Choteau Library Bd. of Trustees v. Teton County Bd. of Com'rs
| Decision Date | 05 June 1997 |
| Docket Number | No. 97-110,97-110 |
| Parties | CHOTEAU LIBRARY BOARD OF TRUSTEES, Fairfield Library Board of Trustees, and Dutton Library Board of Trustees, Petitioners and Appellants, v. TETON COUNTY BOARD OF COMMISSIONERS, Respondent and Respondent. |
| Court | Montana Supreme Court |
Russell R. Andrews, Teton County Attorney, Choteau, for Respondent.
The Choteau, Fairfield and Dutton Library Boards of Trustees (the Boards) have appealed the Ninth Judicial District Court's December 19, 1996 Order denying their petition for declaratory relief and mandamus. The Boards raise two issues on appeal:
1. Did the District Court err in denying the Boards' petition for declaratory judgment?
2. Did the District Court err in refusing to issue a writ of mandamus requiring the Teton County Board of County Commissioners (the Commissioners) to fund the libraries in Teton County as required by § 7-6-2348, MCA, and Montana Attorney General Opinions Volume 41, No. 91 (1986) and Volume 44, No. 35 (1992)?
We affirm as to the first issue, and, therefore, do not address the second issue.
The Boards filed their petition for declaratory judgment, for writ of mandamus, for order to show cause and for preliminary injunction in June 1996, seeking court intervention to require the Commissioners to maintain funding for the libraries in the communities of, Choteau, Fairfield and Dutton (the Communities). This followed the Commissioners' announcement in the fall of 1995, that county funding for the libraries would cease as of the 1996-97 budget year because the Commissioners deemed the libraries to have no legal existence. Ultimately, this matter was submitted to the District Court for decision on the basis of evidence presented at the hearing for preliminary injunction and on the basis of the affidavits and briefs of the parties. The District Judge denied the relief requested by the Boards and this appeal followed. Because we agreed to decide this case on an expedited basis, we issued an order affirming the trial court on May 22, 1997, indicating that our opinion would follow. The following sets out the rationale for our decision.
The history of how the libraries came into and maintained their existence dictates our decision in this case. Prior to 1968, the Communities each maintained libraries which had been developed through the efforts of local women's clubs, charitable organizations, interested citizens and donations. In the summer of 1968, the Great Falls Library approached the Commissioners and the Communities with a proposal for expanding Community library services through the Great Falls Library under the auspices of the Pathfinder Library Federation. The Communities and the Commissioners responded by each separately contracting with the Great Falls Library under arrangements whereby the Communities each agreed to provide the buildings and utilities and to appoint library trustees and the Commissioners agreed to levy one mill and pay that money to the Great Falls Library. The Commissioners appointed a person to the Pathfinder Federation Board of Trustees, and it appears that at least one of the libraries has remained a member of that organization.
Importantly, however, a "Teton County Library," as a legal entity, was not created in 1968, nor did the Commissioners appoint a board of county library trustees, although in the previous year, 1967, the Legislature had enacted a statutory scheme providing for the creation, maintenance and operation of public libraries in counties and cities and for the appointment of trustees. See 1967 Mont. Laws 260 (). Moreover,the record reflects that Teton County and the Communities have never entered into contracts for joint library services as authorized under legislation enacted in 1973. See 1973 Mont. Laws 273 ().
In 1979, the County began paying the wages of the individual Community librarians who had formerly ben paid by the Great Falls Library. Nonetheless, in each year from 1968 until 1990, the Commissioners approved and signed a contract with the Great Falls Public Library for library services in the County. The Boards were each appointed by the respective mayors and city councils of the Communities and the Boards hired the librarians; that continues to the present. In 1990, the Commissioners terminated the County's contract with the Great Falls Library but continued to levy taxes, and, from time to time, contributed revenue sharing funds to support the libraries. The library facilities are and have been since the 1970's owned by the respective individual Communities.
