since its enactment in 1975, it has chosen not to expressly define what constitutes a parent’s “financial resources.” Rather, it directs a court issuing a child support order to “determine the child support obligation by applying the standards in this section and the uniform child support guidelines” adopted by DPHHS. Section 40-4-204, MCA, instructs the courts that the “guidelines must be used in all cases.” Given the number of revisions to both the applicable statute and regulations, DPHHS and the Legislature had every opportunity to expressly include “gifts” as income had that been the intention. Neither did so. ¶33 Section 1-2-101, MCA, states that “In the construction of a statute, the office of the judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted.” We therefore decline to reinsert “gifts” into the legislative or regulatory provisions setting forth the sources to be considered in calculating child support. ¶34 We also find case law from other jurisdictions persuasive on this point. Statutes and regulations in some states do include gifts as resources available for child support computations. See O.C.G.A. § 19-6-15(f)(1)(A) (xviii) and Tenn. Comp. R. & Regs. R. 1240-2-4-.04(3)(a)1(xviii). See also Ind. Child Support R. & Guidelines 3(A)(1) (Weekly gross income includes gifts.) and Va. Code Ann. § 20-108.2.C (Gross income includes gifts.). In other states with statutes that do not expressly require gifts to be considered as income for child support purposes, courts have exercised their discretion and interpreted their statutes broadly to allow consideration of gifts. In In re Marriage of Alter, 171 Cal. App. 4th 718 (2009), the California Appeals Court acknowledged that Cal. Fam. Code § 4058 defining gross income of each parent did not “mention gifts at all,” but required courts to consider “income from whatever source derived.” There, the court concluded that monthly cash gifts of $6,000 from the father’s mother over more than a decade constituted “gifts that bear a reasonable relationship to the traditional concept of income as a recurrent, monetary benefit.” Alter, 171 Cal. App. 4th at 736-37. See also Petersen v. Petersen, 22 S.W.3d 760 (Mo. Ct. App. 2000), in which the court imputed gift income to Mother based upon her parent’s annual gift of $20,000 during the marriage. ¶35 Conversely, other courts have declined to consider gifts as income. In Nass v. Seaton, 904 P.2d 412 (Alaska 1995), father appealed the Superior Court’s inclusion in his income of monetary gifts from his parents. Nass received $20,000 annually from his parents from 1990 through 1992, with the expectation he would receive another $20,000 in 1993. The Superior Court calculated Nass’s child support obligation based, in part, upon these gifts. Nass, 904 P.2d at 414. The Alaska Supreme Court reversed the ruling stating: Review of authorities addressing the question of whether gifts to the obligor parent should be considered income for purposes of determining the level of the obligor’s support obligation leads us to the determination that the principal amount of gifts and inheritances should not be considered as income for purposes of [Alaska R. Civ. P. 90.3 (defining “adjusted gross income” for child support purposes)]. We are persuaded that any other approach blurs the easily administered and well-established historical distinction between gifts and earned income. In short, we conclude that the authorities which refuse to recognize the inclusion of gifts in determining the level of the obligor’s adjusted gross income for purposes of calculating a child support obligation represent the correct rule of law. We therefore hold that it was error for the superior court to include any gifts from Fred’s parents in calculating his child support obligation under Civil Rule 90.3. Nass, 904 P.2d at 416. ¶36 In True v. True, 615 A.2d 252 (Maine 1992), the Maine Supreme Court rejected father’s argument that mother’s gross income should include her grandmother’s regular monetary gifts. He argued that while the applicable statute, 19 M.R.S.A. § 311(5)(A) (1991), did not reference “gifts,” it defined “gross income” as “any ongoing source,” and that mother’s gifts from her grandmother therefore qualified. The Court disagreed, reasoning that mother’s grandmother was under no legal obligation to pay the money. Consequently, the court concluded the monetary gifts were not income. True, 615 A.2d at 253. ¶37 We are persuaded by the rationales of Nass and True. Bunny has no legal obligation to continue these gifts; in fact, she ceased gifting the family $75,000 per year in 2011. It would be fundamentally unfair to base a parent’s future monthly child support obligation on gifts not yet received and which may never be given. The unpredictable largesse or generosity of a third person should not be a basis for determining a parent’s ability to provide child support. We therefore reverse the District Court’s order imputing to Herb $75,000 in annual earnings for purposes of child support calculation. ¶38 We also conclude that it was inappropriate for the District Court to take into account Bunny’s past monetary gifts when calculating Herb’s maintenance obligation. Unlike the statutes and supporting regulations governing child support, the maintenance statute does not contemplate the imputation of income to a spouse tasked with paying maintenance. Rather, the District Court is tasked with considering the paying spouse’s ability to meet his own needs while meeting the needs of the spouse seeking maintenance. Section 40-4-203(2)(f), MCA. Because there is no guarantee that Herb will continue to receive substantial gifts from Bunny into the foreseeable future, it would be inappropriate to factor such unknowable additional resources into Herb’s income for purposes of calculating maintenance. We therefore conclude that to the extent the court’s findings of fact concerning maintenance took into account future income deriving from Bunny’s gifts, these findings were clearly erroneous. ¶39 As we have determined Herb’s mother’s gifts to Herb are not to be considered as income, we need not address Herb’s complaint that the District Court erred in failing to consider Anne’s parents’ gifts to her as income. We further decline to address Anne’s claim that Herb and Bunny are intentionally hiding resources from Anne, the district court, and the Internal Revenue Service. While Anne alluded in the District Court to Herb and Bunny engaging in a “game of hiding money,” she presented no evidence or legal argument in support of such a claim to the District Court. It is well-established that we will not address a new legal theory or argument presented for the first time on appeal. Guill v. Guill, 2014 MT 316, ¶ 17, 377 Mont. 216, 339 P.3d 81. ¶40 Did the District Court err and/or abuse its discretion in apportioning the marital estate? ¶41 Herb asserts that the District Court “vastly underestimated” the seriousness of the $5,580,625 debt to the F.D.I.C. and this underestimation contributed to the District Court’s “flawed analysis of the ‘resources available’ ” for determining child support and maintenance. He also claims the District Court abused its discretion in valuing the missing jewelry at $50,000 and requiring Herb to either return the jewelry or pay Anne its value. As we are remanding this matter for a redetermination of income and resources available for purposes of calculating maintenance and child support, and because property distribution may serve in some instances as an alternative to maintenance (See § 40-4-202(l)(c), MCA), it may be necessary for the District Court upon remand to review the distribution of the marital assets and debt as well. We leave this determination to the District Court. ¶42 Lastly, we reject Herb’s argument that the District Court abused its discretion by issuing a “punitive decree.” The District Court was presented with conflicting evidence during the proceeding, and the court’s decree repeatedly referenced Herb’s lack of credibility. As we have frequently stated, “It is not this Court’s function, on appeal, to reweigh conflicting evidence or substitute our evaluation of the evidence for that of the district court. We defer to the district court in cases involving conflicting testimony because we recognize that the court had the benefit of observing the demeanor of witnesses and rendering a determination of the credibility of those witnesses.” State v. Bieber, 2007 MT 262, ¶ 23, 339 Mont. 309, 170 P.3d 444 (citation omitted). We conclude that though remand is necessary for the reasons stated, the decree issued by the District Court was not punitive. CONCLUSION ¶43 For the foregoing reasons, we affirm the District Court’s imputation of Herb’s earning capacity at $100,000 but reverse and remand the court’s inclusion of Bunny’s monetary gifts into his annual resources for purposes of child support and spousal maintenance calculation. ¶44 Reversed and remanded for further proceedings consistent with this Opinion. CHIEF JUSTICE McGRATH, JUSTICES SHEA, WHEAT and RICE concur. The list of distributed marital assets set forth in the order totals $86,466. On remand, the District Court should re-calculate the value of distributed marital assets. Herb testified at the dissolution hearing that he believed the entire Fox Creek Holding debt should be allocated to him.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Westchester Surplus Lines Insurance Company (Westchester) appeals from orders entered by the Fourth Judicial District Court, Missoula County, in this declaratory action that granted summary judgment against Westchester and in favor of its insureds, Keller Transport, Inc. (Keller), and Wagner Enterprises, LLC (Wagner). We affirm in part and reverse in part. We address the following issues on appeal: 1. Did the District Court err by determining that Westchester’s policy was ambiguous and that it provided an additional $4 million in coverage under the “general aggregate” limit? 2. Did the District Court err by holding that Westchester breached its duty to defend the insureds under its policy? PROCEDURAL AND FACTUAL BACKGROUND ¶2 In April 2008, Keller leased a tanker truck from Wagner to transport gasoline to Kalispell, Montana. On Highway 35, adjacent to Flathead Lake, the truck’s trailer traveled off the road, overturned, and spilled 6,380 gallons of gasoline. The gasoline flowed underneath the highway and beneath several homeowners’ (Homeowners) properties. ¶3 Keller and Wagner were both insured under a Commercial Transportation Policy issued by Carolina Casualty Insurance Company (CCIC), which provided two distinct coverages: commercial automobile (Auto), and commercial general liability (CGL). The stated limit for the Auto coverage was $1 million per accident, while the stated limit for the CGL coverage was $1 million for each occurrence, as well as a $2 million “General Aggregate.” The CGL provisions stated that its “General Aggregate” limit was the most that would be paid under the CGL coverage regardless of the number of insureds or persons making claims. CCIC’s policy stated that CCIC had the duty to defend its insureds against any lawsuit that might implicate the policy, but that such duty terminated when the coverage limits had “been exhausted by payment of judgments or settlements.” ¶4 Westchester insured both Keller and Wagner under an excess liability policy, which covered those losses exceeding the coverage limits of CCIC’s policy. Stated limits of the Westchester excess policy were $4 million for each “occurrence” as well as a $4 million “General Aggregate.” The term “General Aggregate” was not defined. The Westchester policy incorporated the CCIC policy, stating, “[e]xcept as otherwise stated herein, and except with respect to (1) any obligation to investigate or defend any claim or suit, or (2) any obligation to renew, the insurance afforded by this policy shall apply in like manner as the underlying insurance described in the Declarations.” The Declarations in turn referenced the coverages of the CCIC policy. Regarding the duty to defend, the Westchester policy stated that Westchester “shall not be called upon to assume charge of the settlement or defense of any claim made or proceeding instituted against the insured; but the company shall have the right and opportunity to associate with the insured in the defense and control of any claim or proceeding reasonably likely to involve the company.” ¶5 The Westchester policy contained a federally-mandated endorsement, known as the “MCS-90,” as a protection for third parties injured in motor carrier vehicle accidents. The MCS-90 endorsement was created by the Motor Carrier Act of 1980 as a means to guarantee recovery for injured third parties when insurance coverage was lacking. The MCS-90 required Westchester to pay up to the prescribed limit for each motor carrier vehicle accident regardless of whether covered by the policy. The insured motor carrier may be required to reimburse the insurer for any payout the insurer would not otherwise have been obligated to make. The MCS-90 attached to Westchester’s policy stated “[t]his insurance is excess and the company shall not be liable for amounts in excess of $4,000,000 for each accident in excess of the underlying limits of $1,000,000 for each accident.” ¶6 Following the accident, CCIC initiated payments for related cleanup expenses and litigation costs. Late in 2008, CCIC exhausted the $1,000,000 Auto coverage limit of its policy. Shortly before reaching the limit, CCIC notified Keller and Wagner that its duty to defend would end once the Auto coverage had been exhausted, citing the duty to defend provision of its policy. In January 2009, the Homeowners initiated suit against Keller and Wagner in the Twentieth Judicial District Court, Lake County, alleging negligence for causing the accident and in the manner that clean-up efforts had been implemented, which Homeowners asserted had caused further damage (hereinafter “the tort action.”). Because the limits of its Auto coverage had been exhausted, CCIC referred the matter to Westchester. Westchester undertook defense of the suit on behalf of Kohler and Wagner pursuant to a reservation of rights, noting the provision of its policy that disavowed a duty to defend and, like CCIC, Westchester stated it would continue defending only until “the applicable Westchester Policy Limit has been exhausted.” Westchester did not seek to withdraw from the defense pursuant to the reservation of rights, and continued defending Keller and Wagner until December 2009, by which time it had paid $4 million in clean-up expenses and litigation costs. On the ground that the limit of its excess coverage for Auto liability had been exhausted, Westchester referred the defense back to CCIC in early 2010. Keller and Wagner did not challenge Westchester’s assessment that the limits of its policy had been reached. ¶7 In response to Westchester’s referral, CCIC made assurances to Keller and Wagner in February 2010 that it would continue to provide a defense despite having previously exhausted the limits of its policy’s Auto coverage. CCIC’s payments for defense costs resumed in May 2010. Despite the delay in re-initiation of payments, Keller and Wagner remained represented by counsel at all times. ¶8 In August 2010, CCIC initiated this action (hereinafter “the declaratory action”) in the Fourth Judicial District Court, Missoula County, seeking a declaration of CCIC’s and Westchester’s responsibilities for Keller’s and Wagner’s defense and costs, naming Westchester, Keller and Wagner. Thereafter, Homeowners made a claim that the CCIC policy provided an additional $1 million pursuant to the CGL coverage, and that the Westchester policy likewise provided an additional $4 million in excess limits under the CGL coverage. On the premise that the post-rollover negligent conduct of Keller and Wagner constituted a separate occurrence under the CGL coverage, Homeowners demanded an additional $5 million to settle their claims. In response to these claims, CCIC amended its complaint in this declaratory action, seeking a ruling on whether separate CGL coverage was implicated by the Homeowners’ claims in the underlying litigation, in addition to the Auto coverage. Westchester likewise sought a declaration that the limit under its excess policy was $4 million in total, regardless of the coverages that applied, and that the limit had already been exhausted. CCIC and Westchester thus opposed Homeowners’ contention that the policies provided an additional $5 million in coverage. ¶9 Keller and Wagner, on the premise they had been prejudiced by the delay in the re-initiation of defense payments by CCIC earlier in the year, entered settlement negotiations with Homeowners, excluding CCIC and Westchester. In January 2011, eight months after their defense payments had resumed, Keller and Wagner filed confessions of judgment in the tort action in favor of Homeowners that stipulated Homeowners had suffered $13,066,474 in damages. This amount was to be offset by $3 million that Homeowners had received from a settlement with another defendant. Keller and Wagner assigned their rights under the policies to Homeowners, who agreed to collect the remainder of the judgments “by any legal means only upon and against” CCIC and Westchester. Between them, CCIC and Westchester fully paid Keller’s and Wagner’s defense costs from the commencement of the underlying tort action through the entry of their confessions of judgment. ¶10 Shortly before the confessions of judgment were filed in the tort action, CCIC and Westchester moved to intervene in that case. CCIC and Westchester asserted a right to a determination establishing the reasonableness of any damages judgment, and the right to participate in that determination. The Lake County District Court issued an order stating it would not rule on CCIC’s and Westchester’s motion to intervene until the coverage issue had been determined in the Missoula County declaratory action. ¶11 All parties moved for partial summary judgment on two issues in the declaratory action: 1) whether there was additional coverage under CCIC’s CGL coverage and Westchester’s excess insurance, and 2) whether CCIC and Westchester had breached their duty to defend Keller and Wagner. ¶12 On the first issue, the Missoula County District Court determined that an additional $1 million in limits under CCIC’s CGL coverage were implicated by Homeowners’ claims. Regarding Westchester’s excess policy, the District Court held that an additional $4 million was available, reasoning that the phrase “general aggregate” limit was undefined and ambiguous, and could be read as establishing a “general aggregate” limit for excess payments for each coverage in the underlying policy, rather than only establishing a “general aggregate” limit for the entire policy. Regarding the second issue, the District Court held that CCIC and Westchester had both breached their duties to defend. Regarding Westchester, the District Court held that Westchester had assumed a duty to defend, despite the language disavowing a duty in its policy, by engaging to pay Keller’s and Wagner’s defense costs, and, in light of the court’s determination that an additional coverage amount was available, had violated that duty by withdrawing from the defense before such additional amounts were expended. ¶13 Westchester filed a Rule 60(b) motion, seeking reconsideration of the District Court’s rulings on coverage and the duty to defend. Homeowners then filed a second motion for partial summary judgment, seeking a determination from the court that the stipulated damages were reasonable, and that Westchester was required to pay the judgments of $13,066,477, less the $3 million Homeowners had received in another settlement, but in addition to the $4 million Westchester had already paid. The District Court denied Westchester’s Rule 60(b) motion, slightly altering its first order granting summary judgment to Homeowners. The District Court held that Westchester’s policy was not only ambiguous on its face, but particularly so in light of the MCS-90 endorsement attached to the policy. The District Court reasoned that because the MCS-90 endorsement stated that Westchester was not liable for amounts in excess of $4 million “for each accident,” this statement conflicted with the $4 million “general aggregate” limit, and required resolution in favor of the insured. The District Court rejected Westchester’s arguments on the duty to defend and reaffirmed its ruling that the duty had been breached, and that Westchester was liable for the stipulated judgments. The District Court granted Homeowners second motion for partial summary judgment, ruling that Westchester was not entitled to a reasonableness hearing, but that undisputed facts raised to the court in the summary judgment hearing were sufficient to establish that the stipulated judgments were reasonable as a matter of law. ¶14 Westchester appeals the orders granting summary judgment to Homeowners on the interpretation of the policy, the duty to defend, and denial of a hearing on the reasonableness of the stipulated damages. STANDARD OF REVIEW ¶15 We review the interpretation of insurance contracts de novo. Tidyman’s Mgmt. Servs. v. Davis, 2014 MT 205, ¶ 13, 376 Mont. 80, 330 P.3d 1139. DISCUSSION ¶16 1. Did the District Court err by determining that Westchester’s policy was ambiguous and that it provided an additional $4 million in coverage under the “general aggregate” limit? ¶17 The parties both acknowledge that the $4 million “general aggregate” limit in the Westchester policy represents a maximum dollar liability. The disagreement, and alleged ambiguity, concerns the question: to what does this maximum apply? According to Westchester, the term “general aggregate” is commonly used in policies and means the maximum that applies to all coverages under the entire policy. According to Homeowners, because the term was undefined in the policy, and given the structure of the excess and underlying policies here, the maximum must apply individually to each of the underlying coverages, or at least create an ambiguity that makes it so. We agree with Homeowners. ¶18 We first dispense with the notion the MCS-90 endorsement is a basis to conclude the policy is ambiguous. The federally-mandated MCS-90 endorsement is a surety provision, not a modification of the policy to which it is attached. Carolina Cas. Ins. Co. v. Yeates, 584 F.3d 868, 878 (10th Cir. 2009) (“The insurer’s obligation under the MCS-90 endorsement [is] one of a surety rather than a modification of the underlying policy.”). It operates as a safety net to protect the public when coverage for motor carrier vehicle accidents is lacking. Canal Ins. Co. v. Carolina Cas. Ins. Co., 59 F.3d 281, 283 (1st Cir. 1995). The MCS-90 obligates an insurer to guarantee a source of coverage for third parties injured by a negligent motor carrier, but only after it is determined that (1) the policy to which the endorsement is attached does not otherwise provide coverage and (2) either no other insurer is available to satisfy the judgment against the motor carrier, or the motor carrier’s insurance coverage is insufficient to satisfy the federally-prescribed minimum levels of financial responsibility. Yeates, 584 F.3d at 878. The language of the endorsement demonstrates that it is not intended to affect the terms of the policy’s coverage: “all terms, conditions, and limitations in the policy to which the endorsement is attached shall remain in full force and effect as binding between the insured and the company.” Further, because a court must first determine whether the policy provides coverage before considering the applicability of the MCS-90, the endorsement necessarily is not a part of the policy for interpretational purposes. The District Court erroneously considered the provisions of the MCS-90 in analyzing the coverage question at issue here. ¶19 The terms in an insurance contract are to be interpreted according to their common sense meaning, viewed from the perspective of a reasonable insurance consumer. Am. States Ins. Co. v. Flathead Janitorial & Rug Servs., 2015 MT 239, ¶ 12, 380 Mont. 308, 355 P.3d 735. A policy provision is ambiguous when, in light of the contract as a whole, it is reasonably susceptible to two different interpretations. Farmers Alliance Mut. Ins. Co. v. Holeman, 1998 MT 155, ¶ 25, 289 Mont. 312, 961 P.2d 114; Fisher v. State Farm Mut. Auto. Ins. Co., 2013 MT 208, ¶ 15, 371 Mont. 147, 305 P.3d 861. Because insurers draft the language of insurance contracts and the object of an insurance contract is to give protection to the insured, we construe ambiguous provisions “against the insurer and in favor of extending coverage.” Fisher, ¶ 15 (citation omitted). ¶20 “Item 5” of Westchester’s Policy Declarations addresses “Underlying Insurance” and states “See Schedule A - Schedule of Underlying Insurance.” In turn, Schedule A sets forth the coverages and financial limits of the coverages within the underlying CCIC policy that was issued to Keller and Wagner: SCHEDULE A - SCHEDULE OF UNDERLYING INSURANCE (A) Automobile “Bodily Injury” & “Property Liability Damage” Carolina Casualty Insurance Co. 02/15/08 - 02/01/09 Combined Single Limit $1,000,000 Each Occurrence (B) Commercial $1,000,000 Each Occurrence General $2,000,000 General Aggregate Liability () Per Project/Location Carolina Casualty Insurance Co. 02/15/08 - 02/01/09 $2,000,000 Products/Completed Operations Aggregate $1,000,000 Personal & Advertising Injury ¶21 Item 6 of the Westchester Declarations addresses “Limits of Insurance,” as follows: LIMITS OF INSURANCE $4.000.000 Each Occurrence; $4,000,000 General Aggregate $4.000,000 Products/Completed Operations Aggregate excess of the limits indicated in' Item 5 of the Declarations. [Underlining in original.] ¶22 The District Court reasoned that, given that Schedule A makes clear that the Westchester policy provides excess insurance for both the Auto and CGL coverages, and that Item 6 makes clear there is a $4 million aggregate limit on something, a reasonable insurance consumer might draw two different, but plausible, interpretations. On one hand, the $4 million general aggregate limit might represent the maximum liability of the entire excess policy, so that $4 million exhausted under one coverage would mean there was nothing available under the other coverage. On the other hand, the $4 million general aggregate limit might represent the maximum liability under each coverage, so that $4 million exhausted under one coverage had no bearing on the limits available under the other coverage. The District Court stated that Westchester’s failure to define “general aggregate” makes one no more plausible than the other. ¶23 The District Court correctly noted that the fundamental interpretational problem is caused by Westchester’s failure to define the term “general aggregate” in a policy that provides excess coverage for an underlying policy with more than one coverage and more than one stated limit. A reasonable consumer is faced with applying the “follow-form” language of the excess policy: “the insurance afforded by this policy shall apply in like manner as the underlying insurance described in the Declarations.” The phrase “in like manner” creates an apparent symmetry between the two policies that supports Homeowners’ ambiguity argument. Schedule A lists two aggregates under the CGL coverage of the CCIC policy, including “GENERAL AGGREGATE ( ) PER PROJECT/LOCATION” and “PRODUCTS/COMPLETED OPERATIONS AGGREGATE” (PCO), and lists the amount of $2 million for each of these aggregates within a column headed with the oxymoronic “COMBINED SINGLE LIMIT.” The Auto coverage contains only the term “occurrence,” with no reference to an “aggregate,” and lists a “Combined Single Limit” of $1 million. A reasonable consumer attempting to apply the excess insurance “in like manner” could reasonably conclude that the Limits of Insurance stated in Item 6 of the excess policy are meant to correspond to the identically stated counterparts in Schedule A. Thus, the $4 million “General Aggregate” and $4 million “PCO Aggregate” are applicable only to the CGL coverage because that is the only coverage for which those terms are used in the underlying insurance stated in Schedule A. Then, the “$4,000,000 Each Occurrence” stated in the excess policy’s Limits of Insurance provision would likewise appear to correspond to the Auto coverage’s “$1,000,000 Each Occurrence” stated in Schedule A. Under this reasonable, logical reading, a consumer could expect to have $4 million in excess insurance per occurrence under the Auto coverage, with no aggregate, and $4 million in excess insurance, with a $4 million aggregate, under the CGL coverage, or a total of $8 million in excess limits for the two coverages in this case. ¶24 Westchester cites Weyerhaeuser Co. v. Commercial Union Ins. Co., 15 P.3d 115, 123 (Wash. 2000), and similar authority, for the proposition that, because the term “general aggregate” as used in the excess policy is not expressly tied to a specific coverage, it must convey the total limit of excess coverage for the entire underlying policy. However, reliance on Weyerhaeuser is flawed here. First, it should be noted that we look to the four corners of a contract to ascertain the parties’ intent, because context can provide meaning. K&R P’ship v. City of Whitefish, 2008 MT 228, ¶ 26, 344 Mont. 336, 189 P.3d 593. Therefore, the manner in which the Weyerhaeuser policy applied its aggregates is not necessarily relevant or instructive to the manner in which the Westchester policy is applied. But, further, the Weyerhaeuser policy was well-defined and left no confusion regarding the applicability of the aggregate limits. It avoided the confusion present here by explicitly identifying the underlying coverages that had aggregate limits, leaving little ambiguity that the named coverages had aggregate limits while the unnamed coverages did not. See Weyerhaeuser, 15 P.3d at 123 (finding policy language unambiguous). The Weyerhaueser Court could quite confidently state that the application of the aggregate limit was unambiguous due to the precision of the policy language. In contrast, the Westchester policy does not define the term “general aggregate” or give any explicit indication as to how its “general aggregate” limits are to be applied. ¶25 We conclude that Westchester’s policy with regard to application of the general aggregate is ambiguous because, taken as a whole, it is reasonably susceptible to at least two interpretations. Such an ambiguity must be construed in favor of coverage. Fisher, ¶ 15. Therefore, we affirm the District Court’s holding that Westchester’s policy provides an additional $4 million in CGL coverage. ¶26 “[T]he contractual duty to indemnify is breached when an ‘insurer has wrongfully refused to provide coverage to an insured.’ ” State Farm. Mut. Auto. Ins. Co. v. Freyer, 2013 MT 301, ¶ 27, 372 Mont. 191, 312 P.3d 403. Westchester incorrectly interpreted its policy and therefore breached its duty to indemnify Keller and Wagner to the proper limits of its policy. “[A]n insurer’s wrongful refusal to indemnify entitles its insured to recover consequential damages,” including attorney fees. Freyer, ¶ 42. Homeowners requested and were granted these damages by the District Court, and we likewise affirm that award. ¶27 Did the District Court err by holding that Westchester breached its duty to defend the insureds under its policy ? ¶28 Westchester argues at length that its policy did not impose a duty to defend, but nonetheless acknowledges that it agreed to pay for Keller’s and Wagner’s defense upon exhaustion of CCIC’s primary coverage limits “until the limits of [Westchester’s] excess policy were exhausted,” under a reservation of rights. It further argues that once its “policy limits were exhausted, the [tort] proceeding would no longer ‘involve the company’ ” as that term is used in Condition E of the policy, and at that point Westchester “was unambiguously authorized to withdraw.” Given Westchester’s assumption of the defense by agreement until the policy limits were exhausted, and our holding above that additional policy limits were implicated by Homeowners’ claims, we hold that Westchester had a continuing duty to defend its insureds herein, and decline to further address Condition E regarding Westchester’s options in undertaking a defense. We thus turn to the question whether Westchester breached that duty to defend. ¶29 Homeowners argue that Westchester breached its duty by withdrawing from the defense before the additional policy limits were exhausted because that created a delay in defense payments that prejudiced Keller’s and Wagner’s defenses. Westchester argues that it did not breach the duty because the insureds continued to be represented by counsel at all times, Westchester and CCIC paid all of the insureds’ defense costs through the entry of the confessional stipulated judgments, including for expert witnesses, and the stipulated judgments were entered long after any delay in defense payments. For the reasons set forth below, we agree with Westchester. ¶30 “Where the insurer refuses to defend a claim and does so unjustifiably, that insurer becomes liable for defense costs and judgments.” Lee v. USAA Cas. Ins. Co., 2004 MT 54, ¶ 19, 320 Mont. 174, 86 P.3d 562 (citing Independent Milk & Cream Co. v. Aetna Life Ins. Co., 68 Mont. 152, 216 P. 1109 (1923)). The Independent Milk rule has been reiterated by this court multiple times in more recent years. See Lee, ¶ 19; Tidyman’s, ¶ 25; and Farmers Union Mut. Ins. Co. v. Staples, 2004 MT 108, ¶ 20, 321 Mont. 99, 90 P.3d 381. Although we are unaware of a Montana case where this rule has been applied to an insurer that voluntarily assumed a duty to defend, other jurisdictions have done so. See Bluestein & Sander v. Chi. Ins. Co., 276 F.3d 119, 122 (2nd Cir. 2002); United Pac. Ins. v. Pac. Nw. Research Found., 593 P.2d 1278, 1280 (Or. App. 1979); Ging v. American Liberty Ins. Co., 423 F.2d 115, 120 (5th Cir. 1970). Wefindthese authorities persuasive, and hold that Independent Milk applies to a breach of an assumed duty to defend. ¶31 At the time Westchester withdrew from Keller’s and Wagner’s defense, there had been no suggestion that additional coverage was implicated by Homeowners’ claims. Indeed, Keller and Wagner, although desiring that Westchester would continue to provide a defense, also understood that Westchester’s policy limits had been exhausted. Homeowners’ claim for additional coverage came eight months later, after CCIC had initiated this declaratory action for a determination of CCIC’s and Westchester’s respective duties, which Westchester joined. Unlike Tidyman’s, where the insured confessed judgment during a time his insurer declined to provide a defense, Tidyman’s, ¶ 9, Wagner and Keller were not declined a defense. Although there was a short delay in payments after the defense was tendered back by Westchester, CCIC promptly agreed to provide a defense and re-initiated payments. All defense expenses incurred up to the entry of the stipulated judgments were paid. It was some eight months after defense payments resumed that Keller and Wagner confessed judgment. They were continually represented by counsel up to that point, evidenced by their counsel’s numerous filings in the underlying action, even during the period of delayed payment. ¶32 Homeowners argue the delay in defense payments hindered Wagner’s efforts to retain experts, but the record reveals that this was a matter of case management on the part of Wagner. Wagner waited until one month before its expert disclosure deadline in September 2010 — seven months after CCIC agreed to resume its defense and four months after defense payments re-started — before asking Keller if Wagner could share Keller’s experts at trial. When Keller declined, Wagner scrambled to locate its own experts in the remaining time. There is scant indication in the record that the delay in Wagner’s retention of experts had anything to do with the delay in defense payments, particularly in light of the fact that Keller’s experts were obtained at the insurer’s expense as a defense cost. Notably, Wagner was still able to timely obtain experts, at the insurer’s expense. ¶33 The stipulated judgments here were entered eight months after defense payments resumed. A defense was being provided and all defense costs were being covered. The facts of this case demonstrate that the insureds were not “improperly abandon[ed]” by their insurers and left without a defense such that they would be “justified in taking steps to limit [their] personal liability” by entering a stipulated judgment. Freyer, ¶ 34 (citations omitted); Tidyman’s, ¶ 25 (citations omitted). The authority upon which we have relied for these principles holds that a stipulated judgment will not be enforced “against an insurer where the insurer has conceded coverage and defended its insured, and where there has been no finding of bad faith against the insurer.” Freyer, ¶ 34 (citations omitted). Therefore, the District Court’s order that Westchester is liable for the stipulated judgments must be reversed. This being so, it is unnecessary for us to address Westchester’s appeal of the District Court’s denial of a hearing on the reasonableness of the stipulated damages. CONCLUSION ¶34 The Westchester policy provides an additional $4 million in excess insurance pursuant to the CGL coverage. Westchester thus breached its duty to indemnify Keller and Wagner, and the District Court’s order in this regard, including assessment of consequential damages, is affirmed. Westchester’s assumed duty to defend continues at least until these policy limits are exhausted. However, Westchester did not breach the duty to defend and is not liable for the stipulated judgments. To this extent, the District Court is reversed. ¶35 Affirmed in part and reversed in part. CHIEF JUSTICE McGRATH, JUSTICES BAKER, COTTER, SHEA and WHEAT concur. Homeowners and CCIC have settled all claims and the District Court’s decision regarding the CCIC policy is not before the Court. Notably, CCIC’s insurance policy defined the term “general aggregate” as used for its policy. See Olin Corp. v. American Home Assurance Co., et al., 704 F.3d 89, 93-94 (2d. Cir. 2012) (“Each policy also ‘follows form’ to lower-level excess policies, which means that it adopts their terms and conditions.”).
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OPINION AND ORDER ¶1 Respondent Steven T. Potts (Potts), an attorney licensed to practice law in the State of Montana, objects to the Statement of Costs filed by the Office of Disciplinary Counsel (ODC) on May 29, 2007, stemming from the disciplinary proceeding against Potts before the Commission on Practice of the Supreme Court of the State of Montana (the Commission). Potts also requests a hearing before an Adjudicatory Panel pursuant to Rule 9A(8), Montana Rules for Lawyer Disciplinary Enforcement (MRLDE), and this Court’s decision in In re Potts, 2007 MT 81, 336 Mont. 517, 158 P.3d 418. We deny Potts’s objections to ODC’s Statement of Costs. We grant Potts’s request for a hearing before an Adjudicatory Panel regarding the reasonableness of ODC’s costs. ¶2 Potts misapprehends the scope and application of the MRLDE. He suffers from the misimpression that M. R. App. P. 33 and related Montana statutes control the issue of costs imposed as part of the discipline and sanction by the Court for Potts’s violation of various provisions of the Montana Rules of Professional Conduct (MRPC). We take this opportunity to disabuse Potts, specifically, and all members of the Bar, generally, of the proper application and interpretation of the MRLDE. ¶3 The Commission entered its Findings of Fact, Conclusions of Law, and Recommendations on January 5,2006, regarding a complaint filed against Potts. The Commission concluded that Potts violated Rules 1.2(d) and 3.3(a)(2) of the MRPC during his representation of heirs in a will contest. The Commission recommended that this Court publicly censure Potts and suspend him from the practice of law for a period of thirty days. The Commission further recommended that the Court order Potts to pay the “costs of these proceedings.” ¶4 We adopted the Commission’s Findings of Fact and Conclusions of Law, but we elected to revise the recommended discipline and sanction. Potts, ¶¶ 79-80. We chose to impose a public censure, without any suspension, along with the costs of the disciplinary proceedings before the Commission as the appropriate discipline and sanction for Potts’s violation of the MRPC. Potts, ¶¶ 80 and 82. We censured Potts at a public session of this Court on May 2, 2007. Potts, ¶ 81. Potts chose not to make any statement to the Court at the censure; he instead elected to have his counsel address the Court. Potts’s counsel assured the Court that Potts accepted the Court’s decision. ¶5 We further directed ODC to assemble and serve upon Potts an itemized list of the costs and expenses incurred in this matter. Potts, ¶ 82. ODC filed its Statement of Costs on May 29, 2007. Potts’s acceptance of the Court’s decision at his public censure apparently did not include the Court’s decision to impose costs as part of the discipline and sanction pursuant to Rule 9(A)(8), MRLDE. Potts timely filed his objection to the costs on June 8, 2007, and at the same time requested a hearing before an Adjudicatory Panel. ¶6 Potts presents the following objections to ODC’s Statement of Costs: ¶7 1. That ODC failed to claim costs within a timely manner as required by § 25-10-501, MCA, and § 25-10-503, MCA; and ¶8 2. That ODC improperly included costs not contemplated by § 25-10-201, MCA. BACKGROUND ¶9 Our order in Potts directed Potts to “pay, or make arrangements to pay, the costs of the proceedings before the Commission.” Potts, ¶ 82. We further directed ODC to assemble and serve upon Potts an itemized lists of the “costs and expenses” incurred in this matter. Potts, ¶ 82. ODC assembled and served upon Potts its Statement of Costs on May 29, 2007. ¶10 ODC requested costs of $10,388.96, including $7,553.55 for ODC, and $2,835.41 for the Commission. ODC’s requested costs include travel, lodging, and meals for ODC investigation in Great Falls and for the hearing in Great Falls before the Commission on July 27, 2005. ODC’s requested costs also include the costs of depositions, fees for professional services provided by several lawyers, and copying charges. ODC’s requested costs for the Commission include the transcript of the hearing and travel expenses to Great Falls for the hearing for participating Commission members. DISCUSSION ¶11 Potts argues first that M. R. App. P. 33 governs costs in all civil cases. M. R. App. P. 33(d) provides that costs should be taxed pursuant to “Montana Code Annotated, sections 25-10-101, 25-10-102, 25-10-103, and 25-10-105.” Section 25-10-501, MCA, and § 25-10-503, MCA, in turn, set forth the process by which a party may claim costs in a civil action at the district court and on appeal. Section 25-10-501, MCA, provides that a party must serve a bill of costs within five days after the decision of the district court. Section 25-10-503, MCA, provides a 30-day window in which a party must file a bill of costs on appeal. As a result, Potts contends that ODC had to claim costs within five days if the Court’s review of the Commission’s recommendation in Potts constituted an original proceeding, and within thirty days if the Court’s review of the Commission’s recommendation in Potts constituted an appeal. ¶12 Potts points to the fact that we issued our decision in Potts on March 22,2007, and that ODC did not file its Statement of Costs until May 29, 2007. He suggests that our decision in Delaware v. K-Decorators, Inc., 1999 MT 13, ¶ 71, 293 Mont. 97, ¶ 71, 973 P.2d 818, ¶ 71, holds that ODC’s untimely claim of costs waives its right to receive costs. Delaware simply stands for the proposition that a party must file a memorandum of costs within five days after the jury returns its verdict. Delaware, ¶ 66. Here, of course, ODC did not seek its costs following a jury trial. ODC instead filed its Statement of Costs as directed by the Court in Potts. Delaware, and its five-day rule, has no application. ¶13 ODC filed its memorandum in opposition on June 28,2007. ODC counters that the time limits in § 25-10-501, MCA, and § 25-10-503, MCA, do not apply to disciplinary proceedings before the Commission. ODC argues instead that Rule 9(A)(8), MRLDE, controls the assessment of costs in disciplinary proceedings. We agree. ¶14 We declared in Potts that this Court “ ‘possesses original and exclusive jurisdiction and responsibility under Article VII, Section 2(3) of the 1972 Montana Constitution and the provisions of Chapter 61, Title 37, Montana Code Annotated, in addition to its inherent jurisdiction, in all matters involving admission of persons to practice law in the State of Montana, and the conduct and disciplining of such persons.’ ” Potts, ¶ 31 (quoting Introduction, MRLDE). We specifically adopted and promulgated the MRLDE in 2002 in the exercise of this jurisdiction. Introduction, MRLDE. ¶15 We rejected a similar attempt to limit the ability of the ODC to prosecute lawyer disciplinary complaints in In the Matter of Joseph Engel, III, 2007 MT 172, 338 Mont. 179, 169 P.3d 345. Engel argued that the MRLDE did not allow for our review of ODC’s objection to the Commission’s decision unless ODC first sought reconsideration of the Commission’s decision under Rule 14, MRLDE. We explained, however, that Rule 14’s limitation of our review to matters that had been reconsidered by the Commission did not apply to formal complaints submitted by ODC. Engel, ¶ 20. The apparent ambiguity cited by Engel originated out of the former disciplinary rules that existed before we made “global changes to the lawyer disciplinary system that became effective in July 2002.” Engel, ¶ 20. ¶16 Potts misplaces reliance on M. R. App. P. 33 as the authority for including costs of the proceedings before the Commission as part of the discipline and sanction imposed against him. M. R. App. P. 33 generally governs costs in civil cases and focuses on costs being awarded to the “successful party” in the underlying litigation. Rule 9(A)(8), MRLDE, by contrast, specifically allows for the assessment of “the cost of the proceedings, investigations and audits” as a form of discipline and sanction to be imposed against the disciplined lawyer. We did not award “costs” to ODC as the “successful party” in the underlying litigation pursuant to M. R. App. P. 33. The Court instead imposed costs against Potts pursuant to Rule 9(A)(8), MRLDE, as part of the discipline and sanction against Potts for his violation of various provisions of the MRPC. Potts, ¶ 82. ¶17 Potts’s argument founders when set against the plain language of Rule 9(A)(8), MRLDE, regarding the imposition of costs. Rule 9(A)(8), MRLDE, provides no time limit for the filing of a statement of costs by ODC. The only time limit imposed relates to the written objections filed by the lawyer who is the subject of the disciplinary proceedings. Our order in Potts likewise contains no time limit regarding the filing of the statement of costs by ODC. The order simply parrots the language in Rule 9(A)(8), MRLDE, regarding the time limit by which Potts could file written objections. Potts, ¶ 82. ¶18 Rule 9(A)(8), MRLDE, makes no reference to § 25-10-501, MCA, and § 25-10-503, MCA. It would be anomalous indeed to allow a statute never mentioned anywhere in the MRLDE to limit the scope of the discipline and sanction permitted by Rule 9(A)(8). In fact, to do so would contradict and render meaningless certain provisions of Rule 9(A)(8). For example, Rule 9(A)(8) allows the Court to impose discipline in the form of “[ajssessment of the cost of the proceedings, investigations and audits.” Section 25-10-201, MCA, makes no mention of costs including “investigations and audits.” Potts’s position would prevent the Court from imposing a sanction against a lawyer that included the cost of the investigations and audits undertaken to develop and prosecute the disciplinary complaint. Nothing in Rule 9(A)(8), MRLDE, hints of such a prohibition. ¶19 Potts also challenges ODC’s claims for fees for professional services provided by Taleff Law Office, P.C. (Taleff), and Crowley, Haughey, Hanson, et. al (Crowley). Our unpublished order in In the Matter of Flaherty, No. 03-147 (Nov. 9, 2004), unnecessarily muddied the waters on this issue. Flaherty objected to the Commission’s Bill of Costs to the extent that it claimed $7,889.85 in fees for professional services provided by a private lawyer. Flaherty contended that the MRLDE made no provision for the payment of fees for professional services. We agreed and concluded that the term “costs,” as used in the MRLDE, should be interpreted consistently with “costs” as used in the Montana Code. Although not binding as an -unpublished order, we nevertheless take this opportunity to distinguish, and to the extent necessary, overrule our conclusion in Flaherty that the Court may not impose attorney’s fees as a form of discipline and sanction pursuant to Rule 9(A)(8), MRLDE. ¶20 ODC retained Dennis P. Clarke (Clarke) as special counsel to investigate and prosecute the complaint against Flaherty. The Commission’s appointment or recruitment of a private lawyer to serve as “investigator” constituted routine practice before our adoption of the revised MRLDE in 2002. See e.g., Goldstein v. Commission on Practice, 2000 MT 8, ¶ 11, 297 Mont. 493, ¶ 11, 995 P.2d 923, ¶ 11. Rule 5(7), MRLDE, similarly authorizes this practice. In fact, Rule 5(7), MRLDE, refers to the duty of ODC to use, appoint, and supervise “special investigators and volunteer special counsel” when circumstances necessitate their use. ¶21 ODC apparently used Clarke in one of these two capacities in Flaherty. Clarke investigated the complaint against Flaherty and ultimately prosecuted it in a hearing before the Commission. The Commission determined that Flaherty had violated Rule 1.8(a) and Rule 1.8(b), MRPC, and recommended that Flaherty be suspended for 90 days, that he be publicly censured, and that he pay “the reasonable costs of the proceedings in this matter before the Commission.” ¶22 The Court adopted the Commission’s recommendations “in their entirety.” In the Matter of Patrick F. Flaherty, No. 03-147 (Oct. 6, 2004). Flaherty objected to the fees for professional services included in the Commission’s statement of costs on the grounds that Rule 9, MRLDE, did not expressly include the term “attorney’s fees.” We noted that Montana statutes distinguish between “attorney’s fees” and “costs,” and thus the term “costs” as used in Rule 9, MRLDE, also must not include attorney’s fees. This result disregards the fact that Rule 9(A)(8), MRLDE, authorizes the “[a]ssessment of the cost of proceedings, investigations and audits.” ¶23 The reasoning in Flaherty would preclude the Court from imposing the cost of investigations and the costs of any audits. It strains the imagination how ODC could prosecute a complaint without conducting an investigation, and, occasionally, an audit of financial statements or other data. Rule 5(7), MRLDE, expressly authorizes ODC to use “special investigators” for these purposes. Nothing in Rule 5(7), MRLDE, prevents ODC from paying these special investigators for their services. We did not intend the MRLDE to tie ODC’s hands in deciding what resources could be assigned to evaluate and prosecute a complaint. In fact, we left it to ODC’s discretion to use outside investigators and counsel “when circumstances necessitate their use.” Rule 5(7), MRLDE. We likewise did not intend the MRLDE to limit the Court’s options in choosing the appropriate discipline or sanction as Rule 9(A)(8), MRLDE, covers the waterfront in terms of acceptable forms of discipline. And we surely did not intend for § 25-10-201, MCA, to limit the options provided by Rule 9(A)(8), MRLDE, as the rule makes no mention of this statute, or any other statute for that matter. ¶24 Moreover, the result in Flaherty conflicted directly with our decision in In re Johnson, 2004 MT 6, ¶ 26, 319 Mont. 188, ¶ 26, 84 P.3d 637, ¶ 26, where we directed the disciplined lawyer to “pay his pro rata share (one-fifth) of the costs incurred by the Commission associated with the prosecution of this matter and the other cases referred to above, in accordance with the attached statement of the Secretary of the Commission on Practice.” The attached statement of the Commission’s Secretary included professional fees for the special counsel. See also In re Wenz, 2004 MT 7, ¶ 27, 319 Mont. 200, ¶ 27, 87 P.3d 376, ¶ 27 (same); In re Marra, 2004 MT 8, ¶ 27, 319 Mont. 213, ¶ 27, 87 P.3d 384, ¶ 27 (same). ¶25 These decisions comport with Rule 5(7)’s authorization to ODC to “use, appoint, and supervise” private investigators. As noted in Goldstein, the Commission referred routinely to outside counsel as “investigators” under the former version of the disciplinary rules. Goldstein, ¶ 11. We conclude that § 25-10-201, MCA, in no way limits or constrains the Court’s options in imposing discipline or sanctions pursuant to Rule 9, MRLDE. Rule 9(A)(8), MRLDE, authorizes the Court to impose discipline or sanctions that include fees for professional services. To the extent that our order in Flaherty suggests otherwise, we overrule it. ¶26 Here Potts argues that ODC listed a representative from Taleff and Crowley as witnesses, but called only Mick Taleff to testify. Potts further asserts that Mr. Taleff appeared at the hearing without a subpoena and thus ODC incurred no witness fees in connection with his testimony. ODC’s Statement of Costs lists an expense for professional services from Taleff for services rendered on February 25, 2005. The Commission conducted Potts’s hearing on July 27-28,2005. ODC’s Statement of Costs similarly lists expenses for professional services from Crowley for services rendered on May 31,2005, June 30, 2005, and July 31,2005. None of these dates correspond with the dates of Potts’s hearing. We are left to assume that ODC did not incur these expenses for witness fees. ¶27 Rule 5, MRLDE, sets forth ODC’s powers and duties in investigating and prosecuting lawyer disciplinary matters before the Commission. In particular, Rule 5(7), MRLDE, directs ODC to “appoint and supervise” special investigators for the performance of prosecutorial functions when circumstances necessitate their use. It is unclear whether the professional services rendered by Taleff and Crowley relate to investigations conducted by Taleff and Crowley as part of ODC’s prosecution of this matter before the Commission. Rule 5(7), MRLDE, authorizes ODC to retain outside investigators to assist in the prosecution of a disciplinary proceeding when circumstances necessitate their use. We cannot evaluate on the record before us for what purpose ODC used Taleff and Crowley. The Adjudicatory Panel must make these assessments in the first instance following a hearing. Potts must pay the reasonable costs of these professional services, however, to the extent that they relate to “the cost of proceedings, investigations and audits,” as described in Rule 9(A)(8), MRLDE. ¶28 We turn then to Potts’s remaining claim that ODC included other items in its Statement of Costs not authorized by our order in Potts or by Rule 9, MRLDE. In particular, Potts takes issue with ODC’s claims for investigative costs on the grounds that our order in Potts referred only to the “costs of the proceedings before the Commission.” Potts also argues that ODC cannot recover for the travel expenses for the participating Commission members to the hearing in Helena on July 27 and 28, 2005. ¶29 We first address Potts’s challenge to ODC’s claim for investigative costs. Rule 9, MRLDE, covers discipline and sanctions. Rule 9 provides for nine possible forms of discipline. Rule 9(A) specifically provides that the discipline “may take one or more of the following forms.” These possible forms of discipline range from disbarment, to private admonition, to assessment of costs. Rule 9(A)(8), MRLDE. ¶30 We opted in Potts to impose several forms of discipline, including a public censure and the imposition of “the costs of the proceedings before the Commission.” Potts, ¶ 82. Potts clings to the Court’s use of the term “costs” to argue that ODC cannot recover the costs of investigations and audits in this case. Potts contends that we “specifically limited” ODC to recover only “costs.” Potts conveniently ignores the very next sentence of Potts in which we direct ODC, pursuant to Rule 9(A)(8), MRLDE, to assemble and serve upon Potts “an itemized list of the costs and expenses incurred in this matter.” Potts, ¶ 82. ¶31 Moreover, Rule 9(A)(8), provides for the “[assessment of the cost of the proceedings, investigations and audits.” Rule 5(11), MRLDE, likewise directs ODC to assemble and serve on the disciplined lawyer “an itemized list of the costs of proceedings, investigations and audits” whenever “costs have been assessed against a lawyer by the Supreme Court.” (Emphasis added). It appears that the MRLDE opted for the more generic term “costs” when referring to the potential “[assessment of the cost of proceedings, investigations and audits” contained in Rule 9(A)(8). We assessed “costs” in Potts, ¶ 82, and these costs comprise the costs of the proceedings, investigations and audits. Rule 9(A)(8), MRLDE. ¶32 Potts contends nevertheless that our omission of the terms “investigations and audits” from our order in Potts represents the law of the case and precludes ODC from seeking to recover the expenses associated with these matters. Potts cites to Muri v. Frank, 2003 MT 316, ¶ 11, 318 Mont. 269, ¶ 11, 80 P.3d 77, ¶ 11, for the proposition that “a prior decision of this Court resolving an issue between the same parties is binding and may not be relitigated.” ¶33 The law of the case doctrine expresses the practice of courts generally to refuse to reopen matters already decided. Scott v. Scott, 283 Mont. 169, 175, 939 P.2d 998, 1001 (1987). The law of the case binds the parties, however, regarding only those issues that the Court previously has decided. In re Estate of Snyder, 2007 MT 146, ¶ 27, 337 Mont. 449, ¶ 27, 162 P.3d 87, ¶ 27. Potts’s law of the case argument thus relies upon his claim that we somehow elected to limit the matters for which ODC could recover to the “costs of the proceedings before the Commission.” Once again Potts seeks to limit the Court’s discretion in imposing the appropriate discipline and sanction in a manner not contemplated by Rule 9(A)(8), MRLDE. See also Rule 5(11), MRLDE. ¶34 Potts finally takes issue with the amount that ODC claims for travel expenses for the participating Commission members to the hearing in Helena on July 27 and 28, 2005. ODC requested $700.41 for these expenses, including mileage, food, and accommodations. Potts first claims that § 25-10-201, MCA, does not allow for such costs. He further argues that the Commission must have heard other matters during its time in Helena for Potts’s hearing. As a result, Potts suggests, without citing any particular authority, that it would be “neither fair nor proper to allocate such costs to this proceeding.” He suggests that the Commission’s expenses should be pro rated among the other lawyers who had their disciplinary proceeding before the Commission on those same days. ¶35 We quickly dispense with Potts’s claim that § 25-10-201, MCA, does not allow the Court to impose the Commission’s travel expenses as a discipline and sanction for Potts’s violation of various provisions of the MRPC. As we discussed previously, Rule 9, MRLDE, sets forth the available range of discipline and sanctions that the Court may impose in a lawyer disciplinary proceeding. Section 25-10-201, MCA, in no way limits or constrains the Court’s options in imposing discipline or sanctions pursuant to Rule 9, MRLDE. ¶36 We turn then to Potts’s dispute with the amount of the Commission's travel expenses sought by ODC. The record indicates that the following Commission members participated in Potts’s hearing: Chairman John Warren, Tracy Axelberg, Jan Brown, James F. Jacobsen, Carey E. Matovich, Arthur J. Noonan, and Mary Jo Ridgeway. All of the participating members, except for Commissioner Brown and Commissioner Jacobsen, live outside.Helena. The record further indicates that Potts’s hearing convened at 1:30 p.m. on July 27, 2005. The proceedings adjourned at 5:05 p.m. on that day. The Commission reconvened on July 28, 2005, at 9:00 a.m., and the hearing concluded at 4:10 p.m. ¶37 The participating Commission members would have needed lodging for the night of July 27, 2005. ODC seeks lodging expenses of $60 per night plus tax. The costs for the five non-Helena members would be $300 plus tax. All seven participating members would be entitled to food expenses for both days of the hearing. These food costs, at the rate of $23 per day, would be $322. The combined costs of lodging and food totals more than $622, which leaves less than $80 for mileage for the participating members at a rate of $0,445 per mile. Chairman Warren lives in Dillon, Commissioner Axelberg lives in Kalispell, Commissioner Matovich lives in Billings, Commissioner Noonan lives in Butte, and Commissioner Ridgeway lives in Miles City. Nothing in the MRLDE gives Potts the right to select Commission members only from the community in which the hearing will be held in order to defray costs. We deem Potts’s objections to these Commission travel expenses to border on frivolous and a waste of the Court’s time. ¶38 We further remind Potts’s counsel that M. R. Civ. P. 11, although not directly applicable to disciplinary proceedings, provides that a lawyer’s signature on a pleading constitutes a certification that the signer “has read the pleading, motion, or other paper; that to the best of the signer’s knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law.” The Court questions whether Potts’s challenge to the Commission’s travel expenses could pass this test. ORDER THEREFORE IT IS ORDERED: ¶39 1. Potts’s objection to ODC’s Statement of Costs as being untimely filed is DENIED; ¶40 2. Potts’s objection to ODC’s inclusion in its Statement of Costs of items not specifically enumerated in § 25-10-201, MCA, is DENIED; ¶41 3. Potts’s request pursuant to Rule 9(A)(8), MRLDE, for a hearing before an Adjudicatory Panel is GRANTED to the extent that the Adjudicatory Panel shall consider the reasonableness of the amount requested by ODC for each category. The Adjudicatory Panel shall not evaluate the propriety of each category requested by ODC as we have determined that issue in this Order and our determination on the merits constitutes the law of the case. Snyder, ¶ 27. ¶42 4. It is further ordered that ODC shall assemble and serve upon Steven T. Potts an updated itemized list of costs for consideration by the Court following the hearing before the Adjudicatory Panel. The updated itemized list of costs shall include the costs of the proceedings, investigations and audits incurred by ODC and its retained representatives in preparation for, and during, the hearing before the Adjudicatory Panel regarding Potts’s objections to ODC’s original Statement of Costs. Steven T. Potts shall then have 10 days thereafter to file written objections and, if he desires, to request a second hearing before an Adjudicatory Panel. ¶43 5. The Clerk of this Court is directed to mail copies of this Order to Steven T. Potts by certified mail, return receipt requested, and by ordinary mail to Steven T. Potts’s attorney, the Chairman and the Secretary of the Commission on Practice, the Office of Disciplinary Counsel, the Executive Director of the State Bar of Montana, and by electronic transmission to all Clerks of the District Courts of the State of Montana and to all District Judges. DATED this 18th day of September, 2007. /S/ BRIAN MORRIS /S/ JOHN WARNER /S/ JIM RICE /S/ JOHN C. McKEON, District Judge, sitting in place of CHIEF JUSTICE GRAY /S/ HOLLY BROWN, District Judge, sitting in place of JUSTICE COTTER /S/ JEFFREY M. SHERLOCK, District Judge, sitting in place of JUSTICE LEAPHART /S/ KURT KRUEGER, District Judge, sitting in place of JUSTICE NELSON
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JUSTICE MORRIS delivered the Opinion of the Court. ¶1 Dennis Druffel and Barbara Druffel (the Druffels) appeal from the order of the Fourth Judicial District, Missoula County, dismissing their petition for appeal. We reverse in part and affirm in part. ¶2 The Druffels present the following issues for review: ¶3 1. Whether the Druffels possess standing to appeal the Missoula City Board of Adjustment decision. ¶4 2. Whether the District Court properly dismissed the Druffels’ appeal for failure to state a claim. BACKGROUND AND PROCEDURAL FACTS ¶5 The Missoula City Board of Adjustment (the Board) granted a zoning variance to property owner Glen Moyer (Moyer) for his lot at 2702 Thames Street, Missoula. The variance allowed Moyer to build a residence on the 4,800-square-foot lot despite particular zoning restrictions that require a minimum lot size of 5,400 square feet to build a dwelling. ¶6 The Druffels live more than two blocks from Moyer’s property. They filed in District Court an application for writ of certiorari and petition to appeal the Board’s decision. The Druffels alleged that the Board’s variance approval constituted an abuse of discretion that violated the Druffels’ due process rights, Montana law, and Missoula City ordinances. The court issued the writ of certiorari and ordered the Board to submit certified transcripts of the record and proceedings surrounding the Board’s decision. ¶7 The Board submitted the certified copies and moved to dismiss the Druffels’ appeal under M. R. Civ. P. 12(b)(6) for failing to state a claim upon which relief can be granted. The Board argued that the Druffels lacked standing to pursue such an appeal based on the fact that the Druffels are not landowners involved in the Board’s decision or neighboring landowners. The Board also challenged the Druffels’ standing based on their failure to establish any specific harm or prejudice that would result from the Board’s grant of the variance. ¶8 The court granted the Board’s motion to dismiss. The court concluded that the Druffels lacked standing to appeal the Board’s decision based on the fact that the Druffels alleged no injury other than a deprivation “of their right to orderly development of property zoned as residential.” The court alternatively dismissed the Druffels’ appeal under M. R. Civ. P. 12(b)(6) for failure to state a claim upon which relief can be granted. The Druffels appeal. STANDARD OF REVIEW ¶9 A district court’s ruling on standing constitutes a conclusion of law. We review for correctness a district court’s conclusions of law. Sunburst School Dist. No. 2 v. Texaco, Inc., 2007 MT 183, ¶ 28, 338 Mont. 259, ¶ 28, 165 P.3d 1079, ¶ 28. We review de novo a district court’s ruling on a motion to dismiss for failure to state a claim under M. R. Civ. P. 12(b)(6). Guest v. McLaverty, 2006 MT 150, ¶ 2, 332 Mont. 421, ¶ 2, 138 P.3d 812, ¶ 2. DISCUSSION ¶ 10 Whether the Druffels possess standing to appeal the Missoula City Board of Adjustment decision. ¶11 The Druffels argue that the District Court improperly concluded that they lacked standing to challenge the Board’s decision. The Druffels maintain that they possess standing under § 76-2-327, MCA. This statute grants “any taxpayer” the right to petition a court of record to set forth alleged illegalities in the Board’s decision. Section 76-2-327(1), MCA. The Druffels point to Stewart v. Bd. of Cty. Com’rs of Big Horn Cty., 175 Mont. 197, 200, 573 P.2d 184, 186 (1977), in arguing this Court long has held that taxpayers possess standing to challenge “the legality of public acts” even when no specific statutory authority exists to maintain an action. The Druffels maintain that Stewart, coupled with the legislature’s express grant of taxpayer standing in § 76-2-327, MCA, confers standing upon them to appeal the Board’s decision. ¶12 The Board counters that the Druffels must allege some type of specific harm regardless of any statutory grant of standing in § 76-2-327, MCA. The Board cites to a number of cases, including Chovanak v. Matthews, 120 Mont. 520, 188 P.2d 582 (1948), Carbon County v. Schwend, 182 Mont. 89, 594 P.2d 1121 (1979), and Fleenor v. Darby School Dist., 2006 MT 31, 331 Mont. 124, 128 P.3d 1048, to support its position that taxpayers generally lack standing to enforce a public right or redress a public wrong absent an allegation of harm. The Board also relies on Stewart to contend that the Druffels, in order to have standing to sue a governmental entity, must “allege past, present or threatened injury to a property or civil right” that differs from an injury to the general public. Stewart, 175 Mont. at 201, 573 P.2d at 186. ¶13 None of the cases on which the Board relies entail actions brought under a specific statutory grant of standing. For instance, Chovanak concerns a taxpayer’s constitutional challenge to a statute. Chovanak, 130 Mont. at 522-23, 188 P.2d at 583. We held in Carbon County that an individual taxpayer cannot enforce a public right or redress a public injury by appeal where the taxpayer suffers only an injury common to all other taxpayers. Carbon County, 182 Mont. at 98-99, 594 P.2d at 1127. Fleenor involves a taxpayer’s action brought against a school district for an alleged violation of the right-to-know provision of the Montana Constitution. The taxpayer had failed to allege any injury in her complaint, let alone an injury unique to her, and thus we held that she lacked standing to challenge the school district’s action. Fleenor, ¶¶ 11-12. No statute authorized the taxpayer actions in Chovanak, Fleenor, and Carbon County. ¶14 Moreover, the Druffels, unlike the plaintiffs in Stewart, do not bring suit against a governmental entity. The Druffels instead request judicial review of the Board’s decision. We recognized in Stewart that the concept of standing arises from two different doctrines: first, discretionary doctrines intended to manage judicial review of the legality of public acts and, second, constitutional doctrines drawn from Article III of the United States Constitution. Stewart, 175 Mont. at 200, 573 P.2d at 186. ¶15 The United States Supreme Court explained in Sierra Club v. Morton, 405 U.S. 727, 731-32, 92 S. Ct. 1361, 1364-65 (1972), the requirements to meet standing under the judicial review doctrine. The Court determined that where Congress has authorized public officials to perform certain functions according to law, and has provided by statute for judicial review of those actions under certain circumstances, the inquiry as to standing must begin with a determination of whether the statute in question authorizes review at the behest of the plaintiff. Sierra Club, 405 U.S. at 732, 92 S. Ct. at 1364-65. The Court first examined the words of the particular statute under which the parties sought review. The Court then determined whether the party seeking review could be brought within the meaning of the statute by considering whether the party alleged sufficient facts to show a direct stake in the outcome. Sierra Club, 405 U.S. at 739, 92 S. Ct. at 1368. ¶16 No question exists here as to whether the Druffels fall within the meaning of the statute that grants parties the authority to petition for judicial review. Section 76-2-327(1), MCA, specifically authorizes “any person or persons, jointly or severally, aggrieved by any decision of the board of adjustment or any taxpayer or any officer, department, board, or bureau of the municipality” to petition a court of record to set forth allegations of illegality in the Board’s decision. (Emphasis added). We must construe statutes as written. Mont. for Justice v. State ex rel. McGrath, 2006 MT 277, ¶ 53, 334 Mont. 237, ¶ 53, 146 P.3d 759, ¶ 53. We neither insert that which has been omitted nor omit that which has been inserted. Section 1-2-101, MCA. “The plain language of the statute controls our interpretation if the legislative intent can be determined from the plain meaning of the words used.” Boettcher v. Montana Guar. Fund, 2007 MT 69, ¶ 19, 336 Mont. 393, ¶ 19, 154 P.3d 629, ¶ 19. ¶17 The plain meaning of § 76-2-327, MCA, reveals the legislature’s intent to grant two classes of parties the right to petition the district court concerning alleged illegalities in the Board’s decision. The statute first grants any persons, even those who do not qualify as taxpayers of the municipality, the right to petition for review of the Board’s decision if they have been aggrieved by such decision. Section 76-2-327(1), MCA. The statute also grants “any taxpayer or any officer, department, board, or bureau of the municipality” the right to petition for review. Section 76-2-327(1), MCA. (Emphasis added). The legislature, through the plain language of § 76-2-327, MCA, granted the Druffels standing, as taxpayers of the municipality, to petition for review of the Board’s decision. We reverse the court’s decision that the Druffels lacked standing to file a petition for judicial review under § 76-2-327. MCA. ¶18 Whether the District Court properly dismissed the Druffels’ appeal for failure to state a claim. ¶19 We address first the Druffels’ procedural argument that M. R. Civ. P. 12(b)(6) represents a “nonsensical claim” in an appeal to the district court. The Druffels point out that their claim involves an appeal, not a civil action to which the Montana Rules of Civil Procedure would apply. They assert that, even if the motion to dismiss constituted proper procedure, the Board waived its right to pursue such a motion under M. R. Civ. P. 12(b)(6) in light of the fact that the Board filed the motion after the court had issued the writ of certiorari. The Druffels argue that § 76-2-327, MCA, compels the court, upon issuing the writ of certiorari, to review the Board’s decision for an abuse of discretion. ¶20 The Montana Rules of Civil Procedure “do not supersede the provisions of statutes relating to appeals to or review by the district courts, but shall govern procedure and practice” relating to the appeal to the district court insofar as the rules of civil procedure are not inconsistent with such statutes. M. R. Civ. P. 81(b). The Druffels’ appeal made its way to the District Court by a writ of certiorari issued under § 76-2-327, MCA. Section 76-2-327, MCA, sets forth the specific procedures in the event of an appeal of the Board’s decision. ¶21 Section 76-2-327(2), MCA, requires the Board to submit to the court certified copies of the documents involved in the proceedings. The Board also may set forth “such other facts as may be pertinent and material” to the grounds of the decision from which the adverse party takes an appeal. Section 76-2-327(2), MCA. The statute further provides the court with discretion to take testimony and evidence as it deems necessary. ¶22 Nothing in M. R. Civ. P. 12(b)(6) conflicts with the procedures for review outlined in § 76-2-327, MCA. In fact, § 76-2-327(2) allows the Board the opportunity to raise “such other facts” concerning the appeal. The Board presented “such other facts” in the form of a motion to dismiss based on its allegations that the Druffels’ petition failed to meet the requirements for review allowed under § 76-2-327, MCA. We conclude that the District Court properly considered the Board’s motion to dismiss pursuant to M. R. Civ. P. 12(b)(6) in light of the fact that M. R. Civ. P. 12(b)(6) presents no inconsistency with § 76-2-327, MCA. M. R. Civ. P. 81(b). ¶23 We next consider whether the court correctly dismissed the Druffels’ appeal for failure to state a claim. The Druffels argue that the petition was “well pled” upon facts showing that the Board’s decision constituted an abuse of discretion. The Druffels contend that they met the statutory requirements for filing a petition by specifically setting forth alleged illegalities that may have flawed the Board’s decision. ¶24 A petitioner may challenge only the legality of the Board’s decision under § 76-2-327, MCA. The petitioner must file a verified petition “specifying the grounds of the illegality.” Section 76-2-327(1), MCA. In considering a motion to dismiss, we construe the complaint in the light most favorable to the plaintiff, taking all allegations of fact in the complaint as true. Hall v. State, 2006 MT 37, ¶ 10, 331 Mont. 171, ¶ 10, 130 P.3d 601, ¶ 10. We will affirm the district court’s dismissal if we conclude that the plaintiff would not be entitled to relief based on any set of facts that could be proven to support the claim. Guest, ¶ 2. ¶25 The Druffels’ petition alleges that the Board failed to place the burden of proof on Moyer to prove all of the elements for a variance as required by § 76-2-323, MCA, and Missoula City Ordinance § 19.84.020. The Druffels contend the Board wrongfully considered proof offered by the City of Missoula Office of Planning and Grants staff report. ¶26 Section 76-2-323, MCA, and Missoula City Zoning Ordinance § 19.84.020, set forth the powers of the Board to consider an appeal. Nothing in § 76-2-323, MCA, mentions burden of proof for the granting of a variance. Section 19.84.020 establishes that the appealing party must present sufficient evidence to establish a record. The provision does not preclude the Board, however, from considering the city’s staff report as part of such record. No set of facts could support the Druffels’ claim that the Board failed to enforce the burden of proof. ¶27 The Druffels also argue that the Board neglected its duty to consider whether Moyer must comply with a 20-foot setback requirement on his backyard under Missoula City Zoning Ordinances despite the variance granted on the lot size. The Druffels fail to recognize, however, that an exception to the setback requirement under Missoula City Zoning Ordinance § 19.04.220 applies to Moyer’s lot. Section 19.04.220 provides an exception to the 20-foot setback requirement for a backyard where the parcel is a corner lot and contains a front yard and a side yard. Moyer’s comer lot contains a front yard and a side yard and the Board properly determined that § 19.04.220 required no backyard under those circumstances. The Druffels’ petition fails to state a claim upon which relief can be granted even when taking all the allegations contained in the petition in the light most favorable to the Druffels. Hall, ¶ 10. ¶28 The Druffels next allege that the Board violated their constitutional due process rights by rendering its decision before the March 22, 2006, hearing on Moyer’s variance request. The record attached to the Druffels’ petition, however, shows that the Board granted approval of the variance at the March 22, 2006, hearing. No set of facts alleged in the Druffels’ petition supports their claim that Moyer’s variance had been granted before the hearing date. Guest, ¶ 2. CONCLUSION ¶29 We conclude that the District Court improperly determined that the Druffels lacked standing to pursue an appeal of the Board’s decision. Section 76-2-327, MCA, specifically conferred standing to the Druffels, as taxpayers of the municipality, to challenge the legality of the Board’s decision. We further conclude that the District Court properly dismissed the Druffels’ petition, however, pursuant to M. R. Civ. P. 12(b)(6), for failure to state a claim upon which relief could be granted. CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER and LEAPHART concur.
