*1 plaintiff rely et title suit. While the must title,
on his own he need not have a title The OKLAHOMAEDUCATION ASSOCI superior persons parties ATION, INC., Petitioner, to the suit. It suffices if he has some kind of an estate in the property, legal equitable, which is George NIGH, Spencer The Honorable paramount to that of the defendant.12 Bernard, Daxon, Tom Leslie Fisher and plaintiffs here legal cannot derive Craig, Jack as Commissioners of the comfort from flaw in the title to State’s Office, Respondents. Land the fee. In prevail they order to must show No. 57361. a mineral interest of their own. That min- eral interest was Dearings’ lost when the Supreme Court of Oklahoma. title to the “farm” became divested resale tax deeds. Feb. 1982.
Reversed and remanded with directions Rehearing Denied March quiet title in defendants below. IRWIN, J., BARNES, J., C. V. C.
HODGES, LAVENDER, DOOLIN, and
HARGRAVE, JJ., concur.
SIMMS, J., dissents.
SIMMS, Justice, dissenting.
I must Dissent. The majority, my
opinion, misapprehended has dispositive
issue in appeal. It is May this:
state claim the mineral interest when its
title rests on a Sheriff’s Deed executed
pursuant to the 1944 mortgage foreclo-
sure—when the in question land WAS NOT
MORTGAGED? The mortgage had been
released discharged of record in 1929.
I would affirm the trial judgment court’s
in favor of plaintiffs these (appellees). Okl., Langley, 666; Reneau, Welch v. 264 P.2d note 10 at Smith v. 188 Okl. [1953]; Logan, [1941], Pearson v. 208 Okl. 112 P.2d [1953]; Reed, P.2d supra Blanchard v. *3 Counsel, Long,
Karen L. Gen. Oklahoma Ass’n, Inc., Ed. City, petition- Oklahoma for er. Gen.,
Jan Eric Cartwright, Atty. Neal Leader, Gen., Atty. Asst. City, Oklahoma intervenor/petitioner, for Atty. Gen. of Okl. Montazzoli, Keith McMillin and John E. Kornfeld, McMillin, Phillips Upp, & Oklaho- City, respondents. ma for Tyree, Lana Jeanne City, Oklahoma intervenors, Independent Districts School 41, # # 12 and # 52 of County, Oklahoma and Independent School Dist. # 20 of Le- County, Flore Okl. Groves,
William Bleakley, Bleakley P. & Tague, intervenors, City, Oklahoma In- dependent School Dist. # 89 of Oklahoma County, and Vocational-Technical School Dist. # 22 County, of Oklahoma Okl. Phil A. Daugherty and R. Haught, Steven City, Oklahoma intervenors/respon- dents, James, R. H. et al. Godlove, 86.1, Godlove, Joyner, Mey-
Ernest F. O.S. O.S.Supp. § § Inc., Lawton, Mayhall, ers & interve- 52(c), O.S.Supp. and 64 § nors, Glover, Earl et al. O.S.Supp. 260.2.1 Petitioners contend that these statutes
BARNES, Chief Vice Justice: prohibit Respondents, Office, the Land complying with the original Court jurisdic- This has assumed terms and purposes the Oklahoma Enab- 57,361 tion of Case No. sole purpose Act,2 ling Congress 16, 1906, Act of considering constitutionality June of 64 (8* n %)per percent annum, eight 1. 64 O.S. 86.1: and one-half payable annually paid. semiannually, “The Commissioners of until the Land Officewhen re-leasing preference right delinquent installments, principal All lands both charge interest, and collect therefor an annual at shall bear interest a rate ten equal percent (3%) rental to three fair percent (10%) per paid. annum until All such thereof, cash market value im- exclusive of paid loans shall the manner and within provements, *4 as determined and fixed the period may required of time as be the appraisal provisions of such lands under the of Office; provided, of the Commissioners Land 86, 64, Statutes, 1951, Section Title Oklahoma any paid the entire amount of within a shall loan be provided that the Commissioners of Land the period thirty-three of not to exceed may, Office whenever the market the value of years (33) Provided, the from date of loan. the greater is land than its market value for the further, persons receiving fifty percent purpose leased, being charge for it which is and (50%) or of their more total annual income collect an annual rental of not less than three operation given from the preference by of a farm shall be percent (3%) of the value the of land for the approval the Commissioners purpose may to which it is or be devoted under any of loans made under the of Every speci- the terms of the lease. lease shall act.” fy purpose and limit the for which land the 1974, O.S.Supp. 100: used, improvements shall be no and or struc- price any purchase “The of balance the of necessary tures of such use land all and lands sold the the Commissioners