Granada Independent School District No. 455 v. Mattheis

170 N.W.2d 88, 284 Minn. 174, 1969 Minn. LEXIS 1034
CourtSupreme Court of Minnesota
DecidedJuly 18, 1969
Docket41477
StatusPublished
Cited by7 cases

This text of 170 N.W.2d 88 (Granada Independent School District No. 455 v. Mattheis) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Granada Independent School District No. 455 v. Mattheis, 170 N.W.2d 88, 284 Minn. 174, 1969 Minn. LEXIS 1034 (Mich. 1969).

Opinion

Murphy, Justice.

This is an appeal from an order of the district court vacating an order of the commissioner of education in school district consolidation proceedings. It is contended that the court erred in holding that the commissioner’s action in denying a proposed consolidation of two independent school districts was arbitrary, capricious, and in unreasonable disregard of the best interests of the territory affected.

The proceedings herein were originated by an application for consolidation submitted by Granada Independent School District No. 455 and Huntley Independent School District No. 221 to the commissioner of education pursuant to Minn. St. 122.23. Preliminary requirements for the application were properly met, including the preparation and filing of a plat of the proposed consolidation. It appears that in such a proceeding the commissioner has the power to approve, modify, or reject the application. Independent School Dist. No. 581 v. Mattheis, 275 Minn. 383, 147 N. W. (2d) 374; In re Appeals of Schluter, 273 Minn. 386, 141 N. W. (2d) 482; Bakken v. Schroeder, 269 Minn. 381, 130 N. W. (2d) 579.

The record indicates that the Granada and Huntley school dis *176 tricts lie adjacent to each other in rural Martin and Faribault Counties. Between them they have an assessed valuation of $2,467,923 and approximately 300 students at the secondary level, which places them well within acceptable criteria for consolidation. Prior to 1966, the Granada school district was on the “advised list” of the Department of Education, principally because of deterioration of physical property and inadequate educational standards. The “advised list,” as we understand it, implies a deficiency in standards which if not corrected may jeopardize entitlement to state aid. An attempt was made to upgrade the school district. With the help of a bond issue of $187,000, the district attempted to correct its deficiencies by the addition of a science laboratory, lunchroom facilities, music room, and classroom space. In addition, the school district acquired approximately $387,000, the proceeds of an insurance policy on the old school building which had been destroyed by fire. After the fire, one of the assistant commissioners suggested consolidation between Granada and Huntley, as a result of which the respective boards of those districts agreed to seek approval for consolidation. Representatives of the Department of Education expressed the view that their financial condition was satisfactory and encouraged them to try to consolidate. The plan of consolidation was to have the first six grades at Huntley and the last six grades at Granada. Huntley has. an elementary facility, which was built about 12 years ago, and a full-time kindergarten. The Granada district proceeded to build a new high school with the insurance money and an additional $50,000, the proceeds of a bond issue. The plan for this building was approved by the Department of Education, the building has been completed, and it is now in use. In the opinion of the superintendents and district board members, the consolidation of the two districts would have enabled them to have two sections in each class, permitting the division of the better and poorer students. The plan permitted more than one foreign language to be taught, and other subjects, including agriculture and art, could be added. The proposed con *177 solidation would provide a stronger financial unit, and the duplication of administration would be eliminated.

At the hearing on the application, members of the Fairmont and Winnebago school districts were present at the invitation of the commissioner. After the hearing, the application for consolidation was rejected, and the commissioner urged that Granada join the Fairmont district, which was contiguous to it on the south, and that Huntley consolidate with the Winnebago district, which was contiguous to it on the north. It was the view of the commissioner that the petitioning districts should join with what he considered the larger and stronger districts of Fairmont and Winnebago.

The petitioning districts appealed to the district court from the order of the commissioner, and after hearing the evidence the district court concluded that the commissioner’s order was “arbitrary and capricious, and in unreasonable disregard of the best interest of the territory affected.” For our purposes, we are concerned only with Minn. St. 127.25, subd. 1(3), which allows an appeal on the grounds:

“That the action appealed from is arbitrary, fraudulent, capricious or oppressive or in unreasonable disregard of the best interest of the territory affected.”

In support of its determination, the trial court emphasized that since 1964 Granada had been encouraged by representatives of the Department of Education to “consider the possibility of merging with other districts, or other districts merging with Granada, so that a stronger educational system could be developed.” In August 1966, the commissioner had congratulated Granada on its building program. The court noted, “The district was retained on the advised or conditionally approved list” pending an official visit to ascertain if the program had met the requirements for “good standing classification.” The court further observed, “The testimony of [the commissioner] indicates, moreover, that as of the date of the hearing he had yet to visit either *178 school district in person.” The court further noted that subsequent to the fire in 1966, pursuant to “conversations and consultations” with representatives of the Department of Education, “both the Huntley and Granada Boards approved the consolidation plan.” The trial court was of the view that “the proposed consolidation of the Huntley and Granada districts met the then-standards as to number of students, assessed valuation and financial stability.” It went on to say, “Both Huntley and Granada are basically stable farm communities, and they were assisted in their planning by Springsted, Inc., Municipal bond consultants. Their combined assessed valuation of $2,467,123.00 is higher than 70% of the school districts existing in the State of Minnesota today.”

In applying the standards expressed in § 127.25, subd. 1(3), the trial court said:

“When [the commissioner’s] authority is exercised in an arbitrary or unreasonable manner so as to constitute an abuse of discretion, the courts may and will interfere on behalf of the districts injured thereby. After much urging by members of [the commissioner’s] staff, the districts of Granada and Huntley did seek to consolidate, to better serve the educational needs of their students. The Commissioner’s rejection of the consolidation plan is an abuse of discretion under all the facts and circumstances of this case, and must therefore be reversed by this Court.”

The order of the district court, after vacating the decision of the commissioner of education, provides: “The Commissioner of Education shall forthwith approve said consolidation plat” and return it to the proper county officials as provided by statute.

The criteria to be followed in reviewing the action of the district court to determine whether the commissioner has abused his discretion is expressed in In re Certain School Dists. Freeborn County, 246 Minn. 96, 108, 74 N. W. (2d) 410, 418, as follows:

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Bluebook (online)
170 N.W.2d 88, 284 Minn. 174, 1969 Minn. LEXIS 1034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/granada-independent-school-district-no-455-v-mattheis-minn-1969.