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CHIEF JUSTICE GRAY delivered the Opinion of the Court. ¶1 Carol Hagedorn (Carol), also known as Carol Konen, appeals from orders entered by the Twentieth Judicial District Court, Sanders County, denying motions which sought to amend a parenting plan by changing residential custody, and awarding David Clay (David) costs and attorney fees. We reverse and remand for further proceedings consistent with this Opinion. ¶2 The restated issues on appeal are: ¶3 1. Did the District Court err in determining the evidence was insufficient to establish a change in the children’s circumstances? ¶4 2. Did the District Court err in awarding costs and attorney fees to David? BACKGROUND ¶5 David and Carol both resided in Thompson Falls when the District Court entered a decree dissolving their marriage in July of 2004. The decree incorporated a stipulated parenting plan, pursuant to which David and Carol would parent their four minor children-ages 12, 10, 8 and 7-“on an equal basis, using a 2/2/3-day rotation,” with provisions for holidays and other special days. ¶6 In December of 2004, Carol filed notice of her intent to move to Poison the following summer, together with a proposed amended parenting plan including a proposed revised residential schedule, pursuant to § 40-4-217, MCA. She also moved for the appointment of a guardian ad litem. Carol characterized the existing parenting plan as “very difficult,” and expressed concern that David’s animosity toward her would increase in light of her move to Poison. Carol’s proposed amended parenting plan retained the parties’joint authority and responsibility for the children, but proposed that the children would reside primarily with Carol and stay with David every other weekend, with other provisions for holidays and the like. ¶7 David opposed Carol’s proposed amended parenting plan and motion for appointment of a guardian ad litem. He timely filed his own proposed amended parenting plan including a proposed revised residential schedule, as required by § 40-4-217, MCA. David proposed the children primarily reside with him and stay with Carol on alternating weekends during school years, and alternate every two weeks between the parents’ residences during summers, with additional provisions for holidays and the like. ¶8 The District Court held a hearing in February of2005. After Carol presented her evidence and testimony-and before David presented his case-the court ruled from the bench that insufficient evidence supported changing the parenting plan. The court acknowledged Carol’s right to move, but expressed concern about reducing David’s parenting time, especially since a mediator assisted with the stipulated parenting plan in June of 2004. The court requested the parties to discuss whether they could reduce their conflicts without assistance from a guardian ad litem. ¶9 Shortly thereafter, the District Court entered its order denying both parties’ proposed amended parenting plans. It reiterated its oral ruling that the evidence was insufficient, and stated it would not reduce David’s parenting time or “change the children’s circumstances” because Carol desired to move. The District Court took Carol’s motion for appointment of a guardian ad litem -under advisement. ¶10 In July, Carol filed notice of her change of address to a Poison post office box, and renewed her motion for appointment of a guardian ad litem. David responded. ¶11 Later that month, the District Court appointed Nancy Combs as guardian ad litem to secure recommendations for resolution of the parties’ problems with the parenting plan, implement visitation, and initially establish workable guidelines and schedules for visits. The court noted its previous rejection of the proposed amended parenting plans and the reasons therefor. ¶12 Combs first reported the parties’ agreement to a temporary parenting schedule of alternating weeks, with the children continuing school in Thompson Falls and having Monday evening visits with the off-week parent. She also requested additional time to investigate the reasons underlying the three youngest children’s wishes to stay with Carol. In her second report, Combs recommended that the oldest child reside primarily with David, with visits to Carol every other weekend, and that the three younger children reside primarily with Carol, with visits to David every other weekend. David objected to Combs’ recommendations and moved to strike portions of her second report. Carol responded, requesting that the court adopt Combs’ recommendations. ¶13 The District Court entered its second order denying proposed changes to the parenting plan in November of 2005, reiterating its earlier reasoning and characterizing its appointment of Combs as an effort to facilitate a mutual resolution. The court reasoned Combs’ recommendations “would have resulted in a change of living arrangements but cite no substantial change in circumstances not considered by the Court at the time of the Court’s previous order.” On that basis, the court concluded it lacked authority to modify the parenting plan. ¶14 Carol moved the District Court to alter its November order and adopt Combs’ recommendations. David responded, and moved for costs and attorney fees based on both a provision in the parenting plan and § 40-4-110, MCA. The District Court denied Carol’s motion and granted David’s motion. Carol appeals. STANDARD OF REVIEW ¶15 We recently clarified that a district court’s assessment of the sufficiency of the evidence is a question of law which we review de novo, regardless of the context of the court’s determination, because evidence is legally sufficient under applicable rules or it is not. See Giambra v. Kelsey, 2007 MT 158, ¶¶ 26-27, 338 Mont. 19, ¶¶ 26-27, 162 P.3d 134, ¶¶ 26-27; State v. Swann, 2007 MT 126, ¶¶ 18-19, 337 Mont. 326, ¶¶ 18-19, 160 P.3d 511, ¶¶ 18-19; Johnson v. Costco Wholesale, 2007 MT 43, ¶¶ 18-19, 336 Mont. 105, ¶¶ 18-19, 152 P.3d 727, ¶¶ 18-19. Thus, we review the District Court’s legal conclusion that the evidence was insufficient to establish a change of circumstances to determine whether it is correct. DISCUSSION ¶16 1. Did the District Court err in determining the evidence was insufficient to establish a change in the children’s circumstances? ¶17 Section 40-4-219(1), MCA, provides, in pertinent part, that a court may amend a prior parenting plan if it finds, upon the basis of facts that have arisen since the prior plan, that a change has occurred in the circumstances of the child and amendment is necessary to serve the child’s best interests. The District Court made no findings regarding any facts arising since the stipulated parenting plan and dissolution decree. It concluded the evidence was insufficient to establish that the children’s circumstances had changed and, as a result, it lacked authority under § 40-4-219(1), MCA, to proceed further. ¶18 On appeal, Carol contends her move to Poison subsequent to the stipulated and incorporated 2/2/3-day parenting plan resulted in changed circumstances for the children. David asserts Carol’s decision to move need not affect the children’s circumstances. ¶19 Both parties advance parenting plan cases, some of which address prior versions of § 40-4-219(1), MCA, which differ from the version applicable here. None of the advanced cases addresses a district court’s legal conclusion that evidence was insufficient to establish a change in the child’s circumstances. ¶20 In any event, as set forth above, we review a court’s conclusion regarding the sufficiency of the evidence for correctness. See Giambra, ¶¶ 26-27. Stated in the context of this case, the issue is whether the District Court erred in concluding insufficient evidence based on post-dissolution facts established a change in the children’s circumstances. Thus, we turn to the record before us. ¶21 At the time of the stipulated 2/2/3-day parenting plan and dissolution decree in 2004, Carol and David lived within five miles of each other in Thompson Falls. In Carol’s pre-hearing affidavit, she referred to her intended move to Poison, and asserted the parenting plan was difficult and the two boys were having a difficult time with the transitions between the Thompson Falls households. David responded via an affidavit maintaining the children had-with the assistance of a counselor-made progress in adjusting to the 2/2/3-day parenting plan, and asserting Carol’s intended move would “disrupt” that progress and would make it impossible for both parents to have frequent and continuous contact with the children. He farther asserted his proposed parenting plan-which provided that the children would primarily reside with him in Thompson Falls-would allow the children to stay in a familiar home, community and environment with their close friends, family members, teachers and other people that had been part of their lives. ¶22 At the February 2005 hearing, Carol’s attorney asked how the 2/2/3-day rotation had been working for the children, and Carol responded “[h]orrible.” Carol further testified the oldest child was having academic and other difficulties, and she felt she could not give him needed structure and discipline every two days. Carol also related that her older daughter was regularly taking her clothing to David’s in grocery bags rather than wearing the clothes kept for her at David’s house, and Carol needed to “coax[j” her to go to David’s and assure her that she would return to Carol’s. In addition, Carol testified that she felt the transitions in the 2/2/3-day rotation were upsetting the children’s routines, because she had trouble getting them to bed and “it sounds like they’re toddlers, but they don’t sleep well.” Carol testified she believed Poison provided more opportunities for the children than Thompson Falls, the children were excited about the move and they did not have needed stability during their week under the existing plan. David did not testify at the February 2005 hearing because, as mentioned above, the District Court ruled after Carol rested her case and before David presented his. ¶23 The District Court ruled from the bench that the evidence was insufficient that the children’s circumstances had changed due to Carol’s intended move. The court also stated its concern about “the difficulty of the transfer back and forth and how often that’s taking place” and expressed willingness to consider a stipulation by the parties to adjust portions of the parenting plan. ¶24 We note the District Court was technically correct about the lack of a change in the children’s circumstances at the time of the hearing in February of 2005, insofar as Carol’s intended move had not yet occurred. However, since 1997, § 40-4-217, MCA, has required a parent who intends to change residence in a manner that will significantly affect the child’s contact with the other parent to submit a proposed revised residential schedule. Read together, §§ 40-4-217 and -219(1), MCA, clearly contemplate that parties and district courts exercise foresight in relation to proposed amended parenting plans with proposed revised residential schedules. Here, the District Court persisted in its ruling after Carol’s move and Combs’ reports. ¶25 The record since the February 2005 hearing reflects that Carol has moved, and the children travel approximately 90 miles each way between Poison and Thompson Falls to transfer between households and to attend school in Thompson Falls when staying with Carol in Poison. In addition, Carol has established a household with her current spouse and his four children, and she was expecting another baby after the February 2005 hearing. Combs also reported that David intended to move in with his current significant other, who also has children. When the 2/2/3-day rotation was implemented, the children were not driving 90 miles per day to go to school or between households, and they were not living with any other children or adults. ¶26 We hold the evidence of record in the present case establishes as a matter of law that, based on facts which arose since the original 2/2/3-day parenting plan, a change in the children’s circumstances occurred. Consequently, we also hold the District Court erred in concluding otherwise. Thus, we remand for the District Court’s determinations of whether an amendment to the parenting plan is in the best interest of the children and, ultimately, whether and how it should amend the parenting plan. ¶27 Because the District Court’s decisions on remand will necessarily factor into a subsequent decision on whether to award attorney fees, we vacate the District Court’s award of attorney fees and costs to David. ¶28 Reversed and remanded for further proceedings consistent with this Opinion. JUSTICES NELSON, COTTER and MORRIS concur.
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JUSTICE MORRIS delivered the Opinion of the Court. ¶1 Lawrence Roedel (Roedel) appeals his conviction in the Eleventh Judicial District, Flathead County, for deliberate homicide in violation of § 45-5-102(1), MCA. He also appeals the District Court’s decision to admit a tape recording at his sentencing hearing. We affirm. ¶2 We review the following issues on appeal: ¶3 Does Roedel present a record-based claim of ineffective assistance of counsel regarding his counsel’s failure during voir dire to challenge a juror for cause and to move to strike the venire ? ¶4 DidRoedel’s counsel provide ineffective assistance during voir dire by discussing a newspaper article that referred to his counsel as a “liar?” ¶5 Did Roedel’s counsel provide ineffective assistance by failing to object to certain testimony? ¶6 Did the jury have sufficient evidence to convict Roedel? ¶7 Did the District Court violate Roedel’s right to be present at all critical stages when it did not require Roedel’s presence or an express waiver of his presence during the settling of the jury instructions? ¶8 Did the District Court err in allowing the State to play a tape recording at the sentencing hearing without first giving Roedel an opportunity to review it? FACTUAL AND PROCEDURAL BACKGROUND ¶9 Roedel called the Lake County Sheriffs Office 911 dispatch at 11:03 p.m. on August 27, 2005. Roedel told the dispatcher, “I think I just shot my wife.” Roedel gave his address and pleaded with the dispatcher to get someone quickly to his house. Roedel stated that his wife, Dawn Thompson (Dawn), had come into his room pointing a .357 magnum at his face. He claimed that they were wrestling over the gun when it went off. ¶10 Roedel pounded on the bedroom door of his fifteen year old daughter, Emily Thompson (Emily), while he spoke with the 911 dispatcher. Emily unlocked her door to find her father “freaking out.” Roedel repeated “Oh my God, I think she’s dead,” as he led Emily to her mother. Emily checked Dawn for a pulse and attempted to perform CPR. Emily then spoke with the 911 dispatcher and gave instructions to help officers find the Roedel residence. Emily got off the phone and began flashing the porch light on and off to guide the Sheriffs deputies to the house. Roedel stood in the doorway of the house waving his arms while Emily flashed the porch light. ¶11 Deputy Mike Carlson arrived at the house at 11:20 p.m. Deputy Carlson found Roedel crying, shirtless, and wearing pajama type pants. Deputy Carlson asked Roedel for the location of the gun, and Roedel stated that he did not remember. ¶12 Roedel led Deputy Carlson through the house and into the garage. Deputy Carlson detected a strong odor of gunpowder upon entering the garage. Roedel directed Deputy Carlson to the stairway at the end of the garage. The stairway rose from the garage floor to a small landing, made a ninety degree turn, and followed the back wall of the garage up to a bedroom. Dawn’s body lay on the bottom two stairs. Deputy Carlson checked Dawn and found no pulse. ¶13 Roedel told Deputy Carlson that he and Dawn had argued that evening. Roedel stated that he shot Dawn in the back as she descended the stairs. Deputy Carlson again asked Roedel if he knew the location of the gun. Roedel pointed up the stairs and said “it’s up there.” Deputy Carlson climbed the stairs and looked into the bedroom. He saw a handgun lying on the bed. Deputy Carlson discovered three bullet holes in the wall above the landing in the middle of the stairs. ¶14 The State charged Roedel with deliberate homicide in violation of § 45-5-102(1), MCA. Roedel pled not guilty and the case proceeded to a jury trial. Roedel’s counsel identified a potential juror, Rod Meyers (Meyers), as an employee of the Sheriffs office during voir dire. Roedel’s counsel asked Meyers if he could remain impartial despite hearing discussions of Roedel’s case at work. Meyers initially stated that he had a feeling of Roedel’s guilt based on the officers involved in the case. Meyers subsequently stated that he thought he could be fair and would listen only to the evidence presented at trial. He agreed that the State would have to prove Roedel’s guilt and that he could vote not guilty and still return to his work. Roedel’s counsel did not seek to remove Meyers for cause. Roedel’s counsel ultimately removed Meyers with a peremptory challenge. ¶15 Roedel’s counsel asked during voir dire if any panel member had read any material regarding his involvement in the investigations of death penalty cases in California. Roedel’s counsel formerly had served as a prosecutor in Alameda County, California, and the investigation concerned his former office’s practices in selecting juries for death penalty cases. One panel member indicated that a local paper had published a story concerning Roedel’s counsel. ¶16 Roedel’s counsel described the basis of the story and stated, “and they called me a liar, and I’m going, well, that’s a great deal.” This statement prompted a panel member to state, “So tell me your side.” Roedel’s counsel then gave his account of the story. He stated, “[a]nd I promised to tell the truth, and yeah, we really did it. And everybody got all upset.” Roedel’s counsel finished by saying, “[m]an, I wish I hadn’t said anything, but there you go.” ¶17 The State presented two ofRoedel’s neighbors as witnesses. Karen Kliev (Karen) and her husband, Ray Kliev (Ray), live on the property adjacent to Roedel to the north. The Klievs own the Ferndale Market that sits to the south, on the other side of the Roedel residence. The Klievs testified at trial that they had closed up the Ferndale Market at approximately 10:30 p.m. on the night of the shooting. The Klievs both testified to returning home and assuming their nightly ritual of making tea and watching television. ¶18 The Klievs opened the windows and doors of their house that evening to let in a cool breeze after a warm August day. Ray testified that he opened the French doors off the living room that night. The doors point south toward Roedel’s residence. Karen testified that she heard three shots in succession as she and Ray were entering their living room. She testified that immediately on hearing the shots she looked at the clock and noted the time as exactly 11:00 p.m. She described the report of the shots as “bang, bang, bang.” ¶19 Ray also heard the shots. Ray told his wife that the shots sounded as though they came from a high-powered handgun. He testified to hearing three shots, each sounding approximately one second apart. Ray testified that he had some familiarity with firearms and felt that a handgun definitely had been fired. Ray testified that the report of the gunshots came from the direction of the Roedel residence. He also testified that he recalled their living room clock displaying a time of a few minutes before 11:00 p.m. ¶20 Two other witnesses testified at the trial concerning the gunshots. Barbara Slowik (Slowik) testified that she heard two “pops” at 11:00 p.m. on the night of the shooting. She testified that she and her husband had the television on and were nodding off to sleep when the first “pop” stirred her. Slowik nudged her husband, who was sleeping, and asked him if he had heard the noise. He asked if the noise came from the television. She replied that the noise had not come from the television. Slowik testified that she then heard a second “pop.” She testified that she did not hear a third popping noise. ¶21 John Nelson (Nelson) also testified to hearing gunshots on the night of the shooting. Nelson lives in an apartment on the property adjacent to Roedel’s residence to the south. Nelson testified that something woke him from sleep around 11:00 p.m. Nelson testified to having familiarity with firearms and stated that he felt the gunshots came from a small caliber handgun. He testified to hearing two shots. Nelson testified that he was not sure he had heard three gunshots. He testified that he may have awakened due to a gunshot and then heard two more. He testified that approximately ten to thirty seconds elapsed between the gunshot reports that he heard. ¶22 Detective Jeanne Landis investigated Dawn’s homicide. Detective Landis testified that she arrived at Roedel’s residence at 12:14 a.m. and spoke with Roedel. Roedel told Detective Landis, “we were fighting over the gun, it went off, and I shot her in the back.” Detective Landis testified that she found the gun used in the shooting on Roedel’s bed, with the hammer cocked. Detective Landis found three live cartridges and three spent cartridges in the gun’s cylinder. The cocked hammer sat poised to fall on a live round. Detective Landis testified that the State Crime Lab recovered no prints from the weapon. ¶23 Roedel told Detective Landis that he kept the gun in the top drawer of the desk next to his bed. Detective Landis found a box of shells in this drawer matching the caliber and manufacturer of the cartridges present in the revolver. The box had six empty slots. ¶24 Detective Landis testified that she observed the three bullet holes in the wall above the landing in the middle of the stairs. Two of the holes revealed that a bullet had passed cleanly through the drywall. Detective Landis testified that the bullet causing the third hole had tumbled before striking the wall. She explained that a bullet tumbles once it strikes and passes through an object. The tumbling bullet remained imbedded in the wall. The State Crime Lab recovered no blood or tissue evidence from the bullet. ¶25 Detective Landis conducted several transcribed follow-up interviews with Roedel at his request. Detective Landis testified that Roedel stated in his initial interview that Dawn had fired the first two shots. She testified that Roedel changed his story and later stated that he had fired the first shot. Detective Landis testified that Roedel subsequently admitted to firing the gun all three times. ¶26 Travis Spinder (Spinder), a firearm and tool mark examiner employed at the State Crime Lab, testified concerning the weapon. Spinder testified that Roedel fired a .357 magnum when he killed Dawn. Spinder testified that the weapon cannot fire unless something pulls the trigger. He testified that the weapon cannot discharge even if someone drops the weapon with the hammer cocked. ¶27 Dr. Gary Dale testified concerning Dawn’s injuries and cause of death. Dr. Dale testified that the bullet that killed Dawn had caused extensive damage as it passed through her body. The bullet entered the back of Dawn’s right shoulder, damaged two ribs, and pierced the back of her right lung. The bullet traveled through and damaged two thoracic vertebrae, passed through Dawn’s left lung, and grazed her diaphragm, stomach, and spleen before exiting her body. Dr. Dale opined that bleeding into the cavities surrounding Dawn’s lungs likely had caused her death. He estimated that it took a few minutes for Dawn to die. ¶28 Roedel called Ann Harris (Harris), a forensic chemist with the State Crime Lab, to testify concerning gunshot residue. Harris testified that she found more particles of likely gunshot residue on Dawn’s hands than she found on Roedel’s. She stated on cross-examination, however, that she could not draw any conclusions from this disparity regarding who had fired the gun. Harris testified that she could not state that a person had fired a weapon simply from the presence of gunshot residue. She testified that ordinary activities, such as putting hands in pockets or running hands through hair, might remove the residue. Harris stated, “So I’m not surprised that if he had fired the gun that he wouldn’t have much [gunshot residue] on him.” ¶29 The District Court excused the jury at the close of the evidence. The District Court conducted the subsequent proceedings on the record, with Roedel initially present. The District Court asked Roedel’s counsel if he wanted Roedel present during the settling of instructions. Roedel’s counsel responded “No.” The District Court told Roedel “You can stay for instructions or you can not stay.” Roedel stated, “Okay. We’re done, then?” and departed in the custody of the Sheriffs office. The District Court proceeded to conduct the settling of jury instructions. ¶30 The jury commenced deliberations at 11:39 a.m. on April 6,2006. The jury returned at 1:30 p.m. that same day with a verdict. The jury convicted Roedel of deliberate homicide and knowingly using a firearm while committing that offense. ¶31 The District Court conducted a sentencing hearing on May 11, 2006. Roedel testified. The State asked Roedel if he was “quick to anger” and “quick to threaten people.” Roedel denied having such a temperament. The State then questioned Roedel about a past incident in which he allegedly had kissed a thirteen year old girl. The State asked Roedel how he had responded to the allegation to demonstrate that Roedel had a volatile temper. Roedel stated that he had challenged the man who accused him of the inappropriate kiss to a fight. Roedel stated that he did not remember how he had reacted to the officer who spoke with him on the phone. ¶32 The State presented Detective Landis at the sentencing hearing for rebuttal. Detective Landis testified that Roedel had reacted angrily when asked by an officer if he inappropriately had kissed a thirteen year old girl. The State then directed Detective Landis to play a tape recording of Roedel’s conversation with the officer. Roedel objected on the grounds that the State had not given him a copy of the tape before the hearing. The State responded that it initially had not intended to play the tape. The District Court allowed the State to play the tape. ¶33 The tape records Roedel angrily uttering a stream of profanity and threats aimed at officers and another man. Roedel requested a short recess upon the tape’s conclusion. The District Court allowed a fifteen minute recess. Following the recess, Roedel declined the District Court’s offer to cross-examine Detective Landis. Roedel also declined the District Court’s offer to rebut the tape recording. ¶34 The District Court proceeded to hear the parties’ arguments and recommendations for sentencing. The District Court sentenced Roedel to eighty years at the Montana State Prison, with ten years added for use of a weapon. Roedel appeals. STANDARD OF REVIEW ¶35 We review de novo claims of ineffective assistance of counsel, as they present mixed questions of law and fact. State v. Herrman, 2003 MT 149, ¶ 18, 316 Mont. 198, ¶ 18, 70 P.3d 738, ¶ 18. We review the sufficiency of the evidence to support a jury verdict of guilty to determine whether any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt when viewing the evidence in the light most favorable to the prosecution. State v. Rennaker, 2007 MT 10, ¶ 16, 335 Mont. 274, ¶ 16, 150 P.3d 960, ¶ 16. We will not disturb a jury’s determination with regard to disputed questions of fa<jt and credibility. Rennaker, ¶ 16. We employ a plenary review to determine whether a violation of a criminal defendant’s right to be present at all critical stages of his trial has occurred. State v. Kennedy, 2004 MT 53, ¶ 13, 320 Mont. 161, ¶ 13, 85 P.3d 1279, ¶ 13. We review a district court’s determination of the admissibility of evidence for abuse of discretion. State v. Nelson, 2002 MT 122, ¶ 9, 310 Mont. 71, ¶ 9, 48 P.3d 739, ¶ 9. DISCUSSION ISSUE ONE ¶36 Does Roedel present a record-based claim of ineffective assistance of counsel regarding his counsel’s failure during voir dire to challenge a juror for cause and to move to strike the venire ? ¶37 Roedel claims that he received ineffective assistance of counsel when his counsel did not challenge Meyers for cause. He argues that his counsel’s failure to move to strike the entire venire due to Meyers’s statement regarding discussions of Roedel’s case within the Sheriffs office also constituted ineffective assistance. ¶38 We will not review all claims of ineffective assistance of counsel on direct appeal. A defendant claiming ineffective assistance of counsel more appropriately makes his claims in a petition for post-conviction relief when the record does not provide the basis for the challenged acts or omissions. Herrman, ¶ 33. Direct appeal serves as the proper forum for determining ineffective assistance of counsel when appellants assert claims on record-based actions, untaken obligatory actions, or implausible actions. State v. Kougl, 2004 MT 243, ¶¶ 14-15, 323 Mont. 6, ¶¶ 14-15, 97 P.3d 1095, ¶¶ 14-15. We have recognized the flaw in attempting to determine the presence of tactical reasoning behind omissions or inactions of trial counsel from a cold trial record. Herrman, ¶¶ 28-30; State v. Racz, 2007 MT 244, ¶¶ 27-29, 339 Mont. 218, ¶¶ 27-29, 168 P.3d 685, ¶¶ 27-29. ¶39 The record is silent as to why Roedel’s counsel declined to challenge Meyer for cause or to move to strike the entire venire. Roedel also fails to demonstrate that no plausible justification exists for his counsel’s alleged failure to take either action. We cannot evaluate Roedel’s claims of ineffective assistance of counsel based solely on the trial record. ISSUE TWO ¶40 Did Roedels counsel provide ineffective assistance during voir dire by discussing a newspaper article that referred to his counsel as a “liar?” ¶41 Roedel argues that his counsel unnecessarily called into question his counsel’s credibility when he discussed a newspaper article that referred to his counsel as a “liar.” Roedel asserts that in saying, “[m]an, I wish I hadn’t said anything ...,” his counsel demonstrated that no plausible justification existed for referencing the article. Roedel claims that his counsel’s reference to the article deprived him of the right to a fair and impartial trial. ¶42 We review those claims of ineffective assistance of counsel suitable for review in a direct appeal by applying the test set forth in Strickland v. Washington, 466 U.S. 668, 687, 104 S. Ct. 2052, 2064 (1984). A defendant must establish that counsel’s performance fell below an objectively reasonable standard, and that a reasonable likelihood exists that a different outcome would have resulted but for counsel’s actions. Kougl, ¶ 11. The defendant must overcome the strong presumption that counsel’s actions met the reasonable standard, and counsel has a great deal of discretion in deciding which tactics to employ on behalf of the defendant. Kougl, ¶ 11. ¶43 Roedel’s counsel first asked if any panel member had read any of the material regarding the death penalty investigation in California. One panel member indicated that she had read a story in a local paper that had mentioned Roedel’s counsel. Roedel’s counsel described his involvement and stated, “and they called me a liar, and I’m going, well, that’s a great deal.” The panel member who read the article asked Roedel’s counsel to tell his side of the story. Roedel’s counsel then gave his account of the story and stated, “[a]nd I promised to tell the truth, and yeah, we really did it.” He asserted that he had told the truth about his office’s disreputable practices. ¶44 The interchange between Roedel’s counsel and the jury panel reveals that he used the story to demonstrate his willingness to tell the truth in the face of bad publicity and negative consequences. The tactical reasoning behind his counsel’s decision to refer to the article appears from the context of the trial court record. We conclude that Roedel’s counsel made a calculated decision to discuss the article in order to respond to its assertion that he was a “liar,” notwithstanding his final statement of regret at having mentioned the investigation. We further conclude that this decision did not constitute ineffective assistance of counsel. ISSUE THREE ¶45 Did Roedel’s counsel provide ineffective assistance by failing to object to certain testimony ? ¶46 Roedel also claims that he received ineffective assistance of counsel when his counsel did not object to testimony from Harris. Roedel called Harris to testify as an expert on gun powder residue. He contends that Harris implied that Roedel had been the shooter when she stated that she could make no conclusion as to whom had fired the weapon. Roedel asserts that his counsel’s failure to object to her testimony constituted ineffective assistance. ¶47 Roedel must overcome a strong presumption that counsel performed effectively and show both (1) that counsel's performance fell below an objectively reasonable standard, and (2) that a different outcome would have resulted but for counsel’s actions. Kougl, ¶ 11. Roedel fails to demonstrate that his counsel’s performance fell below an objectively reasonable standard. ¶48 Harris explicitly stated that she did not draw any conclusions from the differing amounts of gunshot residue present on Dawn’s and Roedel’s hands. Harris explained how regular mannerisms might remove gunshot residue from a person’s hands. Harris testified that she could not make a conclusion that anyone, including Roedel, had shot the weapon because of the possibility of removing residue through normal activities. Contrary to Roedel’s assertion, Harris’s testimony did not imply that Roedel had fired the weapon. Harris simply explained why she could not conclude that any particular person had fired the gun. ¶49 Even asstuning, for sake of argument, that Harris implied that Roedel had fired the weapon, this point fails to establish that Roedel’s counsel provided ineffective assistance. Roedel does not argue that his counsel should have objected in order to establish that Dawn fired the gun. Roedel instead faults his counsel only for not objecting to an alleged implication that Roedel had fired the gun. ¶50 The uncontroverted testimony at trial revealed, however, that Roedel had fired the weapon. Roedel admitted on several occasions during the investigation that he had fired the shot that killed Dawn. He contested only whether he had shot Dawn purposely or knowingly. The grounds offered in support of the unmade objection fail to establish error on the part of Roedel’s counsel due to Roedel’s admission. Though Harris could not conclude that Roedel had fired the gun based on gunshot residue, the State put forth other witnesses who did reach that conclusion based upon Roedel’s admissions. No reason existed for Roedel’s counsel to object to Harris’s testimony for the purpose of preventing the jury from hearing the alleged implication that Roedel had fired the gun. The record reveals that Roedel’s counsel provided assistance that met an objectively reasonable standard. ISSUE FOUR ¶51 Did the jury have sufficient evidence to convict Roedel? ¶52 Roedel argues that the State did not put forth sufficient evidence to establish that he purposely or knowingly caused Dawn’s death. Montana law provides that a person commits deliberate homicide if the person purposely or knowingly causes the death of another human being. Section 45-5-102(1)(a), MCA. A person acts purposely if it is the person’s conscious object to cause a result. Section 45-2-101(65), MCA. A person acts knowingly with regard to a result when that person is aware that it is highly probable that the person’s conduct will cause that result. Section 45-2-101(35), MCA. ¶53 The State presented evidence that someone fired three shots on August 27,2005, at Roedel’s residence. Witnesses testified hearing the gunshots at 11:00 p.m. Roedel phoned 911 dispatch at 11:03 p.m. Dr. Dale testified that Dawn died from injuries caused by a gunshot, and that she likely survived for several minutes after sustaining her injuries. ¶54 Roedel admitted nearly from the outset of the investigation to having fired the shot that killed Dawn. He initially claimed that Dawn had fired the gun twice before his alleged accidental firing of the gun. Roedel later contradicted this account of events. Roedel then admitted on multiple occasions to firing all three shots. ¶55 Roedel’s neighbors testified that they heard three shots fired in quick succession. A firearms expert testified that the gun used in the shooting was incapable of discharging unless something pulled the trigger. Detective Landis found the gun lying on the bed with the hammer cocked, ready to fall on a live round. Detective Landis discovered three spent cartridges and three live rounds in the gun. ¶56 This Court reviews the jury’s determinations of fact in the light most favorable to the prosecution. Rennaker, ¶ 16. Though witnesses provided slightly differing accounts regarding certain aspects of the events that night, this Court will not disturb the jury’s determinations on these matters. Rennaker, ¶ 16. We conclude that the State presented sufficient evidence to allow the jury to find that Roedel acted purposely or knowingly in causing Dawn’s death. ISSUE FIVE ¶57 Did the District Court violate Roedel’s right to he present at all critical stages when it did not require Roedel’s presence or an express waiver of his presence during the settling of the jury instructions ? ¶58 Roedel claims that the District Court violated his right to appear and defend in person by allowing him to leave during the settling of jury instructions without obtaining his express and informed waiver. He argues that the District Court’s failure to obtain his express waiver constituted structural error and requires reversal of his conviction. ¶59 A defendant has a constitutional right to appear and defend a criminal prosecution in person. Mont. Const. art. II, § 24. We have held that the right to appear and defend in person constitutes a fundamental right that a defendant can waive only through a voluntary, intelligent, and knowing waiver. State v. Tapson, 2001 MT 292, ¶¶ 15, 28, 307 Mont. 428, ¶¶ 15, 28, 41 P.3d 305, ¶¶ 15, 28. We have determined that a defendant’s fundamental right to be present at the proceedings applies without exception only to those stages deemed critical. Tapson, ¶ 37; State v. Riggs, 2005 MT 124, ¶¶ 51-52, 327 Mont. 196, ¶¶ 51-52, 113 P.3d 281, ¶¶ 51-52. ¶60 This Court has not faced the question of whether the settling of jury instructions constitutes a critical stage of the proceedings for purposes of the right to be present. We note, however, that the legislature has spoken on the necessity of the defendant’s presence at this stage of the proceedings. Section 46-16-410(4), MCA, specifically allows for the absence of the defendant during the settling of jury instructions. Roedel does not challenge the statute’s constitutionality. Accordingly, we will not address whether § 46-16-410(4), MCA, impermissibly relieves a court of the obligation to obtain an express waiver of a defendant’s presence from the settling of jury instructions. See e.g. Silvestrone v. Park County, 2007 MT 261, ¶ 16, 339 Mont. 299, ¶ 16, 170 P.3d 950, ¶ 16. ¶61 The District Court asked Roedel’s counsel if he wanted Roedel present during the settling of instructions. Roedel’s counsel responded “No.” The District Court then told Roedel “You can stay for instructions or you can not stay.” Roedel stated “Okay. We’re done, then?” and returned to the custody of the Sheriffs office. The District Court proceeded on the record to settle the jury instructions. ¶62 Section 46-16-410(4), MCA, specifically allows for the defendant’s absence from the settling of jury instructions. The statute makes no mention of the need for the court to obtain the defendant’s voluntary, intelligent, and knowing waiver. The court offered Roedel the chance to be present for the settling of the jury instructions. Roedel declined. The statute requires nothing more. We conclude that the District Court’s actions did not constitute structural error. ISSUE SIX ¶63 Did the District Court err in allowing the State to play a tape recording at the sentencing hearing without first giving Roedel an opportunity to review it? ¶64 Roedel faults the District Court for listening to the tape recording of his profanity laden rant during the sentencing hearing. Roedel asserts that the District Court denied him the opportunity to prepare properly for, and respond to, the tape by allowing the State to play the tape without giving him time in advance to listen to its contents. He argues that this decision violated his right to have the District Court sentence him on the fullest information possible. ¶65 The rules of evidence do not control in sentencing hearings. State v. Ferguson, 2005 MT 343, ¶ 109, 330 Mont. 103, ¶ 109, 126 P.3d 463, ¶ 109. The rules of evidence do not apply in order to provide a sentencing court with access to the fullest information possible concerning a defendant’s life and character. Ferguson, ¶ 109. The right to due process, however, requires a sentencing court to provide the defendant with an opportunity to explain, argue, and rebut any information that may lead to a deprivation of life or liberty. State v. Winkle, 2002 MT 312, ¶ 14, 313 Mont. 111, ¶ 14, 60 P.3d 465, ¶ 14. ¶66 The State presented several letters at the sentencing hearing in Winkle without providing the defense a copy of the last letter in advance. Winkle, ¶ 6. The letters asserted that Winkle had been violating a condition of his release. Winkle, ¶ 5. Winkle denied the common assertion in the letters, but indicated that he did not want to offer rebuttal. Winkle, ¶ 7. Winkle asked the court to proceed to sentencing. Winkle, ¶ 7. Winkle moved for a continuance after the oral imposition of his sentence. Winkle, ¶ 11. He claimed that the introduction of the final letter had violated his right to due process. Winkle, ¶ 11. We rejected Winkle’s argument. Winkle, ¶ 19. We noted that Winkle attempted to rebut the information in the letter. Winkle, ¶ 16. We noted, however, that Winkle did not ask for a continuance until after the court had imposed his sentence. Winkle, ¶ 16. ¶67 Similar to Winkle, the District Court offered Roedel the opportunity to rebut the tape recording. The District Court invited Roedel to explain, argue, or rebut the tape recording when it asked whether he wished to cross examine the State’s witness or to offer rebuttal. Roedel declined to take advantage of either opportunity. The fact that he had the opportunity satisfied the District Court’s obligation to afford Roedel due process. ¶68 Roedel argues that allowing him the opportunity to preview the tape in advance would not have delayed significantly the hearing. We agree. Roedel’s argument fails to show, however, how this fact constitutes failure on the District Court’s part. Indeed, the record reveals that the District Court granted Roedel’s request for a recess immediately following the playing of the tape. Nothing prevented Roedel from requesting this recess, or moving for a continuance, before the State played the tape. The District Court had no affirmative obligation to take such action on Roedel’s behalf. Winkle, ¶ 19. We conclude that the District Court did not abuse its discretion in allowing the State to play the tape at the sentencing hearing. ¶69 Affirmed. CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER and RICE concur.
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JUSTICE MORRIS delivered the Opinion of the Court. ¶ 1 Appellant David L. Martin (Martin) worked for Sherman Brothers Trucking (Sherman Brothers), a corporation located in Oregon. Martin collected workers’ compensation from SAIF Corporation (SAIF) for an injury that occurred at a truck stop in Montana during the course and scope of his employment with Sherman Brothers. Martin filed a third-party tort claim against the owners of the truck stop. Martin settled the tort claim and SAIF sought to subrogate the claim under the laws of Oregon. Martin filed a declaratory judgment action in Montana: The District Court for the Fourth Judicial District, Missoula County, granted summary judgment in SAIF’s favor. Martin appeals and we affirm in part and reverse in part. ¶2 Martin presents the following issues on appeal: ¶3 Did the District Court properly grant summary judgment in SAIF’s favor on the grounds that the Board’s decision was entitled to full faith and credit? ¶4 Did the District Court abuse its discretion by awarding attorney fees to SAIF? FACTS AND PROCEDURAL HISTORY ¶5 Martin resided in Washington and worked as a long-haul truck driver for Sherman Brothers. Martin slipped and fell on a diesel fuel spill at Crossroads Travel Center (Crossroads) located near Missoula, Montana, on May 16, 2001, while acting within the course and scope of his employment with Sherman Brothers. Martin filed a workers’ compensation claim two days later with SAIF in Oregon. SAIF is Oregon’s not-for-profit, state-chartered workers’ compensation insurance company. SAIF paid Martin benefits for injuries, lost wages, and permanent partial disability. ¶6 Martin filed a third-party tort action against Crossroads in Missoula County on October 3, 2001. SAIF sent Martin a copy of a third-party election form and notified Martin that it intended to subrogate any proceeds from Martin’s third-party claim against Crossroads. Martin and Crossroads settled for $27,500 on August 20, 2002. SAIF notified Martin in October 2002 that SAIF claimed a lien of $59,940.58 on any settlement between Crossroads and Martin. ¶7 SAIF filed a distribution of proceeds with the Oregon Workers’ Compensation Board (Board) in Oregon on July 30, 2003. SAIF requested a proposed recovery of $12,222.22. Martin responded by filing a declaratory judgment action in Montana on August 18, 2003. Martin requested that the District Court determine that Montana law applied to the distribution of proceeds pursuant to the settlement of Martin’s third-party tort action. The Board issued a final decision in SAIF’s favor in Oregon on October 7,2003. The Board directed Martin to distribute $12,222.22 of its third-party settlement to SAIF. Martin filed an appeal to the Oregon Court of Appeals on October 20, 2003, but voluntarily dismissed his appeal on April 6, 2004. ¶8 SAIF filed a motion for summary judgment on April 21,2004, and Martin filed a cross-motion for summary judgment on May 5, 2004. SAIF attached as exhibits to its brief in support of its motion for summary judgment a copy of the Board’s decision and the letter of Martin’s counsel to the Oregon Court of Appeals withdrawing his appeal. The District Court in Montana granted summary judgment to SAIF in Martin’s declaratory action on July 14, 2004. The court also awarded attorney fees and costs to SAIF. Martin appeals. STANDARD OF REVIEW ¶9 We review de novo a district court’s grant of summary judgment, using the standard established by M. R. Civ. P. 56. The moving party must establish the absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Haynes v. Shodair Children’s Hosp., 2006 MT 128, ¶ 8, 332 Mont. 286, ¶ 8, 137 P.3d 518, ¶ 8. Once a moving party has met its burden, the opposing party must present substantial evidence essential to one or more elements of its case in order to raise a genuine issue of material fact. We review a district court’s conclusions of law to determine whether they are correct. Haynes, ¶ 8 (internal citation omitted). ¶10 A district court’s grant or denial of attorney fees is a discretionary ruling that we review for an abuse of discretion. Trustees of Indiana University v. Buxbaum, 2003 MT 97, ¶ 15, 315 Mont. 210, ¶ 15, 69 P.3d 663, ¶ 15. ISSUE ONE ¶11 Did the District Court properly grant summary judgment in SAIF’S favor on the grounds that the Board’s decision was entitled to full faith and credit? ¶12 Martin argues that the District Court need not extend full faith and credit to the Board’s decision. He argues that the Board never afforded him a fully contested case hearing on the matter, and therefore, the Board’s order does not constitute a final judgment. Martin also argues that Oregon lacked jurisdiction in the subrogation claim filed by SAIF. SAIF contends that Martin voluntarily dismissed his appeal of the Board’s decision to the Oregon Court of Appeals. SAIF argues that the Board’s judgment is final and entitled to full faith and credit by the District Court in Montana. ¶13 The United States Constitution provides that “Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records, and Proceedings shall be proved, and the Effect thereof.” U.S. Const. art. IV, § 1. The U.S. Supreme Court has held, and this Court has recognized, that the full faith and credit obligation owed to final judgments is exacting. Carr v. Bett, 1998 MT 266, ¶ 39, 291 Mont. 326, ¶ 39, 970 P.2d 1017, ¶ 39. A final judgment rendered by a state court is entitled to full faith and credit in the courts of its sister states. Underwriters National Assur. Co. v. North Carolina Life and Accident and Health Insurance Guaranty Ass’n, 445 U.S. 691, 102 S. Ct. 1357 (1982). Full faith and credit generally “ ‘requires every State to give to a judgment at least the res judicata effect which the judgment would be accorded in the State which rendered it.’ ” Carr, ¶ 39 (quoting Durfee v. Duke, 375 U.S. 106, 109, 84 S. Ct. 242, 244 (1963)). ¶14 Martin states that OAR 438-011-0045(2) precluded him from holding a contested case hearing before the Board. OAR 438-011-0045(2) provides that “[tjestimonial evidence shall be by deposition, affidavit or written interrogatories.” ORS 656.298 also requires, however, that the Board create a sufficient record to sustain judicial review at the Oregon Court of Appeals. The duty to create a sufficient record includes providing for oral argument if requested. OAR 438-011-0031(1) provides that “[a]t any time before expiration of the briefing schedule, a party may request that the Board entertain oral argument.” ¶15 Martin fails to offer evidence that he requested oral argument on SAIF’s petition to the Board to subrogate Martin’s settlement with Crossroads. Martin also voluntarily dismissed his appeal to the Oregon Court of Appeals from the Board’s decision in SAIF’s favor. The Board’s decision constitutes a final judgment entitled to full faith and credit. ¶16 Martin argues next that the Board lacked jurisdiction to hear SAIF’s subrogation claim, rendering the Board’s order invalid. Martin relies on Oberson v. Federated Mut. Ins. Co., 2005 MT 329, 330 Mont. 1, 126 P.3d 459, for the proposition that Montana law controls whether SAIF is entitled to subrogate, and, therefore, the Board lacked the jurisdiction to decide SAIF’s subrogation claim. ¶17 Oberson addressed the question of extending comity, however, rather than the application of full faith and credit to another state’s judgment. Musselman, a Michigan resident and an employee of a Michigan business, suffered injuries while working in Montana. Oberson, ¶ 4. Musselman filed a workers’ compensation claim in Michigan and a third-party tort action in Montana. Oberson, ¶ 4. Federated filed a subrogation claim against Musselman’s Montana personal injury award after Musselman prevailed in the Montana district court. Musselman responded by filing a declaratory action in Montana. Oberson, ¶ 6. We considered the question of “whether Montana’s or Michigan’s substantive law governs Federated’s subrogation interest in Musselman’s third-party tort award” while Federated’s subrogation claim was still pending before the Michigan Workers’ Compensation court. Oberson, ¶ 9. ¶18 We rejected Federated’s comity argument in Oberson on the grounds that Montana’s firm public policy disallowed subrogation before full recovery. We declined to relinquish voluntarily jurisdiction over the issue of subrogation to the Michigan Workers’ Compensation Court. Oberson, ¶ 17. Conversely, in Martin’s case, the Oregon Board already had issued a judgment determining that SAIF is entitled to subrogate. Martin voluntarily dismissed his appeal of the Board’s decision to the Oregon Court of Appeals on April 6, 2004, thus rendering final the Board’s decision. SAIF moved for summary judgment in the Montana declaratory judgment action two weeks later on April 21, 2004. ¶19 Montana’s firm public policy dictates against subrogation claims until after the worker is made whole. No public policy exception exists, however, to the full faith and credit accorded to final judgments. Carr, ¶ 45 (citing Baker by Thomas v. General Motors Corp., 522 U.S. 222, 118 S. Ct. 657 (1998)). The Full Faith and Credit Clause obligates us to give effect to the final Oregon judgment. The District Court correctly granted summary judgment in SAIF’s favor. ISSUE TWO ¶20 Did the District Court abuse its discretion by awarding attorney fees to SAIF? ¶21 Martin argues that the District Court abused its discretion by awarding attorney fees to SAIF as provided in § 27-8-313, MCA. Martin argues that under Buxbaum an award of fees must be “necessary and proper.” He contends that the court’s award of fees was not “necessary and proper” on the grounds that SAIF failed to satisfy the “tangible parameters” test. ¶22 Montana follows the general American Rule that a party in a civil action is not entitled to attorney fees absent a specific contractual or statutory provision. Buxbaum, ¶ 19 (citing Mountain West Farm Bureau v. Hall, 2001 MT 314, ¶ 13, 308 Mont. 29, ¶ 13, 38 P.3d 825, ¶ 13). This Court previously stated in Buxbaum that § 27-8-313, MCA, provides a statutory basis for awarding attorney fees in declaratory judgment actions. Buxbaum, ¶ 42. The award of attorney fees must be “necessary and proper.” Buxbaum, ¶ 42. Buxbaum fails to define what constitutes “necessary and proper.” ¶23 This Court has adopted, however, the “tangible parameter” test to determine whether attorney fees are “necessary and proper.” Renville v. Farmers Ins. Exchange, 2004 MT 366, ¶ 27, 324 Mont. 509, ¶ 27, 105 P.3d 280, ¶ 27. The tangible parameters test provides that fees are “necessary and proper” when “(1) an insurance company possesses what the plaintiffs sought in the declaratory relief action; (2) it is necessary to seek a declaration showing that the plaintiffs are entitled to the relief sought; and (3) the declaratory relief sought was necessary in order to change the status quo.” Renville, ¶ 27. ¶24 Here, of course, we must conduct the “necessary and proper” analysis with the roles reversed: Martin possessed the settlement proceeds from Crossroads. Martin nevertheless filed the declaratory judgment action to prevent SAIF from obtaining a portion of that settlement. This Court set forth examples in Buxbaum demonstrating that attorney fees were “necessary and proper” in instances where a plaintiff had to bring a declaratory action to obtain coverage or when no other alternative was available to remove the cloud from the title to property. Buxbaum, ¶ 44. ¶25 In the instant case, the District Court relied heavily on the fact that SAIF “was required to litigate identical issues in different forums, which affects its ultimate recovery and ability to be made whole from this ongoing, identical litigation in two separate forums.” The District Court focused on the fact that SAIF ultimately prevailed in the litigation rather than thoroughly articulating why an award of attorney fees to SAIF would be “necessary and proper.” ¶26 Unlike the plaintiffs in Buxbaum and Renville, Martin did not seek to obtain coverage or indemnification. Martin filed the declaratory judgment action to prevent SAIF from collecting a portion of his third-party settlement with Crossroads. Martin sought a determination from the District Court that Montana law would control the subrogation rights. SAIF cannot satisfy even the first prong of the tangible parameters test as it actually sought proceeds from Martin’s settlement. ¶27 Moreover, it was not necessary to SAIF to seek a declaration from the Montana court in order to change the status quo. The Board already had issued an order directing Martin to distribute $12,222.22 to SAIF as its proper share of Martin’s third-party settlement with Crossroads. Thus, SAIF cannot satisfy at least two elements of the tangible parameters analysis. ¶28 The District Court’s reliance on the fact that SAIF prevailed, and therefore, should be entitled to attorney fees does not comport with the “necessary and proper” requirement set forth in Buxbaum. We hold that neither party is entitled to attorney fees under the American Rule. Sampson v. National Farmers Union Property, 2006 MT 241, ¶ 15, 333 Mont. 541, ¶ 15, 144 P.3d 797, ¶ 15. The District Court abused its discretion by awarding attorney fees to SAIF. We vacate the award. ¶29 Affirmed in part and reversed in part. JUSTICES COTTER, LEAPHART and WARNER concur.
