Justia Montana Supreme Court Opinion Summaries

At issue in this case were smoking structures built by the owners and operators of two casinos in Great Falls (“Casino Owners”). After the Cascade City-County Board of Health (Board) commenced enforcement steps against the Casino Owners under the Montana Clean Indoor Air Act (MCIAA), the Casino Owners initiated an action against the Board seeking a declaration that their smoking structures were in compliance with the MCIAA. The district court granted summary judgment to the Casino Owners and awarded attorney fees. The Supreme Court reversed remanded for entry of summary judgment in favor of the Board, holding (1) the MCIAA clearly delineates casinos on the statute’s list of public places wherein smoking is prohibited, and therefore, the district court erred in concluding that the smoking structures at issue were not subject to the smoking prohibition of the MCIAA; (2) the Casino Owners failed to establish that the Board was equitably estopped from enforcing the MCIAA; and (3) the district court improperly awarded the Casino Owners attorney fees. View "MC, Inc. v. Cascade City-County Bd. of Health" on Justia Law

The Montana Department of Public Health and Human Services filed a petition for emergency protective services for seven-year-old H.T., alleging drug use by Mother and domestic violence between Mother and her boyfriend. The petition stated that H.T. “may be an Indian Child for the purposes of the Indian Child Welfare Act (ICWA).” The district court granted the motion for emergency protective services. The district court subsequently held a hearing that adjudicated H.T. a youth in need of care. The Department then filed a petition for permanent legal custody and termination of parental rights. The district court held a termination hearing and adopted and approved the termination petition. Mother appealed, asserting that the district court failed to comply with state and federal statutory requirements for terminating parental rights to an Indian child. The Supreme Court affirmed in part and vacated in part, holding (1) Mother received fundamentally fair procedures prior to the termination of her parental rights; but (2) because the district court applied the wrong statutory standards in its final order, its judgment is vacated. Remanded for entry of a new order on the issue of whether Mother’s parental rights should be terminated. View "In re H.T." on Justia Law

Lisa Bailey, a fifty-one-year old who was considered morbidly obese, requested, through her physician, Medicaid authorization for gastric bypass surgery. The Montana Department of Public Health and Human Services (Department) denied the request because gastric bypass surgery is a non-covered service under Department administrative rules. A hearing officer upheld the Department’s determination, and the Board of Public Assistance adopted the decision of the hearing officer. The district court affirmed. Bailey appealed, asking that the Department be required to conduct a determination of medical necessity for the procedure. The Supreme Court affirmed, holding that the Department’s rule excluding coverage for all invasive procedures undertaken for the purpose of weight reduction, including gastric bypass surgery, is not unreasonable or contrary to federal law. View "Bailey v. Mont. Dep’t of Pub. Health & Human Servs." on Justia Law

In 2012, after auditing Cloud Peak Energy Resources, LLC’s Montana Coal Tax payments for years 2005-2007, the Department levied a deficiency assessment for additional taxes owing from sales involving non-arm’s length (NAL) agreements. Cloud Peak filed a complaint alleging that the Department’s methodology for determining market value was illegal and that it had also illegally assessed taxes on coal additives for the years 2005-2007. The district court (1) held in Cloud Peak’s favor on the first issue, concluding that the market value of coal sold under NAL agreements is determined by comparing its price with that of coal sold under arm’s length contracts negotiated in a similar timeframe; and (2) ruled in the Department’s favor on the issue regarding additives. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) correctly found that market value is properly based upon similarly negotiated contracts, but the additional language included in the order was inappropriate; and (2) did not err in holding that coal additives used from 2005-2007 are subject to Montana Coal Taxes. View "Cloud Peak Energy Res., Inc. v. Dep’t of Revenue" on Justia Law

After Senate Bill 140 was enacted in 2011, Billings Yellow Cab, LLC applied to the Public Service Commission (PSC) for issuance of a certificate of public convenience and necessity (PCN certificate) as a grandfathered entity. The PSC denied the application. Yellow Cab subsequently filed a second application for a PCN certificate as a Class B carrier. After a hearing, the PSC issued a final order denying the application, concluding that Yellow Cab failed to demonstrate that public convenience and necessity required authorization of the proposed service. The district court affirmed. The Supreme Court affirmed, holding that the district court did not err by (1) concluding that Yellow Cab’s claims that the PSC’s denial of a PCN certificate constituted an unconstitutional taking and violated equal protection were procedurally barred; (2) affirming the PSC’s denial of Yellow Cab’s application for a certificate of public convenience and necessity; and (3) affirming the PSC’s exclusion of Yellow Cab’s Exhibit 2. View "Billings Yellow Cab, LLC v. State ex rel. Pub. Serv. Comm’n" on Justia Law

