Lead Opinion
delivered the opinion of the Court. Murphy, C. J., and Eldridge, J., filed an opinion concurring in the judgment at page 308 infra.
While this suit appears from the record to be only a mundane challenge by appellant-taxpayers to the proposed issuance and sale of revenue bonds by appellee Prince George’s County, and the intended loan of the bond proceeds to appellee Washington National Arena Limited Partnership, it raises, by the circumstances of its initiation and prosecution, questions of far greater concern, at least to this Court, than those actually presented by the parties for our determination. We defer for the moment a fuller statement of the facts relevant to the merits of the case, addressing first the question whether the suit is collusive. We conclude that, although it is indeed dismissible on that ground, we are not constitutionally bound to dismiss it and, under the circumstances present here, decline to do so; in addition, we establish with this case specific conditions and procedures under which, in the discretion of the court, actions of sufficient public cоncern, involving a governmental body, or an agency or official thereof, may be adjudicated despite their collusive nature.
I. Jurisdictional Considerations
In response to interrogation by members of this Court at oral argument, counsel for the first time since inception of
We begin by pointing out what is known to every student of our judicial process: that the American system of adjudication from its inception has been grounded on the principle that adversary presentation of issues actually in dispute between the parties to the suit plays a vital and essential role in attaining justice. See Neef & Nagel, The Adversary Nature of the American Legal System from a Historical Perspective, 20 N.Y.L.F. 123, 123-126 (1974). It should be obvious to all that this role is undermined when a defendant selects a plaintiff to sue him, and is further eroded when, in addition, that party pays the counsel fees for his phantom adversary. While we do not question the sincerity of the statement of appellants’ counsel here that they were “prepared to ... take the appellees to the mat on the case,” there is nonetheless no guarantee in this or any other action that the cause will be prosecuted antagonistically and with thе vigor that can be assumed when counsel is paid and directed by his own client. Who can say what subtle psychological influences might be at work — even if counsel is instructed to oppose his employer to the
Our research reveals only one Maryland case relevant to the question of collusive suits in the context presented here. In Fitzjarrell v. Boyd,
If the real and primary object of the suit is to redress the grievance of the plaintiff and there is an actual controversy, involving real and substantial rights between the parties to the record, the suit [will] not be dismissed.
It is only when the sole object of the suit is to affect third parties and when the interest of the parties to the suit is not adverse and when there is no real and substantial controversy between those who appear as adverse parties, that the principles [regarding collusive and fictitious suits] apply.[2]
Although we have no doubt that presentation of the issues by the appellants’ counsel in this case was as vigorous as could be desired, this Court ordinarily does not sit to make such assessments of counsel’s conduct of a suit, and we must, for the reаsons we have pointed out, conclude that selection of counsel and payment of his fees by an opposing party is always equivalent to dominating the conduct of the litigation. That is not to say, of course, that an action in
We think there is no question, then, that the suit here is appropriately characterized as а collusive one, lacking on its face the “safeguard essential to the integrity of the judicial process” — adverseness between the parties. United States v. Johnson, supra,
We begin our discussion by observing preliminarily that we do not here, nor could we, decide a nonjusticiable issue. A prerequisite to the adjudication of any action under the procedures we detail below is its cognizability under the Maryland Uniform Declaratory Judgments Act, Md. Code (1974 & 1976 Cum. Supp.), §§ 3-401 to -415 of the Courts Article, and in this context we recently had occasion to observe that a court has no right to make a determination in declaratory judgment cases in which no justiciable issue is
Nonetheless, though the case is on its face justiciable, it is, as we have already established, collusive because, among other reasons, counsel fees were paid by an opposing party. On that account this action is, beyond all reasonable dispute, dismissible. Are we, however, because of the failure of true, as opposed to technical, adverseness between the parties, constitutionally bound to dismiss the suit in conformity with the principle oft-repeated in our cases that “courts will not decide moot or abstract questions, or, in the absence of constitutional mandate, render advisory opinions”? Harford County v. Schultz, supra,
As noted in our earlier discussion of collusion, Maryland precedent in the area is sparse and, on the question whether a collusive case must be dismissed, non-existent. Nor is the federal precedent entirely illuminating on the point. Where the parties participate in such a manner that no real controversy exists, the action has been termed “an abuse which courts of justice have always reprehended, and treated as a punishable contempt of court.” Lord v. Veazie,
Whenever in the course of litigation such a defect in the proceedings is brought to the court’s attention, it may set aside any adjudication thus procured and dismiss the cause without entering judgment on the merits. It is the court’s duty to do so where ... the public interest has been placed at hazard by the amenities of parties to a suit conducted under the domination of only one of them. [Id. at 305 (emphasis added).]