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CHIEF JUSTICE GRAY delivered the Opinion of the Court. ¶1 E.P.B. appeals from the order entered by the Second Judicial District Court, Silver Bow County, committing her to the Montana State Hospital. We reverse and remand with instructions. ¶2 E.P.B. raises several issues, some of which are not properly before us because they are raised for the first time on appeal. The restated and dispositive issue on appeal is whether the District Court made statutorily sufficient findings to support E.P.B.’s commitment. BACKGROUND ¶3 On May 30,2006, a deputy county attorney in Silver Bow County petitioned the District Court for an order to detain E.P.B. for purposes of a mental health evaluation, and to conduct an initial hearing to determine whether probable cause existed to pursue involuntary commitment. According to the petition, police officers brought E.P.B. to the emergency room of St. James Healthcare on May 27 because she was standing in the street in Butte with her luggage and staring ahead for a considerable length of time in a near catatonic state. Rick Wagner, a mental health professional, evaluatedE.P.B. and discovered that she had an identification card from Spokane Community College and a social security card in her possession. It appeared E.P.B. had gotten off a bus in a nearby community. The petition maintained that E.P.B. did not talk, tried to leave the emergency room, and wrote “non-sensible notes in block letters.” The petition further stated that Wagner believed E.P.B. was unable to take care of her needs and might be a danger to herself or others, and recommended commitment to the Montana State Hospital. A handwritten letter from Wagner to a deputy county attorney and a document entitled “brief contact/consultation summary” were attached to the petition. ¶4 The District Court held an initial hearing on May 30 and entered an order setting a hearing on the merits of the petition for involuntary commitment for May 31. At that hearing, mental health professional Delbert D. Fischer testified in support of the petition, and E.P.B. testified on her behalf. Near the close of the hearing, the District Court asked the deputy county attorney if he had an order prepared, and the deputy county attorney replied affirmatively. The District Court read aloud the conclusions of law and order portions contained in the written order prepared by the deputy county attorney, and ordered E.P.B. committed to the Montana State Hospital, authorizing the chief medical officer there to administer medication involuntarily. The court signed and entered the written order. E.P.B. appeals. STANDARD OF REVIEW ¶5 We ordinarily review a court’s findings of fact in an involuntary commitment case to determine whether, upon viewing the evidence in a light most favorable to the prevailing party, the findings are clearly erroneous. In re G.M., 2007 MT 100, ¶ 12, 337 Mont. 116, ¶ 12, 157 P.3d 687, ¶ 12 (citation omitted). The threshold issue in this case, however, is whether the District Court’s findings meet statutory requirements. In such cases, we are presented with a question of law, and we exercise de novo review to determine whether the court correctly interpreted and applied relevant statutes. See Jacobsen v. Thomas, 2006 MT 212, ¶ 13, 333 Mont. 323, ¶ 13, 142 P.3d 859, ¶ 13 (citations omitted). DISCUSSION ¶6 Did the District Court make statutorily sufficient findings to support E.P.B.’s commitment? ¶7 The statutes governing involuntary commitment, set forth in Title 53, Chapter 21, Part 1, MCA, are critically important due to the “calamitous effect of a commitment.” See G.M., ¶ 19 (citation omitted). We have long held that these statutes must be strictly followed. See, e.g., In re Mental Health of C.R.C., 2004 MT 389, ¶ 13, 325 Mont. 133, ¶ 13, 104 P.3d 1065, ¶ 13; In re Mental Health of D.L.T., 2003 MT 46, ¶ 8, 314 Mont. 297, ¶ 8, 67 P.3d 189, ¶ 8, overruled on other grounds by Johnson v. Costco Wholesale, 2007 MT 43, ¶ 21, 336 Mont. 105, ¶ 21, 152 P.3d 727, ¶ 21; In re Mental Health of T.J.D., 2002 MT 24, ¶ 20, 308 Mont. 222, ¶ 20, 41 P.3d 323, ¶ 20; Matter of R.M., 270 Mont. 40, 44, 889 P.2d 1201, 1204 (1995). ¶8 At a trial or hearing on a petition for involuntary commitment, a district court first determines whether the respondent is suffering from a mental disorder and, if so, determines whether the respondent requires commitment. In determining whether the respondent requires commitment and the appropriate disposition, a trial court must consider criteria including whether the respondent, because of a mental disorder, is substantially unable to provide for his or her own basic needs of food, clothing, shelter, health or safety; and whether, because of a mental disorder, there is an imminent threat of injury to the respondent or to others because of the respondent’s acts or omissions. Sections 53-21-126(1)(a) and -126(1)(c), MCA. ¶9 As the petitioner, the State of Montana bears the burden of proving any physical facts or evidence beyond a reasonable doubt, the respondent’s mental disorder to a reasonable medical certainty, and any other matters by clear and convincing evidence. Section 53-21-126(2), MCA. In ordering commitment, the court must make a detailed statement of the facts upon which it found the respondent to be suffering from a mental disorder and requiring commitment. Section 53-21-127(8)(a), MCA. ¶10 The order committing E.P.B. contains three findings of fact: 1. The Respondent, [E.P.B.] is a transient person temporarily in the City of Butte, County of Silver Bow, State of Montana. 2. Delbert D. Fischer, M.Ed., the professional person who evaluated the Respondent, testified that in his opinion and to a reasonable medical certainty, the Respondent suffers from a mental disorder requiring commitment, specifically psychotic disorder. Fischer testified that the Respondent presently constituted an imminent danger to herself and was unable to provide for her own basic needs of health and safety. Fischer testified that the Respondent’s mental disorder was amenable to treatment, but that the Respondent refused any voluntary course of treatment. Fischer also testified that the Respondent, in her present mental condition, was unable to make informed decisions concerning her mental health care and the necessity of taking appropriate medications. Accordingly, Fischer recommended that the Court commit the Respondent to the state hospital on an involuntary basis for appropriate care and treatment and that the Court authorize the provision of medications to the Respondent on an involuntary basis, if necessary. 3. Fischer’s testimony was consistent with the initial report of evaluation done by Richard P. Wagner, LCSW, another qualified professional person. The order also contains four conclusions, including that E.P.B. “presently suffers from a serious mental illness requiring commitment, as evidenced to a reasonable medical certainty by the testimony of [Fischer], a qualified mental health professional,” and E.P.B. “in her present mental condition constitutes an imminent danger to her own life and health and is unable to provide for her own basic needs of health and safety.” ¶11 On appeal, the State contends it presented sufficient evidence to warrant E.P.B.’s commitment under § 53-21-126(1), MCA. Because we conclude the District Court entered legally insufficient findings and failed to discharge its statutory duties, we do not address the sufficiency of the evidence in this case. ¶12 As noted above, the record reflects the deputy county attorney prepared the order signed by the District Court, and-given the deputy county attorney’s production of the order before the hearing ended and the lack of any reference to E.P.B.’s testimony-it is relatively clear that the order was prepared before the hearing commenced. Involuntary commitment statutes afford the respondent numerous rights, including rights to due process of law, to be present at any hearing, to offer evidence, and to present and cross-examine witnesses. See §§ 53-21-101(4), -115(2) and -115(4), MCA. As these and other statutes make clear, a hearing on a petition for involuntary commitment is not merely a pro forma requirement, but an opportunity for the parties-both the petitioner and the respondent-to present evidence upon which the trial court can make required findings and enter appropriate orders. In a different case, adoption of a petitioner’s proposed findings and conclusions might be appropriate in light of the evidence presented, but district courts must-at the very least-ensure that such “prepared” orders comply with statutory mandates. See, e.g., In re C.R.C., ¶ 13. ¶13 The findings in the order committing E.P.B. are a far cry from the “detailed statement of the facts” a trial court must make pursuant to § 53-21-127(8)(a), MCA, in ordering commitment. Merely reciting witness Fischer’s testimony and stating it was consistent with another professional person’s evaluation is in no way equivalent to making findings of fact-based on the applicable standards of proof-that a person is suffering from a mental condition and requires commitment. Nor do conclusory statements of statutory criteria and broad references to a witness’ testimony-such as those in the conclusions at issue here-constitute strict compliance with the statutory mandate of § 53-21-127(8)(a), MCA. See In re G.M., ¶ 22. ¶14 We hold the District Court erred in failing to make statutorily sufficient findings to support E.P.B.’s commitment. ¶15 Reversed and remanded with instructions to enter an order vacating the commitment order. JUSTICES LEAPHART, NELSON, COTTER, WARNER and MORRIS concur.
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CHIEF JUSTICE GRAY delivered the Opinion of the Court. ¶1 George Harold Davis (Davis) appeals from the order of the Fifth Judicial District Court, Madison County, denying his motion to reconsider the court’s earlier order denying his motion for appointment of counsel. We affirm. ¶2 The sole issue on appeal is whether the District Court erred in denying Davis’ motion to reconsider. BACKGROUND ¶3 On March 29, 2004, Davis pled guilty to one count of deliberate homicide and six counts of attempted deliberate homicide. The District Court sentenced Davis to life imprisonment in the Montana State Prison without the possibility of parole on each of the seven counts, with the sentences to run concurrently. The District Court entered its written judgment on the convictions and sentences on September 9, 2004. Davis did not appeal from the judgment. ¶4 On September 27, 2005, Davis, acting on his own behalf, moved the District Court to appoint him counsel “for the purpose of seeking post-conviction relief ....” The District Court denied the motion for appointment of counsel on December 2, 2005. On March 2, 2006, Davis-acting through counsel appointed to represent him in a separate proceeding in Missoula County-moved the District Court to vacate its December of2005 order denying his request for counsel, reconsider his request for appointment of counsel to pursue postconviction proceedings and declare the statute of limitations governing the filing of postconviction relief petitions equitably tolled as of September 27, 2005, the date on which he filed his original motion for appointment of counsel. The District Court denied this motion, concluding Davis had failed to establish that the court’s prior order denying his request for counsel was erroneous. Davis appeals. STANDARD OF REVIEW ¶5 In appealing from the District Court’s order denying his motion to vacate the court’s prior order concerning denial of appointment of counsel, Davis challenges various of the District Court’s conclusions of law, including its interpretation and application of several statutes. We review a district court’s conclusions of law to determine whether those conclusions are correct. State v. Brockway, 2005 MT 179, ¶ 8, 328 Mont. 5, ¶ 8, 116 P.3d 788, ¶ 8. DISCUSSION ¶6 Did the District Court err in denying Davis’ motion to reconsider? ¶7 Davis appeals from the District Court’s order denying his motion that the court reconsider its December 2, 2005, order denying Davis’ motion for appointment of counsel to pursue postconviction relief. The District Court denied Davis’ motion to reconsider based on its conclusion that Davis failed to establish that the court’s rationale in denying his original motion for appointment of counsel was incorrect. Thus, in reviewing whether the District Court erred in denying Davis’ motion to reconsider, we must review the District Court’s underlying determinations in its December of 2005 order denying appointment of counsel. ¶8 In its December 2, 2005, order, the District Court first determined that Davis was required to file any postconviction relief petition by September 7, 2005. Therefore, according to the court, by the time Davis filed his motion for appointment of counsel on September 27, 2005, the time in which to file for postconviction relief had expired and “[a]bsent an opportunity to apply for post conviction relief, there is no merit in appointing counsel.” Davis contends that the District Court erred in determining that the time in which to file a postconviction relief petition expired on September 7, 2005, and we agree. ¶9 A petition for postconviction relief may be filed at any time within one year of the date on which a defendant’s conviction becomes final. Section 46-21-102(1), MCA. Where a defendant does not appeal from his or her conviction, the conviction becomes final when the time for such an appeal to this Court expires. Section 46-21-102(1)(a), MCA. The time for appeal to this Court expires 60 days from the date of entry of judgment. M. R. App. P. 5(b). The written judgment on Davis’ convictions and sentences in this case was filed on September 9, 2004; therefore, the time within which to appeal to this Court expired on November 8, 2004. Consequently, Davis had until November 8, 2005, in which to file for postconviction relief. As a result, when Davis filed his motion for appointment of counsel on September 27, 2005, there were still 42 days left in which he could timely file for postconviction relief and the District Court’s conclusion to the contrary was erroneous. ¶10 The District Court, however, provided an alternative rationale for its refusal to appoint counsel in its 2005 order. The District Court determined it could appoint counsel only in the event Davis had requested relief by filing a petition which appeared to demonstrate good cause and entitlement to postconviction relief. The District Court further observed that Davis’ motion for appointment of counsel was not technically sufficient to constitute a postconviction relief petition and Davis had filed no other document purporting to be a postconviction relief petition. On that basis, the District Court concluded that it could not appoint counsel for Davis under the circumstances. Again, Davis asserts error. ¶11 Davis concedes that his motion for appointment of counsel did not constitute a petition for postconviction relief and he filed no other document which would constitute such a petition. He asserts, however, that the District Court erred in concluding that Davis was required to file a petition prior to being appointed counsel to pursue postconviction relief. He points out that, in his motion, he requested counsel be appointed pursuant to § 46-8-104, MCA, and that this statute does not require that a formal postconviction relief petition be filed before counsel may be appointed. Rather, according to Davis, the language of the statute clearly provides that counsel may be appointed at any time subsequent to a conviction when a defendant is considering pursuing a postconviction action. On this point, however, we disagree. ¶12 Section 46-8-104, MCA, provides that a court of record may assign counsel “to defend any defendant, petitioner, or appellant in any postconviction criminal action or proceeding if [he] desires counsel and is unable to employ counsel.” In construing this statute, we must apply the plain meaning of the words used by the Montana Legislature, without omitting or inserting language. See § 1-2-101, MCA. The statute clearly states that counsel may be assigned “in any postconviction criminal action or proceeding ....” The word “in” is defined, insofar as is applicable here, as “[d]uring the act or process of ....” American Heritage Dictionary 883 (4th ed., Houghton Mifflin Co. 2000). Applying this definition, § 46-8-104, MCA, provides that counsel may be assigned during the act or process of “any postconviction criminal action or proceeding ....” Thus, contrary to Davis’ assertion, we conclude the plain language of this statute requires that an action or proceeding for postconviction relief be coxnmenced-in other words, that a proceeding exist-prior to consideration of a motion for appointed counsel in the proceeding. ¶13 The statute specifically addressing appointment of counsel in postconviction proceedings also clearly indicates the Legislature’s intent in this regard. Section 46-21-201(2), MCA, provides that, “[i]f the death sentence has not been imposed and a hearing is required or if the interests of justice require, the court shall order the office of the state public defender ... to assign counsel for a petitioner [for postconviction relief] who qualifies for the assignment of counsel under Title 46, chapter 8, part 1 ....” Before a trial court can determine whether a hearing is required or the interests of justice require appointment of counsel, it must be presented with a postconviction relief petition setting forth the claims asserted and the facts and evidence supporting those claims. See § 46-21-104, MCA. ¶14 We conclude that the District Court did not err in determining that Davis was required to file a petition for postconviction relief before the court could consider his motion to appoint counsel in the postconviction proceeding, and in denying appointment of counsel because Davis had not filed a valid petition. We further conclude, therefore, that the District Court did not err in denying Davis’ motion to reconsider its December of 2005 order on that basis. ¶15 Davis also argues that the District Court erred in denying his request to equitably toll the statute of limitations for filing a postconviction relief petition as of September 27, 2005, the date on which he filed his motion for appointment of counsel. Davis first argues that “[a]s a reasonable lay person, Mr. Davis would have supposed he was not required-or even allowed-to do anything further about a petition, until the court ruled on his request for counsel.” He further contends that the District Court’s actions-in failing to rule on his motion for appointment of counsel until after the statute of limitations for filing for postconviction relief had run, treating his motion as a postconviction relief petition and denying it on the basis it was not technically sufficient as such, and determining the statute of limitations for postconviction relief had run at the time he filed his motion for appointment of counsel — violated his right to procedural due process under Article II, Section 17 of the Montana Constitution and requires equitable relief. ¶16 We observe at the outset that the District Court did not indicate to Davis in any way that the time in which to file a postconviction relief petition would be tolled during the period in which it considered his motion for appointment of counsel, and Davis points to no other basis supporting his assumption that he could wait for the District Court’s ruling before filing his petition. Although Davis filed a motion for appointment of counsel, he filed no other document meeting the time and content requirements for a postconviction relief petition contained in §§ 46-21-102 and -104, MCA. He simply took no action to preserve his ability to petition for postconviction relief. ¶17 Furthermore, Davis did not argue in the District Court that an alleged violation of his constitutional procedural due process right required equitable tolling of the statute of limitations. We do not address new arguments and changes of legal theory on appeal because it is fundamentally unfair to fault a district court on an issue it was never given an opportunity to address. See, e.g., State v. Gomez, 2007 MT 111, ¶ 21, 337 Mont. 219, ¶ 21, 158 P.3d 442, ¶ 21; State v. Long, 2005 MT 130, ¶ 35, 327 Mont. 238, ¶ 35, 113 P.3d 290, ¶ 35. Consequently, we decline to address Davis’ constitutional due process argument. ¶18 We hold that the District Court did not err in denying Davis’ motion to reconsider. ¶19 Affirmed. JUSTICES MORRIS, WARNER and RICE concur.
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JUSTICE LEAPHART delivered the Opinion of the Court. ¶ 1 Defendant Herman Krum appeals his conviction for two counts of felony sexual assault. As part of Krum’s sentence, the District Court ordered him to pay “assessments” to three community entities. Krum challenges the sentence’s legality, and argues that the District Court was without authority to impose these assessments. We reverse and remand with instructions to strike the illegal portion of the sentence. ¶2 We restate the issues as follows: ¶3 I. Did the District Court err in sentencing Krum to pay a $5,000 assessment to the Park County Court Automation Fund, a $2,500 assessment to the Tri-County Network for Domestic Violence, and a $2,500 assessment to Park County Big Brothers and Sisters as part of his sentence for felony sexual assault? ¶4 II. If so, what is the appropriate remedy? BACKGROUND ¶5 On June 30,2006, a jury found Herman Krum guilty of two counts of felony sexual assault under § 45-5-502(1), (3), MCA (2001). Krum’s victim, K.G., was a nine-year-old female. ¶6 Following the trial, the district probation officer prepared a presentence investigation report (PSI). Krum underwent a psychosexual evaluation, which identified him as a Level I Low Risk Offender. The PSI recommended a suspended prison sentence, so that Krum might begin a sex offender treatment program sooner. The PSI also recommended multiple conditions of probation, including payment of restitution to the victim, and prohibition of all contact with children under the age of eighteen. None of the recommended conditions contained a requirement to pay fines or assessments to community entities. ¶7 At Krum’s sentencing hearing, the victim and her family members testified in opposition to Krum’s release on any form of probation. Two other witnesses testified that they had also been sexually assaulted by Krum. The District Court sentenced Krum to the Montana Department of Corrections for twenty years. The term was suspended with the exception of two years, as provided for under § 45-5-502 at the time. Section 45-5-502(3), MCA (2001). The District Court’s sentence was subject to a number of terms and conditions, including the successful completion of an approved sex offender treatment program and payment of restitution to the victim’s family. ¶8 The District Court also imposed the following condition: The defendant has sufficient funds to pay a $5,000.00 assessment to the Park County Court Automation Fund, $2,500.00 to the TriCounty Network for Domestic Violence, and $2,500.00 to Park County Big Brothers and Sisters, all to give back to society and those who assist and help others who are victims of these type of offenses. This is the only provision of the sentence which Krum appeals. STANDARD OF REVIEW ¶9 This Court reviews a criminal sentence for legality to determine whether the sentence is within the statutory parameters. State v. Hicks, 2006 MT 71, ¶ 41, 331 Mont. 471, ¶ 41, 133 P.3d 206, ¶ 41. See also State v. Ruiz, 2005 MT 117, ¶ 8, 327 Mont. 109, ¶ 8, 112 P.3d 1001, ¶ 8. DISCUSSION ¶10 I. Did the District Court err in sentencing Krum to pay a $5,000 assessment to the Park County Court Automation Fund, a $2,500 assessment to the Tri-County Network for Domestic Violence, and a $2,500 assessment to Park County Big Brothers and Sisters? ¶11 The district court’s authority to sentence a criminal defendant is both defined and constrained by statute. Hicks, ¶ 41. See also Ruiz, ¶ 12. It is well established that “the court has no power to impose a sentence in the absence of specific statutqry authority.” Hicks, ¶ 41. See also Ruiz, ¶ 12. Thus, “a sentence not based on statutory authority is an illegal sentence.” Hicks, ¶ 41 (citing Ruiz, ¶ 12). ¶12 A. Are the assessments authorized as statutory fines for the crime of sexual assault? ¶13 A person convicted of sexual assault may be fined up to $50,000, if the victim is less than sixteen years old and the offender is three or more years older than the victim. Section 45-5-502(3), MCA (2001). Here, Krum was more than six decades older than his victim, who was nine years old at the time of the assault. Thus, the District Court had statutory authority to fine Krum in an amount up to $50,000 for each of his felony sexual assault convictions. ¶14 The District Court did not include a fine per se in Krum’s sentencing, but did include several “assessments” to be paid to community entities which serve victims of sexual abuse. ¶15 The Montana Code requires that all funds collected as fines or costs from a criminal defendant must be paid by the clerk of the district court to the Montana Department of Revenue for deposit into the General Fund. Section 46-18-235(1)(a), MCA. Here, however, the District Court ordered that the assessments be paid to community entities instead of the Department of Revenue. The District Court cannot redirect the money collected from the defendant simply by labeling it an “assessment” instead of a “fine.” The State has not identified any statutory authority which would allow district courts to redirect the disposition of fines collected from criminal defendants. Thus, the “assessments” ordered by the District Court cannot be considered “fines” authorized by § 45-5-502(3), MCA. ¶16 B. Are the assessments authorized as a necessary and reasonably related limitation on the sentence? ¶17 The State argues that the District Court had discretion to impose the assessments as restrictions or conditions on the sentence under § 46-18-202(1)(f), MCA. This section provides that the sentencing judge may impose “any other limitation reasonably related to the objectives of rehabilitation and the protection of the victim and society” where necessary. Section 46-18-202(1)(f), MCA. ¶18 This Court has upheld two types of sentencing conditions under § 46-18-202(1)(f): first, limitations on a defendant’s conduct, and second, payments of restitution from the defendant to the victim. See e.g. Ruiz, ¶ 11; State v. Vernes, 2006 MT 32, ¶ 30, 331 Mont. 129, ¶ 30, 130 P.3d 169, ¶ 30. In evaluating the legality of a condition under § 46-18-202(1)(f), we will consider whether a reasonable nexus between the condition and the underlying felony exists. See e.g. State v. Armstrong, 2006 MT 334, ¶¶ 10-11, 335 Mont. 131, ¶¶ 10-11, 151 P.3d 46, ¶¶ 10-11. ¶19 We have held that in limited instances, § 46-18-202(1)(f) “authorizes restitution in cases where there is a connection between the crime and the pecuniary loss of the victim.” Vernes, ¶ 30. See also State v. McIntire, 2004 MT 238, ¶ 18, 322 Mont. 496, ¶ 18, 97 P.3d 576, ¶ 18. In McIntire, we found that this section authorized the payment of restitution to the victim, because there was “a direct connection and correlation between the burglary and the pecuniary loss to the victim.” McIntire, ¶ 18. In Vernes, the restitution was also paid directly from the defendant to the victim, this time to cover the victim’s medical costs. Vernes, ¶ 30. ¶20 The State argues that the assessments are reasonably related to Krum’s underlying felony convictions. However, it is unnecessary for us to consider whether the assessments have a sufficient nexus to Krum’s crimes, because § 46-18-202(1)(f) does not provide the necessary statutory authority for imposing the assessments in the first place. The assessments ordered by the District Court are not “limitations” on Krum’s conduct. Instead, they are affirmative duties to make donations to community entities. Neither can the assessments be characterized as restitution, because the money is being paid to community entities rather than to the victim. The District Court separately provided for the victim’s compensation and restoration by ordering Krum to pay restitution for her counseling costs. Restitution paid directly to the victim may be authorized by § 46-18-202(1)(f), but payments made to third party organizations are not. ¶21 In sum, the assessments are not authorized by either § 45-5-502(3) or § 46-18-202(1)(f). Without express statutory authority, the District Court may not impose the assessments as part of Krum’s sentence. Thus, the portions of the sentence pertaining to the assessments are illegal. ¶22 II. If so, what remedy is appropriate? ¶23 The remedy for an illegal sentence varies. Where the illegal portion of the sentence is a condition of a suspended sentence, this Court has typically remanded with instructions to strike the offending portion. Hicks, ¶ 44. Where the illegal portion affects the entire sentence, or in instances where this Court is unable to tell what action the trial court would have taken under a correct application of the law, remand for resentencing is the preferred remedy. Hicks, ¶ 44. ¶24 Here, the illegal part of the sentence is only one of several conditions placed on Krum’s sentence. Without the illegal assessments, Krum will still have to pay over $10,000 in restitution to the victim and to the Park County Detention Center, and in various administrative fees and surcharges. He will have to serve at least two years in prison. Krum’s sentence also contains over twenty other detailed terms and conditions, including the requirement of completing an approved sex offender treatment program, and the absolute prohibition of all contact with the victim and all other children under the age of eighteen. ¶25 After reviewing the sentence in its entirety, it is clear that the decision to strike the illegal assessments will not affect the rest of the sentence. We are confident that the remaining portions of the sentence meet the State’s statutory goals of punishing the offender, rehabilitating both the victim and the offender, and protecting the victim and the public. Section 46-18-101(2), MCA. CONCLUSION ¶26 The District Court erred in sentencing Krum to pay “assessments” of $5,000 to the Park County Court Automation Fund, $2,500 to the Tri-County Network for Domestic Violence, and $2,500 to Park County Big Brothers and Sisters. These assessments were made without statutory authority, and as such, are illegal. Thus, we reverse and remand with instructions to strike the illegal portion of the sentence. CHIEF JUSTICE GRAY, JUSTICES NELSON, COTTER and MORRIS concur.
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JUSTICE LEAPHART delivered the Opinion of the Court. ¶1 Jacob Ralph Starr appeals his sentence. Starr argues that the District Court erred by ordering him to repay $2,103.40 in court-appointed attorney’s fees. We reverse and remand with instructions to strike the illegal portion of the sentence. ¶2 We restate the issue as follows: ¶3 Did the District Court err in finding Starr unable to pay a fine, and then sentencing him to pay his court-appointed attorney’s fees? BACKGROUND ¶4 Starr pled guilty to the counts of criminal possession with intent to distribute and criminal possession of drug paraphernalia. The presentence investigation report (PSI) stated that Starr had a monthly income of $1,000 and that he earned an hourly wage of six dollars as a cook. The PSI recommended that Starr pay a fine of $3,000, in addition to other administrative fees and costs. Notably, the PSI also recommended that Starr pay public defender fees, but failed to specify the amount of the fees. ¶5 At the sentencing hearing, the District Court expressed concern that Starr would not be able to pay the fine recommended by the PSI: “[I] don’t see how you’re going to pay $3,000 in three years at $6 an hour.” The District Court then gave Starr credit for time served against the fine. Both the hearing transcript and the published judgment contain the District Court’s finding that Starr had a “limited ability to pay.” ¶6 However, the District Court then ordered Starr to reimburse the State for cost of his court-appointed attorney’s fees, and made it clear that the credit for time served would only be applied against the fine, not the fees. Neither the PSI nor the transcript of the sentencing hearing specifies the amount of the attorney’s fees. The District Court’s published judgment orders Starr to pay $2,103.40 for his court-appointed attorney. STANDARD OF REVIEW ¶7 This Court reviews a criminal sentence for legality to determine whether the sentence is within the statutory parameters. State v. Kotwicki, 2007 MT 17, ¶ 5, 335 Mont. 344, ¶ 5, 151 P.3d 892, ¶ 5. DISCUSSION ¶8 A court may not sentence a defendant to pay the costs for assigned counsel unless the defendant is or will be able to pay them. Section 46-8-113(3), MCA. Here, the District Court found that Starr could not afford to pay a $3,000 fee. This finding directly undermines the District Court’s order that Starr pay $2,103.40 in attorney’s fees. The District Court did not make any finding which explains this contradiction, or demonstrates how Starr would be able to pay the costs for his assigned counsel. ¶9 The total cost of the attorney’s fees was not included in the PSI, nor disclosed at any time during the sentencing hearing. It is clear that the District Court could not have made an informed determination about Starr’s ability to pay without this crucial piece of information. ¶10 Absent an affirmative finding of Starr’s ability to pay the attorney’s fees, the District Court’s sentence is illegal for failing to comply with the requirements of § 46-8-113(3), MCA. CONCLUSION ¶11 The District Court’s sentence requiring Starr to pay the costs for his assigned counsel goes against the weight of its evidentiary findings, and is illegal because it does not meet the requirements of § 46-8-113(3), MCA. We reverse and remand with instructions to strike the portion of the sentence concerning the attorney’s fees. CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER and COTTER concur.
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JUSTICE WARNER delivered the Opinion of the Court. ¶1 Paul Jay Southwick (Southwick) appeals from the denial of his motion for re-sentencing in the Eighth Judicial District, Cascade County. ¶2 We restate and address the issues on appeal as follows: ¶3 1. Does the doctrine of res judicata bar this Court’s consideration of the merits of Southwick’s claim that the District Court imposed an illegal sentence? ¶4 2. Does Southwick’s failure to object to his sentences at either of his original sentencing hearings, or at the time the District Court revoked his suspended commitments, preclude review of his sentences? ¶5 3. Do the sentences imposed exceed the District Court’s statutory authority? BACKGROUND ¶6 On March 29, 1999, the State charged Southwick in Cascade County No. BDC-99-105 with the felony offense of issuing abad check. That same day he was also charged in Cascade County No. CDC-99-106 with the offense of felony forgery. The offenses in both cases occurred in late 1998. In October 2000, Southwick pled guilty in both cases. ¶7 On December 12, 2000, the District Court committed Southwick to the Montana Department of Corrections (DOC) for placement in an appropriate facility or program for a period of ten years with five years suspended in No. BDC-99-105. He received 558 days credit for time already served. Later, on February 8, 2001, he was committed in CDC-99-106 to DOC for fifteen years with ten years suspended. He received 616 days credit for time already served. ¶8 At the time Southwick committed the offenses, the applicable statute limited a commitment to the DOC to five years. Section 46-18-201(1)(e), MCA (1997). However, in 1999, the Montana legislature amended this section to allow a longer DOC commitment up to the maximum time that a defendant could be sentenced for a particular offense, provided that “all but the first 5 years of the commitment to the department of corrections [are] suspended.” Section 46-18-201(3)(d)(i), MCA (1999). ¶9 In March 2002, Southwick was released on parole. The record reflects that his parole was revoked in April 2003, and he returned to DOC custody. Southwick then petitioned this Court for a writ of habeas corpus. He argued that the District Court improperly applied the sentencing statute that was in effect at the time he was committed to the DOC, instead of the statute in effect at the time he committed the offenses. On September 30, 2003, this Court denied his petition. ¶10 The record makes it clear that Southwick discharged the unsuspended five year part of his DOC commitments by June 1,2004. He was then released from custody to begin serving the suspended portion of the commitments. In February 2005, the State filed a petition in both BDC-99-105 and CDC-99-106 to revoke the suspended portions of his commitments. The District Court revoked the suspended commitments and ordered that Southwick again be committed to DOC for an additional five years in each case. ¶11 In February of2006, Southwick petitioned this Court for a writ of habeas corpus, again arguing that his sentence was illegal. His petition was denied in March 2006, based on the doctrine of res judicata. ¶12 In addition to his petition in this Court, Southwick simultaneously filed motions in the District Court for re-sentencing on the ground that his sentence was illegal. Neither Southwick nor the State raised the sufficiency or timeliness of his motion to re-sentence. The District Court denied his motions, and he now appeals that denial in a consolidated appeal of both BDC-99-105 and CDC-99-106. STANDARD OF REVIEW ¶13 This Court reviews a criminal sentence for its legality. State v. Webb, 2005 MT 5, ¶ 8, 325 Mont. 317, ¶ 8, 106 P.3d 521, ¶ 8. DISCUSSION ISSUE ONE ¶14 Does the doctrine of res judicata bar this Court’s consideration of the merits of Southwick’s claim that the District Court imposed an illegal sentence? ¶15 The State asserts that res judicata bars review of Southwick’s argument because this Court has previously addressed the issue in ruling on his habeas petition in 2003. Generally, res judicata dictates that an appellant may not raise issues that we have decided in a prior appeal. State v. Black, 245 Mont. 39, 44, 798 P.2d 530, 533 (1990); State v. Perry, 232 Mont. 455, 463-65, 758 P.2d 268, 273 (1988), overruled on other grounds, State v. Clark, 2005 MT 330, ¶ 32, 330 Mont. 8, ¶ 32, 125 P.3d 1099, ¶ 32. The policy rationales underlying res judicata are judicial economy and the need for finality of judgments. Perry, 232 Mont. at 463, 758 P.2d at 273. ¶16 While res judicata usually precludes reviewing an issue already decided, we have also recognized that in limited circumstances the Court may correct a “manifest error” in its prior decision: “The doctrine of res judicata, if applicable, does not prevent the court from correcting manifest error in its former judgment.... ‘[or] require[] it to adhere to an unsound declaration of the law. It may, for cogent reasons, reverse or qualify a prior decision, even in the same case. But the cases in which this will be done are exceptional, and the power should be sparingly exercised.’ ” Fiscus v. Beartooth Electric Cooperative, Inc., 180 Mont. 434, 437, 591 P.2d 196, 198 (1979) (quoting Perkins v. Kramer, 121 Mont. 595, 600, 198 P.2d 475, 477 (1948) (citation omitted)). We have also noted that, “ ‘[conventional notions of finality of litigation have no place where life or liberty is at stake and infringement of constitutional rights is alleged.’ ” Kills On Top v. State, 279 Mont. 384, 400, 928 P.2d 182, 192 (1996) (quoting Sanders v. U.S., 373 U.S. 1, 8, 83 S. Ct. 1068, 1073 (1963)). ¶17 We apply res judicata to bar re-litigation of issues in criminal cases if three criteria are met: (1) the same ground presented in the subsequent application was determined adversely to the applicant on the prior application, (2) the prior determination was on the merits, and (3) the ends of justice would not be served by reaching the merits of the subsequent application. Kills On Top, 279 Mont. at 399, 928 P.2d at 192 (citing State v. Baker, 272 Mont. 273, 282, 901 P.2d 54, 59 (1995)). When a criminal defendant is potentially subject to a facially illegal sentence, the ends of justice suggest that res judicata should not bar rehearing of issues, even if the first two criteria are met. See Kills On Top, 279 Mont. at 400, 928 P.2d at 192. ¶18 Similarly, this Court has held that other procedural bars, such as limitations on habeas proceedings, may not apply when a defendant’s sentence is facially illegal. Lott v. State, 2006 MT 279, ¶¶ 20-22, 334 Mont. 270, ¶¶ 20-22, 150 P.3d 337, ¶¶ 20-22. As we stated in Lott, “incarceration of an individual pursuant to a facially invalid sentence represents a ‘grievous wrong,’ and a ‘miscarriage of justice’ ” that warrants relief even if the defendant is otherwise procedurally barred. Lott, ¶ 22 (quoting Brecht v. Abrahamson, 507 U.S. 619, 637, 113 S. Ct. 1710, 1721 (1993); Perry, 232 Mont. at 462, 758 P.2d at 273). ¶19 We conclude that Southwick’s appeal presents the rare and exceptional situation where the procedural bar of res judicata should not apply because justice demands that we not permit a facially illegal sentence to stand. While the State correctly notes that we reviewed Southwick’s claim on the merits when we denied his habeas petition in 2003, thus meeting the first two prongs of the test set forth in Kills On Top and Baker, Southwick contends he is subject to a facially illegal sentence. As in Lott, the ends of justice require us to reach the merits of Southwick’s appeal. ISSUE TWO ¶20 Does Southwick’s failure to object to his sentences at either of his original sentencing hearings, or at the time the District Court revoked his suspended commitments, preclude review of his sentences? ¶21 Southwick faces another procedural hurdle to review of his claim because he did not object to his sentences when they were imposed. Generally, the Court will not review issues that the appellant failed to raise at the district court level. State v. Kotwicki, 2007 MT 17, ¶ 8, 335 Mont. 344, ¶ 8, 151 P.3d 892, ¶ 8. However, there is a narrow exception to the rule. State v. Lenihan, 184 Mont. 338, 343, 602 P.2d 997, 999-1000 (1979). The Court may “review any sentence imposed in a criminal case, if it is alleged that such sentence is illegal or exceeds statutory mandates, even if no objection is made at the time of sentencing.” Lenihan, 184 Mont. at 343, 602 P.2d at 1000. ¶22 We have used the Lenihan exception when an appellant argues that a district court did not have authority to impose a particular sentence. For example, we applied Lenihan to reverse a sentence where the district court applied the incorrect statute when revoking a suspended sentence. State v. Brister, 2002 MT 13, ¶¶ 26-28, 308 Mont. 154, ¶¶ 26-28, 41 P.3d 314, ¶¶ 26-28. The sentence in Brister was illegal because it was imposed under a statute in effect at the time of revocation, rather than the statute in effect at the time the defendant committed the offense. Brister, ¶ 27. Similarly, we have reviewed a sentence where the defendant argued the district court exceeded statutory authority by impermissibly applying a sentencing enhancement. State v. Garrymore, 2006 MT 245, ¶¶ 15-16, 334 Mont. 1, ¶¶ 15-16, 145 P.3d 946, ¶¶ 15-16. ¶23 Southwick’s case brings him precisely within the narrow Lenihan exception. In this case, similar to Brister, the District Court did not apply the correct sentencing statute and was thus without statutory authority to impose the sentences ordered. Because Southwick raises a claim that his sentences exceed the District Court’s statutory authority, and not merely that the judge applied the statute incorrectly, we review the merits of his claim even though he did not raise the issue at his sentencing. ISSUE THREE ¶24 Do the sentences imposed exceed the District Court’s statutory authority? ¶25 This Court has consistently held that a person must be sentenced under the statutes in effect at the time of the offense. State v. Tracy, 2005 MT 128, ¶ 16, 327 Mont. 220, ¶ 16, 113 P.3d 297, ¶ 16; State v. Muhammad, 2002 MT 47, ¶ 24, 309 Mont. 1, ¶ 24, 43 P.3d 318, ¶ 24; Brister, ¶ 26. The prohibition on ex post facto laws includes statutes which make the punishment for a crime more burdensome than under the prior law. State v. Suiste, 261 Mont. 251, 253, 862 P.2d 399, 401 (1993). District courts cannot apply a sentencing statute enacted after the commission of an offense because to do so violates the prohibition on ex post facto laws. State v. Gone, 179 Mont. 271, 280, 587 P.2d 1291, 1297 (1978). ¶26 A district court only has the authority to impose a sentence based on the authority granted by the applicable statute. Any sentence that exceeds such authority is illegal and facially invalid. State v. Hicks, 2006 MT 71, ¶ 41, 331 Mont. 471, ¶ 41, 133 P.3d 206, ¶ 41; State v. Ruiz, 2005 MT 117, ¶ 8, 327 Mont. 109, ¶ 8, 112 P.3d 1001, ¶ 8. ¶27 In this case, Southwick committed both offenses in 1998, while the 1997 version of the relevant statute was in effect. Section 46-18-201(1)(e), MCA (1997), authorized commitment to the DOC for only five years. The District Court exceeded the five year maximum under the 1997 statute by sentencing Southwick to ten years with five years suspended for issuing a bad check and fifteen years with ten years suspended for forgery. Therefore, the District Court erred in sentencing Southwick. Because § 46-18-201(3)(d)(i), MCA (1999), is more burdensome that the 1997 version of the statute in effect at the time of the offenses, its application to Southwick violates the prohibition on ex post facto laws. Suiste, 261 Mont. at 253, 862 P.2d at 401. ¶28 We conclude, therefore, that Southwick’s sentence is facially illegal. The sentence is only valid “insofar as the power of the court extends and is invalid only as to the excess.” DeShields v. State, 2006 MT 58, ¶ 11, 331 Mont. 329, ¶ 11, 132 P.3d 540, ¶ 11 (citation omitted). Thus, the five year DOC commitment in each case was valid, but not the suspended portions following Southwick’s DOC commitment. ¶29 In the ordinary case we would remand to the District Court to re-sentence Southwick. However, the record reveals that Southwick completely discharged the legal portion of his commitments in June 2004. A petition to revoke a suspended sentence cannot be filed after the term of a sentence expires. Section 46-18-203(2), MCA. Southwick had discharged the maximum time he could have been committed to DOC before the petition to revoke was filed in 2005, and the District Court had no authority to revoke a suspended commitment that was illegally imposed. See Vance v. Acton, 2001 MT 243, ¶ 5, 307 Mont. 71, ¶ 5, 36 P.3d 881, ¶ 5. ¶30 Southwick has discharged his DOC commitments. The order revoking the suspended portion of Southwick’s commitments must be vacated. CONCLUSION ¶31 This case is remanded to the District Court for further proceedings in conformity with this Opinion. CHIEF JUSTICE GRAY, JUSTICES LEAPHART, COTTER and MORRIS concur. The State argues that both res judicata and the law of the case doctrine prevent us from addressing Southwick’s arguments. We have previously stated that, “[wjhether labeled res judicata or law of the case, the effect is the same,” because both doctrines prevent appellants from raising issues previously decided by the Court. State v. Van Dyken, 242 Mont. 415, 426, 791 P.2d 1350, 1356 (1990). Because we conclude that res judicata is inapplicable here, the law of the case doctrine is also inapplicable.
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CHIEF JUSTICE GRAY delivered the Opinion of the Court. ¶1 James P. Ellis appeals from a portion of the judgment entered by the Twenty-First Judicial District Court, Ravalli County, on his guilty plea to a felony criminal offense. We affirm. ¶2 The sole issue on appeal is whether the District Court erred in ordering Ellis to repay the costs of his appointed counsel because § 46-8-113, MCA, (temporary to June 30, 2006) [hereinafter, § 46-8-113, MCA] violates the equal protection clauses of the United States and Montana Constitutions. BACKGROUND ¶3 After accepting a guilty plea from Ellis to the felony offense of accountability for fraudulently obtaining dangerous drugs and ordering a presentence investigation report, the District Court held a sentencing hearing in March and April of 2006. The State of Montana recommended deferring imposition of sentence for two years, subject to conditions. Ellis objected to a recommended condition that he be ordered to repay the cost of his appointed counsel, arguing that Montana’s “recoupment statutes” violate his Fifth Amendment right to counsel. ¶4 The District Court deferred imposition of sentence for two years subject to conditions, one of which required Ellis to repay the costs of his appointed counsel, and entered judgment. Ellis appeals. DISCUSSION ¶5 Did the District Court err in ordering Ellis to pay the costs of his appointed counsel because § 46-8-113, MCA, violates the equal protection clauses of the United States and Montana Constitutions? ¶6 We note that the State raises threshold issues. We address those matters briefly before turning to the issue Ellis presents. ¶7 The State initially argues we should not consider the issue raised by Ellis on appeal because it represents a change of legal theory. The State is correct that we generally do not consider new issues raised for the first time on appeal. See e.g. State v. Buck, 2006 MT 81, ¶ 109, 331 Mont. 517, ¶ 109, 134 P.3d 53, ¶ 109; State v. Wetzel, 2005 MT 154, ¶ 13, 327 Mont. 413, ¶ 13, 114 P.3d 269, ¶ 13. The State’s argument, however, is totally without merit. The State is well aware that our jurisprudence has long permitted a defendant to challenge a sentence on the basis of illegality, even when no objection was made at the time of sentencing. See e.g. State v. Lenihan, 184 Mont. 338, 343, 602 P.2d 997, 1000 (1979). Under this jurisprudential authority, we review sentences for alleged unconstitutionality even absent objection on constitutional grounds in the district court. See State v. Garrymore, 2006 MT 245, 334 Mont. 1, 145 P.3d 946. The premise that a “constitutional” challenge to a sentence is a challenge to the “legality” of the sentence requires no further discussion; moreover, in the present case, Ellis objected to his sentence on constitutional grounds at the sentencing hearing, albeit under a different constitutional theory. We reject the State’s argument that we should not consider this issue. ¶8 The State also suggests, in one paragraph, that whether Ellis has established “standing to bring his equal protection challenge should be considered.” It cites to State v. Webb, 2005 MT 5, ¶ 28, 325 Mont. 317, ¶ 28, 106 P.3d 521, ¶ 28, and State v. Thaut, 2004 MT 359, ¶¶ 16-23, 324 Mont. 460, ¶¶ 16-23, 103 P.3d 1012, ¶¶ 16-23, for the usual standing requirement that a party must clearly allege past, present or threatened injury to property or to a civil right, and the alleged injury must be distinguishable from the injury to the public generally. The State says that, because Ellis has not been held in civil contempt, imprisoned or otherwise prosecuted for default in payment under authority of the recoupment statutes, he lacks standing to raise the constitutional issue on appeal. ¶9 Ellis points out that he has suffered (and he may still be suffering) economic harm as a result of being ordered to repay these costs. He asserts standing pursuant to Thaut, and we agree. Ellis has established present injury-the District Court’s order to repay $2,398 in costs of counsel constitutes “direct economic injury.” See Thaut, ¶ 16 (citation omitted). We conclude Ellis has standing to challenge imposition of the repayment condition as violative of equal protection principles. ¶10 We turn now to the issue presented by Ellis, namely, whether the District Court erred in ordering him to repay the costs of his appointed counsel because § 46-8-113, MCA, violates the equal protection clauses of the United States and Montana Constitutions. Our review of questions of constitutional law is plenary. Thaut, ¶ 12 (citation omitted). The equal protection clauses of both the United States and Montana Constitutions prohibit laws which impermissibly classify individuals and treat them differently on the basis of that classification. State v. Davison, 2003 MT 64, ¶ 10, 314 Mont. 427, ¶ 10, 67 P.3d 203, ¶ 10 (citation omitted). ¶11 In addressing an equal protection challenge, we first identify the classes involved and determine whether they are similarly situated. Farrier v. Teacher’s Retirement Bd., 2005 MT 229, ¶ 15, 328 Mont. 375, ¶ 15, 120 P.3d 390, ¶ 15 (citation omitted). If so, we determine the appropriate level of scrutiny to apply: strict scrutiny for laws affecting fundamental rights, intermediate scrutiny for laws conferred by the Montana Constitution but not found in the Declaration of Rights, or rational basis if neither strict scrutiny nor intermediate scrutiny applies. Farrier, ¶ 16; Davison, ¶¶ 10-11. ¶12 Section 46-8-113, MCA, provides: Payment for court-appointed counsel by defendant. (1) The court may require a convicted defendant to pay the costs of court-appointed counsel as a part of or a condition under the sentence imposed as provided in Title 46. (2) Costs must be limited to reasonable compensation and costs incurred by the court-appointed counsel in the criminal proceeding. (3) The court may not sentence a defendant to pay the costs of court-appointed counsel unless the defendant is or will be able to pay them. In determining the amount and method of payment of costs, the court shall take into account the financial resources of the defendant and the nature of the burden that payment of costs will impose. (4) A defendant who has been sentenced to pay costs may at any time petition the court that sentenced the defendant for remission of the payment of costs or of any unpaid portion of the costs. If it appears to the satisfaction of the court that payment of the amount due will impose manifest hardship on the defendant or the defendant's immediate family, the court may remit all or part of the amount due in costs or modify the method of payment. Section 46-8-115, MCA, provides that default in payment of costs ordered under § 46-8-113, MCA, may be treated as contempt of court. However, a sentencing court must give the defendant an opportunity to show the default was not attributable to an intentional refusal to obey the court order or to make a good faith effort to make the payment before the court may impose imprisonment for the contempt. Imprisonment cannot exceed one day for each $25 owed, with a 30-day maximum for a misdemeanor offense and a one- year maximum in any other case. See § 46-8-115(3), MCA. ¶13 On appeal, Ellis contends the above-referenced recoupment statutes violate his right to equal protection because they strip indigent defendants of protections against imprisonment for debt which are afforded to similarly-situated nonindigent criminal defendants and civil judgment debtors. In arguing that the recoupment statutes violate principles of equal protection as between him and a civil judgment debtor, Ellis relies on James v. Strange, 407 U.S. 128, 92 S. Ct. 2027 (1972). ¶14 In James, the United States Supreme Court ruled that a Kansas recoupment statute violated the Equal Protection Clause of the United States Constitution. The Kansas statute provided that indigent defendants automatically were liable to repay costs of their appointed counsel and that sums unpaid for 60 days “shall become a judgment in the same manner and to the same extent as any other judgment under the code of civil procedure.” The remedy provided under the Kansas statute for failure to repay the cost of appointed counsel did not, however, grant the defendant exemptions from execution available to civil judgment debtors. James, 407 U.S. at 129, 135, 92 S. Ct. at 2029, 2031-32. The Supreme Court held that the Kansas statute relating to indigent defendants “embodies elements of punitiveness and discrimination which violate the rights of citizens to equal treatment under the law.” James, 407 U.S. at 142, 92 S. Ct. at 2035. ¶15 We observe that the Supreme Court noted in James, 407 U.S. at 133, 92 S. Ct. at 2030, that state recoupment laws differ significantly. As a result, it declined to make any broad pronouncement on the general validity of such recoupment laws. ¶16 Two years later, the Supreme Court upheld Oregon’s recoupment statute in Fuller v. Oregon, 417 U.S. 40, 94 S. Ct. 2116 (1974). The Court held that the Oregon statute, which retained all exemptions afforded to civil judgment debtors and provided the defendant the opportunity to show that recovery of legal defense costs would impose hardship, did not violate the Equal Protection Clause of the United States Constitution. Fuller, 417 U.S. at 49, 94 S. Ct. at 2123. Inasmuch as the statute applied to indigent defendants but not to defendants who retained counsel, the Supreme Court reasoned that only the indigent had been provided counsel by the state in the first place. It stated, “[ulnder Oregon’s recoupment statute revocation of probation is not a collection device used by the State to enforce debts to it, but is a sanction imposed for ‘an intentional refusal to obey the order of the court.’ ” Fuller, 417 U.S. at 48, 94 S. Ct. at 2122. The Court also stated the applicability of the Oregon statute to persons convicted-and not to those not convicted-was rational and reflected “no more than an effort to achieve elemental fairness.” Fuller, 417 U.S. at 50, 94 S. Ct. at 2123. ¶17 Under the Montana recoupment statutes, like the Oregon statute in Fuller and unlike the Kansas statute in James, a court may not sentence a defendant to pay the costs of court-appointed counsel unless the court determines the defendant is or will be able to pay them. See § 46-8-113(3), MCA. Nor do the Montana statutes provide that counsel costs shall become a judgment in the same manner as other civil judgments, as did the Kansas statute. Moreover, a Montana defendant sentenced to pay these costs may at any time petition the court for remission of the payment of costs on grounds that it will impose manifest hardship on the defendant or defendant’s immediate family. Section 46-8-113(4), MCA. We previously have observed that Montana’s recoupment statutes are similar to the Oregon statute recognized by the Supreme Court as permissible under constitutional equal protection principles. See State v. Farrell, 207 Mont. 483, 491-92, 676 P.2d 168, 173 (1984). We conclude Ellis has not established that § 46-8-113, MCA, violates his right to equal protection under the United States Constitution. ¶18 We now consider Ellis’s claims under the Montana Constitution. Ellis correctly points out that-pursuant to Farrier, ¶ 14, citing Cottrill v. Cottrill Sodding Service, 229 Mont. 40, 42, 744 P.2d 895, 897 (1987)-Article II, Section 4 of the Montana Constitution provides more individual protection than does the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. ¶19 Our determination in Cottrill that the equal protection clause of Montana’s Constitution provides more protection than the federal clause was based on the language of the two clauses. See Cottrill, 229 Mont. at 42, 744 P.2d at 897. The federal Equal Protection Clause, contained in the Fourteenth Amendment to the United States Constitution, provides, “No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.” Montana’s equal protection clause provides: The dignity of the human being is inviolable. No person shall be denied 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. Mont. Const. art. II, § 4. ¶20 As stated above, a party claiming violation of the right to equal protection must first demonstrate that the law at issue discriminates by impermissibly classifying individuals and treating them differently based on that classification. Once the classification has been identified and it has been established that members of the different classes are similarly situated, we determine the appropriate level of scrutiny to apply. Davison, ¶ 10. ¶21 We recently rejected an equal protection claim on grounds the claimant did not identify similarly-situated classes which were treated differently. In Davison, the defendant claimed that his right to equal protection had been violated because the statutory penalty for operation of an unlawful clandestine drug laboratory-the offense of which he had been convicted-was greater than the statutory penalty for manufacture of dangerous drugs. He contended that, because the two statutes proscribed the same general conduct, they amounted to a classification of offenders and subjected them to unequal treatment. Pointing out that the operation of an unlawful clandestine laboratory and the manufacture of dangerous drugs are distinct and separate offenses and concern different conduct, we disagreed with Davison’s underlying premise and determined he had not identified a classification warranting equal protection analysis under any of the three recognized levels of scrutiny. Davison, ¶¶ 13-14. We ultimately concluded Davison had not established that individuals convicted under the two statutes were similarly situated. Davison, ¶ 17. ¶22 Contrary to Ellis’s claim, individuals ordered to pay recoupment costs as a condition of a felony criminal sentence are not similarly situated to civil judgment debtors. The process of adjudicating a civil judgment generally does not include determinations that the judgment debtor has committed a criminal offense against the State and its people, that the public purse has been expended to defend the judgment debtor or that the judgment debtor has the ability to pay the debt. We agree with and adopt the Supreme Court’s related determination that revocation of probation for failure to pay is “not a collection device used by the State to enforce debts to it but is a sanction imposed for ‘an intentional refusal to obey the order of the court.’ ” Fuller, 417 U.S. at 48, 94 S. Ct. at 2122. Consequently, we conclude Ellis has not established that § 46-8-113, MCA, results in different treatment of similarly-situated individuals. Therefore, we further conclude he has not established that § 46-8-113, MCA, creates an impermissible classification of two similarly-situated groups. ¶23 Ellis points out that he could be imprisoned for failing to pay the ordered costs of provided counsel, unlike a defendant who failed to pay retained counsel or any other civil debtor, who cannot be imprisoned for failure to pay a debt except under very limited circumstances. In this regard, he relies on Article II, Section 27 of the Montana Constitution, which generally prohibits imprisonment for debt, and § 27-16-102, MCA, which sets forth the limited circumstances in which a defendant in a civil action may be arrested. He asserts that, had this issue been raised in Fuller, the Court “would have no doubt found the Oregon recoupment statute unconstitutional.” While neither Ellis nor this Court can speculate with certainty what the Supreme Court might do, both the record before us and Fuller suggest otherwise. ¶24 We hold Ellis has failed to establish that § 46-8-113, MCA, violated his rights under either the United States or the Montana Constitution. We affirm the judgment of the District Court. JUSTICES WARNER, COTTER, RICE and LEAPHART concur.
