Young v. Flathead County

786 P.2d 658, 241 Mont. 223, 47 State Rptr. 226, 1990 Mont. LEXIS 41
Montana Supreme Court·Decided February 6, 1990·No. No. 89-175·Published·Cited by 1 cases

Opinion

JUSTICE HUNT

delivered the Opinion of the Court.

This is the second appeal of a case involving a condominium development on Flathead Lake known as the Caroline Point Estates & Yacht Club. The first appeal is reported as Young v. Flathead County (Mont. 1988), 232 Mont. 274, 757 P.2d 772, 45 St.Rep. 1047 (Young I). In Young I, defendant, Flathead County, appealed from a judgment of the Eleventh Judicial District Court, Flathead County, in favor of defendants-intervenors, Albert Seeley, West Central Resources, Inc., R.C. Lee & Associates, Inc., Tri-Fortune Investments, Inc., Early Bird Investments, Ltd. and Early Bird Properties, Inc. (Developers). We reversed and remanded for further proceedings. On remand, the District Court denied the Developers’ motion for an evidentiary hearing and entered judgment in favor of the County. The Developers appeal. We affirm.

The following issues are raised on appeal:

1. Whether, on remand, the District Court erred in refusing to conduct an evidentiary hearing on the issue of proximate cause.

2. Whether, on remand, the District Court erred in refusing to conduct an evidentiary hearing on the issue of justifiable reliance.

3. Whether, on remand, the District Court erred in denying the Developers’ motion to reinstate the original judge following his withdrawal from the case.

In Young I, landowners adjacent to the Caroline Point condominiums filed a complaint against the County, challenging the procedures followed in developing the project. The Developers intervened in the suit and filed a cross-claim against the County, alleging that they justifiably relied upon representations made by the County that the regulations applying to subdivision development did not apply to the Caroline Point project. The Developers further claimed that, after they acted in reliance upon the representations made by the County, the County arbitrarily and capriciously prohibited further development, which resulted in financial damages.

The District Court granted summary judgment to the Developers, holding that they justifiably relied upon the County’s representations and that they were entitled to damages proximately caused by their reliance. Following a trial, the District Court awarded damages in excess of $2,000,000. The County appealed.

[226] On appeal, we overturned the District Court’s money judgment in favor of the Developers because 1) the District Court erroneously excluded relevant evidence offered by the County on the issue of proximate cause; 2) the Developers failed to prove that the County’s representations were the sole proximate cause of their damages; and 3) the District Court erroneously concluded that the Developers justifiably relied on representations made by the County that the condominium project was not subject to subdivision regulations. We reversed and remanded “for further proceedings consistent with this opinion.” Young I, 757 P.2d at 779, 45 St.Rep. at 1055.

After remittitur, the Developers moved the District Court to schedule a hearing for the purpose of receiving additional evidence on the issues of proximate cause and justifiable reliance. The County, in turn, moved the court to substitute the presiding judge under § 3-l-804(g), MCA, or, in the alternative, to enter judgment in favor of the County on the Developers’ claim for damages.

By order dated July 13, 1988, Judge Jack L. Green withdrew from jurisdiction and, on August 8, 1988, Judge Michael H. Keedy assumed jurisdiction. The Developers then filed motions for reinstatement of Judge Green or, in the alternative, for substitution of Judge Keedy. Judge Keedy denied the motion for reinstatement but granted the motion for substitution, withdrawing from the case on December 13, 1988. Judge Thomas A. Olson assumed jurisdiction the following day.

On February 13, 1989, a hearing was held on the Developers’ earlier motion for an evidentiary hearing and the County’s motion for entry of judgment in its favor. On March 2, 1989, the District Court entered judgment for the County, holding that, based upon our Opinion in Young I, the County did not proximately cause any damages to the Developers and that the Developers did not justifiably rely on the County’s opinion regarding whether the condominium project was a subdivision subject to review. From this judgment, the Developers appeal.

The Developers first argue that our decision in Young I required the District Court on remand to conduct an evidentiary hearing to allow the admission of the County’s erroneously excluded evidence as well as any rebuttal thereto by the Developers and then, after the hearing, to make a new determination of whether the County proximately caused damages to the Developers. A careful reading of Young I, however, demonstrates that our direction to “remand for further proceedings consistent with this Opinion” did not [227] require the District Court to conduct additional evidentiary hearings as argued by the Developers.

In Young I, we gave two separate and independent grounds for holding that the District Court erred in finding that the County had proximately caused the Developers’ damages. First, we stated that the Court erroneously excluded evidence offered by the County that was pertinent to the issue of proximate cause. Had this been the only reason for our reversal on the proximate cause issue, a new trial would indeed have been warranted.

We did not, however, rest our determination of the proximate cause issue on this one reason alone. We went on to state:

Further, since other factors — the economy, failure to secure additional financing, and especially the inability to secure approval of the sewage system — had an impact on the resulting damage, Developers cannot claim the County’s representations alone ‘proximately caused’ the damage. Where more than one possible cause of damage appears, the plaintiff must eliminate causes other than those for which the defendant is responsible. [Citation omitted.] Developers’ failure to separate the causes and damage bars them from arguing proximate cause is satisfied in this case. Numerous interruptions in the chain of events occurred that could be considered the injury causing damage.” (Emphasis added.)

Young I, 757 P.2d at 777-78, 45 St.Rep. at 1053-54.

The Developers failed to prove their case on the issue of proximate cause by failing to eliminate those causes that, through no fault of the County, may have contributed to their damages. Unlike the County, which may have been prejudiced by the court’s erroneous exclusion of evidence, the Developers had a full and fair opportunity to introduce all evidence on its behalf relating to the issue of proximate cause. The Developers’ failure to separate the causes and damages must be attributed to an inability to prove that the County was the sole cause of their damages. Remand for a further hearing to allow the Developers to attempt to prove what they could not in the first instance was therefore unnecessary. First Bank (N.A.)-Billings v. Clark (Mont. 1989), [236 Mont. 195,] 771 P.2d 84, 92, 46 St.Rep. 291, 300.

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Young v. Flathead County, 786 P.2d 658, 241 Mont. 223, 47 State Rptr. 226, 1990 Mont. LEXIS 41 (Mo. 1990).

786 P.2d 658 (Young v. Flathead County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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