of agricultural grazing purposes placed or shall be Land Office after effective date of this act authorizing thereon. No lease land for grazing the use of such under sales contract shall bear interest at the purposes agriculture other than and (7'/ n %) percent per of rate annum. All cipal seven and one-half operate ratify previous shall ac- installments, delinquent prin- any both tion of tures than who lessee improvements have erected struc- interest, and shall interest at rate purposes and bear other agriculture percent (10%) per paid.” grazing, of ten 64 annum until and no such lease 1976, (2) O.S.Supp. shall extend for a term of more than 260.2: two years.” “Every holding preference right lessee lease who, 64 O.S. agricultural grazing ap- § 89: on or lands after right “Preference lease lands be rented praisement purposes, for rental desires to re- by the Commissioners of the Land Office covering new said lease the same tracts of land years of terms per five at an annual rental of four application of shall make to the Commissioners (4%) appraised centum value of such Land for a lease on or Office new before Provided, improvements. lands exclusive of expiration preceding 1 next October however, opinion if in the of the Commission- existing applicants of other term his lease. All Office, per (4%) ers Land four centum proper lease on said land shall make then, high, proper showing too may the rental pre- application on before November 1 next or per be reduced to not less than two cen- ceding expiration existing If of such lease. (2%) by tum the Commissioners of Land complied good has the current lessee faith departmental appraisement Office. The land requirements existing all with of his lease lands such including shall be the basis rental and the satisfaction Commissioners of year or until said be lands Office, new Land lease shall be awarded to appraised again, which the lessee, if de- said current the Commissioners during the Land Office are directed to do be cide said land leased.” year and in no event than later the month September, 1936.” Act, Congress Act of Oklahoma O.S.Supp. 52(c): 16, 1906, Large, pp. U.S. 267- June St. at “(c) All farm loans made the Commission- 278, provides pertinent part: ers of the Land Office of the State of Oklahoma 7. That of the State “§ the admission jurisdiction from the trust funds under their into the Union numbered sixteen control, sections provided and of this as otherwise the laws thirty-six, every township Ter- state, in Oklahoma shall bear at the interest rate 267-278, Large, 7, 8, 9, imposed upon at pp. managers U.S. St. them as of this §§ (the being Trustee) which established this State’s School trust under Trust, prohibit XI, Land and said statutes Re- Article Section and Section spondents from complying with the 5 of the duties Oklahoma Constitution.3 There- interest therein ations. The shall be reimbursed all
authorities in leases not in conflict herewith. scribe additional ee without the consent of the royalty addition to all the agricultural and no transfer or sible bidder. The advertisement shall competition sealed years by law, vertisement in the manner to be Act to the State of Oklahoma are valuable for sold may nineteen hundred and minerals, as the third . . . served under said charitable and buildings, tofore selected in lieu third; of the normal schools now established or Colored the use and benefit of the ma and the hereafter to be tion issued dred and the the Pawnee Indian hereby since said date and section lands which have been or settlement in the all lands heretofore selected in lieu the President of the ed in lieu Outlet, ritory State schools.. . “Where “That section “§ proceeds damage fund to which that shall lands, Agricultural purpose, and all such by be be valid or confer 8. That section and all for the use and bids and awarded to the Legislature sfs [*] to be reserved and leased for the said State Agricultural the State officers gas and shall be any part ninety-three, opening any thereof, University lessees in done to said Tonkawa Indian Reservation and after not less than August from leases shall be covered into Legislature [*] such indemnity paid by writing: Provided, however, [*] by any bonus offered for the thirty-three, penal established, one-third; and Mechanical Territory Oklahoma, leasing apportioned of said State reason of such legislation governing leasing oil, proclamation, [*] of the lands periods specify [*] are United States by