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JUSTICE WARNER delivered the Opinion of the Court. ¶1 Mark Blair (Blair) appeals an order of the Fourth Judicial District Court, Missoula County, granting summary judgment to Mid-Continent Casualty Company (Mid-Continent) on Blair’s claim for declaratory relief. Mid-Continent cross-appeals a portion of the order. We affirm. ¶2 Blair raises three issues on appeal which we restate as a single issue: Did the District Court err in concluding that the allegations in Meadows West’s amended complaint were not an “occurrence” as defined in Mid-Continent’s policy? ¶3 On cross-appeal, Mid-Continent raises the issue of whether the amended complaint alleged “property damage” as defined in its policy. However, because we affirm the District Court’s grant of summary judgment dismissing Blair’s complaint, we need not discuss the cross-appeal. ¶4 Blair owns approximately eight acres in the Meadows West Landowners Association subdivision (Meadows West), near Missoula. The land is zoned residential. In 2003 he began excavating gravel on his property. Although Blair sold some of this gravel, he filed an affidavit claiming that any gravel extraction was incidental to development of the property for residential purposes. ¶5 In August 2003, Meadows West sued Blair seeking an injunction and restoration of the property. In the alternative, Meadows West sought damages for failure to submit any construction plans to the Meadows West architectural control committee and for Blair’s use of his property as a commercial gravel pit in violation of the subdivision’s restrictive covenants. The complaint alleged that Blair had constructed high earthen berms around the gravel pit which were unpleasant and disruptive to the views of other lot owners and that the gravel pit substantially decreased the value of the other homes in the subdivision. ¶6 The District Court initially restrained Blair from operating a gravel pit, but allowed him to continue developing his property if he submitted a development plan to the Meadows West architectural control committee. However, in a later order, the District Court restrained Blair from all further excavation and site work until after the trial of this case. ¶7 Meadows West then filed an amended complaint against Blair, again alleging injury to the owners of lots in the subdivision, a decrease in the value of other homes in the subdivision, and demanding damages. Blair tendered the defense and demanded coverage under his insurance policy (the Policy) with Mid-Continent. ¶8 Blair’s Policy with Mid-Continent provides, in pertinent part: We will pay those sums that the insured becomes legally obligated to pay as damages because of “bodily injury’ or “property damage” to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages. ¶9 The Policy goes on to say that it only applies to bodily injuries or property damage if, “The bodily injury or ‘property damage’ is caused by an ‘occurrence’ that takes place in the ‘coverage territory.’ ” “Occurrence” is defined in the Policy as: [A]n accident, including continuous or repeated exposure to substantially the same general harmful conditions. ¶10 After reviewing the amended complaint, Mid-Continent informed Blair that it had determined its Policy did not provide coverage and it would not defend him against Meadows West’s lawsuit because the pleadings did not allege damages stemming from bodily injury or property damage due to an occurrence, as defined by the Policy. ¶11 Blair hired an attorney to defend him against Meadows West’s lawsuit. He ultimately entered into a settlement agreement with Meadows West and its complaint against him was dismissed. He then brought the present declaratory judgment action against Mid-Continent seeking a judgment that he was entitled to recover the amount he paid in settlement of the Meadows West suit, his attorney fees incurred in the defense of that suit, and his attorney fees and costs incurred in this present action. Mid-Continent counterclaimed for a declaratory judgment that the Policy provided no coverage and it had no duty to defend Blair against Meadows West. Both parties moved for summary judgment. ¶12 The District Court granted Mid-Continent’s motion, concluding that Blair’s admitted intentional gravel operation did not constitute an occurrence as defined in the Policy, thus there was no coverage and Mid-Continent had no duty to defend Blair against the suit by Meadows West. ¶13 It is from this order that Blair has appealed. ¶14 The standard of review in appeals from summary judgment rulings is de novo. Williams v. Union Fid. Life Ins. Co., 2005 MT 273, ¶ 18, 329 Mont. 158, ¶ 18, 123 P.3d 213, ¶ 18. We apply the same criteria applied by the district court pursuant to M. R. Civ. P. 56(c). Williams, ¶ 18. The moving party must establish both the absence of genuine issues of material fact and entitlement to judgment as a matter of law. Hanson v. Water Ski Mania Estates, 2005 MT 47, ¶ 11, 326 Mont. 154, ¶ 11, 108 P.3d 481, ¶ 11. ¶15 Montana law is well-settled that an insurer’s duty to defend its insured arises when a complaint alleges facts which represent a risk covered by the terms of an insurance policy. Farmers Union Mut. Ins. Co. v. Staples, 2004 MT 108, ¶ 20, 321 Mont. 99, ¶ 20, 90 P.3d 381, ¶ 20 (citing Lindsay Drill. & Cont. v. U.S. Fid. & Guar. Co., 208 Mont. 91, 94, 676 P.2d 203, 205 (1984)). The insurance company must look to the allegations of a complaint to determine if coverage exists under an insurance policy, thus giving rise to the insurer’s duty to defend. Staples, ¶ 20 (citing Graber v. State Farm, 244 Mont. 265, 270, 797 P.2d 214, 217 (1990)). The duty to defend is independent from and broader than the duty to indemnify and it arises when a complaint against an insured alleges facts, which if proven, would result in coverage. Staples, ¶ 21 (citations omitted). Unless there exists an unequivocal demonstration that the claim against an insured does not fall within the insurance policy’s coverage, an insurer has a duty to defend. Staples, ¶ 22 (citing Insured Titles, Inc. v. McDonald, 275 Mont. 111, 116, 911 P.2d 209, 212 (1996). ¶16 The gist of this dispute is Blair’s claim that Meadows West’s amended complaint alleged facts that, if proven true, would be within the coverage provided by Mid-Continent’s Policy and, thus, Mid-Continent had a duty to defend him. ¶17 According to Blair, the District Court erred in its analysis of what constitutes an occurrence under the Policy. Blair does not deny that he intentionally removed gravel from his property. However, he claims that long-established Montana law provides that an intentional act is an occurrence under an insurance policy if the resulting injuries or damages were not the intended or expected result of the insured’s intentional conduct. Here, Blair claims that he did not intend to cause harm to neighboring property owners. Thus, according to Blair, the District Court erred when it determined his deliberate conduct could not constitute an occurrence as defined in the Policy. ¶18 As noted above in ¶ 9, the Policy in question limited what constitutes an occurrence to an “accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Under this definition, the proper focus is on whether Blair’s deliberate operation of removing gravel is covered-not whether he intended the resulting damages allegedly stemming from the operation. ¶19 Given this definition and its focus on Blair’s conduct, rather than the results of that conduct, Blair’s intentional actions in digging and removing gravel from his property, which gave rise to Meadows West’s complaints, was not accidental. The interpretation of an insurance contract’s terms must be according to their “usual, commonsense meaning as viewed from the perspective of a reasonable consumer of average intelligence not trained in law or insurance business.” Lee v. USAA Cas. Ins. Co., 2001 MT 59, ¶ 30, 304 Mont. 356, ¶ 30, 22 P.3d 631, ¶ 30. From the standpoint of the insured, the term “accident” reasonably refers to any unexpected happening that occurs without intention or design on the part of the insured. Safeco Ins. Co. of Am. v. Liss, 2000 MT 380, ¶ 36, 303 Mont. 519, ¶ 36, 16 P.3d 399, ¶ 36 (citing Black’s Law Dictionary at 15 (6th ed. 1990)). Blair deliberately moved gravel on his property, which caused the alleged damages. Unequivocally, this was no accident. ¶20 The cases cited by Blair in support of his argument are distinguishable. In those cases, the definition of what was covered by the policy at issue focused, in part, on the consequences of an act. For example, in N. W. Natl. Cas. Co. v. Phalen, 182 Mont. 448, 450, 597 P.2d 720, 721 (1979), the policy in question defined “occurrence” as an accident which results in bodily injury or property damage. However, unlike Mid-Continent’s Policy in question here, that policy considered the results of a deliberate action because in limiting the coverage it said that only injury which “[i]s either expected or intended from the standpoint of the insured” was excluded. Phalen, 182 Mont. at 450, 597 P.2d at 721. Likewise, the results of a deliberate action were necessarily considered by the Court in Lindsay Drilling, 208 Mont. at 95, 676 P.2d at 205, because the policy at issue defined “occurrence” as an accident which resulted in bodily injury or property damage “neither expected nor intended from the standpoint of the Insured.” Blair’s Policy with Mid-Continent does not state that the results of an intentional act, apart from the act itself, are to be considered in what is a covered occurrence. The policy unequivocally limits coverage to accidental happenings and, thus, its coverage is narrower than the policies interpreted in the cases Blair relies upon. ¶21 The order of the Fourth Judicial District Court, Missoula County, granting summary judgment to Mid-Continent is affirmed. JUSTICES NELSON, LEAPHART, MORRIS and RICE concur.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Nathan Rumph, individually and as owner of the Cross Ranch Mercantile and Biddle Store, Alex Rumph, Christian Nielsen, Mike Nielsen, and Tammy Nielsen (collectively, Appellants) appeal an order of the Sixteenth Judicial District Court, Powder River County, granting summary judgment to Farmers Union Mutual Insurance Company (FUMIC) on its claim for declaratory relief. We affirm. ¶2 Appellants raise the following issues on appeal: ¶3 1. Whether the District Court correctly determined that Nathan Rumph’s garage liability policy did not cover the vehicle accident that injured Christian Nielsen? ¶4 2. Whether the District Court erred by failing to find that FUMIC was estopped from denying coverage due to FUMIC’s delay in providing a defense of the Rumphs? ¶5 3. Whether questions of fact existed to preclude the District Court from entering summary judgment? FACTUAL AND PROCEDURAL BACKGROUND ¶6 Early in the morning on December 21, 2002, Alex Rumph was involved in a vehicle rollover accident resulting in severe injuries to Christian Nielsen. The uncontested facts indicate that the previous day, Alex had gone to a basketball game, then to a friend’s house, and later to a bowling alley to socialize. Around 11:00 p.m. that night, Alex traveled to a Christmas party at the Bales Ranch. The accident occurred at approximately 4:00 a.m. the following morning as Alex drove himself and three passengers, including Christian, home from the party in a pickup truck owned by Alex’s father, Nathan Rumph. The pickup was titled in Nathan’s name, but was used primarily by Alex. ¶7 The Nielsens filed an action against Alex, Nathan, and Nathan’s businesses for injuries sustained by Christian. The Nielsens’ amended complaint alleged claims for negligent entrustment against Nathan, negligence per se against the Biddle Store, Nathan, Alex, and Bales Ranch, and general negligence against Bales Ranch. The amended complaint also alleged negligent infliction of emotional distress suffered by Christian’s parents, Mike and Tammy Nielsen, against all co-defendants. ¶8 Nielsens’ amended complaint alleged that Alex had rendered the seatbelts in the rear seat of his pickup inoperable by installing two large speakers. Because the rear seatbelts were inoperable, the Nielsens alleged, the four occupants all had to ride unbelted in the front seat of the pickup on the night of the accident. The amended complaint also alleged that Alex was too intoxicated to safely drive his pickup when he left the Christmas party at Bales Ranch. The Nielsens and Rumphs eventually settled, the terms of which included a confession of judgment by the Rumphs, an assignment to the Nielsens of the Rumphs’ rights against their insurers, and a covenant by the Nielsens not to execute on the judgment. ¶9 Nathan Rumph maintained automobile liability insurance on the pickup truck through National Farmers Union Property and Casualty (NFU). Because Nathan also owned the Cross Ranch Mercantile, Biddle Store, a separate automobile repair business, and his own ranch, Nathan also maintained four FUMIC policies, providing coverage for the general store operation, property damage insurance for the ranch, liability coverage for the ranch, and garage coverage for the automobile repair business. The Rumphs presented the Nielsens’ complaint to both NFU and FUMIC, and NFU undertook defense of Nielsens’ suit. FUMIC denied coverage and initially refused to provide a defense to the Rumphs. ¶10 The Rumphs’ attorney, Brad Anderson, thereafter discovered certain additional facts he believed brought the accident under Nathan’s Commercial Lines Garage Policy. Through the course of multiple letters to FUMIC’s counsel, Mr. Anderson alleged that the seatbelts in Alex’s pickup had been disabled in Nathan’s garage with Nathan’s tools and materials. In those letters Mr. Anderson also characterized Alex, who installed the speakers in his own truck, as an employee of the garage, and contended that the pickup was used for garage-related errands. Appellants argue those facts brought any use of the pickup under the garage policy. However, none of those facts were included in the Nielsens’ amended complaint. ¶11 Ultimately, FUMIC accepted the Rumphs’ defense under a reservation of rights and filed this declaratory judgment action in the District Court. Appellants counterclaimed for declaratory relief to enforce the Rumphs’ rights under the four policies, and also alleged breach of contract, violations of the Unfair Claims and Settlement Practices Act, and violation of § 33-18-201, MCA, for misrepresenting that FUMIC’s attorney was actively working on the case, when his work was allegedly minimal. FUMIC responded that none of Nathan’s four FUMIC policies provided coverage for Christian Nielsen’s injuries. Appellants ultimately conceded that the general store’s liability policy and the ranch’s property and liability policies did not provide coverage for Christian’s injuries, but maintained that the accident fell within the Commercial Lines Garage Policy because the accident arose from “garage operations.” The District Court disagreed and granted summary judgment to FUMIC on its declaratory judgment action. The District Court then granted FUMIC summary judgment on Appellants’ counterclaims. This appeal followed. STANDARD OF REVIEW ¶12 We review a district court’s decision to grant summary judgment de novo. Farmers Union Mut. Ins. Co. v. Staples, 2004 MT 108, ¶ 18, 321 Mont. 99, ¶ 18, 90 P.3d 381, ¶ 18. Pursuant to M. R. Civ. P. 56, we apply the same criteria as that applied by the district court: the moving party must establish the absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Staples, ¶ 18. The burden then shifts to the non-moving party to establish, by more than mere denial or speculation, that a genuine issue of material fact exists. Staples, ¶ 18. DISCUSSION ¶13 1. Did the District Court correctly determine that Nathan Rumph’s garage liability policy did not cover the vehicle accident that injured Christian Nielsen? ¶14 “Montana law is well-settled that an insurer’s duty to defend its insured arises when a complaint alleges facts which represent a risk covered by the terms of an insurance policy.” Blair v. Mid-Continent Cas. Co., 2007 MT 208, ¶ 15, 339 Mont. 8, ¶ 15, 167 P.3d 888, ¶ 15 (citing Staples, ¶ 20). “The insurance company must look to the allegations of a complaint to determine if coverage exists under an insurance policy, thus giving rise to the insurer’s duty to defend.” Blair, ¶ 15 (citing Staples, ¶ 20). The duty to defend is independent from and broader than the duty to indemnify, and arises when a complaint alleges facts, which if proven, would result in coverage. Staples, ¶ 21. An insurer must defend unless there exists an unequivocal demonstration that the claim against the insured does not fall under the policy’s coverage. Staples, ¶ 22 (citation omitted). ¶15 At issue before the District Court was the proper interpretation of Nathan Rumph’s Commercial Lines Garage Policy, and more specifically, that section entitled “Other than Covered Autos.” Appellants argue the injuries suffered by Christian Nielsen arose from “Garage Operations” as defined within that section. ¶16 Nathan Rumph’s garage policy provides, in pertinent part: We will pay all sums an “insured” legally must pay as damages because of “bodily injury” or “property damage” to which this insurance applies caused by an “accident” and resulting from “garage operations” other than the ownership, maintenance or use of covered “autos.” The policy goes on to define an “insured” as the owner of the policy and the owner’s partners, employees, directors or shareholders while acting within the course and scope of their duties. The policy defines “garage operations” as “the ownership, maintenance or use of locations for garage business and that portion of the roads or other accesses that adjoin these locations.... ‘Garage operations’ also include all operations necessary or incidental to a garage business.” It is under the final clause of that definition, regarding “operations necessary or incidental to a garage business,” that Appellants argue the accident involving Christian Nielsen is covered. Alternatively, Appellants argue that the clause is ambiguous and should be construed in favor of coverage. ¶17 Throughout their brief, Appellants argue that the Nielsens’ amended complaint, when considered “together with” or “coupled with” the facts Mr. Anderson later supplied to FUMIC’s counsel, establishes that Alex Rumph’s disabling of the seatbelts was a “garage operation.” However, under this Court’s well-settled law, Appellants’ coverage argument cannot be considered as it is presented herein. The Nielsens’ amended complaint makes no reference to Nathan Rumph’s garage or to the fact that Alex allegedly disabled the seatbelts in that garage with the garage’s tools. The amended complaint also fails to allege that Alex was Nathan’s employee, or that the pickup was a “shop vehicle,” as Appellants now contend. Instead, the amended complaint only alleges that Alex disabled the seatbelts, and that he was intoxicated on the night of the accident. ¶18 It is irrelevant that the amended complaint “together with” additional facts may have triggered coverage under the garage liability policy. Montana law requires FUMIC to look to the allegations of the Nielsens’ amended complaint to determine if coverage existed. Staples, ¶ 20. FUMIC is not required to look outside the complaint to determine if there is coverage. Staples, ¶ 24. Indeed, in Staples we cautioned that “[ajlthough the insurer is free to look at facts beyond the allegations in the complaint, it does so at its own risk.” Staples, ¶ 24. Based on the facts alleged in the Nielsens’ amended complaint, FUMIC correctly determined that the accident was outside the garage coverage, as no reference was made to anything remotely “necessary or incidental to a garage business.” In other words, there was an “unequivocal demonstration” that the Nielsens’ claim was not covered by Nathan Rumph’s Commercial Lines Garage Policy. Staples, ¶ 22. ¶19 Because the amended complaint failed to allege any facts connecting Nathan Rumph’s automobile repair business to the accident that injured Christian Nielsen, we decline to address Appellants’ argument that the phrase “operations necessary or incidental to a garage business” is ambiguous. Accordingly, the District Court is affirmed. ¶20 2. Did the District Court err by failing to find that FUMIC was estopped from denying coverage due to its delay in providing a defense of the Rumphs? ¶21 Appellants argue FUMIC was estopped from denying coverage because it “first unreasonably refused to supply a defense [to the Rumphs] and then offered a late defense as it aggressively pursued a declaratory judgment action against its insured.” An insurer that unjustifiably refuses to defend is estopped from denying coverage. Staples, ¶ 28 (citations omitted). ¶22 While FUMIC may have been slow to the punch in providing a defense, that delay was justified given the absence of facts in the Nielsens’ first complaint indicating a covered event. The amended complaint also failed to allege facts bringing the claim within coverage. Because we hold that the Nielsens’ amended complaint unequivocally demonstrated that the Nielsens’ claim was not covered, no duty to defend arose and FUMIC was not estopped from denying coverage. ¶23 3. Did questions of fact exist to preclude the District Court from entering summary judgment? ¶24 Appellants’ final argument is that, even if FUMIC had no duty to defend, material questions of fact existed as to whether FUMIC conducted a prompt investigation, misrepresented facts, or delayed its denial of coverage. The third alleged error-that FUMIC delayed its denial of coverage-has been resolved under Issue 2, wherein we held that FUMIC’s delay was justified. ¶25 Appellants correctly argue that an insurer must conduct a reasonable investigation into claims based on all available information, § 33-18-201(4), MCA, and that such investigation must be “prompt.” Daily Ditches Irrigation Dist. v. National Sur. Corp., 234 Mont. 537, 541, 764 P.2d 1276, 1279 (1988). However, where the complaint clearly demonstrates that no coverage exists, an insurance company fulfills its duty to investigate by reading the complaint. Daily Ditches, 234 Mont. at 541-42, 764 P.2d at 1279. The Nielsens’ amended complaint clearly and unequivocally demonstrated that no coverage existed under the Commercial Lines Garage Policy. Therefore, FUMIC satisfied its duty to investigate by reading the amended complaint and thereafter denying coverage. ¶26 Finally, Appellants provide no support on appeal for their contention that FUMIC misrepresented facts, and as such, that argument is without merit. ¶27 The District Court correctly granted summary judgment to FUMIC on Appellants’ counterclaims. Because the Nielsens’ claim was not covered by any FUMIC policy, FUMIC is not liable for breach of contract or violations of the Unfair Claims and Settlement Practices Act. ¶28 Affirmed. JUSTICES WARNER, COTTER, LEAPHART and MORRIS concur.
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CHIEF JUSTICE GRAY delivered the Opinion of the Court. ¶ 1 Shawn Theodore Damon (Damon) appeals from the order entered by the Eighth Judicial District Court, Cascade County, revoking his suspended sentence and sentencing him to the Montana Department of Corrections for a 5-year period. We affirm. ¶2 Damon raises the following issues on appeal: ¶3 1. Did the District Court err in crediting Damon’s sentence with only a portion of the time he served while incarcerated prior to the revocation of his sentence? ¶4 2. Did the District Court err in failing to sufficiently state in its written disposition order its reasons for granting or denying credit against Damon’s sentence for the time which elapsed prior to the revocation of his sentence? BACKGROUND ¶5 In 2001, Damon was sentenced on a felony conviction to the Montana Department of Corrections (DOC) for 10 years, with 5 years suspended upon conditions, and on a misdemeanor conviction to the Cascade Comity Detention Center (Detention Center) for 6 months, the sentences to rim concurrently. He began serving the suspended portion of his sentence on June 8, 2005. Several weeks later, Damon was arrested and charged under a separate cause number with several offenses. He eventually pled guilty to one count of felony obstruction of justice in that case and, in January of 2006, he received a 10-year suspended sentence, with credit for the time he served-írom June 30 to November 2, 2005-in the Detention Center following his arrest. ¶6 On November 30, 2005, Damon was arrested for violating conditions of his probation imposed in this case and the State of Montana (State) petitioned the District Court to revoke the 5-year suspended portion of his original sentence based on the alleged violations. The District Court held a combined evidentiary and dispositional hearing on the State’s petition. It revoked Damon’s 5-year suspended sentence based on probation violations and sentenced Damon to a 5-year term with the DOC, with credit for 98 days of time served in the Detention Center after the arrest for the probation violations. The District Court refused to credit Damon’s sentence for “street time” during the probation period immediately following June 8, 2005, based on his early violation of his probation conditions, and denied Damon’s request for credit for time served during the period he was incarcerated after arrest for the charges in the separate cause number. The District Court subsequently entered its written disposition order and Damon appeals. STANDARD OF REVIEW ¶7 We review a criminal sentence for legality, determining whether the sentence is within statutory parameters. State v. Tracy, 2005 MT 128, ¶ 12, 327 Mont. 220, ¶ 12, 113 P.3d 297, ¶ 12 (citations omitted). DISCUSSION ¶8 1. Did the District Court err in crediting Damon’s sentence with only a portion of the time he served while incarcerated prior to the revocation of his sentence? ¶9 Section 46-18-203(7)(b), MCA, provides that [i]f a suspended or deferred sentence is revoked, the judge shall consider any elapsed time and either expressly allow all or part of the time as a credit against the sentence or reject all or part of the time as a credit. The judge shall state the reasons for the judge’s determination in the order. Credit must be allowed for time served in a detention center or home arrest time already served. Damon contends that the plain language of the final sentence of the statute required the District Court, upon revoking his suspended sentence, to credit his new sentence with all the time he spent incarcerated in the Detention Center during the period of suspension, regardless of the underlying reason for that incarceration. Stated differently, he asserts entitlement to credit for the time he served in the Detention Center following his arrest for the charges in the separate cause number. Damon cites to no Montana case law supporting his position or otherwise interpreting the statute on which he relies. ¶10 We recently addressed § 46-18-203(7)(b), MCA, in the context of crediting time served in incarceration against multiple revoked sentences. In Tracy, the district court sentenced Tracy in two separate Yellowstone County cases in 1999. In the first case, the sentence was two prison terms of 5 years each, all suspended. In the second case, on the same day, Tracy was sentenced to a prison term of two years, suspended. All three sentences were to run concurrently. Tracy, ¶¶ 6-7. In 2000, Tracy’s Yellowstone County sentences were revoked and the district court sentenced him in the first case to a 5-year commitment to the DOC, with four years suspended, and in the second case to a one-year DOC commitment, with the sentences to run concurrently. Tracy was transported to the Montana State Prison (MSP) to begin serving his sentences. Two months later, Tracy was transported to Cascade County where he was sentenced on a felony theft conviction to a 10-year commitment to the DOC, all suspended. That sentence was ordered to run concurrently with his prior Yellowstone County sentences. Tracy then returned to the MSP. Tracy, ¶ 8. He eventually was released on probation on March 6, 2003. Tracy, ¶ 9. ¶11 In December of 2003, the district court revoked Tracy’s 10-year suspended sentence on the Cascade County conviction and sentenced him to a 10-year prison term with 5 years suspended. The district court refused to credit Tracy’s sentence with the time he served in the MSP while incarcerated on the Yellowstone County convictions, concluding that the incarceration was not directly related to his Cascade County sentence. Tracy, ¶ 10. Tracy appealed, arguing that § 46-18-203(7)(b), MCA, required he be given credit on his Cascade County sentence for all time he served in the MSP on his concurrent Yellowstone County sentences. Tracy, ¶ 24. ¶12 In Tracy, we observed that, pursuant to § 46-18-401, MCA, when a sentencing court orders a sentence to run concurrently with another sentence the defendant already is serving, the two sentences merge. Tracy, ¶ 27. Consequently, when Tracy’s Cascade County sentence was ordered to run concurrently with the Yellowstone County sentences he already was serving, the Cascade County sentence merged with-and ran at the same time as-the Yellowstone County sentences. Thus, from the date the Cascade County sentence was imposed, it was necessary to credit all time served in detention on the Yellowstone County sentences against the suspended Cascade County sentence Tracy was serving simultaneously. Tracy, ¶ 28. We determined that “[w]ere we to hold otherwise, by the simple device of seeking revocation of some, but not all, of several concurrent sentences, the State in this case would have been able to, in effect, convert a concurrent sentence to a consecutive sentence contrary to law.” Tracy, ¶ 28. ¶13 In the present case, however, the parties agree that Damon’s 10-year suspended sentence for felony obstructing justice was ordered to run consecutively to his revoked 5-year suspended sentence for felony criminal endangerment. Thus, unlike the situation in Tracy, Damon’s revoked 5-year sentence does not merge with his 10-year suspended obstructing justice sentence; he must first serve the revoked 5-year sentence, then begin serving the 10-year suspended sentence. See § 46-18-401(1), MCA. ¶14 Pursuant to § 46-18-403(1), MCA, Damon received credit against his 10-year suspended sentence for the time he was incarcerated in the Detention Center between June 30 and November 2, 2005, as a result of his arrest for the obstruction of justice offense. Thus, when he begins serving that 10-year suspended sentence, the sentence will be reduced by that amount of time. Damon’s incarceration from November 30,2005, to March 7,2006, was directly related to his arrest for violating probation conditions of his 5-year suspended sentence, and he received credit against the revoked sentence for that time. Had the District Court credited Damon’s 5-year revoked sentence with the time he was incarcerated between June 30 and November 2, 2005, Damon would have received double credit for those days. Nothing in § 46-18-203(7)(b), MCA, entitles a defendant to additional credit against a revoked sentence for time served relating solely to a separate offense for which the defendant received a consecutive sentence credited with the same period of time served. We conclude the District Court correctly determined that Damon’s revoked sentence should be credited only with the time he served in incarceration between November 30, 2005, and March 7, 2006. ¶15 We hold that the District Court did not err in crediting Damon’s sentence with only a portion of the time he served while incarcerated prior to the revocation of his sentence. ¶16 2. Did the District Court err in failing to sufficiently state in its written disposition order its reasons for granting or denying credit against Damon’s sentence for the time which elapsed prior to the revocation of his sentence? ¶17 As stated above, § 46-18-203(7)(b), MCA, provides that [i]f a suspended or deferred sentence is revoked, the judge shall consider any elapsed time and either expressly allow all or part of the time as a credit against the sentence or reject all or part of the time as a credit. The judge shall state the reasons for the judge’s determination in the order. Credit must be allowed for time served in a detention center or home arrest time already served. Damon asserts that this provision requires a sentencing court to state in its written disposition order its reasons for allowing or rejecting credit for both “street time” and time served incarcerated. On that basis, he argues the District Court erred in its disposition order by not expressly stating why it did not credit Damon’s revoked sentence for the time he served in the Detention Center between June 30 and November 2, 2005. ¶18 In its disposition order the District Court stated Damon was to receive credit for 98 days time served, representing the time he was incarcerated in the Detention Center between November 30, 2005, and March 7, 2006, as a result of his arrest on probation violations. The court treated the remaining elapsed time, including the time Damon was incarcerated for his arrest on separate charges unrelated to his suspended sentence, as “street time” and denied credit against Damon’s revoked sentence for such street time due to his early violation of his probation conditions. We conclude that the District Court sufficiently stated its reasons for allowing and rejecting credit against Damon’s revoked sentence for the time which elapsed prior to the revocation. ¶19 We hold the District Court did not err by failing to sufficiently state in its written disposition order its reasons for granting or denying credit against Damon’s sentence for the time which elapsed prior to the revocation of his sentence. ¶20 Affirmed. JUSTICES NELSON, MORRIS, LEAPHART and RICE concur.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Appellant Farmers Cooperative Association (FCA) appeals the District Court’s order granting a motion to dismiss for failure to state a claim filed by Appellee Amsden, LLC (Amsden). We affirm. ¶2 We address the following issues: 1. Did the District Court err by dismissing FCA’s complaint pursuant to M. R. Civ. P. 13? 2. Did the District Court err by not converting Amsden’s motion to dismiss to a motion for summary judgment after considering FCA’s motion to consolidate? 3. Did the District Court err by denying FCA’s motion to consolidate? FACTUAL AND PROCEDURAL BACKGROUND ¶3 Amsden entered into a buy-sell agreement with FCA to purchase a gas station and convenience store in Broadus, Montana. The written agreement provided that the price included the real estate and assorted equipment. While the parties agree that Amsden paid the purchase price of the written agreement in full, FCA alleges that the parties also entered a separate oral agreement to purchase inventory and additional equipment. ¶4 FCA filed an action, denominated as Cause No. DV-38-2004-2367 (Action 2367), on December 27, 2004, suing Amsden for breach of contract. FCA alleged that Amsden failed to pay the entire purchase price and that Amsden owed FCA a total of $52,064.87-$49,566.60 for the real estate and $2,498.27 for the equipment identified in the agreement. During discovery, Amsden attempted to obtain information from FCA relating to possible claims arising from the purchase of inventory. FCA objected to this interrogatory, stating that it would “not lead to the discovery of admissible evidence.” ¶5 On December 22, 2005, more than a month after the deadline set by the District Court’s scheduling order to amend pleadings had passed, FCA moved to amend its complaint. FCA argued that amending was needed in order to accurately reflect the claims made in the original complaint. FCA contended that it would not change the nature of the cause of action or the amount of recovery sought. The District Court granted FCA leave to amend on January 10, 2006, for good cause shown and notwithstanding the expiration of the time for amendment of pleadings. ¶6 FCA’s first amended complaint sought recovery for Amsden’s failure to pay for inventory and supplies and not Amsden’s failure to pay the full agreement purchase price. Amsden objected to FCA’s motion to amend two days after the court granted it. The District Court recognized that Amsden’s objection was untimely, but nonetheless rescinded its order granting leave to amend and set a hearing regarding Amsden’s objections. Following the hearing, the court denied FCA’s motion for leave to amend on the basis that the motion was untimely and FCA had not shown good cause under M. R. Civ. P. 16(b) for the delayed amendment. Moreover, the court determined that the late amendment and FCA’s prior assertion that purchase of the inventory was not relevant to discovery would prejudice Amsden. ¶7 Amsden moved for summary judgment on the grounds that FCA’s original complaint did not sufficiently allege claims relating to payment for inventory. Amsden further argued that it had paid the full purchase price under the agreement. FCA did not contest these assertions. The District Court found that no substantial issues of material fact existed under the original complaint and granted Amsden’s motion for summary judgment on Action 2367. Amsden appealed, and we affirmed the District Court’s grant of summary judgment in Farmers Cooperative Association v. Amsden, LLC, 2007 MT 286, 339 Mont. 445, 171 P.3d 690. ¶8 However, prior to the entry of the District Court’s order dismissing Action 2367, FCA filed a separate complaint against Amsden, denominated as Cause No. DV-38-2006-2401 (Action 2401). Action 2401 alleged that Amsden had failed to pay for inventory and equipment sold pursuant to the same buy-sell agreement litigated in Action 2367. FCA again claimed that Amsden owed FCA a total of $52,064.87, the same amount alleged in Action 2367. In response to FCA’s complaint, Amsden submitted a motion to dismiss for failure to state a claim pursuant to M. R. Civ. P. 12(b)(6). Amsden argued that FCA’s complaint was barred by M. R. Civ. P. 13, stating that the inventory and equipment claim was a compulsory counterclaim that FCA should have raised in Action 2367. Accordingly, Amsden argued that because FCA failed to timely assert the claim in Action 2367, it was barred from review in Action 2401. FCA responded by filing a motion to consolidate the two actions. In this motion, FCA referenced Action 2367 in detail. The District Court held a hearing regarding the parties’ motions and considered the pleadings as well as FCA’s motion to consolidate before granting Amsden’s motion to dismiss for failure to state a claim upon which relief can be granted. The District Court also ruled that the motion to consolidate had been mooted by its dismissal of the action. FCA appeals. STANDARD OF REVIEW ¶9 We review de novo a district court’s ruling on a motion to dismiss for failure to state a claim pursuant to M. R. Civ. P. 12(b)(6). Meagher v. Butte-Silver Bow City-County, 2007 MT 129, ¶ 13, 337 Mont. 339, ¶ 13, 160 P.3d 552, ¶ 13. A motion to dismiss under M. R. Civ. P. 12(b)(6) has the effect of admitting all well-pleaded allegations in the complaint. Meagher, ¶ 13. The complaint is construed in the light most favorable to the plaintiff, and all allegations of fact contained therein are taken as true. Meagher, ¶ 13. The determination whether a complaint states a claim is a conclusion of law. Plouffe v. State, 2003 MT 62, ¶ 8, 314 Mont. 413, ¶ 8, 66 P.3d 316, ¶ 8. Additionally, a district court’s decision to dismiss a complaint on the basis of M. R. Civ. P. 13(a) is a conclusion of law. Zimmerman v. Connor, 1998 MT 131, ¶ 7, 289 Mont. 148, ¶ 7, 958 P.2d 1195, ¶ 7. A district court’s conclusions of law are reviewed to determine if interpretation of the law was correct. Plouffe, ¶ 8. DISCUSSION ¶ 10 1. Didl the District Court err by dismissing FCA’s complaint pursuant to M. R. Civ. P. 13? ¶11 FCA argues that the District Court erred by barring FCA’s complaint as a compulsory counterclaim that should have been brought in Action 2367, pursuant to M. R. Civ. P. 13, in response to Amsden’s counterclaim. FCA argues that there is “no applicable authority or reasonable interpretation of Rule 13 that supports the District Court’s ruling.” In sum, FCA asserts that compulsory counterclaims apply only to defendants and not plaintiffs. Furthermore, FCA implies that the District Court misapplied M. R. Civ. P. 13 because Rule 13 prompts application of the doctrines of res judicata and collateral estoppel, which are not “viable arguments” since a final judgment had not been filed in Action 2367. ¶12 However, Arnsden does not rely on res judicata or collateral estoppel. Rather, Amsden argues that when answering FCA’s complaint in Action 2367, it asserted compulsory counterclaims relating to “FCA’s failure to execute an indemnity agreement and a lease for signage in connection with the sale of the convenience store.” Amsden asserts that FCA’s current inventory and equipment claim arose from the sale of the convenience store and therefore must have been raised in Action 2367 as a compulsory counterclaim in FCA’s reply to Amsden’s compulsory counterclaims. Consequently, Amsden argues that FCA’s inventory and equipment claim is barred from litigation in Action 2401. While both parties offer general authority with regard to the interpretation of M. R. Civ. P. 13, neither cites to case authority which specifically has adopted the respective interpretation they encourage this Court to adopt. Application of Rule 13 to a pleading replying to a counterclaim is thus an apparent matter of first impression in Montana. ¶13 Compulsory counterclaims are governed by M. R. Civ. P. 13(a) which states in pertinent part: A pleading shall state as a counterclaim any claim which at the time of serving the pleading the pleader has against any opposing party, if it arises out of the transaction or occurrence that is the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction. The purpose of Rule 13 is to “avoid a multiplicity of suits by requiring the parties to adjust, in one action, their various differences growing out of any given transaction.” Zimmerman, ¶ 9. “If a ... counterclaim is compulsory it must be pleaded... [or it] will be barred.” Zimmerman, ¶ 12. ¶14 First, we note that there is no indication from the language of Rule 13(a) that only “defendants” must assert compulsory counterclaims. Rather, Rule 13(a) requires that the pleadings state as a counterclaim “any claim which at the time of serving the pleading the pleader has against any opposing party, if it arises out of the transaction or occurrence that is the subject matter of the opposing party’s claim ....” M. R. Civ. P. 13(a) (emphasis added). A “pleading” includes complaints, answers, replies to counterclaims, answers to cross-claims, third-party complaints, and third-party answers. M. R. Civ. P. 7(a). Accordingly, by the rule’s plain language, a “reply to a counterclaim” is a pleading and therefore triggers the need for the replying party to assert all counterclaims that arise out of the same transaction or occurrence that is the subject matter of the initial counterclaim. By not raising the claim, the party risks that Rule 13 will bar the claim in a subsequent action. Similarly, Federal Rule of Civil Procedure 13(a) (which mirrors M. R. Civ. P. 13(a)) bars a compulsory counterclaim not raised in an earlier action where “a responsive pleading, such as an answer, was required to be or was served in the earlier action.” 3-13 Moore’s Federal Practice, vol. 3, Civil § 13.15 (Matthew Bender, 2007) (emphasis added). ¶15 Here, Amsden answered FCA’s complaint in Action 2367 and simultaneously raised counterclaims arising from the same transaction and occurrence as FCA’s complaint. FCA then answered Amsden’s counterclaims but failed to raise any counterclaims in its response. Moreover, FCA’s effort to amend its complaint to include any other claims was denied by the District Court as untimely and prejudicial to Amsden. The claim that FCA now asserts is the same inventory and equipment claim that FCA attempted to add to the complaint in Action 2367 through amendment. FCA’s current claim arises from the same transaction (the buy-sell agreement) litigated in Action 2367 and which was the subject matter of Amsden’s counterclaim therein. Because a reply to a counterclaim is defined as a pleading, pursuant to M. R. Civ. P. 7, FCA’s reply to Amsden’s counterclaim in Action 2367 triggered M. R. Civ. P. 13, and FCA’s claim was compulsory. Because FCA failed to assert the claim in Action 2367, M. R. Civ. P. 13(a) bars FCA from raising it within Action 2401. Accordingly, we find that the District Court correctly interpreted M. R. Civ. P. 13(a) and properly dismissed Action 2401. ¶16 2. Did the District Court err by not converting Amsden’s motion to dismiss to a motion for summary judgment after considering FCA’s motion to consolidate? ¶17 FCA argues that the District Court erred when it considered FCA’s motion to consolidate and then granted Amsden’s motion to dismiss pursuant to M. R. Civ. P. 12(b)(6). FCA asserts that because the District Court considered information not contained in the complaint, the motion to dismiss should have been converted to a motion for summary judgment, pursuant to M. R. Civ. P. 56, and both parties given an opportunity to present additional evidence. ¶18 M. R. Civ. P. 12(b)(6) requires that if matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56, and all parties shall be given reasonable opportunity to present all material made pertinent to such motion by Rule 56. Where a district court considers any outside information not included in the plaintiff’s pleadings the court must convert a motion to dismiss to a motion for summary judgment and provide proper notice. See Plouffe, ¶¶ 14-15 (holding that the court erred in granting the motion to dismiss pursuant to M. R. Civ. P. 12(b)(6) without converting the motion to one for summary judgment after the court considered the defendant’s introduction of additional facts regarding previous actions brought by Plouffe against the defendant). Further, we have held it is error for a district court to convert a motion to dismiss to a motion for summary judgment without providing the parties with notice of its intention to do so. Plouffe, ¶ 15. Notice allows the parties a “ ‘reasonable opportunity to present all material made pertinent to the motion and avoid surprise.’ ’’ Plouffe, ¶ 15 (quoting Hoveland v. Petaja, 252 Mont. 268, 271, 828 P.2d 392, 393 (1992)). Moreover, this allows the parties to produce additional facts that create a genuine issue of material fact and preclude summary judgment. Plouffe, ¶ 15. ¶19 Here, FCA’s appeal stems from the July 12, 2006, hearing where the court granted Amsden’s motion to dismiss Action 2401. At the hearing, the parties discussed four motions: (1) Amsden’s motion to dismiss Action 2401; (2) FCA’s motion to consolidate, filed in Action 2401; (3) FCA’s motion to consolidate, filed in Action 2367; and (4) Amsden’s motion to dismiss FCA’s counterclaims in Action 2367. ¶20 Prior to hearing argument on any motion, the court reminded the parties that it was limited to considering only the pleadings when ruling on the motions to dismiss and would not consider other documents, including the pending motion for summary judgment filed in Action 2367. In addition to its initial warning, the court later twice discussed, during the hearing, its duty to consider only the pleadings when ruling on a motion to dismiss. In fact, before allowing Amsden to proceed with its arguments, the court requested that FCA object if Amsden referenced matters outside the scope of the motion to dismiss. FCA did not lodge any objections throughout the hearing. ¶21 Thereafter, Amsden discussed both motions to dismiss in tandem. FCA then responded to the motions to dismiss before discussing its motions to consolidate. Both parties recognized that because Actions 2367 and 2401 were occurring contemporaneously, they were inextricably intertwined. Thus, the arguments presented the court with information from both actions. The court concluded the hearing, stating that: I think I can consider the Motion to Consolidate as having been filed contemporaneously. I think I can look at something-look enough at this to understand what has gone on before in this case. And I’m going to grant the Defendant’s Motion to Dismiss in [Action 2401]. I don’t believe that this is properly before the Court-could be properly before the Court because of Rule 13. I believe the Plaintiff had an obligation to control the litigation, to set forth their litigation. This is piecemealing. It is a way to bring a number of different issues before the Court involving a general occurrence or transaction. I think that is prohibited by the rules, and because of that I’m granting the Motion to Dismiss. The court then denied FCA’s motions to consolidate and granted Amsden’s motion to dismiss FCA’s counterclaims in Action 2367. ¶22 While the motion to consolidate is not a pleading under M. R. Civ. P. 7(a), we cannot conclude that the District Court erred by considering the motion to consolidate when granting Amsden’s motion to dismiss. At the time of the hearing, both Action 2367 and Action 2401 were ongoing. Accordingly, the situation here is distinguishable from Plouffe where the defendant attached 151 pages of exhibits from previously concluded actions to its reply brief in support of its motion to dismiss. Plouffe, ¶ 15. The exhibits referenced “several prior causes of action brought by Plouffe and adjudicated in Defendant’s favor.” Plouffe, ¶ 5 (emphasis added). There, we concluded that the court erred by considering the exhibits while not converting the motion to dismiss into a motion for summary judgment. Plouffe, ¶ 20. Here, however, the corut was presented with four separate motions in one hearing that involved two ongoing cases relating to the same parties and the same transaction or occurrence. The court was aware of its duty to convert the motion if it considered outside information and the parties acknowledged that the two cases were closely related. In fact, the parties could not agree on which issue should be argued first, as each party contended that its motion would moot the opposing motion. As such, Amsden’s argument focused on the motions to dismiss and FCA’s argument focused on the motions to consolidate. Thus, the information presented was not about prior adjudicated cases, but rather about the procedural posture of the two cases currently pending before the court. ¶23 The policy behind converting a motion to dismiss into a motion for summary judgment when a court considers outside information, is to notify the parties of the additional evidence considered, allow ample opportunity for the parties to prepare information countering the additional evidence, and avoid surprise. See Plouffe, ¶ 15. These concerns do not exist in the present case. The parties were not surprised by the information and there was no need for further time to consider the issues presented. Both parties were aware that the hearing would discuss all four motions-two from Action 2367 and two from Action 2401. Further, FCA and Amsden were represented by the same counsel in both actions and all counsel were present at the hearing and aware of the hearing’s scope and the contents of all motions filed. Therefore, FCA cannot claim “surprise.” ¶24 Given the circumstances of this case, we conclude that the District Court did not err in considering the motion to consolidate without converting the motion to one for summary judgment prior to granting the motion to dismiss. ¶25 3. Did the District Court err by denying FCA’s motion to consolidate? ¶26 Lastly, FCA argues that because the District Court erroneously dismissed its claim pursuant to M. R. Civ. P. 13, the District Court erred by refusing to consolidate Actions 2367 and 2401. However, given our holding that the District Court did not err in its application of M. R. Civ. P. 13, and did not err by granting Amsden’s motion to dismiss, we do not reach the merits of this issue. ¶27 Affirmed. CHIEF JUSTICE GRAY, JUSTICES WARNER, COTTER and MORRIS concur.
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JUSTICE WARNER delivered the Opinion of the Court. ¶ 1 Appellants, Edward Lynes and Patricia Lynes (Lynes), along with High Country Rockin Roundup, L.L.C., (HCRR) brought suit by way of a third-party complaint against four HCRR members, Matt Helm, Myrna Mintyala, Christine DeBuff, and Darrell Tuss, (referred to collectively as Respondents). Lynes and HCRR allege that the Respondents acted unlawfully in advancing HCRR money and in later causing HCRR to repay this money to them. Lynes claim that repayment to Respondents rendered HCRR unable to pay a loan it had received from Western Security Bank (Bank). Lynes had pledged personal assets to the Bank to secure HCRR’s loan and were therefore forced to pay the loan themselves. Thus, Lynes claim they were personally damaged. Both Lynes and HCRR sought reimbursement from the Respondents for the amount Lynes paid the Bank. The District Court for the Tenth Judicial District, Fergus County, granted Respondents’ motion for summary judgment and Lynes appeal. We affirm. ISSUES ¶2 We restate and address the following issues on appeal: ¶3 1. Did the District Court err in granting Respondents’ motion for summary judgment based on the record before it? ¶4 2. Did the District Court err in not granting Lynes’ motion to compel discovery? ¶5 3. Did the District Court err in not granting Lynes’ motion for additional time to file further affidavits and documents in opposition to the Respondents’ motion for summary judgment? BACKGROUND ¶6 Lynes, along with the Respondents and several others, organized HCRR, a limited liability company established pursuant to The Montana Limited Liability Company Act, Title 35, Chapter 8, MCA. Edward Lynes initially acted as the manager of HCRR. HCRR sold twenty shares to its members for $2,000 each. In addition, the Bank loaned $40,000 to HCRR. Lynes signed a security agreement pledging personal assets to secure the Bank loan. ¶7 HCRR made arrangements to put on a large rock concert near Lewistown. However, ticket sales for the rock concert were poor. The day of the concert several of the bands scheduled to play demanded payment before they would perform. HCRR did not have enough money in its account to pay the bands. ¶8 Approximately nineteen members of HCRR met at the concert site. Lynes and the Respondents were present. At this meeting the members discussed whether HCRR should cancel the concert and refund purchased tickets or, should some Members advance additional money to HCRR so that it could pay the bands to perform. Edward Lynes stated he would not put any more money into HCRR. The members present decided to collect additional money from the Respondents so that the concert would take place. The members planned to make enough money from additional ticket sales and concession sales to cover the costs of the concert. None of HCRR’s members that were present, including Lynes, objected to this plan. The Respondents then paid $57,200 to the bands. It is unclear whether the new money was paid into the HCRR account and then paid out to the bands, or paid directly to the bands. There is, however, no contest that the money from Respondents was paid to the bands so that the concert sponsored by HCRR could take place. The show went on. ¶9 The day after the concert, some but not all of the members of HCRR held a meeting and elected a new board of directors. Tuss was elected president, Helm, vice president, Mintyala, co-secretary/treasurer, and DeBuff, co-secretary/treasurer. Edward Lynes seconded the motion to- elect Helm president. ¶10 The income from the concert was not enough to pay the costs of putting it on. The new board of directors calculated HCRR’s concert expenses to be $232,744.32 offset by income of $81,957.85, leaving HCRR $150,286.47 in debt. The members present at the meeting the day after the conceit proposed to pay HCRR’s debts by first reimbursing the Respondents the money they advanced at the eleventh hour to pay the bands. Next, local creditors would be paid. Finally, the Bank loan would be paid. Lynes were present at this meeting and did not object to the plan. ¶11 Later, Tuss, as president of HCRR, sent all of its members a letter requesting an additional investment of $7,500 from each of them. After receiving some additional investments, HCRR was able to pay its debts, except for $18,000 of the Bank loan. ¶12 HCRR’s note to the Bank went into default. The Bank threatened to foreclose on the assets Lynes had pledged to secure the loan. So, Lynes, who had by then re-taken charge of HCRR’s affairs, executed a new promissory note to the Bank in the approximate amount of $26,000, with HCRR as the debtor. The record does not reflect why the amount was increased from $18,000 to $26,000. Lynes also secured payment of this new note with a pledge of their personal assets. ¶13 Lynes sent a letter to all of HCRR’s members stating that the outstanding Bank loan needed to be paid by April 10,2003. HCRR did not receive additional money from its members and the loan again went into default. ¶14 The Bank brought suit against HCRR and Lynes to recover the $26,000 it loaned to HCRR, and to foreclose on Lynes’ property that secured the loan. Lynes and HCRR then filed a third-party complaint against Respondents, alleging that during the time that they were the managers of HCRR, they wrongfully caused it to pay to themselves the amount they had advanced just before the concert and that both HCRR and Lynes were damaged in that amount. Ultimately, Lynes personally paid the loan and the Bank dismissed its complaint. Lynes’ and HCRR’s third-party complaint against Respondents continued in litigation, and it is the dismissal of that third-party complaint that is the subject of this appeal. ¶15 Respondents moved for summary judgment, averring that as a matter of law they were not obligated to re-pay the amounts HCRR reimbursed them, and that they were not personally liable for HCRR’s debt to the Bank. The District Court granted Respondents’ motion. STANDARDS OF REVIEW ¶16 We review de novo a district court’s grant of summary judgment using the standard established by M. R. Civ. P. 56. The moving party must establish the absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Gliko v. Permann, 2006 MT 30, ¶ 12, 331 Mont. 112, ¶ 12, 130 P.3d 155, ¶ 12. Once a moving party has met its burden, the opposing party must present substantial evidence essential to one or more elements of its case in order to raise a genuine issue of material fact. Gliko, ¶ 12. We review a district court’s conclusions of law to determine whether they are correct. Gliko, ¶ 13. ¶17 We review a district court’s order granting or denying motions to compel for abuse of discretion. Citizen Advocates v. City Council, 2006 MT 47, ¶ 37, 331 Mont. 269, ¶ 37, 130 P.3d 1259, ¶ 37. ¶18 We will not disturb a district court’s decision to grant or deny an extension of time absent a manifest abuse of discretion. Easton v. Cowie, 247 Mont. 181, 183, 805 P.2d 573, 574 (1991). ISSUE ONE ¶19 Did the District Court err in granting Respondents’ motion for summary judgment based on the record before it? ¶20 Lynes first assert that the District Court erred in granting Respondents’ motion for summary judgment because the Respondents, as members and managers of HCRR, caused it to re-pay to themselves the money they advanced on the day of the concert. Lynes and HCRR claim that such re-payment constituted an unlawful distribution of capital contributions to members, which depleted HCRR’s assets to the point that it could not pay its debts. Thus, they argue Respondents are personally liable to HCRR for the amounts they caused it to pay to themselves. ¶21 Section 35-8-604(1)(a), MCA, provides that an LLC may not make distributions to its members if such distributions render the LLC unable to pay its debts. A distribution is defined in § 35-8-102(8), MCA, as a transfer of money, property, or other benefit to a member in that member’s capacity as a member of the company. The official comments to the Uniform Limited Liability Act, upon which Montana’s act is based, explain that distributions include payments made to members which constitute a repayment of the capital contributions a member made to the company. Official Comments, Uniform Limited Liability Act, Section 1202. It is not disputed that HCRR could not pay its debt to the Bank after re-paying Respondents. Thus, if the money Respondents paid to HCRR constituted capital contributions, the repayments to Respondents which rendered HCRR insolvent may be considered prohibited distributions. Section 35-8-605(1), MCA, provides that a member or manager of an LLC who votes for or assents to a distribution in violation of § 35-8-604 is personally liable to the company for the amount of the distribution. Therefore, Lynes argue, the law requires Respondents to refund the amounts they received to HCRR. This refund would have the effect of infusing enough capital into HCRR to reimburse Lynes for the amount they personally paid to discharge HCRR’s Bank loan. ¶22 To the contrary, Respondents assert that the repayment of the amounts they advanced HCRR to salvage the concert were loans they each personally made to HCRR, and the repayment of such loans was not contrary to law. We agree with Respondents. ¶23 Section 35-8-504(1), MCA, provides: Member's and manager's rights to payments and reimbursement. (1) A limited liability company shall reimburse a member or manager for payments made and indemnify a member or manager for liabilities incurred by the member or manager in the ordinary course of the business of the company or for the preservation of the company's business or property. (2) A limited liability company shall reimburse a member for an advance to the company beyond the amount of contribution that the member agreed to make. (3) A payment or advance made by a member that gives rise to an obligation of a limited liability company under subsection (1) or (2) constitutes a loan to the company upon which interest accrues from the date of the payment or advance. (4) A member is not entitled to remuneration for services performed for a limited liability company except for reasonable compensation for services rendered in winding up the business of the company. ¶24 The uncontested facts on the record clearly show that the Respondents advanced money to HCRR on the morning of the concert in the ordinary course of the company’s business. These payments were indisputably for the benefit of HCRR. There is also no dispute that Respondents advanced the money so that HCRR’s concert business could be preserved. The advances made by Respondents also had the effect of enabling HCRR to earn additional income from ticket and concession sales. Incidentally, these advances also had the effect of protecting Edward Lynes from personal liability on at least one contract with a band that he had personally guaranteed. Thus, based on the record before the District Court, these advances were loans to HCRR. Section 35-8-504, MCA. ¶25 It is true that Respondents were acting in managerial roles at the time they authorized HCRR to make the payments in question. Section 35-8-310, MCA. However, even in a managerial position, a member “may lend money to and transact other business with the company.” Section 35-8-310(6), MCA. Section 35-8-504(1), MCA, provides that an LLC must reimburse members for money loaned to the LLC. HCRR had both the obligation and the right to pay the Respondents. ¶26 Lynes and HCRR also claim that the record establishes a material issue of fact concerning whether Respondents breached their duty of loyalty to HCRR and acted as persons who had an interest adverse to the company when they repaid themselves before paying HCRR’s loan to the Bank. Section 35-8-310, MCA, provides in pertinent part: (1) The only fiduciary duties that a member owes to a member-managed company and the other members are the duty of loyalty imposed by subsection (2) and the duty of care imposed by subsection (3). (2) A member's duty of loyalty to a member-managed company and its other members is limited to the following: (b) to refrain from dealing with the company in the conduct or winding up of the company's business on behalf of a party or as a person having an interest adverse to the company!.] ¶27 The uncontested facts show that HCRR had more legitimate debt than it could pay. As Lynes acknowledge in their brief, Respondents’ decision on which debts should be paid first was simply a business decision. A debtor may pay one creditor in preference to another. Section 31-2-104, MCA. Under the present circumstances, Respondents did not breach their duty of loyalty to HCRR by paying themselves first. ISSUE TWO ¶28 Did the District Court err in not granting Lynes’ motion to compel discovery? ¶29 Lynes argue the District Court abused its discretion by failing to rule on their motion to compel discovery. They claim that if they had received the discovery requested, they would have had enough information to raise a material issue of fact precluding summary judgment. ¶30 The record indicates that on February 24,2005, Lynes, proceeding pro se, served discovery requests on Respondents. On April 21, 2005, Lynes filed a motion to compel discovery stating that the responses to their discovery requests were incomplete, and asked to postpone the trial. Lynes attached to their motion to compel a copy of the discovery requests. Respondents’ counsel filed a notice that he had served responses to Lynes’ discovery on April 21, 2005. On April 28, 2005, Lynes moved to vacate the trial that was then scheduled for June 29, 2005, again stating that Respondents’ discovery responses were incomplete. On May 2, 2005, Respondents supplemented their discovery responses. ¶31 The District Court minutes show that a hearing on all pending motions was held on May 6,2005. At this hearing, Lynes continued to complain that their discovery requests had not been adequately answered. Counsel for Respondents advised the District Court that he did not know how his clients’ discovery responses were deficient. There is no indication in the record just what information or documents Lynes had requested that Respondents had not provided. On May 9, 2005, the District Court entered a written order stating that Lynes must, by May 25, 2005, list the discovery questions and answers they were not satisfied with so that Respondents would know what it was that they desired. Lynes did not comply with the District Court’s order. We note that the discovery requests Lynes had served did not ask for the HCRR tax information described in ¶ 34 below, which they now claim would raise an issue of material fact. ¶32 As Lynes did not comply with the District Court’s order to state how Respondents’ discovery answers were deficient, and because the District Court actually considered and entered an appropriate order on Lynes’ motion to compel discovery, we conclude that the District Court did not abuse its discretion by not granting Lynes’ motion to compel. See Citizen Advocates, ¶ 37 (concluding that a district court did not abuse its discretion in determining that a motion to compel was too vague and lacked specificity needed to rule upon it.) ISSUE THREE ¶33 Did the District Court err in not granting Lynes’ motion for additional time to file further affidavits and documents in opposition to the Respondents’ motion for summary judgment? ¶34 Finally, Lynes and HCRR argue that the District Court erred in not giving them more time to respond to Respondents’ summary judgment motion. They claim that the 2002 United States partnership tax return filed by HCRR, which was rejected by the District Court as untimely, shows that the advances Respondents made to salvage the concert were treated by HCRR as capital contributions, not loans. Lynes and HCRR thus claim that these records establish that the reimbursement payments to Respondents were distributions. They argue that this information is sufficient to raise a material issue of fact and the District Court erred when it refused to consider it because it was not timely filed. ¶35 Lynes and HCRR filed their third-party complaint with the assistance of counsel on November 13, 2003. Respondents answered. At a scheduling conference on February 4,2004, the District Court set a deadline for the close of discovery on May 25, 2004, and a trial date of August 25, 2004. Approximately eight months later, and a month before the trial date, on July 21, 2004, counsel for Lynes, with their consent, moved to withdraw. Counsel requested that the District Court vacate the scheduling order so that Lynes could obtain new counsel. Two days later the District Court granted the motion and vacated the discovery deadline, the scheduling conference and the trial. ¶36 As required by Uniform District Court Rule 10, Lynes were given notice that they were required to retain new counsel or proceed in the litigation pro se, on September 13, 2004. On October 8, 2004, Lynes requested that they have an additional 30 days to retain counsel. They said they had contacted an attorney who was considering appearing on their behalf. The District Court granted Lynes’ request and re-set the scheduling conference for November 16, 2004. This scheduling conference was vacated when Lynes came without counsel. The District Court set another scheduling conference for December 9,2004. Lynes again appeared at the scheduling conference without counsel. The District Court, realizing that this litigation had to proceed whether or not Lynes obtained counsel, set a trial to begin over six months later, on June 29, 2005. ¶37 On April 25, 2005, Respondents moved for summary judgment, and filed a brief in support. ¶38 On April 28, 2005, Lynes moved to vacate the trial scheduled for June 29, 2005, stating that Respondents’ discovery responses were incomplete and that they were still trying to retain counsel. ¶39 As noted above, the District Court held a hearing on all pending motions on May 6, 2005. Lynes, still appearing pro se, again stated that they were seeking counsel and had contacted another lawyer in Great Falls. The presiding judge set the hearing on Respondents’ motion for summary judgment for June 2, 2005, advised Lynes that their response to Respondents’ motion for summary judgment was due on May 12, told them to advise the attorney who they were dealing with of such fact, and that if they did not have an attorney that they must respond themselves. ¶40 The District Court’s written order of May 9, 2005, confirmed the date by which Lynes’ response to the summary judgment motion was due, as well as the date of the hearing on the motion. ¶41 On May 12, still proceeding pro se, Lynes filed their response to the Respondents’ motion for summary judgment. The response and exhibits in support thereof did not contain the tax records of HCRR that they now claim would create a material issue of fact. Lynes appeared at the June 2, 2005, hearing on Respondents’ summary judgment motion pro se. Respondents’ counsel argued in favor of the motion. Lynes stated that they had found an attorney who could not be at the hearing and requested that it be postponed. The District Court denied the motion to continue stating that Lynes had since the previous fall to retain an attorney and Respondents had a right to have the case resolved. Lynes then presented their argument against the motion. At the conclusion of the hearing the District Court, sua sponte, granted Lynes ten more days to submit additional documents through the attorney they said they had retained. Lynes made no objection to the time limitation. That same day, again acting sua sponte, the District Court extended the time for filing additional documents by entering a written order giving the parties until June 20, 2005, to file additional arguments detailing specific, disputable facts which would preclude summary judgment. ¶42 On June 16,2005, Lynes appeared through their present counsel by way of a petition for additional time to supplement their response to Respondents’ summary judgment motion, to vacate the trial date, and to move for summary judgment. Lynes’ counsel also filed a memorandum opposing the summary judgment motion. HCRR’s 2002 tax return was not mentioned in these filings. ¶43 Respondents objected to any additional delay, arguing that the record before the court clearly showed that there were no material facts in dispute and that they would be even more prejudiced by further delay. Respondents also replied to the written arguments made by Lynes in opposition to their motion for summary judgment. ¶44 On June 27, 2005, after the District Court’s deadline for filing additional opposition to the motion for summary judgment had passed, Lynes and HCRR filed another brief in opposition to Respondents’ motion for summary judgment, and a motion for summary judgment in their favor. In these motions, for the first time, Lynes and HCRR attempted to bring to the District Court’s attention the tax records of HCRR which they claim show that the company’s payments to Respondents, reimbursing them the money they had paid to salvage the concert, were unlawful distributions that rendered HCRR insolvent. ¶45 By order of July 27, 2005, the District Court denied Lynes’ and HCRR’s motion for additional time and stated it would consider all documents and information concerning Respondents’ motion for summary judgment filed by June 20, 2005, but would not consider later filings concerning the motion. In denying the motion for additional time, the District Court recounted the history of delay by the Lynes, the admonishments they were given to proceed as ordered, and the prejudice to Respondents. Subsequently, on August 18, 2005, the District Court entered its order granting Respondents’ motion for summary judgment. ¶46 On appeal, Lynes offer no explanation of why the tax records they claim the District Court erred by not considering were not presented in a timely fashion. They only say that they discovered them, and that they did not come from Respondents. They do not represent that these records of HCRR were not continuously in their possession from the time they filed their third-party complaint in November of 2003 until revealed on June 27, 2005. We also note that the copies of the tax records of HCRR that were rejected by the District Court as untimely indicate only that HCRR filed a partnership return signed by an accountant, which listed Lynes, not Respondents, as the designated tax matters partner. We affirm the District Court’s order denying consideration of these documents as untimely. Nevertheless, it is far from certain that they would be sufficient to raise a material issue of fact precluding'summary judgment. ¶47 In this instance, the litigation on Lynes’ third-party complaint took almost two years during which Lynes could have presented the tax records of HCRR they now claim would create an issue of material fact. We conclude that the District Court was correct in not letting the case languish. It set reasonable times for completion of discovery, heard motions as necessary, and fairly scheduled pre-trial proceedings. The District Court admonished Lynes that they must comply with court orders, and gave them latitude because they were proceeding pro se. In particular, the District Court advised Lynes that the Respondents’ motion for summary judgment needed to be answered in a timely fashion, and then granted them more time after the hearing to further respond. The District Court then extended the response time even further. Still, Lynes did not comply. Under these circumstances, we will not hold that the District Court manifestly abused its discretion by not considering documents and arguments submitted after the time allowed. Easton, 247 Mont. at 183, 805 P.2d at 574. CONCLUSION ¶48 The order of the District Court granting Respondents’ motion for summary judgment is affirmed. CHIEF JUSTICE GRAY, JUSTICES LEAPHART, MORRIS and RICE concur.
