Justia Montana Supreme Court Opinion Summaries

Stephen and Dawn Steadele contracted with Montana Component Housing Corporation (MCHC) to construct a home. MCHC did not complete the home by the deadline and eventually abandoned the project without completing the home. The Steadeles filed suit against MCHC. The district court entered a default judgment against MCHC when it failed to respond to the suit. The Steadeles then requested payment from Colony Insurance Company, MCHC's insurer. Colony denied coverage and refused to pay because MCHC never notified it of the Steadeles' claim. The Steadeles then filed this action, arguing that Colony's refusal to issue payment on the underlying judgment was a violation of Mont. Code Ann. 33-18-201, which prohibits unfair claim settlement practices. The district court granted summary judgment to Colony. The Supreme Court affirmed, holding that the district court did not err in granting summary judgment to Colony because MCHC's failure to notify Colony of the Steadeles' claim was a material breach of MCHC's obligations under the policy.

Defendant Hector Valdez-Mendoza pleaded guilty to one count of sexual assault. After the district court granted Defendant's request for new counsel, Defendant filed a motion to withdraw plea of guilty, asserting in part that he had good cause to withdraw his guilty plea because his previous defense counsel convinced him he could not get a fair trial. The district court denied Valdez-Mendoza's motion. The Supreme Court reversed Defendant's conviction, holding that Defendant had good cause to withdraw his guilty plea because his previous defense counsel shared her belief with Defendant that he could not get a fair trial and made no attempt to assuage Defendant's fear of an unfair trial. Remanded.

After a jury trial, Richard Edwards was found guilty of deliberate homicide. The Supreme Court affirmed the judgment of the district court, holding (1) the district court did not err when it permitted Edwards' wife's testimony because (a) her observations of Edwards' actions did not constitute spousal communications and therefore were not privileged, and (b) Edwards' marital communications regarding the murder that were accompanied by threats were not privileged because they were not communicated in reliance on the confidence of the marital relationship; (2) Edwards was not denied effective assistance of counsel because he failed to show he was prejudiced by defense counsel's admission of lack of preparation for cross-examination; and (3) while it was error for the district court not to inquire into Edwards' post-trial motion for new counsel, reversal in this case was not required because Edwards did not allege a conflict that resulted in a total lack of communication, nor did he claim that his attorneys were unable or unwilling to represent him at the sentencing hearing.

Timothy Hop's automobile was damaged in an accident with a driver insured by Safeco Insurance Company. In addition to the costs of repair, Hop sought "residual diminished value" (RDV) for his vehicle. When Safeco failed to pay RDV, Hop filed a class action complaint for declaratory relief in the district court, seeking a declaration that Safeco was required to investigate and pay class members, people whose vehicles were damaged by a Safeco insured and who were not paid RDV by Safeco, for RDV of their vehicle. The district court granted Hop's motion for class certification. The Supreme Court reversed, holding that the district court abused its discretion in certifying a class action before Hop had satisfied the statutory requirements to bring an individual third party action against Safeco. Remanded with instructions to dismiss Hop's class action without prejudice.

Appellees Dana Headapohl and Lawrence Martin placed two buildings in the floodplain without a permit and installed an un-permitted incinerating toilet. The health department issued a notice of violation (NOV) to Appellees, informing them that the two structures constituted "increased use" of the septic system in violation of the health code and requiring Appellees to remove the buildings and incinerating toilet. The health board affirmed the Department's NOV following a hearing. The district court concluded that Appellees had not violated the health code by adding the two buildings, that the contested provisions of the health code suffered unconstitutional vagueness as applied to Appellees, and that the incinerating toilet did not qualify as a wastewater treatment and disposal system under the health code. The Supreme Court reversed, holding (1) the district court relied on an incomplete interpretation of "increased use" to determine whether the addition of the two buildings constituted increased use of the septic system that violated the health code, and (2) Appellees' incinerating toilet required a permit under the health code as a wastewater treatment and disposal system. Remanded to determine whether Appellees' changes of use could result in increased effluent flow to the septic system.

