Scott v. Bank One Trust Co.

577 N.E.2d 1077, 62 Ohio St. 3d 39, 1991 Ohio LEXIS 2284
CourtOhio Supreme Court
DecidedOctober 9, 1991
DocketNo. 89-1655
StatusPublished
Cited by61 cases

This text of 577 N.E.2d 1077 (Scott v. Bank One Trust Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. Bank One Trust Co., 577 N.E.2d 1077, 62 Ohio St. 3d 39, 1991 Ohio LEXIS 2284 (Ohio 1991).

Opinion

Per Curiam.

The federal district court has certified the following questions to this court:

“1. Is Rule XVI of the Ohio Supreme Court Rules of Procedure [providing for federal certification of state-law questions] constitutional under [A]rticle IV, [S]ection 5 of the Ohio Constitution?
“2. Whether spendthrift trusts are valid and enforceable under Ohio law. Specifically, is the spendthrift clause contained in the Brewer Trust enforceable under Ohio law?”

Scott contends that both questions should be answered “no.” Bank One contends that they should be answered “yes.”

I

This case comes here pursuant to Section 1, Rule XVI of the Supreme Court Rules of Practice: “The Supreme Court may, at its discretion, answer questions of law certified to it by the Supreme Court of the United States, a Court of Appeals of the United States, or a United States District Court. * * * ” The first certified question in this case is whether Rule XVI itself is consistent with the Ohio Constitution.

In addressing this question, the parties focus on whether we have jurisdiction under Section 2, Article IV of the Constitution to answer certified questions. It is well settled, of course, that neither statute nor rule of court can expand our jurisdiction beyond the constitutional grant. State, ex rel. Ellis, v. Bd. of Deputy State Supervisors (1904), 70 Ohio St. 341, 348, 71 N.E. 717, 718; Humphrys v. Putnam (1961), 172 Ohio St. 456, 460, 17 O.O.2d 424, 426, 178 N.E.2d 506, 509; State, ex rel. Cleveland Municipal Court, v. Cleveland City Council (1973), 34 Ohio St.2d 120, 122, 63 O.O.2d 199, 200, 296 N.E.2d 544, 547; State, ex rel. Coyne, v. Todia (1989), 45 Ohio St.3d 232, 237, 543 N.E.2d 1271, 1276. If Rule XVI expanded our jurisdiction, we would have to declare it unconstitutional.

[42]*42However, jurisdictional analysis is irrelevant to Rule XVI’s constitutionality, for a court does not exercise jurisdiction by answering a certified question. “Jurisdiction” means “[t]he power to hear and determine a cause * * *.” Sheldon’s Lessee v. Newton (1854), 3 Ohio St. 494, 499. By answering a state-law question certified by a federal court, we may affect the outcome of the federal litigation, but the federal court still hears and decides the cause. Therefore, answering a certified question is not an exercise of jurisdiction.

Thus, we need no grant of jurisdiction in order to answer certified questions. Conversely, our jurisdiction under Section 2, Article IV cannot be the source of our power to answer such questions. If we have such power, we must seek it elsewhere.

In our view, such a power exists by virtue of Ohio’s very existence as a state in our federal system. We begin with a truism: the Ohio Constitution permits the state to exercise its own sovereignty as far as the United States Constitution and laws permit. Since federal law recognizes Ohio’s sovereignty by making Ohio law applicable in federal courts, the state has the power to exercise and the responsibility to protect that sovereignty. Therefore, if answering certified questions serves to further the state’s interests and preserve the state’s sovereignty, the appropriate branch of state government — this court — may constitutionally answer them.

The state’s sovereignty is unquestionably implicated when federal courts construe state law. If the federal court errs, it applies law other than Ohio law, in derogation of the state’s right to prescribe a “rule of decision.” “By allocating rights and duties incorrectly, the federal court both does an injustice to one or more parties, and frustrates the state’s policy that would have allocated the rights and duties differently. The frustration of the state’s policy may have a more lasting effect, because other potential litigants are likely to behave as if the federal decision were the law of the state. In that way, the federal court has, at least temporarily, made state law of which the state would have disapproved, had its courts had the first opportunity to pass on the question.” McCree, Foreword, 1976 Annual Survey of Michigan Law (1977), 23 Wayne L.Rev. 255, 257, fn. 10.

The danger is scarcely theoretical. Federal courts acknowledge that they frequently err in applying state law that is unclear or unsettled. See, e.g., United Services Life Ins. Co. v. Delaney (C.A.5, 1964), 328 F.2d 483, 486-487, fn. 5-9 (collecting cases where state courts rejected federal interpretations of state law); W.S. Ranch Co. v. Kaiser Steel Corp. (C.A.10, 1967), 388 F.2d 257, 264-265, fn. 11-16 (Brown, J., concurring and dissenting) (collecting cases), reversed (1968), 391 U.S. 593, 88 S.Ct. 1753, 20 L.Ed.2d 835. Indeed, some federal judges consider state-law interpretation so hazardous that they com[43]*43pare it to “prophecy.” See Nichols v. Eli Lilly & Co. (C.A.10, 1974), 501 F.2d 392, 393; Reid v. Volkswagen of America, Inc. (C.A.6, 1975), 512 F.2d 1294 1; Brown, Certification — Federalism in Action (1977), 7 Cumberland L.Rev. 455. As United States Circuit Judge Alan Norris has remarked, certification frees federal courts from “having to guess how state courts will decide important questions of state law.” (Emphasis sic.) Norris, The Bicentennial of Judicial Federalism (1990), 53 Ohio St.3d lvii, lviii.

Another federal judge has argued that it matters little if a federal court errs in applying state law, because if “state law is so unclear that a federal court, honestly trying to discover and apply it, falls into error * * * the relevant state policies are so lacking in development and firmness that their nonapplication in a diversity case is not of very great moment.” Wright, The Federal Courts and the Nature and Quality of State Law (1967), 13 Wayne L.Rev. 317, 320. 2

We respectfully disagree. Points of state law that seem unclear to federal courts may be quite clear to “[ijnformed local courts,” which “may find meaning not discernible to the outsider.” Louisiana Power & Light Co. v. Thibodaux (1959), 360 U.S. 25, 30, 79 S.Ct. 1070, 1073, 3 L.Ed.2d 1058, 1063. One cannot infer from a federal court’s honest misunderstanding of state law that the policies served by that law lack development and firmness.

Moreover, we strongly believe in the importance of accurately applying Ohio law in federal courts. “In the tension between federal and state power lies the promise of liberty.” Gregory v. Ashcroft (1991), 501 U.S.-,-, 111 S.Ct. 2395, 2400, 115 L.Ed.2d 410, 423: To the extent that a federal court applies different legal rules than the state court would have, the state’s sovereignty is diminished; as Judge McCree put it, the federal court has made state law.

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Bluebook (online)
577 N.E.2d 1077, 62 Ohio St. 3d 39, 1991 Ohio LEXIS 2284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-bank-one-trust-co-ohio-1991.