Professor Wright in his treatise on the federal courts suggests that application of the rule against collusive suits has not been rigid, maintaining that “some of the most famous constitutional decisions have come in what now seem to have been collusive cases.” C. A. Wright, Law of Federal Courts § 12, at 40 (3d ed. 1976). Even were the federal courts bound, as a constitutional matter, to dismiss a collusive suit, the same result would not be mandated under the Maryland Constitution since, unlike the United States Constitution, it contains no express language limiting the judicial power to “cases” or “controversies.” U.S. Const, art. Ill, § 2.
Since we are unable to draw any direct conclusions from the case law on collusive suits, and since such actions are so akin to moot cases, in that adverse interests of the litigants are not immediately at stake in either instance, we turn to an examination of the constitutional basis vel non of the
This Court in Lloyd, while recognizing that we have never addressed the question directly, noted authorities apparently contrary to the proposition that we have always treated the dismissal of moot cases as a decisional rather than a constitutional question. The principal case suggesting
that the Court should not give a decision on the matter presented, even assuming that the Court possessed the power to do so, because the question was not of such general public interest nor so likely to reoccur with such frequency as to call for an advisory opinion.
See Tanner v. McKeldin,
We think that, when our predecessors in Hammond indicated that the Court would not, absent constitutional
The other constitutional limitation which prohibits this Court, or indeed any Maryland court, from rendering such an opinion to the legislature or executive flows from Article 8 of our Declaration of Rights, which mandates that the powers of the three departments of government be “forever separate and distinct.” We have many times stated that Article 8 prohibits the courts from performing nonjudicial functions. E.g., Shell Oil Co. v. Supervisor, supra at 46 [527]; Cromwell v. Jackson,
We think that the constitutional limitations we have just described are those to which the Court in Hammond referred when it indicated that advisory opinions would not be rendered without constitutional mandate.
Only one other case was cited by the Lloyd Court to support the possibility that the decision of a moot case might be impermissible for constitutional reasons, and we will dispose of it with a brief discussion. In State v. Shields,
Finding nothing in either Hammond or Shields to be to the contrary, we conclude there is no constitutional bar to our rendering an “advisory opinion” as that term is loosely used
Recognizing these various considerations — our power to adjudicate cases even though collusive, the practical necessity for judicial decision in a narrow class of those cases, and the need for safeguards to rectify the lack of adverseness which inheres in such suits — and having given the matter substantial thought, we have determined to reconcile the conflicting considerations as follows: A declaratory judgment suit having as a proper party a governmental body, or an agency or official thereof, and
Having delineated the circumstances under which the adjudication of collusive suits arising hereafter may be appropriate, we now proceed to the disposition of the present appeal. Since it is an action seeking a declaratory judgment, involves the validity of a bond issue enabling statute, has as a proper party a governmental body, and is of sufficient public concern, the suit is of the class of cases which may, in the court’s discretion, be adjudicated under the procedure we have just outlined. Obviously, however, appellee Washington National Arena could not have complied with these procedures, and it did not reveal to the court the true nature of the case, as it should have done. Nonetheless, no effort was made to affirmatively conceal the true facts, and the safeguards against insufficient adverseness' we have just enunciated for future such cases have in this case been effectuated through this Court’s own actions: Having undertaken an independent check, far more extensive than we would otherwise deem necessary, upon the research and presentation made by the appellants’ counsel, we are satisfied that their function was adequately performed and that our responsibilities will not be compromised by proceeding to the merits.
II. The Merits
The appellants, Pedro J. and Janeanne F. Reyes, residents of and taxpayers in Prince George’s County, here challenge, as they did in their petition for declaratory and injunctive relief filed in the circuit court for that county, the validity of a portion of Chapter 396 of the Laws of 1973. Md. Code (1957, 1971 Repl. Vol., 1976 Cum. Supp.), Art. 41, § 266A (a), repealing and reenacting Md. Code (1957, 1971 Repl. Vol., 1972 Cum. Supp.), Art. 41, § 266A (a).
