School District No. 1 v. Driscoll

568 P.2d 149, 173 Mont. 492, 1977 Mont. LEXIS 852, 96 L.R.R.M. (BNA) 2492
CourtMontana Supreme Court
DecidedAugust 17, 1977
DocketNo. 13604
StatusPublished
Cited by3 cases

This text of 568 P.2d 149 (School District No. 1 v. Driscoll) 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 District No. 1 v. Driscoll, 568 P.2d 149, 173 Mont. 492, 1977 Mont. LEXIS 852, 96 L.R.R.M. (BNA) 2492 (Mo. 1977).

Opinion

MR. JUSTICE HARRISON

delivered the opinion of the Court.

This is an appeal from a judgment of the district court, Silver Bow County, awarding defendant school supervisor accrued sick and annual leave, and his contractual salary for the months of May and June, 1975.

[493]*493At the outset we note in view of the failure of appellant School District to set forth the issues of its case as provided by Rule 23, M.R.App.Civ.P., we will discuss this matter on the issues as delineated and set forth by respondent.

Issues I and II ask this Court to determine whether the district court properly interpreted the clauses of the collective bargaining contract concerning wages, hours and working conditions entered into by and between Butte Teamsters Union, Local No. 2 and the School District.

Issue III is directed at the court’s finding that respondent was entitled to his contract pay for the months of May and June, 1975.

The trial court found respondent Maurice Driscoll was a party to three contracts with School District No. 1, not two as alleged by the School District. The first contract was a collective bargaining agreement executed by and between the School District and Butte Teamsters Union, Local No. 2 as the sole bargaining representative for all administrative personnel in the school system. The second contract was an individual contract executed on July 1, 1974, between Driscoll and the School District providing for an annual salary of $24,217.40. The third contract was the contract of employment of Driscoll, as a consultant to the assistant director of the Vo-Tech Center, and the Vo-Tech Center. It became effective on February 28, 1975, to run through the months of March, April, May and June, 1975.

“13-725. Where all the parties who unite in a promise receive some benefit from the consideration, whether past or present, their promise is presumed to be joint and several.”

“13-726. A promise, made in the singular number, but executed by several persons, is presumed to be joint and several.”

These sections correspond directly with their California predecessors and present counterparts, sections 1659 and 1660, Cal.Civ.C. 1954.

No Montana cases are clearly on point here. California courts, however, have made numerous distinctions regarding these statutes. In a recent case, Vincent v. Grayson, 30 Cal.App.3d 899, 906, [494]*494106 Cal.Rptr. 733, 738, the court stated that the language of “ ‘1/ We hereby promise and agree to pay * * *’ ” imparts joint and several [liability]. In Kaneko v. Okuda, 195 Cal.App.2d 217, 15 Cal.Rptr. 792, the court held that three signers of a contract and option to purchase had benefited from the consideration and hence were liable jointly and severally. In Williams v. Reed, 113 Cal.App.2d 195, 248 P.2d 147, the court held comakers of a mortgage liable jointly and severally when each note was in the form of a promise made in the singular and executed by each of the makers. Finally, in Olson v. Foster, 42 Cal.App.2d 493, 109 P.2d 388, the court held that a number of trusts were jointly and severally liable for the balance due on legal services made on behalf of and benefiting all of the trusts.

In the present case, there is no language expressly defining the liabilities of the two promisors. There is no language comparable to “I/We agree * * *”. The debt, however, is named as a total $15,000, and nowhere is it explicitly broken down into two halves of $7,500 each. It is not clear what benefit each of the promisors received from the agreement, but it specifically stated that the $ 15,000 was to be satisfaction of an earlier “disagreement between all of the parties.” What relationship the promisors each had to the earlier disagreement, or to each other, is not apparent from the papers or the court files. A prior debt, however, is sufficient to constitute consideration in a later promise regarding that debt, sections 13-501 and 13-502, R.C.M.1947, and both promisors here received a benefit from the contract. These facts raise the presumption of joint and several liability of each promisor, and as a matter of law, Schwenk is entitled to this presumption. The burden of proof is on S-W Company to rebut this presumption.

When a contract is ambiguous, the language of the parties must be considered in light of subject matter and the surrounding circumstances, as well as the positions of the parties at -the time the contract was made. Kintner v. Harr, 146 Mont. 461, 408 P.2d 487; McNussen v. Graybeal, 146 Mont. 173, 405 P.2d 447. The construction that the district court gave to the language [495]*495was just one of many constructions which could reasonably be given it. The district court erred in determining that there was no ambiguity in the contract.

It follows that the court erred in granting summary judgment for S-W Company. This Court stated in Fulton v. Clark, 167 Mont. 399, 404, 538 P.2d 1371, “Summary judgment is usually inappropriate where the intent of the contracting parties is an important consideration.” 6 Moore’s Federal Practice, Para. 56.17 [41.-1], In Fulton the contract did not specifically provide for the payment of the fees in question. The Court stated:

“* * * To determine if the agreement precludes management fees for long range services, the district court must inquire as to the conduct of the parties and as to the existence and substance of the alleged oral agreement. Whether there was an executed oral agreement, as well as whether the conduct of the parties modified the written agreement, are material questions of fact bearing on the intent of the parties. * * *” 167 Mont. 404, 538 P.2d 1374.

Similarly, here the contract does not state the extent of liability of each promisor. The intent of the parties to the contract is a genuine issue of fact and hence summary judgment is inappropriate.

The following considerations for example, would have been appropriate inquiry for the trial court to arrive at the facts. Which party was the source of the language used in the agreement regarding how payment of the debt was to be made and how and why was this language chosen? What interests, if any, did each of the promisors to the agreement, namely S-W Company and John Wight or his predecessor in interest, have in the prior dispute upon which the agreement was based? What were the income-producing capacities of each of the two parcels of land in which the promisors owned interests at the time of the agreement, and was this information within the knowledge of all parties at the time? What was the relationship between the promisors at the time of the agreement?

The remaining issue is whether Wight (the Wight Trust) should have been joined as a party at the district court level. Neither S-W Company nor Schwenk raised the issue of joinder be[496]*496fore appeal. In his amicus brief Wight claims, however, that he should have been joined as a party, and it appears that he did not know of the action pending in district court. Under Rule 19(a), M.R.Civ.P., the court is required to join a person subject to service of process if:

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Bluebook (online)
568 P.2d 149, 173 Mont. 492, 1977 Mont. LEXIS 852, 96 L.R.R.M. (BNA) 2492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-district-no-1-v-driscoll-mont-1977.