In re the State Bar of Montana

2001 MT 108, 53 P.3d 854, 305 Mont. 279, 2001 Mont. LEXIS 174
CourtMontana Supreme Court
DecidedJune 19, 2001
DocketNo. 00-329
StatusPublished
Cited by2 cases

This text of 2001 MT 108 (In re the State Bar of Montana) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the State Bar of Montana, 2001 MT 108, 53 P.3d 854, 305 Mont. 279, 2001 Mont. LEXIS 174 (Mo. 2001).

Opinions

OPINION AND ORDER

Introduction

¶1 The State Bar of Montana has petitioned this Court to increase the annual dues for active members of the State Bar from $100 to $150, to increase the dues for inactive members from $50 to $75, and to amend the By-Laws of the State Bar of Montana to provide a mechanism for the Board of Trustees to report to the Court once every five years, with the report to serve as the basis for any recommendation by the Board for a change in dues. The State Bar represents that general dues for active members of the State Bar were set at $100 per year in 1974, and, some 27 years later in 2001, they remain at $100. Despite the efforts of Bar management to develop alternative sources of revenue, it became apparent in 1996 that the Bar could not continue to serve its historic purposes without a dues increase. The Board of Trustees thus put the question of a dues increase to the membership for a referendum vote. The referendum was defeated by a two-to-one margin.

¶2 The Bar further represents that expenses cannot be further reduced and that without additional funding, it will be unable to continue many of its programs. More than 56 percent of the Bar’s funding now comes from non-dues income and all substantial non-dues revenue sources have been exhausted. The State Bar budget for next fiscal year projects a deficit of $120,000, and it is estimated that in five years, absent a dues increase, the Bar will have a negative general fund balance of $248,000. The Bar’s general fund budget is approximately $800,000 per year.

¶3 The State Bar’s petition was published in The Montana Lawyer and comments were invited. Numerous objections to the Bar’s petition were lodged. Generally speaking, the objectors question the need for a dues increase. More importantly, however, they contend that when the Supreme Court ordered unification of the State Bar in In re President of the Mont. Bar Ass’n (1974), 163 Mont. 523, 527, 518 P.2d 32, 34, the Court made it clear that it would approve dues increases only as provided in the by-laws. Under the State Bar’s present by[280]*280laws, there can be no dues increase without the approval of a referendum vote of the membership. Article XV (Amendment). In the absence of a referendum vote, they contend that it is premature to present the issue to the Supreme Court for approval. Secondly, as to the proposed amendment to the by-laws regarding future dues increases, the objectors argue that, under Article XV, there is no provision for the Supreme Court to unilaterally amend the by-laws.

¶4 In response to the objectors, the State Bar acknowledges that the present by-laws specifically provide that dues may be increased only by a referendum vote of the entire membership. The State Bar, however, contends that the Supreme Court retains ultimate control over the State Bar and that as an essential function of that governance the Court must assure that funds are available to support Bar programs and services.

¶5 We agree with the objectors that under the 1974 Order unifying the Bar, the Supreme Court created a system whereby membership dues are, in the first instance, to be set by the State Bar in accordance with the by-laws of that organization, subject to the “approval” of the Montana Supreme Court. We further agree that under the present bylaws, there can be no dues increase for the Supreme Court to approve unless and until such an increase has been adopted by a referendum vote of the Bar membership. To date, there has been no referendum vote approving a dues increase. Furthermore, we cannot, consistently with the structure we established in the 1974 Order, unilaterally “approve” an increase in dues that has not first been adopted pursuant to the very by-laws envisioned in that Order. Likewise, we did not, in the 1974 Order, give this Court leeway to unilaterally amend the bylaws. Accordingly, we deny the State Bar’s petition for a dues increase and deny the request that we amend the by-laws.

¶6 However, for the reasons set forth below, we determine that the 1974 Order unifying the Bar, as interpreted by this Court in subsequent decisions, is' at best unworkable and at worst unconstitutional.

Discussion

¶7 In January of 1974, this Court invoked its constitutional power to “govern and control the practice of law in Montana.” See In Re President of the Mont. Bar Ass’n, 163 Mont. at 526, 518 P.2d at 33; Art. VII, Sec. 2, Mont. Const. In its Unification Order, the Court specifically directed that “[e]aeh active member shall pay the annual attorney license fee provided by law and shall pay such membership dues in the Unified Bar of Montana as are approved by the Montana Supreme Court and contained in the by-laws.” In Re President of the [281]*281Mont. Bar Ass’n, 163 Mont. at 527, 518 P.2d at 34.

¶8 The Court directed that an organizational committee draft a constitution and by-laws. The drafting was accomplished, and the Constitution and by-laws of the State Bar of Montana were adopted by the Supreme Court on January 23,1975. Five months later, the Board of Trustees adopted a resolution to amend the by-laws to increase the annual dues from $40 to its current $100 level for active members. The increase was approved at the first annual meeting.

¶9 The 1975 dues increase was challenged as an abrogation of the Court’s authority to control the Bar. But as noted in Douglas v. State Bar (1978), 183 Mont. 149, 598 P.2d 1078 [Douglas I], and Douglas v. State Bar (1979), 183 Mont. 155, 598 P.2d 1080 [Douglas II], a question arose as to whether the Court’s 1975 Order adopting the Bar’s Constitution and by-laws had indirectly given the Bar unilateral control over dues increases. As the Court explained in Douglas I:

It appears a major opposition to the Unified Bar of Montana was a fear of dues increases not approved by this Court. It would appear that this was one reason for our statement in the 1974 order retaining the power to approve or disapprove dues increases. However, by issuing the 1975 order adopting the constitution and by-laws substantially as presented to this Court by the organizational committee, we may have handed authority over dues increases to the Unified Bar.

183 Mont. at 153, 598 P.2d at 1078.

¶10 The Court accepted original jurisdiction to address the apparent conflict. Then in Douglas II, the Court ruled that the 1975 Order controlled for purposes of that action and held “[accordingly, the dues increase voted upon by the membership and without the approval of this Court, was proper.” Douglas II, 183 Mont, at 156, 598 P.2d at 1081. The Court in effect ratified the increase that the membership already had approved.

¶11 Ratification of the membership’s vote did not, however, signal the Court’s abdication of its reserved right to control prospective dues increases. The Court observed that:

The problem ... of future dues increases, continues to fester. We noted in the first Douglas case that a significant opposition to a unified bar in this state was prompted by a fear that fees would be increased without a vote of the full membership. These people did not want their dues increased solely by a vote of those attending the annual bar convention meeting.

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Bluebook (online)
2001 MT 108, 53 P.3d 854, 305 Mont. 279, 2001 Mont. LEXIS 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-state-bar-of-montana-mont-2001.