In 2011, the Lower Teton Joint Objectors, water users who hold appropriation rights from the lower Teton River in Chouteau County, commenced an action claiming that the Water Commissioners’ practice of diverting water out of the natural channel of the Teton River and into the Bateman Ditch harmed their appropriation rights by depriving the Teton River aquifer of recharge water. The Water Master issued a report regarding the Bateman Ditch, and the Water Judge issued an “Order Amending Master’s Report and Adopting as Amended.” The Objectors and intervenor Patrick Saylor appealed. The Supreme Court affirmed in part and reversed in part, holding (1) the Water Court erred by concluding that the Bateman Ditch diversion to supply water to Choteau Cattle Company is a private right held by Saylor; and (2) the Water Court acted properly in listing the water rights that can be diverted through the Bateman Ditch. View "Eldorado Co-op Canal Co., Lower Teton Joint Objectors" on Justia Law

Petitioner, the owner and president of a Montana corporation, stopped paying himself a salary but continued working. Petitioner applied for and received unemployment benefits but reported to the State of Montana Department of Labor and Industry (DLI) that he worked zero hours per week. When DLI discovered that Petitioner worked fifty hours a week, DLI determined that Petitioner had wrongfully received benefits. DLI ordered Petitioner to repay the overpaid benefits and imposed an administrative penalty. The district court reversed in part, concluding that when Petitioner drew no salary he did not need to report the hours he worked and was eligible to receive benefits. The Supreme Court reversed, holding (1) a corporate officer working full-time without pay for his corporation is engaged in employment under Montana’s Unemployment Insurance Law and is required to report his hours of work when seeking unemployment benefits; and (2) DLI correctly imposed a penalty on Petitioner for misrepresenting the amount of hours he worked. View "Sayler v. Dep’t of Labor & Indus., Ins. Div." on Justia Law

Petitioner, who was injured while performing her work duties, filed a workers’ compensation claim. Liberty Northwest (Liberty), the insurer for the claim, terminated Petitioner’s temporary partial disability (TPD) benefits after Petitioner revoked releases and authorizations she had previously signed allowing Liberty and its agents to have ex parte communications with her medical care providers. Petitioner filed an action asserting that the statutes relied upon by Liberty to terminate her medical benefits, Mont. Code Ann. 39-71-604 and Mont. Code Ann. 50-16-527, were unconstitutional. The Workers’ Compensation Court (WCC) determined that section 39-71-604(3), as applied in Petitioner’s case, violated Petitioner’s constitutional right of privacy. The Supreme Court affirmed, holding that the WCC did not err in concluding that section 39-71-604(3) violated Petitioner’s right of privacy set forth in the Montana Constitution. View "Malcomson v. Liberty Northwest" on Justia Law

Westmoreland Resources Inc. (WRI) mines coal owned by the Crow Tribe and pays coal severance and gross proceeds taxes to the Tribe. In 2005, WRI filed a tax return with the Department of Revenue for coal produced and sold at its Absaloka Mine, located on the Crow Reservation, during tax year 2004. The return deducted the coal severance and gross proceeds taxes it had paid to the Tribe. The Department disallowed WRI’s deduction. WRI filed a complaint with the State Tax Appeal Board. WRI and the Department later filed a joint petition for an interlocutory adjudication of a substantive question of law with the district court. At issue was whether WRI’s coal severance and gross proceeds deduction was proper. The district court held in favor of the Department, concluding that WRI may not deduct taxes paid to the Tribe as “taxes paid on production” from the “contract sales price” when calculating the Resource Indemnity Trust and Ground Water Assessment Tax. The Supreme Court affirmed, holding that the phrase “any tax paid to the federal, state, or local governments” within Mont. Code Ann. 15-35-102(11) does not include those taxes WRI pays to the Tribe. View "Westmoreland Res., Inc. v. Dep’t of Revenue" on Justia Law

This case arose from a restriction placed on a certain parcel of real property providing that the land would be used exclusively for agricultural purposes. Greg Hampton, a developer, requested the consent of Lewis and Clark County to revoke the agricultural covenant. The County approved the lifting of the covenant subject to thirteen conditions. Hampton then began working on developing his residence on the parcel. The County later filed a complaint requesting injunctive relief and an order requiring Hampton to complete the conditions. A jury determined that Hampton had notice of the thirteen conditions prior to building his home and that he failed to complete four conditions prior to development. The district court then entered final judgment, ordering Hampton to pay the proportionate share of the cost to upgrade Lodgepole Road to County road requirements, among other orders. The Supreme Court largely affirmed, holding (1) the district court did not err in ruling on summary judgment that the County consented to revocation of an agricultural covenant on Hampton’s property; (2) the district court erred in determining that Hampton was only proportionally responsible for the cost of upgrading Lodgepole Road; and (3) the district court did not err in the remainder of its judgment. View "Lewis & Clark County v. Hampton" on Justia Law