Historically, this case had its genesis in Chapter 290 of the
The factual background of this case is derived in part from an agreed statement of facts entered into by the parties. In early 1972 Abe Pollin, who had an opportunity to purchase a hockey franchise from the National Hockey League, approached both the county and the District of Columbia in regard to the financing and construction of a sports facility. In May 1972 the chairman of the county council and the county executive wrote to Pollin, urging him to locate the proposed arena in the county, and agreeing to explore the possibility of financing construction by the issuance of long-term county obligations. In mid-June Pollin was awarded a conditional franchise. In 1971 a site at Largo in the county had been leased by Maryland-National Capital Park and Planning Commission to Potomac Sports, Ltd.; in August 1972 the lease was assigned to Washington National Arena Limited Partnership, formed by Pollin.
In 1973 section 266A (a) of the act, which theretofore empowered municipalities and counties to finance thе acquisition of industrial buildings or port facilities to be leased to others by sale of revenue bonds, was amended by the General Assembly by the enactment of Chapter 396 of the Laws of 1973, so as to include in the definition of industrial buildings “any sports stadium or sports arena in Prince George’s County.” In October 1973 the county council by the enactment of Bill No. CB-165-73 authorized the issuance and sale of revenue bonds in an aggregate principal amount not to exceed $23,000,000.00, having a maturity of not more than 25 years, to provide long-term financing for the cost of constructing the arena. In pursuance of the provisions of the ordinance the county proposes to issue $20,000,000.00 of revenue bonds, which as a result of negotiations will be sold to The Equitable Life Assurance Society of the United States, and to lend the proceeds of the sale to the partnership. The loan is to be evidenced by the note of the partnership in an amount equivalent to the borrowing, and is to be additionally secured by a first mortgage or deed of trust on the partnership’s leasehold interest in the arena. Both the notе and the mortgage or deed of trust will be assigned by the county to a trustee or trustees to be held for the benefit of the holder of the bonds.
In their suit filed in May 1977, Mr. and Mrs. Reyes named as defendants the county, the county executive, the
We turn now to an analysis of the appellants’ contentions, the first of which is that Chapter 396 of the Laws of 1973 is a special law in contravention of Article III, section 33 of the Maryland Constitution. That provision reads, in part:
The General Assembly shall not pass local, or special Laws, in any of the following enumerated cases, viz.: For extending the time for the collection of taxes; granting divorces; changing the name of any person; providing for the sale of real estate, belonging to minors, or other persons • laboring under legal disabilities, by executors, administrators, guardians or trustees; giving effect to informal, or invalid deeds or wills; refunding money paid into the State Treasury, or releasing persons from their debts, or obligations to the State, unless recommended by the Governor, or officers of the Treasury Department. And the General Assembly shall pass no special Law, for*305 any case, for which provision has been made, by an existing General Law.
The principal thrust of the appellants’ argument is that Chapter 396 is a special law because, at the time of its enactment, the arena was the only “sports stadium or sports arena in Prince George’s County,” in the language of the amendment. Had the amendment identified the arena by name, this point might have been well taken. Such was the case in Baltimore City v. Starr Church,
These cases are consistent with the prior holdings of this Court that a special law is a law for a special case, Norris v. Baltimore,
In short, had Chapter 396 specifically identified the arena by name or in any equivalent manner, it might well have
Chapter 396 resembles a public law more than a special law. It does not provide for the relief of a particular named party. It is true that the arena may be the only party affected by Chapter 396, but if the county wishes to acquire or finance other sports facilities in the county, it may do so. Chapter 396 is applicable to all such facilities but it is limited to Prince George’s County.
