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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Plaintiff Reid Rosenthal (Rosenthal) appeals the District Court’s entry of summary judgment in favor of the Defendants Madison County (County), the State of Montana (State), and Madison County Attorney Zenker (Zenker). Rosenthal also appeals the denial of his M. R. Civ. P. 56(f) motion requesting further discovery filed after the Defendants filed their summary judgment motion, as well as the District Court’s denial of his request to add a claim for attorney’s fees under the private attorney general doctrine. We affirm.
¶2 Rosenthal filed a malicious prosecution claim and later amended it to include claims for intentional and negligent emotional distress, alleging that he suffered injuries to his reputation and business as a result of a misdemeanor complaint filed but later dismissed by Zenker. The District Court granted summary judgment in favor of all defendants after determining that Zenker’s conduct was within the scope of the County Attorney’s statutory authority and, therefore, was entitled to absolute prosecutorial immunity, barring an action against all defendants. Rosenthal argues Zenker’s conduct is not entitled to absolute immunity, but rather is entitled at best to only qualified immunity, because Zenker acted outside the quasi-judicial function by accusing Rosenthal of a violation of the Montana Streambed Preservation Act, advising the Madison County Sheriff about investigating Rosenthal, and compiling a file of reports about Rosenthal’s alleged harassment to send to the Attorney General’s office.
ISSUES
¶3 Rosenthal raises four issues on appeal:
¶4 (1) Did the Montana Tort Claims Act, § 2-9-305(1), MCA, abrogate the common law doctrine of prosecutorial immunity;
¶5 (2) Did the District Court correctly conclude that Defendants were entitled to summary judgment as a matter of law;
¶6 (3) Did the District Court correctly deny Rosenthal’s M. R. Civ. P. 56(f) motion for additional discovery to allow investigation into Zenker’s role as an investigator and legal advisor before ruling on summary judgment; and
¶7 (4) Did the District Court err in denying Rosenthal’s request to add a claim for attorney's fees under the private attorney general doctrine.
FACTUAL AND PROCEDURAL BACKGROUND
¶8 On December 6,2001, the Ruby Valley Soil Conservation District (RVSCD) sent County Attorney Zenker reports of a potential violation of the Montana Streambed Preservation Act, §§ 75-7-101-125, MCA, by Reid Rosenthal (“310 violation”). Along with the reports was a letter from the RVSCD chairman requesting prosecution of these violations and a copy of the letter from Fish, Wildlife and Parks biologist Richard Oswald to RVSCD indicating that Rosenthal’s log and utility line project along Wisconsin Creek was a 310 violation. On January 3, 2002, Zenker received a letter from the RVSCD Board of Supervisors requesting prosecution of Rosenthal and stating that Don McIntyre, attorney for the Department of Natural Resources and Conservation, advised that Rosenthal’s project was a 310 violation.
¶9 These reports and letters indicated that Rosenthal, as manager of the Three Creeks Ranch, LLC, had begun a bridge project by placing a log across Wisconsin Creek. A utility line ran -under the log. Neighboring property owners who had seen the log grew concerned that it was an unauthorized project contributing to environmental degradation of the Creek. Six people reported it to the RVSCD. Prior to filing a complaint Zenker wrote to Rosenthal, informing him of the potential violation and offering him an opportunity to acquire the requisite permit or remove the log and utility line. Through a number of correspondences, Rosenthal responded that his project was legal, that he had the requisite permit, and that he would not remove the project.
¶10 On January 24, 2002, Zenker filed a misdemeanor complaint charging Rosenthal with a 310 violation. On June 7,2002, the District Court granted Rosenthal’s request to allow an expert to testify on his behalf. The State retained its own expert. Upon learning that the State’s expert was not confident there was a 310 violation beyond a reasonable doubt, Zenker moved to dismiss the complaint against Rosenthal on July 8, 2002.
¶11 On July 21, 2003, Mr. Curtis Kruer sent a letter to the Madison County Sheriff asking that Rosenthal be investigated and punished for threatening behavior towards Stephanie Kruer. Sheriff David Schenck notified Zenker of these complaints, seeking Zenker’s input, and Zenker responded by suggesting a more thorough investigation. Zenker then contacted the Attorney General’s Office regarding its possible prosecution of Rosenthal because Zenker perceived a potential conflict of interest between the parties. The victim in the case, a local public defender, had worked with Zenker in the past, creating a potential conflict. Additionally, Zenker believed Rosenthal held a grudge against the Madison County Attorney’s Office because of the 310 case, and further involvement by Zenker would only inflame that grudge.
¶12 The Attorney General assigned the case to Barbara Harris, who charged Rosenthal with stalking and, in the alternative, trespass to property. According to Harris, a copy of the investigative file sent to her by Zenker was in turn copied and sent to Rosenthal on November 10, 2003, and April 9, 2004. Eventually, a trial was held and Rosenthal was found not guilty.
¶13 On May 14, 2004, Rosenthal filed his original malicious prosecution complaint against the Defendants herein. The court set October 15 as the deadline for amended pleadings. On October 22, Rosenthal requested leave to amend the pleadings, which Defendants opposed. On January 3, 2005, the District Court granted Rosenthal’s motion to amend all counts but Count VI, which was a request for attorney’s fees under the private attorney general doctrine.
¶14 On December 8, 2004, seven months after filing the complaint, Rosenthal’s attorney sent a letter to Defendants’ attorneys asking to arrange depositions for 19 people. On December 21, Paul Johnson, Attorney for the State and Zenker, responded to the request with deposition dates. On December 28, Rosenthal filed a notice of service of the first set of discovery requests sent to Defendant Zenker.
¶15 On January 14, 2005, Defendants filed a motion for summary judgment based on absolute immunity. They filed a brief and the supporting affidavits of Zenker and Harris five days later.
¶16 On January 25,2005, Rosenthal filed his amended complaint and jury trial demand. The amended complaint set forth no additional facts, but added causes of action for intentional and negligent infliction of emotional distress, based on “Defendants’ intentional acts” without specifying those acts. The Defendants filed a motion for protective order the next day, a renewed motion for summary judgment on January 31, and an answer to the first amended complaint on February 4.
¶17 Between February 4 and 11, Rosenthal filed notices of depositions and subpoenas duces tecum for nine individuals. On February 11, Zenker filed an emergency motion to quash and the court granted it that day, forbidding the parties from conducting depositions before determination of summary judgment. On February 15, Rosenthal filed his “refusal” of summary judgment and a request for more time for discovery. On February 16, Rosenthal’s attorney filed an affidavit in opposition to the motion for summary judgment, asserting personal knowledge of the facts at issue. Rosenthal’s own affidavit was not filed until March 3.
¶18 On March 14, Defendants filed a response to Rosenthal’s request for more time to conduct discovery, treating it as a M. R. Civ. P. 56(f). Defendants argued that Rosenthal failed to present a sufficient affidavit to meet the movant’s burden under M. R. Civ. P. 56(f). Additionally, Defendants argued that further discovery would undermine the purpose of prosecutorial immimity.
¶19 On March 25, the District Court granted Zenker and the State’s motion for summary judgment and dismissed the case with prejudice, later clarifying that the summary judgment was granted in favor of Madison County as well. After finding that summary judgment was appropriate, the District Court declined to address the additional motions of the parties because they were moot. On April 4, Rosenthal filed a timely notice of appeal.
¶20 In April, May and June, Rosenthal’s attorney conducted depositions of Zenker, Harris, David Schenck, the Madison County Sheriff, and Evan Andren, the Madison County Undersheriff, in a separate unrelated matter involving a property dispute. During the deposition of Zenker, Rosenthal’s attorney tried to ask Zenker questions regarding the malicious prosecution case. Zenker objected. In addition, during the deposition of Andren, Harris, and Schenck, Rosenthal asked questions relating to the malicious prosecution case. These questions were answered without objection.
¶21 Based upon what he learned in the depositions, Rosenthal filed a M. R. Civ. P. 60(b)(2) motion for relief, asserting newly discovered evidence that defeated Zenker’s claim of absolute prosecutorial immimity, followed a week later by another motion for leave to file a second amended complaint. However, the District Court lacked jurisdiction to rule thereon in light of Rosenthal’s previously filed notice of appeal. Consequently, Rosenthal sought from this Court a stay of the summary judgment appeal in order for the District Court to regain limited jurisdiction to rule on his M. R. Civ. P. 60(b)(2) discovery motion. We granted his motion for remand. The District Court then ordered the parties to brief the M. R. Civ. P. 60(b)(2) motion. After some procedural confusion involving another appeal and remand, the District Court denied Rosenthal’s motion for relief under M. R. Civ. P. 60(b)(2) on March 30, 2006, on the basis that the newly discovered evidence was not material to the allegations in the first amended complaint and did not mandate a different result on the summary judgment motion. This appeal follows.
STANDARD OF REVIEW
¶22 We review orders of summary judgment de novo. Bradley v. Crow Tribe of Indians, 2005 MT 309, ¶¶ 12-15, 329 Mont. 448, ¶¶ 12-15, 124 P.3d 1143, ¶¶ 12-15. The purpose of summary judgment is to eliminate the burden and expense of unnecessary trials. Hughes v. Pullman, 2001 MT 216, ¶ 20, 306 Mont. 420, ¶ 20, 36 P.3d 339, ¶ 20. However, “all reasonable inferences which may be drawn from the offered proof must be drawn in favor of the party opposing summary judgment.” Cape v. Crossroads Correctional Center, 2004 MT 265, ¶ 12, 323 Mont. 140, ¶ 12, 99 P.3d 171, ¶ 12. Where the movant has met its burden of showing that no genuine issues of material fact exist, the opposing party bears the burden of establishing an issue of material fact. The opposing party’s facts must be material and of a substantial nature, and not fanciful, frivolous, or conjectural. Fleming v. Fleming Farms, Inc., 221 Mont. 237, 241, 717 P.2d 1103, 1105-06 (1986).
¶23 The district court has discretion to decide whether to continue a motion for summary judgment pursuant to M. R. Civ. P. 56(f), on the basis that the party opposing the motion needs further discovery. This court reviews the denial of a M. R. Civ. P. 56(f) motion for an abuse of discretion. Stanley v. Holms, 1999 MT 41, ¶ 19, 293 Mont. 343, ¶ 19, 975 P.2d 1242, ¶ 19. Similarly, “[a] district court’s grant or denial of attorney fees is a discretionary ruling which we review for abuse of discretion.” Harding v. Savoy, 2004 MT 280, ¶ 68, 323 Mont. 261, ¶ 68, 100 P.3d 976, ¶ 68.
DISCUSSION
Did) the Montana Tort Claims Act, § 2-9-305(1), MCA, abrogate the common law doctrine of prosecutorial immunity?
¶24 Rosenthal first asserts that the enactment of the Montana Tort Claims Act, § 2-9-305, MCA, abrogated the common law doctrine of absolute prosecutorial immunity. He contends that § 1-2-103, MCA, supports this interpretation because it allows for a broad reading of a statute when it is at odds with the common law.
¶25 This argument is without merit. In 1976, we said: “It is an established general principle that any statutory waiver of a state’s immunity from suit is to be strictly construed.” Storch v. Board of Dir. of East. Mont. Reg. Five M.H.C., 169 Mont. 176, 179, 545 P.2d 644, 646-47 (1976). That same year, this court held that unless a statute specifically refers to prosecutorial immunity, we cannot imply the abolishment of the well-founded common law doctrine. State, etc. v. Dist. Ct., 8th Judicial Dist., 172 Mont. 88, 92, 560 P.2d 1328, 1330 (1976). Although Article II, Section 18, of the 1972 Montana Constitution abolished the concept of “sovereign immunity,” we have stated that neither the Constitution nor the Montana Tort Claims Act abolished prosecutorial immunity. State, etc., 172 Mont. at 92, 560 P.2d at 1330. In fact, we have extended the doctrine of prosecutorial immunity to include county and state governments employing the prosecutors who find themselves named defendants in tort actions. Ronek v. Gallatin County, 227 Mont. 514, 517-19, 740 P.2d 1115, 1117 (1987); Koppen v. Board of Medical Examiners, 233 Mont. 214, 220, 759 P.2d 173, 176 (1988).
¶26 In the alternative, Rosenthal maintains that Zenker is not entitled to statutory immunity because his conduct constituted oppression, fraud, and/or malice, and as such, did not arise out of the course and scope of his employment. See § 2-9-305(6)(a), MCA. However, as we explain below, we conclude that Zenker’s actions were undertaken within the authority vested in Zenker as a prosecutor, and were not outside of the course and scope of Zenker’s employment.
Did the District Court correctly conclude that Defendants were entitled to summary judgment as a matter of law?
¶27 “The doctrine of immunity evolved to protect not only judges, but also certain participants in the judicial process whose functions are closely associated with those of judicial officers.” Steel v. McGregor, 1998 MT 85, ¶ 25, 288 Mont. 238, ¶ 25, 956 P.2d 1364, ¶ 25. Prosecutors Eire entitled to absolute immunity as “quasi-judicial officers” when their judgments and conduct are functionally comparable to those implemented by judges. Steel, ¶ 25, citing Butz v. Economou, 438 U.S. 478, 512, 98 S. Ct. 2894, 2913 (1978). In Steel, ¶ 26, we stated:
Like judicial immunity, quasi-judicial immunity benefits the public-not the person being sued-by ensuring that quasi-judicial officers exercise their functions unfettered by fear of legal consequences; also like judicial immunity, quasi-judicial immunity extends only to acts within the scope of the actor’s jurisdiction and with the authorization of law----To be protected by quasi-judicial immunity, the person asserting the immunity must have acted in a quasi-judicial capacity. [Internal citations omitted.]
¶28 Rosenthal alleges that Zenker’s conduct fell outside the scope of the quasi-judicial capacity (1) when Zenker filed a complaint against Rosenthal for a 310 violation; (2) when Zenker discussed with Undersheriff Evan Andren the investigation of a stalking complaint against Rosenthal; and (3) when Zenker compiled and sent the investigative file on the stalking and trespassing to the Attorney General’s Office. We address these allegations in turn.
A. Zenker’s filing a misdemeanor complaint and later dismissing the same complaint.
¶29 Filing and maintaining criminal charges are among the many duties of a prosecutor and when a prosecutor acts within the scope of these duties, that prosecutor is absolutely immune from civil liability, regardless of negligence or lack of probable cause. State, etc., 172 Mont. at 92, 560 P.2d at 1330; Ronek, 227 Mont. at 518-519, 740 P.2d at 1118. It is clear from the record that Zenker acted within the prosecutorial authority when Zenker filed a complaint against Rosenthal for the 310 violation. Zenker also acted within the quasi-judicial function, and according to prosecutorial ethics, when Zenker later dismissed the complaint upon learning of another expert’s opinion. This is precisely the type of conduct that the prosecutorial immunity doctrine was designed to protect. As noted by the U.S. Supreme Court:
To allow this would open the way for unlimited harassment and embarrassment of the most conscientious officials by those who would profit thereby. . . . There would always be a question of possible civil action in case the prosecutor saw fit to move dismissal of the case.... The apprehension of such consequences would tend toward great uneasiness and toward weakening the fearless and impartial policy which should characterize the administration of this office. The work of the prosecutor would thus be impeded and we would have moved away from the desired objective of stricter and fairer law enforcement, [citation omitted].
Imbler v. Pachtman, 424 U.S. 409, 423-24, 96 S. Ct. 984, 992 (1976).
¶30 As the U.S. Supreme Court has held, the prosecutorial immunity doctrine requires a functional analysis of whether the prosecutor’s conduct was quasi-judicial rather than an emotional analysis of whether the prosecutor had malice. Imbler, 424 U.S. at 429-30, 96 S. Ct. at 994. Therefore, even if Zenker had arguably improper motives that influenced the decision to file the complaint, the decision to file the complaint was within Zenker’s authorized discretion and such motives cannot deprive a prosecutor of absolute immunity. Zenker properly exercised discretion, both in filing the complaint and in subsequently dismissing it when faced with the State’s expert’s equivocation. Accordingly, we conclude that Zenker is entitled to absolute immunity for this conduct.
B. The stalking complaint andl prosecution
¶31 Rosenthal argues that Zenker improperly participated in the investigation and gave legal advice to the Undersheriff who had been assigned to the stalking case. The State and Zenker contend that all of the conduct of which Rosenthal complains centers around the initiation and prosecution of criminal charges, for which absolute immunity attaches.
¶32 After several complaints by the Kruers, Sheriff Schenck forwarded the complaints to Zenker for a determination on how to proceed. After reading the chronology, Zenker wrote a letter to Schenck on April 1, 2003, in which Zenker advised Schenck to go ahead with a thorough investigation. Zenker asked the Sheriff to
[p]lease assign an officer to conduct a further investigation and provide me with a report.
Among the things you deem necessary, please ask the officer to recover all evidence referred to in the chronology (Copies of all letters, emails, telephone answering machine tapes, etc.). Also the officer should please ask the Kruers to provide a written statement regarding whether, and to what degree they suffered substantial emotional distress.
Finally, I recommend that the investigating officer offer the suspect the opportunity to make a statement. Specifically, the officer should ask for clarification of the purpose of his continued attempts to communicate with the Kruers despite their repeated attempts that he not do so.
¶33 After the investigator compiled the complaints and performed his investigation, he forwarded the information to Zenker at the Madison County Attorney’s Office. Zenker in turn sent the file to the Attorney General’s Office for further handling, asking them to review the file and prosecute any charges that the Attorney General deemed viable. Zenker properly handed the case off to the Attorney General precisely because Zenker concluded that further participation in the case could be perceived as a conflict. While Zenker may have encouraged the Attorney General to prosecute the case, the ultimate decision to file a complaint was made by the Attorney General and not Zenker. Under these circumstances, we conclude that Zenker was entitled, at the very least, to qualified immunity for those actions.
C. Qualified immunity still protects Zenker
¶34 Where allegedly injurious conduct arguably falls outside of the quasi-judicial functions, the prosecutor’s conduct is entitled to qualified immunity rather than absolute immunity. “The doctrine of qualified immunity operates to shield government officials performing discretionary functions from liability for civil damages when their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known.” Losleben v. Oppedahl, 2004 MT 5, ¶ 13, 319 Mont. 269, ¶ 13, 83 P.3d 1271, ¶ 13. We use a two-part test for determining whether the qualified immunity shield applies. Sacco v. High Country Press, 271 Mont. 209, 896 P.2d 411, 415 (1995). First, we consider in a light most favorable to the party asserting injury, whether the official’s conduct violated a clearly established constitutional right. Losleben, ¶ 14, citing Saucier v. Katz, 533 U.S. 194, 201, 121 S.Ct. 2151, 2156 (2001). If not, qualified immunity bars the suit and the case should be dismissed. Losleben, ¶ 14. If so, we determine whether a reasonable person or official would have known that his conduct violated that right. Losleben, ¶ 14.
¶35 Rosenthal does not allege, nor does the record reveal, the violation of any constitutional right by virtue of the Defendants’ actions. This being so, under Losleben, qualified immunity bars the suit (assuming for the sake of Rosenthal’s argument that absolute immunity does not). Moreover, as the District Court pointed out in its Decision and Order, Zenker’s performance of those prosecutorial duties with respect to both the 310 violation and the stalking complaint was guided by the existence of sufficient probable cause. Among other things, Zenker was presented with (1) the RVSCD chairman’s letter requesting prosecution of Rosenthal based on specific complaints of six individuals who lived along Wisconsin Creek; (2) a letter from Richard Oswald, a biologist with the Montana Department of Fish, Wildlife and Parks, indicating that Rosenthal was in violation of the 310 law; (3) several investigation reports, including photos, prepared by members of the State inspection team indicating that the log and power line crossing were in violation of the 310 law; and (4) the January 3, 2002, letter from the RVSCD Board of Supervisors requesting that Madison County prosecute Rosenthal. As to the stalking matter, the case was brought following several complaints and at the instigation of Curtis Kruer, a citizen who perceived that his wife was being threatened by Rosenthal. Zenker did not instigate this case, nor did Zenker prosecute it.
¶36 In sum, we conclude the District Court did not err in determining that under the facts presented, Zenker was entitled to immunity-be it absolute or qualified-for his actions undertaken in connection with the prosecutions of Rosenthal.
Did the District Court abuse its discretion when it denied Rosenthal’s Rule 56(f) Motion?
¶37 Next, Rosenthal argues the District Court erred in denying his M. R. Civ. P. 56(f) motion for additional discovery. As we have stated many times, the district courts have inherent discretionary power to control discovery. Environmental Contractors, LLC v. Moon, 1999 MT 178, ¶ 19, 295 Mont. 268, ¶ 19, 983 P.2d 390, ¶ 19. "This discretionary power extends to deciding whether to deny or to continue a motion for summary judgment pursuant to Rule 56(f), M. R. Civ. P., on the basis that the party opposing the motion needs further discovery.” Stanley, ¶ 19. M. R. Civ. P. 56(f) states:
Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present by affidavit facts essential to justify the party’s opposition, the court may refuse the application for judgment or may order a continuance to permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other order as is just.
¶38 A district court does not abuse its discretion in denying a M. R. Civ. P. 56(f) motion where the party opposing a motion for summary judgment does not establish how the proposed discovery could preclude summary judgment. J.L. v. Kienenberger, 257 Mont. 113, 120, 848 P.2d 472, 477 (1993, rev’d in part on other grounds); Howell v. Glacier General Assur. Co., 240 Mont. 383, 386, 785 P.2d 1019, 1020 (1989, rev’d in part on other grounds).
¶39 Rosenthal claims that additional discovery would allow him to demonstrate Zenker’s animus toward him. He argues that he should not be required to specify with precision what information he believes he will secure from discovery because he is unsure what he will learn from facts in the possession of others. He asserts that his affidavit sets forth sufficient evidence to support his claim that Zenker acted with oppression and malice. We disagree. Rosenthal’s affidavit fails to meet the requirements of M. R. Civ. P. 56(e) and 56(f) because his statements are speculative and based on belief rather than personal knowledge. Throughout his affidavit, Rosenthal accuses Zenker of threatening remarks yet is unable to substantiate these accusations or provide affidavits of additional witnesses.
¶40 Moreover, the affidavit of Rosenthal’s attorney is wholly inadequate because he lacks personal knowledge of the threats and is merely restating his client’s version of the story. As we said in Hiebert v. Cascade County, 2002 MT 233, ¶ 30, 311 Mont. 471, ¶ 30, 56 P.3d 848, ¶ 30, “[w]e have previously held that ‘an attorney’s affidavit is admissible only to prove facts that are within his personal knowledge and as to which he is competent to testify; an affidavit stating what the attorney believes or intends to prove at trial will be disregarded.’ ”
¶41 Rosenthal argues that he has not been afforded any opportunity to perform discovery and that the District Court’s denial of his M. R. Civ. P. 56(f) request denied him that opportunity. This argument misconstrues the facts. Rosenthal had every opportunity between May 14, 2004, when he filed his malicious prosecution claim, and January 14, 2005, when Defendants filed their summary judgment motion, to request discovery from the Defendants. However, Rosenthal made no attempts at discovery until December 8, 2004, when he sent a letter to Defendants’ attorneys asking them to calendar depositions with 19 people, and December 28, when he filed a notice of service of the first set of discovery requests to Defendant Zenker. On the other hand, the record is clear that the Defendants complied with discovery rules and Rosenthal’s demands for discovery.
¶42 A court need not force a party to undergo more discovery when “[t]he only reason to believe that additional, relevant evidence would materialize ... is the [plaintiffs] apparent hope of finding a proverbial ‘smoking gun.’” Davis v. G.N. Mortg. Corp., 396 F.3d 869, 885 (7th Cir. 2005). Rosenthal has failed to establish what evidence he aimed to secure or how that evidence would preclude summary judgment on the basis of absolute immunity. Moreover, even if we were to speculate with Rosenthal that new evidence would establish that Zenker’s conduct was entitled to qualified immunity rather than absolute immunity, he does not show how he will pierce the qualified immunity shield protecting Zenker.
¶43 Although the District Court did not reach the merits of the M. R. Civ. P. 56(f) motion on the basis that it was moot after granting summary judgment, “[w]e will uphold a district court’s decision if correct, regardless of the reasons given below for the result.” State v. Rensvold, 2006 MT 146, ¶ 34, 332 Mont. 392, ¶ 34, 139 P.3d 154, ¶ 34. We conclude the District Court did not abuse its discretion when it denied Rosenthal’s M. R. Civ. P. 56(f) motion.
Did the District Court abuse its discretion when it denied Rosenthal’s claim for attorney’s fees under the private attorney general doctrine?
¶44 Rosenthal argues that the allegations in his complaint were sufficient to satisfy the “private attorney general” fee shifting requirement. The State of Montana rebuts that the court correctly denied Rosenthal’s request to add this new count to his amended complaint on the basis of futility, because on the face of the pleadings this case does not qualify for fee shifting.
¶45 We agree. Moreover, in light of our conclusion here that summary judgment was appropriate, we need not address the propriety of an amendment to support Zenker’s claim for attorney’s fees.
CONCLUSION
¶46 We conclude that summary judgment on the basis of absolute prosecutorial immunity was appropriate. The moving parties met their burden by showing that they were entitled to judgment as a matter of law. The burden then shifted to Rosenthal to show that there was a genuine issue of material fact precluding summary judgment. Construing the facts in favor of Rosenthal, we conclude that Rosenthal has not met his burden because one cannot do so by merely speculating that malicious conduct may be revealed by further discovery. We further conclude that the District Court did not err in refusing to allow Rosenthal to state a claim for attorney’s fees under the private attorney general doctrine.
¶47 Therefore, we affirm.
CHIEF JUSTICE GRAY, JUSTICES NELSON, MORRIS and RICE concur.
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 Hogenson Construction of North Dakota (Hogenson) appeals from an order of the First Judicial District Court, Lewis and Clark County, granting Montana State Fund’s (State Fund) motion for summary judgment. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 Hogenson is a construction company located in North Dakota. Hogenson performed construction work in Montana. Montana law required Hogenson to have workers’ compensation coverage for any employees working in Montana. Section 39-71-402(5), MCA. Hogenson maintained coverage in Montana through State Fund and paid premiums for the policy period from July of 2000 through July of 2001.
¶3 Hogenson’s policy incorporates all the provisions of the workers’ compensation laws of Montana “as fully and completely as if written herein.” The policy requires State Fund to assume Hogenson’s liability “under the Workers’ Compensation and Occupational Disease Acts of Montana ....” State Fund agrees to defend “claims and actions which may at any time be instituted against the insured under the Workers’ Compensation or Occupational Disease Acts of Montana....” The policy states that “State Fund has no duty to defend a claim, proceeding or suit that is not covered by this insurance.”
¶4 Hogenson interviewed Harold Reynolds (Reynolds) in Oklahoma concerning a work detail in Montana. Hogenson hired Reynolds to assemble a crew to perform work in Glendive, Montana. Reynolds and his crew proceeded to Montana. Reynolds slipped on some ice on January 16,2001, while working for Hogenson at the Glendive job site. Reynolds fell onto his right elbow and injured his right shoulder, back, and lower neck. Reynolds claims that he reported his injury to Hogenson the day of the accident by submitting an Accident Investigation Report to Hogenson.
¶5 Hogenson denies receiving notice of Reynolds’s injury on January 16, 2001. Hogenson maintains that it first received notice of Reynolds’s injury and claim more than one year later on July 15, 2002. Hogenson faxed an Employer’s First Report of Injury to State Fund on that same day. State Fund sent both Reynolds and Hogenson a letter on July 16, 2002, denying liability. State Fund denied liability due to Reynolds’s failure to notify his employer of his injury within thirty days as required by § 39-71-603, MCA. State Fund also denied liability due to Reynolds’s failure to file his claim within twelve months from the date of the accident as required by § 39-71-601, MCA.
¶6 Reynolds filed a complaint in the Oklahoma Workers’ Compensation Court. He filed his complaint by submitting a document labeled Form 3. Form 3 bears the following heading: “Employee’s First Notice of Accidental Injury and Claim for Compensation.” Reynolds signed the form and dated it July 12, 2002. Reynolds’s Oklahoma counsel, Jack Tracy (Tracy), also signed the form. The filing date stamped on the Form 3 submitted by Reynolds is July 25, 2002.
¶7 Tracy notified Hogenson of the Oklahoma claim in a letter dated September 9, 2002. Neither party indicates when or if State Fund received this letter or prior notification from Tracy. State Fund’s records do indicate, however, that State Fund contacted Tracy on September 23, 2002. Tracy called State Fund on September 27, 2002, to inform it that Reynolds would pursue his claim in Oklahoma.
¶8 Hogenson retained its own Oklahoma counsel, Arlen Fielden (Fielden), to represent it in the Oklahoma workers’ compensation claim. Fielden sent State Fund a letter on January 7, 2005. The letter notified State Fund of the January 13, 2005, trial date for the Oklahoma claim. Fielden attached the Form 3 filed by Reynolds to this letter. Fielden sent another letter by both overnight mail and fax on January 11,2005. The second letter demanded that State Fund defend Hogenson in the Oklahoma case. Fielden urged State Fund to acknowledge coverage and to enter an appearance in the case by January 13, 2005. State Fund did not respond to these letters.
¶9 Hogenson moved to join State Fund as a party to the Oklahoma case. The Oklahoma Workers’ Compensation Court denied the motion for lack of jurisdiction over State Fund. The Oklahoma court awarded Reynolds $22,732. Hogenson appealed. An appellate panel of the Oklahoma Workers’ Compensation Court upheld the award.
¶10 Hogenson filed suit against State Fund in Montana District Court on January 24,2006. The amended complaint sought relief for breach of contract and common law bad faith. The parties filed cross-motions for summary judgment. The District Court granted summary judgment in favor of State Fund. Hogenson appeals.
STANDARD OF REVIEW
¶11 We review de novo a district court’s decision to grant summary judgment, using the same criteria applied by the district court under M. R. Civ. P. 56. Farmers Union Mut. Ins. Co. v. Staples, 2004 MT 108, ¶ 18, 321 Mont. 99, ¶ 18, 90 P.3d 381, ¶ 18. We must determine whether the district court correctly applied the law. Staples, ¶ 18.
DISCUSSION
¶12 Hogenson argues that State Fund’s refusal to defend Hogenson in Oklahoma frustrates the purposes behind the Montana Workers’ Compensation Act, Title 39, Chapter 71, MCA. Hogenson asks this Court to construe broadly the insurer’s duty to defend to encompass Reynolds’s claim in Oklahoma. An insurer has a duty to defend unless the claim against the insured unequivocally falls outside the policy coverage. Staples, ¶ 24. The insurer must resolve any relevant factual disputes in favor of coverage. Staples, ¶ 24. The insurer looks at facts beyond the allegations in the complaint at the insurer’s risk. Staples, ¶ 24.
¶13 Our decision in Staples reveals that Reynolds’s claim triggered State Fund’s duty to defend unless the claim unequivocally fell outside of the policy coverage. The policy requires State Fund to assume only the “liability of the insured to his employees under the Workers’ Compensation and Occupational Disease Acts of Montana ....” Hogenson’s policy expressly states that “State Fund has no duty to defend a claim, proceeding or suit that is not covered by this insurance.”
¶14 The Workers’ Compensation Act of Montana requires all claimants to present their claims in a signed writing to the employer, insurer, or department within twelve months from the date of the accident. Section 39-71-601, MCA. These requirements are mandatory. Grenz v. Fire and Cas. of Connecticut, 260 Mont. 60, 64, 857 P.2d 730, 732 (1993). We stated in Grenz that “compliance with the time limits is essential to the action.” Grenz, 260 Mont. at 64, 857 P.2d at 732. We have described § 39-71-601, MCA, as “unequivocally” requiring presentment of claims within twelve months. Grenz, 260 Mont. at 63, 857 P.2d at 732. Hogenson’s policy insures it only for liability under the Workers’ Compensation Act of Montana. The policy therefore covers only claims presented in writing within twelve months of the accident.
¶15 Hogenson alleges that it first learned of Reynolds’s injury on July 15, 2002. Hogenson informed State Fund of Reynolds’s injury on that same day. The date on the Form 3 that Reynolds submitted in Oklahoma indicates that he filed his initial complaint no earlier than July 12, 2002. Neither party provides the exact date that State Fund first received notice of this claim. State Fund did have notice of Reynolds’s claim, however, by September 27,2002. Reynolds’s lawyer notified State Fund at that time of Reynolds’s intention to pursue his claim in Oklahoma.
¶16 Reynolds claims that his injury occurred on January 16,2001. Montana law required Reynolds to present his claim by January 16, 2002. Section 39-71-601, MCA. Hogenson’s policy expressly incorporates Montana’s workers’ compensation laws. Hogenson’s policy therefore obligates State Fund to defend the claim only if Reynolds had filed it by January 16, 2002. Reynolds filed his claim more than five months after the twelve month deadline. His claim unequivocally fell outside of the policy. State Fund did not have a duty to defend Hogenson under these circumstances. Grenz, 260 Mont. at 63, 857 P.2d at 732; Staples, ¶ 24.
¶17 Hogenson asserts that even if the policy does not cover the claim, State Fund impermissibly resolved this factual issue contrary to Hogenson’s interests. Hogenson cites Staples for the proposition that an insurer must construe factual assertions from the perspective of the insured. Staples, ¶ 22. Indeed, a reviewing court must construe liberally the allegations of liability set forth in a complaint to resolve any doubts in favor of imposing a duty to defend. Staples, ¶ 22. Hogenson argues that State Fund should have resolved the factual dispute regarding Reynolds’s notice of injury as imposing a duty to defend.
¶18 Hogenson’s dispute, however, concerned only the assertion that it had knowledge of Reynolds’s injury before July 15, 2002. Reynolds submitted his first notice of accidental injury and claim for compensation on July 12, 2002, when he filed the Form 3 “Claim for Compensation.” This filing served as a signed writing claiming benefits and constituted the functional equivalent of a complaint. Form 3 alleged that Reynolds received his injuries on January 16, 2001.
¶19 Hogenson, Reynolds, and State Fund do not dispute the date of the injury. The parties also do not dispute the filing date of the initial complaint through Reynolds’s filing of the Form 3 in Oklahoma. The lack of dispute surrounding these dates relieved State Fund from having to resolve a factual issue. State Fund simply looked at the alleged date of injury and the filing date of the complaint and correctly determined that the claim fell outside the policy’s coverage. Grenz, 260 Mont. at 63, 857 P.2d at 732.
¶20 Reynolds’s claim, filed after the twelve month limit required by § 39-71-601, MCA, clearly fell outside Hogenson’s coverage under the policy. We conclude that the belated filing of Reynolds’s claim absolved State Fund of any duty to defend Hogenson in the Oklahoma action.
¶21 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER, COTTER, LEAPHART, NELSON and RICE concur.
|
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CHIEF JUSTICE GRAY
delivered the Opinion of the Court.
¶1 The State of Montana charged Mark Neil Misner with two counts of deliberate homicide in the deaths of Danny Hutchison and Wanda Lynn Hutchison. A jury in the Eighth Judicial District Court, Cascade County, found Misner guilty of both counts, and the court entered judgment against him. Misner appeals. We affirm.
¶2 We restate the issues on appeal as follows:
¶3 1. Did the District Court abuse its discretion in denying Misner’s motion for a new trial?
¶4 2. Is Misner’s claim of ineffective assistance of counsel meritorious?
¶5 3. Did the District Court err in refusing one of Misner’s proposed jury instructions?
BACKGROUND
¶6 On the afternoon of November 20,2003, Mark Neil Misner and his friend and landlord Danny Hutchison went to the Heidelberg Bar in Great Falls, Montana, where they drank, played pool, and danced to jukebox songs. Misner was renting a room in Hutchison’s house a few blocks from the bar. Misner and Hutchison later were joined at the bar by Hutchison’s ex-wife, Wanda Lynn Hutchison. Hutchison and Wanda Lynn discussed the possibility of her moving back into Hutchison’s house and helping him make mortgage payments on it to avoid foreclosure. Misner left the bar between 4:30 and 5:30 p.m., and the others stayed until approximately 8:30 p.m.
¶7 Just after 2 a.m. the next morning, Misner arrived at his cousin’s home in Black Eagle, Montana, and asked to spend the night. He explained that he had been locked out of Hutchison’s home. Misner slept at his cousin’s house and, when he awoke later that morning, said he was returning to Hutchison’s.
¶8 Shortly thereafter, a neighbor observed Misner knocking on the doors of Hutchison’s house and peering into the bay window of the kitchen. The neighbor did not see Misner get into the house and Misner did not ask the neighbor for help. Misner then drove to the Heidelberg Bar, where he asked the bartender and the “regulars” if anyone had keys to Hutchison’s house. He also used the bar’s telephone to call 911 for police, saying he had seen Hutchison slumped over the kitchen table.
¶9 Joe Henderson, a bar patron and friend of Hutchison’s, followed Misner back to Hutchison’s house, looked in the kitchen bay window and saw Hutchison. Henderson kicked the front door open. He and Misner entered the home and saw the bodies of Hutchison and Wanda Lynn in the blood-splattered kitchen. They immediately went back outside, where police arrived moments later in response to Misner’s 911 call.
¶10 Both Hutchisons had suffered fatal head injuries. Hutchison had been beaten to death, and Wanda Lynn had been beaten and shot twice in the head. All of the doors to the house had been deadbolted shut. No murder weapon was found.
¶11 Great Falls police detectives questioned Misner that afternoon. He gave an extensive videotaped interview regarding his activities on November 20 and the morning of November 21. According to Misner, Hutchison had asked him to “make himself scarce” on the evening of November 20, because Wanda Lynn was planning on spending the night at the house with Hutchison. Misner told the police officers that, when he left the Heidelberg Bar that afternoon, he went back to the house, showered and changed clothes, and left again before Hutchison and Wanda Lynn arrived there. Misner then narrated a long, intricate description of routes he drove around town all evening until he finally went to his cousin’s house around 2 a.m.
¶12 Misner told the detectives he was not able to enter Hutchison’s house on the morning of November 21 by his usual method-using a garage door opener and then a door from the garage to the house-because the battery in his garage door opener had died and he had left the dead battery on the kitchen windowsill. He explained a fresh cut on his finger as an injury from working on his truck’s clutch two days earlier. When Misner later responded to a detective’s request for a chronology of all his activities over the previous four days, however, he did not mention working on the truck clutch. Misner also told officers that he did not own or possess a gun.
¶13 Approximately one month later, the State of Montana filed an Information charging Misner with two counts of deliberate homicide. His trial was held in January of 2005.
¶14 At the weeklong jury trial, the State’s evidence against Misner was entirely circumstantial. The State showed the jury Misner’s videotaped statement. It presented testimony from Misner’s cousin and the cousin’s wife that they were surprised when Misner showed up aromad 2 a.m. at their house, where he had never before spent the night. The cousin also testified Misner asked them to wash his jacket the following morning but then left for Hutchison’s house without it.
¶15 In addition, the State presented testimony from Hutchison’s neighbor, several friends and family of Misner and the victims, Heidelberg Bar patrons and bartenders, and the officers who investigated the crime. A friend of Misner’s testified that he had loaned Misner a .22 rifle the summer before the murders, which Misner had never returned. A bartender testified that Misner called her at around 6 p.m. on the night Hutchison and Wanda Lynn were killed, asking her to pick him up to go out dancing because he was too drunk to drive himself; she declined. Friends of Wanda Lynn’s testified that she never would have left her little dog home alone-which she did the night she was killed-if she had been planning to spend the night away from home. A police officer testified he had tested the battery on the windowsill which Misner had identified as dead. The battery was not dead and, when the officer put it into the garage door opener, the garage door opener worked on the first try.
¶16 Great Falls police officers and a forensic scientist from the Montana State Crime Lab testified extensively about blood types, and about spatter, pooling and trace patterns of blood and DNA found at the crime scene and on Misner’s clothing. Numerous photographs of the bloody crime scene were introduced into evidence. An envelope addressed to Qwest-spattered with dark red stains and found on the kitchen windowsill behind the battery Misner identified as from his garage door opener-was admitted into evidence, along with three other envelopes and the battery found on the windowsill with no apparent blood on them. The State Crime Lab forensic scientist testified that blood consistent with Misner’s and Wanda Lynn’s DNA profiles was in the drain of the kitchen sink, and indications of blood with a DNA mixture consistent with Misner’s and Hutchison’s was on the bathroom showerhead.
¶17 Misner presented an expert witness who testified that Misner’s DNA at the crime scene might be explained by the facts that he lived in the house with Hutchison and had been socializing with Hutchison and Wanda Lynn before they were killed. During settlement of jury instructions, Misner offered an instruction regarding evidence which might support two reasonable interpretations, which the District Court refused to give. Misner’s counsel argued in closing that the State had not carried its burden of proving Misner guilty beyond a reasonable doubt and that the State’s evidence of his guilt was also consistent with his innocence.
¶18 The jury found Misner guilty on both counts of deliberate homicide. After he was convicted but before sentencing, Misner moved for a new trial, arguing comments made by the prosecutor during rebuttal closing argument constituted prosecutorial misconduct because they went beyond the evidence and deprived him of his right to a fair trial. The State responded, and the District Court heard oral argument. The court denied the motion for a new trial orally and, later, in writing but without written comment. The District Court then sentenced Misner and entered judgment. Misner appeals.
ISSUE I
¶19 Did the District Court abuse its discretion in denying Misner’s motion for a new trial?
¶20 We review decisions on motions for new trial under an abuse of discretion standard. State v. Clay, 1998 MT 244, ¶ 13, 291 Mont. 147, ¶ 13, 967 P.2d 370, ¶ 13 (citation omitted).
¶21 During his rebuttal closing argument, the prosecutor made certain statements and posited the theory that Misner had “staged” the crime scene. The defense did not object.
¶22 Later, in Misner’s motion for a new trial, the defense argued the comments made by the prosecutor during closing argument had deprived Misner of a fair trial. The State filed a response brief. The District Court held a hearing on the motion for a new trial, at the end of which it orally denied the motion on the basis that Misner had waived objection to the prosecutor’s comments by failing to object during closing argument. With the disclaimer “in no way suggesting that what I just said was not dispositive,” the trial court then went on to address the merits of the motion for a new trial. It ultimately determined that, in the “big picture,” there was “all kinds of evidence” about blood spatter in this case, in light of which the prosecution’s closing argument about what the evidence showed was not prosecutorial misconduct.
¶23 On appeal, Misner points out the impropriety of prosecution comments on evidence not of record during closing argument. See State v. Newman, 2005 MT 348, ¶ 30, 330 Mont. 160, ¶ 30, 127 P.3d 374, ¶ 30 (citation omitted). Misner moved for a new trial on grounds that the prosecutor had engaged in misconduct by suggesting to the jury that spatter marks on the Qwest envelope on the kitchen windowsill at the crime scene was blood spatter. He points out that, although the envelope to which the prosecutor referred had been admitted into evidence, no expert testified that the spatter on it was, in fact, blood. Misner contends the above comment by the prosecutor in rebuttal closing argument may have contributed to his conviction and, therefore, he is entitled to a reversal. See State v. Sullivan, 280 Mont. 25, 927 P.2d 1033 (1996).
¶24 The State raises the threshold argument that, to be timely, an objection must be made as soon as the grounds for objection become apparent. Where a defendant failed to object to a prosecutorial comment during rebuttal closing argument, instead raising the objection for the first time in a motion for a new trial, we concluded the defendant had waived the objection to the prosecutor’s comment and we could not consider the issue. See State v. Grace, 2001 MT 22, ¶ 35, 304 Mont. 144, ¶ 35, 18 P.3d 1008, ¶ 35. Neither the District Court in its ruling on the motion for a new trial, nor Misner in his argument on this issue on appeal, has addressed Grace, which is controlling precedent.
¶25 In partial response to the State’s waiver argument, Misner relies on Clausell v. State, 2005 MT 33, 326 Mont. 63, 106 P.3d 1175 (Clausell II), which was an appeal of a denial of a petition for postconviction relief. In Clausell II, ¶ 12, we noted that, on Clausell’s direct appeal, we had declined to address his objections to remarks made by the prosecutor during closing arguments because Clausell had failed to contemporaneously object to the remarks. See State v. Clausell, 2001 MT 62, ¶¶ 43-45, 305 Mont. 1, ¶¶ 43-45, 22 P.3d 1111, ¶¶ 43-45 (Clausell I). In the postconviction proceeding, the district court addressed the claim that the remarks during closing argument were improper. We, too, addressed that claim in the appeal of the postconviction proceeding, because of “the District Court’s decision to analyze the issue and the close nexus between Clausell’s prosecutorial misconduct claims and his ineffective assistance of counsel claims.” Clausell II, ¶ 12. We rejected Clausell’s contentions on the basis that he had had the opportunity to present his explanations of events at trial and, ultimately, affirmed the district court’s determination that the prosecutor had not engaged in misconduct. Clausell II, ¶ 18.
¶26 We agree with the District Court that our Clausell decisions support its denial of Misner’s motion for a new trial, where no objections were made to the prosecution’s remarks at the time they were made. See Clausell I, ¶¶ 43-45; Clausell II, ¶ 12. Because Misner made no objection to the prosecutor’s remarks when they were made, but instead objected for the first time in a motion for new trial, we conclude he waived his claim of prosecutorial misconduct. We hold that the District Court did not abuse its discretion in denying the motion for a new trial.
ISSUE 2
¶27 Is Misner’s claim of ineffective assistance of counsel meritorious?
¶28 Misner claims his counsel rendered ineffective assistance by failing to object to the prosecutor’s remarks in closing argument. He did not raise this claim in his motion for a new trial in the District Court.
¶29 A criminal defendant has been denied effective assistance of counsel if counsel’s conduct fell short of the range reasonably demanded in light of the Sixth Amendment to the United States Constitution, and counsel’s deficient conduct is prejudicial. State v. Rose, 1998 MT 342, ¶ 12, 292 Mont. 350, ¶ 12, 972 P.2d 321, ¶ 12 (citation omitted). To establish prejudice, a defendant must establish that there is a reasonable probability that, but for counsel’s unprofessional errors, the result of the proceeding would have been different. Rose, ¶ 19 (citation omitted).
¶30 For purposes of determining whether Misner could establish prejudice from his counsel’s failure to object during rebuttal closing argument, we need only review the District Court’s disposition of his motion for a new trial on its merits. As stated above, Misner moved for a new trial on grounds that the prosecutor had engaged in misconduct by suggesting to the jury that spatter marks on a Qwest envelope on the windowsill at the crime scene were blood spatter. At the hearing on his motion for new trial, Misner pointed out to the District Court that there had been no expert testimony identifying the spatter marks on that envelope as blood.
¶31 As mentioned above, the District Court first denied the motion for a new trial on the basis that objection to the closing argument had been waived. It also denied Misner’s motion for a new trial on the merits, explaining that “you have to look at the big picture.” The court noted “all kinds of’ evidence in this case about blood spatter, photographs depicting “an awful lot of blood spatter” and, in general, “a very bloody crime scene[,]” as well as the numerous photographs in evidence showing “blood on the walls and on the floor and so on.” The court then noted the jury would certainly draw its own conclusions about whether what they were looking at in a particular exhibit was blood.
¶32 The District Court went on to observe that, the prosecutor had referred in closing argument to the testimonies of the State’s and Misner’s blood experts about patterns typical of blood spatter. The prosecutor also had reminded the jury that the Qwest envelope was positioned in an area in which the defense expert had identified numerous other items as having blood spatter on them. Finally, the District Court stated the prosecution’s inference that the substance on the Qwest envelope was blood spatter was based on the evidence and testimony presented at trial. It ultimately determined the prosecution’s comments were appropriate references to the evidence presented and reasonable inferences therefrom, and denied the motion for a new trial.
¶33 An attorney may argue and draw reasonable inferences from evidence if there are facts to support such statements. State v. Bashor, 188 Mont. 397, 417, 614 P.2d 470, 481 (1980) (citation omitted). Here, the Qwest envelope had been admitted into evidence, as had three smaller envelopes found in front of the Qwest envelope on the kitchen windowsill. The defense’s expert witness had testified there was no physical evidence to contradict Misner’s claim he had placed the dead battery for his garage door opener on the kitchen windowsill prior to the night the victims were killed. The prosecutor stated the large Qwest envelope from the kitchen windowsill was full of “spatter,” but pointed out that the three smaller envelopes did not have visible spots or stains on them. He then posited that Misner had “staged” the crime scene by placing the smaller envelopes and the battery from his garage door opener on the windowsill after the crimes were committed. That remark was fair and reasonable in light of the evidence, and we conclude the District Court did not abuse its discretion in denying the motion for a new trial on its merits.
¶34 Given the District Court’s proper denial of Misner’s motion for a new trial on the merits, we conclude no reasonable probability exists that, had counsel objected to those remarks during closing argument, the result of the proceeding would have been different. As a result, we conclude Misner was not prejudiced by his counsel’s failure to object at that time and hold that Misner’s claim of ineffective assistance of counsel is without merit.
ISSUE 3
¶35 Did the District Court err in refusing one of Misner’s proposed jury instructions?
¶36 Misner proposed the District Court instruct the jury as follows:
If you find the evidence supports two reasonable interpretations, one of which supports guilt and the other of which supports innocence, reasonable doubt exists, and you must acquit.
Likewise, if one interpretation of the evidence appears to you to be reasonable and the other interpretation unreasonable, it is your duty to accept the reasonable interpretation and to reject the unreasonable.
The District Court refused to give this instruction and Misner asserts error.
¶37 In general, we review jury instructions to determine whether the instructions, as a whole, fully and fairly instruct the jury on the law applicable to the case. State v. Vernes, 2006 MT 32, ¶ 20, 331 Mont. 129, ¶ 20, 130 P.3d 169, ¶ 20 (citation omitted). A proposed jury instruction is properly refused if it is an incorrect statement of the law. See City of Helena v. Barrett, 245 Mont. 35, 37, 798 P.2d 544, 545 (1990) (citation omitted).
¶38 Misner advances State v. Sheriff, 188 Mont. 26, 31, 610 P.2d 1157, 1159-60 (1980), for the proposition that, when a jury finds two interpretations of the evidence equally reasonable-one of which points to the defendant’s guilt and the other to his innocence-the jury must accept the interpretation which points to the defendant’s innocence. He insists that the Sheriff proposition remains good law. We disagree.
¶39 In State v. Hill, 2005 MT 216, 328 Mont. 253, 119 P.3d 1210, we clarified the impropriety of instructing a jury that, in order to be sufficient to convict, circumstantial evidence must be both consistent with a theory of guilt and inconsistent with any other rational conclusion. We stated the correct rule that, when circumstantial evidence is susceptible to two interpretations, one of which supports guilt and the other innocence, it is the function of the trier of fact to determine which is most reasonable. Hill, ¶ 17 (citing State v. Bowman, 2004 MT 119, ¶ 53, 321 Mont. 176, ¶ 53, 89 P.3d 986, ¶ 53).
¶40 Misner’s proposed instruction would require the jury to acquit if it found the evidence could support either innocence or guilt. Pursuant to Hill, the instruction Misner proposed would have been improper, and the District Court did not err in refusing to give it.
¶41 Affirmed.
JUSTICES NELSON, WARNER and MORRIS concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Kirk Wayne Spencer (Spencer) appeals from his conviction in the Tenth Judicial District, Fergus County, of sexual intercourse without consent with his stepdaughter. We affirm.
¶2 We restate the issues as follows:
¶3 Did the introduction of S.S.’s hearsay statements violate Spencer’s Sixth Amendment right to confrontation?
¶4 Did the District Court fail to comply with § 46-16-220, MCA, regarding the admissibility of child hearsay?
¶5 Did the District Court err in excluding Dr. Scolatti’s videotaped testimony?
BACKGROUND
¶6 Bill and Lisa Weaver became foster parents of Spencer’s infant daughter, T.S., twenty-two-month-old daughter, R.S., and three-and-a-half-year-old stepdaughter, S.S., on April 2, 2004. Shortly after beginning foster care, Lisa repeatedly observed S.S. and R.S. exhibiting sexualized behavior, such as masturbating, trying to touch other’s breasts and genitals, trying to insert toys and other objects into their vaginas, and sexually playing with toys, dolls, T.S., and one another.
¶7 In May 2004, the Weavers informed Roger Johnson, a social worker with the Department of Public Health and Human Services (DPHHS), of the girls’ behavior, and he referred them to Dr. Nora Gerrity, a pediatrician, to determine whether the children had been abused. Dr. Gerrity physically examined R.S. and S.S. and discovered slight irregularities in R.S.’s hjunen and a Ml transection in S.S.’s hymen, consistent with a penetrating injury.
¶8 Following the examinations with Dr. Gerrity, R.S. and S.S. began seeing Maggie Moffatt, a licensed clinical professional counselor. During the counseling sessions, S.S. made several statements indicating that Spencer had sexually abused S.S. Ms. Moffatt reported these statements to Johnson, who then reported this information to law enforcement. S.S. made similar statements to Lisa Weaver, S.S.’s foster mother.
¶9 The State charged Spencer with sexual intercourse without consent on June 8, 2004. The State later added a second count of sexual intercourse without consent for the alleged sexual abuse of R.S. Spencer pled not guilty to both counts.
¶10 The State filed on September 29, 2004, its first notice of intent to introduce S.S.’s hearsay statements made to Ms. Moffatt, if S.S. was unavailable for trial. The State later filed a second and third notice to introduce S.S.’s hearsay statements made to Ms. Moffatt and Lisa Weaver. At an evidentiary hearing on January 3, 2005, the State and Spencer stipulated that S.S. would be “unavailable” to testify. Following briefing on the hearsay statements’ admissibility, the District Court ruled that S.S.’s hearsay statements could be admitted through the testimony of Ms. Moffatt and Lisa Weaver. The State then filed a fourth notice of intent to introduce S.S.’s hearsay statements made to Ms. Moffatt; this motion was orally granted at trial. At trial, the District Court also granted the State’s motion to exclude video testimony of Dr. Michael Scolatti, a licensed clinical psychologist, whose testimony indicated that Spencer did not meet the diagnostic criteria of a pedophile. Spencer’s jury trial began March 14, 2005.
¶11 Ms. Moffatt testified about several statements S.S. made regarding sexual abuse and Spencer. Moffatt testified that on one occasion, in response to a question about naps, S.S.’s “ ‘eyes got really big and she said Kirk makes me rest on the couch and then he puts his potty thing inside me.’ She says ‘right here’ and she points to her private area with her finger, ‘and it hurts really lots.’ ” Ms. Moffatt testified that S.S. told her that Kirk was “my dad.” According to Ms. Moffatt, S.S. referred to “Kirk” or “my dad or my daddy” when discussing sexual behavior. Ms. Moffatt further testified that S.S. claimed that no one except her dad had ever touched her that way and that, “Daddy told me not to tell anyone what he did.” Ms. Moffatt also testified that S.S. related instances of Spencer performing oral sex on S.S. and R.S. Ms. Moffatt testified that S.S.’s statements were unexpected and that she had not used leading questions or coaching techniques to elicit S.S.’s responses.
¶12 Lisa Weaver testified that on one occasion when Lisa was tucking S.S. in for bed, S.S. spontaneously stated that her “my daddy, my other daddy, stuck his pee-er in me and it hurt real bad[.]” Lisa testified that she understood “other daddy” to mean Spencer. On another occasion, while S.S. and T.S. were playing in their play tent, Lisa overheard S.S. say, “[n]ow, [T.S.], you lie down like this. It doesn’t hurt-this is how Kirk does it[.]” Lisa testified that she opened the tent and saw T.S. lying on her back with her legs lying wide open.
¶13 The jury found Spencer guilty of sexual intercourse without consent with S.S. and not guilty of sexual intercourse without consent with R.S. The court sentenced Spencer to thirty-five years in Montana State Prison. Spencer appeals his conviction.
STANDARD OF REVIEW
¶14 We review de novo a district court’s interpretation of the Sixth Amendment. State v. Mizenko, 2006 MT 11, ¶ 8, 330 Mont. 299, ¶ 8, 127 P.3d 458, ¶ 8. We review a district court’s evidentiary rulings for abuse of discretion. Mizenko, ¶ 8. A court abuses its discretion when it acts arbitrarily, without employing conscientious judgment, or “exceeds the bounds of reason, resulting in substantial injustice.” State v. Matz, 2006 MT 348, ¶ 34, 335 Mont. 201, ¶ 34, 150 P.3d 367, ¶ 34.
DISCUSSION
¶15 I. Did the introduction of S.S.’s hearsay statements violate Spencer’s Sixth Amendment right to confrontation?
¶16 Spencer claims that the District Court incorrectly ruled that S.S.’s statements to Ms. Moffatt and Lisa Weaver were non-testimonial and thus implicated Montana hearsay law, rather than the Sixth Amendment. The Sixth Amendment of the United States Constitution, applicable to the states through the Fourteenth Amendment, guarantees criminal defendants the right to be confronted with the witnesses against them. Testimonial hearsay statements are inadmissible unless the declarant is “unavailable” for trial and the defendant had a prior opportunity for cross-examination. Crawford v. Wash., 541 U.S. 36, 68, 124 S. Ct. 1354, 1374 (2004). The Sixth Amendment’s Confrontation Clause applies only to testimonial hearsay. Davis v. Wash., 126 S. Ct. 2266, 2274-75 (2006).
¶17 We discussed in Mizenko what constitutes a testimonial statement. In general, a declarant’s statements are presumed testimonial if they are knowingly made to a police officer or government agent. Mizenko, ¶ 23. A statement is presumed non-testimonial, however, if the declarant had “objective reason to believe” that the statement served only “to avert or mitigate an imminent or immediate danger” and the agent receiving the statement lacked intent to create evidence. Mizenko, ¶ 23. A statement made to a nongovernmental agent is non-testimonial unless the declarant had “clear reason to believe that the statement would be used in court as substantive evidence against the defendant[.]” Mizenko, ¶ 23. Thus, whether the declarant’s statement was to a governmental agent or to a non-governmental agent determines which standard applies.
¶18 Spencer claims that Ms. Moffatt and Lisa Weaver were acting under color of law as State investigators for the purpose of criminally prosecuting him. Spencer bases this assertion primarily on the fact that foster parents and social workers are statutorily required to report child abuse or neglect to DPHHS. Section 41-3-201, MCA. Spencer further asserts that law enforcement waited for and completely relied on results from Ms. Moffatt’s interviews with S.S. and R.S. to identify Spencer. Based on these assertions, Spencer claims that his criminal prosecution is the result of a “joint investigation” by law enforcement, the Fergus County Attorney, DPHHS, Ms. Moffatt, and the Weavers. Spencer further argues that because S.S.’s statements to Ms. Moffatt and Lisa Weaver were made during this “joint investigation,” the statements are testimonial. We disagree.
¶19 Though we can conceive of factual circumstances that could support an “under color of law” argument, Spencer has offered scant evidence to support his conclusory statements. Spencer is correct that § 41-3-201, MCA, requires foster parents and social workers to report suspected child abuse or neglect. In addition to foster parents and social workers, the statute also requires reporting by physicians, residents, interns, and other hospital staff; nurses, osteopaths, chiropractors, podiatrists, medical examiners, coroners, dentists, optometrists, and other health or mental health professionals; religious healers; school teachers and school employees; day-care facility staff; and, clergy members, among others. Section 41-3-201, MCA. There is no indication, however, that the Legislature intended to deputize this litany of professionals and individuals into law enforcement, and we refuse to attach that significance to the duty to report.
¶20 Moreover, the trial testimony belies Spencer’s claim of a “joint investigation.” Ms. Moffatt is employed as a counselor with a private practice, not the State. She counsels children and adults on a variety of issues, including depression, anxiety, and abuse. Ms. Moffatt testified that she began seeing S.S. and R.S. in May 2004 and continued to see S.S. and R.S. after Spencer was charged, including up to the time of her testimony. She testified that she counsels the children on issues other than sexual abuse, including basic memory and learning skills. Ms. Moffatt testified that S.S.’s initial statements regarding sexual abuse were unexpected and not the product of coaching or leading questions. Ms. Moffatt further testified that she did not know who “Kirk” was when S.S. declared that “Kirk... puts his potty thing inside me ... and it hurts really lots.” It was only later, again in response to a non-leading question, that S.S. identified “Kirk” as her dad. Though the record indicates that Spencer was charged the day after Ms. Moffatt communicated Spencer’s identity to DPHHS, Ms. Moffatt’s testimony indicated she was unaware that law enforcement awaited the results of her interviews with S.S. and R.S. before charging Spencer. We conclude that Ms. Moffatt served solely as a counselor to S.S. and R.S. and did not function as a State investigator.
¶21 Lisa Weaver testified that as a licensed foster parent she was trained to write things down that seemed important and to contact the DPHHS social worker if problems persisted. Lisa testified that if she encountered such issues she usually contacted Roger Johnson, a DPHHS social worker, so that she could learn how to best help S.S. and R.S. Lisa’s testimony indicated that she contemplated S.S. and R.S. living with the Weavers permanently and that she spoke with Ms. Moffatt about how to build trust for the future. Lisa described as “out of the blue” S.S.’s statement that “my daddy, my other daddy, stuck his pee-er in me and it hurt real bad[.]” Lisa further testified that she did not ask follow-up questions because her job is to give the children a good home life not to be a counselor. Our review of the record indicates that Lisa Weaver heard S.S.’s statements in her capacity as a foster parent, not as a State investigator.
¶22 Having determined that Ms. Moffatt and Lisa Weaver were not acting as governmental agents when they heard S.S.’s statements, Mizenko counsels that S.S.’s statements are non-testimonial unless she had “clear reason to believe” the statement would be used against Spencer in court. Mizenko, ¶ 23. However, the Mizenko “clear reason to believe” standard as applied to a three-and-a-half-year-old childdeclarant is unworkable; it is strained, awkward, and easily capable of abuse. We find the Supreme Court’s reasoning in Davis helpful in resolving this issue. In Davis, the Supreme Court held that, in police interrogations, a statement’s classification as testimonial or non-testimonial depends largely on the primary purpose of the interrogation producing the statement, based on objective circumstances. 126 S. Ct. at 2273-74. If the interrogation’s primary purpose is to aid police in an ongoing emergency, the statements are non-testimonial; if the interrogation’s primary purpose is to establish past facts potentially relevant to a later criminal prosecution, the statements are testimonial. Davis, 126 S. Ct. at 2273-74.
¶23 Applying Davis’s reasoning to this case, the objective circumstances indicate that when Ms. Moffatt and Lisa Weaver heard 5.5. ’s statements the primary purpose of their interactions with S.S. and R.S. were counseling and parenting, respectively. Ms. Moffatt’s interactions with S.S. and R.S. took place in her office, often while she played on the floor with them. As discussed in ¶ 20, Ms. Moffatt’s purpose was to help counsel S.S. and R.S. Based on these circumstances, the primary purpose of Ms. Moffatt’s interaction with S.S. and R.S. was to provide them counseling, not to establish past facts from them for use in Spencer’s prosecution.
¶24 Similarly, Lisa Weaver interacted with S.S. and R.S. in the home. Lisa was tucking S.S. into bed when S.S. stated that her “other daddy” had abused her. Lisa overheard S.S.’s statement to T.S.-to “lie down like this. It doesn’t hurt - - this is how Kirk does it”-while the girls were playing and she was getting camping supplies together. In essence, the primary purpose for Lisa’s interactions with S.S. and R.S. was parenting.
¶25 We hold that S.S.’s statements were non-testimonial. Thus, the introduction of S.S.’s hearsay statements did not violate Spencer’s Sixth Amendment right to confrontation.
¶26 II. Did the District Court fail to comply with § 46-16-220, MCA, regarding the admissibility of child hearsay?
¶27 Spencer asserts that the District Court failed to hold a hearing addressing the trustworthiness of S.S.’s hearsay statements and failed to issue findings of fact and conclusions of law setting forth its reasoning for admitting S.S.’s statements; thus, Spencer argues, the District Court failed to comply with Montana’s child hearsay rule. We disagree.
¶28 The District Court held a hearing on January 3, 2005, in which the State and Spencer questioned Ms. Moffatt and Lisa Weaver regarding S.S.’s statements. At the hearing, Spencer’s counsel stated in a question to Ms. Moffatt, “I will try not to repeat what [the prosecutor] has already gone through because he has done a good job in looking at the statutory criteria that the Judge needs to look at.” (Emphasis added.) Then, after allowing supplemental briefing, the District Court issued its order admitting S.S.’s hearsay statements on March 8, 2005. We find no error in the District Court’s hearing process. ¶29 The admissibility of non-testimonial hearsay statements is governed by the individual states’ hearsay laws. Crawford, 541 U.S. at 68, 124 S. Ct. at 1374. Section 46-16-220, MCA, sets forth the requirements for admitting child hearsay in Montana criminal proceedings.
¶30 A district court may admit a child-victim’s hearsay in criminal cases if the child is unavailable as a witness; the hearsay is evidence of a material fact, and more probative than any other available evidence; the offering party gives proper notice of the statement; and the court finds the statement has circumstantial guarantees of trustworthiness. Section 46-16-220, MCA. If these elements are met, the statute then instructs a court to set forth its reasoning on the admissibility of the child-hearsay in findings of fact and conclusions of law. Section 46-16-220, MCA. The statute specifically instructs courts to consider the child-victim’s attributes, information regarding the testifying witness, information regarding the statement, corroborating evidence, and other considerations. Section 46-16-220, MCA.
¶31 In this case, the District Court issued a twelve-page order setting forth its reasoning regarding the admissibility of S.S.’s hearsay statements. The District Court noted that the parties had stipulated to S.S.’s unavailability. The District Court adopted as findings of fact the State’s three “Notice[s] of Intent to Introduce Hearsay Statements,” which contained detailed descriptions of the hearsay statements. The District Court also concluded that S.S.’s hearsay statements were the most probative evidence because the crime “left only modest physical evidence.” The District Court then proceeded to analyze one-by-one the factors listed in § 46-16-220, MCA:
1. The Attributes of the Child Hearsay Declarant
a. The child’s age: S.S. was approximately three and one-half years old when she made the initial statement to her counselor and her foster mother.
b. The child’s ability to communicate verbally: S.S.’s ability to communicate was slightly less than age appropriate and, according to her counselor, difficult to understand at times.
c. The child’s ability to comprehend the statements or questions of others: Again, age appropriate, but marginal compared to a typical competent witness.
d. The child’s ability to tell the difference between truth and falsehood: Probably age appropriate.
e. The child’s motivation to tell the truth (i.e., whether the child understands the general obligation to speak truthfully and not fabricate stories): There is no reason to believe that S.S. does not love her father or that she would want him to get in trouble.
f. Whether the child possessed sufficient mental capacity at the time of the alleged incident to receive an accurate impression of it: S.S. apparently received an accurate impression of what had happened to her, as evidenced by the repetition of similar facts on separate occasions, one being with no adults present whatsoever.
g. Whether the child possesses sufficient memory to retain an independent recollection of the events at issue: S.S. repeated the allegations several times.
2. The Witness Relating the Hearsay Statement.
a. The witness’s relationship to the child: The witnesses who would testify about their conversations with S.S. are her foster mother and her counselor. There is also an audiotape which is not altogether clear.
b. Whether the relationship between the witness and the child might have an impact on the trustworthiness of the hearsay statement: This seems very unlikely given the manner and timing of the various statements; emphasizing again that the same facts were revealed in circumstances where the child did not know an adult was present.
c. Whether the witness might have a motive to fabricate or distort the child’s statement: No, neither the counselor nor the foster mother showed any animosity to the father and genuinely appeared to want to represent the statements as accurately as possible.
d. The circumstances under which the witness heard the child’s statement, including the timing of the statement in relation to the incident at issue and the availability of another person in whom the child could confide: The first statement was made at an unknown time after the crime. By clear and convincing evidence, this Court finds and concludes that the child’s counselor maintained a strict patient-counselor relationship and at no point did this counselor become an interrogator or interviewer. She was first, foremost and always a therapist. Given that, the child’s revelation to Ms. Moffatt is deemed by this Court to have been at a reasonable time after the incidents and that no one else was available for such revelation except the foster mother.
The Court wants to specifically note that it has had frequent recourse to the testimony of Ms. Moffatt. Not only is she highly credible, reliable and professional, there are few witnesses whose testimony this Court would deem more trustworthy. While the Court finds and concludes that the revelations to the foster mother also were made in reasonable relation to the incidents and that she was clearly one of the few people in this child’s life she could trust or could make such statements to, the indicia of reliability is even higher here. As noted above, the foster mother overheard S.S. tell her 1½ year old sister, “Lay down, this won’t hurt, this is how Kirk does it.” The circumstances of that revelation bear a very high indicia of reliability.
3. The Statement Itself.
a. Whether the statement contains knowledge not normally attributed to a child of the declarant’s age: It is unknown whether a child of S.S.’s age would typically be able to conceive of having her private parts licked or probed. It would be the height of irrationality to deem it otherwise.
b. Whether it was volunteered spontaneously: The initial statements to the counselor and the foster mother were volunteered. The subsequent statements were also volunteered. The statements were each and all highly similar. These were not interviews or interrogations which gave rise to the statements.
c. The suggestiveness of prior statements by the witness relating the statement or third parties present when the statement was made: This Court specifically rejects any contention that there was suggestion implanted prior to any of these statements or that the presence of a third person might have stimulated them - there was no third person.
d. If statements were made by the child to more than one person and were very consistent.
4. Other Considerations
The particular facts of a case may present the court with considerations other than those outlined above that in the court’s judgment will bear on the admissibility of the proffered testimony: It is inconceivable that a child of 3½ would have the sexual knowledge and behaviors exhibited here. That is a persuasive consideration. Exceptionally persuasive was the statement made by S.S. to her sister and overheard by her foster mother. Reflecting as it did the precise statements made at other times to both the foster mother and the counselor, this constitutes a fundamental consideration which leads this Court to conclude that the statements of S.S. have particularized guarantees of trustworthiness. Cross-examination of S.S. about these statements would be of decidedly marginal utility and would in fact be destructive of the very fragile psyche of this young child.
¶32 After considering all the factors required by statute, the District Court determined that S.S.’s statements were admissible through Ms. Moffatt’s and Lisa Weaver’s testimony. Though the District Court did not specifically label a heading “findings of fact” and “conclusions of law,” we cannot say that the District Court acted arbitrarily, without employing conscientious judgment, or that its decision exceeded the bounds of reason and resulted in substantial injustice. Matz, ¶ 34. We hold that the District Court adequately complied with § 46-16-220, MCA, and did not abuse its discretion in admitting S.S.’s hearsay statements.
¶33 We note further that the District Court did not discuss the “corroborating evidence” factors in light of our holding in State v. S.T.M. that corroborating evidence could no longer be considered in assessing a hearsay statement’s reliability. 2003 MT 221, ¶ 34, 317 Mont. 159, ¶ 34, 75 P.3d 1257, ¶ 34. We decided S.T.M. prior to Crawford and our holding was based on the Supreme Court’s decision in Idaho v. Wright, 497 U.S. 805, 110 S. Ct. 3139 (1990). We removed the corroborating evidence factor because we could not “conceive of a case in which the admission of the hearsay statements of an alleged victim of child sexual abuse would not implicate the Confrontation Clause as well as the rule against hearsay.” S. T.M., ¶ 34. The Supreme Court’s rulings in Crawford and Davis recently have clarified that the Confrontation Clause only applies to testimonial statements; thus, it is now entirely conceivable that a hearsay statement that fails to implicate the Confrontation Clause may nevertheless be inadmissible hearsay. Davis, 126 S. Ct. at 2274-75. However, the “corroborating evidence” factor does not affect the case before us; the District Court’s lack of “corroborating evidence” analysis could only advantage Spencer because the District Court did not consider as evidence S.S.’s and R.S.’s physical injuries discovered by Dr. Gerrity. Thus, we leave for another day an analysis of S.T.M.’s continued vitality. In light of Crawford, however, we note that courts must again consider Confrontation Clause and hearsay challenges independently, contrary to our announcement in S.T.M., ¶ 22.
¶34 III. Did the District Court err in excluding Dr. Scolatti’s videotaped testimony?
¶35 Spencer claims that the District Court erred in excluding Dr. Scolatti’s videotaped testimony in which Dr. Scolatti stated that Spencer lacked the diagnostic criteria of a pedophile. Spencer argues that Dr. Scolatti’s testimony served to rebut the mental state element of sexual intercourse without consent. Spencer directs us to § 46-14-213(2), MCA, in support of his contention:
When a... licensed clinical psychologist... who has examined the defendant testifies concerning the defendant’s mental condition, the ... licensed clinical psychologist... may make a statement as to the nature of the examination and the medical or psychological diagnosis of the mental condition of the defendant.
¶36 Spencer’s reliance on § 46-14-213(2), MCA, is misplaced. When read in its proper context, § 46-14-213, MCA, applies only if mental disease or defect is an issue or if a defendant’s fitness to proceed is in question. Section 46-14-213, MCA. Our review of the record reveals neither of these issues exists.
¶37 The District Court excluded Dr. Scolatti’s testimony as improper character evidence -under M. R. Evid. 404. Though we note that Rule 404 contains an exception that allows a defendant to offer pertinent character evidence, we cannot say the District Court excluded Dr. Scolatti’s testimony arbitrarily, or without employing conscientious judgment, or that its decision exceeded the bounds of reason and resulted in substantial injustice. Matz, ¶ 34.
¶38 Spencer argues on appeal, as he did below, that Dr. Scolatti’s testimony served to generally rebut the mental states of purposely and knowingly. The District Court rej ected this contention, stating that the testimony was “distinctly not about the Defendant’s mental condition but about his not being a member of a diagnostic group-pedophiles.” The District Court concluded:
Defendant argues that because he was diagnosed as not being a pedophile, he could not have the requisite intent. That clearly was a matter for the province of the jury. Given that the “diagnostic criteria” here was less a diagnosis of mental condition and more whether the Defendant was or was not includable in that grouping called pedophiles and thus whether he could or could not exhibit behaviors of members or non-members of that class, it would be impermissible testimony before the jury.
¶39 Our review of Dr. Scolatti’s testimony supports the District Court’s conclusion that such testimony would be improper in this case. Moreover, we question the relevance of Dr. Scolatti’s testimony and whether it could have assisted the trier of fact.
¶40 Though Dr. Scolatti conducted a number of tests and psychological evaluations, much of his testimony focused on the Abel Assessment for Sexual Interest test (the Abel test). The Abel test consists of two-parts: (1) a questionnaire focusing on a variety of areas including demographics, sexual-interest, social desirability, and the problematic thinking of sex offenders; and (2) a test measuring the visual reaction time to a series of slides that feature various gender and age categories. In his testimony, Dr. Scolatti stated that the Abel test is controversial among researchers and that he thought the test could be “beaten.” He also stated that, when applied to an existing offender group, the Abel test identified child molesters “with different levels of success.”
¶41 Dr. Scolatti further testified that Spencer did not have the diagnostic criteria of a pedophile based, in part, on the fact that “Spencer ... did not tell me he had any sort of sexual interest pattern or sexual interest or arousal to children in fantasy.” Finally, Dr. Scolatti observed that not all people who commit sex crimes have a deviant interest pattern and that a person could fail to meet the criteria of a pedophile yet still sexually abuse a child. We conclude that whatever relevance Dr. Scolatti’s testimony may have possessed, the dangers of confusing the issues or misleading the jury substantially outweighed its probative value, and thus it ran afoul of M. R. Evid. 403. We will uphold a district comet’s correct decision even if its reasoning was incorrect. State v. Rensvold, 2006 MT 146, ¶ 34, 332 Mont. 392, ¶ 34, 139 P.3d 154, ¶ 34. Based on our review of the District Court order and Dr. Scolatti’s testimony, we hold that the District Court acted within its discretion in excluding Dr. Scolatti’s testimony.
CONCLUSION
¶42 We conclude that S.S.’s statements were non-testimonial and did not implicate Spencer’s Sixth Amendment right to confrontation. Additionally, the District Court did not abuse its discretion in admitting S.S.’s hearsay statements and excluding Dr. Scolatti’s testimony. We affirm the District Court’s judgment.
CHIEF JUSTICE GRAY, JUSTICES WARNER, MORRIS and RICE concur.
As discussed in ¶ 10, the District Court granted the State’s fourth notice of intent (filed March 10, 2004) at trial.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellants George and Virginia Byrum and the heirs and devisees of Larry Dwyer and the Dwyer Family Trust appeal from an order of the Fifth Judicial District Court, Madison County, granting a prescriptive easement to Robert and Leslie Clark. We affirm.
¶2 We consider the following issues on appeal:
¶3 1. Did the District Court err by entering findings of fact related to “public use” of the disputed portion of roadway?
¶4 2. Did the District Court err in declaring a private prescriptive roadway easement for “subdivision or residential access” to tracts created by subdivision in the 1960s?
¶5 3. Should the Clarks be awarded costs and damages for having to defend this appeal?
BACKGROUND
¶6 The disputed roadway and prescriptive easement in question here is located in Section 33, Township 1 South, Range 5 West (Section 33) of Madison County. Section 33 is divided by the Burlington Northern Railroad that runs northeast and southwest across the land. The Jefferson River also divides Section 33, meandering through the northern half and southwest quadrant. Robert and Leslie Clark (the Clarks) are the present fee simple owners of real property located in Section 33 along the Jefferson River comprising of Parcel A, Tract A, Tract F, and Tract H as depicted by the Certificate of Survey filed for record on September 7, 2004, in Book 7 of Surveys, Page 1706-BA, of the records of Madison County. The Clarks acquired this property over a seven-year period beginning in 1979.
¶7 In 1979, the Clarks entered a contract to purchase, including an option to purchase, land in the southwest quadrant of Section 33 from Edward and Vivian Judd (the Judds). From 1979 to 1986, the Clarks lived in the old Judd farmhouse. Pursuant to the contract to purchase, the Judds executed and delivered a warranty deed to the Clarks for a twenty-acre tract of the original Judd property known as Parcel A, for the purpose of building a house thereon. Parcel A is a triangular tract of land with its hypotenuse adjoining the western side of the railroad. The Clarks recorded the deed on September 11, 1986. Also in 1986, the Clarks assigned the right they held to purchase the remaining Judd property, including the original Judd farmhouse, to Donald and Charlene Shriver (the Shrivers). The Shrivers subsequently assigned the right to George and Virginia Byrum (the Byrums), who purchased the property.
¶8 Prior to assigning the right to purchase the Judd property to the Shrivers, the Clarks purchased the subdivided Tracts A, F, and H from Al and Joy Goodwin (the Goodwins) in 1984. These tracts were subdivided in the 1960s and the subdivision was recorded in the official records of Madison County on July 14, 1970. The Clarks recorded their deed to these tracts on November 21, 1989. Connected from east to west, respectively, Tracts A, F, and H are located in the northern half of Section 33 and attach to the northern boarder of Parcel A and run to the Jefferson River. The Clarks later built their current home on Tract A and have resided there since 1991. They did not build a home on Parcel A as originally planned.
¶9 Larry and Marlene Dwyer (the Dwyers) purchased certain real property in Section 33 and recorded a warranty deed on August 28, 1971. At the time the complaint was filed, the Dwyer land was owned in undivided one-half interests by the Dwyer Family Trust and the heirs and devisees of Mr. Dwyer. However, by a transfer recorded on September 27, 2004, John Joseph Dwyer became the owner of the Dwyer property.
¶10 The Dwyer property is a semi-triangular tract of land with the hypotenuse adjoining the eastern side of the railroad in Section 33. As such, the Dwyer property and Parcel A border each other with the railroad acting as a visible property line. The Dwyer property is bordered on the east by a county road named ‘Waterloo Road” and on the north by a roadway known as “Byrum Lane.” Byrum Lane extends from Waterloo Road, across the Dwyer property, and across the northern border of the Clarks’ Parcel A, which lies between the Dwyer and Byrum properties, before continuing onto the Byrums’ property lying to the southwest of the Clarks’ Parcel A. In essence, Byrum Lane dissects Parcel A from the Clarks’ northern adjoining Tracts A, F, and H.
¶11 The Byrums utilize Byrum Lane by virtue of two recorded easements in their favor. The portion of Byrum Lane crossing the Clarks’ Parcel A is a recorded sixty-foot wide roadway and utility easement. The portion of Byrum Lane traveling from Waterloo Road over the Dwyer property is a road and utility easement executed by Larry Dwyer on September 15, 1998, and recorded in favor of the Byrums on September 16, 1998. The recorded easement is described as
[a] 30 foot wide roadway easement located in the N1/2SE1/4 of Section 33, Township 1 South, Range 5 West, P.M.M., said easement being 30 feet southerly of and parallel with the following described line: Beginning at the East ¼ comer of said Section 33, thence S89°40°59”W 883.85 feet more or less on the east-west mid section line of said Section 33 to the southeasterly boundary line of the right of way of the Burlington Northern Railroad as said railway is located in and surveyed across the mid section line of said Section 33; said mid section line being the north boundary of the herein described easement.
This portion of Byrum Lane crosses the Dwyer property from Waterloo Road for a distance of approximately 834 feet before reaching the Clarks’ property.
¶12 Historically, Byrum Lane was used by the Clarks and their predecessors to access what has been referred to as the “Judd” and “Goodwin” tracts which the Clarks purchased. During the period of 1979 to 1986 when the Clarks lived in the old Judd farmhouse, Byrum Lane served as the Clarks’ “sole access to [their] property” and residence. From the period of 1986 to 1991 the Clarks used Byrum Lane to access their properties to feed livestock, load hay, and move equipment, and in 1988 the Clarks began constructing their home on Tract A, taking up residence there in 1991. Since then they have continuously used Byrum Lane to access Parcel A and Tracts A, F, and H, although they also have access to their house by way of a roadway from Waterloo Road. As such, the Clarks claim a prescriptive easement along the portion of Byrum Lane legally described above, allowing them access over the Dwyer property to their Parcel A and Tracts A, F, and H. Accordingly, the Clarks filed an action seeking declaration of a private prescriptive right-of-way easement on the recorded access easement owned by the Byrums and crossing the Dwyer property.
¶13 Following a two-day bench trial, the District Court entered findings of fact that included:
18. The disputed road in question has been used by the public and Clarks’ predecessors in interest since, at least, the early 1900s, and has served several residences since that time.
19. The county road department has maintained the road on occasion.
20. That the disputed road was generally knows [sic] as a public road and no permission was asked for or granted to use the road.
21. That the public had a right to use the road and used the road long before defendants Dwyers purchased the property.
22. During the time defendants Dwyers has [sic] owned the property surrounding the disputed road, the public, including plaintiffs, did not seek defendants Dwyers’ permission to use the road, and defendants Dwyers’ contention that said use was permissive is unsupported by the record. Dwyers never formally gave anyone permission to use the roads.
23. Plaintiffs, the public, and their predecessors in interest have used the road for access to their property located in Section 33. The past use of the road has included access for: A. Livestock purposes; B. Irrigation purposes; C. Hauling livestock supplies; D. Farming purposes; E. Residential purposes; F. Subdivision purposes; G. Repairing fence; H. Cutting and hauling firewood; I. Spraying weeds; J. Movement of equipment; K. Hunting; L. Fishing/river access;M. Burning brush; N. Fire control; O. Private roadway crossing at railroad tracks.
23. [sic] That defendants Dwyers failed to establish any persuasive evidence that the use of the road was permissive.
24. All owners of the road were put on notice in the 1960s that the road was intended to service residences when the subdivision of the property into various tracts took place.
33. While defendant Dwyer has concerns about additional burdens on the easement, there is no evidence that there is any additional burden planned or that additional subdivisions of the property, beyond that done in the 1960s, is going to take place. The property was subdivided and of record prior to defendants Dwyers’ purchase of the property. They can not [sic] now claim surprise.
¶ 14 The court concluded as a matter of law that the Clarks established the elements of a prescriptive easement, to wit: open, notorious, exclusive, adverse, continuous, and uninterrupted use of the roadway for at least five years. The District Court issued judgment granting the Clarks a prescriptive easement of the portion of Byrum Lane crossing the Dwyer property. The judgment determined the scope of the prescriptive easement as including residential, agricultural and recreational uses. The court also held that the easement extended to and ran with all subdivided parcels of land owned by the Clarks-specifically Parcel A, Tract A, Tract F, and Tract H.
¶15 The Dwyers and Byrums submitted post-judgment motions pursuant to M. R. Civ. P. 59(g) and 52(a) seeking to¡ (1) set aside the District Court’s “public use” findings of fact; and (2) alter or amend the findings of fact, conclusions of law, and judgment entered by the court insofar as they provide for subdivision or residential access to tracts owned by the Clarks that have never had residences. The District Court denied the motions. The Dwyers and the Byrums appeal.
STANDARD OF REVIEW
¶16 A district court’s findings of fact are reviewed to determine whether they are clearly erroneous. Leichtfuss v. Dabney, 2005 MT 271, ¶ 20, 329 Mont. 129, ¶ 20, 122 P.3d 1220, ¶ 20. A finding is clearly erroneous if it is not supported by substantial evidence, if the district court has misapprehended the effect of evidence, or if a review of the record leaves this Court with the definite and firm conviction that a mistake has been committed. Leichtfuss, ¶ 20. A district court’s conclusions of law are reviewed to determine whether they are correct. Leichtfuss, ¶ 21.
DISCUSSION
¶17 1. Did the District Court err by entering findings of fact related to “public use” of the disputed roadway?
¶18 The Byrums and Dwyers argue the District Court’s “public use” findings of fact are irrelevant and immaterial to this proceeding, pursuant to M. R. Evid. 401 and 402, and should be set aside. The Byrums and Dwyers contend that this is not a public easement case, and furthermore, the District Court refused to let the Clarks amend their pleadings at trial to make a public easement claim. Moreover, the Byrums and Dwyers assert that there is nothing in the District Court’s conclusions of law explaining or justifying the “public use” findings. The Byrums and Dwyers do not allege any harm or prejudice, but nevertheless they request that this Court set aside any and all findings of fact by the District Court that use the word “public” or “public use.”
¶19 The Clarks respond that the District Court’s limited inclusion of findings of fact pertaining to public use of the roadway is supported by substantial clear and convincing evidence and is relevant to the historical use of the roadway.
¶20 The District Court included the following six findings of fact in its order relevant to this issue:
18. The disputed road in question has been used by the public and Clarks’ predecessors in interest since, at least, the early 1900s ....
19. The county road department has maintained the road on occasion.
20. That the disputed road was generally knows [sic] as a public road and no permission was asked for or granted to use the road.
21. That the public had a right to use the road and used the road long before defendants Dwyers purchased the property.
22. During the time defendants Dwyers has [sic] owned the property surrounding the disputed road, the public, including plaintiffs, did not seek defendants Dwyers’ permission to use the road, and defendants Dwyers’ contention that said use was permissive is unsupported by the record.
23. Plaintiffs, the public, and their predecessors in interest have used the road for access to their property located in Section 33.
21 The District Court did not address public access in its conclusions of law and judgment, and we conclude there was no harm in referencing evidence of historic public use of the road over which the private easement was at issue. While reflecting evidence offered in the trial, the public use findings served only to give credibility to the Clarks’ private claim and had no other legal effect. Thus, we hold that the District Court did not err by entering findings of fact related to public use.
¶22 2. Did the District Court err in declaring a private prescriptive roadway easement for “subdivision or residential access” to tracts created by subdivision in the 1960s?
¶23 The Byrums and Dwyers argue that the District Court’s order should be reversed insofar as it provides for subdivision or residential access to tracts owned by the Clarks that never have had residences. The Byrunas and Dwyers contend it is undisputed that the subdivided tracts have never contained residences, with the exception of Tract A where the Clarks have resided since 1991, and the District Court’s findings of fact and conclusions of law “should be reversed insofar as they provide for subdivision or residential access to tracts owned by the Clarks that have never had residences on them.”
¶24 The Clarks respond that substantial clear and convincing evidence was admitted at trial to support the District Court’s order and judgment allowing the Clarks to use the roadway for subdivision and residential purposes as they have been since 1979 when they lived in the old Judd farmhouse. The Clarks assert that the residential use made of Byrum Lane by them, their predecessors and successors, begins at and is physically connected to the 884-foot section of roadway at issue in this case, and that the Court cannot ignore the prior subdivision of the property or the road’s historical use for residential purposes.
¶25 To establish a private prescriptive easement, a party must show open, notorious, exclusive, adverse, continuous and uninterrupted use of the easement claimed for the full statutory period of five years. Swandal Ranch Co. v. Hunt, 276 Mont. 229, 233, 915 P.2d 840, 843 (1996); § 70-19-404, MCA. An open and notorious use is “ ‘a distinct and positive assertion of a right [that is] hostile to the rights of the owner and brought to the attention of the owner.’ ” Brumit v. Lewis, 2002 MT 346, ¶ 15, 313 Mont. 332, ¶ 15, 61 P.3d 138, ¶ 15 (quoting Amerimont, Inc. v. Gannett, 278 Mont. 314, 323, 924 P.2d 1326, 1333 (1996)). “As a general rule, an easement appurtenant attaches to, passes with, and is incident of ownership of the particular land to which it is appurtenant.” Leichtfuss, ¶ 37. “[S]uch an easement ‘runs with the land,’ which means that the benefit or burden passes automatically to successors.” Leichtfuss, ¶ 37.
¶26 Once established, the owners of a prescriptive easement are limited to the use and frequency of use that was established during the prescriptive period. Kelly v. Wallace, 1998 MT 307, ¶ 31, 292 Mont. 129, ¶ 31, 972 P.2d 1117, ¶ 31. “It is settled law in Montana that in acquiring a prescriptive easement, ‘the right of the owner of the dominant estate is governed by the character and extent of the use during the period requisite to acquire it.’” Warnack v. Coneen Family Trust, 266 Mont. 203, 217-18, 879 P.2d 615, 724 (1994) (quoting Marta v. Smith, 191 Mont. 179, 183, 622 P.2d 1011, 1013 (1981)).
¶27 Section 70-17-106, MCA, provides that: “[t]he extent of a servitude is determined by the terms of the grant or the nature of the enjoyment by which it was acquired.” If the easement is not specifically defined, “ ‘it need only be such as is reasonably necessary and convenient for the purpose for which it was created.’ ”Leffingwell Ranch, Inc. v. Cieri, 276 Mont. 421, 430, 916 P.2d 751, 757 (1996) (quoting Strahan v. Bush, 237 Mont. 265, 268, 773 P.2d 718, 720 (1989)).
¶28 The District Court determined that the elements of a prescriptive easement were established by clear and convincing evidence, and that is not an issue on appeal. With regard to “the nature and scope of uses falling within the established prescriptive easement,” the court determined that the “evidence is uncontroverted that the subdivision of Plaintiffs’ land establishing parcels labeled Tract A, Tract F, and Tract H took place in the mid-1960’s” and that “[s]uch subdivision demonstrates development intended for these tracts.” It notes that the Dwyers knew the property was subdivided and that the road was used to service those tracts prior to their purchase of the property. The District Court determined that the roadway historically has been used for residential and agricultural access, not only to the Clarks’ property, but also to the former Judd, Goodwin, and Walks tracts adjacent to the easement, and that the testimony established that no additional subdivision was planned. The court concluded that “during the 5-year statutory period, the scope of the use of the roadway includes residential use and that the roadway has been used for residential purposes benefiting the Clarks’ property.”
¶29 The Byrums and Dwyers rely on Leffingwell for their arguments against subdivision access. In Leffingwell, a subdivider sought to use an old ranch access road for subdivision access. The district court held that the access provided by easements granted over the road for ranch access was limited to the agricultural use intended when the easements were created by deeds, and an expansion of use “would constitute an overburdening” of the easements. Leffingwell, 276 Mont. at 430, 916 P.2d at 756. We agreed and further noted that the evidence, which included gates on the road, “did not contemplate substantial traffic or intend that the easements could be enlarged.” Leffingwell, 276 Mont. at 431, 916 P.2d at 757. We held that “ ‘[n]o use may be made of the right-of-way different from the use established at the time of the creation of the easement so as to burden the servient estate to a greater extent than was contemplated at the time the easement was created.’ ” Leffingwell, 276 Mont. at 431, 916 P.2d at 757 (quoting Lindley v. Maggert, 198 Mont. 197, 199, 645 P.2d 430, 432 (1982)).
¶30 Here, at the time the prescriptive easement was created by the Clarks’ use, the Clarks owned all of their tracts of land and accessed them by way of the road. Because the easement attaches to the dominant tenement, which includes the Clarks’ property acquired from the Judds in 1979 and from the Goodwins in 1984, the easement is attached to each of the parcels. Prior to the time the prescriptive easement came into being, these parcels were subdivided, which the District Court concluded had put all owners on notice that the road was intended to service residences. The Dwyers and Byrums argue that this finding is undercut by the fact that the Clarks had alternative access to their properties, but we cannot disagree with the District Court that the subdivision of the land into parcels made the residential purpose of the road more obvious. Further, the Clarks lived in a residence on the old Judd property and used Bynun Lane for eight years to access their home, the old Judd farmhouse, before later building a residence on Tract A. Mrs. Judd testified, in reference to the Judds’ old property (now comprising the Clarks’ Parcel A and the Byrum property), that “[the road has] been used for a hundred years” to access “[a]ll those properties.” Unlike Leffingwell, approving a residential purpose of this easement would not expand its original purpose. The road in question has historically been used to service Tracts A, F, and H, as well as the Byrums’ property, since the 1960s. Further, the Clarks testified during trial that they had no plans to further subdivide the land. In allowing for “subdivision” access to these tracts of land, the court did not expand the scope of the prescriptive easement beyond what was contemplated at the time of its creation.
¶31 Therefore, the right to use the easement for subdivision or residential access extends to each parcel in question and runs with the land. We conclude that the District Court did not err in determining the scope of the prescriptive easement herein.
¶32 3. Should the Clarks be awarded costs and damages for having to defend this appeal?
¶33 The Clarks argue that they are entitled to recover their costs on appeal pursuant to M. R. App. P. 33, and to recover damages for this appeal pursuant to M. R. App. P. 32, since the appeal was taken without substantial or reasonable grounds and is without merit.
¶34 “As a general rule, this Court will not impose sanctions pursuant to Rule 32, M.R.App.P., unless the appeal is entirely unfounded and intended to cause delay or unless counsel's actions otherwise constitute an abuse of the judicial system.” Collins v. Collins, 2004 MT 365, ¶ 34, 324 Mont. 500, ¶ 34, 104 P.3d 1059, ¶ 34.
¶35 In this case, we hold the appeal was based on substantial and reasonable grounds and not intended to cause delay. Accordingly, we decline to award the Clarks attorney fees and costs for responding to this appeal.
¶36 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES COTTER, LEAPHART and MORRIS concur.
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JUSTICE NELSON
delivered the Opinion of the Court.
¶1 The Montana Society of Anesthesiologists and Michael Sterbis, M.D. (collectively, “MSA”) brought this action in the District Court for the First Judicial District, Lewis and Clark County, seeking to invalidate the amendments to Admin. R. M. 8.32.303 (Rule 303) made by the Board of Nursing (the BON) relating to the practice of Certified Registered Nurse Anesthetists (CRNAs) in Montana. The District Court denied MSA’s Motion for Summary Judgment in the matter and MSA appealed. We affirm.
¶2 MSA raises the following issues on appeal:
¶3 1. Whether the District Court erred in concluding that the Legislature has authorized CRNAs to administer anesthesia to patients without physician supervision.
¶4 2. Whether administrative rules adopted by the BON which purport to allow CRNAs to administer anesthesia to patients without physician supervision comply with the Montana Constitution and the Montana Administrative Procedure Act (MAPA).
FACTUAL AND PROCEDURAL BACKGROUND
¶5 Montana law recognizes four specialty areas of nursing collectively called advanced practice registered nurses (APRNs). Section 37-8-202(2)(b), MCA. These four specialty areas of nursing include CRNAs, nurse practitioners, nurse-midwives and clinical nurse specialists. To practice in any of these four specialties requires that the individual complete additional professional education beyond the basic nursing degree required of a registered nurse and become certified in that particular specialty. For example, to practice as a CRNA, the individual must (1) have a minimum of a Bachelor of Science degree in nursing or other appropriate baccalaureate degree; (2) be licensed as a registered nurse; (3) have a minimum of one year of experience in an acute care nursing setting; and (4) graduate from an accredited nurse anesthesia program at least two years in length. In addition, the individual must pass a national certification exam following graduation and complete a continuing education and recertification program every two years thereafter.
¶6 CRNAs have been the sole providers of anesthesia services in many areas of Montana, particularly in rural areas of the State, for several years. Only nine out of the forty medical facilities in Montana have an anesthesiologist on staff. CRNAs provide anesthesia services at the remaining 31 medical facilities in Montana. Of the nine facilities where an anesthesiologist is on staff, six facilities also use the services of CRNAs.
¶7 For many years, Medicare/Medicaid rules required that CRNAs must work under the general supervision of a physician when they administer anesthesia in order to obtain reimbursement for CRNA services from Medicare/Medicaid. In 2001, the Code of Federal Regulations was amended to allow the governor of each state to “opt out” of the physician supervision requirement for Medicare/Medicaid purposes if: (1) state law so allows; (2) they obtain the advice of their boards of nursing and medicine; and (3) they make a finding that opting out would be in the best interests of their state. 42 CFR § 482.52.
¶8 On September 6, 2002, Montana Governor Judy Martz requested that the BON and the Board of Medical Examiners (the BME) study the matter. Each board appointed a subcommittee of three of its members to respond to the Governor’s request. A joint meeting of the two subcommittees was held on November 16, 2002. Following that meeting, the committee members recommended to their respective boards that Montana opt out of the federal physician supervision requirement for CRNAs. The BON held a meeting on December 2, 2002, at which its members voted to recommend to the Governor that Montana exercise the opt-out provision. The BME held a similar meeting on December 6, 2002, and the members of the BME also voted to recommend to the Governor that Montana exercise the opt-out provision.
¶9 On January 22, 2004, the Governor notified Medicare/Medicaid that, after consulting with the BON, the BME, and “other interested and affected parties,” opting out was consistent with state law and in the best interests of the citizens of Montana. Consequently, the Governor requested that Montana be exempted from the requirement that CRNAs be supervised by a physician in order to receive Medicare/Medicaid reimbursement for anesthesiology services performed by CRNAs.
¶10 Prior to the Governor’s decision to opt out, the BON had taken action to amend Rule 303 concerning CRNA practice. On June 3, 2002, the BON issued a Notice of Public Hearing containing proposed amendments to Rule 303. On October 10, 2002, the BON met and adopted the amendments with a few minor changes. In its Notice of Amendment, the BON declared that it had the authority to define the scope of practice of its licensees. The amended rule was certified to the Secretary of State on November 18, 2002.
¶11 Rule 303 was amended as follows:
8.32.303 NURSE ANESTHETIST PRACTICE (1) Nurse anesthetist practice is the independent and/or collaborative performance of or the assistance in any act involving the determination, preparation, administration or monitoring of any drug used in the administration of anesthesia or related services for surgical and other therapeutic procedures which require the presence of persons educated in the administration of anesthetics.
(2) A nurse anesthetist is authorized to perform procedures delineated in the American Association of Nurse Anesthetists Guidelines for Nurse Anesthesia Practice. Copies of the guidelines may be obtained from the American Association of Nurse Anesthetists, 216 Higgitts-RoadyParkRidge, Illinois-60068;-(708-) 692-7050 www.aana.com. [Underlined language added and lined through language omitted.]
¶12 MSA filed its Complaint for Declaratory and Injunctive Relief on December 4,2002, arguing that state law does not allow unsupervised delivery of anesthesia by CRNAs. MSA sought relief under the Montana Constitution and MAPA for violation of the notice and participation requirements for public meetings. MSA’s claim was not grounded upon any set of facts relating to acts or omissions of CRNAs in general or any CRNA in particular.
¶13 In its Amended Complaint filed May 20, 2003, MSA alleged: (Count I) the BON violated Montana’s open meeting laws by failing to provide sufficient notice of its meetings and by failing to allow the public to participate in the rulemaking process; (Count II) the BON did not have the authority to adopt the amendments to Rule 303 and thereby enlarge the scope of practice of CRNAs; and (Count III) the BON violated MAPA because it failed to provide a statement of reasonable necessity and because it attempted to adopt by reference certain guidelines for nurse anesthesia practice derived from the American Association of Nurse Anesthetists’s webpage when that webpage does not actually contain the guidelines nor any link to them. Hence, MSA sought declaratory and injunctive relief finding that the BON’s opt-out recommendation to the Governor is invalid because the BON violated Montana’s open meeting and public participation laws; that the BON has no statutory authority to administratively modify the scope of practice of nursing; and that the Rule 303 amendments are void and unenforceable because the BON violated MAPA in seeking to enact them.
¶14 On July 18, 2003, MSA filed its Application for Preliminary Injunction requesting that the District Court compel the BON to show cause why it should not be preliminarily enjoined pursuant to the allegations of the Amended Complaint. The court so ordered and scheduled a hearing for September 25, 2003.
¶15 The Montana Association of Nurse Anesthetists (MANA) moved to intervene in the case as an additional defendant on August 13,2003. The District Court granted the Motion to Intervene over MSA’s objection. Thereafter, MANA moved to vacate the show cause hearing set for September 25,2003, and the court reset the hearing for October 20, 2003.
¶16 On September 10, 2003, MSA filed a Motion for Summary Judgment on Counts II and III of its Amended Complaint. Both the BON and MANA responded. MANA also cross-moved for partial summary judgment arguing that it was entitled to summary judgment as a matter of law because: (1) the BON has the authority to define the scope of practice of nursing, including that of CRNAs; (2) the administration of anesthesia by a CRNA constitutes the practice of nursing and does not constitute the practice of medicine; (3) the BON’s amendments to Rule 303 clarify the scope of practice of CRNAs and do not re-define it; and (4) the Legislature has specifically declined to require CRNAs to be supervised by physicians in their practice. The hearing on the show cause order commenced on October 20,2003, with the parties arguing the summary judgment motions at the end of the hearing.
¶17 In a Memorandum and Order entered January 16, 2004, the District Court concluded that Montana law does not require physician supervision of CRNAs, thus, the court granted MANA’s Cross-Motion for Partial Summary Judgment on that issue. Moreover, because the issue of physician supervision was the underpinning of Counts II and III of MSA’s Amended Complaint, the court denied MSA’s Motion for Summary Judgment on those claims. In addition, although the court determined that the BON did not have the authority to expand or even define the scope of practice of CRNAs, the court concluded that, in actuality, the Rule 303 amendments did not expand their scope of practice. Consequently, the court denied MSA’s application for a preliminary injunction because it failed to show that the Rule 303 amendments expanded the scope of practice of CRNAs.
¶18 MSA subsequently requested that Count I of its Amended Complaint be dismissed and the court complied. MSA then appealed the District Court’s denial of its Motion for Summary Judgment on Counts II and III of its Amended Complaint to this Court.
¶19 MANA filed a Motion to Dismiss this appeal contending that MSA did not appeal from a final judgment and that MSA “specifically and intentionally attempted to limit their appeal” to a review of the District Court’s denial of MSA’s Motion for Summary Judgment. We denied MANA’s Motion to Dismiss on the basis that both MSA and MANA agreed that upon the District Court’s grant of MSA’s Motion to Dismiss Count I of its Amended Complaint, MSA’s case was fully adjudicated and that no causes of action remained before the District Court. MANA filed a Motion of Entry of Judgment to that effect and the District Court entered Judgment for MANA. In denying MANA’s Motion to Dismiss, we stated that “MSA is clearly appealing from a final judgment” ... “a judgment to which MSA and MANA both agreed.”
STANDARD OF REVIEW
¶20 Summary judgment is proper only when no genuine issues of material fact exist and the moving party is entitled to judgment as a matter of law. Watkins Trust v. Lacosta, 2004 MT 144, ¶ 16, 321 Mont. 432, ¶ 16, 92 P.3d 620, ¶ 16 (citing M. R. Civ. P. 56(c)). Our standard in reviewing a district court's summary judgment ruling is de novo. Watkins Trust, ¶ 16 (citing Johnson v. Barrett, 1999 MT 176, ¶ 9, 295 Mont. 254, ¶ 9, 983 P.2d 925, ¶ 9; Stutzman v. Safeco Ins. Co. of America, 284 Mont. 372, 376, 945 P.2d 32, 34 (1997)). We use the same M. R. Civ. P. 56 criteria applied by the district court. Watkins Trust, ¶ 16 (citing Johnson, ¶ 9). Moreover, all reasonable inferences which may be drawn from the offered proof must be drawn in favor of the party opposing summary judgment. Watkins Trust, ¶ 16 (citing Johnson, ¶ 8; Schmidt v. Washington Contractors Group, 1998 MT 194, ¶ 7, 290 Mont. 276, ¶ 7, 964 P.2d 34, ¶ 7). If there is any doubt regarding the propriety of the summary judgment motion, it should be denied. 360 Ranch Corp. v. R & D Holding, 278 Mont. 487, 491, 926 P.2d 260, 262 (1996) (citing Whitehawk v. Clark, 238 Mont. 14, 18, 776 P.2d 484, 486-87 (1989)).
DISCUSSION
¶21 MANA argues on appeal that MSA’s claims are moot because granting the relief requested by MSA would be a meaningless exercise since the Rule 303 amendments did not create any new rights for CRNAs, but merely clarified the prior rule and the longstanding and existing practice in Montana. Both the Montana Medical Association (MMA), an association of physicians practicing in Montana, and the Montana Health Care Association (MHA), an association of hospitals and health care providers in Montana, have filed briefs as amici curiae in this case. In its amicus brief, MHA also claims that because the Governor has already requested that Montana be exempted from the Medicare/Medicaid requirement that CRNAs be supervised by a physician, MSA’s request to invalidate the amendments to Rule 303 is moot since invalidating those amendments cannot result in physician supervision of CRNAs as a prerequisite to Medicare/Medicaid reimbursement. Thus, MHA contends that this suit has lost all practical purpose and no longer presents an actual controversy.
¶22 Mootness is a threshold issue which must be resolved before addressing the underlying dispute. Grabow v. Montana High School Ass’n, 2000 MT 159, ¶ 14, 300 Mont. 227, ¶ 14, 3 P.3d 650, ¶ 14 (citing Shamrock Motors, Inc. v. Ford Motor Co., 1999 MT 21, ¶ 17, 293 Mont. 188, ¶ 17, 974 P.2d 1150, ¶ 17). This Court has consistently held that “a moot question is one which existed once but because of an event or happening, it has ceased to exist and no longer presents an actual controversy.” Skinner v. Lewis and Clark, 1999 MT 106, ¶ 12, 294 Mont. 310, ¶ 12, 980 P.2d 1049, ¶ 12 (quoting State ex rel. Miller v. Murray, 183 Mont. 499, 503, 600 P.2d 1174, 1176 (1979)). Moreover, a case will become moot for the purposes of an appeal “where by a change of circumstances prior to the appellate decision the case has lost any practical purpose for the parties, for instance where the grievance that gave rise to the case has been eliminated....” Matter of T.J.F., 229 Mont. 473, 475, 747 P.2d 1356, 1357 (1987) (quoting 5 Am. Jur. 2d Appeal and Error § 762 (1962)).
¶23 Contrary to MANA’s and MHA’s contentions in this case, even though the question of whether Montana should opt out of the Medicare/Medicaid requirement that CRNAs be supervised by a physician may no longer be at issue, not all patients are Medicare/Medicaid patients. Consequently, this case has not lost all practical purpose for the parties and the questions of whether CRNAs are authorized by Montana law to administer anesthesia without physician supervision and whether the BON has the authority to redefine the scope of practice of CRNAs, still present an actual controversy.
¶24 Furthermore, under the Medicare/Medicaid regulations, the Governor may only opt out if each of three conditions are met, one of which is that the opt out complies with state law. Thus, if this Court determines that Montana statutes do not allow CRNAs to practice independently, one of the conditions underlying the opt out fails.
Issue 1.
¶25 Whether the District Court erred in concluding that the Legislature has authorized CRNAs to administer anesthesia to patients without physician supervision.
¶26 MSA contends on appeal that the District Court erred in denying its Motion for Summary Judgment because the Legislature has not authorized CRNAs to administer anesthesia to patients without physician supervision. MSA asserts that administering anesthesia is “clearly a form of medical ‘diagnosis’ and ‘treatment’ ” and nurses, including CRNAs, may not engage in diagnosis and treatment pursuant to the Medical Practice Act (Title 37, Chapter 3 of the Montana Code Annotated). However, MSA has failed to set forth any provision in Montana law requiring CRNAs to be supervised by a physician. Instead, MSA relies on numerous Attorney General opinions to support its position, none of which are on point.
¶27 In addition, the MMA argues in its amicus brief that the level of supervision anticipated does not involve the surgeon instructing the CRNA on just how anesthesia should be administered as the surgeon does not exercise control over the “means and method” used by CRNAs in administering anesthesia. Rather, according to the MMA, the supervision involves the responsibility of the physician to ensure that the proper decisions regarding patient care are made in the operating room; that the CRNA is competent, qualified and mentally alert; and that the CRNA keeps the surgeon informed of any changes the CRNA may detect in the patient’s status. However, it could be argued that a surgeon would require the exact same things from an anesthesiologist.
¶28 Under § 37-3-102, MCA, a person may not practice medicine unless that person possesses a license to practice medicine or is exempt from the licensing requirements. To that end, § 37-3-102(8), MCA, defining the practice of medicine, provides:
“Practice of medicine” means the diagnosis, treatment, or correction of or the attempt to or the holding of oneself out as being able to diagnose, treat, or correct human conditions, ailments, diseases, injuries, or infirmities, whether physical or mental, by any means, methods, devices, or instrumentalities. If a person who does not possess a license to practice medicine in this state under this chapter and who is not exempt from the licensing requirements of this chapter performs acts constituting the practice of medicine, the person is practicing medicine in violation of this chapter.
However, § 37-3-103(1)(i), MCA, provides that the Medical Practice Act does not apply to “the rendering of nursing services by registered or other nurses in the lawful discharge of their duties as nurses ... under the conditions and limitations defined by law.”
¶29 The “conditions and limitations defined by law” referred to in § 37-3-103(1)(i), MCA, are set forth in the Nurse Practice Act (Title 37, Chapter 8 of the Montana Code Annotated). And, the section of the Nurse Practice Act that refers to CRNAs provides, in pertinent part, as follows:
Advanced practice registered nursing - when professional nurse may practice. (1) A person licensed under this chapter who holds a certificate in a field of advanced practice registered nursing may practice in the specified field of advanced practice registered nursing upon approval by the board of an amendment to the person's license granting a certificate in a field of advanced practice registered nursing. The board shall grant a certificate in a field of advanced practice registered nursing to a person who submits written verification of certification by a board-approved national certifying body appropriate to the specific field of advanced practice registered nursing and who meets any other qualification requirements that the board prescribes.
Section 37-8-409, MCA (emphasis added).
¶30 Consequently, pursuantto the provisions of §§ 37-3-102(8) and 37-3-103(1)(i), MCA, nurses are exempt from the Medical Practice Act as long as they render nursing services in the lawful discharge of their duties as nurses under the conditions and limitations defined by the Nurse Practice Act. And, more specifically, under § 37-8-409, MCA, of the Nurse Practice Act, CRNAs may practice in their specified field (anesthesia) as long as they meet the licensing and qualification requirements for a CRNA.
¶31 The Montana Legislature authorized nurse anesthetist practice in 1981 when it reestablished the Board of Nursing and generally revised the laws relating to licensure of nurses. Sec. 7, Ch. 248, L. 1981. The Legislature did not see fit at that time to require that CRNAs be supervised by a physician, nor has the Legislature ever required that CRNAs be supervised by a physician. The only supervision requirement in § 37-8-409, MCA, is found at subsection (4) and pertains to individuals granted temporary approval to practice as a CRNA while they await the results of their national certification examination. Section 37-8-409(4), MCA. Had the Legislature intended that all CRNAs be supervised by a licensed physician, it could easily have required so.
¶32 And, in fact, in such instances where the Legislature intended to require supervision, it has done so expressly. For example, § 37-3-104, MCA, specifically requires that a medical assistant be supervised by a physician or a podiatrist and that the physician or podiatrist may be held responsible for any acts of or omissions by medical assistants acting in the ordinary course and scope of their assigned duties. Similarly, § 37-8-102(7)(a), MCA (2005), requires that practical nursing services must be “performed under the supervision of a registered nurse or a physician, dentist, osteopath, or podiatrist authorized by state law to prescribe medications and treatments.” Section 37-20-301(1)(a), MCA, specifically requires that a physician assistant be supervised by a physician licensed in this state. Moreover, § 37-20-403, MCA, provides that a physician assistant is an agent of the physician and the duties of the physician assistant are delegated by the physician. No similar laws establish a supervisory or agency relationship between a CRNA and a physician.
¶33 Moreover, the Legislature has specifically rejected attempts to bring CRNAs within the ambit of § 37-3-102, MCA. During the 2003 legislative session, Representative Daniel Fuchs introduced House Bill No. 590 (HB 590). This bill was entitled “An Act Providing for Supervision of a Certified Registered Nurse Anesthetist in the Administration of Anesthesia.” Section 1 of HB 590 specifically required:
Administration of anesthesia by a certified registered nurse anesthetist in relation to a surgical procedure must be under the supervision of: (1) an anesthesiologist who is immediately available if needed; (2) a medical practitioner licensed under Title 37, chapter 3, 5 or 6; or (3) a dentist licensed under Title 37, chapter 4.
HB 590 was ultimately withdrawn by its sponsor.
¶34 Also during the 2003 legislative session, MSA attempted to amend Senate Bill No. 331 (SB 331) (“An Act Generally Revising the Laws Applying to the Practice of Nursing ....”) to include a supervision requirement. Both proponents and opponents of SB 331 testified before a full hearing of the House Human Services Committee. Following the receipt of various public comments and communications, the committee voted 13 to 0 to reject the amendments. The committee chair, Representative Bill Thomas, wrote a letter to the Governor regarding the proposed amendment wherein he stated:
As a result of a lengthy hearing, the prominent message was evident; physician supervision of CRNAs is not in the best interest of Montana. The committee emphasized that message by unanimously opposing the amendment requiring supervision.
¶35 In short, the Legislature, the governmental body MSA argues should make any scope of practice decisions, declined the opportunity to impose on CRNAs the supervision requirements MSA has requested that this Court create. See Continental Oil Co. v. Board of Labor Appeals, 178 Mont. 143, 153-54, 582 P.2d 1236, 1242-43 (1978) (noting that although the 1977 Montana Legislature had an opportunity to amend Montana’s unemployment compensation statutes to delete the phrase “stoppage of work” and insert in its place the word “strike,” the Legislature declined to do so. This, the Court stated, was supportive of the view that the Legislature did not consider the phrase “stoppage of work” to be synonymous with the word “strike.”); Berry v. KRTV Communications, Inc., 262 Mont. 415, 428, 865 P.2d 1104, 1113 (1993) (Larson, D.J., sitting for Nelson, J., specially concurring) (noting that although the Legislature had ample opportunity in the six times it had amended § 39-3-406, MCA, since 1981, to exclude news editors from that statute’s overtime pay provisions, the Legislature declined to do so, and “[t]he only possible conclusion is that the Legislature has specifically decided not to exclude news editors in small cities from coverage by the Montana overtime pay provisions.”).
¶36 We have repeatedly stated that we will not insert language into a statute that was omitted by the drafters. When interpreting statutes, our role “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. “In doing so, we must pursue the intent of the Legislature and that intent is determined by interpreting the plain meaning of the language used.” Saari v. Winter Sports, Inc., 2003 MT 31, ¶ 22, 314 Mont 212, ¶ 22, 64 P.3d 1038, ¶ 22 (citing In re R.L.S., 1999 MT 34, ¶ 8, 293 Mont. 288, ¶ 8, 977 P.2d 967, ¶ 8).
¶37 Furthermore, this Court has routinely stated that the interpretation by administrative boards over statutes under their respective domains should be given deference. Montana Power Co. v. Public Service Com’n, 2001 MT 102, ¶¶ 23-25, 305 Mont. 260, ¶¶ 23-25, 26 P.3d 91, ¶¶ 23-25; Sleath v. West Mont Home Health Services, 2000 MT 381, ¶ 37, 304 Mont. 1, ¶ 37, 16 P.3d 1042, ¶ 37, cert denied by Dow AgroSciences LLC v. Sleath, 534 U.S. 814, 122 S. Ct. 40 (2001); Dept. of Revenue v. Kaiser Cement Corp., 245 Mont. 502, 507, 803 P.2d 1061, 1064 (1990). In this case, not only has the BON, the administrative board regulating the practice of CRNAs, declared that physician supervision is not required for CRNAs, but the BME, the regulatory board responsible for proscribing the unlicensed practice of medicine, concluded that physician supervision of CRNAs is not required because nurse anesthetist practice is not the practice of medicine.
¶38 Accordingly, we hold that the District Court was correct in concluding that the Legislature has authorized CRNAs to administer anesthesia to patients without physician supervision.
Issue 2.
¶39 Whether administrative rules adopted by the BON which purport to allow CRNAs to administer anesthesia to patients without physician supervision comply with the Montana Constitution and MAPA.
¶40 The District Court determined that because the Legislature has not authorized the BON to promulgate rules defining the scope of practice of CRNAs, the BON does not have the authority to pass any rule that may go beyond what is set forth in the statutes. In this case, however, because the court had already determined that Montana law does not require physician supervision of CRNAs, it concluded that the BON’s amendments to Rule 303 did not change or re-define the scope of practice of CRNAs. Hence, the court granted MANA’s Motion for Partial Summary Judgment and denied MSA’s Motion for Summary Judgment.
¶41 MSA now contends on appeal that the District Court erred in denying its Motion for Summary Judgment because the BON’s amendments are an “executive usurpation of legislative power by an unelected executive body.” Similarly, the MMA argues in its amicus brief that the BON did not have the authority to adopt an administrative rule allowing CRNAs to practice independently of physician supervision.
¶42 MANA asserts on the other hand that prior to the amendments to Rule 303, the rule did not contain any requirement for physician supervision of CRNAs, thus the amendments to the rule did not redefine the scope of practice of CRNAs, nor did they create any new authorization for CRNAs to administer anesthesia without physician supervision.
¶43 An administrative agency can exercise only those powers specifically conferred on it by the Legislature. Bell v. Dept. of Licensing, 182 Mont. 21, 22, 594 P.2d 331, 332 (1979).
The courts have uniformly held that administrative regulations are out of harmony with legislative guidelines if they: (1) engraft additional and contradictory requirements on the statute; or (2) if they engraft additional, noncontradictory requirements on the statute which were not envisioned by the legislature.
Bell, 182 Mont. at 23, 594 P.2d at 333 (internal citations and quotation marks omitted).
¶44 To that end, § 37-1-131(1), MCA, provides that each board within the Department of Labor and Industry shall set and enforce standards and rules governing the licensing, certification, registration and conduct of the members of the particular profession or occupation within its jurisdiction.
¶45 The “scope of practice” for CRNAs in Montana, as established by the Legislature, is the breadth of the professional practice for which the CRNA is licensed. It entails the administration of anesthesia services by duly qualified and certified professional nurses licensed by the BON in that advanced practice specialty field. The license is the CRNAs authorization to practice in that specialty field and is evidence of the licensee’s competence to do so.
¶46 A CRNA may not practice outside the “scope” of his or her license by, for example, providing nurse midwifery services to patients or by acting as a nurse practitioner. Nor may a CRNA practice medicine by performing surgery on a patient. But a licensed CRNA is authorized under § 37-8-409(1), MCA, to practice in the nurse anesthetist field of advanced practice registered nursing by providing anesthesia services to patients.
¶47 The cases cited in MSA’s brief in support of its position that CRNAs are practicing outside of their scope of practice are not on point. All of these cases are criminal cases wherein the individuals were prosecuted, not for practicing outside the scope of their license, but rather, for practicing without a license or using a title reserved to the holders of a particular license. There are no allegations in this case of any particular CRNA performing any particular practice or procedure outside the scope of what the Legislature has allowed and what the CRNA’s license authorizes them to perform.
¶48 We agree with the District Court that the Legislature has not provided the BON with the authority to re-define or expand the scope of practice established by the CRNA’s enabling legislation. We also agree with the District Court that the BON’s amendments to Rule 303 did not re-define or expand the scope of practice of CRNAs. Instead, amending the statute to include the phrase “administrative and/or collaborative” merely clarified the existing practice of CRNAs in Montana.
¶49 MSA also contends that the BON violated MAPA when it amended Rule 303 because it failed to provide a statement of reasonable necessity as required by § 2-4-305, MCA, and it improperly attempted to adopt by reference the AANA guidelines.
¶50 Section 2-4-305(6)(b), MCA, provides, in pertinent part:
The agency shall also address the reasonableness component of the reasonable necessity requirement by, as indicated in 2-4-302(1) and subsection (1) of this section, stating the principal reasons and the rationale for its intended action and for the particular approach that it takes in complying with the mandate to adopt rules. Subject to the provisions of subsection (8), reasonable necessity must be clearly and thoroughly demonstrated for each adoption, amendment, or repeal of a rule in the agency's notice of proposed rulemaking and in the written and oral data, views, comments, or testimony submitted by the public or the agency and considered by the agency. A statement that merely explains what the rule provides is *not a statement of the reasonable necessity for the rule. [Emphasis added.]
In its June 3, 2002 ‘Notice of Public Hearing on Proposed Amendment,” the BON provided the following reason for amending Rule 303:
REASON: Section 37-8-202, MCA, gives the [BON] the authority to “define the educational requirements and other qualifications applicable to recognition of advanced practice registered nurses.” The rule is implementing the same statute. The [BON] proposed the rule amendment because of a meeting between the [BON] and the [Board of] Pharmacy. The Board of Pharmacy believes that when an anesthetist performs anesthesia, s/he is prescribing an anesthetic. Because the nurse anesthetist is prescribing, the CRNA must have prescriptive privileges for the [BON] to assure the public safety. Prescribing involves choosing the appropriate drug for the individual patient, determining the therapeutic dose, administering the drug, and being alert for complications or adverse reactions while the patient is under the influence of the drug. Additionally, many CRNAs practice in areas other than anesthesia, such as pain control. The current rule for CRNAs makes prescriptive authority optional. Approximately 20% of all CRNAs have prescriptive privileges in Montana. For the last two years, the [BON] encouraged all CRNAs to apply for prescriptive privileges voluntarily. The rule will affect all CRNAs and future CRNAs in Montana. Currently, Montana has 141 CRNAs, and approximately 116 of them will need to apply for prescriptive authority when the rule is adopted. The [BON] will allow a period of nine months for those who do not have prescriptive authority to apply and receive approval.
Nowhere in this statement does the BON refer to the independent practice of CRNAs. Instead, it deals solely with the prescriptive authority or lack thereof of CRNAs.
¶51 The BON readily admits that this statement was defective and thus did not fully comply with § 2-4-305(6)(b), MCA, but the BON argues that since these amendments to Rule 303 were not substantive, compliance with § 2-4-305(6)(b), MCA, was not necessary. The BON states that they believed the substantive change in Rule 303 was the addition of a new subsection requiring CRNAs to have prescriptive authority. Hence, although the BON did indicate in their “Notice of Public Hearing on Proposed Amendment” that the language regarding the independent practice of CRNAs would be added to Rule 303, the statement of reasonable necessity accompanying the proposed amendments to Rule 303 only referred to the reasons for requiring CRNAs to have prescriptive authority.
¶52 MAPA provides: “A rule is not valid unless notice of it is given and it is adopted in substantial compliance with 2-4-302, 2-4-303, or 2-4-306 and this section ...” Section 2-4-305(7), MCA (emphasis added). In In re Rudd’s Estate, 140 Mont. 170, 177, 369 P.2d 526, 530 (1962), this Court stated that “substantial compliance means only that a court should determine whether the statute has been followed sufficiently so as to carry out the intent for which it was adopted.” The intent or purpose of MAPA is “to give notice of governmental action and the opportunity to express one’s opinion regarding that action.” House Joint Resolution No. 2 (adopted by the 49th Legislature of the State of Montana) (March 9, 1985).
¶53 In this case, not only did MSA have notice of the BON’s intent to amend Rule 303, representatives of MSA and MMA were allowed to observe and participate in the amendment process by attending the July 3, 2002 public hearing and by voicing their objections to the amendments to Rule 303. The BON’s “Notice of Amendment” regarding Rule 303, certified to the Secretary of State on November 18, 2002, indicated that the following individuals appeared at the public hearing and voiced their objections to the amendments: Susan Good for MSA, the Montana Neurosurgeons, and the Montana Orthopedic Society; Mona Jamison for MSA; Patrick Melby for MMA; and G. Brian Zins for MMA. Consequently, the intent for which MAPA, and more specifically § 2-4-305(6), MCA, was adopted, was sufficiently carried out in this case.
¶54 In addition, in Count I of its Amended Complaint, MSA argued that the BON violated Montana’s open meeting laws by failing to provide sufficient notice of its meetings wherein the amendments to Rule 303 were to be discussed, and by failing to allow the public to participate in the rulemaking process by attending those meetings. However, after it was shown that MSA did receive notice of the meetings and actually had representatives at the meetings who voiced their objections to the amendments, MSA requested that this Count be dismissed.
¶55 Therefore, although the BON did not fully comply with § 2-4-305(6)(b), MCA, in that it failed to provide a statement of reasonable necessity regarding the addition of the phrase “independent and/or collaborative” to Rule 303, the BON “substantially” complied by putting MSA and the public in general on notice of the Rule 303 amendments and thereby permitted observation of and participation in the amendment process.
¶56 We also are not persuaded by MSA’s argument that the BON violated MAPA because it improperly attempted to adopt by reference the AANA guidelines. The AANA guidelines had been adopted long before the amendments to Rule 303. The amendments merely substituted a website address for a street address. That portion of Rule 303, before and after the amendment, states as follows:
A nurse anesthetist is authorized to perform procedures delineated in the American Association of Nurse Anesthetists Guidelines for Nurse Anesthesia Practice. Copies of the guidelines may be obtained from the American Association of Nurse Anesthetists, 2-1-6 Higgins Road, Park Ridge, Illinois-60068, (708-) 692-7050 www.aana.com. [Underlined language added and lined through language omitted.]
¶57 A plain reading of the language in the Rule that “copies of the guidelines may be obtained from” the AANA does not state that the guidelines are available on the website itself, but that the guidelines can be obtained by contacting the AANA at the website address and requesting a copy of the guidelines.
¶58 Accordingly, we hold that the amendments to Rule 303 did not re-define or expand the scope of practice of CRNAs, nor did they violate MAPA.
¶59 Affirmed.
JUSTICES LEAPHART, WARNER, MORRIS and RICE concur.
Section 37-3-102(6), MCA, defines a “medical assistant” as “an unlicensed allied health care worker who functions under the supervision of a physician or podiatrist in a physician’s or podiatrist’s office and who performs administrative and clinical tasks.”
Section 37-8-102(7)(a), MCA, defines the “practice of practical nursing” as “the performance of services requiring basic knowledge of the biological, physical, behavioral, psychological, and sociological sciences and of nursing procedures.”
Section 37-20-401(3), MCA, defines a “physician assistant” as “a member of a health care team, licensed by the [BME], who provides medical services that may include but are not limited to examination, diagnosis, prescription of medications, and treatment under the supervision of a physician licensed by the [BME].”
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant John William Anderson (Anderson) was arrested for driving under the influence of alcohol (DUI). Anderson was convicted of DUI in the Ninth Judicial District Court, Toole County, then filed a petition seeking reinstatement of his driver’s license, pursuant to § 61-8-403(1), MCA. Anderson asserted that his refusal to submit to a breathalyzer test could not be the basis for the State’s seizure of his driver’s license because the implied consent advisory was read to him incorrectly. The District Court entered an order denying Anderson’s petition. We affirm.
¶2 Did the District Court err in denying Anderson’s petition to reinstate his driver’s license given that Anderson was read the consequences a nonresident motorist would face after refusing a breath test, rather than the consequences Anderson, a Montana resident, would face?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 On April 28, 2005, Anderson was arrested for DUI and transported to the Toole County Safety Facility for processing. Toole County Deputy Sheriff Mark Pattison read Anderson an implied consent advisory before asking Anderson to submit to a breath test. Deputy Pattison instructed Anderson that, in accordance with Montana law, a person operating a motor vehicle in Montana impliedly consents to a breath or blood test for the presence of alcohol or drugs in the person’s body. Deputy Pattison also read to Anderson that a nonresident driver who refused to take the test would have his driving privileges suspended for a minimum of six months. Anderson was further informed that he could contest any action taken against his driver’s license and could obtain an independent test of his breath or blood as well.
¶4 However, despite the fact that Anderson was a Montana resident, he was not read that portion of the implied consent advisory specifically directed to Montana residents. Identical to a nonresident’s refusal, a Montana resident’s refusal to submit to a blood alcohol test also results in a suspension of driving privileges for a minimum of six months. Anderson refused to submit to the breath test after being read the advisory, and his driver’s license was seized.
¶5 On February 17, 2006, Anderson filed a brief in support of his petition to reinstate his driver’s license, arguing that law enforcement’s failure to advise him of the consequences he, as a Montana resident, would face for refusing a breath test rendered his subsequent refusal invalid. On March 9, 2006, the District Court issued its order denying Anderson’s petition, concluding that Anderson presented no evidence that Deputy Pattison’s reference to nonresident drivers confused Anderson regarding the consequences of his own refusal to take the breath test. Anderson appeals the District Court’s denial of his petition.
STANDARD OF REVIEW
¶6 We review a district court’s denial of a petition for reinstatement of a driver’s license to determine whether the court’s findings of fact are clearly erroneous and its conclusions of law are correct. Ellenburg v. Mont. Dept. of Justice, 280 Mont. 268, 270, 929 P.2d 861, 863 (1996).
DISCUSSION
¶7 Did the District Court err in denying Anderson’s petition to reinstate his driver’s license given that Anderson was read the consequences a nonresident motorist would face after refusing a breath test, rather than the consequences Anderson, a Montana resident, would face?
¶8 Pursuant to § 61-8-403(4)(a), MCA, the District Court reviewed Anderson’s petition for reinstatement of his driver’s license to determine whether Anderson refused to submit to a breath test as required by § 61-8-402, MCA. Anderson argues his refusal to submit to the breath test was invalid because, although he was advised that a nonresident would have his or her driver’s license suspended, he was unaware that his own license could also be suspended. In response, the State maintains that the informed consent advisory is meant to inform a person suspected of DUI of the potentially serious consequences of refusal, not necessarily of all the specific ramifications. Accordingly, the State contends that the advisory given to Anderson accomplished that objective without misleading him.
¶9 Under Montana law, a person who operates a motor vehicle on roads of this state is deemed to have consented to a blood or breath test to determine the presence of alcohol or drags in his or her body. Section 61-8-402(1), MCA. If an arrested driver carries a Montana driver’s license and refuses testing, the investigating officer must seize the person’s driver’s license and forward it to the Department of Justice, along with a report stating the basis for the testing request and the fact of refusal. Section 61-8-402(4), MCA. The Department is then authorized to suspend the license for six months if it is that driver’s first refusal, or to revoke the license for one year if it is a second or subsequent refusal. Section 61-8-402(4), MCA. Similarly, the Department is authorized to suspend or revoke nonresident driving privileges in Montana for a minimum of six months by seizing the driver’s license and forwarding it to the licensing authority of the nonresident’s home state, along with a report of the nonresident’s refusal to submit to one or more blood alcohol tests. Section 61-8-402(7), MCA.
¶10 This Court has previously held that persons arrested for DUI need not be made aware of the specific ramifications of refusing to consent to a blood alcohol test. In State v. Simmons, 2000 MT 329, 303 Mont. 60, 15 P.3d 408, we stated:
Montana’s implied consent statutes do not specifically require an officer to provide information to an arrested motorist as to the ramifications of refusal to take the requested test. In fact, a driver is not entitled to be informed that he or she may refuse the test. The purpose of the Implied Consent Advisory is to inform an apparently intoxicated driver of the potentially serious consequences of refusing to submit to a blood alcohol test and of his due process protections such as rights to independent testing and post-testing hearings.
Simmons, ¶ 17 (citations omitted).
¶11 In the District Court, Anderson argued that Deputy Pattison’s error in reading the advisory left him with the impression that refusing the test would not result in his Montana driver’s license being seized or suspended. The District Court found that Anderson presented no evidence indicating that Deputy Pattison’s reference to nonresident drivers confused Anderson, or led him to believe that his driver’s license would not be seized should he do so.
¶12 Anderson now argues that “there is no requirement that he show confusion,” but, rather, that the incorrect advisory language itself constituted error as a matter of law. Anderson maintains that he was never informed of the “potentially serious consequences” of refusing the breath test because he was only told the consequences a nonresident driver would face upon refusing such a test.
¶13 “The purposes of Montana’s implied consent advisory forms are to put an apparently intoxicated driver on notice of the potentially serious consequences of refusing a blood alcohol test, and to alert him to his due process protections germane to independent testing and post-testing hearings.” City of Missoula v. Fergunson, 2001 MT 69, ¶ 11, 305 Mont. 36, ¶ 11, 22 P.3d 198, ¶ 11 (citing Simmons, ¶ 17). Anderson was put “on notice” that refusing to take a blood test has potentially serious consequences. After being advised that a “nonresident driver” would lose his driving privileges for six months if he refused testing, Anderson was notified of his due process rights to obtain independent blood testing. Deputy Pattison also advised Anderson that he could contest any action taken against his driver’s license if he chose not to submit to the requested testing-an obvious indication that there could be consequences if he refused the breath test. Anderson was informed that he had a right to a post-test hearing in court. Anderson was not misled by the State and was sufficiently advised to be on notice of the potentially serious consequences of refusing the test. This situation is not dissimilar to the one we faced in Simmons, wherein we rejected a nonresident’s argument that information read to him regarding the consequences to a resident driver had invalidated the advisory. Simmons, ¶ 18.
¶14 We agree with the District Court that the information provided to Anderson met the requirements of Simmons: Anderson was informed that a refusal to submit to a breath test would have serious consequences, and he was informed of the due process protections available to him. The District Court’s findings are not clearly erroneous and its conclusions of law are correct. We therefore affirm the District Court’s denial of Anderson’s petition for reinstatement of his driver’s license.
¶15 Affirmed.
JUSTICES NELSON, WARNER and MORRIS concur.
|
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellants Bobbie and Ron Peterson (Petersons) appeal from evidentiary orders entered by the Fourth Judicial District Court during the trial of Petersons’ claims under the Montana Unfair Trade Practices Act (MUTPA) against Appellee The Doctors’ Company (TDC) precluding admission of certain letters and correspondence between attorneys in the underlying malpractice case and allowing TDC to admit a disputed death verdict chart. TDC cross-appeals the District Court’s evidentiary orders which precluded its discovery of certain attorney files and excluded evidence of a prior relationship between Petersons and TDC. We affirm in part, reverse in part, and remand for a new trial.
¶2 We consider the following issues on appeal:
¶3 (1) Did the District Court abuse its discretion in excluding as hearsay letters and correspondence written by counsel for the Petersons and received by The Doctors’ Company during settlement negotiations of the Petersons’ malpractice claims?
¶4 (2) Did the District Court abuse its discretion in admitting a minor death verdicts chart?
¶5 (3) Did the District Court abuse its discretion in refusing to allow discovery of the Petersons’ attorneys’ files in the underlying action?
¶6 (4) Did the District Court abuse its discretion in excluding all evidence of the previous relationship between Petersons’ attorneys and The Doctors’ Company?
BACKGROUND
A Complicated Pregnancy
¶7 The Petersons, residents of Anaconda, wanted to have another baby. Bobbie had previously lost a child in útero and was forty-five years old, so the Petersons knew there were risks and no guarantees. Still, desiring a child, the Petersons faced the risks and were delighted when they conceived in the fall of 1996.
¶8 The Petersons documented the pregnancy on videotape, and immersed themselves in newborn fever-shopping for baby clothes and preparing a nursery. They also entrusted their care to Butte Ob-Gyn, Dr. Robert St. John, a Butte physician to whom Bobbie’s primary care physician had referred them. On November 25, 1996, Dr. St. John informed the Petersons that they were not merely having a single child; they were expecting twins.
¶9 Dr. St. John recognized that Bobbie’s twin gestation made the already risky pregnancy even riskier, and he communicated those risks to the Petersons. Unfortunately, precautions could not prevent a low-lying placenta, and a suspected total previa, which St. John diagnosed in January 1997. Further, an ultrasound performed in February 1997 revealed that one of the twin boys had a cyst on his chest. Located near the twin’s heart, the cyst was not only life threatening for the boy, but also added a further risk to Bobbie’s pregnancy. As a result of the cyst and the other complications, Dr. St. John referred the Petersons to a physician in Salt Lake City, and arranged to have the babies delivered there so that specialists could perform surgery on the imperiled twin immediately after birth.
¶10 Bobbie continued regular appointments with Dr. St. John, including a single appointment with St. John’s associate, Dr. Jamieson, throughout March and April of 1997. She appeared stable and in relatively good condition at an appointment with Dr. St. John on May 7, 1997. However, at that appointment, given the inherent risks of Bobbie’s pregnancy, Dr. St. John asked to see Bobbie again in two weeks, wanting her to return within a day of May 21, 1997. Unexplainably, however, Dr. St. John’s staff scheduled Bobbie’s next appointment for May 27, almost three weeks later.
¶11 Over the next couple weeks, Bobbie’s condition changed. As expected, her abdomen was very large, but her feet and legs became severely swollen, she was plagued with a chronic cough, experienced frequent nausea and vomiting, and was in significant discomfort. On May 24, days after Dr. St. John had originally wanted to see her, Bobbie experienced shortness of breath which caused her to call Dr. Jamieson, who was on call for Dr. St. John, then on vacation. Dr. Jamieson had once examined Bobbie and had been briefed about Bobbie by Dr. St. John before his departure. Despite Bobbie’s known risks, her current symptoms and panicked demeanor, Dr. Jamieson did not believe Bobbie’s condition warranted immediate attention that night. Instead, he merely gave Bobbie the option of going to the hospital if she desired to do so. She stayed at home.
¶12 Bobbie awoke to extreme discomfort on May 27. Though she had an appointment scheduled for 4:15 p.m. that day, she called Dr. St. John’s office that morning, and requested to be seen earlier. However, her request to reschedule was not accommodated. She thus waited, arriving at Dr. St. John’s office at 4:15 p.m., in what Dr. St. John later described as a serious condition. As noted by Dr. St. John at his deposition:
She was in moderate to severe preeclampsia. She was in early premature labor. She was markedly uncomfortable. She was short of breath, dizzy. At that point, she had gone into an extreme high-risk state for both she and her babies.
¶13 Upon Bobbie’s arrival, Dr. St. John immediately performed an ultrasound in his office, though he did not allow the Petersons to tape or watch the procedure as had been their custom. The results seemed unclear. While Dr. St. John asserted at his deposition that at least one of the twins was alive at the time of the office ultrasound, he also blamed poor equipment and a failure of one of the nurses for the lack of information gleaned from the procedure:
The nurse’s efforts to try to get the fetal tracing could have interfered with her care of Bobbie, but she didn’t do it long enough to make a difference.
The ultrasound machine at the hospital was donated and was not adequate for doing an ultrasound on a lady with twins who was in trouble.
¶14 After completing the ultrasound and evaluating Bobbie’s condition, Dr. St. John ordered Bobbie immediately admitted to St. James Hospital. Thereafter, he contacted the Salt Lake City facility to coordinate Bobbie’s transfer. Records indicate that the transport team arrived in Butte at 10:10 p.m., after which Bobbie and Ron were transported to Salt Lake City. At the time of their departure, the Petersons believed that both of their babies were still alive.
¶15 After a difficult ride, during which Bobbie lost consciousness at least once, the Petersons, haggard and tired, arrived in Salt Lake City. A post-arrival ultrasound confirmed devastating news: the twin boys who would have been the Petersons’ fourth and fifth children, had tragically died. Autopsies revealed death by fetal hypoxia stress. The autopsies further revealed that one twin had died approximately two to three days previous, while the other had died approximately one day earlier. At death, both twins were estimated to be thirty-seven weeks of gestational age.
The Malpractice Claim
¶16 Pursuant to § 27-6-701, MCA, the Petersons filed a malpractice claim before the Montana Medical Legal Panel (MMLP) on April 16, 1999, alleging that Drs. St. John and Jamieson had mismanaged Bobbie’s pre-natal care and had caused the death of the twin boys through negligent acts. At the panel proceedings, as well as during subsequent legal proceedings, the doctors were represented by their malpractice carrier, TDC.
¶ 17 Almost immediately after initiating the representation, TDC hired Dr. Thomas Benedetti (Benedetti), a board-certified Ob-Gyn and perinatologist from the University of Washington Medical Center, to review the case and to opine on the care provided by Drs. St. John and Jamieson. According to a TDC Claim Evaluation Report, Dr. Benedetti “was highly critical of the care rendered by Dr. St. John.” In fact, Dr. Benedetti seriously questioned Dr. St. John’s lack of antepartum testing and fetal monitoring, his decision to transfer Bobbie to Salt Lake City without confirmation of a living fetus, and his failure to admit Bobbie to the hospital earlier. According to TDC records, Dr. Benedetti noted that “I really feel bad being so critical of somebody practicing in small towns but some of this is just basic stuff.”
¶18 The MMLP proceedings concluded on July 22, 1999.
The Settlement Negotiations
¶19 Shortly after the MMLP rendered its decision, Petersons’ attorney, Craig Daue, notified TDC of the Petersons’ desire to settle the case. The notification was by letter dated August 12, 1999. Thereafter, on August 25, 1999, Daue wrote a second letter to TDC, offering to settle the case for $350,000. The offer of $350,000 was the first offer made by either side. Aside from the dollar amount, the letter detailed Daue’s theory of the case and estimated the Petersons’ personal damages as well as the present value of the twin boys’ lifetime earnings.
¶20 TDC attorney John Maynard received Daue’s letter of August 25, 1999, on August 27, 1999, and discussed its contents with a TDC claims adjuster. Thereafter, in an internal memo dated September 29, 1999, the adjuster reviewed the facts of the case, and noted that (1) the Petersons had offered to settle for $350,000, (2) Dr. Benedetti was not supportive of Dr. St. John’s care of Bobbie Peterson, and (3) Dr. St. John was interested in settling to protect Dr. Jamieson. Subsequently, the TDC adjuster prepared a Claim Evaluation Report on October 22, 1999, which noted that:
Thomas J. Benedetti, M.D., a board-certified OB-GYN and perinatologist practicing at the University of Washington Medical Center in Seattle, WA, reviewed the records in this matter and was highly critical of the care rendered by Dr. St. John.
(Emphasis added.) The adjuster also stated that:
This is a case that carries some liability exposure, and our best and possibly only defense will be with regards to causation.
Despite identifying Dr. Benedetti’s critical opinion and but one viable defense, the report characterized the doctors’ liability as “Remote” on TDC’s in-house Doctor Risk Assessment Trigger, or “DRAT” code. The report estimated the Petersons’ damages to be $150,000.
¶21 TDC offered to settle with the Petersons for $25,000 on November 11, 1999, the settlement communicated vis-á-vis a letter written by a claims adjuster. As a basis for the counter-offer, the adjuster stated:
This offer is, in part, based on our position that Mrs. Peterson substantially contributed to any alleged loss of chance of survival of the fetuses through her decision not to be seen in the emergency department the evening of May 24, 1997.... I do not know how persuasive your client will be when testifying “mother to mother” as to her reasons for choosing not to be seen in the emergency department.
Aside from casting blame on Bobbie Peterson, the letter was also emphatic regarding the final settlement amount, noting that any prelitigation settlement would not approach the Petersons’ first offer of $350,000-“I can assure you that any amount offered prior to litigation will not reach the six-figure range.”
¶22 The Petersons rejected TDC’s $25,000 offer, and filed suit in the District Court on January 19, 2000. Thereafter, the parties prepared for statutorily mandated mediation. See § 27-6-606(3), MCA. As part of their preparation, TDC arranged for review of the case by a second expert, Dr. Van Kirke Nelson. This expert was also critical of the care provided by Dr. St. John. In a memo written by claims adjuster Barbara Simmons and addressed to TDC counsel John Maynard, Simmons summarized Dr. Nelson’s review as follows:
[H]e feels Dr. St. John’s care is inexcusable-The nurses refute St. John’s statements that he couldn’t get a good visualization of the twins because the ultrasound equipment at the hospital was inferior-St. John could and should have done more-Further, St. John knew but did not tell the parents that their babies were died [sic] but had an obligation to do so. [Dr. Nelson] is unable to support St. John.
Simmons upgraded the DRAT Code from Remote Liability to Liability six days before Dr. Nelson’s critical review.
¶23 Although the parties were initially unable to agree on a settlement, the case remained in the mediation process throughout the fall of 2000. The Petersons created a settlement brochure and letter which they sent to TDC on or around November 11, 2000. This package (1) outlined the Petersons’ theory of the case, citing admissions and statements from various depositions regarding the doctors’ liability, (2) outlined the damages suffered by the Petersons, and (3) responded to potential defenses. Further, based on the information in the brochure, the Petersons withdrew their $350,000 settlement offer, their counsel stating as follows:
We had expected the proof of causation to be difficult. However, Dr. St. John’s testimony that this sad outcome could “absolutely” have been prevented with timely medical attention eliminates any credible causation defense by retained experts.
We have always recognized that this case has strong jury appeal. What we feared were technical defenses to the standard of care and causation elements, especially causation. Those concerns are now effectively eliminated through the most effective proof possible, the admissions of the defendants. To the extent that I may have done a disservice to my clients by failing to anticipate how well their case would come together, I will not attempt to hide that mistake by advising that they now accept less than full value for their case.... We will be prepared to make the first offer at the mediation.
¶24 Notwithstanding the evidence and arguments set forth in the settlement brochure, the December 15, 2000, mediation did not result in a settlement. The Petersons were unwilling to accept TDC’s final offer of $80,000, when they sought in excess of $400,000. Thereafter, Barbara Simmons prepared an updated Claim Evaluation Report on January 8, 2001. The report, vis-á-vis the DRAT Code, indicated Simmons’ belief that both doctors were liable. Furthermore, the report indicated that both Simmons and defense counsel estimated that there was an 80 percent chance of a plaintiff verdict if the case went to trial. TDC, however, did not increase its settlement offer, and litigation continued for another year. During that year, Bobbie Peterson attempted suicide and child pornography charges were levied against Dr. Jamieson.
¶25 The parties participated in a second mediation on January 17, 2002, approximately two months before trial was set to begin. During this mediation, held about two and one-half years after the Petersons initially requested a settlement, the parties settled for $375,000. As part of the settlement, the Petersons expressly reserved the right to bring a third party MUTPA action against TDC.
The MUTPA Action
¶26 The Petersons filed the present action against TDC on May 20, 2002, wherein they alleged that TDC violated MUTPA by (1) failing to undertake a prompt and thorough investigation, (2) failing to attempt to effectuate a fair settlement after liability became reasonably clear, and (3) failing to conduct themselves in good faith. Specifically, the Petersons alleged that TDC knew or should have known that Drs. St. John and Jamieson were negligent and liable for the death of the Petersons’ twin boys, yet refused to settle for a fair amount.
¶27 TDC answered the complaint on August 6, 2002, asserting nine affirmative defenses, including that the Petersons did not want to settle and they and their attorneys had created delays which had hindered settlement, that Petersons’ attorneys had not provided necessary damage information, and that TDC had relied on the advice of counsel, precluding liability under the MUTPA.
¶28 At trial, the Petersons gave notice that they intended to admit as evidence their settlement demand letters and brochures to refute TDC’s defense that the Petersons did not want to settle and did not give TDC information demonstrating their damages. TDC objected on hearsay grounds. In response, the Petersons asserted that the letters and settlement brochures were admissible under § 26-1-103, MCA, known as the transaction rule. The court, however, rejected this basis for admission of the documents, sustaining TDC’s objection. As a result, during the trial, defense witnesses and counsel made statements suggesting that the Petersons did not want or try to settle and further, argued to the jury that the Petersons did not give specific information regarding certain damages. For instance, TDC’s Vice President of Claims testified that:
Yes, I mean, I think if the plaintiffs attorney wants to settle a case, they have the burden of proof to prove to us that they’ve got the damages, and it’s their obligation to provide us with the information, and the only information we can get pre-litigation ... would be from them.
In its closing argument, TDC argued that:
The Plaintiffs wouldn’t negotiate. [TDC] offered eighty thousand dollars. The Plaintiffs walked out of the mediation.
Barbara Simmons called up, and said she wanted to negotiate. She gave them an open door. They wouldn’t negotiate.
Plaintiffs had a different agenda. They were not-obviously, not interested in settlement.
¶29 The District Court also ruled that the Petersons’ attorneys’ files from the underlying malpractice action were after-acquired evidence and not discoverable, and excluded evidence regarding the past relationship between counsel for the Petersons and counsel for TDC. Finally, the court admitted a minor death verdicts chart offered by TDC to illustrate its use of this verdict information in the process of negotiating the claim.
¶30 The jury returned a verdict in favor of TDC, indicating on the special verdict form that TDC did not violate the MUTPA because it did not “(A) misrepresent pertinent facts relating to coverages at issue; (B) [r]efuse to pay the Petersons’ claim without conducting a reasonable investigation based upon all available information; [and] (C) [n]eglect to attempt in good faith to make prompt, fair, and equitable settlements of the Petersons’ claim if liability had become reasonably clear.” The Petersons appeal, and TDC cross-appeals, from the District Court’s evidentiary rulings.
STANDARD OF REVIEW
¶31 “A district court has broad discretion in determining whether evidence is relevant and admissible....” Glacier Tennis Club v. Treweek Construction Co., 2004 MT 70, ¶ 47, 320 Mont. 351, ¶ 47, 87 P.3d 431, ¶ 47. Accordingly, we review a district court’s evidentiary rulings for abuse of discretion. Glacier Tennis Club, ¶ 47; see also Payne v. Knutson, 2004 MT 271, ¶ 20, 323 Mont. 165, ¶ 20, 99 P.3d 200, ¶ 20. “A district court abuses its discretion when it acts arbitrarily without employment of conscientious judgment or exceeds the bounds of reason, resulting in substantial injustice.” State v. Riggs, 2005 MT 124, ¶ 18, 327 Mont. 196, ¶ 18, 113 P.3d 281, ¶ 18; see also Citizen Advocates For a Livable Missoula v. City Council, 2006 MT 47, ¶ 18, 331 Mont. 269, ¶ 18, 130 P.3d 1259, ¶ 18.
DISCUSSION
1. Did the District Court err in excluding as hearsay letters and correspondence written by counsel for the Petersons and received by The Doctors’ Company during settlement negotiations of the Petersons’ malpractice claims?
¶32 The Petersons claimed that TDC violated §33-18-201, MCA, by (1) not considering all available information before attempting settlement, and (2) not effecting a good faith settlement after liability became reasonably clear. In pursuit of those claims, the Petersons offered the settlement letters and brochures dated August 12, 1999, August 26, 1999, and November 11, 2000, to show that TDC knew that the Petersons had wanted to settle their claim, that TDC possessed the Petersons’ detailed settlement demands and theory of the case, from at least November 11, 2000, and that liability was reasonably clear long before the final settlement. The District Court, however, sustained TDC’s hearsay objection to this evidence, rejecting the Petersons’ argument that the letters and brochures were admissible under § 26-1-103, MCA. We conclude that the District Court abused its discretion in not admitting these letters.
¶33 Included within Petersons’ suit was the assertion that TDC had violated § 33-18-201(4), MCA, which prohibits a refusal to pay claims without conducting a “reasonable investigation based upon all available information," and § 33-18-201(6), MCA, which prohibits neglecting to attempt in good faith to effectuate a prompt, fair and equitable settlement of a claim “in which liability has become reasonably clear." Both of these claims thus test the propriety of the actions taken or not taken by the insurer in light of the information possessed by the insurer at the time it adjusted the underlying claim.
¶34 The Petersons’ letters and brochure, offered to establish that TDC possessed these documents when it adjusted the Petersons’ claim, were not, within this MUTPA trial, “testimonial” evidence subject to a hearsay objection in the absence of the author. Within a MUTPA trial, these documents intrinsically speak for themselves, and thus, upon a foundation that the documents were, in fact, within TDC’s possession when adjusting the Petersons’ claim, an issue apparently not contested here, the documents were admissible. Of course, the parties are free to dispute the truthfulness of the statements made within the documents or the significance of the documents-TDC would be free to attempt to dismiss them as inaccurate, inadequate or inconsequential-but it cannot block, on hearsay grounds, the admission of documents it held when adjusting the underlying claim. The failure to admit the documents was an abuse of discretion.
¶35 Having concluded that the documents were admissible in a MUTPA trial and that TDC’s hearsay objection was ineffectual, we need not take up Petersons’ argument that the documents were admissible pursuant to the transaction rule. Further, we conclude that this error, which prevented the Petersons from establishing the full extent of the information possessed by TDC at the time it adjusted their claim, and from answering defenses raised by TDC, was prejudicial to the Petersons, requiring reversal and a remand for a new trial.
2. Did the District Court err in admitting a minor death verdicts chart?
¶36 On numerous occasions during the MUTPA trial, TDC made reference to and presented to the jury Exhibit J-2, a chart summarizing child death verdicts in Montana and referred to by the parties as the “Montana Law Week Minor Death Verdicts Chart” (Verdicts Chart). One of TDC’s primary arguments within the trial was that Montana juries have not generally ruled in favor of plaintiffs who seek damages for the death of their children, and that this information was of consequence to TDC’s settlement posture. That information was illustrated on the Verdicts Chart. Over the objection of Petersons, the District Court admitted the chart as a demonstrative exhibit, but excluded evidence about the underlying cases from which the verdict information was drawn. On appeal, the Petersons argue that the Verdicts Chart is irrelevant, prejudicial, and inadmissible hearsay. TDC counters that the information presented in the exhibit represents an important tool utilized by both adjusters and lawyers in settlement negotiations, and therefore, argues that the chart was highly relevant evidence for a MUTPA trial.
¶37 TDC presented the Verdicts Chart to assist juror understanding of the malpractice settlement procedures and values it utilized in adjusting the Petersons’ claim. TDC used the past minor death verdicts and awards in calculating its settlement offers; indeed, the more defense verdicts it uncovered, the more unwilling it was to settle for the Petersons’ desired price. Accordingly, it was relevant as a demonstration of the information used by TDC when adjusting Petersons’ claim, which could tend to prove that TDC negotiated with the Petersons in good faith.
¶38 Relevant evidence is generally admissible. State v. Vandersloot, 2003 MT 179, ¶ 16, 316 Mont. 405, ¶ 16, 73 P.3d 174, ¶ 16; see also M. R. Evid. 402. However, the Petersons argue that the Verdicts Chart, if relevant, was nevertheless so prejudicial as to make it inadmissible. M. R. Evid. 403 provides:
Although relevant, evidence may be excluded if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence.
¶39 Evidence was offered at the trial to demonstrate that knowledge of past verdicts and settlements is critical to an insurer when evaluating malpractice claims, and that such information provides a basis on which to generate settlement offers and counteroffers. The information contained in the Verdicts Chart simply reflected what past juries have decided in child death cases. While potentially helpful to TDC and thus prejudicial to Petersons’ claims, it was a truthful representation of the information used in the process at issue, and we cannot conclude that either the information or the manner it was presented within the Verdicts Chart was so prejudicial as to substantially outweigh the exhibit’s probative value. Ultimately, this MUTPA action was not about the amount of the settlement which TDC paid to the Petersons, but, rather, about the process used by TDC before entering the settlement. The District Court limited somewhat the use of the verdict information and gave the Petersons ample opportunity to cross-examine witnesses and challenge the exhibit on its veracity and the comparability of its contents to the present case. We conclude that the admission of the chart was not an abuse of discretion by the District Court.
3. Did the District Court err in refusing to allow discovery of the Petersons’ attorneys’files?
¶40 TDC moved to compel production of Petersons’ attorneys’ files from the underlying malpractice case against the doctors. The District Court struggled with the motion, originally granting the request, but ultimately, upon Petersons’ request for rehearing, denying the motion. In the end, the court found the information contained in the Petersons’ attorneys’ files irrelevant to the question of whether TDC negotiated in good faith pursuant to MUTPA.
¶41 In its cross-appeal, as it did in the District Court, TDC argues that much of the information contained in the Petersons’ attorneys’ files was highly relevant to its defense of the MUTPA action. Specifically, TDC argues that information about how the Petersons’ valued their own case is relevant to whether TDC complied with MUTPA, and that the Petersons’ file may contain information regarding Petersons’ delay or an unwillingness to settle. The Petersons argue that their attorneys’ files are irrelevant to the question of whether TDC negotiated in good faith, since that question is based on what TDC knew at the time it adjusted the claim.
¶42 M. R. Civ. P. 26(b)(1) provides:
Parties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party.... It is not ground for objection that the information sought will be inadmissible at the trial if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.
Thus, when deciding whether to allow discovery, the question is whether the sought-after files could reasonably lead to discovery of admissible evidence. Here, the District Court ruled that the Petersons’ attorneys’ files from the underlying action were irrelevant in the pending MUTPA matter and were therefore undiscoverable.
¶43 The essence of a cl aim under § 33-18-201, MCA, is that an insurer, given information available to it, has acted unreasonably in adjusting a claim, perhaps by failing to investigate, failing to communicate or failing to negotiate in good faith. Section 33-18-201, MCA, seeks to protect parties from such acts, and the relevant issue is almost universally how the insurer acted given the information available to it. See EOTT Energy Operating Ltd. Partnership v. Certain Underwriters at Lloyd’s of London, 59 F.Supp.2d 1072, 1075-76 (D. Mont. 1999); Twin City Fire Ins. Co. v. Burke, 63 P.3d 282, 286-87 (Ariz. 2003). In most cases, the conduct of the claimant or how the claimant evaluated its own case is simply irrelevant. In a MUTPA case, the claimant’s attorney’s file from the underlying claim is generally undiscoverable under M. R. Civ. P. 26(b).
¶44 Despite this general rule, however, this Court has previously noted that a claimant’s conduct in the underlying matter can be relevant for purposes of a later MUTPA case, if the claimant acts in such a way which delays or impairs the ability of the insurer to settle. See Spadaro v. Midland Claims, Inc., 227 Mont. 445, 450-51, 740 P.2d 1105, 1108-09 (1987); Juedeman v. National Farmers Union Prop., 253 Mont. 278, 281-82, 833 P.2d 191, 193 (1992), overruled on other grounds, Shilhanek v. D-2 Trucking, 2003 MT 122, ¶ 32, 315 Mont. 519, ¶ 32, 70 P.3d 721, ¶ 32. Where such actions by the claimant are proven, the insurer may defeat the claimant’s claims under § 33-18-201, MCA. Spadaro, 227 Mont. at 450-51, 740 P.2d at 1108-09; Juedeman, 253 Mont. at 282, 833 P.2d at 193. Accordingly, we cannot conclude that an attorney’s file from an underlying case is per se undiscoverable in a subsequent MUTPA case. Depending upon the claims asserted by the plaintiff, the attorney’s file may contain information reasonably calculated to lead to discoverable evidence about actions of a claimant supporting an insurer’s defense. Such discovery requests by an insurer, however, cannot be “fishing expeditions.” The requests must be narrowly tailored to lead to discoverable information, and the district courts may well need to prohibit discovery requests which are too broad, given the particular claims and defenses of each case.