nineteenth, Reservation; assignment granted Normal possession the successful thirteen in the Cherokee Preparatory Act or Acts of such lands shall not be institutions and any right benefit of the common fifteen; thereof, prior the lands heretofore select- hereby granted of the State University [*] shall be made to [*] shall be done under agricultural in each case a fixed duly thirteen mining and all lands here- to to said State for properly *5 University, and require highest granted by thirty [*] may prescribe. exceeding [*] authorized for but the same heretofore re- eighteen prescribed January in the to settlement of such lands be of proper and Acts for mining oper- by proclama- College School, reserved disposed lessees for of Oklaho- thereof, any opened lease, bidder, may pre- by Congress [*] days all other [*] and the lessees’ respon- belong, assign- and of public to the public State lease such first, hun- one- one- and five ad- by of 3. Article inviolate. It be diminished. The Article provides fund held State shall reimburse said nies derived from the sale of or donated.” uses and provides as a sacred trust and to and donations of whether States under the reserved for til such time as as existing other lands under not be entry ture shall est bid tions as the such periods three rules and prescribe, to homestead the land laws of the United acre tracts or scribe, preference right sold at for school under such prescribe, surveyed to constitute a ten est of support . . . and the faith of the State is the lessee at the time of such the said State to hundred and for the may such rules and and lands taken in lieu “. . . The “The State “10. That said sections thirteen and preserve “9. That said sections sixteen and aforesaid such lands purchase years; be sale, under the land laws of the United aforesaid, existing subject : n XI, being given which support of not more than five public appraised rule...” of such schools. But said lands XI, surveyed purposes and until such time as the regulations be leased for purposes only. prescribe but such lands and such lands shall not be Section Oklahoma pertinent part: pertinent part: granted such lands and monies and all mo- regulations principal Legislature designated purposes Section Oklahoma the State and shall forever remain unsurveyed, at the hereby accepts tfs less, sixty to homestead entry permanent only rules and regulations may sale, of the common the if provisions be increased but shall never money and sold at for which or under such rules and sold, may to the lessee at the time of [*] to the State shall be highest acre tracts or Legislature prescribe, preference right shall be in one hundred and such rules these and all unsurveyed, shall be deemed a trust as the to as the thereof, of said State keep periods shall be leased under regulations, but shall be reserved made purchase n : school fund the inter- as the may bid entry other all years, sale, public expended the Legislature Legislature may States, hereby pledged schools, shall : by n being given grants herein appraised not to exceed be leased for Legislature only, were of said lands Enabling Constitution, Constitution, same or but shall be entry at the the United under such less, sale in one any and shall prescribe thirty-six, may pre- proceeds n whether granted Legisla- and un- granted of land subject regula- States, if leased in the thirty- under under other high- sixty may, shall sold, Act the fore, out requiring these said the current lessee to Petitioners contend exceed statutes are unconstitutional. other match bids. statutes, Two of the 64 O.S. Trust, The Lands School adminis and 86.1 established maximum § § tered of Commissioners the Land charge rents which the can Office, Trustee, State consists leasing preference right when land. The granted certain lands and funds
first statute limits the rent
to but three
State of Oklahoma
its admission into
percent of the land’s fair market value and
the Union
the Enabling
gift
Act. The
limits the
second
rent to between two
Enabling
these lands
and funds under
percent
percent
four
the land’s valu Act
accepted
people
was
irrevocably
e.4
Oklahoma,
acceptance
such
was set
statutes,
O.S.Supp. 1979,
52(c),
Two
out
in the Oklahoma Constitution under
and 64 O.S.Supp.
XI,
limit the
acceptance
Article
1. These
Section
amount of interest which the Commission- provisions of the Oklahoma Constitution
loans,
charge
ers can
in making farm
Enabling
Act
an irrevo
constitute
selling
property.
