Shaw v. City of Kalispell

340 P.2d 523, 135 Mont. 284, 1959 Mont. LEXIS 53
CourtMontana Supreme Court
DecidedJune 3, 1959
Docket9967
StatusPublished
Cited by9 cases

This text of 340 P.2d 523 (Shaw v. City of Kalispell) 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
Shaw v. City of Kalispell, 340 P.2d 523, 135 Mont. 284, 1959 Mont. LEXIS 53 (Mo. 1959).

Opinions

MR. JUSTICE CASTLES:

This is an action for an injunction brought by the six named plaintiffs against the City of Kalispell, its mayor, aldermen, and clerk, in connection with a special improvement district created for the purpose of participating with the Montana [286]*286Highway Department and United States Bureau of Public Roads in the improving, widening and reconstruction of sections of U. S. Highway No. 2- and U. S. Highway No. 93, within the-boundaries of the City of Kalispell and therefore a part of its street system. The plaintiffs allege that they brought the action on behalf of themselves “and for the benefit of all of the other owners of property within said special improvement district:”

At the time of the filing of the complaint, the plaintiffs also filed three affidavits in support of a request for a temporary restraining order and. an order, to show cause why an injunction pendente lite should not issue. The court did not issue a temporary restraining order but did issue an order to show cause aá requested. Following the' hearing on the order to show cause, the court issued an order denying the requested injunction pendente lite. .

A' general demurrer to the complaint was overruled. Subsequently an answer was filed by the defendants to which a demurrer was interposed. This demurrer was overruled.

In the complaint, the plaintiffs attack the validity of the creation of Special Improvement District No. 294 of the City of Kalsipell on several grounds. These grounds may be roughly divided into three categories.

The first ground of attack is that the City failed to mail copies of the notice of the passage of the resolution of intention to create the special improvement district to two couples, Frank N. Shaw, who is one of the named plaintiffs, and his wife, Lillian E. Shaw, and John H. Dewell and his wife, Thelma A. Dewell. It is alleged that they were persons having real property within the proposed district. The Dewells and Lillian E. Shaw were not named as parties plaintiff.

The second ground of attack was that the defendants had acted capriciously, arbitrarily, wilfully, and in fraud of the plaintiffs in á number of particulars in creating the district. It was alleged that the defendants had used improper standards and reason in making their official determination of the [287]*287area that would be benefited by the improvement; that much of the land in the proposed district was zoned for residential use; and that a uniform yardstick of distance was not used by the city council in fixing the boundaries of the district.

The third ground of attack was that a portion of the area included in the district had been annexed to the city some two years ago, but that the annexation proceedings had been improperly taken at that time. It was not alleged that any of the plaintiffs had property in the annexed area or that any owners of property within the annexed area were complaining or had ever raised any question about the legality of such annexation proceedings.

In the answer filed by the defendants, it was admitted that no notice had been mailed to either the Shaws or the Dewells, but it was alleged that if they were owners by reason of purchasing their respective properties under contracts for deed or otherwise, such contracts had never been recorded nor did the defendants have actual knowledge of such claim of ownership. It was also alleged that notices had been properly mailed to the record owners of the property in each instance and that the notices had been published as required by law.

It was further alleged in the answer that each of the named plaintiffs had participated in the proceedings by filing protests, including the plaintiff, Frank N. Shaw, and that his wife, Lillian E. Shaw, had likewise filed a protest. It was also alleged that the total protests received were from owners of only 23.03 percent of the land in the proposed district and that the tract of land apparently purchased by the Dewells under an unrecorded contract was so small that the percentage of area protested would not have materially increased had they filed a protest.

Two affirmative defenses were set up in the answer.

The first was that the Shaws and Dewells did not avail themselves of the statutory right to record their contracts so as to give notice of their claim of ownership in the respective parcels of land; that they were therefore estopped to deny the [288]*288validity of the actions of the • defendants who caused a diligent search to be made' to determine the names of persons having property within the district'; and that they had no actual knowledge of the- interest claimed by the Shaws and the Dewells.

The second affirmative defense was that the plaintiffs are not qualified to maintain this action in a representative capacity and that therefore the action has not been brought in the name of the real parties in interest; that a very great number of persons whom the plaintiffs purport to represent do not wish this litigation; that many favor the project and have worked long and hard for its accomplishment; that owners of only 23.03 percent of the area in the proposed district filed written protests; that all persons objecting to the proceedings, including the plaintiffs, had an ample opportunity to be heard under the provisions of section 11-2206, K..C.M. 1947, and are therefore now estopped to deny the validity of the actions of the defendants.

At the outset of the trial, an objection was made by the defendants to the introduction of evidence by the plaintiffs on the ground that the complaint did'not state a cause of action. After argument, the objection was sustained. Notwithstanding this ruling, the court permitted the plaintiffs to make a lengthy “offer of proof” as to what evidence they would have presented had they been permitted to proceed. The defendants objected to this procedure and to the “offer of proof.” The court denied the offer of proof.

The court then announced that it would take the ease under advisement on the basis of the facts pleaded on the question of the necessity, under section 11-2204, of the city cleric to mail copies of the notice of the passage of a resolution of intention to' create a special improvement district to persons purchasing real property within the' proposed district under an unrecorded contract for deed, when the city officials had no actual knowledge of such ownership interest, and the additional question [289]*289of the right of the plaintiffs to attack in this proceeding, the validity of such proceedings.

The defendants moved for a'judgment of dismissal of the action on the merits and this motion was also taken under advisement, time being granted for the filing of briefs. Subsequently the lower court made and filed findings of fact and conclusions of law in which it simply found that the Shaws and the Dewells were persons having property and residing within, the proposed district; that no notice had been given them under section 11-2204; and that the Shaws had waived the defect of failure of required notice by filing protests in the proceedings.

From these findings the court concluded that the plaintiffs were entitled to judgment as prayed for. A decree was entered stating that the proceedings of the defendants, creating the special improvement district, were invalid and that the defendants were enjoined and restrained from further acts and proceedings in connection therewith. Exceptions to the findings were filed by both parties.

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Shaw v. City of Kalispell
340 P.2d 523 (Montana Supreme Court, 1959)

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Bluebook (online)
340 P.2d 523, 135 Mont. 284, 1959 Mont. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-city-of-kalispell-mont-1959.