The appellants next contend that the proposed mortgage on the partnership’s interest in the arena will cause the county to acquire an interest in the arena in contravention of the county council’s Bill No. CB 165-73. While it is true that section 1 (8) of that ordinance provides that the “County will acquire no interest in the Sports Arena, either on its own behalf or for the purposes of creating any security for the Bonds...,” the ordinance clearly contemplated that the county would follow the alternative procedure provided for by section 266H-1 of the act: Instead of acquiring the facility with the bond proceeds the county would lend the proceeds to the partnership to finance the acquisition of the arena, taking in return the note of the partnership evidencing the loan, and accepting as permitted by section 266H-1, as additional security for the repayment of the note, a mortgage or deed of trust on the partnership’s leasehold interest in the arena, which would immediately be assigned to a trustee for the bondholders as security for the payment of the bonds. The trial court found, and we agree, that this was a security interest only, and not an interest in the arena as such.
The appellants also argue that the purpose for which the industrial revenue bonds are to be issued — to retire noninterim financial obligations incurred by the partnership for the acquisition of the arena — is not a valid public
The parties have stipulated that since its completion in December 1973 the arena has made the following payments to state and local governments:
Rent, Maryland-National Capital
Park and Planning Commission $ 426,063.00
Rent to Commission, in lieu of taxes 1,137,500.00
Admission taxes 4,578,358.00
Maryland State athletic commission tax 258.352.00
Sales tax 456.603.00
$6,856,876.00
Additionally, the arena employs 400 people, with an annual payroll of $2,000,000.00. See Annot.,
Having determined that the declaration entered by the Circuit Court for Prince George’s County was proper, we will affirm its decree.
Decree affirmed; costs to be paid by appellants.
Mandate to issue forthwith.
Notes
. No purpose would be served by an attempt to distinguish between fictitious and collusive suits, since most courts tend to use the terms interchangeably. A fictitious suit has been defined as “a mere colorable dispute to obtain the opinion-of the court upon a question of law which a party desires to know for his own interest or his own purposes, when there is, no real or substantial controversy between those who appear as adverse parties to the suits ....” 16A Words and Phrases 37 (1959). A collusive action has been defined as one “not founded upon an actual controversy between the parties to it, but brought for [the] purpose of securing a determination of a point of law for the gratification of curiosity or to settle rights of third persons not parties____” 7A Words and Phrases 283 (1952).
2. We find nothing in Buckler v. Safe Dep. & T. Co.,
. A “friendly suit” is distinguished from a collusive action by the fact that a bona fide controversy exists in the former case. “The amity consists in the manner in whiсh [the controversy] is brought to issue before the court,” Lord v. Veazie,
. There is no requirement that adverse parties to a suit actually disagree or desire contrary results. See Board v. Attorney General,
. In so deciding, we do not retreat from statements in prior eases makingit plain that the declaratory judgment process is not available for the decision of purely theoretical questions, questions which may never arise, questions which have become moot and abstract questions, and that it should not be used where a declaration would neither serve a useful purpose nor terminate a controversy. Hamilton v. McAuliffe,
. “Decisions of the U. S. Supreme Court on justiciability may be peculiarly affected by the fact that the court, under Article III of the U. S. Constitution, can decide only ‘cases’ or ‘controversies,’ .... ” Summers, Justiciability, 26 Mod. L.Rev. 530,-537 n. 15 (1963).
. One court, which has concluded that mootness is a doctrine imposed by the court for its own protection, has examined the origins of the mootness doctrine and suggests that it is a development or refinement of the earlier feigned or collusive suit doctrine which stressed the lack of a genuine controversy and evinced a “concern for saving judicial time for real controversies and for protecting the rights of third parties whose interests might be impaired because of prior litigation.” Kern v. Chicago & Eastern Illinois Railroad Co.,
. One commentator presents a number of explanations for judicial refusal to resolve collusive and moot controversies and to render advisory opinions:
Since adverse interests of private litigants may not be immediately at stake in these cases, or at stake only in attenuated form, the adversaries may not be sufficiently motivated to examine factual and legal issues adequately. Moreover, it may not be possible thus to examine such issues either because important consequences of alternative decisions may be unforeseeable or because the litigants may not be able satisfactorily to identify all issues and relevant considerations. Furthermore, the practice of deciding cases which have little precedent value, and which may have no significant effect on the present status of litigants, may not be a wise use of scarce judicial resources. Such a practice might also adversely affect community acceptability of judicial decisions. [Summers, Justiciability, 26 Mod. L. Rev. 530, 537-38 (1963) (footnotes omitted).]