52(c)
when
trust
compact
cable
between the United States
eight
limits
interest on farm
loans
Oklahoma,
com
benefit
percent,
and one-half
while Section 100 lim-
schools,
mon
which cannot be altered or
its the
that can
charged
interest
be
abrogated.5
disposition
such
No
lands
purchase
land,
price
setting
of trust
either with
funds can be
that conflict
made
rate
percent.
interest
at seven
one-half
grant
purposes
the terms and
Act or
of the Con
being challenged,
The last statute
64 O.S.
1976, 260.2,
relating
stitution
to such land and funds.6
Supp.
preference
establishes a
lands,
duty,
as Trus
right to
has an irrevocable
requiring
re-lease trust
tee,
Commission,
estate
manage
when the
the trust
land is to
re-
leased,
beneficiaries,
award the lease to the current
exclusive benefit
if
in good
disposi
lessee
he has
complied
faith
with return full value from the use and
requirements
express
existing
property.7
his
lease with-
tion
trust
permanent
provide
fund
all
school
losses which
of Section 259
that the Com-
visions
*6
any
occur,
portion
rental,
in
manner
and no
of said
fix the annual
while
missioners are to
any
pro-
fund shall
purpose.”
provisions
challenged
be diverted for
other use or
the
of
statutes
the
fixing
vide the method for
said rates.
XI,
5,
Constitution,
Article
Section Oklahoma
provides
pertinent part:
5.
of
ex rel. Mac Williamson
State Oklahoma
Q.
Office,
proceeds
.. Said
“.
lands ... or the
of
of the
P.2d
the
v. Commissioners
Land
301
kept
safely
regu
(Okl. 1956), provided
sale thereof
be
or invested and
655
that: “. . . said
preserved by
trust,
Enabling
a
the State as
which shall
as
lations
the Oklahoma
exist
[in
Act]
diminished,
to,
may
States,
be
may
never
but
be added
which
not
valid laws of the United
thereof,
the income
modified,
changed by
interest rentals or other-
be
or
an Act of
restricted
wise, only
exclusively
shall be used
Legislature
people
the
of
the
Oklahoma
benefit of said educational institutions...”
of the
Oklahoma
amendment
Oklahoma
Constitution.”
4.Respondents
argue that
86.1 and
Sec-
by implication
repealed
tion 89 were
Legislature
when the
584,
Arizona,
458,
v.
385
87
Lassen
U.S.
S.Ct.
enacted 64
which
O.S.
(1967);
designation of the
lands
as
receive
time
school
and funds
land,
disposition
of
interest in the
a
effect of
“sacred trust” has the
irrevoca-
Act,
particular
the then full value of the
inter-
bly
the
incorporating into
Thus,
being
. .
dispensed.
est which is
.
Constitution,
Oklahoma
and conditions of
the lease
trust
calls for
if
of
lands
rental
grant,
of
duties
all
rules
law and
substantially
of
less than
land’s fair
governing
of
the administration
trusts.8
”
value, it is null
.
.
rental
and void.
.
Legislature
No Act of the
can valid Similarly, in
case
ex rel.
of State
Ebke
alter,
ly
modify
duty
or diminish the State’s
Funds,
of
&
v. Board Educational Lands
as
to ad
Trustee
school land trust
(1951), the
Neb.
Respondents contend that the as ing such leases not conflict herewith.” legislative sailed expressly enactments are [Emphasis added] ordained 10 of Sections and the Enab And, 9, dealing subject with the ling Act and therefore cannot be constitu land, of selling requires trust land tionally impermissible. argument ., “be appraised public and sold at sale . . that the language literal of the Act vests in preference right purchase at highest Legislature the authority prac to enact given bid to the lessee at time of tically any or regulation rule it chooseswith ” sale. .. . These land sales are to be con- regard selling federally regulations ducted “under such rules and granted land.12 Legislature may pre- said State ” speciousness position of this is that it appears scribe .... language Similar reads selected language in isolation Section 10. When considered the context from the entire contextual content of the text, of the overall there be no can doubt relevant dictates, sections. Common sense making authority granted that the rule gift when the land of the Enab- Legislature promote was intended to rather ling whole, Act are read as a that this was than impede attainment of manifest purpose the intent or behind Sections objective Enabling provisions, Act and 10. Nor logically could it be. For if viz., rents, to assure realization of maximal Respondents correct, are then a potentially profits and returns from the trust estate self-defeating incompatibility exists be- the benefit of the school children of this tween the purpose objective stated of State. hand, the trust on the one alleged and the unbridled authority granted the Leg- of Respon also the contention It
islature to defeat that strategy by means of dents that considerations of conservation
regulations
creative rules and
on the other
waste enter into
situation and
hand.
the attainment of a maximum return to the
course,
controlling
trust
is not a
In this
Of
factor.
question
the natural
is,
respect,
point
primary pur
ask
we
out
why or for what reason did the
pose
production
of the trust is the
of income
framers of the
Act
Enabling
authorize the
Legislature
support
and maintenance of the
to make
and regulations
rules
XI,
govern
common schools of
State. Article
the administration of the trust?
