McDaniel v. State

• Decision Date: 11 May 2009
• Docket Number: No. DA 07-0363.,DA 07-0363.
• Parties: Kenneth McDANIEL, Plaintiff and Appellant, v. STATE of Montana, Defendant and Appellee.
• Court: Montana Supreme Court

208 P.3d 817

2009 MT 159

350 Mont. 422

Kenneth McDANIEL, Plaintiff and Appellant, v. STATE of Montana, Defendant and Appellee.

No. DA 07-0363.

Supreme Court of Montana.

Submitted on Briefs May 21, 2008.

Decided May 11, 2009.

For Appellant: Russell K. Jones, Attorney at Law, Spokane, Washington.

For Appellee: Rebekah French, Risk Management and Tort Defense Division, Helena, Montana Mikel L. Moore, Christensen, Moore, Cockrell, Cummings & Axelberg, P.C., Kalispell, Montana.

Justice JAMES C. NELSON delivered the Opinion of the Court.

¶ 1 Kenneth McDaniel filed this action against the State of Montana in the Eleventh Judicial District Court, Flathead County, alleging breach of contract and deprivation of property without procedural due process. The District Court denied McDaniel's motion for partial summary judgment, granted the State's motion for summary judgment, and dismissed the action on the ground that the State was entitled to prevail on a defense of prosecutorial immunity. McDaniel now appeals. For the reasons detailed below, we affirm in part, reverse in part, and remand for further proceedings.

BACKGROUND

¶ 2 McDaniel pleaded guilty in June 2003 to the offense of burglary, a felony, and the District Court sentenced him in July 2003 to the Montana State Prison for a period of 20 years. The court suspended the entire 20-year sentence, subject to a number of conditions, and ordered McDaniel to submit to the supervision of the Adult Probation and Parole Bureau of the Montana Department of Corrections ("DOC").

¶ 3 On November 20, 2003, McDaniel's probation officer gave him a random drug test, which came back positive for cocaine. That same day, McDaniel signed a Substance Abuse Admission Form in which he admitted having used cocaine. But rather than file a report of violation with the Flathead County Attorney's Office, McDaniel's probation officer elected instead to initiate an intervention hearing under § 46-23-1015, MCA. That provision states that "[a] probation and parole officer who reasonably believes that a probationer has violated a condition of probation may initiate an informal probation violation intervention hearing to gain the probationer's compliance with the conditions of probation without a formal revocation hearing under 46-18-203." Section 46-23-1015(1), MCA (2003). A hearings officer designated by the DOC conducts the intervention hearing. Section 46-23-1015(2), MCA.

¶ 4 The intervention hearing in McDaniel's case was held December 9, 2003. At the conclusion of the hearing, McDaniel, his probation officer, and the hearings officer signed an Intervention Hearing Agreement, which stated as follows:

This is an Agreement between The State of Montana, Department of Corrections Adult Probation & Parole and Kenneth Glen McDaniel

I[,] Kenneth Glen McDaniel[,] understand and agree to the following conditions in lieu of a formal violation being filed at this time.

1. You will immediately be placed on Level 1 supervision for a minimum of six (6) months and report as directed.

2. You will immediately begin court ordered anger management counseling. You will have no unexcused absences and you will participate as required in all sessions, homework, etc.

3. You will immediately begin attending AA/NA meetings and utilize an AA/NA log as directed by your P.O. You will attend a minimum of two (2) AA/NA meetings weekly for a minimum of one (1) year and thereafter as directed by your P.O.

4. You will not be allowed any travel permits whatsoever until you have completed anger management counseling, maintained AA/NA meetings as directed, secured and maintained acceptable employment, and have shown a regular monthly payment record towards court ordered financial obligations.

¶ 5 Shortly thereafter, a Deputy Flathead County Attorney learned "informally" that the DOC had conducted an intervention hearing with McDaniel. The prosecutor obtained McDaniel's file from the regional Probation and Parole Office and, on December 16, 2003, filed a Petition for Revocation of Suspended Sentence in the District Court. The basis of this petition was McDaniel's admitted use of cocaine, i.e., the same probation violation upon which the Intervention Hearing Agreement was based.

¶ 6 The District Court issued a bench warrant, and McDaniel was arrested and jailed. He then filed two motions to dismiss the petition for revocation. In the first, he argued that the intervention hearing and the Intervention Hearing Agreement constituted a final adjudication of his probation violation, including the appropriate sanction for the violation, and that the State, therefore, was barred by res judicata from relitigating the matter. In the second, he asserted that filing the petition for revocation constituted a breach of the Intervention Hearing Agreement. The prosecutor correspondingly filed two briefs opposing McDaniel's motions. He argued that the elements of res judicata were not satisfied. Furthermore, he argued that "the State" had not attended the intervention hearing and, consequently, that "[i]t is absolutely false that the State ever entered into an agreement with [McDaniel] regarding [McDaniel's] violating the terms of his probation."