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JUSTICE NELSON delivered the Opinion of the Court. ¶1 John M. Phelps and John M. Phelps, P.C. (collectively, “Phelps”) appeal from the order and final judgment of the District Court for the Eleventh Judicial District, Flathead County, granting summary judgment in favor of Sean S. Frampton and Sean S. Frampton, P.C. (collectively, “Frampton”) and dismissing Phelps’s complaint on the merits with prejudice. We affirm. ¶2 The sole issue on appeal is whether the District Court erred in granting summary judgment in favor of Frampton on each of the claims set forth in Phelps’s complaint. FACTUAL AND PROCEDURAL BACKGROUND The Partnership Agreement ¶3 The law firm of Hedman, Hileman & Lacosta, P.L.L.P. (“the Firm”) is a partnership located in Whitefish, Montana. The three original partners are Donald E. Hedman, William E. Hileman, Jr., and Susan M. Lacosta. Phelps joined the Firm as an equal partner in 1996. Frampton joined as an associate in 1996 and was admitted as an equal partner in 1999. ¶4 The operation of the Firm is controlled by a partnership agreement (“Agreement” or “Partnership Agreement”), which includes the 1980 formation agreement, a 1999 addendum, and a 2001 amendment. With respect to partnership draws, the Agreement provides, in pertinent part: 3. Partnership Draws: Except as otherwise provided herein, each partner will keep 50% (or such other percentage unanimously agreed upon by the partners) of the monthly fees paid and properly credited as his/her own. Such percentage shall be determined under the existing fee credit system using hourly rates for all attorneys with the remaining percentage to be retained in a partnership pool from which all overhead expenses will be paid. d) Any partners whose gross income reaches the sum of $200,000 in any calendar year shall be relieved of farther contributions to the partnership pool for the remainder of said year, and shall be entitled to keep 100% of the fees paid and properly credited as his/her own in excess of $200,000 for said year. In essence, a partner’s contribution to the partnership pool of 50% of his or her monthly fees is capped at $100,000 per year; thus, after a partner has contributed $100,000 in a given year, the partner retains 100% of the monthly fees paid and properly credited as his or her own. ¶5 With respect to work on contingent-fee cases shared among partners, the Agreement states: 6. Shared Work: In light of the policy [to develop specialties within the Firm] set forth in Paragraph 2 above, when two or more partners henceforth work together on a case, the following fee arrangement shall be followed: a. Hourly Cases:.... b. Contingent Fee Cases: Each partner is entitled to receive part of a fee earned based upon (1) each partner’s percentage of the total time spent on the case, or (2) a pre-determined percentage split which shall take into consideration such factors as origination of the case/client, etc. The Gallagher Case ¶6 On or about May 26, 2000, four individuals were killed in an automobile accident in which a side saddle fuel tank exploded. V.M., a relative of the deceased, worked as a clerk for Whitefish City Judge Bradley F. Johnson, who assisted V.M. in obtaining legal representation to protect her rights and interests and to pursue a claim against General Motors (“the Gallagher case”). In particular, Johnson recommended that V.M. contact Frampton. As Johnson later explained in a January 15, 2004 affidavit filed in the case at hand: I recommended that [V.M.] contact Sean Frampton, who she knew by virtue of his position as Whitefish City Prosecutor. [V.M.] generally distrusted lawyers, but I knew that she needed to have a legal representative to protect her rights and interests during a very unsettling time. I spoke with Sean about the need for representation and the scope of representation, to include a lawyer with the ability and expertise to pursue a claim against GM and to promptly preserve evidence (witness accounts and physical evidence). I felt that Seam had the legal acumen and the personal relationship with [V.M.] that was appropriate to the matters. I did not refer the case generally to the Hedman, Hileman and Lacosta law firm because [V.M.] did not like some of the other members of the firm. She did express her like for and trust in Sean, individually. ¶7 V.M. and the personal representative of the decedents’ estates thereafter met with Frampton about the Gallagher case and signed contingent-fee agreements with the Firm. In a June 7,2004 affidavit, V.M. stated: I did not refer this case to either John Phelps or the law firm of Hedman, Hileman, & Lacosta. Sean Frampton was the lawyer I sent the case to. I considered Sean Frampton to be our lawyer on this matter.... Although I knew Gene Hedman, Bill Hileman, Susan Lacosta, and John Phelps, I did not have a relationship with them. I knew Sean Frampton and had a relationship with him, and knew that I could trust him with this very important matter. [Paragraph break omitted.] ¶8 Frampton and Hileman agreed to work on the Gallagher case together and entered into an agreement regarding the sharing of work and splitting of fees on the case. They involved a Georgia law firm and another Montana law firm with more expertise in bringing this type of lawsuit. The Georgia firm agreed to pay all case expenses. It is undisputed that Phelps performed no legal services on the Gallagher case. ¶9 The Gallagher case settled in April 2002. As part of the settlement, the Georgia firm sent a check payable to “Hedman, Hileman & LaCosta, P.L.L.P.” for approximately $1.8 million (“the Gallagher fee”). Of this amount, 55% was allocated to Frampton and the other 45% was allocated to Hileman pursuant to their predetermined percentage split. Frampton and Hileman contributed to the partnership pool until they each reached the $100,000 contribution cap. In addition, they gave bonuses to Hedman, Phelps, and the Firm’s employees. (Apparently, Lacosta was not given a bonus because Hileman, to whom Lacosta was married, had indicated that she would receive a bonus from his 45% share of the Gallagher fee.) The amount of the bonuses given to Hedman and Phelps was $25,000 each, with no obligation to contribute any of this amount to the partnership pool. Phelps, however, was unsatisfied with this amount and returned his bonus. The Release ¶10 Believing that $120,000 would be a more appropriate amount for a bonus, Phelps retained counsel to represent him in his fee dispute with Frampton and Hileman. Phelps eventually settled with Hileman, and, as part of the settlement, Phelps released the Firm from any claims that he might have against it related to the allocation of the Gallagher fee. However, Phelps specifically reserved any such claims against Frampton. Phelps v. Frampton ¶11 Phelps initiated the instant lawsuit on March 17,2003, asserting six claims against Frampton. (Phelps subsequently filed an amended complaint; however, the substance of his allegations remained substantially the same.) Under Count I (“Breach of Written Contract”), Phelps alleged that partnership net profits are allocated under the Agreement pursuant to the number of partnership emits held by each partner and that he held one partnership unit out of the five partnership units outstanding (i.e., a 20% share) during the period at issue here. Phelps further alleged that a partner is entitled to a distribution of the fees that he or she has earned and that have been properly credited as his or her own, but that “[t]he Agreement does not, however, address or provide how a referral fee like the one received from [the Gallagher case] should be allocated.” Consequently, according to Phelps, Frampton “breached the Agreement” by “keep[ing] the disproportionately large share of the fee from [the Gallagher case],” and “Phelps is entitled to 20% of the fee wrongfully retained by Frampton in breach of the Agreement.” ¶12 Under Count II (“§§ 35-10-106(1) and 35-10-401(2), MCA”), Phelps alleged that “[b]ecause the Agreement does not address the allocation of a referral fee like the one received from [the Gallagher case], §§ 35-10-106(1) and 35-10-401(2), MCA require that the fee be shared equally by all [five] partners.” Under Count III (“Breach of Oral Contract - Promissory Estoppel”), Phelps alleged that Frampton had orally agreed with Phelps “to share a substantial portion of the fee that he received from [the Gallagher case] with the other Hedman firm partners,” that “[i]n reliance upon Frampton’s assurances, Phelps forewent another employment opportunity that was available to him,” and that “Frampton’s failure and refusal to pay Phelps a 20% share is a breach of Frampton’s oral contract.” Under Count IV (“Breach of Covenant of Good Faith and Fair Dealing”), Phelps alleged that “Frampton breached the covenant of good faith and fair dealing by claiming and retaining an extraordinarily large sum as his sole property and refusing to pay Phelps his share.” Under Count V (“Breach of Fiduciary Duty’), Phelps alleged that Frampton owed “a fiduciary duty to Phelps in connection with his appropriation of partnership property or opportunity” and that Frampton breached this duty “by claiming and retaining an extraordinarily large sum as his sole property and refusing to pay Phelps his share.” Lastly, under Count VI (“Constructive Trust”), Phelps alleged that “Frampton derived property or benefit by appropriation of partnership property or opportunity’ and that “Frampton would... be unjustly enriched if he were permitted to retain the extraordinarily large sum that he took as his sole property.” Thus, according to Phelps, “[a] constructive trust should be imposed on the fee to insure that Phelps receive [sic] a 20% share of it.” ¶13 On April 23, 2003, Frampton answered Phelps’s complaint and alleged, as an affirmative defense, that Phelps’s settlement with the Firm “constituted an accord and satisfaction and bars any further litigation of this matter.” Frampton also asserted a counterclaim for “abuse of process.” On January 9,2004, Frampton filed a motion styled as a motion to dismiss and/or for summary judgment on all counts of Phelps’s complaint. In his supporting brief, Frampton argued, among other things, that Phelps’s claims all arose out of the allocation of the Gallagher fee and, as such, were claims against the Firm, not Frampton. “[The Firm] distributed the fees. If the distribution was wrong as alleged by [Phelps]..., then it was [the Firm] which breached the [Agreement].” Phelps filed two briefs opposing Frampton’s motions, and Frampton filed a reply. ¶14 On September 28, 2004, following briefing and oral argument, the District Court granted summary judgment in favor of Frampton on all counts of Phelps’s complaint. (The court’s reasoning will be discussed below where relevant.) The court entered judgment on October 12, 2004, dismissing Phelps’s complaint on the merits with prejudice. Noting that Frampton’s counterclaim was still pending, however, Phelps filed a motion under M. R. Civ. P. 54(b) for the entry of final judgment on his claims, which the court granted on December 7, 2004. Phelps now appeals. STANDARD OF REVIEW ¶15 We review de novo a district court’s ruling on a motion for summary judgment, applying the same criteria of M. R. Civ. P. 56 as did the district court. Cole v. Valley Ice Garden, L.L.C., 2005 MT 115, ¶ 4, 327 Mont. 99, ¶ 4, 113 P.3d 275, ¶ 4. Rule 56(c) provides that a motion for summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” The evidence must be viewed in the light most favorable to the nonmoving party, and all reasonable inferences are to be drawn therefrom in favor of the party opposing summary judgment. Redies v. Attorneys Liability Protection Soc., 2007 MT 9, ¶ 26, 335 Mont. 233, ¶ 26, 150 P.3d 930, ¶ 26; Prindel v. Ravalli County, 2006 MT 62, ¶ 19, 331 Mont. 338, ¶ 19, 133 P.3d 165, ¶ 19. ¶16 The party moving for summary judgment bears the initial burden of establishing the absence of any genuine issue of material fact and entitlement to judgment as a matter of law. Prindel, ¶ 19; Hughes v. Lynch, 2007 MT 177, ¶ 8, 338 Mont. 214, ¶ 8, 164 P.3d 913, ¶ 8. If this burden is met, the burden shifts to the nonmoving party to establish with substantial evidence, as opposed to mere denial, speculation, or conclusory assertions, that a genuine issue of material fact does exist or that the moving party is not entitled to prevail under the applicable law. See Cole, ¶ 4; Klock v. Town of Cascade, 284 Mont. 167, 174, 943 P.2d 1262, 1266 (1997). The determination that the moving party is or is not entitled to judgment as a matter of law is a legal conclusion, which we review for correctness. Hughes, ¶ 8; Hi-Tech Motors v. Bombardier Motor Corp., 2005 MT 187, ¶ 32, 328 Mont. 66, ¶ 32, 117 P.3d 159, ¶ 32. DISCUSSION ¶17 Did the District Court err in granting summary judgment in favor ofFrampton on each of the claims set forth in Phelps’s complaint? I. The Breach of Written Contract Claim ¶18 In its order granting summary judgment in favor ofFrampton, the District Court determined that Judge Johnson referred, and V.M. brought, the Gallagher case to Frampton “individually,” not to the Firm generally, and that Phelps “had no role in the origination of the case or client.” The court further determined that allocation of the Gallagher fee was addressed and governed by the Agreement, that the Gallagher fee was a fee “earned,” and that Frampton was entitled to retain the amount of the Gallagher fee that exceeded his required contribution to the partnership pool (less the 45% to which Hileman was entitled). In addition, the court concluded that “any claim for breach of [the Agreement] must be with [the Firm]. As Phelps has reached a settlement with [the Firm], this part of the claim is moot.” Accordingly, the court granted summary judgment in favor of Frampton on Count I. ¶19 On appeal, Phelps challenges the District Court’s reasoning on a number of grounds. For instance, Phelps asserts that the language of the Agreement is “ambiguous” with respect to how the Gallagher fee should have been allocated, thus creating a genuine issue of material fact as to the partners’ intent; that Frampton did not “earn” the Gallagher fee as that term is used in the Agreement; that Frampton would not have become involved in the Gallagher case “but for” his relationship with the Firm and Phelps’s “key role” in preserving and maintaining the Firm’s relationship with the City of Whitefish; and that the Gallagher fee was “unique in the history of [the Firm]” and, thus, was “not the type of fee contemplated by or addressed in [the Agreement].” ¶20 Yet, all of these arguments pertain to the correctness of the allocation of the Gallagher fee, which was paid directly to the Firm and was then allocated through the Firm. Indeed, the substance of Phelps’s breach of written contract claim is that the Firm misallocated the fee. As alleged in his complaint: [The Gallagher fee] should have been allocated to the Hedman Firm partnership and been included in the calculation of the partnership’s net profits. Accordingly, Phelps is entitled to 20% of the fee wrongfully retained by Frampton in breach of the Agreement. Although Phelps has attempted throughout this litigation to portray the supposed “breach of written contract” as one perpetrated by Frampton, the allegations comprising Phelps’s breach of written contract claim do not identify an obligation under the Agreement and a corresponding breach of that obligation by Frampton. Rather, Phelps has consistently relied on provisions of the Agreement which, if his interpretations are correct, the Firm allegedly breached. ¶21 Phelps argues that because he specifically reserved his claims against Frampton when he settled with Hileman and released the Firm, he may now pursue a breach of written contract claim against Frampton. However, this argument misses the point, which is that Phelps’s breach of written contract claim-as that claim is framed in his complaint-is, in essence, one against the Firm, not Frampton. Phelps also quotes the following language from § 35-10-409(2), MCA: “A partner may maintain an action against the partnership or another partner for legal or equitable relief ....” But this language merely establishes that Phelps may maintain an action against Frampton, not that Phelps has, in fact, done so. ¶22 For the foregoing reasons, we conclude that Phelps’s claim for breach of written contract is directed at acts or omissions of the Firm. In this regard, we note that Phelps is now barred by the release he entered into with the Firm from bringing any claims against the Firm related to the allocation of the Gallagher fee. Although Phelps specifically reserved his claims against Frampton, Phelps may not employ Frampton as a stand-in defendant on a claim that is, in substance, against the Firm. Accordingly, we affirm the District Court’s grant of summary judgment in favor of Frampton on the Breach of Written Contract claim. II. The §§ 35-10-106(1) and -401(2), MCA, Claim ¶23 As noted above, Phelps relied on §§ 35-10-106(1) and -401(2), MCA, for purposes of Count II. The former provides, in pertinent part, that “a partnership agreement governs relations among the partners and between the partners and the partnership. To the extent the partnership agreement does not otherwise provide, this chapter governs relations among the partners and between the partners and the partnership.” Section 35-10-106(1), MCA (emphasis added). The latter provides, in pertinent part, that “[a] partnership shall credit each partner’s account with an equal share of the partnership profits.” Section 35-10-401(2), MCA (emphasis added). Phelps alleged that “the Agreement does not address the allocation of a referral fee like the one received from [the Gallagher case]” and that §§ 35-10-106(1) and - 401(2), MCA, therefore, “require that the fee be shared equally by all [five] partners.” ¶24 Responding to Phelps’s allegations, Frampton argued in his brief in support of his summary judgment motion that neither of these provisions applied here “because [the Firm] was operated pursuant to a Partnership Agreement that covered fee distribution.” In this regard, Frampton pointed out that Title 35, Chapter 10, MCA, applies only “[t]o the extent the partnership agreement does not otherwise provide,” § 35-10-106(1), MCA. ¶25 The District Court agreed with Frampton, stating that “it is clear that the $1.8 million is a fee earned, the allocation of which is governed by the Partnership Agreement.” The court reasoned that “[t]he Partnership Agreement reveals that the relationship among these lawyers allows a large fee-generating partner, such as one doing contingency work, to retain a disparate proportion of fees compared to a partner billing only hourly.” Accordingly, the court concluded that the Agreement “addresses fees such as the one at issue” and that the court, thus, did not need to consider the statutory provisions cited by Phelps. ¶26 Phelps contends that the District Court erred because “[the Agreement] did not address the allocation of a fee like that received from [the Gallagher case]. Thus, sections 35-10-106(1) and 35-10-401(2) govern.” Phelps supports this contention with two of the same theories mentioned above in the Breach of Written Contract discussion-namely, the language of the Agreement is ambiguous with respect to how the Gallagher fee should have been allocated, and the Gallagher fee was “unique” in the history of the Firm and, thus, is not the type of fee contemplated by or addressed in the Agreement. ¶27 Yet, even assuming, arguendo, that §§ 35-10-106(1) and -401(2), MCA, govern the allocation of the Gallagher fee, the Firm is the party that allegedly failed to comply with these statutory provisions. Thus, as with our resolution of Count I, we conclude that Count II of Phelps’s complaint-to the extent that it states a cause of action-is a claim against the Firm, not Frampton. Accordingly, we affirm the District Court’s grant of summary judgment in favor of Frampton on the §§ 35-10-106(1) and -401(2), MCA, claim. III. The Breach of Oral Contract - Promissory Estoppel Claim ¶28 As noted above, Phelps alleged under Count III that Frampton had orally agreed with Phelps “to share a substantial portion of the fee that he received from [the Gallagher case] with the other Hedman firm partners” and that “Frampton’s failure and refusal to pay Phelps a 20% share is a breach of Frampton’s oral contract.” The District Court concluded that Phelps had failed to establish the existence of an oral contract; thus, the court granted summary judgment in favor of Frampton on this claim. Phelps has not made a specific challenge to this ruling on appeal; we therefore will not address it further. IV. The Breach of Covenant of Good Faith and Fair Dealing Claim ¶29 Under our caselaw, “every contract, regardless of type, contains an implied covenant of good faith and fair dealing.” Story v. City of Bozeman, 242 Mont. 436, 450, 791 P.2d 767, 775 (1990). “In essence, the covenant is a mutual promise implied in every contract that the parties will deal with each other in good faith, and not attempt to deprive the other party of the benefits of the contract through dishonesty or abuse of discretion in performance.” Beaverhead Bar Supply v. Harrington, 247 Mont. 117, 124, 805 P.2d 560, 564 (1991) (citing Story, 242 Mont. at 450, 791 P.2d at 775); cf. Restatement (Second) of Contracts § 205 cmt. a (1981) (“Good faith performance or enforcement of a contract emphasizes faithfulness to an agreed common purpose and consistency with the justified expectations of the other party....”). ¶30 In addition, Montana’s Uniform Partnership Act (Title 35, Chapter 10, MCA) imposes an “obligation of good faith and fair dealing” on partners. Specifically, § 35-10-405(5), MCA, states, in pertinent part, that “[a] partner shall discharge the duties to the partnership and the other partners under this chapter or under the partnership agreement and exercise any rights consistent with the obligation of good faith and fair dealing.” This obligation is neither a fiduciary duty arising out of the partners’ special relationship nor a separate and independent obligation; rather, it is “an ancillary obligation” that is dependent on the existence of another duty or a right arising under the partnership agreement or Title 35, Chapter 10, MCA. See Unif. Partn. Act § 404 cmt. 4 (1992 with 1993 Proposed Revisions); see also Unif. Partn. Act § 404 cmt. 4, 6 U.L.A. 145 (1997). In other words, the obligation attaches to a partner’s discharge of a duty or exercise of a right under the partnership agreement or Title 35, Chapter 10, MCA. Thus, for example, partners have an obligation of good faith and fair dealing in the discharge of their fiduciary duties of loyalty and care (§ 35-10-405(2), (4), MCA) and in the discharge of their duty to furnish complete and accurate information concerning the partnership (§ 35-10-403, MCA). This obligation “may not be eliminated by agreement,” § 35-10-405(5), MCA; accord § 35-10-106(2)(e), MCA, “but the partners by agreement may determine the standards by which the performance of the obligation is to be measured if the standards are not manifestly unreasonable,” § 35-10-405(5), MCA. ¶31 Under Count IV of his complaint, Phelps alleged as follows: Montana common law and Section 35-10-405(5), MCA require that a partner discharge his duties to other partners and exercise all partnership rights consistent with the obligation of good faith and fair dealing. Frampton breached the covenant of good faith and fair dealing by claiming and retaining an extraordinarily large sum as his sole property and refusing to pay Phelps his share. The District Court ruled in favor of Frampton on this claim, reasoning as follows: “Once summary judgment in favor of [Frampton] on the question of an oral contract is determined, [Phelps’s] claim under Count IV must also fall to summary judgment. There can be no covenant of good faith and fair dealing in the absence of a contract.” ¶32 On appeal, Phelps argues that the District Court erred because “the obligation of good faith and fair dealing exists under both ... the Uniform Partnership Act and Montana common law.” First, “[p]artners under Montana law have an obligation of good faith and fair dealing regardless of whether they operate with a written partnership agreement” (citing §§ 35-10-106 and -405, MCA). Second, “Montana common law... recognizes the implied covenant [of good faith and fair dealing] in every contract” and “the parties here did have a contract-the partnership agreement.” ¶33 Frampton essentially concedes this point, stating that he “agrees with [Phelps] that the district court is not correct that the covenant of good faith and fair dealing does not apply. It does apply to the written agreement and to the partnership relationship.” We also agree with Phelps that the implied covenant of good faith and fair dealing and the obligation of good faith and fair dealing both applied here. With respect to the former, it is true that an implied covenant generally does not exist independently of an underlying agreement or a contract. See Black’s Law Dictionary 391 (Bryan A. Garner ed., 8th ed., West 2004) (defining “covenant” as “[a] formal agreement or promise, usu. in a contract”); Black’s Law Dictionary 392 (defining “implied covenant” as “[a] covenant that can be inferred from the whole agreement and the conduct of the parties”). Indeed, we have stated that “[the implied covenant of good faith and fair dealing] does not attach in the absence of an enforceable agreement.” GRB Farm v. Christman Ranch, Inc., 2005 MT 59, ¶ 15, 326 Mont. 236, ¶ 15, 108 P.3d 507, ¶ 15; see also Beaverhead Bar Supply, 247 Mont. at 124, 805 P.2d at 564 (“In order ... to recover ... on a theory of breach of the implied covenant, there must be an enforceable contract to which the covenant attends.”); McNeil v. Currie, 253 Mont. 9, 14, 830 P.2d 1241, 1244 (1992) (same); Cate v. First Bank (N.A.)-Billings, 262 Mont. 429, 432-33, 865 P.2d 277, 279 (1993) (same). Thus, the District Court was not incorrect in its statement that “[t]here can be no covenant of good faith and fair dealing in the absence of a contract.” Here, however, there was a contract-namely, the Agreement-and, as noted above, “every contract, regardless of type, contains an implied covenant of good faith and fair dealing,” Story, 242 Mont. at 450, 791 P.2d at 775. ¶34 Moreover, irrespective of the implied covenant of good faith and fair dealing in the Agreement, Frampton was required by § 35-10-405(5), MCA, to discharge his duties to the partnership and the other partners under Title 35, Chapter 10, MCA, and under the Agreement and to exercise any rights consistently with the obligation of good faith and fair dealing. Although this was not a separate and independent obligation, it was an ancillary obligation that applied whenever Frampton discharged his duties or exercised his rights. For these reasons, the District Court erred in concluding that a good faith and fair dealing requirement did not exist between Phelps and Frampton. ¶35 That said, Frampton maintains that the District Court ultimately reached the correct result under Count IV. He first posits that “if Frampton simply followed the provisions of the written Partnership Agreement, there can be no breach of the implied covenant of good faith and fair dealing.” We reject this contention outright. In Story, we held that “breach of an express contractual term is not a prerequisite to breach of the implied covenant [of good faith and fair dealing].” Story, 242 Mont. at 450, 791 P.2d at 775; accord Farris v. Hutchinson, 254 Mont. 334, 337, 838 P.2d 374, 375 (1992) (“[A] breach of the underlying contract is not a prerequisite to a breach of the implied covenant of good faith and fair dealing.”). Thus, even if Frampton did not breach any provisions of the Agreement, he still could have breached the implied covenant of good faith and fair dealing. Moreover, irrespective of the implied covenant and the Agreement, Frampton was required by § 35-10-405(5), MCA, to discharge his duties to the partnership and the other partners under Title 35, Chapter 10, MCA, and exercise any rights consistently with the obligation of good faith and fair dealing. Accordingly, we disagree with Frampton’s suggestion that he cannot be liable under Count IV if he “simply followed the provisions of the written Partnership Agreement.” ¶36 Alternatively, Frampton directs our attention to the following passage in Weldon v. Montana Bank, 268 Mont. 88, 885 P.2d 511 (1994): “Without some attempt by one party to ‘[use] discretion conferred by the contract to act dishonestly or to act outside the accepted commercial practices to deprive the other party of the benefit of the contract,’ it is questionable whether any breach of the covenant occurred, even if the conduct amounts to breaches of other common law obligations.” Weldon, 268 Mont. at 95, 885 P.2d at 515 (alteration in original) (quoting Shupak v. New York Life Ins. Co., 780 F. Supp. 1328, 1342 (D. Mont. 1991), in turn quoting Story, 242 Mont. at 450, 791 P.2d at 775). Based on Weldon, Frampton asserts that “there has been no evidence of dishonesty on the part of Frampton that would deprive Phelps of a benefit, if any, from the [Agreement]”; thus, Phelps’s claim fails. ¶37 Phelps, however, argues that “there are many disputed issues of material fact” on the question of whether Frampton’s conduct was consistent with reasonable standards of fair dealing in law partnerships. As one example, Phelps asserts that “Frampton on several occasions told Phelps that the fee from [the Gallagher case] would be shared among all partners. [Citation to Affidavit of John M. Phelps.] That, Frampton stated, is the way partners in a law firm treat one another, as opposed to attorneys who simply share expenses. [Citation to Affidavit of John M. Phelps.]” As another example, Phelps asserts that “Frampton held secret meetings with Hileman about the fee allocation in [the Gallagher case], which resulted in a deal being struck between the two of them (and by extension, Lacosta as Hileman’s wife). This was done without any notice to, or participation by the other partners.” Likewise, Phelps asserts that after the Gallagher case settled, Frampton and Hileman again “met secretly and decided entirely between themselves how [the Gallagher fee] would be distributed. As previously discussed, they distributed it in a manner not provided for under any provisions in the [Agreement].” In sum, Phelps states that “virtually all of the circumstances relating to the manner in which Frampton dealt with the fee from [the Gallagher case] are relevant to the issue of good faith and fair dealing” and that there are, therefore, genuine issues of material fact “as to whether Frampton acted in a manner consistent with his obligations of good faith and fair dealing as a law partner.” ¶38 Yet, even if there are genuine issues of material fact on the question of whether Frampton acted in a manner consistent with the obligation and the implied covenant of good faith and fair dealing, Phelps cannot withstand summary judgment on this ground alone. As noted earlier, the implied covenant is a mutual promise that the contracting parties will not attempt, through dishonesty or abuse of discretion in performance, to deprive each other of the benefits of the contract. Beaverhead Bar Supply, 247 Mont. at 124, 805 P.2d at 564; see also Richard A. Lord, Williston on Contracts vol. 23 § 63:22, at 506 (4th ed., West 2002) (“The duty embraces, among other things, an implied obligation that neither party shall do anything to injure or destroy the right of the other party to receive the benefits of the agreement.” (emphasis added)); Story, 242 Mont. at 450, 791 P.2d at 775 (“When one party uses discretion conferred by the contract to act dishonestly or to act outside of accepted commercial practices to deprive the other party of the benefit of the contract, the contract is breached.” (emphasis added)). We have also said that “ ‘[t]he covenant ... arise[s] out of the justifiable expectations of the parties.’ ” O’Bagy v. First Interstate Bank, 241 Mont. 44, 47, 785 P.2d 190, 192 (1990) (ellipsis and second alteration in original) (quoting Rowland v. Klies, 223 Mont. 360, 370, 726 P.2d 310, 317 (1986)); see also Story, 242 Mont. at 450, 791 P.2d at 775 (“Each party to a contract has a justified expectation that the other will act in a reasonable manner in its performance or efficient breach.”). In a similar vein, we have stated that w,e measure the nature and extent of the covenant by the parties’ “justifiable expectations.” See e.g. Hardy v. Vision Service Plan, 2005 MT 232, ¶ 13, 328 Mont. 385, ¶ 13, 120 P.3d 402, ¶ 13; Talley v. Flathead Valley Community College, 259 Mont. 479, 489, 857 P.2d 701, 707 (1993). ¶39 Thus, to maintain a claim for breach of the implied covenant of good faith and fair dealing, it is insufficient to present evidence that the other party acted in bad faith, e.g., by holding “secret meetings” or breaking promises. The claimant must also come forward with evidence sufficient to support the conclusion that as a result of the other party’s action, the claimant was deprived of a benefit or a justified expectation under the contract. Whether the claimant’s expectation was justified depends on the various circumstances that surround the parties’ relationship and thereby shape or give contour to the expectation in the first instance. See Williston on Contracts § 63:22, at 514. ¶40 These same principles apply to the obligation of good faith and fair dealing imposed on partners by § 35-10-405(5), MCA. In other words, to withstand summary judgment on a claim for breach of the obligation, the aggrieved partner must come forward with evidence sufficient to support the conclusions (1) that the other partner discharged a duty or exercised a right under the partnership agreement or Title 35, Chapter 10, MCA, inconsistently with the obligation of good faith and fair dealing and (2) that, as a result of this action, the aggrieved partner was deprived of a benefit or a justified expectation created by the partnership agreement or Title 35, Chapter 10, MCA. ¶41 Accordingly, as Frampton has suggested, it was necessary for Phelps, in resisting Frampton’s motion for summary judgment, to come forward with evidence sufficient to support the conclusion that as a result of Frampton’s alleged bad-faith conduct and violation of his duties under the Agreement or under the law, he (Phelps) was deprived of a benefit or a justified expectation created by the Agreement or Title 35, Chapter 10, MCA. In this regard, Phelps’s specific theoiy under Count IV is as follows: “Frampton breached the covenant of good faith and fair dealing by claiming and retaining an extraordinarily large sum as his sole property and refusing to pay Phelps his share.” Therefore, we must determine whether Phelps has demonstrated that he, in fact, was entitled to a share of the Gallagher fee. ¶42 The first question is whether the Agreement controlled the allocation of the Gallagher fee. Frampton relies on portions of Hedman’s, Hileman’s, and Lacosta’s depositions, as well as the language of the Agreement itself, for the proposition that the Agreement did, in fact, control the allocation of the Gallagher fee. The language of the Agreement-in particular, the provisions governing partnership draws and shared work on contingent-fee cases-supports Frampton on this point. As described above, the Agreement provides that when two or more partners work together on a contingent-fee case, “[e]ach partner is entitled to receive part of a fee earned based upon ... a pre-determined percentage split” (as in the Gallagher case). The Agreement also provides that “each partner will keep 50%... of the monthly fees paid and properly credited as his/her own” for the first $200,000 of gross income in a calendar year, and that a partner is “entitled to keep 100% of the fees paid and properly credited as his/her own in excess of $200,000 for said year.” ¶43 Phelps, however, insists that the Agreement did not apply to the Gallagher fee. As support, he presents a jumbled collection of arguments and factual assertions, in which we perceive the following two theories: (1) the pertinent terms of the Agreement are ambiguous, thus requiring a factual determination as to the partners’ intent, and (2) the Gallagher fee was not the type of fee contemplated by or addressed in the Agreement, thus requiring resort to § 35-10-401(2), MCA. We will address these theories in turn. ¶44 First, Phelps contends that the Agreement is ambiguous because it “provides no guidance” as to how to determine whether a particular fee is “properly credited as [the partner’s] own” and it does not define the term “earned.” We recently set forth the relevant law with respect to alleged contractual ambiguities in Mary J. Baker Revoc. Trust v. Cenex Harvest, 2007 MT 159, 338 Mont. 41, 164 P.3d 851: [W]hether an ambiguity exists in a contract is a question of law. If the language of a contract is unambiguous-i.e., reasonably susceptible to only one construction-the duty of the court is to apply the language as written. However, if the language of a contract is ambiguous, a factual determination must be made as to the parties’ intent in entering into the contract. The determination of whether an ambiguity exists in a contract is to be made on an objective basis. Thus, a conclusion of ambiguity is not compelled by the fact that the parties to a document, or their attorneys, have or suggest opposing interpretations of a contract, or even disagree as to whether the contract is reasonably open to just one interpretation. Rather, an ambiguity exists only if the language is susceptible to at least two reasonable but conflicting meanings. Baker Trust, ¶¶ 19-20 (citations and internal quotation marks omitted). ¶45 Here', Phelps has failed to establish that the terms “properly credited as [the partner’s] own” and “earned” are each susceptible to at least two reasonable but conflicting meanings. He references deposition testimony by Hedman, Hileman, and Lacosta regarding their individual understandings of the term “earned,” and he provides a dictionary definition of the term “earn,” from which he argues that “Frampton did not ‘earn’ a fee in excess of $900,000 by serving as local counsel, under any understanding of the term” and, thus, that “Frampton could not properly consider [the fee] ‘his own’ under the terms of the partnership agreement.” Yet, as just stated, an ambiguity does not exist in a contract simply because the parties to the document, or their attorneys, have or suggest opposing interpretations of the language contained therein. See Baker Trust, ¶ 20. At bottom, Phelps’s theory of ambiguity appears to be simply that, in his personal view, the terms “properly credited as [the partner’s] own” and “earned” do not apply to the Gallagher fee. Ambiguity, however, “does not exist just because a claimant says so.” Holmstrom v. Mutual Benefit Health & Accident Ass’n, 139 Mont. 426, 428, 364 P.2d 1065, 1066 (1961). Accordingly, we hold that Phelps has failed to establish that these terms are ambiguous. ¶46 Second, with respect to Phelps’s theory that the Gallagher fee was not the type of fee contemplated by or addressed in the Agreement, Phelps presents an extensive argument, well-supported by the record, that the Gallagher case, the circumstances under which Frampton became involved with the case, the manner in which the case was handled, and the size of the fee received were “unique” in the Firm’s history. From this, Phelps posits that the Agreement did not provide for how the Gallagher fee should be allocated; in other words, in Phelps’s view, the Agreement covered only “run-of-the-mill” or “garden-variety” cases and fees. Yet, Phelps cites nothing in the Agreement itself that supports his position. As Frampton points out, the Agreement recognized hourly fees and contingent fees; thus, it appears that Phelps would have us read into the Agreement an exclusion of fees in “unique” contingent-fee cases. This we may not do. See § 1-4-101, MCA (“In the construction of an instrument, the office of the judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted or to omit what has been inserted.”). Moreover, Phelps’s position is undermined by his own deposition testimony, which reflects that in late 2000 or early 2001, he proposed to the other partners that they adopt a different method of sharing fees in “large” cases-including the Gallagher case-but this proposal was never adopted. ¶47 Our review of the record convinces us that Phelps’s position here, as with his ambiguity argument, is based on his personal view that the Agreement does not contemplate or address the Gallagher fee. Phelps has offered no legal authority, no expert testimony, and no witnesses (aside from himself) supporting his interpretation of the Agreement. We therefore hold, based on Frampton’s showing and Phelps’s failure to overcome that showing, that the Agreement controlled the allocation of the Gallagher fee. ¶48 The second question is whether the Gallagher fee was correctly allocated pursuant to the terms of the Agreement. It is undisputed that the Gallagher case was a contingent-fee case and that Frampton and Hileman entered into an agreement which established a predetermined percentage split of the Gallagher fee. Phelps contends, however, that there is a factual question as to whether Frampton actually “earned” any of the Gallagher fee and, thus, whether the 55% share of that fee was “properly credited as [Frampton’s] own.” In this regard, Phelps acknowledges that Frampton did do some work on the Gallagher case, but he contends that “virtually all” of the work was handled by the Georgia firm and the other Montana firm. Yet, Phelps offers no basis in the Agreement for concluding that partners (such as himself) who indisputably perform no substantive work on a particular contingent-fee case are nevertheless entitled to shares of the contingency fee if the partners who do perform substantive work on the case just don’t do enough work. Moreover, Phelps offers nothing more than his own opinion that Frampton’s work on the Gallagher case was so minimal that it does not qualify as “eam[ing]” any of the Gallagher fee. ¶49 Phelps also asserts that he “played a key role in preserving and maintaining [the Firm’s] relationship with the City of Whitefish,” that “Frampton knew V.M. and [Judge Johnson] by virtue of his affiliation with [the Firm],” and that “but for Frampton’s relationship with [the Firm], neither the City Judge nor V.M. would have thought to get him involved in [the Gallagher case].” However, Phelps has not demonstrated that his role, if any, in the origination of the Gallagher case has any bearing here. Again, the Agreement provides that when two or more partners “work together” on a contingent-fee case, “[ejach partner is entitled to receive part of a fee earned based upon (1) each partner’s percentage of the total time spent on the case, or (2) a predetermined percentage split which shall take into consideration such factors as origination of the case/client, etc.” Here, it is undisputed that Phelps did not “work” on the Gallagher case; thus, the above-quoted provision of the Agreement did not entitle him to a percentage of the fee for any role he may have had in the “origination of the case/client.” ¶50 But to the extent that the Agreement can be read to ensure compensation to all partners who contribute to the origination of a case/client, the record reflects that Johnson had what he termed a “chance meeting” with Frampton outside Johnson’s office about a week after the May 26, 2000 accident and that Johnson thereafter recommended to V.M. that she contact Frampton. The record further reflects that Johnson referred V.M. to Frampton individually, since V.M. “did not like some of the other members of [the Firm].” Indeed, V.M. stated in her affidavit that she brought the Gallagher case to Frampton and considered him to be her attorney. In Phelps’s view, it seems, Frampton’s presence outside Johnson’s office in late May or early June of 2000 arid Johnson’s referral of V.M. to Frampton would not have occurred “but for” Frampton’s relationship with the Firm and Phelps’s “key role” in preserving and maintaining the Firm’s relationship with the City of Whitefish. However, Phelps offers no legal or factual support for this broad interpretation of the term “origination,” which would permit relatively attenuated actions on Phelps’s part to constitute “origination.” Certainly, if Phelps had presented concrete evidence that Johnson would not have referred V.M. to Frampton, or that V.M. would not have brought the Gallagher case to Frampton, but for the Firm’s relationship with the City of Whitefish, then this would be a different case. As it is, however, Phelps has come forward with only speculation. ¶51 For the foregoing reasons, we agree with Frampton and the District Court that the Agreement controlled the allocation of the Gallagher fee, that the Gallagher fee was a “fee earned” by Frampton and Hileman, and that 55% of the Gallagher fee was “properly credited as [Frampton’s] own.” Phelps has not presented substantial evidence demonstrating the existence of a genuine issue of material fact as to any of these points. Accordingly, we conclude, based on the record before this Court, that Phelps was not entitled to a share of the Gallagher fee and that any expectation he had of receiving such a share was not justified. ¶52 Phelps has not alleged any other benefit or justified expectation which he should have received pursuant to the Agreement or Title 35, Chapter 10, MCA, but which he did not receive because of bad faith or unfair dealing on the part of Frampton surrounding the allocation of the Gallagher fee. Thus, irrespective of whether Frampton actually engaged in such conduct as Phelps alleges, Phelps has failed to make the requisite showing that he was deprived of a benefit or a justified expectation as a result of that conduct. For this reason, his Breach of Covenant of Good Faith and Fair Dealing claim fails. ¶53 In sum, the District Court erred in concluding that a good faith and fair dealing requirement did not exist between Phelps and Frampton; however, the court ultimately reached the correct result on Count IV. We affirm a district court decision that is correct, regardless of the court’s reasoning in reaching that decision. Clark v. Eagle Systems, Inc., 279 Mont. 279, 286, 927 P.2d 995, 999 (1996). Accordingly, we affirm the District Court’s grant of summary judgment in favor of Frampton on Phelps’s Breach of Covenant of Good Faith and Fair Dealing claim. V. The Breach of Fiduciary Duty Claim ¶54 Under Count V, Phelps alleged that Montana common law and Section 35-10-405(2), MCA provides that Frampton owes a fiduciary duty to Phelps in connection with his appropriation of partnership property or opportunity. Frampton breached this fiduciary duty of loyalty by claiming and retaining an extraordinarily large sum as his sole property and refusing to pay Phelps his share. The District Court disposed of this claim as follows: “[A]s the Court has determined above that the allocation of the Gallagher fee comported with the Partnership Agreement, there is no evidence that [Phelps] can bring forward to raise a question of material fact that Frampton violated any provisions of the duty of loyalty to his partners.” ¶55 On appeal, Phelps argues that the District Court erred because “there are many disputed issues of fact concerning whether Frampton ‘earned’ over $900,000 by his limited work on [the Gallagher case], and whether he properly took the fee [as] ‘his own.’ ” We rejected these same contentions in the context of our discussion of Phelps’s Breach of Covenant of Good Faith and Fair Dealing claim (Count IV), and we do so here as well for the same reasons (see ¶¶ 45, 48, supra). ¶56 Phelps also argues that the Gallagher case “was a partnership opportunity” and that the Gallagher fee “was not to be appropriated ‘without the consent of the other partners’ ” (quoting § 35-10-405(2)(a)(iii), MCA). However, the record reflects that the partners in fact did provide “consent” in the form of the Partnership Draws and the Shared Work provisions of the Agreement, which together authorized the Gallagher fee to be allocated as it was-55% to Frampton and 45% to Hileman. The record also reflects that Frampton contributed to the partnership pool up to the required $100,000 annual cap and, thus, did not retain funds to which the Firm was entitled. ¶57 Finally, Phelps again makes references to “secret meetings” supposedly had by Frampton and Hileman regarding the allocation of the Gallagher fee. In his deposition, Phelps explained that in his view, this case should have been discussed at the outset by the firm as-as to a division of fees, as to determining who brought it in, who didn’t bring it in, what’s appropriate, what’s fair, and that didn’t happen. And I think that should have happened. I think that’s a breach of fiduciary duty .... Yet, Phelps has cited no provision of the Agreement requiring the Firm to determine or approve the percentage splits for partners who work together on contingent-fee cases. Moreover, Phelps admitted in his deposition that Frampton “[flairly contemporaneously’ provided Phelps with information about Frampton and Hileman’s fee agreement. Phelps’s conclusory allegations concerning “secret meetings” are insufficient to establish a. genuine issue of material fact. See Klock v. Town of Cascade, 284 Mont. 167, 174, 943 P.2d 1262, 1266 (1997) (“In order to meet its burden, the party opposing the [summary judgment] motion must present substantial evidence, not mere denial, speculation, or conclusory statements.”). ¶58 Accordingly, we affirm the District Court’s grant of summary judgment in favor of Frampton on Phelps’s Breach of Fiduciary Duty claim. VI. The Constructive Trust Claim ¶59 Lastly, Phelps alleged -under Count VI that “Frampton derived property or benefit by appropriation of partnership property or opportunity” and that “Frampton would ... be unjustly enriched if he were permitted to retain the extraordinarily large sum that he took as his sole property.” Thus, “[a] constructive trust should be imposed on the fee to insure that Phelps receive [sic] a 20% share of it.” The District Court ruled against Phelps on this claim, reasoning that “it is inappropriate to impose a constructive trust” since “the Partnership Agreement dictates the nature of the fee distribution,” “Frampton correctly retained his percentage of the fee,” and, thus, “there can be no question that any part of the fee belonged to Phelps.” ¶60 On appeal, the crux of Phelps’s challenge to the District Court’s ruling is that “[the Gallagher fee] was not properly the sole property of Frampton and/or Hileman.” Phelps requests that we impose “a constructive trust on an equitable portion of the fees improperly taken by Frampton as his own in [the Gallagher case].” Yet, we concluded above that Frampton was entitled to 55% of the Gallagher fee, and the record reflects that he contributed to the partnership pool as required by the Agreement. Phelps has failed to demonstrate that Frampton would be unjustly enriched if he were permitted to retain the remaining portion of his 55% share of the Gallagher fee. See In re Marriage of Moss, 1999 MT 62, ¶ 29, 293 Mont. 500, ¶ 29, 977 P.2d 322, ¶ 29 (“[A] person seeking to impose a constructive trust on property must... prove that the title holder would be unjustly enriched if they were permitted to retain title.”); see also § 72-33-219, MCA (“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.”). We conclude, therefore, that there is no basis here for imposing a constructive trust, and we affirm the District Court’s grant of summary judgment in favor of Frampton on Phelps’s Constructive Trust claim. CONCLUSION ¶61 The District Court did not err in granting summary judgment in favor of Frampton on each of the claims set forth in Phelps’s complaint. ¶62 Affirmed. CHIEF JUSTICE GRAY, JUSTICES WARNER, COTTER and RICE concur. Section 35-10-405(5), MCA, derives from, and is identical in all material respects to § 404(e) of the Uniform Partnership Act (1992). We note here that Frampton does not provide a separate analysis of the statutory obligation of good faith and fair dealing. Rather, he appears to be of the view that the implied covenant of good faith and fair dealing and § 35-10-405(5)’s obligation of good faith and fair dealing are coextensive. (Phelps, at times, also lumps the two together.) As will become clear below, Frampton’s liability under both the implied covenant and the statutory obligation may be resolved on identical grounds; nevertheless, it is important to recognize that they are independent of each other. As explained above, the implied covenant is contract-based and, therefore, applies to the performance and enforcement of an agreement or contract. By contrast, § 35-10-405(5)’s obligation is defined by statute and, pursuant to the language of § 35-10-405(5), MCA, applies to the discharge of duties and the exercise of rights under the partnership agreement and under Title 35, Chapter 10, MCA.