An analysis
Section Constitution of Oklahoma. While
language employed
it
provides
precaution
Act
is true that reasonable
should
rather clear
*8
property
answer—the
be
for the
authority
protection
intent was to vest
in
taken
Legislature
statutory
trust,
establish
rules within the
does not mean
XI,
answer,
thing
principal,
argued
12. This same
be
with
Article
Section
in
cannot
re-
gard
loaning
given
enabling
Act
trust funds at below
is
as
market
the same
to the
interest rates. That contention
be based
has to
contention.
provision.
on a similar State constitutional
See
a manner inconsistent with the terms of the
unimportant
an
question of income becomes
vi-
grant, requiring Respondents to
original
necessary
protect
factor. Conservation
managerial
as
trustees
olate their duties
the value of the lands leased can be ade-
Trust,
vio-
and therefore
School Land
quately
controlled
lease
and
XI,
provisions of Article
Section
late the
conditions,
and
reasonable conservation
5 of the Oklahoma
and Section
Section
regulations imposed by Respondent Board.
Constitution,
and the Oklahoma
Respondents
argue that the in
also
16, 1906,
Act,
Congress
Act of
June
U.S.
preferences
vestment
contained in Article
7, 8, 9,
267-279,
Large, pp.
at
St.
Sections
XI,
Section
of the Oklahoma Constitut
Legislature does have
and 10. While the
ion,13 justify
require
statutory
and
these
to,
power
may, regulate
and
the activi-
income restrictions which benefit farmers
Commissioners,
ties of the
it can neither
justification
and ranchers. No such
can be
to func-
abridge
impair
nor
their freedom
provision.
found in this
We
constitutional
good
day-to-day
in utmost
faith in the
tion
find that the proper interpretation of said discharge
public obligation
of their
as man-
requires
preference
given
section
be
acting
while
agers of the trust estate and
the investments in the order in which
behalf of the
as Trustee.
State
appear,
long
preference
as such
does not
question
raise the
Respondents also
prevent
fulfilling
as Trustee from
State
Attorney
empow-
whether the
General
to obtain the maximum return
poli-
procedures
ered to determine what
control,
property
the trust
under its
follow,
Respondents
should
absent
cies
exercising ordinary prudence
subject to
field.
legislative occupation
valid
of the
the taking
necessary precautions
for the
VI,
Article
of the Oklahoma
Section
preservation of the
The con
trust estate.14
Constitution,15 charges Respondents with
that,
provision
provides
stitutional
nowhere
sale, rental, disposal
managing
preference,
in addition to the
farmers and
the school lands and funds under rules and
discounts,
given
ranchers are to be
rental
Legislature.
regulations of
Until
or,
preference,
because of the
they should
Legislature promulgates
time as the
new
be able to borrow trust funds at below
matter,
concerning
subject
statutes
market interest rates.
are man-
Commissionersof the Land Office
reasons,
For the above stated
we
dated
the Oklahoma Constitution
use
hold that
the challenged
require
therein,
statutes
powers
their
so
and are
enumerated
management of
property
mandated,
opinion,
trust funds and
pursuant
further
to this
XI,
rules,
restrictions,
regulations,
13.Article
Section
of the
and conditions
Oklahoma Con-
stitution, provides
part:
shall be
which the funds aforesaid
loaned
invested,
things necessary
or
safety
and do all
permanent
“The
common school and other
permanency
of the funds and
educational funds shall
be invested
first
investment.”