¶45 Here, Petersons claimed that TDC had failed to act promptly, failed to effectuate a fair settlement and failed to act in good faith. TDC defended by asserting that the Petersons did not want to settle and had failed to provide information on damages in the underlying case, thus delaying and impairing TDC’s ability to settle. As such, TDC argues it was entitled the opportunity to discover such information from the Petersons’ attorneys’ files which would support its defenses to the claims the Petersons had raised.
¶46 The District Court ruled that Petersons’ attorneys’ files were per se irrelevant and undiscoverable, which we conclude was an overbroad basis on which to deny the request, in light of our foregoing discussion. However, we further conclude that TDC’s discovery requests were not narrowly tailored to lead to discoverable information. Rather, TDC sought
all of the files, records and documents of any sort, including time, expense, and billings [sic] records maintained by your attorney Craig Daue, his law firm, partners and associates relating to your representation in connection with your underlying claims against Robert St. John and Andrew Jamieson, together with the files of all investigators, consultants or experts retained by your attorneys relating to those claims.
TDC also requested “all of [Petersons’] files, records and documents of any sort relating to or referring to the occurrence in question, the injuries and damages allegedly flowing from the occurrence, or to your claims against Defendant.” Clearly, TDC’s requests were not limited in scope and tailored to its defenses to Petersons’ claims, such as a request for those documents created during the period of settlement negotiations it believed Petersons had engaged in delay tactics. The information sought was far broader than that necessary to discover information regarding Petersons’ alleged delay and impairment of TDC’s ability to settle.
¶47 The District Court had broad discretion with regard to discovery matters in this case. We cannot say that it abused its discretion by denying TDC’s overly broad requests for all of Petersons’ and their attorneys’ files in the underlying action. Accordingly, we affirm.
4. Did the District Court err in excluding all evidence of the previous relationship between Petersons’ attorneys and The Doctors’ Company?
¶48 In support of its defenses, TDC sought to introduce evidence of Petersons’ attorneys’ relationship and role, in recent past, with TDC. Petersons’ attorneys had previously been employed by TDC and represented the insurer in medical malpractice litigation. In answer to Petersons’ claim that its settlement offers to the Petersons were unfair and “lowball,” TDC sought to introduce recommendations made by Petersons’ counsel in similar cases when they were employed by TDC. Further, in support of TDC’s assertion that Petersons and their attorneys were responsible for the delay in settlement, TDC sought to introduce evidence that Daue’s recent departure from TDC had left TDC’s other counsel in a time bind. Finally, TDC sought to demonstrate that its relationship with Petersons’ attorneys affected the manner in which they negotiated on Petersons’ claims.
¶49 The District Court concluded that this evidence was both irrelevant and highly prejudicial, and prohibited TDC from introducing evidence of these past relationships, reasoning that:
Mention of Craig Daue’s or Douglas Buxbaum’s prior representations and communications with other Insureds are irrelevant and further it is highly prejudicial to the Plaintiffs, Bobbie and Ron Peterson. Mr. Bob Phillips is being called as an expert for the Defendants in this case to cover what the defense intends to bring out in this request. It has the appearance of being an attack on the credibility of Mr. Daue and the Court will not allow it.
¶50 Although we agree with TDC that some of the evidence about these past relationships may have been relevant to the extent that it may have explained how TDC formulated its negotiation strategy and why TDC acted in certain ways, we agree with the District Court that any probative value of this evidence was substantially outweighed by the danger of unfair prejudice to the Petersons. Further, the District Court afforded TDC a limited opportunity to explain how knowing Petersons’ counsel affected TDC’s settlement strategy. As stated by the court:
Mr. Maynard [counsel for TDC] can explain his friendship with Mr. Daue [counsel for the Petersons] and his knowledge of Mr. Daue in forming his strategy of “step offers.” However, there will be no mention of prior representation of Mr. Daue or his firm [at] The Doctors’ Company.
Given that opportunity and the significant potential for prejudice, we conclude that the District Court did not abuse its discretion in substantially precluding the introduction of this evidence in the trial, and this cross-appeal issue is affirmed.
CONCLUSION
¶51 Issues two, three and four are affirmed. On the basis of our resolution of Issue one, this matter is reversed and remanded for proceedings consistent with this opinion.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, NELSON, COTTER and MORRIS concur.
TDC created the DRAT program in 1994 as a means of identifying physicians who were causing a substantial share of TDC’s losses. TDC’s claims adjusters were to opine on physician liability, quantifying their opinion with a number ranging from 1 to 7. According to the DRAT Code, “1” stands for “No Liability,” “2” stands for “Remote Liability,” “3” for “Questionable Liability,” “4” for “Undetermined,” “5” for “Possible Liability,” “6” for “Probable Liability,” and “7” for “Liability.”
According to a TDC memo concerning the DRAT Code:
In essence, you’re making a judgment on a scale of 1 to 7 indicating from lowest to highest what you think is the degree of liability. Number 4 is the midpoint which would be used in all cases where we have not made any determination. When in doubt, we should start with using the number 4 for a mid-code. In order to pick a code above or below the midpoint, a review should have been done. There may be a case with obvious facts that makes it possible for us to determine in-house, without any outside reviews, that liability does or does not exist. An example is a case where the physician operated on the wrong body part-we do not need a review to tell us that this would be a likely case of liability.
Of course, such discovery requests must also comply with the law which protects attorney work product. An attorney’s ordinary work product may be discovered upon a showing that it is relevant and not privileged. M. R. Civ. P. 26(b)(1). An attorney’s opinion work product may be discovered only upon a showing that the attorney’s mental impressions are “directly at issue in the case and the need for the material is compelling.” Palmer by Diacon v. Farmers Ins. Exchange, 261 Mont. 91, 117, 861 P.2d 895, 911 (1993). “To meet the ‘compelling need’ requirement, the party seeking discovery must demonstrate that weighty considerations of public policy and the administration of justice outweigh the need to protect the mental impressions of the opposing party’s attorneys or its representatives.” Palmer by Diacon, 261 Mont. at 117, 861 P.2d at 911. See also Prindel v. Ravalli County, 2006 MT 62, ¶ 63, 331 Mont. 338, ¶ 63, 133 P.3d 165, ¶ 63. The District Court cited “attorney-client and/or work product protections” as a reason for denial of the discovery request.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant Gilbert Bruce Meyers (Meyers) appeals from the judgment of the First Judicial District Court, Broadwater County, convicting him of assault on a child, a felony, in violation of § 45-5-212, MCA, and sentencing him therefor. We affirm in part, reverse in part, and remand.
¶2 The following issues are considered on appeal:
(1) Did Meyers’s trial counsel render ineffective assistance of counsel by failing to object to or seek exclusion of testimony regarding alleged prior bad acts?
(2) Did the District Court impose an illegal sentence by:
a. Restricting Meyers’s ability to reside in Broadwater County?
b. Requiring Meyers to pay restitution “in an amount to remain open” until the victims receive any help they need?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 On August 20, 2005, Meyers repeatedly hit his eight-year-old son, Isaac, with a flip flop sandal. On August 26, 2005, the County Attorney filed an information charging Meyers with assault on a minor and a jury trial ensued. At trial, Meyers’s wife, Victoria Meyers (Victoria), testified to the events of August 20. Victoria, who has five children with Meyers, testified that on the morning of August 20 she heard screaming coming from the boys’ room and, upon investigating, discovered Meyers hitting Isaac with a sandal. Victoria testified that Meyers hit Isaac between twelve and fifteen times. She testified that she told Meyers to stop hitting Isaac, but Meyers insisted that he was “disciplining” their son. Victoria responded by saying that this was not “discipline” but “abuse.” She testified that she told Meyers, “[w]e are not going to live this way anymore” and ordered him to leave the room. After Meyers left the boys’ room, Victoria gathered the children and traveled to the police station. Victoria testified that while in the car she asked the children, “ ‘[d]o you guys want this to stop?’ And all five of the children said, Yeah, Mom, it has to stop. We can’t keep living like this.’ ” Meyers’s trial counsel did not lodge any objections throughout Victoria’s testimony.
¶4 The jury subsequently found Meyers guilty of assault on a minor, and the District Court sentenced him to four years in the Montana Department of Corrections, with all four years suspended upon conditions. Among others, the conditions mandated that Meyers, “if not employed in Broadwater County, shall not reside in Broadwater County, subject to the pending Parenting Plan” and that Meyers would “pay court ordered victim restitution” in an amount to “remain open until all victims have received the help they need.” While the District Court’s sentence and judgment of conviction sets forth the general rationale for these conditions, the pre-sentence investigation report provided detailed support for their imposition. In the report, Victoria stated that her “ ‘kids are afraid to ride there [sic] bikes and sleep in their own beds because they know [Meyers] is around town, somewhere.’ ” She also related that Meyers’s mental and physical abuse over the years made herself and all five children victims of Meyers’s behavior. Victoria offered further testimony at the sentencing hearing. Meyers appeals.
STANDARD OF REVIEW
¶5 “Claims of ineffective assistance of counsel are mixed questions of law and fact for which our review is de novo.” State v. Morgan, 2003 MT 193, ¶ 7, 316 Mont. 509, ¶ 7, 74 P.3d 1047, ¶ 7. When an offender’s sentence does not include one year or more of actual incarceration he or she is statutorily ineligible for sentence review by the Sentence Review Division. In such cases, “we first review the sentence for legality to determine whether it falls within statutory parameters and, if so, we then examine whether the sentencing court abused its discretion in imposing the sentence.” State v. Armstrong, 2006 MT 334, ¶ 8, 335 Mont. 131, ¶ 8, 151 P.3d 46, ¶ 8. “[W]here the issue ... is whether [a] court followed applicable statutory requirements, the question is one of law over which our review is plenary.” State v. Muhammad, 2002 MT 47, ¶ 17, 309 Mont. 1, ¶ 17, 43 P.3d 318, ¶ 17.
DISCUSSION
¶6 1. Did Meyers’s trial counsel render ineffective assistance of counsel by failing to object to or seek exclusion of testimony regarding alleged prior bad acts?
¶7 Meyers argues that his trial counsel’s failure to seek exclusion of and object to Victoria’s testimony constituted ineffective assistance of counsel. Meyers asserts that Victoria’s statements that “we are not going to live this way anymore” and “this has to stop” represented improper evidence of prior bad acts to show action in conformity with character. The State asserts that Victoria’s statements were permissible as evidence of Meyers’s “habit of disciplining his children.” In the alternative, the State argues that even if Victoria’s statements were impermissible as prior bad acts, they were not prejudicial.
¶8 Both the Montana Constitution and the Sixth Amendment of the United States Constitution guarantee an individual the right to effective assistance of counsel. When reviewing claims of ineffective assistance of counsel we have adopted the two-prong test defined in Strickland v. Washington, 466 U.S. 668, 104 S. Ct. 2052 (1984). This test places the burden on the defendant to show that his “counsel’s performance fell short of the range of competence required of attorneys in criminal cases and that his counsel’s deficient performance was prejudicial to his case.” State v. Hendricks, 2003 MT 223, ¶ 6, 317 Mont. 177, ¶ 6, 75 P.3d 1268, ¶ 6. With respect to the first prong, there is a “strong presumption” that trial counsel’s actions are indicative of trial strategy and within the broad scope of reasonable professional conduct. Hendricks, ¶ 7.
¶9 However, before reaching the merits of an ineffective assistance of counsel claim, we must first determine that the allegations are properly before the Court. State v. Dyfort, 2000 MT 338, ¶ 8, 303 Mont. 153, ¶ 8, 15 P.3d 464, ¶ 8. “Only when the record will fully explain why counsel took, or failed to take, action in providing a defense for the accused may this Court review the matter on direct appeal.” State v. White, 2001 MT 149, ¶ 20, 306 Mont. 58, ¶ 20, 30 P.3d 340, ¶ 20 (emphasis added). Conversely, where allegations of ineffective assistance of counsel “cannot be documented from the record,” the claim must be pursued in a petition for post-conviction relief, pursuant to § 46-21-105(2), MCA. Hagen v. State, 1999 MT 8, ¶ 12, 293 Mont. 60, ¶ 12, 973 P.2d 233, ¶ 12.
¶10 Ineffective assistance of counsel claims regarding omissions of trial counsel frequently are ill-suited for direct appeal. While “[f]ailure to object to testimony may be record-based and thus appropriate for direct appeal,... commonly the record does not reflect counsel’s reasons for failing to object.” State v. St. Germain, 2007 MT 28, ¶ 35, 336 Mont. 17, ¶ 35, 153 P.3d 591, ¶ 35 (internal citation omitted). Generally, an ineffective assistance of counsel claim based on an omission indicates that non-record based information explains trial counsel’s decisions, thereby making the claim inappropriate for direct appeal. St. Germain, ¶ 35.
¶11 Here, Meyers alleges that his trial counsel’s failure to submit an order in limine to exclude Victoria’s testimony of alleged prior bad acts and his subsequent failure to object to Victoria’s testimony comprised ineffective assistance of counsel. However, in both instances the record is silent as to “why” Meyers’s trial counsel failed to take these actions. Therefore, Meyers’s complaint rests on non-record based information and is inappropriate for direct appeal. Consequently, we dismiss Meyers’s claim of ineffective assistance of counsel without prejudice to raising the claim in post-conviction relief proceedings. Accordingly, we do not reach the issue of whether the testimony was improper prior bad act testimony or proper testimony regarding Meyers’s habit of discipline.
¶12 2. Did the District Court impose an illegal sentence by:
a. Restricting Meyers’s ability to reside in Broadwater County?
¶13 Meyers complains that the District Court imposed an illegal sentence when it restricted him from residing in Broadwater County unless he was also employed in Broadwater County. Meyers argues that the condition is illegal because it is not reasonably related to the objectives of rehabilitation or the protection of the victim and society. In support of this argument, Meyers likens his residency restriction to the banishment condition addressed to. State v. Muhammad. There, we held that a banishment condition was not reasonably related to the goals of rehabilitation and the protection of the victim and society. Muhammad, ¶ 28.
¶14 The sentencing statutes provide that a sentencing judge may impose reasonable restrictions or conditions on suspended sentences that are “considered necessary for rehabilitation or for the protection of the victim or society.” Section 46-18-20l(4)(o), MCA. Such conditions may include restrictions on the defendant’s freedom of association and freedom of movement. Section 46-18-202(1)(c), (d), MCA. Accordingly, each restriction must be analyzed to determine whether it is reasonably related to the objectives of rehabilitation or protection of the victim and society. We found the condition at issue in Muhammad to be an unreasonable condition. Muhammad, ¶ 28.
¶15 In Muhammad, the defendant entered a plea of guilty subject to a non-binding plea agreement for the offense of sexual intercourse without consent. Muhammad, ¶¶ 7, 9. As a condition to his suspended sentence, Muhammad was barred from residing or working in Cascade County. Muhammad, ¶ 12. The defendant challenged the condition as unreasonable and a violation of his constitutional rights. Muhammad, ¶ 20. While not reaching his constitutional argument, we agreed that the condition was not reasonably related to his rehabilitation or protection of the victim and society. Muhammad, ¶ 29. The record in Muhammad stated “no reasons for the imposition of the condition” but did establish that the district court “had facts before it at the time of sentencing [that] would render the condition unduly severe and punitive to the point of being unrelated to rehabilitation.” Muhammad, ¶ 28. We reasoned that the district court had also “imposed less restrictive means to rehabilitate Muhammad and to protect the victim and society.” Muhammad, ¶ 28. These less restrictive means included requiring that he complete sex offender treatment, refrain from contact with females under the age of eighteen, and not live within two blocks of where children assemble. Muhammad, ¶ 28. Because the condition was broad and there were other less restrictive means of fulfilling the goals of rehabilitating Muhammad and protecting society, we held that the condition was unreasonable and therefore in violation of § 46-18-202(1)(e), MCA (1997).
¶16 Here, although Meyers repeatedly uses the term “banishment condition,” it is clear the condition does not completely “banish” him from Broadwater County. Rather, the condition imposes a residency restriction, which Meyers may be relieved from if he becomes employed in the county. Indeed, even if Meyers is not employed in Broadwater County, he is allowed to be present in the county, so long as the county is not his residence. Further, the District Court made the residency restriction subject to the pending parenting plan, which may well lead to further refinement or possible elimination of the restriction, depending on the development of that plan.
¶17 Most importantly, and in contrast to Muhammad, the presentence investigation report discusses the need to narrow Meyers’s ability to reside in Broadwater County. The victims have expressed fear of Meyers to the point that it has disrupted their participation in every day activities in the community. Victoria reported that Meyers “ “has no reason to be in Townsend’ ” and “she believes the only reason [Meyers] is still living in Townsend is so that he can still have control over their lives, ‘even if it is just through terrorizing [them]....’ ” The need to protect the victims in this case led the court to impose, as a corollary to the residency restriction, a “no contact” condition as well. As such, Meyers may not contact Victoria or any of the children until the pending parenting plan is in place. The record is silent as to lesser restrictive means the court may have used to provide protection to the victims herein.
¶18 Because the residency restriction is designed to protect the victims and yet allow Meyers limited ability to be present in the county, we conclude that the District Court imposed an appropriately tailored condition, and that it satisfies the requirement to be reasonably related to the protection of the victims and society.
¶19 Finally, because we conclude the condition restricting Meyers’s ability to reside in Broadwater County does not constitute an illegal sentence, we thus consider if the District Court abused its discretion by imposing the condition, as this sentence falls within the narrow group of cases subject to our two-tiered review. State v. Herd, 2004 MT 85, ¶¶ 22-23, 320 Mont. 490, ¶¶ 22-23, 87 P.3d 1017, ¶¶ 22-23. The District Court had before it a pre-sentence investigation report and victim testimony indicating that Meyers had continued to attempt to control their lives, if not by physical force, but by “terrorizing [them],” and that the family’s normal life had been disrupted by their fear of his presence. Victoria testified that Meyers had no reason to live in Townsend except to control their lives. The District Court left the door open to changing the condition pursuant to a parenting plan to be adopted within the pending dissolution proceeding. The District Court’s decision is thus supported by substantial evidence and we conclude that the residency restriction was not an abuse of discretion. Consequently, we affirm the District Court.
b. Requiring Meyers to pay restitution “in an amount to remain open” until the victims receive any help they need?
¶20 Last, Meyers asserts that the District Court exceeded its statutory authority when it failed to set the amount of restitution Meyers must pay to the victims. The State concedes that the District Court erred by leaving the amount of restitution “open.”
¶21 “A district court’s authority to impose a sentence is defined and constrained by statute.” State v. Ruiz, 2005 MT 117, ¶ 12, 327 Mont. 109, ¶ 12, 112 P.3d 1001, ¶ 12. Likewise, a sentence is illegal when it is not based on statutory authority. Ruiz, ¶ 12. Pursuant to § 46-18-244, MCA, “[t]he court shall specify the total amount of restitution that the offender shall pay.” The District Court erred by failing to specify the total amount of restitution Meyers must pay to the victims. Accordingly we vacate this condition and remand to the District Court for re-imposition of the restitution requirement.
¶22 Affirmed in part, reversed in part, and remanded to the District Court for further proceedings consistent herewith.
CHIEF JUSTICE GRAY, JUSTICES COTTER, WARNER and MORRIS concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Jack Griffin pled guilty to a charge of felony incest, and was sentenced to thirty years in the Montana State Prison, with fifteen years suspended. Griffin signed a Request to Amend Conditions of Probation Supervision, consenting that his probation could be modified to include participation in the Intensive Supervision Program (ISP). The District Court approved his request and entered an Order Modifying the Conditions of Supervision. He subsequently filed a motion to set aside the District Court’s order, which was denied. He now appeals the District Court’s denial of that motion. We affirm.
¶2 We restate the issue as follows:
¶3 Did the District Court err in denying Griffin’s motion to set aside the order modifying the conditions of his probation?
BACKGROUND
¶4 Defendant Jack Griffin pled guilty to a charge of felony incest for having sexual intercourse with his minor daughter and was convicted on June 26, 1998. The District Court classified Griffin as a Level III sex offender and sentenced him to Montana State Prison for a period of thirty years, with fifteen years suspended. One of the conditions of his sentence stated that “[t]he Defendant shall be under the supervision and control of the Montana Office of Adult Probation and Parole during the entire period of the suspended sentence including at least monthly personal reports to his parole/probation officer. The Defendant shall abide by all the rules and conditions of that office” (emphasis added). This same condition appeared in the pretrial agreement which Griffin himself signed.
¶5 After serving seven and a half years of his sentence, Griffin was released from the custody of Montana State Prison and was placed under the supervision of the Department of Corrections (“the Department”). He wanted to be placed in Billings, though he had no existing ties to the community there. Griffin met with Laura McKee, a probation officer of the Department of Corrections Adult Probation and Parole Bureau in Billings. McKee recommended that Griffin complete ISP when he was released from prison “to assist him in reentering the community.” McKee recommended that Griffin’s conditions of probation supervision be modified to include ISP because he was a Level III sex offender who had “no ties to [the] community and no job or treatment set up.” She found that “[h]e warrants a higher level of supervision than standard probation provides.”
¶6 Griffin signed a formal request to modify the conditions of his probation to include ISP. The Deputy County Attorney then moved the court to modify the conditions of Griffin’s probation as requested, pursuant to § 46-23-1011(4), MCA (2005). Several days later, the District Court approved the motion and entered an order modifying the conditions of Griffin’s supervision. The District Court’s order specifically noted that Griffin agreed to the conditions in writing.
¶7 A day after the District Court’s order was issued, Griffin moved to have the order set aside. His attorney withdrew this motion the following day, upon learning that Griffin had consented to the modification. Later, he spoke with Griffin, and Griffin claimed that his probation officer had coerced him to sign the request for modification. Griffin’s attorney then renewed the motion to set aside the District Court’s order modifying the conditions of Griffin’s probation.
¶8 The District Court denied the renewed motion to set aside, finding that Griffin had consented to the request to modify the conditions. The District Court also found that there was “no evidence from the Defendant that his agreement to the Request for Modification was coerced or the result of duress.” Rather, the District Court found, Griffin himself “indicate[d] that he signed such document so he could be supervised in Billings, Montana.”
¶9 The court concluded that it had the authority to modify the conditions of Griffin’s probation pursuant to § 46-23-1011(4), MCA, which provides “a judge may modify or add any condition of probation or suspension of sentence at any time.” Finally, the District Court concluded, the requirement to complete ISP did not change Griffin’s original conditions of probation, but merely subjected him to greater scrutiny. This appeal ensued.
STANDARD OF REVIEW
¶10 A district court’s decision to grant or deny a post-trial motion is discretionary. State v. Sheehan, 2005 MT 305, ¶ 18, 329 Mont. 417, ¶ 18, 124 P.3d 1119, ¶ 18. We review such rulings in criminal cases for abuse of discretion. Sheehan, ¶ 18. The burden of demonstrating abuse of discretion is on the party seeking reversal of the district court’s ruling. Sheehan, ¶ 18.
DISCUSSION
¶11 Did the District Court err in denying Griffin’s motion to set aside the order modifying the conditions of his probation?
¶12 Griffin argues that the District Court’s order constituted a modification of his sentence, and as such, violated his constitutional rights. Specifically, Griffin claims that the District Court lacked the authority to modify his sentence eight years after it was issued, and that the ISP requirement violates ex post facto principles because it increased his punishment.
¶13 In response, the State argues the District Court’s order simply changed the conditions of Griffin’s supervision on probation. The State maintains the court had the authority to modify the conditions of Griffin’s probation pursuant to § 46-23-1011(4), MCA. Because the court’s order did not change the length, term, or substance of Griffin’s sentence, the State claims that the modification does not implicate constitutional concerns. We agree.
¶14 A. Did the District Court have authority to modify the conditions of Griffin’s probation pursuant to § 46-23-1011(4). MCA?
¶15 Section 46-23-1011(4), MCA, gives judges the authority to “modify or add any condition of probation or suspension of sentence at any time.” At the time Griffin was sentenced, § 46-23-1011(4), MCA (1998), only permitted judges to modify conditions of probation. In 2001, the statute was amended to permit judges to “modify or add” to the conditions of probation. Section 46-23-1011(4), MCA, cmnt (2001). The Legislature specifically intended that the section be applied retroactively to offenders currently in the Department’s custody. Section 46-23-1011(4), MCA, cmnt (2001). Even if the provision had not been made retroactive, under the terms of § 46-23-1011(4), MCA (1998), at the time Griffin was sentenced, the District Court still had the authority to modify the conditions of Griffin’s suspended sentence.
¶16 B. Did the District Court’s order constitute a modification of Griffin’s mmlshment. in violation of the ex post facto, double jeopardy, and due process clauses of the Montana Constitution?
¶17 Not every modification of the conditions of a suspended sentence will implicate ex post facto concerns. The touchstone of the ex post facto analysis in this context is whether an offender’s sentence has been changed in a punitive sense. State v. Mount, 2003 MT 275, ¶ 89, 317 Mont. 481, ¶ 89, 78 P.3d 829, ¶ 89 (adopting the intents-effects test to determine whether laws are punitive or non-punitive). The modification of an offender’s conditions of probation must be distinguished from a modification of an offender’s sentence itself.
¶18 It is conceivable that some applications of § 46-23-1011(4), MCA, may violate ex post facto principles. If, for example, a district court added months or years to a defendant’s sentence under the color of § 46-23-1011(4), MCA, that would clearly violate the constitutional prohibition against ex post facto laws. Mont. Const. art. II, § 31.
¶19 Although the District Court’s order modified the condition of Griffin’s supervision pursuant to § 46-23-1011(4), MCA, it did not modify his punishment. We conclude that the District Court’s order simply clarified the conditions of Griffin’s probation, and did not change his original sentence. As discussed in more detail below, Griffin’s participation in ISP was contemplated by the original conditions of his suspended sentence. Further, the ISP program is not punitive in nature, and reinforces (rather than changes) the original conditions of Griffin’s suspended sentence. Because Griffin’s sentence itself has not been modified, it is unnecessary for us to reach his ex post facto, double jeopardy, and due process claims.
¶20 1. Was ISP contemplated as one of the original conditions of Griffin’s suspended sentence?
¶21 As one of the conditions of his suspended sentence, the District Court ordered Griffin to “abide by all the rules and conditions of [the Department of Corrections].” Section 46-23-1002(3), MCA (1998), provides that the Department may “adopt rules for the conduct of persons placed on parole or probation, except that the department may not make any rule conflicting with conditions of parole imposed by the board or conditions of probation imposed by a court.” As we recognized in Therriault, ISP is a permissible exercise of the Department’s authority under § 46-23-1002(3), MCA, so long as none of the ISP rules conflict with the offender’s court-ordered conditions of probation. State v. Therriault, 2000 MT 286, ¶¶ 46-47, 302 Mont. 189, ¶¶ 46-47, 14 P.3d 444, ¶¶ 46-47.
¶22 At the time of Griffin’s sentencing, ISP was used by the Department as one of the rehabilitation programs for high-risk offenders like Griffin. While the District Court did not specifically require Griffin to complete ISP in its original conditions, it required him to abide by all the rules and conditions of the Department’s probation program. One of the conditions that the Department attached to Griffin’s probation in Billings was the requirement to complete ISP. Thus, we agree with the District Court’s finding that ISP was contemplated as one of the original conditions of Griffin’s suspended sentence.
¶23 2. Does the requirement to successfully complete ISP change Griffin’s original sentence?
¶24 The District Court’s order modifies the conditions of Griffin’s probation by intensifying his level of supervision. However, the requirement to complete ISP is not punitive and does not change the terms of Griffin’s original sentence.
¶25 The Department first developed ISP in Billings in 1987. Since then, it has been available as an alternative to imprisonment for felony offenders requiring a higher level of supervision. The program is open to offenders on inmate status, as well as to those on parole or probation status. The stated purpose of the ISP is to provide “offenders who need a structured environment, counseling, and supervision” with “a specialized form of adult probation . . . using a heightened level of supervision, monitoring devices and close scheduling.” Therriault, ¶¶ 41-42. ISP is a “community-based” program which allows offenders to “live at home [and] hold or seek jobs.” Therriault, ¶¶ 41-42.
¶26 In Therriault, we explicitly rejected the notion that ISP was punitive in nature, and held that participation in the program could not change an offender’s status from probationer to inmate. Therriault, ¶¶ 38-47. We specifically held that the rules and regulations of ISP may not conflict with the terms of a district court’s sentence. Therriault, ¶¶ 46-47. Rather, ISP is merely a “specialized form of adult probation and parole supervision” which places the offender under greater scrutiny, but still requires him to abide by all the original conditions of his probation. Therriault, ¶¶ 41, 47.
¶27 Thus, the Department’s recommendation that Griffin complete ISP does not change the terms of his original sentence. To the contrary, the District Court included a number of restrictive conditions on Griffin’s suspended sentence. The District Court prohibited Griffin from contact "with children under the age of eighteen; from using or possessing pornographic material, alcoholic beverages or drugs; from entering any establishments where alcohol is the primary item of sale; and from using or possessing any firearms. Further, the court ordered Griffin to seek and maintain full-time employment; to submit to random drug testing; to enroll in a chemical dependency treatment program; and to successfully complete a sex offender treatment program under the supervision of the Department. ISP will provide Griffin with the resources and tools he needs to comply with these original conditions of his suspended sentence.
¶28 We agree with the District Court’s conclusion that the ISP requirement simply requires Griffin to “abide by the original conditions of probation ... subject to greater scrutiny.” ISP was contemplated as one of the original conditions of Griffin’s suspended sentence, and the requirements of ISP do not change the conditions of the District Court’s sentence. Because the District Court’s order does not modify Griffin’s punishment, he has not suffered any due process, double jeopardy, or ex post facto violations. As a result, it is unnecessary to reach the other issues he raises on appeal.
¶29 Finally, we must address Griffin’s claim that he was coerced into signing the request to modify the conditions of his probation. Griffin has failed to produce any evidence to support his claim that he signed the request under duress. Thus, we cannot conclude that the District Court abused its discretion in denying his motion.
CONCLUSION
¶30 In conclusion, we hold that the District Court did not abuse its discretion in denying Griffin’s motion to set aside the order modifying the conditions of his probation. The District Court had the authority to modify the conditions of Griffin’s probation pursuant to § 46-23-1011(4), MCA. The original conditions of Griffin’s suspended sentence contemplated the possibility of his participation in ISP. Griffin’s participation in the ISP program ensures his compliance with each of the conditions imposed by the District Court in his sentence. The court’s order does not modify the substance of Griffin’s punishment, and as a result, does not implicate ex post facto, double jeopardy, or due process concerns. On appeal, Griffin bears the burden of proof in demonstrating that the District Court has abused its discretion. Here, he has failed to meet that burden of proof. Thus, we affirm the District Court’s order denying Griffin’s motion to set aside the order modifying the conditions of his probation.
CHIEF JUSTICE GRAY, JUSTICES COTTER, NELSON, WARNER, RICE and MORRIS concur.
|
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 C.B., mother of D.B. andD.B., appeals the Fourth Judicial District Court’s order terminating her parental rights. We reverse and remand for further proceedings.
¶2 We restate the issues as follows:
¶3 I. Did the District Court apply the correct statutory criteria in terminating C.B.’s parental rights?
¶4 II. What are the proper statutory criteria to be applied on remand?
BACKGROUND
¶5 C.B. and her children first became involved with the Department of Public Health and Human Services, Child and Family Services (CFS) on a voluntary basis, due to C.B.’s entanglement with drugs and an abusive boyfriend. Several months later, CFS removed the children from C.B.’s home based on a tip that she was planning to flee the state with them. C.B. subsequently entered into a rehabilitation program at the Montana Chemical Dependency Center (MCDC), which she did not successfully complete.
¶6 CFS submitted a petition for adjudication that the children were youths in need of care and temporary legal custody (TLC). C.B. stipulated to the petition, and the District Court approved it without a hearing. The children were removed from their first foster home and placed with C.B.’s maternal relatives. C.B. voluntarily began to get treatment and therapy, though no formal court-approved treatment plan was in place. The court-appointed special advocate (CASA) recommended increased, unsupervised visitation for C.B. All parties were working towards the goal of reunification.
¶7 Regrettably, before that reunification could occur, C.B. was incarcerated again for a parole violation. C.B. was sentenced to seven months in prison for driving without liability insurance. C.B.’s maternal relatives could no longer care for the children, and CFS placed them with a foster family seeking to adopt.
¶8 Eight months after first removing the children from their home, CFS finally presented a treatment plan for C.B. to the District Court. The plan contained no less than six primary goals and twenty-two tasks and subtasks. The plan did not contain any timelines or deadlines. Each task was scheduled to start “immediately,” and where an expected and actual completion date should have been listed, each task was simply classified as “ongoing.”
¶9 C.B. objected to the plan on the grounds that it required her to undergo a neuropsychological evaluation. C.B. later withdrew this objection, and stipulated to the treatment plan. The District Court approved the treatment plan in December 2005.
¶10 C.B. was released from prison shortly after, and began work on the court-ordered treatment plan. At a meeting with CFS in February, C.B.’s attorney raised concerns about C.B.’s ability to complete the complicated plan without more assistance from CFS.
¶11 Dr. Jacqueline Day examined C.B. in March. Following the exam, but before Dr. Day issued her report, a hearing was held on CFS’s petition to extend TLC of the children. At the hearing, C.B. objected that that a number of the tasks required by CFS were unreasonable.
¶12 Dr. Day finally issued her report in April. Dr. Day diagnosed C.B. with mild to moderate cerebral dysfunction. As a result of this dysfunction, C.B. has severe deficits in vocabulary and auditory learning skills, and milder deficits in visual learning and interpretation of social cues. Dr. Day also reported that C.B. suffers from verbally-based learning disabilities, and has the reading comprehension skills of a fifth grader. Additionally, C.B. was diagnosed with post-traumatic stress disorder, and paranoid and schizoid personality traits.
¶13 Dr. Day recommended additional services that CFS could provide to C.B. to address her individual needs. She specifically advised that C.B. would be more successful if CFS provided her with written instructions, checklists, and reminders. Following Dr. Day’s diagnosis of C.B.’s cognitive disabilities, no alteration was made to the treatment plan.
¶14 In July 2006, less than six months after the treatment plan was approved by the District Court, CFS filed a petition to terminate C.B.’s parental rights, and award CFS permanent legal custody with the right to consent to adoption.
¶15 Four months later, the District Court conducted a hearing on the petition for termination of parental custody. In a post-hearing brief, C.B. again raised her objection that the treatment plan was too onerous, and that CFS did not provide her with adequate support. On December 28, 2006, the District Court issued an order terminating C.B.’s parental custody. It is from this order which she appeals.
STANDARD OF REVIEW
¶16 We review a district court’s decision to terminate parental rights to determine whether the district court abused its discretion. In re 2007 MT 216, ¶ 22, 339 Mont. 28, ¶ 22, 168 P.3d 629, ¶ 22. In reviewing for abuse of discretion, we consider “whether the trial court acted arbitrarily, without employment of conscientious judgment, or exceeded the bounds of reason resulting in substantial injustice.” In re K.J.B., ¶ 22 (internal citations omitted).
¶17 A parent’s right to the care and custody of a child is a fundamental liberty interest which must be protected by fundamentally fair procedures. In re K.J.B., ¶ 22. See also In re A. T., 2003 MT 154, ¶ 10, 316 Mont. 255, ¶ 10, 70 P.3d 1247, ¶ 10 (internal citations omitted). Thus, “before terminating an individual’s parental rights, a district court must adequately address each applicable statutory requirement.” In re A.T., ¶ 10.
¶18 In order to satisfy these statutory requirements, the district court must make specific factual findings. In re ¶ 23. We review these findings of fact to determine whether they are clearly erroneous. In re K.J.B., ¶ 23. We review the district court’s conclusions of law to determine whether they are correct. In re K.J.B., ¶ 23. Finally, the party seeking to terminate parental rights must prove by clear and convincing evidence that the statutory criteria for termination have been met. In re A.T., ¶ 10.
DISCUSSION
¶19 I. Did the District Court apply the correct statutory criteria in terminating C.B.’s parental rights?
¶20 Since the children were adjudicated youths in need of care, § 41-3-609(1)(f), MCA, provides the necessary criteria for terminating the parent-child relationship in the instant case:
(1) The court may order a termination of the parent-child legal relationship upon a finding established by clear and convincing evidence [that]....
(f) the child is an adjudicated youth in need of care and both of the following exist:
(i) an appropriate treatment plan that has been approved by the court has not been complied with by the parents or has not been successful; and
(ii) the conduct or condition of the parents rendering them unfit is unlikely to change within a reasonable time.
¶21 The District Court cited § 41-3-609(1)(f), MCA, in its opinion, but failed to make the specific factual findings required by the statute: namely, that C.B. did not comply with an appropriate treatment plan, and that her conduct or condition was unlikely to change within a reasonable time. Instead of applying § 41-3-609(1)(f), MCA, the District Court relied on the legal presumption that termination is appropriate:
After considering all of the evidence in this case, as summarized above, the Court finds that it is uncontroverted that the children need permanency, and soon. There is a legal presumption that termination is appropriate in cases where children have been in foster care of [sic] 15 of the last 22 months. There is insufficient evidence here to rebut that presumption. To the contrary the clear and convincing evidence directs a finding that it is in the best interest of the children to accomplish permanency by terminating [C.B.’s] parental rights and freeing the children for adoption by the Bates’. The Court finds that the department has made reasonable efforts to accomplish alternatives, but that these efforts have been continually frustrated by [C.B.’s] inability to follow through. Almost all of [C.B.’s] failures were caused by cognitive and psychological problems that are not her fault and might be overcome by long term therapy and massive outside support for [C.B.]. Tragically, the children cannot wait to find out if these goals can ever be accomplished.
¶22 Section 41-3-604, MCA, provides that when a child has been in foster care for fifteen of the last twenty-two months, “the best interests of the child must be presumed to be served by termination of parental rights.” Section 41-3-604, MCA. However, the procedures by which parental rights are terminated are governed by § 41-3-609, MCA, not § 41-3-604, MCA.
¶23 We have held that “the presumption in § 41-3-604(1), MCA, neither eliminates the substantive requirements of § 41-3-609, MCA, nor diminishes the clear and convincing burden of proof on the party seeking termination of parental rights.” In re B.H., 2001 MT 288, ¶ 29, 307 Mont. 412, ¶ 29, 37 P.3d 736, ¶ 29. Here, the presumption in favor of termination applies, but it does not excuse the District Court from making the specific statutory findings required by § 41-3-609, MCA, or relieve the State from meeting its high burden of proof.
¶24 The District Court’s reliance on this presumption impermissibly shifted the burden of proof to C.B. It is well-established that the party seeking termination bears the burden of proof to show by clear and convincing evidence that the statutory criteria for termination are satisfied. See e.g. In re B.H., ¶ 16 (internal citations omitted). Yet the Court effectively shifted that burden from the State to C.B. by concluding that there was “insufficient evidence here to rebut that presumption.” It was not C.B.’s duty to rebut the presumption, but rather the State’s duty to show by clear and convincing evidence that C.B. failed to complete an appropriate treatment plan, and that C.B.’s conduct or condition was unlikely to change within a reasonable time.
¶25 The District Court’s factual findings do not specifically address whether the treatment plan was appropriate, whether C.B. completed the treatment plan, or whether her condition was unlikely to change within a reasonable time. Instead, the District Court’s factual findings are centered on whether CFS made “reasonable efforts to accomplish alternatives.” Under § 41-3-423, MCA, the “reasonable efforts” inquiry is relevant to abuse and neglect proceedings, in preventing the removal of a child or in working towards reunification of a family separated by the state. While the question of whether CFS did or did not make reasonable efforts may be relevant in the instant case, it does not replace the two-prong statutory inquiry mandated by § 41-3-609(1)(f), MCA. Similarly, it does not relieve the State from meeting its burden of proof, as discussed above.
¶26 Because a parent’s right to custody of her children is fundamental, it must be protected by fundamentally fair procedures. In re K.J.B., ¶ 22. In the instant case, those procedural safeguards are found in § 41-3-609(1)(f), MCA. Thus, the district court must adequately address each statutory requirement by making specific factual findings. In re A.T., ¶ 10; In re K.J.B., ¶ 23. Here the District Court failed to make specific findings under either § 41-3-609(1)(f)(i) or (ii), MCA. Instead, the District Court improperly relied on the § 41-3-604(1), MCA, presumption in favor of termination and the finding that the State had made reasonable efforts under § 41-3-423, MCA.
¶27 We conclude that the District Court erred by applying the wrong statutory standards to assess whether C.B.’s parental rights should be terminated. Thus, the District Court’s order terminating C.B.’s parental rights must be reversed, so that the proper statutory criteria may be applied and considered on remand.
¶28 II. What are the proper statutory criteria to be applied on remand?
¶29 Before parental rights can be terminated, the State must present clear and convincing evidence that the parent failed to comply or failed to succeed at an appropriate, court-ordered treatment plan, and that the conduct or condition rendering the parent unfit is unlikely to change within a reasonable time. Section 41-3-609(1)(f), MCA. “In the context of termination of parental rights cases, we have defined clear and convincing evidence as simply a requirement that a preponderance of the evidence be definite, clear, and convincing, or that a particular issue must be clearly established by a preponderance of the evidence or by a clear preponderance of proof.” In re F.M., 2002 MT 180, ¶ 48, 311 Mont. 35, ¶ 48, 53 P.3d 368, ¶ 48 (internal citations omitted). To provide the district courts with explicit guidance in applying the statutory criteria set out in § 41-3-609(1)(f), MCA, we discuss each prong of the test individually below.
¶30 A. First prong: compliance with an appropriate treatment plan
¶31 Section 41-3-609(1)(f)(i), MCA, directs the court to consider whether “an appropriate treatment plan that has been approved by the court has not been complied with by the parents or has not been successful.” Thus, the first determination the court must make is whether there is an “appropriate” treatment plan in place.
¶32 This Court has rejected any single, generalized definition of an “appropriate” treatment plan, “because no bright line definition is possible in light of the unique circumstances of each case.” In re A.N., 2000 MT 35, ¶ 26, 298 Mont. 237, ¶ 26, 995 P.2d 427, ¶ 26. Instead, we consider a number of factors including: whether the parent was represented by counsel, whether the parent stipulated to the plan, and whether the plan “takes into consideration the particular problems facing both the parent and the child.” In re A.N., ¶¶ 26-27. See also In re A.A, 2005 MT 119, ¶ 21, 327 Mont. 127, ¶ 21, 112 P.3d 993, ¶ 21. Even if the parent is represented by counsel and stipulates to the plan, these two factors alone do not establish that the plan was appropriate. Matter of Custody and Parental Rights of M.M., 271 Mont. 52, 57, 894 P.2d 298, 301 (1995).
¶33 The law places the burden on the State-not the parent-to prove that the treatment plan is appropriate by clear and convincing evidence. In re A.N., ¶ 24. Further, the State has a duty to act in good faith in developing and executing a treatment plan to preserve the parent-child relationship and the family unit. In re A.A., ¶ 20; In re A.T., ¶¶ 21, 24. The State’s burden to ensure appropriateness and duty to act in good faith does not end once the court has approved a treatment plan.
¶34 Where the case involves a disabled parent or child, it is especially important to determine whether the plan “takes into consideration the particular problems facing both the parent and the child.” In re A.N., ¶ 27. While each case is unique, we have held that treatment plans must be customized to meet the needs of disabled parents. For example, in In re J.B.K., CFS specifically took the mother’s disability into account in administering the treatment plan. 2004 MT 202, ¶ 28, 322 Mont. 286, ¶ 28, 95 P.3d 699, ¶ 28. CFS recommended that the mother repeat classes to ensure she retained the information, and enrolled her in a special needs parenting program where she received one-on-one instruction tailored to her individual abilities. In re J.B.K., ¶ 28. In another case, CFS recommended that the parents undergo psychiatric evaluations before the plan was developed, so it could be tailored to fit their needs. In re K.J.B., ¶ 5.
¶35 The fact that a parent is not diagnosed with a disability until after the plan is in place is not necessarily fatal. In Custody of M.M., we held that a treatment plan was appropriate for a father, even though it was written before his limited mental capacity was diagnosed. 271 Mont. at 60, 894 P.2d at 303. In that case the father’s social workers and service providers testified that they were aware of his special needs, and adjusted the plan to meet them. Custody of M.M., 271 Mont. at 58, 894 P.2d at 302. There must be clear and convincing evidence which shows that the plan either anticipated the disabled parent’s or child’s special needs or was modified to address the special needs after they were diagnosed.
¶36 In weighing the appropriateness of a treatment plan, the courts must also inquire whether the plan contains reasonable timelines or deadlines. While each treatment plan is different, our review of cases over the years indicates that most treatment plans are divided into multiple phases of a specific duration, and that the tasks are assigned specific deadlines. See e.g. In re J.W., 2001 MT 86, ¶ 11, 305 Mont. 149, ¶ 11, 23 P.3d 916, ¶ 11 (specifying four goals to be completed within a six-month period); In re A.N., ¶¶ 14, 17, 19 (consisting of three successive phases, each lasting ninety days, each with a progressively increasing number of goals and tasks); In re A.T., ¶ 19 (identifying three goals and seven tasks for the father to complete within six months).
¶37 The lack of deadlines in any treatment plan gives CFS a great deal of unchecked discretion in determining whether the parent has satisfactorily complied with the plan. In light of the fundamental liberty interest a parent has in the custody of their children, due process requires the inclusion of a timeline for completion of goals and tasks in a treatment plan. Where a parent suffers from a disability, CFS has a special duty to assist him or her in prioritizing and scheduling the tasks.
¶38 B. Second prong: conduct or condition unlikely to change within a reasonable time
¶39 Next, the District Court must evaluate whether the parent’s conduct or condition rendering them unfit is unlikely to change within a reasonable time. Section 41-3-609(1)(f)(ii), MCA. Section 41-3-609(2), MCA, provides the courts with guidance in applying the second prong of the test:
(2) In determining whether the conduct or condition of the parents is unlikely to change within a reasonable time, the court shall enter a finding that continuation of the parent-child legal relationship will likely result in continued abuse or neglect or that the conduct or the condition of the parents renders the parents unfit, unable, or unwilling to give the child adequate parental care. In making the determinations, the court shall consider but is not limited to the following:
(a) emotional illness, mental illness, or mental deficiency of the parent of a duration or nature as to render the parent unlikely to care for the ongoing physical, mental, and emotional needs of the child within a reasonable time;
(b) a history of violent behavior by the parent;
(c) 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; and
(d) present judicially ordered long-term confinement of the parent.
¶40 At this stage of the inquiry, the District Court may properly take the statutory presumption favoring termination into consideration. Section 41-3-609(3), MCA, provides that “[i]n considering any of the factors in subsection (2) in terminating the parent-child relationship, the court shall give primary consideration to the physical, mental, and emotional conditions and needs of the child.” Section 41-3-604, MCA, provides that when a child has been in foster care for fifteen of the last twenty-two months, “the best interests of the child must be presumed to be served by termination of parental rights.” Section 41-3-604, MCA. Thus, since the children here had been in foster care for more than fifteen of the last twenty-two months, the District Court properly found that the children’s best interest outweighed the likelihood that C.B. would change within a reasonable amount of time. As stated above, however, that presumption alone is not a sufficient basis to terminate parental rights.
CONCLUSION
¶41 We hold that the District Court did not apply the correct statutory criteria required by § 41-3-609(1)(f), MCA, when it terminated C.B.’s parental rights. The District Court should have inquired whether the State had shown by clear and convincing evidence: (1) that C.B. failed to comply or succeed with an appropriate, court-ordered treatment plan, and (2) that her conduct rendering her an unfit parent was unlikely to change within a reasonable time. We reverse the District Court’s order terminating C.B.’s parental rights and remand the case for application of the proper criteria set forth in § 41-3-609(1)(f), MCA. In determining whether C.B.’s plan was appropriate, the District Court must take into consideration whether the plan adequately addressed C.B.’s disabilities by, among other things, setting reasonable deadlines and providing her with the support required by law.
CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER, COTTER, RICE and MORRIS.
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Kim Lucas Parker (Parker) appeals from an order of the First Judicial District Court, Lewis and Clark County, affirming his conviction in Helena Justice Court of the offense of Partner or Family Member Assault. We affirm.
¶2 We restate and address the following issue on appeal: Did Parker receive ineffective assistance of counsel because his lawyer did not object to testimony of the complaining witness concerning his prior partner assault conviction?
BACKGROUND
¶3 Parker was charged with Partner or Family Member Assault, § 45-5-209, MCA. The alleged victim was his ex-wife, Cody Lodge (Lodge). On March 22, 2005, a jury found him guilty of the charged offense.
¶4 Prior to trial, Parker filed a motion in limine to exclude evidence of prior crimes or wrongs. The State did not object and the District Court granted the motion.
¶5 At the trial, the following dialogue occurred during the direct examination of the complaining witness Lodge:
Q: So, what did you do when he reached down to help you?
A: I’m trying to remember the whole scenario because it happened so quick. Well, I was like I said, I was on the floor and when he reached down to help me I just kind of turned. I slid backwards. I was crawling backwards because I didn’t know what was going to happen. I mean he’s never been physical with me before. I just didn’t know what was going to take place, so I just, he came on me he was on top of me at that point....
¶6 The State then requested a recess to discuss a matter of law outside the presence of the jury. A discussion was held in chambers, outside of the presence and hearing of the jury. No record of the discussion was made. However, neither party disputes that the State moved for an order allowing it to impeach Lodge by asking her questions relating to a prior conviction of Parker for assaulting Lodge. Parker’s counsel did not object to the State’s motion. The motion was granted.
¶7 After the recess, the State asked the following questions and Lodge gave the following answers:
Q: Ms. Lodge, I just wanted to get back to something you said on direct. You had made the comment that the defendant had never been physical with you before?
A: Mmhm.
Q: Is that what you said, yes?
A: Well yeah, I mean anything else is I mean were [sic] just I don’t know how to explain it really.
Q: So, he’s never been physical with you before is what you had said, is that right?
A: Yes, Ma’am.
Q: Do you remember back in [sic] August 4th of 2002 the police being called out for another domestic violence situation where you were the victim?
A: In 2002?
Q: 2002, you had been living at 2020 Livingston?
A: I don’t even remember the incident.
Q: Officers that responded were Jerry McGee, Jennifer Johnson, and Buck Herron. It was within the city of Helena.
A: I’m just trying to remember.
Q: Okay.
A: In 2002, okay now that I see the name on there yes I do.
Q: You remember that?
A: Yeah.
Q: And, do you also know that the defendant was later convicted on October 11, 2002 for the assault?
A: Yes.
Q: And you were the victim in this assault, right?
A: I, yeah.
¶8 The jury found Parker guilty of partner or family member assault and the Justice Court sentenced him. Parker then appealed his conviction to the District Court, arguing that evidence of his prior conviction was erroneously admitted. The District Court affirmed the Justice Court, holding that Parker’s reliance on his motion in limine did not preserve the issue for appeal and that the testimony relating to Parker’s prior conviction was properly admitted to impeach Lodge. Parker appealed to this Court.
¶9 We review evidentiary rulings to determine whether there has been an abuse of discretion. A justice court and a district court have broad discretion to determine whether evidence is relevant and admissible. Absent a showing of abuse of discretion, we will not overturn a trial court's evidentiary determination. An abuse of discretion occurs when the court acts arbitrarily without conscientious judgment or exceeds the bounds of reason. State v. McCaslin, 2004 MT 212, ¶ 15, 322 Mont. 350, ¶ 15, 96 P.3d 722, ¶ 15 (citations omitted).
¶10 A claim of ineffective assistance of counsel presents mixed questions of law and fact that we review de novo. State v. Grixti, 2005 MT 296, ¶ 15, 329 Mont. 330, ¶ 15, 124 P.3d 177, ¶ 15 (citation omitted).
¶11 Article II, Section 24, of the Montana Constitution and the Sixth Amendment of the United States Constitution guarantee a person the right to the effective assistance of counsel. This Court adopted the two-pronged test of Strickland v. Washington, 466 U.S. 668, 104 S. Ct. 2052 (1984), to evaluate claims of ineffective assistance of counsel. To establish that his or her counsel was ineffective, a defendant must demonstrate (1) that counsel's performance fell below the range of competence required of attorneys in criminal cases and (2) that counsel's deficient performance prejudiced the defense. The defendant bears the burden to show that his or her counsel's performance fell below an objective standard of reasonableness. State v. St. Germain, 2007 MT 28, ¶ 33, 336 Mont. 17, ¶ 33, 153 P.3d 591, ¶ 33 (citations omitted).
¶12 Parker contends Lodge’s testimony concerning his prior conviction was character evidence prohibited by M. R. Evid. 404(b). Parker argues that his defense counsel was ineffective because he made no objection on the record to that portion of Lodge’s testimony.
¶13 The State responds that the District Court properly admitted the evidence for purposes of impeachment under M. R. Evid. 607. The State argues that because the evidence was admissible, failure to make an objection cannot amount to ineffective assistance of counsel.
¶14 Whether the District Court properly admits evidence requires inquiry into both the purpose of the testimony and the potential effect on the jury. When considering the admissibility of evidence used to challenge the presumption of a witness’s truthfulness through impeachment, consideration must be given to § 26-1-302, MCA, and M. R. Evid. 607, 401 and 403.
¶15 Section 26-1-302, MCA, provides as follows:
A witness is presumed to speak the truth. The jury or the court in absence of the jury is the exclusive judge of his credibility. This presumption may be controverted and overcome by any matter that has a tendency to disprove the truthfulness of a witness’s testimony; such matters include but are not limited to:
(7) inconsistent statements of the witness;
(8) an admission of untruthfulness by the witness;
(9) other evidence contradicting the witness’s testimony.
¶16 The credibility of a witness may be attacked by any party. M. R. Evid. 607. If a party objects to relevant impeachment evidence on the ground that it is unduly prejudicial, the trial court must consider whether it should be excluded because its probative value is substantially outweighed by the danger of unfair prejudice. M. R. Evid. 403.
¶17 The District Court, in affirming the Justice Court, concluded:
A review of the trial testimony discloses that Lodge’s credibility was a crucial factor in the prosecution of Defendant. Her descriptions at trial of the incident were in direct conflict with her initial reports to law enforcement. What began as a serious and painful physical assault by Defendant ended at trial as an accidental fall. The State had every right to impeach her testimony at trial by calling her on her statement that Defendant had never been physical with her before. The relevance of this testimony, in the Court’s opinion, outweighs any prejudice to Defendant. [M. R. Evid. 403].
¶18 We agree with the District Court. Lodge’s comment was gratuitous and did not appropriately respond to the question the prosecutor asked. The evidence of Parker’s prior assault conviction was not aimed at his character, but at the credibility of Lodge’s statement that Parker had never been physical with her before. In light of the probative value and purpose for which the evidence was admitted, we conclude that the Justice of the Peace did not abuse his discretion in allowing it.
¶19 An instruction to the jury that it was to consider the evidence of Parker’s prior conviction of partner or family member assault only as it might bear on Lodge’s credibility could have been appropriate. Parker has not argued that his counsel should have requested such an instruction.
¶20 A failure to object to properly admitted evidence does not constitute ineffective assistance of counsel. Clausell v. State, 2005 MT 33, ¶ 21, 326 Mont. 63, ¶ 21, 106 P.3d 1175, ¶ 21. In this case, Parker’s counsel’s lack of an objection to the evidence of his prior conviction did not render him ineffective.
¶21 Affirmed.
JUSTICES NELSON, MORRIS and RICE concur.
The Helena Justice Court has been established as a justice court of record. Therefore, the appeal to the District Court was confined to review of the record and questions of law. Section 3-10-115(1), MCA.
The record presented to this Court does not contain a written transcript of the jury trial. However, the District Court’s Decision and Order of August 30,2005, recites verbatim the testimony repeated herein. Neither party contests that this exact testimony was heard by the jury at the Justice Court trial.
|
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 Debra Larsen (Larsen) appeals from an order of the Thirteenth Judicial District, Yellowstone County, granting Western States Insurance Agency, Inc.’s (Western) motion for summary judgment. We affirm in part and reverse and remand in part.
¶2 Larsen presents the following issues for review:
¶3 Whether the District Court properly determined that the employment agreement between Larsen and Western contained a valid arbitration clause.
¶4 Whether the District Court properly determined that the employment agreement contained a valid non-competition clause.
¶5 Whether the District Court properly determined that the employment agreement was enforceable as a whole.
PROCEDURAL AND FACTUAL BACKGROUND
¶6 Western hired Larsen as a “personal lines” insurance agent in May, 2000. Western supplied Larsen with an existing book of business when she began work. The book of business consisted of clients who already owned Western insurance policies. Western required Larsen to sign a non-negotiable Producer’s Employment Agreement (Agreement) upon hiring. The Agreement had a one-year term and governed all employment matters, including matters post-employment if the employee resigned or was terminated. The Agreement’s first page stated in bold, capital letters: “THIS AGREEMENT IS SUBJECT TO ARBITRATION.” Western required Larsen to re-sign the Agreement in March of each succeeding year of her employment.
¶7 The Agreement limited Larsen’s post-employment rights regarding her Western book of business. The Agreement included a non-competition clause and a liquidated damages clause. The non- competition clause prohibited Larsen from accepting business after terminating her employment relationship with Western from clients included in Larsen’s Western book of business. The liquidated damages clause imposed a penalty on Larsen equivalent to two-hundred percent of the annual commission for each violation.
¶8 Larsen resigned from Western on July 13, 2005, to start her own insurance agency. Western informed Larsen of its intention to enforce the terms of the Agreement’s non-competition and liquidated damages clauses shortly after she left. Western referred its clients covered by the non-competition clause to Larsen, however, when Western lacked the resources to serve those clients. Larsen objected to the fact that Western could enjoy a short-term increase in profits by referring clients to Larsen while enforcing the liquidated damages clause against her. Larsen pointed out that Western could receive twice the value of the annual commission for each policy covered by the non-competition clause without expending any time or resources.
¶9 Larsen commenced this declaratory judgment action against Western on January 18, 2006. Larsen claimed that the entire Agreement amounted to an unconscionable contract of adhesion. As a result, she argued that Western could not enforce the arbitration clause. Larsen also claimed that the non-competition clause and the liquidated damages clause represented unreasonable restrictions on trade and therefore the court should void them as against public policy.
¶10 Western moved for summary judgment. The District Court determined that the terms of the Agreement, particularly the arbitration clause, fell within Larsen’s reasonable expectation. The District Court concluded that the non-competition and liquidated damages clauses satisfied the three-part test articulated in Montana Mountain Products v. Curl, 2005 MT 102, ¶ 11, 327 Mont. 7, ¶ 11, 112 P.3d 979, ¶ 11. The court noted that the Agreement restricted application of the clauses in time and space and that good consideration supported them. The court further determined the clauses to be reasonable based on Larsen’s status as an insurance industry veteran who easily could comprehend their effect. Larsen appeals.
STANDARD OF REVIEW
¶11 We review de novo a district court’s decision to grant summary judgment, using the same criteria applied by the district court under M. R. Civ. P. 56. Shelton v. State Farm Mut. Auto Ins. Co., 2007 MT 132, ¶ 13, 337 Mont. 378, ¶ 13, 160 P.3d 531, ¶ 13. Summary judgment is appropriate when “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.” M. R. Civ. P. 56(c). We draw all reasonable interferences in favor of the party opposing summary judgment. Shelton, ¶ 13.
DISCUSSION
¶12 Whether the District Court properly determined that the employment agreement between Larsen and Western contained a valid arbitration clause.
¶13 Larsen relies solely on our decision in Kloss v. Edward D. Jones & Co., 2002 MT 129, 310 Mont. 123, 54 P.3d 1, to challenge the arbitration clause’s validity. Larsen points to the following factors to argue that the clause fell outside her reasonable expectation: (1) the Agreement was standardized, (2) the party with superior bargaining power prepared the Agreement, (3) Larsen did not have the opportunity to negotiate the Agreement’s terms, and (4) Western did not explain the Agreement to her. Kloss, ¶¶ 27-28. Larsen also argues that the pervasive nature of arbitration clauses in insurance employment agreements rendered the Agreement unreasonable. Larsen claims that her refusal to accept the arbitration clause would have shut her out of the industry. Kloss, ¶ 27.
¶14 Kloss first requires us to determine whether the contract as a whole represents a contract of adhesion. Kloss, ¶ 23 (citing Iwen v. U.S., 1999 MT 63, 293 Mont. 512, 977 P.2d 989). A standardized form of agreement, drafted by the party with superior bargaining power, and without offering the weaker party the opportunity to negotiate its terms, constitutes a contract of adhesion. Kloss, ¶¶ 23-24. We determined that the securities agreement at issue in Kloss was adhesive. The superior party had prepared the standardized investment agreement, the weaker party had no opportunity to negotiate, and the superior party did not explain the consequences of the arbitration clause to the weaker party. Kloss, ¶¶ 27-28. No one in the present case disputes that the Agreement was a standardized agreement, prepared by the superior party, that the weaker party had no opportunity to negotiate its terms, and the superior party did not explain it to the weaker party. The agreement between Larsen and Western qualifies as a contract of adhesion. Kloss, ¶¶ 27-28.
¶15 As the District Court correctly noted, however, simply being adhesive does not render a contract invalid and unenforceable under the Kloss analysis. Kloss, ¶ 24. The contract also either must fall outside the weaker party’s reasonable expectation or must be unconscionable. Kloss, ¶ 24. Larsen’s challenge to the Agreement focuses exclusively on her reasonable expectation. Larsen argues that, like the plaintiff in Kloss, Western forced her into a contract of adhesion without the reasonable expectation that it would subject her to arbitration. Larsen asserts that the District Court erroneously concluded that the Agreement fell within her reasonable expectation. ¶16 The District Court noted that Larsen had signed similar agreements in her long experience in the insurance industry, and that the arbitration clause was “so boldly stated in large font on the first page” of the Agreement. Larsen correctly argues that it is inappropriate to consider the express written arbitration clause alone as evidence that the weaker party expected to arbitrate any disputes. Kloss, ¶ 29. We agree that the written term alone is insufficient to establish the weaker party’s reasonable expectation. In this case, however, the District Court based its conclusion on several additional factors.
¶17 The District Court considered Larsen’s twenty years experience in the insurance industry. It considered the fact that Larsen had entered various, similar employment agreements that contained arbitration clauses at Western and at other insurance agencies over her years in the insurance industry. The District Court also considered that the Agreement stated in bold, capital letters on the first page that “THIS AGREEMENT IS SUBJECT TO ARBITRATION.” We hold that this factual analysis constitutes sufficient grounds to support the District Court’s conclusion that the arbitration clause fell within Larsen’s reasonable expectation.
¶18 Larsen argues that the concurring opinion in Kloss required the District Court to consider whether Larsen voluntarily, knowingly, and intelligently waived her right to redress before court and jury. Kloss, ¶ 64 (Nelson, J. concurring). Larsen contends that factors such as whether the parties negotiated a term, whether disparity in bargaining power existed, whether counsel represented the parties, and whether the parties actually signed or initialed the agreement, among others, are relevant to whether a party has waived its fundamental rights to trial by jury or right to access the courts. Kloss, ¶ 65 (Nelson, J. concurring).
¶19 The adhesion, reasonable expectation, and unconscionability prongs of theNZoss analysis, however, weave together, either expressly or impliedly, all of these factors. Kloss, ¶¶ 23-32. Larsen mistakenly reads the concurring opinion in Kloss as creating law independent from Kloss. The concurring opinion served primarily to further explicate the rationale that animates the principal holding and analysis in Kloss. Kloss, ¶ 48 (Nelson, J. concurring). We did not recognize an independent analysis of the enforceability of arbitration clauses in the concurring opinion in Kloss. The District Court correctly determined that the arbitration clause in the Agreement was valid and enforceable.
¶20 Whether the District Court properly determined that the employment agreement contained a valid non-competition clause.
¶21 Whether the District Court properly determined that the employment agreement was enforceable as a whole.
¶22 We address together Larsen’s arguments regarding the validity of the non-competition clause and the enforceability of the Agreement as a whole. In Martz v. Beneficial Montana, Inc., 2006 MT 94, ¶ 11, 332 Mont. 93, ¶ 11, 135 P.3d 790, ¶ 11, we considered “whether a court or an arbitrator decides the question of a contract’s validity where the contract contains an arbitration provision.”
¶23 We adopted two relevant arbitration principles from the U.S. Supreme Court’s decision in Buckeye Check Cashing v. Cardegna, 546 U.S. 440, 126 S. Ct. 1204 (2006). First, a court must sever an arbitration clause from a contract as a whole. Martz, ¶ 15 (citing Buckeye, 546 U.S. at 445, 126 S. Ct. at 1209). Second, ‘“unless the challenge is to the arbitration clause itself, the issue of the contract’s validity is considered by the arbitrator’” if the contract contains a valid arbitration clause. Martz, ¶ 15 (quoting Buckeye, 546 U.S. at 445-46, 126 S. Ct. at 1209).
¶24 In light of Martz, the District Court properly heard and determined the validity of the arbitration clause in the Agreement. Once the District Court determined the arbitration clause’s validity, however, it exceeded its authority when it decided further substantive issues under the Agreement. Those issues properly should be decided by an arbitrator according to the terms of the Agreement. Martz, ¶ 15. We vacate the District Court’s decision as to the validity of the non-competition and liquidated damages clauses and remand for arbitration.
¶25 Affirmed in part, reversed and remanded in part.
CHIEF JUSTICE GRAY, JUSTICES RICE, COTTER and LEAPHART concur.
|
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Plaintiff Raymond M. Cunnington was injured when he fell from makeshift scaffolding while putting up siding on a house under construction in Flathead County. Cunnington sued Defendant Mike Gaub, his direct employer, and Defendant and Respondent Alrick Hale, the owner of the house which was under construction. The District Court granted Hale’s motion for summary judgment on the basis that Hale owed no duty to Cunnington. Cunnington appeals the grant of summary judgment for Hale. We affirm in part, reverse in part, and remand for further proceedings.
¶2 We restate the issues as follows:
¶3 1. Did the District Court err in concluding that Cunnington’s work on the makeshift scaffolding was not an inherently dangerous activity when Cunnington admitted that no special precautions were necessary to render the activity safe?
¶4 2. Did the District court err in concluding that there is no genuine issue of material fact as to whether Hale exercised sufficient control over the project to establish potential liability?
BACKGROUND
¶5 Hale, since 1984, has worked as an estimator and manager of a construction company which builds roads, provides ready-mix concrete, and performs asphalt paving, gravel crushing, and other similar work. Hale lived with his family in Missoula until 2001, when they moved to Kalispell. A few years before building the home at issue here, Hale had built a second home in Whitefish. He acted as the general contractor on that house, and he and his father, Martin Hale, dug the foundation, poured the concrete, and were in charge of the electrical, plumbing and painting work. Hale hired subcontractors to do the framing, roofing, siding and sheet rocking for the Whitefish house.
¶6 In June 2002, Hale and Gaub entered into a construction contract whereby Gaub agreed to build a home for Hale in Flathead County on the shore of Bitterroot Lake. Although Gaub was apparently responsible for building the structure of the 4,400 square foot home, Hale again undertook responsibility for the excavation, concrete, plumbing and electrical work. The contract is silent as to who was responsible for safety on the project. During construction, Hale was on site almost every day.
¶7 On September 12,2002, Gaub erected a makeshift scaffold that he and Cunnington used to nail siding to the house. The scaffold consisted of a scaffolding plank laid over a sawhorse and a eight foot stepladder, which was folded and leaned against the wall with the bottom resting in a pit in front of the basement window. Gaub had apparently asked Hale three or four times to complete the backfilling so that he could finish the siding. Hale’s response, according to Gaub, was that he had other projects he needed to finish first.
¶8 Gaub instructed Cunnington to stand on the scaffolding plank. When Cunnington was unable to reach the top piece of siding, Gaub suggested that he place a three-foot stepladder on top of the scaffolding plank. Cunnington did as he was instructed but, as soon as he stepped onto the three-foot ladder, the apparatus kicked out from under him and he fell into the window pit. Cunnington sustained a severe fracture/dislocation of his right foot and ankle in the fall.
¶9 When Cunnington was injured, Hale and his father were on site, installing the drain tile in the septic system. For a while after the accident, Gaub continued to work on the house. However, in early October, Gaub presented Hale with an invoice for about $15,000 which Hale refused to pay until Gaub obtained a release from Cunnington discharging Hale from any liability regarding Cunnington’s accident. Gaub was unable or unwilling to obtain the release, and soon thereafter packed up his supplies and left the worksite. Hale then hired out the remaining work to subcontractors who completed the siding, finish work, closets and doors.
¶10 Cunnington later filed a complaint alleging that both Gaub and Hale were negligent and had violated the Montana Safety Act, and claiming that Gaub violated the Montana Scaffolding Act. Cunnington later amended the complaint to allege that Hale is vicariously liable for Gaub’s negligence. Hale eventually filed a motion for summary judgment claiming he had no liability for Cunnington’s injuries. Cunnington opposed Hale’s motion and filed his own motion for partial summary judgment.
¶11 On March 28, 2005, the District Court granted Hale’s motion as against Cunnington, denied Cunnington’s motion as to Hale, and granted Cunnington’s motion for partial summary judgment on the issue of liability as to Gaub. The court determined that summary judgment for Hale was appropriate because Cunnington failed to show the existence of a legal duty on the part of Hale. Specifically, the court concluded that, as to Hale, Cunnington’s accident was not foreseeable, and that Hale did not exercise any control over the project or Cunnington. Further, the court concluded that Cunnington was not engaged in an inherently dangerous activity because Cunnington admitted that no special precautions were necessary to render the activity safe. From the court’s order, Cunnington appeals.
STANDARD OF REVIEW
¶12 We review a district court’s grant of summary judgment de novo applying the same standards as the trial court pursuant to M. R. Civ. P. 56. Montana Mountain Products v. Curl, 2005 MT 102, ¶ 8, 327 Mont. 7, ¶ 8, 112 P.3d 979, ¶ 8 (citations omitted). The district court must decide, while viewing the offered proof in the light most favorable to the non-moving party, whether there exists any genuine issue of material fact. Montana Mountain Products, ¶ 8 (citations omitted). If none exists, the district court must then decide whether to grant the motion as a matter of law. Montana Mountain Products, ¶ 8 (citations omitted).
DISCUSSION
¶13 We have long recognized the general rule that absent some form of control over the subcontractor’s method of operation, the general contractor and owner of a construction project are not hable for injuries to the subcontractor’s employees. Shannon v. Wright, 181 Mont. 269, 275, 593 P.2d 438, 441 (1979) (citations omitted). There are, however, three exceptions to the general rule: (1) where there is a nondelegable duty based on a contract; (2) where the activity is “inherently or intrinsically dangerous;” and (3) where the general contractor negligently exercises control reserved over a subcontractor’s work. Umbs v. Sherrodd, Inc., 246 Mont. 373, 376, 805 P.2d 519, 520 (1991) (citations omitted).
¶14 Both parties agree that the construction contract did not impose upon Hale a nondelegable duty concerning workplace safety. Therefore, the only issues to be resolved are whether the scaffolding work was inherently dangerous and whether Hale exercised sufficient control over the project to be subjected to liability.
¶15 1. Did the District Court err in concluding that Cunnington’s work on the makeshift scaffolding was not an inherently dangerous activity when Cunnington admitted that no special precautions were necessary to render the activity safe?
¶16 An inherently dangerous activity is one, like large-scale trenching, that requires “special precautions” to prevent injury or death. See Beckman v. Butte-Silver Bow County, 2000 MT 112, ¶¶ 24-25, 299 Mont. 389, ¶¶ 24-25, 1 P.3d 348, ¶¶ 24-25. The District Court concluded that the scaffolding work was not an inherently dangerous activity primarily because, in the court’s words, Cunnington “[admitted] that no special precautions were necessary to render the activity in this case safe, therefore, the activity could not be inherently dangerous.” Though the court does not cite to a particular part of the record, its conclusion that Cunnington admitted no special precautions were necessary is presumably based on language in Cunnington’s summary judgment reply brief, where he notes that “[i]n the present action, the precautions need not even have been special. The use of an actual scaffold ... would have been sufficient to prevent Cunnington’s injury.”
¶17 On appeal, other than generally claiming that the scaffolding work was inherently dangerous, Cunnington does not directly contest the court’s conclusion that he admitted no special precautions were necessary, nor does he point to any part of the record to contradict the court’s conclusion. We therefore affirm the District Court.
¶18 2. Did the District court err in concluding that there is no genuine issue of material fact as to whether Hale exercised sufficient control over the project to establish potential liability?
¶19 An owner-contractee may be liable for injuries sustained by a subcontractor’s employee if the owner retains sufficient control over the property on which the work is performed, though the owner need not retain control over the specific manner in which the worker himself performs. See Shannon, 181 Mont. at 277, 593 P.2d at 442. In Shannon, the employee was injured when he fell from a ladder while trying to gain access to the upper level of a condominium that was under construction. Shannon, 181 Mont. at 271, 593 P.2d at 439. On appeal, Big Sky, the owner, argued that it owed no duty to the employees of its subcontractors. We affirmed the verdict for the employee, holding that, because Big Sky exercised sufficient control over the project, it had a duty to the employee and was thus liable for the employee’s injuries. Shannon, 181 Mont. at 283, 593 P.2d at 446.
¶20 As evidence of control, we noted that Big Sky demanded that work at another section of the project proceed first, and that Big Sky would not allow stairs to be built until certain pipes were in place, actions which led to the use of the ladder on which plaintiff was injured. Shannon, 181 Mont. at 277-79, 593 P.2d at 442-43. Further, Big Sky instructed the subcontractor to proceed with the work on the second floor, even though the stairs were not in place, because the condos were already sold and purchasers had been promised completion dates. Shannon, 181 Mont. at 278, 593 P.2d at 443. Thus the evidence showed that Big Sky had more than “a general right to inspect the work of the subcontractor. Specifically it show[ed] that Big Sky ... could and did exercise control over” how the employees reached the upper levels of the condos. Thus, “[t]he extra hazards created by the need to use extension ladders [could] be attributed directly to ... Big Sky.” Shannon, 181 Mont. at 279, 593 P.2d at 443.
¶21 In Beckman, we considered not only whether the trenching operation commissioned by the county was inherently dangerous, but also whether there were issues of material fact concerning whether the county retained sufficient control such that it owed a duty to the plaintiff. Beckman, ¶ 29. We looked to the Restatement (Second) of Torts § 414 for guidance in defining the control necessary to establish this duty:
One who entrusts work to an independent contractor, but who retains the control of any part of the work, is subject to liability for physical harm to others for whose safety the employer owes a duty to exercise reasonable care, which is caused by [the employer’s] failure to exercise [its] control with reasonable care. Restatement (Second) of Torts § 414.
¶22 We further considered the comments to § 414, which discuss two factors relevant to whether the employer retained sufficient control: (1) if the employer knows or should know that the independent contractor is performing work in an unreasonably dangerous manner; and (2) if the employer retains the authority to direct the manner in which work is to be performed. Beckman, ¶ 33. Given that the county was experienced in trenching operations, that county employees were present, and that there was language of control in the Water Main Extensions document, we concluded that there were genuine issues of material fact concerning whether the county negligently exercised control it retained over the work. Beckman, ¶¶ 38-39.
¶23 Reading Shannon and Beckman together, an owner may be held liable for the injuries sustained by the employee of a subcontractor if the owner exercised control in such a way as to create the dangerous condition, per Shannon, or if the owner knew or should have known of the dangerous condition and retained sufficient authority to direct how the work was performed, per Beckman.
¶24 The facts of the case before us, when considered in the light most favorable to Cunnington, show genuine issues of material fact concerning whether Hale negligently exercised control it retained over Gaub’s work. Hale, like the representatives for Big Sky in Shannon, was at the construction site almost every day and, additionally, unlike Big Sky, was responsible for a large portion of the work, including the excavation, plumbing, electrical, and concrete work. Specifically, Hale was in charge of backfilling the area surrounding the accident site, including the window pit which Cunnington fell into. Gaub testified that he asked Hale three or four times to backfill around the windows so that he could complete the siding. Also, as in Shannon, there was an approaching deadline (the contract called for the house to be completed in 120 days) and Hale may have been pushing Gaub to work faster as Gaub was behind schedule to finish the house on time.
¶25 Additionally, Hale testified in his deposition that he acted as “general contractor” for the Whitefish house, and admitted that he built the house himself, with his father. Hale performed the same jobs (excavation, plumbing, electrical, and concrete) during construction of the house at issue here, which is evidence not only of control, but also of Hale’s general house building experience. As further evidence of control and general knowledge of construction, Hale took over after Gaub quit and subcontracted what work remained.
¶26 Hale contends that he did not know Gaub was requiring Cunnington to use the makeshift scaffolding and did not see Cunnington use the scaffolding when he was hurt. However, Hale is not required to have knowledge of the specific manner in which Cunnington was performing the work, but only of the general dangerous condition. Here, although Hale was apparently aware that the area around the window pits needed backfilling, he put off doing so because he wished to complete other projects first. While scaffolding still would have been necessary even if Hale had completed the backfilling, backfilling might have leveled the surface so that normal scaffolding could have been used instead of the contraption that apparently caused Cunnington’s injuries. Hale’s actions, or more properly his inaction, thus may have led to the use of the makeshift scaffolding on which Cunnington was injured.
¶27 It is clear from our review of the record that there are genuine issues of material fact as to whether Hale retained sufficient control over the work to subject himself to liability. Accordingly, we conclude that the District Court erred in granting summary judgment on the issue of control.
CONCLUSION
¶28 We affirm the District Court’s conclusion, based on Cunnington’s admission that no special precautions were necessary, that the scaffolding work was not an inherently dangerous activity, reverse the court’s grant of summary judgment concerning whether Hale exercised sufficient control over the project to establish potential liability, and remand for further proceedings consistent with this Opinion.
CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER and MORRIS concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Janet Redies (“Redies”) brought the instant action in the District Court for the Thirteenth Judicial District, Yellowstone County, against Attorneys Liability Protection Society, Inc., and four of its employees (collectively, “ALPS”). She alleged that ALPS had, two years earlier, engaged in unfair trade practices by failing to settle promptly the legal malpractice suit she had brought against John Kelly Addy (“Addy”), one of ALPS’s insureds. Redies further alleged tortious breaches of statutory duties and the implied duty of good faith and fair dealing.
¶2 ALPS answered Redies’ complaint and thereafter filed a motion for summary judgment, which the District Court granted. The court determined that ALPS had “a reasonable basis in law” under § 33-18- 242(5), MCA, for contesting Redies’ claims against Addy, that there were no genuine issues of material fact, and that ALPS was entitled to judgment as a matter of law. The court further determined that all other pending motions were moot. Redies timely appealed.
¶3 On appeal, Redies has framed a number of interrelated issues, all of which pertain to the following overarching question: Did the District Court err by granting ALPS’s motion for summary judgment on the ground that ALPS had a reasonable basis in law for contesting Redies’ claims against Addy?
¶4 In the course of answering this question, we address the following sub-issues raised by Redies: whether the reasonableness of ALPS’s “basis in law” for contesting Redies’ claims against Addy is a question of fact or a question of law; whether genuine issues of material fact remain, thus precluding summary judgment in this case; and, lastly, whether Redies’ “reasonable investigation” claim under § 33-18-201(4), MCA, survives a determination under § 33-18-242(5), MCA, that ALPS had a reasonable basis in law for contesting Redies’ claims against Addy.
FACTUAL AND PROCEDURAL BACKGROUND
I. The Conservatorship
¶5 Redies was involved in a bicycling accident on May 29,1995, as a result of which she suffered a traumatic brain injury and was comatose for approximately two weeks. Consequently, Redies’ mother, Rosalie Redies (“Rosalie”), and sister, Judy Uerling (“Uerling”), filed a petition in the District Court for the appointment of a temporary conservator of Redies’ estate. The court granted the petition on June 8, 1995, appointing C. A. Cosner (“Cosner”), a certified public accountant with whom the family already had a relationship, to serve in this capacity.
¶6 Redies emerged from her coma in mid-June 1995; however, she remained somewhat disoriented and unaware of her surroundings. Given her persistent incapacity, Rosalie and Uerling petitioned the District Court to make Cosner’s appointment permanent. The court first appointed Vicki W. Dunaway (“Dunaway”), who had previously represented Redies in a number of matters, to represent Redies as “attorney ad litem” in conjunction with Rosalie and Uerling’s petition. Following an investigation, Dunaway reported that Redies’ mental condition, although somewhat improved, was still not to the level of being able to handle either her financial affairs or arrangements concerning her person. Accordingly, on September 6, 1995, the court appointed Cosner as permanent conservator, a capacity in which he served through April 25,2000. (This conservatorship, incidentally, was the subject of a previous appeal to this Court. See Redies v. Cosner, 2002 MT 86, 309 Mont. 315, 48 P.3d 697.)
¶7 After his appointment as temporary conservator, Cosner learned that Redies owned significant assets, most of which were heavily encumbered; that she did not have any health insurance; and that she was incurring substantial medical costs due to her injuries. In June 1995, he applied for Medicaid benefits on Redies’ behalf; however, the extent of her assets apparently disqualified her from receiving such benefits.
¶8 Cosner became concerned that Redies’ mounting medical bills would quickly exceed all equity in her assets. Thus, immediately following his appointment as permanent conservator, he met with Uerling, Dunaway, and Addy to discuss Redies’ financial situation and how best to conserve and manage her estate. Addy-who, as noted above, was an ALPS-insured attorney-was already involved in the case, having been retained by Cosner for legal advice concerning the management and administration of Redies’ estate. Addy also had represented Uerling in an earlier dispute with Redies, which was fully resolved the previous year. See Redies, ¶ 5.
¶9 Cosner, Uerling, Dunaway, and Addy discussed a number of assets in Redies’ estate and agreed that a management plan should be developed to maximize the amount of Redies’ wealth that would be exempt from recapture by the government or the claims of creditors. Of particular relevance, Addy suggested that Cosner “pauperize” (in other words, impoverish) Redies by selling off most of her assets so that she could qualify for and receive Medicaid payments for her supervised care. For instance, it was decided that Redies’ twenty-acre parcel of land south of Red Lodge should be liquidated; that Cosner should dispose of Redies’ five vehicles; and that Uerling should go into Redies’ home and take anything Uerling thought she could use or that had significant sentimental value to her, particularly a knife set given to Redies by her father. The possibility of filing a bankruptcy petition was also addressed, and Addy recommended that Rosalie’s will be revised so that any bequest or devise to Redies would lapse in the event that she was still incapacitated at the time of Rosalie’s death. That way, the bequest or devise would not end up going to creditors or the government under the recapture provisions of the Medicaid program.
¶10 Cosner proceeded to manage Redies’ property according to the recommendations and decisions made at the September 6, 1995 meeting, selling real and personal property owned by Redies, putting the remaining personal property in storage, paying a number of Redies’ debts, and seeking settlement with her remaining creditors. He successfully avoided bankruptcy and was able to negotiate forgiveness of approximately $123,000 in medical bills, after which Uerling (who had been appointed Redies’ guardian at the same time Cosner was appointed Redies’ conservator) qualified Redies for Medicaid and Social Security Supplemental Security Income (“SSI”) coverage. Uerling also arranged medical care for Redies.
¶11 By 1998, Redies had made a significant recovery, and she began to question the disposition of her assets, as she was subsisting on SSI payments. Through new counsel, she sought an accounting of her assets and details regarding the management of her estate. Cosner and Uerling attempted to answer Redies’ questions; however, each answer gave rise to new questions. The tone of the correspondence became adversarial, and Cosner and Uerling eventually filed petitions to terminate their respective roles as conservator and guardian. See Redies, ¶¶ 8-10. Litigation ensued, which ultimately culminated in Redies’ previous appeal to this Court (which we decided May 2, 2002).
II. Redies v. Addy
¶12 Meanwhile, on or about July 9, 2001, Donald L. Harris (“Harris”), Redies’ counsel at the time, notified Addy and Cosner of a complaint he was prepared to file on Redies’ behalf. Among other things, Harris identified claims for negligence due to Addy and Cosner’s failure, promptly after Redies’ bicycling accident, to establish a trust to protect and preserve her estate. He also indicated that Redies preferred “to resolve this matter without filing a lawsuit if that is possible.”
¶13 As it turns out, the parties were unable to negotiate a resolution, and Redies ended up filing a complaint in January 2002. The course of events during the period beginning in July 2001 and ending in December 2002-in particular, ALPS’s refusal to settle Redies’ claims against Addy both before and after she filed her complaint-formed the basis of her present unfair trade practices action against ALPS. Thus, it is necessary to set forth, in some detail, a number of the parties’ communications and court filings during this period. Because negotiations over Redies’ negligence claim against Cosner are not relevant to the issues before us (notably, he was not named in the complaint she ultimately filed), the ensuing discussion focuses solely on the exchanges pertaining to Redies’ claims against Addy.
¶14 On receipt of Harris’s letter, Addy immediately notified ALPS, which undertook an investigation into the merits of Redies’ claims. The record discloses a number of communications between ALPS and Addy and between ALPS and Harris, as well as research on Harris’s part, during the latter half of 2001. In October, Harris obtained a professional opinion on whether a self-sufficiency trust (see §§ 53-18-101 to -105, MCA, and Admin. R. M. 37.2.501 to .513) could and should have been established following Redies’ bicycling accident to conserve her assets. He was advised that, given Redies’ disabling brain injury, her substantial medical bills, and her lack of health insurance, the establishment of a self-sufficiency trust would have qualified her for Medicaid while preserving her assets in a trust. He was further advised that income from the trust could have been used to supplement any needs not met by Medicaid or SSI (e.g., spending money, additional food and clothing, health services not otherwise covered, recreational needs).
¶15 Harris enclosed a copy of this report with a settlement demand to ALPS dated October 10, 2001. At the outset of his demand letter, he reiterated that “Ms. Redies hopes to settle her claims against Mr. Addy . . . without litigation.” He then articulated the theory behind those claims: Under the circumstances that existed immediately following Redies’ bicycling accident, Addy should have promptly recommended the establishment of a self-sufficiency trust for Redies. “Lawyers, in particular, are obligated to know about the laws which are relevant to their client’s case. ... To diligently represent Ms. Redies, . . . [Addy] had a duty to do sufficient research to learn about the Montana Self Sufficiency Trust statutes.” As a result of Addy’s failure to do so, “Redies’ estate was quickly depleted” and “[s]he now lives in poverty.”
¶16 After receiving Harris’s settlement demand, ALPS commissioned its own professional evaluation of Redies’ claims. Among other things, the authors of the December 4, 2001 evaluation provided to ALPS discussed a possible statute of limitations defense and questioned whether Redies could have qualified as a beneficiary under the self-sufficiency trust provisions. They also questioned whether Redies could even bring this action against Addy, and they disputed the damages figures recited in the settlement demand. Ultimately, they concluded that “sufficient questions exist as to the issue of liability so that we believe it is not reasonably clear. At this point, unless the Plaintiff is willing [to] agree to a resolution of the case for an amount far below what their current demand is, we believe that a settlement conference would be of little value.”
¶17 Of particular significance in the case at hand is the analysis of whether Redies could even bring the action against Addy. While positing, initially, that “absent a direct attorney-client relationship between [Redies] and [Addy], no action should be allowed,” the authors of the evaluation went on to caution as follows:
As you know, however, there have been challenges in the past as to this privity requirement. Most of the erosion of the concept has occurred in connection with beneficiaries of wills being allowed to sue the attorney for the testator. To our knowledge, Montana has not decided the issue of whether a protected person might be able to sue the attorney of the conservator. Clearly, she could sue the conservator. Presumably, the conservator would have a right over against his attorney. Thus, our court may short circuit that process by simply finding that the relationship between the protected person and the conservator’s attorney was close enough to allow suit.
Given these considerations, they concluded as follows:
We do not put a great deal of stock in this privity defense, but it represents yet another problem the Plaintiff is going to experience in prosecuting her claim. Given sufficient time and effort, we believe that defense can be circumvented.
¶18 Within a week of receiving the foregoing report, ALPS notified Harris that it believed the case was defensible for the reasons stated in the December 4, 2001 evaluation and that it was rejecting Redies’ settlement offer. Accordingly, Redies filed a complaint on January 2, 2002, stating negligence and breach of fiduciary duty claims against Addy.
¶19 Addy (represented by ALPS) answered the complaint and, on or about March 18, 2002, filed a motion for summary judgment. In his motion, Addy maintained that proof that an attorney-client relationship existed is “[e]ssential to a malpractice action”; that his only attorney-client relationships in this matter were with Cosner and Uerling; and that “no attorney-client relationship exists or ever has existed between Plaintiff Redies and Defendant Addy.” Acknowledging that “[s]ome courts, in very limited situations, have extended the duty of an attorney to certain non-clients,” he noted that this Court suggested this possibility in Rhode v. Adams, 1998 MT 73, 288 Mont. 278, 957 P.2d 1124. He then argued that if this Court were confronted with the question of whether an attorney owes a duty to a nonclient, we would adopt the multi-factor balancing test set forth in Trask v. Butler, 872 P.2d 1080, 1083 (Wash. 1994), and conclude that an attorney retained by a conservator has no duty to the protected person. (We acknowledged the Trask balancing test in Rhode but found it inapplicable to the factual scenario before us. See Rhode, ¶ 17.)
¶20 On May 23, 2002, the District Court, Judge Baugh presiding, denied Addy’s motion on the ground that factual and legal issues regarding the existence of an attorney-client relationship between Addy and Redies existed. It is not clear what negotiations between the parties, if any, immediately followed, but on or about October 11, 2002, Redies filed a motion for pretrial ruling asking the court to find, as a matter of law, that Addy owed her a duty of care when he rendered legal advice to Cosner concerning the management of her estate. Judge Baugh granted this motion on November 21, 2002, reasoning that “application of the Trask factors to the present case shows that Mr. Addy owed a duty to Ms. Redies when he rendered legal advice to the conservator, Mr. Cosner.” In addition, the court determined that Redies was an “intended beneficiary” of Addy’s advice to Cosner in light of § 72-5-427(3)(w), MCA. Shortly thereafter, the parties settled the suit.
III. Redies v. ALPS
¶21 On December 9, 2003, Redies filed the instant action alleging, pursuant to § 33-18-242(1), MCA, that ALPS had violated § 33-18-201, MCA, during the foregoing negotiations in Redies v. Addy. Specifically, with respect to the period (in 2001) before she filed her complaint, she alleged that Addy’s liability to Redies “was reasonably clear”; that she had “made a good faith, prompt attempt to settle the claim”; and that ALPS, “without statement of any meritorious basis in fact or in law, denied the claim and refused to offer any amount to settle the claim,” instead “embark[ing] upon a course and pattern of delay in the investigation, evaluation, and settlement of the claim, all of which was in bad faith.”
¶22 Redies further alleged that after she filed her complaint in January 2002, ALPS “continued their pattern and course of delay and purposeful frustration of Plaintiffs rights,” though “the liability of [Addy] was reasonably clear, and such liability was known to [ALPS] or would have been known upon reasonable investigation of all information available.” In addition to her unfair trade practices claim, Redies alleged, in two separate counts, tortious breaches of statutory duties (specifically, § 33-18-201, MCA) and the implied duty of good faith and fair dealing.
¶23 ALPS answered Redies’ complaint and, on October 25,2004, filed a motion for summary judgment on the ground that “[a]t all times during the pendency of the underlying case against [Addy] ..., ALPS had a ‘reasonable basis in law’ for contesting Redies’s claim”-namely, “that as the attorney for a conservator, [Addy] did not owe a professional duty of care to Redies, the protected person in a conservatorship proceeding.” Taking advantage of language in Watkins Trust v. Lacosta, 2004 MT 144, 321 Mont. 432, 92 P.3d 620, which we had decided in the interim (on June 8, 2004), ALPS asserted that the defense it had maintained on Addy’s behalf in the underlying action was “rock solid (and ALPS was entitled to rely upon it) because Montana law did not recognize a professional duty running from the lawyer for a conservator to a non-client beneficiary such as Redies.” (As discussed below, we noted in Watkins Trust that “[t]he duty owed [by an attorney] to a nonclient beneficiary is a matter of first impression in Montana.” Watkins Trust, ¶ 21 (citing Rhode, ¶¶ 12-13).)
¶24 The District Court, Judge Todd presiding, agreed with ALPS, reasoning that “not until 2004, when the Montana Supreme Court issued its opinion, in a case of first impression, were Montana attorneys held to owe duties to non-client beneficiaries.” The court acknowledged our statement in Rhode that “a multi-factor balancing test, such as that set out in Trask, may be effective when used to address the duties of attorneys in transactional matters or estate planning and probate practice.” Rhode, ¶ 17 (emphasis added). However, the court decided that the Trask test was not applicable to the case at hand because “an adversarial situation” existed between Redies and Uerling, which precluded the imposition of a fiduciary duty running from Addy to Redies during the months immediately following Redies’ accident (citing Rhode, ¶ 17).
¶25 Having determined that at the time of the alleged malpractice, Addy did not owe a duty to third-party beneficiaries such as Redies, the court concluded that “ALPS had a reasonable basis in law for the denial of and defense against Redies’ claim” and that no genuine issues of material fact remained. Accordingly, the court granted ALPS’s motion. Notably, Judge Todd did not rule on a M. R. Civ. P. 56(f) motion filed by Redies on November 30, 2004, except to say that “[t]his order renders all other motions in the cause of action moot.”
STANDARD OF REVIEW
¶26 We review a district court’s ruling on a motion for summary judgment de novo, 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.” Because summary judgment is an extreme remedy which should not be a substitute for a trial on the merits if a controversy exists over a material fact, “the evidence must be viewed in the light most favorable to the non-moving party, and all reasonable inferences will be drawn therefrom in favor of the party opposing summary judgment.” Prindel v. Ravalli County, 2006 MT 62, ¶ 19, 331 Mont. 338, ¶ 19, 133 P.3d 165, ¶ 19 (internal quotation marks omitted); In re Dorothy W. Stevens Revocable Trust, 2005 MT 106, ¶ 13, 327 Mont. 39, ¶ 13, 112 P.3d 972, ¶ 13; see also Hi-Tech Motors v. Bombardier Motor Corp., 2005 MT 187, ¶ 32, 328 Mont. 66, ¶ 32, 117 P.3d 159, ¶ 32 (explaining the process by which a motion for summary judgment is evaluated).
DISCUSSION
I. The Reasonable Basis in Law Defense
¶27 As noted above, Redies brought the instant action under the statutory provisions which prohibit unfair trade practices by insurance companies. Specifically, § 33-18-242(1), MCA, creates an independent cause of action by an insured or a third-party claimant against an insurer “for actual damages caused by the insurer’s violation of subsection (1), (4), (5), (6), (9), or (13) of 33-18-201.” Redies’ complaint does not specify any particular subsections of § 33-18-201, MCA; however, on appeal she and ALPS confine their respective arguments to subsections (4) and (6), which provide as follows:
No person may ... do any of the following: ... (4) refuse to pay claims without conducting a reasonable investigation based upon all available information;... (6) neglect to attempt in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear;....
Section 33-18-201(4), (6), MCA (paragraph breaks omitted).
¶28 An insurer, however, is not liable under § 33-18-242, MCA, if it had “a reasonable basis in law or in fact for contesting the claim or the amount of the claim, whichever is in issue.” Section 33-18-242(5), MCA. An insurer asserting this affirmative defense has the burden of establishing it by a preponderance of the evidence. Watters v. Guaranty Nat. Ins. Co., 2000 MT 150, ¶¶ 65, 67, 300 Mont. 91, ¶¶ 65, 67, 3 P.3d 626, ¶¶ 65, 67, overruled in part on other grounds, Shilhanek v. D-2 Trucking, Inc., 2003 MT 122, ¶ 21, 315 Mont. 519, ¶ 21, 70 P.3d 721, ¶ 21. ALPS invoked the reasonable basis “in law” portion of § 33-18-242(5), MCA, as a defense to Redies’ claims against it.
¶29 To determine whether an insurer had “a reasonable basis in law ... for contesting the claim or the amount of the claim,” it is necessary first to survey the legal landscape as it existed during the relevant time period. See Shilhanek, ¶¶ 24-31. Thus, we must step into ALPS’s shoes during the communications and negotiations which took place from July 2001 (when Redies, through Harris, first presented Addy with her claims against him) through December 2002 (when the parties finally settled those claims). We then determine, from this perspective, whether the defense proffered by ALPS-namely, that an attorney retained by a conservator does not owe a duty to the protected person-was, at that time, “a reasonable basis in law” for contesting Redies’ claims. Before doing so, however, it is necessary first to address the parties’ dispute over whether this issue presents a question of fact or a question of law.
II. Question of Fact or Question of Law
¶30 In Dees v. American Nat. Fire Ins. Co., 260 Mont. 431, 861 P.2d 141 (1993), then-Justice Gray expressed the view that
[b]ecause reasonableness is a question of fact, it is for the trier of fact to weigh the evidence and judge the credibility of the witnesses in determining whether the insurer had a “reasonable basis” for denying a claim. Thus, such determinations generally must be based on the facts and circumstances of each case.
Dees, 260 Mont. at 452, 861 P.2d at 154 (Gray, J., joined by Turnage, C.J., and Nelson, J., specially concurring). We later adopted this proposition in Dean v. Austin Mut. Ins. Co., 263 Mont. 386, 869 P.2d 256 (1994), where we stated as follows:
[Reasonableness is generally a question of fact; therefore, it is for the trier of fact to weigh the evidence and judge the credibility of the witnesses in determining whether the insurer had a “reasonable basis” for denying a claim. This is not a determination that can be made “as a matter of law,” as requested by the Deans and by Austin Mutual. Rather, whether an insurer has a reasonable basis in law or in fact for contesting a claim or the amount of a claim is to be determined as any other disputed issue of fact based upon the evidence and circumstances of each case.
Dean, 263 Mont. at 389, 869 P.2d at 258 (citing the special concurrence in Dees), accord DeBruycker v. Guaranty Nat. Ins. Co., 266 Mont. 294, 298, 880 P.2d 819, 821 (1994).
¶31 The following year, however, in Watts v. Westland Farm Mut. Ins. Co., 271 Mont. 256, 895 P.2d 626 (1995), we determined that Dean’s trier-of-fact rule did not apply when there was no insurance policy in effect at the time the injury occurred. See Watts, 271 Mont. at 263, 895 P.2d at 630 (“[T]here can be no genuine issues of material fact concerning [the insurers’] obligations for damage to the cantaloupe crop” given that “the binder that temporarily insured the cantaloupe was not in effect at the time of the July 18, 1993 hailstorm.”). This same exception controlled our disposition of an unfair trade practices claim in Bartlett v. Allstate Ins. Co., 280 Mont. 63, 70, 929 P.2d 227, 231 (1996) (“Bartlett did not have an insurable interest in the property and, on that basis, Allstate clearly had a reasonable basis for not paying Bartlett’s claim for insurance proceeds.”).
¶32 We later acknowledged a second exception to the trier-of-fact rule. In Watters, we reasoned that the rule “is not necessary in a summary judgment proceeding where the underlying “basis in law’ [for contesting the claim or the amount of the claim] is grounded on a legal conclusion, and no issues of fact remain in dispute.” Watters, ¶ 69 (emphasis added). Thus, we determined in Watters that it was for the court, not the trier of fact, to determine whether the applicable legal precedent provided an absolute defense as a matter of law. Watters, ¶ 69.
¶33 In the case at hand, Redies maintains that neither of the two exceptions to the trier-of-fact rule applies in this case and, therefore, that the reasonableness of ALPS’s decision to contest her claims against Addy is a question of fact, thus precluding summary judgment. There is no dispute that Addy, in fact, was insured by ALPS at the time of the alleged malpractice; thus, Redies focuses on the second exception to the rule. Seizing on language in Watters — specifically, our observation that the case law on which the insurer had relied was “legally conclusive” as to the disposition of the Watters’ claim against its insured, Watters, ¶ 72-she argues that unless there was “legally conclusive” law establishing that the insurer had no obligation to pay the claim, the “reasonable basis in law” issue must go to the trier of fact. And since there was no “legally conclusive” law in Montana establishing that a lawyer retained by a conservator does not owe a duty to the protected person, she concludes that the reasonableness of ALPS’s decision to contest her claims on this ground is a factual issue for a jury to decide.
¶34 Redies’ narrow interpretation of the second exception to the trier-of-fact rule is incorrect. Tobe sure, we noted in Watters that Juedeman v. National Farmers Union, 253 Mont. 278, 833 P.2d 191 (1992), as “the lone precedent from Montana case law upon which [the insurer] could rely under the circumstances,” was “legally conclusive to the extent there was simply no other authority in Montana at the time.” Watters, ¶¶ 71, 72. This was not to say, however, that whenever the insurer’s decision to contest a claim is not sustained by “legally conclusive” law, the issue of reasonableness must go to the trier of fact. Rather, our reasoning centered on the fact that the insurer’s basis in law for contesting the claim was “grounded on a legal conclusion.” See Watters, ¶ 69.
¶35 Accordingly, we now clarify that while the assessment of reasonableness generally is within the province of the jury (or the court acting as fact-finder), Dean, 263 Mont. at 389, 869 P.2d at 258, reasonableness is a question of law for the court to determine when it depends entirely on interpreting relevant legal precedents and evaluating the insurer’s proffered defense under those precedents. This distinction not only reflects the principle that the jury does not decide or determine the law, see § 25-7-102, MCA, but also honors the relevant language of the statute at issue, see § 33-18-242(5), MCA (“An insurer may not be held liable under this section if the insurer had a reasonable basis in law ... for contesting the claim or the amount of the claim.” (emphasis added)).
III. The Legal Landscape
¶36 Turning now to the relevant legal landscape, we must, as explained above, determine whether the defense proffered by ALPS on Addy’s behalf-namely, that an attorney retained by a conservator does not owe a duty to the protected person-was “a reasonable basis in law” for contesting Redies’ claims in 2001 and 2002.
A. First-Party Relationship between Addy and Redies
¶37 Redies argues briefly that Addy acted not only as attorney for Cosner, but also as attorney for Redies. In essence, she suggests that Addy held himself out as her attorney and, thus, that there was an attorney-client relationship between them. Similarly, Justice Cotter’s Dissent articulates a credible argument that an attorney-client relationship exists between a protected person and the attorney retained by the protected person’s conservator to render legal advice concerning the administration of the estate. Although the Dissent does not use the term, it apparently is of the view that the protected person and the attorney are in “privity of contract.” From this, the Dissent maintains that “Redies was Addy’s client.”
¶38 Redies’ and the Dissent’s arguments, however, overlook the issue at hand, which is whether ALPS had a reasonable basis in law for contesting Redies’ claims. To answer this question, we must survey the legal landscape as it actually existed during the parties’ negotiations. In this regard, neither Redies nor Justice Cotter’s Dissent cites any Montana authority establishing, or even intimating, that an attorney retained by a conservator represents the protected person. Had such authority existed at the time ALPS contested Redies’ claims, this would be a different case. As it is, however, Redies and the Dissent seem to be faulting ALPS for contesting a theory of liability-namely, that Redies was Addy’s client-whieh Redies and the Dissent believe is compelling but which, nevertheless, was an open question in Montana in 2001 and 2002. (Incidentally, Redies raised this same theory in the District Court, but her primary argument was that an attorney owes a duty of care to certain third parties such as herself.) Such an approach misplaces the focus of our inquiry, which is not on whether we agree with the plaintiffs theories of liability in the underlying suit but, rather, whether the insurer’s grounds for contesting those theories were reasonable under the existing law.
B. Third-Party Relationship between Addy and Redies
¶39 In addressing the issue of whether its defense in the underlying suit was “a reasonable basis in law” for contesting Redies’ claims, ALPS relies heavily on language in Watkins Trust v. Lacosta, 2004 MT 144, 321 Mont. 432, 92 P.3d 620. Specifically, ALPS points out that in Watkins Trust, we noted that “[t]he duty owed [by an attorney] to a nonclient beneficiary is a matter of first impression in Montana.” Watkins Trust, ¶ 21 (emphasis added) (citing Rhode v. Adams, 1998 MT 73, ¶¶ 12-13, 288 Mont. 278, ¶¶ 12-13, 957 P.2d 1124, ¶¶ 12-13). According to ALPS, based on this language, “the scope of Add/s legal duty was undecided ... until Watkins Trust was decided on June 8, 2004”; thus, contesting Redies’ claims on the ground that Addy owed no legal duty to Redies “was reasonable as a matter of law.”
¶40 Yet, when ALPS was investigating and negotiating Redies’ claims in 2001 and 2002, the foregoing “first impression” language of Watkins Trust did not yet exist. The reasonableness of ALPS’s decision to contest Redies’ claims on the ground that Addy owed her no duty must be evaluated within the context of our then-existing precedents, not something we said in a later decision. See Graf v. Continental Western Ins. Co., 2004 MT 105, ¶ 17, 321 Mont. 65, ¶ 17, 89 P.3d 22, ¶ 17 (“The [Unfair Trade Practices Act] standards focus on what the insurer knows at a particular point in time-before trial, during the investigative settlement stage.”).
¶41 Likewise, just because the scope of Addy’s duty may have been “undecided” in 2001 and 2002, it does not necessarily follow that ALPS’s decision to contest Redies’ claims against Addy was reasonable. It seems that in ALPS’s view, a legal theory for contesting a claim is reasonable per se so long as this Court has not yet explicitly rejected it-even if the theory has been called into serious question by then-existing precedents. We reject this interpretation of the statutory scheme, which turns reasonableness on its head and runs contrary to the public policy of Montana to encourage settlement and avoid unnecessary litigation, see Watters, ¶ 57. To be sure, a tort defendant and his or her insurer should, as ALPS submits, be able to test the scope and boundaries of legal duties, remedies, and defenses; but, at the same time, an insurer should not be immune from liability under § 33-18-242(1), MCA, as Redies points out, simply because this Court had not yet explicitly rejected the legal proposition on which the insurer relied in the underlying action. This is precisely the point of evaluating the “reasonableness” of the insurer’s proffered defense. Cf. Graf, ¶¶ 16-18 (rejecting the proposition that a defense verdict in the underlying action provides, as a matter of law, a reasonable basis defense to a subsequent Unfair Trade Practices Act (“UTPA”) claim, since such a rule would promote the claim settlement abuses the UTPA was designed to deter-e.g., by encouraging insurers to obtain defense verdicts in the underlying suit at any cost).
¶42 In this regard, although Watkins Trust was the first instance in which we explicitly held that an attorney owed a duty to a nonclient third party-specifically, we held that a drafting attorney owes a duty to nonclient beneficiaries named in the drafted instrument, see Watkins Trust, ¶¶ 21-22-our decision was not the watershed event suggested by ALPS and the District Court. Rather, our holding was an extension of existing precedents. Indeed, we observed that
a finding of duty is consistent with existing Montana law. This Court has noted that a multi-factor balancing test adopted in other jurisdictions may be appropriate in deciding the duty owed by attorneys to nonclients in estate planning. Rhode, ¶ 17. Additionally, we have recognized liability to nonclients in other professional contexts. See, e.g., Thayer v. Hicks (1990), 243 Mont. 138, 793 P.2d 784 (accounting firm liable to nonclient); Jim’s Excavating Serv. v. HKM Assoc. (1994), 265 Mont. 494, 878 P.2d 248 (professional engineer liable to nonclient); Turner v. Kerin & Assoc. (1997), 283 Mont. 117, 938 P.2d 1368 (professional engineer liable to nonclient).
Watkins Trust, ¶ 22 (emphasis added).
¶43 Accordingly, the determinative question is whether this progression in our case law toward holding an attorney liable to certain nonclients had, by the time Redies stated her claims against Addy, reached the point at which ALPS’s assertion that he owed her no duty no longer constituted “a reasonable basis in law” for contesting her claim.
¶44 The starting point for answering this question is Rhode, in which we signaled that an attorney may owe a duty to nonclients in some contexts. Specifically, after noting that we had not before discussed “whether an attorney owes a duty to third persons to exercise care in the performance of services for his or her client,” Rhode, ¶ 12, we went on to state that such a duty may arise in some contexts, but not where the attorney is representing a client in adversarial proceedings (as was the case in Rhode), Rhode, ¶ 17. We further indicated that “a multi-factor balancing test, such as that set out in [Trask v. Butler, 872 P.2d 1080, 1083 (Wash. 1994)], may be effective when used to address the duties of attorneys in transactional matters or estate planning and probate practice.” Rhode, ¶ 17. Thus, as of our decision in Rhode in 1998, it was clear that an attorney may owe a duty to nonclients in some nonadversarial contexts and that the Trask multi-factor balancing test may be effective for ascertaining the existence of such a duty.
¶45 Redies suggests that the question of whether an attorney owes a duty to nonclients was not as unsettled as the foregoing language in Rhode implies. She argues that “[l]ong before any claim was asserted against Mr. Addy, this Court had effectively discarded the outdated ‘privity of contract’ concept.” In support of this proposition, she directs our attention to the three other cases identified in ¶ 22 of Watkins Trust-namely, Thayer, Jim’s Excavating, and Turner — in which we recognized the existence of a duty to nonclients in a number of professional contexts.
¶46 In Thayer, we addressed the extent to which an accountant owes a duty of care to third parties with whom he is not in privity. After discussing three different approaches by which courts determine the extent of an accountant’s duty of care to nonclients, Thayer, 243 Mont. at 144-46, 793 P.2d at 788-89, we held that “an accountant may owe a duty of care to third parties with whom he is not in privity of contract,” but “this duty exists only if the accountant actually knows that a specific third party intends to rely upon his work product and only if the reliance is in connection with a particular transaction or transactions of which the accountant is aware when he prepares the work product,” Thayer, 243 Mont. at 149, 793 P.2d at 791.
¶47 Next, in Jim’s Excavating, we addressed whether an engineering firm could be held liable to a contractor with whom it was not in contractual privity. HKM, the engineering firm, argued that an engineer only has a duty to the party with whom it has contracted. Jim’s Excavating, 265 Mont. at 502, 878 P.2d at 252. We rejected this contention, noting that HKM’s argument “ignores the established law in Montana abolishing the requirement of privity of contract to maintain an action in tort.” Jim’s Excavating, 265 Mont. at 502, 878 P.2d at 253 (citing Hawthorne v. Kober Const. Co., Inc., 196 Mont. 519, 640 P.2d 467 (1982), and Tynes v. Bankers Life Co., 224 Mont. 350, 730 P.2d 1115 (1986)). We went on to hold that “a third party contractor may successfully recover for purely economic loss against a project engineer or architect when the design professional knew or should have foreseen that the particular plaintiff or an identifiable class of plaintiffs were at risk in relying on the information supplied.” Jim’s Excavating, 265 Mont. at 506, 878 P.2d at 255.
¶48 Finally, in Turner, we considered whether one who succeeds to a mortgagee’s security interest in real property could state a cause of action against a third party for damages to that property which impair his or her security interest. Based on a passage from Prosser, The Law of Torts § 93 (4th ed., West 1971), which we had also relied on in Jim’s Excavating, we reasoned that “by contracting with the owners to perform engineering work on the property, Kerin placed itself in a relation toward any party who held a security interest in the property that the law imposed upon him an obligation, sounding in tort and not in contract, to act in such a way that the security interest would not be injured.” Turner, 283 Mont. at 126, 938 P.2d at 1374. Accordingly, we held that “a person who, subsequent to the damage to the property, acquires a pre-existing security interest in the property can maintain a cause of action for impairment of that security interest to the extent of the outstanding debt.” Turner, 283 Mont. at 127, 938 P.2d at 1374.
¶49 Relying on these cases, Redies asserts that this Court “abolished the old ‘privity of contract’ requirement that formed the basis of ALPS’ ‘no privity’ defense.” Similarly, Justice Nelson’s Dissent points out that this Court called the privity concept into doubt twenty years before ALPS relied on this defense to Redies’ claims against Addy. Specifically, we stated in Hawthorne that “[w]e view privity to be a concept having proper application in the area of contract law. There seems to be no sound public policy argument for extending its application to tort.” Hawthorne, 196 Mont. at 523, 640 P.2d at 469.
¶50 We agree with both Redies and Justice Nelson’s Dissent that Hawthorne, Tynes, Thayer, Jim’s Excavating, Turner, and Rhode reflected the demise of the “privity of contract” requirement historically imposed upon a plaintiff seeking to hold a defendant liable for professional malpractice. Indeed, we indicated in Jim’s Excavating that this requirement had been “abolish[ed].” See Jim’s Excavating, 265 Mont. at 502, 878 P.2d at 253 (referring to “the established law in Montana abolishing the requirement of privity of contract to maintain an action in tort”). However, none of these cases abolished the requirement that a plaintiff in a professional malpractice action first prove that the defendant owed her a duty of care, as Justice Nelson’s Dissent ably demonstrates with respect to attorneys. See ¶¶ 86-87 (citing Carlson v. Morton, 229 Mont. 234, 238, 745 P.2d 1133, 1136 (1987); Lorash v. Epstein, 236 Mont. 21, 24, 767 P.2d 1335, 1337 (1989); Merzlak v. Purcell, 252 Mont. 527, 529, 830 P.2d 1278, 1279 (1992); and Hauschulz v. Michael Law Firm, 2001 MT 160, ¶ 11, 306 Mont. 102, ¶ 11, 30 P.3d 357, ¶ 11). In other words, the mere absence of a privity requirement does not render a professional liable for the negligent performance of a contract to any and all third parties. To the contrary, in recognizing tort liability in the absence of privity, we have concomitantly limited the class of plaintiffs to identifiable third parties (typically, those who are known or are reasonably foreseeable by the professional, see Thayer, 243 Mont. at 149, 793 P.2d at 791; Jim’s Excavating, 265 Mont. at 506, 878 P.2d at 255).
¶51 In this regard, Justice Nelson’s Dissent points out that by 2001, at least three different approaches existed in our case law for ascertaining the duty of care owed by a professional to third parties-namely, the rule enunciated by Prosser and applied by this Court in Hawthorne, Tynes, Jim’s Excavating, and Turner-, the approach we took in Thayer-, and the Trask multi-factor balancing test set forth in Rhode. See ¶¶ 89-92. Yet, we had not adopted any of these approaches with respect to attorneys specifically. Moreover, we signaled in Rhode that the Trask test, in particular, may be effective for this purpose. Rhode, ¶ 17.
¶52 Thus, the circumstances and extent of any duty owed by an attorney to a nonclient was not nearly as well-defined as Redies and Justice Nelson’s Dissent suggest it was during the period in which ALPS contested Redies’ claims against Addy. We acknowledged in Rhode that we had never before addressed whether an attorney, specifically, owes a duty to third persons to exercise care in the performance of services for his or her client. Rhode, ¶ 12. And we left this issue unresolved with respect to nonadversarial situations, stating merely that “a multi-factor balancing test, such as that set out in Trask, may be effective when used to address the duties of attorneys in transactional matters or estate planning and probate practice.” Rhode, ¶ 17 (emphasis added). Given this equivocal language, the question of whether an attorney retained by a conservator owed a duty to the protected person was unsettled in 2001 and 2002. Notably, Redies concedes as much by pointing out that until Watkins Trust, there was no “legally conclusive” law in Montana establishing that a lawyer retained by a conservator does or does not have a duty to the protected person. We therefore reject the contention that the law in Montana was decidedly against ALPS’s position.
IV. Application
¶53 As explained above, it was clear as of our decision in Rhode that an attorney may owe a duty to nonclients in some nonadversarial contexts and that the Trask multi-factor balancing test may be effective for ascertaining the existence of such a duty. Not surprisingly, therefore, Addy (represented by ALPS) addressed the Trask test at length in his motion for summary judgment in Redies v. Addy. After pointing out that a plaintiff in a legal malpractice action “must establish that the professional owed him a duty of care,” he acknowledged that “[s]ome courts ... have extended the duty of an attorney to certain non-clients.” He then asserted that “[a]lthough the Supreme Court has not unequivocally adopted the multi-factor balancing test, it is clear that even if it was applied, there would be no liability to Janet Redies under these circumstances.”
¶54 In Rhode, we listed the six factors which comprise the Trask balancing test: (1) the extent to which the transaction was intended to affect the plaintiff; (2) the foreseeability of harm to the plaintiff; (3) the degree of certainty that the plaintiff suffered injury; (4) the closeness of the connection between the defendant’s conduct and the injury; (5) the policy of preventing future harm; and (6) the extent to which the profession would be unduly burdened by a finding of liability. See Rhode, ¶ 14. Applying these factors, Addy argued that Redies was an “incidental beneficiary” of his attorney-client relationship with Cosner; that he “had no authority to act on his own with regard to [Redies’ estate]” and, thus, Redies’ action should be directed against Cosner, the conservator, who was “[t]he only person with that legal authority”; and that public policy considerations counseled against finding a duty in this case because “[t]o hold Mr. Addy had duties to Janet Redies in addition to those of Mr. Cosner would create an irresolvable conflict of interest and division of loyalties for him.”
¶55 Given our decision in Watkins Trust, the foregoing argument is now of dubious merit. However, we cannot say that it was unreasonable at the time it was made. Given that we had signaled in Rhode that the Trask multi-factor balancing test may be effective for ascertaining the existence and scope of the duty owed by an attorney to nonclients in nonadversarial contexts, it was reasonable for ALPS to apply this test to the factual scenario at hand. Accordingly, we conclude that ALPS had “a reasonable basis in law” under § 33-18-242(5), MCA, for contesting Redies’ claims against Addy.
¶56 Redies points out that the authors of the December 4, 2001 evaluation commissioned by ALPS “discounted” the privity defense before ALPS denied Redies’ claims and “accurately predicted” that this defense would not prevail. Thus, she argues, it was unreasonable for ALPS to contest her claims against Addy on the ground that he owed her no duty.
¶57 The legal advice which informed ALPS’s decision to contest Redies’ claim is relevant to whether that decision was grounded in “a reasonable basis in law.” Had ALPS received advice that Addy owed Redies a duty under the existing law, this would be a different case. As it is, however, the evaluation authors’ ultimate assessment was that “sufficient questions exist as to the issue of liability so that we believe it is not reasonably clear.” And on the privity issue in particular, they stated that “absent a direct attorney-client relationship between [Redies] and [Addy], no action should be allowed.” Their acknowledgement that “there have been challenges in the past as to this privity requirement” and their speculation that “our court may ... simply find[] that the relationship between the protected person and the conservator’s attorney [is] close enough to allow suit” did not render ALPS’s subsequent argument based on the Trask test unreasonable under § 33-18-242(5), MCA.
¶58 We therefore affirm the District Court’s conclusion that ALPS had a reasonable basis in law for contesting Redies’ claims against Addy. We now turn to the question of whether, given this outcome, any genuine issues of material fact remain.
V. Factual Issues
¶59 Redies asserts that a number of factual issues precluded granting summary judgment in this case. First, as described earlier, the District Court reasoned that “an adversarial situation” existed between Redies and Uerling and, thus, that Addy did not owe Redies a fiduciary duty dining the months immediately following her accident. Redies maintains that whether any of the relationships relevant to the issues herein were “adversarial” presents a factual issue. Second, the District Court also reasoned that Redies’ interests “should have been protected by her own attorney,” which presumably is a reference to Dunaway. Redies asserts that whether Dunaway acted as her attorney during that time period (aside from Dunaway’s brief role as attorney ad litem) and whether Cosner relied on Dunaway for advice in managing the conservatorship were issues of fact precluding summary judgment. Finally, Redies argues that whether Addy acted only as the attorney for Cosner, as conservator, or whether, by his statements and actions, he created an attorney-client relationship with Redies and her estate presents a factual issue. However, given our conclusion that ALPS had a reasonable basis in law for contesting Redies’ claims against Addy, resolution of these factual issues is unnecessary.
¶60 With respect to Redies’ “pretext” claim, she points out that the authors of the December 4, 2001 evaluation commissioned by ALPS stated that they “do not put a great deal of stock in this privity defense.” Thus, she argues, there is a factual dispute over “whether ALPS actually relied upon the ‘no privity’ defense, or whether that defense was asserted primarily to delay and increase the expense in prosecuting Ms. Redies’ legitimate claim.” Redies raised this issue in the District Court in response to ALPS’s summary judgment motion; however, the court did not rule on it explicitly. Nevertheless, we observe that one of the theories advanced by ALPS in the underlying suit (on Addy’s behalf) came straight out of Rhode, and, as explained above, it was reasonable for ALPS to apply this precedent (and the Trask multi-factor balancing test recited in Rhode) to the factual scenario at hand. Thus, we conclude that Redies’ “pretext” claim lacks merit.
¶61 Redies also argues that, irrespective of our decision with respect to her § 33-18-201(6) claim, a trial is still necessary on her § 33-18-201(4) claim. She points out that in Shilhanek v. D-2 Trucking, Inc., 2003 MT 122, 315 Mont. 519, 70 P.3d 721, we held that the insurer had a reasonable basis in law for asserting that it was entitled to condition its payment of policy limits on the plaintiffs’ providing it with a release of all claims against its insureds, Shilhanek, ¶ 30, but that a factual issue remained as to whether the insurer had refused to make advance payments to the plaintiffs to cover their medical expenses without first conducting a reasonable investigation, Shilhanek, ¶¶ 34, 36-37. Thus, she maintains, even if ALPS had a reasonable basis in law for contesting her claims against Addy, a factual issue remains as to whether ALPS refused to pay her claims “without conducting a reasonable investigation,” § 33-18-201(4), MCA.
¶62 Redies misapprehends our disposition of the subsection (4) and subsection (6) claims in Shilhanek. As ALPS points out, the question of whether the insurer had violated its duty to make advance payments of medical expenses-a duty the insurer did not dispute it had — was separate from the question of whether it had a reasonable basis in law for refusing to pay policy limits without a release. Compare Shilhanek, ¶¶ 24-31, with Shilhanek, ¶¶ 34-37. In the case at hand, by contrast, the alleged subsection (6) violation (that ALPS “neglect[ed] to attempt in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability ha[d] become reasonably clear”) and the alleged subsection (4) violation (that ALPS “refuse[d] to pay claims without conducting a reasonable investigation based upon all available information”) are intertwined. At the time ALPS denied Redies’ claims, the record discloses that it had investigated the facts and obtained an evaluation of its options under the law applicable to those facts. This research, ultimately, formed the basis for Addy’s defense in the underlying action-namely, that under Rhode and the Trask test he did not owe a duty to Redies. Thus, the question of whether ALPS conducted a reasonable investigation before refusing to pay Redies’ claims is resolved by ALPS’s “reasonable basis in law” defense under § 33-18-242(5), MCA.
CONCLUSION
¶63 The District Court correctly concluded that ALPS had a reasonable basis in law for contesting Redies’ claims against Addy and that there were no genuine issues as to any material facts. Accordingly, we affirm the District Court’s conclusion that ALPS was entitled to a judgment as a matter of law.
CHIEF JUSTICE GRAY, JUSTICES WARNER and MORRIS concur.
All of the proceedings discussed herein took place in the District Court for the Thirteenth Judicial District, Yellowstone County.
These and other significant decisions reached by Addy, Cosner, Uerling, and Dunaway at the September 6, 1995 meeting were memorialized in a letter written by Addy to Cosner on September 7, 1995.
Section 72-5-427(3)(w), MCA, provides as follows: “A conservator, acting reasonably in efforts to accomplish the purpose for which he was appointed, may act without court authorization or confirmation to... employ persons, including attorneys, auditors, investment advisors, or agents, even though they are associated with the conservator, to advise or assist him in the performance of his administrative duties; act upon their recommendation without independent investigation; and instead of acting personally, employ one or more agents to perform any act of administration, whether or not discretionary. . ..” (Paragraph break omitted.)
As discussed earlier, Judge Baugh reached the opposite conclusion in the underlying action (Redies v. Addy), determining that “it is appropriate for the Court to apply the Trask factors to the present case.” Likewise, Judge Baugh determined in the underlying action that “when Mr. Addy rendered legal advice to Mr. Cosner, there was no conflict of interest between Mr. Addy, Mr. Cosner, and Ms. Redies.” The contrary rulings by Judge Baugh and Judge Todd implicate the doctrine of res judicata; however, though Redies mentions “issue preclusion” in her opening brief, she does not develop the issue. Thus, we do not address it further. See In re Marriage of McMahon, 2002 MT 198, ¶ 6, 311 Mont. 175, ¶ 6, 53 P.3d 1266, ¶ 6 (“[W]e will not consider unsupported issues or arguments.”); M. R. App. P. 23(a)(4).
“Privity of contract” refers to “[t]he relationship between the parties to a contract, allowing them to sue each other but preventing a third party from doing so.” Black’s Law Dictionary 1217 (Bryan A. Garner ed., 7th ed., West 1999).
Given this conclusion, we deem Redies’ claim that the District Court abused its discretion by deciding ALPS’s motion for summary judgment without ruling on her motion under M. R. Civ. P. 56(f) and without affording her “a fair opportunity to complete discovery” moot.
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On October 17, 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 suspended sentence, for the offense of Criminal Mischief, 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 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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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Douglas Faw appeals from a Thirteenth Judicial District Court, Yellowstone County, final decree of dissolution of Sydne and Jack Heidema’s marriage. We affirm the District Court.
¶2 The issue on appeal is whether the District Court erred in precluding Faw from exercising his right to participate in a dissolution action by entering a final dissolution decree ending the Heidemas’ marriage.
BACKGROUND
¶3 Douglas Faw was injured while employed as a ranch hand for brothers Jack and John Heidema in the Heidemas’ ranch operations. The Heidemas did not have workers’ compensation insurance coverage at the time Faw was injured. Paw’s medical expenses as a result of his injury exceed $1,000,000. Faw filed suit against Jack and John Heidema and the Heidema Partnership for negligence and failure to provide workers’ compensation coverage. He later filed suit against Jack and John and the newly-created Heidema Ranch Limited Partnership for fraudulent transfer of assets into the new partnership. Faw alleged that the limited partnership was created to protect the Heidemas’ assets against the pending lawsuits.
¶4 In May 2005, Sydne Kay Heidema filed a petition for dissolution of marriage from Jack Heidema. Faw alleged that Sydne and Jack’s dissolution was a sham because the marriage was not irretrievably broken and the dissolution was being sought only to protect Sydne’s inchoate interest in the marital estate against the pending lawsuits. He contended that the Heidemas’ attorney in the tort actions told them that a dissolution would be one way to protect the wives’ interest in the Heidema assets. Incidentally, Sydne’s sister-in-law, Connie Heidema, filed a petition for dissolution against John Heidema that same month. Faw filed a motion to intervene as a matter of right in the dissolution action. He asserted that he was not interested in receiving any specific property from the marital assets, but rather, that the petition for dissolution was not legitimate and therefore should not be granted. He also requested that a receiver be appointed to take control of the marital estate to prevent its dissipation.
¶5 The District Court granted Faw’s motion to intervene pursuant to M. R. Civ. P. 24. The court stated that the timing of the Heidema wives’ dissolution petitions, along with Faw’s assertion that they were advised that dissolution could protect their inchoate interest in the marital estate, warranted permissive intervention in order for the court to adequately address Faw’s interests. Faw’s response to the dissolution petition deified that the marriage was irretrievably broken.
¶6 When Sydne and Jack failed to provide preliminary declarations of disclosure to Faw, Faw filed a motion to compel the declarations, stating he did not waive the exchange. Jack objected to the motion, stating that Faw was attempting to obtain discovery for his tort actions by intervening in the dissolution action, and the asset disclosures had nothing to do with Faw’s assertion that the marriage was not irretrievably broken and the dissolution was being entered into to protect assets. The District Court granted Faw’s motion to compel the disclosures.
¶7 After nearly a month went by and Sydne and Jack failed to provide the preliminary disclosures, Faw filed a motion requesting the court to set a deadline for them to provide the disclosures. The court ordered Sydne and Jack to provide the disclosures by November 17, 2005. However, prior to that date, Sydne and Jack entered into a settlement agreement and asked the court to enter the dissolution decree. Sydne served her preliminary and final declaration of disclosure and declaration of income and expenses, and two days later, Jack produced his disclosure which was identical to Sydne’s. On November 9, 2005, the District Court entered a final decree of dissolution over Faw’s objections. Faw appeals.
STANDARD OF REVIEW
¶8 We review a district court’s conclusions of law to determine whether its interpretation of the law is correct. Shilhanek v. D-2 Trucking, Inc., 2000 MT 16, ¶ 24, 298 Mont. 101, ¶ 24, 994 P.2d 1105, ¶ 24 (citation omitted).
DISCUSSION
¶9 Did the District Court err in precluding Faw from exercising his right to participate in a dissolution action by entering a final dissolution decree ending the Heidemas’ marriage?
¶10 Faw based his original motion to intervene on M. R. Civ. P. 24, asserting that he was entitled to intervene as a matter of right because he claimed an interest relating to property in the marital estate and that he was so situated that distribution of the marital estate in the dissolution would impede or impair his ability to protect his interests. He further stated that his interests were not protected by the existing parties in the dissolution action. The District Court granted Faw’s motion to intervene, stating that permissive intervention was warranted based on the timing of the Heidema wives’ dissolution petitions, along with Faw’s assertion that they were advised that dissolution could protect their inchoate interest in the marital estate. The court further stated that it would “not be able to adequately address the interests of the proposed intervening party without his participation in the dissolution proceedings.”
¶11 In this case, it is questionable whether the District Court should have allowed Faw to intervene in the first place. The Heidemas have not, however, appealed from that order. Although Faw had, and still has, pending lawsuits against Jack, John, and their partnerships, he does not yet have a judgment. Thus, he has not made a prima facie showing of an actual interest in the Heidemas’ property. See M. R. Civ. P. 24(a)(2); Anniballi v. Anniballi, 255 Mont. 384, 387, 842 P.2d 342, 344 (1992). Secondly, as demonstrated by the fact that Faw has filed lawsuits against Jack, John, and their partnerships, Faw has other avenues available for protecting his alleged interest in the property. See M. R. Civ. P. 24(a)(2); Anniballi, 255 Mont. at 386, 842 P.2d at 343. Finally, in determining that permissive intervention was warranted, the District Court failed to determine that Faw had a question of law or fact in common with the main action. See M. R. Civ. P. 24(b)(2); Shilhanek, ¶¶ 47-48. Faw now asserts that the questions of facts or law in common between his claim and the dissolution action are that both claims are concerned with the size of the marital estate, the dissipation of assets by the parties, and the equitable distribution of marital assets between Jack and Sydne.
¶12 Appropriate or not, the court did allow Faw to intervene; thus, the question now is whether Faw was prejudiced by entry of the dissolution decree before the parties responded to Faw’s discovery requests regarding asset disclosure. We hold that he was not.
¶13 Marriage arises out of a civil contract between a man and a woman, and requires the consent of both parties. Section 40-1-103, MCA. When one or both of those parties finds the marriage is irretrievably broken, that party has a basis for dissolution. Section 40-4-101, MCA. Dissolutions are statutory proceedings. The questions to be determined in a dissolution action are whether the marriage is irretrievably broken, and if so, how to allocate marital assets between the parties and provide maintenance and child support if applicable. Sections 40-4-107, 40-4-202, 40-4-203, 40-4-204, MCA. In a dissolution proceeding, the only proper parties are the spouses seeking to be divorced. Nielson v. Thompson, 982 P.2d 709, 712 (Wyo. 1999) (citing In re Marriage of Soriano, 722 P.2d 132, 133 (Wash. App. 1986)).
¶14 Because Faw is not a party to the marriage, he has no standing to assert that the marriage is or is not irretrievably broken. Furthermore, Faw’s request for relief, that assets be entrusted to third parties, exceeds the jurisdiction of the court. In a dissolution proceeding, the court has authority to apportion marital assets only between the parties. Thus, even if the court committed error in entering the dissolution decree before Faw received the disclosures, such error was harmless because the court could not grant any relief to Faw in the dissolution proceeding. Faw must pursue, and is pursuing, the other remedies he has available to him.
¶15 We affirm the District Court.
CHIEF JUSTICE GRAY, JUSTICES COTTER, NELSON and MORRIS concur.
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On September 6,2005, the defendant was sentenced to the following: Count I: Fifty (50) years in the Montana State Prison, with twenty-five (25) years suspended, for the offense of Incest, a felony; Count II: Fifty (50) years in the Montana State Prison, with twenty-five (25) years suspended, to run concurrent to Count I, for the offense of Incest, a felony; and Count III: Five (5) years in the Montana State Prison, to run consecutive with Counts I & II, for the offense of Failure to Register as a Sex Offender, a felony.
DATED this 17th day of March, 2006.
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 Kevin Brown. 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 he 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 January 11, 2006, the defendant was sentenced to the following, for violation of the conditions of a suspended sentence, for the offenses of Theft, all felonies: Count I: Four (4) years in the Montana State Prison; Count II: Ten (10) years in the Montana State Prison; and Count III: Ten (10) years in the Montana State Prison, with five (5) years suspended. These counts shall run consecutive. Counts IV through X: Ten (10) years in the Montana State Prison, on each count, all time suspended, to run concurrent with each other and concurrent with the sentences received on Counts I, II and III.
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 John Smith. 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 fiirther 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 incarceration sentence imposed by the District Court is clearly excessive in light of the magnitude of the amount of victim restitution owing and the Defendant’s concomitant obligation to pay victim restitution. Since the original judgment, while on probation, the defendant has made restitution payments of nearly 45% of the total amount owed. The modification will afford the defendant a greater opportunity to continue making monthly payments towards the restitution obligation than would be made while the Defendant is incarcerated.
DATED this 14th day of April, 2006.
Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be amended as follows: Count I: Four (4) years in the Montana State Prison; Count II: Ten (10) years in the Montana State Prison; and Count III: Ten (10) years in the Montana State Prison. The sentence for Count III shall be completely suspended. Counts I, II, and III shall run consecutively to one another. Counts IV through X: Ten (10) years in the Montana State Prison, on each count, all time suspended, to run concurrent with each other and concurrent with the sentences received on Counts I, II and III. The conditions and restitution requirements shall remain as imposed in the original sentencing order dated January 19, 2001.
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 8, 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 (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 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 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 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 January 11, 2006, the defendant was sentenced to the following, for violation of the conditions of a suspended sentence, for the offenses of Theft, all felonies: Count I: Four (4) years in the Montana State Prison; Count II: Ten (10) years in the Montana State Prison; and Count III: Ten (10) years in the Montana State Prison, with five (5) years suspended. These counts shall run consecutive. Counts IV through X: Ten (10) years in the Montana State Prison, on each count, all time suspended, to run concurrent with each other and concurrent with the sentences received on Counts I, II and III.
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 John Smith. The state was not represented.
The Defendant having been duly informed of the amended judgment and commitment, and having waived her 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: Count I: Four (4) years in the Montana State Prison; Count II: Ten (10) years in the Montana State Prison; and Count III: Ten (10) years in the Montana State Prison. The sentence for Count III shall be completely suspended. Counts I, II, and III shall run consecutively to one another. Counts IV through X: Ten (10) years in the Montana State Prison, on each count, all time suspended, to run concurrent with each other and concurrent with the sentences received on Counts I, II and III. The conditions and restitution requirements shall remain as imposed in the original sentencing order dated January 19, 2001.
DATED this 1st day of May, 2006.
Hon. G. Todd Baugh, District Court Judge.
|
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CHIEF JUSTICE GRAY
delivered the Opinion of the Court.
¶1 The United States Bankruptcy Court for the District of Montana has certified the following question to this Court pursuant to M. R. App. P. 44:
Under Montana’s liberal construction of exemptions, is a debtor allowed to trace proceeds from the sale of the debtor’s home when the debtor had not filed a homestead declaration prior to selling the home?
We accepted the certified question by order filed on March 22, 2006. For the reasons set forth below, we answer the question “yes, if the homestead is otherwise eligible for exemption pursuant to § 70-32-216, MCA.”
BACKGROUND
¶2 Mary A. Snyder filed a Chapter 7 bankruptcy petition on October 12, 2005. She claims a right to exempt $22,000 in proceeds traceable to the sale of a Bozeman, Montana, home from the bankruptcy estate, under Montana’s statutory homestead exemption.
¶3 Snyder had sold the home for which she claimed the homestead exemption in February of 2005, some six months before she filed her bankruptcy petition. In the declaration of homestead she filed on September 29,2005, she stated she resided at the home but she listed her address as one other than that for which she claimed the homestead exemption. For purposes of our consideration of the certified question, Snyder has stipulated that, at the time she filed her declaration of homestead, she “resided at” a different address than the address for which she was filing the homestead declaration. The bankruptcy trustee claims the homestead exemption is invalid.
¶4 The bankruptcy court determined no controlling appellate decision, constitutional provision or Montana statute answers the question of whether Snyder may claim the homestead exemption. For that reason, the bankruptcy court certified the question of law to this Court.
DISCUSSION
¶5 Under Montana’s liberal construction of exemptions, is a debtor allowed to trace proceeds from the sale of the debtor’s home when the debtor had not filed a homestead declaration prior to selling the home?
¶6 The filing of a bankruptcy petition under Title 11 of the United States Code creates an estate consisting of “all legal or equitable interests of the debtor in property as of the commencement of the case.” 11 U.S.C. § 541(a)(1). In a Chapter 7 bankruptcy, property deemed an asset of the bankruptcy estate may be administered by the bankruptcy trustee for the benefit of the creditors unless the debtor is entitled to remove the property from the bankruptcy estate through the exemption process. See 11 U.S.C. §§ 323, 522, 541.
¶7 Property which may be exempted from the bankruptcy estate is set forth at 11 U.S.C. § 522. Montana has exercised its option under 11 U.S.C. § 522(b)(3)(A) to opt out of the federal exemption plan, however, and grant bankruptcy exemptions based on state law. Exemptions allowed under Montana law include the Montana homestead exemption set forth in Chapter 32 of Title 70, MCA. See § 31-2-106(1), MCA.
¶8 Montana law has long allowed a homestead exemption for “the dwelling house or mobile home, and all appurtenances, in which the claimant resides, and the land, if any, on which the same is situated, selected as provided in this chapter.” Sections 70-32-101 and -201, MCA. The maximum amount allowed as a homestead exemption has been raised several times over the years; since 2001, the maximum is $100,000. Section 70-32-104, MCA. To obtain the benefit of the homestead exemption, the homeowner must file a declaration of homestead with the county clerk and recorder’s office. The declaration must contain a description of the premises and a statement that the declarant resides there and claims it as a homestead. See §§ 70-32-105, -106 and -107, MCA. Under the homestead exemption, up to $100,000 in proceeds of the sale of a homestead are protected for 18 months after a judgment execution sale. See § 70-32-213, MCA.
¶9 In 1987, the Montana Legislature enacted general revisions to laws relating to property exempt from execution. 1987 Mont. Laws 595. Section 6 of those revisions, which is codified as § 70-32-216, MCA, provides for protection of proceeds traceable to property. It states:
Tracing homestead proceeds. (1) If property or a part of property that could have been claimed as an exempt homestead has been sold or taken by condemnation, as provided in Title 60, chapter 4, or Title 70, chapter 30, or has been lost, damaged, or destroyed and the owner has been indemnified for the property, the owner is entitled for 18 months to exemption of the proceeds that are traceable.
(2) Proceeds are traceable under this section by application of the principles of first-in first-out, last-in first-out, or any other reasonable basis for tracing selected by the judgment debtor.
Section 70-32-216, MCA.
¶10 This provision changes Montana’s traditional homestead exemption in two significant ways. First, it expands the kinds of proceeds which maybe protected by the exemption. While § 70-32-213, MCA, only protects proceeds from a judgment execution, § 70-32-216, MCA, also protects proceeds from properties which have been “sold or taken by condemnation ... or had been lost, damaged or destroyed[.]” (Emphasis added.) Second, it provides protection for traceable proceeds from such properties if the properties “could have been claimed as an exempt homestead” (emphasis added) at the time of disposal. This statutory change created the right to claim a homestead exemption, in the delineated circumstances, after the property has been disposed of, and after the person claiming a homestead exemption has vacated the property.
¶11 In arguing against allowing Snyder’s claimed homestead exemption, the bankruptcy trustee relies upon another statutory provision which the 1987 Montana Legislature did not amend when it enacted § 70-32-216, MCA. Section 70-32-106, MCA, requires that “[t]he declaration of homestead must contain a statement that the person making it is residing on the premises[.]” That requirement does not appear to allow for a declaration of homestead as to premises where the declarant no longer resides.
¶12 In this respect, while §§ 70-32-106 and -216, MCA, do not expressly conflict, they are inconsistent. We must resolve that inconsistency.
¶13 As Snyder points out, the Montana Constitution directs the Montana Legislature to enact liberal homestead and exemption laws. See Mont Const. art. XIII, § 5. As she farther points out, exemption laws should be liberally construed in the debtor’s favor. See, e.g., In re Zimmermann, 2002 MT 90, ¶ 15, 309 Mont. 337, ¶ 15, 46 P.3d 599, ¶ 15 (citation omitted). Moreover, when interpreting several provisions, we must adopt a construction, if possible, which gives effect to all. Section 1-2-101, MCA. Applying these rules of statutory construction, we conclude that while the statement required in a declaration of homestead pursuant to § 70-32-106, MCA, does not reflect the possibility that a person may no longer reside on a premises which nevertheless maybe claimed as a homestead pursuant to § 70-32-216, MCA, that in itself does not invalidate a homestead declaration filed under § 70-32-216, MCA. We invite the Legislature’s attention to this inconsistency.
¶14 The answer to the certified question is “yes, if the homestead is otherwise eligible for exemption pursuant to § 70-32-216, MCA.”
JUSTICES NELSON, WARNER, MORRIS and RICE concur.
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On December 2, 2005, for violation of the conditions of a suspended sentence, the defendant was sentenced to the following: Count I: A commitment to the Department of Corrections for a term of ten (10) years, with five (5) years suspended, for the offense of Sexual Intercourse Without Consent, a felony; and Count II: A commitment to the Department of Corrections for a term of ten (10) years, with five (5) years suspended, for the offense of Sexual Intercourse Without Consent, a felony, to run concurrently with Count I.
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 Melody Brown. 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 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).
DATED this 17th day of March, 2006.
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 6th 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 17, 2006, the defendant was sentenced to five (5) years in the Montana State Prison for the offense of Charge I: Assault on a Minor, 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 Mark McLaverty. The state was represented by William Fullbright, who appeared by videoconference.
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 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.
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 one hundred (100) years in the Montana State Prison, with fifteen (15) years suspended, for the offense of Deliberate Homicide, a felony. The defendant shall not be eligible for parole until he has served twenty (20) years in prison.
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 appeared by videoconference from Crossroads Correctional Center and was represented by Kenneth Olson. The state was represented by Brandt Light.
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 January 11, 2006, the defendant was sentenced to a commitment to the Department of Corrections for a term of five (5) years, with two (2) years suspended, for the offense of Criminal Possession of Dangerous Drugs (Methamphetamine), 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 Vincent Vanderhagen. 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.
Chairperson, Hon. John W. Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
|
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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.
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 Mathew Stevenson. The state was represented by George Corn who appeared via videoconference.
Before hearing the application, counsel for the defendant advised the Sentence Review Division that he recently received the sentencing transcripts and requires additional time to prepare for the 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 hearings in 2007. This will be the final continuance granted in this matter.
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 7, 2005, the defendant was sentenced to the following: Count I: One hundred (100) years, with a weapons enhancement of ten (10) years, in the Montana State Prison, for the offense of Deliberate Homicide, a felony; and Count II: One hundred (100) years, with a weapons enhancement of ten (10) years, in the Montana State Prison, for the offense of Accountability for Deliberate Homicide, a felony. The sentence under Count I, the enhancement sentence for the use of a weapon under Count I, the sentence under Count II and the enhancement sentence for the use of a weapon under Count II shall all be served consecutively.
DATED this 17th day of March, 2006.
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 Chuck Watson. The state was represented by Marty Lambert.
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.
Ride 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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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 Ekalaka Unified Board of Trustees and Superintendent of Ekalaka Public Schools Wade Northrop (collectively the School District) appeal from the judgment and order of the First Judicial District Court, Lewis and Clark County, affirming the Final Order of the Board of Personnel Appeals (BOPA), determining that the School District had committed unfair labor practices. We affirm.
¶2 We review the following issue on appeal:
¶3 Was the District Court correct in affirming the Board of Personnel Appeals Final Order?
FACTUAL AND PROCEDURAL HISTORY
¶4 Jeff Savage (Savage) interviewed for a teaching position with the Ekalaka School District in 2003. Superintendent Wade Northrop (Northrop) contacted Savage sometime after the interview to gauge Savage’s interest in the teaching position. Savage informed Northrop that he would need $2,000.00 for moving expenses if he were to relocate to Ekalaka for the teaching position. Northrop agreed to deliver a $2,000.00 check to Savage when Savage visited Ekalaka to look at the school and the community. Northrop directed the School District clerk to issue the check and Northrop then personally delivered the check to Savage on June 29,2003. The next day Northrop recommended to the Board of Trustees that the School District formally offer Savage the teaching position. The Board of Trustees adopted the recommendation and issued a teaching contract. Savage signed the contract on July 1, 2003.
¶5 Northrop made another offer of employment to Sherry Roberts (Roberts) on or about July 15, 2003. Roberts also requested moving expenses from Northrop, but Northrop denied her request on the grounds that he could not pay her more than the salary provided in the Collective Bargaining Agreement (CBA). The Board of Trustees later voted to hire Roberts.
¶6 The Ekalaka Teacher’s Association (ETA) filed a charge with BOPA alleging that the School District had failed to bargain in good faith with ETA when the school district agreed to pay Savage $2,000.00. Hearing Officer Anne L. MacIntyre conducted a hearing in the case on August 12,2004, and entered Findings of Fact, Conclusions of Law, and Recommended Order in favor of ETA. The School District filed a Notice of Exception to the Recommended Order. BOPA affirmed the Recommended Order with only minor revisions and issued a Final Order.
¶7 BOPA determined that “[t]he pre-employment incentive paid to Jeff Savage was additional compensation to him and a condition of employment,” and, therefore, was a subject of mandatory bargaining. BOPA continued that “[b]y agreeing to pay the pre-employment incentive to Savage without bargaining with the Ekalaka Teachers’ Association, the Ekalaka Unified Board of Trustees and Wade Northrop unilaterally changed Savage’s compensation under the collective bargaining agreement, engaging in direct dealing with Savage.” BOPA concluded that the School District had committed an unfair labor practice in violation of § 39-31-401(5), MCA.
¶8 The School District petitioned the District Court for judicial review on July 8, 2005. The District Court affirmed the Final Order, and this appeal followed.
STANDARD OF REVIEW
¶9 We review an agency’s conclusions of law to determine if they are correct. Hofer v. Montana DPHHS, 2005 MT 302, ¶ 14, 329 Mont. 368, ¶ 14, 124 P.3d 1098, ¶ 14. We review agency findings to determine whether they are clearly erroneous. Section 2-4-704(2), MCA. The same standard of review applies to “both the District Court’s review of the administrative decision and our subsequent review of the District Court’s decision.” Hofer, ¶ 14.
DISCUSSION
¶10 The Public Employees Collective Bargaining Act, §§ 39-31-101 through 505, MCA, imposes a duty on Montana public employers to bargain collectively, and in good faith, with their employees on the subjects of “wages, hours, fringe benefits, and other conditions of employment....” Section 39-31-305, MCA. An employer who “refuse[s] to bargain collectively in good faith” commits an “unfair labor practice.” Section 39-31-401(5), MCA.
¶11 The obligation to bargain collectively extends only to the terms and conditions of employment of current employees, and does not extend to the terms and conditions of employment conferred on non-employees. Allied Chem. & Alkali Workers v. Pittsburgh Plate Glass Co., 404 U.S. 157, 164 (1971); see also Star Tribune, 295 N.L.R.B. 543, 547, 131 L.R.R.M. 1404, 1408 (1989) (holding that the terms and conditions placed on applicants are not subjects of mandatory bargaining). The terms and conditions offered by an employer to non-employees still may be subject to mandatory bargaining, however, if they “vitally affect” the terms and conditions of employment for those employees currently working for the employer. Pittsburgh Plate Glass Co., 404 U.S. at 179; Monterey Newspapers, Inc., 334 N.L.R.B. 1019, 1020, 168 L.R.R.M. 1001, 1002 (2001) (noting that wage rates offered to job applicants “vitally affected” current employees and are mandatory subjects of bargaining).
¶12 It is undisputed that Savage was not an “employee” at the time the School District made the $2,000.00 payment to Savage. Thus, we must decide whether the $2,000.00 payment “vitally affected” the terms and conditions of employment of ETA’s members. A condition or benefit conferred on a non-employee “vitally affects” the active employees if it “materially or significantly affects unit employees’ terms and conditions of employment.” Star Tribune, 295 N.L.R.B. at 547, 131 L.R.R.M. at 1409. An indirect or incidental impact on unit employees, to the contrary, is not sufficient to establish a condition or benefit as a subject of mandatory bargaining. Star Tribune, 295 N.L.R.B. at 547, 131 L.R.R.M. at 1409.
¶13 BOPA held that the reasoning in St. Vincent Hospital, 2004 WL 1804091 (N.L.R.B. Div. of Judges) (2004), controls the outcome of this case. In St. Vincent Hospital the employer unilaterally instituted a bonus program intended to attract nurses to apply for hard to fill nursing positions. St. Vincent Hospital. The employer structured the bonus program so that the bonus payments would be paid in increments over the first three years of the applicant’s employment. St. Vincent Hospital.
¶14 The National Labor Relations Board (NLRB) determined that “[a]lthough applicants are not ‘employees’ ... the sign-on ... bonuses paid to the applicants, when they become employees, are wages.” St. Vincent Hospital. The NLRB continued that the employer was “required to bargain regarding the ... bonuses” because “the subject of new hire wages ‘materially or significantly affects unit ‘employees’ terms and conditions of employment.’” St. Vincent Hospital.
¶15 We agree with BOPA that the payment to Savage should have been a subject of mandatory bargaining because the payment represents wages that “‘materially or significantly affect[] unit ‘employees’ terms and conditions of employment’” See St. Vincent Hospital. The $2,000.00 payment to Savage is analogous to the bonuses paid in St. Vincent Hospital. In both cases the employer offered the payments to the applicants because the bargained-for salaries likely would have been insufficient to insure that the applicants would accept the job. St. Vincent Hospital.
¶16 The School District seeks to distinguish the payment to Savage from the bonuses in St. Vincent Hospital. The School District argues that the $2,000.00 that Northrop paid to Savage cannot be considered “wages” because Northrop gave the check to Savage before Savage had signed his employment contract. By contrast, the hospital paid the bonuses in St. Vincent Hospital after the applicants became employees. This distinction, contends the school district, makes it easier to characterize the nurses bonuses as “wages.”
¶17 The School District misplaces its focus on the timing and labeling of the payment. ETA’s bargaining interest in the $2,000.00 payment to Savage derives from its larger interest in establishing a stable wage structure through the process of collective bargaining. See Pittsburgh Plate Glass Co., 404 U.S. at 178. The School District circumvented the collective bargaining process when it bargained directly with Savage and agreed to pay him compensation beyond that agreed by ETA. The unfair labor practice occurred the moment the School District agreed to pay Savage the $2,000.00 without bargaining with ETA. The School District’s subsequent decision to issue a check to Savage before, at the time of, or after, Savage had signed his employment contract is irrelevant to our determination of whether the School District committed an unfair labor practice.
¶18 The School District asserts next that BOPA erred in concluding the $2,000.00 materially or significantly affected current employees because “[t]he record is completely devoid of any evidence establishing that the payment to Savage was made in connection with a tentative offer of employment.” The School District appears to argue that it gifted the $2,000.00 to Savage in order to encourage his good will toward the School District, thereby making him more amenable to any future offers the School District might make.
¶19 We agree with BOPA’s conclusion that “it is inherently incredible that Northrop agreed to give $2,000.00... to an applicant for employment without some understanding ... that he would actually come to work for the districts.” The School District admits that Northrop paid Savage $2,000.00 after Savage had interviewed for the position, after the School District had decided that “Savage was the best candidate for the position,” and after Northrop had informed Savage of the salary and benefits associated with the position. These facts are sufficient to support BOPA’s conclusion that the $2,000.00 related to an offer of employment.
¶20 Roberts’s testimony also supports BOPA’s conclusion that the School District provided the $2,000.00 to Savage in connection with a tentative offer of employment. Roberts testified that Northrop made her a tentative offer of employment before the Board of Trustees gave any official approval. Roberts also testified that she asked for a reimbursement of moving expenses from Northrop, but he declined her request on the ground that he could not pay her more than the salary provided for in the collective bargaining agreement. BOPA reasonably inferred from this testimony that Northrop made a similar tentative offer of employment to Savage and that Northrop had included compensation that went beyond the salary provided in the CBA.
¶21 Finally, the School District points out that, in affirming BOPA’s legal conclusions, the District Court appears to hold that the School District violated the CBA between ETA and the School District. In light of this holding, the School District argues that the District Court should have dismissed this case because ETA had failed to “pursue the mandatory grievance procedure set forth in the CBA.”
¶22 We agree with ETA that the School District bases its argument on a single “inapt phrase” near the end of the District Court’s Decision and Order. The District Court correctly affirmed BOPA’s conclusions of law, noting that the $2,000.00 payment to Savage “vitally affected” the terms and conditions of ETA members’ employment. Any conclusion that the District Court may have made regarding the CBA agreement constitutes harmless error. Hall v. State, 2006 MT 37, ¶ 21, 331 Mont. 171, ¶ 21, 130 P.3d 601, ¶ 21.
¶23 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER, NELSON and RICE concur.
|
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On April 19, 2006, the defendant was sentenced to eight and one half (8 ½) years in the Montana State Prison for violation of the conditions of a suspended sentence for the offense of Count I: Robbery, 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 Peter Lacney. The state was represented by Jennifer Clark who appeared via videoconference.
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).
DATED this 19th day of November, 2006.
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 October 13, 1998, the defendant was sentenced to ten (10) years in the Montana State Prison for the offense of Assault on a Peace Officer, a felony, and ten (10) years in the Montana State Prison for use of a weapon during commission of the offense, to ran consecutively with each other and with Cause No. DC-97-95.
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 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 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).
DATED this 21st day of August, 2006.
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 October 13, 1998, the defendant was sentenced to 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 commission of the offense, to run consecutively with each other and with Cause No. DC-97-108.
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 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 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 16, 2006, the defendant was sentenced to five (5) years in the Montana Women’s Prison, for violation of the conditions of a suspended sentence, for the offense of DUI, 4th or subsequent offense, a felony.
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 James Siegman. The state was represented by Rod Souza.
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 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.
DATED this 14th day of April, 2006.
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. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
|
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On January 26, 2006, the defendant was sentenced to ten (10) years in the Montana State Women’s Prison, for violation of the conditions of a suspended sentence for the offense of Forgery, Common Scheme, a Felony. The sentence shall run concurrently with the sentence imposed in CDC-98-189. The Court recommended the defendant not be eligible for parole until she completes a comprehensive chemical dependency treatment while incarcerated.
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 Moira D’Alton. 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).
DATED this 25th day of October, 2006.
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 6th day of October, 2006.
Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
|
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On March 20, 2006, the defendant was sentenced to Twenty (20) years in the Montana State Prison, to run concurrently with the first twenty (20) years on the Lewis and Clark County cause for violation of the conditions of a deferred sentence for the offense of Burglary, a felony. The court requested that the Defendant be considered for the Boot Camp Program after serving one year (including credit for time served) and that with the completion of Boot Camp, the remainder of the sentence will be suspended.
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.
The Division finds that the reasons advanced for modification are sufficient to hold that the sentence imposed by the District Court is clearly excessive considering the panel’s reduction in sentence of the Defendant’s companion case, Lewis and Clark County Cause No. BDC-2005-303.
Therefore, it is the unanimous decision of the Sentence Review Division that the sentence shall be modified to twenty (20) years in the Montana State Prison, with ten (10) years suspended. This sentence shall run concurrently with Lewis and Clark County Cause Number BDC-2005-303. The Defendant shall be considered for the Boot Camp Program after serving one year (including credit for time served) and that with the completion of Boot Camp, the remainder of the sentence will be suspended. The terms and conditions shall remain as originally imposed.
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 March 20, 2006, the defendant was sentenced to Twenty (20) years in the Montana State Prison, to run concurrently with the first twenty (20) years on the Lewis and Clark County cause for violation of the conditions of a deferred sentence for the offense of Burglary, a felony. The court requested that the Defendant be considered for the Boot Camp Program after serving one year (including credit for time served) and that with the completion of Boot Camp, the remainder of the sentence will be suspended.
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.
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 twenty (20) years in the Montana State Prison, with ten (10) years suspended. This sentence shall run concurrently with Lewis and Clark County Cause Number BDC-2005-303. The Defendant shall be considered for the Boot Camp Program after serving one year (including credit for time served) and that with the completion of Boot Camp, the remainder of the sentence will be suspended. The terms and conditions shall remain as originally imposed.
Hon. Ted L. Mizner, District Court Judge.
|
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Justice Brian Morris
delivered the Opinion of the Court.
¶1 Ramon Kotwicki (Kotwicki) appeals from the sentence imposed by the Eighth Judicial District, Cascade County, following his conviction for five felony counts of criminal possession of dangerous drugs in violation of § 45-9-102, MCA, and four other misdemeanor drug offenses. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 Law enforcement and probation officers performed a probation search of Kotwicki’s house in Great Falls. Kotwicki was not present at the search. Officers seized prescription pills, drugs, paraphernalia, and cash from Kotwicki’s house. Officers arrested Kotwicki the next day pursuant to a warrant for an alleged violation of his probation based on the results of the probation search. Officers found more drugs, paraphernalia, and cash on Kotwicki and in his car at the time of his arrest. Officers seized a total of $5,303.84 from Kotwicki.
¶3 The State charged Kotwicki with five felony counts of criminal possession of dangerous drugs and four misdemeanor drug offenses. The State did not charge Kotwicki, however, with possession of dangerous drugs with intent to distribute. Kotwicki was convicted on all charges following a bench trial. The State asked the court to sentence Kotwicki to prison time and recommended that the court impose a fine of $25,000. Kotwicki objected to the imposition of the $25,000 fine on the grounds that it would unfairly minimize the credit for time he spent in custody before trial. Kotwicki did not object to the fine on the grounds that the District Court failed to inquire whether he had the ability to pay.
¶4 The District Court classified Kotwicki as a persistent felony offender and sentenced him to prison terms for each of the five felony possession counts and jail time for the misdemeanor counts with the sentences to run concurrently. The court further sentenced Kotwicki to pay a fine of $25,000 and applied 391 days of time served toward the fine. The court also applied the $5,303.84 seized from Kotwicki toward his fine, leaving a balance of $1,010.31 for Kotwicki to pay. Kotwicki appeals on grounds that the District Court imposed an illegal sentence.
STANDARD OF REVIEW
¶5 We review a criminal sentence for legality only; that is, whether the sentence falls within the statutory parameters. State v. Borsberry, 2006 MT 126, ¶ 11, 332 Mont. 271, ¶ 11, 136 P.3d 993, ¶ 11.
DISCUSSION
¶6 Whether the District Court imposed an illegal sentence on Kotwicki.
¶7 Kotwicki argues that his sentence is illegal on two grounds. Kotwicki argues first that his sentence is illegal because the District Court failed to inquire and make specific findings as required by § 46-18-231(3), MCA, on Kotwicki’s financial resources before imposing the $25,000 fine. Second, Kotwicki argues that the court’s failure to consider the factors stated in § 46-18-231(3), MCA, renders the court’s application of the seized $5,303.84 toward the $25,000 fine a violation of due process that also results in an illegal sentence. Kotwicki concedes that he did not object on these grounds at sentencing, but maintains that he may raise these issues for the first time on appeal based on our decision in State v. Lenihan, 184 Mont. 338, 602 P.2d 997 (1979).
