Hounshell v. White

199 P.3d 636, 219 Ariz. 381, 536 Ariz. Adv. Rep. 10, 2008 Ariz. App. LEXIS 113
Court of Appeals of Arizona·Decided July 22, 2008·No. 1 CA-CV 06-0728·Published·Cited by 8 cases

Opinion

OPINION

SNOW, Judge.

¶ 1 Apache County Supervisors Tom M. White, Jr., David A. Brown, and Jim Claw (collectively “the Board”), acting in their official capacities, appeal from the superior court’s judgment reinstating Brian R. Hounshell as sheriff of Apache County and awarding him attorneys’ fees in the amount of $10,000. After oral argument was held on this appeal, Hounshell entered a plea on certain criminal charges filed against him. In the plea, he agreed to surrender his office as Sheriff of Apache County and to never again seek or hold that office.

¶ 2 Hounshell’s plea agreement would moot this appeal but for the Board’s continued appeal of the superior court’s award of attorneys’ fees to Hounshell. The superior court awarded such fees pursuant to Arizona Revised Statutes (“A.R.S.”) section 12-348 (2003), based on its determination that Hounshell was the prevailing party on the consolidated civil actions that resulted from Hounshell’s removal from office. We must thus examine the superior court’s substantive rulings to determine the Board’s appeal of the superior court’s attorneys’ fees award.

¶ 3 The superior court ruled that A.R.S. § 11-253(A) (2001), pursuant to which the Board voted to remove Hounshell, was implicitly repealed by H.B. 2120, 46th Leg., 1st Reg. Sess. (2003). In making that ruling, the superior court erred as a matter of law. But, even granting that the Board has authority under § 11-253(A) to remove a county sheriff from office for failure to post a bond required by the Board, when the Board requires a county officer to post a bond, the premium on the bond is a public expense when the bond meets the requirements of A.R.S. § 38-254 (2001).

¶ 4 Because the Board ordered Hounshell not only to post the bond but also erroneously ordered him to pay all premiums on the bond at his own expense, the Board imposed conditions on Hounshell’s obligation to post a bond that are inconsistent with the law. It thus acted in excess of its authority in removing Hounshell for his failure to post a bond, and the superior court correctly characterized Hounshell as the prevailing party in his dispute with the Board. Because § 12-348 requires the mandatory award of fees to a party other than “this state or a city, town or county” which prevails on the merits in the type of actions that have been consolidated here, we affirm the superior court’s award of attorneys’ fees to Hounshell. State ex rel. McDougall v. Albrecht, 168 Ariz. 128, 133, 811 P.2d 791, 796 (App.1991) (“When a lower court comes to the proper conclusion for the wrong reason we are obliged to affirm the ruling if it was legally correct for any reason.”).

FACTUAL AND PROCEDURAL HISTORY

¶ 5 Prior to the facts giving rise to this action, Hounshell, the duly-elected Sheriff of Apache County, was indicted for crimes relating to the misuse of public funds and other property to which he had access by virtue of his office. On June 3, 2005, Arizona Counties Insurance Pool (“ACIP”), from which Apache County insured the performance of its county officers, notified the Board that pursuant to exclusion provisions in the County’s insurance policy it would not cover losses occasioned by any fraudulent or dishonest acts of Hounshell occurring after he was indicted.

¶ 6 As a result, the Board voted to require Hounshell to post a $100,000 bond “to cover the cost of defending and paying for any claims for which Apache County does not have coverage due to the [insurance] exclusion.” The Board also required Hounshell to *385 pay the premiums on the bond. When Hounshell failed to post the bond, the Board voted to remove him from office.

¶7 Hounshell then filed a special action complaint asking that the Board’s order removing him from office be declared void. The County filed two quo warranto actions seeking to effectuate Hounshell’s removal. The three actions were consolidated. The trial court ruled that the Board lacked the authority to remove Hounshell for failure to post the bond and that Hounshell was entitled to his office. The Board appealed, and we have jurisdiction pursuant to A.R.S. § 12-2101(B) (2003).

ANALYSIS

¶8 The issues in this appeal involve the interpretation of a statute. We review such interpretations de novo. Phoenix Newspapers, Inc. v. Ariz. Dep’t of Econ. Sec., 186 Ariz. 446, 448, 924 P.2d 450, 452 (App. 1996).

I. The Board May Require the Sheriff to Post a Bond.

A. Background

¶ 9 According to § 11-253(A):

[A county board of supervisors] may require any county officer ... to give such bonds or further bonds as may be necessary for the faithful performance of his respective duties. An officer who neglects or refuses ... to give the bond within ten days after being so required[] may be removed from office by the board____

It is pursuant to this statute that the Board required Hounshell to post a bond and voted to remove him from office when he failed to do so.

¶ 10 The court reinstated Hounshell on the ground that the “part of A.R.S. [§ ] 11-253 allowing the Board to remove a county officer for failure to post a bond” was implicitly repealed when the Legislature enacted H.B. 2120 in 2003. In so ruling, however, the superior court erred. H.B. 2120 amended the public agency pooling statute, A.R.S. § 11-952.01 (2001) (amended 2003), to authorize counties and other public agencies to obtain liability coverage for the acts of their officers through authorized pool coverage. 1 In light of this authorization, H.B. 2120 deleted statutory provisions that either required specific county office holders to post a bond or the county to obtain a blanket bond for its officers. The bill thus also deleted the statutory provision that premiums for “official bonds required by law to be given by public officers, deputies or clerks” were a county charge, A.R.S. § 11-601(9) (2001) (amended 2003), and the provision that a public office would be deemed vacant if the public official elected to that office failed to file “his official ... bond within the time prescribed by law,” A.R.S. § 38-291(9) (2001) (amended 2003).

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Hounshell v. White, 199 P.3d 636, 219 Ariz. 381, 536 Ariz. Adv. Rep. 10, 2008 Ariz. App. LEXIS 113 (Ark. Ct. App. 2008).

199 P.3d 636 (Hounshell v. White) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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