mortgages upon good
improved
farm lands
(and
within the state
in no case shall more than
(Okl.1964);
Pipkin
Pipkin,
239 SIMMS, Justice, to prudently their dissenting: exercise maintain the maximum return to the trust estate I must dissent. We no have facts before from the trust properties under their con- majority us in this A action. of the Court trol, course, subject, of to the of taking jurisdiction voted assume of this matter precaution necessary preservation any without factual having determination the trust estate. any been made or stipulation of facts on, agreed
Lastly, Respondents purpose” “sole of decid- and those dealing citizens Respondents ing constitutionality with have of five I statutes. authority taking jurisdiction heretofore acted under of the sub dissented to of this cause ject statutes, believing framed, accurately such statutes to be as it was or more it—as valid law. While it has often been in prob- stated was not framed-—and I believe the general an terms that unconstitutional stat lems inherent in a in decision rendered ute rights, liability, confers no creates no are abstract evident from the face of the protection,16 affords no there are well majority opinion.1 recognized general exceptions to this rule. facts, opinion is not proven based on An law ap unconstitutional should not be but on assumptions of facts which or plied hardship impose to work a liability may not be valid or accurate. Some on public official or citizen who acted assumptions those are: good faith and relied on validity (1) The the Land Of- statute before courts have it declared inval charge fice do not more than 3% the id, or until proper advised its officials of appraised agricultural value of land for unconstitutionality.17 In to protect order leases; Respondents dealing and the citizens with (2) Leases “but of appraised 3%” val- good faith, them in under the facts of this are bringing good ue the trust a case, Respondents we hold that and citizens land; fair return hereby are protected liability for (3) require The Commissioners do not any retrospective acts committed under said competitive bidding leasing, in fact unconstitutional statutes because of their require bidding cannot under the stat- unconstitutionality, and our decision invali utes. dating said will operate prospec statutes
tively from the date this opinion becomes
may may
things
These
not be true.
final.
do not
how
We
know
the Commissioners
lease land or how
establish rental
WILSON,
J.,
CHARLES
sitting
S.
price.
“good”
We
do not
also
know what a
place
IRWIN,
J.,
C.
disqualified.
who
It
agricultural
lease rate is for
land.
very
be that 3% is a
fair return for land of
BRIGHTMIRE,
J., sitting
vacancy.
S.
type. may
It
also
that the financial
LAVENDER, JJ.,
HODGES and
concur.
loss, if any, to the trust results not from the
ALA,
OP
J.
part,
concurs in
dissents
statutory
provisions,
rental
but from the
part.
appraising
method and manner of
the land.
SIMMS,
HARGRAVE, JJ.,
DOOLIN and
important
No less
fact that
dissent.
majority’s opinion
constitutionality
on the
Brown,
Shelby County,
425,
(1908);
16. Norton v.
P.
118 U.S.
6
49 Wash.
95
270
Village
City,
S.Ct.
30
L.Ed.
v.
of Garden
74
Idaho
265
(1953).
P.2d 328
County
17. Board of Com’rs of Pottawatomie
v.
Sons,
A. C. Davis &
184 Okl.
86
782
P.2d
thorough
problems
1. A more
discussion
Conner,
(1939);
Gordon v.
183 Okl.
80 P.2d
presented by deciding questions in this manner
(1938);
v. Board
Wade
of Com’rs of Har-
dissenting opinion in
Okla.
can be found in the
County,
mon
(1933);