¶8 We generally refuse to review on appeal an issue to which the party failed to object at the trial court. Lenihan, 184 Mont. at 341, 602 P.2d at 999. Our decision in Lenihan, however, provides an exception to the general rule and allows appellate review of a criminal sentence that is alleged to be illegal or in excess of statutory mandates, even if the defendant raised no objection in the trial court. Lenihan, 184 Mont. at 343, 602 P.2d at 1000.
¶9 Kotwicki argues that our decision in State v. McLeod, 2002 MT 348, 313 Mont. 358, 61 P.3d 126, compels application of the Lenihan rule in this case. We applied the Lenihan rule and reviewed the legality of McLeod’s sentence on appeal, even though McLeod lodged no objection to his sentence before the sentencing court. McLeod, ¶ 16. McLeod challenged the legality of his sentence on appeal on grounds that the sentencing court erroneously relied on misinformation in imposing his sentence. McLeod, ¶ 16. We upheld McLeod’s sentence based on the fact that McLeod’s failure to object to the mistake constituted a waiver. McLeod, ¶ 26.
¶10 We then considered McLeod’s challenge to the legality of the $1,000 fine that the sentencing court imposed, arguing that the court failed to comply with its statutory duty under § 46-18-231, MCA, to consider whether he had the ability to pay such a fine. McLeod, ¶ 28. We reversed the sentencing court’s imposition of the $1,000 fine, because the record failed to demonstrate that the sentencing court considered McLeod’s ability to pay a fine. McLeod, ¶ 35.
¶11 Kotwicki raises the Lenihan rule on identical grounds as those raised in McLeod’s challenge to the $1,000 fine imposed by the sentencing court. Kotwicki contends that the District Court failed to consider his ability to pay a $25,000 fine as required by § 46-18-231(3), MCA, thereby imposing an illegal sentence. Kotwicki contends that because we reviewed McLeod’s claim of an illegal sentence, we also must do so here.
¶12 We note, however, the absence of a Lenihan analysis in the Court’s review of McLeod’s challenge to the $1,000 fine. McLeod, ¶¶ 28-35. A closer look at McLeod reveals that we considered the Lenihan exception only in the context of McLeod’s argument that the sentencing court considered misinformation contained in a presentence report in imposing his allegedly illegal sentence. McLeod, ¶ 16. Without any analysis, we apparently extended the Lenihan rule to McLeod’s challenge to the imposition of the $1,000 fine, presumably because McLeod alleged it to be illegal. McLeod, ¶ 28.
¶13 A defendant generally need only allege that the court imposed an illegal sentence in order to invoke the Lenihan rule. State v. Garrymore, 2006 MT 245, ¶ 14, 334 Mont. 1, ¶ 14, 145 P.3d 946, ¶ 14. We consistentlyhave held that a sentence is not illegal if it falls within statutory parameters. Garrymore, ¶ 9. We also have determined that a sentencing court’s failure to abide by a statutory requirement rises to an objectionable sentence, not necessarily an illegal one that would invoke the Lenihan exception. See State v. Nelson, 274 Mont. 11, 20, 906 P.2d 663, 668 (1995); State v. Swoboda, 276 Mont. 479, 482, 918 P.2d 296, 298 (1996).
¶14 Both Nelson and Swoboda involve situations where the trial court failed to consider sentencing alternatives as required by § 46-18-225, MCA, before imposing a prison sentence upon a nonviolent offender. The defendants in each case failed to object to the court’s error at the sentencing hearing. The court in both instances sentenced the defendants to a term of imprisonment. Nelson, 274 Mont. at 20, 906 P.2d at 668; Swoboda, 276 Mont. at 482, 918 P.2d at 298.
¶15 The defendants in Nelson and Swoboda both attempted to invoke the Lenihan rule on appeal, arguing that the Court should review their sentences, even though they failed to raise an objection in district court. Each defendant argued that the district court imposed an illegal sentence in light of the court’s failure to abide by the statutory requirements. Nelson, 274 Mont. at 20, 906 P.2d at 668; Swoboda, 276 Mont. at 482, 918 P.2d at 298. In each case, we held that the court, after considering the requirements of § 46-18-225, MCA, legally could have sentenced Nelson and Swoboda to prison, thus the sentences failed to meet the illegality requirement for applying the Lenihan rule. Nelson, 274 Mont. at 20, 906 P.2d at 668; Swoboda, 276 Mont. at 482, 918 P.2d at 298.
¶16 We decline to apply the Lenihan rule here based on our reasoning in Nelson and Swoboda. The District Court, had it considered the statutory requirements of § 46-18-231(3), MCA, legally could have imposed a $25,000 fine upon Kotwicki. Section 46-18-231, MCA, authorizes the court to impose a fine not to exceed $50,000 for each felony offense in addition to or in lieu of a term of imprisonment. Kotwicki’s fine of $25,000 falls within the parameters of that statute, and thus Kotwicki’s sentence is not an illegal sentence for the purposes of invoking the Lenihan rule.
¶17 The Dissent suggests that our decision to exclude Kotwicki’s argument from Lenihan review “conflicts with our decision in Garrymore.” See ¶ 24. Our decision to deny Lenihan review of Kotwicki’s claim, however, neither overturns Garrymore, nor contradicts our pronouncement in Garrymore that “it would ultimately undermine the efficacy of the sentencing process to reject appellate review of sentences where the defendant objected in the district court and changed his theory on appeal, yet allow appellate review of sentences where no objection is made, thereby creating an institutional incentive for defendants to remain silent during sentencing.” Garrymore, ¶ 13.
¶18 Conversely, allowing appellate review of objectionable, but otherwise legal sentences that had not been raised in district court also would encourage silence during the sentencing process. Appellate review under the Lenihan exception, therefore, depends only on whether the defendant raises a plausible allegation that his sentence is illegal, not whether such an argument constitutes a change of theory on appeal. Lenihan, in fact, allows review of a change of theory on appeal, regardless of whether the defendant raised the objection at sentencing, as long as such a change of theory alleges that the sentencing court imposed an illegal sentence.
¶19 We employed the Lenihan exception and allowed appellate review in Garrymore because the defendant raised a plausible argument that the district court imposed an illegal sentence that fell outside of the statutory parameters. The State argued against application of the Lenihan exception on the grounds that Garrymore’s sentence fell within statutory parameters. Garrymore, ¶ 15. The State offered no analysis, however, in support of its contention that Garrymore’s sentence fell within the statutory limits. Garrymore, ¶ 15. We decided, therefore, to review Garrymore’s constitutional challenge to his sentence based on his argument that the sentence exceeded statutory bounds. Garrymore, ¶¶ 15-16, 23.
¶20 Garrymore argued that a parole eligibility restriction amounted to an illegal sentencing enhancement because it required a factual determination by a jury, not a sentencing judge. Garrymore, ¶ 16. Garrymore contended that his sentence exceeded statutory parameters authorized by § 45-5-102(2), MCA, and violated his rights under the Sixth and Fourteenth Amendments to the United States Constitution and Article II of the Montana Constitution. Garrymore’s claim of an illegal sentence allowed us to address the merits of his claim that the parole eligibility restrictions imposed by the district court violated the rule set forth in Apprendi v. New Jersey, 530 U.S. 466, 120 S.Ct. 2348 (2000). Garrymore, ¶ 15.
¶21 Kotwicki makes no colorable claim here for an illegal sentence. Kotwicki’s sentence does not fall outside statutory parameters based on our reasoning in Nelson and Swoboda. We recognize that § 46-18-231(3), MCA, requires the District Court to consider Kotwicki’s ability to pay a fine as well as other factors, including the burden imposed by the fine and the nature of the offense. The record indicates that the District Court actually may have considered such factors in imposing the fine against Kotwicki. For example, Parole and Probation Officer James Clancy (Clancy) testified at Kotwicki’s sentencing hearing that Kotwicki maintained employment as a construction worker. Clancy also testified that Kotwicki explained that the cash found in his possession recently had been withdrawn from his personal savings account. The court noted that it was “quite a sum of money,” and that it was “possible” that Kotwicki had earned and saved the cash through his job as a laborer. The court could have considered Kotwicki’s ability to pay through the determination that Kotwicki had maintained employment over the years and had in his possession a large sum of cash. We will never know for sure, however, if the court considered such factors because the court made no specific findings as to Kotwicki’s ability to pay. As a result, we assume that the court failed to consider Kotwicki’s financial condition. We conclude that the court’s failure to consider the factors as stated in § 46-18-231(3), MCA, however, constituted an objectionable sentence, not an illegal sentence. Kotwicki did not object to the court’s sentence on the grounds that it failed to consider his financial position to pay such a fine.
¶22 Kotwicki’s failure to object to the court’s oversight of Kotwicki’s ability to pay the $25,000 fine constituted a waiver that prevents us from reviewing the issue on appeal. A failure to raise an issue before the district court bars the defendant from raising the issue on appeal. Section 46-20-104, MCA. Kotwicki, although alleging an “illegal sentence,” fails to present a colorable claim that his sentence fell outside statutory parameters as to warrant our review under the Lenihan rule. Thus, we decline to consider Kotwicki’s sentence on appeal on both grounds raised.
¶23 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER and RICE concur.
|
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On April 1, 2002, the defendant was sentenced to twenty (20) years in the Montana State Prison for the offense of Aggravated Assault, 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 Randi Hood. 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.
DATED this 19th day of November, 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 December 8, 2005, the defendant was sentenced to twenty (20) years in the Montana State Prison, with fifteen (15) years suspended, for the offense of Sexual Assault, 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 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 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 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 29, 2006, the defendant was sentenced to the following: Charge L Twenty (20) years in the Montana Women’s Prison, with ten (10) years suspended, for the offense of Criminal Distribution of Dangerous Drugs (1 count), a Felony. The Defendant shall be required to serve at least five (5) years of this sentence without possibility of parole and will not be eligible for parole thereafter until the Defendant has completed all available chemical dependency treatment while in State custody and any other programs recommended by the initial classification procedures of the Department of Corrections; and Charge II: Five (5) years in the Montana Women’s Prison, to run concurrently to the sentence in Charge I, for the offense of Criminal Possession of Dangerous Drugs (Methamphetamine), a Felony.
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 represented by William Fullbright who appeared by videoconference.
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).
DATED this 25th day of October, 2006.
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 6th day of October, 2006.
Chairperson, Hon. John Whelan, Member, Hon. Randal I. Spaulding and Member, Hon. Katherine Irigoin.
|
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On October 27, 2005, the defendant was sentenced to ten (10) years in the Montana State Prison, with two (2) years suspended, for the offense of Assault on a Peace Officer, a felony, and 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 Kenneth Olson. 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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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 On June 23,2003, Appellees Corey Jay Wamsley and Jeffrey Alan Wamsley, in their capacities as co-Personal Representatives of the Estate of Alan and Sharon Wamsley (Estate), filed suit against Appellant Nodak Mutual Insurance Company (Nodak) in the Eighteenth Judicial District. The Estate sought compensation for damages from an August 2002 automobile accident near Bozeman, Montana, in which their parents, Alan and Sharon Wamsley (Wamsleys), were killed. In its suit, the Estate sought to “stack,” or combine the coverage of, three underinsured motorist (UIM) policies issued to the Wamsleys by Nodak. Nodak disputed its obligation to stack these three policies.
¶2 After lengthy legal proceedings, on November 9,2005, the District Court rendered a stipulated judgment against Nodak pursuant to M. R. Civ. P. 54. In its order, the District Court held the Estate could stack all three UIM policies, and rendered final judgment against Nodak in the amount of $400,000.00. On appeal, Nodak challenges this order as well as the District Court’s denials of its motion to stay, its motions for summary judgment, its motion to reconsider, and a grant of summary judgment to the Estate on the issue of stacking. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶3 Although complicated, the facts and chronology in this case are not in dispute. On August 8, 2002, the Wamsleys were traveling eastbound in a Chrysler Voyager minivan on Interstate 90 near Bozeman, Montana. Lester Stanton, a Montana resident, was traveling westbound on the opposite side of Interstate 90 at the same time. Stanton was highly intoxicated and passed out while driving. As a result, he crossed the highway meridian and collided with the Wamsleys’ minivan. The impact from the crash spun the Wamsleys’ vehicle into a motor home which was traveling behind it on Interstate 90. The Wamsleys and Stanton were all killed. The Wamsleys had been residents of North Dakota and insured with Nodak, a North Dakota-based insurance carrier. Stanton was insured by an Idaho-based insurance carrier, Progressive Specialty Insurance. After their death, two of the Wamsleys’ six children, Corey and Jeffrey Wamsley, were appointed co-Personal Representatives of the Wamsleys’ Estate.
¶4 After the accident, the Estate obtained Montana counsel. The Estate received $50,000.00 from Progressive, representing the coverage limits of Stanton’s policy. Because the damages from the accident exceeded this amount, the Estate sought additional payment from Nodak under three UIM policies held by the Wamsleys prior to their death. The policies provided UIM coverage in the amount of $100,000.00 per insured, for each vehicle covered. The Wamsleys owned a total of three vehicles covered under these terms, one of which was the Chrysler Voyager minivan which the Wamsleys were driving on August 8, 2002. The other two vehicles were garaged in North Dakota at the time of the accident. If allowed, the stacking of these policies would permit the Estate to seek a total of $600,000.00 in UIM claims.
¶5 In December 2002 the Estate’s counsel notified Nodak of its intent to stack all three UIM policies. At the time of this demand, we were considering, but had not yet decided, Hardy v. Progressive Specialty Ins. Co., 2003 MT 85, 315 Mont. 107, 67 P.3d 892. At issue in Hardy was the constitutionality of § 33-23-203, MCA, a statute passed by the Montana Legislature which prohibited the stacking of UIM policies. The Estate’s Montana counsel notified Nodak of this pending litigation and stated her belief that we would likely find the statute unconstitutional and allow the stacking of UIM claims. As a settlement proposal, the Estate offered to accept $400,000.00 from Nodak in exchange for dropping its UIM claims for the full amount of $600,000.00.
¶6 On April 7, 2003, Nodak paid the Estate $200,000.00 for UIM coverage on the Chrysler minivan involved in the accident. However, Nodak continued to dispute its obligation to stack the two remaining UIM policies. On April 18, 2003, we decided Hardy, overturning § 33-23-203, MCA, and holding that stacking of UIM policies was allowed in Montana as a matter of public policy. Hardy, ¶¶ 38,45. Immediately after Hardy issued, the Estate restated its demand that Nodak provide payment under the remaining two UIM policies, an amount totaling $400,000.00. The Estate set a response deadline of April 28,2004, after which it stated it would file suit against Nodak. Counsel for Nodak requested more time to study the matter, which the Estate graciously granted. On May 20, 2003, Nodak informed the Estate it was still investigating its demand, and requested further time to complete its investigation.
¶7 In truth, Nodak was preparing to seek a declaratory judgment in North Dakota on the Estate’s UIM claims. On June 4, 2003, Nodak initiated an action in District Court in Kidder County, North Dakota. Nodak sought a declaration that the Wamsleys’ UIM policies could not be stacked under North Dakota law. The Wamsleys’ surviving children were named as defendants. A “courtesy” notice of this lawsuit was received by the Estate’s counsel on June 6, 2003.
¶8 Meanwhile, litigation on this matter was also underway in the Eighteenth Judicial District Court in Gallatin County, Montana. On June 23,2003, the Estate filed suit against Nodak and sought to stack the UIM policies, seeking recovery of $400,000.00 in compensatory damages. The Estate also sought punitive damages for violations of the Montana Unfair Trade Practices Act, §§ 33-18-101 through 1006, MCA. On July 23, 2003, Nodak responded in the Montana action by filing a “Limited Appearance to Contest Personal Jurisdiction” pursuant to M. R. Civ. P. 12. On August 13, 2003, the Estate moved for partial summary judgment on its stacking claims. On August 14,2003, Nodak filed a motion to stay the Estate’s motion pending the outcome of its declaratory judgment action in North Dakota.
¶9 On October 7, 2003, while Nodak’s motion to stay was under consideration, the North Dakota District Court ruled that North Dakota law would be applied in Nodak’s declaratory judgment action. Nodak brought this ruling to the District Court’s attention in the Montana action. On November 5, the District Court in Montana held oral argument on Nodak’s motion to stay and subsequently denied it.
¶10 Notably, on November 11, Nodak moved for partial summary judgment in the Montana District Court, arguing for the first time the District Court lacked personal jurisdiction over it and that North Dakota law should apply to the Estate’s claims. Nodak also argued the District Court in Montana was required to grant the North Dakota ruling full faith and credit, and that collateral estoppel barred the Estate from litigating its UIM claims in Montana. On November 14, the District Court held oral argument on the Estate’s previous summary judgment motion on the issue of stacking. That same day the District Court ruled it had in personam jurisdiction over Nodak and that the Estate was allowed to stack the UIM policies as a matter of law, in effect refusing to accredit the North Dakota rulings on choice of law.
¶11 Five days later, on November 19,2003, after the Montana District Court had already ruled on the Estate’s stacking claims, the North Dakota District Court granted summary judgment to Nodak holding it was not obligated to stack the UIM policies. The next day, the District Court in Montana denied Nodak’s motion for partial summary judgment, ruling that North Dakota law did not apply to the Estate’s stacking claims in Montana and that the claims were not barred by collateral estoppel. Subsequently, Nodak moved the court to reconsider its denial of Nodak’s motions to stay and partial summary judgment. On January 27, 2004, the District Court denied Nodak’s motion to reconsider.
¶12 On September 13, 2004, the North Dakota Supreme Court, over one dissenting Justice, upheld the North Dakota District Court’s declaratory judgment, finding that North Dakota law applied to the UIM claims and did not allow stacking. Nodak Mut. Ins. Co. v. Wamsley, 687 N.W.2d 226 (N.D. 2004). On September 30, 2004, the District Court in Montana entered an order rendering judgment against the Estate of Lester Stanton in the amount of $700,000.00. On December 2,2004, after obtaining this judgment and serving notice on all parties, the Estate moved for partial summary judgment in the amount of $400,000.00 for its UIM claims and sought an entry of final judgment pursuant to M. R. Civ. P. 54(b). In response, Nodak opposed the Estate’s motion and filed another cross-motion for summary judgment, again arguing that the North Dakota Supreme Court’s decision in Nodak should be given full faith and credit. Nodak’s motions were again denied.
¶13 Other issues not relevant to the current appeal continued to be raised and argued before the District Court. On September 2, 2005, both parties entered into mediation in this matter and subsequently entered into a Stipulation Regarding Final Judgment. Pursuant thereto, on November 9, 2005, the District Court entered final judgment against Nodak in the sum of $400,000.00, and certified the judgment as final pursuant to M. R. Civ. P. 54(b). Nodak timely appealed.
ISSUES
¶14 We restate the issues on appeal as follows:
¶15 Issue One: Did the District Court err by concluding it had personal jurisdiction over Nodak in Montana?
¶16 Issue Two: Did the District Court abuse its discretion when it denied Nodak’s motion to stay legal proceedings in Montana pending the outcome of Nodak’s declaratory judgment action in North Dakota?
¶17 Issue Three: Did the District Court err in holding that Montana law applied to the Estate’s stacking claims?
¶18 Issue Four: Did the District Court err in concluding the Estate could stack the UIM policies when the Estate presented no evidence of a reasonable expectation that the policies could be stacked?
¶19 Issue Five: Did the District Court err by refusing to accord preclusive effect to the rulings from the North Dakota courts under the Full Faith and Credit clause to the United States Constitution?
¶20 Issue Six: Does the doctrine of collateral estoppel preclude the Estate from litigating its UIM claims in Montana?
¶21 Issue Seven: Do principles of comity require the Montana courts to defer to the rulings from the North Dakota Supreme Court in this case?
STANDARD OF REVIEW
¶22 “We review a district court’s grant of summary judgment de novo, 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.” Russell v. Masonic Home of Mont. Inc., 2006 MT 286, ¶ 9, 334 Mont. 351, ¶ 9, 147 P.3d 216, ¶ 9. Once this burden has been satisfied, the non-moving party may raise a genuine issue of material fact by presenting substantial evidence essential to one or more elements in the case. Russell, ¶ 9. We review a district court’s conclusions of law to determine whether or not they are correct. Russell, ¶ 9.
¶23 We review district court orders related to trial administration matters, such as a motion to stay, under the abuse of discretion standard. Eatinger v. Johnson, 269 Mont. 99, 105-06, 887 P.2d 231, 235 (1994). “The test for abuse of discretion is 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 (quotation omitted).
DISCUSSION
¶24 Issue One: Did the District Court err by concluding it had personal jurisdiction over Nodak in Montana?
¶25 The District Court concluded Nodak waived the defense of lack of personal jurisdiction, and submitted to the jurisdiction of the District Court, by its voluntary appearance at the hearing on November 5, 2003, and by failing to properly argue the merits of this defense as required by M. R. Civ. P. 12 and M. Unif. Dist. Ct. R. 2(a). Nodak maintains this was error. First, Nodak argues it is not “found” in Montana pursuant to M. R. Civ. P 4B(1), Montana’s “long arm” jurisdiction statute, and that subjecting it to personal jurisdiction in Montana offends due process. Second, Nodak asserts its “limited appearance” on July 23,2003, preserved the defense of lack of personal jurisdiction, permitting Nodak to argue it at a later unspecified date. Thus, its participation in the November 5 hearing did not waive the defense. The Estate counters that the “limited appearance” is no longer available in Montana, and that such an appearance is simply treated as a motion to dismiss under M. R. Civ. P. 12. Accordingly, the District Court was correct to deem the motion to be without merit since Nodak failed to argue or brief it within five days pursuant to M. Unif. Dist. Ct. R. 2(a).
¶26 We agree with the Estate that Nodak waived its right to argue the defense of lack of personal jurisdiction. The District Court correctly noted that M. R. Civ. P. 12 has effectively abolished the distinction between “general” and “special” appearances. Semenza v. Kniss, 2005 MT 268, ¶ 17, 329 Mont. 115, ¶ 17, 122 P.3d 1203, ¶ 17 (quoting Knoepke v. S.W. Ry. Co., 190 Mont. 238, 243, 620 P.2d 1185, 1187 (1980)). A “limited appearance” in Montana is effectively treated as a Rule 12 motion to dismiss for lack of personal jurisdiction. See Foster Apiaries, Inc. v. Hubbard Apiaries, Inc., 193 Mont. 156, 160, 630 P.2d 1213, 1215 (1981). Under M. Unif. Dist. Ct. R. 2(a), a party raising this defense has five days to file a supporting brief or argue its motion. Failure to do so subjects that party to the risk its motion will be deemed without merit. M. Unif. Dist. Ct. R. 2(b). That is precisely what happened here. Nodak’s “limited appearance” was in effect a Rule 12 motion. Nodak did not argue the merits of lack of personal jurisdiction, or even raise the specific issue, until roughly three and a half months after it filed its initial appearance, and in the interim presented other arguments to the District Court. Under these circumstances, the District Court did not err in finding the Rule 12 motion without merit.
¶27 The District Court also correctly determined Nodak’s participation in the court proceedings constituted a voluntary appearance under M. R. Civ. P. 4B(2), thus waiving the defense of lack of personal jurisdiction and admitting the jurisdiction of the District Court. M. R. Civ. P. 4B(2) provides that “[¡jurisdiction may be acquired by our courts over any person ... by the voluntary appearance in an action by any person either personally, or through an attorney, or through any other authorized officer, agent or employee.” As we stated in Spencer v. Ukra, 246 Mont. 430, 804 P.2d 380 (1991), “any act which recognizes the case as in court constitutes a general appearance, and even in the face of a declared contrary intention, a general appearance may arise by implication from the defendant seeking, taking, or agreeing to some step or proceeding in the cause beneficial to himself and detrimental to the plaintiff, other than one contesting only the jurisdiction of the court.” Spencer, 246 Mont. at 433, 804 P.2d at 382 (quotation omitted, emphasis added). Nodak could have argued personal jurisdiction without subjecting itself to the power of the District Court, but chose not to. Semenza, ¶ 17 (quotation omitted) (stating that a party may argue lack of personal jurisdiction without concern that such argument will “subject [it] to the general power of the court solely because of the response.”). Instead Nodak sought affirmative relief from the District Court in its motion to stay on the basis of principles of comity. By filing motions seeking relief from the District Court “on other, non-jurisdictional grounds ... [Nodak] admitted the authority and jurisdiction of the court over the company and the case.” Foster Apiaries, 630 P.2d at 1215, 193 Mont. at 160.
¶28 Because we find the District Court did not err in concluding it had personal jurisdiction over Nodak under the foregoing rationales, we do not reach the other challenges Nodak raises to the District Court’s rulings on this issue.
¶29 Issue Two: Did the District Court abuse its discretion when it denied Nodak’s motion to stay legal proceedings in Montana pending the outcome of Nodak’s declaratory judgment action in North Dakota?
¶30 Nodak argues the District Court’s denial of its motion to stay constituted an abuse of discretion. Nodak asserts the District Court should have stayed the proceedings in Montana until the North Dakota declaratory judgment was decided. Nodak maintains that notions of comity required this result because the litigation was “first-filed” in North Dakota. We disagree.
¶31 In Simmons v. State, 206 Mont. 264, 670 P.2d 1372 (1983), we defined “comity’ as
not a rule of law, but one of practice, convenience, and expediency. It does not of its own force compel a particular course of action. Rather, it is an expression of one state’s entirely voluntary decision to defer to the policy of another. Such a decision may be perceived as promoting uniformity of decision, as encouraging harmony among participants in a system of co-operative federalism, or as merely an expression of hope for reciprocal advantages in some future case in which the interests of the forum are more critical.
Simmons, 206 Mont. at 289, 670 P.2d at 1385 (citations and quotations omitted).
¶32 The Ninth Circuit has described the “first to file” rule on which Nodak relies as
a generally recognized doctrine of ... comity which permits a district court to decline jurisdiction over an action when a complaint involving the same parties and issues has already been filed in another district.... [T]his “first to file” rule is not a rigid or inflexible rule to be mechanically applied, but rather is to be applied with a view to the dictates of sound judicial administration.
Pacesetter Systems, Inc. v. Medtronic, Inc., 678 F.2d 93, 94-95 (9th Cir. 1982) (citations omitted).
When reviewing a decision involving the “first to file” rule on appeal “an ample degree of discretion, appropriate for disciplined and experienced judges, must be left to the lower courts.” Pacesetter Systems, Inc., 678 F.2d at 95 (quotation omitted).
¶33 Here, the District Court adhered to the dictates of sound judicial administration and did not abuse its discretion when it denied Nodak’s motion to stay. Clearly, Montana and North Dakota both have interests in resolving the UIM stacking claims at issue. The North Dakota Supreme Court has stated North Dakota’s interest in governing the relationship between a North Dakota insured and North Dakota insurer. Nodak, 687 N.W.2d at 234. Montana has a number of important interests as well. First, Montana has a well-established practice of applying Montana law to automobile accidents occurring within its borders. E.g., Kemp v. Allstate Ins. Co., 183 Mont. 526, 533, 601 P.2d 20, 24 (1979); Mitchell v. State Farm Ins. Co., 2003 MT 102, ¶¶ 20-21, 315 Mont. 281, ¶¶ 20-21, 68 P.3d 703, ¶¶ 20-21. Also, in Montana an injured party may bring a suit against the tortfeasor and the insurance company in one action when UIM coverages are sought. See e.g., State of Mont. ex. rel. Gadbaw v. Mont. Eighth Jud. Dist. Ct., 2003 MT 127, ¶¶19-25, 316 Mont. 25, ¶¶ 19-25, 75 P.3d 1238, ¶¶ 19-25. Because the accident occurred in Montana and the tortfeasor was a Montana resident, the claim arose here and Montana is the proper forum within which to “settle the rights, status, and other legal relations in that underlying action.” Nodak, 687 N.W.2d at 235 (Maring, J., dissenting). Choice of law and the issue of stacking are critical in making these final determinations and are well within the judicial competency of the District Court in Gallatin County. By denying Nodak’s motion to stay, the District Court was simply trying to prevent needless “piecemeal litigation” with respect to these claims. Nodak, 687 N.W.2d at 235 (Maring, J., dissenting) (stating that “by deciding the declaratory judgment action [in North Dakota], we encourage piecemeal litigation.”). Additionally, Nodak fails to provide any evidence that substantial injustice resulted from the District Court’s denial of the motion. Instead, the District Court’s decisions were an example of sound judicial administration. Its actions were not arbitrary and did not “exceed[] the bounds of reason resulting in substantial injustice.” English, ¶ 50.
¶34 Moreover, as the Estate points out, there is an exception to the “first to file” rule where a party’s “first filing” is simply an act of forum-shopping. Alltrade, Inc. v. Uniweld Prod. Inc., 946 F.2d 622, 628 (9th Cir. 1991). Nodak’s rush to the North Dakota courts in this case is a paradigmatic example of such conduct. Nodak apparently believed it would get a more favorable result in the North Dakota courts on the UIM stacking issue, and therefore sought to lull a delay in the commencement of the Montana case in order to secure an advantage there. See ¶¶ 6-7. Under such circumstances, Nodak’s invocation of “comity” rings hollow. Accordingly, we conclude the District Court did not abuse its discretion by denying Nodak’s motion to stay the Montana proceedings.
¶35 Issue Three: Did the District Court err in holding that Montana law applied to the Estate’s stacking claims?
¶36 Nodak maintains the District Court erred when it concluded Montana law applied to the Estate’s UIM stacking claims. Nodak asserts that an application of the choice of law analysis from the Restatement (Second) of Conflict of Laws §§ 188, 193 (1971) leads to the conclusion that North Dakota law should apply to the Estate’s stacking claims. In essence, Nodak argues the UIM claims concern a North Dakota insurance transaction to which only North Dakota law should apply and that Montana’s relationship is limited solely to the fact that the accident occurred here. The relevant sections of the Restatement provide as follows:
§ 188. Law Governing in Absence of Effective Choice of Law by the Parties
(1) The rights and the duties of the parties with respect to an issue in contract are determined by the local law of the state which, with respect to that issue, has the most significant relationship to the transaction and the parties under the principles stated in § 6.
(2) In the absence of an effective choice of law by the parties (see § 187), the contacts to be taken into account in applying the principles of § 6 to determine the law applicable to an issue include:
(a) the place of contracting,
(b) the place of negotiation of the contract,
(c) the place of performance,
(d) the location of the subject matter of the contract, and
(e) the domicil, residence, nationality, place of incorporation and place of business of the parties.
These contacts are to be evaluated according to their relative importance with respect to the particular issue.
§ 193. Contracts of Fire, Surety or Casualty Insurance The validity of a contract of fire, surety or casualty insurance and the rights created thereby are determined by the local law of the state which the parties understood was to be the principal location of the insured risk during the term of the policy, unless with respect to the particular issue, some other state has a more significant relationship under the principles stated in § 6 to the transaction and the parties, in which event the local law of the other state will be applied.
§ 6. Choice-of-Law Principles
(1) A court, subject to constitutional restrictions, will follow a statutory directive of its own state on choice of law.
(2) Where there is no such directive, the factors relevant to the choice of law include .... [Not applicable.]
¶37 The Estate contends the District Court was correct to apply Montana law to the Estate’s claims. Particularly, the Estate points to Youngblood v. Am. States Ins. Co., 262 Mont. 391, 866 P.2d 203 (1993) and Kemp for the proposition that Montana has long applied Montana law to automobile accidents occurring within its borders. The Estate also claims the conflicts analysis we applied under the Restatement in Mitchell points to the conclusion that Montana law controls. Nodak argues Mitchell is distinguishable on its facts and does not apply to the instant case.
¶38 In Mitchell, we analyzed a claim similar to the one before us now. In that case, Plaintiff Mitchell was injured in an automobile accident in Montana. At the time he was living and working in Montana, but was insured under his parents’ policies issued in California. To cover damages from the accident, Mitchell tried to stack his parents’ UIM policies, although they covered vehicles garaged in California at the time of the accident. Mitchell sought to apply Montana law to his stacking claims. The District Court ruled against him, holding that California law applied. At issue on appeal before this Court was whether California or Montana law would govern the determination of Mitchell’s stacking claims.
¶39 In Mitchell we outlined the analysis to be applied when resolving conflicts of laws questions under the Restatement. We began by noting that under our prior decisions in Phillips v. Gen. Motors Corp., 2000 MT 55, 298 Mont. 438, 995 P.2d 1002, and Casarotto v. Lombardi, 268 Mont. 369, 886 P.2d 931 (1994), we would apply the Restatement (Second) Conflict of Laws to Mitchell’s claims. Mitchell, ¶ 16. We stated that we would approach the Restatement “criteria in a careful, step-by-step fashion, to avoid misapplication of the law.” Mitchell, ¶ 17.
¶40 Accordingly, before conducting an analysis under §§ 188(2) and 193, our first task was to determine “whether Montana law addressed the choice of law concerning Mitchell’s ... policy pursuant to § 6(1).” Mitchell, ¶ 18. We noted that § 6(1) of the Restatement “requires a court to first look to relevant state law when determining applicable law.” Mitchell, ¶ 21. We also noted § 28-3-102, MCA, provides that “ ‘[a] contract is to be interpreted according to the law in [sic] usage where it is to be performed or, if it does not indicate a place of performance, according to the law and usage of the place where it is made.’ ” Mitchell, ¶ 19 (quoting § 28-3-102, MCA). From this we concluded that “unless the terms of the insurance contract provide otherwise... where an insurance contract designates the place of performance to be any state where a claim arises, performance occurs where the insured obtains judgment.” Mitchell, ¶ 20 (citation omitted). Linking these analyses together we held “[i]t logically follows, that the place of performance is also the place where an insured is entitled to receive benefits, has incurred accident related expenses, or is entitled to judgment.” Mitchell, ¶ 20. On this premise we concluded Montana was the place of performance of the contract because
Mitchell was working and living in Montana at the time of the accident; the underinsured tortfeasor’s vehicle was insured in Montana; Mitchell’s medical expenses were incurred in Montana; Mitchell settled with the [tortfeasors’] insurers for the policy limit giving rise to the underinsured motorist claim in Montana; and judgment concerning the accident will be rendered and paid in Montana.
Mitchell, ¶ 22.
¶41 While the facts in this case differ slightly from those in Mitchell, the choice of laws analysis is comparable. As Nodak notes, the Wamsleys were residents of North Dakota and had none of the Montana contacts that the Plaintiff had in Mitchell. Nodak also provides a thorough factor-based analysis under § 188(2) and § 193 of the Restatement, and shows why that analysis favors the application of North Dakota law. Yet Nodak fails to apply the careful “step-by-step” approach we applied in Mitchell and skips over the analysis under § 6(1) of the Restatement which is required before proceeding to the general factor-based analysis in § 188(2). As a result, Nodak overlooks the operation of § 28-3-102, MCA, and our holding in Mitchell to the effect that one must first determine the place of performance of the insurance contract.
¶42 Absent language to the contrary, the place of performance of an insurance contract is “where an insured is entitled to receive benefits, has incurred accident related expenses, or is entitled to judgment.” Mitchell, ¶ 20. The factor-based analysis described in the Restatement comes into play only after it has been determined that the contract does not designate a place of performance. If Montana is determined to be the place of performance, then no further analysis under the Restatement factors is required.
¶43 Here, Montana is the place of performance of Nodak’s insurance contracts. The UIM policies in this case contain nearly identical boilerplate language to the policies at issue in Mitchell. Both policies specify the area of coverage to include “the United States of America, its territories and possessions; Puerto Rico; or Canada.” Nodak’s attempt to distinguish the policies here from those in Mitchell is unavailing. Nodak correctly points out that the endorsement section of the policies entitled “Underinsured Motorist Coverage-North Dakota” does not specify a territory of coverage for UIM claims. But neither does it state a limitation of such coverage. Further, the provision of the policy itself entitled “Part C-Underinsured Motorist Coverage” clearly adopts as its territory of coverage the area specified in “Part F-General Provisions.” This latter provision specifies a territory of coverage for the entire policy, including the UIM provisions, and does not indicate a more limited territory of coverage for UIM claims. Absent any limitations of coverage in the endorsement to the UIM policy, nothing in the policies indicates the UIM territory of coverage to be other than “the United States of America, its territories and possessions; Puerto Rico; or Canada.”
¶44 Montana is where the accident occurred and the damages arose. It is the site of the personal injury action filed by the Estate, and the forum in which an order of judgment against Stanton, the Montana tortfeasor, has been rendered. See ¶ 12. Moreover, Nodak has already paid the Estate $200,000.00 in UIM claims submitted by the Estate’s counsel in Montana. Therefore, we conclude the District Court did not err in holding that Montana law should apply to the stacking and coverage issues before us.
¶45 Issue Four: Did the District Court err in concluding the Estate could stack the UIM policies when the Estate presented no evidence of a reasonable expectation that the policies could be stacked?
¶46 Nodak argues our decision in Hardy does not apply to the UIM claims here because under Hardy the Estate is required, but failed to, prove the Wamsleys had a reasonable expectation they would be able to seek UIM coverage under all three policies although they paid a separate premium for each. Nodak further maintains that for Hardy to apply the Estate must show the Wamsleys were charged premiums for stacked UIM coverages, and that they paid a premium for coverage they did not receive.
¶47 The Estate argues that Nodak raises this issue for the first time. We agree. A review of the record shows Nodak had ample opportunity to present this theory to the District Court but failed to do so. Thus, out of fairness to the District Court we will not consider it on appeal for the first time. Timis v. Young, 2001 MT 63, ¶ 8, 305 Mont. 18, ¶ 8, 22 P.3d 1122, ¶ 8.
¶48 Issue Five: Did the District Court err by refusing to accord preclusive effect to the rulings from the North Dakota courts under the Full Faith and Credit clause to the United States Constitution?
¶49 Nodak argues the Full Faith and Credit Clause, U.S. Const, art. IV, § 1, required the District Court to grant preclusive effect to the North Dakota rulings on choice of law and stacking. Nodak asserts those rulings were res judicata to issues raised by the Estate in Montana, and that the District Court erred in not granting them full faith and credit. Nodak points out that the North Dakota District Court ruled on choice of law on October 7,2003, several weeks prior to the Montana District Court’s ruling applying Montana law to the Estate’s stacking claims. In response, the Estate maintains the District Court did not err because the required elements of res judicata are not satisfied. In particular, the Estate argues that the Wamsleys’ children, who appeared in the North Dakota action, were not in privity with the Estate. The Estate also argues full faith and credit is not required in this case because recognition of the North Dakota rulings would impermissibly interfere with the litigation in Montana and Montana’s important interests in this matter.
¶50 The Full Faith and Credit clause, U.S Const, art. IV, § 1, states that “Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State.” Pursuant to this clause, the first Congress enacted 28 U.S.C. § 1738, which specifies that properly authenticated judicial proceedings are to be given national effect. The United States Supreme Court has explained the “animating purpose” of this clause “was to alter the status of the several states as independent foreign sovereignties, each free to ignore obligations created under the laws or by the judicial proceedings of the others, and to make them integral parts of a single nation throughout which a remedy upon a just obligation might be demanded as of right, irrespective of the state of its origin.” Baker by Thomas v. General Motors Corp., 522 U.S. 222, 232, 118 S. Ct. 657, 663 (1998) (quotation omitted). Accordingly, “[a] final judgment in one State, if rendered by a court with adjudicatory authority over the subject matter and persons governed by the judgment, qualifies for recognition throughout the land.” Baker, 522 U.S. at 233, 118 S. Ct. at 663-64.
¶51 We have recognized that “the full faith and credit obligation owed to final judgments is exacting. A final judgment rendered by a state court is entitled to full faith and credit in the courts of its sister states.” Carr v. Bett, 1998 MT 266, ¶ 39, 291 Mont. 326, ¶ 39, 970 P.2d 1017, ¶ 39. In practical terms, 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)). Moreover, there is no public policy exception for the full faith and credit due judgments from another jurisdiction. Carr, ¶ 45. Full faith and credit may demand “submission ... even to hostile policies reflected in the judgment of another State, because [of] the practical operation of the federal system ....” Baker, 522 U.S. at 233, 118 S. Ct. at 664 (quotation omitted). Thus in Carr we held that Montana was required to grant full faith and credit to a Wyoming judgment “even assuming the law underlying the judgment contravenes the public policy of Montana.” Carr, ¶ 45; See also E.g. Finstuen v. Crutcher, 496 F.3d 1139 (10th Cir. 2007) (holding that full faith and credit requires Oklahoma to recognize an adoption by a same sex couple already formalized in another state even though Oklahoma statute specifically prohibits such adoptions on public policy grounds).
¶52 The first step in this analysis is to determine whether the judgment in the North Dakota District Court is res judicata to the action in the Montana, where full faith and credit is sought. To satisfy the res judicata criteria in Montana, the following elements must be satisfied: “(1) the parties or their privies must be the same; (2) the subject matter of the action must be the same; (3) the issues must be the same, and must relate to the same subject-matter; and (4) the capacities of the persons must be the same in reference to the subject-matter and to the issues between them.” Lane v. Mont. Fourth Jud. Dist. Ct., 2003 MT 130, ¶ 23, 316 Mont. 55, ¶ 23, 68 P.3d 819, ¶ 23 (quotation omitted). The Estate contends element number one, identity of the parties or their privies, is not satisfied in this case.
¶53 As we have previously stated “the concept of a ‘privy1 in the context of a judgment applies to one whose interest has been legally represented at trial. We have similarly defined privies as those who are so connected in estate or in blood or in law as to be identified with the same interest and, consequently, affected with each other by litigation.” Holtman v. 4-G’s Plumbing & Heating, Inc., 264 Mont. 432, 437, 872 P.2d 318, 321 (1994). Here, the record shows that the Wamsleys’ children and the Estate are in privity because their legal interests in this matter are the same and were represented similarly in both forums. In North Dakota, the Wamlseys’ children argued against applying North Dakota law to their UIM claims, and the same position was taken by the Estate in Montana. The Wamsleys’ children and the Estate had the same interest in advancing those arguments because of the potential benefit to both the Estate and the children if they were allowed to stack UIM claims. The fact that a conflict of interest might develop later between the children and the Estate is not significant here because, in either event, more money would be available to either the Estate or the Wamsleys’ surviving children if the UIM claims could be stacked. Additionally, we note that the same attorney appeared in North Dakota and Montana, arguing the same basic position in both forums. For these reasons, we agree with Nodak that the privity requirement of res judicata is satisfied.
¶54 Accordingly, we agree with Nodak that the basic elements of res judicata seem to be satisfied by the North Dakota rulings. If full faith and credit were to be accorded the North Dakota rulings, then theoretically after October 7, 2003, the District Court in Montana would be compelled to apply North Dakota law to the Estate’s stacking claims. However, the unquestioning application of full faith and credit in this case is problematic.
¶55 The Estate advances two other arguments against granting full faith and credit in this case which deserve careful consideration. First, the Estate argues the North Dakota rulings should not be granted full faith and credit because they greatly offend the public policy in Montana in favor of stacking. However, this is not an appropriate basis upon which to refuse full faith and credit because, as a general rule, a judgment must be afforded full faith and credit regardless of how greatly it offends the public policy of Montana. Carr, ¶ 45. However, the Estate advances a second argument against granting full faith and credit which we do find compelling.
¶56 The Estate argues the North Dakota rulings are not due full faith and credit because they impermissibly interfere with the Montana litigation. In this connection, it bears repeating that these two cases proceeded simultaneously in two state courts, with competing rulings being sought and obtained within weeks, and sometimes days, of each another. Unlike the classic situation involving the entry of judgment by one court prior to the commencement of the ensuing case in another, we are faced here with an anomalous state of affairs; indeed, Nodak has cited no precedent addressing how and even whether full faith and credit is due under such circumstances. It is against this backdrop that we analyze whether the District Court erred in declining to accord the North Dakota rulings full faith and credit.
¶57 Full faith and credit due to the judgment from a sister state is not automatic. The Full Faith and Credit clause “is not an inexorable and unqualified command. It leaves some scope for state control within its borders of affairs which are peculiarly its own ... [and] there are limits to the extent to which the laws and policy of one state may be subordinated to those of another.” Pink v. A.A.A. Hwy. Exp., 314 U.S. 201, 210, 62 S. Ct. 241, 246 (1941); Magnolia Petroleum Co. v. Hunt, 320 U.S. 430, 438, 64 S. Ct. 208, 213, (1943), overruled on other grounds by Thomas v. Wash. Gas Light Co., 448 U.S. 261, 100 S. Ct. 2647 (1980), (“we assume ... that the command of the Constitution and the statute is not all-embracing, and that there may be exceptional cases in which the judgment of one state may not override the laws and policy of another....”). Thus, the United States Supreme Court has held that “[t]he Full Faith and Credit Clause does not compel £a state to substitute the statutes of other states for its own statutes dealing with a subject matter concerning which it is competent to legislate.’ ” Baker, 522 U.S. at 232, 118 S. Ct. at 663 (quoting Pacific Employers Ins. Co. v. Indust. Accident Commn., 306 U.S. 493, 501, 59 S. Ct. 629, 632 (1939)). Similarly, the Supreme Court has denied the enforcement of anti-suit injunctions which purport to control a court’s actions in another state. “Orders commanding action or inaction have been denied enforcement in a sister State when they purported to accomplish an official act within the exclusive province of that other State or interfered with litigation over which the ordering State had no authority.”Baker, 522 U.S. at 235, 118 S. Ct. at 665 (emphasis added). This view is echoed in the Restatement (Second) of Conflicts of Laws § 103 cited by the Estate.
A judgment rendered in one State of the United States need not be recognized or enforced in a sister State if such recognition or enforcement is not required by the national policy of full faith and credit because it would involve an improper interference with important interests of the sister State.
¶58 As the comment to the Restatement indicates, the exception represented in this rule is “rare” and its precise parameters, as defined by the United States Supreme Court, remain “uncertain.” Restatement (Second) of Conflict of Laws § 103 cmt. a. However, there are cases where “the national policy of full faith and credit giv[es] way to the important interests of the sister state.” Reading & Bates Const. Co. v. Baker Energy Resources Corp., 976 S.W.2d 702, 714 (Tex. App. 1998). Thus in Reading the Texas Court of Appeals refused to grant full faith and credit to a Canadian judgment subsequently recognized under Louisiana law, without first deciding for itself if it was compelled to enforce the Canadian judgment under Texas law. Reading, 976 S.W.2d at 714-15. The Texas Court of Appeals acknowledged its duty to generally recognize valid Louisiana judgments under full faith and credit, but rejected the notion that it was automatically compelled to give a Canadian judgment full faith and credit in Texas simply because it was first recognized in Louisiana. Reading, 976 S.W.2d at 715. The Texas court noted its legitimate interests in evaluating a foreign judgment before enforcement in Texas, and rejected the attempt to enforce the Canadian judgment “through the back door” via Louisiana law. Reading, 976 S.W.2d at 715.
¶59 Here, the North Dakota declaratory judgment action was begun in an attempt to apply North Dakota law “through the back door” in Montana, and avoid a potentially adverse result here. As noted above, Nodak took advantage of the Estate’s good graces by obtaining extensions to respond to its demands, all the while buying time to file a pre-emptive action in North Dakota. See ¶ 6. It is evident that the declaratory judgment in North Dakota was brought for the purpose of preempting the District Court in Montana from exercising control over the judicial processes necessary to resolve this dispute. We agree with Justice Maring that the North Dakota rulings simply constituted an “advisory opinion” on choice of law and stacking. Nodak, 687 N.W.2d at 236 (Maring, J., dissenting). The District Court in Montana was not bound by those rulings.
¶60 We are troubled by Nodak’s invocation of full faith and credit in an attempt to confer upon District Courts in North Dakota interlocutory control over District Courts in Montana. Nodak can point to no cases where full faith and credit has given one state the power to issue declaratory judgments aimed at exerting such control over ongoing litigation in a forum state. Permitting North Dakota’s declaratory judgments to have preclusive effect over Montana courts in this case “would mean in effect that the courts of [North Dakota] can control what goes on in the courts of [Montana].” Baker, 522 U.S. at 236 n. 9, 118 S. Ct. 665 n. 9 (quotation omitted).
¶61 We emphasize that our decision here is not based upon the fact that anti-stacking statutes are contrary to public policy in Montana. We acknowledge there is no public policy exception to full faith and credit. We also recognize that this case presents a unique set of circumstances for which no clear rule in the full faith and credit jurisprudence has been established. See Baker, 522 U.S. at 245, 118 S. Ct. at 670 (Kennedy, J., concurring) (noting that the United States Supreme Court has never exactly determined at what point “an otherwise valid judgment cannot intrude upon essential process of courts outside of the issuing State ....”). Nonetheless, we conclude it would defeat the purpose of forging national unity to use full faith and credit to needlessly expand a single cause of action into multi-state litigation. If anything, such a use of the full faith and credit clause simply balkanizes the legal process, brings state courts into greater conflict, and diminishes respect for the type of state sovereignty the first Congress envisioned. For these reasons, we conclude the District Court did not err in declining to accord full faith and credit to the competing rulings issued by the North Dakota courts.
¶62 Issue Six: Does the doctrine of collateral estoppel preclude the Estate from litigating its UIM claims in Montana?
¶63 Nodak argues the doctrine of collateral estoppel barred the Estate from pursuing its UIM claims in Montana once the District Court in North Dakota had ruled on the choice of law and UIM claims. However, Nodak points to no authority which supports the application of collateral estoppel in situations where contemporaneous suits are unfolding. As we have stated “[c]ollateral estoppel, or issue preclusion, bars the reopening of an issue that has been litigated and determined in a prior suit.” Baltrusch v. Baltrusch, 2006 MT 51, ¶ 15, 331 Mont. 281, ¶ 15, 130 P.3d 1267, ¶ 15 (emphasis added). The suits in this matter were contemporaneous, with Montana and North Dakota ruling on various aspects of the cases at parallel times. The doctrine has no applicability in this context and did not operate to bar the Estate’s UIM claims in Montana. Furthermore, assuming arguendo collateral estoppel did apply here, the District Court was not required to grant the North Dakota rulings full faith and credit because they would impermissibly interfere with the Montana litigation as explained above in our discussion of Issue Five.
¶64 Issue Seven: Do principles of comity require the Montana courts to defer to the rulings from the North Dakota Supreme Court in this case?
¶65 Lastly, Nodak asserts that general principles of comity require Montana to defer to the sovereignty of North Dakota and give effect to the North Dakota Supreme Court’s ruling in Nodak. We disagree. As we noted above at ¶ 31, a state’s decision to extend comity to another state is entirely voluntary. Simmons, 206 Mont. at 289, 670 P.2d at 1385. Moreover, unlike full faith and credit, comity need not be extended in cases where “it would contravene the public or judicial policy of the forum state.” Kane v. Kane, 198 Mont. 335, 338, 646 P.2d 505, 507 (1982) (quotation omitted); Oberson v. Federated Mut. Ins. Co., 2005 MT 329, ¶ 10, 330 Mont. 1, ¶ 10, 126 P.3d 459, ¶ 10. As our foregoing analysis suggests, Montana is entitled to comity in this matter just as much as North Dakota. While we respect North Dakota’s interests in regulating the relationship between its resident insurers and their insureds, Montana has a number of weighty interests in this matter as we have discussed above. To paraphrase the District Court, comity should extend in all directions: east to west, as well as west to east.
CONCLUSION
¶66 For the foregoing reasons, the decision of the District Court is affirmed.
JUSTICES NELSON and MORRIS concur.
The portion of § 28-3-102, MCA, cited in Mitchell actually reads as follows: “A contract is to be interpreted according to the law and usage of the place where it is to he performed ....” (Emphasis added.)
As a technical matter, we note that full faith and credit requires a sister state to give a judgment the res judicata effect it would have in the State which initially-rendered the judgment. Carr, ¶ 39. Accordingly, it would be more appropriate to conduct the res judicata analysis under North Dakota law because the declaratory judgment was issued there. However, both parties have argued res judicata under Montana law, and neither party has alleged the res judicata criteria differ substantively between Montana and North Dakota.
As the Estate notes, Nodak never sought to have the declaratory judgment from North Dakota certified in Montana pursuant to the Uniform Enforcement of Foreign Judgments Act, §§ 25-9-501 to 508, MCA. As we stated in Carr “[t]he UEFJA provides the procedural framework for enforcing foreign judgment in the states that have enacted it.” Carr, ¶ 41. This raises the question-for the time being unresolved-as to whether a Montana court is required to pay any recognition to a declaratory judgment from a sister state which is not certified pursuant to the statutory requirements of the UEPJA, or whether the full faith and credit due the judgments from another state transcends this statutory framework.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 A.M.D. and A.A.D. appeal from the order of the District Court for the Eleventh Judicial District, Flathead County, terminating their parental rights to A.H.D. We affirm.
¶2 The issue on appeal is: Did the District Court abuse its discretion in terminating A.M.D.’s and A.A.D.’s parental rights to A.H.D?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 A.M.D. (hereinafter “Father”) and A.A.D. (hereinafter “Mother”) are the parents of three children: S.D., T.D., and A.H.D. A.H.D. was born on April 8, 2006, in Whitefish, Montana. Prior to A.H.D.’s birth, the Montana Department of Public Health and Human Services (DPHHS) removed S.D. (born November 20, 2002) and T.D. (born December 19, 2003) from their parents’ care and custody and placed the children in foster care.
¶4 DPHHS removed S.D. and T.D. from their parents’ home in rural Lake County, alleging that the home was unkempt and that there was a potential for neglect and abuse of the children. DPHHS prepared a treatment plan, which the District Court for the Twentieth Judicial District, Lake County, approved on February 15,2005. The treatment plan identified several grounds for S.D.’s and T.D.’s removal from the family home, including: poor hygiene in the children, lack of regular bathing of the children and failure to change diapers regularly; lack of a set bedtime for the children; disarray in the home including overflowing garbage, dirty dishes, and animal waste; broken windows, no smoke alarm, and no working lights in the home; Father’s extremely limited role in caring for the children due to his frequent absence as a long haul truck driver; and allegations that Mother failed to properly administer medications to the children. Shortly after DPHHS removed S.D. and T.D. and placed the children in foster care, the parents moved to Whitefish, Montana, where A.H.D. was born.
¶5 Upon her discharge from the hospital, DPHHS placed A.H.D. in foster care with her siblings in Lake County. On April 11, 2006, the Deputy Flathead County Attorney, on behalf of DPHHS, filed a Petition for Emergency Protective Services, Adjudication as Youth in Need of Care and Temporary Legal Custody with the District Court. DPHHS asserted that it had probable cause to believe that A.H.D. was abused or neglected or in danger of being abused or neglected. DPHHS also alleged that there was sufficient evidence that A.H.D. was a youth in need of care based on the parents’ inability to safely and appropriately parent A.H.D. DPHHS attached an affidavit to the petition from social worker Lori Schlenz.
¶6 The next day, the District Court entered an Order to Show Cause, Order Granting Emergency Protective Services and Notice of Show Cause Hearing. The District Court found that there was probable cause to believe that A.H.D. was abused or neglected or in danger of being abused or neglected and that immediate protection of the child was required. The District Court appointed a guardian ad litem for A.H.D. and ordered that a show cause hearing be held on April 28, 2006. The court held the hearing and found A.H.D., by a preponderance of the evidence, to be an abused or neglected child, designated her as a youth in need of care, and granted the State’s petition for emergency protective services and temporary legal custody.
¶7 While A.H.D.’s matter was pending, the Lake County District Court entered an order terminating Father’s and Mother’s parental rights to S.D. and T.D. on June 26, 2006 (hereinafter “Lake County termination order”), after finding that the parents failed to comply with the majority of the treatment plan objectives. The court noted that a licensed clinical psychologist found that Mother had little capacity for true intimacy or true self-reflection and exhibited symptoms of depression, moodiness, and passive-aggressive behavior. The District Court noted that Mother quit therapy after a few sessions and failed to return. The District Court also found that the parents failed to attend parenting classes and cancelled scheduled appointments. In regard to the family’s living environment, the District Court found that DPHHS was unable to inspect the parents’ Whitefish home due to a lack of cooperation from the parents. The District Court found that the parents failed to contact the social worker on a regular basis, and when the parents did call, unless prompted, they failed to inquire as to the welfare of their children. Based on these findings, the court concluded that Father and Mother failed to comply with the treatment plan, and that the conduct or condition rendering them unfit was unlikely to change within a reasonable time.
¶8 Two months after the termination of Father’s and Mother’s parental rights to S.D. and T.D., DPHHS filed a Petition for Determination that Preservation or Reunification Services Need Not be Provided, in regard to A.H.D., pursuant to § 41-3-423(2), MCA. The parents filed a motion to dismiss the State’s petition, and the District Court held a two-part hearing on the petition on December 18, 2006, and February 9, 2007. Father, Mother, social worker Schlenz, and visitation specialists Kelli Becker and Syndee Hunter testified at the hearing.
¶9 On March 12, 2007, the District Court issued an Order Determining that Preservation or Reunification Services Need Not be Provided, and Setting Permanency Plan Hearing (hereinafter “March 12 order”). The court made extensive findings of fact regarding Father’s and Mother’s parenting issues, the previous termination of their parenting rights, their failure to comply with the treatment plan, and their failure to attend visitation sessions with A.H.D. The court specifically found that the circumstances related to the termination of Father’s and Mother’s parental rights to S.D. and T.D. were relevant to their ability to adequately care for A.H.D. Pursuant to § 41-3-423(2), MCA, the court ordered that DPHHS need not make efforts to provide preservation or reunification services to Father and Mother.
¶10 The District Court subsequently approved DPHHS’s permanency plan for A.H.D. Shortly thereafter, DPHHS filed a Petition for Termination of Parental Rights with Right to Consent to Adoption and Notice of Hearing. The court held a hearing on June 8, 2007, and granted the State’s petition. In its Findings of Fact, Conclusions of Law, and Order Terminating Parental Rights with Right to Consent to Adoption and Granting Permanent Legal Custody (hereinafter “termination order”), the court incorporated the findings and conclusions of the March 12 order and took judicial notice of the prior proceedings, including the testimony at the two hearings. The court found that the parents’ inability to satisfy the elements of the treatment plan for S.D. and T.D., continuing concerns with their parenting deficiencies, their inability to improve their parenting skills, and their failure to visit A.H.D. when given opportunities to do so, indicated their inability to exercise their fundamental parental rights. The court found and concluded that the reasons for the involuntary termination of Father’s and Mother’s parental rights to S.D. and T.D. were relevant to their ability to adequately care for A.H.D., and that the best interests of A.H.D. would be served by terminating the parent-child relationship. This appeal followed.
STANDARD OF REVIEW
¶11 We review a district court’s decision to terminate an individual’s parental rights to determine whether the lower court abused its discretion. In re A.S., 2006 MT 281, ¶ 24, 334 Mont. 280, ¶ 24, 146 P.3d 778, ¶ 24. Our review for abuse of discretion is “whether the trial court acted arbitrarily, without employment of conscientious judgment, or exceeded the bounds of reason resulting in substantial injustice.” In re A.S., ¶ 24.
¶12 However, because a parent’s right to the care and custody of a child is a fundamental liberty interest, the right must be protected by fundamentally fair procedures. In re D.B., 2007 MT 246, ¶ 17, 339 Mont. 240, ¶ 17, 168 P.3d 691, ¶ 17. Prior to terminating an individual’s parental rights, a district court must adequately address each applicable statutory requirement. In re D.B., ¶ 17. “To satisfy the relevant statutory requirements for terminating a parent-child relationship, a district court must make specific factual findings.” In re Custody and Parental Rights of C.J.K., 2005 MT 67, ¶ 13, 326 Mont. 289, ¶ 13, 109 P.3d 232, ¶ 13. We review a district court’s findings of fact to determine whether the findings are clearly erroneous. In re L.H., 2007 MT 70, ¶ 13, 336 Mont. 405, ¶ 13, 154 P.3d 622, ¶ 13. “A finding of fact is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence or if, upon reviewing the record, this Court is left with the definite and firm conviction that the district court made a mistake.” In re L.H., ¶ 13. We review a district court’s conclusions of law for correctness. In re L.H., ¶ 13.
¶13 “The district court is bound to give primary consideration to the physical, mental and emotional conditions and needs of the children. Consequently, the best interests of the children are of paramount concern in a parental rights termination proceeding and take precedence over the parental rights.” In re C.J.K., ¶ 14 (citing § 41-3-609(3), MCA). “Moreover, the party seeking to terminate parental rights must demonstrate by clear and convincing evidence that the statutory requirements for termination have been met.” In re C.J.K., ¶ 14.
DISCUSSION
¶14 Issue One. Did the District Court abuse its discretion in terminating A.M.D.’s and A.A.D.’sparental rights toA.H.D?
¶15 Sections 41-3-601-612, MCA, provide for the termination of the parent-child relationship. In re K.J.B., 2007 MT 216, ¶ 25, 339 Mont. 28, ¶ 25, 168 P.3d 629, ¶ 25. Section 41-3-602, MCA, states:
This part provides procedures and criteria by which the parent-child legal relationship may be terminated by a court if the relationship is not in the best interest of the child. The termination of the parent-child legal relationship provided for in this part is to be used in those situations when there is a determination that a child is abused or neglected, as defined in 41-3-102.
¶16 Accordingly, to proceed with a termination under §§ 41-3-601-612, MCA, there must be a determination that the child is “abused or neglected.” Section 41-3-102(3), MCA, defines “abused or neglected” as “the state or condition of a child who has suffered child abuse or neglect.” Section 41-3-102(7)(a)(i)-(iii), MCA, then defines “child abuse or neglect” as: “(i) actual physical or psychological harm to a child; (ii) substantial risk of physical or psychological harm to a child; or (iii) abandonment.” Section 41-3-102(7)(b)(i)(A), MCA, also notes that the term “child abuse or neglect” includes “actual physical or psychological harm to a child or substantial risk of physical or psychological harm to a child by the acts or omissions of a person responsible for the child’s welfare ....” A “youth in need of care” is “a youth who has been adjudicated or determined, after a hearing, to be or to have been abused, neglected, or abandoned.” Section 41-3-102(34), MCA.
¶17 After the District Court determines that the child is abused or neglected, the court is authorized to terminate the parent-child relationship if it finds that any of the criteria enumerated in § 41-3-609(1), MCA, exist. In re ¶¶ 27, 29. Most relevant to this matter, § 41-3-609(l)(d), MCA, provides that:
The court may order a termination of the parent-child legal relationship upon a finding established by clear and convincing evidence ... that any of the following circumstances exist:
(d) the parent has subjected a child to any of the circumstances listed in 41-3-423(2)(a) through (2)(e) ....
¶18 Although DPHHS is generally obligated to make reasonable efforts to prevent removal of a child from the child’s home and to reunify separated families under § 41-3-423(1), MCA, there are several key exceptions. Section 41-3-423(2)(e), MCA, states:
Except in a proceeding subject to the federal Indian Child Welfare Act, the department may, at any time during an abuse and neglect proceeding, make a request for a determination that preservation or reunificati on services need not be provided. If an indigent parent is not already represented by counsel, the court shall immediately provide for the appointment or assignment of counsel to represent the indigent parent in accordance with the provisions of 41-3-425. A court may make a finding that the department need not make reasonable efforts to provide preservation or reunification services if the court finds that the parent has:
(e) had parental rights to the child’s sibling or other child of the parent involuntarily terminated and the circumstances related to the termination of parental rights are relevant to the parent’s ability to adequately care for the child at issue.
Section 41-3-423(2)(a)-(e), MCA, frees DPHHS from making further efforts to reunify the family once the statutory elements are met. In re Custody and Parental Rights of A.P., 2007 MT 297, ¶ 17, 340 Mont. 39, ¶ 17, 172 P.3d 105, ¶ 17.
¶19 With this statutory scheme in mind, we can now turn to the parents’ specific contention that the District Court erred when it terminated their parental rights to A.H.D. Father and Mother assert that the District Court erred in two ways: (1) the District Court failed to specify which circumstances of their previous involuntary termination were relevant to their ability to adequately care for A.H.D., and (2) the District Court did not find by clear and convincing evidence that these circumstances existed. The parents’ arguments can be addressed in turn.
A. Specific Circumstances of Prior Involuntary Termination
¶20 Father and Mother contend that the District Court failed to specify which circumstances of the previous involuntary termination were relevant to their ability to care for A.H.D. The parents claim that the termination order did not reference any specific circumstances of the previous termination. They argue that without the specific circumstances, “a court cannot compare A.H.D.’s situation to the situation of her siblings, let alone determine that clear and convincing evidence establishes that those circumstances are relevant to the current termination proceeding.” Accordingly, the parents assert that the District Court abused its discretion when it failed to make such specific findings.
¶21 As outlined above, the court may order the termination of the parent-child relationship, upon a finding established by clear and convincing evidence, that any of the circumstances enumerated in § 41-3-609(l)(a)-(f), MCA, exist. Section 41-3-609(1), MCA; In re K.J.B., ¶ 27. One of these circumstances is that the parent has subjected a child to any of the circumstances listed in § 41-3-423(2)(a)-(e), MCA. Section 41-3-609(l)(d), MCA; In re K.J.B., ¶ 27. Most relevant to this appeal, § 41-3-423(2)(e), MCA, provides that DPHHS need not make reasonable efforts to provide preservation or reunification services if the court finds that the parent has “had parental rights to the child’s sibling or other child of the parent involuntarily terminated and the circumstances related to the termination of parental rights are relevant to the parent’s ability to adequately care for the child at issue.” Section 41-3-423(2)(e), MCA; In re K.J.B., ¶ 28. “We have determined that the circumstances of a prior termination continue to be relevant in a later termination of a sibling under §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, -unless the circumstances have changed.” In re A.P., ¶ 30. “To satisfy the relevant statutory requirements for terminating a parent-child relationship, a district court must make specific factual findings.” In re K.J.B., ¶ 23.
¶22 The State asserts that the District Court’s termination order must be read in conjunction with the Lake County termination order and the March 12 order. Stating that the findings and conclusions in the March 12 order were relevant and applicable, the District Court incorporated them into the termination order. In the March 12 order, the District Court specifically found that Father and Mother had their parental rights to S.D. and T.D. involuntarily terminated pursuant to § 41-3-609(l)(f), MCA, and the circumstances related to the termination of their parental rights were relevant to their ability to adequately care for A.H.D. In the termination order, the District Court reiterated that these findings were the ground for the court’s determination that reunification services need not be provided.
¶23 We agree with the State that the District Court did not err in determining that the circumstances related to the termination of Father’s and Mother’s parental rights with respect to S.D. and T.D. were relevant to their ability to adequately care for A.H.D. The order terminating Father’s and Mother’s parental rights to A.H.D. must be considered in conjunction with the March 12 order, along with the testimony presented at the two hearings. In the termination order, the District Court specifically found that the parents’ “inability to satisfy the elements of their Lake County Treatment Plan and their ultimate termination of parental rights, as well as the continuing concerns with the same parenting deficiencies, their inability to improve their parenting skills, and their failure to visit their child despite being given opportunities to do so, indicate their inability to exercise their fundamental parental rights as the child’s parents.”
¶24 The District Court found that it had been determined that Mother had little capacity for true intimacy or true self-reflection and exhibited “an essentially unresolved dismissive style of attachment consistent with her lack of attachments during childhood.” Although the treatment plan recommended intensive therapy for Mother, the District Court found that she failed to follow through with counseling and quit attending sessions in the spring of 2005. In addition, Father refused to attend therapy sessions with Mother as recommended and did not follow through with obtaining another psychological evaluation and parenting assessment as recommended.
¶25 The District Court also found that the parents failed to follow through with several of the parenting services provided for them in relation to S.D. and T.D. Specifically, the District Court found that they attended only 23.45 hours of an offered 109.5 hours of parenting education. The District Cotut further found that of the 65 arranged visits between the parents and S.D. and T.D., the parents arrived late for most visits, cancelled 26 visits, and failed to appear for three visits, despite DPHHS providing them with transportation. Furthermore, the parents cancelled scheduled appointments with service providers, including AWARE and the Child Development Center, and failed to maintain contact with their social workers. The District Court also found, citing the Lake County termination order, that in the approximately sixteen months that the Lake County DPHHS worked with Father and Mother, they were given every opportunity to comply with their treatment plan, but “they chose not to do so.”
¶26 The District Court’s findings of fact pertaining specifically to the parenting of A.H.D. support its conclusion that the above-described circumstances related to the termination of parental rights as to S.D. and T.D. remained relevant to the parents’ ability to adequately care for A.H.D. The District Court first noted that at the time of the hearings, A.H.D. was eight to ten months old, and in the previous termination, T.D. was ten months to two years old. The District Court found that the same risks that were present for T.D., given her infancy and reliance on caregivers for basic needs, applied to A.H.D.
¶27 The District Court addressed the testimony of visitation specialist Kelli Becker, who noted that Mother continued to require prompting as to meeting A.H.D.’s basic needs and that she was unable to consistently replicate or demonstrate these parenting skills during visits with A.H.D. The District Court specifically found that Mother had exhibited these same basic parenting limitations with her older children, thus demonstrating that the circumstances that led to the previous termination remained relevant to Mother’s ability to care for A.H.D.
¶28 Furthermore, the District Court found that in the visits with A.H.D., the parents demonstrated considerable difficulty in accepting redirection or changing behaviors that were detrimental to their children. The District Court found that Mother continued to demonstrate a lack of understanding of basic parenting skills, while Father failed to demonstrate an ability to carry out regular parenting activities and typically directed Mother to complete the parenting tasks while he observed. The District Court found that he was unsupportive of Mother, which contradicted counselor recommendations.
¶29 The District Court also noted Mother’s failure to follow through with mental health recommendations. The court found that she had “significant mental health issues” including depression and emotional issues that impacted her ability to parent. Based on the testimony of social workers Schlenz and Becker at the hearing, the court found that despite recommendations for therapy and referrals to parenting classes, Mother failed to engage in those services. Given Mother’s and Father’s failure to comply with therapy or parenting class recommendations in the previous termination, the District Court’s findings with regard to A.H.D. again demonstrate that the circumstances that led to the previous termination continued to be relevant.
¶30 On the issue of visitation, the District Court found that although DPHHS provided resources and continued to facilitate visitations, “the [parents] continued their pattern of failing to participate in offered services.” The District Court specifically noted their failure to maintain contact with social worker Schlenz. When the parents did contact Schlenz, the District Court found that the contacts were often fraught with hostility and resistance from the parents. The District Court specifically noted that the parents chose to “take a break” from doing visits with A.H.D. following the termination of their parental rights to S.D. and T.D., which the court said demonstrated their lack of dedication to parenting. Father and Mother did not have a single visit with A.H.D. from July 5, 2006 to October 6, 2006, which the court found was predominantly due to the parents’ failure to contact DPHHS. The court found that their pattern of missing visits with A.H.D. continued in 2007 as well. These findings clearly support the District Court’s finding that the circumstances related to the termination of Father’s and Mother’s parental rights to S.D. and T.D. remained relevant to their ability to care for A.H.D., given their documented prior failings in keeping in contact with DPHHS.
¶31 The District Court further found that from
August of 2004 to May of 2006, the [parents] exhibited patterns of behavior demonstrating an inability to provide basic parenting for their eldest children; these patterns are certainly germane to their ability to care for A.H.D. in light of the pervasiveness of their indifference towards parenting S.D. and T.D. (i.e., not an isolated incidence or issue). These patterns continued from the time of A.H.D.’s birth to the present. The [parents] lack insight into fundamental parenting knowledge and have been oppositional to all services offered to assist them in improving their skills.
Later, the court specifically found that the parents “have failed to demonstrate consistency and predictability in meeting the needs of their child(ren) and the same concerns that were present in the Lake County case that lead [sic] to termination of their parental rights remain a concern as to their ability to parent A.H.D.”
¶32 The findings of fact in both the March 12 order and the termination order clearly demonstrate and support the District Court’s finding that the circumstances that led to the termination of Father’s and Mother’s parental rights to S.D. and T.D. were on-going in nature and remained relevant to their ability to care for A.H.D. Father and Mother failed to comply with the Lake County treatment plan. As a result, the Lake County District Court terminated the parent-child relationship between the parents and S.D. and T.D. The same circumstances that illustrated their failure to comply with the treatment plan were clearly present and unchanged in their parenting of A.H.D., as demonstrated by the District Court’s findings. Contrary to the parents’ assertion, the District Court specifically identified the circumstances of the earlier termination that remained relevant to the termination of their rights to A.H.D.
¶33 To the extent that Father and Mother challenge whether any “peculiar circumstances” existed at all to support the termination of their parental rights, we note that the District Court’s findings of fact were supported by substantial evidence. In its findings of fact, the District Court even cited to the record and the testimony at the hearings. The parents point out that S.D. and T.D. were removed from the family home due to unsafe living conditions and claim that these circumstances are easily remedied. The parents note that they moved to a new home in a different city prior to A.H.D.’s birth and they testified at trial that the home was safe and clean for a child. The parents claim that no one from the department even inspected the new home and that the District Court failed to mention this change in circumstances in its findings. The parents’ contention is without merit, however, as we note that in the Lake County termination order, the Lake County District Court found that DPHHS was unable to inspect the parents’ Whitefish home because of the parents’ vague schedule and lack of cooperation in arranging visits. The Flathead County District Court also made specific findings illustrating the difficulties DPHHS had in maintaining contact with the parents. Ultimately, the District Court’s findings and a review of the record demonstrate that there were numerous circumstances supporting the termination of Father’s and Mother’s parental rights.
¶34 We hold that the District Court did not err in finding that the circumstances related to the termination of Father’s and Mother’s parental rights to S.D. and T.D. were relevant to their ability to care for A.H.D.
B. Clear and Convincing Evidence Finding
¶35 Father and Mother next argue that the District Court erred when it failed to find that the circumstances that led to the termination of their parental rights to S.D. and T.D. were established by clear and convincing evidence. The parents contend that “the District Court only found that clear and convincing evidence established that a previous judicial determination was made that reunification services need not be provided:” They assert that the District Court’s failure to enter a new finding in its termination order was in error.
¶36 Section 41-3-609(l)(d), MCA, states that “[t]he court may order a termination of the parent-child legal relationship upon a finding established by clear and convincing evidence ... that any of the following circumstances exist: (d) the parent has subjected a child to any of the circumstances listed in 41-3-423(2)(a) through (2)(e) ....” Because the termination of parental rights involves a fundamental liberty interest, a district court must adequately address each statutory requirement to determine if it has been established. In re A.P., ¶ 27. We have held that “the party seeking to terminate parental rights must demonstrate by clear and convincing evidence that the statutory requirements for termination have been met.” In re C.J.K., ¶ 14.
¶37 In the termination order the District Court found:
Based upon the foregoing, clear and convincing evidence exists that
1. There has been a judicial determination that Reunification Services Need Not be Provided to birth-mother... and birth-father ... based upon the following:
a. The birth-parents’ parental rights to T.D. and S.D., [A.H.D.]’s siblings, were involuntarily terminated in the Twentieth Judicial District Court, Lake County, Montana;
b. The circumstances related to that termination of parental rights are relevant to the parents’ ability to adequately care for [A.H.D.].
In the March 12 order, the District Court prefaced its recitation of the findings of fact by stating “the Court hereby determines the following [findings of fact], based upon clear and convincing evidence ....” The court then specifically found that “[t]he circumstances related to the termination of parental rights as to S.D. and T.D. are relevant to the birth-parents’ ability to adequately care for the above-named child, A.H.D.”
¶38 It is clear from a review of the District Court’s two orders that the court addressed the applicable burden of proof and found that the State established, by clear and convincing evidence, that the circumstances related to the termination of Father’s and Mother’s parental rights to S.D. and T.D. were relevant to their ability to adequately care for A.H.D. As noted above, the termination order must be read in conjunction with the March 12 order, as the earlier findings were expressly incorporated into the termination order. In the March 12 order, the District Court based its findings on clear and convincing evidence. To the extent that the parents contend that the District Court failed to make a new “clear and convincing evidence finding” in the termination order and that “over six months passed between the hearing on the matter of whether reunification services needed to be provided and the district court’s ultimate termination of parental rights” we note that, at the termination hearing, the court took judicial notice of the prior hearing testimony and proceedings, and the parents’ counsel at the termination hearing stated that he and the parents agreed that it would “be duplicative ... and unnecessary to essentially present the same testimony over again.” The District Court’s finding was not “stale” as it was agreed that the hearing testimony that led to the March 12 findings of fact was still relevant and applicable. Accordingly the District Court did not err in relying on the testimony presented at the earlier hearings and incorporating earlier findings based on evidence presented at those hearings, as the testimony was still relevant to the termination proceedings.
¶39 DPHHS presented clear and convincing evidence establishing that the circumstances related to the termination of Father’s and Mother’s parental rights to S.D. and T.D. were relevant to their ability to adequately care for A.H.D. The District Court made specific findings as to the statutory requirements of §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, and we hold that the District Court did not abuse its discretion in terminating Father’s and Mother’s parental rights to A.H.D.
¶40 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES COTTER, WARNER and RICE concur.
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OPINION AND ORDER
¶1 Keith Mordja petitions for a writ of supervisory control to direct Judge Lympus and the Eleventh Judicial District Court to grant his motion to dismiss on the grounds that the statute of limitations has expired. The petition is denied.
¶2 We restate the issue as follows:
¶3 Where a statute is amended to extend the limitations period for a criminal offense, does the extended limitations period apply to offenses not barred at the time of amendment?
BACKGROUND
¶4 On January 29, 2007, Mordja was charged with one count of sexual intercourse without consent in violation of § 45-5-503(3), MCA (2005). Mordja allegedly raped J.B., a minor, repeatedly during the years 1994-2000. J.B. turned eighteen on March 25, 2001.
¶5 Section 45-1-205, MCA (1989), provides that if a victim was a minor at the time of the offense, the offender may be prosecuted under § 45-5-503, MCA, up to five years after the victim turns eighteen. In 2001, the Legislature amended § 45-1-205, MCA, to extend the statute of limitations to expire ten years after the victim turns eighteen.
¶6 The crucial question is whether the statute of limitations has expired in Mordja’s case. The Flathead County Attorney’s office charged Mordja five years and ten months after J.B.’s eighteenth birthday. Mordja moved to dismiss the charges against him, on the grounds that the statute of limitations had expired. The District Court denied his motion, holding that the amended ten-year statute of limitations applied to Mordja. The District Court held that since § 45-1-205, MCA, was amended before the original statute of limitations expired in Mordja’s case, i.e., before his prosecution was barred, the new limitations period applied to him.
DISCUSSION
¶7 Where a statute is amended to extend the limitations period for a criminal offense, does the extended limitations period apply to offenses not barred at the time of amendment?
¶8 In denying Mordja’s motion to dismiss, the District Court relied on our holding in State v. Duffy, a factually similar case which concerns the 1989 amendment to § 45-1-205, MCA. State v. Duffy, 2000 MT 186, 300 Mont. 381, 6 P.3d 453. Prior to 1989, § 45-1-205, MCA, allowed a five-year statute of limitations on § 45-5-503, MCA, offenses. The 1989 amendment changed this statute of limitations to extend five years after the victim reached the age of eighteen, if the victim was a minor at the time of the offense. Section 45-1-205, MCA (1989). The Duffy Court upheld the retroactive application of the expanded statute of limitations, and concluded that it did not violate ex post facto principles because the extension of the statute of limitations was merely a procedural change. Duffy, ¶ 32.
¶9 However, as Mordja argues, there is a crucial difference which distinguishes Duffy from the instant case: the 1989 amendment to § 45-1-205, MCA, contained an express provision making it retroactively applicable, while the 2001 amendment at issue here did not.
¶10 Section 1-2-109, MCA, creates a strong presumption that statutes do not have retroactive effect unless the Legislature specifically states otherwise: “No law contained in any of the statutes of Montana is retroactive unless expressly so declared.” Section 1-2-109, MCA. Since the Legislature failed to include a clause expressly providing for the retroactive application of § 45-1-205, MCA (2001), Mordja argues that § 1-2-109, MCA, prohibits the amended statute of limitations from being applied to him. In response, the State argues that § 1-2-109, MCA, does not apply to procedural matters such as changes in statutes of limitations.
¶11 Does the application of an extended statute of limitations to prosecutions not barred at the time of the amendment violate the prohibition against retroactive laws found in § 1-2-109, MCA?
¶12 1. Does § 1-2-109, MCA, apply to procedural statutes ?
¶13 The question of whether § 1-2-109, MCA, applies to so-called “procedural” statutes, such as changes in statutes of limitations, is not one of first impression before this Court. Unfortunately, our case law provides conflicting answers.
¶14 In Penrod v. Hoskin, M.D., this Court refused to retroactively apply a newly adopted statute of limitations absent an express retroactivity clause. Penrod v. Hoskin, M.D., 170 Mont. 277, 281, 552 P.2d 325, 327 (1976). The Penrod Court cited § 12-201, R.C.M. 1947, the predecessor to § 1-2-109, MCA, and held:
[Section 12-201] creates a presumption against construing a statute retroactively .... While our Constitution does not forbid the enactment of retrospective laws generally, it is a rule recognized by authorities everywhere that retrospective laws are looked upon with disfavor. It is a maxim said to be as old as the law itself that a new statute ought to be prospective, not retrospective, in its operation. The maxim has its foundation in the presumption that the legislature does not intend to make a new rule for past transactions and every reasonable doubt will be resolved against a retrospective operation. The intent of the legislature to give a statute retroactive effect as required by section 12-201, must be determined by the statute itself and from no other source. We find nothing in [the new statute of limitations] exhibiting a legislative intent that it be applied retroactively. Absent such intent, it is applicable only prospectively.
Penrod, 170 Mont. at 281, 552 P.2d at 327 (citations and internal quotation marks omitted). Accord State v. Wright, 2001 MT 247, ¶ 11, 307 Mont. 100, ¶ 11, 38 P.3d 772, ¶ 11 (applying § 1-2-109, MCA, to analyze an amended statute of limitations); Odenbach v. Buffalo Rapids Project, 225 Mont. 96, 99, 731 P.2d 1297, 1299 (1987); City of Harlem v. State Highway Commission, 149 Mont. 281, 284-85, 425 P.2d 718, 720 (1967).
¶15 However, there is also substantial precedent on point which holds that § 1-2-109, MCA, does not apply to procedural statutes. For example, in Haugen v. Blaine Bank of Montana, we held that “where a statute is procedural, rather than substantive, § 1-2-109, MCA, has no application, and the statute in question will be applied to a cause of action arising before its enactment.” Haugen v. Blaine Bank of Montana, 279 Mont. 1, 8-9, 926 P.2d 1364, 1368 (1996). More recently, in Keeney v. Dept. of Justice, we held that “new legislation that affects only procedural matters and does not relate to a parties’ [sic] substantive rights falls outside the ambit of § 1-2-109, MCA.” Keeney v. Dept. of Justice, 2006 MT 152, ¶ 12, 332 Mont. 446, ¶ 12, 139 P.3d 814, ¶ 12. Accord Saint Vincent Hosp. v. Blue Cross, 261 Mont. 56, 61, 862 P.2d 6, 9 (1993); State Compensation Ins. v. Sky Country, 239 Mont. 376, 379, 780 P.2d 1135, 1137 (1989); Matter of R.A.D., 231 Mont. 143, 150, 753 P.2d 862, 866 (1988); Boehm v. Alanon Club, 222 Mont. 373, 377, 722 P.2d 1160, 1162 (1986), overruled on other grounds, Richardson v. Corvallis Pub. Sch. Dist. No. 1, 286 Mont. 309, 950 P.2d 748 (1997); Weiss By and Through Weiss v. State, 219 Mont. 447, 449, 712 P.2d 1315, 1316 (1986).
¶16 2. Is the extension of a statute of limitations to prosecutions not yet barred “retroactive” within the meaning of§ 1-2-109, MCA?
¶17 In their preoccupation with distinguishing substance from procedure, these conflicting precedents have skipped an elementary step in interpreting § 1-2-109, MCA. First, we must ask whether the extension of a statute of limitations to prosecutions not yet barred actually constitutes a “retroactive” application of the law within § 1-2-109, MCA.
¶18 Section 1-2-109, MCA, provides that “[n]o law contained in any of the statutes of Montana is retroactive unless expressly so declared.” Section 1-2-109, MCA. In State v. Coleman, we discussed the meaning of “retroactive,” as used in § 1-2-109, MCA:
[Section 1-2-109] is but a rule of construction and what is “retroactive” so as to warrant application of the rule has been defined judicially by this and other courts. A statute is not “retroactive” merely because it draws upon antecedent facts for its operation. Cox v. Hart, 260 U.S. at 157, 43 S.Ct. 154. A statute is “retroactive” in a legal sense “which takes away or impairs vested rights acquired under existing laws or creates a new obligation, imposes a new duty or attaches a new disability in respect to transactions already past.” City of Harlem v. State Highway Commission (1967), 149 Mont. 281, 425 P.2d 718, 720; Dunham v. Southside National Bank (1976), 169 Mont. 466, 548 P.2d 1383, 1386; Butte & Superior Mining Co. v. McIntyre (1924), 71 Mont. 254, 229 P. 730; Sturges v. Carter (1885), 114 U.S. 511, 5 S.Ct. 1014, 29 L.Ed. 240.
State v. Coleman, 185 Mont. 299, 317, 605 P.2d 1000, 1012 (1979), rev’d in part on other grounds, Coleman v. McCormick, 874 F.2d 1280 (9th Cir. 1989) (en banc). See also Haugen, 279 Mont. at 8, 926 P.2d at 1368; Williams v. Wellman-Power Gas, Inc., 174 Mont. 387, 390-92, 571 P.2d 90, 92-93 (1977). Thus, in the instant case, we must determine whether Mordja has any vested right in the statute of limitations, and whether the 2001 amendment impairs or strips his vested rights, or imposes a new duty, obligation or disadvantage upon him with respect to his past conduct.
¶19 In Cosgriffe v. Cosgriffe, we held that a defendant does not have any vested right or interest in a statute of limitations in the civil context, even after it expires. Cosgriffe v. Cosgriffe, 262 Mont. 175, 864 P.2d 776 (1993). In Cosgriffe, an adult woman allegedly discovered through therapy that she was abused by her father when she was a teenager. She brought suit against her father under § 27-2-216, MCA, which allows victims to sue within three years of discovering the abuse. Section 27-2-216, MCA, was enacted in 1989, years after the alleged abuse occurred. The father argued that the section violated his due process rights by retroactively extending the statute of limitations, and improperly reviving a claim which was barred under the conventional statute of limitations for tort actions. Cosgriffe, 262 Mont. at 179-80, 864 P.2d at 778-79.
¶20 The Cosgriffe Court rejected the father’s claim that “the running of the previously-applicable statute of limitations vests him with a right to be free from the appellant’s claim after the expiration of the conventional statute of limitations,” and held he had no “vested interest” in being free of his daughter’s claim. Cosgriffe, 262 Mont. at 179-80, 864 P.2d at 779. The Court held that the retroactive application of a new or amended statute of limitations did not violate due process rights, explaining that “[sjtatutes of limitation, being somewhat arbitrary in their nature, and founded in public needs and public policy, may shorten the periods in which actions shall be commenced, or may extend them, and yet not disturb vested rights, or rights of property.” Cosgriffe, 262 Mont. at 180, 864 P.2d at 779 (citation omitted).
¶21 Of course, the holding of Cosgriffe cannot be adopted wholesale in a criminal context. The prohibition against ex post facto laws found in both the United States and the Montana Constitutions would prevent an amended statute of limitations from reviving a previously time-barred prosecution. U.S. Const, art. I, § 9; Mont. Const, art. II, § 31; Stogner v. California, 539 U.S. 607, 123 S. Ct. 2446 (2003). In Stogner, the United States Supreme Court struck down a California law which amended the statute of limitations governing sex-related child abuse crimes, and specifically revived any causes of action barred by previous statutes of limitations. Stogner, 539 U.S. at 632-33, 123 S. Ct. at 2461. The Court held that the California statute violated the ex post facto clause because it inflicted punishment upon Stogner where, by law, he was not liable to any punishment. 539 U.S. at 613,123 S. Ct. at 2450 (citations omitted). However, the Stogner Court specifically distinguished cases concerning extensions of unexpired statutes of limitations, holding that such cases did not violate the ex post facto clause. 539 U.S. at 618, 123 S. Ct. at 2453.
¶22 In interpreting Stogner, several courts have noted that a defendant has no vested right in a statute of limitations until it expires, and the prosecution is banned. See e.g. State v. Skakel, 888 A.2d 985, 1014-28 (Conn. 2006); State v. Martin, 849 A.2d 138, 140 (N.H. 2004). Thus, the amendment of an unexpired statute of limitations does not affect a vested right, and therefore does not violate due process or the prohibition against ex post facto laws. Skakel, 888 A.2d at 1021-22; Martin, 849 A.2d at 140. Judge Learned Hand aptly summarizes the differences at stake in the two scenarios:
Certainly it is one thing to revive a prosecution already dead, and another to give it a longer lease of life. The question turns upon how much violence is done to our instinctive feelings of justice and fair play. For the state to assure a man that he has become safe from its pursuit, and thereafter to withdraw its assurance, seems to most of us unfair and dishonest. But, while the chase is on, it does not shock us to have it extended beyond the time first set, or, if it does, the stake forgives it.
Falter v. United States, 23 F.2d 420, 425-26 (2d Cir. 1928), superseded by statute as stated in United States v. Roselli, 1993 U.S. Dist. LEXIS 18749 (N.D.N.Y. 1993).
¶23 In State v. Wright, this Court upheld the retroactive application of an amended statute of limitations with an express retroactivity provision to a prosecution not already barred. Wright, ¶ 11. The Wright Court concluded that because the “procedural change neither alters the definition of the crime nor increases the petitioner’s punishment, the amended statute of limitations is not subject to prohibition against ex post facto laws.” Wright, ¶ 11.
¶24 Though Stogner and its progeny employ an ex post facto analysis, the resulting conclusions are still relevant to the instant inquiry: a defendant cannot have a vested right in a statute of limitations that has not yet expired. As in Stogner and Wright, the extended statute of limitations in the case at bar does not increase Mordja’s punishment or subject him to new obligations. Mordja’s alleged sexual abuse of the minor was illegal both before and after § 45-1-205, MCA, was amended in 2001. The statute of limitations did not expire in Mordja’s case before § 45-1-205, MCA, was amended, thus Mordja did not have any vested right in an affirmative defense. Thus, the application of the extended statute of limitations to Mordja’s prosecution is not retroactive within the meaning of § 1-2-109, MCA.
¶25 We conclude that where a statute is amended to extend the limitations period for a criminal offense, the extended limitations period applies to all offenses not barred at the time the amendment was enacted. Penrod and any other cases reaching conclusions to the contrary are hereby overruled. The application of § 45-1-205, MCA (2001), to Mordja’s case is not “retroactive” within the meaning of § 1-2-109, MCA, because it does not affect any of his vested rights, nor does it impose any additional obligations or detriments upon him. The State had the right to prosecute Mordja at any time within the newly extended limitations period; thus the District Court did not err when it refused to grant Mordja’s motion to dismiss.
CONCLUSION
¶26 The Court having considered the petition for a writ of supervisory control filed herein by Petitioner,
¶27 IT IS ORDERED that the petition for a writ of supervisory control is denied.
¶28 The Clerk is directed to mail copies hereof to all counsel of record.
DATED this 30th day of January, 2008.
/S/ W. WILLIAM LEAPHART
/S/ JAMES C. NELSON
/S/ PATRICIA COTTER
/S/ BRIAN MORRIS
/S/JIM RICE
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 The Bonner Education Association (BEA) appeals from an order of the First Judicial District, Lewis and Clark County, granting the Bonner School District No. 14’s (District) motion for summary judgment. We reverse.
¶2 BEA presents the following issues for review:
¶3 Whether the District Court properly determined that teacher transfers and assignments are not mandatory subjects of bargaining under Montana’s Collective Bargaining for Public Employees Act.
¶4 Whether the District Court properly determined that the management rights clause of the collective bargaining agreement protected the District from an unfair labor practice claim when it transferred teachers without bargaining.
¶5 Whether the District Court properly remanded to the Hearings Officer the question of whether a long-standing practice should be treated as an express provision of a collective bargaining agreement.
PROCEDURAL AND FACTUAL BACKGROUND
¶6 The District hired a new superintendent, Doug Ardiana (Ardiana), between the 2002-2003 and 2003-2004 school years. Ardiana and BEA president Julie Foley (Foley) met to discuss Ardiana’s administrative plans before the start of the 2003-2004 school year. Ardiana informed Foley that he had reassigned teachers in other school districts in which he had worked, and that he would consider doing so in Bonner as he thought necessary to meet the needs of the District. The District involuntarily transferred and reassigned several teachers at Ardiana’s direction during the 2003-2004 school year.
¶7 The transfers and reassignments affected the subjects taught and the teachers’ areas of expertise. The District had not involuntarily transferred or reassigned teachers within the previous ten years. BEA responded on April 14, 2004, by filing an unfair labor practice claim with the Board of Personnel Appeals (Board). BEA alleged that the District improperly had refused to bargain for the transfers and reassignments. BEA alleged that the District violated §§ 39-31-401 and 39-31-305(2) MCA, by refusing to bargain in good faith with respect to a condition of employment.
¶8 BEA and the District were parties to a collective bargaining agreement (CBA) at the time. The term of the CBA ran from July 1, 2002, through June 30, 2004. The CBA did not specifically provide procedures for teacher transfers and reassignments. The CBA did include a management rights clause that recognized the School Board’s prerogative to manage the school district, “except as limited by explicit terms of [the CBA].”
¶9 The Board conducted a hearing to determine whether Montana law or the terms of the CBA required the District to bargain in good faith for the transfers. The Board considered both the explicit statutory management right to “hire, promote, transfer, assign, and retain employees...,” provided in § 39-31-303(2), MCA, and the statutory duty to bargain in good faith for conditions of employment, provided in § 39-31-305(2), MCA. The Board determined that involuntary teacher transfers constituted mandatory subjects of bargaining as conditions of employment and as conditions that “can have a great impact on the well-being of an individual teacher,” citing its own decision in Florence-Carlton Unit v. Board of Trustees of School District No. 15-6 (1979), ULP 5-77.
¶10 The Board also considered whether the CBA allowed the District to make involuntary teacher transfers and reassignments. The District asserted that the CBA’s management rights clause provided express authorization. The clause recognized the School Board’s “prerogativeG ... to operate and manage the school district and retain, without limitation, all powers, rights, authority, duties and responsibilities conferred upon and vested in it by law. . ..” The District claimed that this portion of the CBA expressly incorporated the statutory management rights set forth in § 39-31-303(2), MCA.
¶11 The Board rejected this interpretation of the CBA. The Board concluded that such a broad interpretation of management rights necessarily would defeat other express provisions of the CBA regarding teacher choice in staffing and hiring decisions. Moreover, the Board found the CBA to be ambiguous as to the parties’ intent to incorporate the statutory management right. The Board also concluded that a teacher’s right to continue teaching a subject or a grade represented a “professional advantage” explicitly preserved and protected under the CBA.
¶12 The Board finally determined that the CBA’s integration clause and the management rights clause did not constitute a waiver of BEA’s right to bargain for transfers and reassignments. The Board applied a federal interpretative scheme that considered the parties’ past bargaining history and the absence of an express waiver of BEA’s right in the CBA. The Board determined that the parties past bargaining practice of not addressing transfers and reassignments and the absence of an express waiver preserved BEA’s right to bargain for transfers and reassignments in the CBA. The Board therefore concluded that the District committed an unfair labor practice when it transferred or reassigned teachers without bargaining with BEA.
¶13 The District petitioned the District Court for judicial review. Both parties moved for summary judgment. The District Court determined that the statutory management right contained in § 39-31-303, MCA, expressly reserved to the District the right to transfer or assign involuntarily as evidenced by management’s “prerogativeG ... [to] hire, promote, transfer, assign, and retain employees ....” The District Court concluded that only “other working” conditions not expressly listed under § 39-31-303, MCA, represented mandatory subjects of collective bargaining.
¶14 The District Court also determined that the CBA’s management rights clause and the statutory management right authorized the District to transfer and assign unilaterally absent an express provision requiring bargaining for teacher transfers. The District Court declined to consider whether BEA had waived its right to bargain for transfers and assignments in light of its decision that the transfers and assignments fell within the District’s management rights. Finally, the District Court remanded to the hearing examiner the question of whether the District’s long-standing practice of not making unilateral transfers without bargaining should be treated as though it constituted an express term of the CBA. BEA appeals.
STANDARD OF REVIEW
¶15 A district court reviews an administrative agency’s findings of fact to determine whether they are clearly erroneous in view of the reliable, probative, and substantial evidence in the whole record. A district court will uphold an agency’s conclusion of law if the agency’s interpretation of the law is correct. We in turn employ the same standards when reviewing a district court’s decision. Roos v. Kircher Public School Bd., 2004 MT 48, ¶ 7, 320 Mont. 128, ¶ 7, 86 P.3d 39, ¶ 7. The interpretation of a collective bargaining agreement provision presents a question of law that this Court reviews to determine if it is correct. Hughes v. Blankenship, 266 Mont. 150, 154, 879 P.2d 685, 687 (1994).
DISCUSSION
¶16 Whether the District Court properly determined that teacher transfers and assignments are not mandatory subjects of bargaining under Montana’s Collective Bargaining for Public Employees Act.
¶17 Section 39-31-305(2), MCA, obligates a public employer to bargain “in good faith with respect to wages, hours, fringe benefits, and other conditions of employment....” This mandate is virtually identical to the collective bargaining mandate in title 29, section 158(d) of the United States Code, a section of the federal National Labor Relations Act (NLRA). Section 158(d) provides that the parties must negotiate “in good faith with respect to wages, hours, and other terms and conditions of employment ....’’29U.S.C. § 158(d). An employer commits an unfair labor practice under § 39-31-401(5), MCA, if it refuses to negotiate in good faith on any of these subjects. Neither the Montana Collective Bargaining for Public Employees Act, nor the NLRA defines “other conditions of employment.” We have not had the opportunity yet to examine the scope of “other conditions of employment.”
¶18 This Court has looked previously to federal courts’ construction of the NLRA as an aid to interpretation of the Montana Public Employees Collective Bargaining Act. Small v. McRae, 200 Mont 497, 502, 651 P.2d 982, 985 (1982) (citing State, Dept of Hwys. v. Public Employees Craft Court., 165 Mont. 349, 529 P.2d 785 (1974). The similarity between § 39-31-305(2), MCA, and 29 U.S.C. § 158(d), and the fact that we have not yet explored the scope of “other conditions of employment,” leads us to look to these federal decisions for instruction.
¶19 The U.S. Supreme Court and the National Labor Relations Board (NLRB) have construed conditions of employment broadly for purposes of the collective bargaining mandate. For example, the Court in Fibreboard Corp. v. NLRB, 379 U.S. 203, 209-16, 85 S. Ct. 398, 402-05 (1964), stated that the policy of fostering “industrial peace” represents a primary consideration when classifying a bargaining subject as a condition of employment under the NLRA. Similarly, the Court in Ford Motor Co. v. NLRB, 441 U.S. 488, 495, 99 S. Ct. 1842, 1848 (1979), pronounced that the courts must show deference to the NLRB’s classifications of bargaining subjects as conditions of employment. In Ford Motor Co., where the U.S. Supreme Court held that the setting of food prices for in-plant meals for employees constituted a condition of employment, it described conditions of employment as matters “plainly germane to the working environment,” and “not among those managerial decisions which lie at the core of entrepreneurial control.” Ford Motor Co., 441 U.S. at 498, 99 S. ct. at 1850 (citing Fibreboard Corp., 379 U.S. at 222-23, 85 S. Ct. at 409) (internal quotation marks omitted). Managerial decisions that “lie at the core of entrepreneurial control,” as distinguished from conditions of employment, include those things related to the “basic scope of the enterprise....” Fibreboard Corp., 379 U.S. at 223, 85 S. Ct. at 409 (Stewart, J. concurring).
¶20 The federal courts and the NLRB have determined that a diverse range of issues qualify as conditions of employment, and thus constitute mandatory bargaining subjects. The NLRB in Pepsi-Cola Bottling Co. of Fayetteville, 330 NLRB 900, 902-03 (2000), held that telephone access, break policies, and accounting for product shortfalls qualify as conditions of employment under the NLRA. Free agency and reserve issues in professional baseball constitute conditions of employment under the NLRA. Silverman v. Major League Baseball Player Comm., 67 F.3d 1054, 1060-62 (2d Cir. 1995). Rental rates for company houses also represent conditions of employment under the NLRA. American Smelting and Refining Co. v. NLRB, 406 F.2d 552, 553-55 (9th Cir. 1969).
¶21 The federal courts and the NLRB, in early cases interpreting the scope of the NLRA, specifically have held that employee transfers constitute conditions of employment that must he bargained under the NLRA. In Rapid Roller Co. v. NLRB, 126 F.2d 452, 457-60 (7th Cir. 1942), the court determined that transferring employees from department to department constituted a condition of employment that required collective bargaining. The NLRB held in In re U.S. Automatic Corp., 57 NLRB 124, 133-35 (1944), that even transfers of non-union employees presented proper subjects of mandatory collective bargaining. And in Inland Steel Co. v. NLRB, 170 F.2d 247, 252-53 (7th Cir. 1948), the court determined that a related bargaining subject, seniority, posed a mandatory bargaining subject because requiring negotiation provides “protection of employees against arbitrary management conduct in connection with hire, promotion, demotion, transfer and discharge ....” (emphasis added).
¶22 We agree with those early federal NLRA decisions that employee transfers and reassignments, like those at issue in this case, constitute conditions of employment. The teacher transfers in Bonner were “plainly germane to the working environment,” perhaps more plainly so than the in-plant meal prices for employees in Ford Motor Co. Ford Motor Co., 441 U.S. at 498, 99 S. Ct. at 1850. The involuntarily transferred Bonner teachers experienced changes in the subjects they were expected to teach, the number of subjects they were expected to teach, and the abilities and special needs of the students they were expected to teach. The Board recognized the importance of a teacher’s particular assignment. The Board noted the expertise that teachers acquire over years of teaching the same subject, the supplies and materials pertinent to each subject (sometimes purchased with their own funds), and the value of the continuing education unique to their particular subject or grade level.
¶23 The teacher transfers did not concern the “basic scope of the enterprise,” and thus did not lie “at the core of entrepreneurial control.” Fibreboard Corp., 379 U.S. at 223, 85 S. Ct. at 409. The transfers did not concern the subjects being taught at the school. The transfers concerned who would teach those subjects. The transfers did not concern which grades were taught at the school. The transfers concerned who would teach those grades. The scope of the school’s enterprise remained the same-educating students in grades kindergarten through eight. The conditions changed under which its employees were expected to work.
¶24 We hold that teacher transfers and reassignments constitute “other conditions of employment” as contemplated by § 39-31-305(2), MCA. This interpretation comports with the policy goals pronounced by the legislature in enacting the collective bargaining statutes. Section 39-31-101, MCA, articulates that the overarching policy behind the Collective Bargaining for Public Employees Act encourages “the practice and procedure of collective bargaining to arrive at friendly adjustment of all disputes between public employers and the employees.” This policy mirrors the U.S. Supreme Court’s decision in Fibreboard, in which it held that fostering “industrial peace” must be a primary consideration in determining whether an issue constitutes a condition of employment under the NLRA. Fibreboard Corp., 379 U.S. at 209-15, 85 S. Ct. at 402-06.
¶25 The District points out that the NLRA lacks a management rights provision that corresponds to § 39-31-303, MCA. The District argues that this omission precludes us from analogizing to federal law concerning topics deemed to be conditions of employment and therefore subject to mandatory collective bargaining. The Montana management rights provision recognizes, in pertinent part, the “prerogatives of public employers to operate and manage their affairs in such areas as, but not limited to ... hire, promote, transfer, assign, and retain employees.” Section 39-31-303(2), MCA. BEA acknowledges this distinction between Montana and federal law, but asserts nevertheless that federal court and NLRB decisions should guide our decision in light of the fact the U.S. Supreme Court has recognized an implicit and inherent right to manage existing in the NLRA.
¶26 BEA cites First National Maintenance Corp. v. NLRB, 452 U.S. 666, 101 S. Ct. 2573 (1981), as an example of the broad management rights recognized by federal courts. The Court held that management retains the right under the NLRA to manage “free from the constraints of the bargaining process to the extent essential for the running of a profitable business.” First National Maintenance, 452 U.S. at 678-79, 101 S. Ct. at 2580-81. The Court concluded that the “employer’s need for unencumbered decisionmaking” empowered the employer to discharge a number of its employees without bargaining, notwithstanding the statutory duty. First National Maintenance, 452 U.S. at 679, 101 S. Ct. 2581.
¶27 A comparison of the implicit federal management right recognized by the federal courts with the explicit management right provided in § 39-31-303(2), MCA, reveals the undefined federal right to be more expansive. The federal management right contains no defined scope or outer limit. The federal courts nevertheless have determined that employers have a duty to bargain for employee transfers under the NLRA. Rapid Roller Co., 126 F.2d at 457-60; In re U.S. Automatic Corp., 57 NLRB at 133-35; Inland Steel Co., 170 F.2d 252-53. The Montana management rights provision, on the other hand, discusses a “prerogative” rather than a “right,” and defines the particular subjects to which it applies.
¶28 The District urges us to rely on federal authority interpreting management rights clauses in collective bargaining agreements that employ language similar to the language in § 39-31-303, MCA. The District contends that those cases consistently have determined that management rights clauses permit employers to exercise expressly reserved rights without first bargaining. The District argues that Uforma/Shelby Business Forms, Inc. v. NLRB, 111 F.3d 1284, 1290 (6th Cir. 1997), and NLRB v. U.S. Postal Service, 8 F.3d 832, 838 (D.C. Cir. 1993), should guide our decision. The District’s reliance on Uforma and U.S. Postal Service falls short.
¶29 Uforma involved a waiver by the union. The union’s express waiver of its right to bargain collectively by agreeing to “clear and unmistakable” language in the collective bargaining agreement sustained the Uforma corut’s conclusion. Uforma, 111 F.3d at 1290. The Corut in U.S. Postal Service decided the case primarily on the basis of whether the union had lost its right to bargain for a subject by previously agreeing to its inclusion in the management rights clause of a collective bargaining agreement. U.S. Postal Service, 8 F.3d at 836-38. The current controversy involves no similar bargaining or express waiver of rights.
¶30 Moreover, as a matter of statutory construction, the statutory management rights provision does not absolve public employers from their duty to bargain for employee transfers. The management rights provision refers to management’s “prerogative[]” to “hire, promote, transfer, assign, and retain employees.” Section 39-31-303(2), MCA. Both BEA and the District urge that we interpret “prerogative” according to the plain dictionary meaning of the term. Both rely on substantially similar definitions of prerogative as “an exclusive or special right, power or privilege.”
¶31 The District contends that an exclusive right, power, or privilege means an unlimited right with regard to the subjects listed in the management rights provision regardless of the duty to bargain under § 39-31-305, MCA. The District argues that the provision absolves it of a duty to bargain for all subjects listed. BEA counters that the prerogative means the exclusive right to make a final decision in the matter. BEA points out that this right to decide remains intact whether the statute requires the employer to bargain. BEA asserts that a bargaining mandate only obligates the employer to meet with the employees’ representative and negotiate in good faith. The statute mandates the process. It requires management to concede nothing. We agree.
¶32 Such an interpretation avoids unnecessary conflict between the two statutes. It also serves both the practical necessity for management rights and the stated purpose of the Montana Collective Bargaining for Public Employees Act “to encourage the practice and procedure of collective bargaining to arrive at friendly adjustment of all disputes between public employers and their employees.” Section 39-31-101, MCA. In light of our determination that § 39-31-305(2), MCA, requires the District to bargain regarding teacher transfers, we hold that the District Court improperly determined that the District was not required to bargain for teacher transfers and reassignments under the Montana Collective Bargaining for Public Employees Act.
¶33 Whether the District Court properly determined that the management-rights clause of the collective bargaining agreement between the District and BEA protected the District from an unfair labor practice claim when it transferred teachers without bargaining.
¶34 The rules of contract construction guide us in determining whether the CBA permitted the District to transfer teachers without bargaining. See e.g. Kuhr v. City of Billings, 2007 MT 201, ¶ 18, 338 Mont. 402, ¶ 18, 168 P.3d 615, ¶ 18. We long have recognized, however, the importance of promoting “the practice and procedure of collective bargaining to arrive at friendly adjustment of all disputes between public employers and their employees.” Small, 200 Mont. at 502, 651 P.2d at 987 (citing § 39-31-101, MCA). This same policy animates federal labor law. This Court previously has looked to federal courts for guidance in interpreting collective bargaining agreements. Small, 200 Mont. at 502, 651 P.2d at 985. “[R]efusals to confer and negotiate had been one of the most prolific causes of industrial strife” before the advent of modern labor principles. Fibreboard Corp., 379 U.S. at 211, 85 S. Ct. at 403. This overarching policy goal also guides our consideration of the CBA.
¶35 The District argues that the CBA’s management rights provision explicitly provides the District with authority to make unilateral teacher transfers without bargaining. This provision, Article IV, § 4.1 of the CBA, provides as follows:
[BEA] recognizes the prerogatives of the [District] to operate and manage the school district and retain, without limitation all powers, rights, authority, duties and responsibilities conferred upon and vested in it by law, except as limited by explicit terms of this agreement.
The District contends that the prerogatives recognized in this provision necessarily must include the right to transfer because it is not “limited by explicit terms” elsewhere in the CBA. The District further argues that the provision will be rendered meaningless unless we interpret the provision in this way. The District contends that our failure to apply this interpretation would violate the rule of contract construction that provides that “[t]he whole of a contract is to be taken together so as to give effect to every part if reasonably practicable ....” Section 28-3-202, MCA.
¶36 Reading the CBA as a whole, however, reveals that two other clauses figure prominently. The CBA contains an integration clause, commonly known as a “zipper clause,” that provides that the parties have subsumed all agreements into the CBA. International Union v. Murata Erie North America, 980 F.2d 889, 903 (3rd Cir. 1992). A union that agrees to a zipper clause generally waives its right to bargain for otherwise mandatory subj ects of bargaining that might not be included in the agreement. International Union, 980 F.2d at 903.
¶37 The zipper clause provides:
[The CBA constitutes] the full and complete [a]greement between the [District] and the BEA. The provisions herein relating to salary, hours, and other terms and conditions of employment supersede any and all prior agreements, resolutions, practices, rules or regulations concerning salary, hours, and other terms and conditions of employment inconsistent with these provisions.
The clause, read in isolation, could be interpreted to waive BEA’s statutory right to bargain for teacher transfers and assignments as terms and conditions of employment. International Union, 980 F.2d at 903. We do not read a particular clause in isolation, however, as we must interpret the CBA as a whole. Section 28-3-202, MCA.
¶38 The CBA also contains a professional advantages clause. The clause provides that the CBA “shall not be interpreted to deprive teachers of professional advantages heretofore enjoyed, however, this does not incorporate these advantages into this contract.” The Board determined that “the ability to continue to teach in a subject or grade of a member’s choice” constitutes a professional advantage protected under that clause. We have not yet had an opportunity to interpret the scope of a professional advantages clause. Other jurisdictions have interpreted a professional advantages clause as a condition that would “increase [a teacher’s] employability’ in his field, and a condition that would “aid [a teacher] in getting and retaining subsequent employment in [the] teaching profession.” E.g. Westbrook Sch. v. Westbrook Tchrs. Ass’n, 404 A.2d 204, 212 (Me. 1979).
¶39 We must interpret the CBA in a manner that “give[s] effect to every part if reasonably practicable ....” Section 28-3-202, MCA. We noted above that transfers and reassignments constitute conditions of employment, in part, because of the expertise teachers acquire over years of teaching the same subject, and the value of the continuing education unique to their particular subject or grade level. ¶ 22. Expertise and education represent conditions that could increase employability or aid “in getting and retaining subsequent employment in the teaching profession.” Westbrook Sch., 404 A.2d at 212. The CBA’s professional advantages clause could be interpreted to protect teachers from involuntary teacher transfers and reassignments.
¶40 The zipper clause and the professional advantages clause in the CBA present us with conflicting provisions. The zipper clause has the general effect of waiving mandatory bargaining subjects not specifically contained in the CBA. In particular, it supersedes past practices concerning conditions of employment. The District had not transferred or reassigned teachers for the past ten years. ¶ 7. The zipper clause could be interpreted to waive BEA’s right to bargain for teacher transfers or reassignments. The CBA simultaneously protected teachers from unilateral changes to conditions that concerned professional advantages. The expertise and education acquired over years of teaching the same subject could be interpreted to constitute a protected professional advantage.
¶41 The CBA, read as a whole, does not reveal conclusively whether the zipper clause waived BEA’s right to bargain for teacher transfers. Likewise, the CBA does not reveal whether the professional advantages clause specifically protected teachers from unilateral transfers or reassignments. The CBA’s conflicting provisions lend themselves to more than one meaning. The CBA is ambiguous as a matter of law. See Mary J. Baker Revoc. Trust v. Cenex Harvest, 2007 MT 159, ¶¶ 20-21, 338 Mont. 41, ¶¶ 20-21, 164 P.3d 851, ¶¶ 20-21.
¶42 Section 39-31-305(1), MCA, provides that it is the duty of a public employer to bargain in good faith. The statutory duty to bargain includes a duty to bargain as to “any question arising” under the CBA. Section 39-31-305(1), MCA. Ambiguity in the zipper clause and the professional advantages clause constitutes a “question arising” under the CBA. The CBA provides no clear mechanism to resolve the correct interpretation of those competing provisions. Section 39-31-401(5), MCA, provides that it is an unfair labor practice to refuse to bargain collectively in good faith.
¶43 The District overstates the concern that to require collective bargaining for teacher transfers would defeat its expressly reserved management right under the CBA. To require collective bargaining on a subject, in fact, has no effect on the employer’s fundamental right to manage and operate. Collective bargaining does not impose on management the duty to concede to union demands. Collective bargaining merely means, under Montana law, “to meet at reasonable times and negotiate in good faith ....” Section 39-31-305(2), MCA. It obligates the employer to no particular outcome. It merely obligates the employer to participate in good faith in the actual collective bargaining process.
¶44 We note that bargaining also promotes the purpose of the Montana Collective Bargaining for Public Employees Act to “remove[] certain recognized sources of strife and unrest” and “arrive at friendly adjustment of all disputes between public employers and their employees.” Section 39-31-101, MCA. Similarly, Congress, in its statement of policy goals for the NLRA, emphasized that “[t]he denial by some employers of the right of employees to organize and the refusal by some employers to accept the procedure of collective bargaining lead to strikes and other forms of industrial strife or unrest ....” 29 U.S.C. § 151. Collective bargaining provides a process that places little actual burden on the employer, but can do so much to “defuse[] and channel[] conflict between labor and management.” First National Maintenance, 452 U.S. at 674, 101 S. Ct. at 2578. We determine that the District committed an unfair labor practice when it refused to bargain in good faith for teacher transfers and assignments, in light of the ambiguity in the CBA created by the competing provisions of the zipper clause and the professional advantages clause.
¶45 Whether the District Court properly remanded to the Hearings Officer the question of whether a long-standing practice should be treated as an express provision of a collective bargaining agreement. ¶46 BEA argues on appeal that the District Court improperly remanded to the Hearings Officer the issue of whether the District’s long-standing practice of not unilaterally transferring teachers required it to bargain for teacher transfers. We need not address this issue because we have held that both the Montana Collective Bargaining for Public Employees Act and the CBA require the District to bargain.
¶47 Reversed.
CHIEF JUSTICE GRAY, JUSTICES NELSON, COTTER, WARNER, LEAPHART and RICE concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶ 1 The Montana Petroleum Tank Release Compensation Board (“the Board”) brought suit in the First Judicial District Court against Federated Service Insurance Company (“Federated”), seeking to recover the costs of cleaning up a leak from an underground diesel tank owned and operated by Visocan Petroleum Company (“Visocan”), Federated’s insured. The District Court granted partial summary judgment to the Board, and found that the Board, as Visocan’s subrogee, had the authority to assert Visocan’s rights and claims against Federated. The District Court held that the leak was partially covered under a portion of the insurance policy, and that Federated had breached its duty to indemnify Visocan. The District Court also held that the Board could recover any other damages that arose from Federated’s breach. A jury awarded the Board $25,317.50 in administrative costs as consequential damages. Federated appeals from both the District Court’s grant of partial summary judgment, and the jury’s award of consequential damages. We affirm.
¶2 We restate the issues as follows:
¶3 I. Is the Board authorized to enter into subrogation agreements with owner/operators for the purpose of seeking reimbursement from insurers and other liable third parties?
¶4 II. Did the District Court err in concluding that diesel fuel was a pollutant as defined in the policy?
¶5 III. Did the District Court err in partially granting the Board’s motion for summary judgment, and finding that the 120-hour notice provision did not bar coverage for the leak?
¶6 IV. Did the District Court err in deciding that the Board, as a subrogee of Visocan’s breach of contract claim, could recover its administrative costs as consequential damages of Federated’s breach?
¶7 V. Was the evidence proferred by the Board at trial admissible and sufficient to support the jury’s award of consequential damages?
¶8 VI. Did the District Court err in failing to award the Board, as the prevailing party, its costs, attorneys’ fees, and pre- and post-judgment interest?
BACKGROUND
¶9 Visocan Petroleum Company owned and operated the Conoco Pop-Inn, a service station located in Helena, Montana. In the fall of 1998, Visocan installed a new 4,000 gallon diesel fuel tank as part of an upgrade of the Pop-Inn station. The new system was equipped with a leak detection monitor.
¶ 10 Roughly one week later, Visocan first noted discrepancies between the fuel levels registered by the system’s leak detection equipment and the corresponding inventory and sales records. Visocan contacted the tank’s installer, D & L Services, multiple times over the next few months to report the ongoing discrepancies. D & L visited the site to check the system several times. They concluded that there was no fuel leak, and that a calibration error was responsible for the discrepancies.
¶11 The discrepancies between the fuel levels and the inventory records persisted. On February 12, 1999, Keneco (a subsequent purchaser of D & L) performed an on-site “stick test.” The test determined that the tank had lost 500 gallons of fuel in two hours. Visocan took the tank out of service the same day. On February 25, 1999, Steve Visocan, the president of Visocan, received a letter from the DEQ demanding a response to the diesel leak. The record does not reflect who reported the leak to the DEQ.
¶12 On March 3,1999, Keneco dug up the storage tank. After entering the tank, an investigator observed a twenty-two inch crack on the south cap of the tank. The crack was the apparent source of the leak, but it was not conclusively determined what caused the crack. Visocan speculated that the damage was done by a backhoe during the tank’s installation in the fall of 1998. On March 8, 1999, Steve Visocan reported the leak to Pat McCutcheon, Federated’s local agent.
¶13 Under Montana’s Comprehensive Environmental Cleanup and Responsibility Act, §§ 75-10-705 - 75-10-729, MCA, Visocan was responsible for the payment of the clean-up costs of the spill. Pursuant to the Petroleum Storage Tank Cleanup Act, §§ 75-11-301 - 75-11-321, MCA, and the Montana Underground Storage Tank Act, §§ 75-11-501 - 75-11-526, MCA, the Montana Petroleum Release Board would reimburse Visocan for eligible corrective action costs not covered by Visocan’s insurance policy with Federated. Visocan signed a subrogation agreement with the Board, as required by Admin. R. M. 17.58.332(5). This agreement transferred all ofVisocan’s rights against third parties liable for the leak and any claims it had against its insurers over to the Board. Visocan reserved its right to seek reimbursement for costs not reimbursed by the Board.
¶14 Visocan held general and umbrella commercial liability and property insurance policies from Federated. These policies contained a standard absolute pollution-exclusion clause which disclaimed all coverage for spills resulting from pollutants. The policy defined “pollutants” to include “liquid... irritant[s] or contaminant[s].” Visocan also held a coverage extension (hereinafter Endorsement CP-F-83), which provided for up to $100,000 of coverage for “expense[s] to extract ‘pollutants’ from land or water ....” This coverage extension contained a notice provision which required Visocan to report any damage or loss to Federated within 120 hours of the occurrence of the loss.
¶15 Visocan sought reimbursement from Federated under its applicable policies, and also submitted claims to the Board for reimbursement for the corrective action costs. Federated denied Visocan’s claims for reimbursement via letter dated April 22, 1999, citing Visocan’s failure to give timely notice under the 120-hour notice requirement.
¶16 The Board accepted Visocan’s claims for reimbursement for corrective action costs, and its transfer of claims and rights against Federated and other third parties under an agreement dated April 13, 2000. The Board then proceeded to seek reimbursement from Federated for the cost of the clean-up. Federated denied all of the Board’s requests for reimbursement.
¶17 This litigation ensued, and the Board sought recovery of the corrective action costs from Federated, including administrative costs and fees. The District Court partially granted the Board’s motion for summary judgment. The court held that no coverage existed under the commercial general liability portion of the policy (hereinafter “CGL”) or under the petroleum products distributors’ coverage forms. However, the District Court did find that coverage for the leak existed under Endorsement CP-F-83. Thus, the District Court found that Federated had breached its duty to indemnify Visocan’s loss resulting from the leak.
¶18 The District Court also found that the Board, as Visocan’s subrogee, was entitled to recover all damages resulting from Federated’s breach, including administrative costs. A jury trial was then held to determine whether the Board incurred additional administrative expenses for handling the Visocan claims as a result of Federated’s breach, and which expenses it could recover as consequential damages. The jury found that the Board did incur additional administrative expenses as a result of Federated’s breach, and that it was entitled to $25,317.50 in additional damages.
¶19 Federated appeals the jury’s verdict and damage award, as well as multiple parts of the District Court’s Order on Various Motions.
DISCUSSION
¶20 I. Is the Board authorized to enter into subrogation agreements with owner/operators for the purpose of seeking reimbursement from insurers and other liable third parties?
¶21 Federated challenges the validity of Admin. R. M. 17.58.332(5) (2001), which authorizes the Board to enter into subrogation agreements with tank owners seeking reimbursement. This rule establishes the Board’s right to “subrogation claim[s] against insurance carriers whose policies cover . . . reimbursed costs.” Admin. R. M. 17.58.332(5) (2001). As a prerequisite to eligibility for reimbursement, the rule requires tank owners and operators to subrogate their rights to any claims under their insurance policies to the Board. Admin. R. M. 17.58.332(5) (2001). Federated argues that the Board exceeded its authority in making this rule, because the Legislature only authorized the Board to seek funding from a limited number of sources. The Legislature delineated these sources in § 75-ll-313(2)(a-e), MCA, and, Federated argues, intentionally did not include subrogation among them.
¶22 The District Court rejected Federated’s argument, and found that the Board did have authority to seek reimbursement of the corrective action costs from Federated. The court based its holding on two alternative grounds: first, the court found, the Board had the power to enter into subrogation agreements under the existing statutory scheme prior to the 2001 amendment of Admin. R. M. 17.58.332. The court held that §§ 75-11-313 and 318, MCA, and Admin. R. M. 17.58.332 (1999) provide the Board with a right to statutory subrogation that is independent of, and precedent to, the 2001 amendment to Admin. R. M. 17.58.332. The court concluded that since “the Board had the right to seek subrogation from Federated prior to the April 2001 amendment to ARM 17.58.332, it may continue to do so in this case,” and denied Federated’s motion for summary judgment..
¶23 The District Court did not end its discussion there, but went on to find that Visocan had made a valid contractual assignment of its rights against Federated to the Board. In an April 13, 2000, agreement, Visocan assigned to the Board all rights and claims it had against its insurers, and any rights and claims it had against third parties liable for the release. Visocan retained the right to seek reimbursement for costs not reimbursed by the Board.
¶24 We agree with the District Court that the Board has a statutory right of subrogation, and that the subrogation agreement between Visocan and the Board is valid. The underlying statutory scheme gives rise to a right of statutory subrogation, irrespective of the 2001 amendment. Admin. R. M. 17.58.332(5) (2001), which requires owner/operators to enter into a subrogation agreement with the Board, is, nonetheless, entirely consistent with the Board’s statutory right to seek reimbursement through subrogation.
¶25 The Board’s authority to seek funding through subrogation is established in the first instance through the statutory scheme laid out by the Legislature in Title 75, Chapter 11, MCA. To begin, § 75-11-313(2)(b), MCA, specifically directs the Board to deposit “money received by the board in the form of... reimbursements ... from any source” into the Fund. The term “reimbursements” encompasses (and indeed, seems to specifically contemplate) money the Board receives from insurers or other liable third parties, whether by subrogation or other agreement. Section 75-11-318, MCA, delineates the powers and duties of the Board. This section specifically authorizes the Board to “undertake legal action.” Section 75-11-318(3), MCA. These references, individually and taken as a whole, lead us to conclude that the Board possesses a statutory right to seek reimbursement through subrogation, and to enforce its rights in a court of law. Thus, prior to the 2001 amendment, the Board possessed the authority to seek reimbursement through subrogation.
¶26 In 2001, the Board amended Admin. R. M. 17.58.332 to recognize its statutory right to seek reimbursement through subrogation and to facilitate enforcement of that right by requiring a written subrogation agreement from the owner/operator:
To the extent the board may reimburse or has reimbursed owners or operators for eligible costs, the board has a subrogation claim against insurance carriers whose policies cover the reimbursed costs and against other third parties whose acts or omissions render them otherwise liable for the reimbursed costs. An owner or operator who accepts reimbursement for costs subrogates his rights to the board as against such insurance carriers and other third parties to the extent of the accepted reimbursed costs. An owner or operator, prior to receiving reimbursement of eligible costs, must agree on a form provided by the board, to subrogate its claims to the board to the extent of the accepted reimbursed costs.
Admin. R. M. 17.58.332(5) (2001).
¶27 The Board possessed clear authority to adopt this rule. The Legislature gave the Board the ability to “adopt rules ... governing submission of claims,” and to enact “other rules necessary for the administration of this part.” Section 75-ll-318(5)(a),(f), MCA. Section 2-4-305, MCA, provides that “[w]henever by ... statute a state agency has authority to adopt rules ... a rule is not valid or effective unless it is: (a) consistent and not in conflict with the statute and (b) reasonably necessary to effectuate the purpose of the statute.” Section 2-4-305(6), MCA. Admin. R. M. 17.58.332(5) (2001) meets both those requirements. The rule, which requires owner/operators to subrogate their claims against responsible parties to the Board, is consistent with the Board’s existing power of statutory subrogation. Further, as discussed in more detail below, subrogation is necessary to effectuate the purpose of the entire Act. Consequently, this rule (which facilitates and requires subrogation agreements) is reasonably necessary to effectuate the purpose of the statute. Thus, we conclude that under § 75-11-318, MCA, the Board has the power to enact an administrative rule requiring owners to subrogate their claims against insurers.
¶28 The dissent argues that the Board has overstepped its statutory authority by requiring owners and operators to sign subrogation agreements, because administrative agencies may not “engraft additional and contradictory ... [or] additional, non-contradictory requirements on the statute which were not envisioned by the legislature.” Board of Barbers, etc. v. Big Sky College, etc., 192 Mont. 159, 161, 626 P.2d 1269, 1270 (1981) (citations and internal quotation marks omitted). However, § 75-11-307, MCA, clearly states that “[s]ubject to the availability of money from the fund ... an owner or operator who is eligible under 75-11-308 and who complies with 75-11-309 and any rules adopted to implement those sections must be reimbursed by the board ....” Section 75-11-307, MCA (emphasis added). Thus, the Legislature, not the Board, made compliance with §§ 75-11-308 - 75-11-309, MCA, and the accompanying administrative rules a prerequisite to reimbursement.
¶29 Finally, Federated claims that Admin. R. M. 17.58.332(5) (2001) is invalid because it is inconsistent with the purpose of the statutory scheme. To the contrary, we conclude that subrogation serves the Legislature’s express stated purpose. Section 75-11-301, MCA, states that the Act’s purpose is to “provide adequate financial resources and effective procedures through which tank owners and operators may ■undertake and be reimbursed for corrective action and payment to third parties for damages caused by releases from petroleum storage tanks[.]” Through subrogation, the Board can replenish the Fund by seeking reimbursement from liable insurers. This allows the Board to fulfill the Act’s purpose of ensuring “adequate financial resources” are available to all eligible tank owners and operators. Therefore, we conclude that subrogation is consistent with-not contrary to-the Act’s purposes.
¶30 In sum, Title 75, Chapter 11, MCA, provides the Board with the statutory authority to seek reimbursement of corrective action expenses through subrogation. By virtue of this existing right to statutory subrogation, the Board had the authority to enact Admin. R. M. 17.58.332(5) (2001). Thus, the subrogation agreement between Visocan and the Board made pursuant to Admin. R. M. 17.58.332(5) (2001) is valid and enforceable. Consequently, we hold that the District Court did not err in denying Federated’s motion for summary judgment on this issue.
¶31 II. Did the District Court err in concluding that diesel fuel was a pollutant as defined in the policy?
¶32 On cross-appeal, the Board argues that the District Court erred in determining that diesel fuel was included in the policy’s definition of pollutant, and thus that the leak was excluded from coverage under the CGL portion of the policy. We review a district court’s grant of summary judgment de novo, using the criteria established by M. R. Civ. P. 56(c). State Farm Mut. Auto Ins. Co. v. Gibson, 2007 MT 153, ¶ 9, 337 Mont. 509, ¶ 9, 163 P.3d 387, ¶ 9. The interpretation of an insurance contract is a question of law for the court. State Farm, ¶ 9. We review a district court’s conclusions of law to determine whether they are correct. State Farm, ¶ 9.
¶33 A. Background principles of insurance contract interpretation
¶34 Several key principles guide us in interpreting insurance policies. First, in interpreting an insurance policy, we read the policy as a whole, and “if possible, reconcile its various parts to give each meaning and effect.” Farmers Alliance Mut. Ins. Co. v. Holeman, 1998 MT 155, ¶ 25, 289 Mont. 312, ¶ 25, 961 P.2d 114, ¶ 25 (citations omitted). If the parties dispute the meaning of a term, we determine whether the term is ambiguous by viewing the policy from “the viewpoint of a consumer with average intelligence but not trained in the law or insurance business.” Farmers Alliance Mut. Ins. Co., ¶ 25 (citation omitted). An ambiguity exists “when a contract taken as a whole in its wording or phraseology is reasonably subject to two different interpretations.” Jacobsen v. Farmers Union Mut. Ins. Co., 2004 MT 72, ¶ 19, 320 Mont. 375, ¶ 19, 87 P.3d 995, ¶ 19 (citation omitted).
¶35 However, “[t]he counter-balance rule to the foregoing is that if the language is clear and explicit this Court may not rewrite an insurance contract, but must enforce it as written.... This Court has held, in fact, that expectations which are contrary to a clear exclusion from coverage are not objectively reasonable.” Lee v. USAA Cas. Ins. Co., 2001 MT 59, ¶ 30, 304 Mont. 356, ¶ 30, 22 P.3d 631, ¶ 30 (citations omitted). Further, “[cjourts should not ... seize upon certain and definite covenants expressed in plain English with violent hands, and distort them so as to include a risk clearly excluded by the insurance contract.” Mecca v. Farmers Insurance Exchange, 2005 MT 260, ¶ 9, 329 Mont. 73, ¶ 9, 122 P.3d 1190, ¶ 9.
¶36 To begin, we note that the term “pollutant” appears in both Endorsement CP-F-83 and in the main CGL policy. In both places, the term is defined identically: “Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.” The Board essentially argues that we should construe the term “pollutant” to include diesel under Endorsement CP-F-83, but exclude it under the CGL policy. Logic will not permit such a result, however favorable to the Board. The contract must be read as a whole, Farmers Alliance Mut. Ins. Co., ¶ 25, and identical terms must be given the same meaning and construction throughout the policy. The definition of “pollutant” must either include diesel or exclude diesel, and must be read consistently throughout the policy.
¶37 B. Are the terms of the pollution-exclusion clause ambiguous?
¶38 As discussed above, the question of whether a term is ambiguous is viewed from the standpoint of an average consumer not trained in the law or insurance business. Farmers Alliance Mut. Ins. Co., ¶ 25. However, this Court will not read ambiguity into a contract where there is none. Mecca, ¶ 9.
¶39 The clause at issue in the instant case is known in the industry as a “standard pollution exclusion clause,” and is commonly used by insurers nationwide. We must determine whether the term “pollutant” is ambiguous, and more specifically, whether diesel fuel is included in its definition. Though many of our sister states have previously considered this exact issue, the question is one of first impression for this Court. The precedent of these other states, though not controlling, is instructive in our analysis of this issue.
¶40 1. A survey of pollution-exclusion clause jurisprudence
¶41 Federated has defended the identical clause at issue in this case in multiple other jurisdictions. Each court to consider the Federated pollution-exclusion clause has held that it is not ambiguous, and that motor fuels are clearly included in the definition of pollutant. Federated Mut. Ins. Co. v. Abston Petroleum, Inc., 967 So.2d 705, *7 (Ala. 2007); Harrison v. R.R. Morrison & Son, Inc., 862 So.2d 1065, 1072 (La. App. 2 Cir. 2003); North Georgia Petroleum v. Federated Mut. Ins. Co., 68 F. Supp. 2d 1321, 1327 (N.D. Ga. 1999); Legarra v. Federated Mut. Ins. Co., 42 Cal. Rptr. 2d 101, 106 (Cal. App. 3 Dist. 1995); Crescent Oil Co. v. Federated Mut. Ins. Co., 888 P.2d 869, 873 (Kan. App. 1995).
¶42 The same conclusion was reached by courts considering policies issued by companies other than Federated, but with identical absolute pollution-exclusion clauses. Wagner v. Erie Ins. Co., 801 A.2d 1226, 1232 (Pa. Super. 2002), aff'd, 847 A.2d 1274 (Pa. 2004); Owners Ins. Co. v. Farmer, 173 F. Supp. 2d 1330, 1332-33 (N.D. Ga. 2001); Truitt Oil & Gas Co. v. Ranger Ins. Co., 498 S.E.2d 572, 574 (Ga. App. 1998); Millers Mut. Ins. of Ill. v. Graham Oil, 668 N.E.2d 223, 228-29 (Ill. App. 2 Dist. 1996); Heyman Assoc. v. Ins. Co. of State of Pa., 653 A.2d 122, 131-33 (Conn. 1995).
¶43 A minority of courts, by contrast, have found the same pollution-exclusion clause to be ambiguous. State Auto Property & Cas. Ins. Co. v. Arkansas Dept. of Environmental Quality,_S.W.3d_(Ark. 2007) (“[T]his court continues to believe that the pollution-exclusion language is subject to different interpretations.”); Anderson Gas & Propane v. Westport Ins. Co., 140 S.W.3d 504, 508-509 (Ark. App. Div. 22004) (finding that the pollution-exclusion clause was ambiguous and reversing the grant of summary judgment); Hocker Oil v. Barker-Phillips-Jackson, 997 S.W.2d 510, 518 (Mo. App. 1 Dist. 1999).
¶44 In Hocker, the Missouri Court of Appeals applied a layman standard to determine whether the clause was ambiguous: “Missouri’s criteria for determining whether an insurance policy’s language is plain and unambiguous requires ascertainment of what the layman who acquired the policy of insurance would ordinarily have understood.” Hocker, 997 S.W.2d at 518. The court then reasoned:
Hocker is in the business of transporting, selling, and storing gasoline on a daily basis. Gasoline is not a pollutant in its eyes. Gasoline is the product it sells. Gasoline belongs in the environment in which Hocker routinely works .... [I]n that environment, gasoline is not a pollutant.
Hocker, 997 S.W.2d at 518. The court found the provision to be ambiguous, and then construed it in favor of the insured, holding that gasoline was not encompassed in the definition of “pollutant.” Hocker, 997 S.W.2d at 518.
¶45 In sum, our survey of case law concerning the standard absolute pollution-exclusion clause reveals that a clear majority of states have held that motor fuels are included in the clause’s definition of “pollutant.” Missouri is one of two states to reach a contrary result. At first glance, Missouri’s layman standard is similar to Montana’s average consumer standard. However, an important difference exists between the two: Montana’s standard is an objective one, while Missouri’s is subjective.
¶46 2. Is the term pollutant ambiguous from the viewpoint of the average consumer?
¶47 We have previously held that a policyholder’s expectations “which are contrary to a clear exclusion from coverage are not objectively reasonable.” Lee, ¶ 30. The Missouri Court of Appeals relied on the subjective expectation of the petroleum station owner to reach its conclusion that petroleum was not a pollutant. By contrast, Montana’s “average consumer” standard is an objective one. We view the term through the “objectively reasonable” perspective of the average consumer, not through the eyes of Visocan, or any other single policyholder. The policy defines “pollutants” to include “liquid ... irritant[s] or contaminant[s].” Visocan’s expectation that diesel fuel is not included in the category of “liquid... irritant[s] or contaminantes]” is contrary to the clear terms of the policy.
¶48 Considering the issue from the objective viewpoint of a consumer with average intelligence, we conclude that most consumers would consider diesel a pollutant when it leaks into the ground and contaminates soil and groundwater. As the Supreme Court recognized, even a valuable and useful product can become a pollutant when it contaminates a natural resource. United States v. Standard Oil Co., 384 U.S. 224, 226, 86 S. Ct. 1427, 1428 (1966) (rejecting the argument that oil was not refuse, and holding that it became a pollutant once it leaked into the river). Similarly, motor fuel-though commercially valuable to the gas station owner and useful to consumers-becomes a pollutant once it has leaked into the soil. Federated Mut. Ins. Co., 967 So.2d 705, at *6.
¶49 In sum, we hold that the terms of the pollution-exclusion clause are not ambiguous. Viewed from the objective perspective of the average consumer, we conclude that diesel is included in the clause’s definition of the term “pollutant.” This is evidenced by both the clear language of the policy, and by the obvious hazards diesel fuel poses to community health and safety once it has leaked into the soil. Thus, the District Court did not err in concluding that diesel fuel was a pollutant as defined in the policy.
¶50 III. Did the District Court err in partially granting the Board’s motion for summary judgment, and finding that the 120-hour notice provision did not bar coverage for the leak?
¶51 The District Court granted summary judgment in favor of the Board, finding that the leak was covered under Endorsement CP-F-83. The Endorsement required that Visocan give notice of the leak to Federated within 120 hours of the occurrence; the District Court found that Visocan satisfied this requirement. Alternately, the District Court held, even if Visocan failed to give timely notice, the notice provision itself violated public policy and could not be enforced.
¶52 We review a district court’s grant of summary judgment de novo, using the criteria established by M. R. Civ. P. 56(c). State Farm, ¶ 9. The moving party bears the burden of proving that no genuine issues of material fact exist, and as a result, that they are entitled to judgment as a matter of law. State Farm, ¶ 9. In Montana, the interpretation of an insurance contract is a question of law. State Farm, ¶ 9. We review a district court’s conclusions of law to determine whether they are correct. State Farm, ¶ 9.
¶53 The Board argues that the 120-hour notice provision found in Endorsement CP-F-83 violates public policy because it does not comply with the statutory requirements of the Property and Casualty Insurance Policy Language Simplification Act, §§ 33-15-333 - 33-15-340, MCA (“Insurance Simplification Act”). Section 33-15-337(2), MCA, provides that “[t]he policy must include a table of contents and notice section of important provisions.” Federated admits that there is no mention of the 120-hour notice provision in the policy’s table of contents, or in a special notice section of important provisions. Federated’s failure to highlight the 120-hour notice provision in a table of contents or notice section is a clear violation of § 33-15-337(2), MCA.
¶54 Federated concedes that the policy does not meet these statutory requirements, but argues that the provision should be strictly enforced nonetheless because this Court has previously upheld shorter notice periods. However, each case that Federated cites was decided well before the Insurance Simplification Act was adopted. Further, the fatal problem with the policy is its failure to conform to the requirements of the Act, not the brevity of its notice period.
¶55 A contract provision that is “contrary to an express provision of law” is unlawful. Section 28-2-701(1), MCA. Contract provisions which violate express statutes are contrary to public policy and void. Belgrade Educ. Ass’n v. Belgrade School Dist., 2004 MT 318, ¶ 17, 324 Mont. 50, ¶ 17, 102 P.3d 517, ¶ 17 (citations omitted).
¶56 Courts will not enforce an illegal contract or contract provision. MPH Co. v. Imagineering, Inc., 243 Mont. 342, 349-50, 792 P.2d 1081, 1086 (1990). By “refusing to enforce such contracts the court does not act for the benefit, or for the preservation of the alleged rights, of either party, but in the maintenance of its own dignity, the public good, and the laws of the state.” McManus v. Fulton, 85 Mont. 170, 182, 278 P. 126, 131 (1929) (citation omitted).
¶57 Federated further argues that even if the 120-hour notice provision is void under the Insurance Simplification Act, the Court has no power to enforce the Act. Section 33-15-338(2), MCA, gives the Insurance Commissioner “sole authority to enforce the provisions of 33-15-333 through 33-15-340 or to seek remedies for its violation.” This provision may bar a private right of action under the Insurance Simplification Act, but does not bar the courts of this state from performing their constitutionally designated roles in interpreting and upholding the law. Mont. Const, art. VII, § 1; Best v. Police Dept. of City of Billings, 2000 MT 97, ¶ 16, 299 Mont. 247, ¶ 16, 999 P.2d 334, ¶ 16 (“It is the province and duty of the judiciary ‘to say what the law is’....”) (citing Marbury v. Madison, 5 U.S. 137, 177 (1803)). The Act does not prevent this Court from determining that the notice provision in the policy before us violates the laws of this State, and from refusing to enforce it.
¶58 We agree with the District Court’s conclusion of law that the 120-hour notice provision is void and unenforceable as a matter of public policy, because it is contrary to statute. Because we conclude that the Endorsement’s notice provision violates public policy, it is unnecessary to consider whether Visocan’s notice was timely.
¶59 IV. Did the District Court err in deciding that the Board, as a subrogee of Visocan’s breach of contract claim, could recover its administrative costs as consequential damages of Federated’s breach?
¶60 F ederated appeals the portion of the District Court’s partial grant of summary judgment in favor of the Board which found that Visocan was entitled to “all damages resulting from Federated’s breach of contract, regardless of the fact that Federated only breached one portion of the policy.” Specifically, Federated appeals the District Court’s finding that Visocan (and thus the Board) could recover its administrative costs as consequential damages. We review a district court’s grant of summary judgment de novo. State Farm, ¶ 9. We review a district court’s conclusions of law to determine whether they are correct. State Farm, ¶ 9.
¶61 A subrogee stands in the shoes of the subrogor, and thus cannot stand in any better position than the insured. Petroleum Tank Release, ¶¶ 15, 31, 33 (citations omitted). To determine whether the Board could recover its administrative expenses, we must first ask what Visocan, the insured, was entitled to recover.
¶62 A. What damages is Visocan entitled to recover as a result of Federated’s breach?
¶63 Under Montana law, an insured is entitled to “all damages” which result from a breach of contract by the insurer. Grindheim v. Safeco Ins. Co. of America, 908 F. Supp. 794, 808 (D. Mont. 1995) (applying Montana law). An insured’s remedies for breach of duty to indemnify include both legal and equitable remedies. Mountain West v. Brewer, 2003 MT 98, ¶ 36, 315 Mont. 231, ¶ 36, 69 P.3d 652, ¶ 36 (awarding attorney’s fees to insured); Safeco Ins. Co. v. Munroe, 165 Mont. 185, 192, 527 P.2d 64, 68 (1974) (holding that insured was entitled to consequential damages).
¶64 Section 27-1-311, MCA, sets out the measure of damages for a breach of contract:
F or the breach of an obligation arising from contract, the measure of damages, except when otherwise expressly provided by this code, is the amount which will compensate the party aggrieved for all the detriment which was proximately caused thereby or in the ordinary course of things would be likely to result therefrom. Damages which are not clearly ascertainable in both their nature and origin cannot be recovered for a breach of contract.
We have observed that this section generally permits recovery for two types of damages: proximate and consequential. Martel Const., Inc. v. State, 249 Mont. 507, 511, 817 P.2d 677, 679 (1991) (citation omitted). Consequential damages are those damages “within the contemplation of the parties when they entered into the contract, and such as might naturally be expected to result from its violation.” Martel, 249 Mont. at 511, 817 P.2d at 679 (citation omitted).
¶65 B. Do the administrative costs of the corrective action Qualify as consequential damages?
¶66 Visocan is entitled to recover its administrative costs as consequential damages if the costs were contemplated by both parties at the time the contract was entered into, and if they might naturally be expected to result from Federated’s refusal to indemnify. In Safeco, we held that in the context of a similar insurance policy, the term damages was used “without limitation.” Safeco, 165 Mont. at 192, 527 P.2d at 68. We rejected the insurer’s argument that the policy did not contemplate the award of consequential damages, noting that the policy did not contain any provision explicitly excluding consequential damages. Safeco, 165 Mont. at 192, 527 P.2d at 68. Similarly, the policy at issue here does not contain any provision excluding consequential damages.
¶67 1. At the time of the contracting, did the parties contemplate the administrative costs of corrective action?
¶68 The language of the policy indicates the parties did in fact contemplate the coverage of the administrative costs of a clean-up. Endorsement CP-F-83 states:
This Additional Coverage Extension does not apply to costs to test for, monitor or assess the existence, concentration or effects of “pollutants”, [sic] But we will pay for testing which is performed in the course of extracting the “pollutants” from the land or water.
This clause shows that Federated expected to reimburse Visocan for more than the cost of just the extraction. Coverage under the policy included management and oversight costs such as testing performed over the course of the clean-up. Further, the terms of policy are worded broadly: “We will pay your expense to extract ‘pollutants’ from land or water ....” The policy does not qualify or limit the term “expense,” except to place a $100,000 ceiling on the coverage. In sum, the terms of the policy itself suggest that both parties expected that coverage would include the administrative costs of a clean-up.
¶69 2. Are the administrative costs incurred by the Board a natural consequence of Federated’s breach?
¶70 Next, we consider whether the Board’s administrative costs might naturally be expected to arise from Federated’s breach. As parties with experience in either insuring or operating stations with underground petroleum tanks, both Visocan and Federated could have expected that a clean-up effort would require some administrative oversight and coordination. Section 75-11-309, MCA, details the administrative procedures and oversight involved in a petroleum tank leak clean-up. If Federated did not assume these duties, they would have inevitably been assumed by Visocan or the Board. Thus, the administrative costs are a natural consequence of Federated’s breach.
¶71 The administrative costs are recoverable as consequential damages because they were anticipated by the parties at the time of contracting, and they might naturally be expected to result from Federated’s breach. Thus, the District Court did not err in its conclusion of law that the Board was entitled to recover its administrative costs as consequential damages.
¶72 V. Was the evidence proferred by the Board at trial admissible and sufficient to support the jury’s award of consequential damages?
¶73 In support of its claim for consequential damages, the Board offered into evidence Exhibit 2, a chart containing the average cost per clean-up claim received and cost per claim paid for the fiscal years 1999 through 2005. The Board offered this summary of its own data pursuant to M. R. Evid. 1006. Federated objected to the admission of this summary chart on the grounds that it was inadmissible hearsay, speculative, and that the proper foundation was not laid. The court overruled the objection and allowed the chart to be introduced. On appeal, Federated argues that the chart should have been excluded from evidence because it did not meet the proper foundation requirements for M. R. Evid. 1006, and that it contained inadmissible hearsay. Federated also challenges the sufficiency of the evidence.
¶74 A. Was the summary contained in Exhibit 2 admissible?
¶75 District courts have broad discretion in controlling the admission of evidence at trial. Seltzer v. Morton, 2007 MT 62, ¶ 65, 336 Mont. 225, ¶ 65, 154 P.3d 561, ¶ 65 (citations omitted). When reviewing a district court’s evidentiary ruling, we do not evaluate whether we would have made the same decision. Seltzer, ¶ 65. Rather, we review only for abuse of discretion. Seltzer, ¶ 65. A trial court abuses its discretion when it “act[s] arbitrarily without conscientious judgment or exceed[s] the bounds of reason.” Lopez v. Josephson, 2001 MT 133, ¶ 14, 305 Mont. 446, ¶ 14, 30 P.3d 326, ¶ 14. We will not reverse the district court’s ruling unless the abuse of discretion constitutes reversible error. Seltzer, ¶ 65. Reversible error occurs when a substantial right of the appellant is affected, or when the challenged evidence affected the outcome of the trial. Seltzer, ¶ 65.
¶76 M. R. Evid. 1006 provides that:
The contents of voluminous writings, recordings, or photographs which cannot conveniently be examined in court may be presented in the form of a chart, summary, or calculation. The originals, or duplicates, shall be made available for examination or copying, or both, by other parties at a reasonable time and place. The court may order that they be produced in court.
To date, we have not formally recognized any foundation requirements for M. R. Evid. 1006. Barrett v. Larsen, 256 Mont. 330, 337-38, 846 P.2d 1012, 1017 (1993), overruled in part on other grounds, Giambra v. Kelsey, 2007 MT 158, 338 Mont. 19, 162 P.3d 134, (holding that the plain language of the rule does not impose any foundational requirement to make the underlying documents available before trial).
¶77 However, the Commission on Rules of Evidence notes that M. R. Evid. 1006 is “identical” to Fed. R. Evid. 1006. M. R. Evid. 1006 advisory comm. nn. As both parties point out, Fed. R. Evid. 1006 conditions admissibility of summaries upon a showing of two foundational requirements. First, the underlying materials upon which the summary is based must be admissible into evidence. Second, the underlying materials must be made available to the opposing party for inspection. We now adopt these foundational requirements, and consider whether they were satisfied in the instant case.
¶78 1. Were the underlying documents independently admissible?
¶79 The Board argues that the underlying documents and records were independently admissible pursuant to three hearsay exceptions: the M. R. Evid. 803(6) business activity exception, the M. R. Evid. 803(8) public agency records exception, and the M. R. Evid. 803(24) hearsay “catch-all” exception. Exhibit 2 summarizes the Board’s expenditures and number of claims it received and paid from fiscal year 1999 to fiscal year 2005. This information is commonly available as a matter of public record. M. R. Evid. 803(8) provides for the admission of:
[Rjecords, reports, statements, or data compilations in any form of a public office or agency setting forth its regularly conducted and regularly recorded activities, or matters observed pursuant to duty imposed by law and as to which there was a duty to report, or factual findings resulting from an investigation made pursuant to authority granted by law.
¶80 Federated argues that because the summary contains information from “unidentified accountants,” the exhibit was based on inadmissible hearsay. However, the Board’s foundation witness testified that the data in the summary was pulled from records kept regularly by the DEQ and the state accounting system. The records of requests for reimbursements and records of expenditures were kept by the agency and its accountants as records regularly kept and matters observed pursuant to the duties imposed by §§ 75-11-301 - 75-11-321, MCA. Section 75-11-318(7), MCA, specifically requires the Board to make an annual report containing, among other things, an analysis of “trends in fund revenue and expenditure activity.” The Board, of course, is a “public office or agency” within the meaning of M. R. Evid. 803(8). Section 2-15-2108, MCA. Thus, the documents underlying the summary are admissible pursuant to M. R. Evid. 803(8) because they qualify as “records, reports, statements, or data compilations in any form of a public office or agency setting forth ... matters observed pursuant to duty imposed by law and as to which there was a duty to report...” M. R. Evid. 803(8).
¶81 Having concluded that the underlying evidence is independently admissible pursuant to M. R. Evid. 803(8), we need not consider its admissibility under either M. R. Evid. 803(6) or 803(24). We now turn to the second foundational requirement: whether the Board made the documents available to Federated.
¶82 2. Were the documents made available?
¶83 Federated argues that the Board did not make the underlying documents available; however, the record belies this claim. The Board first announced its intention to introduce summaries of data pursuant to M. R. Evid. 1006 in its June 3, 2005, Disclosure of Lay Witnesses and Exhibits. In the Disclosure, the Board specifically noted that the summaries would be drawn from the Board’s reimbursement files, the DEQ Site & Facility File, and “others as needed.” The Board also had two boxes of the underlying documents (those specifically pertaining to the Visocan claims) present in court at trial. Further, all of the underlying documents were available as a matter of public record, and could have easily been obtained by Federated before the trial.
¶84 Some of the documents underlying Exhibit 2 were present in the courtroom. Yet Federated did not use these to cross-examine the Board’s foundation witness or to challenge the summary. Further, Federated did not request that the other underlying documents be made available, or ask the District Court to order the materials to be produced in court.
¶85 In sum, the documents underlying the summary were independently admissible, and were made available to Federated both before and during trial. Thus, we conclude that Federated has failed to show that the District Court abused its discretion in admitting the summary contained in Exhibit 2.
¶86 B. Was the jury’s verdict supported by substantial, credible evidence?
¶87 Our review of a jury verdict in a civil case is necessarily very limited, out of deference to the jury’s constitutionally sanctioned decisional role. Mont. Const, art. II, § 26; Kneeland v. Luzenac America Inc., 1998 MT 136, ¶ 53, 289 Mont. 201, ¶ 53, 961 P.2d 725, ¶ 53. Our task on review “is simply to determine whether the verdict is supported by substantial credible evidence, which is defined as evidence that a reasonable mind might accept as adequate to support a conclusion.” Seltzer, ¶ 93 (citations omitted). Evidence will be considered substantial even where it is “inherently weak and conflicting” and “less than a preponderance.” Seltzer, ¶ 93. However, it must be “more than a mere scintilla” and must not be “trifling or frivolous.” Seltzer, ¶ 93. We view the evidence in the light most favorable to the prevailing party, who is entitled to any reasonable inference that can be drawn from the facts. Seltzer, ¶ 93.
¶88 Federated argues that the damage award issued by the jury was too speculative. Speculative damages “are not clearly ascertainable in both their nature and origin [and] cannot be recovered for a breach of contract.” Section 27-1-311, MCA. Cut Bank School Dist. No. 15 v. Rummel provides an instructive illustration of speculative evidence. 2002 MT 248, ¶ 9, 312 Mont. 143, ¶ 9, 58 P.3d 159, ¶ 9. There, the only evidence that the non-breaching party offered to support its claim for damages was the testimony of the contractor, who when asked to give a rough estimate of the cost to complete the project, said: “I don’t know off the top of my head ... between three and 4,000 [sic] total, maybe.” Cut Bank School Dist. No. 15, ¶ 9. We concluded that without further evidence of actual cost, “such speculation is insufficient to prove damages to a reasonable degree of certainty.” Cut Bank School Dist. No. 15, ¶ 9.
¶89 By contrast, the Board presented one witness and two exhibits to support its claim for consequential damages. The witness was a manager of the Board, and had worked for the Board for thirteen years. In his role as a manager, he oversaw Visocan’s claims for reimbursement and clean-up efforts. He testified at length and in detail about the Visocan claims and clean-up efforts specifically, and about the Board’s operation and claim review process more generally.
¶90 The Board’s exhibits consisted of a record of 190 claims arising from the Conoco Pop-Inn spill (Exhibit 1), and a summary of the average cost per claim received and cost per claim paid for the fiscal years 1999 to 2005 (Exhibit 2). Exhibit 1 was an actual record from the Visocan case, while Exhibit 2 was a summary of the Board’s cumulative claims data over the past six years. The Board’s witness used these exhibits to testify that the average cost to the Board of processing a claim in the year 1999 was $1,179. The witness then testified that the first ten claims that Visocan submitted in 1999 represented about $100,000 in clean-up expenses. Using the average claim cost of $1,179 as a benchmark, the witness multiplied $1,179 by ten, reaching a total of $11,790. The Board only sought to recover the administrative costs associated with the first $100,000 of Visocan’s 1999 claims because Endorsement CP-F-83 only provided $100,000 of coverage for the leak. The Board’s witness then used the same calculation method to estimate that it had incurred a total of $193,172 in costs for processing all 190 of the claims Visocan had submitted so far. Thus, relying on both the actual Visocan claims and the Board’s summary claim data, the Board requested $11,790 in administrative costs.
¶91 We have held that “[a] plaintiff will not be denied recovery simply because it is too difficult to ascertain the amount of his damages, as long as the amount can be proven with a reasonable degree of certainty.” Sack v. A.V. Design, Inc., 211 Mont. 147, 153, 683 P.2d 1311, 1315 (1984). The plaintiff bears the burden of providing the trier of fact with “[a] reasonable basis for computation and the best evidence obtainable under the circumstances ... which will enable the [trier of fact] to arrive at a reasonably close estimate of the loss ....” Sack, 211 Mont. at 153, 683 P.2d at 1315 (citations omitted). Here, the Board’s witness testified that a more precise calculation of costs was not possible, and that the averaging method used by the Board produced the best and most reasonable estimate that could be identified. Federated presented no evidence to challenge this testimony.
¶92 We have made it clear that “[r]ecovery of damages will not be denied, even if the mathematical precision of the figure is challenged, provided the evidence is sufficient to afford a reasonable basis for determining the specific amount awarded.” Hallenberg v. General Mills Operations, Inc., 2006 MT 191, ¶ 32, 333 Mont. 143, ¶ 32, 141 P.3d 1216, ¶ 32 (citation omitted). Notably, Federated challenges the method of calculation used by the Board, not the accuracy of the figures quoted in the exhibits. As in the Sack case, “Appellant simply claims the award is speculative, and offers no alternative method for computing damages.” Sack, 211 Mont. at 153, 683 P.2d at 1315. Every award of damages is grounded, to some degree, upon speculation. Sack, 211 Mont. at 153, 683 P.2d at 1315.
¶93 Viewing the evidence in the light most favorable to the Board, and giving the jury its due deference, we hold that there is substantial evidence to support the jury’s verdict. Though the Board’s proferred method of calculating the damages may not be the most mathematically precise, it provides a reasonable basis for computation. The Board also offered the best evidence obtainable under the circumstances to support the award of damages. If Federated disagreed with the method used to arrive at the damage award, it should have presented an alternate method of calculation.
¶94 VI. Did the District Court err in failing to award the Board, as the prevailing party, its costs, attorneys’ fees, and pre- and post-judgment interest?
¶95 A. As the prevailing party, is the Board entitled to its costs and attorneys’ fees?
¶96 On cross-appeal, the Board argues that it is entitled to costs, attorneys’ fees, and pre- and post-judgment interest as the prevailing party. However, at trial, the Board’s own witness testified that the legal fees incurred by the Board in processing Visocan’s claims were included in the administrative costs it requested as consequential damages. The Board’s witness testified the first line item in Exhibit 2 (entitled “All Expenses”) included the Board’s legal services and contracts. Upon cross-examination, the witness testified that this line item specifically included the costs and fees charged by Mr. Payne and his law firm for representing the Board in outside litigation. The witness further testified this average even included the cost of document production.
¶97 The Board submitted a request for an award of consequential damages for its administrative costs, which by its own witness’s admission, included the legal fees and costs incurred in processing the Visocan claims. Since the jury’s award of administrative costs specifically included attorneys’ fees and costs, any post-trial award of costs or fees would constitute an impermissible double recovery.
¶98 B. Is the Board entitled to pre- or post-iudgment interest?
