School Dist. v. Seventeenth Jud. Dist.

938 P.2d 1335
CourtMontana Supreme Court
DecidedJune 2, 1997
Docket97-214
StatusPublished

This text of 938 P.2d 1335 (School Dist. v. Seventeenth Jud. Dist.) 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
School Dist. v. Seventeenth Jud. Dist., 938 P.2d 1335 (Mo. 1997).

Opinion

938 P.2d 1335 (1997)

MALTA PUBLIC SCHOOL DISTRICT A AND 14, Petitioners,
v.
The MONTANA SEVENTEENTH JUDICIAL DISTRICT COURT, PHILLIPS COUNTY, Montana, Judge John Warner, Presiding, Respondent.

No. 97-214.

Supreme Court of Montana.

June 2, 1997.

*1336 OPINION AND ORDER

The Malta Public School District A and 14 (School District), by counsel, has filed its application requesting that this Court issue a writ of supervisory control and order in the underlying case entitled Malta Public School District A and 14, Plaintiff v. United States Fidelity & Guaranty Company, a Maryland corporation, and the Phillips County Insurance, Defendant, Cause No. DV-96-049, requiring the District Court to impanel one jury to hear both portions of the bifurcated case without any delay between trial of the bifurcated parts. The School District's request for this Court's intervention results from the District Court's April 15, 1997 Order denying the School District's motion to impanel one jury to hear both bifurcated claims, without delay between trial of each claim.

PROCEDURAL BACKGROUND

On December 24, 1995, fire damaged the Junior and Senior High School in Malta, Montana. Having purchased an insurance policy from United States Fidelity & Guaranty Company (USF & G) covering real and personal property, including the Malta Junior and Senior High School, the School District contacted USF & G to receive payment under the policy to finance rebuilding the school. The parties disputed the amounts available under the insurance policy and consequently, in May 1996, the School District filed suit against USF & G alleging breach of insurance contract.

On March 14, 1997, the District Court heard oral argument regarding numerous motions raised by the parties. After the hearing, the District Court ruled on these motions in its March 24, 1997 Order. Specifically, the District Court granted the School District leave to file an amended complaint raising a claim under the Montana Unfair Trade Practices Act, § 33-18-242, MCA. Additionally, pursuant to USF & G's motion, the District Court bifurcated the breach of contract and bad faith claims. On April 15, 1997, the District Court denied the School District's motion to try the bifurcated case before the same jury and to begin the bad faith trial immediately after the breach of contract trial. In response to the April 15, 1997 Order, the School District filed this application for writ of supervisory control.

DISCUSSION

The School District argues that this Court should accept jurisdiction over this application for writ of supervisory control. The School District contends that supervisory control is necessary in this case because the District Court's April 15, 1997 Order "constitutes such a mistake of law so as to cause gross injustice to the Malta School District such that there is no remedy or appeal or relief that can be obtained or granted...." USF & G responds that the School District's application for writ of supervisory control should be denied. USF & G argues that the District Court, in its April 15, 1997 Order, did not make a mistake of law, but rather properly exercised its broad discretion to order that the bifurcated claims be tried at separate times to separate juries.

In Plumb v. Fourth Jud. Dist. Court (1996), ___ Mont. ___, 927 P.2d 1011, 53 St.Rep. 1187, we clarified the standard for our exercising supervisory control under Article VII, Section 2(2), of the Montana Constitution and under Rule 17, M.R.App.P. Citing State ex rel. Whiteside v. Dist. Court (1900), 24 Mont. 539, 63 P. 395, we stated that, without trying to define its particular functions, supervisory control enables this *1337 Court "to control the course of litigation in the inferior courts where those courts are proceeding within their jurisdiction, but by a mistake of law, or willful disregard of it, are doing a gross injustice, and there is no appeal, or the remedy by appeal is inadequate." Plumb, ___ Mont. at ___, 927 P.2d at 1014.

Having reviewed the relevant portions of the record and the briefs submitted in support of and in opposition to the School District's application, we conclude on the facts here that the School District has no adequate remedy by appeal fro the District Court's order. Therefore, supervisory control is proper in this case. Accordingly, we accept jurisdiction to review the substantive issues raised in this case by writ of supervisory control.

While the School District does not challenge the District Court's March 24, 1997 Order bifurcating the breach of contract and bad faith claims, the School District does argue that the District Court, in its April 15, 1997 Order, abused its discretion by denying the School District's motion to try both bifurcated claims before the same jury and to begin the bad faith trial immediately after the breach of contract trial. Specifically, the School District argues that by impaneling two separate juries and planning to allow approximately sixty days to lapse between the trial of both claims, the District Court has "severely prejudiced" the School District by denying the School District "a speedy remedy, tantamount to a denial of justice." Furthermore, the School District contends that there is no adequate remedy by appeal from having to try this case twice.

Relying on Martin v. Bell Helicopter Co. (1980), 85 F.R.D. 654, the School District asserts that the breach of contract and bad faith claims are "inextricably intertwined and related factual matters" and should not be separated for consideration by two different juries. Furthermore, the School District contends that "putting the Malta School District through two lengthy trials, with the same witnesses, to two totally separate jury panels, would do great violence to judicial economy, would be totally unfair and prejudicial to the Malta School District, would confuse rather than clarify the issues, and great inconvenience would accrue to Malta Schools. . . ." Rather, the School District suggests that if both issues were tried before one jury, the bad faith claim would only require one to two days to complete, if immediately tried after the conclusion of the breach of contract claim, and would thereby avoid any unfairness or prejudice to the School District.

USF & G responds that the School District's argument that separate trials before separate juries will be non-economical and inconvenient is unpersuasive. Rather, USF & G argues that interests involving economy and convenience "must yield to the right to a fair and impartial trial to all litigants." USF & G contends that to require an immediate second trial before the same jury defeats the bifurcation objective to eliminate any prejudice to USF & G. Accordingly, USF & G asserts that the District Court did not abuse its discretion by ordering that each claim be tried at separate times to separate juries. Consequently, USF & G argues that this Court should deny the School District's application for writ of supervisory control.

In its March 24, 1997 Order, the District Court granted the School District's motion to amend its complaint to raise a claim under the Montana Unfair Trade Practices Act and also granted USF & G's motion to bifurcate this bad faith claim from the original breach of contract claim as authorized by § 33-18-242, MCA.

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Bluebook (online)
938 P.2d 1335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-dist-v-seventeenth-jud-dist-mont-1997.