161 Okl.
of controlling making process. repealed that decision It that and argument 86.1 § § presumed that implication, is axiomatic statutes are that by based on the rule § showing of be constitutional and the burden implication and repeals by are not favored party on the unconstitutionality rests indulged will not if another reasonable be asserting a statute is it. Also that where to be will allow all statutes construction constructions, of two one which capable being I given effect. do not believe that valid, would render it invalid other and the being unconstitutionality is stricken for uphold the construction which will its valid- of “given contemplation effect” within the must ity adopted. be The cardinal rule in repealed, the rule. I would not find 86.1 § that leg- the construction of statutes is would, above, it as discussed hold that but govern, islative intent must to ascertain would requires a minimum rental of 3%. I intent portions all the of the various repealed by implication. hold that 89 was § legislative particular upon enactments implied- I would find the statute which subject, together should be construed however, ly repealed 87a(g) it was not § general of the light purposes the Act and of 259. § given effect as a Additionally, whole. (Laws 89 was enacted in 1935 when a statute of susceptible is two inter- 25) 87a(g) p. § § pretations, that one effect giving it intend- (Laws p. 299) The be- differences by legislature adopted. ed be should recon- tween two sections cannot be of None this was done in case. this They cannot be construed harmoni- ciled. agree I do not majority’s with the deter- be, ously 87a(g) 86.1and can because as § § O.S.1971, mination that 64 86.1 establish- § provisions specific are in conflict. Sec- es a maximum An- lease-value rate 8%. floating provides tion 89 for rent between statutory other the clear provision reveals 4%, 87a(g) 2% and for a minimum § minimum, legislative a demand that 3% rent of 3%. maximum, O.S.1971, not rental rate. majority assumes competitive 87a(g) provides pertinent part: § bidding will allow the trust a fair rate “. .. appraisment Such be used val- return commensurate with the market and followed by the Commissionersof the property ue of the and strikes 86.1 §§ Land Office in fixing the annual rental because, view, they majority’s value of all preference right, lease prohibit bidding potential and limit return lands and all by such lands be leased percentage a by imposing ceiling.2 the Commissionersof the Office for Land term years, a of five at an annual rental true, still taking things these as Even (3%) less than per three cent majority’s reasoning, its under the own appraised lands, value of such exclusive 260.2 also striking of for its failure to § improvements.” require competitive bidding is un- expressly
Words can
supplied
or modified
necessary. Section 260.2 does not contain
give
establishing
price.
Court
a statute
intended
It
the effect
method
lease
legislature. See,
Reg-
dependent
e.g.,
wholly
Curtis
Oklahoma,
istered
appraisal
percentage
Dentists of
193 Okl.
determination of
(1943). Gathering
provements, us that a commis- rights reservation of inconceivable to and in- terests, rentals, composed highest sion offi- collection five conservation state, cials of the with the preservation entrusted such lands and the managing lands to effectuate the said fertility thereof and other rules and purposes they granted for were which regulations necessary in order that the state, is, funds for the provide that purposes for which such lands are owned state, use of the common schools of the by held be accom- hampered should be so and restricted in O.S.1971, plished.” 64 management prop- of such operation position Given the majority’s that permitted erties they were statutes actually prohibit competitive bid- place a valuation lands for the ding requirement leasing, it is unneces- purpose renting agricultural them sary to set out plan purposes were expressly unless au- did adopt and it. examine legislature. thorized to do so We point plan says, is not what the but nothing find in the Constitution or laws plan. the fact that plan, there is a That it prohibiting of the state the exercise of me, occurs to rather than constitutional- Commissioners, power by and as ity statutes, of these should be the focal stated, necessarily above incident it was point of this adequate, action. If it would proper to the of their trust. performance render (assuming this matter it moot was power By the exercise of this the state is viable). ever goes it Instead unmentioned. adequate assured of rentals the leased lands, Assume prior regardless fluctuating to this action value being filed, unhappy an had 943-944. brought lessee an thereof.” 232 P.2d at
Likewise,
process, by
very nature,
bid
bidding
is incom-
providing
proce-
a necessary
manage-
open
dures is
incident to the
an
market
patible with
sale.
powers
imposed
ment
Com-
process
gas
vested
sealed bid
for oil and
missioners
art.
sec. 32.
on the Commissioners of the Land Office
O.S.1971,
required by
8 of
sec.
disagree
majority’s
I
with the
conclusion
Act,
majority
cited
prohibit competitive
bid-
the statutes
support
argument
compet-
here in
of its
statutes,
I
ding.
properly
find the
when
bidding
itive
insure fair market value.
construed,
clearly compatible
are
with
imple-
competitive bidding requirement
Miller,
In
the Court stated:
Commissioners,
mented
and that
“The
is one
can
fair market value
which
*12
recognize
statutes
such
power vested in
by
neither be inflated nor deflated
refer-
Commissioners.
