Woods Development Co. v. Meurer Abstract & Title Co.

1985 OK 106, 712 P.2d 30, 1985 Okla. LEXIS 176
CourtSupreme Court of Oklahoma
DecidedDecember 24, 1985
DocketNo. 59640
StatusPublished
Cited by1 cases

This text of 1985 OK 106 (Woods Development Co. v. Meurer Abstract & Title Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods Development Co. v. Meurer Abstract & Title Co., 1985 OK 106, 712 P.2d 30, 1985 Okla. LEXIS 176 (Okla. 1985).

Opinion

HODGES, Justice.

The case requires us to decide the following issue of first impression: Whether 1 O.S. 1981 § 7 (repealed 1984)1 violates the [32]*32Oklahoma and United States Constitutions in setting maximum fees for abstracting services. The District Court of Pawnee County found the maximum fee schedule established in 1910 to be advisory only, and if applied to the current abstracting industry it would be vague, economically unreasonable and confiscatory. The trial court therefore held the statute unconstitutional. The trial court’s ruling was certified for an interlocutory appeal to this Court. We conclude 1 O.S.1981 § 7 (repealed 1984) was mandatory and unconstitutional, and affirm in part, reverse in part and remand with directions the order of the trial court.

Woods Development Company (Woods or appellant), a fictitious partnership, owned realty in Pawnee County which had been subdivided into an addition. Appellant was required to furnish abstracts of the lots in the addition. Meurer Abstract & Title Co. (Meurer), the only abstract company in Pawnee County, prepared five abstracts and submitted a bill for fees in excess of 1 O.S.1981 § 7. Meurer refused to deliver the abstracts until the fees as billed were paid by Woods. Appellant originally brought this action individually and as a class action against Meurer in the District Court of Pawnee County. The class was identified as those purchasers who purchased abstracts from Meurer for the past five years and who had been charged fees in excess of the statutory fee schedule. Appellant sought a refund of charges exacted by Meurer in excess of the statutory fee schedule for abstracts ordered and delivered over the past five years. Woods, individually, also sought delivery of the five abstracts upon payment of the statutory charges.

Appellant amended its petition, also bringing suit against Atoka Abstract Company, Inc., Choctaw County Abstract and Title, Inc., Poteau-LeFlore County Abstract Company, Roberts Abstract Co., Inc., Little Dixie Abstract; and Southern Abstract and Title Co., alleging antitrust violations based upon the establishment of a monopoly and price fixing. Thereafter, appellant dismissed its action against Atoka Abstract Company, Inc.

On August 20, 1982, the trial court ordered Woods to amend its petition to include as defendants in the case all abstract companies within Oklahoma. It further ordered Meurer to complete and return any of Woods’ abstracts which had been forwarded to Meurer. Woods was ordered to pay Meurer the amount regularly charged and to remit such amount over the statutory prescribed charge into the trial court. The overcharge was to be distributed upon the ultimate ruling of the case. Appellant then filed a third amended petition on October 18, 1982, adding additional defendants to its fifth cause of action as pled in the original petition which sought an accounting and repayment to members of the class for charges in excess of the statutory charges.

On January 6, 1983, the trial court concluded the statutory fee schedule as provided in 1 O.S.1981 § 7 “is at best an advisory guide and its strict enforcement is now unconstitutional.” It reasoned that “[t]o hold otherwise, in today’s economy, would be a denial to the abstractor defendants of economic due process and a taking of property without due process of law, an act prohibited by the constitutions of both these [sic] United States and the State of Oklahoma.” The trial court directed Meurer to calculate its charges for abstracts prepared for Woods in the amount not to exceed 40 times the charges stated in 1 O.S.1981 § 7. The trial judge then certified for interlocutory appeal to this Court, upon Woods’ motion, its ruling regarding the unconstitutionality of 1 O.S.1981 § 7, finding its ruling materially affected a substantial part of the merits of the controver[33]*33sy and that immediate appeal may ultimately advance the determination of the litigation. 12 O.S.1981 § 952(b)(3).

The question sought to be reviewed in this case is whether the trial court was correct in holding 1 O.S.1981 § 7 unconstitutional and unenforceable, if applied, because it would deprive appellees and all similarly situated of their property without due process of law in violation of the Oklahoma and United States Constitutions.2

Appellant urges in its petition and amended petition in error the statutory provision for setting the maximum amount to be charged is mandatory, not advisory; that Section 7 is a constitutional expression of the legislative intent to regulate the maximum amount the abstract companies may charge for the preparation of abstracts; and that said statute is constitutional.

The Oklahoma Land Title Association has filed an amicus curiae brief herein.

The abstracting industry because it “is affected with a public interest,” is subject to regulation by the State under the inherent police power. Application of Richardson, 199 Okl. 406, 184 P.2d 642, 644 (1947). It is a fundamental principle that such regulation must be reasonable so as not to be violative of the provisions of the federal and state constitutions.

The threshold question is whether Section 7 is mandatory, or merely advisory as the trial court concluded. The trial court stated: “Tit. 1 O.S. (1910) § 7 has been obeyed in its breach and this Court finds that such a statute, so long ignored and unenforced, is at best an advisory guide and its strict enforcement is now unconstitutional.” Presumably the trial court’s use of the word “advisory” means “directory”.

A long-standing rule of construction in this jurisdiction is that “may” generally denotes permissive or discretional, Shea v. Shea, 537 P.2d 417, 418 (Okla.1975), while “shall” is ordinarily interpreted as implying a command or mandate. Sneed v. Sneed, 585 P.2d 1363, 1364 (Okla.1978). In our recent pronouncement in Citicorp Savings and Trust Company v. The Banking Board of the State of Oklahoma and Empie, 704 P.2d 490 (Okla.1985), we gave directory construction rather than mandatory to the word shall upon a finding of strongly persuasive contrary legislative intent. We relied upon the case of State v. Hunt, 286 P.2d 1088 (Okla.1955), which conditions a mandatory construction upon a finding that there be no contrary legislative intent apparent.

Applying this standard to the present case, we find no contrary legislative intent apparent. The statutory fee schedule had been in existence since 1910 until 1984 when it was repealed. Had the Legislature intended the fee schedule to be directory it could have easily changed the word shall to may to make the fee schedule permissive. Further support of this position is found in 1 O.S.1981 § 8 (repealed 1984) which made it a misdemeanor to “violate any provisions of this chapter” and 1 O.S.1981 § 10 (repealed 1984) which provided that an ab-stractor “shall be guilty of the crime of extortion” for failing to provide an abstract “for a reasonable consideration, which in no case shall exceed the fees prescribed in this chapter.”

We think that the word “shall”, as it clearly appears in Section 7, was intended by the Legislature to make the fee schedule mandatory. We, therefore, find error in the trial court’s conclusion that Section 7 is merely advisory and that portion of the order should be reversed.

Having found the statute mandatory, we now examine its constitutionality.

Appellees argue the enforcement of the 1910 fee schedule today would be unconstitutional.

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Related

Woods Development Co. v. Meurer Abstract & Title Co.
1985 OK 106 (Supreme Court of Oklahoma, 1985)

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Bluebook (online)
1985 OK 106, 712 P.2d 30, 1985 Okla. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-development-co-v-meurer-abstract-title-co-okla-1985.