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 In January 2003, one-year old Dane Heggem (Dane) died while in the care of the Tiny Tots Daycare located in Laurel, Montana (Tiny Tots), and co-owned by Sabine Bieber (Bieber) and Denise Smith (Smith). Postmortem testing revealed that Dane had an elevated level of diphenhydramine (DPH) in his system. DPH is an active ingredient in cold and allergy medications such as Benadryl® and has strong sedative properties. Further investigation indicated that the DPH had been administered to Dane at Tiny Tots. Bieber was subsequently charged with one count of negligent homicide, three counts of criminal endangerment, and one count of tampering with physical evidence, all felony charges. A jury found her guilty of negligent homicide and two counts of criminal endangerment. Bieber appeals. We affirm. ISSUES ¶2 A restatement of Bieber’s issues on appeal is: ¶3 Did the District Court err when it denied her Motion to Suppress? ¶4 Did the District Court abuse its discretion in admitting the opinion testimony of the State’s expert and in refusing to conduct a Daubert hearing? ¶5 Did the District Court abuse its discretion in admitting M. R. Evid. 404(b) (Rule 404(b)) evidence of “other acts” and refusing offered cautionary instructions? ¶6 Did the District Court abuse its discretion in refusing offered defense jury instructions? ¶7 Did the District Court abuse its discretion in failing to instruct the jury in response to jury questions and in subsequently providing an Allen-type instruction after the jury was deadlocked? ¶8 Is reversal for cumulative error required? FACTUAL AND PROCEDURAL BACKGROUND ¶9 On January 31, 2003, at approximately 2:45 p.m., the Laurel Police Department (LPD) dispatcher received an emergency call from Tiny Tots reporting that a one-year old child at the facility was not breathing. When ambulance staff arrived, they learned that Dane had not responded to cardiopulmonary resuscitation (CPR) being performed by Bieber. He was not breathing, was slightly blue in color and unresponsive. He was transported by helicopter to St. Vincent’s Hospital in Billings where he was pronounced dead at 3:49 p.m. ¶10 While Dane was being transported to Billings, officers from the LPD arrived at the day-care. Bieber and Smith consented to a police search of the facility at that time and both Bieber and Smith described the day’s events leading up to the emergency call to 9-1-1. Neither woman mentioned administering any medication to Dane. ¶11 An autopsy was performed on February 2, 2003, resulting in a preliminary conclusion of a natural death. A subsequent toxicology report issued around February 11, 2003, however, revealed “quite elevated” DPH levels in Dane’s blood and urine. According to the police investigation to that date, Dane was not ill on January 31 nor had his parents given him any prescription or over-the-counter (OTC) medication on January 31. His parents also reported that Dane had not received nor needed any medication during the several weeks leading up to the day of his death. Upon notification of the toxicology results, the LPD contacted the Montana Department of Justice (DOJ) and Agent Gary Hatfield (Hatfield) was assigned to assist the LPD with its investigation. ¶12 Subsequent interviews with Dane’s parents revealed that his mother had given Dane a pediatrician-recommended dosage of DPH on two occasions only since his birth-once when Dane was around six months and the other time in mid-December 2002. Both times were to counteract allergic reactions. She said that, to her knowledge, Dane had not had any medication containing DPH since mid-December 2002. Dane’s mother also told investigators that the only medication she authorized Tiny Tots to administer to Dane was gas relief drops developed for infants and children. ¶13 On February 14,2003, a Department of Public Health and Human Services (DPHHS or the Department ) day-care inspector, Tana Johnson, arrived at Tiny Tots to conduct an unannounced inspection and investigation. Hatfield had arranged with Johnson’s DPHHS supervisor to attend the inspection as well. Johnson and Hatfield arrived at approximately 10:30 a.m. Johnson explained that she was there to conduct a regulatory inspection and Hatfield introduced himself. Hatfield claims to have told Bieber at or near the front door that he was conducting a criminal investigation in conjunction with the LPD, and indicated he asked Bieber to sign a consent form, which she did. Bieber claims that Hatfield did not identify himself as a criminal investigator until the facility inspection was concluded and it was then that he requested that she sign a consent form. ¶14 Near the end of a room-by-room facility tour, Johnson noticed a clear plastic dose cup generally packaged with OTC liquid medicines. The dose cup which was filled with a red liquid to a line indicating “adult dosage” was on an open kitchen shelf next to a full baby bottle that appeared to contain baby formula. When questioned by Johnson, Bieber indicated it was DPH and showed Johnson the 12-ounce bottle of Diphedryl from which it had been poured. Johnson asked the age of the child to receive the medication and Bieber told her it was for a six-year old and that the child’s mother had poured out the dose when she dropped her child off that morning. However, according to the forms signed by parents authorizing day-care staff to administer medication, there was no authorization by the six-year old child’s parents to administer DPH. When Johnson advised Bieber that she would receive a written deficiency for failing to obtain permission in writing from the parents for this particular medication, Bieber took the full dose cup and dropped it into a sink of soapy dishwater. Hatfield retrieved the cup from the sink, photographed it, the bottle of Diphedryl and the general area, and put both the dose cup and the Diphedryl bottle into evidence containers and later transferred them to LPD for submission for analysis. Subsequent analysis revealed the presence ofDPHinboth items. ¶15 After leaving Tiny Tots, Johnson and Hatfield contacted the six-year old child’s mother who had purportedly poured the dose cup. She denied having done so; therefore, Johnson and Hatfield decided to interview other parents of children attending Tiny Tots Daycare. The parents of an eight-month old child authorized Hatfield to submit recently-disposed of diapers for testing for foreign substances in their child’s urine. Analysis indicated that two of three diapers revealed the presence of doxylamine, an antihistamine with sedative properties that should not be administered to children less than twelve years of age without doctor’s orders. Upon notification that the child’s diapers contained doxylamine, the child’s mother reported that she had not given the child any medication for several days leading up to the day the diapers were disposed of nor had Bieber or Smith told her that either of them had administered medication to her child. ¶16 With parental permission, other children’s diapers were collected and analyzed and the presence of DPH was detected. After being told by one of the older children attending the day-care that all the children got dark-colored liquid medicine at lunch time, this child provided a urine sample which likewise tested positive for DPH. ¶17 On February 21, 2003, the doctor who performed the autopsy amended his report to conclude that Dane’s cause of death was “undetermined” rather than “natural.” On February 26,2003, DPHHS suspended the registration of Tiny Tots as a group day-care facility. On March 12,2003, Dane’s death certificate was issued with a finding that the cause of death was DPH toxicity and the manner of death was homicide. ¶18 On July 14, 2003, the State’s motion for leave to file an Information against Bieber and Smith was granted. Both women were charged with one count of felony negligent homicide, three counts of felony criminal endangerment, and one count of felony tampering with physical evidence. Arrest warrants were issued. On March 25, 2004, the State’s motion to dismiss charges against Smith without prejudice was granted. The case then proceeded exclusively against Bieber. A jury trial was held from August 16-30,2005, at the conclusion of which the jury found Bieber guilty of negligent homicide relative to Dane, and two counts of criminal endangerment for knowingly engaging in conduct that created a substantial risk of death or serious bodily injury to two other young children who attended the day-care. In October 2005 Bieber was sentenced to a term of twenty years in the Montana Women’s Prison with fifteen suspended for the negligent homicide charge. She was sentenced to a term of ten years, all suspended, for each criminal endangerment count to run consecutively to the homicide count. She filed a timely appeal. ¶19 Additional facts will be addressed below as needed for our analyses. STANDARDS OF REVIEW ¶20 Motion to Suppress'. The standard of review of a district court’s denial of a motion to suppress evidence is whether the court’s findings are clearly erroneous. To determine whether a finding of fact is clearly erroneous, this Court ascertains whether the finding is supported by substantial evidence, whether the district court misapprehended the effect of the evidence, and whether the Court is nevertheless left with a definite and firm conviction that the district court made a mistake. We further review a district court’s denial of a motion to suppress to determine whether the court’s interpretation and application of the law are correct. This Court’s review is plenary as to whether the district court correctly interpreted and applied the law. State v. Wetzel, 2005 MT 154, ¶ 10, 327 Mont. 413, ¶ 10, 114 P.3d 269, ¶ 10 (citing State v. Martinez, 2003 MT 65, ¶ 19, 314 Mont. 434, ¶ 19, 67 P.3d 207, ¶ 19). ¶21 Expert witness testimony and admissibility of evidence: We have repeatedly held that questions concerning the admissibility of evidence are within the discretion of the district court. Cottrell v. Burlington Northern R. Co., 261 Mont. 296, 301, 863 P.2d 381, 384 (1993); M. R. Evid. 104 (Rule 104). We review an evidentiary ruling regarding the admission of evidence of other crimes, wrongs, or acts for abuse of discretion. State v. Marshall, 2007 MT 198, ¶ 11, 338 Mont. 395, ¶ 11, 165 P.3d 1129, ¶ 11. We have also held that a district court is “vested with great latitude in ruling on the admissibility of expert testimony’ and that “without a showing of an abuse of discretion, such [a] determination will not be disturbed.” Cottrell, 261 Mont. at 301, 863 P.2d at 384; State v. Crawford, 2003 MT 118, ¶ 30, 315 Mont. 480, ¶ 30, 68 P.3d 848, ¶ 30; State v. DuBray, 2003 MT 255, ¶ 38, 317 Mont. 377, ¶ 38, 77 P.3d 247, ¶ 38; State v. Larson, 2004 MT 345, ¶ 29, 324 Mont. 310, ¶ 29, 103 P.3d 524, ¶ 29. ¶22 Jury instructions: We review jury instructions in a criminal case to determine whether the instructions, as a whole, fully and fairly instruct the jury on the law applicable to the case. Further, we recognize that a district court has broad discretion when it instructs a jury, and we therefore review a district court’s decision regarding jury instructions to determine whether the court abused that discretion. State v. Swann, 2007 MT 126, ¶ 32, 337 Mont. 326, ¶ 32, 160 P.3d 511, ¶ 32 (citations omitted). To determine whether a district court has abused its broad discretion, we determine “whether the trial court acted arbitrarily or exceeded the bounds of reason resulting in substantial injustice.” State v. English, 2006 MT 177, ¶ 50, 333 Mont. 23, ¶ 50, 140 P.3d 454, ¶ 50. If the district court has rendered instructions that are erroneous in some aspect, the mistake must prejudicially affect the defendant’s substantial rights in order to constitute a reversible error. State v. Archambault, 2007 MT 26, ¶ 14, 336 Mont. 6, ¶ 14, 152 P.3d 698, ¶ 14. ¶23 Conflicting evidence: It is not this Court’s function, on appeal, to reweigh conflicting evidence or substitute our evaluation of the evidence for that of the district court. We defer to the district court in cases involving conflicting testimony because we recognize that the court had the benefit of observing the demeanor of witnesses and rendering a determination of the credibility of those witnesses. Wetzel, ¶ 11 (citations omitted). DISCUSSION ¶24 Issue One: Did the District Court err when it denied Bieber’s Motion to Suppress? ¶25 Prior to trial, Bieber moved to suppress all evidence seized or acquired derivatively during the unannounced regulatory inspection conducted by DPHHS on February 14,2003. She alleged that Hatfield intentionally misrepresented the purpose of his presence during the inspection. While acknowledging that she signed a consent form, she asserted that she believed she was required, as a condition of her daycare licensure, to submit to periodic unannounced inspections. She also claimed that Hatfield did not seek nor obtain her consent until after she, Johnson and Hatfield had walked through the entire day-care facility. She further argued that this was not a regulatory inspection but rather a warrantless criminal investigatory search. Bieber maintained that this pretextual search violated her due process rights and constituted an unreasonable search and seizure. ¶26 On April 12, 2005, the District Court held a hearing on Bieber’s Motion to Suppress. In its detailed sixteen-page Findings of Fact, Conclusions of Law and Order, the court employed the “totality of the circumstances” test to determine whether Bieber’s consent had been voluntary. It concluded that Bieber’s consent had been voluntary and uncoerced. As a result, the District Court denied Bieber’s motion to suppress the evidence obtained by Hatfield. ¶27 On appeal Bieber proffers numerous grounds upon which the District Court erred in refusing to suppress the evidence Hatfield collected including coerced consent, unjustified “plain view” seizure, and unreasonable warrantless administrative search of her business. Resolution of the suppression issue, however, is achieved through analysis of Bieber’s consent; therefore, we need not address Bieber’s other claims of error. ¶28 Bieber’s substantive argument in her appellant’s brief that her consent was involuntary consists of a single sentence: “While [Bieber] did sign a consent to search, it was based upon an intentional misrepresentation by law enforcement that it was for the purpose of allowing Agent Hatfield inspect [sic] and take photographs of the premises as part of a mandatory administrative inspection by DPHHS.” Bieber’s associated legal analysis is composed of a single citation to State v. Carlson, 198 Mont. 113, 644 P.2d 498 (1982), presented for the proposition that if an officer’s statement constitutes subtle coercion, consent is invalid. ¶29 Under the Fourth and Fourteenth Amendments to the United States Constitution, and Article II, Section 11, of the Montana Constitution, warrantless searches and seizures are per se unreasonable subject only to a few carefully drawn exceptions. State v. Rushton, 264 Mont. 248, 257, 870 P.2d 1355, 1361 (1994) (citing Schneckloth v. Bustamonte, 412 U.S. 218, 93 S. Ct. 2041 (1973)). One of the recognized exceptions to the warrant requirement arises when a citizen has knowledgeably and voluntarily consented to a search. Rushton, 264 Mont. at 257, 870 P.2d at 1361; § 46-5-101, MCA. The prosecution carries the burden of establishing that consent to a warrantless search was freely and voluntarily given and uncontaminated by any express or implied duress or coercion. State v. Olson, 2002 MT 211, ¶ 20, 311 Mont. 270, ¶ 20, 55 P.3d 935, ¶ 20. ¶30 Courts apply the “totality of the circumstances” test in determining whether consent has been voluntarily given and is uncontaminated by coercion or duress. Wetzel, ¶ 16. Thus, the determination of voluntariness of consent is dependent on the facts of each case, with no single fact being dispositive. State v. Copelton, 2006 MT 182, ¶ 19, 333 Mont. 91, ¶ 19, 140 P.3d 1074, ¶ 19 (citing State v. Dawson, 233 Mont. 345, 352, 761 P.2d 352, 356 (1988)). ¶31 The totality of the circumstances includes the defendant’s age, experience, education level, the defendant’s prior experience with the criminal justice system and police interrogation, whether the accused was advised of her Miranda rights, and whether the police used impermissible practices to extract incriminating statements from the defendant. State v. Jones, 2006 MT 209, ¶ 21, 333 Mont. 294, ¶ 21, 142 P.3d 851, ¶ 21. The court should consider any physical coercion, psychological coercion, deception, use of threats, and direct or implied promises when determining whether police employed impermissible practices to extract incriminating statements from the defendant. Jones, ¶ 21 (citation omitted). ¶32 The record indicates that Bieber was thirty-four years old at the time Johnson and Hatfield inspected Tiny Tots in February 2003. It also reveals that she graduated from high school in 1987 and immediately joined the Army where she undertook medical training after which she was assigned to an Army medical hospital. After leaving the Army, she underwent certified nursing assistant (CNA) training and worked as a CNA in Billings for five years. In 1998, she started Tiny Tots with a former partner who was subsequently replaced by Denise Smith. ¶33 Other relevant circumstances in this case included the DOJ consent form and the DOJ Miranda warning both signed by Bieber during Hatfield’s inspection of the facility on February 14, 2003. The consent form stated in relevant part that she authorized Hatfield to conduct a complete search of her day-care center and authorized: [S]aid Agent to remove and search any letters, documents, papers, materials, containers, clothing, property or things which are considered pertinent to the investigation with the understanding that said Agent may seize and hold any and all items of evidence found provided said agent will provide me a receipt for whatever is removed. I have been advised of my constitutional right not to have a search made without a search warrant and of my right to refuse to consent to such a search. This consent is given freely and voluntarily without coercion or promises having been made or implied, is knowingly and intelligently given, and this consent is not obtained through deception or misrepresentation regarding the officer’s authority or intention to secure a formal warrant. ¶34 Additionally, the record reveals that it was Hatfield’s long-established custom to fully introduce himself when seeking consent to conduct an investigation. He testified that at or near the front door of Tiny Tots he identified himself, showed Bieber his badge and photograph identification and provided her with his business card. He explained that he was conducting an investigation at the request of the Laurel Police Department into Dane’s death and that he wanted to accompany Johnson in the day-care inspection. He instructed that he could not do so, however, without her consent. She agreed to sign the consent form. Johnson’s testimony at the suppression hearing corroborated Hatfield’s testimony. ¶35 Other circumstances pertinent to the voluntariness of Bieber’s consent identified by the District Court and supported by the record include: Johnson and Hatfield arrived at Tiny Tots at approximately 10:30 a.m. on a weekday-a reasonable time to arrive at a place of business; they did not awaken Bieber who was calm, composed and appropriately dressed for her work day; she communicated appropriately and indicated that she fully understood the information Johnson and Hatfield were conveying and requesting; the children in her care during the inspection were not particularly demanding of her attention and during the inspection, Bieber’s partner, Smith, arrived and took over supervision of the children for a short period of time; for several weeks prior to Hatfield’s presence at Tiny Tots, Bieber had regular contact and cooperated with other law enforcement officers concerning Dane’s death and had signed a prior consent form that was identical to the form she signed at Hatfield’s request. ¶36 While Bieber disputes Hatfield’s and Johnson’s version of events, the District Court concluded that there was no credible evidence to support Bieber’s contention that her consent was secured by subterfuge or express or implied misrepresentation. The court further concluded that Hatfield did not misrepresent his identity or purpose, nor did he engage in acts or communication tantamount to guise or pretext. ¶37 Bieber does not identify any specific District Court findings that she considers erroneous and our review of the record supports the court’s findings and conclusions. As indicated above, it is not our function, on appeal, to reweigh conflicting evidence. We defer to the district court in cases in which conflicting testimony is presented because we recognize that the court had the benefit of observing the demeanor of witnesses and rendering a determination of the credibility of those witnesses. Wetzel, ¶ 11. We conclude that the District Court did not err in denying Bieber’s motion to suppress. ¶38 Issue Two: Did the District Court abuse its discretion in admitting the opinion testimony of the State’s expert and in refusing to conduct a Daubert hearing? ¶39 Bieber moved the District Court to preclude the State from presenting testimony by Dr. Philip Walson, the State’s expert witness, that Dane died from DPH toxicity. Bieber criticized Walson’s conclusions that Dane received a toxic and lethal overdose of DPH and that the unwarranted and unauthorized administration of the medicine exposed Dane to the risk of a serious or fatal outcome and constituted “endangerment.” She argued that Walson’s reliance on postmortem DPH blood levels to support his claim that Dane died from DPH toxicity was flawed because use of postmortem DPH blood levels to determine pre-mortem blood levels and declare cause of death constitutes a “novel application of pseudo-scientific speculations and conjecture.” She requested that Walson’s testimony be excluded or that a Daubert hearing be held to determine admissibility under M. R. Evid. 702 (Rule 702). The District Court denied Bieber’s motion. ¶40 On appeal, Bieber claims that the District Court committed reversible error when it refused to conduct a Daubert hearing. She asserts that Walson’s letters explaining his conclusions dealt “only with [Walson’s] opinions and beliefs about what he thinks the facts and circumstances of the alleged offense may be, and it does not deal with the appropriate subject matter for an expert opinion. In addition, the underlying methodology is not scientifically accepted and the toxicology test results were inherently unreliable.” She continues that Walson’s “opinion is based upon the perceptions of the State’s investigators and reflective of the State’s factual theory of the case.” Lastly, she maintains that Walson’s opinion does not meet any of the four standards for admission of expert scientific testimony set forth in State v. Moore, 268 Mont. 20, 885 P.2d 457 (1994) (overruled on other grounds by State v. Gollehon, 274 Mont. 116, 906 P.2d 697 (1995)). ¶41 The State responds that the District Court correctly determined that the subject matter required expert testimony which Walson was qualified to provide. It notes that district courts have “great” latitude in ruling on the admissibility of expert testimony and that without a showing of an abuse of discretion, such a determination should not be disturbed. In addition, it argues that Daubert does not apply because the testimony does not involve novel scientific evidence. The State posits that experts routinely offer testimony in the courts on the presence of drugs and their effects and that any questions regarding Walson’s analysis go to the weight of the evidence, and not to its admissibility. ¶42 Bieber requested two Daubert hearings-one to address the coroner’s report and a later one to address Walson’s letters. On February 6, 2004, the District Court held a motions’ hearing in which it allowed Bieber’s expert to challenge the findings of the coroner-i.e., that Dane’s death was a homicide caused by a DPH overdose. On February 20, 2004, the District Court issued an order holding that Bieber’s expert’s testimony did not trigger a Daubert inquiry in that the “field of pathology [was] centuries old and is not a novel or speculative field ....” The court also determined that Bieber’s expert was challenging the coroner’s conclusion, and not the “principles or methodology or theory or technique of the science of pathology”; therefore, a Daubert hearing was unnecessary. Subsequently, after Walson submitted his opinion letters and Bieber changed attorneys, her new attorneys filed a second motion for a Daubert hearing to address Walson’s testimony. The District Court scheduled the hearing but later vacated it concluding once again that Bieber was challenging Walson’s conclusions and not his methodology and that vigorous cross-examination at trial would allow the jury to determine the sufficiency of the State’s case. ¶43 Rule 702 governs the admissibility of expert testimony and provides: If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education may testify thereto in the form of an opinion or otherwise. ¶44 Bieber does not argue that Rule 702 expert testimony was unnecessary in this case; in fact, she asserts that such testimony was mandatory as a “lay jury is not able to determine whether or not a trace amount of an OTC drug constitutes a substantial risk of serious bodily injury or death,” and presented three expert witnesses to the District Court to proffer support for her case. We agree that this is an appropriate case for expert testimony. See State v. Nobach, 2002 MT 91, ¶ 17, 309 Mont. 342, ¶ 17, 46 P.3d 618, ¶ 17, in which we held that the symptoms of drug consumption or the effect of drug consumption requires expert testimony. (Lay persons were not allowed to testify about common symptoms of drug consumption or the effects of drug consumption on a person’s ability to drive.) ¶45 Nor does Bieber argue that Walson was unqualified to offer expert testimony or that the State failed to establish through foundation that Walson has the requisite training, education, knowledge or experience to testify as an expert. Rather, Bieber argues that Walson’s opinion does not meet any of the four standards for admission of expert scientific testimony set forth in Daubert and Moore and that his opinion was based upon the perceptions of the State’s investigators which is impermissible under State v. Clark, 209 Mont. 473, 682 P.2d 1339 (1984). ¶46 In Daubert, the U.S. Supreme Court established the following non-exclusive factors to be considered when assessing the reliability of proffered scientific expert testimony: (1) whether the theory or technique can be and has been tested; (2) whether the theory or technique has been subjected to peer review and publication; (3) the known or potential rate of error in using a particular scientific technique and the existence and maintenance of standards controlling the technique’s operation; and (4) whether the theory or technique has been generally accepted or rejected in the particular scientific field. Daubert, 509 U.S. at 583, 113 S. Ct. at 2796-97. ¶47 In 1994, this Court adopted the Daubert factors, concluding they were consistent with our holding in Barmeyer v. Montana Power Co., 202 Mont. 185, 657 P.2d 594 (1983), overruled on other grounds by Martel v. Montana Power Co., 231 Mont. 96, 752 P.2d 140 (1988), concerning the admission of novel scientific evidence. Moore, 268 Mont. at 42, 885 P.2d at 470-71. While Bieber argues otherwise, this Court has consistently held since Moore that the Daubert factors apply exclusively to novel scientific evidence. State v. Cline, 275 Mont. 46, 55, 909 P.2d 1171, 1177 (1996); Hulse v. State, Dept. of Justice, 1998 MT 108, ¶¶ 55-69, 289 Mont. 1, ¶¶ 55-69, 961 P.2d 75, ¶¶ 55-69; State v. Southern, 1999 MT 94, ¶ 59, 294 Mont. 225, ¶ 59, 980 P.2d 3, ¶ 59; Gilkey v. Schweitzer, 1999 MT 188, ¶¶ 18-20, 295 Mont. 345, ¶¶ 18-20, 983 P.2d 869, ¶¶ 18-20; State v. Hocevar, 2000 MT 157, ¶ 56, 300 Mont. 167, ¶ 56, 7 P.3d 329, ¶ 56; State v. Ayers, 2003 MT 114, ¶ 37, 315 Mont. 395, ¶ 37, 68 P.3d 768, ¶ 37. ¶48 In Moore, the defendant argued that the district court erred in admitting DNA evidence. Although the foundation of the testimony of the State’s expert witnesses was somewhat shaky, we concluded the district court did not err in ruling that the defendant’s objections to the DNA evidence went to the weight of the evidence and not to its admissibility. Moore, 268 Mont. at 42-43, 885 P.2d at 471. ¶49 In the case before us, Bieber argues that she is not challenging the area of forensic toxicology but rather “the novelty of the extension of accepted pathological and toxicological standards which render it ‘novel science’ as applied to this case.” As did the District Court, we conclude this is a challenge to the conclusions reached by the State’s expert witness, rather than a challenge to the methodology used to determine the level of DPH in Dane’s body or to the scientific research chronicling DPH-related deaths in small children. As Bieber was not challenging the methodology or technique of the science underlying the expert’s testimony, the District Court did not abuse its discretion by denying Bieber’s request for a Daubert hearing while encouraging vigorous cross-examination before the jury. ¶50 As for Bieber’s claim that Walson’s testimony was inadmissible under Clark, Clark is distinguishable. In Clark, we held that under Rule 702 a private investigator could not testify as an expert as to the results of his investigation as such testimony would not involve “scientific, technical or other specialized knowledge” but rather was a summary of alibi evidence gathered from interviewing people regarding the crimes for which Clark was charged. Clark, 209 Mont. at 485, 682 P.2d at 1345. In the case at bar, Walson’s expert testimony was premised upon his review of medical records, police reports, MEDLINE research on results for DPH and adverse effects, forensic and autopsy reports, and other articles identifying DPH toxicity concerns. Walson concluded based upon the medical history of the child, the postmortem DPH levels, the placement of the child on his stomach, and the absence of adequate observation, that Dane stopped breathing enough to keep his oxygen level up and because he was sedated, he did not respond appropriately. As a result, his oxygen continued to fall until he eventually stopped breathing completely and his heart stopped. This testimony, unlike that of the investigator in Clark, was not based exclusively upon a factual review of the statements of witnesses but rather was developed through review of scientific and medical records, articles and reports. As such, it was within the realm of admissible expert testimony. Therefore, we conclude that the District Court did not abuse its discretion in admitting Walson’s testimony. ¶51 Issue Three: Did the District Court abuse its discretion in admitting M. R. Evid. 404(b) (Rule 404(b)) evidence of “other acts” and refusing offered cautionary instructions? ¶52 Over Bieber’s objections, the District Court allowed the State to present evidence that Bieber had purchased sixty-three 12-ounce bottles of DPH from Costco during the two years before Dane’s death: forty-five bottles were purchased within a year of his death and six bottles were purchased within a month of his death. The evidence showed that Bieber made the majority of these purchases using daycare funds. Additionally, the State offered evidence that Bieber violated administrative rules pertaining to the use of drugs at the daycare. This evidence included testimony by parents testifying that they did not give Bieber or other day-care staff written permission to administer OTC drugs to their children. ¶53 Bieber claims that this evidence was inadmissible because it was irrelevant and highly prejudicial. She also claims that it was inadmissible under Rule 404(b) without a State-articulated permissible purpose for introducing the evidence and a Just notice as required by State v. Just, 184 Mont. 262, 602 P.2d 957 (1979), modified, State v. Matt, 249 Mont. 136, 814 P.2d 52 (1991). Moreover, Bieber asserts that the District Court abused its discretion by refusing to give a cautionary instruction offered by her. ¶54 The State counters that Rule 404(b) is inapplicable because it pertains to “character” evidence and evidence of Bieber’s DPH purchases was not introduced to inform the jury as to Bieber’s character. Furthermore, the State maintains, evidence of DPH purchases are not “wrongful acts” under Rule 404(b); rather, such evidence, together with testimony that the parents did not provide written permission to administer OTC medications to their children, was relevant and admissible evidence under the “transaction rule” in that it was inextricably linked to the crimes charged. Under the transaction rule, a declaration, act, or omission that forms a part of a transaction which is itself the fact in dispute or evidence of that fact, is admissible. Section 26-1-103, MCA. ¶55 Rule 404(b), provides: 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 of mistake or accident. ¶56 In Just, the Court noted that Montana protects a defendant in certain circumstances against “the admission of potentially prejudicial evidence of other crimes or wrongful acts. It is the rule that both trial courts and this Court are obligated to balance carefully the relative probative value of the evidence of other offenses against the prejudice inherent in this type of evidence in light of the actual need to introduce such evidence.” As a safeguard we require that evidence of other crimes may not be received unless proper notice has been provided to the defendant of the State’s intent to use such evidence and the State has indicated the purpose for which the evidence will be introduced. Just, 184 Mont. at 268, 602 P.2d at 960-61. ¶57 It is undisputed that the State did not provide notice under the Modified Just Rule, nor did it articulate the purpose for which it intended to introduce the evidence. However, under the transaction rule and Marshall, neither was necessary. In Marshall, Marshall was convicted of attempted sexual abuse of children and indecent exposure. The State introduced evidence of sexual comments and sexually provocative acts Marshall made toward the children in the months prior to his arrest. Marshall challenged the introduction of the prior acts on the grounds that the State did not provide the required notice or a permissible purpose for its introduction. We held the District Court did not abuse its discretion in admitting this evidence. We explained that under § 26-1-103, MCA, the comments and acts were part of a continuous course of conduct in which Marshall was “grooming” the girls for future unlawful sexual activity. We determined that under the transaction rule, these acts were inextricably linked to the offense charged and therefore were admissible and not subject to the four-prong test or the notice requirements under Just or Matt criteria. The same analysis applies in the case before us. Bieber’s purchases of DPH during the months before Dane’s death, while not illegal acts, are nonetheless “inextricably linked to, and explanatory of, the charged offense” and are admissible notwithstanding the rules relating to “other acts” evidence. Marshall, ¶ 16; State v. Gillham, 206 Mont. 169, 178-79, 670 P.2d 544, 549-50 (1983) (evidence that Gillham possessed the weapon and material used in the attempted deliberate homicide constituted evidence that was closely related to the offense and explanatory of it). ¶58 Having determined that the evidence of DPH purchases was not subject to the Modified Just Rule or Just notice, it must be analyzed, not in terms of Rule 404(b), M. R. Evid., but in terms of relevancy. In general, under Rule 402, M. R. Evid., relevant evidence is admissible. Rule 401, M. R. Evid., defines relevant evidence as “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.” Accord State v. Rendon, 273 Mont. 303, 307, 903 P.2d 183, 185-86 (1995). Evidence of numerous and long-term purchases of DPH with day-care funds was relevant to the questions of whether Bieber caused Dane’s death or endangered other children by administering DPH to them. ¶59 Bieber also argues that the evidence was highly prejudicial and therefore should have been excluded. Relevant evidence is excluded only if its probative value is substantially outweighed by the danger of “unfair prejudice.” Rule 402, M. R. Evid.; State v. Cesnik, 2005 MT 257, ¶ 16, 329 Mont. 63, ¶ 16, 122 P.3d 456, ¶ 16. It is within the district court’s discretion to balance the probative value of the evidence against its unfair prejudice. State v. Devlin, 251 Mont. 278, 283, 825 P.2d 185, 188 (1991). Unfair prejudice can arise from evidence that arouses the jury’s hostility or sympathy for one side without regard to its probative value, evidence that confuses or misleads the trier of fact, or evidence that might unduly distract the jury from the main issues. State v. Huether, 284 Mont. 259, 265, 943 P.2d 1291, 1295 (1997). In criminal proceedings, probative evidence is often, if not always, prejudicial to the defendant. State v. Pittman, 2005 MT 70, ¶ 27, 326 Mont. 324, ¶ 27, 109 P.3d 237, ¶ 27. We conclude that the frequent purchases of the medication found in Dane’s body and the bodily fluids of two other children attending the day-care was probative evidence, and conclude the District Court did not err in admitting it. ¶60 Finally, Bieber complains that evidence of DPHHS violations was inadmissible. We disagree and hold that this evidence too was admissible under the transaction rule. Therefore, the District Court did not abuse its discretion in admitting the evidence. We further conclude that no cautionary jury instruction to cure prejudice was required. ¶61 Issue Four: Did the District Court abuse its discretion in refusing offered defense jury instructions ? ¶62 Bieber claims that the District Court abused its discretion in refusing to instruct the jury on defense theories she believed applicable to her case and supported by the evidence. The theories on which she offered instructions included: (1) mental state and definition of criminal negligence; (2) accident, misfortune and foreseeability; (3) good faith belief defense; and (4) prejudicial joinder of offensive [sic] and cumulative consideration of evidence. The State counters that Bieber’s proposed instructions were cumulative, confusing, or inappropriate based on Bieber’s defense position. The State also argues that some of Bieber’s proposed instructions relied on inapposite law or were inaccurate summaries of the statutes offered as authority. ¶63 As noted above, and recently addressed in Archambault, district courts are accorded broad discretion in formulating jury instructions. This broad discretion is reflected in various rules developed over the years, including the following: (1) while district courts must instruct the jury on each theory which is supported by the record, the defendant is not entitled to have the jury instructed on every nuance of his or her theory of the case; (2) the fact that one instruction, standing alone, was not as complete or accurate as it could have been is not reversible error; and (3) district courts may refuse to give a requested instruction if its contents are adequately covered by the given instructions-i.e., it is not necessary to give repetitive instructions. Yet, while the district courts’ discretion is broad, it is ultimately restricted by the overriding principle that jury instructions must fully and fairly instruct the jury regarding the applicable law. Archambault, ¶ 25 (internal citations omitted). ¶64 Based on our review of the instructions given to the jury, and applying this deferential standard of review, we conclude that as a whole, the instructions given to the jury by the District Court fully and fairly instructed the jury on the law that was applicable to the case; therefore, the District Court did not abuse its discretion in refusing to give Bieber’s proposed instructions. ¶65 Issue Five: Did the District Court abuse its discretion in failing to instruct the jury in response to jury questions and in subsequently providing an Allen-type instruction after the jury was deadlocked? ¶66 On the second day of jury deliberations, the jury informed the District Court, in writing, that it had reached verdicts on counts two, three and four but that it “appeared” to be deadlocked on counts one and five. The foreperson requested assistance on the definition of “reasonable doubt” as it related to cause of death and indicated that “it [was his] opinion alone that we do not have adequate information to arrive at an agreement.” Bieber moved for a mistrial which the court denied. Bieber subsequently proposed a supplemental instruction which was refused by the corut. Instead, the District Court judge responded in writing: “I cannot give you more assistance. The law has been given to you in the 32 instructions.” After further deliberations, the jury notified the court that it could not reach verdicts on counts one and five. Bieber again moved for a mistrial which was again denied. The District Court then brought the jury back into the courtroom and without inquiry or discussion read a cautionary instruction for a potentially hung jury the source of which is Montana Criminal Jury Instruction (MCJI) 1-022. The jury returned to deliberations and ultimately convicted Bieber on counts one, three and four and acquitted her on counts two and five. ¶67 Bieber claims the court’s refusal to offer her proposed supplemental jury instruction on “reasonable doubt” constitutes error. As noted above, we review a court’s jury instructions in a criminal case to determine whether, as a whole, they fully and fairly instruct the jury on the law applicable to the case. Moreover, we apply the same standard of review to a court’s decision to provide or deny the jury’s request for additional information pursuant to § 46-16-503, MCA. When a court fully and correctly instructs the jury as to a defendant’s legal duties at issue, it is not an abuse of discretion to refuse to farther instruct the jury. State v. Crawford, 2002 MT 117, ¶ 15, 310 Mont. 19, ¶ 15, 48 P.3d 706, ¶ 15. As previously indicated, we conclude that as a whole, the instructions given to the jury by the District Court fully and fairly instructed the jury on the law applicable to the case. Therefore, the court did not abuse its discretion by refusing to provide further instruction. ¶68 Bieber also maintains that the District Court erred in giving an “Allen-type” instruction after learning that the jury was deadlocked with a single holdout juror. The term “Allen charge” is the generic name for a class of supplemental jury instructions given when jurors are apparently deadlocked; the name derives from the first Supreme Court approval of such an instruction in Allen v. United States, 164 U.S. 492, 501-02, 17 S. Ct. 154 (1896). In its mildest form, such an instruction reminds jurors of the importance of securing a verdict and asks jurors to reconsider potentially unreasonable positions. In its stronger form, an Allen charge has been referred to as a “dynamite charge” because of its ability to “blast” a verdict out of a deadlocked jury. “In the archetypal Allen charge context, the judge instincts a deadlocked jury to strive for a unanimous verdict.” U.S. v. Berger, 473 F.3d 1080 (9th Cir. 2007) (internal citations omitted). ¶69 This Court addressed an Allen instruction for the first time in State v. Randall, 137 Mont. 534, 540-42, 353 P.2d 1054, 1057-58 (1960). In Randall, the jury informed the district court that it was unable to reach a verdict. The court therefore read a lengthy instruction to the jury, most of which was unobjectionable. However, part of the instruction contained language that this Court determined was coercive in that it singled out dissenting jurors who disagreed with the majority and asked them to reconsider their views for the purpose of reaching a unanimous verdict. We held in Randall: The inevitable effect of the instruction would be to suggest to the minority members of the jury that they ought to surrender their own convictions and follow the majority. A vibrant, pulsating, intelligent minority is a part of our American way of life. The views of the minority often, with the passage of time, become the majority view .... The majority view on any given subject is not always the correct view. Randall, 137 Mont. at 542, 353 P.2d at 1058. ¶70 We revisited this issue in State v. Cline, 170 Mont. 520, 555 P.2d 724 (1976). In Cline, we concluded that the instruction given by the district court to a potentially deadlocked jury was not of the coercive character of that given in Randall. Rather, we found the instruction at issue innocuous, and concluded it did not unduly single out or pressure a dissenting juror. Cline, 170 Mont. at 540, 555 P.2d at 736. With very minor changes, the instruction given in this case was identical to the instruction we approved in Cline. For the same reasons we concluded that the instruction in Cline was acceptable, we conclude that the instruction given here was not objectionably coercive. This being so, we reject Bieber’s contention that the District Court was attempting by way of its instruction to coerce and intimidate the lone juror ostensibly creating the deadlock. ¶71 Issue Six: Is reversal for cumulative error required? ¶72 Having determined that the District Court’s rulings were neither erroneous nor an abuse of discretion, no cumulative error warranting reversal occurred. CONCLUSION ¶73 For the foregoing reasons, we affirm the District Court. JUSTICES NELSON, LEAPHART, RICE and MORRIS concur. DPHHS licenses and regulates day-care facilities in Montana. Section 52-2-721, MCA. Daubert v. Merrell Dow Pharms., 509 U.S. 579, 583, 113 S.Ct. 2786, 2796-97 (1993).
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On June 15, 2006, the defendant was sentenced to three (3) years in the Montana State Prison for violation of the conditions of a suspended sentence for the offense of Criminal Endangerment, a felony. On November 2, 2006, 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 Benjamin Anciaux. 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 increase it. The defendant was farther 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. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive in that the original sentence was a Department of Corrections commitment. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be modified to a Department of Corrections commitment for a term of three (3) years. The terms and conditions shall remain as imposed in the June 15, 2006 Judgment. Done in open Court this 3rd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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JUSTICE RICE delivered the Opinion of the Court. ¶1 Mark Campanella (Campanella) appeals from the order entered by the Twelfth Judicial District Court, Hill County, dismissing his wrongful discharge complaint on the ground it was barred by the applicable statute of limitations. We affirm. ¶2 We address the following issue on appeal: ¶3 Did the District Court err in dismissing Campanella’s complaint by determining that Campanella was not entitled to a statutory 120-day extension of the otherwise applicable one-year statute of limitations? FACTUAL AND PROCEDURAL BACKGROUND ¶4 On November 12, 2004, Campanella filed a complaint in District Court alleging that the Montana Department of Transportation (MDT), his former employer, wrongfully terminated his employment on July 16, 2003. Prior to filing his suit, Campanella had filed a grievance regarding his discharge with the Board of Personnel Appeals (BOPA) pursuant to § 2-18-1001, MCA. MDT moved to dismiss the complaint on three separate grounds: that Campanella’s discharge was exempted from the Wrongful Discharge From Employment Act (WDEA), because, pursuant to § 39-2-912, MCA, the discharge was subject to a state statute providing a grievance procedure and remedy for contesting the dispute; that the cause of action was barred by the one-year statute of limitations provided by § 39-2-911(1), MCA; and that Campanella had failed to exhaust administrative remedies available to him, as required by § 39-2-911(2), MCA. ¶5 Following briefing and oral argument on the motion to dismiss, the District Court entered an order determining that it would be necessary to look outside the complaint to decide whether Campanella’s action was exempted, pursuant to § 39-2-912, MCA, from the WDEA because of the existence of a separate statutory remedy, and that it could not do so at this stage of the proceeding. Alternatively, however, the court determined that Campanella’s complaint was barred by the applicable statute of limitations because he was not entitled to the 120-day tolling provided by § 39-2-911(2), MCA, and his complaint was not filed within one year. Having concluded the complaint must be dismissed for that reason, the District Court did not rule on MDT’s argument regarding failure to exhaust administrative remedies. Campanella appeals. STANDARD OF REVIEW ¶6 A complaint may be dismissed under M. R. Civ. P. 12(b)(6), only if, assuming the truth of all of the allegations of fact in the complaint, the complaint nevertheless fails to set forth a claim upon which relief can be granted. The determination that a complaint does not state a claim upon which relief can be granted is a conclusion of law, which we review to determine whether the district court’s interpretation is correct. Boreen v. Christensen, 267 Mont. 405, 408, 884 P.2d 761, 762 (1994). DISCUSSION ¶7 Did the District Court err in dismissing Campanella’s complaint by determining that Campanella was not entitled to a statutory 120-day extension of the otherwise applicable one-year statute of limitations? ¶8 The District Court, in analyzing whether Campanella’s discharge was exempted altogether from the WDEA pursuant to § 39-2-912, MCA, looked to this Court’s decision in Tonack v. Montana Bank of Billings, 258 Mont. 247, 854 P.2d 326 (1993). In Tonack, the defendant bank argued that § 39-2-912, MCA, prohibited Tonack from recovering under both the Wrongful Discharge Act and the federal Age Discrimination in Employment Act. In evaluating that contention, this Court stated: Whether a discharge will ultimately be “subject to any other state or federal statute that provides a procedure or remedy for contesting the dispute” is not immediately known when a claim is filed. This must be determined before it is known whether the Wrongful Discharge Act may be applied. It is established only when a finder of fact has made that determination or when judgment on the claim has otherwise been entered. Therefore, we conclude that claims may be filed concurrently under the Wrongful Discharge Act and other state or federal statutes described in § 39-2-912, MCA, but if an affirmative determination of the claim is obtained under such other statutes, the Wrongful Discharge Act may no longer be applied. Tonack, 258 Mont. at 255, 854 P.2d at 331. Applying this case, the District Court rejected MDT’s argument that § 2-18-1001, MCA, provided a grievance procedure for MDT employees that exempted application of the WDEA, reasoning that this issue could not yet be determined. Relying on Tonack, the District Court concluded that determining whether this grievance procedure qualified as “any other state or federal statute” for Campanella to contest his discharge for purposes of the exemption set forth in § 39-2-912(1), MCA, first required an affirmative determination that this grievance mechanism provided a procedure or remedy for contesting Campanella’s discharge, and since the court could not look beyond the complaint, such a finding could not yet be made. We agree with the District Court’s reasoning in this regard, and take no position on this issue, despite our further discussion of the BOPA grievance procedure hereinafter. ¶9 The District Court then took up MDT’s next defense-that Campanella had filed his action beyond the one-year limitation period in § 39-2-911, MCA. It was undisputed that his WDEA action was not filed within one year after his July 16, 2003, discharge. Therefore, unless Campanella was entitled to the maximum 120-day extension provided in the statute for a claimant who had first contested his discharge by pursuing the “written internal procedures” of the employer, his action would be time barred. For this defense, it was Campanella’s turn to rely on the BOPA grievance procedure provided to MDT employees -under § 2-18-1001, MCA. He argued to the District Court, and does so here, that this procedure constituted his employer’s “written internal procedures” for purposes of § 39-2-911(2), MCA, and, therefore, his pursuit of this relief gave him the 120-day extension of the one-year statute of limitations. The District Court, in denying Campanella the 120-day extension, noted that the BOPA grievance procedure was a statutory creation, and concluded that because “the grievance procedure for Department of Transportation employees [was] specified by statute,” it could not qualify as a “written internal procedure” of the employer for purposes of § 39-2-911(2), MCA. It thus dismissed Campanella’s complaint as time barred. ¶10 Section 39-2-911(1), MCA, requires that an action under the WDEA “must be filed within 1 year after the date of discharge.” Section 39-2-911(2), MCA, adds the tolling provision, providing that the one-year limitation period can be tolled for up to 120 days: If an employer maintains written internal procedures, other than those specified in 39-2-912, under which an employee may appeal a discharge within the organizational structure of the employer, the employee shall first exhaust those procedures prior to filing an action under this part.... The limitation period in subsection (1) is tolled until the procedures are exhausted. In no case may the provisions of the employer’s internal procedures extend the limitation period in subsection (1) more than 120 days. [Emphasis added.] Therefore, in order to conclude that Campanella’s pursuit of a BOPA grievance under § 2-18-1001, MCA, entitles him to a 120-day extension, it must first be determined that the BOPA procedure is a “written internal procedure” for purposes of § 39-2-911(2), MCA. Campanella contends that it is an internal procedure for MDT employees, who are designated by statute to follow it. MDT counters that the procedure is not internal to the organizational structure of MDT, but rather a statutory procedure outside the Department. ¶11 The interpretational difficulty here is created by the Legislature’s enactment of two statutes addressing administrative remedies in the employment context, but without coordination thereof. This particular problem arises only in a case involving a MDT employee, who may want to seek relief under the WDEA, but who is also subject to § 2-18-1001, MCA, which the Legislature has uniquely applied to MDT employees. That provision provides, in pertinent part, as follows: Transportation department personnel grievances-hearing. (1) An employee of the department of transportation aggrieved by a serious matter of his employment based upon work conditions, supervision, or the result of an administrative action and who has exhausted all other administrative remedies is entitled to a hearing before the board of personnel appeals, under the provisions of a grievance procedure to be prescribed by the board, for resolution of the grievance. [Emphasis added.] ¶12 Section 2-18-1001, MCA, provides MDT employees with the BOPA grievance procedure for addressing a “serious matter of his employment.” There would seem little disagreement that a discharge is a serious matter of employment, and thus applicable to Campanella’s claim. The issue, however, is whether this procedure is the employer’s “written internal procedure” for purposes of § 39-2-911(2), MCA, of the WDEA. ¶13 We disagree with the assertion that merely because this is a statutorily enacted procedure, it cannot be considered the employer’s internal procedure. The MDT is a part of state government, and the Legislature has statutorily created a procedure for MDT employees to follow. Even though enacted by statute, such a procedure could be “intemal” to those employees if so designed and intended to be by the statute. Thus, we must look further into the workings of this particular dispute resolution procedure to resolve the issue. ¶14 A reading of § 2-18-1001, MCA, reveals the language, italicized in the above quotation, which we deem to be significant. The statute expressly provides that an MDT employee must first “exhaust[] all other administrative remedies [before being] entitled to a hearing before [BOPA]....” Thus, the statute acknowledges that there may be yet other administrative remedies which an MDT employee must pursue before the employee may turn to the BOPA grievance procedure. ¶15 In interpreting a statute, we consider “the statute’s text, language, structure, and object.” S.L.H. v. State Compensation Mut. Ins. Fund, 2000 MT 362, ¶ 16, 303 Mont. 364, ¶ 16, 15 P.3d 948, ¶ 16. Although the Legislature did not coordinate the grievance provisions of § 2-18-1001, MCA, with the provisions of the WDEA in §§ 39-2-911 or 39-2-912, MCA, the two statutes bear a similarity in their construction. The WDEA requires a discharged employee to exhaust the employer’s internal written procedures prior to initiating litigation. Section 39-2-912(2), MCA. Likewise, § 2-18-1001, MCA, requires the discharged MDT employee to exhaust other administrative remedies prior to commencing a BOPA grievance proceeding. ¶16 This correlation leads us to conclude that the BOPA grievance procedure cannot be considered a “written internal procedure” for purposes of § 39-2-911(2), MCA. Clearly, § 2-18-2001, MCA, contemplates other administrative remedies for the MDT employee which must be exhausted prior to the initiation of a BOPA proceeding. It is apparent that the Legislature intended these other remedies to be the mandatory “internal procedures” for those employees. ¶17 Consequently, we conclude that the District Court correctly held that Campanella missed the filing deadline for his WDEA action, because the one-year statute of limitations found in § 39-2-911(1), MCA, expired before Campanella filed his complaint, and the 120-day extension provided for in § 39-2-911(2), MCA, was not applicable, as the BOPA procedure provided for in § 2-18-1001, MCA, was not the employer’s written internal procedure. ¶18 Affirmed. JUSTICES LEAPHART, NELSON, COTTER, WARNER and MORRIS concur. Section 39-2-912(1), MCA, states, in part: “Exemption. This part [the WDEA] does not apply to a discharge... that is subject to any other state or federal statute that provides a procedure or remedy for contesting the dispute.” Companella’s complaint was filed one year and 119 days following his discharge.
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On May 1, 2002, the defendant was sentenced to the following: Count I: Forty (40) years in the Montana State Prison, with twenty (20) years suspended, for the offense of Conspiracy, a felony; Count II: Twenty (20) years in the Montana State Prison, to run concurrently with Count I, for the offense of Attempted Criminal Possession With Intent to Distribute, a felony; Count III: Twenty-five (25) years in the Montana State Prison, to run consecutive to Count I & II, for the offense of Operation of an Unlawful Clandestine Laboratory, a felony; and Ten (10) years in the Montana State Prison for Persistent Felony Offender Status, to run consecutive to Counts I - III. DATED this 17th day of March, 2006. On March 7, 2006, 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 advised of his right to be represented by counsel. 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 increase it. 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 continue his hearing to have court appointed counsel represent him at his sentence review hearing. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be continued to the next available hearing date in May 2006. Done in open Court this 7 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On June 15, 2006, the defendant was sentenced to the following: Count I: Twenty (20) years in the Montana State Prison, with five (5) years suspended for the offense of Forgery - Common Scheme, a felony; and Count II: A commitment to the Cascade County Detention Center for a term of six (6) months, with no time suspended, to run concurrently with Count I, for the offense of Theft, a misdemeanor. On November 3, 2006, 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 James Gardner. The state was represented by Joel Thompson. 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 increase it. The defendant was finisher 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 19th day of November, 2006. Mr. Gardner informed the Sentence Review Division that a Notice of Appeal was recently filed with the Montana Supreme Court in this matter. Therefore, it is the unanimous decision of the Sentence Review Division that Pursuant to Rule 7 of the Rules of the Sentence Review Division of the Supreme Court of Montana, the application for sentence review will be held in abeyance pending the outcome of the appeal. Notification to the Sentence Review Division must be made within sixty (60) days from the date in which the appeal is decided if a review of sentence is still desired. Done in open Court this 3rd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On October 13, 1998, the defendant was sentenced to Count I: Ten (10) years in the Montana State Prison, for the offense of Assault, a felony; and Ten (10) years in the Montana State Prison for use of a weapon during the commission of the offense, to run consecutively to Count I and with the sentence imposed in Cause No. DC-97-108. On March 6, 2006, 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 Ann German. 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 increase it. The defendant was farther advised that there is no appeal from a decision of the Sentence Review Division. The defendant informed the Sentence Review Division that he did not understand the process of the sentence review hearing. Ms. German requested a continuance in this matter to have additional time to explain the process of a sentence review hearing to the defendant and what other options may be available to him. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be continued to the August 2006 sentence review hearings to allow counsel time to prepare the defendant for his sentence review hearing. Done in open Court this 6 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On February 27, 2006, the defendant was sentenced to the following: Count I: Twenty-five (25) years in the Montana State Prison, with the last five (5) years suspended, for the offense of Sexual Assault, a felony; Count II: Twenty-five (25) years in the Montana State Prison, with the last five (5) years suspended, for the offense of Sexual Assault, a felony; Count III: Twenty-five (25) years in the Montana State Prison, with the last five (5) years suspended, for the offense of Sexual Abuse of Children, a felony; and Count IV: Three (3) years in the Montana State Prison for the offense of Tampering with witnesses and Informants, a felony. Counts I, II, III, and IV shall run concurrently with each other and with criminal cause number DC-05-0441. It is further ordered that the Defendant be ineligible for parole until said defendant has successfully completed Phases I and II of the Sex Offender Treatment Program. On August 10, 2006, 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 Jana McGill. The state was represented by Mark Murphy. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 10th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Alt. Member, Hon. Douglas Harkin and Member, Hon. Katherine Irigoin.
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On April 24, 2006, the defendant was sentenced to a commitment to the Department of Corrections for a term of three (3) years for violation of the conditions of a suspended sentence for the offense of Failure to Register as a Sex Offender, a felony. On November 2, 2006, 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 Brandon Hartford. 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 increase it. 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. Rule 17 of the Redes of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 2nd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger
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On May 1, 2002, the defendant was sentenced to the following: Count I: Forty (40) years in the Montana State Prison, with twenty (20) years suspended, for the offense of Conspiracy, a felony; Count II: Twenty (20) years in the Montana State Prison, to run concurrently with Count I, for the offense of Attempted Criminal Possession With Intent to Distribute, a felony; Count III: Twenty-five (25) years in the Montana State Prison, to run consecutive to Count I & II, for the offense of Operation of an Unlawful Clandestine Laboratory, a felony; and Ten (10) years in the Montana State Prison for Persistent Felony Offender Status, to run consecutive to Counts I - III. DATED this 26th day of May, 2006. On May 4, 2006, 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 Mathew Stevenson. The state was not represented. Before hearing the application, counsel for the defendant advised the Sentence Review Division that he was recently appointed to represent the defendant and he wished to continue the sentence review hearing in order to request and review the sentencing transcripts and have additional time to prepare for the sentence review hearing. Mr. Stevenson informed the Sentence Review Division that he made the Ravalli County Attorney’s office aware of his intent to request a continuance in this matter. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be continued to August 10, 2006 at 1:00 p.m. Done in open Court this 4 th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On October 13,1998, the defendant was sentenced to Ten (10) years in the Montana State Prison and Ten (10) years in the Montana State Prison, for use of a weapon during the commission of the offense of Assault on a Peace Officer, a felony, to run consecutively with each other and with the sentence imposed in Cause No. DC-97-95. On March 6, 2006, the defendant’s application for review of that sentence was heard hy the Sentence Review Division of the Montana Supreme Court. The defendant was present and was represented by Ann German. 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 increase it. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant informed the Sentence Review Division that he did not understand the process of the sentence review hearing. Ms. German requested a continuance in this matter to have additional time to explain the process of a sentence review hearing to the defendant and what other options may be available to him. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be continued to the August 2006 sentence review hearings to allow counsel time to prepare the defendant for his sentence review hearing. Done in open Court this 6th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 A jury convicted Jeffrey Hausauer (Hausauer) of operating a methamphetamine laboratory in the Fourth Judicial District, Missoula County. The District Court designated Hausauer as a persistent felony offender and sentenced him accordingly. On appeal, Hausauer contends the District Court should have granted his motion for a directed verdict of acquittal because the State failed to prove the elements of the charged offense. In the alternative, should we decline to reverse on this basis, Hausauer contends the District Court erred when it failed to dismiss for cause two jurors who during voir dire revealed biases which made them unable to impartially evaluate Hausauer’s case, and improperly instructed the jury on unanimity. Hausauer seeks reversal and an order for a directed verdict of acquittal, or alternatively reversal for a new trial. We affirm in part, reverse in part, and remand for a new trial. ISSUES ¶2 The issues on appeal are: ¶3 1. Did the District Court abuse its discretion by denying Hausauer’s motion for a directed verdict of acquittal? 2. Did the District Court abuse its discretion by denying Hausauer’s motions to excuse two jurors for cause? 3. Did the District Court err by failing to properly instruct the jury on unanimity? FACTUAL AND PROCEDURAL BACKGROUND ¶4 Early on the morning of August 23, 2002, flames engulfed a camping trailer occupied by Hausauer in a residential neighborhood in Missoula, Montana. Although the source of the fire was never determined, evidence gathered at the scene led law enforcement officers to suspect the fire was caused by an accidental explosion resulting from methamphetamine production. On November 19, 2003, the State charged Hausauer by information with purposely or knowingly engaging in the procurement, possession, or use of chemicals, precursors to dangerous drugs, supplies, equipment, or a laboratory for criminal production or manufacture of dangerous drugs in violation of § 45-9-110, MCA. Hausauer pled not guilty on December 31, 2003. ¶5 A two day jury trial commenced on June 25, 2004. In response to voir dire questions, two prospective jurors, L.H. and B.M., voluntarily admitted they had doubts about their abilities to be objective about Hausauer’s case. Hausauer moved to dismiss L.H. and B.M. for cause. The District Court denied Hausauer’s motions. Hausauer then used peremptory challenges to dismiss the two jurors. Hausauer used all six of the peremptory challenges available to him by the time jury selection concluded. The District Court excused for cause eight other prospective jurors not at issue here. ¶6 The State presented circumstantial evidence to support its charge against Hausauer because no direct evidence showed he operated a methamphetamine lab in the camper that burned. It was undisputed, however, that Hausauer inhabited the camper, occupied the camper when it caught fire, and sustained severe burns to his hands, arms, legs and torso before he exited the burning camper. Further, the camper’s charred remains contained many items which are commonly used to produce methamphetamine. Police found in the camper a cooler containing dry ice and a bottle with traces of methamphetamine in it. Police also found two square metal cans of the same type as those which typically hold Coleman fuel or paint thinner, lye, a packaging label for hydrochloric acid, and a partially burned bottle of “Heet,” a fuel line anti-freeze consisting of isopropyl alcohol-all known ingredients for methamphetamine production. Additionally, a detective found paraphernalia typically used to facilitate the ingestion of methamphetamine-three lighters, a spoon, matches, a spray bottle, and a razor blade-in the clothing and fanny pack Hausauer wore when he arrived at the hospital for treatment of his burns and smoke inhalation. Finally, the burned camper lacked power, propane, running water, and sewage facilities-facts which further raised suspicions that Hausauer used the camper to produce methamphetamine and not for living quarters. ¶7 At the close of the State’s case-in-chief, Hausauer moved for a directed verdict of acquittal on grounds the State failed to prove the elements of the charged offense. Specifically, Hausauer argued the State presented no evidence as to any incriminating act or omission on his part, and as a result the jury had no basis for inferring his mental state. Hausauer also contended the evidence showed he legally possessed, for non-drug related purposes, the camper and all of the items found in it. The District Court denied Hausauer’s motion for a directed verdict, and the trial proceeded. ¶8 At the close of arguments the District Court instructed the jury on several topics, including unanimity. The court instructed, “[t]he law requires the jury verdict in this case to be unanimous. Thus, all twelve of you must agree in order to reach a verdict whether the verdict be guilty or not guilty.” Hausauer did not object to the court’s general instruction, nor did Hausauer offer an alternative specific instruction on unanimity. ¶9 On June 29,2004, the jury found Hausauer guilty of operating an unlawful clandestine laboratory in violation of §45-9-132(3), MCA, and the District Court designated him as a persistent felony offender pursuant to § 46-18-501, MCA. On October 14,2004, the District Court sentenced Hausauer to twenty years imprisonment at the Montana State Prison, with fifteen years suspended, for the offense. The court sentenced Hausauer to an additional twenty years with five years suspended due to his persistent felony offender status. The sentences run consecutively. Hausauer appeals from his conviction raising three issues. We affirm on Issue One, reverse and remand for a new trial on Issue Two, and decline to resolve Issue Three. STANDARDS OF REVIEW ¶10 We review a district court’s denial of a motion for a directed verdict for an abuse of discretion. State v. McGarvey, 2005 MT 308, ¶ 13, 329 Mont. 439, ¶ 13, 124 P.3d 1131, ¶ 13 (citation omitted). We also review a trial court’s denial of a challenge for cause for an abuse of discretion. State v. Golie, 2006 MT 91, ¶ 6, 332 Mont. 69, ¶ 6, 134 P.3d 95, ¶ 6 (citation omitted). A court abuses its discretion if it fails to excuse for cause a prospective juror whose actual bias is discovered during voir dire. State v. Heath, 2004 MT 58, ¶ 7, 320 Mont. 211, ¶ 7, 89 P.3d 947, ¶ 7 (citation omitted). ¶11 We review jury instructions in criminal cases to determine whether the instructions as a whole fully and fairly instruct the jury on the applicable law. State v. Azure, 2005 MT 328, ¶ 8, 329 Mont. 536, ¶ 8, 125 P.3d 1116, ¶ 8. A district court has broad discretion in formulating jury instructions, and our standard of review is whether the court abused that discretion. Azure, ¶ 8 (citation omitted). ISSUES ISSUE ONE ¶12 1. Did the District Court abuse its discretion by denying the defendant’s motion for a directed verdict of acquittal? ¶13 At the outset, we determine whether the District Court abused its discretion when it denied Hausauer’s motion for a directed verdict of acquittal. We do so because Hausauer requests disposition of this issue first, and were we to decide this issue in Hausauer’s favor, we would not reach the remaining issues. We determine the District Court did not abuse its discretion in this regard. ¶14 Hausauer argues the State failed to present sufficient evidence to prove he possessed the mental state necessary to commit the charged crime, and therefore failed to prove an essential element of the charge. Hausauer contends the State presented no evidence of anything he did, or failed to do, from which the jury could infer his mental state. Further; he argues that all of the items found in the camper Hausauer occupied could be lawfully purchased and lawfully used for purposes other than drug production. As a result, the State failed to meet its burden of proof against Hausauer, and he should have been acquitted as a matter of law. ¶15 The State counters that the District Court properly submitted the charge of operating an unlawful clandestine laboratory to the jury. Sufficient evidence existed for the jury to infer Hausauer’s mental state from surrounding circumstances, including the fact that Hausauer occupied the camper trailer which contained methamphetamine as well as items commonly used to manufacture methamphetamine. As a result, Hausauer’s culpability was a question off act — not a question of law-appropriate for the jury’s determination. We agree. ¶16 A directed verdict of acquittal is appropriate only when no evidence exists to support a guilty verdict. State v. LaMere, 2003 MT 49, ¶ 19, 314 Mont. 326, ¶ 19, 67 P.3d 192, ¶ 19 (citations omitted) (emphasis added). No abuse of discretion results from denial of a motion for a directed verdict of acquittal when the evidence presented is viewed in a light most favorable to the prosecution, and a rational trier of fact could find the essential elements of a crime beyond a reasonable doubt. State v. Longstreth, 1999 MT 204, ¶ 16, 295 Mont. 457, ¶ 16, 984 P.2d 157, ¶ 16 (citations omitted). ¶17 The State charged Hausauer with purposely or knowingly engaging in the procurement, possession, or use of chemicals, precursors to dangerous drugs, supplies, equipment, or a laboratory for criminal production or manufacture of dangerous drugs in violation of § 45-9-110, MCA. At the time the District Court denied Hausauer’s motion for a directed verdict, the court had before it testimonial evidence given by the fire inspector and police investigators who found numerous items commonly used to manufacture methamphetamine in the charred remains of Hausauer’s camper. Missoula Fire Marshall Nate Nunally testified he found two square metal cans which he suspected once contained fuel or paint thinner. Officers found lye, a packaging label for hydrochloric acid, and a partially burned bottle of “Heet.” Police also found a cooler which contained dry ice and a bottle with white residue in it which State Crime Lab forensic chemist, Bahne Ann Kleitz, tested and identified as methamphetamine. ¶18 Each of the items found in Hausauer’s camper may be used to manufacture methamphetamine. None of the items-whether in isolation, or collectively-conclusively proved Hausauer operated a clandestine lab where he manufactured methamphetamine. In fact, the exact contents of many of the found containers remain unidentified. However, the District Court correctly concluded the State’s evidence was sufficient to allow the jury to weigh the State’s case to determine whether the State met the burden of proof required to convict Hausauer. We conclude the District Court did not abuse its discretion when it denied Hausauer’s motion for a directed verdict of acquittal because sufficient evidence existed to allow the jury to determine the question of Hausauer’s guilt. ISSUE TWO ¶19 2. Did the District Court abuse its discretion by denying Hausauer’s motions to excuse two jurors for cause ? ¶20 The right to trial by an impartial jury is guaranteed by the Sixth Amendment to the United States Constitution and Article II, Section 24 of the Montana Constitution. The bases for challenging prospective jurors for cause in a Montana criminal case are specified by statute. See § 46-16-115(2), MCA. A district court may take a challenge for cause in a criminal case when the court determines a juror has a state of mind in reference to the case or to a party that would prevent the juror from acting with “entire impartiality and without prejudice to the substantial rights of either party.” Section 46-16-115(2)(j), MCA. This Court determines challenges under § 46-16-115(2)(j), MCA, pursuant to both the statutory language and the totality of the circumstances presented. State v. Harville, 2006 MT 292, ¶ 9, 334 Mont. 380, ¶ 9, 147 P.3d 222, ¶ 9, citing Golie, ¶ 8. Structural error occurs and requires reversal when a District Court abuses its discretion in denying a defendant’s challenge for cause, the defendant uses a peremptory challenge to dismiss the biased juror, and the defendant ultimately exhausts all of the peremptory challenges available to him. Heath, ¶ 7 (citation omitted). ¶21 Hausauer contends two prospective jurors, B.M. and L.H., revealed biases during voir dire which prevented them from evaluating Hausauer’s case impartially. Hausauer posits B.M. and L.H. should have been dismissed for cause as he requested. After the District Court denied his motions to dismiss, Hausauer used peremptory challenges to dismiss both jurors, and ultimately exhausted the six peremptory challenges available to him. Hausauer argues the District Court abused its discretion in denying his motions, and reversal for a new trial is required. ¶22 We agree that B.M. should have been dismissed for cause, and a new trial is required here. We therefore decline to address Hausauer’s contentions with regard to L.H. ¶23 When voir dire questioning reveals a serious question about a prospective juror’s ability to be fair and impartial, that question should be resolved in favor of excusing that juror. State v. DeVore, 1998 MT 340, ¶ 25, 292 Mont. 325, ¶ 25, 972 P.2d 816, ¶ 25 (citation omitted) (overruled in part on other grounds by State v. Good, 2002 MT 59, 309 Mont. 113, 43 P.3d 948). In determining whether a serious question arose regarding a prospective juror’s ability to be fair and impartial, we review her voir dire responses as a whole. Harville, ¶ 10, citing Golie, ¶¶ 11-29 and Heath, ¶¶ 17-41. In reviewing a challenge for cause based on a juror’s state of mind we emphasize the juror’s spontaneous, and usually initial, statements or responses. Harville, ¶ 9, citing Golie, ¶ 26. ¶24 During voir dire, B.M. was questioned about Hausauer’s entitlement to a presumption of innocence. B.M. revealed that she believed Hausauer would not be standing trial “if there wasn’t something connecting him to the crime.” B.M. indicated she would only be convinced Hausauer was not guilty if evidence was presented that proved his innocence. ¶25 In Devore, we remanded for a new trial on facts similar to those presented here. ¶ 43 (overruled in part on other grounds). In that case, we concluded the trial court abused its discretion when it failed to dismiss two jurors who repeatedly responded to questions regarding their perception of the defendant’s guilt in relation to the presumption of innocence they would be required to apply as jurors. Both jurors adhered to their belief that the defendant must be “guilty of something” or he would not have been on trial. Throughout repeated questioning, neither juror wavered from his belief that the defendant’s presence in the courtroom carried weight, therein revealing their inability to afford the defendant a presumption of innocence. DeVore, ¶¶ 15-24 (overruled in part on other grounds). ¶26 Here, B.M.’s statements and responses to questions during voir dire revealed her inability to apply a presumption of innocence and objectively evaluate Hausauer’s culpability in this case. [Defense counsel]: [B.M.], what’s your-your opinion about the fact that Mr. Hausauer’s been charged and how do you feel about the presumption of innocence? [B.M.]: I have to assume that there was-was some circumstance that-that the police department felt that there’s reason for him to be here today. [Defense counsel]: Okay. And what will you do with that? [B.M.] : Listen to the testimony and decide if it’s-if it’s enough. [Defense counsel]: Okay. [B.M.]: If it’s accurate. [Defense counsel]: Now how are the scales tipped right now? You say there had to be some reason for him being here. I’m talking to you about the presumption of innocence. So we’re-how are the scales tipped right now in your mind? [B.M.]: Well, that’s hard to-I guess my scales might be tipped a little towards-that there-there’s condemning evidence. [Defense counsel]: So - [B.M.]: I don’t think you get to this point without that. [Defense counsel]: Okay. Now I’m going to tell you that the judge will say to you he’s presumed innocent, and the charges are absolutely not evidence at all. When the judge tells you that, can you put aside your kind of sense to the contrary and go with what the judge says, or are you going to have some lingering doubt that’s not good for Mr. Hausauer? [B.M.]: Well, I — I—I guess I’d have to truthfully say I-I-I look forward to-to going through the evidence but, no, that there’s-there’s just a-an inkling that-that the police, the fire department, must have a pretty good idea that there’s a link. [Defense counsel]: Okay.... If you were on trial, would you want to be judged by a juror who has your attitude and feeling about this? [B.M.]: Well, I... can listen to the evidence. I think it’s hard to say that anybody doesn’t think that-that this person is-is here because he just happened to be in a motor home. [Defense counsel]: Well, I’ve conceded he wasn’t on his way to church. [B.M]: Yes, but I’m-I’m a fair person but-so what-what I want-so would I want me on my jury? No. [Defense counsel]: Okay. And why is that? [B.M.]: Just because what ... I said. I ... believe in ... the police department’s ability to investigate and I don’t think if-if there wasn’t enough circumstantial evidence to get him here he wouldn’t be here today. [Defense counsel]: Okay. So you ... believe that the fact he’s been charged has weight. [B.M.]: Yes. [Defense counsel]: And you have a hard time putting aside the presumption of innocence because you think that there’s some evidence to the contrary at-at this juncture. [B.M.]: Yes. ¶27 Defense counsel then moved for B.M.’s dismissal for cause, and the District Court asked the State for its position. State’s counsel then attempted to contrast for B.M the level of proof necessary to establish probable cause to arrest Hausauer from the “proof beyond a reasonable doubt” standard the State would be required to meet at trial. However, State’s counsel never articulated her question in a manner which was understandable to B.M., who remained confused about the distinction the State was trying to make. Ultimately, however, B.M. clearly said that because Hausauer was on trial for a crime, she did not presume he was innocent. Hausauer would need to show evidence of his innocence before B.M. could find him not guilty, as evidenced by her responses to the State’s questions, below: [State]: You will hear the evidence from the officers and the other people at the scene, which is why we’re here, but my duty is to prove to you beyond a reasonable doubt not just that he had a reason to be here but beyond a reasonable doubt that he did what I say he did to get here. Does that make sense? Is that something you can differentiate in your mind? [B.M.]: Well, I’m not-I’m still not sure I understand the question but- [State]: Me either so- [B.M.]: I ... I know I can go through the evidence and-and differentiate that fairly but I-but I’m not going to lie to you. I’m going to tell you I-I don’t think he’d be here if there wasn’t something connecting him to the crime. [State]: And if I-let’s say my evidence does not prove that to you. That somehow it comes out that he was on his way to Sunday school. Are you able to then- [B.M.]: Yes, I can do that. [State]: -find him not guilty? [B.M.]: I can-I can do that, yes. The State objected to Hausauer’s motion to remove B.M. for cause, and the District Court denied the motion. Hausauer used a peremptory challenge to dismiss B.M. ¶28 The State contends that even though B.M. “believed the scales [of justice] might be ‘tipped’ towards the existence of condemning evidence, she could listen to the evidence” before making an ultimate determination of Hausauer’s guilt. We disagree. Taken as a whole, B.M.’s statements and responses during voir dire reveal she firmly-believed there must be a good reason that Hausauer was on trial. The mere fact that he was charged with a crime, combined with her confidence in law enforcement, carried weight in her mind. B.M.’s statements and responses dining voir dire revealed a serious question as to B.M.’s ability to afford Hausauer the presumption of innocence to which he was entitled. ¶29 We reiterate our preference for dismissal for cause when voir dire reveals a “serious question about a prospective juror’s ability to be fair and impartial.” Harville, ¶ 9, citing State v. Richeson, 2004 MT 113, ¶ 14, 321 Mont. 126, ¶ 14, 89 P.3d 958, ¶ 14. “While there may be some temporary inconvenience to the court and to the parties from excusing a juror for cause, that inconvenience is minor compared to the expense and inconvenience that results from having to retry criminal cases.” DeVore, ¶ 25, citing State v. Williams, 262 Mont. 530, 539-40, 866 P.2d 1099, 1104-05 (1993) (overruled in part on other grounds by Good, 2002 MT 59, 309 Mont. 113, 43 P.3d 948). The District Court’s failure to dismiss B.M. for cause was an abuse of discretion, and resulted in structural error which requires a new trial. ISSUE THREE ¶30 3. Did the District Court err by failing to properly instruct the jury on unanimity? ¶31 In essence, Hausauer argues the District Court’s general instruction on unanimity was insufficient because the complex statute under which Hausauer was charged created potential juror confusion regarding unanimity. Specifically, the court failed to clarify that to convict him all twelve jurors must agree that particular criminal acts by Hausauer corresponded to particular elements of his crime. ¶32 We reverse Hausauer’s case for a new trial on Issue Two, and therefore need not reach the merits of Hausauer’s claim regarding the District Court’s unanimity instruction. We recognize, however, that the District Court will on remand instruct a jury with regards to Hausauer’s right to a unanimous verdict. The right to a unanimous jury verdict is a fundamental right protected by Article II, Section 26 of the Montana Constitution. State v. Vernes, 2006 MT 32, ¶ 21, 331 Mont. 129, ¶ 21, 130 P.3d 169, ¶ 21, citing State v. Weaver, 1998 MT 167, ¶ 26, 290 Mont. 58, ¶ 26, 964 P.2d 713, ¶ 26. “Unanimity means more than an agreement that the defendant has violated the statute in question; it requires substantial agreement as to the principal factual elements underlying a specific offense.” Vernes, ¶ 21 (citation omitted). On remand, the unanimity instructions should fully and fairly instruct the jury on the applicable law. State v. DuBray, 2003 MT 255, ¶ 88, 317 Mont. 377, ¶ 88, 77 P.3d 247, ¶ 88 (citation omitted). CONCLUSION ¶33 For the foregoing reasons, we reverse and remand for a new trial. CHIEF JUSTICE GRAY, JUSTICES NELSON, LEAPHART, MORRIS and RICE concur.