I
that
would hold
consist-
special types
ence to
of sales. The latter
ent with
259 and
the Commissioners
§§
open-market condi-
are not reflective of
* * *
power
exercised their
to
leas-
vested
create
tions.
ing
they
procedures
most beneficial
deemed
“By
process
nature
very
its
the sealed-bid
to
majority,
the trust. As concluded
incompatible
open
with an
is
market sale.
competitive bidding
competitive
bonus
bidding
unwill-
Sealed
reflects
seller’s
compatible
offers would be
with the stat-
ingness
bargain
in,
openly
yield
utes and
function
the trust.
of,
place.
open
the forces
market
I would hold
im-
87a(g)
that
86.1
§§
buyer
Confrontational
interaction of the
pose
requirement
a minimum income
on
with the seller is thus avoided. The value
rental, so
procedure
that whatever
es-
process
property
obtained for
sold
tablishing
used,
rent
is
the Commissioners
very
to represent
cannot be said
same
must receive a minimum rate of at least 3% price
property
as that which the
would
of the value of
land they
lease. Section
bring if it were sold under the usual and
stricken;
260.2 need not be
the rental provi-
ordinary
so
circumstances. This is
be-
sions of the other statutes control that re-
process obviously op-
cause the sealed-bid
quirement.
erates to alter those ‘economic forces’ at
play
shape
which
the fair market value.
may
Preference right leases
not even be a
short,
In
the method which the state is
problem.
real
There
not be
such
required by
price
statute to exact a
thing any longer.
slight
More than
is
doubt
per
its leases
not
se co-incidental with
cast on their continued viability by 64 O.S.
process
the market
in action.
Supp.1977,
253(D),
provides:
which
§
sion.”
“Hereafter
created
no
preference right
the School Land Commis-
lease
cedures for
“The statutorily
n :
sfc
leasing
mandated sealed-bid
sfc
state-owned minerals
[*]
n :
[*]
pro-
represent
not
Perhaps,
open
do
a sale
mar-
every
then
preference right
price
The
through
re-lease is
ket.
secured
extinguished when the
peri-
lease
process though
od
not
se
expires
per
and much of
indicative of
this lawsuit has
value,
been over
fair market
nothing.
may nonetheless be of
coupled
relevance when it is
with some
point
Another
must be mentioned in re-
showing that it is co-extensive
co-inci-
gard to the
issue of
and rental price.
dental with fair market value.
rec-
The majority’s
competitive
conviction that
ord before us does not demonstrate
bidding will be the cure needed to fix the
price
nexus between
sealed-bid
and a
assumed ill
being
of land
leased at below
value.”
fair market
At
1009.
rates,
fair market
rests
shaky ground.
on
year,
Only
Comm.,
last
in Miller
Corp.
majority
I also believe
has struck too
Okl.,
(1981),
fits for there probably is no invest-
ment that is more secure than a first mort-
gage.
The trust property
protected
even from
securing
State itself. Liens
the loans of
priority
Commissioners have
over tax
LEE, Petitioner,
M.
Gail
O.S.1971, 24346; See, State,
liens. 68
ex
v.
rel.,
Passmore,
Commr’s of Land Office v.
120;
189 Okl.
115 P.2d
return in favor of more secure AMICK, Judge The Hon. John M. District bonds, such as mortgages and school etc. Wier, and the Hon. Charlie Y. Associate The other relevant of article Judge District District Court 1, 2, sections clearly weighted are Oklahoma, County, Respon Oklahoma favor of safe and conservative financial dents. funds, management of these consistent with 55966, 56053. Nos. preferences dictated art. sec. 6. security Supreme investment is of the Court of Oklahoma. first and highest importance. This balanc- 2, 1982. March ing today. of interests is undone
While the majority obviously correct duty good trustees have a to obtain a
return property, from the trust it is also
true pru- that trustees have a act
dently and to make financially responsible notes federal and state insured loans made to students under Governor, Governor, “A. The Lieutenant any federal or State of Oklahoma insured stu- Auditor, Superintendent of Public In- program, bonds, dent loan and United States struction, and the President of the Board of preference given to be to the securities Agriculture shall constitute the Commissioners order named. The said funds also be Office, charge of the Land who shall have deposits compa- invested in in banks or trust sale, rental, disposal managing deposit nies in Oklahoma to the extent such state, public school lands and lands of the other Deposit insured the Federal Insurance Cor- proceeds and of the from, derived there- funds poration. regulations prescribed under rules Legislature provide “The the manner of Legislature.” selecting aforesaid, prescribe the securities