¶99 When the amount of recovery is capable of being made certain, a prevailing plaintiff is entitled to recover prejudgment interest. Section 27-1-211, MCA. There are three prerequisites to recovery under this statute. First, an underlying monetary obligation must exist. Second, the amount of recovery must be capable of being made certain. Third, the right to recover must vest on a particular day. Albers v. Bar ZF Ranch, Inc., 229 Mont. 396, 408, 747 P.2d 1347, 1354 (1987). Prejudgment interest is inappropriate, however, when the amount of a party’s damages is uncertain or disputed. Northern Montana Hosp. v. Knight, 248 Mont. 310, 320, 811 P.2d 1276, 1282 (1991).
¶ 100 Here, the amount of damages that the Board was entitled to as a result of Federated’s breach was not conclusively determined until the date that the jury returned the verdict-April 24, 2006. This judgment was made final by the court’s order on May 16, 2006. We have consistently refused to award pre-judgment interest in cases where “the amount of damages due upon breach was not clearly ascertainable until determined by the trial court.” Northern Montana Hosp., 248 Mont. at 321, 811 P.2d at 1282 (citation omitted). Further, we have interpreted § 27-1-211, MCA, to mean that “no interest can run until a fixed amount of damages has been arrived at, either by agreement, appraisal, or judgment.” Northern Montana Hosp., 248 Mont. at 321, 811 P.2d at 1282 (citation omitted).
¶101 Because the amount of damages due upon breach was not certain until judgment was entered by the trial court, the Board is not entitled to pre-judgment interest. However, the Board is entitled by statute to post-judgment interest, at the rate of 10 percent per annum. Sections 25-9-204 - 25-9-205, MCA.
CONCLUSION
¶102 In conclusion, we hold that Title 75, Chapter 11, MCA, provides the Board with statutory authority to seek reimbursement of corrective action expenses through subrogation. Thus, the Board had the authority to enact Admin. R. M. 17.58.332(5) (2001). As Visocan’s subrogee, the Board was entitled to seek reimbursement for a portion of the clean-up cost from Federated and recover its administrative costs arising from Federated’s breach. We affirm the District Court’s finding that diesel fuel was included in the policy’s definition of pollutant, and that Endorsement CP-F-83 provides $100,000 of coverage for the leak.
¶103 We also affirm the District Court’s partial grant of summary judgment in favor of the Board, and hold that the Endorsement’s 120-hour notice provision is void and unenforceable as a matter of law. The notice provision is contrary to the express requirements for insurance policies that the Legislature adopted in the Insurance Simplification Act, §§ 33-15-333 - 33-15-340, MCA. Thus, Federated may not use the notice provision to deny Visocan coverage for the leak.
¶104 We conclude that the evidence submitted by the Board in support of its claims for consequential damages was admissible pursuant to M. R. Evid. 1006, and that it was sufficient to support the jury’s award of consequential damages to the Board. We hold that the administrative costs that the Board recovered as consequential damages included its costs and attorneys’ fees, and thus it may not seek to recover these costs and fees separately. Finally, we conclude that the Board is entitled to post-judgment interest, but not to prejudgment interest, because the amount of damages was not sufficiently certain until the jury reached its verdict.
JUSTICES COTTER, NELSON and MORRIS.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant Public Service Commissioner Brad Molnar (Molnar) appeals from the order of the First Judicial District Court, Lewis and Clark County, dismissing his complaint for lack of jurisdiction. We affirm.
¶2 We address the following issue on appeal:
¶3 Did the District Court err in dismissing the complaint for lack of jurisdiction as untimely filed?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 On May 24, 2006, Molnar filed a complaint alleging that the Montana Public Service Commission (PSC) violated federal and state law by its May 25, 1999, order entered in Docket No. D99.4.82 (1999 Order) granting exempt wholesale generator, or EWG, status to Pennsylvania Power and Light of Montana (PPLM). Molnar’s complaint alleged that the PSC was without authority to grant EWG status and requested the District Court to set aside the 1999 Order. However, the District Court determined that because both §§ 69-3-402(1) and 2-4-702(2)(a), MCA, required a petition for judicial review of an agency’s decision to be filed within thirty days of the decision, it lacked jurisdiction to review Molnar’s complaint. Accordingly, on September 6, 2006, the court granted the motion to dismiss the complaint filed by Appellees PSC and PPLM, pursuant to M. R. Civ. P. 12(b)(6). Molnar appeals.
STANDARD OF REVIEW
¶5 We review de novo a district corut’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. Amotion 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. A district court’s conclusions of law are reviewed to determine if interpretation of the law was correct. Plouffe, ¶ 8.
DISCUSSION
Did the District Court err in dismissing the complaint for lack of jurisdiction as untimely filed?
¶6 Molnar argues that the District Court erred in dismissing his complaint because the thirty-day statutes of limitation either did not apply or were tolled. PSC and PPLM reply that the District Court correctly applied the statutory thirty-day time limitation on appeals from agency decisions and that this Court need not reach the merits of Molnar’s claim.
¶7 We have held that only the Legislature may validly provide for judicial review of agency decisions. Nye v. Dept. of Livestock, 196 Mont. 222, 226, 639 P.2d 498, 500 (1982). As such, a court’s authority to review administrative rulings is constrained by statute. In re McGurran, 1999 MT 192, ¶ 12, 295 Mont. 357, ¶ 12, 983 P.2d 968, ¶ 12. This includes the applicable statutes of limitation governing the time for review. McGurran, ¶ 12. Accordingly, we have determined that “filing deadlines for petitions for judicial review are jurisdictional in nature, and the failure to seek judicial review of an administrative ruling within the time prescribed by statute makes such an ‘appeal’ ineffective for any purpose.” McGurran, ¶ 12. We faced this same issue involving the same agency in MCI Telecommunications Corp. v. PSC and explained that:
The district court’s jurisdiction is controlled by the period of time prescribed by the legislature and is limited to the time provided by the applicable statute. The right to an appeal of an administrative agency’s ruling is created by statute and is limited by the provisions of the statute as to the time within which the right must be asserted.
260 Mont. 175, 178, 858 P.2d 364, 366 (1993). See also Hilands Golf Club v. Ashmore, 2002 MT 8, ¶ 18, 308 Mont. 111, ¶ 18, 39 P.3d 697, ¶ 18 (“a court’s jurisdiction to review administrative decisions is statutorily created and limited.”).
¶8 Here, two statutes governing judicial review of agency decisions may apply. First, the Legislature provided that PSC decisions are reviewable pursuant to § 69-3-402(1), MCA, which states:
Any party in interest being dissatisfied with an order of the commission fixing any rate, fare, charge, classification, or joint rate or any order fixing any regulation, practice, or service may, within 30 days, commence an action in the district court ... to vacate and set aside any such order ....
Second, more generally, the Montana Administrative Procedure Act provides that “proceedings for review must be instituted by filing a petition in district court within 30 days after service of the final written decision of the agency....” Section 2-4-702(2)(a), MCA. Review under § 2-4-702, MCA, is reserved for “contested cases.” See Nye, 196 Mont. at 226, 639 P.2d at 500-01 (stating that “[a] person who has exhausted all administrative remedies available within the agency and who is aggrieved by a final decision in a contested case is entitled to judicial review” under § 2-4-702, MCA). However, because application of either § 2-4-702 or § 69-3-402(1), MCA, containing identical thirty-day limitation periods, yields the same result under the facts alleged, we need not analyze whether the 1999 Order constituted a “contested case” to decide this matter.
¶9 The time for seeking judicial review of the PSC’s 1999 Order ran for thirty days following issuance of the order in May 1999. The complaint was filed in May of2006, nearly seven years after the period for judicial review ended. Because the thirty-day time limit to seek review of agency decisions had expired when the complaint was filed, the District Court was without jurisdiction under either statute to entertain the request for judicial review of the 1999 Order. Of course, the District Court possessed general subject matter jurisdiction to review the agency decision, but did not have authority “jurisdictional in nature,” McGurran, ¶ 12, from the Legislature to entertain a petition for review filed beyond the time limit provided in the governing statutes.
¶10 However, Molnar argues that the statutes of limitation were either inapplicable or were tolled, raising five arguments: (1) the public hearing conducted prior to issuance of the 1999 Order was not properly noticed, thereby resulting in an illegal action by the PSC which may be reviewed without any time restraints; (2) the statutes governing the PSC provide “absolutely nothing of precision” which would authorize the action it took and thus, the doctrine of expressio unium est exclusio alterius applies and leaves the PSC with “no jurisdiction to grant exempt wholesale generator status” to PPLM; (3) the PSC has a “continuing relationship” with Montana citizens, making the 1999 Order voidable at any time; (4) the PSC and PPLM concealed crucial facts from the public, thereby breaching its fiduciary duty and tolling the thirty-day time periods until the facts were discovered; and (5) the doctrine of equitable tolling applies because of the lack of proper notice and the lack of the PSC’s “jurisdiction.”
¶11 First, even assuming that the subject time period may be tolled, arguments (3), (4), and (5) are raised for the first time on appeal. We have repeatedly held that this Court considers issues presented for the first time to be untimely and will not consider them. Point Serv. Corp. v. Myers, 2005 MT 322, ¶ 31, 329 Mont. 502, ¶ 31, 125 P.3d 1107, ¶ 31 (relying on Day v. Payne, 280 Mont. 273, 276, 929 P.2d 864, 866 (1996)). This includes new arguments and changes in legal theory. Day, 280 Mont. at 276, 929 P.2d at 866. The rationale for this rule is that we refuse to fault a trial court “ ‘for failing to rule correctly on an issue it was never given the opportunity to consider.’ ” Day, 280 Mont. at 276, 929 P.2d at 866 (quoting 5 Am. Jur. 2d. Appellate Review, § 690, pp. 360-61 (1995)). Consequently, we refuse to review these new arguments on appeal.
¶12 Molnar’s remaining two arguments are framed as jurisdictional and are intertwined. As mentioned, he argues that because the public hearing for the 1999 Order was not properly noticed, and because the PSC’s governing statutes do not mention EWG status, the thirty-day time limit does not apply because the PSC did not have “jurisdiction” to enter the order, and jurisdictional claims can be raised at any time. Essentially, Molnar’s claims are that the PSC acted outside of its statutory authority, both in procedure and in substance. However, Molnar does not cite any legal authority for the proposition that where an agency acts outside of its statutory authority, petitions for judicial review challenging that action need not comply with statutes governing the timing of those petitions. Molnar would have this Court grant him a limitless time period in which to file a petition for judicial review simply because he has pled his claim as one challenging the agency’s jurisdiction. There is no support for such a conclusion and the argument fails.
¶13 We conclude that the thirty-day statute of limitations was neither tolled nor inapplicable. Consequently, the District Court properly dismissed Molnar’s complaint.
¶14 Affirmed.
JUSTICES NELSON, LEAPHART, COTTER and MORRIS concur.
|
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 David Turk (“David”) brought suit against his sister, Joann Finn (“Joann”), and his brother, Richard Turk (“Dick”), claiming ownership and seeking the return of a 1975 U-Haul truck and tools contained within the truck. Joann and Dick denied that David had an ownership interest in either the truck or the tools. The matter proceeded to trial, where a jury found that David was the rightful owner of the truck and any tools contained within. Joann and Dick now appeal. We affirm.
¶2 We restate the issues as follows:
¶3 I. Did the District Court abuse its discretion by using a special verdict form that treated the truck and tools as a whole?
¶4 II. Did the District Court err by denying Joann and Dick’s motion for judgment as a matter of law concerning Joann Finn?
¶5 III. Did the District Court err by denying Joann and Dick’s motion for judgment as a matter of law regarding the statute of limitations?
BACKGROUND
¶6 The truck and tools in question originally belonged to Augustine Turk (“Gus”). In his will, Gus divided his estate equally between his and his late -wife’s surviving siblings. The estate’s assets included a great deal of equipment and tools, including the property at stake in the instant case. The Turk siblings elected to take their share of the estate in this equipment. Dick served as one of the estate’s personal representatives and kept the titles to the estate equipment and vehicles in a filing cabinet in his home. Though the estate has been closed for more than eight years, the heirs gave conflicting testimony as to how the equipment was to be distributed amongst the Turks, and whether each received his or her fair share.
¶7 Most of this equipment was stored on Joann’s property in Townsend. Several years after the final accounting, David removed the truck (in which some of the tools were stored) from Joann’s property without notifying her or Dick. When Joann noticed the truck was missing, she reported it stolen to the police. The police report named David as a suspect.
¶8 The sheriff repossessed the truck and returned it to Joann. David’s attorney sent a demand letter to Joann and Dick requesting return of the truck and the tools. They contested David’s ownership, and this litigation ensued.
¶9 At trial, David testified that his brother Bill (now deceased) gave him the U-Haul truck. David introduced the truck’s title into evidence. The title listed Augustine Turk as the vehicle’s owner, and was signed over to David Turk (the purchaser) by both Charles Morris and Richard Turk (the sellers). In response, Dick testified that the title from the truck was an open title. Dick denied that the truck was given as a gift to David and accused David of stealing the title.
¶10 At the close of David’s case, Joann and Dick made two motions for judgment as a matter of law. First, they argued, David had failed to state a prima facie case against Joann, and thus she should be dismissed from the case. Second, they claimed the statute of limitations had run as to any possible estate or contract claims that David might bring against them. The District Court denied both motions and held that no issues of contract law or estate law were at stake. The court instructed counsel not to argue any theories of estate or contract law and to limit their arguments to the issue of whether or not David had received the property as a gift.
¶11 The court revised the special verdict form it had prepared and withdrew the following jury instruction, which had been delivered at the beginning of the trial: “If you find that David Turk was given a proposed distribution of the assets of the Estate of Augustine Turk and never objected to that distribution within 30 days of its receipt, he has waived his right to object.” David objected to the court’s decision to strike the estate law issue, but Joann and Dick did not. Appellants also voluntarily withdrew their remaining proposed jury instructions which dealt with estate and contract law issues pertaining to the ownership of the tools.
¶12 The jury found that David was the rightful owner of the truck and the accompanying tools. The court ordered J oann and Dick to trun over the truck to David; however, they did not do so until several months later, after David filed a motion for contempt.
DISCUSSION
¶13 I. Did the District Court abuse its discretion by using a special verdict form that treated the truck and tools as a whole?
¶14 After denying both of Joann and Dick’s motions for judgment as a matter of law, the court revised the special verdict form and withdrew a previously given jury instruction pertaining to an issue of estate law. The court explained that the new verdict form and jury instructions “basically limit[] the case now to whether or not there was a gift to the plaintiff!.]” The revised verdict form read: “Does David Turk rightfully own the 1975 Ford U-Haul Truck, Title #429002 with the tools inside of it?” In response to this interrogatory, the jury was instructed to “[w]rite in Tes’ or ‘No.’”
¶15 Joann and Dick sirgue that the court erred by revising the verdict form and jury instructions, and claim the court improperly denied them the opportunity to argue their theories of ownership based on estate and contract law. They further argue that the revised verdict form improperly combines distinct questions of ownership, treating the tools and the truck as a whole. However, they have waived the right to argue each of these issues.
¶16 The failure to object to a verdict form and/or jury instructions at trial results in a waiver of the right to challenge them on appeal. Greytak v. RegO Co., 257 Mont. 147, 152, 848 P.2d 483, 486 (1993). Objections to jury instructions or special verdict forms must be specific, and must state with particularity the grounds upon which they are made. M. R. Civ. P. 51; Greytak, 257 Mont. at 152, 848 P.2d at 486. We have cautioned that “[t]he instruction which is given without objection becomes the law of the case.” Kneeland v. Luzenac America, Inc., 1998 MT 136, ¶ 43, 289 Mont. 201, ¶ 43, 961 P.2d 725, ¶ 43 (citation omitted).
¶17 The record clearly demonstrates that Joann and Dick have waived their right to challenge both the verdict form and jury instructions on the basis that either omits issues of estate or contract law. When the court explained its decision to revise the verdict form and the jury instructions, Joann and Dick agreed with the court’s decision to restrict the jury from considering any estate law issues. Joann and Dick then withdrew their proposed jury instructions concerning estate and contract law and stated they had no additional objections to the remaining jury instructions, nor any new jury instructions to offer. These actions prevent Joann and Dick from challenging the court’s decision to preclude the jury from considering their contract and estate law theories.
¶18 Joann and Dick did object to the revised verdict form, but only on a very narrow ground: the jury should consider the ownership of the truck and the tools separately, they argued, not as a whole. However, this argument too has been waived, for the same reasons discussed above. The only theory upon which Joann and Dick challenged David’s ownership of the tools was based in estate law: they concede that David, as an heir of Gus’s estate, may have owned 1/6 of the tools, but argue that after distribution of the estate, he did not have a complete ownership interest in the tools. By contrast, David claims a 100 percent ownership interest in the U-Haul truck, stating it was a gift from Bill Turk (now deceased). Thus, Joann and Dick reason, the jury should be asked to make distinct findings as to who owns the tools and who owns the truck.
¶19 This theory of the case was embodied in the court’s initial instruction to the jury (reproduced in ¶ 12 above). However, Joann and Dick failed to object when the court later withdrew that instruction and precluded the jury from further analyzing ownership of the tools under estate law. Thus, Joann and Dick had no farther legal basis for differentiating between the tools and the truck. At that point, the sole issue became whether the truck and tools were stolen or were gifted.
¶20 Once Joann and Dick acquiesced in the District Court’s ruling to preclude consideration of estate law issues, and withdrew all proposed jury instructions pertaining to estate law, they were no longer in a position to argue that, under estate law, David did not have a complete ownership interest in the tools. They effectively waived any right to challenge the verdict form for failing to differentiate between ownership of the truck and the tools under estate law.
¶21 II. Did the District Court err by denying Joann and Dick’s motion for judgment as a matter of law concerning Joann Finn?
¶22 Joann and Dick moved the District Court for judgment as a matter of law, arguing that David failed to state a prima facie case against Joann Finn. On appeal, Joann and Dick argue that the District Court erred by refusing to dismiss Joann from the case, and denying their motion for judgment as a matter of law.
¶23 When reviewing an order denying a motion for judgment as a matter of law, we employ the same criteria used by the district court in the first instance. Marie Deonier v. Paul Revere Life Ins. Co., 2004 MT 297, ¶ 18, 323 Mont. 387, ¶ 18, 101 P.3d 742, ¶ 18. We have defined the standard for granting judgment as a matter of law as follows:
Judgment as a matter of law is properly granted only when there is a complete absence of any evidence which would justify submitting an issue to a jury and all such evidence and any legitimate inferences that might be drawn from that evidence must be considered in the light most favorable to the party opposing the motion.
Marie Deonier, ¶ 18. Joann and Dick claim Joann had no “dominion [or] control” over the property; however, both the evidence in the record and Joann’s own testimony suggest otherwise.
¶24 The single issue at trial was whether, as a result of a gift from Bill Turk, David owned the U-Haul truck. Joann had possession of the truck and the ignition key both before and during the trial. When David removed the truck from her property, she-not Dick-reported it to the police as stolen and filed trespassing charges against David. In the police report, Joann is listed as the only complainant, and the offense is categorized as “vehicle theft.” The report also contained a voluntary statement made by Joann, describing the truck and its contents. In her statement, Joann said “[t]his truck was removed from our property without pemission [sic] or knowledge.” The police report was entered into evidence during the plaintiffs case-in-chief, though it was a defense exhibit. Thus, the District Court could have properly considered this evidence in ruling on the motion. After the truck was recovered, the sheriff returned it to Joann. Through his attorney, David sent a demand letter (Plaintiffs Exhibit E) addressed to both Dick and Joann, requesting the return of the truck. Joann refused to return the truck to David.
¶25 Judgment as a matter of law is appropriate only where there is a complete absence of evidence. Here, there is not a complete absence of evidence-both Joann’s possession of the truck, and the police report she filed reporting the truck as stolen justified submitting the issue of ownership to the jury. Joann attempted to exercise ownership over the truck by reporting it stolen, and preventing David from taking control of the truck. Thus, the District Court did not err in refusing to dismiss her from the case.
¶26 III. Did the District Court err by denying Joann and Dick’s motion for judgment as a matter of law concerning the statute of limitations?
¶27 Joann and Dick argue that the District Court erred by denying their motion for judgment as a matter of law, in which they argued David failed to bring his suit within the statute of limitations set forth under §§ 27-2-202(2), 27-2-207, 27-2-231, 72-3-802, and 72-3-1011, MCA. Again, we conclude that Joann and Dick have waived this argument.
¶28 We have held time and again that the statute of limitations is an affirmative defense which must be raised in a party’s pleadings. M. R. Civ. P. 8(c); Estabrook v. Baden, 284 Mont. 419, 421, 943 P.2d 1334, 1335-36 (1997). “The law is clear that if the defense is not plead affirmatively, it is waived.” Taylor v. Dept. of Fish, Wildlife, & Parks, 205 Mont. 85, 96, 666 P.2d 1228, 1233 (1983) (citations omitted). In their answer to David’s complaint, Joann and Dick did not argue that the statute of limitations had expired. Thus, they have waived their right to argue the issue now on appeal.
CONCLUSION
¶29 In sum, all but one of the issues Joann and Dick raise are not properly before us for consideration. Joann and Dick failed to raise the statute of limitations as an affirmative defense in their answer to David’s complaint, and thus have waived the right to argue it now on appeal. Similarly, Joann and Dick expressed their approval of the court’s decision to preclude the jury from considering any estate law issues, and voluntarily withdrew their proposed jury instructions dealing with the same. Thus, they waived the right to challenge the verdict form on appeal, on the basis of an estate law theory. We conclude that the District Court did not err in refusing to dismiss Joann Finn from the case, because the record reflects ample evidence that she interfered with David Turk’s possession of the truck and tools. Accordingly, we affirm.
JUSTICE WARNER, NELSON and MORRIS concur.
|
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant Tony R. Notti appeals from the decision of the District Court for the Fourth Judicial District, Missoula County, denying his petition for postconviction relief. We affirm.
¶2 We restate the issues on appeal as follows:
1. Did defense counsel render ineffective assistance of counsel by failing to object to testimony of a crime lab technician regarding DNA evidence?
2. Did defense counsel render ineffective assistance of counsel by failing to object to the prior consistent hearsay testimony of four state witnesses?
3. Did defense counsel render ineffective assistance of counsel by his conduct in voir dire?
4. Did the District Court err in failing to hold an evidentiary hearing on the prior consistent hearsay statements of four state witnesses?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 On September 5, 2000, the State charged Notti by information with one felony count of sexual intercourse without consent, in violation of § 45-5-503, MCA, and one misdemeanor count of theft, in violation of § 45-6-301, MCA. These two charges arose from events of the night of May 15-16, 2000, in which Notti engaged in sexual intercourse without consent with his disabled older brother, Michael Notti.
¶4 Notti pleaded not guilty to both counts on September 11, 2000, and a two-day jury trial was conducted, beginning February 7, 2001. The jury found Notti guilty on the count of sexual intercourse without consent and not guilty on the count of theft. Nik Geranios, an attorney with the public defenders’ office, represented Notti at trial. On March 27, 2001, Notti requested a change of counsel on the ground of inadequate assistance. The District Court allowed Geranios to withdraw from representation on the basis of a breakdown in the attorney-client relationship and a second public defender was appointed to represent Notti. The District Court subsequently denied Notti’s motion for a new trial on January 17, 2002, and thereafter sentenced Notti to fifty years in the Montana State Prison, with twenty years suspended.
¶5 Notti filed an appeal with this Court on the ground of ineffective assistance of counsel due to Geranios’ alleged failure to file pretrial motions to prevent witnesses from repeating prior consistent statements by Notti’s brother Michael and failure to object to what Notti claimed was hearsay testimony by these witnesses at trial. This Court declined to rule on Notti’s ineffective assistance of counsel claim, concluding that Notti’s claims could not be reviewed on appeal and were better-suited for postconviction proceedings. State v. Notti, 2003 MT 296, ¶ 9, 318 Mont. 146, ¶ 9, 79 P.3d 289, ¶ 9 (Notti I).
¶6 Notti then filed a petition for postconviction relief, raising several claims of ineffective assistance of counsel. These included failure to object to allegedly inadmissible prior consistent hearsay statements at trial, failure to object to alleged hearsay testimony of a Montana Crime Lab technician regarding DNA evidence, and ineffective assistance during voir dire. A third public defender represented Notti in this proceeding. On September 6, 2005, the District Court issued an order denying Notti’s petition in part, and reserving two issues for an evidentiary hearing: (1) the crime lab technician’s alleged hearsay testimony regarding DNA evidence, and (2) defense counsel’s actions during voir dire. The District Court declined to reserve the issue of alleged prior consistent hearsay testimony of four witnesses for the evidentiary hearing, and instead, found that the statements were admissible under M. R. Evid. 803(2) (excited utterances); harmless error; M. R. Evid. 803(4) (statements for purposes of medical treatment or diagnosis); and in regard to one witness, that the witness did not actually repeat any prior consistent statements. The District Court held an evidentiary hearing on the remaining two issues, and thereafter entered its Findings of Fact, Conclusions of Law, and Order denying Notti’s remaining ineffective assistance claims and dismissing his petition. This appeal followed.
STANDARD OF REVIEW
¶7 This Court reviews a district court’s denial of a postconviction relief petition to determine whether the district court’s findings of fact are clearly erroneous and whether its conclusions of law are correct. Hartinger v. State, 2007 MT 141, ¶ 19, 337 Mont. 432, ¶ 19, 162 P.3d 95, ¶ 19. Claims of ineffective assistance of counsel are mixed questions of law and fact for which our review is de novo. State v. Morgan, 2003 MT 193, ¶ 7, 316 Mont. 509, ¶ 7, 74 P.3d 1047, ¶ 7. Discretionary rulings in postconviction relief proceedings, including rulings related to whether to hold an evidentiary hearing, are reviewed for an abuse of discretion. Morgan, ¶ 7.
DISCUSSION
¶8 On appeal, Notti contends that Geranios failed to render effective assistance of counsel in three ways. Notti claims Geranios: (1) failed to object to alleged hearsay testimony of a crime lab technician regarding DNA evidence; (2) failed to object to prior consistent hearsay testimony of four state witnesses; and (3) failed to challenge or further question jurors who presented a strong possibility of bias against Notti during voir dire.
¶9 When reviewing ineffective assistance of counsel claims, this Court applies the two-part test set out by the Supreme Court in Strickland v. Washington, 466 U.S. 668, 104 S. Ct. 2052 (1984). Morgan, ¶ 9. Under Strickland, to prevail on an ineffective assistance of counsel claim, the defendant must show: (1) that counsel’s performance was deficient, and (2) that counsel’s performance was prejudicial to the defendant. Strickland, 466 U.S. at 687, 104 S. Ct. at 2064; Morgan, ¶ 9.
¶10 The primary question under the first prong of Strickland is “whether counsel acted within the range of competence demanded of attorneys in criminal cases.” State v. Niederklopfer, 2000 MT 187, ¶ 19, 300 Mont. 397, ¶ 19, 6 P.3d 448, ¶ 19. Counsel’s performance is strongly presumed to be within the wide range of reasonable professional assistance. Morgan, ¶ 10. Generally, defense counsel’s “trial tactics and strategic decisions cannot be the basis upon which to find ineffective assistance of counsel.” Niederklopfer, ¶ 19.
¶11 To prevail under the second prong of Strickland, a defendant must demonstrate that “there is a reasonable probability that, but for counsel’s unprofessional errors, the result of the proceeding would have been different. A reasonable probability is a probability sufficient to undermine confidence in the outcome.” Strickland, 466 U.S. at 694, 104 S. Ct. at 2068; see also Dawson v. State, 2000 MT 219, ¶ 20, 301 Mont. 135, ¶ 20, 10 P.3d 49, ¶ 20.
¶12 A petitioner seeking to reverse a district court’s denial of a petition for postconviction relief for ineffective assistance of counsel bears a heavy burden. Morgan, ¶ 9. Furthermore, a petitioner must satisfy both prongs of the Strickland test. Adams v. State, 2007 MT 35, ¶ 22, 336 Mont. 63, ¶ 22, 153 P.3d 601, ¶ 22. If a petitioner makes an insufficient showing as to one prong of the test, then there is no need for the Court to address the other prong. Adams, ¶ 22.
¶13 Issue One. Did defense counsel render ineffective assistance of counsel by failing to object to testimony of a crime lab technician regarding DNA evidence?
¶14 Notti argues that the District Court erred by failing to conclude that defense counsel’s actions, with respect to DNA evidence, fell below objective standards of reasonableness and constituted ineffective assistance of counsel. The District Court determined that Geranios’ failure to object to the testimony of state crime lab technician Michelle Griffin was a strategic decision and not outside the range of competence demanded of attorneys in criminal cases.
¶ 15 Montana Crime Lab technician Lori Hutchinson authored a report detailing DNA testing she had performed on several items taken from Michael’s apartment, including a washcloth that Hutchinson determined had seminal fluid matching Notti’s DNA profile. Due to her attendance at a training session, Hutchinson did not testify at trial. Instead, the State called Michelle Griffin, Hutchinson’s co-worker at the crime lab, to testify regarding Hutchinson’s DNA report and analysis. Griffin did not perform any of the tests herself. Griffin testified as to the findings contained in Hutchinson’s report, including the presence of DNA matching that of Notti’s on items seized at the crime scene. At no point did Geranios object to Griffin’s testimony. Geranios then proceeded to cross-examine Griffin on the results of the DNA evidence tests.
¶16 Notti cites four grounds on which the District Court should have found the testimony inadmissible: (1) the DNA evidence admitted at trial was hearsay; (2) the DNA report was testimonial and Sixth Amendment protections applied; (3) Griffin was improperly declared to be an expert and should not have relied on Hutchinson’s report; and (4) the State laid an inadequate foundation for the introduction of Hutchinson’s file. Notti claims that counsel’s failure to object to these deficiencies constituted ineffective assistance. The State argues that all of Notti’s four grounds fail because Geranios made a reasonable strategic decision not to object and that Notti cannot prove prejudice.
¶17 We shall first consider whether Geranios’ conduct constituted a reasonable strategic decision. As a general rule, a defendant seeking review for ineffective assistance of counsel must “overcome the presumption that under the circumstances the action which he challenges might be considered sound trial strategy.” Niederklopfer, ¶ 19. Generally, “Counsel’s trial tactics and strategic decisions cannot be the basis upon which to find ineffective assistance of counsel.” Niederklopfer, ¶ 19.
¶18 At the evidentiary hearing of November 14, 2005, Geranios discussed in detail his reasons for not filing any pretrial motions with respect to the DNA evidence or objecting to Griffin’s testimony at trial. He testified that he had spoken with both Hutchinson and Griffin prior to trial and discussed the DNA report and results with them. When asked whether he had any concern that Griffin and not Hutchinson would testify, Geranios replied:
Well, we weren’t-we could have objected to her testimony, which would have resulted either in a continuance of the trial, which was not what Mr. Notti was wanting. He wanted to get this thing moving and have his trial. He was not wanting any extensive delays. So that was one issue. But the other issue was that the testimony from the crime lab dove-tailed with the Defendant’s version of events.
Geranios reiterated multiple times that he believed that the evidence comported with the defense’s theory of the case and buttressed Notti’s explanation of the events which occurred. Geranios stated: “Bottom line was that the evidence from the crime lab ... fit in with the theory of defense in this case and that testimony and evidence ... was explained and actually ... didn’t hurt us, from our perspective.”
¶19 In sum, Geranios offered two primary grounds for not objecting to the testimony or evidence offered at trial on the DNA results. The first was that neither he nor Notti wanted to delay the trial any further. Secondly, the fact that Griffin testified in place of Hutchinson was not a concern for Gerardos as he believed the evidence and testimony supported rather than harmed his client because it comported with the defense’s theory of the case.
¶20 Notti disputes the claim that he did not desire a trial continuance. At the evidentiary hearing, when asked if it mattered to him whether the trial was delayed or not, Notti replied “no.” He later stated that “he would have wanted the right person in there.” Even assuming that Notti and Geranios disagreed on whether the trial should be delayed so that Hutchinson could testify instead of Griffin, counsel nevertheless made a decision that the DNA evidence and testimony offered by Griffin comported with Notti’s version of the events and would help the defense. Geranios explained that he did not believe his cross-examination of Hutchinson would be significantly different from his cross-examination of Griffin, and that if he had any concerns about Hutchinson’s background or DNA analysis, he would have objected to the DNA evidence. Geranios ultimately concluded that he could not have obtained any additional favorable information from Hutchinson that he did not get from Griffin.
¶21 We agree with the District Court’s conclusion that Geranios’ failure to object to Griffin’s testimony at trial was a strategic decision and did not constitute conduct outside the range of competence demanded of attorneys in criminal cases. Geranios provided clear, rational grounds as to why he chose not to object to the DNA evidence or testimony at trial. As such, we need not address any of Notti’s arguments about the underlying inadmissibility of the evidence. In addition, because Notti has failed to satisfy the first prong of the Strickland test, we need not address whether the alleged deficiency prejudiced Notti. Adams, ¶ 22. We hold that Notti’s trial counsel did not render ineffective assistance of counsel.
¶22 Issue Two. Did defense counsel render ineffective assistance of counsel by failing to object to the prior consistent hearsay testimony of four state witnesses?
¶23 Notti argues that defense counsel rendered ineffective assistance by failing to object to inadmissible prior consistent hearsay statements of four state witnesses. The witnesses were: (1) Deb Bruce-the 911 dispatcher who took Michael Notti’s call on the morning of May 16, 2000; (2) Kenneth Guy-the Missoula Police Department officer who responded to Michael’s initial call; (3) Dr. Joseph Weydt-the emergency room physician at Saint Patrick’s Hospital who examined and treated Michael on May 16; and (4) Detective Rich Ochsner-the Missoula Police Department detective who conducted the investigation and interviewed Michael. Notti alleges that these four witnesses repeated prior consistent statements of Notti’s brother Michael and that these statements constituted inadmissible hearsay.
¶24 Under the Montana Rules of Evidence, hearsay is defined as “a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted.” M. R. Evid. 801(c). Under M. R. Evid. 802, “Hearsay is not admissible except as otherwise provided by statute, these rules, or other rules applicable in the courts of this state.” Rule 801 provides that a statement is not hearsay if:
The declarant testifies at the trial or hearing and is subject to cross-examination concerning the statement, and the statement is (A) inconsistent with the declarant’s testimony, or (B) consistent with the declarant’s testimony and is offered to rebut an express or implied charge against the declarant of subsequent fabrication, improper influence or motive ....
M. R. Evid. 801(d)(l)(A)-(B).
¶25 Notti contends that the statements offered by the witnesses were consistent with the declarant’s testimony and that the statements were not offered to rebut an express or implied charge of subsequent fabrication. As such, Notti argues that the statements were not admissible as prior consistent statements of a witness and thus, constituted inadmissible hearsay. Regarding prejudice, Notti argues that if defense counsel had objected to the introduction of the four witnesses’ statements, a significant portion of the State’s case would have been eliminated, that the prior consistent statements bolstered Michael’s testimony, and that the statements were at the heart of the State’s case. Notti also argues that there was no conceivable tactical reason for failing to object.
¶26 The District Court determined that the prior consistent statements of two of the four witnesses were admissible under other exceptions to the hearsay rule, the admission of another witness’s statements was harmless error, and, in the case of one witness, there was no repetition of any prior consistent statement. Notti’s arguments and the District Court’s reasons for admitting the statements can be analyzed with respect to each witness.
A. Statements Admitted Through Dispatcher Bruce
¶27 Notti notes that dispatcher Bruce’s testimony consisted entirely of recollecting and playing a tape of the statement made to her by Michael. Dispatcher Bruce testified she was working the morning of May 16, 2000, and received a phone call from Michael. Bruce testified that Michael stated that he wanted to report a “molestation.” Bruce played the 911 tape recording of Michael’s call during her testimony. Though Notti claims this testimony was inadmissible hearsay because M. R. Evid. 801(d)(1)(B) did not apply, the District Court concluded that the statements were otherwise admissible under the Rule 803(2) excited utterances exception. The State argues that, given the testimony was admissible, defense counsel’s performance cannot be deemed deficient for failing to object.
¶28 M. R. Evid. 803(2) states:
The following are not excluded by the hearsay rule, even though the declarant is available as a witness ... (2) Excited Utterance. A statement relating to a startling event or condition made while the declarant was under the stress of excitement caused by the event or condition. [Paragraph breaks omitted.]
¶29 The District Court cited State v. Cameron, 2005 MT 32, 326 Mont. 51, 106 P.3d 1189, in support of its conclusion that Michael’s statement constituted an excited utterance. In Cameron, the district court allowed the victim’s sister to testify about a statement made to her by the victim, “Grandpa tried raping me,” which the defendant argued was inadmissible as a prior consistent statement. Cameron, ¶ 30. The victim’s statement came approximately two hours after the assault occurred, during which time the victim had walked home approximately eight miles from the scene of the assault, was weeping, and showed no sign of diminished excitement from the time of the assault to the time of her statement to her sister. Cameron, ¶¶ 33-34. This Court concluded that the victim’s statement constituted an excited utterance as it was related to a startling event while she was still under the stress caused by the event. Cameron, ¶ 35.
¶30 The District Court reasoned that our decision in Cameron “implies that evaluation of whether a statement is an excited utterance is factually driven depending upon the particular circumstances of the victim.” Notti contends that the facts in Cameron do not lend themselves to application of that holding here.
¶31 Michael testified that he was molested by his brother Tony at 10:00 p.m. on Mother’s Day (May 15,2000). Michael stated that he was scared because Notti held a knife to Michael’s ribcage. Michael testified that, after the sexual assault, he was unable to sleep because he stayed awake to watch Notti, and repeated that he was scared. Michael said that he considered calling the police earlier than he did, but did not do so because Notti told Michael to stay in bed. Michael testified that around 7:00 a.m., as Notti was getting ready to leave the apartment, he again instructed Michael to stay in bed. Michael stated he was still afraid in the morning. Finally, Michael testified that after Notti left the apartment, Michael hooked up the telephone, which Notti had disconnected, and called 911.
¶32 As in Cameron, the evidence supports a conclusion that Michael made his statement to Bruce while still under the stress of a startling event-sexual assault by his brother at knifepoint. Michael had stayed awake all night in fear of Notti, and had been confined to his bed by Notti’s order. He testified repeatedly that he was scared, not only during the incident itself, but also afterwards into the night and morning. As soon as Notti left Michael’s apartment, Michael reconnected the telephone and called 911 to report the incident. As such, we reject Notti’s contention that the facts in Cameron require a different application of the rule here.
¶33 Because the statement made by Michael to dispatcher Bruce constituted an excited utterance under M. R. Evid. 803(2), we hold that Geranios did not perform deficiently by not objecting, and we affirm the District Court’s conclusion that Geranios’ failure to object did not constitute ineffective assistance of counsel.
B. Statements Admitted Through Officer Guy
¶34 Notti argues that the substantive portion of Officer Kenneth Guy’s testimony consisted of reciting, from Guy’s report, Michael’s statements to Guy about the incident. Notti claims that this testimony was inadmissible hearsay. Officer Guy testified that when he interviewed Michael on May 16, 2000, Michael had initially told Guy that Notti had stolen a number of personal items and money. Officer Guy testified that he then asked Michael if anything else had happened and it was then that Michael told him that Notti had approached Michael and asked him to have sex, that he and Notti had never had sexual relations in the past, and that he had told Notti he did not want to have sex. Officer Guy also testified that Michael said he was very afraid of Notti.
¶35 The State argues that the District Court correctly concluded that even if Geranios should have objected to Officer Guy’s statements as inadmissible hearsay, Notti cannot establish prejudice under the second prong of the Strickland test. The State also notes that in his closing arguments, Geranios focused on those hearsay statements repeated by Officer Guy that worked in Notti’s favor, namely, that Michael initially told Officer Guy that Notti stole Michael’s tools, rather than reporting the sexual assault, and that Michael had a loaded gun he could have used to protect himself. The District Court, applying State v. Veis, 1998 MT 162, 289 Mont. 450, 962 P.2d 1153, concluded that because defense counsel had and took the opportunity to cross-examine Michael in regard to 'the substance of Officer Guy’s hearsay statements, any admission of Guy’s statements was harmless error. Notwithstanding the District Court’s harmless error conclusion, we conclude that Notti has failed to satisfy the second prong of the Strickland test and show that Officer Guy’s testimony was prejudicial.
¶36 The two prongs of the Strickland test need not be analyzed in order if the defendant has made an insufficient showing as to one of the prongs. State v. Kearney, 2005 MT 171, ¶ 20, 327 Mont. 485, ¶ 20, 115 P.3d 214, ¶ 20. Furthermore, if it is possible to dispose of an ineffective assistance of counsel claim on the ground of lack of prejudice, then that course should be followed, to “avoid unnecessarily grading counsel’s performance.” State v. Diaz, 2006 MT 303, ¶ 25, 334 Mont. 479, ¶ 25, 148 P.3d 628, ¶ 25.
¶37 Under the second prong of Strickland, a defendant must show “there is a reasonable probability that, but for counsel’s unprofessional errors, the result of the proceeding would have been different. A reasonable probability is a probability sufficient to undermine confidence in the outcome.” Strickland, 466 U.S. at 694, 104 S. Ct. at 2068. “However, it is entirely possible within the framework of Strickland to find attorney error which possibly prejudiced the defendant, yet conclude that such error did not rise to a level serious enough to result in a verdict unworthy of confidence.” State v. Hagen, 2002 MT 190, ¶ 23, 311 Mont. 117, ¶ 23, 53 P.3d 885, ¶ 23. The defendant bears a heavy burden and must show trial counsel’s performance was so deficient as to deprive the defendant of a fair trial. Hagen, ¶ 23. Notti has failed to meet this burden.
¶38 Even assuming that defense counsel had objected to Guy’s testimony and the objection had been sustained, the result of the proceeding would not have been different. All the prior consistent hearsay statements repeated by Guy that Notti objects to were also testified to by Michael at trial. “[A] defendant is not prejudiced by hearsay testimony when the statements that form the subject of the inadmissible hearsay are admitted elsewhere through the direct testimony of the ‘out-of-court’ declarant or by some other direct evidence.” Veis, ¶ 26 (citations omitted). Guy’s repetition of Michael’s prior consistent statements added no substantive content to Michael’s testimony. Accordingly, we cannot conclude that Notti was prejudiced by Geranios’ failure to object to Guy’s testimony in a manner which would have changed the outcome of the proceeding. We hold that Geranios’ failure to object to Officer Guy’s repetition of Michael’s prior consistent statements did not constitute ineffective assistance of counsel.
C. Statements Admitted Through Emergency Room Physician Weydt
¶39 Notti argues that emergency-room physician Joseph Weydt’s testimony consisted virtually entirely of reciting, from his notes, Michael’s statements to him about the incident, which Notti claims were inadmissible hearsay. The State counters by arguing that the District Court correctly determined that Dr. Weydt’s testimony was admissible under M. R. Evid. 803(4)’s exception for statements for purposes of medical treatment or diagnosis.
¶40 M. R. Evid. 803(4) provides an exception to the hearsay rule for:
Statements made for purposes of medical diagnosis or treatment and describing medical history, or past or present symptoms, pain, or sensations, or the inception or general character of the cause or external source thereof insofar as reasonably pertinent to diagnosis or treatment.
¶41 This Court has ruled that for statements to be admissible under the Rule 803(4) exception, the statements (1) “must be made with an intention that is consistent with seeking medical treatment,” and (2) “must be statements that would be relied upon by a doctor when making decisions regarding diagnosis or treatment.” State v. Whipple, 2001 MT 16, ¶ 22, 304 Mont. 118, ¶ 22, 19 P.3d 228, ¶ 22. The rationale under the first factor is that a declarant seeking medical treatment will tell the truth because the declarant understands that “the effectiveness of the treatment [the declarant] receives may depend largely upon the accuracy of the information [the declarant] provides.” Whipple, ¶ 22 (brackets in original). “Whether or not this two-part test has been met is an evidentiary issue which again involves the district court’s discretion.” State v. Huerta, 285 Mont. 245, 258, 947 P.3d 483, 491 (1997).
¶42 As to the first part of the Rule 803(4) test, the District Court found that the record revealed that Michael’s motives in making the statements to Dr. Weydt were consistent with his seeking medical treatment. Michael called 911 at 6:42 a.m. on May 16, 2000, shortly after Notti left Michael’s apartment, to report that he had been molested. Officer Guy responded to the call and Michael repeated his allegations to Guy. Shortly thereafter, Michael was transported to St. Patrick’s Hospital for treatment. Dr. Weydt testified that he treated Michael at approximately 8:30 a.m., only a short time after Michael became free to seek assistance. When asked if Michael told him what had happened, Dr. Weydt testified:
Um, he came to the emergency department at around eight, eight-thirty, the morning of May 15 [sic]. Initially said-told the nurse that he was molested. He told me that his brother, whom he was with, had apparently been drinking, and that under, um, some threats with a knife, um, that he, in his words, made me suck his dick and then he sucked mine. Those were his words. He said again that he was threatened, told that he would be killed if he told anybody. He said that his brother also put a finger into his anus but that he wasn’t injured in any way. He said that he-there was ejaculation that was on or near his face.
Dr. Weydt further testified that Michael’s demeanor was consistent with the statements he made. Dr. Weydt took Michael’s history and the nurse attending Michael took a number of swabs and fluid samples from Michael. It is clear from the record that the statements Michael made to Dr. Weydt were for the purpose of seeking medical treatment and providing Dr. Weydt with the factual details required to render treatment. Accordingly, the District Court did not err in determining that the first prong of the test for admissibility under Rule 803(4) was satisfied.
¶43 In regard to the second part of the test, Michael’s statements to Dr. Weydt must be of a type that are reasonably relied on by a physician when making diagnosis and treatment decisions. Dr. Weydt testified:
Q. And in the course of your examination do you take a verbal history from the patient?
A. Yes. Always.
Q. And is that history important in making your ultimate diagnosis?
A. Yes. We gather as much information as we have to-or we can. Q. And you rely on that information in making your ultimate opinion?
A. Sure. Yes.
Based on the statements Michael made, Dr. Weydt determined that an STD test or any treatment for possible infection was not necessary due to the nature of Michael’s complaint. In regards to Michael’s statement regarding digital penetration, Dr. Weydt testified that because Michael stated that he was not injured by the penetration, and given the unlikelihood of injury from such a complaint, Dr. Weydt did not conduct an examination. The District Court found that the record reveals that Dr. Weydt relied upon Michael’s statements in treating Michael. Based on what Michael told Dr. Weydt, the doctor made an informed determination as to what treatment would or would not be necessary. Without the statements made by Michael pertaining to the events of the previous night, Dr. Weydt could not have made this determination. Accordingly, the District Court did not err in determining that the second part of the Rule 803(4) test for admissibility was satisfied.
¶44 Because the hearsay statements testified to by Dr. Weydt satisfied both parts of the Rule 803(4) test, they were admissible under the exception for statements for purposes of medical treatment or diagnosis. As such, Geranios’ performance was not deficient for failure to object to the statements.
D. Statements of Detective Ochsner
¶45 Notti contends that defense counsel should have objected to Detective Ochsner’s repetition of prior consistent hearsay statements as well as Ochsner’s testimony regarding the consistency of Michael’s statements. Notti argues that Detective Ochsner added no substantive or probative information not otherwise available through Michael and that Ochsner used the opportunity to testify in order to bolster Michael’s testimony by testifying repeatedly about the consistency of Michael’s story.
¶46 As to Notti’s first contention, the District Court found that Detective Ochsner did not testify as to any prior consistent statements made by Michael on May 16, 2000. While Notti generally asserts that Detective Ochsner “recited parts of the prior statements,” he fails to specifically identify any of these statements. Due to that failure, Notti has not carried his burden to illustrate error on the part of the District Court’s conclusion to the contrary, and we will not disturb the District Court’s determination that Ochsner did not attempt to testify as to any prior consistent statements of Michael.
¶47 Next, Notti offers no primary legal argument or authority as to why Geranios’ failure to object to Detective Ochsner’s testimony constituted ineffective assistance of counsel other than to say that the testimony bolstered Michael’s statement and that M. R. Evid. 403 applies to the detective’s testimony. Pursuant to the Montana Rules of Appellate Procedure, an argument advanced by the petitioner “shall contain the contentions of the appellant with respect to the issues presented, and the reasons therefor, with citations to the authorities, statutes, and pages of the record relied on....” M. R. App. P. 12( l)(f). “It is not this Court’s job to conduct legal research on his behalf, to guess as to his precise position, or to develop legal analysis that may lend support to that position.” Johansen v. State, Dept. of Natural Resources, 1998 MT 51, ¶ 24, 288 Mont. 39, ¶ 24, 955 P.2d 653, ¶ 24. Given Notti’s failure to meet this burden, we affirm the District Court’s determination that Geranios’ failure to object to Detective Ochsner’s statements did not constitute ineffective assistance of counsel.
¶48 Issue Three. Did defense counsel render ineffective assistance of counsel by his conduct in voir dire?
¶49 Notti argues that defense counsel’s failure to elicit information from, or to challenge for cause, jurors Blake Mier and Gregory Kuehn, constituted ineffective assistance of counsel. The District Court found that Geranios did not challenge Jurors Mier and Kuehn because counsel did not believe he had a basis for a challenge for cause and that counsel believed they would be fair jurors.
¶50 “Defense counsel has the duty to ensure a defendant’s right to a fair trial by a panel of impartial jurors.” State v. Lamere, 2005 MT 118, ¶ 15, 327 Mont. 115, ¶ 15, 112 P.3d 1005, ¶ 15. “The purpose of voir dire in a criminal proceeding is to determine the existence of a prospective juror’s partiality.” Lamere, ¶ 15. Pursuant to § 46-16-115(2)(j), MCA, an attorney may challenge a juror for “having a state of mind in reference to the case or to either of the parties that would prevent the juror from acting with entire impartiality and without prejudice to the substantial rights of either party.” Voir dire allows counsel to intelligently exercise their peremptory challenges. State v. Herrman, 2003 MT 149, ¶ 23, 316 Mont. 198, ¶ 23, 70 P.3d 738, ¶ 23. As a general rule, “A lawyer’s rationale for not challenging a juror for cause is strictly a matter of internal thought processes or, perhaps, the subject of an off-the-record discussion between the lawyer and his client.” Herrman, ¶ 28. However, when the record adequately details the reasons for counsel’s actions in voir dire, will we consider an ineffective assistance of counsel claim without the benefit of a postconviction relief proceeding. State v. Racz, 2007 MT 244, ¶ 28, 339 Mont. 218, ¶ 28, 168 P.3d 685, ¶ 28. With these principles in mind, Notti’s arguments as to Jurors Mier and Kuehn and Geranios’ explanations can be analyzed individually.
A. Juror Blake Mier
¶51 Notti argues that Juror Mier was biased against Notti because Mier knew Notti’s prosecutor from a previous case that the prosecutor handled in which Mier was the victim. Mier reported he was satisfied with the prosecution in that case. Mier ultimately served as the foreperson in Notti’s trial. Notti claims that Geranios failed to inquire about Mier’s expressions of bias or whether he could be a fair and impartial juror. Notti argues that minimum professional competence required further inquiry into Mier’s potential bias and Geranios’ failure to act fell below even the minimum profession competence required of defense counsel. Finally, Notti argues that Mier’s absence from the jury panel could have changed the outcome for Notti, especially in light of Mier’s prominence as foreperson.
¶52 The State argues that Geranios’ conduct with respect to Juror Mier did not constitute ineffective assistance of counsel because the record reflects that Geranios prepared for voir dire and made thoughtful decisions throughout the jury selection process. At the hearing, Geranios testified that he asked Mier a number of questions about Mier’s relationship with the prosecutor and also observed his demeanor. Geranios explained how a number of factors come into play in the voir dire process including body language, eye contact, and tone of voice. Geranios noted that Mier was looking at Notti, which Geranios perceived as positive.
¶53 Geranios testified that “it struck me that it did not appear that [Mier] held the State in any particular level of high regard.” Geranios testified that he believed Mier would be a good and fair juror, and that Mier’s demeanor gave Geranios confidence that Mier would “be a fair juror, weigh the evidence, apply the law as directed. He didn’t strike me at all as having any kind of a leaning toward the prosecution.” In fact, when questioned by Prosecutor LaCroix at the evidentiary hearing, Geranios testified, “there was something there with his interaction with you [Prosecutor LaCroix]-I guess I sort of had the feeling he didn’t like you, which from my perspective would probably ... be favorable.” Geranios also testified that he did not believe that a person will be biased in favor of the State just because the person is a victim of a crime that the State prosecutes. Furthermore, when asked whether there was anything that would affect his deliberations or ability to listen to the witness in the case, Mier himself replied “No” and Geranios believed Mier’s statement to be sincere. Finally, Geranios testified that he did not believe that he would have been successful in challenging Mier for cause and that there were other jurors Geranios was more concerned about.
¶54 The District Court concluded that Geranios made a sound strategic decision in not challenging Juror Mier because counsel believed that Mier’s prior dealings with the prosecutor were a positive and not a negative. We agree with the District Court’s conclusion. Defense counsel offered detailed and thoughtful reasons as to why he chose not to challenge Mier or question him further. It cannot be said that Geranios’ performance fell below that level of competence required of counsel under the circumstances. Geranios’ decision was strategic in nature, and Notti has failed to satisfy the first prong of the Strickland test with respect to counsel’s conduct in dealing with Mier.
B. Juror Gregory Kuehn
¶55 Notti contends that Juror Kuehn presented a propensity for bias in favor of the State due to his acquaintance with a number of incest victims in Kuehn’s capacity as a schoolteacher. Notti argues that, “Unless Kuehn was to be eliminated with a peremptory, proper professional practice would have required that this set of circumstances exposing a propensity for bias in favor of the State in a family-rape case be further explored.” Kuehn ultimately served on the jury. Notti contends that Geranios failed to explore this bias, and, as a consequence, Kuehn’s presence on the jury prejudiced Notti.
¶56 The State argues that there was nothing about Kuehn that troubled Geranios and that his employment as a teacher and his knowledge of students who were incest victims did not demonstrate that Kuehn had a built-in bias against Notti. The District Court noted that defense counsel was convinced that Kuehn would be fair to Notti. Geranios testified, “I don’t believe that [Kuehn] said anything on any questioning by the State that concerned me in any significant way as far as putting me in a position where I needed to challenge him for cause.” Later Geranios testified, “I guess we’re kind of discussing some intangibles, but [Kuehn] did not seem like he would be biased; I think he would weigh the evidence fairly.” When asked whether he believed he would have been successful in a motion to excuse Kuehn because he was a schoolteacher who taught children who were the victims of molestation, Geranios replied:
Based on the answers that he gave and my sense of him, um, no. But, again, I don’t know that I was even looking at-at that prospect very seriously because I was satisfied with his answers, I was satisfied that he was probably going to be a fair juror.
Geranios also testified that there were other jurors that concerned him more than Kuehn and he ultimately felt that Kuehn would be a fair juror.
¶57 The testimony of Geranios at the hearing supports the conclusion that he made an informed strategic decision not to challenge Kuehn or question him further. As such, Notti has failed to satisfy the first prong of the Strickland test with respect to counsel’s conduct in dealing with Kuehn. The District Court did not err in concluding that Geranios did not render ineffective assistance of counsel during voir dire.
C. Cumulative Error
¶58 Finally, Notti argues that prejudice accrued through the individual and cumulative effects of defense counsel’s actions and omissions. Notti cites State v. Jefferson, 2003 MT 90, 315 Mont. 146, 69 P.3d 641, for the proposition that it is appropriate to consider the circumstances of the entire proceeding to determine whether Notti was prejudiced. Notti contends that the cumulative effect of Geranios’ failure to object to DNA evidence, his failure to object to the prior consistent statement testimony of the four state witnesses, and his actions and omissions in voir dire was prejudicial to Notti. However, after reviewing these contentions individually, we concluded above that either no error or no prejudice arose from any of them. Therefore, there can be no “cumulative error” here, and we need not consider the argument further.
¶59 Issue Four. Did the District Court err in failing to hold an evidentiary hearing on the prior consistent hearsay statements of four state witnesses?
¶60 Notti asserts that the District Court erred by failing to follow the law of the case when it did not hold an evidentiary hearing on all of Notti’s postconviction claims-specifically, his claims regarding Geranios’ failure to object to the prior consistent hearsay statements of the four state witnesses. As mentioned above, in Notti I we determined that a postconviction relief proceeding was necessary to address Notti’s ineffective assistance of counsel claims because the record did not reveal the reasons for the challenged actions of defense counsel. Notti, ¶¶ 9-10.
¶61 Notti argues that the District Court should be reversed for disregarding the law of the case as established in Notti I. The law of the case doctrine holds that:
“[W]here, upon an appeal, the Supreme Court, in deciding a case presented states in its 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, both in the trial court and upon subsequent appeal.. . .”
Zavarelli v. Might, 239 Mont. 120, 124, 779 P.2d 489, 492 (1989) (quoting Carlson v. Northern Pacific Railway Co., 86 Mont. 78, 281 P. 913, 914 (1929)). Notti claims that in Notti I, “this Court reviewed the trial transcript and ruled that an evidentiary hearing was necessary to address issues raised by Appellant because the record did not establish on-record the reasons for any of the challenged actions of trail [sic] counsel.” While we agree with Notti’s contention that courts are mandated to follow the law of the case, we first note that Notti has overstated our actual holding in Notti I.
¶62 In Notti I, we concluded that defense counsel’s alleged deficiencies could not be reviewed on direct appeal and held that “the ineffective assistance of counsel claim is dismissed without prejudice to its being raised in a post-conviction relief proceeding.” Notti, ¶¶ 9-10. Notably, we did not expressly mandate that a hearing must be conducted, but only that Notti’s claims could be pursued.
¶63 The law does not require district courts to conduct a hearing in every post-conviction proceeding. “If a district court finds that the allegations in a petition are without merit or would not otherwise entitle a petitioner to relief, a district court may deny an application for postconviction relief without holding an evidentiary hearing.” State v. Cobell, 2004 MT 46, ¶ 12, 320 Mont. 122, ¶ 12, 86 P.3d 20, ¶ 12. “The decision to hold an evidentiary hearing in a postconviction relief proceeding is discretionary and is reviewed for abuse of discretion.” Ford v. State, 2005 MT 151, ¶ 6, 327 Mont. 378, ¶ 6, 114 P.3d 244, ¶ 6.
¶64 Here, the filing of Notti’s postconviction relief petition in the District Court was followed by the filing of briefing by both parties which presented detailed and comprehensive arguments in respective support of, and opposition to, the merits of Notti’s claims. This extensive flushing out of the claims with arguments for and against was appropriate and as it should be. However, the District Court was provided with a substantially different presentation of the case than what was presented to this Court in Notti I. In that appeal, the State primarily offered a procedural defense, arguing that “the record does not reveal the basis upon which the State offered the testimony, nor the reason why Geranios did not object to it.” Notti could not refute this contention which, under our case law, prevents claim review on direct appeal. Then, in the District Court, the State offered positions against the merits of Notti’s postconviction claims: that Geranios was not required to object because the statements were admissible under several hearsay exceptions, and that because Geranios had relied on a number of the witnesses’ statements for use in Notti’s defense, his decisions were strategic in nature. These arguments were briefly mentioned in the State’s appellate briefing in Notti I, but only as alternatives to its primary procedural argument.
¶65 After reviewing the extensive postconviction filings, the District Court ordered a hearing on two of Notti’s claims. First, regarding the trial testimony of crime lab technician Griffin, the District Court determined from Geranios’ hearing testimony that he had made a strategic decision not to object because the testimony supported his theory of the case (See Issue One, supra). Second, in regard to Geranios’ actions and omissions during voir dire questioning, the District Cotut again concluded from Geranios’ hearing testimony that he had made reasonable strategic decisions (See Issue Three, supra). Concluding that a basis for decision on Notti’s other four claims existed without a hearing, the District Cotut decided those without taking further evidence.
¶66 A decision by this Court to the effect that a claim may be pursued in a postconviction relief proceeding does not necessarily create the right to a hearing as a matter of law of the case. The need for a hearing remains a discretionary call by the district court after review of the claims. Further, even if we were to conclude that the law of the case doctrine was implicated in a particular case, we review a district court’s actions regarding law of the case issues under an abuse of discretion standard. State v. Gilder, 2001 MT 121, ¶ 8, 305 Mont. 362, ¶ 8, 28 P.3d 488, ¶ 8. “Law of the case should not be applied woodenly in a way inconsistent with substantial justice.” U.S. v. Miller, 822 F.2d 828, 832 (9th Cir. 1987).
¶67 Given our decisions herein on the merits of Notti’s claims, wherein we conclude that the District Court correctly analyzed and denied those claims, the outcome would not have been any different had a hearing been conducted. Further, Notti does not identify any additional evidence he would have presented had a hearing been conducted on those claims. Consequently, we conclude that the District Court did not abuse its discretion in conducting a hearing for only two of Notti’s claims.
¶68 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, MORRIS, COTTER, NELSON and WARNER concur.
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JUSTICE NELSON
delivered the Opinion of the Court.
¶1 Branden Dale Gittens was convicted in the District Court for the Eighth Judicial District, Cascade County, of one felony count of criminal possession of dangerous drugs with intent to distribute and one misdemeanor count of criminal possession of drug paraphernalia. He appeals from these convictions and from the denial of his motion to suppress. We affirm.
¶2 The issues on appeal are as follows:
1. Did the District Court err in denying Gittens’ motion to suppress statements, based on the State’s alleged failure to show that Gittens was properly Mirandized?
2. Did the District Court err in admitting testimony that Gittens claimed was inadmissible evidence of other crimes, wrongs, or acts under M. R. Evid. 404(b)?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 On September 24,2004, Cascade County Sheriffs Deputy Thomas Dalton made a traffic stop in Black Eagle, Montana. Dalton requested backup and Deputy Engelberto Ruiz arrived on the scene. The driver stated that he was going to Gittens’ house. Dalton was aware that Gittens had warrants issued for him in the past, so Dalton ran a warrant check. After discovering that Gittens had active county warrants for his arrest, Dalton and Ruiz allowed the driver to proceed, and they followed the vehicle to Gittens’ residence. While Ruiz went to the front door of the house, Dalton made contact with Gittens outside the back door of the house. Dalton advised Gittens that there was a warrant out for his arrest, and Dalton then placed Gittens under arrest.
¶4 Dalton could smell the odor of burning marijuana coming from Gittens’ person. Dalton requested and received permission from Gittens to search the house. Two other individuals, Richard Aguon and Alex Smithson, were also present in the house, although Smithson left soon after. Ruiz went to search the basement and discovered a 316.4-gram brick of marijuana encased in a cooler. Ruiz also located a number of bongs, marijuana pipes, plastic baggies, a scale, several issues of “High Times” magazine, and other assorted drug paraphernalia. Three of these items bore the words “B Dogg,” which was Gittens’ nickname. After discovering the brick of marijuana, Ruiz notified Dalton, and Dalton came down to the basement along with Gittens. Dalton observed that Gittens started to shake and appeared visibly upset after seeing what Ruiz had discovered. Upon searching the remainder of the house, Ruiz discovered additional drug paraphernalia in Gittens’ bedroom and a “party hookah” inside a box in the living room.
¶5 Dalton contacted the shift supervisor, Sergeant Scott Van Dyken, who arrived a short while later. Van Dyken recommended that Dalton bring Gittens out of the house to videotape Dalton’s reading of Gittens’ Miranda rights and to memorialize that Gittens had consented to the search of his house. Dalton then took Gittens outside to the patrol car to read him his rights. The patrol car had an on-board video camera with audio recording capabilities; however, as Dalton later explained, due to technical difficulties, the microphone did not pick up the conversation. In regard to the video, Gittens asserted in his motion to suppress that “the videotape does not adequately show the face of the person being questioned by the law enforcement officer.” Dalton testified at the suppression hearing that Gittens agreed to talk to him and agreed to waive his rights. Dalton further testified that Gittens admitted to giving away and trading marijuana for “stuff.” Van Dyken also testified as to the equipment’s malfunction and that he was present when Dalton advised Gittens of his Miranda rights and began questioning him. Van Dyken later asked Gittens several questions and also testified that Gittens stated that he traded and gave marijuana to other people.
¶6 The State charged Gittens, by Information, with Count I-criminal possession of dangerous drugs with intent to distribute, a felony in violation of § 45-9-103, MCA, and Count II-criminal possession of drug paraphernalia, a misdemeanor in violation of § 45-10-103, MCA. Gittens pleaded not guilty to the charges. On December 27, 2004, Gittens filed a motion to suppress all the statements he made following his arrest on the ground that the State had failed to demonstrate that he was properly Mirandized. The State filed a response to Gittens’ motion, and the District Court held a suppression hearing on February 8, 2005. After hearing testimony from Deputy Dalton, Deputy Ruiz, Sergeant Van Dyken, and Gittens, the District Court denied the motion to suppress.
¶7 On March 11, 2005, the State filed an Amended Information retaining the original two counts, but adding an alternative charge to Count I, namely, criminal possession of dangerous drugs, a felony, in violation of § 45-9-102, MCA. The matter went to trial on September 26,2005, and lasted two days. Prior to voir dire, defense counsel made a motion in limine under M. R. Evid. 404(b) to prevent the State from introducing Gittens’ statements to the officers that he sometimes traded marijuana for “stuff.” The court denied Gittens’ motion, and the jury heard testimony on this matter. The jury also heard testimony from Dalton, Ruiz, Van Dyken, Gittens’ former roommate Aguon, and State Crime Lab chemist Bahne Klietz. The following day, the jury found Gittens guilty of one felony count of criminal possession of dangerous drugs with intent to distribute and one misdemeanor count of criminal possession of drug paraphernalia.
¶8 The District Court sentenced Gittens to ten years at the Montana State Prison with three years suspended on Count I, and six months in the Cascade County Detention Center on Count II, the two sentences to run concurrently. This appeal followed.
STANDARD OF REVIEW
¶9 We review a district court’s decision to grant or deny a motion to suppress to determine whether the court’s underlying findings of fact are clearly erroneous and whether the court correctly interpreted and applied the law to those findings. State v. Lewis, 2007 MT 295, ¶ 17, 340 Mont. 10, ¶ 17, 171 P.3d 731, ¶ 17. “A trial court’s findings are clearly erroneous if they are not supported by substantial credible evidence, if the court has 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.” Lewis, ¶ 17.
¶10 We generally review a district court’s evidentiary rulings for an abuse of discretion. State v. McOmber, 2007 MT 340, ¶ 10, 340 Mont. 262, ¶ 10, 173 P.3d 690, ¶ 10. A district court abuses its discretion if it acts arbitrarily without the employment of conscientious judgment or exceeds the bounds of reason, resulting in substantial injustice. McOmber, ¶ 10. “Notwithstanding this deferential standard, however, judicial discretion must be guided by the rules and principles of law; thus, our standard of review is plenary to the extent that a discretionary ruling is based on a conclusion of law. In such circumstance, we must determine whether the court correctly interpreted the law.” McOmber, ¶ 10 (quoting State v. Price, 2006 MT 79, ¶ 17, 331 Mont. 502, ¶ 17, 134 P.3d 45, ¶ 17).
DISCUSSION
¶11 Issue One. Did the District Court err in denying Gittens’ motion to suppress statements, based on the State’s alleged failure to show that Gittens was properly Mirandized?
¶12 The Fifth Amendment to the United States Constitution and Article II, Section 25 of the Montana Constitution provide that people have the right not to incriminate themselves. In re Z.M., 2007 MT 122, ¶ 39, 337 Mont. 278, ¶ 39, 160 P.3d 490, ¶ 39. The Supreme Court addressed the right against self-incrimination in Miranda v. Arizona, 384 U.S. 436, 86 S. Ct. 1602 (1966). The Supreme Court stated that “the privilege is fulfilled only when the person is guaranteed the right ‘to remain silent unless he chooses to speak in the unfettered exercise of his own will.’ ” Miranda, 384 U.S. at 460, 86 S. Ct. at 1620 (quoting Malloy v. Hogan, 378 U.S. 1, 8, 84 S. Ct. 1489, 1493 (1964)). “The Miranda Court held that the prosecution may not use statements that stem from a custodial interrogation of a defendant unless the defendant is warned, prior to questioning, that he has a right to remain silent, that any statement he does make may be used as evidence against him, and that he has a right to the presence of an attorney.” State v. Olson, 2003 MT 61, ¶ 13, 314 Mont. 402, ¶ 13, 66 P.3d 297, ¶ 13 (citing Miranda, 384 U.S. at 444, 86 S. Ct. at 1612).
¶13 Section 46-6-107, MCA, which is a codification of the Supreme Court’s holding in Miranda, states, in pertinent part:
Before interrogating a person who is in custody, a peace officer shall inform the person that the person has the right to remain silent, that anything the person says can be used against the person in a court of law, that the person has the right to speak to an attorney and to have an attorney present during any questioning, and that if the person cannot afford an attorney, one will be provided for the person at no cost to the person.
The Miranda warnings are required where the person is subject to a custodial interrogation. See State v. McKee, 2006 MT 5, ¶ 28, 330 Mont. 249, ¶ 28, 127 P.3d 445, ¶ 28; State v. Munson, 2007 MT 222, ¶ 20, 339 Mont. 68, ¶ 20, 169 P.3d 364, ¶ 20.
¶14 An individual may waive his or her Fifth Amendment rights only if the waiver is made voluntarily, knowingly, and intelligently. State v. Cassell, 280 Mont. 397, 400, 932 P.2d 478, 480 (1996) (citing Miranda, 384 U.S. at 444, 86 S. Ct. at 1612); State v. Lucero, 151 Mont. 531, 538, 445 P.2d 731, 735 (1968), abrogated on other grounds, State v. Reavley, 2003 MT 298, 318 Mont. 150, 79 P.3d 270. The State has the burden to prove that the waiver of the constitutional right against self-incrimination was voluntarily, knowingly, and intelligently made. Lucero, 151 Mont. at 538, 445 P.2d at 735.
¶15 The police are not required to tape-record or create an audiovisual record of Miranda warnings and the detainee’s waiver. State v. Grey, 274 Mont. 206, 213, 907 P.2d 951, 955 (1995). However, we have encouraged law enforcement officers “to preserve a tangible record of advising defendants of their rights and a defendant’s waiver of those rights.” Cassell, 280 Mont. at 403, 932 P.2d at 481. Indeed, this Court held in Grey that
in the context of a custodial interrogation conducted at the station house or under other similarly controlled circumstances, the failure of the police officer to preserve some tangible record of his or her giving of the Miranda warning and the knowing, intelligent waiver by the detainee will be viewed with distrust in the judicial assessment of voluntariness under the totality of circumstances surrounding the confession or admission.
Grey, 214 Mont. at 214, 907 P.2d at 956. Likewise, we stated in State v. Lawrence, 285 Mont. 140, 948 P.2d 186 (1997), that “law enforcement officers should preserve a tangible record of the giving and waiver of Miranda when the means to do so are readily available. Failure to do so will result in extreme disfavor with the Court in later determining the voluntariness of a Miranda waiver.” Lawrence, 285 Mont. at 156, 948 P.2d at 195.
¶16 Gittens asserts that the State failed to show that he was properly Mirandized. In particular, Gittens contends that the absence of any “recorded proof’ of the giving of the Miranda warnings and his purported waiver of his Miranda rights raises numerous questions about the interrogation. According to Gittens, “law enforcement did have means readily available to record Miranda warnings and any subsequent waiver of those rights” and “[t]here were no exigent circumstances that would have justified not recording any purported Miranda warning and subsequent waiver.” Thus, he argues, “law enforcement should have properly recorded any purported Miranda warning and subsequent waiver.” Gittens claims that without this recording, the State lacks clear evidence to show that he was Mirandized and that he knowingly, intelligently, and voluntarily waived his Miranda rights. Accordingly, Gittens argues that the District Court erred in not suppressing his statements.
¶17 The State argues that the District Court properly denied Gittens’ motion to suppress. While the State acknowledges the foregoing holding of Grey, the State asserts (citing Cassell and Lawrence) that the only requirement is that “the officers establish to the district court’s satisfaction that the Miranda warnings were properly given, that no impermissible tactics were used, and that under the totality of circumstances the confession was voluntary.” The State contends that these requirements were met by the testimony of Deputy Dalton and Sergeant Van Dyken.
¶18 At the outset, we note that two facets of Gittens’ position on appeal circumscribe our analysis. First, Gittens focuses entirely on the sufficiency of the State’s proof that he was Mirandized and waived his Miranda rights. He does not expressly claim or present an argument that his statements were otherwise involuntary. See State v. Jones, 2006 MT 209, ¶¶ 20-21, 333 Mont. 294, ¶¶ 20-21, 142 P.3d 851, ¶¶ 20-21 (Whether an accused was advised of his or her Miranda rights is but one factor to be considered in determining whether a confession or admission was given involuntarily.).
¶19 Second, Gittens’ motion to suppress was directed at “all statements” he made “after his arrest on September 24, 2004.” Likewise, on appeal, Gittens asserts that “any statements” he made “after his arrest” should have been suppressed. According to Dalton, he placed Gittens under arrest upon making contact with Gittens in the back yard, but did not read Gittens the Miranda warnings until after the search of the house. Yet, Gittens does not identify any particular statements that he made in the interim between his arrest and the Miranda warnings. More importantly, he does not offer an analysis of whether any such statements were volunteered, see e.g. State v. Saxton, 2003 MT 105, ¶ 39, 315 Mont. 315, ¶ 39, 68 P.3d 721, ¶ 39, or made pursuant to a “custodial interrogation,” see Munson, ¶¶ 21-25. Rather, as just noted, his argument is directed at the sufficiency of the State’s proof that he was Mirandized and that he waived his Miranda rights. Accordingly, we will not consider the matter of any “interim statements” further. See In re Marriage of McMahon, 2002 MT 198, ¶ 6, 311 Mont. 175, ¶ 6, 53 P.3d 1266, ¶ 6; M. R. App. P. 12(l)f. Our analysis will focus specifically on whether the District Court correctly concluded that the State’s proof was sufficient.
¶20 Turning now to that question, we disagree with Gittens’ suggestion that the lack of “recorded proof’ of the purported reading and waiver of his Miranda rights compels the suppression of his statements. Gittens reads our cases too broadly. Indeed, we have explicitly recognized that circumstances may preclude the creation of a tangible record. See e.g. Grey, 274 Mont. at 214, 907 P.2d at 956 (“We recognize, as one example, that an officer Mirandizing a suspect in the field at the time of arrest, may not be able to preserve a tangible record of his or her giving of the warning or of the accused’s waiver.”). Thus, our statements that the failure to preserve a tangible record will result in “distrust” and “extreme disfavor” have been directed at situations in which the means to preserve a tangible record were readily available, but the officers failed to avail themselves of those means. See Lawrence, 285 Mont. at 156, 948 P.2d at 195 (“[L]aw enforcement officers should preserve a tangible record of the giving and waiver of Miranda when the means to do so are readily available.” (emphasis added)); Grey, 274 Mont. at 214, 907 P.2d at 956 (“[I]n the context of a custodial interrogation conducted at the station house or under other similarly controlled circumstances, the failure of the police officer to preserve some tangible record . . . will be viewed with distrust.” (emphasis added)).
¶21 Moreover, while we have said that the failure to preserve a tangible record when the means to do so are readily available results in extreme disfavor with the Court, we have never said that the lack of a tangible record mandates suppression of the detainee’s statements. Rather, this is simply one factor that weighs heavily against the State in meeting its burden. Accordingly, the proper inquiry is whether, based on all of the available evidence, the State has met its burden of proving that the officer read the detainee his or her Miranda rights and the detainee waived those rights voluntarily, knowingly, and intelligently. Accordingly, we will consider whether the District Court erred in concluding that the State met its burden of proof in light of all of the available evidence.
¶22 There was a factual dispute between Gittens and the State at the suppression hearing as to whether Gittens was Mirandized. Gittens testified that Dalton never advised him of his Miranda rights and only asked him, “You know your rights, right?” to which Gittens claims he replied, “I guess.” Gittens explained this response as follows: “I kind of understood because I’ve been in that situation before, but he didn’t get into-where he was supposed to be.” Gittens alleged that Dalton never got specific. Gittens stated that Dalton never offered him a written waiver and that he did not know of his rights because he was not informed of them.
¶23 In contrast, Dalton testified that whenever he advised a suspect of his or her Miranda rights, he used a card with the text of the warnings printed on it. Dalton confirmed that he used this card when he read Gittens his rights, and Dalton read the text of the card into the record at the suppression hearing. The card stated:
You have the right to remain silent. Anything you say can and will be used against you in a court of law. You have the right to talk to a lawyer and have your lawyer present while you’re being questioned. If you cannot afford to hire a lawyer, one will be appointed to represent you free of any cost to you. You can decide at any time to exercise these rights and not answer any questions or make any statements.
Dalton further testified that the card contained a section stating: “Waiver after giving Miranda ask, ‘Do you understand each of these rights? And secondly, knowing these rights, do you wish to talk to me now?’ ”
¶24 Dalton explained that after the search of the house and the discovery of the marijuana and drug paraphernalia, he took Gittens out to the front of Dalton’s patrol car, pulled the Miranda card out of his pocket, read Gittens his rights, and asked him if he understood them. Dalton testified that he specifically asked Gittens, “Do you understand each of these rights?” and, “knowing these rights, do you wish to talk to me now?” Dalton stated that Gittens replied “yes” to both questions. Dalton explained that the reason for reading Gittens his rights in front of the patrol car was because the car had a video camera and audio recorder and Dalton wanted to record Gittens being read his rights.
¶25 Dalton testified that he believed the audio and video equipment was working and it was never his intention not to have audio. When asked at the suppression hearing whether he had any explanation for why the audio recorder malfunctioned, Dalton explained that the battery in his microphone may have been dead or the microphone may have been turned to the wrong channel. Dalton testified that he had every intention of getting both the Miranda warning and Gittens’ statement on the tape with audio and video. Dalton stated that the reason he did not obtain a written waiver was because he believed he was recording the reading of Gittens’ rights, but if he had known the audio was malfunctioning, he would have obtained a written waiver. Dalton further testified that Gittens followed him voluntarily out to the patrol car, that Gittens never gave any indication he did not want to talk to Dalton, that Gittens never availed himself of his Miranda rights, and that there was never any indication that his statement was anything other than voluntary.
¶26 Van Dyken testified that he was present when Dalton advised Gittens of his rights and interviewed him. Van Dyken confirmed that Dalton took out his Miranda card and read Gittens his rights and that Gittens replied affirmatively that he understood his rights and was willing to talk to Dalton. Van Dyken indicated that the process was very much “by the book.” Van Dyken further remarked that he was not aware the audio had malfunctioned and that it was also his intention that the warning and any subsequent statement be recorded.
¶27 After hearing testimony from Dalton, Van Dyken, and Gittens, the District Court found that Gittens was in custody and that he was Mirandized. The court further found that there was no indication of coercion or inducement. The court found that Gittens was not impaired and that he waived his rights voluntarily. In making these findings, the court found the officers’ testimony to be credible, whereas it found Gittens’ testimony not to be credible.
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, ¶ 23, 170 P.3d 444, ¶ 23. Accordingly, we defer to the District Court’s determination that Dalton’s and Van Dyken’s testimony was more credible than Gittens’ testimony.
¶28 Gittens relies on Grey in making his argument that the District Court erred in denying his motion to suppress; however, the facts in Grey can be distinguished from those present here. In Grey, we concluded that the police gave mere lip service to the Miranda requirements. Grey, 274 Mont. at 213, 907 P.2d at 955. Whereas the officer in Grey testified that he could not remember exactly what he told Grey in giving Grey his Miranda rights, Dalton specifically recalled that he read Gittens his rights from the card Dalton carried with him and that he read from this card when he Mirandized Gittens. In Grey, the officer chose not to use a waiver form because “he did not want to jeopardize the interrogation.” Grey, 274 Mont. at 213, 907 P.2d at 955. In contrast, Dalton testified that the reason he did not obtain a written waiver from Gittens was because he believed that the reading of Gittens’ rights and subsequent waiver were being recorded on audio and video. Dalton’s and Van Dyken’s testimony reflects that they made a good-faith effort to preserve a record of the reading and waiver. In Grey, the police used impermissible procedures and tactics, including making false statements, in order to obtain Grey’s confession. Grey, 274 Mont. at 212, 907 P.2d at 955. In comparison, the hearing testimony supports the District Court’s finding that Dalton and Van Dyken did not use coercive tactics, and there is no credible evidence to suggest that Gittens’ statements were anything but voluntary. Finally, Dalton and Van Dyken both testified that Gittens made an express, verbal waiver of his rights, whereas the officer in Grey testified that Grey impliedly waived his rights by agreeing to talk with the officers. Grey, 274 Mont. at 213, 907 P.2d at 955. Grey clearly is factually distinguishable from Gittens’ situation.
¶29 Based on all of the available evidence surrounding the reading and waiver of Gittens’ Miranda rights, we hold that the District Court did not err in concluding that the State met its burden of showing that those rights were read to Gittens and that he voluntarily, knowingly, and intelligently waived them. The District Court found that law enforcement officers Mirandized Gittens by way of reading him the Miranda warnings on Dalton’s card. The District Court further found that Gittens was not impaired and that he waived his rights voluntarily. Substantial credible evidence supports these findings. While there is no tangible record of Dalton reading Gittens his rights or the subsequent waiver, we are satisfied from all the available evidence that the State’s burden of proof was met. Accordingly, we hold that the District Court did not err in denying Gittens’ motion to suppress.
¶30 Issue Two. Did the District Court err in admitting testimony that Gittens claimed was inadmissible evidence of other crimes, wrongs, or acts under M. R. Evid. 404(b)?
¶31 During trial, the following exchange occurred between the prosecutor and Dalton:
Q. . . . Okay. Deputies [sic] Dalton, former Deputy Dalton, again, did the defendant answer you as to where the marijuana came from?
A. Yes.
Q. And what was his response?
A. That he purchased it from a person from out of town.
Q. Okay. Did you ask him if he sold the marijuana?
A. Yes, I did.
Q. Why? Why did you ask that question?
A. Because of the scale, the baggies, all indicated, and the large amount of marijuana there, the baggies, the scale all indicated to me that it was being packaged for resale.
Q. Okay. And this again is from your training?
A. That’s correct.
Q. Did you ask him how he could afford the quantity?
A. Yes, I did.
Q. What was his response?
A. He did not respond.
Q. Okay. Did you ask him what he did with that quantity?
A. Yes. He said he gave it to people. He traded it for stuff. And he used it for himself personally.
Q. Okay. So he gave it to people. Did he explain how he gives it to them?
A. He said that he’d throw a party at the house and just let people smoke marijuana there at his house, or would just trade the marijuana for, again, stuff. He didn’t elaborate what the stuff was. But he traded it or gave it away.
Prior to voir dire, Gittens moved to exclude this testimony on the ground it violated M. R. Evid. 404(b). The District Court denied his motion, reasoning that Gittens’ statement that he “traded [the marijuana] for stuff’ was “a part of this transaction.” In addition, Gittens renewed his objection immediately prior to the foregoing testimony by Dalton, and the court overruled the objection.
¶32 M. R. Evid. 404(b) states:
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.
¶33 In State v. Matt, 249 Mont. 136, 814 P.2d 52 (1991), we modified the rule, first established in State v. Just, 184 Mont. 262, 602 P.2d 957 (1979), for determining the admissibility of other crimes, wrongs or acts under Rule 404(b). The four elements of the Modified Just Rule are:
(1) The other crimes, wrongs or acts must be similar.
(2) The other crimes, wrongs or acts must not be remote in time.
(3) The evidence of other crimes, wrongs or acts is not admissible to prove the character of a person in order to show that he acted in conformity with such character; but may be admissible for other purposes, such as proof of motive, opportunity, intent, preparation, plan, knowledge, identity, or absence of mistake or accident.
(4) Although relevant, evidence may be excluded if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, misleading of the jury, considerations of undue delay, waste of time, or needless presentation of cumulative evidence.
Matt, 249 Mont. at 142, 814 P.2d at 56.
¶34 We observed in Matt that the Modified Just Rule incorporates the various purposes described in Rule 404(b) and, therefore, eliminated the limitation that evidence is admissible only if it shows a common scheme, plan or system. Matt, 249 Mont. at 142, 814 P.2d at 56. In addition, we noted that the Modified Just Rule includes the limiting factors set forth in M. R. Evid. 403. Matt, 249 Mont. at 142, 814 P.2d at 56. Finally, “[a]s 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.” Bieber, ¶ 56.
¶35 Gittens contends that his statements concerning what he did with the marijuana constituted evidence of other crimes, wrongs, or acts pursuant to M. R. Evid. 404(b) and that the statements, therefore, were inadmissible under M. R. Evid. 404(b), since they did not meet the requirements of the Modified Just Rule. More specifically, Gittens claims that the second and fourth criteria of the Modified Just Rule were not met. In addition, Gittens contends that this evidence was not specific to the alleged offense and was highly prejudicial, that the State failed to provide him with the required notice, and that the District Court deprived him of a fair opportunity to have a hearing on the admissibility of the testimony.
¶36 The State argues that Gittens’ statements were admissible under an exception to the Modified Just Rule for acts that are inextricably or inseparably linked with the charged offense. Under this exception, evidence of such acts is admissible, notwithstanding the substantive and procedural criteria of the Modified Just Rule. See State v. Buck, 2006 MT 81, ¶ 75, 331 Mont. 517, ¶ 75, 134 P.3d 53, ¶ 75. In State v. Lozon, 2004 MT 34, 320 Mont. 26, 85 P.3d 753, we noted:
a longstanding distinction exists between Rule 404(b) “other crimes” evidence and evidence of a defendant’s misconduct which is inseparably related to the alleged criminal act. Where the evidence at issue is not wholly independent or unrelated to the charged offense, it is not “other crimes” evidence and the prosecution is not required to comply with the notice requirements of Just and Matt.
Lozon, ¶ 12.
¶37 The transaction rule (§ 26-1-103, MCA) is the codification of the exception to the Modified Just Rule. State v. Marshall, 2007 MT 198, ¶ 16, 338 Mont. 395, ¶ 16, 165 P.3d 1129, ¶ 16. The transaction rule states: “Where the declaration, act, or omission forms part of a transaction which is itself the fact in dispute or evidence of that fact, such declaration, act, or omission is evidence as part of the transaction.” Section 26-1-103, MCA. “Pursuant to the transaction rule, prior acts that are ‘inextricably linked to, and explanatory of, the charged offense are admissible notwithstanding the rules relating to “other crimes” evidence.’ ” Marshall, ¶ 16 (quoting Buck, ¶ 76).
¶38 We agree with the State that Gittens’ statements to Dalton were admissible under the transaction exception to the Modified Just Rule, as the statements were inextricably linked to the charged offense of possession of dangerous drugs with intent to distribute. Gittens made his statements in an interview with Dalton after being Mirandized. The transcript reveals that Dalton’s questions pertained specifically to the drugs and drug paraphernalia found in the basement. Dalton testified:
I asked him if he remembered giving me consent to search the basement, the house and the basement in particular, if he responded, if he remembered responding to me about the drugs and drug paraphernalia, asked him who they were, where he was getting it, where he was purchasing it from, whether or not he was growing, that type of thing.
Furthermore, as reflected in the dialogue quoted in ¶ 31, Dalton’s questions were specifically addressed to “that quantity” of marijuana-i.e., the marijuana he and Ruiz had found in the basement. On cross-examination, defense counsel asked Dalton about Gittens’ statement that he sometimes trades or gives marijuana away, and Dalton reiterated that his questions pertained specifically to the marijuana found in the basement. Defense counsel took issue with the fact that Gittens never told Dalton of his intention to give away or trade the marijuana-specifically, that Gittens never used the word “intent.” However, simply because Gittens never used the word “intent” does not prevent a jury from finding, based on the surrounding facts and circumstances testified to by Dalton, that Gittens intended to distribute the marijuana. See State v. Hall, 249 Mont. 366, 371, 816 P.2d 438, 441 (1991) (“Because it is seldom subject to direct proof, intent must be inferred from the acts of the accused and the facts and circumstances of the offense.”).
¶39 The facts here are analogous to those in Lozon. In Lozon, law enforcement officers conducted a search of the defendant’s room and discovered a vial containing methamphetamine. Lozon, ¶ 3. Although Lozon refused to respond when asked whether the vial was his, he later stated, after being read his Miranda rights, that he had used methamphetamine the prior night. Lozon, ¶ 3. At trial, Lozon objected to testimony regarding this statement, arguing that it was inadmissible evidence of other crimes under M. R. Evid. 404(b). Lozon, ¶¶ 5, 9. The district court admitted the testimony and we affirmed the district court’s ruling on the ground Lozon’s statement was admissible under the transaction rule. Lozon, ¶ 14. We explained:
His statement to law enforcement officers that he had used methamphetamine in his room the night before the search is closely related to the charged offense of possession of dangerous drugs, and is explanatory of the circumstances surrounding the offense, because it establishes his knowledge and possession of drugs in his room shortly prior to the early morning search.
Lozon, ¶ 13. Likewise, in the case at hand, Gittens’ statement that he sometimes gives or trades marijuana for “stuff’ is closely related to the charged offense of possession of dangerous drugs with intent to distribute and is explanatory of the circumstances surrounding this offense.
¶40 In light of the evidence found by the officers in the house-the large quantity of marijuana, the numerous items related to the distribution of drugs, and the paraphernalia for ingesting drugs-we conclude that Gittens’ statements regarding his giving away and trading marijuana were inextricably linked to the charged offense of possession of dangerous drugs with intent to distribute.
¶41 We hold that the District Court correctly interpreted and applied the transaction rule in admitting the statements Gittens made to Deputy Dalton.
CONCLUSION
¶42 Based on all of the available evidence, the District Court did not err in concluding that the State met its burden of showing that the Miranda rights were read to Gittens and that he voluntarily, knowingly, and intelligently waived them. Furthermore, the District Court did not err in admitting testimony regarding Gittens’ statements that he trades or gives away marijuana, as the statements were admissible under the transaction rule.
¶43 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER and MORRIS concur.
Ruiz described the “party hookah” as a large bong with “three tubes so three people can smoke at once ...”
We note that the District Court did not enter any written findings of fact with respect to Gitten’s suppression motion. Rather, the court’s written order simply refers to “the reasons stated on the record.” In State v. Stoumbaugh, 2007 MT 105, 337 Mont. 147, 157 P.3d 1137, we observed that “a district court’s rendering of findings of fact and conclusions of law from the bench can quite easily be inadequate. Without careful drafting, issues can be overlooked and a decision issued which is insufficient for appellate review, resulting in remand.” Stoumbaugh, ¶ 31. We therefore urged the district courts “to resolve factual and legal issues regarding suppression by way of a written order.” Stoumbaugh, ¶ 31. We do so again here.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Raul C. Sanchez (Sanchez) appeals from his conviction in the Twentieth Judicial District, Sanders County, of deliberate homicide. We affirm.
¶2 We restate the issues as follows:
¶3 Did the District Court improperly allow Aleasha’s statements to be introduced over Sanchez’s hearsay objections?
¶4 Did the introduction of Aleasha’s note violate Sanchez’s Sixth Amendment right to confrontation?
¶5 Did the prosecutor’s closing argument deny Sanchez the right to a fair trial?
¶6 Did the “lesser included offense” language of the mitigated deliberate homicide instruction impermissibly allow the jury to consider sentencing in reaching its verdict?
BACKGROUND
¶7 Sanchez shot and killed Aleasha Chenowith (Aleasha) outside her home on the night of July 19, 2004. Later that evening, Sanchez turned himself in to law enforcement and admitted shooting Aleasha. The State charged Sanchez with deliberate homicide for Aleasha’s death.
¶8 Before trial, Sanchez moved to exclude a note the State proposed to offer as a trial exhibit. The note read:
To whom it concerns:
On July 8, 04 around 10:30 p [sic] Raul Sanchez Cardines told me if I ever was cought [sic] with another man while I was dating him, that he would kill me. Raul told me he had friends in Mexico that had medicine that would kill me and our doctors wouldn’t know what it was till it was to [sic] late and I would be dead.
So if I unexspetly [sic] become sick and on the edge of death, and perhaps I die no [sic] you will have some answers.
Aleasha Chenowith (written and printed signature)
¶9 Sanchez argued that the note should be excluded because it contained inadmissible multiple hearsay and would also violate his Sixth Amendment right to confrontation. The District Court denied Sanchez’s motion and ruled that Aleasha’s note was admissible as a statement under belief of impending death, pursuant to M. R. Evid. 804(b)(2). The District Court concluded that Sanchez’s statements within the note were admissible as either a statement against interest, pursuant to M. R. Evid. 804(b)(3), or as a statement describing Sanchez’s then existing state of mind, pursuant to M. R. Evid. 803(3). The District Court did not address Sanchez’s Confrontation Clause claim. Sanchez’s jury trial began on June 13, 2005.
¶10 At trial, Sanchez testified that he and Aleasha had been dating for approximately four-and-a-half months and that he had contemplated marrying Aleasha. However, Sanchez became suspicious that Aleasha was cheating on him with Angel, one of Sanchez’s co-workers. On July 19, 2004, Sanchez confronted Angel, who confirmed Sanchez’s suspicions. Sanchez testified that when he later spoke with Aleasha, she threatened to create problems for him with law enforcement so that Sanchez would ultimately have his children taken away from him. According to Sanchez, he felt as though “something got dark in [his] head[,]” and he shot Aleasha several times.
¶11 At trial, the State introduced several statements that Aleasha made to others before her death. In addition to the note, the State elicited testimony about other instances in which Sanchez purportedly threatened Aleasha. Pamela Ehrlich testified that Aleasha told her about an argument she had with Sanchez. According to Ehrlich’s testimony, during the argument Sanchez stated, “Me love you, [Aleasha]. Me not love you that much. You cross me, I kill you.” The District Court overruled Sanchez’s hearsay objection. Leann Chenowith, Aleasha’s sister, testified that Aleasha told her that “if [Aleasha] ever made [Sanchez] mad ... he had stuff in Mexico that his friend could give him, and that it would eat her stomach in a matter of days.” This statement was also admitted over Sanchez’s hearsay objection.
¶12 During closing arguments, the prosecutor argued that the jury could convict Sanchez of mitigated deliberate homicide only if the jury found that Sanchez’s response to extreme emotional distress was reasonable, rather than that his explanation for the extreme emotional distress was reasonable. Defense counsel objected that the prosecutor was misinterpreting the jury instructions, and the District Court overruled the objection.
¶13 Sanchez objected throughout the proceedings to the mitigated deliberate homicide jury instruction because the instruction stated that mitigated deliberate homicide was a “lesser included offense” of deliberate homicide. Sanchez argued that the instruction allowed the jurors to indirectly consider sentencing factors in their deliberations. The District Court overruled Sanchez’s objection.
¶14 The jury convicted Sanchez of deliberate homicide, and the District Court sentenced Sanchez to life without parole in Montana State Prison. Sanchez appeals his conviction.
STANDARD OF REVIEW
¶15 We review a district court’s evidentiary rulings for abuse of discretion. State v. Mizenko, 2006 MT 11, ¶ 8, 330 Mont. 299, ¶ 8, 127 P.3d 458, ¶ 8. A court abuses its discretion when it acts arbitrarily, without employing conscientious judgment, or exceeds the bounds of reason, resulting in substantial injustice. State v. Weldele, 2003 MT 117, ¶ 72, 315 Mont. 452, ¶ 72, 69 P.3d 1162, ¶ 72. We review de novo a district court’s interpretation of the Sixth Amendment. Mizenko, ¶ 8. In criminal cases, we review jury instructions in their entirety to determine if they fully and fairly presented the applicable law to the jury. State v. Detonancour, 2001 MT 213, ¶ 57, 306 Mont. 389, ¶ 57, 34 P.3d 487, ¶ 57.
DISCUSSION
¶16 I. Did the District Court improperly allow Aleasha’s statements to be introduced over Sanchez’s hearsay objections?
¶17 “Hearsay is a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted” within the statement. M. R. Evid. 801(c). Hearsay is inadmissible “except as otherwise provided by statute, these rules [of evidence], or other rules applicable in the courts of this state.” M. R. Evid. 802. Sanchez asserts that the District Court erred when it admitted, over hearsay objections, Aleasha’s statements to her sister, Aleasha’s statements to her neighbor, and Aleasha’s note. According to Sanchez, these three statements contain double hearsay and thus, to be admissible, must comply with the multiple-hearsay rule, which requires that all instances of hearsay within a statement conform to a hearsay exception. M. R. Evid. 805. We note at the outset that these three statements contain only one level of hearsay. Montana Rule of Evidence 801(d)(2) provides:
Statements which are not hearsay. A statement is not hearsay if: ... (2) Admission by party-opponent. The statement is offered against a party and is (A) the party’s own statement, in either an individual or a representative capacity ....
(Paragraph breaks omitted.) Thus, the statements attributable to Sanchez are exempt from the hearsay definition; they are not hearsay.
A. Aleasha’s statement to her sister
¶18 Leann Chenowith testified that Aleasha told her that Sanchez had threatened that “if [Aleasha] ever made [Sanchez] mad... he had stuff in Mexico that his friend could give him, and that it would eat her stomach in a matter of days.” The District Court overruled Sanchez’s hearsay objection without stating a specific rationale. Sanchez argues that no hearsay exception applies to this statement and that the District Court erred in admitting the statement.
¶19 We conclude that the District Court correctly overruled Sanchez’s hearsay objection to Leann Chenowith’s testimony because the statement falls outside the hearsay definition. Though Aleasha made the statement outside the courtroom, the record reveals no indication that the State sought to prove that Sanchez actually could obtain poison from acquaintances in Mexico. The State may have offered the statement to show a pattern of threats or that Sanchez contemplated killing Aleasha; however, these rationales are not objectionable on hearsay grounds. The District Court correctly overruled Sanchez’s hearsay objection because the State did not offer the statement to prove the truth of the matter asserted, and thus, the statement was not hearsay.
B. Aleasha’s statement to her neighbor
¶20 Pamela Ehrlich testified that Aleasha told her that, during an argument, Sanchez stated, “[m]e love you, [Aleasha]. Me not love you that much. You cross me, I kill you.” The District Court again overruled Sanchez’s hearsay objection without stating a specific rationale. Sanchez argues that no hearsay exception applies to this statement and that the District Court erred in admitting the statement. The State apparently combines its arguments relating to the statements of Aleasha’s neighbor and Aleasha’s sister and responds that Aleasha’s statements could be admissible as excited utterances, present sense impressions, or statements made under a belief of impending death. Alternatively, the State argues that if the District Court erred its error was harmless.
¶21 Our review of the record convinces us that the hearsay exceptions proposed by the State are inapplicable to this statement. The “present sense impression” hearsay exception applies to statements made “while the declarant was perceiving the event or condition, or immediately thereafter.” M. R. Evid. 803(1). Ehrlich’s testimony reveals that Aleasha’s statement recounted a threat Sanchez made the prior evening. Thus, Aleasha’s statement described an event that she “perceived” the prior evening, rather than a “present sense impression.” The “excited utterance” hearsay exception applies to statements “relating to a startling event or condition made while the declarant was under the stress of excitement caused by the event or condition.” M. R. Evid. 803(2). Ehrlich testified that Aleasha seemed unconcerned by Sanchez’s threat and that Aleasha remarked, “[Sanchez] was nothing more than a dumb little Mexican. He ain’t got the balls to do nothing.” Aleasha’s comments indicate that she lacked the “stress of excitement” necessary to implicate the excited utterance exception. Similarly, we conclude that the “statement under belief of impending death” hearsay exception is inapplicable because Aleasha’s comments indicate that she did not make the statement “while believing that [her] death was imminent,” and her statement did not concern “the cause or circumstance of what [she] believed to be impending death.” M. R. Evid. 804(b)(2).
¶22 Though no exceptions apply to Aleasha’s hearsay statement, we agree with the State that the District Court committed harmless error because the State presented other admissible evidence that proved the same facts as the hearsay evidence. We apply the “cumulative evidence” test to determine whether a district court’s trial error is harmless. State v. Van Kirk, 2001 MT 184, ¶ 43, 306 Mont. 215, ¶ 43, 32 P.3d 735, ¶ 43. Under the “cumulative evidence” test, we consider a trial error harmless if the State demonstrates that the “fact-finder was presented with admissible evidence that proved the same facts as the tainted evidence and, qualitatively, by comparison, the tainted evidence would not have contributed to the conviction.” Van Kirk, ¶ 47. In Van Kirk, we abandoned the “overwhelming evidence” test, which emphasized the quantity of admissible evidence proving guilt, in favor of the “cumulative evidence” test, which focuses on the qualitative impact the inadmissible evidence may have on the fact-finder. Van Kirk, ¶ 43.
¶23 Sanchez testified that his suspicions of Aleasha’s infidelity were confirmed on Monday morning, July 19, 2004, when Angel, a coworker, admitted sleeping with Aleasha. Sanchez testified that he then arranged for his daughters to sleep at a friend’s house so that he and Aleasha could talk without his children present. He testified that he bagged up Aleasha’s clothes and dropped them off at her house. He knocked on the door, but no one answered, and Sanchez returned to work. Sanchez testified that he recognized a vehicle outside Aleasha’s house as he drove home from work and that he knew that Angel was at Aleasha’s house. Sanchez testified that he retrieved his pistol from his home, went to a store and bought ammunition, and then returned to Aleasha’s house. Again, no one answered the door, and Sanchez went home. When Aleasha called him that evening and asked him to come to her house, he returned to Aleasha’s and parked outside her house, with the gun on the seat next to him. He testified that she came outside, they argued, and he grabbed his gun and shot her when she threatened to have his children removed from his care.
¶24 Jason Sheehan, one of Sanchez’s co-workers, testified that Sanchez mentioned during the lunch break that Sanchez was upset because Aleasha had cheated on him. Sheehan testified that Sanchez stated that he was going to go to Aleasha’s house, drop off her clothes, and “maybe slap her around a little bit.” Sheehan also testified that Sanchez stated that “maybe he would get out his 9 [millimeter pistol] and go shoot her.” At no point did Sanchez object to Sheehan’s testimony.
¶25 In light of the damaging testimony from Sheehan and Sanchez, we conclude that the District Court committed harmless error in admitting Aleasha’s hearsay statement. The testimony of Sanchez and Sheehan presented the jury with cumulative evidence that proved the same facts as Aleasha’s statement. Moreover, given the character of Sanchez’s and Sheehan’s in-court testimony, the jury was presented with evidence of deliberate homicide that qualitatively outweighed any impact that Aleasha’s statement may have had on the jury. The jury heard from Aleasha’s killer himself, that, after learning of Aleasha’s infidelity, he made arrangements for the care of his children, he went to the store and purchased ammunition, he took the loaded gun to Aleasha’s house, he waited for her to come outside, and he shot her after a brief argument. We conclude that the qualitative nature of Sanchez’s testimony outweighs any qualitative impact that Aleasha’s hearsay statement may have had on the jury and that no reasonable possibility exists that the hearsay statement contributed to the conviction, and thus, any error is harmless. Van Kirk, ¶ 47.
C. Aleasha’s note
¶26 At trial, the State offered a note written by Aleasha that stated:
To whom it concerns:
On July 8, 04 around 10:30 p [sic] Raul Sanchez Cardines told me if I ever was cought [sic] with another man while I was dating him, that he would kill me. Raul told me he had friends in Mexico that had medicine that would kill me and our doctors wouldn’t know what it was till it was to [sic] late and I would be dead.
So if I unexspetly [sic] become sick and on the edge of death, and perhaps I die no [sic] you will have some answers.
Aleasha Chenowith (written and printed signature)
Sanchez objected to the note’s admission on hearsay grounds throughout the pre-trial proceedings and at trial. The District Court overruled Sanchez’s hearsay objection and concluded that M. R. Evid. 804(b)(2), the hearsay exception for statements made under belief of impending death, removed Aleasha’s written statements from the hearsay rule. Sanchez argues that Aleasha’s note does not indicate that she feared imminent death, and thus, the District Court erred in admitting the note as a dying declaration.
¶27 We agree with Sanchez that the District Court incorrectly relied on the “statement under belief of impending death” hearsay exception to admit Aleasha’s note. This exception applies to statements “made by a declarant while believing that the declarant’s death was imminent, concerning the cause or circumstance of what the declarant believed to be impending death.” M. R. Evid. 804(b)(2). Aleasha’s statements that “if I [unexpectedly] become sick” and “perhaps I die” indicate that she viewed her death as neither certain nor imminent. (Emphases added.)
¶28 However, as with Ehrlich’s testimony, we conclude that the District Court’s ruling constituted harmless error. As discussed in ¶ 19, the statements relating to Sanchez’s Mexico connections fall outside the hearsay definition because the State did not offer the statements to prove that Sanchez actually could obtain poison from sources in Mexico. Sanchez’s threat that he would kill Aleasha if she committed adultery presents the only questionable portion of Aleasha’s note. The threat’s substance essentially mirrors Sanchez’s “[y]ou cross me, I kill you” statement, and we conclude that this statement’s admission constitutes harmless error for the same reasons.
¶29 The testimony of Sheehan and Sanchez presented the jury with cumulative evidence that proved the same facts that Aleasha’s note sought to prove. Further the qualitative nature of their testimony outweighs any qualitative impact that Aleasha’s hearsay statement may have had on the jury; we can conceive of no evidence more qualitatively damning than Sanchez’s narration of the day he killed Aleasha. Further, Sheehan’s account of Sanchez’s lunchtime comment that “maybe he would get out his 9 and go shoot [Aleasha]” confirmed that Sanchez contemplated killing Aleasha shortly after learning of her transgression. In light of the evidence presented by Sanchez’s and Sheehan’s testimony, we conclude that no reasonable possibility exists that the statement in the note contributed to Sanchez’s conviction, and thus, any error is harmless. Van Kirk, ¶ 47.
¶30 II. Did the introduction of Aleasha’s note violate Sanchez’s Sixth Amendment right to confrontation?
¶31 Sanchez claims that the District Court violated his constitutional right to confrontation under both the United States and Montana Constitutions when it admitted Aleasha’s note as evidence. Sanchez argues that the note was “testimonial” hearsay and thus was inadmissible unless the court found (1) that the declarant was unavailable, and (2) that there was a prior opportunity for cross-examination. Though Sanchez concedes Aleasha’s unavailability, he asserts that he had no opportunity to question her about the note.
¶32 The Sixth Amendment of the United States Constitution, applicable to the States through the Fourteenth Amendment, guarantees criminal defendants the right to be confronted with the witnesses against them. The Sixth Amendment’s Confrontation Clause applies only to testimonial hearsay. Davis v. Washington, 547 U.S. 813, 822-826, 126 S. Ct. 2266, 2274-75 (2006). Testimonial hearsay statements are inadmissible unless the declarant is “unavailable” for trial and the defendant had a prior opportunity for cross-examination. Crawford v. Washington, 541 U.S. 36, 68, 124 S. Ct. 1354, 1374 (2004). The Supreme Court emphasized in Crawford that the Sixth Amendment mandates that a testimonial statement’s reliability be tested “in the crucible of cross-examination[,]” not left to the “vagaries of the rules of evidence ....” Crawford, 541 U.S. at 61, 124 S. Ct. at 1370. Additionally, Montana’s Constitution grants a defendant the right to “meet the witnesses against him face to face ....” Mont. Const, art. II, § 24. This provision clarifies that full cross-examination is a critical aspect of the confrontation right. State v. Clark, 1998 MT 221 ¶ 22, 290 Mont. 479, ¶ 22, 964 P.2d 766, ¶ 22.
¶33 Sanchez argues that Aleasha’s note, documenting the date and time of Sanchez’s alleged statement and the substance of his threat, is testimonial because it bears similarities to an affidavit. Additionally, Sanchez equates Aleasha’s note with Lord Cobham’s infamous letter, discussed by the Supreme Court in Crawford, that implicated Sir Walter Raleigh for treason. 541 U.S. at 44-45, 124 S. Ct. at 1360. The State argues that the note is non-testimonial because it reflects “an intent to direct attention (possibly only medical attention) to the reasons for any suspicious illness.”
¶34 Though the United States Supreme Court has declined to comprehensively define “testimonial,” it has supplied a consistent starting point:
[The Confrontation Clause] applies to “witnesses” against the accused-in other words, those who “bear testimony.” [1] N. Webster, An American Dictionary of the English Language (1828). “Testimony,” in turn, is typically “[a] solemn declaration or affirmation made for the purpose of establishing or proving some fact.” Ibid. An accuser who makes a formal statement to government officers bears testimony in a sense that a person who makes a casual remark to an acquaintance does not.
Crawford, 541 U.S. at 51, 124 S. Ct. at 1364; see also Davis, 547 U.S. at 822, 126 S. Ct. at 2274. Thus, to determine whether a witness bears testimony, the Court finds significant the statement’s purpose, the statement’s context, and the audience the statement is intended to reach. In Davis, the Court seemingly retreated from its earlier pronouncements that “statements taken by police officers in the course of interrogations are... testimonial under even a narrow standard” and that “[w]hatever else the term [testimonial] covers, it applies at a minimum to... police interrogations.” Crawford, 541 U.S. at 52, 68, 124 S. Ct. at 1364, 1374. The Davis Court concluded that whether or not a statement made to police officers during an interrogation is testimonial hinges on the interrogation’s primary purpose: if the interrogation’s primary purpose is to “establish or prove past events potentially relevant to later criminal prosecution[,]” the statement is testimonial; if the interrogation’s primary purpose is to “enable police assistance to meet an ongoing emergencyt,]” the statement is non-testimonial. Davis, 547 U.S. at 821-24, 126 S. Ct. at 2273-74. As the Supreme Court’s reasoning in Davis illustrates, the Court finds no particular inquiry dispositive in determining whether a statement is testimonial.
¶35 In State v. Mizenko, we discussed what constitutes a testimonial statement. In general, a declarant’s statements are presumed testimonial if they are knowingly made to a police officer or government agent. Mizenko, ¶ 23. A statement is presumed non-testimonial, however, if the declarant had “objective reason to believe” that the statement served only “to avert or mitigate an imminent or immediate danger” and the agent receiving the statement lacked intent to create evidence. Mizenko, ¶ 23. A statement made to a nongovernmental agent is non-testimonial -unless the declarant had “clear reason to believe that the statement would be used in court as substantive evidence against the defendant....” Mizenko, ¶ 23. Thus, though we declined to formulate a comprehensive definition of “testimonial,” we recognized that certain presumptions arise depending on the intended audience and the purpose of the statement.
¶36 In our Mizenko discussion we also found significant a statement’s context, and we looked to whether a declarant reasonably should expect that the State would use the declarant’s statements at trial. Mizenko, ¶¶ 17-21. We noted the Supreme Court’s characterization of “a casual remark to an acquaintance” as non-testimonial, Crawford, 541 U.S. at 51, 124 S. Ct. at 1364, and we explained that the word “‘casual’... modifies the declarant’s assumption as to what use, if any, the listener might make of the statement.” Mizenko, ¶ 17. If an objective declarant reasonably would expect the State to use the declarant’s statements at trial, then, absent an opportunity for confrontation, the Sixth Amendment bars the admissibility of such statements. Mizenko, ¶ 17. Further, we recognized that a statement’s characterization as testimonial did not depend on government involvement in the declarant’s making the statement: “ ‘Thus, if just before trial a person shoved a written statement under the courthouse door, asserting that the accused did in fact commit the crime, that would plainly be testimonial even though no government official played a role in preparing the statement.’ ” Mizenko, ¶ 19 (quoting Richard D. Friedman, The Confrontation Clause Re-Rooted and Transformed, 2004 Cato Sup. Ct. Rev. 439, 458).
¶37 Aleasha addressed her note “[t]o whom it concerns[.]” Her stated reason for -writing the note was that “if I unexspetly [sic] become sick and on the edge of death, and perhaps I die no [sic] you will have some answers.” The note’s substance indicates that the note’s purpose was to explain her untimely death or poisoning, not to prevent or mitigate future harm. Aleasha’s short note named the person she suspected would kill her and the method he threatened to use. In essence, Aleasha’s note contained information that could establish or prove facts to answer questions regarding how, why, and by whom she had been harmed or killed. The State’s contention that the purpose of Aleasha’s note may have been to “direct attention (possibly only medical attention) to the reasons for any suspicious illness[,]” completely ignores the accusatory nature of the note (as does Justice Rice’s concurrence): in a nine-line note, Aleasha documented the date and time that Sanchez threatened her, she named Sanchez as her suspected killer, she described Sanchez’s motive, and she described his threatened method of execution. Though Aleasha did not address her note specifically to police officers, the note’s substance and its comprehensive salutation indicate that it reasonably included law enforcement.
¶38 Moreover, the circumstances surrounding Aleasha’s note indicate that it bears little similarity to a non-testimonial “casual remark to an acquaintance.” Crawford, 541 U.S. at 51, 124 S. Ct. at 1364. Rather, the circumstances indicate that an objective declarant would reasonably expect the State to make use of her statement: Aleasha memorialized Sanchez’s threat by writing it down on a piece of paper from a yellow legal pad; she used a formal salutation on the note: “[t]o whom it concerns:”; the note asserted that Sanchez had already committed a crime-threatening Aleasha; the note asserted that Sanchez contemplated a future crime-killing Aleasha; and she formally ended her note by both printing and signing her name. Additionally, though Aleasha did not “shove a written statement under the courthouse door,” she did leave the note in a location that an officer investigating her death could easily find it; the officer testified that he found the note on Aleasha’s kitchen counter with her bills and correspondence. Mizenko, ¶ 19. We conclude that Aleasha’s note was testimonial because the purpose of the note was to explain Aleasha’s untimely death or poisoning, the intended audience reasonably included law enforcement, and the circumstances surrounding the note indicate that an objective declarant reasonably should have anticipated that the State would make use of the statements at trial. Our conclusion that Aleasha’s note was testimonial, however, does not end our analysis.
¶39 Though the Supreme Court held in Crawford that the Confrontation Clause mandates cross-examination to assess a testimonial statement’s reliability, the Court nonetheless acknowledged that exceptions to the Confrontation Clause exist. Crawford, 541 U.S. at 62, 124 S. Ct. at 1370. The Court cited the forfeiture by wrongdoing doctrine as one such exception: “the rule of forfeiture by wrongdoing (which we accept) extinguishes confrontation claims on essentially equitable grounds; it does not purport to be an alternative means of determining reliability.” Crawford, 541 U.S. at 62, 124 S. Ct. at 1370. In Davis, the Court again referenced the equitable doctrine, stating that “one who obtains the absence of a witness by wrongdoing forfeits the constitutional right to confrontation.” Davis, 547 U.S. at 833, 126 S. Ct. at 2280.
¶40 As this case presents our first opportunity to consider the forfeiture by wrongdoing doctrine since the Crawford decision, other jurisdictions’ post-Crawford decisions aid our analysis. To the extent that it applies to an admitted and intentional killing, we find persuasive the Sixth Circuit’s reasoning in U.S. v. Garcia-Meza, 403 F.3d 364 (6th Cir. 2005). In Garcia-Meza, a jury convicted the defendant of murdering his wife after hearing testimony from law enforcement officers describing the wife’s hearsay statements concerning a prior assault. At trial, the defendant admitted killing his wife, but argued that her murder was not premeditated. Garcia-Meza, 403 F.3d at 367. On appeal, Garcia-Meza claimed that his right to confrontation was violated when his wife’s hearsay statements were admitted into evidence. Garcia-Meza, 403 F.3d at 369. The Sixth Circuit disagreed and held that Garcia-Meza had forfeited his right to confrontation because his wrongdoing caused her unavailability. Garcia-Meza, 403 F.3d at 370 (citing Crawford, 541 U.S. at 62, 124 S. Ct. at 1370; Reynolds v. U.S., 98 U.S. 145, 158-59, 25 L. Ed. 244, 248 (1879) (“The rule has its foundation in the maxim that no one shall be permitted to take advantage of his own wrong.”)). The Sixth Circuit noted that no dispute existed as to whether the defendant killed his wife; the dispute centered, rather, on whether the defendant acted with premeditation. Thus, the court reasoned, because the defendant was responsible for the declarant’s unavailability, he forfeited his right to confrontation. Garcia-Meza, 403 F.3d at 370.
¶41 The Sixth Circuit specifically rejected Garcia-Meza’s argument that the forfeiture doctrine applies only when the defendant has committed wrongdoing with the intent to prevent the witness from testifying. Garcia-Meza, 403 F.3d at 370. The court stated that the Supreme Court’s affirmation of the forfeiture doctrine’s equitable basis “strongly suggests that the rule’s applicability does not hinge on the wrongdoer’s motive.” Garcia-Meza, 403 F.3d at 370. The court further reasoned that a defendant would benefit if his wrongdoing prevented a witness from testifying against him, regardless of whether or not that was his intent. The Sixth Circuit held that the rule of forfeiture, based on equitable principles, permits no such result. Garcia-Meza, 403 F.3d at 370-71.
¶42 The Sixth Circuit decided Garcia-Meza in the interim between the United States Supreme Court’s Crawford and Davis decisions. In Davis, the Supreme Court further clarified the forfeiture by wrongdoing doctrine. In response to the contention that domestic violence cases require more flexibility regarding testimonial evidence, the Court reiterated that the doctrine operates to extinguish “confrontation claims on essentially equitable grounds.” Davis, 547 U.S. at 833, 126 S. Ct. at 2280 (citations omitted). The Court noted that domestic violence crimes are particularly prone to victim intimidation and coercion to prevent the victim from testifying, and it stated that:
[W]hen defendants seek to undermine the judicial process by procuring or coercing silence from witnesses and victims, the Sixth Amendment does not require courts to acquiesce. While defendants have no duty to assist the State in proving their guilt, they do have the duty to refrain from acting in ways that destroy the integrity of the criminal-trial system.
Davis, 547 U.S. at 831-34, 126 S. Ct. at 2279-80. The Court farther stated that Federal Rule of Evidence 804(b)(6) codifies the forfeiture doctrine. Though primarily dicta, the Davis discussion of the forfeiture doctrine and the Court’s statement that Rule 804(b)(6) “codifies” the doctrine has generally been interpreted by lower courts to require a defendant’s intent to silence a witness by wrongdoing before applying the doctrine. E.g. Colorado v. Moreno, 160 P.3d 242, 245-46 (Colo. 2007) (collecting cases and noting that “the clear consensus in non-murder cases is that the doctrine requires a showing of an intent on the part of the defendant to prevent the declarant from testifying at trial.”).
¶43 Though the Supreme Court’s discussion of the forfeiture doctrine in Davis seemingly casts doubt on the Sixth Circuit’s reasoning in Garcia-Meza, other jurisdictions’ post -Davis decisions concur with the Sixth Circuit that, in homicide cases, the doctrine’s applicability does not depend on whether the defendant intended to silence a witness. For example, in California v. Giles, a murder case, the California Supreme Court held that an “intent-to-silence” element is not a prerequisite to the forfeiture doctrine’s applicability. 152 P.3d 433,443 (Cal. 2007), cert. granted,_U.S._, 128 S.Ct. 976. The defendant in Giles admitted killing his girlfriend, but argued that he acted in self-defense. The California Supreme Court adopted its appellate court’s reasoning that “[fjorfeiture is a logical extension of the equitable principle that no person should benefit from his own wrongful acts.” Giles, 152 P.3d at 443. The court further reasoned that, regardless of whether a defendant specifically intended to prevent a witness from testifying, “[a] defendant whose intentional criminal act renders a witness unavailable for trial benefits from his crime if he can use the witness’s unavailability to exclude damaging hearsay statements by the witness that would otherwise be admissible.” Giles, 152 P.3d at 443.
¶44 The California Supreme Court rejected the defendant’s argument that language from Davis discussing the forfeiture doctrine-‘“when defendants seek to undermine the judicial process by procuring or coercing silence from witnesses and victims”’-supported an intent-to-silence requirement. Giles, 152 P.3d at 443 n. 5 (quoting Davis, 547 U.S. at 833, 126 S. Ct. at 2280). Rather, the court stated that the Supreme Court simply was describing traditional witness tampering cases in a domestic violence context. Giles, 152 P.3d at 443 n. 5. The California court considered it more significant that the Supreme Court reaffirmed the forfeiture doctrine’s equitable nature and clarified that Crawford did not destroy a court’s ability to protect the integrity of its proceedings. Giles, 152 P.3d at 443 n. 5. The Giles court concluded that applying the forfeiture doctrine without an intent-to-silence requirement was proper to protect the integrity of a court’s proceeding: “courts should be able to further the truth-seeking function of the adversary process when necessary, allowing fact finders access to relevant evidence that the defendant caused not to be available through live testimony.” Giles, 152 P.3d at 444.
¶45 Even jurisdictions that impose an intent-to-silence requirement on the forfeiture by wrongdoing doctrine recognize that homicide cases may present an exception. For example, in Illinois v. Stechly, the Illinois Supreme Court left open the possibility of a homicide exception though it determined that the above-quoted language from Davis “strongly connotes a requirement of intent.” 870 N.E.2d 333, 350-53 (Ill. 2007) (plurality). The Stechly court declined to apply the forfeiture doctrine to a sexual abuse case, absent evidence showing that the defendant intended to prevent the witness from testifying, and noted that outside the context of murder cases, the authorities uniformly require proof of intent. Stechly, 870 N.E.2d at 353 (plurality). The court distinguished the majority of cases, which hold that intent is irrelevant, as either predating Davis or as involving the defendant’s murdering the witness. Stechly, 870 N.E.2d at 351-52 (plurality). The Illinois court further noted that jurisdictions that did not impose an intent-to-silence requirement in murder cases feasibly were reconcilable with the general rule requiring intent. Summarizing the reasoning of those cases, the Illinois court stated that those jurisdictions essentially hold that:
[T]he prosecution need not prove that the defendant committed murder with the intent of procuring the victim’s absence. This is consistent with presuming such intent when the wrongdoing at issue is murder. When a defendant commits murder, notwithstanding any protestation that he did not specifically intend to procure the victim’s inability to testify at a subsequent trial, he will nonetheless be sure that this would be a result of his actions. Murder is, in this sense, different from any other wrongdoing in which a defendant could engage with respect to a witness-more than a possibility, or a substantial likelihood, a defendant knows with absolute certainty that a murder victim will not be available to testify.
Stechly, 870 N.E.2d at 352-53 (plurality). Thus, the Illinois court left open the possibility that the intent to prevent a witness’s testimony could be “presumed” in the murder context, while otherwise requiring proof of intent. Stechly, 870 N.E.2d at 352-53 (plurality).
¶46 To the extent that a deliberate criminal act results in the victim’s death, we agree that the forfeiture by wrongdoing doctrine does not hinge on whether the defendant specifically intended to silence a witness. The doctrine derives from the maxim that no person should benefit from the person’s own wrongdoing. Reynolds v. U.S., 98 U.S. at 158-59, 25 L. Ed. at 248; Garcia-Meza, 403 F.3d at 370. The natural result of a deliberate killing is always that the victim is unavailable to testify; we agree with the Giles court that a defendant whose intentional criminal act results in a victim-declarant’s death benefits from the defendant’s wrongdoing if the defendant can use the death to exclude the victim-declarant’s otherwise admissible testimony, regardless of whether the defendant specifically intended to silence the victim-declarant. Giles, 152 P.3d at 443. Such a result undermines the judicial process and threatens the integrity of court proceedings, and though courts may not “vitiate constitutional guarantees when they have the effect of allowing the guilty to go free[,]” nor must they acquiesce in the destruction of the criminal-trial system’s integrity. Davis, 547 U.S. at 833, 126 S. Ct. at 2280.
¶47 The facts of this case are substantially similar to those of Garcia-Meza. Sanchez fatally shot Aleasha, thereby rendering her unavailable as a witness. Sanchez was charged with Aleasha’s homicide, and the State introduced her prior statements. No dispute exists as to whether Sanchez killed Aleasha-he admitted it to law enforcement and at trial. We need not determine whether the defendant’s wrongdoing is the same act for which he was tried because the dispute at trial centered on whether mitigating circumstances existed, not on whether Sanchez killed Aleasha. We conclude that Sanchez forfeited his Sixth Amendment right to confront Aleasha when he killed her. Moreover, Sanchez cannot claim that his Montana constitutional right to “meet the witnesses against him face to face” was violated when his admittedly deliberate wrongdoing prevented such a confrontation. We emphasize the narrow holding on this issue: when a defendant admittedly and deliberately kills another person, thus procuring the person’s unavailability as a witness, the defendant forfeits the constitutional rights to confront the victim at trial. Whether the doctrine of forfeiture by wrongdoing applies to situations in which the defendant disputes the underlying act of “wrongdoing” or to situations in which the wrongdoing does not result in death are issues not presented or addressed in this case.
¶48 Though the District Court failed to address Sanchez’s Confrontation Clause claim and based its ruling on hearsay exceptions, we cannot say the District Court reached an incorrect result. We will uphold a district court’s correct decision, regardless of the stated rationale. State v. Rensvold, 2006 MT 146, ¶ 34, 332 Mont. 392, ¶ 34, 139 P.3d 154, ¶ 34. We conclude the District Court reached the legally correct result.
¶49 III. Did the prosecutor’s closing argument deny Sanchez the right to a fair trial?
¶50 Sanchez asserts that the prosecutor engaged in misconduct by repeatedly misstating the law regarding the elements of mitigated deliberate homicide during closing arguments and that these misstatements denied Sanchez his right to a fair trial. The State maintains that Sanchez has waived his right to appeal this issue because he failed to move the District Court for curative measures, such as a mistrial or a cautionary instruction. As Sanchez points out, however, his objection was overruled, and he had no reason to anticipate that the District Court would issue curative measures. We conclude that Sanchez’s objection during closing arguments properly preserved this issue for appeal. Section 46-20-104, MCA.
¶51 If a prosecutor’s improper comments prejudice a defendant’s right to a fair trial, then the proper remedy is reversal. State v. Stringer, 271 Mont. 367, 381, 897 P.2d 1063, 1072 (1995). Though Sanchez did not move the District Court for a mistrial based on prosecutorial misconduct, we employ the same two-step analysis we use to review a denial of such a motion: we determine first whether the prosecutor made improper comments, and, if so, whether the comments prejudiced the defendant’s right to a fair and impartial trial. State v. Gladue, 1999 MT 1, ¶ 12, 293 Mont. 1, ¶ 12, 972 P.2d 827, ¶ 12.
A. The prosecutor’s comments during closing argument
¶52 Sanchez argues that the prosecutor repeatedly misstated the law regarding mitigated deliberate homicide during the State’s closing argument and rebuttal. Specifically, Sanchez points to the prosecutor’s statement that, to convict for mitigated deliberate homicide, the jury had to find that Sanchez’s response to extreme emotional distress was reasonable, rather than that a reasonable explanation existed for his emotional distress. The prosecutor then argued:
[t]he streets would be littered with corpses if it was reasonable to shoot somebody because they cheated on you and made you angry. Based on your own lifetime experiences you have seen that. You may have been part of it. Did you kill somebody? Did somebody kill you, your friends, other people? No. That answers the question. This is not a reasonable response for a person under these circumstances.
(Emphasis added.) Sanchez argues that the plain language of the mitigated deliberate homicide statute indicates that “reasonable” modifies the defendant’s emotional state, not the defendant’s actions. The statute provides that a person who commits a deliberate homicide, “but does so under the influence of extreme mental or emotional stress for which there is reasonable explanation or excuse” has committed mitigated deliberate homicide. Section 45-5-103(1), MCA. The statute is unambiguous, and we conclude that the prosecutor misstated the law.
¶53 On appeal, the State argues that the prosecutor’s remarks are “troubling” only because they are not presented in their proper context. The State then attempts to furnish this context by directing us to two instances when the prosecutor made “accurate” statements of the law. The first instance the State identifies is an accurate statement of the law; however, the State has misidentified the speaker: it was Sanchez’s counsel, not the prosecutor who properly stated the law on mitigated deliberate homicide. The second instance, though properly attributed to the prosecutor and an accurate statement of the law, was followed directly by an incorrect explanation:
The reasonableness of the explanation or excuse must be determined from the viewpoint of a reasonable person in the actor’s situation. That is, what would a reasonable person do, not what the defendant did. The evidence in this case shows you it was not reasonable. And if it’s not reasonable, there goes mitigated deliberate homicide.
(Emphasis added.)
¶54 The State maintains that improvising during closing arguments frequently results in imperfect syntax and less than crystal clear meaning. The comments at issue, however, demonstrate a blatant misstatement of the law, not mere inadvertence. The prosecutor’s improper closing argument went far beyond appropriate ad-libbing and tested the boundaries of professional ethics. We cannot accept the State’s incongruous arguments in support of the prosecutor’s statements, and we conclude that the prosecutor’s statements were improper.
B. Prejudicial effect of improper comments
¶55 Having determined that the prosecutor improperly stated the law, we must next determine whether the comments prejudiced Sanchez’s right to a fair and impartial trial. Gladue, ¶ 12. We do not presume that a prosecutor’s improper comments prejudiced a defendant’s right to a fair and impartial trial; rather, Sanchez must demonstrate, from the record, that the prosecutor’s misstatements prejudiced him. Gladue, ¶ 27. Additionally, when determining prejudicial effect, we review improper comments in the context of the entire case. Gladue, ¶ 27.
¶56 Sanchez offers as evidence of prejudicial effect a note from the jury to the District Court requesting additional instructions. The note reads: “Your Honor, One of our jurors has requested that you define the term ‘reasonable.’” Sanchez argues that the jury’s note indicates that the jury was confused by the term “reasonable,” that the prosecutor’s improper comments caused this confusion, and that Sanchez’s right to a fair trial was thus prejudiced.
¶57 The jury’s note requested only that the District Court define “reasonable.” The note did not indicate that the jury was confused as to which term “reasonable” modified. Moreover, the jury instruction on mitigated deliberate homicide accurately conveyed § 45-5-103, MCA, which unambiguously states that “reasonable” modifies the explanation for the extreme mental or emotional stress, not the defendant’s act of causing the death of another human being. The jury additionally was presented with defense counsel’s correct interpretation of the law and the District Court’s instructions on mitigated deliberate homicide. The prosecutor also informed the jury that the attorneys’ closing arguments were not evidence. Before closing arguments the District Court read aloud the jury instructions and stated that the instructions “constituted] the law that [the jury] must follow in this case.” American jurisprudence depends on a jury’s ability to follow instructions and juries are presumed to follow the law that courts provide. State v. Turner, 262 Mont. 39, 55, 864 P.2d 235, 245 (1993); Opper v. U.S., 348 U.S. 84, 95, 75 S. Ct. 158, 165 (1954).
¶58 Based on the lack of ambiguity in the mitigated deliberate homicide instruction, the District Court’s oral and written instructions to the jury, and the presumption that the jury followed the law, we conclude that Sanchez has failed to demonstrate that the prosecutor’s improper comments prejudiced his right to a fair and impartial trial.
¶59 IV. Did the “lesser included offense” language of the mitigated deliberate homicide instruction impermissibly allow the jury to consider sentencing in reaching its verdict?
¶60 Sanchez claims that the jury instruction defining mitigated deliberate homicide as a “lesser included offense of Deliberate Homicide” improperly allowed the jury to consider sentencing in reaching its verdict. Sanchez asserts that this language “probably pushed the jurors away from fully considering [his] mitigated deliberate homicide defense.” (Emphasis added.) Sanchez argues that including the word “lesser” in the instruction may have permitted the jury to surmise that Sanchez would receive a lesser sentence if the jury convicted him of mitigated deliberate homicide rather than of deliberate homicide.
¶61 A jury should not consider sentencing in determining a defendant’s guilt or innocence. State v. Brodniak, 221 Mont. 212, 226-27, 718 P.2d 322, 332 (1986) (citations omitted). We recognized in Brodniak that a verdict form containing the terms misdemeanor and felony could permit a jury indirectly to consider a defendant’s punishment. Brodniak, 221 Mont. at 226-27, 718 P.2d at 332. We review jury instructions in criminal cases in their entirety to determine if they fully and fairly presented the applicable law to the jury. State v. Detonancour, 2001 MT 213, ¶ 57, 306 Mont. 389, ¶ 57, 34 P.3d 487, ¶ 57. District courts have broad discretion when instructing juries, and reversible error occurs only if the jury instructions prejudiced the defendant’s substantial rights. State v. Strauss, 2003 MT 195, ¶ 47, 317 Mont. 1, ¶ 47, 74 P.3d 1052, ¶ 47.
¶62 The District Court provided the jury a mitigated deliberate homicide instruction that closely parallels § 45-5-103, MCA, the statute defining mitigated deliberate homicide. The jury instruction correctly stated the law. Additionally, the jury instructions, taken together, accurately set forth the State’s burden of proof and the elements that the jury must find to convict Sanchez of mitigated deliberate homicide or deliberate homicide. To give a jury instruction on mitigated deliberate homicide that would alleviate Sanchez’s concern would be difficult, if not impossible. If, as Sanchez argues, use of the word “lesser” invited the jury to indirectly consider punishment, the same can be said of the word “mitigated”-a term defining the very essence of the described offense. The jury instructions, when viewed in their entirety, fully and fairly presented the applicable law to the jury. Moreover, Sanchez’s speculation that the “lesser included” language probably dissuaded the jury from a mitigated deliberate homicide verdict cannot overcome the presumption that the jury actually followed the law that the District Court provided. Turner, 262 Mont. at 55, 864 P.2d at 245. We conclude that the District Court properly instructed the jury.
¶63 Affirmed.
JUSTICE MORRIS concurs.
In his concurrence, Justice Rice relies on State v. Spencer, 2007 MT 245, 339 Mont. 227, 169 P.3d 384, for the proposition that we should consider the “primary purpose” of Aleasha’s note itself to determine whether the note constitutes a testimonial statement. The concurrence misreads Spencer.
In Spencer, we determined that a three-and-a-half-year-old victim’s statements were non-testimonial after determining that the witnesses testifying about the statements had heard the statements in their capacities as a foster parent and a counselor, rather than as state investigators. Spencer, ¶ 23. Because the statements were made to non-governmental agents, the statements were presumed non-testimonial unless the declarant had “clear reason to believe” that they would be used against the defendant in court. Mizenko, ¶ 23. We concluded, however, that the “clear reason to believe” standard was unworkable when applied to a three-and-a-half-year-old victim and, relying on the United States Supreme Court’s Davis decision, we looked to the “primary purpose” of the interaction between the declarant and the witnesses because the circumstances surrounding the statements bore similarities to an interrogation. Spencer, ¶ 22.
Here, in contrast to Spencer, the declarant, Aleasha, was a competent adult and the circumstances bear no similarities to an interrogation. Even if the circumstances were akin to an interrogation, the proper focus would be on the primary purpose of the interrogation or interaction, not, as the concurrence suggests, on the primary purpose of the statement itself. Moreover, though we concluded in Spencer that the declarant’s age made the Mizenko presumptions unworkable, those presumptions were nonetheless initially implicated and necessitated the “primary purpose” analysis; no presumptions are implicated in this case. For these reasons, Spencer is not applicable to the present case.
Recent holdings of the California Supreme Court in Giles and the Washington Supreme Court in Washington v. Mason, 162 P.3d 396 (Wash. 2007) challenge the Stechly plurality’s claim. Though both the California and Washington cases involved homicide cases, the courts’ holdings that the applicability of the forfeiture doctrine required no intent-to-silence were not limited to homicide cases.
In his special concurrence, Justice Nelson concludes that the Court errs by adopting the reasoning of the California court in Giles. Lest anyone be confused, there is a difference between discussing an opinion from a sister state and “adopting” that court’s reasoning. We do not adopt Giles. Rather, our holding is heavily qualified: the wrongdoing must be deliberate, it must be criminal, and it must result in the victim/declarant’s death. Despite the concurrence’s protestations to the contrary, our holding does not amount to a “broad sweeping statement” as to the applicability of the forfeiture doctrine.
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 Donald Wilkes (Wilkes) appeals from an order of the Workers’ Compensation Court (WCC), denying Wilkes’s summary judgment motion and granting Montana State Fund’s (State Fund) summary judgment motion. We affirm.
¶2 Wilkes presents the following issue for review:
¶3 Whether the WCC properly determined that the sole reliance on actual wage loss in § 39-71-703, MCA, in determining permanent partial disability (PPD) benefits does not violate Wilkes’s constitutional right to equal protection.
PROCEDURAL AND FACTUAL BACKGROUND
¶4 Wilkes worked principally as a farmer. He operated his farm as a sole proprietorship. Wilkes elected not to be covered under a workers’ compensation plan through his farm operation. Wilkes worked part-time as a school bus driver. Wilkes’s employer maintained workers’ compensation insurance through State Fund.
¶5 Wilkes suffered a serious injury in the course and scope of his employment as a school bus driver on March 26, 2002. He sustained a permanent neck injury. State Fund accepted liability and paid to Wilkes medical benefits and temporary total disability benefits. Wilkes’s bus driving job constitutes light-duty labor. Wilkes returned to his part-time bus driving job when he achieved maximum medical improvement. He earns the same wage now as a bus driver that he earned before his injury. Wilkes’s farming duties constitute heavy labor. Wilkes has not been able to resume farming since his injury, however, even after reaching maximum medical improvement. He has been forced to lease out his farming operation as a result.
¶6 State Fund determined that Wilkes was not eligible for PPD benefits after he achieved maximum medical improvement. State Fund denied Wilkes’s PPD benefits pursuant to § 39-71-703(5), MCA, in light of the fact that Wilkes had suffered no actual wage loss from his bus driving job. Wilkes petitioned the WCC for a hearing to challenge the constitutionality of § 39-71-703, MCA. Wilkes argued that § 39-71-703, MCA, violates the Equal Protection Clauses of the Montana Constitution and the U.S. Constitution. He asserted that the statute impermissibly bases PPD benefits solely on actual wage loss instead of considering other relevant factors, such as age, education, and lifting restrictions. The statute’s PPD calculation, according to Wilkes, treats unequally similarly situated classes of workers.
¶7 Wilkes and State Fund filed cross-motions for summary judgment. The WCC determined that § 39-71-703(5), MCA, properly distinguished workers with actual wage loss from workers without actual wage loss in awarding PPD benefits. Wilkes appeals.
STANDARD OF REVIEW
¶8 The WCC based its decision on its interpretation of constitutional law. We engage in plenary review of questions of constitutional law. Schmill v. Liberty Northwest Ins. Corp., 2003 MT 80, ¶ 9, 315 Mont. 51, ¶ 9, 67 P.3d 290, ¶ 9. We review the WCC’s conclusions of law for correctness. Reesor v. Montana State Fund, 2004 MT 370, ¶ 6, 325 Mont. 1, ¶ 6, 103 P.3d 1019, ¶ 6. We presume statutes to be constitutional. The party challenging the constitutionality of a statute bears the burden of proving beyond a reasonable doubt that the statute is unconstitutional. Reesor, ¶ 6.
DISCUSSION
¶9 Whether the WCC properly determined that the sole reliance on actual wage loss in § 39-71-703, MCA, in determining PPD benefits does not violate Wilkes’s constitutional right to equal protection.
¶ 10 The Legislature previously calculated PPD benefits by considering the injured worker’s age at the time of injury, the injured worker’s education, and the injured worker’s lifting restrictions. Section 39-71-703(a), (b), (d), MCA (1993). The injured worker’s actual wage loss represented just one factor. Section 39-71-703(c), MCA (1993). The Legislature amended the statute in 1995, however, to eliminate the other factors. Mont. S. 375, 54th Leg, Reg. Sess. (March 24,1995). The statute now grants a worker PPD benefits only if the worker can show actual wage loss. Section 39-71-703(l)(a), MCA.
¶11 Wilkes argues that the new statute violates his constitutional right to equal protection. Wilkes asserts that § 39-71-703(l)(a), MCA, creates two similarly situated classes of workers: (1) permanently partially disabled workers with actual wage loss who suffer reduced earning capacity; and (2) permanently partially disabled workers without actual wage loss who nevertheless suffer reduced earning capacity. Wilkes argues that denying PPD benefits to workers who suffer reduced earning capacity, but who do not suffer actual wage loss, impermissibly compensates similarly situated workers differently.
¶12 The U.S. Constitution and the Montana Constitution provide that no person shall be denied equal protection of the laws. U.S. Const, amend XIV; Mont. Const, art. II, § 4. Montana’s equal protection clause ensures that “Montana’s citizens are not subject to arbitrary and discriminatory state action.” Bustell v. AIG Claims Services, Inc., 2004 MT 362, ¶ 19, 324 Mont. 478, ¶ 19, 105 P.3d 286, ¶ 19. We address equal protection claims concerning workers’ compensation statutes using a two part analysis. We determine first whether the State has created a classification that treats differently two or more similarly situated groups. Bustell, ¶ 20. If the claim satisfies the first step, we next determine whether a legitimate governmental purpose rationally relates to the discriminatory classification. Bustell, ¶ 19.
¶13 The WCC relied principally on Powell v. State Compensation Ins. Fund, 2000 MT 321, 302 Mont. 518, 15 P.3d 877, to conclude that Wilkes had failed to demonstrate that § 39-71-703, MCA, created two similarly situated classes of workers. We considered in Powell whether § 39-71-1107, MCA, created a discriminatory classification by compensating injured workers’ caregivers differently depending on whether the caregivers were in-home family members or were professional non-family members. Powell, ¶ 15. We identified two classes at issue in Powell: (1) “family member caregivers who are subject to the limitation on compensation,” and (2) “non-family member caregivers who are not subject to the limitation on compensation.” Powell, ¶ 23.
¶14 We noted that the care that a family member provides may be identical to the care a non-family member provides. We determined, however, that the classes were not similarly situated for several reasons. Powell, ¶ 24. The family member’s care-giving duties included primarily tasks that the family member would have performed before the accident. The family member could provide “passive supervision” that would allow the caregiver to pursue other normal activities simultaneously. And the family member caregiver generally possessed a lower skill level than the professional. Powell, ¶ 24. We deemed these differences to be more important than any similarities between the classes. Powell, ¶ 24.
¶15 The WCC analogized Powell to Wilkes’s case. The WCC noted the numerous attributes that the two classes at issue in this case share. Members of the two classes have suffered work-related injuries, have reached maximum medical improvement, have permanent physical impairment, have suffered lost earning capacity, and rely on § 39-71-703, MCA, as their exclusive remedy. Actual wage loss constitutes the single distinction between the classes. The WCC noted, however, the Legislature’s declaration of public policy for the Workers’ Compensation Act, in which it declared that “the wage-loss benefit should bear a reasonable relationship to actual wages lost as a result of work-related injury or disease.” Section 39-71-105(1), MCA. The WCC determined that actual wage loss constituted “a fundamental distinction, in light of the Legislature’s express public policy that wage loss benefits should bear a reasonable relationship to actual wages lost.”
¶16 Wilkes advances several arguments to support his contention that the WCC incorrectly determined that the two classes were dissimilar. Wilkes first contends that Powell does not support the WCC’s conclusion. Wilkes argues that the Powell classes contained more significant differences than the single distinction at issue here-actual wage loss. Wilkes asserts that Reesor and Snetsinger v. Montana University System, 2004 MT 390, 325 Mont. 148, 104 P.3d 445, constitute better authority.
¶17 We considered in Reesor whether a statute violated claimants’ equal protection rights by providing for the termination of PPD benefits upon the claimant reaching the age at which the claimant became eligible for social security. Reesor, ¶ 7. We determined that the statute created two largely identical classes: “(1) PPD eligible claimants who receive or are eligible to receive social security retirement benefits; and (2) PPD claimants who do not receive and are not eligible to receive social security retirement benefits.” Reesor, ¶ 10. Age constituted the only identifiable distinguishing factor between the two classes. Reesor, ¶ 12. We deemed the claimant’s age to be unrelated to the claimant’s ability to engage in meaningful employment. We concluded that the classes were similarly situated, and we proceeded with the equal protection analysis. Reesor, ¶ 12.
¶18 We considered in Snetsinger whether the Montana University System’s policy that barred same-sex domestic partners from receiving insurance coverage violated employees’ equal protection rights. Snetsinger, ¶ 12. The district court determined that the policy created two dissimilar classes, distinguished by the fact that only one class had dependents, defined as certain children and spouses under the University’s policy. Snetsinger, ¶ 20. We rejected as illusory the district court’s distinction. Snetsinger, ¶ 27. The University’s definition of “spouse” included unmarried opposite-sex partners who had signed an “Affidavit of Common Law Marriage.” Snetsinger, ¶ 22. Montana law does not support this definition of spouse. Snetsinger, ¶¶ 22-23. We concluded that the two classes were similarly situated absent a valid legal definition of spouse supporting the marital status of unmarried opposite-sex partners but not unmarried same-sex partners. Snetsinger, ¶ 27.
¶19 Reesor and Snetsinger do not support Wilkes’s contention that § 39-71-703(l)(a), MCA, creates two similar classes. Wilkes contends that § 39-71-703(l)(a), MCA, like the statute in Reesor, creates two largely identical classes distinguished by a single factor - actual wages. Wilkes oversimplifies our analysis in Reesor. We did not determine in Reesor that the two classes were similarly situated merely because a single factor distinguished them. We determined that, age, the single factor at issue, was also “unrelated to a person’s ability to engage in meaningful employment.” Reesor, ¶ 12. In other words, we concluded that the two classes were similarly situated because age was irrelevant to the statute’s underlying justification.
¶20 Here, however, we agree with the WCC that actual wage loss constitutes “a fundamental distinction ....” The WCC correctly noted the significance of the Legislature’s express public policy that “the wage-loss benefit should bear a reasonable relationship to actual wages lost as a result of work-related injury or disease.” Section 39-71-105(1). The distinguishing factor between the two classes, actual wage loss, plainly relates to the underlying justification of the statute.
¶21 Wilkes also contends that actual wage loss constitutes an illusory distinction in the same manner as the distinction in Snetsinger. Wilkes argues that PPD claimants are otherwise similarly situated with regard to benefits for age, education, and lifting restrictions because those factors independently establish reduced earning capacity. Wilkes asserts that actual wage loss constitutes an illusory distinction because it comprises just one factor in reducing an injured worker’s earning capacity. Wilkes urges that age, education, and lifting restrictions should not be conflated with actual wage loss in order to deny PPD benefits.
¶22 Wilkes’s definition of an illusory distinction does not follow our decision in Snetsinger. We concluded in Snetsinger that marital status was an illusory distinction because it included a definition of spouse not supported by Montana law. The policy’s definition of spouse represented an invalid justification for denying unmarried same-sex couples insurance benefits while allowing them to unmarried opposite-sex couples. Snetsinger, ¶¶ 22-23,27. Montana law, by contrast, clearly supports the use of actual wage loss as the primary factor in awarding PPD benefits. Sections 39-71-703 and 39-71-105, MCA.
¶23 Wilkes suggests that the primary factor in awarding PPD benefits should be reduced earning capacity as demonstrated by age, education, and lifting restrictions. Although attractive, Wilkes cannot demonstrate any valid authority to support this contention. Wilkes refers instead to a repealed version of the workers’ compensation statute for support. Age, education, and lifting restrictions constituted factors to determine PPD benefits pursuant to the pre-1995 version of § 39-71-703, MCA(1993). The Legislature amended § 39-71-703, MCA, to exclude those factors in 1995. Mont. S. 375, 54th Leg., Reg. Sess. (March 24, 1995). Actual wage loss represents the primary factor for determining PPD benefits under the amended statute. Section 39-71-703(l)(a), MCA.
¶24 Wilkes also supports his contention that PPD benefits compensate for reduced earning capacity by citing decisions of this Court that interpreted pre-1995 formulations of workers’ compensation law. E.g. Hale v. Royal Logging, 1999 MT 302, 297 Mont. 165, 990 P.2d 1245; Chagnon v. Telleman Motor Co., 259 Mont. 21, 855 P.2d 1002 (1993); Shaffer v. Midland Empire Packing Co., 127 Mont. 211, 259 P.2d 340 (1953); Meznarich v. Republic Coal Co., 101 Mont. 78, 53 P.2d 82 (1935). Wilkes can point to no authority interpreting the amended version of §39-71-703, MCA, however, that provides that PPD benefits should be determined on the basis of the claimant’s reduced earning capacity.
¶25 We do not dispute that Wilkes’s claims may be valid under pre1995 statutory and decisional law, but the Legislature’s 1995 amendments to § 39-71-703, MCA, have rendered those claims baseless. We agree with the WCC that our reasoning in Powell controls. We determined in Powell that the differences between the two classes at issue were more important than the similarities. Powell, ¶ 24. We held that the equal protection challenge in Powell failed because the two classes were not similarly situated. Powell, ¶ 26. Wilkes correctly asserts several important similarities exist between the two classes in this case. Both classes have suffered work related injuries. Both have reached maximum medical improvement. Both have physical impairment. Both have suffered lost earning capacity. And both rely on § 39-71-703, MCA, as their exclusive remedy.
¶26 A single difference exists, however, in the form of actual wage loss. The WCC correctly concluded that this difference was fundamental, in light of the Legislature’s declaration that “the wage-loss benefit should bear a reasonable relationship to actual wages lost as a result of work-related injury or disease.” Section 39-70-105(1), MCA. Actual wage loss sufficiently distinguishes the two putative classes.
¶27 Wilkes also advances a thoughtful policy argument demonstrating that age, education, and lifting restrictions constitute more equitable factors to determine PPD benefits. Wilkes’s policy argument, however, does not demonstrate that the two classes created by § 39-71-703, MCA, are similarly situated pursuant to Montana law.
¶28 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER, LEAPHART, NELSON, COTTER and RICE concur.
|
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CHIEF JUSTICE GRAY
delivered the Opinion of the Court.
¶1 A jury found Chad Meeks guilty of theft by common scheme, and the Fourth Judicial District Court, Missoula County, entered judgment against him. Meeks appeals and we affirm.
¶2 The issue is whether the District Court erred in denying Meeks’ motion for directed verdict on grounds the State of Montana failed to present evidence that he exerted or obtained unauthorized control over property of another.
BACKGROUND
¶3 The State of Montana charged Meeks with felony theft by common scheme in violation of §§ 45-2-101(7) and 45-6-301, MCA (2003). At trial, a police detective for the City of Missoula and loss prevention employees from three Missoula “big box” stores testified Meeks had been involved in three different methods of stealing property from the stores. In the first method, Meeks would walk into a store, load a shopping cart with merchandise, and then take it to the return counter and “return” the items without a receipt, usually in exchange for a store gift card. The second method involved price-switching by Meeks-taking bar code stickers from less expensive items and putting them onto more expensive items, then purchasing the more expensive items at the lesser price. In the third method, Meeks would bring a receipt into a store, pick up the items listed on that receipt from store shelves, and then take the items to the retrun counter for a cash refund. Using videotape evidence and testimony by the store loss prevention employees, the State’s witnesses identified specific incidents in which Meeks took control of more than $1,000 in merchandise, store gift cards and cash refunds.
¶4 Meeks moved for a directed verdict following the State’s presentation of its case at trial, but the District Court denied his motion. Meeks did not put on any witnesses or offer other evidence. His counsel argued to the jury that the State had failed to prove all of the elements of the offense of theft as charged. The jury found Meeks guilty, and he appeals.
STANDARD OF REVIEW
¶5 We recently clarified that, because it involves analysis and application of the law to the facts, we will review the denial of a motion for a directed verdict de novo. See State v. Swann, 2007 MT 126, ¶ 19, 337 Mont. 326, ¶ 19, 160 P.3d 511, ¶ 19. A directed verdict of acquittal should be granted in a criminal case only when no rational trier of fact, viewing the evidence in the light most favorable to the prosecution, could find the defendant guilty beyond a reasonable doubt. Swann, ¶ 16 (citations omitted).
DISCUSSION
¶6 Di<I the District Court err in denying Meeks’ motion for directed verdict on grounds that the State of Montana failed to present evidence that he exerted or obtained unauthorized control over property of another?
¶7 Section 45-6-301, MCA (2003), sets forth the elements of some of Montana’s theft offenses. The statute contains seven subsections, each of which contains the basic premise of a theft offense with language such as obtaining or exerting unauthorized control over property of the owner, obtaining by threat or deception control over property of the owner, obtaining control over stolen property knowing it to have been stolen by another, and the like. See e.g. §§ 45-6-301(1), (2) and (3), MCA (2003). In turn, each of the subsections contains sub-subsections, none of which are at issue here. Other statutes define other theft offenses and related offenses.
¶8 Section 45-6-301(l)(a), MCA (2003), under which Meeks was prosecuted, provides that a person “commits the offense of theft when the person purposely or knowingly obtains or exerts unauthorized control over property of the owner ... and has the purpose of depriving the owner of the property[.]” Meeks contends that, while his actions may have constituted a different offense, they did not constitute the theft charged because he possessed the stores’ property only as authorized by store personnel. Consequently, according to Meeks, he could not be convicted under § 45-6-301(l)(a), MCA (2003), as a matter of law.
¶9 A county attorney has broad discretion in determining when to prosecute a case and what crime will be charged. When the facts would support more than one charge, the crime to be charged is a matter of prosecutorial discretion. State v. Smith, 2004 MT 191, ¶ 19, 322 Mont. 206, ¶ 19, 95 P.3d 137, ¶ 19 (citations omitted). Moreover, and despite Meeks’ claims to the contrary, we conclude the charge against him reflects the intent behind the statute. The Criminal Law Commission comments to § 45-6-301, MCA, which was enacted as § 94-6-302, RCM (1947), include the following:
While the method by which unauthorized control is obtained or exerted is immaterial in subsection (1), and probably, in conjunction with one of the subdivisions (a), (b), or (c), would cover all forms of theft the commission felt that such an approach might be too concise, and might create problems of application, in view of the large body of statutory material and the large number of offenses it is intended to replace. Therefore, subsections (2) and (3) were added, to cover the specific offenses of theft by threat or deceit and receipt of stolen property, although the commission intends that all forms of theft could be charged and proved under subsection (1).
(Emphasis supplied.)
¶10 Meeks argued in his motion for directed verdict of acquittal-and argues on appeal-that he was not guilty of the charged offense as a matter of law because the State presented no evidence of his “unauthorized” control over the property at issue. The argument is based on the existence of store procedures for returns of merchandise in exchange for a store gift card and the like, and that store employees authorized his obtaining control over the property. At the bottom line, Meeks contends the State should have charged him with theft by deception under § 46-5-301(2), MCA (2003), or deceptive practices pursuant to § 45-6-317, MCA (2003). We disagree.
¶11 With regard to Meeks’ argument that the State presented no evidence of “unauthorized control,” the record reflects otherwise. A loss prevention associate for Walmart testified that Meeks took items off store shelves, put them into a cart, walked up to the customer service desk and asked for a refund for the items he had not paid for. The loss prevention associate testified Meeks was not authorized to do that. An assets protection associate at a second Missoula Walmart store testified about-and showed the jury store surveillance videotapes of-Meeks making purchases of various items with price stickers switched from lower-priced items. An assets protection manager for Target showed the jury a store videotape which showed Meeks selecting merchandise off store shelves from a receipt which he had brought into the store, and then taking the merchandise to the front of the store, where he told the cashier he had already purchased the merchandise and was returning it. The assets protection manager testified Target had not authorized Meeks to do that.
¶12 Viewing the evidence in the light most favorable to the prosecution, a rational trier of fact could have found Meeks guilty of the charged theft beyond a reasonable doubt. We conclude, therefore, the District Court did not err in denying Meeks’ motion for a directed verdict of acquittal as a matter of law.
¶13 Affirmed.
JUSTICES COTTER, LEAPHART, NELSON and MORRIS concur.
|
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 Daniel Shoemaker and Jane Shoemaker (the Shoemakers) appeal from the District Court’s order granting summary judgment to Meadow Lake Estates Homeowners Association (the Association). We affirm.
¶2 The Shoemakers present the following issues for review:
¶3 1. Whether the District Court properly determined that the Shoemakers had waived the affirmative defense of statute of limitations.
¶4 2. Whether the District Court improperly resolved a genuine issue of material fact in granting the Association’s motion for summary judgment.
FACTUAL AND PROCEDURAL BACKGROUND
¶5 Meadow Lake Estates is a residential development located in Ravalli County. Developers of the subdivision intended to preserve the “natural beauty, primitive characteristics, and seclusion” of the property by filing a Deed of Restriction with the Ravalli County Clerk and Recorder in August 1979. The Deed of Restriction set forth a variety of land use limitations on property owners within the subdivision, including the prohibition of commercial activities not “compatible with the residential nature and characteristics of the area.” The Deed of Restriction reserved easements on all existing roads within the subdivision for the “scenic views and enjoyment” of the property and for the “reasonable general use” by all subdivision property owners to access public lands.
¶6 The Shoemakers bought three tracts of land in the Meadow Lake Estates subdivision in 1984. The Jack Creek access road encumbered the Shoemakers’ property at the time of their purchase. The Shoemakers promptly erected a gate across the road where it intersected with their property. When locked, the gate blocked vehicular access to public lands on the other side of the Shoemakers’ tract. The Association demanded in 1987 that the Shoemakers unlock or remove the gate because it was interfering with the property owners’ access to public lands. The Shoemakers refused. The Shoemakers warned the Association that it would have to initiate legal action to resolve the issue surrounding the locked gate. The Association took no immediate action.
¶7 The Shoemakers then launched an outfitting business from their property in 1988. The business operated under an outfitter license and provided guided hunting trips in eastern Montana. The business also occasionally guided hunters on the public lands near the Shoemakers’ property. The Shoemakers ceased operations after several years of business.
¶8 The Association filed a complaint against the Shoemakers in November 2000. The Association accused the Shoemakers of violating provisions of the Deed of Restriction by interfering with the easement over the Jack Creek access road and by operating an outfitting business on their property. The Association sought a permanent injunction ordering the Shoemakers to remove all obstructions from the Jack Creek access road and prohibiting the Shoemakers from operating the outfitting business on their property. At the same time, the Association filed an application for a temporary injunction and a request to set a show cause hearing. The District Court issued an order on November 15, 2000, directing the Shoemakers to appear on December 4,2000, to show cause why a preliminary injunction should not be granted.
¶9 The Shoemakers filed their answer to the Association’s complaint on January 31, 2001. The Shoemakers’ answer asserted general denials of the allegations in the Association’s complaint, including a denial that an express easement encumbered their property for the benefit of Association members. They admitted that “a gate exists on their driveway and that the gate is sometimes locked.” (Emphasis added.) The Shoemakers alleged as their first affirmative defense that the Association had waived or abandoned any easement due to the fact that the Association had not used the Jack Creek access road for over seventeen years. The second and third affirmative defenses asserted that, in light of other available forest service access roads in the subdivision, the easement encumbering their land was unnecessary and moot. Their final affirmative defense asserted that, if the easement exists, parking vehicles on the section of Jack Creek access road that sits on the Shoemakers’ property is outside the scope of the easement.
¶10 The court held the show cause hearing on February 5,2001. Larry Wilkins (Wilkins) testified on behalf of the Association. The Shoemakers did not appear, although their counsel cross-examined the Association’s witness and presented arguments. The court granted a preliminary injunction directing the Shoemakers to keep open the gate across the Jack Creek access road and to remove all “no trespassing” signs during the pendency of the action.
¶11 The court’s scheduling order of March 9,2001, directed the parties to file all pretrial motions, “including motions in limine and motions for summary judgment” on or before July 20, 2001. By stipulation of the parties, the court later extended the deadline for filing motions to October 28, 2001.