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On January 11, 2006, the defendant was sentenced to the following: Count I: Twenty (20) years in the Montana State Prison, for the offense of Sexual Intercourse Without Consent, a felony; and Count II: Twenty (20) years in the Montana State Prison, all suspended, to run consecutively to Count I, for the offense of Sexual Intercourse Without Consent, a felony. DATED this 26th day of May, 2006. On May 4, 2006, 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 advised of his right to be represented by counsel. 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 increase it. 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 continue his hearing to pursue an appeal with the Supreme Court of Montana. Pursuant to Rule 7 of the Rules of the Sentence Review Division, “when there is a pending appeal or request for post conviction relief, the application for Sentence Review should not be filed until such time as the petition for post conviction relief or the appeal has been determined, at which time the defendant shall be given sixty (60) days in which to file for review of the sentence.” Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be held pending notification of the defendant to the Sentence Review Division within sixty (60) days after the Montana Supreme Court’s decision. Done in open Court this 4th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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JUSTICE WARNER delivered the Opinion of the Court. ¶1 John W. Ray (Ray) appeals two District Court Orders entered in the First Judicial District, Lewis & Clark County. The first affirmed the Montana Human Rights Commission’s dismissal of his discrimination claims. The second order granted summary judgment to Montana Tech and the individual defendants, dismissing Ray’s claims brought under 42 U.S.C. § 1983, wherein he alleged that his civil rights were violated when his contract as a department head at Montana Tech was not renewed. We affirm. ¶2 Ray has stated the issues he brings on appeal as follows: ¶3 1. Did Montana Tech discriminate against Ray because of his political beliefs and in violation of his constitutional right to freedom of speech? ¶4 2. Did Montana Tech discriminate against Ray on the basis of his marital status? ¶5 3. Did Montana Tech violate Ray’s right to due process? BACKGROUND ¶6 Ray joined the Montana Tech faculty in 1975 and began serving as a full professor of humanities and social sciences in 1990, a position he continued to hold at the time he commenced this litigation. Ray was named program manager of liberal studies in August 1997. In August 1998, Ray was named head of a newly created Liberal Studies Department, a move which increased his salary by $2,500 per year. As department head, Ray’s immediate supervisors were Douglas Abbott (Abbott), dean of the College of Humanities, Social Sciences and Information Technology, and Daniel J. Bradley (Bradley), academic vice chancellor. ¶7 Ray and Bradley had a history of conflict. In June 1998, while petroleum engineering dean, Bradley discussed with liberal studies faculty member Henry Gonshak (Gonshak) the possibility of Gonshak teaching a new course for engineering students. Ray, as program manager, angrily objected to Bradley’s failure to initiate the discussion with him, and also made these complaints to the faculty senate after becoming department head. ¶8 In early 1999, Ray voted against Gonshak’s promotion to full professor, even though a consensus of the department supported the promotion. Later, Ray wrote a letter expressing tepid support for Gonshak. The record indicates Bradley, Abbott, and Gilmore, Montana Tech chancellor, believed that Ray’s actions suggested retaliation for Gonshak’s previous cooperation with Bradley. ¶9 In February 1999, Ray challenged Montana Tech’s authority to require faculty members to teach evening classes. On another occasion, Ray questioned the legal basis of a request by Bradley and Abbott to investigate complaints alleging that a faculty member came to classes drunk. Gilmore, Bradley and Abbott considered Ray’s handling of these matters to be inappropriate. ¶10 Also, in what Bradley and Abbott considered indicative of Ray’s adversarial approach to the Montana Tech administration, Ray asked for and received permission to tape two meetings with administrators, saying that taping would provide a more accurate record of the meetings. ¶11 In March 1999, Roberta Ray (Roberta), Ray’s wife and a member of Montana Tech’s liberal studies faculty, suffered an ankle injury. During a telephone conversation between Roberta and Abbott concerning relocating Roberta’s office to a building with disability access, Roberta hung up on Abbott. When Abbott called her back, Ray answered and took up the argument on behalf of Roberta. Abbott interrupted Ray, saying he needed to talk to Ray as department head, not as Roberta’s husband. ¶12 Ray was involved in environmental advocacy through various organizations, ballot initiatives, and public speaking engagements. In April 1999, Ray gave a talk at a mine waste technology conference criticizing the mining industry and the environmental insensitivity of engineering students. Following the talk, multiple audience members complained to Gilmore, urging him to fire or discipline Ray. Gilmore agreed with some of the comments and referred to Ray as an “environmental bigot.” Gilmore also received a complaint from one audience member concerning a talk by another speaker associated with Montana Tech, but did not investigate this complaint. Although he did take some actions to investigate Ray’s comments at the conference, Gilmore took no adverse action against him. ¶13 Also, while Ray served as department head, a long-standing conflict between him and Joanne Córtese, head of the Professional Technical Communications Department, continued. In October 1998, Bradley and Abbott met with both Ray and Córtese to discuss a possible resolution of this conflict. Bradley ordered that Ray and Córtese take initial steps to resolve their differences. Ray did not do so. Rather, he complained to the faculty senate. Gilmore, Bradley and Abbott considered Ray’s complaint inaccurate and felt that he should not have raised the issue with the faculty senate. ¶14 Another meeting regarding the on-going interdepartmental conflict took place in June 1999, with Bradley, Abbott, Ray and Córtese attending. Bradley and Abbott proposed a possible solution involving physical relocation and faculty realignments. Ray agreed to take the proposals to his department for discussion, causing Gilmore to comment that Ray “had grown” in his position as department head. Ray discussed the proposals in the Liberal Studies Department, making clear his opposition. He also sent an e-mail to his supervisors on June 30,1999, in which he likened the proposals to harassment and threatened to mobilize students and others to oppose the relocation proposal at every step. Gilmore, Bradley and Abbott considered the content of this e-mail to be inappropriate for a department head. ¶15 Bradley and Abbott met to discuss whether to recommend renewal of Ray’s position as department head. Abbott prepared a draft evaluation in the event they decided to recommend Ray’s renewal. However, in this draft he noted that Ray had difficulty in distinguishing between his role as department head and his role as husband to another department member. Bradley and Abbott did not discuss the contents of Abbott’s draft evaluation recommending renewal of Ray as department head. Rather, they decided they would not recommend that Ray’s contract as a department head be renewed. At this meeting they did not discuss or consider Ray’s marital status or his environmental activism. Abbott did not give a copy of the draft evaluation, or any other formal evaluation, to Ray. ¶16 Ata July 1999 meeting, Gilmore, Bradley, and Abbott, along with John Hintz, vice chancellor for administration, and Maggie Peterson, human resources director, discussed concerns regarding Ray’s performance as department head. Specifically, they discussed Ray’s handling of the on-going conflict between departments, the night class scheduling issue, his reluctance to investigate an allegedly drunk faculty member, his taping of meetings, his reaction to Bradley’s discussion with Gonshak, his subsequent treatment of Gonshak, and his e-mail of June 30, 1999. ¶17 Abbott later gave conflicting testimony about whether Ray’s marital status was discussed at the July 1999 meeting. However, all of the other individuals at the meeting stated that Ray’s marital status was not discussed. Nor was Ray’s environmental activism discussed at this meeting. The group decided not to renew Ray as department head. Abbott wrote a letter the same day informing Ray of this decision. ¶18 Department heads at Montana Tech signed one-year contracts. Although such contracts were typically renewed for successive one-year terms of five to seven years, the decision was made not to renew Ray after he had served in the position for less than a year. He was the only department head not renewed at that time. ¶19 While department heads were often renewed for several successive years, the Policy and Procedures Manual of the Mont. Bd. of Regents of Higher Educ., which applies at Montana Tech, provided that academic administrators serve at the discretion of the chancellor. Also, Ray’s appointment as a department head was governed by an express policy prohibiting a guarantee of multi-year renewal of such positions. ¶20 Neither Ray’s interim nor permanent replacements were environmental activists or married to other department members. ¶21 Ray filed two complaints with the Department of Labor and Industry, Human Rights Commission. One complaint alleged discrimination against him because of his political beliefs and the other alleged discrimination based on marital status. These complaints were consolidated for hearing. The hearing examiner filed a Final Agency Decision in January 2002 wherein he determined that both of Ray’s claims should be dismissed. The hearing examiner found that although Ray established a prima facie case of both political belief and marital status discrimination, Montana Tech had established legitimate business reasons for Ray’s non-renewal. The hearing examiner then determined that Ray failed to prove that the reasons given by Montana Tech for his non-renewal as department head were pretextual. The Human Rights Commission affirmed the Final Agency Decision in May 2002. ¶22 Ray then filed a complaint in District Court seeking review of the Commission’s decision. He later amended his complaint, adding counts which alleged violation of his right to freedom of speech and the denial of his right to due process. The District Court granted Montana Tech’s unopposed motion to bifurcate the action between the claims heard before the Human Rights Commission and those brought for the first time in Ray’s amended complaint. ¶23 In a Memorandum and Order, filed in February 2004, the District Court affirmed the Commission’s order affirming the Final Agency Decision. Subsequently, by Memorandum and Order filed November 2004, the District Court granted Montana Tech’s motion for summary judgment dismissing the civil rights claims in Ray’s amended complaint which alleged violation of his rights to due process and freedom of speech. Ray timely appealed both Orders. STANDARD OF REVIEW ¶24 When reviewing an agency decision, a district court may not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. Section 2-4-704(2), MCA. In a contested case, a district court reviews an administrative decision to determine whether the findings of fact are clearly erroneous and whether the agency correctly determined the law. Ostergren v. Dept. of Revenue, 2004 MT 30, ¶ 11, 319 Mont. 405, ¶ 11, 85 P.3d 738, ¶ 11. We have adopted the following three-part test to determine if a finding is clearly erroneous: (1) the record will be reviewed to see if the findings are supported by substantial evidence; (2) if the findings are supported by substantial evidence, it will be determined whether the [deciding body] misapprehended the effect of evidence; and (3) if substantial evidence exists and the effect of evidence has not been misapprehended, the Supreme Court may still decide 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. Weitz v. Dept. of Nat. Resources & Conserv., 284 Mont. 130, 133-34, 943 P.2d 990, 992 (1997). This Court employs the same standards when reviewing a district court’s order affirming an administrative decision. Ostergren, ¶ 11. ¶25 We review a district court’s summary judgment ruling de novo, by applying the criteria in M. R. Civ. P. 56. Town of Clyde Park v. Younkin, 2004 MT 274, ¶ 9, 323 Mont. 197, ¶ 9, 99 P.3d 196, ¶ 9. The moving party must demonstrate both the absence of genuine issues of material fact and that they are entitled to judgment as a matter of law. Clyde Park, ¶ 9. If there is no genuine issue of material fact, we then review the district court’s conclusions of law for correct interpretation of the law. Clyde Park, ¶ 9. DISCUSSION ISSUE ONE ¶26 Did Montana Tech discriminate against Ray because of his political beliefs and in violation of his constitutional right to freedom of speech? ¶27 In his statement of this first issue, and in his briefing, Ray has taken a shotgun approach. In a twisted and confusing manner, he has combined his appeal of the District Court’s order affirming the Commission with his appeal of the District Court’s grant of summary judgment dismissing his 42 U.S.C. § 1983 civil rights claim. For the sake of clarity, we discuss these claims separately. A. Complaint of political discrimination before the Montana Human Rights Commission. ¶28 According to Ray, he held environmental beliefs which were known to Montana Tech and, when he espoused those beliefs publicly, the school unlawfully discriminated against him by refusing to renew his contract as department head. He claims the non-renewal of his contract violated § 49-2-308(1)(c), MCA, which makes it unlawful for Montana Tech to discriminate against a person in his employment because of his political beliefs, and also violated § 49-3-201(1), MCA, which requires Montana Tech to appoint, assign and promote personnel on the basis of merit without regard to political ideas. ¶29 In analyzing Ray’s political discrimination claim before the Commission, both the hearing examiner and the District Court applied the burden-shifting test from McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S. Ct. 1817 (1973), which this Court adopted in Martinez v. Yellowstone Co. Welfare Dept., 192 Mont. 42, 626 P.2d 242 (1981). Claims of employment discrimination analyzed under the McDonnell Douglas test are claims involving circumstantial evidence of unlawful discrimination or pretext. Laudert v. Richland Co. Sheriff's Dept., 2000 MT 218, ¶ 20, 301 Mont. 114, ¶ 20, 7 P.3d 386, ¶ 20. ¶30 Ray, without distinguishing which claim he is referring to, argues that the McDonnell Douglas test is inappropriate. However, as noted by the Commission’s hearing examiner, Ray presented no direct evidence of discrimination based on his political beliefs. He claimed that since he spoke out about his political beliefs and Montana Tech didn’t renew his contract as head of the department, the school must have discriminated against him because of his political beliefs. Circumstantial evidence is “that which tends to establish a fact by proving another and which, though true, does not of itself conclusively establish that fact but affords an inference or presumption of its existence.” Section 26-1-102(1), MCA. Ray’s claim before the Commission that he was discriminated against because of his political beliefs is based on circumstantial, or indirect, evidence. Thus, the McDonnell Douglas test was correctly applied to this claim. ¶31 Under the McDonnell Douglas test the plaintiff first has the burden of proving, by the preponderance of the evidence, a prima facie case of discrimination. If the plaintiff succeeds, the burden then shifts to the defendant to provide some legitimate, nondiscriminatory reason for the adverse action against the employee. Finally, if the defendant meets this burden, the plaintiff must have an opportunity to prove, by a preponderance of the evidence, that the reasons for adverse action offered by the defendant were not true, but, rather, were a pretext for discrimination. Taliaferro v. State, 235 Mont. 23, 27-28, 764 P.2d 860, 863 (1988) (citing Tex. Dept. of Community Affairs v. Burdine, 450 U.S. 248, 252-53, 101 S. Ct. 1089, 1093 (1981)). The McDonnell Douglas test is a flexible one and the requirements will not be applied rigidly in every instance. See Martinez, 192 Mont. at 48, 626 P.2d at 246. ¶32 In the present instance, to establish his prima facie case, Ray had the burden of showing: (1) that he espoused political beliefs concerning environmental matters which were known to the university; (2) that he was qualified for his position as head of the Liberal Studies Department; (3) that, despite his qualifications, he was replaced; and (4) that he was replaced by someone who did not share his political beliefs. ¶33 The hearing examiner concluded that Ray established a prima facie case of discrimination based upon his political beliefs and speech. Thus, the burden shifted to Montana Tech to establish legitimate, nondiscriminatory reasons for Ray’s non-renewal as a department head. At this second stage of the McDonnell Douglas test, the defendant’s burden is one of production - not persuasion. Johnson v. Bozeman Sch. Dist. No. 7, 226 Mont. 134, 140, 734 P.2d 209, 212 (1987). That is, defendant does not have to persuade the court that it was motivated by the particular reasons, but, rather, it is sufficient if defendant’s evidence raises a genuine issue of fact as to whether it discriminated against the plaintiff. Burdine, 450 U.S. at 254-55, 101 S. Ct. at 1094. The defendant can raise this issue of fact by clearly and specifically articulating a legitimate reason for rejecting the plaintiff. Crockett v. City of Billings, 234 Mont. 87, 94, 761 P.2d 813, 817 (1988). ¶34 The hearing examiner determined that Montana Tech met this burden of production by providing the following six reasons for not renewing Ray as department head: 1) Ray’s unprofessional attitude and behavior when discussing a new course; 2) Ray’s unwillingness to attend routine administration meetings unless he could bring a lawyer or tape record the meetings; 3) Ray’s unwillingness to investigate allegations of a professor, for whom Ray was responsible, who was alleged to have attended class intoxicated; 4) Ray’s unwillingness to schedule evening classes; 5) Ray’s unwillingness to cooperate with his supervisors about relocating department members and Ray’s threat to oppose this relocation by inciting students and non-campus members to become involved; and 6) Ray’s inability to resolve inter-departmental disputes. ¶35 It then became Ray’s obligation under the McDonnell Douglas test to prove by a preponderance of the evidence that the reasons for adverse action offered by Montana Tech were not true, but, rather, were a pretext for discrimination. After considering the evidence presented, the hearing examiner found, as a matter of fact, the reasons given by Montana Tech for not renewing Ray’s contract as department head were legitimate, nondiscriminatory, and were not a pretext for discrimination. Both the full Human Rights Commission and the District Court upheld the hearing examiner. The District Court held that these findings were supported by substantial evidence and were not caused by misapprehension of the effect of that evidence. ¶36 On appeal, Ray claims the reasons advanced by Montana Tech for the adverse action were not the true reasons for his non-renewal. He urges this Court to disregard the factual findings of the hearing examiner and conclude that the reasons given by Montana Tech were a pretext for discrimination. ¶37 Our review of the record confirms that the reasons given for Ray’s non-renewal as head of the liberal studies department are supported by substantial evidence. Ray’s behavior toward the administration regarding the new course, his unwillingness to cooperate in department realignment, his threat to incite students to oppose such realignment, and his inability to resolve interdepartmental disputes are relevant to his performance as the head of an academic department at Montana Tech. None of these reasons had anything to do with Ray’s political beliefs. Montana Tech did not have to carry the burden of persuading the Commission that these were the reasons Ray was not renewed. All that was necessary was that they were supported by the record and were legitimate and nondiscriminatory reasons for not renewing Ray. Crockett, 234 Mont. at 94, 761 P.2d at 817. Furthermore, the standard is not whether there is evidence to support findings different from those made by the trier of fact, but whether substantial credible evidence supports the findings. Benjamin v. Anderson, 2005 MT 123, ¶ 55, 327 Mont. 173, ¶ 55, 112 P.3d 1039, ¶ 55. ¶38 The hearing examiner also found as a matter of fact that Ray’s environmental views and activism were not discussed at the July 1999 meeting where it was determined that his contract as a department head would not be renewed. The hearing examiner specifically found that Ray’s environmental views were not a cause of his non-renewal. This finding is also based on substantial evidence in the record. ¶39 The District Court did not err in affirming the Commission’s decision to dismiss Ray’s complaint that he was discriminated against because of his political views. B. District Court lawsuit alleging violation of the right to free speech. ¶40 Ray alleged in his amended complaint that the named individual defendants, acting under color of state law, violated his right to freedom of speech as guaranteed by the First Amendment to the United States Constitution and Article II, Section 7, of the Montana Constitution. He therefore claims damages pursuant to 42 U.S.C. § 1983. ¶41 Ray does not argue that his actions outlined in five of the six reasons Montana Tech gave for his non-renewal as department head, noted in ¶ 31 above, are entitled to protection as free speech. His claim on appeal is that his contract as department head was not renewed in retaliation for sending the e-mail of June 30, 1999. In this e-mail he compared proposals to relocate department members to harassment and threatened to mobilize students and others to oppose the relocation proposal at every step. Montana Tech cited this e-mail as one of its six reasons for not renewing Ray’s contract as department head. Thus, Montana Tech has admitted that the adverse action taken against Ray was at least partially motivated by what Ray claims is a violation of his free speech rights. We therefore examine whether Ray’s right to free speech was violated when Montana Tech did not renew his contract based, in part, on this internal e-mail. ¶42 The “threshold question” in assessing a free speech claim by a public employee is whether the employee is speaking out as an employee on a matter of personal interest, or as a citizen on a matter of public interest. Gardetto v. Mason, 100 F.3d 803, 812 (10th Cir. 1996) (citing Connick v. Meyers, 461 U.S. 138, 147, 103 S. Ct. 1684, 1690 (1983)); see also Taliaferro, 235 Mont. at 29, 764 P.2d at 864. Matters of public concern are those which relate to matters of social or political concern in the community. Connick, 461 U.S. at 146, 103 S. Ct. at 1690. ¶43 The First Amendment, however, does not require public universities to subject internal structural arrangements and administrative procedures to public scrutiny or debate. Bunger v. Univ. of Okla. Bd. of Regents, 95 F.3d 987, 992 (10th Cir. 1996). Indeed, to do so would mean nearly every remark could give rise to a constitutional claim. Kurtz v. Vickrey, 855 F.2d 723, 727 (11th Cir. 1988) (citing Connick, 461 U.S. at 149, 103 S. Ct. at 1691). We conclude that Ray’s June 30,1999, e-mail, under the circumstances presented by this case, is not protected speech. Its contents do not amount to matters of public concern. All of the reasons given by Montana Tech for not renewing Ray’s contract as a department head, and specifically the June 30, 1999, e-mail, concern “internal structural arrangements and administrative procedures” at Montana Tech. Bunger, 95 F.3d at 992. Because such issues do not “transcend the internal workings of the university to affect the political or social life of the community” they are not matters of public concern and, thus, not entitled to constitutional protection. Bunger, 95 F.3d at 992. ¶44 The District Court did not err in granting summary judgment to the individual defendants and in dismissing Ray’s civil rights claim brought pursuant to 42 U.S.C. § 1983. ISSUE TWO ¶45 Did Montana Tech discriminate against Ray on the basis of his marital status? ¶46 Ray argues that he suffered employment discrimination based on his marital status in violation of § 49-2-303(1)(a), MCA, which makes it unlawful for Montana Tech to discriminate against a person in employment because of marital status, and also in violation of § 49-3-201(1), MCA, which requires Montana Tech to appoint, assign and promote personnel on the basis of merit without regard to marital status. According to Ray, Abbott opposed his renewal as department head, in part, because Ray was married to a member of the Liberal Studies Department. He further contends that Abbott’s position on this matter influenced both Bradley and Gilmore. ¶47 The hearing examiner again applied the McDonnell Douglas burden-shifting test and determined that Ray had proved a prima facie case of marital status discrimination, thus shifting the burden to Montana Tech. As with Ray’s claim that he was discriminated against because of bis political beliefs, Ray has presented circumstantial evidence that his contract as a department head was not renewed based on his marital status. Thus, the Commission and the District Court correctly applied the McDonnell Douglas test to Ray’s marital status discrimination claim. ¶48 Again, in order to shift the burden of proof back to Ray, Montana Tech bore only the burden of producing legitimate, nondiscriminatory reasons for Ray’s non-renewal - not of persuading the court that these were the actual reasons Ray was not renewed. Johnson, 226 Mont. at 140, 734 P.2d at 212. The hearing examiner again determined that Montana Tech met this burden because the six reasons the school provided in response to Ray’s political beliefs discrimination claim applied with equal force to his marital status discrimination claim. Montana Tech, by advancing the six reasons noted in ¶ 34 as nondiscriminatory reasons for not renewing Ray’s contract as department head, shifted the burden back to Ray to prove that they were pretextural. ¶49 The hearing examiner found that the testimony of Abbott that Ray’s marital status was discussed at the meeting on July 6, 1999, raised a question of pretext, but did not establish it. The hearing examiner ultimately found as a matter of fact that the reasons for not renewing Ray’s contract as department head were not pretextual. The Human Rights Commission and the District Court affirmed the hearing examiner’s findings of fact. The District Court specifically noted that other persons at the meeting testified that Ray’s marital status was not discussed, and that the hearing examiner found their testimony more credible than Abbott’s. ¶50 The Commission and the District Court correctly deferred to the hearing examiner’s determination of witness credibility. It is within the province of the trier of fact to weigh conflicting evidence, and a reviewing court will not substitute its judgment for that of the trier of fact on such matters. Holtz v. Deisz, 2003 MT 132, ¶ 15, 316 Mont. 77, ¶ 15, 68 P.3d 828, ¶ 15. As noted above in ¶ 37, the standard is not whether there is evidence to support a different finding from that made by the trier of fact. Rather, we review the record to determine whether the District Court’s findings were supported by substantial evidence. Benjamin, ¶ 55. All of the hearing examiner’s findings on Ray’s marital status discrimination claim were adequately supported by the record. None of the six reasons provided by Montana Tech for not renewing Ray’s contract as a department head were related to his marital status. Rather, the school took into consideration Ray’s past job performance - a perfectly legitimate consideration in applying the McDonnell Douglas test. Crockett, 234 Mont. at 94, 761 P.2d at 817-18 (citing McDonnell Douglas, 411 U.S. at 806-07, n. 21, 93 S. Ct. at 1826, n. 21. ¶51 The record contains substantial evidence that supports the hearing examiner’s findings that Montana Tech had multiple legitimate, nondiscriminatory reasons for not renewing Ray’s contract as a department head, and that these reasons were not a pretext for marital status discrimination. The District Court did not err in affirming the Montana Human Rights Commission’s determination that Montana Tech did not discriminate against Ray on the basis of marital status. ISSUE THREE ¶52 Did Montana Tech violate Ray’s right to due process? ¶53 Ray argues that he had a property interest in his position as department head and Montana Tech failed to provide him due process when he was not renewed. This property interest arose, according to Ray, because Montana Tech had a de facto system of renewing the contracts of department heads and thus his situation is similar to that found to exist by the United States Supreme Court in Perry v. Sindermann, 408 U.S. 593, 92 S. Ct. 2694 (1972). In Perry, the court held that while a subjective expectancy of tenure in a particular position is not protected by procedural due process, a de facto or common law tenure policy, arising from rules and understandings officially promulgated and fostered by government officials, might justify a legitimate claim to continued employment sufficient to warrant due process protection. Perry, 408 U.S. at 602-03, 92 S. Ct. at 2700. The U.S. Supreme Court concluded that if there are rules or mutually explicit understandings that support a claim of tenure a hearing may be required. Perry, 408 U.S. at 601, 92 S. Ct. at 2699. According to Ray, when Montana Tech failed to give him three-months notice prior to his non-renewal as department head as required by its own policies, his de facto property interest vested and, therefore, the university violated his right to due process by not renewing his contract. However, in Perry there was no contractual or formal written policy which described Perry’s tenure in his position. Perry, 408 U.S. at 599, 92 S. Ct. at 2698. In this case, unlike in Perry, there was a written tenure system in place. Montana Tech had formal tenure regulations which were designed to avoid the de facto tenure problem recognized in Perry. The existence of a formal code governing the granting of tenure precludes a reasonable expectation of continued employment absent extraordinary circumstances. Haimowitz v. Univ. of Nev., 579 F.2d 526, 528 (9th Cir. 1978). Perry does not apply to the facts in Ray’s case. ¶54 In order to have a property interest in an employment position, a person clearly must have more than an abstract need or desire for it. He must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it. Akhtar v. Van De Wetering, 197 Mont. 205, 211, 642 P.2d 149, 153 (1982) (quoting Bd. of Regents v. Roth, 408 U.S. 564, 577, 92 S. Ct. 2701, 2709 (1972)). The source of an entitlement establishing a property interest may be found in state law or in rules or understandings existing between the individual and his employer. Akhtar, 197 Mont. at 211, 642 P.2d at 153 (citing Roth, 408 U.S. at 577, 92 S. Ct. at 2709). In the present case, Montana Tech had a formal, written tenure policy in place at the time it decided not to renew Ray as department head. This policy clearly stated that department heads served at the discretion of the president and may be removed at any time. The policy also provided that faculty serving as department heads “do not have tenured status with respect to those positions....” In light of Montana Tech’s express policy, Ray could not have had a reasonable expectation of his renewal as department head. Nor was such an expectation established by state law as allowed by our holding in Akhtar. 197 Mont. at 211, 642 P.2d at 153. Indeed, Montana Tech made deliberate efforts to advise its employees, including Ray, that they did not have tenured status in department head positions. Because a successful due process claim requires a protected property interest, and Montana Tech’s explicit, published, policies expressly precluded any type of de facto tenure, Ray’s due process claim must fail. ¶55 Ray also contends that the Policy and Procedures Manual of the Mont. Bd. of Regents of Higher Educ., Policy 706.1(5), along with Policy 711.1, created an expectation that his contract as head of the Liberal Studies Department would be renewed. ¶56 Policy 706.1(5) provides in relevant part: In cases of the non-renewal of an administrator’s employment contract, the notice provisions of Board Policy 711.1 shall apply. ¶57 The notice provisions of Policy 711.1 are: Except in situations involving termination for cause or loss of funding ... professional and administrative employees hired through a Montana University System professional employment contract shall be given written notice of intent not to renew their contracts at least 30 days prior to expiration during the first year of employment, three (3) months prior to expiration during the second year of employment, or six (6) months prior to expiration during the third or subsequent years of employment with the institution in a full-time position. ¶58 Thus, according to Ray, because he was an administrative employee for two years, Policy 711.1 required Montana Tech to give him three-months notice that his contract would not be renewed. Since he did not receive such notice, he claims a property interest in the position of department head. ¶59 Ray’s amended complaint alleges that he was the “program manager of Liberal Studies” from August of 1997 through July of 1998. However, the amended complaint makes no allegation that a program manager was an administrative employee as contemplated by Policy 706.1(5). Ray did not file an affidavit in opposition to the Defendants’ motion for summary judgment to the effect that a program manager was an administrative employee. There are no contracts or other exhibits in the record indicating that during the time he was a program manager Ray was an administrative employee. In his briefs on appeal Ray does not refer this Court to anything in the record that raises an issue of material fact whether a program manager is an administrative employee. M. R. App. P 23(a)(4) requires that a party’s argument shall refer to the pages of the record relied on. Furthermore, it is not this Court’s obligation to guess what a party’s precise position is or conduct legal research that may lend support to his position. Pankratz Farms Inc. v. Pankratz, 2004 MT 180, ¶ 82, 322 Mont. 133, ¶ 82, 95 P.3d 671, ¶ 82; In re Estate of Bayers, 1999 MT 154, ¶ 19, 295 Mont. 89, ¶ 19, 983 P.2d 339, ¶ 19. Ray has not established that he was an administrative employee for two years. Ray has acknowledged in his reply brief that the record is inadequate to determine that he did not receive 30-days notice of the non-renewal of his contract as department head. Ray’s argument that he had an expectation of continued employment as a department head based on Montana Tech’s policies is not well taken. ¶60 The District Court did not err in granting summary judgment to Defendants and dismissing Ray’s 42 U.S.C. § 1983 claim based on denial of due process. CONCLUSION ¶61 The orders of the First Judicial District Court, Lewis and Clark County, dismissing Ray’s amended complaint are affirmed. JUSTICES COTTER, LEAPHART, NELSON and RICE concur. Ray’s amended complaint included other claims for relief, but because they are not at issue in this appeal, we do no discuss them.
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JUSTICE MORRIS delivered the Opinion of the Court. ¶1 Respondent Wendell Stanton (Stanton) filed a complaint to compel Wells Fargo Bank, N. A., (Wells Fargo), to distribute the corpus of Frances Scanlan Barker’s (Frances) trust to him. Wells Fargo responded by filing a petition for approval of its final accounting and requested that the District Court determine the beneficiary of Frances’s trust. New Life Fellowship of Montana, d/b/a Trail’s End Ranch (Trail’s End), a previous beneficiary to Frances’s trust, intervened. Trail’s End claimed that Stanton exercised undue influence over Frances and that Wells Fargo breached its fiduciary duty owed to Trail’s End. The District Court for the Thirteenth Judicial District, Yellowstone County, granted summary judgment in favor of Stanton and Wells Fargo on the grounds that Trail’s End failed to show the existence of undue influence, constructive fraud, and that Wells Fargo owed no fiduciary duty to Trail’s End. Trail’s End appeals and we affirm. ¶2 We address the following issues: ¶3 1. Did the District Court properly grant summary judgment in Stanton and Wells Fargo’s favor? ¶4 2. Did Wells Fargo breach its fiduciary duty? ¶5 3. Did Stanton commit fraud in procuring the amendments to Frances’s Trust, Will, and stock transfer? FACTS AND PROCEDURAL HISTORY ¶6 Frances and her husband, Robert Barker (Bob), owned and operated a drug store in Hardin, Montana. Frances and Bob had one daughter, Joanne Barker (Joanne). Joanne married Stanton in 1963. Stanton worked as an accountant and attorney. Frances and Bob had concerns regarding Stanton’s ability to manage bis finances and provide for Joanne. These concerns prompted Frances and Bob to establish separate revocable trusts for the assets that they accumulated over the years. ¶7 On June 16, 1977, Frances executed a Trust Agreement establishing the Frances S. Barker Trust (Trust) and named Norwest Capital Management and Trust Company of Billings as trustee. Wells Fargo later acquired the Trust. The Trust Agreement provided that if Joanne became the beneficiary of the Trust, she could appoint various non-profit charities and blood relatives as beneficiaries, but “specifically excluding her husband.” Trust administrators also stated that Frances worked closely with them and they considered her a “hands on” trustor who enjoyed making investment decisions regarding her Trust. ¶8 Stanton had incurred IRS liens on Joanne’s and his family home that resulted in its foreclosure in 1995. Stanton and Joanne divorced and Frances bought the home for Joanne. Stanton and Joanne continued their relationship despite the divorce. Joanne developed terminal cancer about the same time. On October 18, 1996, Frances met with her attorney, Tom Stusek (Stusek), to change the beneficiary of her Trust because of Joanne’s illness. Stusek suggested various charitable organizations as possible beneficiaries, including Trail’s End. Frances never met with a representative of Trail’s End or had any prior connection to Trail’s End. Stusek drafted France’s Restated Trust Agreement (1996 Trust Agreement) and included Trail’s End as a beneficiary. Joanne died in April, 1997. Before her death, Joanne asked Frances to “take care of Wendell.” ¶9 Stanton and Frances’s relationship warmed following Joanne’s death, and she told Rick Rigler (Rigler), the trust officer at the time, that she felt Stanton had “turned himself around.” Frances lived in an independent living retirement community at this time, and Stanton visited her daily for lunch and took her on errands. Frances asked Stusek in 1999 to draft her Will that created a testamentary trust for Stanton’s benefit in the amount of $200,000. The income from the testamentary trust was to be distributed to Wendell during his lifetime and principle to be distributed to the Barker Family Foundation upon Stanton’s death. ¶10 Stanton continued to spend a considerable amount of time with Frances and drove her to California several times to visit her brothers. After Stanton and Frances returned from one of their trips to California, Frances told Stanton that she had spoken with her two brothers and that they approved of her making Stanton the beneficiary of her Trust. Frances told her Trust administrator in February, 2000, that she was transferring legal work from her current attorney, Stusek, to Stanton and that Stanton would be her accountant. She also left a message on Stusek’s answering machine stating that she no longer required his representation. Shortly after, on April 20, 2000, Frances had Stanton revise her 1996 Trust Agreement to provide that the Trust income should be used for her care and that income and principal distributions should be made to Stanton as he requested. Then, upon her death, the corpus of the Trust would go to Stanton and the Trust would be terminated. The Amendment to Trust Agreement (2000 Trust Agreement) terminated gifts to all previous beneficiaries including Trail’s End. Rigler stated that he believed that Frances had “complete control of her faculties” at this point. ¶11 Frances asked Stanton on June 6, 2000, to draft her amended Will. The amended Will named Stanton as the sole beneficiary. Two months later, Frances directed Wells Fargo to transfer stocks worth approximately $532,500 to Stanton. Frances was 90 years old by this time, but several friends stated that she was in good mental and physical health and described her as strong-willed. Although Frances made dramatic changes both to her Will and to the 1996 Trust Agreement, close friends acknowledged that Frances treated Stanton as her last living relative. Frances’s brothers approved of Frances’s decisions regarding the disposition of her assets. Stanton also saw Frances on a daily basis and she referred to him as her son-in-law. ¶12 Frances asked Bruce Haswell (Haswell), the Trust administrator, in September, 2001, to put her in touch with a new attorney. Frances apparently felt that Stanton was becoming “greedy” and she wanted him out of her Will. An attorney contacted Frances at Haswell’s behest. Frances, once again changing course, told the attorney she did not remember suggesting any changes to her documents. Stusek contacted Wells Fargo in May, 2002, to express his concern that Stanton was exercising undue influence over Frances. Stusek stated that a couple of Frances’s friends had contacted him regarding their concerns that Frances did not return their phone calls. ¶13 Frances signed a power of attorney on September 4, 2002, appointing Stanton as her attorney in fact. Frances broke her hip at the end of the month, and moved into a nursing home after being discharged from, the hospital. Frances’s health deteriorated in the nursing home, and by August, 2003, Dr. Glenda Wickstrom verified in a letter that Frances suffered from advancing Alzheimer’s dementia and was unable to manage her own affairs. Dr. Wickstrom recommended that Stanton be appointed her guardian with power of attorney. ¶14 Frances died in November, 2003, and Stanton requested a final distribution of the Trust. Wells Fargo refused and Stanton filed a complaint against Wells Fargo to compel Wells Fargo to distribute the corpus and the income of the Trust, and to compel a final accounting and termination of the Trust. Wells Fargo filed a petition for a declaratory judgment authorizing and directing the distribution of the Trust assets and for a determination of the validity of Frances’s 2000 Will and the 2000 stock gift to Stanton. The District Court consolidated the cases. ¶15 Trail’s End intervened in the action as a beneficiary under Frances’s 1996 Trust Agreement. Trail’s End alleges that Wells Fargo had breached its fiduciary duty to Trail’s End as a beneficiary. Trail’s End also alleges that Stanton had a fiduciary relationship as Frances’s attorney and exercised undue influence over Frances or committed constructive fraud in procuring the Trust amendment, Frances’s Will, and stock gift. ¶16 The District Court determined that Trail’s End had failed to show the existence of undue influence or constructive fraud and also determined that Wells Fargo owed no fiduciary duty to Trail’s End. The District Court granted summary judgment in favor of Stanton and Wells Fargo and directed Wells Fargo to distribute the remaining assets of the Trust to Stanton. This appeal followed. STANDARD OF REVIEW ¶17 We review de novo a district court’s grant of summary judgment using the standard established by M. R. Civ. P. 56. The moving party must establish the absence of a genuine issue of material fact and entitlement to judgment as a matter of law. Gliko v. Permann, 2006 MT 30, ¶ 12, 331 Mont. 112, ¶ 12, 130 P.3d 155, ¶ 12. Once a moving party has met its burden, the opposing party must present substantial evidence essential to one or more elements of its case in order to raise a genuine issue of material fact. Gliko, ¶ 12. We review a district court’s conclusions of law to determine whether they are correct. Gliko, ¶ 13. ISSUE ONE ¶18 Did the District Court properly grant summary judgment in Wells Fargo and Stanton’s favor? ¶19 Trail’s End asserts that genuine issues of material fact exist as to the relationship between Stanton and Frances and whether Frances was competent at the time that she amended her 1996 Trust Agreement and Will. Trail’s End argues the fact that Stanton had drafted Frances’s 2000 Trust Agreement and Will shifts the burden to Stanton to prove that no undue influence took place. Stanton concedes that he had a confidential relationship with Frances, but he asserts that no evidence exists to show he abused this relationship. He contends that the District Court correctly found that Trail’s End had the burden to prove undue influence and that Trail’s End had failed to present any evidence to raise a genuine issue of material fact on the issue. We agree. ¶20 This Court has recognized that the imposition of undue influence may negate the free consent necessary for the valid creation and enforcement of an express trust. Matter of Estate of Eggebrecht, 1998 MT 249, ¶ 10, 291 Mont. 174, ¶ 10, 967 P.2d 388, ¶ 10. Section 28-2-407, MCA, defines undue influence as: (1) the use by one in whom a confidence is reposed by another or who holds a real or apparent authority over him of such confidence or authority for the purpose of obtaining an unfair advantage over him; (2) taking an unfair advantage of another’s weakness of mind; or (3) taking a grossly oppressive and unfair advantage of another’s necessities or distress. ¶21 To determine whether there has been undue influence, a court may consider: (1) any confidential relationship between the person alleged to be exercising undue influence and the donor; (2) the physical condition of the donor as it may affect his or her ability to withstand influence; (3) the mental condition of the donor as it may affect his or her ability to withstand influence; (4) the unnaturalness of the disposition as it relates to showing an unbalanced mind or a mind easily susceptible to influence; and (5) the demands and importunities as they may affect the donor, taking into account the time, place, and surrounding circumstances. In re Estate of Bradshaw, 2001 MT 92, ¶ 13, 305 Mont. 178, ¶ 13, 24 P.3d 211, ¶ 13 (citation omitted). The five criteria may, hut need not, be present in any given undue influence case. The statutory requirements still control. The five criteria simply represent nonexclusive considerations available to guide the trial court in its application of the statutory requirements. Bradshaw, ¶ 16. Confidential Relationship ¶22 Stanton concedes the existence of a confidential relationship with Frances. Stanton married Frances’s only daughter, Joanne, in 1963. Although Stanton may have disappointed Frances at times during his 32 year marriage to Joanne, he remained close to Frances after Joanne’s death and their relationship improved. Stanton continued spending time with Frances and visited her daily. He drove Frances around town when she needed as she had no close relatives living in Montana. Stanton also drove Frances to California several times to visit her brothers. ¶23 Stanton drafted the revisions to Frances’s 1996 Trust Agreement in April, 2000, at her request and later, in June, Stanton drafted a new Will for Frances. Stanton was the named beneficiary to both. Trail’s End contends that we should presume undue influence because Stanton drafted these documents for Frances and thus the burden should have been shifted to Stanton. ¶24 The contestants of a will have the burden of establishing undue influence. Section 72-3-310, MCA. Undue influence may never be presumed and must be proven like any other fact. Matter of Estate of Lien, 270 Mont. 295, 304, 892 P.2d 530, 535 (1995), overruled in part on other grounds, Bradshaw, ¶ 16. As noted by the District Court, Stanton’s role in acting as Frances’s attorney in preparing the 2000 Trust Agreement, the Will, and stock gift could constitute a violation of Rule 1.8(c) of the Montana Rules of Professional Conduct. We have previously stated, however, that a violation of a professional conduct rule “should not give rise to a cause of action nor should it create any presumption that a legal duty has been breached.” Schuff v. A.T. Klemens & Son, 2000 MT 357, ¶ 34, 303 Mont. 274, ¶ 34, 16 P.3d 1002, ¶ 34. The District Court correctly determined, therefore, that Trail’s End had the burden of proving undue influence. ¶25 Stanton’s role in drafting Frances’s 2000 Trust Agreement and Will establishes the existence of a confidential relationship. The mere opportunity to exercise undue influence on the testator is not sufficient, however, to prove undue influence. We must consider and correlate the opportunity to exercise undue influence with the alleged acts of influence to determine if the acts amount to undue influence. Lien, 270 Mont. at 304, 892 P.2d at 535. The existence of a confidential relationship, without more, is insufficient to prove Stanton exercised undue influence over Frances. Physical and Mental Condition ¶26 Trail’s End argues that Frances suffered from the affects of Alzheimer’s disease at the time that she executed the amendments to her 1996 Trust Agreement and Will in 2000. Trail’s End contends that this diminished mental state left her susceptible to undue influence. Testimony from people who knew Frances, however, reveal that Frances remained physically active and independent during the time in question. Frances lived independently, first in a condominium, and then in an independent living retirement community. Frances was admitted to the hospital briefly for heart trouble in 1999, but her medical records indicate that she was alert, oriented, and looked much younger than her 90 years. The medical records also indicate that Frances had not required any medical attention during the previous 30 years. She had no other physical ailments until she suffered a broken hip in 2002. ¶27 Friends also described Frances as mentally sharp and strong-willed even into her 90’s. Stusek described her as a “pragmatic kind of woman of steely determination,” and stated that he had no concerns about Frances’s mental capacity when he amended her Trust in 1999. Rigler also stated that Frances was “in complete control of her faculties” when he met with her to review her 2000 Trust Agreement. In fact, Trail’s End “admits that the medical records and apparent actions by Mrs. Barker seem to indicate that she was in control of her decisions.” Dr. Wickstrom did not diagnose Frances with Alzheimer’s until late 2003. Trail’s End failed to provide evidence that establishes that Frances suffered any decline in her mental condition leaving her susceptible to undue influence at the time she executed the documents in 2000. ¶28 Trail’s End offered the deposition testimony of Dr. Roger Williams (Dr. Williams) in an attempt to establish that Frances suffered from the effects of Alzheimer’s disease at the time she made changes to her 1996 Trust Agreement and Will. Wells Fargo moved to exclude Dr. Williams’s testimony on the grounds that his opinion was speculative because he never met or examined Frances. The District Court considered Dr. Williams's deposition testimony and correctly concluded that his testimony presented only speculation as to Frances’s mental condition in 2000. Ike v. Jefferson Nat. Life Ins. Co., 267 Mont. 396, 402, 884 P.2d 471, 475 (1994). In Ike, this Court determined that a doctor’s testimony failed to present an issue of material fact on the basis that the doctor never met or examined the patient and only could speculate as to the cause of death. Ike, 267 Mont. at 402, 884 P.2d at 475. ¶29 Similarly, Dr. Williams never met or examined Frances and she never had undergone a neuropsychological evaluation for him to review. Dr. Williams opined that Frances probably suffered some intellectual decline, but he could not state a level of impairment with a reasonable degree of medical certainty. Dr. Williams’s testimony represents his speculation as to Frances’s mental condition based on literature regarding the rate of intellectual decline of Alzheimer’s patients. Speculative statements, however, are insufficient to raise genuine issues of material fact. Ike, 267 Mont. at 402, 884 P.2d at 475. Instead, the testimony from the individuals who knew Frances revealed that she was healthy, self-sufficient, aware, and actively involved in her investments. Unnaturalness of a Disposition ¶30 The District Court concluded that the disposition to Stanton was a more natural distribution than a distribution to charities to which Frances had little or no connection during her lifetime. Frances’s close friends testified that Frances still referred to Stanton as her “son-in-law” even after his divorce and that Frances promised Joanne that she would “take care” of Stanton. Frances’s brother, Joseph Scanlan, also knew of, and supported, Frances’s intention to leave her estate to Stanton. ¶31 Trail’s End admits it never met with Frances or had any other connection with her. Stusek also stated that, when he drafted the 1996 Trust Agreement, he suggested a fist of tax-exempt organizations, including Trail’s End, from which Frances could choose. The District Court correctly concluded that the disposition was natural and that this factor raised no questions of fact regarding the presence of undue influence. Demands and Importunities ¶32 Finally, the District Court found that Trail’s End failed to present any evidence that Stanton made any requests or demands on Frances to amend her Will or Trust or to provide any monetary gifts to him. Although the amendments to Frances’s testamentary documents significantly depart from her 1996 Trust Agreement, all the evidence presented demonstrates that designating Stanton as her beneficiary was not the result of undue influence by Stanton. Frances’s friends, brother, and her trustees attest that she wanted Stanton to be the sole beneficiary of her Trust and estate. ¶33 Frances and Stanton admittedly had a confidential relationship. Trail’s End demonstrated, at most, however, that Stanton had the opportunity to exercise undue influence. The opportunity to exercise undue influence on the testator is not sufficient to prove undue influence and invalidate a will or trust. In re Estate of Harms, 2006 MT 320, ¶ 36, 335 Mont. 66, ¶ 36, 149 P.3d 557, ¶ 36. The substantial evidence in the record reveals that Frances was in good physical and mental health for a woman of her age and that she was in full command of all her faculties and was not easily subjected to the influence of others in 2000, when she revised her Will and Trust documents. The District Court properly granted Wells Fargo and Stanton’s motions for summary judgment. ISSUE TWO ¶34 Did Stanton commit fraud in procuring the amendments to Frances’s Trust, Will, and stock transfer? ¶35 Trail’s End argued in the District Court that Stanton had committed constructive fraud to induce Frances to making the changes to her Will and the 1996 Trust Agreement and to gift him stock. Trail’s End argues on appeal, however, that Stanton committed actual fraud. The general rule in Montana is that we will not address either an issue raised for the first time on appeal or a party’s change in legal theory. Valley Bank of Ronan v. Hughes, 2006 MT 285, ¶ 31, 334 Mont. 335, ¶ 31, 147 P.3d 185, ¶ 31 (citation omitted). We decline to address this issue. ISSUE THREE ¶36 Did Wells Fargo breach its fiduciary duty to Trail’s End? ¶37 Trail’s End argues that Wells Fargo breached its fiduciary duty to Trail’s End on the grounds that Frances lacked the capacity to amend her 1996 Trust Agreement and remove Trail’s End as a beneficiary. Trail’s End also argues that Wells Fargo breached its fiduciary duty to Trail’s End by permitting Frances to gift $532,500 worth of stock to Stanton in 2000. ¶38 Section 72-33-701, MCA, provides that the trustee of a revocable trust owes a fiduciary duty only to the person holding the power to revoke. Section 72-33-701, MCA, provides limitations on the rights of beneficiaries of revocable trusts. This subsection confirms that the trustee owes duties “to the person holding the power to revoke” during the time that the person holding the power to revoke is competent. Section 72-33-701(2), MCA. The subsection further provides that the person holding the power to revoke, “and not the beneficiary, has the rights afforded beneficiaries under chapters 33 through 36.” Section 72-33-701(1), MCA. Frances held the power to revoke during the time in question. We previously have concluded that Frances was competent during those periods. Supra ¶ 32. Therefore, Wells Fargo owed a fiduciary duty only to Frances regarding her Trust, and not to Trail’s End. ¶39 Trail’s End also failed to provide any evidence that Frances was not competent to amend her Trust Agreement. Testamentary capacity requires three elements of which the testator must be aware: (1) the nature of the acts to be performed; (2) the nature and extent of the property to be disposed; and (3) the objects of his or her bounty. In re Estate of Harms, ¶ 14. Testamentary capacity is determined as the date the will was executed and the contestants have the burden of establishing lack of capacity. Section 72-3-310, MCA. Trail’s End fails to provide any evidence, other than the speculative testimony of Dr. Williams, to support its claim that Frances lacked capacity to make the changes to her Trust Agreement or make her stock gift to Stanton. The District Court correctly concluded that Wells Fargo did not owe Trail’s End a fiduciary duty. ¶40 Affirmed. CHIEF JUSTICE GRAY, JUSTICE NELSON, COTTER and LEAPHART concur.
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On October 21,2005, the defendant was sentenced to eight (8) years in the Montana State Prison, for violation of the conditions of a suspended sentence for the offense of Sexual Intercourse Without Consent, a felony. The term shall run concurrently with the term in Cause No. DC-98-008.01. On March 7, 2006, 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 Jerry Cook, who appeared by videoconference. The state was not represented. DATED this 17th day of March, 2006. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed hy the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive. ”(§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 7 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin
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On February 16, 2006, the defendant was sentenced to a commitment to the Department of Corrections for a term of four (4) years for violation of the conditions of a suspended sentence for the offense of DUI, 4th or Subsequent Offense, a felony. On November 2, 2006, 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 Ed Sheehy. 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 increase it. 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. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive given the nature of the crime and the original sentence. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be modified to run concurrently with the Missoula County Cause Number DC-05-182. The terms and conditions shall remain as imposed in the Judgment of February 16, 2006. Done in open Court this 2nd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On July 6, 2006, the defendant was sentenced to ten (10) years in the Montana State Prison, with three (3) years suspended, to run consecutive to the sentence imposed in DC-91-104 and Cascade County Cause No. BDC-96-489, for violation of the conditions of a suspended sentence for the offense of Negligent Vehicular Assault, a felony. On November 3, 2006, 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 Benjamin Anciaux. The state was not represented. The Defendant having been duly informed of the amended judgment and commitment, and having waived his right to appear before the undersigned for this pronouncement of sentence, whereupon, IT IS ORDERED, ADJUDGED AND DECREED that the sentence shall be modified to run concurrently to Lake County Cause No. DC-91-104. Otherwise, the term of the sentence and the conditions shall remain as imposed in the July 6, 2006 Judgment. Hon. Ted L. Mizner, District Court Judge.
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On April 29, 2005, the defendant was sentenced to a commitment to the Department of Corrections for a term of five (5) years, for violation of the conditions of a suspended sentence, for the offense of Count I: Sexual Intercourse Without Consent, a felony. On March 6, 2006, 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 Brandon Hartford. 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 increase it. 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. Therefore, it is the unanimous decision of the Sentence Review Division that the Application for Review of Sentence is dismissed. Done in open Court this 6 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On June 16, 2006, the defendant was sentenced to five (5) years in the Montana State Prison, for violation of the conditions of a suspended sentence for the offense of Driving Under the Influence of Alcohol/Drugs, 4th or Subsequent Offense, a felony. On November 3, 2006, the defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court. The defendant was present and was represented by Matthew McKittrick. The state was represented by Joel Thompson. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. DATED this 19th day of November, 2006. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 3rd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On January 10, 2006, the defendant was sentenced to five (5) years in the Montana State Prison for the offense of Count I: Criminal Possession of Dangerous Drugs, a felony. On May 4, 2006, 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 Brandon Hartford. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 4 th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On March 15, 2005, the defendant was sentenced to the following: Count II: Ten (10) years in the Montana State Prison, for the offense of Theft, a felony; Count IV: A commitment to the Cascade County Detention Center for a term of six (6) months, for the offense of Criminal Possession of Dangerous Drugs, a misdemeanor; and Count V: A commitment to the Cascade County Detention Center for a term of six (6) months, for the offense of Criminal Possession of Drug Paraphernalia, a misdemeanor. Said sentences shall run concurrently with each other. The Court found the Defendant not to be eligible for parole. On August 10, 2006, the defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court. DATED this 21st day of August, 2006. The defendant was present and was represented by Michael Tramelli. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 10th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Douglas Harkin.
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On May 23, 2006, the defendant was sentenced to five (5) years in the Montana State Prison for violation of the conditions of a deferred sentence for the offense of Criminal Possession of Dangerous Drugs (Meth), a felony. On November 2, 2006, 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 Paulette Ferguson. The state was not represented. The Defendant having been duly informed of the amended judgment and commitment, and having waived his right to appear before the undersigned for this pronouncement of sentence, whereupon, IT IS ORDERED, ADJUDGED AND DECREED that the sentence shall be modified to a commitment to the Department of Corrections for a term of five (5) years, with two (2) years suspended. The terms and conditions shall remain as originally imposed. The Defendant shall receive credit for time served. Hon. Ted L. Mizner, District Court Judge.