Sheryl Crasco secured three payday loans from three different lenders. After the payor banks returned the checks for insufficient funds, the payday lenders assigned the checks to Credit Service, a collection agency. Credit Service filed an action against Crasco to recover the face value of the checks, a service fee per check, and bad check penalties of $500 per check. The county justice court concluded (1) Crasco must pay to Credit Service the face amount of each check and the service charge on each check, (2) Credit Service could not collect the bad check penalties, and (3) Crasco could recover damages for Credit Service's illegal pursuit of the bad check penalties. The district court reversed, determining that Credit Service could collect the bad check penalties. The Supreme Court reversed, holding a collection agency cannot charge bad check penalties for checks assigned to it from payday lenders when the payday lenders themselves are statutorily prohibited from charging such penalties. Remanded to determine whether the justice court incorrectly awarded Crasco damages.

Appellant, Summer Night Oil Company, and Appellees, individuals and oil companies, resolved a dispute over the operation of two oil wells through a settlement agreement. Appellant filed a motion to compel performance of the agreement after the parties failed to perform timely their obligations under the agreement. Specifically, Appellant asked the district court to compel Appellees to deliver all title clearance documents under the agreement. Appellees responded with a request to compel Appellant to pay a fine due to the EPA and a payment owed to Appellees under the agreement. Both parties sought attorney fees. The district court enforced what it determined to be the plain meaning of the agreement's terms, and (1) ordered Appellant to pay the fine owed to the EPA, (2) ordered Appellant to pay Appellee the amount owed it under the agreement, (3) ordered Appellees to deliver all title clearance documents to an escrow agent, and (4) declined to award attorney fees to either party. The Supreme Court affirmed, holding (1) the district court properly denied Appellant's motion to compel performance of the agreement according to Appellant's terms, and (2) the district court correctly denied Appellant's motion to alter or amend its judgment.

Rosina Spaulding pleaded guilty in district court to misdemeanor DUI per se. Spaudling reserved the right to appeal the district court's denial of her motion to suppress. On appeal, the Supreme Court affirmed, holding the district court correctly denied Spaulding's motion to suppress as (1) although Spaulding was temporarily seized when a deputy sheriff pulled her vehicle over, made contact with her, and inquired as to her and her passengers' well-being, (2) the warrantless seizure was constitutionally reasonable because it met the criteria of the community caretaker doctrine, which allows a government official to stop and investigate a citizen without a warrant when there are objective, specific, and articulable facts from which an experienced officer would suspect that citizen is in need of help or is in peril.

John Chaussee was charged with driving under the influence of alcohol. The offense was alleged to be Chaussee's fourth DUI conviction, making it a felony. Chaussee filed a motion to dismiss, arguing that two of his prior DUI convictions were constitutionally invalid. The district court denied the motion. Chaussee pleaded guilty, reserving his right to appeal the denial of his motion. At issue on appeal was whether Chaussee sufficiently demonstrated that his prior convictions were constitutionally infirm. The Supreme Court affirmed the district court's denial of Chaussee's motion to dismiss, holding that Chaussee failed in his burdens of production and persuasion to demonstrate that his prior convictions were constitutionally invalid.

Victor Tacke failed to pay real property taxes on his property in Lake County from 2005 to 2008. In 2006, the County conducted a tax sale for the year 2005, at which the County purchased the tax lien. In 2009, the County assigned its interest in the tax lien to Montana Lakeshore Properties (Lakeshore) in exchange for payment of the past due taxes and issued a tax sale certificate to Lakeshore. The County subsequently issued a tax deed to Lakeshore. In 2010, Tacke filed an action to quiet title in the property, seeking a judicial declaration that the tax deed was void. The district court granted summary judgment in favor of Lakeshore. At issue on appeal was whether Lakeshore violated Mont. Code Ann. 15-17-212(3) by paying the back taxes two hours and forty-five minutes short of two weeks after giving notice to Tacke. The Supreme Court affirmed, holding that the district court did not err by granting summary judgment upholding the tax deed obtained by Lakeshore because this case fit within the general principle that "the law regards the day as an indivisible unit" and discards fractional days in most time computations.