¶12 The Association filed a motion for summary judgment. The Association sought summary judgment that it held a valid easement across the Jack Creek access road and that the Shoemakers could not sustain their abandonment defense as a matter of law. The Association attached to its motion the deposition of Daniel Shoemaker, taken August 21,2001, the deposition of Wilkins, also taken August 21,2001, and the Shoemakers’ Response to Plaintiffs First Set of Interrogatories and Requests for Production of Documents.
¶13 Wilkins testified that he continued to use the road after the Shoemakers lived there. Wilkins explained that he would get around the Shoemakers’ locked gate by walking around the section of fence or climbing over the gate. “I used it when they weren’t there and I’ve used it since they lived there, along with other people.” He stated that “[t]here’s been periods of time when the gate has stood wide open for days, weeks at a time, but it’s always locked during hunting season.” He stated that he used to drive up the road when the forest service land was open to vehicles, but that when the forest service became closed to vehicles, he would bike, ski, or ride his horse up to the forest service land, using the Jack Creek access road through the Shoemakers’ property to get there. He stated that, as a member of the Association’s Board, he knows that the money from the Association dues goes to the road grader and that he saw the Jack Creek access road over the Shoemakers’ property graded at least once.
¶14 Daniel Shoemaker asserted in his deposition that non-use extinguished the easement. Yet Shoemaker declared that he “caught [Wilkins] twice in the last couple years,” riding his bike on the Jack Creek access road, that he gave Mr. Trautman, a lot owner, permission to retrieve an elk that he shot on public land, and that he saw and confronted some children of Dwayne Allen, another lot owner, who were using the road, presumably while lost. He also stated that he gave a key to his cousin, Mike Uffelman, a lot owner, to access the road.
¶15 Shoemaker claimed that he had confronted people six or seven times about using the road since owning the property and admitted that he may have been carrying a gun during those confrontations. When asked if the gate was locked 24 hours a day, Daniel Shoemaker replied “yes,” that it was locked 99.9% of the time. He also stated that, since March of 1997, he has worked full time in Arizona and comes back to his Montana property on vacations, maybe four to six weeks out of the year. He admitted to paying Homeowners Association dues that, in part, go to road maintenance and that a road grader had graded the road on his property in the past year.
¶16 The Shoemakers filed their own motion for summary judgment on November 6,2001. For the first time, the Shoemakers claimed that the eight-year statute of limitations on contract claims barred the Association’s action with respect to the outfitting business. Also for the first time, the Shoemakers claimed that they had extinguished any easement across the Jack Creek access road by adversely possessing the easement for the five-year statutory period. The Shoemakers claimed that the Association should be barred from asserting its interest in the easement because it had failed to raise an objection to the Shoemakers’ adverse use within five years of discovering the Shoemakers’ locked gate.
¶17 The Shoemakers appended the affidavit of Daniel Shoemaker, subscribed and sworn on November 5,2001-two-and-one-half months after his deposition-to their motion for summary judgment. Shoemaker alleged that the gate had remained locked since the time of installation in 1984 other than for permitting his family to enter and exit the property. Shoemaker further alleged that no one within the subdivision ever had asked him or his wife for permission to use the roadway: “Any use of the roadway claimed by Mr. Wilkins, or others, has been without permission or consent. To the best of our knowledge, no one other than my family and guests has used the roadway through my property.”
¶18 Shoemaker mentioned two exceptions to this exclusion. The first exception involved some deer hunters, non-members of the subdivision, to whom he denied permission to go past his gate. The second exception was a real estate agent to whom he had given permission and a key to unlock the gate to show land beyond Shoemakers’ property to clients. Shoemaker also admitted to leaving for Arizona on extended trips throughout the year.
¶19 The Association objected to the Shoemakers’ statute of limitations claim on the basis that the Shoemakers had waived the claim by failing to raise it as an affirmative defense. The Association likewise objected to the Shoemakers’ adverse possession claim on the grounds that the Shoemakers had never raised the claim in their answer as an affirmative defense, through a counterclaim, or otherwise.
¶20 The District Court held a hearing on February 7, 2002. Daniel Shoemaker testified that he had locked the gate since he bought his property in 1984 until the court granted the temporary injunction requiring that he open it. He claimed that the easement providing Association members access to the neighboring Forest Service property had been eliminated before his purchase. Shoemaker stated that he saw Wilkins one or two times, a man during hunting season who had been lost, and Mr. Daniels’s son and companion all using the access road at some point after he purchased the property.
¶21 The court determined that no justiciable controversy existed as the Shoemakers had ceased outfitting operations long ago and had no present plans to reopen it and thus declined to rule on this issue. The court determined that the Shoemakers had waived their statute of limitations defense on the outfitting business by failing to raise it as an affirmative defense in their answer. The court granted the Association’s motion for summary judgment, however, regarding the easement along the Jack Creek access road. The court determined that the Jack Creek access road constituted a valid easement encumbering the Shoemakers’ property. The court further determined that the Shoemakers had failed to raise a genuine issue of material fact to support their claim of having extinguished through adverse possession the Association’s easement over the Jack Creek access road.
¶22 The court first noted that the Shoemakers had failed to raise the defense of adverse possession in their responsive pleading or in any of their discovery answers. The court then noted that the party seeking to establish an easement by prescription has the burden to prove each element of prescriptive right by clear and convincing evidence, citing Tanner v. Dream Island, Inc., 275 Mont. 414, 424, 913 P.2d 641, 648 (1996) (emphasis added). The court stated,
[t]he Shoemakers have failed to plead each of the elements of adverse possession, and their attempt to prove those elements consists solely of this statement in their Motion for Summary Judgment: “[t]he locked gate at the entry way to [the Shoemakers’] property was ‘open, notorious, exclusive, adverse, continuous and uninterrupted’ since its construction and installation in the summer of 1985.”
(Emphasis added.)
¶23 The court focused on the “exclusive” and “uninterrupted” elements of adverse possession because the evidence presented on summary judgment demonstrated that certain property owners had continued to use the easement across the Shoemakers’ property. The court identified the contested issue between the parties as frequency of use rather than the fact of such use. The court cited the testimony of Wilkins at the preliminary injunction hearing regarding his continued use of the easement. The court also relied upon Wilkins’s uncontroverted testimony that the Association had maintained the development’s roads over the years. Daniel Shoemaker conceded in his deposition that Association members had used the easement, without his permission and that his Association dues had been used on at least one occasion to maintain the Jack Creek access road. The court concluded that no genuine issue of fact existed in support of their extinguishment claim because their adverse use was not exclusive or uninterrupted. The Shoemakers appeal.
STANDARD OF REVIEW
¶24 We review de novo a district court’s decision to grant summary judgment under the standard set forth in M. R. Civ. P. 56(c). Gliko v. Permann, 2006 MT 30, ¶ 12, 331 Mont. 112, ¶ 12, 130 P.3d 155, ¶ 12. In evaluating cross motions for summary judgment, this Court must evaluate each party's motion on its own merits. Hajenga v. Schwein, 2007 MT 80, ¶ 19, 336 Mont. 507, ¶ 19, 155 P.3d 1241, ¶ 19. Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law.” M. R. Civ. P. 56(c).
¶25 The party moving for summary judgment must establish the absence of any genuine issue of material fact and entitlement to judgment as a matter of law. Gliko, ¶ 12. Once the moving party has met its burden, the party opposing summary judgment must present substantial evidence essential to one or more elements of its case to raise a genuine issue of material fact. Fielder v. Board of County Commissioners, 2007 MT 118, ¶ 12, 337 Mont. 256, ¶ 12, 162 P.3d 67, ¶ 12. Summary judgment is inappropriate where, based on the record, reasonable jurors could reach different conclusions as to a particular material fact. LaTray v. City of Havre, 2000 MT 119, ¶ 33, 299 Mont. 449, ¶ 33, 999 P.2d 1010, ¶ 33; Scott v. Henrich, 1998 MT 118 , ¶ 22, 288 Mont. 489, ¶ 22, 958 P.2d 709, ¶ 22.
DISCUSSION
Whether the District Court properly determined that the Shoemakers waived the affirmative defense of statute of limitations.
¶26 The Shoemakers do not dispute the underlying facts concerning the statute of limitations issue. They argue that the District Court incorrectly determined that they had waived the statute of limitations defense under M. R. Civ. P. 8(c) by failing to plead it as an affirmative defense in an answer to the Association’s complaint.
¶27 The Shoemakers urge this Court to adopt a more liberal reading of M. R. Civ. P. 8(c), based on the application of Fed. R. Civ. P. 8(c), in Rivera v. Anaya, 726 F.2d 564, 566 (9th Cir. 1984) (allowing a defendant to raise a statute of limitations defense for the first time on motion for summary judgment when the plaintiff failed to demonstrate prejudice). The Shoemakers argue that the Association suffered no prejudice by the untimely assertion of the affirmative defense and, thus, the defense should have been allowed under federal standards.
¶28 The Montana Rules of Civil Procedure govern all civil suits in Montana district courts. We apply the Montana Rules of Civil Procedure as written. M. R. Civ. P. 1; Busch v. Atkinson, 278 Mont. 478, 483, 925 P.2d 874, 877 (1996). The plain language of M. R. Civ. P. 8(c) requires a party affirmatively to set forth the statute of limitations defense by answer. M. R. Civ. P. 8(c)’s requirement that an affirmative defense be pled by answer serves the same principles of fairness and notice that require a plaintiff to set forth the basis of a claim in a complaint. Brown v. Ehlert, 255 Mont. 140, 146, 841 P.2d 510, 514 (1992). The affirmative pleading avoids surprise and eliminates the sweeping ambiguities of a general denial. Rambur v. Diehl Lumber Company, 144 Mont. 84, 89, 394 P.2d 745, 748 (1964).
¶29 Nothing in M. R. Civ. P. 8(c) suggests that an affirmative defense may be raised later in the proceedings upon the showing of a lack of prejudice to the opposing party. This Court consistently has ruled against the circumvention of M. R. Civ. P 8(c)’s requirement that an affirmative defense be pled by answer. We long have held that a party waives an affirmative defense if not raised by answer. Brown, 255 Mont. at 146, 841 P.2d at 514; Chandler v. Madsen, 197 Mont. 234, 241, 642 P.2d 1028, 1032 (1982); Estabrook v. Baden, 284 Mont. 419, 422, 943 P.2d 1334, 1336-37 (1997).
¶30 The Shoemakers failed to plead the statute of limitations as affirmative defenses in their answer. The Shoemakers raised the statute of limitations defenses for the first time in an untimely motion for summary judgment that they filed almost a year after their answer to the Association’s complaint. The Shoemakers first cited the eight-year statute of limitations for contracts, barring a claim for breach of the Deed of Restriction, and they also cited the five-year statute of limitations for quieting title against an adverse possessor, barring a claim for enforcement of the Jack Creek access road easement by reservation. The Shoemakers made no attempt, however, to amend their answer to include these defenses in the months leading up to their motion for summary judgment.
¶31 The District Court’s ruling denying their summary judgment claim prompted the Shoemakers to seek leave of court to amend their answer. The amendment came too late as more than three years had passed between the start of the litigation and the Shoemakers’ motion for an amended answer. The Shoemakers’ untimely presentation of the statute of limitations defense cuts against M. R. Civ. P. 8(c)’s plain language and its purpose to provide notice of the specific defenses not raised by general denials. Brown, 255 Mont. at 146, 841 P.2d at 514. We agree with the District Court that the Shoemakers waived the statute of limitations defenses by failing to assert the defenses by answer. Brown, 255 Mont. at 146, 841 P.2d at 514.
Whether the District Court improperly resolved a genuine issue of material fact in granting the Association’s motion for summary judgment.
¶32 Our analysis begins with the fact that the Association possesses a valid recorded easement along the Jack Creek access road. The Deed of Restriction filed by the Association reserved easements on all existing roads within the subdivision, including the Jack Creek access road, for all property owners to access public lands. Furthermore, the Shoemakers do not challenge the District Court’s determination that a valid Deed of Restriction created an easement by reservation.
¶33 The Association provided Wilkins’s and Daniel Shoemaker’s deposition testimony to establish that the Shoemakers’ gate interfered with the Association members’ enjoyment of the easement. The Shoemakers’ attempts to eliminate use of roadway by locking the gate and intimidating Jack Creek access road users directly violated the Deed of Restriction.
¶34 All subdivision lot owners in Mason v. Garrison similarly enjoyed the use of a communal dock through an easement until the servient tenement lot owner began to impede the path to the dock by putting up fencing, building gardens, and letting his dogs scare away other dock users. Mason, 2000 MT 78, 299 Mont. 142, 998 P.2d 531. Although we stated that the servient lot owner may not be excluded from reasonable use of his property by the other lot owners, we concluded that the servient lot owner may not put his property to a use' that materially interferes with the rights of the dominant estates. Mason, ¶ 49.
¶35 Similarly, the Shoemakers’ placement of a gate over the roadway may have been reasonable for purposes of excluding neighboring horses and livestock from their property. Their decision to lock the gate, to approach Association members while wearing a sidearm, and to call the Sheriff when Association members used the easement, however, materially interfered with the Association members’ enjoyment of their easement. This material interference violated the Deed of Restriction. Therefore, the Association met its burden on summary judgment by demonstrating no genuine issue of material fact as to (1) creation of the easement, and (2) the Shoemakers’ interference with the easement.
¶36 The Shoemakers’ defense presents a twist on the usual easement analysis as they seek to extinguish through adverse possession a recorded easement- the Jack Creek access road-rather than establish an easement through adverse possession. The owner of the servient tenement extinguishes an easement through adverse use in the same manner as acquisition of title by adverse possession and acquisition of an easement by prescription: open, notorious, exclusive, adverse, continuous and uninterrupted use for the five-year statutory period. Pearson v. Virginia City Ranches Ass’n, 2000 MT 12, ¶ 46, 298 Mont. 52, ¶ 46, 993 P.2d 688, ¶ 46.
¶37 The District Court applied the incorrect standard of proof. At trial, the party asserting a claim for adverse possession must prove each element by clear and convincing evidence. Wareing v. Schreckendgust, 280 Mont. 196, 206, 930 P.2d 37, 43 (1996). Upon a motion for summary judgment, the moving party, if asserting easement by prescription or adverse possession, must establish by clear and convincing evidence the elements of prescription in order to be entitled to judgment as a matter of law. See Hitshew v. Butte / Silver Bow County, 1999 MT 26, ¶¶ 16-20, 293 Mont. 212, ¶¶ 16-20, 974 P.2d 650, ¶¶ 16-20; Unruh v. Tash, 271 Mont. 246, 254, 896 P.2d 433, 438 (1995).
¶38 The non-moving party, however, need only submit evidence of sufficient facts to support a genuine issue of material fact to preclude summary judgment in favor of the movant. M. R. Civ. P. 56. The nonmovant must present evidence of some probative force, rather than merely rely on the defense pled. Conboy v. State, 214 Mont. 492, 500, 693 P.2d 547, 551 (1985). The Shoemakers defended by alleging that they had extinguished the Association’s easement through adverse possession. As the non-movant, the Shoemakers must present facts supporting, rather than negating, the elements of adverse possession.
¶39 The Shoemakers do not contest the District Court’s determination on summary judgment that the Association had established the existence of a valid recorded easement and that the easement encumbered their land. They assert that the District Court improperly granted summary judgment in favor of the Association because a genuine issue of material fact exists as to their adverse possession defense. This assertion falls short because the Shoemakers failed to present sufficient evidence to support each element of their extinguishment by adverse possession claim. In fact, they presented evidence that negated their claim.
¶40 Like the District Court, we focus our analysis here on the “continuous” and “uninterrupted” elements. Continuous and uninterrupted denotes use that has not been interrupted by an act of the owner of the land or by the voluntary abandonment by the party claiming the right. Brimstone Min., Inc. v Glaus, 2003 MT 236, ¶ 23, 317 Mont. 236, ¶ 23, 77 P.3d 175, ¶ 23. In Brimstone, we held that acts of adverse possession had not extinguished an already existing easement when the servient estate owner put up a locked gate and granted permission to a few users because “permissive use after a hostile act is sufficiently inconsistent to extinguish an easement.” Brimstone, ¶¶ 36, 41. “Continuous use” does not mean constant use; rather, if the claimant used the property in dispute whenever he desired, without interference by the owner of the servient estate, the use was continuous and uninterrupted. Cook v. Hartman, 2003 MT 251, ¶ 29, 317 Mont. 343, ¶ 29, 77 P.3d 231, ¶ 29, quoting Confederated Salish & Kootenai Tribes v. Vulles, 437 F.2d 177, 180 (9th Cir. 1971).
¶41 The record is replete with admissions from Daniel Shoemaker that Association members used the easement and with testimony from Wilkins that he and others continued to use the Jack Creek access road during the years that the Shoemakers claimed to have blocked access. This use by Association members interrupts the Shoemakers’ attempted adverse possession of the easement.
¶42 The Shoemakers admitted in their answer that their gate was only “sometimes” locked. Wilkins testified in a deposition that the Shoemakers’ gate had been “left wide open for days, weeks at a time” and that he and at least ten other Association members continued to use the Jack Creek access road. The Shoemakers conceded that they left Montana for a good part of the year and, therefore, would not have known if the easement was used while they were out of state. Wilkins further testified that the Association regularly maintained and graded the road using money collected from Association dues. The Shoemakers even conceded that the Association had graded the road. The Shoemakers’ inconsistently locked gate, the uncertainty in their ability to enforce their claim of right while out of state, and the Association’s payment for road grading constitute sufficient inconsistency by the Shoemakers, the party asserting the adverse possession right, similar to that present in Brimstone.
¶43 Like Brimstone, the Shoemakers put up a gate, sometimes locked it, and granted permission to a few users: a real estate agent, an elk hunter, and their cousin. We similarly conclude here that the Shoemakers’ inconsistent actions failed to extinguish an easement. Our review of the record reveals, however, sufficient evidence to determine that the District Court reached the right result that the Shoemakers failed to establish a prima facie case for uninterrupted possession in granting summary judgment to the Association even if it employed the wrong standard. State v. Rensvold, 2006 MT 146, ¶ 34, 332 Mont. 392, ¶ 34, 139 P.3d 154, ¶ 34.
¶44 The Shoemakers contend that they adequately challenged Wilkins’s testimony through Daniel Shoemaker’s deposition and other affidavits to the point of raising a genuine issue of material fact. The record highlights, however, the Shoemakers’ ever-evolving defense. The Shoemakers claimed in their answer to have locked the gate “sometimes.” The Shoemakers’ answer asserted abandonment and waiver as their affirmative defense. These claims contradict Daniel Shoemaker’s deposition testimony, affidavit declarations, and hearing testimony. In his deposition, Shoemaker asserted non-use as his affirmative defense. In his affidavit, he asserted adverse possession as his affirmative defense and, in his hearing testimony, he continued to assert adverse possession through his locking of the gate.
¶45 A party may not avoid summary judgment by creating factual inconsistencies in the record. “It is the general rule that allegations, statements, or admissions contained in a pleading are conclusive as against the pleader, and are admissible as against the party making them in the litigation as proof of the facts which they admit.” Anderson v. Mace, 99 Mont. 421, 427-28, 45 P.2d 771, 73-74 (1935). We take the admissions made in the Shoemakers’ answer as proof.
¶46 Similarly, “[w]hen statements in an affidavit submitted pursuant to Rule 56(e), M.R.Civ.P., are repudiated in a later deposition, the affidavit statements do not raise a genuine issue of material fact.” Herron v. Columbus Hosp., 284 Mont. 190, 195, 943 P.2d 1272, 1275 (1997). District courts may grant summary judgment where a party’s sudden and unexplained revision of testimony creates an issue of fact where none existed before. Stott v. Fox, 246 Mont. 301, 309, 805 P.2d 1305, 1310 (1990); Kaseta v. N. Western Agency of Gr. Falls, 252 Mont. 135, 140, 827 P.2d 804, 807 (1992). Therefore, we must consider the unexplained inconsistencies between the answer, deposition testimony, affidavit and hearing testimony of Daniel Shoemaker.
¶47 The Shoemakers contradicted themselves throughout the litigation when asked how many Association members they had seen using the easement across their property. The Shoemakers’ answer declared that no one had used the easement in the 17 years they had owned the property. Daniel Shoemaker admitted in his deposition that he saw Wilkins using it two times and that he could not say whether Wilkins otherwise had used the easement. Shoemaker estimated a total of seven users in 17 years. His affidavit named only two exceptions to the assertion that no one used the easement in 17 years: a deer hunter who was denied permission and the real estate agent who was granted permission. Finally, in his testimony at the summary judgment hearing, he claimed that he saw Wilkins use the easement twice, that he caught a lost hunter on the easement once, and that he had seen Dwayne Allen’s son using it once. We consider these contradictions in light of Wilkins’s consistent statements at the show cause hearing and during his deposition.
¶48 Daniel Shoemaker’s statements regarding how often the gate was locked further evidence the Shoemakers’ evolving defense. For example, the Shoemakers’ answer included the admission that the gate was “sometimes” locked-a position consistent with Wilkins’s testimony. Daniel Shoemaker’s deposition, affidavit and hearing testimony declared, however, that the gate had been locked always, except for his family entering and leaving.
¶49 The parties do not provide conflicting accounts. We instead have one party making admissions in its answer that conflict with statements provided in a deposition that, in turn, conflict with statements in an affidavit and testimony during a hearing. This scenario does not create a genuine issue of material fact between the parties; it highlights the evolving nature of the Shoemakers’ defense. The Shoemakers’ shifting accounts fail to refute the Association’s evidence to the point of creating a genuine issue of material fact regarding their adverse possession claim that could be resolved only at trial. These contradictory declarations would leave a jury no reasonable basis on which to find adverse possession. LaTray, ¶ 33; Scott, ¶ 22. The Shoemakers presented no credible evidence with respect to the continuous and uninterrupted elements of adverse possession that could allow a jury to determine that the Shoemakers had extinguished the Jack Creek access road easement by adverse possession. LaTray, ¶ 33; Scott, ¶ 22.
¶50 Once the prima facie case of adverse possession has been made, the presumption shifts in favor of the adverse user’s title and the burden shifts to the other party to show that such use was permissive rather than adverse. Warnack v. Coneen Family Trust, 266 Mont. 203, 216, 879 P.2d 715, 723 (1994). The presumption of adverse use never sprang into existence here, however, because the Shoemakers failed to establish a prima facie case in support of all of the elements. Warnack, 266 Mont. at 216-17, 879 P.2d at 724. We agree with the District Court that the fact of some use, regardless of frequency, defeats the continuous and uninterrupted elements of the Shoemakers’ defense of extinguishment by adverse possession. This deficiency entitles the Association to judgment as a matter of law. Osterman v. Sears, Roebuck & Co., 2003 MT 327, ¶ 34, 318 Mont. 342, ¶ 34, 80 P.3d 435, ¶ 34.
¶51 We affirm the District Court’s order.
CHIEF JUSTICE GRAY, JUSTICES NELSON, LEAPHART and COTTER concur.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Appellant Public Lands Access Association, Inc. (Association) appeals an order of the Ninth Judicial District, Teton County, dismissing with prejudice its complaint for declaratory and injunctive relief against Appellee Roger Jones (Jones). We reverse the District Court and remand for further proceedings.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 Jones is the owner of real property in Teton County, Montana. The Association is a non-profit organization which promotes access to public lands in Montana. The Sun River Slope Canal Road (Canal Road) is located on real property owned by Jones in Teton County. The Canal Road was built between 1917 and 1919 by the authority of the Secretary of the Interior under the Reclamation Act of 1902,43 U.S.C. § 371. The United States of America Bureau of Reclamation (Bureau) has had an express, nonexclusive easement over the Canal Road for irrigation and maintenance purposes since it was constructed.
¶3 According to the Association, Canal Road has been used by members of the public for many years in order to gain access to public lands. Jones has blocked access to public lands via the Canal Road by placing a chain and locked gates across it. On October 10, 2003, the Association filed suit against Jones in the Ninth Judicial District, Teton County, seeking a declaratory judgment that a public prescriptive easement was established by the Association’s members and the general public over the Canal Road. The complaint also sought an injunction against Jones to prevent him from impeding or otherwise interfering with use of the Canal Road.
¶4 After its complaint was filed, the Association continued to investigate whether other parties had interests in the portion of the Canal Road over which the Association claimed a public prescriptive easement. The Association discovered that the Greenfield Irrigation District (GID) possessed an easement in the Canal Road. Subsequently, the Association and the GID entered into an agreement stipulating that the Association’s easement claim was not in conflict with any interests held by the GID in the Canal Road. In late 2005 the Association discovered the existence of the Bureau’s easement over the Canal Road. On December 6, 2005, the Association joined the Bureau as a party defendant on the assumption that the Bureau “may have some right, title, or interest in the Sun River Slope Canal Road adverse to the [Association] and the public ....”
¶5 On March 17, 2006, the Association and the Bureau entered into a stipulated agreement (Stipulation) which resulted in the Bureau’s dismissal from the suit. In the Stipulation, the Association and the Bureau both acknowledged that “[t]he Bureau owns a nonexclusive easement or right-of-way for the Sun River Slope Canal and its related maintenance road ....” However, the Bureau also acknowledged it had never blocked public use of the Canal Road and further that “[a]t no time since completion of construction of the ... Sim River Slope Canal Road has a member of the public or the underlying private landowner(s) used the Sun River Canal Slope Road in a manner that is incompatible with or interferes with the use and enjoyment of the easement interests held by the Bureau.” In agreeing to dismiss the Bureau, both parties acknowledged that “this Stipulation, as stated herein, shall not be construed or used as any admission regarding the status, character, or nature, or use of the roadway, nor shall this stipulation be used to assert the validity or invalidity of said roadways as a public road, county road, or public right-of-way, where said road crosses the Bureau’s land and premises.” Moreover, the parties expressly agreed that nothing in the Stipulation “shall be deemed to impact the current rights of the Bureau or the Greenfields Irrigation District from prohibiting use of said roadway by third parties should said use interfere or become inconsistent with the Bureau’s or the Greenfields Irrigation District’s use of the Sun River Slope Canal Road, or to impose any obligations that the Bureau maintain said roadway for public use.”
¶6 After the Bureau was dismissed from the suit, Jones moved to dismiss the Association’s complaint under M. R. Civ. P. 12(b)(1), (2), and (6). Jones advanced several arguments in support of his motion. First, Jones asserted the Association’s claim for a public prescriptive easement raised a dispute in title between it and the United States, that federal courts have exclusive jurisdiction over such title disputes pursuant to the Federal Quiet Title Act (FQTA), 28 U.S.C. § 2409a, and that therefore the Association’s complaint could not proceed in state District Court. Additionally, Jones argued the exclusive jurisdiction of the federal courts over the Association’s complaint meant that the District Court lacked subject-matter jurisdiction and personal jurisdiction over those claims as well. Finally, Jones argued that the Association’s suit should be dismissed for failing to be commenced within twelve years of the date its claim accrued pursuant to 28 U.S.C. § 2409a(g).
¶7 The District Court granted Jones’s motion and dismissed the Association’s suit with prejudice. The District Court concluded that the Association’s complaint “clearly challenges an interest in real property owned by the United States[,]” and thus must be dismissed for lack of subject-matter jurisdiction because “[t]he exclusive means to challenge an interest of the United States in real property is through the Federal Quiet Title Act, 28 U.S.C. § 2409a. Block v. North Dakota (1983), 461 U.S. 273, 103 S. Ct. 1811, 1819.” The District Court observed the Bureau did not concede that Canal Road was a public road and reserved its right to prohibit public use at a later date. As a consequence, if the District Court were to grant the Association the relief it requested and declare the Canal Road a public road, then it “would have to find the Sun River Slope Canal Road is a public road when it passes over the easement owned by the Bureau of Reclamation and available to the public at all times, in contravention of the position of the Bureau in the Stipulation.” Thus, a declaration of a public prescriptive easement over the Canal Road would require the District Court “to hold the interest claimed by [the Association] is superior to that of the United States.” Consequently, the District Court dismissed the Association’s complaint. The Association timely appeals from this order.
ISSUE
¶8 We state the sole issue on appeal as follows: Did the District Court err in dismissing with prejudice the Association’s complaint against Jones?
STANDARD OF REVIEW
¶9 “The question of whether a district court properly granted a motion to dismiss is a conclusion of law which we review to determine if the court’s interpretation and application of the law is correct.” Fleenor v. Darby Sch. Dist., 2006 MT 31, ¶ 6, 331 Mont. 124, ¶ 6, 128 P.3d 1048, ¶ 6. “When deciding a motion to dismiss based on lack of subject matter jurisdiction, a trial court must determine whether the complaint states facts that, if true, would vest the court with subject matter jurisdiction. A motion to dismiss should be construed in a light most favorable to the non-moving party and should not be granted unless it appears beyond a doubt that the non-moving party can prove no set of facts in support of its claim which would entitle it to relief.” Bradley v. Crow Tribe of Indians, 2003 MT 82, ¶ 12, 315 Mont. 75, ¶ 12, 67 P.3d 306, ¶ 12 (citations and quotations omitted).
DISCUSSION
¶10 Did the District Court err in dismissing with prejudice the Association’s complaint against Jones?
¶11 The resolution of this appeal turns on whether the FQTA requires that the Bureau be a party defendant to the Association’s suit. If it does, then the Association’s suit can proceed only in federal district court and the District Court in Montana would lack subject-matter jurisdiction. The pertinent language of the FQTA reads as follows:
The United States may be named as a party defendant in a civil action under this section to adjudicate a disputed title to real property in which the United States claims an interest, other than a security interest or water rights.
28 U.S.C. § 2409a(a).
¶12 The United States Supreme Court has held that FQTA “provide[s] the exclusive means by which adverse claimants c[an] challenge the United States’ title to real property.” Block, 461 U.S. at 286, 103 S. Ct. at 1819. Federal courts are vested with exclusive jurisdiction for claims arising under the FQTA. 28 U.S.C. § 1346(f).
¶13 The Association maintains that the District Court erred in dismissing its complaint because the FQTA is not applicable to this case. The Association asserts that the FQTA applies only when there is adversity between a claimant and the United States, and that the Stipulation demonstrates there is no adversity between the Bureau and the Association here. Thus, the District Court may still entertain the Association’s claims for declaratory and injunctive relief against Jones. The Association argues that Leisnoi, Inc. v. United States, 170 F.3d 1188 (9th Cir. 1999), supports its position.
¶14 Jones urges us to affirm, asserting that there does exist adversity and a dispute in title between the Bureau and the Association. As framed by Jones, the Association “raises a dispute as to the title of the real property at issue by seeking a declaratory judgment that the Canal Road is a public highway and that [the Association] and the public have a prescriptive easement over the Canal Road for ‘all lawful purposes.’ ” Jones asserts that the FQTA applies even if the United States is not “openly hostile” to a claimant, because it requires only that the United States have an interest in real property and that title to that property be in dispute. Jones asserts that both of these requirements are satisfied in this case, and that dismissal of the Association’s suit was therefore proper. In addition to Leisnoi, Jones claims that Schilling v. Wis. Dept. of Nat. Resources, 298 F. Supp. 2d 800 (W.D. Wis. 2003) and Calf Island Community Trust, Inc. v. Young Men’s Christian Assn. of Greenwich, 263 F. Supp. 2d 400 (D. Conn. 2003), support his position.
¶ 15 The Ninth Circuit’s decision in Leisnoi, relied upon by both parties on appeal, is instructive in the instant case. There, claimant Leisnoi, Inc., a certified Native village corporation, brought a quiet title action under the FQTA against the United States. Leisnoi was the owner of a piece of land in Alaska known as Termination Point, and wanted to sell it to the Exxon Valdez Oil Spill Trustees. Leisnoi, 170 F.3d at 1190. Termination Point was a parcel of land originally conveyed to Leisnoi by a federal grant from the United States government under the Alaska Native Claims Settlement Act (ANCSA), 43 U.S.C. § 1601. However, a third party named Stratman had previously filed a notice of lis pendens on Termination Point on behalf of the United States, based on the premise that Leisnoi did not actually qualify as a Native village under ANCSA, and thus was required to return Termination Point to the federal government. Leisnoi claimed this lis pendens cast a cloud on its title, impairing its ability to sell it to the Trustees.
¶16 Leisnoi initially filed a quiet title action against Stratman in the state courts of Alaska and was successful. Leisnoi, 170 F.3d at 1190. Leisnoi then filed a quiet title action against the United States under the FQTA in federal district court. In response, the government claimed no interest in Termination Point other than easements expressly reserved in the patents and other statutory restrictions, filed a disclaimer of interest, and argued that the district court lacked subject matter jurisdiction over the suit. Leisnoi, 170 F.3d at 1190-91. While refusing to recognize the disclaimer of interest, the federal district court did dismiss the suit for lack of subject matter jurisdiction.
¶17 On appeal, Leisnoi argued the district court’s dismissal of the suit was in error. In particular, Leisnoi argued that the FQTA grants jurisdiction “even when there is no asserted interest of the United States, of any kind, in the land in issue.” Leisnoi, 170 F.3d at 1192. However, the Ninth Circuit disagreed, stating that the FQTA “requires that the United States claim an interest and that title be disputed, in order for the United States to be made a defendant in an action.” Leisnoi, 170 F.3d at 1192. As a result, the Ninth Circuit concluded the following about the FQTA:
For initial jurisdiction to lie, therefore, there must be a conflict in title between the United States and the plaintiff. The peculiarity of this case is that, although the United States itself did not assert its interest in Leisnoi’s title, a third party, Stratman, insisted that the United States had a claim to title. This twist raises the question highly disputed by the parties: Can a third party’s assertion that the United States has an adverse claim of title suffice to support initial jurisdiction under the Quiet Title Act? We conclude that a third party’s claim of an interest of the United States can suffice if it clouds the plaintiffs title.
Leisnoi, 170 F.3d at 1192 (emphasis added).
¶18 Accordingly, the Ninth Circuit focused its analysis on whether Stratman’s lis pendens action, in light of Leisnoi’s successful quiet title action in Alaska state courts, created a cloud over Leisnoi’s title to Termination Point, thereby permitting Leisnoi to invoke the jurisdiction of the FQTA. The Ninth Circuit held that it did not. In particular, the Ninth Circuit found that Stratman’s bare assertion of title on behalf of the United States in the face of an Alaska Superior Court decision granting a quiet title action in Leisnoi’s favor, did not raise a cloud over Leisnoi’s title sufficient to invoke the jurisdiction of the FQTA. Leisnoi, 170 F.3d at 1193. Accordingly, the Ninth Circuit concluded that “[a]t the time the complaint was filed, therefore, and indeed until well after the district court had dismissed the action, there was no colorable conflict between an interest of the United States and an interest of Leisnoi in Termination Point.” Leisnoi, 170 F.3d at 1193.
¶19 Similarly, there is no colorable conflict of interest between the Bureau and the Association in this case. Thus, we reject Jones’s argument that the Association’s claims for a declaration of a public prescriptive easement against him must proceed under the FQTA. Simply put, Jones provides no authority for the proposition that a defendant in a property dispute can assert a property interest of the United States under the FQTA in order to remove the cause of action to federal district court, when the United States has been named as a defendant, knowingly and expressly disavowed a dispute in title between it and the claimant, and agreed to be voluntarily dismissed.
¶20 Under Leisnoi, a claimant can sue the United States under the FQTA, even if the United States itself does not actively claim a property interest, so long as a third party claims a property interest on behalf of the United States which clouds the claimant’s title. Leisnoi does not, however, permit what Jones is attempting here-namely, the assertion of a property interest on behalf of the United States after the United States has disavowed such an interest, in order to remove an action to federal court under the FQTA. In this regard, the additional cases upon which Jones relies are distinguishable. Schilling, for instance, raised the question of whether the federal government could be sued under the FQTA when the lands involved were being held for the Lac Courte Oreilles Band of Indians in trust. Schilling, 298 F. Supp. 2d at 802-04. Calf Island is also inapplicable because the interest of the United States in disputed property in that case was clearly established given that the government actually initiated a condemnation proceeding concerning the disputed land; thus, the jurisdiction of the federal courts under the FQTA was both proper and unquestioned. Calf Island, 263 F. Supp. 2d at 402-03. Here, in contrast, having been apprised of all the facts and the precise nature of the Association’s claims, the Bureau has expressly disavowed the notion that a public prescriptive easement over the Canal Road would create a dispute in title between its interests in the Canal Road and a public prescriptive use of that road.
¶21 Lastly, Jones asserts the title of the United States is in dispute simply by virtue of the Association’s claim for a public prescriptive easement. Under Leisnoi, again, only the Association, not Jones, could join the Bureau if it wanted to ensure that its claims would be legally valid. That is, in fact, precisely what happened, with both the United States and the Association later agreeing there was no such dispute in title between them. Jones’s argument for requiring the Association’s claims to proceed under the FQTA is entirely dependent upon his view that a public prescriptive easement ipso facto would raise a dispute in title between the Association and the Bureau. However, neither the Bureau nor the Association share this view. According to the Stipulation, the use of the Canal Road which the Bureau holds under its written easement has not been in conflict with public use of the Canal Road for roughly ninety years. In fact, it is entirely plausible that public use of the Canal Road would never be in conflict with the “nonexclusive” easement which the Bureau holds.
¶22 Accordingly, a “disputed title to real property” between the Association and the Bureau, which is required for jurisdiction under the FQTA, does not exist here. While it is possible that the grant of use given to the Bureau could, at some point in time, be in conflict with the potential grant of a public easement, it would rest for the Bureau to challenge the Association’s actions in District Court, and have the case removed to federal district court. Jones, however, provides no basis for creating such a conflict, and thereby bootstrapping the case into federal court under the FQTA.
¶23 For these reasons, we reverse the District Court’s dismissal of the Association’s suit. Because Jones failed to establish that the FQTA applies in this case, the District Court does have subject-matter jurisdiction over the Association’s claims against Jones. Therefore, we remand the Association’s cause of action to the District Court for further proceedings.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, WARNER and MORRIS concur.
In Pub. Lands Access Assn., Inc. v. Jones, 2004 MT 394, 325 Mont. 236, 104 P.3d 496, we affirmed a district court order granting a public prescriptive easement to the Association over a different right-of-way located on Jones’s property known as Broadle Road. Pub. Lands Access Assn., ¶¶ 33-34.
After Leisnoi was decided, the Alaska Supreme Court vacated the quiet title decision of the Alaska Superior Court, leading to further litigation on the FQTA claims. See Leisnoi, Inc. v. United States, 267 F.3d 1019 (9th Cir. 2001) (“Leisnoi II); Leisnoi, Inc. v. United States, 313 F.3d 1181 (9th Cir. 2002) (“Leisnoi II"). In Leisnoi II, the holding of Leisnoi on which we rely was affirmed. Leisnoi II, 267 F.3d at 1022-24 (discussing applicability of holding from Leisnoi). In Leisnoi III, the prior holdings of Leisnoi and Leisnoi II were not questioned or disturbed. Leisnoi III, 313 F.3d at 1183-84 (discussing Leisnoi and Leisnoi II).
As a purely legal matter, there is no reason to assume that the Bureau’s easement and a potential public prescriptive easement could not exist together. “An easement is a nonpossessory interest in land that gives a person the right to use the land of another for a specific purpose.” Taylor v. Mont. Power Co., 2002 MT 247, ¶ 11, 312 Mont. 134, ¶ 11, 58 P.3d 162, ¶ 11. As such, the Bureau’s interest in the Canal Road is a grant of use, not a grant of title. Taylor, ¶ 24. A public prescriptive easement over the Canal Road may affect Jones’s title in the estate, but not necessarily the Bureau’s grant of use.
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OPINION AND ORDER
¶1 Western Skys Ltd. Co., Tami Ellis, Dirk Ellis and Strawhouse Market, Inc., through their counsel, have petitioned the Court to file an out of time appeal as provided by M. R. App. P. 4(6).
¶2 Counsel cites as the reason that the appeal was not timely filed is that the notice of appeal was mistakenly sent to the Clerk of the District Court in Lewis & Clark County, rather than to the office of the Clerk of this Court as is required by M. R. App. P. 4(2)(a). When counsel discovered the error after being contacted by the Lewis & Clark County Clerk of the District Court and the Clerk of this Court, the time within to file an appeal had expired.
¶3 M. R. App. P. 4(6) provides that an out of time appeal will only be allowed in the infrequent harsh case under extraordinary circumstances amounting to a gross miscarriage of justice, and that extraordinary circumstances do not include mere mistake, inadvertence or excusable neglect.
¶4 We conclude that the petition does not meet the requirements of M. R. App. P. 4(6).
¶5 NOW, THEREFORE, IT IS ORDERED that the petition to file an out of time appeal must be, and is hereby, DENIED.
¶6 IT IS FURTHER ORDERED that the Clerk of this Court shall mail a copy of this Order to all counsel of record.
DATED this 13th day of February 2008.
/S/KARLA M. GRAY
/S/JOHN WARNER
/S/ JAMES C. NELSON
/S/ PATRICIA COTTER
|
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Town Pump’s Dillon, Montana, service station location experienced a release from its petroleum underground storage tanks in December 2002. In December 2003 Town Pump applied to the Petroleum Tank Release Compensation Board (Board) for a determination of eligibility for reimbursement for its costs in conducting the cleanup of the diesel fuel at the spill site. Relying on the statutes and regulations in effect at the time of the release, the Board determined that Town Pump was not eligible for reimbursement. Town Pump proceeded to a contested case proceeding. An administrative hearings examiner affirmed the Board’s determination and granted summary judgment for the Board. Town Pump filed an action in the First Judicial District Court challenging the administrative ruling. The District Court affirmed the Board. Town Pump appeals. We affirm.
ISSUE
¶2 A restatement of the issue on appeal is:
¶3 Did the District Court err when it affirmed the Board’s application of the version of the release reimbursement statute in effect at the time the release occurred, rather than the version of the statute in effect at the time reimbursement was sought?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 In July 2002 Town Pump applied to the Montana Department of Environmental Quality (DEQ) for a permit to replace the underground piping for its petroleum tanks at its service station in Dillon, Montana. The DEQ issued the requested permit and in November 2002 Town Pump Dillon was re-opened with new piping and release detection. During the five day period from December 8-12,2002, several sensors and alarms associated with the underground storage tank (UST) leak detection system for Town Pump Dillon were repeatedly triggered. Believing that the alarms were not indicative of an actual release of petroleum product from the tanks but rather were simply “bugs” that needed to be worked out of the new system, Town Pump did not immediately notify DEQ of any problems.
¶5 On December 10, a technician with the company that had installed the containment and alarm system at Town Pump Dillon stopped by just to check on the new system. The manager told him some of the alarms had been triggered. The technician investigated, bailed a small amount of fuel from one of the sumps and tightened a fitting. The record is not clear whether he returned to the store on December 11, but he did return on December 12 after the supervisor of Town Pump’s Technical Assistance Group (TAG) called and notified him that the sensors indicated a loss of approximately 1,000 gallons of fuel. The technician pumped several hundred gallons of fuel from the sumps during which time he detected and repaired a blown gasket that was causing the fuel leak. Town Pump TAG supervisor called DEQ at approximately 2 p.m. on December 12, reported the unusual operating condition including the alarms and sensors, and notified DEQ that Town Pump was in a potential release situation. On December 13, it was confirmed that Town Pump Dillon had experienced a release as that term is defined in § 75-11-302(24), MCA (2001). The company subsequently undertook and completed a cleanup to the satisfaction of the relevant agencies.
¶6 In December 2003 Town Pump filed an application for reimbursement from the Petroleum Tank Release Fund (the Fund) as authorized by § 75-11-301-321, MCA. In January 2005 the Board denied Town Pump’s application for eligibility for reimbursement on the ground that Town Pump had failed to notify DEQ within 24 hours of the release as required by the laws in effect at that time, i.e., § 75-11-308, MCA (2001) and Admin. R. M. 17.56.502 (1995). Town Pump appealed this initial Board ruling. In December 2005 the administrative hearing examiner issued its proposed order granting the Board’s motion for summary judgment and finding Town Pump ineligible for reimbursement. In March 2006 the Board adopted the hearing examiner’s proposed order and issued its final decision finding Town Pump ineligible for reimbursement from the Fund. In April 2006 Town Pump filed a Petition for Review of Order of the Petroleum Tank Release Compensation Board in the First Judicial District Court. In December 2006 the District Court issued its Decision and Order affirming the Board’s ruling. Town Pump filed a timely appeal.
STANDARD OF REVIEW
¶7 This case involves a legal conclusion only. The district court reviews the administrative agency’s legal conclusion for correctness and we apply the same standard of review to the district court’s determination. Solid Waste Cont. v. Dep. of Pub. Ser. Reg., 2007 MT 154, ¶ 16, 338 Mont. 1, ¶ 16, 161 P.3d 837, ¶ 16.
DISCUSSION
¶8 Issue: Did the District Court err when it affirmed the Board’s application of the version of the release reimbursement statute in effect at the time the release occurred, rather than the version of the statute in effect at the time reimbursement was sought?
¶9 This case arose out of disagreement over which of the following statutes applies to Town Pump’s request for reimbursement of cleanup costs. Town Pump maintains that the eligibility statute in effect at the time it filed its application for eligibility applies, while the Board determined that it was the statute in effect at the time Town Pump Dillon experienced its release which applies here.
¶10 The statute in effect at the time of the release, § 75-11-308, MCA (2001), provided, in relevant part:
(1) An owner or operator is eligible for reimbursement for the applicable percentage as provided in 75-ll-307(4)(a) and (4)(b) of eligible costs caused by a release from a petroleum storage tank only if:
(a) the release was discovered on or after April 13, 1989;
(b) the department is notified of the release in the manner and within the time provided by law or rule;
(e) with the exception of the release, the operation and management of the tank complied with applicable state and federal laws and rules that the board determines pertain to prevention and mitigation of petroleum releases when the release was discovered and remained in compliance following discovery of the release ....
The notification rule referred to in § 75-ll-308(l)(b), MCA (2001), above, required notice to DEQ within 24 hours of the occurrence of “[u]nusual operating conditions,” regulatory examples of which included “erratic behavior of product dispensing equipment” or “the sudden loss of product from the tank system.” Admin. R. M. 17.56.502(2) (1995). The regulations also required an owner/operator to notify DEQ within 24 hours of “[m]onitoring results from a release detection method required under [the regulations] that indicate a release may have occurred unless: [t]he monitoring device is found to be defective, and is immediately repaired, recalibrated or replaced, and additional monitoring does not confirm the initial result....” Admin. R. M. 17.56.502(3)(a) (1995).
¶11 Following significant legislative changes in 2003, the statute in effect at the time Town Pump filed for eligibility, § 75-11-308, MCA (2003), provided, in relevant part:
(1) An owner or operator is eligible for reimbursement for the applicable percentage as provided in 75-ll-307(4)(a) and (4)(b) of eligible costs caused by a release from a petroleum storage tank only if:
(a) the release was discovered on or after April 13,1989, and the release occurred from:
(i) an underground storage tank, as defined in 75-11-503, that was in compliance with 75-11-509 at the time that the release was discovered;
(ii) a petroleum storage tank, as defined in 75-11-302, that was in compliance with the applicable state and federal laws and rules that the board determines pertain to the prevention and mitigation of a petroleum release from a petroleum storage tank at the time that the release was discovered; or
(iii) an underground storage tank, as defined in 75-11-503, that the property owner had no previous knowledge of if the tank was in compliance with the applicable state and federal laws and rules that the board determines pertain to the prevention and mitigation of a petroleum release at the time that the release was discovered.
¶12 Town Pump posits three arguments to support its claim that it should have the benefit of retroactive application of the 2003 version of the statute: (1) the language of the amended statute expressly makes the amendments retroactive; (2) if the language in the amendment is not express, we should look to the intent of the Legislature and the act which demands the conclusion that it was intended to be retroactive; and (3) the amendments are remedial in nature and should be applied retroactively.
¶13 Town Pump does not argue that it notified DEQ of its release in accordance with the statutes and rules in effect at the time of the release. Moreover, it admits that it intentionally waited to seek reimbursement from the Fund until after the revised statute went into effect in October 2003, presumably to benefit from the revision which eliminated from the requirements for reimbursement eligibility the requirement that the UST owner/operator notify the DEQ of a release within 24 hours. Town Pump asserts the Legislature fully intended the amended version of § 75-11-308, MCA (2003), to be applied retroactively to any requests for reimbursement filed after the effective date of the amendments. Town Pump posits that the express language of subsection (l)(a) of the revised statute-“[a]n owner or operator is eligible for reimbursement for the applicable percentage as provided in 75-ll-307(4)(a) and (4)(b) of eligible costs caused by a release from a petroleum storage tank only if: (a) the release was discovered on or after April 13,1989”-supports its interpretation. It maintains that by the use of that phrase, the Legislature made it clear that the amended version of the statute was to be applied retroactively to all releases “discovered on or after April 13, 1989.”
¶14 Alternatively, Town Pump argues that should the above-referenced language not qualify as an express legislative statement of retroactivity, this Court should employ our analysis from State v. Hamilton, 2007 MT 167, 338 Mont. 142, 164 P.3d 884, in which we looked at the legislative intent of the underlying statute to determine if an amendment should be applied retroactively. Hamilton, ¶ 10. Lastly, Town Pump asserts that the 2003 amendments to § 75-11-308, MCA, were remedial in nature and were intended to “strip the Board and DEQ of any power to add eligibility requirements to the Act”; therefore it should be applied to actions occurring prior to enactment. Neel v. First Federal Sav. and Loan Assoc., 207 Mont. 376, 675 P.2d 96 (1984).
¶15 The Board, citing § 75-11-308, MCA (1989-2005), counters that since the creation of the Fund, a consistent eligibility requirement in both the statutes and the regulations has been that the tank, and its operation and management, must be in compliance with applicable law “at the time the release occurred” or “was discovered.” Both the 2001 and 2003 versions of this statute, quoted above, contain this requirement. Section 75-ll-308(l)(e), MCA (2001), and § 75-11-308(l)(a)(ii), MCA (2003).
¶16 The Board also points out that the eligibility regulations codified in the UST chapter of the Administrative Rules of Montana (ARMs) in effect at the time of Town Pump’s release expressly notified UST owners/operators that they must be in compliance with the release reporting requirements in order to be eligible for Fund reimbursement.
Admin. R. M. 17.58.326(l)(c)(v) (2002) of the Petroleum Tank Release Compensation Board Rules informs owners/operators that the “applicable state rules” used by the Legislature in § 75-11-308, MCA, included Subchapter 5 of the UST ARMs, “Release Reporting, Investigation and Confirmation.”
Admin. R. M. 17.56.501 (1995) unequivocally informed UST owners and operators “seeking reimbursement from the Montana petroleum tank release cleanup fund” that they “must comply with the requirements of this subchapter.”
Admin. R. M. 17.56.502(2) and (3) (1995) imposed a 24-hour notification requirement for “unusual operating conditions” or “monitoring results from a release detection method ... that indicate a release may have occurred ....”
¶17 Lastly, in support of its argument that the statutes and regulations buttress its determination of ineligibility, the Board points to § 75-11-309(1), MCA (2001) which requires that an owner or operator seeking reimbursement for eligible costs must notify DEQ “immediately” when the owner/operator “discovers or is provided evidence that a release may have occurred ....” (Emphasis added.)
¶18 It is undisputed that the 2003 revisions (1) eliminated specific reference to the “24-hour release notification rule” found in the pre2003 versions of the statute; (2) included an applicability clause and a savings clause; and (3) did not contain an express retroactivity clause. The applicability clause addressed amendments to § 75-11-307, MCA, exclusively; therefore, the Board determined that since § 75-11-307 was not at issue in Town Pump’s claim, it was inapposite. The savings clause stated “[This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].” The Board analyzed this language in the context of retroactivity and the absence of a retroactivity clause. Relying upon § 1-2-109, MCA (which states “No law contained in any of the statutes of Montana is retroactive unless expressly so declared.”), the Board determined that the savings clause in the 2003 revisions “preserved the eligibility requirements in effect prior to October 1, 2003.” In other words, eligibility for reimbursement from the Fund for corrective action costs incurred from an incident occurring prior to October 1, 2003, must be determined by the eligibility requirements in effect at the time of the release. Lastly, the Board concluded that the 2003 revisions were not remedial, and that they were substantive as opposed to procedural changes.
¶19 The District Court affirmed the Board’s decision, holding that the savings clause clearly expressed the Legislature’s intent to apply the statutes in effect at the time an owner’s and/or operator’s duty arose. The court concluded that Town Pump’s “duty” arose in December 2002 when the release detection system indicated a suspected release may have occurred. Town Pump failed to report these unusual operating conditions within the required 24-hour period mandated under the 2001 laws, and therefore the Board properly found Town Pump ineligible for reimbursement and the hearing examiner correctly granted summary judgment to the Board.
¶20 We reject Town Pump’s argument that the language in the 2003 version “clearly [was] intended to apply retroactively.” We note that in 2003, in addition to the statutory revisions at issue in this case, the Legislature revised several other provisions in Chapter 11 pertaining to USTs; in fact, it revised thirteen different sections in four parts of Chapter 11. Of these thirteen revisions, it expressly chose to make three revisions retroactive-§§ 75-11-202, 75-11-301, and 75-11-502, MCA. This is evidence that the Legislature clearly knows how to make amendments retroactive when it desires to do so, and also evidences a specific awareness of retroactivity language vis-á-vis revisions to Chapter 11 in particular.
¶21 We have repeatedly denied retroactive applicability of a revised law based on § 1-2-109, MCA, absent an express instruction from the Legislature. In re D.B., 2004 MT 371, ¶ 37, 325 Mont. 13, ¶ 37, 103 P.3d 1026, ¶ 37, Mountain West Farm Bureau v. Hall, 2001 MT 314, ¶ 12, 308 Mont. 29, ¶ 12, 38 P.3d 825, ¶ 12. Accord Porter v. Galarneau, 275 Mont. 174, 911 P.2d 1143 (1996), in which we clarified when we would give retroactive effect to changes in state statutes or judicial decisions. We concluded that under § 1-2-109, MCA, a “statute will not be given ‘retroactive effect’ unless the legislature expressly declares the statute to be retroactive.” Porter, 275 Mont. at 185, 911 P.2d at 1150. In the case before us, the Legislature did not expressly declare the statute to be retroactive; rather, it expressly stated in the savings clause that the statute did not apply to duties that matured before the effective date of the revised statute.
¶22 Having concluded that the Legislature expressed its intent that the amendments to § 75-11-308, MCA, not be retroactive, we need not address Town Pump’s remaining arguments.
CONCLUSION
¶23 For the foregoing reasons, we affirm the District Court.
CHIEF JUSTICE GRAY, JUSTICES WARNER, LEAPHART and MORRIS concur.
TAG was responsible for all repairs and maintenance for Town Pump, including underground storage tank repairs.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 On July 13, 2005, Flathead Citizens for Quality Growth, Inc. (Citizens) filed suit against the Flathead County Board of Adjustment (Board) in the Eleventh Judicial District, Flathead County. The suit challenged a decision by the Board issuing a Conditional Use Permit (CUP) to Tutvedt Family Partnership (Tuvedt). The CUP allowed Tutvedt to extract and crush gravel on a 320-acre parcel of land it owned in the West Valley area of Flathead County. Citizens argued the issuance of the CUP violated the zoning regulations of the West Valley Zoning District (District) because it permitted Tutvedt to operate a gravel crushing operation which was not accessory to normal farm operations. Subsequently, Tutvedt intervened in the suit and also challenged the Board’s decision. Tutvedt, however, argued that the CUP was too narrow in scope because it prohibited Tutvedt from establishing asphalt and concrete batching operations on its land within the West Valley. The District Court ultimately granted summary judgment to the Board, denied motions for summary judgment filed by Tutvedt and Citizens, and upheld the lawfulness of the Board’s decision to issue the CUP. Both Tutvedt and Citizens appealed. We affirm in part, reverse in part, and remand to the District Court for further proceedings.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 From September 1995 to October 1996, residents of the West Valley, an area northwest of Kalispell in Flathead County, began a major overhaul of the zoning regulations governing the District. The initial impetus for this process was a proposal to establish a neighborhood convenience store near a local school in the West Valley. The residents held a series of monthly meetings in which they evaluated existing land uses, generated input about concerns and issues surrounding future land use, and ultimately developed a set of goals and a plan to guide land use and development in the District. Their efforts culminated in the West Valley Neighborhood Plan (Plan), a document which “examines the various physical, biological, and social elements of the area to establish a benchmark from which all future land use proposals can be measured. More importantly, the Plan presents a future vision for West Valley.”
¶3 Initially, the West Valley was classified primarily for silvicultural and agricultural uses. But as the Plan notes, “[t]he uniform application of a single zoning district to such a large area fails to recognize the variability of land features throughout the district. Not all the land can easily be classified as either ‘timber’ or ‘agriculture’, especially when considering how the land use character of the area has changed dramatically, even with zoning in place. The liberal use of subdivision exemptions (family transfers, occasional sales) over the past 17+ years has created a suburban development pattern in many locations.”
¶4 To respond to changing uses in the West Valley area, the residents formulated four land use goals, and accompanying policies, to guide the development of new zoning regulations. These goals include: (1) planning for wise use of the land in the West Valley; (2) maintaining the rural and scenic quality of the valley; (3) protecting air and water quality; and (4) protecting private property rights. The accompanying policies address the following major areas: agriculture/forestry, residential, commercial/industrial, open space, and public services. Within each policy area, the Plan makes specific recommendations consistent with the four major goals. Further, the Plan recommends that subdivision and zoning regulations be utilized to practically implement these policy recommendations. “Subdivision and zoning regulations are the primary tools of plan implementation. Subdivision regulations can assess compliance of proposed land divisions with the Neighborhood Plan and zoning regulations and require mitigation measures as appropriate .... Land use regulations generally establish allowable uses, set minimum lot sizes, and identify performance standards for new development.”
¶5 In April of 1997, the Flathead County Board of County Commissioners (Commissioners) adopted the Plan as the basis for a new set of zoning regulations governing land use in the District. The Flathead County Zoning Regulations (FCZR, or Regulations) define the District as “[a] district to promote orderly growth and development in the West Valley area consistent with the community vision statements as expressed by the text and map exhibits of the West Valley Neighborhood Plan, County Resolution #1226-A.” FCZR § 3.34.010. In addition to citing directly to the Plan in its definition of the District, the Regulations also directly incorporate provisions of the Plan into the Regulations themselves. “In cases where a neighborhood plan, addendum to a Master Plan, or other adopted document contains aspects related to zoning and is under the jurisdiction of these regulations, the provisions that are more restrictive shall control.” FCZR § 1.04.020.
¶6 In March 2005, Tutvedt applied to the Board for a CUP to operate a gravel pit on a 320-acre parcel of land it owned within the District. Tutvedt sought permission to extract and process gravel and sand, conduct limited retail gravel sales, use a crushing machine, and operate an asphalt batch plant. Under FCZR § 2.03, the Board has the authority and responsibility to approve or deny such permits. FCZR § 2.06 outlines the process which the Board must follow when considering an application for a CUP. One of the steps in this process requires the Board to evaluate the CUP under a specific set of criteria listed at FCZR § 2.06.080. These criteria cover four major areas: Site Suitability, Appropriateness of Design, Availability of Public Services and Facilities, and Immediate Neighborhood Impact. Further, under FCZR § 2.06.090, the applicant has the burden of proof to show the criteria have been satisfied. Because Tutvedt’s initial application lacked the necessary information to satisfy these criteria, the Board tabled it until Tutvedt could provide further information.
¶7 After Tutvedt supplied the required information, the Flathead County Planning and Zoning Department prepared a Staff Report (Report) which thoroughly evaluated the application. The Report provides background information on Tutvedt’s proposed operation and the existing land use in the District. The Report also considers and applies the relevant Regulations and state laws to the CUP application, makes specific findings of fact, and concludes with a series of recommendations to the Board. Because the Board ultimately adopted it as the basis for its decision, aspects of the Report which bear significantly on the issues raised in this appeal must be discussed in some detail.
¶8 One significant issue which the Report addresses concerns the zoned status of the District itself. The Report begins by stating the definition of the District from the Regulations themselves. See ¶ 5. The Report goes on to note that while the Plan acknowledges an “increase in residential lots in the West Valley zone,” the Plan also states that residential uses, along with agricultural and silvicultural, “comprise a third major land use component of the West Valley area.” From this, the Report determines that “[t]here is no clear indication in the planning documents that the West Valley Zoning District is an exclusively residential zone.” This observation is repeated in the “Findings of Fact” section later in the Report:
The West Valley Zoning District is not strictly defined as residential or agricultural. The Flathead County Zoning regulations and West Valley Neighborhood Plan indicate the district is intended for a variety of uses, including agricultural and silvicultural, while recognizing that areas of West Valley are becoming increasingly residential.
¶9 A second significant issue discussed by the Report concerns the nature of Tutvedt’s proposed operation, and whether it qualifies as an “extractive industry.” The Report describes Tutvedt’s proposed operation as consisting of the “extraction and processing of gravel, limited retail gravel sales, a crushing machine, and an asphalt batch plant ....” The Report observes that “gravel extraction” is listed as a conditional use at FCZR § 3.34.080(8), and that the Plan itself states that opportunities for gravel extraction should be allowed. The Report also notes that the term “gravel extraction,” and the range of activities included in this term, are nowhere defined in the Regulations. “Extractive industries,” however, are defined as “[c]ommercial or industrial operations involving the removal and processing of sand, rock, soil, gravel, or any mineral.” FCZR § 7.060.040. Yet “extractive industries” per se are not listed as permitted or conditional uses in the District. In other words, “gravel extraction” is permitted but not defined, and “extractive industries” are not permitted in the District but are defined elsewhere in the Regulations. As a result, it is not clear whether the type of “gravel extraction” allowed in the District is synonymous with “extractive industries,” or whether “gravel extraction” has a more limited meaning. The Report sums up this ambiguity as follows:
Disagreement exists among founding members of the West Valley Land Use Advisory Committee as to what was intended by the term “gravel extraction” and if it was meant to limit gravel operations to small “mom and pop” removal of gravel for personal or limited retail use, or if it is intended to be synonymous with “extractive industries”, including crushing, batch plant operations, and other associated activities. Review of historical documents related to the creation of the West Valley Zoning District offers no clarification.... [T]he intent of the West Valley Neighborhood Plan is subject to debate. The fact that “gravel extraction” is not defined in the Flathead County Zoning Regulations cannot be construed to mean it is synonymous with “extractive industries.” No definition exists, however, in either document to clarify exactly what is meant by “gravel operations” and “gravel extraction.”
¶10 Unable to determine the precise meaning of “gravel extraction” and unsure about the appropriate standards under which to evaluate the CUP, the Report evaluates Tutvedt’s application as if it were a request to establish an “extractive industry.” However, the Report makes clear that the final determination as to whether “gravel extraction” is synonymous with “extractive industries” rests with the Board itself. Notably, the Report explicitly conditions acceptance of its recommendation to issue a CUP on a determination by the Board that “gravel extraction” and “extractive industries” are synonymous terms.
It is recommended that the Flathead County Board of Adjustment adopt staff report #FCU-05-07 as findings of fact and, if it is determined that the terms “Gravel Extraction” and “Extractive Industries” are synonymous and that it is the intent of the West Valley Neighborhood Plan and the Flathead County Zoning Regulations to allow Extractive Industries in the West Valley District, grant a Conditional Use Permit subject to the following conditions .... (Emphasis added).
¶11 A third relevant aspect ofthe Report concerns an evaluation of the application under the required criteria at FCZR § 2.060.080. While the Report analyzes Tutvedt’s application under all the required criteria, only those criteria bearing on the appealed issues are excerpted below.
2.06.080 Criteria Required for Consideration of a Conditional Use Permit
1. A Conditional Use Permit may be granted only if the proposal, as submitted, conforms to all of the following general Conditional Use Permit criteria, as well as to all other applicable criteria that may be requested.
A. Site Suitability.
That the site is suitable for use. This includes ...
(2) . adequate access, and
(3) . absence of environmental constraints
C. Availability of Public Services and Facilities.
The following services and facilities are to be available and adequate to serve the needs of the use as designed and proposed ...
(6). streets.
D. Immediate Neighborhood Impact.
That the proposed use will not be detrimental to surrounding neighborhoods in general. Typical negative impacts which extend beyond the proposed site include:
(1). excessive traffic generation ....
¶12 Two major aspects of Tutvedt’s operation discussed in the Report are the potential impacts from increased traffic and impacts on water quality in the District. Under criteria A(2), the Report notes that three neighboring roads will see an increase in traffic as a result of Tutvedt’s operation: Farm to Market Road, Church Drive, and West Reserve Drive. Farm to Market Road will provide primary access to the site and is capable of handling the increased use. Another road, Church Drive, will also be impacted but is described by the Report as “substandard, with a narrow hard drive surface and minimal or no shoulder in some locations.” A third road, West Reserve Drive, “currently has significant traffic volume and will be impacted by this use.” These factors led the Report to conclude that “impacts to Church Drive and increased traffic volume on Farm to Market Road and West Reserve Drive are cause for consideration.” These concerns are reiterated under the “Availability of Public Services and Facilities” criteria, with the Report again noting that “[significant additional traffic will be generated as a result of this use.... Church Drive is substandard and will not accommodate an industrial approach.” Lastly, these concerns are repeated again under criteria D(l). “Increased travel on Church Drive is cause for consideration due to the substandard nature of the road, as is increased travel on West Reserve due to its proximity to the West Valley Elementary School.” In its “Findings of Fact” section, the Report concludes as follows:
The location of the site is cause for consideration. While Farm to Market Road is built to State standards and the access point has adequate visibility, Church Drive, West Reserve Drive, and Stillwater Drive, are either heavily traveled or below the standard for the volume of traffic that could be generated by this use.
¶13 The Report discusses impacts on water quality under criteria A(3), “environmental constraints.” The Report states that “[p]ublic concerns about water quality and the shallow aquifer are valid, however according to DEQ, extractive industries operated in accordance with department regulations have little to no impact on water quality.” As a result, the Report makes no particular findings respecting water quality impacts of the operation, concluding simply that “[r]eview of water quality impacts from this use is under the jurisdiction of the DEQ.”
¶14 In conclusion, the Report recommends 27 conditions be attached to Tutvedt’s CUP if approved by the Board. While it is not necessary to discuss all of these conditions, several merit consideration because of their bearing on the areas of the Report highlighted above. For instance, conditions numbered 8,16, and 27 all relate in some manner to the increased traffic impacts. Condition 8 mandates that two-hundred feet of the approach to the operation from Farm to Market Road be paved. Condition 16 requires that signage be erected to alert vehicular and pedestrian traffic of the increase in heavy truck traffic along Farm to Market Road, Church Drive, West Reserve Drive, Stillwater Drive, and West Valley Drive. Condition 27 limits the hours for heavy truck traffic within one mile of West Valley School while school is in session. Notably absent from these conditions, however, is any attempt to address or mitigate what the Report itself repeatedly refers to as the “substandard” condition of Church Road and West Reserve Drive.
¶15 Additionally, condition 15 seemingly addresses the water quality issue noted above by stating that the operation “shall comply with the Montana Opencut Mining Act, as administered by the Montana Department of Environmental Quality.”
¶16 On June 14, 2005, the Board held a hearing on Tutvedt’s application. The meeting began with a review of the above-mentioned Report by the county planner. After a brief discussion, the Board took oral testimony from proponents and opponents of the operation, including presentations by attorneys from both sides. Many issues and concerns were raised in the course of this hearing. One issue concerned the operation of State law to limit the authority of the Board to deny or modify Tutvedt’s application. Proponents of the operation argued that the District was not zoned “residential” and that § 76-2-209, MCA, prevented the Board from denying or limiting Tutvedt’s CUP. Opponents of Tutvedt’s application disputed this claim, arguing the District was “residential” and that the Board did have authority to limit or deny Tutvedt’s CUP under § 209(2).
¶17 Another issue raised in the course of the testimony was whether the Regulations and the Plan allowed for “extractive industries,” and whether Tutvedt’s proposed operation was permissible under the Regulations and the Plan. Other individuals recited concerns about traffic impacts and water quality issues. Some individuals testified as to the poor quality of the surrounding roads, and questioned how they would be affected by heavy truck traffic. Others, including an expert hydrologist, testified about the potential impacts of Tutvedt’s operation on the Lost Creek Fan, an aquifer located in West Valley, and requested that the Board study the matter further before issuing the CUP. There was also discussion about whether the Board could issue a CUP before Tutvedt obtained a reclamation plan from the State. The attorney for Citizens argued that the Regulations required a reclamation plan prior to approval of a CUP, and that the Board had to table the application until the plan had been approved. Many other issues were discussed as well. In all, the testimony lasted over two hours with both sides having ample time to air their views and concerns before the Board.
¶18 After public comment was concluded, the Board heard testimony again from the county planner and then began public deliberations. The Board members discussed almost all of the issues raised by the Report and the public testimony, including how the impacts from increased traffic would be handled, whether the District was zoned “residential,” whether the Board could consider data and science on water quality impacts, and whether the Board was prohibited from denying Tutvedt’s application under § 76-2-209, MCA. The Board also discussed whether the Plan and the Regulations permitted extractive industries in the District, and in particular whether Tutvedt could establish asphalt batch plants in its operations. After discussion was concluded, the Board denied Tutvedt’s application for a CUP by a vote of 2 to 2.
¶19 After the vote, the Board members discussed whether they could entertain a motion to amend the CUP and attach an additional condition prohibiting asphalt and concrete batch plant operations. Although not directly consulted, the county attorney volunteered to the Board that it could make such a motion. After this, the Board members spent several minutes formulating the language to be inserted as an additional condition in the CUP. After consensus as to the exact wording, the members passed, by a 3 to 1 majority, a motion to amend the CUP with the additional condition. That amendment became Condition No. 28, which prohibited asphalt and concrete batch plant operations.
¶20 On July 13, 2005, Citizens filed suit against the Board in the Eleventh Judicial District, Flathead County. In their complaint, Citizens alleged the Board’s decision violated the Regulations, was arbitrary and capricious, and adversely affected the rights and the health, safety, and well-being of Citizens’ members. In particular, Citizens alleged the Board’s decision failed to properly determine the District was a residential zone, permitted an unlawful use under the District’s Regulations, and was arbitrary and capricious for failing to address the adverse impacts of Tutvedt’s operation. Further, Citizens alleged the approval of the CUP violated their right to a clean and healthful environment under Articles II and IX of the Montana Constitution. Based on these allegations, Citizens sought a determination that the CUP issued to Tutvedt was unlawful and that the District is a residential zone, or, in the alternative, for a determination that § 76-2-209, MCA, is unconstitutional as applied to the facts in this case. Citizens subsequently moved for summary judgment on all these issues.
¶21 Tutvedt also intervened in this matter and challenged the Board’s decision, albeit on different grounds. Tutvedt argued the Board’s prohibition against asphalt and concrete batching was in violation of § 76-2-209, MCA. Tutvedt maintained that the District was not zoned residential and that § 209(3) allowed the Board to reasonably condition, but not prohibit, the complete use, development, and recovery of its gravel resources. Accordingly, the Board could not deny Tutvedt the right to operate asphalt batching plants because this processing was necessary for it to make complete use of its gravel resources. Tutvedt sought a declaration from the District Court that the Board improperly imposed the prohibition on asphalt and concrete batching in the CUP. Additionally, Tutvedt opposed Citizens’ arguments seeking to reverse the Board’s decision on the grounds discussed directly above.
¶22 The Board opposed both parties, and moved for summary judgment to affirm the lawfulness of the Board’s decision in all its particulars and the CUP issued to Tutvedt. In opposing Tutvedt’s motion, the Board asserted § 76-2-209(2), MCA, allows for the prohibition of gravel operations “within an area zoned as residential,” and that the District meets this definition because it was zoned for residential use, even though it is not exclusively a residential zone. Accordingly, the Board was within its authority to allow gravel extraction, a conditional use, while prohibiting asphalt and concrete batch plants, an extractive industry.
¶23 In opposing Citizens, the Board argued its decision was not arbitrary and capricious because it considered and addressed all the required criteria under FCZR § 2.06.080, including traffic safety and water quality impacts. It maintained the CUP allowing extraction and crushing on-site complied with FCZR § 3.34.030(8), which lists “gravel extraction” as a conditioned use. The Board asserted the Regulations, not the Plan, controlled pursuant to § 76-1-605(2), MCA, and since the Regulations did not place any limitations on the extraction of gravel, the CUP issued by the Board was appropriate. The Board also disputed Citizens’ claims that Tutvedt’s failure to obtain a State-approved reclamation contract prior the Board’s approval of the CUP rendered its decision unlawful. The Board noted that under the Opencut Mining Act, §§ 82-4-401-446, MCA, a reclamation permit could not be obtained, and a plan approved, until the Board certified that Tutvedt’s operation complied with the Regulations. However, the Board could not make this certification until the CUP was approved. Because of this, it was permissible for the Board to first issue the CUP and certify that Tutvedt’s operation complied with the Regulations so that regulators with the Department of Environmental Quality (DE Q) could then approve the reclamation plan. Further, the Board countered assertions that its decision violated Citizens’ right to a clean and healthful environment. The Board maintained it considered all the pertinent criteria in evaluating Tutvedt’s application and attached conditions aimed at mitigating adverse impacts. The Board also argued that the Legislature charged the DEQ, not the counties, with protecting the right to a clean and healthful environment. By requiring Tutvedt to comply with applicable statutes and DEQ regulations, the Board adequately discharged its duty to Citizens’ members.
¶24 The District Court granted summary judgment to the Board and denied both Citizens’ and Tutvedt’s motions for summary judgment. The District Court concluded the Board’s decision was not arbitrary and capricious, but that it “was correct both procedurally and substantively.” The District Court found the Board correctly determined the District was a residential area, that it considered all the necessary factors in its decision, and that it was within its authority under § 76-2-209, MCA, to prohibit asphalt and concrete batch plants, but allow Tutvedt to extract and crush gravel on site. Both Tutvedt and Citizens timely appealed the District Court’s grant of summary judgment to this Court.
ISSUES
¶25 We restate the issues on appeal as follows:
¶26 Issue One: Did the District Court err in concluding the issuance of the CUP was lawful under the District’s Regulations?
¶27 Issue Two: Did the District Court err in concluding the Board’s issuance of the CUP was not arbitrary and capricious?
¶28 Issue Three: Did the District Court err in concluding the Board had the authority to approve the CUP prior to Tutvedt obtaining a State-approved reclamation contract?
¶29 Issue Four: Did the District Court err in concluding that under § 76-2-209, MCA, the Board could issue Tutvedt a CUP which prohibited asphalt and concrete batch operations?
¶30 Issue Five: Is § 76-2-209, MCA, unconstitutional as applied in this case?
STANDARD OF REVIEW
¶31 We review de novo appeals from a district court’s grant of summary judgment. Wendell v. State Farm Mut. Auto. Ins. Co., 1999 MT 17, ¶ 9, 293 Mont. 140, ¶9, 974 P.2d 623, ¶ 9. We apply the standards established in M. R. Civ. P. 56(c), meaning the moving party must establish “ ‘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.’ ” Hughes v. Pullman, 2001 MT 216, ¶ 20, 306 Mont. 420, ¶ 20, 36 P.3d 339, ¶ 20 (quoting M. R. Civ. P. 56(c)). Once this burden has been satisfied, the non-moving party may raise a genuine issue of material fact by presenting substantial evidence essential to one or more elements in the case. Russell v. Masonic Home of Mont., Inc., 2006 MT 286, ¶ 9, 334 Mont. 351, ¶ 9, 147 P.3d 216, ¶ 9. We review a district court’s conclusions of law to determine whether or not they are correct. Russell, ¶ 9.
¶32 “Section 76-2-227, MCA, authorizes the reviewing court to hold a hearing and reverse, affirm, or modify a decision made by a board of adjustment. A district court is thus bound to review a board of adjustment's decision for an abuse of discretion.” Arkell v. Middle Cottonwood Bd. Of Zoning Adjustment, 2007 MT 160, ¶ 24, 338 Mont. 77, ¶ 24, 162 P.3d 856, ¶ 24. To determine whether an abuse of discretion has occurred, we examine “whether the information upon which the Board based its decision is so lacking in fact and foundation that it is clearly unreasonable and constitutes an abuse of discretion.” North 93 Neighbors, Inc. v. Bd. of Co. Commissioners of Flathead County, 2006 MT 132, ¶ 44, 332 Mont. 327, ¶ 44, 137 P.3d 557, ¶ 44 (quotation omitted).
DISCUSSION
¶33 Issue One: Did the District Court err in concluding the issuance of the CUP was lawful under the District’s Regulations?
¶34 The District Court concluded that the Board acted within its authority under the Regulations when it issued the CUP to Tutvedt. Citizens assert this was error. Citizens point out that the Board issued Tutvedt a CUP for what it termed an “extractive industry,” which is neither a permitted nor conditional use in the District’s Regulations. The CUP allows Tutvedt to extract and crush gravel as part of its gravel extraction operation. Citizens argue that such operations go beyond simple gravel extraction and constitute an “extractive industry” in violation of the Regulations. Additionally, Citizens assert that under FCZR § 1.04.020 the Board was required to give effect to certain provisions in the Plan, yet failed to do this. Citizens note the Plan specifically states that “new industrial uses are not to be encouraged but some allowance for limited retail commercial may be OK, with restrictions ...” Further the Plan states that, “[i]ndustrial uses should not be permitted except those accessory to normal farm operations.” Citizens argue the Tutvedt operation is a significant commercial undertaking and is not accessory to normal farm operations. Since FCZR § 1.04.020 states that more restrictive provisions in a neighborhood plan should control in such instances, these provisions in the Plan should preclude Tutvedt’s operation.
¶35 The Board counters Citizens’ claims and argues its decision to allow gravel extraction did not violate the Regulations. It notes that “gravel extraction” is a conditional use under the District’s Regulations. Since this term is not explicitly defined in the Regulations, the common definition of extraction should be used. Because the verb “to extract” means “to draw out or forth; to pull from a fixed position,” Tutvedt should be allowed to operate a crusher because “[i]n order to extract gravel, not just earth and rocks, crushing is necessary.” Further, the Board argues it did not equate gravel extraction with extractive industries, but only evaluated Tutvedt’s operation as an “extractive industry” because no other standard was provided in the Regulations. The Board points out that it allowed only “gravel extraction” as evidenced by the fact the CUP allowed Tutvedt to crush gravel as part of gravel extraction, but denied it the opportunity to engage in concrete and asphalt batching.
¶36 The Board also disputes Citizens’ contention that more restrictive provisions in the Plan are controlling in this case. The Board argues that § 76-1-605(2), MCA, operates to specifically prohibit provisions in the Plan from controlling land use in the District. The Board argues that Section 605 only permits duly enacted zoning regulations, not a growth policy such as the Plan, to control land use decisions.
¶37 To resolve this dispute, we must first look to the Regulations themselves. As a general rule, the Board is bound to apply the zoning regulations as promulgated by the Commissioners. See FCZR § 2.03.040; § 76-2-223, MCA. “[A] board cannot ... disregard the provisions of, nor exceed the powers conferred by, a zoning ordinance and must act in accordance with the law.” 101A C.J.S. Zoning and Land Planning § 232 (2007) (footnotes omitted). In interpreting zoning ordinances, we apply the basic rules of statutory construction. Schanz v. City of Billings, 182 Mont. 328, 332, 597 P.2d 67, 69 (1979). “If the language of an ordinance is plain and unambiguous, it is not subject to interpretation or open to construction but must be accepted and enforced as written.” Schanz, 182 Mont. at 332, 597 P.2d at 69. Our first task, then, is to interpret the zoning ordinances according to their plain meaning in order to give effect to the intent of the boards of county commissioners which have enacted them. Missoula Co. v. Am. Asphalt Inc., 216 Mont. 423, 426, 701 P.2d 990, 992 (1985). If a plain meaning analysis does not reveal the intent of the board, we may resort to other rules of statutory construction. Am. Asphalt, 216 Mont. at 426, 701 P.2d at 992. Moreover, when examining zoning “ordinances [we] will not ... read [them] so narrowly as to restrict the plain meaning of the whole law ... [but will] construe [them] in a manner that will give effect to them all....” Schendel v. Bd. of Adjustment of the City of Bozeman, 237 Mont. 278, 284, 774 P.2d 379, 383 (1989) (quotations and citations omitted).
¶38 Citizens and the Board both agree that the District’s Regulations do not permit extractive industries. They disagree, however, on whether the operation allowed by the CUP in this case constitutes an “extractive industry.” At the outset, we agree with Citizens that the Board’s position in this matter seems somewhat inconsistent. On the one hand, the Board acknowledges that “extractive industries” are not permitted or conditional uses in the District. On the other hand, the Board seems to have approved what it itself considers to be an “extractive industry.” The Report evaluates Tutvedt’s operation as if it were an extractive industry, and is entitled “Staff Report #FCU-05-07(a), Tutvedt Family Partnership, Extractive Industry.” Moreover, the Report explicitly states that the Board should issue a CUP only if it determines that “the terms ‘Gravel Extraction’ and ‘Extractive Industries’ are synonymous and that it is the intent of the West Valley Neighborhood Plan and the Flathead County Zoning Regulations ... to allow Extractive Industries in the West Valley District....” See ¶ 10. By approving the CUP, the Board seems to have implicitly assented to the notion that these terms are in fact synonymous. Moreover, in a letter sent to Tutvedt by the Board on June 15, 2005, it specifically states that “[t]he Board made a motion to approve your request for an extractive industry with amended conditions. The amended conditions are attached with your permit.” While we understand that the Report evaluated the application under the “extractive industry” standard simply because no other standard was provided, these facts nonetheless suggest that, from the Board’s perspective at least, it issued a CUP for an extractive industry. This position is at odds with its current argument before the Court.
¶39 Another factor complicates the Board’s position here. We disagree with the Board’s assertion that the Plan is not applicable to the Board’s decisions by virtue of § 76-1-605(2), MCA. In fact, the opposite is true. Section 76-1-605(2), MCA, provides as follows:
(a) A growth policy is not a regulatory document and does not confer any authority to regulate that is not otherwise specifically authorized by law or regulations adopted pursuant to the law.
(b) A governing body may not withhold, deny, or impose conditions on any land use approval or other authority to act based solely on compliance with a growth policy adopted pursuant to this chapter.
¶40 Contrary to the Board’s contention, this statute does not prohibit the enforcement of growth policies in all circumstances but simply states that a growth policy or master plan only acquires legal force by virtue of another law or regulation. Section 1.040.020 of the Regulations provides the type of authority contemplated by this statute by stating “where a neighborhood plan ... contains aspects related to zoning and is under the jurisdiction of these regulations, the provisions that are more restrictive shall control.” Because the Plan is “specifically authorized by law or regulations adopted pursuant to the law” by virtue of FCZR § 1.040.20, it does confer authority to regulate and therefore the provisions of the Plan that are more restrictive must indeed control.
¶41 In this case, the Plan “[a]llow[s] opportunities for gravel extraction” but also states that “[ijndustrial uses should not be permitted except those accessory to normal farm operations.” These two provisions relate to zoning, are under the jurisdiction of the Regulations, and are applicable in the instant case. On the surface, Tutvedt’s operation cannot be reconciled with the plain language of these provisions. On the one hand, it could be seen as a limited gravel extraction operation in that concrete and asphalt batching is prohibited. On the other, Tutvedt has never alleged that its proposed gravel operation is intended to be “accessory to normal farm operations.”
¶42 Because Tutvedt is the applicant in this case, it bears the burden of proving the operation complies with the requirements of the Regulations. “The burden of proof for satisfying the aforementioned criteria shall rest with the applicant and not the Board of Adjustment. The granting of a Conditional Use Permit is a matter of grace, resting in the discretion of the Board of Adjustment and a refusal is not the denial of a right, conditional or otherwise.” FCZR § 2.06.090. One of the threshold determinations which must be met is that the use itself is permitted under the Regulations. See FCZR § 2.06.020. Given the uncertainty as to the meaning of “gravel extraction” as a conditional use in this case, it rests with Tutvedt to demonstrate that its proposed operation is consistent with the District’s Regulations and the Plan. However, Tutvedt’s application does not make this showing. In the first instance, Tutvedt does not show that its proposed operation is consistent with the type of gravel extraction allowed under the Plan and the District’s Regulations, and is distinguishable from an extractive industry per se. Second, Tutvedt does not demonstrate that its operation is “an industrial use [which is] accessory to normal farm operations,” or that its proposed operation does not run afoul of any controlling provisions in the Plan. By failing to make this showing, Tutvedt does not prove its proposed operation is a permitted or conditional use under the Regulations and the Plan.
¶43 Further, the Board itself failed to make any determinations on these issues as well. Although the question arose as to how Tutvedt’s operation was accessory to normal farm operations, an answer was never provided and factual findings were never made. There is no indication in this record that the Board looked at the relevant provisions of the Plan in light of FCZR § 1.04.020 and made an attempt to reconcile those controlling provisions of the Plan with Tutvedt’s operation. Nor were there any findings that “gravel extraction” includes extraction of gravel and on-site crushing. While the Board members obviously believed crushing was a part of gravel extraction, they provide no factual foundation for their position.
¶44 There are important reasons why the Board should have made determinations on these issues prior to approving Tutvedt’s CUP. First, such findings were required by the Report itself as a pre condition to adopting its recommendations to the Board. The Report stated that its recommendations should only be adopted if it was determined that “gravel extraction” and “extractive industries” were synonymous. See ¶ 10. In light of the circumstances, the Board should have either found that the Regulations allow for “extractive industries” in the District, or should have distinguished Tutvedt’s proposed operation from an “extractive industry” as that term is defined at FCZR § 7.06.040. Because a determination on this issue was central to an acceptance of the Report’s recommendation to approve the CUP, failure to make this determination leaves it unclear as to how much of the Report’s reasoning and conclusions were actually adopted by the Board in its final decision.
¶45 While it appears that members of the Board believed an extraction and crushing operation did not constitute an “extractive industry” as defined in the Regulations, nothing in the record indicates the factual basis for their decision. On-site crushing may be contemplated by the term “gravel extraction” as used in the Regulations, but the opposite could be true as well. The addition of crushing operations to the extraction of gravel could be viewed as an aspect of “processing” as that term is used in FCZR § 7.06.040, and thus constitute an “extractive industry.” Other courts have drawn a distinction between “gravel extraction” itself and aspects of processing gravel such as crushing, washing and screening. E.g.,Am. Ashpalt, 216 Mont. at 427-8, 701 P.2d at 993 (stating that “gravel processing on site includes washing, crushing, screening, and concrete and asphalt batching....”); Kuhl v. Zoning Hearing Bd. of Greene Tp., 415 A.2d 954, 956-7 (Pa. 1980) (noting that cessation of gravel crushing and washing operations did not constitute abandonment of a gravel pit while extraction continued); In Re Barlow, 631 A.2d 853, 855-56 (Vt. 1993) (discussing gravel extraction separate and apart from operating a gravel crusher). Given the importance of this distinction, the Board should have provided a factual foundation for its implicit conclusion that crushing on-site does not constitute an “extractive industry,” while on-site asphalt and concrete batch operations do.
¶46 Second, the Regulations themselves require the Board to make specific findings on these issues. “Every decision of the Board of Adjustment pertaining to the granting, denial, or amendment of a request for a Conditional Use Permit shall be based upon ‘Findings of Fact’, and every finding of fact shall be supported in the records of its proceedings.” FCZR § 2.06.100. An implicit decision that Tutvedt’s operations are consistent with the Regulations and the Plan pertains directly to the granting and amendment of Tutvedt’s CUP. Yet, the Board never issued any findings on whether the Plan and the Regulations would permit on-site extraction and crushing of gravel where such operations are not incident to normal farm operations. As such, the Board’s decision was not supported by the specific findings of fact required under FCZR § 2.06.100.
¶47 Lastly, basic principles of administrative and zoning law require these findings in order to develop an adequate administrative record. As we have stated previously, it is a “general principle of administrative law ... [that] the record developed by an agency ... serves to flesh out the pertinent facts upon which a decision is based in order to facilitate judicial review.” North 93 Neighbors, ¶ 30 (quotation omitted). “The record made before a board of adjustment is essential to an enlightened determination of its action by a governing body or by a court on review.” E.C. Yorkley, Zoning Law and Practice vol. 3, § 18-9(f), 18-62 (Douglas Scott MacGregor ed., 4th ed. Lexis 2007). The absence of a developed record in this case places the Court “in the untenable position of having to substitute its own judgment for the Board’s judgment.” North 93 Neighbors, ¶ 30.
¶48 Here, a number of important questions remain unanswered following our review of the Board’s proceedings. We do not know what is meant by “gravel extraction” as used in the Regulations, or whether the Plan allows only gravel extraction when it supports normal farm operations. Similarly, we have no factual basis upon which to determine when “gravel extraction” stops, and at what point various forms of gravel processing turn “gravel extraction” into an “extractive industry.” The Report notes significant ambiguity on these questions, but declines to provide any answers, leaving that task to the Board itself. See ¶¶ 9-10. The Board, however, never directly answers these questions with the level of factual findings required by principles of administrative law and the specific requirements of the Regulations themselves.
¶49 Accordingly, we reverse the District Court and remand this issue for further proceedings. The District Court may exercise its broad powers of review under § 76-2-227, MCA. However, the primary purpose of a remand in this situation is to have the Board come forward with some findings of fact and conclusions to support its decision on the issues discussed directly above. See Arden H. Rathkopf, The Law of Zoning and Planning vol. 4., § 42.07,42-108[b] (Edward H. Ziegler, Jr. ed., 4th ed. West 1996) (discussing purpose of remanding decisions from a board of adjustment). In particular, there must be findings and related conclusions of law as to the following issues: (1) whether the Regulations and the Plan permit a gravel extraction operation that is not accessory to normal farm operations, and (2) whether on-site crushing operations are a part of “gravel extraction” as that term is used in the Regulations, or whether the use of on-site crushing operations constitutes an “extractive industry” under FCZR § 7.06.040.
¶50 While a remand for farther findings of fact and conclusions of law would normally render further appellate issues temporarily moot, we conclude it is appropriate to address the remaining issues stemming from the granting of the CUP in this case so as to provide further guidance thereon following remand.
¶51 Issue Two: Did the District Court err in concluding the Board’s issuance of the CUP was not arbitrary and capricious?
¶52 The District Court found that the Board’s action was not arbitrary and capricious, and that its final decision “was correct both procedurally and substantively.” Citizens contend the District Court erred because the Board’s decision did not adequately address either the impacts from increased traffic on affected roads in the West Valley, or the impacts on water quality from Tutvedt’s operation on the Lost Creek Fan. Citizens note that under FCZR § 2.06.090, Tutvedt has the burden of proving his application satisfies all the required criteria listed at § 2.06.080. See ¶ 11. Citizens maintain Tutvedt’s application was “woefully deficient” by failing to address water quality and traffic impacts, and that it therefore failed to satisfy these criteria. Citizens point out that the Board repeatedly noted the substandard conditions of the roads to be utilized by Tutvedt’s operation, but that neither the application nor the conditions attached to the CUP show how these impacts will be addressed. Further, Citizens note that expert and citizen testimony was given about existing water quality issues in the Lost Creek Fan, and that the Report observed water quality concerns were “valid.” Nevertheless, Tutvedt’s application provided no water quality information about the impacts its operation would have on ground water. The Report simply assumed that compliance with DEQ regulations would be sufficient to protect water quality in the West Valley. Citizens maintain the Regulations require the Board to do more to address these issues, and that its failure to do so renders its decision arbitrary and capricious.
¶53 The Board argues its decision was not arbitrary and capricious because it did consider all the impacts as required by the Regulations. The Board notes that it imposed 28 conditions on Tutvedt’s CUP, and that, in its Report and in public testimony, it properly considered all the impacts from Tutvedt’s operation. The Board therefore asserts that Citizens’ contentions are without merit.
¶54 Once again the plain language of the Regulations must first be considered in order to resolve this dispute. FCZR § 2.06.090 clearly places the burden of proof on the applicant, not the Board, to show that the criteria listed in § 2.06.080 have been satisfied. Moreover, the Regulations require the Board to make specific findings of fact to support its decision, and further state that “[a] mere finding or recitation of the enumerated conditions, unaccompanied by findings of specific fact, shall not be deemed in compliance with these regulations.” FCZR § 2.06.100. Accordingly, when water quality and traffic impacts have been identified, the CUP application must show how those impacts are addressed, and the Board must make specific findings of fact showing that the criteria have been satisfied. While we may not substitute our discretion in this matter for that of the Board, we must evaluate the Board’s decision in light of these criteria in order to determine whether the Board’s “decision is so lacking in fact and foundation that it is clearly unreasonable and constitutes an abuse of discretion.” North 93 Neighbors, ¶ 44 (quotation omitted).
¶55 In light of the plain language of FCZR § 2.06, we agree with Citizens that the District Court erred, and that the Board abused its discretion in issuing the CUP. The Board’s own findings show that substandard roads will see an increase in traffic due to Tutvedt’s operation, yet its decision is devoid of any factual findings or foundation to show how the conditions it attached to the CUP will address those impacts. The Regulations specifically require the Board to ensure that there are available and adequate streets and access to support Tutvedt’s operation. FCZR §§ 2.06.080(1)(A)(2) and (1)(C)(6). The Regulations also require the Board to ensure that “the proposed use will not be detrimental to surrounding neighborhoods ... [with respect to] excessive traffic generation ....” FZCR § 2.06.080(1)(D)(1). If anything, the relevant findings in the Report suggest that Tutvedt’s operation will not satisfy these criteria. See ¶ 12.
¶56 Here, there are repeated findings that the roads are “substandard” and that the impacts from increased traffic are a “cause for concern.” The Board notes that it imposed conditions to limit the hours of traffic, to increase signage, and to conduct actions to abate the dust (See ¶ 14), but neither Tutvedt’s application nor the Board’s decision contain any factual foundation showing how the imposed conditions will address the impacts on the substandard roads. Wfiiile it is possible conditions could be imposed to mitigate the traffic impacts from Tutvedt’s operation-e.g., improving the conditions of the roads themselves-Tutvedt’s application fails to propose them and the Board failed to address this issue. Given these unresolved issues, the issuance of the CUP was unreasonable and constitutes an abuse of discretion.
¶57 Similarly, we agree with Citizens that the Board abused its discretion when it failed to issue any findings of fact whatsoever on water quality impacts, and simply entrusted its obligation to the DEQ. Section 2.06.080(1)(A)(3) specifically requires the Board to making findings as to the “absence of environmental constraints” with respect to the suitability of the proposed site. Yet the Board issued no findings on this point, instead opining that compliance with DEQ permitting regulations would assure the criteria would be satisfied. While this may turn out to be the case, without any specific findings of fact it is either an opinion or a belief, and does not meet the requirements contained the Regulations. “A mere finding or recitation of the enumerated conditions, unaccompanied by findings of specific fact, shall not be deemed in compliance with these regulations.” FCZR § 2.06.100. At a minimum, the Board must provide some reasoning or factual foundation for its belief that compliance with DEQ regulations would be sufficient to discharge its obligation under the Regulations.
¶58 While Board members are not required to be expert hydrologists in order to comply with the Regulations, they must make some type of findings on these issues. It is not outside the ken of the informed citizen to receive and process basic information on impacts relating to water quality, as evidenced by citizen testimony on water quality issues given to the Board during the hearing. Moreover, it should be remembered that the burden in this case is on Tutvedt to show its operation is in compliance with the Regulations. Yet nothing in the application, or the Board’s proceedings, provides any facts, studies, or information to show that the proposed site has an absence of the environmental concerns raised by Citizens in reference to the Lost Creek Fan.
¶59 The Board is bound by the District’s Regulations and may not hand off its obligations thereunder to the DEQ. “Boards of appeal or adjustment are statutory creations entrusted with the duty of enforcing the provisions of the zoning ordinance and generally adjusting difficulties arising in the application of such ordinances in the public interest.” 101A C.J.S. Zoning and Land Planning, § 219 (footnotes omitted). While it is not necessary for us to precisely define the Board’s duty to address this issue, at a minimum the Regulations require Tutvedt adequately address the impacts its proposed operations may have on water quality in the West Valley. While compliance with DEQ regulations might be sufficient to protect water quality in the West Valley, it is still incumbent upon the Board to provide some level of factual foundation for this position. In this case, the Board abused its discretion by failing to provide such a factual foundation for its decision, other than a belief that compliance with unspecified DEQ regulations will automatically be sufficient to discharge its duties under the FCZR.
¶60 In concluding the Board abused its discretion, we do not in any way impugn the Board members’ conduct in this matter. A review of the proceedings demonstrates that Board members were faced with difficult choices, conflicting information, and a considerable degree of social pressure. In spite of these challenges, Board members handled themselves in a professional and thoughtful manner, and gave residents of the West Valley an open forum in which to debate and discuss these matters. Nonetheless, the District’s Regulations are specific in describing the procedure to be followed by the Board when issuing a CUP. The Board’s decision in this case was not in compliance with these legal requirements and did not adhere to the general principles of administrative law.
¶61 We reverse the District Court grant of summary judgment to the Board and remand this issue for further proceedings. As noted above at ¶ 49, the District Court has broad powers to review the Board’s decision under § 76-2-227, MCA. Further, in the event the District Court vacates the Board’s decision, Tutvedt is not without a remedy; it may reapply for a CUP pursuant to FCZR § 2.06.070 after one year, or sooner if “sufficient new evidence or conditions are offered to the Zoning Administrator to demonstrate to him that circumstances have altered and that further consideration of the application is warranted.”
¶62 Issue Three: Did the District Court err in concluding the Board had the authority to approve the CUP prior to Tutvedt obtaining a State-approved reclamation contract?
¶63 The District Court concluded that the Board did not err when it approved the CUP prior to Tutvedt obtaining an approved reclamation contract from the State because “[n]o reclamation plan could be developed until the CUP was approved.” Citizens contend this was error, because the Regulations clearly require that a reclamation contract be signed and approved by the State prior to the issuance of a conditional use permit. FCZR § 4.10.10. However, as the Board points out, the Opencut Mining Act, §§ 82-4-401-446, MCA, requires an application for an open cut mine permit to contain a statement from the Board certifying that the proposed operation complies with applicable zoning regulations. § 82-4-432(2)(c), MCA. However, the Board cannot issue this certification until it has approved the CUP, because only after the CUP has been approved is the operation officially certified as in compliance with the Regulations. In other words, while the Regulations require a finalized reclamation contract prior to approval of a conditioned use permit, the State cannot approve a permit and finalize such a contract until the Board can certify that the operation is in compliance with zoning regulations; an act which the Board carniot do until it has approved the CUP.
¶64 In essence, the Board is caught in a classic Catch-22 situation: it cannot issue a CUP until a reclamation contract has been approved, and a reclamation contract cannot be approved until a CUP has been issued. The Board urges us to ameliorate this situation by affirming its decision to issue “a conditional use permit, with appropriate conditions, to enable the State regulators to proceed.” Citizens, on the other hand, assert we should find the Board’s decision unlawful, because only the Commissioners and State regulators have the power to harmonize the statutes and the Regulations. Citizens note that prior approval of the reclamation contract is not simply “another bureaucratic step. Requiring a potential pit operator to submit a detailed reclamation plan before the CUP process is complete ensures that both the Board and the public will understand the impacts of the proposed operation before the Board makes a decision whether to allow the pit, condition it, or deny it.”
¶65 Resolution of this issue turns squarely upon the Board’s authority to modify or simply ignore the clear provisions of FCZR § 4.10.10. The powers of boards of adjustment are described at § 76-2-223, MCA. This statute provides as follows:
Powers of board of adjustment. (1) The board of adjustment shall have the following powers:
(a) to hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement of this part or of any resolution adopted pursuant thereto;
(b) to hear and decide special exceptions to the terms of the zoning resolution upon which said board is required to pass under such resolution;
(c) to authorize upon appeal in specific cases such variance from the terms of the resolution as will not be contrary to the public interest and where, owing to special conditions, a literal enforcement of the provisions of the resolution will result in unnecessary hardship and so that the spirit of the resolution shall be observed and substantial justice done.
(2) In exercising the above-mentioned powers, the board of adjustment may, in conformity with the provisions of this part, reverse or affirm, wholly or partly, or modify the order, requirement, decision, or determination appealed from and may make such order, requirement, decision, or determination as ought to be made and to that end shall have all the powers of the officer from whom the appeal is taken.
¶66 While the statute does grant the Board the ability to authorize zoning variances in situations where a literal enforcement would result in unnecessary hardship, nowhere does it grant the Board the authority to ignore, alter, or nullify duly enacted zoning ordinances. Because the Board’s authority is constrained by the statute, unless the statute authorizes the Board to ignore or reinterpret the Regulations, it has no power to do so. “It is beyond debate that a board may not exceed the powers placed in its hands by statute.” E.C. Yorkley, Zoning Law and Practice vol. 3, § 19.2,19-10 (collecting authorities); See also 101A C.J.S. Zoning and Land Planning, § 224.
¶67 We appreciate the difficult situation in which the Board is placed by the conflicting statutes and zoning regulations governing its conduct here. However, the Board does not cite to any legal authority in support of its argument to ignore the Regulations in this case. Yet the simple fact remains that the Board has no power or authority to alter or ignore the District’s Regulations, even if the Regulations effectively tie the Board’s hands. Moreover, it is not the Court’s province to rewrite the Regulations to allow the Board to issue a CUP prior to obtaining an approved reclamation contract with the State. That obligation lies with either the Commissioners, the Legislature, or the State, and it is up to those bodies to reconcile those differences.
¶68 For these reasons, we reverse the decision of the District Court finding that the issuance of the CUP was lawful despite its noncompliance with FCZR § 4.10.10.
¶69 Issue Four: Did the District Court err in concluding that under § 76-2-209, MCA, the Board could issue Tutvedt a CUP which prohibited asphalt and concrete batch operations?
¶70 Tutvedt faults the Board for not giving it a broader CUP which would allow it to operate concrete and asphalt batch plants. The District Court determined the Board was within its statutory authority to issue Tutvedt a CUP which prohibited asphalt and concrete batching, and consequently denied Tutvedt’s motion for summary judgment challenging the lawfulness of the Board’s decision under § 76-2-209, MCA. The relevant provisions of § 209 provide as follows:
(2) The complete use, development, or recovery of a mineral by an operation that mines sand and gravel or an operation that mixes concrete or batches asphalt may be reasonably conditioned or prohibited on a site that is located within a geographic area zoned as residential, as defined by the board of county commissioners.
(3) Zoning regulations adopted under this chapter may reasonably condition, but not prohibit, the complete use, development, or recovery of a mineral by an operation that mines sand and gravel and may condition an operation that mixes concrete or batches asphalt in all zones other than residential.
Sections 76-2-209(2) and (3), MCA (emphasis added).
¶71 The District Court reviewed this statute and determined it “does not require that the zone in which the property is located be denominated ‘Residential.’ ” The District Court further found the Board correctly determined Tutvedt’s property was “residential... [and] located in a zone classification which permits, and in which there exists, substantial residential use.” Accordingly, the District Court concluded Tutvedt’s property was “within a geographic area zoned as residential,” and that the condition in the CUP was properly imposed under the authority granted the Board by virtue of § 76-2-209(2), MCA.
¶72 The kernel of Tutvedt’s argument is that the District is not zoned “residential,” and should be considered zoned “other than residential” within the meaning of § 209(3). Tutvedt asserts the Board never determined that its property is residential or in a residentially zoned area but in fact concluded the District was not zoned “strictly residential.” Because of this, Tutvedt argues, § 209(3) applies. Under § 209(3), “in all zones other than residential” the Board “may reasonably condition, but not prohibit, the complete use, development, or recovery of’ Tutvedt’s mineral resources. Section 76-2-209(3), MCA. Tutvedt maintains the prohibition on concrete and asphalt batch plants in Condition No. 28 of the CUP denies it the ability to make complete use of its gravel resources because it is too cost-prohibitive to extract the gravel and then transport it to another location for processing.
¶73 Accordingly, Tutvedt contends the District Court erred in denying its summary judgment motion. Tutvedt argues the District Court incorrectly concluded that the Board correctly determined the area was a residential area, because no evidence existed in the record to support this finding. Tutvedt maintains it showed an absence of any genuine issue of material of fact as to whether the District was zoned “other than residential,” and that Citizens and the Board failed to counter this point.
¶74 Citizens and the Board urge us to affirm the District Court’s decision. They assert the District Court correctly concluded that the Board determined the District to be zoned “residential,” and that the Board was within its statutory authority under § 76-2-209(2), MCA, in issuing a CUP which prohibited concrete and asphalt batch plants. Both Citizens and the Board point to evidence in the Report and before the Board which supports their contention that the District is zoned “residential.” Citizens assert that Tutvedt asks this Court to read the word “exclusively” into § 76-2-209(2), MCA, meaning that § 209(2) applies only to zones with solely residential use. The Board argues that in adopting § 76-2-209, MCA, the Legislature did not require the use of any special terminology by boards of county commissioners, and that the District, because it is zoned for residential use, is exactly the type of zoning district contemplated by § 209(2). Accordingly, the Board had the power to completely prohibit any gravel development, and did not exceed its authority in prohibiting asphalt and concrete batch plants as a condition to the CUP.
¶75 Resolution of this issue turns on the intent of the Legislature in passing § 209(2) and (3), and the meaning of the term “residential” a used in the statute. As we have stated before, our primary purpose in construing statutes is to give controlling effect to the legislative intent, looking first to the plain meaning of the words used in the statute. Merlin Myers Revocable Trust v. Yellowstone Co., 2002 MT 201, ¶ 19, 311 Mont. 194, ¶ 19, 53 P.3d 1268, ¶ 19. Section 76-2-209(2), MCA, states that the Board may reasonably condition or prohibit concrete and asphalt batching operations “on a site that is located within a geographic area zoned as residential, as defined by the board of county commissioners.” Under § 209(3), “in all zones other than residential” the Board “may reasonably condition, but not prohibit” such operations. In other words, if the District is considered zoned “other than residential,” under § 209(3) the Board may only reasonably condition Tutvedt’s operation. In this case that would mean that the Board must allow Tutvedt to operate concrete and asphalt batch plants. On the other hand, if the District is considered “residential” within the meaning of § 209(2), the Board has the authority to prohibit Tutvedt’s operation outright. In that case, a limited gravel extraction with a prohibition on asphalt and batch plants would be within the Board’s lawful authority.
¶76 The American Heritage Dictionary defines “residential” as “[o]f, suitable for, or limited to residences: residential zoning.” American Heritage Dictionary of the English Language 1483 (4th ed. Houghton Mifflin 2000). In light of the dispute before the Court, this definition is of little help. In fact, it reproduces precisely the opposing arguments before the Court. On the one hand, Citizens and the Board argue that “residential” refers to an area that is “[o]f, [or] suitable for” residences. On the other hand, Tutvedt argues that “residential” refers to areas that are “limited to residences.” The plain meaning of the term “residential” could reasonably support the arguments of both parties.
¶77 However, the lack of a conclusive definition of “residential” here does not necessarily compel us to go beyond the plain meaning of the statute. Here, the statute conditions whether a geographical area is zoned “residential” on the definition given that zone by the board of county commissioners. In other words, if the Commissioners have indicated that the District is “residential,” we need not go beyond the plain language of the statute.
¶78 A review of the Regulations and the Plan itself shows that the Commissioners have zoned the District as “residential” within the meaning of § 209(2). Even though the District embraces residential, agricultural, and silvicultural uses, both the Plan and the Regulations themselves show that the primary purpose in rezoning the District was to regulate residential development and to maintain the suitability of residences, alongside other uses which have been traditionally practiced in the West Valley area. We agree with the District Court that § 209 does not require a zone be denominated solely “Residential,” for § 209(2) to apply. Since Tutvedt produces no evidence beyond the plain language of the statute in support of its argument concerning its interpretation of § 209, we decline to adopt Tutvedt’s construction of that statute.
¶79 In cases such as this where non-traditional, uniquely zoned, multi-use geographical areas like the District are under consideration, a determination of whether a geographic area is zoned “residential” for purposes of § 209 must be based on facts and circumstances. Here, the regulations and the Plan demonstrate that the District has been specifically zoned to promote and regulate residential use, and is a “residential” district for purposes of § 209.
¶80 As noted above at ¶ 5, the Regulations define the District as “[a] district to promote orderly growth and development in the West Valley area consistent with the community vision statements as expressed by the text and map exhibits of the West Valley Neighborhood Plan, County Resolution #1226-A.” We agree with Citizens that the “growth and development” in this definition refers primarily to residential development. A review of the Plan itself confirms this view. In the first instance, it is difficult to overlook the significance of calling the Plan a “neighborhood” plan, and by referencing this “neighborhood” plan in the definition of the District itself. Further, as noted above at ¶ 3, a simple “Residential” designation was not placed on the District because such a designation would not capture the unique residential qualities of the District itself. As the Plan itself notes, “[t]he uniform application of a single zoning district to such a large area fails to recognize the variability of land features throughout the district. Not all the land can easily be classified as either ‘timber’ or ‘agriculture’, especially when considering how the land use character of the area has changed dramatically, even with zoning in place. The liberal use of subdivision exemptions (family transfers, occasional sales) over the past 17+ years has created a suburban development pattern in many locations.”
¶81 That residential development is at the center of the Plan and the definition of the District itself, is confirmed by considering the vision statements, goals, and policies contained with the Plan itself. All of the goals and policies are centered primarily around residential concerns. See ¶ 4. The “Implementation” section of the Plan further demonstrates that the overarching goals in devising a land use strategy in the District were primarily residential. As the Plan states, “[t]he top four reasons for choosing to live or own property in the West Valley are: rural setting; lots of open space; low crime rate; and easy commute.” Clearly, then, the central focus of the Plan is the maintenance of a livable, residential area. Indeed, although agricultural and silvicultural uses are discussed in the Plan, and their preservation is encouraged, the Plan also recognizes these uses may be subordinated to residential demands at some point in the future. For instance, under the “Agriculture/Forestry Policies” section of the Plan, it specifically encourages the development of residential uses on “ ‘poor soils’ within a larger agricultural district, farm, or forest land or when public pressures no longer make farming or forestry feasible.” In total, roughly five pages of the Plan are devoted to either agricultural or silvicultural issues, while roughly twenty pages of the Plan discuss issues related to “residential” concerns, including residential development, limiting industrial and commercial uses, open space, transportation, utilities, emergency services, and schools.
¶82 Also instructive in this regard are the Regulations themselves. A review of the Regulations in § 3.34 shows an almost exclusive concern for the orderly development of residential uses throughout the West Valley. As Citizens point out, § 3.34 regulates a variety of aspects pertaining to residential use such as standards relating to: the construction of dwellings; future subdivision development; residential clustering; operation of a neighborhood convenience store; and the operation of home-based businesses. Although it is true that strictly residential uses are not the only ones permitted in the District, that is true even in those zoning districts designated explicitly “Residential.” We agree with Citizens that a reading of the District’s Regulations shows that they were designed primarily to effectuate a residential zone.
¶83 The case at bar is distinguishable from Merlin Myers on which Tutvedt relies. In that case, there was an area zoned Agricultural-Open Space in which residences, a school, and a public park were located. A property owner within that area sought to establish a gravel mining operation, similar to the one Tutvedt applied for here. A report prepared for the Yellowstone County Board of County Commissioners indicated that the county could not prohibit such operations under Montana law. Ultimately, the Yellowstone Commissioners rejected the property owner’s application stating that “permitting the application would violate the Montana Constitutional rights of students at [a neighboring school] to a clean, healthful and safe environment.” Merlin Myers, ¶ 8 (alteration in original).
¶84 The applicant challenged the Yellowstone Commissioners decision to the District Court, advancing an argument very similar to the one here. The applicant argued “that under §§ 76-1-113 and 76-2-209, MCA, local planning boards may not prevent the operation of a gravel facility in a nonresidential area.” Merlin Myers, ¶ 14. The District Court agreed with the applicant, and overturned the decision of the Yellowstone Commissioners. On appeal, we affirmed the District Court. We held that the Yellowstone Commissioners could not ignore the plain language of § 209, and refuse to comply with its requirements simply because they thought it violated the right to a clean and healthful environment under Art. II, § 3 and Art. IX, § 1 of the Montana Constitution. Merlin Myers, ¶ 22. In that case, the zoned character of the area was never in dispute. The issue instead was whether the Yellowstone Commissioners could ignore the plain language of the statute when they thought it violated the Montana Constitution. We held they could not.
¶85 Tutvedt’s attempts to apply Merlin Myers in the instant case are unavailing. Here, the dispute centers upon whether the District is residential for purposes of § 209; an issue not raised or discussed in Merlin Myers. Moreover, the statutes in the two cases differ considerably. In Merlin Myers, we considered the pre-2005 version of § 209, which simply stated that gravel mining in residential areas could be subject to county zoning regulations, while gravel mining in non-residential areas could not. Merlin Myers, ¶¶ 15-16. The controlling version of § 209 in the case at bar subjects all gravel operations to zoning regulations, but gives counties the authority to actually prohibit gravel operations “within a geographic area zoned as residential, as defined by the board of county commissioners.” Section 76-2-209(2), MCA. The current version of § 209 clearly instructs boards and reviewing courts to look to the definitions given by the boards of county commissioners in making the threshold determination as to whether a geographic area is zoned residential.
¶86 Although we agree with Tutvedt that the Board never made a specific determination that the District was “residential,” we affirm the District Court’s grant of summary judgment in this case because an explicit finding on this matter by the Board was not required as a matter of law. In fact, a determination by the Board one way or the other on this issue was immaterial, because under the plain language of the statute, only the definition given to the zoning district by the Commissioners is dispositive.
¶87 We decline Tutvedt’s invitation to read § 209(2) in a manner requiring an area be zoned “Residential” with a capital “R” in order for § 209(2) to apply, as to do so would ignore the statute’s directive to look primarily towards the definition given to a geographic area by the board of country commissioners. While there may be cases in which the definition given by the board of county commissioners is hard to discern, this is not one of them. The Regulations and the Plan speak for themselves in this case, and demonstrate convincingly that the District was defined as “residential” by the Commissioners, even though the District permits other uses. Accordingly, the authority of the Board falls within the § 209(2), and it may completely prohibit concrete and asphalt batching operations in the District.
¶88 Because we find that the Board had the authority to prohibit asphalt and concrete batch plant operations, we do not reach Citizens’ argument that § 76-2-209, MCA, is unconstitutional as applied in this case.
CONCLUSION
¶89 For the foregoing reasons, we affirm the District Court’s conclusion that the Board had the power to prohibit asphalt and concrete batch plant operations under § 76-2-209, MCA. We reverse the District Court’s conclusion that the Board did not abuse its discretion in issuing the CUP, and remand this case to the District Court for further proceedings consistent with this opinion.
CHIEF JUSTICE GRAY, JUSTICES NELSON, LEAPHART, WARNER, MORRIS and RICE concur.
Reproduced infra at ¶ 70.
Reproduced infra at ¶ 39.
We note that the Board does have the power to grant a variance in situations where the literal enforcement of zoning regulations would result in “unnecessary hardship.” Section 76-2-223(l)(c), MCA. Tutvedt never sought a zoning variance in this case, so the Board is bound to follow the Regulations.
FCZR § 4.10.10 states as follows” “Requirements contained in this section shall not exempt the owner or operator of an extractive industry from compliance with the Montana Opencut Mining Act... but shall be in addition to the requirements of said act. Prior to the approval by the Board of a conditional use permit, a reclamation contract shall be signed and approved by the owner or operator and the Montana Department of Natural Resources.” Under the applicable version of the statute, the DEQ administers such contracts. §§ 82-4-403(3) and 421, MCA (2005.)
An example of a more traditional designation for a residential zone would be “R-1 Suburban Residential.” See PCZR § 3.09.
Consideration of a growth policy or a master plan may not be appropriate in all cases to determine whether a zoning district is “residential.” In this case it is because the Regulations specifically define the District with reference to the community vision statements provided in the Plan.
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Frank Robinson appeals his conviction in the Twenty-First Judicial District Court, Ravalli County, of two counts of felony assault, failure to register as a sexual offender, and resisting arrest
¶2 We restate and address the issues on appeal as follows: Issue' 1: Did the District Court abuse its discretion when it denied Robinson’s challenge for cause to a prospective juror? Issue 2: Did the District Court impose an illegal sentence on Robinson when it imposed sentences both for his offenses and because he is a persistent felony offender?
¶3 The State charged Robinson with three felony counts of assault on a peace officer, in violation of § 45-5-210, MCA, one felony count of failure to register as a sexual offender, in violation of § 46-23-504, MCA, and one misdemeanor count of resisting arrest, in violation of § 45-7-301, MCA. The charges arose from an altercation that occurred when Ravalli County Sheriffs Deputies served Robinson with a California arrest warrant. The State timely filed notice of its intent to seek to have Robinson sentenced as a persistent felony offender
¶4 Trial commenced on July 18, 2005. After the prosecutor had completed his voir dire, during which he explained to the venire panel that Robinson was presumed innocent until proven guilty, defense counsel asked the entire panel whether “they kind of think he’s probably guilty since he’s sitting here?” The following colloquy ensued:
DEFENSE COUNSEL: Does anyone differ from that attitude; that they kind of think he’s probably guilty since he’s sitting here? Anybody? Anybody want to be brave enough to weigh in on that?
PROSEPECTIVE JUROR: I would assume.
DEFENSE COUNSEL: I’m sorry?
PROSPECTIVE JUROR: Well, it would look that way.
DEFENSE COUNSEL: It appears to you he’s probably guilty because he’s sitting there.
PROSPECTIVE JUROR: Yeah.
DEFENSE COUNSEL: Are you in agreement with the concept of innocent until proven guilty?
PROSPECTIVE JUROR: Well, yes, I am.
DEFENSE COUNSEL: Are you assuming he’s innocent now or are you not?
PROSEPCTIVE JUROR: Well, it would seem rather strange to assemble all these people if there was not some reason for him to be sitting there.
DEFENSE COUNSEL: So in that sense, are you sort of assuming he’s guilty before you hear the evidence?
PROSPECTIVE JUROR: Yeah.
DEFENSE COUNSEL: Okay. Do you think it’s going to be real hard for you to be impartial?
PROSPECTIVE JUROR: Well, no, not when I hear both sides of the story, but you know, that’s what trials are about is bringing in someone that they pretty well know is guilty of something, and then having a couple lawyers battle back and forth with words for a couple, two or three days, trying to decide-or trying to convince the jury of their point of view.
DEFENSE COUNSEL: Fair enough, and I-
PROSPECTIVE JUROR: You know, you’ve got two sides here, he can say his side and the law enforcement can say their side and we can decide.
DEFENSE COUNSEL: Fair enough. And I don’t want to pick on you, because I respect your opinion, but do you think maybe you’re not fully incorporating the idea of innocent until proven guilty in this case?
PROSPECTIVE JUROR: Well, that could be.
DEFENSE COUNSEL: Do you feel maybe in some respect you are presuming he’s guilty?
PROSPECTIVE JUROR: Yeah.
DEFENSE COUNSEL: Do you think this maybe isn’t the best trial for you then?
PROSPECTIVE JUROR: Well, no, because I sat through another one with the same attitude, but—
DEFENSE COUNSEL: Let’s put that one aside.
PROSPECTIVE JUROR: Okay.
DEFENSE COUNSEL: Since you’ve already-and I do appreciate your candor. You’ve already told the Court that you’re really not going into this case with an attitude of impartiality and you’re not really going in with the idea of innocent until proven guilty, that maybe-maybe it’s not entirely fair for Mr. Robinson to have you on the jury?
PROSPECTIVE JUROR: Well, that could be, but I kind of wonder how many other people just figure he’s guilty because he’s here, too.
DEFENSE COUNSEL: Well, that may be, but you are the one who has been candid enough to say so.
PROSPECTIVE JUROR: Right.
DEFENSE COUNSEL: On those grounds, I’d ask for [Ms. P] to be excused.
THE COURT: Cross?
PROSECUTOR: I’ve been through this now with several individuals, and I know that part of the difficulty, I think. You’ve got some suspicions because of what you heard so far. There’s no getting around the charges here, failure to register as a sexual offender and that sort of thing.
PROSPECTIVE JUROR: No, that’s not really what’s-well, the assault thing, I mean, obviously, if somebody was beat up on, they’re going to be upset about it and they’re going to bring suit
PROSECUTOR: I can fairly tell you that there’s no other suits that are-
PROSPECTIVE JUROR: Involved. Yeah, I realize that now.
PROSECUTOR: The [sic] there’s nothing hidden here. The only trial right now or lawsuit is the one that you’re presently involved in.
PROSPECTIVE JUROR: I understand that.
PROSECUTOR: The reason I’m concerned, [Ms. P], because of the difficulty of the charges, as I mentioned to [Ms. J] before she was excused—
PROSPECTIVE JUROR: No, that’s not what’s bothering me. It’s just the fact that the assault charges, okay, somebody was hurt and upset about it so they got him here on trial, because they were hit or slugged or threatened or something.
PROSECUTOR: The real questions that I think that you’re going to have to decide in this trial if you’re on the jury, [Ms. P], is whether or not police officers were assaulted by Mr. Robinson. He’s going to defend that, Mr. Stevenson is going to defend that vigorously.
PROSPECTIVE JUROR: Right, I realize that.
PROSECUTOR: All we’re asking is, despite your suspicions, if you please, do you think that you are willing to listen to all of the evidence, both sides-
PROSPECTIVE JUROR: Yes, I can do that.
PROSECUTOR:-before you confirm your suspicion that Mr. Robinson may be guilty.
PROSPECTIVE JUROR: I can do that.
PROSECUTOR: You understand that he’s not guilty just because he’s sitting there.
PROSPECTIVE JUROR: No, but I’m not sitting there.
* * * *
THE COURT: Now, [Ms. P], in your mind, do you understand the difference between probable cause and beyond a reasonable doubt?
PROSPECTIVE JUROR: Yes.
THE COURT: And so you understand that a person could be put on trial merely on a finding that there’s probable cause that they may have committed an offense?
PROSPECTIVE JUROR: Yes.
THE COURT: And that’s basically a reasonable suspicion.
PROSPECTIVE JUROR: (Witness nods head.)
THE COURT: And then it’s up to the jury to decide if the State has proven beyond a reasonable doubt that they actually did commit the offense.
PROSPECTIVE JUROR: Yes.
THE COURT: And you acknowledge that there are people put on trial who are found not guilty by juries?
PROSPECTIVE JUROR: Oh, yes.
THE COURT: And there are people that are either accused falsely or accused of something in excess of what they actually did.
PROSPECTIVE JUROR: Yes, unfortunately.
THE COURT: So you’re not presuming that he is guilty?
PROSPECTIVE JUROR: No, but there’s reasonable cause.
THE COURT: Well, probable cause.
PROSPECTIVE JUROR: Probable cause.
THE COURT: But you’re prepared to hold [the prosecutor] to his burden of proof to prove beyond a reasonable doubt that he committed what he’s charged with?
PROSPECTIVE JUROR: Yes, sir.
THE COURT: And if [the prosecutor] fails to prove beyond a reasonable doubt that he committed one or more of these offenses, then you would be willing to return a not guilty verdict on those charges?
PROSPECTIVE JUROR: Right.
THE COURT: And you don’t hold any personal bias against Mr. Robinson.
PROSPECTIVE JUROR: No, I don’t know the man.
THE COURT: And you will follow the jury instructions as best you can?
PROSPECTIVE JUROR: Yes.
¶5 Robinson subsequently used a peremptory challenge to remove the juror and also exercised all of his peremptory challenges. The District Court dismissed one count of assault on a peace officer at the conclusion of the State’s case. The jury found Robinson guilty of the remaining charges.
¶6 The District Court held a sentencing hearing on September 21, 2005. The District Court concluded that Robinson was a persistent felony offender. Robinson has not challenged that designation. The District Court sentenced Robinson to ten years in prison on Count One, assault on a peace officer, with an additional, consecutive, ten year prison term as a persistent felony offender; ten years in prison on Count Two, assault on a peace officer, with an additional, consecutive ten year prison term as a persistent felony offender. The sentences on Counts One and Two were ordered to run concurrently with each other, resulting in a total sentence of twenty years for assault on a peace officer. Robinson was sentenced to five years in prison for failure to register as a sexual offender, with an additional five year sentence as a persistent felony offender. These latter two sentences were ordered to run consecutive to each other and consecutive to the twenty years in prison imposed for assault on a peace officer. The District Court also sentenced Robinson to six months in jail for resisting arrest, to run concurrently with the other sentences. These sentences resulted in a judgment requiring Robinson to serve a total of thirty years in prison. Robinson now appeals
¶7 We review a district court’s denial of a challenge for cause to a prospective juror for abuse of discretion. State v. Golie, 2006 MT 91, ¶ 6, 332 Mont. 69, ¶ 6, 134 P.3d 95, ¶ 6. If a district court abuses its discretion in denying a challenge for cause, the defendant uses a peremptory challenge to remove the juror, and also uses all of his peremptory challenges, we will reverse the judgment and order a new trial. State v. Heath, 2004 MT 58, ¶ 7, 320 Mont. 211, ¶ 7, 89 P.3d 947, ¶ 7.
¶8 A defendant may challenge a prospective juror for cause if the juror “ha[s] a state of mind in reference to the case ... 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. To determine whether a juror must be excused for cause, courts must examine both the statutory language and the totality of the circumstances in a given situation. Heath, ¶ 16. If voir dire examination of a prospective juror raises serious doubts about the juror’s ability to be fair and impartial, the juror should be removed. Golie, ¶ 8
¶9 A district court should excuse a prospective juror for cause if he or she has a fixed opinion of a defendant’s guilt before trial begins. State v. DeVore, 1998 MT 340, ¶ 21, 292 Mont. 325, ¶ 21, 972 P.2d 816, ¶ 21, overruled on other grounds, State v. Good, 2002 MT 59, ¶ 63, 309 Mont. 113, ¶ 63, 43 P.3d 948, ¶ 63. In DeVore, we concluded that two jurors should have been excused for cause because they repeatedly stated they assumed the defendant was “guilty of something” and they could not suspend that belief. DeVore, ¶¶ 18-19. Similarly, where a juror agreed with defense counsel that she would have a hard time with the presumption of innocence and gave weight to the simple fact that defendant was charged with a crime, the district court erred when it did not excuse the juror for cause. State v. Hausauer, 2006 MT 336, ¶ 28, 335 Mont. 137, ¶ 28, 149 P.3d 895, ¶ 28
¶10 In contrast, if a prospective juror merely expresses some concern about remaining impartial, but believes he can lay aside any concerns and fairly weigh the evidence, the district court is not required to remove the juror for cause. State v. Falls Down, 2003 MT 300, ¶¶ 27, 30, 32, 318 Mont. 219, ¶¶ 27, 30, 32, 79 P.3d 797, ¶¶ 27, 30, 32. See also State v. Marble, 2005 MT 208, ¶¶ 20-21, 328 Mont. 223, ¶¶ 20-21, 119 P.3d 88, ¶¶ 20-21 (concluding that a juror did not need removed for cause, even though he had strong religious beliefs about the charges at issue, because he consistently stated that he would follow the law and fairly weigh the evidence).
¶11 This Court typically gives weight to a prospective juror’s spontaneous statements because they are most likely to be reliable and honest. DeVore, ¶ 28. A district court should not attempt to rehabilitate jurors whose spontaneous statements demonstrate bias by putting jurors in a position where they will not disagree with the court. Good, ¶ 54. Coaxed recantations in which jurors state they will merely follow the law, whether prompted by the trial court, the prosecution, or the defense, do not cure or erase a clearly stated bias which demonstrates actual prejudice against the substantial rights of a party. State v. Freshment, 2002 MT 61, ¶ 18, 309 Mont. 154, ¶ 18, 43 P.3d 968, ¶ 18. Still, a district court may ask questions to clarify a juror’s statements and better understand whether the juror is biased or not. Heath, ¶ 29.
¶12 Based on the totality of the circumstances shown by the questions and answers of the prospective juror in this case, as noted above, we cannot conclude as a matter of law that the District Court abused its discretion when it denied the challenge for cause. She repeatedly stated that she understood that Robinson was presumed innocent and said she could, and would, be impartial.
¶13 As in DeVore and Hausauer, the prospective juror made some comments that suggested she was struggling with the presumption of innocence. She presumed there was some reason to suspect him and put him on trial, or a jury would not have been called. This is a reasonable and logical reaction to being called for jury duty and subjected to voir dire. However, unlike the prospective jurors in DeVore and Hausauer, who stated they could not suspend their presumption the defendant was guilty of something, the prospective juror in this case repeatedly told counsel and the judge that she understood Robinson might be innocent. She did not express a fixed opinion about Robinson’s guilt, but merely stated that the fact he was on trial gave her some doubts about his innocence. As we concluded in Falls Down, a juror need not be excused for cause simply for raising some concerns about a defendant’s innocence, as long as the District Court reasonably concludes the juror is able to lay aside such concerns. When a juror makes conflicting statements, as in this case, the decision whether to grant a challenge for cause is within the discretion of the trial judge, who has the ability to look into the eyes of the juror in question, and to consider her responses in the context of the courtroom, and then determine whether serious doubts exist about the juror’s ability to be impartial. See State v. Wright, 2002 MT 275, ¶ 14, 312 Mont. 352, ¶ 14, 59 P.3d 432, ¶ 14.
¶14 The trial judge’s questions in this case did not lead to a coaxed recantation of a bias as in Freshment. See Freshment, ¶ 18. In contrast to both Freshment and Good, the District Court here did not place the juror in a position where she simply agreed to follow the law despite a bias. Instead, the District Court judge, as in Heath, clarified her answers and explained the concept of probable cause as a basis for charging someone with a crime. In this instance, the judge appropriately questioned the prospective juror and discussed her answers with her. We conclude the District Court did not abuse its discretion when it denied Robinson’s challenge for cause to the prospective juror
¶15 This Court reviews a criminal sentence for its legality. If a sentence falls within the statutory parameters, it is legal. State v. English, 2006 MT 177, ¶ 55, 333 Mont. 23, ¶ 55, 140 P.3d 454, ¶ 55. We grant trial judges “broad discretion to determine the appropriate punishment.” State v. Ford, 278 Mont. 353, 364, 926 P.2d 245, 251 (1996) (internal quotation omitted).
¶16 When the District Court designated Robinson a persistent felony offender, he became subject to the sentencing provisions of § 46-18-502, MCA, which provides that an offender “shall be imprisoned in a state prison for a term of not less than 10 years or more than 100 years.” Section 46-18-502(2), MCA. The sentencing statute for persistent felony offenders replaces the maximum sentence for an offense, rather than creating a sentence that is imposed in addition to the offense. State v. Fitzpatrick, 247 Mont. 206, 208, 805 P.2d 584, 586 (1991). Thus, a district court exceeded the maximum legal sentence when it imposed not only a sentence of ten years, but also imposed an additional 100 year sentence because the defendant was designated a persistent felony offender. Fitzpatrick, 247 Mont. at 207, 805 P.2d at 585
¶17 In contrast, a district court does not impose an illegal sentence if a persistent felony offender’s sentence falls below the maximum sentence provided. State v. Gunderson, 282 Mont. 183, 188, 936 P.2d 804, 806-07 (1997), overruled on other grounds, State v. Montoya, 1999 MT 180, ¶ 15, 295 Mont. 288, ¶ 15, 983 P.2d 937, ¶ 15. In Gunderson, the court imposed a twenty year term for the offense as well as ten years for the defendant’s persistent felony offender status. Gunderson argued this violated the rule announced in Fitzpatrick because the court imposed a separate sentence upon him as a persistent felony offender. However, we concluded that his sentence was legal because it fell within the statutory limits. Gunderson, 282 Mont. at 188, 936 P.2d at 806-07.
¶18 Robinson, relying on Fitzpatrick, argues that his sentence is illegal because sentences as a persistent felony offender are imposed in addition to the sentences for the offenses themselves. Robinson is correct that the District Court did impose sentences for being a persistent felony offender on top of those for assault on a peace officer and failure to register as a sex offender. However, the sentences imposed, in total, are well below the maximum provided for by § 46-18-502(2), MCA. We conclude Robinson’s sentences are not illegal because, in total, they are within statutory parameters.
CONCLUSION
¶19 The District Court did not abuse its discretion when it denied Robinson’s challenge for cause to a prospective juror, and it did not impose an illegal sentence.
¶20 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, NELSON and RICE concur.
It is not an issue in this case, and we express no opinion, whether the maximum persistent felony offender sentence could have been imposed for each felony Robinson was found to have committed.
|
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Richard Gillingham appeals from a judgment in the Fourth Judicial District, Missoula County, revoking his suspended sentences and sentencing him to serve forty-five years at Montana State Prison.
¶2 We determine that the following two issues are dispositive of this appeal:
¶3 1. Did the District Court err in revoking Gillingham’s suspended sentences because he refused to sign a document in which he waived extradition from Canada, when the judgment suspending his sentence did not contain such a requirement?
¶4 2. Did the State present sufficient evidence at the hearing to revoke Gillingham’s suspended sentences?
BACKGROUND
¶5 On October 14, 1992, the State filed an Amended Information charging Gillingham with nine counts of sexual assault on minors, in violation of § 45-5-502, MCA, and one count of assault on a minor, in violation of § 45-5-201, MCA. All of the offenses were alleged to have occurred in 1991 and 1992. On April 7,1993, Gillingham pled guilty to four counts of sexual assault and one count of assault on a minor, all felonies. The remaining counts were dismissed.
¶6 On August 6,1993, the District Court sentenced Gillingham to ten years on each count, with the sentences to be served consecutively. The sentences were suspended on conditions. The District Court entered its written judgment that same day. Gillingham, a Canadian citizen, was deported to Canada, where he faced separate charges.
¶7 The District Court’s judgment placed Gillingham under the supervision of the Department of Corrections. Section 46-23-1011(2), MCA (1991), required that he sign a copy of the conditions of probation. Gillingham was deported before he signed a writing containing the conditions of his suspended sentences. His Montana probation officer, Jan Ullom, eventually contacted Gillingham’s Canadian probation officer and sent him a document entitled “Rules of Probation” with the request that Gillingham sign it. This document not only listed the conditions included in the District Court’s judgment, but also included an additional condition requiring Gillingham to waive extradition from Canada. Gillingham was presented with the document, but repeatedly refused to sign the rules of probation containing the extra condition. In 1996, the State filed a petition to revoke Gillingham’s suspended sentences because of his refusal to sign.
¶8 On January 16, 1998, the State filed a supplemental petition to revoke, alleging three additional violations of the conditions of his suspended sentences.
¶9 In the supplemental petition to revoke, the State alleged a violation of Condition 6: “That the Defendant shall not have any unsupervised contact with any children under the age of 16 years of age.” Gillingham was alleged to have taught Sunday school classes to children while unsupervised on November 2, 1997.
¶10 The State next alleged a violation of Condition 7: “That the Defendant shall not involve himself in any type of employment, service, or recreational pursuits which involves [sic] the supervision of children 16 years of age or under [and] shall not be in any position of power or authority over children, including any volunteer work.” This alleged violation was based on information that Gillingham taught woodworking to children at a fair in British Columbia in September 1997.
¶11 Finally, the State alleged in the supplemental petition to revoke that Gillingham violated Condition 9: “That the Defendant shall not use any name but the name the Defendant is currently using of Richard Gillingham.” This allegation was based on information that Gillingham had applied for a birth certificate for a deceased person, admitted to Canadian authorities that he was attempting to establish a new identity, and had been convicted in the Canadian criminal courts of the offense of personation.
¶12 A bench warrant was issued for Gillingham’s arrest. He challenged his extradition in the Canadian and United States federal courts. It was not until late 2004 that the extradition proceedings concluded, and he was delivered into the custody of the Missoula County Sheriff. On August 30, 2005, the District Court held an evidentiary hearing on the State’s petition to revoke Gillingham’s suspended sentences.
¶13 At the hearing, Ms. Ullom testified to Gillingham’s refusal to sign the rules of probation. She also testified that he had violated Condition 9 of his suspended sentences by attempting to obtain a Canadian birth certificate containing the name of a different person. A copy of a document stating Gillingham had been found guilty of personation was entered into evidence. The State did not present any evidence concerning the elements of the offense of personation.
¶14 The State presented two witnesses to prove the violation of Condition 6. The Anglican Parish Priest from the church where Gillingham taught Sunday school and his wife both testified that Gillingham taught a church school class to young children in a basement room separate from the other classes.
¶15 The State did not produce a witness to testify about Gillingham’s volunteer activities teaching woodworking classes at a fair in September 1997. Even though the District Court dismissed the allegation that Gillingham had violated Condition 7 on motion of the State, it later found that Gillingham’s teaching church school violated the last sentence of Condition 7, which prohibited Gillingham from being in a position of power or authority over children. However, the District Court also stated that its finding under paragraph seven was not a condition of its ultimate decision.
¶16 The District Court found that Gillingham had violated the requirement of his suspended sentences that he sign a document containing the rules of his probation. It also found that he had violated Condition 6 of his suspended sentences requiring that he not have any unsupervised contact with any children under the age of 16 years of age, and that he violated Condition 9 requiring that he not use any name other than Richard Gillingham. Based on these findings, the District Court revoked Gillingham’s suspended sentences and sentenced him to forty-five years at Montana State Prison, and ordered that he not be eligible for parole. Gillingham appeals the order revoking his suspended sentences.
STANDARD OF REVIEW
¶17 We review the revocation of a suspended sentence to determine whether it was supported by a preponderance of the evidence and whether the District Court abused its discretion. State v. Nelson, 1998 MT 227, ¶ 16, 291 Mont. 15, ¶ 16, 966 P.2d 133, ¶ 16. However, where a defendant presents a question of law related to constitutional rights, our review is plenary. State v. Finley, 2003 MT 239, ¶ 10, 317 Mont. 268, ¶ 10, 77 P.3d 193, ¶ 10.
DISCUSSION
ISSUE ONE
¶18 Did the District Court err in revoking Gillingham’s suspended sentences because he refused to sign a document in which he waived extradition from Canada, when the judgment suspending his sentence did not contain such a requirement?
¶19 A criminal sentence may not deprive a defendant of rights except as specifically enumerated by the sentencing judge as a necessary condition of the sentence. Section 46-18-801(1), MCA. Only the sentencing judge has the power to impose probation conditions that affect a defendant’s rights, and without statutory authority to do so, the Department of Corrections cannot add conditions to those articulated in a district court’s judgment. State v. Field, 2000 MT 268, ¶ 15, 302 Mont. 62, ¶ 15, 11 P.3d 1203, ¶ 15.
¶20 The State concedes that the copy of the rules of probation Gillingham was asked to sign contained a condition not in his written judgment: the requirement that he waive extradition from Canada. At the time the charged offenses were committed, and at the time the sentences were imposed, the Department of Corrections had the authority to require that a probationer sign a copy of the conditions of probation. However, the Department did not have the authority to add to conditions of probation the requirement that a probationer waive extradition. Section 46-23-1011(2) (1991). Thus, under the circumstances of this case, the District Court had no authority to revoke Gillingham’s suspended sentences because he refused to sign a copy of the conditions of his probation that contained a provision it did not impose. In this instance, we conclude that the District Court erred in revoking Gillingham’s suspended sentences based on his refusal to sign the rules of probation presented to him.
ISSUE TWO
¶21 Did the State present sufficient evidence at the hearing to revoke Gillingham’s suspended sentences?
¶22 The State must prove that a defendant has violated the terms of his probation by a preponderance of the evidence. Section 46-18-203(6), MCA.
¶23 The District Court found that Gillingham violated Condition 6, “That Defendant not have any unsupervised contact with any children ■under the age of 16 years of age,” because he was unsupervised while teaching a Sunday school class on November 2,1997. Gillingham does not contest that he made arrangements to teach young children. He argues that there is no evidence that he was unsupervised when he was teaching on November 2, 1997, and thus the District Court erred in finding he violated Condition 6.
¶24 The State presented the testimony of Reverend Gray, who was the priest at Saint Stephens Anglican Church in Summerland, British Columbia, Canada on November 2, 1997. Reverend Gray testified Gillingham offered himself as a church-school teacher late in the summer of 1997. Prior to November 2, 1997, Gillingham taught children in a hall-setting where there were two or three classes in the same room. Gillingham asked to move his class, and only his particular class, to a downstairs room at the end of a hallway.
¶25 Kathleen Gray, Reverend Gray’s wife, was the supervisor of the church school. She testified that Gillingham made arrangements with her to move his class of young boys to a small room downstairs in the church on November 2, 1997. She said on that day she went to where he was teaching and was able to hear him inside the room with four boys eight to ten years old. She said that there was no other adult in the room and there was no question in her mind that he was alone in the room with the children. On cross-examination she testified that she stood by for two or three minutes and heard Gillingham, and no other adult, speak. She also said that it was not possible that there was another adult in the room at the time. She said there was not another church-school teacher present.
¶26 The Montana Rules of Evidence do not apply to a probation revocation hearing. M. R. Evid. 101(c)(3). Nevertheless, a probation revocation hearing must be fundamentally fair. State v. Pedersen, 2003 MT 315, ¶ 20, 318 Mont. 262, ¶ 20, 80 P.3d 79, ¶ 20 (citing In re Meidinger, 168 Mont. 7, 15, 539 P.2d 1185, 1190 (1975)). Direct evidence establishes that on November 2, 1997, Gillingham had contact with four boys who were eight to ten years old in a small classroom in Saint Stephen’s Church, in Summerland, British Columbia. The evidence also establishes that Gillingham himself made arrangements to be with the boys in this place of relative isolation. Further evidence establishes that there was no other adult heard in the room at the time, and there were no other adults around that were likely to be supervising him. While there is no direct proof that Gillingham was alone in the classroom with the children, there is sufficient circumstantial evidence consistent with him being the only adult in the room to sustain the finding of fact made by the District Court that Gillingham was unsupervised at the time. The District Court did not err in finding that Gillingham violated Condition 6 of his suspended sentence.
¶27 The District Court also found a violation of Condition 9, “That the Defendant shall not use any name but the name the Defendant is currently using of Richard Gillingham.” The State’s proof of this violation is sparse. It consisted of Ms. Ullom’s testimony that he attempted to obtain a birth certificate in someone else’s name, and a copy of a judgment from an Ottawa, Ontario, Regional Municipal Court stating that Gillingham was found guilty of what is described therein as “Personation, Section 403(b) CCC - Indictment.” Gillingham argues that this is not enough to establish that he was using an assumed name in violation of Condition 9.
¶28 We need not determine whether the State presented sufficient evidence to establish a violation of Condition 9. A single violation of the conditions of a suspended sentence is sufficient to support a district court’s revocation of that sentence. State v. Rudolph, 2005 MT 41, ¶ 13, 326 Mont. 132, ¶ 13, 107 P.3d 496, ¶ 13. Gillingham’s violation of Condition 6 supports the revocation of his sentences.
¶29 Gillingham goes on to argue that the District Court did not afford him due process of law because it found that he violated Condition 7, that he not be in a position of power or authority over children, when he taught church school while unsupervised. He points out that the alleged violation of Condition 7 was that he volunteered to work with children at a fair. He claims he had no notice that his sentences could be revoked for violating Condition 7 based on his teaching at the church school. We also decline to consider this argument because, as noted above, the violation of Condition 6 is sufficient to revoke the suspended sentences.
CONCLUSION
¶30 The District Court’s order of January 19, 2006, revoking Gillingham’s suspended sentences is affirmed.
JUSTICES LEAPHART, COTTER, NELSON and MORRIS concur.
The authority to require that a probationer waive extradition for his return to Montana was added to § 46-23-1011(2), MCA, by the Fifty-Seventh Legislature in 2001. 2001 Mont. Laws 2436-37. However, a defendant must be sentenced under the law in effect at the time of the offense. State v. Tracy, 2005 MT 128, ¶ 16, 327 Mont. 220, ¶ 16, 113 P.3d 297, ¶ 16.
Also, the District Court stated that a violation of Condition 7 was not the reason Gillingham’s suspended sentences were revoked. Thus, even if there was error, it would be harmless. Pedersen, ¶ 21.
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CHIEF JUSTICE GRAY
delivered the Opinion of the Court.
¶1 Karsten Karl Smith (Smith) appeals from the judgment entered by the Fourth Judicial District Court, Missoula County, on his convictions for felony criminal possession of dangerous drugs and misdemeanor criminal possession of drug paraphernalia. We affirm in part and remand.
¶2 Smith raises the following issues on appeal:
¶3 1. Did the District Court err in denying Smith’s motion to suppress evidence?
¶4 2. Did the District Court err in denying Smith’s motion to dismiss the charges based on a violation of his right to a speedy trial?
BACKGROUND
¶5 On March 11,2002, probation and parole officer Kathleen Beccari (Beccari) met with probationer Mark Doman (Doman). At the time, Doman was living in Missoula, Montana, with his girlfriend Delores Shepherd (Shepherd). Shepherd’s sister, Darlene Garcia (Garcia), who also was on probation, was supposed to be living at the same residence with Doman and Shepherd. Doman informed Beccari that Garcia had not lived with them for several months and, instead, had been living with her boyfriend Smith in a trailer on the Pruyn Ranch. Beccari reported this information to Garcia’s probation officer, Tom Forsyth (Forsyth). Forsyth contacted Shepherd, who confirmed that Garcia had not lived with Doman and Shepherd for several months and was living with Smith. Forsyth met with Garcia the following day and Garcia admitted that, although she previously reported she lived with Doman and Shepherd, she actually was living with Smith on the Pruyn Ranch. Garcia then submitted to a drug test, which tested positive for methamphetamine, and she was arrested for violating the conditions of her probation. Based on the unreported change in residence and the positive drug test, Forsyth also determined a probation search of Garcia’s residence at the Pruyn Ranch was justified.
¶6 Later that day, Forsyth, Beccari, a third probation officer, and officers from the Missoula County Sheriffs Office accompanied Garcia to the Pruyn Ranch. Garcia indicated she was fearful of Smith’s reaction to a search of the trailer and stated she did not have a key to the trailer. The officers gained entry by prying open the trailer’s back door. Upon searching, the officers found weapons, drug paraphernalia, and items used to manufacture and distribute drugs. They also found Garcia’s purse and located some of her clothing in a closet.
¶7 After searching the trailer, the officers decided to apply for a search warrant to search a bus parked near the trailer. While they waited for the search warrant to arrive, Smith drove up to the trailer in a pickup truck. Based on the drug-related items found in the trailer, as well as one officer’s knowledge that Smith’s driver’s license was suspended, Smith was arrested. In a search of his person incident to the arrest, officers discovered a large amount of cash, a marijuana pipe and a vial which Smith admitted contained methamphetamine. The officers later obtained a search warrant for Smith’s truck and discovered a leather pouch containing nine bindles of methamphetamine. The search of the bus revealed chemical precursors to methamphetamine.
¶8 On April 16,2002, the State of Montana (State) charged Smith by information with felony criminal possession of dangerous drugs and misdemeanor criminal possession of drug paraphernalia. The State amended the information on June 10, 2002, to add a third charge of felony criminal possession of dangerous drugs with intent to distribute. Smith moved to suppress all evidence obtained in the searches. The District Court denied Smith’s motion to suppress on February 3,2003.
¶9 The District Court eventually scheduled a jury trial for August 11, 2004. In late June of2004, Smith moved to dismiss the charges against him on the basis that his constitutional right to a speedy trial had been violated. The District Court denied this motion. The court then vacated the trial setting without rescheduling the trial, and nothing further happened in this matter until the District Court ordered the parties to appear for a status conference on April 5, 2005. After several continuances of the status conference, the court scheduled the trial for November 9, 2005. On June 28, 2005, Smith again moved to dismiss the charges against him based on lack of a speedy trial. The District Court held a hearing and denied Smith’s motion. Subsequently, in February of2006, Smith appeared in the District Court and pled guilty to the offenses of criminal possession of dangerous drugs and criminal possession of drug paraphernalia pursuant to a plea agreement with the State, reserving his right to appeal the court’s denial of his pretrial motions. The District Court accepted Smith’s guilty pleas, sentenced him, and entered judgment on the convictions and sentences. Smith appeals.
DISCUSSION
¶10 1. Did the District Court err in denying Smith’s motion to suppress evidence?
¶11 Smith’s motion to suppress all the evidence seized during the searches in this case asserted that the initial warrantless search of his trailer was unlawful because it was not justified as a probation search or by any other exception to the search warrant requirement. As a result, according to Smith, the subsequent searches of his person, bus and pickup truck also were unlawful as emanating from the initial unlawful search of the trailer.
¶12 The District Court determined that Garcia’s unreported change in residence and positive drug test gave her probation officer, Forsyth, reasonable cause to conduct a probationary search of Garcia’s new residence, which was Smith’s trailer. The court further determined that Smith’s subsequent arrest, the search of his person pursuant to that arrest, and the searches of his vehicles pursuant to warrants all were lawful. Consequently, the District Court denied Smith’s motion to suppress evidence. Smith asserts error.
¶13 We review a district court’s ruling on a motion to suppress evidence to determine whether its findings of fact are clearly erroneous and its interpretation and application of the law correct. State v. Fritz, 2006 MT 202, ¶ 8, 333 Mont. 215, ¶ 8, 142 P.3d 806, ¶ 8.
¶14 The Fourth Amendment to the United States Constitution and Article II, Section 11 of the Montana Constitution guarantee an individual’s right to be free from unreasonable searches and seizures. It is well-established that a search conducted in the absence of a properly issued warrant based on probable cause is per se unreasonable absent a recognized exception to the warrant requirement. See e.g. State v. Copelton, 2006 MT 182, ¶ 10, 333 Mont. 91, ¶ 10, 140 P.3d 1074, ¶ 10 (citation omitted).
¶15 A search of a probationer’s residence or effects, however, may be conducted without a search warrant and pursuant to the lesser standard of “reasonable cause,” rather than probable cause. Fritz, ¶ 10; State v. Kriesel, 2000 MT 144, ¶ 12, 300 Mont. 44, ¶ 12, 2 P.3d 831, ¶ 12. The rationale for applying the lesser standard is that a probationer has a diminished expectation of privacy and a supervising probation officer is in a better position to determine the level of supervision necessary to provide rehabilitation to the probationer and safety to the community. Fritz, ¶ 10; Kriesel, ¶ 13. Determining the existence of reasonable cause to conduct a probationary search involves a factual inquiry based on the totality of the circumstances. Fritz, ¶ 10; Kriesel, ¶ 13.
¶16 Smith argues that the District Court’s finding that Forsyth had sufficient information on which to determine Garcia was living at Smith’s trailer on the Pruyn Ranch is clearly erroneous and cannot support the court’s further finding that Forsyth had reasonable cause to conduct a probationary search of the trailer. We disagree.
¶17 Garcia had been reporting to Forsyth that she resided with Shepherd and Dornan. On March 11, 2002, however, Dornan’s probation officer informed Forsyth that Dornan had stated Garcia was currently living with Smith at the trailer on the Pruyn Ranch. Forsyth then spoke directly with Shepherd, who confirmed that Garcia was no longer living with her and Dornan, but was living with Smith. Furthermore, Garcia met with Forsyth on March 12, 2002, and admitted she was living with Smith and had failed to inform Forsyth of her change in residence. Thus, Forsyth had first-hand information-including Garcia’s own admission-that Garcia was living with Smith and had changed her residence in violation of the conditions of her probation. We conclude the District Court’s finding of fact in this regard is not clearly erroneous.
¶18 In addition, Garcia provided a urine sample for drug testing at Forsyth’s request during their March 12 meeting. The drug test showed a positive result for methamphetamine use. Thus, Forsyth had the additional information that Garcia was using drugs in violation of her probation conditions, and reason to believe evidence of drugs and drug use might be found at her residence. We agree with the District Court that, under the totality of the circumstances-including Garcia’s unreported change of residence and positive drug test-Forsyth had reasonable cause to search Smith’s trailer on the Pruyn Ranch where Garcia currently was living. Thus, we further conclude that the search of Smith’s trailer was justified as a probationary search.
¶19 Smith also argues, however, that Forsyth’s probationary search of his trailer was unlawful because Forsyth failed to follow policies and procedures set by the Montana Department of Corrections Probation and Parole Bureau, in that Forsyth “failed to verify [Garcia] lived at the trailer, that she had Smith’s permission to live at the trailer and that Smith understood the implications of allowing [Garcia] to live in the trailer.” However, Smith fails to cite the specific policies and procedures he asserts were violated and fails to provide legal authority in support of his contention that a violation of such policies or procedures would render a probationary search unlawful. We do not address arguments which are not supported by citation to legal authority. See e.g. State v. Hicks, 2006 MT 71, ¶ 22, 331 Mont. 471, ¶ 22, 133 P.3d 206, ¶ 22; M. R. App. P. 12(l)(f).
¶20 Having determined that the search of Smith’s trailer was legally justified as a probationary search of Garcia’s residence, and absent any other challenge by Smith to the legality of the searches of his person and vehicles, we conclude the District Court did not err in determining these searches were lawful.
¶21 We hold that the District Court did not err in denying Smith’s motion to suppress evidence.
¶22 2. Did the District Court err in denying Smith’s motion to dismiss the charges based on a violation of his right to a speedy trial?
¶23 Smith moved the District Court to dismiss the charges against him on two occasions, asserting the State had violated his right to a speedy trial. The District Court denied both motions. In its second order denying Smith’s motion, the court observed that, although it found the length of delay in bringing the case to trial troubling, the State had met its burden of establishing the delay had not prejudiced Smith. Thus, the court determined Smith’s right to a speedy trial was not violated. Smith contends the District Court’s conclusion in this regard is erroneous.
¶24 On appeal, both Smith and the State analyze this speedy trial issue pursuant to the standards we originally set forth in City of Billings v. Bruce, 1998 MT 186, 290 Mont. 148, 965 P.2d 866. However, after the parties briefed this appeal, we rendered our decision in State v. Ariegwe, 2007 MT 204, 338 Mont. 442, 167 P.3d 815, in which we established a new framework for analyzing speedy trial claims. Thus, neither the District Court nor the parties had the opportunity to analyze the speedy trial issue under this new framework. We deem it appropriate that the District Court apply the Ariegwe analysis in the first instance. For that reason, we decline to resolve this issue and, instead, remand it to the District Court without prejudice to a timely appeal thereafter by either party.
¶25 Affirmed in part and remanded for further proceedings consistent with this opinion.
JUSTICES COTTER, WARNER and MORRIS concur.
|
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Carla Lammers appeals an order of the Thirteenth Judicial District Court, Yellowstone County, granting summary judgment in favor of the defendant Allstate Insurance Company. The District Court ruled that Lammers’ loss of personal property, which was destroyed in a fire, was not insured under her landlord’s insurance policy issued by Allstate.
¶2 We restate and address the issue on appeal as follows: Did the District Court err in ruling that the lessee, Lammers, could not recover from Allstate, which issued an insurance policy to her lessor?
¶3 Lammers formerly owned a commercial building in Hardin, Montana, known as the Solazzi Building. In January 2000, Lammers sold the building to Cory Kenney, who leased back a part of the building to Lammers. She used her leased space in the building for a variety of business enterprises, as well as storing personal belongings.
¶4 On July 26, 2001, a fire occurred at the Solazzi Building, which Lammers claims destroyed much of her property. Prior to the fire, the lessor, Kenney, had purchased a “Customizer Business Insurance Policy Special Form” insurance policy from Allstate which was in effect at the time of the fire.
¶5 The policy contains two types of coverage, Coverage A-Business Property and Coverage B-Business Liability. Under the Business Property section of the policy, describing the property it covers, the policy states:
Property Covered-Buildings
This policy covers the replacement cost (or the actual cash value, if such is indicated in the Declarations) of the building(s) for which a description and limit of liability is shown in the Declarations. This coverage includes the following items when on the same premises:
* * * *
6. Personal property in apartments or rooms you furnish as landlord.
¶6 Following the fire, Kenney sent a letter to Allstate requesting that it cover Lammers’ losses in the fire. Allstate did not explicitly deny coverage, nor did it pay any part of Lammers’ loss. Lammers then filed a complaint seeking damages from Allstate, as well as from several other defendants. Lammers subsequently filed a motion for partial summary judgment, claiming coverage under Kenney’s insurance policy with Allstate. Allstate filed a cross-motion for summary judgment, asserting Lammers had no coverage under its policy.
¶7 At the hearing on the motion for summary judgment, the District Court issued a ruling from the bench granting Allstate’s motion for summary judgment. The District Court noted the lack of clarity in the description of what personal property the insurance policy covered, because the language did not expressly state whether it covered only the insured’s personal property or also provided coverage for a tenant’s personal property. The District Court then denied Lammers’ motion for summary judgment and granted Allstate’s summary judgment motion, dismissing the claim against Allstate with prejudice.
¶8 Following the resolution of Lammers’ claims against other defendants, the District Court entered a final judgment in favor of Allstate on June 27, 2006. Lammers now appeals.
¶9 We review a district court’s grant of summary judgment de novo. Gliko v. Permann, 2006 MT 30, ¶ 12, 331 Mont. 112, ¶ 12, 130 P.3d 155, ¶ 12. The moving party must establish that there is no genuine issue of material fact and that the party is entitled to judgment as a matter of law. M. R. Civ. P. 56(c).
¶10 Whether coverage exists under an insurance policy presents a question of law, and we review whether the District Court correctly interpreted the provisions of Allstate’s policy. Wendell v. State Farm Mut. Automobile Ins. Co., 1999 MT 17, ¶ 10, 293 Mont. 140, ¶ 10, 974 P.2d 623, ¶ 10.
¶11 We construe an insurance policy “according to the entirety of its terms and conditions as set forth in the policy.” Section 33-15-316, MCA. This means that we will read the contract as a whole and attempt to reconcile its parts to give each meaning and effect. Farmers Alliance Mut. Ins. Co. v. Holeman, 1998 MT 155, ¶ 25, 289 Mont. 312, ¶ 25, 961 P.2d 114, ¶ 25.
¶12 It is well-settled Montana law that ambiguities in an insurance policy will be construed against the insurer. Jacobsen v. Farmers Union Mut. Ins. Co., 2004 MT 72, ¶ 19, 320 Mont. 375, ¶ 19, 87 P.3d 995, ¶ 19; Pablo v. Moore, 2000 MT 48, ¶ 17, 298 Mont. 393, ¶ 17, 995 P.2d 460, ¶ 17; Holeman, ¶ 25; Wendell, ¶ 14. An insurance policy is ambiguous “where the contract, when taken as a whole, is reasonably subject to two different interpretations.” Mitchell v. State Farm Ins. Co., 2003 MT 102, ¶ 26, 315 Mont. 281, ¶ 26, 68 P.3d 703, ¶ 26 (citing Holeman, ¶ 25). To determine if an insurance policy is ambiguous, we examine it “from the viewpoint of a consumer with average intelligence but not trained in the law or insurance business.” Jacobsen, ¶ 19 (citing Wendell, ¶ 14.).
¶ 13 Lammers argues the policy is ambiguous because it did not clearly state whose personal property it covered. We agree. The policy states that coverage applies to “[pjersonal property in apartments or rooms you furnish as landlord” in the building covered by the policy, in this case the Solazzi Building. This language of the policy is ambiguous because it is reasonably subject to two different interpretations. Mitchell, ¶ 26. The policy language could, as Allstate contends, mean that only personal property owned by the landlord is covered. However, the language used does not clearly say so. A reasonable interpretation of this language by an insured is that the policy applies to property of others as well as that owned by Kenney when it is located in rooms Kenney provides as a landlord. It would have been simple for Allstate to draft its policy so as to state that coverage is limited to personal property owned by the insured, Kenney. It did not do so.