The Boards contend that the facts are not in controversy, but, rather, that the issues involve questions of law. We agree, and, accordingly, review the legal conclusions reached by the District Court, de novo, to determine whether the trial judge's interpretation of the law is correct. Carbon County v. Union Reserve Coal Co. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.
The Boards requested that the District Court declare the existing libraries to be legally constituted on either of two grounds: 1) the libraries exist as de facto public corporations or 2) the Commissioners should be estopped as a matter of public policy from challenging the existence of the libraries as county libraries. In support of both approaches, the Boards rely on our decisions in Hammermeister v. Northern Mont. Joint Refuse Disposal Dist. (1996), 278 Mont. 464, 925 P.2d 859; and Henderson v. School Dist. No. 44 (1926), 75 Mont. 154, 242 P. 979. We conclude that the Boards' reliance on these cases is misplaced, however.
In Hammermeister, the boards of county commissioners adopted a resolution of intention to create a multi-county joint refuse disposal district. The resolution of intention described a land area larger than the district which was finally created because one of the participant counties ultimately did not pass a resolution to create the district. While notice of the original resolution of intention was properly given according to the governing statutes, no additional notice was given affirmatively apprising affected persons of the reduction in size of the district. Following its creation, the district developed a roll-off site and a landfill site, incurred bonded indebtedness, assessed and collected taxes for services from district residents and was utilized by citizens of the district and other entities on a contract basis. Some five years after its creation, certain disaffected residents of the district challenged its creation contending that the county commissioners did not create the district in accordance with the resolution of intention because the boundaries of the district were reduced from those set forth in the original notice. Hammermeister, 925 P.2d at 860. Citing Henderson, we affirmed the trial court's conclusion that, given the public's reliance on the district for five years, the Hammermeister plaintiffs were estopped from challenging the creation of the refuse disposal district. Hammermeister, 925 P.2d at 862.
In both Henderson and Hammermeister, while not grounding our decisions on the de facto corporation theory, we did state that applicability of this doctrine was premised on an initial good faith attempt to comply with the governing statutory scheme. In each case, we concluded that there was a predicate good faith attempt to comply with the existing, applicable law. Henderson, 242 P. at 981; Hammermeister, 925 P.2d at 863.
Notwithstanding, rather than grounding our decisions in the de facto corporation theory, in each case we held that estoppel based on public policy grounds prevented challenge to the existence of the districts in question. We concluded that declaring the districts at issue void after years of operation would throw public and private rights into considerable confusion and would impair the security of taxes levied, bonds issued and contracts entered into by the districts. Henderson, 242 P. at 981-82; Hammermeister, 925 P.2d at 863.
As previously noted, the Boards requested that the District Court declare the existing libraries to be legally constituted on either of two grounds: 1) the libraries exist as de facto public corporations or 2) the Commissioners should be estopped as a matter of public policy from challenging the existence of the libraries as county libraries. We address each ground separately.
First, the Boards contend that the Commissioners established a free public library under the library laws of the State of Montana in 1968, citing §§ 44-211 to -215, -218 to -228, RCM (1947), and the agreement between Teton County and the Great Falls Library signed that year and renewed each year until 1990. The Boards concede, however, that the statutes were not precisely followed.
In both Henderson and Hammermeister, we stated that since there had been a good faith attempt to comply with the existing laws at issue (Henderson involved the annexation of a small school district to a larger school district), it could be found that the respective districts were de facto corporations, and, thus, not subject to collateral attack. Henderson, 242 P. at 981; Hammermeister, 925 P.2d at 863. Thus, in order to determine whether the same predicate good faith attempt existed in the case at bar, it is necessary to examine the governing statutes in effect in 1968. Section 44-211, RCM (1947) (enacted 1915; Sec. 11, Ch. 45, L.1915; current version at § 22-1-315, MCA), authorized the county commissioners to enter into a terminable contract with the board of trustees or governing authority of a free public library in another incorporated city or town...
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