¶ 7 The District Court held a hearing on McDaniel's motions in May 2004 and entered its Findings of Fact, Conclusions of Law, and Order on Motion to Dismiss on October 29, 2004. In brief, the court determined as follows: the State of Montana, acting through the DOC, was a party to the intervention hearing; the Intervention Hearing Agreement was "a valid, binding agreement" between McDaniel and the State; McDaniel agreed to comply with four conditions "in lieu of a formal violation being filed at this time"; and as of the May 2004 hearing, McDaniel had "fully complied" with these conditions. The court concluded that "the State got what it bargained for: compliance thereafter by [McDaniel] with the rules of probation, as amended in the agreement, and there is no valid argument that [McDaniel] is NOT entitled to get what he bargained for: that the intervention agreement was `in lieu of a formal violation being filed.'" Thus, the court granted McDaniel's motions to dismiss the petition for revocation. The State did not appeal.

¶ 8 McDaniel filed the instant action on December 30, 2005, asserting two claims: first, that the State breached a written contract with McDaniel when it filed the petition to revoke his suspended sentence; and second, that the State deprived McDaniel of "his property in the benefits of the written contract and administrative decision" without procedural due process of law in violation of Article II, Section 17 of the Montana Constitution. McDaniel alleged damages "including 33 days loss of physical liberty, loss of income, $4,000.00 bondsman fee, $5,900.00 attorney fee, public obloquy, and emotional upset."

¶ 9 The State removed the action to the United States District Court for the District of Montana in February 2006; however, the federal court determined that it lacked subject-matter jurisdiction and, thus, granted McDaniel's motion for remand to the Eleventh Judicial District Court in August 2006. The parties thereafter filed cross-motions for summary judgment. Relying on collateral estoppel (issue preclusion), McDaniel asserted that he was entitled to judgment as a matter of law respecting the State's liability on his breach of contract and procedural due process claims. He argued that this issue had already been adjudicated and resolved (in his favor) in the revocation proceedings. The State, however, argued that it was "immune from civil liability for conduct preformed by a prosecutor acting within the scope of his duties." Thus, the State concluded it was entitled to summary judgment on both of McDaniel's claims.

¶ 10 The District Court entered its Order and Rationale on Cross-Motions for Summary Judgment on May 7, 2007. Agreeing with the State's theory of prosecutorial immunity, the court first reasoned that "[a]lthough McDaniel's lawsuit is against the State of Montana and he argues that the State breached a contract with him, the basis of his complaint rests on actions taken by the Flathead County Deputy Attorney." The court then observed that "prosecutors enjoy immunity for actions taken in the course of their official duties." Lastly, citing Ronek v. Gallatin County, 227 Mont. 514, 740 P.2d 1115 (1987), the court stated that "such immunity extends to counties, the State and its agencies." Accordingly, on this basis, the court granted the State's motion for summary judgment and denied McDaniel's motion for partial summary judgment.

¶ 11 McDaniel now appeals.

ISSUES

¶ 12 McDaniel raises two issues on appeal:

1. Did the District Court err in granting the State's motion for summary judgment based on its prosecutorial immunity defense?

2. Did the District Court err in denying McDaniel's motion for partial summary judgment with respect to the State's liability?

STANDARD OF REVIEW

¶ 13 We review a district court's ruling on a motion for summary judgment de novo, applying the criteria set forth in M.R. Civ. P. 56. Corporate Air v. Edwards Jet Center Montana, 2008 MT 283, ¶ 24, 345 Mont. 336, 190 P.3d 1111. The moving party has the initial burden of establishing both the absence of genuine issues of material fact and entitlement to judgment as a matter of law. Corporate Air, ¶ 25. The evidence must be viewed in the light most favorable to the nonmoving party, and all reasonable inferences are to be drawn therefrom in favor of the party opposing summary judgment. Peterson v. Eichhorn, 2008 MT 250, ¶ 12, 344 Mont. 540, 189 P.3d 615. If the moving party meets its initial burden, then the burden shifts to the nonmoving party to establish with substantial evidence, as opposed to mere denial, speculation, or conclusory statements, that a genuine issue of material fact does exist. Peterson, ¶ 13. If no genuine issue of material fact exists, then the court...