¶14 The District Court judge noted that there were two possible interpretations of the applicable policy language by stating that a person reading the policy “can’t be sure ... whether the personal property is insured’s personal property or tenant’s personal property. It could be either one.” Not only from the viewpoint of an insurance consumer of average intelligence, but also to someone trained in the law, the policy is ambiguous. Because the policy provision establishing coverage for personal property is ambiguous, we must construe it against Allstate and in favor of providing coverage. Jacobsen, ¶ 19.
¶15 Allstate also presents an argument, in a rather cursory fashion, that Lammers, as the tenant, is not entitled to coverage under her landlord’s policy. Allstate points to a separate provision of the policy, Coverage B, which insures Kenney against liability to others, and argues that because Lammers is not named as an insured, her property is not covered. However, as Lammers notes, the policy provision stating who are the “Persons Insured” specifically applies to a separate portion of the policy, Coverage B, which provides liability insurance. This separate section of the policy does not state that it is also applicable to Coverage A, under which Lammers claims coverage. Allstate points out no particular provision of its policy which clearly precludes insurance coverage for Lammers’ loss. Again, under these circumstances, we will construe the policy in favor of providing coverage. Jacobsen, ¶ 19.
¶16 Lammers also argues that she is entitled to coverage for the loss of her property under separate provisions of Allstate’s policy providing coverage for business property. However, because we conclude her claimed loss is covered by the policy’s buildings coverage provisions, we need not consider this argument.
¶17 We conclude that the insurance policy is ambiguous and, therefore, it must be construed in favor of providing coverage to Lammers. The order granting Allstate’s motion for summary judgment is reversed, and this case is remanded to the District Court for further proceedings.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, MORRIS and NELSON concur.
|
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Charlene Córtese appeals from an order and judgment entered in the Second Judicial District, Silver Bow County, terminating the maintenance obligation of her ex-husband, Florian Córtese.
¶2 The sole issue in this appeal is whether the District Court erred in finding as a matter of law that Florian’s monthly maintenance obligation to Charlene ended when she remarried.
¶3 On March 17, 2005, the District Court entered a Final Decree of Dissolution of Marriage of Florian and Charlene. The Decree incorporated a Marital and Property Settlement Agreement. The Agreement included separate sections providing for maintenance and distribution of the marital estate. The maintenance provisions required that Florian make monthly payments to Charlene through 2009, pay Charlene’s health insurance for eighteen months, and pay the remaining debt on one of Charlene’s credit cards. The Agreement includes a paragraph stating: “The parties specifically agree that provisions for maintenance herein are non-modifiable.” There is no provision in the agreement that Florian’s maintenance obligation would continue in the event Charlene remarried.
¶4 On December 29, 2005, Charlene remarried. In February 2006, Florian filed a motion to terminate his maintenance obligation, arguing that it ended by operation of law when Charlene remarried. On July 3,2006, the District Court, treating Florian’s motion as one for summary judgment, entered an Order and Judgment terminating his obligation to continue making maintenance payments. Charlene now appeals from this Order and Judgment.
¶5 We review a summary judgment ruling de novo. Fulton v. Fulton, 2004 MT 240, ¶ 6, 322 Mont. 516, ¶ 6, 97 P.3d 573, ¶ 6. Summary judgment is appropriate when no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. M. R. Civ. P. 56(c).
¶6 Section 40-4-208(4), MCA, provides: “Unless otherwise agreed in writing or expressly provided in the decree, the obligation to pay future maintenance is terminated upon ... the remarriage of the party receiving maintenance.”
¶7 If a separation agreement contains no express provision which addresses the termination of a maintenance obligation provided for therein, remarriage of the party receiving maintenance terminates the maintenance obligation, unless maintenance payments are intended as part of the property division. Bertagnolli v. Bertagnolli, 185 Mont. 1, 4, 604 P.2d 299, 301 (1979). We conclude that pursuant to § 40-4-208(4), Florian’s maintenance obligation to Charlene ended when she remarried.
¶8 Charlene is correct that when a separation agreement provides that maintenance payments are “in the nature of a property settlement,” remarriage will not terminate a maintenance obligation. In re Marriage of Hahn, 263 Mont. 315, 322, 868 P.2d 599, 603 (1994). Such language in the separation agreement at issue in Hahn was sufficient to defeat the operation of § 40-4-208(4). However, there is no provision in the separation agreement at issue here which could be construed to make the monthly payments from Florian to Charlene a part of the property distribution. To the contrary, the property distribution and maintenance provisions are in separate sections of the agreement. Likewise, the separation agreement’s provisions concerning its tax consequences reiterate that only the provisions in the maintenance section-monthly payments, health insurance, and payments on one particular credit card-constitute maintenance.
¶9 Montana law also provides that a decree of dissolution may “expressly preclude or limit modification of terms set forth in the decree.” Section 40-4-201(6), MCA. If an agreement between parties limits modification, a District Court must adhere to the non-modification clause and cannot later modify the agreement. In re Marriage of Bolstad, 203 Mont. 131, 135, 660 P.2d 95, 97 (1983). Similar to the agreement in this case, Bolstad involved a separation agreement that expressly precluded modification. However, the petition to reduce maintenance in Bolstad was based on an alleged inability to pay. Bolstad, 203 Mont. at 134, 660 P.2d at 96. It did not involve a situation where the party receiving maintenance remarried. Bolstad is therefore inapposite.
¶10 The dissent, while acknowledging that the separation agreement does not mention remarriage, would add to it a provision that Charlene’s remarriage does not terminate maintenance. Such an addition would be contrary to the Comb’s role in interpreting contracts: “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.” Section 1-4-101, MCA. See also Anderson v. Stokes, 2007 MT 166, ¶ 46, 338 Mont. 118, ¶ 46, 163 P.3d 1273, ¶ 46 (relying on the plain language in an easement grant and declining to insert additional words into the grant); Wurl v. Polson School Dist. No. 23, 2006 MT 8, ¶ 20, 330 Mont. 282, ¶ 20, 127 P.3d 436, ¶ 20 (declining to interpret an employment contract to insert additional language not in the contract itself); Creveling v. Ingold, 2006 MT 57, ¶ 12, 331 Mont. 322, ¶ 12, 132 P.3d 531, ¶ 12 (concluding that “it is not the proper role of the judiciary to insert modifying language into clearly written and unambiguous instruments where the parties to the instrument declined to do so”).
¶11 Both § 40-4-208(4), MCA, and § 40-4-201(6), MCA, concern the subject of dissolution of marriage. Section 40-4-208(4), MCA, is a separate, specific statute providing that maintenance will terminate if the party receiving it remarries, unless it is expressly agreed otherwise or specifically provided in the decree. Section 40-4-201(6), MCA, is a statute which applies generally to provisions in separation agreements, which provides that the parties may, if they so desire, limit the court’s ability to later modify their agreement. These two statutory provisions are not necessarily inconsistent because both can potentially be applied to the same agreement. Where statutes relate to the same general subject they should be construed together, where there is no inconsistency between them, so as to give effect to both where possible. City of Billings v. Smith, 158 Mont. 197, 212, 490 P.2d 221, 230 (1971); State ex rel. Ronish v. School District No. 1 of Fergus County, 136 Mont. 453, 462, 348 P.2d 797, 802 (1960).
¶12 Taking § 40-4-208(4) and § 40-4-201(6) together, we discern the legislative intent to be that upon the remarriage of a party receiving maintenance, maintenance will terminate by operation of law, even if the separation agreement provides that the agreement cannot be modified. For maintenance to continue after the receiving party remarries, a written separation agreement or a court decree must include an express provision that maintenance will not terminate on remarriage of the party receiving maintenance. Thus, despite the non-modification provision in the Agreement, Florian’s maintenance obligation to Charlene ended by operation of law when she remarried. ¶13 There are no material facts in issue, and the District Court applied the law correctly. Affirmed.
JUSTICES COTTER, RICE and MORRIS concur.
For example, in the present ease, if Florian had petitioned to modify his maintenance obligation as it somehow became unconscionable, a possibility provided for by § 40-4-208(2)(b)(i), MCA, the Court would not have the authority to grant the petition as the agreement invokes § 40-4-201(6), MCA, to prevent a modification. Nevertheless, § 40-4-208(4), MCA, applies to terminate maintenance upon Charlene’s remarriage.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant Charles Osborne McFarlane (McFarlane) appeals from the judgment of the Sixteenth Judicial District Court, Custer Comity, denying his motion to "withdraw his guilty plea. We affirm.
¶2 We consider the following issues on appeal:
¶3 1. Did the District Court err by denying McFarlane’s motion to withdraw his guilty plea?
¶4 2. Did McFarlane’s counsel for the motion to withdraw plea provide ineffective assistance of counsel by:
a. Citing to the improper legal standard for a plea withdrawal?
b. Failing to challenge the adequacy of the plea colloquy?
FACTUAL AND PROCEDURAL BACKGROUND
¶5 On August 4, 2003, the Custer County Attorney filed an information charging McFarlane with burglary, a felony, and theft, a misdemeanor. Both charges arose from McFarlane’s entry into Bill Hopkins’ residence on or about May 27, 2003. McFarlane was arraigned on August 19, 2003, and was represented by Wyatt Glade (Glade). Thereafter, a change of plea hearing was held on January 14, 2004, during which McFarlane pled guilty to both the burglary and the theft, pursuant to a plea agreement. In exchange for McFarlane’s guilty plea, the State agreed to move to dismiss the persistent felony offender status against McFarlane. Following the court’s colloquy with McFarlane, the court accepted McFarlane’s guilty plea. A sentencing hearing was then set for April 6, 2004.
¶6 However, McFarlane failed to appear at the sentencing hearing, instead fleeing the jurisdiction. McFarlane was a fugitive for two years until arrested on warrant issued by the District Court and returned to Montana by authorities. Glade withdrew as McFarlane’s attorney of record on March 30, 2006, and the court appointed John Houtz as McFarlane’s new counsel. Shortly thereafter, McFarlane filed a motion to withdraw his guilty plea to the burglary charge. In support of his motion, Houtz asserted that under the three-factor Huttinger test, the court should grant McFarlane’s motion to withdraw his guilty plea. The court held a hearing on the motion and McFarlane testified. McFarlane told the court that Glade had instructed him “to answer [the court’s] questions the way [he] did to get the Judge to accept the plea.” During his testimony, McFarlane also asserted that Glade knew that McFarlane possessed a key to the Hopkins’ residence.
¶7 The District Court denied the motion to withdraw, determining that McFarlane’s plea “was an intelligent and voluntary plea. He had an opportunity to review the plea agreement with his attorney. He said that he was satisfied with his attorney .... this is an opportunistic attempt at getting the best parts of [the] bargain ....” McFarlane appeals.
STANDARD OF REVIEW
¶8 We review a district court’s denial of a motion to withdraw a guilty plea de novo, State v. Warclub, 2005 MT 149, ¶ 17, 327 Mont. 352, ¶ 17, 114 P.3d 254, ¶17, as the issue of whether a plea was entered voluntarily is a mixed question of law and fact. Warclub, ¶ 17. We review the underlying factual findings to determine if they are clearly erroneous. Warclub, ¶ 23. Findings of fact are clearly erroneous if they are unsupported by substantial evidence, the court misapprehended the effect of the evidence, or review of the record convinces us that a mistake has been made. Warclub, ¶ 23. We then review the district court’s interpretation of the law, and application of the law to the facts, for correctness. Warclub, ¶ 23.
DISCUSSION
¶9 1. Did the District Court err by denying McFarlane’s motion to withdraw his guilty plea?
¶10 McFarlane contends that his guilty plea was entered both involuntarily and unintelligently. He advances three arguments in support of his contention. First, McFarlane argues that his plea was involuntary because his attorney, Glade, rendered ineffective assistance of counsel by inadequately preparing him for the change of plea hearing.
¶11 Section 46-16-105(2), MCA, allows a court to withdraw a guilty plea and substitute a not guilty plea where good cause is shown. “Good cause” includes involuntariness of the plea, but may also include other criteria. Warclub, ¶ 16. In fact, we have recognized that “ineffective assistance of counsel constitutes ‘good cause’ for withdrawal of a guilty pleat.]” Hans v. State, 283 Mont. 379, 410, 942 P.2d 674, 693 (1997) (internal citations omitted). “Where a defendant is represented by counsel during the plea process and enters his plea upon the advice of counsel, the voluntariness of the plea depends on whether counsel’s advice was within the range of competence demanded of attorneys in criminal cases.” Hans, 283 Mont. at 411, 942 P.2d at 693 (internal quotations omitted). Following the Strickland test for ineffective assistance of counsel in regard to a guilty plea, the defendant must show (1) that his counsel’s advice fell outside the range of competence demanded of a criminal attorney and (2) but for counsel’s deficient performance, he would not have entered a guilty plea. Hans, 283 Mont. at 410-11, 942 P.2d at 693.
¶12 McFarlane asserts that Glade did not adequately prepare him for the change of plea hearing, specifically arguing that Glade told him “he had to answer yes to all questions asked by the court in the change of plea hearing.” McFarlane also asserts that Glade failed to inform him of the available defense of “permission” despite Glade knowing that McFarlane had a key to the Hopkins’ residence. However, McFarlane makes this argument for the first time on appeal. In the District Court, McFarlane did not raise an ineffective assistance of counsel claim as a basis for withdrawal of his guilty plea. Neither the briefing in support of his motion to withdraw nor the hearing on the motion directly raises an ineffective assistance argument. While the District Court commented upon McFarlane’s testimony that there “may be an ineffective assistance of counsel claim or something like that involved,” the District Court was not squarely presented with the issue. We have repeatedly held that this Court considers issues presented for the first time to be untimely and will not consider them. State v. Adgerson, 2003 MT 284, ¶ 12, 318 Mont. 22, ¶ 12, 78 P.3d 850, ¶ 12. We refuse to consider new arguments and changes in legal theory on appeal “because it is fundamentally unfair to fault the trial court for failing to rule on an issue it was never given the opportunity to consider.” Adgerson, ¶ 12. Accordingly, we decline to reach the merits of this ineffective assistance of counsel claim.
¶13 To be clear, we are not presented here with a separate, standalone ineffective assistance of counsel claim, but rather an argument that counsel’s ineffectiveness impacted the voluntariness of McFarlane’s plea. As McFarlane’s briefing states, “[a] separate claim of ineffectiveness is not properly addressed in this appeal because ... the record does not fully explain why [Glade] took [the] particular actionf.]” We have explained that “[o]nly when the record will fully explain why counsel took, or failed to take, action in providing a defense for the accused may this Court review the matter on direct appeal.” State v. White, 2001 MT 149, ¶ 20, 306 Mont. 58, ¶ 20, 30 P.3d 340, ¶ 20 (emphasis added).
¶ 14 Second, McFarlane argues that his plea was unintelligent because “he was not made aware of a legislatively created defense to the charge of burglary, vis-a-vis, permission.” McFarlane complains that not only did his attorney fail to inform him of the permission defense, but the court’s plea colloquy failed to address the “specifics” of possible defenses. Therefore, McFarlane asserts that the “complete absence of an explanation to the defendant at or before the change of plea hearing of the defense of permission ... requires vacating the guilty plea ....”
¶15 However, as with his first argument, McFarlane challenges the inadequacy of the plea colloquy for the first time on appeal. We note that, while waiting to review the plea hearing transcript, McFarlane stated in his motion to withdraw that “Defendant anticipates the court’s interrogation will be found to be adequate.” Thereafter, McFarlane’s counsel, then Houtz, did not attack the sufficiency of the plea colloquy at the plea withdrawal hearing. Accordingly, we also decline to review this assertion because it was not presented to the District Court. See Adgerson, ¶ 12.
¶16 Third, McFarlane attacks the voluntariness of his plea on the ground that he did not “understand what acts amount to being guilty of [burglary],” and thus contends his guilty plea was not entered intelligently. The State responds that McFarlane’s plea was “voluntarily and intelligently made” because “McFarlane knew the direct consequences of his plea” and points to several case specific considerations in support of the District Court’s denial of McFarlane’s motion. We review this claim under the Brady standard to determine if McFarlane entered his guilty plea voluntarily.
¶17 The Brady standard considers a guilty plea to be “voluntary only when the defendant is ‘fully aware of the direct consequences, including the actual value of any commitments made to him by the court, prosecutor, or his own counsel....’ ” State v. Lone Elk, 2005 MT 56, ¶ 21, 326 Mont. 214, ¶ 21, 108 P.3d 500, ¶ 21 (quoting Brady v. United States, 397 U.S. 742, 755, 90 S. Ct. 1463, 1472 (1970)); see also Warclub, ¶ 18 (reaffirming “our intention to use the Brady standard for the voluntariness of guilty pleas, as articulated in Brady”). “[W]e will not overturn a district court’s denial of a motion to withdraw a guilty plea if the defendant was aware of the direct consequences of such a plea, and if his plea was not induced by threats, misrepresentation, or an improper promise such as a bribe.” Warclub, ¶ 32. When determining if a defendant entered a plea voluntarily and whether a district court erred in denying a motion to withdraw a plea, we examine “case-specific considerations.” These considerations include the adequacy of the district court’s interrogation, the benefits obtained from a plea bargain, the withdrawal’s timeliness, and other considerations that may affect the credibility of the claims presented. State v. Muhammad, 2005 MT 234 ¶¶ 14, 24, 328 Mont. 397, ¶¶ 14, 24, 121 P.3d 521, ¶¶ 14, 24.
¶18 The District Court thoroughly questioned McFarlane before accepting his guilty plea. The record reveals that McFarlane expressed understanding about the charges against him, the maximum penalties for each offense, and his waiver of his right to a trial. McFarlane stated that he was making the plea on his “own free will” and was not threatened prior to making the plea. He testified that he discussed “all the consequences” of his plea with counsel and he was “satisfied with the services of [his] attorney, Mr. Glade[.]” The court also asked if McFarlane had discussed possible defenses and the concept of lesser included offenses with his attorney. McFarlane indicated that he had discussed defenses and lesser included offenses with Glade. When asked if he had permission to enter the Hopkins’ residence he responded, “no.” On this basis, the court accepted McFarlane’s plea. Later, at the withdrawal hearing, McFarlane did not challenge his plea on the basis that he was threatened or induced to make the plea. The only argument he squarely presented was that he did not understand the consequences of his guilty plea. However, our review of the record of the change of plea hearing, along with consideration of case specific considerations discussed below, convince us otherwise.
¶19 First, McFarlane waited approximately two years before seeking withdrawal of his plea. McFarlane fled the jurisdiction after entering his guilty plea and prior to his sentencing, avoiding authorities for two years. His actions indicate an awareness of the consequences of entering a guilty plea and an intention to avoid sentencing penalties by absconding. Moreover, as the State notes, McFarlane’s criminal history includes convictions based on thirteen counts of burglary in six separate criminal proceedings spanning nearly forty years. At the plea withdrawal hearing, McFarlane testified that he had previously pled guilty to approximately seventeen felonies. McF arlane’s experience with the criminal justice system, and burglary charges in particular, cast further doubt on his claims that he was unaware of the permission defense and was confused by the meaning of a guilty plea. Accordingly, McFarlane’s argument that he “misunderstood” the guilty plea or was “confused” about its meaning is unpersuasive. We conclude that McFarlane understood the consequences of his plea and failed to establish good cause to support a plea withdrawal. McFarlane’s guilty plea was voluntarily entered and we affirm the District Court’s denial of McFarlane’s motion to withdraw his plea.
¶20 2. Did McFarlane’s counsel for the motion to withdraw plea provide ineffective assistance of counsel by:
a. Citing to the improper legal standard for a plea withdrawal?
¶21 McFarlane’s second issue is that counsel on his withdrawal motion, Houtz, rendered ineffective assistance of counsel by relying on an improper legal standard for withdrawal of a plea. The State contends that we should refuse to review this claim because the record is “silent” as to why Houtz did not present the proper legal standard.
¶22 When asserting ineffective assistance of counsel in this context, a defendant must meet the two-pronged Strickland test by showing: (1) that his counsel’s performance fell outside the range of competence required of attorneys in criminal cases and (2) the deficient performance prejudiced his case. State v. Hendricks, 2003 MT 223, ¶ 6, 317 Mont. 177, ¶ 6, 75 P.3d 1268, ¶ 6. With respect to the first prong, there is a “strong presumption” that counsel’s actions fall within the broad scope of reasonable professional conduct. Hendricks, ¶ 7. The threshold inquiry to an ineffective assistance of counsel claim is whether the allegations of deficient representation can be documented and resolved from the record.
¶23 McFarlane’s allegation of ineffective assistance of counsel stems from Houtz’s use of the Huttinger test when arguing that the court should allow withdrawal of his guilty plea. We relegated formal application of the Huttinger test to history in our decision in Lone Elk, ¶ 23, and subsequently adopted the United States Supreme Court’s Brady standard in its place. Warclub, ¶ 18. Accordingly, McFarlane contends that Houtz was ineffective by citing the Huttinger test instead of the Brady standard.
¶24 We have recognized the principle that “counsel’s erroneous advice on a critical point ‘cannot be excused as a strategic or tactical judgment, but could have sprung only from a misunderstanding of the law.’ ” State v. Becker, 2005 MT 75, ¶ 19, 326 Mont. 364, ¶ 19, 110 P.3d 1, ¶ 19 (citing United States v. Streater, 70 F.3d 1314, 1321 (D.C. Cir. 1995)). As the Brady standard is arguably more lenient to a defendant seeking plea withdrawal than the old Huttinger test, we cannot discern any reason why Houtz would cite the incorrect and potentially less beneficial standard, other than he failed to recognize the change in the law. Therefore, Houtz’s reliance on the antiquated Huttinger test cannot be presumed a tactical judgment call, and we conclude that Houtz’s performance fell outside the range of competence demanded.
¶25 McFarlane must also satisfy the burden of showing that Houtz’s deficient performance prejudiced his case. McFarlane contends that Houtz’s argument “within the confines of the Huttinger test” caused the District Court to consider the promptness of McFarlane’s motion to withdraw, which is “irrelevant to voluntariness[.]” Because of the District Court’s consideration of promptness of his motion, McFarlane argues that “there is much more than a reasonable probability that the outcome of the hearing would have been different if Houtz had made the appropriate argument regarding voluntariness.”
¶26 The Huttinger test listed three factors for determining if the court should allow the withdrawal of a guilty plea:
(1) the adequacy of the interrogation by the district court of the defendant’s understanding of the consequence of his plea; (2) the promptness with which the defendant attempts to withdraw the previous plea; and (3) the fact that the plea was the result of a plea bargain in which the guilty plea was given in exchange for dismissal of another charge.
Warclub, ¶ 19 n. 3. In contrast, the Brady standard focuses on the “voluntariness” of a defendant’s plea. Lone Elk, ¶ 21. We explained in Lone Elk, ¶ 23, and again in Warclub, ¶ 19, that while the Huttinger test is no longer the standard, the Huttinger factors may nonetheless be considered when determining if the plea was voluntarily entered. In fact, “two of the criteria from the Huttinger test (the adequacy of colloquy and the existence of plea bargain) bear on the question of voluntariness,” Lone Elk, ¶ 23, in addition to other case-specific considerations. Accordingly, consideration of these former Huttinger factors remains appropriate when determining voluntariness under the Brady standard. Therefore, the court did not err when considering them.
¶27 Further, it was not error for the court to consider the promptness of the motion. We have clearly stated that case specific considerations, such as timeliness and reaping the benefit of the bargain, remain relevant. See Muhammad ¶ 24; Warclub ¶ 19. The court here considered the totality of the circumstances, including the plea colloquy, the plea agreement, timeliness, and McFarlane’s absconding from justice, and concluded that McFarlane’s motion was little more than “an opportunistic attempt” to obtain the benefit of the plea agreement without any of the consequences of pleading guilty.
¶28 Moreover, we have already determined, under Issue I herein, that McFarlane’s plea was entered voluntarily based upon an analysis of voluntariness and case-specific considerations under the Brady standard. Therefore, it is clear that despite Houtz’s improper reliance on Huttinger, the outcome would have been the same under the appropriately cited authority. As such, McFarlane’s ineffective assistance of counsel claim does not meet the second prong of the Strickland test and fails.
b. Failing to challenge the adequacy of the plea colloquy?
¶29 McFarlane also argues that Houtz was ineffective because, as we noted above, he did not challenge the plea colloquy within the motion for plea withdrawal. McFarlane asserts that the District Court’s colloquy was flawed by a failure to enumerate the lesser included offenses of which McFarlane could have been convicted had he proceeded to trial.
¶30 During the plea colloquy, the court explained the possibility of lesser included offenses as follows:
THE COURT: Now there is this concept of lesser included offenses that may come into play here. I don’t know that there are any under these circumstances, but if you went to trial there is a possibility that a jury might not be able to reach a verdict or might find you not guilty of the charged offense, but instead find you guilty of a lesser included offense. An offense with a lesser penalty. That’s usually a benefit to a Defendant-that possibility at trial, but because there won’t be a trial[,] that lesser included offense possibility won’t be considered. Do you understand that?
MR. MCFARLANE: Yes, sir.
Although not enumerating lesser included offenses, the court nonetheless clearly informed McFarlane that he would lose the usually advantageous opportunity to be convicted of any lesser included offenses by entering a guilty plea, and McFarlane acknowledged the loss of that opportunity. Further, while McFarlane complains that this colloquy is insufficient, he fails to demonstrate any lesser included offenses to burglary which would have been applicable under the circumstances of his charge. A court has no duty to inform McFarlane about the possibility of lesser included offenses if such a possibility does not legally exist, see State v. Thee, 2001 MT 294, ¶ 24, 307 Mont. 450, ¶ 24, 37 P.3d 741, ¶ 24 (holding that the ineffective assistance of counsel claim fails because there is no duty to inform a client about conviction at trial of a lesser included offense when such a possibility is nonexistent), and thus, McFarlane fails to demonstrate any prejudice which could have arisen from this colloquy. Accordingly, McFarlane’s argument that Houtz provided ineffective assistance of counsel by not challenging the sufficiency of the plea colloquy is without merit.
¶31 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES NELSON, COTTER and WARNER concur.
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶ 1 Coby James Marler (Marler) appeals his convictions in the Eighth Judicial District, Cascade County, for criminal mischief in violation of § 45-6-101(l)(a), MCA, and conspiracy to commit robbery in violation of §§ 45-4-102 and 45-5-401, MCA. We affirm.
¶2 We review the following issue on appeal:
¶3 Did the District Court err in denying Marler’s motion for a directed verdict of acquittal?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 Bob Wilson contacted the Great Falls Police Department early in January of 2005. Mr. Wilson reported bullet-hole damage at the apartment of his daughter, Melissa Wilson. Detective John Schaffer met with Mr. Wilson at his daughter’s apartment.
¶5 Mr. Wilson handed Detective Schaffer a clipboard with a handwritten map. The map appeared to detail the floor layout of a business. Someone had written the words “casino,” “lounge,” and “liquor store” on the map. Mr. Wilson told Detective Schaffer that he believed the map detailed the layout of either the Lucky Lil’s Casino located on Fox Farm Road (Lucky Lil’s) or an establishment named The Brick. Mr. Wilson also informed Detective Schaffer that his daughter had been dating a guy named Coby.
¶6 Detective Schaffer obtained a search warrant for Melissa Wilson’s (Wilson) apartment. Detective Schaffer’s search revealed several bullet holes in the apartment’s wall. Detective Schaffer recovered a .380 caliber slug from the wall.
¶7 Detective Schaffer went to Lucky Lil’s. The floor plan of the casino closely resembled the floor plan on the handwritten map. Detective Schaffer learned that Wilson recently had quit working at Lucky Lil’s. Detective Schaffer grew concerned about the potential for an armed robbery of the casino. Detective Schaffer put out an all-points bulletin notifying officers to locate and stop Wilson’s car.
¶8 Detective Schaffer personally stopped Wilson’s car. Wilson’s friend, Jamie Kirkhart (Kirkhart), had been driving the car when Detective Schaffer stopped it. Detective Schaffer arrested Kirkhart pursuant to an active warrant for her arrest. Additional officers collected Kirkhart’s personal property, including Kirkhart’s cell phone.
¶9 Kirkhart asked Detective Schaffer to provide her with a phone number from her cell phone during the arrest. An image taken with the phone’s camera feature appeared as Detective Schaffer turned on the phone. The image that appeared on the phone displays Marler and Wilson sitting together. The image shows Marler holding a handgun.
¶10 Detective Schaffer retrieved additional images from the cell phone. One image depicts Marler and two friends, Josh McMunn (McMunn) and Eric Hadnott (Hadnott), sitting together on a couch. The image shows each person displaying a hand-gesture. The image shows Hadnott and Marler holding handguns. Kirkhart told Detective Schaffer that McMunn might have information concerning Marler and Wilson.
¶11 Detective Schaffer contacted McMunn. McMunn informed Detective Schaffer that Marler had admitted to McMunn to firing a .380 caliber handgun inside Wilson’s apartment. McMunn told Detective Schaffer that Marler and Wilson had attempted to recruit him and Hadnott to assist in robbing Lucky Lil’s. McMunn also told Detective Schaffer that Marler had disclosed to McMunn that he and Wilson needed money in order to move to Tucson, Arizona. McMunn assured Detective Schaffer that he had no interest in assisting Marler and Wilson with the robbery.
¶12 Detective Schaffer learned that Wilson and Marler had been staying at Kirkhart’s residence. The Great Falls Police Department’s high-risk unit traveled to the residence. A car arrived at Kirkhart’s residence as the high-risk unit approached. Hadnott carried a concealed Heckler & Koch USP .40 caliber handgun as he got out of the car. The high-risk unit arrested Hadnott and recovered the handgun. The high-risk unit arrested Marler and Wilson at Kirkhart’s residence. The high-risk unit recovered no additional handguns during the arrests. The Great Falls Police Department recovered an American Arms .380 caliber handgun, however, in a separate investigation. The .380 caliber handgun appeared to match a handgun held by Marler in one of the cell phone images.
¶13 The State charged Marler with criminal mischief in violation of § 45-6-101(l)(a), MCA, and conspiracy to commit robbery in violation of §§ 45-4-102 and 45-5-401, MCA. Wilson unwillingly testified at trial. Wilson testified that the plan to rob Lucky Lil’s had “started off as a joke.” She testified that the joke later became a reality. Wilson claimed that she and Marler seriously had considered robbing the casino to fund their plans to move to Tucson, Arizona. Wilson recounted that she and Marler had attempted to recruit McMunn and Hadnott to assist in the robbery. Wilson stated that she and Marler had attempted to recruit McMunn and Hadnott both before and after the plan to rob the casino had become serious. Wilson stated that McMunn and Hadnott did not explicitly agree to rob Lucky Lil’s. She insisted, however, that “[w]hatever we wanted to do, they were there with us.” Wilson stated that she, Marler, McMunn and Hadnott comprised a “family.”
¶14 The State questioned Wilson at trial about the holes in her apartment wall. Wilson stated that she and Marler had shot the holes in the wall. The State submitted a .380 caliber handgun into evidence. Wilson stated that she and Marler had used the .380 caliber handgun to shoot the wall. Wilson identified the handgun as the one that she and Marler had used based upon some modifications she had made to the gun’s trigger.
¶15 Wilson also testified concerning the cell phone images discovered by Detective Schaffer. Wilson testified that the hand-gestures displayed by Marler, McMunn, and Hadnott in one of the images stood for “Modern Outlaw” and represented solidarity among the group. Wilson acknowledged that the same gun admitted as evidence at trial appeared in Marler’s hand in at least one of the cell phone images. She stated that the cell phone’s camera took both photos on the same day, approximately two weeks before her arrest.
¶16 Detective Schaffer testified concerning his investigation of the plan to rob Lucky Lil’s. He testified that Wilson’s father had provided him with a hand-drawn map that detailed the floor plan of the casino. Detective Schaffer stated that he had found three bullet holes in the wall of Wilson’s apartment. He also stated that he had recovered a .380 caliber slug from the wall. Detective Schaffer stated that he had information that Marler and Wilson had been living together. Detective Schaffer also recounted the statements that McMunn had made to him during their interview.
¶17 McMunn also testified. McMunn stated that he was not close to Wilson. McMunn denied that he, Marler, Wilson, and Hadnott comprised a “family.” McMunn stated that Wilson had lied about his willingness to assist with the plan to rob Lucky Lil’s. McMunn claimed that he had lied to Detective Schaffer about Marler’s plans to move to Tucson. McMunn also claimed that he had lied when he had told Detective Schaffer that Marler had admitted shooting a .380 caliber handgun at Wilson’s apartment wall. McMunn admitted that he had changed his story to “[protect] the guy.” The State asked McMunn if he was “not being honest [at trial] because you don’t want [Marler] to get in trouble?” McMunn replied “Correct.” McMunn subsequently contradicted that statement. McMunn claimed that he had lied only when speaking with Detective Schaffer. McMunn asserted that he had been testifying truthfully.
¶18 McMunn contended that he truthfully had told Detective Schaffer that Marler had approached McMunn and Hadnott about robbing Lucky Lil’s. McMunn claimed that the plan to rob the casino simply constituted a joke at the time that Marler had attempted to recruit assistance. McMunn also stated that he truthfully had told Detective Schaffer that he had no interest in participating in the robbery.
¶19 Marler moved for a directed verdict of acquittal on the charge of conspiracy to commit robbery at the close of the State’s evidence. Marler argued that the State had failed to provide sufficient corroborating evidence of Wilson’s accomplice testimony as required by § 46-16-213, MCA. Marler asserted that McMunn met the definition of an accomplice as either “responsible or legally accountable for the same offense ....” Marler asserted that insufficient evidence existed to corroborate Wilson’s testimony when discounting McMunn’s testimony. The District Court denied Marler’s motion. The jury convicted Marler of both charges.
STANDARD OF REVIEW
¶20 We review de novo a district court’s denial of a motion for a directed verdict. State v. Swann, 2007 MT 126, ¶ 19, 337 Mont. 326, ¶ 19, 160 P.3d 511, ¶ 19. A district court properly grants a motion for a directed verdict only when no evidence exists upon which a rational trier of fact could have found the essential elements of a crime beyond a reasonable doubt, when viewing the evidence in a light most favorable to the prosecution. Swann, ¶ 16.
DISCUSSION
¶21 Marler argues that the District Court erred when it denied his motion for a directed verdict of acquittal. Marler contends that insufficient independent evidence existed to corroborate Wilson’s testimony that Marler shot holes in Wilson’s apartment wall and conspired with her to rob Lucky Lil’s.
¶22 Section 46-16-213, MCA, provides that an accomplice’s testimony alone cannot establish a person’s guilt. A trier of fact may not find a person guilty solely from an accomplice’s testimony “unless the testimony is corroborated by other evidence that in itself and without the aid of the testimony of the one responsible or legally accountable for the same offense tends to connect the defendant ...” with the crime. Section 46-16-213, MCA.
¶23 Evidence may corroborate accomplice testimony sufficiently even though standing alone it fails to support a conviction or fails to make out a prima facia case against the defendant. State v. Burkhart, 2004 MT 372, ¶ 24, 325 Mont. 27, ¶ 24, 103 P.3d 1037, ¶ 24. Circumstantial evidence, disputed evidence, or evidence that is consistent with innocent conduct may suffice to corroborate accomplice testimony. Burkhart, ¶ 24. Evidence fails to corroborate accomplice testimony sufficiently if it reveals nothing more than a crime’s occurrence or the circumstances of the crime’s commission. Burkhart, ¶ 24.
¶24 Marler argues on appeal that insufficient evidence exists to corroborate Wilson’s statement that he had shot her apartment wall. Marler moved the District Court for a directed verdict of acquittal, however, only on the conspiracy to commit robbery charge. We therefore consider only whether sufficient evidence exists to corroborate Wilson’s testimony regarding the conspiracy to rob Lucky Lil’s.
¶25 Wilson testified that the plan to rob Lucky Lil’s began as a joke. Wilson stated that she and Marler became serious about the conspiracy to rob the casino after she and Marler had made plans to leave town. Wilson continually employed the terms “us” and “we” in her testimony regarding the plan to rob the casino. Wilson explained that the term “us” denoted Marler and Wilson.
¶26 Wilson admitted to drawing a map of the floor layout of Lucky Lil’s. She identified the map at trial. She testified that the X’s on the map represented exits. She testified that the plan to rob the casino required armed individuals to “cover” each of the exits. Wilson stated that she and Marler had attempted to recruit McMunn and Hadnott to assist with the robbery.
¶27 Detective Schaffer provided some corroboration of Wilson’s testimony. Detective Schaffer stated that he had received information that Marler and Wilson had a close relationship and lived together. McMunn had told Detective Schaffer that Marler had stated that he and Wilson had made plans to leave town. McMunn also had told Detective Schaffer that Marler and Wilson had attempted to recruit McMunn and Hadnott to assist with the robbery, though the robbery was simply a joke at that time.
¶28 Detective Schaffer testified that he had learned that Marler and Wilson had moved out of Wilson’s apartment and were staying temporarily at Kirkhart’s apartment. The arrest of Hadnott and the confiscation of his weapon outside Kirkhart’s apartment further supports the testimony that Marler had attempted to recruit armed assistance for the robbery. Hadnott’s presence outside Kirkhart’s apartment constitutes circumstantial evidence of Marler’s involvement in a conspiracy to commit armed robbery.
¶29 The cell phone images further corroborate Wilson’s testimony regarding her relationship with Marler, his relationship with McMunn and Hadnott, and the plan to commit armed robbery. One cell phone image depicts Marler and Wilson sitting together, with Wilson sitting on Marler’s lap. Another image reveals Marler, McMunn, and Hadnott sitting in close proximity together on a couch. All three display the same hand-gesture. Both cell phone images show Marler holding a handgun. One image displays Hadnott and Marler holding handguns.
¶30 McMunn’s interview statements and trial testimony also corroborated Wilson’s testimony. McMunn’s interview statements indicated that Marler had plans to leave town and had a need for funds. Furthermore, McMunn testified that his interview statement regarding Marler’s recruiting attempt constituted one of only two true statements he had made to Detective Schaffer. This statement connects Marler with the conspiracy, even if he made the statement at a time when the conspiracy remained in its infancy.
¶31 Marler contends that McMunn qualifies as “one responsible or legally accountable for the same offense ...” for purposes of § 46-16-213, MCA. Marler argues that the District Court should have discounted any corroboration stemming from McMunn’s out of court statements to Detective Schaffer. The State counters that the District Court found sufficient corroboration solely from the cell phone images and close relationship between Marler and Wilson. The State further asserts that the District Court properly left to the jury the task of determining whether McMunn constituted an accomplice under § 46-16-213, MCA.
¶32 We need not determine whether McMunn constituted an accomplice to the conspiracy to rob Lucky Lil’s. State v. Blackcrow, 1999 MT 44, ¶ 23, 293 Mont. 374, ¶ 23, 975 P.2d 1253, ¶ 23. We determine only whether any rational trier of fact could have found that McMunn was not legally accountable for the conspiracy, viewing the evidence in the light most favorable to the prosecution. Blackcrow, ¶ 23. Disputed evidence presents a question of fact properly determined by the jury. Blackcrow, ¶ 21.
¶33 Wilson’s statements implicated McMunn as a co-conspirator. Wilson testified that she, Marler, McMunn and Hadnott comprised a “family.” Wilson stated that although McMunn did not explicitly agree to help rob Lucky Lil’s, “[wjhatever we wanted to do, [McMunn and Hadnott] were there with us.” The cell phone image of Marler, Hadnott, and McMunn sitting together on a couch, each displaying the same hand-gesture, further connected McMunn with the conspiracy.
¶34 McMunn’s testimony, on the other hand, contradicted Wilson’s characterization of the group’s relationship. McMunn denied that the group comprised a “family.” He testified that he had no intention of assisting in the robbery of Lucky Lil’s. McMunn also testified that he had expressed this fact to Detective Schaffer early in the investigation. Indeed, McMunn’s testimony that he had no intention to help rob the casino constituted one of only two statements at trial that remained consistent with McMunn’s interview statements to Detective Schaffer.
¶35 The District Court correctly did not resolve conflicting testimony regarding McMunn’s status as an accomplice with regard to § 46-16-213, MCA, at the directed verdict stage. Blackcrow, ¶ 21. We need not consider in the present appeal whether the jury ultimately determined McMunn’s status as an accomplice. Marler’s motion for a directed verdict, however, required the District Court to review all evidence in a light most favorable to the prosecution. We too must consider McMunn a non-accomplice when undertaking a de novo review of Marler’s motion for a directed verdict, given the conflicting testimony presented at trial concerning his status.
¶36 The State presented independent evidence tending to connect Marler with the conspiracy to commit robbery, when viewed in the light most favorable to the prosecution. Section 46-16-213, MCA, requires nothing more. See State v. Fey, 2000 MT 211, ¶ 21, 301 Mont. 28, ¶ 21, 7 P.3d 358, ¶ 21. We conclude that the District Court correctly denied Marler’s motion for a directed verdict of acquittal.
¶37 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER and RICE concur.
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JUSTICE NELSON
delivered the Opinion of the Court.
¶1 Kelvin Erickson appeals the amended judgment of the District Court for the Seventh Judicial District, Dawson County, crediting him with 267 days time served in jail for Cause No. DC 01-055 and 457 days time served in jail for Cause No. DC 02-048. We affirm.
¶2 We address the following issue on appeal: Whether the District Court erred in determining credit for time served.
FACTUAL AND PROCEDURAL BACKGROUND
¶3 The facts in this case are more fully set forth in State v. Erickson, 2005 MT 276, 329 Mont. 192, 124 P.3d 119 (Erickson T). Erickson was arrested in Dawson County on November 1, 2001, and placed in jail. On December 4, 2001, the State charged Erickson with criminal possession of dangerous drugs, a felony, in violation of § 45-9-102(5), MCA (DC 01-055). Bail was initially set at $50,000.00. Erickson was unable to post bail, thus he remained incarcerated until his bail amount was reduced. He was able to post a commercial surety bond in the amount of $5,000.00 on July 25, 2002, and he was released.
¶4 On September 19, 2002, while out on bond, Erickson and two other individuals were arrested for manufacturing methamphetamine (meth). Erickson was charged with operating an unlawful clandestine lab, a felony, in violation of § 45-9-132(l)(a), MCA (DC 02-048). His bail was set at $250,000.00, and he remained incarcerated until sentencing.
¶5 On the morning of the scheduled trial in DC 01-055, Erickson entered into a plea agreement with the State wherein he agreed to plead guilty to the possession charge in DC 01-055, and to enter an Alford plea on the clandestine lab charge in DC 02-048. In exchange, the State agreed to recommend a five-year suspended sentence in DC 01-055, and to make a binding recommendation for a concurrent ten-year sentence with five years suspended in DC 02-048. The agreement also stated that the sentences would
rim concurrently and [Erickson] will be given credit for time served awaiting trial in DC 02-048, i.e., credit for time served from the date of his arrest on the unlawful operation of clandestine lab charge to the time of sentencing.
At the change of plea hearing on September 18, 2003, the District Court accepted Erikson’s guilty pleas.
¶6 On December 19, 2003, the District Court held a combined sentencing hearing. At this hearing, the court sentenced Erickson to five years in Montana State Prison (MSP) in DC 01-055 with all time suspended and ten years in MSP in DC 02-048 with five years suspended. The court also ordered that the two sentences were to ran concurrently. In its December 23, 2003 Judgment and Order Suspending Sentence, the District Court ordered that Erickson would be credited with 289 days served in DC 01-055 and 430 days served in DC 02-048. Erickson appealed arguing, among other things, that he must be given credit in DC 01-055 for all of the time he served in jail.
¶7 On November 1, 2005, we issued our Opinion in Erickson I wherein we reversed and remanded for a determination of whether Erickson’s bond in DC 01-055 was revoked and for further inquiry into the question of credit for time served. Erickson I, ¶ 39. We stated in Erickson I that if Erickson’s bond in DC 01-055 was revoked on September 19, 2002, and he was surrendered to the Sheriff, he was then incarcerated awaiting trial on the charges in DC 01-055 as well as those in DC 02-048. In such case, his incarceration was directly related to the charges in DC 01-055, hence § 46-18-403(1), MCA, would require that he receive credit for the time between his arrest and when judgment was entered on that charge. However, if his bond in DC 01-055 was never revoked, then he was not incarcerated on that charge after his release on July 25, 2002, and he need not receive credit against that charge for the time served after his arrest on September 19, 2002. Erickson I, ¶¶ 24-25.
¶8 The District Court held a hearing on the matter on January 5, 2006, and on January 26, 2006, the court issued an Order wherein it made the following findings:
That on Case No. DC 01-055, that the Defendant’s Bail was not formally revoked on September 19, 2002, and therefore the Defendant shall not be given credit for time served in jail on Case No. DC 01-055 for days served in jail beginning September 19, 2002. The Court FURTHER FINDS that the Defendant was not surrendered by his Bondsman to the Dawson County Sheriffs Department until after the Defendant was arrested on Case No. DC 02-048.
The court issued its Amended Judgment and Order Suspending Sentence the same day. In this amended judgment, the court ordered that Erickson be given credit for time served in custody in DC 01-055, from his arrest on November 1,2001, to his release on bond on July 25, 2002, for a total of 267 days; and in DC 02-048, from his arrest on September 19, 2002, to the sentencing hearing on December 19, 2003, for a total of 457 days.
¶9 Erickson appeals the District Court’s judgment arguing that he should also be given credit in DC 01-055 for the 457 days he served in custody from September 19, 2002, when he contends his bond in that case was revoked, until his combined sentencing hearing on December 19, 2003.
STANDARD OF REVIEW
¶10 Trial judges are granted broad discretion to determine the appropriate punishment for offenses. State v. Webb, 2005 MT 5, ? 8, 325 Mont. 317, ¶ 8, 106 P.3d 521, ¶ 8 (citing State v. Hembd, 254 Mont. 407, 411, 838 P.2d 412, 415 (1992)). On appeal we will not review a sentence for mere inequity or disparity. Webb, ¶ 8. Instead, we will only review a criminal sentence for its legality; that is, whether the sentence is within statutory parameters. Webb, ¶ 8 (citing State v. Heath, 2004 MT 58, ¶ 8, 320 Mont. 211, ¶ 8, 89 P.3d 947, ¶ 8). Moreover, a trial court's statutory interpretation is a question of law, which we review to determine whether it is correct. Webb, ¶ 8.
DISCUSSION
¶11 Whether the District Court erred in determining credit for time served.
¶12 Erickson argues on appeal that he should be given fall credit for both the 267 days he spent in custody in DC 01-055 prior to being released on bail and the 457 days he spent in custody after he claims his bail in DC 01-055 was revoked. In other words, Erickson maintains that he should receive 724 days credit in DC 01-055 as well as the 457 days credit he received in DC 02-048.
¶13 Section 46-18-403(1), MCA (2001), provides:
Credit for incarceration prior to conviction. (1) Any person incarcerated on a bailable offense and against whom a judgment of imprisonment is rendered must be allowed credit for each day of incarceration prior to or after conviction, except that the time allowed as a credit may not exceed the term of the prison sentence rendered.
In State v. Kime, 2002 MT 38, ¶ 15, 308 Mont. 341, ¶ 15, 43 P.3d 290, ¶ 15, overruled in part on other grounds by State v. Eaton, 2004 MT 283, 323 Mont. 287, 99 P.3d 661, we stated that
the general purpose of § 46-18-403(1), MCA, is to eliminate the disparity of treatment between indigent and nonindigent defendants. In other words, credit for time served is given so as not to penalize indigent defendants who are unable to post bail and must remain in custody until they are sentenced when nonindigent defendants may secure their release and remain free during that time period.
However, we further stated in Kime that
[t]hat purpose is not served by crediting a defendant’s sentence for time served where the defendant would not have been released from custody had he or she been able to post bail in any event as a result of being held on a sentence related to an earlier offense.
Kime, ¶ 15.
¶14 In the instant case, the State argues that our ruling in State v. Price, 2002 MT 150, 310 Mont. 320, 50 P.3d 530, should be extended to the facts in the case here to prevent Erickson from receiving “what amounts to a double credit.” Price was charged with Driving Under the Influence (DUI), a fourth or subsequent offense, and four misdemeanors. He pled guilty to the misdemeanors prior to trial. He was convicted of the DUI charge following a jury trial and sentenced to twelve months imprisonment for that offense with four years probation. The district court sentenced Price to a total of twelve days in jail on the misdemeanor offenses to run consecutively to the DUI sentence. Because Price had served eighteen days in jail awaiting trial, the court deemed the misdemeanor jail sentences served, and credited the remaining six days of time served to Price’s DUI sentence. Price, ¶1.
¶15 Price contended on appeal that the district court erroneously applied § 46-18-403(1), MCA. He argued that the district court was required to grant him full credit for time served on each sentence imposed. In other words, according to Price, for the eighteen days he remained in jail prior to trial, he should have received eighteen days credit against his DUI sentence along with the time credited toward his misdemeanor sentences. Price, ¶ 23.
¶16 In Price, we cited with favor the following statement made by the Hawaii Supreme Court:
“Once credit has been granted, no additional purpose is served by granting a second or ‘double credit’ against a later consecutive sentence. Courts in other jurisdictions having similar statutes agree that a defendant who receives consecutive sentences is entitled to presentence credit only once against the aggregate of the consecutive terms, while a defendant sentenced to concurrent terms in effect receives credit against each sentence.”
Price, ¶ 27 (quoting State v. Tauiliili, 29 P.3d 914, 918 (Haw. 2001)). And, we held in Price that “§ 46-18-403(1), MCA, entitles defendants to credit for presentence incarceration only once against the aggregate of all terms imposed when multiple sentences are imposed consecutively.” Price, ¶ 28 (emphasis added).
¶17 In the case sub judice, the State would like us to analogize this case to Price and hold that concurrent sentences should be treated the same as the consecutive sentences in Price-i.e., that a defendant should be entitled to credit for presentence incarceration only once against the aggregate of all terms imposed. However, in making this argument, the State failed to point out the last portion of the quotation in Price from the Hawaii Supreme Court that “a defendant sentenced to concurrent terms in effect receives credit against each sentence.” Price, ¶ 27 (emphasis added); Tauiliili, 29 P.3d at 918 (emphasis added). While this statement is not explained further in Price, we are reluctant to extend Price’s holding regarding consecutive sentences to the concurrent sentences in the instant case given this statement. And, indeed, as demonstrated below, it is not necessary that we do so here. In addition, we admonish counsel that when relying on cases to support an argument, they take care not to overlook and omit portions of the case that could prove contrary to their argument.
¶18 In Erickson I, we remanded to the District Court “for a determination of whether Erickson’s bond on DC-01-055 was revoked [and] for calculation of and ordering of credit against his sentences in conformity with” that opinion. Erickson I, ¶ 39. We stated in Erickson I that “[w]hile the record on appeal includes a copy of the bond revocation, it has never been established in the District Court that Erickson’s bond in DC-01-055 was revoked.” Erickson I, ¶ 26. We further stated that
[i]t is clear under the circumstances of this case that, if Erickson’s $5,000 bond was revoked by his bondsman pursuant to § 46-9-401(3), MCA, on September 18, 2002, and he was surrendered to the Sheriff, he was then incarcerated awaiting trial on the charges in DC-01-055 as well as those in DC-02-048. His incarceration was, in such instance, directly related to the charges in DC-01-055, and § 46-18-403(1), MCA, would require that he receive credit for the time between his arrest and when judgment was entered on that charge.
If the truth of the matter is that Erickson’s bond in DC-01-055 was never revoked, the District Court would be correct that he was not incarcerated on that charge after his release on July 25, 2002, and he need not receive credit for such time served.
Erickson I, ¶¶ 24-25.
¶19 We made this determination based on our holding in Kime that “pursuant to § 46-18-403(1), MCA, a defendant’s sentence may be credited with the time he or she was incarcerated only if that incarceration was directly related to the offense for which the sentence is imposed.” Erickson I, ¶ 21 (quoting Kime, ¶ 16) (emphasis added). Kime was arrested on November 26, 2000, on charges of felony theft, DUI and driving while his license was suspended, and placed in the Gallatin County Detention Center. He did not post bail, hence he remained incarcerated at the detention center. At the time of his arrest, Kime was participating in a supervised release program as part of a prior sentence for a felony assault conviction. The prior sentence committed Kime to the custody of the Montana Department of Corrections (DOC) for a period of ten years with five years suspended. On December 5, 2000, the DOC removed Kime from the supervised release program and transferred him to MSP to serve the remainder of his sentence on the felony assault conviction. Kime, ¶¶ 3-4.
¶20 On December 12, 2000, the State charged Kime by Information with felony theft, second offense DUI and driving while his license was suspended. Kime pled guilty to the charges pursuant to a plea agreement and he was sentenced on April 2,2001. At sentencing, Kime requested that the court credit him with time served from the date of his arrest on November 26, 2000, until the April 2, 2001 sentencing. However, the district court credited Kime with only the 20 days served between his arrest and December 5,2000, when Kime was transported from the detention center to MSP. Kime, ¶ 5.
¶21 On appeal, the State pointed out in Kime that § 46-18-403(1), MCA, provides for credit only for time a defendant is “incarcerated on a bailable offense” (emphasis added), and that once Kime was transported to MSP, he was incarcerated on, and serving his sentence for, his nonbailable prior felony conviction. Kime, ¶ 13. We agreed with the State’s argument in Kime, that a defendant should only be credited for time served prior to sentencing where the incarceration is directly related to the offense for which the sentence is imposed, and we so held. Kime, ¶¶ 13, 16.
¶22 In the instant case, the District Court stated the following at the January 5, 2006 sentencing hearing after remand:
I do not believe that the bonding company in this case personally delivered the defendant to the Sheriffs Office and that he was then arrested. The record reflects that there was a stop of a vehicle in which he was a passenger; that there was a search of the vehicle; drugs were found and arrests were made on September 18th [2002]. My belief is that after that arrest, the bonding agents came in and revoked the bail in the 01 charge.
As the Supreme Court indicated in paragraph 25 [of Erickson I\, if the truth of the matter is that Erickson’s bond in DC 01-055 was never revoked, the district the court [sic] would be correct that he was not incarcerated on that charge after his release on July 25,2002, and he need not receive credit for such time served.
It is the opinion of the court that he need not and should not be given credit for time served from September 18th [2002] because he was in custody from that date on the 02 charge of operating a clandestine lab.
And, in its January 26, 2006 Order, the court made the following findings:
That on Case No. DC 01-055, that the Defendant’s Bail was not formally revoked on September 19, 2002, and therefore the Defendant shall not be given credit for time served in jail on Case No. DC 01-055 for days served in jail beginning September 19, 2002. The Court FURTHER FINDS that the Defendant was not surrendered by his Bondsman to the Dawson County Sheriffs Department -until after the Defendant was arrested on Case No. DC 02-048. [Emphasis added.]
¶23 Consequently, we hold that the 467 days Erickson served following his arrest on September 19, 2002, until his sentencing on December 19, 2003, was directly related to the clandestine lab charge (DC 02-048) and only incidentally related to the possession charge (DC 01-055). Hence, the District Court was correct in crediting Erickson with 467 days served in DC 02-048 and refusing to credit him a second time in DC 01-055 for the 467 days he served awaiting trial on the charges in DC 02-048.
¶24 As the State points out in its brief on appeal, the District Court’s ruling was consistent with Erickson’s plea agreement, which stated that Erickson “will be given credit for time served awaiting trial in DC 02-048, i.e., credit for time served from the date of his arrest on the unlawful operation of clandestine lab charge to the time of sentencing.” Furthermore, at the January 5,2006 sentencing hearing after remand, the District Court specifically noted on the record that
had it not been for the plea bargain agreement Mr. Erickson would have received a substantially harsher sentence than what was actually imposed.
Looking back at this, I guess I wish I had not followed the plea agreement and imposed something considerably more stringent on this defendant.
To impose a statutory duty on the sentencing court to apply an additional 457 days credit in DC 01-055 in addition to the 457 days credit for time served in DC 02-048 not only undermines the plea agreement, but results in a substantially different sentence than what was contemplated by the District Court.
¶25 Accordingly, we hold that the District Court did not err in determining credit for time served in this case.
¶26 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES MORRIS, LEAPHART and RICE concur.
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OPINION AND ORDER
¶1 We discussed at length the facts giving rise to this matter in In re Conservatorship of KLoss, 2005 MT 39, 326 Mont. 117, 109 P.3d 205, and In re Engel, 2007 MT 172, 338 Mont. 179, 169 P.3d 345 [hereinafter Engel 7]. We will repeat here only those facts pertinent to our decision to impose on Engel a sixty-day suspension. The Office of Disciplinary Counsel (ODC) filed a complaint against Joseph Engel, III, (Engel), an attorney licensed to practice law in the state of Montana. We determined that Engel had violated Rules 1.5,1.15, and 1.18, of the Montana Rules of Professional Conduct (MRPC). Engel I, ¶ 48.
¶2 The Commission on Practice of the Supreme Court of the State of Montana (the Commission) held a hearing regarding the appropriate sanction for Engel. The Commission recommends that we impose on Engel a public censure and the costs of the disciplinary proceedings based on the Commission’s finding that several mitigating factors weigh against any harsher sanction. We decline to follow the Commission’s recommendation. We conclude that in addition to a public censure and the obligation of the costs of the disciplinary proceedings, Engel’s conduct warrants a sixty-day suspension from practice.
STANDARD OF REVIEW
¶3 This Court “possesses original and exclusive jurisdiction and responsibility” in all matters involving the disciplining of lawyers in the state of Montana. See Introduction, Montana Rules for Lawyer Disciplinary Enforcement (MRLDE). We review de novo the Commission’s findings of fact, conclusions of law, and recommendations. In re Potts, 2007 MT 81, ¶ 32, 336 Mont. 517, ¶ 32, 158 P.3d 418, ¶ 32. We weigh the evidence upon which the Commission’s findings rest. Potts, ¶ 32.
DISCUSSION
¶4 The Commission cites the presence of several mitigating factors to support its recommendation. The Commission first asserts that the Court did not disavow expressly the Commission’s finding that Engel “had received $295,000 in fees from Kloss during the period 1998-2005, whereas [Engel] recorded over $330,000 in time and expenses representing Kloss.” The Commission cites the fact that Robert James (James), Engel’s opposing counsel in the Edward D. Jones litigation, initiated the complaint against Engel and suggests that James’s litigation tactics played a large part in driving up the litigation costs. The fact that Kloss never complained about Engel’s work or his fee represents a further mitigating factor in the Commission’s view. The Commission asserts that Engel worked “over an extended period of time and achieved positive and beneficial results for [Kloss].” Finally, the Commission cites the negative publicity surrounding Engel’s role in this matter as a mitigating factor. We disagree with the Commission with respect to each alleged mitigating factor.
¶5 Engel’s Billable Hours.
¶6 Engel argues that the Commission understood his fee arrangement with respect to the “overall picture” of his representation of Kloss, which includes: (1) the termination of a Charitable Remainder Trust (CRT); (2) a tort claim against Edward D. Jones, a brokerage firm; and (3) opposition to a petition for the appointment of a conservator for Kloss filed by James, the opposing counsel in the Edward D. Jones litigation. The record fails to support Engel’s claim, however, that the “overall picture” of his representation of Kloss justifies his fee.
¶7 Kenneth Parrent (Parrent), Kloss’s 71-year-old nephew, executed a fee agreement on Kloss’s behalf on July 1, 1998, to have Engel terminate the CRT for an hourly rate of $125. Engel I, ¶ 9. Engel’s billing records indicate that he performed 65.9 hours of work in terminating the CRT. Engel I, ¶ 9. Kloss paid Engel $8,362.50 for this work in 1998 according to the terms of the hourly fee agreement. Engel I, ¶ 9.
¶8 Engel signed a second fee agreement with Kloss on October 27, 1998, relating to the tort action against Edward D. Jones. Engel I, ¶ 10. The second fee agreement provided that Engel would bill Kloss at an hourly rate of $125 from an original $20,000 retainer provided by Kloss. Engel I, ¶ 11. This second agreement further provided that Engel would receive thirty-five percent of any recovery in the action against Edward D. Jones. Engel I, ¶ 11. The agreement makes no mention of any arrangement, however, whereby Kloss would fund the Edward D. Jones litigation from the proceeds of the CRT.
¶9 The parties presumably intended the original $20,000 retainer to fund the Edward D. Jones litigation. Kloss provided an additional $50,000 retainer in 2002. Engel I, ¶ 11. Engel’s accounting practices make it impossible to determine to which litigation this $50,000 retainer applied. Engel did not place either the $20,000 retainer or the $50,000 retainer in his trust account. Engel instead placed both retainers directly into his operating account. Engel I, ¶ 11. We determined that these actions, standing alone, violated Rules 1.15 and 1.18, MRPC. Engel I, ¶ 41.
¶10 Engel justified the size of the fee for his work in pursuing the uncontested dissolution of the CRT, in part, on the separate action in which James petitioned for a conservator for Kloss. Engel also asserted that he used the $50,000 retainer to cover the cost of his work in contesting James’s petition for a conservator. Engel I, ¶ 11. Engel changed the fee agreement for terminating the CRT on February 1, 2000. James did not petition for the appointment of a conservator for Kloss until June 2003-about 18 months after Engel received the $50,000 retainer and several years after Engel modified the fee agreement for terminating the CRT. Engel I, ¶¶ 11-12.
¶11 The Commission gives Engel the benefit of the doubt in suggesting that he properly earned these retainers and the remaining fee of nearly $130,000 that he received for the Edward D. Jones litigation. We decline to provide Engel with this benefit in light of the numerous inconsistencies in the record. Engel’s billing records, the various fee agreements, and Engel’s shifting explanations for his accounting practices raise more questions than provide answers.
¶12 We concluded that Engel’s fee in collecting $121,545 for his work in an uncontested proceeding to terminate the CRT “cannot be deemed reasonable under any circumstances.” Engel I, ¶ 33. This conclusion invalidates more than one-third of the total amount that Engel received and, at the very least, raises questions regarding the validity of Engel’s remaining fee. The record does nothing to resolve those questions. The Commission’s recommendation, on the other hand, validates the remaining two-thirds of Engel’s fee and implicitly challenges our conclusion that Engel’s after-the-work-was-performed modification of the fee agreement from an hourly fee to a contingency fee could not be justified “under any circumstances.”
¶13 The ODC’s amended complaint against Engel did not address specifically the entire scope of Engel’s representation of Kloss. As a result, we did not resolve the legitimacy of the remaining two-thirds of Engel’s fee. We see no mitigation in the fact that we did not repudiate explicitly the Commission’s finding relating to an issue not germane to our review.
¶14 James’s Filing of Complaint.
¶15 The Commission continues to advance as a mitigating factor the fact that James, Engel’s opposing counsel, initiated this complaint and employed “tactics” that allegedly drove up Kloss’s expenses, including James’s filing of a petition for a conservator for Kloss. A disinterested District Court held a hearing on James’s petition. We commend to the Commission the District Court’s Findings of Fact, Conclusions of Law and Order, Ex. 76, and the transcript of the hearing on James’s petition, Ex. 75, before they imply that James filed the petition to gain a tactical advantage in the litigation with Edward D. Jones.
¶16 The District Court addressed the issue of whether to appoint a conservator for Kloss when faced with the fact that Kloss’s former nearly $1,000,000 estate had a value of less than $5,000 at the time of the hearing. Kloss generally could provide no explanation for the precipitous drop.
¶17 The District Court found that Kloss remained oblivious to her financial state and that her nephew, Parrent, had squandered a large part of her estate. Specifically, Kloss did not know that she had deeded to a Colorado corporation a 4,000 square foot house located in Fairfield, Montana, that she recently had purchased. The Colorado corporation, established by Parrent, had no employees, income, or expenses. The District Court stated that the corporation “appears to be a shell....” Kloss was unaware that Parrent had been using her money to pursue legal and private investigative services in Colorado for his personal matters. Kloss did not know that she had suffered a $167,000 loss in one year in her brokerage account. Kloss did not know that she had borrowed funds by way of a margin account and that she had paid nearly $75,000 in interest on these funds. Kloss testified that she had never used the margin account.
¶18 The District Court further found that Parrent had led Kloss to believe that the CRT eventually would divest Kloss of her entire estate. The District Court determined that Parrent had failed to explain to Kloss that, rather than losing her entire estate, she would have retained $650,000 outside the CRT and earned seven percent annual interest on the $350,000 principal of the CRT until her death.
¶19 The District Court found that Parrent had no means of support outside of Kloss. He lived in the house that Kloss had deeded to his shell corporation. He drove a car that Kloss had bought for his shell corporation. Parrent also served as the sole support for his live-in fiancé. Despite having no other means of support, Parrent somehow satisfied $200,449 worth of his federal income tax liens in September of2000.
¶20 The District Court also found that Parrent had taken over Kloss’s investment decisions. According to the stock broker, Parrent “was trying to make money by buying and selling stocks.” The District Court found that Parrent had begun investing in “aggressive, volatile, and risky securities.”
¶21 Finally, the District Court found that shortly before it had entered its order freezing Kloss’s assets and ordering Parrent not to exercise his power-of-attorney, Parrent emptied more than $156,000 from Kloss’s brokerage account. Parrent could give no accounting as to what had happened to Kloss’s money. Parrent did not take all of his aunt’s money. He left Kloss about $950.
¶22 James learned all of this information during the discovery phase of the Edward D. Jones litigation. James, an attorney bound by the Rules of Professional Conduct, had little choice in the face of this avalanche of avarice. Engel nevertheless seeks to disparage James and his motives for petitioning for a conservator for Kloss. The Commission characterizes James’s petition as a “tactic” that “[drove] up the litigation costs” and implies that James inappropriately initiated the complaint against Engel.
¶23 The District Court specifically found that James received no compensation for seeking the appointment of a conservatorship. The District Court further determined that James “undertook this matter to protect Mrs. Kloss, and not for any other or improper purpose.” Indeed, the fact that Engel filed a petition to appoint Parrent as a conservator for Kloss in 1998 supports the notion that Kloss needed protection. Engel represented to the court in that petition that Kloss needed a conservator due to her “age and failed health” and her “inability to function independently.” Engel withdrew the petition based solely upon opposition from relatives to the appointment of Parrent as the conservator, and not based upon a changed perception regarding Kloss’s ability to manage her affairs.
¶24 More importantly, Rule 8.3(a), M.R.P.C., specifically requires a lawyer to inform the ODC of another lawyer’s “violation of the Rules of Professional Conduct.” We determined that Engel had violated three separate rules. Engel I, ¶ 48. Designating James’s reporting of these violations as a mitigating factor undermines a lawyer’s duties pursuant to Rule 8.3(a), M.R.P.C. We refuse to encourage members of the bar to sit on their hands in the face of potential misconduct by opposing counsel.
¶25 No Complaint By Kloss.
¶26 The Commission cites Kloss’s failure to complain about Engel’s legal services or the fees that he charged for those services as mitigating the effects of Engel’s ethical violations. Kloss’s testimony at the hearing for the appointment of a conservator belies any apparent satisfaction with Engel’s legal services and the fees that he charged.
¶27 Kloss testified that she had paid Engel several thousand dollars to terminate the CRT. We now know that Kloss paid Engel more than $121,000 to terminate the CRT pursuant to Engel’s after-the-work-was-performed modification of the fee agreement. The District Court found that Parrent had written all the checks for legal fees to Engel and that Kloss did not “understand or appreciate how much was spent in attorney’s fees, or whether that is a proper amount to spend in attorney’s fees for the work that was performed.”
¶28 Kloss testified in that same proceeding that she had paid Engel $2,500 in legal fees in the Edward D. Jones litigation. We now know that Engel accrued fees in that litigation in the neighborhood of $200,000. Kloss testified at the hearing in 2003 that she had paid Engel about $7,500 in total legal fees when in fact she had paid Engel more than $300,000. It comes as no surprise, therefore, that Kloss would have “no complaint” regarding Engel’s fee. We disagree with the Commission’s view that Kloss’s apparent satisfaction with Engel’s legal services and his fees constitutes a mitigating factor in light of this testimony.
¶29 Positive and Beneficial Results for Kloss.
¶30 The Commission determined that Engel’s work produced “positive and beneficial results” for Kloss. Our decision in Kloss v. Edward D. Jones & Co., 2002 MT 129, 310 Mont. 123, 54 P.3d 1, emerged from Kloss's action. The Edward D. Jones litigation established the important principles that the brokerage contract at issue constituted a contract of adhesion and that, as a result, no party could enforce the contract’s arbitration provision. Edward D. Jones, ¶¶ 27, 32. More importantly, for our purposes, the Court held that the broker owed Kloss a “fiduciary duty” that included explaining the consequences of the arbitration provision. Edward D. Jones, ¶ 38. Engel pursued litigation that established a fiduciary duty for brokers while he committed abuses of the fiduciary duties that he owed to his client in that same litigation.
¶31 The parties eventually settled the action with Edward D. Jones agreeing to pay $150,000 to Kloss. Engel “waived” any further fee in the Edward D. Jones case. We note that Engel “waived” any further fee only after James had filed a petition for the appointment of a conservator, after the District Court had denied Engel’s motion to dismiss the petition, after Engel allegedly had expended $77,338.22 in resisting the appointment of a conservator for Kloss, and shortly before the District Court held a hearing on James’s petition.
¶32 Kloss already had paid Engel roughly $200,000 in the case. Though Engel’s accounting practices make precision impossible, Kloss appears to have suffered a net loss of $50,000 by pursuing the claim against Edward D. Jones. We fail to discern on the record before us any “positive and beneficial results” for Kloss.
¶33 Negative Publicity for Engel.
¶34 Finally, the Commission cites as a mitigating factor Engel’s testimony that “press publicity about the Kloss litigation and his role in it has been ruinous to his reputation and law practice.” Engel elected to assist Parrent in undoing Kloss’s CRT and filing a tort action against Edward D. Jones. Engel drafted all of the fee agreements at issue. He had ready access to the same information presented to the District Court at the hearing on James’s petition to appoint a conservator for Kloss. Engel’s claim brings to mind the saying that “a boy cannot kill his own parents and then plead for mercy upon himself because he is a poor orphan boy.” Berry v. Jorris, 199 S.W.2d 616, 619 (Ky. 1947).
CONCLUSION
¶35 We fail to find persuasive any of the alleged mitigating factors cited by the Commission. The circumstances surrounding Engel’s conduct leave us unable to follow the Commission’s recommendation. Accordingly, it is hereby ordered that:
¶36 1. Joseph Engel, III, appear before the Supreme Court of the State of Montana on March 18, 2008, at 1:15 p.m. for the administration of a public censure;
¶37 2. Joseph Engel, III, pay, or make arrangements to pay, the costs of the proceedings before the Commission. Pursuant to Rule 9(A)(8), MRLDE, Disciplinary Counsel is directed to assemble and serve upon Joseph Engel, III, an itemized list of the costs and expenses incurred in this matter. Joseph Engel, III, shall then have ten days thereafter to file written objections and, if he desires, to request a hearing before an Adjudicatory Panel;
¶38 3. Joseph Engel, III, shall be suspended as attorney and counselor for a period of sixty days, commencing as of the date of the public censure, at the expiration of which time, upon payment of all costs incurred in this proceeding, he may resume the practice of law without further order.
¶39 4. The Clerk of this Court is directed to mail copies of this Order to Joseph Engel, III, by certified mail, return receipt requested, and by ordinary mail to Joseph Engel’s attorney, the Chairman and the Secretary of the Commission on Practice, the Office of Disciplinary Counsel, and the Executive Director of the State Bar of Montana.
DATED this 6th day of February, 2008.
/S/ KARLA M. GRAY
/S/BRIAN MORRIS
/S/ JOHN WARNER
/S/JIM RICE
|
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 R.P. appeals from an order of the Sixth Judicial District, Park County, terminating his parental rights. We affirm.
¶2 We review the following issue on appeal:
¶3 Did the District Court’s decision to terminate the parent-child relationship between R.P. and M.P. constitute an abuse of discretion?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 M.P. tested positive for marijuana on June 23, 2006-the day he was born. M.P.’s mother admitted drug use during her pregnancy and an on-going addiction to methamphetamine. The Department of Health and Human Services (Department) removed M.P. and placed him in foster care a few days after his birth. The Department placed M. P. with his maternal grandmother in California.
¶5 The Department petitioned the District Court for immediate protection and emergency protective services five days after M.P.’s birth. The District Court adjudicated M.P. as a youth in need of care on July 25, 2006. M.P.’s mother relinquished her parental rights two days later.
¶6 M.P.’s father, R.P., was incarcerated at the time of his son’s birth. The Department filed a petition to terminate R.P.’s parental rights in October of 2006. The Department moved for an order dismissing the petition to terminate after learning that R.P. had a parole hearing scheduled for November 30,2006. The Department re-filed the petition after determining that R.P. had failed to obtain parole and would remain ineligible for parole for at least another year.
¶7 The District Court held a hearing regarding the termination of R.P.’s parental rights on April 24,2007. Jacqui Poe (Poe), a community social worker with the Department, testified at the hearing. Poe confirmed that the Department had placed M.P. with his maternal grandmother shortly after his birth. Poe highlighted the special attachment needs of infants during their formative years. Poe testified that M.P.’s early placement created an important caregiver attachment between M.P. and his grandmother.
¶8 Poe testified that the combination of M.P.’s infancy and R.P.’s incarceration prevented regular contact between the child and his father. Poe addressed R.P.’s efforts concerning his parent-child relationship with M.P. R.P. had provided no child support. R.P.’s incarceration prevented him from visiting his son.
¶9 Poe asserted that parents who are interested in creating a relationship with their child usually make efforts to contact the Department. Poe testified that a request for pictures that came through R.P.’s counsel comprised R.P.’s only effort to contact the Department. Poe informed the court that the Department considered R.P.’s incarcerated state to constitute abandonment under § 41-3-423(2)(a), MCA.
¶10 R.P. also testified at the termination hearing. R.P. informed the court that he had recently enrolled in an anger management course. He testified that he also had signed up for a parenting class. R.P. asserted that Poe had made no efforts to contact him. R.P. stated that, with regard to contacting the Department concerning M.P., “I assumed everything I had to do would be through [counsel] ....” R.P. concluded by asking the court to give him the opportunity to support and parent M.P.
¶11 The District Court terminated R.P.’s parental rights in its Findings of Fact, Conclusions of Law, and Order entered on June 4, 2007. The court found that the child “will have been in foster placement for more than 15 of the most recent 22 months before the father will be eligible for parole in November 2007 ....” The court determined, therefore, that a presumption existed that the child’s best interests required termination of R.P.’s parental rights. The court found that R.P. “failed to present any credible evidence at the hearing that controverts this presumption.”
¶12 The District Court took note of R.P.’s criminal history, citing his seven prior felonies and four prior revocations. The court noted R.P.’s parole denial in November of 2006, and the fact that R.P. would not become eligible for parole again until November of 2007. The court found that R.P. had to serve approximately three more years in prison. The court found that “the condition rendering the father unfit-his imprisonment-is unlikely to change within a reasonable time.”
¶13 The cotut also found that R.P. had a history of voluntary underemployment, “despite [R.P.’s] assertion that he wishes to support M.P.” The court found that R.P. had failed to establish a substantial relationship with his son by failing to visit or have regular contact with M.P. The court determined that R.P. had failed to manifest an ability to assume legal and physical custody of M.P. due to his incarceration. The court found that R.P. had abandoned M.P. due to R.P.’s incarceration, as well as the testimony of both Poe and R.P.
¶14 The court noted that R.P.’s incarceration would continue for more than one year. The court accepted Poe’s testimony that M.P. required immediate permanent placement to meet his developmental, cognitive, and psychological stability needs. The court found that R.P.’s incarceration prevented him from providing an immediate permanent placement. Accordingly, the court found that “reunification with the father is not in M.P.’s best interests because of M.P.’s placement with his maternal grandmother, his age, and his needs.” The court concluded that the Department did not need to provide R.P. with a treatment plan.
¶15 The District Court ultimately concluded that the Department, pursuant to § 41-3-609, MCA, had established the statutory criteria for terminating R.P.’s parental rights by clear and convincing evidence. The court terminated the parent-child relationship of R.P. and M.P. in order to serve “the best interests of M.P.”
STANDARD OF REVIEW
¶16 We review a district court’s decision to terminate parental rights to determine whether the district court abused its discretion. In re D.B., 2007 MT 246, ¶ 16, 339 Mont. 240, ¶ 16, 168 P.3d 691, ¶ 16. A district court abuses its discretion when it acts arbitrarily, without employment of conscientious judgment, or so exceeds the bounds of reason as to perform a substantial injustice. In re D.B., ¶ 16.
¶17 We review a district court’s findings of fact to determine whether they are clearly erroneous. In re D.B., ¶ 18. We review a district court’s conclusions of law to determine whether the district court correctly interpreted and applied the law. In re Custody and Parental Rights of A.P., 2007 MT 297, ¶ 28, 340 Mont. 39, ¶ 28, 172 P.3d 105, ¶ 28.
DISCUSSION
¶18 R.P. argues that the District Court improperly relied on the presumption in favor of termination set forth in § 41-3-604(1), MCA. The State concedes that the presumption found in § 41-3-604(1), MCA, does not apply, but argues that the District Court properly terminated R.P.’s parental rights on alternative grounds. The State argues that the District Court’s reference to the presumption provided in § 41-3-604(1), MCA, constitutes harmless error.
¶19 Parents have a fundamental liberty interest in their right to the care and custody of their children that requires protection through fundamentally fair procedures. In re D.B., ¶ 17. We have held that the district court must address adequately the applicable statutory requirements before terminating parental rights. In re D.B., ¶ 17. Section 41-3-609, MCA, sets forth the substantive criteria concerning the termination of a parent-child legal relationship. A district court may terminate a parent’s rights if it finds that the State has established any one of the conditions listed in the statute. Section 41-3-609(1), MCA; In the Matter of S.T., 2008 MT 19, ¶¶ 15, 19, 341 Mont. 176, ¶¶ 15, 19, 176 P.3d 1054, ¶¶ 15, 19. The court must find that the State has established the condition by clear and convincing evidence. Section 41-3-609(1), MCA.
¶20 Section 41-3-604(1), MCA, establishes a presumption that termination of a parent-child relationship is in a child’s best interests if the child “has been in foster care under the physical custody of the state for 15 months of the most recent 22 months ....” Although § 41-3-604, MCA, establishes a presumption regarding a child’s best interests, the provision primarily concerns the State’s obligation to file a petition to terminate parental rights. Indeed, we recently have confirmed that the “ ‘presumption in § 41-3-604(1), MCA, neither eliminates the substantive requirements of § 41-3-609, MCA, nor diminishes the clear and convincing burden of proof on the party seeking termination of parental rights.’ ” In re D.B., ¶ 23 (quoting In re B.H., 2001 MT 288, ¶ 29, 307 Mont. 412, ¶ 29, 37 P.3d 736, ¶ 29).
¶21 The District Court affirmatively found that a presumption existed that terminating R.P.’s parental rights would best serve M.P.’s interests due to the fact that M.P. “will have been in foster placement for more than 15 of the most recent 22 months before the father will be eligible for parole ....” The court referenced this presumption twice in its findings of fact and found that the father had failed to controvert the presumption. Section 41-3-604(1), MCA, provides that a presumption in favor of termination exists only “[i]f a child has been in foster care ...” for 15 of the most recent 22 months.
¶22 The State concedes that no presumption existed in this case because M.P. had not yet remained in foster care for the requisite length of time. We note that in addition to finding that a presumption in favor of termination exists, the District Court advanced factual findings pertaining to conditions that support termination under § 41- 3-609, MCA. We recently have reaffirmed that a district court properly terminates parental rights if it correctly relies upon “any one basis....” In the Matter of S.T., ¶ 15. Accordingly, we determine only whether any one of the bases asserted by the District Court under § 41-3-609, MCA, supports the termination of R.P.’s parental rights.
¶23 Section 41-3-609(l)(f), MCA, provides that a court may order termination if a child constitutes a youth in need of care and (1) the parent has not complied with an appropriate treatment plan, and (2) the condition rendering the parent unfit is unlikely to change within a reasonable time. The statute absolves the State from providing a treatment plan if the parent “is or will be incarcerated for more than 1 year and reunification of the child with the parent is not in the best interests of the child because of the child’s circumstances ....” Section 41-3-609(4), MCA. The statute also specifically directs the district court to consider a parent’s history of violent behavior and “present judicially ordered long-term confinement ...” when determining whether the condition rendering the parent unfit is likely to change within a reasonable time. Section 41-3-609(2), MCA.
¶24 The District Court noted that the court previously had adjudicated M.P. as a youth in need of care. The District Court found that R.P. would remain incarcerated for more than one year. The court specifically found that reunification would not serve M.P.’s best interests due to M.P.’s age and his developmental, cognitive, and psychological needs.
¶25 The District Court noted R.P.’s extensive criminal history, his recent parole denial, and his ineligibility for another parole hearing until November of 2007. Accordingly, the court determined that the condition rendering R.P. 'unfit to parent, his incarceration, was unlikely to change within a reasonable time. The District Court’s factual findings reveal that the court relied on § 41-3-609(l)(f), MCA, as one basis under the statute warranting termination of R.P.’s parental rights.
¶26 A district court also may terminate a putative father’s rights if the father fails to contribute to the support of a child for an aggregate period of one year when able to do so, or if the father fails to establish a substantial relationship with the child. Sections 41-3-609(l)(e) and 41-3-423(3)(a)-(b), MCA. A putative father may demonstrate a substantial relationship with his child by having regular contact with the child or the agency having the care and custody of the child and by “manifesting an ability and willingness to assume legal and physical custody of the child ...” if the other parent does not have physical custody of the child. Section 41-3-423(3)(b)(ii)-(iii), MCA.
¶27 The District Court found that R.P. failed to “present any testimony or evidence indicating that he had actually supported, established a relationship or had any contact with his son, M.P.” The court also found that R.P. had a history of voluntary underemployment despite his assertions that he wished to support M.P. The court noted that neither R.P., nor M.P.’s biological mother, presently maintained physical custody of the child, and found that R.P. had failed to manifest an ability to assume legal and physical custody of M.P. The court concluded that R.P., as a putative father, had failed to support and establish a relationship with M.P. as outlined under § 41-3-423(3)(a)-(b), MCA. Thus, the court found that R.P. satisfied another condition for termination listed under § 41-3-609(l)(e), MCA.
¶28 The District Court’s factual findings and conclusions of law demonstrate that the court did not rely on the presumption in § 41-3-604(1), MCA, when terminating R.P.’s parental rights. Although the District Court twice mentioned the presumption, the factual findings and conclusions of law entered by the District Court speak directly to the criteria listed in § 41-3-609(1), MCA, and specifically address the best interests of M.P. The record demonstrates that the District Court conscientiously employed its judgment and did not exceed the bounds of reason when it terminated R.P.’s parental rights.
¶29 We recognize the significant limitations that an incarcerated father faces when trying to establish a relationship with his infant child. We also note, however, that §§ 41-3-609 and 41-3-423, MCA, generally accommodate incarcerated individuals. Section 41-3-423(3), MCA, for example, employs language that accounts for putative fathers burdened by physical or financial limitations. The statute generally requires only that putative fathers make those efforts available under the circumstances. Section 41-3-423(3), MCA. The District Court’s factual findings demonstrate that R.P. failed to take even those opportunities that remained available to him during his incarceration.
¶30 The District Court’s consideration of R.P.’s incarcerated state does not diminish the State’s burden of affirmatively establishing the criteria found in § 41-3-609(1), MCA, by clear and convincing evidence. In re D.B., ¶ 18. Likewise, district courts must continue to give primary consideration to the best interests of the child. In re K.J.B., 2007 MT 216, ¶ 24, 339 Mont. 28, ¶ 24, 168 P.3d 629, ¶ 24. We note only that the provisions governing the termination of a parent-child relationship necessarily consider a parent’s behavior and his or her efforts of parental support and care. Sections 41-3-609 and 41-3-423, MCA. The statutes specifically direct district courts to consider long-term confinement and incarceration lasting more than one year. Sections 41-3-609(2)(d) and (4)(c), MCA. Furthermore, we have recognized that “a child may need help while a parent is incarcerated and that such help cannot be delayed pending the parent’s release.” Matter of D.G., 244 Mont. 17, 21, 795 P.2d 489, 491 (1990).
¶31 The District Court made specific factual findings concerning M.P.’s best interests and the criteria set forth in § 41-3-609, MCA. The District Court concluded that the State had established by clear and convincing evidence that terminating R.P.’s parental rights served M.P.’s best interests. We determine that the District Court’s decision to terminate R.P.’s parental rights did not constitute an abuse of discretion.
¶32 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, WARNER, NELSON, COTTER and RICE concur.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Appellant Western Mutual Insurance (WMI) appeals an order of the Eleventh Judicial District dated December 11, 2006, which reinstated a default judgment originally entered against WMI on June 7, 2005. The reinstated default judgment awarded damages to Appellees Kathy and Kenneth Birnel for breach of contract and various violations of the Montana Unfair Trade Practices Act, §§ 33-18-101 through 1006, MCA (UTPA). We reverse the District Court’s reinstatement of the June 7, 2005 default judgment and remand for farther proceedings consistent with this Opinion.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 The Birnels were insured by WMI. They submitted claims for medical bills to WMI which were not paid. As a result of the nonpayment, ABC Collectors sued the Birnels for the medical expenses. The Birnels, in turn, filed a third-party complaint against WMI on March 21,2005, claiming that WMI committed breach of contract and violated various provisions of the UTPA when it failed to pay for medical services received by Kathy Birnel.
¶3 Because WMI is a foreign insurer, the insurance commissioner is designated as its attorney to receive service of process under § 33-1-601, MCA. Accordingly, WMI’s complaint and summons were sent to the commissioner for service upon WMI. The insurance commissioner forwarded this summons to WMI, but WMI never responded. The Birnels moved for an entry of default judgment which was granted on June 7, 2005.
¶4 On June 13, 2005, WMI filed a motion to set aside the default judgment. As it explained in its motion, WMI had changed its address in May of 2000 and had notified the commissioner by letter of its new location. However, WMI did not complete a 1042 form, which the insurance commissioner claimed was required in order to effect a change of address for service of process purposes. As a result, the insurance commissioner sent service of process to WMI’s former address, and WMI never received it. Claiming the commissioner erred by sending the summons and complaint to the wrong address, WMI moved to set aside the default judgment, pursuant to M. R. Civ. P. 60(b).
¶5 On July 28, 2005, the District Court granted WMI’s motion and set aside the default judgment. On August 2, 2005, the Birnels filed a motion to reconsider, seeking to have the default judgment reinstated. On August 25, 2005, the Birnels also filed a notice of appeal, challenging in this Court the District Court’s grant of WMI’s motion to set aside the default judgment. The next day, August 26, 2005, the District Court granted the Birnels’ motion to reconsider and reinstated the default judgment, prompting the Birnels to withdraw their notice of appeal. On August 30,2005, out of concern that their previous notice of appeal might have divested the District Court of jurisdiction, the Birnels moved the District Court to reissue its previous order granting their motion to reconsider. According to the District Court docket, the District Court did not rule on this motion, but did issue a scheduling order on September 7, 2005. On September 21, 2005, WMI appealed the District Court’s August 26, 2005 order reinstating the default judgment to this Court.
¶6 WMI’s appeal led to our decision in ABC Collectors, Inc. v. Birnel, 2006 MT 148, 332 Mont. 410, 138 P.3d 802 (“Birnel I”), wherein we reversed the reconsideration of the motion to set aside the default judgment, and remanded the case back to the District Court. In Birnel I, we held that the Birnels’ motion for reconsideration was not authorized by the Montana Rules of Civil Procedure, and that by filing a notice of appeal on August 25, 2005, the Birnels had in any event divested the District Court of jurisdiction to entertain the motion to reconsider in the first place. Birnel I, ¶¶ 18-19.
¶7 After remand, on November 6, 2006, the District Court denied a motion filed by the Birnels under M. R. Civ. P. 59(g) to alter or amend the order setting aside the default judgment. The District Court then entertained a motion for partial summary judgment filed by WMI, setting oral argument on the motion for November 17, 2006. During oral argument, though no motion was before the District Court, the Birnels asserted that their August 30, 2005 motion to reissue the District Court’s previous order reinstating the original default judgment was still on the table, and urged the District Court to simply “reissue” this order once again.
¶8 On December 11, 2006, the District Court, sua sponte, reinstated the default judgment originally entered against WMI on June 7, 2005. The District Court concluded that it had erred in previously setting aside the default judgment because WMI had failed to establish good cause to set aside the default judgment as required under Matthews v. Don K. Chevrolet, 2005 MT 164, 327 Mont. 456, 115 P.3d 201.
¶9 WMI now appeals this latest order from the District Court, arguing it is in violation of M. R. Civ. P. 55(b)(2), and that the District Court substantially abused its discretion in issuing it. Because we find WMI’s argument under M. R. Civ. P. 55(b)(2) dispositive, we reverse the District Court on that ground and do not address the other arguments WMI raises on appeal.
STANDARD OF REVIEW
¶10 Default judgments are not favored, in deference to the principle that every litigated case should be decided on its merits. Matthews, ¶ 9. Thus, we review an appeal from a denial to set aside a default judgment for only a slight abuse of discretion. Matthews, ¶ 9.
DISCUSSION
¶11 Did the District Court violate M. R. Civ. P. 55(b)(2) and abuse its discretion when it reinstated the June 7,2005default judgment against WMI?
¶12 We agree with WMI that the reinstatement of the original default judgment by the District Court was done in violation of M. R. Civ. P. 55(b)(2), thereby constituting an abuse of discretion by the District Court. This rule states in pertinent part:
In all other cases the party entitled to a judgment by default shall apply to the court therefor.... If the party against whom judgment by default is sought has appeared in the action, the party (or, if appearing by representative, the party’s representative) shall be served with written notice of the application for judgment at least 3 days prior to the hearing on such application.
¶13 This Rule does not permit the District Court to enter a default judgment sua sponte and without application by a party, as it did here when it reinstated the default judgment against WMI which it had previously set aside. Further, the Rule requires that the party against whom judgment is sought be served with written notice of the application for the judgment at least three days in advance. Neither of these aspects of the Rule was satisfied here. Moreover, even assuming that the Birnels had filed a new motion with the District Court asking it to reconsider and “reissue” its previous order reinstating the June 7, 2005 default judgment, it should be abundantly clear from Birnel I that such a motion is not permitted under the Montana Rules of Civil Procedure. As we stated in Birnel I,
Notwithstanding their argument on appeal, the Birnels’ motion for reconsideration failed to refer at all to Rule 59, M.R.Civ.P. Nor did it discuss a “manifest error of law.” Instead, the Birnels’ motion for reconsideration merely restated their argument that WMI had not established the excusable neglect necessary to set aside a default judgment.
We conclude the Birnels’ motion for reconsideration was not in the nature of a Rule 59(g), M.R.Civ.P., motion to alter or amend the judgment. The motion was precisely what it purported to be-a motion for reconsideration not authorized by Montana civil procedure rules.
Birnel I, ¶¶ 17-18 (citing Nelson v. Driscoll, 285 Mont. 355, 359, 948 P.2d 256, 258 (1997)).
¶14 The August 30, 2005 motion to “reissue” the District Court’s previous order of default judgment is precisely the type of motion which we explicitly stated in Birnel I is not allowed under the Montana Rules of Civil Procedure. It is devoid of any reference to M. R. Civ. P. 59 whatsoever. And, in fact, the District Court had already denied a motion filed by the Birnels to amend or alter the order setting aside the default judgment pursuant to M. R. Civ. P. 59(g) on November 6, 2005. Thus, the District Court abused its discretion in sua sponte reconsidering the question and “reissuing” its previous order granting a default judgment against WMI. While this ruling would normally conclude our Opinion, we proceed further for the reasons set forth below.
¶15 In arguing against WMI’s appeal, the Birnels ask us to reach the merits of the propriety of the earlier entry of default judgment against WMI. They contend that § 33-1-601, MCA, requires foreign insurers such as WMI to submit a 1042 form whenever they wish to change their designated address for receiving out-of-state service of process, and that WMI’s failure to submit this form is fatal to its attempt to set aside the default judgment. In light of the tortured path this case has taken-with two appeals before the default issue is even resolved-we conclude that the interests of judicial economy compel us to address this question notwithstanding our procedural ruling in favor of WMI. We begin with § 33-1-601, MCA, which reads as follows:
Commissioner-attorney for service of process.
(1) Each insurer applying for authority to transact insurance in this state shall appoint the commissioner as its attorney to receive service of legal process issued against it in Montana. Service of legal process under this section means a summons and a complaint. The appointment must be made on a form designated and furnished by the commissioner. The appointment is irrevocable, binds the insurer and any successor in interest or to the assets or liabilities of the insurer, and remains in effect as long as there is in force in Montana any contract made by the insurer or obligations arising from a contract.
(2) Each insurer at the time of application for a certificate of authority shall file with the commissioner the name and address of the person to whom process against it served upon the commissioner is to be forwarded. The insurer may change the designation by a new filing.
¶16 Section 33-1-601(1), MCA, compels an insurer to appoint the commissioner as its attorney to receive legal process, providing that “the appointment must be made on a form designated and furnished by the commissioner.” WMI complied with this requirement in making the initial appointment. Section 33-1-601(2), MCA, simply provides that foreign insurers can change the name and address of the person who will receive out-of-state service “by a new filing.” While the Birnels assert that this “new filing” can be accomplished only by way of the 1042 form, the statute does not say so.
¶17 We interpret statutes according to their plain meaning. Sturchio v. Wausau Underwriters Ins. Co., 2007 MT 311, ¶ 10, 340 Mont. 141, ¶ 10, 172 P.3d 1260, ¶ 10. “Further, we refuse to insert ‘what has been omitted or to omit what has been inserted.’ ” Sturchio, ¶ 10 (quoting Section 1-2-101, MCA). We agree with WMI that the plain language of § 33-1-601, MCA, requires a designated form to make the initial appointment for service of process, but requires only a “new filing” for change of address for receiving out-of-state service of process. Section 33-1-601, MCA, simply does not by its terms require the use of a particular form for the accomplishment of such change of address. The District Court should take account of this conclusion in the event it is called upon on remand to once again analyze the propriety of a default judgment against WMI.
CONCLUSION
¶18 Accordingly, we reverse the District Court’s reinstatement of the June 7, 2005 default judgment and remand for further proceedings consistent with this Opinion.
CHIEF JUSTICE GRAY, JUSTICES RICE, NELSON and WARNER concur.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Lita Pepion filed a complaint with the Department of Labor and Industry’s (DOLI or the Department) Human Rights Bureau challenging her termination from employment with the Indian Health Board of Billings, Inc. (IHBB). Twelve months after Pepion’s complaint had been filed, IHBB sought dismissal of the complaint and a “Right to Sue” letter on the ground that DOLI had failed to hold a timely contested case hearing. The Bureau’s hearing examiner denied IHBB’s request. The IHBB filed a Petition for Judicial Review of Agency Order with the First Judicial District Court, Lewis and Clark County, naming both DOLI and Pepion as Respondents. The District Court reversed and remanded the administrative order with instructions to dismiss the complaint and issue a “Right to Sue” letter. Pepion appeals. We affirm the District Court’s Decision and Order.
ISSUE
¶2 A restatement of the issue presented on appeal is:
¶3 Did the District Court err in reversing DOLI’s Hearings Bureau’s decision denying IHBB’s request to dismiss Pepion’s complaint?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 Lita Pepion (Pepion) worked for IHBB from November 2003 to September 2004. In June 2004 IHBB terminated her employment. She appealed her termination and was reinstated. In September 2004 IHBB terminated her again asserting an absence of funding for her position. Upon notice of her second termination, Pepion made a formal allegation of sexual harassment with DOLL
¶5 The facts of the underlying case are not in dispute; therefore, Pepion’s administrative case raised a purely legal question-did the Department lose jurisdiction of Pepion’s human rights complaint when a contested case hearing on her complaint was not held within twelve months? The following administrative procedural history establishes the background for our analysis.
¶6 On November 1, 2004, Pepion filed a complaint for harassment and retaliatory discharge with DOLI’s Human Rights Bureau (the Bureau). The Bureau investigated the complaint and on May 3, 2005, issued its report finding that the preponderance of the evidence did not indicate that the alleged discrimination occurred. The Bureau thereafter dismissed Pepion’s complaint and issued a “Right to Sue” letter allowing Pepion to take her claim before the appropriate district court, if desired. Pepion chose instead to continue pursuing the available administrative remedy and filed an objection to the Bureau’s decision with DOLI’s Human Rights Commission (the Commission). The Commission held a hearing on July 19, 2005, to consider the adequacy of the investigator’s report. On July 26, 2005, the Commission determined that Pepion could continue pursuing her administrative remedy and remanded the complaint back to the Bureau for the scheduling of a contested case hearing.
¶7 Upon receipt of the complaint and the Commission’s order of remand, the Bureau’s hearing examiner issued a “Notice of Hearing” on August 15, 2005 (Notice). The record indicates that acknowledgment of service of the Notice had been signed by all parties by August 23,2005. This Notice notified all parties that the claim had been transferred to the Hearings Bureau for a contested case hearing. It also indicated that the hearing examiner would set the case for hearing within 90 days of the date of service of the last party served. On August 31, 2005, in accordance with the Notice, the hearing examiner issued an “Order Setting Contested Case Hearing Date and Prehearing Schedule.” The Order scheduled a contested case hearing for November 17, 2005.
¶8 On October 3,2005, counsel for Pepion made a special appearance before the hearing examiner and requested a continuance of scheduled depositions and a rescheduling of the contested case hearing. The record before us does not reveal the grounds for this request, but upon “good cause shown” the hearing examiner granted Pepion’s request. As a result, on October 4, 2005, the hearing examiner issued an “Order Continuing 10/4 Depositions and Resetting Contested Case Hearing Date and Prehearing Schedule.” In this Order, the contested case hearing was reset for January 5, 2006. The following day the hearing examiner vacated this Order, apparently on the ground that the January 5 hearing date was not within 90 days of the October 4 Order-it was 93 days. On October 11, 2005, the hearing examiner reissued its Order, once again setting the contested case hearing for January 5, 2006.
¶9 As of November 1,2005, Pepion’s complaint had been before DOLI for one year; therefore, relying on § 49-2-509, MCA (2005), IHBB requested that the complaint be dismissed for failure of the Department to hold a contested case hearing within twelve months of the complaint’s filing. On November 4, 2005, the hearing examiner denied IHBB’s request based upon his interpretation that the statutory provisions mandating dismissal after 12 months were not applicable to the case before him. On December 5,2005, IHBB filed a Petition for Judicial Review of Agency Decision with the First Judicial District Court. On May 11, 2006, the District Court agreed with IHBB and reversed and remanded the case to the Hearing examiner with instructions to dismiss Pepion’s complaint and issue a “Right to Sue” letter, thus concluding administrative proceedings.
¶10 Pepion filed a timely appeal.
STANDARD OF REVIEW
¶11 An agency’s conclusions of law are reviewed to determine if they are correct. This same standard of review is applicable to both the district court’s review of the administrative decision and our subsequent review of the district court’s decision. Hofer v. Montana DPHHS (In re Hofer), 2005 MT 302, ¶ 14, 329 Mont. 368, ¶ 14, 124 P.3d 1098, ¶ 14 (citations omitted).
DISCUSSION
¶12 Did the District Court err in reversing DOLI’s Hearings Bureau’s decision denying IHBB’s request to dismiss Pepion’s complaint?
¶13 We begin our analysis with the observation that the statutes at issue here are both complex and poorly written, an unfortunate combination of factors that has contributed to the situation facing the parties, the hearing examiner, the District Court, and this Court. Moreover, the 2007 legislature amended the subject statutes in some detail, and in fact repealed § 49-2-509, MCA, upon which much of our analysis here is predicated. (After revising the language, much of the content of § 49-2-509, MCA (2005), has been codified in § 49-2-513, MCA (2007).) Because this case arose in 2005, we will analyze it pursuant to the statutes in effect in 2005.
¶14 Title 49, Chapter 2 of the Montana Code Annotated governs various illegal discrimination claims including the type of employment discrimination claim in the case before us. Part 5 of Title 49, Chapter 2, establishes the enforcement procedures for such discrimination claims. Sections 49-2-505 and -509, MCA (2005), are critical to our analysis and are set forth in relevant part below.
¶15 Section 49-2-505, Contested case hearing, provides in pertinent part:
(1) If the informal efforts to eliminate the alleged discrimination are unsuccessful, the department shall hold a hearing on the complaint. The department shall serve notice of the hearing and a copy of the complaint on the parties.
(2) (a) If the parties mutually agree to permit the department to retain jurisdiction of the case under this chapter for a period of time that exceeds 12 months after the complaint was filed, then the parties shall stipulate to a schedule for proceedings to be established by the department.
(b) The department shall, not later than 395 days after the complaint was filed, set a date for an administrative hearing in the case.
(c) The case must be heard no later than 90 days after the date is set by the department. The department may, in its sole discretion, issue a continuance of the hearing date only upon a showing of good cause.
¶16 Section 49-2-509, MCA, Conclusion of complaint-filing in district court, provides:
(1) Except as provided in subsection (2), the department shall, at the request of either party, conclude the administrative proceedings if:
(a) the department has completed its investigation of a complaint filed pursuant to 49-2-305; or
(b) 12 months have elapsed since the complaint was filed.
(2) The department may not refuse to conclude the administrative proceedings unless:
(a) the party requesting the conclusion of the administrative proceedings has waived the right to request filing in the district court;
(b) more than 30 days have elapsed since service of notice of hearing under 49-2-505, unless the department fails to schedule a hearing to be held within 90 days of service of notice of hearing; or
(c) the party requesting conclusion of the administrative proceedings has unsuccessfully attempted through court litigation to prevent the department from investigating the complaint.
(3) The department shall dismiss a complaint filed under this chapter and the complainant may file a discrimination action in district court if:
(a) the commission or the department lacks jurisdiction over the complaint;
(b) the complainant fails to cooperate in the investigation of the complaint or fails to keep the department advised of changes of address;
(c) the department determines that the allegations of the complaint are not supported by a preponderance of the evidence; or
(d) the department determines that the commission or the department will not or cannot hold a hearing within 12 months after the filing of the complaint.
(4) A decision of the department to dismiss a complaint brought under this chapter or to refuse to permit removal to the district court is final unless a party seeks review by filing objections within 14 days after the decision is served on the party. The commission shall review the decision in informal proceedings under 2-4-604. A party may ask the district court to review a decision of the commission made under this section. The review must be de novo.
¶17 The parties offer various interpretations of the Notice provisions of the statutes and also present opposing arguments on the question of whether the “hearing” referenced in § 49-2-509(3)(d), MCA, is intended to encompass only the contested case hearing. We decline to address these arguments in any detail, as we conclude that the dispositive question-i.e., did the Department lose jurisdiction of Pepion’s complaint when a contested case hearing was not held within twelve months-can in any event be answered by reference to the statutes as written.
¶18 In the hearing examiner’s November 4 Order denying IHBB’s request for dismissal, the examiner first analyzed whether either condition in § 49-2-509(1), MCA, was met. He concluded that while § 49-2-509(l)(a), MCA, was inapplicable to the employment discrimination claim at bar, § 49-2-509(l)(b), MCA, was met-i.e., 12 months had elapsed since the complaint was filed. Therefore, in accordance with the introductory caveat, he turned his attention to § 49-2-509(2), MCA, and attempted to unravel the baffling multiple negatives found in § 49-2-509(2)(b), MCA -'The department may not refuse to conclude the administrative proceedings unless: more than 30 days have elapsed since service of notice of hearing under 49-2-505, unless the department fails to schedule a hearing to be held within 90 days of service of notice of hearing.” The hearing examiner concluded that because he had issued the Notice on August 15, service was acknowledged on August 23, and the contested case hearing was scheduled for November 17 (within 90 days of service acknowledgment), he had the discretion to refuse to conclude the administrative proceedings under § 49-2-509(2)(b), MCA. (The hearing examiner did not expressly acknowledge that IHBB’s request for dismissal was filed more than 30 days after the August 23 service acknowledgment date.)
¶19 Lastly, the hearing examiner concluded that the language and purpose of § 49-2-509(4), MCA, supported his decision to refuse to terminate the administrative proceedings. He explained that Pepion had a right under § 49-2-509(4), MCA, to challenge the Bureau’s initial dismissal of her claim but that this challenge process consumed much of the 12-month period following the filing of her complaint; in fact, by the time the complaint was returned to the Bureau, the Notice was issued, service was acknowledged, and the contested case hearing scheduling order was issued, the parties had a mere 62 days remaining in the 12 months. Concluding dismissal was not warranted, the examiner scheduled the hearing for November 17,16 days beyond the 12-month time period.
¶20 As noted above, the District Court reversed the hearing examiner. The court determined that under § 49-2-505(2)(a), MCA, the Department lost jurisdiction of the case after 12 months unless the parties stipulated otherwise-which they did not. (It is necessary at this point in our analysis to once again reiterate that parties cannot, by stipulation, confer jurisdiction if jurisdiction does not exist. Jurisdiction involves the fundamental power and authority of a court to determine and hear an issue. Thompson v. State, 2007 MT 185, ¶ 28, 338 Mont. 511, ¶ 28, 167 P.3d 867, ¶ 28 (citing Stanley v. Lemire, 2006 MT 304, ¶ 30, 334 Mont. 489, ¶ 30, 148 P.3d 643, ¶ 30). Accordingly, subject-matter jurisdiction can never be forfeited or waived. Thompson, ¶ 28 (citing Stanley, ¶ 32). Additionally, subject-matter jurisdiction cannot be conferred by the consent of a party. Thompson, ¶ 28 (citing In re Marriage of Miller, 259 Mont. 424, 427, 856 P.2d 1378, 1380 (1993).) In this regard, we observe that the 2007 Legislature revised the statute to exclude any reference to “retained jurisdiction.” The new statute now reads, in relevant part:
If the parties mutually agree to extend the time for hearing beyond 12 months after the complaint is filed, then the parties shall stipulate to a schedule for proceedings to be established by the department.
Section 49-2-505(2), MCA (2007).
¶21 On appeal, DOLI maintains that the District Court incorrectly interpreted and applied the relevant statutes and that Pepion should be allowed to exhaust her administrative remedies by pursuing her claim through the contested case hearing. The Department asserts that § 49-2-509, MCA, not § 49-2-505, MCA, is the controlling statute to be applied when a party seeks to conclude the administrative process and file in district court.
¶22 The IHBB urges the Court to hold that the applicable statutes mandate a contested case hearing within 12 months of the filing of the complaint and that failure to hold such a hearing results in the Department’s loss of jurisdiction and requires dismissal of the complaint unless the parties stipulate to extend the proceedings.
¶23 We agree with the hearing examiner’s determination that § 49-2-509(l)(a), MCA, is inapplicable and that (l)(b) was met. We also agree that the Department scheduled a hearing to be held within 90 days of the service of notice. As noted in ¶ 7, the “Notice of Hearing” was issued on August 15, 2005, and the hearing was scheduled to occur on November 17, within 90 days. However, the problem presented at this point is two-fold: first, the November 17 hearing date is more than 12 months beyond November 1, 2004, the date Pepion’s complaint was filed; and second, at Pepion’s request, the hearing was rescheduled to January 5, 2006, well beyond the 12-month deadline imposed under §§ 49-2-505 and -509, MCA. This being so, the provisions of § 49-2-505(2)(a), MCA, requiring the consent of both parties to extend the time for hearing, had to come into play.
¶24 The Department strongly argues that the terms of § 49-2-505, MCA, are inapplicable here and that § 49-2-509, MCA, is the only statute to be applied to the dismissal request in this case. We disagree. Section 49-2-505(2)(a), MCA, specifically states that if the parties mutually agree to permit the Department to “retain jurisdiction” of the case under this chapter for a period of time that exceeds 12 months after the complaint was filed, then the parties must stipulate to such. (Emphasis added.) This statute cannot be ignored.
¶25 We conclude that while the language of the various statutes before us regarding notice and continuances is confusing and in some respects inherently contradictory, what is clear is that the proceedings must be concluded within 12 months of the filing of the complaint unless the parties mutually agree to extend the time for hearing beyond that deadline, which did not occur here. Sections 49-2-505(2)(a), 49-2-509(l)(b), and 49-2-509(3)(d), MCA, when read both individually and together, simply permit no other conclusion. Therefore, while we do not agree with all aspects of the District Court’s analysis, we conclude the District Court reached the right result when it determined that Pepion’s complaint must be dismissed. Therefore, we affirm.
CONCLUSION
¶26 For the foregoing reasons we affirm the Decision and Order of the District Court.
CHIEF JUSTICE GRAY, JUSTICES MORRIS, NELSON, WARNER, LEAPHART and RICE concur.
It is undisputed that §§ 49-2-509(2)(a) and (c), MCA, are inapplicable to this case.
The regulatory version of this statute, Admin. R. M. 24.9.262A(l)(c), is more clearly written and provides: (1) At the request of any party to a case before the commission... the department shall issue a right to sue letter if the commission has not yet held a contested case hearing and 12 months have elapsed since the complaint was filed, unless: (e) the party requesting the issuance of the right to sue letter has filed the request more than 30 days after service of the notice of certification for hearing on that party, and the commission or its hearing examiner has scheduled a hearing to be held witmn 90 days of the date of service of the notice of certification for hearing on the requesting party....
Pepion did not personally file a brief on appeal; rather, DOLI filed the appellants’ opening and reply briefs on behalf of both DOLI and Pepion.
|
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JUSTICE NELSON
delivered the Opinion of the Court.
¶1 On March 2, 2005, Peggy Joyce Jackson filed a petition for dissolution of her marriage to David Carter Jackson. The District Court for the Thirteenth Judicial District, Yellowstone County, entered an order on August 29,2005, dissolving the marriage, distributing the parties’ marital property, and awarding maintenance to Peggy. David now appeals. We affirm in part and reverse in part.
¶2 We restate the issues on appeal as follows:
1. Did the District Court err by not accounting for Peggy’s destruction of a bed that David estimated was worth $2,000?
2. Did the District Court err by leaving David financially exposed to a Veterans Affairs loan foreclosure on a residence awarded to Peggy?
3. Did the District Court fail to make adequate findings in awarding maintenance?
4. Did the District Court err in making the maintenance award for the duration of Peggy’s lifetime or until she remarries, without making findings as to how this maintenance award could be covered long-term?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 Peggy and David married on May 26, 1982, in Glenrock, Wyoming. They subsequently moved to Billings, Montana, in approximately 1985. At the time she filed the petition for dissolution, Peggy was 62 years old and David was 49 years old. Peggy and David have one adopted son, Noah, who is an adult. Since 2001, Peggy has been employed as a lunch supervisor at Sodexho in Billings and earns an annual salary of approximately $6,900 per year. Peggy also receives $523 per month in social security benefits. Prior to 2001, Peggy worked a series of jobs after she and David married, but she was also unemployed for several years to be a stay-at-home mother.
¶4 Although David did not graduate from high school, he later earned his GED, received a bachelor’s degree in business administration, and completed auctioneering school. At the time of the dissolution proceedings, David was employed as an apprentice electrician, earning approximately $42,000 per year. He was to receive incremental raises every six months until he completed all the units of his apprenticeship program. David also received $2,400 per month in YA benefits, but he expected this amount to decrease to $1,056 per month, as he was found to have only a 70% disability instead of the previously determined 100% disability and he would no longer receive a dependant benefit upon dissolution of his marriage. The District Court found that David’s earnings, overtime pay, and VA benefits combined for an income of approximately $60,000 per year.
¶5 Peggy and David’s assets included their family home, which the District Court determined had a fair market value of $150,000. A mortgage debt of approximately $135,400 encumbered the home on a VA home loan obtained through David’s eligibility as an Army veteran. The parties’ marital property also included a 1979 Ford Lariat pickup truck, a 1979 Ford Custom 100 pickup truck, a 1990 Ford Taurus, a 2004 Ford Explorer, a number of tools primarily used by David during the marriage, and household furnishings. The parties also had debts of approximately $54,700, excluding the home mortgage debt.
¶6 In her petition for dissolution, Peggy requested that David be required to pay her $1,500 per month in maintenance and that the assets and debts of the parties be equitably distributed. The District Court then issued a temporary restraining order prohibiting the parties from disposing of any real or personal property, without the consent of the other party or a court order. The court issued the temporary restraining order pursuant to § 40-4-121(3), MCA, which mandates the issuance of such an order when the clerk of a district court issues a summons pursuant to Title 40, Chapter 4, MCA. The court also issued a separate order prohibiting David from entering the family residence.
¶7 The District Court held a nonjury trial on August 17, 2005, and heard testimony from Peggy and David. The court entered its Findings of Fact, Conclusions of Law, and Decree of Dissolution on August 29, 2005. The court awarded the family home solely to Peggy, but ordered her to sell or refinance the property within 36 months so that David would not appear as an obligor on the mortgage. If Peggy failed to sell or refinance the property within 36 months, the court stated that the property would be sold and the net proceeds distributed equally between the parties. The court allocated other personal property between David and Peggy. The court also ordered David to pay Peggy $1,000 per month in maintenance until her death or remarriage.
¶8 On September 12, 2005, David filed a Motion to Amend Findings of Fact/Motion for New Trial, Amendment of Judgment and Notice of Hearing. He requested that the court account for Peggy’s destruction of a bed worth, he claimed, $2,000. David also requested that the court add language to the judgment stating that maintenance would continue until the “death or remarriage of the petitioner or upon respondent’s change of employment or his retirement.” The District Court entered an order and memorandum on September 29, 2005, denying David’s motion to amend. This appeal followed.
STANDARD OF REVIEW
¶9 Section 40-4-202, MCA, governs the distribution of a marital estate and vests a district court with broad discretion to apportion the marital estate in a manner equitable to each party under the circumstances. In re Marriage of Bartsch, 2007 MT 136, ¶ 9, 337 Mont. 386, ¶ 9, 162 P.3d 72, ¶ 9. We initially review a district court’s division of marital property and maintenance awards to determine whether the findings of fact upon which the division is based are clearly erroneous. In re Marriage of Swanson, 2004 MT 124, ¶ 12, 321 Mont. 250, ¶ 12, 90 P.3d 418, ¶ 12. “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.” In re Marriage of Gerhart, 2003 MT 292, ¶ 15, 318 Mont. 94, ¶ 15, 78 P.3d 1219, ¶ 15. Absent clearly erroneous findings, we will affirm a district court’s division of property and award of maintenance unless we identify an abuse of discretion. In re Marriage of Rudolf, 2007 MT 178, ¶ 15, 338 Mont. 226, ¶ 15, 164 P.3d 907, ¶ 15. 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. In re Marriage of Killpack, 2004 MT 55, ¶ 8, 320 Mont. 186, ¶ 8, 87 P.3d 393, ¶ 8. We review a district court’s conclusions of law to determine if they are correct. In re Marriage of Olson, 2005 MT 57, ¶ 9, 326 Mont. 224, ¶ 9, 108 P.3d 493, ¶ 9.
DISCUSSION
¶10 Issue One. Did the District Court err by not accounting for Peggy’s destruction of a bed that David estimated was worth $2,000?
¶11 On March 24, 2003, David purchased an Eastman House Omega queen-sized bed from Mattress King in Billings, Montana, for $1,980. At trial, Peggy admitted that she had destroyed the bed. In her brief to this Court, Peggy explains that David had “defiled” the bed by “having intimate relations with his girlfriend in that bed,” and once she learned of this, she chopped the bed into pieces. In his motion to amend, David asked the District Court to account for Peggy’s destruction of the bed and to credit him with $2,000 out of Peggy’s share of the marital estate. The District Court declined to do so, in its September 29, 2005 order and memorandum, stating that “there was insufficient evidence to determine the fair market value of the used bed was anything more than de minimus [sic]” and that although Peggy admitted to destroying the bed, it was unclear if she had done so before or after service of the temporary restraining order. Accordingly, the court considered what remained of the bed to be part of the household furnishings equitably divided between the parties.
¶12 In support of his contention that the District Court erred in failing to credit him with $2,000 for the destruction of the bed, David claims that the destruction of the bed violated the temporary restraining order, thereby warranting the sanction, and that the District Court erred in finding that the bed had a de minimis value, given David testified that he purchased the bed one year earlier for $2,000 (although the record reveals that David purchased the bed on March 24, 2003, over two years prior to the time of trial, for $1,980).
¶13 Peggy argues that the District Court’s decision should be upheld because the date of the bed’s destruction is unspecified and it is unknown whether it occurred before or after service of the temporary restraining order. She also argues that the bed was clearly not in existence as the time of trial and there was nothing for the court to divide under § 40-4-202, MCA.
¶14 We agree that the District Court did not err in declining to grant David a $2,000 credit for the bed’s destruction. The court found that while Peggy admitted to the destruction, it was unclear if she destroyed the bed before or after service of the temporary restraining order. To prevail on appeal, David must demonstrate that this finding is clearly erroneous, but he has failed to present any evidence that Peggy destroyed the bed after service of the temporary restraining order. As such, he has not established clear error on the part of the District Court.
¶15 Furthermore, even assuming, arguendo, that Peggy destroyed the bed after service of the temporary restraining order, David has failed to establish that the District Court’s finding as to the fair market value of the bed-namely, that it is nothing more than “de minimis”-is clearly erroneous. Although David has produced evidence that the bed had a purchase price of $1,980, we have held that there are three essential principles in determining valuation of marital property subject to dissolution: “(1) proper valuation is not tied to a specific event, (2) there may be more than one valuation point, depending on the kind of property involved, and (3) preferably, valuation should occur at the time of distribution, or, stated another way, present fair market values should be used.” In re Marriage of Pospisil, 2000 MT 132, ¶ 44, 299 Mont. 527, ¶ 44, 1 P.3d 364, ¶ 44 (citing In re Marriage of Krause, 200 Mont. 368, 379, 654 P.2d 963, 968 (1982)). Furthermore, “these principles are tempered by the rule that a district court has broad discretion in property distribution.” Pospisil, ¶ 44. As long as the valuation of property in a dissolution is reasonable in light of all the evidence submitted, we will not disturb the finding on appeal. In re Marriage of Bartsch, 2004 MT 99, ¶ 24, 321 Mont. 28, ¶ 24, 88 P.3d 1263, ¶ 24. The bed was over two years old at the time of dissolution, and no party presented any evidence on its fair market value immediately prior to destruction. Accordingly, David has not established clear error in the District Court’s finding that the bed’s value was de minimis, and we affirm the decision of the District Court denying David’s request for a $2,000 credit.
¶16 Issue Two. Did the District Court err by leaving David financially exposed to a VA loan foreclosure on a residence awarded to Peggy?
¶17 David argues that the District Court erred by leaving him financially exposed to a potential VA loan foreclosure on the family home, which the District Court awarded to Peggy. As an Army veteran, David qualified for a VA home loan, which he used to finance the family home. David claims that the terms of the loan require him to pay off the loan in full or face a post-foreclosure judgment entered against him. In awarding the home to Peggy, the District Court ordered her to sell or refinance the property within 36 months so that David did not appear as an obligor on the mortgage. The court stated that if she failed to do this, the property would be sold and the net proceeds distributed equally between the parties.
¶18 David claims that the District Court’s action in awarding the home to Peggy under the provision that she sell or refinance the home within 36 months was “a failure of conscientious judgment that mandates reversal.” However, David fails to show how granting this period of time in which to sell or refinance the house constitutes “a failure of conscientious judgment” by the District Court. David cites no legal authority in support of this conclusory assertion, as required by M. R. App. P. 12(l)f., nor does he explain why granting this time period exceeds the bounds of reason resulting in a substantial injustice. Accordingly, we conclude that the District Court did not abuse its discretion in granting this time period.
¶19 Issue Three. Did the District Court fail to make adequate findings in awarding maintenance?
¶20 David next argues that the District Court failed to make any findings as to Peggy’s budget or necessary needs. As a result, David claims that there is “no recordation of the essential and determining facts upon which the District Court used to make its determination of maintenance.” He alleges that the District Court was merely “pulling a number out of the air” when it awarded maintenance to Peggy. David claims that the District Court’s determination is “manifestly deficient” to justify the maintenance request under § 40-4-203, MCA.
¶21 Section 40-4-203, MCA, governs maintenance awards in a dissolution proceeding. Section 40-4-203(1) provides, in pertinent part, as follows:
(1) In a proceeding for dissolution of marriage..., the court may grant a maintenance order for either spouse only if it finds that the spouse seeking maintenance:
(a) lacks sufficient property to provide for his reasonable needs; and
(b) is unable to support himself through appropriate employment...
To grant a maintenance order under the statute, a district court needs to find: (1) that the spouse seeking maintenance lacks sufficient property to provide for his or her reasonable needs and (2) is unable to support himself or herself through appropriate employment. See In re Marriage of Bee, 2002 MT 49, ¶ 28, 309 Mont. 34, ¶ 28, 43 P.3d 903, ¶ 28.
¶22 Here, the District Court found that Peggy was unable to support herself and maintain her lifestyle through her employment, thus satisfying the finding required by § 40-4-203(l)(b), MCA. However, the court failed to make any finding as to whether Peggy lacked sufficient property to provide for her reasonable needs, as required by § 40-4-203(l)(a), MCA. We hold that the District Court erred in failing to make the required findings under § 40-4-203(1), MCA, to justify an award of maintenance.
¶23 Furthermore, in issuing an order of maintenance, § 40-4-203(2), MCA, requires a district court to “consider!] all relevant facts including”:
(a) the financial resources of the party seeking maintenance, including marital property apportioned to him, and his ability to meet his needs independently, including the extent to which a provision for support of a child living with the party includes a stun for that party as custodian;
(b) the time necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment;
(c) the standard of living established during the marriage;
(d) the duration of the marriage;
(e) the age and the physical and emotional condition of the spouse seeking maintenance; and
(f) the ability of the spouse from whom maintenance is sought to meet his needs while meeting those of the spouse seeking maintenance.
Although a district court must consider each of these factors, “it need not make a specific finding relating to each, provided that this Court can determine the trial judge actually considered each factor.” Rudolf, ¶ 27; see e.g. In re Marriage of Haines, 2002 MT 182, ¶ 18, 311 Mont. 70, ¶ 18, 53 P.3d 378, ¶ 18. “These factors must be considered by the district court as a whole in the determination of a final maintenance award.” Rudolf, ¶ 27.
¶24 Here, David raises the subsection (2) factors only tangentially. He does not develop an argument with respect to these factors. Therefore, we will not consider them further. See ¶ 18 n.l, supra.
¶25 We hold that the award of maintenance to Peggy is unsupported, since the District Court failed to make both of the preliminary findings required by § 40-4-203(1), MCA.
¶26 Issue Four. Did the District Court err in making the maintenance award for the duration of Peggy’s lifetime or until she remarries, without making findings as to how this maintenance award could be covered long-term?
¶27 David claims that the District Court erred in failing to address how the award of lifetime maintenance for Peggy could be funded in light of David’s age and the possibility of his retirement in the near future. David raised this issue in his motion to amend, but the District Court determined that § 40-4-208, MCA, provided him with “adequate protection from an unconscionable maintenance obligation in the event there is a substantial and continuing change in his or [Peggy’s] circumstances.”
¶28 David contends that § 40-4-208, MCA, provides him with little comfort given the heavy burden of showing unconscionability that David claims the statute and this Court place on a party seeking modification of a maintenance award. Peggy argues that all the factors enumerated in § 40-4-203(2)(a)-(f), MCA, were met, and that the court specifically took David’s ability to pay into account in its findings. Peggy further argues that David presented no testimony indicating that his income would drop, and she agrees with the District Court in that § 40-4-208, MCA, provides him with an opportunity to petition for modification of maintenance.
¶29 Section 40-4-208, MCA, governs modification of maintenance. Most relevant to this appeal, § 40-4-208(2)(b)(i), MCA, provides: “Except as provided in 40-4-251 through 40-4-258, whenever the decree proposed for modification contains provisions relating to maintenance or support, modification under subsection (1) may only be made: (i) upon a showing of changed circumstances so substantial and continuing as to make the terms unconscionable ....” We have declined to create a definition of unconscionability and our interpretation of what is unconscionable is made subject to the underlying facts on a case-by-case basis. Olson, ¶ 12. A trial court must find both substantial and continuing changes and unconscionability before modifying a previous order of support. In re Marriage of Schmieding, 2003 MT 246, ¶ 36, 317 Mont. 320, ¶ 36, 77 P.3d 216, ¶ 36.
¶30 We agree with David that the District Court erred in making an award of lifetime maintenance for Peggy. Section 40-4-203(2)(f), MCA, requires a District Court to consider “the ability of the spouse from whom maintenance is sought to meet his needs while meeting those of the spouse seeking maintenance.” While the District Court entered findings as to David’s ability to pay maintenance at the present time based on his income as an apprentice electrician and his VA benefits, the court did not enter any findings as to how the maintenance award could be funded long-term. David testified in this regard that he is approaching retirement age and that he has degenerative health problems. Furthermore, he stated that he would have to work over twenty years to receive federal government retirement benefits; however, due to his health condition, he predicted he might work only five or six more years. This testimony indicates that David’s financial situation is likely to change in the near future due to retirement or an inability to work-a fact which bears on his “ability ... to meet his needs while meeting those of [Peggy]” over the long-term and which, therefore, must be considered in evaluating Peggy’s request for lifetime maintenance. Section 40-4-203(2)(f), MCA. Given his testimony, the fact that David may later return to court and seek relief under § 40-4-208, MCA, on the ground of “changed circumstances so substantial and continuing as to make the terms [of the decree] unconscionable” does not supplant the requirement that his ability to meet his needs while meeting those of Peggy over the long-term be considered before Peggy’s request for lifetime maintenance is granted.
¶31 Because the District Court did not consider David’s ability to meet his needs and those of Peggy over the long-term, relying instead on his ability to seek relief under § 40-4-208, MCA, we hold that the District Court erred in making an award of lifetime maintenance for Peggy.
CONCLUSION
¶32 David has failed to demonstrate that the District Court erred in not granting him a $2,000 credit for the destruction of the bed. Likewise, David has failed to show how granting Peggy 36 months to refinance or sell the family home was an abuse of discretion by the District Court. However, because the District Court failed to make both of the preliminary findings required by § 40-4-203(1), MCA, the award of lifetime maintenance to Peggy is unsupported. We vacate that award and remand the matter to the District Court for reconsideration of Peggy’s maintenance request under a proper and complete application of § 40-4-203, MCA, including consideration of David’s ability to fund the maintenance long-term.
¶33 Affirmed in part and reversed in part.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, COTTER and WARNER concur.
“The argument shall contain the contentions of the appellant with respect to the issues presented, and the reasons therefore, with citations to the authorities, statutes, and pages of the record relied on.” M.R.App.P. 12(l)(f). “ 'Under Rule 23, M.R.App.P. [now M.R.App.P. 12(l)(f).] it is not this Court’s obligation to conduct legal research on appellant’s behalf, to guess as to his precise position, or to develop legal analysis that may lend support to his position.’ ” State v. St. Germain, 2007 MT 28, ¶ 41 n. 1, 336 Mont. 17, ¶ 41 n. 1, 153 P.3d 591, ¶ 41 n. 1 (quoting In re Estate of Bayers, 1999 MT 154, ¶ 19, 295 Mont. 89, ¶ 19, 983 P.2d 339, ¶ 19).
In reaching this holding, we emphasize that we are not introducing a new requisite for awarding maintenance under § 40-4-203, MCA. The necessity of considering David’s ability to pay over the long-term is based squarely on the facts presented here.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant Joseph Curtis Morrison (Morrison) appeals from the order of the Sixteenth Judicial District Court, Rosebud County, revoking his suspended sentence. We affirm.
¶2 We address the following issue:
¶3 Did the District Court have jurisdiction to consider and grant the State’s petition to revoke Morrison’s five-year suspended sentence prior to Morrison beginning to serve the five-year suspended sentence?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 On January 10,2005, Morrison entered a plea agreement whereby he pled guilty to driving under the influence of alcohol, his fourth or subsequent offense, a felony, in violation of § 61-8-401, MCA. The District Court sentenced Morrison to the Montana Department of Corrections (DOC) for thirteen months followed by a consecutive, suspended sentence to the Montana State Prison (MSP) for five years with conditions. As a part of Morrison’s thirteen-month sentence he was to be “screened for placement at the Warm Springs Addictions Treatment & Change Program WATCh’ by the Department of Corrections” and upon successful completion of WATCh, or a chemical dependency treatment program determined by the DOC, the remainder of his thirteen-month sentence was to be suspended.
¶5 On August 19, 2005, Morrison filed a pro se motion for an order suspending the balance of his thirteen-month sentence because he had completed an Intensive Treatment Program Unit (ITU). The State initially opposed the motion because the ITU program is not as intensive as the WATCh program. However, the parties eventually stipulated that Morrison had successfully completed a qualifying chemical dependency treatment program. As a result, the remaining seven months of Morrison’s thirteen-month incarceration were suspended, and he was released from MSP. As a condition of his release, Morrison was instructed to “[rjeport in person to John Uden, Miles City Probation and Parole, on November 14,2005.” Morrison did not contact Officer Uden. On December 5, 2005, the County Attorney filed a petition to revoke Morrison’s suspended sentence on the basis of his failure to satisfy the “reporting” condition of his suspended sentence.
¶6 At the revocation hearing, Morrison moved to dismiss the petition, contending that, pursuant to § 67-8-731, MCA, the remainder of the thirteen-month sentence was not a “suspended sentence” but rather a probationary period that could not be revoked by filing a petition to revoke a suspended sentence. Morrison also argued that the petition to revoke was untimely filed pursuant to § 46-18-203, MCA, because in order to revoke the five-year suspended sentence the petition must be “filed during the period of suspension.” In sum, Morrison contended that the court should dismiss the State’s petition as erroneously filed.
¶7 In defense of its petition, the State clarified that it sought to revoke only the five-year suspended sentence and not the remainder of the thirteen-month sentence. The State also argued that the thirteen-month sentence and the five-year suspended sentence “stacked” together, allowing for revocation of the five-year suspended sentence based on a violation occurring while Morrison served the remainder of his thirteen-month sentence on probation. The District Court agreed with the State. First, the court concluded that there was no difference between a probationary period and a suspended sentence and, consequently, the remainder of the thirteen-month sentence was a “suspended sentence” that could be revoked. Morrison has not challenged this conclusion on appeal. Second, the court concluded that the thirteen-month and five-year suspended sentences “stacked,” such that the court could properly hear the petition to revoke the five-year suspended sentence based on a violation occurring during the thirteen-month sentence. Accordingly, the court denied Morrison’s motion to dismiss the petition.
¶8 At the conclusion of the hearing, the court determined that Morrison had “violated the condition of probation and suspended sentences” for “both the 13-month and the five-year” sentences. Subsequently, the court revoked both the remainder of Morrison’s thirteen-month sentence and his five-year sentence, committing him to the DOC for “five years and one month[.]” Morrison appeals the revocation of his five-year suspended sentence.
STANDARD OF REVIEW
¶9 We review a district court’s decision to revoke a defendant’s suspended sentence to determine if there was an abuse of discretion. State v. Osborne, 2007 MT 217, ¶ 8, 339 Mont. 45, ¶ 8, 167 P.3d 405, ¶ 8. Where the issue is whether the court had authority to take a specific action, the question is one of law, and our review is plenary. State v. Richardson, 2000 MT 72, ¶ 8, 299 Mont. 102, ¶ 8, 997 P.2d 786, ¶ 8.
DISCUSSION
¶10 As a preliminary matter, we address Morrison’s argument that the State has raised a new theory on appeal and that “[flor this reason alone, the Court should reject the [State’s] argument.” We deem issues which are presented for the first time on appeal to be untimely and will not consider them. State v. Adgerson, 2003 MT 284, ¶ 12, 318 Mont. 22, ¶ 12, 78 P.3d 850, ¶ 12. “A party may not raise new arguments or change its legal theory on appeal because it is fundamentally unfair to fault the trial court for failing to rule on an issue it was never given the opportunity to consider.” Adgerson, ¶ 12.
¶11 The State argues on appeal that “Morrison was serving a single sentence for a single offense, which became an entirely suspended sentence when Morrison was placed on probation.” The State contends that the “suspended terms have to merge” in order to encourage rehabilitation and avoid the absurd result of permitting a “probationer to violate at the end of the 13-month DOC commitment without risking possible revocation of the remaining five-year (or less) suspended sentence.” Morrison replies that the State’s argument that the suspended sentences “merge” into a “single sentence” is a new theory on appeal because at the revocation hearing the State argued that Morrison had two separate sentences, albeit “stacking” together. Essentially, Morrison’s change in theory complaint stems from the State’s assertion of “stacking” two sentences in the District Court versus the State’s assertion of one “merged” sentence on appeal.
¶12 However, whether using the “stacked” or “merged” theory, the underlying premise of the State’s argument is the same: that a violation occurring during the thirteen-month sentence provides a basis for revoking the five-year suspended sentence even though the violation occurred prior to commencement of that part of the sentence. Accordingly, the difference between the “merge” and “stack” theories is de minimus and does not merit complete rejection of the State’s argument on appeal. Moreover, whether we consider the thirteen-month sentence and five-year sentence as separate and consecutive or as a combined sentence, they arise out of the same sentencing order for the same underlying offense, and therefore, the jurisdictional issue Morrison raises on appeal remains and must be addressed.
¶13 Did the District Court have jurisdiction to consider and grant the State’s petition to revoke Morrison’s five-year suspended sentence prior to Morrison beginning to serve the five-year suspended sentence?
¶14 Morrison argues that the District Court did not have jurisdiction to revoke his five-year suspended sentence prior to commencement of that portion of his sentence. Although acknowledging our holdings to the contrary in State v. Sullivan, 197 Mont. 395, 642 P.2d 1008 (1982), and Matter of Ratzlaff, 172 Mont. 439, 564 P.2d 1312 (1977), Morrison notes the language of § 46-18-203(2), MCA, referencing the filing of a revocation petition “during the period of suspension or deferral,” and asserts that the 1983 amendment to this statute now prohibits a district court from revoking a suspended sentence unless the petition is filed after the period of suspension has begun. Morrison asserts that, as a result of the 1983 amendment, our prior decisions are no longer valid authority.
¶15 In Sullivan, the defendant’s suspended sentence was revoked while he was on parole from his prison sentence and before he had begun serving the suspended portion of his sentence. Sullivan, 197 Mont. at 399, 642 P.2d at 1010. In approving of the prior revocation of Sullivan’s suspended sentence, we relied on our previous decision in Ratzlaff, which we determined answered Sullivan’s contention “in spirit if not factually[.]” Sullivan, 197 Mont. at 400, 642 P.2d at 1010. In Ratzlaff, the defendant was sentenced to twenty-five years in MSP with ten years suspended. Ratzlaff was released on parole after serving approximately three years in prison and subsequently violated the conditions of his release. As a result, the district court revoked his ten-year suspended sentence for violations of both probationary and parole conditions, Ratzlaff, 172 Mont. at 441, 564 P.2d at 1313, and he petitioned this Court for post-conviction relief. We denied the petition, and as we later explained in Sullivan, our decision in Ratzlaff was based on the “necessary implication that a suspended sentence may be revoked before the defendant actually begins serving probation.” Sullivan, 197 Mont. at 400, 642 P.2d at 1010. We further explained that:
What comes out of these cases is the strong public policy that if a person convicted of a crime, and granted a period of probation as part of the sentence, should commit offenses of such nature as to demonstrate to the court that he is unworthy of probation, the court has the power to revoke or change the order of probation both during the period of probation, and before the period of probation commences.
Sullivan, 197 Mont. at 401, 642 P.2d at 1011.
¶16 We reaffirmed Sullivan in Christofferson v. State, 272 Mont. 518, 901 P.2d 588 (1995). There, the district court revoked the defendant’s suspended sentence while he was still on parole and prior to the beginning of his suspended sentence. We stated that “a suspension of sentence may be revoked for acts of a probationer after sentence is imposed but before the probationer actually begins serving the suspended sentence.” Christofferson, 272 Mont. at 521, 901 P.2d at 589. Then, in State v. Vallier, 2000 MT 225, 301 Mont. 228, 8 P.3d 112, we extended the Sullivan holding to incarcerated persons, concluding that where an individual has not met the terms and conditions of his suspended sentence, such as completion of a sexual offender treatment program while incarcerated, the suspended sentence may be revoked, even before the individual actually begins serving the suspended sentence. Vallier, ¶¶ 9, 13.
¶17 Section 46-18-203, MCA, provides, in pertinent part:
(1) Upon the filling of a petition for revocation showing probable cause that the offender has violated any condition of a sentence or any condition of a deferred imposition of sentence the judge may issue an order for a hearing on revocation.
(2) The petition for a revocation must be filed with the sentencing court during the period of suspension or deferral. Expiration of the period of suspension or deferral after the petition is filed does not deprive the court of its jurisdiction to rule on the petition.
Prior to 1983, the language in subsection (2) of § 46-18-203, MCA, did not exist as a separate subsection. Rather, § 46-18-203, MCA (1981), read in pertinent part that:
A judge, magistrate, or justice of the peace who has suspended the execution of a sentence or deferred the imposition of a sentence of imprisonment under 46-18-201 or his successor is authorized, during the period of the suspended sentence or deferred imposition of sentence, in his discretion, to revoke the suspension or impose sentence and order the person committed. [Emphasis added.]
The 1983 amendment deleted the above-emphasized language from this paragraph and placed similar language under the new subsection (2). Introduced as Senate Bill 409, the amendment was passed by the 1983 Session without contention. The bill was filed at the request of the Department of Justice and testimony from an Assistant Attorney General indicated that the amendment was a reaction to this Court’s decision in Felix v. Mohler, 195 Mont. 391, 636 P.2d 830 (1981). In Felix, this Court, applying § 46-18-203, MCA (1981), held that a district court’s jurisdiction to revoke a suspended sentence or a deferred sentence only extended “through the running of the suspended or deferred sentence, regardless of whether a petition for revocation [had] been filed prior to the termination of the suspended or deferred sentence.” Felix, 195 Mont. at 394, 636 P.2d at 832. According to the testimony before the Senate Judiciary Committee, Felix effectively gave probationers serving a suspended or deferred sentence “a carte blanche to violate the conditions of their probation at any time during the final days of their probation because the court [would] be unable to hold a hearing on the petition” prior to expiration of the probation, “even if a petition to revoke [was] filed during the period of suspension or deferral.” The addition of language within new subsection (2) of the statute addressed this problem by clarifying that the court could act upon a petition to revoke “even after the period of suspension or deferral [had] run ....” Thus, the 1983 amendment had no impact upon the prior decisions addressing a court’s authority to revoke a suspended or deferred sentence upon a petition filed prior to the commencement of a suspended or deferred sentence, and decisions thereafter have continued to apply this rule. Contrary to Morrison’s contention, Sullivan and these other cases remain good law and support this interpretation of § 46-18-203(2), MCA.
¶18 Here, Morrison’s five-year suspended sentence was revoked pursuant to a petition filed prior to commencement of that sentence and while he was still serving the remainder of his thirteen-month DUI sentence. Pursuant to § 46-18-203, MCA, and as explained in Sullivan, Christofferson, and Vallier, the District Court had authority to revoke Morrison’s five-year suspended sentence prior to the start of that sentence when a petition for revocation asserting a violation of condition was filed. The State filed such a petition to revoke Morrison’s five-year suspended sentence based on his failure to report to his supervising officer while completing his thirteen-month sentence on probation. The District Court held a revocation hearing, heard testimony from Officer Uden, as well as Morrison, and determined that Morrison understood the condition to report to Officer Uden but failed to do so. Morrison does not allege that this finding was an abuse of discretion or is unsupported by the evidence, only that the District Court lacked authority to revoke his suspended sentence. As explained herein, the District Court had such authority pursuant to § 46-18-203, MCA.
¶19 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES WARNER and LEAPHART concur.
Morrison has not renewed this argument on appeal.
While Morrison argues that the District Court was without jurisdiction to entertain the petition to revoke his sentence, we note that the court had personal jurisdiction over Morrison and had general subject matter jurisdiction over revocation petitions. Although § 46-18-203, MCA, uses the term “jurisdiction,” Morrison’s argument is more properly framed as a challenge to the court’s statutory authority to revoke Morrison’s sentence.
|
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Appellant Tara Ashmore appeals the denial of her motion to dismiss in the Fourth Judicial District, Missoula County. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 On July 16, 2005, Missoula County Sheriffs Reserve Deputies Jarret Hoke and Audrey Kramer were on a special patrol of the Johnsrud Recreational Area of the Blackfoot River in Missoula County. As Hoke was completing a routine traffic stop on Highway 200, Ashmore drove by at a high rate of speed honking her horn continually. Hoke subsequently stopped her for Unnecessary Use of a Horn or Other Warning Device, a misdemeanor under § 61-9-401(1), MCA.
¶3 During the traffic stop Ashmore was angry and belligerent towards Hoke. Initially, she threw her driver’s license and registration towards Hoke, but then handed it to him when he requested she do so. After Hoke had completed the standard driver’s license and warrant checks, he returned her identification information to her. As Hoke was explaining to Ashmore why she should not honk her horn excessively while passing an emergency vehicle, Ashmore put her vehicle in drive, acted as though she was about to drive off, and then told Hoke that she “did not want to hear it.” Hoke instructed her to take the vehicle out of gear, and informed her that if she did not listen to him, he would give Ashmore a ticket. Ashmore did so, and then proceeded to shower Hoke with obscene expletives, throwing her driver’s license, proof of insurance, and registration at Hoke again.
¶4 As Hoke was writing Ashmore a citation, she exited her vehicle and started taking pictures of him. Reserve Deputy Scott King, who pulled up and was assisting Hoke, told her to get back in her vehicle. She resisted at first and tried to take more pictures, but soon complied. Hoke then issued her a citation for Unnecessary Use of a Horn or Other Warning Device, and also for Disorderly Conduct, a misdemeanor in violation of § 45-8-101, MCA. Ashmore threw the citation on the passenger seat of the vehicle, directed another obscene expletive towards Hoke, and then, according to the police report, “squealed her tires and held her horn down as she accelerated away from the traffic stop.”
¶5 Following a bench trial in Justice Court, Ashmore was convicted of one count of Disorderly Conduct and one count of Unnecessary Use of a Horn or Other Warning Device. She appealed her conviction to the District Court. On appeal she filed a motion to dismiss the Disorderly Conduct charge. Ashmore maintained that her conduct did not violate the statute as a matter of law because only a few people, the police officers, were disturbed by it. The District Court denied her motion to dismiss. After this denial, Ashmore pled guilty and was sentenced pursuant to a plea agreement which preserved her right to appeal. She now timely appeals the denial of her motion to dismiss.
ISSUE
¶6 We state the issue on appeal as follows: Did the District Court err in denying Ashmore’s motion to dismiss?
STANDARD OF REVIEW
¶7 “The grant or denial of a motion to dismiss in a criminal case is a question of law which we review de novo on appeal. Our standard of review is plenary, and we determine whether a district court’s conclusion is correct.” State v. Pyette, 2007 MT 119, ¶ 11, 337 Mont. 265, ¶ 11, 159 P.3d 232, ¶ 11.
DISCUSSION
¶8 Did the District Court err in denying Ashmore’s motion to dismiss?
¶9 Ashmore maintains the District Court erred in denying her motion to dismiss. She asserts that the Disorderly Conduct statute “requires at a minimum that a defendant engage in behavior that disturbs a number of people.” Ashmore asserts there were no witnesses who observed her behavior, and that of the three reserve deputies who were involved in the traffic stop-Hoke, Kramer, and King-only Hoke and Kramer actually witnessed the conduct allegedly giving rise to the Disorderly Conduct violation. Accordingly, Ashmore maintains the State failed to “present any evidence establishing probable cause that Ms. Ashmore disturbed the peace by disturbing more than a few people with her conduct.” Ashmore claims that her interpretation of § 45-8-101(1), MCA, is supported by the Criminal Law Commission Comments to the Disorderly Conduct statute and our decision in Kleinsasser v. State, 2002 MT 36, 308 Mont. 325, 42 P.3d 801.
¶10 The State urges us to affirm the District Court’s decision. The State asserts that “[n]o Montana decision has held specifically that a certain minimum number of people must be affected in order for behavior to ‘disturb the peace’ within the meaning of the disorderly conduct statute.” The State argues that the plain language of the statute makes disturbance of the peace an element of the disorderly conduct, but does not otherwise contain any numerical requirement of how many “others” must be affected by the defendant’s conduct in order to give rise to a violation of the statute. The State maintains that “the number of people affected is not, on its own, determinative of whether ‘the peace’ is disturbed. Rather, it is only one factor among several that should be considered.” The State asserts that this position is supported by our prior decisions, including City of Billings v. Batten, 218 Mont. 64, 705 P.2d 1120 (1985), State v. Turley, 164 Mont. 231, 521 P.2d 690 (1974), and State v. Lowery, 233 Mont. 96, 759 P.2d 158 (1988). Additionally, the State asserts that Kleinsasser is distinguishable. Accordingly, the State maintains that the allegations in the affidavit demonstrated probable cause sufficient to support a finding that Ashmore violated the Disorderly Conduct statute, and that the District Court’s denial of her motion to dismiss should be affirmed.
¶11 In analyzing these arguments, we first turn to the relevant portions of the Disorderly Conduct statute under which Ashmore was charged. They read as follows:
(1) A person commits the offense of disorderly conduct if he knowingly disturbs the peace by:
(a) quarreling, challenging to fight, or fighting;
(b) making loud or unusual noises;
(c) using threatening, profane, or abusive language ....
Sections 45-8-10 l(l)(a) through (c), MCA.
¶12 As the State correctly notes, our task in interpreting statutes is “simply to ascertain and declare what is in terms or in substance contained [in the statute], not to insert what has been omitted or to omit what has been inserted.” Section 1-2-101, MCA. Here, however, there is a disparity between the plain language of the statute and the Criminal Law Commission Comments which provide guidance on how this statute is to be applied. The relevant portions of the Comments read as follows:
The intent of the provision is to use somewhat broad, general terms to establish a foundation for the offense and leave the application to the facts of a particular case. Two important qualifications are specified in making the application, however. First, the offender must knowingly make a disturbance of the enumerated kind, and second, the behavior must disturb “others.” It is not sufficient that a single person or a very few persons have grounds for complaint.
¶13 The statute, on the other hand, does not specify that conduct must disturb “others,” or otherwise indicate that conduct affecting “a single person or a very few persons” is insufficient to give rise to a violation of the statute. In fact, the statute only requires that a defendant “knowingly disturb the peace” by committing one of the acts enumerated in subsections (a) through (j) of the statute, none of which contains a numerical requirement.
¶14 The disparity between the Comments and the plain language of the statute itself raises the question of whether it is possible to “disturb the peace” by specific acts that affect only one, or a few persons, or whether greater numbers of persons must be affected by the enumerated acts before a violation of the statute can take place. The State urges us to ameliorate this disparity by giving little if any weight to the Commission Comments, given that this phraseology, i.e., a reference to “others,” does not appear anywhere in the statute itself. Ashmore, however, asserts that this course is foreclosed to us, given our holding in Kleinsasser where we cited approvingly to these portions of the Commission Comments.
¶15 A review of our prior decisions under this statute shows that, in spite of the language in the Comments, we have never adopted a strict numerical requirement respecting how many people need be affected by conduct before it “disturbs the peace.” As we noted in Lowery,
The criminal law commission comments to § 45-8-101, MCA, state that, for a charge of breach of the peace, “[i]t is not sufficient that a single person or a very few persons have grounds for complaint.” However, in City of Billings v. Batten, 705 P.2d 1120, 42 St.Rep. 1398, defendant was convicted of using “fighting words” toward his neighbor in the presence of the neighbor’s family and several passers-by and within the hearing of other neighbors. The total number of persons present was about ten. In City of Whitefish v. O’Shaughnessy (Mont. 1985), 704 P.2d 1021, 42 St.Rep. 928, defendant was convicted of using “fighting words” in the presence of two friends and a police officer.
Lowery, 223 Mont. at 100, 759 P.2d at 160.
¶16 Similarly, in Batten, we noted the following:
Although we have never decided how many people must be disturbed before the peace is disturbed, one Montana case involving the crime of breach of the peace, former § 94-3560, R.C.M. 1947, provides guidance. In State v. Turley (1974), 164 Mont. 231, 521 P.2d 690, Turley’s conviction for disturbing the peace was upheld. Section 94-3560, R.C.M. 1947, prohibited disturbances of the peace by “loud or unusual noise or tumultuous or offensive conduct or threatening, quarrelling, challenging to fight or fighting.” Turley was convicted under this statute when only he, his wife, and a third party were present to witness his conduct.
Batten, 218 Mont. at 71, 705 P.2d at 1125.
¶17 As these cases demonstrate, we have focused our analysis not upon numbers of persons affected, but rather upon whether the defendant knowingly disturbed the peace by committing one of the acts enumerated in the statute. While the number of individuals affected by the conduct may play a role in whether the peace has been disturbed, it is not necessarily a dispositive factor. Instead, determination of whether the peace has been disturbed should turn on “the application [of the statute] to the facts of a particular case.”
¶18 This is, in fact, the approach we applied in Kleinsasser, where we considered whether officers had particularized suspicion to justify an investigative stop due to an alleged violation of § 45-8-101, MCA. In that case, an officer observed Kleinsasser’s car parked off the side of the road around 10 p.m. at night, and saw an individual near the passenger door of the car urinating off the side of the road. Kleinsasser, ¶ 3. The officer pulled over and conducted an investigative stop of Kleinsasser, suspected he was under the influence of alcohol, and when Kleinsasser refused a preliminary breath test, arrested him for driving under the influence of alcohol. Kleinsasser, ¶ 6. The officer seized Kleinsasser’s license and it was later suspended.
¶19 Kleinsasser challenged the suspension of his license, but the district court denied his petition to have his license reinstated. Kleinsasser appealed the district court’s decision, and argued that his license had been illegally seized because the officer lacked particularized suspicion to justify the stop, and that the observed behavior did not violate the laws of Montana. Kleinsasser, ¶¶ 14, 15. The State argued that the observed behavior of Kleinsasser constituted a violation of the Disorderly Conduct statute, in particular § 45-8-101(i), MCA, and that the officer did have particularized suspicion justifying the stop. Kleinsasser, ¶ 15.
¶20 We disagreed with the State, and reversed the District Court, finding that the observed conduct of Kleinsasser did not constitute a violation of § 45-8-101(i), MCA. Thus, there was no particularized suspicion justifying the investigative stop. The proscribed act described in subsection (i) of the Disorderly Conduct statute reads as follows: “creating a hazardous or physically offensive condition by any act that serves no legitimate purpose ....” Section 45-8-101(i), MCA. We found that Kleinsasser’s conduct did not violate this statute for several reasons. On the one hand, we concluded that Kleinsasser’s conduct did not create a hazardous condition, and further that it served a legitimate purpose. Moreover, we determined that Kleinsasser’s act of urinating, given the time, manner, and conditions under which it occurred, was not “offensive.” After quoting the Commission Comments cited above at ¶ 12, we concluded as follows:
In the present case, the incident occurred in the dark of the night, in a rural location where, as Officer Palmer testified, there were no overhead lights of any kind and there was no other traffic around at the time. Moreover, there was no evidence that the behavior disturbed anyone other than Officers Leasure and Palmer, and neither officer was so disturbed by the behavior that they considered giving the individual a citation.
Kleinsasser, ¶ 21.
¶21 Contrary to Ashmore’s assertion, Kleinsasser does not stand for the proposition “that more than a few people must be disturbed by the alleged conduct” to constitute a disturbance of the peace in violation of § 45-8-101, MCA. Rather, the Court in Kleinsasser continued our prior practice of evaluating whether the commission of one of the enumerated acts in the statute led to a disturbance of the peace by the defendant, based upon “the facts of a particular case.” Aside from our quotation of the Commission Comments, nowhere in Kleinsasser did we imply or intimate that Kleinsasser’s conduct was not a violation of the statute solely because only two police officers witnessed it. Instead, we found the conduct was not “offensive” based on the fact that only two police officers witnessed it, and the fact that there “was no evidence that the behavior disturbed anyone other than Officers Leasure and Palmer, and neither officer was so disturbed by the behavior that they considered giving the individual a citation.” Kleinsasser, ¶ 21. (Emphasis added). Thus, our holding in that case was based on the fact that neither the officers, nor anyone else, was offended by the conduct, given the time, place, and manner of its occurrence. Thus, the conduct failed to satisfy any of the enumerated acts in the statute, particularly those in subsection (i).
¶22 This case, however, is distinguishable from Kleinsasser. The complaint filed against Ashmore alleges that Ashmore violated the Disorderly Conduct statute when she:
(1) Quarreled, challenged to fight or fought, by calling the police officer a “cocksucker” and/or other profanities, by resisting instructions of police officers to remain in or return to a vehicle, and by throwing items at officers of the law.
(2) Made loud or unusual noises by honking her horn excessively when unnecessary and yelling at officers of the peace.
(3) Used threatening, profane or abusive language, including but not limited to “fucking,” and “cocksucker” on one or more occasions, directed at officers of the peace.
¶23 We conclude that Ashmore’s conduct falls under the proscriptions set forth in the acts enumerated in subsections (a) through (c) of the Disorderly Conduct statute. Consequently, Ashmore’s conduct does not need to be deemed “offensive,” as was required under subsection (i) in Kleinsasser, but only needs to meet the requirements listed in subsections (a) through (c) of the statute-namely that Ashmore “quarrel[l], challeng[e] to fight, or fight[] ... mak[e] loud or unusual noises ... [or] us[e] threatening, profane, or abusive language ....” Sections 45-8-101(l)(a) through (c), MCA. Ashmore’s conduct more than satisfies these requirements.
¶24 Accordingly, the only question is whether these proscribed actions, when directed solely at police officers, could be found by a trier of fact to “disturb the peace,” and thus give rise to a violation of § 45-8-101, MCA. We hold that they can, and that nothing in our prior precedent under the Disorderly Conduct statute, including Kleinsasser, is inconsistent with this conclusion. Thus, we affirm the District Court’s denial of Ashmore’s motion to dismiss.
CONCLUSION
¶25 For these reasons, the District Court’s Order is affirmed.
CHIEF JUSTICE GRAY, JUSTICES NELSON, LEAPHART and RICE concur.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 In October 2004 Preston A. Madplume (Madplume) was charged with the offense of sexual intercourse without consent after DNA evidence revealed the presence of the accuser’s DNA on Madplume’s finger. An omnibus hearing was scheduled but was continued seventeen times at Madplume’s request. During this time Madplume signed a waiver of his right to a speedy trial. In September 2005 Madplume moved to suppress the DNA evidence on the ground that it was obtained without a warrant and therefore resulted from an unlawful search of his person. The District Court granted his motion. The State appealed and in January 2007 we reversed and remanded for further proceedings. Madplume’s omnibus hearing was ultimately held on March 14, 2007. On that date, he filed a motion to dismiss for violation of the right to a speedy trial. The District Court granted the motion without a hearing and the State appeals. We reverse and remand.
ISSUE
¶2 The question presented is whether the District Court properly granted Madplume’s motion to dismiss for violation of the right to a speedy trial.
FACTUAL AND PROCEDURAL BACKGROUND
¶3 The factual background of this case was presented in State v. Madplume, 2007 MT 11, 335 Mont. 290, 150 P.3d 956, and is not relevant to the issue before us; therefore, it will not be repeated here. This appeal concerns the procedural background of Madplume’s case only.
¶4 It is undisputed that 894 days had elapsed from the time Madplume was charged and the date on which he filed his motion to dismiss. Madplume argued to the District Court and to this Court on appeal that this passage of time resulted in a violation of his constitutional right to a speedy trial.
¶5 The District Court granted Madplume’s motion to dismiss. The State appeals.
STANDARD OF REVIEW
¶6 A criminal defendant’s claimed violation of the right to a speedy trial presents a question of constitutional law. We review a trial court’s resolution of such questions for correctness and will not disturb findings underlying a district court’s speedy trial ruling unless the findings are clearly erroneous. State v. Spang, 2007 MT 54, ¶ 7, 336 Mont. 184, ¶ 7, 153 P.3d 646, ¶ 7 (citation omitted).
DISCUSSION
¶7 Issue: Did the District Court properly grant Madplume’s motion to dismiss for violation of the right to a speedy trial ?
¶8 Madplume moved the District Court to dismiss the charges against him, asserting the State had violated his right to a speedy trial. The District Court granted his motion finding that he had been prejudiced by the lengthy delay and that the State had not met its burden of disproving prejudice. The State contends the District Court’s conclusion is erroneous.
¶9 We note that this case proceeded through the District Court and to this Court on appeal before we issued our decision in State v. Ariegwe, 2007 MT 204, 338 Mont. 442, 167 P.3d 815, in which we announced a comprehensively-revised speedy trial test that “more closely tracks the balancing approach envisioned by the [U.S.] Supreme Court in Barker, Doggett, and other post -Barker cases.” Ariegwe, ¶ 106. As a result, the parties argued to the District Court and that court ruled based on analysis of the standards set forth in City of Billings v. Bruce, 1998 MT 186, 290 Mont. 148, 965 P.2d 866, overruled in part by Ariegwe. Thus, the District Court did not have the opportunity to analyze the speedy trial issue under the new Ariegwe framework.
¶10 On appeal, the State filed its opening brief before Ariegwe was issued; however, Ariegwe’s new test was published before Madplume responded or the State replied. Neither party, however, analyzed the speedy trial issue under the newly-announced test but continued to rely upon a Bruce analysis. Since the timing of Ariegwe’s publication precluded the court and the parties from analyzing the speedy trial issue under this new framework, and as we recently did in State v. Smith, 2008 MT 7, ¶¶ 23-24, 341 Mont. 82, ¶¶ 23-24, 176 P.3d 258, ¶¶ 23-24, we deem it appropriate to remand this matter to the District Court without prejudice to a timely appeal thereafter by either party, with instruction that the District Court apply the Ariegwe analysis in resolving the speedy trial issues herein presented.
CONCLUSION
¶11 We reverse the District Court’s dismissal of Madplume’s case and remand for analysis under Ariegwe.
CHIEF JUSTICE GRAY, JUSTICES WARNER, LEAPHART and RICE concur.
Barker v. Wingo, 407 U.S. 514, 92 S. Ct. 2182 (1972).
Doggett v. United States, 505 U.S. 647, 112 S. Ct. 2686 (1992).
|
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JUSTICE NELSON
delivered the Opinion of the Court.
¶1 Chris McWilliams appeals his conviction in the District Court for the Sixth Judicial District, Park County, of issuing bad checks, a felony. We affirm.
¶2 McWilliams raises four issues on appeal which we have restated as follows:
¶3 1. Whether the District Court erred in denying McWilliams’ pretrial motion to dismiss the Information charging him with issuing bad checks.
¶4 2. Whether the District Court erred in denying McWilliams’ motion for a directed verdict at the close of the State’s case-in-chief.
¶5 3. Whether the District Court erred in denying McWilliams’ motion for judgment notwithstanding the verdict or, in the alternative, for a new trial.
¶6 4. Whether the District Court erred in sentencing McWilliams to pay restitution of sums that had been discharged by his bankruptcy proceeding.
FACTUAL AND PROCEDURAL BACKGROUND
¶7 A jury convicted McWilliams of issuing bad checks to Larry J ohns, d/b/a Big Sky Consignment, and Robert Curry, d/b/a Curry and Sons Electric. The facts surrounding the issuing of those checks are as follows.