. Munsell v. Hennegan,
The Lloyd Court also noted:
In cases where the matter is of public importance, this Court,*292 from time to time, has dismissed an appeal where there was no right of appeal or where the appeal was premature, and yet has stated its views on the question presented. Board of Medical Examiners v. Steward,203 Md. 574 ,102 A. 2d 248 [(1954)]; State v. Haas, [188 Md. 63 ,51 A. 2d 647 (1947)]. ... In such instances, the controversy between the parties still lives, and the views of the Court on the questions raised are immediately pertinent and not merely general or advisory, in that they will control the future course of the controversy. [206 Md. at 41-42 ,111 A. 2d at 381 .]
See Lee v. State,
. E.g., Kardy v. Shook, J.,
. It should be noted thаt the words “in the absence of constitutional mandate” modify only the clause respecting advisory opinions, and not the clause concerning moot or abstract questions.
. As the term is used in the United States today, an advisory opinion is a formal opinion by a judge or judges of a supreme court, or by a supreme court, in answer to a question of law, submitted by a legislative body or a governor, a council, or a governor and council, of a state, which question is not related to nor concerned with a case or controversy in actual litigation at the time, and which does not involve private rights. [Stevens, Advisory Opinions — Present Status and an Evaluation, 34 Wash. L. Rev. 1,1-3 (1959) (footnotes omitted).]
In states using the advisory opinion procedure, there is authority to the effect that such opinions “are advisory only, result in no judgment or decree, and bind no one.” Id. at 6 (citing cases).
. We have said that this Court will not render advisory opinions “to the Legislature or to anyone else.” Planning Commission v. Randall,
. The Hammond Court actually determined in the suit before it that, as to some of the issues presented, the plaintiffs lacked standing and there was thus no justiciable case presented.
. Maryland Rules 835 a 6 and 1035 b 8 authorize but do not compel dismissal of a case on appeal that has become moot.
. Shields has been cited for the proposition that the legislature cannot сonfer original jurisdiction on the Court of Appeals, see Shell Oil Co. v. Supervisor,
Shields has also been cited for the principle that the legislature may not require the Court to decide a moot question or an abstract proposition. See Board v. Attorney General,
. The distinction we perceive between the two uses of the term “advisory opinion” has been recognized before:
It is necessary ... to distinguish the general features of that vilified procedure [the advisory opinion] from the conditioning elements of related types of proceedings. The advisory opinion is an anticipatory opinion, given in advance of actual litigation, at the behest of another organ of the government, relating to the validity of action contemplated or already taken by such authority.... As a consequence of the unqualified disapproval by the [Supreme] Court [of the United States] of*299 any appeal suggesting the exercise of such a function, the term has developed a wider and different import. It has been used indiscriminately to describe nearly every type of proceeding denominated by the Court as non-justiciable and not within the limits of its jurisdiction as circumscribed by the Constitution. [Comment, The Advisory Opinion and the United States Supreme Court, 5 Fordham L. Rev. 94, 95-96 (1936) (footnotes omitted).]
See Weinstein, Rendering Advisory Opinions — Do We, Should We?, 54 Judicature 140,143 (1970).
. In this regard it may be helpful to recall the language of the Court in Lloyd v. Supervisors of Elections,
[T]he better considered and reasoned cases take the view that only where the urgency of establishing a rule of future conduct in matters of important public concern is imperative and manifest, will there be justified a departure from the general rule and practice of not deciding academic questions. They hold that if the .public _ interest clearly will be hurt if the question is not immediately decided, if the matter involved is likely to recur frequently, and its recurrence will involve a relationship between government and its citizens, or a duty of government, and upon any recurrence, the same difficulty which prevented the appeal at hand from being heard in time is likely again to prevent a decision, then the Court may find justification for deciding the issues raised by a question which has become moot, particularly if all these factors concur with sufficient weight.
. The lease is for an initial term of 20 years accounting from September 1, 1972. At the expiration of the initial term, the lessor has the option of renewing the lease for 10 years or acquiring the improvements. At the end of the first renewal term, the lessor has the option of renewing the
. No appeal was taken from an order sustaining the demurrer of the individual defendants.
Concurrence Opinion
concurring in the judgment:
We concur in the judgment affirming the decree, but not in the holding of the majority that the case is dismissible as being collusive.