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JUSTICE COTTER delivered the Opinion of the Court. ¶1 In April 2003, plaintiff Frontline Processing Corporation (Frontline), a credit card processing company, brought this action in the United States District Court for the District of Montana for breach of contract and violation of Montana’s Unfair Trade Practices Act. Defendant American Economy Insurance Company (American Economy) moved for partial summary judgment based in part on its argument that the definition of the term “direct loss” in the insurance contract at issue precluded Frontline from recovering many of the damages that it claims are covered and payable under the policy. The District Court denied summary judgment in July 2005, on the basis that there was no clear Montana precedent. ¶2 By order dated September 27, 2005, and pursuant to M. R. App. P. 44, the United States District Court for the District of Montana, Great Falls Division, certified the following question to this Court: Does the term “direct loss” when used in the context of employee dishonesty coverage afforded under a businessowner’s liability policy, include consequential damages that were proximately caused by the alleged dishonesty, or is the construction of the term “direct loss” limited to those damages that directly result from the alleged employee dishonesty? ¶3 We accepted the question in our order dated October 12, 2005, and for the reasons set forth below, we conclude that the term “direct loss” when used in the context of employee dishonesty coverage afforded under a business owner’s liability policy, means all losses proximately caused by an employee’s dishonesty. BACKGROUND ¶4 In accordance with M. R. App. P. 44, the United States District Court certified the facts set forth below in paragraphs 5-17. ¶5 Frontline is a credit card processing company based in Bozeman, Montana. Chris Kittler is the owner and president of Frontline. ¶6 Ron Reavis was employed as Frontline’s Chief Financial Officer until February 2001. ¶7 Frontline purchased a special Businessowner’s Policy (Policy) from American Economy in August 1999. At that time, Frontline also purchased $250,000.00 in optional coverage for employee dishonesty. ¶8 During his employment at Frontline, Reavis was allegedly responsible for filing Frontline’s payroll taxes, corporate income taxes, and Kittler’s personal income taxes. ¶9 Frontline claims that while employed at Frontline, Reavis engaged in dishonest acts such as forging Kittler’s signature on Frontline checks, using the company credit card for his own purposes, and deliberately failing to file Frontline’s payroll taxes and corporate income taxes. ¶10 As a result of the alleged dishonest acts of Reavis, Frontline retained Heartland Business Intelligence (Heartland) to conduct a forensic examination of Reavis’s computer activities to determine the degree and extent of Reavis’s alleged theft. Frontline claims Heartland’s fees in the amount of $24,050.20 are covered under the Policy. ¶11 Frontline similarly retained Karen S. Runyon (Runyon) to perform a forensic handwriting analysis of certain Frontline checks to determine which ones, if any, Reavis forged. Frontline claims that the $3,812.50 fee for Runyon’s analysis is also covered under the Policy. ¶12 Frontline also retained Galusha, Higgins & Galusha (Galusha) to investigate, evaluate, and rectify the financial situation that Reavis allegedly had caused. It claims that Galusha’s fees in the amount of $57,654.81 are covered by the Policy. ¶13 Frontline also seeks coverage costs, interest, penalties, and fees assessed by the Internal Revenue Service (IRS) as a result of Reavis’s alleged deliberate failure to pay Frontline’s and Kittler’s taxes. ¶14 The “employee dishonesty” coverage afforded by the Policy provides as follows: A. Employee Dishonesty i. We [American Economy] will pay for direct loss of or damage to Business Personal Property and “money” and “securities” resulting from dishonest acts committed by any of your employees acting alone or in collusion with other persons (except you or your partner) with the manifest intent to: 1. Cause you to sustain loss or damages; and also 2. Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: a. Any employee; or b. Any other person or organization. (Emphasis added by the U. S. District Court.) ¶15 American Economy maintains that the costs, fees, interest and penalties assessed by the IRS, as well as the fees paid to Heartland, Runyon, and Galusha, are not “direct losses” within the meaning of the phrase, and are therefore not covered losses under the Policy. ¶16 Frontline maintains that the Policy does afford coverage for costs, fees, interest and penalties assessed by the IRS, as well as fees paid to Heartland, Runyon, and Galusha because Frontline alleges these losses were proximately caused by Reavis’s dishonest conduct. ¶17 For purposes of this certified question only, American Economy concedes that Reavis had “manifest intent” as defined in the Policy. ¶18 Based on these facts, the federal court certified the question to this Court. Under M. R. App. P. 44(c), this Court may answer a question of law certified to it by another qualifying court. Therefore, our review is purely an interpretation of the law as applied to the agreed facts underlying the question. Rich v. State Farm Mut. Auto. Ins. Co., 2003 MT 51, ¶ 11, 314 Mont. 338, ¶ 11, 66 P.3d 274, ¶ 11. DISCUSSION ¶19 Frontline argues, among other things, that several jurisdictions have interpreted “direct loss” to mean all losses proximately caused by an employee’s dishonest activity. See, e.g., Jefferson Bank v. Progressive Cas. Ins. Co., 965 F.2d 1274, 1281 (3rd Cir. 1992); Auto Lenders v. Gentilini Ford., 854 A.2d 378, 386-87 (N.J. 2004); Mid-America Bank of Chaska v. American Cas. Co., 745 F. Supp 1480, 1485 (D. Minn. 1990). It maintains that the disputed claimed expenses were losses proximately caused by Reavis’s actions. Frontline further avers that incurrence of the disputed claimed expenses was mandated by the policy’s investigation and mitigation of damages provisions. ¶20 American Economy counters that the losses Frontline is claiming are consequential, not direct losses, and therefore are not covered by the policy. It relies on cases from jurisdictions that have expressly declined to apply a proximate cause analysis to the term “direct loss,” holding instead that a narrower standard was appropriate. See, e.g., Tri City Nat. Bank v. Federal Ins. Co., 674 N.W.2d 617, 625 (Wis. App. 2003); RBC Mortg. Co. v. National Union Fire Ins. Co., 812 N.E.2d 728, 733 (Ill. App. 1st Dist. 2004). American Economy further maintains that the disputed claims represent monies that Frontline owes to third parties, thus making them third party liabilities and not direct losses. Relying on Vons Companies, Inc. v. Federal Ins. Co., 212 F.3d 489 (9th Cir. 2000), and numerous other cases from the First, Fifth, Sixth and Seventh Circuits, American Economy urges us to adopt the Ninth Circuit’s rule that “direct means direct” and that in the absence of a third party claim clause, a policy covering “direct losses” does not provide indemnity for vicarious liability for tortious acts of a dishonest employee. Additionally, the insurer argues that the policy did not require Frontline to incur the expenses it is claiming. ¶21 As noted above, the policy before us insures Frontline against direct losses caused by the dishonesty of its employees. Many jurisdictions have construed “direct loss” or similar language in a fidelity bond or insurance policy. A fidelity policy, also known as an employee dishonesty policy, is a form of insurance in which the insurer agrees “to indemnify an employer against a loss arising from the lack of integrity or honesty of an employee ....” Black’s Law Dictionary 804 (Bryan A. Garner, ed., 7th ed., West 1999). Under a liability policy, by contrast, the policy holder is insured against or indemnified for, vicarious liability to a third party claimant. RBC, 812 N.E.2d at 733. The policy before us is clearly the former-i.e., it is an employee dishonesty, or fidelity, policy. See ¶ 7. ¶22 The claims asserted by Frontline are for business expenses and losses it incurred as a result of its employee’s dishonesty. While American Economy equates the claims for which Frontline seeks recovery-those of the analysts, the accountants and the IRS-with the classic third party claims for which there would typically be no coverage under a fidelity policy, Frontline maintains that these are losses proximately caused by the employee’s dishonest conduct which the policy was intended to cover. We turn to the cases cited by the parties for guidance in answering this question. ¶23 In Vons, upon which American Economy relies, Vons was insured for employee dishonesty by Federal Insurance Company. The policy coverage was limited to Vons’ direct losses incurred as a result of employee misconduct. An employee of Vons engaged in a dishonest act which resulted in Vons being sued by defrauded third parties. Vons settled these third party claims, and then submitted a proof of loss to recover the amount it paid in the settlement. Vons argued the loss from the settlement of the liability suit was a “direct loss” incurred due to the actions of the employee. Vons, 212 F.3d at 490-91. The Ninth Circuit rejected this argument, finding that coverage did not extend to Vons’ liability settlement of third party claims for losses arising out of the tortious conduct of its employees. Vons, 212 F.3d at 492. The federal court continued that “direct means direct” and the third party claims were not direct. Vons, 212 F.3d at 492. ¶24 Similarly, in Tri City Nat. Bank, employees of a branch of the Tri City Bank participated in a scheme to obtain fraudulent mortgage loans for insufficiently funded borrowers. Ultimately, these borrowers defaulted on the fraudulently-obtained loans, the scheme was discovered, and the mortgage companies sued Tri City to recover their losses. Tri City sought confirmation from Federal Insurance Company (Federal) that the fidelity bond in place covered Tri City for either judgments or settlements paid to the mortgage companies resulting from the fraud. Federal denied coverage on the ground that the bond covered only those losses “resulting directly from dishonest or fraudulent acts” of Tri City employees. Tri City settled the claims brought by the mortgage companies and then sought indemnity from Federal for the settlement amounts. Federal again denied coverage. Tri City, 674 N.W.2d at 617-20. ¶25 The Wisconsin Court of Appeals noted that Tri City’s claimed losses arose from settlements with third parties and were not the direct result of its employees’ dishonesty; in fact Tri City’s liability to the mortgage companies did not come into being until nearly three years after the fraudulent conduct occurred. Tri City, 674 N.W.2d at 623. See also Aetna Cas. & Sur. Co. v. Kidder, Peabody, 676 N.Y.S.2d 559, 246 A.D.2d 202 (N.Y. A.D. 1 Dept. 1998) (If an employee’s dishonesty causes losses to a third party, which then leads to litigation concluding in a judgment or settlement, the insured has not incurred a “direct loss” under a fidelity bond; the insured’s loss is “indirect.”); RBC; and Finkle v. St. Paul Fire and Marine Ins. Co., 2002 WL 1359672 (D. Conn.) (not reported in F. Supp.2d). ¶26 Here, unlike in the cases above, Frontline’s disputed claims are not the result of lawsuits by or settlements made to third parties. Rather, as argued by Frontline, they arise from costs incurred to investigate the extent of Reavis’s alleged dishonest conduct and to mitigate and remedy the discovered damage. In making this argument, Frontline relies in part upon three cases from the Third Circuit Court of Appeals-Jefferson Bank v. Progressive Casualty Ins. Co., 965 F.2d 1274 (1992); Resolution Trust Corp. v. Fidelity & Deposit Co., 205 F.3d 615 (2000), and Scirex Corp. v. Federal Ins. Co., 313 F.3d 841 (2002). In these cases, the courts employ a “proximate cause” standard in determining whether the claim presented by the insured is or is not the type of “direct loss” covered by the policy. ¶27 In Jefferson Bank, plaintiff Jefferson Bank sought indemnification for direct losses resulting from a loan created with the aid of an imposter notary, who affixed her invalid notarization to the mortgage, and then failed to record it. The customer subsequently placed other mortgages on the same property, at least one of which was recorded, and when the customer defaulted on all loans, Jefferson Bank was unable to take possession of the property. Jefferson Bank, 965 F.2d at 1275-76. Progressive, the defendant insurer, argued that the Bank’s loss was not covered under the bond’s coverage for losses “resulting directly from” fraudulent signatures, because the loss was not caused by the notary’s forged signature, but rather by the fact that the building was so heavily encumbered. Jefferson Bank, 965 F.2d at 1280-81. The Third Circuit held that under Pennsylvania law, the “direct cause of a loss” does not have to be the “sole” or “immediate” cause, but need only be a proximate or substantial cause. The Federal Court opined that: “[D]irect cause” or “immediate cause” is a nebulous and largely indeterminate concept, and one that does not enjoy favor under Pennsylvania law. As we have suggested, Pennsylvania, consistent with general notions of proximate causation, requires that plaintiffs in negligence cases show substantiality, rather than immediacy, in order to demonstrate proximate cause. Jefferson Bank, 965 F.2d at 1281. ¶28 Also, in Scirex, the Third Circuit applied the proximate cause standard, relying on Jefferson, stating, “Pennsylvania law equates ‘direct cause’ with ‘proximate cause.’” Scirex, 313 F.3d at 843-44. In Scirex, nurse employees for the insured, Scirex (a pharmaceutical-testing company), failed to follow protocol and engaged in deceptive record keeping, both of which rendered certain drug studies worthless. As a result, Scirex was unable to procure and produce results for its contracted sponsor, and Scirex was forced to replicate the studies using $1.2 million of its own funds. Scirex sought indemnity for the replication costs from its insurer, Federal, under a blanket employee dishonesty policy. Federal denied the claim, prompting Scirex to sue Federal for the losses. The federal district court held that “Scirex’s losses were directly tied to these studies, and by rendering those studies worthless, the nurses’ behavior proximately, and therefore directly, caused Scirex’s losses.” Scirex, 313 F.3d at 843-45, 850. ¶29 In 2004, the New Jersey Supreme Court was asked to consider whether the use of a proximate cause test for evaluating the nature of a loss was appropriate under an employee dishonesty policy that requires a direct loss. Auto Lenders, 854 A.2d 378. The New Jersey Court noted that “the majority of federal courts that have addressed this question have concluded that the term ‘direct loss’ or its equivalent does, in fact, call for the application of a proximate-causation standard.” Auto Lenders, 854 A.2d 386. Citing Scirex (applying proximate cause test to “direct loss”), F.D.I.C. v. National Union Fire Ins. Co., 205 F.3d 66, 76 (2d Cir. 2000) (applying proximate cause test to policy language covering “loss resulting directly from” employee dishonesty), Resolution Trust Corp., Jefferson Bank, and First Nat. Bank of Louisville v. Lustig, 961 F.2d 1162, 1167-68 (5th Cir. 1992), the New Jersey Court adopted “the conventional proximate cause test as the correct standard to apply when determining whether a loss resulted from the dishonest acts of an employee.” It stated, “[o]ur interpretation comports with our general principles of insurance law, including our practice of interpreting coverage provisions broadly. . . . There being no sound reason why a proximate-cause analysis should not be employed when determining whether a loss is direct under a fidelity insurance policy, we will apply that approach to such policies, including the policy at issue in this appeal.” Auto Lenders, 854 A.2d at 387. ¶30 We are persuaded that a proximate cause analysis is appropriate in determining whether a loss is “direct” under a fidelity insurance policy. Such a position comports, as well, with our tradition of applying a causation standard to various types of losses claimed under insurance policies. See, e.g., Green v. Milwaukee Mechanics’ Ins. Co., 77 Mont. 505, 252 P. 310 (1926) (Insurer of a fire insurance policy containing an “explosion” exemption, is liable for both the fire and explosion damage where the explosion is caused by a pre-existing fire “since the fire is the proximate cause of the whole loss and the explosion is a mere incident.”); Newman v. Kamp, 140 Mont. 487, 493-94, 374 P.2d 100, 104 (1962) (For claimant to prevail in industrial accident claim, he must establish by a preponderance of evidence that such injury was the proximate cause of his present condition.); Life Ins. Co. of North America v. Evans, 195 Mont. 242, 247, 637 P.2d 806, 808 (1981) (In a negligence action, where an accidental injury aggravates or triggers a pre-existing dormant disease or physical infirmity, the accident may be said to have been the proximate cause of the resulting disability within the terms and meaning of an ordinary accident insurance policy.). ¶31 For the foregoing reasons, we answer the certified question by concluding that the term “direct loss” when used in the context of employee dishonesty coverage afforded under a business owner’s liability policy, applies to consequential damages incurred by the insured that were proximately caused by the alleged dishonesty. We do not address or resolve the question of whether all of the claims presented by Frontline for payment under the policy were proximately caused by the dishonest actions of Reavis, as this is beyond the scope of the certified question. ¶32 Question answered. JUSTICES NELSON, MORRIS, WARNER and RICE concur. For purposes of this certified question only, American Economy admits these losses were occasioned by Reavis’s alleged dishonesty.
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On July 25, 2003, the defendant was sentenced to the following: Count I: Ten (10) years in the Montana Women’s Prison, for the offense of Assault on a Peace Officer, a felony; Count II: Ten (10) years in the Montana Women’s Prison, to run concurrently with Count I, for the offense of Attempted Assault on a Peace Officer, a felony; Count III: One (1) year in the county jail, to run concurrently with Count I, for the Offense of Assault with Bodily Fluid, a misdemeanor; and Count VI: Six (6) months in the county jail, to run concurrently with Counts I and II, for the offense of Obstructing a Peace Officer, a misdemeanor. For a Persistent Felony Offender status, the court sentenced the defendant to seven (7) years at the Montana Women’s Prison, to run consecutively with Counts I, II, III and VI. On April 7, 2006, 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 Cynthia Thornton. The state was represented by Garry Bunke. 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 increase it. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. DATED this 14th day of April, 2006. Done in open Court this 7th day of April, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On June 9, 2005, the defendant was sentenced to a commitment to the Department of Corrections for a term of two (2) years, for violation of the conditions of a deferred sentence, for the offense of Violation of Protective Order, a felony. On March 6, 2006, 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 advised of his right to be represented by counsel. 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 increase it. 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 continue his hearing to pursue any and all appeal avenues prior to his sentence review hearing. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be continued pending notification to the Sentence Review Division within sixty (60) days of the decision of a final appeal. Done in open Court this 6 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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JUSTICE NELSON delivered the Opinion of the Court. ¶1 The Sixth Judicial District Court, Park County, determined that the last Will and Testament (2001 Will) of Charles J. Harms (Charlie) would be probated and that Charlie’s son Dennis Harms (Dennis), as personal representative of Charlie’s estate, would be awarded attorney fees and costs. Charlie’s other children-Charles R. “Bo” Harms, Diann Stephens, Steven “Steve” Harms, and Thomas “Tom” Harms (hereinafter Contestants)-appeal. We affirm. ¶2 The Contestants raise the following issues on appeal: ¶3 1. Did the District Court err when it determined Charlie was competent to execute the 2001 Will? ¶4 2. Did the District Court err when it determined Charlie was not acting under undue influence in executing the 2001 Will? FACTUAL AND PROCEDURAL BACKGROUND ¶5 Charlie owned the Harms Livestock Ranch located northwest of Livingston, Montana. Charlie and his wife, Bernice, were married in 1939. Together they had five children (listed above). Their oldest son, Bo, lived and worked on the ranch for over 30 years, leaving in the fall of 1991. Dennis spent his entire adult life working with his father on the ranch and was working on the ranch when Charlie died. Steve moved to Arizona, having never worked on the ranch during his adult life. While Tom lived on the ranch, he did not work on the ranch full-time during his adult life. While not living directly on the ranch, Diann took on different responsibilities with the ranch throughout her life, such as serving as secretary/treasurer of the ranch corporation. ¶6 Testimony from trial indicated that Charlie and Bernice planned to leave half of the ranch, the “Upper Ranch,” to Bo and the remaining half, the “Lower Ranch,” to Dennis. In 1993, four years before Bernice’s death, Charlie and Bernice executed wills that divided their ranch property among their five children, with preferential treatment in ranch stock given to the children operating the ranch (Bo and Dennis). This plan included a life insurance policy which would pay benefits of $100,000.00 each to Tom, Steve, and Diann (the children who did not live and work on the ranch during their adult lives) upon either Charlie’s or Bernice’s death. ¶7 After Bernice’s death in 1997 when the $100,000.00 life insurance policies were paid to Tom, Steve, and Diann, several meetings and discussions took place between Charlie, various members of the family, and occasionally representatives of the Crowley Law Firm in Billings, Montana regarding the disposition of the ranch upon Charlie’s death. Despite these meetings, a new will was not prepared or executed until the 2001 Will was put in place. ¶8 In September of2000, Charlie chose to cease his relationship with the Crowley Law Firm, instead retaining the services of Bjarne Johnson, a ranch estate tax and probate attorney in Great Falls, Montana. Charlie met with Johnson on September 19, 2000, to discuss estate planning options. Johnson testified that he had never met Charlie and did not know whether or not Charlie already had a will in place. Roughly one week after the initial meeting with Charlie, Johnson received an unsolicited e-mail from Diann which expressed concern regarding Charlie’s plans. Specifically, the e-mail informed Johnson that Charlie had been represented by the Crowley Law Firm for roughly 30 years and that Charlie had been recently diagnosed with Alzheimer’s disease. Johnson testified that Diann’s e-mail prompted him to pay particular attention to the issues of Charlie’s competence and any possible undue influence involved. ¶9 In response to these concerns, J ohnson contacted Dr. Ted Scofield, Charlie’s physician for the last year of his life. Dr. Scofield made it clear to Johnson that while Charlie did exhibit symptoms of mild senile dementia of the Alzheimer’s type, Charlie was competent to make decisions regarding his estate. During the estate planning process, Johnson observed that Charlie was aware of the nature and extent of his property, the identities of and the relationships involved with his children at the time, and the reasons for estate planning. Further, Johnson testified that Charlie presented himself well and that ultimately, Charlie’s goal was to avoid selling the ranch. Concerning Charlie’s health, testimony at trial indicated that Charlie went through occasional episodes of confusion and incontinence. However, Charlie was self-sufficient in that he lived on his own at the ranch and was able to drive himself around the ranch as he saw fit. ¶10 Johnson drafted the 2001 Will (at the complete direction of Charlie) in the following fashion: Diann was disinherited; all corporate stock in the ranch was given to Dennis; and Bo was left with those assets still in his name as a joint tenant or payee on Charlie’s pay-on- death accounts. Johnson was not able to meet Charlie in person to sign the 2001 Will. Thus, Johnson mailed a copy of the 2001 Will to Charlie on January 16, 2001, and subsequently mailed the original 2001 Will to Lance Lovell, an attorney in Big Timber, Montana. Johnson then asked Lovell to sit in his place to witness Charlie sign the original 2001 Will. Charlie signed the will on January 25, 2001, and died unexpectedly two days later, on January 27, 2001, of an apparent heart attack. ¶11 Dennis filed a petition to admit the 2001 Will to informal probate on February 5, 2001. Contestants opposed Dennis’s petition, seeking the 2001 Will be set aside and for the District Court to declare that Charlie died intestate. The District Court held a bench trial on the validity of the 2001 Will. It heard testimony from numerous witnesses and entered findings of fact, conclusions of law, and an order. The court concluded that Charlie was competent to create and execute the 2001 Will. Moreover, the court determined that the 2001 Will was not a product of undue influence on the part of Dennis. The Contestants appeal. STANDARD OF REVIEW ¶12 Section 3-2-204(5), MCA, and M. R. Civ. P. 52(a), require that in equitable cases like this one, findings of fact must be upheld unless they are clearly erroneous. In re Estate of Bradshaw, 2001 MT 92, ¶ 11, 305 Mont. 178, ¶ 11, 24 P.3d 211, ¶ 11. We must examine whether the findings are supported by substantial credible evidence. Bradshaw, ¶ 11. The evidence is reviewed in the light most favorable to the prevailing party, and the credibility of witnesses and the weight assigned to their respective testimony are up to the trial court. Bradshaw, ¶ 11 (citing In re Guardianship of Mowrer, 1999 MT 73, ¶ 36, 294 Mont. 35, ¶ 36, 979 P.2d 156, ¶ 36). Further, our role is not to determine whether there is support in the evidence for findings which were not made. Cenex Pipeline LLC v. Fly Creek Angus, 1998 MT 334, ¶ 35, 292 Mont. 300, ¶ 35, 971 P.2d 781, ¶ 35. We review a district court’s conclusions of law to determine whether those conclusions are correct. Guthrie v. Hardy, 2001 MT 122, ¶ 24, 305 Mont. 367, ¶ 24, 28 P.3d 467, ¶ 24. DISCUSSION Issue 1. ¶13 Did the District Court err when it determined Charlie was competent to execute the 2001 Will? ¶14 The test for testamentary capacity was set forth in In re Bodin’s Estate, 144 Mont. 555, 560, 398 P.2d 616, 619 (1965), as follows: [A] testator is competent if he is possessed of the mental capacity to understand the nature of the act, to understand and recollect the nature and situation of his property and his relations to persons having claims on his bounty whose interests are affected by his will .... The “testator must have sufficient strength and clearness of mind and memory to know, in general, without prompting, the nature and extent of the property of which he is about to dispose, and nature of the act which he is about to perform, and the names and identity of the persons who are to be the objects of his bounty, and his relation towards them.” (Citations omitted). Therefore, testamentary capacity requires three elements that the testator be aware of: (1) the nature of the act to be performed; (2) the nature and extent of the property to be disposed of; and (3) the objects of his or her bounty. In re Estate of Prescott, 2000 MT 200, ¶ 34, 300 Mont. 469, ¶ 34, 8 P.3d 88, ¶ 34. ¶15 Testamentary capacity is determined as of the date the will was executed, January 25, 2001, in this case, using the above test from Estate ofBodin. Prescott, ¶ 35. Proponents of a will have the burden of establishing prima facie proof of due execution while contestants of a will have the burden of establishing lack of testamentary intent or capacity, undue influence, fraud, duress, mistake, or revocation. Section 72-3-310, MCA. ¶16 In the case sub judice, the Contestants challenge the District Court’s finding that Charlie was competent to create and execute the 2001 Will. They argue there is no evidence that Charlie knew and understood the contents and effect of the document he was signing. The Contestants point out that it took Charlie a long time to read the will, that Charlie never recited the terms of the will or identified the parties involved in the will, and that no attorney ever went over the terms of the will with Charlie in draft or final form. The Contestants point to the testimony of Dr. Donna Veraldi, a psychologist, who testified that a person with some form of Alzheimer’s disease often has the tendency to appear and act as if they understand what is being said to them, but that there is no way to determine if the person truly understands. Dr. Veraldi was not able, however, to provide any opinion regarding Charlie’s mental capacity on January 25, 2001. ¶17 Three individuals testified as to their observations regarding Charlie’s testamentary capacity and demeanor on January 25, 2001. Lovell testified at trial regarding his encounter with Charlie: “I asked [Charlie] at that point, is this your last will and testament? Is this what you want to execute? [Charlie] said I do. This is correct.” Lovell further testified that Charlie carefully read over the will and that Lovell had “no question” Charlie understood and considered the will. ¶18 The other two witnesses to the signing of the 2001 Will, Sandra Callahan and Katherine Dreese, testified by deposition to the same facts as Lovell. Specifically, Dreese testified she worked in Lovell’s office, witnessed Charlie sign the will, and heard Charlie say, “this is exactly what I asked for” after Charlie read the will. Dreese further testified that “it was very clear that [Charlie] understood why he was there.” Callahan testified that Charlie knew he was there to sign his will and that Charlie appeared to understand what was going on. Both Dreese and Callahan testified that Charlie appeared in good health, was well-groomed, and dressed appropriately. ¶19 No other evidence was presented from any other person directly familiar with Charlie’s mental condition on the date he executed the 2001 Will. Therefore, we hold that the District Court’s determination that Charlie was competent to execute the 2001 Will was supported by substantial credible evidence and was not clearly erroneous. Issue 2. ¶20 Did the District Court err when it determined Charlie was not acting under undue influence in executing the 2001 Will? ¶21 Section 28-2-407, MCA, defines undue influence as: (1) the use by one in whom a confidence is reposed by another or who holds a real or apparent authority over him of such confidence or authority for the purpose of obtaining an unfair advantage over him; (2) taking an unfair advantage of another’s weakness of mind; or (3) taking a grossly oppressive and unfair advantage of another’s necessities or distress. To determine whether there has been undue influence, a court may consider: (1) any confidential relationship between the person alleged to be exercising undue influence and the donor; (2) the physical condition of the donor as it may affect his or her ability to withstand influence; (3) the mental condition of the donor as it may affect his or her ability to withstand influence; (4) the unnaturalness of the disposition as it relates to showing an unbalanced mind or a mind easily susceptible to influence; and (5) the demands and importunities as they may affect the donor, taking into account the time, place, and surrounding circumstances. Bradshaw, ¶ 13; Mowrer, ¶ 31. The five criteria may, but need not, be present in any undue influence case. The statutory requirements still control. The five criteria are simply nonexclusive considerations available to guide the trial court in its application of the statutory requirements. Bradshaw, ¶ 16 (citing Cameron v. Cameron, 179 Mont. 219, 229, 587 P.2d 939, 945 (1978)). ¶22 In determining that Charlie’s 2001 Will was valid and not a product of undue influence, the District Court set forth findings under each of the five above-listed criteria. It concluded that: (1) a confidential relationship existed between Charlie and Dennis, but that a confidential relationship also existed at times between Charlie and Diann, Charlie and Diann’s husband, and Charlie and Tom; (2) Charlie was not as healthy (either mentally or physically) as he was in earlier years, but Charlie was healthy and self-sufficient, alert, oriented, aware, and competent to do estate planning and make estate decisions both on October 9, 2000, the day Charlie explained to Johnson how he wished his property to be devised, and January 25, 2001, the day Charlie executed the 2001 Will; (3) the disposition of this case was not unnatural based on Charlie’s desire to keep the ranch intact and because Dennis was the only child who stayed and worked on the ranch his entire life; and (4) there were no demands and/or importunities on the part of Dennis in regards to the 2001 Will. ¶23 We review below whether there is substantial credible evidence which supports the District Court’s findings of fact. Confidential Relationship ¶24 The District Court found that a confidential relationship existed between Charlie and Dennis. Dennis worked closely with Charlie starting in 1967 until Charlie’s death in 2001. Dennis would chauffeur Charlie around, help him with errands, and take him to his hospital appointments. The District Court further found, however, that confidential relationships between Charlie and Diann, Charlie and Diann’s husband, and Charlie and Tom existed as well. Diann served as the secretary/treasurer of the ranch and helped Charlie with his personal expenses and tasks. She also went on several vacations with Charlie and on occasion, discussed the future of the ranch with Charlie. Further, Diann’s husband, David Stephens, assisted in Charlie’s affairs by setting up a computer for bookkeeping purposes and periodically worked directly for Charlie. Stephens and Charlie considered themselves friends and frequently socialized with each other. Finally, Tom continued to live on the ranch as an adult, but only periodically worked for Charlie during the 1990’s. During the last months of Charlie’s life, Tom would go hunting with Charlie and frequently have breakfast with Charlie. Tom would also drive Charlie around and discuss whether or not Charlie should sell the ranch. ¶25 We have previously noted that in most confidential relationships, one party provides to another party basic assistance in the form of personal care, transportation, and/or advice in financial affairs. Pense v. Lindsey, 2003 MT 182, ¶ 19, 316 Mont. 429, ¶ 19, 73 P.3d 168, ¶ 19 (citations omitted). The record supports the District Court’s finding that Dennis, Diann, David Stephens, and Tom all served these functions for Charlie at certain points throughout their lives. The mere opportunity to exercise influence on the testator is not sufficient to prove undue influence and invalidate a will. In re Estate of Wittman, 2001 MT 109, ¶ 14, 305 Mont. 290, ¶ 14, 27 P.3d 35, ¶ 14 (citation omitted). While the testimony in this case did conflict regarding confidential relationships, all parties presented evidence which supported the District Court’s findings. We hold that those findings are not clearly erroneous. Physical and Mental Condition as it may Affect His Ability to Withstand Influence ¶26 Under the second and third criteria, the District Court found that Charlie consistently resisted suggestions about what to do with his property and that Charlie was healthy, self-sufficient, alert, oriented, and aware. Testimony at trial supported the District Court’s findings. For example, Dr. Scofield testified that Charlie’s occasional confusion was related to diabetes medication and that the medication had no permanent effects on Charlie’s mental abilities. Dr. Scofield expressed to Johnson that despite his symptoms of Alzheimer’s disease, Charlie was competent to engage in estate planning. Johnson testified that in all his meetings with Charlie, that Charlie recognized him, was aware of previous conversations, understood the content of the meetings, did not drift, and never asked Dennis for any assistance or information. Johnson testified that Charlie was clean, well-groomed, and dressed appropriately. Moreover, testimony at trial indicated that Charlie resisted efforts to sell portions of the ranch. ¶27 The Contestants point out that the foregoing findings were made by the District Court in the context of evaluating Charlie’s mental and physical “capacity.” They observe that factors two and three from Bradshaw, however, are directed at “condition,” not “capacity” — particularly “the physical [and mental] condition of the donor as it may affect his or her ability to withstand influence.” Bradshaw, ¶ 13. The Contestants contend a proper analysis of undue influence requires evaluation of a weakness of mind or a mind susceptible to influence pursuant to § 28-2-407(2), MCA, as “[p]roof of undue influence does not necessarily depend upon a showing of mental incapacity on the part of the donor.” Luke v. Gager, 2000 MT 377, ¶ 38, 303 Mont. 474, ¶ 38, 16 P.3d 377, ¶ 38, overruled in part on other grounds, Bradshaw, ¶ 16. Contestants further rely on the case of Matter of Estate of Aageson, 217 Mont. 78, 702 P.2d 338 (1985), to attempt to differentiate between testamentary capacity and weakness of mind with respect to undue influence. Specifically, Contestants interpret the rule from Aageson as a mentally competent person may still have a weakness of mind which renders him susceptible to undue influence and that Charlie fit into this category. Contestants argue that despite finding that Charlie was competent to execute his will, the District Court erred in not evaluating Charlie’s alleged weakness of mind to properly determine whether undue influence occurred. ¶28 Contestants are correct in their interpretation of Aageson and are also correct that the District Court misstated the Bradshaw factors by evaluating Charlie’s mental and physical “capacity” rather than Charlie’s mental and physical “condition.” The District Court did, however, make a finding of fact specifically in regards to Charlie’s mental and physical condition as it may affect his alleged weakness of mind. The court found that Charlie “consistently resisted anyone’s suggestions about what he should do with his property...” and further, that he was healthy and self-sufficient, alert, oriented, and aware. These findings were made directly in line with the second and third elements of the Bradshaw test and address Charlie’s alleged weakness of mind and any undue influence that may have come from it. Contestants mischaracterize the District Court’s findings as applying only to testamentary capacity. Although the District Court’s observations concerning Charlie’s capacity are distinguishable from the issue of mental condition, the cotut nevertheless made the requisite findings contemplated by Bradshaw under factors two and three. We hold that these findings are supported by substantial credible evidence and are not clearly erroneous. Unnaturalness of a Disposition as it Relates to Showing a Mind Easily Susceptible to Influence ¶29 The District Court found the disposition of the 2001 Will was not unnatural. In arguing against the District Court’s finding, Contestants point out that the arrangements Charlie made effectively disinherited all of his children except Dennis. This Court has held, however, that “the fact that a parent might leave the majority of his or her assets to only one child, while excluding others, is not in and of itself unnatural.” In re Estate of Tipp, 281 Mont. 120, 126, 933 P.2d 182, 185 (1997). ¶30 In arguing that the 2001 Will was an unnatural disposition, Bo points out that he gave up his high school education to work for Charlie and spent almost the exact same number of years that Dennis did on the ranch. Bo further asserts that Charlie continually made efforts to give the ranch to both Dermis and Bo as evidenced by Charlie’s first will and several of Charlie’s statements made after Bernice died in 1997. Specifically, Bo contends that because Diann, Steve, and Tom each received $100,000.00 in life insurance proceeds after Bernice’s death, it is clear that Charlie intended Bo to receive half of the ranch as he and Dennis were both left out of the life insurance proceeds and any result otherwise would be unnatural. ¶31 Charlie had the “absolute right to destroy or change [his] will at any time, should [he] choose to do so.” See Tipp, 281 Mont. at 126, 933 P.2d at 186. Despite this, Bo argues the change must have been unnatural because it contradicted Charlie’s previously articulated desire to leave half the ranch to Bo and half the ranch to Dennis. Bo further stresses that there was no reason for Charlie to radically alter his will unless the alteration was the product of Dennis’s undue influence. ¶32 The District Court concluded, however, that the disposition of this case was not unnatural. The court based its conclusion on testimony that Charlie’s stated desire was to keep the ranch intact and that Dennis was the only sibling that had stayed on the ranch his entire life to work. Testimony from trial indicated that Charlie had obviously deeply cared for Bo and respected his work on the ranch. Nevertheless, given Charlie’s articulated rationale for keeping the ranch intact as testified by Johnson at trial, the District Court determined that the results of the 2001 Will were not unnatural. We hold that these findings are not clearly erroneous. Demands and Importunities ¶33 Lastly, the District Court examined the timing and circumstances surrounding the demands and importunities that may have affected Charlie’s ability to withstand any possible influence. The court concluded there were no demands and importunities on the part of Dennis in regards to the 2001 Will. The court did, however, find demands and importunities on the part of the Contestants. ¶34 The Contestants assert that Dennis repeatedly took unfair advantage of Charlie’s mental condition. Specifically, the Contestants argue Dennis inappropriately forced Charlie to remove Diann as his power of attorney, to not allow Diann to cash Harms Livestock checks, to cease the Crowley Law Firm’s representation of Charlie, and ultimately to have Johnson prepare the 2001 Will. Dennis responds that the Contestants arranged meetings with or without the assistance of counsel in an attempt to direct Charlie on how to handle his estate matters. Specifically, Dennis points out the Contestants contacted the Crowley Law Firm to make it clear they intended to prevent the ranch from being devised disproportionately and that Diann sent an e-mail to Johnson in an effort to make him aware that Charlie had Alzheimer’s disease. Dennis contends the Contestants produced no evidence at trial that he pressed any demands or importunities upon Charlie. The District Court agreed with Dennis in finding no demands or importunities on his part. Based on our review of the record, we conclude those findings are not clearly erroneous. ¶35 The District Court concluded that none of the five considerations used to assist a trier of fact in identifying undue influence were present in this case. The court heard conflicting testimony regarding Charlie’s mental capacity and any alleged undue influence that may have taken place. However, as we have frequently held, the District Court is in the best position to observe and examine the demeanor and candor of the witnesses, judge their credibility, and decide whether the parties have met their burden of proof; therefore, we will not second guess the District Court’s determination regarding the strength and weight of conflicting testimony. In re Marriage of Mease, 2004 MT 59, ¶ 50, 320 Mont. 229, ¶ 50, 92 P.3d 1148, ¶ 50 (citing Double AA Corp. v. Newland & Co., 273 Mont. 486, 494, 905 P.2d 138, 142 (1995)). ¶36 At most, the Contestants showed that Dennis had the opportunity to exercise undue influence. However, the opportunity to exercise undue influence on the testator is not sufficient to prove undue influence and invalidate a will. Rather, the opportunity to exercise undue influence is to be considered and correlated with the alleged acts of influence to determine if the acts amount to undue influence. Matter of Estate of Lien, 270 Mont. 295, 304, 892 P.2d 530, 535 (1995), overruled in part on other grounds, Bradshaw, ¶ 16. This Court has previously stated: Mere general influence in the affairs of life or method of living at the time of the execution of a will by a testator is not proof of undue influence in the contemplation of our statute, and, in order to establish it as a fact, it must be shown by proof that it was exercised upon the mind of the testator directly to procure the execution of the will. Mere suspicion that undue influence may have or could have been brought to bear is not sufficient. It is never presumed, and must be proven like any other fact. Wittman, ¶21. Here, while the Contestants may have suspected that undue influence was brought to bear on Charlie by Dennis, the District Comet concluded that they had not met their burden of proving it, pursuant to Section 72-3-310, MCA. ¶37 Consequently, viewing the evidence in the light most favorable to the prevailing party-Dennis, in this case-as we are constrained to do, DeNiro v. Gasvoda, 1999 MT 129, ¶ 9, 294 Mont. 478, ¶ 9, 982 P.2d 1002, ¶ 9, we hold there was sufficient credible evidence to support the District Court’s findings and the District Court did not misapprehend the effect of that evidence. ¶38 Accordingly, we hold that the District Court did not err in concluding that Charlie was competent to execute the 2001 Will and that Dennis did not unduly influence Charlie in the creation and the terms of the 2001 Will. ¶39 Affirmed. JUSTICES WARNER, COTTER, LEAPHART and RICE concur.
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On July 25, 2006, the defendant was sentenced to the following: Count I: Eighty (80) years in the Montana State Prison for the offense of Attempted Assault with a Weapon, a felony; and Count II: A commitment to the Gallatin County Detention Center for a term of six (6) months, to run concurrently with Count I, for the offense of Assault, a misdemeanor. On November 3, 2006, 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 Kirsten Mull-Core. The state was represented by Ashley Harrington. Before hearing the application, Kirsten Mull-Core advised that the Sentence Review Division that this matter is currently on appeal with the Montana Supreme Court. Therefore, it is the unanimous decision of the Sentence Review Division that Pursuant to Rule 7 of the Rules of the Sentence Review Division of the Supreme Court of Montana, the application for sentence review will be held in abeyance pending the outcome of the appeal. Notification to the Sentence Review Division must be made within sixty (60) days from the date in which the appeal is decided if a review of sentence is still desired. Done in open Court this 3rd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On November 16, 2005, the defendant was sentenced to the following: Count I: Commitment to the Department of Corrections for a term of ten (10) years, for the offense of Theft, Common Scheme, a felony; and Count II: Commitment to the Department of Corrections for a term of ten (10) years with five (5) years suspended, for the offense of Forgery, Common Scheme, a felony. Counts I & II shall run concurrently with each other and with Yellowstone County Cause Nos. DC-04-635 and DC-04-1099. On April 7, 2006, 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 David Duke. 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 increase it. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 7th day of April, 2006. Chairperson, Hon. John Whelan, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Blair Jones.
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On March 28, 2006, the defendant was sentenced to ten (10) years in the Montana State Prison, for the offense of Failure to Register as a Sex Offender, a felony, and a Persistent Felony Offender status. On August 10, 2006, 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 David Duke. The state was represented by Mark Murphy. 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 increase it. 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. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be dismissed. Done in open Court this 10 th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Douglas Harkin.
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On April 15, 2003, the defendant was sentenced for violation of the conditions of a suspended sentence as follows: GROUP B: Counts VII and XV: Eight (8) years, six (6) months in the Montana State Prison on each count, for the offenses of Deceptive Practices, a felony, to run concurrently with each other. The Defendant shall receive credit for one (1) year, six (6) months for time served while on probation. GROUP C: Counts I. II & IV: Nine (9) years in the Montana State Prison on each count, for the offenses of Issuing Bad Checks, a felony, to run concurrently with each other; Counts V & VIII: Nine (9) years in the Montana State Prison on each count, for the offenses of Deceptive Practices, a felony, to run concurrently with each other and with the sentences imposed on Counts I, II & IV. All of the sentences imposed in Group C shall run consecutively to the sentences imposed in Group B. GROUP D: Counts IX & XVI: Nine (9) years in the Montana State Prison on each count for the offenses of Theft, a felony, to run concurrently with each other and consecutively to the sentences imposed in Group C. On October 6, 2006, 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 Ed Sheehy. 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 increase it. The defendant was fdrther advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed. The Division finds that the reasons advanced for modification are sufficient due to the fact that Defendant was given credit of five (5) months and one (1) day while Defendant was in the Missoula County Jail while awaiting revocation proceedings and sentencing. However, the Defendant was also held on a “Hold for Butte” order in relation to the probation revocation proceedings for thirty-nine (39) days. The Defendant was not held in the Butte-Silver Bow County Jail on any other charges. This time was not credited in the April 15, 2003 judgment. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be remanded to the district court for the district court to correct the credit for time served to show an additional credit of 39 days for time served, for a total of 187 days credit for time served in the Missoula County Jail and the Butte-Silver Bow County Jail. DATED this 9th day of November, 2006. The Division finds that the reasons advanced for modification to the remainder of the sentence are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the remainder of the sentence shall be affirmed. Done in open Court this 6th day of October, 2006. Alt. Chairperson, Hon. Randal Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Russell Fagg.
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On February 9, 2006, the defendant was sentenced to twenty (20) years in the Montana State Prison for the offense of Burglary, a felony. On August 10, 2006, the defendant’s application for review of that sentence was heard by the Sentence Review Division of the Montana Supreme Court. The defendant was present and was represented by Matthew McKittrick. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 10th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Douglas Harkin.
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On February 23, 2006, the defendant was sentenced to twelve (12) years in the Montana State Prison, with four (4) years suspended, with no parole eligibility until the Defendant has completed Phase I and II of the Sex Offender Treatment Program, for the offense of Sexual Intercourse Without Consent, a felony. On May 5, 2006, 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 Ali Moulton. The state was not represented. The Defendant having been duly informed of the amended judgment and commitment, and having waived his right to appear before the undersigned for this pronouncement of sentence, whereupon, IT IS ORDERED, ADJUDGED AND DECREED that the sentence shall be amended as follows: Forty (40) years in the Montana State Prison. Execution of such sentence shall be suspended pursuant to Section 46-18-222(6), MCA, upon the Court’s determination that treatment of the Defendant in the local community affords a better opportunity for rehabilitation of the Defendant and for the ultimate protection of the victim and the community. The Court specifically finds that supervised release of the Defendant under the strict terms and conditions outlined in this Judgment will create a meaningful chance of rehabilitation of the Defendant. Due to the Defendant’s criminal history it is recommended he be accepted into outpatient treatment on a probationary period of six (6) months with close supervision to insure treatment compliance. Should the Defendant fail to meet the treatment and/or probation requirements, he should be required to complete the sex offender treatment in the Montana State Prison inpatient program. Treatment recommendations include: Completion of two (2) years minimum of treatment in a treatment program with standards at least equivalent to the Montana Sex Offender Treatment Association Standards or the national standards of the Association for the Treatment of Sexual Abusers. The following conditions shall also be implemented as part of the Defendant’s compliance of the terms of probation: 1. The Defendant shall be given polygraphs during treatment to assist in monitoring. 2. The Defendant shall pay for victim’s related treatment where needed. Condition #26 of the judgment shall be amended to read: The Defendant will not use or possess pornography, erotica, x-rated videos, (including explicit R-rated and cable channels), adult books or magazines such as Play-boy or Penthouse, frequent adult book stores, topless bars, and massage parlors. No 900 numbers and no Internet access as porn is easily accessed through the Internet. No cell phones with photo, video, or Internet capabilities allowed. If a cell phone is used, all bills and records will be made available to the treatment team/probation officer. It is suggested the Defendant’s wife will need to be approved as a chaperone before he is allowed to be around minor children in his home. This is a precaution that will not only protect the children in the home, but will protect the Defendant from further accusations. DATED this 8th day of June, 2006. The remaining terms and conditions of the trial court’s sentence and judgment dated February 23,2006, shall, in so far as they are not inconsistent herewith, remain unchanged. Hon. Ted L. Mizner, District Court Judge
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On January 23, 2006 the defendant was sentenced to fifteen (15) years in the Montana State Prison for the offense of Attempted Burglary, a felony. On August 10, 2006, 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 Jack Sands. The state was represented by Mark Murphy. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 10th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Alt. Member, Hon. Douglas Harkin and Member, Hon. Katherine Irigoin.
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On October 10, 2002, the defendant was sentenced to the following: Count I: Thirty (30) years in the Montana State Prison, with fifteen (15) years suspended, for the offense of DUI, Fifth Offense, a felony; and Counts II and III: Forty (40) years in the Montana State Prison, with twenty (20) years suspended, on each count, for the offenses of Criminal Endangerment, both felonies. Counts I — III shall run concurrently. On May 5,2006, 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 Larry Nistler. The state was not represented. DATED this 26th day of May, 2006. 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 increase it. 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. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive in light of sentences given toward similar crimes around the state. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be amended as follows: Counts I, II and III: Twenty (20) years in the Montana State Prison, with all but time served suspended, on each count, to run concurrently. The terms and conditions shall remain as imposed in the Judgment of October 10, 2002. Done in open Court this 5th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On July 1, 2005, the defendant was sentenced to eight (8) years in the Montana State Prison, for the offense of Robbery, a felony. On March 6, 2006, 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 Carl DeBelly. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive. ”(§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 6 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On April 18, 2006, the defendant was sentenced to two (2) years in the Montana State Prison for violation of the conditions of a suspended sentence for the offense of Issuing Bad Checks — Common Scheme, a felony. On November 2, 2006, 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 Robert Henry. 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 increase it. 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 19th day of November, 2006. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 2nd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On April 21, 2005, the defendant was sentenced to five (5) years in the Montana State Prison, for the offense of Count II: Partner or Family Member Assault, a felony. On August 10, 2006, 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 Jeffrey Michael. The state was represented by Mark Murphy. 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 increase it. 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. DATED this 21st day of August, 2006. Therefore, it is the unanimous decision of the Sentence Review Division that the application for review of sentence shall be dismissed. Done in open Court this 10 th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Douglas Harkin.
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On July 5, 2006, the defendant was sentenced to seven (7) years in the Montana State Prison, with three (3) years suspended for violation of the conditions of a suspended sentence for the offense of Theft, a felony. DATED this 19th day of November, 2006. On November 3, 2006, 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 Benjamin Anciaux. 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 increase it. 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. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive in that the crime committed in this case occurred in 1991 and was a felony theft of $300.00. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be modified to run concurrently to Lake County Cause No. DC-04-62. Otherwise, the term of the sentence and the conditions shall remain as imposed in the July 5, 2006 Judgment. Done in open Court this 3rd day of November, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Alt. Member, Hon. Kurt Krueger.
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On March 7, 2006, the defendant was sentenced to five (5) years in the Montana State Prison, to run consecutively to the Judgment in Missoula County Cause No. DC-03-254, for the offense of Criminal Possession of Dangerous Drugs, a felony. On August 10, 2006, 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 Paulette Ferguson. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 10th day of August, 2006. Alt. Chairperson, Hon. Randal I. Spaulding, Member, Hon. Katherine Irigoin and Alt. Member, Hon. Ted L. Mizner.
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The first paragraph of the March 7,2006 Decision of the Sentence Review Division states the following: “On July 27,2005, the defendant was sentenced to five (5) years in the Montana State Prison for violation of the conditions of a suspended sentence for the offense of Aggravated Assault, a felony”. The charge should be changed as contained in the September 10, 2001 Amended Information, namely the crime of ASSAULT ON A MINOR, a felony. NOW, THEREFORE, IT IS ORDERED that the first paragraph of the Decision of the Sentence Review Division dated March 7, 2006, SHALL READ as follows: On July 27, 2005, the defendant was sentenced to five (5) years in the Montana State Prison for violation of the conditions of a suspended sentence for the offense of Assault on a Minor, a felony. Chairperson, Hon. John W. Whelan.
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On October 27, 2005, the defendant was sentenced to the following: Charge I: Ten (10) years in the Montana Women’s Prison, with no time suspended and no parole eligibility until completion of any and all treatment recommended by the initial classification board at the Women’s State Prison, for the offense of Criminal Endangerment, a felony; Charge II: Ten (10) years in the Montana Women’s Prison, with no time suspended, to run consecutively to Charge I, for the offense of Assault on a Peace Officer, a felony; and Charge III: A commitment to the Ravalli County Detention Facility for a term of six (6) months, with no time suspended, to run consecutively with Charges I and II, for the offense of Criminal Mischief, a misdemeanor. On April 7, 2006, 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 Kris CopenhaverLandon. 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 increase it. The defendant was further advised that there is no appeal from a decision of the Sentence Review Division. The defendant acknowledged that she understood this and stated that she wished to proceed. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive in light of sentences given toward similar crimes around the state and that the State recommended to run the charges concurrent in the plea agreement. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be amended as follows: Charge I: Ten (10) years in the Montana Women’s Prison, with no time suspended and no parole restriction; Charge II: Ten (10) years in the Montana Women’s Prison, with no time suspended, to run concurrently with Charge I; and Charge III: A commitment to the Ravalli County Detention Facility for a term of six (6) months, with no time suspended, to run concurrently with Charges I and II. The restitution requirements and conditions shall remain the same as imposed in the October 27, 2005 judgment. DATED this 14th day of April, 2006. Done in open Court this 7th day of April, 2006. Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On November 29, 2005, the defendant was sentenced to the following: Charge I: One hundred (100) years in the Montana State Prison, with no time suspended, for the offense of Sexual Intercourse Without Consent, a felony; and Charge II: One hundred (100) years in the Montana State Prison, with no time suspended, for the offense of Sexual Assault, a felony. These terms are to run concurrently. The Defendant is ineligible for parole on both charges for twenty-five (25) years. Furthermore, the Defendant shall not be eligible for parole unless he has successfully completed the sexual offender I and II courses at the Montana State Prison. On March 7, 2006, 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 Sasha Brownlee. The state was represented by Geoffrey Mahar. The Defendant having been duly informed of the amended judgment and commitment, and having waived his right to appear before the undersigned for this pronouncement of sentence, whereupon, IT IS ORDERED, ADJUDGED AND DECREED that the sentence shall be amended as follows: Charge I: One hundred (100) years in the Montana State Prison, with no time suspended; and Charge II: One hundred (100) years in the Montana State Prison, with no time suspended. These terms are to ran concurrently. The parole ineligibility condition for twenty-five (25) years on each charge shall be omitted. However, the Defendant shall not be eligible for parole unless he has successfully completed the sexual offender I and II courses at the Montana State Prison. The remaining terms and conditions shall remain as imposed in the November 29, 2005 Judgment. Hon. Marc G. Buyske, District Court Judge.
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On February 16, 2006, the defendant was sentenced to a commitment to the Department of Corrections for a term of four (4) years for violation of the conditions of a suspended sentence for the offense of DUI, 4th or Subsequent Offense, a felony. On November 2, 2006, 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 Ed Sheehy. The state was not represented. DATED this 5th day of December, 2006. The Defendant having been duly informed of the amended judgment and commitment, and having waived his right to appear before the undersigned for this pronouncement of sentence, whereupon, IT IS ORDERED, ADJUDGED AND DECREED that the sentence shall be modified to run concurrently with the Missoula County Cause Number DC-95-182. The terms and conditions shall remain as imposed in the Judgment of February 16, 2006. Hon. Richard A. Simonton, District Court Judge.
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JUSTICE NELSON delivered the Opinion of the Court. ¶1 Jacob Fontenot (Jacob) appeals from an order of the Eighth Judicial District Court, Cascade County, concluding the District Court has jurisdiction over the custody dispute with his ex-wife Jennifer Fontenot (Jennifer), and that Jacob should be held in contempt of court for failure to fulfill the requirements of the order of the District Court. We reverse and remand. ¶2 Jacob raises three issues on appeal: ¶3 1. Did the District Court err in ruling that it has jurisdiction over the custody dispute between Jacob and Jennifer? ¶4 2. Did the District Court err in ruling that Jacob is in contempt of court? ¶5 3. Did the District Court err by making a custody determination without the statutory findings required by § 40-4-212, MCA? ¶6 Because we find Issue 1 dispositive, we do not address Issues 2 and 3. FACTUAL AND PROCEDURAL BACKGROUND ¶7 Jacob and Jennifer married on June 30, 2001, while Jacob, a Louisiana resident, was stationed with the United States Air Force in Great Falls, Montana. The couple had one child together, Wyatt, born on January 31, 2001. On November 6, 2002, Jennifer filed a petition for dissolution in the District Court, which included a proposed parenting plan for Wyatt. At that time, Jacob was serving with the Air Force in Shreveport, Louisiana. Wyatt continued to live with Jennifer in Great Falls. ¶8 On December 21, 2002, the Department of Public Health and Human Services (DPHHS) removed Wyatt involuntarily from Jennifer’s care for suspected child abuse and turned Wyatt over to Jacob. DPHHS determined Jacob had an equal right to custody of Wyatt and left subsequent custody issues to the courts. At the time of DPHHS’s action, Wyatt was nearly two years old and had lived exclusively with Jennifer. ¶9 Jacob returned to Louisiana with Wyatt and filed his own dissolution action in Louisiana on December 30,2002. Wyatt has lived in Louisiana ever since. Shortly thereafter, the Louisiana Thirteenth Judicial District Court (Louisiana court) held a hearing concerning the custody of Wyatt. Jennifer did not participate in this hearing and on the next day, the Louisiana court decided it had jurisdiction over the child custody proceedings based upon an emergency situation pursuant to the Uniform Child Custody Jurisdiction Act (UCC JA). See La. Rev. Stat. 13:1702(A)(3). Jennifer never appealed the Louisiana court’s decision. ¶10 On February 11, 2003, the District Court held a telephone conference with the Louisiana court and subsequently issued an order transferring jurisdiction to the Louisiana court reasoning that it was in the “best interest” of Wyatt for the Louisiana court to have jurisdiction. Jennifer appealed the District Court’s transfer of jurisdiction to the Louisiana court to this Court. ¶11 On September 11, 2003, we issued our Opinion, In re Marriage of Fontenot (Fontenot I), 2003 MT 242, 317 Mont. 298, 77 P.3d 206, which held that the District Court erred in not holding a hearing to determine proper jurisdiction before transferring jurisdiction to the Louisiana court. Fontenot I, ¶ 21. Further, we determined that the District Court erred by utilizing the “interest of the child” standard in determining that the transfer of jurisdiction to the Louisiana court was proper. Fontenot I, ¶ 16. We reversed and remanded the case to the District Court to hold a proper hearing on the jurisdictional issue. Fontenot I, ¶ 22. ¶12 On October 1, 2003, the Louisiana court entered a default judgment against Jennifer granting sole custody of Wyatt to Jacob. ¶13 The District Court held a hearing to determine whether it had jurisdiction over the child custody issues on April 2, 2004. Based on testimony and argument of counsel along with its interpretation of the holding in Fontenot I, the District Court determined that it had jurisdiction under the Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA). The District Court’s decision will be discussed more thoroughly below. ¶14 On June 16, 2004, the Louisiana court issued a ruling for permanent custody and child support, finding that Jennifer abandoned Wyatt and that it had permanent jurisdiction over the custody proceedings. The Louisiana court reached this decision based on the facts that Jennifer never appealed the emergency jurisdiction ruling in February of 2003 and that Wyatt had lived in Louisiana for eighteen months. ¶15 Jennifer later filed a motion in the District Court to hold Jacob in contempt of court for continuing to pursue legal proceedings in Louisiana after the District Court determined it had jurisdiction over the case. Jennifer objected to the Louisiana court’s jurisdiction for the first time on June 23, 2004, by filing a motion with the Louisiana court. ¶16 Jacob sent notice to the District Court stating he did not intend to participate in the Montana proceedings and instead planned to continue to pursue the Louisiana proceedings. In response, the District Court issued an order on July 7, 2004, which granted custody of Wyatt to Jennifer and issued a civil warrant for Jacob’s arrest after finding him in contempt of court. ¶17 The Louisiana court then held a hearing on November 16, 2004, regarding the permanent custody of Wyatt. Jennifer personally appeared at this hearing with counsel. The Louisiana court entered judgment in favor of Jacob, giving him full custody of Wyatt. This judgment was never appealed by Jennifer. ¶18 Subsequently, Jennifer filed a motion with the District Court for Jacob to show cause why he had not fulfilled the requirements of the July 7, 2004 District Court order which granted custody of Wyatt to Jennifer. A hearing was then held wherein Jacob filed a motion to dismiss the contempt charge based on lack of jurisdiction of the District Court. The District Court issued another order on July 28, 2005, again finding that Montana had jurisdiction over the custody dispute and giving Jacob 30 days to relinquish physical custody of Wyatt to Jennifer. When Jacob failed to produce Wyatt to Jennifer, another warrant for arrest for civil contempt was issued against Jacob by the District Court. ¶19 Jacob appeals. STANDARD OF REVIEW ¶20 We review a district court’s findings of fact to determine if the findings are clearly erroneous. Vannatta v. Boulds, 2003 MT 343, ¶ 7, 318 Mont. 472, ¶ 7, 81 P.3d 480, ¶ 7. We review a district court’s conclusions of law to determine whether the court’s interpretation of the law is correct. Vannatta, ¶ 7. DISCUSSION ¶21 Did the District Court err in ruling that it has jurisdiction over the custody dispute between Jacob and Jennifer? ¶22 Jacob contends that our holding in Fontenot I was merely that the District Court did not conduct the proper fact finding through a hearing to determine whether or not Montana properly has jurisdiction. Conversely, Jennifer argues that this Court, in Fontenot I, determined Montana has jurisdiction over the dispute. We agree with Jacob. We did state in Fontenot I that “[b]ecause the Louisiana court is not operating under the UCCJEA, we conclude the Louisiana court could not divest the District Court of jurisdiction under § 40-7-102(2), MCA.” Fontenot I, ¶ 20. We conclude today that ¶ 20 of Fontenot I is dictum and not part of the actual holdings of Fontenot I. There are two distinct holdings in Fontenot I. First, the District Court “erred when it relied on an ‘interest of the child’ standard in its determination regarding jurisdiction.” Fontenot I, ¶ 16. Second, the District Court “erred by making a determination regarding its jurisdiction without holding a hearing and without making any determinations of fact and law.” Fontenot I, ¶ 21. ¶23 Subsequently, the District Court, in its order dated April 12, 2004, relied on the Fontenot I dictum in finding that “because the Louisiana court was not operating under the UCCJEA, it could not divest this Court of jurisdiction under § 40-7-107(2), MCA.” The District Court made this conclusion of law based not on the actual holdings of Fontenot I, but rather on the Fontenot I dictum. Dictum is not binding precedent. State v. Montoya, 1999 MT 180, ¶ 24, 295 Mont. 288, ¶ 24, 983 P.2d 937, ¶ 24. Contrary to the District Court’s order and Jennifer’s argument, the holding of Fontenot I was not that the District Court had jurisdiction over the custody dispute, but rather that the proper hearing to determine jurisdiction did not take place. ¶24 Montana operates under the UCCJEA while Louisiana operates under the UCCJA. For purposes of this appeal, the important difference is that the UCCJA incorporates a “best interest of the child” standard in a district court’s determination of proper jurisdiction, while this standard was eliminated from the UCCJEA which Montana adopted in 1999. Fontenot I, ¶¶ 14-15. The UCCJA was adopted in all fifty states, the District of Columbia and the Virgin Islands. Stoneman v. Drollinger, 2003 MT 25, ¶ 12, 314 Mont. 139, ¶ 12, 64 P.3d 997, ¶ 12. The UCCJA was enacted to solve problems associated with jurisdictional custodial disputes. Paslov v. Cox, 2004 MT 325, ¶ 25, 324 Mont. 94, ¶ 25, 104 P.3d 1025, ¶ 25. The Montana Legislature enacted the UCCJEA in 1999, which repealed and replaced the UCCJA provisions in Montana law. Paslov, ¶ 25; Stoneman, ¶ 14. While both acts are considered “uniform,” in actuality they are not uniform with each other. Thus, the standard as to which act to apply in jurisdictional conflicts is unclear. ¶25 As we said in Paslov, ¶ 26, “[hjowever helpful the uniform enactments have been, they nonetheless operate in large part at the state level, while the parental conduct they are designed to prevent is essentially interstate in nature.” The federal government’s response to this jurisdictional conflict came in 1980, in the form of the Parental Kidnapping Prevention Act (PKPA), 28 U.S.C. § 1738A, which sets forth jurisdictional guidelines in the face of competing custody decisions by sister states. Paslov, ¶ 23. The PKPA established national standards under which jurisdictions could determine whether they had jurisdiction and what effect to give the decisions by courts of other jurisdictions. The PKPA requires full faith and credit be accorded to decisions of a jurisdiction if the court appropriately exercised jurisdiction under the PKPA standards. 28 U.S.C. § 1738A(a). ¶26 “The purpose of the PKPA is to prevent the issuance of competing decrees in sister states.” Erler v. Frier, 261 Mont. 65, 70, 862 P.2d 12, 16 (1993) (citing Nielsen v. Nielsen, 472 So.2d 133, 136 (La. App. 1985)). In Paslov, competing jurisdictional decrees from a Montana district court and the High Court of American Samoa were issued by both courts in a custody dispute. Paslov, ¶¶ 16-19. Because the law governing custodial disputes in Montana is the UCC JEA while American Samoa had not adopted the UCC JEA, we applied the PKPA to determine which court properly possessed jurisdiction of the case. Paslov, ¶ 37. Here, we are left with competing decrees of jurisdiction between Montana, which utilizes the UCCJEA, and Louisiana, which utilizes the UCCJA. Because the PKPA was intended to remedy these types of conflicts, the District Court may apply the standards set forth in the PKPA in determining which state properly has jurisdiction here. ¶27 We hold that the District Court improperly relied on the dictum from Fontenot I and thus erred in concluding, as a matter of law, that it had jurisdiction over this custody dispute. As a result of not properly determining whether it had jurisdiction, the District Court did not lawfully have authority to issue an order of contempt against Jacob or to issue a custody determination, hence we do not address Issues 2 and 3. CONCLUSION ¶28 The judgment and order of the District Court is reversed and remanded for a new hearing on the jurisdictional issue ignoring the Fontenot I dictum. We also reverse the issuance of the contempt of court order against Jacob, the arrest warrant, and the District Court’s custody order, without prejudice to the result of further proceedings consistent with this opinion. CHIEF JUSTICE GRAY, JUSTICES COTTER and MORRIS concur. Although this Court in Fontenot I used the phrase “interest of the child” in describing the District Court’s error, the proper usage from the text of the UCCJA is “best interests] of the child.” See La. Rev. Stat. 13:1702(A)(2).
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On November 14,2005, the defendant was sentenced to two (2) years in the Montana State Prison, to run consecutively with the term imposed in DC-05-0448, for violation of the conditions of a deferred sentence, for the offense of Criminal Possession of Dangerous Drugs, a felony. On March 6, 2006, 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 Richard Phillips. 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 increase it. 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. Therefore, it is the unanimous decision of the Sentence Review Division that the Application for Review of Sentence is dismissed. Done in open Court this 6 th day of March, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On January 5, 2006, the defendant was sentenced to the following: Count I: Twenty (20) years in the Montana State Prison, for the offense of Burglary, a felony; and Count II: Ten (10) years in the Montana State Prison, with all time suspended, to run consecutively to Count I, for the offense of Theft, a felony. On May 4, 2006, 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 Martin Eveland. 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 increase it. 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. The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive in light of sentences given toward similar crimes around the state. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be amended as follows: Count I: Twenty (20) years in the Montana State Prison, with ten (10) years suspended; and Count II: Ten (10) years in the Montana State Prison, with all time suspended, to run consecutively to Count I. The terms and conditions shall remain as imposed in the Judgment of January 5, 2006. Done in open Court this 4th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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On January 9, 2006, the defendant was sentenced to ten (10) years in the Montana State Prison for the offense of Theft, a felony. On May 4, 2006, 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 Joe Howard. 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 increase it. 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. Rule 17 of the Rules of the Sentence Review Division of the Supreme Court of Montana provides that “the sentence imposed by the District Court is presumed correct, and the sentence will not be reduced or increased unless it is deemed clearly inadequate or excessive.” (§46-18-904(3), MCA). The Division finds that the reasons advanced for modification are insufficient to hold that the sentence imposed by the District Court is inadequate or excessive. Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be affirmed. Done in open Court this 4th day of May, 2006. DATED this 26th day of May, 2006. Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
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