¶8 In April 2001, McWilliams, d/b/a C & L Construction, agreed to construct a home for Dennis and Gwendolyn Noyes (the Noyeses) for the amount of $146,529.00. The construction was to be financed by a loan from Empire Bank in Livingston. The loan was initially approved in the amount of $169,000.00.
¶9 McWilliams had a business arrangement with Johns wherein McWilliams obtained a series of short term loans from Johns for $1,000.00 each. At the time of each loan, McWilliams gave Johns a check for $1,250.00. The checks were postdated to the date that repayment of the loan was due (typically 20 to 30 days after each loan was made). The additional $250.00 in each check was considered interest on the loan. In addition, with each loan, McWilliams and Johns executed a handwritten agreement wherein McWilliams agreed to convey to Johns the security interest in a flatbed trailer if the loan was not repaid in full. Johns made the last of these loans to McWilliams on December 26, 2001. In payment of that loan, McWilliams wrote Johns a check for $1,250.00 and postdated it for January 16, 2002.
¶10 McWilliams hired Curry as a subcontractor to do the electrical wiring on the Noyeses’ home. Curry completed the rough-in wiring on the home in September or October 2001, and the finish electrical work in November or December 2001. On January 7,2002, McWilliams went to Curry’s home and wrote him a check in the amount of $4,920.64 for the electrical work on the Noyeses’ home. Curry testified at trial that McWilliams told him that there currently were insufficient funds in the account to cover the check. McWilliams testified at trial that he wrote the check to Curry because he expected to receive a substantial final payment for the construction of the Noyeses’ home within a few days.
¶11 McWilliams’s wife, Angela, testified that on January 8,2002, she heard a rumor that the Noyeses were not going to make the final payment for the construction of the home. Angela further testified that after several unsuccessful attempts to contact Dennis Noyes, they decided that Angela should seek the advice of someone from their bank. Angela visited the bank on January 9, 2002. She testified that she was advised that a stop payment was better than an insufficient funds check, hence she stopped payment on both the check to Johns for $1,250.00 and the check to Curry for $4,920.64.
¶12 McWilliams and his wife had filed for Chapter 13 bankruptcy in May 1997. On January 24, 2002, they converted their Chapter 13 bankruptcy action to a Chapter 7. That same day, McWilliams was arrested on charges based upon allegations of another unpaid subcontractor who subsequently was paid. McWilliams was released the following day. One of the conditions of his release was that he close all of his checking accounts.
¶13 On January 31, 2002, Dennis Noyes contacted the Park County Sheriffs Department to file a complaint against McWilliams for theft in relation to various issues that had arisen in the construction of the home. At about the same time, Johns and Curry each brought complaints against McWilliams in relation to the check transactions described above.
¶14 In February 2002, the State brought criminal charges against McWilliams for theft and issuing bad checks. McWilliams was arrested on February 21,2002, on these charges and released the same day. On April 29, 2002, McWilliams filed a motion to dismiss the Information charging him with issuing bad checks. The District Court denied the motion in writing but without written comment.
¶15 McWilliams received his Chapter 7 discharge in bankruptcy on May 14, 2002. Thereafter, McWilliams and his wife moved to Oregon. McWilliams alleged that Park County Attorney Tara DePuy had full knowledge of his move and that the District Court had given permission for the move. He further alleged that he advised the court of his address in Oregon and how to contact him.
¶16 On July 13,2004, McWilliams was arrested in Deschutes County, Oregon, on a “Fugitive Information” issued by the Deschutes Comity District Attorney’s Office based upon a teletype from DePuy. Trial was held in the Park County District Court from November 30, 2004 to December 2,2004. At the close of the State’s case-in-chief, McWilliams’ counsel moved to dismiss the charges against McWilliams contending that the State had failed to meet its burden of proof. The District Court corrected counsel calling it a motion for a directed verdict and counsel agreed. The District Court denied the motion.
¶17 The jury acquitted McWilliams of the theft charge and found him guilty of the charge of Issuing Bad Checks, common scheme, a felony, in violation of § 45-6-316, MCA. Thereafter, McWilliams moved the court for judgment notwithstanding the verdict or, in the alternative, for a new trial. In his motion, McWilliams requested that, pursuant to § 46-16-702(3)(c), MCA, the court modify the jury’s verdict by finding him not guilty on the charge of issuing bad checks. In the alternative, McWilliams requested that, pursuant to § 46-16-702(3)(b), MCA, the court grant him a new trial. The court denied McWilliams’ alternative motions. The court subsequently deferred imposition of McWilliams’ sentence for four years subject to various terms and conditions including that he pay restitution, that he not possess a checking account unless approved by his probation officer, and that he perform 100 hours of community service each year.
¶18 McWilliams appealed the various orders and judgment of the District Court, and requested a stay of the sentence pending appeal, which the court granted.
Issue 1.
¶19 Whether the District Court erred in denying McWilliams’ pretrial motion to dismiss the Information charging him with issuing bad checks.
¶20 Shortly after the State filed the Information alleging that McWilliams committed the offense of issuing bad checks, McWilliams moved to dismiss the charge on the grounds that the series of transactions with Johns was an illegal series of deferred deposit loans within the meaning of Montana’s Deferred Deposit Loan Act (the Act), Title 31, chapter 1, part 7, Montana Code Annotated. In addition, McWilliams argued that the check to Curry was also a deferred deposit loan as defined in § 31-l-703(5)(a), MCA. McWilliams contended that he could not be criminally prosecuted for issuing those checks based on § 31-1-723(2), MCA, which provides that a licensee making deferred deposit loans may not threaten to use a criminal process to collect on the loan made to a consumer in this State. The District Court denied his motion. McWilliams contends that the District Court erred and he renews these arguments on appeal.
¶21 The State argues that whether the loan to McWilliams from Johns violated the Act is a civil matter between McWilliams and Johns, and the Act does not foreclose the State from prosecuting a bad check case. In addition, the State argues that McWilliams’ suggestion that the check to Curry constituted a deferred deposit loan is completely frivolous as the Act applies to loan arrangements and Curry was not a lender.
¶22 The denial of a motion to dismiss in a criminal case is a question of law and we review a district court’s conclusions of law to determine whether those conclusions are correct. State v. Tichenor, 2002 MT 311, ¶ 18, 313 Mont. 95, ¶ 18, 60 P.3d 454, ¶ 18 (citing State v. Hocevar, 2000 MT 157, ¶ 115, 300 Mont. 167, ¶ 115, 7 P.3d 329, ¶ 115; State v. Weaver, 1998 MT 167, ¶ 43, 290 Mont. 58, ¶ 43, 964 P.2d 713, ¶ 43).
¶23 The statute McWilliams relies on to support his contention that he cannot be criminally prosecuted for issuing the checks to Johns and Curry provides in pertinent part:
Prohibited acts. A licensee making deferred deposit loans may not commit, or have committed on behalf of the licensee, any of the following prohibited acts:
(2) threatening to use or using a criminal process in this or any other state to collect on the loan made to a consumer in this state or any civil process to collect the payment of deferred deposit loans not generally available to creditors to collect on loans in default.... [Emphasis added.]
Section 31-1-723, MCA. McWilliams fails to recognize that neither Johns nor Curry are licensees under this Act.
¶24 In addition, McWilliams relies on § 30-3-104, MCA, the statute defining negotiable instruments, to conclude that in order for an Instrument to meet the definition of a “check” under Montana law, it must be payable on demand. McWilliams argues that the checks to Johns and Curry were not payable on demand and were, instead, in the nature of a future promise, thus they were not checks within the meaning of § 30-3-104, MCA. Contrary to McWilliams’ assertions, neither check contained any type of restrictive endorsement and, although both Johns and Curry agreed to hold the checks for a short period of time, both checks were payable on demand.
¶25 McWilliams also argues that under § 45-2-211, MCA, consent is a defense and both Johns and Curry consented to hold the checks. This argument is also without merit. While Johns and Curry may have consented to take the checks and refrain from presenting them immediately, they did not consent to nonpayment of the checks or to having McWilliams stop payment on the checks altogether.
¶26 McWilliams cites State v. Patterson, 75 Mont. 315, 243 P. 355 (1926), in support of his contention that there has to be evidence of an intent to defraud at the time the check was given. As the State points out in its brief on appeal, the statute in effect at the time Patterson was decided provided:
Any person who, with the intent to defraud, shall make or draw or utter or deliver any check, draft, or order for the payment of money ... knowing at the time that the maker or drawer has not sufficient funds in or credit with such bank or depository for the payment of such check, draft, or order, ... shall be guilty ....
Section 11369, RCM (1921) (emphasis added). In Patterson, the defendant obtained title to several horses after providing a postdated check. The attorney general conceded that the conviction could not be sustained because the “gist of the action is the intent to defraud,” and there was a lack of evidence to show such intent. Patterson, 75 Mont. at 317, 243 P. at 355.
¶27 Montana’s current statute does not contain an “intent to defraud” element. Rather, § 45-6-316, MCA, provides in relevant part:
Issuing a bad check. (1) A person commits the offense of issuing a bad check when the person issues or delivers a check or other order upon a real or fictitious depository for the payment of money knowing that it will not be paid by the depository.
(2) If the offender has an account with the depository, failure to make good the check or other order within 5 days after written notice of nonpayment has been received by the issuer is prima facie evidence that the offender knew that it would not be paid by the depository.
Although there was evidence that McWilliams intended to deceive or defraud Johns by obtaining a duplicate title to the trailer to defeat Johns’ security interest in the trailer, that evidence was not required to sustain a conviction for issuing bad checks.
¶28 Similarly, with respect to the check to Curry, the issue was not whether McWilliams defrauded Curry into providing electrical work, rather, the State was obliged to prove only that the check was issued “knowing that it will not be paid by the depository.” Section 45-6-316(1), MCA.
¶29 As to the District Court’s denial of McWilliams’ motion to dismiss the Information filed against him, under § 7-4-2716(1), MCA, county attorneys in Montana are charged with a duty to conduct, on the State’s behalf, all prosecutions for public offenses. In discharging that duty, a county attorney has broad discretion to determine whether to prosecute an offender and what offense to charge. Tichenor, ¶ 26 (citing State ex rel. Fletcher v. Dist. Court, 260 Mont. 410, 414-15, 859 P.2d 992, 995 (1993)).
¶30 An information
is a written accusation of criminal conduct prepared by a prosecutor in the name of the State. The information must reasonably apprise the accused of the charges against him, so that he may have the opportunity to prepare and present his defense. We read the information, and the affidavit in support thereof, as a whole to determine the sufficiency of the charging documents. We apply the “common understanding” rule to determine if the charging language of a document allows a person to understand the charges against him. Under this standard, the test of the sufficiency of a charging document is whether the defendant is apprised of the charges and whether he will be surprised.
State v. Wilson, 2007 MT 327, ¶ 25, 340 Mont. 191, ¶ 25, 172 P.3d 1264, ¶ 25 (internal citations and quotation marks omitted).
¶31 This Court has held that “[l]eave to file an information shall be granted when probable cause exists that an offense has been committed by an identified suspect” and that “[d]istrict court judges should use their common sense when reviewing affidavits of probable cause.” State v. David, 266 Mont. 365, 367-68, 880 P.2d 1308, 1310 (1994) (citing § 46-11-201, MCA; State v. Thompson, 243 Mont. 28, 30, 792 P.2d 1103, 1105 (1990)). Thus, “[t]he determination of whether a motion to file an information is supported by probable cause is left to the sound discretion of the trial court.” State v. Dunfee, 2005 MT 147, ¶ 31, 327 Mont. 335, ¶ 31, 114 P.3d 217, ¶ 31.
¶32 In the case sub judice, the District Court had already granted the State’s motion for leave to file an Information against McWilliams, thus establishing that the State had probable cause to bring the charges. The State had no further burden of proof with regard to these charges until trial. Tichenor, ¶ 22 (citing State v. Nichols, 1998 MT 271, ¶ 4, 291 Mont. 367, ¶ 4, 970 P.2d 79, ¶ 4 (“holding that the defendant’s challenge to the evidence through a pretrial motion to dismiss ‘was premature because such a challenge can only be made after the State has had an opportunity to present its evidence to the trier of fact’ ”)).
¶33 Accordingly, we hold that the District Court did not err in denying McWilliams’ pretrial motion to dismiss the Information charging him with issuing bad checks.
Issue 2.
¶34 Whether the District Court erred in denying McWilliams’ motion for a directed verdict at the close of the State’s case-in-chief.
¶35 McWilliams’ counsel moved for dismissal of the charges against McWilliams at the close of the State’s case-in-chief. The District Court corrected counsel calling it a motion for a directed verdict and then denied the motion without comment.
¶36 Many Montana cases refer to a motion to dismiss for insufficient evidence as a “motion for a directed verdict” or a “motion for a directed verdict of acquittal.” However denominated, these motions have a common denominator-i.e., that the prosecution has failed as a matter of law to prove the charges beyond a reasonable doubt; that the prosecution’s evidence is insufficient as a matter of law. That said, there is no statutory authority for referring to a motion to dismiss for insufficient evidence as a “motion for a directed verdict” or a “motion for a directed verdict of acquittal.” Section 46-16-403, MCA, provides:
Evidence insufficient to go to jury. When, at the close of the prosecution’s evidence or at the close of all the evidence, the evidence is insufficient to support a finding or verdict of guilty, the court may, on its own motion or on the motion of the defendant, dismiss the action and discharge the defendant. [Emphasis added.]
Accordingly, we will deem McWilliams’ motion as a motion to dismiss for insufficient evidence made pursuant to § 46-16-403, MCA, and we will apply the same standard of review that we use in evaluating what have previously been denominated as “motions for a directed verdict of acquittal.”
¶37 The proper standard of review for the denial of a motion to dismiss for insufficient evidence (heretofore a “motion for a directed verdict of acquittal”) is de novo. State v. Skinner, 2007 MT 175, ¶ 14, 338 Mont. 197, ¶ 14, 163 P.3d 399, ¶ 14 (citing State v. Swann, 2007 MT 126, ¶ 19, 337 Mont. 326, ¶ 19, 160 P.3d 511, ¶ 19). Furthermore, determinations of the credibility and weight of 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. Borsberry, 2006 MT 126, ¶ 20, 332 Mont. 271, ¶ 20, 136 P.3d 993, ¶ 20 (citing State v. Shields, 2005 MT 249, ¶ 19, 328 Mont. 509, ¶ 19, 122 P.3d 421, ¶ 19).
¶38 As noted above, a person commits the offense of issuing a bad check if he “issues or delivers a check or other order upon a real ... depository for the payment of money knowing that it will not be paid by the depository.” Section 45-6-316, MCA. The State’s evidence showed that McWilliams issued checks to Johns and Curry upon a real depository. Both Johns and Curry testified in the State’s case-in-chief that they accepted checks from McWilliams and that those checks were not honored by McWilliams’ bank because, in one case, there were insufficient funds in McWilliams’ account, and, in the other case, because McWilliams had stopped payment on the check. Indeed, Curry testified that McWilliams told him that there were not sufficient funds in McWilliams’ account to cover the check at the time it was issued and Johns testified that payment was stopped on his check. Viewing this evidence in a light most favorable to the prosecution as we are constrained to do, there was sufficient evidence upon which a rational trier of fact could find the essential elements of the crime of issuing bad checks beyond a reasonable doubt. Skinner, ¶ 14; Swann, ¶ 16.
¶39 Accordingly, we hold that the District Court did not err in denying McWilliams’ motion to dismiss for insufficient evidence (“motion for a directed verdict of acquittal”) at the close of the State’s case-in-chief.
Issue 3.
¶40 Whether the District Court erred in denying McWilliams’ motion for judgment notwithstanding the verdict or, in the alternative, for a new trial.
¶41 This Court has stated on numerous occasions that Montana’s statutes governing criminal procedure do not provide for judgment notwithstanding the verdict. State v. Bell, 277 Mont. 482, 485, 923 P.2d 524, 526 (1996), cert. denied, 519 U.S. 1098, 117 S. Ct. 781 (1997) (citing State v. Mummey, 264 Mont. 272, 276, 871 P.2d 868, 870 (1994)). Instead, § 46-16-702, MCA, permits a defendant to move for a new trial following a verdict of guilty and permits the district court to modify or change the verdict by finding the defendant guilty of a lesser included offense or finding the defendant not guilty. Bell, 277 Mont. at 485, 923 P.2d at 526. We held in both Bell and Mummey, that the defendants’ motions for judgment notwithstanding the verdict would be deemed motions for a new trial made under § 46-16-702, MCA. Bell, 277 Mont. at 485, 923 P.2d at 526; Mummey, 264 Mont. at 276, 871 P.2d at 870. Similarly, we deem McWilliams’ motion for judgment notwithstanding the verdict as a motion for a new trial.
¶42 A decision to grant or deny a motion for a new trial lies within the sound discretion of the district court and we will not disturb that decision on appeal unless the appellant demonstrates that the district court abused its discretion. State v. Grace, 2001 MT 22, ¶ 23, 304 Mont. 144, ¶ 23, 18 P.3d 1008, ¶ 23 (citing State v. Clay, 1998 MT 244, ¶ 13, 291 Mont. 147, ¶ 13, 967 P.2d 370, ¶ 13)).
¶43 McWilliams argues that the prosecutor, in his closing arguments, made several assertions concerning Montana law that were inaccurate, and the jury relied upon those assertions in convicting McWilliams. These “inaccuracies” as delineated by McWilliams include: (1) commenting that “if it walks like a duck and quacks like a duck, it means it’s usually a duck” (referring to whether the checks written to Johns and Curry met the definition of a check); (2) arguing that McWilliams had a duty to perform an act (reissuing the checks) that would have constituted the very crime with which he was charged; and (3) arguing that the act constituting the offense can be separated in time from the requisite state of mind for the offense.
¶44 McWilliams’ counsel did not object to these statements at the time they were made, but instead, filed a motion for a new trial claiming that the jury misapplied the facts to the law “because the State’s arguments told the jury that the law was something other than it is.” The State argues on appeal that because McWilliams’ trial counsel failed to contemporaneously object during the prosecution’s closing argument, the objection was waived and we should not consider the issue on appeal.
¶45 To be timely, an objection must be made as soon as the grounds for the objection become apparent. Grace, ¶ 35 (wherein this Court affirmed the district court’s denial of a motion for a new trial) (citing State v. Whitlow, 285 Mont. 430, 442, 949 P.2d 239, 247 (1997)); see also State v. Misner, 2007 MT 235, ¶ 24, 339 Mont. 176, ¶ 24, 168 P.3d 679, ¶ 24 (Because the defendant made no objection to the prosecutor’s remarks when they were made, but instead objected for the first time in a motion for a new trial, we concluded that the defendant waived his claim of prosecutorial misconduct, and we held that the district court did not abuse its discretion in denying the motion for a new trial.); State v. Paoni, 2006 MT 26, ¶ 16, 331 Mont. 86, ¶ 16, 128 P.3d 1040, ¶ 16 (“A defendant waives an objection and may not seek appellate review when a defendant fails to make a contemporaneous objection to an alleged error in the trial court.”).
¶46 McWilliams argues on appeal that under § 46-16-702, MCA, he had 30 days following the trial “to bring forward arguments that there were either procedural improprieties at trial, or improper statements on the part of the prosecution, or any other irregularities ....” However, the problem here is not with the timeliness of McWilliams’ motion for a new trial, but with the timeliness of his objections to the prosecutor’s statements.
¶47 Because McWilliams’ trial counsel failed to contemporaneously object during the prosecution’s closing argument, the objection was waived and we will not consider this issue any further.
Issue 4.
¶48 Whether the District Court erred in sentencing McWilliams to pay restitution of sums that had been discharged by his bankruptcy proceeding.
¶49 The District Court ordered McWilliams to pay restitution to Johns and Curry in the amount of the bad checks that McWilliams had written to them. McWilliams argues on appeal that he cannot be ordered to pay restitution to Johns and Curry because those debts were discharged in his bankruptcy proceeding. He maintains that although the automatic stay provisions of the Bankruptcy Code do not apply to a criminal action or proceeding against a debtor, “[a]n action calculated to collect on a dischargeable debt is distinguishable from a criminal prosecution.” He further maintains that since relief from the automatic stay was not requested by any of his creditors following the conversion of his bankruptcy, the criminal prosecution should not be used as a vehicle to collect sums that were discharged in that proceeding. McWilliams contends that the criminal prosecution was a subterfuge for the collection of the discharged debts.
¶50 McWilliams had been operating his business as a sole proprietorship under a confirmed plan of reorganization pursuant to 11 U.S.C. § 1325, since 1997. He converted this Chapter 13 bankruptcy to a Chapter 7 on January 24, 2002. McWilliams contends that at the time he converted to Chapter 7, the debts he and his wife incurred to that point, including the amounts owed to Johns and Curry, were added to the debtors’ creditor list and those creditors were duly notified of the applicability of the stay. McWilliams further contends that Johns and Curry failed to petition for relief from the automatic stay prior to bringing their complaints to the Park County Attorney and the Park County Attorney brought criminal charges against McWilliams in an attempt to collect on debts that had already been discharged in the bankruptcy proceedings.
¶51 Under 11 U.S.C. § 362(a), the commencement of a proceeding under the Bankruptcy Code stays all judicial proceedings against a debtor which could have been brought before the commencement of the case, except in those cases specifically enumerated in 11 U.S.C. § 362(b). In re Hartung, 258 B.R. 210, 213 (Bankr. D. Mont. 2000) (citing In re Tucson Estates, Inc., 912 F.2d 1162, 1166 (9th Cir. 1990)). The automatic stay “is designed to effect an immediate freeze of the status quo by precluding and nullifying post-petition actions, judicial or nonjudicial, in nonbankruptcy fora against the debtor ....” Hartung, 258 B.R. at 213 (quoting Hillis Motors, Inc. v. Hawaii Auto Dealers’ Ass’n, 997 F.2d 581, 585 (9th Cir. 1993)).
¶52 Moreover, the automatic stay is self-executing and is effective upon the filing of the bankruptcy petition. In re Gruntz, 202 F.3d 1074, 1081 (9th Cir. 2000) (citing 11 U.S.C. § 362(a); In re Minoco Group of Companies, LTD, 799 F.2d 517, 520 (9th Cir. 1986)).
The automatic stay gives the bankruptcy court an opportunity to harmonize the interests of both debtor and creditors while preserving the debtor’s assets for repayment and reorganization of his or her obligations. By halting all collection efforts the stay affords the debtor time to propose a reorganization plan, or simply to be relieved of the financial pressures that drove him into bankruptcy. The automatic stay also assures creditors that the debtor’s other creditors are not racing to various courthouses to pursue independent remedies to drain the debtor’s assets.
Gruntz, 202 F.3d at 1081 (internal citations and quotation marks omitted).
¶53 Nevertheless, in Gruntz, the Ninth Circuit Court of Appeals pointed out that although the automatic stay is extremely broad, there are a number of statutory exceptions. Gruntz, 202 F.3d at 1084. One such exception provides that the filing of a petition under the Bankruptcy Code “does not operate as a stay... of the commencement or continuation of a criminal action or proceeding against the debtor.” Gruntz, 202 F.3d at 1085 (citing 11 U.S.C. § 362(b)(1)). Moreover, the Ninth Circuit held in Gruntz that the automatic stay does not apply to criminal proceedings even if the debtor asserts that the underlying purpose of the criminal proceedings is simple debt collection. Gruntz, 202 F.3d at 1087.
[A]ny criminal prosecution of the debtor is on behalf of all the citizens of the state, not on behalf of the creditor. Once the state has made an independent decision to file criminal charges, the prosecution belongs to the government, not to the complaining witness. We cannot, and should not, require a prosecutor to conduct a searching inquiry into the public spirit of the victim of a crime before proceeding with what appears to be an otherwise valid criminal prosecution. In our system, so long as the prosecutor has probable cause to believe that the accused committed an offense defined by statute, the decision whether or not to prosecute, and what charge to file or bring before a grand jury, generally rests entirely in his discretion.
Gruntz, 202 F.3d at 1086 (internal citations and quotation marks omitted).
¶54 In the case before us on appeal, the State points out, and we agree, that writing bad checks is a criminal offense and the action brought by the County Attorney was a criminal prosecution within the meaning of 11 U.S.C. § 362(b)(1), and is, as the Ninth Circuit held in Gruntz, an exception to the automatic stay.
¶55 McWilliams argues that Gruntz is not applicable to this case because the reason the Ninth Circuit took the action it did in Gruntz was because the criminal proceeding in Gruntz dealt with nonpayment of child support, which is not a dischargeable debt in bankruptcy. However, the Ninth Circuit did not limit its holding in Gruntz to only child support proceedings. On the contrary, it specifically stated that the automatic stay does not apply to criminal proceedings. Gruntz, 202 F.3d at 1087. Furthermore, the United States Bankruptcy Court for the District of Montana, relying on the Ninth Circuit’s holding in Gruntz, came to the same conclusion in another case involving the issuance of a bad check. Hartung, 258 B.R. at 215.
¶56 McWilliams cites numerous cases in support of his theory that courts must look at whether the intent of the criminal prosecution is to vindicate the public good or to collect a debt. However, all of the cases McWilliams cites for this proposition predate the Ninth Circuit’s determination in Gruntz that the automatic stay does not apply to criminal proceedings even if the debtor asserts that the underlying purpose of the criminal proceedings is simple debt collection. Gruntz, 202 F.3d at 1087.
¶57 McWilliams failed to mention in his brief on appeal that he had already applied to the United States Bankruptcy Court for the District of Montana for a temporary restraining order under F. R. Civ. P. 65 and a preliminary injunction under 11 U.S.C. § 105(a) to enjoin the State “from taking any steps in furtherance of criminal prosecution” against him. McWilliams v. DePuy, et al., Case No. 97-21378-7 (Bankr. D.Mont. 2004). The Bankruptcy Court dismissed the proceeding based on the holdings in Gruntz and Hartung, and the exception from the automatic stay in 11 U.S.C. § 362(b)(1). In so doing, the Bankruptcy Court noted that “the only fair reading of the Bankruptcy Code is that Congress did not intend the § 362(a) stay to enjoin all state criminal proceedings automatically. ‘The bankruptcy courts were not created as a haven for criminals.’ ” McWilliams, p.4 (quoting Gruntz, 202 F.3d at 1087; Barnette v. Evans, 673 F.2d 1250, 1251 (11th Cir. 1982); Hartung, 258 B.R. at 215).
¶58 Accordingly, we hold that the District Court did not err in ordering McWilliams to pay restitution to Johns and Curry.
¶59 Affirmed.
JUSTICES WARNER, COTTER and RICE concur.
We urge the Bench and Bar to refer to such motions in future cases by their correct name-i.e., “motions to dismiss for insufficient evidence.”
We review McWilliams’ motion for a new trial in this case for abuse of discretion because he bases his motion on prosecutorial misconduct. We observe, however, that § 46-16-702, MCA, also authorizes the trial court to find the defendant guilty of a lesser included offense or find him not guilty based on “the weight of the evidence.” Section 46-16-702(3)(c), MCA. Where a motion for a new trial under § 46-16-702, MCA, is based on sufficiency of the evidence, we review the grant or denial of that motion de novo. State v. Ariegwe, 2007 MT 204, ¶ 164, 338 Mont. 442, ¶ 164, 16 P.3d 815, ¶ 164 (citing Giambra v. Kelsey, 2007 MT 158, ¶¶ 24-27, 338 Mont. 19, ¶¶ 24-27, 162 P.3d 134, ¶¶ 24-27).
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Appellant Jesse A. Cole, M.D., appeals the issuance of an injunction in the Second Judicial District, Silver Bow County. We affirm in part, reverse in part, and remand for further proceedings consistent with this Opinion.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 Dr. Cole is a licensed physician in the State of Montana who practices radiology in Butte, Montana. He was the head of radiology at St. James Healthcare (St. James) beginning in 1999, and had an exclusive contract with St. James to provide radiology services there. In January 2005 St. James terminated this exclusive contract. St. James stated it took this action because it had received a number of complaints about Dr. Cole’s billing practices, alleging that he had been billing patients in excess of the allowances provided for by Blue Cross/Blue Shield. This practice was problematic for St. James because it wished to expand its radiology services and employ physicians who would accept and work with Blue Cross/Blue Shield. However, in spite of the termination of his exclusive contract, Dr. Cole continued to provide the vast majority of radiology services for St. James.
¶3 By October 2006 St. James was in negotiations with Dr. Anna Chacko, a radiologist and vice chair of Radiology at Boston University Medical Center in Boston, Massachusetts, to provide radiology services for St. James. Dr. Chacko was negotiating with James Kiser, the CEO of St. James, and Scott Steinfelt of Southwest Montana Radiology (SWMR) to expand radiology services provided at St. James under the aegis of Boston University. Dr. Chacko was to serve as a contact person among St. James, SWMR and Boston University in developing this relationship.
¶4 In late October 2006 Dr. Chacko visited Butte to negotiate directly with St. James. When she returned to Boston University she discovered that Dr. Cole had left her an email message, dated October 23, 2006, in which he requested the opportunity to speak with her. Prior to this email, Dr. Chacko had never had any contact with Dr. Cole. This email read, in part, as follows:
Dear Dr. Chacko,
My name is Jesse Cole. I am one of the radiologists who is currently practicing at St. James Healthcare in Butte.
The reason I am writing you is because I would like to speak with you, preferably in person before you leave Butte. I think there are some things you should know about this situation....
This situation is fairly difficult, and I will tell you that essentially this is a predatory situation and I know from speaking to other people who have come through here that they have not had things fully explained. Don’t think I am dissuading your [sic] from coming here or trying to interfere with your business relationships in any way by writing this to you.
Thanks, I look forward to hearing from you soon.
Sincerely,
Jesse Cole
¶5 After receiving this email, Dr. Chacko contacted James Kiser for his approval to speak with Dr. Cole. Dr. Chacko called Dr. Cole after receiving this permission. At the beginning of this call, Dr. Cole informed Dr. Chacko that the call had to be teleconferenced with other some other doctors who practice radiology at St. James. Dr. Chacko insisted that she have her lawyer present if other parties were on the line. According to Dr. Chacko, Dr. Cole’s voice and manner changed irrationally at that point and he became very angry and “he seemed to be sputtering with rage.” Dr. Cole then informed Dr. Chacko that he would be calling, among others, the chairman of her department, the dean of the medical school, the American College of Graduate Medical Education, the American Board of Radiology, and the American College of Radiology.
¶6 According to Dr. Chacko, Dr. Cole then told her that ‘Toad things can happen to you.” Dr. Chacko informed Dr. Cole that their conversation was over and hung up the phone. After this interaction, Dr. Chacko became concerned for her physical safety. She later testified that she interpreted Dr. Cole’s comments as a direct threat to her physical safety. After the call, Dr. Chacko contacted Mr. Kiser and asked him to do something about this situation, stating that she was concerned for her safety. She further informed St. James that if it did not address her concerns, neither she nor Boston University Medical School would be willing to work with St. James.
¶7 Meanwhile, Dr. Cole contacted the dean of the Boston University Medical School, Dr. Karen Antman, and Dr. Chacko’s immediate supervisor, Dr. Alex Norbash, chair of the Board of the Department of Radiology at Boston University, as well as other employees of Boston University. In an email addressed to Dr. Antman, for instance, Dr. Cole stated that he was preparing to send a letter to United States Senator Max Baucus and other governmental agencies regarding the legality of “federally funded residency/fellowship teaching programs and the ramifications of their participation in private medical practice groups with regards to federal funding, etc.” Another email sent to Dr. Antman referred to “some problems out here in Butte” that she and Dr. Norbash “may not be aware of,” and offered to send Dr. Antman “some information which is confidential, as it comes from our hospital radiology department director ... and I would not want to get her in trouble.” This email concluded with the following:
Please call me at your earliest convenience or email me so we can set up a time to just talk. I have to say, as a radiologist I have seen the dark underbelly of practice and the lengths to which hospital administrators will sink to get power over physicians, and I have been through this once before here with another administrator and a rather unscrupulous radiology contract company. But I never thought I would see teaching programs in radiology getting involved in such a situation such as this without full disclosure and it greatly bothers me that your Dr. Norbash and Dr. Chacko would not have the courtesy to meet with the local radiologists.
¶8 In light of Dr. Cole’s unwelcomed interference in these negotiations and his previous statements to Dr. Chacko, Dr. Chacko informed St. James that Boston University would be unwilling to go forward in negotiations with St. James unless some action was taken with respect to Dr. Cole. Dr. Chacko stated she had been involved in meetings with the executive vice president and senior administrator at Boston University, and that during those meetings concerns were expressed about what Dr. Cole might do next. Moreover, Dr. Chacko testified that she was concerned about Dr. Cole’s continuing communications from a professional standpoint and opined that Boston University might conclude that the deal was too problematic, leaving Dr. Chacko without the aegis of the University.
¶9 In response to these concerns, the St. James Board of Trustees sought a restraining order against Dr. Cole enjoining him from engaging in threatening or harassing conduct towards Dr. Chacko and members of Boston University. The District Court granted a temporary restraining order against Dr. Cole on November 6,2006. In that order, the District Court ordered Dr. Cole to appear at a subsequent hearing in order to show cause why the order should not be made permanent. A hearing was held on November 17, 2006, at which time the District Court extended the temporary restraining order until a further ruling on the matter.
¶10 At the hearing, the District Court learned that the St. James Board of Trustees had received other complaints against Dr. Cole concerning incidents where he had threatened, harassed, or intimidated other radiologists who were employed with St. James or whom the Board had attempted to contact. One incident of prior harassment concerned Dr. Dan Alzheimer of Sheridan Memorial Hospital in Sheridan, Wyoming. In 1995 Dr. Alzheimer built a radiology imaging center in Butte called Silver-Bow Imaging and hired Dr. Cole to work for him. In the course of getting to know Dr. Cole, Dr. Alzheimer had been to his house where Dr. Cole had shown him two 64-gun vaults, one of which was full of weapons. Later, Dr. Alzheimer moved to Sheridan but provided radiology services for St. James on an occasional basis. One evening Dr. Alzheimer received a call from Dr. Cole insisting that he be on call that night. Dr. Alzheimer explained this would be difficult since he lived approximately five hours from Butte. Soon thereafter, Dr. Alzheimer received a call from the staff at Sheridan Memorial Hospital saying that Dr. Cole had just called there demanding to speak with the hospital CEO and nursing staff superintendent at Sheridan Memorial Hospital. Dr. Alzheimer told the staff at Sheridan Memorial to give Dr. Cole those phone numbers so he could contact them.
¶11 Later that evening Dr. Cole called Dr. Alzheimer a second time, but this time Dr. Alzheimer’s 15 year-old son answered the phone. After the conversation, Dr. Alzheimer’s son asked him if he was going to jail based on the conversation he had just had with Dr. Cole. Dr. Alzheimer told the District Court that the call had upset his son and that he had to reassure him he was not going to jail. Around 10:30 p.m. that same evening, Dr. Alzheimer received a call from the CEO of Sheridan Memorial Hospital, after he had spoken with Dr. Cole, asking Dr. Alzheimer what was going on with St. James.
¶12 The weekend after these incidents, Dr. Alzheimer took a call at St. James. He became concerned for his safety after learning from hospital staff that Dr. Cole had told them he would be there to personally greet him. The combination of these events prompted Dr. Alzheimer to fear for his safety to such an extent that he called the police in Butte and asked them to be available immediately if he called for their assistance.
¶13 Subsequent to this weekend Dr. Cole continued to harass Dr. Alzheimer. Dr. Cole purchased false and misleading newspaper and radio ads in the Sheridan newspaper and on local radio stations. The newspaper ad read as follows:
Congratulations, Daniel Alzheimer, M.D.... of Sheridan, Wyoming on your new practice at Southwest Montana Radiology, 820 W. Platinum in Butte, Montana, who will be providing daily personal, on site radiology services beginning March 22nd, 2006. Jessie A. Cole, M.D.
¶14 The radio ad, which falsely stated it was from the Sheridan Memorial Hospital’s Department of Radiology, but was in reality purchased by Dr. Cole, stated:
Congratulations to radiologists Dan Alzheimer and Jason White from Sheridan’s Memorial Hospital’s Department of Radiology. Dr. Alzheimer and White now have a new practice in Butte, Montana. Dr.’s Alzheimer and White will be traveling to Butte every weekday to see patients at Southwest Montana Radiology for all their radiology needs. Again, congratulations to Dr. Dan Alzheimer and Jason White from Sheridan Memorial Hospital’s Department of Radiology on their new practice in Butte, Montana.
¶15 Because of these false ads, Dr. Alzheimer received over fifty calls from patients wanting to know why he was leaving town. Dr. Alzheimer testified before the District Court that he continues to feel intimidation and fear of Dr. Cole when he practices radiology in Butte. Dr. Alzheimer further testified that the temporary restraining order against Dr. Cole made him feel safer when working in Butte and asked the District Court that it remain in place.
¶16 Similarly, another radiologist, Dr. Zurich, had made previous reports to St. James that he had been threatened and intimidated by Dr. Cole and refused to come to Butte to practice radiology as a result of Dr. Cole’s conduct. Additionally, the chairman of the Board of Trustees for St. James also testified that she was personally afraid of Dr. Cole, but that she felt comfortable testifying with the restraining order in place. Similarly, Dr. Chacko testified that with the restraining order in place she felt safe and comfortable enough to return to Butte and continue her negotiations with St. James. Lastly, Dr. Cole admitted to the District Court that he had brought firearms to St. James, leaving them in his pickup or car.
¶17 In light of the evidence before it, the District Court ordered that the injunction against Dr. Cole be made permanent on January 17, 2007. That injunction read as follows:
That Jesse A. Cole, M.D., is enjoined from engaging in any of the following:
(a) Calling, writing, or coming into contact of any kind, with Dr. Chacko, her supervisors, or any member of Boston University, either directly or indirectly;
(b) Threatening any type of professional or physical harm to Dr. Chacko, her supervisors, or any member of Boston University, either directly or indirectly;
(c) Coming within 250 feet of Dr. Chacko;
(d) Indicating to patients, potential patients or physicians, that Dr. Chacko, or the radiology services offered by St. James, are in any manner inadequate or unprofessional, either directly or indirectly;
(e) Calling, writing, or have contact of any kind, with any potential candidate for the radiology department at St. James, that would discourage or intimidate such candidate from negotiating or contracting with St. James, either directly or indirectly; and
(f) Threatening any employee or agent of St. James verbally or physically, either directly or indirectly.
¶18 The District Court found that St. James met its burden under § 27-19-201, MCA, demonstrating that without the injunction in place it would suffer immediate and irreparable damages. Those damages included threats and harassment against others which would result in the loss of a unique business opportunity for St. James and its patients. The District Court further found that St. James had a right to seek such an injunction for persons who visit or work at its facility, and that the “[s]peech that Dr. Cole has engaged in, which is harassing, intimidating, or threatening, is not protected by the Constitution.”
¶19 Dr. Cole now timely appeals the issuance of the injunction by the District Court.
ISSUE
¶20 We state the issue on appeal as follows: Did the District Court manifestly abuse its discretion when it granted St. James a permanent injunction against Dr. Cole?
STANDARD OF REVIEW
¶21 We review the granting or denial of a temporary or permanent injunction under the “manifest abuse of discretion” standard. Shammel v. Canyon Resources Corp., 2003 MT 372, ¶ 12, 319 Mont. 132, ¶ 12, 82 P.3d 912, ¶ 12. “A manifest abuse of discretion is one that is obvious, evident, or unmistakable.” Shammel, ¶ 12 (quotation omitted). Where the issuance of an injunction is based upon conclusions of law, we review those conclusions to determine if they are correct. Benefis Healthcare v. Great Falls Clinic, LLP, 2006 MT 254, ¶ 11, 334 Mont. 86, ¶ 11, 146 P.3d 714, ¶ 11; M. H. v. Mont. High Sch. Assn., 280 Mont. 123, 130, 929 P.2d 239, 243 (1996).
DISCUSSION
¶22 Dr. Cole maintains the District Court committed a manifest abuse of discretion in granting the injunction to St. James. Dr. Cole advances several distinct arguments in support of his position. On the one hand, he maintains the injunction is an unconstitutional prior restraint on his right to free speech under the First Amendment to the U.S. Constitution and Article II, Section 7 of the Montana Constitution. Additionally, Dr. Cole maintains the injunction issued against him is infirm because: (1) the District Court did not have sufficient evidence to justify enjoining him from the conduct and adopted verbatim St. James’ proposed Findings of Fact and Conclusion of Law; (2) St. James did not have standing to seek a protective order for Dr. Chacko, her supervisors, members of Boston University, and the employees, agents, potential candidates, or patients of St James; and (3) injunctive relief was not available to St. James as a matter of law since the alleged harm could have been remedied by money.
¶23 The threshold question in this case is whether the injunction by its very terms amounts to an unconstitutional prior restraint on free speech. After examining this question, we will consider whether the injunction suffers from the additional infirmities as claimed by Dr. Cole.
A. Injunction as an Unconstitutional Prior Restraint of Free Speech
¶24 The District Court concluded that the speech Dr. Cole was enjoined from engaging in was harassing, intimidating, or threatening, and therefore not constitutionally protected. Dr. Cole maintains this was error. In particular, Dr. Cole argues that the District Court failed to properly evaluate whether the terms of the injunction constituted an unconstitutional prior restraint on free speech under Nebraska Press Assn. v. Stuart, 427 U.S. 539, 96 S. Ct. 2791 (1976) and Kuiper v. Dist. Ct. of the Eighth Jud. Dist., 193 Mont. 452, 632 P.2d 694 (1981). Dr. Cole asserts that under Kuiper and Nebraska Press, the District Court was required to adhere to the following test but failed to do so:
Before a trial court can enter a protective order restraining free expression, the court must find that three criteria exist: (1) The harm posed by dissemination must be substantial and serious. (2) The restraining order must be narrowly drawn and be precise. (3) There must be no alternative means of protecting the public interest which intrudes less directly on expression.
In assessing the propriety of a protective order in each case, the trial court must consider and make necessary findings on each element of the standard.
Kuiper, 193 Mont. at 458-59, 632 P.2d at 698 (citing Neb. Press, 427 U.S. 539, 96 S. Ct. 2791; In re Halkin, 598 F.2d 176 (D.C. Cir. 1979)).
¶25 St. James argues that Dr. Cole’s demonstrated course of conduct, combined with his direct threat to Dr. Chacko that “bad things can happen to you,” shows that he was engaging in harassing and intimidating speech not protected by the Constitution. St. James argues its position is supported by, among others, State v. Nye, 283 Mont. 505, 943 P.2d 96 (1997). Moreover, St. James asserts that Dr. Cole’s reliance on Nebraska Press and Kuiper in this case is misplaced.
¶26 The First Amendment to the United States Constitution and Article II, Section 7 of the Montana Constitution both protect the right to free speech. The right to free speech is a fundamental personal right and “essential to the common quest for truth and the vitality of society as a whole.” Bose Corp. v. Consumer Union of United States, Inc., 466 U.S. 485, 503-04, 104 S. Ct. 1949, 1961 (1984). Of all the forms of infringement on the right to free speech prior restraints “are the most serious and least tolerable ....’’Nebraska Press, 427 U.S. at 559, 96 S. Ct. at 2803. In fact, “the elimination of prior restraints on free speech was a ‘leading purpose’ in the adoption of the First Amendment.” Carroll v. Pres. and Commrs. of Princess Anne, 393 U.S. 175, 181 n. 5, 89 S. Ct. 347, 351 n. 5 (1968) (quoting Lovell v. City of Griffin, 303 U.S. 444, 451-452 (1938)). The United States Supreme Court has defined prior restraints as follows:
The term prior restraint is used to describe administrative and judicial orders forbidding certain communications when issued in advance of the time that such communications are to occur. Temporary restraining orders and permanent injunctions-i.e., court orders that actually forbid speech activities-are classic examples of prior restraints.
Alexander v. United States, 509 U.S. 544, 550, 113 S. Ct. 2766, 2771 (1993) (quotation omitted).
¶27 However, not every injunction that amounts to a prior restraint is “impermissible.” Pittsburgh Press Co. v. Pittsburgh Commn. on Human Rel., 413 U.S. 376, 390, 93 S. Ct. 2553, 2561 (1973); Nebraska Press, 427 U.S. at 570, 96 S. Ct. at 2808 (“This Court has frequently denied that First Amendment rights are absolute and has consistently rejected the proposition that a prior restraint can never be employed.”). “An injunction that is narrowly tailored, based upon a continuing course of repetitive speech, and granted only after a final adjudication on the merits that the speech is unprotected does not constitute an unlawful prior restraint.” Auburn Police Union v. Carpenter, 8 F.3d 886, 903 (1st Cir. 1993) (citing Pittsburgh Press Co., 413 U.S. at 390; Securities & Exch. Commn. v. Wall St. Publ. Inst., Inc., 851 F.2d 365, 370 (D.C. Cir. 1988)); accord Balboa Island Village Inn, Inc. v. Lemen, 156 P.3d 339, 347 (Ca. 2007).
¶28 For instance, the United States Supreme Court has stated that it determines the constitutionality of content-neutral injunctions in the First Amendment area by considering whether they “burden no more speech than necessary to serve a significant government interest.” Madsen v. Women’s Health Ctr., Inc., 512 U.S. 753, 765, 114 S. Ct. 2516, 2525 (1994). This is in keeping with the First Amendment’s repugnance to prior restraints and “the general rule, quite apart from First Amendment considerations, that injunctive relief should be no more burdensome to the defendant than necessary to provide complete relief to the plaintiffs.” Madsen, 512 U.S. at 765, 114 S. Ct. at 2525 (quotation omitted). More recently, the Supreme Court has reiterated this view, stating that “a prior restraint should not swee[p] any more broadly than necessary” and that “[a]n order issued in the area of First Amendment rights must be precisely] and narrowly tailored to achieve the pin-pointed objective of the needs of the case.” Tory v. Cochran, 544 U.S. 734, 738, 125 S. Ct. 2108, 2111 (2005) (quotations omitted, first alteration in original).
¶29 It is important to bear in mind that neither the First Amendment nor Article II, Section 7 provide unlimited protection for all forms of speech. Some forms of speech and conduct are not considered constitutionally protected.
“There are certain well-defined and narrowly limited classes of speech, the prevention and punishment of which have never been thought to raise any Constitutional problems. These include the lewd and obscene, the profane, the libelous, and the insulting or ‘fighting’ words-those which by their very utterance inflict injury or tend to incite an immediate breach of the peace. It has been well observed that such utterances are no essential part of any exposition of ideas.” Furthermore, “free speech does not include the right to cause substantial emotional distress by harassment or intimidation.” Activities which are intended to embarrass, annoy or harass ... are not protected by the First Amendment.
Nye, 283 Mont. at 512, 943 P.2d at 101 (quoting State v. Cooney, 271 Mont. 42, 48, 894 P.2d 303, 307 (1995) (other citations omitted)).
¶30 Before turning to an evaluation of the injunction before us, we deem it appropriate to address the applicability of the three-prong test from Kuiper to the instant case. (See ¶ 24). In Kuiper we applied a three-prong test from In re Halkin to determine the whether the terms of a protective order amounted to an unconstitutional prior restraint on free speech. Kuiper, 193 Mont. at 456-59, 632 P.2d at 696-98; In re Halkin, 598 F.2d at 191. While the Kuiper and Halkin approach might still be viable in the discovery context, See Seattle Times Co. v. Rhinehart, 467 U.S. 20, 28-29, 104 S. Ct. 2199, 2205 (1984) (affirming a decision of the Washington State Supreme Court which conflicts with the holding of In re Halkin), there is nonetheless good reason to conclude that this approach should be limited to cases involving the intersection between discovery requests in on-going litigation and the First Amendment. See Seattle Times Co., 467 U.S. at 34, 104 S. Ct. at 2208 (“[0]ur consideration of... protective orders ... takes into account the unique position that such orders occupy in relation to the First Amendment.”). In fact, more recent pronouncements of both the United States Supreme Court, and other courts as well, have not relied upon the In re Halkin three-prong test when considering whether injunctions outside the context of the discovery process amount to unconstitutional prior restraints. Madsen, 512 U.S. at 765, 114 S. Ct. at 2525; Tory, 544 U.S. at 738, 125 S. Ct. at 2111; Auburn Police Union, 8 F.3d at 903; Balboa Island, 156 P.3d at 349.
¶31 Accordingly, rather than apply the three-prong test from Kuiper in this case, we will focus our inquiry on whether the injunction issued against Dr. Cole “sweep[s] any more broadly than necessary” and whether it is “precisely] and narrowly tailored to achieve the pinpointed objective of the needs of the case.” Tory, 544 U.S. at 738, 125 S. Ct. at 2111 (quotations and original alterations omitted).
¶32 After reviewing the terms of the injunction, we conclude that paragraph (d) is overly-broad and must be stricken. By its very terms, it does not prohibit conduct which is embarrassing, annoying or harassing, but enjoins Dr. Cole from “[ijndicating to patients, potential patients or physicians, that Dr. Chacko, or the radiology services offered by St. James, are in any manner inadequate or unprofessional, either directly or indirectly ....” As noted by Amici Drs. Popovich, Sorini, Pullman, Chamberlin & Córtese and Southwest Montana Independent Healthcare Association, LLC, the terms of this injunction could enjoin Dr. Cole from giving professional opinions in the course of providing radiology services. For instance, if Dr. Cole reviewed a radiology report from St. James which he believed contained inaccuracies or errors, he could be enjoined from expressing this opinion because it could be construed as a direct or indirect suggestion that the radiology services provided by St. James were not professional or adequate. As Amici point out, this could put Dr. Cole in a position that is unethical with regard to his duty to provide professional medical services to his patients. Thus, paragraph (d) sweeps too broadly, the District Court erred as a matter of law in issuing it, and it must be stricken.
¶33 Paragraph (e), as currently written, is overbroad as well. It enjoins Dr. Cole from <£[c]alling, writing, or have contact of any kind, with any potential candidate for the radiology department at St. James, that would discourage or intimidate such candidate from negotiating or contracting with St. James, either directly or indirectly ...” As Amici point out, this injunction could prohibit Dr. Cole from giving truthful information concerning his opinion of St. James if a potential candidate were to contact him in order to solicit his views. As such, it could enjoin him from engaging in constitutionally protected free speech.
¶34 However, because portions of paragraph (e) do enjoin Dr. Cole from “intimidating” speech and conduct which is not constitutionally protected (see ¶ 29), this paragraph would be permissible if reformed as follows:
Calling, writing, or having contact of any kind, with any potential candidate for the radiology department at St. James, that would discourage- or intimidate such candidate from negotiating or contracting with St. James, either directly or indirectly ....
¶35 Thus, we conclude that paragraph (e), insofar as it enjoins “discouraging” conversation, is overbroad.
¶36 With respect to paragraph (a), we find that it is constitutionally permissible under the present circumstances and “precis[ely] and narrowly tailored to achieve the pin-pointed objectives of the needs of the case.” Tory, 544 U.S. at 738, 125 S. Ct. at 2111 (quotations and original alteration omitted). However, if St. James does establish a working relationship with Boston University, and Dr. Cole continues to provide radiology services for St. James, it is conceivable that Dr. Cole might need to interact with members of Boston University in the course of providing radiology services. If the “needs of the case” change in this regard, then Dr. Cole could petition the District Court for an appropriate modification of the injunction.
¶37 Lastly, because paragraphs (b), (c), and (f) target only speech and conduct that is intended to embarrass, annoy, harass or threaten, such conduct may be enjoined and does not amount to an unconstitutional prior restraint on free speech. See Balboa Island Village, 156 P.3d at 347 (speech determined to be not constitutionally protected may enjoined); Ansonia Associates Ltd. Partnership v. Ansonia Tenants’ Coalition, Inc., 677 N.Y.S.2d 575, 576 (N.Y. App. Div. 1 1998) (holding that defendants may be enjoined from approaching, accosting, initiating communications with, or disturbing visitors to an apartment complex because such conduct is not constitutionally protected); See also Bihari v. Gross, 119 F. Supp. 2d 309, 327 (S.D.N.Y. 2000) (citing similar examples). Based on the “needs of the case,” these paragraphs are all pin-pointed precisely toward forms of speech and conduct which are not constitutionally protected; thus, these paragraphs may stand.
¶38 Our determination that paragraphs (a), (b), (c) and (f) are constitutional, that paragraph (e) must be reformed, and that paragraph (d) must be stricken, does not end our inquiry because Dr. Cole also argues that the injunction is infirm in aspects unrelated to whether its terms are unconstitutional as a matter of law. Thus, we now evaluate these challenges to the injunction.
B. Sufficiency of the Evidence in Support of the Injunction
¶39 Dr. Cole argues there was insufficient evidence to support the finding that he engaged in threatening and harassing conduct, and that the District Court manifestly abused its discretion in issuing the injunction. Dr. Cole claims that subsections (a), (b), and (c) of the injunction (¶ 17), were based solely on the phone call he allegedly had with Dr. Chacko (¶¶ 5-6), as well as the emails he exchanged with Dr. Chacko and other members of Boston University (¶¶ 4, 7), and that this evidence provided was an insufficient basis upon which to conclude that he was engaging in threatening conduct. Dr. Cole also asserts that with respect to (e), there was no evidence presented showing that he had engaged in the described conduct, other than the emails and phone call with Dr. Chacko. Along these lines, he argues that the situation involving Dr. Alzheimer (¶¶ 10-15) is not relevant because he was never an actual candidate during the time that St. James was interviewing candidates for the exclusive radiology contract. Finally, Dr. Cole maintains that subsection (f) of the injunction is not supported by the evidence because “no one ever testified that Dr. Cole ever threatened any employee or agent of St. James verbally or physically.”
¶40 We disagree with Dr. Cole and conclude that there was ample evidence supporting the finding that he was engaging in the type of harassing and threatening conduct described in the injunction. As an initial matter we note that while Dr. Cole has provided copies of the emails in this case, he has failed to provide us with a copy of the transcript of the injunction hearing on November 17,2006. As a result, we will consider the findings of fact as promulgated by the District Court to be conclusive for purposes of appellate review. Giambra v. Kelsey, 2007 MT 158, ¶ 36, 338 Mont. 19, ¶ 36, 162 P.3d 134, ¶ 36. ¶41 With respect to paragraphs (a), (b), (c), (e) and (f) of the injunction, the District Court had the ominously-worded emails that Dr. Cole sent to Dr. Chacko and members of Boston University, as well as a direct threat which he made to Dr. Chacko on the telephone. (See ¶ 6). The unsolicited email to Dr. Chacko discussed the “things you should know about this situation,” and noted that “essentially this is a predatory situation.” Combined with the direct threat, there was sufficient evidence for the District Court to conclude that Dr. Cole was intimidating, threatening, and harassing Dr. Chacko.
¶42 Similarly, the unsolicited emails to members of Boston University referred to the “dark underbelly of practice,” spoke of the “lengths to which hospital administrators will sink to get power over physicians,” and expressed concerns that Boston University would also become a part of this course of conduct. Bizarrely, Dr. Cole also offered to provide “some information which is confidential, as it comes from our hospital radiology department director ... and I would not want to get her in trouble,” and also threatened to investigate the legality of the Boston University’s participation with St. James and SWMR. Contrary to Dr. Cole’s assertions, these correspondences establish he was engaging in threatening, annoying, or intimidating speech against these individuals and organizations.
¶43 Additionally, the District Court heard testimony from individuals who stated they feared for their personal safety or were intimidated and harassed by Dr. Cole. Testimony from Dr. Alzheimer and Dr. Zurich was relevant because it demonstrated Dr. Cole had engaged in a repeated course of speech and conduct towards other employees and potential candidates for employment with St. James. The District Court determined this testimony was credible, and we have no basis to disturb these credibility findings on appeal. “It is for the trier of fact, and not this Court, to assess the credibility of witnesses and weigh the evidence; we will not second-guess a district court’s determinations regarding the strength and weight of conflicting testimony.” Point Serv. Corp. v. Myers, 2005 MT 322, ¶ 28, 329 Mont. 502, ¶ 28, 125 P.3d 1107, ¶ 28.
¶44 In issuing the injunction on the basis of this evidence the District Court acted reasonably and did not commit a manifest abuse of discretion which is “obvious, evident, or unmistakable.” Shammel, ¶ 12. The fact that the District Court’s findings of fact track closely the proposed findings from St. James does not alter our conclusion that the District Court did not err, based on the record before us.
C. Standing
¶45 Dr. Cole further maintains that paragraphs (b), (c), and (f) of the injunction are in violation of § 27-19-201(5), and Title 40, Chapter 15, MCA, because only St. James applied for the injunction, not the various parties who were protected by the injunction itself. As a result, Dr. Cole argues that neither Dr. Chacko, her supervisors, members of Boston University, nor the employees or agents of St. James were eligible for the type of injunctive relief provided by the District Court. We disagree.
¶46 Section 27-19-201, MCA, establishes the conditions under which an injunction may be granted. This statute reads as follows:
27-19-201. When preliminary injunction may be granted.
An injunction order may be granted in the following cases:
(1) when it appears that the applicant is entitled to the relief demanded and the relief or any part of the relief consists in restraining the commission or continuance of the act complained of, either for a limited period or perpetually;
(2) when it appears that the commission or continuance of some act dining the litigation would produce a great or irreparable injury to the applicant;
(3) when it appears during the litigation that the adverse party is doing or threatens or is about to do or is procuring or suffering to be done some act in violation of the applicant’s rights, respecting the subject of the action, and tending to render the judgment ineffectual;
(4) when it appears that the adverse party, during the pendency of the action, threatens or is about to remove or to dispose of the adverse party’s property with intent to defraud the applicant, an injunction order may be granted to restrain the removal or disposition;
(5) when it appears that the applicant has applied for an order under the provisions of 40-4-121 or an order of protection under Title 40, chapter 15.
¶47 The subsections of this statute are disjunctive “ ‘meaning that findings that satisfy one subsection are sufficient.’ Consequently, only one subsection need be met for an injunction to issue.” Sweet Grass Farms, Ltd. v. Bd. of Co. Commrs. of Sweet Grass Co., 2000 MT 147, ¶ 27, 300 Mont. 66, ¶ 27, 2 P.3d 825, ¶ 27 (quoting Stark v. Borner, 226 Mont. 356, 359, 735 P.2d 314, 317 (1987)).
¶48 Dr. Cole’s argument mistakenly assumes that subsection (5) applies in this case. However, subsection (5), which references Title 40, Chapter 15, applies only to injunctions issued for the protection of victims of Partner and Family Member Assault, Sexual Assault and Stalking. This case, as St. James correctly points out, falls under subsections (1) and (2).
¶49 Here, the District Court found that without an injunction enjoining Dr. Cole from engaging in specified harassing and threatening speech and conduct towards individuals and organizations upon whom St. James relies for its continued success, St. James would suffer immediate and irreparable harm. The District Court further found that St. James had no other adequate remedy to protect itself, staff, employees, visitors, patients, and potential candidates for the radiology department, other than seeking an injunction. On the record before us, we conclude that St. James had standing to seek an injunction which would restrain Dr. Cole from engaging in harassing and intimidating conduct with respect to third parties with whom St. James engages in business, provides services, or retains in its employment. Additionally, we note that other courts have upheld the validity of these types of injunctions in similar contexts. See ¶ 37.
D. Availability of Injunctive Relief
¶50 Lastly, we address Dr. Cole’s assertion that injunctive relief is not available in this case because when “harm can be remedied with an award of money it is not considered irreparable harm, and injunctive relief is not appropriate ....” Dr. Cole maintains that St. James’ “exclusive remedy” for the alleged interference in this case is money damages, and that our holding Van Loan v. Van Loan, 271 Mont. 176, 895 P.2d 614 (1995) supports his position that an injunction is an inappropriate remedy.
¶51 St. James counters this argument by noting that if the negotiations between St. James and Boston University were to break down due to Dr. Cole’s interference, an award of money would not be able to replace “the loss of this unique medical opportunity,” or the lack of candidates that would be willing to negotiate with St. James, thus leading to a decrease in the quality of care for St. James’ patients. St. James also notes that the District Court issued the injunction in part because of the threatening and harassing conduct directed at individuals such as Dr. Chacko, members of Boston University, and St. James’ employees, and that monetary damages alone could not adequately compensate for these injuries. Additionally, St. James maintains that under Rice v. C.I. Lanning, 2004 MT 237, 322 Mont. 487, 97 P.3d 580, Montana law does not prohibit money damages and an injunction in the same case, and that Van Loan does not bar the issuance of the injunction against Dr. Cole.
¶52 We agree with the District Court that injunctive relief was an available remedy to St. James in this case. In the first instance, St. James correctly notes that “Montana law does not prohibit awarding money damages and an injunction in the same case.” Rice, ¶ 29. In Rice, for instance, we upheld both the issuance of an injunction and money damages, noting that the money damages were appropriate to compensate for a diminution in property value resulting from a defendant’s conduct, while an injunction was appropriate to prevent the defendant from continuing a commercial operation which was prohibited under the restrictive covenants of a subdivision. Rice, ¶¶ 29-30. Whether or not money damages are also appropriate in this case in no way affects the propriety of the injunction itself. Thus, we conclude that injunctive relief was an appropriate remedy in this case.
CONCLUSION
¶53 We conclude that the District Court erred as a matter of law in issuing paragraph (d) of the injunction, and that it must be stricken as an unconstitutional prior restraint on Dr. Cole’s right to free speech. Similarly, we conclude that paragraph (e) of the injunction must be reformed in the manner described in ¶ 34 in order to be constitutionally permissible. With respect to paragraphs (a), (b), (c), (f), and the reformed version of paragraph (e), we conclude that there was sufficient evidence to support the injunction, St. James had standing to pursue it on behalf of Dr. Chacko, Boston University, its patients, employees, agents, and potential candidates at the radiology department, and that injunctive relief was an appropriate remedy in this case.
¶54 Accordingly, the District Court did not manifestly abuse its discretion in issuing paragraphs (a), (b), (c) and (f) of the injunction. However, we conclude the District Court did manifestly abuse its discretion in issuing paragraph (d) and a portion of paragraph (e), and thus remand this case for further proceedings consistent with this Opinion.
JUSTICES NELSON, MORRIS, LEAPHART and WARNER concur.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Plaintiff Richard Vettel-Becker (Vettel-Becker) appeals the District Court’s entry of summary judgment in favor of the defendant Deaconess Medical Center of Billings, Inc., doing business as Deaconess Billings Clinic (Deaconess). Deaconess cross-appeals the denial of its motion requesting attorney’s fees. We reverse and remand.
¶2 After he was terminated from his employment with Deaconess, Vettel-Becker filed a claim before the Montana Human Rights Bureau (HRB) alleging discrimination in employment. He also filed in District Court a claim of wrongful discharge from employment under the Wrongful Discharge from Employment Act (WDEA), §§ 39-2-901 through 915, MCA (2005). Later, after the Department of Labor dismissed his discrimination charge, he added a claim in his District Court case for employment discrimination under the Montana Human Right Act (MHRA), Title 49, Chapter 2, MCA, and for blacklisting under § 39-2-802, MCA. The District Court entered summary judgment in favor of Deaconess on all counts. Vettel-Becker does not appeal the District Court’s determination that he failed to demonstrate a prima facie case of discrimination, nor does he appeal the dismissal of his blacklisting claim. However, he argues that summary judgment on the WDEA claim was improper because his WDEA claim relies on facts distinct from his MHRA claim. He asserts that these facts raise a genuine issue about whether Deaconess had good cause to terminate him, precluding summary judgment.
ISSUES
¶3 We restate Vettel-Becker’s issues on appeal as follows:
¶4 (1) Did the District Court correctly conclude that his filing a MHRA claim precluded Vettel-Becker’s subsequent pursuit of a claim under the WDEA?
¶5 (2) Did the District Court correctly conclude that Deaconess was entitled to summary judgment as a matter of law on the WDEA claim? ¶6 Deaconess raises one issue on cross-appeal:
¶7 (3) Did the District Court err in denying Deaconess its attorney’s fees?
FACTUAL AND PROCEDURAL BACKGROUND
¶8 After fifteen years of providing pastoral and management services to Deaconess, Vettel-Becker was terminated from employment for not being a “good fit” and for receiving “mixed reviews” on an evaluation.
¶9 Vettel-Becker started working as a chaplain for Deaconess on August 1, 1986. He was soon promoted to manager of the Pastoral Care Department (PCD) on June 28, 1987. His responsibilities included supervising the PCD staff, including other chaplains and an administrative assistant, and providing pastoral care to patients. He was also appointed to oversee the Healing Environment Program (HEP), a committee dedicated to making Deaconess a more welcoming and comforting place through art, music, animals, etc. During his first ten years at Deaconess, he and a physician started and participated on a medical ethics committee that continues to serve Deaconess today. He was also an integral part in starting the Continuing Pastoral Education Program. His employment record reveals no problems with his job performance from 1986 to 1999.
¶10 Vettel-Becker reported to Dr. Nick Wolter, CEO of Deaconess, from 1997 until 2000 when Carlene Lewies, now known as Carlene Crall (Crall), a human resources supervisor, was assigned to oversee the PCD.
¶11 In 1998, Vettel-Becker separated from his wife, and in 1999, they divorced. Vettel-Becker remarried in June 2000. Upon remarriage, he hyphenated his name to reflect his new wife’s name and his.
¶12 Perhaps coincidentally, around the same time as his divorce and after nearly thirteen years of managing the PCD without complaint, Vettel-Becker’s job performance began to come under scrutiny in 1999. Dr. Wolter received reports that the PCD was lacking morale. A former chaplain, Karl Guhn, made complaints about Vettel-Becker to Crall, and Chuck Heath, a chaplain, resigned from the department and complained about Vettel-Becker in his resignation letter. Notably, these complaints were not the proffered reason for Vettel-Becker’s later discharge, but they did result in Wolter asking Vettel-Becker to meet one-on-one with Terry Radcliffe, a management consultant, who had been hired by Deaconess to oversee the recent merger and run workshops to improve management.
¶13 Radcliffe and Vettel-Becker met several times in 1999 and 2000, and the results of these meetings were positive. Vettel-Becker completed a critical self-evaluation, received feedback about his leadership style, and strove to improve the morale of the PCD. He reduced his involvement in the HEP to spend more time in the PCD, and he organized a retreat for his department.
¶14 In July 2000 other members of the Deaconess staff evaluated Vettel-Becker’s work performance. The results of this so-called “360” evaluation were mixed. Although Radcliffe observed improvements in Vettel-Becker one-on-one, Crall advised Vettel-Becker to continue meeting with Radcliffe. When Crall became his supervisor in October 2000, she assured Vettel-Becker that he was getting a clean slate and that he was not being terminated.
¶15 Crall noted in her July 2001 evaluation of Vettel-Becker that his efforts at changing appeared to be helping the department. Giving Vettel-Becker an overall rating of 3.5, Crall wrote in her overall comments:
You have shown a desire to continue to improve as a leader of Pastoral Care. Your continued dedication to the Healing Environment but balancing that with your department responsibilities has been positive. Stepping down from chairing the Healing Environment has been helpful for you.
Our working relationship seems to be effective, the access to me seems to have made you more comfortable in dealing with issues.
I would like you to continue to work with Terry Radcliffe on development of the Pastoral Care team over this next year. I look forward to observing continued growth in your position.
¶16 On October 17,2001, Radcliffe sent Crall a report on his progress with Vettel-Becker. Radcliffe had both praise and criticism to offer. On the one hand, he complained of Vettel-Becker’s tendency to be defensive and his excessive concern about past events. He also opined that Vettel-Becker did not know Deaconess’ “[v]alues” or “[c]ore [cjompetencies.” On the positive side, he found Vettel-Becker unfailingly respectful, adaptable, and willing to carry on with a difficult evaluation process.
¶17 In November 2001 Vettel-Becker became concerned about several confusing, offensive, and questionable comments Radcliffe made to him during their meetings. For instance, Radcliffe told Vettel-Becker that his public recognition of employees was inappropriate and seen as an attempt to bring attention to himself. He also told Vettel-Becker that his hyphenated name “pisses” him off and that other people at Deaconess felt the same. As a result of this concern, Vettel-Becker sent Crall a memo on November 15 asking that Crall tell Radcliffe to refrain from making such comments and that they discuss any confusion or concerns surrounding his name change at their next meeting.
¶18 On November 21, 2001, Crall received an update from Radcliffe (Addendum) about his work with Vettel-Becker. Radcliffe’s Addendum was considerably less complimentary ofVettel-Becker than his October 17 report had been. He admitted to telling Vettel-Becker that his name pissed him off, and “that it was possible I was not the only one who considered this inappropriate behavior.” Among other things, Radcliffe said that Vettel-Becker may not be living up to the societal expectations of his role as manager of Pastoral Care at Deaconess. By the tone of his memo, it was evident that Radcliffe was offended by the fact that Vettel-Becker had complained to Crall about him. Radcliffe wrote to Crall:
How much time should you give him from this date? Depends upon how much more you can stand. My recommendation: End of January unless he exhibits strong indications of changing. If he does show contriteness, apologizes, seeks reconciliation, gives some of the money back to the store, offers me some direct communication about what he said about me, indicates to you that he has been off base in his behavior, actually changes his high “I” behavior, then I would stretch the time a bit.
He also wrote “[t]he other good news is that I know a person who would be a great replacement for him.”
¶19 At some later point in time, Crall wrote an undated memo to Wolter summarizing issues with Vettel-Becker. This memo listed Vettel-Becker’s inappropriate behaviors, referenced the negative feedback he had received on his 2001 evaluation, and recommended his termination and a change for the department. This memo, which formed the basis for the later firing of Vettel-Becker on September 30, 2002, only briefly referred to the results of Vettel-Becker’s August 2002 evaluations, described below.
¶20 In August 2002 PCD and other Deaconess staff members Meg Hatch, Susan Thomas, Douglas Johnson, and Dr. Robert Pueriyer, filled out another evaluation of Vettel-Becker. Again the results were mixed, but many acknowledged improvements and efforts by VettelBecker in certain problem areas. Hatch made the following comments:
I feel he has made improvements in his job performance, but his underlying character remains the same. Often I often [sic] get the feeling that he is “going through the motions” and doing things he resents. To me, this job seems to be a strange fit for his personality. At a Christmas party at his home, where he was surrounded by artists, I was struck by how much more comfortable he seemed to feel with them than he does when he is in a clergy role. At his best, Richard is creative and dynamic. At his worst, he is self-centered and paranoid. Although there is little I can point to in terms of failure to do his job, I know that many staff (including me) and patients, too, look to a chaplain for the kind of inspiration, encouragement, compassion, and spiritual guidance that does not seem to come naturally to Richard (at least not anymore).
¶21 In their evaluations of Vettel-Becker, Johnson and Pueriyer painted a very different picture than that painted by Hatch. At the end of his evaluation Johnson added, “I like working with Richard. I feel he respects me as a fellow chaplain and provides direction when it is needed, but also respects and encourages my ability to do my job well.” Dr. Pueriyer also added the comment that “Richard is a leader in Ethics and Grief Mgt. A definite attribute to the team.”
¶22 Ultimately, Wolter advised Vettel-Becker of his termination on September 30, 2002. Ironically, that same day Vettel-Becker was notified that he was going to receive a managerial bonus in his next paycheck. His termination became official on October 10, 2002, after he rejected a proposed severance package. The reasons given to VettelBecker for his termination were that he was “not a good fit” at Deaconess and that his last 360 evaluation (in 2001) showed mixed reviews.
¶23 On December 24, 2002, Vettel-Becker filed a charge of discrimination against Deaconess with the HRB. Then, on December 31,2002, Vettel-Becker filed a complaint in District Court alleging that his discharge was not for good cause and violated personnel policies. He demanded a jury trial. On June 27, 2003, the Department of Labor investigator dismissed Vettel-Becker’s discrimination charges. On September 26, 2003, Vettel-Becker filed an amended complaint in Yellowstone County District Court, alleging (1) a WDEA violation; (2) employment discrimination based on his gender, religion (Episcopalian) and marital status; and (3) a claim for blacklisting and punitive damages.
¶24 Deaconess filed an answer and affirmative defenses. Subsequently, on Deaconess’ motion, the District Court granted summary judgment in favor of Deaconess on all three counts of the amended complaint. The court dismissed Vettel-Becker’s MHRA claim because he failed to make a prima facie case of marital status, gender, or religious discrimination. The court also found that, even if VettelBecker had established a prima facie case of discrimination, Deaconess demonstrated legitimate, non-discriminatory reasons for his termination that he failed to rebut as pretextual. The court also dismissed Vettel-Becker’s WDEA claim, concluding that the MHRA provided the exclusive remedy for his discharge and discrimination claims because he raised the same facts in support of both claims. Finally, the court dismissed the blacklisting claim because VettelBecker failed to raise sufficient facts to preclude summary judgment.
¶25 Vettel-Becker appeals only the entry of summary judgment on his WDEA claim. Deaconess cross-appeals the denial of its request for attorney’s fees. We reverse and remand for a trial on merits of VettelBecker’s WDEA claim. For that reason, we do not reach the cross-appeal.
STANDARD OF REVIEW
¶26 We review orders of summary judgment de novo. Arthur v. Pierre Ltd., 2004 MT 303, ¶ 14, 323 Mont. 453, ¶ 14, 100 P.3d 987, ¶ 14. We use the same M. R. Civ. P. 56 criteria applied by the district court to determine whether no genuine issue of material fact exists and whether the movant is entitled to judgment as a matter of law. Delaware v. K-Decorators, Inc., 1999 MT 13, ¶ 56, 293 Mont. 97, ¶ 56, 973 P.2d 818, ¶ 56.
¶27 Where the movant has met its burden of showing that no genuine issues of material fact exist, the opposing party bears the burden of establishing an issue of material fact by more than mere denial or speculation. Delaware, ¶ 56, quoting Bruner v. Yellowstone County, 272 Mont. 261, 264, 900 P.2d 901, 903 (1995). All reasonable inferences which can be drawn from the evidence presented must be drawn in favor of the non-moving party. Cape v. Crossroads Correctional Ctr., 2004 MT 265, ¶ 12, 323 Mont. 140, ¶ 12, 99 P.3d 171, ¶ 12.
¶28 This standard applies in the summary judgment context of a wrongful discharge claim, under § 39-2-904, MCA. Where an employee seeks to defeat an employer’s argument that a legitimate business reason supports the discharge, the employee
must offer evidence upon which a fact-finder could determine that the reason given by the employer was false, whimsical, arbitrary or capricious, or unrelated to the needs of the business. [Citations omitted.] The employee cannot defeat the employer’s motion for summary judgment by merely denying the employer’s given reason or by speculation; he or she must show facts sufficient to raise an issue to be decided by a fact-finder.
Delaware, ¶ 58.
DISCUSSION
¶29 Did the District Court correctly conclude that the filing of a MHRA claim precluded Vettel-Becker’s subsequent pursuit of a claim under the WDEA?
¶30 Title 39, Chapter 2, Section 9 of the Montana Code Annotated sets forth the procedural and substantive framework for wrongful discharge from employment claims in Montana, and provides the exclusive remedy for a wrongful discharge from employment, with certain exceptions. Section 39-2-902, MCA. Those exceptions, found at § 39-2-912, MCA, include discharges that are subject to state or federal statutes prohibiting unlawful discrimination and discharge in retaliation for reporting unlawful discrimination.
¶31 Title 49, Chapter 2, sets forth the substantive and procedural rules that govern illegal employment discrimination claims in Montana. Amongst those is the exclusivity of remedy provision, as follows:
[t]he provisions of this chapter establish the exclusive remedy for acts constituting an alleged violation of chapter 3 or this chapter, including acts that may otherwise also constitute a violation of the discrimination provisions of Article II, section 4, of the Montana constitution or 49-1-102. A claim or request for relief based upon the acts may not be entertained by a district court other than by the procedures specified in this chapter.
Section 49-2-509(7), MCA (emphasis added). The issue before us is whether this provision barred Vettel-Becker’s WDEA claim under § 39-2-902, MCA.
¶32 Vettel-Becker contends that the exclusive remedy provision of the MHRA would not preclude his pursuit of a WDEA claim in district court unless an affirmative determination in his favor had been made under the MHRA, citing Tonack v. Montana Bank of Billings, 258 Mont. 247, 255, 854 P.2d 326, 331 (1993). In Tonack, the plaintiff sued for both wrongful discharge from employment under the WDEA and for age discrimination under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621-634. Tonack was awarded damages under both Acts. This Court reversed, concluding that a favorable determination under the ADEA precluded a recovery under the WDEA. Importantly for purposes of this case, the 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.
¶33 Here, because Vettel-Becker did not receive an affirmative determination of his discrimination claim, he argues that his WDEA claim is not barred.
¶34 Second, Vettel-Becker maintains that the gravamen of his discharge claim is not the same as the gravamen of his discrimination claim. Vettel-Becker argues that he has offered facts-completely aside from any allegations of discrimination-that negate Deaconess’ proffered good cause for terminating him. He maintains that given the positive evaluations that more closely predated his discharge, together with his receipt of a bonus with his last paycheck, he raised a genuine issue of material fact as to whether he was terminated for the reasons Wolter gave him.
¶35 Deaconess argues that Vettel-Becker had his bite at the apple and that the MHRA bars another bite. Deaconess suggests that by choosing the remedy under the MHRA, Vettel-Becker waived any and all potential claims under the WDEA. Deaconess notes that the MHRA states specifically that a district court cannot entertain any claim for relief based upon acts constituting an alleged violation of the MHRA, except through provisions of the MHRA. We disagree with Deaconess’ characterization of the exclusive remedy provision as applied to the facts before us.
¶36 The District Court correctly noted this Court’s holdings in Tonack and Arthur. In Arthur, this Court held that the MHRA “bars a plaintiff from pursuing other tort claims where those claims arise from underlying allegations of... discrimination.” Arthur, ¶ 18. The District Court also observed that if an affirmative determination of a claim is obtained under other statutes as described in § 39-2-912, MCA, the WDEA may no longer be applied, citing Tonack. However, the Court further noted that where an affirmative determination of a claim under federal statute was not obtained because the administrative agency determined that the discharge did not fall under the type of activity protected by the statute, this Court has permitted the discharged employee to pursue a WDEA claim. See Schultz v. Stillwater Mining Co., 277 Mont. 154, 157, 920 P.2d 486, 487-88 (1996). As we noted in Schultz, if there is no remedy under the administrative statute, then the plaintiff would have no procedure or remedy for his dispute if his subsequent complaint for wrongful discharge were barred. Schultz, 277 Mont. at 157, 920 P.2d at 488 (Schultz, the plaintiff, first sought but was denied relief for retaliatory discharge under the Federal Mine Safety and Health Act).
¶37 Here, Vettel-Becker was denied relief under the MHRA; thus, he maintains his WDEA claim should not be barred. However, the District Court concluded that the MHRA precluded Vettel-Becker’s claim under the WDEA because he relied on the same facts for his WDEA claim as he did for his MHRA charges of discrimination. After reviewing the record in the case, and our decisions in both Tonack and Schultz, we must disagree. Because Vettel-Becker’s MHRA claim was disallowed, he is entitled to seek relief under the WDEA, provided that claim is not premised upon “underlying allegations of ... discrimination.” Arthur, ¶ 18. In this regard, we conclude his WDEA claim is not otherwise barred under the MHRA or Arthur and its progeny because Vettel-Becker’s WDEA claim is not based upon “underlying allegations of... discrimination.”
¶38 Wrongful discharge can be proven in several ways, one of which is by demonstrating that the employer lacked good cause for the discharge. “Good cause for discharge” is defined as reasonable job-related grounds for dismissal based on (1) a failure to satisfactorily perform job duties; (2) disruption of the employer’s operation; or (3) other legitimate business reason. Section 39-2-903(5), MCA. We define a “legitimate business reason” as “a reason that is neither false, whimsical, arbitrary or capricious,” and logically related to the needs of the business. Buck v. Billings Montana Chevrolet, Inc., 248 Mont. 276, 281-82, 811 P.2d 537, 540 (1991). A court must balance the right of an employer to exercise discretion over who it will employ and keep in employment against the legitimate interests of the employee to secure employment. Buck, 248 Mont. at 282, 811 P.2d at 540. “The balance should favor an employee who presents evidence, and not mere speculation or denial, upon which a jury could determine that the reasons given for his termination were false, arbitrary or capricious, and unrelated to the needs of the business.” Johnson v. Costco Wholesale, 2007 MT 43, ¶ 23, 336 Mont. 105, ¶ 23, 152 P.3d 727, ¶ 23, quoting Kestell v. Heritage Care Corp., 259 Mont. 518, 526, 858 P.2d 3, 8 (1993).
¶39 Deaconess did not present evidence or argue that VettelBecker failed to satisfactorily perform job duties or disrupted his employer’s operation; therefore, under § 39-2-903(5), MCA, VettelBecker is left with defeating the arguably “legitimate business reason[s]” Deaconess gave Vettel-Becker as “good cause” for his discharge: his mixed reviews and his not being a “good fit.” VettelBecker’s WDEA claim rested on debunking the Deaconess’ proffered legitimate business reasons for discharge by showing that they were false, whimsical, arbitrary or capricious. Vettel-Becker does not rely on the same facts that supported his discrimination claim, such as Radcliffe’s comments to him about his hyphenated name. Rather he relies on facts supporting his theory that the discharge was arbitrary, including the fact that his most recent evaluation showed improvement, the fact that he received a managerial bonus with his last paycheck, and the fact that Crall (who openly disliked VettelBecker according to some) provided Wolter with a summary of specific “inappropriate” incidents, which Vettel-Becker’s witnesses in turn refuted, raising an inference of pretext. In short, Vettel-Becker’s WDEA claim does not rest or depend upon establishing discrimination. Therefore, the MHRA is not, under these facts, Vettel-Becker’s exclusive remedy for his wrongful discharge claim.
¶40 Discrimination can occur without a wrongful discharge and wrongful discharge can occur without a discriminatory act. Along these same lines, there can be facts supporting a claim for discrimination and other facts supporting a claim for wrongful discharge arising from the same case. Where the plaintiff charges discrimination but fails to demonstrate a prima facie case entitling him to recover, the dismissal of his discrimination claim does not preclude a wrongful discharge claim, as long as that claim is not premised upon underlying allegations of discrimination. Therefore, we turn to the propriety of summary judgment on the merits of the case.
¶41 Did the District Court correctly conclude that Deaconess was entitled to summary judgment as a matter of law on the WDEA claim?
¶42 Vettel-Becker argues he presented sufficient facts, and not mere speculation, that raise a genuine issue of material fact as to whether good cause supported his termination. Vettel-Becker specifically argued before the District Court that the reasons he was given for his discharge were false, whimsical, arbitrary, or capricious.
¶43 “In order for an employee to create an issue of fact on the issue of good cause in regards to a pretext, the employee must ‘prove that the given reason for the discharge... is a pretext and not the honest reason for the discharge.’ ” Johnson, ¶ 28, quoting Arnold v. Yellowstone Mountain Club, LLC, 2004 MT 284, ¶ 26, 323 Mont. 295, ¶ 26, 100 P.3d 137, ¶ 26. In challenging the legitimacy of the proffered reasons for his discharge, Vettel-Becker points out that his 2002 evaluations showed improvement as did the 2001 evaluation by Crall. He also points out that attached to his last pay check was a managerial bonus for achieving goals. Vettel-Becker supports his pretext claim by presenting Crall’s summary of issues that she gave to Wolter and that explained her reasons for wanting to discharge Vettel-Becker. He also points to the fact that Crall told him he would have a clean slate upon reporting to her in 2000, and yet she recommended his termination sometime in 2001 or 2002, listing incidents dating back to before 2000. These facts raise a genuine issue of material fact as to the legitimacy of his termination for “mixed reviews.”
¶44 The second ostensible reason for Vettel-Becker’s discharge was that he was “not a good fit” at Deaconess. On its face, this reason without more does not suggest a legitimate business reason for a termination. As Vettel-Becker argues, the record reflects that he worked at Deaconess for sixteen years during which time his “fit” was never a problem. Moreover, Vettel-Becker provided evidence that there were staff at Deaconess that believed him to be a good fit, a good team player, and a good pastor.
¶45 Because Vettel-Becker raised genuine issues of material fact regarding the legitimacy of the proffered reasons for his discharge, we conclude it was error for the district court to enter summary judgment against Vettel-Becker on the merits of his wrongful discharge claim.
CONCLUSION
¶46 For the foregoing reasons, we conclude that the District Court erred in concluding that Vettel-Becker’s WDEA claim was precluded by the exclusive remedy provision of the MHRA. We further conclude that the court erred in granting Deaconess summary judgment without reaching the merits of the WDEA claim. Therefore, we reverse and remand for a trial of Vettel-Becker’s WDEA claim.
CHIEF JUSTICE GRAY, JUSTICES NELSON, WARNER, LEAPHART, MORRIS and RICE concur.
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 Appellant C.T. is the natural father of S.T. C.T.’s parental rights were terminated upon a petition by the Department of Public Health and Human Services (DPHHS) and a hearing in the Third Judicial District Court, Granite County. We affirm.
¶2 We address the following issue on appeal:
¶3 Did the District Court abuse its discretion by terminating C.T.’s parental rights on the basis of facts not alleged in DPHHS’s petition or supported by the evidence?
FACTUAL AND PROCEDURAL BACKGROUND
¶4 DPHHS initially filed a Petition for Emergency Protective Services and Temporary Legal Custody of S.T. and her natural mother, A.S., then a minor living in foster care, in October 2004. The basis for that petition was that A.S. and S.T. had been living with C.T. for two years, C.T. was a convicted sex offender, and A.S. and S.T. had been exposed to domestic violence. The District Court granted DPHHS’s petition. On August 9, 2005, S.T. was adjudicated a youth in need of care.
¶5 After more than two years of involvement by DPHHS, a Petition for Permanent Legal Custody and Termination of Parental Rights with Right to Consent to Adoption was filed with regard to C.T. on January 17, 2007. That petition alleged that a treatment plan for C.T. was not necessary because C.T. had been previously convicted of sexual intercourse without consent with a minor. The affidavit of social worker Katherine Winter was attached to DPHHS’s petition and incorporated therein, and stated that S.T. was removed from C.T.’s custody “due to on-going domestic violence between [C.T.] and [A.S.]. [C.T.] demolished their home, choked [A.S.] down to the ground, ripped her clothes off and threatened to rape her. This occurred in front of [S.T.].” The affidavit also stated that C.T. had previously been convicted of sexual intercourse without consent of a young girl and of criminal endangerment, and had never completed his sexual predator classes. In addition, the affidavit stated that C.T. had been arrested in August 2005 for failing to register as a sexually violent offender, and that he was also currently incarcerated awaiting trial on two felony burglary charges and one felony theft charge. The affidavit noted that C.T. had been incarcerated since September 2005 and that his last physical contact with S.T. was on August 18, 2005.
¶6 The District Court held a termination hearing on February 20, 2007. DPHHS began the hearing by requesting that the court take judicial notice of certified copies of the criminal information and judgment regarding the two counts of sexual intercourse without consent to which C.T. had pled guilty in 1997. After asking if there was any objection and receiving none, the court took judicial notice of the documents. DPHHS also advised the District Court that C.T. had been sentenced, on the same day as the termination hearing, to a twelve-year sentence with the Department of Corrections, with six years suspended, on the felony burglary charge referred to in Ms. Winter’s affidavit. The District Court issued its findings of fact, conclusions of law, and order terminating C.T.’s parental rights on April 17, 2007. The District Court’s conclusions were based on C.T.’s having committed sexual intercourse without consent on a child, his continual incarceration for the previous seventeen months, and his newly-ordered six-year prison sentence. C.T. appeals.
STANDARD OF REVIEW
¶7 We review a district court’s decision to terminate parental rights for an abuse of discretion. In re M.A.L., 2006 MT 299, ¶ 17, 334 Mont. 436, ¶ 17, 148 P.3d 606, ¶ 17. “The test for an abuse of discretion is whether the trial court acted arbitrarily, without employment of conscientious judgment, or exceeded the bounds of reason resulting in substantial injustice.” In re M.A.L., ¶ 17.
¶8 Because “[a] parent’s right to care and custody of a child is a fundamental liberty interest,” In re J.A.B., 1999 MT 173, ¶ 14, 295 Mont. 227, ¶ 14, 983 P.2d 387, ¶ 14, when determining whether to terminate parental rights a district court’s factual findings must be made in accordance with § 41-3-609, MCA. In re L.H., 2007 MT 70, ¶ 13, 336 Mont. 405, ¶ 13, 154 P.3d 622, ¶ 13. We review a district court’s findings of fact for clear error. In re M.A.L., ¶ 17. “A finding of fact is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence or if, upon reviewing the record, this Court is left with the definite and firm conviction that the district court made a mistake.” In re L.H., ¶ 13.
¶9 We review a district court’s ruling on the admissibility of evidence for an abuse of discretion. In re M.A.L., ¶ 17.
DISCUSSION
¶10 Didl the District Court abuse its discretion by terminating C.T.’s parental rights on the basis of facts not alleged in DPHHS’s petition or supported by the evidence?
¶ 11 C.T. argues that the District Court abused its discretion by relying on two grounds for termination not raised by DPHHS in its petition. Specifically, C.T. points out that DPHHS’s petition did not allege that (1) C.T. had failed to complete a treatment plan, and (2) C.T. had been incarcerated since 2005 and was recently sentenced to a six-year prison term. The District Court entered both of these facts in its findings of fact.
¶12 DPHHS responds that it met its burden of proof on at least one basis that was specifically alleged in its petition. DPHHS alleged that C.T. had previously been convicted of sexual abuse of a child, an aggravating circumstance, which negates the requirement to have a treatment plan and supports termination under § 41-3-609(l)(d), MCA.
¶13 Anticipating the State’s argument, C.T. argues that the District Court improperly relied upon the criminal information and judgment of C.T.’s sexual intercourse without consent convictjon-of which the court took judicial notice-because although DPHHS requested the court take judicial notice, DPHHS never actually requested that the court admit the documents after taking judicial notice. Therefore, C.T. argues, the documents were never received into evidence, and there was therefore no evidence to support termination of his parental rights on this ground.
¶14 A district court may terminate parental rights upon finding by clear and convincing evidence that the parent has subjected a child to any of the circumstances listed in § 41-3-423(2)(a) through (2)(e), MCA. Section 41-3-609(l)(d), MCA. One such circumstance permitting termination of the parent-child relationship is a finding that the parent “subjected a child to aggravating circumstances, including ... sexual abuse....” Section 41-3-423(2)(a), MCA. The definition of “sexual abuse” includes sexual intercourse without consent. Section 41-3-102(27), MCA. In addition, while DPHHS normally must “make reasonable efforts to prevent the necessity of removal of a child from the child’s home and to reunify families that have been separated by the state[,]” § 41-3-423(1), MCA, such as by creating a treatment plan for the parent, that duty is relieved when any of the circumstances in § 41-3-423(2)(a) through (2)(e), MCA, have occurred. Section 41-3-423(2), MCA.
¶15 Further, where a district court relies on more than one statutory basis in terminating parental rights, any one basis, if correctly relied upon, is sufficient to support termination under § 41-3-609(1), MCA. In re 1998 MT 142, ¶ 18, 289 Mont. 232, ¶ 18, 961 P.2d 105, ¶ 18; In re M.J.D., 225 Mont. 200, 205, 731 P.2d 937, 941 (1987). In In re the district court terminated a father’s parental rights on five separate statutory grounds. ¶ 15. Although the father challenged the district court’s holding pursuant to several of the grounds relied upon, and indeed was successful in establishing error on some, the father did not challenge the district court’s conclusion that he had abandoned the child-a sufficient basis alone for terminating parental rights. ¶ 18. DPHHS had satisfied its burden of proof to establish that ground, and thus, we affirmed the district court’s termination of the father’s parental rights. ¶¶ 22-23.
¶16 Here, C.T. does not challenge the District Court’s finding that he had previously sexually abused a child, or the District Court’s termination of his parental rights on that substantive basis. Rather, C.T. challenges the District Court’s reliance upon the judicially-noticed criminal information and judgment convicting C.T. of sexual intercourse without consent against a minor. According to C.T., the District Court took judicial notice of those documents but never “received” them into evidence, and thus, the District Court could not rely on that evidence in entering its findings of fact. However, we fail to see the distinction.
¶17 The Montana Rules of Evidence provide that judicial notice may be taken of a fact “not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot be reasonably questioned.” M. R. Evid. 201(b). While ordinarily discretionary, taking judicial notice is “mandatory” under the Rules “if requested by a party and supplied with the necessary information.” M. R. Evid. 201(d). In a civil proceeding, facts judicially noticed are accepted as conclusive. M. R. Evid. 201(g). Indeed, “[w]hen facts are not subject to reasonable dispute, ... the District Court saves time and money for all parties by taking judicial notice of those facts.” State v. Hart, 191 Mont. 375, 389-90, 625 P.2d 21, 29 (1981) (citing Commn. Comment, M. R. Evid. 201). Taking judicial notice of facts not subject to reasonable dispute saves time and money because it dispenses with the need for formal proof of facts. See White v. White, 480 P.2d 872, 876 (Idaho 1971). Thus, once a fact is properly judicially noticed, the party offering such evidence is relieved of the duty to also move for its admission. Taking judicial notice of such facts accomplishes that purpose.
¶18 The District Court took judicial notice of C.T.’s sexual intercourse without consent conviction, and C.T. did not object. C.T.’s conviction was not subject to reasonable dispute. As such, the District Court was entitled to rely on that conviction as clear and convincing evidence that C.T. had sexually abused a child. See In re M.A.L., ¶ 52 (“A certified copy of a prior conviction meets the definition of clear and convincing evidence to establish an aggravated circumstance.”) (citation omitted). Such a finding constituted a sufficient basis-regardless of the court’s other findings and whether such findings were in error or not-to terminate C.T.’s parental rights. Sections 41-3-609(l)(a) and 41-3-423(2)(a), MCA. DPHHS established by clear and convincing evidence that C.T. subjected a child to sexual abuse. The record reflects that C.T. was charged and convicted of sexual intercourse without consent against a minor.
¶19 Because we hold that the District Court did not abuse its discretion by terminating C.T.’s parental rights on the basis of his prior conviction of sexual intercourse without consent against a minor, we do not address C.T.’s argument that the District Court erred by finding that C.T. failed to complete a treatment plan, had been incarcerated since 2005, and was sentenced to six years with the Department of Corrections when those facts had not been raised in DPHHS’s petition. Since at least one statutory basis for the District Court’s decision was established, any issues regarding the court’s alternative bases for terminating C.T.’s parental rights are moot. In re 1998 MT 142, ¶ 18, 289 Mont. 232, ¶ 18, 961 P.2d 105, ¶ 18. ¶20 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, COTTER, NELSON, WARNER and MORRIS concur.
The petition did state that “a treatment plan is not required ... because [C.T.] meets the criteria of Mont. Code Ann. § 41-3-609(l)(d).” The petition also expressly “incorporated” Ms. Winter’s affidavit, which stated that C.T. was currently incarcerated on two felony burglary charges, and had been incarcerated since September 2005. C.T.’s six-year sentence on those burglary charges was not levied until the day of his termination hearing, and thus was not raised in the petition filed three months earlier.
In addition, the record reflects that during his testimony at the termination hearing, C.T. acknowledged his conviction for sexual intercourse without consent against a minor and acknowledged that he had served time in prison for that offense.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Access Organics, Inc., sued two of its former employees, Andy Hernandez and Mike Vanderbeek, to enforce non-compete and nondisclosure agreements. The District Court issued a temporary restraining order prohibiting Hernandez or Vanderbeek from competing with Access Organics and from disclosing any trade secrets. The court also issued a preliminary injunction, restraining Hernandez and Vanderbeek from contacting any of Access Organics’s customers. Hernandez appeals, arguing the District Court erred in issuing the preliminary injunction because the non-compete agreement is unenforceable as a matter of law. We reverse and remand.
¶2 We restate the issue as follows:
¶3 Did the District Court err in concluding that the non-compete agreement was enforceable as a matter of law, and thus in granting preliminary injunctive relief to Access Organics?
BACKGROUND
¶4 On April 25, 2005, Bonnie Poux hired Andy Hernandez (“Hernandez”) to sell organic produce for her sole proprietorship, Access Organics Sales (“Access Organics”). In July 2005, Hernandez was promoted to sales manager. On August 29,2005, four months after his employment began, Hernandez signed a non-compete agreement and a non-disclosure agreement. The non-compete agreement provided in relevant part:
For good consideration and as an inducement for Access Organics (the Company) to employ Andy Hernandez, the undersigned Employee hereby agrees not to directly or indirectly compete with the business of the Company and it successors and assigns during the period of employment and for a period of two years following termination of employment....
¶5 Shortly after Access Organics began experiencing financial difficulties and laid off Hernandez and several other employees. Hernandez voluntarily returned to the company on a part-time basis but resigned a short time later. Hernandez then entered into business with another former Access Organics employee, Mike Vanderbeek (‘Vanderbeek”). Full Circle Sales, Hernandez’s new company, was located in the Kalispell area and dealt in both organic and conventional produce.
¶6 Access Organics brought suit to enforce the non-compete and nondisclosure agreements signed by Hernandez and Vanderbeek. Access Organics applied for injunctive relief, including a temporary restraining order, and filed a complaint against Hernandez and Vanderbeek. The complaint alleged that Hernandez and Vanderbeek violated their non-compete and non-disclosure agreements, breached their respective contracts, and intentionally sought to interfere with Access Organics’s prospective economic advantage by operating Full Circle Sales.
¶7 The District Court granted the temporary restraining order, which stated: “Defendants are restrained from owning, operating, and managing any business engaged in the same business as Access Organics, Inc., within Flathead County, MT, [and] consulting with, or being employed in any capacity, by any company engaged in the same business as Access Organics and using, disclosing, or divulging to others, trade secrets, confidential information, or proprietary data of Access Organics.”
¶8 The District Court held a hearing to determine whether Access Organics was entitled to further injunctive relief. Access Organics presented affidavits from several of their customers which testified that they had been contacted by Hernandez or Vanderbeek on behalf of Full Circle Sales, in an attempt to solicit their business. The District Court found that Hernandez and Vanderbeek used contacts acquired prior to their employment with Access Organics, as well as contacts gained while employed with Access Organics.
¶9 The District Court held that Hernandez and Vanderbeek violated their non-compete agreements by owning, operating, and managing Full Circle Sales. The District Court found that the non-compete agreements were enforceable, because they were restricted in length to two years, were based on good consideration (“continuation of Defendants’ employment, and therefore, income”), and did not interfere with the public interest. Thus, the District Court granted a preliminary injunction in favor of Access Organics, enjoining Hernandez and Vanderbeek “from contacting any current or former client of Access Organics ... with regard only to any aspect of the business of organic produce and from using, disclosing, or divulging to others the list of Access Organics’ [sic] customers ....” Only Hernandez appeals.
STANDARD OF REVIEW
¶10 Where the district court grants or denies injunctive relief based upon conclusions of law, we review the conclusions of law to determine whether they are correct. Benefis Healthcare v. Great Falls Clinic, 2006 MT 254, ¶ 11, 334 Mont. 86, ¶ 11, 146 P.3d 714, ¶ 11.
DISCUSSION
¶11 Did the District Court err in concluding that the non-compete agreement was enforceable as a matter of law, and thus in granting preliminary injunctive relief to Access Organics?
¶12 Normally, we review a district court’s order granting or denying preliminary injunctive relief for abuse of discretion only. Knudson v. McDunn, 271 Mont. 61, 64, 894 P.2d 295, 297 (1995) (citation omitted). However, where the district court’s decision to grant injunctive relief is premised on conclusions of law, there is no discretion involved. Knudson, 271 Mont. at 64, 894 P.2d at 297. In such cases, we review the district court’s conclusions of law for correctness. Knudson, 271 Mont. at 64, 894 P.2d at 297.
¶13 Here, the District Court concluded as a matter of law that the agreement was enforceable and did not constitute an unreasonable restraint of trade under § 28-2-703, MCA. Thus, the court enjoined Hernandez from contacting any current or former customer of Access Organics, and from using or disclosing Access Organics’s customer list. Because the District Comb granted the injunctive relief based solely on a conclusion of law, we will review the court’s conclusions of law for correctness.
¶14 Is the non-compete agreement an unreasonable restraint of trade in violation of§ 28-2-703, MCA?
¶15 Contracts in restraint of trade are disfavored: “Any contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than is provided for by 28-2-704 or 28-2-705, is to that extent void.” Section 28-2-703, MCA.
¶16 However, we have upheld agreements which impose reasonable restrictions on trade. To be upheld as reasonable, a covenant not to compete must meet three requirements:
(1) [I]t must be partial or restricted in its operation in respect either to time or place;
(2) it must be on some good consideration; and
(3) it must be reasonable, that is, it should afford only a fair protection to the interests of the party in whose favor it is made, and must not be so large in its operation as to interfere with the interests of the public.
Montana Mountain Products v. Curl, 2005 MT 102, ¶ 11, 327 Mont. 7, ¶ 11, 112 P.3d 979, ¶ 11 (citing O’Neill v. Ferraro, 182 Mont. 214, 218-19, 596 P.2d 197, 199 (1979)). As the party seeking to enforce the non-compete agreement, Access Organics bears the burden of proving that the agreement does not violate § 28-2-703, MCA. Daniels v. Thomas, Dean & Hoskins, Inc., 246 Mont. 125, 144, 804 P.2d 359, 370 (1990); State Med. Oxygen v. Amer. Med. Oxygen, 240 Mont. 70, 74, 782 P.2d 1272, 1275 (1989); First American Ins. Agency v. Gould, 203 Mont. 217, 223, 661 P.2d 451, 454 (1983).
¶17 Since Montana’s public policy strongly disfavors agreements in restraint of trade, as discussed above, we construe non-compete agreements strictly:
Contracts not to compete are by their nature in restraint of trade and are not favorably regarded by the courts. In interpreting or construing contracts which impose restrictions on the right of a party to engage in a business or occupation, the court is governed by a strict rule of construction. The agreement will not be extended by implication, and it will be construed in favor of rather than against the interest of the covenantor.
Dumont v. Tucker, 250 Mont. 417, 421, 822 P.2d 96, 98 (1991) (citing 54 Am. Jur. 2d Monopolies Etc. § 521).
¶18 Is the agreement supported by the necessary “good consideration”?
¶19 Hernandez argues that the non-compete agreement is invalid and unenforceable, because it is not supported by good consideration. Access Organics contends that Hernandez’s salary and continued employment supplied sufficient consideration. Section 28-2-801, MCA, provides that “[a]ny benefit conferred or agreed to be conferred upon the promisor by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered or agreed to be suffered by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor is a good consideration for a promise.”
¶20 Consideration exists if the employee enters into the non-compete agreement at the time of hiring. During pre-employment negotiations, the employee and the employer engage in a bargained-for exchange: the employer obtains the desired non-compete agreement, and in return, the employee receives employment. The non-compete agreement is simply a condition of employment which the employee takes into account when accepting or rejecting the employment offer. Here, the agreement purports to offer employment in exchange for Hernandez’s promise not to compete: “as an inducement for Access Organics ... to employ Andy Hernandez, [he]... hereby agrees not to ... compete ....”
¶21 However, Hernandez signed the agreement more than four months after accepting his initial employment offer from Access Organics. The record clearly shows that the agreement was not signed as part of Access Organics’s pre-employment negotiations with Hernandez. The basic precepts of black letter contract law teach us that “past consideration is not sufficient to support a promise.” See e.g. Public Employees Ass’n v. Office of Gov., 271 Mont. 450, 455, 898 P.2d 675, 678 (1995) (citation omitted). Thus, prior work may not serve as consideration. Public Employees Ass’n, 271 Mont. at 450, 898 P.2d at 678. Access Organics’s initial offer of employment to Hernandez is past consideration and may not serve as consideration for the non-compete agreement signed four months later.
¶22 However, “afterthought agreements”-non-compete agreements signed by employees after the date of hire-are not automatically invalid. Jordan Leibman & Richard Nathan, The Enforceability of Post-Employment Noncompetition Agreements Formed After At-Will Employment Has Commenced: The “Afterthought” Agreement, 60 S. Cal. L. Rev. 1465 (1987) (coining the term “afterthought agreements”). Non-compete agreements entered into by existing employees may be supported by independent consideration. For example, an employer may provide an employee with a raise or promotion in exchange for signing a non-compete agreement. In such instances, the salary increase or promotion serves as good consideration. Access to trade secrets or other confidential information may also suffice as a form of good consideration. Daniels, 246 Mont. at 145, 804 P.2d at 371. In each of these examples, the employee receives a benefit which constitutes good consideration in exchange for his or her promise not to compete.
¶23 Hernandez did earn a promotion and a raise during his time with Access Organics, but he was not asked to sign the non-compete agreement until a month after he was promoted. As discussed above, past consideration cannot serve as good consideration for a present agreement. Public Employees Ass’n, 271 Mont. at 450, 898 P.2d at 678. Hernandez testified that he did not receive any independent consideration, such as access to trade secrets, in exchange for signing the agreement. Access Organics failed to present any evidence to the contrary.
¶24 Access Organics argues that the continued employment and salary that Hernandez received sufficed as good and independent consideration, citing Langager v. Crazy Creek Products, Inc., 1998 MT 44, 287 Mont. 445, 954 P.2d 1169. In Langager, we upheld an employer’s revisions to the employee handbook, because “Langager continued to work for Crazy Creek, thereby supplying the necessary consideration” for the changes in the terms of her employment. Langager, ¶ 20.
¶25 However, Langager is distinguishable on several grounds. First, in Langager, we found that the employees had ample opportunity to sufficiently bargain for the manual’s terms. Langager, ¶ 20. By contrast, Hernandez had no input as to the terms of the boilerplate non-compete agreement drafted by Access Organics and its lawyers. Second, non-compete agreements are disfavored and will be interpreted strictly and to the advantage of the employee. Dumont, 250 Mont. at 421, 822 P.2d at 98. When a current employee is required to sign a non-compete agreement, the employer and employee are not on equal bargaining ground: the employee is vulnerable to heavy economic pressure to sign the agreement in order to keep his job. See e.g. Leibman & Nathan, 60 S. Cal. L. Rev. at 1491. Thus, in the context of non-compete agreements, we require clear evidence that the employee received good consideration in exchange for bargaining away some of his post-employment freedom to practice the profession or trade of his choice.
¶26 Some states have held that continued employment, absent other independent consideration, fails to suffice as good consideration. See e.g. Labriola v. Pollard Group, Inc., 100 P.3d 791, 794 (Wash. 2004) (“A noncompete agreement entered into after employment will be enforced if it is supported by independent consideration .... Independent, additional, consideration is required for the valid formation of a modification or subsequent agreement. There is no consideration when one party is to perform some additional obligation while the other party is simply to perform that which he promised in the original contract.”) (citations and internal quotation marks omitted). We decline to broadly hold that continued employment may never serve as sufficient consideration. For example, where an at-will employee is specifically guaranteed a definite period of continued employment, the employee receives consideration in the form of contracted-for job security. However, here, no such promise of continued employment was made. Hernandez was an at-will employee. He did not receive any additional job security or extended term of employment in exchange for signing the agreement. Access Organics could have terminated his employment at any point. In such circumstances, the simple fact of the employee’s continued employment may not serve as sufficient consideration.
¶27 In sum, the agreement between Hernandez and Access Organics is not supported by any of the above-mentioned forms of consideration. The agreement provides “[f]or good consideration and as an inducement for Access Organics (the Company) to employ Andy Hernandez, the undersigned Employee hereby agrees not to directly or indirectly compete ....” Yet, it was signed more than four months after Hernandez was hired. Hernandez did not receive a promotion, a raise, or access to confidential information in exchange for signing this agreement. Nor did Hernandez receive any additional training or any promise of continued employment for a specified period of time. In short, Hernandez did not receive any benefit, and Access Organics did not incur any obligation or detriment that would serve as consideration to support this non-compete agreement.
¶28 We conclude that the District Court erred by finding that the “continuation of Defendants’ employment, and therefore, income” sufficed as consideration. We hold that Access Organics failed to meet its burden of proof by showing that the agreement was supported by good consideration. An agreement not to compete must satisfy all three prongs of the reasonableness test in order to be upheld. State Med. Oxygen, 240 Mont. at 74, 782 P.2d at 1275. Since the agreement between Hernandez and Access Organics lacks consideration, we need not reach the other two prongs. The agreement violates § 28-2-703, MCA, and is unenforceable.
CONCLUSION
¶29 We conclude that the covenant not to compete between Andy Hernandez and Access Organics is unenforceable for lack of consideration. Thus, the District Court erred in determining that the agreement was enforceable as a matter of law. Since the agreement is unenforceable as a matter of law, the District Court also erred in granting the preliminary injunction against Hernandez. Thus, we reverse and remand for further proceedings consistent with this opinion.
CHIEF JUSTICE GRAY, JUSTICES WARNER, COTTER and MORRIS concur.
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶1 John and Blanche Puffer (Puffers) appeal from several orders of the Eleventh Judicial District, Flathead County, denying a motion for substitution of judge filed by the Puffers’ surety, enforcing an arbitration award against the Puffers, awarding George Eisenhart (Eisenhart) attorney fees, and dismissing the Puffers’ counterclaims. We affirm.
¶2 The Puffers raise ten issues on appeal that we consolidate into the following issues:
¶3 Whether the District Court properly denied the request for substitution of judge filed by the Puffers’ surety.
¶4 Whether the District Court properly enforced the arbitration award against the Puffers and their surety.
¶5 Whether the District Court properly awarded attorney fees and costs to Eisenhart.
¶6 Whether the District Court properly dismissed the Puffers’ counterclaims.
PROCEDURAL AND FACTUAL BACKGROUND
¶7 The Puffers contracted with Eisenhart to build a house in Flathead County. The contract contained an arbitration provision. Disagreement on the contract price prompted Eisenhart to file a construction lien on the property on August 22,2002. The Puffers filed a bond through their surety, Fidelity and Deposit Company of Maryland (F&D), on September 18, 2002, to release the construction lien. The dispute proceeded to arbitration. The arbitrator issued an award for Eisenhart.
¶8 Eisenhart filed a new action in District Court in August 2004, two years after receiving the arbitration award. In this new action, Eisenhart sought to foreclose the construction lien and sued for breach of contract, recovery pursuant to unjust enrichment, and for recovery in quantum meruit. The court consolidated this action with the original construction lien action Eisenhart filed in 2002. The District Court issued a final judgment on the arbitration award in favor of Eisenhart. The Puffers responded by moving to alter or amend the judgment and stay the proceedings. The Puffers also filed a counterclaim.
¶9 Eisenhart sought to enforce the judgment on the arbitration award against the Puffers and F&D. Eisenhart moved on May 31, 2005, for an order to show cause why F&D should not be liable for the amount awarded to Eisenhart. The court issued the order to show cause on June 17, 2005, and set a hearing date. Eisenhart alleges that the Puffers’ counsel refused to accept service on behalf of F&D, however, despite his representations that he also represented F&D. Eisenhart moved to continue the show cause hearing based on the Puffers’ counsel’s refusal to accept service. The District Court issued an amended order to show cause on June 28, 2005. The Puffers’ counsel finally appeared on behalf of F&D on July 12, 2005. The Puffers’ counsel filed a motion for substitution of judge on behalf of F&D three days later.
¶10 The District Court denied F&D’s motion for substitution of judge based on its determination that the Puffers’ right to file such a motion had expired. The court concluded that F&D, as the Puffers’ surety, possessed no independent right to file the motion under § 3-1-804, MCA. The District Court confirmed the arbitration award against the Puffers and F&D. The District Court confirmed Eisenhart’s attorney fees and costs associated with arbitration and enforcing the arbitration award. The District Court also dismissed the Puffers’ counterclaims after the Puffers had failed to respond to Eisenhart’s motion to dismiss.
DISCUSSION
¶11 Whether the District Court properly denied the request for substitution of judge filed by the Puffers’ surety.
¶12 The Puffers argue that the District Court wrongly determined that F&D’s time for filing a motion for substitution of judge expired when the Puffers’ right to file this same motion expired. The Puffers maintain that F&D had an independent right to file the motion free from the Puffers’ time constraints. The Puffers point to the fact that F&D was not a named party to the action and had entered the action only by virtue of the order to show cause filed by Eisenhart. The Puffers contend that F&D’s timely exercise of its independent right to substitution pursuant to § 3-1-804, MCA, voided all orders entered after its filing.
¶13 A district court’s ruling on a motion to substitute a district court judge presents a question of law: We review a district court’s conclusions of law to determine whether they are correct. Mattson v. Montana Power Co., 2002 MT 113, ¶ 7, 309 Mont. 506, ¶ 7, 48 P.3d 34, ¶ 7.
¶14 Section 3-1-804, MCA, sets forth the procedure for substituting a presiding district court judge. A party must file a motion for substitution within thirty days after service of a summons or ten days after service of an order to show cause. Section 3-l-804(c), MCA. Subsequently joined parties generally are barred from filing a motion for substitution once the original party’s time has expired. Mattson, ¶¶ 13-14. An exception exists, however, when a subsequently joined party can demonstrate adversity with its co-party to the action. Goldman Sachs Group v. Mont. Second Dist. Court, 2002 MT 83, ¶ 17, 309 Mont. 289, ¶ 17, 46 P.3d 606, ¶ 17.
¶15 The District Court determined that no adversity existed between the Puffers and F&D. This absence of adversity rendered F&D’s motion -untimely in light of the fact that F&D filed its motion nearly a year after service of summons on the Puffers. The Puffers and F&D maintain, however, that they need not demonstrate adversity in order to establish an independent right to move for substitution of judge. They attempt to distinguish Goldman on the grounds that F&D was not a named party to the action and had entered the case pursuant to an order to show cause rather than by service of summons.
¶16 The Puffers’ attempt to distinguish Goldman proves unavailing. We refused in Mattson to consider the manner in which the moving party entered the action. We held instead that § 3-1-804(1) states on its face that “[o]nce the time expires for the original parties to move for substitution, subsequently joined parties may not do so.” Mattson, ¶¶ 13-14. The fact that F&D was not a named party to the action and entered the case pursuant to an order to show cause is irrelevant.
¶17 Moreover, we agree with the District Court that F&D cannot demonstrate adversity. The construction lien statute, § 71-3-551(3), MCA, entitles a successful lien claimant to recover either from the principal or directly from the surety. Section 71-3-551(3), MCA, makes no distinction between the Puffers and F&D regarding liability for Eisenhart’s claim. F&D cannot demonstrate adversity with the Puffers under these circumstances.
¶18 F&D’s motion would have been untimely regardless of F&D’s ability to demonstrate adversity to the Puffers. The statute provides that a motion to substitute a judge must be filed within “[ten] consecutive days after service of an order to show cause....” Section 3-1-804(c), MCA. The Puffers argue that the statutory period did not begin to run until July 12, 2005, when the Puffers’ counsel finally accepted service of the order to show cause on behalf of F&D. As a result, the Puffers contend that F&D timely filed its motion to substitute a judge on July 15, 2005.
¶19 In fact, the court first issued the order to show cause on June 17, 2005. Eisenhart attempted service of the order on June 22, 2005. The Puffers’ counsel refused to accept service, despite repeated efforts by Eisenhart. The Puffers’ counsel also represented F&D, and thus F&D should have been on notice of the order to show cause proceeding. The court amended the order and finally issued it on June 28, 2005. The District Court accepted June 22, 2005, the date Eisenhart first attempted service on F&D, as the date to begin tolling the statutory period. We agree. F&D failed to comply with the ten day rule set forth in § 3-l-804(c), MCA. The District Court properly denied F&D’s motion for substitution of judge.
¶20 Whether the District Court properly enforced the arbitration award against the Puffers and their surety.
¶21 The Puffers and F&D maintain that the arbitration award entered by the District Court may not be enforced against F&D. They allege that F&D’s status as the surety insulated it from enforcement of the arbitration award. We review de novo a district court’s conclusions of law, including whether an arbitration award is valid. Wells Fargo Bank v. Talmage, 2007 MT 45, ¶ 12, 336 Mont. 125, ¶ 12, 152 P.3d 1275, ¶ 12.
¶22 The Puffers filed a surety bond issued by F&D to release the Puffers’ property from Eisenhart’s construction lien on September 18, 2002. Section 71-3-551, MCA, provides that such bonds “shall be conditioned that if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment....” Section 71-3-551(3), MCA (emphasis added). The judgment in this case encompasses the arbitration award arising from the original construction lien claim. The statute clearly provides that a lien claimant may proceed against either the principal or his surety. Section 71-3-551(3), MCA.
¶23 We reiterated this principle in James Talcott Const. v. P&D Land Ent., 261 Mont. 260, 862 P.2d 395 (1993), in which we stated that, as a condition of the bond, the statute “requires the principal or his surety to immediately pay a construction lien claimant any judgment the claimant receives.” James Talcott Const., 261 Mont. at 266, 862 P.2d at 399. The Puffers and F&D have pointed to no authority that contradicts this statutory provision. Their assertion that F&D’s status as surety insulates it from enforcement finds no support from the clear language of § 71-3-551(3), MCA. We determine that the District Court properly enforced Eisenhart’s arbitration award against F&D as surety on the construction lien bond.
¶24 The Puffers and F&D also contend that F&D’s status as a non-party to the litigation to enforce the award rendered void the judgment against F&D. They argue that the District Court may not enter a judgment against a person or entity that is not a party to the litigation. It is axiomatic that a judgment cannot be entered against one who is not a party to the lawsuit. Even though the manner in which F&D was joined in this action can be described only as bizarre, we affirm the judgment against F&D.
¶25 Eisenhart’s counsel elected not to file a third-party complaint against F&D. Eisenhart’s counsel instead moved the District Court for an order to show cause why judgment for the amount owed by the Puffers should not be entered against F&D. No summons was issued. The Puffers’ counsel filed a brief resisting the order to show cause, but he did so on behalf of the Puffers, not on behalf of F&D. According to Eisenhart’s counsel, the Puffers’ counsel acknowledged that he represented F&D, but refused to accept service of the order to show cause. Eisenhart’s counsel moved to postpone the requested show cause hearing for the reason that he had failed to serve F&D. The Puffers’ counsel finally filed an appearance for F&D in this action, effectively appearing on its behalf, in addition to being the Puffers’ counsel.
¶26 Procedural wrangling regarding disqualification of the district judge ensued. The Puffers then appealed to this Court the issue of the District Court’s original judgment. We remanded the matter to the District Court. Upon remand the District Court issued a new order on January 24, 2006, requiring F&D to appear and show cause why judgment should not be entered against it. Eisenhart served this order to show cause on F&D’s counsel.
¶27 We recognize that Eisenhart had not named F&D as a party to the action. We further recognize that Eisenhart had never served F&D with a copy of the formal complaint. We also recognize, however, that the order to show cause issued by the District Court contained both a short and plain statement of Eisenhart’s claim showing that he was entitled to relief and a demand for judgment for the relief that he sought. M. R. Civ. P. 8(a) requires no more.
¶28 In reaching this conclusion, we recognize that Eisenhart never served F&D with a summons. Nevertheless, a district court may acquire jurisdiction over a person by means other than service of a summons and complaint. A district court also may acquire jurisdiction over a person through “voluntary appearance in an action by any person either personally, or through an attorney....” M. R. Civ. P. 4(B)(2). The Puffers’ counsel made a voluntary appearance on behalf of F&D on July 12,2005. We consider a “voluntary general appearance by the defendant [to be] a waiver of the issuance or service of the summons.” MacPheat v. Schauf, 291 Mont. 182, 185, 969 P.2d 265, 266 (1998) (internal citations and quotation marks omitted). F&D waived its right to be joined by service of summons when the Puffers’ counsel appeared on its behalf on July 12, 2005. The District Court acquired personal and subject matter jurisdiction over F&D when Eisenhart served the order to show cause on the same counsel who had appeared before the District Court on behalf of the Puffers and on behalf of F&D.
¶29 The District Court never clearly recognized F&D as a party, however, even after F&D’s voluntary appearance. The District Court alternatively referred to F&D as an “interested party” and, in the caption, as the “surety.” We do not recognize either an “interested party” or a “surety” as a participant in a conventional legal action. The District Court never referred to F&D as a party or a defendant in the substance of its decisions or in the case captions. The District Court never rendered a judgment against F&D. It merely confirmed the arbitration award against the Puffers on October 5, 2006, and determined, on May 10, 2006, that Eisenhart could proceed against F&D for the arbitration award in a de facto summary judgment. The District Court effectively bound F&D to satisfy the arbitration award on behalf of the Puffers as its surety, despite the fact that the comb never officially recognized F&D as a party to the action.
¶30 This case provides a model of how not to proceed to a judgment against a surety. In spite of these procedural anomalies, however, we conclude that the tortured process afforded F&D adequate notice and provided F&D with an opportunity to present its case. No material issues of fact exist. Section 71-3-551(3), MCA, authorizes a judgment against F&D as the Puffers’ surety. James Talcott Const., 261 Mont. at 266, 862 P.2d at 399; MacPheat, 291 Mont. at 185, 969 P.2d at 266. The District Court eventually determined that Eisenhart could proceed against the surety, F&D, for the judgment against the Puffers based upon an order that we interpret to be a de facto summary judgment. The District Court awarded attorney costs and fees and confirmed the arbitration award against the Puffers on October 5, 2006, pursuant to § 71-3-551(3), MCA. As a result, we affirm the District Court’s May 10, 2006, order that we interpret to constitute a de facto summary judgment. We emphasize, however, that Eisenhart, the Puffers, F&D, and the District Court acted in an unorthodox manner throughout this proceeding. We normally do not recognize categories of participants in litigation over whom a district court may assert jurisdictional authority beyond the parties.
¶31 Whether the District Court properly awarded attorney fees to Eisenhart.
¶32 The District Court awarded attorney fees and costs to Eisenhart relating to the arbitration award, Eisenhart’s efforts to enforce the arbitration award, Eisenhart’s efforts to foreclose on the lien, and Eisenhart’s efforts to win dismissal of a federal court action brought by the Puffers. The Puffers challenge the District Court’s award of fees and costs on the grounds that § 71-3-551, MCA, does not support the award. The Puffers further argue that our decision in Terra West v. Stu Henkel Realty, 2000 MT 43, 298 Mont. 344, 996 P.2d 866, allows an award of attorney fees absent statutory or contractual authority only “where bad faith or malicious behavior are involved....” Terra West, ¶ 40.
¶33 We review a district court’s order granting or denying attorney fees to determine whether the court abused its discretion. James Talcott Const. v. P&D, 2006 MT 188, ¶ 27, 333 Mont. 107, ¶ 27, 141 P.3d 1200, ¶ 27. Section 71-3-124, MCA, provides in pertinent part that in an action to foreclose a construction lien filed under § 71-3-551(1), MCA, “the court shall allow as costs the money paid and attorney fees incurred for filing and recording the lien and reasonable attorney fees in the district and supreme courts ... to each claimant whose lien is established....” The statute plainly provides for the fees and costs awarded to Eisenhart in the District Court as a successful lien claimant. We need not address the Puffers’ claim that Terra West precludes an award of fees and costs absent bad faith or malicious behavior in light of the statutory basis for the award.
¶34 Whether the District Court properly dismissed the Puffers’ counterclaims.
¶35 The Puffers contend that the District Court improperly denied their counterclaims. Whether a district court properly granted a motion to dismiss constitutes a conclusion of law that we review to determine if the court’s interpretation and application of the law is correct. Fleenor v. Darby School Dist., 2006 MT 31, ¶ 6, 331 Mont. 124, ¶ 6, 128 P.3d 1048, ¶ 6.
¶36 Eisenhart filed a motion to dismiss the Puffers’ counterclaims on June 30, 2005. The Puffers never responded to that motion. The District Court issued an order dismissing the Puffers’ counterclaims on October 5, 2005, pursuant to Montana Uniform District Court Rule 2(b). Rule 2(b) provides that an adverse party must file an answer brief in response to an opposing party’s motion within ten days or the party’s failure will be “deemed an admission that the motion is well taken.” The Puffers have alleged no factual or legal authority that would indicate why Eisenhart’s motion should not be considered well taken under Rule 2(b).
¶37 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, WARNER and RICE concur.
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JUSTICE WARNER
delivered the Opinion of the Court.
¶ 1 Robert R. Milligan appeals from a judgment in the Eighth Judicial District Court, Cascade County, committing him to the Montana Department of Corrections for five years, suspended, and requiring him to pay $55,404.65 in restitution. We affirm.
¶2 Milligan appeals the amount of back child support he was ordered to pay as restitution, arguing that when he entered his guilty plea he thought he would not have to pay more than approximately $45,000.
¶3 On December 3, 2003, the State charged Milligan with felony nonsupport in violation of § 45-5-621, MCA. The Information and affidavit in support of the motion for leave to file the Information alleged that between September 1, 1997, and September 30, 2003, Milligan had failed to provide $45,269.16 in financial support to his dependant minor children, that he knew he was legally obligated to provide support, and that he was capable of providing support. The Information alleged the cumulative amount of support owed by Milligan for the specified time period was more than $45,000.
¶4 Milligan pled not guilty to the charge. He later changed his plea to guilty pursuant to a plea bargain agreement. In exchange for his guilty plea, the State agreed to recommend a five-year commitment to the Department of Corrections with all the time suspended and reserved the right to recommend that Milligan be ordered to pay full restitution.
¶5 A change of plea hearing was held October 5, 2005. When questioned by the District Court, Milligan said that he knew he was required to pay support and he had not done so. Milligan also told the District Court that he understood that the court could require him to pay the support that he owed. The District Court took Milligan’s guilty plea under advisement and set a sentencing hearing for November 16, 2005.
¶6 A presentence investigation report (PSI) was prepared and filed with the District Court on October 25, 2005. A copy was served on Milligan. The PSI stated: “As of October 24,2005, the Defendant owes: $55,404.65 to: Child Support Enforcement Division[.]” Also attached to the PSI was a copy of the affidavit in support of the Information which said that Milligan owed $45,269.16.
¶7 At the sentencing hearing held approximately three weeks after he had received a copy of the PSI, Milligan acknowledged he had reviewed it. He brought to the court’s attention the fact that the PSI and the attached affidavit indicated different amounts owing in restitution. Milligan questioned whether $55,404.65 was the correct amount, in part because his children were both over the age of 18. The State responded that $55,404.65 was the amount of restitution owing at that time and that amount had been adjusted to account for the children reaching 18 years of age.
¶8 The District Court accepted the State’s recommendation and committed Milligan to the Department of Corrections for five years with all remaining time suspended. The court also ordered Milligan to pay $55,404.65 in back child support as restitution.
¶9 Milligan now appeals the District Court’s judgment fixing the amount he owes in restitution at $55,404.65. He states that he was misled into pleading guilty by the statements in the affidavit in support of the Information and the Information itself which told him he only owed approximately $45,000. Milligan does not challenge the calculation of the amount of restitution, nor does he ask that his guilty plea be withdrawn. He only demands that the restitution order be vacated.
¶10 The essence of Milligan’s claim is that he did not knowingly and intelligently plead guilty because he did not know he could be ordered to pay so much restitution. A defendant’s guilty plea must be voluntary, knowing, and intelligent. State v. Chase, 2006 MT 13, ¶ 13, 331 Mont. 1, ¶ 13, 127 P.3d 1038, ¶ 13; State v. Radi, 250 Mont. 155, 159, 818 P.2d 1203, 1206 (1991) (citing North Carolina v. Alford, 400 U.S. 25, 91 S. Ct. 160 (1970)). The question of a plea’s voluntariness is a mixed question of law and fact, and we review such questions de novo, determining whether the district court’s holding was correct. State v. Warclub, 2005 MT 149, ¶ 24, 327 Mont. 352, ¶ 24, 114 P.3d 254, ¶ 24. This Court deems a guilty plea involuntary where it appears that the defendant was laboring under such a strong inducement, fundamental mistake, or serious mental condition that the possibility exists that he may have pled guilty to a crime of which he is innocent. Chase, ¶ 15; State v. Ereth, 1998 MT 197, ¶ 27, 290 Mont. 294, ¶ 27, 964 P.2d 26, ¶ 27 (citations omitted); see also State v. Pelke, 143 Mont. 262, 271, 389 P.2d 164, 169 (1964).
¶11 Milligan says that when he pled guilty he was under the belief that he owed only about $45,000 in restitution because that was the amount in the Information, the affidavit in support of the motion to file the Information, and the amount discussed by the District Court at the change of plea hearing. Thus, he argues the District Court erred in imposing $55,404.65 in restitution because he had never been apprised that he owed more than $45,000.
¶12 The record reflects that throughout the proceedings Milligan was on notice that he was liable for “full restitution.” The Information stated that the $45,000 owing was for the time period of non-payment between September 1, 1997, and September 30, 2003. It cannot be gainsaid that the amount Milligan owed would increase if he persisted in not paying support. The binding plea agreement between Milligan and the State specifically says that the county attorney “may recommend full restitution....” At the change of plea hearing, although the District Court did make reference to the $45,000 figure, the judge specifically said to Milligan: “And the [cjourt can require you to pay the nonsupport that’s owing; do you understand that?” Milligan responded, “Yes, I understand that.”
¶13 Near the close of the change of plea hearing, the District Court told Milligan it intended to make him comply with the PSI. The PSI, which was filed on and served October 25,2005, three weeks before the sentencing hearing, indicated that as of October 24, Milligan owed $55,404.65. Milligan had ample notice prior to the sentencing hearing, not only that he might be subject to paying full restitution, but also that full restitution was going to be more than the $45,000 amount listed in the charging documents filed almost two years earlier.
¶14 The Ninth Circuit case, Phillips v. U.S., 679 F.2d 192 (9th Cir. 1982), Milligan relies upon, is inapposite. In Phillips, the defendant had signed a stipulation to pay a specific sum in restitution. The specific amount of restitution became, in effect, a basis of the plea bargain agreement. Here, neither Milligan nor the court specified the exact amount of restitution. To the contrary, the agreement required full restitution.
¶15 Milligan also relies on State v. Steffes, 269 Mont. 214, 887 P.2d 1196 (1994), for the proposition that because the Information indicated he owed $45,000, he was not properly notified that he might be subject to a greater amount of restitution. It is true that one of the primary functions of an information is to “ ‘reasonably apprise the person of the charges against him so that he may have an opportunity to prepare his defense.’ ” Steffes, 269 Mont. at 223, 887 P.2d at 1202 (quoting State v. Matt, 245 Mont. 208, 213, 799 P.2d 1085, 1088 (1990)). In this case, however, Milligan was reasonably apprised of the charges against him, and the very wording of the Information states that the $45,000 figure only pertains to the period of time from September 1, 1997, to September 30,2003. The Information and supporting affidavit notified Milligan that he owed approximately $45,000 in restitution for the specified time period. When the Information and affidavit are considered in conjunction with the plea agreement, the statements of the District Court at the change of plea hearing, and the PSI, Milligan was reasonably notified that he could be required to pay the full amount of restitution owed. Milligan was not laboring under a fundamental mistake when he plead guilty, and his plea was not involuntary.
¶16 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES MORRIS, NELSON and COTTER concur.
|
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 On July 24, 2006, the District Court of the Thirteenth Judicial District upheld an order of the Montana Human Rights Commission (HRC) which affirmed a Final Agency Decision of the Montana Department of Labor and Industry (Department). The Department’s final decision granted a judgment and damages to appellee Lisa Williams (Williams) based on a complaint for sexual discrimination which she filed against the appellant Joe Lowther Insurance Agency, Inc. (Corporation). The Corporation now appeals the District Court’s decision. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 Joe Lowther (Lowther) became the sole shareholder and owner of the Corporation in late 1995, after the death of his father, Joe Lowther, Sr. Joe Lowther, Sr. had formed the Corporation in Billings, Montana in 1969, and served as the district manager for Farmers Insurance Group (Farmers). Lowther assumed his father’s position when he took over the Corporation.
¶3 Lowther met Williams in 1997 or 1998 while he was a patient of Heights Eye Care Center in Billings. Williams worked there as a receptionist. Lowther was a divorced father of three children. Williams was married with two children. Lowther and Williams began a relationship, and sometime in 2001 Lowther approached Williams about coming to work for the Corporation. Initially she refused, but then accepted his offer in May of 2001. At the time, two other women worked in the office for Lowther. In August of 2001, Lowther and Williams entered into a consensual, sexual relationship. They concealed this affair from Williams’ spouse. By January of2002, while Williams and Lowther were still in the relationship, Lowther’s other employees had left, and Williams was Lowther’s sole employee.
¶4 In June 2002, Williams and her husband initiated proceedings to adopt a third child. In summer of 2002 Lowther began pressing Williams to divorce her husband. Through the end of 2002 and into early 2003, Williams resisted this pressuring, citing to the pending adoption of the child and the untimeliness of initiating a divorce during the holiday season. In May 2003 William s’ husband lost his job, and he decided to stay home with their children. For some reason, this infuriated Lowther and he felt betrayed. Lowther then increased his efforts to persuade Williams to leave her husband. However, these efforts were not successful, and in late May of 2003 Williams ceased having sexual relations with Lowther.
¶5 From this point, things went steadily downhill between Lowther and Williams. The two quarreled in public, and the work environment was tense and unbearable to Lowther because he and Williams were the only persons working at the Corporation. On June 20, 2003, Lowther met with Williams, telling her he could not “take” the situation between them anymore. Lowther told Williams that he needed her more personally than professionally. He offered her a severance package consisting of wages and a lump sum payment and gave her a choice: either resume an intimate relationship with him, or leave her job. At the time, Williams was making approximately $36,000 per year and needed the money to support her family. She was shocked and angry, and refused Lowther’s offer.
¶6 The next day, Williams telephoned Lowther and told him she had gone to an attorney, and that if he attempted to end her employment or reduce her wages he would be in “big trouble.” Lowther reiterated his previous offer, increasing the amount of the lump sum payment. Williams refused this offer as well.
¶7 On August 4, 2003, Lowther terminated Williams’ employment with the Corporation. After a lengthy discussion concerning the status of pending business matters for the Corporation, Lowther again told Williams that he needed her more personally than professionally, and again offered her a choice between resuming an intimate relationship with him and losing her job. Williams refused to leave her husband and resume her relationship with Lowther.
¶8 After she was fired, Williams went to executives for Farmers and complained that she had been wrongfully discharged. Williams told the executives that she had an “emotional” relationship with Lowther, but falsely denied that she had a “physical” relationship with him. Williams’ statements to the Farmers’ executives led them to believe that Lowther had pursued a sexual relationship with Williams and that she found his attentions unwelcome during the entire relationship.
¶9 The Farmers’ executives arranged a meeting with Lowther to discuss this matter. He lied about firing Williams, and falsely denied he had had a physical relationship with her. He did, however, admit to much of the rest of the relationship, including the exchange of notes and gifts, and his repeated statements that he needed her personally, but not professionally. Soon after this meeting on August 15, 2003, Farmers’ executives gave Lowther the option of resigning from his position as district manager for Farmers, or being fired. He chose the former course.
¶10 On November 21, 2003, Williams filed a complaint with the Department, alleging that the Corporation “discriminated against her on the basis of sex (female) when it subjected her to unwelcome quid pro quo sexual harassment culminating when [the Corporation] terminated her employment on or about August 4, 2003.” A contested case hearing on the matter was held in Billings on October 18 and 19, 2004, before a hearing examiner for the Department. On March 7, 2005, the hearing examiner issued a Final Agency Decision. On the basis of extensive findings of facts and conclusions of law, the examiner ruled in favor of Williams, concluding that the Corporation “discriminated against her because of sex.” The examiner ordered the Corporation to pay Williams $30,155.13 in damages.
¶11 Lowther appealed this ruling to the HRC. On May 26, 2005, the HRC affirmed the Department’s Final Agency Decision. In its order, the HRC held as follows:
In discussion, the Commission noted that, in the end, this is still an employment relationship. Joe Lowther was Lisa Williams supervisor and, as the employer, Lowther’s actions should not be excused simply because the office is smaller than others are. The employer failed to consider other options besides termination. Therefore, after careful and due consideration, the Commission concludes that the Final Agency Decision in this matter is supported by substantial evidence and complies with the essential requirements of the law. Admin R. Mont. 24.9.1717(2).
¶12 Lowther appealed the HRC’s ruling to the District Court, challenging the Department’s Final Agency Decision on several grounds. First, he argued that procedural irregularities in the proceedings prejudiced his substantial rights. Second, he maintained that although the hearing examiner had noted valid, nondiscriminatory reasons for Williams’ firing, he failed to make findings essential to a “mixed motive” analysis. Lowther argued that at best Williams proved a “mixed motive” case, and that the Department improperly awarded damages in violation of Admin. R. M. 24.9.611. Third, Lowther contended that Williams had failed to prove she was a member of a protected class, and further failed to prove that her termination was due to illegal discrimination, instead of simply the natural fallout from the end of her personal relationship with Lowther.
¶13 The District Court rejected Lowther’s challenges, and affirmed the rulings of the HRC and hearing examiner. The District Court concluded that Williams had made a prima facie showing of a case of quid pro quo sexual discrimination, and that a presumption that the termination was not based on sexual discrimination, because of the previous consensual relationship, did not apply. As stated by the District Court:
The timing of the termination is all-important to this case-a point Petitioner is intent on overlooking. As noted above and explained more fully in the Agency’s Findings of Fact, in late May 2003, the parties stopped having sex. Petitioner pressured Respondent to leave her husband. On June 20, 2003, after months of discussion and consternation regarding their future relationship, Petitioner offered Respondent a severance package and a choice. She could either resume an intimate relationship with Petitioner and leave her husband, or she could leave her job. Respondent did not want to resume her relationship with Petitioner or leave her job. On August 4, 2003, Petitioner fired Respondent.
The Agency concluded and this Court agrees that Petitioner’s actions constituted quid quo pro sexual harassment. His pressuring Respondent to resume their relationship amounted to unwelcomed sexual advances, requests, and conduct. He then made Respondent’s submission to the choice he offered explicitly a term of her employment. Her rejection of Petitioner’s choice was the reason for her dismissal.
¶14 The District Court, citing Lincoln Co. v. Sanders Co., 261 Mont. 344, 862 P.2d 1133 (1993) and § 2-4-702(l)(b), MCA, also rejected Lowther’s “mixed motive” argument, holding that because Lowther failed to raise this argument before the hearing examiner he could not raise it for judicial review before the District Court. Moreover, the District Court noted that while Lowther offered a variety of nondiscriminatory reasons for his decision to terminate Williams, this was done after Williams had made a prima facie case for sexual discrimination. Thus, the burden had already shifted to Lowther to prove non-discriminatory reasons for the termination. The hearing examiner found Lowther’s proffered reasons for the termination, including poor work performance and a job offer Williams allegedly had received with another company, to be pre-textual. In particular, the District Court pointed to the hearing examiner’s Finding of Fact No. 42, where the examiner found that even after Lowther had terminated Williams he offered her the choice of returning to her job if she resumed her intimate relationship with him, as undercutting any argument that Lowther fired Williams for non-discriminatory reasons. The District Court also rejected Lowther’s argument that the hearing examiner failed to make “specific and substantial findings of pretext before it rejected his legitimate, non-discriminatory reasons for Respondent’s termination.” The District Court pointed specifically to roughly fifteen Findings of Fact that provided substantial support for the hearing examiner’s decision.
¶15 Additionally, the District Court rejected Lowther’s claim that the hearing examiner prejudiced his rights by virtue of irregularities in the proceedings. At the hearing, Lowther attempted to offer expert testimony which would have explained why his decision to terminate Williams was commercially reasonable in light of a “love contract” which the parties had allegedly entered into. This “love contract” was supposedly an agreement between the parties that if the relationship ended, Williams would leave the Corporation. The hearing officer rejected this expert testimony as irrelevant, and noted that whether or not the parties entered into a “love contract” was a question of fact that did not require expert testimony to resolve. Lastly, the District Court rejected Lowther’s argument that the hearing examiner prejudiced his substantial rights by changing the legal basis for his decision. Lowther maintained the hearing examiner first announced that he would apply the standard found in Keppler v. Hinsdale Tp. High Sch. Dist. 86, 715 F. Supp. 862 (N.D. Ill. 1989), which Lowther claims mandates a presumption of non-discriminatory reasons for a termination when the parties had initially entered into a consensual sexual relationship, but then changed course and rejected the adoption of this presumption in his final decision. The District Court discounted this argument, finding that the hearing examiner never adopted the Keppler presumption, nor was he required to do so.
¶16 Lowther appeals the District Court’s decision to this Court and raises four issues. However, we decline to address three of these issues because he failed to either raise them below, or properly preserve them for appeal. Unified Indus., Inc. v. Easley, 1998 MT 145, ¶ 15, 289 Mont. 255, ¶ 15, 961 P.2d 100, ¶ 15 (“The general rule in Montana is that this Court will not address either an issue raised for the first time on appeal or a party’s change in legal theory.”). For instance, Lowther argues that the HRC erred in affirming the hearing examiner’s decision on the basis that the Corporation failed to pursue other options prior to terminating Williams. See ¶ 11. However, Lowther did not raise this issue before the District Court. Similarly, Lowther argues that Williams should be denied relief due to her failure to mitigate damages stemming from her termination. Again, Lowther failed to raise this issue before the District Court. Finally, Lowther argues that he has proved a “mixed motive” case, and that damages were improper under Admin. R. M. 24.9.611. Although he did raise this issue before the District Court, the District Court rejected it because he had not raised it before the hearing examiner. See ¶ 14. Lowther could have challenged this conclusion under § 2-4-702(l)(b), MCA, provided he could demonstrate that his failure to raise the argument before the agency was for “good cause.” However, Lowther has not presented this argument, or even alluded to this statute in his briefs. Thus, we decline to address the foregoing issues on appeal.
ISSUE
¶17 We state the remaining issue on appeal as follows: Did the District Court err in affirming the decisions of the HRC and the Department that the Corporation terminated Williams’employment based on illegal sexual discrimination?
STANDARD OF REVIEW
¶18 “A district court reviews an administrative decision in a contested case to determine whether the findings of fact are clearly erroneous and whether the agency correctly interpreted the law. We employ the same standards when reviewing a district court order affirming or reversing an administrative decision.” Ostergren v. Dept. of Revenue, 2004 MT 30, ¶ 11, 319 Mont. 405, ¶ 11, 85 P.3d 738, ¶ 11 (citation omitted). Moreover, “[pjarties must raise issues and present and develop evidence at the agency level. A district court has no authority to address new evidence on judicial review of agency determinations. As such, this Court is bound by the same limited scope of review.” Ostergren, ¶ 15.
DISCUSSION
¶ 19 Lowther argues that Williams failed to prove her termination was due to discrimination based on her sex, and that the Department, HRC, and the District Court, erred in concluding otherwise. In particular, Lowther argues that under Bryson v. Chi. St. U., 96 F.3d 912 (7th Cir. 1996), Williams was required to prove she is a member of a protected class, that she was subject to unwanted sexual advances, and that Lowther’s conduct was sexually motivated, but she has failed to do so. Lowther also claims that under Keppler, a presumption arises in this case that his reasons for terminating Williams were due to fallout from their relationship, and not based on sex discrimination, and that Williams has failed to rebut this presumption.
¶20 Williams argues that the District Court, HRC, and the Department correctly determined that she was terminated based on sexual discrimination. Williams argues that even under Keppler, which is arguably supportive of Lowther’s position, she has proven sex discrimination, because Keppler recognizes that “if an employer threatens retaliation to the employee if the employee fails to continue the relationship, there can be an action based on gender or sex.” Williams cites Finding of Fact No. 42 (See ¶ 14) as support for this conclusion, and points out that Lowther has not alleged this finding, or indeed any of the other findings, are clearly erroneous. Additionally, Williams refutes Lowther’s arguments that she was not subject to unwanted sexual advances. Williams maintains that Lowther’s repeated requests for her to return to the relationship were requests for sexual favors, thus constituting unwanted sexual advances. Finally, Williams argues the hearing examiner correctly concluded that the issue of Lowther’s motivation in resuming their intimate relationship was a question of fact, and that Lowther failed to prove before the examiner that he “was motivated to return to the former relationship for reasons other than sex.”
¶21 The Montana Human Rights Act (MHRA) bans employment discrimination because of sex. Section 49-2-303(l)(a), MCA. Quid pro
quo sexual discrimination claims are cognizable under the MHRA. Campbell v. Garden City Plumbing and Heating, 2004 MT 231, ¶ 15, 322 Mont. 434, ¶ 15, 97 P.2d 546, ¶ 15. Because the MHRA is closely-modeled after Title VII of the Civil Rights Act of 1964, we frequently refer to federal case law in construing the MHRA. Stringer-Altmaier v. Haffner, 2006 MT 129, ¶¶ 16-17, 332 Mont. 293, ¶¶ 16-17, 138 P.3d 419, ¶¶ 16-17.
¶22 To date, we have not explicitly defined the elements required to make a prima facie case for quid pro quo sex discrimination. The hearing examiner, recognizing this, cited to the definition for actionable sexual harassment as set forth in 29 C.F.R. § 1604.11, which was adopted pursuant to Admin. R. M. 24.9.1407. Harrison v. Chance, 244 Mont. 215, 220-221, 797 P.2d 200, 203-204 (1990).
Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment, (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual....
29 C.F.R. § 1604.11(a).
¶23 The hearing examiner further found that under federal law a quid pro quo sexual discrimination claim is properly considered as a “job detriment claim.” The hearing examiner cited to Priest v. Rotary, 634 F. Supp. 571 (N.D. Cal. 1986), where the court equated job detriment claims to situations where “tangible job benefits [are conditioned] on acquiescence to requests for sexual favors or other conduct of a sexual nature ....” Priest, 634 F. Supp. at 581. The hearing officer also rejected, as inconsistent with the MHRA, Lowther’s argument that in cases where the alleged sex discrimination follows the ending of a consensual sexual relationship, Keppler requires courts to adopt a presumption that the alleged harassment is fallout from the relationship, and shift the burden to the claimant to show that the conduct was due to sex discrimination. Keppler, 715 F. Supp. at 868-69.
¶24 Before the District Court, and on appeal, Lowther urges us to adopt the Keppler presumption as well as a five-factor test from Bryson which requires claimants to make the following prima facie showing in quid pro quo sex discrimination cases:
In order to prove such a claim, many courts of appeal use a five-part test, asking whether the plaintiff has shown (1) that she or he is a member of a protected group, (2) the sexual advances were unwelcome, (3) the harassment was sexually motivated, (4) the employee’s reaction to the supervisor’s advances affected a tangible aspect of her employment, and (5) respondeat superior has been established.
Bryson, 96 F.3d at 915.
¶25 The District Court declined to adopt this five-factor test, concluding that “the elements found in the federal Guidelines are the proper method to determine whether an employer has committed quid pro quo sexual harassment. If a party can satisfy the terms found therein, that is sufficient to establish a prima facie case of quid pro quo sexual harassment. There is no need to employ an unnecessarily complicated and overly formalistic test.” Similarly, the District Court rejected the adoption of the Keppler presumption in Montana, noting that its holding has been criticized by other courts. E.g., Babcock v. Frank, 729 F. Supp. 279 (S.D.N.Y. 1990). While the District Court acknowledged that a previous consensual relationship may play a role in determining whether sex discrimination has occurred in some cases, the District Court found such a factor inapplicable to the present controversy. As stated by the District Court:
[WJhen, as in the instant case, the affair is over and the employer threatens a penalty if the employee will not continue the physical relationship, the employer “commits illegal sex-based discrimination cognizable” under a quid pro quo claim. Babcock, 729 F. Supp. at 288.
¶26 Accordingly, the District Court focused its analysis on whether the hearing examiner’s findings supported Williams’ claims of sex discrimination. The District Court concluded that they did, see ¶ 13, and rejected Lowther’s attempts to rebut this showing “by characterizing his efforts to win Respondent back as motivated by his desire to continue their romantic relationship and not by a desire for sexual intercourse with an employee.”
¶27 We affirm the District Court’s conclusion. Lowther has provided no persuasive reason to adopt the multi-factor Bryson test, or the Keppler presumption. Instead, we will continue looking to both our body of case law and the federal guidelines in resolving sex discrimination claims. Harrison, 244 Mont. at 220-221, 797 P.2d at 203-04. As noted by the district court in Savino v. C.P. Hall Co., 988 F. Supp. 1171 (N.D. Ill. 1997), “[on] the quid pro quo question ... the [Supreme] Court [has] noted that the E.E.O.C.’s Guidelines on Sexual Harassment ‘constitute a body of experience and informed judgment to which courts and litigants may properly resort for guidance.’ ” Savino, 988 F. Supp. at 1181 (quoting Meritor Savings Bank, FSB, v. Vinson, 477 U.S. 57, 65, 106 S. Ct. 2399, 2404 (1986)).
¶28 As Williams notes, Lowther does not challenge as clearly erroneous the hearing examiner’s Finding of Fact No. 42 that even after he terminated her employment he offered Williams the choice of having her job back if she resumed the intimate relationship. The assertion by Lowther that this overture was not sexually motivated strains the bounds of credulity. This finding, in light of Lowther’s repeated efforts to condition Williams’ employment on continuation of the intimate relationship, demonstrates that “submission to or rejection of such conduct by [Williams was] used as the basis for employment decisions affecting [her] ....’’Harrison, 244 Mont. at 220-221, 797 P.2d at 203-04 (citing 29 C.F.R. § 1604.11(a)). Thus, we affirm the District Court.
CONCLUSION
¶29 We affirm the District Court’s decision upholding the award of damages by the Department and HRC to Williams due to illegal sex discrimination by Lowther and the Corporation.
CHIEF JUSTICE GRAY, JUSTICES WARNER and MORRIS concur.
“Mixed motive” cases are situations where there may be other, nondiscriminatory reasons for a decision to terminate. E.g., Laudert v. Richland Co. Sheriff’s Dept., 2000 MT 218, 301 Mont. 114, 7 P.3d 386.
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JUSTICE COTTER
delivered the Opinion of the Court.
¶1 Appellant Jerry Nick Ruggirello appeals the denial of his motion to suppress by the District Court of the Twenty-First Judicial District, Ravalli County. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
¶2 As far back as July of 2002, the Ravalli County Sheriffs Office (RCSO) had received information concerning Ruggirello’s involvement in the purchasing of illegal drugs. In January 2005 Detective Jase Basnaw of the RCSO received information from a reliable confidential informant that Ruggirello was distributing large amounts of methamphetamine in Spokane, Washington. Subsequently, a confidential informant, who had previously arranged controlled purchases of illegal drugs for the RCSO, agreed to participate in a controlled buy from Ruggirello in Montana.
¶3 On April 26, 2005, Detective Basnaw received a call from Agent Mike Heaney of the Montana Department of Justice, Division of Criminal Information in Butte, Montana, indicating that Ruggirello and another suspected drug dealer, Rusty O’Connell, were going to transport large quantities of methamphetamine from Spokane for delivery in Missoula, Ravalli, and Silver Bow counties. The confidential informant who provided Agent Heaney this information indicated that O’Connell and Ruggirello would be traveling to Montana in O’Connell’s red Nissan pickup. Agent Heaney obtained the truck’s license number and forwarded this information to Detective Basnaw.
¶4 On April 27,2005, Agent Heaney informed Detective Basnaw that O’Connell and Ruggirello were en route to Montana and would arrive in Missoula, Montana around 9:00 p.m. From there, they would travel to Hamilton, Montana and then Butte. Agent Heaney’s confidential informant indicated that Ruggirello and O’Connell were in possession of approximately one half-pound of methamphetamine. Detective Basnaw subsequently activated patrol deputies to search for O’Connell’s red pickup truck on Highway 93 during the time that O’Connell and Ruggirello were to arrive in Montana. However, the RCSO dispatch center inadvertently broadcast this information over the radio, and it was picked up by O’Connell’s mother who informed O’Connell that law enforcement officials were looking for him. As a result, O’Connell and Ruggirello were able to avoid being intercepted by law enforcement officials that night.
¶5 The next day Detective Basnaw learned that O’Connell had been tipped off by his mother the previous evening, and was in hiding with Ruggirello in the environs of Hamilton. Detective Basnaw searched for Ruggirello and O’Connell, but was unable to locate them. Then, on Friday, April 29, 2005, Detective Basnaw received a call from a concerned citizen about possible drug activity at the Court Yard Circle Apartments in Corvallis, Montana. The concerned citizen stated that two “suspicious looking males” were visiting the apartment of a woman named Brandy Bay. Detective Basnaw knew that Bay had recently been evicted from a SAFE housing complex for drug use, and was also aware of allegations that Bay had used drugs in the presence of her toddler. The concerned citizen provided the license plate numbers of the red pickup these individuals were driving, which matched the license number of O’Connell’s pickup. Thus, the information available to Detective Basnaw confirmed that the description of the individuals from the concerned citizen matched the description of O’Connell and Ruggirello.
¶6 Detective Basnaw and RCSO Detective Dave Potter immediately went to the Court Yard Circle Apartments in an unmarked truck. While heading there, they had another conversation with the concerned citizen who had been observing the two men with Bay. This citizen informed Detective Basnaw that he saw Bay put something into a storage area outside of her apartment. Once at the apartments, Detectives Basnaw and Potter began surveillance of Bay’s apartment and called for backup. They observed two individuals on the balcony of Bay’s second-story apartment who appeared to be watching them. One of these individuals immediately went inside the apartment, and within approximately a minute, O’Connell and another woman left the apartment in O’Connell’s red pickup truck. As they passed by the unmarked truck, they appeared to watch Detectives Basnaw and Potter very closely. Detective Potter directed another officer to follow O’Connell, and he was later apprehended.
¶7 While Detectives Basnaw and Potter continued to observe Bay’s apartment, Detective Basnaw received a call from Agent Heaney in Butte. Agent Heaney informed Basnaw that Ruggirello had just called one of Heaney’s confidential informants in Butte and told him that police officers were watching him and asked the informant to come down from Butte and help Ruggirello get rid of the drugs.
¶8 The detectives soon saw Bay emerge from the apartment with her 18 month-old daughter. She walked over to her minivan, retrieved a bag, and returned to her apartment, all the while watching Detectives Basnaw and Potter. The two detectives then discussed whether they should have detained Bay prior to her re-entry into her apartment with her daughter, in the event they would have to conduct a forcible entry of the apartment. During this time, Detective Basnaw placed a call to the Ravalli County Attorney and discussed the issue of Bay’s daughter’s safety in the event of a forcible entry of the apartment, and the possibility that Ruggirello could destroy evidence of illegal drugs before a valid search warrant could be obtained. As Detective Basnaw later testified, it was estimated that the procurement of a valid search warrant would have taken between four and seven hours.
¶9 When Bay came out a second time with her daughter, the detectives detained her along with another male neighbor. Detective Basnaw testified that he had been watching Bay’s apartment in the unmarked truck for approximately ten to twenty minutes before he detained Bay. Shortly thereafter, additional law enforcement officers arrived on the scene. According to Detective Basnaw, it took approximately fifteen minutes for backup to arrive from the time he initially called for them. After backup arrived, three law enforcement officers went up to Bay’s apartment, knocked on the door, and identified themselves. After approximately thirty seconds had passed and they had received no response, the officers kicked in the door of the apartment and entered.
¶10 Upon entering, officers found Ruggirello and another woman in the apartment. Ruggirello was handcuffed, patted down and searched, and officers found approximately $1,500 in his wallet. Detective Basnaw observed that Ruggirello’s pupils were pinpointed and that he was sweating. Based on his experience and training as a police officer, Detective Basnaw surmised that Ruggirello was under the influence of methamphetamines.
¶11 Ruggirello was subsequently taken to the Ravalli County Detention Center for booking. Officers then taped off the apartment, and left an officer to guard it while they applied for a warrant to search Bay’s apartment. Upon obtaining a valid search warrant and conducting a search of the apartment, officers found approximately three and a half grams of methamphetamine packaged for sale in half gram and one gram packets. The subsequent search of the red Nissan pickup pursuant to O’Connell’s arrest turned up approximately seven grams of methamphetamine.
¶12 Ruggirello was subsequently charged by Information with felony Conspiracy to Commit Criminal Distribution of Dangerous Drugs under § 45-4-102, MCA; felony Criminal Possession with Intent to Distribute under § 45-9-103, MCA; felony Criminal Endangerment under § 45-5-207, MCA; and misdemeanor Criminal Possession of Drug Paraphernalia under § 45-10-103, MCA. Ruggirello plead not guilty to all charges. Subsequently, he filed a motion to suppress, arguing that probable cause and exigent circumstances justifying the warrantless entry of Bay’s apartment did not exist, and that the search violated his right to be free from unreasonable searches and seizures under the Fourth Amendment to the U.S. Constitution, and Article II, Section 11 of the Montana Constitution. Ruggirello asked the District Court to suppress any evidence obtained as a result of the forcible entry and warrantless search of Bay’s apartment, as well as any evidence and statements obtained from Ruggirello and other individuals in the apartment which were later used in the application for the search warrant.
¶13 The District Court held a hearing on Ruggirello’s motion, and ultimately denied it. The District Court concluded that exigent circumstances and probable cause existed to justify the forcible entry and initial warrantless search of Bay’s apartment. After this ruling, Ruggirello withdrew his not guilty pleas, and plead guilty to one count of Criminal Possession with Intent to Distribute under § 45-9-103, MCA. Ruggirello was sentenced to fifteen years with the Department of Corrections, with ten years suspended. Ruggirello now timely appeals the denial of his motion to suppress by the District Court.
ISSUE
¶14 We state the sole issue on appeal as follows: Did the District Court err in concluding that exigent circumstances justified the forcible entry of Bay’s apartment, thus denying Ruggirello’s motion to suppress?
STANDARD OF REVIEW
¶15 ‘We review a district court’s ruling on a criminal defendant’s motion to suppress evidence to determine whether the court’s findings of fact are clearly erroneous and whether the court correctly applied those findings as a matter of law. A court’s findings of fact are clearly erroneous if they are not supported by substantial credible evidence, the court has misapprehended the effect of the evidence, or our review of the record convinces us that a mistake has been committed.” State v. Vaughn, 2007 MT 164, ¶ 15, 338 Mont. 97, ¶ 15, 164 P.3d 873, ¶ 15 (quotation and citations omitted).
DISCUSSION
¶16 Did the District Court err in concluding that exigent circumstances justified the forcible entry of Bay’s apartment, thus denying Ruggirello’s motion to suppress?
¶17 The Fourth Amendment to the U.S. Constitution and Article II, Section 11 of the Montana Constitution both protect citizens against unreasonable searches and seizures, and require warrants issued upon probable cause prior to a search by law enforcement officials. Warrantless searches are considered per se unreasonable unless an exception to the warrant requirement applies. State v. Case, 2007 MT 161, ¶ 19, 338 Mont. 87, ¶ 19, 162 P.3d 849, ¶ 19. An exception justifying a warrantless search is the existence of exigent circumstances and probable cause. State v. Stone, 2004 MT 151, ¶ 18, 321 Mont. 489, ¶ 18, 92 P.3d 1178, ¶ 18. In Stone, we described the circumstances under which exigent circumstances and probable cause permit a warrantless search:
Exigent circumstances exist if the situation at hand would cause a reasonable person to believe that prompt action is necessary to prevent physical harm to an officer or other person, the destruction of relevant evidence, the escape of a suspect, or some other consequence improperly frustrating law enforcement efforts. Probable cause exists if the facts and circumstances within the officer’s personal knowledge, or imparted to the officer by a reliable source, are sufficient to warrant a reasonable person to believe that the suspect has committed an offense.
Stone, ¶ 18 (citations and quotation omitted).
¶18 “The State bears the heavy burden of showing the existence of exigent circumstances and can meet that burden only by demonstrating specific and articulable facts.” State v. Logan, 2002 MT 206, ¶ 17, 311 Mont. 239, ¶ 17, 53 P.3d 1285, ¶ 17 (quotation omitted).
¶19 The District Court found the State met its heavy burden in this case and proved the existence of both probable cause and exigent circumstances justifying the initial warrantless search of Bay’s apartment. The District Court found that testimony from the suppression hearing clearly established the following: (1) that O’Connell and Ruggirello were identified as being at Bay’s apartment; (2) that Ruggirello knew officers were outside of his apartment; (3) that Ruggirello had called a third party to come and help him get rid of the drugs; and (4) that the amount of methamphetamine Ruggirello was alleged to be in possession of-one half-pound-could have been destroyed by flushing it down the toilet well before Detective Basnaw could obtain a valid search warrant. These facts, combined with other information provided by confidential informants, showed that officers had probable cause to believe O’Connell and Ruggirello were in possession of illegal drugs. They also provided specific and articulable facts reasonably indicating exigent circumstances, insofar as the half- pound of methamphetamine Ruggirello allegedly possessed was in danger of being destroyed. In reaching this conclusion, the District Court distinguished the facts of this case from situations where exigent circumstances were found not to exist, including Logan, State v. Anyan, 2004 MT 395, 325 Mont. 245, 104 P.3d 511, United States v. George, 883 F.2d 1407 (9th Cir. 1989), and United States v. Tavares, 223 F.3d 911 (8th Cir. 2000).
¶20 On appeal, Ruggirello does not challenge the existence of probable cause, but instead argues only that the District Court erred in concluding exigent circumstances were present which justified the initial warrantless entry into Bay’s apartment. Ruggirello asserts that “Basnaw had no specific facts leading him to believe that individuals in the apartment where Ruggirello was located were in the process of destroying or concealing the half-pound bag of methamphetamine supposedly in the apartment.” Ruggirello acknowledges that the information available to Detective Basnaw could lead him to reasonably infer that Ruggirello had drugs in the apartment, but contends Detective Basnaw did not have any information indicating an imminent need for a warrantless search. Ruggirello asserts that “Mailing someone who is over 120 miles away to come to the apartment to take control of the drugs is far from an imminent threat that the drugs will be destroyed.” While Detective Basnaw may have believed it was possible that Ruggirello would destroy the drugs, Ruggirello argues that he did not have a reasonable belief that the destruction of drug evidence was imminent. Ruggirello maintains this case is analogous to State v. McBride, 1999 MT 127, 294 Mont. 461, 982 P.2d 453, and that Detective Basnaw had ample time to obtain a search warrant; thus, no exigent circumstances were present.
¶21 The State urges us to affirm the District Court. The State maintains that Detective Basnaw had “a reasonable belief that Ruggirello would destroy, conceal, or remove the drugs before Basnaw could reasonably obtain a search warrant.” The State asserts that Detective Basnaw did not need to be certain that Ruggirello was destroying or concealing illegal drugs, but need only have a reasonable belief that prompt action was necessary to prevent the destruction of relevant evidence. The State maintains that Stone supports this assertion. Additionally, the State asserts that the District Court properly distinguished Logan, Anyan, and George, and that its order denying the motion to suppress should be affirmed.
¶22 We agree with the State and affirm the District Court. In the first instance, the State is correct to note that an officer does not need to be certain that evidence is being destroyed in order for exigent circumstances to exist. “Exigent circumstances exist if the situation at hand would cause a reasonable person to believe that prompt action is necessary to prevent... the destruction of relevant evidence ... or some other consequence improperly frustrating law enforcement efforts.” Stone, ¶ 18. Here, Detective Basnaw had specific and articulable facts which would lead a reasonable person to believe that prompt action was necessary to prevent the destruction of the half-pound of methamphetamine Ruggirello allegedly possessed. Based on information from confidential informants, Detective Basnaw knew that Ruggirello was coming to Montana with methamphetamine, that Ruggirello was aware that police officers were watching him, and that he had asked a third party to help him get rid of the drugs. Detective Basnaw was also given information that the amount of the methamphetamine was one half-pound, and knew that such an amount could be flushed down the toilet in a short period of time. Moreover, Basnaw had witnessed O’Connell and another occupant of the apartment already leave the scene, and their behavior indicated they were aware that police were watching them.
¶23 These facts, taken together, would lead a reasonable person in Detective Basnaw’s position “to believe that prompt action [was] necessary” to prevent Ruggirello from destroying the methamphetamine he allegedly possessed. Stone, ¶ 18. The fact that officers never recovered a full half-pound of methamphetamine, or never witnessed Ruggirello actually destroying drugs, does not alter our conclusion that Basnaw reasonably believed exigent circumstances existed. The question is not whether Basnaw was certain that Ruggirello had a half-pound of methamphetamine and that he was destroying it, but rather whether it was reasonable under the circumstances for Detective Basnaw to believe that Ruggirello had illegal drugs and that prompt action was necessary to prevent him from destroying them. Ruggirello does not challenge on appeal the reliability of the information provided by the confidential informants; therefore, it was indisputably proper for Detective Basnaw to take account of this information in formulating his belief that prompt action was necessary and that exigent circumstances existed.
¶24 Additionally, the District Court correctly distinguished the facts of this case from Logan, Anyan, George, and Tavares. In Logan, we found no exigent circumstances justified a warrantless search pursuant to a traffic stop, because the officer in that case actually testified that nothing prevented him from obtaining a search warrant prior to conducting a search of the vehicle. Logan, ¶¶ 19-20. Here, on the contrary, Detective Basnaw’s testimony indicated that Ruggirello was aware of his presence, had indicated to a confidential informant that he needed to get rid of the drugs, and could have done so in a relatively short time. Similarly, the District Court properly distinguished Anyan and Tavares where exigent circumstances justifying a no-knock entry did not exist, because officers in those cases could not have reasonably believed that evidence of illegal drugs could be quickly destroyed. Anyan, ¶¶ 60, 62 (meth lab could not be destroyed in a matter of five to ten seconds, thus officers had to comply with knock and announce rule); Tavares, 223 F.3d at 916-17 (no exigent circumstances were present justifying a no-knock entry because five pounds of methamphetamine could not be destroyed quickly). Additionally, the District Court correctly distinguished George because the record in that case gave no indication that the officers reasonably believed the suspects were aware of their presence, or of their imminent capture by law enforcement officials; thus, no exigent circumstances existed justifying a warrantless arrest of the suspect in his apartment. George, 883 F.2d at 1413-15. Here, to the contrary, “officers watching Bay’s apartment knew that the suspects inside were aware of police presence outside and concerned about being apprehended with illegal drugs.”
¶25 Furthermore, we agree with the State that Detective Basnaw did not have adequate time to secure a search warrant. In McBride, we found that no exigent circumstances justifying a warrantless search of a house were present, because officers had time to secure a search warrant and there was no indication that anyone inside the house was in danger or about to flee. McBride, ¶¶ 16-18. Here, however, Detective Basnaw had already witnessed O’Connell flee the scene, knew that Ruggirello was aware of his presence, and knew that he had contacted a third party to help him get rid of the drugs. This, combined with the fact that the procurement of a search warrant would take from four to seven hours, reasonably indicated the presence of exigent circumstances.
CONCLUSION
¶26 For these reasons, we affirm the denial of Ruggirello’s motion to suppress by the District Court.
CHIEF JUSTICE GRAY, JUSTICES NELSON, LEAPHART and MORRIS concur.
Ruggirello also argued before the District Court that officers violated his Miranda rights in the course of his arrest. Ruggirello has not appealed the denial of his Mzrareda-related arguments to this Court.
|
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JUSTICE WARNER
delivered the Opinion of the Court.
¶1 Homer Holland appeals from a judgment entered in the Twenty-First Judicial District, Ravalli County, deferring imposition of sentence for three years on the condition, inter alia, that he repay the amount of $2,922 as costs and related fees expended in his defense by his court-appointed counsel.
¶2 The sole issue on appeal is whether the District Court erred by requiring Holland to pay the costs of an investigator and related expenses, approved by the District Court and expended by his court-appointed counsel.
¶3 On October 31, 2005, the State charged Holland with two counts of felony criminal endangerment, in violation of § 45-5-207, MCA, and one count of driving under the influence of alcohol, in violation of § 61-8-401, MCA. Holland was indigent and the District Court appointed counsel to defend him at the expense of the State of Montana. His appointed counsel moved the District Court for its approval to expend State funds to investigate the case and to retain an expert witness. The District Court granted the motion and approved up to $3,000 in defense expenditures. Defense counsel ultimately spent $2,922 on investigative and related expenses.
¶4 Ultimately, Holland pled no contest to the criminal endangerment charges and guilty to driving under the influence of alcohol. On April 27, 2006, the District Court sentenced Holland, deferring the imposition of sentence for three years. As a condition of the deferred sentence, the judge required Holland to repay the $2,922 expended by defense counsel, pursuant to § 46-18-201, MCA, and § 46-8-113, MCA (2003). Holland does not contest the finding of the District Court that he is able to pay. He appeals the requirement that he repay defense costs, asserting that the statutes do not authorize the District Court to impose such a condition on his deferred sentence.
¶5 We review a sentence for legality, examining only whether it is within the statutory parameters. State v. Hirt, 2005 MT 285, ¶ 11, 329 Mont. 267, ¶ 11, 124 P.3d 147, ¶ 11.
¶6 Section 46-18-201(3)(b), MCA, permits a sentencing judge to impose a sentence that includes “payment of costs as provided in 46- 18-232 or payment of costs of court-appointed counsel as provided in 46-8-113.”
¶7 Section 46-18-232, MCA, is not involved in this appeal as it only concerns costs of prosecution that a defendant may be ordered to pay. Section 46-8-113, MCA, provides in pertinent part: “[t]he 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 [this title].” Section 46-8-113(1), MCA.
¶8 We have held that § 46-8-113(1) includes all costs related to a criminal defense. State v. Hubbel, 2001 MT 31, ¶ 33, 304 Mont. 184, ¶ 33, 20 P.3d 111, ¶ 33, overruled on other grounds, State v. Hendricks, 2003 MT 223, ¶ 11, 317 Mont. 177, ¶ 11, 75 P.3d 1268, ¶ 11. As we noted in Hubbel, the statute contains no limitation on which defense costs a judge may require a defendant to pay. Hubbel, ¶ 33. The District Court had the statutory authority to condition Holland’s deferred sentence on his repayment of approved costs the State incurred in his defense.
¶9 The District Court did not err when it required Holland to repay $2,922 as a condition of his deferred sentence.
¶10 Affirmed.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, MORRIS and RICE concur.
In 2005, the legislature amended § 46-8-113, MCA, but delayed the effective date until July 1, 2006. Because Holland committed the offense and was sentenced before this date, the amendment does not apply to him.
|
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 C.B. II (hereinafter “C.B.”), the father of T.S.B., appeals from the order of the District Court for the Eighth Judicial District, Cascade County, terminating his parental rights to T.S.B. We affirm.
¶2 The issues on appeal are as follows:
1. Did the District Court’s termination of C.B.’s parental rights to T.S.B., pursuant to §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, violate C.B.’s constitutional right to due process?
2. Did the District Court abuse its discretion in terminating C.B.’s parental rights to T.S.B?
FACTUAL AND PROCEDURAL BACKGROUND
¶3 C.B. and J.B. are the parents of seven children: C.B. Ill, A.B., C.B. V, T.B., K.J.B., T.S.B., and a stillborn son, C.B. IV. J.B., the mother, suffers from a disorder known as velocardiofacial syndrome (VCFS). VCFS can cause a number of conditions including heart defects, poor muscle tone, cleft palate, a curved esophagus, bowel problems, immune deficiency, and impaired vision and hearing. VCFS can also manifest itself in the form of cognitive problems, including learning difficulties. J.B. is cognitively impaired and of limited intellectual capacity. All of C.B. and J.B.’s children, including T.S.B., were born with VCFS.
¶4 T.S.B. was born on February 21,2007. On February 24, 2007, the Department of Public Health and Human Services (DPHHS) placed T.S.B. into protective custody with a foster care provider. On February 26,2007, Deputy Cascade County Attorney Sarah Corbally, on behalf of the State and DPHHS, filed a Petition for Emergency Protective Services, Determination that Reasonable Efforts are not Required, Termination of Parental Rights, and Permanent Legal Custody with the District Court.
¶5 C.B. and J.B. previously had their parental rights terminated with respect to their five other living children: C.B. Ill on October 2, 1996; C.B. V and A.B. on January 14,2000; T.B. on December 4,2003; and K.J.B. on December 19, 2006. These terminations were grounded in C.B.’s and J.B.’s inability to safely parent. We recently affirmed the termination of C.B.’s and J.B.’s parental rights as to K. J.B. in In re 2007 MT 216, 339 Mont. 28, 168 P.3d 629, and conducted an extensive review of the circumstances that led to that termination, as well as the termination of C.B.’s and J.B.’s parental rights with respect to the other four children.
¶6 The District Court issued an order on February 27, 2007, determining that the State established probable cause to believe that T.S.B. was a youth in need of care, and granting DPHHS emergency protective services of T.S.B. on the ground that letting T.S.B. remain with her parents would be contrary to her welfare, based on the involuntary termination of C.B.’s and J.B.’s parental rights with respect to T.S.B.’s five siblings due to inability to safely parent. The District Court also ordered a show cause hearing, which it eventually set for April 19, 2007. The court reserved, for the show cause hearing, the State’s request for a finding that reasonable efforts for reunification of T.S.B. with her parents not be required, as well as the State’s request for termination of parental rights and permanent legal custody of T.S.B. The District Court subsequently appointed a guardian ad litem for T.S.B.
¶7 C.B. filed a Motion to Dismiss and for Hearing on this Motion, arguing that the State’s petition was unconstitutional for violating the Due Process Clause of the Montana and United States Constitutions. C.B. argued that §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, violated due process by impermissibly shifting the burden of proof onto the parents.
¶8 The District Court held the show cause hearing on April 19,2007, but first addressed C.B.’s motion to dismiss. The District Court denied his motion on the ground that §§ 41-3-423(2)(e) and 41-3-609(l)(d), MCA, are constitutional, as the statutes still afforded C.B. and J.B. due process and fundamental fairness by “appointing Counsel, giving them the required notice, an opportunity to be heard, and an opportunity to cross-examine any of the State’s witnesses.”
¶9 The court then addressed the State’s petition, and heard testimony from five witnesses for the State: Sahrita Holum; Lee Smith; Dr. Donna Zook, Ph.D.; Dr. Jennifer Hall, M.D.; and Jana Hayes.
¶10 Sahrita Holum, a DPHHS social worker, testified that DPHHS removed T.S.B. from her parents’ custody due to a high risk of physical neglect based upon the five previous terminations. She remarked that she was concerned about how J.B. and C.B. handled the child and stated that J.B. seemed to rely on C.B. for redirection. Holum also explained that her biggest concern was that the parents never once contacted her to check and see how T.S.B. was doing.
¶11 Dr. Donna Zook, a licensed psychologist who evaluated both J.B. and C.B. on several occasions in 2006 after the birth of K. J.B., testified that C.B.’s ability to parent was “quite inadequate” and that his parenting prognosis was extremely poor. Dr. Zook stated that C.B. “presented both in the interview and on the objective instruments that he is the perfect parent, that he has absolutely no problems in life. He has no personality issues, no problems that create stress or distress in his life ...” Dr. Zook also remarked that C.B. tended to “lack emotional expression or emotional connectedness with his child” and exclusively referred to K.J.B. as “my kid.” Dr. Zook went on to state that C.B.’s “depiction of his life just totally defies the reality of his situation, not having problems, not having any kind of issue, personal issues that need fixing, treatment, whatever.” Dr. Zook concluded that these problems would make it difficult for C.B. to recognize, let alone meet, the developmental needs of a child. Dr. Zook seriously doubted whether C.B.’s problems could be remedied, given past failures with parenting services. Dr. Zook opined that even if C.B.’s parenting problems could be remedied, it would take an extremely long time to accomplish.
¶12 Dr. Zook stated that J.B. “believes that she is without problems, that she is a perfect person, she doesn’t have any issues, doesn’t have anything disturbing or distressful in her life.” Dr. Zook also stated that J.B. tended to defer to C.B. and believed his parenting to be perfect. Dr. Zook further explained that J.B. “also expects the child to satisfy her needs. [C.B.] expects an ideal child, and [J.B.] expects the child to be ideal to [C.B.] ...” and that “[t]he child is there to support and to gratify [J.B.’s] needs.” Dr. Zook believed that this behavior would place a child at risk of abuse and neglect. She ultimately concluded that she did not believe J.B. could benefit from services and be able to safely parent in the reasonable future. She expressed, as to both C.B. and J.B., that it would take a complete rebuilding of their personalities to change their parenting.
¶13 Dr. Jennifer Hall, T.S.B.’s pediatrician, testified that T.S.B. suffered from YCFS, had feeding issues due to poor muscle tone in her throat, and that she had a heart defect. Dr. Hall stated that T.S.B. was at risk for learning problems, language delay, and behavioral problems, and that she will require on-going specialized treatment. Dr. Hall stated that as a result of these conditions, T.S.B. will require a higher level of care and that she will suffer from these problems for her entire life. On cross-examination, Dr. Hall stated that C.B. did seem interested in parenting T.S.B., and that he expected to be allowed to do so. She also stated that C.B. seemed to have affection and love for T.S.B. and wanted to care for her. Nonetheless, Dr. Hall also testified that she was concerned with C.B.’s and J.B.’s ability to feed T.S.B. and that it was uncommon for parents to have that much difficulty with feeding their baby.
¶14 Although these witnesses were crossed-examined, the parents did not call any witnesses of their own. The court also admitted into evidence the previous orders regarding termination of parental rights for C.B. and J.B.’s five other children.
¶15 Based on the evidence and testimony presented, the District Court concluded that DPHHS was not required to make reasonable efforts to reunify T.S.B. with her parents, that clear and convincing evidence showed that C.B. and J.B. were unable to safely and adequately care for T.S.B. within a reasonable amount of time, that clear and convincing evidence showed that continuation of the parent-child legal relationship between T.S.B. and her parents would likely result in ongoing abuse and/or neglect, and that the best interest of T.S.B.’s physical, mental, and emotion condition would be served by terminating the parent-child legal relationship with C.B. and J.B. Accordingly, the District Court terminated the parent-child relationship, and granted permanent legal custody to DPHHS.
¶16 The District Court entered its order on April 26, 2007. The District Court held a permanency plan hearing on May 17,2007, and, that same day, entered an order approving the permanency plan for T.S.B. This appeal followed.
STANDARD OF REVIEW
¶17 We review a district court’s decision to terminate an individual’s parental rights to determine whether the lower court abused its discretion. In re A.S., 2006 MT 281, ¶ 24, 334 Mont. 280, ¶ 24, 146 P.3d 778, ¶ 24. Our review for abuse of discretion is whether the trial court acted arbitrarily, without employment of conscientious judgment, or exceeded the bounds of reason resulting in substantial injustice. In re A.S., ¶ 24.
¶18 However, because a parent’s right to the care and custody of a child is a fundamental liberty interest, the right must be protected by fundamentally fair procedures. In re D.B., 2007 MT 246, ¶ 17, 339 Mont. 240, ¶ 17, 168 P.3d 691, ¶ 17. Prior to terminating an individual’s parental rights, a district court must adequately address each applicable statutory requirement. In re D.B., ¶ 17. “To satisfy the relevant statutory requirements for terminating a parent-child relationship, a district court must make specific factual findings.” In re Custody and Parental Rights of C.J.K., 2005 MT 67, ¶ 13, 326 Mont. 289, ¶ 13, 109 P.3d 232, ¶ 13. We review a district court’s findings of fact to determine whether the findings are clearly erroneous. In re L.H., 2007 MT 70, ¶ 13, 336 Mont. 405, ¶ 13, 154 P.3d 622, ¶ 13. “A finding of fact is clearly erroneous if it is not supported by substantial evidence, if the court misapprehended the effect of the evidence or if, upon reviewing the record, this Court is left with the definite and firm conviction that the district court made a mistake.” In re L.H., ¶ 13. We review a district court’s conclusions of law for correctness. In re L.H., ¶ 13.
¶19 “The district court is bound to give primary consideration to the physical, mental and emotional conditions and needs of the children. Consequently, the best interests of the children are of paramount concern in a parental rights termination proceeding and take precedence over the parental rights.” In re C.J.K., ¶ 14 (citing § 41-3- 609(3), MCA). “Moreover, the party seeking to terminate parental rights must demonstrate by clear and convincing evidence that the statutory requirements for termination have been met.” In re C.J.K., ¶ 14.
¶20 Whether a person has been denied his or her right to due process is a question of constitutional law, for which our review is plenary. In re A.S., 2004 MT 62, ¶ 9, 320 Mont. 268, ¶ 9, 87 P.3d 408, ¶ 9. We presume that all statutes are constitutional. State v. Trull, 2006 MT 119, ¶ 30, 332 Mont. 233, ¶ 30, 136 P.3d 551, ¶ 30. A party asserting a constitutional challenge to a statute bears the burden of proving, beyond a reasonable doubt, that the statute is unconstitutional, and any doubt is resolved in favor of the statute. In re M.H., 2006 MT 208, ¶ 22, 333 Mont. 286, ¶ 22, 143 P.3d 103, ¶ 22.
DISCUSSION
¶21 Issue One. Did the District Court’s termination of C.B.’s parental rights to T.S.B., pursuant to §§ 41-3-609(1) (d) and 41-3-423(2)(e), MCA, violate C.B.’s constitutional right to due process?
¶22 C.B. argues that the application of §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, violated his right to due process because: (1) the statutory scheme does not mandate that the District Court hold an adjudication hearing, and (2) the statutes presume unfitness and do not afford C.B. the opportunity to show that his circumstances have changed.
¶23 Sections 41-3-601-612, MCA, provide for the termination of the parent-child relationship. In re K.J.B., ¶ 25. Section 41-3-602, MCA, states:
This part provides procedures and criteria by which the parent-child legal relationship may be terminated by a court if the relationship is not in the best interest of the child. The termination of the parent-child legal relationship provided for in this part is to be used in those situations when there is a determination that a child is abused or neglected, as defined in 41-3-102.
¶24 Accordingly, to proceed with a termination under §§ 41-3-601-612, MCA, there must first be a determination that the child is “abused or neglected.” Section 41-3-102(3), MCA, defines “abused or neglected” as “the state or condition of a child who has suffered child abuse or neglect.” Section 41-3-102(7)(a)(i)-(iii), MCA, then defines “child abuse or neglect” as: “(i) actual physical or psychological harm to a child; (ii) substantial risk of physical or psychological harm to a child; or (iii) abandonment.” Section 41-3-102(7)(b)(i)(A), MCA, also notes that the term “child abuse or neglect” includes “actual physical or psychological harm to a child or substantial risk of physical or psychological harm to a child by the acts or omissions of a person responsible for the child’s welfare ....” A “youth in need of care” means “a youth who has been adjudicated or determined, after a hearing, to be or to have been abused, neglected, or abandoned.” Section 41-3-102(34), MCA. An involuntary termination under §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, does not require that the child be adjudicated as a youth in need of care, only that it be determined the child was abused or neglected. In re ¶ 31.
¶25 In order to terminate the parent-child relationship, the district court must find, by clear and convincing evidence, that any of the criteria enumerated in § 41-3-609(1), MCA, exist. Section 41-3-609(1), MCA; Matter of M.J.W., 1998 MT 142, ¶ 16, 289 Mont. 232, ¶ 16, 961 P.2d 105, ¶ 16. Most relevant to this matter, § 41-3-609(l)(d), MCA, provides that:
The court may order a termination of the parent-child legal relationship upon a finding established by clear and convincing evidence ... that any of the following circumstances exist:
(d) the parent has subjected a child to any of the circumstances listed in 41-3-423(2)(a) through (2)(e)....
¶26 Although DPHHS is generally obligated to make reasonable efforts to prevent removal of a child from the child’s home and to reunify separated families under § 41-3-423(1), MCA, there are several key exceptions. Section 41-3-423(2)(e), MCA, states:
Except in a proceeding subject to the federal Indian Child Welfare Act, the department may, at any time during an abuse and neglect proceeding, make a request for a determination that preservation or reunification services need not be provided. If an indigent parent is not already represented by counsel, the court shall immediately provide for the appointment or assignment of counsel to represent the indigent parent in accordance with the provisions of 41-3-425. A court may make a finding that the department need not make reasonable efforts to provide preservation or reunification services if the court finds that the parent has:
(e) had parental rights to the child’s sibling or other child of the parent involuntarily terminated and the circumstances related to the termination of parental rights are relevant to the parent’s ability to adequately care for the child at issue.
¶27 Under § 41-3-607(1), MCA, “[t]he termination of a parent-child legal relationship may be considered only after the filing of a petition pursuant to 41-3-422 alleging the factual grounds for termination pursuant to 41-3-609.” Section 41-3-422, MCA, provides that a petitioner may request the termination of the parent-child relationship in the abuse and neglect petition. Section 41-3-422(l)(a)(v), MCA. “A petition for the termination of the parent-child legal relationship may be the initial petition filed in a case if a request for a determination that preservation or reunification services need not be provided is made in the petition.” Section 41-3-422(l)(d), MCA.
¶28 With this statutory scheme in mind, we can turn to C.B.’s specific contentions that his right to due process was violated because (1) the statutory scheme does not require that the District Court hold an adjudication hearing, and (2) the statutes presume unfitness and do not afford C.B. the opportunity to show that his circumstances have changed. Each contention can be addressed in turn.
A. Adjudication Hearing
¶29 C.B. claims that because there was no adjudication hearing, the District Court did not receive any testimony or evidence that T.S.B. was abused or neglected. C.B. acknowledges that the statutes do not require adjudication of the child as a youth in need of care when the State is proceeding with termination based on prior involuntary terminations. However, C.B. asserts that the statutory scheme violated his constitutional right to due process because it is at the adjudication hearing where the District Court “ ‘must determine the nature of the abuse and neglect and establish facts that resulted in state intervention and upon which disposition, case work, court review, and possible termination are based.’ ” (Quoting § 41-3-437(2), MCA.) C.B. argues that since the District Court must resolve an evidentiary question at the adjudication hearing, he should be entitled to such a hearing and the State should not get to bypass this stage simply because there are prior terminations that are relevant. C.B. claims that by not requiring this evidentiary finding, § 41-3-609(l)(d), MCA, violates his right to due process.
¶30 A parent’s right to the care and custody of a child constitutes a fundamental liberty interest that must be protected by fundamentally fair procedures. In re D.B., ¶ 17. Proceedings involving the termination of the parent-child relationship must meet due process requisites guaranteed by the Montana and United States Constitutions. In re A.N.W., 2006 MT 42, ¶ 34, 331 Mont. 208, ¶ 34, 130 P.3d 619, ¶ 34. Fundamental fairness and due process require that a parent not be placed at an unfair disadvantage during the termination proceedings. In reA.N.W., ¶ 34.
¶31 We reject C.B.’s argument that the lack of an adjudication hearing violated his constitutional right to due process. While an adjudication hearing is not required, § 41-3-609(l)(d), MCA, still requires a determination that the child is abused or neglected. In re K.J.B., ¶ 31. Here, DPHHS alleged abuse and neglect in its petition, DPHHS provided an affidavit from social worker Holum detailing the grounds for DPHHS’ allegation that T.S.B. was abused or neglected, the District Court heard testimony on the matter from five different witnesses at the hearing, and the District Court issued findings of fact detailing substantial risk of physical or psychological harm to T.S.B.
¶32 Even without an adjudication hearing, the statutory scheme did not deprive C.B. of process. The District Court was still required to determine that T.S.B. was at substantial risk of physical or psychological harm (which constitutes child abuse or neglect under § 41-3-102(7), MCA). In addition, the State also had the burden of showing that C.B. had his parental rights to T.S.B.’s siblings involuntarily terminated and the circumstances related to those involuntary terminations were relevant to C.B.’s ability to adequately care for T.S.B. That C.B. was not placed at an unfair advantage during the termination proceedings is further evidenced by the fact that he received notice of the termination petition, the District Court held a show cause hearing, he was represented by counsel, and he had the opportunity to present evidence and testimony (though he was not required to do so as the burden was on the State).
¶33 C.B. references several cases in which we held that the district court improperly terminated parental rights where the court failed to receive testimony or evidence at an adjudication hearing — In re B.N. Y., 2003 MT 241, 317 Mont. 291, 77 P.3d 189; In re M.O., 2003 MT 4, 314 Mont. 13, 62 P.3d 265; and In re T.C., 2001 MT 264, 307 Mont. 244, 37 P.3d 70. These cases are inapposite to the issue presented here as the terminations all proceeded under § 41-3-609(l)(f), MCA, and can readily be distinguished from the termination of C.B.’s parental rights to T.S.B.
¶34 Under § 41-3-609(l)(f), MCA, a district court may terminate the parent-child relationship when the child is an adjudicated youth in need of care and “(i) an appropriate treatment plan that has been approved by the court has not been complied with by the parents or has not been successful; and (ii) the conduct or condition of the parents rendering them unfit is unlikely to change within a reasonable time.” Section 41-3-609(l)(f), MCA. However, we have held that the parent-child relationship may be terminated without any adjudication, under several statutory circumstances, including when parental rights have been terminated as to other children. In re K.J.B., ¶ 37. Under the criteria listed in § 41-3-609(l)(a)-(f), MCA, for termination of parental rights, only one-§ 41-3-609(l)(f)-requires adjudication of the child as a youth in need of care. In re K.J.B., ¶ 31. Subsections 609(l)(a)-(e) do not mandate this requirement. C.B. has failed to demonstrate how a determination that a child is abused or neglected, versus an adjudication that a child is abused or neglected, violates due process.
¶35 C.B. also asserts that the “prior terminations involving C.B.’s other children should not be used to determine what is an evidentiary question solely about T.S.B.” We disagree. “[T]he circumstances of a prior termination continue to be relevant in a later termination of a sibling under §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, unless the circumstances have changed.” In re Custody and Parental Rights of A.P., 2007 MT 297, ¶ 30, 340 Mont. 39, ¶ 30, 172 P.3d 105, ¶ 30. Furthermore, a termination under § 41-3-609(l)(d), MCA, requires a court to take judicial notice of prior terminations and the facts and circumstances surrounding those orders. See M. R. Evid. 201, 202. A district court, by necessity, must take judicial notice of prior terminations if it is to determine whether those terminations are relevant to the parents’ ability to care for the child currently at issue.
¶36 C.B. has failed to meet his burden of showing that the lack of an adjudication hearing in a § 41-3-609(l)(d), MCA, proceeding is unconstitutional. For the reasons discussed above, C.B. was not placed at an unfair disadvantage during the proceeding as the statutes provide fundamentally fair process. We hold that § 41-3-609(l)(d), MCA, does not violate a person’s right to due process for failure to require an adjudication hearing.
B. Presumption of Unfitness
¶37 C.B. next argues that even if the due process clause does not require that T.S.B. be adjudicated as a youth in need of care, the statutory scheme allowing the District Court to terminate C.B.’s parental rights is still unconstitutional. Although C.B. acknowledges that he was permitted a hearing and received counsel for that hearing, he nonetheless maintains that he had no opportunity to show changed circumstances with respect to T.S.B. because he was not even provided with a treatment plan. Citing Stanley v. Illinois, 405 U.S. 645, 92 S. Ct. 1208 (1972), C.B. claims that the statutes create a presumption of unfitness that when combined with an inability to counter the State’s evidence, violates his constitutional right to due process.
¶38 We recently addressed whether §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, create a presumption of unfitness that violates a parent’s constitutional right to due process in In re A.P. We concluded that the statutory scheme did not violate the parent’s right to due process because she received notice of the petition to terminate, the District Court held a hearing on the merits, and she was present and represented by counsel at that hearing. In reA.P., ¶ 22. Furthermore, we specifically rejected the contention that §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, created a presumption against her. In reA.P., ¶ 23. We explained that DPHHS retained the burden of showing that the circumstances related to the prior termination of parental rights as to A.P.’s siblings were still relevant to the parent’s ability to adequately care for A.P., and that DPHHS was required to establish the statutory elements by clear and convincing evidence. In reA.P., ¶ 23.
¶39 Like the parent in In re A.P., C.B. received notice of the petition to terminate, the District Court held a hearing on the petition’s merits, and C.B. was present and represented by counsel at the hearing. Although C.B. had the opportunity to rebut the State’s allegations and show changed circumstances at the hearing, we note that he chose not to present any witnesses or evidence demonstrating changed circumstances. The statutory scheme did not create a presumption against C.B. as the burden remained on the State.
¶40 We conclude that the statutory scheme provides fundamentally fair process and we reaffirm our holding that §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, do not violate a parent’s constitutional right to due process.
¶41 Issue Two. Did the District Court abuse its discretion in terminating C.B.’s parental rights to T.S.B?
¶42 C.B. next argues that the District Court abused its discretion in terminating C.B.’s parental rights to T.S.B. because the State failed to demonstrate by clear and convincing evidence that C.B. was unable to parent and/or change within a reasonable time. As this issue is analogous to that addressed by this Court in In re K.J.B., we will use that case as a framework for analyzing this issue.
¶43 The District Court first had to determine T.S.B. was at substantial risk of physical or psychological harm. See §§ 41-3-602,41-3-102(3), 41-3-102(7)(a)(ii), MCA; In re K.J.B., ¶ 29. Once the District Court made this determination, C.B.’s parental rights to T.S.B. could be terminated ifit was established by clear and convincing evidence that C.B. had his parental rights to T.S.B.’s siblings or other child of C.B. involuntarily terminated (In re K.J.B.,¶ 29; §§ 41-3-609(l)(d), 41-3-423(2)(e), MCA), and the circumstances related to those involuntary terminations were relevant to C.B.’s ability to adequately care for T.S.B. (In re K.J.B., ¶ 29; §§ 41-3-609(l)(d), 41-3-423(2)(e), MCA). Moreover, the District Court had to give primary consideration to T.S.B.’s physical, mental and emotional conditions and needs, placing T.S.B.’s best interests over C.B.’s parental rights. In re K.J.B., ¶ 29 (citing In re V.F.A., 2005 MT 76, ¶ 8, 326 Mont. 383, ¶ 8, 109 P.3d 749, ¶ 8).
¶44 In its February 26, 2007 petition, DPHHS asserted that it had probable cause to believe that T.S.B. was abused or neglected within the meaning of § 41-3-102, MCA. As grounds for this assertion, the State referenced the previous involuntary terminations of C.B.’s and J.B.’s parental rights to five other children, and attached an affidavit of social worker Sahrita Holum. In her affidavit, Holum discussed the five prior terminations and how they resulted from C.B.’s and J.B.’s difficulties in caring for their special needs children. Holum documented how C.B. had to be constantly prompted to touch or cuddle with one child and that he never adequately grasped how to properly feed the child. Holum further detailed how the parents frequently missed visitations with one child under a. previous treatment plan. Holum also discussed how C.B.’s personality and emotional problems would render it difficult for him to adequately parent. Holum described several psychological evaluations that the parents had received, including with Dr. Zook, and the numerous deficiencies that the evaluators noted with respect to their parenting abilities.
¶45 In its April 25, 2007 order, the District Court determined that C.B.’s and J.B.’s parental rights were involuntarily terminated due to their inability to adequately and safely parent on five previous occasions, that the parents would be unable to safely and adequately care for T.S.B. within a reasonable time, and that continuation of the parent-child relationship between T.S.B. and her parents would likely result in ongoing abuse or neglect. As in In re K.J.B., the District Court here did not abuse its discretion when it determined that T.S.B. was at “substantial risk of physical or psychological harm” by “acts or omissions of a person responsible for the child’s welfare.” Sections 41-3-102(7)(a)(ii), 41-3-102(7)(b)(i)(A), MCA; In re K.J.B., ¶ 32.
¶46 Having concluded that the District Court did not abuse its discretion when it determined that T.S.B. was at substantial risk of abuse or neglect, we now turn to the other requirements for termination of parental rights under § 41-3-609(l)(d), MCA-(l) that C.B. had his parental rights to T.S.B.’s siblings involuntarily terminated, and (2) that the circumstances related to those involuntary terminations were relevant to C.B.’s ability to adequately care for T.S.B. Given that no party contests that C.B. had his parental rights to five of T.S.B.’s siblings involuntarily terminated, we need only address “whether the District Court correctly concluded that the ‘circumstances related to the termination of parental rights are relevant to the parent’s ability to adequately care for the child at issue.’ ” In re K.J.B., ¶ 34 (quoting § 41-3-423(2)(e), MCA).
¶47 C.B. contends that the State failed to show by clear and convincing evidence that he was unable to parent and that he was unable to change within a reasonable time. In support of the contention that he was fit to parent, C.B. notes testimony indicating his affection towards T.S.B., that he helped J.B., and that he asked questions of the hospital staff regarding T.S.B.’s inability to eat. C.B. cites Holum’s testimony stating that although J.B. had difficulty holding T.S.B.’s head, C.B. would redirect her, which C.B. asserts was an indication that he did not have difficulties. C.B. also refers to the testimony of Dr. Zook stating that C.B. was not diagnosed with any psychological problems, only that he had personality disorders. The State counters by arguing that DPHHS met its burden of establishing that C.B. remains unable to safely and adequately address T.S.B.’s special needs and provide for her necessary care. The State claims that C.B.’s “circumstances are unchanged from the circumstances surrounding and underlying his previous parental terminations” and that he remains “untreatable.”
¶48 We agree that DPHHS met its burden of establishing that C.B. remains unable to safely and adequately address T.S.B.’s special needs and provide for her necessary care. In order to terminate C.B.’s parental rights, the State needed to present the District Court with clear and convincing evidence that the circumstances related to those involuntary terminations were relevant to C.B.’s ability to adequately care for T.S.B. The orders for the five previous terminations of C.B.’s parental rights illustrate the numerous difficulties C.B. had in parenting his children. “We have determined that the circumstances of a prior termination continue to be relevant in a later termination of a sibling under §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, unless the circumstances have changed.” In re A.P., ¶ 30. Furthermore, the testimony at the hearing supports the determination that the circumstances related to the previous terminations are relevant to C.B.’s ability to adequately care for T.S.B. As noted earlier, Holum expressed concern that C.B. never once contacted her to see how T.S.B. was doing. Dr. Zook evaluated C.B. in early 2006 and testified as to C.B.’s inadequate parenting skills, his personality disorders, his difficulty in meeting the developmental needs of a child, his lack of emotional expression, and his poor prognosis for change. Dr. Hall explained how T.S.B. suffered from the same genetic condition as her five siblings and how she would likewise require a higher level of care. Previous terminations show that C.B. had difficulty with feeding his other children, and Dr. Hall testified that he again had this trouble with T.S.B. and that it was uncommon for parents to have that much difficulty. The District Court’s findings of fact referenced this testimony. Based on the foregoing evidence and testimony, we conclude, as we did inK.J.B., that “their circumstances are unchanged from the circumstances surrounding and underlying their previous parental terminations.” In re K.J.B., ¶ 36.
¶49 For the foregoing reasons, we conclude that the District Court did not abuse its discretion in terminating C.B.’s parental rights to T.S.B.
CONCLUSION
¶50 We hold that the termination of C.B.’s parental rights to T.S.B. pursuant to §§ 41-3-609(l)(d) and 41-3-423(2)(e), MCA, did not violate C.B.’s constitutional right to due process. Furthermore, we conclude that the District Court did not abuse its discretion in terminating C.B.’s parental rights to T.S.B. as the State established by clear and convincing evidence that C.B. had his parental rights to T.S.B.’s siblings involuntarily terminated, and that the circumstances related to those involuntary terminations were relevant to C.B.’s ability to adequately care for T.S.B.
¶51 Affirmed.
JUSTICES RICE, COTTER, WARNER and MORRIS concur.
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JUSTICE LEAPHART
delivered the Opinion of the Court.
¶1 Liberty Northwest Insurance Corporation (Liberty) appeals from the judgment of the Workers’ Compensation Court (WCC). We affirm.
¶2 We restate the issues as follows:
¶3 Did the WCC err when it concluded that Michalak’s injury-occurred during the course and scope of his employment?
¶4 Did Michalak abandon his employment by participating in reckless behavior?
BACKGROUND
¶5 On July 23, 2005, Curtis M. Michalak (Michalak) suffered an injury while riding a wave runner at his employer’s annual company picnic at Flathead Lake. At the time of his injury, Michalak worked for Felco Industries, Ltd. (Felco) in Missoula, Montana, and Liberty provided Felco’s workers’ compensation insurance.
¶6 Since approximately 1980, John Felton (Felton), Felco’s president and owner, has hosted a company picnic at his lakeside home. Felco generally invites its employees and their families, friends, and vendors to the company picnic. In 2005, Felco rented wave runners for the annual picnic. While riding one of the wave runners, Michalak suffered serious injuries, including several vertebrae fractures, and he was unable to return to his employment with Felco.
¶7 Michalak filed a workers’ compensation claim for his injury. Liberty denied Michalak’s claim on the basis that the injury did not occur within the course and scope of his employment. Michalak then filed a claim with the WCC seeking compensation for his injuries.
¶8 The WCC issued findings of fact and conclusions of law after considering Michalak’s trial testimony and the deposition testimony of Michalak, his co-workers, and other witnesses. The WCC found that Felco notified its employees of the 2005 picnic by placing a notice within the employees’ pay stubs and by displaying notices within the plant. The WCC found that Felco paid for all the picnic supplies, including the wave runner rentals. The WCC found that Michalak had the duty of overseeing the wave runners during the picnic, and it found credible Michalak’s testimony that he bore responsibility for supervising the wave runners’ operation, including providing riders with safety instructions, monitoring the wave runners’ fuel and oil levels, instructing others on how to ride the wave runners, and enforcing time limits on the wave runners’ use. The WCC further found that, “during the performance of his duties,” Michalak took a ride on one of the wave runners and was injured.
¶9 The WCC next applied the four “course and scope” factors set forth in Courser v. Darby School Dist. No. 1 and concluded that Michalak was within the course and scope of his employment when he suffered his injury. 214 Mont. 13, 16-17, 692 P.2d 417, 419 (1984). Liberty appeals the WCC’s holding and challenges both the WCC’s findings of fact and its conclusions of law.
STANDARD OF REVIEW
¶10 We review the WCC’s findings of fact to determine whether they are supported by substantial credible evidence, and we review the WCC’s conclusions of law to determine whether they are correct. Simms v. State Compensation Ins. Fund, 2005 MT 175, ¶ 11, 327 Mont. 511, ¶ 11, 116 P.3d 773, ¶ 11. Substantial credible evidence to support a finding of fact may be somewhat less than a preponderance of evidence but must be more than a mere scintilla. Simms, ¶ 11. We apply the Workers’ Compensation Act (the Act) effective at the time an employee suffers an injury. Wilson v. Liberty Mut. Fire Ins., 273 Mont. 313, 316, 903 P.2d 785, 787 (1995). The 2005 version of the Act governed when Michalak was injured on July 23, 2005.
DISCUSSION
¶11 I. Did the WCC err when it concluded that Michalak’s injury occurred during the course and scope of his employment?
¶12 Employees who receive an injury “arising out of and in the course of employment,” are entitled to workers’ compensation benefits. Section 39-71-407, MCA (2005). Liberty argues that § 39-71-118(2)(a), MCA (2005), removes Michalak from the definition of employee and therefore Michalak’s injury is not compensable.
¶13 Section 39-71-118(2)(a), MCA (2005), defines “employee” and “worker” to exclude a person who is “participating in recreational activity and who at the time is relieved of and is not performing prescribed duties ....” Thus, a person injured while participating in recreational activities still qualifies as an “employee” and retains workers’ compensation coverage if the person is injured while performing “prescribed duties.” Section 39-71-118(2)(a), MCA (2005); Connery v. Liberty Northwest Ins. Corp., 280 Mont. 115, 929 P.2d 222 (1996). Courser’s traditional four-factor “course and scope” analysis determines whether a person is “performing prescribed duties.” Connery, 280 Mont. at 120, 929 P.2d at 225. The factors are: (1) whether the activity was undertaken at the employer’s request; (2) whether the employer, directly or indirectly, compelled the employee’s attendance at the activity; (3) whether the employer controlled or participated in the activity; and (4) whether the employer and the employee mutually benefited from the activity. Connery, 280 Mont. at 121, 929 P.2d at 226. Each factor’s presence or absence “may or may not be determinative,” and each factor’s significance “must be considered in the totality of all attendant circumstances.” Connery, 280 Mont. at 121, 929 P.2d at 226 (quoting Courser, 214 Mont. at 16-17, 692 P.2d at 419). After evaluating these factors, the WCC concluded that Michalak’s injury was compensable because he had not been relieved of his “prescribed duties” and thus was acting within the course and scope of his employment. We review the WCC’s findings of fact to determine whether they are supported by substantial credible evidence, and we review the WCC’s conclusions of law to determine whether they are correct. Simms, ¶ 11.
¶14 Our review of the record supports the WCC’s finding, under the first Courser factor, that the picnic was undertaken at Felco’s request. Felton testified that the Felco company picnic had been an annual event since 1980. Felton testified that he selects the particular date of the pierde and that he and Felco pay the picnic expenses. Felton further testified that Felco provided paddle boats and wave runners because “it’s common sense that people are going to more likely come if you have something like that ....” Denise Sand, Felco’s secretary, testified that she notifies the employees about the picnic through notices placed aromad the plant and in the employees’ paychecks. The notice that Sand distributed in 2005 requested a head-count and indicated that friends, family, and vendors were welcome at the Felco company picnic. Tim Yoder, a Felco supervisor in charge of Felco’s safety program, testified that he received a picnic invitation in his paycheck. Michalak also testified that he received an invitation in his paycheck.
¶15 Regarding the second Courser factor, the WCC found that “at a minimum, Felco indirectly compelled [Michalak’s] attendance at the picnic.” The WCC stated that Michalak felt compelled to attend the picnic because his supervisor had asked him to oversee the wave runners. Steve Talley, Michalak’s supervisor, testified that he felt responsible for instructing the picnic attendees on safety procedures relating to the wave runners. Talley testified that he asked Michalak to assist with and watch over the wave runners because Talley knew that he would be unable to continuously supervise the wave runners. Talley testified that Michalak agreed to provide assistance. Michalak testified that Talley asked him to oversee the wave runners at the picnic. Michalak indicated that he understood Talley’s request to be made in his capacity as Felco’s foreman, not as a personal favor to Talley. Michalak testified that he went to the office of Fish, Wildlife, and Parks and at some point obtained and reviewed a copy of the Montana boating regulations. Michalak testified that one of his daughters felt ill on the morning of the picnic, and he thought he would be unable to attend. Her condition soon improved, however, and Michalak testified that he and his family went to the picnic so that he could fulfill his obligation and respect his employer. We conclude that substantial credible evidence supports the WCC’s finding that Felco compelled Michalak’s attendance at the company picnic.
¶16 As to the third Courser factor, the WCC found that Felco controlled and participated in the picnic activities. Felton testified that he selects the date of the picnic and that he and Felco pay for the picnic expenses, including food, beverages, paddleboats, and wave runners. He further testified that Felco provides everything and has a policy against employees bringing items to the picnic. Felton testified that he hosts the company picnic at his home on Flathead Lake. Felton further testified that he believed Felco took a tax deduction for the picnic expenses. Shawn Skinner, Felco’s general manager, testified that he had duties and responsibilities related to organizing the picnic, but primarily delegated the tasks associated with organizing the picnic to Ken Lockwood, an independent contractor, and Denise Sand. Sand testified that she used a Felco company credit card to purchase the picnic supplies, including the wave runner rentals. Sand further testified that Felco claimed the picnic expenses as a tax deduction. Several witnesses also testified that the annual company picnic features a horseshoe tournament, with the winner earning a spot on a plaque displayed at Felco. We conclude that substantial credible evidence supports the WCC’s finding that Felco controlled or participated in the picnic.
¶17 Finally, the WCC found that Felco and its employees mutually benefited from the picnic. Felton testified that the company picnics were good for the company and that the picnic promoted good relations. Tim Yoder testified that the picnic was good for the company and good for morale. Skinner testified that the company picnic benefited Felco and Felco’s employees. Sand testified that the picnic was good for the company because the picnic provides an opportunity for the employees to congregate with their spouses and extended family. We conclude that substantial credible evidence supports the WCC’s finding, under the fourth Courser factor, that the Felco company picnic provided mutual benefit to Felco and its employees.
¶18 Liberty’s argument that Michalak failed to satisfy the Courser factors rests on the misconception that the “activity’ in the Courser analysis should be Michalak’s wave runner ride, rather than the Felco company picnic. However, Liberty’s narrow focus on Michalak’s wave runner ride is inconsistent with Courser itself. In Courser, we determined that Courser was within the course and scope of his employment when he was injured in a motorcycle accident while commuting from graduate school to his home in Dillon, Montana. We applied the four-factor “course and scope” analysis and focused on the activity of attending graduate school, not the motorcycle ride. 214 Mont. at 16-17, 692 P.2d at 419. The WCC properly focused its Courser analysis on the Felco company picnic as the “activity,” rather than Michalak’s ride on the wave runner, to determine whether Michalak’s injury occurred within the course and scope of his employment.
¶19 We conclude that substantial credible evidence supports the WCC’s findings under the Courser factors. Based on its Courser analysis, the WCC determined that, though Michalak was injured while participating in a recreational activity, he nonetheless was within the course and scope of his employment when he was injured and that his injury was compensable. We conclude that the WCC’s findings support its conclusion of law that Michalak was injured within the course and scope of his employment.
¶20 Liberty argues that the above four-factor analysis has no place in Montana’s jurisprudence and advocates that we overrule Courser. According to Liberty, the Courser factors trace their ancestry to the “liberal construction” statute, § 39-71-104, MCA (1985), and, because the Legislature has repealed that statute, the factors should be excised from our jurisprudence. Additionally, Liberty describes this Court’s Connery decision, in which we concluded that the “prescribed duties” of § 39-71-118(2)(a), MCA, are determined by applying the Courser factors, as “simply a judicial abracadabra.” We disagree with Liberty on both counts. First, the Courser factors set forth what a court should analyze to determine whether a person’s injury falls within the course and scope of employment; the Legislature’s directive that the Act be construed according to its terms and not liberally in favor of any party instructs a court how to interpret the Act. Section 39-71-105, MCA (2005). The Courser factors and the Legislature’s directive are not mutually exclusive and we decline Liberty’s plea to overrule Courser and its successive body of case law. Second, as to the “judicial abracadabra” charge, we explained in Connery that the Legislature left the term “prescribed duties” undefined and we noted that defining prescribed duties is fact-intensive and varies depending on the particular case. Thus, we concluded that “the application of a traditional course and scope of employment analysis is, and will be, necessary to determine exactly what an employee’s ‘prescribed duties’ are in a particular case.” 280 Mont. at 120, 929 P.2d at 225. In the eleven years since Connery, the Legislature has declined to modify or further define the term “prescribed duties.” Absent farther legislative direction, we reject Liberty’s plea to overrule Courser, Connery, and the ensuing cases applying the “course and scope” factors. We conclude that the WCC applied the correct analysis to determine whether Michalak’s injuries were compensable.
¶21 II. Did Michalak abandon his employment by participating in reckless behavior?
¶22 Liberty argues that Michalak abandoned his employment by operating the wave runner in a reckless manner. According to Liberty, the only way Michalak could have sustained his severe injuries is by operating the wave runner at a high rate of speed and in a dangerous manner. In support of its argument, Liberty cites to Hicks v. Glacier Park, Inc., 236 Mont. 113, 768 P.2d 346 (1989).
¶23 In Hicks, a Glacier National Park bellhop, who fancied himself an auto-mechanic, attempted to assist a guest with a weak car battery. The bellhop first push-started the car, then accelerated to a high rate of speed, failed to stop at a stop sign, and eluded a pursuing park ranger by putting “the pedal to the metal.” The bellhop eventually lost control of the vehicle and crashed into a tree approximately two-and-a-half miles from the hotel. 236 Mont. at 114, 768 P.2d at 347. The WCC found that even if the bellhop was initially within the course and scope of his employment, he deviated from the scope of his employment when he evaded the law enforcement officer. We affirmed the WCC’s judgment denying compensation to the bellhop. Hicks, 236 Mont. at 117, 768 P.2d at 348.
¶24 Liberty argues that, like the bellhop in Hicks, Michalak abandoned the course and scope of his employment when he operated the wave runner recklessly and at high speed and thus “pursue[d] an objective in nowise essential to or incidental to any service he is paid to perform ....” Hicks, 236 Mont. at 115, 768 P.2d at 347 (emphasis omitted). Hicks is inapplicable to this case. Unlike Hicks, the WCC in this case made no findings that Michalak acted recklessly or negligently. In fact, the WCC made no findings regarding the manner in which Michalak operated the wave runner other than finding that he was injured during'the performance of his duties:
[Michalak] testified that he was instructed to help pick up the wave runners, supervise, give safety instructions, monitor the fuel and oil levels, provide instructions on how to ride them, and enforce time limits on their operation. At one point, during the performance of his duties, [Michalak] elected to take a turn on one of the wave runners himself because one was available.
While riding one of the wave runners, [Michalak] sustained the injuries that are the subject of this action. [Michalak’s] recollection as to the specifics of how he was injured is vague because of his injuries.
¶25 Though Liberty acknowledges that Michalak provided some assistance before taking a ride on the wave runner, Liberty claims that testimony from Michalak and Talley supports finding both that Michalak was operating the wave runner in a reckless manner and that he was untrustworthy as a witness. Michalak testified that as he executed a subtle left-hand turn, he saw “something very weird in the water, and that is the last thing I remember.” Michalak testified that he regained consciousness underwater and that he had to blow bubbles to determine the direction of the surface. He stated that when he gained the surface of the lake, the wave runner was “quite a distance” from him. Talley testified that Michalak told him that “he was out there flipping the Wave Runner around” when he was injured. Based on this testimony, Liberty urges that the only possible explanation for Michalak’s injury is that “he was traveling at a very high rate of speed when he lost control of the wave runner and was plunged deep into Flathead Lake.”
¶26 In essence, Liberty calls on this Court to make additional findings of fact regarding Michalak’s injury. Liberty states that “it is conclusively established by the [un-contradicted] testimony of Talley that [Michalak] injured himself while whipping the wave runner around at a high speed.” However, Talley’s testimony is contradicted: Michalak testified that he was not “wave-jumping” when he was injured, but that he was making a subtle left-hand turn and saw a discoloration in the water. Other witnesses testified that they saw logs floating in the lake in 2005. Further, the WCC determined that Michalak was a credible witness. The WCC also found that Michalak was injured during the performance of his duties; we concluded under Issue I that substantial credible evidence supported the WCC’s Courser analysis and that the WCC correctly concluded that Michalak’s injury occurred diming the course and scope of his employment. Our standard is whether substantial credible evidence supports the WCC’s findings, not whether evidence supports findings different from those made by the WCC. Taylor v. State Compensation Ins. Fund, 275 Mont. 432, 440, 913 P.2d 1242, 1246 (1996). In this case, the WCC’s findings are supported by substantial credible evidence; moreover, we refuse to substitute our judgment for that of the WCC’s when the issue “relates to the weight given to certain evidence or the credibility of the witnesses.” Taylor, 275 Mont. at 437, 913 P.2d at 1245.
CONCLUSION
¶27 We conclude that the WCC properly applied the four factors from Courser v. Darby School Dist. No. 1, 214 Mont. 13, 692 P.2d 417 (1984), to determine whether Michalak’s injury while riding a wave runner at the Felco company picnic occurred during the course and scope of his employment. We conclude that substantial credible evidence exists to support the WCC’s findings under the Courser factors and that the WCC correctly concluded that Michalak was injured during the course and scope of his employment. We affirm.
JUSTICES WARNER, NELSON, COTTER and MORRIS concur.
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JUSTICE MORRIS
delivered the Opinion of the Court.
¶ 1 Larry Luloff and J anet Perkins Luloff (collectively, Luloffs) appeal from an order of the Twenty-Second Judicial District Court, Carbon County, granting James M. Walters’s and Diane M. Walters’s motion for summary judgment. The Luloffs also appeal the District Court’s determination of damages and award of attorney fees to the Walters. We affirm in part, vacate the award of attorney fees, and remand for further proceedings.
¶2 We review the following issues on appeal:
¶3 Did the District Court err in granting the Walters’ motion for summary judgment ?
¶4 Did the District Court commit an abuse of discretion in its determination of damages?
¶5 Did the District Court commit an abuse of discretion when it awarded attorney fees to the Walters?
FACTUAL AND PROCEDURAL BACKGROUND
¶6 The Stormitt Butte Subdivision sits just south of Boyd, Montana, in Carbon County. The Luloffs owned the subdivision. James M. Walters (Jim) and Diane M. Walters (collectively, Walters) entered into a buy-sell agreement on May 11, 2000, to purchase Lot Six of the Stormitt Butte Subdivision from the Luloffs.
¶7 The Luloffs’ real estate agent informed the Walters that the well on Lot Six produces two and one-half gallons of water per minute. The Luloffs’ agent provided a well log report (Well Log One) to the Walters at the signing of the buy-sell agreement. Well Log One indicated that the well runs 801 feet deep. Well Log One denoted the well’s production as two and one-half gallons of water per minute.
¶8 The Walters, the Luloffs, and the Luloffs’ real estate agent met to close the sale of Lot Six on June 2, 2000. The Luloffs assured the Walters that the well produces clear drinking water. Jim Walters inquired again concerning Well Log One and the well’s production. Larry Luloff asserted that Well Log One accurately reflected both the well’s depth and the well’s production. Larry Luloff asserted that the well produces two and one-half gallons of water per minute. The Walters received an additional copy of Well Log One and the parties closed the sale.
¶9 The Walters purchased Lot Six from the Luloffs for $41,824 under a contract for deed. The contract for deed included a provision requiring the Walters to keep the property free of liens and encumbrances, an acceleration clause, and an attorney fee provision.
¶10 The Walters built a home on the property and had a pump placed in the well. The pump initially failed to work. The pump ultimately produced a limited amount of dirty water and would run dry after approximately thirty minutes. The Walters refused to pay for the pump, and the installation company filed a construction lien against the property. The Luloffs then declared a default of the contract for deed and demanded the purchase price under the acceleration clause. The Walters refinanced in order to avoid forfeiture of Lot Six.
¶11 The Walters contacted Mike Keele (Keele), an employee of Aqua Drilling, Inc., regarding the well on Lot Six. Keele had assisted in drilling the well on Lot Six. Keele informed the Walters that, according to his company records, the well produces only half of a gallon of water per minute.
¶12 Keele accompanied Jim Walters to Lot Six to examine the well in the fall of 2001. Larry Luloff arrived at the site. Luloff gave Walters another well log report (Well Log Two). Well Log Two indicated that the well on Lot Six produces one and one-half gallons of water per minute. Well Log One and Well Log Two bear the same date and signature. The reports appear identical except for the different figure denoting the well’s rate of production.
¶13 Keele examined Well Log Two and informed the Walters that it incorrectly recorded the well’s production rate. Keele stated that someone “obviously” had “altered” the report. Keele then examined Well Log One and confirmed that it too incorrectly denoted the well’s production rate. Keele advised the Walters to examine the well log information on file with the Montana Bureau of Mines and Geology Ground Water Information Center (Bureau of Mines and Geology). Information on file with the Bureau of Mines and Geology confirms that the well on Lot Six produces only half of a gallon of water per minute. The well’s limited production forced the Walters to install a cistern system on Lot Six. The Walters had to haul water to the cistern in order to service their home.
¶14 The Walters filed suit against the Luloffs and their real estate agent on June 27, 2003. The Luloffs declined to obtain counsel and filed an answer pro se. The Luloffs filed numerous motions and documents with the District Court, including an affidavit submitted on September 16, 2003. The Luloffs assert in the affidavit that they did not convey any information to the Walters concerning Lot Six’s well “prior to June 2, 2000, which was the date of the closing on the lot.” The Luloffs also provided an answer to the Walters’ discovery request. The Luloffs’ answer provides: “My knowledge is that the well was drilled to 800 feet, filled back to 400 feet and cased to that depth. The volume of water at that time was 700 gallons per day ....”
¶15 The Walters filed a motion for summary judgment on March 13, 2006. The court held a hearing on the motion on June 20, 2006, after postponing the hearing at the Luloffs’ request. The Luloffs failed to appear at the hearing. The District Court granted the Walters’ motion for summary judgment on the issue of liability on July 18, 2006.
¶16 The District Court held a hearing on damages on November 13, 2006. The Luloffs appeared pro se at the hearing. The Luloffs obtained counsel for the first time in this matter on November 29, 2006. The District Court determined the amount of damages and awarded the Walters attorney fees in its Findings of Fact, Conclusions of Law, and Order entered on January 11, 2007. The Luloffs appeal the District Court’s grant of summary judgment, its determination of damages, and the award of attorney fees to the Walters.
STANDARD OF REVIEW
¶17 We review de novo a district court’s decision to grant summary judgment, using the criteria applied by the district court under M. R. Civ. P. 56. Farmers Cooperative Assoc. v. Amsden, LLC, 2007 MT 286, ¶ 24, 339 Mont. 445, ¶ 24, 171 P.3d 690, ¶ 24. A district court properly grants a motion for summary judgment when no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Farmers Cooperative, ¶ 24. We review a district court’s determination of damages and award of attorney fees for abuse of discretion. Weimar v. Lyons, 2007 MT 182, ¶ 17, 338 Mont. 242, ¶ 17, 164 P.3d 922, ¶ 17; Rosenthal v. County of Madison, 2007 MT 277, ¶ 23, 339 Mont. 419, ¶ 23, 170 P.3d 493, ¶ 23.
DISCUSSION ISSUE ONE
¶18 Did the District Court err in granting the Walters’ motion for summary judgment?
¶19 The Luloffs argue that the District Court improperly granted summary judgment by default. The Luloffs further contend that the affidavit filed with the court on September 16, 2003, raised a genuine issue of material fact that precluded the grant of summary judgment. The Luloffs also argue for the first time on appeal that the Walters’ original complaint alleged only actual fraud. This court generally will not address an issue that a party did not raise before the district court. Owens v. Montana Dept. of Revenue, 2007 MT 298, ¶ 2, 340 Mont. 48, ¶ 2, 172 P.3d 1227, ¶ 2. Accordingly, we address only those issues that the Luloffs properly preserved for appeal.
¶20 A party seeking summary judgment must provide the court with evidence that demonstrates the absence of genuine issues of material fact. Bradley v. Crow Tribe of Indians, 2005 MT 309, ¶ 13, 329 Mont. 448, ¶ 13, 124 P.3d 1143, ¶ 13. We look to the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits to determine the existence of genuine issues of material fact. Bradley, ¶ 12. The burden shifts to the non-moving party to demonstrate that a genuine issue of material fact exists. Bradley, ¶ 14. The non-moving party has an affirmative obligation to respond by affidavits or other sworn testimony to raise genuine issues of fact. HKM Assoc. v. Northwest Pipe Fittings, 272 Mont. 187, 193, 900 P.2d 302, 305-06 (1995). A district court may not grant summary judgment against a party, however, simply “because they did not respond to the motion, or did not show up at the hearing.” Bradley, ¶ 26.
¶21 A court properly grants a motion for summary judgment on a claim for negligent misrepresentation when the record affirmatively establishes (1) that the defendant made a false representation as to a past or existing material fact without any reasonable ground for believing it to be true, regardless of his or her actual belief, with the intent to induce the plaintiff’s reliance; and (2) that the plaintiff, unaware of the falsity of the representation, justifiably relied on the representation and suffered damage as a result of that reliance. Cechovic v. Hardin & Associates, Inc., 273 Mont. 104, 112, 902 P.2d 520, 525 (1995).
¶22 The Walters filed documentary evidence and an affidavit in support of their motion for summary judgment. The Walters established that they inquired about the quantity of the water produced by Lot Six’s well on numerous occasions, and that they specifically inquired about the well’s production at the closing of the sale. The Walters established that Larry Luloff responded at the closing that the well produces two and one-half gallons of water per minute. The Walters demonstrated this statement’s falsity through Keele’s affidavit, the report from the Bureau of Mines and Geology, and a second well report provided by Larry Luloff that denoted the well’s production at only one and one-half gallons of water per minute.
¶23 The Luloffs’ response to discovery states that Larry Luloff knew at the closing that the well produced “700 gallons” of water per day. This discovery response reveals that Larry Luloff did not have reasonable grounds to believe his assertion at closing that the well produces two and one-half gallons of water per minute, or 3,600 gallons per day.
¶24 A buyer justifiably relies on a seller’s representations concerning a property’s water supply. See Parkhill v. Fuselier, 194 Mont. 415, 419, 632 P.2d 1132, 1135 (1981). The Walters justifiably relied on the Luloffs’ representations concerning Lot Six’s well and its water production. The Walters verified that they suffered harm as a result of relying on the Luloffs’ representations.
¶25 The District Court found that the Walters had satisfied their initial burden under summary judgment. The Luloffs, on the other hand, failed to submit any response to the motion for summary judgment. Indeed, the Luloffs failed to attend the hearing on summary judgment. The District Court’s order cites the Luloffs’ failure to respond as constituting a failure to satisfy the then-shifted burden under summary judgment. The District Court did not grant summary judgment by default.
¶26 The Luloffs assert, nonetheless, that the affidavit that they had submitted two and one-half years earlier raised a genuine issue of material fact. The affidavit states that the Luloffs had no contact or communication with the Walters before the closing of the sale of Lot Six.
¶27 The Walters’ motion for summary judgment faulted the Luloffs for statements made at the closing of the sale of the property. The Luloffs’ affidavit does not raise a genuine issue of fact with regard to the alleged statements made at closing. The District Court properly determined that the Luloffs had failed to demonstrate the existence of a genuine issue of fact. We conclude that the District Court properly granted the Walters’ motion for summary judgment.
ISSUE TWO
¶28 Did the District Court commit an abuse of discretion in its determination of damages?
¶29 The Luloffs argue for the first time on appeal that the District Court failed to apportion the damages between the Luloffs and their real estate agent. We decline to address the issue of apportionment in light of the Luloffs’ failure to raise it in the District Court. Owens, ¶ 2.
¶30 With respect to the amount of damages, we note that a plaintiff is entitled to those losses incurred in justifiable reliance upon a defendant’s negligent misrepresentations. Bokma Farms, Inc. v. State, 2000 MT 298, ¶ 11, 302 Mont. 321, ¶ 11, 14 P.3d 1199, ¶ 11. The District Court concluded that the Walters established the absence of any genuine fact issue relative to a claim of negligent misrepresentation against the Luloffs. The District Court assessed the damages in light of the Walters’ reliance on the Luloffs’ misrepresentations. The District Court’s determination of damages did not constitute an abuse of discretion based on the record before us.
ISSUE THREE
¶31 Did the District Court commit an abuse of discretion when it awarded attorney fees to the Walters?
¶32 The Luloffs argue that the District Court improperly awarded attorney fees to the Walters. The Luloffs point out that the Walters did not allege a claim for attorney fees in their complaint. The Luloffs contend that the Walters failed to assert a contract based claim and cannot recover attorney fees on a claim for negligent misrepresentation-the sole claim on which the Walters prevailed.
¶33 We generally prohibit a party from recovering attorney fees absent a specific contractual provision or statutory grant. Cechovic, 273 Mont. at 123, 902 P.2d at 532. We have held, however, that a district court has the equitable power to award attorney fees when justice so requires. In re Estate of McDermott, 2002 MT 164, ¶ 34, 310 Mont. 435, ¶ 34, 51 P.3d 486, ¶ 34. We quoted in McDermott the court’s account of the actions of the penalized party, who took “ ‘every opportunity to obstruct and avoid a resolution of the issues ...’ ” and held “ ‘positions that are not supported by law or facts....’” McDermott, ¶ 33. We further noted in McDermott that § 37-61-421, MCA, authorizes a district court to award attorney fees when a party “ ‘multiplies the proceedings in any case unreasonably and vexatiously ....’ ” McDermott, ¶ 34.
¶34 The District Court awarded attorney fees pursuant to a provision in the contract for deed, and alternatively on the basis that “justice so requires.” We note, however, that neither the Walters’ complaint nor their motion for summary judgment asserts a contract claim. The District Court also failed to explain why justice required the award of attorney fees to the Walters. The District Court maintains the best perspective for determining the reasonableness of the Luloffs’ actions. Accordingly, we vacate the award of attorney fees. We remand to the District Cotut for the sole purpose of determining whether an award of attorney fees to the Walters remains appropriate on the basis that “justice so requires.”
¶35 Affirmed in part, vacated in part, and remanded.
JUSTICES NELSON, WARNER, COTTER and RICE concur.
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Affirmed
Dist. 18 (Gallatin)
|
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Affirmed
Dist. 18 (Gallatin)
|
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Denied
Original Proceeding Habeas Corpus and other direct appeal matters
|
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Affirmed & Reversed
Dist. 6 (Park)
|
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Denied
Original Proceeding Habeas Corpus
|
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Denied
Original Proceeding Mandamus
|
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Affirmed
Dist. 21 (Ravalli)
|
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 The Commissioner of Higher Education, Clayton Christian (Commissioner), challenges the summary judgment order entered by the First Judicial District Court, Lewis and Clark County, in favor of Petitioner Jon Krakauer (Krakauer), which ordered the release/inspection of certain student disciplinary records. We affirm in part, reverse in part, and remand for further proceedings. The Commissioner raises several issues, which we restate as follows:
1. Does Krakauer, a Colorado resident, have standing to avail himself of the right to know granted under Article II, Section 9 of the Montana Constitution?
2. Is the release of records responsive to Krakauer’s request prohibited by the Family Educational Rights and Privacy Act of 1974 (FERPA), as amended, and/or by § 20-25-515, MCA?
3. How does Article II, Section 9 of the Montana Constitution apply to the request for release of the subject student records?
4. Did the District Court abuse its discretion when it awarded attorney fees and costs to Krakauer?
Because we remand for further proceedings, we do not address the merits of the attorney fee issue. We vacate the fee award so that the matter may be reconsidered upon conclusion of the proceeding.
PROCEDURAL AND FACTUAL BACKGROUND
¶2 This is a dispute over release of student records related to allegations of sexual assault occurring near the Missoula campus of the University of Montana (University). The underlying allegations of the case were part of a broader campus cultural concern that garnered local and national media attention. Krakauer, a journalist and resident of Colorado, conducted an investigation and published a book chronicling instances of alleged sexual misconduct on or near the University campus. This case involves one of those instances. When Krakauer’s request for release of certain student records related to the matter was denied by the Commissioner, Krakauer initiated this action by filing a petition in the First Judicial District Court.
¶3 In support of his petition, Krakauer submitted documents that the United States District Court for the District of Montanahad previously unsealed and released. Doe v. Univ. of Mont., No. CV 12-77-M-DLC, 2012 U.S. Dist. LEXIS 88519 (D. Mont. June 26, 2012), available at https://perma.cc/3RRE-ETXB. There, a student (Doe) initiated the action under seal, seeking a preliminary injunction halting the University’s disciplinary proceedings against him. The documents, now part of the record here, indicate that after a female student made an allegation that Doe had raped her in an off-campus apartment, the University initiated an investigation into a possible violation of the Student Conduct Code. Dean of Students Charles Couture determined that Doe committed sexual intercourse without consent, and as sanctions, recommended Doe’s immediate expulsion from the University and restriction from all University property and University-sponsored events. Doe, represented by counsel, appealed the Dean’s determination to the University Court, a body made up of faculty, staff, and students appointed to hear disciplinary matters.
¶4 The University Court conducted a hearing and concluded by a 5-2 vote that Doe had committed sexual intercourse without consent, and further concluded by a unanimous vote of 7-0 that he should be sanctioned by expulsion from the University. Pursuant to the Student Conduct Code, Doe requested that the University Court’s determination be reviewed by President Engstrom. President Engstrom’s review considered whether the evidence provided a reasonable basis for the findings and disciplinary sanction, and whether procedural errors were so substantial as to deny a fair hearing to either party. President Engstrom upheld the University Court’s findings and proposed sanction, and found no procedural error that denied a fair hearing.
¶5 As the final step in the disciplinary appeal process, Doe appealed President Engstrom’s decision to the Commissioner, whose office acknowledged receipt of the appeal. This is the last step in the process documented in the records released by the U.S. District Court in Doe. Nothing more is documented there or in the record here about the Commissioner’s subsequent actions in the case.
¶6 Krakauer filed a request with the Commissioner’s office on January 17, 2014, naming a particular student and asking for “the opportunity to inspect or obtain copies of public records that concern the actions of the Office of the Commissioner of Higher Education in July and August 2012 regarding the ruling by the University Court of the University of Montana in which student... was found guilty of rape and was ordered expelled from the University.” Krakauer asserted factual connections between the federal Doe case and a highly-publicized state criminal proceeding that had been initiated against the then-starting quarterback of the University’s football team. He maintained that the student Doe and the quarterback were the same person, and his request to the Commissioner named the student specifically. Krakauer postulated that the Commissioner must have overturned the University Court’s and President Engstrom’s decision and sanction of expulsion, noting that the student had “remained in school and continued to participate as the Grizzly quarterback.”
¶7 The Commissioner refused to acknowledge that such records existed, and further refused to permit inspection or release of any such documents, asserting that federal and state law prevent him from doing so. Krakauer initiated this action on February 12, 2014, citing the right to know under the Montana Constitution. Upon cross-motions for summary judgment, and after holding a hearing, the District Court granted summary judgment to Krakauer, and ordered the Commissioner to “make available for inspection and/or copying within 21 days” the requested records, with students’ names, birthdates, social security numbers, and other identifying information redacted.
¶8 The Commissioner appealed and we initially dismissed the case without prejudice, as the District Court had not yet entered an order addressing the attorney fee issue. The District Court awarded fees to Krakauer on June 19,2015, and the Commissioner again undertook an appeal.
STANDARDS OF REVIEW
¶9 “We conduct de novo review of summary-judgment orders, performing the same analysis as does a district court pursuant to Rule 56 of the Montana Rules of Civil Procedure.” Lorang v. Fortis Ins. Co., 2008 MT 252, ¶ 36, 345 Mont. 12, 192 P.3d 186 (citing LaTray v. City of Havre, 2000 MT 119, ¶ 14, 299 Mont. 449, 999 P.2d 1010).
¶10 Substantively, Krakauer’s Petition was based upon the constitutional right to know, and the Commissioner likewise raises constitutional issues. “Our review of questions involving constitutional law is plenary. A district court’s resolution of an issue involving a question of constitutional law is a conclusion of law which we review to determine whether the conclusion is correct.” Bryan v. Yellowstone Cnty. Elementary Sch. Dist. No. 2, 2002 MT 264, ¶ 16, 312 Mont. 257, 60 P.3d 381 (internal citation omitted) (citing Schuff v. A.T. Klemens & Son, 2000 MT 357, ¶ 28, 303 Mont. 274, 16 P.3d 1002).
DISCUSSION
¶11 1. Does Krakauer, a Colorado resident, have standing to avail himself of the right to know granted under Article II, Section 9 of the Montana Constitution?
¶12 The Commissioner argues that Krakauer, as a resident of Colorado, does not have standing to pursue his Petition, because he is not a party intended to benefit from the Montana Constitutional right to know provision, and related statutes. The Commissioner argues this privilege was created and enacted for the sole benefit of Montana citizens, to allow them access to the workings of their own government.
¶13 In Schoof v. Nesbit, 2014 MT 6, 373 Mont. 226, 316 P.3d 831, we clarified the standing requirements, and more specifically the required showing for injury, under Article II, Section 9 of the Montana Constitution. After doing so for purposes of that case, we noted, “It is not appropriate in this case to address the parameters of standing for right to know and right of participation claims that may arise in other contexts.” Schoof, ¶ 25. Later the same year, we addressed another standing argument related to Article II, Section 9 of the Montana Constitution, in Shockley v. Cascade Cnty., 2014 MT 281, 376 Mont. 493, 336 P.3d 375. There, we held that the Montana Constitution does not prohibit a citizen of one Montana county from requesting public documents from a public body in another county. Shockley, ¶ 22. We declined to address “the question of whether standing extends beyond Montana citizensl. I” Shockley, ¶ 23. That question arises here.
¶14 Article II, Section 9 of the Montana Constitution is short and clear. “No person shall be deprived of the right to examine documents or to observe the deliberations of all public bodies or agencies of state government and its subdivisions, except in cases in which the demand of individual privacy clearly exceeds the merits of public disclosure.” The Commissioner asks this Court to consider that, while the actual constitutional language uses the word “person,” the enabling statutes use the word “citizen” in describing the persons having the right to inspect public documents. Compare § 2-6-102, MCA (2013) (“Every citizen has a right to inspect and take a copy of any public writings of this state ....”) (repealed 2015), and 2015 Mont. Laws 1484, 1486 (effective date Oct. 1,2015) (“Except as provided in subsections (2) and (3), every person has a right to examine and obtain a copy of any public information of this state.”). The Commissioner also cites to the use of the word “citizen” in transcripts of debates about the issue during the Montana Constitutional Convention.
¶15 As we have previously stated, Article II, Section 9 of the Montana Constitution is “unambiguous and capable of interpretation from the language of the provision alone.” Great Falls Tribune Co. v. Day, 1998 MT 133, ¶ 30, 289 Mont. 155, 959 P.2d 508 (citing Great Falls Tribune v. District Court of Eighth Judicial Dist., 186 Mont. 433, 437, 608 P.2d 116, 119 (1980)). We have also stated that the provision is “unique, clear and unequivocal,” and that “[w]e are precluded, by general principles of constitutional construction, from resorting to extrinsic methods of interpretation.” Associated Press v. Bd. of Pub. Educ., 246 Mont. 386, 391, 804 P.2d 376, 379 (1991). We thus rely on the language of the provision itself, which expressly provides that “no person” shall be deprived of the right to examine documents or observe the deliberations of public bodies, except when required by the demands of individual privacy.
¶16 “Since the alleged injury is premised on the violation of constitutional and statutory rights, standing depends on ‘whether the constitutional or statutory provision ... can be understood as granting persons in the plaintiff s position a right to judicial relief.’” Schoof, ¶ 21 (citing Warth v. Seldin, 422 U.S. 490, 500, 95 S. Ct. 2197, 2206 (1975)). Therefore, under the plain language of the provision, we hold that Krakauer, though an out-of-state resident, has standing to invoke the right to know guarantees under Article II, Section 9 of the Montana Constitution.
¶17 2. Is the release of records responsive to Krakauer’s request prohibited by the Family Educational Rights and Privacy Act of 1974 (FERPA), as amended, and/or by § 20-25-515, MCA?
¶18 The Commissioner contends that because Krakauer’s records request referenced a student by name, FERPA prohibits his office from releasing any records responsive to Krakauer’s request. The Commissioner argues that § 20-25-515, MCA, likewise prohibits him from releasing the requested records. Krakauer responds that FERPA is essentially spending clause legislation that does not actually prohibit the University or the Commissioner from releasing records, that one of the explicit exceptions to FERPA’s general prohibition on the release of student records applies in this context, and that § 20-25-515, MCA, actually permits the release of the requested records.
a. General Applicability of FERPA
¶19 Krakauer argues that FERPA “simply does not prohibit anything”; it merely conditions federal funding on confidentiality compliance. He cites to Bd. of Trs. v. Cut Bank Pioneer Press, 2007 MT 115, ¶ 24, 337 Mont. 229, 160 P.3d 482, where we stated that FERPA has been described as “spending legislation.” Krakauer contends that the Commissioner’s fear of losing federal funding is “wholly speculative,” and points out that, in its amicus brief, the United States has conspicuously refrained from “any claim or assertion that ... the [Montana University System] will suffer any penalty” if it releases the requested documents. Krakauer asserts that “FERPA’s spending legislation merely sets conditions on the receipt of federal funds and cannot forbid or prohibit any state action.”
¶20 Congress enacted FERPA to “protect the privacy of students and their parents.” Pioneer Press, ¶ 24; see also 34 C.F.R. § 99.2 (“The purpose of this part is to set out requirements for the protection of privacy of parents and students ....”). FERPA prohibits educational institutions and agencies from having a policy or practice of releasing education records or personally identifiable information contained in education records, and conditions receipt of federal monies on those institutions’ compliance with its directives. See 20 U.S.C. § 1232g. The University, as a recipient of federal funds, agreed in its Program Participation Agreement to comply with “The Family Educational Rights and Privacy Act of 1974 and the implementing regulations... [,] ” and thereby assumed the risk the Secretary of Education would withhold future funds in the event of substantial non-compliance. See 20 U.S.C. § 1234c(a)(l).
¶21 Krakauer is seeking records related to a specific student’s disciplinary proceedings, and the Commissioner argues that Krakauer’s particular request fell squarely under FERPA’s prohibitions. The Commissioner offers that another kind of request would have been handled differently by his office: “If Krakauer had wanted an understanding of how the Commissioner’s office handles appeals related to student conduct code complaints ..., he could have requested all decisions resolving complaints for some appropriate specified period of time, and he would have received the Commissioner’s decisions for a variety of cases with the names, dates and any other personally identifiable information redacted.”
¶22 Title 20, Section 1232g(a)(4)(A) of U.S. Code provides: “For the purposes of this section, the term ‘education records’ means,..., those records, files, documents, and other materials which—(i) contain information directly related to a student; and (ii) are maintained by an educational agency or institution or by a person acting for such agency or institution.” (Emphasis added.) In Pioneer Press, ¶ 27, we noted that several jurisdictions had interpreted the term “education records” to exclude disciplinary records. However, since that decision, as the Commissioner and amicus United States point out, not only have FERPA regulations been broadened, but courts have recognized that disciplinary records constitute “education records” under FERPA. See State ex rel. ESPN, Inc. v. Ohio State Univ., 970 N.E.2d 939, 946-47 (Ohio 2012) (“we agree with the Sixth Circuit and hold that the [student disciplinary] records here generally constitute ‘education records’ subject to FERPA.... The records here—insofar as they contain information identifying student-athletes—are directly related to the students”). FERPA regulations also now confirm that disciplinary records fall within the purview of the Act, authorizing limited, non-consensual release of student disciplinary records in certain circumstances. See, e.g., 34 C.F.R. § 99.31(a)(13) & (14). Based upon the understanding that the term “education records” encompasses disciplinary records, the Commissioner correctly asserted that the records at issue here fall under the application of FERPA.
¶23 It is also apparent to us that the Commissioner, as Chief Executive Officer of the Montana University System (MUS), was properly cognizant of the heavy strings that FERPA attached to the MUS’ federal funding. Although FERPA has been characterized as “spending legislation,” we find Krakauer’s argument that it “prohibits nothing” delusive. FERPA is more than mere words in the wind. As outlined above, the University, a unit of the MUS, promised to abide by FERPA’s directives in exchange for federal funding. By signing the Program Participation Agreement, the University acknowledged the potential consequence of loss of federal funding in the event that it violated FERPA. See United States v. Miami Univ., 294 F.3d 797, 808 (6th Cir. 2002) (“Even in the absence of statutory authority, the United States has the inherent power to sue to enforce conditions imposed on the recipients of federal grants. ‘Legislation enacted pursuant to the spending power[, like the FERPA,] is much in the nature of a contract: in return for federal funds, the States agree to comply with federally imposed conditions.’ ”) (citing Pennhurst State Sch. & Hosp. v. Halderman, 451 U.S. 1, 101 S. Ct. 1531 (1981)). Whether or not FERPA explicitly prohibits state action, the financial risk it imposes upon MUS for violation of the statute is a real one. As the Commissioner stated, “The MUS should not be put in the position of predicting what decisions might be made by the federal government.”
b. Applicability of FERPA to the Subject Documents
¶24 FERPA prohibits institutions from having a “ ‘policy or practice of permitting the release of education records (or personally identifiable information contained therein ...) of students without the written consent of the students or their parents.’ ” Miami Univ., 294 F.3d at 806 (internal brackets omitted) (citing 20 U.S.C. § 1232g(b)(1)). The regulation defines “Personally Identifiable Information” to include information such as a student’s name, family names, date of birth, or “other information that, alone or in combination, is linked or linkable to a specific student that would allow a reasonable person... to identify the student with reasonable certainty).]” 34 C.F.R. § 99.3 (see “Personally Identifiable Information” at (a)-(f)). Since our decision in Pioneer Press, this definition has been expanded to include “I i Information requested by a person who the educational agency or institution reasonably believes knows the identity of the student to whom the education record relates.” 34 C.F.R. § 99.3 (see “Personally Identifiable Information” at (g)). The records in question facially fall within the restrictions of FERPA, and the Commissioner rightly considered FERPA’s requirements in determining whether to release them. As noted by amicus United States, “I Wlhere a request targets education records relating to a particular student, identified by name, FERPA’s protections unquestionably apply.” Under these provisions, had the Commissioner released the documents that Krakauer originally requested, using the specific student’s name, he would have violated the statute. FERPA and its accompanying regulatory scheme, including its expanded definition of “Personally Identifiable Information,” prohibited the unilateral release of the requested documents by the Commissioner, as Krakauer clearly knew the identity of the student that he named specifically in his request.
c. Exceptions Permitting Release Under FERPA
¶25 While FERPA generally prohibits the release of student educational records and personally identifiable information in those records, the records do not necessarily recede into the recesses of Chateau d’lf, never to see the light of day. FERPA contains several non-consensual exceptions that permit an institution to release educational records. See, e.g., 20 U.S.C. § 1232g(b)(l)(c); 20 U.S.C. § 1232g(b)(3).
¶26 Krakauer argues that the requested records must be made available under the exception that provides for release of the final results of a disciplinary proceeding “if the institution determines as a result of that disciplinary proceeding that the student committed a violation of the institution’s rules or policies with respect to such crime or offense.” 20 U.S.C. § 1232g(b)(6)(B). He argues that the exception “explicitly authorizes disclosure of records related to the Commissioner’s decision since it is, undisputedly, the ‘final result’ of the [MUSJ’s disciplinary proceeding against [the named student].” The information permitted to be released under this exception is limited, as “final results” include “only the name of the student, the violation committed, and any sanction imposed by the institution on that studentl, I” and other information, including “the name of any other student, such as a victim or witness,” can only be released upon the written consent of those other persons. 20 U.S.C. § 1232g(b)(6)(C)(i)-(ii). As noted by the Commissioner, this narrow exception permits release of limited information about “a violation” of certain University rules, and the sanction imposed. Thus, if no violation was found to have occurred, this exception, by its own terms, would not apply. The record before us here does not indicate whether the Commissioner ultimately held that a violation occurred, and thus, we are unable to now determine whether this exception authorized release of limited information related to Krakauer’s request. However, upon remand and after conducting an in camera review of the records, the District Court may consider the applicability of this exception along with the other considerations set forth below.
¶27 Additionally, FERPA authorizes release of personally identifiable information in education records when “such information is furnished in compliance with judicial order, or pursuant to any lawfully issued subpoena, upon condition that parents and the students are notified of all such orders or subpoenas ....” 20 U.S.C. § 1232g(b)(2)(B); 34 C.F.R. § 99.31(a)(9)(i). This exception broadly permits release of personally identifiable information pursuant to a “judicial order, or pursuant to any lawfully issued subpoena,” neither restricting the orders to those issued by particular, such as federal, courts nor limiting the legal basis or grounds for release of the records. 20 U.S.C. § 1232g(b)(2)(B). FERPA thus generally authorizes the release of records upon orders from courts acting properly within their jurisdiction. Krakauer’s petition sought an order pursuant to this exception.
d. Section 20-25-515, MCA
¶28 Notably, Montana law operates similarly to FERPA. Chapter 357, Laws of Montana (1973), was entitled “An Act Requiring Montana Colleges and Universities to Develop Procedures to Protect a Student’s Rightto Privacy Concerning... His College or University Records,” and stated it was “the legislature’s intent that an institution of the university system of Montana is obligated to respect a student’s right to privacy” in the student’s records. 1973 Mont. Laws 706. As codified from that 1973 Act, § 20-25-515, MCA, states:
A university or college shall release a student’s academic record only when requested by the student or by a subpoena issued by a court or tribunal of competent jurisdiction. A student’s written permission must be obtained before the university or college may release any other kind of record unless such record shall have been subpoenaed by a court or tribunal of competent jurisdiction.
State law thus also prohibits disclosure of student records, but, similar to FERPA, permits release when “subpoenaed by a court or tribunal of competent jurisdiction.” Section 20-25-515, MCA.
¶29 Krakauer argues that § 20-25-515, MCA, “does not condition a university’s disclosure of student records on a court order. It merely requires a subpoena, which in Montana can be effectuated at any time by an issuing party’s counsel of record.” The Commissioner replies that, under Krakauer’s interpretation, the statute would have no meaning because “a party would only need to file a lawsuit and request the records through subpoena,” and, in any event, the District Court did not issue a subpoena here.
¶30 The District Court ordered the records be made available for inspection in its Memorandum and Order, not by a subpoena. Answering the Commissioner’s argument, a reading of the statute as enacted in 1973 makes it clear that the Legislature intended student records would be subject to release following legal process conducted “by a court or tribunal of competent jurisdiction,” and did not intend to restrict that legal process exclusively to the issuance of a “subpoena,” the purpose of which is to compel a person’s attendance in a court or proceeding. See § 26-2-102, MCA. The statute is satisfied by the issuance of a court order upon completion of that legal process. Answering Krakauer’s argument, merely filing a lawsuit and requesting a records subpoena without a court’s consideration of a student’s privacy interests would fail to satisfy the statute’s requirements that student privacy be protected and that release of records be prohibited until a court or tribunal conducts that legal process. In Montana, the law regarding a student’s privacy is governed by the Montana Constitution, by which a student’s right to privacy in his or her records is balanced against the public’s right to know and obtain the records. That process must be completed before requested records can be released pursuant to the applicable judicial exceptions in FERPA and § 20-25-515, MCA.
¶31 3. How does Article II, Section 9 of the Montana Constitution apply to the request for release of the subject student records ?
¶32 The Commissioner challenges the District Court’s determination that the student records at issue should be released, arguing that the court “incorrectly shifted the balance between the right to privacy and the right to know in favor of Krakauer and his book deal and against the well-established privacy rights of the student named in his reque.stl. I” In response, Krakauer argues that the public’s right to know outweighs the privacy expectation in the records here because the specific student at issue has a diminished expectation of privacy, which the District Court correctly determined.
¶33 The District Court emphasized the public exposure of the events in question, noting that “the entire incident, from the initial administrative investigation to the conclusion of the criminal trial, is a matter of public record. The only aspect of the lengthy process that is not a matter of public record is the action taken by the Commissioner.” Citing approvingly of the U.S. District Court’s reasoning in Doe that “while there may be good reasons to keep secret the names of students involved in a University disciplinary proceeding, the Court can conceive of no compelling justification to keep secret the manner in which the University deals with those students,” the District Court determined that the subject student “does not have a reasonable expectation of privacy regarding the redacted records of the Commissioner,” and therefore ruled that the merits of public disclosure outweighed “the individual privacy rights of the student in this case.” The court did not conduct an in camera review of the records, but broadly ordered the Commissioner “to make available for inspection and/or copying” to Krakauer the records responsive to his request, subject to redaction of student identification information, presumably to be accomplished by the Commissioner.
¶34 Our concerns over the principles applied by the District Court in the constitutional balancing process, as well as the unique considerations under the federal and state law applicable to student records, compel us to reverse the District Court’s order and to remand this matter with instructions to the District Court to conduct an in camera review of the requested records, and to re-apply the constitutional balancing test to those records in accordance with the following analysis of the interests here at issue.
¶35 Article II, Section 9 of the Montana Constitution provides that “[n]o person shall be deprived of the right to examine documents ... 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.” As we have explained, “[t]his constitutional provision generally requires information regarding state government to be disclosed to the public, except in cases where the demand of individual privacy clearly exceeds the merits of public disclosure.” Associated Press, Inc., ¶ 24. Indeed, “our constitution gives a high priority to the public’s right to know.” Lence v. Hagadone Inv. Co., 258 Mont. 433, 447, 853 P.2d 1230, 1239 (1993), overruled on separate grounds by Sacco v. High Country Indep. Press, 271 Mont. 209, 896 P.2d 411 (1995). Krakauer asserts an interest in the process that the Commissioner employed in reviewing the student’s appeal and points out: “It cannot be denied that the entire rape culture at the University, and universities in general, has become one of increasing public import and concerní,]” and “The University’s compliance with its Title IX obligations is also one of public import and interest.” We acknowledge that Krakauer’s interest in the MUS’ policies in responding to and handling complaints of alleged sexual assault are important matters of concern to the public.
¶36 However, as the District Court correctly noted, “[T]he right to know is not absolute. It requires a balancing of the competing constitutional interests in the context of the facts of each case, to determine whether the demands of individual privacy clearly exceed the merits of public disclosure.” Associated Press, Inc., ¶ 24 (bold in original) (citations and internal quotation marks omitted). Pursuant to the Montana Constitution, we have established a two-part test in order to strike a balance between the needs for government transparency and individual privacy: (1) “whether the person involved had a subjective or actual expectation of privacy I, I” and (2) “whether society is willing to recognize that expectation as reasonable.” Great Falls Tribune Co. v. Day, 1998 MT 133, ¶ 20, 289 Mont. 155, 959 P.2d 508 (citation omitted).
¶37 In the context of this particular case, as discussed above, the national and state legislatures have taken the affirmative action of enacting legislation establishing the privacy interests of students in their records, as a matter of law. This action sets this case apart from others involving general privacy interests, and courts must honor the unique privacy protection legislatively cloaked around the subject records by factoring that enhanced privacy interest into the balancing test. We have implicitly recognized this interest in the past, Pioneer Press, ¶ 36, and since then, as noted above, stricter FERPA regulations have been adopted. We cite, merely for illustrative purposes because it does not contemplate Montana law, the phrasing of the increased burden that must be shown by a petitioner in order to access protected student records, provided by the United States District Court for the Middle District of Pennsylvania:
When a third-party seeks disclosure of education records covered by FERPA, the trial judge, in exercise of discretion, must conduct a balancing test in which the privacy interests of the students are weighed against the genuine need of the party requesting the information. While FERPA does not create a privilege, it does represent the strong public policy of protecting the privacy of student records. Courts balance the potential harm to the privacy interests of students with the importance and relevance of the sought information to resolving the claims before the court.
Moeck v. Pleasant Valley Sch. Dist., No. 3:13-CV-1305, 2014 U.S. Dist. LEXIS 142431, at *6-7 (M.D. Pa. Oct. 7, 2014) (internal citations omitted) (emphasis added). This enhanced privacy interest must be considered and factored into the constitutional balancing test on remand.
¶38 The District Court should not have concluded, without noting the unique facts here, that the student at issue “does not have a reasonable expectation of privacy regarding the redacted records of the Commissioner,” in reliance on Doe. The U.S. District Court in Doe was not presented, as here, with a records request explicitly identifying a particular student. Rather, the Doe case involved an unnamed litigant. While redaction may have served to protect the privacy interest of the unnamed litigant in Doe, and may well provide a privacy safety net in many situations, redaction of records provided in response to a request about a particular student may well be completely futile. As amicus United States points out, “when an educational institution is asked to disclose education records about a particular person, then no amount of redaction in [the] records themselves will protect the person’s identity, because the requestor knows exactly whom the records are about.” Obviously, records provided in response to a request naming a particular student will be about that student, whether redacted or not, and thus, there is more of machination than of cooperation in Krakauer’s offer, repeated at oral argument, to accept redacted records in response to his request. Consequently, on remand, the District Court must consider whether the futility of redaction affects the privacy analysis and the ultimate determination about what records can be released, if any.
¶39 We have recognized the efficacy of an in camera review of requested records by a district court to ensure that privacy interests are protected. Billings Gazette, ¶ 42; Jefferson Cnty. v. Mont. Standard, 2003 MT 304, ¶ 19, 318 Mont. 173, 79 P.3d 805 (“it is proper for a district court to conduct such an in camera inspection in order to balance the privacy rights of all of the individuals involved in the case against the public’s right to know.”). As these cases note, in camera review is particularly appropriate when the interests of third parties are involved. As the Commissioner stated at oral argument, the requested records could also include information pertaining to student members of the University Court, the victim, and other University students who acted as witnesses in the multiple-step process, and counsel hinted that the records are extensive. On remand, the District Court should review the requested documents in camera, and in the event it determines to release any document after conducting the balancing test, every precaution should be taken to protect the personal information about other persons contained in the documents.
¶40 We have stated that, when conducting the balancing test, a district court must consider all of the relevant facts of each case. See Associated Press, Inc., ¶ 24 (“It requires a balancing of the competing constitutional interests in the context of the facts of each case, to determine whether the demands of individual privacy clearly exceed the merits of public disclosure.”). Both parties argue at great length about various factors at issue here, such as the publicity that has followed this case, the source of the original request, the reasons behind the request, the named student’s status as an athlete at a publicly-funded university, and the prior litigation, all of which may be considered and weighted by the District Court when conducting the balancing test. We decline to address these issues individually in favor of the District Court’s application of the balancing test on remand.
¶41 Finally, the Commissioner argues that an order by the District Court requiring release of documents pursuant to Krakauer’s request would “create binding precedent” establishing a “policy or practice” of the MUS to release personally identifiable information, in violation of FERPA. However, we disagree. As noted in Miami University, “Once the conditions and the funds are accepted, the school is indeed prohibited from systematically releasing education records without consent.” 294 F.3d at 809 (emphasis added). A court order for release entered in one case does not require MUS to commence systematically releasing student records. Each case turns on its individual facts and circumstances, assessed and weighed through the balancing test. While court decisions do set precedent, MUS will nonetheless still evaluate each request on the basis of its individual facts, assessing the request in light of the precedent that has been created by litigation. This review is not a systematic policy or practice of releasing student records in violation of FERPA, which provides an exception for the release of such information “in compliance with judicial order, or pursuant to any lawfully issued subpoena[.]” 20 U.S.C. § 1232g(b)(2)(B). If the MUS believes a request cannot be fulfilled without violating FERPA and state protections, that decision can be reviewed by the courts following the filing of a petition by either MUS or the requestor.
CONCLUSION
¶42 Having concluded that the records in question in this case appear to fall under the “Personally Identifiable Information” protection granted by FERPA, and also having concluded that FERPA and state statute provide an exception for release of information pursuant to a lawfully issued court order, we remand this case to the District Court for an in camera review of the documents in question. After giving due consideration to the unique interests at issue in this case, as discussed herein, the District Court will re-conduct the constitutional balancing test and determine what, if any, documents may be released and what redactions may be appropriate. As noted above, the exception to FERPA that allows for release of documents pursuant to a court order requires advance notice to the affected student or parents, and a district court must comply with this directive before releasing protected information. See Opinion, ¶ 27 n. 6. Because we remand this case for further proceedings, the award of attorney fees is vacated.
¶43 Reversed and remanded for further proceedings consistent with this Opinion.
CHIEF JUSTICE McGRATH, JUSTICES BAKER, SHEA, WHEAT and DISTRICT JUDGE BROWN, sitting for JUSTICE COTTER concur.
The United States District Court ordered that the documents, including the letters and findings of the Dean, the University Court, and University President Royce Engstrom, would have students’ names, personal information, and pertinent dates redacted.
The Commissioner correctly points out that we noted the language of the Constitutional Convention in Shockley, ¶ 20. However, we cited to the Verbatim Transcript in order to illustrate the general goal of Article II, Section 9 of the Montana Constitution—namely, government transparency and accountability. While the quotes we cited were illustrative of the general purpose of the provision, resorting to these extrinsic sources was unnecessary for interpretation. Because the constitutional convention delegates ultimately used the word “person” when describing the right to know, and in light of the amended wording of the open record statutory scheme (referenced above), which now also uses the term “person,” we are not persuaded by the Commissioner’s argument.
The standing of an out-of-state resident has not previously been presented to the Court as a contested legal issue, but, as a practical matter, out-of-state corporate residents have often availed themselves of the rights under Article II, Section 9 of the Montana Constitution. See, e.g., Associated Press, Inc., a New York not-for-profit corporation registered to do business in Montana v. Mont. Dep’t of Revenue, 2000 MT 160, 300 Mont. 233, 4 P.3d 5.
We distinguished such holdings in Pioneer Press on the ground that releasing records with all personally identifiable information redacted would not violate FERPA. Pioneer Press, ¶ 31. However, Krakauer’s request listed a specific student by name, thus requiring the Commissioner’s office to necessarily release personally identifying information regarding the student. See 34 C.F.R. § 99.3 (see “Personally Identifiable Information” at (g)).
The District Court did not rule on the applicability of this exception.
The federal statute and corresponding regulation both require that such notice would be given to the student or parent in advance of the issuance of any subpoena or court order that might release such documents. Even if, as in this case, the subject student is not a party to the lawsuit, an opportunity is provided for the student (or parents) to be heard before such records are released. “The educational agency or institution may disclose information ... only if the agency or institution makes a reasonable effort to notify the parent or eligible student of the order or subpoena in advance of compliance, so that the parent or eligible student may seek protective action ....” 34 C.F.R. § 99.31(a)(9)(ii).
Section 20-25-516(1), MCA, also requires that academic records “be kept separate from disciplinary and all other records.”
We have previously recognized enhanced or reduced privacy interests as part of the determination of whether society would recognize the privacy interest as reasonable, depending on the circumstances. See Great Falls Tribune Co. v. Cascade Cnty. Sheriff, 238 Mont. 103, 107, 775 P.2d 1267, 1269 (1989) (“[L]aw enforcement officers occupy positions of great public trust. Whatever privacy interest the officers have in the release of their names as having been disciplined, it is not one which society recognizes as a strong right.”); Billings Gazette v. City of Billings, 2013 MT 334, ¶ 49, 372 Mont. 409, 313 P.3d 129 (‘Where the status of the employee necessitates a high level of public trust, such as an elected official or high level employee, the expectation of privacy in misconduct may be found to be significantly lower than for an administrative employee. Similarly, an employee may have a lower expectation of privacy in misconduct related to a duty of public trust, such as responsibility for spending public money or educating children.”).
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JUSTICE RICE
delivered the Opinion of the Court.
¶1 The mother of A.S. and A.M., M.L. (Mother), appeals from the order of the Eighth Judicial District Court, Cascade County, terminating her parental rights to the children. The father of A.S., T.S. (Father), likewise appeals from the District Court’s termination of his parental rights to A.S. We affirm. The parties raise the following issues:
1. Did the District Court abuse its discretion and violate Mother’s constitutional rights by terminating her parental rights to the children upon a finding that the conduct or condition rendering her unfit to parent was unlikely to change within a reasonable time?
2. Did the District Court lack jurisdiction and abuse its discretion in terminating Father’s parental rights to A.S. ?
FACTUAL AND PROCEDURAL BACKGROUND
¶2 A.S. is a girl born in 2011, and A.M. is a boy born in 2008. The Department of Public Health and Human Services, Child and Family Services Division, initially became involved with this family in October 2014 upon receiving separate reports from law enforcement that Father, Mother, and Mother’s boyfriend were involved with illegal drugs, specifically, methamphetamine. Upon a raid of Father’s residence in Great Falls, police found drug residue, drug paraphernalia, and indicators that a small child lived there. However, neither Father nor A.S. was found, and the Department commenced an effort to locate A.S. Two weeks later, on October 23, 2014, the Department located A.S. with Father’s parents, who reported that they had been contacted two days earlier by a woman whose last name they did not know, asking them to pick up A.S., which they did. They had heard nothing from either Father or Mother. The Department placed A.S. into protective custody, and received a report from law enforcement that active cases were pending against Mother and her boyfriend. Because the whereabouts of both parents remained unknown, they were served by publication with the Department’s petition for emergency services and for adjudication of A.S. as a youth in need of care.
¶3 On December 18,2014, Child Protective Specialist Sarah Peterson received a call from Mother, who stated she was now in Great Falls and wanted to pick up A.S. Peterson told Mother she needed to attend the show cause hearing set for the next day, but neither Mother nor Father appeared. The District Court received testimony from Peterson and police officers, and at the conclusion of the hearing, adjudicated A.S. as a youth in need of care based on her parents’ abandonment and physical neglect, and granted the Department temporary legal custody until a dispositional hearing in January 2015.
¶4 During these proceedings, the Department received a report concerning A.S.’s half-brother, A.M. Peterson learned that A.M. had been living with his father, W.M., on weekends and living with Mother’s mother, K.P., during the week, but that Mother and her boyfriend had begun living with K.P. as well. Mother’s boyfriend had been arrested and, based on concerns about Mother’s avoidance of the Department with regard to A.S., as well as reported concerns over her use of methamphetamine and association with other methamphetamine users, the Department placed A.M. in the care of his father and filed a petition for emergency services and adjudication of A.M. as a youth in need of care.
¶5 Neither Mother nor Father attended the dispositional hearing for A.S. on January 13, 2015. The court received testimony and approved the proposed treatment plans for Mother and Father, subject to either parent entering an objection and requesting a hearing within 15 days. Appointed counsel for both parents were in attendance. Mother’s counsel agreed to the treatment plan but Father’s counsel took no position because he had not had contact with Father. No objections were filed thereafter by either Mother or Father.
¶6 At the January 20, 2015, show cause hearing for A.M., Mother attended and A.M.’s father, W.M., stipulated to the relief sought. The court adjudicated A.M. as a youth in need of care and approved the same treatment plan for Mother as had been approved for her in A.S.’s case.
¶7 Mother had difficulty completing tasks under her treatment plans. She missed numerous appointments scheduled during the period of February-May 2015 for a chemical dependency evaluation, and one was never conducted. Therefore, recommendations from the chemical dependency counselor were not obtained or followed by Mother. She attended one parenting class after missing several appointments, only to fall asleep during class interactions. She was unable to repeat back any of the covered material. The District Court found that at this session Mother “was emotional, blamed others, and denied responsibility.” She did not provide samples for urinalysis or hair testing. She did not obtain employment during this time, stating she could not maintain employment because she suffered from epileptic seizures. Early in the process, Peterson considered a guardianship plan, under which A.S. would enter a guardianship with her paternal grandparents. However, Mother failed to comply with requests for information about her medical condition or sign medical releases, and this plan was abandoned. As of April 2015, Mother was failing her treatment plan. She did not regularly attend her appointments with Peterson or keep in contact with the Department. She did not complete any in-home parenting sessions. The District Court found that Mother had not provided a safe and stable environment for A.S. and A.M. Mother did attend seven of her eleven scheduled visits with the children. A.M. enjoyed these visits but was distraught over the visits that Mother failed to attend, and Peterson testified it did not appear that A.S. knew who Mother was. During a status hearing on April 7, 2015, Mother was admonished by the District Court that her failure to engage her treatment plan may result in termination of her parental rights.
¶8 Father was arrested and placed in jail multiple times during the time his treatment plan was in effect, which complicated his ability to work on his plan, including obtaining a chemical dependency evaluation. The District Court found he did not provide a safe and stable home environment for A.S., had not attended parenting classes, provided any samples for urinalysis, provided evidence of employment, or been in regular contact with the Department. Father wrote a letter to the Department from the jail, and attended several supervised visits with A.S. that went well. A.S. was glad to see him. He was not able to articulate to the Department a plan to care for A.S., and the District Court found that, in May 2015, Father “admitted to Ms. Peterson that he was not in a position to parent [A.S.].”
¶9 In July 2015, the Department filed a petition for termination of parental rights as to Mother for both A.S. and A.M., and as to Father for A.S. Both parents had to again be served by publication because neither of them had maintained contact with the Department and their whereabouts were unknown. The District Court conducted a hearing on the petition on September 1-2, 2015. The children’s guardian ad litem supported termination of both Mother and Father’s parental rights, arguing that neither parent had made a “sincere attempt” to satisfy their treatment plans, that Father had demonstrated no real interest in parenting A.S., and that “although no one is exactly clear where he is right now, it seems that he’s likely not incarcerated.... but he’s not here,” that Mother had continually relied upon a claimed medical condition for failing to comply with her treatment plan, without documentation of the condition, and that “it [] seems to be an all-purpose excuse to be trotted out whenever necessary to explain I didn’t comply ....”
¶10 The District Court entered orders terminating Mother and Father’s parental rights on October 2,2015. Mother and Father appeal.
STANDARD OF REVIEW
¶11 “This Court reviews a district court’s decision to terminate parental rights for an abuse of discretion.” In re K.A., 2016 MT 27, ¶ 19, 382 Mont. 165, 365 P.3d 478 (citing In re E.Z.C., 2013 MT 123, ¶ 19, 370 Mont. 116, 300 P.3d 1174) (citation omitted).
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 K.A., ¶ 19 (citing In re T.S., 2013 MT 274, ¶ 21, 372 Mont. 79, 310 P.3d 538) (citation omitted).
DISCUSSION
¶12 1. Did the District Court abuse its discretion and violate Mother’s constitutional rights by terminating her parental rights to the children upon a finding that the conduct or condition rendering her unfit to parent was unlikely to change within a reasonable time?
¶13 Mother argues the District Court’s determination that her unfitness to parent was unlikely to change within a reasonable time was not supported by sufficient evidence, thus violating the statutory requirements for termination of parental rights and her due process entitlement to “fundamentally fair procedures at all stages of the proceedings,” citing In re C.J., 2010 MT 179, ¶ 26, 357 Mont. 219, 237 P.3d 1282. Conceding that she failed to complete most of her treatment plan tasks, Mother argues this failure is explained by her “mistaken understanding that because an alternative plan was in the works that she did not need to work on her treatment plan,” referring to the guardianship plan briefly considered by Peterson early in the treatment plan process. Mother contends that “she believed her parental rights were not at risk and she did not need to complete the treatment plan.”
¶14 The District Court concluded that “I c Hear and convincing evidence establishes that [Mother’s] Treatment Plan ‘has not been successful’ in changing the conduct and conditions that render her unfit as a parent.... [Mother’s] ongoing emotional instability and self-absorption manifests itself in conduct that renders her unfit, unable, or unwilling to give [A.S.] and [A.M.] adequate parental care.” (Emphasis added.) The court further concluded that “[c]ontinuation of the parent-child relationship between these children and [Mother] will result in an ongoing risk of abuse or neglect to them.” These conclusions by the District Court demonstrate Mother’s problems were unchanging and continuing, and were fully supported by substantial evidence, detailed above. Mother was clearly going nowhere on her treatment plan or making any progress in addressing the life issues rendering her unfit to parent the children.
¶15 Mother’s assertion that a “misunderstanding” about a possible guardianship of A.S. led her to believe she did not need to complete her treatment plan is unpersuasive. That idea was considered and abandoned early in the process. There is no evidence that Mother was advised it was no longer necessary to complete her treatment plan; just the opposite, she was urged by the Department and admonished by the Court to complete it. Her attempts to complete some of the treatment plan tasks along the way, albeit feeble, belie her argument about a “misunderstanding.”
¶16 Mother argues that the eight-month period “between the treatment plan’s approval and the filing of the termination petition was too short to accurately determine [her] ability to become a more successful parent,” and this time was “insufficient” to assess her “likelihood of change.” The District Court determined in its October 2015 order that “[t]he best interests of [A.S.] and [A.M.] circumscribe the amount of time within which it is ‘reasonable’ to hope and wait for this conduct and these conditions to change.... [A.S.] has been in state custody since October of 2014. [A.M.] has been in custody since January 2015 and has been moved and replaced four times since then. These children cannot wait any longer.”
¶17 When considering whether the conduct or condition rendering the parents unfit is likely to change for purposes of the termination decision, “the court shall give primary consideration to the physical, mental, and emotional conditions and needs of the child.” Section 41-3-609(3), MCA. The District Court did so, and determined upon substantial evidence that the best interests of the children were not served by giving Mother more time. While parents dawdle, the clock ticks for children until it is unreasonable to wait any longer. Though warned, Mother avoided the tasks laid before her and instead, as found by the District Court, blamed others and shifted responsibility. The District Court did not err in terminating her parental rights.
¶18 2. Did the District Court lack jurisdiction and abuse its discretion in terminating Father’s parental rights to A.S. ?
¶19 Father argues that the District Court “lacked the jurisdiction to order the termination of Father’s parental rights as it did not make the statutory finding required by Mont. Code Ann. § 41-3-609(l)(f)(ii) that the conduct [or] condition rendering Father unfit was unlikely to change within a reasonable amount of time.” Father argues that this failure also violated his constitutional right to fundamentally fair procedures, including that each statutory element be supported by sufficient evidence, citing In re B.N.Y., 2003 MT 241, 317 Mont. 291, 77 P.3d 189, and In re Custody of M.W., 2001 MT 78, 305 Mont. 80, 23 P.3d 206.
¶20 To the extent that Father frames his argument as a jurisdictional issue, we have recently clarified that a court’s failure to follow statutory requirements in an abuse and neglect matter does not affect its subject matter jurisdiction. See In re K.B., 2016 MT 73, ¶ 12, 383 Mont. 85, 368 P.3d 722; In re B.W.S., 2014 MT 198, ¶ 13, 376 Mont. 43, 330 P.3d 467. Further, the case authority cited by Father concerned whether the subject children had been properly adjudicated as youths in need of care before custody could be awarded to the State, a threshold issue that is not present here. However, Father correctly notes that the District Court did not enter a finding stating that Father’s conduct or condition rendering him unfit was unlikely to change within a reasonable time, as required by § 41-3-609(l)(f)(ii), MCA.
¶21 The District Court determined that “Ic Hear and convincing evidence establishes that [Father’s] Treatment Plan ‘has not been successful’ in changing the conduct and conditions that render him unfit as a parent.... [H]is ongoing entanglement with the criminal law renders him unfit and unable to give [A.S.] adequate parental care.” (Emphasis added.) The court also determined that continuation of the parent-child relationship between Father and A.S. “will result in an ongoing risk of abuse or neglect to her.” (Emphasis added.) While it would have been preferable for the District Court to enter an express finding that Father’s condition rendering him an unfit parent was unlikely to change within a reasonable time, the court’s determinations here clearly incorporated the recognition that Father’s condition was continuing and would prevent him from being able to parent A.S. into the reasonable future. This case is appropriate for an implied finding that Father’s conduct or condition rendering him unfit to parent was unlikely to change with a reasonable time, pursuant to the doctrine of implied findings. See In re J.B., 2016 MT 68, ¶ 25, 383 Mont. 48, 368 P.3d 715 (“This doctrine holds that where ‘findings are general in terms, any findings not specifically made, but necessary to the determination, are deemed to have been implied, if supported by the evidence.’ ”) (citation omitted).
¶22 Father anticipates our use of an implied finding and argues preemptively that the termination of his parental rights “cannot stand even if the Court applies the doctrine of implied findings .... [T]he evidence presented by the Department does not support a finding that the conduct or condition rendering Father unfit was unlikely to change within a reasonable time.” However, we disagree. Throughout this matter, the most notable fact about Father has been his perpetual absence. In the beginning, he was absent when the Department was looking for A.S., despite the fact she was supposed to be residing with Father. He was absent when A.S. was located at the home of his parents, who had heard nothing from Father, and who had regained A.S. when a woman contacted them. He was absent at the initial hearings in A.S.’s case, and his attorney had no contact with him. His incarceration rendered him absent during periods when his treatment plan was in effect. He was absent during the termination hearing, when A.S.’s guardian ad litem noted, “no one is exactly clear where he is right now[.]” Father had to be served twice by publication. Our previous holding regarding likelihood of change is just as applicable here: “Father cannot benefit from his lack of involvement in this matter. The court may consider Father’s past conduct to determine that Father’s conduct likely would not change.” In re R.M.T., 2011 MT 164, ¶ 38, 361 Mont. 159, 256 P.3d 935 (citing In re D.A., 2008 MT 247, ¶ 23, 344 Mont. 513, 189 P.3d 631). Here, we can conclude from Father’s past conduct, including his failure to complete his treatment plan, that it is likely that Father will continue to be absent, will be unable to change within the reasonable future, and will be unable to parent A.S. Based on this record, and the substantial evidence before the District Court, we conclude further that the court did not abuse its discretion in determining that termination of Father’s rights was in A.S.’s best interests.
¶23 Affirmed.
CHIEF JUSTICE McGRATH, JUSTICES SHEA, WHEAT and BAKER concur.
Two cases, one for each child, were handled in parallel proceedings in the District Court, including a simultaneously-conducted termination hearing, and identical original orders were entered in each proceeding. Separate appeals were filed and, upon an unopposed motion by counsel for Mother, the appeals were consolidated by order of this Court on January 15, 2016.
Father W.M.’s parental rights to A.M. were not terminated by the District Court in this proceeding, and his case was scheduled for further hearings. W.M. is not before us as a party in this appeal.
These determinations are made pursuant to § 41-3-609(2), MCA.
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JUSTICE SHEA
delivered the Opinion of the Court.
¶1 Charles Dustin Rickett appeals the order of the Eighteenth Judicial District Court, Gallatin County, denying Rickett’s request to order sheriff s deputies to remove a security brace from his leg during trial. We address the following issue:
Whether the District Court abused its discretion by requiring Rickett to wear a leg brace during trial.
¶2 We affirm.
PROCEDURAL AND FACTUAL BACKGROUND
¶3 On July 27, 2012, the State of Montana charged Rickett with Aggravated Kidnapping, Burglary, Intimidation, and Escape. The State alleged that Rickett escaped from his incarceration at the Gallatin County Re-Entry Facility’s pre-release center, traveled to Manhattan, Montana, and kidnapped his former foster mother to gain access to the safe at the Bay Bar and Grill in Bozeman, where she worked as a bookkeeper.
¶4 The District Court held a jury trial from February 25 through February 27, 2014. Rickett appeared in person at the trial. He was wearing street clothes with a leg brace on his right leg underneath his pants. Before jury selection, Rickett asked the Court to order sheriffs deputies to remove his leg brace. Rickett’s counsel stated that the leg brace “creates a large bulge” in Rickett’s pants leg, and said he was “concerned” that if Rickett stood up before the jury, he would “fiddle with [the brace], and the jury’s going to take obvious note of this large leg brace.” The District Court denied Rickett’s request, finding that the leg brace was “just a bulge underneath [Rickett’s] pants” and “the minimum security that the Sheriff requires for [bringing] prisoners back and forth.” However, the District Court told Rickett he could raise the issue again before standing or walking in front of the jury. Before taking the stand on the last day of trial, Rickett again requested that the Court order sheriff s deputies to remove his leg brace. The District Court denied Rickett’s request, stating: “I believe that [the leg brace] is concealed enough that... it does not prejudice Mr. Rickett.”
¶5 On February 27, the jury found Rickett guilty of Aggravated Kidnapping, Intimidation, and Escape. The District Court designated Rickett a persistent felony offender and sentenced him to the Montana State Prison for forty years with no time suspended. Rickett appeals the District Court’s denial of his request to order sheriffs deputies to remove his leg brace.
STANDARDS OF REVIEW
¶6 We review a district court’s decision to restrain a criminal defendant during trial for abuse of discretion. State v. Jackson, 2009 MT 427, ¶ 57, 354 Mont. 63, 221 P.3d 1213. “Notwithstanding this deferential standard, however, judicial discretion must be guided by the rules and principles of law; thus, our standard of review is plenary to the extent that a discretionary ruling is based on a conclusion of law.” State v. Price, 2006 MT 79, ¶ 17, 331 Mont. 502, 134 P.3d 45. In such circumstances, “we must determine whether the court correctly interpreted the law.” Price, ¶ 17.
DISCUSSION
¶7 Whether the District Court abused its discretion by requiring Rickett to wear a leg brace during trial.
¶8 The Fifth Amendment of the United States Constitution and Article II, Section 17 of the Montana Constitution entitle criminal defendants to appear before a jury free of shackles and other physical restraints. State v. Herrick, 2004 MT 323, ¶¶ 12, 15, 324 Mont. 76, 101 P.3d 755. However, this right is not absolute, and a trial court’s decision to restrain a defendant during trial is not per se unconstitutional. Herrick, ¶ 12. In Herrick, we adopted a two-step test for determining whether a trial court abused its discretion in restraining a criminal defendant during trial. Herrick, ¶ 15. First, the trial court “must be persuaded by compelling circumstances that some measure is needed to maintain the security of the courtroom.” Herrick, ¶ 14. Second, the court “must pursue less restrictive alternatives before imposing physical restraints.” Herrick, ¶ 14. A trial court’s decision to restrain a defendant without first engaging in the two-step Herrick analysis constitutes an abuse of discretion. State v. Hartsoe, 2011 MT 188, ¶ 22, 361 Mont. 305, 258 P.3d 428.
¶9 In this case, the District Court did not apply the Herrick test before denying Rickett’s request to remove his leg brace. Therefore, the District Court abused its discretion. However, our inquiry does not end here. Rather, once we have established that a trial court has violated either prong of Herrick, we next determine whether the court’s error is structural in nature. Hartsoe, ¶ 31. “A structural error is one ‘which so infect! s I and contaminate^] the framework of the trial as to render it fundamentally unfair, requiring automatic reversal.’” Hartsoe, ¶ 31 (quoting State v. Charlie, 2010 MT 195, ¶ 40, 357 Mont. 355, 239 P.3d 934) (changes in original). When a defendant is physically restrained, a structural error occurs if the impact of the physical restraint on the defendant or the defense is “so pervasive that the error is not susceptible to analysis under harmless error standards.’’ Hartsoe, ¶ 31.
¶10 In Hartsoe, we concluded that the District Court’s error of allowing a defendant to be observed by the jury while shackled to a chair without engaging in the Herrick test did not constitute structural error. Hartsoe, ¶ 33. We reasoned that the court’s error did not inhibit the defendant’s ability to conduct his defense because the defendant was shackled for only a portion of voir dire and remained free from shackles for the remainder of his trial. Hartsoe, ¶ 33. In contrast to Hartsoe, Rickett’s leg brace was underneath his clothing and not immediately visible. Although Rickett’s counsel argued that the brace created a “large bulge” in Rickett’s pant leg and would cause him to limp while walking, we cannot discern from the record whether the jury suspected Rickett was wearing a restraint device. Moreover, at the beginning of the trial, Rickett’s counsel informed the jury that Rickett was an inmate with the Montana Department of Corrections, and that he had escaped from the pre-release center. While he was on the stand, Rickett himself told the jury that he escaped from the pre-release center. Given the relatively unobtrusive nature of the leg brace, and Rickett’s admission to being an inmate and an escapee, we cannot conclude that the impact of the leg brace on Rickett or his defense is so pervasive that the District Court’s error is not susceptible to a harmless error analysis. See Hartsoe, ¶ 31. Our review of the record thus leaves us convinced that the District Court’s error is not structural.
¶11 Once we have established that a trial court’s error is not structural, we next consider whether the error is harmless. Hartsoe, ¶ 32. Under the harmless error analysis, the State must demonstrate that there is no reasonable possibility that the trial court’s failure to adhere to Herrick prejudiced the defendant. Hartsoe, ¶ 32. “In other words, the State has the burden of persuading the Court that the violation was harmless in light of the interests that the right to remain free of physical restraints was designed to protect.” Hartsoe, ¶ 32. Visible restraints create a “high risk of prejudice” because they indicate that the court believes there is a “need to separate the defendant from the community at large, creating an inherent danger that [the] jury may form the impression that the defendant is dangerous or untrustworthy.” Hartsoe, ¶ 32 (quoting Dyas v. Poole, 317 P.3d 934, 937 (9th Cir. 2002)) (changes in original). Visible restraints also may prejudice the defendant by undermining the presumption that the defendant is innocent. Hartsoe, ¶ 32. Conversely, if a jury never sees the restraints, the presumption of innocence is not undermined and the court’s error is harmless. See Castillo v. Stainer, 983 F.2d 145, 149 (9th Cir. 1992) (holding that a waist chain could not be seen by the jury and, therefore, “the court’s error was harmless beyond a reasonable doubt”).
¶12 The District Court determined that Rickett’s leg brace was not visible, and there is no indication in the record that the jury noticed it. However, even if the jury did notice Rickett’s brace, we find persuasive the Ninth Circuit’s reasoning, in Walker v. Martel, 709 F.3d 925, 942 (9th Cir. 2013), that a leg brace “only suggested [the defendant’s] custody status, not a proclivity for violence, as his hands were unencumbered.” Rickett admitted to being an inmate and an escapee, and leg braces are designed to prevent rapid movement. Assuming the jury did, in fact, notice the brace, this would only confirm what Rickett had himself acknowledged—his custody and escapee status; it does not suggest a proclivity for violence. By the same reasoning, Rickett’s presumption of innocence was not undermined. At most, the leg brace might indicate that Rickett was a potential flight risk. Such an indication would not undermine Rickett’s presumption of innocence because Rickett admitted to being an escapee. We therefore conclude there is no reasonable possibility that Rickett was prejudiced by the District Court’s violation of Herrick. See Hartsoe, ¶ 32. Accordingly, the District Court’s error was harmless.
CONCLUSION
¶13 We affirm the District Court’s denial of Rickett’s request to order sheriffs deputies to remove a security brace from his leg during trial.
JUSTICES COTTER, WHEAT, BAKER and McKINNON concur.
The District Court dismissed the Burglary charge mid-trial.
|
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Affirmed
Dist. 10 (Judith Basin)
|
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Affirmed & Remanded
Dist. 20 (Lake)
|
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JUSTICE BAKER
delivered the Opinion of the Court.
¶1 Hilario Martin Velasquez was arrested for possession of drugs and drug paraphernalia in September 2013. He was jailed in Roosevelt County for over ten months while he awaited testing results from the State Crime Lab. Finally, at the end of July 2014, a Roosevelt County jury convicted Velasquez of both charges. The trial court rejected Velasquez’s argument that he was denied a speedy trial. We reverse and remand for dismissal of the charges.
PROCEDURAL AND FACTUAL BACKGROUND
¶2 Velasquez was riding in the back seat of a car that was stopped on September 25, 2013, when a law enforcement officer suspected the driver of being under the influence of alcohol or drugs. The arresting officer found crystals in a cigarette pack located on the dashboard between the driver and the front-seat passenger. The crystals field-tested positive for methamphetamine. Velasquez had a methamphetamine pipe in his pocket and admitted to smoking methamphetamine earlier that evening. The driver of the car also was arrested; the front-seat passenger, however, was not. Velasquez was charged with felony possession of a dangerous drug with intent to distribute, in violation of § 45-9-103, MCA, and with misdemeanor criminal possession of drug paraphernalia, in violation of § 45-10-103, MCA.
¶3 The District Court set trial for January 2014. Several weeks before trial, the State moved to continue the trial because the drug testing results were not yet complete and the State Crime Lab estimated nine months of backlog for drug analysis. Three days later, the District Court ordered the continuance. Velasquez objected to the continuance, asserting his speedy trial right.
¶4 Trial was re-set for March 2014. The State moved for continuance on the same basis as before and the District Court granted its request. The court granted the State’s third motion to continue in May 2014. About two weeks before the July 31 trial date, Velasquez moved to dismiss the case for lack of a speedy trial. Velasquez was unable post the $5,000 bail and remained in the Roosevelt County jail until trial. By then, he had been incarcerated for 309 days.
¶5 At the hearing on Velasquez’s motion to dismiss, the court analyzed the alleged speedy trial violation under the factors articulated in State v. Ariegwe, 2007 MT 204, ¶¶ 106-12, 338 Mont. 442, 167 P.3d 815. The court concluded that the entire delay was institutional delay attributable to the State and that Velasquez had timely asserted his speedy trial right. The court determined, however, that although the question of prejudice was “close,” it did not tip the balance in Velasquez’s favor. The court orally denied Velasquez’s motion and the case proceeded to trial. The jury found Velasquez guilty of both charges.
STANDARD OF REVIEW
¶6 A speedy trial violation presents a question of constitutional law that we review de novo to determine whether the court correctly interpreted and applied the law. State v. Zimmerman, 2014 MT 173, ¶ 11, 375 Mont. 374, 328 P.3d 1132. We review the court’s underlying factual findings for clear error. Zimmerman, ¶ 11. 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 the court made a mistake.” State v. Brave, 2016 MT 178, ¶ 6, 384 Mont. 169, 376 P.3d 139.
DISCUSSION
¶7 Did the District Court err in denying Velasquez’s motion to dismiss for lack of a speedy trial ?
¶8 A criminal defendant has a constitutional right to speedy trial under the Sixth and Fourteenth Amendments to the United States Constitution and Article II, Section 24 of the Montana Constitution. Ariegwe, ¶ 20. When an accused claims that right has been violated, we consider (1) the length of the delay, (2) the reasons for the delay, (3) the accused’s responses to the delay, and (4) prejudice to the accused as a result of the delay. Zimmerman, ¶ 14. We balance these factors to determine whether the right to a speedy trial has been violated. State v. Stops, 2013 MT 131, ¶ 19, 370 Mont. 226, 301 P.3d 811. No single factor is dispositive; the factors are related and must be considered together with any other relevant circumstances. Ariegwe, ¶ 112. “[E]ach factor’s significance will vary from case to case.” Ariegwe, ¶ 105.
(1) Length of the Delay
¶9 We determine initially whether the length of the delay is at least 200 days, “which is the trigger date for conducting the four-factor balancing test.” Zimmerman, ¶ 13. In this case, the District Court determined—and the parties agree—that the total length of the delay was 307 days, 107 days beyond the trigger date. The longer the delay stretches beyond the 200-day trigger date, “the stronger the presumption is under Factor Four that the accused has been prejudiced by the delay, and the heavier the state’s burden is under Factor Two to provide valid justifications for the delay.” Zimmerman, ¶ 14 (citing Ariegwe, ¶¶ 49, 61).
¶10 In Zimmerman, we concluded that an 89-day delay beyond the trigger date did not substantially increase the State’s burden or the presumption of prejudice. Zimmerman, ¶ 14; accord State v. Charlie, 2010 MT 195, ¶¶ 50, 59, 357 Mont. 355, 239 P.3d 934 (holding that a 70-day delay beyond the trigger date was not enough to “show a particularly compelling justification for the delay”). But see State v. Billman, 2008 MT 326, ¶ 18, 346 Mont. 118, 194 P.3d 58 (concluding that a 78-day delay beyond the trigger date “presents a considerable amount of delay, and we conclude that the State’s justifications for the delay must be compelling and that it must make a persuasive showing that the delay did not prejudice Billman”). In Ariegwe, a 208-day delay beyond the trigger date required the State to “provide particularly compelling justifications for the delay under Factor Two; and under Factor Four, the State must make a highly persuasive showing that Ariegwe was not prejudiced by the delay, while the quantum of proof that may be expected of Ariegwe under this factor is correspondingly lower.” Ariegwe, ¶ 123; accord State v. Rose, 2009 MT 4, ¶ 46, 348 Mont. 291, 202 P.3d 749 (holding that a 307-day delay beyond the trigger date “substantially” increased the State’s burden under Factor Two, “the presumption that pretrial delay prejudiced Rose is increased, and the quantum of poof expected of Rose under Factor Four is substantially decreased”).
¶11 The District Court did not address whether the extent of the delay increased the presumption of prejudice or the State’s burden to justify the delay. Relying on Zimmerman, the State argues that the time elapsed days beyond the trigger date “is not particularly long” and therefore the State’s burden and the presumption of prejudice are “relatively low.” Velasquez contends that presumption of prejudice “is intensified” by the delay of more than 100 days beyond the trigger date.
¶12 Based on our case law we conclude that a 109-day delay beyond the trigger date occupies a middle ground between Zimmerman and Ariegwe. In other words, in this case, it increases the State’s burden under Factor Two and Factor Four slightly more than it did in Zimmerman, but less than it did in Ariegwe. Accordingly, the State’s burden to provide justifications for the delay in this case is higher, and the State must make a more persuasive showing that Velasquez was not prejudiced by the delay, “while the quantum of proof that may be expected of [Velasquez] under this factor is correspondingly lower.” Ariegwe, ¶ 123.
(2) Reasons for the Delay
¶13 In considering the reasons for the delay, “we must identify each period of the delay, attribute the delay to the responsible party, and then assign weight to each period based on the specific cause and motive for the delay.” State v. Couture, 2010 MT 201, ¶ 71, 357 Mont. 398, 240 P.3d 987. “The prosecution bears the burden of explaining pretrial delays.” Zimmerman, ¶ 15. Delay caused by the State’s bad faith weighs “heavily” against it. Ariegwe, ¶ 67. Delay caused by negligence or lack of diligence occupies a middle ground, but it still “ ‘falls on the wrong side of the divide between acceptable and unacceptable reasons for delaying a criminal prosecution once it has begun.’ ” Ariegwe, ¶ 69 (quoting Doggett v. United States, 505 U.S. 647, 657, 112 S. Ct. 2686, 2693 (1992)). “[T]he more delay in bringing the accused to trial that is due to lack of diligence or other ‘unacceptable’ reasons, the more likely the accused’s speedy trial right has been violated.” Ariegwe, ¶ 72. Institutional delays are delays “inherent in the criminal justice system and caused by circumstances largely beyond the control of the prosecutor and the accused, such as overcrowded court dockets.” Couture, ¶ 72. Institutional delay is attributable to the State, “but weighs less heavily against it than delay caused by bad faith, negligence, or lack of diligence.” Couture, ¶ 72.
¶14 The District Court concluded that there “was no basis at all for delay caused by the defense” and that the entire delay was attributable to the State as institutional delay. The court noted, “It’s the fact that the crime lab ... is slow on getting things.” The court observed also, “[W]hen I look at the way the crime lab is done, I think [the defense’s] argument of negligence and lack of due diligence by the crime lab is a very good argument, but I don’t know that it quite goes far enough for me to pull the trigger saying it’s too far.”
¶15 The parties do not dispute that the period of time from Velasquez’s arrest to the first trial is attributable to the State as institutional delay. The State argues that the period of delay from the first originally scheduled trial date to the actual trial properly was classified by the District Court as institutional delay. Relying on Ariegwe, the State claims that a “delay from waiting for test results from the Crime Lab is institutional.” Pointing out that the prosecution “had no control over when the Crime Lab would test the substance,” the State faults Velasquez for “waitfing] until July 28,2014, to suggest in the district court that the State should inquire about the backlog at independent laboratories.”
¶16 Velasquez argues that the District Court erred in classifying all of the delay as institutional delay. He contends that “the 196-day delay between the originally scheduled trial date and the actual trial was caused by the State’s lack of diligence.” Velasquez suggests that as soon as the State learned that the crime lab would take nine months to conduct the drug testing, it should have pursued “alternative, timely testing,” and that its failure “even to consider alternative testing sites” was negligent. “The State’s choice to do nothing,” Velasquez contends, “was not a circumstance beyond the prosecutor’s control and is not mere institutional delay.” Additionally, Velasquez argues that he had no duty to suggest the use of independent labs because “it is well settled that a defendant has no duty to advance his own prosecution.”
¶17 In this case, we identify two periods of delay: (1) the 113-day delay between Velasquez’s arrest and the first scheduled trial date and (2) the 196-day delay between the first scheduled trial date and the actual trial date. We agree with the parties that the first period of delay was institutional delay attributable to the State.
¶18 With respect to the second period of delay, keeping in mind that the State bears a higher burden to provide justifications for the delay, we conclude that the delay should be attributed to the State for lack of diligence. The prosecutor’s constitutional obligation to try the defendant in a timely manner “requires a good faith, diligent effort to bring him to trial quickly.” Zimmerman, ¶ 18. In Ariegwe, 28-day and 56-day periods of delay were the result of the defendant’s motion to continue on grounds that the parties were still waiting for test results from the crime lab. Ariegwe, ¶¶ 132-33. We concluded that such a delay was institutional. Ariegwe, ¶¶ 132-33. Another period of delay in Ariegwe resulted from the prosecution’s motion to continue, which revealed that the motion “was necessitated by the State’s delay in delivering evidence for testing at the crime lab.” Ariegwe, ¶ 129. That delay, we concluded, was attributable to the State due to lack of diligence. Ariegwe, ¶ 129. We observed that the failure to provide discovery or send evidence to a crime lab in a timely manner “reflects a significant lack of diligence.” Ariegwe, ¶ 154.
¶19 In the present case the State’s inaction leads us to conclude that it was not diligent. The State was aware of the nine-month backlog at the crime lab by December 2013, when it first moved to continue Velasquez’s trial. In January 2014, Velasquez raised concerns about how the testing delay might affect his speedy trial right. At the evidentiary hearing, a criminal investigator for the Roosevelt County Attorney’s Office who had been working on Velasquez’s case testified that when she emailed the crime lab to see if the drug testing had been initiated, she was “repeatedly told” that it would take nine months. Despite the State’s awareness of the backlog and Velasquez’s concerns, the record reveals no evidence that the State attempted to pursue any possible alternate testing locations after learning of and “repeatedly” confirming the nine-month delay. To be sure, the backlog at the State Crime Lab likely was “caused by circumstances largely beyond the control of the prosecutor.” Couture, ¶ 72. But the failure to inquire into the availability of independent labs was squarely in the State’s control. Mere allusion to crime lab backlog is not sufficient justification where the State has not investigated any other options. See State v. Fife, 193 Mont. 486, 490, 632 P.2d 712, 715 (1981) (“Mere allusion to good faith misunderstanding and crowded court calendars is not sufficient justification where the State has not been diligent.”).
¶20 The State’s inaction in this case is similar to the State’s failure to “send[ ] evidence to the crime lab in a timely manner.” Ariegwe, ¶ 154. By simply accepting the nine-month delay and failing to potentially expedite the process by seeking out independent labs, the State showed dilatory inaction in moving the case toward trial. That Velasquez “waifled] until July 28,2014, to suggest in the district court that the State should inquire about the backlog at independent laboratories” is immaterial. “[T]he accused is under no obligation to ensure diligent prosecution of the case against him, and has no duty to bring himself to trial.” Zimmerman, ¶ 24 (internal citations omitted). The State knew for more than seven months that waiting for the results would cause significant delay in bringing Velasquez to trial. Had the prosecution inquired and determined that an alternate testing source was not reasonably available, the delay likely would be considered merely institutional. But its failure to even inquire falls beneath an acceptable threshold of diligence. We thus conclude that the 196-day delay between the first scheduled trial date and the actual trial date is attributable to the State and “falls on the wrong side of the divide between acceptable and unacceptable reasons for delaying a criminal prosecution once it has begun.” Ariegwe, ¶ 69.
(3) The Accused’s Responses to the Delay
¶21 In evaluating the accused’s responses to the delay, we consider the “totality of the accused’s responses” to ascertain whether the accused “actually wanted” a speedy trial. Zimmerman, ¶ 22. “[T]he issue is not simply the number of times the accused acquiesced or objected!;] Ir lather, the focus is on the surrounding circumstances.” Zimmerman, ¶ 22.
I There is no magical time for assertion of the right to a speedy trial which should be weighed more favorably to the defendant than some other time. So long as the defendant asserts his or her right to a speedy trial by a motion to dismiss on speedy trial grounds filed prior to the time of trial, we conclude that the defendant has satisfied the third-prong ... and that further analysis of that prong is not only unnecessary, but inappropriate.
Ariegwe, ¶ 137 (citation omitted). “The defendant’s assertion of his speedy trial right ... is entitled to strong evidentiary weight in determining whether the defendant is being deprived of the right.” Ariegwe, ¶ 78 (citing Barker v. Wingo, 407 U.S. 514, 531-32, 92 S. Ct. 2182, 2192-93 (1972)). It “serves as a gauge of the weights the court should assign to the other three factors in the balancing.” Ariegwe, ¶110.
¶22 Although the District Court concluded that Velasquez had affirmatively asserted his right to a speedy trial, Velasquez argues that the court “erred in not ascribing any weight to this factor.” Velasquez emphasizes that he objected to the State’s motion to continue in January, asserting his right to a speedy trial and “noting that he [had] already been incarcerated for 104 days.” His objection, Velasquez contends, “put the State on notice, nearly a hundred days before crossing the 200-day speedy trial trigger, that he wanted a speedy trial and that the State’s delaying his trial for the Montana State Crime Lab testing would violate his right to a speedy trial.” Velasquez points out that he “never asked for a single continuance” and that “[n]one of the State’s three motions to continue stated whether the State had contacted defense counsel concerning the motions or whether the defense agreed or objected to the continuances.” Velasquez argues that his “timely insistence” on a speedy trial “weighs heavily” in his favor with respect to this factor and “adds weight” in his favor to the other factors.
¶23 In its response to Velasquez’s motion to dismiss, the State conceded that Velasquez had “timely asserted his right before the commencement of the trial, as required in Ariegwe." For the first time on appeal, however, the State argues that “[although he objected to a continuance early on, other circumstances indicate that Velasquez did not actually want to be brought to trial promptly.”
¶24 It is well established that “a party may not raise new arguments or change its legal theory on appeal because it is fundamentally unfair to fault the trial court for failing to rule on an issue it was never given the opportunity to consider.” State v. Hendershot, 2009 MT 292, ¶ 31, 352 Mont. 271, 216 P.3d 754 (citations and internal quotations omitted). Because the State conceded in the trial court that Velasquez had “timely asserted his right” under Factor Three, we decline to address its arguments with respect to this factor on appeal.
¶25 We conclude that the District Court determined correctly that Velasquez had asserted his speedy trial right. He objected to the State’s first motion to continue and moved to dismiss the charges against him for lack of a speedy trial before proceeding to trial. That Velasquez did not object to the State’s other two motions to continue is not surprising. The record reveals that both motions were filed on a Friday and granted the following Monday. Based on the “totality of [Velasquez’s] responses,” it is clear that he “actually wanted” a speedy trial. Zimmerman, ¶ 22.
¶26 We agree with Velasquez, however, that the court erred in failing to assign any weight to Factor Three. The District Court’s comments on Factor Three were frugal: “As far as your assertion of your right, you guys asserted your right. I got no argument with that one.” When balancing the factors the court did not consider Factor Three “together with the other three factors of the balancing test” as required by Ariegwe. Ariegwe, ¶ 79. The court referred only to Factors Two and Four: “[W]hen we get down, right down to the balancing, you know, the institutional delay doesn’t get weighed very heavily. I don’t know that the prejudices to the defendant outweigh that and make it so that I need to dismiss for lack of a speedy trial, but, boy, it’s getting close.” That Velasquez timely asserted his right, indicating that he actually wanted to be brought to trial, weighs in his favor and “is entitled to strong evidentiary weight in determining whether [he] is being deprived of the right [to a speedy trial].” Ariegwe, ¶ 78.
(4) Prejudice to the Accused
¶27 Under Factor Four, we consider whether the delay prejudiced the accused “in light of the interests that the speedy trial right was designed to protect: (i) preventing oppressive pretrial incarceration, (ii) minimizing anxiety and concern caused by the presence of unresolved criminal charges, and (iii) limiting the possibility that the accused’s ability to present an effective defense will be impaired.” Zimmerman, ¶ 28. The parties in this case dispute each of these interests.
i. Oppressive Pretrial Incarceration
¶28 Whether pretrial incarceration is oppressive depends on the “particular circumstances,” including “the duration of the incarceration, the complexity of the charged offense, any misconduct by the accused directly related to his incarceration, and the conditions of the incarceration, such as overcrowding, recreational opportunities, adequate food, climate control, proper medical care, cleanliness, and legal research capabilities.” Couture, ¶ 56. “[T]he length of the pretrial incarceration that is ‘oppressive’ is less for a relatively simple offense than it is for a complex charge.” Ariegwe, ¶ 91; accord Billman, ¶ 41 (holding that a 278-day incarceration, coupled with the relatively simple charges of felony DUI and two misdemeanor driving offenses, established that the pretrial delay had prejudiced the defendant); Couture, ¶ 59 (concluding that a longer period of pretrial incarceration was justified due to the complexity of the charged offenses of deliberate homicide and tampering with evidence). When analyzingthe conditions of incarceration, “we focus on the condition of the facilities and how they impact the accused, rather than solely on the condition of the accused.” Couture, ¶ 62. “The question here is one of oppressiveness, not merely occasional unpleasantness.” Ariegwe, ¶ 93.
¶29 The District Court concluded that Velasquez’s pretrial incarceration was not oppressive because it was “clear” that he “would have been incarcerated otherwise [in California]” before the current violation “ever came up.” Velasquez counters that it is “entirely speculative” whether he would have been incarcerated in California. Although his probation officer “may have been recommending incarceration,” Velasquez contends that “there is no evidence in the record what sentence the California court would have actually imposed.” Velasquez points out that he was “on the lowest level of supervision in California, and the California system has drug treatment alternatives to incarceration.”
¶30 Velasquez argues that his 309-day incarceration at the Roosevelt County jail was in any event oppressive in both its duration and conditions. Velasquez emphasizes that “[f]rom October 2013 to April 2014, [he] was not allowed to go outside even once.” Velasquez contends further that he was charged excessive amounts to make phone calls and had trouble sending mail from jail. The jail, Velasquez claims, contained “visible mold and recirculated air that made [his] lungs hurt.” He claims also that the conditions of his incarceration caused him to develop a skin infection.
¶31 The State argues that the District Court correctly concluded that Velasquez otherwise would have been incarcerated in California for violations that occurred “a long time before this case arose.” The State contends that while Velasquez’s allegations about the jails may have been “[olccassionally disagreeable or unpleasant,” they were “not sufficient to establish oppressive conditions.” While the State acknowledges that Velasquez “did not go outside in the winter,” it points out that Velasquez “went outside several times a week when the weather was better.” The State argues further that Velasquez had “drinkable water from two sources,” and that after seeing a doctor, Velasquez’s skin condition had gotten better.
¶32 Upon review of the record, we conclude that the District Court’s finding that Velasquez would have been incarcerated in California is not supported by substantial evidence. “Substantial evidence is evidence that a reasonable person might accept as adequate to support a conclusion; it consists of more than a mere scintilla of evidence, but may be somewhat less than a preponderance.” Brave, ¶ 6. At the hearing, Velsaquez acknowledged that he had received a letter a couple of months before the hearing, notifying him of his alleged California probation violation and advising him of a future hearing date. Velasquez testified that after receiving the letter, he asked one of the guards at the jail to run a National Crime Information Center (NCIC) check and learned that any warrants for him “weren’t extraditable.” When the State questioned Roosevelt County criminal investigator Tierra Erwin, she testified that it was her “understanding” that California “did want [Velasquez] back.” There was no indication, however, that California sought to extradite Velasquez. The State did not introduce evidence of a bench warrant for Velasquez, and Erwin admitted that to her knowledge there exists no judgment from California against Velasquez. Erwin acknowledged that when she searched the NCIC database at the time of Velasquez’s arrest in September 2013, there was no warrant or detainer on Velasquez. The California probation officer’s report of Velasquez’s violation alleged that Velasquez had last reported to probation in January 2012; the probation violation report was filed in California in March 2014, and apparently was the first allegation of violation. The report showed that a March 2014 hearing date for the alleged probation violation had been extended to July 1, 2014—nearly ten months after Velasquez’s arrest in Montana. Although the California probation officer recommended that Velasquez be “sentenced to the mid-term and it be served in any penal institution,” Velasquez testified that he had never been actually incarcerated in California but had served house arrest for 174 days. Velasquez testified also that he believed there were other options besides incarceration available to him in California such as rehab.
¶33 We cannot conclude from our review of the evidence that there is more than a “mere scintilla” to support the District Court’s finding. We conclude that a reasonable mind could not accept such evidence as adequate to support a finding that Velasquez would have been incarcerated in California even if he were not incarcerated in Montana. The court’s factual finding with respect to this issue was clearly erroneous. And, even assuming some likelihood of Velasquez’s imprisonment in California, “while the fact of incarceration on a separate charge is relevant [to the issue of oppressiveness], it is not dispositive.” Ariegwe, ¶ 92.
¶34 The hearing evidence showed that Velasquez, jailed for ten months on a non-violent drug possession charge because he was unable to meet a $5,000 bail condition, was not allowed during at least half that time—five months—to step foot outdoors. He instead attempted to exercise within the confines of his jail cell but, with visible black mold inside the jail, Velasquez’s “lungs hurt” when he tried to exercise. Jailers, when not busy with other tasks, would bring water to the inmates instead of requiring them to drink the water available in their cells, which Velasquez maintained was “not drinkable.” Velasquez was unable to maintain consistent contact with his family, either because he could not afford the one-dollar-per-minute phone charges or because jailers had cut off all prisoner phone access when someone misbehaved. (There is no evidence that Velasquez was responsible for any loss of phone privileges.) And mail to his family, and even to his attorney, did not always get delivered.
¶35 We agree with Velasquez that the impact of the facility’s conditions was more than “occasional unpleasantness.” Ariegwe, ¶ 93. We conclude that the duration of Velasquez’s incarceration relative to the offense for which he was charged, combined with the conditions he endured at the Roosevelt County jail, support a finding that the circumstances of his incarceration were oppressive.
¶36 Considering the evidence in light of the intensifying presumption of prejudice created by the 309 days of delay, Velasquez has presented sufficient evidence of oppressive incarceration to meet his lowered quantum of proof.
ii. The Accused’s Anxiety and Concern
¶37 In assessing the accused’s anxiety and concern, this Court focuses on “the ways in which the presence of unresolved charges disrupted the accused’s life,” keeping in mind that “[a] certain amount of anxiety and concern is inherent in being accused of a crime.” Couture, ¶ 64. “[T]he crucial question here is whether the delay in bringing the accused to trial has unduly prolonged the disruption of his or her life or aggravated the anxiety and concern that are inherent in being accused of a crime.” Ariegwe, ¶ 97.
¶38 In Zimmerman we concluded that a 289-day delay in bringing Zimmerman to trial unduly prolonged the disruption of his life and aggravated his anxiety and concern. Zimmerman, ¶ 34. We based our conclusion on the “clear causal connection between the State’s failure to diligently prosecute the charges and Zimmerman’s worsening financial situation, aggravated mental health issues, and increased stress in his family relationships.” Zimmerman, ¶ 34.
¶39 The District Court found that most of Velasquez’s anxiety and concern related to his absence from his family in California. In light of its finding that Child Protective Services already had taken Velasquez’s son away and that Velasquez had failed to complete the required treatment plan to get his son back, the court concluded that there could not be “that much anxiety and concern because [Velasquez] didn’t seem to care enough to stay [in California] and get his treatment done.”
¶40 Echoing the District Court’s conclusion, the State emphasizes that Velasquez’s son “was taken from him by Child Protective Services and [Velasquez] did not complete his treatment plan when he left drug rehab early.” The State notes also that Velasquez left his son in California “six months before he was arrested in this case.” The State points out that Velasquez did not lose his job because he was incarcerated in this case but that he had lost his job a month before he was arrested. The State relies on testimony from Velasquez’s sentencing hearing to contend further that Velasquez’s incarceration actually benefitted him.
¶41 Velasquez argues that the State’s delay in bringing him to trial “unduly prolonged the disruption of his life or aggravated his anxiety and concern” because of “his inability to address his many financial, legal, and family matters while incarcerated in Montana.” At the hearing Velasquez testified that his time in jail has been “really stressful” and that he had not been sleeping well. Velasquez explained that he was worried about “[a] lot of things. My [three-and-a-half-year-old] son, my life, getting back on track, just—mainly, my son.” Velasquez admitted that Child Protective Services had taken his son and that he had not completed his treatment plan. He testified that before he left California, he had seen his son every weekend, but that because of his incarceration he has only been able to talk to his son “here and there” when he could afford a phone card. Velasquez takes issue with the State’s reliance on sentencing hearing testimony to argue that his right to a speedy trial was not violated. Velasquez points out that the sentencing hearing “occurred nearly two months after the evidentiary hearing” and therefore, the testimony was not before the District Court when it analyzed the speedy trial violation. Accordingly, Velasquez argues that the sentencing testimony “is not properly part of the speedy trial record” and should not be considered by this Court.
¶42 We agree with Velasquez that our review must be “confined to the record made before the district court” at the time of the speedy trial hearing. Whitaker v. Farmhand, Inc., 173 Mont. 345, 357, 567 P.2d 916, 923 (1977). As Velasquez correctly points out, the sentencing hearing occurred well after the District Court had ruled on the speedy trial motion. It was certainly not presented to or part of the record made before the District Court. We therefore do not consider the State’s arguments with respect to testimony presented at the sentencing hearing.
¶43 While we acknowledge that the pretrial delay may have caused Velasquez anxiety and concern, based on the record before us, we do not conclude that it rose to a level beyond that “inherent in being accused of a crime.” Couture, ¶ 64. Here, unlike Zimmerman, the record does not reflect a “clear causal connection” between the State’s failure to diligently prosecute the charges and Velasquez’s financial and family issues. Zimmerman, ¶ 34. As the District Court noted, Velasquez had lost custody of his son and failed to complete his treatment plan well before he left California and became incarcerated in Montana. Likewise, Velasquez’s struggles in obtaining or maintaining employment occurred before his arrest in this case. Velasquez testified that he had lost his job before his arrest because of “money that [he] owed in California” and because he had a suspended driver’s license. After losing his job but prior to his arrest, Velasquez testified that he had been looking for jobs “a little bit” but did not have a vehicle or driver’s license in order to look for jobs.
¶44 We agree with the District Court that Velasquez did not present sufficient evidence to establish that the delay in bringing him to trial in this case caused undue prolonged disruption of his life or aggravated anxiety and concern beyond what any person accused of a crime would suffer.
iii. Impairment of the Defense
¶45 Impairment of the defense “constitutes the most important interest in the prejudice analysis.” Zimmerman, ¶ 36. It evaluates issues of evidence, witness reliability, and the accused’s ability to present an effective defense. Ariegwe, ¶ 98. “[T]ime may erode the accuracy of witness testimony and exculpatory evidence,” State v. Jefferson, 2003 MT 90, ¶ 36, 315 Mont. 146, 69 P.3d 641, and “pretrial delay prejudices an accused if defense witnesses are unable to accurately recall past events,” Billman, ¶ 47 (citation omitted). Because “excessive delay presumptively compromises the reliability of trial in ways that neither party can prove,” “consideration of prejudice is not limited to the specifically demonstrable.” Ariegwe, ¶ 99 (quoting Doggett, 505 U.S. at 655, 112 S. Ct. at 2692-93) (internal quotations omitted). “[I]n the absence of affirmative proof that the delay has impaired the accused’s ability to present an effective defense, impairment must be assessed based on other factors in the analysis.” Ariegwe, ¶ 100.
A speedy trial claim likely would fail if the government had pursued the accused with reasonable diligence and the accused could not show specific prejudice to his or her defense as a result of the delay. Conversely, where the government has been negligent in bringing the accused to trial, such negligence is not automatically tolerable simply because the accused cannot demonstrate exactly how it has prejudiced him.
Zimmerman, ¶ 36 (citations and quotations omitted).
¶46 The District Court noted that a missing witness—the front-seat passenger from the vehicle in which V elasquez was arrested—had been located very close to the hearing date. The court observed, however, that “nobody really ever said what [the witness] would say or wouldn’t say to me that would make it seem that she was so important or not so important. I have no clue what she would say from everything that I read.”
¶47 Although the front-seat passenger was subpoenaed close to his trial date, Velasquez points out that the defense was not in touch with her at the time of the hearing and that she was “missing or unwilling to appear by the time of trial.” “While the record may not directly establish whether [the witness] would have been available at the original trial date,” Velasquez argues that he has made “at least some showing of a missing, exculpatory witness.” Velasquez refers to the defense investigator’s hearing testimony that the front-seat passenger “had previously made allegations to police regarding [the driver’s] actions in the vehicle.” Velasquez argues also that he presented evidence at the evidentiary hearing that other witnesses had experienced diminished memories due to the delay. In any event, Velasquez argues that “affirmative proof of specific defense impairment is not essential to every speedy trial claim.”
¶48 The State argues, “There was no evidence that Velasquez’s defense was impaired by the delay” because “[n]o evidence was presented that if the trial were sooner, [the front-seat passenger] would have been located and would have appeared,” and “no evidence or indication of what [the witness’s] testimony would be.” In addition, the State claims that the District Court found that the delay “worked in Velasquez’s favor because it allowed him more time to try to locate [the witness].”
¶49 We disagree that the delay “worked in Velasquez’s favor” and note that the District Court did not draw such a conclusion. The court stated,
As far as the limit the possibility the defense has, I kind of want to be a smart alec and say, it looks like now they’ve found the lost witnesses, you’re actually ahead by the delay as opposed to being behind. Although, it’s also [the State’s] witness they found, so I don’t know whether that’s a win or not.
(Emphasis added.) With respect to a showing of defense impairment, the record reflects that Velasquez made some showing of prejudice at the evidentiary hearing. The investigator for the defense testified that a couple of the police officers who were involved in the case had “some recollection difficulties” when he interviewed them. As Velasquez points out, the investigator testified also that the front-seat passenger witness had made “some specific allegations” against the driver of the vehicle. While such evidence may not be “specifically demonstrable,” it is part of our consideration of prejudice. Ariegwe, ¶ 99.
¶50 Finally, even “in the absence of affirmative proof that the delay has impaired [Velasquez’s] ability to present an effective defense,” we look to other speedy trial factors to inform our analysis. Ariegwe, ¶ 100. As we determined in Factor One, the State must make a more persuasive showing that Velasquez was not prejudiced by the delay, “while the quantum of proof that may be expected of [Velasquez] under this factor is correspondingly lower.” Ariegwe, ¶ 123. In Factor Two, we determined that the 196-day delay between the first scheduled trial date and the actual trial date is attributable to the State’s lack of diligence in failing to consider alternative testing options. Such lack of diligence “is not automatically tolerable simply because the accused cannot demonstrate exactly how it has prejudiced him.” See Zimmerman, ¶ 36. In considering the evidence of impairment in light of the other factors, we conclude that Velasquez was prejudiced by the delay.
Balancing
¶51 In balancing the four factors in the analysis, we hold that the delay in this case establishes a constitutional speedy trial violation. The length of the delay intensified the presumption of prejudice to Velasquez and increased the State’s burden to prove valid justifications for the delay. The pretrial delay due to the State’s inaction toward obtaining timely drug-testing was an unacceptable reason for postponing Velasquez’s trial, making it “more likely [that his] speedy trial right has been violated.” Ariegwe, ¶ 72. Velasquez’s response to the delay in timely asserting his speedy trial right weighs further in his favor and should have been considered in the balancing equation. Ariegwe, ¶ 110. The District Court found Factor Four to be a close call, but concluded that the prejudice Velasquez suffered did not tip the scales sufficiently to demonstrate a violation of his speedy trial right. But because the District Court gave no weight to Velasquez’s assertion of his right, and because we have determined that the State bears a heavier burden in this case to overcome the presumption of prejudice, we conclude that the scales do tip in Velasquez’s favor.
CONCLUSION
¶52 In the final analysis, the guarantee of a “speedy” trial rings hollow when a person too poor to afford bail sits in jail for nearly a year on a non-violent, straightforward, relatively minor drug possession charge, confined for half that time without one minute outside, and cut off in large measure from his distant family—all because the State did not attempt to determine more quickly whether the car in which he was riding in fact contained illegal drugs.
¶53 Velasquez did not receive protection of his constitutional right to a speedy trial. We therefore reverse the District Court’s denial of his motion to dismiss and remand for dismissal of the charges.
CHIEF JUSTICE McGRATH, JUSTICES SHEA, WHEAT and McKINNON concur.
By our calculation, the length of the delay totaled 309 days, 109 days beyond the trigger date. We use that calculation in this Opinion.
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